21st Century Policy Project

Future Search Conference Issue: Consolidation of Industry

Issue Definition and Scope

The consolidation of smaller companies to form larger ones is a reality in virtually all business sectors, driven by economics and the administrative savings that can result. The impacts of consolidation on all aspects of solid waste generation and management – from waste generation, to disposal and recovery and the development of markets for recovered materials – are multiple and varied. Consolidation within manufacturing and retail industries may also have an impact on current waste management practices in California.

Background

Within the solid waste industry, consolidation began in earnest in the early 1970’s with major companies acquiring large regional companies throughout the nation. We are now seeing a second tier of consolidations within the solid waste industry, with regional companies acquiring smaller local companies. One impact of these acquisitions is that an increasingly smaller number of large companies manage increasingly larger portions of the solid waste stream. (It is estimated that four large waste management companies currently manage approximately over 50% of the state’s waste stream.) We have also recently witnessed mega-mergers (Mobil Oil and Exxon) as well as mergers in the retail industries.

Issue Questions

• What is the impact of consolidation on solid waste management policy in general, and specifically on diversion/recycling policy and program implementation?
• How does consolidation in a few hands, and the existence of mega-landfills, impact prices, competition and available services?
• How does consolidation affect the ability of state and local government to effectively regulate solid waste facilities, and the ability of locals to negotiate and address local issues with waste management companies?
• What is the impact of losing smaller, locally-oriented waste management companies?
• How are local and/or state government costs affected by consolidation (such as by the potential early closure of facilities which may result from either Subtitle D or industry consolidation)?
• What is the impact of consolidation on a broader scale (i.e. not just within the solid waste industry) on material flows and prices?
• What is the impact of product standardization to meet global market needs on waste management program policies and their implementation?
• What is the impact of manufacturer responsibility in particular, and corporate philosophy in general, on waste management programs and policies given the increasingly global market place? How can/do social responsibility trends affect public investments in waste management/recycling industries?
• How does consolidation/globalization in the retail, service and manufacturing sectors affect the ability of the state to promote recycled-content goods and services?
• Does/should the state have a role in limiting how much waste a landfill can take?

Last updated: October 18, 2007