With waste costs rising, we look to the future of waste costs and what businesses need to look out for over the next few years. With recent EU and UK targets wanting recycling to constitute 65% of all waste by 2035, sustainable waste management will become more and more critical as the years go by. Cost pressures from rising sanctions for existing methods of waste disposal like landfills and the exporting of waste are likely to play a big part in this. So, is the future of waste management just an ever-increasing arena for cost inflation or can this be mitigated?
Potential Increase in Waste Crime
One of the biggest potential problems with costs continuing to rise is waste crime. Unscrupulous waste contractors have been existing in the market for some time. The prevalence of fly-tipping events has skyrocketed in the UK over the past few years. Without a complete waste stream, transparency firms may unwittingly be subject to persecution due to waste crimes committed by rogue third-party operators. Not only is criminal action of great concern it’s the detriment to the local environment that takes a mighty hit from shady disposal practices.
However, there is a solution to this potential current and future problem. Complete waste stream transparency backed by a robust waste management plan can protect firms from damaging and illegal rogue practices.
Increase in Mergers and Acquisitions
With waste management playing such a big part in reaching environmental targets in future years, investors are likely to look more and more into these companies. As a result, the industry should see an increase in mergers and acquisitions.
The £11.2 million Suez and Veolia merger made headlines last year and this type of M&A activity isn’t showing any signs of slowing down. With more mergers and acquisitions occurring in the market, costs can increase due to a lack of innovation and competition in the market. The other loser is the environment and fears grow that stifled innovation will leave firms unable to achieve their emissions targets.
Will there be a Potential Breaking Point in the Industry?
Supply chain issues are one of the biggest problems causing a breaking point in the industry and are likely to continue. Shortages in HGV drivers thanks to both Covid and Brexit have made it harder for UK firms to get the transport necessary to transport waste without paying hefty amounts on tonnage.
This reduction in options available for the servicing of existing waste contracts has wildly increased the costs, making it difficult for some waste management firms to get back to the competitive prices offered before Covid.
However, there are ways to overcome this issue. GPT reviews and engages with the full spectrum of waste providers in the UK. It’s through our unique broker model that we can understand your needs and navigate the supply chain issues, finding the best solution to specific waste issues rather than using a one size fits all approach.
What Does the Future Look Like in the Waste Management Industry?
Care for the environment and sustainability has never been more critical than now. Because of this, many experts predict that waste will reduce and that rising costs will play a big part in that happening, thanks to a dynamic attitude when it comes to manufacturing and product/packaging production. The best way to reduce waste is to not create it at all. Furthermore, inevitable waste (waste that companies need to produce no matter what) will be supported by waste management companies that can provide the data and transparency to track, report, and reduce waste throughout the entire waste stream.
GPT Waste offers an industry-leading, transparent and technology-backed offering to the UK waste sector. We can offer strategic reviews of your waste management requirements in order to identify environmental and cost benefits. Our approach has made us the UK’s leading independent waste management company. To speak to our expert team about your waste management requirements, call 0844 854 5000