The 2020s have been a tough time for the waste industry so far. And with waste costs rising on top of this, it isn’t looking like it is getting any better. So, let’s share some of the changes occurring in the industry and some of the many tips for overcoming this hurdle of rising costs.
Why is the Cost of Waste Rising?
With inflationary cost factors building year on year, the reasons are plentiful.
To start with, Brexit has negatively impacted the pound, increasing prices across a range of services. Furthermore, hard costs for waste transportation have increased steadily, adding strain on supply chains and profit margins.
Higher Energy Costs
With over 100 million tonnes of waste being produced by the UK every year, environmentally efficient and responsible waste management is essential. This has been especially true in the last few years. What had been historically bound for landfill is now headed, thankfully, for recycling to meet UK and EU sustainability targets.
Recycling waste uses up a lot of energy in comparison to the landfill option. Although recycling reduces the energy needed to make products from raw materials the cost of recycling lands on the books of waste management. The recent rise in energy costs has put extensive inflationary pressures on the recycling sector.
Waste Export Costs Rising
You also have the rising cost of fees & taxes due to the exporting of the UK’s waste. The Netherlands is a major waste destination for a lot of UK waste, and since 2020, the Dutch government has implemented a charge of 32 Euro per tonne on current waste import taxes. In addition, Sweden, another prominent destination for UK waste, also implemented an incineration tax hike. Because of this, waste management companies have felt a strain on profits in traditional export markets. Although the domestic market for refuse-derived fuel (RDF) is heating up leading to a dogfight for waste tonnage within the UK, the increasing costs of exporting waste has shifted the landscape within the waste sector.
What are the Solutions to Overcome this Problem?
As we all know, the last few years have been tough on a broad range of industries, and the waste management sector is not exempt from the pain of rising costs. So how can firms mitigate the rising cost of waste management? Not only should there be a focus on cost reduction, but sustainable, environmentally sound solutions must be sought after.
Review Current Processes
GPT Waste can often lie at the heart of a sustainable and cost-efficient waste management solution. With national buying and brokering power, GPT’s approach is to find a waste solution that’s bespoke and ultimately cost-effective.
On average, GPT has been able to save clients between 20 and 30% on their annual waste management costs. Through a thorough review of processes, aligned with a deep understanding of the market forces at play within the UK waste market, GPT is able to construct robust waste management strategies that push prices downward, increase a client’s green credentials and even reduce waste tonnage from the outset.
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