Although elevated borrowing costs and tightening credit conditions have dampened macro trends, the carryover benefits from pricing leverage over the past 12 months and a robust M&A environment over the past couple of years have held those headwinds to a near stalemate. Still, weak recycling commodity prices, past-peak CPI-linked pricing resets, stubborn expense inflation, shifting consumer spending away from goods, and macro pressures on manufacturing, construction, and other large volume-generating sectors are challenging the industry's ability to expand volumes and margins. And, if conditions dictate, the sector maintains proven recession-resistant cash flow preservation levers, including discretionary expense reductions, equipment optimization, automation efficiencies, and the postponement of capital outlays.
Industry Update: Refuse and Recycling Spring 2023
