The carryover benefits of pricing leverage implemented throughout the 2nd half of last year and a robust M&A environment overthe past couple of years will be welcome buffers against increasing challenges to the industry's ability to expand volumes and margins. Those headwinds include weak recycling commodity prices, lower CPI-linked pricing resets, stubborn internal cost inflation (mainly wages), consumer spending shifting away from goods, and macro pressures on large volume-generating sectors, including construction, retail, and manufacturing. Still, the industry maintains proven cash flow preservation levers, including reduced overtime and discretionary expenses, equipment optimization, efficiencies from prior investments in automation, and the postponement of significant capital outlays.
Industry Update: Refuse and Recycling Winter 2023
