The robust industry conditions of last year, highlighted by exceptional pricing strength within a backdrop of multi-decade high inflation, are a tough act to follow and not likely to be repeated. Still, the industry margin and cash flow setup for 2024 remains positive, with moderating internal cost inflation helping to offset a less robust CPI-based pricing environment. Incremental operating synergies from vigorous acquisition activity over the past few years and the potential for elevated recycling commodity prices should also support margin expansion. Additionally, the anticipated start of government-sponsored infrastructure projects and the Fed loosening by mid-year should result in volume tailwinds from increased C&D and industrial activity and a more robust M&A environment.
Industry Update: Refuse and Recycling Winter 2024
