Industry Analysis & Industry Trends
Over the past five years, strong demand from local authorities for municipal waste collection services through contracts with private collection companies has contributed to strong industry growth in recent years. As more local governments outsource refuse collection services, revenue and services within the industry continue to grow. Government policies are also driving industry growth. A greater focus on recycling programs, and the expansion of these policies into newly regionalised areas, has increased the need for solid waste collection and recyclable waste collection by industry firms... purchase to read more
Industry Report - Industry Investment Chapter
The capital intensity ratio indicates the level of capital required by a typical firm operating in the industry compared to the wage level paid. Using total industry wages, which are estimated at 15.5% of industry revenue in 2012-13, as a proxy for the industry's labour level, and depreciation (6.3%) as a proxy for capital, IBISWorld estimates that this industry has a capital to labour ratio of around 1:2.45 in 2012-13. This shows that for each dollar invested in plant, equipment, machinery, vehicles and buildings, around $2.45 is required for wage and labour on-costs. This figure indicates the industry has a high capital intensity level.
This high capital intensity level is mainly due to high costs associated with vehicle purchases for solid waste collection... purchase to read more