A Huge Profit

trashtocash
As we continue to generate staggering amounts of solid waste, companies like Waste Management profit by turning trash into cash. Trash collection and disposal is a huge source of cash flow, generating nearly $8.5 billion of annual revenue for Waste Management.

Another large source of revenue comes from owning and operating its own vast network of landfills.  Not only does owning the landfills save Waste Management money, it generates a lot of revenue from other providers utilizing its landfills.

The US disposes enough trash every day to fill 50,000 garbage trucks, with 18,000 pounds of trash in each.  The garbage needs to end up somewhere most likely at a Waste Management owned landfill.

The U.S.’s growing garbage problem is a hassle for government officials, but it’s an opportunity for investors to achieve growth amid an accelerating but vulnerable economic recovery.

The search for new methods of disposal is becoming more frantic among federal, state, and municipal leaders in the US because of the enormous variation in waste capacity among the states and the rapidly expanding population. New regulations from global organizations designed to boost environmentally friendly technologies are a disadvantage for global players such as Waste Management because technology they choose to pursue will likely divert waste from their landfills where they are poised to make the most money from.

Garbage will continue to be generated in vast quantities what Waste Management decides to do with it will be something to keep an eye on.  Will they choose to do what is best for the environment or what is best for their investors…to be continued.

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