Trash Challenges Amid COVID-19 Pandemic

COVID-19 has created a new normal for our everyday lives. We’re spending more time at home. And our waste has shifted from restaurants, offices and stores to our homes, which has taken a toll on trash hauler’s businesses.

On first-quarter earnings calls this week, Republic Services Inc. and Waste Management Inc. both noted declines on the commercial side of their business for late March and April and Waste Management also saw a downturn in industrial volumes. Both haulers are also reporting an effect on margins.  

But the trash hasn’t slowed down everywhere. With families at home under quarantine it’s piling up curbside. With most residential trash pickup based on fixed contracts, this doesn’t generate haulers more revenue to offset the commercial slow down. Both Republic Services and Waste Management noted that the pandemic had little effect on the residential parts of their businesses. 

Donald Slager, Republic Service’s CEO said, “The worst is behind us.” But time will tell if waste collection will go back to normal in the near future. Capital One Financial Corp. is one company that is preparing office-based employees in the U.S., Canada and U.K. to work from home at least through September 7. 

As waste workers continue to serve on the frontline, it’s nice to see that both Republic Services and Waste Management are supporting their workers. Waste Management is guaranteeing 40 hours of weekly pay to all full-time employees during the pandemic, while Republic launched a $20 million 'Committed to Serve' initiative.

Read the original article here.