Hazardous Waste Market Suffering From Excessive Competition
Revising Corporate Strategies May Be Key To Market Recovery

Environmental Information Limited has just completed the second in its series of reports, Hazardous Waste Generators Management Preferences. These new released reports are based on the most recent nationwide generator and facility reporting.

Perhaps the most important data from this study is the documentation of the degree to which the market has been divided amongst commercial competitors. It is a testimonial that nearly ten years of aggressive price competition has failed to produce the type of market consolidation that is desired in mature markets. Instead, the aggressive price competition has led to a highly fragmented market that has helped keep the sector struggling financially.

The data developed from the generator and facility reports found that the majority of the commercially managed hazardous waste originally generated (non-TSD) in region 2 is managed in other regions. While there are situations where hazardous waste must be sent to specialized waste treatment or disposal facilities, the high degree of diversion of waste from region 2 facilities is also an indication of discount pricing.

The extensive data compiled in these reports suggest that this sector could benefit by changes in corporate strategy. More specifically, firms need to focus their corporate strategy on consolidating businesses where they have a competitive advantage. Firms also need to exit markets in which they are at a competitive disadvantage and are basically competitive only by heavy discounting.

EI has released reports on USEPA Regions 1 and 2 and expects to release reports for USEPA Region 3 and 4 in June 2002. EI believes that these reports provide the best currently available snapshot of what current strategy has done to the marketplace. They also provide a foundation for firms to examine how shifts in corporate strategy could benefit the marketplace.