SEATTLE (Waste 360): In his latest report, “Solid Waste: Revising Models for C-19, Volume Down, Price Durable, Deal Flow Slows, FCF Stands Out,” Michael E. Hoffman, managing director and group head of diversified industrials at Stifel, explains that the impact of COVID-19 on solid waste will “look like both 9/11 and the Great Recession.”
“The former was a shock and awe; the consumer paused,” according to Hoffman. “The latter, the U.S./North American economies were over levered, which [they are] not now, but wholesale business shutdowns had a volume impact. Today, solid waste has more control of cost/capital than ever before. Social distancing and big urban settings forcing closure of food, beverage, hospitality and entertainment lead to a big drop in collected volume and commercial customers asking for service on hold/cancellations.”
“We assume an annual 15 percent hit to volume of 10 percent for third-party commercial, C&D [construction and demolition] and special waste volume and 5 percent direct commercial collection sales cut in half for two months. Residential volumes will be up and, in many cases, contracts allow for charging for extra bin/bag pickups,” he added.
Courtesy: www.waste360.com
Copper Scrap View All | |
Alternator | 0.32 (0.01) |
#1 Copper Bare Bright | 3.77 (0.07) |
Aluminum Scrap View All | |
356 Aluminum Wheels (Clean) | 0.73 (0.02) |
6061 Extrusions | 0.64 (0.02) |
Steel Scrap View All | |
#1 Bundle | 475.00 (0) |
#1 Busheling | 495.00 (0) |
Electronics Scrap View All |