Latest WBJ Pricing Index Confirms Company Reports

Date: September 11, 2006

Source: Waste Business Journal

The latest survey of waste disposal and processing facilities indicates continued increases in both pricing and volume. The statistics which are based on direct surveys of landfills, transfer and recovery facilities and waste-to-energy plants, confirm what many of the major waste management companies have reported to their shareholders. Continued strength in the economy is driving steadily increasing demand for disposal as evidenced by 3% growth in year over year landfill volumes. According to James Thompson, president of Waste Business Journal, "a generally robust economy is contributing to increased commercial volumes while a modestly growing population ever more addicted to disposable consumer products is driving residential volumes."

Increased demand has in turn driven increases in pricing indicated by rising tipping fees. The statistics show a 4% increase in year over year pricing. The reasons are several. Demand for disposal is catching up with declining excess capacity, there have been increases in operating costs stemming from higher labor, healthcare, fuel and compliance costs that apply universally, which gives companies less room to use discounting to win market share. As a consequence, municipal clients are a little more forgiving of price increases.

These latest figures come from Waste Business Journal's Monthly Pricing Service which is available by subscription for $295 per year. To learn more, call (619) 793-5190 or visit www.wasteinfo.com/wbjpriceindex.htm.

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