Waste Management 2013 Annual Report Download - page 99

Although many waste management services such as collection and disposal are local services, our strategic
accounts program works with customers whose locations span the United States. Our strategic accounts program
provides centralized customer service, billing and management of accounts to streamline the administration of
customers’ multiple and nationwide locations’ waste management needs. In 2011, we acquired Oakleaf Global
Holdings and its primary operations (“Oakleaf”), which provides outsourced waste and recycling services
through a nationwide network of third-party haulers. Oakleaf has increased our strategic accounts customer base
and enhanced our ability to provide comprehensive environmental solutions.
We continue to invest in businesses and technologies that are designed to offer services and solutions
ancillary or supplementary to our current operations. These investments include joint ventures, acquisitions and
partial ownership interests. The solutions and services include the collection of project waste, including
construction debris and household or yard waste, through our Bagster®program; the development, operation and
marketing of plasma gasification facilities; operation of a landfill gas-to-liquid natural gas plant; solar powered
trash compactors; and organic waste-to-fuel conversion technology. Part of our expansion of services includes
offering portable self-storage services; fluorescent bulb and universal waste mail-back through our
LampTracker®program; and a sharps mail return program through which individuals can safely dispose of their
used syringes and lancets using our MedWaste Tracker®system. In addition, we have made investments that
involve the acquisition and development of interests in oil and gas producing properties. Finally, we rent portable
restroom facilities to municipalities and commercial customers under the name Port-o-Let®, we service such
facilities and we provide street and parking lot sweeping services.
Competition
We encounter intense competition from governmental, quasi-governmental and private sources in all aspects
of our operations. In North America, the industry consists primarily of two national waste management
companies and regional and local companies of varying sizes and financial resources, including companies that
specialize in certain discrete areas of waste management, operators of alternative disposal facilities and
companies that seek to use parts of the waste stream as feedstock for renewable energy and other by-products.
Some of our regional competitors can be significant competitors in local markets and are pursuing aggressive
regional growth strategies. We compete with these companies as well as with counties and municipalities that
maintain their own waste collection and disposal operations.
Operating costs, disposal costs and collection fees vary widely throughout the areas in which we operate.
The prices that we charge are determined locally, and typically vary by volume and weight, type of waste
collected, treatment requirements, risk of handling or disposal, frequency of collections, distance to final disposal
sites, the availability of airspace within the geographic region, labor costs and amount and type of equipment
furnished to the customer. We face intense competition in our Solid Waste business based on pricing and quality
of service. We have also begun competing for business based on service offerings. As companies, individuals and
communities look for ways to be more sustainable, we are investing in greener technologies and promoting our
comprehensive services that go beyond our core business of collecting and disposing of waste.
Seasonal Trends
Our operating revenues tend to be somewhat higher in summer months, primarily due to the higher volume
of construction and demolition waste. The volumes of industrial and residential waste in certain regions where
we operate also tend to increase during the summer months. Our second and third quarter revenues and results of
operations typically reflect these seasonal trends. The operating results of our first quarter also often reflect
higher repair and maintenance expenses because we rely on the slower winter months, when waste flows are
generally lower, to perform scheduled maintenance at our waste-to-energy facilities.
Service disruptions caused by severe storms, extended periods of inclement weather or climate extremes can
significantly affect the operating results of the affected Areas. On the other hand, certain destructive weather
conditions that tend to occur during the second half of the year, such as the hurricanes that most often impact our
operations in the Southern and Eastern U.S., can actually increase our revenues in the areas affected. While
9