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Small skip operators expected to go bust in 2009

Many small skip operators will go bust this year, according to the director of a London-based rubbish removal company. managing director Jason Mohr told MRW that 2009 is likely to be a very tough year for skip hire companies.

He said: Skip companies face falling demand and rising costs. Demand is down due to the slowdown in construction, shop fits and household improvements and disposal costs look set to rise significantly as landfill tax increases take effect and commercial transfer stations shift from charging skip operators volume based rates to tonnage based rates.

Mohr said that his company was in an ideal position to ride out the storm. collects commercial and domestic waste and, having always been very focused on minimising the amount of waste it takes to landfill, will not be affected to the same extent as the skip operators. truck teams typically segregate materials at the point of collection and then look to reuse or recycle rather than landfill wherever possible. 

He predicted that operators of transfer stations are likely to suffer: Falling gate volumes, landfill tax increases, and a weakened market for recyclables will start to make certain facilities unprofitable.  This is likely to lead to closures and further consolidation within that industry.

Mohr also expects several of the planned material recycling facilities will be postponed as projects struggle to secure funding and recyclable material prices continue to be volatile. He said the case to build energy-from-waste plants will be stronger than ever as energy becomes a more predictable product than recyclables.

As the costs of waste disposal look set to rise across the board, Mohr said that corporate clients will start demanding more information from their waste management companies about the quantities and types of waste they are generating, so they can explore smarter alternatives than sending it all to landfill.  Increasingly if you cannot provide your clients with quality data, they will start looking elsewhere, he added.

Image: MD Jason Mohr

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