Waste Management

What is Waste Management?

Waste Management is North America's leading provider of comprehensive waste management services. Serving both residential and commercial customers, the company's integrated waste solutions cover every aspect of waste management, including collection, transport, disposal, recycling, and renewable energy services. Believe it or not, Waste Management is so big, it likely plays a part in your everyday life without you even realizing it.

Background

Waste Management was founded in 1968 by Dean Buntrock and Wayne Huizenga. Buntrock, who had inherited a small waste collection company, collaborated with Huizenga to combine their firms, capitalizing on the Solid Waste Disposal Act of 1965 which encouraged the development of larger, more organized waste management companies. Before the two joined forces, waste management companies combining over state lines were rarely heard of (Buntrock was in Chicago while Huizenga was in Florida.) Following their collaboration, the two aimed to capitalize on a growing market through rapid growth.

Growth

Buntrock and Huizenga viewed the 1965 Solid Waste Disposal Act as a new era in American waste management. They foresaw increasing population pressures and rising environmental consciousness necessitating higher industry standards and formed with a clear goal of building a large, capitalized waste management company.

From its inception, WM prepared for this goal of nationwide expansion. They partnered with Arthur Andersen & Company to create a centralized information network and managerial control system, ensuring uniform procedures across their numerous subsidiaries. They also ventured into the field of chemical and toxic waste treatment, recognizing the potential profits from safely disposing of the growing mass of hazardous waste.

In 1971, WM IPO’d and used its newfound proceeds to acquire 75 companies within 18 months of going public. Thanks to both the oil crisis of 1973-1974 and the 1976 Resource Conservation and Recovery Act, WM was able to separate itself from its competition. Their foresight into the future of Waste Management and their capital that allowed them to purchase plants capable of the newly set standards allowed them to set low prices that their competition couldn’t reach. .the public's awareness of resource conservation and the effects of unrestrained energy use, leading to an increased emphasis on professional, safe, and environmentally responsible waste handling. WMI offered such services at a significantly lower cost than municipalities, further fueling its success.

Through the 80s and beyond, WM didn’t stop moving towards its goal of becoming a global waste management company. They acquired huge companies like SCA Services and Wheelabrator all while battling a growing public outcry aimed at landfills and pollution. Today, they’ve moved into nearly every facet of the waste management industry, becoming the dominant force their founders originally dreamed of.

Key Takeaways:

1. Timing: Both Buntrock and Huizenga’s decision to combine their waste collection companies aligned perfectly with the passage of the Solid Waste Disposal Act of 1965. This legislation ushered in a new era for the waste management industry, imposing stricter standards and effectively pushing out less equipped businesses. Furthermore, the population growth and increasing environmental consciousness meant that the waste management industry was about to start skyrocketing, creating a thriving market for organized, large-scale waste management firms like WM set out to be.

2. Vision: From the onset, founders Dean Buntrock and Wayne Huizenga envisioned Waste Management as a national force in the waste management sector. They implemented an aggressive growth strategy focused on acquisitions and foresaw the urgent need for professional waste management in light of rising environmental concerns. They boldly ventured into the nascent field of chemical and toxic-waste treatment, displaying not only their business acumen but also their commitment to sustainable growth. This powerful combination of strategic vision and bold action shaped WMI into the industry giant it is today.

3. Organization: A pivotal factor in Waste Management’s success was the robust organizational system set in place by the founders. Recognizing the complexities of managing a growing, nationwide enterprise, they heavily invested in a centralized information network and managerial control system developed in partnership with Arthur Andersen & Company. This system allowed for uniform procedures across all subsidiaries, enhancing operational efficiency and centralizing all data including the monthly volume of garbage handled by each truck and both the billing and payment patterns. As a result, this gave them access to a powerful set of data and allowed them to make informed business decisions at a massive scale.