Published Thursday 28th February 2019
With prices set to rise in April 2019, companies must prepare or face losing money.
Global markets and economics are greatly influencing prices paid for waste disposal in the UK currently. We predict that these challenges will show themselves in above-average price rises from April 2019. Therefore it is of huge importance to make sure your business is suitably prepared in order to minimise the impact of these price increases. This article provides more detail about the coming price changes and we provide three very simple methods to follow to prepare your business.
What costs are rising?
April is historically a time where landfill tax rises. The Government has scheduled a 2.7% rise in Landfill tax for April 1st 2019, bringing Landfill tax per tonne to £91.35. Landfill availability in the UK is diminishing, resulting in a shortfall in comparison to the amount of waste generated. If you think your business is not at risk of any rises because your waste doesn’t go to landfill, think again! The lack of alternative waste treatment facilities such as Energy from Waste plants and recent waste import bans by China – means that finding places for waste to go and disposing of it cheaply is becoming more and more challenging.
China as one of biggest importers of waste in recent years has placed an import ban on 24 waste streams including unsorted mixed papers and mixed plastics. This is shaking up the waste commodity market. During our negotiations on behalf of our clients over the past 12 months, we have already experienced a push for higher increases for ‘Mixed Recycling’ services than for ‘General Waste’ collections.
The Impact of a New Financial Year
A new financial year means that waste disposal companies will be looking to maintain profit levels. The waste industry is a labour-intensive industry where high numbers of staff are employed to collect and process waste. Higher payroll costs including pensions and the living wage, fluctuating currency values, rising utility prices and supplier prices rises are causing significant operational challenges.
How acting now will save you money
At ERA, we recognise that costs of running a business are growing all the time – there is no better time to review your waste spend. There are several ways to mitigate this rise; but only by acting NOW, can you get better value from your waste contract:
ERA will work with your business to:
- Annually benchmark your supplier’s pricing against the marketplace, if you have not reviewed your waste spend or waste contractor for some time, you are particularly at risk of being impacted the hardest.
- Review your waste sorting procedures against current best practice to make sure that you are optimising segregation and recycling. Despite this year’s rises, recycling is normally cheaper.
- Consider reviewing your waste schedules to ensure an optimum service is in place. Are suppliers collecting fresh air or could matching collection days to busy periods help?
Many clients are turning to us for advice on what is a volatile market presently. If you would like more information about how we could reduce costs in your business, please contact us.
About the Author: Daniel Howells, is a Chartered Waste Manager and Waste Management Consultant. He is a former Key Account Manager at one of the largest waste management companies in the UK. Specialising in the development of strategic plans and project management of key long-term projects providing cost saving initiatives. Daniel’s typical clients have included national high street Retailers, Supermarket chains, the NHS and the Construction sector.
+44 (0)7786 141 011