The slowdown in the commercial building, demolition and C&D recycling sectors brought about by COVID-19 shutdowns and related pullback on investments had many industry participants wary of an uncertain future at the start of the year.

In addition to mass vaccination availability, a sweeping infrastructure plan was the thing many professionals cited as having the potential for counteracting the lingering aftereffects of the pandemic.

Such a plan took shape when President Biden released his administration’s $2 trillion infrastructure initiative in March.

The plan proposes to modernize 20,000 miles of highways, roads and main streets; fix the 10 most economically significant bridges in the country in need of reconstruction; repair the worst 10,000 smaller bridges; replace thousands of buses and rail cars; repair hundreds of stations; renew airports; and expand transit and rail into new communities.

The plan also commits to build, preserve and retrofit more than two million homes and commercial buildings; modernize schools and childcare facilities; upgrade veterans’ hospitals and federal buildings; and eliminate all lead pipes and service lines in the country’s drinking water systems.

Biden, who calls the plan “the single-largest investment in American jobs since World War II,” forecasts that the proposal could help create jobs for millions of Americans. Despite the prospects for industry professionals, the president faces significant political opposition in passing the bill in its current iteration.

Republicans have generally called out the plan for being too costly, having too many elements nonessential to infrastructure included, and relying on increases to corporate taxes as a key funding mechanism as reasons for their opposition.

In an effort to garner across-the-aisle support, Biden has made it clear he is willing to work with Republicans to find common ground.

“I’m prepared to negotiate as to the extent of my infrastructure project, as well as how we pay for it,” Biden has said.

Republicans have countered with infrastructure proposals a quarter to a third of the size the one President Biden initially unveiled.

Though Democrats could conceivably work to pass infrastructure legislation independently through a process known as budget reconciliation, Biden has continued to meet with both sides of Congress to try to build consensus for passage of the bill. While talks are ongoing, the political jockeying could carry on for months as both parties negotiate the scope of the bill.

With the construction, demolition and recycling sector eager to get back to pre-COVID business, the industry will be keeping a close eye on negotiations. With its passage, an infrastructure plan could be a spark that helps lay the groundwork for long-term stability that seemed so elusive just a few months ago.

Wheelabrator announces integration of 10 waste businesses into WIN Waste Innovations brand

Wheelabrator Technologies Inc., Portsmouth, New Hampshire, formerly announced April 6 the integration of 10 waste industry businesses into a single company operating under the WIN Waste Innovations brand name.

WIN Waste Innovations is comprised of the former Wheelabrator Technologies as well as Stamford, Connecticut-based City Carting & Recycling and Tunnel Hill Partners; Londonderry, New Hampshire-based Charles George Waste Disposal & Recycling; Westboro, Massachusetts-based United Material Management; Eliot, Maine-based Shipyard Waste Solutions; Atkinson, New Hampshire-based Bay State Disposal; Westchester County, New York-based County Waste Management Inc.; Fitchburg, Massachusetts-based Fiore Trucking Recycle & Disposal and the commercial and residential subscription business of West Bridgewater, Massachusetts-based Noonan Waste Service.

Wheelabrator first discussed the transition to the WIN Waste Innovations brand in March.

As one entity, the legacy businesses now represent a vertically integrated, curb-to-grid waste management company designed to “enhance customer service and deliver superior, sustainable waste solutions tailored to the needs of each customer,” the company says.

Along with the new operating name, WIN Waste Innovations unveiled its tagline to convey the brand’s dual focus on customer service and sustainability: Performance for the Planet.

“By bringing together these 10 industry-leading companies under a single brand, WIN Waste Innovations has positioned itself to deliver essential services to our customers and communities while performing for the planet,” WIN Waste Innovations President and CEO Robert C. Boucher says. “We strive to exceed our customers’ expectations every day, delivering comprehensive, tailored waste services from a professional, responsible team you can count on. Our passionate and professional employees are dedicated to delivering exceptional customer service and end-to-end solutions that begin with reliable waste pickup at the curb and end with flexible disposal options designed to support a healthier planet.”

The company operates from Maine to Florida and as far west as Ohio. By retaining the teams that managed the respective legacy brands, the company says that WIN Waste Innovations will broaden and deepen its operational footprint in the Northeast and other markets of strategic interest, while ensuring a seamless transition for customers. In all, the combined company operates 50 strategically located collection, transfer and disposal assets, and serves more than 110,000 collections customers on 231 collection routes utilizing 346 total collection vehicles and eight hauling locations.

“The combination of these established collection, hauling, transfer and waste-to-energy companies enables WIN Waste Innovations to provide the holistic approach to waste management our customers and communities need,” Boucher says. “In addition to providing exceptional customer service at every point along the value chain, we are preserving our natural resources.

“As a combined company, each year we convert 6.7 million tons of waste into clean, renewable energy to power 340,000 homes and recycle more than 234,000 tons of plastic, paper and metal from the waste stream.”

DTG Recycle acquires Kleensweep’s collection and recycling division

DTG Recycle announced March 26 that the company has acquired Kleensweep Construction Services’ collection and recycling business division. The deal is effective immediately.

DTG is a Mill Creek, Washington-based solid waste hauling and recycling company specializing in construction, demolition, industrial and manufacturing waste. The company, whose operations are concentrated in the greater Seattle/Tacoma region, has more than 300 employees, nearly 2,000 roll-off and recycling containers, and nine material recovery facilities.

Kleensweep, Milton, Washington, has been providing collection and recycling services to the southeast Seattle metropolitan region for more than 24 years. According to a release, the company decided to sell its collection and recycling businesses to DTG to focus on its earthwork business.

DTG says that this acquisition will help the company establish itself in one of Seattle’s growth corridors where the company currently has a limited presence.

“I am honored and excited for this acquisition, and am looking forward to adding Kleensweep’s staff and providing them additional opportunities for professional advancement,” DTG Recycle CEO Tom Vaughn says.

“I cannot think of a better company to acquire our collection and recycling division to ensure the legacy of my father and I is carried out in the manner that we want,” Kleensweep CEO Jeremy Stafford says.

Baltimore introduces new wood recycling project

A new wood recycling initiative in Baltimore is helping the city create a circular economy and new jobs through the repurposing and reselling of salvaged wood, reports the World Economic Forum.

The Baltimore Wood Project will work with partners such as the U.S. Forest Service to rethink and reclaim wood in the city in order to reduce landfill waste, rejuvenate disused land and engage local communities.

The pilot project plans to salvage wood from abandoned buildings and urban trees before repurposing it and reselling it locally, thereby creating a closed loop system or circular economy which has a host of environmental, economic and social benefits.

According to the Forest Service, wood accounts for more than 10 percent of the annual waste material generated in the U.S. and, in some years, more tree and woody residue has been generated from urban areas than was harvested from national forests. This waste is costly for businesses that have to pay for its collection and disposal.

Post-industrial Baltimore is a particularly relevant base for the scheme, as it is estimated that there are 16,000 empty properties, with some 4,000 of them marked for demolition. Some estimates even put the number of vacant lots in the city at well over 40,000.

By reclaiming wood, the Baltimore Wood Project says it can reduce waste; provide green materials for construction, furniture making and other sectors; and help restore and reclaim neighborhoods.

Wood reclaimed and recycled by the project can be used for sustainable building, furniture and energy, among other uses. The project is intended to help the city achieve its aim of a sustainable future and serve as a model for creating a circular, self-reinforcing economy in urban areas.

Globally, it is estimated that transitioning to a circular economy model could generate $4.5 trillion in benefits by 2030.

The World Economic Forum is supporting moves towards creating a worldwide circular economy through collaboration on The Circulars Accelerator 2021 program.

Growing a waste and recycling business today is often as much about having the drive and capacity to acquire other companies as it is being able to run a successful operation.

Thankfully for Lakeshore Recycling Systems, rebranded to LRS in April, CEO Alan Handley is well-versed in both disciplines.

Handley, who has a bachelor’s degree in accounting and an MBA from Northwestern’s Kellogg School of Management, held leadership positions at Heller Financial, Price Waterhouse, the United States Marine Corps, Mesirow Financial/KPMG, and Aldridge Group before joining LRS as CFO in 2012.

Upon joining the company, Handley played a pivotal role in the vertical integration between two Chicagoland companies, Recycling Systems Inc. and Lakeshore Waste Services, which were in the process of merging into Lakeshore Recycling Systems at the time.

Handley says that this integration established the foundation from which the company would blossom.

“The merger of these two important players in the Chicago waste and recycling market combined a largely commercial hauling operation with one of the largest MRF/transfer stations in the Midwest,” he says. “We were generating approximately $48 million in 2012, with a few hundred employees and two operating sites.”

Following the merger, LRS worked to strategically acquire transfer assets and commercial operations throughout the Chicagoland market, including recycling operations, C&D sites and transfer stations. The company then began branching out to nearby states.

“Our expansion strategy continues to involve integrating and leveraging sites as close to our work as possible, enabling a dynamic, fluid hub-and-spoke approach to business development,” Handley says. “We complement our MRFs, depots and recycling facilities with our ability to provide residential, commercial and temporary services such as portable restrooms and street sweeping.”

Since 2012, LRS has closed more than 25 strategic acquisitions in five states, including Illinois, Iowa, Wisconsin, Indiana and Michigan. These deals have helped propel LRS to become the largest independent waste, recycling and portable services provider in the Midwest, generating approximately $300 million in revenue annually. The company boasts an employee base of 1,200 and an asset base of 26 facilities, including landfill assets in the Quad Cities market of Iowa and Illinois.

An independent voice

As Handley explains it, LRS’s M&A pursuits have aligned with the company’s goal to first strengthen its presence in its Chicagoland home market, and second, to branch out to nearby markets ripe with opportunity.

“Our strategy has focused on first building a large defensible perimeter around the city with strategic operations, sales and marketing assets from which we could build and grow organically,” he says. “We also have grown the residential and commercial lines of our businesses, and our temporary services divisions, including roll-off, portable restrooms and street sweeping. At the same time, we identified the need to be more geographically diversified.”

In identifying some of the most transformative deals the company has made, Handley points to its acquisition of the Eco Hill Landfill in Atkinson, Illinois. The deal, Handley says, “provided control of our own destiny” since prior to the acquisition, all of the landfills surrounding the company’s service areas were controlled by large, publicly traded waste competitors.

Handley says that as LRS grew, not having a landfill asset under its belt began to create friction for the company. By acquiring the landfill, which has more than 20 years of service life left, LRS can better serve its customers’ disposal needs while allowing it to go head-to-head with its competitors. While the landfill allows for more economical disposal for the company, Handley is quick to say that having it as an asset hasn’t changed the company’s recycle-first approach to incoming material.

“I’d say the Atkinson landfill acquisition was a transformational event in the history of the company. Two years ago, the Eco Hill Landfill was essentially dormant and today, by all accounts, it is the third largest landfill in Illinois. The interesting fact with Eco Hill is that it did nothing to change our core recycling orientation,” Handley says. “Our DNA in that regard is fully intact. We continue to recycle as much material today as we were two and three years ago, the only difference today is that material and residue we are not able to recycle is internalized within the company instead of being sent to our competitors.”

To help the company market its incoming C&D materials, Handley says LRS has been working to create opportunities through innovation. From a commodity standpoint, Handley says LRS is constantly scouring the market for alternative outlets, as well as alternative end products.

“Whether that means shifting from current production outlets or being innovative on how to divert products from the waste stream, we push ourselves to optimize diversion and repurposing,” he says. “For example, instead of grinding or shredding material for a one-time use application, we seek ways to get the whole product back out into the marketplace, continuing the life of that product, and extending the life cycle of that stream. Our goal is to remain nimble and innovative, while maintaining our high sustainability standards.”

Specific to growing its C&D operations, Handley acknowledges several recent deals that have been especially impactful, including its 2017 acquisition of West Chicago-based K. Hoving Companies and the acquisition of Royal Container in Madison, Wisconsin in 2018. In December 2020, the company announced it acquired Appleton, Wisconsin-based Landfill Reduction and Recycling Inc., and in 2021, the company followed that up with what Handley calls LRS’s “largest acquisition to date” when it bought Maywood, Illinois-based Roy Strom Companies.

When the deal was announced in the first quarter, LRS said Roy Strom was “among the most respected independent waste haulers in the Chicagoland market” and allowed the company to add “an extensive, long-tenured residential and commercial customer base, well-positioned single-stream and C&D recycling operations, and a strategically located transfer facility in Maywood that serves many local operators” to its portfolio.

In looking at the company’s recent string of acquisitions, Handley says the deals have been important for not only helping the company extend its reach, but also ensuring an independent waste option for local customers.

“From a big picture perspective, we are generating sorely needed competition as one of the more dominant independent waste and recycling companies in the United States,” he says.

The company’s status as an independent has also helped grease the skids of prospective M&A deals with companies that are looking to preserve their culture and employee base, Handley says.

“We have a demographic shift taking place in the United States for aging family businesses. LRS provides a unique alternative in that we are able to compete on top-line price with our larger competitors, but we are also able to preserve the culture, best practices and employee base, including drivers, that made these companies so successful through the years,” he says.

Dealing with changes

As with virtually every other waste and recycling company across the country, the past year has forced LRS to deal with rapid changes brought about by COVID-19.

On the residential front, Handley says that the company’s incoming volumes have been up significantly with more individuals staying home. Conversely, commercial volumes have dropped precipitously.

Regarding C&D, Handley says volumes have been up as many schools, hospitals, contractors and homeowners undertook large renovation projects during the pandemic. In addition to these volumes, Handley says that LRS’s portable services division helped support the company over the last 12-plus months.

“Volume levels in roll-off and through the MRFs and recycling centers were all up, and that led to better-than-expected results in 2020,” he says. “Beyond that, I think the main takeaway from the pandemic is that our portable services division—particularly portable restrooms, hand sanitizer and handwashing stations—were in very high demand. Large construction companies and other companies in industries more exposed to maintaining high sanitary requirements were prime customers for us during the pandemic.”

For the rest of 2021, Handley says low interest rates, pent-up demand, and movement away from urban residential and business spaces to suburban community development should support sustained construction activity.

Looking forward to 2022, Handley says there are a number of variables that could affect the C&D market.

“Next year will be interesting on the C&D front—much of the growth appears to hinge on Congress and its ability to pass an infrastructure bill to improve the condition of our roads, bridges, ports, airports and rail lines,” Handley says. “What will the short-term and long-term interest rates look like? Do people move back into the city or is there a permanent, or at least a semi-permanent, move out to the suburbs and away from the city? I don’t think anybody can answer those questions just yet, but when I discuss this with my colleagues in the construction world, much of the conversation centers on interest rates, backlog, site locations and the general level of optimism in the marketplace.”

Despite some uncertainty, Handley says LRS is expecting incremental volume growth for 2021 and 2022, a rebalancing of residential and commercial volumes, as well as the continued growth of its customer base.

In April, Chicago’s Department of Streets and Sanitation (DSS) announced LRS won a 3-year contract to provide residential recycling collection services in four of Chicago’s six recycling regions beginning this June.

DSS, which noted the contract is for $79.6 million, cited LRS’s investments in recycling infrastructure as one of the factors that played a role in the company being awarded the contract. In a release, DSS notes that LRS has “more recycling assets than any other company in the Chicago area, including a state-of-the-art single-stream recycling facility that can sort cardboard, mixed paper, glass, steel, other metals and plastics.”

A deeper connection

When asked what has helped propel LRS to where it is today, Handley mentions the word heritage. He says the company was founded by entrepreneurs who remain actively involved in the business, and this ethos has continued even amid aggressive M&A pursuits. He notes that even though the company has acquired more than two dozen independent waste, recycling and temporary services companies over the past eight years, the majority of these company founders and executives have stayed on to serve in roles critical to LRS’s daily operations.

According to Handley, this retention has manifested in a deeper connection with the communities the company serves.

“If you look at our explosive growth through the years, you will find one factor that sets us apart is the cohesiveness of our team,” he says. “We have a tremendous sense of comradery at every level of the organization, a great sense of community and family, and a real connection to the communities we serve. From maintenance technicians and drivers to senior-level managers and officers, [we have employees] who live and raise families in those communities. We view our employees and the communities we serve to be symbiotic—as a company, we have a vested interest and responsibility in seeing them thrive.”

It’s this commitment to the company’s personnel and communities that Handley says gives LRS a leg up when it comes to future opportunities.

“I always say that anyone can buy a truck or a route, but the real work is in sustaining those routes with great people who operate within a great culture. That is our daily focus as we think about scaling our growth,” Handley says.

While Handley has helped fuel LRS’s rapid expansion over the last eight years, he says that opportunities still abound in the Midwest market.

“The recent exit of Advanced Disposal creates a void in the greater Midwest that is perfectly set up for LRS to take advantage of,” Handley concludes. “These markets now have large exposed gaps in competition, product offerings and customer service. Our platform of services coupled with our best-in-class customer experience is destined to be delivered to these markets via organic expansion as well as through strategic acquisition. Our aggressive posture, customer-first focus and unparalleled devotion to recycling will propel us into the next chapters of a story still being written. It’s not unreasonable to believe we may very well double in the next year to 18 months and be more prominent than ever in the markets we serve.”

The author is the editor of C&DR magazine and can be reached at aredling@gie.net.