What path will Waste Management take with Jim Fish as the new CEO?
Waste Management, Inc. announced November 10, 2016 James (Jim) C. Fish, Jr. as the Company’s President and Chief Executive Officer. Jim Fish will replace David Steiner as CEO. David Steiner has served as CEO since 2004 and remains on the Board of Directors with recently added Jim Fish.
Waste Management – Growth, Pricing, Sustainability and Technological Advancements
Will Waste Management continue down the road as the leader in trash collection and recycling with its current pricing? From our take, doubtful. Waste Management with direction from David Steiner over the past several years has worked on the implementation of premium pricing. WM shares have steadily increased over the years with volume shrinking and revenue growing while achieving an industry share price that has the earliest of investors looking for that beech front condo. What does this mean? in short, customers have been leaving WM for a cheaper alternative while loyal customers have chosen to stay the course. Sure WM is a Fortune 500 company but what separates it from the competition while justifying the premium price? A few ways WM is leading the competition is the use of the (OBU) On Board Computing System and the use of CNG trash trucks.
So what can the tech savoy OBU do for WM?
- Cut idle time
- increase efficiency
- track equipment
- Confirms if driver has actually showed up at location if there is a dispute
- Will give customer an ETA
- Provides better info to WM to optimize pricing
So what is a CNG trash truck you may ask? CNG is short for compressed natural gas. Waste Management operates several CNG fueling stations throughout the USA and Canada. How does this help WM?
- Nearly every new truck purchase each year will be CNG trucks.
- For every diesal trash truck that is switched to a CNG truck thousands of gallons of diesel fuel are saved per year.
- Reduces CO2 emissions by over 22 metric tons per year, per truck.
- Trash trucks powered by CNG emit nearly zero particulate emissions,
- And the #1 reason residents at 3 AM are going to love them, they are a lot quieter than diesel trucks.
So to sum it up we’ll probably see Waste Management working very hard on acquisitions, technology improvements and increasing landfill volumes. We think when it comes to pricing expect to see a lot more competitive pricing that will force trash to under performing landfills as well as fuel what is sure to be an industry leader in trash tech for the foreseeable future.