A Historical Perspective
Waste management has long been an industry resistant to rapid change, operating decades behind technological advancements. This systemic lag has significant environmental and economic implications, creating a critical need for modernization. You might ask “why is this?”
The Inertia of Change
The waste management industry's sluggishness stems from several key factors:
1. Operational Control: Established players have entrenched systems that resist disruption. These deeply rooted operational models create significant barriers to entry for new technologies, as existing infrastructure and long-standing processes make rapid transformation challenging and expensive. I recall the first time attempting to convince vendors that it was ok to install a sensor on a dumpster. After ten calls, only 1 agreed to do it, and only because we already had a great relationship.
2. Profit Motivation: Existing methods remain profitable, reducing incentives for innovation. The industry's traditional revenue models prioritize maintaining current systems over investing in potentially risky technological upgrades, creating a conservative approach to change. Don’t get me wrong, I like a buck as much as the next person, but sometimes focusing on the dollar in your hand today prevents getting hundreds of dollars tomorrow or worse, causes the loss of your client. A time comes to mind when a client wanted to install sensors on all his dumpsters as well as monitors on all his compactors. This didn’t benefit the hauler, so the client ended up jumping into the arms of a broker to get the job done.
3. Brokerage Disruption: Emerging intermediaries have begun to challenge traditional models, but progress remains limited. These new players introduce technological solutions that streamline waste management processes, creating pressure for incremental but meaningful improvements in the industry's approach. Having worked on this side of the industry for the better part of two decades, I understand how this impacted previously easy profits for waste haulers. While some haulers embraced the process, others ran from it. It wasn’t until WM lost nearly $500M in Revenue to Oakleaf that they decided to buy them! WM has turned that acquisition into a national accounts division with nearly $5B in revenue in the last few years.
The Rise of Technological Integration
Technological Transformation of Fleet and Operations
The modern waste management fleet is no longer just a collection of trucks moving from point A to point B. It's becoming a sophisticated network of smart technologies that are reshaping how we collect, track, and process waste. Three key areas are driving this transformation: truck modernization, software and IoT evolution, and artificial intelligence applications.
Truck Modernization: More Than Just Wheels and Engines
Hey, remember when garbage trucks were just big, noisy vehicles that picked up trash? Those days are gone. Today's waste management vehicles are high-tech machines packed with smart technologies. GPS tracking has turned these trucks into real-time data centers on wheels. Imagine a truck that can automatically optimize its route, reducing fuel consumption and cutting down on unnecessary miles. Advanced routing systems don't just move trash—they strategically plan collection paths to minimize environmental impact and operational costs.
Software and IoT Evolution: The Invisible Brain of Waste Management
Think of IoT as the nervous system of modern waste management. Sensors are everywhere now—in bins, on trucks, throughout facilities. These aren't just passive collectors; they're active information generators. Real-time tracking means municipalities can now know exactly how full a dumpster is, when it needs to be collected, and even predict waste generation patterns. It's like giving waste management a crystal ball, allowing for unprecedented levels of efficiency and planning.
Artificial Intelligence Applications: The Smart Revolution
AI is transforming waste management from a reactive to a predictive industry. Forget manual route planning and guesswork—AI algorithms now predict exactly when equipment needs maintenance before it breaks down. These systems can optimize collection routes in real-time, considering traffic, bin fullness, and even weather conditions. Waste sorting has become a high-tech marvel, with AI-powered systems that can identify and separate materials with accuracy that far surpasses human capabilities.
These technological advancements are not just cool innovations—they are fundamentally reshaping how we approach waste management, making it more efficient, sustainable, and intelligent.
While many of these applications improve the operational functionality of day-to-day operations, this is not always beneficial to you, the customer. Specifically, An AI application is used to assess photographs on whether a given dumpster should be charged an overage fee. While this would appear innocuous at first, the reality is that if you set the parameters to indicate that if the dumpster is open and the lid not on top, and even a scrap of material is above the line of the bin, it is considered an overage.
This benefits WM and other large vendors that have systematized this process in that now, they can consistently bill for overages without having to depend on interpretation. The main issue, however, is this system can be abused as noted above, so that if you do not know that if you just closed your lid, you would not get an overage charge, you can end up paying up to 50% more than your base service. Overage charges can range in price from $25 to $125 or more per instance.
I am not saying these charges will not incentivize users to do a better job to avoid fees, but rather that it is easy to abuse such a system, with the burden being on the customer.
In most cases, especially in the commercial real estate space, all it takes is one person to leave the top of the dumpster open to incur this sort of charge. It is also unlikely that a tenant will close the lid on the dumpster because they care about the cost of trash, causing more work for property managers and their maintenance staff to perform this function.
Yes, locks are possible, and illegal dumping will always be an issue, however the AI system for judging whether a dumpster is overfilled or not clearly creates a large upside for the hauling company, to the detriment of the customer.
Beyond Ground Disposal: A New Waste Paradigm
Reimagining Waste as a Resource
The traditional "take, make, dispose" model is rapidly becoming obsolete. Waste is no longer just something to get rid of—it is a potential goldmine of resources, economic opportunities, and environmental solutions. Three critical approaches are driving this transformation: material mining, circular economy principles, and evolving regulatory landscapes.
Material Mining: Turning Trash into Treasure
Waste is not waste anymore—it is a raw material waiting to be discovered. Modern technologies can now extract valuable commodities from what we used to throw away. Electronic waste, for instance, contains precious metals like gold, silver, and rare earth elements that can be recovered and reused. Imagine a world where your old smartphone does not just end up in a landfill but becomes a source of valuable materials for other technologies.
Circular Economy Principles: Closing the Loop
The circular economy is more than a buzzword—it is a radical rethinking of how we use resources. Instead of the traditional linear model of consumption, we are moving towards a system where products are designed to be reused, repaired, and recycled. This approach does not just reduce waste; it creates new economic models where waste becomes a valuable input for new production cycles. It is about creating closed-loop systems that minimize environmental impact while maximizing resource efficiency.
Regulatory Changes: Forcing Innovation
Governments worldwide are implementing stricter regulations that push industries towards more sustainable practices. Landfill restrictions, mandatory recycling rates, and extended producer responsibility laws are no longer rare exceptions—they are becoming the norm. These regulations are not just bureaucratic hurdles; they are powerful drivers of innovation, compelling companies to develop more sustainable waste management and production strategies.
This reimagining of waste is not just an environmental necessity—it is becoming a significant economic opportunity, transforming how we think about resources, production, and sustainability.
Take California for example, it passed a law requiring the implementation of food waste recycling as a mandatory requirement for the entire state. Yes, it took 10 years, yes it was a mess at first and severely limited, but as economic opportunities arose from it, it grew. While not yet mature, in 10 years the program has become the largest of its kind in the US and has arguably moved more material out of the landfill than any other program since recycling first started.
Some of the detractions of that growth has been the cost of the program, often subsidized at taxpayer expense. 10 years is a long time to wait for maturity of a program but getting that many people to do the work takes time. In the next 10 years as more competition enters the market, we will see economies of scale start to reduce overall costs.
One could argue that it was painful. It was. Yet now that we are here, the impact has helped move the industry in a direction that reduces the need for additional landfills, shipping material out of state at additional cost, and created an entire new market for businesses that barely existed previously. That is the point of government, to do things that the natural economy cannot, advancing our capabilities to do more, so that future generations have a better place to live in than we did.
Technical Renovations
Technological Advancements in Waste Processing
The waste processing landscape is undergoing a technological revolution, transforming how we handle and sort materials. Two key areas are driving this change: the automation of mechanical segregation and the integration of advanced operational technologies.
Automation of Mechanical Segregation: The Rise of Smart Sorting
Gone are the days of manual sorting and high-error rates. Today's waste processing facilities are becoming high-tech sorting centers powered by artificial intelligence and robotics. AI-powered systems can now identify and separate materials with near-perfect precision, distinguishing between different types of plastics, metals, and other recyclables faster than any human could. Robotic arms equipped with advanced sensors can pick and sort materials at incredible speeds, dramatically increasing recycling efficiency and reducing contamination.
Look at this sorting machine and how effective it is at sorting out various materials from a moving conveyor belt. The need for these sorts of devices has been long standing. Previously people would have to sort through the material. This is the kind of work that is a poster child for a TV show about jobs nobody wants to do. With that said, the consistency generated by these machines improves the quality of the end product: recyclables. These materials need to be clean to ship internationally...fairly sure we all remember Operation National Sword, where the Chinese tightened requirements for recyclables to 0.5% contamination, because previously collected material rarely sorted out contaminates from the single stream process, resulting in a massive multi-year shake up in recycling commodity prices that are still recovering.
These devices help provide a quality product with greater value, letting us humans work at jobs that do not involve sorting through the trash.
Operational Technology: Bringing Intelligence to Waste Management
Technology is streamlining every aspect of waste management operations. Chatbots now handle customer service inquiries, providing instant support and reducing administrative overhead. Automated invoicing systems eliminate manual paperwork, reducing errors and increasing financial efficiency. Digital workflow management tools give managers real-time insights into operations, enabling data-driven decisions that optimize everything from collection routes to processing techniques.
These technological advancements are not just improving efficiency—they are fundamentally reimagining what is possible in waste processing, making the entire system smarter, faster, and more sustainable.
The problem is that they still have not advanced enough to sound human. The other problem is that we are concerned as people about computers who sound human. Industries are moving at a breakneck pace to develop AI support around automating as many high touch roles as possible.
At the same time, this is moving the workforce to a higher level of skill to get jobs. What will happen to the workforce as this process occurs over the next two years remains to be seen. What we do know is that it will impact more people as time goes on. Who exactly? Well, some folks feel that these groups will be impacted the most.
It remains to be seen what the exact impact will be, but i think we can all agree that there will be an impact and it will be significant. The changes harken back to science fiction books talking about the future. For good or bad, change is coming.
Challenges and Opportunities
The waste industry stands at a critical crossroads, facing significant barriers to transformation while simultaneously experiencing unprecedented technological potential. The industry struggles with deep-rooted challenges that slow innovation and progress.
Industry Inertia: A Technological Bottleneck
The waste sector remains frustratingly behind the technological curve compared with many industries. Established players resist change, clinging to outdated systems that prioritize short-term profits over long-term innovation. Expensive infrastructure investments, complex regulatory environments, and a risk-averse culture create significant barriers to adopting cutting-edge technologies.
However, with the onset of AI and the benefit to companies bottom lines with its adoption, the motivation to change how companies operate in this industry is rising fast. Those who reach out and grab the opportunity quickly are benefiting tremendously, while those that do not will be left in the dust.
Economic and Operational Constraints
Financial limitations and operational complexities make technological transformation challenging. Many companies lack the capital to invest in advanced systems, while existing operational models resist disruption. The excessive cost of implementing new technologies often outweighs perceived short-term benefits, creating a catch-22 for innovation.
In the case of AI, we are finding that the cost to develop is getting cheaper and easier than ever. What used to be a major challenge historically, is now an easy win. In addition, the populace, through movies and social media is gaining more comfort with AI generated things in general, reducing some of the concerns people have about not talking to a person. While it will still be some time before this hurdle is overcome, that time has shortened, even from a year ago.
These two factors together make for a winning case to push through this bottleneck and make it more likely that the industry will advance quickly. You do not have to have deep pockets to make these changes and as a result, the hope is that more competition will appear, helping drive down some of the cost for the consumer.
Looking Forward
The future of waste management demands bold, transformative approaches that embrace technological innovation and sustainability.
Technological Integration
Success requires rapid adoption of advanced technologies. AI, IoT, and machine learning must become core components of waste management strategies. Companies that fail to innovate or adopt these technologies risk becoming obsolete in an increasingly sophisticated industry.
Sustainable Resource Management
The future is circular—treating waste as a valuable resource rather than just a problem to dispose of is the name of the game. This means developing closed-loop systems, investing in advanced recycling technologies, and reimagining waste as a potential economic opportunity. It remains to be seen whether regulations will drive this completely across the line in the next ten years, but the movement in that direction is gaining momentum both globally and domestically.
Cultural and Operational Transformation
Beyond technology, the waste industry needs a fundamental mindset shift. This involves breaking down organizational silos, embracing data-driven decision-making, and creating more agile, innovative organizational structures. Figuring out how to automate activities that do not require a human vs those that should absolutely be handled by humans will be the challenge for the foreseeable future.
In Conclusion
The waste management industry truly stands at a critical juncture. Technological adoption is no longer an optional but rather an essential requirement for each company’s future success.
Survival in the waste industry will depend on each company’s ability to innovate, adapt, and transform quickly. Those who embrace technological change will lead the way in creating more sustainable, efficient waste management solutions at a higher profit margin. Those who do not...well you get my point.
What Tools Will You Need To Be Successful?
The first tool in your toolbox will be a software designed to manage waste and recycling. The waste industry is a unique one with its own quirks and needs. You cannot just grab any old software off the shelf, or heaven forbid use an excel spreadsheet or access database (you know who you are).
There are a couple of software companies that have a waste focus, but by far the best I have seen is the Discovery platform.
Discovery Invoice Automation
The Discovery platform handles all aspects of the business including:
- Invoice Collection & Auditing
- Client, Location, Service Setup & Management
- Vendor Setup & Management
- Call Center Ticketing and Issue Resolution
- Billing & Profitability
- General and Sustainability/ESG Reporting
They even have a professional services team that can do this work for you if you are just starting out and need experienced industry people or need short-term support when your business experiences an unexpected but welcome growth spurt.
This software is designed to enable a broker to run their business from the ground up. This video walks you through the software and it shows how it makes managing thousands of invoices a snap. Your entire team can manage your clients, pay your vendors, and bill your clients while having access to reports that highlight sustainability/ESG goals that clients always seem to want, but are hard to produce consistently.
