The spread of COVID-19 is becoming more and more serious, at least governments and municipalities across the globe are taking strict measures to keep the virus contained. Due to the nature of the virus, containment dictates that all public gatherings should be limited or canceled altogether, especially if the participants come from multiple and widespread locations.
Temporary closings for macro gathering places like Disney amusement parks and airports soon trickled down to micro institutions like schools, restaurants, churches and businesses, many of whom are supporting employees working temporarily from home. The economic effects of this quarantine are certain and present, and many will suffer an economic crisis.
The Market in General
Industry insights have shed light on the effects of the viral pandemic on the public waste industry and the market. Parents will have to take paid or unpaid time off work, teachers are homebound. So many other professions and industries are affected by the growing number of closings. Time will tell if these measures were appropriate or extreme, but regardless of that answer, people still need to dispose of their waste.
A significant number of industries, such as travel and leisure, are suffering devastating losses, some by more than fifty percent. It is too soon to determine if a recession is on the horizon, but the market will continue to fluctuate and falter until the spread of the virus is successfully contained. Until then, it is a waiting game to see the fruits of these labors of closings and isolation.
The Public Waste Industry and the Market
Though the COVID-19 situation is unlikely to affect pricing, roughly one-fifth of the public waste industry will be impacted. Special waste, which is more project and demand-based, is one of these areas. The remaining four-fifths of the industry is in a good position as it deals with residential and small business waste collection.
Stocks are affected, but not enough to influence any real change. Waste stocks typically maintain at near steady while most of the market fluctuates according to external and sometimes internal forces. Waste stocks may have gone down since COVID-19 began to spread, but they are still considered a BUY on the market.
It's Not All Bad
Although the environment contains COVID-19, the quarantine has decreased human activity, which has decreased the amount of pollutants. Waste Management has even limited the number of overnight travel hours for employees.
We are available to help you be proactive in your recycling practices.