If you look at successful waste management companies across North America, you’ll notice that corporate growth is often born out of the right leaders pursuing the right opportunities at the right time.

Such were the circumstances surrounding the founding and subsequent expansion of Houston-based WCA Waste Corp.

WCA was formed in 2000 by former Browning-Ferris Industries founder Tom Fatjo, who made the strategic decision to acquire assets divested by Houston-based Waste Management following its merger with USA Waste. The company went public in 2004 and Fatjo ran it as CEO until it was taken private in 2012 by New York-based Macquarie Infrastructure and Real Assets. Through a combination of organic growth in key markets and acquisition activity, WCA has expanded its integrated non-hazardous solid waste collection and disposal business in 11 states across the Southeast and Midwest. The company currently owns 21 landfills, 28 transfer stations, 33 hauling operations and two material recovery facilities. Today, WCA’s 1,700 employees serve more than 650,000 customers across 600 routes in 15 markets.

Sensible sustainability

Looking for an established waste industry veteran to take the reins of the company, WCA tabbed Bill Caesar as its new CEO in 2014.

Caesar joined the company after serving as Waste Management’s chief strategy officer and president of the company’s Recycling and Organic Growth Group divisions. Before his time with Waste Management, Caesar had a 13-year tenure at the New York-based management consulting firm McKinsey & Company, where he advised clients across a broad range of industries, including waste management, on corporate strategy and growth initiatives.

It was these experiences that gave Caesar keen insight into the obstacles and opportunities waste management companies faced as he took over WCA.

Residential recycling and significant elements of commercial recycling are clearly not working today in the U.S.” -WCA CEO Bill Caesar

“McKinsey gave me the opportunity to work with companies across a broad range of sectors, including the waste sector, which helped me develop solutions for some of the most important challenges they faced,” he says. “I learned how to quickly identify the key performance drivers within an industry, to assess and quantify opportunities, and to communicate strategies and plans that would create value. An important part of that learning process was how to develop and manage people. During my time at Waste Management, my knowledge of the waste and recycling industry expanded significantly, and I learned a great deal about managing large enterprises. Waste Management also gave me my first opportunity to own a P&L (profit and loss) when I was given the responsibility of running WM Recycling in 2012. As the CEO of WCA since 2014, I have leaned heavily on my prior experiences to manage our business.”

Caesar’s experience overseeing recycling for Waste Management has colored his current perception of the market’s viability. According to Caesar, the low revenues generated from recycling have made collection an unsustainable practice with the current pricing in place.

“Residential recycling and significant elements of commercial recycling are clearly not working today in the U.S.,” he says. “By ‘not working,’ I mean that the business of recycling is not economically sustainable in its current configuration—there is not enough revenue generated from the sale of commodities or from tip fees to cover the costs of managing the collection and processing of recyclables and to invest in future plants and equipment. The business model where the value of recycled commodities more than covered the cost of collecting and sorting recyclables no longer exists in many places in the U.S.”

Although Caesar acknowledges that the costs of operating recycling programs are being shared more equitably with communities and municipal authorities today than in years past, the costs of contamination and dwindling end markets have continued to suppress recycling viability for many waste companies.

Presenting at this year’s Southeast Recycling Conference (SERC) in Orlando, Florida, Caesar called on industry participants—including haulers, processors, consumer packaged goods companies, packaging manufacturers, local governments and financial investors—to work together to address the unsustainability of the current recycling business model.

“I do not think that waste and recycling companies can solve these problems on their own,” Caesar says, elaborating on his SERC comments. “The waste and recycling companies are more than interested parties in this discussion, but without a broader discussion and without the participation of the other constituencies, I do not expect a long-term viable solution to emerge. … Despite WCA being a very small player in the recycling industry, we can have an impact on the evolution of recycling in the markets where we are engaged in business. We should also have a seat at the table of broader discussions, but we need the larger players—both in the recycling business as well as the packaging industry—to get behind sustainable change.”

Caesar says that a fundamental reevaluation of natural resource use is needed to move the ball forward in terms of the value that can be derived from recycling.

“We need to have a well-functioning recycling industry if we want to be thoughtful stewards of our environment,” he says. “The burden for ‘fixing’ recycling does not rest solely with waste and recycling companies. It rests with society at large. We collectively have to decide that we value the resources we have on this planet, and then we have to price them accordingly, including for things like carbon and water. If there isn’t a value placed on these elements, then we will make rational, but poor, decisions about how to use, reuse or expend them.”

Environmental considerations affect not just recycling, but the overall way waste is handled. Caesar says that until the current pricing structure of landfilling changes, it will be difficult for more conservation-based waste management practices to gain favor amongst haulers.

“Disposal capacity is an issue for every integrated solid waste company, including WCA. For the industry, it is a bigger issue in some regions than it is in others. As disposal capacity shrinks and disposal pricing climbs (as it is in the Northeast), the economic rationality for all sorts of recovery and reuse options improves,” Caesar says. “Without high disposal pricing, it is hard to make economic justifications for disposal alternatives, like conversion technologies or efforts to build circular economies within different industries. The challenge for WCA and for the entire industry will be to determine how and when to leverage the profits gained from the consumption of disposal assets into new assets that will replace or supplement traditional forms of disposal.”

With an eye on advancing the sustainability of waste management, WCA has put a structure in place to identify and execute opportunities within the organization. Caesar says that WCA established its Sustainability Committee in 2018, which reviews potential sustainability-focused proposals of interest and tracks the company’s ongoing efforts. Caesar says that WCA looks for projects that are both good for the environment and good for the bottom line in evaluating what to pursue.

“With every one of these initiatives, we have a dual-track approach,” he says. “The effort must reduce our impact on the environment and must make economic sense. We look at the investment costs, the environmental benefit and the economic value of each initiative. This allows us to prioritize our initiatives. The good news is that there are many ways to invest in sustainable projects that also generate value for our business.”

Caesar says that WCA has five or six active initiatives ongoing in any given quarter, with new projects being considered throughout the year. In addition to the company’s pursuit of alternative fuel technologies (roughly 20 percent of WCA’s 950 collection vehicles are powered by CNG), Caesar singled out WCA’s leachate management strategy in one of its Houston landfills as an example of how the company is pushing the boundaries to come up with environmentally friendly solutions for its waste management challenges.

“We have invested in a phytoremediation project at our large landfill outside of Houston,” he says. “As is the case with many landfills located in geographies that receive a lot of rain, we generate significant quantities of leachate, which are costly to treat. This project uses a particularly hardy variety of grass that absorbs leachate and effectively processes it as the plant grows. The cost of our investment in this phyto-field will be more than offset by a reduction in leachate management costs.”

Growing the WCA footprint

Caesar says that WCA is always looking for opportunities to grow, and last year was no different. The company closed a total of five acquisitions in 2018 and invested upwards of $100 million in those deals. On March 1, the company made news again when it announced it had acquired Kentucky-based D&D Sanitation and Texas-based Outreach Disposal. When considering acquisition opportunities, Caesar says WCA looks for smaller, well-run companies already doing business within the company’s geographic area.

“Our philosophy regarding acquisitions is fairly simple: We think that we can operate smaller companies more efficiently within our larger business and generate synergy value,” Caesar says. “Value can come from things like standardized operating and management practices, back-office efficiencies or lower costs of capital. ... We are always looking for additional acquisition opportunities and see [them] as one of our primary value creation levers.”

Because of the company’s size and profile, Caesar says WCA can make more strategic moves than other waste companies might be able to.

“WCA is of a unique size and structure in the waste industry,” Caesar says. “We have all the professionalism and assets of one of the publicly traded waste companies, but we are much smaller, and our organization is much flatter. There are only four people between me and a driver, for instance, compared to seven or eight at one of the bigger companies. We can make decisions quickly and can swiftly implement those decisions. We also benefit from being a private company that is not driven by a quarterly cycle of reporting our financial results publicly. Our results are reported to our board on the same calendar cycle, but we can take actions that generate long-term benefits for the company (like making a number of acquisitions), even if they put a squeeze on expected results in the short term.”

As the company has grown, Caesar says WCA has faced the familiar challenge of finding qualified fleet technicians and drivers in areas where it has looked to expand. He says WCA has adjusted its hiring practices, onboarding strategy, front-line management training and compensation and benefits programs over the past year to address these issues.

“Because there is no single lever that will address our [hiring] challenge, WCA has invested in a holistic approach that demonstrates to our people that we care about them, we want them to succeed, and we are going to give them the tools they need to succeed. The entire leadership team of the company owns this approach and is committed to making it work,” he says.

In addition to the company’s dexterity, it’s this focus on bringing in the right people and giving them the tools to succeed that Caesar says has helped WCA become one of the biggest waste management companies in the Southeast and Midwest.

“What really sets us apart is our people,” he says. “There have been a number of occasions—the aftermath of Hurricane Harvey, for example—where our people pulled together to not only help each other, but also to help the communities where we live. We also have a terrific management team that enjoys working with each other. We work hard, but we have a true sense of comradery and are completely aligned on our goals and how to achieve those goals. I am very proud of the company we have built and the people who work for WCA.”

The author is the editor for Waste Today magazine and can be contacted at aredling@gie.net.

While the labor shortage remains a common issue for the waste industry, it’s not the only sector of employment under pressure in the business. As executives age out of the space, a smaller workforce has resulted in less qualified candidates available to step up and fill the shoes of their superiors.

Building up and discovering candidates in the talent pool has been a mission of Tyler Frisbie, the managing partner of Global Recruiters of McKinney, Texas. For the past seven years, Frisbie has specialized in placing sales and operational executives in the waste and recycling industry throughout the U.S.

Waste Today talked with Frisbie about the newer generation of executives, how to attract them and the role they have in mitigating the labor shortage downstream.

Waste Today (WT): Can you tell me about your recruiting and placement process?

Tyler Frisbie (TF): We are typically engaged to confidentially replace under-performing executives within the environmental industry. We spend a lot of time up front learning exactly what our clients’ needs are, which expedites the recruiting process and minimizes the back-and-forth. Understanding the company culture, its challenges and its needed growth, both in the short-term and long-term, are some critical pieces we need to know early in the recruitment process.

My propriety database is where I first turn. I have developed and maintained this database one conversation at a time over the last 20 years. If you only rely on external websites like LinkedIn, you can waste a lot of time. The best talent is usually doing a great job where they are and are frequently not on LinkedIn.

WT: Is there any piece companies tend to overlook when building their executive teams?

TF: Start at the top. Some people rush to fill the vice president or general manager position(s), but it’s very important to look at the top first. If you don’t have the right leaders at the top, then you won’t attract the best VP or GM candidates.

Another overlooked area is the executives who are leading labor—executives who would take a closer look at improving the life of a laborer.

WT: What qualifications are employers looking for in executives? Is diversity a priority?

TF: It depends on the role, and the companies vary so much as far as what they need. Multitasking, doing more with less resources, being results-driven, getting along with others and having high integrity are always at the top of the list.

It is critical to have a strong HR partner in the business to ensure the right succession planning and diversification to drive positive change. HR needs to be included in the overall strategy of the business to drive sustainable growth.

WT: Is it more common to hire these positions from inside or outside the company?

TF: It needs to be a combination of both. Employees will start to question their long-term growth if the company only hires key positions from outside. It’s important for companies to offer internal opportunities for advancement, but it’s also healthy to bring in outside talent as appropriate.

WT: Do qualified candidates ever come from different industries?

TF: Yes, but it depends upon on the company’s preference and the role. Some firms are open to it and others aren’t. I’ve seen the transportation industry be a good parallel industry to find candidates.

WT: Are there any executive hiring trends in the industry that you can point to?

TF: Exposing the candidate to a variety of people and not just the leadership team is one trend. Hiring with stretch goals is also becoming more common. If you are looking for a VP, for example, the best candidate may not currently be a VP, but they are ready for that opportunity.

WT: What are executive-level candidates typically looking for in a workplace?

TF: There are seven key areas executives consider when considering a new opportunity (or staying put). They are:

1. A challenge: If there is no challenge, interest is lost quickly.
2. Advancement potential: Make it clear what the long-term growth potential is within the organization.
3. Stability and risk factors: Some people have a stomach for risk and like it, while others prefer a steady environment.
4. Recognition: In my opinion, the most underutilized form of employee retention is positive affirmation. It is the least expensive thing you can do that will go the longest distance.
5. Location: Sometimes it matters, and other times it doesn’t. Remote offices continue to pick up steam in geographies that are less appealing to reside in.
6. Autonomy: The ability to run your own show and not have to have a committee meeting for approval is an extremely hot issue now, especially with millennials.
7. Money: Although it’s usually the last reason a person changes opportunities, it’s important. For higher-level roles (VP and up), some form of equity is standard and helps with retention in seeing challenges through to their completion.

WT: The labor shortage is obviously a challenge in this industry. Is finding qualified executive-level candidates an issue as well? how does the labor shortage affect that?

TF: It’s always an issue because we’re dealing with different demographics. What makes a baby boomer motivated is different than what motivates a millennial. They have different and unique ways of looking at business. Recent data shows that a third of the workforce in the U.S. are millennials.

There is still a war on talent. There are less qualified candidates and not an abundance of younger blood coming up the ranks. Some [executives] are transitioning more into a consulting-type role, so they’re doing things part-time and not fully retiring. Because there is such a gap in talent, some of these older professionals are really going to have to work longer.

If a company is low on labor or has a disgruntled labor force on a consistent basis, it will cause real issues. When that’s the case, you need a “turnaround guy” that flourishes in that type of environment. Part of finding the right leader(s) for organizations is finding those who know how to build thriving teams during labor shortages and know how to attract strong talent despite them.

WT: What have you seen companies doing to attract those younger upper-level employees?

TF: Social media is a big one. It’s just the way of our future with younger professionals, and integration of that in the day-to-day business [is crucial]. That certainly is going to play a larger role in the whole process of attracting the younger workforce.

Aside from a sign-on bonus, companies will craft as much time off as possible. Flex time has been a big thing. Mentor programs are critical and should be imperative at all companies. A better hiring process is also critical. No one likes doing panel interviews, and no one wants to work for a boss that struggles in making a decision.

If you find the right leader, the ones that are really good at what they do know how to attract and gain the trust of the younger workforce. They kind of shoulder that responsibility. I’ve found that’s critical. Your senior leadership and their ability to connect with and attract the younger folks coming up is absolutely imperative.

WT: Is retention an issue with executive-level positions?

TF: If you do your job well from the get-go, retention is not an issue. If you try to put a round peg in a square hole, you will have retention issues. Some companies are very keen on “stay interviews” to learn what will make employees want to stay versus leaving. Treating people well is the best form of retention. Stay interviews allow the employees to provide feedback, which also helps them feel appreciated.

WT: What do you think the next generation of waste and recycling industry executives will look like?

TF: I think they will be more sophisticated with technology. There’ll certainly be an increase of social media integration. I think flex time leads to better work-life balance. Work-life balance use to be a buzzword, and now it’s a must. Those are just a few things on the horizon that I think we’ll see.

The author is the assistant editor for Waste Today magazine and can be contacted at tcottom@gie.net.

Terry Weaver was recently appointed president of the Construction & Demolition Recycling Association (CDRA) during the association’s annual C&D World convention in Brooklyn, New York. For more than 20 years, Weaver has been a leader in gypsum recycling services as president and general manager of Denver, Pennsylvania-based USA Gypsum.

Waste Today talked with Weaver about his new role, the changing construction and demolition (C&D) recycling landscape and the goals he has for the future of the CDRA.

Waste Today (WT): How did you get started in the C&D recycling industry?

Terry Weaver (TW): We founded USA Gypsum in response to market demand for drywall material, and recycling was a prime material source. The concept of getting involved in gypsum drywall recycling came about when an agronomist doing soils analysis work on my farms felt gypsum would balance our soil nutritional needs, but at the time, there wasn’t any available locally. Research on markets and material sourcing led to us building our own pilot plant in 1998.

WT: How have you seen the industry change over the course of your career?

TW: In 20 years, recycling of construction materials went from being something that was rarely done to a sophisticated industry where more than 584 million tons of materials are recycled annually, which conserves natural resources, saves energy and creates thousands of jobs. My experience was similar. In 1998, the only people we could interest in recycling were modular housing manufacturers. Seven years later, we began hearing about green building and the LEED rating system, and by 2006, we were working with the first mixed C&D processors who sent us gypsum drywall segregated from the mixed C&D waste stream.

WT: What are some of the top initiatives you want to tackle in your time as president of CDRA?

TW: The CDRA board recently updated its strategic plan. One of our main initiatives includes increasing membership so that the CDRA can increase research and advocacy efforts to advance the C&D recycling industry as a whole. The work that the CDRA does to support C&D waste processing seems to be a well-kept secret. Despite quality research on critical and underserved markets such as wood, processing fines and advocacy work at the federal and local level, thousands of recyclers and vendors who derive their livelihood from the industry are not taking advantage of the opportunities to collaborate, innovate and advance the industry that the CDRA provides. I view it as my challenge to find out why and help bring industry participants into the fold.

WT: What are the biggest challenges facing the C&D recycling community?

TW: Finding markets for recycled materials remains the biggest challenge. Unlike the international market difficulties facing municipal solid waste (MSW) and curbside material recycling, most C&D markets are local. That means reclaimed materials can be utilized locally while creating value for the communities the recycler serves. Regulatory hurdles and questions pertaining to material quality are also areas where research and market development are needed.

WT: What more needs to be done on the legislative front to ensure C&D recycling remains as viable as it can be?

TW: Recovered C&D wood markets especially need support at the federal and state levels. C&D wood extracted from the waste stream is an important economic source for processors. The CDRA won important considerations in the U.S. Environmental Protection Agency’s (EPA’s) view of C&D wood being a viable fuel source, but states have been slow to permit facilities while encouraging or, in some cases, requiring C&D recycling where it makes sense to do so.

We also are supporting efforts by the EPA to improve the recycling infrastructure in this country, as well as pushing an effort by a large group of recycling and manufacturer organizations to get funding to support recycling facilities.

WT: What notable C&D recycling trends are you seeing? Are you optimistic or pessimistic about where we’re heading?

TW: I am optimistic. I believe developers and building owners are responding to consumers’ preferences for more recycling and recycled content. Landfill capacity shortages and odor issues in some regions will raise landfill costs in the future, which in turn increases the value of recycling. On the operations side, I believe the application of artificial intelligence, robotics and other equipment investments at recycling facilities will improve quality and lower costs.

Metso announces two personnel changes

Metso Waste Recycling, based in Helsinki, has announced two personnel changes meant to expand the company’s reach both in North America and in the U.K. and Ireland.

Lou Martins is Metso’s new general sales manager in North America. Martins brings significant experience and a proven track record from the solid waste market, Metso says, including six years with Van Dyk Recycling Solutions, based in Stamford, Connecticut.

At Van Dyk, Martins successfully developed and led a North American solutions initiative for processing and treating a new waste stream for glass, Metso says.

Part of Martins’ tasks in his new position will be to establish a waste recycling organization in North America to drive growth in the region for both static and mobile waste shredders. This includes hiring a distribution manager, establishing strong partner relations with plant builders and driving a solid pipeline to validate the potential in North America.

In addition to English, Martins speaks Portuguese and Spanish. He holds a bachelor’s degree in mechanical engineering as well as an MBA in sales and marketing.

“[I’m] looking forward to being part of a group with an incredible reputation backed by years of success in extremely demanding applications across diverse industry segments,” Martins says.

Daniel Fairest is Metso’s new area sales manager responsible for the U.K. and Ireland. Fairest resides in the U.K. and has substantial waste business experience, Metso says, with more than 15 years in the British waste industry. Most recently, he was a sales manager at UNTHA shredding technology, based in Austria.

Fairest’s role is to grow Metso Waste Recycling’s market share by establishing and developing lasting business relationships with both new and existing customers and agents while assisting them in all aspects of their waste recycling and size reduction initiatives. Ultimately, Fairest is charged with growing the brand in the U.K. and Ireland in his new role.

Fairest has a degree in graphic design and commercial advertising.

“I am looking forward to becoming an integral member of the Metso Waste Recycling team and making a significant contribution to developing the U.K. and [Ireland] business,” Fairest says.

Terex announces new facility in Northern Ireland

Terex Corporation, Westport, Connecticut, has announced it is opening a new $13.5 million manufacturing facility in the town of Campsie in Derry, Northern Ireland.

The new 105,000-square-foot facility will focus on the design, manufacturing and development of the Terex Ecotec (waste management and recycling) and Terex Conveying Systems (mobile conveying) product lines.

“As part of our growth strategy, we continually review markets to identify potential opportunities. The waste management, recycling and mobile conveying sectors are areas of significant growth, and our objective is to be recognized as a leading global manufacturer in these areas,” said Kieran Hegarty, president of Terex Materials Processing, during the announcement of the new facility in Derry. “Our Terex Campsie facility will enable us to realize this ambition.”

Terex says its Ecotec product line has grown significantly since it was established in 2014. The Terex Campsie facility will focus on developing advanced waste management and recycling products and services for Ecotec customers.

Terex Conveying Systems was established to respond to increasing demand for mobile conveying systems. The Terex Campsie facility will manufacture four new products in the conveying range and facilitate product development.

Work is already underway at the Terex Campsie facility and it is planned to be operational later this year. The facility will initially create approximately 100 new jobs that include production operative roles, management and support roles in HR, operations and finance, as well as an engineering team that will be trained to leverage the company’s engineering capabilities and lead the development of Terex product portfolios.

“Our investment of this size in a new facility will support our ongoing growth and development as we seek to build on the momentum of increased demand for our products globally,” Hegarty says.

For more information visit Terex’s website.

AMP Robotics partners with Japanese waste technology company

AMP Robotics Corp. (AMP) of Louisville, Colorado, and Ryohshin Co. Ltd. of Japan have announced a partnership to make and sell artificial intelligence (AI)-driven industrial robotics for material recovery in the Japanese construction and demolition (C&D) market. The companies also announced the commercial launch of a comprehensive solution of C&D robotic systems now available in Japan.

Ryohshin designs, engineers, manufactures, distributes, integrates and services waste management technology, while AMP develops AI and robotics for the recycling industry.

Ryohshin and AMP co-developed a robotic system using the AMP Neuron AI platform to guide robots that recognize, sort, pick and process C&D debris for recycling. The two robotic systems developed in the partnership are called “AI-Benkei” and “AI-Musashi.”

AMP calls AI-Benkei a “heavy-duty workhorse” that uses a single-robot cell to handle heavy debris up to approximately 88 pounds, processing up to 25 metric tons (55,116 pounds) per hour. AI-Musashi is the “high-speed racehorse,” AMP says, using a tandem-robot cell that rapidly picks smaller items at a speed of 160 pieces of material per minute, processing up to 10 metric tons (22,046 pounds) per hour. AMP says the two systems form a complete solution that can operate 24/7 and process a vast array of material, including metal, wood, electronics, concrete and more.

“Ryohshin is grateful to partner with AMP. I am very pleased by their expertise in artificial intelligence and robotics,” says Osamu Kono, CEO of Ryohshin. “Our customers will benefit greatly from AI-Musashi and AI-Benkei. This technology marks a significant advancement for recycling in Japan.”

AMP has licensed AMP Neuron to Ryohshin for the use and sale of these robotic systems in Japan. In return, AMP will use the robotic technology developed with Ryohshin for its own next-generation AMP Cortex C&D robotic system for sale in North America.