DLL works with many large waste management firms across the world and has closely been watching trends in the industry as they emerge. Experts in waste management and recycling share their experiences in DLL’s report “Waste management trends and how to take advantage of them” which is now available to download for free.
Many new waste management innovations appear out of reach for companies and municipalities because of the higher investment and longer payback period involved. However, in the report, DLL experts in waste management and recycling share their experiences in helping a wide range of customers globally to finance new technologies that drive efficiency and ultimately reduce their total cost of operation (TCO).
Electric vehicles in the waste management industry
At DLL, we are seeing new electric technologies being introduced for garbage trucks, street cleaners, and other vehicles that can be used in the waste management industry.
The report looks at the main challenges we see for customers who are investing in electric technology, and those wanting to reduce the payback period.
Connected equipment
Internet of Things (IoT) technologies are being used to create a variety of new options for the waste management industry. These hardware and software solutions are relatively new and are often very customer specific, so many leasing companies have been reluctant to step into this market. As a result, most waste management companies must pay for this investment up front.
The report shows how DLL is using the same principles that we apply to other forms of software leasing to come up with different leasing options for new IoT solutions. This has helped a growing number of waste management companies benefit from software and hardware add-ons across a new or existing fleet.
Automation in the waste management industry
From wind-powered robotic sorters to sort construction waste 24 hours a day, to automatic waste transformers that turn organic waste in neighborhoods into biofuel, water, and fertilizer. Automation projects are usually unique and require an in-depth analysis of the project scope, the involved stakeholders, and, most importantly, the expected cash flow streams.
Download the report to learn more about why standard lease products should not be used in these situations.
Outsourcing in waste management
As many municipalities outsource their waste collection and recycling activities to private companies to reduce capital outlay and staffing costs, it consequently puts a large financial burden on the shoulders of waste management companies. Risk is compounded by contract periods which are shrinking from 10 or 15 years, to as little as five years.
Find out how DLL is adapting to this trend with shorter lease terms, more flexibility and letting customers partially outsource their business and residual value risk to DLL.
Waste prevention
Old equipment is not always ready to go to the graveyard. We help customers to use their equipment longer than may be originally intended, by selling and leasing back refurbished equipment. This may be a complete machine or re-use of an important and costly part of a truck set.
Pay-per-use in the waste management industry is a new strategy
Traditionally most vehicles in a waste management fleet are purchased or procured with a finance package like hire purchase. However, this doesn’t account for the fluctuating peaks and troughs in work resulting in some assets being left unused for long periods of time. Refuse vehicles, sweepers, lift trucks, wheel loaders, excavators, telehandlers and other vehicles may be affected.
A pay-per-use model helps overcome this and is a new strategy for many waste management companies. It has the potential to change the way waste management businesses view some of their assets, reducing risk and making it possible to remove the costs of idle and expensive vehicles from the balance sheet.
At DLL, we closely watch trends in waste management and other industries, because we actively support new, sustainable business practices and technologies that marry profitability with environmental and social benefits.
Download our latest trends report “Waste management trends and how to take advantage of them” for free and learn more.
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