WasteExpo 2021: Business Leadership Forum provides positive outlook for industry

According to Comerica’s chief economist Robert Dye, the overall outlook of the economy is mostly positive. After an unprecedented year, markets are seeming to be recovering from the blows of COVID-19. Dye, along with several others, spoke during WasteExpo’s Business Leadership Forum to offer an economic outlook on the waste industry. The forum took place June 29 in Las Vegas.

Addressing issues the waste industry knows well, Dye said he thinks the labor market is going to tighten up with the influx of jobs being added. Other influencing factors like a potential tax increase also seem less threatening to Dye. He said he doesn’t expect any tax increases to impact consumer spending, which could be attributed to a pent-up demand over the last year.

As the industry recovers from the pandemic, Michael Castellarin, managing director of Clairvest, said there is a lasting positive impact from the tumultuous year.

“We’re better prepared for any sort of emergency now,” he said, adding that workplace safety, procedures and policies have only improved since the onset of the pandemic.

Even with the financial constraints experienced during the pandemic, Castellarin said if anything, business owners now know they are capable of running their businesses leaner and more diligently.

“Everyone learned how to do as much or more with less,” he said.

In terms of buying and selling, Jeff Kendall, managing director at Laurel Mountain Partners, said it’s not time to wait. Kendall said it’s a good time to sell, and those considering an exit shouldn’t wait around. Those preparing to exit should also understand that the exit process is just that—a process. Effram Kaplan, managing director & principal, Brown Gibbons Lang & Co., said to begin the preparation well ahead of time.

Kaplan also said people are a key part of valuation and should been seen as a long-term investment if you’re preparing to exit.

“One of the most important things is looking at who to build the company around,” he said. “Sometimes the current owner may not always be the best choice.”

For more insights on valuation and M&A activity, join moderator Effram Kaplan at the Surveying The M&A Landscape: Where Are Values, Where Are They Going? session this November at the Corporate Growth Conference.