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28 2019 INDUSTRY RESOURCE DIRECTORY Prior to the shutdown, IBISWorld had been predicting modest growth in special events this year. The effects of the shutdown will probably—at a minimum— eliminate that growth. Watch reports regarding the economic impact on disposable income to gauge what is likely to happen to attendance at events in your area. Agriculture is expected to remain a steady customer for portable sanitation establishments. While agribusiness overall has been declining in the past couple of years due to lower commodity prices and trade wars, portable sanitation is most often used when food crops are being harvested by hand. This demand tracks more closely to population growth and demand for fresh foods. The fruit and vegetable industry generally experiences a low level of volatility because fresh produce consumption does not fluctuate much on an annual basis. Over the past five years, household disposable income has increased, causing people to increase purchases of fresh produce from grocery stores and to eat out more often. Both of these factors have driven increased demand for human- harvested fruits and vegetables. No new harvesting technologies are expected to substantially alter the need for human harvesting in the coming year, so the amount of portable sanitation required will not change on that basis. If demand for portable sanitation in agriculture changes at all, it will more likely be due to fewer workers being available as the result of immigration pressures. Other trends to watch. In addition to the forces impacting the economy and portable sanitation's major customer groups, there are several other factors to watch in the coming year. These include: • Consolidation. The largest players in the industry will likely continue to consolidate regional market leaders into their companies whenever possible to increase market share and profitability. The metrics of the industry are such that profitability increases with economies of scale, and when consolidation happens, it can force other companies to substantially lower prices or exit the industry. This consolidation will not preclude new, smaller firms from entering the industry in other markets, so the overall impact on the number of firms in the industry could be minimal, but it will affect larger markets in the short term. • Environmental regulations. Although the current administration in the White House has promised to reduce environmental regulations, it remains to be seen whether these will have an effect on portable sanitation operations. The EPA does not regulate portable sanitation companies directly. The environmental guidelines that affect the industry are set by state and local authorities whose willingness to reduce requirements may not be as robust. The PSAI is not aware of any significant easing of regulations within the US to date. • The impact of end user opinions. Globally the opinions of end users are beginning to have an impact on the sanitation provided to them. End users don't want to experience odor, mess, lack of privacy, or contact with the waste of others. With the PSAI's multi-year campaign to raise awareness about what users should be able to expect from a portable restroom experience, the demands of end users will continue to grow. Watch for opportunities to provide more units and service, as well as higher-end options such as luxury units and trailers. Suppliers should be attuned to these end user preferences and look for ways to offer products that align with them. Industry Data Better worksites. Better weekends. Better world. EXCLUSIVE MEMBERS-ONLY CONTENT REDACTED Join us now at www.psai.org for access to this valuable information.