Issue link: http://psai.uberflip.com/i/1212564
11 SURVEY OF WASTE DISPOSAL OPTIONS & THEIR IMPACT ON THE PORTABLE SANITATION INDUSTRY © Copyright 2020 by the PSAI. All rights reserved. About 65% of respondents has experienced at least some rate increase from their disposal facilities over the past five years. A full quarter of respondents (25%) has seen increases of 20% or more during the period. At least 40% of respondents has experienced rate increases in excess of the aggregated general inflation rate of 7.99% during that time. 11 Looking ahead five years (2019-2024) and assuming an annual inflation rate of 2%-2.5%, we can expect an aggregated inflation rate between 8.8% and 10.95% for the period. The survey shows that fully 45% of the survey respondents expect their disposal rates to continue to climb at a rate that exceeds inflation in the overall economy. 12 Lack of access to disposal sites costs time and money, increasing overall disposal expenses. Nearly 60% of responding companies must travel over ten miles to a reliable disposal location. The average distance to reach a reliable disposal site is between 11 and 20 miles, and nearly 15% of portable sanitation companies must travel more than 30 miles each way to reach a disposal site. These trips are costly for the firms on many levels. Nearly 60% of these trips take more than 20 minutes each way, with an average one-way travel time of between 20 and 30 minutes. Considering the time necessary to evacuate the tank contents once the truck arrives, the process of disposal costs companies between one and two hours. These data show that disposal expenses are significant even when disposal fees are not part of the equation. Assuming each driver must dump daily, s/he will spend between 10% and 20% of their paid time involved in disposal activities. In addition, the cost of fuel and the wear and tear on trucks adds significantly to the cost of operating the business. We can estimate the average added cost to dispose a single load as follows. These costs will vary based on each company's situation. Same Up 10% or less Up 11-20% Up 20% or more 43% 37% 12% 8% 33% 25% 15% 25% 2% Same Up 10% or less Up 11-20% Up 20% or more Decreased Disposal Cost Change – Past 5 Years – Figure 15 Miles to a Reliable Disposal Site – Figure 17 Disposal Cost Change – Next 5 Years – Figure 16 Minutes to a Reliable Disposal Site – Figure 18 3. INDIRECT COSTS TO DISPOSE OF A LOAD OF WASTE Average distance to a reliable disposal site 15 miles Average round trip travel time plus time to dispose 1.5 hours Average cost of pay/benefits per hour for non-CDL driver $25.97 13 Average cost to operate the truck per mile $1.045 14 Total average cost to dispose over and above disposal fees $70.31 15 Same Up 10% or less Up 11-20% Up 20% or more 43% 37% 12% 8% 33% 25% 15% 25% 2% Same Up 10% or less Up 11-20% Up 20% or more Decreased 40-50 1.82% 12.73% 21.82% 18.18% 41.82% 31-40 21-30 11-20 <10 10% 0% 20% 30% 40% 50% 40-50 51-60 >60 5.45% 5.45% 12.73% 20.00% 14.55% 10.91% 30.91% 31-40 21-30 11-20 <10 0% 5% 10% 15% 20% 25% 30% 35%