Issue link: http://psai.uberflip.com/i/954030
22 2018 INDUSTRY RESOURCE DIRECTORY • Demand from agricultural concerns is expected to grow between 5 and 9% over the next two years. • An increase in natural disasters has fueled growth in affected areas in 2016 and 2017. Given the unpredictability of these events, it is difficult to say with certainty that growth in this area will continue, though the prevalence of weather-related phenomena seems to be consistent at this time. • Substantial changes in the technology on which the industry depends are not expected in the near future, although new toilet and waste disposal solutions may affect the nature of the industry over a five- to 10-year horizon. The nearer- term technology changes most likely to occur relate to software for routing and recordkeeping and for driver risk management. Other trends to watch: • Consolidation. The largest players in the portable sanitation 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 should be minimal. • 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. As a point of fact, 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 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 multiyear 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