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History
A Brief History of Solid Waste Management in the US, 1950-2000 |
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Part 5b: Building an Infrastructure In the previous segment, we discussed the role of federal and state solid waste programs as part of a larger infrastructure that has helped to coordinate and organize the refuse management enterprise. This part concludes with a description of other institutions responsible for improving the infrastructure. Links to other parts of our series may be found at the end of this article.
From the 1940s to the ’70s, private-sector solid waste management service providers consisted of literally thousands of small privately held companies. These companies were self-reliant, untrusting of government, and very territorial about their businesses. In the late 1960s and early ’70s, three publicly traded companies - SCA Services, Browning-Ferris Industries Inc. (BFI), and Waste Management Inc. (WMI) - changed a locally based mom-and-pop business into a big national industry. SCA is no longer around. The other two companies will be discussed. As with almost all great stories of the birth and growth of corporate giants, one person provided the leadership to make it happen. BFI and Tom Fatjo. Tom Fatjo is attributed as being the individual who conceptualized the idea to establish national solid waste service companies. In 1967 Tom Fatjo and his cousin, Tom Deane, bought a truck, formed American Refuse Systems (ARS), and started providing collection service to his neighborhood because their hauler was providing lousy service. In 1969 ARS acquired a controlling interest in Browning-Ferris Machinery Company, merged the two companies, and formed Browning-Ferris Industries (BFI) as a solid waste services company. In 1970 BFI implemented the Fatjo strategy and, primarily using stock as cash, began a highly successful acquisition plan. Not only were companies acquired, but talented people were as well. The acquisition of three particular companies offered the opportunity for BFI to gain the involvement of the majority owner and president of those companies, Harry Phillips, who joined BFI as president and chief operating officer. By 1972 BFI was operating in 26 states, Puerto Rico, and Canada; had over 4,200 employees; and had revenues of over $100 million. The company grew to a multibillion-dollar international company. In 1999 BFI and Allied Waste Industries merged, and the resulting company is now operating under the name of Allied. WMI and Dean Buntrock. Dean Buntrock got into the solid waste business in 1956 as of the result of a family tragedy - the unexpected and sudden death of his father-in-law, Pete Huizenga. While attending the funeral in Chicago, the family approached Buntrock to stay and help deal with the settlement of the estate and the business. Buntrock went to work in the family business as an employee. He incorporated WMI in 1968 to bring the various Huizenga enterprises under one organizational roof. By early 1971 all Huizenga enterprises, including Wayne Huizenga’s Florida companies, had been folded into WMI. Following the example of BFI and SCA Services, Buntrock decided to go public to enable the company to grow. On June 17, 1971, WMI went public with an offering of 320,000 shares at $16/share. The initial offering raised $4 million that was used to retire debt and buy equipment. In the first nine months of 1972, using stock as the primary means of acquisitions, 133 firms were acquired, and revenues in 1972 were $82 million. WMI was on its way. In 1998 WMI and United merged, and the resulting company is now operating under the WMI name. Solid Waste Associations and Professional Societies During the 1960s-’70s, as the assault on the open dump was mounted, when local governments and states begin to build more sophisticated systems and national companies were being formed, associations of solid waste professionals begin to emerge too. NSWMA/EIA. With leadership provided by Dean Buntrock, Marshall Rabins (Universal By-Products) of California, and Harold Vandermolen, three regional private associations - the Chicago Ash and Scavenger Association, the Coordinating Council of Waste Collection and Disposal Association of California, and the Detachable Container Association - joined to form the National Council of Refuse Disposal Trade Associations (NCRDTA) in 1962. In 1966 a Washington-based public relations and association management firm, Larry Hogan Associates, was employed to represent the council in Washington, DC. Senior Vice President Hal Gershowitz became the account executive and served as the executive secretary for the council. Early on, Gershowitz convinced NCRDTA to change its name to the National Solid Waste Management Association (NSWMA). Gershowitz credits the focus of the new federal solid waste program with the term solid waste as a factor in picking the term for the name of the organization. NSWMA was established to represent the interests of the private sector and is a 501(c)(6) trade association. NSWMA grew quickly to the point that, in April 1969, Gershowitz became the first full-time executive director. In 1968 the association held its first trade show in Chicago, and over time this show became WasteExpo, a huge solid waste equipment and trade show. NSWMA bought Waste Age magazines in the mid-1970s. Gershowitz left NSWMA in 1972 to join WMI. Gene Wingerter, then technical director of NSWMA, became the executive director. Under the leadership of these two men, NSWMA enjoyed continued growth well into the 1990s. NSWMA is now the Environmental Industries Association with two subunits: the National Solid Waste Management Association and WASTEC. GRCDA/SWANA. In December 1961, six men from the Los Angeles area came together to discuss forming a group to exchange ideas, knowledge, and information. Under the leadership of Grant Flint, general superintendent of Refuse Collection and Disposal for the City of Los Angeles, the Governmental Refuse Collection and Disposal Association was formed in 1962 and incorporated in the state of California as a not-for-profit association. The purpose of GRCDA was to support research, provide assistance to members, and provide a means for members to network. At the beginning, membership was limited to public-sector employees. In 1964 GRCDA opened its membership to private-sector employees. From 1961 until 1978 GRCDA grew to some 900 members and nine chapters on the West Coast. In 1979 GRCDA became a 501(c)(3) educational and research association. GRCDA began its annual seminar and equipment show in 1963 in Culver City, CA. Today WASTECON is one of the largest solid waste trade shows in the world. In 1978 GRCDA hired its first executive director, Lanny Hickman, and opened permanent offices in Washington, DC. The third staff member to join GRCDA was Kay Hickman, who served as the meetings director. Lanny and Kay Hickman retired from the organization in 1996. John Skinner now serves as the executive director/CEO. From 1978 until 1996, GRCDA grew to almost 7,000 members and 47 chapters. In 1989 the GRCDA changed its name to the Solid Waste Association of North America (SWANA). Today SWANA is a training and education organization, conducts applied research, and represents the membership’s interest in Washington, Ottawa, and abroad on all aspects of solid waste management. The states have organized their own association - the Association of State and Territorial Solid Waste Management Officials - to attempt to deal with EPA on a consistent "one-voice" basis. There are other associations, such as the Integrated Waste Services Association and the National Recycling Coalition, that focus on singular aspects of solid waste management. To read the other parts in this feature please click on the relevant links below:
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