When we think about innovation, we usually picture exciting advancements that make our lives better, easier, and when we’re really hitting it out of the park, innovation often makes things cheaper too.  But in the world of waste management, that last part—things getting cheaper—can actually cause some serious headaches.

Imagine this: new technologies make it possible to process waste more efficiently, recycle more materials, and do it all at a lower cost. Sounds great, right? Lower costs should mean lower prices for managing waste services, and who doesn’t love a good deal?

But here’s where things get tricky. When prices start to drop across the board, it creates what’s called deflation, and for waste management companies, that’s not necessarily as good as it sounds.

The problem with deflation is that it squeezes the profit margins of these companies. Managing waste isn’t just about picking up your trash every week. It’s a complex industry requiring large investments in everything from trucks, to facilities, to keeping up with recycling technology, to labor—a lot of labor.

It follows then that when prices drop, companies might not make enough money to cover all these costs. This can lead to cutting corners, laying off workers, or even shutting down recycling centers.

And here’s where it starts to affect all of us. If waste management companies can’t stay profitable, they could either potentially start charging more for services or offering less. Maybe your neighborhood loses its recycling program, or the cost of getting your trash service goes up. Suddenly, something that seemed like a win for everyone—innovation leading to lower prices—turns into a real problem.

So, while innovation is important—and let’s face it, we need all the help we can get when it comes to managing waste—the deflation that comes with it can have some serious downsides. It’s a reminder that even the best advancements can have a flip side, especially in an industry as essential as waste management.

Fear not however because Food Loops is continually bringing innovation to businesses, events, and all areas of hospitality. As we become more efficient our services increase, and our costs go down. 

Food Loops works with all waste companies who want to divert from the landfill.  Our model of 90% diversion from landfill relies on processing waste more efficiently, recycling more materials, and doing it all at a lower cost. 

If this sounds like a win for you, or just an intriguing concept, let’s talk!  Tom Rohr @ 479-621-5642.