If you pay attention, you probably see dumpsters in driveways, parking lots and yards with messages on them like “Rent Me” or providing a phone number to call for rentals. You may have had a thought or two about buying yourself a truck or trailer and a few dumpsters to start your own rental business. Is it a good idea?
The answer to that question will have to do with a lot more than just you. Where you live matters. What are the laws? How big is the market? How much are dumping fees? Are there competitors? Your family matters. Can you afford the financial investment? The loans? Can you afford to invest the time it will take to get things going?
That’s a lot of questions. In general, though, we can get an idea of how starting a dumpster rental business in 2021 differs from starting that same business 5 or 10 years ago.
So What’s New in 2021?
Earlier this year, IBISWorld released a Market Research Report on the dumpster rental industry in the United States. The report studies the current dumpster rental market and makes predictions for the next 5 years. The report makes some interesting observations.
The previous five years (2016-2021) saw the dumpster rental industry grow consistently each year (until 2020), driven largely by growth in residential and non-residential construction. Of course, the COVID-19 pandemic brought a sudden stop to that growth, and the demand for dumpsters dropped dramatically.
Is There Good News?
The good news is that we are already seeing growth in non-residential construction, and the demand for dumpsters is increasing again. The report projects that construction will continue to grow each year, and to reach pre-pandemic levels quickly within that 5 year window.
The bottom line: the dumpster rental industry isn’t quite what it was 2 years ago, but it’s growing again and demand should keep increasing for the next several years. Is it a good idea to start a dumpster rental business in 2021? Do your research and find out if it’s a good fit for you. If it is, there’s no reason to wait. As demand grows, so will your competition. The sooner you get started and get your name out there, the better position you’ll be in to take advantage of the growing demand over the next 5 years.