RECENT consolidations of major waste-hauling companies have created a demand for new refuse trailers in Canada and the United States, says Rick Kool, marketing manager at Universal Handling Equipment Company Ltd near Toronto in Hamilton, Ontario, Canada.
The large waste-haulers formed by the consolidations are asking manufacturers to build new equipment that is lighter, more environmentally friendly, and safer to operate, Kool says. Universal plans to expand beyond its market for refuse-handling trailers in Toronto to meet demands for the new equipment.
"Every sector of the waste-hauling industry is experiencing growth," Kool says. "Universal is expanding responsibly to meet the demand for new products. We have an emphasis on controlled growth."
Mobile waste-handling equipment accounts for 75% of the business at Universal, Kool says. The company plans to take advantage of an increased demand for waste-hauling trailers brought on by the consolidations.
The consolidations most affecting Universal occurred when Laidlaw Environmental Services was purchased by US Waste, which was then purchased by Canadian Waste. Another large refuse trailer customer is Browning-Ferris Industries (BFI), which has a solid-waste hauling contract with the City of Toronto.
"For refuse trailers, it was a famine for 21/2 years, and now it's a feast," Kool says. "Most of the consolidation is over and the major waste companies are buying trailers."
In Toronto, Universal already has 70% of the market for refuse trailers, according to Kool. The mobile equipment manufactured by Universal accounts for 75% of its business and includes trailers, roll-off hoists for waste containers, and truck bodies.
The company needs to expand beyond the Toronto market, which Kool believes is saturated with mobile waste-handling equipment. Kool does his own marketing studies and is in tune with the demand for refuse trailers.
The demand for refuse trailers is inextricably linked to population, Kool says. The Canadian population is roughly equal to 1/10 of the US population.
Using a mathematical formula that determines market demand in the hotel industry, Kool says he can accurately calculate the demand for refuse trailers in a given market. With the same formula, the hotel industry calculates the demand for supplies as diverse as food and laundry detergent.
"In a defined market, I know what is available in potential refuse equipment sales," Kool says.
Universal's marketing goal for 1998 calls for expansion into the US market for refuse trailers, he says. In the first quarter of 1998, Universal wants to penetrate markets for mobile waste-handling equipment within 350 miles of Toronto.
US Trailer Facilities The company already has a location where it manufactures and sells waste equipment in Owosso, Michigan. Recently, a BFI yard in Michigan bought 45 refuse-compactor trailers built at Universal's 120,000-sq-ft plant in Hamilton.
Universal has a third sales and manufacturing facility in Red Deer, Alberta. The Michigan and Alberta plants manufacture refuse containers. Refuse trailers are built at Universal's Hamilton plant, which installs hydraulic systems for the compactor trailers.
The company began building refuse trailer and truck bodies at its Hamilton plant in 1960. The 45 BFI trailers are 48 ft long and have hydraulic rams to compact refuse. Other Universal refuse trailers are equipped with Keith Walking Floors.
Designed for use in the US and Canada, the four-axle compactor trailers have a GCW of 140,000 lb, Kool says. With two lift axles, a tractor and six-axle trailer built for use in Michigan and Ontario have a GCW of 166,000 lb.
Universal changed the design of its equipment to meet the demands and address concerns of new large waste-hauling customers, Kool says. Many customers are asking for front-loading refuse truck bodies rather than rear loaders.
Because of environmental concerns, Universal designed a new seal for trailers and truck bodies, he says. Universal's patented Enviro-Seal inflates when a rear door is closed to prevent leachate from dripping on the ground.
Refuse Collection Trucks On trucks that collect refuse at schools, Universal installs no-step gussets, which prevent children from climbing on the vehicles, Kool says. Another change the company made to accommodate customers was a switch to high-strength, lightweight materials for higher payloads.
In high-wear areas on refuse compactor trailers, Universal uses Skandia 500, which provides good abrasion resistance, he says. A common specification is for AR500 -another steel that provides good abrasion resistance on Universal's trailers and truck bodies.
Hydraulic cylinders and other components for refuse truck bodies and trailers are fabricated by Weld-O-Matic Inc in Hamilton, adjacent to Universal's plant, Kool says. The president and owner of both companies is Mason Gerrard. Weld-O-Matic's primary business is building spot welders.
Universal allocates space in its plant as needed to build trailers and truck bodies, Kool says. Even though the demand for waste-hauling trailers is high, the company has no plans to expand its manufacturing plant.
"In the waste-hauling industry, the demand for trailers is dictated by market conditions," Kool says. "Our plant is busy and we expect this pace to continue for another year." o