Hazardous waste management capacity could become a constraint on U.S. industrial growth as manufacturing expands, according to a new analysis by Charles River Associates (CRA) commissioned by Veolia.

The report, “Hazardous Waste Management: A Hidden Input to US Economic Growth,” examines the role of hazardous waste management across the U.S. economy and estimates that the country generates more than 30 million tons of hazardous waste annually.

According to the analysis, a 1% shortfall in hazardous waste management capacity could reduce projected U.S. real gross output in 2033 by $27 billion. A 3% shortfall could increase the projected impact to $82 billion.

The report projects that U.S. hazardous waste generation could increase by about 5 million tons per year by 2033. CRA attributes the increase in part to industrial reshoring as well as growth in sectors such as semiconductor and battery manufacturing.

The analysis notes that hazardous waste is generated directly by many industries and also occurs upstream in the production of materials and other inputs used throughout the economy. The report specifically identifies food production, agriculture and chemicals used to manufacture pharmaceuticals among the activities that depend on hazardous waste management.

The findings suggest that waste treatment, disposal and recovery capacity will need to expand alongside industrial production to prevent waste-management constraints from affecting manufacturing activity.

“Hazardous waste management plays a far more important role in our economies than many people realize,” Estelle Brachlianoff, CEO of Veolia, said in a statement. “This analysis helps put that role into perspective and underscores why ensuring an expert, reliable management capacity is so important to economic strength and resilience.”

Alan Jaske, associate principal in CRA's Antitrust and Competition Practice and author of the report, said the analysis shows that hazardous waste management is closely connected to economic activity and should be considered alongside environmental and industrial policy.

Why it Matters

Chemical plants generate hazardous waste through a range of manufacturing and maintenance activities, making waste treatment and disposal capacity part of the infrastructure required to operate industrial facilities. The potential increase in waste generation projected alongside U.S. manufacturing growth could therefore create additional demand for treatment, disposal and resource-recovery services.

The CRA analysis was commissioned by Veolia, so its economic projections should be viewed in that context. The full report provides the methodology and assumptions behind the estimated $27 billion and $82 billion economic impacts.