Name: Waste Management CEO says the trash removal company is really a technology company
Uploaded: 2020-03-06
Duration: 6 min 43 s
Description: Picture robots, data analytics and video games.

[ MUSIC ] Jim, many people think of Waste Management as that company that removes trash, and you do, do that. But you've also turned it into a technology company that clears that trash. Tell us about some of the kinds of exciting tech innovations that you've brought to the business. You're right, it has been a trash company for, we've been in business for over 50 years. So it has been a trash company for that long, but Recently we started to adopt technology. So applying data and analytics, for example, or bringing autonomy we were running an autonomous test vehicle today. We're putting up a plant in a facility actually in Denver, Colorado that remotely operates heavy equipment and that could redefine the job. Of heavy equipment operator. So all of that is is new technology. We're also changing our customer facing technology. So we're really using all different facets of technology in our business today. And I understand you're using robots and robotics and sophisticated sorting machines. In this plant in Chicago, you call it the plant of the future, which really could change the whole recycling process. Tell us a little bit about that. Well, a typical traditional traditional single stream recycle plant might have one or two optical sorters. And if you're not familiar with optical sorters, just it recognizes the type of material coming up. And it actually shoots, for example, a jet of air and knocks something off the conveyor belt. We have 14 optical sorters in this new plant. And then we're also using robotics, not at that plant, but at three of our other plants, robotic arms that actually also identify the type of material. And then go down and, kind of like a plunger, pick it up. And it's. Creates a much cleaner stream than actually a human could, so it's fantastic .>> You talked a moment ago about autonomous vehicles and understand you're testing autonomous running trucks, you're using them in your landfills. How's that working out ?>> It's working out quite well. It would be what's called level four autonomy. So there is somebody monitoring equipment sitting up front Level 5 would be where there's nobody up front where it's where it really is truly a self driving vehicle. And I think that's a ways away but level 4 where you actually have an operator up front. I think is is the technology is here today. It's just public perception and government regulation that are lagging behind a bit But we're encouraged about this as a future opportunity for us. Well, right now you have 18, 000 trucks that you use in your business. Can you see a day coming soon, where they would be replaced by autonomous vehicles on the road doing daily trash pickups? I guess it kind of depends on what your definition of coming soon is, right? I mean, coming soon In a year and a half, no, but coming soon in in five to 10 years where material percentage of the fleet is actually doing that autonomously? Look, I think that could happen. I think it absolutely will impact our business. It's not going to be next year, but it could be in certainly within a decade. How would it impact your business positively? Well, I think it also redefines the job. So we hear today that millennials don't want to drive trucks or they don't want to operate heavy equipment. It's very different if you're telling a millennial or a Gen Z. I have two daughters who are Gen Z. If I'm telling them Look, you're going to drive a truck but you're really not going to be driving the vehicle. You're going to be monitoring this computer equipment. That's a much more attractive job. Just like the remote operations of heavy equipment where you're sitting in a leather easy chair in front of a bank of HD screens and you're remotely operating it as if you're playing a video game. That is much different than actually sitting in a piece of heavy equipment and getting kind of bounced around al day. Well, actually you're already doing that at Waste Management. I understand that you do have these high tech command centers. So that people are remotely operating heavy equipment and bulldozers at landfills and it's less of a manual job. How is this changing your workforce and the people that you're hiring? Replacing them with a Gen Z or a millennial who has this expectation that we're more technologically sophisticated, I think involves this move from Traditional heavy equipment operator position to one that's almost more like a video game player. And that's where I think you'll see this really turn into a completely redefined job. So you may be looking for people who are experienced at video games. It's interesting you asked that because we have for heavy equipment operators at this centre today and two of them are millennials and They play fortnight or whatever and they really enjoy the job. So you're right. It could be somebody that has experience in in playing video games. Let's talk a little bit about this big acquisition you're about to close in on advanced disposal services. How is that going to impact where waste management is going? So advanced was the fourth biggest waste company in the United States When we announce the acquisition about a year ago, we feel like [ UNKNOWN ] management that bringing the technology that we just talked about to advanced disposal for example our on board units, they don't have on board units, they don't have units on their tracks that help dynamically rout their vehicles. So bringing that to their business I will really be a big plus for both their shareholders and our shareholders. It's why we decided to do the acquisition .>> Are you thinking of doing more acquisitions and especially in this area where you would bring in more technology and maybe a software know how? No doubt and I think there's there's two things here. There's either us bringing our technology to a company such as as advanced disposal, or maybe buying a company that has a different technology that we don't have and bringing that to a to a bigger a bigger model like waste management's. Well, Jim, you've made so many changes as Waste Management since you became CEO only three years ago, looking ahead, where do you see waste management going? And how will it be different than we know it today? I think the technology that we've talked about is really in its infancy right now and I think as you look three to five years out, it will really start to blossom into a much different company from a tech standpoint. That recycle plan of the future that we talked about in Chicago will ultimately be the replacement for all of these single strains we have forty some odd single strain plants around the company, and it will replace those, the end result of that will be a much cleaner recycle strain, and a much less volatile recycle business. It seems as if every earnings [ INAUDIBLE ] we're having to talk about the volatility of recycling, The plan is to change the technology around processing, which ultimately changes the business model itself. [ BLANK_AUDIO ]

Waste Management CEO says the trash removal company is really a technology company

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The company's using data analytics and even robotics.

Waste Management CEO says they're really a "tech company"

Picture robots, data analytics and video games.