Compliance Standards LLC

Announcing: The ITAD Senior Leadership Retreat #Arizona, February 2025 | https://lnkd.in/g27qG8tT Event Title: Shaping the Strategic Outlook of the ITAD Industry: Preparing for Mega Trends’ Disruptions, Thriving in Fast-Paced and Challenging Times A small group of very senior leaders from the #ITAD industry will meet in Arizona in February 2025 in an exclusive retreat hosted by Compliance Standards LLC. The retreat will also bring together #OEM executives, some representatives of end-user companies, top analysts and other relevant stakeholders to share their assessment and concerns and seek common solutions to the challenges coming from the macro events affecting the sector, such as #AI, #ESG, #geopolitics, #supplyChain, and secondary markets, to updating labor practices and educating customers. The retreat will seek a consensus on the way forward as an industry, all of which will take place in a fantastic southwestern setting with great food, deep networking and plenty of fun. We will book the facility for those of you who want to stay over the following weekend for Golf, spa, etc., so feel free to bring you spouse or partner for a fantastic time. Because it is a retreat, we can only accommodate two to three dozen participants+1. If interested, follow this link: https://lnkd.in/g27qG8tT

Lenovo just released its earnings results and they are impressive. Here's what they did and what ITAD companies should pay attention to.

Obstacles & Opportunities in Managing #ITAD: We had the pleasure of hosting Bo Guilbeault (Bo Guilbeault CAMP CSAM CHAMP CMAM CITAD CAMSE) from Starbucks, an expert on #ITAM / ITAD, and we discussed a whole range of issues. What is great about Bo is that he has in-depth knowledge of both sides of the ITAM/ITAD sector, having worked for some well-known ITAD vendors, before joining Starbuck, as a consumer of ITAD services. I invite you to listen to Bo by following the link below, as access is free: https://lnkd.in/g9wCa6Qd

#Component market going through correction phase, likely to cause some problems for the secondary market and #ITAD business.

Analysis: Intel & AMD: The Perils of Being Number One and How they will Impact ITAD and Electronic Recycling By David Daoud: Wall Street loves companies that are number one in their respective business sector, and lead in market share. However, I used to tell my clients that it may not always be the optimum stance in being number one. Firstly, that’s the ceiling, even if you have room to capture more market share, there is still nothing higher than number 1. Then there is the crazy amount of scrutiny from investors. They will want more and more of you, and then as a CEO or CFO, you are constantly worried about how you will share news and updates in the next earning season that would help maintain the company’s lead. And if there is no good news, it’s mayhem. I think the number two company is probably better positioned. There is less scrutiny, and you can still do very well. Case in point: #Intel and #AMD are generally in the same business. They have a huge impact on the #ITAD and #recycling sector by virtue of their contribution in defining today's and tomorrow’s technology. Their work can speed up or slow a refresh cycle. They can get end-users to retain their system longer and vice versa. They can sway vast numbers of partners to follow their lead. Intel has about 250 such partners, and it can orchestrate product launches, roadmaps, etc. Intel is much bigger, with 2023 market capitalization of some $150 billion to $200 billion, though as of today (August 2, 2024), it fell below $100 billion due to a rough quarter. AMD is typically around $100 billion to $150 billion, settling today at some $134 billion. Intel’s 2023 revenue was approximately $54.23 billion, vs. $22.7 billion for AMD. Everyone knows Intel holds the lion share of the CPU and GPU markets, upward of 60-70% in the desktop and laptop CPU space. In the server market, Intel tends to peak at 75-85%, etc. Client access to the full analysis (requires subscription: https://lnkd.in/e4PwKaSN)

By David Daoud: I admit I lack knowledge on the #EV #battery business. It is very distinct from the sectors I've traditionally tracked, in particular since EV batteries are not IT equipment. Yet, on the one hand, batteries in general are key components of many important #IT systems, and so, of course, when one talks about recycling, one should be concerned about these batteries that are extracted from #PCs, #servers, etc. On the other hand, some large #ITAD companies in #Asia have begun to invest in EV battery recycling, with some of these moves also taking place in North America. So, I was curious about EV batteries and who is better positioned to talk about that than our friend and expert Lauren Roman? But first here’s a quick snapshot on the EV battery market: it is estimated to be valued at over $60 billion on a worldwide basis. To compare with brand new PCs, valued at over $200 billion this year and likely to double by 2032 at a CAGR of roughly 5%. EV battery value will be stronger at a CAGR of some 19% to more than $300 billion by 2023. While it is hard to measure the size of the EV battery recycling sector, several analyses point to nearly $10 billion last year. How do you get this number? Well, the federal government is funding many of such initiatives and produces data to support its programs. The opportunity for growth is immense, with the recycling part in the EV sector expected to outperform the PC and EV manufacturing sector by a healthy 26% CAGR from 2024 to 2031. So, my curiosity led me to Lauren Roman, and I had a blast talking to her. Lauren is absolutely one of the brightest people I know and so I have the privilege to share our chat, for those interested in the topic. Access to the podcast is free, with basic registration or just use your Linkedin credentials. Follow this link: https://lnkd.in/epSmrwSW

Company and Sector Update: Another stellar performance for AMD, a clear indicator of ongoing and aggressive refresh cycle in the #datacenter, which we expect to last for a long and sustained period on AI impulse. The data center business for AMD grew 115% Y/Y with the company shipping Instinct GPUs and sales of 4th Gen AMD EPYC CPUs. This triangulates with some folks who told us they are seeing fast movements in the datacenter and hyperscallers world. For #ITAD vendors playing in the enterprise business, this means more opportunity for higher volumes of data center gears and parts that could then be resold in the secondary market at decent prices and margins to fuel the construction of data centers that need earlier generations to components to function. There are many types of data centers and not all of them will have the money to buy the latest and greatest gears and processors. These won't be cheap for a while as competition for them will continue to rise.. hence the secondary market for these parts should be great.

Company Update: Iron Mountain: Looks like Iron Mountain had another great quarter. Record results. Although growth is strong across all segments, specific to #ITAD, company showing strong growth driven by four things: 1. Strong volume growth, perhaps that's the bigger contributor vs prices. Lots of it coming from hyperscalers who are decommissioning to make way for new gears to upgrade their technology base. 2. Higher prices. 3. A clever go-to-market strategy that relies on cross-selling approach and 4. Strong execution at Regency Technology, with IRM expecting to see more opportunity for Regency in terms of contribution and productivity gains going forward. This shows a mature go-to-market strategy should be a good catalyst for growth. In this earning seasons, various indicators from other companies and adjacent sectors suggest the bases of strong business momentum are building up and the momentum for exciting activity in the months to come.