Waste Consolidation: IWS Acquisition Signals New Era for NYC

NEW YORK, NY – December 01, 2025 – In a move that underscores the monumental shift underway in New York City’s commercial waste industry, Interstate Waste Services (IWS) has acquired Filco Carting Corp., a fourth-generation family-owned hauler with a century-long history in the five boroughs. While acquisitions are common in the waste sector, this one is a powerful symbol of a new era defined by regulation, consolidation, and a push toward technological and environmental innovation. The deal strengthens IWS’s position as a dominant force just as the city’s controversial Commercial Waste Zone (CWZ) program begins to reshape a multi-billion dollar industry from the ground up.

The CWZ Catalyst: Forcing a New Competitive Landscape

The acquisition is not merely a growth play; it's a strategic necessity driven by New York's Local Law 199 of 2019. The CWZ program, designed to end the chaotic "Wild West" system where hundreds of private carters crisscrossed the city nightly, divides the five boroughs into 20 zones. Within each zone, only a maximum of three authorized haulers can operate, selected by the Department of Sanitation (DSNY) based on safety, recycling, and service criteria.

The goals are ambitious: reduce truck traffic by over 50%, cut greenhouse gas emissions, improve air quality in overburdened communities, and increase historically low commercial recycling rates. For haulers, the stakes are existential. Companies that did not win contracts are effectively legislated out of the market.

Interstate Waste Services’ subsidiary, Action Environmental Services, emerged as the program’s biggest winner, securing contracts to operate in an astounding 14 of the 20 zones, plus a citywide contract for containerized waste. This positioned the company for massive growth, but also presented a colossal operational challenge. The acquisition of Filco—which itself had won contracts for three zones—along with other recent purchases like Amro Carting and Full Circle Recycling, is a direct response. IWS is systematically absorbing the infrastructure, routes, and institutional knowledge of established local players to build the capacity needed to service its vast new territory.

"We are thrilled to welcome the Filco team to the IWS family," said Mike DiBella, CEO of Interstate Waste Services, in a statement. "Their history of being a family-owned operation, along with their outstanding reputation, made them a perfect fit."

This consolidation creates a new competitive landscape dominated by a handful of large, well-capitalized players. Alongside IWS/Action, Waste Connections, which secured 12 zones, and a joint venture between Mr. T Carting and Boro-Wide Recycling (MRT BWR), with six zones, now form the industry's new oligopoly. The era of hundreds of independent haulers competing on every block is officially over.

From Horse and Cart to Corporate Conglomerate

The story of Filco Carting is the story of New York City itself. Founded in 1910 with a single horse and cart on 38th Street, the company survived and thrived for over a century, passing through four generations of the Monopoli family. It became a respected institution, a testament to the endurance of local, family-run businesses that formed the backbone of the city’s service economy.

Its acquisition by IWS marks the end of that 115-year independent streak. It represents a broader, often bittersweet, trend accelerated by the CWZ program. The high costs of compliance—including mandatory fleet upgrades with AI-enabled cameras and telematics systems, new sealed waste bins for all customers, and rigorous safety training—create a high barrier to entry that favors large-scale operators. For many smaller, long-standing family businesses, selling to a larger rival became the only viable path forward.

"Joining Interstate Waste Services marks an exciting step in our century long history," stated Domenic Monopoli, Filco's CEO. "IWS shares our values and commitment to service, and I am confident that our legacy will continue to grow within this organization."

The integration involves absorbing Filco’s nearly 40 vehicles and over 100 employees into IWS's network of over 1,000 trucks and 33 facilities. While executives emphasize a shared vision, the cultural shift from a tight-knit family operation to a subsidiary of one of the largest private waste companies in the U.S. presents undeniable challenges. Preserving the "outstanding reputation" and customer relationships built over decades will be a critical test for IWS as it melds these legacy operations into its larger, technology-driven system.

The Promise of Greener, Healthier Waste Management

Beneath the market consolidation lies the promise of a healthier, more sustainable city—the core argument of the CWZ program's proponents, including advocacy groups like the Transform Don't Trash NYC coalition. By rationalizing routes and drastically cutting truck mileage, the system is projected to significantly improve air quality, particularly in environmental justice communities in the South Bronx and North Brooklyn that have long borne the brunt of waste transfer station traffic.

This is where IWS's business model and technological investments align with the city's green ambitions. A key competitive advantage for the company is its vertically integrated "waste-by-rail" network. Instead of relying solely on long-haul trucks to transport waste to distant landfills, IWS moves significant volume via its rail-served facilities. This method is substantially more fuel-efficient per ton-mile, dramatically reducing greenhouse gas emissions and removing thousands of truck trips from regional highways. Integrating Filco's collected waste into this system will amplify these environmental benefits.

Furthermore, the CWZ mandate is forcing a technological upgrade across the industry. By 2026, all commercial waste vehicles must be equipped with backup cameras and telematics systems that provide DSNY with real-time location data to ensure compliance. IWS is already investing heavily in retrofitting its newly acquired fleets to meet and exceed these standards, deploying advanced safety features and cleaner-burning engines. For businesses, the new rules also mean change, with mandatory containerization and pricing structures that incentivize recycling and composting over sending trash to landfills.

As the CWZ rollout continues—with zones in Queens and the Bronx already implemented and more to follow through 2027—the city is entering a grand experiment in managed competition. The acquisition of Filco by IWS is a clear signal of the industry’s new direction: bigger, more technologically advanced, and inextricably linked to ambitious environmental goals. The challenge ahead will be to ensure that this consolidated, high-tech future delivers on its promises of efficiency and sustainability, while navigating the loss of the local, independent character that defined the industry for over a century.