Recycling industry to need "bailout?"
Here’s yet another example of the interconnectedness of our economy and the ripple effects of an economic crisis. Could it be that the recycling business is in need of a bailout? Hopefully not, but times are tough for those who’ve profited from reselling all that cardboard, paper, and metal that you’ve been putting in your recycling bin. Here’s a great story from NPR that you can read or listen to on the sad state of the recycling business in these tough times:
"DeVivo points to a mountain of paper. A few months ago, it was worth $56,000, he says. Now, "I can't sell that for the life of me. I have to pay a paper mill to take it away." This summer, the plastic used to make water and soda bottles — polyethylene terephthalate, or PET – sold for $300 a ton. Now it's down to $20. Tin is way down, too. The company is losing millions in revenue, DeVivo says, and he's just had to lay off 15 of its 250 employees."
A prime example of an end user for recycled steel is located right here in NC, Nucor. Guessing that not many of us have a need for their products, but they've made the economics work for them. Another that maybe you've heard of that is located in MA is Recycline who makes Preserve toothbrushes, tableware, food storage containers, etc. from scrap & recycled Stonyfield Farms yogurt cups. After you are done w/your toothbrush, razor or tongue cleaner you can return via postage paid envelope to Recycline & they'll be used in park benches, decking, etc.
One of the keys to keeping the recycling system afloat is to streamline it through setting standards. The recycling industry is very different from the auto industry in that you've got the companies mentioned in the NPR piece, but also big corporations that can acquire these smaller firms if they can't make it in this economy. Not the same as the auto industry as it is structured now. Certainly there is Tesla, GEM (owned by Chrysler), etc., but they have a negligible share of the market. Here in Asheville & several surrounding communities a small firm provides residential recycling services and the large corporations cover the businesses & industry sectors. It will be hard to see the local company & employees lose out, but there is a safety net in the large corporations.