September 28, 1998
Recycling at a Crossroads
Where's
recycling heading ?
There's no simple answer to that, as different stories. in this
week's issue point out.
There certainly are some warning signs. Phillips Petroleum Co. closed its plastics recycling operation, because company officials don't see much promise in the markets.
Meanwhile, glass cullet prices on the West Coast dropped for the first time in several years, and sources expect that to continue. Recyclers and processors are.blaming an oversupply of material for the sudden reduction.
But Waste News' first ranking of the top 100 recycling companies shows there is money to be made in recycling, particularly if it's in scrap metal processing. Twenty of the companies on the recycling list had revenues of $100 million or more; only 14 companies passed that mark on the Waste News Hauling and Disposal Top 100 ranking. this year. There are signs of change, however. Some of the big consolidators have said they plan to slow down the acquisition pace to digest the companies they've already gobbled up rather than ending up bloated.
Even discussions at the National Recycling Coalition's annual meeting this month reflected the ambiguous future of the business. Talk focused on how past and future consolidation might affect recycling and how the markets for plastics have flattened. Consolidation certainly could diminish the emphasis companies place on recycling.
Conversely, others pointed out the markets remain solid for certain types of paper and plastic, such as old newspaper and polyethylene terephthalate.
It's a crucial time for recycling. In many ways, recycling is pushing the limits of its potential in various markets and with consumer altruism. More than ever, recyclers need to be imaginative in developing markets or finding ways to increase recycling rates. Botle bills might be one means, as Pat Franklin of the Container Recycling Institute points out.
That huge variable of pricing will continue to have a lot to do with recycling’s future. Recycling will have to find ways to be competitive with virgin materials while at the same time cultivating consumer preference for recycled products. Getting people to make and buy recycled products will continue to be more key than simply collecting potential recyclable materials.
It's clear that recycling, as appealing a concept as it may be, isn't going to gain ground at the same pace and with the same relative ease that it did in the. past. Recycling advocates need to be inventive, but they also need to be realistic in accepting solutions that might not ideally serve their goals.
From here on, progress may look more like crawling one's way forward, rather than running straight ahead. Success will take ingenuity, patience and a long-term commitment.
