May 12, 2020
Mention recycling to most people, and the image that is conjured most likely will be the journey from the curbside bin to the local waste transfer station. But in reality, most recycling activity in the United States occurs at industrial and commercial levels. NERC Advisory Member Institute of Scrap Recycling Industries (ISRI) plays an essential role in conveying timely information for the scrap recycling industry; the trade association “represents more than 1,100 private and public for-profit companies that process, broker, and industrially consume all scrap commodities.”
In its 2019 Recycling Industry Yearbook, ISRI describes the types of material that are defined as scrap. “Obsolete scrap consists of used and end-of-life materials and products. These include vehicles, appliances, electronics, cardboard boxes and other paper goods, bottles and cans, and clothing. Demolition sites are another common source of obsolete scrap.
“Prompt, prime, or new scrap comes out of the manufacturing process,” the report continues. “These materials include metal clippings, stampings, and turnings as well as paper overruns and cuttings.”
The environmental benefits of all kinds of recycling are well documented, and scrap recycling is no different in this regard. “Scrap commodities reduce the need to mine for ore, cut down trees for paper, extract fossil fuels to produce plastic, and otherwise deplete our natural resources,” the report asserts. “The 138 million mt (million tons) of commodities recycled in 2018 saved the equivalent of nearly 400 million tons of carbon dioxide, equal to the energy use of 48 million homes for one year.”
Unlike residential recycling—where materials recovery facilities (MRFs) contract with municipalities on a fixed basis—scrap recycling “is a business driven by demand,” ISRI reports. “Scrap-consuming facilities determine the quality and volume of scrap commodities they need and the price they are willing to pay.” Also unlike municipal recycling contracts—the values of which have been hard hit by crackdowns on exports to China and many other countries—the “global trade in scrap recyclables makes U.S. recyclers less dependent on local markets to sell their scrap. It also makes U.S. scrap consumers less dependent on domestic recyclers for their supply of scrap.”
“Scrap is bought, not sold,” the report observes. “Despite the sharp decline in U.S. exports to China, total U.S. scrap exports grew 7% by volume in 2018, to 40.4 million mt.”
Many of the report’s 80 pages break down the data on types of recycled scrap, and where that scrap ends up being remanufactured into new products, in great detail, making ISRI’s annual publication essential reading for those in the recycling industry. And the economic benefits provided by the recycling industry are not to be taken lightly. “The recycling industry is a major contributor to the U.S. economy, generating $109.78 billion in economic activity last year and directly employing 164,154 people with average wages and benefits of $73,000,” according to ISRI. “Recycling companies and workers pay $12.9 billion in federal, state, and local taxes, supporting the communities in which they operate in all 50 states.”
“The Recycling Industry Yearbook provides valuable information using facts and figures to paint an accurate picture of the important role the industry plays to the environment, economy and manufacturing,” ISRI Chief Economist Joe Pickard said. “As the public, policymakers, local communities and media have taken a renewed interest in recycling, the book provides a valuable resource to help them rediscover the positive impact our industry has on the world in which we live.”
By Robert Kropp, NERC Office Manager
Comments (0)
Add a Comment