Steps Backward and Forward for Recycling
By George Stubbs
As 2020 has turned into 2021, a look at the current state of recycling operations in municipalities across the nation reveals an array of programs in various states of condition--some retreating, some advancing. The pandemic arrived in early 2020 to deliver a gut punch to many municipal waste management and recycling programs, which were already reeling from a slumping market for recovered materials.
The business and school closures and other disruptions forced by the pandemic prompted, among other things, significant shifts in waste generation. Municipal waste departments and their waste contractors had to move adroitly in response to these changes, even while they modified safety procedures and, in some cases, experienced staff shortages as a result of COVID-19 outbreaks. For small businesses and municipalities, it was especially hard, as lost business activity resulted in hits on revenues and municipal budgets.
Still, the news is not all bad. Many cities and towns are still innovating and even expanding programs. Despite the media hysteria, recycling is far from dead.
Most interestingly, revenue from recycling operations is up for the five largest waste management companies in North America. In its December 2020 issue, Resource Recycling magazine summarized the Q3 2020 financial reports of the big five--Waste Management, Republic Services, Waste Connections, GFL Environmental (serving mostly Canada), and Casella Waste Systems. Recycling-related revenue is up for all of these companies, in some cases dramatically. Texas-based Waste Connections, for example, enjoyed a year-over-year recycling revenue increase of 51% to $21 million for the third quarter of 2020. New England-based Casella reported a more modest but still hefty year-over-year increase of 17% in recycling-related revenue to $13 million during the third quarter.
The across-the-board increases in recycling revenue are not primarily due to increases in the volume of recycled materials collected, the companies reported. Instead, and perhaps remarkably given commodity pricing trends over the past few years, the prices for many recycled materials are up. The supply of recyclables is down, while the demand by reprocessors has remained high--particularly for old corrugated cardboard (OCC), which is enjoying the “Amazon effect” of increased package delivery. Waste Management reported that commodity prices had shown an average increase of 33% during the third quarter compared with the same quarter of 2019.
It’s important to remember that recycling operations account for less than 10% of the overall revenue for each of these five companies. Moreover, their financial clout has allowed a couple of them to strengthen their recycling capacities and capabilities. GFL, for example, reported that it was expecting to make investments of $3.8 million to $7.7 million U.S. in its recycling operations during the fourth quarter.
Municipalities and smaller regional and local haulers tend not to have that kind of financial heft, however. Some are thus struggling, as a result of budget constraints, the lack of geographically feasible options for re-processing capacity, contamination, and other issues. Some municipalities are moving forward, however.
With each monthly issue, Resource Recycling magazine gives a snapshot of recent changes in the recycling programs in various jurisdictions around the continent. With the magazine’s permission, we list the updates provided in the December 2020 and January 2021 issues:
Cairo, NY: Closed the town’s drop-off recycling center, citing a significant increase in dumping of non-recyclable items.
Fulton, MO: Passed a requirement that all residential recycling customers rent a recycling cart from the city, rather than allowing bagged recyclables at the curb. The city has increased the monthly rental fee.
Kent County, MI: Began accepting paper cups at its drop-off recycling centers, with financial support from the Foodservice Packaging Institute.
Lady Lake, FL: Ended curbside recycling after three decades due to rising costs that the town’s contracted hauler attributed to fluctuating recycling markets.
Murray, KY: Approved a preliminary plan that could bring curbside recycling to the city.
Pittsburgh, PA: Began rolling out 32-gallon recycling bins to residents, part of a transition away from bagged recyclables collection.
Rockford, IL: Reinstated recycling collection after a two-week pause due to a COVID-19-related employee shortage.
Salisbury, MD: Resumed recycling service after it had been suspended for several months due to COVID-19 concerns. Due to worker shortages, the reinstated program no longer accepts plastic, which requires more manual sorting than other materials collected through the program.
Smithfield, VA: Will end curbside recycling service due to budget shortfalls from the impact of COVID-19.
Stamford, CT: Indefinitely closed a local drop-off recycling center due to lack of employees, which in turn is being driven by budget cuts and COVID-19 precautions.
Wausau, WI: Will begin using Betterbin, a recycling education app that allows residents to use a smartphone to scan a product’s barcode and find local recycling information.
Erie County, NY: Began using the Recycle Coach app to communicate proper recycling tips, local schedules, and more to residents in the county’s 44 communities.
Holland, MI: Is gearing up to switch from bagged recycling collection to a cart-based single-stream program.
Laramie, WY: Issued a public outreach message reminding residents to flatten boxes and cut them down to fit in recycling carts, anticipating an influx of OCC following the holidays.
Manteo, NC: Ended government-managed recycling service and returned to a subscription-based system with local contractors.
McAllen, TX: Opened a drop-off recycling facility that was built entirely by city employees; recycled materials were used for much of the project.
Norman, OK: Opened a residential drop-off recycling center accepting standard recyclables, as well as used lumber, tires, and scrap steel.
North Hempstead, NY: Launched a drop-off recycling option for polypropylene items, accepting yogurt cups, shampoo bottles, and more.
Qualicum Beach, British Columbia: Will end government subsidies for multi-family recycling collection, leaving these properties to pay for the service themselves.
Tioga County, NY: Ended its government-facilitated recycling service due to budget concerns, shifting to a system in which residents are required to contract with a private hauler for recycling pickup.
York County, PA: Suspended residential drop-off electronics recycling in December due to a spike in COVID-19 cases. Residents were advised to hold onto their devices until the pandemic has passed.
Of note in this list is the indication that some jurisdictions--even the city of Pittsburgh!--have been allowing the collection of recyclables in plastic bags. At least the cities listed here are making the transition (putting recyclables in plastic bags for curbside pickup or disposal at the DPW yard is a big no-no here in Melrose). And a big hats off to the employees of McAllen, Texas, who built a drop-off center using recyclable materials for much of the project. Well done, McAllen!
