STATEMENT ON CURRENT RECYCLING MARKETS (12/08)

Each day, the headline grabber continues to be the somber news about the economy. The recycling industry, with its related activities, are also facing the hardships of this economic slowdown and shrinking market demands.

The Illinois Recycling Association claims as its members all who contribute and support the full range of recycling activity in Illinois; the hauling industries that collect recyclable materials, recovery facilities, manufacturers, educators, and all units of government that make policy decisions and contract for services to our citizens.

Our industry’s struggle is especially ironic as we reflect on the conflict of experiencing an upsurge in the interest and support to protect our environment and to live greener, with the reduction of markets to purchase recyclable commodities, and consequently, the lack of demand for re-manufactured consumer goods. The impact is already taking hold on our members as we face the prospect of pricing decisions, layoffs and service reductions while the demand for recycling and preserving natural resources remains strong.

We are concerned that an uncertain outlook for the duration of these financial pressures can result in losses not only to our industries, but also to a way of thinking and established behavior that may take years to regain.

Governments are enacting employee and service reductions as a result of declining tax base. We encourage decision-makers to look creatively to ensure that recycling services are not eliminated as a service to your community.

The title of Recycling Coordinator has over the past number of years been eliminated or re- defined when facing reduced revenues. However, the responsibilities of researcher, educator, and contract liaison are vital roles to ensure that a recycling program will remain active and progressive for businesses and communities. We encourage both industries and governments to retain a staff position for a person who is knowledgeable and committed to providing information and services on environmental issues.

Contracts between municipalities and haulers often include a market share in the profits from sale of recyclable materials. With the reduced market demand for these commodities, profits can be significantly reduced or disappear. Market demand has slowed to a point in which recovery facilities and marketers for materials are faced with inventory that cannot be moved as quickly. Quality of materials may deteriorate over time and the value of these commodities could be compromised as attempts are made to find end markets. It is essential that all our members be aware that such circumstances will also have an affect on revenues and ability to market such materials.

We encourage our members to be open to each other’s position in this shift from a profit to a net loss for commodities that are recycled and work toward mutually beneficial solutions.

We are hopeful that the markets will rebound, though how quickly and how strongly is still uncertain. Much is dependent upon demand from China and the Far East. If demand continues to lag, some processors or haulers may be forced to landfill materials as quality or recovery capacity result in inability to find end markets. We must ensure that the public is clearly informed of the reasons for any decision to send recyclable materials to a landfill and assurances that this choice is temporary. Past experience has taught us that the public will lose faith in recycling if they discover instances in which recycling is not occurring. We must ensure, for the integrity of our industry, that we are open and honest with our publics and that landfilling is approached as a last resort. We encourage all members to make any decision to landfill recyclable materials only after exhausting all other options.

Conservation of non-renewable resources, reduction of greenhouse gases and the creation of manufacturing jobs via recycling industries, are all gains we have made by the establishment and growth of recycling industries. The generation of waste and demand for landfill space can be significantly off-set by continuing our source-reduction practices and offering recycling alternatives for consumer discards.

We encourage not only our members, but all citizens, government entities, and businesses to make every effort to preserve a continued commitment to resource conservation and diversion from our landfills.

Finally, we wish to express our support and concern to all our members. We ask all members to be supportive to each other. We encourage those who have lost employment to continue to network through the organization. Make colleagues aware if you are willing to provide references; let others know of potential employment opportunities or potential markets for commodities. We are confident that we can weather this downturn in the economy.

We have come a long way since our organization began twenty-eight years ago. We must explore how we can continue to make our industries capable to meet new challenges, to develop energy conserving processes, provide local employment and produce quality consumer goods in our state. We have the skills, we have the knowledge, and we have the commitment to fulfill these goals.

Sincerely, Kristina A Kaar,
President

CONTACT: Mike Mitchell,
Executive Director
executivedirector@illinoisrecycles.org
708-358-0050 (office)