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Recession Resistant Recycling
01 May 2009
With the economic downturn being felt in all industries and all areas, the need to cut costs and manage your resources more effectively is more important than ever, says Martin Hewitt, commercial director for PHS Orwak.
We should be aware of the three Rs, reuse, reduce and recycle, but as commodity prices fall we should all be thinking in terms of recession resistant recycling.
No one can fail to notice the rapid increase in the cost of waste. What was once a small and often accepted cost has grown as a result of environmental pressures, market dynamics and the landfill tax, which will continue to rise year-on-year and by 2010 the cost would be double that of 2007 - £48 per tonne.
Yet it’s not all doom and gloom. Where budgets are tight, businesses need to stop seeing waste as an inevitable and ongoing cost and instead view their waste as a resource.
Waste management and recycling is one area where simple steps can help an organisation dramatically reduce its waste disposal costs. With waste disposal estimated to account for up to three per cent of a company’s total turnover, it should be one of the first points of call for any organisation looking to defend its business in these challenging times.
Despite the predictions of some commentators, the market for recyclables is certainly not dead and a robust recycling system is an asset for any company, both environmentally and financially.
Building a waste management and recycling policy that can withstand the somewhat volatile commodity market need not be a complex or high-investment strategy:
Work closely with your waste management company
Remember that recycling is still an emerging market. The diversity of what can be recycled may astound you. From tyres to kitchen waste, oily rags to batteries, new technologies and new uses for waste are emerging all the time. Whilst these may not always be revenue generating, these new treatment and disposal options may offer considerable savings against landfill or incineration.
Understand the recycling market
You don’t need to study the daily commodity prices to understand the market. All you need to do is recognise that recyclers want high grade, segregated and clean material.
For example, you could dramatically improve your chances of selling your paper by further segregating it into good quality, white office paper, newspaper and packaging material.
It may be worthwhile looking at your operation to see if there are ways in which you can improve the quality of your recycling material. Whether this be segregating plastic shrink wrap from plastic drinks bottles or identifying ways in which you can reduce any contamination of waste. These steps will make it much easier to sell on your recyclables and improve the rate you get for them.
Present your waste correctly
Now more than ever, a baler can help you to make your recyclable waste a more attractive proposition. Baled waste, particularly mill-sized bales, are simple for recyclers to handle and forward on and therefore much sought after.
Remove whatever you can from your general waste
As a general rule, you should be aiming to reduce whatever material you can from the general waste stream. The best strategy of all is to not generate this waste so don’t overlook the importance of waste avoidance and reuse. However, most accept that the ideal of a ‘zero landfill company’ is still pretty unrealistic for most organisations.
You can however ensure that the general waste you do produce is handled as cost-effectively as possible. Make sure that you have the right bins and the right collection frequency to suit your site. In addition, a general waste compactor will help you to actively reduce these collections and significantly reduce your waste costs.
Invest in equipment
Whilst this may seem a tricky expense to justify, investing in waste handling equipment such as balers, compactors and shredders, could prove to be a sound investment. With waste disposal costs increasing every year and the latest landfill tax increase having hit in April, such equipment will be invaluable.
Yet this needn’t be a capital outlay. Many larger equipment suppliers offer an all-inclusive rental price which allows you to enjoy the benefits without the need to find the initial investment. With no pay-back time, the savings you make will be achieved immediately.
Consult the experts
By speaking to the people in your area who understand the local market and the challenges of waste management you can put yourself ahead of the game. Whether they are equipment suppliers or recyclers, these experts can give you valuable advice and help you find a tailor made solution. When you find a supplier you can trust, don’t be afraid to ask for help.
A good waste management policy will be specific to your company and will considers all the factors that affect and suit your business needs, whatever the economic climate. Yet in uncertain times, focusing on the bottom line and addressing the significant ongoing costs such as waste disposal could turn out to be more productive than you may initially think.
Orwak