A Respectable Business

When I first started covering the recycling industry more than 20 years ago, it seemed local and state governments treated recycling as a necessary evil. As long as recycling businesses operated in out-of-the-way places, they were tolerated.

However, after the economic collapse that occurred in late 2008 and early 2009, government agencies began recognizing that the recycling industry can be an economic engine that boosts employment and adds to local government coffers.

The industry also makes up a significant component of the overall U.S. economy. By volume, recyclables are among the top exported commodities from the United States, accounting for billions of dollars in trade.

Throughout the past several years, a number of states have reported on the size and scope of the recycling industry within their borders. Recently, the Institute of Scrap Recycling Industries Inc. (ISRI), Washington, D.C., released a report that looks at the overall U.S. recycling industry. The ISRI report estimates that more than 130 million metric tons of paper, plastics, metal, glass, rubber and electronics, valued at more than $77 billion, were recycled in 2010. Also, according to ISRI, the recycling industry employs nearly 110,000 people.

Realizing the industry holds growth opportunities, some state and local governments are attracting recycling companies using various financial packages and incentives.
Governments are not alone in seeing the opportunities recycling offers. The private sector, whether through venture-capital firms or through other investment vehicles, also is realizing the industry’s potential. 

Additionally, the popularity of the recycling industry is allowing some recycling companies to become publicly traded. By becoming public companies, these firms have the chance to increase their size and market capitalization.

While some communities are seeking out recyclers and offering them incentives to locate there, others are resisting these same opportunities.

Part of the reason behind that resistance may be the problem of material theft, which continues to be a major headache for the recycling industry. These high-profile thefts often tar the whole industry with accusations, which truly is unfair and ignores the fact that the industry has taken a number of steps to assist local law enforcement in combating this issue.

However, for those businesses and individuals who have been in the recycling industry for any length of time, it must be somewhat refreshing to be looked at as an economic catalyst and not just an eyesore.