Editor's Focus

RECYCLING’S FUTURE: FOLLOWING THE MONEY

Somewhere in their college years, journalism students inevitably hear the dictum, "follow the money." The words of advice encourage investigative reporters to find out who is writing checks to whom in the worlds of business, politics, government or even charity when they are trying to figure out who owes favors to whom.

But journalists are far from the only ones following the money. Before the "follow the money" phrase was ever coined, an earlier pundit by the name of William Wordsworth observed, "Getting and spending, we lay waste our powers."

Some 200 years after Wordsworth’s time, the vast majority of us still find ourselves dedicating most of our power to getting and spending. Business owners and executives are particularly interested in these two functions, and they are acutely aware that the "getting" process better take in more than the "spending" process sends out.

Recycling advocates have a range of opinions on the profit motive’s place in the recycling scene. On one end of the spectrum, some idealistic recyclers believe government should encourage recycling in all cases, while at the other end are recyclers who believe the less the government is involved with secondary commodities, the better the markets will function on a supply and demand basis.

In North America, western Europe and most of the rest of the world, the reality lies somewhere in between these two end points. The most established markets, such as those for metals and paper, have their origins in place long before the first Earth Day celebration was planned.

Post-Earth Day, paper recycling has grown significantly and several new recycling sectors have grown or emerged, with various degrees of profitability.

There are companies making money in plastics recycling, but in many applications this is still an industry where virgin materials are perceived to hold cost and quality advantages over secondary resins. Tire recycling, many would observe, remains-supply driven, despite the success of companies like GreenMan Technologies (profiled in this issue) in turning a profit. Our cover profile on United Recycling Industries features a company turning the problem of computer and office equipment disposal into a profitable recycling opportunity.

Environmentalists are keen to see high-visibility plastic containers, junked tires and obsolete computers recycled into something useful, and after decades of prodding this market along, there have been some gains. However, it still seems a stretch as of 2002 to consider the recycling of these items as demand-driven.

Interestingly, away from the limelight, some other recyclable materials have had entrepreneurs following the money to recycling success. Although not necessarily targeted by environmentalists, streams of waste concrete and asphalt that once filled inert landfills are now increasingly recycled into secondary aggregates.

Asphalt roadways are almost always recycled—very often in place—while a host of crushing machines recycles a larger share of concrete each year. The success of these segments has been so impressive that landfill operators are being accused of mounting legislative sneak attacks to maintain their share of the disposal market.

The astounding growth of these two recycling segments should give heart to those who worry that capitalists have no interest in recycling. They most assuredly do—as long as there is money to follow in the process.