Ameripen study features recycling market development case studies from South Carolina, Michigan

The American Institute for Packaging and the Environment (Ameripen), Washington, hosted a webinar last week to discuss the results of its study, “Economic Impact of State Recycling Market Development Programs: 1990-2023.” The webinar featured comments from representatives of the South Carolina Department of Commerce and the Michigan Department of Environmental Quality, Great Lakes and Energy (EGLE). 

Anna DeLage of the South Carolina Department of Commerce and Matthew Flechter of EGLE said stable funding on a national level was necessary for the success of recycling market development programs. 

As previously reported by Recycling Today, Ameripen’s study finds recycling market development centers have a beneficial effect on recycling-related industries in a state’s economy. These programs connect state resources, such as environmental and commerce departments, with private sector parties to advance recycling efforts. The study shows also that public-private recycling market development efforts have generated approximately 1 million jobs and have had an economic impact of more than $89 billion since 1990. South Carolina and Michigan were featured as case studies in the report.  

The Recycling Market Development staff at the South Carolina Department of Commerce provides business matchmaking support, administers materials management consultation, works with existing and emerging markets for materials and tracks the economic impact of the recycling industry. 

“We focus on existing industry [and] bringing companies into the state where we're seeing gaps or where we need opportunities, particularly as it relates to recycling,” said DeLage, recycling market development manager at the South Carolina Department of Commerce.  

South Carolina is home to more than 300 recycling companies, including collectors, processors, recycled product manufacturers and equipment makers. The Ameripen study finds the economic impact of recycling in South Carolina exceeds $13.6 billion and can scale up employment at a higher rate than the average South Carolina industry, with an employment multiplier of 2.4. 

In 2022, 10 recycling companies announced $4.2 billion in investments, which the South Carolina Department of Commerce’s Recycling Market Development Advisory Council said created 1,852 new jobs. 

“This study really is so helpful for us because it shows that these centers are making an impact all across the country,” DeLage said. 

Michigan established the Renew Michigan Fund to support materials management within the state and to obtain a 45 percent recycling goal. According to the Ameripen study, the economic impact of tripling the recycling rate to 45 percent is expected to create 138,000 new jobs and provide $9 billion in annual labor income and $33.8 billion in economic output.  

In 2019, EGLE developed the accelerator program, NextCycle Michigan, through Renew infrastructure grants to support the development of new end markets for materials.  

“In Michigan, we can't do this work just on the backs of state government and state government funding,” said Flechter, recycling market development specialist at EGLE. “NextCycle Michigan really provides us a platform to provide data and analysis to teams that are working to grow Michigan's circular economy.” 

Flechter and DeLage said stable funding for recycling market development programs is paramount. 

“Stable funding for these programs is absolutely critical,” DeLage said. “I'm so excited that the report reflects that.” 

DeLage said that if funding works, then further funding from the United States Environmental Protection Agency (EPA) could be the path forward. The Ameripen study says recycling market development saw its first wave of momentum in the early 1990s with the EPA’s “Recycling Means Business” strategy, creating jobs through support of recycling businesses.  

“I know to be successful, it's not about just a state doing this work,” Flechter said. “I need Indiana and Ohio to do the same work and have the same data and have a stable funding mechanism. … That's how we can create a system that's going to be sustainable long term. … It's only EPA that can do that because they're thinking about the nation as a whole.” 

Ameripen’s full study, including more information about the South Carolina and Michigan case studies, can be found here.