What role does the recycling industry play in the U.S. economy? Is it significant or not worth the effort? The U.S. EPA through a cooperative agreement with the National Recycling Coalition, recently released the first comprehensive nationwide study on this topic, the U.S. Recycling Economic Information Study. It clearly:
* Shows the investment community that recycling is a viable, established industry with a proven track record.
* Identifies business opportunities for entrepreneurs based on emerging commodity areas and industry sectors.
* Provides recycling and reuse advocates and government agencies with information to build support for the industry.
The study examined economic data from 26 different types of reuse and recycling businesses, from local thrift stores to major paper recycling companies. The U.S. recycling industry consists of over 56,000 businesses that gross some $236 billion in annual revenue. The industry employs over 1.1 million people with a payroll of $37 billion.
As a driver of economic activity, the recycling industry compares favorably to other key industries, such as automobile manufacturing and mining. Recycling far outpaces the waste management industry because it adds value to materials. The industry contributes significantly to job creation and generally pays above the average national wage.
Investing in local recycling infrastructure and strong government policy spurs private sector investment in recycling manufacturing. Accounting firms, office supply companies, and legions more benefit from the indirect impact of the recycling industry to the tune of 1.4 million jobs – a payroll of $52 billion, producing $173 billion in receipts.
And the industry generates roughly $12.9 billion in federal, state, and local tax revenue.
Paper and steel mills, plastics converters, and iron and steel foundries account for over half the economic activity of the industry. New business categories are emerging such as computer demanufacturing, organics composters, plastic lumber manufacturers, pallet rebuilders, and materials exchanges.
Data from 1999 show a 27.8 percent national recycling rate. The EPA has a target of a 35 percent recycling rate by 2005.
Download the report: [sorry this link is no longer available]
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