Increasing Recycling Costs Makes US Cities Stop Recycling

Business

There’s a problem plaguing junk removal Orange County and across the US, as recycling costs are going up across the country. This is an issue as more and more cities across the country are stopping their recycling.

California Treasurer Fiona Ma, one of the states hit the hardest by the increased, says that the recycling movement is currently in a crisis. The crisis is prompted by China, one of the biggest buyers of recycling materials in the world, determined that too much trash was being mixed in with the recyclable materials. Thailand and India are accepting a lot of imported scrap, but they have restrictions.

The issues with the global recycling market has affected American cities in 2018, the problems have only worsened. Thanks to fewer buyers, recycling companies are compensating by increasing their fees, with some charging as much about 4 times compared to before.

The rising costs are making cities and towns considering to have to either raise taxes, cut other services, or abandon recycling programs. Recycle Across America Executive Director Mitch Hedlund says that recycling has been dysfunctional for a while now, but people just didn’t notice when all the waste go to China.

Companies like junk removal Orange County might have some trouble, but the biggest recyclers in the country, like Waste Management and Republic Services, have seen improvement, as recycling tend to be the least lucrative part of businesses, behind hauling and landfills. Analysts say that many waste companies tend to see recycling as a ‘loss leader’, offered only to win over the garbage business in a municipality.

The companies say that sales from plastic and paper aren’t enough to cover costs, which is why they’re raising their fees, both for municipalities and regular customers. Analysts say that the higher recycling fees will help boost the companies’ already large businesses. Waste Management reported increased operational profits in 2018, while Republic also reported increased revenue.

Most of the landfill increases in the industry were due to economic growth; with American consumption going up, junk production goes up in turn. However, analysts warn that some of the higher volume materials were recyclables that could neither be sold or repurposed.