Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    State program revamp proposal advances in Oregon

    Oregon EPR ruling looms: what legal experts think

    Triple-digit revenue gains propel ABTC’s expansion

    LFP batteries gain acceptance. Can they be recycled?

    May pricing bullish for most bales

    August pricing bearish for plastic bales

    End markets, policy key to RPET viability

    PET in focus: Is help on the way?

    Paladin is building a domestic recovery path for rare earths in steel scrap

    Re-Teck opens site in Southeast Asia

    ERI expands global footprint into Vietnam

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    State program revamp proposal advances in Oregon

    Oregon EPR ruling looms: what legal experts think

    Triple-digit revenue gains propel ABTC’s expansion

    LFP batteries gain acceptance. Can they be recycled?

    May pricing bullish for most bales

    August pricing bearish for plastic bales

    End markets, policy key to RPET viability

    PET in focus: Is help on the way?

    Paladin is building a domestic recovery path for rare earths in steel scrap

    Re-Teck opens site in Southeast Asia

    ERI expands global footprint into Vietnam

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Recycling

Market realities hit home in Midwest city

Colin StaubbyColin Staub
January 23, 2017
in Recycling

The City of Columbus, Ohio recently received an indicator of current recycling market struggles, when its yard debris and recycling hauler quoted a price nearly 50 percent higher for the city’s next municipal collection contract.

Rising collection costs are a familiar story around the country, and the notably higher figures submitted by Rumpke Waste & Recycling in Columbus offer a prime example of the reality haulers and their clients face with unstable markets and the continuing rise of some operating costs.

“The past five years have seen very low selling prices for recycling commodities,” Jonathan Kissell, a Rumpke Waste & Recycling spokesman, told Resource Recycling. “Also, we’ve experienced higher costs for processing material, with increases in maintenance costs within our recycling facility and contamination rates.”

Long-standing partnership

Rumpke Waste & Recycling, which operates a number of materials recovery facilities (MRFs) in the region, has worked with the City of Columbus on various recycling efforts dating back to the early 1990s. When Columbus, Ohio’s largest city at about 850,000 residents, began its inaugural citywide single-stream recycling effort five years ago, Rumpke naturally submitted a bid to provide that service.

During the competitive process in 2011, Rumpke beat out two other collectors and signed a five-year contract with the city for recycling and yard waste collection to begin in 2012. The contract totaled about $30.1 million paid to Rumpke over five years, according to city documents.

Last fall, the city advertised a solicitation for bids covering the next five years of yard waste and recycling collection. As first reported by the Columbus Dispatch, Rumpke submitted the only bid, and it was nearly 50 percent higher than its former price: an increase of some $14 million over five years.

The bid document provided to Resource Recycling indicates Rumpke would charge about $44.3 million to continue the city’s current bi-weekly yard debris and recycling collections through 2022. The price is broken in half, with yard debris and recycling collection priced at more than $22.1 million each. About 201,000 households with recycling carts are serviced, the city estimates. Since 2014, Rumpke has collected an average of about 2,800 tons of recycling per month.

The city’s biggest price hit would come immediately: After paying $6.2 million for collection services for the final contract year, which ends in March, the city’s rate would jump more than $2 million to about $8.3 million for the first year of the new contract.

Rising costs, new territory

Rumpke says the price increase takes several factors into account, but it generally reflects a move to balance the cost of performing collection service while continuing to meet customers’ needs.

“To achieve this, we had to account for rising costs, many beyond our control,” Kissell said. He cited market forces as one consideration for the higher bid amount.

Financial statements submitted along with Rumpke’s bid show that company wide revenues from the sale of recyclable materials dropped from $43.4 million in 2014 to $36.9 million in 2015. Those numbers include materials collected and sold across Rumpke’s Midwest operations.

Meanwhile, wage and insurance costs have both increased during the previous five years, Kissell said. Rather than diminish employee benefits, the company elected to pay the higher costs, increasing wages and meeting health care costs in an effort to retain staff.

The last contract was the first of its kind in Columbus, which presented some uncertainty about what the actual cost of collection would be.

“When we bid for the agreement in 2011, we were embarking upon unwritten territory as the City of Columbus did not have a citywide single stream recycling program,” Kissell said. “Our pricing in 2011 was based on estimates, and we underestimated the required work and costs of performing service. We needed additional trucks and more employees working longer hours than expected. Yet we persisted and achieved a 99.9 percent service accuracy rating throughout the five years.”

As for the company’s lack of competition in this bidding process, Kissell pointed out that the process was open to any company and that in general municipal contracts are “extremely competitive” in the region.

According to the Dispatch, the city will not award the bid until after the annual budget is passed, which is expected next month.

A wider trend

Rising collection costs are not unique to Columbus, although other instances generally aren’t as dramatic. Last week, for instance, the Preston County News & Journal reported Waste Management will seek to raise collection rates in nearly a dozen West Virginia counties in order to “recover inflationary increases of operating cost.”

In a report last year, IBISWorld found that “plummeting recycled material prices, along with increased costs for waste transfer resulting from a reduction in the number of landfills, have placed upward pressure on firms’ operating costs.”

Chaz Miller, director of policy and advocacy for the National Waste & Recycling Association, told Resource Recycling a common issue facing the entire industry is figuring out how to manage the risk of fluctuating commodity markets.

“I think, realistically, there’s some uncertainty out there right now,” Miller said. He pointed to the overall decline in commodity prices since the third quarter of 2011. It’s not like the precipitous collapse in 2008, which experienced a relatively quick recovery, but rather a “slow descent,” Miller said. That means while costs do rise, the money coming in is often far more difficult to accurately predict.

“It’s the revenue end that’s the big unknown,” Miller said. “And it’s the revenue end that can and does vary dramatically.”

 

BHS Ousei

Tags: CollectionContracts & ProcurementMarkets
TweetShare
Colin Staub

Colin Staub

Colin Staub was a reporter and associate editor at Resource Recycling until August 2025.

Related Posts

End markets, policy key to RPET viability

PET in focus: Is help on the way?

byAntoinette Smith
August 17, 2026

California market payments progress State-level PCR mandates too new to evaluate India may provide look at future  The past few...

Plastics talking points: Takeaways from Q1 earnings

Plastics talking points: Takeaways from Q2 earnings

byAntoinette Smith
August 17, 2026

Get quick, need-to-know info about what's happening in recycled plastics and beyond, from the most recent investor updates.

May pricing bullish for most bales

August pricing bearish for plastic bales

byAntoinette Smith
August 17, 2026

War-related peaks for post-consumer bale pricing have largely eased, despite continued volatility in crude oil.

What nine years of acquisitions taught Coastal Waste’s CEO

byStefanie Valentic
August 12, 2026

Coastal Waste & Recycling's Brendon Pantano describes the market filters, culture systems and lessons behind growing from 16 employees to...

Audit finds recycling deficiencies across NY

byPaul Lane
August 11, 2026

The state comptroller found inaccuracies and omissions have made it impossible to accurately report how much material is recycled statewide.

Bags of collected agricultural twine for Cleanfarms twine recycling contest

News in Brief: August 10, 2026

byIsabella Burke
August 10, 2026

An Alberta twine recycling contest, Pellitteri expands waste and recycling services into the Milwaukee area and the Canadian government awards...

Load More
Next Post

Cartons hit 60 percent recycling access milestone

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

PureCycle sees easing headwinds to R-PP adoption

PureCycle says H2 outlook already playing out 

August 13, 2026

Two pilot programs in CA recycle commercial film

August 10, 2026
Ron Gonen

Bicameral Truth in Labeling Act introduced in Congress

August 10, 2026
Sabic launches engineered plastic with 75% PCR

Sabic launches engineered plastic with 75% PCR

August 11, 2026

What nine years of acquisitions taught Coastal Waste’s CEO

August 12, 2026
Re-Teck opens site in Southeast Asia

ERI expands global footprint into Vietnam

August 11, 2026
Europe’s recyclers miss most of the critical materials

Market surge expected for plastic from e-scrap

August 10, 2026
A Republic Services truck picks up a recycling cart in Fort Collins, Colorado.

Fort Collins, CO builds a roadmap to zero waste

August 6, 2026
Spinning globe with black background.

ITAD challenges, opportunities vary around the world

August 13, 2026
End markets, policy key to RPET viability

PET in focus: Is help on the way?

August 17, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.