Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    smart glasses

    ITAD’s big wearables challenge

    Partnership ups quality control on device-sales platform

    Certification scorecard — week of Oct. 5

    Industry announcements for January 2026

    Industry announcements for October 2026

    Paladin acquires R&L Recycling, enters European ITAD market

    Following the money in hardware circularity

    SK Tes on track to meet 2030 ITAD goal

    SK tes’ sustainability report offers window into ITAD

    Our top stories from February 2023

    ADS flexes new recycling capacity against resin spikes

  • 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
    smart glasses

    ITAD’s big wearables challenge

    Partnership ups quality control on device-sales platform

    Certification scorecard — week of Oct. 5

    Industry announcements for January 2026

    Industry announcements for October 2026

    Paladin acquires R&L Recycling, enters European ITAD market

    Following the money in hardware circularity

    SK Tes on track to meet 2030 ITAD goal

    SK tes’ sustainability report offers window into ITAD

    Our top stories from February 2023

    ADS flexes new recycling capacity against resin spikes

  • 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

MRF operator details life amid “the perfect storm”

Lacey EvansbyLacey Evans
July 25, 2016
in Recycling

bottles and cans / Gigira, ShutterstockShould curbside recycling be treated like other utilities that send customers a bill every month? And what effects will potential minimum wage increases have on materials recovery facilities?

Those were two of the topics discussed during a recent webinar called “The Perfect Storm: Economic Impact of Changes in the Recycling Industry.”

Hosted by the National Recycling Coalition and Pennsylvania Recycling Markets Center, the webinar featured Robert Anderson, regional business development manager at MRF operator ReCommunity Recycling.

ReCommunity is a North Carolina-based company that currently operates 28 materials recovery facilities throughout the eastern U.S.

Changes in composition of stream

Anderson laid out the specific ways a shifting materials stream, depressed markets and high curbside contamination are affecting the economics of materials processing.

When it comes to the modern materials mix, Anderson said aluminum cans and PET and HDPE bottles are all lighter than they were decades ago. In fact, the weight of a PET water bottle decreased 32 percent between 2000 and 2008.

That means it takes more units to make up a ton, specifically, 10,460 more 16-ounce PET bottles today than in 1980, according to Anderson.

Flexible and bio-based packaging are other examples of source reduction being not so positive for processors. Every 1.5 pounds of flexible plastic packaging replaces six pounds of rigid PET, Anderson said.

It’s not just goods and products that are changing how MRFs operate. News consumption has gone digital, which means there are fewer newspapers for processors to recycle. In 1990, 70 percent of American households received a daily and Sunday newspaper. In 2010, that number shrank to 40 percent. In the year 2000, 15 million tons of newsprint was used. In 2012, that number dropped to 8 million.

Anderson noted residue rates in MRFs have increased between two and three percentage points. Specifically, local programs are seeing an increase in food waste and diapers in the recycling bins.

Rising labor and processing costs

According to Anderson, MRFs are losing money because of lost productivity due to slower throughput, higher residue rates and increased downtime. He said all of that combined can cost a typical MRF nearly $100,000 per month.

Adding to the profit complications is the fact that many states and cities are considering increases to their minimum wages, some to $15 an hour.

Anderson said a wage increase of 50 cents per hour can raise processing costs by $3 a ton. MRFs have a high number of entry-level workers, so processors are hit hard by this. He admitted a higher wage has advantages, like attracting and retaining quality staff, but, he said the cons outweigh the pros.

All those economic forces have hit MRFs hard, and Anderson said the industry’s current business model isn’t working. Due to depressed prices for many commodities, specifically oil, MRFs are no longer making enough money to cover the cost of processing.

He also noted China has instituted higher quality standards, which means MRFs must produce a cleaner product from a complicated materials stream. More sorting can mean slower speeds or more staff – or both.

Anderson said the industry needs structural change and that the people who are using the system are going to have to fund it. The traditional business model was built on the fact that commodities could be sold at a higher price than the cost of processing. That’s not true anymore, he said.

According to the presentation, a dollar a month paid by each household served in a given jurisdiction would equal $48 per ton to help offset costs. Anderson said fees imposed directly on customers could be seen as nominal, especially when compared to other monthly bills like internet and cable.

Bottom line, according to Anderson: Recycling processors have base costs and they are entitled to a profit.

TweetShare
Lacey Evans

Lacey Evans

Lacey Evans was a staff writer at Resource Recycling, Inc. until January 2017.

Related Posts

Panelists discuss construction waste reuse at the NERC conference in New Jersey October 7, 2026.

Ramping up reuse of construction materials

byBrian Clark Howard
October 8, 2026

Construction and demolition produces a lot of waste, but reuse can make a big dent in that, panelists at the...

Women in Circularity at the E-Scrap Conference

Women in Circularity at the E-Scrap Conference

byMaryEllen Etienne
October 8, 2026

Editor’s note: Join the free Women in Circularity Roundtable Breakfast at our 2026 E-Scrap Conference, Oct. 26-28 in New Orleans....

smart glasses

ITAD’s big wearables challenge

byDavid Daoud
October 8, 2026

Wearable technology is a fast-growing sector, but is the asset disposition industry ready to handle it?

University at Buffalo Professor John Atkinson (right) speaks at the NERC conference in New Jersey.

Improving recycling access for underserved communities

byBrian Clark Howard
October 7, 2026

Panelists at the NERC conference in New Jersey talked about solutions to recycling access, from grants to research to technology...

Partnership ups quality control on device-sales platform

Certification scorecard — week of Oct. 5

byPaul Lane
October 7, 2026

The following facilities have achieved, renewed or otherwise regained industry certifications.

Trade-in firm reports higher values for used phones

Device trade-ins increase amid newest iPhone release

byPaul Lane
October 7, 2026

Some in the second-hand marketplace won’t see the full impact until well after the Duo foldable phone releases later this...

Load More
Next Post
In other news: March 23, 2016

In other news: July 26, 2016

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

GM launches recycled EV battery line

GM launches recycled EV battery line

October 5, 2026

SC Johnson CEO: Recycling needs policy fix

October 5, 2026
plastic bale

Underreported sales may cost bottle bill states up to 40%

October 5, 2026
APR, PROs appeal to Ottawa for help

APR, PROs appeal to Ottawa for help

October 6, 2026
Our top stories from February 2023

ADS flexes new recycling capacity against resin spikes

October 1, 2026
Women in Circularity: Sanyukta Saptasagar

Women in Circularity: Sanyukta Saptasagar

September 29, 2026

How EPR and policy is reshaping WM’s facilities

October 5, 2026
How to perform chip harvesting

How to perform chip harvesting

October 1, 2026
Usefull reusable dining container at SEEC cafe at the University of Colorado Boulder.

CU Boulder launches dining reuse program

October 5, 2026
Domestic e-plastics recovery picks up pace 

Domestic e-plastics recovery picks up pace 

September 30, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazines

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletters

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
  • Magazines
  • 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.