Some Plastics End Up in Trash if They Are Not Properly Recycled
Americans have long been educated about the importance of recycling as a means of preserving the environment, but many don’t realize that it’s also a lucrative commodities business. Today, though, companies are seeing their profits dry up due to low crude oil and natural gas prices.
Falling Fuel Prices Cause Dwindling Recycling Profits
Fracking in Texas and other shale-rich parts of the country has resulted in significantly lower fuel prices. Over the past two years, crude oil has dropped nearly 60 percent while natural gas has dropped just over 40 percent. The cost of raw materials is now competitive with recycled materials, and even less expensive in some cases.
Effects on Recyclers and Municipal Clients
Most recycling is done for environmental reasons, so that segment sees no drop-off due to the price changes. Municipalities that count on recycling profits to pay their trash removal costs are bearing the brunt of the downturn.
The second-quarter report from Waste Management, the country’s largest trash collecting company, revealed a $5 million loss in recycling revenues largely caused by lost or renegotiated contracts in several cities. In order to remain profitable, recycling companies are being forced to reduce paybacks to contracted municipalities or even begin charging fees.
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Recycling and trash removal are cumbersome but necessary tasks for every business. Our WasteCaddy dumpster mover lets a single employee easily maneuver waste bins, even up and down inclines or across snow and ice. Visit our website and chat with our sales engineers to find the best solution for your dumpster and material handling needs.