Land of Waste – American Landfills & Waste Generation


The average American tosses 4.4 pounds of trash every single day. It may not seem all that astonishing on the surface, but with 323.7 million people living in the United States, that is roughly 728,000 tons of daily garbage – enough to fill 63,000 garbage trucks.

That is 22 billion plastic bottles every year. Enough office paper to construct a 12-foot-high wall from Los Angeles to Manhattan. It is 300 laps around the equator in paper and plastic cups, forks, and spoons. It is 500 disposable cups per average American worker – cups that will still be sitting in the landfill five centuries from now.

Approximately half of the 254 million tons of yearly waste will meet its fate in one of the more than 2,000 active landfills across the country – and you probably live, work or socialize closer to one than you may think.

How Close Is Too Close? 

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Click HERE to find out!

The easiest way to know you’re living near a landfill is by smelling it, right? Wrong.

The easiest way to know you’re living near a landfill is by smelling it, right? Wrong.

The United States is home to thousands of inactive landfills – and some have found new life and purpose as public parks.

But most are out of sight, out of mind. The West Coast is practically overflowing with landfills: There are a dozen in the Los Angeles area alone, though most are now closed. New Yorkers hailing from Manhattan, Brooklyn, Bronx, and Queens have no problem beating up on Staten Island, a borough practically built on top of what used to be the world’s largest garbage dump.

Even the Sunshine State isn’t immune to taking some of the load. Landfills linger in the heart of Miami and West Palm Beach, though they pale in comparison to the dump deluge in Tennessee and the Carolinas.

A Tale of Thousands of Dumps

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Landfills have a long and relatively unsorted history. Before the first municipal dumps appeared on the map in the 20th century, humans either burned their garbage or buried it on the outskirts of town to avoid disease. The circa 1937 Fresno Municipal Sanitary Landfill is considered the first modern, sanitary landfill of its kind, and future landfills followed suit.

At first, they weren’t much more than man-made craters in the earth – a dramatic step up from the first municipal dump established in ancient Athens but still pretty crude. They were environmental disasters, leaching contaminated liquid into the soil and groundwater, and releasing overwhelming amounts of methane into the air.

The 1976 Resource Conservation and Recovery Act changed all of that. The law requires landfills to be lined with plastic, clay or both, effectively killing the old idea of a “dump,” or those old-school craters.

The Landfill Evolution

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Over the last hundred years, the number of dumps and landfills has dramatically increased across the country – as seen in the time lapse above – to accommodate the growing population’s garbage disposal needs.

That’s a Ton of Trash

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Las Vegas may be the city of sin, but its home state Nevada is the land of garbage, with a whopping 38.4 tons of waste per person in its landfills.

Idaho, North Dakota, and Connecticut are the only three states in the country with less than 10 tons of landfill waste per person – putting Pennsylvania, Colorado, and California to shame, with their average of 35 tons of landfill garbage per person.

That’s not to say that these state residents are necessarily producing all of this landfill waste themselves. The trash trade is a $4 billion industry, and many state landfills are only too happy to take garbage from other states.

Transport fees are cheapest in the South and Midwest – as low as $19 per ton in states like Alabama. Ohio, for example, is famous for accepting as much as 3.4 million tons of out-of-state waste per year, to the tune of $35 per ton. The most offensive giver of trash was New York, accounting for nearly 32 percent of Ohio’s out-of-state total, with New Jersey not far behind.

Landfill Gases, a Top Concern

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Landfill gas is a dangerous, virtually invisible concoction generated in the most natural way possible: the bacterial decomposition of organic material. The result is half methane and half carbon dioxide and water vapor, with trace amounts of oxygen, nitrogen, hydrogen and nonmethane organic compounds, or NMOCs, which can cause smog if uncontrolled.

In the past, environmentalists have been more concerned by carbon dioxide emissions, but now, they are worrying about methane. Even though methane doesn’t linger as long as carbon dioxide, it is far more effective at absorbing the sun’s heat and contributing to global warming. For the first 20 years after it meets the atmosphere, methane is 84 times more potent as a greenhouse gas than carbon dioxide.

The population-heavy states of California and Texas are currently facing the greatest problem with landfill-produced methane, but the repercussions of this problem could eventually affect the entire world.

Visualize Your Garbage

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It can be hard to wrap our minds around the impact of our waste in terms of landfill gas and metrics that stretch into the billions. So let’s scale it down.

Your 4.4 pounds of daily trash is approximately the weight of a modest-sized pumpkin that you would carve on Halloween. Add up all those “pumpkins” over the seasons and they come in at 1,606 pounds – or the size of your average cow. But if you pack that trash into cubed feet, you’re looking at the height of the Leaning Tower of Pisa.

The waste tally for a family of four is even grimmer. That yearly haul weighs as much as an Asian elephant and stacks up to the height of the Golden Gate Bridge.

Think that’s bad? The annual weight of trash for the entire country equals 254 million tons, or 1.2 million blue whales, and would reach the moon and back 25 times, a journey of 11,534,090 miles.

Not all hope is lost, though. Keep reading to learn about how you can cut back on your waste.

Going Green

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Now, more than ever, Americans are hopping on the recycling bandwagon. Last year marked the all-time high for recycling: 34.3 percent of our garbage, or 87.2 million tons, could have ended up in a landfill but didn’t. Bravo, America!

But though recycling has increased in recent years, so has trash generation. More than 60 million plastic bottles still find their way to landfills and incinerators on a daily basis. Six times as many water bottles were thrown away in 2004 than in 1997.

Clearly, there is still work to be done. And you can make a difference.

Conclusion

Whether we are a running out of landfill space in America is a hotly debated topic, but that doesn’t mean we should produce garbage like there is no tomorrow. Here are some tips to help reduce your personal waste:

  • Bring reusable bags when you go shopping, and choose reusable containers for packing meals.
  • Buy in bulk whenever possible. Beware of double packing – or individually wrapped items that are repackaged and sold as bulk.
  • Compost your food scraps and yard waste whenever possible.
  • Cut back on junk mail – you receive more than 30 pounds of it per year.

Methodology

We analyzed the EPA’s Greenhouse Gas Reporting Program data on landfills to determine the per capita waste in tons for each state. We also looked at the total sum of landfill gasses by state. For the graphic titled “Visualizing the Impact of Our Waste,” we used the EPA’s average estimate of 4.4 pounds of trash produced per person per day to calculate the yearly waste average per person, per family of four, and for the entire United States.

To calculate the height of the waste tallies, we assumed that loose residential waste weighs 225 pounds per cubic yard, and converted this to square footage. To compare these heights and weights with real world animals and objects, we used http://www.bluebulbprojects.com/measureofthings/.

Sources

Fair Use

You can share the images on this page freely. But please give credit to the authors by linking back to this page, so your readers can learn more about this project and the related research.

Information provided to you by WIH Resource Group, Inc

Contact WIH Resource Group
For more information, Visit our website by CLICKING HERE and contact us today to see how we can best serve you by phone at 480.241.9994 or by e-mail at admin@wihrg.com

Visit our new website!   www.wihresourcegroup.com

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ABOUT WIH RESOURCE GROUP

Celebrating a decade in business, WIH Resource Group is a global provider of professional technical and management support services to a broad range of markets, including waste management, recycling, financials, transportation, M&A due diligence and support, alternative fuel fleet conversions, facilities, environmental, energy for private sector business and government clients.

WIH Resource Group is a leader in all of the key markets that it serves. WIH Resource Group provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural and social environments.  WIH Resource Group serves clients in more than 175 key markets internationally.

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More information on WIH Resource Group and its services can be found at www.wihrg.com.

Click on an image below to take you to WIH’s other sites!

California Recycling Levels Fall Below 50% for First Time in Years


California’s overall recycling rate fell to 47 percent in 2015, below the 50 percent or better rates achieved since 2010, and far short of the 75 percent goal set by the legislature for 2020. That is a decrease of 3 percent from both 2014 and 2013, according to newly-released data from California Department of Resources Recycling and Recovery (CalRecycle).

CALRECYCLES

News of the lower recycling rate comes as hundreds of recycling centers around the state have closed over the past year as the economics of recycling have been turned on its ear in California. RePlanet, which closed nearly 200 recycling centers itself earlier this year, said the state reduced fees it pays to recycling centers to handle all those plastic bottles and other containers.

Teresa Bui, a legislative and policy analyst with Californians Against Waste, said “Recyclers across all industries are hurting. The low commodity prices for paper, plastic and metals are all driven by low oil prices. It’s cheaper to by virgin materials to make new PET bottles than purchase recycled PET.” Ironically, economic growth in the state burdens the system with more waste generation resulting in higher amounts of material heading to the landfill instead of being recycled.

FULL PRESS RELEASE FROM CALRECYCLES – June 24, 2016

California Recycling Levels Fall Below 50% for First Time in Years

California’s overall recycling rate fell to 47 percent in 2015, below the 50 percent or better rates achieved since 2010, and far short of the 75 percent goal set by the legislature for 2020.

The newly-released data from California Department of Resources Recycling and Recovery (CalRecycle) shows that disposal amounts increased by 2 million tons in 2015 compared to 2014, resulting in more waste, higher costs and an additional 200,000 tons of direct greenhouse gas emissions.

“At a time when Governor Brown and State Policy Makers are receiving deserved recognition for the adoption of many Nation-leading policies to reduce pollution and protect the environment, the downturn in the State’s recycling efforts stands out as an embarrassing blemish,” said Mark Murray, Executive Director of the environmental group Californians Against Waste.

Contributing to the recycling drop are low commodity prices, closed recycling centers and cheap disposal alternatives. The low commodity prices for paper, plastics and metals are driven by low oil prices, which in turn makes processing and producing virgin materials from natural resources appear to be cheaper.

Low commodity prices have resulted in the closure of more than 662 recycling centers in California over the last 12 months, with potentially hundreds more closing after July 1, unless urgency legislation is enacted to restore recycler reimbursements to 2015 levels.

In addition to low commodity prices, recyclers and composter must also compete with artificially low priced disposal options that fail to incorporate their true environmental and regulatory costs.

While new policies have been adopted in an effort to increase recycling (including requirements for businesses to recycle and compost), sporadic enforcement, under investment and slow implementation have undermined program effectiveness and failed to offset increased consumer consumption of disposables.

“It’s been more than a quarter century since California policy makers committed to cutting waste disposal in half, and for most of that period consumer support, manufacturer responsibility, and targeted investment all contributed to achieve 50 percent or better recycling levels,” said Murray.

“But increased fracking and continued taxpayer subsidies for non-renewables and cheap disposal have created and uneven playing field for market-based recycling and composting efforts,” said Murray.

“California’s recycling future is at a crossroads. Greater attention and investment, and updated regulatory scheme is needed to ensure that the California does not backslide on the great environmental and economic strides that have been made to conserve and recycle finite resources.

“It is time for Governor Brown and the legislature to come together to develop a framework that puts California back on the path to sustainable materials management. We have over a quarter century of experience to help us identify which policies and programs have proven successful in the past and should be replicated or expanded.

“We need to ensure that that the economic incentives and regulatory requirements support the growth of recycling, composting, and recycled material-based manufacturing or suffer the consequences increased disposal and taxpayer costs, and a degraded environment.”

Californians Against Waste is a non-profit organization dedicated to conserving resources, preventing pollution and protecting the environment through the development, promotion and implementation of waste reduction and recycling policies and programs.

Contact: Brendan Ward
brendanward@cawrecycles.org
(916) 443-5422

Source: CalRecycles and WIH Resource Group, Inc

Contact WIH Resource Group
For more information, Visit our website by CLICKING HERE and contact us today to see how we can best serve you by phone at 480.241.9994 or by e-mail at admin@wihrg.com

Visit our new website!   www.wihresourcegroup.com

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ABOUT WIH RESOURCE GROUP

Celebrating a decade in business, WIH Resource Group is a global provider of professional technical and management support services to a broad range of markets, including waste management, recycling, financials, transportation, M&A due diligence and support, alternative fuel fleet conversions, facilities, environmental, energy for private sector business and government clients.

WIH Resource Group is a leader in all of the key markets that it serves. WIH Resource Group provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural and social environments.  WIH Resource Group serves clients in more than 175 key markets internationally.

WIH Website logo

More information on WIH Resource Group and its services can be found at www.wihrg.com.

Click on an image below to take you to WIH’s other sites!

 

Top 5 Reasons Why an Expert Witness Will Help Your Case


While there are plenty of respectable reasons why experts can make or break a court case, the most convincing benefit has to be the expert witness testimony they will provide. We have broke down the top five reason why expert witnesses are truly invaluable to a trial in ways that other methods simply cannot be merit the effectiveness of an expert witness.

WIH Resource Group - Expert Witness Services.pngAn expert witness, professional witness or judicial expert is a witness, who by virtue of education, training, skill, or experience, has expertise and specialized knowledge in a particular subject beyond that of the average person, sufficient that others may officially and legally rely upon the witness’s specialized (scientific, technical or other) opinion about an evidence or fact issue within the scope of his expertise, referred to as the expert opinion. Expert witnesses may also deliver expert evidence about facts from the domain of their expertise.

Reason One – Expert Witnesses Have Historically Worked in Similar Cases.

It’s absolutely true – in courtroom jury trials, testimony from an expert witness almost always helps represent the facts in an accurate, clear way that the jury will understand. Sometimes, such as with complicated toxicology cases, getting the facts across and proving the point is especially difficult because of complex medical jargon and technical speak. Expert witness testimony is convincing and persuasive because it gets through to the jury.

Reason Two – An Expert Witness Can And Does Achieve Settlements.

If the ultimate goal of the legal proceedings is to achieve a fair and reasonable settlement rather than drag the case through years of litigation and complicated court proceedings, then it is probably worth consulting with an expert witness in this scenario too. Many times, just the knowledge that a true expert professional will be testifying in court is enough to convince the other party to settle the case out of court.

Reason Three – Expert Witnesses Help Either Side Of The Case.

The common perception is that only defense legal teams choose to work with expert witness testimony by hiring expert witnesses. Unfortunately, this is nothing but a misconception. Both defense and prosecuting legal teams should be aware of the benefits an expert witness is able to provide to either a Defendant or Plaintiff case. Anytime a certified professional can make the facts speak more clearly, there’s a strong argument for using expert witness testimony.

Reason Four – An Expert Witness Can Offer More Than A Simple Testimony.

Receiving expert witness testimony is only one part of hiring an expert witness. Or in other words, the testimony itself is extremely valuable, but an experienced, professional expert witness also understands how to explain complex issues in a clear and scholarly founded manner.

If the ultimate goal of the legal proceedings is to achieve a fair and reasonable settlement rather than drag the case through years of litigation and complicated court proceedings, then it is probably worth consulting with an expert witness in this scenario too. Many times, just the knowledge that a true expert professional will be testifying in court is enough to convince the other party to settle the case out of court.

Reason Five – Qualified Experts, like WIH Resource Group, Offer Insight.

Even if expert witness testimony in and of itself will not be necessary, qualified expert witnesses can indeed provide the insight and vision needed to ensure a positive outcome through litigation, due diligence, expert witness report, arbitration and mediation support. Consulting with the witness to understand their point of view, as well as to benefit from their experiences with similar cases can be invaluable.

Source: WIH Resource Group

Contact WIH Resource Group
For more information, Visit our website by CLICKING HERE and contact us today to see how we can best serve you by phone at 480.241.9994 or by e-mail at admin@wihrg.com

Visit our new website!   www.wihresourcegroup.com

wihwebsite

ABOUT WIH RESOURCE GROUP

Celebrating a decade in business, WIH Resource Group is a global provider of professional technical and management support services to a broad range of markets, including waste management, recycling, financials, transportation, M&A due diligence and support, alternative fuel fleet conversions, facilities, environmental, energy for private sector business and government clients.

WIH Resource Group is a leader in all of the key markets that it serves. WIH Resource Group provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural and social environments.  WIH Resource Group serves clients in more than 175 key markets internationally.

WIH Website logo

More information on WIH Resource Group and its services can be found at www.wihrg.com.

Click on an image below to take you to WIH’s other sites!

Renewable Portfolio Standards drive the waste-to-energy industry


There is one single, constant driver that can propel the WTE industry forward or hold it back, and that’s renewable portfolio standards (RPS). These RPS’s are policies in 29 states and Washington, DC to increase renewable energy, usually from wind, solar, biomass, and sometimes landfill gas and municipal solid waste.

USA Renewables by State

How much capital is allocated to each of these sources depends on what “tier” within the RPS it is placed. Tier 1 generates more revenue than tier 2, allowing WTE technologies in this higher category to compete with solar and wind, which are the energy-producing forerunners right now. While biomass, biogas, and other WTE grew by 15% since 2008, wind grew by 65% in 2014 alone.

Then there is a market driver at the federal level: the Public Utility Regulatory Policy Act (PURPA). The law requires utilities to buy electricity from a qualified facility, but to only pay what it would cost the utility to produce that electricity.

“So they pay a relatively small amount, which rarely pencils out for renewable energy producers,” said Brian Lips, DSIRE project manager at North Carolina Clean Energy Technology Center. “But the RPS places [renewable energy producers] in a position where they don’t have to compete with fossil fuels; rather they compete against other renewables.”

Sometimes biomass, one of the more widely used WTE sources, is in tier 1 on the RPS. But what counts as biomass gets tricky as there is no standard definition; so feedstocks under this umbrella vary but could include organic materials like trees, crops, and animal waste.

How Maryland pays out for trash-to-energy

One state standing out on the WTE front is Maryland, the only state in the country that places trash-burning incinerators in tier 1, according to Energy Justice Network Founder and Director Mike Ewall. This incentive drew New York-based Energy Answers International to Baltimore, where it got a permit in 2010 to build what would have been the largest incinerator in the country — one that environmentalists vehemently protested, arguing the emissions would threaten public health.

Just last week, following a long, hard fight between Energy Answers and its opponents, Maryland announced that the incinerator project is no longer valid, stating the permit became void after an extended construction delay.

Some states have left trash incineration out of the RPS altogether, such as New York, which only allows the burning of biomass. However, that state is subsidizing crop burning. “Rarely can you make it work to grow crops just to burn them; it’s too expensive. But New York and Iowa have burned grass and or trees for electricity,” said Ewall.

Meanwhile, commercial scale trash-burning incinerators seem to be fading from the landscape. One to be built in West Palm Beach will be the first such plant launched in 20 years, at least on a new site. Many others are shuttering or at risk of closing, with the number currently in operation having fallen under 80 for the first time in decades, largely because of their cost.

Introducing more energy sources to the playing field

In quest of new options, Pennsylvania, Ohio, and West Virginia have put fossil fuels in their RPS, bringing a whole new category onto the playing field. “They are the first ones [and only ones] to do this,” said Ewall. He added that Ohio has put nuclear in their portfolio in addition to fossil fuels. And a fairly new industry direction is to pelletize trash and market it to existing boiler plants for energy.

Some of the growing options — and their price tags — are sparked by regulations mandating the amount of electricity that utilities must derive from renewable resources.

“In California where 50% of energy has to come from renewable sources, utilities may pay more. But in North Carolina where just 12.5%  has to be renewable, utilities have more bargaining power,” explained Lips.

The renewable energy market is particularly strong in New Jersey, and Hawaii has the most ambitious goal in the country: 100% renewable energy by 2045, he said. The island state has two motivators: outrageously high electricity rates as it burns imported oil, and its vast renewable energy resources.

How the Federal Clean Power Plan is driving state policies

More change may be on the horizon if EPA’s Clean Power Plan unfolds. It’s part of Obama’s push, claimed to curb greenhouse gas emissions from fossil fuel and coal-fired power plants, which would allow for natural gas and renewable energies such as biomass, incineration, and natural gas.

Analysts project this law will be a major market driver, and it’s already proving to be, at least in the natural gas front. There are about 300 proposals for gas-fired plants in the United States now, according to Ewall.

“Most were underway before EPA adopted the plan. But they were [further] fueled by the rule. So Clean Power would be a major driver to push for natural gas,” he said.

Source: Waste Dive

Published by WIH Resource Group

Visit our new website!   www.wihresourcegroup.com

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ABOUT WIH RESOURCE GROUP

Celebrating a decade in business, WIH Resource Group is a global provider of professional technical and management support services to a broad range of markets, including waste management, recycling, financials, transportation, M&A due diligence and support, alternative fuel fleet conversions, facilities, environmental, energy for private sector business and government clients.

WIH Resource Group is a leader in all of the key markets that it serves. WIH Resource Group provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural and social environments.  WIH Resource Group serves clients in more than 175 key markets internationally.

WIH Website logo

More information on WIH Resource Group and its services can be found at www.wihrg.com.

Click on an image below to take you to WIH’s other sites!

WIH Resource Group Launches New Dynamic Website


Phoenix, AZ — March 28, 2016—WIH Resource Group, Inc. (http://wihrg.com/) has kick-started its 2016 marketing campaign with a new, vibrant, and fully revamped and informative website.   “We’ve worked hard to deliver a website that can inform and inspire across our diverse client base and we are delighted with the results. We hope it answers a lot of the questions that we are commonly asked, and goes a long way to demonstrating the firm’s capabilities, expertise and experience” said Bob Wallace, President and Founder of WIH Resource Group.

wihwebsite

WIH Resource Group was founded in 2005 and is renowned for its exemplary service and industry individuality. Wallace explains, “We are a professional, innovative organization that focuses on giving our clients a high-quality, personalized customer experience and we want that level of care to remain synonymous with the WIH Resource Group name.”

“Our broad range of services allows us to offer our clients a full service package. We wanted a new website that reflects our professionalism, specifies our accreditations, introduces our exceptional team and gives some insight to our current clients, our meaningful partners, and our diverse areas of expertise. We’ve more than met that in the new website, which sums up the WIH Resource Group ethos perfectly.” said Wallace.  It also features downloadable Industry White Papers http://www.wihrg.com/onlinestore.html

About WIH Resource Group

WIH Resource Group is an American based leading global independent provider of environmental, waste management, recycling, transportation, financial and logistical solutions.  The company also provides its clients with strategic consulting solutions in alternative vehicle fuels, fleet management, operations, M&A transactional support, surveying and polling, collection vehicle route auditing, expert witness and transportation matters for corporations, federal, state, and local government clients.

WIH looks to establish long term relationships with their clients where they are called upon regularly to assist in developing viable and sustainable solutions.

For additional information, visit the new website http://wihrg.com/

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How Banning Food Waste from Landfills Affects the Industry


As a way to reduce the amount of waste sent to its landfills, Maine legislators have begun looking for ways to require composting for food and other organic wastes.

Food Waste - WIH Resource GroupOriginally included in LD 1578, sponsored by Sen. Tom Saviello, (R-Wilton), a mandate required those producing more than one ton of food waste to divert it from landfills by sending it to a composting facility within 20 miles. But Maine officials will have to find other ways to divert food waste because the mandate was recently removed from the bill.

“It had nothing to do with the merits of the proposal itself. It was more political. There was fear that including a ‘mandate’ in the bill would make it difficult to pass, and would definitely prompt a veto,” says Sarah Lakeman, Sustainable Maine Project director for the Natural Resources Council of Maine. “This was an omnibus waste bill, so they took it out to preserve the rest of the bill that they had a better chance of passing. The committee also thinks that they can bring it back for consideration in 2017 as its own bill. The start date of the ban wasn’t until 2020 anyway, so even with the delay in enactment, it could still start at the same time or sooner.”

Although Maine may have to wait until next year to decide the fate of food waste, the idea behind the ban raises some questions within the waste and recycling industry.“The original intent was to urge the largest producers of food waste to stop wasting; which would in turn help spur development in composting infrastructure in Maine,” says Lakeman. “We have adequate infrastructure now, but we need to expand it to make it more cost effective for everyone to participate. Particularly by lowering or sharing in transportation costs, and decreasing the distance traveled to a composting facility.”

Michael Van Brunt, director of sustainability for Morristown, N.J.-based Covanta Energy, says that states look to these types of bans to reuse, recycle and repurpose food waste and other organics to generate clean energy and rich, fertile compost, instead of wasting it in landfills.

“Diverting food wastes from landfills will require an investment in infrastructure, suitable time to implement, and an appropriate regulatory system to ensure compliance,” he says. “However, local and state policies can provide the impetus to facilitate food waste diversion. States like Vermont, Connecticut, California and Massachusetts have all adopted policies aimed at increasing food waste diversion, focusing first, like the Maine proposal, on large generators of food wastes. The European Union’s Landfill Directive, which reduced the amount of biodegradable waste going to landfills, has significantly contributed to the growth of sustainable waste management: more recycling, composting and energy recovery, and far less landfilling.”

Van Brunt also says he thinks banning food waste from landfills would have a positive impact on the waste and recycling industry.

“The most common alternatives for landfilling food waste are composting and anaerobic digestion, both of which are considered recycling when the residues are reused as compost or fertilizer. Banning food waste from landfills may also have the impact of reducing waste and possibly encouraging food reuse programs, even better than recycling,” he says.

“There is also the added benefit of avoiding significant greenhouse gases that are generated when food waste biodegrades in landfills,” he adds. “Reducing the amount of food waste deposited in landfills can significantly reduce the generation of methane a highly potent greenhouse gas, 34 times more potent than CO2 over 100 years, and more than 80 times as potent over a shorter 20 year time frame. Methane is a short lived climate pollutant, increasingly a focus of international action to reduce GHGs. In fact, the White House announced a strategy to reduce methane emissions two years ago that specifically targeted diverting food wastes from landfills.”

Source: Waste360

Published by WIH Resource Group

ABOUT WIH RESOURCE GROUP

Celebrating a decade in business, WIH Resource Group is a global provider of professional technical and management support services to a broad range of markets, including waste management, recycling, financials, transportation, M&A due diligence and support, alternative fuel fleet conversions, facilities, environmental, energy for private sector business and government clients.

WIH Resource Group is a leader in all of the key markets that it serves. WIH Resource Group provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural and social environments.  WIH Resource Group serves clients in more than 175 key markets internationally.

More information on WIH Resource Group and its services can be found at www.wihrg.com.

Click on an image below to take you to WIH’s other sites!

Five Commandments for Down Recycling Commodity Markets


The accumulated wisdom of scrap recycling veterans leads to five important rules to help cope with difficult market conditions.

By Brian Taylor, Editor – Recycling Today

 

 

 

Illustration: Matt Collins

 

Scrap recycling company owners and managers live in a workday world in which changes can occur suddenly or, conversely, in which a distressed market can linger far longer than what is tolerated in many other sectors.

Industry veterans, thus, are not greatly surprised when prices drop sharply and stay low for an extended period, and likewise they have seen previous stretches where material generation goes into an extended slump.

The ability for a company to survive an extended downturn takes not just experience and knowledge, industry veterans say, but also discipline and foresight.

An entire management book could be written based on the accumulated knowledge possessed by recyclers who have weathered three or more market downturns of the sort that have put some of their competitors into receivership.

For the purpose of trying to distill some of that same knowledge into a format that can fit into a magazine article, what follows are five rules or commandments that fit within any lengthier volume offering advice on how scrap recyclers can manage through turbulent times.

By no means do these five commandments (or, if you prefer, strong recommendations) tell recyclers everything they need to know about how to survive a downturn. However, based on the common threads that emerged in talking to recycling industry veterans, they offer a good place to start.

i. thou shalt not take on burdensome debt.

Business loans and good banking relationships are as integral to the scrap business as to any other industry or service sector. What scrap recyclers seem to overwhelmingly agree on, however, is that the volatile revenue stream inherent to recycling means that debt-to-equity ratios that might be acceptable in other sectors can be a recipe for insolvency in the scrap business.

“Historically, it has proven to be true that lulls in business are great times to make changes: equipmentwise, efficiencywise and even just a change in business direction.” – Keith Highiet, Modesto Junk Co.

When scrap prices plunge and scrap volumes diminish, the monthly revenue for a scrap firm changes dramatically.

Recycling company owners may not agree precisely on when it is suitable to take out a loan or how much debt is too much, but they are nearly unanimous on the idea that there is a line that should not be crossed.

Overall, for a business to achieve a certain scale, “debt is not avoidable,” says Kevin Gershowitz, a principal owner of Gershow Recycling, Medford, New York. “But many times, industry members don’t manage debt well,” he continues. “While too much debt is never a good idea [in any business sector], in a commodity business and in a weak market, too much debt is a death knell.”

Melvin Lipsitz of M. Lipsitz & Co. Ltd., Waco, Texas, offers a blunt assessment: “Debt is a bad thing anytime. Typically, the interest you pay on debt and the typical net margin of profit for this industry [mean] the cost of money, even at low interest rates, can dissolve profits.”

Nonferrous scrap recycler Mark Lewon of Utah Metal Works, Salt Lake City, says that among the many scrap firms that purchased auto shredders during the (largely) bull market from 2003 to 2013, those who financed their purchases likely have learned a hard lesson.

Lewon, who also currently serves as chair-elect of the Institute of Scrap Recycling Industries (ISRI), Washington, states, “The buildup in shredders was fueled by debt. Now few, if any, shredders get enough material to run more than a couple of days per week. If that amount of volume isn’t enough to cover the payments, there is going to be a problem.”

Industry veteran Albert Cozzi, currently a principal with Bellwood, Illinois-based Cozzi Recycling, expresses a cynical view toward lenders, commenting, “Banks will always lend you whatever you want, as long as you don’t need it.”

The distressing corollary to that, he says, is that “in this environment,” when recyclers may benefit from a loan to supplement slumping revenue, banks “are just not lending to commodity-related businesses.”

Lewon says, “Debt is a tool, but it is a dangerous tool in that if the calculations for servicing that debt are inaccurate, and if volumes or margins fall short, disaster ensues.

“The bottom line is that the less debt a company has going into difficult economic times, the better the chances of its survival,” he adds.

ii. know thy costs.

Making a concerted effort to understand where outbound dollars are going and whether they are being spent wisely is an endeavor that proves worthwhile far beyond the scrap recycling industry. This knowledge proves particularly critical in a scrap industry downturn, however, when it comes time to react quickly to new market dynamics.

Sources cite careful recordkeeping and industry experience as factors that help savvier operators fully understand how and where money is being spent. “Those operators or entities who have been through prior low cycles understand the basic rule of ‘know your costs,’ managing your costs and keeping your costs low,” Kevin Gershowitz says. “This rule also allows for greater profits during better markets. The experience factor is very important.”

Steven Safran, president of Chicago-based wire processing firm Safran Metals, advises, “You should be running the business the same in the good times and the bad times, not just waiting for the bad times to ask, ‘Oh, where can I cut my costs?’”

Kevin Gershowitz expresses the same thought, saying, “The only way to survive the wake-up call [of a tough market] is to eliminate waste and fat. In good markets, efficiency can wane and costs rise. It’s easy to keep paying. However, in bad markets, those players that consciously choose to survive deliberately review their costs, efficiencies and spending.”

Cozzi offers a similar perspective, saying, “I am a big believer that operationally, when things are good, you run things as if things were going to get bad. That way, when things do turn bad, you don’t have to make many operational changes.”

The hard work is in the details, Cozzi adds, remarking, “It is important to look at every line item on the income statement regularly to see where costs can be reduced. Also, it is important to look at every item on the balance sheet to see where cash can be squeezed out.”

“The less debt a company has going into difficult economic times, the better the chances of its survival.” Mark Lewon, Utah Metal Works

When a downturn hits, “Yes, you may have to change to adjust to volumes,” he says, “but whether things are good or bad, you have to look at your business every day and find ways to be more efficient and continually improve operations.”

John Tiziani, chief financial officer of Gershow Recycling, sums up this management principle by stating, “The companies that know every detail to their businesses survive in low markets and thrive in high markets.”

iii. thou shalt not overpay for material.

The adage “Scrap is bought, not sold” is one of the first phrases someone new to the industry learns, and the importance of the phrase is magnified when scrap buyers are operating in a declining or depressed market.

In bad times or good, prices paid for inbound material are likely the biggest numbers on the expenses side of the ledger, so avoiding overpaying is directly related to the “Know thy costs” commandment.

What veteran recyclers observe, however, is that overpaying can cause even more harm to a company’s balance sheet during bad times, and yet some company managers have a greater tendency to make this mistake in a market slump as they try to meet volume projections.

“Warren Buffet says, ‘You cannot buy market share; you can only rent it for a short period,” Cozzi says. He says the purchase of any grade from any supplier should be scrutinized as to whether it is contributing to profitability.

“Most scrap companies are looking at average cost of their purchases rather than incremental cost or marginal cost of both their feedstock and their operating expenses,” Cozzi says. “During good or bad times, the most important financial metric is contribution margin. Very often those marginal tons are providing negative contribution margin.”

Cozzi, who helped run Chicago-based Cozzi Iron & Metal before that family business was sold to Metal Management Inc. (now Sims Metal Management) in 1998, says maximizing volume may keep machinery active, but that does not necessarily make it the right approach.

“Whether our family ran one or 40 yards, we always did a sensitivity analysis for each yard to make assumptions [about] what price would provide what tonnage, and at what levels is contribution margin maximized. Generally, that answer is at a lower tonnage and lower price point.”

Safran says his family company has remained a modestly sized business in part because it follows this same logic, even during boom markets. “This is the reason Safran Metals has been lean over the years: If we’re looking to pick up new business, we want to pick up business that makes sense. We’re not just looking to pick up marginal business. And I’m guessing too many dealers pick up marginal business, and especially business where you also have to increase your overhead. If so, then you’re putting yourself in more of a risk situation.”

Elliott Gershowitz, a co-principal at Gershow Recycling, along with his brother Kevin, comments, “Don’t overpay for market share on the basis of more volume. You can make the same profit if not more sometimes just by widening your spread and working on lower volumes.”

Kevin Gershowitz elaborates, saying, “Overpaying for raw material is a contagious, infectious disease. The old adage of ‘Make it up in volume’ is just as false today as it was then.” He concludes, “One has to be smart when buying. One needs smart buyers when buying. Anyone can buy if they overpay.”

iv. thou shalt not neglect good people.

When a downturn hits and then lingers, it becomes exceedingly difficult for a company manager to avoid painful personnel decisions. The negative impacts are clear to the employees being laid off or terminated and can be nearly as traumatic for the managers who have to make and communicate these decisions to their employees.

More subtle but of great importance in the long term is the risk to a company’s future when employees who are critical to the workplace knowledge base, culture, morale and future productivity gains of a company are among those who are terminated or leave the company after a payroll cut.

When asked about cost cuts to avoid during difficult times, Keith Highiet of Modesto Junk Co., Modesto, California, says, “Neglecting equipment or losing good people are not options. There are other expenses that can be cut first.”

A recycling company that wishes to retain its key employees through a downturn may need to turn to reduced hours as a cost-cutting technique. “Reduced hours and having good supervision are the keys,” Lipsitz says.

Safran says, “I have never laid anybody off [because of business conditions], maybe because we’ve been lean and mean. The workers help me make money in the good times, and I look at it that I have to take care of them in the bad times. We may need to cut back on hours, but if you have good people, and you spend money training them, you look at what you have to do to keep key employees.”

Lewon says good communication prevents workers from either being blindsided by bad news or from failing to understand the seriousness of a market downturn. “Explain to your people exactly what is going on so that they are aware,” he comments.

Even with the best management practices, “I think that choices have to be made,” Lewon says, when it comes to adjusting personnel levels to meet market realities. “Don’t be afraid to let marginal employees go. Tell the good employees that you want to keep them and that you will work with them to help them make it.”

v. continue to invest in quality.

When scrap prices are low and volumes have slowed to a trickle, it is likely that cash flow conditions will be on the tight side of the spectrum as well. A combination of tight cash flow and a commitment to avoid burdensome debt would seem to make a downturn an unlikely time to invest in operations improvements. However, veteran recyclers warn that neglecting one’s equipment for any consi

derable amount of time is likely to yield negative results. Retaining a high level of quality in operations starts with equipment maintenance, recyclers seemed to unanimously agree. (See the sidebar “Always Maintain”)

Beyond that important rule, veteran recyclers also say a market slump can provide managers with available time to research new equipment, adding that they often encounter equipment makers eager to make a sale during a lull.

“Historically, it has proven to be true that lulls in business are great times to make changes: equipmentwise, efficiencywise and even just a change in business direction,” says Highiet.

“Often, equipment salespeople are willing to deal in order to make sales in tough times,” Lewon says. “For anyone with cash and a long-term view, sometimes difficult times can be a great time to buy equipment.”

Kevin Gershowitz, who has encountered the same circumstance, says, “Better deals can be had on certain equipment from those sellers in need of making sales.”

Yet more critical than saving a few dollars, he says, is preparing to be competitive in the long run. “More important than the savings on the investment is the ability to be ready to go when the markets recover,” he states.

Kevin Gershowitz also points to the importance of keeping in mind the extended research, purchase and installation timeline for such a project.

“The workers help me make money in the good times, and I look at it that I have to take care of them in the bad times.” – Steven Safran, Safran Metals

“On some scrap processing equipment, from investigation to contract to install, it can take over a year for new processing equipment to become operational. Installing now and being in the game when the market recovers is better than beginning to install when the market recovers and then begin operating when the market tanks again,” he comments.

The first quarter of 2016 has provided financial press headlines pertaining in particular to China’s economy and the woes of the global steel industry that may well help to prolong the difficulties in the commodities sector.

Recycling industry veterans are far from complacent, but they do profess a certain amount of faith that abiding by time-tested management principles will help make the slump bearable.

“This downturn is having real consequences,” Highiet says. However, he adds, “The ability and wherewithal to weather prior [slumps], from controlling costs to accepting smaller profit margins with reduced flows of scrap, are helpful to rely upon in the current environment.”

Kevin Gershowitz says, “The fixed costs of operating a scrap yard are real and very expensive. The percent of gross margin needed to cover costs increases as market pricing lowers. When pricing is high, margins are wide and just about any company or individual can generate profits. Low pricing is a different business skill set. As market pricing lowers, margins get squeezed and do not expand. This explains many of the closures we read about.”

Cozzi returns to the idea of veteran leadership as making a difference for some scrap companies. “I believe that people in the industry prior to 2000 do have an advantage over people who are more recent to the business. They have lived through the cycles of the commodities market and of the economy,” he states.

Whether the rest of 2016 brings with it low prices or rising prices, employees of scrap companies with veteran leaders are likely to hear from them with variations of these five commandments and other lessons learned from previous experience.

Author: The author is editor of Recycling Today, Brian Taylor

Source: Recycling Today

Published by WIH Resource Group

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