recycling and the economy gerry fishbeck, chair sc recycling market development advisory council...
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RECYCLING AND THE ECONOMY
Gerry Fishbeck, ChairSC Recycling Market Development
Advisory Council (RMDAC)October 27, 2011
• Commerce• Counties• Municipalities• Solid waste industry • Existing recycling industry • Glass industry• Paper industry
RECYCLING MARKET DEVELOPMENT ADVISORY COUNCIL14 Governor-appointed members representing:
• Aluminum industry• Plastics industry• Tire industry• General public• Oil industry• Scrap metal recycling industry• Higher education research institutions
• Housed at SC Department of Commerce
• RMDAC’s mission is to advocate opportunities to develop sustainable markets, support the growth of South Carolina’s recycling industry, and advise the state on efforts required to increase recovery of recycled materials.
• Supports market development activities for recyclable commodities – paper, plastic, metals, electronics, construction and demolition materials, tires, etc.
RMDAC
• Funding received annually from Department of Health and Environmental Control (DHEC) for staff support from Commerce to RMDAC and its programs
• DHEC gets its funding from the Solid Waste Trust Fund from the collection of Advanced Recovery Fees on tires, batteries, oil, appliances
• Commerce and DHEC partnership
RMDAC
• 2006 study: recycling annual economic impact of $6.5 billion• 325 businesses that broker, haul, process and/or manufacture
recovered materials• 15,600 jobs. Jobs impact: 37,440, For every 1 job in recycling,
economic impact of 2.4 jobs. • Annual estimated income impact of $1.5 billion• $69 million state tax revenue• Growth in recycling businesses of 12% annually; economic impact
of $11 billion in 2011
ECONOMIC IMPACT
Source: South Carolina Department of Commerce, FTE’s - Full Time Equivalents
TOTAL: $3.7 billion in investments over the past four years
2010 Investment: $438 million, 1130 jobs, 28 companies
Recycling is growing at an annual rate of 12% which is faster than many other sectors of the economy!
Year Total SC
Investment Total SC
FTE's
Total Recycling Investment
Total FTE's
% Recycling Investment
% of FTE's
2006 $2,983,739,000 14,398 $844,000,000 850 28% 6%
2007 $4,050,047,444 15,688 $929,000,000 620 23% 4%
2008 $4,169,751,439 18,993 $1,137,000,000 1,379 27% 7%
2009 $2,385,521,454 18,012 $354,000,000 1,354 15% 8%
2010 $4,058,229,439 20,443 $438,000,000 1,130 11% 6%
Total $17,647,288,776 87,534 $3,702,000,000 5333 21% 6%
Exporting
Brokering
Reusing
Business Activity by Commodity(SC Department of Commerce Database)
Untapped SC Recycling Potential FY10
BEYOND LOSS OF FEEDSTOCK..
WHAT ARE THE OTHER CHALLENGES?
waste is a utility similar to water &
electricity – it is not free
there is a public and private cost for not recycling
size matters in this industry
recycling = jobs, business growth &
prosperity
you don’t recycle?
not cool
vague understanding
among public that recycling does
something good
IF I WERE LEGISLATOR FOR THE DAY, I WOULD…..
support policy that ensures market consistency &
sustainability
fix the landfill cost structure with full costs
covered
implement land fill bans on recyclables
undertake tax reform
advanced disposal fees & producer responsibility
implement incentives to encourage material
recovery
volunteerism alone is not reliable -
mandate recycling
HOW RECYCLING CLUSTER FORMED…
Economic Impact Study in 2006
RMDAC and New Carolina-SC’s Council on Competitiveness – drivers
Cluster – think Napa Valley, Silicon Valley
Value chain
Joint purchasing
Joint logistics
Joint production
Supply-chain
development
Joint marketing
Joint product branding
Joint region branding
Joint foreign market
promotion
Intelligence
Market intelligence
Technical trends
Joint R&D
Joint R&D projects
Firm formation
Incubator services
Spin-off promotion
Business services
Bus. environment
Regulations and policy
Infrastructure
investment
Process/HR
Technical training
Management training
Technical standards
Education system
Production processes
RECYCLING CLUSTERRecycling Industry Group (formative name)5 committees (Value Chain, Business
Environment, Firm Formation, Joint Marketing, & Cross Functional (HR, R&D, Intelligence)
Policy, infrastructure, networking, markets focused
TIMELINE…Fall 2007 – held first cluster meeting
Anchor company – SonocoChair: Ronnie Grant, Sonoco Recycling
Developed RIG Action Plan Winter 2008Held first Recycling Industry Legislative Day February 7,
2008Recycling Industry recognized by the House and Senate through
resolutionImplemented Action Plan components in 2008
2009 ACCOMPLISHMENTSBusiness Environment:1.SC Reduce Reuse Recycle license plate2.SC Recycling Industry Legislative Day with CRA on April 21, 2009 – recycling incorporated into renewable energy definition• House/Senate Resolutions recognizing industry
2010 ACCOMPLISHMENTS• Raised $30K for Strategic Plan; kicked off with CEO
Roundtable Jan. 29, 2010
Plastics Provider, Inc. Plastics Provider, Inc.
2010 ACCOMPLISHMENTS
• CEO Roundtable Held; Strategic Plan Delivered Aug. ‘10• 2010 meetings – Jan. 12, May 11, and Sept.14•Special Projects
February 3, 2010 Legislative Day Share the Load at SCTACReduce Reuse Recycle Plate to general public in Jan on SC DMV
2011 ACCOMPLISHMENTSPrioritization of Strategic Plan activities Dec 16-17, 2010Share the Load kick-off April 26, 2011Renamed RIG to SC Recycling CouncilMarch 2011 Legislative Day – CRA, SERDC, New Carolina partnersS 461 –ABC Recycling Bill passed out of SenateE-Cycling legislation; banSC Recycling Marketing campaign kicked-off
NEXT STEPS…SCRC affiliation w/other recycling groups
SERDC, SCRABrand recycling – target audiences legislators, businesses, consumers, potential membersHouse version of ABC recycling billJoint project on increasing glass recycling with DHEC, CRA, SERDC, SWANA, and RMDACLegislative Day February 2012
Recycling Market Development Advisory Council
Gerry Fishbeck, Chair
URRC 864-574-0904
SC Recycling Council Ronnie Grant,
Chair Sonoco 843-383-7665
Support Staff: Department of Commerce
Recycling Market Development Chantal Fryer803-737-0477