Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Intel sign outside of company building.

    Intel’s CapEx tops $20B on server demand while PC volume shrinks

    Google sign on company building with blue sky and clouds above.

    Inside Alphabet’s Q2 results: More capital spending and cloud backlog

    Alpek closing Pennsylvania RPET plant

    Alpek seizing on war-related opportunity 

    Our top stories from March 2023

    Iron Mountain’s data center report: Strong on power, quiet on hardware

    Dow touts US PE advantage amid Iran war

    Dow bullish on August PE pricing

    Certification Scorecard — Week of July 20, 2026

  • 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
    Intel sign outside of company building.

    Intel’s CapEx tops $20B on server demand while PC volume shrinks

    Google sign on company building with blue sky and clouds above.

    Inside Alphabet’s Q2 results: More capital spending and cloud backlog

    Alpek closing Pennsylvania RPET plant

    Alpek seizing on war-related opportunity 

    Our top stories from March 2023

    Iron Mountain’s data center report: Strong on power, quiet on hardware

    Dow touts US PE advantage amid Iran war

    Dow bullish on August PE pricing

    Certification Scorecard — Week of July 20, 2026

  • 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

Redefining precious metals recycling for a circular economy

Redefining precious metals recycling for a circular economy

bySibanye-Stillwater
July 30, 2026

Sale by Tiger and partner Can-Am Machinery features pulping, drying, baling and other assets from a fiber-processing and pulp-production plant...

GFL raises 2026 guidance as Q2 revenue climbs 16.3%

byStefanie Valentic
July 30, 2026

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) reported second-quarter revenue of $1.95 billion, up 16.3% from $1.68 billion a year...

Spin-off lets Linca focus on battery mineral recovery

GAO: Policy, tech updates needed to bolster domestic mineral supply

byPaul Lane
July 30, 2026

Federal investigators say short- and long-term solutions are needed to decrease the nation’s reliance upon foreign-based minerals.

WM’s Q2 recycling and renewable energy EBITDA jumps

byStefanie Valentic
July 29, 2026

WM's recycling and renewable energy businesses drove nearly 33% EBITDA growth in Q2, even as commodity prices softened and the...

Colorado approval signals path forward for PRO choice

Clean Harbors’ disposal and recycling network drives Q2

byStefanie Valentic
July 29, 2026

Strong demand across Clean Harbors' disposal and recycling network fueled a record quarter, and a higher outlook for the rest...

Certification Scorecard — Week of July 27, 2026

byPaul Lane
July 29, 2026

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

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

CarbonLite to open $60 million Pennsylvania plant

Federal judge blocks CA ‘Truth in Recycling’ (SB 343) law

July 15, 2026
Alpek closing Pennsylvania RPET plant

Alpek seizing on war-related opportunity 

July 27, 2026

MTA loses track of recycling, costing NYC Transit $800,000

July 23, 2026
California releases deposit system update draft rules

Groups move to intervene in SB 343 lawsuit

July 27, 2026
Women in Circularity: Christine Nikander

Women in Circularity: Christine Nikander

July 28, 2026
Ivan Rangel of Happen Ventures speaks at the PROP conference in Lancaster, PA July 24, 2026.

Making reuse as easy as possible

July 27, 2026
Industry announcements for January 2026

Industry announcements for July 2026

July 1, 2026
Waste Connections company truck on an urban street.

Waste Connections sees Q2 lift on recycled commodity values

July 24, 2026
Dow touts US PE advantage amid Iran war

Dow bullish on August PE pricing

July 24, 2026
Greyparrot positions waste intel as key to effective EPR

Greyparrot secures $27m for growing AI waste data

July 28, 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.