Recycling companies seen struggling with higher processing costs

SPOKANE (Scrap Monster): The positive environmental benefits offered by recycling are undeniable. However, the cost of recycling has increased substantially during recent years. Recycling saves money for municipalities and taxpayers than directing the trash to landfills. Moreover, landfills are considered to be the most expensive form of waste management.

According to most recent figures released by the US Environmental Protection Agency (EPA), Americans generate nearly 254 million tons of trash every year. Out of this, around 87 million tons are either recycled or composted, thereby leading to a national recycling rate of 34.3%. Also, recycling and composting has resulted in tremendous environmental benefits by preventing release of 186 million metric tons of carbon dioxide in 2013.

Aluminum cans are the largest recycled category of beverage containers in the US. The environmental impact created by recycling of aluminum cans is huge as making a can from recycled aluminum saves 92% of the energy required to make a new can.

However, higher contamination rates have led to increased processing costs for recycling companies. For instance, sharp rise in quantity of non-recyclable materials has cost the District of Columbia more in terms of recyclable processing cost and has almost halved the profits from selling of recyclables. Nowadays, contamination in inbound stream has come out as the biggest challenge to recycling system. Surveys indicate that one in every 10 Americans has the tendency to throw waste in recycling bins when trash cans are full. Also, one of out five possessed the habit of placing an item in recycling container without knowing fully whether that item is recyclable or not.

The recycling industry is also challenged by the plunging market prices and sinking demand for recycled material.