Lincoln Young

Recycling for Profit

Lincoln Young

Chief Operating Officer of Ground Up

Recycling

Chief Operating Officer of Rockwood

Recycling

Treasurer of TRC

What Does Profit Look

like in the Waste Industry?

Industry: - Making Money out of

their recyclables

- Reducing Cost

- Meeting

Sustainability

mandates and goals

Municipality: - Making Money out of

their recyclables

- Reducing Cost

- Meeting

Sustainability

mandates and goals

- Reducing landfill fees

- Creating Jobs

- Keeping money in the

community

What Does Profit Look

like in the Waste Industry?

Recycler: - Making Money out of

their recyclables

- Reducing Cost

- Meeting Projections

- Tipping Fee/

Purchase Price

Regardless of the company structure

we all view profit with similar goals

and objectives.

Define Profit?

Cold Hard Cash

Deferred cost

Future Cost

Profit Key #1:

Provide the best material with the least

cost.

Barriers

- Contamination - Pricing

- Ancillary Cost -Processing, manipulating, handling

How to deal with current market?

Prices are low

Cost are high

Landfills are pretty cheap

FIND A NICHE

Start looking at the high hanging fruit.

Look at opportunities and markets

What is needed around your company,

within your community.

Develop your “Problem Child”

Example 1: Phoenix, Arizona

34,000 Tons of Palm Tree Fronds

City issued a RFI (Request for

Information)

City obtained ideas and ended up

finding Palm Tree Silage, a company

that made animal feed from palm tree

fronds and dates.

Result: Increase Recycling, reduce

Tipping fee by $5/ton, company pays

rent on city property.

Example 2: City of Lebanon, TN

Problem: $250,000/ yr in electric bills

for WWTP

Several hundred thousands in landfill

cost to out of town landfill.

Action: Down Draft Gasification

Example 2: City of Lebanon, TN

Results: Saved $250,000 in ATAD

Saved $150,000 in electricity

Reduced landfill runs by 30%

Started a profitable hauling business.

Set up 3P and gained a revenue on

Tipping Fees

Find something different that has potential

and develop a market around it.

Look for Partnerships

Regardless of your company,

partnerships are a good thing

Partner on land, site development, end

use.

Municipalities may not have it all but

they have a great bond rating.

Keys to a solid partnership

Trust

Communication

Fairness

Example : City of Lebanon, TN

Rockwood Recycling

- Developed and own the

land

- Manage the collection,

processing, and billing

- Have the ability to grow a

recycling business

City of Lebanon

- Helped with temporary

buildings and Grants

- Purchased wood screen

- Relinquished tipping fees

and contract

responsibilities

Find the win- win-win

Celebrate the “win” on all sides.

Industry: Reduce landfill tonnage,

decrease tipping fees.

Recycler: Develop a market, have a

strong home base so expansion is not

so risky

Municipality: Save on tipping fees,

increase recycling tonnage, increase

jobs, increase local resources, add

value to the community

Example: City of Lebanon

Tires

Industry: Paying

$45/ton at landfill if

dealer

Recycler: Not in

market

Municipality:

Losing money

annually on

transportation and

rising costs

Tires

Industry: Paying

$20/ton if they want

a service

Recycler: In the

market on a entry

level

Municipality: No

transportation

cost. Could see a

gain.

Keys to making PROFIT in Recycling

Branch out with calculated risks

Find out what others need and attack

the need, do not copy every other

recycler in the Country.

Analyze the Gaps

Analyze the GAPS

What are the leakage points?

What can quickly be done to stop the

bleeding? TRIAGE PHASE

What long term must be done?

Privatize the GAPS within the partnership

Transportation cost- Should the

municipality or the recycler haul

instead?

End Use- Is there a local market for

recycled by-products?

Economic Development- If there is not

a market can you get one?

Analyze the GAPS

Do not forget the offset cost.

Avoided cost now are real cost later

and MUST be calculated

Enjoy the Outcome

Recycling is not easy. Recycling is not

easy at all.

Finding uses for waste products

should be rewarding and beneficial

Get the creative juices flowing

“A recent study found that 90% of the

material going to landfill has a market value.”

Lincoln Young

lincoln@groundupshingle.com