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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
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