Recycling Facilities in The US Industry Report

Recycling Facilities in the USApril 2016 1
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One mans trash: Revenue will increase following a

drop in commodity prices and rise in population
IBISWorld Industry Report 56292
Recycling Facilities in the US

April 2016
Dmitry Diment
2 About this Industry
17 International Trade
Industry Definition
18 Business Locations
Main Activities
Similar Industries
20 Competitive Landscape
33 Industry Data
Additional Resources
20 Market Share Concentration
33 Annual Change
20 Key Success Factors
33 Key Ratios
3 Industry at a Glance
31 Industry Assistance
33 Key Statistics
20 Cost Structure Benchmarks

22 Basis of Competition
4 Industry Performance
23 Barriers to Entry
Executive Summary
23 Industry Globalization
Key External Drivers
Current Performance
24 Major Companies
Industry Outlook
24 Waste Management Inc.
11 Industry Life Cycle
25 Republic Services Inc.
13 Products & Markets
28 Operating Conditions
13 Supply Chains
28 Capital Intensity
13 Products & Services
29 Technology & Systems
15 Demand Determinants
30 Revenue Volatility
15 Major Markets
31 Regulation & Policy
34 Jargon & Glossary
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About this Industry

Industry Definition
This industry operates recycling facilities,

which separate and sort recyclable
materials such as paper, plastic and glass
from waste streams. Operators also sort
commingled recyclable materials into
distinct categories, as well as refine goods
Main Activities
The primary activities of this industry are
into recycled commodities (i.e. convert

plastic bottles into raw plastic) and sell
recycled materials to manufacturers and
wholesalers. This industry does not
include government bodies that directly
provide these services to the public.
Operating facilities for separating and sorting recyclable materials from nonhazardous waste streams
Operating facilities where commingled recyclable materials are sorted into distinct categories
The major products and services in this industry are

Sale of recycled materials
Recyclable material recovery and processing
Recyclables collection services
Other
Similar Industries
22132 Sewage Treatment Facilities in the US

This industry collects, treats, and disposes waste through sewer systems or sewage treatment facilities.
56211 Waste Collection Services in the US
This industry engages in waste collection.
56221 Waste Treatment & Disposal Services in the US
This industry engages in waste treatment and disposal (except materials recovery).
56291 Remediation & Environmental Cleanup Services in the US
This industry provides site and building remediation services.
Additional Resources
For additional information on this industry

www.nrcrecycles.org
National Recycling Coalition
www.bls.gov
US Bureau of Labor Statistics
www.census.gov
US Census Bureau
www.epa.gov
US Environmental Protection Agency
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Recycling Facilities in the US April 2016
Industry at a Glance
Recycling Facilities in 2016
Key Statistics
Snapshot
Revenue
Annual Growth 11-16
Annual Growth 16-21
Profit
Wages
Businesses
-5.5%
4.5%
$192.8m $875.5m 1,155
$4.9bn
Demand from recyclable material

wholesaling
Revenue vs. employment growth
Market Share
Waste
Management Inc.
20.9%
40
16
8
Republic Services
Inc.
7.0%
% change
% change
20
0
-20
0
-8
-16
-40
Year 08
10
12
Revenue
14
16
18
20
-24
Year
22
08
10
12
14
16
18
20
Employment
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p. 24
Products and services segmentation (2016)
5.2%
Recyclables collection
services
8.2%
Demand from recyclable

material wholesaling
Other
Population
Price of paper
47.3%
Price of plastic
materials and resin
Recyclable material
recovery and processing
Regulation for the

Waste Treatment and
Disposal Services sector
39.3%
World price of crude oil
p. 4
SOURCE:
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SOURCE:
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Industry Structure
Life Cycle Stage

Revenue Volatility
Capital Intensity
Growth
High
Medium
Regulation Level
Medium
Barriers to Entry
Medium
Industry Assistance
High
Industry Globalization
Concentration Level
Low
Competition Level
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 33
Heavy
Technology Change
Low
Medium
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Industry Performance
Executive Summary | Key External Drivers | Current Performance

Industry Outlook | Life Cycle Stage
Executive
Summary
The Recycling Facilities industry

accepts unsorted waste and recyclable
materials and sorts them into specific
recyclable material streams. These
materials are then processed and
refined into raw materials that can be
used to produce new goods. Recycling
facilities range from small operators
that sort and package a communitys
recyclable materials by hand for
further processing, to processing
plants that use more capital-intensive
machines to convert collected
recyclables into raw materials.
State
and local government funding for

recycling services has increased
The industry has had mixed results over
the past five years, with revenue projected
to decline at an annualized rate of 5.5% to
$4.9 billion. Strong demand for recycling
services can primarily be attributed to
increasing public environmental
consciousness. With concerns rising over
the environmental impacts and threats to
public health that landfills present, state
and local government funding for
recycling services, an alternative to
landfills, has increased.
However, revenue declines of the past
five years have been tied to a drop in
Demand from recyclable

material wholesaling
Recyclable material wholesalers purchase
recycled materials from industry facilities.
Increased demand from wholesalers results
in higher industry revenue. The Recyclable
Material Wholesaling industry is expected to
grow in 2016 despite a decline in oil prices.
Population
As the population grows, more waste is
produced, which increases the amount of
commodity prices. Although the market for

recycled commodities is still relatively new,
the sale of recycled materials had grown to
comprise an estimated 39.3% of industry
revenue in 2016. Demand for these
materials fluctuates based on the price of
newly produced plastic, glass and paper,
which are substitutes for these recycled
commodities, and the decline in the world
price of crude oil (a major input into plastic
production) has made virgin goods less
expensive. This has ultimately had a
negative effect on industry operators by
eroding the price advantage of recycled
goods. With the price of crude oil
plummeting 47.3% in 2015, industry
revenue fell an estimated 10.4%. The
continued decline into 2016 is expected to
lead to a 5.0% contraction in revenue during
the current year.
Over the next five years, the industry is
expected to grow as demand for recycling
services increases and commodity prices
rise. The number of small industry operators
will grow as small communities across the
country develop recycling programs. Large
companies such as Waste Management Inc.
will also expand their industry operations,
providing recycling facility services for
major cities that are anticipated to expand
existing recycling programs. As a result,
industry revenue is forecast to grow at an
annualized rate of 4.5% over the five years to
2021 to reach $6.2 billion.
material available to be recycled. Increasing

waste production drives demand for
recycling, which bolsters demand for
industry services. The population is
expected to rise in 2016, representing a
potential opportunity for the industry.
Price of paper
As of 2012 (latest data available), 64.6% of
paper and paperboard waste was recovered
or recycled, a much higher percentage than
that of any other recycled product. The
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amount of paper that is recycled in industry

facilities is partially dependent on the price
of paper. When paper prices rise, demand
will rise for less expensive paper produced at
recycling facilities, raising industry revenue.
Moreover, as the price of paper increases,
industry operators will receive higher prices
for recycled paper, thereby increasing
industry revenue. The price of paper is
expected to increase in 2016.
Price of plastic materials and resin
Manufacturers consider the price of recycled
plastic versus that of virgin plastic when
making plastic input purchases, as the two
products are mostly interchangeable in
terms of quality. With demand for recycled
content steadily growing, manufacturers are
also considering the marketing advantages
of a product with recycled content. When
the price of virgin plastic grows, demand
for recycled plastic tends to increase,
boosting industry revenue. The price of
plastic materials and resin is expected to
increase in 2016.
Regulation for the Waste Treatment
and Disposal Services sector
While recycling rates have increased over
time, the vast majority of waste produced
continues to be deposited in landfills.

Higher regulation in the Waste Treatment
and Disposal Services industry increases
landfill operation costs. This often increases
the price that waste collection service
providers must pay to dispose of waste in
landfills, which encourages operators in that
industry to bring waste to recycling facilities
instead. Regulation for the Waste Treatment
and Disposal Services industry is expected
to increase in 2016.
World price of crude oil
Fuel purchases comprise a large cost for
waste collectors, which provide the industry
with large amounts of the unsorted waste
that it processes. The price of fuel is highly
correlated with the price of crude oil; when
crude oil prices rise, fuel prices tend to
increase. As a result, the cost of purchasing
unsorted waste increases for industry
operators as crude oil prices rise. Even more
important, however, is the correlation
between crude oil prices and commodities
such as plastic. When the price of crude oil
declines, the cost of producing plastic falls,
depressing commodity prices and reducing
demand for recycled materials. The price of
crude oil is expected to fall again in 2016,
posing a potential threat to the industry.
Population

wholesaling
16
1.0
0.9
% change
% change

continued
-8
0.7
-16
-24
Year
0.8
08
10
12
14
16
18
20
0.6
Year
08
10
12
14
16
18
20
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Environmental
consciousness
generates growth
The Recycling Facilities industry is

composed of recycling facilities, which
separate and sort recyclable materials such
as paper, plastic and glass from waste
streams; operators also sort commingled
recyclable materials into distinct categories,
as well as refine goods into recycled
commodities (i.e. convert plastic bottles into
raw plastic) and sell recycled materials to
manufacturers and wholesalers. This
industry does not include government
bodies that directly provide these services to
the public.
Although rising environmental
consciousness has led to the expansion of
recycling programs around the country, the
decline in fuel prices has translated into
falling commodity prices, pushing the
industry into decline. Following substantial
growth during at outset of the period,
industry operators have seen revenue
contract as a result of falling oil prices,
which have pushed down the price of key
commodities. As a result, industry revenue

is projected to contract at an average annual
rate of 5.5% to $4.9 billion during the five
years to 2016. However, this decline
represents an aberration in the long-run
expansion of the industry, and is not
expected to last beyond the current year.
Much of the industrys success can be

attributed to growth in environmental
consciousness in the United States. The
establishment of the countrys earliest
recycling programs in the 1970s came
about due to a rise in public concern
over the damage that landfills and waste
incinerators could do to ecosystems and
public health, as well as awareness of the
amount of energy and resources that
could be conserved by reusing materials.
Since then, recycling programs have
expanded steadily. According to the US
Environmental Protection Agency
(EPA), the percentage of municipal solid
waste that is recycled increased from
10.1% in 1980 to 34.5% in 2012 (latest
data available).
The need for recycling programs has
grown even more rapidly in recent years.
With the US population increasing at a
steady annualized rate of 0.8%, and with
per capita waste generation fairly stable
at 4.38 pounds per day, according to

EPA figures, waste generation has
gradually increased. Additionally, rising
consumer incomes and the stabilization
of state and local budgets have made
more monetary resources available for
the establishment or enhancement of
recycling programs. These trends have
pushed increasing numbers of state and
local governments, individuals and
nonprofit organizations to invest in the
development of recycling facilities.
Legislation inspired by growing
environmental consciousness has also
limited the activities of landfills,
resulting in more waste being directed
toward recycling facilities. As a result,
over the five years to 2016, the number
of industry establishments has grown at
an annualized rate of 3.8% to 1,518
locations, while industry employment
has grown an average 5.0% per year to
23,308 workers.
Industry revenue
40
20
% change
Current
Performance
0
-20
-40
Year 08
10
12
14
16
18
20
22
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Volatile recycled
material sales
Expansion of larger
companies
Another important cause for the growth of

the Recycling Facilities industry has been
the market for recycled materials, from
which an estimated 39.3% of industry
revenue is derived in 2016. The prices of
new plastic, paper, glass and other
materials that are commonly recycled
have been low, stifling demand for
recycled materials. The low prices of these
commodities have hampered the industry,
despite the growth of emerging markets
that has driven demand for these inputs.
The price of paper is projected to increase
a modest annualized 0.6% over the
current five-year period, while the price of
plastic materials and resin is expected to
increase just 0.5% during the current year.
Recently, the collapse in the world price of
crude oil has undermined the viability of
recycled plastic goods. Because plastic is
derived from oil, the decline in crude oil
prices has decreased the cost of virgin
plastic, eroding the price advantage of

recycled materials.
It is important to note that much of the
revenue volatility in the industry is due to
volatility in commodity pricing.
Fluctuations in the market prices or
demand for recycled commodities,
including fibers, aluminum and glass, is one
of the largest factors determining annual
revenue fluctuations. In 2015, industry
revenue contracted 10.4% as a result of the
47.2% decline in the world price of crude
oil. 2016 will see the continuation of this
trend, as the projected 33.4% decline in
global oil prices is expected to result in a
5.0% contraction in industry revenue.
Traditionally, recycling programs have

been relatively small operations that
serve a local communitys recycling
needs. However, while small companies
still comprise the majority of industry
operators, larger companies are
expanding their influence in the industry.
Large players, such as Waste
Management Inc. and Republic Services,
conduct their recycling operations in a
very different manner than smaller
operators. They often manage large,
technologically advanced recycling
facilities, which are more capital
intensive and can manage much larger
quantities of recyclable material more
efficiently. For example, Republic

Services spent $55.0 million in 2012 on
the development of an 80,000-squarefoot recycling plant that is able to
process up to 420,000 tons of waste per
year, designed to handle all of the city of
San Jose, CAs recycling needs; in 2015,
the company invested about $36.0
million to develop and upgrade its
recycling centers. Vertical integration,
which allows these companies to avoid
having to pay operators in the Waste
Collection Services industry (IBISWorld
report 56211) a fee for the delivery of
recyclable materials, makes these
operations more efficient.
The
expansion of markets
for recycled materials has
caused rapid growth
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Volatile profit
margins
Industry profit is expected to account for

just 3.9% of industry revenue in 2016,
down substantially from 8.3% in 2011.
Large swings in the price of recycled
materials have a great effect on industry
profitability from year to year. The sale of
recycled materials accounts for a growing
share of industry revenue. The market for
recycled materials in the United States is
still young, however, demand for these
commodities is very sensitive to the price
of plastic, paper, glass and other
recyclable materials. As a result, the
prices of recycled materials fluctuate
regularly. With the sale of recycled
materials accounting for a substantial
share of industry revenue, the recent
decline in commodity prices has pushed
industry revenue downward.
However, the decline in commodity
prices is only temporary, and has
obscured other trends that have had a
positive effect on profit, which reached an
estimated five-year high in 2011 revenue.
For example, the greater involvement of
large companies in this industry, such as
Waste Management Inc., has increased
overall industry profitability. Vertical
integration with the Waste Collection
Services industry has allowed these
industry operators to avoid paying waste
collection service providers for unsorted
waste, which can often be very costly.
More
efficient operating
processes have allowed
for lower costs and higher
profit margins
These operators also use high-tech
machinery, such as infrared scanners and
magnetic pulleys, which quickly mark
and sort various types of recyclable
materials. These technologies allow these
operators to sort more waste more
quickly, while simultaneously using less
labor than smaller operators. Their
more efficient operating processes
allow for lower costs and, therefore,
higher profit margins.
Conversely, smaller operators have
experienced profit margin decreases over
the five years to 2016. Volatile fuel costs
have negatively affected the Waste
Collection Services industry, which
provides recycling facilities that are not
vertically integrated with the unsorted
waste that they recycle. As these costs
have fluctuated, waste collection service
providers have charged operators in the
Recycling Facilities industry higher prices
to purchase this unsorted waste, raising
industry purchase costs and lowering
industry profitability.
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Industry
Outlook

anticipated to grow substantially
during the next five years, with
industry revenue projected to increase
at an annualized rate of 4.5% to $6.2
billion by 2021, including a 7.7%
increase in 2017. Environmental
consciousness will continue to spread
throughout the US population,
increasing demand for recycling
services. Continued economic growth
Increased waste
The amount of waste generated

nationally is expected to continue to grow
as the US population increases. The rate
of this increase in waste generation will
be faster than usual, given the continued
recovery projected in the commercial,
industrial and construction sectors over
the five years to 2021. As the amount of
waste produced continues to grow,
government policies that encourage
recycling are anticipated to expand, with
local and state governments expected to
set higher recycling targets and
implement greater restriction of landfill
waste disposal. California plans to raise
the percentage of waste that is recycled
from 50.0% to 75.0% by 2020, while New

York City plans to double the percentage
from 2013 to 2017. As more waste is
directed away from landfills and toward
recycling facilities, the amount of revenue
the Recycling Facilities industry gains
from government support for its activities
is forecast to increase substantially.
As recycling programs spread across the

country, the number of industry
operators is anticipated to grow at an
annualized rate of 4.6% to 1,447 over the
five years to 2021. Most of these new
entrants are forecast to be small low-tech
operators that will only serve local
recycling needs. These small operations
will also be relatively more labor
intensive. Consequently, industry
employment is expected to grow at an
annualized rate of 4.6% to 29,134 total
employees over the following five years.
Simultaneously, recycling programs in

large urban centers will likely receive
more funding, increase their scope and
become more technologically advanced.
As recycling programs of this sort
expand, they will replace small recycling
facility operators due to their large,
vertically integrated structures. Examples
of these large operators include Waste
Management Inc. and Republic Services.
These operators will be able to recycle far
more materials much more efficiently due
to vertical integration, which involves
Expansion of
recycling programs
and improvements in state and local

budgets, as well as an expansion in
consumer incomes, will endow
individuals and governments with an
enhanced financial ability to satisfy the
greater demand for recycling services.
Equally as important, the expected
growth of commodity prices is expected
to benefit the industrys sale of recycled
materials, which comprise a growing
segment of industry revenue.
As
the amount of waste

produced grows, policies
that encourage recycling
will expand
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Expansion of
recycling programs
their extensive waste collection service

operations and their ability to construct
large technologically advanced recycling
facilities. The expansion of these large
operators will be at a slightly faster rate
than the expansion of new small industry
Sales of recycled
materials
Sales of recycled materials, which

currently account for about 39.3% of
industry revenue, are expected to
expand over the five years to 2021. The
market for recycled paper, plastic glass
and other recycled materials is still
small, given the relatively low amount of
recycling worldwide, as well as the
relatively high cost of recycling
materials. However, as recycling
expands and the cost of recycling
materials decreases both in the United
States and worldwide, demand for
recycled materials is anticipated to rise.
wholesalers is anticipated to grow at an

annualized rate of 2.1% over the next
five years. Demand for recycled
materials is projected to grow even
faster due to the expected rise in prices
for newly produced plastic and paper,
which are substitutes for their recycled
counterparts. This trend will increase
overall industry revenue.
Industry profit is expected to increase

over the five years to 2021, recovering
from the drop in commodity prices
witnessed at the conclusion of the
previous five-year period. The rising
presence of larger operators in the
Recycling Facilities industry will raise
industry profit margins as a whole, as
these operators are able to take
advantage of vertical integration and
economies of scale to lower costs.

Volatility in recycled materials prices is
forecast to continue, and will cause
fluctuations in industry profit. However,
as the market for recycled commodities
grows and recycled commodities become
more widely used and accepted, their
price is anticipated to stabilize to some
extent. This, in turn, will serve to stabilize
industry profit.
Profit
operators. As a result, the number of

recycling plants is expected to grow at a
faster rate than new industry operators;
overall, the number of recycling facilities
is projected to increase an annualized
4.7% to reach 1,910.
Sales
of recycled materials
are expected to expand
over the next five years
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Life Cycle Stage
Environmental awareness is increasing, driving

demand for recycling facility services
New technologies are expanding the efficiency
and capacity of recycling facilities
% Growth in share of economy
The number of industry enterprises is expanding
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
High growth in economic

importance; weaker companies
close down; developed
technology and markets
15
Key Features of a Growth Industry

Revenue grows faster than the economy
Many new companies enter the market
Rapid technology & process change
Growing customer acceptance of product
Rapid introduction of products & brands
10
Quantity Growth
Many new companies;

minor growth in economic
importance; substantial
technology change
Industrial Machinery & Equipment Wholesaling
Recycling Facilities
0 Sewage Treatment Facilities
Waste Collection Services
Cardboard Box & Container Manufacturing
Decline
Paper Mills
-5
Shrinking economic
importance
-10
-10
-5
10
15
20
% Growth in number of establishments

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Industry Life Cycle

This
industry
is G
rowing
The Recycling Facilities industry is in the

growth stage of its life cycle. Industry
value added, which measures the
industrys contribution to GDP, is
expected to grow at an annualized rate of
2.8% over the 10 years to 2021. This rate is
higher than the estimated 2.2%
annualized growth rate of GDP over the
same period, indicating that the Recycling
Facilities industry has and will be
expanding its share of the US economy.
The expansion of the Recycling
Facilities industry can primarily be
explained by growing environmental
consciousness that has spurred public
demand for recycling programs.
Recycling programs have existed in the
US since the 1970s and have grown
increasingly pervasive over time. The
amount of municipal solid waste recycled
in the US has also increased dramatically
over the decades, expanding from 14.5
million tons in 1980, to 55.8 million tons
in 1995 and finally to 86.6 million tons in
2012 (latest data available). This trend is
expected to continue as state and local
governments allocate more funding and
resources toward the development of
recycling programs.
The industry is expanding
geographically, with the number of
industry establishments nationwide
expected to grow at an annualized rate of

5.6% over the 10 years to 2021. While
much of this growth is attributable to the
establishment of new small operators,
large waste management firms such as
Republic Services are also rapidly
expanding their recycling operations and
integrating them into their greater waste
management activities. This trend,
alongside the increased construction of
large technologically advanced recycling
facilities, is increasing industry efficiency.
The sale of recycled materials, which
makes up a significant portion of
industry revenue, is expected to expand
over the 10 years to 2021. The recycled
materials market has traditionally been
small, given that new paper, plastic and
glass are relatively inexpensive to
produce, while the process of recycling
has traditionally been relatively costly.
However, technological growth,
enhancements to recycling methods
and the benefits of vertical integration
and economies of scale are making
recycled commodities less expensive to
produce, lowering their price. As
long-run recycled material prices
decrease, they are becoming more
widely accepted as inputs for
manufacturers, leading to further
growth in industry revenue.
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Products & Markets
Supply Chain | Products & Services | Demand Determinants

Major Markets | International Trade | Business Locations
Supply Chain
KEY BUYING INDUSTRIES

32212
Paper Mills in the US

Paper mill operators use recycled paper in their manufacturing process.
32221
Cardboard Box & Container Manufacturing in the US

Container manufacturers use recycled paper to produce cardboard boxes and paper
containers.
32521
Plastic & Resin Manufacturing in the US

Plastic and resin manufacturers use recycled plastic in their manufacturing process.
32612
Plastic Pipe & Parts Manufacturing in the US

Plastic pipe and parts manufacturers use recycled plastic in their manufacturing process.
32616
Plastic Bottle Manufacturing in the US

Firms in this industry use recycled plastic to manufacture plastic bottles.
32721
Glass Product Manufacturing in the US

Glass product manufacturers use recycled glass in their manufacturing process.
33243
Metal Can & Container Manufacturing in the US

Firms in this industry use recycled aluminum to manufacture metal cans and containers.
KEY SELLING INDUSTRIES
Products & Services
42383
Industrial Machinery & Equipment Wholesaling in the US

Industry operators purchase machinery used in recycling facilities from the Industrial
Machinery & Equipment Wholesalers industry.
56211
Waste Collection Services in the US

Industry operators buy unsorted waste from the Waste Collection Services industry.
56221
Waste Treatment & Disposal Services in the US

After removing recyclable materials from unsorted waste, industry operators pay waste
treatment and disposal service providers to dispose of remaining waste.
Companies in the Recycling Facilities

industry gain revenue through the
collection, processing and sale of
recycled commodities. This process
involves sorting through collected
municipal solid waste generation to find
and process recyclable materials. These
materials are then sold to downstream
customers or refined into raw materials
for further processing.
Recyclable material recovery
and processing services
Industry operators are primarily engaged
in recyclable material recovery and
processing, which accounts for an
estimated 47.3% of total industry
revenue. This service involves taking
unsorted waste, sorting out specific
streams of recyclable material, processing

this material into raw recycled
commodities and packaging it to be
resold as inputs for the production of new
goods. Alternatively, industry operators
also perform the same service with
recyclables that have already been
separated from the unsorted waste
stream during waste collection but have
not yet been sorted into specific
recyclable material categories. This
service is often carried out in
coordination with waste collection service
providers, from whom industry operators
purchase unsorted waste. In other cases,
one firm will provide both waste
collection and recycling material recovery
and processing services in order to take
advantage of vertical integration. The
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Products & Markets
Products & Services

continued
Products and services segmentation (2016)
5.2%
8.2%
Recyclables
collection services
Other
47.3%
Recyclable material
recovery and processing
39.3%
Total $4.9bn
most commonly recycled materials
include: paper and paperboard, metals,
glass and plastics. Paper and paperboard
is the most extensively recycled material,
accounting for about 70.0% of the total
weight of recycled materials.
This segment of industry revenue is
primarily driven by the publics desire to
preserve resources and reduce the
environmental and public health impacts
of landfills. As such, the primary buyers
of this industry service are state and local
governments, nonprofit organizations
and environmentally conscious
individuals who fund recycling facility
services in order to benefit the public
good. Demand for this service has
therefore grown as the public has become
more environmentally conscious, a trend
that is expected to continue.
The secondary source of income for this
industry involves the sale of recycled
materials that recycling facilities have
already collected, sorted and processed,
which accounts for an estimated 39.3% of
industry revenue. Demand for recycled
materials fluctuates considerably, causing
the prices of these goods to be very
unstable. This can affect revenue,
operating income and cash flows. In
response, some industry players enter

into municipal recycling contracts with
some of their clients, who specify certain
benchmark resale prices for recycled
commodities. This segment of industry
revenue has been slowly expanding,
although the collapse of the world price
of crude oil since 2015 has slowed the
growth of this segment. Nonetheless, it is
expected to continue to do so in the
future as rising prices for newly produced
plastic and paper convince businesses to
switch to buying recycling materials.
Recyclables collection and other services
The provision of nonhazardous waste and
recyclable material collection services
generates an estimated 5.2% of industry
revenue. Materials are collected on a
regular or flexible schedule and may be
taken to a final disposal site or to an
intermediate site such as a transfer
facility. Other services include the
operation of such transfer facilities,
which store recyclable materials before
and after they are prepared or sorted, as
well as the sale of collected recyclable
materials to third parties for processing.
This segment has declined as a share of
industry revenue as a result of the
comparatively faster growth of other
industry segments.
WWW.IBISWORLD.COM
Products & Markets
Demand
Determinants
Demand for the Recycling Facilities

industrys services is directly dependent
on the amount of recycling in the
United States, which is driven by a
number of factors.
Environmental consciousness
Environmental consciousness amongst
the American population is the most
important driver of industry demand.
Environmental concerns include: the
potentially negative effects improperly
disposed of waste has on soil and water
sources, concerns about the health effects
of living close to a waste disposal site and
a desire to limit the amount of resources
that society consumes. These concerns
have led communities to demand that
their local governments facilitate the
existence of recycling services, and have
driven others to pay for recycling services
where the local government does not
support recycling programs.
Environmental consciousness is on the
rise, and will drive further growth in
industry revenue.
Major Markets
Private businesses, including

recyclable commodity wholesalers
and manufacturers
Recycling Facilities are primarily engaged
in recyclable material recovery and
processing. This service involves taking
unsorted waste, sorting out specific
streams of recyclable material, processing
this material into raw recycled
commodities and packaging it to be
resold as inputs for the production of new
goods. The majority of this revenue is
derived from private businesses, who pay
industry firms to collect waste and sort
recyclable materials
Recycling facility operators also earn a
large share of their revenue through the
sale of recycled materials to recyclable
commodity wholesalers and
manufacturers. Manufacturers will buy
Economic growth and waste production

General economic growth helps spur
demand for industry services. Economic
growth raises disposable incomes and
increases state and local government
budgets. Since spending on recycling
services is discretionary, both individual
and government spending on recycling will
increase when their finances are in order.
In addition, increased economic activity
raises the amount of waste produced,
especially the amount of commercial,
industrial and construction site waste. As
waste generation increases, there is a
greater demand for recycling services,
which increases industry revenue.
Paper, plastic and other commodity prices
The materials that the Recycling Facilities
industry recycles, such as plastic, paper,
wood and metals, are used in almost every
manufacturing industry. When the prices
for these materials increase, the price of
recycled commodities becomes relatively
less expensive. This increases demand for
the Recycling Facilities industrys services.
recycled paper, plastic, wood, glass and

other materials that have been processed
in recycling centers, and use these
materials to make new products, such as
cardboard boxes, plastic and glass bottles
and other consumer and industrial
goods. Recyclable commodity
wholesalers serve as middlemen who
help facilitate these exchanges between
recycling facilities and manufacturers.
Municipal governments
The largest share of government funding
for the industrys revenue is derived
either directly or indirectly from
municipal governments. Funded by local
tax bases, the majority of recycling
programs across the country are
organized by municipalities. While
municipal governments often carry out
WWW.IBISWORLD.COM
Products & Markets
Major Markets
continued
Major market segmentation (2016)
1.7%
State governments, nonprofit

organizations and individuals
22.5%
Municipal governments
75.8%
Private businesses, including recyclable

commodity wholesalers and m
Total $4.9bn
recycling services directly, they also often
pay private recycling facilities to meet
local community recycling needs.
Additionally, municipalities often enact
legislation that require businesses within
their jurisdictions to organize and pay for
the recycling of their waste, indirectly
providing the Recycling Facilities industry
with revenue.
The amount of funding that a
municipality provides to recycling centers
varies widely based on the size of a
municipalitys tax base, the level of
environmental consciousness within a
particular municipality and the health of
municipal budgets. For example, Chicago,
the third-largest city in the United States,
recycles less than 10.0% of its municipal
solid waste due to limited funding for
recycling programs. Conversely, San
Jose signed a 15-year contract with
industry major player Republic Services
in 2011 to conduct all recycling services
for the citys businesses. The San Jose
city council demands that Republic
Services divert at least 80.0% of waste
away from landfills (much of which will
be done via recycling) or face large
financial penalties. Republic Services
spent $55.0 million constructing the
worlds largest recycling facility in
order to fulfill this task.
State governments, nonprofit

organizations and individuals
The provision of industry services to state
governments, nonprofit organizations
and individuals generates an estimated
1.7% of industry revenue. State
governments often aid in the
development of municipal recycling
projects by providing grants and
subsidies. For example, New York States
Municipal Waste Reduction and
Recycling Program will provide
municipalities with a 50.0%
reimbursement on recycling projects that
they fund. States with deposit-refund
systems, in which consumers will bring
used plastic and glass bottles to recycling
centers in exchange for money, will often
subsidize recycling facilities that are part
of the deposit-refund system.
Nonprofit organizations will often
provide funding for recycling facilities or
operate them themselves, especially in
areas where municipalities do not
provide substantial funding for recycling
operations. Environmentally conscious
individuals who are not sufficiently
covered by municipal recycling services
pay recycling centers to collect and
process their recyclable waste, or will
alternatively provide donations to help in
the operations of recycling facilities.
WWW.IBISWORLD.COM
Products & Markets
International Trade
While not an industry-specific business

activity, some operators in the Recycling
Facilities industry are also involved in the
export of recycled commodities. For
example, Waste Connections sells recycled
paper and plastic to customers in Asia. The
export of recycled materials is expected to
increase as manufacturing operations grow
in emerging markets and the demand for

paper, plastic and other recyclable inputs
increases abroad. In addition, this industry
is also indirectly involved in international
trade, given that companies that use
recycled materials as inputs in their
manufacturing processes may export those
finished products abroad.
WWW.IBISWORLD.COM
Products & Markets

Business Locations 2016
West
New
England
AK
0.1
Great
Lakes
WA
ND
MT
2.4
Rocky
Mountains
ID
OR
1.4
West NV
0.8
2.9
SD
0.2
WY
0.2
MN
0.4
0.5
Plains
CO
0.6
KY
0.6
OK
0.8
NC
2.6
TN
AZ
NM
1.9
0.4
Southwest
TX
6.7
HI
3.3
Additional States (as marked on map)

1 VT
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.3
2.1
0.6
3.3
2.7
0.4
SC
Southeast
1.9
MS
AL
0.7
1.5
GA
1.9
0.2
LA
0.8
FL
4.2
Establishments (%)
0.2
1.8
AR
0.4
1.4
11.5
WV VA
2.1
1.5
1.3
CA
West
3.6
MO
KS
2.1
OH
2.8
3.3
3.4
IN
IL
0.3
UT
PA
4.2
2.4
1.7
1 2
3
NY
6.8
5 4
MI
2.5
IA
NE
0.2
WI
ME
MidAtlantic
9 DC
0.2
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
WWW.IBISWORLD.COM
Products & Markets
Distribution of establishments vs. population

30
20
10
Southwest
Southeast
Plains
New England
Rocky Mountains
Establishments
Mid-Atlantic
Great Lakes
0
West
The location of recycling facilities in the

United States reflects the size and
distribution of the population, the level
and structure of economic activity and
the extent to which state and local
governments fund and support recycling
programs. The size of a regions
population is the greatest factor in
determining the number of recycling
facilities that a region has, with the four
most populous regions (the Southeast,
the West, the Great Lakes and the
Mid-Atlantic) also being the four regions
with the most recycling facilities.
Other factors however, have a large
influence on the number of recycling
facilities that exist in a given state or
region. For example, Texas accounts for
8.2% of the US population but only an
estimated 6.7% of the countrys recycling
facilities due to a lower level of public
spending on recycling. New York,
Massachusetts and Oregon all have
extensive recycling programs and also
have a larger percentage of the countrys
recycling facilities than the size of their
populations would suggest.
Economic structure also has a large
effect on the number of recycling facilities
that exist in a given state or region, with
certain industries producing large
Business Locations
Population
amounts of recyclable waste. Sectors that

produce large amounts of specific types
of recyclable waste include: finance,
property and business services (paper);
construction (wood and metal); and
retailers (cardboard and paperboard).
Those regions and states that contain
large numbers of these industries will
produce more of these types of recyclable
waste and provide greater justification for
the existence of recycling facilities.
WWW.IBISWORLD.COM
20
Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks

Basis of Competition | Barriers to Entry | Industry Globalization
Market Share
Concentration
Level
Concentration
in
this industry is L ow
The Recycling Facilities industry has a

low level of concentration, with the
industrys four largest companies
generating an estimated 29.7% of overall
industry revenue in 2016. The majority of
industry operators are small companies
that operate only one or two recycling
facilities that service a local areas
recycling needs. It is estimated that
77.9% of industry operators have 20 or
fewer employees.
Increasing concentration
With the expansion of recycling programs
across the country, the total number of
industry operators is expected to expand
at an annualized rate of 4.6% over the
five years to 2016. However, the
industrys two major players, Waste
Management and Republic Services, have
also expanded their operations during
this period, resulting in growing industry
concentration. Much of their expansion
has been due to mergers and
Key Success Factors

IBISWorld
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Production of premium goods/services

The price of recycled commodities sold
affects sales to downstream customers.
Ability to attract local support/patronage
A local customer base builds community
relations and can improve the reliability of
recycled inputs.
acquisitions. For example, Republic

Services greatly expanded its presence
in the Recycling Facilities industry
when it merged with Allied Waste
Industries in late 2008. This event was
particularly significant in increasing
industry concentration.
But still low
The expansion of the recycling sector
across the United States has and will
continue to spur industry concentration.
Regulatory complexities alongside the
high capital costs of building and
maintaining large-scale recycling
facilities (such as those that serve large
cities) have favored the expansion of
large industry operators, who can take
economies of scale. Despite this increase
in industry concentration, however, the
majority of industry operators will
continue to be small and locally focused,
especially outside of large urban areas.
Access to the latest available

and most efficient technology
and techniques
Technology can increase the efficiency
of the recycling process and require
less labor to sort recyclables.
Must comply with government regulations

Compliance with federal, state and
municipal government legislation,
regulations and license conditions is
compulsory for firms in this industry.
Having an extensive distribution/

collection network
A large customer base can improve the
reliability of recycled inputs. Firms
that also have waste collection services
can channel waste to their own
recycling facilities.
Profit
Profit, measured as earnings before
interest and taxes, is expected to account
for 3.9% of industry revenue in 2016,
down from about 8.3% in 2012. Several
factors effect industry profit margins,

which have fluctuated significantly over
the five-year period. Most important to
the volatility of profit are the large
fluctuations in the price of recyclable
WWW.IBISWORLD.COM
21
materials, the sale of which generate an

estimated 75.8% of industry revenue. The
prices of recycled paper, plastic and glass
can fluctuate wildly. These price
fluctuations have an enormous impact on
industry profit, especially if special care is
not taken when negotiating contracts
with waste collectors and purchasers of
sorted recycled commodities.
During the past five years, the falling
price of oil has undermined industry
revenue. The Waste Collection Services
industry supplies the Recycling Facilities
industry with unsorted waste to sort into
recycled material streams. Although the
decline in oil prices has allowed operators
in that industry to reduce the prices they
charge companies in the Recycling
Facilities industry, it has also made newly
produced materials, such as plastics,
cheaper for industry operators.
Consequently, industry operators have
seen a decline in the prices they have
been able to charge and demand for

recovered materials, ultimately
undermining margins.
Purchases
Purchases represent the largest cost for
companies in the Recycling Facilities
industry. Far and away the largest
industry purchase is the unsorted waste
that industry operators purchase from
waste collection service providers. The
price paid to waste collection service
providers is usually based on the market
rate for recycled commodities.
Therefore, when the market price of
recycled commodities increases, so does
the price paid to suppliers. This can
greatly increase purchase costs when
prices are high.
Large waste management service
providers that operate in both the Waste
Collection Services and Recycling
Facilities industries are not affected by
Sector vs. Industry Costs

Average Costs of
all Industries in
sector (2016)
Industry Costs
(2016)
6.5
3.9
100
n Profit
n Wages
n Purchases
n Depreciation
n Marketing
n Rent & Utilities
n Other
17.7
80
Percentage of revenue
Cost Structure
Benchmarks
continued
51.1
60
49.3
40
18.7
20
1.9
3.5
16.4
1.9
5.5
4.0
0.6
19.0
0
WWW.IBISWORLD.COM
22
Cost Structure
Benchmarks
continued
these swings in purchases costs.

Therefore, large companies such as Waste
Management and Republic Services have
a competitive advantage in comparison
with other industry players. In 2016,
purchases are expected to account for an
estimated 49.3% of industry revenue.
Wages
Wages are expected to account for 17.7%
of industry revenue in 2016. Wage costs as
a percentage of industry revenue have
increased since 2011. Similarly, the
number of industry employees and total
industry wage costs are expected to grow
strongly in the years to 2016. Wage costs
as a percentage of revenue have increased
as the recent decline in revenue has
pushed wages share upward. However, as
the industry slowly continues to become
more concentrated, the sorting and
processing of recyclable materials will
increasingly be carried out in large,
technically advanced facilities as opposed
to in small community recycling centers.
Consequently, wages share of revenue is
not expected to increase substantially
during the next five years.
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Mediumand the
trend is S
teady
Competition in this industry is based on

geographical location, technical
expertise, the price of recycled goods
sold, a companys ability to take
economies of scale, and the quality of
recycled goods produced. Geographical
location is essential. Recycling facilities
must be located far enough away from
residential and commercial areas in order
to be certified, while still being located
close enough to population and business
centers to convince waste collection
service providers and individuals to bring
their recyclable materials there.
The quality of recycled materials that
industry operators sell is also an
important aspect of industry competition.
Rent and utilities, depreciation

and marketing
Rent and Utilities costs, which include
spending on electricity and the renting
of recycling facility buildings, are
expected to account for 4.0% of
industry revenue in 2016. Depreciation
and marketing costs are in turn
expected to account for 5.5% and 0.6%
of industry revenue, respectively. All of
these costs have increased since 2011
as expanded industry activity has led
to a great need to rent out facilities,
the use of larger facilities, the use of
more machinery and equipment and a
greater ability and desire to advertise
to potential customers.
License, insurance, administrative
and other costs
Other costs account for an estimated
19.0% of industry revenue. These costs
are related to licenses and fees,
insurance, administration and a
number of other costs. These costs
make up a large share of industry
revenue as many are connected to the
high level of industry regulation.
Recyclables must meet industry

specifications in order for them to be
used to produce new quality products.
For example, recycled glass (or cullet) is
in significantly less demand and has less
revenue potential when it is mixed
(various colors combined) or
contaminated. Glass manufacturers have
limits on the amount of mixed cullet they
can use for manufacturing new
containers and generally prefer not to
buy it.
Large waste management companies
that operate within both the Recycling
Facilities industry and the Waste
Collection Services industry (IBISWorld
report 56211) are at a distinct advantage
compared with smaller industry
WWW.IBISWORLD.COM
23
Basis of Competition
continued
operators. These large companies are

able to keep a stable stream of waste
flowing into their recycling facilities
regardless of the market price for
recycled commodities. This ensures
Barriers to Entry
Barriers to entry for the Recycling

Facilities industry are moderate. Demand
for recycling services is expanding across
the country as the population becomes
more environmentally conscious, with
many communities recycling needs being
underserved by an inadequate number of
recycling facilities. Expanding into such
areas is therefore not particularly
difficult. Opening a small recycling center
that serves a local communitys needs is
requires moderate capital expenditure. A
new recycling facilitys largest cost is
likely to ensure that the center meets all
of a states and municipalitys specific
recycling regulations, yet new recycling
facilities are often also provided with
financial support from these same state
and municipal governments.
Developing a new recycling center can
be much more difficult in an area that
already has extensive recycling service
infrastructure. Competing with the large
recycling facilities that serve some larger
cities is extremely difficult given that
their size and high-tech equipment allows
Level & Trend

arriers to Entry
B
in this industry
are M
ediumand
Increasing
Industry
Globalization
Level & Trend
lobalization
G
in this
industry is L owand
the trend is S
teady
This industry has a low level of globalization.

There are no imports or exports for this
industry, and foreign-owned establishments
play almost no direct role in industry
operations. Despite this, the Recycling
Facilities industry is indirectly involved in
stable purchases costs for their recycling

facilities. They are also able to ensure
that their recycling facilities have access
to large amounts of waste, which is not
always possible for smaller operators.
Barriers to Entry checklist

Competition
Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation & Policy
Industry Assistance
Medium
Low
Growth
Medium
Medium
Heavy
High
for the recycling of much larger

quantities of material much more
efficiently and quickly than smaller
operators can. Even competing with
smaller operators is difficult if they
have been established for a long time,
as communities often become
accustomed to using a particular local
recycling center. As recycling becomes
more established across the country,
and larger, more advanced recycling
facilities become more pervasive, it will
be more difficult for new companies to
enter the industry.
trade in that recycled materials are used as

inputs in the production of goods that are
traded internationally. In addition, while not
an industry-specific business activity,
recycled commodities are imported and
exported abroad.
WWW.IBISWORLD.COM
Major Companies
Waste Management Inc. | Republic Services Inc. | Other Companies
Major players
(Market share)
Republic Services Inc. 7.0%
72.1%
Other
Waste Management Inc. 20.9%
Player Performance
Waste Management
Inc.
Market share: 20.9%
Waste Management Inc. (WM) is

headquartered in Houston and is the
largest solid waste management company
in North America. The companys
operations include 310 transfer stations,
267 landfills and 17 waste-to-energy
plants. It has 390 collection operations
and about 22,000 collection and transfer
vehicles, the largest trucking fleet in the
waste management sector. WM serves
about 21.0 million residential customers
and 2.0 million commercial customers.
The most relevant business segment
for this industry is the companys
subsidiary Waste Management Recycle
America LLC (WM Recycle America). It
is one of the largest collectors of
recyclable materials in the United States,
collecting, processing and marketing
about 8.0 million tons of paper, plastic,
glass, aluminum and ferrous metals
annually through 120 material recovery
facilities. The company plans to increase

the total volume of material recycled to
more than 20.0 million tons by 2020. In
September 2008, WM Recycle America
acquired Gulf Coast Recycling, which
generated about 8.0% of WM Recycle
Americas total company revenue in 2015.
WM also acquired recycling company
Greenstar LLC in January 2013 for
$170.0 million, an acquisition that
further expanded the companys
industry-specific operations.
WM also operates six secondary
processing facilities where material
received from material recovery facilities
is further processed for sale as raw
commodities to be used in the
manufacture of finished goods. Materials
recycled include plastics and rubber,
electronic equipment and commodities,
which are sold to customers worldwide.
The prices received for recycled materials
Waste Management Inc. (industry-specific segment) - financial

performance*
Year
Revenue
($ million)
(% change)
Operating Income
($ million)
2011
2012
1,485.5
N/C
168.8
N/C
1,276.6
-14.1
121.9
-27.8
2013
1,350.9
5.8
47.7
-60.9
2014
1,278.8
-5.3
160.2
235.8
2015
1,094.4
-14.4
89.5
-44.1
2016
1,072.7
-2.0
110.0
22.9
*Estimates
(% change)
SOURCE: ANNUAL REPORT AND IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
Republic Services
Inc.
Market share: 7.0%
such as wastepaper, aluminum and glass

are highly volatile, so the company enters
into contracts to reduce the volatility of
prices for commodities traded worldwide.
Financial performance
Waste Managements industry-specific
revenue is forecast to decline at an
annualized rate of 6.3% to $1.1 billion
over the five years to 2016. Prior to the
current five-year period, growth was
driven by WM Recycle Americas
implementation of its customer
recycling rebate program in partnership
with RecycleBank. Additionally, the
overall increase in prices for recycled
commodities facilitated growth due to
high demand for materials with
recycled content.
Despite substantial growth in 2011 as a
result of the expansion of recycling
services, revenue has been more volatile
since 2012. In 2012, increased regulatory
scrutiny led to a reduction in collected
recyclable tonnage, resulting in lackluster
performance during the year. WM
Recycle Americas most significant
challenges over the five-year period
included reduced volumes in waste due
to sharp declines in residential and
commercial construction, substantial
declines in consumer and business
spending and an unusually weak
recyclable commodities market early in
the five-year period. According to the
companys latest financial information,

revenue for the recycling segment
declined in due to fluctuations in the
market prices and demand for recycled
commodities, including fibers, aluminum
and glass.
The company reports that volatile fuel
costs are an important factor in its
financial performance. Operating
expenses periodically increase
throughout the year due to WM Recycle
Americas reliance on fuel purchased in
the open market. Costs have been
slightly offset through adjusted pricing
of recyclable commodities and
consolidation of the companys capital.
Moreover, the recent collapse in oil
prices has undermined the success of the
company by making newly produced
plastics cheaper relative to recycled
products. Consequently, the companys
recyclables segment has declined as a
result of falling commodity prices and
decking demand.
However, the companys
internalization policy has created
greater revenue opportunities as certain
business segments have been
consolidated and exposure to costs has
declined. For example, the company
paid to share and lease disposal
properties that could have been
purchased outright. This policy is
expected to increase profit margins over
the five years to 2021.
Headquartered in Phoenix, Republic

Services Inc. is the second-largest provider
of services in the domestic nonhazardous
solid waste market. It provides
nonhazardous solid waste collection
services for commercial, industrial,
municipal and residential customers
through 340 collection companies in 41
states and Puerto Rico. Its operations in
Florida, California and other domestic
markets experiencing higher-than-average
population growth in the past several

years have supported the companys
internal growth strategy. In addition, the
company owns or operates 201 transfer
stations, 193 active solid-waste landfills
and 67 material recovery (recycling)
facilities. Republic Services presence in
the Recycling Facilities industry expanded
substantially in December 2008 when the
company acquired Allied Waste Industries
for $12.1 billion.
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Republic Services recycling operations

are generally required to fulfill
obligations under long-term municipal
contracts for residential collection
services. These recycling facilities
primarily sort recyclable paper,
aluminum, glass and other materials.
Most of these recyclable materials are
collected internally by the companys
residential collection operations. In some
areas, the company collects commercial
and industrial solid waste, which is
sorted at its facilities and then salvaged,
repackaged and sold to third parties.
However, the nonrecyclable waste is
disposed of at landfills or incinerators.
Whenever possible, Republic Services
reduces its exposure to fluctuations in
recyclable commodity prices by using
third-party facilities, thereby minimizing
its recycling investment. Republic
Services controls what it cites as the
worlds largest recycling facility in
Milpitas, CA.
In 2015, the companys 67 recycling
centers collected nearly 5.1 million tons
of recyclable materials; these facilities
generate revenue through the processing
and sale of old corrugated cardboard
(OCC), old newspaper (ONP), aluminum,
glass and other materials. Together, these
operations accounted for about 4.0% of
Republic Services total company

revenue. During 2014, the company
invested about $20.0 million to develop
and upgrade its recycling centers. The
company invested an additional $36.0
million in 2015.
Financial performance
Republic Services industry-specific
revenue is forecast to contract, falling at
an annualized rate of 3.9% to $359.8
million over the five years to 2016. Similar
to major player Waste Management Inc.,
Republic Services recycling revenue has
been constrained over the five-year period
by volatile commodity prices. However,
the company hedges its exposure to
changes in commodity prices by entering
into multiple future price agreements,
specifically related to forecast OCC and
ONP sales. Nonetheless, the decline in
commodity prices tied to the collapse in
fuel prices has undermined the
performance of the company, with
industry-relevant revenue declining 8.3%
in 2015, along with a projected fall of 3.3%
during the current year. However, in the
coming years, Republic Services is
expected to continue to expand its
presence in the industry as demand for
recycling services continues to grow at a
national level.
Republic Services Inc. (industry-specific operations) - financial

performance*
Year
Revenue
($ million)
(% change)
Operating Income
($ million)
2011
2012
438.6
N/C
83.1
N/C
349.0
-20.4
56.8
-31.6
2013
374.6
7.3
53.9
-5.1
(% change)
2014
405.8
8.3
56.8
5.4
2015
372.0
-8.3
63.6
12.0
2016
359.8
-3.3
60.8
-4.4
*Estimates
SOURCE: ANNUAL REPORT AND IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Other Companies
Waste Connections Inc.
Estimated market share: Less than 1.0%

Waste Connections Inc. is a vertically
integrated solid waste management
company that provides waste
collection, transfer, disposal and
recycling services in 32 states. The
company owns or operates a network
of 155 solid-waste collection
operations, 69 transfer stations, 37
recycling operations and 62 active
landfills. In addition, the company
provides intermodal services for the
rail-haul movement of cargo and
solid-waste containers in the Pacific
Northwest, and operates oil and
natural gas exploration injection wells
and waste treatment facilities. The
company is expected to generate $45.6
million in industry-specific revenue in
2016. Waste Connections industryspecific revenue has declined over the
past five years due to fluctuations in
the price of recycled commodities and
the closure of two recycling operations.
Casella Waste Systems Inc.
Estimated market share: Less than 1.0%

Casella Waste Systems Inc. is a regional,
integrated solid-waste services company
that provides collection, transfer, disposal
and recycling services. It manufactures
finished products using recyclable materials
primarily throughout the eastern portion of
the United States and parts of Canada. The
company also markets recyclable materials
processed at its facilities and recyclables
purchased from third parties. Casella owns
or operates 34 solid-waste collection
operations, 44 transfer stations, nine
Subtitle D landfills, 18 recycling facilities,
four landfill gas-to-energy facilities and one
landfill permitting construction and
demolition materials. Casella is expected to
generate about $44.6 million in industryspecific revenue in 2016. Over the past five
years, Casella has divested nonintegrated
recycling assets located outside its core
operating regions of New York,
Massachusetts, Vermont, New Hampshire,
Maine and northern Pennsylvania.
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility

Regulation & Policy | Industry Assistance
Capital Intensity
Level
The level
of capital
intensity is M
edium

medium to high level of capital
intensity, with the average industry
firm spending $0.31 on capital for every
dollar spent on labor. In its most basic
form, industry activities require
relatively little capital expenditure. The
collection, sorting and packaging of
recycled materials can all be done by
hand, while the machinery required to
convert most recyclable products back
into commodities is in general relatively
minimal. For example, the most basic
method of recycling plastic bottles
involves sorting them by the type of
plastic they are made of, removing
paper labels and melting the plastic,
which can then be used to create other
products. The majority of industry
Capital intensity
Capital units per labor unit

0.5
0.4
0.3
0.2
0.1
0.0
Economy
Administration,
Business Support &
Waste Management
Services
Recycling
Facilities
Dotted line shows a high level of capital intensity
operators, which are small local

recycling facilities, continue to use little
capital in their operations.
Tools of the Trade: Growth Strategies for Success

Investment Economy
Recreation, Personal Services,

Health and Education. Firms
benefit from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Industrial Machinery &

Equipment Wholesaling
Cardboard Box &
Container Manufacturing
Traditional Service Economy
Paper Mills
Wholesale and Retail. Reliant
on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore firms
must use new technology
or improve staff training to
increase revenue growth.
Sewage Treatment Facilities

Waste Collection Services
Change in Share of the Economy
Capital Intensive
Labor Intensive
New Age Economy
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
WWW.IBISWORLD.COM
Capital Intensity
continued
Capital spending increase

Industry capital spending has grown
somewhat over the past five years as the
industry has consolidated and the number
of large and complex recycling facilities
has increased. Infrared and x-ray sensors
are used to spot and mark different types
of recyclable materials, while magnetic
pulleys and eddy currents are used to sort
these different types of materials into
different recycling streams. In addition,
larger facilities typically use more complex
machinery and recycling methods in order
to create recycled materials of higher
quality. For example, intense heat can be
used to convert plastic materials back into
petroleum (which plastic is made from), in
a process called thermal depolymerization.
Technology & Systems Just as with capital intensity, the level of

Level
The level
of
Technology Change
is M
edium
technological complexity in the Recycling

Facilities industry varies tremendously
depending on the size of the industry
operator. The majority of industry
operators are small low-tech operations
that serve local communities. These small
operators receive unsorted waste, either
from waste collection service providers or
from individuals who drop off their
recyclables at the facility, which is then
sorted into different recyclable material
streams by hand.
Processing plants
The breaking down of plastic and glass
bottles, cardboard and other recyclable
materials into plastic, glass and paper is
generally outsourced to a larger
processor, which will service a number of
recycling facilities over a larger
geographic area. The technology that
processors use to refine glass and paper
has remained relatively stable. Glass
needs to be crushed and melted before
being reformed into a new glass product.
Chemicals are used to break paper and
cardboard down into pulp, which can
Nonetheless, the past two years have

seen the industrys capital intensity fall
substantially. While capital spending,
measured depreciation expenses as a
proxy, has increased, the industrys
spending on wages has increased as a
share of revenue over the past five
years. This has stemmed from the drop
in crude oil prices, which have made
recycled goods less competitive
compared to virgin materials and
caused a decline in industry revenue.
While wages, too, have fallen, revenue
has declined at a faster rate, causing
wages share of revenue to rise.
Consequently, the industrys capital
intensity has declined, even as capital
spending has increased.
then be reformed into new paper

products. Conversely, while basic
recycling of plastic bottles simply
involves sorting bottles by type of plastic
and melting them into unformed plastic,
advancing technology has expanded the
ways in which plastic bottles can be
recycled. As mentioned in the capital
intensity section above, thermal
depolymerization is used to convert
plastic into petroleum. Heat
compression is another form of plastic
recycling that does not require different
types of plastic to be sorted but requires
high energy costs.
Technology replacing labor
Larger recycling facilities that conduct
both the sorting and processing steps of
the recycling process often have advanced
methods of sorting recyclables, some of
which require almost no labor at all. In
these facilities, unsorted recyclable
materials are placed on a conveyor belt
that moves the materials past an array of
machinery. Infrared and x-ray sensors
spot and mark different types of plastics
and paper products so that they can be
WWW.IBISWORLD.COM
Technology & Systems sorted accordingly. Eddy currents and

magnetic pulleys remove different types
continued
machinery used does not jam. This

system is far more efficient than
traditional recycling facilities, and
eliminates the need to sort recyclable
materials prior to their pick up by waste
collection service providers. As these
types of facilities become more common,
the Recycling Facilities industry will
increase its use of technology.
Revenue Volatility
During the past five years. Since 2015,

the world price of crude oil has collapsed,
decreasing the cost of virgin materials.
Consequently, recycled materials have
lost much of their comparative advantage
during this period, causing demand, and
therefore industry revenue, to decline.
of metals from the stream so that they

can be sorted separately. The conveyor
belt then diverts different materials into
different streams based on weight.
Workers at these facilities are only
needed to remove large pieces of waste
from the conveyor belt to ensure that the
of
Volatility is H
igh
Price fluctuations for recycled materials

A significant factor in industry revenue
volatility is the wild swings in the market
price for recyclable materials. Given that
an estimated 39.3% of industry revenue
is dependent on the sale of recycled
materials, such swings in recycled
commodity prices can have a large effect
on industry revenue year-over-year.
A higher level of revenue
volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.
When a firm makes poor
investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.
Dependence on government spending

Industry revenue also depends on the
availability of government funding, which
accounts for about a quarter of industry
revenue. Recycling facilities derive most
of their public funding state and local
governments who pay the facilities to
carry out recycling services for the
communities under their jurisdiction.
State and local government spending on
recycling facility services has been
growing and will continue to grow as
Volatility vs Growth
1000
Revenue volatility* (%)
Level
The level

high level of revenue volatility.
Environmental consciousness has been
growing across the country, and with it,
demand for industry services has been
increasing. This has resulted a steady
trend of substantial medium-term growth
in industry revenue. However, a number
of factors can mean large revenue swings
on a year-to-year basis.
Hazardous
Rollercoaster
100
10
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
Five-year annualized revenue growth (%)

* Axis is in logarithmic scale
WWW.IBISWORLD.COM
Revenue Volatility
continued
these governments seek to fulfill their

voters growing demands for recycling
services. However, funding from state
and local governments decreases
during difficult economic times when
state and local government budgets are
strained. Funding for recycling is often

cut during these periods since
spending on recycling services is
ultimately more discretionary than
spending on police, healthcare and
pensions is.
Regulation & Policy

heavily regulated and regulations
concerning the industry are increasing.
There are currently no federal laws that
directly concern recycling, with all
regulations affecting the industry having
been implemented by state and local
governments. State and local regulations
are often quite extensive. Regulations
limit where recycling facilities can be
located, and in some cases mandate that
recycling centers exist in specific locations.
For example, California law mandates that
there must be a recycling collection center
in every shopping zone where businesses
accumulate more than $2.0 million per
year. California also mandates that
recycling centers must be open at least 30
hours a week, at least 5 of which cannot be
between 9 am and 5 pm on weekdays.
States that have deposit-refund systems,
such as New York, Vermont and Michigan,
require that recycling centers pay a
specific deposit amount (usually $0.05$0.10 per bottle or can) to any person or
business that brings their recyclables to
their center.

also positively affected by the many
regulations directed toward landfills.
Landfills and other waste depositories are
often subject to intense regulations in
order to prevent damage to the
environment or public health. The
Resource Conservation and Recovery Act
of 1976 establishes a regulatory
framework for the transportation,
treatment, storage and disposal of
hazardous and nonhazardous solid waste.
Landfills must meet federal, state and
local regulations during their design,
construction, operation and closure.
Many states have implemented laws
concerning landfilling as well. As of
March 2014, businesses in Massachusetts
that produce more than one ton of food
waste a week are barred from depositing
this waste in landfills. Governments in 35
states have also established laws that
strictly limit where landfilling can occur.
These types of regulations make the use
of landfills less attractive, and in some
cases impossible, resulting in increased
demand for the use of recycling facilities.
The Recycling Facilities industry receives

a high level of government assistance. A
large number of this industrys operators
owe their existence to municipal and
state government spending on the
development of a local recycling
infrastructure. Governments will also pay
direct subsidies to recycling facilities. In
addition, public schools often sponsor
programs designed to educate children

on the benefits of recycling, which is an
indirect form of assistance that will
further increase demand for the
industrys products in the future.
Recycling facilities would still exist
without government support. Small local
facilities would receive their materials
and financial support from
Level & Trend

he level of
T
Regulation is H
eavy
and the trend
is I ncreasing
Industry Assistance
Level & Trend
he level of Industry
T
Assistance is H
igh
and the trend
is I ncreasing
WWW.IBISWORLD.COM
Industry Assistance
continued
environmentally conscious individuals and

nonprofit organizations, while large
integrated waste management companies
such as Waste Management Inc. would
likely continue to divert some of the waste
they have collected via their waste
collection operations to be sold on the
market. However, this industry would be

much smaller without government
assistance. Government support for the
industry is expected to increase further as
growing environmental consciousness puts
pressure on local and state governments to
increase funding for recycling programs.
WWW.IBISWORLD.COM
33
Key Statistics
Industry Data
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Industry
Revenue Value Added Establish($m)
($m)
ments
4,642.8
1,074.8
1,043
5,250.6
1,224.3
1,169
4,241.2
995.5
1,153
5,582.1
1,375.2
1,157
6,555.4
1,596.3
1,258
5,946.7
1,504.0
1,435
5,759.7
1,300.6
1,484
5,807.3
1,557.2
1,510
5,204.2
1,441.4
1,506
4,944.6
1,340.5
1,518
5,323.5
1,503.1
1,611
5,625.0
1,665.3
1,692
5,856.1
1,787.8
1,765
6,053.9
1,941.7
1,839
6,172.1
2,100.6
1,910
22/26
25/26
25/26
840/1370
857/1370
777/1370
Annual Change
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Revenue
(%)
13.1
-19.2
31.6
17.4
-9.3
-3.1
0.8
-10.4
-5.0
7.7
5.7
4.1
3.4
2.0
2/26
270/1370
Key Ratios
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
IVA/Revenue
(%)
23.15
23.32
23.47
24.64
24.35
25.29
22.58
26.81
27.70
27.11
28.24
29.61
30.53
32.07
34.03
25/26
835/1370
Industry
Value Added
(%)
13.9
-18.7
38.1
16.1
-5.8
-13.5
19.7
-7.4
-7.0
12.1
10.8
7.4
8.6
8.2
1/26
95/1370
Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Establishments
(%)
12.1
-1.4
0.3
8.7
14.1
3.4
1.8
-0.3
0.8
6.1
5.0
4.3
4.2
3.9
4/26
224/1370
Enterprises Employment
884
15,803
937
16,215
920
16,137
920
16,429
921
18,291
1,079
21,268
1,117
22,020
1,141
23,895
1,143
23,741
1,155
23,308
1,223
24,877
1,283
26,199
1,338
27,305
1,394
28,325
1,447
29,134
24/26
24/26
771/1370
805/1370
Enterprises Employment
(%)
(%)
6.0
2.6
-1.8
-0.5
0.0
1.8
0.1
11.3
17.2
16.3
3.5
3.5
2.1
8.5
0.2
-0.6
1.0
-1.8
5.9
6.7
4.9
5.3
4.3
4.2
4.2
3.7
3.8
2.9
4/26
1/26
239/1370
185/1370
Exports/
Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Figures are in inflation-adjusted 2016 dollars. Rank refers to 2016 data.
Exports
---------------N/A
N/A
Revenue per
Employee
($000)
293.79
323.81
262.82
339.77
358.39
279.61
261.57
243.03
219.21
212.14
213.99
214.70
214.47
213.73
211.85
4/26
741/1370
Imports
---------------N/A
N/A
Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages/Revenue
(%)
14.03
12.69
14.69
11.70
11.19
13.85
14.61
15.21
17.34
17.71
17.71
17.76
17.84
17.95
18.11
26/26
783/1370
Wages
($m)
651.5
666.1
623.1
653.1
733.4
823.6
841.4
883.2
902.2
875.5
942.8
998.9
1,045.0
1,086.8
1,118
25/26
844/1370
Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Employees
per Est.
15.15
13.87
14.00
14.20
14.54
14.82
14.84
15.82
15.76
15.35
15.44
15.48
15.47
15.40
15.25
10/26
629/1370
Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages
(%)
2.2
-6.5
4.8
12.3
12.3
2.2
5.0
2.2
-3.0
7.7
6.0
4.6
4.0
2.9
2/26
204/1370
World price
of crude oil
($ per barrel)
195.9
215.0
190.8
210.1
229.9
235.2
245.3
257.0
233.3
236.0
244.9
252.4
256.6
259.7
262.8
N/A
N/A
Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Average Wage
($)
41,226.35
41,079.25
38,613.13
39,752.88
40,096.22
38,724.84
38,210.72
36,961.71
38,001.77
37,562.21
37,898.46
38,127.41
38,271.38
38,368.93
38,374.41
15/26
931/1370
World price
of crude oil
(%)
9.7
-11.3
10.1
9.4
2.3
4.3
4.8
-9.2
1.2
3.8
3.1
1.7
1.2
1.2
N/A
N/A
Share of the
Economy
(%)
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
25/26
857/1370
WWW.IBISWORLD.COM
Jargon & Glossary
Industry Jargon
DEPOSIT-REFUND SYSTEMA system in which bottles

purchases from retailers come attached with an added
deposit cost. Consumers can return these bottles to
recycling facilities in order to redeem this cost.
EDDY CURRENTElectric currents that create magnetic
fields. Used to pull metal objects off of conveyor belts
during the sorting of recyclable materials.
INORGANIC MUNICIPAL SOLID WASTEMunicipal
solid waste, excluding food waste, yard trimmings and
other organic wastes.
MUNICIPAL SOLID WASTE (MSW)Non-hazardous

waste produced by households and commercial and
retail operations.
PROCESSING FACILITYFacility where separated
recyclable materials received from a material recovery
facility are broken down and reformed into commodities
that can be used as inputs in the production of new
goods.
MATERIAL RECOVERY FACILITYA specialized plant

that receives, separates and prepares recyclable
materials for further processing or sale to downstream
wholesalers and manufacturers.
IBISWorld Glossary
BARRIERS TO ENTRYHigh barriers to entry mean that

new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.
CAPITAL INTENSITY Compares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity.
High capital intensity is more than $0.333 of capital to
$1 of labor; medium is $0.125 to $0.333 of capital to $1
of labor; low is less than $0.125 of capital for every $1 of
labor.
CONSTANT PRICESThe dollar figures in the Key
Statistics table, including forecasts, are adjusted for
inflation using the current year (i.e. year published) as
the base year. This removes the impact of changes in
the purchasing power of the dollar, leaving only the
real growth or decline in industry metrics. The inflation
adjustments in IBISWorlds reports are made using the
US Bureau of Economic Analysis implicit GDP price
deflator.
DOMESTIC DEMANDSpending on industry goods and
services within the United States, regardless of their
country of origin. It is derived by adding imports to
industry revenue, and then subtracting exports.
EMPLOYMENTThe number of permanent, part-time,
temporary and seasonal employees, working proprietors,
partners, managers and executives within the industry.
ENTERPRISE A division that is separately managed
and keeps management accounts. Each enterprise
consists of one or more establishments that are under
common ownership or control.
ESTABLISHMENTThe smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.
EXPORTSTotal value of industry goods and services sold

by US companies to customers abroad.
IMPORTS Total value of industry goods and services
brought in from foreign countries to be sold in the
United States.
INDUSTRY CONCENTRATIONAn indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUEThe total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the firm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industrys contribution to GDP, or
profit plus wages and depreciation.
INTERNATIONAL TRADEThe level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%, medium is 5% to 20%, and high is more
than 20%. Imports/domestic demand: low is less than
5%, medium is 5% to 35%, and high is more than
35%.
WWW.IBISWORLD.COM
Jargon & Glossary
IBISWorld Glossary
continued
LIFE CYCLEAll industries go through periods of growth,

maturity and decline. IBISWorld determines an
industrys life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industrys products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT Businesses with no
paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.
PROFITIBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a companys profitability. It is
calculated as revenue minus expenses, excluding interest
and tax.
VOLATILITYThe level of volatility is determined by

averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
20%; high volatility is 10% to 20%; moderate
volatility is 3% to 10%; and low volatility is less than
3%.
WAGESThe gross total wages and salaries of all
employees in the industry. The cost of benefits is also
included in this figure.
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Recycling Facilities in The US Industry Report

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Recycling Facilities in the USApril 2016 1

One mans trash: Revenue will increase following a

IBISWorld Industry Report 56292

Recycling Facilities in the US

2 About this Industry

20 Market Share Concentration

20 Key Success Factors

20 Cost Structure Benchmarks

Key External Drivers

24 Waste Management Inc.

11 Industry Life Cycle

25 Republic Services Inc.

13 Products & Markets

13 Products & Services

29 Technology & Systems

31 Regulation & Policy

34 Jargon & Glossary

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Recycling Facilities in the USApril 2016 2

About this Industry

This industry operates recycling facilities,

The primary activities of this industry are

into recycled commodities (i.e. convert

The major products and services in this industry are

22132 Sewage Treatment Facilities in the US

For additional information on this industry

Recycling Facilities in the US April 2016

Annual Growth 11-16

Annual Growth 16-21

Demand from recyclable material

Revenue vs. employment growth

Products and services segmentation (2016)

Key External Drivers

Demand from recyclable

Regulation for the

World price of crude oil

Sale of recycled materials

Life Cycle Stage

Recycling Facilities in the USApril 2016 4

Executive Summary | Key External Drivers | Current Performance

The Recycling Facilities industry

and local government funding for

Key External Drivers

Demand from recyclable

commodity prices. Although the market for

material available to be recycled. Increasing

Recycling Facilities in the USApril 2016 5

amount of paper that is recycled in industry

continues to be deposited in landfills.

Demand from recyclable material

Key External Drivers

Recycling Facilities in the USApril 2016 6

The Recycling Facilities industry is

commodities. As a result, industry revenue

Much of the industrys success can be

at 4.38 pounds per day, according to

Recycling Facilities in the USApril 2016 7

Another important cause for the growth of

plastic, eroding the price advantage of

Traditionally, recycling programs have

efficiently. For example, Republic

Recycling Facilities in the USApril 2016 8

Industry profit is expected to account for