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ATTN: Michael. Re: Recycling profitability?

Started by cannon_fodder, March 04, 2009, 09:36:39 AM

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cannon_fodder

Recycle Michael, as the local expert on the subject I was curious on how the recycling market was doing since the commodity markets have collapsed?  I know it is run as a business, so I'm not asking for a bottom line or anything.  Just curious.

I know newsprint has lost nearly all its value from a recent spike.  But has glass held steady?  Aluminum?  Plastics?  Or have they all taken a real beating.

If it has all lost its value, what are the prospects for some kind of subsidy from Obama to the industry in his green initiatives?    Certainly if car manufacturers are worthy of bail out. . .

Anything you care to share to sooth my curiosity is appreciated.  Any advice on what we can do to help is of course welcomed.  But if it is a sore subject, I understand.
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I crush grooves.

RecycleMichael

I am crying...recycled materials prices have plummeted. I may be in real trouble.

I spent yesterday begging for money in front of the Tulsa trash authority.

To answer your question...glass price has been steady, but it hasn't been worth much for a while now. I am the largest glass bottle collector in Oklahoma and my hauling costs to Okmulgee outweigh my profits.

Newspaper is what is really hurting me. We used to pay our bills with revenue from newspapers. The price drop has been breath-taking. On Labor Day I sold used newspapers for 8 cents a pound. By Christmas Day the price had dropped to 2 cents a pound and on Valentine's Day, the price dropped to zero. Beginning Friday I will start back getting almost a penny.

Plastic bottle revenue is closely tied to oil prices and oil has dropped from $140 a barrel to $40 a barrel. I now get zero for soap bottles and pop bottles, but I still get 5 cents a pound for milk jugs.

Metal prices have dropped about 75% in the last six months as well.

Yes. I am trying every angle, including trying for Obama money. There is a section in the stimulus package about energy savings and recycling fits very well. Unfortunately, I don't have a lot of support from the Oklahoma delegation right now for environmental subsidy.

If prices don't improve soon, we are out of business. 
Power is nothing till you use it.

cannon_fodder

Sorry to hear that RM.

Is it better for me to stockpile items in my shed until prices go back up or keep dropping them off monthly?
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I crush grooves.

we vs us

Quote from: RecycleMichael on March 04, 2009, 04:01:46 PM
I am crying...recycled materials prices have plummeted. I may be in real trouble.

I spent yesterday begging for money in front of the Tulsa trash authority.

To answer your question...glass price has been steady, but it hasn't been worth much for a while now. I am the largest glass bottle collector in Oklahoma and my hauling costs to Okmulgee outweigh my profits.

Newspaper is what is really hurting me. We used to pay our bills with revenue from newspapers. The price drop has been breath-taking. On Labor Day I sold used newspapers for 8 cents a pound. By Christmas Day the price had dropped to 2 cents a pound and on Valentine's Day, the price dropped to zero. Beginning Friday I will start back getting almost a penny.

Plastic bottle revenue is closely tied to oil prices and oil has dropped from $140 a barrel to $40 a barrel. I now get zero for soap bottles and pop bottles, but I still get 5 cents a pound for milk jugs.

Metal prices have dropped about 75% in the last six months as well.

Yes. I am trying every angle, including trying for Obama money. There is a section in the stimulus package about energy savings and recycling fits very well. Unfortunately, I don't have a lot of support from the Oklahoma delegation right now for environmental subsidy.

If prices don't improve soon, we are out of business. 

Great question CF, and depressing response, RM. 

FWIW, I've come to really respect all the work the MET has done here in Tulsa.  I know that it accomplishes things that so-called "green" cities like Chicago just got around to doing this year -- I'm thinking specifically about fairly reliable residential pickup and cheap startup costs for the average joe (that'd be me). Dunno what you're doing right, RM, but it's good stuff.  It'd be a tragedy if the MET went under.

Cats Cats Cats

1) I know anything will "Help" but is this shortfall small enough to be filled by local fundraising.  Or is it going to probably require City/Somebody with a lot of cash investment?

2) Is there anything we can do to help. (See cannon_fodder's "Is it better for me to stockpile items in my shed until prices go back up or keep dropping them off monthly?")   I am sure a lot of people here would like to help out as much as possible.  Donating time, not giving you items you can't sell, etc.







RecycleMichael

Don't stockpile. Recycling isn't just separating or collecting, it must include reprocessing and reuse. I appreciate the kind sentiments.

Yes, there are a few things you can do to help. One is to get us more customers. If every Tulsan recycled one pop/beer can per week, we would make $150,000 per year. Keep recycling. More material will allow us to be more efficient.

Only about one out of five Tulsans recycle. Find those other four people and get them started. This summer will be council and mayor elections. Let the people running for office that having a good recycling program is important.

Yes, you can volunteer at our many events. We have 40 public activities in the next 100 days. We need volunteers to do everything from unloading cars to manning information booths. Call our office at 584-0584 and ask for Shelley.

Thanks again to all.
Power is nothing till you use it.

godboko71

Some maybe dumb questions and sorry if they are to off topic:

Have you tried working with apartment complexes to get them to offer recycling centers near their trash centers?

Reason I ask is because most low and mid end apartment complexes have commercial trash bins, for just a little more space they could have bins for Paper, plastic, and metal, the basic common house hold stuff. If they encouraged there tenets to recycle your collection rates would increases drastically and their trash bills will plummet as they would need smaller containers and less frequent pickups.

Also what about Schools and Parks?

The Zoo is the only park I can think of on the top of my head that recycles. As for schools I know some do drives from time to time BUT I can't think of any that have recycle bins in place all the time.
Thank you,
Robert Town

naenae42day

RM,
I am going to bring it up to my office services folks again.  We populate 4 floors of the BOK tower.  I personally recycle, and most of my floor brings me their items.  With my company subsidizing out soda machines...the majority of us by our soda at work...both in cans and bottles.  I have even personally offered to place bins in the break rooms if folks would use them.  I think I just need to get with it.  I mean with the MET right there on the corner...it just seems silly that BOK tower building services don't offer something.  We do recycle paper, but I think that is more a security issue than anything.
I will keep you posted. 
Tori

RecycleMichael

I am surprised that more apartments don't offer recycling. You would think that it would give them a competitive edge for new tenants. It is not impossible and I would help them start, but am unable to provide collection. The University of Tulsa has done a real good job offering recycling to their apartments/dormitory.

I know there are a few parks that have recycling bins. I have used the ones at Whiteside park near the playground recently.

I know that some of the BOK tower is recycling. I met with BOK folks last summer for some other facilities and am working with a vendor that has started setting bins in the tower.
Power is nothing till you use it.

Gaspar

RM,
I know some beverage and food service reps that work the schools and many of the businesses with cafeterias that offer soda in cans.  They are in front of the right people weekly.  What if they put together a program in these locations that helped promote their products (i.e. recycle bins with the Pepsi logo on them) would that be a possible avenue for growth?

They also work bars and nightclubs that serve canned soda and beer.

It's good business for you and good PR for them.

They do it in other states, is there anything that prevents us from doing it here?
When attacked by a mob of clowns, always go for the juggler.

dayzella

Is there an option for a household doing the curbside recycling program to pay more than the $2 a month?  In a small-time benefactor kind of move?  Or to do a one-time payment/gift of more than the $2 with a click of a mouse button?

I would love to pay for my neighbor's share.  He wants to add his recycling to mine, and I don't have a nice way of telling him that's just incredibly cheap, so I let him.  But still.  It's 2 freakin' dollars.  /digression

RecycleMichael

First to gaspar...Yes, the beverage companies do want their logos on recycling bins and are probably willing to help out. I have bins that I also can lend out. Any school or church that is serious about recycling should call me. I have some bins bought with a state grant and am receiving some more with a grant from Alcoa.

To dayzella...the city does not have a way for you to pay an extra amount on your recycling bill to give your neighbor his own bin. I am pleased he is recycling, but cheating the city out of two dollars a month ain't helping anybody but him.
Power is nothing till you use it.

cannon_fodder

RM:

Have you ever lobbied for or considered a bottle/can deposit in the State of Oklahoma?  I understand the pitfalls of such a move, but I like driving through Minnesota or Iowa and NOT seeing any bottles or cans along the roads. 

Would such a move help or hurt the MET financially?  Could you just reposition to facilitate the actual recycling portion of the deposit? 

/kind of a tangent, but we have a decent recycling discussion going on here
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I crush grooves.

RecycleMichael

Yes. we have two bottles bills being discussed again this year in the Oklahoma legislature.

They die in committee every year.
Power is nothing till you use it.

dayzella

Quote from: RecycleMichael on March 06, 2009, 07:06:02 AM
To dayzella...the city does not have a way for you to pay an extra amount on your recycling bill to give your neighbor his own bin. I am pleased he is recycling, but cheating the city out of two dollars a month ain't helping anybody but him.

Damnit, don't make me feel bad, Michael.  I was justifying it because it keeps his family's milk jugs out of the landfill.