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A New Frontier for Economic Development
by Robert L. Arner, Chair, Buy Recycled Business Alliance Committee, Virginia Recycling Association
Introduction
There is an emerging industry in Virginia-an industry in which companies are transforming recycled materials into new goods. Numerous new and existing Virginia companies have recognized that manufacturing recycled products into new goods translates into further growth and business development for the Commonwealth.
An indicator of recycling's credibility is evidenced by the fact that in 1995 the Virginia Recycling Machinery and Equipment Tax Credit Program accepted 445 applications valued at $332 million dollars. While the full extent of this prosperity has yet to be identified, a report from the Institute for Local Self Reliance, "Recycling Means Business in Baltimore, D.C. and Richmond" cites:
The 27 manufacturers identified in the region use over 1.4 million tons of recycled materials to produce close to 5 million tons of products each year. Sales of these products generate almost $5.6 billion annually-more than $1,100 per ton of recycled-content product, compared to $120 per ton processed material. Recycling-based manufacturing has been estimated to generate in the region about $2.1 billion in "recycling related" product sales revenues.
There are many forms of economic development from collecting, processing, brokering, reusing and remanufacturing secondary products which offer numerous future opportunities for Virginia. Virginia can become a leader in recapturing recycled materials as new secondary supplies to further expand its economy and provide for the environmental prosperity that all Virginians can enjoy in years to come. Since the Commonwealth is the leading importer of waste, Virginia recycling enterprises can utilize the existing transportation infrastructure.
The burgeoning environmental industry is becoming identified. The Virginia Recycling Association (VRA), Recycling Association of Central Virginia, Northern Virginia Waste Management Board, U.S. Conference of Mayors, USEPA's Waste Wi$e, and the National Recycling Coalition's Buy Recycled Business Alliance jointly sponsor a "Buy Recycled" Virginia campaign to support the market for recycled materials. Since it began in September 1993, this Alliance has steadily grown, and now includes more than 100 large and small businesses, governmental and environmental organizations, and others all across Virginia.
Recently a University of Virginia graduate class assisted in exploring the "Buy Recycled" campaign to identify the economic implications of Virginia's diverse recycling industry. Table 1 identifies various recycling areas of commerce.
Statewide
The Virginia Buy Recycled Business Alliance is developing formal statewide "Buy Recycled" programs. Already a Steering Committee representing five major Virginia companies (two others may join) has been formed to help direct this national effort here in the Commonwealth. The Virginia Recycling Association several years ago held a one-day "Buy Recycled" conference. This August a more formal workshop was held at VRA's annual conference in Roanoke. VRA also provides technical assistance, helps procurement officials, conducts surveys, and fosters public education to encourage the purchase of recycled products-an essential step toward completing the recycling process.
Numerous Regional Efforts Have Been Made
The Recycling Association of Central Virginia helped recruit 58 companies that now purchase recycled products and established an educational display.
Northern Virginia efforts include:
The Northern Virginia Waste Management Board/Northern Virginia Planning District Commission helped recruit over fifty companies and provides extensive staff support in researching, speaking, and writing. Also, a "Buy Recycled" display was set up at the Commission. The City of Falls Church conducted a month-long (March 1995) "Buy Recycled" Treasure Hunt. Fairfax County recently won "Best of Show" for its Buy Recycled Exhibit at its 1996 Fairfax Fair, and held in April 1995 a half-day "Buy Recycled" Conference.
There have been numerous other efforts in Charlottesville and Roanoke.
Identifying Economic Development Opportunities
As shown in other states, buying recycled stimulates new investment opportunities for increasing commerce in the Commonwealth. Union Camp in Franklin, Bear Island in Ashland, Rubbermaid in Winchester, James River in Richmond and Virginia Fibre in Amherst are just a few Virginia businesses that have transformed what was once post-consumer waste materials into new resources for future growth in Virginia.
In Virginia, it can easily be estimated that tens of millions of dollars are spent and thousands of jobs are created by companies involved in collecting, upgrading, refurbishing, processing, brokering, manufacturing, reusing, composting and selling new secondary/recycled products.Increased business expansion depends upon financial, regulatory and market constraints.
In Virginia, as in other states throughout the U.S., an excess supply of secondary materials and modest demand for recycled goods has slowed the industry. Without utilizing recycled materials as new products or manufacturing feedstock, "recycling" fails to happen. Many industries could expand production if new avenues to recapture consumer by-products are pursued.
Just in the paper recycling industry, Virginia has significant activity for which most states would be envious. It has been calculated that the recycled paper industry in the Commonwealth contributed $537 million dollars and 3,810 jobs from 127 firms. Virginia has an opportunity to become a leader in recapturing recycled materials as new secondary supplies to further expand its economy.
According to Robert T. Lund, Professor at Boston University, "There are about 1,400 remanufacturers in Virginia in the eight major product categories-automotive, compressors, electrical, all types of machinery, office furniture, tire retreaders, toner cartridges, industrial valves, and other-in this industry. These firms would have sales of approximately half a billon dollars and would directly employ approximately 7,000 people. Additional people will be employed at firms supplying goods and services to these firms and in wholesale and retail firms handling their products."
Future Options
One of the greatest achievements in the "Buy Recycled" movement is the development of the National Recycling Coalition Business Alliance (NRCBA), a business-to-business forum. Already, 30 states are working successfully with the NRCBA, using tools such as educational materials, research, workshops and seminars, to extol the many virtues of creating and sustaining a "Buy Recycled" program.
Finally...
The real challenge of this movement is to connect the Commonwealth's 81 curbside programs and 575 drop-off sites with the enormous amount of commercial and industrial recycling from warehouses, factories, mills and other industries to close the loop with Virginia manufactures to save money, energy and provide new resources for commerce.
"Buy Recycled" is a market development tool to stimulate the growth of collecting recyclables to be made into new materials that stimulate commerce. With a commitment and partnership among state, industry, environmental organizations, and local governments, economic opportunity can be developed and sustained. Through individuals and businesses working together on a shared commitment, Virginia can be recognized as a leader in this future environmental industry.
Table 1: "Buy Recycled" Efforts in Virginia
Each year, Americans generate 100 million tons of construction and demolition (C&D) waste. In Virginia, C&D recovery activity is more apparent around urban regions, with seven companies and 15 companies/organization recycling wood. It has been estimated by one industry source that roughly 400,000 tons of concrete are recycled by five different firms each year in the Commonwealth.
There are about 1,400 remanufacturers in Virginia in the eight major product categories-automotive, compressors, electrical, all types of machinery, office furniture, tire retreaders, toner cartridges, industrial valves, and other-in this industry. These firms would have sales of approximately half a billon dollars and would directly employ approximately 7,000 people.
In 1995 in Virginia alone, 1 to 1.5 million tons of asphalt was taken up or milled off and reused (98% is recycled into new asphalt pavement).
The Commonwealth runs 81 curbside programs and maintains 575 drop-off sites and 20 MRFs.
It has been calculated that the recycled paper industry in the Commonwealth contributes $537 million and 3,810 jobs from 127 firms. In June 1995 the Virginia Employment Commission indicated that there are 127 employers statewide in the paper and allied products industries employing 17,500 people earning $681 million.
DEQ reported recycling in 1993 as being 348,000 tons OCC; 198,000 tons ONP, and 232,000 tons of mixed paper.
In Virginia, steel is accepted for recycling at 27 scrap processors and four auto shredder companies.
Virginian's recycled 25,452 tons of aluminum in 1991, and 35,005 tons in 1993. There are 50 buy-back recycling programs in Virginia.
There are 15 yard trimming compost facilities in Virginia. Diverting and composting yard waste could annually save Virginians $30 million.
Of the 140,000 tons of glass generated each year in Virginia, 15,000-40,000 tons of glass were not recycled. Approximately 35,260 tons and 82,152 tons of recycled glass containers were collected in 1991 and 1993. Cycle Systems Chester glass processing plant receives glass from approximately 20 Virginia companies.
In the state, 13 million gallons of used oil are available for recycling every year either as a fuel or new lubricant. There is a potential to recycle the 10.4 million light duty oil filters, and 1.5 million gallons of antifreeze each year.
R. Frazier Inc., of Salem, Virginia processes about 3,000 mainframe computers a year for reuse, and recently boosted reconditioning from 300 to 3,000 old personal computers a month. Their projected revenue is $8 million.
If you are interested in joining for free the Virginia Buy Recycled Business Alliance and Waste Wi$e, write to the Virginia Recycling Association, 2210 Mount Vernon Avenue, Alexandria, VA 22301
or fax 703-549-9264.
Robert Arner works as an Environmental Planner for the Northern Virginia Planning District Commission (NVPDC).
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