NRRANRRARecycling Jobs – Recycling Jobs –

Now and in the FutureNow and in the Future

CRI’s Jobs Study:CRI’s Jobs Study:Returning to WorkReturning to Work

Susan V. CollinsSusan V. CollinsContainer Recycling Container Recycling

InstituteInstituteJune 5, 2012June 5, 2012

Container Recycling Institute:

Striving to make North America a

global model for the

collection and quality

recycling of packaging materials.

Mission Statement Mission Statement

CRI’s mission is to make North America a CRI’s mission is to make North America a global model for the collection global model for the collection andand quality quality recycling of packaging materials. We do this recycling of packaging materials. We do this by:by:

►Creating and maintaining a database on containers Creating and maintaining a database on containers and packagingand packaging

►Studying container and packaging reuse and Studying container and packaging reuse and recycling options and legislation, including deposit recycling options and legislation, including deposit systems, and their environmental and economic systems, and their environmental and economic impactsimpacts

►Educating on recycling options for government, Educating on recycling options for government, elected officials, for citizen groups, the print and elected officials, for citizen groups, the print and broadcast media, publications and industry groupsbroadcast media, publications and industry groups

►Creating national networksCreating national networks

Prepared by:

Sound Resource Management

Project BackgroundProject Background►Development of performance indicators: Development of performance indicators:

weight; volume; energy savings; pollution weight; volume; energy savings; pollution prevention; cost; and impact on domestic prevention; cost; and impact on domestic jobsjobs

►Limited specificity in data on jobs from Limited specificity in data on jobs from recycling;recycling;

►Need to further explore how & why Need to further explore how & why these jobs are created, and provide a these jobs are created, and provide a jobs estimate.jobs estimate.

Project Goals Project Goals ► Measure direct impacts on domestic jobsMeasure direct impacts on domestic jobs

► From increased recycling of beverage From increased recycling of beverage containers containers

Glass, aluminum & PETGlass, aluminum & PET

► Compare different types of recycling Compare different types of recycling programs to landfill disposalprograms to landfill disposal

► Create a calculator: “Measuring the Impact Create a calculator: “Measuring the Impact from Recycling on Jobs” calculator from Recycling on Jobs” calculator (MIRJcalc) (user inputs available)(MIRJcalc) (user inputs available)

CONTAINERREDEMPTION:

DEPOTRVM

RETAIL

WASTE/GARBAGE COLLECTION

CURBSIDE COLLECTION:

MANUALAUTOMATED

Landfill

PET RECYCLING / RECLAIMERS

ALUMINUM CLEANING

GLASS BENEFICIATION

END MARKETS/MANUFACTURERS:Glass Bottles; Fiberglass; Aggregate; Plastic products; Aluminum sheet

LIMESTONESODA ASHAPLITE SILICA BORATEPX TPA MEG NO IMPACT ON DOMESTIC VIRGIN ALUMINUM PRODUCERS

VIRGIN PET POLIMERIZATION

EXPORTEXPORT

CONSUMPTION:AL; PET; GLASS

SOLD/GENERATED(in tons)

Primary Processing / Material Recovery

Facility (MRF)

Transfer

Primary Processing / Material Recovery

Facility (MRF)

Transfer

FLOW CHART: DOMESTIC LABOR (USA) DIRECTLYRELATED TO COLLECTION OF BEVERAGE CONTAINERS FOR RECYCLING AND DISPOSAL

Study MethodologyStudy Methodology

► Primary data collection – data points each for “stage”:Primary data collection – data points each for “stage”:

1.1. Collection (includes transport to MRF or transfer Collection (includes transport to MRF or transfer station)station)

2.2. Operations at MRF, transfer station or landfillOperations at MRF, transfer station or landfill

3.3. Transport to landfillTransport to landfill

4.4. Secondary processing Secondary processing

5.5. End-use manufacturing (virgin or recycled End-use manufacturing (virgin or recycled content) content)

6.6. Raw materials extraction and refiningRaw materials extraction and refining

7.7. Administration/supervision/auxiliary positionsAdministration/supervision/auxiliary positions

Study MethodologyStudy Methodology► ““NET Jobs impact from increased recycling” is NET Jobs impact from increased recycling” is

calculated as: calculated as:

► Number of jobs created when more beverage Number of jobs created when more beverage containers are recycledcontainers are recycled

► MinusMinus the number of jobs lost when fewer containers the number of jobs lost when fewer containers are landfilledare landfilled

► MinusMinus the number of jobs lost in raw-materials the number of jobs lost in raw-materials extraction and processing when recycled content extraction and processing when recycled content replaces virgin materials in product manufacturingreplaces virgin materials in product manufacturing

Model ExclusionsModel Exclusions

Recycling-reliant employment Recycling-reliant employment

Indirect effectIndirect effect

Induced effectInduced effect

Out-of-countryOut-of-country

Quantifying Jobs Impact DataQuantifying Jobs Impact Data

► Identify a reasonable estimate for the Identify a reasonable estimate for the number of employees (FTEs) per number of employees (FTEs) per 1000 ton throughput of PET, 1000 ton throughput of PET, Aluminum and Glass at each stage Aluminum and Glass at each stage (collection, processing and secondary (collection, processing and secondary processing)processing)

► Identify a reasonable estimate for the Identify a reasonable estimate for the FTEs for extraction and preparation FTEs for extraction and preparation of virgin material. of virgin material.

RecipesRecipes

►PET: Paraxylene + ethylene oxide PET: Paraxylene + ethylene oxide converted to MEGconverted to MEG

►Silica, soda ash, aplite, Limestone, Silica, soda ash, aplite, Limestone, BoratesBorates

Overview of FindingsOverview of Findings

Finding #3Finding #3

►Material throughput is the primary Material throughput is the primary driver of recycling jobs.driver of recycling jobs.

►Policies that require more recycling Policies that require more recycling can create more jobscan create more jobs

Residential, commercial, etc.Residential, commercial, etc.

Findings on Curbside Findings on Curbside CollectionCollection

►Urban, rural, geographically diverseUrban, rural, geographically diverse

►No significant difference for jobs from No significant difference for jobs from single- versus dual-streamsingle- versus dual-stream

►Critical factor was automated versus Critical factor was automated versus manualmanual Automated is .79 FTEs per 1,000 tonsAutomated is .79 FTEs per 1,000 tons Manual is 2.11 FTEs per 1,000 tonsManual is 2.11 FTEs per 1,000 tons

►Also included administration, customer Also included administration, customer service, mechanics, etc.service, mechanics, etc.

Finding #5Finding #5

► Jobs gained in recycling far outweigh any Jobs gained in recycling far outweigh any jobs lost in extraction of virgin materials.jobs lost in extraction of virgin materials.

Increased jobs reflects a trade-off between Increased jobs reflects a trade-off between labor and machinery labor and machinery

Does not necessarily mean an increase in Does not necessarily mean an increase in costcost

Finding #8Finding #8

► Jobs gained in recycling far exceed any jobs Jobs gained in recycling far exceed any jobs lost in extraction of virgin materials, lost in extraction of virgin materials, landfilling or domestic manufacturing.landfilling or domestic manufacturing.

Full report shows:Full report shows:►Increases from recyclingIncreases from recycling►Decreases from landfilling, virgin material extraction Decreases from landfilling, virgin material extraction

and domestic manufacturingand domestic manufacturing►Total net increaseTotal net increase

Comparing the Jobs from Recovering Glass vs. Virgin Raw Material Extraction

8.3

0.1 0.04

0.6

0

1

2

3

4

5

6

7

8

9

Recycled rawmaterial - 1000

tons of glass

Virgin rawmaterials for1000 tons ofglass bottles

Virgin rawmaterial for 1000tons of fibreglass

Virgin rawmaterials for1000 tons of

aggregate

FTE

s p

er 1

00

0 t

ons

Finding on PET Virgin Finding on PET Virgin ProductionProduction

►Domestic, 83%Domestic, 83%

► Imported, 17%Imported, 17%

Comparing the Jobs from Recovering PET vs. Virgin Raw Material Production

9.9

0.6

0

2

4

6

8

10

12

Recycled raw material - 1000 tons ofPET

Virgin raw materials for 1000 tonsof PET resin

FTEs

per

10

00

ton

s

Current US PET Reclamation(Based on 1.2Billion Lbs/yr)

Un-used PET Reclamation capacity

28%

Current US PET Reclamation

72%

Finding #6Finding #6►U.S. PET reclaimers operate at less than 72% of U.S. PET reclaimers operate at less than 72% of

capacity (vs. 60% in report)capacity (vs. 60% in report)

► Increasing to capacity would:Increasing to capacity would:

Process an additional 230,000 tons annually in the U.S.Process an additional 230,000 tons annually in the U.S.

Create nearly 500 jobs in the U.S.Create nearly 500 jobs in the U.S.

►New capacity has come on line in 2012New capacity has come on line in 2012

Total PET Collected in US (domestically processed + exported: 1,557M lbs

Exported, 781M lbs

50%

Processed Domestically

776M Lbs50%

Finding #7Finding #7

►The U.S. exports 400,000 tons of PET to overseas The U.S. exports 400,000 tons of PET to overseas markets each yearmarkets each year

► If this material were processed in the U.S.If this material were processed in the U.S.

It would create 800 jobs in the U.S.It would create 800 jobs in the U.S.

►Most of the exported PET is lower-quality balesMost of the exported PET is lower-quality bales

ConclusionsConclusions

►As recovery tonnage increases, employment As recovery tonnage increases, employment related to collection, processing and secondary related to collection, processing and secondary processing also increases (excepting exports)processing also increases (excepting exports)

►Losses that occur in primary resource-Losses that occur in primary resource-extraction activities are greatly outnumbered extraction activities are greatly outnumbered by the jobs created in material-recovery by the jobs created in material-recovery activities.activities.

ConclusionsConclusions

► Improved material quality directly impacts U.S. Improved material quality directly impacts U.S. jobs; clean/separated recyclables more likely to jobs; clean/separated recyclables more likely to stay in the U.S. for use by domestic stay in the U.S. for use by domestic manufacturers rather than be exported to manufacturers rather than be exported to foreign marketsforeign markets

Beyond JobsBeyond Jobs►U.S consumer products manufacturers use U.S consumer products manufacturers use

recycled materials to meet other goalsrecycled materials to meet other goals

Reduce energy useReduce energy use

Reduce emissions and other environmental impactsReduce emissions and other environmental impacts

Reduce production and raw materials costsReduce production and raw materials costs

Beyond Jobs, continuedBeyond Jobs, continued►U.S consumer products manufacturers use U.S consumer products manufacturers use

recycled materials to meet other goalsrecycled materials to meet other goals

Meet internal or industry goals for recycled content Meet internal or industry goals for recycled content and sustainabilityand sustainability

Satisfy public demand for “greener” products, Satisfy public demand for “greener” products, packaging and business practicespackaging and business practices

Economic Value of Buried Economic Value of Buried MaterialsMaterials

2828

Material Type (beverage only)

Price per ton Value of Existing Scrap Recycling (Recovered)

Value of Scrap Currently Wasted

Aluminum $1,300 $910 million $1 billion

PET $640 $325 million $1.3 billion

Glass $25 $68 million $175 million

Total N/A $1.303 billion $2.475 billion

Beyond Jobs, GlassBeyond Jobs, Glass►For every 10% increase in cullet use, there is a For every 10% increase in cullet use, there is a

corresponding 4% savings in energycorresponding 4% savings in energy

►For every ton of cullet used, they save 1.1 tons of silica For every ton of cullet used, they save 1.1 tons of silica (sand), lime, dolomite and soda(sand), lime, dolomite and soda

►For every 10% increase in cullet use:For every 10% increase in cullet use:

Six degree celsius reduction in furnace temp, which reduces Six degree celsius reduction in furnace temp, which reduces particulates by 7%, and extends furnace lifeparticulates by 7%, and extends furnace life

3% reduction in fossil fuel use; 6% reduction in oxides of 3% reduction in fossil fuel use; 6% reduction in oxides of nitrogen (Nox)nitrogen (Nox)

How can this research help How can this research help me? me?

►Use Use Impact DataImpact Data to help estimate jobs to help estimate jobs impact for a recovery programimpact for a recovery program

►Support waste recovery systems that Support waste recovery systems that ensure high rates of capture and keep ensure high rates of capture and keep material clean/separated. This material material clean/separated. This material will create more local and domestic jobs will create more local and domestic jobs than would a dirtier mix of recyclables than would a dirtier mix of recyclables ton for ton.ton for ton.

Data TransparencyData Transparency

►We included all data in appendicesWe included all data in appendices

►We invite you to use it to your benefitWe invite you to use it to your benefit

Jobs CalculatorJobs Calculator► Input two-letter code for State to automatically Input two-letter code for State to automatically

calculate the number of jobs that will be created calculate the number of jobs that will be created

► User can customize and change certain inputsUser can customize and change certain inputs

► Percent of households with curbside recyclingPercent of households with curbside recycling

► Capture rates for multi-family, non-curbside single-family, Capture rates for multi-family, non-curbside single-family, self-haul, and away-from-homeself-haul, and away-from-home

► Curbside automated versus manual mixCurbside automated versus manual mix

► Allocation of materials to various end-marketsAllocation of materials to various end-markets

Jobs CalculatorJobs Calculator► Input two-letter code for State to automatically Input two-letter code for State to automatically

calculate the number of jobs that will be created calculate the number of jobs that will be created

► User can customize and change certain inputsUser can customize and change certain inputs

► http://www.container-recycling.org/

► http://www.container-recycling.org/issues/jobs.htm

► Jobs page has CRI Study, “Returning to Work,” the Jobs page has CRI Study, “Returning to Work,” the jobs calculator, and links to several other studies on jobs calculator, and links to several other studies on recycling jobsrecycling jobs

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