I
5
I
RECYCLING is WORKINQ
in the United States
Participating
Organizations:
• U.S. Environmental
Protection Agency
• National Recycling
Coalition
• California Integrated Waste
Management Board
• Delaware Economic
Development Office
• Empire State Development
(New York)
• Florida Department of
Environmental Protection
• Illinois Department of
Commerce and
Community Affairs
• Indiana Department of
Commerce
• Massachusetts Department
of Economic Development
• Minnesota Office of
Environmental Assistance
• Missouri Environmental
Improvement and Energy
Resources Authority
• Nebraska Department of
Economic Development
• New Jersey Department of
Environmental Protection
• Northeast Recycling Council
• Ohio Department of
Natural Resources
• Pennsylvania Department
of Environmental Protection
• Recycle Iowa (an initiative
of the Iowa Department of
Economic Development)
• Vermont Agency of
Natural Resources
• Wisconsin Department of
Natural Resources
The U.S. Rec/c//ng Economic Information (REI) Study is a ground-
breaking national study that demonstrates the importance of recy-
cling and reuse to the U.S. economy. The study, commissioned by
the U.S. Environmental Protection Agency (EPA) and numerous states
through a cooperative agreement with the National Recycling Coalition
(NRC), clearly shows what many have known for a long time—that
"Recycling is Working."
By converting waste into valuable raw
materials, recycling creates jobs, builds
more competitive manufacturing indus-
tries, and adds significantly to the U.S.
economy. Comprehensive national data on
the economic impact of recycling and reuse
is critical to the continued growth and suc-
cess of the industry by:
• Demonstrating to the investment com-
munity that recycling is a viable, estab-
lished industry with a proven track
record.
• Assisting government agencies with
strategic planning and policy decisions
to ensure the continued growth of recy-
cling.
• Identifying business opportunities for
entrepreneurs based on emerging com-
modity areas and industry sectors.
• Providing recycling and reuse advocates
with an important tool to help promote
awareness and build support.
Key Findings of the Study
Recycling and Reuse Add Value to
the U.S. Economy
The recycling and reuse industry is a sig-
nificant force in the U.S. economy that
makes a vital contribution to job creation
and economic development. According to
the study, the industry consists of approxi-
mately 56,000 establishments that employ
Summary of Estimates of Direct Economic Activity
Annual Payroll and Estimated Receipts are in $ 1,000. Throughput is in thousands of tons.
Data Type
Establishments
Employment
Annual Payroll
Estimated Receipts
Industry Sector
Recycling Recycling Recycling Reuse and
Collection Processing Manufacturing Remanufacturing
9,247 12,051
32,010 160,865
956,875 3,826,360
1,974,516 41,753,902
Estimated Throughput1 191,082 191,082
8,047
759,746
29,181,749
178,390,423
157,545
26,716
169,183
2,747,498
14,182,531
N/A
Industry
Total
56,061
1,121,804
36,712,482
236,301,371
N/A
1. Throughput is amount of recovered material recycled and includes manufacturing scrap sent for recycling. It excludes materials
prepared for fuel use and in-house process scrap returned to the manufacturing process. Throughput estimates are summed to
avoid triple counting at collection, processing, and manufacturing stages.
) Printed on paper that contains at least 50 percent postconsumer fiber.
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over 1.1 million people, generate an annual pay-
roll of nearly $37 billion, and gross over $236 bil-
lion in annual revenues. Within the industry, the
economic impact of the recycling manufacturing
sector far exceeds the recycling collection, process-
ing, and reuse sectors.
Local Recycling and Reuse Spur
"Downstream" Economic Impacts
Recycling businesses collect, process, and broker
recovered materials as well as manufacture and dis-
tribute products made with recovered materials.
Investment in local recycling collection and pro-
cessing, as well as strong government policies,
spurs significant private sector investment in recy-
cling manufacturing and promotes economic
growth.
The study also tallied the impact of recycling
on other support industries such as accounting
firms and office supply companies for a grand
total of 1.4 million jobs "indirectly" supported by
the recycling and reuse industry. These jobs have a
payroll of $52 billion and produce $173 billion in
receipts. Spending by employees of the recycling
and reuse industry leads to another 1.5 million
jobs with a payroll of $41 billion and produces
receipts of $146 billion. The recycling and reuse
industry also generated roughly $12.9 billion in
federal, state, and local tax revenues, with 80 per-
cent going to federal and state government.
Contribution of
(in $ millions)
Industry Sector
Recycling Collection
Recycling Processing
Recycling Manufacturing
Reuse/Remanufacturing
Total
Recycling
Federal
200
700
5,400
600
6,900
and Reuse
to
Government
Direct Effects Revenues
State Local
100
400
2,600
300
3,400
2,
2,
100
300
100
200
600
Total
400
1,400
10
1
12
,000
,200
,900
Revenues
Federal
i
20
2
24
300
,700
,500
,100
,600
Total Effects Revenues
State Local
200
800
9,900
1,000
11,900
100
600
7,800
800
9,400
Total
600
3,200
38,200
3,900
45,800
Other Benefits of Recycling
Recycling is good for the economy and the
environment. Recycling's benefits are found at
every stage of the life cycle of a consumer prod-
uct—from the mining of raw materials through
use and final disposal. By redirecting waste to
serve as raw materials for industry, recycling
provides a number of important benefits:
Reducing pollution and conserving natural
resources.
Saving energy by reducing the need to
extract and process "virgin" raw materials to
manufacture new products.
Reducing greenhouse gases such as carbon
dioxide, methane, and nitrous oxide.
Stimulating the development of greener tech-
nologies.
Avoiding the cost of waste disposal in land-
fills and incinerators.
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Recycling is a Diverse
Industry
The recycling and reuse indus-
try is an elaborate network of
public sector institutions and
private companies. In fact, the
study identified 26 different
types of recycling organiza-
tions (see below). Recycling is
an integrated system that starts
with collection of materials by
individuals, businesses, and
municipalities, involves pro-
cessing of recycled materials,
and leads to manufacturing of
new products with recycled
content.
Four major manufacturing
industries account for over
half of the economic activity
of the industry: paper mills, steel mills, plastics
converters, and iron and steel foundries. But the
recycling industry also includes companies that are
quickly finding a market niche, including comput-
er demanufacturers, organics composters, and plas-
tic lumber manufacturers.
Types of Recycling and Reuse
Organizations
• Private and government staffed collection centers
• Compost and miscellaneous organics producers
• Material recovery facilities
• Recyclable material wholesalers
• Glass container manufacturing plants
• Other glass product producers
• Nonferrous secondary smelting and
refining mills
• Nonferrous foundries and product producers
• Paper and paperboard mills/deinked market
pulp producers
• Paper-based product manufacturers
• Pavement mix producers (asphalt and aggregate)
• Plastics reclaimers and converters
• Rubber product manufacturers
• Steel mills
• Iron and steel foundries
Recycling Manufacturing Industry Employment by
Major Material Group
250,000
225,000
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0
cr
Commodity Type
About The Study
The multi-year REI project utilizes the best
available data from 1997—1999. The national
study was accomplished through a comprehen-
sive analysis of both existing economic data
and reasonable estimates based on targeted sur-
veys of recycling businesses and sophisticated
economic modeling. For the first time, the
national study allows for sound economic
comparisons across different regions and states
in the country.
The study establishes an important bench-
mark of the economic impact of recycling and
reuse. It lays the groundwork for future studies
that could be conducted on a regular basis to
track industry growth and trends.
Computer and electronic appliance
demanufacturers
Used motor vehicle parts remanufacturers
Retail used merchandise sales
Tire retreaders
Wood reuse organizations
Materials exchange services
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Comparison of Industry Employment
2,500,000
2,000,000 -
1,500,000 -
E 1,000,000
500,000
0
Comparison of Annual Wages per Job
$45,000
$40,000
$35,000
$30,000
I $25,000
I $20,000
$15,000
$10,000
$5,000
$0
For More Information
For additional information on the REI study, see the following:
• EPA's Jobs Through Recycling Program—www.epa.gov/jtr
• National Recycling Coalition—www.nrc-recycle.org
Recycling and Reuse are
Competitive with Other Major
Industries
The materials collected for recycling
should not be considered waste or
garbage—they are valuable com-
modities that contribute significantly
to our growing economy. The increas-
ing supply of recyclables fuels manu-
facturing industries and makes them
more competitive and sustainable.
As a driver of economic activity,
the recycling industry compares
favorably to other key industries,
such as automobile manufacturing
and mining. Of particular signifi-
cance is that recycling far outpaces
the waste management industry
because recycling adds value to
materials, contributing to a growing
labor force. Many of these jobs are
in inner-city urban areas where job
creation is vital to the economy. In
these and other areas, recycling pro-
vides a large number of jobs that
generally pay above the average
national wage.
A large number of jobs are also
supported by the reuse industry.
These range from more traditional
thrift shops and antique dealers, to
modern businesses such as comput-
er demanufacturers and pallet
rebuilders. As a whole, the reuse
industry employs nearly 170,000
workers in more than 26,000 estab-
lishments nationwide. It supports
an annual payroll of $2.7 billion
and generates approximately $14.1
billion in revenues.
Office of Solid Waste and Emergency Response
(5306W)
EPA530-F-02-005
www.epa.gov
January 2002
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