United States Environmental Protection Agency Solid Waste and Emergency Response (5306W) EPA530-F-97-039 August 1997 http://www.epa.gov JTR Grantee Series Minnesota JOBS THROUGH RECYCLING Minnesota Office of Environmental Assistance Prior to the creation of the Recycling and Reuse Business Assistance Center (RBAC), Minnesota had already made a substantial financial commitment to recycling market development. The Minnesota Office of Environmental Assistance (OEA) applied for a Jobs Through Recycling (JTR) grant to build on existing efforts with the goal of developing an RBAC to focus on elements of the waste stream not yet recovered. OEA planned to significantly expand existing market development programs by: • Targeting industries important to Minnesota's economy through more focused market devel- opment efforts. • Expanding cooperative activities among the state's recycling and market development pro- grams and state and local economic develop- ment programs. • Implementing a program to provide profes- sional assistance (via contract) to developing recycling and reuse manufacturing businesses. Specifically, OEA targeted efforts on the wood fiber, plastics, and composites (e.g., fiberglass reinforced plastic and wood fiber reinforced ther- moplastics) industries in Minnesota—which had the potential to boost the state's use of recycled materials, improve economic competitiveness, and increase the number of jobs in Minnesota. The RBAC, fully staffed with four professionals and one team leader, began outreach in April 1995. Staff came from different private sector backgrounds, allowing for a new level of diversity in recycling market development expertise. PROGRAM ACTIVITIES The RBAC provided assistance to local businesses in five specific areas: Business Assistance The RBAC helped companies review business and marketing plans and located technical resources (e.g., small business development offices) to assist the companies in preparing these plans. They also inventoried state and regional Grant Type: RBAC Office Awarded: Office of Environmental Assistance Project Partners: Minnesota Technical Assistance Program (MnTAP) Department of Transportation Department of Trade and Economic Development Year Awarded: 1994 Finding: $462,375 in EPA funding $152,125 in state funding $614,500 in total funding Materials Targeted: Wood fiber Plastics Composites Contact Information: Timothy Nolan or Chris Cloutier Minnesota Office of Environmental Assistance 520 Lafayette Road, North, Second Floor St. Paul, MN 55155-4100 Phone: 612 215-0259 Fax: 612 215-0246 E-Mail: tim.nolan@ moea.state.mn.us ------- JOBS THROUGH RECYCLING business assistance organizations and programs, and educated state economic development personnel about the recy- cling industry. The RBAC assisted nine companies with business management, by reviewing or helping to develop strategic plans and by conducting research on tax laws, zoning require- ments, and other related issues. The RBAC assisted nine companies with business management, by reviewing or helping to develop strategic plans and by conducting research on tax laws, zoning requirements, and other related Technical Assistance RBAC staff provided technical assis- tance to businesses and other agencies to identify and remove barriers to the use of recovered materials by dissemi- nating technical information and con- ducting customized research for target- ed recycling businesses. This assistance ranged from researching the recyclabili- ty of coated latex paper to the develop- ment and publication of specifications for the use of organic shingle scrap in roadway asphalt. Staff assisted 25 busi- nesses by conducting onsite visits and meeting facilitation, by researching a variety of topics, and by actively refer- ring businesses to other sources of tech- nical assistance. Financial Assistance The RBAC funded 12 businesses through contracted assistance for engi- neering, research, testing, and business services. Staff also assisted in preparing grant applications and locating other sources of funding. Product and By-Product Marketing Assistance The RBAC provided product and mar- keting assistance to nine companies, helping them with preliminary research, testing, and securing markets. Promotion and Publicity Staff promoted the RBAC program to targeted industries and worked to develop emerging and expanding recy- cling ventures in the state. They also developed and disseminated economic and environmental business profiles for recycling and reuse organizations. CHALLENGES OVERCOME The RBAC encountered and overcame the following obstacles: • Initial startup was difficult. To over- come this challenge, the RBAC used the first 6 months to hire staff, hold training sessions, and get organized. The center staff also became familiar with potential goals and issues pertain- ing to Minnesota recycling markets, and targeted activities. • Getting the word out about RBAC services was difficult. Making busi- nesses aware of the RBAC was ini- tially difficult, because it was a new idea for many businesses and partner agencies. To get the word out, the RBAC created a tip sheet listing a brief description of its available ser- vices. RBAC staff also conducted outreach, including meetings and presentations, to targeted industries and partners. This helped formalize the RBAC's identity. • Time and resources were limited. The RBAC had to conduct initial research and prioritize potential pro- jects to maximize limited time and resources. Finally, the RBAC had to combat businesses' fear of getting involved with the government. To overcome this, staff used a strong outreach campaign to present the RBAC in a positive light. LESSONS LEARNED RBAC staff learned from their experi- ence and provided the following advice to new grantees: • Spend the first few months on internal planning and getting the word out. Prepare and distribute a fact sheet about the RBAC and its services. Make outreach a priority. • Target priority materials. In target- ing wood, plastics, and composites, the RBAC had a very defined scope of work. Once established, the RBAC expanded its focus to include miscellaneous materials. • Network! Active referrals are the key to success. Make an effort to get business clients the information they need—not necessarily by conducting the research yourself, but rather by finding an expert in another organi- zation who already has the informa- tion. Make onsite visits and establish a solid working relationship with the businesses you assist. Facilitate con- nections to resources and expertise by using staff networking abilities. • Focus on customer service. Try to get businesses the information they need in a timely and effective man- ner. If you know a project has poten- tial, you can do some of the legwork for it, but do not try to provide this ------- JTR GRANTEE SERIES: MINNESOTA level of assistance to every business. First, prioritize businesses by their level of potential or the level of assis- tance they need. Working from that list, provide the highest level of ser- vice appropriate to the specific needs of each business. Continue to increase the level of service you pro- vide to organizations. Try to add new elements and increase your list of resources. Don't get bogged down with internal processes and evaluation. Do not reinvent the wheel. There is a wealth of technical information out there. The key is to learn how to locate that information without hav- ing to do all the research. Customize existing research to serve the needs of each business. Do not dictate to businesses; work on their level as colleagues. Working with businesses in a professional man- ner, instead of dictating to them, helps earn their respect. Visiting the companies demonstrates an added dedication to serving their needs and makes them more comfort- able with the working relationship. ACCOMPLISHMENTS During the 1994-1995 grant period, the RBAC significantly expanded exist- ing market development programs by targeting key industries, expanding cooperative activities among state agen- cies, and implementing a program to provide assistance to startup businesses in the recycling industry. By focusing efforts on wood fiber, plastics, and composites industries, the RBAC suc- cessfully expanded existing efforts. The center assisted more than 250 business- es, which led to the creation of more than 800 jobs in Minnesota. The RBAC found the team approach most effective. Pooling the backgrounds of staff members and partner agencies provided the highest possible level of assistance to local businesses. The center focused on providing valuable customer service, and tried to integrate both waste prevention and recycling. RBAC staff used innovative ideas, main- tained a broad and interesting scope of work, and conducted projects with the help of a range of partner agencies and organizations. Staff members were pleased with the number of businesses provided with long- and short-term assistance. PROGRAM FUTURE In 1996, OEA was awarded another JTR grant of $250,000. This money will be used to create a targeted market development program for glass, paint, and polyethylene terephthalate plastic. Activities will be coordinated within OEAs Business Environmental Resource Center (BERC) using methods and expertise developed through OEAs Market Development Program and RBAC. Short-term Assistance and Referrals: In-Depth Assistance: Business Management: Technical Assistance: Financial Assistance: Product and By-Product Marketing Assistance: Full-Time Equivalents Created2: Estimated Economic Activity Indicators2: Total Wages and Salary Disbursements: Increase in value added (contribution to gross state product): Increase in Gross Economic Activity (Total Sales): 243 businesses assisted 32 businesses assisted1 9 businesses assisted 25 businesses assisted 12 businesses assisted 9 businesses assisted SOSjobs $22,956,000 $48,27 O,5OO $95,O61,5OO 1. Some organizations received more than one type of assistance. 2. Forecasted state-wide economic impacts for proposed new manufacturing facilities using recycled materials using Regional Economic Modeling, Inc. (REMI) model. ------- JOBS THROUGH RECYCLING "We never would have been able to afford the services provid- ed by RBA C staff if they had been private consultants. With- out their assistance, we would have had to close our doors." LEONARD "LINDY" STOLTZ President and CEO, Nature's Fire Nature's Fire, a manufacturer of organic fire starting products made from recycled materials, received RBAC assis- tance just in time to prevent their operation from shutting down. With increasing sales opportunities, the company needed to expand their facility and increase production. The company did not, however, have the resources or technical knowledge to accomplish this expansion. The RBAC assisted Nature's Fire in the following ways: • Researching alternative packaging options when Nature's Fire's only vendor of 100 percent recyclable and biodegradable packaging trays discontinued their product. • Researching specifications and emissions guidelines to reduce testing costs. The RBAC discovered that slight modifications to the product labels could eliminate between $108,500 and $186,000 in emission testing fees. • Assisting Nature's Fire in securing needed funding for a dehydrator to dry the volumes of wood residue necessary to make product and keep up with their incoming orders. The purchase of this piece of equipment allowed Nature's Fire to expand and meet the demands of its customers, while eliminating waste at the same time. The machine has the capacity to recycle 100,000 pounds per week of wood and other materials that would otherwise be landfilled. With RBAC assistance, Nature's Fire obtained funding during the grant period from OEA. A total of $82,500 was awarded by OEA over the course of the grant period for various testing and purchasing costs. Not only did RBAC assist Nature's Fire in securing funding, they also indirectly helped secure markets through their effective referral service. Lindy Stoltz, President and Chief Executive Officer of Nature's Fire, began communications with an RBAC contact at the World Trade Center, which eventually enabled him to begin exporting his product to markets in Chile, Peru, Australia, and other countries. Currently, foreign exports make up 57 percent of Nature's Fire's sales. Publications • Factsheet: Recycling/Reuse Business Assistance Center. Explains the goals and objectives of the Minnesota RBAC and provides contact information. • A Business Guide to Recycling and Market Development. Lists and describes sources of financial and technical assistance available to Minnesota businesses working with recyclable materials. • 1996 RBAC Program Guide. This "quick reference" guide contains all Minnesota RBAC program information through 1996, including information, strategies, how assistance is pro- vided, projects and tracking, measures for results, economic modeling, and articles and pub- lications on the RBAC. • Economic/Environmental Profile of Minnesota's Value-Added Recycling Manufacturing Industry. Illustrates the economic and environmental value of Minnesota's recycling and reuse value-added processing and manufacturing businesses. • Project Summaries. Outlines all projects undertaken by the RBAC during the funding period. ------- |