ALL recyclable materials are commodities; as a result, their value fluctuates. For this reason, a recycling program should be built around cost avoidance rather than potential revenues, according to Australian Warehouse Solutions .
Avoiding disposal fees should be one of the primary goals of a recycling program. The less scrap you dispose of results in fewer industrial bin pickups, which in turn, leads to savings in disposal fees.
Of course, there are several other reasons for recycling, including environmental benefits, but businesses must be profitable in order to keep their doors open and a successful recycling program is a definite way to add to a company's bottom line.
One of the major concerns for industrial-type businesses is the method and cost of disposing of steel and plastic banding that is used to bind loads on pallets. Its disposal can be a major safety issue, an environmental issue and a drain on company resources.
The amount of loose banding that customarily fills up a normal industrial bin can normally fit into two 200 litre drums after it's chopped. Every time you pay to have an industrial bin of scrap emptied, you erode your company's profits. By reducing the number of times a bin is emptied, companies show an annual increased profits on their bottom line.
How does your company currently handle its scrap? Do you use industrial bins or containers? How often are the bins and containers emptied? How full are the containers when they are picked up? How much does your company spend on scrap disposal?
Know your scrap dealers requirements. Should your scrap be separated, or can it be mixed? Does the scrap dealer have different rates that might help you develop or enhance your program? Understanding what is required within your city or county limits will help you select vendors to haul and process your scrap.
Sorting recyclable materials is labour intensive. If it is sorted, or 'prepared', scrap dealers may pay more for your ready-to-process scrap. Furthermore, if you eliminate the scrap at the point at which it is created, you will eliminate the necessity to handle it more than once.
A simple cost/benefit analysis is usually performed to give a preliminary idea of a recycling program's profitability and to estimate the payback period, if not immediate. The results of this assessment are key to getting approval to start any project, especially when up front expenditures are required. Remember, cash for recyclable materials is a perk of your program.