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Market development:shifting the paradigm |
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Market development:shifting the paradigm |
Local staff with responsibility for marketing of recyclables should become familiar with the principles of local recycling market development as an economic tool for creating new jobs. Both small rural communities and larger urban areas can benefit by working with existing and new businesses to keep recovered materials within the local community as a feedstock for new products.
To achieve the greatest effectiveness in creating new jobs and recovering materials, both waste reduction and economic development staff should be involved with and trained in the local recycling market development process. Knowledge of the specific needs of businesses that collect and manufacture with recovered materials is important, but not more important than an understanding of what is required to establish and operate any successful business.
Program staff must also assist the wider economic development and finance community in understanding that material recovery businesses are much like any other business, but with a different source of raw materials.
Local government can assist these businesses by providing technical assistance, business planning and development assistance, permitting assistance, and by providing grants and loans, or by helping these businesses to obtain grant and loan financing.
Local government can work with other communities in the region to help create viable business opportunities by sharing knowledge, equipment, staffing, funding, and sources of raw materials.
Local government can help recovery and manufacturing businesses obtain benefits and assistance from state and federal agencies and funding sources. Some states provide programs, such as California's "Recycling Market Development Zone" program, which provide a variety of benefits to local communities and recycling-based businesses.
There are three stages to recycling—collecting recyclable materials, manufacturing recycled-content products, and selling those products. Market development means fostering businesses that manufacture and market recycled-content products and strengthening consumer demand for those products. Market development can include, for example, expanding the processing and remanufacturing capacity of recycling businesses to handle the increasing volume of collected recyclables.
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Steps for implementing a local recycling market development programTask One: Appoint a contact person for material recovery and manufacturing businesses.This can be someone from the local economic development staff, someone from the waste reduction staff, or an outside specialist or contractor. However, this liaison will be most effective if he or she is well versed in both recycling and business basics. If the appointed contact is more familiar with either the recycling or the business aspects of the job, training is available to help provide knowledge in a wide variety of needed skills. Task Two: Contact neighboring communities.Determine whether surrounding jurisdictions have existing programs supporting the creation of material recovery and manufacturing jobs. Assess the potential for working together to expand and enhance existing businesses. See if there are complementary areas where your community can help fill your neighbor’s needs, in return for their ability to help meet your community’s needs. Begin with a small project, and build on your experience. Evaluate the appropriate level of cooperation that will serve your mutual needs. Task Three: Access state resources.Determine the assistance that may be available to your community and its businesses at the state or federal level. See “Resources” for some helpful website links. California Market Development Resources:Recycling Market Development Zone Program - CIWMB funds up to 75 percent of the startup costs, up to $2 million per business, of qualified recycling-based businesses that are located in specified areas of California. R-Team - The port of entry into the business of recycling. The R-Team helps recycling based businesses find markets, materials, and startup funding. Examples of model recycling market development programs:EPA and other governmental entities sponsor market development programs for business and industry. For additional information, click on any of the links below:
Environmental Management Investment GroupState of New YorkOperated by the Empire State Development Corp., a public agency, the Environmental Management Investment Group (EMIG) provides grants for research, development, and demonstration of reuse, remanufacturing, recycling, and other pollution and waste prevention projects. A nationally recognized grant program, EMIG has been responsible for developing new recycling technologies and new markets for products made from reusable materials in New York State. Between 1998 and 1999, EMIG financed 120 projects costing a total of $29.7 million and resulting in the prevention of more than 1 million tons of waste. Since 1992, for example, one grant recipient has been collecting unused medical supplies and used medical equipment for redistribution to underserved medical clinics in the US and abroad. In 2000, this project diverted an average of 4000 pounds a week from disposal, and saved participating facilities $240,000 in disposal costs. Rural RecyclingThe first topic is The State of Rural Recycling by Kay Stevens, Executive Director of the Nebraska State Recycling Association. An introduction is provided below, for the full text please visit: www.epa.gov/jtr/topics/stevens.htm Introduction: Nebraska is a typical "rural" state, by definition, with a population of over 1,600,000 living in 515 communities in 92 counties. Of this number, nearly 500 communities have populations of 5,000 or less. As a rural state, Nebraska has an economy that is linked strongly to agri-business throughout most counties with nearly one-third of the total population residing in three urban counties in eastern Nebraska. The struggle to create a recycling infrastructure in this type of rural context is one that rural residents anywhere can relate to, regardless of location. As is the case in all rural areas, sparse population distribution and related volume of materials, distance to markets, and competition with the traditional "efficiency" of single-conduit disposal combine to make successful recycling in a rural context something of a miracle.” Rural Recycling Strategies: Cooperative Marketing Tool KitA document designed to assist in the development of efficient and sustainable rural recycling programs at the local and regional level. The document includes a variety of resources and discusses organizational structures, contracts, specifications, and different program options.
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