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Manufacturing Industry
Stepping things up: with price and demand for secondary commodities increasing, MRF operators are seeking ways to improve their operations
Recycling Today, June, 2005 by Dan Sandoval
A strategy that may be effective is looking at the development of intermediate processing facilities, where different recyclables can be sorted and then shipped for further processing, Gershman adds.
THE ULTIMATE COMPETITION. Recyclers often say that they are competing for tons, business or contracts with other recycling companies in the area. However, one competitor that many forget about is the landfill. While in parts of the Northeast landfill tip fees are significant, in many parts of the country tipping fees are still fairly low. In essence, a MRF must design and operate a recycling program that can beat the cost of landfilling the recyclables.
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This is even more important when many municipal budgets are only now recovering from the drastic shortfalls they saw in the early 2000s.
Sargent says that in parts of Ohio where Rumpke operates, landfill tipping fees are as low as $10 to $15 per ton.
Barry also says that tipping fees in Iowa are low enough that MRF operators have to adjust, taking steps to ensure that their services make economic sense. At the same time, Mid America is seeking to increase its coverage area in the state. This, Barry feels, provides the entry for more of a single-stream approach.
Egosi says there are many different schools of thought when it comes to MRF construction and operation. Ira community opts to own and operate a MRF, it is looking to bring in more recyclables from surrounding communities. This practice will allow the publicly owned MRF to reduce its per-ton processing costs.
However, privately owned companies may come in with the expectation of obtaining residentially collected material as well as commercial material.
While there are a host of variables involved in designing and operating a MRF, a key consideration is looking at the customers that the facility will service, not only today, but in the future, as well. Maximizing a MRF's potential is the best way to ensure that the plant can remain successful for the long haul.
RELATED ARTICLE: Avoiding growing pains.
When planning the material recovery facility (MRF) that would serve communities in Des Moines, Iowa, Mick Barry, vice president of Mid America Recycling, headquartered in Des Moines, says the company determined that the city would see some significant population growth, with the MRF serving a growing white-collar employment area. This, he says, gave the company the impression that collection levels would continue to grow with the MRF's capacity.
Mid America focuses mainly in the Midwest, with operations in slower population growth states, such as Iowa, Minnesota, Michigan, Oklahoma, Nebraska, South Dakota and Missouri. But one advantage the company has is its ability to play a more active role in helping local municipal governments to develop recycling programs, increasing its involvement in the business dynamics of the area.
Barry says the benefit of becoming a significant operator in the Midwest has allowed the company to work much more closely with the various government agencies. "We sit on the long-term planning committee. We are heavily involved in the community," he says.
