16 October 2017

Something for nothing

There's nothing comfortable about doing business in 2017. The truth is, it's been that way now for almost a decade - and there's no warm, fuzzy glow on the horizon.

But that doesn't have to be a bad thing. Because with warm and fuzzy comes complacency. And we all know what complacency does for business.

In the print industry, just as in other sectors, it's those that seek out new ways of doing things who blast through the barriers while those that insist on maintaining the traditional often struggle.
When it comes to recycling and waste management, the reasons for doing things differently have never been more apparent. And this will continue into 2018 and beyond as the markets for recovered materials mature and realign.

At Prismm we're all about challenging the status quo of recycling in the print sector. But what does that mean in real, operational terms? And what can you take from our approach to improve your own recycling and waste management practices?

For starters, we're not a traditional waste management company in the way that many would recognise. Over the last 30 years, we've seen the rise and rise of the super waste management business. Without doubt, these global, corporate behemoths provide an impressive list of services and are happy to take the strain from you - for the most part, as long as you fit in with their way of doing things. Of course, there are downsides: they are beholden to their shareholders, are unlikely to be nimble when it comes to change and strategy, and unless you are a corporate giant yourself, you're unlikely to be their top priority.

Increasingly, businesses are turning to a more collaborative approach; something that is more tailored to their individual situation, materials and objectives. Our approach isn't to provide all of these services from under one roof, but to bring together and manage a group of specialist organisations that provide expertise in specific areas. We build this into a tailored service, managing the partners on your behalf, focusing on flexibility, innovation and continuous improvements.

That doesn't mean to say that we don't work with the large waste management companies - we do. But we do so when it makes sense, just as we work with the smaller operators when they have the most appropriate solution.

This approach means that you are never tied to a single solution, just because ‘it's the way we do it'. It allows us to work together, question, evolve and improve. Regardless of who is responsible for your waste management, this is what you should be looking for in the current market.

It has also allowed us to innovate on behalf of the print sector, developing solutions difficult recycling materials such as labels and silicone backing papers. In fact, we're currently working on a foil recycling programme.

It's really important that your waste management supplier focuses on innovation and improvement. Back in the day, getting businesses to recycle at all was a challenge. Knowing that you had diverted material from landfill was frequently deemed enough. That is no longer the case.

Businesses now know enough about resource scarcity and environmental impacts to recognise that the end goal is material reuse and reprocessing. Innovation is critical to achieving this. Therefore, you should be asking your waste management company the following questions:

1.Who is buying my material?
2.What is it being used for?
3.Is that the best that can be achieved - if not, how can you help me to improve its potential use?

Only when you know the answers to those questions can you be assured that your partner is progressive rather than complacent.

Current material values
With the global recycling landscape still uncertain, it'll come as no surprise to find that material values have, for the most part, declined.

Cardboard prices have dropped by around £40 per tonne.

Prices for Mixed paper into China are no longer available. However, this has been in part offset by an increase in European capacity and demand which has limited the price drop to £50 per tonne.

Scan and Cardboard coated with metalised polyester and laminate is staying strong with only a small reduction in rebates of £15 per tonne.

The outlook for plastics remains uncertain. There is high demand for good quality scrap material but prices seem to have softened.

Lower quality plastics are at risk of going into the RDF and SRF markets. If this happens, there could be an increase in general waste costs as supply starts to outweigh demand.

On a more positive note, though, the Euro rate is helping counter the effects of increased gate fees into European waste to energy plants.

What does this mean for you?
With the global market for recyclable materials hardening, it is likely that waste management companies and recyclers will be seeking out better quality material to ensure that it can find a buyer. For better quality read better segregation and lower contamination.

It's now more important than ever that you seek support and advice from your recycling partner. It's in everyone's interest to ensure your in-house practices deliver high quality material to maximise value and minimise costs.

It's normal when you bring a recycling or waste management partner on board to start with an audit of processes, practices, behaviours and opportunities. But this should not be a one off. Speaking from a positive viewpoint, recycling should become a series of continuous improvement upgrades - constantly evolving to waste less, divert more and deliver better quality. Regular audits carried out in partnership with your supplier can deliver this.

By contrast, if you put in recycling processes in place and then walk away, it is likely that interest and commitment will wane, behaviours will revert and quantity, quality and revenues will reduce.
So - put in a call to your supplier and ask for their support. You've got nothing to lose - but failure to do so could leave you out of pocket.

What next?
The recycling sector goes through these peaks and troughs. For those of us in the sector, we're used to it. However, this is different. We are still unsure whether China is going to maintain this position, but regardless of that the market is trying to realign. Only time will tell - watch this space.

Written by Mike Jackson of Prismm Environmental www.prismm.co.uk