Across the plastic industry, there have been many supply chain disruptions that have led to plastic supply shortfalls and historically high prices. While the most obvious disruptor has been the COVID-19 pandemic, extreme weather — such as winter storms that hit Texas and the Gulf Coast — has also contributed to the shortfall. At the same time, the cost of moving supplies and vehicles across North America has risen.
Most importantly, the increasing resin pricing and raw material cost are key contributors to the reduction in plastic production. All of these factors have set the stage for increased plastic packaging demand and decreased supply.
Because most of the world was sent home during the pandemic, consumers resorted to online shopping, which helped drive the demand for plastic packaging materials. Although the industry was struggling at the onset of the pandemic, the confluence of additional factors has further complicated the situation.
Fortunately, savvy business owners and warehouse managers are leveraging commercial recycling services to keep up with and even beat inflation. Continue reading to learn more about how businesses can use commercial recycling to counteract plastic price increases.
Starting a Commercial Recycling Can Help Offset Plastic Price Increases
While the rising price of raw materials can be alarming, there is a silver lining: you can get more money for your plastic recyclable scraps. As prices for raw plastic materials increase, it makes PCR resins more valuable and attractive. This means you'll get higher values for your recycled plastics. Some of the top factors that can determine how much you'll earn for your plastic scraps are listed below.
The Quality of Your Plastic
Simply put, the clearer your plastic scraps, the easier it will be to sort, recycle, and evolve into a new product. On the other hand, darker plastics are more difficult to recycle. While most recyclable plastics can have increasing value during times of increased plastic demand and decreased raw material availability, clearer plastics may net you an even higher return.
The Global Economy Shapes Recyclable Prices
As we previously mentioned, the global economy plays a major role in the price of recyclable plastics. And because the supply-demand for plastic has increased while raw material availability has decreased, there is also an increased need for recycled plastic resins. As such, we'll pay you more for your plastic recyclable materials.
Natural Gas and Oil Prices Impact Recyclable Plastic Prices
One of the top raw materials used in plastics is oil. And as the price of natural gas and oil used in virgin resins rise, the cost to manufacture will increase as well. However, when the price of natural resources increases, it also makes commercial recycling more lucrative and attractive for facilities.
How Does Commercial Recycling Work?
At AAA Polymer, we make commercial plastic recycling easy! We'll create a customized commercial recycling program for your business and pay you cash for your plastic trash. The process is simple and starts with a free initial site survey. During the on-site survey, one of our plastic recycling experts will:
Inspect your material to determine the type of plastic waste.
Project the volume of plastic waste materials being produced.
Determine if your site needs a bailing machine or compactor.
Create a customized pickup schedule based on the needs of the business.
Pay you cash for your plastic recyclable scrap
Best of all, we will pick up eligible plastic recyclables at no cost to you!
What Types of Plastic Materials Are Eligible for Commercial Recycling?
At AAA Polymer, we have been helping businesses turn their plastic trash into cash since 1974, and we primarily focus on recycling these types of materials:
#2 High-Density Polyethylene (HDPE)
#4 Low-Density Polyethylene (LDPE)
#5 Polypropylene (PP)
While we work with several warehouses and production facilities, the most common types of collection customers we have are:
Facility managers and warehouses produce what's called post-commercial plastic scrap.
Businesses and manufacturers who generate post-industrial plastic scrap.
Popular examples of the types of plastic materials we collect include:
Bakery rack covers
Non-used plastic packaging for finished goods
One of the top drivers of the plastic recycling market is the specific manufacturer's needs and demands.
Earn Cash for Plastic Scraps & Generate Real Business Savings
In addition to earning cash for your plastic scrap, a commercial recycling program can also generate significant savings that can further offset the rise in the price of plastics.
Reduce Disposal Costs
On one hand, it can slash the cost of disposal. By removing this plastic from your waste stream, you will almost immediately reduce the cost of hauling trash to the disposal site. This reduces the number of times your trash needs to be picked up, which lowers total costs associated with collection, baling, and transportation.
Lower Tipping Fees
In addition, a commercial recycling program can lead to savings on your disposal tipping fee. The tipping fee is typically charged when your trash is received by the processing fee. The tipping fee is engineered to offset the managing, opening, and closing of the landfill site. Tipping fees are usually based on a “per ton” rate that can span anywhere from $20 up to $100 a ton. For instance:
New Jersey tipping fees can be as low as $44.31 up to $96.00.
New York tipping fees can be as low as $49.50 up to $102.00.
Massachusetts tipping fees can be as low as $72.00 up to $100.
Contact AAA Polymer to Start a Commercial Plastic Recycling Program to Manage Plastic Price Increases
Most experts project the plastic price increase to hold firm for much of the foreseeable future as materials pricing and feedstock costs continues to climb. As such, business owners need to take the proper steps to offset these rising costs. At AAA Polymer, we offer many different innovative solutions to help offset plastic price increases, including:
Commercial plastic recycling programs
Contact AAA Polymer today.