Market Assessment & Program

Transcription

1 Market Assessment & Program Planning Part t2: Saving Money and Maximizing Revenue November 10, 2011

2 Agenda Wl Welcome & Introduction Market Assessment & Program Planning Part 2: Saving Money & Maximizing Revenue Re cap of Part 1 Survey Results Factors Driving Program Planning & Accessing Market Information Case Studies: Johns Hopkins University Richard Abraham Q&A JohnsonCountyCommunityCollege Community College Michael Rea

3 Re cap: Market Assessment & Program Planning Part 1 Short & Long term Trends October 13, 2011 Webinar

4 Macro Analysis Even with the current dip in US consumption, global demand is likely to grow Asian economies continue to grow, keeping market prices up More people chasing limited resources = more demand for recycled materials Increasing cost of extracting resources and geopolitical/regulatory/ l/ l t / environmental constraints t limit it availability of raw materials. Domestic manufacturers need more supply as they look to save energy and meet recycled content requirements. But, quality of materials matters! Increasing oil and natural gas prices will increase the value of recycled plastic and glass.

5 Micro Analysis The markets are there the question is whether you can design/improve sustainable programs at your institution. Collection and handling are one of the biggest cost factors in recycling and somethingyou can control.

6 Post Webinar Survey Results

7 Survey Results: Market Per ton Costs or Revenues Mixed Paper 58% of respondents generate revenue w/ 24.2% getting paid more than $100 per ton; 21% do not recover mixed paper. Corrugated Cardboard 64% of respondents generate revenue; 15% do not recover corrugated cardboard

8 Survey Results: Market Per ton Costs or Revenues Cans & Bottles 33% generate revenue; 18% do not recover cans & bottles. Single Stream Recycling 64% of respondents don t do single stream recycling Trash 18% paid over $100 per ton; 27% paid $50 $99; $99 39% paid $1 $49.

9 Survey Results: Top Three Barriers to Recycling Plastic, Glass, Aluminum, Mixed Paper & Corrugated #1 Lack of awareness/interest among students & Staff #2 Custodial/building staff prefer to remove with the daily trash pick up #3 Lack of floor space for recycling bin

10 Survey Results: Your Top Sources for Market Information Vendor Official Board Market/Yellow Sheet Northeast Resource Recovery Association Recycling Today Magazine Local scrap buyer markets

11 Now What? Factors Driving Your Program Planning and Accessing Market Information

12 Understand Material Handling Costs and Opportunities Walk through audit of facility: Materials handled by location, including waste Volume by commodity type, and by location Numberofinternal containers needed Location and space available for central Consolidation Points Handling costs from containers to consolidation point(s) Analysis of Results: Volume and number of commodities to handle Commingle some commodities to reduce internal handling and collection costs from campus Consolidate through baling or compacting Contamination what types, costs to minimize orremove? remove? Total costs from change in handling practices

13 Understand Total Costs and Potential Revenues Total costs include internal handling costs and contracted services saving money internally is part of system costs even though it may be outside of program budget Internal custodial arrangements and transport costs within campus System cost analysis may determine those areas where it makes sense to keep materials separate for markets and others where a single stream reduces system costs Can you renegotiate contacted services to manage waste as a resource? Reduce waste dumpsters and pull frequency and put money into recycling contract Can you manage as one contract and create economic incentives to increase recycling? Should you manage your vendors/contracts separately so you can better control costs and revenues?

14 Negotiating Best Material Prices FOB shipping point How many locations? What is the cost of internal handling at campus? Does baling or compacting make economic sense? Best price FOB campus: Shared risk ik Tie to market ktindex Minimize risk Guaranteed floor, but with less potential for share ofhighrevenues Play the market Change brokers, vendors, and end users based on bestdeal

15 Resources Official Board Markets Yellow Sheet (packaging online.com) Tracks mill and export pricing for different paper grades for subscribers. About $200/yr. London Metal Exchange (lme.com) Limited data free of charge after registration. Recycler s World/Recycle Net (recycle.net/exchange/) General pricing for various commodities. Global Recycling Network (grn.com/prices.htm) Spot market pricing, composite pricing and historical data for a range of materials by fee. Kitco (kitcometals.com) Tracks prices for non ferrous metals and includes historical data and trends. Subscription Recycling Periodicals with some pricing information included, or fee based: Resource Recycling Waste & Recycling News (Secondary Materials Recycling By Region) Recycling Today Plastic News Recycling Works newsletter (p2pays.org/newsletters.asp#rworks) asp#rworks) North Carolina MRF s report prices from mills and secondary processors (see last page).

16 Case Studies John Hopkins University (Dual stream) Johnson County Community College (Single stream)

17 Johns Hopkins University Baltimore, MD Richard Abraham

18 Introduction Background Bachelor s Degree from University of Maryland 30 years in private industry Ferrous Scrap, Non Ferrous Scrap, Cardboard, Paper Five years at Johns Hopkins University

19 Guidelines RFP set up Official Board Market containing the Yellow Sheet Prices based on the average price paid by the mills F.O.B. This is not what the individual vendor is actually receiving Journal published weekly Prices only change in the first issue ofthe month USA divided in sections of the country California pricing is different then Maryland Until a few years ago the journal did not publish pricing for overseas markets Other journals American Metal Market, Recycling Today

20 Official Board Markets

21 Official Board Markets Transacted paper stock prices Sept. 2011

22 Homewood Campus Johns Hopkins University Established million square feet 140 acres over 60 buildings Student population on campus 12,000 Satellite Campuses East Baltimore, DC, Montgomery County, Howard County Raises population to 35,000 Does not include Johns Hopkins Hospital System Largest private employer in the State of Maryland

23 Previous Program Slim jims were in most academic buildings Trash, recycling & commingle Previous vendor: Rented cardboard baler Waste Management hauled commingle to MRF charged hauling and processing fee. Sorted office paper collected in Gaylord boxes picked up by vendor Sorted office paper collected in Gaylord boxes, picked up by vendor Approached vendor about rebating Discussed official board market Sent out RFP to various vendors Willing to rebate Numerous formula s and charges based on Yellow Sheet Hauling fees, percentages, fuel surcharges

24 Decision making criteria Winning Bid Formula Profit vs. Environment usually not complimentary Costs, labor, price of containers, price ofcompactors Purchase or lease to buy Vendor s schedule published price fixed% published price fixed $ amount $ per ton $ per ton $50.00 per ton $25.00 at 25% published price $50.00 Net $75.00 Net

25 Initial Changes Received prices based on yellow sheet, all were competitive. 1. One vendor charged for hauling per container. 2. One vendor included hauling but offered a lower price. 3. Allprices on yellow sheet percentage of the listed price on first issue list price minus a flat cost. chose second option, everyone makes profit or everyone shares in the loss Vendor listed a floor price Never charge for a pickup even in bad markets. Check references Make sure even in bad markets that vendor honors their contract Pickups in bad bdmarkets kt

26 Where we are now We have 60 down stroke baler for cardboard that we purchased reconditioned. We have a 34 cubic yard self contained compactor for sorted office paper that we purchased reconditioned. We have a 30 yard converted open top container for single stream: we call the product commingle. Everything that can be recycled including: chip board, Styrofoam, metal, paper, and some items that can t be recycled: ldpaper plates, cups, bags, #7 plastic.

27 Choices? Dual stream vs single stream? Believe that single stream is only a form of collection not recycling Points Keep as much recycling as possible inside the United States Domestic Economics The more you do the more money you potentially make Separation of newspaper from sorted office paper

28 Possible single stream Simplicity Space Future Opportunities Removing desk side containers Emptying deskrecycling and desktrash onceper week Classrooms, lecture halls, remove containers Btt Better signage

29 Questions?

30 Johnson County Community College Overland Park, KS Michael Rea

31 JCCC s Recycling Strategic Plan Champion environmental sustainability in the curriculum and in the college infrastructure, transforming the physical campus into a living, learning lb laboratory. I started September 2011 as Recycling and Waste Minimization. Gather and analyze data. Created presentation projecting zero waste goals to Presidents Council. 20, students, t no dorms, 19 onsite buildings, 4 offsite.

32 Past, Present and Future Waste 1,200 1,000 $17,000 savings and revenue for % Diversion rate Tons % Diversion Compost Recycling Landfill

33 Future Waste Costs $ $20, $40, $580, year savings $60, $80, $100, Zero Waste Plan Costs $361,000 $120, $140, $160, No Zero Waste Plan Costs $941,000 Key assumptions: Landfill rates increase 10% per year Recycling rates increase 5% per year.

34 Old Recycling System Multi stream: White Paper, Colored Paper, Coated Paper, Bottles and Cans, Cardboard. What is White paper? Limited staffing in housekeeping. Only one final location for all recyclables on campus Recycling contract never reviewed. Ugly, difficult to use recycling bins. Willingrecyclers on campus.

35 Creating the Change Gathered data for trash and recycling. 97% fiber, 36% one area. Sent out a recycling survey. Performed quick waste audit. 47% was recyclable throughsingle stream process. Mapped all recycling and trash containers on campus. 110 trash containers, 3 recycling containers outside. 0% 23% Recyclables % 4% 4% Mixed Paper News 31% Office Waste Coated White Ledger Cardboard 36% Plastic/aluminum l i

36 The New System August 2011

37 The New System Recycle next to trash, always. still fighting 2 compactors for recycling no cost 6 collection points no cost

38 Cost of new bins $12k The New System Repurposed ld lids Repurposed old containers to outdoors Document services recycling remains the same they recycle the most paper.

39 Results People are happier. Presentation at All Staff meeting New system has engaged other entities BNSF. Hopefully helps with Central Office Recycling and Trash Feb April 40 tons $2000 Aug Oct 41tons $3500

40 Lessons Learned Can t track different materials now without audit Extra materials = some confusion. People love the fact that the money earned goes to student scholarships Need more pickups with less containers. Change in housekeeping procedures. You re never finished.

41 Questions?

42 Contact Information Richard Abraham Recycling Manager Johns Hopkins University P: E: Michael Rea Rob Gogan Project Manager Recycling and Waste Johnson Community Manager College Facilities Maintenance P: , x3550 Operations E: Harvard University i P: E: rob_gogan@harvard.edu This presentation, the audio recording and related materials will be posted on CURC s Webinar Archive at curc3r.org.

43 Join us for next month s webinar: Processing Equipment: Crushing, Compacting & Baling, Oh my! Sponsored by: Thursday, December 8 1:00 2:30 p.m. EST