Close

5. Utilize your plastic scrap for something INSPIRATIONAL with “Social Partnerships”

teamwork-img1

Why not utilize your plastic scrap for something incredibly INSPIRATIONAL with “Social Partnerships”.  There’s tremendous value to be gained by doing good.

Most people are aware of the economic value of plastic scrap. Many kinds of plastic scrap materials get recycled, turned into all kinds of new plastic products. GearedforGreen helps clients recycle millions of pounds of plastic scrap every year. Recyclability is one of the wonderful aspects of plastics. For those “in the know”, that’s what’s called “thermoplastics”. Thermoplastics unlike thermosets can be re-melted over and over again, formed into all kinds of new things.

Old “pet” polyester soda bottles get recycled into new carpet & apparel products. Used HDPE detergent bottles get recycled into new decking products & park benches. Used polyethylene plastic grocery bags get recycled into brand new trash bags. We help recycle more than 150 different types of plastic materials.

The good news for industry generating plastic waste is, many plastic scrap materials maintain retainable “economic” value. In our circular eco supply chains, we connect plastic waste generators with “compounders” in our network that convert plastic scrap into sustainable raw material “resins” made to molders specifications, then connect those resins to manufacturers in our network that want to make their products more sustainably using recycled resins in replace of buying more costly virgin resin made from petrochemicals.

Actually, getting involved in a circular eco supply chain can create many economic advantages down the line. For businesses generating plastic scrap, circular supply chains enable you to offset some of your costs and gain some level of economic value. CFO’s seem happy with these financial off sets but... ask yourself a question. Is that the best “value” you can achieve for your business by selling plastic scrap materials as a commodity? For some yes, others no.

Here’s a thought we want you to consider. Ask yourself these 2 questions … “Why are you in business in the first place? And what is the actual impact (gain) your business achieves by selling recycled plastic scrap materials?” 

Here’s a value analysis for manufacturers to consider. You generate plastic waste in your operations, and you sell off 40,000 pounds of plastic scrap per month as a commodity. You originally paid $.44 per pound for your widespec plastic resin, you generated 5% scrap rate in production, and you sold your scrap for $.21 per pound, so in effect you have a net raw material loss of around $.23 per pound times 2,000 pounds = around $460.00 loss recovery. I recognize there’s many ways to analyze this revenue loss recovery, and I welcome any market economic feedback on this analysis, but for the sake of this topic, let’s assume for argument sake your scrap sale value helped recover a relatively small portion of the actual loss associated with your production scrap.

Back to the original question.  “Why are you in business in the first place? And what is the actual impact (gain) your business incurred selling recycled plastic materials?” 

Most business owners we talk with agree, businesses are in business to make and sell product, generate profit for shareholders, create fulfilling environments for employees, and build valuable lasting brands.  If you think about value that way, the actual economic benefit you receive by selling off your scrap plastic is small in relation to your company’s economic, employee, and brand goals.

When treating plastic scrap only as a commodity, the revenue generation or loss reduction associated with it isn’t remotely enough to move the needle up or down to make any significant impact on your business. But wait …”A💡moment “. Value can be achieved in many different ways. Plastic scrap may have far greater value beyond just “price per pound” economic value gained selling it as a commodity.

Your plastic scrap has environmental value! Sustainability value! Saving our earth value! Doing good for mankind value! Bonding with your customer value! In other words … it has “Social Purpose” value. Plastic scrap and recycling, when leveraged properly, can indeed move your needle! 

Plastics can be used to make many different products used for all kinds of wonderful applications. Think about all the great socially positive humanitarian impacting products that can be made (if you partnered together) in the right eco supply chain that uses your plastic scrap, turned into products like – plastic water filtration systems that generate clean drinking water in third world countries, mosquito nets and blankets that protect people from disease, and many other plastic products that save and impact lives around the world.

For plastics businesses and brands looking to do good, there are great opportunities to connect “Social Partnerships” using plastic scrap to make socially purposeful products connected with causes that impact and unite people around the world. Social Partnerships can become incredibly inspirational to your stakeholders, employees, and customers and serve as a powerful connection that impacts your business & brand, adding value that’s far more valuable than $460.00 loss recovery. 

By Daniel Schrager, President at GearedforGreen 888-398 (GEAR) 4327, info@gearedforgreen.com, www.gearedforgreen.com  

About Author

Connect with Me: