Why China Plastics Ban can lead to greater innovation, investment, and sustainable manufacturing in the USAby gearedforgreen October 23, 2017 ACC cardboard box reuse cardboard boxes Dow eco apparel eco supply chain gearedforgreen packaging plastic raw materials plastic recycling plastic resins Proctor & Gamble recycling social partnerships sustainableshopping
Some see the China plastics ban as a huge problem, others see it more as a long term opportunity. We see the proverbial pet bottle as 1/2 full.
1st came the Green Fence… a warning shot. Now the National Sword. Both cool names btw… kudos to China. The China policies (limiting) imports of plastic scrap materials is having a profound change to the plastics recycling eco system here in the USA and around the world. The question is equally WHY and WHAT NOW?
WHY? – We’ve all heard lots of complaints, confusion, and disagreement to the new China National Sword policy, some related to short notice of these new scrap import restrictions, others related to lack of clarity about what recyclables are banned or allowed and for how long. Truth be told, we all saw it coming or should have because it was kind of … “Wild West”.
Irrespective of the impacts the “Sword” is having on our scrap and recycling markets here in the USA, it seems clear the Chinese government is concerned that (garbage) is being willfully sent to their country disguised as recyclables. An official of the Ministry of Environmental Protection told the press in July that “the problem of foreign garbage is loathed by everyone in China.” And the press reports also indicate that a recent documentary, PLASTIC CHINA, alleging the health and environmental harms of imported plastics for recycling, spurred Chinese officials to take action.
SO WHAT NOW ?- The world is very much a connected marketplace and still represents enormous opportunity to trade recyclables and sustainables on a global basis, but what we trade .. where we trade.. how we trade .. are changing along with population growth and environmental issues. More people = more consumption = more products = more waste.
America for the most part has maintained status quo continuing to make products with poor end of use options and exporting much of our plastic waste around the world thinking cheaper labor is a solution. It isn’t. Today 90% + of all plastic products used in the USA find their way to landfills or worse, oceans, beaches, etc. Obviously we haven’t yet implemented a strong solution.
It’s important (we) see the forest through the trees, and adapt. When we say (we) we mean product and packaging manufacturers, and consumer brands, retailers, and consumers, along with solid waste, recycling, and raw material professionals.
Everyone in the USA supply chain involved in making, selling, using, and recycling plastic products have good reason to be concerned. China imports about 30 percent of the plastic waste collected for recycling in America. When China stops buying plastic scrap from America and across the world, it creates a glut here in the USA and as supply-demand dictates, commodity prices drop, leading to reduced recycling rates, increased landfill disposal, and more companies leaving the industry because they can’t make money.
The China National Sword policy is no doubt a problem today… but the important discussion we need to have is … what effect will it have long term and will it ultimately drive innovation, investment, and sustainable manufacturing here in the USA ?
THE PROBLEM ISN’T JUST A USA PLASTICS RECYCLING PROBLEM… IT’S A USA INDUSTRY SUPPLY CHAIN PROBLEM!
It impacts us all up & down the supply chain, including plastic products and packaging manufacturers that create all the plastic products that are causing all this waste, major brands using plastics to make & package their products, retailers selling all this stuff, and consumers buying all this stuff. It also includes the solid waste management, recycling, and raw material companies that collect and recycle plastic waste after it is all used and that supply sustainable or non sustainable raw material to make plastic products.
We are all part of the circular economy (the eco supply chain) and we are all part of the circular solution! We ourselves have the ability to solve the problem of plastic waste … if we work together!
For those interested in going circular to collaborate to find better ways to make plastic products & packaging more sustainably and to take better responsibility together for these products at end of use, we’d ❤ to talk and find ways to collaborate together.
By Daniel Schrager, President at GearedforGreen 888-398 (GEAR) 4327, firstname.lastname@example.org, www.gearedforgreen.com
WE ALL KNOW DOING GOOD MAKES US FEELS GOOD. WE NEED TO “SHARE OUR SUSTAINABILITY” SO OUR CUSTOMERS FEEL GOOD TOO!
One of our 5 primary missions at GearedforGreen is helping clients that manufacture plastic products to operate more sustainably from inside-out, and show them ways to leverage that sustainability in their market in order to build more sustainable purposeful brands and share the “feel good” with their customers.
Our clients have made tremendous internal sustainable strides… achieving zero plastic waste in their operations, using recycled plastic resins & other sustainable raw materials instead of all prime plastics, participating in “Social Partnerships ” using ocean collected plastic resins in their products and packaging, optimizing, reducing & reusing their packaging, implementing closed Loop Circular Collaborations within our eco supply chain, measuring their carbon footprints, implementing take-back programs to recycle and re-purpose their products after use in the market, and using sustainably made products and corporate logo eco apparel and uniforms in their own everyday operations. Our clients are making a difference! We here it from them all the time, how sustainability has added a common purpose & pride shared between employees and how it’s helped strengthen corporate culture. They feel good doing good!
To make sustainability even more impactful for our clients, moving the needle on top line revenue and brand value, we must find ways to share our sustainability stories with our customers in the market, to connect our internal sustainability efforts with our customers. We must “Share our Sustainability” !
It’s been well documented by the industry leaders such as Unilever, Proctor and Gamble, and many many other manufacturers and brands… that Communicating our sustainability effectively helps build stronger bonds between our businesses & brands, supply chain partners, and our customers, and positively impact sales and revenue.
For those who dare to make a difference and want to SHARE THE ❤ ♻, please contact GearedforGreen.
4. Reusing used cardboard boxes is not only more sustainable than recycling … it can be more profitable too.by gearedforgreen July 13, 2017 ACC cardboard box reuse cardboard boxes Dow eco apparel eco brand marketing eco supply chain gearedforgreen packaging plastic raw materials plastic resins recycling social partnerships sustainability
For years recycling cardboard boxes has been a centerpiece for corporate recycling programs. Cardboard is widely recyclable and for years there has been relatively strong domestic & international markets for corrugated material. Corrugated cardboard scrap also known as OCC (old corrugated cardboard) is generated by many local, regional, national businesses across industries. In 2016 more than 40 million tons of paper related scrap was recycled, much of which was cardboard.
While cardboard box recycling is an excellent approach to handling used boxes, cardboard box reuse, when applicable, offers even better improved (economic, environmental, and productivity) benefits up & down the supply chain.
As a sustainability company involved in circular eco-supply chains, GearedforGreen looks for ways to improve ROI in REDUCE, REUSE, RECYCLE ♻ programs for clients. Cardboard box reuse is a great approach to improved ROI.
We work with many companies generating good quality 1x used cardboard boxes perfectly capable of reuse, and with many businesses concurrently looking to find good quality suppliers of 1x used cardboard boxes as alternative to having to pay up & buy new boxes.
As part of our eco supply chain sustainability program, our GearedforGreen network connects companies and industries matching used cardboard box suppliers and buyers, helping everyone in the supply chain improve economic, environmental, and productivity ROI.
Many companies involved in manufacturing receive parts and components delivered in cardboard boxes they use just 1x. Many other companies including retailers and distributors use huge amounts of cardboard boxes to send products inter-company between facilities and to trading partners. There is a substantial reuse marketplace for all these 1x used cardboard boxes. Managing the connection between the two is no easy task however, so we partnered with industry to maximize box reuse ROI making cardboard box 📦 reuse valuable and mainstream.
In terms of environmental benefit and ROI, reusing cardboard boxes versus recycling reduces carbon footprint 👣 CO2 substantially and requires far less resources including water and energy consumption. Clients participating in GearedforGreen “Pack Share” box reuse programs also get monthly environmental reports including Life Cycle Assessment documentation showing carbon savings, which are helpful to sustainability score cards. For those businesses looking to reduce their carbon footprint, cardboard box reuse is a great option.
In terms of man hour productivity benefits and ROI, reusing cardboard boxes versus recycling reduces man hours by $30.00 per ton on average associated with reduced labor and handling not having to bale cardboard boxes, and reduced movement from 3 touch points down to 1 touch point, not having to triple handle boxes from generation point to baler to trailer.
In terms of economic benefits and ROI, reusing cardboard boxes versus recycling increases revenue for suppliers in our network 40%-60% on average over the last 5 years, reduces customer cost of boxes in our network by 25%-30% on average over the last 5 years, and provides a far more consistent dependable market as a result of getting fixed annual prices for box reuse instead of fluctuating OBM prices for recycling. Box reuse programs also reduce transportation cost, reduce labor cost, and reduce equipment cost associated with baling.
The infrastructure and client base to support large expansion
in the cardboard box reuse market is significant.
To serve the growing box reuse market, GearedforGreen eco-supply chain network focuses on four (4) areas; warehousing collection sortation, logistics transportation service, environmental CSR compliance documentation, and circular supply chain partner expansion.
- Today we host 30+ regional sorting collection facilities throughout the United States providing local warehouse collection / sortation / quality control resources for suppliers and customers in our “Pack Share” box reuse network.
- We provide full transportation logistics services including drop trailer programs at more than 250 facilities across America.
- We provide monthly CSR environmental reports documenting carbon footprint saving.
- To support the growing demand for reliable box reuse nationwide, GearedforGreen eco supply chain partnerships include the largest network of collection, sortation, quality control providers, and end user customers making us the largest network for 1x used cardboard boxes in America.
It is widely known that sustainability and circular supply chain initiatives can reduce cost, add efficiency, increase innovation, and strengthen and improve supply chain partnerships. Leading businesses worldwide are incorporating circular sustainable supply chains into their operations quickly.
Less known yet equally important, sustainability can significantly improve customer-consumer relationships leading to improved brand value and top line revenue. By effectively communicating your sustainability initiatives, businesses can leverage their sustainability in the market to gain significant advantages. We urge all our clients to engage in consumer facing eco brand initiatives that connect with consumers.
To learn more about our GearedforGreen eco-supply chain sustainability services and how our “Pack Share” Cardboard Box Reuse program increases your economic, environmental, and productivity ROI, please contact us at 888-398-GEAR (4327), email@example.com, or visit us at www.gearedforgreen.com.
If your sustainability strategy isn’t making profound improvement to your business, helping grow top line revenue, build a more valuable purposeful brand, and operate your business with less waste & greater efficiency … you may want to consider a divorce.
We aren’t obligated to stay married to supply chain partners if they aren’t continually helping us profoundly grow a more successful sustainable business. Yet, by partnering stronger and collaborating on circular sustainable initiatives that benefit everyone within the supply chain, we can all grow smarter, stronger, and more sustainable together.
WE ARE STRONGER SMARTER & MORE SUSTAINABLE WHEN WE CONNECT AND PARTNER WITH OUR SUPPLY CHAIN!
Coming from a plastics background myself, there are some things everyone in our plastics industry supply chain should consider:
- Is receiving $.25 (x amt) per pound from selling off our plastic scrap to recyclers really the best way to maximize economic value from our recycling initiatives? Plastic scrap may have even greater environmental, strategic, and social purpose value than simply treating it solely as a commodity.
2. Is using 25% (or x%) recycled plastic resins back in our products & packaging, instead of prime, the best way to set us apart from our competitors? Can we use strategically sourced plastic scrap better, to create market advantages?
3. Is reusing packaging & optimizing the size of our packaging the most effective way for us to gain shelf space? Savings in raw material cost and transportation are excellent, but can we also utilize sustainable packaging initiatives to strengthen our customer and consumer relationships?
“The correlation between sustainability and commercial success is like proper nutrition is to victories for athletes, or reading and travel is to lyrics for musicians.”
There is a correlation between our company’s sustainability strategies and our commercial success in the market. Isn’t commercial success why we are all in business in the first place? Aren’t we all pushing relentlessly to add the greatest possible “value” to our businesses, differentiate and sell over our competitors, and continue to grow more sales with new & existing customers?
Neglecting benefit is the same as neglecting opportunity to win! Yes.. we recycle our plastic waste because it’s good for our environment and helps offset our costs associated with production loss. BUT … when plastic recycling also helps us increase revenue, gain over our competition, grow sales and shelf space, and build a more valuable brand, our ROI escalates profoundly.
Sustainability has the power to profoundly impact and improve our businesses. We shouldn’t be asking our supply chain partners to come to us with better ideas. Our supply chain partners should be relentlessly pursuing better ideas and helping us create circular eco supply chains that not only enhance our environmental initiatives, but connect us and improve our economic and brand initiatives too.
Big Brands should consider buying plastic scrap themselves. Here’s why.. Here’s how..
It’s a debate worth having. A great way to significantly expand plastic recycling is by expanding circular economies with circular supply chains that include Big Brands focusing on economic and environmental sustainability.
A circular economy will help ensure plastic scrap materials maintain economic value, have consistent markets, and importantly, a recollection process for used plastic products and packaging once they reach end of use in the market.
GearedforGreen works with many private and public recyclers across the country who want to get more involved in stronger circular collaboration with end user markets. In an eco-supply chain, recyclers collect consumer and industrial plastic scrap materials on a local level, which get sold to regional processors and compounders who convert scrap into hi-quality plastic resins (sustainable raw materials), then sold to national manufacturers making all kinds of new plastic products, looped back again to recyclers at end of use. From start to end everyone involved in the circular eco supply chain is connected.
Eco-supply chains enable local, regional and national businesses involved in recycling and sustainability to collaborate stronger and transparently working together rowing in the same direction. Scrap is connected to raw material, connected to new products, connected to consumers, looped back connected to recyclers in a continuous process.
Without circularity, companies involved in collection, processing and compounding “go it alone”, struggling with up and down plastic scrap prices, lack of markets for many kinds of plastic materials, and an over reliance on export markets. Circularity gets everyone in the supply chain teaming up together and helps maintain pricing and cost transparency which benefits the supply chain as a whole.
We can minimize these challenges and increase & improve plastics recycling markets when Big Brands take lead, connecting in circular eco supply chains. Big Brands are themselves the biggest consumers of plastic raw material. Big Brands across markets like Unilever, Procter & Gamble, Ford, Nike, Budweiser, L’oreal, Gillette, and so on, should stop selling off their own plastic scrap they generate in their own operations, and instead do an about face, connecting in circular eco-supply chains and becoming significant plastic scrap buyers instead.
Why ??? Big Brands make lots of plastic products and use lots of plastic packaging, hence they buy lots of plastic resins to make products. Big Brands consume hundreds of millions of pounds of new virgin plastic resins including polyethylene, polypropylene, polyester, and other grades, purchased through non sustainable supply chains from producers like Dow Chemical, Exxon Mobil, Sabic, BASF, Chevron Phillips, and so on, made from petroleum and natural gas.
By shifting to buying plastic scrap and participating in a more sustainable circular eco supply chain, scrap becomes a more prominent part of the plastic raw material stream for Big Brands.
Here’s how.. Instead of paying Exxon Mobil etc. for virgin resin, Big Brands buy plastic scrap direct in the open market and pay Processors and Compounders to produce recycled grade plastic resins. Today recycled plastic resins can be made to many specifications, even FDA compliant. By approaching plastic scrap and raw material sourcing from the top down, Big Brands can help increase plastic recycling rates, manage raw material cost, and take greater responsibility for products they make by creating closed loop circularity.
Big Brands carry big leverage because of supply demand. Supply demand dictates the more plastic products we make and sell, the more demand there is for virgin or recycled plastic resins. It’s a matter of choice which kind of raw materials we buy.
A modest shift reducing virgin resin consumption and increasing recycled resin consumption can make a tremendous sustainability shift for several reasons.
1st, it creates larger more consistent markets for recycled plastic resins which creates demand, which helps moderate pricing and adds more pricing transparency down the line which ultimately helps increase recycling rates.
2nd, it creates an environment ripe for innovation and investment. As Big Brands get more involved in circular eco supply chains collaborating with recyclers, processors and compounders, everyone will invest more resources which leads to greater innovation, improved processes, higher quality, etc.
3rd, it creates the closed loop infrastructure necessary for Big Brands to ultimately take greater responsibility for products they make once they reach end of use in the market. It also facilitates increased consumer engagement and participation in recycling contributing to increase recycling rates. When Big Brands integrate consumer sustainability incentives with education, consumers start to take ownership of their sustainability efforts which creates even stronger bonds between Big Brands and consumers, which can also equate to increased sales.
It’s a debate worth having, but from our perspective, circularity and eco supply chains will enhance sustainability and increase plastic recycling rates down the line.
Shedding our sustainable skins isn’t simply “helpful” to creating sustainability and economic growth for our businesses … it’s imperative!
Whether we are in the plastics manufacturing industry, distribution, or retail side, in business if we don’t force ourselves to shed our skins, to try something new and explore alternative methods, if we don’t innovate different approaches and set new goals for our business development, if we don’t shed our skins and get out of our comfort zones, we actually start to deteriorate and our results go backwards.
I’ve heard it said … “a bend in the road isn’t the end of the road, unless we miss the turn”. In today’s millennial marketplace, sustainability and CSR “corporate social responsibility” is that turn. We cannot expect to remain comfortable and remain competitive. We cannot expect to operate without continual innovation, improvement, and change yet sustain a growing improving organization.
When it comes to sustainability and the team we surround our businesses with, whether that’s our raw material supplier, our recycling vendor, our packaging provider, even our sales marketing communications firm, if our team isn’t continually evolving and continually helping our business evolve greener, then we shouldn’t expect that keeping “status quo” will realize us improved results, better performance, or bigger margins.
If we expect to lead, it’s incumbent upon us to “shed our sustainable skins” and innovate.
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