Monday, October 6th, 2014

SPI Supports APBA Referendum on California SB 270

By William R. Carteaux, President and CEO, SPI: The Plastics Industry Trade Association

William R. Carteaux, President and CEO, SPI

William R. Carteaux, President and CEO, SPI

As I mentioned last week in my comments at the 2014 Global Plastics Summit, California recently enacted SB 270, the nation’s only statewide plastic bag ban. SPI: The Plastics Industry Trade Association always has and always will advocate for science and fact-based legislation, but SB 270 does not fit this description. In a press release issued last Tuesday, the American Progressive Bag Alliance (APBA) announced it would take the steps necessary to gather signatures and qualify a referendum to repeal it:

“The approval of SB 270 by the California legislature and Governor Jerry Brown could serve as a case study for what happens when greedy special interests and bad government collide in the policymaking process. 

“Senator Padilla’s bill was never legislation about the environment. It was a back room deal between the grocers and union bosses to scam California consumers out of billions of dollars without providing any public benefit—all under the guise of environmentalism. If this law were allowed to go into effect it would jeopardize thousands of California manufacturing jobs, hurt the environment and fleece consumers for billions so grocery store shareholders and their union partners can line their pockets.”

SPI supports the APBA in opposing SB 270 and seeking a referendum. We do not believe that in passing SB 270 California lawmakers acted in the public interest, and we trust that the public will repeal it at the ballot box.

Plastic bags are the smartest, most environmentally-friendly choice at the checkout counter. Ninety percent (90%) of Americans reuse their plastic bags as trashcan liners, pet waste bags, lunch bags, etc., despite the fact that SB 270’s proponents have attempted to brand plastic bags as “single-use.” This is a myth that’s disproven every day in homes across America. When plastic bags outlive their usefulness, they can be recycled: they are 100% recyclable and can be converted into building materials like decking, fencing and playground equipment. Moreover, they consume less than 4% of the water, generate less than 80% of the waste and require less than 70% of the energy necessary to manufacture their paper counterparts. In addition, consumers will be forced to pay at least 10 cents for every paper bag they purchase.

As for the bags that are oil-derived and made in China, which SB 270’s proponents promote, most are made from nonwoven polypropylene, which isn’t recyclable. In addition, cotton grocery bags must be used 131 times before their contribution to global climate change becomes lower than that of a plastic bag used just once. These bags also have been found to contain toxic lead and harbor harmful bacteria.

Further, plastic bags make up less than two percent (2%) of California’s municipal waste stream and just fourth-tenths of a percent (0.4%) of the overall American waste stream. Thus the bill’s environmental impact will be negligible if not nonexistent. Proponents have been forced to acknowledge this, choosing instead to label SB 270 “a good start.” For them, plastic bags are just the beginning, and plastic bottles, cutlery and other materials are now in their crosshairs.

apba logo_2012That is the issue at hand. The lack of science or logic in SB 270 sets a disconcerting precedent for what legislators could do under the guise of environmental stewardship. This should concern the plastics industry at large: unscientific bills supported by special interests could encourage bans on other plastic products. This must be the beginning of a discussion that plastics recyclers, suppliers, manufacturers and processors have about the future of the industry. The APBA has started this conversation, and we hope the entire plastics supply chain chooses to be a part of it.

Wednesday, October 1st, 2014

At GPS, a Positive Outlook for Plastics but Risks Remain

As a manufacturing sector, plastics has outpaced its counterparts in terms of economic growth since the 1980s. The industry looks poised to continue this trend too, as a panel of economic and plastics experts testified this morning at the Global Plastics Summit (GPS) in Chicago, hosted jointly by IHS and SPI: the Plastics Industry Trade Association.

IMG_0190However, risks remain for the plastics industry, most notably the lower levels of productivity that are restraining the pace of economic growth. “That productivity issue represents some real risks,” said David Witte, senior vice president of IHS Chemical, tying the issue to a lack of education on the part of the public regarding the number and type of careers available in the plastics and manufacturing industries. “There’s some really, really good jobs out there that are more trade related and I think we have to start focusing on that shortfall.”

SPI CEO and President Bill Carteaux agreed, noting that the long period of exceptional growth in the plastics industry that has persisted since the 1980s because there were always enough workers to fill openings and keep production high. “That growth caught up with us,” he said. “The next generation of the workforce, that issue is not going to be solved in DC, it’s going to be solved on the local level, going back in to the high schools and educating the teachers and guidance counselors to steer these young people into these great careers.”

Carteaux’s point that local activism, education and regulatory support will be key to maintaining the plastics industry’s success was echoed by the rest of the panel. On a federal level, however, the picture is a bit grimmer, but the priority for plastics is educating officials and the public. “We as an industry broadly have the task to educate people on what we do and we’ve done a lousy job,” said Kurt Barrow, vice president of oil markets and downstream at IHS Energy. “What we’re up against is the NIMBY (not in my back yard) mentality and the environment al lobby that doesn’t understand unless it’s a solar cell on top of a car or bicycle. They’re the minority but they’re very vocal in the political realm, and our job is really to kind of get the government engaged.”

“The best thing the government can do is to stay the heck out of the way,” said panelist Nariman Behravesh, IHS chief economist, summarily. “Let me just leave it at that in the interest of time.”

Barrow warned that the sudden institution of strict regulations that affect plastics could conceivably restrict access, increase costs and, in a word, “throw growth off the rails.” SPI has called for regulatory reform as well, to create an environment in which plastics can not only maintain its current state and operate without costly, ill-advised rules that aren’t based on facts, but also grow even faster than its current rate.IMG_0173

Still, the labor shortage for manufacturers continues to be a growth-limiting restriction. “The regulation side is huge,” Carteaux said when asked for what the greatest threats to plastics were. “But I think the other big issue when you look at the investments in plastics is ‘are we going to have enough people to build it? Are we going to see the capacity to put those facilities up?’”

SPI in particular continues to work to eliminate these risks to the plastics industry with its aforementioned call for reform and its recently launched PlasticsU, a one-stop online warehouse of educational resources for companies seeking to train new and existing workers. Learn more about the manufacturing employment landscape here.

Friday, September 19th, 2014

Curbside Collection for Capital Assets: CAMS Extends Zero-Waste Philosophy to Plastics Manufacturing Machinery and Equipment

The earliest forms of curbside recycling for consumers date back to the mid-1970s, and even today this system is the primary way that U.S. citizens participate in the effort to recycle and recover plastics. The plastics industry has set itself a goal of zero waste, and in many ways consumers are often thought of as the foot soldiers in this effort. While brand owners take much of the heat, and confusion often swirls around the technical details of what can be recycled and how, it often comes down to consumers recycling the plastics they use, and the industry processing them into new products, in a way that ideally closes the loop, gives plastic items second lives and saves high-quality usable material from the landfill.

2013-SPI-capital-asset-logo-cmyk-2SPI is committed to making it easier for consumers to recycle and reuse the plastics they encounter in their everyday lives, but has also enlisted the entire plastics industry in the pursuit of zero waste. In particular, SPI’s Recycling Committee has continually worked to educate the industry on zero-waste strategies and initiatives while also fostering expansion in the market for recycled material. Launched last year, RecyclePlastics365.org is an online plastics recycling marketplace that connects buyers and sellers of scrap plastics materials and recycling services “without the ‘needle in a haystack’ chore of sorting through the clutter of an Internet search,” said SPI Director of Recycling & Diversion Kim Holmes, adding that “SPI is committed to helping the industry divert all plastics from the landfill.”

Holmes’ statement is indicative of the supply chain-wide approach SPI has taken to reaching a 100 percent diversion rate for plastics. But while this effort has primarily focused on recovering plastic products and packaging, it’s only recently expanded to facilitate the recovery and reuse of plastics machinery and manufacturing equipment.

The plastic materials that have gone into some of the most life-changing, orbit-altering innovations of the last half a century weren’t plucked from trees. They were designed, processed and manufactured using increasingly state-of-the-art equipment on factory floors. They then went on to become the products that end up on suburban street corners once a week, in blue containers marked with the chasing arrow. While consumers can take their bottles out to the curb and their bags to the grocery store for recycling, a plant that produces or processes plastics doesn’t have those options when it comes to their old equipment. Firstly, they don’t make blue containers big enough, and moreover hauling used, underused or outdated machinery to the side of the road is a waste that would likely yield only fines and penalties.

In short, there’s never been a curbside pickup for capital equipment and machinery, but that’s what SPI, in partnership with Meadoworks, hopes to change with its recent launch of Capital Asset Management Services (CAMS). Through its online interface, similar to RecyclePlastics365.org, manufacturers can appraise their assets, dismantle and remove obsolete equipment and even find a new home for used equipment.

CAMS is both an example of the zero-waste philosophy in action and an investment in the plastics industry’s future. “The success of the entire plastics industry depends on the success of today’s manufacturing equipment,” said SPI President and CEO Bill Carteaux. “As companies continue to grow, so too must the technology they use.” Through CAMS, companies can upgrade their manufacturing equipment while also giving other companies in the market the opportunity to buy their used equipment that’s still worth using, and in the end, all parties benefit. “While participating in this program makes good business sense for today,” Carteaux said, “it also helps our competitiveness in the future.”

Columbus-recycling-binWhat makes CAMS similar to a curbside pickup service for manufacturers looking to recycle their machinery is the fact that in the same way that curbside pickup exists for the consumer’s convenience, CAMS exists for the manufacturer’s. “The key advantage of this program is that you don’t have to be an expert in asset management to benefit from expert knowledge,” said Meadoworks President Brian Walsh. “From the moment you decide to be a part of the marketplace, everything from valuation to marketing and eventually removal will be taken care of for you.”

Trading in and trading up when it comes to plastics manufacturing and processing equipment has often been a complicated, daunting process simply because there was no centralized marketplace. CAMS fills that void by connecting buyers and sellers around the world, while also providing the expertise and convenience necessary to benefit manufacturers of all sizes, supporting their growth and cementing their commitment to industrywide sustainability. At its simplest, CAMS presents an opportunity for manufacturers and processors to invest in the future of the plastics industry, which works best when it works together, inching closer and closer to zero.

Tuesday, September 16th, 2014

A Skills Gap Needs a Skills Bridge: SPI Launches PlasticsU

The manufacturing industry accounts for more than 17.4 million American jobs and nearly 12 percent of the nation’s GDP, but it should account for more.

The skills gap separating manufacturing from fulfilling its true contributive potential for the American economy has been well documented, and at this point isn’t even a recent, new or isolated phenomenon. On both a global and strictly American basis, jobs in the skilled trades have been among the most abundant, and yet the most difficult to fill, for many years now, although it should be noted that part of the issue keeping people from taking jobs in this field is perception.

More than a century has passed since the first assembly line developed for the manufacture of the Ford Model T began operating, but tell someone today to picture a job in manufacturing and the image that pops into their head is still a sepia-toned photo crowded with men in flat caps and overalls performing menial tasks over and over again, until a whistle signals their release. Americans often view the factory as the product of a less enlightened era, stranded in time like a mosquito in amber, but the reality is that today’s factories are nothing like your grandfather’s. Manufacturing as an industry has kept pace with the modern world—technologically, operationally and environmentally—and in many ways it even functions ahead of its time, providing excellent support for employees and their families, enabling the innovations that MFGDay2014Logomake modern life possible and ratcheting up the possibilities for what the future will eventually look like. Events like Manufacturing Day exist to pull back the curtain on the nation’s factories, and dispel the myth that these state-of-the-art facilities are somehow antiquated.

As manufacturing in the U.S. confronts its perception gap, it’s also working to combat its more-easily-quantified skills gap: the difference between the number of workers needed, and the number of workers qualified, to keep factories humming. For the plastics industry, the nation’s third-largest manufacturing sector that already comprises nearly 900,000 American workers, the first block in the bridge that closes the plastics industry manufacturing skills gap is PlasticsU, officially launched Monday by SPI and Tooling U-SME, a leading workforce development and training provider.

“Our industry has some of the best and brightest workers, operating top-of-the-line equipment and technology,” said SPI President and CEO William R. Carteaux. “Unfortunately, many of the technological advancements made recently are being held back by a growing manufacturing skills gap, which is why SPI partnered with Tooling U-SME to launch PlasticsU.”

SPI Plastics-U-final-outlinesAimed directly at the heart of the manufacturing skills gap, PlasticsU provides manufacturers a new suite of online training programs tailored specifically to the plastics industry. Courses were designed and added in order to meet the needs of the broadest selection of stakeholders possible, meaning companies throughout the supply chain can find something helpful when it comes to training and developing their workforce. Expertise levels range from basic introductions to the most advanced studies, with more than 400 courses and more than 60 instructor-led training titles all conveniently available through the PlasticsU portal, offering companies the ease and flexibility that they need to design new workforce development programs or to augment their existing programs.

“The plastics industry will not realize its full capacity for growth and production unless companies take an active approach to workforce development,” Carteaux added. “PlasticsU offers these companies flexibility and convenience to make this process easy.”

Manufacturing in the U.S. has already made enormous strides since the recession and is poised to become an even greater part of the American economy. The industry continues to combat its perception gap, an effort to which SPI has been proud to contribute. But the manufacturing skills gap is real, and so are its limiting effects. A modernized manufacturing industry is one that has modern problems, and the manufacturing skills gap is a perfect example: a modern problem to which PlasticsU is a modern solution. As the manufacturing industry continues to build the bridge that will close its skills gap, SPI and PlasticsU makes a bold case for the bridge being made out of plastics.

Learn more about PlasticsU here.

Friday, September 5th, 2014

The California Bag Ban and a Lesson on How Not to Legislate

By Lee Califf, Executive Director, American Progressive Bag Alliance (APBA)

The California State Senate approved SB 270 last week, sending a fee on paper bags and the nation’s first statewide ban of plastic bags to Governor Jerry Brown (D) for consideration. Several environmental groups have all but danced in the streets to celebrate the bill’s advance, despite the fact that:

  • plastic bags comprise less than a half of a percent of the U.S. municipal solid waste stream and banning them will have little, if any, effect on reducing litter;
  • plastic bag production generates 80 percent less waste and requires 70 percent less energy to manufacture than paper counterparts; and
  • plastic retail bags are 100 percent recyclable, reusable and made with American natural gas, an environmentally-friendlier alternative to other fossil fuels.

But each of these facts obscures a bigger point about the legislative process that brought SB 270 to Governor Brown’s desk: this so-called “environmental” legislation never had anything to do with the environment.

The Bag “Bargain”

In the process of making environmental policy choices, it often doesn’t take long for the discussion to veer away from the scientific and toward the emotional. Broad considerations for the planet’s future touch deep ideological nerves, so this makes sense, but it can often stifle conversations about actual science, as well as the real environmental ramifications of the policy proposal.apba logo_2012

Recognizing this, proponents of SB 270 decided never to entertain the very good environmentally-friendly reasons to vote against the bill, some of which are outlined above, but instead stood on the assumed truths that have similarly derailed so many other policy discussions. Furthermore, money spoke louder than environmental imperatives or the supposedly inherent evil of plastics, as supporters of the bill made grocers and unions an offer they couldn’t refuse: support SB 270 and we’ll direct the fees collected from the paper bags to you.

The Future

The bill’s lack of real environmental bona fides, along with its enactment via back-room deal, should lead anyone to scoff at the suggestion that SB 270’s success will somehow amount to a win, for any constituency, environmentally-focused or otherwise. For them it’s a symbolic victory, and while they’re celebrating the nation’s only statewide bag ban, all the baggage that comes with this deal isn’t commendable.

In many ways, the bill effectively scams consumers out of billions of dollars in bag fees. It’s a tax, of sorts, but typically taxes go back into state coffers to further benefit the public. In SB 270’s case, the fees collected from consumers won’t be used to pay for a road, a fire truck, a better school or even a marginal environmental benefit; they’ll be used to line the pockets of California grocers.

California has created a prime example of how not to legislate (fleecing consumers and damaging the state economy, all in the name of an imaginary environmental benefit), and other states might not be too eager to follow in California’s footsteps for that very reason, as well as some additional legal concerns. Most states probably won’t be willing to put this kind of fee on bags and give the money to grocery stores, and even if they were willing to do so there are some serious constitutionality questions about that. In effect it’s a tax that’s not going to the government. The private interest gets the money.

But on a more basic level, most states also wouldn’t, or shouldn’t, want to enact a tax on their citizens that essentially amounts to a form of corporate welfare for grocers, all while threatening the state’s economy. SB 270 puts 2,000 Californians that are employed at risk of being unemployed, all for the sake of a dirty deal between California grocers and union bosses. APBA stands with those workers, and with all Californians, as we continue to fight this dangerous and misguided piece of legislation.