Monday, November 3rd, 2014

SPI: EPS Foam Can Be Recycled, Easily and Profitably

SPI and its Recycling Committee are, once again, out to correct another misconception about plastics.

Expanded polystyrene (EPS), the kind that’s found in coolers, in takeout food packaging, in shipped cardboard boxes filled with packaging peanuts and in many other contexts, is a material that’s widely misunderstood and, in more than one corner of the consumer world, mistakenly thought to be unrecyclable.

“EPS serves many important roles in our lives,” said the SPI Recycling Committee in a new paper, titled “Unlocking the EPS Recovery Potential: Technologies Enabling Efficient Collection and Recovery.” “It insulates. It protects. It has a fraction of the environmental impact in the full life cycle compared to other non-resin alternatives. The greatest challenge for this material at end-of-life is, however, also a symptom of its best feature; it is light, creating a unique set of challenges for collection and processing.” However, as the paper outlines, when paired with the right technology solutions, these challenges are easily overcome.

Dart Container’s PS foam recycling support includes collection/shipping containers.

In the just over a year that it’s been in existence, the SPI Recycling Committee has already notched success after success in moving the needle on plastics recycling, and its EPS paper is the latest effort to prolong its winning streak. “Unlocking the EPS Recovery Potential: Technologies Enabling Efficient Collection and Recovery” finds that “lack of awareness and infrastructure to support the collection of EPS has been cited as a significant barrier to expanding the collection of EPS products,” but that “having the right technology in place to support efficient collection and processing of EPS products is key to unlocking the recovery potential of these valuable materials.”

As such, the paper provides a primer to recyclers working domestically and internationally on what technologies are available to make EPS recycling possible and profitable. In addition to broadly discussing the EPS market and opportunities contained therein, “Unlocking the EPS Recovery Potential: Technologies Enabling Efficient Collection and Recovery” also includes a list, complete with information on equipment capacity and availability, of technologies recyclers can use to expand their EPS processing capability.

“Investing in technology to expand the recovery and processing of EPS can enable plastics recyclers to meet both an economic and environmental need,” said SPI President and CEO William R. Carteaux. “Increasing recycling rates for all types of PCR plastic materials is both good business and good corporate citizenship, and the SPI Recycling Committee continues to do an excellent job leveraging its unique position in SPI, and throughout the entire $374-billion plastics industry, to expand end-use opportunities for recycled plastics, including EPS.”

spi_logo_2000x1007Facts, figures and intelligence such as that contained within the Recycling Committee’s EPS report do more than just serve as valuable business tools for companies in the plastics industry. They also combat the misconceptions that keep plastic materials like EPS and others from being recycled. “People just don’t realize all the options in recycling that are out there,” said Jon Stephens, senior vice president of Avangard Innovative and chairman of the SPI Recycling Committee’s Technology and Equipment subcommittee. “Half the people don’t even know they can take their grocery bags back to the grocery store to be recycled. Once we can get this education piece out and promote recycling and let citizens know that they can recycle this material, more communities will collect it, keep it out of landfills, reduce the space and create a revenue stream for the product.”

“It’s a huge environmental benefit,” he added. “Like any other plastics packaging material, it does serve a purpose, if not for the plastics industry then for the food industry or for the packaging industry. It all serves a purpose.”

Friday, October 31st, 2014

SPI 2014 Student Video Contest Offers Biggest Prize Package in Contest History

$8,500 in Cash, All-Expense-Paid Trip to NPE2015 Still Up For Grabs

Entrants in the Plastic Industry’s 2014 Student Video Contest, hosted by SPI: The Plastics Industry Trade Association and the Future of Plastics Foundation, aren’t just competing to create the best video that smartly and creatively explores the plastics industry’s bright future. They’re also competing for the largest prize package in contest history.

SPI and the Future of Plastics Foundation, along with the contest’s generous sponsors, will award prizes to the top three submissions. Third place gets $3,500, second place gets $5,000 and, if offering the biggest prize pool in the contest’s history wasn’t a big enough milestone, for the first time ever, the grand prize winner of the Student Video Contest will receive an all-expenses-paid trip to Orlando, Fla. for NPE2015, the premier event for the entire plastics industry.NPE_logo

This year’s contest asks students to submit 2-4 minute videos on the theme of “Innovating in the 21st Century,” challenging graduate and undergraduate students, as teams and/or as individuals, to explore the future of plastics in the realms of innovation, design freedom and the economics of plastics. Prior contests have focused on the history of plastics and how the world’s brightest minds have relied on these materials to carry society into the modern era, like 2012’s first and second place winners.

“But the truth is that the story of plastic’s past has already been told; we want students to tell us the story of plastic’s future,” said SPI President and CEO William R. Carteaux when this year’s contest launched. “Many of the items that we take for granted today seemed like science fiction even a decade ago, but what innovations in plastic will we be saying that about in 10, 25 or even 50 years from now? That’s the question we want our best and brightest to answer in the 2014 Student Video Contest and its theme of ‘Innovating in the 21st Century.’”

Entries will be accepted until Nov. 30. If you’re a full-time undergraduate or graduate student in a plastics program, and want a shot at $3,500, $5,000 or an all-expenses-paid trip to the world’s largest plastics trade show and conference, click over to SPI’s Student Video Contest website for details, and let us know what you think the future holds in store for the plastics industry.

Thursday, October 23rd, 2014

Democracy in Action: Fort Collins City Council Repeals Bag Fee Ordinance after Citizen Opposition

On Tuesday the City Council of Fort Collins, CO repealed the city’s bag fee ordinance, following public outcry and a concerted signature-gathering effort conducted by a group called Citizens for Recycling Choices. After the city clerk certified the legitimacy of the signatures, the council could’ve placed the ordinance on next year’s ballot, called a special election to decide the issue or repealed the law outright. Councilmembers chose the last option, scrapping the law in a 6-1 vote.

Fort Collins’ ordinance would’ve required retailers to charge a 5-cent bag fee on all bags defined broadly as “disposable,” which included standard LDPE plastic grocery bags that are 100 percent recyclable and reusable. As reported in The Coloradoan, speaking before Tuesday’s repeal Fort Collins City Councilmember Gino Campana said, “citizens went out and formed an initiative and got enough signatures. That’s enough for me to say repeal this.”

“I believe we can be more innovative than charging a fee for a bag,” Campano added.Recycled plastic bags image

After voting to repeal, the Council reiterated that it would continue to work toward zero waste through increased recycling, a goal shared by SPI and the plastics industry at large. The Fort Collins bag fee, which lasted from the council’s adoption of Ordinance 99 in August to its decision to repeal the same ordinance this week, offers a textbook example for recycling advocates to follow when working to make their voices heard about other misguided bag bans and taxes.

SPI opposes bag bans and fees while supporting zero waste and recycling initiatives and hopes other municipalities will consider more innovative approaches to waste management. SPI also hopes that this successful effort in Fort Collins will galvanize voters, who have the power to correct public misconceptions, help preserve choice in the marketplace and hold their legislators accountable for their actions.

Wednesday, October 15th, 2014

A World of Opportunity: Exporting Benefits Your Bottom Line

By Michael Taylor, SPI Senior Director, International Affairs and Trade

Michael Taylor, SPI Senior Director, International Affairs and Trade

Michael Taylor, SPI Senior Director, International Affairs and Trade

More than 70 percent of the world’s purchasing power and more than 95 percent of the world’s population is located outside of the United States. Your competitors are increasing their global market share, and you can too. According to a study published by the Institute for International Economics, U.S. companies that export not only grow faster, but are nearly 8.5 percent less likely to go out of business than non-exporting companies.

Less than 1 percent of America’s 30 million companies export—a percentage that is significantly lower than all other developed countries. And of U.S. companies that do export, 58 percent export to only one country. Many businesses could benefit from learning more about these international opportunities and resources available to help.

When evaluating a possible export market opportunity, there are a number of factors you should keep in mind. Here is a  list for consideration:

  • Economic growth (GDP growth rate)
  • Per capita income
  • Income distribution
  • Size of consumer demand
  • Inflation rate
  • Currency fluctuation
  • Economic and political stability
  • Ease of doing business (World Bank’s ranking)
  • Tariff and taxes
  • Non-tariff barriers
  • Demographics
  • Cross border transfer of goods
  • Banking system
  • Culture and business practices
  • Infrastructure, ease of moving products, communication, roads, ports and airports

In reference to evaluating ease of doing business listed above, the World Bank has developed an Ease of Doing Business Index. Economies are ranked on their ease of doing business, from 1 – 189. A high ranking on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm. This index averages the country’s percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic. Countries are given an overall “Ease of Doing Business” rank (out of 189 economies) and rankings by each topic.

Although the index is not plastics-industry specific or exclusively regulatory in its focus, the index provides an excellent benchmarking tool to assess the general business climate/environment over time and in comparison to other export markets. Here is an example of what the World Bank produces.

Ease of Doing Business

Of course, special attention should also be given to existing free trade agreements (FTAs). The U.S. has free trade agreements in force with 20 countries. U.S. exports to FTA partners are up 57 percent since 2009. Forty-six percent of U.S. goods exports go to its trade agreement partners. U.S. export growth to FTA partners (57 percent) has grown more rapidly than exports to the rest of the world (44 percent). The U.S. has a $15.2 billion trade surplus in non-oil products with its FTA partners, nearly 70 percent higher than the 2009 value. In 2013, plastic resin and products manufacturing (Harmonized Schedule Chapter 39) had a $17.6 billion surplus with its FTA partners.

So the reasons for exporting are many, and the benefits go beyond just increased sales. If you are interested in exploring what market opportunities exist specifically for you, then contact SPI’s Washington office at 202-974-5200.

This piece is an excerpt of an article that appeared in the Fall 2014 edition of The SPI Magazine. Click here to read the full version online, or download the SPI Magazine and SPE Magazine mobile app, available free in the App Store and in Google Play

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.