Connecticut Economy Benefits from Recycling Industry

Study finds recycling contributes $746 million and nearly 5,000 jobs to state’s economy.

November 28, 2012
Recycling Today Staff
Municipal / IC&I

According to a study by the Connecticut Economic Resource Center Inc. (CERC), Connecticut’s recycling industry contributes $746 million and 4,800 jobs to the state’s economy. Since 2006, recycling has contributed nearly $5.17 billion to the state’s economy as measured in total sales, according to the study, which the Connecticut Resources Recovery Authority (CRRA) commissioned.

CRRA, based in Hartford, Conn., is a quasi-public agency established by the state in 1973 to modernize the state’s solid waste disposal. Its solid waste systems serve 74 Connecticut cities and towns, and it establishes best practices for solid waste disposal and recycling management on behalf of the municipalities it serves.

“This study shows recycling is a vibrant and growing sector of our state’s economy and that CRRA, as Connecticut’s recycling leader, is the cornerstone of that economic sector,” says CRRA President Thomas Kirk.

The recycling industry in Connecticut directly contributes $435 million in sales and provides for more than 2,710 jobs to the state’s economy, according to the study. When related industries are considered, recycling accounts for more than $738 million in total sales and 4,790 jobs per year.

The study also shows in 2012 more than 4,800 people are employed in the recycling industry in the state. In terms of collective employee compensation, proprietors’ incomes, indirect business taxes, profits and other property-type income, the total value measured nearly $470 million, including labor income of more than $275 million and indirect business taxes of nearly $59 million and $134 million estimated in dividends, interest payments, rents and profits.

CERC performed the study using an IMPLAN economic impact analysis input-output model, which explored the total economic impact of the recycling industry at the state level and also the impacts associated with CRRA.

From 2006 through 2012, CRRA’s economic impact was $883 million in total output, 861 jobs per year and $529 million in total value-added, which includes labor income of $362 million. In addition, CRRA, through its recycling processing center in Hartford and satellite transfer stations around the state, operates and accounts for between 30 and 40 percent of the state’s total industry employment, according to the study.

“While these numbers are substantial, they are conservative estimates of the overall impact of all aspects of the recycling activities in Connecticut, which reach well into other industry sectors within the state,” says Alissa DeJonge, CERC director of research.

Based in Rocky Hill, Conn., the Connecticut Economic Resource Center Inc. is a nonprofit corporation and public-private partnership that seeks to provide objective research, marketing and economic development resources consistent with making Connecticut a more competitive business environment.