The information technology asset disposition (ITAD) industry is growing, just like the e-scrap it seeks to refurbish or recycle. More than 53.6 million tons of e-scrap were generated internationally in 2019 and 17.4 percent of that was recycled, according to the United Nations.

However, those numbers could change in the future as the right-to-repair movement, which encourages consumers to fix their own devices, continues to grow in the United States. The movement has become so popular that state and federal lawmakers and some original equipment manufacturers (OEMs) support it.

“People should have access to the tools, information and parts needed to repair their devices,” says Kyle Wiens, CEO of iFixit, an ITAD support company for people looking to repair their own devices. “Back in the day, that used to be normal. If you bought a television, you could go to a shop or repair it yourself."

As legislators and OEMs begin to support the movement, ITAD professionals weigh in on its impact on the industry.

A growing movement

Wiens has been working in the right-to-repair movement since founding the company in 2003. In 2014, he helped to introduce the first federal right-to-repair legislation, but the bill failed.

Last summer, the Biden administration issued an executive order directing the Federal Trade Commission to draft regulations limiting OEMs’ ability to restrict independent repairs of their products. One of the directive’s primary goals is to make it easier and cheaper to repair items by limiting manufacturers from barring self-repairs or third-party repairs.

Recently, Apple and Microsoft have switched their positions and now support the movement. Both have begun offering parts, services and manuals on how to repair their devices.

About 25 states considered right-to-repair laws in 2021. Recently, New York approved the Digital Fair Repair Act, which is right-to-repair legislation that makes it easier to fix electronics and farming equipment. However, the bill has yet to be approved and might not be approved until 2022.

Other states like Nevada, Texas and California also are considering right-to-repair legislation. Massachusetts is the only state with an official right-to-repair law for automobiles, which was approved in 2012. 

“It’s a fundamental right to be able to repair your own devices,” says Eric Ingebretsen, the chief commercial officers of TES, an ITAD company with its global headquarters in Singapore. “It’s confusing to me why something like this is controversial.”

Market benefits

Most industry leaders like Ingebretsen and Craig Boswell, president of Hobi International, an ITAD company based in Batavia, Illinois, say that right-to-repair legislation will benefit the industry and the environment.

Boswell says if regulations are adopted, the industry would see more quality parts for repairs. 

“This could allow us as independent repair facilities to have the same access to parts and the same ability to repair devices as an authorized service center or the OEM,” he says. 

The industry could also see a rise in sales for refurbished devices and an expanded customer base seeking to extend the life of their electronics. As a result of the increased demand for refurbished items, the value of electronics could rise, Wiens says.

Right-to-repair legislation also could open the possibility of establishing a regulatory body that would set standards and guidelines for OEMs and repair companies. The body could unify the industry and bring about increased regulations for OEMs and what they need to supply to companies. It could also create infrastructure to ensure companies receive quality parts for repairs.

“Right now, companies need to create their own methods or standards to repair and resell devices,” Wiens says. “This could standardize measures to recycle and refurbish devices.”

Being able to extend the life of electronic devices will also help stem the increase in e-scrap, which accounts for 70 percent of all the toxic waste in American landfills, the World Economic Forum reports.

“This could have a tremendously positive impact on waste diversion,” Boswell says. “The more we distribute good quality repair and make it more available to consumers, the more effective a circular economy becomes.”

Wiens says that right to repair could also improve safety at material recovery facilities because it extends how long lithium-ion batteries could be used. 

Possible setbacks

Ingebretsen says right-to-repair legislation could cause some issues. Smaller companies that recycle electronics will see a surge in end-of-life equipment. If unprepared, Ingebretsen says, it could cause a slowdown in services.

Another way right to repair could impact the industry is decreasing the value of parts on the secondary market. Ingebretsen says that since consumers will be able to extend the life of their equipment, electronics recyclers and refurbishers will get them later in their life cycle, increasing the odds that they’re obsolete or can no longer be used.

“The value does go down when harvesting parts from equipment the longer the device has been used,” Ingebretsen says. “Instead of getting memory that’s two years old, we’d get something that’s six years old instead.”

Some components that could lose value in the ITAD industry include graphics processing units, circuit boards and central processing units. However, Ingebretsen says he believes the market is agnostic, and prices could increase or decrease based on that.

Boswell says he believes that in some cases right to repair could be harmful to those who try to repair devices on their own, particularly since lithium-ion batteries power most electronic devices today. If improperly handled, the electronic device could catch fire or explode.

Moving forward

The timeline for right-to-repair legislation in the country is in flux. Wiens says the earliest some bills could be approved is March 2022, but it depends on how fast legislative bodies move. Wiens says the legislation will get introduced and passed depending on how many people voice their opinions on the right-to-repair movement.

“We’re looking to state-level legislation next year,” Wiens says. “We expect more than 20 different states to introduce bills next year, including Massachusetts and Florida.”

Some manufacturers don’t want legislation to be passed and would prefer that the industry handle repairs.

Boswell says a governmental path could add complexity and increased costs to companies in the ITAD industry. Instead, he says, he would propose that a self-regulatory body oversees how the industry operates.

“If we self-regulate, first of all, it would be nationwide,” Boswell says. “It would also be an industry-driven plan that would hopefully create parameters that are beneficial for both repair organizations and OEMs.”

The city of Hartford, Connecticut, has announced that it has selected Murphy Road Recycling LLC’s bid to assist the city’s waste disposal efforts. Once an agreement is finalized, Murphy Road will handle the transfer and disposal of Hartford’s municipal solid waste. Murphy Road’s Hartford facility will serve as a transfer station, collecting waste from Hartford’s sanitation truck fleet before shipping it to disposal facilities.

According to a news release from the city of Hartford’s Mayor’s Office, the contract with Murphy Road will span five years. The city reports that the new agreement replaces the city’s partnership with the Materials Innovation and Recycling Authority (MIRA) plant in Hartford. The city says MIRA intends to discontinue its trash incineration operations at the end of June 2022.

Hartford city officials report that this new deal will save the city about $300,000 to $500,000 per year, and it also would be cost-efficient for private haulers and trash collectors serving the city’s businesses and larger multifamily residential buildings and developments. The city says Murphy Road’s location in Hartford will enable the city’s waste collection fleet to more efficiently transfer trash for disposal. Additionally, processing of the city’s recycling will remain free, with this function being handled at Murphy Road’s material recovery facility in Berlin, Connecticut.

“After careful consideration of the bids we received, we are proud to be awarding Murphy Road with a bid to join our waste disposal efforts,” says Michael Looney, director of public works for the city of Hartford. “We have already worked with Murphy Road for the city’s recycling needs, and we have talked to other municipalities that are very satisfied with the level of service provided by Murphy Road.”

Murphy Road Recycling, headquartered in Enfield, Connecticut, is part of a family-owned and operated team of subsidiaries and affiliates that provide recycling and waste management services to Connecticut and western Massachusetts.

Maximizing productivity is a continuous concern for recycling operations, and the right control system can reduce headaches and streamline processes, says Best Process Solutions Inc. (BPS), Brunswick, Ohio. The company adds that its panel-building department delivers quality controls that allow for seamless integration into an existing system. The department also can custom design a system for a complete recycling line from beginning to end.

BPS says its systems are designed to run with some of the most advanced networking technologies from top companies like Rockwell Automation, Siemens and ABB, and its containerized control systems are built to withstand outdoor conditions.

The company says it also builds recycling control panels for existing equipment or systems and can function as the engineering arm for a manufacturer that wants to take its equipment to the next level by implementing BPS control panels.

SJI, an energy infrastructure company based in Folsom, New Jersey, and REV LNG, an energy supplier in Ulysses, Pennsylvania, recently broke ground on renewable natural gas (RNG) facilities at four Michigan-based dairy farms. The projects mark the partners’ first series of renewable energy projects to break ground outside of the Northeast region.

According to a news release from SJI, the projects will include constructing 2 million-gallon anaerobic digesters and related RNG facilities to capture methane produced by cow manure at each of the four farms. 

The projects will also implement equipment that cleans the digester-produced biogas, transforming it into commercial-grade pipeline-quality RNG. REV LNG has led early-stage development for SJI and will preside over the construction of the RNG facilities, expected to be operational by late 2022.

“REV LNG is committed to implementing creative energy solutions that help our company and the clients we serve to reduce our carbon footprints,” says David Kailbourne, CEO of REV LNG. “I am thrilled to see these projects break ground and look forward to REV LNG and SJI’s continued partnership in this area of interest. In addition, I’d like to thank the families at Double Eagle, Roto-Z, Goma and Z-Star farms for bringing these projects to life.”

Together, the four sustainable, family-owned farms will help to produce nearly 3 million therms of RNG per year. SJI says 3 million therms of RNG is enough to offset the negative environmental impact of 1.8 million gallons of gasoline consumed per year within the United States.

SJI and REV LNG had also recently announced plans to begin construction on an RNG facility at Oakridge Dairy, a large dairy farm in Connecticut.

“SJI recognizes that to achieve our goal of 100 percent carbon reduction by 2040, working collaboratively with organizations that share our same mission is critical,” says Mike Renna, president and CEO of SJI. “With that, SJI is proud to partner with REV LNG and dairy farms across the nation on these innovative clean energy projects that I am confident will result in positive environmental outcomes for the regions we serve and beyond.”