The Institute of Scrap Recycling Industries (ISRI), Washington, has released a study that highlights the role the scrap industry plays in the U.S. export market. The study, prepared by the Brooklyn, New York-based economic research and consulting firm John Dunham and Associates, claims the scrap recycling industry is responsible for creating more than 125,000 U.S. jobs through its exports, which account for more than 26 percent of the scrap industry’s economic activity.
“Exporting to more than 160 countries, scrap recyclers play a critical role in helping the U.S. balance of trade,” says Robin Wiener, president of ISRI.
“This past year brought many challenges to the industry, including falling commodity prices and the slow down at the West Coast ports," she adds. "However, the recycling industry overcame these obstacles and showed that it is a proven economic driver, creating high-paying jobs and generating billions of dollars in federal, state, and local tax revenues.”
The study finds that nearly 28 percent of the scrap materials processed in the United States are exported. In 2015, in addition to the 39,022 jobs supported by the export activities associated with the processing and brokerage operations of scrap recyclers in the United States, an additional 46,023 jobs are provided by supplier operations and through the indirect effects of scrap recycling exports.
All of this activity generates $28.34 billion in economic benefits in the United States and contributes $1.31 billion in tax revenues for the federal government and $1.65 billion in state and local revenues, according to the report.
The data were included as part of a study conducted to determine the size and scope of the scrap industry in the United States and to document its significant contribution to the economy in terms of employment, tax generation and overall economic benefit. (See www.RecyclingToday.com/isri-2014-scrap-recycling-industry-economics.aspx.)
“While the scrap recycling industry has shown to be a major player in the U.S. export market, it also continues to produce enough supply for domestic manufacturers now and far into the future,” concludes Wiener. “As the first link in the manufacturing supply chain, recyclers are a positive solution to strengthening all aspects of the American economy.”