By Paul Ploumis
SPOKANE (Scrap Monster): According to the new economic impact study report released by the Institute of Scrap Recycling Industries (ISRI), the US scrap recycling industry continues to remain as a major generator of jobs and economic activity. The industry accounted for nearly half-a-million jobs in the country. Also, the scrap industry generated more than $116 billion in economic activity per year. The study was conducted on behalf of ISRI by the independent consulting firm John Dunham & Associates.
The study report performs an economic impact analysis to document the size and scope of the scrap recycling industry in the US. It also analyzes the industry’s contribution to the US economy in terms of employment, tax generation and overall economic benefit. The study covered all companies involved in the processing and brokerage of scrap metals, plastics, paper, electronics etc.
Robin Wiener, president of ISRI noted that the study results clearly upholds the resilience and positive momentum of the US scrap recycling industry for the future, despite facing critical challenges in tandem with commodity markets over the past two years. Wiener admitted that the market is not completely out of unpredictability. Still, the report underscores the importance of the industry as a major economic driving force. The industry will definitely continue to play prominent role in formulation of international trade and fiscal policies by the US administration, Wiener added.
According to ISRI study, the US scrap recycling industry, apart from being a major economic engine has also played crucial role in delivering environmental benefits. As per latest estimates, the industry recycled more than 130 million metric tons of materials in 2014, thereby reducing greenhouse gas emissions and leading to significant saving of energy needed to manufacture new products. The energy thus saved was used for other purposes such as lighting homes and powering automobiles, the report noted.
The study report notes that the US scrap recycling industry is responsible for creation of 534,506 indirect and direct jobs in the country. The overall wages paid by the scrap recycling industry exceeds $34.3 million. Out of this, 155,630 are direct jobs that pay an average of $76,515 in wages and benefits.
The US scrap recycling industry generates substantial revenues for state and local governments throughout the US, as well as for the federal government. It generates more than $4.95 billion in state and local tax revenue every year. Another $8.26 billion in federal taxes are paid annually by the industry and its employees. Also, the country’s scrap recycling industry accounts for 0.63% of the nation’s economic activity, the report noted. The overall economic effects were the largest in states such as California, Texas, Florida, Ohio and Illinois. For instance, California and Texas industries generated 14,989 and 10,640 direct jobs. In short, the industry has been extremely successful in providing good-paying jobs in every state in the union.
The Institute of Scrap Recycling Industries, Inc. (ISRI) is the Voice of the Recycling Industry. ISRI represents more than 1,600 companies in 21 chapters nationwide that process, broker and industrially consume scrap commodities, including metals, paper, plastics, glass, rubber, electronics and textiles. With headquarters in Washington, DC, the Institute provides safety, education, advocacy, and compliance training, and promotes public awareness of the vital role recycling plays in the U.S. economy, global trade, the environment and sustainable development.