Facility managers have enough safety risks to consider without these threats compounding when scrap materials—cardboard, plastics, and metals—pile up to create tripping hazards and attract pests. They see these materials as waste and a nuisance that costs money to remove. The standard reaction is to hit the “easy button” by calling a hauler, paying a fee, and making everything disappear.

But what if these piles of waste are more than just a nuisance? What if these recyclables are potential sources of cost savings or revenue being hauled away at the facility’s expense?

A facility’s waste stream is a potential gold mine, but only if it’s optimized and commoditized. Doing so requires a shift in mindset, from viewing recycling as a compliance burden to understanding it as an asset.

Empowering the circular economy
Every day, facilities dispose of waste materials that can and should be recycled. According to the Environmental Protection Agency, the U.S. sends more than 146 million tons of waste to landfills every year. It’s estimated up to 75% of that waste could be recovered or recycled.

At its core, circularity is about taking something destined for a landfill and creating something new from it. It’s a simple concept that could have profound implications for businesses, especially considering consumers’ and investors’ rising expectations for sustainable practices and products.

At the same time, rising costs are eating into bottom lines and businesses feel pressured to balance demanding sustainability goals with the pressures of operational efficiency. The day-to day realities of running a facility mean that waste management often defaults to the path of least resistance: paying someone to make it disappear.

However, this approach overlooks a massive opportunity. By embracing circularity, businesses can do more than just comply with regulations or satisfy stakeholders. They can fundamentally change the financial equation of waste management by turning an operational drain into a strategic asset.

Rethink recycling with digital tools
Changing the approach to managing recyclables begins by knowing what they are worth. Until recently, a facility manager had no easy way to determine that without hours of phone calls and complex negotiations. This lack of transparency made it almost impossible to justify the effort required to separate and prepare recyclables for market.

Today, technology is enabling data driven decisions. Digital tools are providing unprecedented pricing transparency and streamlining operations for facility managers. In five minutes, a digital platform can provide an estimated value for trash, validating whether it’s worth the time to pursue recycling. In another five minutes, facility managers can submit a price request and get a firm offer for the material. This is a revolutionary shift that makes profitable recycling accessible to everyone.

Partnering to turn trash into treasure
Once a facility manager determines that their waste stream includes valuable recyclables, it’s time to extract that value. This is where partnerships become critical

A true recycling partner does more than just pick up the material. They will perform a waste audit, looking closely at what is going out and identifying more efficient, valuable options for handling it.

Consider working with a partner who has direct recycling mill relationships. When recyclables are sold to a low-level broker, the materials change hands multiple times before they become a new product. Working mill-direct, or with a large-scale trader, cuts out the middlemen and can ensure that the facility that generated the recyclable waste captures the maximum value for their fiber, metal, or plastics.

Furthermore, the right partner can guarantee the materials are recycled and provide data about where they went, validating sustainability claims to investors and customers. This knowledge also gives facility managers peace of mind knowing their trash was circulated back into the economy.

Benefiting the bottom line
How big a difference can recycling make to a facility’s bottom line? Even a small facility can achieve up to a six-figure swing on its profit and loss statement by effectively managing its recyclables. For a large distribution center or warehouse, the potential for cost savings and revenue generation can be substantially greater. This isn’t just about cost avoidance; it’s about unlocking entirely new revenue streams.

It’s time to stop viewing recycling as a compliance burden and start embracing it as a strategic opportunity. The perception that it’s too hard or not worth the effort is a relic of the past. Sustainability and profitability are not opposing forces. They are capable of supporting one another to create a stronger business.

Blake Gordon

Source https://cmmonline.com/articles/facilities-profit-when-tech-meets-trash