According to a new study conducted by John Dunham and Associates for the Institute of Scrap Recycling Industries (ISRI) recycling industry continues to drive the American economy. Other than contributing environmental benefits, the sector provides 531,500 jobs and an overall economic impact of nearly US$110 billion. The industry generates US$4.94 billion in state and local taxes and US$7.96 billion federal taxes.
“The recycling industry continues to power America’s manufacturing base, creating jobs, generating tax revenue, and proving valuable feedstock for new products,” said Joe Pickard, chief economist for ISRI.
“In the U.S., we continue to process more material into valuable commodities, seventy per cent of which is used right here by American manufacturers. With the innovation and new technologies coming online, this trend is expected to continue upward.”
In 2019, recycling and brokerage operations of the scrap industry in the U.S. supported 164,154 jobs. Additionally, 367,356 jobs are indirectly supported by the industry
“Most importantly, this study reinforces the strength and resiliency of the scrap recycling industry,” said Pickard. “Recycling has always been based on supply and demand. Yet, at no other time have there been such fluctuations in global market conditions and demand for the high-quality scrap produced by the U.S. The fact that the industry is responding to these outside forces, and remaining an economic force is a testament to its ability to adapt and a strong workforce.”
The $110 billion economic impact puts the recycling industry on par with the radio and television broadcasting, building services, and warehousing and storage industries. It includes the roughly $4.94 billion in state and local tax revenues generated along with another $7.96 billion federal taxes.
A full breakdown of the study is available including the economic impact of each commodity in the scrap market. It is to be noted that the U.S. imported 313,000 tonnes of aluminium scrap in H1 2019 and exported 944,000 tonnes of it, making it a net exporter of aluminium scrap. In H1 2019, recovered aluminium scrap contributed 35% of total aluminium supply in the U.S.
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