99Plas considers how a sector that plays a crucial part in delivering the circular economy is coping in the current situation.
Extreme concerns have been voiced over the impact of the Coronavirus on business operations and supply chains around the world, and the plastics recycling industry is no exception.
Social distancing instructions, the closure of non-essential businesses, and the cancellation of sporting and leisure events have turned life upon its head. The normal rules most definitely do not apply.
However, despite these difficulties, we cannot lose sight of the importance of maintaining plastic recycling levels and material flow to provide essential secondary resources for manufacturers. But why at this time of great change and turmoil in our everyday lives should we care about plastics recycling?
Across Europe, some 30 million tonnes of plastic waste is collected every year. Of this total 33% is subsequently recycled, 42% sent for energy recovery, and 25% landfilled. Put this another way, every year over 22 million tonnes of waste plastic finds a second use and thus prevents over 22 million tonnes of virgin resource from being consumed. Over 40% of plastic consumption is for packaging applications. With the need to sustain food, drink, and medical supplies the availability of material is, therefore, more important than ever.
The UK Government has recognized the importance of our sector by granting employees in the waste and recycling industry key worker status, meaning companies can, in theory, continue to operate. However, this is not to say maintaining an ongoing business is easy, and the sector faces numerous challenges.
Staffing issues. Maintaining the recommended 2-meter spacing is a challenge in any workplace. Although not insurmountable it does make for a more difficult and less efficient working environment. Keyworker status does not prevent employees from contracting the virus. As we reach the peak of the pandemic it is inevitable that more workers will fall ill and will have to self-isolate. We also must be conscious of the fact that notwithstanding their own health, employees may have childcare and family issues to contend with.
Declining volumes. Despite an increase in waste arisings from the food retail sector in the wake of consumer stock-pilling, the pandemic has resulted in overall waste arisings falling because of the business closures and social changes.
Based on the responses of a cross-section of their processor, recycler, raw material supplier, and equipment supplier members, the British Plastics Federation (BPF) published a survey of the effects of the Coronavirus on the UK plastics industry. This is an interesting barometer of the state of the nation. 79% of respondents anticipated a reduction in their turnover over the next six months. Of the 7% who predicted an increase in turnover, 80% were companies involved in the production of packaging.
Similarly, a report published on 1st April, Tolvik Consulting predicted a potential fall in residual commercial and industrial waste of just under 50% in the immediate short term. This is offset by a potential 13% increase in household waste arisings due to increased online shopping and more DIY, gardening and decluttering activities with people being confined to home.
Reduced demand from end markets. In a circular economy, a decline in consumption will inevitably lead to a reduction in manufacturing quantities and hence the amount of material required. In the BPF survey, 98% of the respondents expressed concerns regarding the impact of the coronavirus upon their business operations over the next 6 months.
Despite these difficult and unprecedented times, the digital 99Plas trading platform remains open for business. We have employee and client safeguards in place and can continue to facilitate the sale and purchase of your plastic waste.
If you haven’t already done so, please visit www.99plas.com to register on the platform.
In the meantime, please remember the advice to stay at home wherever possible. Protect the NHS. Save lives.