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International Association of Electronics Recyclers® Presidents Report Peter R. Muscanelli Double Tree Valley Resort Scottsdale Arizona May 13, 2004 A Vision for the Future “ After transformation- Let’s Soar!” Observations Increased awareness of the electronics recycling industry
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International Association of Electronics Recyclers®Presidents ReportPeter R. Muscanelli Double Tree Valley Resort Scottsdale Arizona May 13, 2004
Observations • Increased awareness of the electronics recycling industry • More recyclers with increasing capacity-world wide market • No generally accepted standards or certification process in place • Potential for industry to receive negative PR • 50 different states/50 different laws • Increased regulation/Increased expense • Need for continual improvement • Industry issues • Electronics recyclers or scrap recyclers
Increased awareness of the electronics recycling industry • The public • The business sector • Communities, municipalities, Governmental agencies • Entrepreneurs
More recyclers with increasing capacity worldwide market • More competition • Decreasing margins • Increased inefficiencies • No standards for monitoring start-ups
No generally accepted standards or certification process in place • IAER Certification • ISO Certification • OEM supplier qualifications • Government procurement guidelines • NGO checklists • Federal & State regulations
Potential for industry to receive negative PR • Without standards, or good EMS, will electronics recycling facilities become our next brown fields? • Warehouses of collected material by unregulated recyclers • Exporting to unsupervised markets (where will the next video come from?)
50 Different states/50 different laws • Without a Federal law, each state may enact a different version • ARF/recycling fee • What equipment will be covered by what law? • Increased regulation means increased expense and mistakes (KISS) • Regionalization will cause further expense
Industry regulation/Increased expense • Regulation increases paperwork, which increases time, which increases labor, which will increase expense overall to the recycler • Potential for misunderstanding different regulations with different requirements • Maintaining current understanding of different regulations will further add to the electronics recyclers liability and expense
Need for continual improvement • Electronics recyclers need to buy into the fact that as a growing and emerging industry the industries that they service are continually evaluating their efficiencies and overall improvement of their system • The need for continuous improvement must be achieved by raising the industry standards. Without industry standards regulation is inevitable • Continuing education of industry employees is essential to achieving this goal
Electronics recyclers or Scrap recyclers • They are related industries with similar goals with different strategy and tactics • Currently work together • Different levels of expertise in the fields • Different ways of processing materials • Different logistics and infrastructure • Similar customer base • Opportunity to maximize returns to both parties
Industry Issues • Awareness • Standards and best practices • Export • Labor (private, prison, export) • Legislative
Potential solutions • Strong EMS standards & certification accountability (downstream), with third party verification • Alliances within the industry • Strategic alliances with OEM’s • Continuing education through The International Electronics Recyclers Institute® (IERI) • Accurate industry data (bench mark how well we are meeting our goals)
IAER • Recognized industry trade association, 100+ members in 15 countries • Industry database (website – 60+ K hits/month) • Certification program, industry specific, third party audit • 2003 Industry Report - updated industry data • Electronics Recycling Summit® • IERI offering continuing educational opportunities • ERCN- Electronics Recycling Collaboration Network
ELECTRONICS RECYCLING INDUSTRY REPORT International Association of Electronics Recyclers Revised May 2004
For more information – including ordering, go to the web page at: http://www.iaer.org/communications/indreport.htm
CONTENTS of the IAER INDUSTRY REPORT • Industry Overview • Industry Study • IAER Industry Survey • IAER Research • IAER Overview • IAER Resources • Guide to Services & Programs • Industry Directory
ELECTRONICS RECYCLING INDUSTRY PROCESS MODEL • SOURCES/GENERATORS • Field Returns • Surplus • Trade-Ins • Obsolete/EOL OEMs USERS LEASCOs TRIAGE • ELECTRONICS RECYCLING • INDUSTRY SEGMENTS/OPERATIONS • Asset Management • Broker • Re-Use • De-Manufacturing • Parts Recovery • Materials Recovery • Materials Processing As-Is Repair Refurbish RESALE Scrap Equipment Disassembly Recover Parts Separate Materials RESALE Materials Shred, Grind, Separate Refine, Smelt, Melt, Pelletize Metals, Glass, Plastics Primary Materials Processors
ELECTRONICS RECYCLING PROCESSES Incoming computer equipment Disassembly operation Parts stocking Chip removal Photos courtesy of Fox Electronics
Electronics Shredding Operation Photos courtesy of United Recycling Industries
Metals Refining and Sampling Process Photos courtesy of Metech International
Respondents to IAER Survey NFPs OEMs Electronics Recyclers
Years in the Electronics Recycling Business >10 3-5 5-10 Number of years
Number of EmployeesInvolved in Electronics Recycling Operations >100 51-100 <10 21-50 10-20 Number of employees
Electronics Recycling Revenue Annual US$ (millions) >$10M <$1M $5-10M $1-5M
Total Volume of Electronics Processed Annual Volume in Pounds (millions) >20M <1M 10-20M 1-2M 5-10M 2-5M
ELECTRONICS RECYCLERS in the USA (data from IAER database) Number of Recyclers Not including OEMs & NFPs
HIGHLIGHTS from IAER SURVEY • Electronics recycling companies in the USA: over 400 • Employees: over 7000 • Annual Revenue: over $US 700 million • Annual Volumes processed: • over 1.5 billion pounds (750K tons) • including more than 40 million units of computer equipment • electronics recycling process yielded approximately 900 million pounds of recyclable materials
CHALLENGESfacing YOUR electronics recycling operations(from IAER Industry Survey) • Cost of operations • Markets for outputs • Sources of equipment • Prices for materials & parts • Capacity • Other
CHALLENGESfacing the electronics recycling INDUSTRY(from IAER Industry Survey) • Legislation/regulations • Consumer/residential electronics • Plastics recycling Logistics/transportation • Product take-back programs • Recycling technology • Other
TOTAL COMPUTERS SHIPPED in the USA (data from ITIC 4) Units – Millions
CONSUMER ELECTRONICS SHIPPED TO US RETAILERS Units- Millions (data from EPA 5)
ELECTRONICS PRODUCTS OWNED by AMERICAN CONSUMERS (data from CEA 6)
LIFE SPANS OF CONSUMER ELECTRONICS (from EPA 5) Years- range
CONSUMER ELECTRONICS OUTLOOK 10 Cumulative Volume – Billions of units Electronics scrapped by consumers 2 Electronics products owned by consumers 2010 2003
COMPUTER EQUIPMENT OUTLOOK 2.0 Cumulative Volume – Billions of units 1.5 Computer products scrapped 1.0 0.5 Computer products installed 2010 2003
HIGHLIGHTS from IAER RESEARCHOutlook to 2010 • Consumer electronics: • About 3 billion units will be scrapped • or an average of about 400 million units/year • Computer Equipment (from all sectors): • about one billion units will become potential scrap • or an average of more than 100 million units/year • Electronics Recycling Industry • to grow its capacity by a factor of 4 or 5
RECENT WASTE STREAM DATA FEDERAL DATA (EPA/Franklin Associates – 2001) • Total generation of consumer electronics waste in the U.S. municipal waste stream • Over 2 million tons per year • ~1.3% of total municipal waste stream • Less than 10% recovered for recycling STATE DATA (MN, PA, WI, OR, VT Studies: 2000-2002) • Consumer electronics represents an average of 1.7% of municipal waste stream
ITEMS COLLECTED in MUNICIPAL PROGRAMS (data from EPA 11) % by number of items
Material Composition of Consumer Electronics in Municipal Waste Stream (data from EPA 5) % by weight
Composition of Demanufactured Computer Equipment (data from UMass19) Plastics & Trash Wire Parts/Asm.
COST ELEMENTS of RECYCLING (data from Minnesota 12) % of total costs
Reuse of Electronics TVs Laptops Monitors Keyboards CPUs NERC Study - 2003
OBSERVATIONS • Electronics Recycling Industry has been driven by commercial sector • Consumer electronics have not been a factor in the market due to costs, value & logistics • Computer equipment comprises most of volumes currently recycled • Electronics recycling costs money - but also recovers value in products, parts & materials • Industry still emerging - fragmented, small Co’s, limited process technology & capital
IAER Web Site - http://www.iaer.org Email - Info@iaer.org