ARCA Recycling adapts to rocky recycling market through raised rates, new focuses

Dive Brief:

Minneapolis-based ARCA Recycling, a subsidiary of Appliance Recycling Centers of America, is fine-tuning contracts with utilities and manufacturers of appliances and electronics to change its focus to be less dependent on the flailing scrap metals market, as values have dropped 57% in two years. The company has also raised its rates as reported in Recycling Today.
Company focuses include ARCA’s ApplianceSmart participation in the EPA's Responsible Appliance Disposal (RAD) Program where large appliance retail chains and RAD members impose fees for recycling monitors, TVs, and some other appliances.
The company provides a full array of appliance-related services, including leveraging technology to refine traditional appliance recycling techniques and serving as the exclusive North American distributor for UNTHRA Recycling Technology. ARCA also invests in recycling centers that remove environmentally harmful materials and produce material byproducts for recycling for utilities, sells new appliances, and offers energy efficiency appliance replacement programs.

Dive Insight:

ARCA Recycling president Edward R. (Jack) Cameron is confident about the company’s adjusted and diverse focus and feels it is being well received.

"Utilities, manufacturers, retailers, and consumers are all realizing the landscape has changed dramatically, evidenced by many private and public recycling programs struggling financially. Sharing costs ensures the long-term viability of a recycling market that delivers important environmental benefits," he said to Recycling Today, adding the company’s strategic moves have lessened its dependency on metals markets.

Overall, 2015 was not a strong year fiscally for the company with losses attributed largely to the hit to scrap metal, as is the case nationwide. Steel shipments into the U.S. have jumped, and the American Iron and Steel Institute (AISI) has advised the federal government to "address injurious import surges," ARCA Recycling said as reported in Recycling Today.

But for now, Cameron said, the company has been busy, especially with utility contracts.