A new report shows the economic impact of the recycling industry in South Carolina has doubled since 2006, bringing a $13 billion surge to the Palmetto State’s annual economy.
An update from a similar study conducted eight years ago and compiled by Dr. Frank Hefner, the economic impact report measured the contributions of recycling through a combination of direct survey data from recycling companies as well as economic modeling through IMPLAN.
Since the 2006 report was released, the total economic impact of recycling activities grew nearly 5 percent annually to double its effect, impacting 44 percent more jobs statewide.
South Carolina’s recycling industry expects additional growth in 2014, and nearly 64 percent of survey respondents indicated they were planning to expand with an average of 3.5 employees each, or approximately 1,162 new employees added to payrolls. The average annual growth rate predicted for the industry is 19 percent.
Many recognize the environmental benefit of recycling, and the report shows the strong connection between recycling and business, said Secretary of Commerce Bobby Hitt.
As the business agency for South Carolina, Commerce will continue to provide support for the more than 500 companies in the state that are engaged in recycling activities and making sizeable contributions to the state’s economy, he said.
Along with recycling’s increasing impact to the state’s economy, participation in recycling is also growing. South Carolina’s recycling rate increased to 31 percent in 2013 from 22 percent in 2009, with each resident averaging 1.59 pounds of recycling per day.
Last year, South Carolina recycled almost 600 pounds per person, said Catherine Templeton, director of SCDHEC.
The number is growing thanks to the grass-roots dedication of local governments in partnership with DHEC, she said. As a result, local governments saved more than $53 million in disposal costs last year alone and have earned more than $67 million in the last four years.
Up 54 percent from 340 firms in 2006, the Department of Commerce maintains a directory of businesses engaged in recycling activities and identifies 524 firms in 2014. These companies include collectors, haulers, processors, end-users and exporters. Since 2006, the state’s recycling industry has announced more than $4.63 billion in new investment.
Companies within industry clusters come together to increase efficiency and innovation within that industry, while boosting the overall economy in their region, said Laura McKinney, executive director of New Carolina.
Dr. Hefner’s report shows South Carolina’s recycling cluster has dramatically increased the impact of recycling on the state’s economy since coming together, she said.
Of the more than 520 recycling firms in the state, the number of personnel ranges from one to 577 employees. The average number of employees per company is 63, while the median number of employees is 14. Additionally, the average payroll per employee in the industry is $40,203, above the average wage in South Carolina of $38,700.
The updated report was commissioned through a partnership between the South Carolina Department of Commerce, the South Carolina Department of Health and Environmental Control (SCDHEC), New Carolina and RecyclonomicsSC, a nonprofit organization that promotes recycling as a way to improve the economy.
The 2014 report’s key findings reveal that recycling contributes:
- $13 billion in total economic impact – double the impact of $6.5 billion in 2006
- 54,121 jobs, up 44 percent from 37,440 impacted jobs eight years ago
- $2.7 billion in labor income, up 80 percent from the 2006 report
- $329 million in state and local taxes
