Rethinking Recycling
Plastic recycling, though relatively young, is very traditional in its ways. There are a few simple elements — supply chain, processing, delivery-usage — that see surprisingly little variation, even across diverse contexts and motivations. However, one concept continues to gnaw at me — it’s just that good: it refuses to be ignored.
Simply, the people who buy recycled plastic material tend to be plastic manufacturers that 1) are having credit problems and cannot finance the purchase of virgin (non-recycled) raw material or 2) use recycled plastic to make products where quality is not paramount (recycled plastic is notorious for its inconsistancy).
It seems to me, then, that plastic recycling can be reinvented as a financial services business. Specifically, the plastic recycler grants a line of credit (or loan) to the manufacturer which is paid in recycled plastic material in lieu of cash. The manfacturer can then focus solely upon manufacturing and, after selling the end product, can begin repayment with interest — an easy effort when you combine good repayment terms with profitability. Hence, the plastic recycler is invested in the health of both businesses, which, in turn, should enhance profitability for both parties (the recycler can buy plastic waste from the manufacturer at reduced fees via contractual stipulation and manufacturer is assured better support from the recycler as profitability becomes essential).
It seems like an obvious way to make an extra 6% a month; best of all, the recycler will finally have some leverage over the manufacturer in plastic bag production.