Analysts say many waste companies had historically viewed recycling as a “loss leader,” offering the service largely to win over a municipality’s garbage business. The recycling companies say they cannot depend on selling used plastic and paper at prices that cover their processing costs, so they are asking municipalities to pay significantly more for their recycling services. The higher recycling fees, analysts say, will help bolster the largest companies’ already booming businesses. Waste Management reported strong operating profits in 2018, while Republic reported increased revenue driven by its waste business. But at least some of the higher volume were recyclables that could not be sold and repurposed, analysts say.

Source: New York Times March 16, 2019 09:00 UTC