Managing Change Robert Race, Vice Chair Recyclatex
Introduction How we got here History Current Future
History
History
History Source – Lets Recycle.com (quoted mid price values)
Contributory factors in the rising value of recycled clothing 2004 – EU Expansion – 10 new countries joined UK – established industry British clothing considered to be ‘the best’ Government promotion of recycling
Current
Value £ £200.00 £250.00 £300.00 £350.00 £400.00 £450.00 £500.00 £550.00 Date Source: WRAP Materials Market Price Report (mid point values). 5-Oct-13 5-Nov-13 5-Dec-13 5-Jan-14 5-Feb-14 5-Mar-14 UK Charity Shop Grade Clothing 5-Apr-14 5-May-14 5-Jun-14 5-Jul-14 5-Aug-14 5-Sep-14 5-Oct-14 5-Nov-14 5-Dec-14 5-Jan-15 5-Feb-15 5-Mar-15 Current Market 5-Apr-15 5-May-15 5-Jun-15 5-Jul-15 5-Aug-15 5-Sep-15 5-Oct-15 5-Nov-15 5-Dec-15 5-Jan-16
Contributory factors Political instability in key markets – Ukraine, Sub-Saharan Africa Ebola 2014 East African Community (EAC) proposed ban February 2015 Difficulties in the Nigerian economy Reduced Quality of Material Charity shops extracting more value out of donated goods
Contributory factors – cont’d…
Contributory factors – cont’d…
Contributory factors – cont’d…
Contributory factors – cont’d…
Contributory factors – cont’d…
Contributory factors – cont’d…
Contributory factors – cont’d…
Contributory factors – cont’d… Cheap Chinese goods Strong Pound has made UK exports of used clothing more expensive Demand from Eastern Europe 23% of Textile Recycling Association (TRA) members went out of business since the start of 2013.
Global Perspective: USA market “Well, basically, the price of textiles has gone from…the number was 16 and a half cents down to two cents a pound. So when you take in all the other costs including keeping it somewhere and moving it around, it’s just not profitable anymore for the people we were working with to do it ,” Ellen Graham, the assistant store manager at Experienced Goods, which raises money for a hospice. Eric Stuben from the Secondary Materials And Recycled Textiles Association stated, the bottom just fell out of the recycled materials markets — including what the industry calls mixed institutional rags.
Global Perspective: Canadian Market
Global Perspective: German Market
Consequences and the Future
Consequences Values across all grades have declined since the start of 2014 Some charity shops now separating clothing and textiles Recyclers are reducing the size of their collection areas We are likely to see a continued decline in the number of Cash for Clothing operations We have seen a decline in theft of clothing and bogus charity activity
Future Recycling companies still under considerable strain Difficult trading conditions in Africa Nigerian economy Introduction of living wage in UK In/Out EU referendum vote Value of rags
Managing Change Use a Reliable collector Charity shop grade specification Make sure payments are correct and prompt Managing change
Thank you Contact: Vanessa Knowles vanessa@recyclatex.co.uk
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