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Waste Tire Situations and Markets in California. Denise Kennedy, DK Enterprises CIWMB Waste Tire Forum Sacramento, California – March 9, 2006.

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waste tire situations and markets in california

Waste Tire Situations and Markets in California

Denise Kennedy, DK Enterprises

CIWMB Waste Tire Forum

Sacramento, California – March 9, 2006

tire and rubber recycling advisory council trrac and the tire industry association tia
Tire and Rubber Recycling Advisory Council (TRRAC) andthe Tire Industry Association (TIA)
  • Working group of recycling professionals
    • marketing, processing, collection, crumb rubber and

manufacturing

    • one government liaison and advisor to TRRAC/TIA
  • Represent 5000 members in the Tire Industry Association
    • tire dealers and retreaders
    • commercial and retail markets
    • recyclers and suppliers
  • TIA’s history of services include government representation; training, education and certification; educational seminars and workshops
tire and rubber recycling advisory council trrac
Tire and Rubber Recycling Advisory Council (TRRAC)
  • Mission: Ensure long term viability of tire and rubber recycling worldwide, while pursuing economic and environmental benefits
  • Goals: To address the unique needs of the rubber recycling segment of the international tire industry and
    • Promote the reuse and recovery of tires and tire derived materials
    • Increase marketability of rubber products and applications
    • Promote industry’s legislative, judicial and regulatory issues
    • Provide educational, training, and networking opportunities
tire and rubber recycling advisory council representatives
Tire and Rubber Recycling Advisory Council – Representatives
  • Charles Astafan Columbus McKinnon Florida
  • Doug Barr Barr Formulated Products Pennsylvania
  • David Forrester Tires Inc. of Florida Florida
  • Dick Gust Lakin Environmental Industries Illinois
  • Denise Kennedy DK Enterprises Sacramento
  • Allan Lassiter Virginia DEQ Virginia
  • Monte Niemi First State Tire Disposal Minnesota
  • Tom Secor Durable Corporate Ohio
  • Mary Sikora Recycling Research Virginia
marketplace march 2006
Marketplace – March 2006

RB Rubber Products

NW Rubber (Canada)

TD&R

WRW

WTP

Utah Tire Recyclers

WTP

TRI-C

WRW

Golden Scrap Tire

Shamrock

West Coast Rubber

Socal/NorCal Break

GreenMan

BAS

USMX

Lakin

McClanahan

TDF

CRM

CB Tyres

CRM

california statistics
California Statistics

US Census Bureau No. of Generators Haulers

2004 Population Counties W/ TPID’s W/Permits

Southern 21,378,000 10 5,950 799

Northern 14,425,800 46 6,250 387

Total CA 35,803,800 56 12,200 1,186

canvassing barriers in california
Canvassing Barriers in California

1

  • Different dynamics between northern and southern California
  • Geographic proximity does not mean tire and product availability
  • Shortage of facilities in southern California that have equipment and capacity to handle the quantity of tires that currently go to the landfills
canvassing barriers in california9
Canvassing Barriers in California

2

  • Tire processors compete with facilities and landfills that charge low tipping fees
  • Technology and markets must be supported by supply of tires
  • Subsidies by other states and countries influence collection, product and disposal
canvassing barriers in california10
Canvassing Barriers in California

3

  • Generators, facilities, and registered and unregistered haulers of scrap and used tires that bypass the regulated system impact pricing and market share
  • Overregulation penalizes the businesses that abide by regulation
  • Enforcement activity of the unregulated players is limited
canvassing barriers in california11
Canvassing Barriers in California

4

  • Difficult for many of the businesses to balance tire flow, seasonality, markets, and money
  • Insufficient and sustainable markets require overcoming market barriers
canvassing barriers in california12
Canvassing Barriers in California

5

  • Research and development may be cost prohibitive
  • Education, advertising and marketing campaigns may not be cost effective
  • The cost of processing, manufacturing, equipment, land, and facility expansion capabilities impact decision to build business
canvassing barriers in california13
Canvassing Barriers in California

6

  • Lack of industry standardizations impacts ability to expand technology and market development
    • Definitions and language
    • Industry weights and measurements (being prepared by the RMA & RCC)
    • Material Survey Data Sheet (MSDS)
    • Testing Certification
canvassing barriers in california14

7

Canvassing Barriers in California
  • Interstate transport is market driven and cannot be controlled or regulated by state or local government
  • Impact of tires and feedstock being imported and exported can effect the balance of markets
  • Industry wants confirmation of authenticity of origination using California tires in CIWMB grant process
canvassing barriers in california15
Canvassing Barriers in California

8

  • Rubberized Asphalt Concrete growth is limited by understanding, education, and dollars
  • Board to review the importance TDF plays in diverting 20% of the tire flow in California and impact if divert tires away from facilities
  • Storage requirements for long term civil engineering applications projects using TDA are not always feasible
canvassing barriers in california16
Canvassing Barriers in California

9

  • Business Issues:
    • Workman’s compensation
    • Other insurance costs
    • High energy costs
    • Low-cost overseas rivals
    • RCC and EPA – will these programs help or hinder growth in tire recycling
    • Air quality
    • Transportation costs
california waste tire activity
California Waste Tire Activity

1

  • Grants will influence amount of income to processor, manufacturer and/or supplier
  • Focus on expanding existing ground rubber markets
  • Focus on developing civil engineering projects
  • Support TDF markets as they will continue to grow on their own
california waste tire activity18
California Waste Tire Activity

2

  • Place more emphasis on research and development
  • Grant selection options in Five Year Plan
  • Utilize government programs to promote recycled materials including updating web pages
california waste tire activity19
California Waste Tire Activity

3

  • Companies buying other businesses
  • Jump start businesses with BAP
  • Provide business development, technical assistance, marketing assistance and product testing and certification
california waste tire activity20
California Waste Tire Activity

4

  • Utilize resources of the RMDZ
    • Provide technical assistance
    • Assist with marketing to state agencies
    • Promote recycled content
    • Assist with site location
    • Link businesses with public agencies
  • Utilize expertise of the RCC
slide21
Contact Information

Denise Kennedy

DK Enterprises

3323 Watt Avenue, Suite 298

Sacramento, CA 95821

PH: (916) 480-0443

FX: (916) 480-0386

MB: (916) 804-0931

[email protected]

www.DKEbusinesses.com

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