Contractor’s Report
to CalRecycle
37
Market Category/Sub-
Categories
Barriers
All Categories
Economic
– A sustained weak economy has made consumers,
particularly local governments, hesitant or unable to complete
projects/purchase goods, weakening demand for many tire-derived
products and materials.
Economic
– Tire processor and TDP product manufacturing
businesses are at an economic disadvantage when competing against
older, larger, and more established incumbent products and materials
and low margins leave little funds for improving business capitalization
or extensive marketing campaigns. Similarly, TDP producers often
compete against low-cost imports.
Financial/Technical/Educational
– Some businesses lack expertise
regarding how to market their products, streamline operations, and
otherwise improve and expand their business.
Informational/Research/Outreach/Technical
– Some potential
consumers of tire-derived products have concerns regarding the
health, safety, and environmental impacts of TDPs and feedstocks.
There is a lack of information/awareness regarding best management
practices to mitigate potential impacts. Although CalRecycle’s support
studies have been completed regarding this issue relative to artificial
turf and mulch, some businesses surveyed indicate that this is still an
issue.
RAC
Civil Engineering
Financial
– There are a relatively small number of tire processors and
they are concentrated in population centers where tires are generated.
However, many project locations are in remote unpopulated areas
where freight costs are a disincentive to using materials from tires,
particularly considering current fuel costs. This is especially the case
for TDA and RAC.
RAC and Other Paving
Landfill Applications
Transportation-Related
Applications
Educational/Technical
– Local government specifiers and engineers
are not familiar with advantages of products and how to design/specify
projects.
Concluding Remarks
California’s waste tire recycling industry continues to be highly dynamic, with processors and
tire-derived product manufacturers adapting to changing markets and infrastructure. Indeed,
processors and tire-derived product manufacturers have proven highly resilient to date in the face
of pressures from expanding export demand, a weak economy and competitive pressures from
ground rubber and tire-derived product importers.
For the first time, export growth has combined with in-state market development successes to
push the California waste tire diversion rate over the 90 percent goal. However, some
stakeholders call for measuring diversion focused on “high value” recycling, excluding
alternative daily cover, tire-derived fuel, and exports from the calculation. By this measure,
California’s tire diversion rate in 2012 would have been 43.3 percent. SAIC projects the diversion
rate will soften in 2013, while the rate in 2014 and beyond will depend heavily on how trends
play out, especially in the export and ground rubber markets.
