The national recession that's taking a bite out of floorcovering industries also is adversely affecting a national green initiative - carpet recycling, according to the latest report from an organization committed to recycling and reusing old carpet.
Carpet recyclers processed slightly more carpet tonnage in 2009 compared to 2008, but the figure remains below pre-recession levels, according to an industry study from Carpet America Recovery Effort, based in Dalton, Ga. The area is known as the Carpet Capital of the World
The percentage of discarded carpet that made it to recycling plants in 2009 remained low, at 4.2 percent, the report states.
"A lot of it was because of the down economy," said Georgina Sikorski, executive director of the Carpet America Recovery Effort.
Ms. Sikorski said she is pleased with where the numbers are, pointing out the slight growth in tonnage in 2009.
Companies such as Cycle-Tex, a recycler in Dalton, and Manchester, Tenn.-based Ravago Manufacturing Americas melt down industrial scraps and carpet removed from buildings to form plastic pellets in a process called compounding. The pellets are sold to plastics companies that use them to make products, primarily black, under-the-hood parts for cars.
Ray Hampton, vice president for Cycle-Tex, said the recession hit businesses like his from two angles: the downturn decreased the demand for plastic and cut short the supply of old carpet.
CARPET RECYCLED(In millions of pounds)2009: 2462008: 2432007: 2752006: 2322005: 1942004: 982003: 872002: 46Source: Carpet America Recovery Effort
"They didn't need the plastic to make those widgets," he said of the plastics companies. Cycle-Tex cut 50 jobs during the downturn, dropping the work force to 80.
Wayne Ballew, director of business development for recycled production for Ravago, said the drop in demand hurt his company more than anything.
"Anybody (who) says the recession didn't affect them is telling a half truth," he said. "When the suppliers' business went down it took the compounders with it."
The recession slammed the auto and housing industries, which carpet manufacturers supplied. Floorcovering producers are major employers in the region.
Mr. Hampton said manufacturers slowed down their production, meaning there were fewer industrial leftovers.
"I think it will pick back up when the economy picks back up," he said.
While both recycling executives shared rosier outlooks on 2010, Ms. Sikorski said she didn't have any idea what next year's report might hold.
"In this industry I don't think anyone wants to make forecasts," she said.
Carpet America Recovery Effort is a joint industry-government effort to boost carpet recycling and reuse and reduce the amount of carpet dumped in landfills, according to the organization's website.
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