Showing posts with label surplus. Show all posts
Showing posts with label surplus. Show all posts

Why All Good Recyclers are Exporters.

There are many good recyclers, and we are all exporters. 
The purpose of certification is to "out" the liars, not to debate the outliers. 


During the past week (blogs below), I've written several essays concerning marketing themes which are "attacking the category".
Negative campaigning, also known more colloquially as "mudslinging", is trying to win an advantage by referring to negative aspects of an opponent or of a policy rather than emphasizing one's own positive attributes or preferred policies. In the broadest sense, the term covers any rhetoric in which one refers to one's opponent in an ad hominem manner. [ wikipedia 2012.02.08]
Negative imagery of competitors' export practices probably accounts for "80% of advertising" for ewaste recyclers (a statistic I just manufactured... see how easy it is for Americans to make things - up?)

Export policy is important, it does matter.  Below are five distinct export categories, and the niches they serve.   How we manage and certify the first four will help us all to control the 5th (see post "Ewaste Travel in Scrap Metal" 2010).   Mixing CRT glass and mercury bulbs into bales of scrap metal is one dumping problem, but ship captains stranded with cargo refused at port is another cause of the same "export for dumping" problem.   Basically, there are five ways for your "e-waste" to get from Here to There.

FIVE CATEGORIES OF E-WASTE EXPORTS

1.  Export No Intact Unit Category:   Some of us feel safer exporting raw materials only, and market the "no intact unit" standard as an option.  These companies attract business from OEMs concerned with reuse (market cannabalization), counterfeiting, or the "grey markets" somewhere in between.  It's a legitimate recycling category.  These companies represent an excellent choice, for example, for an OEM with faulty parts taken back under warranty that they don't want redistributed.  These recyclers export bales of steel, plastic, copper, aluminum, and circuit boards, sold openly on the commodities market.  (slideshow of China's metal recycling companies, which buy shredded material for hand sorting - The Atlantic Monthly 2008)

2.  Export of Tested Working Category:   Some of us sell to retail markets, such as schools or direct retail shops, which are not in the repair business and are willing to pay more for something "fully functional" and "tested working".  The recyclers who sell to the direct-reuse market tend to wipe hard drives, reinstall MAR licenses, and do other things to ensure their exports are what the buyer ordered.  (Slideshow of Egyptian repair / direct reuse markets, 2008)

3.  Export for Repair and Refurbishing Category:   Within the remote corners (83% of the world), there are mind-blowing repair and remanufacturing companies.  Some of these began as contract manufacturers (e.g. CRT factories) and performed warranty repairs as well as assembly.  Some have turned to full-fledge cores refurbishers, creating thousands of jobs in emerging markets, taking back things like old CRT tubes or smallish LCDs and recutting and re-vamping them.  They make things like monitor-television-DVD combos, which are sold in vast quantities to people earning $3,000 per year, who cannot afford to buy all 3 separately.  They tend to be very picky, but not about things like 120 volt power supplies... whether the power supply works or not, it's getting replaced for sale in a 220 volt country.  It's a very legitimate category.  The fact they buy non-working power supplies as well as working power supplies is evidence that they are the opposite of primitive.  Slides of the factories I've visited are available here.

EWaste: Where We Go With What We Know? (AFRICA)

I'm an optimist about the future, not an apologist for the present.  Recoiling from poverty is not the same thing as compassion.  We have to get our hands dirty helping Africa, not just keep our consciences in shiny isolation.  
Scientific study, UN participation, interviews with importers and exporters, surveys by ISRI, mapping of transport by geographers, measure of display sale shipments, measure of growth of online access... in the past ten years we've learned a lot about electronic scrap recycling that we didn't know when "exporting harm" (NGO's first video) hit the circuit.

Some in the OECD* want us to think there are still too many unknowns to "risk trade" with surplus electronics overseas.   But with what we know, where do we go to make progress for the 83% of the world in "non-OECD" countries?



What happens to "E-Waste" In Africa?

 -    Most of the junk being burned by kids was in use for years, collected from offices and homes in Accra.

 -    Most of the money and jobs in the African recycling economy come from the added value of repair and refurbishing.  There are 30,000 technicians, only a few hundred "scrap boys".

 -    Most technicians prefer to work on electronics from rich people which they can resell and reuse.

 -    Most of the scrap boys have no other place to go except war, drugs, mining, and crime.

 -    Most end-of-life computers are hand-disassembled, which adds economic and environmental value -  
    stripped to the bone for reuse and parts potential, and every metal is graded and cleaned.

 -    Rich in Africa get new computers, middle class get used computers, the poor inherit the scrap.  The
       problem in the imagery poverty.  Poor won't get richer via economic isolation.


Who has the Supply of Electronic Scrap, surplus and waste in the USA?

 -    Most wealthy generators of technology are risk averse, won't risk to be accused  of dumping.

 -    Most wealthy generators of new technology buy new (upgrade) rather than repair and reuse.

 -    Most wealthy generators of new technology live in states which ban the export of used computers.

 -    Most recyclers of technology don't have time or experience in Africa.

 -    Most of the "worst e-waste" is processed in the USA, clean scrap value is sold on world markets.


What happens to surplus electronics in the USA?

 -    Most businesses who export to Africa don't get big contracts which ban export to Africa.

 -    Most Africans who buy from the USA don't buy from companies with big contracts in USA.

 -    Most containers of electronics, copiers, displays, unloaded in Africa are sourced from smaller e-waste
      businesses without the capacity to shred the bad and buy new.

 -    Most domestic reuse techs prefer first dibs on USA laptops, servers and computers.


What does Fair Trade Recycling do?

 -    Creates a trading window for big USA companies to sell their best stuff to African Techs.

 -    Gives wherewithal and incentives to Africans to adapt best recycling practices.

 -    Provides for 3rd party verification and mediation when best laid plans go wrong (containers tipped,
      demand changes, expectations aren't met).


Who Opposes Fair Trade Recycling?

 -    Companies which have invested millions in shredding and e-Stewards Standards.

 -    Refurbishers who see "tested working" as guarantee against competition from African Techs.

 -    New Manufacturers who see market cannibalization in reuse and refurbishing markets.

 -    Junk sellers who like the idea that "export is good" but don't want 3rd party verification and mediation.

 -    Dictators who want internet to be difficult and expensive, accessible only to the connected.

 -    Software companies with concerns about spread of unlicensed ware in unlicenseable nations.

 -    Legitimate E-Scrap Recyclers with concerns about an under-funded "certification" process.

How Do We Jump-Start Fair Trade Recycling?  (Suggestions wanted)


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* OECD = Obsessive Electronic Consumption and Demand Nations (tips hat to Slashdot submitter)