Chantal Fryer

1
Chantal Fryer Senior Manager, Recycling Market
Development 10/16/2006
2
To improve the per capita income of all South
Carolinians in a manner that supports and
enhances a high quality of life.
3
The Economic Picture In South Carolina Is Strong!

• More people working, making more money,and
  spending more money.
• Tax revenues are up
• Sales tax revenues are up 7.8 YTD
• Individual withholdings are up 7.6 YTD
• Individual declarations, the taxes paid by most
  small businesses, are up 21.6 YTD
• Corporate withholding is up 36.5 YTD
• Through 06/30/2006

4
2005 A Record Year

• 2.66 billion in capital investment
• 12,370 jobs created
• 137 new deals
• 48 of announced investment was new start-ups
• 52 was existing industry expansions
• 43.9 of announced investment was in rural
  counties
• 45 higher average wage than the state per capita

5
2006 On Pace For Another Record Year

• 2.05 Billion in Capital Investment YTD
• 12,256 New Jobs YTD
• 98 New Deals
• 40.9 of Total Capital Investment is in Rural
  Counties
• 33.4 of Total Jobs are in Rural Areas
• 38.8 of New Deals are in Rural Counties
• Does not include Duke Energys 4 billion
  nuclear plant and 800 jobs announced for Cherokee
  County
• Through 9/30/2006

6
2006 YTD vs. 2005 YTD

• 26 more Deals in 2006
• 36 more Investment in 2006
• 73 more Jobs Created in 2006
• 64 more Rural Jobs in 2006

7
SCs Economy Is Robust!

• According to Wachovias second quarter 2006
  Regional Economic Review, South Carolinas Gross
  State Product grew 6.3 percent.
• Thats almost 4 percentage points higher than the
  national average which was only 2.5 percent.
• Thats 1 in growth in Southeast and 5th in US.
• South Carolinas economy is robust according to
  Mark Vitner, senior economist with Wachovia.

8
National Recognition

• 1 in the Nation for Direct Foreign
  Investmentper capita Organization for
  International Investment
• 1 Most Business Friendly State Pollina Group
• 1 Strongest State in Southeast for
  Manufacturing, Business Facility
• 5 State Workforce Training Program (CATT),
  Expansion Management
• 5 Most Dynamic States for Entrepreneurs,
  Entrepreneur Magazine

9
Manufacturing Challenges

• According to a survey sponsored by the National
  Association of Manufacturers, the biggest
  challenges besetting U.S. manufacturing are
• Energy, Production Costs, Skills Shortage
• Recycling saves energy, has positive
  environmental impact but is also about economic
  development, creating jobs, and building
  competitive industries.

10
Energy And Recycling

• Economic Impact of Recycling 6.5 billion
  economic impact in SC
• Smart Business Recycling It doesnt cost, it
  pays.
• REMEMBER many materials considered waste are
  really misplaced, tradable commodities with
  value.
• Significant savings reduction in waste disposal
  costs
• Reduced tonnage going to landfills
• Provides valuable resources and materials to
  recycling industry and manufacturers
• Creates jobs and investment in SC

11
Conducting A Waste Audit

• Areas to Review
• Offices
• Purchasing
• Shipping and Receiving
• Storage, Warehousing, Inventory
• Service Department
• Production Areas
• Maintenance and Engineering
• Janitorial
• Break Rooms and Cafeteria
• Restrooms
• Dumpsters and Disposal Areas

12
Shipping And Receiving

• Are they using wooden pallets, plastic pallets,
  reused pallets, slip sheets, stretch or shrink
  wrap, strapping, or rubber bands?
• Is merchandise rejected due to damage?
• Is dunnage, such as corrugated cardboard, film,
  pallets, paper, or Styrofoam peanuts, being
  recycled or reused?
• Are materials being shipped in and/or out using
  returnable totes?
• Are chemicals purchased in bulk or in totes?

13
Production Areas

• Inspect all waste receptacles for discarded
  materials. Take note of discards and their
  quantity.
• Talk to production workers and/or department
  managers to discuss materials and quantities
  discarded.
• Take note of manufacturing processes and discuss
  viability of changing process to reduce waste.

14
More Production Area Issues

• Is there a waste volume differential in other
  shifts?
• Is more raw material used in one shift as opposed
  to another?
• Are there standardized processes that can reduce
  waste or overuse of raw materials?
• How is the housekeeping in the production area?

15
Dumpsters And Disposal Areas

• Dumpster Dive perform a waste stream audit of
  materials disposed. The audit may be extensive
  or cursory, depending on the situation.
• How often are dumpsters and compactors serviced?
• Are pulls on a regular schedule or on a
  per-call basis?

16
Solid Waste Invoices

• Often not a high priority for the company
• Seen only by accounts payable
• Great spot to look for savings
• Things to look at
• Frequency of collection
• Weight per load
• Container type
• Number of containers

17
Commodity Marketing

• The SC Department of Commerce, Recycling Market
  Development Program provides an online Directory
  of Markets for Recyclable Materials. It is free
  to use at www.sccommerce.com/recycle.html
• The Markets Directory lists over 300 SC companies
  that take various commodities for recycling.

18
Commodity Marketing
19
Recycling Equipment

• Sales Tax Exemption for Recycling Equipment
  (grinders, balers, etc.)
• Application for Certificate DOR Form
• ST-10
• Commodities that are sorted and baled draw higher
  value than loose, mixed materials.

20
2006 Accomplishments

• Revised mission and reenergized Council
• Additional funding received for FY 2006-07 from
  DHEC to carry out program mission
• Economic Study completed 6.5 billion economic
  impact
• Write-ups in Greater Columbia Business Monthly,
  Charleston Regional Business Journal, EPA Region
  IV Fact Sheet (forthcoming). Featured on Your Day
  (public radio) and Andy Thomas Show
• Poly-America announcement on 10/10/2006. Will use
  recycled plastic in their liner and plastic bag
  products. Investing 100 million and creating 400
  jobs in rural Chester County.

21
Next Steps

• Formation of a Recycling Cluster
• Development of incentives for recycling
  businesses
• Development of a small grant program
• Research for emerging recycling areas to develop
  markets
• Work w/DHEC to increase recycling rates
• Continue assistance to new and existing
  businesses as well as technical assistance to
  business and industry for waste
  reduction/recycling assistance
• Expand online directory

22
Thank You

• Please visit our web site for more information
• www.sccommerce.com
• Chantal Fryer, Senior Mgr, Recycling Market
  Development Program
• cfryer_at_sccommerce.com
• 803-737-0477
• Tonya Lott, Mgr, Recycling Market Development
  Program
• tlott_at_sccommerce.com
• 803-737-0449