Plastic recycling companies have a steady stream of raw material with a consistent demand for their services, and supplies for plastic recycling are relatively inexpensive. The recycling business has garnered a great deal of consumer attention due to growing consumer awareness of environmental issues and high energy costs. Plastic recycling companies require relatively low start up costs and often hire plastic scrap buyers on a contract basis to lower staffing costs.
Plastic scrap recycling businesses are often established in areas with low real estate value, and can easily adapt available warehouse space to suit their needs. The machinery for plastic scrap recycling is not very sophisticated and is low maintenance, which further reduces initial expenditures. Employee costs are low compared to similar businesses.
1. Contact several suppliers for plastic recycling companies to compare their operations and compare prices.
2. Get initial equipment for recycling plastic with at least 50 percent more plastic recycling capacity, to allow for business expansion.
3. Purchase equipment for your plastic recycling business from an experienced supplier.
Design your plastic recycling center to maximize output and minimize costsMeet the rising costs of transportation head-on and establish an efficient plastic recycling business. Success in this area is about more than recycling plastic bottles, recycling plastic bags and recycling plastic water bottles. Machinery for processing of all types of plastic products should be in the same location as shipping and collection, to reduce transportation-related expenses.
Plan the capacity of your plastic recycling business before buying any equipmentEquipment costs are second only to land during the initial phase of establishing a plastic recycling business. Based upon a three month projection estimate, the baseline capacity of your equipment needs and increase by 25 to 50 percent to factor in three years of 10 to 15 percent growth. Projecting growth into the costs of equipment purchase allows for a larger depreciation allowance and bigger business tax write-off.
Work with well established business enterprises when buying supplies for plastic recyclingThere are many overseas companies selling plastic recycling equipment, but many are simply purchasing agents and not actual suppliers. Established businesses have their own sales agents and can offer direct discounts to buyers. To get the best possible deal on equipment purchases for your plastic recycling company, you should work directly with an agent of the manufacturer.
- Find a region with a large population that has an unmet need for plastic recycling.