August 18, 2024

Maximizing P&L Benefits From Waste Recycling

As the paperboard packaging industry rebounds, opportunities to enhance profitability are becoming increasingly crucial in the second half of 2024 ahead. With containerboard demand on the rise and production up by 7% in Q2 2024 compared to last year, folding carton and corrugated packaging companies have a unique chance to boost their bottom line through smarter waste management. Mid America Paper Recycling (MAPR), a leader in the recycling industry for nearly a century, offers a strategic advantage for companies looking to optimize their profit and loss (P&L) statements this year.


At SuperCorrExpo 2024, MAPR will be showcasing its innovative Waste Audit program—a service designed to uncover the hidden value in recyclable waste streams. According to MAPR CEO Don Gaines, the program can make a significant impact on a company's P&L by increasing revenues and reducing costs associated with waste management.

The Financial Upside of Recycling

For CEOs, CFOs and financial decision-makers, the benefits of recycling extend well beyond environmental stewardship—they directly influence financial performance. The MAPR Waste Audit Survey is a key tool in identifying waste streams that hold untapped value, converting what many see as a cost center into a revenue generator. 


Revenue Growth: By analyzing waste streams such as pre-consumer paper, production and die-cutting trim, and corrugated paperboard, MAPR helps companies unlock additional revenue. Recyclable materials that were previously overlooked or undervalued can be sorted, reprocessed and sold at higher rates, boosting the top line. 


Cost Reduction: Waste management and disposal fees are often a significant line item in a manufacturing company’s budget. MAPR’s approach involves not only maximizing the value of recyclable materials but also minimizing the costs associated with their disposal. This can include reducing or even eliminating expenses for waste hauling, lowering landfill fees, and optimizing logistics to remove these materials—directly impacting the expense side of the P&L.

A CFO’s Perspective: Why Now?

In today’s highly competitive consumer packaging market, box manufacturer CFOs are under pressure to find innovative ways to improve financial performance. With the recent uptick in demand for OCC on an upward trajectory, there's no better time to re-evaluate recycling strategies. The benefits of doing so are multifaceted:


  1. Improved Margins: By increasing the revenue generated from recyclable waste and reducing disposal costs, companies can significantly improve their gross and operating margins. This can provide a competitive edge, particularly in consumer packaging industries where margins are tight.

  2. Enhanced Cash Flow: Effective recycling programs can improve cash flow by turning waste into a predictable revenue stream. This can be particularly beneficial in managing working capital and reducing the need for external financing in operations.

  3. Sustainability as a Financial Strategy: With growing investor and consumer focus on sustainability, companies that implement robust recycling programs can enhance their brand reputation, leading to increased sales and customer loyalty. This not only supports the top line but also positions the company favorably in the eyes of shareholders and potential investors.

  4. Risk Management: By reducing reliance on traditional waste disposal methods and embracing recycling, companies can mitigate the risks associated with fluctuating disposal costs and potential regulatory changes. This strategic foresight can prevent unexpected hits to the P&L.

Why MAPR’s Waste Audit is a Strategic Tool

MAPR’s Waste Audit Survey is more than just a recycling assessment—it’s a strategic tool that CFOs and plant operations leaders can use to drive continuous improvement in waste management practices. The survey establishes a baseline for current recycling operations, identifies inefficiencies, and offers actionable insights to enhance profitability.


At next month’s SuperCorrExpo 2024, MAPR’s presence at booth 1171 offers an excellent opportunity for packaging leaders and other financial leaders to explore how they can integrate these insights into their broader financial strategies. Gaines emphasizes, “Establishing a smart, continuously improving recycling program isn’t just good for the environment—it’s essential for a strong bottom line.”


In today’s economy, where every dollar counts, the path to better profitability begins with a simple, 10-minute Waste Audit Survey. For CFOs looking to drive financial performance, the time to act is now.


Click here to get started: https://www.midamericapaper.com/waste-reduction-audit

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For printing and packaging firms, floor space is a critical resource directly tied to productivity, safety, and profitability. Operating under typically tight profit margins, these companies cannot afford inefficiencies that hinder operations or add unnecessary costs. Yet, in many facilities, valuable floor space is wasted on scrap and trim waste from the paperboard manufacturing and converting process. Gaylords of loose material waiting to be processed and bales awaiting pickup can create bottlenecks, disrupt workflows, and eat into already slim margins. At Mid America Paper Recycling, we provide timely solutions to help manufacturers reclaim their floor space and protect their bottom line. Here’s how: The Hidden Costs of Wasted Floor Space Inefficient use of floor space doesn’t just limit operational effectiveness—it carries significant financial and operational consequences. Here’s what’s at stake: High Real Estate Costs : Manufacturing and warehouse space is expensive. According to Prologis, the annual cost for warehouse space averages $13.20 per square foot , including base rent and operating expenses. A facility dedicating 1,000 square feet to waste storage could incur $13,200 annually in avoidable costs. Safety Risks and Workplace Injuries : Cluttered floors with bins of loose material and stacked bales create hazards that increase the risk of workplace injuries. The National Safety Council reports that the average cost of a medically consulted workplace injury exceeds $40,000 , factoring in productivity losses, medical bills, and administrative expenses. Missed Revenue Opportunities : Every square foot dedicated to waste is a square foot unavailable for revenue-generating activities. For example, a production machine occupying 1,000 square feet could generate $100,000 to $500,000 annually in additional revenue. Increased Labor Costs : Managing waste on the plant floor is time-consuming. Employees spend hours moving, organizing, and handling waste instead of focusing on higher-value tasks. At an average wage of $20 per hour , one additional hour spent daily on waste management can cost a company $5,000 annually per employee . How Mid America Paper Recycling Reclaims Space Reclaiming floor space starts with understanding a facility’s unique challenges. Through our waste audit services , we identify inefficiencies in waste management handling practices in your plant facilities and provide customized solutions to optimize space utilization. Trailer Spotting: A Game-Changer for Floor Space One of the most effective strategies we offer printers and board converters is trailer spotting. Instead of storing waste on the plant floor, a dedicated trailer is stationed on-site to accumulate scrap and trim waste, and then rotated back to our recycling facility for materials processing. Maximizes Plant Space : By removing bales and scrap from the floor at key intervals, plants can free up hundreds or even thousands of square feet for production or finished goods storage. Improves Safety : Clear, clutter-free floors reduce the risk of accidents and ensure smoother workflows. Cuts Handling Costs : Employees spend less time managing waste, which translates to significant labor savings. Streamlines Operations : Trailers simplify the waste management process, ensuring efficient material handling and faster pickups. Faster Financial Return on Recyclables : By consolidating and efficiently managing scrap materials in a trailer, recyclables can be transported directly to mills more frequently. This reduces delays, accelerates payments, and ensures more consistent cash flow tied to a recycling program. For example, one large printing client reduced their reliance on floor space for bales by 50% , enabling them to install additional equipment and increase production capacity. Execution in Action At Mid America Paper Recycling, we deliver results through precise execution of recycling programs. Our Chicago-based facility processes 51 different paper grades using advanced baling systems and a fleet of 125 trailers in our logistics network. By leveraging our infrastructure and consulting expertise, we help customers reclaim floor space, reduce costs, and maximize profitability year after year. Partner with Mid America to Reclaim Your Space  For any packaging manufacturer, the value of floor space cannot be overstated. Don’t let waste take up space that could be driving your business forward. Let Mid America Paper Recycling help you optimize your operations, starting with a free waste audit to discover how we can help you unlock the hidden value in your facility.