Why a Market-Based Tire Recycling System Shouldn’t Be Scrapped

March 12, 2019

March 12, 2019


This guest blog is courtesy of Paul Arellano.


Tire recycling is a mixed industry. There are government regulations that determine how to legally dispose of used tires, yet the system is still largely market-based. There are some who favor greater government control of the tire recycling industry. While it’s true that government regulation is a necessity, a market-based system shouldn’t be scrapped entirely.


Pros and Cons of a Market-Based System


Although a market-based system has its benefits, there is no doubt this industry would look very different without government involvement. Many businesses and individuals would probably choose not to recycle, but rather dispose of their tires in a landfill if there were no penalties for doing so. There might be less of a demand for rubber in the civil engineering industry if the government did not award tire recycling grants.


The current system has seen great success, however, and greater government regulation may not be necessary.


A 90% Success Rate


In any recycling effort, a 90% success rate is cause for celebration. The recycling programs in the state of Maine and the City of San Francisco serve as two shining examples. Maine’s 90% success rate for beverage reclamation is lauded as an industry benchmark. In San Francisco, the city’s 80% diversion rate frequently garners praise.


The recycling rate for the scrap tire industry is particularly impressive when one considers that anything metal typically enjoys a more mature recycling market than that of non-metallic recyclables.


It’s worth noting that U.S. laws have largely taken a hands-off approach to requiring vehicle or home appliance manufacturers to finance the recycling costs of their products. This is because the recycling markets within these industries continue to thrive without product stewardship laws, just as the recycling markets for scrap tires do.


Pros and Cons of a Government-Controlled System


Government regulation increases the demand for tire recycling services and tire-derived products. It incentivizes proper disposal of tires and protects the environment. A system entirely controlled by the government, however, would ultimately be detrimental.


Well-intentioned lawmakers often meddle with a well-functioning system in an effort to make it work even more efficiently. The effect can be deleterious, to say the least. Take, for example, Connecticut Senate Bill 869, which would explore the benefits of establishing licenses or permits for tire haulers, along with developing a new stewardship program. This program would force tire producers to increase prices to cover the end-of-life costs associated with the disposal of their products.


In its support of SB 869, the Connecticut Recyclers Coalition (CRC) points out that it has supported other producer responsibility efforts in the areas of e-waste, paint, and mattresses, and each of those programs have resulted in significant savings for taxpayers and municipalities.


While it is difficult to argue with the successes the CRC identifies regarding paint, electronic waste, and mattresses, scrap tires shouldn’t necessarily be brought under the same umbrella.


The TIA Weighs In


In its written testimony to the Connecticut Senate Environment Committee, the Tire Industry Association (TIA) writes: “Based on the knowledge we have from within the industry, the shared responsibility approach to scrap tire management has been very successful in the United States.”


Continuing this line of discussion, the TIA elaborates:

“The free-market based shared responsibility approach has established a successful, stable scrap tire management infrastructure, regulated by state laws governing tire hauling, storage, processing and end-use markets to ensure the system is properly maintained and operated.”


A Self-Governing and Self-Sustaining Industry


The tire recycling industry has taken great care to clean up its act and its image. Technology has assisted this effort tremendously.



This is not to say, of course, that the scrap tire industry hasn’t been helped by state and local laws regulating tire hauling, storage and processing. It has. The difference is that these regulatory efforts have worked in concert with the industry. Additional legislation like Connecticut SB 869, by contrast, would disrupt the industry by adding unnecessary layers of bureaucracy, increasing costs without adding appreciable benefits, and creating barriers to a system already known for innovation and efficiency.


Paul Arellano is the Sales & Marketing Manager at Lakin Tire, a tire recycling company that was founded in 1918—its motto—giving new life to old tires through creative thinking, innovative recycling processes and optimized scrap-tire management.


NERC welcomes Guest Blog submissions. To inquire about submitting articles contact Lynn Rubinstein. Disclaimer: Guest blogs represent the opinion of the writers and may not reflect the policy or position of the Northeast Recycling Council, Inc.

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Many of these bales are sent to Pakistan and Malaysia, where workers are trained to manually sort each piece to separate quality clothing for resale while diverting lower-quality textiles for other uses. Stosch described this process as extremely labor-intensive, requiring long hours of standing and sorting through items, and noted that there is a cap on how much textiles can be handled this way due to the time involved. From there, many clothes intended for resale are shipped to countries in Africa, the Caribbean, and Central America. Over 1.5 billion people globally depend on secondhand clothing, she said, particularly as an alternative to low-quality fast fashion brands. Guatemala has a notably strong secondhand import market, she added. A 2025 study by Full Cycle Resource found that the country imported 290 million pounds of clothing in 2023 and reused more than 91% of it, with women-owned clothing stores accounting for over half of the industry. Complex Streams, Complex Recycling Options When clothing or textiles are too worn or unfit for further wear and have already been downgraded to rags or industrial cloth, recycling becomes one of the next best options. This is where a fresh set of difficulties emerges, said Katarina Goodge, a materials research engineer at NIST. Textiles represent a complex and challenging waste stream to sort, partly because no established standards exist for handling these materials today, she said. Establishing standards would help boost efficiency in this system, she added. Another issue is that textile sorting is predominantly done manually, unlike other recycled materials that can be quickly sorted using various AI-enabled robotic sorting technologies, Goodge noted. One reason manual sorting remains standard is the difficulty in determining a garment's exact composition. Goodge explained that knowing the fiber content is essential to know how to recycle a garment, but the tag inside might only state it is made of 95% rayon and 5% other, or an itchy tag might be completely removed. She emphasized the need for a more systematic and technological approach, and noted that technology is advancing. Handheld near-infrared devices can reveal a garment's material composition, and when combined with AI or machine learning models, identifying fiber contents can become faster and more efficient. A handheld NIR scanner could be used alongside manual sorting to direct garments into appropriate bins, Goodge said, and larger-scale systems might identify textiles while on a conveyor belt, with a robotic arm component to pick out specific items. In the U.S., textile recycling infrastructure is less common than curbside recycling systems, though some companies have invested in such technology in recent years. 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