2020 has been a very difficult year for many businesses, the waste industry has seen its share of difficulties too.
As we get ready for a busy 2021 we are wanted to share some key points in the industry that have had impacts on the industry.
The challenges we face
Those of you who follow our news stories and blogs will be aware of the difficulties the waste industry has been having – particularly with the export and disposal of materials.
There are significant cost pressures for all sorts of reasons:
- The implementation of Brexit and the resulting fall in the value of the pound.
- Obtaining clearance at customs has increased costs by as much as 2%.
- Minimum Living Wage costs have risen by 2.2%, on top of other inflation as demonstrated in the Retail Price Index.
- Our main disposal route for refuse-derived fuel (RDF) has been Scandinavia. The introduction of a carbon tax there increased costs by 2%-4% during 2020.
- Transitional relief on the Dutch RDF tax ended at the start of this year. This will mean higher costs during 2021.
- The recycled plastics market has had a turbulent year, with the demand for Packaging Recovery Notes (PRNs) driving up costs beyond anything anticipated by industry experts.
- In 2020 China stopped accepting wastepaper from the UK. This lowered the domestic prices paid for recyclable paper, reducing the income used to offset waste collection costs.
Our commitment to all our customers
At Flame UK, our customers come first. That’s why we always strive to offer the best possible value without compromising the quality of our services.
The waste industry applies price increases to waste disposal and transport rates once a year, on 1 April – co-ordinating with any rise in related Government taxes. Annual increases over the last five years have averaged 8.5%, but in the same period costs for Flame UK customers have risen by a more modest 5.2%.
This year, we’ve worked extra hard to absorb all the financial pressures I have described. As a result, we have been able to deliver some of the lowest cost services available in the industry and maintain the highest level of service.
For anyone of our readers who are not Flame UK customer or you’re buying services from elsewhere which Flame UK can provide (any aspect of our waste management, our energy and water management, or PAT testing), please have a conversation with us to see how we can help you make savings.
Whatever you need, we remain at your service and look forward to meeting new faces in 2021.