EPA reports indicate e-waste is the fastest growing component of the solid waste stream. Similarly, the electronic equipment recovery and recycling industry might be the fastest growing business segment in the entire economy.

Like any high growth businesses clamoring to increase market reach, you are more likely to find e-scrap firms aggressively investing in building processing capacity than in cutting costs. New technology is being announced on a regular basis. Several new multi-million dollar shredding and separation plants in the United States and Canada are scheduled to come on-line in the next six months. Closer to home, the DNR awarded demonstration grants in November to Cascade Asset Management and Pro-Ex Extrusion for taking a plastics compounding technology for mixed engineered plastic computer housings from the research phase to large scale production.

Other firms are building their recycling capacity through acquisitions and partnerships. Recycle America Alliance recently struck service partner agreements with e-scrap firms in the Washington, Massachusetts and Virginia areas and beyond. The E-Scrap News reported in its October, 2005 magazine that 22 companies were planning new facilities or expansions in 2005.

At the same time, high fuel costs are adding significantly to the cost of handling equipment. Computers and TVs are bulky and expensive to ship. Many of these increased freight costs have been absorbed by the recyclers who can offset this increase with higher commodity values and increased operating efficiencies. If the value of scrap metals and plastics drops again, e-scrap processors will need to pay even more attention to driving costs down in operations and production in order to stay competitive.

As this industry matures, managing efficiencies and costs will become more important to e-scrap firms. Those companies that develop operational controls and "lean demanufacturing" processes now will be better positioned to emerge as leaders in the industry when they can't survive on growth alone.