The Times-Picayune:
As local governments shelved their recycling programs after Hurricane Katrina, declaring them a luxury for better times, David McDonough and Steven O’Connor saw a business opportunity among the thousands of residents who cringed at having to send all their waste into a landfill.
The pair ratcheted up a small commercial recycling business and began collecting bottles, cans, newspapers and cardboard in residential areas just under a year ago. Through their Web site and a handful of postings in local coffee shops, they have managed to grow their customer base to 3,300 and hope to expand to the north shore soon.
But just as Phoenix Recycling gains a toehold, both the city and Jefferson Parish are preparing to restart their municipal recycling programs. Winning a public contract would position Phoenix to grow its small stable of employees and expand its humble fleet - one balky garbage truck and a few rented U-Hauls - but losing out to a large, well-entrenched regional firm could spell its sunset.
Jefferson plans to seek bids for recycling services in the next few months, and New Orleans is wrapping up a survey in which it asked residents how much they would be willing to pay for curbside pickup. The City Council has set aside $500,000 for a pilot recycling program, though it is not clear how long that money will last or whether the city can afford to renew the funding once it runs out.
To prepare for the possible loss of residential customers, McDonough and O’Connor are trying to build up the commercial side of their business. They now collect paper from about two dozen corporate clients and hope to diversify with services such as paper shredding.
For now, Phoenix manages to turn a modest profit. The company takes newspapers and office paper to two local recycling plants, but it has to transport aluminum, glass and other material to Baton Rouge. The long-distance drives, combined with the recent spike in gas prices, have suppressed the company’s earnings.
Photo: Susan Poag / The Times-Picayune.
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