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Rec, c~ Has Influenced the Economv The current economic downturn in the recycling industry parallels those of nearly every other industry worldwide including auto manufacturing, housing, construction, publishing, and consumer products. Although a downturn is never a great experience, one positive element of the economic slump this year is that it showed very clearly that the recycling industry has been completely integrated into the broader global economy. In the late 1980s and again in the 1990s the recycling industry suffered a different kind of economic downturn that lasted a year or less and market demand rebounded. These previous downturns were caused more because the recycling industry had not grown to the point where it was fully integrated into the larger manufacturing market. In those cases, gluts in the amount of material waiting to be recycled caused sharp and sudden price drops even though the overall economy was stable. Since that time we have all done work together to build recycling into a massive grassroots movement, particularly here in Minnesota where over 75% of the people participate. Manufacturers are also much more onboard and recognize the benefits of using recycled material in their products. What we began experiencing in 2008 and what continued into 2009 is an across the board, massive global slowdown in manufacturing and consumption. This phenomenon temporarily drove down the demand for the recyclable materials collected alongside with all other materials and products throughout the economy. Rather than rising and falling on a separate trend from the rest of the economy, recycling is now a full participant in the global economic market. This integration into the global economy actually strengthens the recycling industry as it shows that other larger manufacturing bases depend on recycling. Another way that the recycling industry has positively influenced the economy is through job creation. In Minnesota alone, the Minnesota Pollution Control Agency reports that the recycling industry creates 8,700 jobs directly but it is also responsible indirectly (as the "ripple effect") for an additional 19,000 jobs. In 2008 the industry brought in $93 million in state tax revenue and created $3.48 billion in gross estimated economic activity! Locally, the recycling industry provides green jobs which stimulate economic growth while caring for the environment. Eureka Recycling has created over 100 quality green collar jobs in the Twin Cities. Every employee of Eureka Recycling earns a living wage while making it possible for all of us to live a more environmentally beneficial lifestyle in our community. As a Twin Cities company, Eureka Recycling reinvests all of its proceeds back into the local economy through revenue share and by supporting local vendors and organizations whenever possible. Since 2001, Eureka Recycling has directly given over five million dollars to the communities we serve and continues to set the standard in Minnesota for giving back revenue from the sale of recyclable materials. The Economv Has Influenced Recycling The percentage of papers in the recycling stream as compared to containers has continued to shift for the third straight year. As fewer and fewer residents have newspaper and magazine subscriptions, and conversely, as more people stay at home to eat rather than dining out, the ratio of paper products to containers has changed. Furthermore, communities all over the country are facing the impacts on their recycling program from losing their local newspapers, whether it is a reality or a possibility. 3