Report: Recycling Industry Offers Recession Proof Investing
Between record high oil prices, the volatile stock market and a recession, it's a tough time to be an investor. But there's a little known bright spot on the market that actually benefits from high oil prices - the Recycling Industry.
In fact, the Recycling Industry offers investors one of the few ways to profit during the current recession, according to a report released by Progressive Investor, "Investing in Recycling."
"Ever escalating energy prices, commodity price inflation and scarcity, and global environmental concerns have coalesced into a "perfect storm" for the industry," says Eric Prouty, Senior Energy Analyst, Cannacord Adams.
Many people aren't aware of the central role the recycling industry plays these days. It has become a backbone of our economy, pulling in $236 billion in revenues last year and employing over a million people. The industry accounted for about 2% the U.S. gross domestic product in 2007.
At the current rate of resource depletion, especially from emerging economies like China, the world literally can no longer satisfy demand for paper and steel from virgin materials alone. Recycling has become an absolute necessity for industrial growth and stability. We couldn't print a newspaper, build a car, or ship a product in a cardboard box without recycled materials.
"Although we usually think of the benefits of recycling as reducing waste and protecting forests and habitats from mining and clearcutting," says Rona Fried, editor of Progressive Investor, "it is also a key solution for climate change. Making new materials from old ones is a classic example of energy efficiency - it vastly reduces the amount of energy (and resulting emissions) required to support our economy."
For example, making aluminum from scrap uses 96% less energy than from virgin minerals, while making iron and steel from scrap requires 74% less energy. Two thirds of the steel produced in U.S. is now made from recycled materials.
Progressive Investor identifies the following trends benefiting the Recycling Industry:
The report profiles the World's Top Recycling Stocks, including:
Investing in Recycling is a succinct overview of the industry and the major opportunities for investors on the publicly traded and private equity sides.
The sections are:
The State of the Recycling Industry
The Recycling Investment Landscape
Meet the Recycling Leaders
Analyst Conversation: Investing in Recycling
Recycling Industry Charts & Tables
The contributing analysts are:
Eric Prouty, Senior Analyst, Cannacord Adams
Matt Patksy, Managing Director, Winslow Asset Management
Jon Forster, Investment Manager, Impax Asset Management
About Progressive Investor
Progressive Investor is a monthly newsletter that guides investors and analysts toward green investments. Published by SustainableBusiness.com, it covers all green business sectors, including renewable energy, green building and healthy lifestyle.