Industry Drivers
The main factors that drive the industry are growth of end-markets and government support.
1. Government support
The scrap tire recycling industry relies on government support for growth. While government support has been instrumental in the growth of the industry, it is not consistent across states. Further, while 35 states collect tire fees, only 19 have incentives for end-markets and many states divert tire recycling funds for other purposes. With tire-derived fuel coming under increased scrutiny from environmentalist and conservationist groups, regulatory support for development of other end-markets is vital for the further development of the sector.
2. End-markets: The end-markets for scrap tire products in the US are the most developed in the world. The main end-markets for scrap tire products are tire-derived fuel, civil engineering applications, ground rubber, and punched and stamped products. The break-up of scrap tire use among these applications in 2003 as well as the historical development of the end-markets are shown below: