Getting started…with scrap

AZEK began its recycling journey in 2018, with an initial development of recycled material formulations and investments to upgrade manufacturing lines. In order to be able to accelerate its use of recycled material, AZEK first had to figure out how to source and collect all that scrap. The challenge was not in using it, but in sourcing it. The company’s strategy that focuses on sourcing, collecting and recycling three primary materials for recycling back into its manufacturing line: polyethylene, polyvinyl chloride (PVC) and wood flour. Sourcing recycled polyethylene and recycled wood flour had more established networks, while PVC proved to be modestly more challenging. One source for recycled PVC that AZEK was looking to explore was the scrap and waste generated from PVC-based building materials used in new construction and remodeling projects that would otherwise end up in landfills. With a diverse base of customers including distributors, dealers, contractors, and lumber yards across the United States, AZEK had multiple points of potential PVC collection but zero infrastructure at the state or municipality levels to tap into.

AZEK calls the strategy FULL-CIRCLE™

On the ground, collecting PVC scraps required partnering with AZEK’s strong network of distributors and contractors to participate and made it easy and efficient to drop off. So first, AZEK set up collection bins and established collection points along its value chain, including contractors, builders, dealers and distributors. Convenient, collapsible and storable 15-square-foot bins were delivered to AZEK’s participating distributors strategically located in popular PVC markets throughout the U.S., who then provided them to their key lumber yard customers for scrap collection. Lumber yards can either house the bins at their yard for contractors to collectively recycle their PVC scrap material or the bins can be provided to a contractor to fill them up on their jobsite. Once full, the lumber yard partner will pick up the bin from the jobsite and bring it back to their yard for pickup by the distributor. Once the distributor has aggregated enough bins for efficiency, AZEK will pick up and deliver the full bins to its PVC recycling facility in Ashland, OH.

Making takeback sensible

It’s a sustainable, full circle product lifecycle process that helps every participant in the supply chain either gain efficiency, valuable raw material and/or operational savings, and reduce their environmental impact. As for logistics, with AZEK already sending materials to its distributors, now the return journey can include bringing scrap PVC bins to Ashland to form a continuous loop. The PVC scraps are then processed to allow them to be used by AZEK’s plants for new products, including its TimberTech® AZEK®decking line made from approximately 50% recycled content. In 2020, AZEK used approximately 400 million pounds of recycled product, including primarily recycled polyethylene, recycled PVC and recycled wood flour. That was up from approximately 290 million pounds in 2019.

Ryan Manley, Business Development Manager, who joined AZEK in 2021 to help roll out FULL-CIRCLE™ with the company’s contractors and business partners, says the program is helping pave the way to a more efficient and sustainable future for their industry. “We’re working with our entire value chain. Our program helps contractors cut disposal costs and keeps PVC out of landfill. It’s a win-win,” he says. His hope: that this entire value chain approach can disrupt the plastic waste paradigm meaningfully as AZEK continues to scale up collection and processing en route to 2026.

Faster and first

The team is aware that doing things right isn’t enough. They must do it faster, more efficiently and first, given the fragmented and disparate supply chain and associated logistics. With the recycling industry starting to pick up momentum, Manley knows that first in class will require more than what they have accomplished thus far. “We’ve had some great early wins. We have generated a lot of excitement in seven short months since formally launching FULL-CIRCLE. We’re already shifting from outbound network building, marketing and relationship building to fielding incoming requests from distributors and lumber yards for our collection bins,” he says, adding, “They want in!”

In other words, to create goods that do good, AZEK must inspire its entire value chain to participate – and this is where, according to Manley, economics will eventually win the market. “Our products are aesthetically beautiful, natural-looking and help change the perception that recycled products are sub- quality or sub-par or plain ugly. And they help divert waste from landfill to create products with a lower carbon footprint that can last 50+ years and then can be reclaimed and recycled at the end of their life as well,” he says

Historically, recycled products have been viewed as inferior to virgin plastic and AZEK is positioning its products as just as good if not better. For the AZEK team, FULL-CIRCLE is clearly a company-wide mission with all hands on deck. “This is about the heartbeat of our organization. We’re working across business units and regions. We’re educating our supply chain and making it as easy as possible for them to participate,” offers Ryan. The fact is: there is limited infrastructure for recycling PVC in the United States and AZEK is innovating in the industry as they invest and expand the network. The greater the awareness, enthusiasm and operational savings, the more quickly FULL-CIRCLE™ will scale.

Put simply, a humble recycling program has today become a key aspect of AZEK’s business strategy. FULL-CIRCLE™ is ambitious, industry leading and potentially disruptive for the market if it continues to scale as the company expects it to. While the last seven months have been promising, Ryan knows the next six will be harder as the company expands its networks beyond the naturally sustainably-minded distribution partners. As AZEK heads out West to add more connection points along its value chain, the mood is one of optimism and excitement. Leadership takes courage and investments, and AZEK is all in.