A group of independent smaller recycling companies set up to bid for national commercial waste contracts will be operational from 1 May.
The National Resource Consortium (NRC) is owned by its 12 founder members and shareholders, and was formed after an initial discussion in summer 2015.
As previously reported by MRW, the group aims to offer an alternative to the ”national monopoly” of large corporate waste management companies and small-scale broker operations in the UK.
The consortium aims to bid against large waste firms for national corporate accounts then distribute the work to local businesses that are unable to benefit from such geographical coverage.
Director Paul Jackson, who previously worked for Veolia and Suez UK (formerly Sita), was recruited to set up and run the consortium following investment in December.
The non-profit making contract management organisation hopes to get 50 “like-minded, entrepreneurial and high-performing” businesses involved through recommendations from current members.
Sources in the industry have told MRW that the operation is, in effect, brokering, but this is denied by NRC.
Jackson said members’ prices will be marked up by only the amount needed to cover operational costs, compared with a broker that would include a profit margin.
When its full network is in place, the group said it will achieve more than 65% recycling and above 90% landfill avoidance for its clients. Other benefits are said to be:
- experience gained from 80,000 customers including many blue-chip organisations
- more than 60 commercial waste MRFs
- 1,500 vehicles fitted with the latest technology
Its founding members are Mick George Ltd, Simply Waste Solutions, Countrystyle Recycling Ltd, Glazewing Ltd, JWS Waste and Recycling Ltd, Ward Recycling, Devon Contract Waste Ltd, Aspects Solutions Environmental Ltd, Premier Waste Recycling Ltd, Associated Waste Management Ltd, Weir Waste Ltd and 6two6 Ltd.
Each member has signed up to the NRC’s service agreement, and holds exclusive service rights to a specific post code area for the life of its membership.
Jackson, also a director of 6two6, told MRW this was a new concept.
“The service leaders in each local region are always the independents. They are faster to move, they have the best level of service, they are much more innovative. We’ve created a mechanism to bring them together and get that service to the customer quickly.
“We’ve got ownership by the membership companies and we are very different from what else is in the market, so we are keen to see how attractive that is.”
He added that the attraction for NRC’s members was that it allows them to “get a slice of the high street that they cannot at the moment because it’s in the hands of Biffa or Veolia or Suez”.
When the new group was announced on 6 April, NRC member Mick George told MRW: “We are strong advocates of supporting our local communities and building a better climate for businesses to operate alongside one another at the expense of the large corporate players, which have limited recognition or acknowledgement of what really matters to local residents.”
Environmental Services Association (ESA) executive director Jacob Hayler said: ”The ESA’s membership includes companies both large and small, all of which are used to operating within an extremely competitive market on a local, regional and national basis.
”The success of these companies is due to continuously delivering the best and most cost-efficient service possible, which is demonstrated by winning and retaining waste collection contracts with satisfied customers.
”As long as any new company or organisation operates within the competition rules, ESA can only welcome new entrants to the market.”