NexTrex® Grassroots Movement Proves a Sustainable Success Story
Rhea-AI Summary
Trex Company [NYSE:TREX] has achieved remarkable success with its NexTrex® Grassroots Movement, a plastic recycling initiative launched in August 2022. The program has seen a 227% increase in participation over two years, demonstrating its effectiveness in tackling plastic waste. NexTrex® works with various organizations to collect and recycle polyethylene (PE) plastic, which is then used to manufacture Trex® composite decking.
Key highlights:
- Over 70 drop-off locations established across the U.S.
- More than 3 million pounds of PE plastic waste recovered
- Trex upcycles 320 million pounds of recycled plastic annually
- 5 billion pounds of plastic diverted from landfills over three decades
The program's success is attributed to its ease of implementation and the company's commitment to sustainability, making it an attractive option for businesses, municipalities, and educational institutions seeking to responsibly manage plastic waste.
Positive
- 227% increase in NexTrex® Grassroots Movement participation over two years
- Over 70 drop-off locations established across the U.S.
- More than 3 million pounds of PE plastic waste recovered through the program
- Trex upcycles 320 million pounds of recycled plastic annually in its manufacturing process
- 5 billion pounds of plastic bags and film diverted from landfills over three decades
- Program provides a source of ongoing funding for partners through compensation for baled recyclable films
Negative
- None.
Insights
The NexTrex® Grassroots Movement's 227% growth in just two years is a remarkable achievement in plastic waste reduction. This initiative's success demonstrates a significant shift in consumer and organizational behavior towards sustainability. The program's ability to divert over 3 million pounds of PE plastic waste from landfills is substantial, contributing to circular economy principles.
The expansion to 70+ drop-off locations across the U.S. indicates growing public awareness and willingness to participate in plastic recycling efforts. This grassroots approach, engaging diverse stakeholders from businesses to educational institutions, creates a robust network for plastic waste collection, potentially leading to long-term behavioral changes in communities.
However, while impressive, the
Trex Company's [NYSE:TREX] NexTrex® initiative presents a compelling business model that aligns environmental sustainability with financial incentives. The program's 227% growth in two years suggests strong market demand and potential for continued expansion, which could positively impact Trex's revenue and market share in the composite decking industry.
The company's position as the world's largest manufacturer of wood-alternative decking, coupled with its innovative recycling program, creates a unique competitive advantage. By securing a steady supply of recycled materials through grassroots efforts, Trex potentially reduces raw material costs and supply chain vulnerabilities.
However, investors should consider the scalability challenges and potential costs associated with expanding the program. While the initiative contributes to Trex's positive ESG profile, which may attract environmentally conscious investors, its direct impact on the company's bottom line remains to be quantified in financial terms.
The success of the NexTrex® Grassroots Movement reflects a growing consumer trend towards eco-friendly products and sustainable practices. This aligns with the broader market shift where 64% of Americans are willing to pay more for sustainable products, according to a recent study.
The program's expansion to diverse sectors, including municipalities, educational institutions and businesses, indicates a wide-ranging market potential. This multi-sector approach could lead to increased brand visibility and loyalty for Trex, potentially translating to higher market share in the
However, the true test will be in the program's ability to scale nationally and maintain growth rates. While the 227% growth is impressive, sustaining such rates may become challenging as the program matures. The initiative's success could also attract competitors, potentially leading to market saturation in the recycled plastic decking segment.
Trex Company Plastic Recycling Initiative Achieves
WINCHESTER, Va., Aug. 21, 2024 (GLOBE NEWSWIRE) -- In a world increasingly focused on sustainability, Trex Company [NYSE:TREX] is committed to doing its part to tackle America’s growing plastic waste problem. Through the NexTrex® Grassroots Movement, Trex works together with eco-minded businesses, municipalities, educational institutions and other organizations across the country to responsibly dispose of polyethylene (PE) plastic waste and give it new life as beautiful, durable and environmentally friendly Trex® composite decking. Since launching in August of 2022, this collaborative recycling initiative has experienced tremendous growth with an impressive
“The growth we’ve seen over the past two years is a testament to the effectiveness and ease of the program and the commitment of our dedicated recycling partners,” said Stephanie Hicks, materials and recycling programs manager for Trex Company. “Our Grassroots Movement has made it easier than ever for communities and organizations to participate in recycling, helping to divert significant amounts of plastic waste from landfills by repurposing it into sustainable composite decking.”
NexTrex® is a nationwide material sourcing initiative for Trex, the world’s largest manufacturer of wood-alternative decking and railing, and a leading brand of outdoor living products. The company manufactures its world-famous composite decking from primarily recycled and reclaimed content, including a mix of industrial wood scrap and polyethylene (PE) plastic film, nearly all of which comes from post-consumer sources.
Bridging Trex’s award-winning community-based Recycling Challenge and large-scale Commercial Recycling Partnerships, the Grassroots Movement extends the benefits of Trex recycling to organizations that may not meet the volume criteria for the commercial program. Organizations approved for participation serve as drop-off locations where local community members can recycle PE plastic film materials that qualify to be recycled by Trex. These include everyday items such as grocery/retail bags, produce bags, sandwich bags, case overwrap from paper towels and toilet paper, newspaper sleeves, dry cleaner bags, bubble wrap and flexible shipping pouches. Partners can also recycle shrink wrap, pallet wrap, and other flexible plastic materials used in their operations. A full list of qualifying materials can be found at www.NexTrex.com.
“Because plastic film cannot be recycled in curbside bins with other recyclable materials, such as paper, cardboard and glass, the NexTrex program offers a simple way for consumers and organizations to responsibly dispose of plastic film waste,” explained Hicks.
The program’s ease of implementation is one of its key strengths. Participating organizations are equipped with all the necessary tools and support to effectively manage the collection and baling of plastic film. Once 20-40 bales are accumulated (20,000-40,000 pounds of plastic film), Trex picks up and transports the material to its manufacturing facilities in Virginia or Nevada, where it is used to produce high-performance, low-maintenance Trex composite decking. Trex then compensates partners for the baled recyclable films making participation a viable source of ongoing funding for business operations or community initiatives.
Since the inception of the Grassroots Movement in 2022, it has grown to over 70 drop-off locations throughout the U.S., including a wide range of businesses, municipalities, colleges/universities and non-profit organizations. Together, these Grassroots partners have recovered more than 3 million pounds PE plastic waste from their communities.
One notable success story is the City of Flagler Beach, Florida, where Sanitation Supervisor Rob Smith has leveraged the NexTrex program to address the town’s challenges with plastic film recycling.
“Before partnering with Trex, we had absolutely no control over whether our discarded flexible plastics were truly being recycled,” said Smith. “Now, we not only know exactly where these materials are going, but we are also able to create revenue from our trash.”
“Municipalities and non-profit organizations are ideal partners for our Grassroots Movement,” noted Hicks. “Like Trex, they are committed to bettering their communities and the world at large. Colleges and universities also are having great success with this program by engaging staff, students and community members in responsible recycling. It’s really inspiring to see the amount of good that can be done when like-minded people come together to preserve our planet.”
One of the largest recyclers of PE plastic film in North America, Trex upcycles more than 320 million pounds of recycled plastic waste annually in its manufacturing process. Over the past three decades, the company has diverted more than 5 billion pounds of plastic bags and film from landfills and waterways.
For more information about the NexTrex Grassroots Movement, visit NexTrex.com or contact recycle@trex.com. To learn more about the portfolio of Trex outdoor living products, visit Trex.com.
About Trex Company
For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world’s #1 brand of sustainably made, wood-alternative decking and deck railing, and a leader in high performance, low-maintenance outdoor living products. The undisputed global leader, Trex boasts the industry’s strongest distribution network with products sold through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been named America’s Most Trusted® Outdoor Decking* 4 Years in a Row (2021-2024). The company was also recently included on Barron’s list of the 100 Most Sustainable U.S. Companies 2024, named one of America’s Most Responsible Companies 2024 by Newsweek and ranked as one of the 100 Best ESG Companies for 2023 by Investor’s Business Daily. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
*Trex received the highest numerical score in the proprietary Lifestory Research 2021-2024 America’s Most Trusted® Outdoor Decking studies. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.
Contact: Abigail Cox
L.C. Williams & Associates
312/565-3900
acox@lcwa.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fff57263-5d4d-467c-acef-d35f6677a899
FAQ
What is the NexTrex® Grassroots Movement by Trex Company (TREX)?
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