CARE opened 2020 with momentum and great anticipation for expending recycled output, new capacity coming online and new market opportunities for the California Carpet Stewardship Program. However, carpet sales were lower than expected so that the flow of used carpet to recyclers was more difficult to secure. Coupled with ongoing permit delays and the failure of PG&E to deliver on promises to supply power to a new recycling facility, recycled output was down from Q4 2019. The last few weeks of March also saw the initial impacts of the pandemic. Q1 marked the first time since 2015 that we did not see an on-going uptick in the recycling rate.
The full impact of the pandemic will be seen in Q2 and beyond. Efforts in the second quarter are focusing on continued support for recyclers and key stakeholders as they work to rebuild their capacity and move product. Given that demand for output remains strong in several sectors, and the expectation the auto sector will rebound, CARE is still optimistic 2020 will see renewed growth.
See details in the presentation below.