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Used Textiles as a Revenue Stream Alan Wheeler – Director – Textile Recycling Association
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Page 1: Tra presentation for chase 2014

Used Textiles as a Revenue StreamAlan Wheeler – Director – Textile Recycling Association

Page 2: Tra presentation for chase 2014

Used Textiles as a Revenue Stream.

About the Textile Recycling Association• Established 1913.

• Trade Association for collectors, graders and exporters of used clothing and textiles.

• Membership includes both charities and businesses..

• TRA Code of Practice – Launched 2012.

www.textile-recycling.org.uk

Page 3: Tra presentation for chase 2014

Used Textiles as a Revenue Stream.

The value of used clothing.

www.textile-recycling.org.uk

Source – Lets Recycle.com (quoted mid price values)

Page 4: Tra presentation for chase 2014

Used Textiles as a Revenue Stream.

Used clothing collection rates in the UK.

www.textile-recycling.org.uk

Source: Oakdene Hollins and Charity Retail Association.

Page 5: Tra presentation for chase 2014

Used Textiles as a Revenue Stream

Causal factors of the rise in value.

• 2004 – EU Expansion – 10 new countries joined.

• Temporary restrictions on migration strict in other countries.

• UK – established industry.

• British clothing considered to be “the best”.

• Government promotion of recycling.

• Specific promotion of textile recycling following Waste Strategy for England 2007.

www.textile-recycling.org.uk

Page 6: Tra presentation for chase 2014

But what has happened since 2013

Value of used clothing from Jan 2013

www.textile-recycling.org.uk

Source – Lets Recycle.com (quoted mid price values) and TRA

Page 7: Tra presentation for chase 2014

Used Textiles as a Revenue Stream

Causal Factors of price drop.

• Warm European Winter

• Expected influx of more winter wear from charity shops – problem expected to deepen.

• Decline in quality – driven down by proliferation of competition.

• Charity shops – eking more value out of donations by rotating unsold stock.

• New clothing producers struggling to shift their items• Resulting in pressure to reduce costs – quality suffers.

• Strong Pound, has made UK exports of used clothing more expensive.• Ghana – currency 29% lower than 1st Jan 2013

• Kenya – currency 20% lower than March 2013.

• Demand from Eastern Europe under constant pressure from rising standards of living.

• 16% of TRA members went out of business in 2013.

www.textile-recycling.org.uk

Page 8: Tra presentation for chase 2014

Used Textiles as a Revenue Stream

Consequences.• Values across all grades have declined since the start of 2014.

• Charity shops reporting that some collectors are only taking higher value goods.

• Collectors are reducing the size of their collection areas.

• We are likely to see a decline in the number of Cash for Clothing operations.

• We will hopefully see a decline in theft of clothing.

www.textile-recycling.org.uk

Page 9: Tra presentation for chase 2014

Used Textiles as a Revenue Stream

Solutions/The way forward.• Stay with collector if they continue to provide a competitive service.

• Ensure regular payments.

• If collector is only taking higher value items – ask for a price renegotiation.

• Consider teaming up with other charities in your area.

• Contact the TRA to find a collector.

www.textile-recycling.org.uk

Page 10: Tra presentation for chase 2014

For more information, contact us at:

2 Old College Court, 29 Priory Street, Ware, Hertfordshire, SG12 0DE

0845 600 8276

[email protected]

www.textile-recycling.org.uk

Thank you for listening