Navigating the Turbulent Waters of Ontario's Tire Recycling System Challenges for Haulers
Ontario’s tire recycling system is under growing pressure, and tire haulers across the province are facing significant challenges. Over the past year, tires have been piling up at dealerships, garages, and collection sites faster than expected. This buildup has raised concerns among industry participants and highlights deeper issues within the current recycling framework.
Reduced Recycling Targets and Their Impact
In 2025, Ontario lowered its provincial tire recycling target from 85 percent to 65 percent. This change, reported by CBC News, has led to hundreds of thousands of tires accumulating at multiple locations across the province. The lower target means that fewer tires need to be collected and recycled annually, which has disrupted the flow of tire collection.
Producer Responsibility Organizations (PROs) are responsible for meeting these annual recovery targets. Once they reach the target, the regulations do not require them to continue collecting tires for the rest of the year. This regulatory gap has created slowdowns in tire collection, even though dealers and fleets continue to generate end-of-life tires at normal seasonal volumes.
“The Producer Responsibility Organization (PRO) system simply isn’t working, and it stopped working well before the quota was reduced. It’s hard to ignore the governance question, too: when a PRO is run and operated by the very producers it serves, it raises reasonable concerns about whether decisions are being driven more by producer interests than by the PRO’s mandate to oversee a fair, effective recycling system especially when one PRO is reportedly governed by a 100% producer board and controls more than 70% of the market.”
Operational Challenges for Tire Haulers
For tire haulers, these system-wide pressures translate into real operational difficulties:
Reduced quotas and inconsistent allocations
Many haulers report receiving sharply reduced quotas or unpredictable allocations. This inconsistency makes it hard to plan routes, manage staffing, or schedule equipment use effectively.
High fixed costs despite lower volumes
Hauling tires is a high-overhead business. Costs such as trucks, insurance, fuel, maintenance, and equipment financing remain constant regardless of workload. When volumes drop unexpectedly, haulers face immediate financial strain.
Network terminations without clear explanations
Some haulers have been removed from collection networks without clear reasons. This leaves them with fixed costs but no access to the system they have served for years. The lack of transparent criteria or communication adds to their uncertainty and frustration.
Why Haulers Are Feeling the Pressure More Than Others
Tire haulers operate at the frontline of the recycling system. They are directly affected by changes in collection targets and PRO policies. Unlike dealerships or collection sites, haulers rely on steady volumes to cover their fixed costs and maintain profitability.
The current system allows PROs to meet targets early in the year and then slow or stop collections. Dealers and garages, however, continue producing tires at a steady pace. This mismatch creates bottlenecks where tires accumulate but haulers have no work.
Examples of the Impact on Haulers
A mid-sized hauler in southwestern Ontario reported a 40 percent drop in tire collection volumes after the target reduction. This forced them to lay off staff and reduce truck usage, increasing per-unit costs.
Another hauler in the Greater Toronto Area was removed from a PRO’s network without warning. They lost access to several key collection sites, leaving trucks idle and contracts unfulfilled.
Smaller operators have struggled to absorb the financial shock, with some considering exiting the industry altogether.
The Need for Clearer Communication and Fairer Policies
Haulers emphasize the need for:
Transparent criteria for network participation
Clear guidelines on how PROs select or remove haulers would help operators plan and respond to changes.
Consistent communication from PROs
Regular updates on quotas, collection targets, and system changes would reduce uncertainty.
Consideration of seasonal tire generation patterns
Since tire production at dealerships and fleets remains steady, collection targets and quotas should reflect this reality to avoid tire buildup.
What Can Be Done to Support Haulers and Improve the System?
Addressing these challenges requires cooperation between regulators, PROs, haulers, and other stakeholders. Possible steps include:
Revisiting the recovery target policy
Adjusting targets or introducing interim collection requirements could prevent tire accumulation.
Implementing rolling or monthly collection targets
This would encourage steady collection throughout the year rather than front-loading efforts.
Creating a transparent hauler network management framework
Establishing clear rules and communication channels for hauler participation would build trust.
Providing financial support or incentives for haulers
Assistance with fixed costs during low-volume periods could help stabilize operations.
The Bigger Picture: Environmental and Economic Stakes
Tire recycling is crucial for environmental protection and resource recovery. Tires left to accumulate pose fire risks, attract pests, and waste valuable materials. Efficient collection and recycling reduce landfill use and support a circular economy.
Haulers play a vital role in this system. Their ability to operate sustainably affects the entire tire recycling chain. Without addressing their challenges, Ontario risks long-term inefficiencies and environmental harm.
Moving Forward with Practical Solutions
Ontario’s tire recycling system is at a crossroads. The current pressures on haulers reveal weaknesses that need urgent attention. By improving communication, adjusting policies, and supporting haulers, the province can restore balance and ensure tires are collected and recycled efficiently.
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