What Tire Haulers Should Expect as Targets Drop Heading Into Busy Season

The tire recycling industry is entering one of the most volatile periods in its history. As RPRA‑approved PROs continue to lower collection targets and restrict allocations, haulers across Ontario are already feeling the pressure. With busy season approaching, the gap between the volume of tires generated and the volume PROs are willing to pay for will widen even further. This mismatch is not temporary, it is structural, and haulers need to understand what is coming, how to protect themselves, and what options remain.

The Reality: Lower Targets Mean Less Work, Less Revenue, and More Risk

The PROs’ decision to reduce targets has created a cascading set of problems that haulers cannot ignore.

The immediate impacts haulers are already seeing:

• Reduced allocations that do not match real‑world tire generation

• Longer wait times for pickups, leading to angry customers and lost accounts

• Forced layoffs as revenue drops below sustainable levels

• Increased competition among haulers for shrinking volumes

• Uncertainty around contract renewals and sudden terminations

• Mental and physical stress from operating in an unstable environment

These pressures will intensify as spring and summer bring the highest tire turnover of the year. When the volume of tires increases but the PROs’ targets do not, haulers will be left with more unpaid work, more customer complaints, and more financial strain.

Why This Is Happening: A System Designed Backwards

The core issue is simple: Producers are controlling the recycling system while also benefiting financially from reducing their own obligations.

Under the current model:

• Consumers pay eco‑fees expecting recycling.

• Producers collect those fees.

• Producers then run PROs that set their own targets.

• Lower targets mean more unspent money kept by producers.

• Haulers and processors absorb the fallout.

This structure has created:

• Five separate PROs, each with its own executive team, overhead, and administrative costs

• No unified logistics, leading to inefficiency and duplication

• No accountability for service failures

• No transparency on how consumer fees are actually used

The math does not work. The system is not sustainable. And haulers are the first to feel the consequences.

What Haulers Can Expect Over the Next 6–12 Months

1. Further reductions in paid collection volumes

Targets are likely to continue dropping, especially if producers push for even lower obligations.

2. More contract instability

Sudden terminations, reduced service areas, and reassignments will become more common.

3. Increased pressure on customer relationships

Dealerships, garages, and tire shops will experience delays and may blame haulers, not PROs.

4. Growing tension between haulers and PROs

As the gap widens between real‑world tire generation and paid collection, disputes will increase.

5. More haulers exiting the industry

Some will close voluntarily. Others will be forced out.

How Haulers Can Survive This Period

1. Document everything

Keep detailed records of:

• Missed allocations

• Customer complaints caused by PRO delays

• Unpaid pickups

• Revenue losses

• Staff reductions

This documentation is essential for:

• Legal protection

• Government advocacy

• Future compensation claims

• Association‑wide reporting

2. Strengthen direct customer relationships

Even though PROs control allocations, customers still value:

• Reliability

• Communication

• Transparency

Haulers who maintain strong relationships will be better positioned if the system changes or opens up.

3. Diversify revenue where possible

Options may include:

• Scrap metal

• Transportation services

• Storage fees

• Private pickups (where legally permitted)

• Partnerships with processors

Diversification won’t replace lost PRO revenue, but it can stabilize cash flow.

4. Collaborate with other haulers

The old model of competing for territory is no longer viable. Haulers benefit from:

• Shared routes

• Shared equipment

• Joint advocacy

• Unified reporting of PRO failures

Strength in numbers matters now more than ever.

5. Engage in collective advocacy

The Haulers Association must continue pushing for:

• Legislative reform

• Transparent use of consumer fees

• Fair compensation for haulers

• Enforcement of service standards

Haulers cannot fix this system alone. But together, they can force change.

What Options Haulers May Have Going Forward

Option 1: Push for a complete legislative overhaul

This includes:

• Removing producers from direct control

• Establishing new legislation and put more on the RPRA

• Mandating transparent reporting

• Ensuring eco‑fees are used for recycling, not profit

• Create an accounting board to oversee how the funds are dispersed from consumer to recycling

Option 2: Demand fair compensation and stable contracts

Haulers should not be absorbing the financial risk of a system they do not control.

Option 3: Explore legal avenues

If contracts are terminated unfairly or if PRO actions cause measurable financial harm, legal recourse may be possible.

Option 4: Prepare for industry restructuring

If the current model collapses—as many expect—haulers who remain organized and documented will be best positioned to shape what comes next.

The Bottom Line

The system is failing, and haulers are carrying the weight of that failure. As targets drop further heading into busy season, the pressure will intensify. But haulers are not powerless. By documenting impacts, strengthening customer relationships, diversifying revenue, collaborating with each other, and pushing for legislative reform, the industry can survive this period and together we can help each other build a better system. A better future!