Salvage Economy: Part 1

September 15 2024 – 09:06AM

To salvage is to have the implicit understanding that, even if things degrade, a second life, whilst not expected or imminent, is at least possible. In this mode, one person's trash is another person's treasure. This way, the potential of a highly productive economy can be realized through the use and reuse of existing goods and infrastructure from the discretionary economy that serve no practical purpose.

For some time now, we have been barreling towards a 7R oriented society, which emphasizes Reducing; Rethinking; Refusing; Recycling; Reusing; Repairing, and Refilling of our waste. Even though this strategy is said to be a comprehensive approach to waste management, much of the (domestic) world prefers a simpler strategy of 3Rs, which emphasize Reduce, Reuse, and Recycle. These 3Rs present a much easier to understand and implement strategy compared to the 7Rs, which feel a lot more industrial.

However, I often like to joke that the 3Rs in fact, represent a different set of 3Rs, Regret, Responsibility, and Remedy. I will admit this to be my doomerist interpretation of what waste management really is; but I will also own up to the fact that Tacitus’ thought provoking metaphor: "he has made a wasteland, and calls it an Empire, influences me quite a bit. Even though Tacitus was referring to the decline of Rome, I find the metaphor appropriate in exploring the waste management zeitgeist and what I view to be a key contributor to our eco-anxieties. In this dichotomy, the wasteland is our excessive consumption habits that hurt the environment due to our insatiable desire for material goods. The empire, on the other hand, is the vast expanse of waste, hoarded items, and potential salvage materials that accumulate across our landscapes due to this overconsumption.

The Salvage economy etymology

Most waste management strategies are based on the zero waste principle, which views waste as a valuable resource that can generate wealth, create employment opportunities, and decrease environmental pollution.

The standard business model for organizations engaged in waste management might involves charging other entities for waste collection and sorting services, then sharing the profits made from selling sorted recyclables to recycling centers. These centers are responsible for transforming these materials into raw materials for new products such as bags, boxes, jackets, shoes, and more.

This approach differs from that of a salvage economy, which is an alternative mechanisms for value creation that relies on the innovative act of salvaging.

Salvaging is the veritable act of saving something, or creating value with that something where value might have degraded previously. That something, might have been broken, destroyed, discarded and used. It might be new, slightly used, or old but still usable.

To salvage is to have the implicit understanding that, even if things degrade, a second life, whilst not expected or imminent, is atleast possible. In this mode, one person's trash is another person's treasure. This way, the potential of a highly productive economy can be realized through the use/resuse of existing goods and infrastructure from the discretionary economy that serve no practical purpose.

Despite being a consistently used turn of phrase for much of the 20th century, the term salvage economy gained more attention during the Highway Beautification Hearings in 1965, particularly in this passage from the Subcommittee on Roads of the Committee on Public Works in the United States:

You know that salvage is the alternative to waste. Salvage is the means by which our economy correctly and efficiently maximizes its goods and services by all segments of society.  To use an obvious and simple illustration, it is clear that not every family can affoed or believes it desirable to purchase a new automobile. This explains the strength and vitality of the used car business.

Similarly, millions of people, acting as individuals or as businessmen, find it essential for reasons of economy and efficiency to utilize parts from cars and truck wrecks where those parts can be salvaged and can serve their needs. It is on this basis that a whole industry, the salvage industry, has been fashioned, giving employment to hundreds of thousands of people and serving, at the same time, a useful and necessary function in our economy.

John Greer's book The Long Descent uses the phrase 'salvage economy' as a tool for transition towards a more sustainable and lower-energy future, helping humanity to navigate the transition from the industrial era:

Proponents of the neoprimitivist movement have claimed that as industrial civilization winds down, the survivors will slide all the way back to the stone age, because the last few centuries of mining have stripped the planet of all the metal ores that can be processed by low-tech means.

Even if the people of the future had to rely on ores still in the ground, this wouldn’t be true because bog iron concentrated by chemosynthetic bacteria is a renewable resource; it has provided respectable amounts of iron to many past societies. Still, there’s no need to rely on bog iron; most of the billions of tons of metals extracted from deep within the Earth are now sitting conveniently on its surface, ready to be salvaged and put to new uses.

He goes on to say:

Every skyscraper in every city on the planet, just for starters, contains hundreds of tons of iron, steel, aluminum, and copper. In a deindustrial society, this is all raw material ready to be cut apart by salvage crews, hauled away on oxcarts, and turned into knives, hoes, plowshares, and other useful things. 

Even the renowned Vaclav Smil agrees with Greer:

Civilization rests on stuff like steel, cement, plastics, copper and ammonia for fertilizers. There is no digitalization in that. You can digitize the control process, but not the material force. That remains the same. The idea that somehow digitalization is leading to the dematerialization of the economy is ridiculous. The average car weighs close to two tons. You need two tons of steel and plastic and glass to make that car. You may have digital doodahs in that car, you may even be watching TV while you are driving the car, but the car is composed of two tons of material.

Salvage economy modes

Over the years, many modes of salvage work have existed: scrapping, crate digging, dumpster diving, liquidating, bargain bin stores, and refurbishing.

Many people can relate to the concept of salvage through their experiences with second-hand garments (mitumba). Since the ban on it’s imports was lifted in 1991, a significant number of Kenyans, including myself, wear these clothes. Outside of mitumba, we also relate to other forms of salvage in the use of everyday materials such as second hand cars, scrap metal, or even wood/timber.

Refurbished laptops from Western markets have likely found their way into many homes and offices, but few are aware of the processes that precede their resale. Refurbishing is a critical aspect of salvage, involving the meticulous cleaning, repair, and restoration of salvaged materials to make them functional once more.

In addition, scrappers play a vital role in the circular economy by collecting and selling scrap materials to recycling facilities or manufacturers. Materials such as metals, plastics, and paper are transformed into new products, reducing the need for virgin raw materials, minimizing environmental degradation and earning a living for scrappers. Next time you see a mkokoteni in your streets, salute the scrapper.

While often overlooked, crate digging is a cherished pursuit among music enthusiasts and collectors alike. A crate digger, as this niche enthusiast is known, delves into crates of used or discarded records, books, and other items in thrift stores, garage sales, and other hidden gems to uncover rare and valuable treasures. This hobby has gained momentum, particularly in the era of analog resurgence, as collectors seek out unique and nostalgic finds to add to their collections.

And while some people view dumpster diving with disdain, associating it with poor or homeless people, the practice involves more than just scavenging through trash. Dumpster divers actively seek out discarded items that still possess value or utility. Salvage is used to drive new cultural movements, a trend in more advanced economies where recycled art is leveraged to get citizens energized and more excited about recycling. Such artistic movements rely on collaboration between reuse centers and dumpster divers to support artists with inspiration, materials, and resources for these creative projects.

Today, there are thousands of liquidation companies. Liquidating, once a niche and sometimes unsavory practice on the fringes of retail, has evolved into a legitimate and sophisticated art form. Historically, liquidating was the domain of coupon hunters and low-life buyers. Today, it involves buying of bulk quantities of surplus merchandise and repackaging it for resale or distribution. The liquidation scope is vast, encompassing products from apparel to industrial equipment, vehicles, and even land.

The COVID-19 pandemic also accelerated changes in retail, creating a surplus that has driven returns of unsold goods and fueled the growth of liquidation markets and liquidation digital platforms. Online marketplaces such as Liquidation.com are important hubs that provide a platform for buyers to access bulk inventory from established retailers, and help to divert unsold goods away from the landfill. This trend has been spotted by YouTube creators who unbox return pallets in full glare of the world, bringing a new level of excitement and exposure to the world of liquidation. These content creators have turned dumpster diving into a fascinating spectacle, making it fashionable and mainstream.

So far, we have busied ourselves with the realities of the salvage economy, one that is fluent in the repurposing and transformation of physical things or components into new applications and or even industries.

But what if the salvage economy is not just a singular thing, but one that exists as a dualistic entity, comprised of both hard and soft forms?

At first glance, it might seem far-fetched to consider the salvage economy in such a way. But what about the knowledge, skills, and data that are just as valuable in the modern age (the intangible salvage economy)? What about the creative ideas and innovative solutions that are born from the ashes of nearly discarded concepts or existing knowledge supply chains? Anyone seeking to create value in the knowledge economy needs to understand the distinctions that the salvage economy develops so richly and so remarkably.

From reusing research outputs to repurposing software code to democratizing access to information, this knowledge-based salvage economy is just as important in maximizing the potential of existing intellectual resources and minimizing waste.

Proponents of workflow based learning (the late great Ray Jimenez) allege that most forms of work today often get curated into ‘experiences’, and essentially start off as ‘thinking’ processes. To understand this, you must expand on the relationship between work, experience, and thinking. Leveraging technology to support business workflows is a form of salvage knowledge production economy, which makes it easier for others to add value onto over time. This is important to remember if you are still trying to understand why AI is eating the world.

If you have been following so far, and as someone serious about creating enduring change in the world, you must be asking yourself what role you can play to participate in whatever form of salvage economy available to you. It is Peter Drucker who reminds us that, “it is not about what we can achieve but what we can contribute.”

Imagine if in your next building or real estate project, you are able to support a local salvage economy by using materials that would otherwise go to the landfill. Imagine if everyone in your community were able to source different salvage materials, readily available to them from a neighbourhood salvage store.

In this context, we could all trade, and share, eventually turning waste into resources. 

This article should not be taken as evidence of my expertise in this domain or related domains. It is merely a reflection of the world that I desire to experience, and one that foresee coming to being.