The Carpet America Recovery Effort (CARE) released the California Carpet Stewardship Program results for Q3 2024.

The third quarter of 2024 saw an increase in both gross collections and recycled output of 13% and 7.7%, respectively. The overall year-to-date Recycling Rate is 38%, which is well ahead of our 34% target for 2024.

While Q3 is typically the strongest quarter, overall, markets remain challenging. Oil has dipped below $70 per barrel (WTI crude benchmark) and that, along with slowing auto sector demand and cheap imports from China, will continue to put pressure on outlets. As noted in the last two quarters, carpet pad markets, not covered by the carpet stewardship law, also continue to be depressed.

Sales in Q3 were 14.4 million square yards, essentially on budget for the first time in years. However, overall sales in 2024 are down versus the Plan budget. As a reminder, the new Five Year Plan reflects a 32% reduction in sales over the life of the Plan.

Overall, 80% of total expenses were paid out in the form of subsides and 78% of those subsidies were paid to California recyclers. Revenue exceeded expenses, and the fund balance ended the quarter at $6.7 million, up by $1.7 million (+16%) versus the Q2 balance.

To view the full CARE Q3 report, click here.