Most companies view the elimination of waste as merely a cost of doing business; a necessary evil. When fabricators cut metal, they throw the off cuts in a bin. When equipment goes obsolete, it gets taken to the junkyard. Fabrication scraps are stored until someone will pay to haul them away. Companies typically keep their eyes on the prize (the core product) and let the waste go. However, this way of thinking wastes a tremendous amount of money. Many times, a large portion of that money. The only thing standing in the way of money being made from waste generated in industrial environments is a different way of thinking. Instead of viewing metal waste as simply something to eliminate, companies can see it as a by-product of production that contains value.
That does not mean companies have to become scrap dealers or spend hours sifting through the waste stream to find anything of value. All that is required is for companies to set up systems that capture the value from the waste stream while allowing the company to continue to produce products.
What Really Has Value In Industrial Waste
Not all waste is created equal. For example, paper, general trash and most plastics are simply a cost to remove and generally provide very little return. However, metals are different. Steel off-cuts, aluminum scraps, copper wire, brass fittings, stainless steel remnants — each of these materials has an established market value. Machining fabrication shops create metal chips and turnings. Demolition contractors rip out old pipes, structural steel, and wiring. Manufacturers build defective products and discard faulty equipment components.
In addition, the value of these materials is considerable. A years worth of metal off cuts from a busy fabrication shop could total in the thousands of dollars. Construction sites that have had significant demolition activity could total in the tens of thousands of dollars in scrap metal value.
Having Systems In Place To Capture Value
When companies do not have a system in place to capture value from their waste streams, the waste is either commingled with non-metal materials and sent to the landfill, or commingled with general waste and thrown in the dumpster. Either way, the value has been lost due to improper handling.
The Real Costs Of Traditional Waste Disposal Versus Recycling
Traditional waste disposal is viewed as a necessary expense by many companies. Companies pay to have their waste hauled away. The cost of a skip bin can range from $200-$400 per pick-up depending on its size and how often it is picked up. Multiply that by the number of pick-ups you make in a month or week and the cost of hauling your waste can quickly add up to a substantial sum.
Recycling metal waste reverses this equation. Rather than paying to have your waste removed, you are paid for the materials. While you may still have to coordinate the transportation of the materials, the materials themselves are now generating income instead of costing you money. If a company is able to establish an effective recycling program, using companies like and similar service providers who understand the industrial volume of materials, they can potentially turn an otherwise costly expense into a revenue generator. Even if the revenue is relatively small, the cost savings associated with recycling can have a positive impact on the company’s bottom line.
Separating the metals from the general waste eliminates the bulk of the general waste which would normally go to the expensive landfill disposal process and sends the recyclable metals to recycling centers that pay for the materials. Eliminating the landfill disposal costs combined with the income generated from selling the recyclables provides a dual benefit that positively impacts the company’s bottom line without affecting the core production activities of the company.
Establishing Basic Separation Systems
The main reason that companies are unable to capitalize on the value contained within their industrial waste is not the logistics of the recycling process — recyclers will collect the materials if there is sufficient volume. The primary obstacle to establishing a recycling program is the lack of internal systems. When everyone is focused on production, dealing with waste is simply an afterthought. Materials are placed in the first available receptacle and offcuts are commingled with the general waste. No one wants to take the time to sort through the waste when there is real work to be done.
Basic separation systems resolve this issue without impacting the flow of production. Simply replacing the single general waste bin with multiple bins designated for different types of metal (e.g., steel offcuts in one bin, aluminum in another, etc.) allows workers to put the correct type of waste in the proper bin as part of their normal duties rather than having to spend additional time separating the waste after it has been discarded.
While establishing the basic separation systems requires some investment in the initial purchase of the bins or containers, the long term benefits of capturing value from the waste streams far outweigh the initial costs. Proper labeling and the physical separation of bins can help prevent contamination between the different types of metal and make disposing of materials as easy as throwing it in the general waste bin. As a result, employees are much more likely to follow the new procedures.
For companies that generate high volumes of one particular type of material (e.g., a machining fabrication shop that primarily generates steel offcuts), the separation system can be greatly simplified. Designate a single bin for metal waste and store the materials separately from the general waste. When the bin is filled, contact a recycler and arrange for a pickup. At this point, you will receive payment for the materials rather than paying to have them removed.
Volume Requirements and Collection Logistics
Recyclers like this company of sydney metal recyclers typically base their collections on the volume of materials collected. Collecting a coffee can full of copper wire is unlikely to be worth a recycler’s time. Collecting a pallet of copper however, is. Therefore, understanding the minimum volumes for collection will allow companies to develop plans that reflect the realistic collection limits of recyclers rather than expecting them to come to pick up the smallest quantities of material.
Smaller operations that are not generating large volumes of material may have to store the materials for extended periods of time before the quantity reaches the minimum collection limit. Alternatively, smaller operations may choose to partner with neighboring businesses or other local operations to combine materials in order to achieve a larger, and therefore more valuable, collection volume.
Another alternative to relying on collection is to use the drop-off method. Small operations will collect materials over a period of time until they have reached a sufficient quantity to justify making a trip to a recycling center. This option works well when a trip to the recycling center coincides with another business related trip or when the materials are taking up too much space and it is advantageous to get rid of them.
As the volumes of material increase, so do the logistics of the collection process. Large industrial operations that generate significant volumes of metal waste can often negotiate for regular scheduled pickups. Sometimes, these larger operations can even negotiate for the recycler to provide bins or containers for the company to collect and store the materials in. Regardless of how the logistics are handled, the recycler is responsible for collecting and processing the materials because the volume of materials warrants it.
Price Fluctuations and Market Conditions
Metal prices are influenced by global commodity markets. For example, the price of copper may be high during one quarter and low during the next. The price of steel may vary based on demand from the construction industry and other external influences. These fluctuations in metal prices will directly influence the price that companies receive for their scrap materials.
Fortunately, recycling metals almost always produces a profit for companies regardless of the current market prices for the various metals. Even when metal prices are low, receiving some form of compensation is preferable to paying to have the materials removed. When prices are high, the revenue generated from recycling can be impressive.
From a practical standpoint, most companies realize that convenience and managing space are more important than maximizing profits from the sale of their scrap materials. When the scrap materials are taking up valuable space or the bins are full, it is time to schedule a pickup regardless of the current prices for the metals.
Beyond Direct Financial Returns
In addition to the direct financial aspects, metal recycling has many indirect advantages. Beyond the immediate financial benefits (reduction of the cost of disposal and income from sale of materials), companies today are seeing an ever-increasing impact on how their company is viewed as environmentally responsible. Companies are able to show that they are actively involved with waste reduction and recycling processes, which will improve their environmental reputation, without having to make large changes in the way that they operate.
In some areas, such as construction, manufacturing, and other industries, there is a growing amount of pressure from government agencies and customers regarding waste management and sustainability. By establishing a recycling program within these industries, companies are demonstrating that they are meeting current regulations and are positioned to meet any future requirements that may arise.
Changing Attitudes and Mindsets
While the largest and most important change that is required to start a successful metal recycling program is not necessarily operational, but rather mental; moving from viewing “waste disposal as a necessary expense”, to viewing “waste materials as something that we can recover and utilize”.
Implementing a metal recycling program does require a significant effort and commitment at the beginning of the process. However, starting small will help the process go much smoother. For example, begin with one type of recyclable material (such as steel offcuts or aluminum scraps) and develop a system for separating that material. Understand the logistical aspects of collecting and selling the separated material. Once you feel comfortable with the process for the first material type, then begin implementing recycling programs for additional materials.
Companies that successfully establish and maintain metal recycling programs view waste recovery as a normal and regular part of their operations. They use separate collection bins for each type of material being recycled. They schedule collections at regular intervals. As companies become accustomed to recycling, the recovered materials become an expected source of income, and are incorporated into the company’s budget. Companies can convert what was once solely an expense into a profit center through the implementation of simple and effective recycling procedures.
