It should come as no surprise to any small business owner that efficient practices are the best way to keep your company profitable. If you own a fabrication business, you work with precious metals and materials every day. If you’re in plumbing or construction, you pay to have these same metals thrown away as trash every week.
Changing your perspective, to look at excess material as revenue rather than garbage, is a powerful move. Recycling scrap metal can significantly decrease your waste removal costs and create a revenue stream to insert cash back into your business.
Increasing Revenue with Scrap Metal Recycling for Small Businesses
Imagine what you could save each month by not throwing money away. The average small business pays a flat rate every month to have their trash and recycling removed. That empty dumpster represents money exiting your operating budget each month. By sorting your trash and recovering recyclable metal, you create a revenue-generating opportunity on a monthly basis.
Sorting begins by understanding the proper terminology. Ferrous metal (think cars, fences, pipes) refers to anything magnetic. Typically these metals are less valuable but traded in higher volumes.
Non-ferrous, non-magnetic metals include copper, brass, aluminum and others. These materials cannot stick to a magnet and carry a much higher profit per pound.
Why is this important to you as a small business? Non-ferrous metal prices spike and dip like any commodity. However, there is always a robust market for these materials because it costs considerably less energy to recycle metal than to mine new sources. A hundred pounds of clean copper wire dumped on a jobsite could pay for your fleet’s fuel for the month. Rather than throwing it away, let that money work for you.
Sorting Scrap Efficiently to Improve Your Workflow
Safety and efficiency are two more of the benefits of a consistent recycling program. Left unchecked, scrap can build up around a shop or worksite, creating trip and fall hazards and taking up precious square footage. Developing a system to funnel scrap metal to a single collection point will help you maintain clean spaces for production and storage.
Try implementing a “tote system” within your shop. Instead of one large garbage can, place multiple smaller ones at your workstations. One can for aluminum shavings, one can for stainless steel scraps, one can for copper contaminants. This will prevent your bins from becoming cross-contaminated, or mixed together: A load of prime aluminum scrap is only worth the price of iron if it has iron bolts mixed in. Showing your crew the differences between various metals will take minutes of your time, but will pay dividends when you drop off.
Position Yourself as Eco-Friendly in Your Local Economy
When you recycle as a business, you build equity with your customer base. Both residential customers and commercial clients do their best to work with green companies. If you can advertise your company proudly recycles 90% of your metal waste, you’re leaps and bounds ahead of your competition still stuffing landfills.
Think also of all the energy you can save by embracing scrap metal recycling. The process of recycling aluminum saves 95% of the energy needed to create new aluminum from mined bauxite. Every time you pitch in and recycle a load of scrap, you are decreasing the overall carbon footprint of the manufacturing industry — and keeping these materials local, in our economy and out of the hulls of foreign ships bound for China.
Tip | Ferrous vs. Non-Ferrous Metals
Keep a small magnet in your pocket at all times. If it sticks, dump it in that ferrous tote. If your magnet doesn’t stick, odds are you’ve got copper, aluminum or brass. Take the few extra minutes to separate these materials and you’ll be paid substantially more when you sell.
Setting Up Your New Recycling Program
- Take Inventory | Set aside a month to see what your business tosses in the trash every week. Make note of the types of metal you see most frequently.
- Choose a Location | Identify a dry, covered area to stash your scrap. It’s recommended you keep your non-ferrous materials secured in a locked cabinet. They’re worth more than your tool chest and could easily be stolen.
- Acquire Containers | Old paint buckets or labeled garbage bins work perfectly. Remember — you don’t need expensive trucks or trailers to participate.
- Educate Your Employees | Help your staff understand why you’re recycling. If they know these funds go directly to the company Christmas party or new equipment, they’ll be more invested in proper sorting.
- Shop Around | Call local yards and see who offers the best “per pound” rate for your material. A good vendor will walk you through how to prep your metals (stripping plastic sheathing off copper wire, for example) to get their top dollar.
Recycling Metals as a Small Business
Some small business owners avoid this practice because they worry it’s too time-consuming. Perhaps your company doesn’t throw enough metal away to make it seem worthwhile. But remember even small amounts of scrap can equal thousands of dollars at the end of the year. If you lack the capacity to transport your loads, look for a scrap metal recycler that offers small-load pickups.
Never fear fluctuations in the pricing of scrap metal, either. The price of copper may be high this week and low the next, but overall, metals have been appreciating for years. Think of your scrap pile as a “savings account” you can cash out when the market is high. Most scrap yards will publicly publish their rates, or at least tell you when the price is favorable, if you’re a regular commercial seller.
Small Business Recycling Quiz
- Does your business produce over 50 lbs of metal waste monthly?
- Do you currently pay for a dumpster to be filled with metal debris?
- Would an extra few hundred dollars per month improve your business?
If you answered in the affirmative to any one of the above questions, investing time in a dedicated recycling plan could be essential to your business prosperity.
Invest in the Time Separating Your Heavy and Larger Scrap
For business owners that use and dispose of heavier equipment, pay special attention to this: Large structural steel, old farm equipment, and heavy-gauge pipe take up significant space and weigh tons. Instead of letting these materials rust in your backyard, you can recycle them into prepared steel and boost your weight.
Typically, this category includes #1 heavy melting steel (at least 1/4″ thick) and #2 heavy melting steel (a thinner steel). Famliarize yourself with these grades and take pride in your scrap metal. Your trash is a product to be sold.
Call On Action Metals | A Metals Recycling Partner You Can Trust
We don’t want material logistics to slow down your business. Here at Action Metals, we pride ourselves on servicing both the industrial sector, one-man shops and small businesses. Whether you are a pro scrapper or an ops manager, we have straightforward solutions that will maximize your investment.
Transparent Weighing. Competitive Market Prices. From “tons of tires” to just a bushel of brass, our job is to help you turn trash into treasure. Let us do the driving so you can keep working.