January 8, 2021
Todd Wondrow (Maren Engineering Corporation President)
Looking back over years of business, one thing that stands out is how much things have changed. It may sound cliché but it’s happening whether we welcome it or not.
If you operate a distribution or manufacturing facility generating cardboard, plastic or related byproduct, you likely have experienced some unwelcome changes recently getting rid of this material. For years you’d gotten used to seeing compactor load after load hauled away and expecting a check paying you for this material. Then one day your AP department calls and says, “we used to get a credit on our trash bill for our cardboard, and now they are charging us for each load.”
“I’m on it,” you say. And after a phone call with your hauler discussing things like Yellow Sheet, Operation Green Fence and Operation National Sword you reluctantly watch this revenue center evaporate like a mirage, replaced with a cost center that you now must answer for. Yes, material prices have seen wild fluctuation and even historic lows over the last few years and all signs indicate that it will remain a buyer’s market.
Even if this was not your scenario and you are already baling your byproducts, depending on your equipment you may still be experiencing the same financial impact of these market changes. Regardless of the material markets, improperly applied vertical or horizontal balers and compactors will manifest in high labor costs, lost time & injuries, employee turnover, maintenance costs and wasted floor space.