Used equipment companies, or “recycled” recycling equipment by Steve Apotheker

Resource Recycling

With the tremendous demand for more waste recovery, many recycling operators have looked to used equipment to provide an inexpensive response to this challenge. As a result, used equipment companies have seen quick sales in any serviceable used equipment that comes on the market. Indeed, demand has outstripped supply for the past two years. While the used equipment market is somewhat cyclical and is influenced by the health of the economy, Alan Ross of Alan Ross Machinery feels “the future of used recycling equipment is favorable regardless of the economy.” The driving force for this assertion is the growing necessity for recycling to relieve our shrinking landfill capacity. Jim Dutfield, owner of the Canadian firm The Brofield Group as well as its American subsidiary Reftech, corroborates Ross’s observation. In the Toronto area, landfill costs have tripled and there is now a ban on loads of garbage going to the disposal site if they contain more than 15 percent old corrugated containers. As a result, paper balers have been in non-stop demand for the past year. Dutfield remarks that “people who are inexperienced with recycling can be staggered by the costs of new equipment so they start looking for used equipment.” Companies like Ross’s and Dutfield’s are part of an informal network that actively pursues used equipment as a major, though not necessarily sole, focus of their business. Almost always, these used equipment suppliers will also serve as manufacturer representatives for new equipment in order to provide both options to customers. While the actual manufacturers of new equipment will often take used equipment, particularly their own, as a trade-in during a sale, these businesses normally don’t pursue used equipment. As a result, the inventory of used equipment stocked by manufacturers is usually sparse. This article (and the accom-

panying directory) focuses only on those companies for which used equipment is an important and independent part of their total business. Services provided by dealers Al Schulz with Counselor Engineering summarizes the basic function of a used equipment company. “Most people don’t have either the time to look for or the expertise to market used equipment. We bring the customers to the market and screen them based on their application. We also evaluate and prepare a specification sheet to represent the equipment to the customer.” In general, the main factor motivating a customer to consider used equipment is price. In this case, that factor will often determine whether a piece of equipment is sold as-is (what you see is what you get) or whether it will be reconditioned. When equipment is sold as-is, the price is generally lower and the customer can take possession in the shortest time period. With reconditioning, the customer gains assurance that the equipment will meet a certain operating standard as represented by the seller. Although the price is generally higher for used equipment that has been reconditioned, there is less chance for unanticipated downtime and unexpected costs. This is often desirable for situations in which the machine will be called on to perform at peak capacity upon delivery, as opposed to serving a backup function. A bank is also much more likely to fund a piece of equipment that has been reconditioned by professionals. In the final analysis, an equipment company’s success will be determined by its ability to attract repeat customers. To accomplish that goal, the dealers provide a range of services to their customers. They have established a network of contacts that can supply parts and usually service the piece of equipment. Often the dealer has the capability to evaluate the cus-

tomer’s application and match it to the appropriate piece of equipment. The dealer can also help identify special installation requirements such as a foundation or effective operating area needed to achieve maximum throughput. Some, such as Alan Ross, are members of the Association of Machinery and Equipment Appraisers and are trained to give qualified appraisals of used equipment. This service can often be helpful in obtaining full financing from a lending institution. The size of used equipment companies varies from one-person operations working out of an office to companies that occupy 10,000- to 40,000-square-foot warehouses with 10 to 30 employees. The smaller companies usually pursue equipment sales on an as-is basis. While their volume of business may be too small to

sustain their own shops, many companies have developed working relationships with independent mechanics and shops that can put the equipment into working order if needed. The larger companies which have warehouse space generally tend to recondition equipment that is taken to their lots. Many have set aside special areas where the equipment can be demonstrated to prospective customers. This can be helpful to first-time customers as well as those that have a special application. These companies can also provide valuable warranties that range from 30 days to six months. With a large inventory of equipment drawn from a service area of hundreds of miles, it can be very attractive for a potential buyer to make one trip to a warehouse rather than make numerous

1 A downstroke baler is reconditioned. 2 A reconditioned horizontal baler.

trips to look at single pieces of used equipment. Networks for used equipment Some dealers have computer systems to help locate a piece of equipment for a buyer. Counselor Engineering maintains a database with over 1,000 listings. Other companies such as Ely Enterprises and Alan Ross Machinery have found equipment turnaround to be too fast in the last two years to motivate them to complete their listings on computer.

Resource Recycling August 1989

In addition to responding to direct inquiries, several firms mail out monthly or quarterly circulars that list the equipment available for sale (see directory for a partial list). There is no charge to be placed on a mailing list. The circulars also remind their mailing list contacts of the company’s availability to buy used equipment. Used equipment dealers maintain close, but informal, contact with each other for trading equipment. Another low cost network is pursued by Steve Colton of Colton Equipment, who taps into the network of waste paper brokers whenever he is looking for either potential clients or used equipment. One can also plug into the used equipment market by looking at trade publications for the scrap paper and metal industries. The Institute of Scrap Recycling Industries publishes a monthly membership newsletter that contains ads for used equipment. The weekly Official Board Market and the daily American Metal Market provide even more timely avenues for used equipment dealers as well as offering advertisements for individual businesses that want to buy or sell used recycling equipment. With the quick turnaround in used equipment, publications less frequent than monthly will contain too many out-of-date listings. While there are no associations for dealers that focus on used equipment specific to recycling processors, there are several publications which contain some listings that would be of value. For example, the Locator is published monthly by the Machinery Dealers National Association and contains 28,000 entries that focus primarily on heavy machinery. The most useful listings for recycling operators are waste paper balers, forklift trucks, conveyors, shredders and magnets. The Used Equipment Directory is an example of an independent publication that covers heavy machinery with some overlap for recycling processors. With a circulation of 75,000, it contains over 34,000 listings from 800 dealers. The directory’s staff have also developed a computer-based dealer management system for used equipment companies. As recycling starts to take off, some companies that have traditionally supplied heavy equipment are starting to branch into recycling. For example, N.W. Design & Equipment has supplied crushers and conveyors to the aggregate and mining industries for over 30 years. Some clients are now opening up recycling yards for asphalt, concrete, paper and metal. Tom Gilligan, owner of N.W. Design & Equip-

42 Resource Recycling August 1989

Reconditioned equipment is often tested before sale.

ment, says that nine out of 10 calls from these recycling operators are for used equipment. Product liability slows growth One issue that has affected the growth and marketing of used equipment is product liability. While product liability has generally been attributed to the original manufacturers who designed the equipment, recent lawsuits have been increasingly far-ranging and have involved all companies that effected the sale or condition of the equipment. Steve Colton of Colton Equipment is concerned about the rise in product liability insurance due to lawsuits arising from misuse or malfunctioning of used equipment. Colton and Schulz (of Counselor Engineering) advocate the strategy of acting like a real estate broker in that they bring the buyer and seller together, but the dealer does not become part of the “chain of sale.” Their companies then receive a percentage of the sale price while incurring little or no liability. Other companies have taken a different position. While Ken Ely of Ely Enterprises does carry expensive product liability insurance, he believes the best insurance is to have his trained mechanics restore the equipment to meet any applicable Occupational Safety and Health Administration and American National Standards Institute standards. Ely has also gone one step further in that he refuses to handle certain pieces of equipment such as old

chain-driven balers and mechanical ligator shears. He feels there are certain operational procedures that incur problems which his mechanics can’t s mount. Buying used equipment While there is no quick and easy way evaluate equipment, a little initial work can go a long way. Used equipment deal have built up a practical expertise familar with the quirks and specific questions associated with each type of equipment While some equipment has become less popular due to safety concerns, of equipment has remained in tight sup In fact two ram, export-density, horizontal balers have appreciated in value. It is to see one of them remain on the ma for more than a few days. Most dealers stress the importance determining whether the equipment is a good design. This can be assessent talking to other owners of the same. Another way to evaluate the equipment is to call the manufacturer to see v changes have been made in subsequent models. It is also important to find about the availability of parts and service from the manufacturer. It is good to certify this information early on. According Schulz, the most cost-effective time to overhaul on large equipment is when it is torn down for moving. The last background research into the specific piece of equipment to purchased. Are maintenance record

Used recycling equipment is received in conditions.

many

a repair log available? If not, does the company look well-run so that it is likely that the equipment received regular care and was operated within its design parameters? Can you talk to the equipment operator to get some history? Certainly the most valuable assessment is made by observing the piece of equipment. Does it operate smoothly without frame vibration or grinding noises? What is the condition of the final product? Do bales come out with fins or lips indicating a worn ram or bale chamber? Safety switches and other features should be tested to see if they are functioning properly. The circumvention of safety features may be an indication of improper operation or equipment tampering. Finally, a general inspection of the item is helpful. Is the metal straight and not deformed? Are there serious wear marks Or grooves? Look for oil leaks from hydraulic systems and motors, Maintenance records are valuable One recommendation dealers made is to keep maintenance records on new and used equipment. This can definitely contribute to a higher resale value for your equipment. Unfortunately these basic

tainer smashers will have been designed records are not common to the industry. The Annaco Company in Akron, Ohio specifically for recycling. The formation of Alcoa Recycling received high marks from Al Schulz for its growing maintenance program. Annaco is Machinery Service (ARMS), a newly the country’s largest block-breaking oper- formed subsidiary of Alcoa, is evidence ation. Rich Robertson, the company’s en- of the need for upgraded service levels to gineer, describes three basic activities handle this growing infrastructure. ARMS currently offers Alcoa’s customers a repair that are part of their program. First, a day-to-day checklist is put to- and parts service for can flatteners and gether. Basic lubrication and main- densifiers with crews located in five states tenance activities are performed as well and a warehouse in Memphis, Tennesas checking for loose belts and bolts or see. (Resource Recycling will be providany other critical areas. Room is left at ing coverage of ARMS in an upcoming the bottom of the checklist for comments issue.) There will also be a greater need for a that address additional work or evaluation by the staff mechanic. Robertson believes more formal association to augment or the equipment operator will be the most replace the informal network of used sensitive to variations from the normal equipment dealers in order to keep up mode of operation and should perform this with the demands of the recycling community. daily maintenance. Second, a regular maintenance schedule is developed. This is usually developed from the operations manual that comes with the equipment or is done in consultation with the original manufacturer. The challenge with used equipment is that one doesn’t know how many operating hours have been accumulated so it is difficult to know where one is in the maintenance schedule. One either estimates or waits for the first breakdown. Third, a log is kept on all repairs by piece of equipment. The record clearly shows parts and labor. Robertson stresses that the current system is very labor intensive which is why most companies don’t keep such records. He is looking at a computerized preventive maintenance program that would streamline the recordkeeping and data analysis. Challenge of growth As recycling becomes institutionalized in every state, it is clear that the next five to 10 years will start to generate a substantial volume of used equipment. Governments and large chain stores, among others, will be the primary generators since they usually buy only new equipment. And, many items such as collection vehicles, can densifiers and glass con-

Alan Ross Machinery Corp.* 3240 Commercial Ave. Northbrook, IL 60062 (312) 480-8900 (312) 480-1830 (fax) Contact: Alan Ross

Alcoa Recycling Machinery Services (ARMS) 234 Titan Dr. Memphis, TN 38109 (800) 288-ARMS (901) 396-0268 (fax) Contact: Carolyn Graziano

Resource Recycling August 19

Al-Jon Inc. P.O. Box 598 Ottumwa, IA 52501 (515) 682-4506 (515) 682-6294 Contact: Jim Langland American Pulverizer Company 5540 West Park Avenue St. Louis, MO 63110 (314) 781-6100 (314) 781-9209 (fax) Contact: Ed Kramer American Recycling Machinery P.O. Box 279 Murphysboro, IL 62966 (618) 684-3821 Contact: Harry Greenberg American Recycling Systems P.O. Box 1067 Monroe, NC 28110 (704) 821-9201 (704) 289-8386 (fax) Contact: Joe Szany

West Linn, OR 97068 (503) 656-9985 (503) 656-9989 (fax) Contact: Steve Colton Counselor Engineering, Inc.* P.O. Box 428 Hudson, OH 44236 (216) 656-3247 (216) 252-5607 (fax) Contact: Al Schultz Eco-Systems 3120 Big Bend Blvd. P.O. Box 3537 St. Louis, MO 63143 (314) 645-3222 Contact: Ken Hohlt, Sr. Ely Enterprises, Inc.’ 3560 West 140th St. Cleveland, OH 44111 (216) 252-8090 (216) 252-5607 (fax) Contact: Ken Ely

Baler Equipment Co. P.O. Drawer 1837 Portland, OR 97207 (503) 224-9059 Contact: John Hallinan

Florida Equipment and Machinery Company* P.O. Box 91115 Lakeland, FL 33804 (813) 859-4499 (813) 859-2662 (fax) Contact: Larry Marble

Baler Services & Equipment 130-18 90th Ave. Richmond Hill, NY 11418 (718) 441-3131 (718) 441-3032 (fax) Contact: Richard Magg

G.A. Findlay 7325 Cardigan Circle Atlanta, GA 30328 (404) 394-8544 Contact: Mac Findlay

B.E. Equipment P.O. Box 139 Quakertown, PA 18951 (215) 536-0700 (215) 536-2999 (fax) Contact: Bud Etzler The Brofield Group P.O. Box 63 Woodbridge, ON L4L lA9 Canada (416) 821-0140 (416) 542-3817 (fax) Contact: Jim Dutfield Cal-Quip Company 2201 E. 58th St. Los Angeles, CA 90058 (213) 232-l 101 (213) 234-4782 (fax) Contact: Ron Remlinger Colton Equipment P.O. Box 654 44 Resource Recycling August 1989

Gensco America Inc.* 2372 S. Stone Mountain-Lithonia Road Lithonia, GA 30058 (800) 268-6797 Contact: David Zelunka Gensco Equipment Co. Ltd.* 53 Carlaw Ave. Toronto, ON M4M 2R6 Canada (416) 465-7521 (416) 465-4489 (fax) Contact: Alan Zelunka Haron Metals & Equipment Co. 6380 Marcus Detroit, Ml 48211 (313) 923-4241 (313) 923-4287 (fax) Contact: Mark Haron Lederer and Associates Inc. 5000 San Jose Blvd., Suite 143 Jacksonville, FL 32207

(904) 448-5422 Contact: Frank Lederer Magnet Systems, Inc. 5265 Naiman Parkway Solon, OH 44139 (2 16) 349-0022 (216) 349-1288 (fax) Contact: Dave Calhoon Mayne Machinery Company, Inc. P.O. Box 8785 Waco, TX 76714 (817) 772-2033 (817) 722-2364 (fax) Contact: John Mayne McDonald Services Inc. P.O. Box 1192 Huntersville, NC 28078 (704) 892-7588 (704) 892-9106 (fax) Contact: Drew Sigmund Mohawk Machinery Inc. P.O. Box 156330 Cincinnati, OH 45215 (513) 771-1952 (513) 771-5120 (fax) Contact: Ken Franks N.W. Design & Equipment Co., In North 2020 Dollar Rd. Spokane, WA 99212 (509) 535-1044 (509) 535-7164 (fax) Contact: Tom Gilligan Perin Company 21053 Alexander Ct. Hayward, CA 94545 (415) 887-0500 (415) 784-0982 (fax) Contact: Tom Jacobs Rankinco Limited 4 Blades Close Leatherhead, Surrey KT22 7JY United Kingdom 3722 76390 Contact: Ian Rankin Recycle Systems P.O. Box 1691 Bellevue, WA 98009 (206) 453-9300 (206) 455-0727 (fax) Contact: John Callahan Reftech Inc. 420 Franklin St. Buffalo, NY 14202 (716) 691-8708

Chicago, IL 60680 (312) 829-2419 (312) 251-0791 (fax) Contact: Mike Stein

(416) 542-3817 Contact: Jim Dutfield

SEC MAT Equipment & Machinery

Weldon F. Stump Co.* Thomas P. Stevens Inc.

P. O. Box 296, Station A Weston, ON M9N 3M7 Canada (416) 244-0953 (416) 673-7187 -(fax) Contact: Thomas A. Parker

SeyCo Textile Machinery Company

Palatine, IL 60078 (312)359-0020 Contact: Tom Welsch

2569 Dixie Highway Pontiac, Ml 48055 (313) 674-4155 (313) 674-1240 (fax) Contact: Tom Stevens *

P.O. Box 7580

Tom Welsch & Assoc., Inc. P.O. Box 894

P.O. Box 3155 Station C Toledo, OH 43607 (419) 243-6221 (419) 243-7277 (fax) Contact: Joyce L. Stump

l

Distributes a used equipment circulation on a regular basis.

Crushers American Pulverizer Low speed single rotor breakers with capacities to 30 tons per hour for making nominal 1” product are available from American Pulverizer, as are high speed crushers for processing glass to 40 mesh.

Baler Equipment Company Models available are manual drop-in feed or large volume conveyor crushers.

Beltron Corporation Beltron Corporation manufactures glass crushers for residential, commercial, restaurant and municipal use.

Bruce Mooney Associates, Inc. Two portable REMGRO glass crushers are manufactured and marketed by Bruce Mooney Associates, Inc. Standard features include self-cleaning tail pulley to reduce belt damage, removable carryover trap to catch glass, enclosed conveyor underside, enClosed upper 2 1/2 feet of conveyor plus a safety flap, 35” entry height. The equipment crushes bottles through l-gallon size. Capacity range averages 3 to 4 tons per hour.

CEl - Continental Engineers, Inc. CEl Model 1600 glass crusher produces uniform cullet from all bottles through 4 liter.

Equipped with a 1 h.p. crusher and a 1/3 h.p. infeed conveyor. Crushes up to 20,000 12ounce beverage bottles per hour. CEI Model 3200 two-color glass crushing system features a 3 h.p. crusher, 3/4 h.p., infeed conveyor and infeed sortation table. It crushes up to 30,000 12-ounce beverage bottles per hour per color and is available with dual discharge conveyors. CEI Model 4300 heavy duty glass crusher with 15 h.p. drive system has infeed conveyor. Crushes up to 60,000 12-ounce beverage bottles per hour and is available with discharge conveyor.

Count Company Count manufactures impact and hammermill-type crushers with throughputs of 5 to 25 tons per hour.

Dens-A-Can

International,

CP Manufacturing Inc. Model GC 100 is a rugged and dependable machine that makes glass recycling simple and profitable. It plugs into a 110 volt single phase outlet and processes up to 14,000 12-ounce bottles per hour. It has a 1/2 h.p. crusher and conveyor motors and a 15” wide conveyor belt.

tant, shipped ready to use, it has a 3 ton capacity per hour. HMG-30/40 model are heavy duty and high capacity units made of wear resistant alloy with capacities to tons per hour. These are standard modification is possible to fit application Easy access for maintenance.

C.S. Bell Company

Dens-A-Can International, Inc.

Model HMG-16P glass crusher, from C.S. Bell Co., is a portable unit with conveyor, hopper and crushing chamber. Wear resis-

Dens-A-Can offers two glass crushers. crusher has a rotating steel drum breaker plate, adjustable for glass cullet s

Resource Recycling August

Recycling equipment company directory Contacts, addresses and telephone numbers are listed. Used ‘equipment companies, or “recycled” recycling equipment The used recycling equipment business is examined and a directory of dealers is provided. Recycling equipment listings Brief equipment descriptions are offered.’ Cover and inside graphics: By Bruce McGillivray of Portland, Oregon

Publisher Editor Associate Editor Technical Editor Contributing Editor Advertising Director Art Director Art Director Circulation Manager Circulation Assistant

Judy Roumpf Jerry Powell Meg Lynch Steve Apotheker Tom Watson Jean Hamilla Suzette DuCharme Jean Hamilla Sheila Payne Steve Payne

Resource Recycling® (ISSN 0744-4710) is published monthly by Resource Recycling, Inc., an Oregon corporation not affiliated with a trade association or other organizations. Copyright 1989 by Resource Recycling, Inc. All rights reserved. Use by permission only. Editorial and subscription offices are at 1218 N.W. 2lst, Portland, Oregon; mailing address is P.O. Box 10540, Portland, Oregon 97210; (503) 227-1319; FAX (503) 227-3864. Subscription rates: $42 par year. Outside U.S., add $9.00 per year. Single copy rate: $4.00. Resource Recycling is indexed by Environmental Periodicals Bibliography, International Academy at Santa Barbara, 800 Garden Street, Suite D, Santa Barbara, CA 93103 and by PAIS Bulletin, 11 West 40th Street, New York, NY 10018. It is abstracted and indexed in Environment Abstracts and available through Enviroline by ElC/ Intelligence, Inc., 48 West 38th Street, New York, NY 10018. It also is abstracted by the Institute of Scientific Information, USSR Academy of Sciences, Baltijskaya ul., 14, Moscow A21 9, USSR. Resource Recycling welcomes unsolicited manuscripts, but cannot return them without a stamped selfaddressed envelope. Letters may be edited due to space limitations. Second class postage paid at Portland, Oregon. POSTMASTER: Send address changes to Resource Recycling, P.O. Box 10540, Portland, Oregon 97210.

Waste paper processing equipment and supplies Aluminum can processing equipment Glass processing equipment Plastics processing equipment Ferrous and non-ferrous scrap processing equipment Reverse vending machines Conveyors Residential recycling collection equipment Used equipment dealers Miscellaneous processing equipment Additional listings

DEPARTMENTS Events Professional Services Directory Index of Advertisers Classifieds

Although Resource Recycling has tried to ensure that all the information presented here is correct, we

make no representation that this guide is absolutely accurate. Nothing appearing in the descriptions should be relied on in any specific instance where there is a possibility of loss or damage resulting from any publication statement, error or omission. We urge you to contact manufacturers’ representatives directly for equipment information.