SEARCHING TO DESTROY
Protecting and destroying the information entrusted to them comes first while the market value of shredded paper comes second, a panel of speakers from the confidential shredding industry told attendees of the Paper Recycling Conference & Trade Show.
Nick Wildrick, co-founder of Shred First LLC, Spartanburg, S.C., urged those entering the field to think first of the value of the shredding service being offered and not of the tons of paper that can be recovered in the process. "Everything we sell is about security," he said.
Wildrick presented a business model based on a "per-container" charge that may seem low-yielding (both in dollars and in pounds of paper) when taken alone, but when multiplied by 1,000 bins presents a scenario yielding $900,000 in revenue before the value of the shredded scrap paper is even considered.
Chris Ockenfels, manager of the Document Destruction and Recycling Services (DDRS) subsidiary of City Carton Co., Iowa City, Iowa, also noted that the commodity-based model of the recycling industry does not always align with the service-and-security-based model of the document destruction industry.
Confidential document destruction firms have the additional responsibilities of facility security, employee background checking and chain of custody agreements for the documents they handle, Ockenfels noted.
Increasingly, shredding firms have to meet shredded particle size specifications that may even negatively affect the value of their scrap paper product. For security reasons, they must often shred entire files—folders, paper clips and plastic report covers included—which can also negatively impact the value of their scrap paper.
In response to complaints from paper mills because of these practices and the potential downgrading of such material, Wildrick said flatly, "I don’t care." He noted that the first duty of a shredding firm is the protection and destruction of the information.
Robert Johnson, executive director of the National Association for Information Destruction (NAID), Phoenix, Ariz., urged recyclers who also offer shredding services to consider using NAID as a resource to help ensure that they follow best industry practices and stay in touch with key legislative issues affecting document destruction firms.
The Paper Recycling Conference & Trade Show occurred June 26 to 29 in downtown Atlanta.
MTI CORP. ACQUIRES METECH
TI Corp. of Delaware has acquired electronics recycler Metech International, based in Maple-ville, R.I.
According to a press release, Metech will continue to operate under its current name and will have access to additional resources to support sustained growth.
"Metech has the potential to become the leading e-waste recycling, asset management and precious metals recovery company in the United States," Sam Advani, president of MTI Corp., says. "The Metech management team has demonstrated great leadership, integrity and honesty during the course of their stewardship, and we look forward to working with them as we embark on a bold and ambitious plan for the company."
Metech will consolidate precious metals services to its Gilroy, Calif., plant, which will result in some employee lay offs, according to the company’s Jim Gardner. Additionally, the Rhode Island plant will relocate to Worchester, Mass., and will focus on electronics recycling. Metech expects these changes to streamline operations, facilitating growth.
Gardner says Metech hopes to grow by forming formal partnerships with companies that agree to adhere to its Accountable Resource Management (ARM) protocols and possibly by acquisition of electronics recycling companies or related businesses. "The ARM protocols are formalized and are based on mitigation of risk for our customers and co-workers and on ethical businesses practices," Gardner adds.
At the time of the sale, John Koskinas, who served as Metech’s president, left the company.
NAWBO RECGONIZES SECURE ECO SHRED
 Mayberry, Kalapos and Rogers |
Secure Eco Shred, a document shredding company based in Farmington, Mich., has been awarded the 2005 National Association of Women Business Owners (NAWBO) New Venture Award.
The company’s Chicago mobile shredding operations received the award, which recognizes a business or venture launched in the past two years that demonstrates creativity, good business acumen, strong marketing and that is willing to take risks.
"We are very honored that NAWBO has selected Secure Eco Shred over all the other applicants for this prestigious award," Kristina Kalapos, president of Secure Eco Shred, says in a press release.
Secure Eco Shred received the award at the annual NAWBO board installation dinner June 23.
In addition to its Chicago and Farmington locations, Secure Eco Shred has locations in Brookfield, Conn., and in Grand Rapids, Mich.
SDB
MAGAZINE GARNERS NATIONAL AWARDSecure Destruction Business magazine and its staff have been honored with a national magazine award recognizing the publication’s graphic design quality.
The American Society of Business Press Editors (ASBPE) presented SDB magazine with a 2004 Bronze Award in the New Publication Design category. Art Director Karen Angus led the design effort.
Key features of magazine’s design have included the use of professional photography and a consistent, legible design palette.
The award was presented during ASBPE’s annual awards banquet in mid-June, which took place at the Rock & Roll Hall of Fame and Museum in Cleveland. Editor Brian Taylor accepted the award on behalf of the SDB staff.
Secure Destruction Business is published by GIE Media Inc., Cleveland. The company has been producing award-winning business-to-business publications for 25 years, including Recycling Today, Golf Course News, Lawn & Landscape and Pest Control Technology.
GIE Media, which can be found online at www.giemedia.com, also produces companion conferences, interactive media and reference products.
NAID CITES TEXAS LAW AS MORE EFFECTIVE FOR COMBATING I.D. THEFT
Businesses in Texas will have to destroy materials containing personal information before throwing them away under a new law that goes much further than a recent federal mandate.
The Texas law, which takes effect Sept. 1, requires businesses to destroy a broad range of discarded personal information that could be used to commit identity theft, including social security and other government-issued identification numbers, financial account numbers, birth dates and e-mail addresses.
Unlike the state law, the federal rule only requires businesses to destroy credit reports or materials containing information derived from credit reports. That federal disposal rule, which went into effect in July, stems from the federal Fair and Accurate Credit Transactions Act, or FACTA.
"The federal rule was a great first start," says Robert Johnson, executive director of the National Association for Information Destruction (NAID). "It required all businesses, not just banks, to guard the credit information of their consumers. Unfortunately, credit information isn’t the only way into a person’s identity."
Businesses that fail to comply with the Texas law can face fines of up to $500 per record.
"On any day, American businesses casually toss out more personal information than in any of the sensational stories we read about," Johnson says, referring to the data privacy breaches of ChoicePoint and Nexis/Lexis.
In response to these high-profile breaches, Johnson says federal lawmakers are appropriately considering additional legislation that would restrict the transfer and sale of personal information. He believes any such legislation should also require such information to be protected when it is discarded.
The Texas law, HB-698, was signed by Gov. Rick Perry June 18.
D.C. SELECTS LSI FOR ASSET DISPOSITION
The District of Columbia Office of Contracting and Procurement has awarded an exclusive contract to Liquidity Services Inc. (LSI) to handle the inventory, appraisal, sale and disposition for all surplus property owned by the district.
LSI, a Washington, D.C.-based provider of comprehensive asset recovery services for businesses and the public sector, will host open and competitive sales of the district’s surplus property on its online auction marketplace at www.Liquidation.com. According to a press release from LSI, the auction sales are expected to generate increased rates of return on surplus inventory while improving data tracking and financial oversight of disposition activities.
The arrangement with LSI will streamline the asset recovery process, creating a valuable revenue stream while also meeting the district’s criteria for transparent tracking and real-time reporting on transactions involving surplus property.
LSI will also handle all operational and administrative tasks, including inventory reconciliation, creation and launch of auctions, buyer assistance, shipping and logistics, payment collection and refurbishment and/or recycling of items when appropriate.