NEL Environmental provides scrap management services to manufacturers

Michael Martin used his 25-plus years of experience in the scrap industry to launch NEL Environmental, a St. Louis-based company that works with manufacturers to manage their scrap assets, in mid-2019. He launched NEL’s parent company, Nitram Enterprises, in May 2017.

“I formed this company because I realized that manufacturers are not conducting process, transportation or safety audits to be sure that the best program is in place,” Martin says. “My company will improve every efficiency for small to large manufacturers. We find the best solution for everyone, especially those companies who cannot afford a full-time expert in the scrap industry to manage/facilitate and those who are looking for the best value for their scrap program and sustainability efforts.”

NEL Environmental offers turnkey solutions for facility revenue waste streams and on-site audits of their existing scrap management programs.

Martin says NEL works with manufacturers to ensure they are getting the best return from their scrap management programs. In some cases, that means continuing to work with the scrap company that currently services that account but with some tweaks to the program. In others, it involves putting requests for quotation (RFQs) out for bid.

“The goal is not always to replace the scrap dealers,” he says. If incremental improvements can be made based on NEL’s evaluation of existing programs, the company will work with the vendors to do so.

NEL essentially becomes the representative for the manufacturer’s scrap management program, taking that responsibility off the manufacturer, which may not be able to dedicate staff to ensure the program operates as it should and that contract terms are being met.

“No matter how proactive a company’s program is, there is a disconnect between the person managing the program and the accounts receivable person,” Martin says. “The bigger the company, the bigger the disconnect is. Our company audits all transactions to make sure that we are getting market pricing. There  is a lot of data watching.”

NEL is paid based on the measurable program improvements that are realized, Martin says. He adds that these improvements generally take the form of improved pricing for the scrap metal or savings that result from changes to the way metals are handled.

The company has two national accounts: one with a leading heating element manufacturer and one with Fike Corp., a Blue Springs, Missouri-based manufacturer of explosion protection, pressure relief, pressure activation and fire alarm and suppression solutions. The company has manufacturing facilities in the United States, Belgium, Canada and the U.K., and NEL handles all their scrap management programs. Martin says by contracting with NEL, Fike was able to eliminate a position that was dedicated to cutting scrap to fit the collection containers supplied by a previous recycler because NEL was able to pair the company with a scrap processor that offered equipment that better fits its needs.

In addition to these accounts, Martin says the company also has a handful of smaller, local accounts in the St. Louis area. He estimates NEL will manage roughly 1 million tons of scrap, primarily nonferrous metals, in 2020.

COVID-19 has affected NEL’s new business development, which requires Martin to walk the floors of interested manufacturing facilities to assess their scrap generation and management. However, he is hopeful for the future.  

Martin says, “I have a great passion for this industry and for helping manufacturers further programs.”