Scrap handlers play a vital role in the processing of material at a scrap yard. Some recyclers even go as far as to call them the middle man of their operations. "The scrap handler gets the material off the truck, loads it into the equipment and, once it’s been processed, gets it back to a mode of transportation to get it out the door," says Eric Verman, president and COO of Consolidated Scrap Resources Inc., York, Pa.
A scrap handler’s job may be simply to move material from one area to another, but if the machine is old and not running at optimum levels or is prone to breakdowns, it affects the entire flow of scrap through the yard. Loads coming off barges and rails will get backed up, shipments going out will be delayed, and the shredder and other equipment will not work to full capacity. Recyclers also could have to worry about being charged penalties by their suppliers and customers for not working within their specified timetable.
To avoid these kind of situations, certain criteria can help recyclers determine when to move on to a new scrap handler or whether it’s better to hold on to older machines and move them to less critical applications within the yard.
OUT WITH THE OLDWhen recyclers should trade in or sell their scrap handlers really depends on the number of machine operating hours, production requirements, capability and desire to service an older machine and how their businesses and job sites may be changing, necessitating different or additional equipment, says Steve Brezinski, heavy equipment product manager, Terex Fuchs, Southaven, Miss. The most common use for a scrap handler on a site is transferring material within the yard, including loading and unloading trucks and, in some instances, railcars or barges, according to Brezinski. Other uses include feeding processing equipment, such as shredders or balers, as well as sorting, shearing or separating scrap material.
Glassport, Pa.-based Tube City IMS uses a total of 125 scrap handlers for common applications in its 65 various locations. The company also uses
Rule Breakers |
The key to scrap handler longevity is maintenance, recyclers say. If recyclers do not take proper care of their scrap handlers, it is going to cost them in the long run. Some of the common rules recyclers tend to overlook include: 1. Using a scrap handler only for its intended applications. Some recyclers will use scrap handlers for pulling rail cars, which can add to the wear and tear on the machine. 2. Turning off the machine when going on break. "With today’s high fuel prices, leaving a machine idling becomes a costly mistake," according to David Coslov, vice president of maintenance, Tube City IMS, Glassport, Pa. 3. Factoring idling time into a scrap handler’s preventive maintenance (PM) schedule. "PM is based on hours idling, so you will have to incur the cost of performing two or more additional PMs per year," Coslov says of operators who leave the machine idling while on break. 4. Excavators are not scrap handlers. Many people try to adapt excavators to do the job of a scrap handler, but it can cause stress on the excavator, some recyclers say. |
Consolidated Scrap Resources’ scrap handlers also feed the shedder and load and unload scrap as well as stockpile material. This York, Pa.-based company maintains five facilities and uses 13 scrap handlers companywide.
Recyclers usually determine their replacement schedules based on the manufacturers’ specified operating hours as well as the requirements stated in their supply and customer contracts. "Around 10,000 to 15,000 hours, machines will require some level of rebuilding of major components, including engine and hydraulic systems, and thereafter recyclers will likely consider selling, trading or hanging on to the machine during the 15,000- to 20,000-hour time frame as it enters its second life, depending on their individual business philosophy and market conditions," Terex Fuchs’ Brezinski says.
If recyclers are repairing components of machines more often than their maintenance schedule dictates, they may consider trading these units in or moving them to a lighter application.
Tube City IMS has done both depending on its internal needs and what machines the company has available in house. The company trades in scrap handlers because, according to David Coslov, vice president of maintenance, Tube City IMS, "Used equipment has a lot more value than it did five or six years ago, so we get a better deal by trading it in."
Other times it is more cost effective for recyclers to move an older scrap handler to a less stressful application. "We either use it as a backup or put it in a facility that only runs 2,000 to 3,000 hours a year," Coslov says.
Consolidated Scrap Resources has yet to trade in one of its scrap handlers, according to Verman. "We send our older cranes to locations that aren’t as needy, such as the feeder yards where the machine isn’t running consistently eight to 11 hours a day," Verman adds.
BUYING VS. LEASINGWith the U.S. dollar losing its strength and a lot of equipment leaving the country, recyclers say now is a good time to purchase used equipment.
Coslov prefers purchasing equipment to leasing because leasing has very difficult return conditions, he says. "Nine out of 10 times it’s cheaper to buy a machine out [at the end of its lease] vs. returning it and having to
Transportation Woes |
Container availability is a growing issue in the scrap industry, according to Ben Abrams, executive vice president of Consolidated Scrap Resources Inc., York Pa. "I’ve been hearing in the marketplace that people are making bookings four to six weeks in advance," Abrams says of container shipments. Since recyclers started shipping ferrous scrap via container in the last year, "the cost of shipping overseas has doubled to more than $1,500 a container," Abrams adds. Ocean-going shipping isn’t the only mode of transportation that’s experiencing a shortage. Recyclers say they are also seeing a shortage of rail cars and barges. A typical timetable to unload a rail car was two days, but in light of the tighter availability, this time frame might have increased, says David Coslov, vice president of maintenance, Tube City IMS, Glassport, Pa. To combat these challenges, many recyclers have become more creative with transportation. Tube City is more involved in container loading for scrap going overseas and has developed relationships with rail and barge companies through its transportation department. |
He also says that purchasing gives recyclers better control over their cash, doesn’t include a high buyout at the end of the term and gives recyclers flexibility when it comes time to unload the machine.
Consolidated Scrap Resources (CSR)also prefers to buy its scrap handlers because most leases are only five years, and its oldest crane is currently 14 years old. "We think the natural life of a crane is more than the typical lease term," says Ben Abrams, CSR’s executive vice president.
But sometimes a company’s capital availability doesn’t allow it to purchase a scrap handler. Today, the average price of a scrap handler, depending on size and machine type, can cost anywhere from $350,000 to $800,000. In some cases, leasing may be more cost effective for a company. "For instance, if you have a large fleet of cranes, it’s a way to manage your fleet," according to Abrams. "Having a program in place where you turn over a crane every few years just makes things easier," he says.
On the flip side, leasing also offers benefits to smaller processors who may not have the credit to borrow money to buy a scrap handler. "Some people might get a purchase money loan from the company that sells cranes to pay for the crane, and that’s less cash the dealer has to lay out," Abrams says.
A SECOND LIFE"Maintenance is crucial for maintaining the resale value of a piece of equipment and minimizing the cost at time of return if leasing," Coslov says. It is also the key factor for keeping the machine running for a long time, which is why recyclers often have strong maintenance programs.
Consolidated Scrap Resources tries to make sure its scrap handlers are serviced every 200 to 250 hours, says Dan Dattisman, facility manager responsible for crane maintenance. "We have a daily preventive maintenance schedule and are also very picky on the type of grease and oil we use," Dattisman says.
But there is only so much maintenance a recycler can do before the engine starts to die and the cylinders and bearings start to go. When this happens, recyclers turn to rebuilds to increase a scrap handler’s life expectancy.
Tube City IMS typically plans two rebuilds for each scrap handler: one at the 15,000-hour range and the other at the 25,000-hour range. The 15,000-hour rebuild is a minor one, which includes work on cylinders, bushings and bearings as well as engine replacement, Coslov says. Coslov refers to the 25,000-hour rebuild as a second-life rebuild because it is more extensive, including engine replacement, pump replacement, swing bearing replacement and boom reinforcement.
After this point, if the machine looks like it might need another rebuild, recyclers are better off just buying a new one, Coslov says.
The author is assistant editor of Recycling Today and can be contacted at kmorris@gie.net.
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