The electronics recycling industry can be challenging but also rewarding, according to two speakers who addressed attendees of the 2015 Paper & Plastics Recycling Conference session “Adding Electronics Recycling Profitably.”
The 16th annual conference hosted by the Recycling Today Media Group took place Oct. 14-16 at the Marriott Downtown Chicago Magnificent Mile in Chicago.
Ben Harvey, president of E.L. Harvey and Sons, headquartered in Westborough, Massachusetts, shared his company’s experience expanding into electronics recycling after years of offering construction and demolition (C&D) recycling and residential and commercial recycling services.
Electronics recycling was a natural extension of E. L. Harvey’s commercial recycling services, Harvey said. “We want to collect everything that is going out the back door, except hazardous waste,” he added.
“It’s not a large business, but it is extremely important to our customer base,” Harvey said of the company’s electronics recycling services.
Originally, the company consolidated like electronics on skids, which were stretch wrapped and shipped to a demanufacturer. Harvey noted that at most E.L. Harvey and Sons received $20 per computer using this model.
The company began experimenting with disassembly, which allowed it to unlock additional value from some devices. “There is more value in parts than in whole units,” Harvey said, noting that a 5-gallon pale of circuit boards can be worth a couple thousand dollars.
He added that the company did not invest heavily in tools for its disassembly operating, noting that his crew prefers to use hammers and battery-operated screw drivers.
Miles Hartner, CEO of Dynamic Recycling, with locations in Wisconsin and Tennessee, offered suggestions from an ITAD (information technology asset disposition) and electronics recycling company’s perspective.
Hartner said MRFs (material recovery faciltiies) expanding into electronics recycling services should not expect to be paid for the devices they collect, with the exception of computers and most electronic scrap components once devices are disassembled.
To find success in this sector, he advised attendees to charge consumers for dropping off devices as long as it does not conflict with existing extended producer responsibility laws in their home states.
“Expect to be paid from recyclers at least on computers, laptops and servers,” Hartner noted in his presentation. He added that collectors should not expect to be paid for displays.
Hartner confirmed Harvey’s move into basic demanufacturing, saying, “You can get paid more if you disassemble computers, but there is the cost in doing it as well.” He added, “I would not recommend doing this for any electronics, except computers, unless you are going all in.”
Hartner also mentioned some industry trends that are affecting the profitability of electronics recycling operations. “Electronics keep getting lighter, so there is more industry capacity and less revenue when recyclers are paid per pound,” he said. Additionally, the precious metals content of electronic devices are declining, affecting the value of this material.
The 2016 Paper & Plastics Recycling Conference will return to the Marriott Downtown Chicago Magnificent Mile Oct. 19-21. Updated information will be available at www.RecyclingTodayEvents.com as it’s made available.