Three way partnership


Courtesy of Sweed Machinery, Inc.

Scrap Producers—Scrap Dealers—Sweed Machinery

1. Scrap Producers

Storing unwanted scrap for even a short time takes up valuable manufacturing space that could be used for production. For example, loose banding that customarily fills up a 30-yard dump box needing 160 square feet of plant space can normally fit into two 55-gallon drums after its chopped. Few companies object to converting wasted space to productive use.

Sweed equipment enables companies to run better-organized, cleaner, safer operations. Busy forklifts aren’t put out of commission because of entanglement in steel banding or from cut tires. Employees move more quickly and do their jobs more safely. Tools and materials don’t get lost behind scrap heaps. In short, Sweed Choppers increase productivity.

Reducing risk management costs is another important feature of Sweed Choppers. Everyone is interested in reducing on-the-job injuries. Common sense tells us that fewer accidents and fewer threats of litigation result in lower workers’ compensation insurance premiums. Steel strapping is an especially risky material to have around. Whenever it is allowed to collect in corners, or whenever it is moved or stuffed into a barrel or dumpster, its serpentine coils can ensnare or badly cut. With Sweed Choppers, scrap producers handle the banding only once. The choppers cut the coils into small pieces of steel that drop safely into a bin or drum. Manufacturers save money in two ways: reduced workers’ comp claims and fewer man-hours spent handling loose banding.

Successful businesspeople know that service is the name of the game. You provide matchless service to your customers, and they keep sending business your way. Companies that use on-site Sweed Choppers increase efficiency and productivity while reducing the risk of personnel injuries. By installing Sweed Choppers in their clients’ facilities, scrap dealers provide a service with noticeable, tangible benefits.

2. Scrap Dealers

“We should have done this a long time ago. We recouped our investment very quickly, and our profit margin has improved noticeably.” The scrap dealer was referring to a new trend in the metal-recycling business. Now, instead of begging clients to process scrap prior to pickup, recyclers are offering them a deal they can’t refuse. The scrap dealers buy Sweed Choppers and install them in their clients’ warehouses or factories. The increased value of the processed material pays for the machine. Dealers spend less time and money transporting, storing, and processing their customers’ scrap.

Metal dealers know that foundries pay more for uncontaminated ready-to-process material. With a Sweed Chopper doing on-site processing, scrap dealers can market the material directly from their customers’ docks. Banding is a good example. “A dumpster laden with loose banding is mostly full of air,” said David Sterwald, maintenance and traffic manager at Lorman Iron & Metal in Fort Atkinson, Wisconsin. “When our clients use a Sweed Chopper, we haul material that is much more compact.” David explained that his company has been providing Sweed Choppers to various companies for about 12 years. “We have installed a range of choppers from the 400 and 500 series,” he said. “It makes sense for us and our clients.”

Lorman Iron & Metal negotiates different deals with regard to choppers they provide for their clients. “Some give us the chopped material for free in exchange for the Sweed machine,” said David. He noted that they still pay for some material they pick up, but even so, the Sweed Chopper makes the operation easier and more profitable.

Recyclers who install Sweed machines in their clients’ plants get scrap processed just the way they want it. Sweed sales and engineering staffs work in consultation with the manufacturer and the scrap dealer to ensure that the installed chopper meets the needs of both parties.

David added that because Lorman Iron & Metal is a fast-paced operation, anything that simplifies the company’s procedures is appreciated. “Sweed Choppers do a good job for us and they are easy to maintain,” he said.

This approach has made Lorman an irreplaceable partner with the companies from which it purchases scrap. Meanwhile, the reduced handling has increased Lorman’s profits.

3. Sweed Machinery

When a scrap dealer installs a Sweed Chopper in a client’s plant, the dealer can increase the volume of his business without having to expand his own yard.

“We expect to see more and more metal recyclers providing choppers to their clients,” said Scott Ashpole, Sweed’s president. “This is truly a win-win situation, and we are glad to be a part of it.”

“It’s just more efficient for recyclers to process scrap where it’s being created,” he said. “Junk scrap is converted quickly into valuable, market-ready material at the customer’s location.”

“It’s a different way of doing business for us,” said Scott. “For more than 40 years, we have had a reputation for designing and customizing equipment to meet the needs of manufacturers. For a long time, we have produced machines that convert scrap to marketable material. Now, in a sense, we are creating partnerships among us, the manufacturers who produce the scrap, and the people who actually sell the processed material to the foundries.”

Scott noted that recyclers are approaching their customers in a variety of ways. “Some scrap dealers offer to finance the chopper for them and pay them more for the processed material than they are paying for their unprocessed scrap,” he said. “Then they deduct their customer’s payments for the chopper from the money they give them for the scrap, until the machine has been paid for.” Scott added that he is available to help scrap dealers negotiate deals with their customers.

Manufacturers are increasing productivity, efficiency, and on-the-job safety. Scrap dealers are increasing their profits by providing Sweed machines to their clients. “Sweed is proud to be an integral part of this new partnership,” said Scott. “It’s a new way of doing business, a new way or working together for mutual success.”

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