Since first beginning operations in early 2018, Pompano Beach, Florida-based Coastal Waste and Recycling has been making significant investments in its mixed waste processing infrastructure.

With three newly constructed mixed waste material recovery facilities (MRFs) located in Broward County, Palm Beach County and Martin County, the company has positioned itself to capitalize on favorable conditions in the southeastern Florida market.

“We look for markets, in general, where there are a lot of large companies, high amounts of population growth or just existing large populations. [This is] because there’s always construction, reconstruction and demolition, and in areas like southeast Florida … there’s nowhere for [the resulting waste] to go,” says Brendon Pantano, CEO of Coastal Waste and Recycling.

“Rebuilding is a major part of the economy down here, and Florida is one of the few states that has overall construction waste percentages that are [roughly] 35 to 40 percent, and it has been like that for decades,” he adds.

According to Pantano, these factors—as well as limited landfill capacity in the area—made southeast Florida an obvious location to construct and operate its mixed waste processing facilities.

FINDING THE RIGHT FIT

The start of Coastal’s mixed waste operations began with the opening of its first facility in Pompano Beach, known as “Coastal Four.” The company obtained a permit and developed construction plans to build the Class III MRF in August 2018 with the intention of processing construction and demolition (C&D) debris and mixed commercial recycling.

Given the company’s varying waste streams, large volumes and high growth ambitions, Pantano says the facility needed a dynamic system to successfully process both lightweight and heavyweight material.

“A lot of times that [shift in material] can pose a challenge to typical C&D processing systems because they’re not designed to flow lightweight cardboards, as well as construction materials and commercial recycling byproducts. So, it was a challenge to find [the right] screen,” he says.

In addition to handling Coastal Four’s diverse waste stream, the company needed screening technology capable of separating a heavy flow of aggregates.

“Being in Florida, the amount of fines and concrete in our material versus say a facility up North is [substantially larger] because everything down here is built with concrete block [rather than wood]. So, you end up with a lot of dirt and broken-down concrete,” Pantano says.

To aid in his search for a uniquely robust screening system, Pantano reached out to Ian Levasseur, the vice president of Quebec-based Sherbrooke OEM, for guidance. Levasseur ultimately recommended a General Kinematics (GK) Finger-Screen 2.0 primary screen to meet Coastal’s requirements.

“We needed a screen that had a longer stroke capable of flipping and turning waste as it travels down the screen to ensure that smaller fractions of material didn’t surf their way into the larger fraction sorting lines,” says Pantano. “There aren’t many screen options when it comes to that throughput and material diversity, so the 2.0 was an obvious fit for us.”

After some initial discussions with the Crystal Lake, Illinois-based equipment manufacturer, Coastal also decided to invest in a GK Rod Deck as the secondary screen and a GK Single Knife De-Stoner Air Classifier.

THE SCREENING PROCESS

At Coastal Four, Pantano says its processing operations begin with the Finger-Screen 2.0, where the machine separates the raw mixed waste into two lines.

“[With] the Finger-Screen 2.0, the whole objective there is to create a size separation. So, anything larger than 8 inches in size goes up to the A line for manual picking, and anything smaller than 8 inches goes over to the B line, which is a little more automated with some other machines to work through smaller material,” says Bob Huffer, team east regional sales manager for GK.

“By splitting the material flow, typically you see a 60-40 split on average, meaning 60 percent of the material stays with the A line and 40 percent, more or less, goes to the B line,” Huffer says.

According to Huffer, this allows the facility to utilize different technology to do a more thorough sorting process on the individual lines.

On the A line, Pantano says between eight to 12 sorters will pick through concrete, wood, cardboard, plastic, ferrous and nonferrous metal, and yard waste. Meanwhile on the B line, the 8-inch-minus material will first run through a magnet to remove ferrous metals then head to the secondary Rod Deck screen.

From there, the secondary fines screen will remove any material smaller than three-quarters of an inch to one inch. “[This material] is primarily a lot of the dirt and fines that’s just taken out and removed [from] the system to be used for landfill cover. Then what you’re left with is a fraction that is minus eight plus one, and that is then sent to the de-stoner, [which] separates the rock and the heavies,” Huffer says.

Utilizing air separation to separate the materials based on density, the de-stoner will blow away the light fraction, leaving behind the aggregates, crushed concrete, broken concrete, asphalt and clay tiles.

“The de-stoner is a workhorse in there, and [Coastal’s] process really separates a lot of that aggregate material out,” says Huffer. “The remaining lighter materials, the minus eight plus one, just goes off the end of the de-stoner and goes to landfill, [whereas] with the aggregate fraction, Coastal now has a commodity that they can use and sell.”

MEETING EXPECTATIONS

Having worked in the waste industry his entire life, Pantano says the Finger-Screen 2.0 system is the only screening technology he’s witnessed capable of processing Coastal Four’s throughput and material composition.

“The amount of material agitation [with the 2.0] just leads to a good presentation of whatever is on the respective line. So, when you get the material on the A line, because it has that long stroke and that big active movement, you don’t end up with a piece of plywood covered in dirt that kind of skated down he line,” he says. “With some of the other screens that I’ve used, you get that effect where there’s a piece of cardboard and it’s a single-deck screen, so it doesn’t have the ability to flip it over or turn it. So, you end up having materials right on top of other materials because there’s not enough movement to get it to shake off.”

On average, Pantano says the current system is processing roughly 100 tons per hour, but that it can vary from anywhere between 90 to 105 tons per hour.

“[The system] is physically capable of, I suppose with the right conditions, up to 125 tons per hour. But, I’m sure we have hours where we do 200 tons per hour and we have an hour where we do 75 tons per hour; it’s just so dependent upon the material you put through,” he says. “The 2.0 is a monster. I mean, it is just a massive, massive piece of equipment. So, having a site that does that kind of volume is not typical. But I would say for any site that we’re going to have in that 800 to 1,000 tons per day, per shift range, the 2.0 would be our choice.”

This article originally appeared in the May/June issue of Construction & Demolition Recycling magazine. The author is the assistant editor of Construction & Demolition Recycling and Waste Today magazines and can be reached at hrischar@gie.net.

Trucks are the backbone of waste management service. While these workhorses of the road allow operators to do their job day in and day out, there comes a time when it makes more sense for a company to retire a waste vehicle than to keep it in operation.

When the pandemic hit last year, plenty of waste management companies began looking at their assets to determine what costs they could save on. One of the biggest was fleet management, says Matthew Callier, the director of national accounts for Big Truck Rental.

“The pandemic slowed down the pace of collection,” Callier says. “So, companies have been able to reassess their fleet and what they could potentially move.”

Big Truck Rental, based in Tampa, Florida, has vast experience in helping companies with their fleet management needs through its rent and rent-to-purchase options. The vehicles in the company’s fleet include front loaders, rear loaders, side loaders, roll-offs and grapple trucks.

Through the company’s experience providing vehicle solutions for its customers, Callier says he has identified several benefits to retiring a truck at the proper time.

Outside factors

There are a few variables that impact how long a waste truck can remain operational. This includes the preventative maintenance strategy employed by the company, driver behavior, the type of truck used and geographic environment, Callier says.

“Typically, companies run side-load and front-load trucks for 11 years, rear-load trucks can run for 15 years and roll-off trucks last for 16 years [on average],” Callier added.

While these are averages, how the truck is handled by its drivers plays a crucial role in determining its lifespan. If the operator isn’t properly trained, they could get in the habit of making costly mistakes like excessive hard braking or taking sharp turns. These behaviors can put excessive wear and tear on the truck and the various moving parts that allow it to operate, Callier says.

Another thing that needs to be considered is the type of truck being used. For example, a side-load truck typically sees more action than a roll-off truck, Eric Voss, the company’s vice president of sales, says.

“A side-load truck could have hundreds of stops a day versus a roll-off truck which may pick up anywhere from six to 16 containers a day,” Voss says. “Plus, these have a lot fewer moving parts compared to a side-load truck.”

Signs it is time to say goodbye

Some signs companies should look out for when deciding whether to retire a truck include large component failures and increasing maintenance costs.

“Usually, you’ll start to see some of this stuff happen in the fifth year of operation,” Voss says. “If you haven’t taken diligent care of your vehicle, you could see that come earlier. Your variable maintenance costs become more sporadic if you don’t take care of your fleet.”

A straightforward way of tracking whether an operator should retire a truck or not is looking at its hourly costs, Callier says. Once the costs outweigh the hours the company is running the truck, it is time to consider retiring it.

“That’s the major factor that a company should start to consider—whether it makes sense to keep putting money into an older truck or retiring it and putting a new truck into the fleet,” Callier says.

The risks of hanging on

While it may seem to make sense to push a truck to its limits to get the most from the investment, Voss says there are potentially severe consequences to doing so. Not only could profits be impacted, but reputation and even legal issues could arise if a truck fails in the field.

“One downed truck could put you behind your routes for a day or two while you’re servicing those residents.” –Matthew Callier, director of national accounts, Big Truck Rental

“The biggest issue is if you have trucks in the field breaking down, and then you’re not completing routes,” Callier says. “Then you’re scrambling at the end of the day because you have trucks that should have been retired, and now you’re [doing what you can] to complete those routes. It’s a waterfall effect. One downed truck could put you behind your routes for a day or two while you’re servicing those residents.”

While the financial consequences of running a truck too long could hurt a company’s bottom line, there are other consequences to keeping a truck in service longer than its lifespan allows, including legal issues. For example, municipalities could fine a company for liquidated damages if the waste management company fails to complete a route, even if a truck breaks down. Additionally, there is the potential for litigation following an accident if operators keep a truck on the road when it should have been retired.

By being proactive, operators have the potential to remove a number of variables that can lead to problems and negate worst-case scenarios in the process.

Maintaining the fleet

While goodbyes are never easy, Voss says there are a few ways a company can maintain its fleet to get the most value out of it. The main factor in maximizing the life of a truck is having a good workplace culture.

“The best way to maintain your fleet is making it a part of the culture,” Voss says. “Instilling pride throughout the organization in maintaining trucks and giving employees the tools and knowledge to maintain the trucks is extremely important.”

A well-crafted preventive care program is one of the ways Voss suggests a company reinvest in its employees and vehicles. Additionally, developing safety programs for operators can ensure they properly handle the equipment while on the road, Voss says.

Companies can also use telematics and other software to track what parts of their trucks need to be inspected, repaired or replaced. Companies can increase fleet efficiency by always knowing what work needs to be done when on their trucks.

Building a fleet economically

Companies looking to invest in new fleet equipment without breaking the bank can do so by looking into lightly used trucks. Additionally, renting trucks can help companies in a variety of ways, Voss says.

“Haulers growing their business through acquisition exercise rental to maximize their internal rate of return (IRR) on their cap ex. Rather than tying up their capital in new trucks, they will rent a portion of their fleet while putting that capital towards acquisitions for a higher IRR,” Voss added. “Nationwide haulers would benefit from renting because it keeps the company’s existing fleet in a rotation. This helps companies keep track of maintenance and not have trucks unused in their fleets.”

The money saved through renting can also be used to help the company grow its more profitable parts of the business.

“There are a lot of times when a contract requires all-new trucks,” Callier says. “However, when you’re talking about a company looking into getting a new commercial route and it doesn’t have to be a new asset, taking a look at a used truck can save up to $40,000 that can be put back into areas of the business that are generating a higher-yielding hurdle rate.”

The author is the web editor for the Recycling Today Media Group and can be reached at akamczyc@gie.net.

Small-business owners, particularly in the cyclical recycling sector, often demonstrate a preference for paying cash for equipment, vehicles and even large-scale capital expenditure (capex) projects.

Presenters at an ISRI2021 session titled “Financing to maximize growth” examined some of the pros and cons of accessing credit for capex needs and delved into the various types of financing firms operating in the capex lending arena can provide. ISRI2021 was an April online event organized by the Washington-based Institute of Scrap Recycling Industries.

For waste and recycling companies, there is no “one size fits all” approach to borrowing money, the presenters seemed to agree. Rather, a variety of factors can influence when it is best to approach a commercial bank, seek a specialty leasing or financing arrangement, or dip into cash reserves.

One tree, different branches

The session was hosted by Pittsburgh-based Vision Financial Group Inc., whose Director of Sales Kevin Canepa offered an overview of four different types of lenders or financing advisory firms who can offer different terms and services to waste and recycling companies seeking to finance new trucks or equipment.

Canepa said Vision Financial arranged some $40 million in financing for waste and recycling company owners in 2020. That figure gives the firm a growing presence in the sector, but Canepa also noted that in the United States corporate sector in 2019, “An estimated $900 billion of equipment was financed through loans, leases and lines of credit.”

National, regional and local commercial banks remain sources of financing. While a bank may be able to offer a competitive interest rate, Canepa said they also tend to require covenants that can establish “certain criteria” tied to a company’s balance sheet and financials.

“Banks are going to get a little closer into your business regarding what you’re doing and how you’re doing it to make sure that their assets are covered,” said Canepa. This can be hard to contend with for any independent-minded business owner, but can be especially problematic in the cyclical recycling sector, where quarterly revenue can plunge based on falling commodity prices and declining scale traffic.

Non-bank options include the captive financing arms of some of the largest equipment companies, such as truck, excavator and loader manufacturers. These companies can offer “very attractive rates,” said Canepa, although he implied a buyer must be tuned in as to whether some of the “saved” financing costs are worked into the upfront cost of the equipment.

Waste company owners also can seek out an independent broker to “shop” for them for the best financing terms. Such brokers may ultimately go to a bank, an independent leasing company or a captive financing arm to find the best rate. “Typically, they can get you a good deal,” said Canepa.

Independent leasing companies, such as Vision Financial, also serve waste and recycling firms. Canepa described Vision as a “niche market player,” but he said other independent leasing firms can be larger “generalists.” Such leasing firms can arrange financing in amounts from $10,000 to $1 million, said Canepa.

Understanding ups and downs

After 10 years in the scrap business, Brandon Roznovsky, CFO of Brenham, Texas-based Brannon Industrial Group, understands that sector’s preference to both save cash and to spend it on equipment purchases to avoid debt obligations.

However, Roznovsky said the low-interest rate environment combined with tax incentives available in 2021 “make it a pretty good time to borrow.” (For more on the tax incentives, see the sidebar “A section worth browsing.”)

Brannon, which operates a scrap yard under the Premier Metal Buyers brand, has worked with a commercial bank in its region but also has experienced benefits from independent leasing arrangements.

In the commercial banking sector, “We’ve encountered some lending folks who really like our story and find the opportunity exciting, [but] then they get a little uneasy when they see our P&L [profit and loss statement] occasionally looks like an EKG monitor,” said Roznovsky.

Adding that “metal recycling has its own nuances that make it tick,” he continued, “If the lender understands them, it makes life a lot easier; things go faster and smoother. A lender who does not understand the ebbs and flows of the metal market adds a lot of risk to an organization. It’s imperative you have [access to] someone who understands you and your business.”

A third-party or independent leasing firm’s ability to move quickly also was identified by Roznovsky as a critical benefit. “Competitive terms are important, however, speed and ease of business with a lender—and their consistency—necessarily outweigh shopping for the lowest interest rate on every deal,” he stated.

Calculating that 25 basis points is “only about $10 per month” on a $100,000 loan over five years, Roznovsky said, “Depending on the opportunity and circumstances, a small premium may be well worth getting the deal done faster” in the fast-paced and volatile scrap business.

Market fluctuations and business opportunities and challenges that come and go quickly “really force us to be dynamic,” said Roznovsky of Premier Metal Buyers’ situation. A lender that can provide timely service “is certainly an asset to the business,” he commented.

As waste firms increasingly collect, process and ship secondary commodities with changing values, they too may need to find financing partners who understand the up-and-down nature of a recycling sector balance sheet.

Projecting a lifespan

In addition to interest rates, bank covenant considerations and other costs of borrowing, waste and recycling company owners also make financing decisions based on the specific equipment being leased or purchased.

When engaging in a limited term project, said Roznovsky, the equipment rental option remains viable. “Rentals are practical for projects or for when equipment is down,” he commented.

Canepa cited forklift trucks as an example of equipment that even deep-pocketed corporations would prefer to lease rather than buy. “Large companies do not like to use their money to buy forklifts, for instance, that they know they’re going to get rid of in five years,” he remarked. “And, they don’t want to have the hassle of reselling that equipment on the used equipment market. A leasing company can take care of that for them.”

There also is an opportunity cost aspect to conserving cash rather than paying upfront for a plant and equipment. “Finance experts generally recommend that you have a cash reserve of three to six months,” said Canepa. The wisdom of having this reserve can be seen in light of the circumstances of restaurant owners and others affected by COVID-19-related restrictions.

“Competitive terms are important, however, speed and ease of business with a lender—and their consistency—necessarily outweigh shopping for the lowest interest rate on every deal.” –Brandon Roznovsky, CFO of Brannon Industrial Group

Having that cash on hand “demonstrates financial stability, allows you to meet bank covenants for liquidity ratios and financial statements, and it allows you to look at opportunity costs,” said Canepa.

As an example, he continued, “If I were to pay $300,000 for [a] car crusher today, what’s the opportunity cost for not having that cash, versus leasing it and paying $10,000 a month [and] getting an immediate cash return on your investment?”

Such cash may be needed if an acquisition opportunity arises, or the chance to buy a parcel of land that has come onto the market adjacent to one’s transfer station or scrap yard opens up.

As an example of when a firm may prefer to spend cash, Roznovsky pointed to “non-titled assets,” such as a hand-held metals analyzer unit. He said Premier Metal Buyers also is “more inclined to [take] the cash route on items with shorter lives.”

At the other end of the spending spectrum, Mike Taranovich of Bradenton, Florida-based Proterra Recycling Systems Inc. said certain financing and leasing options can be critical when undertaking a larger material recovery facility (MRF) project.

Taranovich says he works with firms such as Vision Financial so he can prepare an overall budget for the project that includes financing “so I can offer a complete turnkey quote with financing included.”

Adds Taranovich, “Even my biggest customers like to use a Vision Financial-type company” rather than a regional bank, as it likely entails a faster timetable.

He says lender knowledge on the MRF sector is “a huge plus.” Says Taranovich, “I’ve dealt with [banks] who didn’t have a clue what a cardboard screen was or an optical sorter, and it just really slows down the entire process. By dealing with people who know the market, I don’t have to re-educate [a lender] every time, and that speeds up the process.”

This sentiment also applies to smaller projects, not just multimillion-dollar MRF retrofits, said Taranovich. He pointed to a mattress recycling startup that needed a baler. The firm couldn’t get a lender “to even talk to them” because they had no track record, said Taranovich. However, Vision Financial was able to provide financing “even quicker than expected” and the firm has grown “and is looking for other components to add.”

Despite purchasing options, owners in the waste and recycling sector are unlikely to lose their aversion to debt, a condition addressed by Roznovsky. “Inherently, no one really likes debt,” he remarked. “It’s easier to sleep at night without that cloud hanging over you.”

Ignoring the menu of financing options available in the U.S., however, may simply be bad business, he added. “We feel there is an art to maintaining a healthy debt level and maintaining cash reserves for opportunities and uncertainties that you may encounter.”

The author is a senior editor with the Recycling Today Media Group and can be contacted at btaylor@gie.net.

An industry reunion

It’s been more than a year since the COVID-19 pandemic forced industry conferences to go virtual, and WasteExpo—the largest solid waste, recycling and organics industry conference and trade show—will return to the Las Vegas Convention Center (LVCC) June 28-30 after being held virtually in 2020.

“For more than 50 years, WasteExpo has provided the industry with comradery, opportunity, technology and the most comprehensive education program, and this year will be no different, except for some added health and safety measures,” says Liz Bothwell, head of content and marketing for Waste360, the Connecticut-based organizer of the event. “The WasteExpo team is thrilled to bring this community back together live in Las Vegas in June.”

Returning Safely

To address potential COVID-19 concerns, Informa, WasteExpo’s parent company, says it has adopted what is known as the AllSecure Plan to ensure the highest level of safety, hygiene, cleanliness and operational effectiveness for all the event’s exhibitors, attendees and speakers, as well as press who are covering the convention. This plan is founded on 10 commitments in the areas of cleaning and hygiene, physical distancing and protection and detection.

According to WasteExpo organizers, the AllSecure standards were developed with The Global Association of the Exhibition Industry, the Association of Event Organizers, and the Society of Independent Show Organizers; event organizers Informa, Reed Exhibitions and Clarion; and a range of event venues and suppliers with input from health, government and local authorities.

“Our attendees, exhibitors and sponsors should feel confident that WasteExpo will be a safe environment,” Bothwell says.

In addition to the safety protocols in place, the LVCC has been awarded the Global Biorisk Advisory Council (GBAC) STAR facility accreditation by ISSA, the Worldwide Cleaning Industry Association. The GBAC program is considered the gold standard for safe facilities and was designed to control the risks associated with infectious agents, including COVID-19.

WasteExpo also will feature daily temperature screenings, face mask requirements, physical distancing, contactless registration, enhanced cleaning and more.

“We have an outstanding program planned, and we are thrilled to bring our community back together in person in Las Vegas this summer,” says Marc Acampora, Waste360 vice president. “Guided by ... AllSecure, WasteExpo aims to deliver the highest levels of hygiene and safety at the event.”

Event highlights

With more than 600 exhibitors and 14,500 anticipated attendees, according to Waste360, those participating in WasteExpo 2021 can expect a comprehensive education program, including trending and timely topics.

This year’s conference features multiple tracks for attendees to choose from, including Operations, Fleet and Safety; Recycling and Landfill; Business Insights and Policy; Technology and Innovation; and more.

With technology and innovation as the underlying themes of this year’s WasteExpo, Bothwell says attendees can expect a conference program that dives deep into recycling, landfill, fleet management, collection, organics, safety, food recovery and more.

The event’s Spotlight Sessions are scheduled to make a comeback, kicking off with a one-on-one “fireside chat” between Worthing Jackman, president and CEO of Waste Connections, Ontario, and Darrell Smith, president and CEO of the National Waste & Recycling Association (NWRA), Arlington, Virginia. The two will discuss leadership, business insights and industry issues.

Adam Minter also returns with a WasteExpo Spotlight Session that offers a deep dive into how the world of reuse is being transformed by one of the oldest retail models—the used car lot. During his presentation, “Broken Phones and Used Cars: The Future of Recycling and Reuse Becomes the Past,” Minter plans to lay out how some of the world’s biggest retailers are nudging consumers into rethinking waste and recycling and setting up new forms of competition for traditional recyclers.

Other sessions include “The Waste & Recycling Industry Employment Outlook” and “Opportunities & Challenges of Refuse Fleet Electrification—What We’ve Learned.”

Additional discussions that WasteExpo attendees can look forward to include Rising Leaders Talk Trash, where 2021 Waste360 40 Under 40 award winners and rising leaders share their perspectives on where the waste industry is headed, and the People’s Choice Session—Legislative Updates by Region, which covers “Move Over” laws, climate change, recycling, extended producer responsibility legislation, per- and polyfluoroalkyl substances, cannabis waste and more.

Industry insights

For more insights into the business of waste and recycling, WasteExpo has brought back its co-located conferences.

The Waste360/Stifel Investor Summit offers a full day of learning and analysis from investors and leaders from the top public and private companies.

Meanwhile, the half-day Business Leadership Forum, hosted by Comerica Bank, is designed for small and midsized environmental services companies looking for business and financial strategies beyond day-to-day operations.

For attendees looking to learn the latest techniques regarding food waste, the Food Recovery Forum features presentations from experts in the field. According to the event’s organizers, these industry leaders plan to share strategies to help attendees develop a more sustainable food system and explore how data can be used to drive food waste reduction efforts.

The newest addition to WasteExpo’s co-located conferences is Waste360 Sustainability Talks, which feature frank discussions on plastics, packaging, food waste and other environmental challenges.

WasteExpo is organized in partnership with the NWRA and Stu Buckner, president of Buckner Environmental Associates LLC of East Islip, New York.

“Technology and innovation will be front-and-center throughout the event, and hundreds of exhibitors will be ready to help attendees find the latest solutions,” Bothwell says.

Whether attendees are from the private sector; a small, medium or large public sector waste management company; organics management or food waste management company; or a manufacturer or supplier from the U.S. or abroad, Bothwell says this year’s WasteExpo will bring the entire industry together under one roof again.

She concludes, “There’s no other event that brings the waste, recycling and organics community together like WasteExpo, and this year will truly be a reunion.”