Security Shredding & Storage News Jan/Feb 2012

Volume 9, Issue 1

&

January / February 2012

Security Shredding Storage News

Serving the Security Shredding & Paper Recovery Markets Visit us online at www.securityshreddingnews.com

ATTENTION: READERS !

Are you looking for Products, Equipment or Services for your business? If so, please check out these leading companies advertised in this issue:

Collection & Storage Containers Bomac Carts – pg 9 Jake, Connor & Crew – pg 20

Lock & Locking Systems Lock America Intl. – pg 19

Merger & Acquisition Advisors Shotgun Capital Advisors – pg 17

Mobile Truck Shredders

RFID Technology

Alpine Shredders Ltd – pg 15 Shred-Tech Limited – pg 13 ShredFast – pg 10 ShredSupply – pg 11 Vecoplan LLC – pg 9

Paper Balers

Innovates the Records Management Industry

IPS Balers, Inc. – pg 19

BY JONATHAN POOLE

Moving Floor System Keith Manufacturing – pg 13

Replacement Parts Dun-Rite Tool – pg 12 Tryco – pg 13

Stationary Shredders & Grinders Allegheny Shredders – pg 7 Schutte-Buffalo Hammer Mill, LLC – pg 2 UNTHA America – pg 8 Waste Revolution – pg 19 WEIMA America – pg 12

R

ecords management professionals often struggle to efficiently and effectively handle high volumes of documents. Two of the top challenges from the industry are: • How can document and records database security be enhanced?

• What can be done to decrease the time and increase the accuracy of inventory audits?

Waste commodity purchasers

Commodity Resource & Environmental – pg 19 Dan-Mar Components – pg 6

PRSRT STD U.S. Postage

PAID

Mentor, OH Permit No. 2

In addition to the desire to handle documents more efficiently to reduce costs, regulatory requirements are a key driver for increased security, speed and accuracy. In the last ten years, legislation such as the SarbanesOxley Act, HIPPA and HITECH required U.S. financial and health care institutions to pay more attention to safeguarding crucial and confidential documents. The Personal Information Protection and Electronic Documents Act had a similar effect on Canadian businesses. Electronic information sharing technologies, such as the Internet, provoked more privacy and security laws at the local, global and organizational levels. This morphed the records department from simple storage and retrieval tasks to include governance, destruction, disposition management and content management.

T h e g row t h i n Ra d i o Fre q u e n c y Identification (RFID) technology provided the opportunity for document storage companies to solve the demands placed on businesses

to enhance the security of vital documents, files and media tapes. Despite predictions of a “paperless office,” businesses continue to produce crucial paper documents of all kinds. Further, the expectation of real-time information and results ushered in by the digital age are now expected of the physical records storage industry. Response times have to be shortened because industry demands it.

RFID offered a clear solution to that demand.

By cutting audit time to a mere fraction, RFID allows records managers the kind of laser-like accuracy and nearly immediate response times required.

Continued on page 3

Inside This Issue

4 Paper’s Next Small Thing

6 2012, A Good Year to Sell Your Business 13 E-Waste Environmental Crisis is Being Mitigated by Strong Growth in Electronics Recycling and Reuse 15 Texan IT Pro Offers Advice on Data Protection 18 American Sustainable Business Council Endorses Responsible Electronics Recycling Act to Limit Toxic E-Waste

unlike a shredder, the

E-CYCLER doesn’t just cut it...

it

E-nihiLatEs.

Schutte-Buffalo hammermill’s e-cycler is the alternative to a shredder. unlike the cutting action of a shredder, the e-cycler hammer mill pulverizes e-scrap, scouring confidential data and liberating recyclable components in one pass.

• ½ the cost of a shredder with lower maintenance costs and a higher production capacity • completely scours information to illegibility • renders electronic components unusable and unrecognizable • four-way reversible steel hammers crush and shatter the material • interchangeable screens guarantee a properly-sized end product • liberates components for easy separation and recycling • pulverizes hard drives, printed circuit boards, cDs & DVDs, cellular phones and more

1-800-447-4634

America’s fastest growing hammermill company

6 1 D e p o t S t r e e t, B u f f a l o , N Y 1 4 2 0 6 • 7 1 6 . 8 5 5 . 1 5 5 5 • f a x : 7 1 6 . 8 5 5 . 3 4 1 7 • e - m a i l : iinfo@hammermills.com N f o @ h a m m e r m i l l S . c o m • www.hammermills.com www.hammermillS.com

590-14_Security_Shrednews_mag_FT_M.indd 1

Info Request #132

2 Security Shredding & Storage News. January / February 2012

11/3/11 10:34 AM

Security Shredding & Storage News

RFID Technology Innovates the Records Management Industry Continued from page 1

PUBLICATION STAFF Publisher / Editor Rick Downing

Contributing Editors / Writers Ken McEntee Jim McGuire Jonathan Poole

Production / Layout Barb Fontanelle Christine Pavelka

Advertising Sales Rick Downing

Subscription / Circulation Donna Downing

Editorial, Circulation & Advertising Office 6075 Hopkins Road Mentor, OH 44060 Ph: 440-257-6453 Fax: 440-257-6459 Email: downassoc2@oh.rr.com www.sssnews.com For subscription information, please call 440-257-6453 Security Shredding & Storage News (ISSN #1549-8654) is published bimonthly by Downing & Associates.

Reproductions or transmission of Security Shredding & Storage News, in whole or in part, without written permission of the publisher is prohibited.

Annual subscription rate U.S. is $19.95.

Outside of the U.S. add $10.00 ($29.95).

Contact our main office, or mail-in the subscription form with payment. ©Copyright 2012 by Downing & Associates.

Printed on 10% Post-Consumer Recycled Paper

As security requirements increased, the need for a physical confirmation of the material did too. RFID helped to further address this new business requirement. Many companies, including Fortune 500 leaders, initially ignored the need for an inventory audit and relied on a simple inventory report due to the high costs and limited accuracy of manual audits. However, simple inventory reports could only provide a list of all assets managed.

An Inventory report did not provide validation of the material, exposing risk and liability. The introduction of RFID revolutionized the industry’s ability to meet this new business requirement by creating access to quick, complete and accurate inventory audits.

One significant financial institution requires a 100 percent inventory audit – every item, every year. With more than two million cartons to track, this is a daunting task to be sure. The environment where the audit takes place and the stacking of the cartons makes the task even more challenging.

The records management industry typically stores cardboard boxes, or cartons, on shelves three deep and three high. To inventory these cartons, inventory specialists must physically touch each one. Cartons in the first two rows must be removed to access the carton in the back row. This is a very labor intensive process, with significant risk to the safety of staff members and materials. Just how labor intensive is it? A typical information center (IC) will store approximately one million cartons, so let’s use that as a starting point. An IC worker starts auditing at one end of the building, and works their way to the other end. They begin by removing the front row, then the middle row and then the back row. Replace and scan the middle, then the front and move on to the next position. Think about all of the moving, turning and lifting. To complete the full scan will take a worker five years. Consider the cost to actually complete a full audit for the financial institution with two million cartons. The financial institution, and the records management industry, needed a faster, more accurate method to perform audits.

RFID tagging and inventorying for the records management industry was pioneered in 2003, and really stepped up in 2005 with the introduction of Gen 2-style tags. Until that time, the process of finding an appropriate tag and reader combination was difficult, and in what was essentially a very small emerging industry.

Now, RFID technology enables IC workers to read through physical materials, including several cartons, and there is no longer the need to remove any cartons from the shelf during audit process.

Since there is no longer the need to physically handle every carton, the time to audit is cut down from years to several weeks, and the safety and security of the process is drastically improved. This represented a significant moment in the industry, as it now became possible to perform 100 percent inventory audits annually and meet industry standards.

Records Managers and their internal customers are able to reduce business risks and better meet regulatory requirements.

Naturally, the next step was to look at developing additional ways that RFID could deliver benefits

across multiple types of records to records managers.

Today, industry leading records management facilities can track well beyond the carton level, inventorying individual files and data backup tapes with RFID. Just as the development of the carton RFID tag represented a significant amount of time and research, the file and tape level products also took time to develop, and faced their own technology challenges.

A significant obstacle for file-level tagging was tag collision, where RFID tags placed closely together become “invisible” to the scanner. For cartons where there are up to 150 files tightly packed together, this was a significant point to overcome.

Using a combination of new tags and new readers, 100 percent readability has been accomplished, even in this dense environment. The key in this case was not just the density of the surrounding material, as in the carton tag case, but the orientation of the tag within the carton.

RFID-enabled file-level tracking delivers two key benefits for auditing. First, RFID can be used to confirm the contents of cartons as they arrive at an IC, thus ensuring the material is accurately tracked.

Second, in the same fashion as the carton audit, “active file” audits can be performed, providing a 100 percent inventory audit. Active file is becoming popular, providing the dual benefit of increased footprint at the client’s offices and the increased security provided by a secure facility. The RFID inventory audit of these active files is a key enabler for this type of service to take place.

RFID is now used to track data tapes. Despite the increase in the use of the cloud to store data, most companies still have some type of magnetic tape based back-up system to ensure business continuity in the event of a disaster. For many years, successful disaster recovery (DR) programs have included performing tests and periodic tape audits. The use of RFID in performing these audits drastically reduces the time spent performing them, and ensures that DR policies and security programs remain up-to-date. The most advanced facilities have the ability to audit tapes inside sealed containers. Consider the amount of data that can be stored on a single backup tape, which is up to 3 terra bytes of information. The number of potential records is staggering, and the result is that companies are starting to conduct sealed case transactions.

The speed and security of RFID has now made the technology instrumental in rapidly and accurately inventorying critical records and data. Drastically cutting retrieval times and costs, RFID technology is a “must have” for any records management strategy.

Jonathan Poole is accountable for RFID and IT innovation in the Global IT department of Recall Corporation, www.recall.com. Jon joined the RFID team in 2005, and has been leading the initiative since 2009, working on all aspects of RFID from research through deployment, helping to manage Recall’s over 20 million tagged assets. Jon holds a BA from McMaster University (Hamilton, ON, Canada) and is Lean-Sigma Black Belt certified.

Security Shredding & Storage News. January / February 2012

3

Security Shredding & Storage News

Paper’s Next Small Thing

BY KEN McENTEE

Despite growing economies and greater demand for scrap paper, Central and South America are likely to remain only a niche market for U.S. recovered paper, traders say.

O

n the surface, Central and South America might appear attractive markets to exporters of U.S. scrap paper. The Latin American economy (including Mexico) is expected to grow 3.6 percent in 2012, according to an August report from Morgan Stanley (New York). In contrast with stagnating economies in North America and Europe, countries “are still growing down here,” says Kevin Baker, the Peru-based Latin American agent for CellMark Recycling (Corte Madera, Calif.). “Peru has [had] huge growth, at a 7 to 8 percent average over the past 10 years. Chile’s economy has grown 2 to 3 percent a year, which is still better than the U.S.” Brokers expect the strong economic growth in the region to continue, which could boost its demand for recovered paper, and the United States has a geographic advantage over some other, more distant sources of imported paper stock.

U.S. recovered paper exports to Central and South American countries have increased over the past decade, but the region still takes in only about 3 percent of the total, according to U.S. government data. Significant further growth is unlikely for two reasons, say traders with knowledge of these markets. First, the conditions under which the mills want to buy are a challenge for U.S. exporters.

Orders are inconsistent, and payments are generally slow. “You have to be patient to do business down here,” says David Jordan, the Santiago, Chile-based Latin American agent for Jordan Trading (Kingston, N.Y). Second, the region’s mills expect to meet much of their future need with domestic supply. With a significant price difference between the two—“imported tonnage is generally $50 to $100 a ton higher than locally collected tonnage due to the added costs of overseas shipment, customs, and banking charges,” notes Jason Lavelle, export director for American Fiber Services (Atlanta)—and the predominantly hand-sorted domestic supply providing higher quality than imported material, the region’s mills have a big incentive to invest in expanding domestic collection as much as possible.

Despite these barriers to Central and South America becoming a major market for U.S. recovered paper, traders have established successful ongoing relationships in the region. Here’s a look at these niche markets and their prospects going forward.

Trading by the Numbers

C

entral and South American countries were the destinations for just 637,000 short tons—or about 3 percent—of the 20.7 million tons of U.S. recovered fiber exports in 2010, according to data from the U.S. Department of Commerce, Bureau of the Census (Washington, D.C.). And that’s after strong growth in demand there for U.S. recovered fiber in recent years. In 2010, exports were up more than 16 percent from 2009; U.S. scrap paper exports to Asia, in comparison, fell 6.4 percent in that period. Through April 2011, however, U.S. exports to Central and South America were down 19 percent compared with the same period in 2010.

The bulk of U.S. scrap paper shipments to Central and South America are OCC and mixed paper, according to Commerce Department data. In 2010, OCC was about 44 percent of the total (283,000 tons), while mixed paper was 25 percent (157,000 tons). Pulp substitutes, the third-largest segment, were 13 percent of total U.S. exports (85,000 tons), followed closely by chemical deinking grades, at 12 percent (78,000 tons). Exports of groundwood grades, including ONP, in 2010 reached 34,000 tons, or 5 percent of the total. Notably, those percentages varied little from 2000 to 2010. During that 11-year period, OCC was 45 percent of all U.S. exports to South and Central America; mixed paper, 23 percent; and chemical deinking grades, 8 percent.

By country, Ecuador was the largest buyer of U.S. scrap paper in the region in 2010, importing more than 120,000 tons. The other top five buyers were Chile, which purchased 92,000 tons; El Salva-dor, 89,000 tons; Venezuela, 77,000 tons; and Colombia, 73,000 tons.

By grade, Ecuador was the top consumer of U.S. OCC, taking in 103,000 tons, followed by Venezuela, 54,000 tons, and Chile, 48,000 tons. In the deinking market, El Salvador was the top buyer, purchasing 16,500 tons, with Chile a close second at 16,100 tons. El Salvador also was the leading importer of U.S. pulp substitutes, at 34,100 tons, with Colombia a distant second at 13,200 tons.

Colombia, however, was the largest market for mixed paper, at 31,000 tons, followed by Chile, 24,000 tons, and Peru, 22,000 tons.

U.S. scrap paper exporters ship the majority of their tonnage to Central and South America from the East Coast. Between 2000 and 2010, more than 26 percent of those shipments moved from New York, with Miami and Puerto Rico accounting for 15 percent and 11 percent, respectively. Another 11 percent came from Los Angeles, the only significant West Coast port, with most of the balance moving through the ports of Baltimore; Tampa, Fla.; Philadelphia; Mobile, Ala.; Norfolk, Va.; and Charleston, S.C.

An Up-and-Down Market

W

hen U.S. scrap paper traders list the challenges of the Central and South American markets, inconsistent buying is at the top. Month-to-month U.S. scrap paper shipments to markets such as El Salvador, Ecuador, and Chile show a dramatic pattern of peaks and valleys. For example, Ecuador’s demand for U.S. OCC ranged from 10,587 tons in October 2010 to 601 tons in March 2011, then demand went back up to 7,552 tons in April 2011. Similarly, U.S. OCC exports to Chile jumped from 4,816 tons in October 2010 to 7,830 tons in December 2010, then they plummeted to 975 tons in April 2011. “Nothing is steady,” Jordan says. “That’s a big challenge down here. All of the mills tend to be in and out of the market all the time.” Valerie Roquefort, Latin American agent for Ekman Trading (Lyndhurst, N.J.), says most of her company’s customers in Central and South America buy eight months out of 12. “Some other mills

4 Security Shredding & Storage News. January / February 2012

Continued on next page

Security Shredding & Storage News Continued from previous page may buy three or four months, then you don’t see them for another year,” she says. “I can’t think of a customer who buys every month.”

One explanation for these dramatic buying swings is that Central and South American mills tend to buy first from local sources that deliver less expensive and cleaner fiber. “The wastepaper collected locally is all hand-sorted, so it’s much cleaner than the wastepaper that comes from the United States,” Jordan says. In Chile, for example, there’s no government-supported residential recycling program, but informal-sector workers have long collected and sold scrap paper. “We put our trash on the streets, and the cartoneros come with push carts and pull the cardboard, newspaper, and other recyclables out of the trash,” Jordan says.

“What they take to the mills is pure OCC. It’s very clean, double-sort quality.” Roquefort concurs. “The local supply is beautiful. It’s much cleaner than U.S. paper, so the U.S. is the last resort for these mills.

They import only what they have to, when they have a lack of local supply.” In fact, she says, the quality of U.S. exported fiber has declined progressively over the past 10 years. “Our customers can see the difference. They expect the paper they import to meet the same quality as what they get from the local furnish, and I don’t think that’s possible.”

The demand for high-quality paper is not just a preference, Lavelle says. Latin American mills are designed to consume extremely clean recovered paper. Though the large mill groups have invested in the latest technology, which allows them to use paper with higher contaminant levels, smaller mills in the region might not have that option. That’s one reason why brokers expect Central and South American mills to focus heavily on increasing local collection systems in the coming years.

When local sources cannot meet the mills’ supply needs, they turn first to neighboring countries, largely because “they can get it cheaper from other countries in the region than they can from the United States,” Jordan says. That usually puts U.S. suppliers in the position of filling in the gaps. As a result, U.S. brokers often find themselves waiting to hear whether they will get an order for the month.

In addition to facing inconsistent markets, brokers who sell to Central and South America say they face long payment terms at virtually all mills—and many mills are high credit risks as well.

“Mills down here want a minimum of 60 days; most want 90 days, and it is rare to receive timely payments,” Jordan says.

In fairness, traders attribute some of the payment issues to the individual Central and South American governments rather than the buyers.

“Venezuela, for example, is horrible to deal with because the government controls every aspect of foreign exchange,” Baker says. “The terms might be 90 days, but by the time the government releases the funds, you don’t get paid before 180 [days].

The customers are willing and wanting to pay,

but it’s out of their control.” Venezuela also poses other challenges, such as strict import regulations, Roquefort says. “Every single import has to be preapproved,” she notes. “Venezuela and Argentina come to mind as [countries that are] very difficult to do business in. It isn’t a reflection of the customers.

It’s just a very difficult political situation.”

In light of such financial and trade risks, it’s important to know your customer, Baker says.

“You have to know whom you’re dealing with. Like everything else, it’s all relationship-based.” Living in the region is an advantage, he says—he moved to Peru in November 2010. “Most of the traders are U.S.-based and focus mainly on the supply side of the market,” he explains. “Being here gives me a chance to focus on the customer side. If I want to go down to Chile to see a customer, I can easily fly down for a day and come back. From the U.S., it would take 12 hours to fly down.”

The Players and the Process

A

few large, multinational mill groups dominate the paper and paperboard industry in South and Central America, including

➥ E m p r e s a s C M P C, a S a n t i a g o - b a s e d company with a variety of subsidiaries i n f o r e s t r y, p u l p , t i s s u e , p a p e r, and paperboard. The company and its subsidiaries operate mills in Chile, Argentina, Peru, Uruguay, Colombia, Ecuador, Brazil, and Mexico. CMPC also operates Sorepa (Santiago), a paper recycling business. ➥ Kimberly-Clark (Dallas), which has tissue mills in eight countries in Central and South America. ➥ Svenska Cellulosa Aktiebolaget (Stockholm), which has joint-venture tissue manufacturing operations in Argentina, Bolivia, Chile, Colombia, the Dominican Republic, Ecuador, Peru, and Venezuela. The joint ventures operate under the names Familia Group (Medellin, Colombia) and Pisa Group (Santiago). ➥ The Smurfit Kappa Group (Dublin), the largest corrugated producer in Latin America and the only pan-regional producer of corrugated and containerboard in the region, with operations in nine countries. ➥ Kruger, based in Montréal, which operates two tissue manufacturing operations—Papeles Nacionales (Bogotá, Colombia) and Papeles Venezolanos (Paveca, Venezuela).

“There also are some smaller mills that have their own niches,” Baker adds.

To illustrate how the Central and South American market works, brokers describe the fiber procurement process at two of the largest mill groups in the region. At CMPC, for instance, individual mill buyers purchased fiber until about a year ago; today the company has a central purchasing department

in Santiago. As Jordan explains, the company sends an e-mail to suppliers each month that breaks down the projected fiber needs for its operations in various countries, and it sets a deadline for suppliers to submit offers. CMPC reserves the right to take up to five business days after the deadline to inform suppliers if it plans to buy any fiber from them. The problem, Jordan says, is that the company doesn’t send any kind of communication if it doesn’t plan to buy from a specific supplier, “so you’re waiting, not knowing whether you’re going to hear from them or not.” The issue, traders explain, is that CMPC’s purchasing agents are in the central office, and they don’t work directly with scrap paper. They’re looking for the best prices, and there’s no negotiation.

Another broker agrees that mills’ lack of communication makes it difficult for their suppliers to plan. “You quote something, and a week later you can still be waiting for an answer. We hold a certain amount of the grades the mills buy in reserve for them. At some point, we just can’t hold on anymore because the market is moving, and we have to move those tons.”

The buying process for Kimberly-Clark, though similar, is typically faster, exporters say. The company has a central purchasing officer in Costa Rica who buys for South and Central America.

As with CMPC, he sends a list of the company’s projected fiber needs to its suppliers, but “he tries to confirm his orders a few days after the deadline,” Jordan says.

Mills’ environmental considerations are another factor that can affect their purchasing decisions, Jordan notes. “Mills need to utilize an amount of recycled fiber, particularly postconsumer fiber, to obtain or maintain recognition for sound environmental practices, such as FSC [Forest Stewardship Council] certification,” he says.

Even if the mills end up buying more recovered paper, none of these market participants expects U.S. recovered paper exports to Central and South America to increase substantially. “I see South America growing but not becoming a major factor in the near future,” Lavelle says. Citing the above mentioned price and quality issues, Jordan expects the region’s producers to remain focused on developing their local supplies of recovered paper.

“I think there’s going to be less and less demand for imported fiber from the United States as Central and South American mills cultivate domestic collection,” he says.

Still, a small market is enough to keep these brokers in business. “I’ve been doing this for 15 years,” Baker says. “It’s a nice little niche market to have.”

Ken McEntee is editor and publisher of The Paper Stock Report and Paper Recycling Online (www. recycle.cc). This article originally appeared in the Sept/Oct 2011 issue of Scrap magazine (www.scrap. org), the bimonthly magazine of the Institute of Scrap Recycling Industries (ISRI, www.isri.org). Reprinted with permission.

attention: readers!

Would you like more information about products and equipment advertised in this issue? If so, please complete the Equipment Locator Service form located between pages 10 & 11 and fax to 440-257-6459.

Security Shredding & Storage News. January / February 2012

5

Security Shredding & Storage News

2012

A Good Year to Sell Your Business

B

BY JIM McGUIRE

usiness owners contemplating the sale of their shredding company in the next three years may want to strongly consider accelerating their exit plans into 2012. In doing so, they may actually walk away from the deal table this year with more money in their pockets than they would by waiting until 2013, or beyond.

Here are five reasons why selling in 2012 may be to your advantage:

1. Overall, 2011 was a good growth year for the shredding industry. Many industry players experienced increased container placements in recurring accounts over previous years. Purge service demand also increased in both number and size, as easing economic conditions finally opened up budgets for cleaning out file rooms bursting at the seams.

Magnifying these increases in service revenues was the steady rise of recycled paper prices through the fourth quarter of 2011. Many report that 2011 was their best year in a long time. If your shredding business experienced solid financial performance in 2011, you should strongly consider leveraging that performance with an early 2012 transaction.

2. Buyer interest has increased notably since the world (and the shredding industry) changed in 2008. Economic uncertainty combined with the October 2008 collapse of the recycled paper markets created a challenging environment in which to get deals done. Corporate buyers have since returned from the sidelines, and a number of established independent shredding companies have developed the financial horsepower to expand their shredding businesses by acquiring smaller competitors. We expect 2012 will be a very active year for transactions in the shredding industry, with several buyers competing to get deals done.

3. Significant tax changes are expected in 2013. The historically low (and highly favorable) capital gains tax rate of 15 percent is scheduled to expire at the end of 2012. If Congress does nothing the capital gains tax rate will automatically return to 20 percent in 2013, a 33 percent increase in the tax burden on many business sales. There is a real risk that Congress may raise

the capital gains tax rate even higher.

On top of the ominous capital gains tax increases, 2013 will introduce a 3.8% Medicare tax for high-income taxpayers. Selling your business in 2013 would likely subject you to this additional tax burden, whereas accelerating your sale into 2012 would avoid this increased tax consequence.

Net effect? Delaying a sale into 2013 will increase the tax burden on a business owner by nearly $90,000 for every $1 million in gain. To put this into perspective, your business would need to grow by 12% in 2013 in order for you to realize the same after-tax proceeds that you would have gained from a transaction completed in 2012 under the more favorable tax laws.

We recommend you speak with your tax advisor on the pending tax changes and adjust your exit plan if necessary.

4. The exit may quickly become crowded. Owners of shredding businesses who missed out on the acquisition frenzy from 2000 through 2007, weathered the storm in 2008, and grew through 2011 may all be heading for the exit at the same time. In addition, we expect the looming tax increases will motivate other industry players to accelerate their exit plans into 2012. Positioning your business sale early in 2012 could give you an edge in what may become a crowded and competitive marketplace.

5. What if this is as good as it gets? It is important to recognize when your business has peaked in value. Get advice from industry advisors that can assist you with determining if continued long term investment in your business will yield an increase in value over time.

The sale of your shredding business may very well be the largest financial transaction of your life. What counts is what you put in your pocket, after taxes. By preparing early, you will increase your chances of success when the right opportunity comes your way.

Jim McGuire is president of Shotgun Capital Advisors, LLC, a merger and acquisition advisory firm that represents sellers of document destruction service businesses. He can be reached at jim.mcguire@shotguncapital.com.

Attention: Document Destruction Contractors!

Help Your Customers Find a Home for Their Outdated Electronics Do what many ‘leading recyclers’ have done ...

Partner with Dan-Mar and turn your scrap into cash!

Precious metal value is going up and so is the demand for electronic scrap.

As a global leader in asset recovery, Dan-Mar is ready to present you with fresh thinking on how you can maximize your profits. Call Dan-Mar today! ph: 631-242-8877 • fax: 631-242-8995 150 West Industry Court, Deer Park, NY 11729 e-mail: smartini@dan-mar.com • www.dan-mar.com

The Name to Trust in Surplus™

Info Request #114

6 Security Shredding & Storage News. January / February 2012

Dan-Mar Buys: • • • • • • • • •

Precious Metal Military Electronics Semiconductors Components Scrap PC Boards Telecommunications Integrated Circuits Networking & Test Equipment E-Scrap

In the News More Secure Destruction Professionals Join CSDS Ranks

W

ith the results of the most recent examinations, more than 100 individuals have now earned the Certified Secure Destruction Specialist (CSDS) designation. The National Association for Information Destruction (NAID) developed the CSDS program for secure destruction professionals to demonstrate their competencies in data protection legislation, secure destruction operations, physical security, records management, risk management, ethics and NAID certification.

“These industry professionals should be very proud of themselves. No one passes this test without a lot of hard work and dedication,” said NAID CEO Bob Johnson. “Best of all, they’ve set themselves up for success; not simply by having the CSDS credential, but by developing a comprehensive understanding of our dynamic industry.”

NAID created the CSDS accreditation to promote and acknowledge a range of disciplines in the secure destruction industry. The CSDS accreditation exam was establishes an individual’s competency in those disciplines. The examination has 300 questions from seven subject areas. To prepare for the exam, NAID provides a CSDS handbook and sample exam on the NAID website as well as a 10-session CSDS training webinar series.

“Overall we’ve had an 85% passing rate, which is phenomenal considering how difficult this exam is,” said Jamie Steimer, NAID Director of Events and Programs. “Those who participated in the webinar series were among the individuals who saw the best results.”

Most recently, the following individuals passed the exam and can now display their new CSDS credentials: • Randy Brusso, CSDS Mohave Shred • Scott Dennis, CSDS Rapid Shred • James W. Dowse, CSDS Shred Services, Inc. • Larry Hess, CSDS Harris Micrographics • Clint Phillips, CSDS DataGuard, Inc. • Adam Reitman, CSDS Intek Leasing • Greg Reuter, CSDS Green Delete, Inc. • Melissa Rinehimer, CSDS GigaBiter, Inc. • Renee Schafer, CSDS Data Security, Inc. • Avery Sullivan, CSDS Green Delete, Inc. The next CSDS examination will be March 30, in conjunction with the NAID 2012 Annual Conference and Expo in Anaheim, Calif.

For more information about upcoming training, exams and registration, contact accreditation@naidonline.org or visit www.naidonline.org.

North State Communications Buys DataChambers

H

igh Point, NC–North State Communications of High Point is buying DataChambers, an information-technology and data-storage company with has two data centers in Winston-Salem, but the terms of the deal have not been disclosed. DataChambers provides information technology services, including electronic data storage, managed information technology solutions and secure co-location services for mission-critical infrastructure. North State was eager to acquire DataChambers’ 120,000 square foot data center and disaster recovery space. North State offers Internet, voice, wireless, data and advanced television services to businesses.

The deal does not include DataChambers Records Management, which is being kept by the current owners, who provide secure information services, including document imaging, shredding, file management and record storage, to over 1,000 clients in the region around Charlotte, Greensboro, High Point and Winston-Salem.

The purchase will enable North State to speed up its plant to diversify its business and revenue mix. Says Hayden McKenzie, chairman and chief executive of North State, the deal “will strengthen North State’s efforts in becoming the preferred provider of business communications and data solutions across the Triad and beyond.”

“We believe this combination will offer our customers the opportunity to grow with us, while providing additional value to North State’s customers and shareholders,” added Nicholas Kottyan, chief executive of DataChambers.

INDESTRUCTIBLE Shredding Power “ Allegheny’s precision-built equipment is made to last forever, is extremely reliable, and performs way beyond its expected capacity!”

— RENEE KEENER American Document Securities

Because knowledge is power, and we’ve got plenty of both!

www.alleghenyshredders.com

Allegheny’s equipment is as rock-solid as our reputation – built on 45 years of industry innovation and expertise.

We offer high performance shredding systems with capacities exceeding any in the industry. And all the knowledge you’ll need to collect, process, and recycle for profit!

800-245-2497

FREE Buyer’s Guide to help you save thousands of dollars!

Info 9:53 Request #1171 sss ad Dec 2011_PRISM AD 2/3/12 AM Page

UPCOMING CONFERENCES AND WORKSHOPS

ASIA PACIFIC REGION CONFERENCE FEBRUARY 27-29, 2012 MANILA, PHILIPPINES FUNDAMENTALS OF IMAGING PACIFIC REGION March 1, 2012 MANILA, PHILIPPINES PRISM INTERNATIONAL PRIVACY+ CERTIFICATION WORKSHOP MAY 14-15, 2012 LAS VEGAS, NEVADA, USA ANNUAL CONFERENCE 2012 MAY 15-17, 2012 LAS VEGAS, NEVADA, USA As a global organization, PRISM International meetings visit three continents each year.

For more information or to register for these upcoming conferences or workshops.

Please go to our website at www.prismintl.org

Security Shredding & Storage News. January / February 2012

7

In the News New York State E-Recycler Hits 1 Million Pound Mark

B

rockport, NY–As part of its “E-Scrap Drop Off ” program, Sunnking Electronics Recycling just recently hit the 1 million pound mark for electronics — televisions, computers, keyboards and other equipment — recycled throughout the state program. The New York State Electronics Recycling and Reuse Act puts the burden of recycling on manufacturers like Sony or Dell to recycle a certain amount of e‑material yearly or to buy purchase credits from a processor like Sunnking. Sunnking’s director of marketing, Zachary Hussion, says the program started in April to acknowledge a new state law on electronics recycling.

Since then, more than 1 million pounds were collected in one-day recycling events held at 42 business, government and non-profit locations throughout the state, with no charges for drop-offs.

The firm also has permanent recycle sites throughout the state at highway garages or public works departments and handles business-to-business recycling efforts for large companies. Sunnking dismantles the electronics and sorts them for proper disposal.

The one-day events are planned to continue, with the company offering a goal of recycling 1.5 to 2 million pounds in 2012.

The reliable brand!

The reliable brand!

• High Capacity • Tough & Economical • Continuous Feeding • High Capacity • Low Noise and Dust • Tough & Economical • Simple to Operate • Continuous Feeding • Low Maintenance • Low Noise and Dust

Using HIPAA Regs to Assure Whole Enterprise Security

S

pecial report–A new report from Dark Reading’s Compliance Tech Center by Diana Kelley and Ed Moyle advises business to use HIPAA directives as a jumping off point for improving all security issues. As excerpted from “Security Via HIPAA Compliance, the authors advise security organizations in the healthcare arena to focus on Healthcare Information Portability and Accountability Act compliance as a way to achieve better security across the board.

HIPAA standards are designed to benefit sites of all sizes, they say, so they are lacking in technical specificity. A place to start is with risk management, as the HIPAA Security Rule “is tied tightly to risk management activities, a coupling security organizations can leverage to make progress they probably couldn’t make otherwise.” Kelley and Moyle say that “the standards and implementation specifications outlined in the HIPAA Security Rule have a technical impact, but are usually tracked and managed by nontechnical compliance teams,” and thus the compliance team’s interpretation of implementation specifications “must be in sync with the technical security team’s.” They suggest reaching out to the compliance organization and walking through its existing compliance strategy with its people and weighing the varying interpretations.

Vecoplan Appoints New Service Director and Sales & Project Management Engineer

• Simple to Operate • Low Maintenance

W The RS SeRieS: ReVOLUTiONARY ShReDDiNG TeChNOLOGY –

The RS SeRieS: UNCOMPROMiSeD UNThA ReLiABiLiTY

ReVOLUTiONARY ShReDDiNG TeChNOLOGY – UNCOMPROMiSeD UNThA ReLiABiLiTY UNTHA shredding technology America Inc. 5 Merrill Industrial Drive, Hampton, NH 03842 Phone 603 601 2304, Fax 603 601 2423 info@untha-america.com, www.untha-america.com

Info Request #130 UNTHA shredding technology America Inc. 5 Merrill Industrial Drive, Hampton, NH 03842 Phone 603 601 2304, Fax 603 601 2423 info@untha-america.com, www.untha-america.com

8 Security Shredding & Storage News. January / February 2012

illiam (Bill) Davison has been named as the new Service Director of Vecoplan LLC. Responsibilities of his new position include the planning, allocation of resources, scheduling, and management of maintenance and service on existing machines, systems and control panels in the field.

Formerly General Manager at Sieger Mechanical Maintenance LTD, Davison brings over 22 years of mechanical and electrical maintenance experience in the industrial sector, to his new position as Service Director at Vecoplan.

Vecoplan also appointed Lars Koller as a Sales and Project Management Engineer. Koller earned a 5 year advanced Mechanical Engineering degree from Fachhochschule Hannover, Germany in 2001. He brings 10 years of engineering experience from Focke & Co., working first in Research & Development at Focke’s Verden, Germany headquarters and then as Manager of the Design Department at Focke’s Whitsett, NC facility.

Koller’s responsibilities will include coordinating the design and development of turnkey shredding systems for the recycling sector. He will also oversee the manufacture and implementation of his projects once the engineering phase has been completed, ensuring continuous quality control throughout the process.

In the News TITAN Mobile Shredding Honored as One of Philadelphia’s Top 100 for 2011

T

ITAN Mobile Shredding, LLC recently announced that they have been selected as a 2011 Philadelphia 100 Business - a ranking of the 100 fastest growing privately-held companies in the Greater Philadelphia area! Titan was ranked 87th out of the top 100 for 2011.

The Philadelphia 100 evaluation process is conducted by the Wharton Small Business Development Center, the Entrepreneurs’ Forum of Greater Philadelphia and the Philadelphia Business Journal. The ranking is highly competitive and highly prized. The 100 rankings are based on verified revenue growth.

California AG Requires Breaches to be Reported Online

S

acramento–The California attorney general has recently initiated an online form on the state government’s website through which businesses can report breaches of data security, says Hogan Lovell’s Chronicle of Data Protection. “Effective January 1 of this year, any person or business who issues a breach notification to more than 500 California residents as a result of a single breach is required under the California breach law to submit a notice of the breach to the California Attorney General,” says the rule.

The form requires businesses to upload a copy of a sample breach notification form and to submit additional information related to the breach on a two-page form, including the date of the breach, the date notice was provided to those individuals who were affected by the breach, the type of personal information involved, and finally, the type of breach. Information for law enforcement SSSNpurposes - Mobileis also required to be included on the site. In addition to the on-line reporting form, the attorney general’s new site also includes a section - “Sometimes Is Just...Weird!” whereMessage residents can view a listing ofBig all breaches that have been submitted to the Attorney General’s office. It also includes an online complaint form for citizens.

Sometimes big is just....weird!

www.bomaccarts.com

Info Request #133

The “Mighty-Mite”

Introducing the “Smaller” Vecoplan VST-32 Shorty Non-CDL Mobile Shredder • 26,000 GVW, Non-CDL Mobile Shredding System • Curb-Side Toter Lift • “SureTrac”™ Gliding Floor Discharge System

Featuring the NEW VNZ-80 Shredder • Variable and Controllable, Screened Particle Size • Electric Drive • Large Infeed Hopper • Jam-Proof Design

Phone: (336) 861-6070

vecoplanllc.com www.vecoplanllc.com

Contact Vecoplan Today For More Information Info Request #116

Security Shredding & Storage News. January / February 2012

9

www.shredfast.com

Info Request #158

10 Security Shredding & Storage News. January / February 2012

www.shredsupply.com

info@shredsupply.com

Info Request #158

Security Shredding & Storage News. January / February 2012 11

In the News Iron Mountain Survey: Law Firms Closing the Gap Between Paper and Electronic Records

L

ike other organizations seeking speed and savings, law firms are making the transition from paper to electronic files. This comes according to a new survey by information management company Iron Mountain Incorporated that also found nearly one third haven’t yet set policies for handling digital files. This survey of more than 200 law firm professionals regarding their firm’s information management practices reveals an industry with established policies for storing, accessing and disposing of hardcopy documents – and one still working to adopt the same level of governance for electronic files.

Chief among the findings, 28 percent of law firms say they have “gone paperless” (primarily use and maintain electronic files), or will in the next five years. An additional 29 percent are considering a plan to go this route as well. And while 79 percent of law firms have a records policy, 31 percent of those firms report that their policy only covers paper, not electronic records. The two findings suggest firms will have to broaden existing records management policies to include electronic files to accomplish their paperless objectives.

As part of their mission to manage their

HOW DO

YOU DESTROY?

information, respondents indicated that: The future is now – 10 percent of law firms surveyed have already made the transition from paper to primarily using electronic files; • They don’t have to go at it alone – When it comes to destroying client records, a key step in the paper-to-electronic transition, 45 percent of law firms have access to and are aware of the guidelines set forth by their local or state bar association; • And they are destroying their paper the right way – Most are using destruction methods for their paper information that are secure, with 42 percent of law firms relying on a vendor to destroy paper documents, and 27 percent using office shredders.

“For law firms, the benefits of using and managing electronic files are well understood – more efficient information workflows and easier access to information, which leads to faster legal analysis, improved collaboration, better client service and shorter time to revenue,” said Mike Holland, senior vice president and general manager, records management, Iron Mountain. “But many firms still need to unify paper and electronic records policies, a key step in their transition towards a less paperintensive environment. The consistent application of policy across both paper and electronic information is the cornerstone of complying with attorney ethical responsibilities, data privacy regulations and cost-effective information management.”

•

REPLACEMENT TOOLING – Low-RPM, Single-Shaft Shredders Allegheny Cresswood Granutech Shred-Tech SSI Untha Vecoplan Weima

The challenges you face in your production environment are unique, which is why you shouldn’t have to settle for an off the rack solution. At WEIMA, our experienced staff carefully analyze your individual needs to provide a custom, reliable and efficient shredding, grinding or briquetting Scan this code to learn how you can Destroy Responsibly.

solution guaranteed to perform in even the most challenging environments. Contact WEIMA today to learn more.

www.weimaamerica.com

info@weimaamerica.com

Info Request #131

12 Security Shredding & Storage News. January / February 2012

Manufactured in the Midwest

800 209 3145 www.dun-rite.com Info Request #143

In the News E-Waste Environmental Crisis is Being Mitigated by Strong Growth in Electronics Recycling and Reuse

A

s the adoption of consumer electronics, mobile phones, and computer equipment continues to increase around the world, the business and environmental challenges associated with electronic device disposition at end-of-life (EOL) grow greater and greater. According to a new report from Pike Research, as devices become obsolete and are replaced, the total volume and weight of EOL electronics, which is known as e-scrap, will more than double in the next 15 years, rising from 676 million cubic feet (and 6.0 million tons) in 2010 to 1,465 million cubic feet (and 14.9 million tons) by 2025. This trend will place increasing pressure on industry players, governments, and advocacy groups to find new ways to expand electronics recycling and reuse. E-scrap that is not recycled, reused, or stored becomes e-waste and is buried, incinerated, or dumped, representing a significant environmental hazard.

During the same forecast period, Pike Research anticipates that the electronics recycling movement will make strong progress, and the cleantech market intelligence firm forecasts that electronics recycling and reuse will rise from 122 million cubic feet (and 1.1 million tons) per year in 2010 to 789 million cubic feet (and 7.9 million tons) annually by 2025. By the early 2020s, the firm expects that recycling and reuse activity will surpass the annual volume and weight of electronic devices that become e-waste, and thus will play a large part in mitigating the e-waste crisis. However, these promising trends will still not be enough to solve the entire problem, as Pike Research anticipates that the total volume of e-waste in landfills will continue increasing throughout the period. “Electronics recycling and reuse is expanding at a significant rate,� says industry analyst Bob Boggio. “The growth in responsible disposition of obsolete electronics is being driven both by environmental legislation around the world as well as the sustainability and corporate social responsibility (CSR) programs of leading electronics manufacturers and service providers.�

However, Boggio adds that unwanted electronic equipment is still easily and inexpensively sent to landfill burial rather than being directed toward reuse or recycling. Trans-boundary shipments of e-waste from developed countries to developing countries continue, and the informal recovery of components and materials in developing countries remain a concern for human health and the environment. Boggio states that the gap may be narrowed in the coming years if national and regional governments modify their legislative mandates to close perceived loopholes and increase e-scrap diversion rates.

Pike Research’s report, “Electronics Recycling and E-Waste Issues�, provides a detailed analysis of e-scrap issues facing the electronics industry over the coming years, including an assessment of market and economic factors, legislative issues, environmental concerns, and the strategies of key industry players. The study includes market forecasts through 2025 for unit sales of electronics by category, along with volume and weight of total e-scrap generated as well as the ultimate disposition through recycling, reuse, storage, and e-waste. Also included are detailed interview responses from state environmental management agencies, OEMs and service providers, and e-waste processing companies. An Executive Summary of the report is available for free download on the firm’s website.

www.shred-tech.com/document-destruction/videos

www.shred-tech.com

Info Request #157

6LQFH

6HOOLQJ 6KUHGGHUV *ULQGHUV 3DUWV WU\FR FRP

www.tryco.com

7HO tryco@midwest.net WU\FR#PLGZHVW QHW

www.keithwalkingfloor.com

Info Request #106

Security Shredding & Storage News. January / February 2012 13

Product/Equipment Profiles Cresswood Launches “Destroyer-Max” Drive System

New EcoPAC Baler Automatically Densifies Waste Into Bagged Bales

C

T

resswood Shredding Machinery, Cortland, Illinois, has introduced the new DestroyerMax Drive System for its Destroyer line of single-shaft, low-RPM shredders.

The new drive is designed to offer secure destruction and storage companies increased throughput and uniform output results when processing bulk paper, and product destruction materials such as plastic packaging rejects, poker chips, uniforms & fabric, books, catalogs, and manuals.

Jack Cress, CEO, Cresswood, says “we’re finding that secure destruction companies are challenged by customers to take on specialty shredding jobs while needing to hit volume goals and reduce operating costs in order to be profitable. So, we’re excited that coupled with our new Max-Rotor design, the Destroyer-Max Drive produces an impressive increase in throughput with significantly less horsepower.” He adds, “It’s a major leap forward for us.”

For more information, contact Tracey Southerland at 302-999-8000 or visit our website at www.precisionairconvey.

DISNEYLAND

TOM DUMEZ

RAY BARRY

JEFF GREEN

MAUREEN JUNG

TOM ADAMS

For more information, contact Cresswood at 800-962-7302 or visit our website at www.cresswood.com.

he new EcoPAC Baler from Precision AirConvey Corp., features a proprietary, rotary design that automatically densifies waste into a bagged, palletized cube for easy waste removal via lift truck and efficient transport for recycling while promoting a clean environment. Ideal for baling edge trim, label matrix and other converting, printing, mailing and packaging waste, the clever EcoPAC Baler collects and densifies the paper, plastic film, PSA or other waste material conveyed from a pneumatic trim system used in conjunction with a material-air separator while diverting the air to an acceptable location.

When the door is opened, a compact cube of baled waste compressed neatly inside a sealed plastic bag is revealed.

Developed in accordance with a variety of OSHA directives and standards, the EcoPAC Baler is designed as a sealed, self-contained baling system that prevents both the waste and associated dust from escaping into the plant or outer environment.

Featuring a 3.5 hour full-immersion industry-specific sales training workshop with Jeffrey Gitomer.

Also featuring: • • • • • • • •

Tom Adams on making you the key driver of business Maureen Jung, Ph.D, who focuses specifically on how to sell to doctors’ offices Jeff Green on data destruction sales through social networking Dr Fred Spada and Dr. Steve Swanson on emerging memory technologies and solid state drive data destruction Ray Barry on networking like a rock star The debut of two new sales videos and the Lawyers Office Marketing Program Tom Dumez, CHP on HIPAA now that HITECH is law Over 20 hours of industry education, the only secure destruction expo in the world, and the most complete demonstration of new industry rolling stock anywhere

On the web at bit.ly/NAID2012 www.bit.ly/NAID2012

R E G I S T E R T O D AY !

14 Security Shredding & Storage News. January / February 2012

NAID and the NAID logo are registered trademarks of the National Association for Information Destruction, Inc.

In the News Texan IT Pro Offers Advice on Data Protection

All Your Shreds are Belong to Us, Wins DARPA Prize

M

W

idland, TX–“The fastest growing crime in the United States is identity theft,” said the vice president for information technology and facilities at Midland College, Dennis Sever, at a recent business breakfast. “If you think you’re protected, you’re living under a false impression.” He added that protecting business information and that of employees is becoming increasingly important as innovations in technology offers new solutions in the face of increased sophistication among identity thieves. About 7 percent of the country’s population, or 9.9 million people, are victims of identity theft annually, Sever said, with Texas among the top five states with more than 24,000 identity theft victims reported in 2010, according to the Federal Trade Commission.

Sever suggests starting with the mail, shred any that comes with personal information if it doesn’t need to be stored Aside from mail, emails, text messages and Internet use obviously pose a big threat, Sever said. He advises that businesses and individuals also can register for “do not mail or email” lists that will for a time halt credit card offers and unsolicited emails. When emails are sent, Sever added, bots programmed to look for certain data or passwords can pick up this information, so he advises never to email private information, such as a Social Security number or employee ID, unless it’s encrypted. Passwords and phrases should also be complex passwords. Also brought up was the warning to dispose of old computers to ensure electronic information doesn’t get captured.

Sever said protecting secure data is vital for security and for the bottom line. According to the U.S. Department of Justice, businesses lost a total of $47.6 billion in 2010 to identity theft, and each business that reported identity theft lost an average $4,800 per victim and it took hours to resolve the identity theft issue. And any delay means it takes longer and costs more to solve the problem.

ashington–The Department of Defense’s Defense Advanced Research Project Agency, known as DARPA, may be better known for its experiments with robotic vehicles as a contest for engineering students, but it more recently turned to the problems of recapitulating shredded documents as a supposedly secure way of destroying evidence in criminal endeavors as well as for businesses who need to protect their secure documentation from everyone from identity thieves to corporate competitors. In October, DARPA challenged techies to build a computer program that could analyze bits of shredded documents in order to puzzle them back together. A trip to the shredder challenge website, www.shredderchallenge. com, shows how the task “to identify and assess potential capabilities that could be used by our war fighters operating in war zones, but might also create vulnerabilities to sensitive information that is protected through our own shredding practices throughout the U.S. national security community” was reached.

More than 9,000 teams registered to compete for the $50,000 prize, working to reconstruct documents from five separate documents shredded into 10,120 small strips and answer questions about the information contained in the documents. The number of documents, the document subject matter and the methods of shredding were varied to present challenges of increasing difficulty. The prize was won by the team “All Your Shreds are Belong To Us,” as announced in early December. The group was headed by programmer Otavio Good, who entered as a fun pastime and enlisted two acquaintances from the San Francisco Bay area. They spent over 600 hours programming what is really a jigsaw puzzle. The program looked at the scanned pieces and suggested possible connecting shreds to a human operator.

Dallas County Stops Using Criminals for Data Security

D

allas–For more than a decade, convicted parolees and probationers in Dallas County were allowed to work off community service hours by destroying sensitive documents, including birth certificates, copies of Social Security cards, court records, drug tests, and medical records, including psychiatric exams of juveniles, many stamped “confidential” and “privileged.” The little-known community service program, which was unknown as well to many high-ranking company officials, was abandoned when a local news channel questioned the practice. The origins of the program and who ordered it are still uncertain.

The work was done in a warehouse and organized by the Community Service and Corrections Department, which processed more than a half-million pounds of paper each year.

The program raises concerns not only about information security and identity theft but also about liability for the county if the information is misused. Dallas County is also violating federal HIPAA privacy rights for medical records. The county officials explained that the probationers and parolees are supervised when around the personal information, and no problem had ever come up until a dozen documents were deliberately smuggled out to be given to the news station and to the district attorney’s office. After the news station exposed the practice, County Judge Clay Jenkins stopped it and ordered an immediate review of the practice to determine how to protect this information in the future as Texas legislators work to pass a law banning the practice.

The county is exploring options, and county commissioners have recommended sending documents to a licensed and bonded company in the future.

info@alpineshredders.com

www.alpineshredders.com

Info Request #101

Security Shredding & Storage News. January / February 2012 15

nicki@acmllc.us

www.southeastrecycling.com 16 Security Shredding & Storage News. January / February 2012

In the News Research Shows Americans Still Prefer Print and Paper Communications, but Misconceptions About Environmental Sustainability Remain

I

f you prefer to read from paper instead of an electronic screen, you’re not alone. According to a recent survey commissioned by Two Sides, the fast-growing non-profit organization created to promote the responsible production, use and sustainability of print and paper, 70 percent of Americans, including 69 percent of 18- to 24-year-olds, say they prefer to read print and paper communications compared to reading off a screen.

Most of those surveyed also believe that paper records are more sustainable than electronic record storage (68 percent) and that paper is more pleasant to handle and touch than other media (67 percent). But survey results also show that many Americans still have misconceptions about the environmental impacts of print and paper.

“Even though most Americans still prefer print over electronic communications, they also have misconceptions about the effects of paper-based communications on the environment,” says Two Sides President Phil Riebel. “In fact, print and paper have a great environmental story to tell, and Two Sides is committed to setting the record straight using factual information from wellknown, credible sources.”

The Two Sides survey indicates a majority of respondents are concerned about the effect of print and paper production on forests and believe that there is a connection between the loss of tropical rainforests and the manufacture of paper, but data from a variety of sources show these beliefs to be unfounded.

“Authoritative sources like the U.S. Forest Service, the United Nations Food and Agriculture Organization and others report that the amount of forestland in the United States has remained nearly the same over the last century at about 750 million acres, and the major cause of global deforestation is not papermaking, but the conversion of tropical rainforests to agricultural land,” Riebel says.

While 96 percent of survey respondents said they believe recyclability is a sign of environmentally responsible products, most significantly underestimated the amount of U.S. paper that’s actually recycled each year. “Most people think the U.S. paper recycling rate is between 20 and 40 percent,” Riebel explains, “but American Forest and Paper Association data show that more than 63 percent of all paper used in the United States in 2010 was recycled. According to the U.S. Environmental Protection Agency, that’s more than any other commodity, including plastics, glass and metals. The industry has set a goal to exceed 70 percent of all paper recovered for recycling by 2020.”

The survey also found that more than half of respondents believe that electronic communications are a more environmentally friendly way to read books, magazines and mail. “That’s another myth that has been perpetuated by financial institutions, utilities and other organizations that are trying to save money by encouraging consumers to go green by going paperless,” Riebel says. “The fact is that both electronic and paper-based communications have an environmental footprint, and making both smaller is the right environmental choice.”

Earlier this month, Two Sides launched its U.S. website, www.twosides.us, as a resource for consumers, the media and others who are looking for a trustworthy resource for factual information on the environmental sustainability of print and paper. The website offers a “myths and facts’ section that dispels many of the common misconceptions about the medium’s environmental impacts, including citations from authoritative sources with links to original source documents.

jim.mcguire@shotguncapital.com www.shotguncapital.com

Reach More of Your Market ...

Advertise in Security Shredding & Storage News.

Call Rick Downing today at 440-257-6453 or email rickdowning@oh.rr.com.

www.chachkagroup.com chachka@chachkagroup.com

Security Shredding & Storage News. January / February 2012 17

In the News Congress to Review Update of FISMA, Work With Admin on Regs

W

ashington, DC–An update to the Federal Information Security Management Act is under review by members of Congress, and congressional staffers are reviewing a draft of the changes, according to Sen. Joseph Lieberman (I-Conn.) in a speech before the Homeland Security and Defense Business Council in Washington. Majority Leader Harry Reid promised the Senate will consider comprehensive cybersecurity legislation early next year, a goal it has been pursuing for the last three years. Sen. Tom Carper (D-DE) and Rep. Diane Watson (D-CA) both introduced a version of the FISMA update but could get no action on it.

Lieberman was not specific about FISMA, but he did discuss other aspects of a comprehensive cybersecurity legislation, including directing the Department of Homeland Security to work with industry to identify and evaluate the risks to the country’s most critical cyber-infrastructure, and to develop risk-based performance standards that these crucial systems would have to meet, said Lieberman,“Once this has been done, owners and operators would select security measures to safeguard their systems. These plans would be reviewed by DHS cyber-experts to ensure they improve security. Our legislation would also provide liability protection for owners and operators who are in compliance with their approved security plans.” DHS would help create the cybersecurity “best practices” as a model for the private sector and as a way to create industry-wide standards of care. DHS would have the statutory responsibility to ensure that the government is sharing threat, vulnerability and mitigation information with the private sector. Lieberman said to better protect civilian networks, DHS should rely on the Defense Department’s National Security Agency.

Another part of the bill addresses hardware and software cybersecurity and asks agencies to purchase from vendors who “bake” security in from the beginning of development Howard Schmidt, the White House cyber coordinator, told Federal News Radio the new cybersecurity research and development strategy released last week by the White House works to address the situation with upcoming generations of technology. Schmidt said the White House has been working with the Hill to get the cyber legislation through and is very appreciative of the work Senator Reid has been doing.

www.CertifiedElectronicsRecycler.com

Illinois Ban on Landfill E-Dumping Catches Up With Consumers

S

pringfield, IL–Televisions, computers, printers, DVD players and 13 other common electronic devices can no longer be dumped in the garbage according to a new Illinois law that just took effect, the Illinois Electronics Products Recycling and Reuse Act. It mandates that they be taken to a registered recycler or electronics collection site for reuse or recycling.

However, it appears that the citizens of the state have not been keeping up with the law’s passage and may be surprised when items such as monitors, electronic keyboards, FAX machines, VCRs, portable digital music players, video game consoles, small scale servers, scanners, electronic mice, digital converter boxes, cable receivers, satellite receivers and digital video disc recorders are no longer picked up curbside. Waste collector Waste Management said any of the excluded electronic items that customers dispose of with their garbage will be left at the curb with a note informing customers of the new law.

The act was passed in 2008 with manufacturers told to establish a recycling program for electric products if they sell them in Illinois, and now this law prohibits disposing of these items as part of normal garbage collection. State Sen. Susan Garrett (D-Lake Forest), was the chief sponsor of the act and wanted to keep harmful materials out of the landfill. And just reducing the amount of waste in the landfill is also a vital part of it, said Walter Willis, executive director of SWALCO, the Solid Waste Agency of Lake County. In 2011, SWALCO recycled about 2 million pounds of electronics. The recycling ban is expected to grow that amount by 50 percent.

American Sustainable Business Council Endorses Responsible Electronics Recycling Act to Limit Toxic E-Waste

T

he Coalition For American Electronics Recycling (CAER) today announced that it has received the endorsement of the American Sustainable Business Council (ASBC) in support of federal legislation that will restrict export of toxic electronic waste (e-waste) from the U.S. and spur creation of tens of thousands of jobs through expansion of the domestic recycling industry.

“The Responsible Electronics Recycling Act addresses two important issues at once: reducing the dumping of toxic e-waste in developing nations and fostering economic and job growth for responsible recycling companies in the U.S.,” said Richard Eidlin, the ASBC’s Policy Director. “The American Sustainable Business Council sees the Act as another critical step towards reducing the broad health and environmental risks associated with hazardous and toxic chemicals. Communities across the U.S. stand to benefit from the new, high quality jobs that the fledging E-Waste will create with passage of this legislation.”

Through education and advocacy, the ASBC works to influence the creation of public policy that acknowledges the large and growing universe of sustainable and socially responsible businesses and social enterprises. The mission of American Sustainable Business Council is to advance public policies that ensure a vibrant, just, and sustainable economy. Founded in 2009, the ASBC is composed of forty-five business organizations that represent more than 110,000 businesses and over 200,000 individual entrepreneurs, owners, executives, investors and business professionals.

CAER includes 35 U.S. companies with 89 facilities involved in all aspects of the domestic electronics recycling and disposition industry, with operations in 32 states as well as the District of Columbia. (Complete membership list on the CAER website). Also supporting the legislation are Hewlett-Packard, Dell, Apple, Samsung, Best Buy and LG. Introduced in June, the Responsible Electronics Recycling Act (HR 2284/ SB1270) would restrict toxic e-waste exports to developing countries that lack adequate safeguards for the environment and workers.

The Coalition is continuing to work with both the House Energy and Commerce Committee and the Senate Environment and Public Works Committee, which have jurisdiction over the bills as well as other Congressional offices who would benefit from the job creation from this legislation.

davidwagger@isri.org

18 Security Shredding & Storage News. January / February 2012

CRE_thirdpagead.pdf

1

11/16/10

4:44 PM

Lock America Now Has O.E.M. Style Cabinet Locks!

Cabinet Locks

NEW! Compatible Padlocks.

One Key Fits All! Resettable Combination Padlocks

Order locks to your #743 key, to your existing code, or to a new registered code* *Large volume orders required for registered codes

Now your can throw your keys away and set your own code

9168 Stellar Court, Corona, CA 92883

Toll Free: (800) 422-2866 Tel: (951) 277-5180 Fax: (951) 277-5170 Website: www.laigroup.com Email: sales@laigroup.com

Info Request #152

www.wasterevolution.com Info Request #157

www.ipsbalers.com

JeffSMSmemory@gmail.com

www.smsassembly.com

Info Request #145

www.creweb.com/secure Info Request #121

Security Shredding & Storage News. January / February 2012 19

www.jakeconnorandcrew.com

Info Request #105