Security Shredding & Storage News MarApr 2012

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Volume 9, Issue 2

March / April 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 Big Dog Shred Bins - 15 Bomac Carts - pg 14 Jake, Connor & Crew – pg 2

Equipment Financing TransLease Inc – pg 6

Lock & Locking Systems Lock America Intl. – pg 12

Mobile Truck Shredders Alpine Shredders Ltd – pg 19 AXO Shredders – pg 6 Shred-Tech Limited – pg 14 ShredFast – pg 10 ShredSupply – pg 11 UltraShred – pg 20 Vecoplan LLC – pg 13

Planning for the Future – CRE’s X-Ray Vision

Moving Floor System Keith Manufacturing – pg 5

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Paper Balers IPS Balers, Inc. – pg 12

Replacement Parts Dun-Rite Tool – pg 7

Stationary Shredders & Grinders Allegheny Shredders – pg 5 Cumberland Recycling – pg 17 UNTHA America – pg 15

Waste commodity purchasers Commodity Resource & Environmental – pg 8 Dan-Mar Components – pg 13

BY P.J. HELLER

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arry DeWitt can certainly be excused for not being the biggest fan of digital technology.

After all, Commodity Resource and Environmental (CRE), the business he founded 32 years ago and which has grown into one of the world’s leading silver recovery companies, has watched as digital technology has replaced silver-based films in a variety of applications.

In graphic arts and publishing, for example, the volume of silver-based film handled by DeWitt’s company has fallen from as much as 30 percent to about 5 percent today as the industry has jettisoned film and transitioned to computer-to-plate technology.

Even more dramatic has been the move away from camera film — witness the situation with Eastman Kodak Company which has filed for bankruptcy protection — to digital cameras.

“Not many people are shooting film in their cameras any more,” DeWitt notes. “I was the longest holdout on that just because of my business . . . but I’ve had a digital camera now for about eight or nine years.”

DeWitt sees much the same thing ultimately happening to X-ray film, even though the volume of that material processed by CRE has steadily increased over the last five years.

The company currently processes some 2.5 million pounds of X-ray films monthly. Of that amount, about 45 percent is film jackets and associated paperwork with the balance

being film for silver recovery. The company also accepts shredded film.

The biggest increase in volume, which he describes as a “major spike,” came in 2011, with the financial collapse of Gemark Corp., a major precious-metal refining company in New York. Gemark and seven affiliated companies has since filed for Chapter 7 bankruptcy.

“Even though we had steadily grown over the last four or five years at a nice rate, this was a big spike,” DeWitt says of the Gemark material. “We weren’t prepared for it.

“We always have contingency plans, a lot of which are based on a crisis in wrong

Continued on page 3

Inside This Issue

4 Baling Wire-Tie Systems

8 Value: What Your Customers Really Want – Learn How to Sell Based on Value, Not Price 12 An Outline for Dealing with HIPAA Audits 15 Careers in Data Security Growing Stronger 18 ISRI Blogs About E-Recycling

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Info Request #105

2 Security Shredding & Storage News. March / April 2012

Security Shredding & Storage News

Planning for the Future – CRE’s X-Ray Vision

Continued from page 1

PUBLICATION STAFF Publisher / Editor Rick Downing

Contributing Editors / Writers Theodore Fischer P. J. Heller Nathan Jamail

Production / Layout Barb Fontanelle Christine Pavelka

Advertising Sales Rick Downing

Subscription / Circulation Donna Downing

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direction,” he adds. “This was a crisis in the right whether from a hospital or a records storage direction.” company, come in jackets with the X-rays inside To handle the increased volume, CRE added the jacket along with all the radiology reports,” three new buildings and increased capacity and he says. “So we started emphasizing our HIPAA ramped up staffing at its plant in Mojave, about (Health Insurance Portability and Accountability 90 minutes from the company’s headquarters in Act) compliance, then moved forward with getting Burbank, Calif. certified by NAID.” “For awhile we had a horrendous backlog, but The company also constructed another building once we got the buildings up and the staff trained, we and purchased a shredder and an auto-tie baler. were able to increase production enough to handle “We started promoting the fact that not only not only what was coming were we NAID certified but in on a regular basis, but to we were the only refiner reduce the inventory backlog destroying records in-house, “We will still be in business we accumulated because of not sending them out or but it won’t be in the business the spike in the business,” overseas,” DeWitt says. we are in now. We’re not in DeWitt says.

After shredding the the business as it existed By the fall of 2011, the documents, the paper is sold workload stabilized. to mills in the U.S. 20 years ago or even 10 While hospitals, medical DeWitt adds that years ago. But 10 years facilities and document nothing that is sent to CRE from now, we won’t be in the management companies still ends up in a landfill. After the business as it exists today.” have decades of stored X-ray silver is removed from X-ray films that eventually will films, the remaining PET need to be destroyed, DeWitt plastic is sent to recyclers. sees a diminishing market as digital continues to And after silver is removed from photo processing make inroads. chemicals, the resulting industrial waste is sent to “Five years ago, if you were interviewing me, evaporation ponds at a waste facility.

I would have said it’s a maturing business,” says CRE in the last year also purchased chopping DeWitt, who uses the same description to describe equipment to handle micromedia, such as microfilm the situation today. and microfiche. It reduces the material to NAIDTwenty years ago, he gave the market another 10 mandated chop size of one-eighth of an inch. It also years before predicting its demise. Today, he makes installed a grinder for hard drive destruction. the same prediction.

Those purchases were all part of phase one of As the market changes, with X-ray film a multi-phase plan for document destruction. The eventually going the way of graphic arts and photo other phases had to be put on hold when business films, he expects CRE will change with it. spiked in 2011 due to the Gemark situation.

“Hopefully we’re smart enough to plan beyond DeWitt notes other reasons why the business that,” he says. “We will still be in business but it has continued to grow, including the fact that won’t be in the business we are in now. We’re not smaller, less environmentally friendly refiners have in the business as it existed 20 years ago or even 10 disappeared from the scene. Rising silver prices years ago. But 10 years from now, we won’t be in the have also encouraged companies to purge films business as it exists today.” they are no longer are legally required to maintain.

“You can’t sit still,” he adds. “You have to keep Eliminating those files also frees up much needed moving forward. You have to have plans . . .” valuable space in hospitals, medical facilities and DeWitt has already made some moves to remain document storage facilities. viable in the future. Chief among them was to begin CRE is able to source those documents based offering document destruction services at CRE for on referrals and its reputation in the industry. film jackets and radiology reports.

Newcomers may find it somewhat more challenging, “Our primary goal was to get the film with DeWitt says. the silver on it, but the marketing part was having That’s because some people got into the market the in-house capability to destroy the records that when silver prices were rising, collected the films, and accompany the film,” DeWitt explains. “It gave then disappeared without ever paying their clients. people more reason to use us as their silver refiner.

“They appear when the market is up and It has been a very big plus for us.” disappear when the market is down,” he says.

Along with the effort, CRE became the first His advice to medical facilities, hospitals and silver refiner in the U.S. to be NAID certified. NAID document storage facilities is “to do your due (National Association for Information Destruction) diligence. Make sure the company you’re dealing is the international trade association for companies with is legitimate.” providing information destruction services. CRE also DeWitt admits it’s difficult to predict where became heavily involved with PRISM (Professional silver prices will go in the future.

Records & Information Services Management), the The swings in silver prices are the result of “so trade association for the commercial information much turmoil right now in Europe and even our own management industry. country as far as value of dollar,” he says, adding “The X-ray films themselves are not NAID that many of the increases and decreases in silver certifiable, but most of the X-ray films we get, Continued on page 7

Security Shredding & Storage News. March / April 2012

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Security Shredding & Storage News

Baling Wire-Tie Systems Automatic wire-tie systems make baling safer, faster, and less laborintensive, but recyclers must know certain technical, maintenance, and baling wire basics to get the most from this equipment.

BY THEODORE FISCHER

F

or more than 30 years, recyclers have realized the benefits of balers with automatic wire-tie systems, or auto-ties. Such systems reduce labor costs because they don’t need workers to manually tie wire straps around bales.

Auto-tie manufacturers frequently boast that their systems are “handsoff ” operations that require only someone to haul away the finished bales. Fewer people involved in the baling process also reduces the potential for injury. Autoties lower processors’ material costs by using baling wire more efficiently. And they create tighter, denser bales, which is a plus for scrap companies that ship overseas. “To get as much material as possible in 40-foot overseas containers, you need really square, compacted bales,” one baling wire distributor says.

“Auto-tie machines have become extremely popular because you get more compaction, a bale that’s more of a cube, and a lot more weight per square foot in the containers.”

With these advantages, auto-ties can be a powerful blessing, but they also can be a mixed blessing, recyclers say. “When auto-ties work right, you love them,” says Marty Davis of Midland Davis Corp., a scrap processing company in Moline, Ill. “But most people will tell you auto-ties account for most of the downtime for a baler with that type of equipment. You have to maintain a certain number of parts on hand [to fix things] that typically go wrong.” Auto-tie manufacturers say they continue to improve the reliability of their systems, making this equipment more valuable—and less of a headache—to recyclers.

Baler and Auto-Tie Basics

B

alers come in two basic configurations—vertical and horizontal—with automatic wire-tie systems offered exclusively on the latter. Vertical downstroke balers are common in grocery stores and home improvement centers for crushing corrugated containers, though some recyclers also use them to compact paper, light nonferrous metals, and copper wire. They have a single hydraulic cylinder on top that pushes a compression ram down into a rectangular charging box to press the material into bales. These are hands-on operations: Workers must manually load material into the machine and bind the bales, using roughly 14-foot lengths of baling wire.

Most larger recyclers operate horizontal balers that create bales by compressing material horizontally rather than vertically. These balers, effective for processing plastics and metals as well as paper and corrugated, come in three basic configurations: single-ram, closed-end balers, often used for baling slippery material such as PET, HDPE, or coated paper; single-ram extrusion balers, touted for their ability to handle a high volume of material relatively quickly; and two-ram balers, valued for their versatility as well as their capacity.

Auto-ties are almost always found on either single-ram extrusion balers or tworam balers. “To manually tie a bale of paper, plastic, or aluminum cans just isn’t feasible,” Davis explains. “Auto-ties make the horizontal baler feasible” for processors of those materials.

Auto-tie systems connect to the discharge area of the baler. Though the tying mechanism on a single-ram extrusion baler is different from that on a two-ram baler, the general principle is the same: As material emerges from the baling chute, the system automatically encircles the material with wire, tightens the wire, twists it into knots, and cuts it. The number of wire strands needed around the bale depends on the material being processed, though five wires per bale is common. Material with excessive “memory,” such as plastic bottles, requires more strands than material such as sheet metal, which holds together tightly on its own. Auto-ties typically operate based on programmable controls, some of which come with touch screens.

4 Security Shredding & Storage News. March / April 2012

Baler manufacturers purchase auto-tie units and offer them as options on their balers. Thus, baler customers usually have no choice in the brand of auto-tie equipment they get. Balers without auto-ties often can be retrofitted with this equipment. Manufacturers of auto-ties compete on features such as ■ feed and tension speed, which is expressed in feet per second, usually ranging from 8 to 14 feet; ■ style of knot produced, identified by the number of “twists”—usually three to four, though one wire manufacturer pinpoints the ideal number of twists at 3¼; and ■ cycle time, measured in seconds to produce and twist a wire, number of ties per hour, or both. One manufacturer notes that overall cycle time varies based on the bale’s size and the baler’s opening.

Every auto-tie manufacturer also claims its systems have unique attributes.

One company says its spreader bar houses 80 percent of its machine’s wear parts, such as twister pinions, bushings, and cutters, which makes it easier to perform maintenance. “By removing two pins, you flip up the yoke, and it’s all right there,” a sales manager says. “You can change all your wear parts in less than five minutes, as opposed to 30 to 45 minutes in the older models, so there’s no downtime.” In addition, with this unit, the operator can change wear parts while a bale is in the chamber.

Another company attributes the success of its 30-year-old model to its speed (a three-second cycle time, or potentially 1,200 straps per hour) and versatility (able to accommodate virtually any recyclable material). The company’s 20-yearold, higher-tech unit has advanced, solid-state electrical controls and systems and the capacity to use a wide range of galvanized wire (10 to 13 gauge), with which it produces a four-twist knot.

This manufacturer’s latest auto-tie model features what it calls the industry’s first removable core, which contains 80 percent of the system’s wear parts. Users can take the entire core out of the machine, replace it with a spare, and get the unit operating again in less than five minutes, the company says.

Another manufacturer’s wire-tie system for two-ram balers can create shorter, 7.6-inch wire knots using 9- to 12-gauge wire. Equipped with an ambidextrous accumulator and payoff arm that can be set to provide operator access on the right or the left, this unit allows the wire entry to be mounted tightly against the baler. Its 120-inch, reinforced crossover tube encloses the wire, and an anti-fouling wire payoff ensures smooth, consistent wire feeding and allows operators to change wire stands without using tools.

Though prices for wire-tie systems vary, they begin around $25,000, either installed on a new baler or retrofitted to a baler in the field. As a rule, auto-ties do not come “off the rack.” Each system “has to be custom-fitted to the baler,” says one manufacturer. “The chamber openings are different, depending on the kind of baler you have. We build to order, basically.”

Recyclers interested in adding an auto-tie system to an existing baler should be prepared to answer questions like those on the retrofit questionnaire one manufacturer sends to prospective customers: What is your baler’s brand and model number? What material does the unit bale, and does it include liquids?

What is its production rate? Does the baler have a release door? Can your hydraulic source provide 13 gallons per minute at 1,200 pounds per square inch?

Can your electrical source provide clean 110 volts/10 amps of power? What is your desired wire size? Are the wire infeed and control box to the right or left when facing the strapper and discharge nozzle? Do you have any control interface or special control considerations? What’s your desired delivery date?

Continued on next page

Security Shredding & Storage News Continued from previous page

Ties That Bind

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key component of every auto-tie system, of course, is the wire it dispenses.

There are two principal types of baling wire: galvanized and black annealed.

Galvanized wire, which is coated with zinc for corrosion protection, is made from high-carbon wire rod, which gives the material maximum tensile strength, one wire manufacturer says. “People like galvanized wire because it slides easily, it’s slippery, it’s easier to cinch down, and it’s less prone to rust when stored outside,” a wire vendor says, noting that the majority of his customers buy galvanized wire. Galvanized wire typically is more expensive than black annealed wire, however, and its higher tensile strength reduces its elongation capacity—the amount of stretch, or give, in the wire—which means it’s more likely to break than lower-tensile, higher-elongation wire.

Black annealed wire, which has a black oxide finish to prevent rust, is somewhat softer because it’s made from a medium-carbon wire rod, which gives it “a good balance between tensile strength and elongation,” one manufacturer says on its website. Some recyclers use black annealed wire “because the slipperiness of galvanized wire works against you if you’re looking for nice, tight tie-offs,” the wire vendor says.

Baling wire comes in various gauges, normally ranging from 11 to 14 for scrapyard baling purposes. Gauge numbers refer to the diameter of the wire, with the wire’s size—and, hence, its strength—decreasing as its gauge increases.

An 8-gauge wire, therefore, is thicker and stronger than a 14-gauge wire. The goal for many recyclers is to save on wire costs by using the lightest gauge wire that still will do the job. Auto-tie wire is sold by the pound in 50- and 100-pound boxes as well as in spools, or coils, that can weigh 1,500 to 2,000 pounds.

Though baler manufacturers recommend the best wire for their machines, the baling wire you should use depends mainly on what material you’re baling.

“You want a heavier gauge if you’re baling commingled scrap—metals, plastics, foam, and materials that have more memory—just to make sure it has the strength,” one wire seller says. “If you’re just baling something like newspaper or corrugated, you can maybe go a little bit lighter gauge to get more payoff for the wire—more footage per spool.”

The brand of wire you buy makes a difference, wire manufacturers say.

“People say ‘wire is wire,’ but sometimes a manufacturer will run annealed wire through its furnace a little bit longer, or it might put a little more zinc on galvanized wire,” a wire manufacturer says. “It’s important to know the elongation of the wire and its tensile strength because big scrap dealers, towns, or cities can make bales in excess of 1,800 pounds, and if the wire breaks, it’s not going to be pretty.” Steel wire can be annealed, or heat-treated to achieve specific metallurgical properties, in either a strand or batch process. In the strand process, the wire is heated for a specific number of minutes then cooled rapidly, one manufacturer explains on its website. In a batch process, the wire is heated for several hours then cooled slowly. The manufacturer calls it a “metallurgical fact” that the longer heating and slower cooling cycle of batch annealing gives wire much greater elongation—a minimum of 25 percent in a 10-inch sample—than strand-annealed wire.

The bottom line is, you have several wire choices for your particular operations. Davis says he relishes the higher quality of wire now available for his recycling operation. Wire manufacturers “have made improvements in the wire, so maybe you can use one gauge lighter wire than you previously used, which will have some net weight savings over time,” he says.

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Staying Fit to Be Tied

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egular preventive maintenance is essential to keep auto-ties functioning properly and prevent them from idling your entire baling operation. “What happens is, if the machine isn’t maintained properly, the wire gets jammed up in there or the tie isn’t tight enough,” one equipment dealer says. “There are [wear] parts that periodically have to be replaced—guides that direct wires around the machine, rollers that force wires around the tracks.” Poorly maintained auto-ties can tie baling wire improperly, causing bales to break apart, which can lead to operational and safety problems. Regular maintenance, such as regularly changing the unit’s oil and keeping it clean, also reduce overall wire waste and maximize uptime. Auto-tie vendors offer training to their customers, either at the customer’s location or general training at central sites nationwide. One manufacturer’s training course covers topics such as machine operation, settings and adjustments, preventive maintenance, safety, and troubleshooting.

Auto-tie maintenance also is vital for operating these systems safely. Like the balers to which they’re mounted, auto-ties can pose a variety of potential safety hazards. “A wire-tier on a baler is a very dangerous place, where wire comes shooting around that track very quickly,” one manufacturer says. “Always have

Continued on page 6

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Security Shredding & Storage News. March / April 2012

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Security Shredding & Storage News

Baling Wire-Tie Systems Continued from page 5

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safety glasses on when you’re near it,” Davis advises, “because wires can break or fly around. If you don’t have safety glasses on, you could catch something in your eye.”

In the past year, one manufacturer came out with what it calls “wing guards” that mount to the frame of its auto-tie systems and “protect personnel from loose wire and anything like that.” The auto-tie manufacturer with the removable core technology says its system has a safety latch feature that allows a worker to remove the core and clean out hard-to-reach obstructions safely and quickly. The worker can take the core to a safe work station, where tools are readily accessible, to make repairs.

New Directions

T

Financing The World Of Transportation Terry Lee

hough few in the baler industry anticipate revolutionary auto-tie changes in the near future, new tweaks continue to appear. For example, one manufacturer of auto-tie balers for single-ram extrusion balers now offers a hydraulically driven gear twister that eliminates twister hooks and produces a knot with no pigtails, the extra wire beyond the knot. The company says this innovation cuts wire consumption and related costs by at least 10 percent.

Another dealer is excited about an “interesting wrinkle” on the auto-tie from overseas. As he explains, “most American brands drive the needle carriage with a double roller, and some models do it with a hydraulic cylinder. The imported balers use a combination of the two. I don’t understand why it’s so much faster, but it is faster.”

The same foreign manufacturer also produces an unusual auto-tie system for single-ram, closed-end balers, he adds. Most such balers are manual tie, though a U.S. manufacturer made an auto-tie version of its single-ram, closed-end baler years ago. With such a baler, users can more easily handle slippery materials like plastic bottles and get the speed, efficiency, and safety advantages of auto-ties without the expense of a two-ram baler, the dealer explains. This new system “fills a nice niche” and gives recyclers another auto-tie option, he says.

Info Request #160

Theodore Fischer is a writer based in Silver Spring, Md. This article originally appeared in the Jan/Feb 2012 issue of Scrap magazine (www.scrap.org). Reprinted with permission.

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Security Shredding & Storage News

Planning for the Future – CRE’s X-Ray Vision Continued from page 3

prices are due to speculation, just as with the price of oil and other commodities.

“These are all commodities . . . a lot of them are highly speculative,” he says.

As far as a forecast for 2012, DeWitt puts silver at $35 an ounce. Within three years, he predicts the price will hit $40 an ounce.

One prognosticator, he notes, pegged the price of silver at more than $200 an ounce by 2013.

“Nobody knows for sure. If I knew all those answers (concerning the price of silver), you’d be calling me long distance to my beach house in the Caribbean,” he says with a laugh.

CRE pays clients either “spot pay” or on a “refining basis” for their X-ray film. Spot pay is based on the net weight per ounce of silver in each pound of film multiplied by the CRE Tradable Silver Market on the date of receipt. An average film lot of .04 ounces per pound and a silver market rate of $32.79 would equal a spot payment of $1.31 per net pound; a shipment of 10,000 pounds of film would

result in a payment of $13,100.

Clients who elect to be paid on a refining basis have their payment based on the net silver yield in the process, minus a per pound refining charge. This can result in higher payments for clients whose films have higher silver content due to age, exposure or brand. CRE guarantees the payment on the refining basis will not be lower than the spot pay.

With CRE seemingly well positioned for the future, DeWitt, who is 71 years of age, may take a step back and “slow down.” He has had offers to sell the business in the past and has also looked into the possibility of selling it to the employees, many of whom have been with him for years.

With the inroads of digital, there is still one thing that he hasn’t been able to solve.

“I haven’t figured out a way to recycle pixels yet,” he says with a laugh.

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Security Shredding & Storage News

VALUE

H

Info Request #121

Learn How to Sell Based on Value, Not Price

BY NATHAN JAMAIL

ow many times do you hear, “The customer only cares about the price”? Most companies or individuals will say they hear it all the time. Price is only an issue when it is presented as the only benefit (or primary benefit). Regardless of industry, product and economy, a company does not need professional sales people to sell price. For that, all they need is a website or catalog and a payment processor.

If a sales organization wants to increase sales and margin, they need to teach the sales team how to establish real value and once the sales teams are taught this, they need to practice doing it over and over again.

The difference between an amateur and a professional is a professional practices their skills; they don’t just play the game or go on sales calls assuming the sales call is their ‘practice.” The key to overcoming price is not a scripted catchy phrase, rather it is learning how to create a real value partnership and in order to do that, one must practice.

1 ) Write down your questions and take them with you. This does not make a sales person less of a professional or less of an expert. In fact this will allow you to show a client or prospect how important it is to fully understand their needs and desires. In order to do this correctly, the order of your questions is important as well. Start your questions wide: industry-company-person-current vendor and then finally about the product or service.

Stop Selling Value Like Everyone Else

3 ) Practice your sales calls every day before you go on them rather than simply talking about the appointment afterwards and call it practice.

Practice, practice, practice.

S

www.creweb.com/secure

What Your Customers Really Want

elling value is more than making statements like, “We offer great customer service,” “We have experience and expertise,” or “Our people make the difference.” When asked about the value offered, these are the most common answers given from sales people and sales leaders. This is no different than a person going on a job interview and telling the interviewer that they should hire them because they are a self-starter, team player, people person, motivated and loyal. All of these answers are generic and do not differentiate you from the next person.

Value is determined by the prospect. ‘What value do you add?’ is a trick question because it can only be answered after the sales professional understands what the prospect or client defines what they believe is value.

To determine what the customer perceives as value, a sales professional must ask the prospective customer purposeful questions and ask a lot of them. The more the sales professional learns and understands, the more likely they will be able to establish their value according to the prospect. Although many sales people know this belief, very few truly implement it. Too many sales people flood a prospect with information on what they have to offer without knowing whether or not what they are saying will be a value to a client or prospect.

It cannot be stressed enough-ask questions first before explaining the value you bring!

Asking questions is more than just asking openended or leading questions. Most sales people ask questions like, “Would it be a benefit to you if we could give you more of this for less money?” In most cases it is a rhetorical question that the customer has no choice but to respond to with a ‘yes.’ That is like asking a child if they’d like to have more candy, play all day and not do homework. Asking purposeful questions allows the sales professional to truly understand the prospect, and not just their service needs so they can ‘sell’ them.

Here are three easy steps to make sure you’re able to sell on true value and not price.

8 Security Shredding & Storage News. March / April 2012

2 ) Help the prospective client understand what makes you and your company successful. A partnership is a two way street–so remember the sales professional is responsible for both ways.

This means a sales professional shares with the prospective client what makes them successful without making it difficult or inconvenient for a prospective client but shows the why and value for both sides.

Final Thoughts

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his goes for all sales leaders and sales professionalsif the sales leader does not mandate ongoing practice and get involved themselves then it will never happen. This is just like a professional sports team that will not practice if the coach does not require it and work on the field with the team. Second thought–if the prospect cannot truly afford the product or service the sales professional is offering, then do not lower the price and the perceived value. Instead, find a new prospect. By admitting that your product is not a fit, you will gain more clients long term than force feeding a product or service and losing value along the way. Lastly, every customer/client wants the most for the lowest price. This is not a bad thing once a sales professional learns how to help the prospect understand they really want success for the best price.

Success cannot be provided by just a vendor, rather it can only be provided by a true partner. Sales professionals need to prepare and practice so the next time the prospective client says, ‘I want the cheapest price,’ they are confident and ready to take control of the sales call and never sell (or lose) on price again.

About the Author

Nathan Jamail, best selling author of “The Playbook Series,” is also a motivational speaker, entrepreneur and corporate coach. As a former executive for Fortune 500 companies, and owner of several small businesses, Nathan travels the country helping individuals and organizations achieve maximum success. A few of his clients include Fidelity, Nationwide Insurance, The Hartford Group, Cisco, Stryker Communications, and Army National Guard. To book Nathan, visit www.NathanJamail.com or contact 972-377-0030.

In the News English Scientists Devise “Unprinting” Device

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ambridge, England—Scientists at the University of Cambridge have published a study in Proceedings of the Royal Society, whose lead author is J.M. Allwood, that describes a method they have developed for removing ink from paper. Toner ablation, deemed a “laser unprinter,” uses a toner and laser combination to remove the ink, with the device shooting a range of laser bursts, from “nanosecond pulses” to long-pulsed beams.

According to the researchers, “Toner-print removal from paper would allow paper to be re-used instead of being recycled, incinerated, or disposed of in landfill ... [which] could significantly reduce the environmental impact of paper production and use.”

The ablations are done without damaging the paper by using a green laser light that is readily absorbed by dark toner but goes through cellulose fibers in paper without harming them.”

Today’s ways of recycling paper use a re-pulping process, which does have an environmental impact, as far as electricity usage, CO2 output, and use of fresh water. Allwood’s team believes its method could cut paper recycling carbon emissions from 50% to 95%. It would also be a way of assuring security for old paper records without destroying them. However, there is as of yet no plan for a commercial unprinting device.

Shotgun Capital Advisors to Conduct 2012 Document Destruction Industry Benchmark Study

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hotgun Capital Advisors, LLC launched their annual Document Destruction Industry Benchmark Study in early March. All owners of independent document destruction companies are encouraged to participate in the study by completing an online survey.

“The document destruction industry experienced very solid growth and profitability in 2011” said Jim McGuire, President of Shotgun Capital. “Our impression is that many industry players benefitted from increased customer activity along with robust recycling values throughout the year. Our 2012 Study intends to identify the industry-wide impact of these trends.”

Participation in the study is highly encouraged for business owners. All participants that complete the online survey will receive a free copy of our comprehensive industry report which includes a detailed analysis of the data. Individual company data will be maintained in strictest confidence and will be used only in pooled analysis to identify industry trends and benchmarks.

If you would like to participate in the study and do not currently receive the Shotgun Capital Document Destruction Industry Report, please contact Jim McGuire at (817) 421-5940 or email jim.mcguire@ shotguncapital.com.

we:flourish Co-locating Events:

CRE Endorsed by NAID for Micro Media Destruction

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ommodity Resource and Environmental, Inc. (CRE) a Burbank, CA. based silver refining company, has recently been endorsed by The National Association for Information Destruction (NAID) for Micro Media Destruction. This is in addition to the Paper/Printed Media and Computer Hard Drive Destruction that they were approved for in June 2011. CRE’s plant based operation is based in Mojave, CA with Transfer Processing Facilities in Burbank, CA and Phoenix, AZ. CRE was founded in 1980 as a full-service silver recovery/refining company. The company’s primary customers include records management and records destruction companies, though the company also has contracted arrangements with many hospitals and medical groups performing radiology services.

The company offers refining services to extract silver from scrap X-ray films.

CRE refines more than 24 million pounds of scrap X-rays and associated radiology documents for silver recovery and destruction annually. The company’s silver refinery occupies 5 acres in Mojave, CA.

Subscribe to Security Shredding & Storage News.

Call today 440.257.6453.

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Security Shredding & Storage News. March / April 2012

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Security Shredding & Storage News. March / April 2012 11

In the News OCT Issues First Settlement of Data Breach; BCBS TN to Pay $1.5 Million

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12 Security Shredding & Storage News. March / April 2012

ashington—BlueCross Blue Shield of Tennessee agreed to pay $1.5 million to settle potential HIPAA violations in the 2009 theft of 57 unencrypted hard drives containing health information from a network data closet at a leased facility in Chattanooga. This was the first case settled by the Department of Health and Human Services related to the HITECH Act Breach Notification Rule. The stolen data were audio and video recordings of BCBS Tennessee customer service calls. They included names, Social Security numbers, diagnosis codes, dates of birth and health plan identification numbers for over 1 million BCBS members. The entity notified the agency of the breach notification report in November, and the Office of Civil Rights began investigating in January, finding that the plan did not have adequate physical safeguards and access controls to protect the data.

In addition to the $1.5 million settlement, BCBS Tennessee instituted a Corrective Action Plan that obligates BCBS Tennessee to provide OCR with its policies and procedures regarding risk management and physical access controls, distribute those polices and procedures to all members of its workforce who have access to electronic data, provide training to those workforce members, and conduct random monitor reviews to ensure that its workforce members are complying.

An Outline for Dealing with HIPAA Audits

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eawood, KS—In a February article in Corporate Compliance Insights, author Karen R. McLeese, who serves as vice president of employee benefit regulatory affairs for CBIZ Benefits & Insurance Services, takes on the Health Insurance Portability and Accountability Act Audit Police and its role in safeguarding private health information in the many public forums in which it now resides. HIPAA, she notes, covers health care privacy, electronic data interchange and the security of health data, and it works to assure the confidentiality of medical information. HIPAA was later amended under the American Recovery and Reinvestment Act of 2009 by the Health Information Technology for Economic and Clinical Health Act, which includes specific notification procedures for data breaches.

In addition, McLeese goes on, the HHS Office for Civil Rights has instituted a HIPAA Privacy Security Audit Program, whose main purpose is to see if covered entities and their business partners might need more guidance from the government, an exploration that will conclude at the end of this year. The audit includes provision of documentation of compliance efforts and a visit, followed by review and corrective activity.

McLeese offers a set of guides on HIPAA compliance, including the determination of whether the entity is a covered one, appointing a privacy officer and a security officer, analyzing and documenting personal health data and electronic versions of the same, reviewing and updating policies and procedures, and identifying employees with access to the data and training them on policies and procedures. Other safeguards include making sure agreements with business associates in the matter are in place and that they address security and breach notification issues, and developing processes to identify breaches, notify those affected, and maintain a record of breaches. The original article is at www.corporatecomplianceinsights.com.

In the News Infoworld Offers Guide to Data Destruction

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liminating data no longer needed is an essential part of information privacy. A recent article in Infoworld by Bob Violino explains that there are three ways to do this: overwriting, or covering up old data with new; degaussing, or erasing the magnetic field of the storage media; and physical destruction, such as by disk shredding. They may, of course, be combined, and each offers benefits and drawbacks. The larger and more sophisticated businesses have caught on, but some of the smaller ones have not.

The growth of cloud computing has added new questions about data controlled by cloud computing providers. Cloud service growth has led to far less dependence on physical destruction, but increasing complexity in even knowing where the data are being stored. Here, it is hoped that overwriting with new data being stored will solve the problem, but there are no guarantees.

Those who store data on site and not on the cloud should look at the costs involved in length of time needed, the cost of new storage disks, and certification and compliance issues.

Violino explains that overwriting is relatively easy and low-cost. But it can take a long time to overwrite a high-capacity drive and is not as secure as other methods, and necessitates high quality assurance. Following standards of the Department of Defense and the National Institute of Standards and Technology is cited as a way to assure best practices.

Degaussing can quickly erase an entire storage medium and is good when dealing with sensitive data, but it can be expensive and cause damage to hard drives and nearby equipment, negating warranties and service contracts. It also requires a well-trained staff.

Physical Destruction renders physical storage media unusable and unreadable.

It assures total data destruction but it is expensive and not a sustainable methodology. Some use scrap contractors to recycle the hard drives, but the SSSN - Mobile storage devices must be totally destroyed to assure privacy. For the entire story, Message - “Sometimes Big Is Just...Weird!” see www.infoworld.com/d/security/the-in-depth-guide-data-destruction-185776.

Check out www.CertifiedElectronicsRecycler.com to learn more about the program and how to become certified. Extensive implementation resources are available to program members. You may also contact David Wagger, ISRI’s Director of Environmental Management, at 202/662-8533 or davidwagger@isri.org.

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Security Shredding & Storage News. March / April 2012 13

In the News HIPAA/HITECH Audits Extend the Risk of Privacy Regs

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

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Info Request #157

ew York—Corporate Compliance Insights has published an article by Jo‑Ellyn Sakowitz Klein, senior counsel at Akin Gump Strauss Hauer & Feld LLP, to guide businesses in meeting the needs of health plans and health providers under HIPAA and HITECH and contend with the new audit program by looking at the effectiveness of their existing privacy compliance programs. The HITECH Act overhauled HIPAA in 2009, creating new privacy restrictions, extending HIPAA further by extending liability to business associates as well as traditional covered entities, creating new enforcement mechanisms and establishing a new breach notification requirement, as well as the establishment

by OCR of a pilot HIPAA privacy and security audit to look at compliance readiness.

Klein advises in the article that an entity should take five steps to be in compliance: 1) to know its HIPAA status to see if any of their business sectors meet the definition of a “business associate” of a covered entity; 2) to know its data flow into, within, and out of the organization, how it collects, creates, receives, uses, discloses, maintains, stores, transmits and destroys health information that is protected by HIPA and who is involved; 3) to learn from mistakes of the organization and others to prevent breaches, provide training for workforce members, and review policies and procedures; 4) to prepare for auditors by doing a self-assessment using HIPAA-mandated documentation; and 5) to prepare for breaches by developing a breach response plan, including roles and responsibilities of individuals within the entity and a review of business associate agreements.

Klein warns against waiting for regulatory certainty to act as there are not yet final HITECH regs, tailoring HIPAA policies and procedures to an organization and making sure they are operational, making sure a risk assessment reflects current operations and data flows, and relying on safeguard such as locks and physical privacy as well at technologies such as encryption and password protection. Klein also warns that business associate agreements can be complex, so all HIPAA-related contracts must be looked at carefully to apportion risks and responsibilities. Read more detail at http://www.corporatecomplianceinsights. com/how-to-reduce-hipaa-and-hitech-compliance-risks.

Paper is Still a Vital Part of Office Life and Must be Safeguarded

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14 Security Shredding & Storage News. March / April 2012

ew York—Forbes has published a post by Mark Emery, global director of consulting services at Recall Corp. that looks at the history of the “paperless office” and notes that it is still a goal that has not been reached. Paper, he says, “continues to be a dominant medium for mortgages, legal contracts and a number of other official documents that need to be carefully reviewed and signed every day,” adding that “organizations that don’t take secure storage and destruction of critical documents seriously are simply tempting fate.”

He recounts instances of identity theft and insecure record keeping including Dallas County in Texas that allow paroled prisoners to sort and shred confidential documents; four Massachusetts hospitals dumped records into landfills; New York City Police Department records containing sensitive information about the weapons of mass destruction task force were found in a Manhattan trash can; and paper votes from eight precincts were not counted in the Iowa Republican caucuses because they were lost.

Safeguarding paper records, Emery advises, can be done with a four-part program: 1) Limit personnel access. Secure the area where critical paper documents are stored and limit access to those who need the information, and monitor it.

Facial recognition or vascular-scan technologies, PIN-pad processors and swipe card-readers will help.

2) Invest in paper-saving technology. Make documents safe from fire and water. Investing in fire prevention systems and non-water fire suppressant alternatives will further minimize risk to paper records.

3) Consider moving records storage off-site. Of course, investigate the storage provider’s reputation and ask what security measures they employ.

4) Securely destroy unnecessary documents. The same personnel and security considerations taken with storage should apply to destruction, and assuring the proper responsibility for handling, transporting and destroying data records is critical.

In the News Careers in Data Security Growing Stronger

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pecial repor—The third annual Career Impact Survey of the International Information Systems Security Certification Consortium, or (ISC)2, which administers CISSP certification, shows that IT security is a good gig, and that CIOs should expect to pay very well for IT security professionals through the next several years. The survey at the end of 2011 and early 2012 measured attitudes about cyber security salaries, hiring budgets, threats and other topics, querying over 2,250 security professionals internationally. W. Hord Tipton, CISSP-ISSEP, CAP, CISA, executive director of (ISC)², said, “This data reflects the increase in security breaches we saw throughout 2011 and the fact that organizations, both in the public and private sector, are finally realizing the importance of implementing sound security programs that should be run by experienced and qualified professionals.”

Aggregate results from the report show the following: • IT security is a nearly full-employment market: 96% of the survey respondents are currently employed.

• Qualified security professionals can expect to increase their real income: Nearly 70% of respondents received a salary increase in 2011.

• Great opportunities for career advancement exist: While more than a third of respondents said they changed jobs last year, the majority said they made the change because they had opportunities for advancement.

• Layoffs/redundancies are not prevalent.

• Security is a priority staffing need, and hiring is on the rise. Some 62% reported that they are looking to hire additional permanent or contract information security employees in 2012.

• Security budgets are increasing: Some 30% of respondents expect information security budgets and equipment purchases to increase in 2012.

• The perception of the security threat is growing: 56% of those surveyed reported increased security risks in 2011.

• Finding the right people is challenging: The majority of those who hire said it has been “somewhat difficult” to find the right candidate.

And hiring can be a slow process.

• Only qualified individuals need apply: Of those hiring, 81% said an understanding of information security concepts is an important factor in their hiring decisions. And skilled, experienced and qualified professionals are difficult to find, but so is meeting their salary expectations.

Vecoplan Midwest Moves to New, Larger Facility

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ecoplan Midwest, a subsidiary of Vecoplan LLC in High Point NC, recently relocated to an 18,180 square foot facility located in New Albany, IN. According to Bill Miller, COO of Vecoplan Midwest, the move was necessitated by continuing growth of their shredder sales and service business and the introduction of briquetters, pellet mills and complete pelletizing systems to their product offerings in 2010.

Vecoplan shredders are used in industrial scale recycling, while their briquetting and pelletizing systems are used in the production of alternative fuels. “In order to meet the demands of sales and production, we’ve tripled our staff in the last six years. So we’re delighted to move into this new space and are excited to be a part of the growing recycling and alternative energy markets in North America,” states Mr. Miller.

In addition to 2,000 sq. ft. of office space, the new facility houses a 10,180 sq. ft. machine rebuild center and a 6,000 sq. ft. test lab/show room space, where customers can send their material to be shredded, briquetted or pelletized. “Customers are always welcome to visit and see their material being processed from start to finish,” adds Miller.

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Security Shredding & Storage News. March / April 2012 15

Product/Equipment Profiles

Alpine Introduces Two New Shred Trucks

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lpine Shredders Limited of Kitchener, Ontario has released two new secure shred trucks. The first of which is the V19 model, incorporating a smaller yet powerful 2013 International Terra Star 19,500 GVWR chassis with a robust 300 horsepower and Allison transmission boasting throughput of 3,750 lbs an hour with 6,000 lbs payload. Introductory price for this new model is set at $149,995 USD. But the real highlight is the new 720 Dual Shred, which is virtually two trucks in one. Built on a Peterbilt 337 chassis, with either 54,000 or 33,000 GVWR, this is the ultimate in versatility. Under normal commercial shredding applications throughput exceeds 8,000 lbs per hour and at a flip of a switch change to high security shredding with controllable particle size. According to a recent RCMP shred size classification evaluation, this model has the option to produce one of the smallest shred sizes they have ever tested on mobile applications and at the same time, one of the quickest screen changes.

Lock America Padlock Line Adds Common Key Codes

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any document destruction companies use padlocks with the common “523,” “743,” or “797” key codes to secure their bins and cabinets, and until recently they have been limited in their choice of suppliers. Now Lock America International, with thirty years in lock security, can provide these and a number of other common codes in laminated steel and brass padlocks with hardened steel shackles. With factory direct pricing that eliminates distributor mark-up, Lock America provides a secure and reliable source for these popular lock styles.

For operators with higher security parameters, Lock America also manufactures a full range of standard and custom padlocks and cam locks with tubular and high security keys registered to each customer. For over thirty years, Lock America International has developed, manufactured and marketed high security locks and security hardware. In 2008, Lock America entered the data destruction industry, bringing the same commitment to cost-effective locks and key control that has enabled it to thrive in highly competitive markets that demand high security.

For more information contact an Alpine Shredders representative at 866-246-5634 or visit www.alpineshredders.com.

For additional information, call 800-422-2866 or 951-277-5180, email frank@laigroup.com or visit www.laigroup.com.

Blegalbloss Introduces Ergonomic, Secure File Box

AXO Shredders Opens New Philadelphia Facility

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legalbloss L.L.C. has launched a line of office products that includes the first major improvement to the ubiquitous records-storage box in a century.

Blegalbloss has nine patents pending and has formulated a manufacturing partnership with Pratt Industries.

The Blegalbloss system of corrugated, 100% recyclable containers brings ergonomics, safety, efficiency and security to records storage products at a very equitable price. The Levo 2 corrugated file box has a stacking strength of 796 lbs. and through-the-box handles for increased durability. Ergonomic patent-pending grips are easier to hold and keep the box close to the body, reducing bent-forward posture and associated worker injury.

Levo2 is just one product in a Blegalbloss line of the first truly secure archival boxes. The patent-pending, tamper-proof body and lid prevent intrusion.

Accessories include the Big Roo, a portable insert that can replace hanging metal files and folders while giving users a new level of organizing flexibility.

For more information call 888-848-4576, email info@blegalbloss.com or visit www.blegalbloss.com.

Poly-Trux® 54P-40 Corrals Heavy Loads in Stout, Stocky Design

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he Poly-Trux 54P-40 utility truck from material handling product manufacturer Meese Orbitron Dunne Co., Ashtabula, Ohio spans six feet in length in a low profile design that tops just 2-1/2 feet in height for easy loading and unloading of bulky, heavy items without raising them over a high rim. Ideal for managing recycling materials, electronics waste and other products, the durable 54P-40 features a proprietary rib design with steel reinforcing bars bracing the rugged plastic cart for extra load bearing support.

Further supported by high-strength corners that maintain rigidity, the versatile bulk truck handles payloads up to 1,200 lbs.

The sturdy recycle cart is rotationally molded in a single piece of polyethylene for weather, chemical and impact resistance and set on a heavy-duty, powder coated steel base atop six industrial-strength casters. The MOD 54P-40 utility truck stacks and nests for efficient transport and storage and is available in a choice of 17 standard colors plus custom colors in quantity. Tow hitches, forklift safety tubes and security covers are among the available options. ®

For more information, contact David McHugh at 800-829-4535, dmchugh@modroto.com or visit www.recycleosaurus.com.

16 Security Shredding & Storage News. March / April 2012

ew Zealandbased AXO Shredders Ltd has opened a U.S. manufacturing, sales and service facility in Philadelphia. AXO’s core philosophy is to offer a standard product range of equipment and focus on quality, reliability, ease of maintenance and a long service life.

The new USA range of Shredding Trucks have been specifically designed for the North American market and will feature the new FATSO shredding module along with a streamlined truck body unlike any other shredding truck on the market. Increased throughput, along with lower operating & maintenance costs, are just a few of the benefits the FATSO shredder offers. The first products to be manufactured at the facility will be the MST-6 (33,000 lbs. GVW) and the MST-5 (25,550 lbs. GVW Non CDL) Shredding Trucks both using Hino Chassis.

AXO’s range of Industrial Plant Based Shredders, Conveyors and Shredding Plants will also be part of the USA product line up.

For more information call 484-953-3580 or visit www.axo.cc.

Shredfast Introduces STR400

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hredfast Inc. has created another breakthrough in Mobile shredding technology, the allnew STR400 series.

We took to the streets and listened to our customers who requested a smaller shred size, while wishing to maintain high throughput and needed DOD capability. Shredfast heard you loud and clear, so we went to the drawing board and created a shredder to meet your needs. The STR400 provides one of the smallest shred sizes in the industry, without use of a screen or multiple shafts. In less than ten minutes a screen can be added to produce DOD size shred particles. The STR400 also has one of the highest throughputs of any small shred machine on the market.

Our revolutionary shredder has no rivals in its simplicity and design. Shredfast, Inc. continues to better itself when it comes to innovation in the shredding industry.

If you need a small partial size, you need a Shredfast STR400.

For more information contact Shredfast at 800-299-8437 or visit www.shredfast.com.

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Security Shredding & Storage News. March / April 2012 17

In the News Colorado Considers E-Waste Recycling Law

Reach More of Your Market ...

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enver—Colorado lawmakers have introduced a measure to ban certain electronic products from landfills and instead promote e-waste recycling. Democratic Sen. Gail Schwartz co-sponsored the bill, which also calls for state agencies to use a certified recycler for electronic devices by July 1, 2013.

The effort was supported by representatives from the recycling industry, who brought containers of old faxes, printers, computers and televisions to the state Capitol to promote the bill. It passed the Senate and will be debated in the House in the near future. Republican Rep. Don Coram, who is sponsoring the bill in the House, is a rancher and miner who compared electronic recycling to mining. “I just see this as another form of mining,” he said. Colorado is a state with a strong history of mining gold and copper.

Supporters champion the bill by saying that it will create jobs and enable the materials now going to landfills, such as gold, copper and aluminum, to be used in manufacturing. There are environmental concerns that toxic metals from electronics can end up in groundwater. Some 17 other states have passed laws similar to what Colorado is considering.

Between 40,000 and 161,000 tons of used electronics are thrown away each year, and an average of 8,000 tons are recycled, according to the Colorado Conservation Voters.

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ISRI Blogs About E-Recycling

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he Institute of Scrap Recycling Industries now offers a new source for information about the electronics recycling industry domestically and internationally, in its Escrapbeat blog, to be found at www.eScrapBeat. com. The website publishes articles by industry experts for consumers and industry insiders and will be updated several times a week.

The electronic scrap recycling industry is a fast growing one, with estimated revenue of more than $5.2 billion in the U.S. and employing more than 30,000 full-time employees. It processed over 3.5 million tons of used electronics in 2010, but many are still unfamiliar with the whys and wherefores of the industry, which creates jobs, protects the environment, and contributes to the U.S. and global economies.

ISRI hopes to create a clearinghouse where consumers, industry leaders and journalists, can discuss what is happening in the industry, including innovations and technologies that are driving the industry, successes of responsible electronics recyclers across the globe, ISRI’s Design for Recycling program, third-party certifications, landfill bans and their impact on end-of-life electronics, and the economics of e-scrap recycling.

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18 Security Shredding & Storage News. March / April 2012

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THE RIGHT TRUCK FOR THE RIGHT JOB WITH NO COMPROMISE The Latest Model in the Alpine V Series Lineup

V19

The new V19 from Alpine Shredders features simple, solid and reliable components - including our industry leading Solid Cutter Shaft, enough throughput to handle your client's needs and a generous 5,000 lb payload.

Combine that with a chassis boasting a 300 HP diesel engine, an Allison Rugged Duty Series automatic transmission and enough torque to get you around those busy urban centers, and you have an affordable, reliable urban workhorse that can put in a full days work.

Incredible Value in an Affordable Package

SPECIAL INTRODUCTORY PRICE: $149,995*

LPINE SHREDDERS

Scan for more info on the V Series V19

1-866-246-5634 www.AlpineShredders.com

SIMPLE SOLID RELIABLE

* Price in US Dollars. Contact Us for More Details.

Info Request #101

Security Shredding & Storage News. March / April 2012 19

Predator G3 Mobile Shredding Truck www.UltraShred.com

• Secure Document Destruction @ 7,000 lbs/hr • Shred screens down to 3/8” • Lifts any bin up to 98 gallons • Ease of Operation • Legendary Support

www.UltraShred.com

Call for a quote or more information

877-468-5872

Info@UltraShred.com

www.ultrashred.com UltraShred.com Info Request #113