11 minute read
More than metal
BY JOHN STEARNS
Idaho company goes big on tire recycling
UNITED METALS RECYCLING is more than a scrap-metal recycler; it’s part of an extended family of nine companies largely focused on directing materials away from landfills and back into productive uses.
Think scrap metal like steel that’s melted and converted into building material, such as construction rebar, salvaged copper wire melted for new copper products or old tires converted into rubber gym mats. Scrap metals like steel, copper and aluminum are commodities with value that can be sold as ingredients for new products; whereas tires are a waste material without value until they’re reprocessed into ingredients for new products.
United Metals Recycling (and its affiliated companies) work in the middle: salvaging the material, preparing it for its new life, then sending it to manufacturers to make the end product.
Other affiliates of United Metals Recycling work on recycling’s periphery, including a trucking company to haul material and a marketing company to help other recycling-related companies promote their businesses. Material salvage and reuse, though, is where United Metals Recycling cut its teeth.
It’s no surprise then, that it’s taking a much bigger bite of tire recycling by substantially increasing capacity at its affiliated business, Tire Reclaim. That’s where Heritage Bank comes in: It financed the expansion.
“We should be able to consume most of the waste tires in the state,” said Brett Ekart, owner of Tire Reclaim and United Metals Recycling, who also owns or is a partner of the other affiliates.
Last fall, Tire Reclaim completed expansion of the tire-recycling plant and was beginning to boost production in November when this story was written. Tire Reclaim will have the capacity to shred, grind and recycle 4,000 to 5,000 tons of tires per month, Ekart said.
The plant, in Caldwell, just west of Boise, will separate metal belts from the rubber, send those to metals processors for new uses and transform the rubber into various sizes and grades with several applications. Those include athletic fields and tracks, mats for gym floors, molded products like parking stops or asphalt sealant that incorporates fine rubber particles.
Tire Reclaim was born out of a challenge, Ekart said.
“We were having a hard time finding places for tires that we were getting through the nature of our recycling process, trying to figure out a home for those tires, and we were like, ‘Why don’t we just try and solve this problem?’” Ekart said.
For Ekart—the third-generation leader of United Metals Recycling, which his grandfather started in 1972 as United Metal & Scrap Co. Inc.—the work he and his team of roughly 200 people do is rewarding.
“I feel like there’s a way to make money and also do the right thing,” Ekart said.
He wants that to resonate with his team, too, whose members he credits for their work and positive impact on the planet.
“If you can operate within an industry that’s doing something good at the same time, there’s like an added bonus,” he said. “We’re stewards of the environment. At the same time, we’re not subsidized by the government, we’re just people trying to do the right thing and build businesses out of doing the right thing.”
United Metals Recycling recycles more than 100 million pounds of material a year. That’s a lot of material steered away from landfills and redirected back into the manufacturing process. That number will increase by another 72 million pounds annually with the added tire-processing capabilities.
Recycling and sustainability comprise a big part of where Ekart sees the industry going.
“There’s more focus on a company’s ability to define their waste stream, define their material that is recyclable and keeping it out of landfills,” he said. “I think that’s why we’ve moved down the tire-recycling line; there’s a niche there that fits with our capabilities, it matched up with our interests and it’s a viable business opportunity if operated correctly.”
Heritage proved to be a good fit
Ekart liked what Heritage Bank brought to the table for the tire facility.
“My biggest thing is banking is relationship-driven,” he said, more than interest rates and money.
A bank’s willingness or ability to see a company’s vision and join the journey is important, according to Ekart.
“Obviously, the finances have to make sense…but we’re in a position today with doing business with Heritage because there’s a relationship there,” he said. “They came out, they looked at our facility, they met our management team, and they must have felt that there was an opportunity that we would be a good fit for their bank and a good opportunity for them—and we felt the same. So far, so good.”
A lot of relationship building and trust goes into choosing a bank, he added.
“When you’re putting in a capital-intense facility like we are, the size that we are, you have to be a good operator,” Ekart said.
But the bank plays a vital role, too.
“It’s like a good marriage—each side needs certain things for it to really be successful,” he said.
The relationship with Heritage started with Mike Trueba, head of Heritage’s new Boise commercial banking office and native Idahoan. Trueba had a relationship with United Metals Recycling through his previous bank. When he moved to Heritage late last year to open its Boise office, United Metals Recycling contacted him to discuss its tire plans and inquire about possible financing. A deal emerged.
Telling it like it is
The plain-spoken Ekart is quick to credit his team for the various businesses’ good work, saying his one superpower is “finding good humans.”
Some are former high school or college classmates, others he’s met through several Idaho and Oregon connections, some he even met through LinkedIn. Ekart played football for Eastern Oregon University in La Grande where he got his bachelor’s degree in business administration and management. He later earned his MBA through the University of Phoenix. His companies’ operations and people are spread among various cities in two states. United Metals Recycling has recycling facilities in Boise, Caldwell, Twin Falls, Heyburn and Payette in Idaho, plus Baker City and La Grande in Oregon.
Ekart shuns the spotlight, preferring the focus be on his team and the businesses they run. Those include:
• United Metals Recycling, whose work involves collecting and processing recyclable metals, which it then sells as recycled materials to manufacturers.
• United Hauling, which has a fleet of 40-plus trucks, 100-plus trailers and more than 3,500 drop boxes, roll-offs and bins it brings to companies to fill with recyclable materials. Those materials are then hauled to mills in Oregon, Washington, Montana and Utah. Trucks return to greater Boise with loads such as shingles, two-by-fours and rebar to help supply the regional construction industry.
• United Electronics Recycling, which offers electronic waste recycling and mobile onsite hard-drive shredding among its recycling services.
• Copper Reclaim, for copper collection and recycling.
• Converter Reclaim, for recycling minerals in catalytic converters while following strict national tracing, tracking and purchasing guidelines.
• Tire Reclaim, recycling tires for new uses.
• Recycled Media, a marketing company which helps other salvage and recycling companies market their services as well as produces podcasts for United Metals Recycling and its affiliated companies.
• TV (Treasure Valley) Pipe Supply, a steel and HDPE culvert distributor with locations in Idaho Falls, Twin Falls and Caldwell.
• United Storage, a self-storage company.
The businesses make money in different ways.
United Metals Recycling buys recyclable metal from manufacturers then prepares it for delivery and sale to mills that will buy it and melt it to create new products, including rebar, copper wire, aluminum sheets and more. United Metals Recycling also recycles old vehicles, either crushing them at its facilities or at salvage yards using mobile crushers. A salvage yard removes usable parts that it can sell, leaving the rest of the vehicle for United Metals Recycling, which gets vehicles “shredder ready,” as Ekart says. It then will haul those crushed vehicles to a secondary processer to shred the vehicles into fist-sized pieces and separate all the valuable commodities like steel, copper and aluminum. Items that aren’t recyclable, such as foam cushions or plastics, still go to landfills. Roughly two-thirds of a vehicle is typically recycled, Ekart said.
With Tire Reclaim, it’s paid to collect old tires from tire shops, for example. Tire retailers typically charge a disposal fee for tires they replace on vehicles, comprising part of the fee paid Tire Reclaim, which will make money downstream as it sells its ground rubber.
Building on a scrappy foundation
Ekart’s grandfather, Bert Ekart, started United Metal & Scrap with locations in Caldwell and Nampa, Idaho, and later launched United Hauling to ship scrap to plants and haul building materials back to the growing Boise area. His wife, Wilma, also worked in the business and the couple retired in 1997, selling it to their son and daughter-in-law, Rod and Debby Ekart, Brett’s parents.
That same year, the company teamed with Schnitzer Steel Industries in Portland to form a joint venture, today’s United Metals Recycling.
Rod and Debby were instrumental in the growth of the business after the joint venture with Schnitzer Steel. They grew the commercial business with drop boxes and bins, added a trucking brokerage and expanded the United Hauling fleet of trucks to service United Metals Recycling. They also added a facility in Mountain Home, Idaho, metal and auto recycling facilities throughout the state and a facility to process ferrous (those that contain iron) and nonferrous (no iron) metals.
Brett, after graduating college in 2004 and returning to the family business, began recruiting people his age to join the business. Teaming up with his parents, he was able to use this expanded capacity to add more recycling and TV Pipe facilities across Idaho and Oregon.
The company also went on to partner with B&K Auto Salvage, now B&K Auto Salvage & Recycling, in two auto salvage and recycling facilities in Baker City and La Grande. Additionally, it bought an auto salvage and recycler in Heyburn, Idaho.
Rod worked in operations and Debby was the chief financial officer until both retired in 2016. They sold the business to Brett. When his parents retired, United Metals Recycling bought out Schnitzer, returning the company to full family ownership, Ekart said. The company has continued to expand and seek opportunities.
One of Ekart’s latest ventures is partnering in Recycled Media, which produces several video podcasts about the recycling industry, “Talkin’ Tires,” “A Scrap Life,” “Recycled Idaho,” and “Betts on the Future” (named after Jennifer Betts, Recycled Media CEO and founder of Magnar Metals in California). They feature Ekart and colleagues talking about issues of the day with clients and suppliers, and they’re posted to the company’s website. The podcasts provide a way to discuss the industry, trends, what other companies are doing and keep United Metals Recycling and its affiliated businesses and brands in the public eye.
“You have to be your own kind of media company,” Ekart said. “If you’re trying to build something and trying to scale something, then the most important thing you can do is create awareness around your business, what you’re doing and the best way to do that is to tell your story.”
He started Recycled Media with Betts for the business opportunity to help other companies tell their story and brand themselves in addition to building awareness around his own brands and companies.
That awareness is brought home in the introduction to a “A Scrap Life.” Videos show Ekart’s companies in action, high-energy music in the background and words that embody their work: “Hustle. Sweat. Grit. No suits. No ties. Recycling before it was cool. It’s a way of life.”
Giving back in other ways
Ekart and his team contribute to the community beyond recycling.
They’re particularly fond of Camp River Run in Boise, which provides four-day camping experiences in Hidden Paradise, Idaho, for youth with serious medical issues that otherwise would prevent them from the experience. The camp, with trained medical personnel nearby if necessary, allows kids to enjoy the benefits of camping and nature. Ekart calls it one of the coolest causes he’s seen.
“It’s just stuff like that I get excited about,” he said.
Supporting breast cancer research is also important to the company, a passion fueled by Brett’s father, Rod, who continues his significant support.
Business managers, though, can contribute where they want, whether sponsoring a local rodeo, little league or golf tournament fundraiser.
“If there’s a cause that they feel is important to sponsor in their local community, we give them the bandwidth to do that,” he said.
