Page 56 from: March 2012
56 March 2012
Scrap –
the brightest star
in the Eriez
sales firmament
For the world in general, the last two years have been characterised
by economic problems and market volatility. But this is starkly
contrasted by experience at Eriez Magnetics where sales of equipment
into the recycling industry, for example, have sky-rocketed in many of
its key markets. Indeed, the company has been adding manufacturing
floor space in order to keep pace with customer demand for its
existing – and emerging – products.
Eriez is experiencing phenomenal growth. With sales in the hundreds of millions of US
dollars, 20% of which are in the scrap industry,
the company has been internationally oriented
since its founding 70 years ago in Erie, Pennsyl-
vania, USA. The company has product lines in
12 industries and grew more than 40% in 2011.
Sales of scrap-related products are ‘the stars of
our sales volume’, according to Tim Shuttleworth,
the company’s President and CEO. ‘Over the two-
year period of 2010 and 2011, our UK volume
grew 90%-plus – it nearly doubled – and the USA
grew by 80%-plus. These are our two largest mar-
kets for scrap products.’ He estimates that sales
growth in Japan and China is similar or better,
and concludes: ‘We are safely doubling our global
scrap recycling sales every two to three years.’
Some 60% of Eriez’s scrap-related sales are in
the USA; for the company as a whole, it is just
the opposite – 40% USA and 60% internation-
al. ‘We have a uniform outlook,’ says Mr Shut-
tleworth. ‘The world’s our market and we just
attack it all.’ Mining and metals is the largest
market segment accounting for 30-40% of the
company’s total sales.
Strategy to dominate
Eriez’s downstream ferrous systems for shred-
ders are the most popular products in the scrap
industry today, according to Mr Shuttleworth.
‘Right now, I think our ferrous separation tech-
nology is the best on the market and is getting
the best sales traction,’ he says.
‘On the non-ferrous side, we’re selling eddy
currents quite well and we have a strategy to
dominate that market – and in a few years, I
think we will.’
Mr Shuttleworth says the company’s growth in
recycling is due in part to ‘having a lot of new
products, which allows Eriez to sell more’. He
cites the Shred1Ballistic Separator and says its
sales have taken off. ‘It has had the fastest prod-
uct acceptance by the marketplace that we’ve
seen in 10 years,’ he exclaims. ‘It was introduced
at the ISRI (US Institute of Scrap Recycling
Industries) 2011 Convention and nine units
have been sold – three are operating, more will
be commissioned in the spring and more are
in the manufacturing process.’
According to Mr Shuttleworth, ‘Shred1 uses
ballistics to separate ferrous from much of the
mixed metals and waste material in the post-
drum magnet flow and delivers three distinct
fractions: a premium, low-copper ferrous prod-
uct; a traditional No 2 shred; and a heavy/light/
waste mix.’ Eriez is now introducing its Clean-
Stream process (see sidebar), a technology that
incorporates the Shred1 Separator combined
with the PE-Rex drum magnet.
Adding more capacity
As a result of this growth, lead times became a
problem. Mr Shuttleworth notes: ‘We’ve been
growing so quickly, it’s been an effort to satisfy
customers.’ To meet the challenge of capacity,
Eriez added 50% more manufacturing floor
space around the world in 2011 and 100% more
capability at the company’s Erie headquarters.’
Mr Shuttleworth estimates that Eriez has 20 to
25% of the US scrap/recycling market, which
S U P P L I E R P R O F I L E By Jim Fowler
Tim Shuttleworth:
‘We’re dealing with a
lot of colourful people
in the scrap industry.’
Tim Shuttleworth, Eriez’ President
and CEO.
In late 2011, Darrell Milton was
named Marketing Manager
Metals Recycling.
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