Page 61 from: March 2013
61March 2013
In November 2012, Upstate increased its across-the-scale buying
price by US$ 37 a tonne.
C o m p a n y p r o f i l e
more fun to go after the biggest guy in the room.’
So how big does Weitsman want to be? ‘I want
to keep expanding and I think we can, doing
what we’re doing,’ he responds. ‘Of course, we
can only do it if we’re making money; 2012 was
a very profitable year and I expect a 29% rev-
enue growth in 2013. Since we’re not a public
company, we don’t have to pay dividends to
shareholders. I just have to treat my employees
well, keep some to live on, and invest the rest
back into the company. I’m looking to have
long-term success here; I need to reinvest the
money to achieve that success. To protect our-
selves, we have to grow and build feeder yards
that surround our shredder like a moat. If we
can work on, say, 9% net, there’s a lot of free
cash-flow that we can reinvest in acquisitions
and equipment. So as long as I stay profitable,
I will continue to acquire feeder yards. If I can’t
throw off cash, the acquisitions will stop.’
When asked if he would ever have Upstate
become a public company, Weitsman doesn’t
hesitate. ‘No, never.’ Would he ever sell? ‘Never,’
he says emphatically. ‘I will never sell. I’m not
interested in selling. We’ve been approached by
Nucor, Sims, Schnitzer and Metalico, and my
answer is always the same – no.’
Weitsman says his greatest problem at the
moment is staffing. ‘I would open 100 yards if
I could find the right people,’ he says.
He is also concerned about laws such as tag-and-
hold and their impact on the ability of scrap
processors to do business. ‘Environmentally
we’re at the top of our game,’ he says confident-
ly. ‘I’ve poured a ton of money into our yards
for storm water treatment plants, detention
ponds and fully-concreted facilities, and I think
it will pay off business-wise. The Owego shred-
der plant has a storm sewer system that pipes
run off to an on-site water treatment plant.
Facebook fan
Upstate has a comprehensive website (www.
upstateshredding.com) which, Weitsman says,
is continually being updated and improved. He
is also a big fan of Facebook and sees it as an
important part of his marketing strategy. ‘A lot
of my customers are on my personal Facebook
page and I hear back from them all of the time,’
he says. ‘It gives a face to the name and people
can see your story and know what you’re doing.
I don’t just print the good stuff, I print my life.
It’s like a diary so people will know if I’m having
a good day at work or a bad day at work.
Recently, my posting on Facebook let Sims,
Schnitzer and Metalico know that our team
would be coming to New Jersey this year to do
battle on their home turf.’
Weitsman says: ‘I wasn’t born in this business.
I had a totally different career and a long learn-
ing curve to get to this point in the scrap indus-
try. What I’ve found is that I really love this
business – I love doing this. I’m not a really
smart guy, but I’ve been able to surround
myself with some amazing people. I just want
to die having been able to do one thing really
well, and they’re helping me do this really well.’
And he adds with a note of satisfaction in his
voice: ‘I think everything is going in just the
direction I’ve always dreamed of.’
‘Our suppliers are
happy, but my
competitors
don’t love me.’
In December last year, Upstate signed a 15-year lease with options
for two five-year extensions on an 7-hectare site at the Port of Alba-
ny. The shipping centre will handle bulk and container shipments
served by truck and rail lines from Upstate feeder yards.
Upstate has invested heavily in storm water treatment plants, deten-
tion ponds and fully-concreted facilities.
The Upstate Shredding/Ben Weitsman & Son team at the company’s headquarters in Owego, New York.
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