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So I’ve tried to swing the same deal for over 5 weeks now. At first it was simple, an individual wanted to sell me some scrap metal. Then he went on holiday for one week. Upon his return my buyer for his material went on holiday for one week. Upon my buyers return I went to the cottage for one week. Now I’m back and my buyer decided to take a second holiday for two weeks.

So here I am, no deal to be had. My customer thinks I’m defective and my buyer thinks I’m a hassle. The sad part of this is that this is the proverbial cherry on the ice cream sundae of scheduling hell that has been my month. The good news is that this seems to be the industry standard across the board right now.

So on a good note, relax and get ready for September. The metal will pour out generously and the prices will… Wait, I’ll go research and get back to you.

[10 Minutes later]

Okay, so the August sadness seems to be a global issue.  Copper, aluminum, and pretty much everything except gold is on the slow bus to nowhere, thanks to American debt (high five Obama). So let me get this straight, to get out of debt you want to raise the debt ceiling in some sort of last ditch effort to throw everything into overdrive? For the record: You can’t dig yourself out of hole. But no worries, at this point America will have to pop the nails out of their casket first.

So yes, we will be here in September, and if history says anything about the scrap industry you can expect it to be a busy fall for demolition and prospector business.

We’ll see you back in the pool come fall. GreenGo will be the one treading water in the deep end.

I’ve been asked several times this week by a few processors (in response to my last posting here) what I would do with the OES program. In response, this: 

Micromanagement is a sickness in broad spectrum management strategies. It attaches itself like a parasite to healthy processes and goes along for the ride, claiming to be the engine of it’s host. Parasites must be stripped away to gain efficiency. OES in essence is a healthy process, with the right goals in mind. They want to establish a functioning system that incentivises organization to properly recycle electronics. The issue with the OES is that it was actually OVER strategized, paralysis via perfection. Instead of taking a simple pointed approach the OES launched a multi-vector assault on the province all at once. They forgot the age old adage of “do one thing, and do it well”. Instead they opted for the all in one slicer, dicer, blender, vacuum, toaster combo that sells well but breaks when you try and make your first smoothie – they tried to do it all, all at once.

I’ll start by asking, “What is a processor?” and answer by saying that in Ontario there are two (2) types. The actual processors, and the dismantlers. Dismantlers are organizations that implement hand tools and de-manufacturing as their main source of process. Dismantlers also outline the serious flaws in the OES system. Although they cannot provide large volume processing services, they do yield better recycling rates, simply because everything is literally picked apart by the ultimate machine, people. So this automatically qualifies dismantlers for the premium rates because their recovery ratios are so high. The issue is that they are being rewarded for recycling practices that cannot accommodate large volumes, and they usually don’t progress or invest in new technology. 

Under the current OES regime you can become a processor if you own a screwdriver, hammer, have the proper insurances, C of A, and a couple approved down-streams. You’ll have somewhere in the high 90% recycling ratios and probably be the most efficient recycling company ever to live, however your process volumes may be slightly stiff.

Then on the other side of the spectrum you have companies that have invested literally millions upon millions, and spent many lifetimes of people hours developing new and creative ways to get machines to process our waste. This approach is constantly developing, and has the capacity that we require.

Now logically, how are these two types of processors being grouped together? How does this help our industry progress?That being said, here’s my plan:

(Please note that I’m shooting myself squarely in the foot with this next bit.)

Step 1: Redefine the Processor

Processors should ONLY be companies that have invested solely in high volume technology based processing. Not only is this the only approach that can address current needs for recycling, this is the only approach for a sustainable system. We require new recycling technologies to keep up with the ever increasing volumes being produced, we also need these companies to continue developing their processes. In my opinion there are only 4, maybe 5 that should be Processors in Ontario.

Step 2: Scale back OES – Focus on Processors

After the main Processors are identified the OES should scale all the operations back and basically become a processor support group. Literally have the whole program focus on the designated processors, working with them on a one on one basis, incentivizing them as required, and ensuring that all the OES standards are maintained. In a perfect world the OES could have one full time representative dedicated to each Processor, assisting them as required.

This would eliminate any paranoia, most communication problems, and bolster the Processor to Province relationship.Then the OES wouldn’t have a need for marketing, training, stewardship groups, trannsporters, re-packers, etc., or anything else that didn’t involve actually recycling e-waste. And they wouldn’t have to babysit the collectors and others fighting among themselves or complaining about the program. These cutbacks would shave literal Millions that could be focused on developing their hand picked processors, increasing incentives and adding perks like research and development budgets and financing options for new  recycling technology.

If the Processors are well paid and taken care of, the industry will follow.

Step 3: ..and Hell followed with them…

Let the chips fly, lay out your cards, crumble the cookie, and fasten your seat belts. As soon as the OES removes itself from the street level market and Processors have more buying power the e-waste will flow like wine at a Roman orgy. The original champions of recycling will reinstate themselves as the dogs of war as e-waste in Ontario takes its true commodity form.

Suddenly, with less effort the OES will meet their volume goals, and any Processor with any political weight will be satisfied as they’re tended to like a hedonistic Greek god, “More grapes! Less fanning!”

And in their wake dismantlers will be pruned. At first they will be dismayed to say the least, but after they see the advantages of the new set-up it will be a non issue. And who are they going to complain to? The OES only deals with designated Processors. They will be forced to survive or die, much the same as everyone else. If they are a true business, not only based on OES incentive, they will be fine. If not they where never meant to be.

The OES collectors will fade as former collectors become accounts of scrap dealers. The e-waste will still be moved, but much quicker with net zero day pay terms (also known as cash).

And finally, scrap yards will become the accounts of Processors who fight among themselves for high volume clients. That’s right folks; we’ll be right back to ruthless Capitalism. It will be a refreshing change from the lack-lustre feeding trough of the OES collection program. Heck, it may even be fun.

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In short, I think the OES should focus on Processors only, making them as comfortable as possible and rewarding them for continuing development. Everything else will fall into place on its own. Let the bureaucracies deal with the bureaucratic, and let the dogs of war run.

There is a lot to be said for electronics recycling in Ontario. There are those of us who started before OES, and the lion’s share that came into action after the fact. Regardless, everyone who is actively involved has seen several dozen changes, revisions, and unfortunate failures of our provincial program. For those of us that dislike the OES operations this is a boon, but for most of us the failure or cancellation of the OES program means that there will be blood in the water.

I read an excerpt ( http://www.ottawacitizen.com/mobile/story.html?id=5055748 ) the other day that heavily criticized the OES recycling initiatives. There are several Ottawa region politicians criticizing a program they obviously know nothing about. They refer to the provincial program as a “sneaky tax grab”, a definition that outlines their ignorance.

For all the heavily taxed Ontarians that have a sincere issue with the current program please read on; the current program contains Stewards, who are resellers of technology. These Stewards are required to tag an eco-fee on all new items sold. This value may be anywhere from $5 and up per item. These fees go into a proverbial pool that funds the provincial recycling program.

A comment was made by a Mr. Denley (click the link above) stating: “…there are a number of organizations that recycle used computers and televisions and there is no need for a government bureaucracy to do similar work.”  Unfortunately Mr. Denley we need ‘incentives’, which could also be referred to as recycling subsidies. In approximately 90% of consumer electronics the intrinsic recoverable commodity value does not cover the recycling process. Meaning simply that the recovery rates on consumer electronics are simply not worth recycling without an incentive (or subsidy). This does not mean that our industry is a lame duck, as the alternatives speak for themselves.

But, that doesn’t derail the issue: the general failure of the OES program. There are many ways to go with this, but in general it is my opinion that a certain amount of grace is required. The OES is responsible for implementing a province wide program for a new waste stream. This includes literally hundreds of collection sites, thousands of clients, and the integration of an entire industry that is hungry to get involved. In my opinion the only real downfall of the OES was their failure to hire anyone from the industry they serve. I know personally of several applicants to the program that would have been of immense value. Time and time again the OES show they have great administrative strengths, but no internal knowledge. The car is clean, but the engine is running like a 1970’s russian import.

Let’s go back to our options, and the government intent:

Option 1: Cancel the program, use the $20 Million in excess funds to clean up all existing program materials, and then move onto nothing.

Result: Electronic waste goes back into the landfills, exporting starts en masse, and the old school scrap industry kicks back into action doing what they do best: making money at any cost.

Sounds good? Consider that on the low side Canadians contribute 6 Lbs. of e-waste per person annually. Let’s say on an extremely unrealistically conservative basis that only 50% will be land filled. That’s still 93 MILLION pounds of heavy metals and inorganic laden e-waste hitting our landfills annually. I kid you not, our children’s children will invent time travel if only to come back here and kick our asses.

Option 2: Municipalities deal with e-waste locally.

Result: For those of you pissed off about eco-fees, you should worry more about this option. Instead of taxing the individuals who purchase new items, Municipalities will tax everyone. This means that the technologically conservative individuals who are fine with their wood panelled CRT televisions will be paying for the recycling of the new fangled thing-a-ma-bobbers being toted by all those young punks.

Also, this will mean that e-waste incentive programs will fluctuate from township to township. So if one offers more than another there will be an imbalance, and due to a potential lack of geography separating these townships the one offering the most will get the most, draining the local funds dedicated to said programs.

Option 3: OES Revamp. Review the foundation of the existing program and push for a new approach, while involving industry leaders and individuals with actual electronic recycling experience. Maintain the existing plans until new ones are formed, using the excess funds to bolster the revised approach. Administrators and bureaucrats should be in support of this program, not leading it into the dark, unless of course you like the idea of the ships accountant navigating unknown seas.

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We need to keep the provincial stance on our programs, and we need to continue to work with the existing infrastructure. The OES is broken, but it exists, which is better than nothing. Keep in mind that hundreds are now employed as a result of this program and the taxation is going in the right direction, namely on the people who choose to purchase new materials. I agree there has to be revisions, but to throw this program out would be complete lunacy. Use the infrastructure, but change the mode.

I honestly think that the OES has done a good job, all things considered. But now that we’re on the other side of the first couple years it’s time to learn from our mistakes and take a new approach, before some politician uses the OES as a political spring board “Freeing the people from the tyranny of electronics recycling!” Yes they will cheer when they find out that they’ll save $20 on their new flat screen, and yes our time travelling great-grandchildren will wreak bloody vengeance on us for polluting their water tables beyond repair.