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starting a scrap yard

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  1. #1
    Kyleb0484 started this thread.
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    starting a scrap yard

    I have been kicking around opening a collection yard for the last several years. I am involved in other business ventures, but have always had an interest in the scrap metal industry. I am looking to see if any seasoned yard owner would be willing to chat about the business with me.



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    Are you looking to go into a niche market or a full blown yard? What part of the country are you in?

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    Kyleb0484 started this thread.
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    A full blown yard. I am in central Florida

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    What part of central florida.

    Space coast here.

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    Kyleb0484 started this thread.
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    West central Tampa bay area

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    1956's Avatar
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    Well I would have to say I would think about that twice before taking that leap,I sold my 50 percent owner ship in a yard three years ago,thank god I did my old partner is married to that yard now,the business has changed so much in the last couple of years,there are plenty of new regulations that you must subject your self to,the cost of setting up a new yard today is tremendous with all the new laws concerning regulated materials,just the computer system alone to be compliant is over 50 thousand just for starters,the margins are not all that great believe me,the best business in my opinion to open a cardboard paper recycling yard,no regulations not much compaction and the margins are better then metals,not to mention,you will not need to hire a private security company to watch the paper,cost scrap yards thousands a year in security,think paper it's the way to go,let me throw this out to you,,,where is the closest yard to recycle cardboard and office paper in your area??

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    I just started one 2 years ago, and yes, you will be totally married to it. It is a very narrow margin and a price drop leads to fantastic burns that will send your budget into panic mode. Yet..I like it. I make good money on motors and insulated wire, rarely purchase gas (junk cars), and I enjoy the strange stuff that comes in. Corrugated paper (there is no "cardboard" as I have been corrected) and maybe plastics are the wave of the future, just collect and ship. Every state has its own laws and requirements, Colorado was fairly easy, Florida is probably more complicated. The biggest trap is the "death spiral of growth", unless you have REALLY deep, pockets, specialize and stay small.

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