Colmar--Clean Image

Wayne Lanham

PUTTING ONE AND ONE TOGETHERWayne’s father Steve, who worked as a newspaper production manager, saw an opportunity in the scrap paper generated by his employer. Stricken by the entrepreneurial spirit, he called on Wayne, who had been working in ranching after graduating from Texas Tech with a degree in agriculture economics, to join him in the proposed paper recycling venture. The duo established RWL Recycling Inc. in September of 1987, and Steve still serves as operations director for the company.

While working to establish the name and reputation of his company, Wayne also began putting down roots in Abilene, marrying Terri in 1990. Terri, a graduate of Tarleton State University with a degree in computer sciences, immediately joined the family business, serving as the bookkeeper for RWL Recycling. It was not long after they settled in as man and wife that Wayne and Terri partnered on another venture.

In 1991, RWL Recycling’s accountant told the couple about Texas Hide and Metal Co., a scrap yard that was established in 1909. The company’s owner, also a client of the accounting firm, expressed an interest in exiting the business. Although Wayne and Terri had not articulated an interest in expanding their business prior to that time, the accountant approached the couple with the acquisition opportunity. After some deliberation, Wayne and Terri executed an asset purchase of Texas Hide and Metal in the summer of 1991, forming Texas Metals & Recycling Co.

Wayne says he is pleased with their decision to expand into the metals recycling industry because it gives them an opportunity to benefit from the stronger of the two markets. "When certain items in paper are hotter than certain items in metals, we are able to shift our focus to where the hot item is and hopefully capitalize on the markets more by doing that," he says.

While Wayne says that west Texas is not home to many paper recyclers, the competition is stiffer on the metals side of the business. Texas Metals differentiates itself from larger scrap dealers in the area by providing consummate customer service and a top-notch facility. "We have a competitor that is five or six times larger than us up the road," Wayne says. "What is going to make us different is our customer service and our facility."

Both Texas Metals and RWL Recycling are located along a Texas state highway on the same five-acre site. Wayne and Terri bought the site in 1995 and relocated the paper recycling operation there immediately. The metals operation moved there in 2002 and involved considerably more work, Wayne says.

ESTABLISHING A NEW IMAGE

"Relocating the scrap yard has been our biggest challenge," Wayne says. With only 90 days to relocate to the new yard, which was five miles away, the company sold as much material as it could in preparation for the move.

"It was close getting that done," he says of moving the established yard within the time frame provided. "Logistically, it had been a scrap yard since 1942. We tore it down 60 years to the month that it was built."

Wayne and Terri set up their new facility so that the buildings housing RWL Recycling and the nonferrous portion of Texas Metals are located on the perimeter of the site. The ferrous yard is at the back of the location, out of view from the public.

"We did that intentionally," he says of their decision to locate the ferrous operation away from public view. "We wanted to give a different perception of the industry," Wayne says. "Most scrap yards you go by, you see huge piles of material, and it is kind of an intimidating, daunting thing. I don’t want people to see that. I want them to see a nice facility."

And that’s exactly what they see at Texas Metals. Incoming traffic flows in one direction along wide, paved roads to allow easy and orderly movement through the yard. Wayne and his 10 employees also make an effort to keep piles to a minimum, quickly processing incoming scrap metals and sending them off to their consuming destinations. The company sells its ferrous scrap directly to three or four steel mills and its nonferrous material to brokers and large scrap dealers, though most of the red metals it handles stays within Texas, Wayne says.

Having the right processing equipment plays a vital role in Texas Metals’ success. "Every month we try to sell what we buy, in general. That way you don’t get caught with these wild swings."

Texas Metals processes 800 to 1,000 tons of material monthly primarily using its Colmar 6200-800 shear/baler and keeps material moving with two scrap handlers.

When the Lanhams bought the Texas Hide and Metal Co. in 1991, the newest piece of equipment was a ’74 pickup and the newest crane dated back to 1969, Wayne says. "We were 25 years behind in terms of equipment." They have slowly been upgrading and adding equipment throughout the years.

"It’s still a work in progress," Wayne says of Texas Metals. "We add a little at a time and go to the bank for financing. That allows us to keep operating capital around. I’d rather borrow money on equipment than on operating expenses."

GROWING A LEGACY