Industry News

A survey conducted by Market-Tools Inc., Mill Valley, Calif., and Fellowes Inc. finds that more than three months after the latest provision of the Fair and Accurate Credit Transactions Act (FACTA) went into effect, small business owners are still unfamiliar with it and the significant impact it can have on their businesses.

The results from an online poll of more than 500 small businesses conducted in July finds that only 13.1 percent of respondents recognize FACTA when asked which acts or regulations they have heard of.

Of those respondents who recognize FACTA, 53 percent have little or no knowledge of the legislation’s general principles, and 64 percent have little or no knowledge of penalties for non-compliance, according to the survey. Of the respondents who recognize FACTA, 56.4 percent are unfamiliar with the types of documents that need to be destroyed, and 58.9 percent are unfamiliar with when the legislation went into effect.

Prior to FACTA’s implementation, more than one-third of small business owners surveyed who have heard of FACTA had never disposed of personal data. Of those who did dispose of personal information, about one-fourth threw the documents in the trash without destroying them, according to the survey. Now that FACTA is in effect, nearly 60 percent of respondents say they would shred documents.

While there is a disconnect between what FACTA is and how the provision will be enforced, 43.1 percent of survey respondents knowledgeable about FACTA say it would be helpful to have more information about the legislation and its standard of compliance, with 34.7 percent indicating that they would turn to the Internet for this information.

Among the same group, shredding is the most popular method of destruction at 58.5 percent, followed by burning at 11.1 percent, tearing up at 8.3 percent and pulverizing at 1.4 percent. While 8.3 percent of small businesses still throw away documents containing personal information, 11.1 percent dispose of these documents by "other" means.

"While shredders are an important part of properly destroying personal information to curb identity theft, we feel it is just as important to educate businesses on new legislation like FACTA," John Fellowes, shredding marketing manager for Fellowes Inc., says.

Fellowes is a manufacturer and marketer of business machines, records storage solutions and technology accessories headquartered in Itasca, Ill.

Nick Wildrick (left) and John Bauknight IV

Shred First LLC, based in Spartanburg, S.C., has announced its acquisition of Power Shred of Alabama. The financial terms of the deal were not disclosed.

The transaction expands Shred First’s service area to include Alabama and the Florida panhandle. Shred First currently serves South Carolina, North Carolina, Georgia, Texas and Northern California with two processing facilities in South Carolina and one each in Texas and California. The company also services national contracts through its extensive network of sub-contractors.

Nick Wildrick, Shred First CEO, says, "Power Shred is led by two excellent owners, Ron Lane and Stuart Arrington, who have led the company to its stellar growth. Upon closing, both will become shareholders in Shred First and will continue to manage Alabama."

Ron Lane, president of Power Shred, says the company is "enthusiastic" about the acquisition because of Shred First’s expertise and commitment to growth. "We anticipate immediate benefits for our customers as well as new opportunities for our associates," Lane says. "This is a great deal for us, and we are eager to continue our work in the industry by joining such a dynamic team as Shred First."

Shred First President John E. Bauknight IV says, "This transaction is our initial step in growing the company into the largest privately held document destruction company in the nation."

Information on Shred First is available at www.shredfirst.net.

Iron Mountain Acquires Pickfords

Iron Mountain Inc. has begun its expansion into the Pacific Rim by the signing of a definitive agreement to acquire the Australian and New Zealand operations of Pickfords Records Management (PRM), a subsidiary of SIRVA Inc., for about $87 million.

The deal is subject to closing conditions and regulatory approvals and should be complete by year-end.

PRM, based in Melbourne, Australia, serves more than 3,000 customers in various sectors including finance, healthcare and government. It has 30 facilities in Australia’s capital cities and in all the major business centers in New Zealand. The company’s portfolio of services includes records storage and management, secure shredding, imaging and business process outsourcing.

"Asia and the Pacific Rim are the most strategic areas of expansion remaining for Iron Mountain as we look to extend our geographic footprint to be everywhere our customers need us to be," Richard Reese, Iron Mountain’s chairman and CEO, says. "The acquisition of PRM provides us with an excellent entree into this region. Our enterprise customers who seek a consistent partner on a global basis need us in Australia and New Zealand, and the local markets are robust enough to support significant growth for years to come," he adds.

Reese says PRM "is a great operation with first-class employees and a superb customer base." He adds, "We look forward to joining with the PRM team to bring our full portfolio of information storage and protection services to these new markets."

Geis Added to Reclamere Staff

Troy Geis

Reclamere Inc., Tyrone, Pa., has hired Troy Geis as its general manager. His primary areas of focus will be improving operational efficiencies, maintaining the company’s safety record and training staff for a corporate expansion at the computer reclamation and data destruction company.

"Troy Geis has extensive experience in management, operations and leadership within the manufacturing environment," says Robert Dornich, president of Reclamere Inc. "Reclamere’s operational improvements will allow us to continue to grow as a national leader in IT asset management and certified data destruction," he adds.

"We are very excited about this opportunity to work with Troy and improve our business," Dornich says.

HP Survey Shows Executives Unaware of Particulars of Computer Disposal

HP, based in Palo Alto, Calif., has announced the results of a survey of 300 corporate management and IT executives at companies with 500 and more employees.

According to HP, the results reveal that much of corporate America "significantly underestimates the security, financial and environmental impact of technology equipment disposal."

Commissioned by HP Financial Services, the leasing and financial services subsidiary of HP, and conducted by research and consulting firm TNS, the survey shows that 70 percent of respondents underestimate the cost of disposing of PCs; that 66 percent of executives with purchasing authority are unaware of the financial implications of ignoring environmental regulations when disposing of IT equipment; and that the biggest concern regarding disposal of IT equipment is data security and privacy.

The survey underscores the need for companies to improve their approach to IT asset disposal, according to HP, or face the consequences, which could include fines, penalties and imprisonment.

Leasing is one way for companies to mitigate the various risks involved with acquiring IT assets because the lessor assumes the responsibility for proper disposal of equipment at the end of its useful life, according to HP. Leased equipment returned to HP Financial Services is disposed of in a safe, secure and environmentally friendly manner, the company says.

Leasing also protects customers against fines and consequences related to improper asset disposal and violation of data security, personal privacy and environmental regulations, HP adds.

More information on HP Financial Services offers, programs and solutions is available at www.hp.com/hpfinancialservices.