Tricky Trio

The cost of a baler—the price paid to the manufacturer or dealer—is readily apparent to a recycler shopping for equipment. But at least as critical to ongoing operating profitability is knowing how much it will cost to run that baler for each ton of material processed.

Predicting operating costs can require some hard work and some second opinions, but both recyclers and equipment manufacturers seem to agree that misunderstanding or underestimating these costs is very undesirable.

A SPARK OF ENERGY. Controlling energy costs by using high-efficiency motors is a recommendation that comes from Michael Stenson, international sales manager for Waste Processing Equipment Inc., Rainsville, Ala., makers of Max-Pak balers. "Soft starts prevent spiking and overloads," he says. Sizing the baler input hopper and cycle time for the expected load and growth can reduce energy costs.

"The best way to control both labor and energy costs is to replace old balers with new balers designed with highly efficient electric motors and new high-pressure hydraulics," says Richard Harris, managing director for Sierra International Machinery’s Recycling and Solid Waste Division, based in Keller, Texas. He says a new baler will pay for itself with these savings alone.

"Money spent every month, thought to be the cost of doing business, can be saved and a portion of the savings used to buy new equipment," he says.

Sidney Wildes, president of IPS Balers Inc., Baxley, Ga., agrees with this philosophy. "All buyers of baling equipment should insist on high-energy, efficient motors and associated starting devices, which start the motors slowly without the normal power surge," he says. He also recommends equipment that minimizes shearing of material, minimizing knife jams, and making sure that a maximum amount of material enters the bale chamber prior to each stroke to minimize the number of strokes per bale to lower energy costs per ton of material.

Saving on human energy (labor costs) can also play a role. "Labor costs can be minimized with the use of pit conveyors and pre-sorting of material as well as [by] utilizing a baler which operates automatically," Wildes says. "Proper material flow through the plant is the single most important part of reducing the labor cost in a plant while increasing efficiency."

In addition, Joe Szany, director of international and Nexgen Baling Equipment sales at Marathon Equipment, Vernon, Ala., says good employees and a good management style can have a huge effect on the bottom line. In his 40 years in the business, he has seen many plants with identical equipment, but one moves more bales per day than the other. The reason, Szany says, is motivated and trained workers and a management style conducive to efficiency.

WIRE ME SOME MONEY. Wire cost in a baling operation is significant. High-volume plants spend a large portion of their baling cost on wire.

Next to procurement of materials and shipping, wire is the largest cost in a paper baling operation, Szany says. That is followed by labor and energy, but they are well behind. Save 20 percent on energy and cut costs a dime per ton, Szany figures. Save 20 percent on wire and cut 50 cents per ton.

"It costs $2.50 to $4 per ton to tie bales. If you do 100 tons per day, it costs $300 for wire. That’s $750,000 over the 10-year life of a machine," Szany says. "Save a dollar per ton on wire, and the cost of the machine is hardly relevant," he adds.

Wire consumption is a major cost center for all baling plants, Wildes says. "The way to minimize your wire costs is to purchase a baler that will produce high-density bales. The ratio of wire costs per ton should be as low as possible. "Scheduled maintenance of the tying device will help minimize wire waste, which also adds to the wire costs," he adds.

"Making heavy bales reduces the cost per ton for wire usage," agrees Harris. Bales that weigh 2,100 to 2,200 pounds each for OCC will save more than 20 percent compared to bales weighing 1,500 to 1,600 pounds each. "All recyclers would love to reduce their annual wire bill by over 20 percent," he says.

Macpresse offers balers that can use either standard steel wire or the new plastic wire used in Europe. Plastic wire has the potential to make wire savings even greater, Harris says.

In the United States, plastic has not caught on. "Plastic [wire] is a no-no," Tom Yanko, president of Associated Paper Stock Inc., North Lima, Ohio, says. "Mills want wire." He even tried steel banding, and that did not fly.

"We’re stuck with annealed wire forever," he figures. "It works and takes a lot of abuse."

When it comes to wire, some advise not fretting the small stuff. "Wire, like equipment costs, energy cost, labor cost is a part of the cost of baling. Any savings affect the bottom line," says Stenson. However, he adds that wrestling over 18 inches of wire cost wasted per bale versus many other measurable cost factors can sometimes result in a witch hunt.

SMOOTH RUNNING. All plants need a checklist of routine maintenance items they inspect every day, every week and once a month to ensure a good uptime percentage.

Szany says maintenance, behind wire, is the No. 2 operational cost that a recycler can control. "It all depends on how well the guy maintains his equipment," he adds.

Downtime costs affect efficiency as much as any other cost, Wildes points out. First, operators should follow the suggested maintenance schedule and spare parts inventory from the manufacturer of the equipment. Secondly, the operator should inquire about any scheduled maintenance programs the manufacturer recommends and contract with the manufacturer to have these services performed by an authorized service provider.

"These two steps could prevent the majority of the small issues that cause the most downtime for processing plants and ensure your equipment is operating to maximum performance levels," Szany says. "Maintenance is the life of the equipment, especially on the hydraulics end of the baler; oil cleanliness is critical for the life and proper operation of the pumps, cylinders and valves on any hydraulically operated system."

Stenson says, "Lube and oil along with filters have traditionally been seriously neglected in most equipment related to a paper recycling facility."

Wildes also recommends regular oil samples after the recommended hours of operation to check the cleanliness level of the oil, cleaning the oil if necessary. Regular replacement of oil and air filters with OEM replacement parts is a smart practice for every plant,
Wildes adds.

Wear components, such as conveyor belts, baler platen wear strips and gib bars and fork truck and bale clamp lubrication are common points of long-term shutdown because of the lack of attention they generally receive, he adds.

"It doesn’t matter what type of equipment used, good preventive maintenance will save time, money and make a safer plant. I think it is a necessity," says Harris.