Volume 7, Issue 5
&
September / October 2010
Security Shredding Storage News
Official Publication of the Security Shredding & Paper Recovery Markets
Inside This Issue 4
Internal Compliance: Three Key Strategies to Improved Information Destruction
8
Chaotics: Managing Organizational Change and Stress in a Turbulent Environment
13 Congress Acts to Ban Export of E-Waste to Developing Countries
FOR SALE Sales of Businesses Face Quandary Over Status of Capital Gains Tax By P.J. Heller
14 Product / Equipment Profiles
Visit our website at www.sssnews.com
“. . . Nothing is certain but death and taxes.”
W
Cartoon by Frederic Serre
PRSRT STD U.S. Postage
PAID
Mentor, OH Permit No. 2
hile Benjamin Franklin’s words have rung true for more than 200 years, the conundrum facing the document destruction and records storage industries in 2010 is how much those taxes will be in coming years. Of particular concern to owners who may be contemplating selling their businesses is the hit they will take from the long-term capital gains tax, which, unless Congress acts before the end of the year, will increase to 20 percent from the current 15 percent rate. With the federal deficit at the end of the 2010 budget year at just under $1.3 trillion — down from the record $1.42 trillion one year earlier — and with healthcare reforms in 2014 kicking in, the uncertainty about how high the capital gains tax may eventually go is the great unknown. “Nobody knows where capital gains taxes are going to go on Jan. 1,” says Jim McGuire, president of Shotgun Capital Advisors, a merger and acquisitions advisory firm in Southlake, Texas. “It seems likely it will revert to 20 percent.” By the time healthcare reform takes full effect, the capital gains tax rate could be at 24 percent, he predicts. “We’re getting ourselves more and more in debt,” notes David Lane, president and chief executive officer of the investment banking firm Lane-Link Group in Rockwall, Texas. “Sooner or later somebody is going to have to pay for it. So even if capital gains rates don’t go up this year, they’re going to go up sooner or later.” What that means is that sellers of document destruction companies and records storage businesses will likely walk away with substantially less money if they sell in the future compared to what they would have realized by cementing a deal in 2010. The impact of a $5 million transaction
today versus a sale in 2011 (assuming the capital gains tax goes to 20 percent) on a seller’s bottom line is equivalent in value to a brand new Ferrari F430, McGuire notes. “Same deal. Same transaction size. And there’s a $250,000 uptick in tax liability on that $5 million transaction,” he says. “That’s significant.” “At the end of the day,” he adds, “it’s not what you get for your business. It’s what you put in your pocket that’s important.” McGuire and Lane early on have counseled their clients who may have been mulling the sale of their businesses to close the deal in 2010 to take advantage of the lower capital gains tax. McGuire’s Shotgun Capital fir m specializes in assisting business owners with the sale of their document destruction, records storage, specialty waste, or security related businesses. Lane’s Lane-Link Group is a full-service investment banking firm dealing with the document destruction and document storage industries; among its services is handling mergers, acquisitions, joint ventures, valuations, value creation, recapitalizations and refinancing. Both McGuire and Lane agree that buyers — businesses and private equity groups — are vying today to acquire document destruction and records storage companies but that prices are down significantly from the buying frenzy of a few years ago. The dramatic price decline is somewhat akin to what happened to the housing market when the housing bubble burst. Even so, Lane says private equity groups are competing to purchase businesses, which is helping to drive up prices, even though they are nowhere near what he describes as “the blip” of 24 or 30 months ago.
Continued on page 3
Smart and Reliable
Don’t Hand Out Your Confidentiality… l l
Cost Efficient
Low Maintenance l
Small Footprint
30 Years of Expertise In Daily Operation Worldwide Whether it’s hard drives, credit cards, paper documents or CDs and DVDs, the patented UNTHA four-shaft system can provide you with peace of mind UNTHA America, Inc.
10 Perry Way, Newburyport, MA 01950 Tel. 1-888-UNTHA-08 (868-4208) or (978) 465-0083 www.untha-america.com Info Request #130
2 Security Shredding & Storage News. September / October 2010
Security Shredding & Storage News
Sales of Businesses Face Quandary Over Status of Capital Gains Tax Continued from page 1
PUBLICATION STAFF Publisher / Editor Rick Downing
Contributing Editors / Writers Doug Balsley Jane Boucher P.J. Heller
Production / Layout Barb Fontanelle Christine Pavelka
Advertising Sales Rick Downing
Subscription / Circulation Donna Downing
Editorial, Circulation & Advertising Office 6075 Hopkins Road Mentor, OH 44060 Ph: 440-257-6453 Fax: 440-257-6459 Email: downassoc2@oh.rr.com www.sssnews.com For subscription information, please call 440-257-6453 Security Shredding & Storage News (ISSN #1549-8654) is published bimonthly by Downing & Associates. Reproductions or transmission of Security Shredding & Storage News, in whole or in part, without written permission of the publisher is prohibited. Annual subscription rate U.S. is $19.95. Outside of the U.S. add $10.00 ($29.95). Contact our main office, or mail-in the subscription form with payment. ©Copyright 2010 by Downing & Associates.
Sellers “have to get their expectations in line with reality and that is that 24 months ago there was a blip in the market and that blip probably isn’t coming back,” he says. “I think that type of pricing that was being paid for these businesses is gone and it will never come back. “The pricing that was 24 months ago was kind of a false sense of ‘this is what my business is worth,’” he adds. “It was only worth it at that time. It’s no longer worth that value in the marketplace.” “It’s a different world today,” McGuire agrees, predicting that even with all the buyers in the marketplace, prices are unlikely to rebound to the levels seen just a few years ago. The question that business owners have faced is whether it’s better to sell now — in effect take the money and run — or to continue trying to grow their businesses and then sell sometime down the road, even with a possible increase in the capital gains tax. McGuire notes that owners who accelerated the sale of their businesses to 2010 could walk away with the same amount of money after taxes as they would if they keep growing the business for the next three years and then face higher capital gains taxes. “An increase in capital gains taxes is certainly going to raise the hurdle where you’re going to have to grow faster and more efficiently to increase the value of your business on an after-tax basis,” McGuire explains. Much of the decision about selling hinges on the return that can be earned by investing the sale proceeds — as well as factoring a person’s tolerance for investment risk — versus the growth potential of the business. The value of a business with a 10 to 15 percent annual growth rate over the next three years, for example, could be negated by increases in capital gains taxes. “You have to look at your retirement plan or your exit strategy plan and say, ‘Am I better off with what I’m doing today and have dollars in the bank that may grow slowly or am I better off to have a business that’s driving cash flow,” Lane says. “If your business has expectations to grow 20 percent to 30 percent in the next two or three years, then obviously it’s something that you’d say you’d rather keep. If your business is just steadily growing at 2 or 3 or 4 percent a year, that’s the same you could get by putting money in safe haven investments . . . Ultimately it becomes what someone’s tolerance for risk is.” While it may be too late for sellers to take advantage of the historically low 2010 capital gains tax rate, Lane and McGuire note that corporates and private equity firms are both primed to buy. “With over 1,400 independently owned shredding companies in the U.S., the industry remains primed for acquisition activities of all shapes and sizes,” McGuire says. “Like mother nature to a species, acquisitions play an important role in protecting the health and viability of an industry. Removing excess or duplicative shredding capacity ensures that nobody starves. Costs are removed, and customers benefit in the long run.”
He adds that corporate players are “sitting on a significant amount of cash on their balance sheet” that can be used for acquisitions. Further fueling the acquisition fervor, he adds, is the fact that “organic growth” in the industry is more expensive and much harder to achieve than it was five years ago. “Many times acquisitions can be significantly less expensive than organic growth, without the wait,” McGuire says. “In some instances, acquired growth can be three times less expensive than organic growth. That’s why the big companies keep acquiring. “Money is cheap today. Debt is cheap. Large corporates have certainly woken up again and increased their appetites for acquisitions,” he says. “There are several large corporate buyers that are actively pursuing quality targets.” He also suggests that now is an ideal time for larger independent companies to “become courageous” and start acquiring local competitors in adjacent markets. Such a move will allow them to become regional players, a category which he says has been “extinct” due to the acquisitions that took place several years ago. In addition, Lane says there is more than $300 million of committed capital in private equity groups “that is just waiting to be invested in the right transactions in the document management business.” Private equity firms are eying those businesses from a purely financial standpoint, with plans to invest in those businesses and then cash out by selling them. “We have a model that’s driven on financial performance of the business,” Lane says. “There is some strategic value to it, but it’s a private financial driven model. “This isn’t for every market and every size business,” he adds. “This is more for the larger wellrounded shredding or the larger well-rounded record storage businesses in the tier one markets. Now is definitely the time for them to open up and talk to these buyers about what they should do.” Lane and McGuire’s comments echo a recent report by Deloitte’s merger and acquisition services, which in September predicted a “buying spree” by U.S. corporations. “After a year or more of stockpiling cash to guard against economic challenges, executives ‘are starting to dip into their coffers, seizing the chance to make favorably priced acquisitions and upgrade facilities,’” it said, quoting from a July Wall Street Journal article. “As a result, this could be an opportune time for S corporation owners who are thinking about selling their businesses.” The current 15 percent capital gains tax went into effect in 2003 as part of the Bush administration’s Economic Growth and Tax Reconciliation Act. It was extended in 2006 under Bush’s Tax Increase Prevention and Reconciliation Act and is scheduled to expire, or “sunset,” at the end of this year — reverting back to its pre-2003 rate of 20 percent, an effective 33 percent increase — unless Congress acts.
Security Shredding & Storage News. September / October 2010
3
Security Shredding & Storage News
Engineered for profit! Mobile and stationary Hard drive Shredders Data destruction solutions since 2000
Internal Compliance:
Three Key Strategies to Improved Information Destruction By Doug Balsley
IT STARTS EARLIER THAN YOU THINK
W www.DataSecurityTech.com
804.334.7882 Info Request #153
hen it’s time to securely and completely destroy sensitive paper documents, a proper disposal process is no longer optional. You need a rigorous, auditable chain of custody with careful controls to ensure the confidentiality and security of those documents prior to their thorough destruction and disposal. The regulatory penalties alone for lapses and failures are too high a price to pay, to say nothing of the publicity and shareholder dissatisfaction. At first glance, it’s easy to believe that the chain of custody for secure shredding starts with the vendor who should undergo careful scrutiny and ongoing monitoring. In reality, the chain of custody begins much sooner – at the point when the employee decides that a confidential paper document is no longer needed – and well before the contracted vendor enters the picture. That’s why it’s essential to adopt a more holistic view of the shredding chain of custody by strengthening the internal processes that take place before the vendor picks up materials to be destroyed. Savvy companies understand the importance of this perspective because the damage from any lapse will ordinarily and primarily accrue to the company, regardless of where the document breach occurred. Culpability begins and ends with the document’s original owner. When the adverse publicity hits, the fallout impacts your brand and reputation, not just your legal standing and finances. That’s why internal compliance with your secure shredding initiative, prior to handoff, is just as important as partnering with a strong, reliable vendor. But, how do you get everyone in the organization to take their responsibilities seriously and be accountable for their participation and compliance with your secure shredding initiatives? Below are three key strategies to increase the likelihood that employees “do the right thing” when faced with a paper document that they no longer need.
STRATEGY NO. 1 – COMMUNICATION: BUILD A CULTURE AROUND SHREDDING COMPLIANCE
T
he challenge surrounding the adoption of a shredding policy is achieving sustainability across the organization so that your program doesn’t fade from the corporate culture within weeks or months of implementation. Obviously, you can’t stand next to all your employees – all day, every day – and coach them about how to dispose of their confidential documents. Instead, you need to fully and memorably communicate to all of them about their duties and why it’s important to follow your prescribed process. Building a culture of shredding compliance starts with communicating a range of key messages to all employees through different channels on a regular basis. •
www.datasecuritytech.com www.bomaccarts.com Info Request #133
Make It Company Policy. Most companies find that it’s effective to start their shredding program by creating a formal employee policy defining what documents must be shredded, which ones are optional, and which ones do not require shredding. What constitutes the best policy? It depends – and the right answer carefully balances simplicity and cost. For example, a “shred all” policy is easy to remember. Regardless, all good policies use simple, clear language. The best policies are regularly reviewed and updated as needed – for instance, as businesses are acquired or divested.
4 Security Shredding & Storage News. September / October 2010
Continued on page 6
Paper Deflector
190˚ Nylon Hinges
DURABLE • Ultra strong modular base uses low profile castors which allow the console to slide easily and protects the door at its greatest impact points
Nylon Hooks
• 190˚ Nylon hinges keep the door out of the way when emptying Self Closing Lock
High Security Lock Guard
FLEXIBLE • Brand your business with custom colored hinges, base and hooks • Customized ID badges with your company’s contact information • Part of the One Key Solution
No Bag Removal Obstructions
EFFICIENT • Nylon hooks are easier to hook and unhook which prevents collection employees from being injured by metal hooks Modular Base
• 25% Lighter than competitor consoles with improved strength and quick setup at your customer’s location
Now available!
The Self-Closing Lock
Go Ahead, Get Attached to it This console is going to be around for a long time. The DuraFlex console is designed with ultra strong poly components that reinforce all the points where traditional consoles fail. The DuraFlex gives you the efficiency, durability and flexibility that will make it an asset for your company for many years.
1.866.526.4579
info@allsourcemfg.com
Saving you time and effort.
• Opens with only a quarter turn! • Locks automatically when door is closed!
The DuraFlex is made with 25% recycled content
www.allsourcemfg.com
Proudly Made in North America Info Request #112
Security Shredding & Storage News. September / October 2010
5
Security Shredding & Storage News
Internal Compliance:
Three Key Strategies to Improved Information Destruction Continued from page 4 •
Get It in Writing. As they do with most new policies, many companies find that it’s good practice to obtain a signed acknowledgment from employees confirming that they’ve read, and that they understand and accept, the company’s compliance requirements for shredding sensitive documents. This closes up a potential loophole.
•
Execute an Internal Communication Strategy. Setting the stage for internal compliance with shredding policy begins with communication. The key is to use a series of effective communications vehicles to execute a complete announcement strategy. Examples include a pre-launch communication letter to managers and employees and an initial organization announcement at time of launch. Many companies find it’s a good idea to describe the shredding policy in new employee orientations and to provide occasional reminders at team and department meetings. In addition, program posters placed at the point of disposal can reinforce the importance of an organization’s shredding policies and encourage employee participation.
•
Conduct Regular Follow-up Communications. Regular reminders, perhaps quarterly or semi-annually that reiterate the company’s shredding policy, are an important element of the communications plan. Some companies even put up posters in common areas to help keep the shredding policy near top of mind and to ingrain the process within the company culture. Continued on next page
Info Request #117
www.keithwalkingfloor.com
Info Request #106
6 Security Shredding & Storage News. September / October 2010
Security Shredding & Storage News Continued from previous page
STRATEGY NO. 2. – CONVENIENCE DRIVES COMPLIANCE
W
hen it comes to secure shredding, there’s one inescapable truth that should govern deployment efforts: convenience drives compliance. The closer the points of disposal are to employees, the greater the compliance with shredding policies. If containers are too far away or are continually stuffed to the brim because of too few containers in the vicinity, compliance will naturally decline. Some companies build extra steps into their shredding processes to drive up the convenience factor for employees. For instance, in some companies, deskside shred containers can be deployed to eliminate the need for an employee to walk down a hall to a publicly located, locked container for disposal. Instead, the employee collects documents to be shredded in a small container and periodically brings a deskside container of documents to be shredded to the shared container. This minimizes employee inconvenience without requiring an overabundance of public containers. An overused public container can bring a shredding initiative to a complete halt. What’s particularly threatening about this scenario is the long-term damage it inflicts: confidence in the program can fade quickly and employees will soon return to their previous routine. The result is that you pay for a shredding program that’s not being properly used – and you remain vulnerable to breaches.
STRATEGY NO. 3 – REPORTING: WHAT’S MONITORED IS WHAT’S MANAGED
I
n addition to communications and convenience, shredding program success depends heavily on the ability to measure and monitor program participation. This kind of visibility should be a prime objective when implementing your shredding program. While “Management by Walking Around” is a time-honored technique for executives, it isn’t a strategy for managing the shredding program for a multi-location company. Walking around to look at shredding containers and making anecdotal observations won’t give you the true visibility you need. Instead, consistent reporting across all locations can be one of the most effective methods for ensuring visibility and oversight. Best practice favors vendors who can provide consistent, timely reporting across all locations to guide decisionmaking and program development. Top-notch shredding partners can capture utilization data and time of service for all of your containers so that your company has a time-stamped proof of service for every location. This creates a granular audit trail through which you can show that all of your locations have been set up with a shredding program. You can show the utilization percentages for individual containers and hundreds of locations. You can show the service schedule. And you can even show specific receipts for pickups at individual locations.
CONCLUSION
I
nternal compliance is an often overlooked cornerstone of a successful shredding program. To achieve a sustained level of participation in a corporate shredding program, administrators should work diligently to create a culture of compliance that encompasses a comprehensive internal communications program. Because convenience drives compliance, another key factor is to simplify shredding participation. Finally, companies should carefully monitor participation and optimize their shredding through regular detailed reports and analysis. Doug Balsley is Vice President of Secure Shredding, North America for Iron Mountain. For more information visit www.ironmountain.com.
Alpine Shredders Ends Joint Venture With AXO Shredders Limited
A
XO Shredders Corp. recently changed its name to Alpine Shredders Limited a n d e n d e d i t s a s s o c i at i o n w i t h N e w Z e a l a n d b a s e d A XO S h r e d d e r s L i m i t e d . A l p i n e S h r e d d e r s c o n t i nu e s forward under the ongoing leadership of industry icon and COO Peter Viveen and his partners. According to Mr. Viveen, this announcement hopefully clarifies the confusion that has persisted (in the marketplace) since the NAID industry conference in Las Vegas. “The change was necessary and long overdue. The inner workings at Alpine remain unchanged. We continue to utilize what have been our own designs and engineering and remain the only mobile shredding equipment manufacturer to engineer, manufacture and service the complete mobile package including the industry’s most simple and robust shredder, unload system, truck body, control system and lifter.” In conjunction with the name change, Alpine Shredders has launched a revised website at www.alpineshredders.com combined with a fresh new logo.
For Sale:
Single-Shaft Shredder
www.alpineshredders.com
ZENO ZTLP 24x40 model 300 with three phase 480V 30HP motor. 1” screen. This single-shaft shredder was taken in on trade by Data Security Technologies and has only 9 hours of operation on it! Was $23,900 NOW $18,500 Call Bill at 804-334-7882
Info Request #101
Security Shredding & Storage News. September / October 2010
7
Security Shredding & Storage News Would you like more information about the products or services advertised in this publication? Simply complete the form located between pages 8 & 9 and fax it to us today at 440-257-6459.
Chaotics:
Managing Organizational Change and Stress in a Turbulent Environment By Jane Boucher
H
ealth care costs are skyrocketing. It is public knowledge that there is a correlation between disease and stress. In order to save money, many organizations are now implementing stress management programs. Most larger organizations already have some form of employee assistance or wellness program. Smaller organizations are following suit. It just makes good business sense. Businesses are realizing that “prevention” saves money in the long run. Organizations are even realizing that it makes sense to pay for addiction/ recovery programs before an addicted employee gets to the stage of needing serious physical treatment or surgery. It also makes good sense to promote stressrelieving fitness programs, rather than waiting for an overworked, overstressed employee to need an expensive heart bypass operation. And speaking of overworked, overstressed employees…who hasn’t heard of the Jet Blue flight attendant, Steven Slater? He has become a symbol for every fed-up, stressed-out worker in America. Fortunately, his heart didn’t blow up before he got out. Instead, after dealing with an unreasonable, rude passenger for the umpteenth time…he simply had enough after 20 years. He grabbed a beer and slid down the plane’s emergency exit chute. I cannot tell you how many stressed out people I meet in my work who wish they could slide down “an emergency chute.” This level of stress is all so avoidable if your organization has a wellness program. Every employee should know the help that is available before they find themselves in a crisis situation. Your organization might have a short-term counseling service available during off-hours at no charge to the employee or a 24 hour helpline. Fitness and wellness programs are often included in some prevention programs. There are even incentive programs that reward employees who make fitness a priority. Take advantage of such a program if it is available. If your organization does not have such a program, you may want to propose one. Your health insurance provider will be able to supply the statistics about cost benefits. Take the initiative and help start your company’s wellness program. It may save your life. The author of seven books, Jane Boucher uses both the podium and paper to promote personal and professional excellence. Her best seller, How To Love the Job You Hate has been profiled in various national magazines and major daily newspapers. Jane is a recognized authority on workplace issues. She is also a nationally syndicated newspaper columnist, as well as a certified speaking professional. For more information, Jane can be reached at jane@janeboucher.com or visit www. janeboucher.com.
Attention: Document Destruction Contractors! Help Your Customers Find a Home for Their Outdated Electronics Do what many ‘leading recyclers’ have done ... Partner with Dan-Mar and turn your scrap into cash! Precious metal value is going up and so is the demand for electronic scrap. As a global leader in asset recovery, Dan-Mar is ready to present you with fresh thinking on how you can maximize your profits. Call Dan-Mar today! ph: 631-242-8877 • fax: 631-242-8995 150 West Industry Court, Deer Park, NY 11729 e-mail: recycle@dan-mar.com • www.dan-mar.com
The Name to Trust in Surplus™
Info Request #114
8 Security Shredding & Storage News. September / October 2010
Dan-Mar Buys: • • • • • • • • •
Precious Metal Military Electronics Semiconductors Components Scrap PC Boards Telecommunications Integrated Circuits Networking & Test Equipment E-Scrap
In the News Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
T
he Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $518 billion equipment finance sector, showed overall new business volume for August increased 16 percent when compared to the same period in 2009. When compared to the prior month, however, the MLFI-25 reported new business volume declined from $5.6 billion to $4.3 billion. This drop follows two consecutive months of growth. Credit quality is mixed as well. Receivables over 30 days increased to 4.3 percent, up from 3.5 percent in the prior month, but improved when compared to the year-earlier period (5.0%). Charge-offs fell for the second consecutive month, from 1.5 percent in July to 1.3 percent in August. And, there was considerable improvement when compared to the same period in 2009. The percentage of credit approvals increased to 73 percent in August, matching the highest approval ratio since September 2008. Sixty-eight percent of participating organizations reported submitting more transactions for approval during the month. Finally, total headcount for equipment finance companies increased during the July-August period. Supplemental data shows that trucking and construction assets lead the underperforming sectors. The Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for September is 56.9, down from 58.2 in August. For more detailed information on the MCI-EFI visit www.LeaseFoundation.org. “While some equipment financing metrics are improving and moving in the right direction, other data reflect continued uncertainty about the economy and a less-than-robust economic recovery,” said ELFA president William G. Sutton. “According to the data provided by ELFA members, a majority of organizations are experiencing a gradual, but uneven, improvement in business activity compared to 2009.” “While CSI would concur that there are some modest improvements in most of the demonstrable year-over-year metrics tracked by the MLFI -25, not enough evidence exists to lead us to believe that we are firmly on the ‘yellow brick road’ to recovery,” said Robert Rinaldi, Senior Vice President, CSI Leasing, Inc. “We have more than anecdotal evidence to suggest that possible corporate tax impacts resulting from fiscal imbalances at the federal, state and local levels, along with dissatisfaction with recently enacted regulatory policies, are still causing businesses to hold back on many of their strategic growth initiatives. Additionally, we think many businesses are just now becoming aware of the looming effects of yet another regulatory
initiative that will complicate how they will acquire equipment, i.e., FASB / IASB lease accounting changes. The result of all of this basically is preventing consistently elevated levels in capital equipment acquisitions, in which our industry plays a vital role.” ELFA is the premier source for statistics and analyses concerning the equipment finance sector. Please visit http://www.elfaonline.org/ind/research/ for additional information. The Equipment Leasing & Finance Foundation is the non-profit affiliate to the Equipment Leasing and Finance Association, providing future-focused research to the equipment finance industry. For more information please visit the website at www. leasefoundation.org.
Silver Recovery Creates Revenue
Iron Mountain Joins Top Industry Certification Board for Document Shredding
I
ron Mountain, the information management company, recently announced that it has been elected to the National Association for Information Destruction (NAID) Certification Review Board. Sal Napoli, director of secure shredding for Iron Mountain, will join the board and help encourage shredding vendors to receive NAID Certification and adhere to its standards. Iron Mountain itself recently achieved NAID AAA Certification for its secure shredding operations in North America. “With Iron Mountain completing certification, NAID AAA Certification moves closer to becoming the default criteria for determining which shredding vendors are invited to compete for secure destruction opportunities,” said Robert Johnson, executive director of NAID. “We are proud to have such a highly regarded service provider lend their credibility to our program.” NAID offers its certification program on a voluntary basis to NAID member companies providing information destruction services. Through the program, NAID members may seek certification for mobile and/or plant-based operations in paper destruction. Companies achieve and maintain NAID AAA Certification through an on-going series of announced and unannounced audits of operations at their secure shredding facilities and in the field. Currently, there are more than 700 NAID AAA Certified locations in North America, as well as a growing number around the world.
Read more articles and short news online ... Visit our website at www.sssnews.com.
X-ray Microfilm Microfiche Medical Files Archive Media Call for a FREE Silver Recovery Guidebook
www.gemark.com 1-866-943-6275 Info Request #110
Security Shredding & Storage News. September / October 2010
9
ARMA INTERNATIONAL 55TH ANNUAL CONFERENCE & EXPO
NOVEMBER 7-10, 2010 REGISTER TODAY! WWW.ARMA.ORG/CONFERENCE 10 Security Shredding & Storage News. September / October 2010
In the News BofA Settles Data Theft Case; 17 Million May Be Affected
B
ank of America Corp. has agreed to settle the largest reported case of data theft by providing up to 17 million customers of Countrywide Financial’s mortgage unit with free credit monitoring, identity theft insurance and reimbursements for losses of up to $50,000. A federal court judge approved the agreement, describing it as fair, reasonable and adequate. It settles more than 30 lawsuits and nationwide class action lawsuits over the theft of personal and financial information. Bank of America, which acquired Countrywide in 2008, denied any wrongdoing. According to CWdataclaims.com, anyone who provided personal information or made mortgage payments to Countrywide prior to July 1, 2008 is eligible for the settlement. The settlement came just a few months before the federal court trial of Rene L. Rebollo Jr., was scheduled to begin. Rebollo, who worked for Countrywide’s sub-prime unit, is accused of downloading customers’ personal data – including Social Security numbers and other confidential information – onto thumb drives and selling the material to other mortgage lenders. He is charged with fraud, unauthorized access to the computer of a financial institution, illegal use of confidential information, and disclosing Social Security numbers. He has pleaded not guilty to the charges.
Zurich Fined $3.6 Million for Losing Data on Customers
Z
urich Insurance has been hit with the largest fine ever levied against a single organization for the loss of customers’ personal data, information-age.com reported. Zurich was fined $3.6 million by Britain’s Financial Services Authority following the loss of 46,000 customer records which included details on their identities, bank accounts and credit cards. The data loss came in 2008 after Zurich’s South African subsidiary lost an unencrypted back-up tape during a routine data transfer. The loss did not come to light until a year later. “[Zurich] failed to oversee the outsourcing arrangement effectively and did not have full control over the data being processed by Zurich SA,” said Margaret Cole, FSA director of enforcement and financial crime in a statement. “To make matters worse, Zurich UK was oblivious to the data loss incident until a year later.”
Study: E-Waste in Developing Countries to Surpass Developed Countries in 6 to 8 Years
T
he amount of electronic waste generated in developing countries will surpass that of developed countries within six to eight years, according to a study at pubs.acs.org. And within two decades, it said, that amount of e-waste will more than double, with some 400 million to 700 million obsolete personal computers generated by developing countries compared to 200 million to 300 million units in developed nations. The report in Environmental Science & Technology noted that increased sales of electronic products in developing countries was raising the question of whether informal recycling of e-waste in those nations was the result of international trade or domestic generation. Informal recycling practices – such as using acids and cyanide on circuit boards to extract copper – have caused serious environmental impacts, the study noted. “Our central assertion is that the new structure of global e-waste generation discovered here combined with economic and social considerations, call for a serious rethinking of e-waste policy,” it said. “We believe there are unexplored opportunities to mitigate informal recycling while enhancing economic and social benefits. Researchers and policy-makers need to work to develop and realize new solutions.”
Cresswood - Delivering Brand-Worthy Results Since 1978! “For NAID compliance, it was critical to achieve the right particle size for our ultra- secure accounts. We developed our branded Security Thread service around the ‘virtual confetti’ that we can produce through the Cresswood Shredder screen. From installation to Shredder performance, everything about Cresswood has been ‘top notch’!”
“Our Cresswood HF-7860 Low-RPM, Single-Shaft Shredder gives us the best ratio of throughput-to-horsepower, and maximizes cost efficiency. It’s the heaviest Shredder in it’s class, it’s very low-maintenance, and the design simplicity makes it safe for persons of all abilities to operate that’s essential for us.”
Jerry Siegel President/CEO
Charles Spencer Sales Manager, Midway Moving & Storage Operations Manager, Midway Document Destruction
MIDWAY MOVING AND STORAGE, located in Chicago, IL,
is the largest residential mover in the state. Midway also provides: off-site and on-site document destruction; secure storage; and information management. A Cresswood HF-7860-100 Shredder is the core of Midway’s fully integrated shredding system. For more on Midway, and their unique ‘for profit’ partnership to empower the Disabilities Community, read the SDB Cover Article, May/June 2010 Issue.
www.sdbmagazine.com/sdb-june-cover-story.aspx
Cresswood Offers:
Single-Shaft, Low-Speed, Eco-Friendly Shredders and Turnkey Systems for the Document Storage and Secure Destruction Industries - Paper, Plastic, Fabric, E-Scrap
800-962-7302 www.cresswood.com
55 West Lincoln Highway, Cortland, IL 60112
Info Request #134
Security Shredding & Storage News. September / October 2010 11
In the News
sss ad Oct 2010:PRISM AD
10/11/10
8:26 AM
Page 1
CONFERENCE CALENDAR
Access Information Management Announces Acquisition of the Records Storage Operations of Bekins Arcadia and Bekins San Diego
FUNDAMENTALS OF RECORD CENTER MANAGEMENT WORKSHOP DECEMBER 8-9, 2010 EMBASSY SUITES PHOENIX-SCOTTSDALE PHOENIX, ARIZONA, USA ASIA PACIFIC REGION CONFERENCE FEBRUARY 21-23, 2011 NEW WORLD HOTEL SAIGON HO CHI MINH CITY, VIETNAM ANNUAL CONFERENCE 2011 MAY 11-13, 2011 DORAL GOLF RESORT & SPA MIAMI, FLORIDA, USA As a global organization, PRISM International meetings visit three continents each year. In September PRISM International will team up with NAID-Europe to offer our Joint European Conference.
For more information or to register for these upcoming conferences. Please go to our NEW website at www.prismintl.org
A
ccess Information Management of Pleasanton, Calif., a provider of records management storage and destruction services for hardcopy and electronic records, recently announced the expansion of their Southern California business through the acquisition of the records storage operations of Bekins Moving and Storage in Arcadia and Bekins Moving and Storage in San Diego. “We are excited to welcome the Bekins Arcadia and San Diego clients to Access. This transition is a win-win for everyone. “said David Gesinger, Executive Vice President, Operations, Access Information Management. Access will offer former Bekins Arcadia and San Diego records storage clients continued records management services, without disruption, as well as the opportunity to take advantage of additional services with Access. With the full cooperation of the former Bekins records storage operations in Arcadia and San Diego, the client records previously stored in those facilities will be relocated and incorporated into existing, secure Access Information Management record center facilities in Southern California.
Reach More of Your Market...
Advertise in Security Shredding & Storage News. Call Rick Downing today at 440-257-6453 or email rickdowning@oh.rr.com.
for more info
www.naidonline.org 12 Security Shredding & Storage News. September / October 2010
In the News Europe Hits Record Paper Recycling Rate
A
72.2 percent paper recycling rate in Europe was a world record level in 2009, according to the European Recovered Paper Council (ERPC). Some 58 million tons of paper were recycled Euwidrecycling.com reported that the level surpassed the 2010 target of 66 percent, which had already been achieved in 2008. “The economic recession continued in 2009 and made the paper consumption drop to the level of 1998. This, together with industry’s continued effort to increase recycling made, for the second year in a row, the recycling rate jump up, resulting in a record high 72.2 percent,” explained Jori Ringman, secretary of the ERPC. The recycling rate is the ratio between the recycling and the consumption of paper. Ringman predicted that the recycling rate could drop slightly in 2010 – to 70 percent – as the economy recovers, making it difficult for recycling to immediately keep up with increase paper consumption.
Congress Acts to Ban Export of E-Waste to Developing Countries
F
ederal legislation that would ban the export of electronic waste from the U.S. to developing countries has been introduced in Congress. HR 6252 – The Responsible Electronics Recycling Act – was introduced in the House by Democratic Rep. Gene Green of Texas and co-sponsors Mike Thompson, D-CA and John Carter, R-Texas. The measure was sent to the House Committee on Energy and Commerce. According to zdnet.com, the proposed amendment to existing solid waste disposal laws would restrict export of virtually every non-working electronics device to developing nations. The bill would ban the export of non-functional electronic equipment, including personal computers, batteries, TVs and mobile phone. Non-hazardous and tested and working equipment and parts could still be exported to promote reuse. Other exemptions from the restrictions would include products under warranty being returned to the manufacturing facility that made them; products or parts being recalled, and crushed cathode ray tube (CRT) glass cullet that is cleaned and fully prepared as feedstock into CRT glass manufacturing facilities. “Every year, we scrap 400 million units of electronics in the U.S.,” Thompson said. “Each piece of e-waste can be incredibly harmful to our environment. Congressional action to stop the free flow of these dangerous materials is long overdue and we must act now before it is too late.”
always THE RIGHT FIT
Info Request #143
Quality Security Variety
FOR ALL YOUR EXECUTIVE CONSOLE NEEDS
Carts now available, please call for details.
CK Designs Manufacturing Inc. is an innovative and versatile company with a wide variety of executive consoles (Docu Protect). Our staff has been serving the document destruction industry since the mid 1990s. We have the right fit for all your executive console needs.
94 William Street Harriston, ON N0G 1Z0 ckdesigns@wightman.ca 1-519-338-5888 1-888-652-9319 (toll free) www.ckdesignsmfg.com
Info Request #108
Security Shredding & Storage News. September / October 2010 13
Product/Equipment Profiles
1st Paper Magnet in a Single Stream System
KEITH Offers Two-Year Warranty on WALKING FLOOR® System
MRA’s Franklin Street facility in Denver, CO recently retrofitted and upgraded their current sort line with state of the art Bollegraaf and TITECH equipment. Franklin Street is the first Single Stream facility in the country to install a Paper Magnet for removing paper from a container/residue stream. The upgrade has drastically improved the facility’s PET recovery and reduced the recyclable loss into residue. The system was designed and installed by Van Dyk Baler out of Stamford, CT. Seven additional Bollegraaf Paper Magnets have been purchased and are being installed in several recycling plants in North America. Van Dyk Baler Corp. is the exclusive North American Distributor for Bollegraaf Recycling Machinery. Specializing in design, manufacturing and servicing of Balers, dual & single stream systems, and MSW sorting systems.
he proven field performance of the KMD 175 has led KEITH Mfg. Co. to introduce a two-year warranty on all new KMD 175 drive unit models. The drive unit, which was introduced two years ago, has demonstrated such reliability all hydraulic parts will be covered by the extended warranty. A WALKING FLOOR system is a horizontal unloader, eliminating the need for tipping or dumping. Aluminum slats run the length of the truck box floor. Actuated by a four-phase hydraulic drive, slats move in groups of three, then together. This sequence “walks” material out. Systems can be bi-directional for both loading and unloading product. With few moving parts, the systems are durable and low in maintenance. KEITH Mfg. Co., the innovator of WALKING FLOOR technology, is located in Madras, Ore. WALKING FLOOR conveying and unloading systems are used in a variety of industries, including waste and recycling, agriculture, wood products and aggregates. Stationary products are also available.
W
For more information regarding Bollegraaf and Lubo Recycling Machinery in North America contact Van Dyk Baler Corp. at 203-967-1100 or info@vandykbaler.com or visit www.vandykbaler.com.
T
For more information contact Scott Cloud at 800-547-6161 or sales@keithwalkingfloor.com or visit www.keithwalkingfloor.com.
MOD Introduces Rolling Electronics Waste Collection Container
Wastequip Enhances Popular 6030HD Vertical Baler
he Poly-Trux® 54P-20R eWaste cart from recycling product manufacturer Meese Orbitron Dunne Co., Ashtabula, Ohio (www. Recycleosaurus.com) features a rugged, 20-bushel capacity container with a wide-mouth safety rim set atop premium, industrial-strength casters to accommodate the heavy, unwieldy computers, televisions, microwave ovens, fax machines and other electronics waste collected at municipal hazardous waste days, Earth Day events and other collection points. When filled, the rigid eWaste cart rolls easily onto a truck or trailer for transport while an optional canvas cover stretches around the container rim to keep the waste inside the cart and deter theft. A choice of 16 standard colors, plus optional custom colors and permanent, molded-in lettering, tracking numbers and graphics are available.
astequip has redesigned its most popular baler – the 6030HD – resulting in a feature- rich unit that features enhanced functionality combined with a 12 percent reduction in price. “The redesign of 6030HD Vertical Baler makes it more user-friendly and illustrates our commitment to continuous product improvement and to expanded cardboard recycling,” said Kirk Warren, technical products manager for Wastequip. The enhanced baler’s 27 ½-inch feed opening is one of the largest in the industry, making loading large cardboard boxes easier. Yet the overall unit remains 96 inches high, allowing it to fit under most doorways for ease of installation. The redesigned baler also features a 45-second cycle time, an ejection plate and built-in fork lift pockets for easier and safer transportation. The baler also includes front and rear retaining teeth to stabilize the bale and increase the density.
T
For more information, contact David McHugh, 4920 State Rd., Ashtabula, OH, 44005; 800-829-4535; fax 440-992-4667; dmchugh@modroto.com or visit www.Recycleosaurus.com.
Lock America Introduces Padlocks Compatible with Slam Locks and Data Cabinet Locks
L
ock America of Corona, California has developed a line of padlocks for the Information Destruction industry with key codes that are compatible with the locks used in most data storage cabinets and bins, including the popular Slam Lock. These padlocks allow shredding companies to provide their customers with padlocks with key codes that match the key codes of their customers’ bins and cabinets, allowing a single key to open all the bins, cabinets and padlocks at a site. For additional information, shredding companies should contact their bin or cabinet suppliers or Lock America (www. laigroup.com) at 800-422-2866, 951-277-5180, or sales@laigroup.com.
W
For more information please visit our website at www.wastequip.com.
Allegheny Introduces High-Capacity Hard Drive Shredder
A
llegheny recently introduced a rugged, high-capacity hard drive shredder to meet the growing need for destruction of computer hard drives, optical media and other electronic devices (cell phones, handheld devices, etc.). The Allegheny Hard Drive Shredder offers reliable, cost-effective destruction of obsolete electronic materials that pose a threat to data security. With its 7 ½ Hp motor and high-torque drive train, the Allegheny Hard Drive Shredder can thoroughly destroy more than 25-35 hard drives per minute – with virtually no noise or vibration. Our hard drive shredder is ideal for e-scrap recyclers, data centers and contract shredding services that need to destroy sensitive information.
14 Security Shredding & Storage News. September / October 2010
For more information, please contact us at 800-245-2497, 724-468-4300 or solutions@alleghenyshredders.com or visit our website at www.alleghenyshredders.com.
Now available!
The Self-Closing Lock
FREE Data Shredding! Shred the Data - Not the TAPE!
Saving you time and effort.
We Accept ALL BRANDS!
• Opens with only a quarter turn!
50 - 50,000 pcs
• Locks automatically when door is closed!
We Provide: Secure Data Eradication Full Chain of Custody
Want to Buy:
SUPER DLTII / LTO2,3,4 / AIT1,2,3,4 / AME2 VXA / VS1 / T10000 / 3592 / MLR,SLR / TR5,7 Remember it’s cool to be GREEN! Call Today! (As long as it’s done securely) 949.757. 0100
1.866.526.4579 | info@allsourcemfg.com | www.allsourcemfg.com
www.recycleyourmedia.com
Info Request #144
Info Request #154
Info Request #152
The only thing stronger than our balers is the loyalty of our customers!
800.373.9131 770.631.7290 www.harrisequip.com
www.titanconveyors.com
Info Request #140
Info Request #146
S_HPSeries_SeptOct2010.indd 1
CALL EXCEL
1-800-475-8812
Info Request #139
9/2/10 1:23 PM
BOX LIFT
Improve your vertical space utilization while improving safety and efficiency. The TL Modular Material Lift (VRC) is the most advanced, versatile and easy to use lift in its class.
TL Modular Material Lift
for Boxes • Carts • Files & More
800-699-2212 www.customindprod.com Info Request #145
Info Request #150
Info Request #131
Security Shredding & Storage News. September / October 2010 15
JAKE IS PROUD TO INTRODUCE
THE PEDIGREE SERIES A worthy counterpart to our renowned “Retriever” and best selling consoles, these bins will seamlessly integrate into your current container inventory while providing you the valued peace of mind knowing it’s a Jake, Connor & Crew product. • • • • • • •
available in 96, 64, and 32 gallon sizes a customized reinforced lid anti-fish paper slot hasp ready for your padlock guaranteed against manufacturer’s defects internationally proven durability optional heavy duty EZ Wheel attachment (see inset)
Now all of your container requirements can be satisfied by the leading manufacturer of document protection bins and consoles in the world!
Your Best Friend in Document Protection
Check out our latest promotion at
www.jakeconnorandcrew.com/jakesn2010 or mention promo code Jakesn2010 when you call 519.576.9865. Info Request #105