Dynamics in the Cleveland market are motivating a recycler who
operates in three states to keep growing and changing his
business practices, he said.
Yehuda Perrenoud, the
owner and managing director of Western Reserve Recycling,
opened the companys third Ohio location last year to
increase volumes. The company now has businesses in
Warrensville Heights, Collinwood and Cleveland.
"I opened the third
Cleveland yard because I saw an opportunity and this location
seemed wide open. You have no choice but to find and buy more
pounds these days because the margins just arent there,"
Perrenoud, a 30-year veteran of the industry, told
Perrenoud also owns
City Scrap Metal Inc., which has locations in Lees
Summit, Mo., and Chicago, but said Cleveland is the one area
where it is getting tougher to secure scrap.
"Margins have not
become a big factor, but the only factor. Everything is going
upfrom utilities to fuel to insuranceso where you
were making 20 cents you are now making 18 cents and need to
make up the difference with more volume," he said.
isnt like Wal-Mart where you can raise prices. You
cant ask who you supply to pay you more money because
everyone gets the same," Perrenoud added. "We never check
the competitors price. We dont care what
others are paying because we know what we can pay and make a
The operations serving
Cleveland are within 20 minutes of each other but are
convenient to customers on all sides of town. The locations are
open Sundays and holidays to take advantage of
"Sunday is one of our
better days. We will do as much in four hours on Sunday as we
would do in a full day during the week. We are located in hubs
where there is a large peddler trade," Perrenoud said, adding
that employees like the seven-day schedule. "Some of our
employees would rather work on Sunday and have a day off during
the week, and it was their idea to be open half days on
The recycler also
bales, shears and has a small shredder used to process lighter