AXO NEWS
Shredding Industry
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Jun '06

Congratulations

Congratulations to GHS, Datashredders, Shredeasy and Katana on the recent commissioning of their new AXO Mobile Document Shredding Trucks and Electric Drive Shredding Machines. We wish them all the best as they continue to grow.


Reliability Proves Popular in Auckland

The shredding industry is busy in most places, and Auckland, New Zealand is no exception. A leader in the industry in New Zealand is Document Destruction Services, which offers both document shredding and records storage services throughout New Zealand. 12 months ago the Auckland site for Document Destruction installed an electric drive shredding machine from AXO to cope with their increasing volumes.

"After some initial tweaking to get the machine operating how we wanted we now only have to give it a couple of shots of grease at the start of each shift - there's nothing much else to do on the machine" says Andrew Hales, Destruction Coordinator at the site. "Cutting blade failures and paper jams were previously our greatest cause of down time.

AXO's direct drive and advanced solid shaft design, combined with their SuperSmooth Software and Auto Reverse have eliminated these problems. We no longer lose time clearing paper jams, or breaking down product to prevent them, and for the first time ever we have made it through a 12 month period with out a single blade failure on a shredding machine.

By eliminating the need for torque nuts on our shredding machines, we've also eliminated the time spent maintaining them, it's all time now spent on more productive tasks. All in all the machine has been a great success for us", finished Hales.

Equipment Financing and Leaseline Financial Services Pty Ltd.

The acquisition of any large item of equipment is a major consideration for most businesses and all too often businesses defer the decision to buy, especially at a time when cash resources are limited and financing is considered too expensive.

Financing new equipment is not as expensive or difficult as many are led to believe as installments can be structured to suit the cash flow requirements and lease rentals are 100% tax allowable. Also, the acquisition of the new equipment can giver the purchaser a commercial advantage which results in increased revenue, so improving the business strength.

Specialising in asset finance, Leaseline find that increasingly finance companies pay greater attention towards the revenue generating capacity and secondary market value of the equipment rather than the balance sheet strength of the company.

In working with AXO, Leaseline can provide finance solutions to businesses both large and small, new start and blue chip. We offer customers a wide selection of financial facilities ranging from hire purchase and finance lease through to operating lease and chattel mortgage. Our financial solutions are as individual as our customers and their requirements.

Contact Harry Anderson at Leaseline Financial Services Pty Ltd - Tel: (03) 9867 3955 or email: anderson@leaseline.com.au

North America grows, others catch up.

The mobile shredding industry is in a growth phase in many countries at present, with additional trucks being added to fleets in even the most saturated markets in North America.

Cities such as Toronto and Detroit have had growing mobile shredding truck fleets for the last 20 years, and due to publicity with regards to identity theft and more understanding of mobile shredding as an alternative to off-site shredding, the demand for onsite destruction continues to grow.

Toronto is said to have 56 mobile shredding trucks at present, which represents one for every 39,300 of its 2.2m population, with the latest truck to be added being an AXO/Kenworth for Blue Pencil Mobile Shredding and Recycling.

The mobile shredding business is also now recognized as a cash earner by several corporations, who have invested heavily over the last few years.
Companies such as Cintas and Brinks Security have entered the market, and with deep pockets have made many acquisitions of pioneer mom and pop mobile shredding companies, to the delight of many former business owners.

By contrast, UK mobile shredding is said to be where North America was 10 years ago, but is catching up fast as the business owners learn the approach from the North American operators and quick growth is best achieved through telemarketing, active direct selling and a quality service.

Mainland Europe trails the UK, while in Australasia and parts of Asia, in spite the rise of identity theft and information protection laws, mobile shredding is in its infancy, with operators enjoying an environment similar to the United States approximately 15 years ago.

Because they can learn the simple lessons from other markets, because the vehicle technology is now so much more advanced and because of higher standards of privacy now than previously, the growth in these less developed markets is expected to be fastest of all as the catch-up pace quickens.

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