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Recession impact lesser on mobile shredding firms

AXO Shredders now a Shred-Tech Company
News / December 2008

Recession Opportunity

The worldwide recession is having a dramatic effect on some businesses, however some mobile shredding companies are reporting an increase in business.

When staff are moved from office to office or made redundant they generate waste paper, a portion of which ends up being shredded. Mobile shredding firms report being very busy due to this.

In addition there is a reported increase in shredding archives from storage facilities that companies are quitting to reduce rent.

Although the price of recovered paper has fallen, mobile shredding company have little reliance on revenue from the sale of this commodity, so haven't been as affected by the price drop as off-site shredding firms. Instead, mobile shredding firms make the bulk of their revenue "up front" from shredding fees.

Most affected are shredding firms who have a business model that is highly reliant on the recovered paper prices, and who were charging very little for the actual service of shredding. There is pressure for them to increase their shredding fee, giving a more even playing field between the shredding firms with the overheads required to provide a very complete shredding service and those who may simply bale and send to a paper recycling firm.



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