Scraponomics Episode 94: Metal Theft Presentation (Cont.) - Why We Exist

“Life is like a wheel. Sooner or later, it always comes around to where you started again.” — Stephen King

Continuing from last week, I broke down my presentation regarding metal theft into four sections, the first of which was to explain the scrap-recycling industry’s purpose; what we do, why we buy scrap material, etc.

We talk about the scrap-recycling industry’s purpose all the time on Scraponomics, but nevertheless, let’s go over a few core concepts again.

Imagine the recycling process, if you will, like a wheel that continuously spins. Every portion of that wheel spins in conjunction with the rest of it, much like every part of the recycling process works in balance with the others. In other words, manufacturers only have a demand to make new products because consumers want them made, and mills only have a demand for processed scrap material because manufacturers want the newly re-melted steel or re-pulped paper, for example, to make those products. Scrap-processors like Friedland only have a demand to buy scrap material like old stoves because mills want to re-melt the steel. The reason we can buy scrap, and the reason it’s recyclable at all is because it has a future purpose.

If the wheel stops, the whole thing stops. It’s not like only one component can stop at a time. Furthermore, it would only stop if the consumer’s demand for new products stops. We can talk about over-consumption in society, but sooner or later, stuff has to be made. We exist because the demand to make new products exists.

If you take the time to explore the scrap industry, you’ll have a much better understanding, not only of why metal theft occurs, but also how to help reduce it. Next week, we’ll discuss the metal theft issue, itself; the problem and some potential solutions.

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