When it was
Fighting on fewer fronts
Today, two large national players
Ian Taylor, CEO of Eagle Secure Shredding, Tucker, Georgia, describes the document destruction industry as being better than it has been in the last four or five years. While he says many factors are at play, the primary reason is consolidation. “We are not fighting on all fronts,” he says.
The service providers who were pushing down service prices in his market have gone out of business, Taylor says. “Pricing has become more robust, and we have been able to increase pricing and see it stick.” While he describes the price increases as “nominal,” Taylor adds, “People are willing to accept that to get the quality of service they want, they have to pay for it.”
While Shred-it was founded based on an on-site service model, its current owner is trying to move the company to an off-site model. In
Arnold said nearly $20 million in anticipated reroute “synergies” would be extended into 2017, with their full impact realized in 2018.
As a result of Shred-it’s change in
“Pricing has become more robust, and we have been able to increase pricing and see it stick. People are willing to accept that to get the quality of service they want, they have to pay for it.” – Ian Taylor, CEO of Eagle Secure Shredding
Off-site versus on-site
Androutsopoulos established Vangel Paper with her husband, Angelos, in late 1988. In the mid-1990s, Vangel began offering off-site document shredding services to its existing clients as a courtesy, she says. Of course, that changed when they began to realize the importance of secure destruction services to Vangel’s growth.
Androutsopoulos says she never wanted to get into the on-site shredding business but did so at a client’s request in the summer of 2009. Today, Vangel has two shred trucks and its business is evenly split between on-site and off-site services. However, Androutsopoulos admits that she has been trying to grow Vangel’s on-site accounts to increase route density.
But, she says attitudes toward off-site shredding are changing as service providers and clients realize the importance of process in secure destruction services.
Cory Tomczyk, president and founder of IROW, Mosinee, Wisconsin, provides off-site secure shredding,
IROW currently operates a straight truck and a collection truck to service its secure destruction clients, though Tomczyk says he is considering adding a third collection vehicle.
He says some prospects can be nervous initially when they learn IROW provides off-site rather than on-site destruction services, though they are not necessarily the large accounts in the area. “What is funny is that we do all the big operations—the hospital systems—up here,” Tomczyk says. “It’s the four-person insurance office that says they have to have on-site.”
Tomczyk says, while he has looked at shred trucks, because IROW’s service area is “too rural and too spread out,” the on-site model doesn’t make financial sense.
Even the national service providers with clients in the area that used to be serviced on-site have transitioned them to off-site service, he says.
Eagle Secure Shredding operates six shred trucks serving the Atlanta area. Taylor says the difference in price between on-site and off-site shredding in the area “is almost nonexistent.” That situation resulted six or seven years ago, he says, “with some crazy operators in our market” who slashed pricing for on-site service.
“The expectation is that it will be done on-site, and they understand that it will cost a little more,” he says of clients and prospects in the area.
Taylor says he “can’t make the numbers work” when it comes to off-site shredding. “Our cost is collecting the material. The throughput on a modern shred truck is 10 times what it was 10 years ago.”
PRSS operates 21 trucks—18 on-site and three off-site.
Room for growth
While sources agree organizations affected by the Health Insurance Portability and Accountability Act (HIPAA) understand the need to securely destroy documents, not all industries recognize the liabilities associated with improperly disposing of sensitive information. Yet others insist on doing it in-house. Therefore, educating prospects remains something secure destruction service providers find themselves doing.
Androutsopoulos says the message that security and process are important when it comes to destroying confidential documents still hasn’t penetrated with some prospects. “They see going paperless as an option instead of getting a NAID (National Association for Information Destruction) certified vendor to shred their paper.”
She adds, “There is still plenty of room for growth within the industry. But I think you’re going to see less and less paper and more growth in hard drives and SSDs (solid state drives).”
Taylor says Eagle Secure Shredding has grown 25 to 30 percent on
While he says companies in his area that fall under HIPAA understand the need for secure destruction, some manufacturers “could stand to get with the program a little bit more.”
IROW educates small businesses in its area on risks associated with unsecured disposal of documents that contain sensitive information. Tomczyk says this process can help to cement business relationships.
Despite the industry maturing, he says, “There is room for growth, even for us.”