M&E Appraisal Associates, Inc. (“M&EAA”) provides certified scrap metals recycling equipment appraisals. M&EAA recently appraised the machinery & equipment of a ferrous and non ferrous scrap metals recycling company.

The subject machinery & equipment appraised included hydraulic shears (fixed and portable attachment types), balers, hydraulic excavators and material handlers, wheel loaders, skidsteer loaders, forklifts, over the road trucks and trailers, roll off equipment, and roll off conatiners typically ranging from 10 to 40 cubic yard capacities.

Operators in this industry are engaged in the collection, processing and recycling of ferrous metals, such as iron and steel, and nonferrous metals, such as aluminum, copper and nickel. The typical recycling process involves sorting, shearing, shredding, torching and baling scrap metal to be sold to downstream metal smelters for further processing.

The scrap metal recycling industry has been exposed to the ups and downs of the global economy over the past five years. While the industry continued to improve through 2011 and 2012, domestic and international demand conditions have softened and the industry has yet to reach its prerecession heights. However, the industry is expected to experience a less volatile period over the five years to 2020 as metal price fluctuations are anticipated to stabilize.

Appraisal Conclusions: the values concluded for the subject items were predicated on the type of machinery & equipment, and other factors such as age, condition, size or capacity, design, function, utility, and overall anticipated market appeal. Furthermore, the economic factors discussed were also considered. The concluded values for the subject machinery & equipment were very favorable, as of the effective date of the appraisal.