security shredding & storage news jul/aug 2011
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Jul/Aug 2011 edition of Security Shredding & Storage NewsTRANSCRIPT
Volume 8, Issue 4 July / August 2011
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PeRMIT No. 2
Visit us online at www.sssnews.com
&Security Shredding Storage NewsOfficial Publication of the Security Shredding & Paper Recovery Markets
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Continued on page 3
Gaining Cooperation: Three Maxims for Successful Negotiation
HICCUP Your Way Past Competitors on Facebook
HIPAA the Biggest Challenge to IT Security, Says Ipswitch Survey
House Introduces RERA Act on E-Waste Exportation
Feds Debut E-Waste Program, But Only Domestically
InsIde ThIs Issue7
8
13
16
ATTENTION: READERS !
Are you looking for Products, Equipment or Services for your business? If so, please check out these
leading companies advertised in this issue:
ColleCtion & Storage ContainerSAll Source Security Container Mfg. Ltd. – pg 5 & 17
Bomac Carts – pg 15Jake, Connor & Crew – pg 19
loCk & loCking SyStemSLock America Intl. – pg 17
mobile truCk ShredderSAlpine Shredders Ltd – pg 9Shred-Tech Limited – pg 16
ShredFast Inc – pg 3
moving Floor SyStemKeith Manufacturing – pg 16
PaPer balerSHarris – pg 17
IPS Balers, Inc. – pg 17NEXGEN – pg 6
rePlaCement PartSDun-Rite Tool – pg 4
Stationary ShredderS & grinderSAllegheny Shredders – pg 6
Cresswood Recycling Systems – pg 4Schutte-Buffalo Hammer Mill, LLC – pg 2
UNTHA America – pg 20Vecoplan LLC – pg 15
Waste Revolution – pg 17
WaSte Commodity PurChaSerSDan-Mar Components – pg 10
SMS Memory – pg 17
Even before Andrew Bloom purchased his first mobile shredding truck, he had documents in hand to help ensure the success of his Pompano
Beach, Fla., business.Those documents were service agreements
for his customers, something he says should be “standard practice” for all companies.
“It makes your business stronger. You’ll keep your customers longer. And it makes your business more valuable,” Bloom says.
Bloom started Shred Trust about five years ago. The company, serving both small and medium size companies in South Florida, operates three mobile shredding trucks and one collection truck.
The fact that a relative newcomer to the document destruction business recognized the importance and value of service agreements is a far cry from the early years of the industry, when shredding companies touted the fact that no such agreements were necessary. Those “no obligation” offers were their way of attracting first-time customers.
“By not having a service contract, it removed a major barrier from the selling process,” says Jim McGuire, president of Shotgun Capital Advisors, a merger and acquisition advisory firm in Southlake, Texas. “It was a brilliant move on the part of industry back when the industry was predominantly selling on education . . .
“It was scripted in a lot of sales presentations that said, ‘Hey, no service
Service Contract Key Document for Document Destruction Firms
contracts. If you don’t see the value in us, or your organization is disappointed at any time, all you have to do is pick up and telephone and call us. We’ll come in and remove the bins, shred the last bit of paper, send you a final invoice and you’re done,’” McGuire says. “But everybody knew there was a high sticking rate.”
Today, as competition in the document destruction industry has intensified — from large established companies and newcomers entering the market and those offering low prices — service agreements have become an integral part of running a business.
BY P.J. HELLER
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Security Shredding & Storage News. July / August 20112Info Request #132
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PubliCation StaFFPublisher / editor
Rick Downing
Contributing editors / WritersGenae Girard • P.J. Heller Robert J. Rua • Carl Van
Production / layoutBarb Fontanelle • Christine Pavelka
advertising SalesRick Downing
Subscription / CirculationDonna Downing
editorial, Circulation & advertising office6075 Hopkins Rd., Mentor, OH 44060Ph: 440-257-6453 • Fax: 440-257-6459
Email: [email protected]
For subscription information, call 440-257-6453
Security Shredding & Storage News (ISSN #1549-8654) is published bimonthly by Downing & Associates. Reproductions or transmission of Security Shredding & Storage News, in whole or in part, without written permission of the publisher is prohibited.
Annual subscription rate U.S. is $19.95. Outside of the U.S. add $10.00 ($29.95). Contact our main office, or mail-in the subscription form with payment.
©Copyright 2011 by Downing & Associates.
“There are those that still operate without service contracts,” McGuire says. “In my opinion, they’re missing the boat.”
Elliott J. Brown, a lawyer with offices in New York and New Jersey, recommends all types of service providers, not just those in the document destruction industry, have a written agreement with their customers.
“As an attorney, I generally favor written agreements when my clients are providing a service of any type,” he says. “With a written agreement, it is less likely that misunderstandings or disputes will occur if the terms are laid out clearly and unambiguously.”
A carefully crafted service agreement for the document destruction industry can, among other things, help a business retain customers, limit liability and increase the value of the business when it is sold.
Bloom’s service agreement, for example, locks clients in to Shred Trust service for three years, after which the contract automatically renews. The contract can be terminated by either side with 90 days advance notice.
“There are good agreements and bad agreements and we’ve seen them all,” says McGuire, who represents owners in the sale of their businesses. “Those that are best in class are typically signing
customers to a term with an automatic renewal clause in the language of the contract.”
A typical agreement would be for a term of one year with an automatic renewal and requiring 90 days advanced notice prior to the renewal date to terminate, McGuire says.
“With the auto renewal clause, for the most part shred companies are set for life in a way,” he says. “It takes a lot of advanced planning to switch vendors. You’re making it inconvenient for them to initiate a switch, giving you an edge over your competitors with customer retention.”
Bloom agrees, noting that most clients “are just very, very afraid of trying to walk away from a contract.
“Whether it’s a good contract or a bad contract, if you have a contract in place it just makes the relationship so much stronger,” he says. “They (customers) don’t want to deal with the hassle of possible legal entanglements.”
McGuire also recommends to his clients that they include an annual rate increase option in their service agreements.
“Industry players tend to be extremely scared of initiating annual rate increases,” he notes. “It’s been our experience that a large portion of the customer base will accept an annual rate increase
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within reason without any negative impact to the customer base. It’s an opportunity to increase your annual revenue by 3 1/2 percent to 5 percent among your existing customer base without marketing costs, which obviously adds value to a transaction in the future.”
That future transaction could be the sale of the business, which with service agreements in place would bring more value to the seller, McGuire says.
“It adds to the enterprise value of the business . . .” he explains. “Service agreements are viewed as a positive business practice performed by best-in-class service providers. Best-in-class service providers will always receive a higher valuation by buyers. Having a service contract in place is an important component of that.”
An important part of any such service agreement when it does come time to sell is to have a “consent to assign” provision.
“That is extremely important,” McGuire says, explaining that the provision would allow a seller to transfer the existing customer base to a new buyer.
“Buyers are looking for a good solid service agreement that does not contain restrictions or requirements to gain approval for assignment because they know that those customers are ‘sticky.’ They are protected under the agreement . . . there’s no opportunity for a major defection of customers.”
Brown, who describes himself as a “business
transaction attorney,” agrees that when drafting an agreement, service providers need to think ahead to the day when they might sell their business.
“You want these types of service agreements to be freely transferable to the purchaser,” says Brown, who has more than 30 years of legal experience. “So you want to make sure the shredding company has the right to assign the contract to any purchaser of the business.”
Limitation of liability is also another key factor to include in any agreement, McGuire, Brown and Bloom say.
“It’s unwise to take on an uncapped liability exposure in the event of a breach, or loss of customer information or damage to a customer’s property,” McGuire says.
“You want to spell out very clearly what that limitation might be,” Brown adds. “If you have a limitation of liability in an agreement that’s enforceable, then you’re going to reduce your risk. I always recommend to further back up that liability with appropriate insurance.”
Even with a limitation of liability, Bloom notes that “we’re such a litigious society you can get sued either way.
“But,” he adds, “It’s great to have that [agreement] in your back pocket. It’s like an ace up your sleeve.”
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Bloom says he pieced together his service agreement from other industries and from competitors, combining the best of each into his pact.
“I think that the industry contract that most companies use isn’t as strong as some of the contracts of other industries,” he says.
McGuire says document destruction companies commonly use a standardized service agreement from the National Association for Information Destruction (NAID) or from the waste industry.
Brown says it pays for business owners to use the services of an attorney in drafting their service agreements.
“I’m not a big fan of going on to a website and trying to download forms and do it yourself,” he says. “I truly believe that there are nuances, there are variations. It’s always going to be more useful for an attorney who knows the area to draft a document to provide the necessary protections to the client and to make it enforceable under local law.”
He notes that many owners of small businesses balk at spending money for legal advice but that having an attorney draw up an agreement can save money in the long run.
“In an effort to try to limit expenses or avoid them completely, they’ll try to do it themselves or not have a written agreement at all and just rely on a handshake deal,” Brown says. “If a problem arises at some point in the future, it could end up costing them a far greater amount than if they had made the initial investment [for legal advice].”
Having an attorney put together a service agreement should not be expensive, Brown adds. Attorneys can also often spot issues that a business owner isn’t necessarily going to see, he says, such as whether the company was formed in the right manner, if it has appropriate insurance, and the relationship between the owner and its employees or independent contractors.
“A good business lawyer is going to look at all these things for the client
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Service Contract Key Document for Document Destruction Firms
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rhonda: I don’t want to give you that. mike: Well, why not?rhonda: Because, you will just use it against me.mike: Why would I use that against you? That doesn’t make any sense.
Notice how Mike immediately tried to show Rhonda she was wrong? Mike should remember three important things:
People will• consider what you have to say; to the exact degree you demonstrate you understand their point of view.Great negotiators never argue with reasons; they argue the facts.•You never have to prove anyone wrong; you only have to prove yourself right.•
Here is how Mike might have handled it.
mike: Okay, Rhonda, in order to process this return, all I need to do is get a statement from you on what was wrong with the product or how it didn’t meet your expectations.
rhonda: I don’t want to give you that.
mike: Okay, can I ask why?
rhonda: Because, you will just use it against me.
mike: You know, Rhonda, if you don’t want to give me a statement about the product and why you’re returning it because you are concerned that I am going to use it against you, then I can certainly understand why you don’t want to give me a statement. That makes sense. I just want to let you know that the purpose of the statement is not to use the information against you. In fact, the reason I need the statement is to document the file to be sure that you do get a full refund and that you do get everything that you are entitled to. If you’ll give me a statement of facts, I will be able to process your return and you can be on your way.
Did you see how Mike took the time to acknowledge Rhonda’s reasons and skillfully return to the facts at hand?
Notice what Mike did in this case. He completely reduced Rhonda’s uncooperativeness by acknowledging it. Notice he did not agree with it, and notice he did not say, “yes, you are right.” He simply acknowledged where Rhonda was coming from. He called the customer a reasonable person. She’s reasonable for the way she feels. The fact that Mike took the time to tell this customer that she was a reasonable person for the way she feels is going to allow her to change her mind (which, of course, is all he wanted in the first place).
Stop trying to prove other people wrong, and stick to proving yourself right. It’s easier and a whole lot less stressful.
ABOUT THE AUTHOR:Carl Van is a Professional Public Speaker and business course designer. He is President & CEO of his own international training company. He trains and speaks to audiences all over the United States and Canada on soft skills such as Customer Service and Branding, Negotiations, Time Management and of course Gaining Cooperation. His new book, “Gaining Cooperation” is available on Amazon.com. Mr. Van is available for Guest Speaking and can be reached at 504-393-4570 or www.CarlVan.org or www.facebook.com/carlvanspeaker.
BY CARL VAN
Gaining Cooperation:Three maxims for Successful
Negotiation
“Everything you know is wrong. Black is white, up is down and short is long. And everything you thought was just so important… doesn’t really matter anymore.” “Everything You Know is Wrong.” – Weird Al Yankovic
If you are a fan of the show “Seinfeld,” you will remember an episode where George concludes that every single decision he made and every single approach he took in his past, was wrong. Every gut instinct he had always led him to disaster. So he incorporates a new philosophy: if every single thing that he had ever done was wrong, then the opposite must be right. And from that point forward, instead of doing what he would normally do, he does the exact opposite. Of course things work out very well for him. He gets a new girlfriend, he gets a new job, and his life becomes quite blissful (for a while).
Sometimes, in order to be persuasive, businesspeople tend to argue and try to prove others wrong, which is the exact opposite of what you should do. In fact, those arguing will be very detailed in pointing out why other’s beliefs are wrong so they give in. This usually doesn’t work very well, and then you just have a battle on your hands that isn’t needed.
NEGOTIATION MAXIM #1: “Great negotiators never argue with reasons; they argue the facts.”
What are you negotiating? Negotiations are for cooperation. And when negotiating for cooperation, the very best negotiators never argue with
people’s reasons; they argue with facts. When you argue with someone’s reasons, you are trying to prove them wrong.
In fact, most people believe in order to convince someone you’re right, you have to show them that they are wrong. It is just a natural response. It’s the old “let me show you that you are wrong so that you will see that I am right” impulse.
NEGOTIATION MAXIM #2: “You never have to prove anyone wrong; you only have to prove yourself right.”
So what do great negotiators do with people’s reason if not argue? Well, like George, try the opposite.The opposite of proving someone wrong is to simply acknowledge where
they are coming from. Effective communicators use the tool of acknowledgement to gain cooperation and save time.
In the event you are trying to be persuasive and gain someone’s cooperation, use these three steps:
1. Ask why they don’t want to cooperate 2. Acknowledge their reasons as valid 3. Return to the facts
NEGOTIATION MAXIM #3: “People will consider what you have to say, to the exact degree you demonstrate you understand their point of view.”
Here is an example. Mike works at a department store in the customer service area. His main job is to deal with people who want to get a refund for a
product that did not meet their expectations or did not work properly. Rhonda is a recent customer who has brought in an item to return.
mike: Okay, Rhonda, in order to process this return, all I need to do is get a statement from you on what was wrong with the product or how it didn’t meet your expectations.
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Every company is trying to use Facebook in an attempt to move their business forward and stay connected to their customers in this fast paced world. Why are some companies more successful at this than others? Content is the key to staying in touch with your customers and
keeping them informed. The content, however, must be a rich mix of information, education, humor and fun. Use the HICCUP approach to make your Facebook page more successful:
HUMOR
Humor allows your audience to come away with a warm fuzzy feeling and a friendly attachment to your message. It doesn’t have to be industry specific, although it can be. You can do viral searches on YouTube and/
or sites that plug social media. Always watch a video all the way through before posting as you don’t want it to include any profanity or other unmentionables. Remember video is king. Written blogs are being trumped by the clever, colorful and often fun video blogs.
INTERACTIVE QUESTIONS
Don’t be afraid to ask open-ended questions to your group. For example, if you are a financial advisor, you may want to ask, “what is your biggest concern with the down economy?” The purpose here is to begin the
conversation. People posting their answers will create a community buzz. Letting the responses unfold naturally also gives you a marketing advantage. The financial advisor can track the concerns and create future training or webinars around his/her consumer’s needs.
CONTENT
If you don’t provide a myriad of interesting topics, information and current trends, current customers as well as future customers simply go away. Clicking “Unlike” on Facebook is just as easy as clicking “Like.” Smart, clever and
challenging content will keep your audience waiting for more. With most companies having a presence on Facebook, competition will become fierce and you have to stand out.
CURRENT EVENTS
If you haven’t done so already, get plugged in to all online media, and/or trade publications online. When something interesting pops up, pass it along for other people’s knowledge. If something political occurs that impacts your
industry for example, pass it along. Never make a personal judgment about the event. Let your community unfold. Use Google Alerts in which you can program in key words to notify you of events and news feeds that pertain to your industry. Use a program like Hootsuite to consolidate and Tweet events out to all of your feeds and accounts at one time.
UTILIZING INDUSTRY FACTS
Keep your followers abreast of changes in your particular industry and relate them back to your own business. For example, if you are involved in document shredding and/or records storage and there are some new privacy
laws around the corner, keep people aware by posting them on Facebook.
PROMOS and SPECIALS
Mention specials, promotions, new products and services. You can get creative here and run a coupon or contest. Talk about new employees, business awards or articles written by your staff. You can drive traffic
to your business and services by using this concept. The one caution is that you shouldn’t overuse Facebook to market to your customer base. They can grow tired of it and quickly choose “Unlike” on your page, causing you to lose a potential client.
To be successful, all categories should be represented on your posts daily. If you personally don’t have time, assign this process to an employee or virtual assistant. Give them these rules for your industry and explain the process. Generally creative, idea-generating minds are the best individuals suited for this task. If you follow this model for promoting your business on Facebook, customers will stick around to see what you post next. As the Facebook community grows, we will all have to fight for the attention of the consumer.
ABOUT THE AUTHORGenae Girard is a speaker, author and entrepreneur. She is the founder of www.BeyondtheBoobieTrap.com, an online social media tribe of over 20,200 breast cancer survivors and regularly speaks on the topics of women in leadership, building a tribe and social media. She is also the author of “Off the Rack: Chronicles of a Thirty-Something, Single, Breast Cancer Survivor.” For inquiries, e-mail: [email protected] or call 512-796-1618. www.chachkagroup.com
HICCUP Your Way Past Competitors
onBY GENAE GIRARD
Security Shredding & Storage News. July / August 2011
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Info Request #101
— not to generate more work for the lawyer — but out of concern to make sure the client’s business is run properly,” Brown says.
McGuire says document destruction companies that deal with large corporations or large national accounts may be faced with having to sign agreements from those firms and advises shredding companies to carefully review those documents.
“Many of those agreements have assignment restrictions, have uncapped liability and indemnity clauses built into them and you really need to tread carefully when signing a customer’s agreement as opposed to your own agreement,” he warns. “They’re typically written for all vendors that provide products and services. A lot of language in there will prevent you from assigning that agreement to a third party or to an acquirer without written consent. More importantly, you’re signing on for some potentially vicious liability exposures when liability and indemnity exposures are uncapped. You need to review those agreements carefully.”
Bloom, for one, says he can’t imagine running his business without service agreements. “Seeing how competitive the industry is and how tough it is to take away clients that are in contract
with other companies almost makes me wonder how could any company in the industry not have a contract in place, whether it’s going after a small accounting company or a Fortune 500 firm,” he says. “It’s just a smarter way to do business in such a litigious society.”
“At the end of day, a service agreement makes sense for a document destruction company,” McGuire adds. “It protects the customer base, limits their liability, it clearly defines terms and conditions of the service and it adds enterprise value to the business in the eyes of a potential buyer.”
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Washington State E-cycling is Seen as Major Success and Role Model
Olympia, WA – E-Cycle Washington has in its two-and-a-half year history recycled more than 100 million pounds of
consumer electronics, says the Washington State Department of Ecology. The program is seen as a nationally recognized effort and huge success. TVs make up the majority, 62%, as flat-screen technology is adopted. The initiative is funded by manufacturers of the electronics equipment and is free to consumers. John Friedrick is executive director of the manufacturers’ organization, which is called the Washington Materials Management and Financing Authority.
The Washington Department of Ecology’s director, Ted Sturdevant, credited electronics manufacturers for providing a convenient and efficient collection system. Washingtonians recycle electronics at an annual rate of 5.9 pounds per person, but Sturdevant hopes to improve that rate by increasing public awareness. E-Cycle Washington now includes tablet computers and electronic book readers.
Most of the electronics are recycled domestically, and the Northwest Product Stewardship Council says that processors in Washington State reported hiring 79 new employees due to the E-Cycle program. There are more than 250 E-Cycle Washington collection sites and services across the state. Go to www.ecyclewashington.org for more.
Survey: 76% of IT Pros Don’t Trust Personal Health Data Security
San Fransico, CA – nCircle has annouced the results of its nCircle 2011 Information Security and Healthcare Survey. The
company surveyed 544 respondents in the IT security industry, including senior management, IT operations, security professionals and risk and audit managers. The survey found that, in spite of HIPAA and HITECH initiatives, 76% of respondents do not feel that their personal healthcare information is any more secure than it was in 2010.
“The increased collection and storage of electronic personal health information (ePHI) has definitely made many IT security professionals nervous,” commented Elizabeth Ireland, vice president of Marketing for nCircle. “IT security professionals believe this trend should be accompanied by increased security in healthcare organizations, but so far they are not confident their ePHI is adequately protected.”
Ireland also noted: “Consumers are beginning to realize that recovering from a healthcare information breach is difficult. If someone steals your credit card number, your credit card company will help cover your losses and issue you a new one. However, there is no easy recovery process for lost healthcare data.” To see the complete study, go to www.ncircle.com/index.php?s=resources_surveys_Survey-healthcare-2011.
Service Contract Key Document for Document Destruction Firms
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In the News
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GAO Audits Fed Agency Security With Social Media Use
Washington, DC – The Government Accountability Office is asking 23 major federal agencies to develop and implement social media policies and procedures to deal with situations involving records management, privacy and security, and a recent audit looked at their progress, reports
govinfosecurity.com. “Without establishing guidance and assessing risks specific to social media, agencies cannot be assured that they are adequately meeting their responsibilities to manage and preserve federal records, protect the privacy of personal information, and secure federal systems and information against threats,” said Gregory Wilshusen, GAO director of information security issues, in a 90-page report.
President Barack Obama has encouraged use of social media so agencies can communicate with their constituencies in two-way conversation. Still, Wilshusen says, social media pose risks to the protection of personal and government information.
According to the audit: 12 of the 23 agencies have developed and issued guidelines for processes and policies for identifying and managing records generated by use of social media and record-keeping responsibilities.
12 agencies have updated their privacy policies to describe whether they use personal information made available through social media, and eight conducted and documented privacy impact assessments to identify potential privacy risks that may exist in using social media.
7 agencies identified and documented security risks, such as the potential for an attacker to use social media to collect information and launch attacks against federal information systems.
GAO says some agencies said that there was no need to have policies or procedures for social media, because these are addressed in existing policies, but congressional investigators disagreed.
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Sonoco Shoosmith Opens SC Recycling Center
Hartsville, SC – Sonoco Recycling, Inc., a wholly owned subsidiary of Sonoco and Shoosmith Brothers Inc., has opened The
Recycling Center, a landfill diversion facility that will be operated by Sonoco Recycling at the Shoosmith Brothers landfill in Chester, VA.
The Recycling Center will handle mixed material loads for recycling. With the new recycling facility, commercial and industrial customers will now be able to recycle unsorted and mixed loads that previously would have gone to landfills. The facility will sort and process items such as mixed paper, metal and plastics. Reclaimed materials will be linked to other end users. Recovered paper, for instance, will go to Sonoco’s Richmond paper mill only 12 miles away, lowering the facility’s carbon footprint and offering a secure source of supply.
“This new recycling facility is one of the first to be constructed at a landfill with the primary mission of diverting waste destined for land disposal,” said Jim Brown, vice president, Sonoco Recycling. “We are capturing materials that previously held no value for customers and returning them to the manufacturing stream to make products that consumers use every day.”
“Few facilities exist to accept unsorted industrial and commercial waste destined for landfills,” said Fletcher Kelly, vice president of Shoosmith Brothers Inc. “By recovering and repurposing this waste to alternative end uses, we’re not only generating additional revenue, but lengthening the life of our landfills.” The recycling facility, operated by Sonoco Recycling on behalf of Shoosmith Brothers, will serve commercial and industrial customers in the Greater Richmond area as well as regionally. As diversion efforts expand, the economic impact of the facility will be visible in various ways, including the ultimate creation of up to a 20 percent increase in new jobs.
E-waste Legislation Taking Off in States
Special report – Both North Carolina and South Carolina have recently passed laws that mandate the recycling of tossed electronic devices, joining a burgeoning list of state and local governments that have adopted such recycling laws, reports huffingtonpost.com. California was one of the first
to require e-waste recycling, but loopholes allowed for export to other countries. Recyclers assure e-waste is not sent overseas or to domestic prisons. Washington, Oregon and Minnesota set specific recycling goals for product manufacturers, seen as a very positive step, according to the Electronics TakeBack Coalition in San Francisco. But states that do not set such goals, such as Texas and Virginia, have less success.
The Electronics TakeBack Coalition sees the matter as a business development one, creating new jobs in the recycling industry domestically. Also, the matter being recycled is a valuable material, not a waste product that can be used without further use of extraction technology.
E-waste is the fastest-growing category of municipal waste in the U.S., with 80% ending up in landfills, according to the EPA, and from 50 to 80% of the rest is exported to China, India and other Asian and African countries, exposing people handling e-waste and those living nearby to danger as it adds high levels of chemicals to the environment. Over 70 countries have agreed to the Basel Convention, which prohibits developed countries from sending hazardous wastes to developing countries, but the U.S. has not yet signed on.
Security Shredding & Storage News. July / August 2011
In the News
11
Bipartisan Senate Bill Would Promote Domestic Recycling of E-waste
Washington, DC – According to thestatecolumn.com, a Senate bill was proposed in a bipartisan effort to restrict the export of electronic waste, help boost the domestic recycling industry, and support efforts
to recover rare earth materials found in electronics. Sponsors include Sen. Sheldon Whitehouse (D-RI), Sen. Lisa Murkowski (R-AK) and Sen. Sherrod Brown (D-OH).
“With more and more Americans relying on new technologies and generating a growing amount of electronic waste each year, we must take steps to properly dispose of this material,” said Whitehouse. “This legislation will crack down on the dumping of electronic waste on developing countries, protect American consumers from counterfeit schemes and identity theft, and support the growth of e-waste recycling jobs in Rhode Island and across the country.”
“We can and should handle our electronic waste in a more responsible way. This legislation addresses where these materials can be sent, helping to create investment opportunities for recycling,” Murkowski said. “The U.S. is dangerously reliant on foreign supplies for minerals that make up the building blocks of our economy, but recycling can help reverse that trend. This bill and others will help us lead on environmental stewardship, technological innovation, and developing a more stable supply of critical minerals.”
“This bill will foster domestic innovation and allow Ohio businesses, like Redemtech, to create good-paying, clean energy jobs,” Brown said. “By addressing environmental threats that endanger public health and reducing the number of counterfeit electronics in the U.S., we can spur economic development in Ohio.”
The legislation would put a crimp on fraudulently goods resold to the U.S. military and hamper identity theft. It would also boost business for companies recycling in the United States who can’t compete with the lower costs of exporting waste to unregulated recyclers. A Rare Earth Materials Recycling Research Initiative at the Department of Energy would lead research into the recovery of rare earth materials.
The legislation, like the House’s bill, is supported by Hewlett Packard, Dell, Apple, Samsung, Best Buy, the Electronics TakeBack Coalition, and 29 recyclers representing 74 recycling operations in 34 states.
HIPAA the Biggest Challenge to IT Security, Says Ipswitch Survey
Lexington, MA – An Ipswitch survey of 100,000 network administrators found that of all information security regulations, 38.2% said that HIPAA was the most difficult to implement, followed by the Sarbanes-Oxley
Act, at 29.3%, and the Federal Information Security Management Act, at 9.3%. HIPAA, enacted by Congress in 1996 to protect patients’ medical information and confidentiality, was named by almost 40% of respondents as their most difficult compliance regulation. The Sarbanes-Oxley Act, which states that IT departments must save all electronic records and messages for ‘not less than five years,’ placed second with nearly 30% naming it the most challenging regulation. Other results were Basel III at 8.2% and all others at 15%.
Increasingly hefty fines and harsh penalties are imposed upon organizations that are shown to not be in compliance with IT regulations. Recently, a New England-based hospital paid a $1 million settlement for potential violations of HIPAA regulations. With data breach headlines appearing in the news regularly, organizations are under tremendous pressure to keep their sensitive information secure. Along with fines and penalties, loss of credibility and damage to a company’s brand are also among the consequences.
“Enterprises, financial institutions and health care providers are under intense scrutiny to protect the confidential information of their patients and clients,” said Ennio Carboni, president of Ipswitch Inc.’s Network Management Division. “Regulations are updated regularly, as are the hackers’ and thieves’ methods of exploiting them. Staying up-to-date and within compliance is no easy task. Transparency into the state of a network is paramount to making sure that the infrastructure is also supporting an organization’s effort to remain compliant.”
For more information regarding this survey or for complete results, please visit www.whatsupgold.com.
House Subcommittee Approves Secure and Fortify Electronic Data Act
Washington, DC – According to scmagazineus.com, a national data breach notification law, the Secure and Fortify Electronic Data Act, passed the House Subcommittee on Commerce, Manufacturing
and Trade recently, but like many similar proposals, it faces strong opposition. Sponsored by Rep. Mary Bono Mack (R-CA), it would pre-empt state data breach notification laws and make affected companies inform the Federal Trade Commission and individuals whose personal information was lost or stolen within 48 hours after determination. Businesses that own or maintain personal data would have to have a security policy, information security manager, and process for minimizing data no longer needed. Breached entities would be required to notify the FTC “without unreasonable delay,” and notification to affected individuals must begin no later than 45 days after discovering the breach unless the company receives a written request by law enforcement to delay notification.
Rep. Henry Waxman (D-CA) found many loopholes in the bill; the legislation would not require reporting the loss of payroll records, data recorded in smartphones, or records of consumer purchases, and financial account numbers would not be covered unless a user’s password, name, address or phone number was also stolen. “A Social Security number or a credit card number is not personal information under this bill unless it is combined with other information,” Waxman said. “This bill eliminates scores of state consumer protections without putting equivalent or stronger federal protections in their place.”
Republicans felt the bill would establish uniform standards for data security and breach notification, but Democrats proposed amendments, all rejected, that would increase the kinds of personal information covered and keep the legislation from pre-empting more stringent state breach notification laws. The SAFE Data Act will now move to the full House Energy and Commerce Committee.
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Security Shredding & Storage News. July / August 2011
In the News
12
Vecoplan Names LaGoe New Project Engineer / Manager
Mike LaGoe recently joined Vecoplan, LLC as a Project Engineer / Manager. LaGoe, formerly Engineering Manager
at a leading manufacturer of air pollution control systems, brings 12 years of practical experience to his new position at Vecoplan.
LaGoe’s responsibi l i t ies wi l l include coordinating the design and development of large scale, turnkey systems for the processing and production of Alternative Fuels from Biomass and Waste, as well as general Waste Treatment systems. In order to ensure continuous quality control, he will also oversee the manufacture and implementation of his projects once the engineering phase has been completed. “The rapid growth that we’ve experienced, especially in the design of large integrated systems, has made it necessary for us to expand both our facilities and our personnel. We are fortunate to have someone of Mike’s caliber and expertise, join our engineering team here at Vecoplan,” states Gary Kolbet, VP of Engineering at Vecoplan, LLC
Commodity Resource & Environmental, Inc (CRE) Attains NAID Certification
Commodity Resource & Environmental, Inc., a leading national silver refiner, has been awarded AAA Certification from the
National Association of Information Destruction (NAID). The certification endorsements include the destruction of printed media as well as hard drive destruction.
According to Larry DeWitt, President/CEO of CRE, “When CRE was founded in 1980, customers focused primarily on the silver values from their surplus films but paid little attention to the destruction of the paper radiology records associated with the silver recovery from their outdated X-Ray film. However, with the development and enforcement of HIPAA regulations for medical records, it became apparent that our customer base needed more assurance of proper destruction for these records. To address this issue, CRE purchased shredders and balers in 2006 and is extremely pleased to have moved another giant step forward with our recent AAA-NAID Certification.”
CRE refines over 24,000,000 pounds of scrap X-Rays and associated radiology documents for silver recovery and destruction annually. CRE’s principle location is in Burbank CA, which serves as the Company headquarters. CRE’s silver refinery occupies 5 acres in Mojave, CA.
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Fed, State And Now County Lawmakers Addressing E-Waste Exports
San Jose, CA – While only the federal government can directly control international trade, in what is considered a
first in the nation, Santa Clara County supervisors in California have passed a county law that electronic waste cannot be exported for recycling, reports mercurynews.com. It mandated that e-waste must be shipped through a recycler certified by e-Steward. Three state-approved e-waste recyclers now operate in the county and are recognized as e-Stewards. E-waste recyclers now get California state funds for recycling TVs, laptops and monitors, but not keyboards, phones, stereos and appliances.
The county law is only enjoined in unincorporated areas, but cities such as Palo Alto and San Jose are working on similar legislation. While states and cities do not have the right to ban exports, federal legislation would create a uniform standard. The county move is seen as a way to get businesses behind recycling rather than as a punitive measure.
Sarbanes Wants USEPA to Give Grants for E-Recycling Research
Baltimore, MD – The baltimoresun.com reports that Rep. John Sarbanes (D-MD) is advocating giving federal agencies $60
million over the next three years to promote recycling of electronic devices such as computers. While used electronics now represent about 2% of solid waste, it is a growing problem. Sarbanes, who serves on the House Science, Space and Technology Committee, says that there is a large national security element to the problem, and his bill would authorize the EPA to give grants for research on e-recycling as well as exploring barriers to e-recycling. A similar measure last year passed the House but was rejected in the Senate. Other Democratic Representatives hope to ban the export of some e-waste.
President Barack Obama has created a task force to look for ways that federal agencies can best dispose of superannuated technologies. The Maryland General Assembly requires manufacturers of problematic certain devices to pay for the costs of recycling programs, but differing approaches in the 25 states with e-waste laws are confusing and a national plan is being sought.
AccuShred Buys Metro Secure Shred
Toledo, OH – AccuShred has acquired Metro Secure Shred, a mobile document shredding company based in Temperance, Michigan.
According to the company, the acquisition makes AccuShred one of the largest privately-held information destruction companies in Northwest Ohio and Southeast Michigan.
AccuShred president Nate Segall cited the additional service capacity his company gains as the most important benefit of the acquisition. “By adding Metro Secure Shred’s shredding trucks, staff and customers to our existing organization, we can continue to enhance our service levels and stay ahead of the increasing demand for information destruction services.” Mark Seeger, president of Metro Secure Shred, will join AccuShred as an information security professional.
Metro Secure Shred’s customers, including the Toledo Police Department and General Motors Powertrain, were deemed to be a strong fit with AccuShred. “As demand for information destruction grows, so too will the requirements for experience and professionalism,” said Segall. “We think bringing Metro Secure Shred into the AccuShred family raises the bar for service excellence and expertise in Northwest Ohio and Southeast Michigan.”
NY Lawyer Tells Texans US a Patchwork of Privacy Laws
Dallas – Lisa Sotto, a New York-based partner at the law firm Hunton & Williams and head of the firm’s global privacy and information
management group, said in an interview with the dallas business Journal that the United States is “still feeling its way out on how to regulate privacy matters, making it difficult for companies to comply with the law here.” Sotto, in Dallas for a presentation for the Texas Bar, was quoted by the paper as saying, “What we have is, at best, a mélange of laws imposed in many cases on the same data sets. It’s brutal for a company.” Information privacy law is a new area, she went on, making regulation a challenge. The United States regulates privacy matters differently for the differing industries, so that financial regulation differs from that of health care providers or online data collection. “The U.S. is a patchwork quilt,” Sotto concluded in the interview.
Security Shredding & Storage News. July / August 2011
In the News
13
House Introduces RERA Act on E-Waste Exportation
Washington, DC – Rep. Gene Green (D-TX) and Rep. Mike Thompson (D-CA) have introduced H.R. 2284, The
Responsible Electronics Recycling Act of 2011, to prohibit the exportation of some electronics whose improper disposal may create environmental, health, or national security risks, reports texasinsider.org. H.R. 2284 has bipartisan support with cosponsors, Rep. Steven LaTourette (R-OH) and Rep. Lee Terry (R-NE). Sens, Sheldon Whitehouse [D-RI], Sherrod Brown [D-OH], and Lisa Murkowski [R-AK] have introduced a companion bill in the Senate.
“E-waste is the fastest growing waste stream in the United States, and it can pose a serious problem in that most e-waste contains toxic chemicals which present environmental and health concerns when not properly handled,” said Rep. Green. “As the ranking member on the House Energy and Commerce Environment and Economy Subcommittee, I look forward to working with the majority in the House to pass this bill, which successfully addresses this growing issue.”
Rep. Thompson says, “Each year, millions of tons of electronics equipment are discarded in the U.S. and shipped to developing nations for unsafe salvage and recovery,” said Rep. Thompson. “By carefully regulating the export of e-waste, this bipartisan legislation takes concrete steps to address a growing environmental and health crisis while creating good-paying recycling jobs here in the U.S.”
H.R. 2284 creates a new section of the Resource Conservation and Recovery Act with EPA-set minimum levels for certain toxic substances. Tested and working equipment can be exported to promote reuse, along with products exported for warranty repair or due to recall. Importing countries must give their consent to accept exempted exports. This approach echoes policies adopted by nations via international treaties, such as the Basel Convention and Basel Ban Amendment.
It is hoped that RERA will also create US jobs by allowing domestic recyclers to override overseas recycling facilities with little environmental oversight.
“This is the most important step our federal government can take to solve the e-waste problem – to close the door on e-waste dumping on developing countries,” said Barbara Kyle, National Coordinator of the Electronics TakeBack Coalition, a national environmental coalition which promotes responsible recycling of e-waste. “It will bring recycling jobs back to the U.S.”
H.R. 2284 also backs a research program at the Department of Energy to help assess the recycling and recovery of rare earth metals from electronics.
The legislation, as is that in the Senate, is backed by the recycling industry, including Hewlett Packard, Dell, Apple, Samsung, Best Buy, and 29 recyclers representing 74 recycling operations in 34 states.
Document Security Not at All Assured
New York – business-journal.com reports that a Shred-It survey has found that while keeping business information secure is important to 96.2% of US businesses, some 27.3% of survey respondents have never audited their security measures. Some 30.2% had done a review in the past half year,
but another quarter, 25.1%, had never reviewed their processes. Information security audits were done by about two-thirds, 67.3%, to proactively protect businesses, while 30.8% used them for compliance, to avoid penalties.
Although 78.6% said they knew of legal requirements for storing, keeping and disposing confidential data, 31.1% of respondents said they do not train staff on the company’s information-security procedures and protocols, and 35.5% have no protocol in place for storing and disposing confidential data.
Shred-It has tips for small businesses to secure their business information:Make sure you have formal information security policies in place; train your employees to know the •policies well and follow them rigorously. Eliminate any potential risks by introducing a “shred-all” policy, when all unneeded documents are •fully destroyed on a regular basis. Conduct periodic information security audits. Don’t overlook hard drives on computers or photocopiers; erasing your hard drive does not mean that •the data is gone. Physical hard drive destruction is proven to be the only 100% secure way to destroy data from hard drives. Hire a reliable vendor that is well-informed and keeps you compliant with pertinent legislation, training •requirements etc.
Security Shredding & Storage News. July / August 201114
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Vecop lan now o f f e r s i t s c u s t o m e r s
integrated controls, including individual control panels and plant-wide centralized processing controls. VIC customers include machinery importers needing control panels that meet all applicable North American codes and regulations, and OEMs looking to add some touch screen “sales dazzle” to their machine controls.
VIC offers construction and custom programming of control panels that meet or exceed UL 508Δ, NEC, OSHA, and Hazardous Location Designations. VIC designs machine specific PLCs and HMIs with the ability to integrate Ethernet, Devicenet and other plant wide networks. VIC also provides system-wide processing controls, including automated sensing, monitoring, and communication to optimize material processing rates throughout a production line.
For more information call 336-861-6070 or visit www.vecoplanllc.com.
Jorgensen Offers Feeder Conveyors for Most Material Applications
Jo r g e n s e n Conveyors designs and manufactures
a line of process feeder conveyors for mos t m a t e r i a l r e c y c l i n g applications. Product solutions include hinged steel belt conveyors, Z-Pan metal belt conveyors, combo meta l cha in rubber belt conveyors, slider bed and troughing idler conveyors.
The conveyors and systems are designed for a wide variety of recycling operations handling paper, corrugated, metal, rubber, plastics, wood, construction, electronic and municipal waste as well as co-mingled materials. They are also integrated with bailing, shredding, compacting, sorting, crushing, mixing and incinerating processes.
Frame construction is open and modular, built in five and ten foot bolt together sections. Frame sections are interchangeable. Belt tracking is made from durable ASCE 30lb. rail. Modular bolt-on side skirting. Guarding per industry standard requirements.
For more information call 800-325-7705or visit www.jorgensenconveyors.com.
UltraShred Adds Proprietary Grabber Bin Lift System
Al w a y s innovating to meet industry
market demand for easy to use mobile shredding equipment, UltraShred has made standard on all trucks a grabber bin l i ft system.
Designed to allow mobile shredders to lift any container without damaging i t , the UltraShred proprietary bin lift system also extends the life of the containers by gently hugging them with rubber grippers.
Using this simple one touch system, it can lift containers up to 96 gallons and allows the operator to regulate the lift speed. This grabber provides users with the convenience of lifting any bin type; requires minimal maintenance; and is durable enough to handle any shredders needs.
For more information on ultraShred’s full line of 100%
american-made document destruction equipment, contact ultraShred Sales & Service, llC at 877-468-5872; email at
[email protected] or visit www.ultraShred.com.
Shred-Tech Introduces the MDS-20GT
S hred-Tech, Cambridge, Ontario, has added the MDS-20GT to their collection of document
destruction trucks. Joe Roberto, Shred-Tech Vice President of Sales and
Marketing, says “We’re excited about this truck because we’ve created a product that has very high performance at an amazing price. I think it presents a tremendous value, plus the fact that it is available on both CDL and non-CDL chassis, makes this truck attractive to a wide variety of customers.” The MDS-20GT offers a payload of up to 14,000 pounds and a throughput of up to 3,500 pounds per hour.
Roberto adds “The shredder in the MDS-20GT is our proven ST-15H shredder, so even though this is a new model with excellent new features it’s a proven product and creates a great value proposition for our customers.”
For more information visit www.shred-tech.com or call 1-800-465-3214.
Security Shredding & Storage News. July / August 2011
In the News
15
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Mass:Vecoplan shreds more than paper. Whether Plant Based or Mobile, Vecoplan’s complete shredding systems allow you to offer services others can’t. Shred hard drives, audio/video cassettes, CDs, DVDs, laptops, credit cards, film, plastics, textiles, 3-ring binders, cardboard, large paper rolls, entire bankers boxes of documents, or any other type of paper. In short, complete “information” destruction regardless of what form the information is in.Shred more – Make more!
Destruction:Vecoplan delivers particle size. Particle size delivers customers! As the document destruction market matures, more and more customers are demanding a smaller, more secure shredded particle size. With a Vecoplan shredder, you can deliver it. A quick and easy, 10 minute, screen change allows you to meet the most stringent particle size requirements of customers, like government agencies, that demand it and sell it to those customers that aren’t yet aware that they need it!
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Shred-it Acquires Brink’s Document Destruction
Shred-it, one of the leading information security companies providing document destruction services, announced today that it has acquired the assets of Brink’s Document Destruction (“BDD”), a division of
Brink’s, Incorporated (Brink’s”). BDD operated an onsite document destruction company providing premium security-related services for a range of customers including banks, retailers, commercial and governmental customers. The acquisition applies to all of BDD’s U.S. operations, which will be transitioned to Shred-it’s existing operations in each market.
Shred-it President and CEO Vince De Palma states, “this acquisition supports our corporate growth strategy, and will significantly enhance our presence and density in key US markets including Boston, Chicago, Dallas and New York. Further, it will allow us to leverage existing infrastructure to better serve and expand our customer base.”
Waste Management Makes Acquistion
Waste Management Inc. recently announced the acquisition of Access Computer Products Inc., a leading provider of cell phone, ink and toner cartridge, and consumer electronics reverse logistics,
remarketing, and recycling services, through its subsidiary WM Recycle America, L.L.C.
In addition, WM also acquired Mordell, LLC, Access’ re-commerce partner responsible for refurbishing and selling used computer equipment obtained through Access and other third party suppliers.
According to Waste Management, this acquisition will help Waste Management to achieve its target of tripling the amount of material it recycles to 20 million tons by 2020. The terms of the deal were not disclosed.
Security Shredding & Storage News. July / August 2011
In the News
16
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Feds Debut E-Waste Program, But Only Domestically
Washington, DC – The Obama administration and the electronics industry have debuted a national e-waste initiative to promote U.S. e-waste recycling as well as to grow domestic recycling jobs, reports
miamiherald.com. The strategy also included an emphasis on designing products that can be easily recycled. Major manufacturers are behind the move, and the Consumer Electronics Association is also backing it.
“We look forward to continuing our dialog with EPA, GSA and CEQ in the hopes of fortifying a robust public-private partnership that ensures consumers across our nation have ample opportunities to recycle electronics responsibly,” said Walter Alcorn, CEA vice president of environmental affairs and industry sustainability. “A formidable partnership is the best way to develop a national approach to eCycling that replaces the patchwork of costly and confusing state regulations.”
While environmental groups were largely positive, they say the initiative does not address exporting e-waste to developing countries. The Basel Action Network, which promotes an international strategy to prevent these exports, was uncomplimentary. “This report is a living contradiction,” said Jim Puckett, executive director of the BAN. “On the one hand it claims to promote responsible recycling and job creation here in the U.S., but then does nothing to prevent e-waste exporting, which squanders our critical metals resources, and poisons children abroad while exporting good recycling jobs from our country. This report shows why we need Congress to pass the Responsible Electronics Recycling Act, now under consideration in both the Senate and Congress, to truly address this issue.”
The federal government would: promote the development of more efficient and sustainable electronic products; direct federal agencies to buy, use, reuse and recycle their electronics responsibly; support recycling options and systems for American consumers, and strengthen America’s role in the international electronics stewardship arena.
In the meantime, both the House of Representatives and the Senate are working on e-waste export legislation.
Security Shredding & Storage News. July / August 2011 17
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In the News
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