January/February 2004
Recyclers wanted cranes designed for lifting and moving scrap—and material handlers emerged to meet that desire. Now, these relative newcomers are the dominant force in the scrap marketplace.
By Jim Fowler
In the past five years, the number of purpose-built material-handlers—machines built specifically for lifting and moving material—has increased dramatically in the scrap industry, and the future seems to be heading the purpose-built way. There are many reasons behind this trend—but first, a little background. Until the late 1960s, lattice-boom cable cranes ruled in scrap yards. These units, which could move around on crawler tracks, rail, even tires, were workhorses and saved scrap laborers from much of their former backbreaking labor.
Then came cranes with hydraulically powered booms, and material handling in the industry would never be the same. With hydraulics, productivity—or duty—cycles were reportedly three to four times faster than cable cranes. Plus, hydraulic machines were simpler to operate. This was an important factor as it became harder to find skilled cable-crane operators, who were a vanishing breed and who commanded a higher wage.
Cable cranes maintained—and continue to have—a presence in the industry, particularly in the Midwest and West Coast where many scrap plants were set up for rail-based cranes. In general, though, cable cranes are fading from the scrap scene, in part because they require a significant amount of maintenance for the rail and bed and in part because hydraulic cranes have steadily eroded their market share. Some rail-mounted cranes with hydraulic booms also remain in service, but they aren’t proliferating, one manufacturer points out.
In short, hydraulic units have gradually become the preferred cranes for scrap-handling tasks over the past 30-plus years. In the early going, scrap-handling cranes began life as earth-moving excavators that were simply modified for the scrap industry. While the modifications enabled hydraulic excavators to handle scrap more efficiently than cable cranes, it became apparent over the years that scrap processors needed a handler that was purpose-built for their needs.
This makes sense when you consider the significant differences between an excavator and a scrap-handling crane. For starters, the undercarriage of an excavator is long and narrow, while a material handler has a squarer undercarriage. The handler also requires a heavy-design undercarriage and strong swing ring for lifting heavy weights at long range. As one manufacturer points out, the upper- and undercarriage had to be redesigned for material handlers so that the uppercarriage could be mounted in the center of the undercarriage for balance and better lifting capacity.
Given these and many other considerations, crane manufacturers began offering machines specifically designed for lifting and moving scrap, generically calling them material handlers. These scrap-specific units have found a welcome audience among recyclers to the point where they are purchasing fewer converted excavators these days.
Material handlers are available with crawler tracks or with rubber tires, depending on the customer’s needs and operating conditions. The recent trend seems to be toward rubber-tire units, says one manufacturer, who notes that 15 years ago, nine out of 10 cranes he sold were crawlers. Today, he sells six or seven rubber-tire models compared with three or four crawlers. Rubber-tire handlers have gained favor, in part, because of their greater mobility. Also, they put less wear-and-tear on paved surfaces and can offer the same stability as crawler units thanks to their outriggers, which can be lowered for heavy-lifting tasks.
Even steel mills, which have historically been serviced by rail cranes, are switching to large-capacity rubber-tire handlers. Some mills have reportedly found that two hydraulics can do the work of six cable cranes. In sum, the productivity of the handlers is light years ahead, and they’re easier and less expensive to operate. Given the trend toward purpose-built material handlers, you could find yourself in the market for one in the near future. What factors should you keep in mind if or when that time comes? According to manufacturers interviewed for this article, two key points are: detail your needs—that is, what tasks will the machine handle?—and identify your operating costs. Here, we review these and other points to consider:
Rubber Tires or Crawler Tracks? One question to ask up front: Will the material handler be dedicated to feeding a piece of processing equipment such as a baler or shear, or will it need to be mobile to perform various tasks around the yard? The answer can dictate whether you want a crawler or rubber-tire unit.
Yet the answer isn’t always cut-and-dried. Even if you expect the handler to be dedicated to feeding one machine most of the time, one manufacturer says, you may find that you need the handler for other functions. In his view, rubber tires give you greater flexibility than crawler tracks to move the machine quickly to other places. As another manufacturer laments, in the old days, a yard worker could smoke two or three cigarettes waiting for the crawler crane to move to his location.
In addition to speed and mobility is the handler’s resale value. According to one manufacturer, there’s a strong demand for good, used rubber-tire scrap handlers but diminishing demand for used crawler machines. Are there any downsides to rubber tires? Obviously, you would need to replace the tires from time to time due to wear. Also, tires can be less effective than crawler tracks in unpaved scrap facilities that get extremely muddy, a manufacturer says.
Capacity and Reach. The capacity and reach you need in a material handler are important considerations that will determine the machine’s size, boom, and stick. Ask yourself: What will be the height of scrap piles the unit will be expected to reach? What size magnet and/or grapple will the handler operate? In general, the larger the magnet or grapple, the larger the handler you need. Also, different magnets and grapples can have significantly different power and hydraulic flow and pressure requirements, so you must know these details up front. One manufacturer, in fact, produces its own grapples to ensure that the handler’s hydraulic flow and pressure match the grapple’s specs.
As you consider lifting capacity and reach, keep in mind that bigger is not always better. In the old days, says one crane producer, 60 to 80 percent of the duty-cycle machines like cranes were often bigger than needed, and this philosophy carried over to hydraulics, which is not always a good thing. Nowadays, it’s a lot easier to select a handler that more closely matches the size of the tasks it will do—and sometimes that can mean buying a smaller machine.
“Believe it or not,” the above manufacturer notes, “I spend most of my time ‘down-selling’”—that is, persuading customers to consider a smaller machine. “With bigger machines come bigger costs, in many ways, including the increased cost of diesel fuel. Why spend it if you don’t need it?”
The overall trend, he emphasizes, is that smaller machines are getting the job done. They’re more productive because they cycle faster. Plus, with less weight to swing, they’re easier to stop and get moving in another direction.
Maintenance. Maintenance is another important consideration, of course. Given that the majority of scrap plants do their own maintenance, crane manufacturers have worked to make their units more maintenance-free as well as easier to tend when maintenance is required.
Some handlers, for instance, have centralized lubrication systems that automatically grease components as necessary. That can mean reduced downtime and greater productivity since the operator doesn’t have to stop production and manually grease pivotal points.
Many handlers are also designed so that all common maintenance points are easily accessible from the ground so service personnel don’t have to climb the machine. This makes servicing duties faster and safer.
Most material handlers reportedly have similar maintenance requirements. The first heavy maintenance—such as replacing hydraulic pumps, the undercarriage, or the diesel engine—generally occurs after 10,000 to 12,000 hours of operation, says one manufacturer. Such major maintenance isn’t always an economical investment, he says, noting that many processors replace a handler every three years to avoid these maintenance costs. At that point, they either sell the machine or move it from heavier to lighter duty.
Certainly, before you embark on major maintenance, you need to consider where you’ll be in a year, suggests another manufacturer. To explain, he offers the following scenario: When your handler has 15,000 hours of operation, you invest $25,000 in a new engine or, in 20,000 to 40,000 hours, a new undercarriage. But you still have the original pump and swing bearing, so you spend another $25,000 to replace those. Now you have unrecoverable expenses, so you must operate the machine another two or three years. Even then, you still won’t be able to recover the expenses in resale, he says.
Also, when weighing the pros and cons of major maintenance expenses, don’t forget that there can be significant tax advantages in buying a new unit. Section 101 of the Job Creation and Worker Assistance Act of 2002 allows businesses to take an additional 30-percent depreciation for their purchases of new equipment from Sept. 10, 2001, to Sept. 11, 2004. This bonus depreciation will reduce current-year tax liabilities and decrease the after-tax, cash-payback period for such capital investments. As one manufacturer asserts, “Many capital expenditures that weren’t feasible in recent years could be more attractive in 2002 through 2004 thanks to the reductions in after-tax, cash-payback periods offered by Section 101.”
Have your accountant or tax adviser determine if this added depreciation could work for your company, but don’t wait too long—you never know how long such tax advantages will last, particularly following an election year.
Cab Considerations. One distinguishing feature of a purpose-built material handler is that its cab can be elevated to give the operator a better view of the task at hand. Some handlers have fixed elevated cabs, while others have cabs that can be hydraulically raised up and down as needed. Among these movable cabs, you can choose one that moves straight up and down or one that moves forward and upward. When comparing a fixed elevated cab with a hydraulic elevating cab, consider potential safety hazards, suggests one crane expert. For example, crane operators face a falling risk when climbing the steps of a fixed elevated cab whose steps are wet or covered with ice and snow. A hydraulically elevating cab can reduce such risks since it sits lower on the machine and involves fewer steps to access, the manufacturer notes. An operator in a hydraulically elevating cab, however, must be sure to lower the cab when moving the handler around the yard. With some handlers able to travel up to 15 mph, it’s simply safer and more comfortable for the operator to lower the cab when moving the handler, especially at higher speeds.
Beyond the elevated-cab feature, material handlers offer a host of features and options designed to make the cab more comfortable for the operator, which translates to more productivity. Such features—many of which focus on ergonomic issues—include making the cab roomier, sizing up the cab windows to improve visibility, reducing noise and vibration inside the cab, easing entry into and exit from the cab, providing a more comfortable seat, improving operator controls, and offering “automotive-type” amenities such as air conditioning/heating, beverage holders, music players, and much more.
Other Safety Issues. Aside from safety issues related to the cab, keep in mind other safety questions such as:
- Is the unit’s high-voltage generator located a safe distance away from the operator?
- Does the handler have travel alarms that sound when it’s moving in any direction?
- Does the unit have load charts in the cab that tell the operator how much scrap can be lifted safely?
- Does the machine have safety valves on the hoses for the boom and stick? (This is critically important, says a manufacturer, because such valves keep the boom from falling and injuring someone if a hose breaks.)
- Can workers perform basic maintenance on the handler from the ground, or do they have to climb onto the machine?
Many material handlers also include a safety and production feature that prevents damage to the boom while it’s moving at full speed. The purpose is to keep the boom from hitting the mechanical stop at the end of its range. This is accomplished with a system that automatically stops the boom hydraulically before it reaches the end of the range. Such a system increases the life of the machine since there’s less impact on the structure. Also, the operator doesn’t have to worry about stopping the boom, so he can concentrate on increasing production. This feature also reportedly makes for a nonjarring, smoother movement that reduces vibration in the cab.
As a final safety note, each manufacturer interviewed stressed the importance of safety training for handler operators, noting that this training can be done at the processor’s site and/or at the manufacturer’s factory.
Controls. When it comes to control systems for material handlers, there seem to be two schools of thought—and you’ll have to consider which approach is right for you.
One approach is based on hydraulic controls, which decrease maintenance costs and the need for “high-level” maintenance expertise, one manufacturer says. In this case, he asserts, all the mechanic has to be able to do is read pressures to locate any problem with the machine.
The newer approach is based on electronic controls—essentially computers that regulate the flow and pressures between the diesel engine and the hydraulic pumps. As the manufacturer who advocates this approach points out, with electronic sensing, operational changes are immediate and prevent engine drag. This means the pumps and engine are always running at the proper level for maximum efficiency. Plus, he says, there’s the additional advantage of increased fuel economy and increased life of the engine and pumps.
Electronic controls also immediately indicate, for example, if the engine or hydraulic oil is overheating. Another advantage cited by this manufacturer is the ability to maintain a history of the machine’s operation. As he explains, you simply hook up a laptop to the handler, and it will tell you everything. Was the machine overheating? Was the oil pressure low? There’s no guesswork in determining what the machine was doing, and it keeps the operator honest because he knows the history is there. You have complete memory with no moving parts, and the electronic system is virtually maintenance-free, the manufacturer says.
Tool-Flexibility Systems. Many material handlers come with so-called tool-flexibility systems, which enable the machine to change attachments—such as magnets, grapples, or shears—quickly and easily, often without the operator having to leave the cab. This feature can save untold labor and downtime compared with manual changeovers. One manufacturer, for example, recalls walking into a scrap yard and seeing an employee beating a pin with a sledgehammer while changing an attachment. When the manufacturer left 90 minutes later, the employee was still hammering on the pin and the handler continued to sit idle.
Operating Costs. What does it cost to operate a material handler? And how do handlers from different manufacturers compare regarding their operating costs? The answers, of course, will vary from scrap plant to scrap plant based on each operation’s efficiency and overall management.
One manufacturer believes today’s scrap marketplace—now with its fourth or fifth generation of processors—has become quite sophisticated in buying and operating material handlers. Yet another crane maker says that most processors not only don’t know their operating costs, but when it comes to knowing, for instance, how much fuel their handlers consume an hour, 90 percent don’t know and, even more amazing, don’t care. In this case, ignorance isn’t bliss—it’s expensive.
That’s why the manufacturer says you must ask: What are my costs for material handling today? Nonproductive time must be considered. After all, what the machine is costing per day may increase your overall net costs while it’s moving around the yard. Also, your costs are affected when the handler is left idle due to poor logistics in the yard. Don’t forget to factor in the time it takes to change attachments (if your crane lacks a quick-change feature). Then there’s lubrication and maintenance time for changing the oil and hydraulic filter.
With the cost of material handlers ranging from nearly $200,000 to $1 million, there’s every reason to determine your crane operating costs. This can enable you to decide if your current crane works for you, if another machine might be better, and which manufacturer’s handler would be best for your needs.
Once you’ve addressed the above basic issues, you can conduct a more-informed search for a material handler—and what better place to do your comparative shopping than the upcoming ReMA annual convention and scrap recycling industry exposition, to be held April 25-29 at the MGM Mirage hotel in Las Vegas. (For more information, see the convention preview on pages 43-51 in this issue, or visit www.isriconvention.org.) •
Jim Fowler is retired publisher and editorial director of Scrap.
Recyclers wanted cranes designed for lifting and moving scrap—and material handlers emerged to meet that desire. Now, these relative newcomers are the dominant force in the scrap marketplace.