These
two equipment makers balance good old-fashioned quality and experience
with youth and state-of-the-art manufacturing technology.
BY JEFF BORSECNIK
Jeff Borsecnik is assistant editor of Scrap Processing
and Recycling.
"We
have machines we put out in the 1930s and 1940s that are still running.
That's the type of equipment we build. It's heavy-duty. It's built to
last." So says Paul Griesedieck (pronounced gree-za-dick), vice
president of American Pulverizer Co. and Hustler Conveyor Co., a St.
Louis-based team that manufactures shredding, crushing, and conveying
equipment.
But
building long-lasting products is only half of the companies'
manufacturing strategy, as his brother Chris, president of the two firms,
is quick to point out. "We make equipment that is
precision-machined," Chris says, noting that this is possible, in
large part, thanks to the sophisticated computer-controlled manufacturing
and computer-aided design equipment that the companies have heavily
invested in over the last few years. American Pulverizer, for instance,
most recently installed a computer-numerically controlled (
CNC
) lathewhich looks
more like a spacecraft than machining equipmentto add to the firm's
array of other
CNC
equipment, including
two vertical machining centers, a horizontal boring machine, and two
flame-cutting machines.
Such
equipment has not only enabled the companies to improve quality and limit
manufacturing costs, the Griesediecks note, but has also increased the
speed and agility of manufacturing operations. As a result, American makes
virtually all of its products to order (customers review and approve basic
"foundation" engineering drawings before production even begins)
and has been able to bring the manufacturing of nearly all components
in-house.
Going
the high-tech route has also boosted the firm's ability to solve customer
problems. "We're in a squeaky-wheel business, so we have to respond
to customer emergencies every day," says Glenn "Skip"
Anthony, junior vice president and plant manager at American Pulverizer.
"We can flip-flop operations to respond because our up-to-date
machinery allows us to cost-effectively process a single part needed
quickly by a customerwithout throwing off the regular production
schedule."
Youth and Experience
This
balance between old and new is evident in American Pulverizer/Hustler
Conveyor's management, as well. The Griesedieck brothersthe fourth
generation to head their family-owned companyare only in their mid-30s,
though both can trace their work experience with the companies back to
summers in high school and college. The two took over the management of
the company when their father, Henry Griesedieck Jr., died suddenly in
1985 at age 59. Though this was quite a shock to his sons, they say they
were able to shoulder the responsibility by pulling together and
practicing the hard-work ethic they learned from their father and
grandfather.
Meanwhile,
Skip, who also follows in his father's footsteps at American Pulverizer,
calls himselfat age 39the "old dog" among the firm's
managers because he's already worked with the company for about 20 years.
He says the youth of the companies' management is a great asset:
"You're always aggressive when you've got young upper management.
You're willing to change, open to new markets and new ideas."
Still,
these young executives recognize the value of the experience some of the
firm's older employees offer. "You just can't beat longevity and you
just can't substitute for experience," says Chris, noting,
"we've had engineers work past 70 years of age." The firm's
veterans include Gary Barnett, director of engineering, who has been with
the companies since the early 1960s, and Carl Bernauer, a welding foreman
who started working there around the same time. Ed Lyston, a systems
engineer, has more than 20 years of service with the firm and Hustler's
vice president of sales, Stanley Gluckin, who is based in
Peoria
,
Ill.
, has been with the
firm since 1966.
In
all, American employs about 60 people, while Hustler adds another 40 to
the companies' personnel roster. All of these employees are rewarded for
their service through a corporate decision to pay them well, train them
broadly and allow them mobility within the companies, promote from within,
and avoid layoffseven in slow timesnote the executives.
Crushing Coal, Shredding `Almost Anything'
American
Pulverizer got its start in 1908, providing the Illinois coal industry
across the Mississippi River with crushers, including its then-innovative
"rolling ring mills," which reportedly produced less fines and
suffered less wear than traditional hammer-type shredders.
After
a decade, the company began to diversify, expanding naturally into related
equipment. "People would call and say, `We have this material and
would like to reduce it to this size, can you do it?'" says Paul.
"The company would then take the idea to engineering and develop a
new shredder."In the 1930s and 1940s, American Pulverizer began to
manufacture steel-turnings crushers and machines to shred heavy ferrous
scrapeventually including equipment large enough to process whole
automobiles. "We can shred almost anything," Paul boasts.
Hustler
Conveyor Co.originally known as Maple City Stamping and then as Iron
Hustlerwas founded in the early 1960s by Harold Mandel, an entrepreneur
with a scrap background, who dreamed up the idea of using oscillating
conveyors, rather than cranes or hands, to feed shears. The oscillating
conveyors his company developedbasically a pan conveyor mounted on
springs and powered by a drive systemwere capable of handling
high-impact loads and feeding at a predetermined rate. They also could
deliver an evenly dispersed, steady flow of material and spread it out for
sorting.
American
bought Hustler in 1979, dropping the "Iron" from its name to
reflect the conveyor company's expanded role serving sectors other than
the ferrous scrap industry and moving the new subsidiary to facilities
near the parent plant in
South St. Louis
.
What
inspired the acquisition? "American was getting inquiries to supply
complete systems, and rather than purchasing conveyors that we would be
responsible for, we thought it'd be easier to have our own company and
provide a whole systeminfeed conveyor, processing machine, and
take-away," explains Paul. The acquisition also empowered American to
satisfy a growing customer desire for "turnkey" solutions.
"In the 1990s, lots of people just want to go out and flip a switch
and run the equipment," Paul notes, "and they want a single
source responsible for everything."
Partnership Pays
The
partnership between the two companies offers additional benefits to both,
particularly on the sales side. "Our machines sell their conveyors,
and their conveyors sell our machines," says Skip, who adds, "It
opens up avenues for both companies."
In
addition, though the firms operate as two distinct companies with separate
work forces, their close relationship and some transfer of key personnel
between the firms over the years (Skip, for example, was with Hustler for
five years after its acquisition before moving back to American, and Steve
Rogan, Hustler's chief engineer, began as a draftsman at American) mean
they know each other's products in detail, which is especially beneficial
in the design phase and on service calls. The two companies also can share
technical skills and resources, such as Hustler leaning on American's
sophisticated machine shop, buying time on the parent company's
CNC
equipment for difficult jobs. Furthermore, the two can
easily coordinate production and delivery, and shredders and conveyors
sold as systems can sometimes be shipped on the same truck, easing costs
and scheduling for customers.
The
partnership has also stimulated product improvements and the development
of new equipment. For example, after being purchased by American
Pulverizer, Hustler was prompted to move more strongly into manufacturing
conveyors to serve shredders and to develop its particularly successful
and widely imitated bale breaker. "People kept calling American and
asking for a machine to break bales of aluminum cans," says Paul.
"We could have manufactured a shredder to do it, but the horsepower
requirements were too big, so we did some experiments and developed a bale
breaker measuring 6 feet by 6 feet that reduces bales to individual
cans." Because the product does not shred or tear material, he says,
it's become popular with plastic bottle recyclers, who value its ability
to leave the bottles whole while breaking the bale apart, which enables
the recycler to sort by color and then granulate.
Other
Hustler products include vibratory screens, head pulley and rotary-drum
magnets, hydraulic turntables, and other sorting equipment such as tub
dumpers and bimetallic classifiers. On the conveyor front, the company
manufactures steel-belt, "flex-o-wall," flat-sliding belt,
troughing, stacking, and oscillating conveyors (which are used for sorting
as well as conveying).
American
Pulverizer has also expanded its product line through the years and now
manufactures processing equipment ranging from small crushers and "delumpers"
to shredders with rotors up to 96 inches in diameter and with price tags
ranging from a few thousand to more than a half-million dollars. A
relatively new and increasingly popular product is the company's
slow-speed, high-torque shredder, which can be configured to process
aluminum, tires, circuit boards, steel drums, plastics, demolition debris,
and various wastes. It can also be used as a preshedder for secondary
shredding equipment and can be made portable.
In
the last six years or so, American has also gotten into the business of
accepting shredders and related equipment traded in on larger machines,
reconditioning the trade-ins, and putting them on the market. The firm's
rebuilt equipmentwhich Chris says can save customers 40 to 60 percent
off the price of new equipmentcomes with a one-year warranty and
usually includes new liners, bearings, bolts, hammers or rings, and other
wear parts.
Diverse Customers and Competitors
Expanding
their business scope has become increasingly important to the companies as
their customersincluding scrap plants, steel mills, quarries, and waste
processing facilitieshave diversified their operations and needs. Thus,
American and Hustler aim "to be as diverse in manufacturing machines
as possible, while still being able to meet specific needs," says
Chris. "We don't want to become so spread out that we can't serve and
satisfy."
Satisfying
today's buyers includes building quieter equipment that is safer to
operate and requires less maintenance, say the companies' executives. Many
customersespecially those facing expensive or limited electric power
suppliesare also very energy-conscious, trying to use less horsepower,
and seek diesel and natural gas alternatives to large electric motors.
"And everybody is price-conscious and wants to process efficiently
with little downtime," says Chris.
While
trying to meet changing needs and respond to growing concerns, the firms'
competition has multiplied. "Twenty years ago there were three or
four shredder companies out there to compete against," says Skip.
"Today, there are maybe 25." Offering an explanation for this
new competition, Chris says, "Maybe eight or nine years ago every
manufacturer had its niche and it stayed there. Nowadays, everybody's
trying to get more diverse and go into other lines to broaden market
share."
The
market for conveyors, shredders, and systems to sort and process scrap and
waste in material recovery facilities and waste-handling operations has
become especially competitive, American/Hustler executives note.
"Everybody thinks that's the place to be right now," says Paul,
"so everybody wants to get in even if they have no experience or
expertise beyond maybe making grain industry conveyors or other light
equipment."
These
two equipment makers balance good old-fashioned quality and experience
with youth and state-of-the-art manufacturing technology.
BY JEFF BORSECNIK
Jeff Borsecnik is assistant editor of Scrap Processing
and Recycling.
"We
have machines we put out in the 1930s and 1940s that are still running.
That's the type of equipment we build. It's heavy-duty. It's built to
last." So says Paul Griesedieck (pronounced gree-za-dick), vice
president of American Pulverizer Co. and Hustler Conveyor Co., a St.
Louis-based team that manufactures shredding, crushing, and conveying
equipment.
But
building long-lasting products is only half of the companies'
manufacturing strategy, as his brother Chris, president of the two firms,
is quick to point out. "We make equipment that is
precision-machined," Chris says, noting that this is possible, in
large part, thanks to the sophisticated computer-controlled manufacturing
and computer-aided design equipment that the companies have heavily
invested in over the last few years. American Pulverizer, for instance,
most recently installed a computer-numerically controlled (
CNC
) lathewhich looks
more like a spacecraft than machining equipmentto add to the firm's
array of other
CNC
equipment, including
two vertical machining centers, a horizontal boring machine, and two
flame-cutting machines.
Such
equipment has not only enabled the companies to improve quality and limit
manufacturing costs, the Griesediecks note, but has also increased the
speed and agility of manufacturing operations. As a result, American makes
virtually all of its products to order (customers review and approve basic
"foundation" engineering drawings before production even begins)
and has been able to bring the manufacturing of nearly all components
in-house.
Going
the high-tech route has also boosted the firm's ability to solve customer
problems. "We're in a squeaky-wheel business, so we have to respond
to customer emergencies every day," says Glenn "Skip"
Anthony, junior vice president and plant manager at American Pulverizer.
"We can flip-flop operations to respond because our up-to-date
machinery allows us to cost-effectively process a single part needed
quickly by a customerwithout throwing off the regular production
schedule."
Youth and Experience
This
balance between old and new is evident in American Pulverizer/Hustler
Conveyor's management, as well. The Griesedieck brothersthe fourth
generation to head their family-owned companyare only in their mid-30s,
though both can trace their work experience with the companies back to
summers in high school and college. The two took over the management of
the company when their father, Henry Griesedieck Jr., died suddenly in
1985 at age 59. Though this was quite a shock to his sons, they say they
were able to shoulder the responsibility by pulling together and
practicing the hard-work ethic they learned from their father and
grandfather.
Meanwhile,
Skip, who also follows in his father's footsteps at American Pulverizer,
calls himselfat age 39the "old dog" among the firm's
managers because he's already worked with the company for about 20 years.
He says the youth of the companies' management is a great asset:
"You're always aggressive when you've got young upper management.
You're willing to change, open to new markets and new ideas."
Still,
these young executives recognize the value of the experience some of the
firm's older employees offer. "You just can't beat longevity and you
just can't substitute for experience," says Chris, noting,
"we've had engineers work past 70 years of age." The firm's
veterans include Gary Barnett, director of engineering, who has been with
the companies since the early 1960s, and Carl Bernauer, a welding foreman
who started working there around the same time. Ed Lyston, a systems
engineer, has more than 20 years of service with the firm and Hustler's
vice president of sales, Stanley Gluckin, who is based in
Peoria
,
Ill.
, has been with the
firm since 1966.
In
all, American employs about 60 people, while Hustler adds another 40 to
the companies' personnel roster. All of these employees are rewarded for
their service through a corporate decision to pay them well, train them
broadly and allow them mobility within the companies, promote from within,
and avoid layoffseven in slow timesnote the executives.
Crushing Coal, Shredding `Almost Anything'
American
Pulverizer got its start in 1908, providing the Illinois coal industry
across the Mississippi River with crushers, including its then-innovative
"rolling ring mills," which reportedly produced less fines and
suffered less wear than traditional hammer-type shredders.
After
a decade, the company began to diversify, expanding naturally into related
equipment. "People would call and say, `We have this material and
would like to reduce it to this size, can you do it?'" says Paul.
"The company would then take the idea to engineering and develop a
new shredder."In the 1930s and 1940s, American Pulverizer began to
manufacture steel-turnings crushers and machines to shred heavy ferrous
scrapeventually including equipment large enough to process whole
automobiles. "We can shred almost anything," Paul boasts.
Hustler
Conveyor Co.originally known as Maple City Stamping and then as Iron
Hustlerwas founded in the early 1960s by Harold Mandel, an entrepreneur
with a scrap background, who dreamed up the idea of using oscillating
conveyors, rather than cranes or hands, to feed shears. The oscillating
conveyors his company developedbasically a pan conveyor mounted on
springs and powered by a drive systemwere capable of handling
high-impact loads and feeding at a predetermined rate. They also could
deliver an evenly dispersed, steady flow of material and spread it out for
sorting.
American
bought Hustler in 1979, dropping the "Iron" from its name to
reflect the conveyor company's expanded role serving sectors other than
the ferrous scrap industry and moving the new subsidiary to facilities
near the parent plant in
South St. Louis
.
What
inspired the acquisition? "American was getting inquiries to supply
complete systems, and rather than purchasing conveyors that we would be
responsible for, we thought it'd be easier to have our own company and
provide a whole systeminfeed conveyor, processing machine, and
take-away," explains Paul. The acquisition also empowered American to
satisfy a growing customer desire for "turnkey" solutions.
"In the 1990s, lots of people just want to go out and flip a switch
and run the equipment," Paul notes, "and they want a single
source responsible for everything."
Partnership Pays
The
partnership between the two companies offers additional benefits to both,
particularly on the sales side. "Our machines sell their conveyors,
and their conveyors sell our machines," says Skip, who adds, "It
opens up avenues for both companies."
In
addition, though the firms operate as two distinct companies with separate
work forces, their close relationship and some transfer of key personnel
between the firms over the years (Skip, for example, was with Hustler for
five years after its acquisition before moving back to American, and Steve
Rogan, Hustler's chief engineer, began as a draftsman at American) mean
they know each other's products in detail, which is especially beneficial
in the design phase and on service calls. The two companies also can share
technical skills and resources, such as Hustler leaning on American's
sophisticated machine shop, buying time on the parent company's
CNC
equipment for difficult jobs. Furthermore, the two can
easily coordinate production and delivery, and shredders and conveyors
sold as systems can sometimes be shipped on the same truck, easing costs
and scheduling for customers.
The
partnership has also stimulated product improvements and the development
of new equipment. For example, after being purchased by American
Pulverizer, Hustler was prompted to move more strongly into manufacturing
conveyors to serve shredders and to develop its particularly successful
and widely imitated bale breaker. "People kept calling American and
asking for a machine to break bales of aluminum cans," says Paul.
"We could have manufactured a shredder to do it, but the horsepower
requirements were too big, so we did some experiments and developed a bale
breaker measuring 6 feet by 6 feet that reduces bales to individual
cans." Because the product does not shred or tear material, he says,
it's become popular with plastic bottle recyclers, who value its ability
to leave the bottles whole while breaking the bale apart, which enables
the recycler to sort by color and then granulate.
Other
Hustler products include vibratory screens, head pulley and rotary-drum
magnets, hydraulic turntables, and other sorting equipment such as tub
dumpers and bimetallic classifiers. On the conveyor front, the company
manufactures steel-belt, "flex-o-wall," flat-sliding belt,
troughing, stacking, and oscillating conveyors (which are used for sorting
as well as conveying).
American
Pulverizer has also expanded its product line through the years and now
manufactures processing equipment ranging from small crushers and "delumpers"
to shredders with rotors up to 96 inches in diameter and with price tags
ranging from a few thousand to more than a half-million dollars. A
relatively new and increasingly popular product is the company's
slow-speed, high-torque shredder, which can be configured to process
aluminum, tires, circuit boards, steel drums, plastics, demolition debris,
and various wastes. It can also be used as a preshedder for secondary
shredding equipment and can be made portable.
In
the last six years or so, American has also gotten into the business of
accepting shredders and related equipment traded in on larger machines,
reconditioning the trade-ins, and putting them on the market. The firm's
rebuilt equipmentwhich Chris says can save customers 40 to 60 percent
off the price of new equipmentcomes with a one-year warranty and
usually includes new liners, bearings, bolts, hammers or rings, and other
wear parts.
Diverse Customers and Competitors
Expanding
their business scope has become increasingly important to the companies as
their customersincluding scrap plants, steel mills, quarries, and waste
processing facilitieshave diversified their operations and needs. Thus,
American and Hustler aim "to be as diverse in manufacturing machines
as possible, while still being able to meet specific needs," says
Chris. "We don't want to become so spread out that we can't serve and
satisfy."
Satisfying
today's buyers includes building quieter equipment that is safer to
operate and requires less maintenance, say the companies' executives. Many
customersespecially those facing expensive or limited electric power
suppliesare also very energy-conscious, trying to use less horsepower,
and seek diesel and natural gas alternatives to large electric motors.
"And everybody is price-conscious and wants to process efficiently
with little downtime," says Chris.
While
trying to meet changing needs and respond to growing concerns, the firms'
competition has multiplied. "Twenty years ago there were three or
four shredder companies out there to compete against," says Skip.
"Today, there are maybe 25." Offering an explanation for this
new competition, Chris says, "Maybe eight or nine years ago every
manufacturer had its niche and it stayed there. Nowadays, everybody's
trying to get more diverse and go into other lines to broaden market
share."
The
market for conveyors, shredders, and systems to sort and process scrap and
waste in material recovery facilities and waste-handling operations has
become especially competitive, American/Hustler executives note.
"Everybody thinks that's the place to be right now," says Paul,
"so everybody wants to get in even if they have no experience or
expertise beyond maybe making grain industry conveyors or other light
equipment."
These
two equipment makers balance good old-fashioned quality and experience
with youth and state-of-the-art manufacturing technology.
BY JEFF BORSECNIK
Jeff Borsecnik is assistant editor of Scrap Processing
and Recycling.
"We
have machines we put out in the 1930s and 1940s that are still running.
That's the type of equipment we build. It's heavy-duty. It's built to
last." So says Paul Griesedieck (pronounced gree-za-dick), vice
president of American Pulverizer Co. and Hustler Conveyor Co., a St.
Louis-based team that manufactures shredding, crushing, and conveying
equipment.
But
building long-lasting products is only half of the companies'
manufacturing strategy, as his brother Chris, president of the two firms,
is quick to point out. "We make equipment that is
precision-machined," Chris says, noting that this is possible, in
large part, thanks to the sophisticated computer-controlled manufacturing
and computer-aided design equipment that the companies have heavily
invested in over the last few years. American Pulverizer, for instance,
most recently installed a computer-numerically controlled (
CNC
) lathewhich looks
more like a spacecraft than machining equipmentto add to the firm's
array of other
CNC
equipment, including
two vertical machining centers, a horizontal boring machine, and two
flame-cutting machines.
Such
equipment has not only enabled the companies to improve quality and limit
manufacturing costs, the Griesediecks note, but has also increased the
speed and agility of manufacturing operations. As a result, American makes
virtually all of its products to order (customers review and approve basic
"foundation" engineering drawings before production even begins)
and has been able to bring the manufacturing of nearly all components
in-house.
Going
the high-tech route has also boosted the firm's ability to solve customer
problems. "We're in a squeaky-wheel business, so we have to respond
to customer emergencies every day," says Glenn "Skip"
Anthony, junior vice president and plant manager at American Pulverizer.
"We can flip-flop operations to respond because our up-to-date
machinery allows us to cost-effectively process a single part needed
quickly by a customerwithout throwing off the regular production
schedule."
Youth and Experience
This
balance between old and new is evident in American Pulverizer/Hustler
Conveyor's management, as well. The Griesedieck brothersthe fourth
generation to head their family-owned companyare only in their mid-30s,
though both can trace their work experience with the companies back to
summers in high school and college. The two took over the management of
the company when their father, Henry Griesedieck Jr., died suddenly in
1985 at age 59. Though this was quite a shock to his sons, they say they
were able to shoulder the responsibility by pulling together and
practicing the hard-work ethic they learned from their father and
grandfather.
Meanwhile,
Skip, who also follows in his father's footsteps at American Pulverizer,
calls himselfat age 39the "old dog" among the firm's
managers because he's already worked with the company for about 20 years.
He says the youth of the companies' management is a great asset:
"You're always aggressive when you've got young upper management.
You're willing to change, open to new markets and new ideas."
Still,
these young executives recognize the value of the experience some of the
firm's older employees offer. "You just can't beat longevity and you
just can't substitute for experience," says Chris, noting,
"we've had engineers work past 70 years of age." The firm's
veterans include Gary Barnett, director of engineering, who has been with
the companies since the early 1960s, and Carl Bernauer, a welding foreman
who started working there around the same time. Ed Lyston, a systems
engineer, has more than 20 years of service with the firm and Hustler's
vice president of sales, Stanley Gluckin, who is based in
Peoria
,
Ill.
, has been with the
firm since 1966.
In
all, American employs about 60 people, while Hustler adds another 40 to
the companies' personnel roster. All of these employees are rewarded for
their service through a corporate decision to pay them well, train them
broadly and allow them mobility within the companies, promote from within,
and avoid layoffseven in slow timesnote the executives.
Crushing Coal, Shredding `Almost Anything'
American
Pulverizer got its start in 1908, providing the Illinois coal industry
across the Mississippi River with crushers, including its then-innovative
"rolling ring mills," which reportedly produced less fines and
suffered less wear than traditional hammer-type shredders.
After
a decade, the company began to diversify, expanding naturally into related
equipment. "People would call and say, `We have this material and
would like to reduce it to this size, can you do it?'" says Paul.
"The company would then take the idea to engineering and develop a
new shredder."In the 1930s and 1940s, American Pulverizer began to
manufacture steel-turnings crushers and machines to shred heavy ferrous
scrapeventually including equipment large enough to process whole
automobiles. "We can shred almost anything," Paul boasts.
Hustler
Conveyor Co.originally known as Maple City Stamping and then as Iron
Hustlerwas founded in the early 1960s by Harold Mandel, an entrepreneur
with a scrap background, who dreamed up the idea of using oscillating
conveyors, rather than cranes or hands, to feed shears. The oscillating
conveyors his company developedbasically a pan conveyor mounted on
springs and powered by a drive systemwere capable of handling
high-impact loads and feeding at a predetermined rate. They also could
deliver an evenly dispersed, steady flow of material and spread it out for
sorting.
American
bought Hustler in 1979, dropping the "Iron" from its name to
reflect the conveyor company's expanded role serving sectors other than
the ferrous scrap industry and moving the new subsidiary to facilities
near the parent plant in
South St. Louis
.
What
inspired the acquisition? "American was getting inquiries to supply
complete systems, and rather than purchasing conveyors that we would be
responsible for, we thought it'd be easier to have our own company and
provide a whole systeminfeed conveyor, processing machine, and
take-away," explains Paul. The acquisition also empowered American to
satisfy a growing customer desire for "turnkey" solutions.
"In the 1990s, lots of people just want to go out and flip a switch
and run the equipment," Paul notes, "and they want a single
source responsible for everything."
Partnership Pays
The
partnership between the two companies offers additional benefits to both,
particularly on the sales side. "Our machines sell their conveyors,
and their conveyors sell our machines," says Skip, who adds, "It
opens up avenues for both companies."
In
addition, though the firms operate as two distinct companies with separate
work forces, their close relationship and some transfer of key personnel
between the firms over the years (Skip, for example, was with Hustler for
five years after its acquisition before moving back to American, and Steve
Rogan, Hustler's chief engineer, began as a draftsman at American) mean
they know each other's products in detail, which is especially beneficial
in the design phase and on service calls. The two companies also can share
technical skills and resources, such as Hustler leaning on American's
sophisticated machine shop, buying time on the parent company's
CNC
equipment for difficult jobs. Furthermore, the two can
easily coordinate production and delivery, and shredders and conveyors
sold as systems can sometimes be shipped on the same truck, easing costs
and scheduling for customers.
The
partnership has also stimulated product improvements and the development
of new equipment. For example, after being purchased by American
Pulverizer, Hustler was prompted to move more strongly into manufacturing
conveyors to serve shredders and to develop its particularly successful
and widely imitated bale breaker. "People kept calling American and
asking for a machine to break bales of aluminum cans," says Paul.
"We could have manufactured a shredder to do it, but the horsepower
requirements were too big, so we did some experiments and developed a bale
breaker measuring 6 feet by 6 feet that reduces bales to individual
cans." Because the product does not shred or tear material, he says,
it's become popular with plastic bottle recyclers, who value its ability
to leave the bottles whole while breaking the bale apart, which enables
the recycler to sort by color and then granulate.
Other
Hustler products include vibratory screens, head pulley and rotary-drum
magnets, hydraulic turntables, and other sorting equipment such as tub
dumpers and bimetallic classifiers. On the conveyor front, the company
manufactures steel-belt, "flex-o-wall," flat-sliding belt,
troughing, stacking, and oscillating conveyors (which are used for sorting
as well as conveying).
American
Pulverizer has also expanded its product line through the years and now
manufactures processing equipment ranging from small crushers and "delumpers"
to shredders with rotors up to 96 inches in diameter and with price tags
ranging from a few thousand to more than a half-million dollars. A
relatively new and increasingly popular product is the company's
slow-speed, high-torque shredder, which can be configured to process
aluminum, tires, circuit boards, steel drums, plastics, demolition debris,
and various wastes. It can also be used as a preshedder for secondary
shredding equipment and can be made portable.
In
the last six years or so, American has also gotten into the business of
accepting shredders and related equipment traded in on larger machines,
reconditioning the trade-ins, and putting them on the market. The firm's
rebuilt equipmentwhich Chris says can save customers 40 to 60 percent
off the price of new equipmentcomes with a one-year warranty and
usually includes new liners, bearings, bolts, hammers or rings, and other
wear parts.
Diverse Customers and Competitors
Expanding
their business scope has become increasingly important to the companies as
their customersincluding scrap plants, steel mills, quarries, and waste
processing facilitieshave diversified their operations and needs. Thus,
American and Hustler aim "to be as diverse in manufacturing machines
as possible, while still being able to meet specific needs," says
Chris. "We don't want to become so spread out that we can't serve and
satisfy."
Satisfying
today's buyers includes building quieter equipment that is safer to
operate and requires less maintenance, say the companies' executives. Many
customersespecially those facing expensive or limited electric power
suppliesare also very energy-conscious, trying to use less horsepower,
and seek diesel and natural gas alternatives to large electric motors.
"And everybody is price-conscious and wants to process efficiently
with little downtime," says Chris.
While
trying to meet changing needs and respond to growing concerns, the firms'
competition has multiplied. "Twenty years ago there were three or
four shredder companies out there to compete against," says Skip.
"Today, there are maybe 25." Offering an explanation for this
new competition, Chris says, "Maybe eight or nine years ago every
manufacturer had its niche and it stayed there. Nowadays, everybody's
trying to get more diverse and go into other lines to broaden market
share."
The
market for conveyors, shredders, and systems to sort and process scrap and
waste in material recovery facilities and waste-handling operations has
become especially competitive, American/Hustler executives note.
"Everybody thinks that's the place to be right now," says Paul,
"so everybody wants to get in even if they have no experience or
expertise beyond maybe making grain industry conveyors or other light
equipment."