One Voice: ISRI's First Annual Convention

"The challenges we face are formidable, but we have a new association and, with it, an advantage that those who preceded us never had--the ability to speak with a unified voice for the recycling industries."

--Richard E. Abrams, newly elected ReMA president

Camaraderie commanded ReMA's First Annual Convention, January 13-16 at Los Angeles's Century Plaza, but grass roots support of association goals challenged "one voice" as the focus of the emotion-packed (and jam-packed) event.

Reminded Howard M. Meyers, just hours before turning over the reins of office, "The merger was really the right course of action." And Sandy Shapiro, minutes after stepping down from his post in the shared presidency, "We have environmental problems and we're going to solve them, but it's going to take 1,800 members in a grass-roots effort to pull it off."

Superfund discussions dominated--and at times darkened--the days, but reunions lit up the nights. ReMA members, many accompanied by family, for a total exceeding 2,250 convention attendees, strengthened bonds with cross-country peers and forged new friendships.

Following are highlights of the week-long series of ReMA meetings, educational seminars, and special events.

Keynote Breakfast

Current ISRI, Current World, Events

"It's exciting to contemplate the increased potential we ReMA members will realize from merging our former chorus of voices into a single, strong voice," said 1987 Convention Committee Chair Arnold Plant, of The Samuel G. Keywell Co., Baltimore, Maryland, in opening remarks at ReMA's Keynote Breakfast.

ISRI Executive Director Herschel Cutler spoke on the state of the association, opening--as many would throughout the convention--by praising the merger-idea-come- true. Said Cutler after listing the association's operating accomplishments, "ISRI has moved quickly and forcefully in the short seven months of its existence ... but you ain't seen nothing yet."

Internationally acclaimed journalist Pierre Salinger informed and intrigued breakfast attendees with his tales and thoughts about world events. Said Salinger at the beginning of his talk, "I'm increasingly impressed by the evolution of this [the recycling] industry. ... I'm so impressed that I'd like to see some of your techniques applied to the recycling of politics."

Presidents' Breakfast

Looking Back, Forecasting Future

It was another early but popular convention event packed despite the long night before. Winners and losers from Friday night's Casino Royale diligently returned Saturday morning to the tables, this time set for the Presidents' Breakfast.

Howard M. Meyers, of RSR/Bayou Steel Corp., Dallas, Texas, and Sandy Shapiro, Cambridge Iron & Metal Co. Inc., Baltimore, Maryland, with five hours left to their copresidency, told the story of ReMA's birth, delineated the positive merger results, and paid tribute to the 1987 National Officers, who made the merger happen.

Recounting the January '87 Dallas meeting of the former ISIS and NARI officers, Shapiro told of the hours the two groups spent together: "We wrote, we erased, we cajoled, we yelled, we threatened walkouts, we paced back and forth."

"Finally," Meyers interjected, "we decided to take a break. Each group would come back with ideas on how we could make it work. ... When the moment of truth came, we unveiled our work. The two organizational charts were almost exactly the same."

The major results, one year later, Meyers said, are "power, strength, and services." Added Shapiro, "When we speak to Washington and to state governments, when we present our cause to the public, we will be reckoned with as one voice--we will be heard."

National Officer Elections

Abrams Takes Presidential Seat

On January 16 the ReMA Board of Directors bestowed upon Richard E. Abrams "the greatest honor I could ever receive." He was elected through a unanimous vote the association's first full-term (two-year) president.

Abrams, president of B. Abrams & Sons Inc., Harrisburg, Pennsylvania, succeeds former Co-Presidents Howard M. Meyers and Sandy Shapiro, who took office following the ReMA merger June 9, 1987.

"Producing a singleness of purpose and a spirit of cooperation and camaraderie among all our members will be a major goal," said Abrams in citing plans for the association under his leadership. He also mentioned intentions to immediately begin increasing chapter participation and plans to address Superfund.

At the same meeting, ReMA's Board elected David Serls first vice-president. Said Serls, of Colonial Metals Co., Columbia, Pennsylvania, "Members can count on my complete commitment to our association and its goals."

Arnold Gachman, Gachman Metals Co., Forth Worth, Texas, was elected second vice-president. Gachman said he is "committed to providing strong leadership in helping address the problems ReMA faces."

Elected treasurer was David "Cap" Grossman, Grossman Iron & Steel Co., St. Louis, Missouri, who called "the chance before me now ... a great thrill. Who wouldn't be honored to serve as a national officer of this association?"

James A. Fisher, Fisher Steel and Supply Co., Muskegon, Michigan, became ISRI secretary. "I'm committed not only to excellence," Fisher said, "but to the real glue of this organization: volunteerism."

Superfund Relief Goals, And More

ISRI Efforts Under New President

A "major effort" to persuade Congress to adopt an "environmentally sound and balanced system of Superfund liability for an environmentally necessary industry," was decided upon by the ISRI Board of Directors at its latest meeting, announced newly elected president Richard E. Abrams at the ReMA Convention.

According to Abrams, Superfund liability, both actual and potential, places the entire scrap processing and recycling industry under a cloud of uncertainty. "Without a doubt," he said, "Superfund in its present form is the single greatest impediment to a healthy recycling system in this country. ... The association cannot stand by and watch the recycling industry decimated by the arbitrary strict liability provisions of the current law. To do so would disserve both the industry and the public's interest in maximum recycling of obsolete materials and the resulting environmental benefits."

Abrams announced additional ReMA efforts ahead: "bringing former NARI members into the chapter system" and "through a strong public relations effort, telling the public what we do--making it apparent to them we're a very important part of the community."

Chapter Presidents Meeting

Zimmern New Chair; Bank, Vice-Chair

Jay A. Zimmern, Prolerized Schiabo-Neu Co., Jersey City, New Jersey, was elected chairman of the chapter presidents at their January 14 meeting. Zimmern, who is president of the New York Chapter, succeeds James A. Effron, former Seaboard Chapter president, The Samuel G. Keywell Co., Baltimore, Maryland. Michael Bank, Winston Bros. Iron & Metal Co., Inc., Detroit, Michigan, became vice-chairman. Bank is president of the Michigan Chapter.

In addressing the chapter presidents, Richard Abrams, former Central Pennsylvania Chapter president, stated his intention to stay closely involved with chapters during his ReMA presidency. "I know what you're up against as chapter presidents--I was there 10 years ago--and I want to help. I expect to hear from you often. ... I want to know about your projects and your problems."

Metals

Favorable Outlook for Aluminum

While aluminum consumers rebuilt some of their sagging stocks last year, their inventory levels at the close of 1987 were at the lowest point since 1974, according to James S. Pasman, Jr., chairman and CEO of Kaiser Aluminum & Chemical Corp., Oakland, California. Pasman addressed the "Spotlight on Aluminum" session during ReMA's Convention.

Better demand, lower inventories, and an expected growth in Western primary consumption by 2 to 3 percent in 1988, as well as anticipated increases in U.S. aluminum shipments this year of 2 percent, bodes well for aluminum, according to Pasman. He pointed out that in 1987, U.S. aluminum shipments rose by 5 percent to 6 percent, exports increased, and imports dipped 10 percent. Western world consumption gained about 5 percent in 1987. The U.S. industry operating rate was 93 percent, rising to 95 percent at year-end. "U.S. primary production could jump to virtually full capacity by mid-1988," said Pasman.

Referring to the rapid rise in ingot prices during 1987, Pasman said that "the Midwest market price for prime aluminum moved up very sharply, rising from 53 cents a pound early in January to a high of 88 cents a pound in both October and December." He said that fabricated products price realization will improve early in 1988 as they catch up with gains in ingot pricing.

The weak dollar has helped push exports of aluminum, which should increase between 10 and 15 percent in 1988, according to Pasman. But he anticipates imports of semifabricated products to fall off because European and Japanese producers have lost their currency advantage.

The aluminum can, Pasman stated, "makes good economic sense," because it -conserves energy and can be recycled back to its original end-use-an aluminum can. More than 1.2 billion pounds of used beverage cans are recycled annually--amounting to about 35.0 billion cans each year, or 50 percent of those manufactured, according to Pasman. With the reduction in prime capacity, producers will be looking for secondary metal to augment the existing supply.

Pasman said he believes that the U.S. automotive industry will follow Europe's lead in using aluminum motor blocks. He also foresees increased use of aluminum in the food can market.

Even if growth is slow in 1988, Pasman said that producers "shouldn't have any trouble selling all we produce."

Metals

Zinc/Lead Supply and Demand

In spite of an announced producer price increase on January 14, 1988, ReMA's Zinc Spotlight speaker looked for lower zinc prices in the long term. David Carlile, president and CEO of Pacific Smelting Co., presented his views on world and U.S. zinc demand, supply, and price.

Looking first at 1988 world demand for zinc, Carlile cited overall economic growth and the level of purchases by the Socialist Bloc, "principally the People's Republic of China, although the USSR may be more prominent in 1988," as the most important factors driving demand this year. U.S. growth also concerns Carlile, and he questioned the direction of the U.S. economy in 1988.

Carlile also looked at several important factors governing world zinc supply in 1988, namely production improvements at Falconbridge and Hudson Bay; the absence of major labor negotiations; capacity expansions in South Korea, Norway, and Yugoslavia; and smelter rationalizations.

For the short term, Carlile's analysis suggested that there was little surplus producer material available, but whether this condition would persist was still questionable. Carlile pointed to other published sources that forecasted 1988 world zinc supplies well above world zinc demand.

Carlile's view on prices calls for "short-term price stability ... or somewhat higher levels in the first quarter of 1988." Interestingly, Carlile believes that, again, due to market uncertainties, zinc prices in the long run will ultimately be determined on a terminal market basis, as opposed to a producer list price. Carlile anticipates continued zinc "price volatility" in 1988.

Richard Amistadi, vice president, sales-marketing of The Doe Run Company, addressed the issues of supply, demand, and "near-term market dynamics" affecting the world and U.S. lead market. Amistadi reviewed U.S. lead markets over the past 15 years, noting, for example, that even though lead gasoline additives have virtually been eliminated, batteries have "filled the void" in lead consumption. At the same time, he countered, the increased use of lead in batteries has given the market seasonal cycles, "leading to peaks and valleys in lead pricing." For 1988, Amistadi forecasts U.S. lead demand "to be about the same as 1987."

Regarding lead supplies, Amistadi cited both worldwide and U.S. drops in inventories as the "driving force behind the price rise for 1987." This year he forecasts lead production to increase "modestly," mainly in the primary sector. Amistadi then went on to review structural changes in both the primary and secondary sectors. Amistadi believes that U.S. and world lead inventories will increase in 1988 and that this increase will "continue to put pressure on the lead price."

Amistadi closed by noting that the strength of the dollar will play a "major role" in 1988; he believes a weak dollar bodes well for U.S. lead prices. The price for lead in pounds sterling has been nearly constant for the past several months, but according to Amistadi, in U.S. dollars it has actually increased 10 percent since October.

Metals

Reliance on Purchased Scrap to Continue to Rise

Speaking at the Iron and Steel Workshop, Milton Deaner, president of the American Iron & Steel Institute, hailed the "reappearance of modest profits" for the steel industry in 1987, but said it will take many profitable years "to repair the damage done" during the previous five years. Nevertheless, Deaner gave some encouraging figures for 1987: steel output of 88 million tons, with 38 percent by electric furnaces that use 100 percent scrap; and mill shipments of finished products at about 76.0 million tons, up from 70.3 million tons in 1986. Serious problems still lie ahead, he cautioned, pointing out that the price of steel is only about 80 percent of what it was five years ago.

Production costs have been cut roughly 20 percent in recent years and at current exchange rates, "the United States is a lower-cost producer of steel than Japan or West Germany," according to Deaner. He also said that, contrary to popular opinion, "overall use of steel in the American economy has remained more or less stable since 1980. Total imports, both direct and indirect, now fill about a third of this nation's total steel demand. ... Most of the steel being sold in the U.S. by foreign producers continues to be priced below the cost of production."

The increased net yield of crude steel to finished steel product, together with other changes in steelmaking, has resulted in about 17 million fewer tons of scrap being generated in-house in 1987. Therefore, Deaner said, the steel industry purchased about 43 million tons of scrap in the outside market.

Metals

Copper’s Rocky Road

A year ago, nearly everyone seemed to be predicting that the price of copper would never go above 70 cents a pound, said William G. Melville, vice president of sales, BP Minerals America (Kennecott), Salt Lake City, Utah, at "Spotlight on Copper." "If you had suggested that maybe it would go to $1.40, they would have called the medics."

Melville showed how the combination of a consistent drop in inventories as the year progressed--both on LME and Comex, as well as in producers' and consumers' hands--together with a rise in worldwide consumption levels, gave impetus to higher copper prices.

The low-level inventories impinge on the market. The difficulty of some consumers to secure spot copper has resulted in higher prices for this grade of material. According to Melville, until these stocks can be rebuilt, the market will continue to feel the impact of the low inventory situation. He commented that additional production could change the picture, but that will not happen until later in 1988.

When asked whether he felt that producers may once again "overproduce" and thus weaken the market, Melville said he did not think the conditions existed for this to happen. The other factor that can change the market picture, he noted, is consumption, but he conceded that predicting the demand level is extremely difficult.

Melville stated that U.S. copper producers have met the challenge of foreign producers. "You are today looking at a very different U.S. copper industry," he declared, "one that is here to stay."

Safety

Loss Control Programs Presented

In a wide-ranging workshop sponsored by the Safety Committee, convention attendees learned about the practical problems associated with substance abuse, the importance of smoking cessation programs, and the technical requirements imposed by OSHA standards relating to lead, asbestos, and hearing conservation. "Loss Control Programs for Employee Safety and Health" presented information based on the experiences of ReMA member companies.

The panel of volunteer experts conducting the workshop included: Henry Culp, Jr., president of Culp Industries, Inc., Attalla, Alabama; Frank Giglia, Jr., vice-president of Allied Scrap Processors, Inc., Lakeland, Florida; Joseph Kovacich, vice-president of Miller Compressing Co., Milwaukee, Wisconsin; and William Lowery, executive vice-president of Annaco Inc., Akron, Ohio.

The most controversial topic discussed was substance abuse. During this segment, workshop participants learned the extent of workplace problems caused by drugs and alcohol and discussed potential control measures in the context of efforts taken by two scrap processors.

Another particularly interesting topic covered at the workshop was company-wide smoking cessation programs. Kovacich discussed a Smoking Policy Institute study suggesting that smokers--due to such things as higher insurance costs, absenteeism, and reduced productivity--cost employers up to $4,500 more per year than nonsmokers.

Insurance, Safety, Transportation

Improving Fleet Safety

The insured losses alone are in the millions, according to Peter L. Kramer, Kramer Scrap Inc., Greenfield, Massachusetts, when calculating the annual financial damage done to the scrap industry through motor vehicle accidents. That's not counting the indirect costs such as overtime pay to other employees to perform the missing employee's work, expenses involved in rescheduling operations, and productivity costs caused by substitute employees performing unfamiliar work.

Kramer was co-presenter with Frank J. Cozzi, Cozzi Iron & Metal, Inc., Chicago, Illinois, for "Cost Savings Through Vehicle Fleet Management," a seminar jointly sponsored by the Insurance, Safety, and Transportation Committees. The seminar focused on company measures for fleet safety program success.

According to Cozzi, a successful program requires a safety policy statement, a designated person to administer the program, assigned responsibilities, and accountability for fulfilling responsibilities. In addition, he said, the company must provide sufficient budgets for maintenance, training, and administration of the program.

Young Executives

Joining the Business Without Dividing the Nest

"A father who is leader of the family business may see a son who enters the business as threatening to that role." Psychotherapist Paul R. Inglizian examined this and other problems commonly encountered when family members begin working together, during "How to Impact Your Business--Techniques for Young Executives." The seminar, moderated by Rik Kohn, of The Federal Metal Co., Bedford, Ohio, offered advice to young executives not just from the therapist's point of view, but also from that of two industry executives.

A father in the business, Jerome Robinson, of J. Robinson Reclaiming Industries, said the good working relationships he has with his sons stem from "a lot of patience, good senses of humor, good communication, and mutual respect."

A son in the business, Cap Grossman, of Grossman Iron & Steel Co., St. Louis, Missouri, pointed out the problems created when a young executive perceives himself as overly important. Grossman offered this advice as a preventive measure against family conflict: "Go work for somebody else ... someone in a different region ... a noncompetitor ... before working for your family."

Guest Speakers

Informative and Entertaining

Who wouldn't want to boast the trait "Mentally Tough"? Convention attendees flocked to the two-part session by this name to learn ways of developing a strong mental state. Sports psychologist James E. Loehr and futurist Peter J. McLaughlin presented wellness techniques, including steps for laughing correctly--and effectively.

Earl D. Brodie, business consultant, conducted the session "When Your Name Is on the Door." According to Brodie, "a business owner has the privilege of making decisions without considering how they might be used against him politically within the firm."

Management consultant Carol Sapin Gold presented "Ideas for Motivating Your Employees."

Linda Ellerbee entertained at the Ladies Luncheon with tales of reporting for television. Among other stories, the newswoman and producer told about literally giving blood on the air. "It was probably the first time I gave blood for television," she said, "but it was not the last."

Camaraderie commanded ReMA's First Annual Convention, January 13-16 at Los Angeles's Century Plaza, but grass roots support of association goals challenged "one voice" as the focus of the emotion-packed (and jam-packed) event.