Success Stories / 03.22.2019

At Shapiro Metals, We Do the Math

Accuracy in Moisture Measurement Adds Up to $33k in Annual Revenue for Aluminum Foundry

At Shapiro Metals, We Do the Math - Image
The Customer

The customer is a premium aluminum casting foundry that manufactures a huge array of parts, ranging in weight from 1 pound to 3,000 pounds. This customer works with a broad range of alloys, utilizing permanent, semi-permanent, and sand casting methods.

The Challenge

There’s a standard deduction that most manufacturers accept when recycling their aluminum turnings; some vendors estimate somewhere within the 18-20% range.

For this customer, their measurements varied widely from transaction to transaction, and at one point they were reportedly reaching 30% moisture. In other words, almost one-third of the weight of the material being collected by their vendor was moisture. It’s no wonder the customer began to question these measurements, resulting in a call to Shapiro Metals for verification and to run an independent study.

The Results

Shapiro Metals quickly assured the customer that if their turnings actually contained 30% moisture, it would have been visible to the naked eye, and after a visual inspection, moisture was not immediately apparent. It was time to get an accurate measurement that would help guide the customer to making a good decision for their business, so Shapiro Metals began running a series of moisture tests using careful heat application. The results? Moisture levels in the customer’s turnings were shockingly minimal—less than 5%.

Upon discovering these results, Shapiro Metals proposed a new partnership—offering to purchase the company’s aluminum turnings with no moisture deduction, which resulted in an instant 30% boost in the revenue from their turnings alone.

Conclusion

The premium aluminum castings company in this study reported a $33,000 increase in annual revenue due to their partnership with Shapiro Metals.

At Shapiro Metals, transactional relationships and standard deductions aren’t enough. Where some recyclers keep their operations hidden, Shapiro Metals strives to educate our customers about our process. Transparency and openness are what create great relationships, and we work hard every day to earn and keep the trust of the manufacturers we partner with, driving profits and helping them achieve their business goals.  

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