join us every friday on clubhouse where we will be talking scrap with industry vets nationwide hey what’s up i’m good man yeah we are busy man i feel i feel i completely understand when people can’t make it on here because it’s just been so busy around here we had some slow days i think um alex on scrap metal chat brought that up saying they were slow um basically saying they were so probably because the stimulus checks are you guys seeing any of that andy yeah so man i tell you what we have been uh we’ve been really busy now like today has not been as busy but just overall we’ve been we’ve been pretty slammed gotcha yeah same hair man we we had a we did have a few slow days this week but overall i walked back there look at the yards look at the how much requests are coming in the flow coming into the yard just from people hauling it in it’s just been it just feels like we’re ramping up for a pretty crazy crazy year you know so yeah i think so i think so hey i am probably

gonna have to just mute hearing a little bit and listen in i’ve got a call that i can’t miss that’s going to be coming in here in just a little bit i’m going to have to probably have to jump off pretty quick whenever that that’s funny whatever you can squeeze in cool and we’re going to have um hopefully he jumps on here soon jake he just i mean he just opened a brand new yard a year ago um so that’s kind of what this episode’s gonna be about opening a new yard expanding the struggles with that you know which even if you haven’t opened a new yard recently everyone understands the difficulty just expanding their you know their team even oh yeah for sure so first year but anyway um like you guys you guys got the the one yard right we do yeah we just have one are you guys always looking to expand your team are you guys uh what do you guys do on that on that front yeah we’re always trying but it’s so tough right now like i mean we cannot find help it’s any uh seems like any

business we talk to in our region everybody’s in the same boat nobody can find any help we can’t we can’t fight drivers we can’t find laborers it’s just it’s tough all the way around yeah i hear you and that that’s the biggest struggle i think with opening a new yard you know you got to find the people that work in it you know so that would be a big undertaking for us right now yeah so what’s up brett how are you doing sir how are you doing i’m doing well man well brett i mean you’re gonna have a lot of insight on this until we can get jake i just shot him a text because i talked to him earlier he was planning on coming coming on but like what are like you know since i’ve i started with you and united in 2010 and what a year year and a half later we opened boise then we went open twin falls then then after that what’s my timeline after that then we go help open legrand yeah we open the grand then city and then we went over to hayburn hayburn um and

pants so that’s six that’s six yards and we’re like a glutton for punishment yeah six yards in you know in 10 years really you know yeah about 10 years so and and what do you feel brett like it would be kind of cool to see your perspective on this what’s up jake hey guys i’m sorry for the delay it’s okay we’re already diving in i was kind of picking i just basically told everyone we’ve opened six additional yards in 10 years and that’s where i think your insight on you being real fresh out there and kind of the the trials and tribulations that come with it so i know like what i thought was hard when we opened boise but brett on your end like what’s the hardest part about doing that staffing staffing it getting the core group i mean i think anybody that’s in the scrap industry knows that is super capital intense so i mean it’s i mean i don’t care even if you’re putting together a small yard i mean it’s not we don’t have big huge shredder yards um but most of our yards are you know well and

you know you got to be in a good cash position or banking position or whatever be able to you know cash flow scrap flow as it comes in because now you’re adding to your existing yards um then also just the equipment and the um everything else that goes along with it you know i mean there’s just people and getting a core group of people you go through a lot of people when you’re putting a new yard in because you’re just kind of you know especially if it’s a new territory you’re just kind of feeling your way through the process you know just in the the people aspect even if you send a good manager or someone that’s qualified to run it you still got to find all the ancillary pieces to plug into it well then you’re putting yourself out there like on you know on the side that i don’t always see like on the accounting end on the financial part you know you’re stretching yourself so thin you’re you’re accruing all that risk you know like and that’s where i would completely understand like some outfits were like you know you got

one yard and that’s a big task at a second yard especially if that one yard you’re making decent money you got a good system like the a big risk is opening in a second yard and like screwing up what you had good going on the first one you know so you’ve seen it happen we’ve seen it happen guys that get on into their second third yard and they’re almost rob and peter pay paul taking money out of their existing operation to fund something else you know just get it over the hump and once you can never get it over the hump then it’s you know now you’re kind of taken away from your one that was actually doing well so jake give us a real quick uh of history about about maryville recycling and about because what are you how long how long have you guys been open now just over a year man that’s what i thought pretty crazy yeah yeah it’s uh i’m looking out right now and i’m sure like everyone else we’re pretty full so it feels uh feels good um but yeah i you know i i i think

pride is done too where you have these greenfield sites uh on top of that and the timing and the equipment uh you talk about uh you know pro you know overruns in terms of budget change orders there’s a lot of things that are out of your control and especially now it’s with recycling facilities it’s there’s this perception within society not in my own backyard so the standards in which we have to produce a facility um that’s accepted uh is is just increases the general cost i mean you just can’t put together like a modular home and a truck scale and say you know let’s go do it i mean you know for us we had to bath it there’s landscaping uh you know new buildings um so that was that was tough and and we opened up during the hydakovic so i think our first day was march 18th or march 20th or something so yeah yeah i wasn’t really sure if we can see six months and i remember talking to you guys about it and you’re like nah it’s gonna work like don’t worry about it it’s like just everything’s dead but

it’s gonna work and i think the hardest thing too is when you open up a yard and especially in a new market equipment wise you’re kind of thinking all right this is what i need to get going but you don’t really know what’s going to come through your doors with what it counts i mean you have an idea of what’s out there in the market and i think we all do of you know what we need in terms of processors but you’re talking about like adding additional forklifts skid steers telescopes material handlers trucking i mean your your tap your capex greatly expands too and um and that’s what we learned as well and i think it’s just kind of a year into it you’re going to um you’re just going to hit your stride but you know for the first nine months you’re losing money yeah you know i don’t i don’t care what you say it’s here you know the naivety of it you’re not going to be an overnight success it just takes time uh to get that community acceptance to build your brand and uh well i think making money after

nine months is is not always gonna happen either you know i think it could take you know a year year or two possibly you know depending on the market so yeah i mean it’s and that’s true too nick i mean like when we opened up it was two buck cop no one’s bringing anything in that two buck copper um markets definitely helped but um i would say too i had a lot a lot of per turnover um which was extremely challenging and different people in in key positions had left and laborers and it’s just it really does inhibit your ability to grow and and to function did you plan on having like you obviously knew that there’s some turnover was gonna happen yeah but was there some things like looking back that you’re like shoot if i would have planned a little more accordingly for the turnover that could have helped you in that first year i think so it’s just the kind of higher heavy and i think i was conservative just being you know i don’t want to have a bloated payroll and just um and just have access and you know

i want i want people to have work to do you’re trying to run as lean as possible right exactly and we still are i mean like you know i’ll hop in this semi you know i got a cdl and i’ll haul my own you know yeah i love my own truck sometimes if i’m in my office i work i walk out to the floor scale and that weigh customers up and i sort all sorts of material as it comes in or i’ll jump in this good steering and load the harris baler like it doesn’t matter you’re you’re just trying to make it work and run lean and efficiently and you have and i think you really have to immerse yourself and create a a culture of buy-in that we’re all buying in towards something greater than ourselves and i think that’s something that you guys ever do a really great job of is that all your team members seem to buy into your program and if they believe that this thing could scale and that it’s going to be successful then it will yeah yep but it’s you know it’s just it’s that

it’s that it’s that daily equity that daily sweat that you got to put in and show them that you know what i’m willing to get up at 4 30 in the morning and go take a load in at 5 30 and and and if i’m doing it so so can you you know you’re willing to put your money back into your business right like that’s the biggest thing what you’re saying is sweat equity sweat equity at the beginning that’s all you have you don’t have equity right it’s all you have is sweat and then and then as you get equity now it becomes a combination of sweat equity because you got your sweat and your equity you can start putting in back into it then as you grow and you find more people and to grow your business and now you’re putting equity and money back into it and in order to really snowball it that’s the only way to do it you know you can’t be taken out 50 of your revenue and putting it in your own pocket and expect to grow exponentially if you’re not willing to to put your money

where you’re you know where your ideas are where your mouth is you’ve got to put it right back in well when the economy’s hot like it is on the housing side i i start to see all these electricians pop up that are just driving 20 21 pickups everyone on their fleets got them everyone they’re buying new houses and they’re making really good money but i’ve seen it i saw back you know in 12 and when the other dips happen like you know those are the companies that don’t make it you know because they didn’t put anything back into the business man and that’s one thing i i applaud like any business not just the scrap industry like some of the electricians the ones that make it or the ones that are you know that are smart with money and they understand the value of putting the money back in to the business you know so the one i mean they’ll always fail the ones that never put anything back in you’ll eventually they’ll go out of business so real quick jake you said he opened in march of last year but before march how

much planning how when did it all start like when did that start yeah so the concept was really um i kind of was his birth going into 2020 so let’s call it january 2020 i i sat down and wrote a business plan and um went about and doing it to go raise um you know basically kind of like a venture capital style and you know in seed money and so i secured my first invest investor or first capital commitment of march of 2020 and when we when we you know we selected a site we bought it and we hired an architect an engineer an attorney to kind of push this through uh to get a conditional use and uh and it was a big gamble because it was like we just paid you know 200 grand for a couple acres and sixty thousand dollars and professional services and we didn’t really have control it went through a zoning board a board of appeal and you know we we kept making we kept the dialogue going they got to a point where it was like a 50 50 chance but we just kind of satisfied

them in terms of the design and really putting together a um a really nice working facility that that you know that’s kind of that would wouldn’t look any different than any other manufacturing facility but it added a lot of cost and so from that point we we got our um approvals in august and then start and then broke ground in september and opened up opened up in march so it was we tried to move fast just because i thought the market was good at the time i remember copper being at like 287 or 90 yeah just before cover and i was like you know what that’s i want to get this going so i get that run going into uh that summer of 2020 and that was really the goal that i wanted to establish myself from you know my my core customer segmentation which was the contractors and um and and so i mean just kind of like in any market uh i think brad and i talked about it there’s certain market indicators that you kind of look for and one of them that i looked for was a number of union

halls because that’s an indication of contract labor and home improvement stores and so if you have those you know that’s crap circulating yeah absolutely you’re the one that you’re the one that brought that yeah to my attention jay to be honest like i never even that never that part never even crossed my mind but i mean obviously like you and i discussed i mean those guys have done a ton of market research as far as you know population um movement people coming into certain areas i mean those guys are paying millions for that type of market research and where’s the best place to put a store and all that so i mean i guess like i said i i never that part of it never had even crossed my mind until you said that and i’m like yeah it makes sense so um that being said it’s just we’re still hitting kind of steady state and and building our customer base but it’s it’s a slow burn um you know there’s there’s days where we’re we have robust numbers and we’re doing some volume there’s days that we don’t but you know what i’m

the new kid on the block and and business is earned and we’re in it or you know a dog-eat-dog world especially a really competitive business and the only thing you can do is just do the right thing and create a brand that that’s that’s that resonates with your customers and we we actually got another opportunity we weren’t really looking for it we’re actually starting a second yard um that’s about an hour and 20 minutes away that’s kind of the country and and the same type of indicators there’s a ton of there’s a ton of green energy infrastructure around there i mean the whole service economy is built upon servicing the wild mills and solar farms and there’s you know big ad you know commercial production and and manufacturers and big grain elevators and it’s the same thing i mean if there’s auto salvage guys within a 10 mile radius line it means that there’s scrap out there there’s tin you know there’s something you know circulating and um and so it’s the same thing and and uh just kind of got lucky with that one um not sure what exactly how we’re

going to design it or how much money we’re going to put in the infrastructure initially it’s just it’s just kind of a you know a good deal i would say a value deal where we just kind of purchased the inventory and landed one fell a swoop and we thought it was you know an appropriate price point where you know you know if we could just come out at par and be quit for you know and be into it for a credit um and so be it and we could kind of test the market but it’s kind of funny like we’re cutting over there and uh and uh you know we lose yeah and like you know the people from the county came and there just seems to be community acceptance i think that’s the the biggest thing with the yard is that you want to do right i think a lot of times larger corporations or larger guards that have been there just have extracted value from the community and never really reinvested it or made it worthwhile for them and i think it’s i think for new generation operators kind of like ourselves

it you have to give back to the community you have to add value and it’s not just jobs but it’s like what what what are your values and how can i support your values what uh when does that yard gonna be open roughly i’m thinking probably 90 days you know it’s wow so it’s so we’ll see i mean we are we’re moving trucks out of there so we’re we’re moving to you know we’re moving tons out of there um so i mean it’s if they show up right that’s the other yeah that’s the other thing you know outside care it’s just that’s a whole nother nightmare and a podcast discussion is just i think that’s the biggest strain on growth and and and again as a new yard i’m you know before it was fine before beginning of march all the way till now it was fine with trucking like we had outside carriers helping us do our roll-off work you know we we had you know bulk guys that would show up on time and that were hungry for work and really it kind of switched the middle of march where it’s

like there’s no capacity yeah you could call you could call our guys and they’re just like i’m not taking on anyone else and he’s like and i’m like what if i buy the assets what if i buy a clemente or a monster and you look up to and i’m like yeah that’s great but i have no one to get into and get in the truck and pull it so um and that’s where your relate your relationship could come in handy you know on the and you being the new the new guy in town that’s going to be harder to maybe build some of those relationships out the gate you know so yeah it’s just and it’s just what we have to do so i’m really lucky down into the yard and followers you know the guys down there they’re ad guys they’re farmers for most their lives and they hauled around grain trucks and had cdls at some point so they’re all willing to and i’m like listen if you go out there go get your cdl i’ll give you a three thousand dollar bonus i’ll pay for it i mean that’s at the

point and it’s a point now it’s like i cannot move my sheet on it i i can’t move my you know my my i mean i just cannot get guns in here i could get end dumps in here um kind of sparingly but you know sheet iron is becoming a liquid commodity how are you doing i think yeah how are you doing adam good thing sorry sorry you guys i apologize that’s okay just to catch you up we’re just kind of all kind of talking about opening new yards jake opened up a new yard about a year ago i’m just kind of just picking everybody’s brain on like the biggest struggle on doing that i know you’ve opened up a bunch of new facilities since you’ve been in charge over there so we’re just kind of going through that i mean we touched on the number one problem is the people capital when you open a new facility and we’re just kind of expanding from there so yeah buying a new yard especially it’s a pretty existing yard get over the hurdle the environmental the environmental built up anymore it would pick up the

standards now for you know ground water and things like that so that’s going to be a big challenge also on top of just like the you know the employee you know the deficiency of employee issue that’s going on in the country now yeah absolutely and jake touched on that jake you had to cap your yard put a you probably had to put a water retention system in didn’t you yeah oh yeah wastewater treatment and you know and city made me actually do some of their infrastructure work and build out some ditches and retainers and and it’s just uh it made me sign a uh a basically a a maintenance term for you know 15 years and even though it that’s their problem it’s their domain they’re like they’re like screw you we’re gonna we’re gonna put the bill on the kids so that’s what happened and i i buckled and that and they linked it and they were smart so instead of them having to take out their ditches and resold it and and put in you know special seeds to help with water absorption and really what should be a public part of

public works it became my problem gotcha brett when you opened um when you opened boise how much you opened it what was it in 2011 2012 when did you start the process brett like when did you start thinking about it and all that you know i always wanted a property i always wanted a facility in boise um just because that’s the biggest city in our state it’s the has the most potential there was only one existing scrap metal recycling facility in boise and but the real estate over here was so expensive going into the 0.708 before everything busted so i just kind of had to just kind of wait and bide my time and so when the economy took a crap and then in 2000 and what 10 11 2010 we closed on the property 2011 is when we kind of got everything our ducks in a row and put together it was uh the biggest hurdle for us was at that time the city of boise was was wanting people to come build and do because they wanted to get the economy kickstarted again so they were a little more flexible than

i think they would be today right where everybody is trying to come to boise and trying to put in facilities you know i mean not just scrap facilities but any type of any type of manufacturing production type of facility and i think i think that’s why i prefer to grow when the economy is kind of because everybody’s a little more willing to do business or a little more will going to be flexible um so did that answer the question so basically like you would have been thinking about it since 08 you just kind of you probably had the stuff in the background ready to pull the trigger and then when the time was right did i want to put a facility in boise in 2004 when i first started that’s right full time like that was i’ve been brewing on that thing for years right until finally just the right chain of economic events kind of came to fruition for us and it was like all right it now’s the time let’s go and then after that do you feel like that exercise and opening that new yard um since you took over do

you think that helped you prepare for all the other yards you opened up absolutely yeah i mean i mean boise is probably the toughest city that we’ve dealt with as far as doing any any from a regulation standpoint or whatever um so it kind of made every the other ones feel a little bit easier um whether they were or not maybe just because you’ve been through the process and you know most what to expect so nothing really catches you too off guard gotcha that makes sense i mean i agree with that 100 you know once you do one the people the kind of core people that helped open that one up can go help your other yards once you find the right people you can go like hey like give them the tools to be successful um and that’s where i feel a lot more comfortable it goes back to people capital like it still goes back to it still goes back to getting people and having somebody to go run at or being able to be enough have enough people in one of your existing operations that you feel like you can float

them over there or move them to that facility or whatever i mean that’s the biggest challenge is who’s gonna run it and you know the regulatory standpoint you know environmental how’s it gonna how’s that deal gonna shake down and then you know obviously the capital intensity of just the scrap business in general the equipment the the money flow um those all all have to be kind of taken into consideration okay great and adam anything else to add on when you’re doing going through and you know expanding to a new branch or a new type of business any any other insight on that that you never thought would have came up but did come up and you weren’t prepared for yeah i mean sometimes when you know you’re buying a mom and pop it’s it’s to get the culture changed over to the way the core businesses sometimes you know that’s taken longer than you know longer than anticipated um and you know it’s hard because the relationships you know the mounts and pops has with the customers when you go in and try to change it make it a little more corporate sometimes it

definitely um we’ve lost some customers because of that so we tried to find a happy medium by still you know i think we do we lose you regulations that are that are out there now gotcha it kind of lost you a little bit there but i could see that you know especially changing one culture to another that that’d be very difficult to do especially very difficult to and retain all the customers any of those customers that you lost do you find you’re able to regain them after they realize that you run a legit business and you’re there to benefit them and help them yeah i mean i think most of the people in the scrap business today i think 90 of the scrap companies are legit now i i think that’s like a lot of people always like oh this person does this on the scale this person does this i i don’t think that those guys and they’re all running legit operations we just have to try to you know out service them we’re open seven days a week we’re open really early in the morning we’re up until later at night the

key for us is just trying to do things that you know the competition isn’t doing because in the end you know price is still going to dictate you know what what comes in but we’re trying to add that little extra special something because some of our yards do 600 cuddlers a day so for the high volume yard you know we have to you know we really have to give a good experience and not make people wait too long things like that gotcha all right well anything else to add anybody or if anyone wants to ask a question i got a question for adam yeah you’re looking back at the yards you’ve bought like say a mom and pop out or green fielded or brown fielded facility if you could i mean do you have a preference or is it just market driven opportunity driven or which which route do you prefer to go well i mean i’ve made a couple mistakes along the way the ones i made the mistakes on which i ended up closing those facilities because they were just burning cash the ones that were in really small markets um those

were ones that i bought you know these were like mom and pops there just wasn’t any customer base enough customer base there so i think that was a big mistake i didn’t pay a lot for them but the companies that i’ve done the best with are the ones that are actually over it makes no sense but the ones that i actually over paid for um were the best ones i put a new shredding plant which is a green field um in newcastle which is near pittsburgh it’s a big shredding operation there and you know the benefit of modern up because you have a customer base but greenfield you can really build it exactly how you want it everything’s brand new and it fits in with a brand better so this year’s pluses and minuses i prefer to do green fields and brand new facilities but i say that but like right now today i’m negotiating with another mom and pop so just you know i just don’t listen to my own advice sometimes i guess do as i say not as i do today all right no i was just curious i just more

than anything because that’s always the way the route that we’ve gone we’ve tried to go the route of buying somebody out and it just and just here something doesn’t work out or my gut just says that’s not the right move or whatever the case may be but i i i not that it could never happen or won’t happen i’m just very cautious from a culture standpoint from a you know just making sure that we are um we’re making the right the right decision i think you’re better to overpay for value than underpay for the deal because in the long run i think the value will will squeak itself out at the end yeah i agree with you like any deal that i stole it and got a great diploma all right well if anyone has anything else to add now is the time i mean i would say too it’s it’s really hard to reconcile their books we looked at a couple ongoing facility facilities that were operational or those that closed down because of cove and just never restarted and it’s just really hard to come to terms with operators and and what

you think is fair market value and what they determine value and and also in terms of just how they reconcile their books um you know not everyone reports everything they’re really saying well my my margins are this my revenue is this and my my noise is this and it just it’s it’s really hard to um hard to do that um we found and i think we’ve tried this so far this year to make you know three acquisitions and they’ve all failed i mean the third one we landed just buying their inventory which is another opportunity but um it’s it’s really hard from a a cultural standpoint or a thing where where it just doesn’t align in how they did things so i’m sure adam kind of talked about that you get in there and you’re like you know you’re going through their books and you’re like what you’re trying to explain this to your team and uh yeah jake’s hundred percent right like any acquisition we’re doing now we don’t even really look at the books i mean the books are worthless basically in the scrap industry to look especially the mom and pops

it’s just i don’t even go through that so you’re really basically we’re we’re towing up the inventory we’re towing up the assets we’re giving some money for what we feel the permit and what it would cost us to you know get approval for that facility and then we’re giving some money for goodwill but you can’t go buy the books i mean that’s just a that’s a disaster waiting to happen yeah i think so too and it’s and it’s just um yeah it’s just completely misleading um especially those that don’t have um you know that if they’re you know if they’re still counting pallets or you know you know if they’re going out there and they’re kind of looking at their pile and saying well maybe i have 250 tons or 300 times but it’s it’s really hard to you know it’s just like well what is it that’s it that’s a big difference and it’s really hard for those that just don’t have like an inventory management system and uh you’ve got and but that’s what you’re gonna run into now and i’m sure adam knows and brett knows better than i do is

just older operators are old school you know they know that well i got 52 skids a well guess what i could put that on a 53 foot dry van and go to the extrusion mill you know and they’re looking at you it’s like it’s not rocket science like but you know for me you’re just trying to understand what they’re sitting on and how they’re valuing it and basically what you bought it for and what you can sell it for and um and uh it’s it’s just extremely difficult and um and it’s just an in an issue that we kind of run into and um and i i think adam’s approach is is really right is you know goodwill um you know the permits because it is really expensive especially for your types of facilities where you’re when you’re you’re you’re dealing with volatile particles or you’re trying to put in a shredder or you know you’re dealing with waterways and there’s some um you know inherent value that can’t be replicated i mean sure and learn the assets um i think there’s better permit today like to get a in a decent site market

would cost to go through the whole environmental a million and a half dollars just for the per yeah before you’re buying any land before you’re buying anything so that’s why sometimes it’s good like to buy a pre-existing because you’re gonna save two years of time you know to try to you know get everything approved i think so too adam and i one of the things i kind of like about it well about fighting to get your permits to get your site approved is that there’s a there’s a barrier to entry not everyone can come into a market and replicate your operation um there’s zoning restrictions there’s just a certain amount i mean the zoning board or or the city council and say why do we need another scrap yard why do we need that is that the best use is that the best use for our tax revenue um so it’s it’s i i think that’s a really good point and it’s one of the reasons that i like this business is because it is so capital intensive not everyone can go out and go do this it can’t yeah i mean sure

you could you could you know buy copper out of your out of your garage and and stack skids and that doesn’t really cost too much i mean you get a shear and a little floor skill from amazon and whatnot but to have anything at scale is extremely challenging yeah this is the postcard and then the cash you know the cash that you need from where you buy to buy the time you sell to the time you proc collect i mean it’s um you definitely need cash reserves in this business when i was younger i had no cash repairs and it like kicked me in the fate like every single day and i think once i got cash reserves i was able to really grow the business that was my biggest mistake when i was younger is expanding without the adequate cash reserve yeah i would i would say even now for me it’s just you want a certain amount of time maybe you want you know 30 days of of you know capital equivalents your cost of goods or you know 15 days or whatever your turnover is but it’s about matching up your

you know your receivables and payables and and balancing your books and moving inventory and and you know kind of like you and brett right now and andy too it’s just your ability to be vertically integrated to get out the door when you need to you know get the get the expensive out the door that’s at 35 that’s not 45 at the beginning of the month blow it out i will say this i’ll i’ll leave that on this end is when i when we built our boise facility we built it mostly just to process handle non-ferrous we were shipping out um mixed loads and i knew to get the best price on any of our non-ferrous the best way for us to do it was to build milk quality loads of 63 61 52 like single item loads it could go anywhere and so i knew i needed space so i made sure i had the space to stack it but the big thing that i that i ran into when i did that was i just didn’t realize how much money i would have to put on the ground to get single

item loads and to go to this mill to we put a wire chopper in in boise you know that was a big thing we did out the gate we still get chopped rear chopping wire and just how much money you have to put on the ground in order to ship you know to get into the non-ferrous game if you really want to get mil direct no direct pricing for me caught me off guard and to where we were like oh we better get a line of credit we’ve never had a line of credit with the bank we’ve always ran cash and then as soon as you get a line of credit you start bumping into the end and you’re like i’m i’m bumping into my line of credit pretty deep and i’m still not to where i want to be so that literally probably took us three years to where we could actually get back to run on cash just because of how much you have to get used to being able to carry that much once a month over and over and then you add another new facility on top of it

you know you better have your ducks in a yeah row cash the cash uh needs are like when we’re loading ships now like in the old days you’re just shipping it daily to the mill but when you’re having to save up like 32 000 time to load a vessel then you got to open up a letter of credit an llc to get paid it’s it’s it’s challenging at times for sure everybody has their own level of it the bigger you get the bigger the level you know the more you need but i think once you get over the hump of getting you know a certain reserve built wherever you feel your comfort level is then i think i feel like it gets a little bit easier to expand because you can afford to take a chance here or there but initially it’s smart to get your balance sheet in order make sure you’ve got the ability to borrow make sure you’ve got the ability to grow and then look for your opportunities well thank you everybody i mean i appreciate it appreciate all the info that all of you bring to the table i

feel like there’s so much people could learn that are like in the scrap industry trying to break in any info they want i think there’s there’s so much information that you guys bring to the table and i appreciate you guys coming on here on your busy day all right thank you dick thank you appreciate thanks guys