The beginning of a new year is an opportunity to evaluate shifting business conditions and consider areas you can adapt and improve the efficiency and profitability of your scrap business.
The year ahead will have challenges and opportunities for scrap metal recyclers. Increased demand for valuable metals, the loss of the penny, evolving regulations and rapid advances in technology are some of the developments and conditions impacting scrap metal recyclers this year.
In Part 1 of this blog, we explore three possible 2026 resolutions for scrap recyclers to be prepared for change, improve operations and increase efficiency and profitability.
1 – Offer Cash-Free Payments
Last November, the U.S. Mint ended its production of the penny. With dwindling pennies in circulation, scrap yards will need to make adjustments to pay retail vendors in cash, creating a new cash complication. Additionally, higher copper prices this year could bring an increase in retail vendors, which means scrap yards will need more cash on hand. As most scrap recycling businesses know, more cash carries more risk.
ScrapWare has a solution for scrap metal recyclers. It has developed a cashless payment system its customers can use to replace, or use in addition to, their payments by cash and check.
ScrapWare’s Paysign Interface
The scrap metal recycling industry relies on a steady flow of cash or checks to pay retail vendors, but there are many benefits to going cashless or adding cash-free options to your scrap metal recycling business. ScrapWare is offering an interface that allows its customers to pay vendors using reloadable Mastercard® prepaid cards instead of cash or check. ScrapWare has teamed up with Paysign, a leader in the cashless payment industry, to provide this digital payment option.
“The new ScrapWare interface with Paysign will help our customers address this increased need for cash to pay vendors and help our customers address the loss of the penny. It will put our customers on the cutting edge of the shift to digital payments at just the right time,” said Joe Floam, president of ScrapWare. “As our economy moves to more cashless transactions, ScrapWare customers will have the tools they need to be ahead of the game.”
Benefits of using the cashless Paysign interface:
- Eliminates on-premises ATMs, cash dispensers and their associated maintenance costs.
- Your vendors can use a network of local external ATMs to get cash or use the cards anywhere Mastercard is accepted online or in person.
- Eliminates the risk of cash theft by robbery or dishonest employees.
- Eliminates the inconvenience, expense and risk of picking up cash or having it delivered from the bank.
- Your vendors have convenient, flexible, secure, and immediate access to funds.
- Your vendors have access to Paysign’s 24/7/365 bilingual Customer Care should there be any issues with the card.
- Eliminates the possibility of fraudulent checks.
Features of the Paysign interface:
- A Paysign Mastercard prepaid card can be customized to include your business name and logo, to serve as an advertising opportunity for your company.
- The Paysign mobile app enables your vendors to find the nearest in-network ATM, securely manage their cards, and view their real-time account balance and activity.
Paysign solutions are fully developed and tested, making them launch-ready programs you can have up and running quickly.
2 – Increase Employee Retention
Looking at the year ahead, workers are still in an economy in which they are seeking better pay, benefits, conditions, and flexibility. Experts say reducing employee attrition boils down to one thing: creating an attractive place to work. Here are some measures to help achieve that goal:
• Provide opportunities for growth.
Studies reveal that one of the best ways to show employees that you value them is by offering plentiful opportunities for learning and advancement. Whether it’s specialized software training, an online course, or a mentorship session, professional development gives employees the chance to learn and flourish.
• Deliver a better work experience.
Efforts to improve workplace culture are always smart investments. Regardless of their role or industry, employees are seeking purpose. The best organizations blend a sense of purpose with opportunities for workers to contribute to something greater. Take steps to foster connectedness by educating each person on the positive influence the recycling industry has on the world.
• Utilize employee-friendly tools and processes.
Explosive turnover creates unique challenges, including new workers who are on perpetual learning curves. Every job is more difficult when the tools are complicated and the processes unwieldy. In the recycling sector, firms turn to ScrapWare for simple, straightforward recycling software that gets the job done. ScrapWare becomes part of the solution because it’s easy to learn and use, especially for novices. Designed with the end-user in mind, its intuitive interface streamlines even the most complex processes, seamlessly integrating them into daily workflows.
• Offer ample support.
Left to their own devices and without adequate direction, workers can quickly become overwhelmed and disengaged. This is particularly true for new employees who are trying to learn and adjust to new technologies and procedures. Seek out technologies that are user-friendly and offer exceptional service. ScrapWare offers renowned customer care and support that are unparalleled in the industry. When issues arise, the help desk is always available to provide friendly, knowledgeable assistance. At ScrapWare, no appointments are necessary for customer service. Support is available 24/7 with multiple support channels via email, text, or phone.
3 – Go Paperless
The upcoming year is expected to bring even more opportunities for efficiency using technology. Moving your business away from paper to digital documents is a critical step to remain competitive. Making this digital transformation with new systems requires planning and investment. As a mechanism to save time and money, the benefits of going paperless are numerous.
• Streamline and Accelerate Important Business Processes.
Digital documents can be moved from person to person more quicky than paper documents. They can be viewed by many people at the same time, and mistakes are more easily corrected.
• Simplify Interactions with Vendors and Customers.
With online documents, customers and vendors can access them when it is convenient from any location. They can sign paperwork digitally and print copies when needed.
• Make Finding Documents Faster and Easier.
If documents are stored digitally, it is easier to find them online instead of digging through file drawers. Answers to inquiries are available at everyone’s fingertips.
• Save Time.
Electronic documents are faster (and cheaper) than paper documents to edit and redistribute to customers, vendors and employees. This cuts down on bottle necks and reduces approval cycle time.
• Protect Documents.
If documents are electronic, they are protected from getting lost or damaged from fire, flood or theft.
• Improve Security.
Confidential data or sensitive information is much more secure stored as an electronic document on an off-site cloud server.
With a paperless system scrap metal recyclers can also benefit from improved compliance with state and local laws. Having stored digital images of licenses, signatures and fingerprints can help companies work with authorities and comply with anti-theft regulations.
These benefits have fueled the move to go paperless. While going completely paperless can seem overwhelming, the good news is that no company must go paperless completely or overnight to reap the benefits. Progress can be made incrementally.
Below is a list of ways scrap metal recyclers can reduce reliance on paper:
1. Store documents and files digitally, in the cloud.
Important files and documents can be saved and accessed anytime using online storage.
2. Use electronic communication.
Almost everyone now uses e-mail, but other types of electronic communication may also help reduce paper and improve efficiency. Instant Messaging platforms like Skype or Slack can be used among employees to improve efficiency for internal communication. A company can request electronic billing from vendors, use electronic invoices for customers, and electronic calendars instead of paper.
3. Copy documents with scanners and apps.
As a company seeks to decrease the volume of paper in its office, existing important documents can be scanned and uploaded for digital storage.
4. Move financial transactions to the digital realm.
Digital receipts, direct deposit and other electronic financial transactions are cheaper and safer than paper and checks, and they are easier to track for bookkeeping purposes.
5. Use e-signatures.
Signing contracts no longer requires printing out documents to obtain signatures. E-signatures are legally binding, but are significantly more efficient, convenient, faster to use, safer and more secure than obtaining a traditional signature. For scrap metal recycling businesses, ScrapWare Corporation offers a software package that facilitates the use of e-signatures for all contracts and documents.
ScrapWare software can help recycling companies pursue these and other initiatives to meet the challenges of the year ahead. Stay tuned for the second installment in our series on ways to increase efficiency and profitability in 2026 and beyond.
This card is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard, and is serviced by Paysign, Inc.
*Apple and App store are trademarks of Apple Inc., registered in the U.S. and other countries. Google Play and the Google Play logo are trademarks of Google, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd.
About ScrapWare Corporation: Since 1989, Rockville, Maryland-based ScrapWare Corporation has been the software of choice for the recycling industry. Its ease of installation and simplicity saves users time and money while helping them achieve compliance and maintain accurate business insights. With state-of-the-art functionality tailored to each organization’s unique requirements, ScrapWare is an advanced dynamic software solution that alleviates the most pressing recycling industry worries. For more information, please call (301) 517-8500 or visit https://www.scrapware.com/.