Scrapping the Metal Thieves

The Scrap Recycling Industry Is Under Siege From Thieves, But Preventative Techniques Are Combating the Crime

By Brandon Bryn, NCPC Staff

It’s a simple fact: There is, and has always been, a limited amount of resources on planet Earth. Through laws of physics and thermodynamics, we understand that matter and energy is never actually lost — only transformed into different states — and for more than 200 years, the U.S. has embraced the practice of scrap recycling in order to make the most of the precious resources available to us. Today, scrap recycling has evolved into a highly sophisticated and booming industry, playing a large role in the global economy and also the preservation of our environment. According to the Institute of Scrap Recycling Industries, Inc. (ISRI), the U.S. recycles about 150 million tons of scrap materials each year, which translated to a $65 billion industry that employed 50,000 people in 2006. That same year, the U.S. was exporting scrap materials to 143 different countries for a total value of about $15.7 billion. Scrap materials continue to be the second largest American export to China (in dollar value), trailing only behind “electronic components.”

But as the industry of scrap recycling becomes more mainstream, so does the criminal element involved. Regardless of the industry, it seems that wherever there is money to be made, there are also thieves who try to unfairly exploit the situation to their advantage. Within the realm of scrap recycling, this phenomenon has been apparent in headlines recently. The news has been filled with stories of burglaries and thefts related to the recycling industry. Scrap metals, in particular, seem to be an extremely hot commodity on the black market. Thieves across the country are breaking into construction sites, storage areas, buildings like schools and churches, and even recycling facilities in order to steal scrap metal. The stolen metal can then be sold illegally to other scrap processors for a profit.

At its core, scrap metal theft is property theft. But to complicate the situation further, the sources for these types of valuable, recyclable metals are usually found in dangerous places. For example, copper wire, which currently maintains a high market value, is usually found inside of electrical wiring. Consequently, scrap metal thieves are often becoming victims of their own devices, electrocuting themselves during attempted copper thefts.

Thankfully though, there are preventative steps that we can implement to effectively decrease the occurrence of scrap metal theft and its related injuries. ISRI has posted many effective techniques for combating this crime on their website. The largest and most important steps include fostering a good relationship between scrap processors and law enforcement agencies. With clear communication established between these two entities, information regarding stolen materials can flow back and forth quickly and clearly. Law enforcement could potentially alert scrap processors to thefts in the area, while recyclers could likewise notify law enforcement when they think they have received stolen materials. Other important prevention techniques include collecting thorough information on scrap vendors. Scrap processors are advised to record the driver’s license number, license plate number, and to collect the vendor’s signature for each transaction. Maintaining an updated list that assigns unique identification numbers to track each vendor’s transaction could also be beneficial. Another important prevention strategy is present during the payment process, since certain methods of payment can make tracking scrap metal transactions easier than others. Scrap processors should consider paying by check or ATM, with a record of the vendor’s name. For transactions involving cash, scrap processors should at least be sure to get the vendor’s signature on a receipt. The receipt should include a certification that states the vendor is an authorized seller of the scrap materials. Furthermore, scrap processors should consider refusing to purchase certain suspicious types of materials altogether, such as new materials being sold by an individual instead of a company, items used by governments and utilities for very specific purposes (guardrails, manhole covers, etc.), or anything else that is clearly suspicious. Finally, when it’s possible, scrap processors should install video surveillance systems and provide specialized training to their employees about how to identify suspicious materials.

On top of these preventative measures that scrap processors can take, ISRI has also created a Theft Alert System to help track stolen scrap materials across the country. The Theft Alert System allows all parties involved to report information regarding the theft of scrap materials. In turn, ISRI broadcasts this reported information to its email list and notifies all of its contacts in the state where the theft occurred, as well as the surrounding regions. You can find ISRI’s Theft Alert System at www.isri.org/theftalert.

A stellar embodiment of scrap metal theft prevention currently exists in Georgia, where a committed group of stakeholders have actually taken the above strategies a step further, and created their own multi-faceted organization to monitor scrap metal theft and prosecute scrap metal thieves to the full extent of the law. The Macon-Middle Georgia Metal Theft Committee was formed in November, 2006, and has since achieved tremendous results in driving down the number of metal theft incidents in the area. Comprised of an eclectic group of scrap processors, energy and utility companies, homeowners associations, law enforcement officers, and prosecutors, the Macon-Middle Georgia Metal Theft Committee meets about every six to eight weeks to discuss the current state of scrap recycling in the region. At these meetings of about 20 – 30 stakeholders, members of the different organizations are able to share their knowledge and resources with one another to ensure that everything is being done to not only prevent scrap metal theft in the first place, but also to prosecute the criminals who do succeed. The Committee even has members that campaign at the state capitol in order to ensure that legislators completely understand the issue, and that existing laws properly address the crimes.

Since the Committee’s inception, the city of Macon, GA has experienced a dramatic drop in scrap metal thefts. A peak high of 84 metal theft incidents in the month of December, 2006, has steadily decreased to reach its current low of only eight incidents in the month of November, 2007 (see graph below). These results are incredible, and the sharing of information across otherwise separate organizations seems to be the key to success for this Committee. Chip Koplin, co-owner of Macon Iron and Paper Stock, Co. and a founding member of the Macon-Middle Georgia Metal Theft Committee, admitted that every member has a different role to play. “Communication is the key,” he said in a phone interview recently. “We end up sending lots of emails to each other. But we have been so successful because everyone is involved. Everyone has a responsibility. It starts with property owners and their responsibility to secure their own materials. From there, it just continues down the line — all the way to the courtroom.”

Perhaps this model of partnership can be effectively replicated in other regions of the country to decrease incidents of this still-emerging crime trend. If other programs were to experience similar success, property owners, scrap processors, and law enforcement agencies alike would have reason to celebrate. Getting involved with scrap metal theft prevention not only helps to protect citizens’ personal property, but it can also increase brand recognition for a company involved by providing them with a good image to the public. Furthermore, it shows legislators and policymakers that you are serious about deterring this serious crime. Hopefully, the end result will amount to funneling illegal revenue away from criminal enterprises that prey on the scrap recycling industry, and investing it back into the U.S. economy where it belongs.