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ACM Waste Management PLC - The Interview

ACM Waste Management PLC offers UK industry, including manufacturers and retailers, a full selection of bespoke waste management and recycling packages. Formed in 1996, ACM has seen significant growth in demand for its one-stop shop of waste facilities management solutions, including provision of compactors and balers and collection and recycling services. ACM acquired Advanced Compaction Machines Ltd in 2001, enabling it to focus on promoting its all-inclusive waste management Complete Care Programme. ACM's latest addition to its family of businesses is ACM Recycling Technology Ltd, furthering ACM's reputation as a provider of technologically advanced recycling solutions. ACM's clients include Brake Brothers, Dixons, Palmer & Harvey McLane, Whitbread plc, Wm. Morrison and local authorities, NHS trusts and hotel groups. The Grocery Trader spoke to Barry Bolton, Chairman of ACM Waste Management PLC. The Grocery Trader - To set the scene, what are UK manufacturers and retailers' legal obligations for managing waste? Over recent years there's been a sea change in environmental legislation in areas such as animal byproducts, packaging and landfill. Probably the most important legislation affecting retailers and manufacturers is the EU Landfill Directive, introduced in 2003 and being phased in. One initial impact was banning liquids and tyres from landfill. GT - What happens next with the Landfill Directive? From 31st October waste producers must ensure waste is pre-treated before landfill. They have to demonstrate that they have taken steps to reduce, reuse or recycle their waste. In essence, from this date, it will be compulsory for industry to recycle as much as possible. GT - Who enforces these regulations? The main UK enforcers are the Environment Agency and DEFRA. GT - What are the penalties for not managing waste properly? Offenders face unlimited financial penalties and imprisonment proportional to the offence. Everyone recognises the brand value of being green. We're seeing real fear in UK boardrooms. There's no mystery: the opposite of waste is efficiency, and good environmental practice is now well established good business practice. However, with consumers becoming more environmentally conscious, poor PR and stakeholder interest is increasingly a driver to compliance. GT - How big is the UK market for waste management? Total UK expenditure on waste management, including outsourced waste management companies like ACM, and the waste carriers, whose main activity is delivery and collection, is in the region of £11.7billion. For the UK to meet EU targets by 2018, this figure must double. GT - That will take a transformation in attitudes. Yes, UK plc needs to appreciate the link between managing waste and reducing climate change. As waste management specialists we're out to alter businesses' DNA on their attitude to waste. Traditionally waste was buried or burnt, harming the environment, to say the least. People need to see waste as a potential resource. When we talk to clients we get down to basics: we rummage through bins and ask why they're sending this stuff to landfill, and explain how it can be of use if viewed and handled differently. GT - How environmentally friendly are your operations? ACM is the UK's most environmentally friendly waste management company. We offset our carbon footprint 110%, so we're carbon-negative. We're looking to greening our vehicles, and I myself now drive a hybrid. We have low energy lighting, and continually improve our practices. GT - How big is the outsourced waste management market? The OWM market is worth £120m, of which we have £10m. GT - How fast is the market growing? Annual growth is running at 15-20%, as people address their waste management practices' inefficiency. GT - How possible is it to manage waste more efficiently? Very possible! There is vast room for improvement for most operations. One ACM client, Brake Brothers, used a waste broker to buy waste collection services more effectively, but that was where it stopped. We went further by installing more efficient equipment; brokering better; training staff; and diverting waste streams so within months they were recycling substantially more. GT - How did that translate into cash savings? Our solution saves Brakes £50-60,000 annually. But even more important than saving money, we've created and implemented a smarter waste management strategy and established best practice greening their business. GT - Who founded ACM? I founded ACM with Andy Jacobs, the Chief Executive. We worked in an office equipment company, selling fax machines, and decided to go into business together. We wanted to do something that was not only profitable but worthwhile and which we felt passionate about. I've always been interested in sci-fi and where civilisation's going. I've got an Eagle comic from 1958 showing garbage taking over our cities. That is not sci-fi now - it's reality. GT - Who else is in the ACM management team? We've headhunted good people from other companies. David Avenell was Transport Manager at Grundon, where he managed our collections. Now he is our Business Development Manager, a classic 'poacher turned gamekeeper.' Richard Earl, Account Manager, came from Waste Link, a large waste broker. We don't just recruit people from this industry. Mike Rosser, our Sales Director, was a former MD of JWT, the ad agency. We met him through an associate at the IoD. Other key people include Ian Evans, Operations Manager, Doug Lord, Technical Director, and Martin Kentish, our Service Manager. GT - What products do you sell? We're sole UK distributor for Marathon, the world's leading supplier of waste handling and recycling equipment. We also source from European suppliers. We try not to be hypocrites about racking up the product miles, but you need to source the right product from the right location for the customer. We combine all the elements: we were first to introduce solar-powered compactor units here. Ultimately we act as environment champions for our clients. We believe strongly that climate change is inevitable if we don't dramatically change the way our wastes are handled, so we need to move now. GT - How many locations do you have? Our current operational site is in Enfield; consolidation and repair of equipment is at Northweald, where we have 9,000 square feet of workshops but we're just about to move the whole operation to new ideal premises in Waltham Abbey. 'Equipment only' sales are through our sister company, 3R Environment Technology Ltd, in Leyland, Lancashire, run by Steve Almond, our Sales Director and Doug Lord, Managing Director. GT - How do you cover the UK? We have a sales and service network covering mainland UK, and sub contractors in Northern Ireland, and dedicated account managers for our major clients. GT - What technical standards do you work to? We are long standing members of the Environmental Services Association and the Institute of Waste Management, and meet their standards of professionalism. We have ISO9001 accreditation in our office and workshops: ISO14001 will apply to our new premises. We're also Investors in People. GT - What specific waste management services do you provide? Our objective is to act as surrogate environmental managers. We focus on commercial waste streams, including glass, cardboard, pallets, electricals and food. The technology for recycling food waste in this country is still largely underdeveloped. Another growing area is compactors and other equipment for local authorities. We also recycle printer cartridges. We give 2.5% of our profits to worthwhile causes, principally the Zoological Society of London. GT - What equipment do you supply? A major part of our range is small cardboard balers and glass crushers, skip-size waste compactors and roll-on/off hook-lift compactors. The other element is recycling systems - mill-sized balers, large stand-alone vertical balers handling 3 tonnes per day, and complex high volume balers costing £250,000-300,000. GT - What standards are they made to? Our equipment is Kite-marked and complies with EU standards. We also modify kit for additional operator safety and provide operator training on site. GT - What does your 'Complete Care Programme' involve? We believe most of our clients want to focus on their core business, but waste is a growing concern, legally and financially. CCP provides a complete one-stop shop, starting with an audit of current waste production and associated costs and problems. We then look at where the customer wants to be operationally, plus waste streams analysis and alternatives. We follow this with a proposal detailing the equipment needed to achieve waste reduction targets, plus the necessary training programmes. CCP also gives clients a single point of contact, 08700 777 555. Other benefits include advance warnings on waste management issues, drawing on our membership of the Parliamentary All Party Climate Change Group. GT - Do you offer any IT applications to help clients manage waste better? We have spent the last two years developing our WOSP (Waste Operations Service and Plant) software, which goes live in June. This is web-based and manages clients' waste management information. They can access bespoke WM reports and have a snapshot of individual sites. WOSP is a data capture tool, but doesn't absolve waste producers from the duty of compliance. GT - What size of manufacturers and retailers are your target customers? We serve high volume waste producers spending from £20,000 to £1m annually on getting rid of waste. Anyone spending £300 upwards per week per site on waste can benefit. GT - How many live clients do you have? We have 1,016 live accounts, including 400 multiple-site accounts. GT -What do you do for specific food, drink and grocery clients? We provide a Complete Care Programme (CCP) for Palmer & Harvey McLane. We surveyed 19 sites and prepared bespoke proposals for each, consolidating the solution with an account manager. We minimise waste going to landfill and develop best practice including carbon footprint reduction. We've done the same for Brake Brothers, including food waste, at 62 sites. We provided a CCP for Safeway, and supply equipment and broker waste services for Morrison. We also supply Marriott International hotels with a CCP. The trend is for retailers to segregate waste materials at store level and send them back to their RDCs, and get suppliers to backhaul from there, an area where we can help. GT - Do you publish customer case studies? Yes, on our website www.acmplc.com. GT - How much capacity do you have to handle more clients? Plenty! WOSP tracks every aspect of waste management operations, and enables us to manage many more clients. GT - Do you have any overseas clients? There are none at present, but with WOSP we could start working outside the UK and consider franchising here. GT - What are the business benefits of your services? We deliver cost savings - at least 20% in 80% of cases, sometimes up to 90% - and improved environmental credentials. Our clients increasingly demand greener supply chains. Good waste management also improves staff morale. Some clients look at the cost savings first, but generally the primary drivers are environmental performance and being seen to be green. GT - Do you offer waste management guidance to non-clients? We offer WM guidance as part of our audits, and we're looking to extend this to offer 'greener path' consultancy to clients and non-clients. GT - Are there any materials you will not dispose of? We won't handle nuclear material or certain hazardous waste. GT - Will you do bin removal? Yes, if required. GT - How long can it take from first conversation to recommendation? It generally takes four to six weeks. The audit can take a few days; delays arise getting existing service information from the client. There's no standard practice on invoicing, and contracts vary widely. GT - How long from go ahead to 'going live'? Again, four to six weeks per site. GT - Who is your client contact day to day, and who decides to buy your services? Increasingly general managers lead the day-to-day management, but it varies. Contract signature is usually the finance director or procurement. GT - Is there a customer service 'hot line'? Our offices are manned 7.30am-6pm weekdays: our hot line 08700 777 555 provides a call back service at other times. If clients call before noon, we can collect waste the next day. We attend breakdowns the same day. GT - Can people progress within ACM from operatives to management? Yes, there are plenty of opportunities for internal promotion, and as we expand they will grow. GT - Are the waste management laws likely to change further? People need to understand landfill's days are numbered. If waste producers do nothing, their waste disposal bills will escalate dramatically. UK landfill tax will rise from £24 per tonne to £32 from 6 April 2008, continuing until we reach parity with Europe. The gate disposal fee is £55 per tonne, next year rising to £65. Elsewhere in the EU it's in the region of £120 per tonne. Currently 73% of our waste goes to landfill and the rest is recycled. The figures are reversed in Continental Europe, where they don't have the landfill space and recycling is mandatory for waste streams such as food. Landfill sites in Holland are being dug up and mined. GT - Finally, where do you see ACM going from here? My goal is to ensure ACM stays at the forefront of change in UK waste management practice. The concept of "waste" as something to throw away is central to the climate change problem. If we can handle waste effectively there's hope of doing the same with climate change. Waste exists as liquid, solid or, when burnt, gas. If we remember that, we can solve the problem! GT - You're a passionate advocate. How does this passion translate into a business plan? My personal objective is to increase our profits and market share and become the UK's biggest waste management service provider. There's a tremendous opportunity, underpinned by legislation driving clients to action, which will enable us to grow to £30m turnover by 2012. ACM Waste Management PLC Tel: 08700 777 555 www.acmplc.com