How much should an industrial shredder cost?

Unsurprisingly, when specifying the requirements of a new industrial shredder, ‘price’ almost always appears on the ‘hit list’. And rightly so – very few organisations have the luxury of money being no object.

This begs the question – how much should an industrial shredder cost? To provide some food for thought, here’s UNTHA UK’s sales director, Gary Moore…

First thing’s first, the ‘price tag’ on an industrial shredder is going to be very different to that of shredding technology intended for an office. When we talk about an industrial machine, we’re referring to heavy duty equipment capable of tackling an array of different and difficult materials – often at high volumes – to achieve what are typically very specific objectives.

UNTHA’s entry-level machine, for example, is the S25 – the smallest shredder ever developed by our Austrian-headquartered engineering team. Supplied as a complete, CE-certified plug and go system, this neat two-shaft shredder with frame and in-built hopper, starts at around £30,000.

Some customers like to break down such figures, so it’s also worth outlining that this clever little machine can handle an array of recycling requirements – not least in the warehouse and logistics industry – for as little as £13.50 per day. It can process a range of materials that an office shredder simply couldn’t handle, including packaging waste, metal swarf, lab test materials, cardboard, and high volumes of documentation. It is also a renowned pre-treatment solution for AD, in the world of organic waste.

When you move into UNTHA’s other ranges, that’s when you start to really see what an industrial shredder can do. There are six models within the four-shaft RS series, for example, which vary in their size and capability, but all are renowned for their durability. Then we’ve got machines such as the new UNTHA ZR pre-shredder, and globally-acclaimed XR shredder, which can tackle complex materials, known for being difficult to process, with ease.

When you start to build a business case for industrial shredders like these, this is when the numbers matter even more. These are high-value assets which can transform what a waste, recycling or alternative fuel specialist can do. They’re not insignificant investments.

However, when evaluating the ‘cost’ of these machines – in fact any such CapEx outlay – it’s important to also consider the ‘hidden’ variables that influence the true financial commitment required to run the equipment.

For example:

  • Ongoing fuel consumption and energy efficiency – how much will it cost to run the shredder (especially given what’s happened with the red diesel fuel duty)?
  • Wear costs include the cost of servicing and maintenance, spare and wear parts and unplanned downtime if the machine isn’t known for its reliability.
  • The expected useful life of the technology.
  • Think about the speed and quality of the vendor’s customer support too, as well as the availability of parts that will inevitably be required. Could you afford to keep some parts in stock, so the capacity of your facility is never jeopardised? Could your cutters even be rebuilt when worn, so you don’t have to buy new?

These factors, and more, will all affect the whole life running costs (also known as lifetime cost) of your industrial shredder, which means a seemingly affordable initial purchase could soon not be the case. Conversely, slightly more ‘expensive’ equipment can quickly shape up to be a far savvier investment. In fact, some UNTHA customers have been known to achieve payback periods in as little as 12 months, either due to the revenue streams they’ve achieved from the sale of their output material, and/or the energy savings they’ve recouped from our electric-driven machines.

While thinking about the topic of money, it’s important to also consider how you are going to procure the shredder:

  • An outright purchase makes sense for some organisations – not least if owning assets is core to how you’ve always invested in new machinery.
  • However, for other operators, a flexible finance package which spreads the cost of the investment, is sometimes the preferred route, not least if it allows the business to invest in a different – potentially more expensive – shredder, that is better for their facility in the long run.

If you’re not sure of the best procurement route for you, talk to us and we’d be happy to walk you through the various options – whether you intend to be an UNTHA Finance customer or not.

In summary, price is always going to be an emotive subject.  You can always find a unit that is cheaper to start with.  But if it breaks down frequently – stopping your production line – it’s costing you money.  UNTHA will work with your budget to build a shredding system solution that is the best fit for your business model.

To discuss this topic in more detail, or if you’d like help building the business case for your industrial shredder, we’re happy to help – it’s in our DNA. Contact us to arrange a chat.

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