New owner helping CM Shredders thrive

SARASOTA, Fla.—The success shown by CM Shredders before and during the COVID-19 pandemic goes to show that strategic planning and the right partner go a long way toward helping achieve corporate goals.

The Sarasota, Fla.-based manufacturer of industrial shredders and tire recycling systems has seen several changes over the last three years that positioned it to weather the unexpected. After having been a part of a larger conglomerate, the company was sold to Buffalo-based Bengal Machinery in 2018, which turned out to be a great fit.

That's because unlike its previous owner, Bengal Machinery owns other side reduction companies and was interested in investing in the business even while letting the CM Shredders management team run things autonomously. That was a key step, said CM Shredders General Manager Charlie Astifan, who has been with the company for three decades.

"The investments that have happened over the last three years have been critical to our success," he said. "It set us up for the last year."

Those investments have included creating a new website, and spending money on search engine optimization and digital marketing to help drive more leads to the website. That process takes time to yield tangible sales results, but the planning turned out to be invaluable.

CM Shredders went through a slow two-month period when businesses were partially shut down in Florida in spring 2020. But during that time, an influx of leads for future business filtered in through the company's website. Plus, these marketing investments helped attract a higher number of quality leads that are likely to have an immediate impact.

"We had those big backlogs of business and new leads so once we were allowed to operate with safety restrictions in place, it was extremely busy," Astifan said. "We haven't slowed down since."

The company's industrial shredders for tire recycling and industrial waste can be found in almost 30 countries worldwide. A recycler that makes rubber mulch or rubberized playground surfacing from old tires is considered a customer since it might use one of CM Shredders' machines to grind up those tires.

Product line expansion

CM Shredders last year introduced a line of dual shafted industrial shredders, ranging from 10 to 250 HP that offered a less expensive point of entry for start-ups and smaller clients. These industrial shredders were smaller than what the company traditionally offered, which in turn expanded CM Shredders' target market and prospect base.

"They are smaller in stature but very well designed and built," Astifan said.

What is surprising to Astifan is that customers are willing to buy shredders that cost anywhere from $300,000 to $2 million by phone or video, sight unseen. The willingness of customers to buy online is a sea change for the industry, and makes the online and digital marketing investments more critical.

"So, I'm a bit of an old-school guy who was used to jumping on planes and closing deals in person," Astifan said.

Just like any business, CM Shredders has had to manage staff and shift changes because of COVID-19, but the company and its roughly 40 employees have come through unscathed. Most employees are on the industrial floor but are naturally spaced out because of what their roles entail. Others not involved in trades have been able to work at home as needed.

Staffing concerns

Now that the national economy is beginning to pick up even more steam, Astifan's biggest worry is being able to staff the experts he needs to meet customer demand. While he has grown his work force by about 15 percent during the last year, filling factory and skilled labor positions is a weekly challenge. Astifan spends more time than he ever has recruiting and interviewing potential new employees, a trend that had begun before the pandemic.

On top of that, many of his current employees are close to retirement age, and the number of young tradesmen and women looking for jobs as welders, industrial painters, machinists and the like is extremely limited.

"I think the ability to find employees to get the work done is the biggest threat to our future growth," Astifan said. "It may become a challenge to serve our clients at this rate."

Future acquisitions, which are possible under Bengal Machinery's direction, can help. CM Shredders has invested more than $1 million in industrial equipment to increase efficiencies just in the last year. It expanded into the industrial waste sector a few years ago, offering machinery for processing paper, plastics and other recyclables.

After a 10 percent drop-off in 2020 due largely to the two-month slowdown, Astifan says CM Shredders is expecting 15-20 percent growth in 2021.

"We're in a good position as long as we can keep the employees we have and find new ones when we need them," he said.