Can two brothers leave behind the bright lights of Memphis and find success amid piles of scrap metal in a rural Arkansas town?
Judging by the arrival of people
bringing in all types and shapes of metal — from kitchen appliances to
old cars — and the departure of semitrucks loaded with cut and sorted
steel, Mike and Ted Cochran are doing just fine in Osceola, Ark. (pop.
7,673).
“When we opened up Osceola Iron
and Metal five years ago, we were skeptical at first,” Mike said. “In
year two, prices took a deep plunge and if we were not a family-owned
and operated company we might have gone out of business, like many
others in our industry did at the time. Our overhead was low because we
did most of the work ourselves. Prices improved, a big power plant was
built nearby and we got the contract to buy their scrap metal. In time,
we also landed some big accounts from local manufacturing plants. Since
then things have worked out well.”
“What we have been able to
accomplish here has exceeded our expectations,” Ted said. “We buy a lot
of vehicles. During one period last fall we crushed out about 200 cars;
that’s about 7 million pounds of scrap. Overall, we are processing 25 to
30 million pounds of metal a year, and hope to continue to increase
that number.”
Longtime Interest In Scrap Metal
The brothers grew up in the auto salvage business in Memphis, joining their father’s firm right out of high school.
“While we were always messing around with cars, we developed an interest in scrap metal,” Ted said.
“So when this property in
Osceola, which had been a scrap metal yard since 1960, became available
at a good price, we decided it was time to try something else.”
They quickly realized that scrap metal was a much better way to make a living than the auto salvage business.
“Selling car parts is much more
difficult,” Mike said. “Any time you are dealing with the public and
taking their money, you have a lot of gripes and complaints. In scrap
metal you are paying the customers, so they are usually content. Our
biggest problem is people trying to sell items that don’t belong to
them.”
There are, of course, other
challenges. Recently the brothers purchased an adjoining 4 acres,
expanding their location to 12 acres.
“We needed to get better
organized,” Ted said. “With more space, we are able to go through things
a little better, separate it and upgrade our product. For example, when
we buy a load of metal, some people will throw in items such as
electric motors. We need space to pick out the good stuff. By sorting
material more thoroughly, we are able to increase our profits.”
Excavators Quickly Make Impact
While the additional 4 acres will
help the brothers provide a better product, much of the heavy lifting
for moving and loading the material is handled by a pair of Doosan crawler excavators.
“Four years ago we were looking
for a shear to cut metal,” recalled Mike, “and we found the unit we were
looking for down in Georgia. Turns out the shear manufacturer had five
of his own scrap yards where he had been running Doosan excavators for
years. We needed something to operate the shear, and he really liked how
the Doosan machines worked with his products. At that point we didn’t
know much about Doosan, but figured a person who has been in the business for 40 years must know what he is doing.”
The brothers believe the Doosan
excavator and shear combination does as much work as at least 10 guys
cutting all day with torches.
“We were immediately satisfied
with the DX255LC because we started making money with it right away,”
Ted said. “In fact, the excavator and shear are a key part of our
business, cutting long iron into more valuable short steel. That’s a
major factor in generating profits.”
He pointed out that this
equipment combination is on the job 40 hours a week, with the operator
working in a very comfortable cab with excellent all-around visibility.
“Whether it’s 20 degrees or 100
degrees, it can be hard to motivate yourself to get out there and snip
iron all day,” he said. “With this cab, you get in, turn the heat or air
on, listen to the radio and produce product in comfort hour after
hour.”
After a couple of years of solid
performance by the DX255LC, the Cochran brothers purchased a second
unit, a DX225LC-3. The new Doosan excavator is equipped with either a
magnet or grapple. Both attachments move shredded material.
“The second machine, which we
bought from H&E Equipment Services, the Doosan dealer in Memphis,
Tenn., has worked well for us,” Ted said.
DX225LC-3 Delivers On Demand
In addition to the superior cab,
which is quieter than previous models, other features of the Doosan
excavators that really stand out for the brothers include:
• The 166-hp, 6-cylinder,
iTIV-compliant diesel engine passes the plenty-of-power test every day,
helping the excavator lift all shapes and sizes of metal
• Excellent reliability due to durable structural materials and superior long-lasting components
• The smooth-operating machine
displays very precise control of all operations, including easier and
safer movement of lifted loads
Although they were concerned at
first about parts availability, the Cochran brothers report only good
experience with its parts situation.
“That has not been a problem,” Ted said. “Parts for the Doosan excavators have always been readily available.”
Doosan guarantees machine-debilitating parts within 48 hours, or in most instances the company will pay for a rental.
Having a buyer nearby has also
helped the brothers’ firm be successful. No. 1 and No. 2 mixed iron and
structural iron are shipped regularly to the Nucor-Yamato Steel Company
melting plant located 21 miles away.
“Working with them has been great for us,” Mike said.
Buying metal and processing it
into a saleable product keeps the eight employees at Osceola Iron and
Metal busy. Those eight employees include the two owners.
“We are all workers. Nobody has a position around here; we all have a job,” Mike said.
