At Replayed Renewed Electronics in Billings, Kolbi and Brandon Fox are hoping to boost sales of refurbished TVs, computers and other equipment. It’s a necessary move for the owners of Yellowstone E-Waste, the electronics recycling business that has struggled recently with collapsing prices for scrap and other metals. “We need a new (source) for revenue,” Kolbi Fox said.
The Billings couple opened Replay Renewed in August at 401 N. 15th St. in front of Yellowstone E-Waste, which supplies the store. Yellowstone E-Waste is one of the state’s largest recyclers of electronic equipment, including computers, flat-screen TVs, stereo equipment, cell phones and other goods. The Foxes launched the business about a decade ago, then moved into their current space about two years ago.
The 18,000-square-foot spot was ideal for a storefront retail spot, the couple said. “The retail side was an idea we had two or three years ago,” Kolbi said. The store has a 30-day return policy and cannot guarantee the life span of refurbished items, the Foxes said. Items that can’t be refurbished are sent to U.S. processors, who sell the recycled metal in worldwide markets.
According to the Institute of Scrap Recycling Industries, scrap metal prices hit a post-recession bottom in November 2015, which caused suppliers to hold on to inventory. “2015 was probably the worst year that our members have seen in decades, if not a generation,” said Joe Pickard, chief economist for the Washington, D.C.-based trade group.
The price of copper, a major component of electronics, was cut in half from 2011 to the beginning of 2015, while gold and other commodities also slumped, Pickard said. However, copper prices have surged since the Nov. 8 election, likely fueled by talk of a massive infrastructure building plan from the incoming Trump administration, Pickard said.
At the same time, scrap-metal producers are worried that Trump is signaling possible trade sanctions on China, the largest U.S. trading partner for scrap, Pickard said. China bought about $6 billion worth of U.S. scrap metal last year, according to the Institute of Scrap Recycling Industries. “Things on the commodity front are picking up, but it’s still early on the recovery front. People are still kind of cautious,” Pickard said, noting that large scrap recyclers have consolidated or shut down since prices began falling in 2011.
Others are seeking new strategies to survive, he added. “The most value is in refurbishing. That’s really where they capture their value,” Pickard said. At Yellowstone E-Waste, collections have remained strong at landfill bins in Billings, Helena and Livingston. The Foxes also hold collection events at cities across Montana to boost inventory. The equipment comes to the warehouse in corrugated boxes and is sorted by type and condition. “We have to evaluate each piece and determine whether it’s scrap, usable for parts” or in good enough shape for the retail shop, Kolbi said.
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