Wood Recycling Business Startup

Waste wood is a valuable resource that has many applications. Wood recycling creates jobs while providing an environmental service. The main startup cost involves hiring or purchase of truck and labor wages.

Use casual labor to reduce costs, buy equipment and drive the truck yourself.

Job Description

The job of a wood recycler is to collect waste wood and re-purpose. The wood is collected, sorted, recycled, repaired or re-purposed. The product is sold as is, refurbished or made into usable product.

Types of Recycled Wood

There are different types of wood that can be categorized into 3 sections. We have reusable large timber, short wood and others.

Others refer to contaminated wood, rotten wood, damaged pallets and pieces of wood. Short wood is made into different products and other items. While large timber wood in good condition are sold to builders and furniture makers.

Why Start a Wood Recycling Company

The business offers lots of low tech advantages and small startup. The only downside is the low skilled workforce and high labor costs.

Because waste wood is abundant the business supports government initiatives in an environmentally friendly way. Your company provides comprehensive support for industries that have huge deposit of waste wood on their premises.

You get paid to collect the wood and sell at a huge profit. Waste wood is common in building materials, furniture and industrial applications.

Uses of Waste Wood

Wood is a versatile product with thousands of applications. Waste wood could be cut into firewood and kindling.

Short wood are easily adaptable into boxes, chairs, benches, tables, tiles and building materials.  Pallets could be repaired and sold to haulage companies or departmental stores.

Waste Wood Products

• Kindling
• Firewood
• Chairs, tables, benches
• Bookshelves
• Pallets
• Benches
• Bird cages
• Boxes
• Floorboards
• Doors

Equipment

The primary equipment is a truck to carry the waste wood. You could hire the truck instead of buying one. Other cost considerations are labor, renting a dumpsite and shredding/carpentry equipment.

Locating the Plant

Rent an easily accessible location with large space. The space should accommodate a workshop and you need utilities such as electricity.

Provide a secure outside perimeter to avoid theft on the site. You also need a storage space, loading and offloading area.

Make sure the location has lots of pedestrian and vehicular traffic. You could even open a showroom to showcase your finished products.

Startup Costs

Your business format dictates the amount of money you need. Startup costs for a small wood recycling business starts at $35,000.

This includes purchasing a used truck, rent, casual labor costs, company registration and insurance. Make sure you purchase the right tools for the job such as power tools, saws, hammer and safety equipment.

How wood Recycling Companies Generate Income

Wood recyclers provide a service while smiling all the way to the bank. You can make huge earning doing this kind of business.

There are two ways wood recyclers generate income. They charge companies to collect their waste and sell the wood products.

Collection charges are usually low to incentivize the customer to hire them. Such organizations calculate labor, cleanup and transportation costs and decide that your services are relatively cheaper.

Selling the re-purposed wood is the major cash flow for recyclers. There are a whole range of products such as furniture, firewood and building materials.

Who are your Customers?

Your customers range from households, furniture makers, builders and haulage companies. You can sell to DIY enthusiasts, carpenters, toy makers and companies that use waste wood.