What should I ask about a scrap yard’s yard layout and sorting bins?

Start with the walk. Stand where the trucks queue and watch one load from the gate to the pile. Count the handoffs and notice where people wait. A yard that works around its own layout, with workers carrying things by hand or equipment idling, is telling you something about hidden labour costs.

Next, ask about the sorting itself. Who trains new staff to tell one grade from another? Are bins labelled, and do the labels match what the crew actually does? Ask to see a bin that was recently rejected or downgraded by a buyer of the material, and what changed afterward. Mixed or contaminated bins are where margin leaks.

Then ask about capacity and ownership. Is there room to add a bin if volume grows, or is every corner used? Ask which bins, dividers, pads and fences belong to the yard and which are leased or loaned. Your lawyer should confirm what transfers, and the due diligence steps from the business bank’s guides help you organize the questions. Finally, ask what the seller would change in the layout with unlimited time, since the answer shows which bottleneck costs the yard the most each week.

Key takeaways

• Watch one load move from the gate to its bin before you ask anything else.
• Ask who trains the crew to sort, and what happens to rejected bins.
• Get a written list of every bin and divider that transfers with the sale.