Drywall Economic and Market Feasibility Study

Transcription

1 Drywall Economic and Market Feasibility Study Minnesota has a unique situation in the generation of its drywall construction debris. The drywall subcontractors at most production builders are typically required to include the cost of clean-up and disposal of waste drywall when bidding a construction job. This results in the drywall waste being disposed of separately from other construction debris. This is not necessarily a common practice in other states, and creates the opportunity to recycle a clean, source-separated material. Even though it was shown in Demonstration Project Number 1 that gypsum drywall was not beneficial to soils on those particular job sites, it has great potential for use in the agricultural industry. Gypsum drywall is comprised of the mineral calcium sulfate dihydrate (Ca 2 SO 4-2H 2 O) and a paper backing. Virgin gypsum is commonly used to provide nutrients for agricultural purposes already. It can be both a source of sulfur and/or a source of calcium. If drywall is used as a gypsum source, it must be crushed and screened prior to application. Three demonstration projects in Florida showed that a trommel screen works most efficiently for this process (IRG, 2001). It crushes the drywall while screening out and removing some paper at the same time. This can be a dust generating process, so air calculations similar to those completed for Demonstration Project Number 1 may be required by the MPCA. However, just as in Demonstration Project Number 1, the potential to emit particulate matter would not be expected to exceed threshold limits. A successful drywall processing and recycling operation exists in nearby Wisconsin. A facility associated with Alberts Plastering, Inc., in Door County, Wisconsin, processes drywall and distributes it to local farmers in various surrounding counties. Because of proprietary reasons, no details of the facility could be provided in this report; however, tipping fees for the drywall range from $30-$60 per ton. The facility picks up the drywall from the construction site, processes it and sells it directly to farmers (Brey, Personal Communication, 2002). One of the most significant obstacles for this recycler was getting subcontractors to separate drywall from the other construction wastes. This took more than a year of training by the recycling facility. This obstacle would be minimized in Minnesota because drywall is already being separated at many job sites. An economic feasibility study was conducted on the recyclability of gypsum drywall in the SWMCB area. Research by URS showed that soils in Minnesota need sulfur as an amendment in the area roughly from Hudson, Wisconsin to St. Cloud, Minnesota. Potato crops especially need sulfur, and gypsum is a suitable source because it does not raise the ph levels of the soil (Schmitt, Personal Communication, 2002; and Minks, Personal Communication, 2002). According to Memo #1 (see Appendix A), there was a total of 170,000 tons of construction waste generated in Minnesota in Memo #1 also indicated the percentage of drywall in the waste to be 5 to 7% by volume. Demonstration Project Number 1 found the percentage to be 7.7% by volume. Using a conversion factor developed by the University of Florida in which C&D debris bulk density is 0.24 tons/cubic yard (Townsend 1999), the total volume of waste produced in 2000 was 708,333 cubic yards. If drywall is approximately 7% of that at 500 pounds per cubic yard, then the amount of drywall produced is approximately 49,600 cubic yards or 12,400 tons.

2 The United States Department of Agriculture (USDA) reported 66,000 acres of potatoes planted in Minnesota in 2000 (USDA, 2000). As an example, if sulfur was applied at 12 pounds per acre and gypsum is 17% sulfur, the potential demand for gypsum would be 71 pounds per acre or a total of 2,343 tons of gypsum. Gypsum may be applied alone or in conjunction with other fertilizers. Ground drywall may be applied in the same manner as virgin gypsum. The 2,343 tons of gypsum is approximately 19% of the gypsum waste produced from construction. Demand for gypsum is a necessary component of the recycling process. This is only an example amount used for potatoes; however, other areas and crops may utilize gypsum as well. If only 19% of the drywall waste is in demand, it may not be sufficient to make the process economical at a central facility. In that case, gypsum may need to be marketed to other entities as well. This economic analysis follows costs laid out in an EPA document titled, Materials Recovery of Municipal Solid Waste, in which design and cost guidelines are provided for engineers and designers. The costs in the document were given in 1991 dollars. The costs were brought to present value (2003) using a 4% inflation rate. The facility (building) construction costs were calculated from the Engineering News Record website, where a building construction cost calculator is available. The assumptions made for the structure construction are provided in the attachments of this appendix. However, this economic analysis did not take into account inflation for the annualized cost of the equipment and building. The cost of the trommel screen (capital and operations and maintenance (O&M)) were taken from previous research conducted at the University of Florida and used in the drywall Innovative Recycling Grants (IRG, 2001). The cost of the recommended loader (not an endorsement) was obtained from Tristate Bobcat, Inc. The S250 Bobcat operates as a regular skid steer; however, it has a vertical lift option that allows it to load the trommel screen as well as the trucks at the facility. The O&M costs are from dairy facility waste management on-farm composting systems examined by the Cornell Waste Management Institute (Crone, 2002). The processed drywall may be spread directly by a regular agricultural amendment spreader. Labor for this scenario was assumed to include one supervisor and two facility operators. The cost estimates are from the EPA document described above, adjusted to 2003 rates. The pay and benefits include social security, vacation, sick leave and insurance. The insurance costs of the facility include worker s compensation, liability and property. Other operation costs include power, heat, and building maintenance. The tipping fee estimated for the drywall waste at the facility is $5.50/cubic yard. This is a competitive rate for the SWMCB area. The cost of the gypsum to the retailers was discussed with an actual retailer in Minnesota (Tobkin, Personal Communication, 2002). The rates paid for virgin gypsum at a generic location (assuming 200 miles round-trip) is approximately $58/ton. For a 400-mile round trip location, the rate is $68/ton. An estimate of $55/ton was used in the economic analysis (for the 200-mile round trip location) to ensure the recycled drywall would be $3/ton cheaper than the current cost of gypsum. Residual disposal was not taken into account for this cost estimate because the

3 incoming stream is considered to be only clean drywall and the paper does not have to be removed for agricultural purposes. Any potential residual disposal would be insignificant to costs and is therefore not included This economic analysis shows only a $9,000 profit margin for a recycling facility. This is a small margin and an actual facility may not even break even with actual costs. In this scenario, the trommel screen is not operated at maximum throughput, and processing and selling more drywall could make the facility more profitable; however, the 20 tons per day is already double the estimated demand of 2,343 tons/year to the farmers. Other options for a recycling facility include selling the product directly to farmers (to increase profit margins) and using a less sophisticated grinding system. Also, if another recycling operation was already constructed or the labor was shared with a landfill (or other facility), the analysis could become more economical. Although this recycling scenario found that it might be economically feasible for a central facility to process and distribute gypsum drywall to agricultural amendment retailers, current and future demand for gypsum, further market development, and testing should be explored in detail. REFERENCES Brey, Bill (2002). Alberts Plastering, Inc., Door County, Wisconsin, Personal Communication, December 23, Crone, T., Staehr, A.E., Moffe, M., Haith, D., (2002). Evaluation of Co-Composter Results Versus On-Farm Composting Systems, accessed December 26, Engineering New Record (ENR) (2002). Commercial Cost Estimating Service, website accessed December 26, Innovative Recycling Grants (IRG) (2001). for Okaloosa, Citrus, Putnum Counties and the New River Solid Waste Association, Recycling of Discarded Gypsum Drywall in Florida, a report submitted to the Florida Department of Environmental Protection, prepared by the University of Florida Dept. Environmental Engineering Sciences. Minks, Bob (2002). Crop Production Retailers Association, Personal Communication, November 8, Schmitt, Michael (2002). Professor, Soil, Water and Climate, University of Minnesota, Personal Communication, November 8, Tobkin, Neil, (2002). Agricultural Product Retailer, Personal Communication, November 14, 2002.

4 U. S. EPA, (1991). Handbook Material Recovery Facilities for Municipal Solid Waste Office of Research and Development Washington, DC 20460, EPA625/6-91/031, September Tristate Bobcat, (2002). Bill Quirk, Personal Communication, December 26, 2002.

5 Cost Assumptions Reference This reference lists factors that are included or excluded in an estimate calculation. What the Costs Contain 1. In Commercial Estimator, the costs are final costs to the owner and include average architect's and engineer's fees. These, in turn, include plans, plan check and building permits, and surveys to establish building lines and grades. 2. Normal interest on only the actual building funds during period of construction and processing fees or service charges are included. Typically, this averages half of the going rate over the time period plus the service fee. 3. Appropriate local, state and federal sales taxes, GST taxes, etc. on material and/or labor costs are included. 4. Normal site preparation including finish, grading and excavation for foundation and backfill for the structure only. 5. Utilities from structure to lot line figured for typical setback. 6. Contractor's overhead and profit including job supervision, workmen's compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc., are included. What the Costs Do Not Contain 1. Costs of buying or assembling land such as escrow fees, legal fees, property taxes, right of way costs, demolition, storm drains, or rough grading, are considered costs of doing business or land improvement costs. 2. Pilings or hillside foundations must be priced separately and are considered an improvement to the land. This also refers to soil compaction and vibration, terracing, etc. 3. Costs of land planning or preliminary concept and layout for large developments inclusive of developer's overhead and profit or entrepreneurial incentive are not included, nor is interest or taxes on the land, feasibility studies, certificate of need, E.I.R., hazardous materials testing, appraisal or consulting fees, etc. 4. Discounts or bonuses paid for financing are considered a cost of doing business, as are funds for operating start up, project bond issues, developmental overhead or fixture and equipment purchases, etc. 5. Yard improvements including signs, landscaping, paving, walls, yard lighting, pools or other recreation facilities, etc., which can be priced separately. 6. Off site costs including roads, utilities, park fees, jurisdictional hook-up, tap-in, impact or entitlement fees and assessments, etc. 7. Furnishings and fixtures, usually not found in the general contract, that are peculiar to a definite tenant, such as seating or kitchen equipment, etc. 8. Marketing costs to create first occupancy including model or advertising expenses, leasing or broker's commissions or temporary operation of property owners associations.

6 Preliminary Service Estimate Estimate Results Below is final calculation given the following information. DISCLAIMER: The construction costs in this report are based on labor and material costs collected by Marshall & Swift. Efforts have been made to use the most credible data available in the preparation of this report and reasonable care has been exercised in the use of the data supplied to create this report. However, no guarantee is given nor implied with respect to the correctness, value and sufficiency of the data and other information contained within the report as applied for any particular purpose or use. Project Information Drywall Recycler MN 5,000 Total Square Feet 1 Floor Assumptions: Building Shape: 2 - Rectangular, or slightly irregular Construction Quality: Average (2) Average Story Height: based on Occupancy Heating & Cooling: based On Occupancy No Sprinklers No Elevators Exterior wall based on construction type Slab on Grade No basement Interior Finishes and Plumbing & Electrical Based on Occupancy Section 1 Information Storage Warehouse 5,000 Total Square Feet (100.00% of total) Metal frame and walls Total Cost $165, Square Foot $33.06 per Square Foot Cost

7 SKID-STEER LOADER SKID-STEER LOADER VERTICAL LIFT PATH

8 SKID-STEER LOADER Power Straight Up! The S250 is a natural for working in construction, landscaping, nurseries, masonry, concrete, agriculture and many other applications. Powerful, vertical-path lift arms deliver straight-up strength an impressive 2,500-pound rated operating capacity. With that kind of muscle, you can easily handle big loads. And the S250 s reach of 34 inches and lift height of 10.5 feet make loading trucks fast and effortless. Vertical-path lift arms raise heavy loads to new heights! Vertical-path lift arms make Bobcat S250 and S300 loaders the perfect tools for jobs requiring added reach and lift height. The vertical lift path provides more reach at full lift height than a radius lift path, without any decrease in performance. That s why vertical lift path loaders make it easy to load high-sided truck boxes and hoppers. Vertical-path design is also ideal for placing pallets especially when they re loaded with heavy materials like brick, block or sod. You get extra hydraulic power, too. The high-flow option package provides an added 10 gpm of hydraulic flow, for a total of 30.7 gpm. This, along with 3,300 psi system pressure, allows you to operate special high-performance Bobcat attachments, including the chipper, planer, concrete pump, stump grinder and trencher. SKID-STEER LOADER The Truck-loading Loader! Designed to deliver more power for more lift, the S300 is the ideal machine for any application requiring strength and lifting ability. With its 3,000-pound rated operating capacity, the S300 makes easy work of heavy loads like pallets of sod, brick and concrete blocks. And with its vertical-path lift arms, 34-inch reach and 10.5-foot lift height, loading material into tall trucks is a snap. The S300 s impressive four-wheel-drive power comes from a big 81-horsepower turbo-charged, liquid-cooled Kubota diesel engine. It delivers all the strength you need when you need it.

9 Great view! The redesigned structure and lift arms of the S250 and S300 give you excellent visibility to the front and rear tires. This is important when you re working close to walls or fences, maneuvering around concrete forms and grading stakes, or backing onto trailer ramps. Tops in operator comfort! The advanced cab on the S250 and S300 is designed to keep you comfortable as well as productive. Easy entry and exit. Roomy interior. Conveniently-placed controls and gauges. Adjustable cushion seat. Seat belt. Seat bar. Air conditioning (optional). Cab heater (optional). Rated Operating Capacity Lift Height Reach Turbo-Charged Diesel Engine Auxiliary Flow / High Flow S250 2,500 lb in. 34 in. 75 hp 20.7 / 30.7 gpm S300 3,000 lb in. 34 in. 81 hp 20.7 / 30.7 gpm

10 Bobcat Engineering sets the standard for operator-friendly performance! Bobcat loaders deliver a wide range of innovative operator-friendly features and exciting value-added options. Left Side Standard Instrument Panel Right Side Standard Instrument Panel Optional Deluxe Instrument Panel State-of-the-art instrument panels provide dozens of operational features, diagnostics and monitoring. Optional deluxe instrument panel includes keyless start security system, feature lockouts, digital time and job clocks, multi-language display, even a help menu. More Operator Comfort The optional, fully-adjustable suspension seat allows comfortable all-day operation. The innovative seat bar pivots from the rear, providing secondary restraint protection and serving as a comfortable armrest for operators of all sizes. Climate-Controlled Cab High-visibility front door with 49% more glass includes wiper and washer. The cab enclosure with top, rear and side windows, will completely seal the cab for efficient use of heater or the air conditioning option. The Bobcat Standard Combine these outstanding features with ease of operation, versatility, maneuverability, wide choice of attachments, worldwide dealer support, service backup, parts availability and high resale, and it all adds up to: Total value that can t be matched. Bobcat compact equipment always gives you more: Innovators in compact equipment Better built to last longer World class service More value for your money

11 More value for your money than any other brand in the world! Belt Drive Advantage The Bobcat belt drive advantage means Bobcat loader engines can be run slower, resulting in a quieter machine that lasts longer and uses less fuel. This system also maximizes pump efficiency and minimizes steering lever effort. Ask about the 3-year belt warranty! Clean Cooling The exclusive Bobcat dual path cooling system brings clean, cool air from above, through the engine and hydraulic oil coolers, mixes it with engine compartment air, then exhausts it out two side vents. Built-In Safety The S250 and S300 give you the latest in safety technology the Bobcat Interlock Control System (BICS ). BICS requires the operator to be seated in the loader with the seat bar in place and the engine running. After the operator presses the press to operate loader button, the hydraulic lift and tilt functions and traction drive system can be operated. Serviceability Bobcat serviceability is unsurpassed. Simply open the swing-out tailgate for full access to the engine s checks and fills, filters and battery. And unlike other brands, the lift arms need not be raised to service the machine. Shop time is spent repairing, not gaining access. Operator Training Training kits, available through your Bobcat dealer s parts department, let you train current and new operators and service technicians on the latest safety operation and servicing functions on Bobcat loaders. A Spanish language version is also available. Check the Bobcat website for more information: Exclusive Bob-Tach System For fast, secure attachment changes. Bob-Tach frame (A) moves into attachment flange (B) handle (C) pushes down easily, pressing wedge (D) through frame and attachment hole for solid connection. Power Bob-Tach available! Choice of Attachments As with any Bobcat loader, you can count on a variety of quick-mounting Bobcat attachments for your S250 and S300. The operator can easily replace a bucket with a backhoe, pallet fork, landscape rake, sweeper, tiller, grapple and many more attachments. Hookup is easier with the optional Power Bob-Tach! Worldwide Support. With the Bobcat S250 and S300, you get more than exceptional loaders. You also get the support of a worldwide network of Bobcat dealers offering industry-leading attachments, accessories and parts availability. Their factory-trained service technicians are equipped to handle all your parts and service requirements, including engine and hydrostatic/hydraulic components.there s an excellent warranty program, too. Get all the details from your Bobcat dealer.

12 Bobcat S250 and S300 Skid-Steer Loader SPECIFICATIONS Performance Rated Operating Capacity lb. (1134 kg) 3000 lb. (1361 kg) Tipping Load 5000 lb. (2268 kg) 6000 lb. (2722 kg) Hydraulic Pump Capacity 20.7 GPM (78,4 L/min.) 20.7 GPM (78,4 L/min.) High Flow Option 30.7 GPM (116,2 L/min.) 30.7 GPM (116,2 L/min.) Travel Speed 7.2 mph (11,6 km/hr.) 7.2 mph (11,6 km/hr.) Two-Speed Option Low Range 7.2 mph (11,6 km/hr.) 7.2 mph (11,6 km/hr.) High Range 12.5 mph (20,1 km/hr.) 12.5 mph (20,1 km/hr.) Operating Weight 7723 lb. (3503 kg) 8140 lb. (3692 kg) Dimensions Length (with bucket) in. (3630 mm) in. (3630 mm) Width (with bucket) 74.0 in. (1880 mm) 74.0 in. (1880 mm) Height 80.9 in. (2055 mm) 80.9 in. (2055 mm) Height to Bucket Pin in. (3211 mm) in. (3211 mm) Engine Make/Model Kubota/V3300T Kubota V3300T Fuel/Cooling Diesel/Liquid Diesel/Liquid Cylinders 4 4 HP/Displacement 75.0 hp/ in hp/ in. 3 (56,9 Kw/3,318 L) (60,4 Kw/3,318 L) Fuel Tank Capacity 25 gal. (94,6 L) 25 gal. (94,6 L) Operation Steering and Drive Hydraulics Transmission Standard Features Options/Accessories in. (4077 mm) 41.9 S250 S300 Forward, reverse, travel speed and steering controlled by two hand levers. Raise/lower lift arms and dump/rollback bucket controlled by two foot pedals or optional hand controls. Hydrostatic, four-wheel drive. Adjustable Cushion Seat Automatically-Activated Air Intake Heater Bobcat Interlock Control System (BICS ) Bob-Tach Deluxe Cab Dual-Path Cooling System Engine/Hydraulic Systems Shutdown Front Auxiliary Hydraulics Advanced Control System (ACS) Air Conditioning Alarm Package (backup alarm and horn) Attachment Control Kit Bobcat Heavy-Duty Offset Tires Bobcat Severe-Duty Tires Bobcat Severe-Duty Poly-Fill Tires Bobcat Super Float Tires Cab Enclosure Cab Heater Catalytic Purifier Counterweight (S250) Deluxe Instrument Panel Flasher/Strobe/Rotating Beacon Lights 96.1 Front & Rear Lights Gauges/Warning Lights Lift Arm Support Operator Cab Parking Brake Seat Bar (available for all Bobcat loaders) Seat Belt Bobcat Heavy-Duty Tires Turbo-Charger (approved spark arrestor) High-Flow Auxiliary Hydraulics Package Hydraulic Bucket Positioning 2 Power Bob-Tach Rear Auxiliary Hydraulics Service Safety Training Kit Side Windows Skid-Steer Loader Operator Training Kit Sound Option Special Applications Kit 3 Suspension Seat (vinyl or cloth cover) Top & Rear Windows Two-Speed 74.0 in. (1880 mm) 84.2 in. (2139 mm) in. (4077 mm) MORE LIFTING POWER! With vertical-path lift arms, these two loaders are made for heavy lifting! When you need more reach, lift height, speed and capacity, Bobcat S250 and S300 loaders are the machines that deliver plenty of power straight up. In addition to vertical-path design, the S250 and S300 have several other features in common: a high-flow option package with an extra 10 gpm of hydraulic flow, for a total of 30.7 gpm; an extended 48.8-inch wheelbase that assures a smooth, operator-friendly ride; and a two-speed option, from 7.2 mph up to 12.5 mph. The S250 and S300 are comfortable, too, with a roomy, easy-to-enter cab, precise steering and excellent visibility to the front and rear corners of the machine. All this in compact loaders that are only 74 inches wide and as agile as a gymnast! S LB. Rated Operating Capacity IN. Lift Height 75 HP Turbo-Charged, Liquid-Cooled Diesel Engine S LB. Rated Operating Capacity IN. Lift Height 81 HP Turbo-Charged, Liquid-Cooled Diesel Engine 1 Operating capacity rated with standard digging bucket according to SAE standard J818 - OPERATING CAPACITY TO EQUAL NO MORE THAN ONE-HALF THE TIPPING LOAD. 2 Bucket positioning helps operator keep the same tilt of the load during lifting. 3 Includes Lexan front door, top and rear windows. 4 Special application kit (see #3) must be used. NOTE Where applicable, dimensions are in accordance with Society of Automotive Engineers (SAE) and ISO standards. Specifications and design are subject to change without notice. Pictures of Bobcat loaders may show other than standard equipment. All dimensions are shown in inches. Respective metric dimensions are enclosed by parentheses. Bobcat Company complies with the requirements of ISO 9001 as registered with BSI in. (1880 mm) 84.2 in. (2139 mm) Bobcat Attachments for these models: Angle Broom* Auger Backhoe Box Blade Brushcat Rotary Cutter Buckets Bucket Adapter Chipper* Combination Bucket Concrete Mixer* Concrete Pump* Cutter Crusher Digger Dozer Blade* Dumping Hopper Farm Grapple (for use with utility fork or bucket) Grader* Hydraulic Breaker 4 Industrial Grapple Landplane Landscape Rake Pallet Fork-Standard (S300 Heavy-Duty only) Pallet Fork-Hydraulic Planer* Rear Stabilizer Scarifier Scraper Snow Blade Snow V-Blade Snowblower* Sod Layer* Soil Conditioner* Spreader Stump Grinder* Sweeper Three-Point Hitch Tiller Tree Spade Trench Compactor Trencher Utility Fork Utility Frame Vibratory Roller Water Kit Wheel Saw Whisker Push Broom Wolf Disc 34.0 in. (864 mm) in. (3211 mm) 34.0 in. (864 mm) in. (3211 mm) 80.9 in. (2055 mm) 99.4 in. (2525 mm) 80.9 in. (2055 mm) 99.4 in. (2525 mm) in. (216 mm) 48.8 in. (1240 mm) in. (2908 mm) in. (3630 mm) 59.2 in. (1504 mm) 72.0 in. (1829 mm) 8.5 in. (216 mm) 48.8 in. (1240 mm) in. (2908 mm) in. (3630 mm) 59.2 in. (1504 mm) 72.0 in. (1829 mm) Bobcat Company P.O. Box 6000 West Fargo, ND * Attachment Control Kit Required. B-1759 Printed in U.S.A. Kn-50M-702-#64082-F