From the editor: Set yourself up for successful succession planning

Many scrapyards are family-run for generations, but when a business owner starts to eye retirement, a big question looms: who's next?

Succession planning is necessary for scrapyards of all sizes, but it often gets pushed aside for more pressing issues. Passing the torch isn't as easy as handing over the keys and saying, "Good luck." The next generation needs to balance old-school methods with new-school thinking as technology, automation, and global markets constantly shift.

A prime example of succession planning done right is United Metals Recycling, a family-owned business from Idaho that's seen over 50 years of success. Third-generation leader Brett Ekart's approach is straightforward: find the right people, let them learn through experience (mistakes included), and have fun. It's a blueprint that has not only helped United Metals thrive, but has also positioned the business well for the future — something that you can read more about here.

Whether it's a family member, an employee, or an outside hire, the right successor has to understand the business and have a vision for the future. Mentorship should happen over the course of years, not in a last-minute crash course. Maybe the next generation isn't interested. Maybe your right-hand person isn't prepared. Maybe you have no clue who should take over. That's why planning ahead is crucial.

Then there's the financial side of things. Tax planning and buyouts can make or break a business transition. Ownership agreements should be clear to avoid disputes, whether you're bringing in a new partner, selling, or passing the business on to the next generation. Without a solid strategy in place ahead of time, unexpected hurdles can drain profits and create unnecessary headaches.

Employee morale is also critical. If they don't know what's coming, they might start looking for a way out, which could cause operational disruptions just when stability is needed the most. Communicating the plan early and involving employees in the process helps build trust, ensuring that employees feel confident in the direction that the business is going. 

Finding and keeping great employees has never been easy, but in today's job market, it's even more challenging than before. Every industry is fighting for talent, and scrap is no exception. Conversations around hiring, retention, and leadership transitions will be front and centre at the upcoming ReMA Convention, and I'll be there, ready to talk about what's working, what's not, and what the future of metal recycling looks like. If you'll be attending, let's connect!