Pioneering Document Destruction

How a few good customers and some specialized machinery help launch one of the first secure document destruction firms in the country.

In Anaheim, CA in 1966, North American Rockwell Company quietly opened its doors to begin work on projects that would ultimately help the U.S. reach the moon and win the Cold War. NAR would eventually merge with Boeing, the designer/developer of the B17, B29, B52, Minuteman Missile and Lunar Orbiter for the US government.

As the aerospace industry began to take off in Southern California, the need for the destruction of classified documents quickly became apparent. The work being done for the U.S. Department of Defense was highly secretive and dictated a thorough and verifiable method of destroying classified documents.

When ex-Marine John Newman joined Document Disintegration Inc. (DDI) in the early 1960s, the solution of a mobile paper shredding seemed obvious. DDI already had such a truck-mounted unit — though not fully operational. Newman volunteered to fix it. With a functional mobile shredder, DDI truck could drive to the customer's location and destroy the material right on site in a thorough and verifiable manner. The business of destroying classified documents started to soar.

DDI's self-designed and built mobile unit was the first "hands free" unit in the country. The on-board hammermill shredder could grind classified papers to 1/32", which in the 1960s and 70s was the standard for government classified document destruction. Starting out, DDI shredded about 20,000 pounds of classified document per week for Rockwell/Boeing.

In those days, document destruction was still a nascent industry and standards were yet to be adopted. Recalls Newman, "Many recyclers were being paid for shredding, but not all followed through and did it. I decided to do it properly. Having a mobile unit in which the destruction process could be witnessed by a company representative was key for the customer's peace of mind, and for our growth and reputation."

By 1968, DDI began to shred non-classified documents for the aerospace industry. The need for an off-site operation, where documents could be hauled away and shredded off-site, was becoming apparent to Newman. Construction of a new facility in Gardena California would provide DDI with new headquarters and a place to perform in-house shredding of non-classified documents. The Gardena location was central to surrounding thoroughfares and to the firm's aerospace customers.

Early on, Newman identified the opportunity to recycle shredded documents through baling and to avoid unnecessary landfill disposal. The by-product of classified document shredding would be too small to properly bale. With non-classified document destruction, however, the paper was shredded into strips as large as 1" wide. These strips were ideal for compressing, baling and reselling as recycled paper scrap.

To accomplish this, Newman purchased a large horizontal 10,000 Series baler from American Baler Company in 1968. The baler, which was state of the art for its day, featured automated operation and auto wire tying. This was the only baler that DDI headquarters used for the next 35 years.

Newman estimates that since that installation, DDI has baled and sold millions of tons of shredded paper. Aaron Wheeler, Operations Manager for DDI relates, "Most balers won't last 20 years, our baler from American Baler lasted 36. Even after all that time, the last bale was as dense and as solid as the first."

As the aerospace industry began to decline by the mid 1980's, DDI diversified its business to include more non-classified shredding. By 1990, the company purchased a new Williams Hammermill paper grinder for shredding at the Gardena facility — a machine still in use today. The company was shredding about 20,000 pounds of paper a day at the headquarters facility. By 2000, in addition to classified and non-classified documents, DDI was destroying, computers, electronics, cosmetics, even hazardous materials.

Newman now uses outside contractors for destruction and collection of cosmetics and hazardous materials. Some non-classified orders are also contracted to third parties. His priorities have also shifted from his previous hands-on work as the company entrepreneur. More time is now spent as a consultant to larger accounts, and verifying proper destruction for classified document clients.

Newman attributes his success to several factors. He was quick to point out that "establishing a good reputation by doing the job right was important from the start." In addition, he sought to establish a good rapport with everyone, talking to customers, drivers, and operators every day. "They are the key to a successful business," Newman stated. If there were any complaints, Newman handled them all personally.

"Plus, I have had some very good employees over the years," Newman added. "Aaron Wheeler, our operations manager, has been with DDI for 31 years. I could not have built the business without Aaron." Newman's and Wheeler's sense of loyalty to their customers and to each other was mirrored in their recent decision to replace the aging 10,000 Series baler with a new PAC Series baler from American Baler in the first quarter of 2005.

Newman recounts, "When Aaron and I started this business in the 60's, we never would have thought that a piece of equipment would perform so consistently over the years. When someone or something works so hard for so long, you stick with it. He chuckles, "Aaron, me and this new baler will probably just keep plugging along for another 35 years."
4/06