Lessons From A Volatile Year in ITAD
At the recent IAITAM 2023 conference held in Nashville, TN, CircleIT's President, Will Cohen, presented valuable insights on navigating the challenges and changes in the IT asset disposition (ITAD) industry. With a focus on secure and sustainable circularity for information technology devices, CircleIT continues to establish itself as a leader in the field. In this blog article, we recap the highlights from Will's engaging presentation titled "Lessons From A Volatile Year in ITAD."
Historical ITAD Market:
The traditional framework of ITAD has long revolved around a complex marriage of data security services and value recovery for resold retired IT assets. Maintaining several industry standard certifications while offering a variety of on-site logistics services, timely and transparent processing with tracking through a live portal, and a standard revenue share has long been the norm for the industry which came to birth over 20 years ago. But as the world of technology, security, and corporate sustainability continues to rapidly evolve, it’s time for ITAD to evolve too.
2022 Shifts in ITAD:
Market dynamics for the ITAD industry in 2022 changed massively. Cost of transportation and supplies significantly increased due to the oil crisis, supply chain challenges, and others. Product values on the secondary market declined nearly 40%, in what has been dubbed by leading industry consultants as ‘the largest decline in the secondary market in over 10 years’. All of this happening in 2022 set the stage for a challenging environment in ITAD…but also a lot of opportunity to elevate service and bring new areas of value to trusted clients.
Adapting to Changing Market Dynamics:
In response to these shifts, ITAD providers and IT asset managers (ITAMs) can implement strategic measures. ITADs can embrace higher value online retail markets, prioritize parts and component reuse, and develop sustainable services and infrastructures, among various other strategies. ITAMs can strategically manage end-of-life inventory, integrate lifecycle services into ITAD processes, and encourage deeper levels of value extraction through reuse and ESG practices.
Continuous ITAD Evolution of Providing Value:
CircleIT's commitment to providing value extends beyond financial considerations. We prioritize asset reporting/reconciliation, risk management, compliance with regulations (e.g., RIOS, R2, NAID AAA Certification, ISOs, ASCDI Ethics), and offer carbon-neutral services. Additionally, CircleIT supports virtual/hybrid workforce needs, reduces Scope 3 emissions, and quantifies environmental and social impact.
ESG practices play a crucial role in shaping the future of sustainability. CircleIT embraces this ethos and works towards achieving positive environmental and social outcomes. As Will Cohen shared during the presentation, "Sustainability is no longer about doing less harm. It's about doing more good." CircleIT remains dedicated to incorporating ESG goals into their practices and helping organizations make a meaningful impact.
In conclusion, Will Cohen's presentation at the IAITAM 2023 conference shed light on the ever-evolving ITAD landscape and the strategies needed to adapt to changing market dynamics. CircleIT continues to lead the industry with secure and sustainable ITAD practices, empowering businesses to make a positive impact while achieving their sustainability and ESG goals.