Marty Davis, president of Midland Davis Corp., likes the word “diversity.” When it comes to his Moline-based business, that word has been a business necessity. “If we did not have diversity, we would not be sitting here today,” the 69-year-old Mr. Davis said during a recent interview with the QCBJ. That’s because in a vastly […]
Want to Read More?
Get immediate, unlimited access to all subscriber content and much more.
Learn more in our subscriber FAQ.
Subscribe Now
Marty Davis, president of Midland Davis Corp., likes the word “diversity.”
When it comes to his Moline-based business, that word has been a business necessity.
“If we did not have diversity, we would not be sitting here today,” the 69-year-old Mr. Davis said during a recent interview with the QCBJ.
That’s because in a vastly changing world, the Quad Cities business — that is involved in many segments of the recycling industry including scrap metals, paper, plastics and wood — has been changing with these wild times. Those changes have included the changing of the public’s recycling habits, the changing of prices for recycling items, and a changing local economy that heavily impacts the recycling business.
“With changes, we can be proactive and help the environment, and still make a profit,” Mr. Davis added.
Some of those changes have spurred a new business division for Midland Davis that is centered around fixing up old wooden pallets — items used in shipping and that used to be discarded as soon as the freight was unloaded.
For years, company officials have been pointing out that perfectly good pallets were being thrown in the trash when they could be repaired and resold. In August of 2021, that changed when Midland Davis began refurbishing the old pallets. Then a few months ago, the company began leasing a 2,700-square-foot facility at 1320 First St., Rock Island, to perform the pallet work. At that west-end site, company workers take apart pallets, reuse the good boards and rebuild the pallets.
The new pallet refurbishing division was cause for celebration recently as the Quad Cities Chamber of Commerce invited chamber members and other business leaders for a ribbon-cutting ceremony at Midland Davis’ new operation.
Here are some highlights of the pallet refurbishing division:
- It will have an annual $2.2 million economic impact on the region, according to the chamber.
- Midland hired 10 new employees for the division.
- The division fixes up 1,000-1,500 pallets a week with a goal of eventually repairing about 2,000 pallets weekly.
- The company invested about $250,000 to launch the new pallet operation.
- About 75% of the old pallets that arrive find a new life. That is, they can be repaired or the wood from old pallets can be used to repair other pallets. The other 25% are often grinded into mulch and used in landscaping or for fuel. (In addition to many pallets being non-repairable, Midland Davis officials have discovered that non-standard-sized pallets also are finding their way to the company. A standard-sized pallet is 48-by-40 inches. Sometimes, the smaller pallets cannot be used or repaired.)
Of course, Midland Davis does much more than wooden pallets. For many years, Midland Davis centered much of its business on processing scrap iron. That part of the business was primarily driven by the fact that the QC once was home to many farming equipment giants, such as International Harvester and John Deere. But the changing times hit in the 1980s when IH — a major customer for Midland Davis — went out of business. That helped convince the family-owned company to diversify.
In 1986, the company bought Big River Paper Recycling of Bettendorf and moved the operations to Moline.
“Recycling paper, plastic, wood and glass are slowly but steadily replacing iron and steel as the backbone of Midland’s business,” according to information from the company’s 125th anniversary celebration publication in 2017.
The company processed about 1.5 million pounds of wood recently in November.
Mr. Davis said that he is especially proud that the paper recycling division has grown from nothing to now be a big part of the company. Midland Davis now processes about 2,000 tons of paper per month. (When it took over Big River in the 1980s, the Bettendorf company was processing about 150 tons of paper per month.)
But in the paper recycling world, times are also changing. And those changes center around the public’s declining use of paper. Mr. Davis said that can be seen in the recycling bins used by many residents in the Quad Cities. Just a few years ago, recycling bins at homes were filled with about 65% paper. Now, those bins only have about 25% paper because far fewer people are using paper products like newspapers and other publications, he added.
The fate of paper recycling also has been impacted by the changing economy in the Quad Cities. For instance, the company’s paper recycling numbers were hurt when the former R.R. Donnelly printing plant in Eldridge closed in 2011.
There were more paper recycling woes caused when the Moline Dispatch and Rock Island Argus newspapers closed local printing operations in 2016 and had their papers printed in Cedar Rapids, Iowa, for several years. (Those publications, which now are part of Lee Enterprises, are currently printed in Davenport by the Quad City Times.)
“We have endured a lot of customers closing. … It’s an interesting business,” said Mr. Davis, who along with his brother Mitch represents the fourth generation in the family business.
And to complicate the business landscape more — prices for recycled products are seemingly on a wild roller coaster ride, going up and down, especially down. Mr. Davis said the price for a key category of scrap iron went from about $410 a ton in early 2022 to $275 in late December. The same falling prices can also be seen in paper and other recycled products.
In fact, the falling prices are even more devastating for mixed paper. That commodity went from $90 a ton a few months ago to basically nothing now, he added.
“It’s not uncommon to have ups and downs,” he said.
As the company said in 2017 on what was its 125th anniversary: “The cycles of our business and our continuous transformation as a company are never stagnant. Peaks and valleys are the nature of our commodity-related business.”
Those peaks and valleys — and changing prices — have spurred even more diversity for Midland Davis. A few years ago, the company built its own brokerage division. It also operates MDX Freight LLC, a subsidiary that offers freight services.
As for the future, the company expects more changes, more diversification, and more growing business. Here is what some of the company officials say about the coming years:
“We’ve made changes. We can pivot when we need to,” – Laura Davis, company controller.
“There will always be something to recycle. We just don’t know what that is yet,” – Eric Davis, business development manager. (He adds that perhaps the new-age car batteries will be the next items to recycle.)
“The best is yet to come.” – President Marty Davis.
As for the future of Midland Davis — the company will likely continue to operate with the Davis family in control. Marty Davis said the company had an offer from a potential buyer a few years ago, but the family decided against selling it. He adds that it’s “unlikely” the company will be sold in the foreseeable future.
It’s even possible Midland Davis will someday move forward with a sixth generation of Davis family members. Fifth-generation leader Eric Davis has two young daughters in grade school. He adds it’s far too early to make a prediction about their possible future with the company.
“Time will tell,” Marty Davis said.
AT A GLANCE:
MIDLAND DAVIS CORP.
Top company officials: President Marty Davis, Vice President Mitch Davis, Business Development Manager Eric Davis, Human Resources Manager Michael Davis, Controller Laura Davis and Executive Director of Brokerage Leonard Zeid.
Year founded: 1892.
Locations: Headquartered at 3301 4th Ave., Moline; wood pallet refurbishing division at 1320 1st St., Rock Island; with additional brokerage offices in Naperville, Illinois; Atlanta, Georgia; Muskogee, Oklahoma; St. Louis, Missouri; and St. Catharines, Ontario.
Number of employees: 79
Services provided: Ferrous, nonferrous scrap metals; paper, plastic and wood recycling; wood pallet recycling and rebuild division; document destruction; retail buyback; brokerage; and freight.
History: Midland Davis Corp. can be traced back to 1892 when Louis Livingston began his career in the scrap industry. A new arrival to America, this enterprising young man initially earned his living collecting discarded iron and steel that he would then sell to local foundries and mills. By 1908, Mr. Livingston was becoming a success, growing his business to the point where a scrap yard was required.
He bought property in East Moline and named his operation Midland Iron & Steel. Now in its 5th generation of Davis family ownership, the company has evolved to become Midland Davis. Brothers Mitch and Marty Davis serve as fourth-generation owners, and Marty’s three children — Eric, Laura and Michael Davis — are the fifth generation in the business.
Website: midlanddavis.com
Phone: (309) 764-6723
