ANSWER FROM THE INSULATION DOCTOR:
Hello Shannon,
I'm not sure what your objective is. If you are trying to utilize insulation that you already have for your own use you would need to check with a local rental shop to find out if their rental machines are capable of re-shredding insulation. Generally the rental machines are small and portable. I doubt that they have the capability to do this.
Contractors have machines that have this capability, however, the machines alone are approximately $25,000 or more each and contractors do not rent them to individuals as a rule.
If you are trying to enter into a supply-type business, I think you will find it very difficult to compete with the major manufacturers due to federal requirements and equipment you would need to maintain a true R-value in your product. This is regulated by the government and inspected on a regular basis. I know that the average manufacturing facility costs about $11 million or more.
Hope this answers your question.
Bruce Jones
The Insulation Doctor