Auto recycling experts in the U.S. and Canada this month described not only challenges from OEMs and market forces for the salvage industry but ways to thrive in spite of them, Collision Repair Magazine reported last week.
Here’s abridged highlights from two speakers at the Ontario Automotive Recyclers Association Conference and Trade Show, courtesy of our Canadian content-sharing partner. As the status and business practices of the auto recycling industry affects the collision repair industry, don’t miss the full Collision Repair Magazine article.
Consolidation and new revenue
Amber Kendrick, the conference’s keynote speaker, gave the final presentation before lunch Friday. Kendrick is the President of Pete’s Auto & Truck Parts in Sheldon, Michigan.
Kendrick ended her presentation with a look at the next five to 10 years. Summing up, “Big yards are getting bigger,” she said. “Small yards are either going to get bigger or close.”
Her address Saturday morning was about the importance of adding alternative revenue streams.
“Charge for delivery. It’s already wrapped up on the price. You can separate that out with your existing yard management software, which is something we do” she said. “For customers who refuse, add it back into the final price.”
Fighting OEMs on VINs
Kicking off the event on Saturday morning was the keynote address from Mike Swift, President of the Automotive Recyclers Association (ARA), who discussed ARA’s ongoing push to have OEMs provide full VIN numbers to the recycling industry as a way of dealing with recalled parts.
It is the last few numbers in the VIN system that give particulars about parts on a car. The first part of a VIN is public, but not the last few. “We should have those numbers made public and the data in our systems,” said Swift. “How else are we going to know if a part on that car is involved in a recall? Without that info how can we know what parts to keep off the shelf?”
Collision Repair Magazine, March 23, 2016
Featured image: Amber Kendrick, president of Pete’s Auto & Truck Parts and a recycling industry consultant, spoke at the Ontario Automotive Recyclers Association Conference and Trade Show in March 2016. (Courtesy Collision Repair Magazine)