Report On End-of-Life Vehicles Worldwidearav3.timberlakepublishing.com/files/Full Sept-Oct Issue 2012... · End-of-Life Vehicles Worldwide ... salvage options will take these qualities

RecyclingRecyclingAutomotive™

September-October 2012 Official Publication of the Automotive Recyclers AssociationSeptember-October 2012 Official Publication of the Automotive Recyclers Association

Report On

End-of-Life Vehicles Worldwide

The road to the automotive recycling industry’s success is paved through licensed facilities and international cooperation.

Plus: Chris Wright’s ARA Heritage • Fire! • ARA Legislative Summit

INDUSTRY REPORTEnd-of-Life Vehicles

Worldwide 23Automotive Recycling leaders

share their views on the State of the Industry Worldwide.

FEATURES LEGISLATIVE MATTERS

Summit 5 39Attendees of the Legislative Summit 2012

develop recommendations for further discussion by the ARA Board.

By Betsy Beckwith

CHANGE OF GUARD

Vision & Experience 41Advancing ARA’s services and expanding salvage options will take these qualities.

By Michelle Keadle-Taylor • Photography by Jonathan Allain

AUTO RECYCLER PERSPECTIVE

Fire! (The word you never want to hear) 46

One auto recycler shares how CAR certification proves to be benefical in a crisis.

By Shannon Nordstrom

ARA GUIDE

2012 Trade Show Exhibitors 49

SPOTLIGHT ON EXCELLENCE

GreenStar Auto Recyclers 55By Michelle Keadle-Taylor

Columns

President’s Comments | 4Editor’s Notes | 6International

Auto Recycling | 60Final Thoughts | 66

Departments

At a Glance | 7ARA Action | 8

Marketing 101 | 10Insure This | 14

Lessons Learned | 16That’s My Opinion | 18

Safety Matters | 20Green Scene | 22

Capitol Connection | 62Crossword Puzzle | 64Industry Calendar | 65Advertiser’s Index | 65

Cover Images

iStockphoto.com/Duncan Walker/Oleksiy Mark

Recycled cars are images from Al’s Auto Parts.

September-October 2012 | Volume 32 Number 5

Automotive

Recycling

Automotive Recyclers Association9113 Church Street

Manassas, VA 20110-5456 USA(571) 208-0428 / (888) 385-1005

Fax (571) 208-0430 / www.a-r-a.org

September-October 2012 | Automotive Recycling 3

™

www.facebook.com/AutomotiveRecycling

CORRECTIONIn the July-August 2012 edition of AR on page 40, the column title of “2011 LKQ Citation Hot

List” should have read, instead, “2011 OSHA Citation Hot List For The Auto Industry.” We apologizefor the misrepresentation.

OfficersPRESIDENT

Randy ReitmanReitman Auto Parts

Melbourne, [email protected]

FIRST VICE PRESIDENTChris Wright

Capitol Auto PartsThomasville, GA

[email protected]

SECOND VICE PRESIDENT/TREASUREREd MacDonald

Maritime Auto Salvage, Ltd. Truro, NS Canada

[email protected]

SECRETARY Ricky Young

Young’s Auto Center & Salvage/Car CrushersBenson, NC

[email protected]

IMMEDIATE PAST PRESIDENTDoug Reinert

Chuck’s Auto Salvage, Inc.Douglassville, PA

[email protected]

ARA Staff & ContractorsPUBLISHER/CHIEF EXECUTIVE OFFICER

Michael E. [email protected]

DIRECTOR, MEMBER SERVICESKelly Badillo

[email protected]

DIRECTOR, POLICY & EXTERNAL AFFAIRSBetsy Beckwith

[email protected]

DIRECTOR, POLICY & POLITICAL AFFAIRSDelanne Bernier

[email protected]

DIRECTOR, STATE & GRASSROOTS AFFAIRSJessica M. [email protected]

MEETING & EXPOSITIONKim [email protected]

AUTOMOTIVE RECYCLING EDITORIAL, ADVERTISING, DESIGN & PRODUCTION

Caryn SmithSuko Creative Communications

[email protected]

For advertising information or to submit article ideas or member news, e-mail

Caryn Smith at [email protected] Or call (239) 225-6137

www.a-r-a.org

4 Automotive Recycling | September-October 2012

ARA has been busy representing automotive recyclers on all fronts during the past year. Several ARAmembers recently traveled to England to participate in the very first CARS 2012 event and the annu-

al International Roundtable (IRT) meeting. Representing ARA was our duly elected Second VicePresident Ed MacDonald, Past Presidents Sandy Blalock, Skip Weller, and Norman Wright, who is cur-rently serving as the Government Affairs Committee Chair, as well as ARA Regional Director DerekCovey, At-Large Director Bob Phelps, and Roger and Jeff Schroder of Car-Part, along with CEO MichaelWilson. It was great to have such representation from our organization.ARA member Ian Hill, Hills Salvage and Recycling Limited, hosted the event at his state-of-the-art

12-acre facility right outside of Liverpool. Nigel Dove, one of the shows planners, expressed that CARSsought to incorporate all the best features of the ARA Convention & Exposition, IT, and the ISRI intothis event. Over 700 delegates from around the world attended to help move business forward glob-ally. A highlight was a tour of JCB World Headquarters, one of the top three manufacturers of heavyequipment in the world, and a main sponsor of CARS.CARS 2012 played host to IRT participants from Australia, Canada, India, Japan, Malaysia, United

Kingdom, and the United States. The event brought forth an almost universal chorus of common con-cerns that plague our industry globally. The main source of continued unease is the large numbers ofvehicles that are being handled and exported by unlicensed participants, depleting stock for law abid-ing businesses. Congratulations go to Terry Charlton of Charlton Recycling and Ian Hill of Hills Salvage, two of the

United Kingdoms top auto recyclers, along with Nigel Dove, and equipment manufacturer Vortex Ltd.,Andy Latham, Compliance Manager with Bluecycle, and Chris Flocate, Editor of ATF Professional forsuch a successful event.The newly-formed 17-member ARA Safety Committee, chaired by Past President Doug Reinert,

Chuck’s Auto Salvage, Inc., is hard at work. Informative reports on OSHA’s top ten violations and otherissues are detailed in the ARA Newsletter and in Automotive Recycling’s new Safety column.In March, the ARA Executive Committee (EC) approved the addition of three new staff members

to help better address industry challenges. Jessica Thomas assumed the role of Director of State andGrassroots Affairs, and has already made an impact in that area. Delanne Berrnier is the Director ofPolicy and Political Affairs. She brings to ARA an unwavering commitment to the political process andthe roles of policymakers and PAC’s. Familiar to most of you, Betsy Beckwith has joined ARA in theposition of Director of Policy and External Affairs. She, along with Delanne and Jessica, will work topromote ARA’s initiatives in the policy, political, and corporate arenas.June was filled with a flurry of legislative activities of interest to automotive recyclers across the coun-

try. Ohio’s proposed SB273 would open the salvage pools to unlicensed and out-of-state buyers. InCalifornia, proposed legislation, AB 2618, would require all individuals other than licensed dealers, dis-mantlers, automotive repair dealers, and scrap processors to pay sales tax directly to auto auctions. ARAjoins with California recyclers to strongly support this bill. Legislators in Texas are looking to rewrite their salvage law. In Illinois, SB3249, which exempts

salvage auctions from licensing requirements for repossession agencies, was signed into law on June25. In Massachusetts, a last minute compromise secured passage of Right to Repair legislation,requiring auto manufacturers to provide repair and diagnostic information to car owners or theirchoice of repairer.In Virginia, HB 798 will be carried over to the 2013 legislative session. ARA is also reviewing the 600-

page Highway Bill Congress passed in June. New Mexico auto recyclers have seen positive action ontheir efforts that only licensed dealers and licensed recyclers conduct such business in that state. InIowa, Mike Swift, ARA’s Regional Director Chair, has been successful upholding a ban on illegal signsposted in the city of Des Moines right-of-ways.So, as you can see, there is a lot going on at ARA today. This is all the more reason to mark your cal-

endar to attend the 69th Annual Automotive Recyclers Association Convention & Exposition, to beheld in Orlando, Florida, October 24-27. This is sure to be another memorable event.As I close, I want to wish each and everyone of you a great fall, and I will see you in Orlando!

Randy ReitmanARA President 2012

President’s Comments

By Randy Reitman, ARA President

Year in Progress

AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA, (571) 208-0428 / (888) 385-1005, Fax: (571) 208-0430, Internet:www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing of-fices. Additional member subscription are $15/year. Non-member subscriptionsare $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year sur-face mail or USD$85/year airmail. $20 libraries and non-profits. Copyright ©2012 ARA. All rights reserved. Materials may not be reproduced in any form with-out written permission from the publisher. Statements of fact and opinion arethe responsibility of the authors alone and do not necessarily imply any opinionon the part of the officers, directors, staff, or the members of the Automotive Re-cyclers Association. Postmaster: Send change of address to Automotive Recy-cling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA.

My favorite business quote is from ZigZiglar: “You can have everything in

life you want, if you will just help otherpeople get what they want.” With theARA Convention & Expo coming up inOctober, this is a great time to motivateyour team. Lately, I’ve been following another

good business blog by Jon Gordon. Hereis an excerpt from a recent entry:The ability to motivate one’s team and

organization is one of the most impor-tant skills you must possess today. Youcan’t outsource motivation. Many leaderswant to take the emotion out of businessbut that is a huge mistake. When fear andnegativity are the primary emotions peo-ple in your organization are feeling, youhave to counter that with an evenstronger emotion, like faith, and opti-mism. Here are five ways to do that:

1. Don’t be too busy to communicate.Uncertainty breeds negativity if there is avoid in communication. Unless man-agers and leaders fill this void with clearand positive communication, people willassume the worst and act accordingly. 2. Lead with optimism. The engine for

growth and prosperity has always been itscan-do attitude and spirit. But, in the pastfew years optimism has been in short sup-ply. The most important weapon againstpessimism is to transfer your optimismand vision to others. Leadership is a trans-fer of belief, which inspires others to thinkand act in ways that drive results. 3. Share the vision. It’s not enough to

just be optimistic. You must give yourteam something to be optimistic about.Talk about where you have been, whereyou are, and where you are going. Shareyour plan for a brighter and better

future, and constantly reiterate the rea-sons why you will be successful. 4. Relationships build real motivation.

It’s much easier to motivate someone ifyou know them and they know you. If youdon’t take the time to get to know thepeople who work for you, then how canyou ever truly know the best way to lead,coach, and motivate them effectively? 5. Create purpose-driven goals. Real

motivation is driven by purpose and adesire to make a difference. When peo-ple feel as though the work they do is play-ing an integral role in the overall successof the team and organization and theworld, they are motivated to work hard-er. Great teams don’t work for a paycheck.They work for each other and a biggerpurpose. For more excellent advice, follow Jon

Gordon’s blog at www.JonGordon.com. �


Editor’s NotesBy Caryn Smith [email protected]

5 Ways to Really Motivate

For the auto recycler, onemust-have around the

shop is a good saw blade. Afterall, auto recyclers are in thebusiness of dismantling cars –which means cutting throughsections of a vehicle with ease,safety, and precision. HUBIndustrial Supply, an ARAAssociate Member and fre-quent ARA tradeshow exhibit-or, specializes in providing sawblades designed specificallyfor auto recyclers’ use, as wellas other essentials, such astools and safety equipment,and more. Stuart Johnson, Vice President of HUB

Industrial Supply, says, “We specialize inserving the auto recycling industry, whichsets us apart from other providers. Ourfocus is helping to save our customersmoney and to work more efficiently.” Founded in 1990 as a local fastener

supplier in north Florida, HUB experi-enced explosive growth after adoptingthe business model of specialization incertain industry sectors that could bestbenefit from their strengths, such as autorecyclers. Now, as a national supplier,they are meeting the needs of 3,000 ormore auto recycling facilities. With a large volume of business in this

industry, HUB is able to pass their lowerproduction costs onto their customers,as well as share the extensive expertisethat comes along with buying theirproducts. For instance, Johnson believesthat anyone can sell you a blade, but thequestion he poses, “Is it the right blade?We have the expertise to help someonefind the right blade for their equipment,and show them the right way to use it.” The HUB Premium Reciprocating

Blades, used for cutting car frames, boasta longer life and faster cutting whenused correctly. Always concerned about

quality, HUB continually tests andimproves their products to keep up withthe ever-changing automotive innova-tions and stricter safety regulations.Currently under development are bladesthat will work better with new high-strength steel body vehicles.Beyond blades, HUB offers a variety of

products targeted specifically for theauto recycling industry – from markersto safety supplies. “Providing a safe work-place is a top concern for all of us,” saysJohnson. “HUB offers an ever growingassortment of PPE and plant safetyaccessories that can help auto recyclersachieve their safety goals in a cost-effec-tive manner. We also have a compre-hensive array of first aid products, farbelow the cost from companies that offeron-site first aid supplies, that meet thestandards of the OSHA initiative.”

HUB Industrial Supply Co.finds value as an ARA Conven-tion & Exposition participant.“There is no substitute forface to face interaction. TheExposition gives us the bestopportunity to get to know aton of people better than wedid before. This builds loyaltyand the opportunity to betterunderstand how we can be ofservice to them. That’s reasonnumber one. I’ve got about 25other reasons, with notenough room to list them all,such as the chance to see new

trends in the market, and to show recy-clers our latest products that we havedeveloped to save them time andmoney.”Headquartered in Lake City, Florida,

HUB Industrial has satellite warehousesin Indiana and Nevada. “One of manyways we add value to our customers isthat everything in our catalog is guaran-teed in-stock, and if it doesn’t ship thesame day you order it, we’ll write you acheck for $100. This allows our cus-tomers to tie up a lot less money in keep-ing their inventory of consumablesstocked, with the ability to only orderwhat they need immediately since it willalways be available from us,” saysJohnson.“Ultimately the pleasure for us is we

get to work with the most genuine peo-ple in this industry,” says Johnson. “Weprovide them phenomenal customerservice and stock a huge supply of prod-ucts at great prices. We are passionateserving the auto recycling industry.” For more information, contact Stuart

Johnson, Vice President, HUB IndustrialSupply at [email protected] orcall (800) 743-9401, www.hubindustrial.com. �Caryn Smith is the editor of Automotive Recycling magazine.

At a GlanceBy Caryn Smith

HUB Industrial Supply: A Cut Above


ASSOCIATE MEMBER

Everything in the Hub Industrial Supply catalog is guaranteed

in-stock, and if it doesn’tship the same day youorder it, you get a check

for $100.

ARA Government RelationsStaff Begin High Level Meet-ings with Elected Lawmakers

In June and July, ARA staff began whatwill be a series of Congressional visits toa targeted list of Members of the Houseand Senate and their staff. The Senatorsand Representatives are being selectedbecause of their leadership, committeeassignments and/or connection to ourindustry. The goal is multifold: 1) Updating law-

makers and their staff on our active issues;2) Learning about any emerging issuesthat could potentially impact our indus-try; 3) Continuing to brand ARA; and, 4)Becoming even more of a resource forMembers of Congress. Meetings were recently held with:• Senator Richard Burr (R-NC), Senate

Finance Committee and Ranking Minor-ity Member on the Senate Health,Education, Labor and Pensions Commit-tee;• Rep. John Kline (R-MN), Chairman

of the House Education and the Work-force Committee;• Rep. John Shimkus (R-IL), Chairman

of the House Environment and the Econ-omy; Subcommittee of the Energy andCommerce Committee and Co-Chair ofthe House Recycling Caucus;• Rep. Cliff Stearns (R-FL) – an Energy

and Commerce Committee memberwho is Chairman of its Oversight andInvestigations Subcommittee;• Rep. Lee Terry (R-NE) – an Energy

and Commerce Committee memberwho is Vice Chairman of its Communi-cations and Technology Subcommittee; • Rep. Tom Latham (R-IA) – an

Appropriations Committee member andChairman of its Transportation, Housingand Urban Development, and RelatedAgencies Subcommittee;• Rep. Darrell Issa (R-CA) – Chairman

of the Oversight and Government Re-form Committee, and;

• Rep. Ken Calvert (R-CA) – anAppropriations Committee member whois Vice Chairman of its Interior, Environ-ment and Related Agencies Subcommit-tee and is also on the Budget Committee. The Congressmen and Senator were

fully engaged in learning more about thecomplexities and benefits of what ARAmember companies do in their automo-tive recycling facilities. Upcoming meet-ings are planned with the Speaker of theHouse, as well as Members of theAppropriations Committees and othercommittees with jurisdiction over ourissues.

ARA Meets With Small Business Coalition forAffordable Healthcare (SBCAH)

ARA met with small business repre-sentatives at the headquarters of the

National Federation of IndependentBusinesses (NFIB) to discuss options onhow to best respond to the SupremeCourt ruling which upheld the Adminis-tration’s healthcare reform individualmandate provision.The SBCAH is strongly opposed to the

entire Patient Protection and AffordableCare Act (PPACA) and wrote to Congressidentifying the Act’s provisions which willhave the most negative effects on smallbusinesses which include:• new taxes on small business healthinsurance plans;• higher insurance costs due to newmandated benefits;• increases in Medicare payroll taxes;and, new, burdensome reportingrequirements.In its letter to Congress, the Coalition

urges policymakers to repeal the PPACAand to refocus their energy and work todevelop a variety of widely supported solu-tions that place access and affordability astop priorities. Additionally, the Coalition and the

Majority Members of the House Waysand Means Committee, which has juris-diction over the healthcare reform issue,wants to hear your comments of howthis law will negatively affects your busi-ness. These comments will help legisla-tors reframe the debate so that abalanced, incremental set of reformscan be realized. �


ARA ActionLatest News and Reports from ARA

ARA On-the-Ground Efforts

In Virginia, ARA staff along with local automotive recyclers met with legislativestaff at the Department of Motor Vehicles (DMV) in Richmond to discuss pro-posed legislation that would make changes to the title of motor vehicles pur-chased at salvage auctions. House Bill 798 will be carried over to the 2013legislative session and DMV has been tasked with bringing together the appro-priate stakeholders to review and discuss the issues raised by this legislation. ARAlooks forward to coordinating with the Virginia Automotive RecyclersAssociation, DMV and other stakeholders as they participate in future discus-sions.In Ohio, ARA, the Ohio Auto and Truck Association (OATRA), and local recy-

clers have launched a coordinated effort to keep the industry’s concerns aboutthe dangerous consequences of SB273, which would open salvage pool auctionsto unlicensed and out-of-state buyers, in front of lawmakers. ARA, OATRA, andOhio auto recyclers have been reaching out to legislators at events across thestate this summer to better educate lawmakers about the auto recycling indus-try and the serious risks SB273 poses to consumers, local businesses, and theenvironment.

Afew years ago I wanted to fax some-thing to a recycler, so I called him to

ask for his fax machine number. He said,“We don’t have fancy things like thathere!” I ended up having to mail himwhat I wanted him to have. I was frus-trated because it took several days to takecare of something that could have beendone in just minutes.In today’s world of instant communi-

cation, fax machines are considered slow.In fact, a lot of changes have happenedin the world of technology since faxmachines have come onto the scene, yetmany in the auto recycling industry todayare still in the dark ages, electronicallyspeaking. At this writing only 40 percentof the industry is computerized. Maybe you are not using e-mail to

instantly describe parts to an inquiringcustomer or using it to broadcast a sellingmessage or newsletter to a large group ofcustomers or prospects, but you shouldbe if you expect to continue to sell partsmuch longer. This is the start of a series of articles that

will discuss the basics of electronic adver-tising, beginning with the fax machineand ending with electronic social media.

Fax MachineThis standard office equipment is con-

sidered old technology today, yet faxmachines are still used successfully as amarketing tool. It is a very good way to geta message out to individuals or a largemembership group quickly. You can usea fax machine that you plug into anyphone line. You can have a dedicated lineto receive faxes or you can use your reg-ular phone line. The newest fax machinescan tell the difference between incomingphone calls and fax messages and sortthem out.We all know that sending information

is as easy as loading a document into themachine, dialing a recipient’s fax phonenumber, and hitting “send.”

Yet this technology is under-utilized forwhat it can do to market your business.New federal regulations prohibit send-

ing unsolicited faxes to anyone. It is con-sidered “spam,” much like with e-mail,and violators can face large penalties forbreaking the law. So when building a faxphone list for your business, be sure tofirst get permission from those you planto fax before sending them anything pro-motional. Include a statement at the bot-tom of your fax with instructions abouthow to get off your list, if they desire.Your fax can be used to highlight a

flash-sale (a one day, spur of the momentprice reduction on overstock, forinstance), or let a particular business ortwo know about your other services theymay not be aware of without the risk oflanding in their random e-mail list. Keep in mind that photos, large graph-

ics, and certain colors such as yellow orlight blue will not fax well, or maybe not

at all. It’s best to have faxes in black inktext or line drawings. If you plan to send a fax to a large

group of people, utilize a fax-broadcastservice to do so. The service company willask you to provide a list of fax phonenumbers and documented proof that youhave their permission to send faxes tothem. You then fax your document to thebroadcast service and they will broadcastit out to your list. A group of several hun-dred or more will receive your faxed itemall at the same time.

Electronic Mail Commonly known as e-mail, this

method of exchanging messages withindividuals or companies via the com-puter is fast becoming the communica-tion of choice in business today. Ofcourse, in order to use e-mail you need tohave a computer, and a modem or a highspeed connection from an Internet


Marketing 101By Mike French [email protected]

Fax Machines, E-Mail, and QR Codes

On any phone with a camera and web capabilities:Download a free QR Code Scanner App

Launch the appScan the code and it will launch a webpage!

It’s that easy – give it a try here!QR codes have many other uses in your marketing efforts!


Service Provider (ISP). You’ll also need ane-mail program (like Outlook Express).Lastly, you’ll need a robust list of accuratee-mail addresses, again with permission tosend promotional information to therecipient. Each member of your staff should have

their own e-mail address included ontheir business cards and your website. To send a company newsletter or a

promotional flyer to a large group of e-mail addresses, using a professional serv-ice, such as MailChimp.com or ConstantContact.com, just to name two of them,will lend credibility to your e-mail andreduce the risk of being blacklisted asspam.” There are legitimate ways to get peo-

ple to opt to receive e-mail blasts fromyou. You can ask them at the point ofpurchase if they would like to receiveyour newsletters, specials, via e-mail. Youcan have a place on your website for peo-ple to sign up for contests, offers,

newsletters, etc. Never add them withoutgetting their permission first.

QR CodeThe latest in marketing is the QR Code.

An abbreviation for quick response code,this new two-dimensional bar code wasinvented in Japan by the Toyota subsidiaryDenso Wave in 1994 to track vehicles dur-ing the manufacturing process. Morerecently, the system has become popularoutside the industry due to its fast read-ability and large storage capacity com-pared to standard UPC barcodes. The code consists of black modules

(square dots) arranged in a square pat-tern on a white background. You’veprobably seen them popping up every-where on just about everything, such asbusiness cards, coupons, magazine arti-cles, freeway signs, and even printed onthe side of busses. Users with a smartphone equipped with a camera and thecorrect reader application can scan the

image of the QR Code to display text,contact information, connect to a wirelessnetwork, watch a video, or open a webpage in the phone’s internet browser. QRCodes may also be linked to a location totrack where a code has been scanned. You can put a QR Code on just about

any object that users might be able to getinformation from. Have your code link toa coupon, Facebook, Twitter, YouTube, orwebsite. Where do you get QR codes? Youcan find and download a free QR codegenerator online and create them your-self. Do a Google search to find one. I will be writing next about websites,

blogging, instant messaging, and texting.These are all great forms of advertisingthat you should be using to promote yourbusiness. �

You can put a QR Code on just about any object that users might be able to get information from.

Mike French, President of Mike French & Company, Inc., can be reached toll free at 800-238-3934 or visit his company’s website atwww.MikeFrench.com.

The natural catastrophic events of thepast couple of years have shaken

much of the Property and Casualty insur-ance world into indecision and concern.Many of the headlines show that pressureis growing for rate increases and morestrict underwriting guidelines. However,among all the tragedy and uncertainty,the U.S. insurance industry is still a well-capitalized industry that has seen cycleslike this before, and will no doubt expe-rience them again. The catastrophic events around the

world in recent years, including earth-quakes, tsunami’s, etc., have resulted inhundreds of billions of dollars in claims.Even within the United States, areas suchas the Gulf states and Mid-Atlantic statesare showing increases in frequency andseverity of claims. Loss ratios in these areasare trending anywhere from 105% to115%. These are major changes thatcould affect the insurance industry’s abil-ity to protect your assets and also affectthe premiums you may be asked to pay.Not all areas of the U.S. are affected thisdrastically, but all are showing increasesacross U.S. entry points where wind orhurricanes may occur.

Translating the TrendsPROPERTY: The current market condi-

tions have created a perfect opportunityfor us to spend quality time with ourclients to expand our conversationbeyond insurance and into contingencyplanning, reviewing your business model,and gathering more accurate details per-taining to building renovations, quality,occupancy, and construction type. Indoing this, we may better position andprepare you in the marketplace. Thisallows us to provide better counsel to youon policy terms, conditions, and cover-age. WORKERS COMPENSATION:When you are

reviewing your current workers compen-sation program, closely review losses to

look for trends. State by state, the resultsfor carriers have been mixed, and for thefirst time in years, we have major carrierstelling us they will not write new workerscompensation exposures in certain states,nor will they stay on policies already writ-ten in those states. The comments vary byinsurer, but the underlying results ontheir workers compensation books ofbusiness are not good. The combined lossand expense ratios have gone from 109%in 2009 to 118.1% in 2010, and to wellover 120% in 2011. Rates in most states are coming in flat

to up slightly. Additionally, companies areunderwriting workers compensationmuch more strictly and discounts arebeing restricted, resulting in higher pre-miums across the board.

U.S. OutlookDespite the catastrophic events from

around the world, the U.S. marketplaceseems to be a concern – but remains pret-ty healthy. Clients can get the capacitythey need at prices that, although higherthan in past years, are still somewhat com-petitive as everybody in this market isdoing the same thing. Clients with excel-lent risks and loss experience are stillenjoying some rate relief, while clientswith more claims are seeing increases ininsurance costs. Those with bad lossexperience will most likely be non-renewed and will be forced to move theirworkers comp policy to the market of lastresort – usually the Assigned Risk Plan –with substantially higher premiums. Property and Workers Compensation

seem to be the leading edge of this trend,while other lines remain fairly flat. We are,however, just now beginning to see rate

increases in the management liabilityareas – Directors and Officers Liability,Employment Practices Liability, etc. Asthe insurance industry enters the rein-surance treaty renewal season, we alsoexpect to see increased rates for reinsur-ance, which most carriers will simply passon to their insureds. We feel it is important to work with you

on strategies for your renewals, and, asour client, we will be talking with your car-rier to understand their thoughts aboutyour renewals.

Jumping to ConclusionsWhile most experts predict a relatively

stable market, Wells Fargo InsuranceServices USA offers the following sugges-tions to help ride out a potentially volatileswing in rates:• Maintain a strong relationship with

your agent so any adverse impact fromchanging terms and conditions is limited.• Limit your dealings with agents that

differentiate themselves from agencypeers.• Focus on Safety and Loss Control with

regard to both tangible and operationalexposures, but also transfer risk via con-tracts where possible.• Review areas where you can sustain

more risk by increasing deductibles andfind other ways to re-structure your pro-gram to bring down costs.• Provide complete and thorough

underwriting data at each renewal toobtain “best in class” pricing �


Insure ThisBy Wells Fargo

Insurance Market Update

For more information on how Wells Fargo In-surance Services can benefit your business,contact Bill Velin at 800-328-6311, ext. 3039,direct 952-830-3039, or by e-mail [email protected].

To help ride out a potentially volatile swing in rates,focus on Safety and Loss Control with regard to both

tangible and operational exposures.


We’ve all had those days rushingaround, trying to get errands done.

So you go “pedal to the metal” thinkingabout what you need to get done, whenit hits you, or you hit it. While your mindwas someplace else, the car in front ofyou stopped and you rear ended it.What could have prevented the acci-

dent? The obvious answer is that youshould be paying attention. But thatanswer isn’t so simple. Driver error is themost common cause of traffic accidents.Many auto recyclers know, never wishingthe driver harm, that the collision recycledparts demand is driven by the accident.The National Highway Safety Admini-

stration’s Director John Maddox wasquoted saying at the First Driverless CarSummit held in Detroit on June 15, 2012,“We need to be crashless, human error isthe critical reason for 93% of crashes.” Of the 30,000 people a year killed in car

crashes, the majority are the result ofhuman error. Though there are no plansto commercialize this technology yet, dri-verless cars could save lives. Carmakers,robotics experts, and suppliers cametogether to discuss the future of theDriverless Car. The non-profit Associationfor Unmanned Vehicle Systems Interna-tional spelled out a foundation for dri-verless cars for the next 10 years. An early example of driverless systems

is anti-lock brakes, performing the func-tion that drivers used to have to do.Another type of driverless system is trac-tion or stability control; it can detect whena car might go into an out-of-control skidor rollover. The existing technologiessuch as self-parking and presafe cruisecontrol are in the vehicles. If technologycontinues on its current course, your carwill eventually do the concentrating foryou.The idea of a driverless car has long

captured the people’s imagination. “Holycow Batman,” the driverless Batmobileand Kitt, my favorite 1982 Firebird Trans

Am or the second generation 2008Mustang Shelby GT could be arriving atauto recycling facilities by 2020. The Defense Advanced Research

Project Agency (DARPA) Urban Chall-enge pits teams against each other to cre-ate cars that can negotiate traffic auto-nomously. The goal of the program isn’tjust to reduce traffic accidents and con-gestion; it’s to produce driverless vehiclesfor combat. Let’s look at some driverlesscar systems that fall a little bit further fromthe sci-fi side of the spectrum.Inflatable Seat Belts: Ford’s inflatable

seat belts were an industry first, anddebuted on the 2011 Explorer. Forddesigned the belts to help reduce head,neck, and chest injuries for rear seat pas-sengers – often children and older pas-sengers who are vulnerable to injuries.Night Vision Goggles (sort of): You

don’t need to be in the military or on anight safari to get your own night visioncamera. Just take a look at Mercedes’Night View Assist, BMW’s Night Vision, orseveral other active and passive automo-tive night vision systems.If the system senses that there could be

a collision with a deer, pedestrian or otherobject, a warning signal will appear on thenavigation system or instrument cluster.Your Attention, Please: Mercedes-Benz

calls it “Attention Assist” and Volvo calls it“Driver Alert Control.” We call it a poten-tial life-saver for anyone who’s ever driv-en while fatigued or distracted.The systems assess whether the car is

being driven in a consistent manner. Ifthe system detects that the driver’s behav-ior is becoming erratic, or the road mark-ers are crossed, an alert will sound.

Volvo’s system even displays a cup of cof-fee and a message, “Time for a break.”Lane Departure Warning Systems:

Almost every luxury brand has offered alane departure system for years, but nowmost manufacturers are offering this fea-ture. The system sounds an alarm whenyou get too close to, or cross a lane mark-er. It may sound annoying, but it forcesyou to pay closer attention.I’m Pickin’ Up Good Vibrations: If you

find noises and alarms annoying, theCadillac XTS will replace those beepswith seat vibrations. Drifting out of a lanetoward another vehicle or failing tonotice a forward or rear object while park-ing are just a few of the situations that willtrigger this system. Cars That Stop Themselves – And Save

Pedestrians: Volvo introduced “CitySafety” on the XC60, which used camerasand radar to help the car stop itself if itsensed a low-speed collision was immi-nent. They took it a step further last yearwith the S60 model’s “Pedestrian Detec-tion with Full Auto Brake.” The new sys-tem sounds an alarm if it senses a personis in the vehicle’s path. If the driver doesnot react in time, the car will auto-activatethe brakes.It’s the closest thing we have to ...

The Driverless CarIt may seem like science fiction, but a

car that drives itself is closer to reality thanyou think. All of the technology abovemoves us towards that goal, and Googlehas taken the next step.The Google Driverless Car is a project

that fits a Toyota Prius with three GPSantennae, radar systems, cameras to readsigns and traffic lights, and a fast-spinninglaser eye that scans for cars, pedestriansand other obstacles. It’s already been test-ed in several cities across the country.Automated Guided Vehicle Systems are

real, but have you heard about the FROGthat can drive your car for you? We’re not

Lessons LearnedBy Ginny Whelan [email protected]

I Wasn’t Speeding, Officer, It Was My Car!

If technology continues on its current course, your car will do the

concentrating for you.


talking about one of Kermit’s relatives;FROG is Free Ranging On Grid. FROGvehicles are equipped with a computerthat contains a map of the area in whichthe vehicle operates. FROG can even beused on public transportation. The prob-lem with FROG technology is that it canbe used in only limited areas.Autonomic Highways are being looked

at as a way to extend driverless technolo-gy to larger areas.Google gets the first licenses for driver-

less cars. Nevada has officially issuedlicenses to Google. Nevada also has a newlicense plate for driverless cars; it is redwith an infinity symbol on it. New Jerseylegislators have introduced new regula-tions for a driverless license. The price of the technology required

for driverless cars is just one of the obsta-cles that must be overcome. According totheDetroit Free Press, Goggle’s driverless testcars have about $150,000 in equipmentincluding a $70,000, lidar (laser radar) sys-tem. But reasonable priced lidar systems

are coming soon. German supplier Ibeowill supply systems to an undisclosed auto-maker in 2014 for $2,500 per vehicle.

Future ImpactHow will driverless car electronic tech-

nology and equipment change the futureof automotive recycling? Recyclers willhave to redesign their dismantling areasand warehouses to address removal andstorage of very complex computer laserand radar equipment. Computer to com-puter diagnosis training for inventory anddismantling technicians will be requiredand offered by the ARA University. The automotive recycling industry will

have to support the ARA GovernmentalAffairs Department to provide constantmonitoring and protection of the “Rightto Reuse,” to make sure that the driverlesscars can be recycled and its recycled partssold by Certified Automotive Recyclers.You may think that the driverless car is fur-ther down the road and you have enoughto be concerned with in today’s cars

before you worry about that. Think again!GM and a Carnegie Mellon Universityresearcher are working together to bringdriverless cars to the market by 2018. Many of you aren’t convinced, let’s be

honest. Will people like to drive their cars(really) or do they want to arrive safelywhile using the personal vehicle comput-er dashboard systems to work, shop, anddownload Driverless Angry Bird. Fade to Star Trek theme music and the

voice over: “Auto recyclers will bravely gowhere the car makers’ vehicles take themto protect the environment and providegreen recycled parts while providing jobsfor millions, and Reduce, Reuse, Recycleat warp speed.” Fade out. �

Much of this article is from “How Driverless Cars WillWork,” http://auto.howstuffworks.com/under-the-hood/trends-innovations/driverless-car1.htm, by Jamie PageDeaton, ©2012 HowStuffWorks, Inc.

Ginny Whelan, an ARA Past President, is Man-aging Director of the ARA Educational Founda-tion and founder of the ARA University, theleading Web-based training resource in auto re-cycling education. Visit www.arauniversity.org.


The relationship between a banker anda businessperson is like many others –

it requires trust, teamwork, and sharedgoals to be truly successful. As a busi-nessperson, it’s important that you doeverything possible to keep things run-ning smoothly in the relationship withyour banker. Keep in mind that yourbanker has a boss, too, and they both haverequirements and responsibilities to meet.Helping him or her meet those duties willgo a long way toward strengthening therelationship. Some of the things you cando to make your life easier include:• Understand how the loan approval

process works – if you ask, they will tellyou. Understand what is required for aloan package and the timing. Never be ina hurry, but always have a good sense ofurgency. • Always furnish reports as required, on

time.• If your insurance lapses or you have

other items that trigger scrutiny, curethem immediately, as in hours if possible.• Always speak to other bank employ-

ees, make sure they know who you areand that you are a “good customer.”Ron: Bankers have to meet certain

requirements and it’s the customer’sresponsibility to help them do that.Bankers have a fiduciary responsibility tothe bank, and they have examiners whocome in, look at what they’re doing, andcriticize it, bless it, etc. So, it’s importantnot to do things that could get the bank-er in trouble. I’d say the first thing is that the cus-

tomer has to deliver their financial state-ments on time. Think about this require-ment when you make the loan. Don’t setyourself up for a frequency or timing issuewith the statements. Bankers understandthat it can take some time to close thebooks, so ask for reporting requirementsthat you know you can exceed. Deliverthem early. And don’t kid yourself; theyknow when your loan payment is late also.

Greg: That’s huge. The No. 1 flag onan account is when a payment is past due,so don’t ever let your payment be late. Ifyour loan payment is due on the first,make your payment on the first, not whenyou’re going to get hit with a late fee. Payit on day one, every time.I have a report on my desk – as does

every loan officer – showing which cus-tomers are one or more days past due.The next day it says they are two days pastdue. The same report shows them yourcollected balances the same day. What doyou think the banker thinks when yourpayment is one day late and your check-ing account balance is low?Ron: And if you’re going to be over-

drawn, you should never be overdrawnon the last day of the month. You can beoverdrawn every day of the month, whichis terrible, but if you are overdrawn (or “inthe cuts”) on the last day of a month, orpast due on loan payments, you are on areport the directors and examiners see.Greg: You should never be overdrawn,

period. Being overdrawn and being pastdue are two big red flags. Ron: A banker once told me that a lot

of customers don’t think it’s a big deal tobe overdrawn, but here’s why it is: All cus-tomers who are overdrawn don’t gobankrupt, but all customers who go bank-rupt were overdrawn. So the point is, it’sa red flag that may precede a failure. Greg: That’s exactly right. And if it hap-

pens frequently, a banker is going to think,“If they can’t handle their money, whyshould we let them have some of ours?”Ron: Most banks have internal and

external examiners. Internal examinersare hired by the bank, or as contractors,to review the files before the external exam-iners come. (External examiners work forone of the federal or state regulatingagencies. When the external auditorsarrive, one of the first things they look atis the internal examiners report.) Greg: Right. If a bank isn’t big enough

to have an internal examiner, it usuallypays a third party to do that, becausenobody wants an external examiner tofind a problem. I want either my loan offi-cer or myself or a third party that I hireto find any problem.Ron: So, what else do examiners look

at when they come in? They look at thebiggest loans, because if those go bad theycan take the bank down. So as a business,if you have one of those big loans, youneed to make sure you’re doing well. That’s one reason that I like being a

small fish in a big sea. I like having a $1million loan with a bank that has a $5 mil-lion loan limit. The examiners won’t lookat a $1 million loan nearly as hard asthey’d look at a $5 million loan, in a bankthat has a legal loan limit of $5 million. The logic is simple, a loan loss that size

won’t take the bank down. The excep-tion, of course, is exceptions. If you are inthe “cuts,” late on a note payment, theywill likely review your loans every timeregardless of size. Greg: If you’re on the past due list,

regardless of size, you’re going to getlooked at. It all does become relative to size. And

the one thing that’s even worse thanbeing past due at the end of the monthis being past due at the end of the calen-dar quarter. Examiners look at a “callreport” that has all that information.When the end of the quarter is near, I amall over my staff, I want everything cleanas a whistle. If things aren’t in great shape,the exam is going to be a tough one, asthey know we had a chance to solve prob-lems but didn’t. This sends a message thatwe are sloppy. This a continuation of excerpts from

Getting To Yes With Your Banker. �

That’s My OpinionBy Ron Sturgeon [email protected]

How Not to Get Your Banker Fired (And When to Fire Him)

Since 2001, great ideas to improve your autorecycling business have been found on Ron’sWeb site, www.autosalvageconsultant.com,the definitive source for recyclers’ manage-ment and training needs.

In an effort to make sure that individualautomotive recyclers are aware of safe-ty practices required by the U.S. Occupa-tional Safety and Health Administra-tion (OSHA), ARA’s Safety Committeecontinues its new Safety Tip program andis pleased to share its new tip on use offire extinguishers. The committee hopesthat you add this one next to the alreadypublished tip on gas cans.Did you know that appropriate use of

fire extinguishers could save you thou-sands of dollars in fines? Improper fireextinguisher management and use is oneof the top 10 most frequent violations forour industry SIC code 5015, resulting inhuge fines. OSHA requires that you know what

kind(s) of fire extinguishers you need,where to place them, and how to main-tain them. Your employees must knowhow to P-A-S-S for you to avoid fire extin-guisher use violations. OSHA fines areminimal, however, compared to losingyour business to fire damage because ofout of date extinguishers and lack oftraining on their proper use. Read the following protocol to make

sure you know exactly what OSHArequires for the safe and effective han-dling of portable fire extinguishers andthen log onto ARA’s BizUnite market-place to inquire about your discount onthose extinguishers!

PORTABLE FIRE EXTINGUISHERS

OSHA Standard 1910.157OSHA regulations specifically require

that fire extinguishers be provided onpowered platforms and in work areasinvolving use, storage, or dispensing offlammable, explosive, or combustiblematerials, hazardous wastes, and clean-upof hazardous materials releases.Every employee should be taught how

to use a fire extinguisher and should befamiliar with the letter or picture symbols

identifying the type(s) of fire on which itmay be used.

Type of Fire Extinguisher Your fire extinguishers should have

ABC ratings on them. These ratings aredetermined under ANSI/UL Standard711 and look something like “3-A:40-B:C.” Higher numbers mean more fire-fighting power. Use a professional fireextinguisher service which will protectyour employees and business as well asprovide back up fire extinguishers whenthe original ones are removed for main-tenance and recharging.

AccessibilityOSHA requires that employers label,

mount, and identify fire extinguishers inthe workplace so employees can accessthem easily without risking injury. Once

mounted, there must be 36 inches ofclear space surrounding the fire extin-guisher.

LocationsEmployers should place fire extin-

guishers throughout the workplace sothey are positioned near areas where firesare most likely to occur and near areaswhere fires would be large or poseextreme risk should they did occur. Fireextinguishers should be distributed sothat the travel distance from the hazardarea to an extinguisher is between 50 and75 feet depending on the class of fire.Exact distances may vary by municipali-ty. Please check with your fire depart-ment for local requirements. Although not mandated, some busi-

nesses have posted maps of fire extin-guisher locations throughout theirfacility.

Inspections/RecordkeepingAccording to OSHA, fire extinguishers

should receive monthly visual inspectionsand yearly maintenance checks, whichthe employer should keep a record of.Use of inspection tags is recommended.The people who inspect fire extin-

guishers should have proper training onhow to use and test a fire extinguisher.Fire extinguishers with stored pressuredry chemicals should be emptied andrefilled at least once every six years.Carbon dioxide extinguishers and car-bon dioxide or nitrogen cylinders shouldbe tested at least every five years.

Employee Training –Know the P-A-S-S TechniqueEmployers who provide fire extin-

guishers in the workplace also need totrain their employees on how to usethem if a fire occurs. Every employee hasto sign a form that confirms that he hasbeen trained annually. P-A-S-S is the technique that best


Safety MattersInformation from the ARA Safety Committee

OSHA-Approved Fire Extinguisher Use

OSHA requires that youknow what kind(s) of fireextinguisher you need,where to place them andhow to maintain them.


describes how to use a fire extinguisher.To operate a fire extinguisher....• Pull the pin at the top of the extinguisher. The

pin releases a locking mechanism and will allow youto discharge the extinguisher. • Aim at the base of the fire, not the flames. This

is important – in order to put out the fire, you mustextinguish the fuel. • Squeeze the lever slowly. This will release the

extinguishing agent in the extinguisher. If the han-dle is released, the discharge will stop. • Sweep from side to side. Using a sweeping

motion, move the fire extinguisher back and forthuntil the fire is completely out. Operate the extin-guisher from a safe distance, several feet away, andthen move towards the fire once it starts to dimin-ish. Be sure to read the instructions on your fireextinguisher – different fire extinguishers recom-mend operating them from different distances.

Fire Extinguisher Training for EmployeesThe employees that are charged with the use of

the portable fire extinguishers are required byOSHA to have initial training on their use, andannual follow-up training. Portable fire extinguish-er maintenance companies that are authorized bythe manufacturer may offer training sessions to cus-tomers. Fire extinguishers are labeled with their type and

instructions.Portable fire extinguisher training consists of

reviewing with personnel the types of fire extin-guishers located in the building, the type of fire eachone can extinguish, and the proper use of the unit.There are several different types of fire extinguish-ers, such as ABC dry chemical which is for generaluse and a Class “D” fire extinguisher, which is for useon flammable metals. The first rule that is taught in training is to call 911,

no matter what the size of the fire is. The second rule is to evacuate the building. The third rule is to then determine if the fire can

be put out with a portable fire extinguisher. Employees should be trained to assess the safety of

the situation before attempting to extinguish the fireby themselves. They should also be trained on theactual use of the extinguisher, and should frequent-ly review the types of extinguishers in their workplaceand the materials they can extinguish. Fire extin-guishers are required by law to have proper labelingthat gives directions for their use and the employeeshould review those directions periodically. �


If you have been in the recycling busi-ness for very long, then you have seenthe way regulations constantly evolve.Laws protecting the environment are,after all, a relatively new concept asopposed to Maritime or Criminal Law. Asthe face of the planet is changed byhuman inhabitation, so must the ways wehandle our natural resources change.The more people there are on the plan-et, the more we have to account for theenvironmental impact of those people. In reality, there are a number of factors

that go into new permits and related fees.It is safe to assume, however, that onetrend you can expect is that the fees asso-ciated with regulatory compliance willcontinue to rise, and this happens mostoften at the state and local levels. Depending on the state in which you

operate, the state permitting fees canrange dramatically. Some states haveannual fees in addition to the applicationfee. In Texas, for example, the applicationfee for a Storm Water Permit runsbetween $100-$200, with an annual fee of$200/year, whereas Virginia charges a$500 application fee with no annual fees.Local governments are also getting in

on the action. While the state StormWater Permit fees in North Carolina arerelatively low, the city of Durham charges$4.50/month per 2,400 square feet ofimpervious surface area (asphalt, con-crete, etc.). El Paso, Texas, charges $3.00/month per 2,000 square feet of impervi-ous surface, and Richmond, Virginiacharges $45/year per 1425 square foot ofdeveloped area. Those fees add up fast fora facility larger than 10 acres, with exten-sive concrete in place.In other words, the overall cost of com-

pliance has gone up and will likely con-tinue to do so. In addition, it is becomingincreasingly difficult to meet evolving per-mit requirements. Permit requirementsare increasingly stringent, as demonstrat-ed by recent permits issued in such states

as Florida, Virginia, North Carolina,Washington, and New Jersey. State agen-cies have also begun to step up enforce-ment. Inspections are becoming morefrequent and more violations are beingissued by the inspectors. This is due, inpart, to environmental fines providing arevenue stream for the agencies and stategovernments. Even on the federal level,enforcement has stepped up, specificallyregarding refrigerant recovery and SPCC(Spill Prevention, Control and Counter-measures) requirements.

Looking ForwardTwo subjects that we will continue to

hear more about in the coming years willbe watershed-specific regulations andTotal Maximum Daily Loads (TMDLs). Watershed-specific regulations have

been on the books for a long time, butare becoming more popular as local gov-ernments get more involved in matters ofenvironmental protection. An examplewould be the Edwards Aquifer watershedin Austin, Texas. The Edwards Aquifersupplies water to a large portion of Cen-tral Texas, and very stringent regulationsare enforced on any industry takingplace inside the aquifer’s “recharge zone.”TMDLs establish numeric effluent lim-

itations for pollutants of concern in cer-

tain watersheds. For example, if the waterbody your storm water empties into isimpaired for Nickel, there will be a spe-cific TMDL developed for Nickel that youwill not be permitted to exceed. Currently, when you exceed a bench-

mark value you are required to take cor-rective action to bring the level of thepollutant in your storm water dischargebelow the benchmark value, and you areonly issued a violation notice if you fail torespond to the exceedance. With TMDLmonitoring, it becomes a permit violationimmediately upon exceeding the limit. Now for the good news: You have a say

in the legislation that determines the feesand requirements set forth by these per-mits and regulations. You also have alliesin your state and national associations,and James Environmental Management(JEM). By taking an active role in the associa-

tions for your industry, you help toempower your biggest advocates in thelegislation process. Most permit negotia-tions undergo a public comment period,allowing you the opportunity to influencewhat the end result will be. More oftenthan not, the JEM Team is active in thesediscussions, advocating on your behalf,even if we do not work for you directly.As time goes by, the industry continues

to develop and change. Some of thechanges are painful, while others canprove to be lucrative as well as beneficialto future generations. The old days oflower environmental compliance costsare a thing of the past, but so is the oldway of doing things. The regulatory cli-mate is ever-changing, but the automotiverecycling industry is more important andmore prominent than ever. �

Green SceneBy Mike James [email protected]

The Ever-Changing Regulatory Climate

With over 25 years experience in pollution pre-vention, Mike James is President of James En-vironmental Management, Inc., specializing inenvironmental compliance assurance and cur-rently serving over 1,200 facilities in the U.S.

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Automotive recycling leadersfrom around the globe share their views on the State of the Industry.

Automotive recycling leadersfrom around the globe share their views on the State of the Industry.

Art: iStockphoto.com/Duncan Walker/Oleksiy MarkRecycled cars images are from Al’s Auto Parts.

ll industries move along a similar path asthey develop and mature,” says SteveFletcher, Managing Director, AutomotiveRecyclers of Canada. “Different countriesare on different parts of that path.There are a series of potential out-comes that depend on the choices

made today (or made on your behalf) that will affect yourfuture. By looking at how other countries deal with theirindustry, you are actually peering into the future. So you canchoose some parts of the path that are desirable and try toavoid some of the paths that are unpleasant.”This effectively introduces this compilation of articles

written by industry leaders and auto recyclers from aroundthe world, highlighting common challenges of auto recy-clers, differences in methodology of governments, and theresilience of spirit of the industry to rise above the noise,to work toward positive and viable solutions.

— Caryn Smith, Editor

“A“A

Report On

End-of-Life Vehicles Worldwide

The professional automotive recyclingindustry is becoming more global witheach passing day. As in other sectors,

technological advances are eliminating pastbarriers to foster robust international com-merce. One needs to look no further thanthe brisk, worldwide commerce taking placeat salvage auctions to see evidence of thisgrowth over the pastdecade.

In recent literature, one of thebig U.S. salvage auction compa-nies indicated that it now sellsvehicles to buyers in more than100 different countries. The com-pany further notes that the focuson international buyer marketing and services hasresulted in a 205% growth in their global buyer base. With further development in emerging countriesaround the world, the importance of and opportuni-ties for the automotive recycling industry will growexponentially. Just consider the following statistics.According to the auto industry research company,Ward’s, the global car population topped the 1 billionmark in 2010 (see chart). In 2011, the InternationalTransport Forum esti-mated a global vehiclefleet of 2.5 billion by2050. And in 2012,for the first time inhistory, over 60 million passenger cars will be pro-duced globally in a single year (or 165,000 new carsproduced every day). Indeed the expanding globalcommerce of vehicles and parts provides multipleopportunities for professional automotive recyclersto grow their business – the challenge is now ours totake advantage of this very large market sector.Those entities which support the automotive recy-cling industry are quickly positioning themselves toeffectively move into this global commerce. In Mayof this year, for example, opportunities in the inter-national automotive recycling community were oneof the reasons cited for the Solera Holdings, Inc.acquisition of Actual Systems. Tony Aquila, Solera’sfounder, Chairman, and Chief Executive Officer stat-ed that their “[Actual Systems] acquisition providesus with additional opportunities to create value for

our clients and increase revenue per transaction forSolera operating entities outside of North America,especially as more countries embrace green partsrecycling alternatives and engage in cross-borderparts trading.” Actual Systems has now successfullygrown beyond North America and entered the mar-ketplace in Australia, the United Kingdom, theNetherlands, Ireland and Spain.

Another major act of globalpenetration was taken earlier thisyear in China, which changed therecycling landscape worldwide. InFebruary, Insurance Auto Auc-tions announced an agreementwith Chen Jia, a wholly-ownedsubsidiary of Jiangsu Chenlong

Resource Recycling Development Co. Limited.Chenlong Recycling was one of the first companies toobtain a recycling permit from the Chinese govern-ment that allows the importation of salvage vehiclesfor the purpose of recycling. Until recently, Chinese law prohibited salvage vehicleimports into mainland China from the United States.In the announcement, Tom O’Brien, IAA chief exec-utive officer, said: “This agreement helps us achieve

our growth strategy byexpanding our globalbuyer base in a regionwith a fast-growingneed for scrap metal.”

O’Brien went on to state that, “We are pleased thatour long relationship with Chen Jia has added tangiblevalue for vehicle sellers at our auctions. Their initialpurchases at our locations along the West Coast havealready created increased competition for vehiclesand may eventually expand throughout the greaterUnited States.”In addition to expansions in Europe, vehicle recy-cling markets are being redefined in countries suchas Russia, Mexico and India. In July, Russia decidedto introduce a vehicle recycling tax that could set thestage for the development of a modern car scrappingindustry in the country. A recent Pricewaterhouse-Coopers report estimates that an investment of atleast $2 Billion (USD) by the Russian governmentwill be required to install efficient vehicle disposal


International Automotive Recycling: A Global Awareness of Significant Issues Ahead United StatesMichael E. Wilson, CEO • Automotive Recyclers Association (ARA) • E-mail: [email protected]

Continued on page 38

The challenge is now oursto take advantage of this very large market sector.


The auto recycling industry in Australiais going through a period of dramaticchange. Factors influencing that

change include:• LACK OF EFFECTIVE INDUSTRY REGULATION. TheAustralian auto recycling industry is largely unregu-lated. There is no national regulation that has anyimpact on the operation of the industry. While eachstate has some form of regulation there is little or noenforcement of the regulations that do exist.

• INCREASING IMPACT OF “ILLEGITIMATE” OPERATORS

IN THE ELV SECTOR. As a consequence of the lack ofeffective regulation, there has been a dramatic risein the number of “illegitimate” businesses operatingin the auto recycling industry. These businessesoperate outside the law – they do not comply withTaxation, Occupational Health and Safety orEnvironmental laws. Their operating costs are muchlower than those of “legitimate” businesses, and theycompete for stock on an unequal basis. Their opera-tion is having a significant impact on the “legitimate”businesses.

• INTERNATIONALIZATION OF THE VEHICLE SALVAGE

INDUSTRY. Major structural changes are occurring inthe vehicle salvage industry with increasingly largervolumes of salvage vehicles being exported (eitherwhole or broken up).

• CHANGES IN WRITTEN-OFF VEHICLE LAWS. Onestate (New South Wales) has “gone it alone” inrequiring that all written-off vehicles are “statutorywrite-offs” – the vehicle can never be re-registered.This change has had a generally negative effect onthe auto recycling industry in New South Wales.Other states have not gone as far as NSW, but theyare introducing new laws relating to “economicwrite-offs” – vehicles that can be repaired but mustpass stringent tests to be re-registered. The effect ofthese new laws will be to increase the number ofstatutory write-offs by about 30%. This is likely tohave a negative impact on the auto recycling industrynationally.

• INCREASING DIVIDE BETWEEN “PARTS SALES” BUSI-

NESSES AND “SCRAP METAL” BUSINESSES. In years pastan auto recycling business was first and foremost asecond-hand parts business that also made moneyfrom scrap metal. Changing technology of vehicles,changing customer needs, advances in business

management systems and increasing “international-ization” of the scrap metal industry are now leadingto a situation where businesses are much more spe-cialized – they are principally a parts sales business orprincipally a scrap metal business;

• CHANGING CUSTOMER NEEDS AND EXPECTATIONS.

Body repairers and mechanical repairers have theoption of using new OE parts, new after-market partsor second-hand parts. They will often choose new parts because:

• Sourcing the part is easier;• The purchasing process is easier (there isless risk of a wrong part being delivered orof the part’s condition not being as describ-ed to them); and

• The warranty is often better. In the eventof a failure, the repairer in many cases iscovered for their installation time as well asreplacement of the part.

At present, only about 5% of parts used in crashrepairs are recycled parts. If auto recyclers are to sellmore parts to these businesses, they must changetheir business practices to meet the needs of thismarket.• THE POWER OF THE INTERNET. The internet hasalready dramatically changed the way the second-hand parts industry operates, and this process ofchange will continue. Whether for parts sourcing orELV disposal, consumers are increasingly using theinternet to find a supplier.• GENERATIONAL CHANGE. First generation busi-nesses owners are reaching retirement age. Theymay or may not have family members who wish totake over the business. If not, they have to find abuyer and that can be tough.

• BUSINESSES ARE BECOMING INCREASINGLY HARD TO

SELL. Often persons wanting to “get into auto recy-cling” will only be offering bargain basement pricesfor an existing business because there are fewbarriers for them to start from scratch in a new loca-tion;• INCREASING VALUE OF INNER CITY LAND. The risingvalue of land on which first generation businessesoperate means it is often better for the owner to shutthe business rather than sell it is a growing concern(the land being worth significantly more than theexisting business value).

The State of Automotive Recycling in Australia: A Period of Dramatic ChangeBy David Nolan, Executive Director • Auto Recyclers Association of Australia Limited • E-mail: [email protected]


What Needs to be DoneThe solution to some of the challenges outlinedhere does not lie within the control of individualauto recycler businesses (or their industry associa-tion). For example, changing land values, family suc-cession, scrap metal prices, and the marketability ofauto recycling businesses are not factors readily ableto be controlled by any business owner. But, for parts sales businesses, solutions to some ofthe challenges are within the control of management.These include:

• ADOPTION OF A MODERN ELECTRONIC INVENTORY

MANAGEMENT SYSTEM WILL BE CENTRAL TO THE FUTURE

SURVIVAL OF ANY SECOND-HAND PARTS SALES BUSINESS.

Both trade customers and the general public willrequire higher standards of customer service thatwill only be able to be delivered by businesses oper-ating an electronic inventory system.

• ADDRESSING CUSTOMER RELATIONSHIPS. Taking allpossible steps to make the “product” as accessible as

possible to a potential customer, looking after thecustomer, and ensuring that a mechanical repaireror crash repairer can make a better margin using asecond-hand part than they can from a new part.

• EMBRACING THE INTERNET. Having your businessvisible on the Internet, promoting the features thatdifferentiate you from others and using resources,such as eBay, are all factors that will affect the com-petitiveness of a parts sales business.

The Biggest ChallengeLack of effective regulation is the biggest impedi-ment to “cleaning up” the auto recycling industry inAustralia. End-of-Life motor vehicles are a significantand environmentally damaging waste stream.

Russia Juggles Vehicle Imports,Duties, WTO and RecyclingBy Delanne Bernier • ARA Director of Policyand Political Affairs

Automotive recycling is atvarious stages of maturityaround the globe, but even fledgling recycling

programs might be gaining momentum for reasons otherthan consumer needs and/or the environment.

For example, it was recently announced that Russia will beimposing an automotive vehicle recycling tax that essentially pitsforeign car imports against its domestically manufacturedautomobiles which account for approximately 2.5 percent of the total Russian gross domestic product (2009 data). To avoid the tax,domestic automobile manufacturers will have to guarantee that theywill recycle end-of-life vehicles.

The expected tax rate of between Rbs20,000 to Rbs45,000 ($612 to $1,375), depending on engine size, will be imposed on vehicleimports as of September 1, 2012. Some in the international press,however, are speculating that this recycling tax was engineered tobolster Russia’s domestic industry – an industry that will benegatively impacted by lower import duties necessitated by Russia’simminent entry into the World Trade Organization (WTO).

Regardless of the real intent of this tax, Russian automotiverecycling is an industry clearly in its infancy. According tosteelonthenet.com in 2009, there were ... “only about five smallcapacity [scrap] facilities which recycle old cars; these recyclingcentres generally have poor press technology and use practices thatlead to high contamination of the resulting scrap.”ARA RegionalDirector Bob Phelps (Central Auto Recyclers, Concord, NewHampshire) visited Moscow 5 years ago and commented on the

dichotomy of the very affluent and their luxury cars versus theextreme age of the cars owned and operated by those who are notpart of the elite class. He noted that owners would do everything intheir power to keep their cars running.

In direct contrast to this societal thought, and most likely in an effort to aid the Russian economy, in 2010 the country had a “cash for clunkers” program which provided a rebate for thepurchase of new domestically-produced vehicles if owners traded in their older models.

Concurrently and not surprisingly, in that same year, Russia’s carproduction increased by a staggering 92.6% over 2009 levels to yield1.15 million cars, according to the Russian Trade and IndustryMinistry. What is not known is what happened to the cars retiredunder the cash for clunkers program. Certain events, howeverindicate that Russia needed assistance from other nations to addressthis issue.

By the end of 2011, Russia was aided by the Dutch to helpformulate a more comprehensive automotive recycling system. TheDutch car registration body, RDW, and other Dutch organizationspartnered with the Russian University of Nizhny Novgorod to institutereuse and recycling systems and solutions. (Nizhny Novgorod is thelargest automotive producing region in Russia.) The internationalrecycling population looks forward to learning more about thesesystems and solutions and welcomes Russia to the world stage ofautomotive recycling. �

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Government action in Australia has been largely invisible.


This is recognized by governments in most of thedeveloped world, and those governments have acted.In all European Union countries, and in Japan,Korea and China, the national governments haveenacted regulations aimed at minimizing the detri-mental environmental impact of ELVs.Government action in Australia has been largelyinvisible. Only the National Motor Theft ReductionCouncil, a joint Government and Industry Council,has shown clear leadership in addressing the defi-ciencies in the ELV management system in Australia.Despite overwhelming evidence of their negativeenvironmental impact, the federal government hasnot even listed ELVs as a priority waste stream. Most ofthe authority for implementing and enforcing envi-ronmental regulations rests with state governments,but they don’t have resources to address the problem. Effective regulation is difficult to achieve becausethere are many parties who are part of, or whoseactions impact, the end-of-life vehicle processing“industry.” These parties include:

•Vehicle manufacturers• Insurers•Auction houses•Auto recyclers• Shredders• Landfill operators• Scrap metal dealers• Exporters of whole vehicles and vehicle parts

Product Stewardship – A Platform for ChangeOne avenue for potentially “shifting the ground”lies in the Product Stewardship Act passed by theFederal Parliament in May 2011.The Auto Recyclers Association of Australia has beenengaged in consultations with all Australian manufac-turers, and with the Federal Department of Environ-ment, to explore means by which a Voluntary ProductStewardship Scheme covering ELVs might be intro-duced under the umbrella of the above legislation.The best prospect for change in Australia willcome from governments, vehicle manufacturers andauto recyclers working together in a co-operativeway. We must collectively find a solution that providesbenefits to each party and at the same does notimpose new costs or administrative burdens.Voluntary Product Stewardship offers the best oppor-tunity for development of such a scheme in Australia.“Working Together,” the theme for a major interna-tional conference – the 5th Asian AutomotiveEnvironmental Forum – will be held on the GoldCoast, Australia, from November 29 to December 1,2012. Visit www.autoenvironment.asia for details. �

In recent years, there has been an increas-ed number of international conferencesheld around the world that have fostered

opportunities for the auto recycling frater-nity to meet and exchange views.

Having attended many of these events I find itintriguing to learn just how much we all have incommon and how many of the issues we face are, infact, global issues. One of these issues is the role autorecyclers have in managing the impact of end of lifemotor vehicles (ELVs) on our environment.Many countries have developed, or are in the pro-cess of developing, strategies to manage the environ-mental impact of ELVs. These are culminating in arange of national or regional policies which have notnecessarily been developed with any global collabo-ration in mind. It is only very recently that theUnited Nations has been considering some kind of

international protocol for ELVs. Indications are thatthis will need to be a very loose set of guidelinesbecause it will need to accommodate all those coun-tries that have already commenced their own indi-vidual programs. Regardless of the design of the pro-gram, in all countries the auto recycling industry issaddled with the principal role.Those of us who attend the conferences have beenhearing reports of how different countries are pro-gressing with their end-of-life vehicle programs.Some have been in place for nearly ten years nowand we are learning a great deal about the successesand failures of the different strategies. Exposure to the full gamut of reports serves toincrease the collective state of knowledge amongstthose who attend many of these conferences. Mostof these regular attendees are those representing theauto recycling industry itself. It is from this groupthat a very well-informed common view on the ELVissue is developing. It is conceivable that before toolong, our representative bodies and associations will

Auto Recycling – a GlobalPerspective in AustraliaBy Mike Third, Managing Director • Total Auto Recyclers •Melbourne, Australia

Our role is vital to our communities and

if we didn’t exist ... they would have to invent us!


be able to take a unilateral position on behalf of theauto recycling industry worldwide. This would mean that the auto recycling industryis in a position to assist national and state authoritiesto develop effective ELV regulations, which would beharmonized with a global industry policy. The industry will be able to put forward a globalposition statement based on the highest state ofexpert knowledge and experience available at thetime. Initially this position statement may only outlinesome fundamental principals that are clearly practicaland appropriate as a starting point, though eventuallyit would address more complex aspects of a globalELV policy. A commendable goal for our industry associationswould be to initiate this global consensus statementat the next auto recyclers International Roundtablemeeting scheduled to coincide with the ARA confer-ence in Arizona in 2013.Crucial to the success of any ELV policy is its abilityto ensure that the vast majority of ELV’s are capturedby the approved system. Clearly there is no benefit inhaving a system that can’t guarantee most of the cars


are dealt with in accordance with the rules. To datethis is where almost all the existing plans fall short. Since the implementation of these schemes, bonafide auto recyclers have been required to bear thecost of meeting tough new regulatory criteria on thebasis that they would benefit from gaining access tomore vehicles as non-compliant operators fell by thewayside.Unfortunately, this has not generally occurred. Insome places recyclers report receiving half the vehiclesthey did before regulations were enacted. There issystemic “leakage” of vehicles in most jurisdictionsdue to a lack of real incentives for vehicles to end upat the right place. It has become more lucrative todivert vehicles from the sanctioned ELV recyclingchain to alternative options including the exportmarket, where they eventually become an environ-mental problem in some developing country. Allowing the environmental impact of ELVs tobecome some other country’s problem is just as irre-sponsible as allowing the export of any other haz-ardous waste. Diversion of ELVs to the export market is a phe-nomenon threatening the viability of recyclers in sev-eral countries – particularly Europe, the UnitedStates, and Japan where hundreds of recyclers havebeen forced to close their gates over the past year dueto a lack of ELVs. Most ELV regulations have been enacted or mod-eled on schemes in place pre-GFC, when a bullishscrap metal market was seen to underwrite the abilityof the auto recycling industry to bear the cost of com-pliance with any regulations. At the time, car manu-facturers promoted the view that the inherent valueof ELVs was so lucrative that the recycling industrycould afford to bear the cost. Well, things have changed. Relying on the scrapmetal market to underwrite any environmental sus-tainability program is unsustainable, to say the least.What happens when the scrap value drops to a pointthat it doesn’t cover the cost of compliance and pro-cessing? Nobody except the illegal operators couldafford to handle ELVs.Arguably, it is already not economically viable in

some places to legally process many older makes andmodels of small cars unless overall volumes areincreased significantly. Only informal (non-conform-ing) operations with their low overhead costs can stillafford to handle these cars.The economic viability of a scheme should notdepend on the scrap price, nor should it be under-written by an unpredictable second-hand parts mar-ket. As societies prosper, the need for second-handparts diminishes and you can’t sell parts that anybodywants.The welfare of our planet and our society shouldnot be dependent on whether or not auto recyclersare having a good year.The environment is everyone’s responsibility, notjust recyclers, not the car manufacturers, but everyonewho benefits from the existence of motor vehicles.Logically this should be a shared responsibilityengaging all parties, including consumer auto owners.We need a more balanced approach that spreads theburden amongst all stakeholders. It’s important tocreate incentives for the various stakeholder groupsto “buy in” and want to see a scheme succeed. It is afundamental fact of human nature that “the carrot ismore powerful than the stick.” Often, if the carrot isbig enough, you don’t need a stick.The countries that have been most successful inaddressing the “leakage” issue are those that haveadopted a funded system to ensure that most ELVsend up being accounted for. ELVs need to have aninherit value, which can only be realized when takento the authorized recycling facility.How this can be achieved is a topic for another arti-cle, but in the meantime, what say we start to thinkabout the first of the fundamental principals of an“Auto Recycling Industry’s ‘Global Position Statementon ELV Policy.’”Perhaps we could begin with the idea that; “Managing the environmental impact of ELVs iseverybody’s responsibility, not the duty of any onestakeholder such as the auto recycling industry. Theauto recycling industry worldwide will support anend-of-life vehicle directive that provides adequateincentives to ensure that a critical mass of ELVs is cap-tured by the system. “The critical mass being the percentage of ELVsthat are captured by the approved system in order toensure ongoing viability for those authorized to pro-vide proper treatment and recycling processes withoutwhom measurable benefits to the environment cannot be sustained.”Our role is vital to our communities and if wedidn’t exist ... they would have to invent us! �

The welfare of our planet and our society shouldnot be dependent on

whether or not auto recyclersare having a good year.


Peering into the Future CanadaSteve Fletcher, Managing Director • Automotive Recyclersof Canada (ARC) • E-mail: [email protected]

The Automotive Recyclers of Canada(ARC) association has been very activelately creating programs and informa-

tion for recyclers across Canada and increas-ingly around the world.

ARC began in 1995 as an entity to share informa-tion across provincial boundaries. In Canada, almostall legislation and regulations relating to vehiclesexists at the provincial level. ARC’s role was to pro-mote the cross-border sharing of information – bothsuccesses and challenges – between its provincialassociation members. It has rapidly grown in recentyears and has some very bright prospects ahead of it.There are approximately 1.6 million end-of-lifevehicles generated every year in Canada. It is estimatedthat there are approximately 1,800 legitimate or atleast somewhat permanent businesses actively pro-cessing these vehicles. Unfortunately, as with othercountries around the globe, there are probably twoiS

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to three times that many illegitimate and/or ill-equipped individuals and businesses also dabbling inthe field of auto recycling. And that has been creatingextraordinary stresses on the legitimate industry.While there are many laws, regulations and rulesthat legitimate recyclers must adhere to, enforcementof these laws – even knowing that these laws are beingbroken by the underground economy – is very slack.So for all intents and purposes the auto recyclingindustry is virtually an unregulated marketplace.Consumers, dealers, governments – even the industryitself does not know who is a legitimate business capa-ble of properly recycling today’s complex vehicles.Several years ago, ARC was commissioned byEnvironment Canada to create and deploy a Codeof Practice for the industry, ostensibly to support theNational Vehicle Scrappage Program – Retire YourRide. ARC used this opportunity to codify the mini-mum compliance obligations of the industry andadd in the best management practices to extend theregulations and make it relevant and useful to autorecyclers. We developed the Code, found andtrained Auditors to visit every participating recycler,and trained over 300 recyclers to the Code. Theauto recyclers’ immediate reward was to obtain vehi-cles through Retire Your Ride. We were fortunate in that several auto manufactur-ers also stepped up with their own incentives to fur-ther drive volume to their dealerships and thevehicles all came to certified ARC Members. By thistime, not only was the Code of Practice helping toimprove the performance and profitability of theindustry, but vehicles were a much welcomedreward – they became the inventory that our prof-itable parts business is based on.When Retire Your Ride ended in March 2011,Environment Canada had the vision to ensure theCode of Practice lived on as a legacy of the scrappageprogram, and the Code was updated and rebrandedas CAREC – the Canadian Auto Recyclers’ Environ-mental Code. Ownership of CAREC was officiallytransferred to ARC in the Summer of 2012 and ARCis now in possession of the processing standard thatwould become the basis of our future.The ARC Board of Directors had learned a veryvaluable lesson early on – if you demonstrate that youare a responsible industry, then good things will even-tually flow to you. You need to move beyond talkingabout what a great business or industry you are – youneed to physically demonstrate it every day. That iswhat CAREC has done for us. It shows what ourmembers represent, and it is a lot easier to begin topoint to the businesses that don’t meet CAREC and

the consequences of a lack of enforcement of therules.Another turning point for ARC was our relationshipwith the auto manufacturers – both with OEMsdirectly and with their industry associations. InCanada they are the Canadian Vehicle ManufacturersAssociation (CVMA) and the Association of Interna-tional Auto Manufacturers of Canada (AIAMC).With these two organizations (plus the CanadianAutomobile Association and some influential envi-ronmental groups) we formed a coalition to advocatefor a standards-based license that would lead toindustry stewardship.This is where ARC’s forays into the internationalworld of auto recycling began to pay off. We havebeen able to look at a number of different legislativeoptions around the world and make recommenda-tions to our government(s) about a revolutionary wayto regulate the industry. Recyclers working with automanufacturers on industry stewardship (as opposedto the simpler concept of extended producer respon-sibility) with an industry self-managed oversight bodyto ensure all vehicles are processed by licensed autorecyclers. ARC proactively submitted a White Paper on AutoRecycling to the Canadian Council of Minister’s ofthe Environ-ment (CCME); led the two-day Forumon the Future of Auto Recycling; and we are activelyengaging a variety of provincial governments to workthrough the implementation issues of our IndustryStewardship proposal. While we have much work todo, we have a strong path forward and we are con-tinuing to develop and nurture the basic buildingblocks of a successful campaign. Much of ARC’s work on a standards-based licensedeals with the acquisition of vehicles to build ourinventories. But we are also working on trying to sellmore parts.CAREC helps on the parts side as well as providinga base to market the industry and for individualmembers to market themselves. We have also beenworking through our Quebec and Ontario associa-tions to promote Green Recycled Parts™ as a branded,copy-written way to sell more parts from end-of-lifevehicles. ARC is working with ARA now to extendGreen Recycled Parts™ across the world. This initiativehelps us all – it demonstrates to our increasinglyglobal partners – repairers, insurers, manufacturers,that the auto recycling industry is also global.The International Roundtable on Auto Recycling(IRT) has played a big role here. The IRT is an infor-mal gathering of professional auto recyclers. Theymeet every 14-18 months, hosted by a different


national auto recycling association. We just completedthe 6th edition in Liverpool, England. ARC had theopportunity to host the 5th IRT in Quebec City in2010, and the benefits were enormous. We were pro-vided the chance to promote the industry withinCanada on a global scale, and we got the chance tomeet with our global auto recycling partners to sharestories, data, challenges and opportunities. The IRTs are an opportunity for anyone with aninternational vision or perspective to participate –front-line auto recyclers mingling with national asso-ciation heads. Suppliers from different countriescomparing and sharing their products. The resultscan be extraordinary. The next IRT will be held inPhoenix, Arizona, in 2013, in conjunction with theARA Convention. ARC will be there and we hopeyou are too. �

As the national voice of the automotive recycling industry, ARC provides a forum forthe channelling of information and addressing Canada-wide concerns. Member As-sociations: Automotive Recyclers Association of Atlantic Canada (ARAAC), AlbertaAutomotive Recyclers and Dismantlers Association (AARDA), Automotive Recyclersof Manitoba (ARM), Association des Recycleurs de Pièces d'Autos et de Camions(ARPAC), British Columbia Automotive Recyclers (B-CAR), Ontario Automotive Recy-clers Association (OARA), Saskatchewan Automotive Recyclers Association (SARA).

Automobile manufacturing is amongIndia’s fastest growing industries.Rising income levels, low levels of

penetration, demographic factors and rapidincrease in gross domestic product havecontributed to the growth.

India currently ranks sixth in the world in pro-duction of cars and second in the production oftwo wheelers. Over the last two decades, vehiclepopulations have increased fivefold and productiontenfold. This growth will be sustained in the foreseeablefuture. Unlike the United States and Europe, wheregradual growth occurred over a large number ofyears, production of automobiles took off in theearly 1990s in India at an exponential rate. India fol-lows the European model in regulations governing

New Kid on the Block inAutomotive Recycling IndiaBy Captain N.S. Mohan Ram, Indian Navy (retd), Chairman of Recycling Group • Society of Indian Automotive Manufacturers


design, construction, safety, and emissions. However,India currently has no norms covering recycling ofautomobiles. In the U.S. and Europe, recycling infrastructuredeveloped in tandem along with production of vehi-cles. Presently, volumes of end-of-life vehicles are lowin India. Low-tech units in the informal sector dealwith the disposal of old vehicles. The numbers areexpected to increase dramatically in the near future,way beyond the capacity and capability of these units.India needs to set up a modern recycling infrastruc-

ture drawing from the experience of advanced coun-tries, to avoid a major pileup of derelict automobiles.

Informal Sector Automotive recycling is currently carried out bysmall units in the informal sector in India, usingprimitive methods, polluting the air and groundwater, with poor yields. The units initially showed upin the outskirts of cities. Rapid urban growth hasbrought them into the heart of the cities in crowdedresidential areas. Mayapuri in Delhi, a thickly-popu-lated residential area, houses Asia’s largest automobilerecycling complex employing over thirty thousandpeople. Similarly recycling takes place in Pudupet, inthe heart of Chennai, Shivaji Market in Bangaloreand crowded areas in Mumbai, Kolkata, and else-where. In all, well over 100,000 families are employedin dismantling old cars and motorcycles, and recover-ing parts for sale. These units are currently rendering a usefulservice. However, the methods they use are primitiveand result in drainage of oils and fluids to theground. Copper is recovered by burning of insulationreleasing dioxins into the atmosphere. The risk ofheavy metal contamination is totally ignored. Theunhygienic methods used endanger the health ofthe workers. Some units also make use of child laborfor some tasks. With the surge in automobile production in themid-1990s, sudden increases are expected in the num-ber of end-of-life vehicles. These units have neither thecapacity nor the capability to deal with the surge. Theyare also not equipped to handle systems like airbags,seat restraints, and other incendiary systems. There is an urgent need to relocate these units toless crowded areas, retrain the personnel and orientthem towards using modern methods, proper equip-ment, as well as to compliance with standards ofsafety and hygiene. This is not just a technical issue,but a problem with socio-economic dimensions, as itinvolves relocating and retraining a large number ofpeople with marginal incomes.

Initiatives Under WayAwareness of ecological issues and the degradationof the environment came to India relatively late. Addto this the imperative need for rapid economicdevelopment and providing a better life to largenumbers below poverty line, and the issue poses adelicate balance between development and ecologi-cal concerns. The systems for dealing with insurance and recov-ery of vehicles damaged in accidents in India are


cumbersome and inefficient. There is great scopefor modernizing the systems, in line with advancedcountries. The automobile industry association, the Societyof Indian Automotive Manufacturers (SIAM), hastaken a proactive approach and focused its attentionto the issue. It has established a special group to dealwith recycling of end-of-life vehicles. The group hasparticipated in international seminars and visitedfacilities worldwide to get a full understanding of theproblems and challenges. Teams and officers havevisited facilities in the U.S., Canada, England, Ger-man, Hungary, China, and Japan and attended con-ferences in Budapest, Hong Kong, and Liverpool. SIAM has also organized a number of internationalseminars on aspects of recycling, such as regulationsand infrastructure. It has collected the opinions andgathered the experience of experts all over theworld to arrive at solutions tailor-made for India. It isalso working with government to develop regulationsfor recycling ELVs in India.

Recycling Demonstration CenterThe importance of automotive recycling has beenrealized and a paper on the subject is one of the doc-

uments referred to in“Prime Minister’s ActionPlan on Global Warming,”an important policy docu-ment of Government ofIndia. Recycling in India hasto take into accountunique local factors –the availability of alarge pool of relativelycheap labor and theneed to deal with alarge population oftwo-wheelers, whichamount to over 75%of vehicles by number andabout a third by weight. As too many players wereinvolved and no one was coming forward in settingup the industry, it was realized that the governmentwas in the best position to set up a demonstrationcenter. The center has been set up near Chennai by theMinistry of Heavy Industry, with active support of theautomobile industry, which donated know-how, lay-

The recyclingdemo center isnear Chennai,and has activesupport of the

automobile industry.


outs, and an initial supply of 25 cars and 60 two-wheel-ers free of cost. The center aims to develop methodssuited to India, using maximum manual labor, developsystems for two wheelers, and help train and upgradeunits in the informal sector. There are plans to startsimilar centers in other parts of the country.

India offers a great opportunity for setting up amodern and efficient recycling system, drawing fromthe experience of other countries. It will be a win-winfor society, creating employment, conserving energy,saving raw material resources and improving theenvironment, by reducing global warming. �

The main issues affecting professionalvehicle recyclers in the UK haveremained much the same for many

years, but seem to have intensified in recentyears. They relate primarily to:

1. Leakage in the flow of vehicles from last ownersto vehicle recyclers (ineffective regulation, the respon-sibility of the UK vehicle licensing authority, DVLA); 2. Ineffective regulation of vehicle & metal recyclers(the responsibility of the Environment Agency); and3. Sale of used parts. In view of points 1 & 2, thereis lack of confidence in the source of parts (stolen/ille-gally dismantled vehicles). There is no common qual-ity assurance/standards program, so there is no con-sistency in the quality (or warranty) of used parts sup-plied to consumers. The lack of a widespread used-parts IT database system means there is no mecha-nism by which the consumer can access real-timestock via a simple entry portal. Finally, there is a lackof pro-activity in the industry about tackling both thepractical & image issues. These issues have continued to be very importantas a result of the continued high value of scrap metal,and the rise in used parts sales since the economiccrisis of 2007-08 (which has focused the consumersmind on cost saving), and the large-scale acceptanceof shopping online.It’s always been very difficult to assess the state ofthe vehicle recycling industry in the UK becausethere has never been an accurate vehicle tracking sys-tem – many vehicles simply go missing and the num-ber that finally reach end-of-life has always been aguessing game. Also, there hasn’t been any coordi-nated regulation of the vehicle recycling and scrapmetal industry, so it’s not clear how many playersthere are (both legal & illegal) and how manyvehicles they handle. This has resulted in very widevariations in operating standards and enforcementactivities, both locally & nationally.It is clear that a huge number of vehicles aretreated illegally, by both legal & illegal operators. It iscurrently suspected that up to 40% of UK ELVs are

treated illegally. The large shredder operators arealmost certainly one of the major problems. Theydon’t routinely depollute vehicles they receive directly;they hide vehicle purchases under assumed metalgrades; they don’t record IDs of vehicle handled; and,they accept vehicles from third parties without exer-cising their “duty of care” (particularly with regard topurchases from itinerant operators, much the sameissue as metal thefts). Despite representations to authorities, pointing outthe potential regulatory advantages of concentratingtheir efforts on just 40 or so sites, to date they havefailed to grasp this nettle. There has been a clear dis-engagement by regulators with the industry over theyears, which has resulted in the bureaucratic beliefthat it can be regulated from the office. Clearly thisdoesn’t work in reality. The industry needs to becomemuch more effective in lobbying, and in being gen-erally pro-active, but it is difficult to do this when itstrade association – the route by which this could mosteasily be achieved – represents perhaps only 5% ofoperators, and is seen to offer little to non-members(who never-the-less benefit from its activities) andconsequently is limited financially in what it can do.Fifteen years ago, it was estimated that there werein excess of 3,500 vehicle dismantlers, on the basis ofthe numbers advertising in the local press. Currentlythere are about 2,000 officially-licensed vehicle dis-mantlers, plus those operating under small-scalelicense exemptions, plus those operating illegally.Judging by the number of parts sellers on e-Bay, thenumber of illegal operators (including small garagesthat are not licensed to dismantle) and private indi-viduals, and the number of operators advertising onthe Internet for scrap cars, there is evidence that thissector has experienced an expansion in the last 10years.Legal compliance for the professional auto recycleris a major issue in the UK due to the high cost to meetthe large number of regulations, and the fact that somany illegal operators are avoiding these costs whilereaping the benefit of a marketplace expanded dra-

Automotive Recycling UKBy Charles Ambrose, Chairman 2011-2013, Motor Vehicle Dismantlers’ Association (MVDA) • E-mail: [email protected]


matically by the rise of the Internet. Sadly, from anauto recyclers viewpoint, the European Union ELVDirective has spectacularly failed to deliver on muchof its potential.As far as used parts are concerned, the industry hasnot (as yet) really risen to the challenge of providingthe required level of service to customers, bothprivate and commercial. And from the consumer’sperspective, there is no clear distinction between anyof the operators. In the past, the most forward think-ing aspects of the industry have largely been focusedon the “easy money” to be made from repairable sal-vage or scrap metal. However, the tide seems to beturning, with much more attention being focused onparts sales, driven by a combination of the success ofe-Bay, the recent acquisition of EuroCarParts by LKQand Actual Systems (Pinnacle) by Solera Holdings,the intense competition for scrap metal, as well as thecontinued decline in the financial attractiveness ofinsurance company salvage contracts. However, the general standard of operation bymany vehicle recyclers remains traditional. The keyto delivering a long-term sustainable used parts

industry at an elevated level and encompassing cus-tomers that historically have not considered usedparts as part of their vehicle repair/maintenance pro-gram are laid out in point 3 at the beginning of thisarticle.The UK industry has relatively little contact withEuropean vehicle recyclers, although the MVDA re-mains a member of European Group of AutomotiveRecycling Associations (EGARA). However, theMVDA has a good working relationship with relevantExecutive Committee personnel, and is able to feedinformation directly. There is almost certainly a moreproductive relationship with ARA, but this is predom-inantly through a number of the UK industries’ morelongstanding and proactive operators. Indeed, thereis a school of thought that the MVDA needs to reflectmuch more the role and activities of the ARA. The MVDA could play a key role in the futuredirection of the industry. But probably the singlebiggest factor that will affect the UK auto recyclingindustry as it stands at present has not even been rec-ognized by the majority of existing players – the entryof LKQ into the UK used parts market. �


infrastructure, including stations for collecting retiredcars, disassembly facilities and shredders.The national Mexican government also released inMay 2012 their National End of Life Vehicle (ELV)Management Plan which maps out future designs forprocessing ELVs in Mexico. While not widely distrib-uted at this point, this important document will serveas the country’s blueprint for handling ELVs.In India, the country’s Ministry of Heavy Industry -under the guide of the National Automotive Testingand R & D Infrastructure Project (NATRIP) at theGlobal Automotive Research Centre (GARC) inChennai has set up a recycling and dismantlingdemonstration center. The center seeks to developrecycling processes which employ manual labor tothe greatest extent, and particularly procedures fordealing with India’s two-wheelers, which account forabout 80% by number and 40% by weight of thepopulation. According to the Society of Indian Auto-mobile Manufacturers (SIAM), India’s annual carsales climbed at a rate of 30% in 2010-2011 to a levelof 2.5 million vehicles.Amidst all of this growth and expansion, as theinternational association of the automotive recycling

industry, ARA is making contacts with internationalbusiness and government leaders, as well as providingbackground and educational material to countriesaround the world that are seeking to develop theirown automotive recycling infrastructure. ARA hasalso developed a Green Recycled Parts® marketingprogram that can assist automotive recyclers in thosecountries enhance the public’s perception of theautomotive recycling industry. The initiative providesARA member companies marketing material to helpbrand recycled automotive parts as an economical,safe, green alternative to new original equipmentmanufacturer (OEM) parts. In fact, ARA has trade-mark registration activity for Green Recycled Parts®

occurring in over 35 countries around the globe.These are great first steps, but ARA leadershipknows that much more needs to be done. As a result,the issue of ARA’s position in the global commerceof automotive recycling will be discussed at theARA’s upcoming strategic planning session earlynext year. Please let us know your thoughts on howyou think the industry can position itself worldwideso that our future discussions can be informed byyour experiences. �

Continued from page 24


• Unregulated Buyers at Auctions• Industry Access to Parts Data• Ability to Purchase End-of-Life Vehicles• Defining and Enhancing Market Niche• Exports of Parts/Vehicles to China• How to Make NMVTIS better• Education of Industry and RegulatoryStakeholders on Recycled Parts and CodesThe recommendations drafted on these matterswill be placed before the ARA Board of Directorsfor consideration and/or further discussion at theirupcoming strategic planning session early in 2013.Not surprisingly, one of the major priorities onwhich all meeting attendees agreed is that ARA

should continue to work to ensure an active andconsistent government relations presence in eachstate to protect and promote the interests of auto-motive recyclers. This goal was the initial reason forthen ARA Past President Sandy Blalock to hold thefirst Legislative Summit five years ago. Another recommendation evolved from thepanel discussion on industry access to data. Muchdialog ensued on this issue, with almost everyattendee commenting that the future of their busi-ness depends on having the vehicle data frommanufacturers and interchanges to meet bothmarket and safety needs. After a very informativeseries of exchanges between recyclers who provided

Attendees of the Legislative Summit 2012

develop recommendations for further discussion by the ARA Board.

By Betsy Beckwith

Summit5

Over 30 automotive recyclers, state affiliate executive direc-tors, ARA leadership, and ARA policy staff met in Nash-ville on July 16-17 for the 5th Annual Legislative Summitto discuss and identify legislative challenges and opportu-nities confronting the industry. Attendees helped framethe dialog and very actively debated how best to interactwith federal and state legislators, policymakers, and stake-holders to ensure a continued and vibrant marketplacefor professional automotive recyclers. Participants cameto a consensus on over 21 recommendations for furtherdiscussion on these general topics:

Legislative

MATTERS


on-the-ground examples of why data is crucial, itwas agreed that ARA should focus more on howVIN-related information could be made morereadily available and useful for automotive recyclers.Special consideration needs to be given to repro-gramming demands, data requirements on new,more advanced electronic components, and safetyconcerns of the dismantler (i.e., knowledge ondetails about extracted parts, such as how manyand the location of airbags). This very spirited and interactive discussion result-ed in another recommendation – that ARA shouldcapitalize on knowledge that automotive recyclershave about which parts fit which car models. Another panel considered the growing issuesand obstacles confronting recyclers who purchaseend-of-life vehicles. It was agreed that ARA shouldsupport efforts to create mechanisms to purchaseELVs, including participating in stakeholder coali-tions and providing model legislative language foruse by states. Also, in an effort to define and enhance the auto-

motive recycler’s market niche, the meeting partic-ipants noted that ARA should consider workingwith repair shops and insurers to ensure that theselection of parts for repairs is based on qualityrather than potential profit margins. It was furtheragreed that ARA should identify specific local play-ers (insurance companies, repair shops, etc.) andeducate them about recycled parts and codes. Attendees commented when surveyed that theyliked the summit format and some suggested thatthey would like to see break out groups added. As for increasing summit attendance, many agreedto bring another auto recycler next year to the sum-mit. But, it was noted that the focus should be onincreasing in meeting attendees who are knowl-edgeable about the legislative issues in their states. ARA encourages all ARA member automotiverecyclers to attend the meeting next year, which,for the first time, will be combined with ARA’sAnnual Hill Day Meeting scheduled for mid-March. �Betsy Beckwith is ARA’s Director, Policy & External Affairs.

Legislative

MATTERS

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In 2009, Chris was nominated to serve asSecretary on the Executive Committee. “I have really enjoyed working with all the ARAcommittees,” said Chris. “There was a by-lawschange introduced last year that switched theduties of First Vice President and Second VicePresident. I was the member of the ExecutiveCommittee that it affected. It allowed me to havethe opportunity to serve as the ExecutiveCommittee liaison to the ARA committees for twoyears. I feel the committees of the ARA are thelifeblood of the Association and it has been atremendous learning experience for me. I feelprivileged to have had that opportunity.”

As he gets ready to step into his new role, Chrissays he is ready to get busy continuing the greatwork that has already been initiated by previouspresidents.“I’m excited!” he said. “I’m looking forward tothe opportunity to help improve and advanceARA by implementing what I’ve learned about theindustry and our Association over the last severalyears.”Some of Chris’s goals as ARA President includeadvancing and improving the member servicesthat ARA has to offer. This covers a wide range ofactivities that ARA is engaged in, includingGovernment Affairs at both the state and federal

Change of GUARD

Growing up in the business that his dad, Ken Wright, started in 1969, ChrisWright of Capital Auto Parts, Inc., located in Thomasville, Georgia, “officially”joined the business after college in 1991 and has been full steam ahead eversince. In 1999, he served on the board of Georgia Automotive RecyclersAssociation (GARA) and became its president from 2003 to 2007. He alsoserved as a Regional Director for ARA in 2003-2004, winning the ARA RegionalDirector Star Award in 2004. At ARA’s 69th Annual Convention, to be held inOrlando, Florida in October, Chris will become the 2012-2013 ARA Presidentwhen current ARA President Randy Reitman relinquishes the gavel.

Advancing ARA’s services and expanding salvage options will take

&VisionExperience

By Michelle Keadle-Taylor • Photography by Jonathan Allain


level, accreditation programs,safety, salvage acquisition, insur-ance, and much more. “In order to achieve thesegoals we need to improve thecommunication and supportfrom the Executive Committee,Regional Directors, and staff tohelp the committees of ARA toimprove and complete the proj-ects and programs they arecurrently working on. If wecontinue to improve our sup-port and resources to helpthem achieve their goals, it will benefit theAssociation and its members.” Chris plans to continue work on several keyindustry issues throughout his presidency. Twomajor areas he plans to focus on are salvage acqui-sition and legislation.“As president I will continue to task the ExecutiveCommittee to study and move forward on the ele-ments of salvage acquisition that are hurdles inour industry so that we can help ARA to createsome positive changes on this important issue,”said Chris. “I also will focus on legislation. Therecontinues to be a need for our involvement in leg-islative issues and I will continue to provide theresources and support needed by the GovernmentAffairs Committee.”On a reflective note, Chris expresses gratitudeand respect to his peers and fellow members.“I would like to thank you for the support you’vegiven me over the last three years,” he said. “I lookforward to serving you as the President of ARA. Ihave an open door policy, so please do not hesitateto contact me if you have anything you would liketo discuss. My goal is to advance and improve themember services; however, to gain the most fromyour Association you need to be involved. I encour-age you to take advantage of the opportunitiesARA offers whether it’s participating on a commit-tee or even just attending a convention.”

Like Father, Like SonChris Wright’s upcoming role as ARA Presidentwill mark only the fourth time in the history of theorganization that two generations have served asARA President. Chris and his father, Ken Wright,who served as ARA President from 1988 to 1989,will become the third father and son duo ofPresidents while the late Norm Dulaney and his

daughter Linda Pittman holdthe only father/daughter title.The other father/son duosinclude: Harold and KenSchram and Jack and PhilSheppard. The unique aspect of thisduo is that the ARA Presidencyisn’t the only role that Kenand Chris have shared. Kenalso served as President of theGeorgia Automotive RecyclersAssociation (GARA) from1979 to 1981 and as a Regional

Director for ARA from 1983 to 1984. He says he ispleased to see his son follow the same path to pres-idency.“I’m so pleased that Chris wants to further hisinvolvement in the Association,” said Ken. “Ijoined NATWA in the early seventies, which even-tually became ADRA and is now, of course, knownas ARA. I went to my first convention in 1975 inPalm Springs, California. Everything I’ve accom-plished in my business I owe to what I’ve learnedfrom my involvement in the associations, whetherit’s been through the ARA conventions, educa-tional seminars, or just chatting with other recy-clers. It’s given me an education that can’t bebought, and the people are great. I can count onmembers from any state. So, I’m excited that myson is about to become an ARA President.”Some of the lessons that Chris has learned fromwatching his father in these roles are ones he feelswill help him in his upcoming position.“Dad has always emphasized the importance ofthe responsibilities that the leadership of anAssociation has to its members and that the deci-sions made should reflect their best interest,” saidChris. “One of the best lessons I’ve learned hasbeen unspoken. I watch how well received andrespected he is within the industry and that moti-vates me to achieve that for myself through dedi-cated service to the Association and respect for itsmembers.”The major achievements that were realized dur-ing Ken Wright’s term as ARA President in 1988-89 include establishing ARA as their own entityapart from the International Management Group,starting rebate checks to ARA members who tookpart in the CNA Insurance program, increasingARA membership to about 1,500 members andchanging the Past Presidents and Immediate Past

Change of GUARD

“I have an open door policy. My goal is to

advance and improvemember services;however, to gain the most from yourAssociation you needto be involved.”


Chris Wright, of Capital Auto Parts, Inc.,Thomasville, Georgia, will serve as theARA President for 2012-2013.


President’s trip from a pleasure trip to a studytrip. The first such trip was to Great Britain wherethe Past and Immediate Past Presidents visitedauto recycling facilities and established long-stand-ing relationships with recyclers in the UK. Ken feels that the role of president in today’smarketplace is much harder than when he wasARA President. “When I was President of ARA, it was mucheasier to make money in this business,” said Ken.“It’s much harder to be president today because ofthe salvage acquisition issue. When I was presidentI was buying my salvage from a contract with aninsurance company and many other recyclerswere buying from salvage pools. It was much easierto buy cars and make money then. The Internetreally changed things and now it seems anyonecan buy salvage.”

Chris agrees that technology is the biggest dif-ference from his time as president. “I like to joke with Dad that when he was presi-dent they were using the telegraph to send mes-sages,” he said. “Besides the telephone and anewly purchased ‘thermal paper’ fax machine,that is all he had to use to communicate. No inter-net, no e-mail, no webinars, no cell phones – howdid they survive?”“Yet, looking back over some of the material thatDad has saved, a lot of the issues were the same.However, we have added a lot more programssince then and more committees and staff to helpaccommodate and achieve the ever-growing needsof our association,” said Chris. Although many years separate their two terms aspresident and the issues and technology havechanged, one thing remains the same. They bothagree that being an ARA President is an honorand one they wouldn’t want to miss. �

Michelle Keadle-Taylor is a freelance writer based in Northern Virginia, anda regular contributor to Automotive Recycling magazine.

Change of GUARD

Chris Wright, left, and his father, Ken Wright, right, share manythings, including a love for the family business and a passion forserving as a leader in the automotive recycling industry, whichincludes serving in the role as ARA President.

Fire!


Auto Recycler PERSPECTIVE

A portion of the CertifiedAutomotive Recycler pro-gram outlines Safety Stand-

ards that should be used as Best ManagementPractices (BMP) in the operation. We have consis-tently strived to adhere to these standards as we havegrown our business in rural South Dakota from adairy farm harvesting crops and milk to a full timeAutomotive Recycling facility with 70-plus employees. Have we done things perfectly along the way? Ofcourse not, but we have learned from the school ofhard knocks, our peers, industry teachings, andnumerous publications.

Fire in the BayAt 4 p.m. almost exactly on July 25th, I had one ofour staff members briskly interrupt a meetingbetween our leadership team and visiting businesspartners from out of town with the words you neverwant to hear; “We got a fire! It’s bad!” I will never for-get the look on his face, and he was not even invol-ved, he was just asked to run and break the news. Of course, our number one concern was for thesafety of the lives of our team members. Also of greatconcern was the fact that the fire was in a dismantling

area. As we all know, dismantling efforts are the veryheartbeat of any recycling business. But, this is the event you think will never happen toyour company, it will be someone else, which is why Iam writing this. In our TD-08 Dismantling bay, (two of our 8 dis-mantling stations) two dismantlers work on a varietyof vehicles. On this day, on one hoist was a 1990Ranger being prepped for the Ewe Pullet self-serviceoperation and on the other hoist was a 2011 CrownVictoria squad car being dissected with many low-mileage high-quality parts being removed. The dis-mantler of the squad car had just received assistancefrom another co-worker to negotiate the fuel tankaway from the filler neck and lowered it onto therubber-lined transport cart that is used to bring thetanks to the pneumatic transfer station. This is the safe process that takes the fuel out of thebuilding to outside storage that is in secondary con-tainment under roof. In the process of lowering thealmost full tank to the cart and working to suck thetank dry, some gas was spilled. While a small gas spillis not uncommon in the process of dismantling, thisspill was a bit more than that occasional splash thatwill come out when removing a line or pump. As the

One auto recycler shareshow CAR certificationproves to be benefical in a crisis.By Shannon Nordstrom

Nordstrom’s Automotive of Garretson, South Dakota, is very proud of thefact that they have achieved and maintained the Automotive RecyclersAssociations (ARA’s) Certified Automotive Recycler (CAR) accreditationsince 1999. We are also excited we took the next step in customer serviceby agreeing to the Code of Ethics and participating in the CSI portion ofGold Seal Program. Our involvement in these programs has been para-mount in the growth of our business and providing amazing businessopportunities doing business the Gold Seal way, and places our companyon a shorter list of facilities in the country that have taken these steps.

(The word you never want to hear)


dismantler was draining the tank, he decided to multi-task and work on removing the fuel pump from thetank. He was using an 18v brand name re-chargeable¼ inch impact tool, not unlike a tool you will find inthe hands of dismantlers across the country. As he triggered the device for what we believe wasthe 8th time, disaster struck. His arm could feel therush of the fire as it grew from the back of his tooland felt as if it was crawling up his arm. In reactionhe threw his arm back and dropped the tool. As hedid this, fire instantaneously traveled from his tool tothe previously mentioned spill of gas on the floorand quickly engulfed the tank in a huge ball of firein the corner of the shop. He was fortunate to beable to get away from the fire with only some singedhair on his arm. The other dismantler also reacted quickly to getaway from the fire. Thankfully, no one was injured.

Moral of the StoryHere is where my story speaks to you about how Iam proud of our staff and the importance of beinga Certified Automotive Recycler. I want to encourageeveryone to pay attention to the things I am about totell you. As we quickly departed the meeting with ourAssistant Manager, I grabbed the extinguisher fromthe wall of my office and we stopped by the mainte-nance shed to grab extras from the reserve units just

in case. As we approachedon foot, we could see thesmoke and flames alreadymaking their way out ofthe dismantling bay. Wefound team membersfrom different depart-ments rallying together inextremely brave fashion,relaying fire extinguishers, and taking turnsapproaching the fire area to knock down the fireand work the side wall of the adjoining buildings. Wehad a gathering point and we assured ourselves thatno one else was in the blazing area. Our staff expelled over 50 fire extinguishers in theeffort to contain the blaze. The staff member whohad the blaze start in his hand knew from employeeorientation that he was empowered to call 911, anddid so; help was on the way. We worked feverously tosave what we could. The fire department arrived in14 minutes from the time of the call and was able todrive through our property on clear and open pathways to find a very good spot to set up operations. With the help of five volunteer fire departmentsand 68 firefighters and an aerial ladder truck, theblaze was contained to the shop area. There was onlyminor damage to the connected warehouses thathouse countless dollars of ready-to-sell inventory.Firewalls designed into the buildings to seal the shop


from other buildings in case of a fire held up longenough for containment of the blaze. Our staff knewwhere to find and how to use the extinguishers whichwere all inspected, operational, and strategically locat-ed throughout our facility; over 100 of them!

A Lesson to LearnWhy would I write to share this story? I do itbecause I am proud of our organization.The CAR standards gave our facility the roadmapfor being prepared for the worst. Our good house-keeping allowed for 27 fire trucks and supportvehicles to easily get close to the shop area. We hadthe right type of fully functional fire extinguishersavailable. We had team members who had beentrained in monthly meetings to know how to properlyused the extinguishers, and understand things suchas meeting points and locations of safety equipment.Our safety committee had done their job. All in all, without the pride in our organization andproper equipment and training, staff members couldhave been injured, or worse yet killed; our entirecomplex of connected buildings would have easilybeen destroyed. Because of what we do on a regular

basis, we were prepared with the correct equipmentand what to do during a time of crisis. Other than the mistakes that caused the fire; goodhousekeeping minimized potential fuel sources thatwould have allowed the fire to quickly spread beyondthe initial area. Doors that connect the buildings wereclosed, not allowing for any more spreading than nec-essary. Our adherence to the ARA Torch Protocol thatdoes not allow for open flame or cutting wheel in ourdismantling shop had kept us fire free since we builtthis shop in 1999; but we learned we were not safeenough if proper procedures are not followed. Wewere not ready to have a building destroyed, but wewere ready to react quickly and efficiently.Thank you to our brave staff members, volunteerfire departments and to ARA for offering us the CARprogram and the associated knowledge base availablewith training seminars at conventions. ARA Universityis also a huge help in preparing for accidents. Are you prepared? Get a CAR application todayand lead your staff to make CAR standards the stan-dard for your business. �

Shannon Nordstrom, Owner of Nordstrom’s Automotive Inc., is Chairmanof ARA’s Certified Automotive Recycler Committee.

Auto Recycler PERSPECTIVE


A&A MidwestBooth # 6022580 N. Commerce StreetNorth Las Vegas, NV 89030-3876Phone: (702) 649-7776Toll Free: (800) 426-8771Fax: (702) 649-6777www.aamidwest.com

ADP Payroll ServicesBooth # 5308100 Cedar Ave. SouthBloomington, MN 55425Phone: (612) 481-0609Toll Free: (866) 506-9447Fax: (866) 504-5120www.adp.com

Advance Tire Inc.Booth # 3121000 Rike DriveMillstone, NJ 08535Phone: (800) 445-6647Toll Free: (800) 445-6647Fax: (609) 490-9776www.advancetires.com

Alan Ross MachineryBooth # 6333240 Commercial AvenueNorthbrook, IL 60062Phone: (847) 480-8900Toll Free: (888) 898-7677Fax: (847) 480-1830www.alanross.biz

Al-jon Mfg.Booth # 529 15075 Al-jon AvenueOttumwa, IA 52501Phone: (641) 682-4506Toll Free: (888) 255-6620Fax: (641) 682-6294www.aljon.com

ALLDATA®Booth # 3019650 W. Taron Drive, #100Elk Grove, CA 95757Phone: (847) 695-5238Toll Free: (800) 829-8727Fax: (800) 829-3329www.alldata.com

Alter Metal RecyclingBooth # 5212175 Shawano AvenueGreen Bay, WI 54303Phone: (920) 494-3451Fax: (920) 494-1548www.altermetalrecycling.com

APU SolutionsBooth # 31110881 Lowell Avenue, Suite 250Overland Park, KS 66210Phone: (913) 599-1600Toll Free: (866) 599-1600Fax: (913) 599-2084www.apusolutions.com

ARABooth # 4199113 Church StreetManassas, VA 20110Phone: (571) 208-0428Toll Free: (888) 3851005Fax: (571) 208-0430www.a-r-a.org

Auto Data Direct, Inc. Booth # 5041379 Cross Creek CircleTallahassee, FL 32301Phone: (850) 877-8804Toll Free: (866) 923-3123Fax: (850) 877-5910www.add123.com

Automotive RecyclingMagazineBooth # 4299113 Church StreetManassas, VA 20110Phone: (571) 208-0428Toll Free: (888) 385-1005Fax: (571) 208-0430www.a-r-a.org

BASF Corp, Catalyst DivisionBooth # 800 25 Middlesex/Essex TurnpikeIselin, NJ 08830Phone: (732) 205-5258Fax: (732) 205-7144www.catalysts.basf.com

BizUniteBooth # 532670 North Commercial StreetManchester, NH 03101Phone: (603) 628-2337Fax: (603) 628-2374www.bizunite.com

Blue Grace LogisticsBooth # 528PO Box 12638Tallahassee, FL 32317Phone: (850) 562-3554Fax: (850) 562-4040www.mybluegrace.com

Borroughs CorporationBooth # 4073002 N. Burdick StreetKalamazoo, MI 49004Phone: (269) 388-4059Toll Free: (800) 748-0227Fax: (269) 388-4161www.borroughs.com

Brock Supply CoBooth # 401 PO Box 1000Tempe, AZ 85280Phone: (480) 968-2222Toll Free: (800) 528-4400Fax: (800) 889-0431www.BrockSupply.com

Buddy Automotive Innovations,LLCBooth # 21316 Via Maria TheresaManitou Springs, CO 80829Phone: (866) 337-1177Fax: (888) 422-2714www.buddyai.com

Car-Part.com & Checkmate by Car-Part.comBooth # 6111980 Highland PikeFt. Wright, KY 41017Phone: (859) 344-1925Fax: (859) 344-1954www.car-part.com

CMC RecyclingBooth # 7113000 Gamson RoadApopka, FL 32703Phone: (407) 293-6584Fax: (407) 295-4908www.cmcorlando.com

Commercial Forms Recyclers DirectBooth # 618PO Box 1859Brighton, MI 48114Phone: (810) 494-0964Toll Free: (800) 233-0771Fax: (888) 441-6903www.commercialforms.com

2012 Trade Show Exhibitors

As of August 17, 2012


Company WrenchBooth # 2294805 Scooby LaneCarroll, OH 43112Phone: (740) 654-5304Toll Free: (866) 262-4181Fax: (740) 639-9099www.companywrench.com

Connection, TheBooth # 202 1019 Harvin Way, Suite 120Rockledge, FL 32955Phone: (800) 848-4850Fax: (800) 992-9389www.platinumparts.com

Crow EnvironmentalBooth # 508Unit 3, The QuadrangleIpswich, Suffolk, UK IP3 9QRPhone: 44(0) 1473 290267Fax: 44(0) 1473 290257www.crowenvironmental.co.uk

Duesmann & Hensel Recycling North America Inc.Booth # 1191003 Industrial DriveWest Berlin, NJ 08091Phone: (856) 753-7614Fax: (856) 753-7617www.duerec.com

Electric Guard Dog, TheBooth # 509PO Box 21832Columbia, SC 29221Toll Free: (800) 4326391Fax: (803) 786-6458www.electricguarddog.com

Eye Max SecurityBooth # 7015665 Atlanta Hwy, Suite 103-106Alpharetta, GA 30004Phone: (678) 523-5780Fax: (770) 752-8795eyemaxsecurity.net

E-Z CrusherBooth # 501890 Norway DriveAnnandale, MN 55302Phone: (320) 274-3594Toll Free: (800) 328-3613Fax: (320) 274-3859www.ezcrusher.com

Fast Parts by Car-Part.comBooth # 7131980 Highland PikeFt. Wright, KY 41017Phone: (859) 344-1925Fax: (859) 344-1954www.car-part.com

Federal Autocat RecyclingBooth # 325502 York StreetElizabeth, NJ 07201Phone: (973) 273-0866Toll Free: (800) 786-5051Fax: (908) 355-0096www.federalautocat.com

GJ Sullivan Co.Booth # 502625 The City Drive, #400Orange, CA 92868Phone: (714) 621-2330Toll Free: (800) 235-4585Fax: (714) 876-2280www.gjsullivan.com

Hollander, Inc.Booth # 319 14800 28th Avenue NorthPlymouth, MN 55311Phone: (763) 519-3203Toll Free: (800) 825-0644Fax: (763) 553-0270www.hollandersolutions.com

Holmatro, Inc.Booth # 607505 McCormick DriveGlen Burnie, MD 21061Phone: (410) 768-9662Toll Free: (800) 654-0203Fax: (410) 768-4878www.holmatro-usa.com

Hotlines, Inc.Booth # 519427 E. Kanesville Blvd., Suite 403Council Bluffs, IA 51503Phone: (816) 407-0101Toll Free: (866) 355-5350Fax: (816) 781-8297www.partshotlines.com

HUB Industrial SupplyBooth # 404PO Box 3609Lake City, FL 32056Phone: (800) 7439401Fax: (813) 333-2014www.hubindustrial.com

Industrial ForkliftsBooth # 2054105 Globeville Rd.Denver, CO 80216Phone: (303) 292-0639Toll Free: (888) 639-4354Fax: (303) 468-9901www.heliforkliftusa.com

Ing. Bonfiglioli SpaBooth # 625Via S. Andrea, 11Castellod'Argile, Bologna, Italy 40050www.ingbonfiglioli.it

Interstate Batteries Recycling, Inc. Booth # 42412770 Merit Drive, Suite 1000Dallas, TX 75251Phone: (972) 715-6694Fax: (972) 455-6091www.interstatebatteries.com/recycling

James Environmental Mgmt Inc.Booth # 313600 Round Rock West Dr., Suite 201Round Rock, TX 78681Phone: (512) 244-3631Fax: (512) 244-0853www.jamesenvironmental.com

JCB Sales Ltd.Booth # 225Oakamoor Rd.Cheadle, StaffordshireUnited Kingdom ST10 4QTPhone: 44(0) 1538 757568Fax: 44 (0) 1538 752642www.jcbteletruk.com

Knopf Automotive LLC Booth # 60193 Shrewsbury AvenueRed Bank, NJ 07701Phone: (732) 212-0444Fax: (732) 212-0443www.knopfautomotive.com

KSI Trading CorporationBooth # 605100-A Wade AvenueS. Plainfield, NJ 07080Phone: (908) 745-7154Toll Free: (800) 445-4540Fax: (908) 754-8220www.ksiautoparts.com

Lamb FuelsBooth # 413789 Anita StreetChula Vista, CA 91911Phone: (619) 421-0805Fax: (619) 421-0586www.lambfuels.com

Legend Smelting and RecyclingBooth # 6192520 Sweetwater Springs Blvd.Spring Valley, CA 91978Phone: (815) 641-7661Toll Free: (800) 697-5556Fax: (619) 670-7836www.legendsmeltingrecycling.com

Logan Oil Inc.Booth # 43251 University Avenue, Suite HLos Gatos, CA 95030Phone: (858) 550-9440Fax: (858) 923-2172www.loganoil.com

MAC/Granutech-Saturn Systems Booth # 411201 E. Shady Grove Rd.Grand Prairie, TX 75050Phone: (972) 790-7800 Toll Free: (877) 582-7800Fax: (972) 790-8733www.granutech.com


Magnatech Engineering Inc.Booth # 3031204 Tonganoxie Rd., PO Box 399Tonganoxie, KS 66086Phone: (913) 845-3553Fax: (913) 845-3563www.magnatech-engineering.com

MCI CoresBooth # 7256346 PlymouthSt. Louis, MO 63133Phone: (314) 725-2673Toll Free: (800) 878-7414Fax: (314) 725-0773mcicores.com

Mike French & Co., Inc.Booth # 3001619 Front StreetLynden, WA 98264Phone: (360) 354-8326Toll Free: (800) 238-3934Fax: (360) 354-3013www.mikefrench.com

Mi-T-M CorporationBooth # 2118650 Enterprise DrivePeosta, IA 52068Phone: (563) 556-7484Toll Free: (800) 553-9053Fax: (563) 556-1235www.mitm.com

Multimetco Inc.Booth # 7191610 Frank Akers RoadAnniston, AL 36207Phone: (800) 824-5092Toll Free: (800) 824-5092Fax: (256) 835-1778www.multimetco.com

NASCO-OPBooth # 4262031 Reiser Avenue SENew Philadelphia, OH 44663Phone: (330) 343-5565Toll Free: (800) 321-3396Fax: (330) 364-8094www.nascoop.com

Ntl. Vehicle Mercury SwitchRecovery Program (ELVS)Booth # 410PO Box 3282Farmington Hills, MI 48333Phone: (877) 225-3587www.elvsolutions.org

Northshore Manufacturing, Inc.Booth # 718530 Recycle Center DriveTwo Harbors, MN 55616Phone: (218) 834-5555Fax: (218) 834-5556www.builtritehandlers.com

Oldcastle PrecastBooth # 12113783 Linden DriveSpring Hill, FL 34609Phone: (352) 796-5944Fax: (352) 796-5933www.duratekprecast.com

OverBuilt, Inc.Booth # 219780 West Park Avenue NWHuron, SD 57350Phone: (605) 352-6469Toll Free: (800) 548-6469Fax: (605) 352-0881www.overbuilt.com

Perfect Fit GroupBooth # 60616941 Keegan Avenue, 2nd floorCarson, CA 90745Phone: (888) 586-5883Fax: (615) 650-9823www.perfectfitgroup.com

Perimeter Security Systems Inc.Booth # 408PO Box 122Isle of Palms, SC 29451Phone: (843) 886-9511Toll Free: (800) 401-5560Fax: (843) 886-9501


Phoenix Automotive Cores Booth # 400422 S. 33rd AvenuePhoenix, AZ 85009Phone: (602) 415-9166Fax: (602) 237-6728www.phxautocores.com

Rebuilders Automotive SupplyBooth # 1111650 Flat River RoadCoventry, RI 02816Phone: (401) 822-3030Toll Free: (877) 829-1553Fax: (401) 828-8488www.rascores.com

Recyclers POWERSOURCEBooth # 503PO Box 556Spirit Lake, IA 51347Phone: (712) 336-5614Toll Free: (800) 336-5614Fax: (712) 336-5617www.rpowersource.com

SAS ForksBooth # 505P.O. Box 260Luxemburg, WI 54217Phone: (920) 845-2307Fax: (920) 845-2309www.sasforks.com

SAV Transportation GroupBooth # 52311325 Xeon StreetCoon Rapids, MN 55448Phone: (763) 489-4208Toll Free: (866) 8683230Fax: (763) 278-3354www.savtrans.com

Scrap Magazine/ISRIBooth # 7041615 L Street NW, Suite 600Washington, DC 20036Phone: (440) 268-0501Fax: (440) 268-0502www.isri.org

SEDA EnvironmentalBooth # 220135 Walter WayFayetteville, GA 30214Phone: (770) 681-0474Fax: (800) 991-7332www.seda-usa.com

Sellick Equipment LimitedBooth # 525358 Erie Street N.Harrow, ON, CAN N0R 1G0Phone: (519) 738-2255Toll Free: (877) 735-5425Fax: (519) 738-3477www.sellickequipment.com

Sierra International Machinery, LLCBooth # 6041620 E. Brundage LaneBakersfield, CA 93307Phone: (661) 327-7073Toll Free: (800) 343-8503Fax: (661) 322-8759www.sierraintl.com

Supershear Inc.Booth # 5116910 E. Lobo AvenueMesa, AZ 85209Phone: (800) 999-8100Fax: (480) 304-4870www.supershears.com

Techemet LPBooth # 8126025 Genoa Red Bluff Rd.Pasadena, TX 77507Phone: (281) 991-8300Fax: (281) 998-9799www.techemet.com

Tire Service Equipment Mfg. Co. Inc.Booth # 4053451 S. 40th StreetPhoenix, AZ 85040Phone: (602) 437-5020Toll Free: (800) 223-4540Fax: (602) 437-5025www.tsissg.com


Total Resource AuctionsBooth # 5076205 Peachtree Dunwoody Rd.Atlanta, GA 30328Phone: (678) 645-2156Toll Free: (877) 673-4274Fax: (678) 645-3156www.traauctions.com

TSYS Merchant SolutionsBooth # 433689 Main StreetWalpole, MA 02081Phone: (508) 740-7734Toll Free: (888) 356-0001www.tsysmerchantsolutions.com

Ty Cushion TireBooth # 2012275 E. Francis StreetOntario, CA 91761Phone: (909) 230-5141Toll Free: (888) 870-9797Fax: (909) 230-5149www.tycushiontire.com

Umicore Autocatalyst Recycling, Umicore USABooth # 5063600 Glenwood Avenue, Suite 250Raleigh, NC 27612Phone: (919) 874-7153 Fax: (919) 874-7195www.autocatalyst-recycling.umicore.com

URGBooth # 304 6746 S. Revere Pkwy, Suite 120Centennial, CO 80112Phone: (303) 367-4391Toll Free: (888) 874-3463Fax: (303) 367-4409www.u-r-g.com

Vortex De-PollutionBooth # 5136140S. Gun Club Rd. #K6-150Aurora, CO 80016Phone: (303) 900-4040Fax: (303) 325-7011www.vortexdepollution.com

Wells FargoBooth # 431 4300 Market Pointe Drive, Suite 600Bloomington, MN 55435Phone: (952) 830-3039Toll Free: (800) 328-6311Fax: (952) 563-9639www.wellsfargo.com


“My wife and I traveled for five years and I reallymissed the business, so I decided to open a new facil-ity which envisions the future of auto recycling,” saidHarrow. “I spent many hours designing GreenStarand incorporating features that I felt would make itpossible to operate efficiently on two and a half acresin a city location with no more than 15 employees.”In order to achieve this, Harrow is drawing on his

previous experience at Michael’s Auto Parts which heowned and operated for 27 years.Harrow started out in truck salvage in New Jersey.

After he married his wife, Sharon, he worked for hisfather-in-law who owned Yale’s Inc., a large auto sal-vage yard in Connecticut. Before too long, Neil and

Sharon decided to branch out and start their own sal-vage yard. With a young family in tow, they decidedthat Orlando would be a nice place to relocate andbought Michael’s, an existing yard.“Michael’s had been there since the 1940’s but was

in disrepair when we purchased it in 1979. The pre-vious owner had health issues so Michael’s was fail-ing,” said Harrow. “There was one employee, a dogand no functioning equipment. Even though it wascostly to repair and improve Michael’s, it does notcompare to starting a business today with the most up-to-date equipment and technology.”Over the years, Harrow built a strong business with

a solid team of employees. When the business was

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GreenStar Auto Recyclers

By Michelle Keadle-Taylor

eil Harrow of GreenStar Auto Recyclers is not new to auto recycling. Infact, he is a 32-year veteran of the business. Like so many in this industry,auto recycling is in his blood and he can’t escape his intense desire to bea part of it. That’s why after five years of retirement, he has come backand opened a brand new auto recycling location. GreenStar Auto Recyclers, located in Orlando, Florida, opened less than

a year ago and boasts a unique state-of-the-art facility. N

sold to a big consolidator in2006, Michael’s employed 60people and processed over4,000 vehicles per year. As heembarks on this new venturewith GreenStar Auto Recyc-lers, he has made changesthat he feels will better suit hisnew business.Harrow’s vision for GreenStar includes several

important components that he considers the most rel-evant to efficiently running an auto salvage yard in alimited amount of space. Those components includemaintaining environmentally-sound practices, effi-cient layout and design for all aspects of the business,and excellent and proactive customer service.Maintaining high standards when it comes to the

environment has always been important to Harrowand when designing GreenStar Auto Recyclers thisdidn’t change. One of the first things he insisted onwas using concrete or any impervious surface in work-ing areas in order to keep the grounds uncontami-nated and environmentally sound. “The property was clean when we bought it so we

wanted to keep it clean,” said Harrow. “When theproject started we were going to use asphalt becauseit usually is cost effective. However, fuel prices drovethe price of concrete down so that it was 20% less

expensive to use concreteinstead of asphalt. We werepleased because in the end wehad a better product for theenvironment and also savedmoney.”GreenStar also uses clean-

ing materials that are not bio-hazardous and employ the most environment-ally-friendly method possible for oil and fluid dispos-al. They have partnered with Safety Clean and G&KServices to supply all the cleaning products they use,as well as to recycle on a bi-monthly basis all oily rags,anti-freeze, speedy dry, and any other contaminatedmaterials.GreenStar Auto Recycler’s layout and design creates

the most productive environment possible for the twoand a half acres. It starts with the flow of cars frompurchase to scrap; Green Star’s goal is to buy andprocess up to 125 cars per month with only 50 carsin the holding area at any given time.It continues with careful design and use of space in

the dismantling area. Green Star’s dismantling areais approximately 3,500 square feet and it houses allthe cleaning and tire breakdown equipment as wellas two dismantlers and one employee doing break-down. The design allows them to run the businessmore efficiently in a small area.


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GreenStar Auto Recycler’s layout and design creates

the most productive environment possible for the two and a half acres.

Neil Harrow, owner of GreenStar Auto Recyclers, in front of the state-of-the-art facility.


Only the best and most effi-cient lift equipment is used.They use Target lifts that arespecifically designed for autorecyclers. Self-contained, theyallow the recycler to pullmechanical parts from the top or the bottom.Harrow, who was accustomed to operating without

loading docks, decided to install two conventionaldock-height loading docks in the rear of the buildingthat can easily accommodate trucks and trailers. Healso installed two symmetrical, conventional street-height loading docks in the front of the building. Thishas greatly enhanced their operation overall, espe-cially in the area of receiving and delivering parts.Also to improve the process, they box multiple partsin the same location rather than hanging them. “Customer service is perhaps the most important

component to running a successful operation and ithappens to be one of my pet peeves,” said Harrow.“As Michael Le Beonf, author and businessman said,‘Every company’s greatest asset is its customersbecause without customers there is no company.’” “To me, every employee here at GreenStar Auto

Recyclers has to be a proactive team player who is pre-pared to give the best customer service possible. Weplace an emphasis on building personal relationshipswith our customers. The buck stops here, so if a cus-tomer has a challenge, I work with my team to get itresolved quickly,” Harrow says.

The GreenStar team wants toensure that each customerreceives their quality parts with-out damage occurring duringshipping. For this reason theyhave an in-house pallet build-

ing where they carefully crate parts before shipping.Harrow says the care that has been taken in build-

ing relationships and paying attention to customerservice has been worth it.“My biggest enjoyment in launching GreenStar

Auto Recyclers has been seeing customers I haven’tseen in six years,” said Harrow. “It’s great to see theirfriendly faces again and I’ve even had second gener-ation customers coming in, which proves that strivingto provide the best customer service makes a differ-ence to people.”As he reflects over his career in the auto recycling

industry, Harrow compares what he considers hisgreatest challenges starting out in the business to now.“My greatest challenge in starting out was that I hadno customers, no forklift, and no working toilet whenI bought Michael’s Auto Parts in 1979,” he said. “Oneof the biggest challenges in starting GreenStar wasfinding the right piece of land. “It was difficult to find a piece of property that was

zoned for industrial and would be perfect for ourbusiness. Today it is much more expensive to build afacility from ground up than it used to be. Not onlyare building materials more expensive, but you must

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GreenStar uses the most environmentally-friendly

method possible foroil and fluid disposal.


have things like an automat-ic fire suppression, automat-ic dry chemicals and liquidwater systems installed tomeet building requirementsfor new facilities, along withall current county and stateregulations.”Harrow, like most auto recyclers today, has found

one of the greatest challenges to be finding profitableauto salvage to offer quality parts to the customer.“Today it’s a bigger challenge to get parts than it is to

get customers,” he said. “It is difficult to buy good sal-vage through the Internet especially when rumor hasit that between 30-40% of the cars leave the country.”Although there have been challenges along the

way, Harrow considers his greatest success to be estab-lishing a thriving business.“Many refer to non-corporate recyclers as a ‘Mom

and Pop’ businesses,” he said. “However, I takeoffense, and I’m sure many of my fellow recyclers con-cur, to the categorization. Small recycling facilities arecapable of operating as, or more, efficiently and offer-ing the same or better customer service than their

larger counterparts.”“One of my greatest suc-

cesses is that we did just that– we started with nothingand built a successful busi-ness that became one of thelargest independents, per-fectly capable of providing as

good service as our larger counterparts.”“Throughout the years the salvage business has

evolved from ‘junkyard’ to ‘dismantler’ and now‘recycler.’ We’ve come a long way and are heading ina new direction for the recycling business. Hence,GreenStar’s slogan is the ‘The Art of Recycling.’”Always the visionary, Harrow, already has plans for

GreenStar Auto Recyclers to continue to stay part ofthe cutting edge of the industry and he’s fully pre-pared to take his team there.If a tour of GreenStar Auto Recyclers peaks your

interest, you are in luck. They are the host of the ARA69th Annual Convention & Exposition’s Yard Tour inOrlando in October. �Michelle Keadle-Taylor is a freelance writer in Northern Virginia, and a regularcontributor to Automotive Recycling magazine.

“Customer service is perhaps the most important component

to running a successful operationand it happens to be one of

my pet peeves,” said Harrow.


SARA: The Birth of an OrganizationBy Lucy Mazzucco

The Saskatchewan Auto RecyclersAssociation (SARA) has joined the

Automotive Recyclers of Canada (ARC).Prior to SARA, Saskatchewan Govern-ment Insurance (SGI) sponsored anindustry meeting each year. Like their sis-ter associations including those in BritishColumbia, Alberta, Ontario, Manitoba,and Atlantic Canada, Saskatchewan recy-clers now have the opportunity for aunited voice and has created a lot ofhype in the industry. “In 2011, the auto recy-

cling industry was lookingat a number of issues withtires, the environment,

and end-of-life vehicle programs,” saysCheryl Hoimyr, Manager, Salvage,Administration and Finance for SGISalvage. “At the annual industry meet-ing, the auto recyclers decided that itwould be beneficial to create an associa-tion in which they could both negotiateand defend themselves.” Until an official board could be elect-

ed, Hoimyr agreed to act as chairpersonfor the association. “The SARA meetingwas held in June of 2011 and the boardwas elected along with Jack Smith asChairperson,” says Hoimyr. On Septem-ber 26, 2011 SARA was officially estab-lished.Canada’s auto recyclers proved to be

very supportive in establishing SARA andwelcomed them with open arms. “TheAutomotive Recyclers of Canada and

their sister associations were really wel-coming and helpful in terms of sharingtheir experiences,” says Hoimyr. “Theyshared copies of their bylaws and theywere more than willing to discuss whythey made certain constitutional amend-ments. They allowed us to side-step a lotof issues we would not have consideredotherwise.” Since Saskatchewan had never had an

association before, SGI Salvage resignedtheir membership with ARC so thatthere would be an opening for SARA.SGI then became an active and sup-

portive member of SARA.“This has been a very positivething for the Saskatchewanauto recycling industry,” saysHoimyr.

Jack Smith of TopLine Salvage andChairperson for SARA says, “We’re work-ing toward an increase in membershipsall the time. This has been the first yearso it took quite a while to get everythingorganized. It’s been a challenge buteveryone has been really cooperative,”says. “It has been a total learning expe-rience.”

Alan Fontaine, owner of Vic’s Auto-motive in Swift Current, and Vice-Chair-person for SARA, spoke about the pro-gress of the association. “This year hasbeen a learning process. We’ve startedorganizing and we’ve been getting all ofthe members.” Fontaine also spoke about the plans

for SARA’s future. “We want to continuegetting everyone accredited. We alsowant to improve communications withSGI and continue growing with a biggermembership.”Bruce Ehaman from Red Wing Auto

Recyclers is also hoping for a largermembership in the future. “I’m hopingto get as many members as we can. Thisyear was all about getting things goingand we’re actively trying to recruit more

members.”Steve Fletcher, Managing

Director of ARC says,“Helping to set up SARA hasbeen a great experience – wehave a larger membershipbase and a group of highlymotivated new members.Kudos to the leadership at

SGI Salvage for making this happen andfor the local Saskatchewan auto recy-clers to seize the opportunity.” �Reprinted from Canadian Auto Recyclersmagazine.

Note: ARC believes in the fantastic relation-ship between ARA and ARC so much, that theyare covering the dues for their seven associationsto all belong to ARA as Affiliate Chapters -Automotive Recyclers Association of AtlanticCanada (ARAAC), Alberta AutomotiveRecyclers and Dismantlers Association(AARDA), Automotive Recyclers of Manitoba(ARM), Association des Recycleurs de Piècesd'Autos et de Camions (ARPAC), BritishColumbia Automotive Recyclers (B-CAR),Ontario Automotive Recyclers Association(OARA), Saskatchewan Automotive RecyclersAssociation (SARA).

International Auto RecyclingReports from Around the World

Best Newcomer Used CarTrading Platform

By Andy Latham, Bluecycle, UK

Anew online trading platform to helpmotor traders source used stock has

been voted “Best Newcomer” to theretail motor industry by car dealers,thanks to the innovation of leadingonline auction specialist, Bluecycle.Having built up a market-leading rep-

utation for its online car salvage auctionsover the past twelve years, Bluecyclelaunched its “Retail Ready” online fore-court earlier in 2012, in a bid to help cardealers overcome the difficulties in find-ing used stock.In just a few months, the initiative has

earned Bluecycle the award for “BestNewcomer” as voted for by more than1,000 car retailers, who determined thewinners of the annual Car Dealer PowerAwards, organized by Car Dealer maga-zine.Bluecycle’s Retail Ready online fore-

court works in partnership with SolusAccident Repair Centres. Only selectedvehicles are eligible for sale, includingthose that have suffered minor damageor previously stolen cars that have sincebeen recovered without damage.Prior to auction, vehicles are fully

repaired and restored to the highestindustry standards by Solus, using its net-work of Kitemark certified body repaircentres. Cars hold a valid MOT certifi-cate, where applicable – which confirms,without dismantling the vehicle, that itmeets the minimum environmental androad safety standards required by law –and is HPI clear – which is a report onthe history of a car. In order to reducecosts and environmental impact wher-ever possible, the new initiative aims touse fully serviceable “green recycledparts” in the repair process. These aresourced from donor vehicles withoutcompromising the quality of the repair.

Buyers must be registered withBluecycle prior to gaining access to auc-tions.Explaining why Bluecycle was the win-

ner, James Baggott, Editorial Director,Car Dealer Magazine, said:“The Car Dealer Power Awards began

three years ago and are the only awardsvoted for by dealers. This year wereceived a record number of entries andfor the “Newcomer of the Year” catego-ry, we asked readers to name the com-pany that has achieved something trulyoutstanding. Dealers voted for Blue-cycle’s Retail Ready initiative because of

its novel service, professional attitude andbecause it offers something totally dif-ferent.”Commenting on winning, Guy Spence,

Managing Director, Bluecycle, said:“Bluecycle’s Retail Ready forecourt

provides a unique alternative source ofstock in response to the motor industry’slack of supply. We are delighted that it’sbeen accepted by dealers very early on asa mainstream platform. This Car DealerPower Award is a very welcome bonusfor the effort put in by the team to devel-op a solution.”The Retail Ready forecourt has been

running for a few months and has fea-tured an extremely wide variety of vehi-cles, from Peugeots, Renaults and Fords,through BMW and Audi, including anAudi RS6 and an Audi R8. They haveeven sold a 1965 Ford Mustang.Of course, the other areas of Blue-

cycle’s work will continue as normal,including light damaged ex-fleet vehi-cles, heavier damaged salvage, bikes andcommercial that can be seen at www.bluecycle.com and plant at www.bluecycleplant.com, and if you are registeredyou can bid on the auctions. Registrationis quick and easy through the web site.Anyone using the code ARA2012 will beable to register on Bluecycle andBluecycle Plant for free. �Andy Latham is Compliance Manager for Bluecycle, one ofthe UK’s leading online car salvage auction sites and onlineauction technology specialists. They have been trading forover 10 years and specialize in car salvage, end of fleet, mo-torcycle, plant, equipment and commercial salvage, sellinghundreds of vehicles each week to customers throughout theUK and Europe.


International Auto RecyclingReports from Around the World

Presenting the award is Mike Brewer, a UK TV pre-senter, to ARA Member Andy Latham, center, andStuart Atkinson, right, a Bluecycle colleague.


Capitol ConnectionFrom ARA’s Government Affairs

Congressional Highlights

High Profile Legislation forAutomotive Recyclers SeesSummertime Activity

In Massachusetts, a last-minute com-promise has secured passage of Rightto Repair legislation. After weeks ofnegotiation, on the last day of the formallegislative session, a compromise bill wasintroduced and passed by both theSenate and House of Representatives onJuly 31. The bill was then sent to theGovernor’s office for his signature. Early in July, the Massachusetts Right

to Repair Coalition submitted 16,000 sig-natures to secure a spot on the statewideballot for a referendum vote on electionday. Since the legislation has now passedand the referendum vote is no longernecessary, Right to Repair advocates willnow be focusing on outreach to educatethe public about the new law, which willrequire auto manufacturer to provide allrepair and diagnostic information to carowners or their choice of repairer. In California, the legislature will soon

reconvene and efforts to pass Assembly

Bill 2618 will ramp up. AB2618 is cur-rently slated for a third reading in theSenate Appropriations Committee. Thebill has already passed the GeneralAssembly and the Senate Committee onGovernance and Finance. AB2618 would protect the tax advan-

tage afforded to licensed dealers, dis-mantlers, automotive repair dealers, andscrap metal processors by requiring allother individuals to pay sales tax direct-ly to auto auctions on their vehicle pur-chases. The California automotiverecycler associations and ARA stronglysupport the legislation.

ARA Continues to Seek NMVTISLanguage in Appropriations Bill

The Federal Fiscal Year 2013 begins onOctober 1 and once again this year

several appropriations bills are left unfin-ished. One of these is the Commerce,Justice, Science (CJS) Appropriations bill(H.R. 5326) which funds the Depart-ment of Justice’s National Motor VehicleTitling Information System (NMVTIS).

ARA has continued to request legislativeor report language in the bill to imple-ment targeted funding mechanisms forenforcement. The House of Representa-tives approved its version of the bill with-out this language and ARA has learnedfrom members of Congress that a stop-gap bill – a Continuing Resolution (CR) –will most likely be packaged to fund thegovernment until at least mid-Decemberif not even later into 2013. This compre-hensive bill will be crafted of only bare-bones necessities and will not include anynew language. Given this situation, ARA staff recently

met with senior appropriations staff todiscuss other potential financing options.Negotiations are pending.

ARA Reviewing FTC Used Auto Parts GuidesARA recently submitted comments to

the U.S. Federal Trade Commission’s(FTC) on its “Guides for the Rebuilt,Reconditioned and Other Used Auto-mobile Parts Industry” (Used Auto PartsGuides). The FTC periodically reviews allof its rules and guides and is interestedin public comments on many issues, in-cluding the need for and benefits of theguides, suggestions for changes and howthese changes would affect small busi-nesses, and how the guides should incor-porate consumer perceptions of industryproducts. It was last revised in 2002.

ARA Reviews Highway Bill

The two-year highway bill, MovingAhead for Progress in the 21st

Century (H.R. 4348 and S. 1813) wasenacted in July. There are several provi-sions of the 600-page bill that may be ofinterest to automotive recyclers. In mostcases, details regarding the programs willnot be forthcoming until the rulemak-ing procedures commence. Dates for implementation of these pro-

visions differ, but can be anywhere from

ARA Grassroots Network Grows

Even during an election year – a time when Congress is typically slow to act on anylegislation unless it promises success at the polls – great opportunities exist for auto-

motive recyclers to meet with their elected officials and educate them about automo-tive recycling and issues important to the industry. Sharing information with your stateand national representatives by sending an e-mail, letter, making a phone call or meet-ing in person is an important way in which you can support ARA’s government affairswork. As you well know, concerns expressed by constituents help influence a legisla-tor’s position and it is important they have access to valid, reliable information aboutquality recycled auto parts – hearing from ARA members is the first step. New Director of State Government and Grassroots Affairs, Jessica Thomas, will be

working with members of ARA’s grassroots network to ensure that lawmakers are hear-ing from auto recyclers in their states on issues of importance to the industry, suchas salvage acquisition, right to repair, detitling, and labeling/use of recycled parts.ARA’s grassroots network now totals over 300 individual automotive recyclers from44 states – recyclers who have either submitted comments on regulations or signedup at ARA meetings to be in our grassroots database. Please contact Jessica Thomas at [email protected] for more information or to join

ARA’s grassroots network. There is no more powerful lobbying tool than an effectivegrassroots network.


18 months to 2 years after enactment.ARA staff will continue to monitor theregulatory progress. Provisions of interest include:• Odometer requirements and importation

prohibitions – The Secretary of Transpor-tation will promulgate regulations forthe electronic (versus current written)transmittal of odometer data within 18months of the highway bill’s enactment.The penalties and damages for odome-ter fraud were increased. This provisionalso extends the prohibition on import-ing noncompliant vehicles and equip-ment for defective vehicles.• Recall information –Not later than one

year after enactment, the Secretary shallexpand the existing recall database andmandate that recall information “... beavailable to the public on the internet;be searchable by vehicle make andmodel and vehicle identification num-ber; be in a format that preserves con-sumers privacy; and includes informa-tion about each recall that has not beencompleted for each vehicle.”

• Vehicle electronics and safety standards –The Secretary will review “vehicle elec-tronics, software, and emerging tech-nologies” and report on product avail-ability.• Intelligent transportation systems – Inno-

vative technologies and strategies (ITS)will be encouraged through the use ofdemonstration programs, grant fundingand incentives. An Advisory Committeewill be established and composed ofindustry stakeholders. �

ARA PAC Plans to Grow

The Merriam-Webster definition of aPolitical Action Committee is:A group formed (by an industry or

an issue-oriented organization) to raiseand contribute money to the cam-paigns of candidates likely to advancethe group’s interests.Contrary to how political action com-

mittees are occasionally portrayed inthe press, PAC’s are just one of manytools that associations, non-profits, char-itable groups, corporations and otherpolicy advocates use to, as the definitionabove states, “advance” positions.With the multitude of legislative and

regulatory challenges facing the auto-motive recycling industry, ARA isrestructuring and revitalizing its ownpolitical action committee. A new ARAPAC Board was established with per-manent and rotating leadership posi-tions. A long range plan is being formu-lated with the goal of growing this in-valuable tool that assists in representingthe interests of professional automotiverecyclers to policymakers. Recognitionprograms will applaud the personalcontributions of its membership. Lookfor opportunities to get to know moreabout ARA’s PAC at ARA’s upcomingannual convention in October.


Crossword PuzzleBy Murray Jackson

Across 1. Auto-recycler’s inventory (3,5)5. Automotive lingerie9. Popular ’48-’71 Morris Motors model10. Vital item in engine-lube system (3,4)11. Long and winding Beatles thoroughfare12. Ford counterpart to Chevy El Camino14. Info in used-car ad (6,5)18. Certain open-wheel racers (4,4)20. ’62 movie, Bond drove Sunbeam Alpine (2,2)22. ’09 Volkswagen SUV23. 8-track tape-player button, once24. White-tailed road hazard25. Body-shop document

Down 1. Chevy counterpart to Pontiac Firebird2. Airport traffic lanes3. ’09 Saturn sedan4. Suburban car shelters, sometimes (3,3,7)6. “Get your kicks on ____ 66”7. Tool for a gasoline thief8. Collectors’ vehicles, often (3,4)13. True DIY vehicles (3,4)15. Sports car with Porsche brand16. Limo-glass description17. Nickname for Chevrolet emblem (3,3)19. Hot-rod slang for ’32 Ford21. Chrysler’s potent power plant


September 5

Auto & Truck Recyclers of New Hampshire The Yard Restaurant1211 Mammoth Rd.

Manchester, NH 031096:30 PM

Meets on first Wednesday of each month

11-12CIECA 4th Annual

Implementation Conference Chicago/Northbrook Hilton 2855 N. Milwaukee Ave

Northbrook, Illinois 60062(847) 480-7500

Fax: (847) 480-0827www.cieca.comFred Iantorno(847) [email protected]

Room Block and Discounted Rate will be open until August 25

12-15State of California

Dismantlers Association Harvey's Resort & Casino

Lake Tahoe, NVwww.scada1.com

14-15Ontario Automotive Recyclers

Association (OARA)Mid Year Member Meeting

Steve Fletcher(519) 858-8761www.oara.com

21-22Central Midwest Auto Recyclers

Convention & Trade Show(CMARC)

Dallara Indycar FactoryHilton Garden Inn Indianapolis

DowntownIndiana & Illinois & Surrounding States

Michelle Lechner(877) 880-2874

28-30Arizona Automotive Recyclers

Association 14th AnnualMembership Meeting

Harrah’s Ak-Chin Casino & Resort15406 Maricopa Rd.Maricopa, AZ 85139

For Reservations :(800) 223-7277Group Code SO9ARA2

October 3




11-132012 Texas Auto Recyclers Expo

and Trade ShowDoubleTree by Hilton Hotel Austin

6505 IH-35 NorthAustin, Texas, 78752-4346

(512) 454-3737 Cheryll Lambright, Executive Director

(800) 710-8272

24-28ARA 69th Annual Convention & Expo Gaylord Palms Resort and Convention Center

6000 W. Osceola ParkwayKissimmee, FL 34746Phone: (407) 586-6338

Reservations: (407) 586-2000Attendees: Reference A-ARA12 when making hotel reservationsExhibitors: Reference A-ARAEX when making hotel reservations

www.araexpo.org

November 7




8-10 Automotive Recyclers

Association of New YorkAnnual Convention

Crowne PlazaAlbany

Nov. 29-Dec. 1 5th Asian Automotive Environmental Forum

Hotel Chancellor Australia Gold CoastDavid Nolan (03) [email protected]

Register atwww.autoenvironment.com.asia

December 5




2012 Industry CalendarTo include your event in ARA’s calendar of events, e-mail the complete listing to [email protected]. Visit www.a-r-a.org for the most up-to-date calendar.

Answers from Puzzle on page 64

Send your 2012 & 2013 events for the Industry Calendar to [email protected].

Ad Index1-800 Cash for Cars .................................................12AA Midwest ...............................................................53Actual Systems of America, Inc./Pinnacle..........52Alter Trading Corporation.......................................19ARA University..........................................................13Builtrite Handlers & Attachments .......................45Brock Supply Co. .....................................................35Buddy Automotive Innovations .............................51Car-Part.com..........................................................C-4Commercial Forms Recyclers Direct....................38Company Wrench ....................................................54Connection, The .........................................................5CRUSH/S3 Software Solutions, LLC.....................29Duesmann & Hensel

Recycling North America Inc. ..........................33Hesco Heavy Equipment Services Co. .................40Hilco Industrial.........................................................37Hollander, a Solera company ............................ C-3Knopf Automotive ......................................................6MarkingPenDepot.com...........................................40NASCO-OP ................................................................57OmniSource ..............................................................63Pemberton ................................................................48Phoenix Automotive Cores.....................................27RAS..............................................................................31Recore Trading ..........................................................11RecycleCat.com ........................................................61SAS Forks ...................................................................17Sierra International Machinery ..............................9Supershear................................................................59Umicore......................................................................21United Recyclers Group........................................C-2Vander Haag’s, Inc...................................................65Wells Fargo................................................................15

Get Ahead in 2012 Empowering Your Team

To advertise, call Caryn Smith at (239) 225-6137

Over the past ten to twenty years, theinternational impact on automotive

recycling has been significant. One canonly imagine the global changes that thenext decade or two will generate. Thisengine of change, however, has beenslowed by the tough economic conditionsthat continue to plague worldwide busi-nesses, including the automotive recy-cling industry. It is only because of the longstanding

entrepreneurship spirit of auto recyclersthat a majority of businesses are still eco-nomical solid, because as you know, it isdefinitely not business as usual. You areconsistently incorporating new ideas toincrease marketshare, cut overhead, andto successfully beat back the litany ofissues that challenge you on a daily basis. According to many automotive recy-

clers, one of the venues that providesthem with tools to succeed against suchchallenges is the Automotive RecyclersAssociation’s Annual Convention &Exposition. The numbers support thisclaim – event attendance has experiencedsignificant growth during the past fiveyears of our economic downturn. Andthis year we expect even greater numbersprimarily due to the in-depth and timelyprogram focused on both domestic andinternational issues that are crucial togrowing your business. On October 24-27, 2012, professional

automotive recyclers from around theworld will convene in Orlando, Florida tolearn about industry issues and discusspotential solutions. Whether it is newthoughts to address an operational diffi-culty or cooperative initiatives that needdeveloping, time spent with global indus-try colleagues is a must during these chal-lenging times. With over forty educationalsessions on the agenda this year, there isa strong likelihood that attendees will finda number of sessions each day that willassist them in tackling a number of theirmost problematic issues.

The Annual Convention & Exposition,now in its 69th year, serves as a corner-stone for ARA. While it can feel like anannual family reunion to some, it is a cru-cial gathering for the continued growthof the automotive recycling industry.Attendees gather because they know thatnew ideas are generated, existing projectsare evaluated, and mid-course changes ofdirection are made (if needed) to thepath that the industry is travelling. Furthermore, there is no other meeting

solely planned by automotive recyclers forautomotive recyclers. The convention’sstrong attendance numbers make keyplayers in the automotive industry increas-ingly aware that there is a niche that onlywe can fill at the industry-wide table. ARA leadership and staff rely on your

attendance and active participation atthese annual events, but realize thatmany great ideas and new directions areprompted by settings that facilitate col-leagues enjoying each other’s companyboth in the lecture hall and in culturalexperiences. ARA’s planning team worksto provide just the right mix of classroomand outside learning experiences. In the years to come, ARA has signed

contracts for some exceptional venues.The Gaylord Palms Resort and Conven-tion Center, our destination for 2012, is aluxurious hotel with over 1,400 rooms.Attendees will be amazed by the four-and-a-half acres of indoor gardens and world-class restaurants all underneath theclimate-controlled signature glass atriums. ARA will go west to Phoenix, Arizona

for November 2013’s Convention &Exposition – and planned to coincidewith the Nationwide and NASCAR racesat Phoenix International Speedway. Ifthat isn’t reason enough to attend, the7th International Roundtable will beheld on the Monday and Tuesday follow-ing Sunday’s race. The host hotel, thePhoenix Sheraton Downtown, is adjacentto the Phoenix Convention Center and

boasts 31-stories with 1,000 room andredefines Phoenix’s skyline, offering mag-nificent mountain and city views.Looking forward, ARA has secured

Nashville’s Gaylord Opryland Resort andConvention Center for 2014. On thebanks of the Cumberland River, this 2,800room landmark hotel is just minutes fromNashville International Airport and ashort drive or riverboat cruise from theheart of downtown Nashville.In 2015, ARA returns to the Westin

Charlotte that played host to 2011’s pop-ular ARA Convention & Expo.The eventwill be even better in 2015 as ARA lead-ership and staff incorporate suggestionsreceived from last year’s attendees.And the 2016 Convention & Exposition

hotel venue (contracted to date) will bethe Sheraton and Hyatt Inner Harborproperties in Baltimore, Maryland.Baltimore’s Inner Harbor is one ofAmerica’s oldest seaports. Since the1600’s, it has welcomed people, ships, andgoods from all over the world. Historicallya working-class port town, it has beendubbed a “city of neighborhoods,” with72 designated historic districts includingthree notable downtown areas whichinclude Fells Point, Little Italy and theMount Vernon areas. As your business changes to address the

challenges of the day, so will ARA and ourannual bedrock event. In the years tocome, ARA’s Annual Convention andExposition will only build on its past suc-cesses. As international commerce con-tinues to grow, ARA will provide insightand tools to help you prosper in this everchanging world. Yes, the world will devel-op dramatically in the coming years. Thekey to future success for automotive recy-clers will be to become wiser and evenmore entrepreneurial and to continue toembrace the changing landscape. And itis along side your colleagues at our annu-al industry gathering that you will be ableto gain this wisdom. �


Final ThoughtsBy Michael E. Wilson, ARA Chief Executive [email protected]

To Orlando, and Beyond

Automotive Recyclers Association9113 Church StreetManassas, VA 20110-5456 USA

Documents

Report On End-of-Life Vehicles Worldwidearav3.timberlakepublishing.com/files/Full Sept-Oct Issue 2012... · End-of-Life Vehicles Worldwide ... salvage options will take these qualities