Click to the full November/December issue in PDF format
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Click to the full November/December issue in PDF format
Automotive Recycling November-December 2013 ™ Official Publication of the Automotive Recyclers Association hired to excel Growing an effective team of employees starts with a thorough hiring process. Getting it right at the start eliminates many obstacles, and allows you to take your team from good to great. The ARADirect Salvage Solution Training for Great Customer Service RD Hopper: ARA’s New Secretary Automotive www.facebook.com/ AutomotiveRecycling Recycling ™ www.AutomotiveRecycling-Ezine.com November-December 2013 | Volume 33 Number 6 TUTORIAL IN TRAINING Co l u m n s President’s Comments | 4 • Ed MacDonald Editor’s Notes | 6 • Caryn Smith q Driven to Learn 28 The making of the first-ever automotive recycling college program. By Pat O’Connor International Auto Recycling | 53 • Andy Latham • Steve Fletcher Final Thoughts | 62 EXECUTIVE COMMITTEE • Michael Wilson q Powered by Sonny’s 43 De p a r t m e nt s Letter to the Editor | 7 ARA Action | 10 Insure This | 14 • Bill Velin Marketing 101 | 16 • Mike French On the Road | 18 • Sandy Blalock Incoming Secretary RD Hopper is ready to do his part. CUSTOMER SERVICE q From Good to Great Sales 30 Strengthening your parts sales requires a systematic approach to training your sales team. By Taia M. Cesana By Michelle Keadle-Taylor GRASSROOTS SUCCESS q Can Fairy Tales Come True? 45 A story about how state associations work for you.? By Cheryll Lambright Advice Counts | 20 • Jim Counts MEMBER HIGHLIGHT Safety Matters | 22 Lessons Learned | 24 On Top Down Under 46 q Aussie ARA member honored for excellence. • Ginny Whelan That’s My Opinion | 26 • Ron Sturgeon Tech Knowledge Certified News Capitol Connection Crossword Puzzle Industry Calendar Advertiser’s Index | | | | | | 27 55 58 60 61 61 Cover and inside photos by Joe Treleven/ TRELEVEN PHOTOGRAPHY Automotive Recyclers Association 9113 Church Street, Manassas, VA 20110-5456 USA (571) 208-0428 / (888) 385-1005 / www.a-r-a.org EMPLOYMENT PRACTICES q You’re Hired 34 Your hiring process can directly impact your firing process. By Michelle Keadle-Taylor SPOTLIGHT PROGRESS FOR MEMBERS Wilbert’s Premium Recycled Parts 48 q Direct Impact 40 q ARADirect provides automotive recyclers a fast lane in a crowded salvage marketplace. This family business is dedicated to growing with excellence, but their secret to success is all about building community. By Michelle Keadle-Taylor By Lynn Novelli AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA, (571) 2080428 / (888) 385-1005, Fax: (571) 208-0430, Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Additional member subscription are $15/year. Non-member subscriptions are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and nonprofits. Copyright © 2013 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are the responsibility of the authors alone and do not necessarily imply any opinion on the part of the officers, directors, staff, or the members of the Automotive Recyclers Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA. November-December 2013 | Automotive Recycling 3 President’s Comments By Ed MacDonald, ARA President ARA Officers PR e S I D e n T Ed MacDonald Maritime Auto Salvage, Ltd. Truro, NS Canada [email protected] FIRST VICe PReSIDenT Keys to the Kingdom I am deeply honored and humbled to accept the ARA Presidential gavel, and I pay tribute to all who have come before me to help pave the way for those who follow. It is forward that we must point our compass. Many a wonderful discovery has been realized by strong hands on the tiller following the compass point to success. With our salted and seasoned crew working in unison, all of these hands hold the keys to the kingdom – one we all have so proudly built and nurture every day, known as the automotive recycling profession. All of us must play our appropriate role to ensure continued success: the guiding hands with learned expertise, implementing hands with current state of the art knowledge, and creating hands with innovative purpose to seek new, and yet, uncharted, opportunities. Unlike many of you, fortune was not given to me to grow the business as a family member, but rather I fell in love with this industry while employed in the federal government in Ottawa, after casually asking my high school friend, Alvan Aumont, just what he did at Arnprior/Ottawa Auto Parts, in Arnprior, Ottawa. He proceeded to show me his operation, and to say I was overwhelmed and amazed is an understatement. The rest, as they say, is history. We eventually bought Maritime Auto Salvage Ltd. in Truro, NS and off we went to join this wonderful profession, after a career in government. I hope, during my tenure as ARA President, to establish in the individual ARA recycler a collective mindset of these two enduring principles: 1) strength through partnerships, and 2) growth through succession. Changes in the marketplace are deluging us on a daily basis and to ensure that ARA is a major player in this economically driven arena, I intend to continue what others before me have begun – the pursuit of long term relationships/partnerships with major stakeholders in our industry. And about the second enduring principle, growth through succession: We are principally made up of family-owned businesses. I know firsthand the pride of passing on a successful business to my son, who has now taken over the keys of Maritime. I enjoy providing him with experiential wisdom from past successes – or failures as the case may be – as he identifies new areas of growth. He and others like him are now the stewards and rightful owners of the keys to the kingdom, and it is through this succession of experience, wisdom, fresh new creative, and dynamic hands that the professional automotive recycling industry will trump all others. ARA members have spoken and we have developed a multi-year strategic plan which will be the guiding principles to chart our future course to success. Each of the five initiatives included in the plan are important in their own right. I look forward to leading the dialog on these pillars and other related ideas in support of our association’s growth in the future. We are growing when so many other associations are not! We must prove ourselves to members by defining the value of membership in ARA and grow these numbers so we are more globally encompassing and stronger. Protecting the keys to the kingdom, building strength and wealth for all ARA members, developing partnerships, and supporting growth through succession and education are the key concepts that I want to focus on during my presidential tenure. Our ability to succeed is in your hands and, in the spirit that defines this profession and each one of you, let us challenge each other to join hands – experienced, new and all those in between – and walk across new thresholds to our future success. I want to personally thank all the well-wishers for their support that has recently come my way, and especially thank the staff, ARA members, and exhibitors. No doubt there will be lots to do and lots to accomplish. Sincerely, Ed MacDonald ARA President 2013-2014 4 Automotive Recycling | November-December 2013 Ricky Young Young’s Auto Center & Salvage/Car Crushers Benson, NC [email protected] S e C O n D V I C e P R e S I D e n T/ T R e A S U R e R Mike Swift Trails End Auto and Truck Salvage Des Moines, IA [email protected] S e C R e TA R Y RD Hopper Sonny's Auto Salvage Jacksonville, AR [email protected] I m m e D I AT e PA S T P R e S I D e n T Chris Wright Capital Auto Parts Thomasville, GA [email protected] ARA executive Staff & Contractors ARA Headquarters • (571) 208-0428 CHIeF eXeCUTIVe OFFICeR & PUBLISHeR Michael E. Wilson [email protected] Ext. 14 DIReCTOR OF memBeR SeRVICeS Kelly Badillo [email protected] Ext. 26 DIReCTOR OF POLICY AnD eXTeRnAL A F FA I R S & e- C A R C e n T e R Betsy Beckwith [email protected] Ext. 17 D I R e C T O R O F S TAT e & G R A S S R O O T S A F FA I R S Jessica M. Thomas [email protected] Ext. 23 D I R e C T O R O F P O L I C Y & P O L I T I C A L A F FA I R S Delanne Bernier [email protected] Ext. 18 meeTInG & eXPOSITIOn PL AnneR Kimberly Glasscock (615) 476-4501 [email protected] A D m I n I S T R AT I V e A S S I S TA n T Maria Miller [email protected] Ext. 10 A C C O U n TA n T John Caponiti [email protected] Ext. 16 C A R P R O G R A m , C O n S U LTA n T Chrissi Moyer (540) 303-2282 [email protected] G O L D S e A L P R O G R A m , C O n S U LTA n T Ginny Whelan (239) 362-1283 [email protected] AUTOmOTIVe ReCYCLInG mAGAZIne & WWW.AUTOmOTIVeReCYCLInG-eZIne.COm Caryn Suko Smith (239) 225-6137 [email protected] For advertising, editorial, or production information, e-mail [email protected] or call (239) 225-6137. www.a-r-a.org Editor’s Notes By Caryn Smith [email protected] Making Great Debate t is unusual to receive a Letter to the Editor, but the September-October issue struck a cord with at least one particular reader. His letter along with the author’s response is printed on page 7-8. My guess is many of you, too, had thoughts about that issue. With the future of car manufacturing up in the air, and many more questions than answers on how new car design will impact the automotive recycling industry, I hope that you will lend your thoughts to the issue as opportunities arise. The more perspectives we have looking at all the issues, the more likely profitable answers will result for the industry. This issue’s articles address training, opportunity, and success. It comes to you following a very successful ARA Annual Convention & Exposition, which includ- I 6 Automotive Recycling | November-December 2013 ed plenty of sessions for training and education, as well as highlights of current and future opportunities for the industry. Sure, there are challenges, but as the ARA grows in strength in numbers, and state, provincial, and international organizations help auto recyclers move toward successful resolutions to their challenges, the industry will thrive. For an example of that, see article on page 45. It is more important than ever that professional auto recyclers focus on running their businesses like a well-oiled machine. Making sure your customer service is at its best is ever more important today. Read about the lessons auto recycler Taia Cesana educates her staff about sales on page 30. Then, there is the issue of hiring! Daunting, exhausting, and sometimes a shot in the dark, this process is critical to the success of your business. Employee issues can drain you and your staff, as well as take the focus off what you need to be doing – selling parts. Auto recycler Eric Schulz shares his master plan on hiring smart on page 34. He has developed a thorough process that has helped his many businesses thrive. His overall hiring and training process was inspired by Shawn Collins who told him, “I’d rather train my employees and have them leave, than not train them and have them stay.” Lastly, as you heard at the ARA Convention, ARADirect is up and running and is your solution to salvage. Are you signed up? Read about it on page 40. E-mail your thoughts to the Editor at [email protected]. ■ Letter to the Editor What Readers Are Saying Send your thoughts to [email protected] Something to Consider I would like to offer both a compliment and, then, a thought for consideration: First, let me say any professional auto recycler that does not receive and study this fine publication is going to let industry challenges hurt them more than they need to and will see the opportunities much too late to take advantage of them. The September-October edition is again a fine example of ARA’s dedication to educate those in the industry that want to meet industry challenges and take advantage of the opportunities that will and do exist. Second, in this day and age of OEM’s seeking to approve who shall and shall not repair the vehicles they produce, as well as how they should be repaired, this issue needs to be of utmost concern to ARA and our industry. Not only do the OEM’s want to control who repairs the vehicles and how they should be repaired, but also from what sources we obtain the parts to approve who repairs those vehicles. To that end, I feel ARA needs to be ever more vigilant in what is said in Automotive Recycling to this regard. For example, in the boxed article The Dilemma of High Strength Steel, I take exception to the suggestion given “... to never cut an UHSS panel out of a vehicle structure for use in the repair of another vehicle, never try to repair UHSS panels, and if you are replacing one of these panels purchase new from the manufacturer and follow manufacturer or I-CAR standards when fitting.” It is my opinion that this advice is way out of bounds. Should we not sell rocker and center posts? Should we not sell a door that has these products in them? Should we not sell various other sections that have UHSS components in them? I believe that is what the article implies. I also take exception to the fact that the article suggests that we cannot cut, at factory seams, a UHSS component and sell to a repairer for installation at factory seams just as they would install a new one. I believe if we remove UHSS components with the proper tools, at factory seams, it’s something we can safely do. No, we cannot cut it out with a torch just as we should not use the same cutting blade to remove steel and aluminum components. Let’s face it, if a shop can remove a damaged UHSS component and install a new one, so then can the professional recycler properly and safely remove a recyclable one and the shop can then install the same-as-new recycled UHSS component. Lastly, as referred to in the article, UHSS actually stands for Ultra High Strength Steel and HSS is High Strength Steel. I do not want to split hairs here but they are two very different steel products. Very Respectfully, Herb Lieberman ARA Past President A Response from the Author I share Herb’s concern about manufacturers dictating standards, however the advice I referred to originated from Thatcham, who are an independent Repair and Research Centre funded by UK Motor Insurers. The aim of any repair is to ensure that the repaired vehicle performs as its manufacturer intended in any subsequent incident. Thatcham uses brand Editor’s Note: The editor regrets the mix up on UHSS and HSS as an editorial oversight in editing. The writer shared his experience and thoughts with our readership on the future impact of the materials from which automobiles are made and these thoughts are not necessarily the specific thoughts of ARA or this publication. November-December 2013 | Automotive Recycling 7 Letter to the Editor continued new panels to repair their test vehicles and document repair methods; using their methods and standards does ensure “best practice” and in the UK would be sufficient to prevent any future lawsuits in the event of a serious injury or fatality in another incident. To date no tests have been completed on vehicles repaired in the manner that Herb suggests, and I, for one, would not want to guarantee occupant safety on a vehicle where a centre pillar or rocker panel has been removed from one vehicle and used in another, unless this method of repair has been documented and tested to prove safety. UHSS is still relatively new in vehicle manufacturing and the welding standards and practices that many of us have grown up with over the last 30-40 years in this industry do not apply to UHSS; heat is the real problem and too much heat removes the strength in the metal so welding activities need to be strictly controlled to ensure that the strength of the metal is not compromised – in my experience many auto recyclers and salvage yards do not have the expertise or the equipment to do this because they are not undertaking the intensive training and purchasing regime that are enforced on insurer- or manufacturer-approved repair centers. I think this is great, as debate in this way results in better understanding of the issues. Please feel free to contact me for further discussion. Kind Regards, Andy Latham [email protected] Twitter: @salvagewire Make Plans to Attend! 8 Automotive Recycling | November-December 2013 Informative Read Just finished reading Andy Latham’s article, “The Future of Cars,” and thought it was well researched, informative, and I enjoyed reading it. Ken Hendricks Industry Relations Advisor Burnaby, BC Canada ■ ARA Action Latest News and Reports from ARA ARA Representatives Attend Annual SCADA and CMARC Shows T he annual State of California Auto Dismantlers Association (SCADA) Convention and Trade Show was held September 19-21 in San Diego’s historic Gaslamp Quarter. Automotive recyclers from SCADA’s Affiliated Chapters (BAADA, CVARA, NCADA, SCCARA, SDCARA, SJVADA), enjoyed three days of committee meetings, valuable networking opportunities, informative educational sessions, and fun social activities. In attendance to represent ARA were CEO, Michael Wilson and Director of State Government and Grassroots Affairs Jessica Thomas. Highlights of the SCADA convention included an annual awards banquet with outgoing SCADA President Jeff Buchanan of BW Auto Dismantlers receiving the coveted Dismantler of the Year award. SCADA members also honored the memory of Nancy Hall, San Diego County Auto Dismantlers Association’s long-time Executive Director, noting her valued friendship and strong commitment to the association and its members. Nancy passed away earlier this year and her daughter Stacy was in attendance to receive an honorary membership and standing ovation in her honor. ARA CEO Michael Wilson spoke to members during the General Member- ship meeting, focusing on ways in which ARA and its affiliate chapters can work together to protect and promote the industry. Wilson touched on the importance of data quality and access to OE data for electronic commerce as well as the role that electronic parts and telematics will have in the future for the industry. Automotive recyclers from Illinois and Indiana converged on the grounds of Auto Parts City in Gurnee, Illinois on September 20-21 for the Central Midwest Auto Recyclers Convention and Trade Show. Incoming ARA President Ed MacDonald flew in from Canada for the event to share news from ARA and dialogue directly with the membership. Hosted by ARA member Auto Parts City and owners Jay and Larry Brosten, discussions focused on all things “green.” Auto Parts City is a proud Certified Automotive Recycler (CAR) Member and was the first “Certified” Green Business League automotive recycler in the entire country. Facilities participating in the Illinois Auto Recyclers Association’s Green Car and the Indiana Auto Recyclers Association’s Clear Yard programs were recognized throughout the weekend. Highlights included instructors from Waubonsee Community College who offered sessions on fork lift and air bag training. Waubonsee has several campuses in the Chicago suburbs and has part- ARA Welcomes New Affiliated Chapter in Alabama A RA is pleased to announce the addition of a new affiliated chapter member: the Alabama Automotive Recyclers Association (AARA). Twenty-four members of AARA, led by association President Chad Counselman of Counselman Automotive Recycling in Mobile, Alabama, held their inaugural meeting in late August. AARA also took advantage of ARA’s new affiliate chapter website design template to build a brand new website, available at www.alabamaara.com. With the addition of Alabama, ARA currently has affiliated chapters in 42 states and is actively working with local automotive recyclers to establish affiliated chapters in the remaining 8 states. ARA leadership and staff welcome AARA ands its members to the association. 10 Automotive Recycling | November-December 2013 nered with the ARA University on several initiatives this year, including an automotive recycling curriculum. Attendees also participated in a social media workshop, PartsTrader update, and a session on family businesses led by fellow recyclers Frank and Sherri Heckenast. Ed MacDonald provided attendees a summary of current ARA programs, such as the Green Recycled Parts, Certified Automotive Recycler and Gold Seal programs, ARA University and the association’s new online auction platform, ARADirect. The convention concluded with an entertaining poker tournament and casino night, as well as wine tasting and dinner. ARA Attends 2013 NASCAR Green Summit A RA participated in the 2013 NASCAR Green Summit in September, held in Chicago. The summit celebrated the numerous environmental improvements and technological advancements made by the NASCAR community. NASCAR has the largest recycling and environmental sustainability programs among all United States sports. In addition to keynote speakers, the Summit featured several discussion opportunities focused on the strategy of the NASCAR Green platform, consumer education, environmental sustainability programs, technological innovation, and opportunities for multi-industry collaboration. While in Chicago, ARA met with a number of NASCAR representatives regarding ARA’s Green Recycled Parts® marketing program. ARA Integrates with CIECA Standards to Streamline Parts and Salvage Procurement A RA’s integration of CIECA technology solutions in both recycled parts procurement and salvage acquisition was spotlighted at the 2013 CIECA ARA Action Continued Implementation Conference in September. Representatives from ARADirect, Ginny Whelan and Mark Buffa, were on hand to provide attendees with two business-focused and one technical educational session. ARA also presented on an eCommerce Codes Case Study. The common threads grounded in the history of ARA and CIECA were made very clear at the CIECA conference. The development of standard formatting has led to the electronic procurement of recycled parts within the collision industry and for the creation of tools for CIECA members to enable bi-directional communication of data and messag- ing. ARA’s involvement in CIECA’s Salvage and Recycled Parts and Inventory Committees has provided CIECA with the first implementation case studies. ARA Completes Fluid Study A RA together with the Association of Global Automakers has completed a study that illustrates how design factors and methods impede fluid extraction. Specifically the data revealed that due to factors such as reservoir geometry, drain points, design components and dismantler techniques and methods, one hundred percent of fluid removal is not possible. The study focused on the fluid volumes The 2013-2014 FIRST Robotics-ARA Partnership Program is Underway! Sign-Up and Educate Today’s Youth About Automotive Recycling! or the third year in a row, the Automotive Recyclers Association and the ARA Educational Foundation are proud to partner with FIRST® Robotics Competition to provide small motor parts to their competition teams. Last year, ARA members donated over 2,000 recycled small motor parts to the FIRST® program. “All ARA members should jump at the chance to work with FIRST®,” says ARA President, Ed MacDonald. “As auto recyclers, we often contribute to our local school programs in one way or another with little acknowledgment. This is a chance for us as an industry to gain national attention.” F How You Can Participate 1. FIRST® teams are looking for: • Working small electric motors (such as door or window motors) • The motors should be clearly identified with the year, make, and model of the vehicle they came from. 12 Automotive Recycling | November-December 2013 2. Locate a local FIRST® team in your community by visiting www.usfirst.org and clicking on the link for Locate a FIRST® Team or Event. You can search for a robotics team by zip code and within a 10, 25 or 50 mile radius. OR 3. Mail the motors directly to the FIRST® warehouse location below: Andy Mark Attn: FIRST® Choice 2311 North Washington St Kokomo, IN 46901 765-868-4779 Please include your business card along with the motors you donate, so that the FIRST® teams know what recycling facility provided their motors, and realize that the motors are coming from all over the country. Your help creates goodwill from our industry! For more information, contact your affiliate chapter Executive Director or ARA Director of State Government and Grassroots Affairs, Jessica Thomas, at [email protected] or 571-208-0428. not collected from gasoline tanks, torque converters and identified potential design changes and/or collection techniques that could improve the efficiency and completeness of fluid collection. ARA Introduces New Website Design Template for Member Affiliate Chapters A RA announced in August a new benefit exclusively for its member affiliate chapters: a professionallydesigned association website template and content management system. The new benefit debuted in partnership with the Vermont Automotive Recyclers Association (VARA), the first affiliate chapter to participate in the new program. VARA’s new website can be viewed at www.vermontara.com. The template features a rotating homepage banner and news feed that is updated in real-time directly from the ARA website, an interactive Member Directory, exclusive members-only content, an online shopping cart, advertising opportunities for local vendors, and much more. The specialized content management system designed for ARA allows for the customization of each website as well as administrator access to the content management system, and is free of charge to all ARA member affiliate chapters. “The affiliate chapter website template brings a degree of consistency in terms of what information, news, and resources are available from the many unique affiliated chapters of ARA within the United States and around the globe,” said ARA CEO Michael Wilson. “Affiliate chapters will be able to ensure that their membership has access to the most up-to-date industry news and resources from ARA, while keeping intact the specialized member benefits and style that they provide to their members -- and all with very little time spent administering the website.” ■ Insure This By Wells Fargo Rental Car Disaster Everyone lthough textthe cost of purchasing comtextprehensive and collision coverage (also known as the Loss Damage Waiver orendit. Collision ■ Damage Waiver) can be outrageous, you may be best advised to purchase it for short-term rentals (less than 30 days). This is becoming increasingly the case as car rental companies charge ever-higher fees and penalties for occurrences not covered by most auto insurance policies. Here are some terms and reasons you should know what you are talking about when you do rent a car. 1. Loss Valuation. The value of a rental car, according to virtually all rental agreements, is determined solely at the discretion of the rental company and may be significantly different from the “ACV” basis used by most auto insurers. The standard personal auto policy out there covers “the lesser of the Actual Cash Value” or the “amount necessary to repair or replace the vehicle.” The rental agreement may very well contractually obligate you to reimburse the rental company for the “full value” of the vehicle (whatever that is). Under the current personal auto policy, the “betterment clause” may result in you being significantly underinsured relative to your obligations under the rental agreement. 2. Loss Settlement. As implied above, there may very well be a disagreement over the value of the vehicle or the amount charged for labor and materials to repair the vehicle. Depending on your personal auto carrier, the Appraisal Clause may be invoked by your insurer with the cost being covered partially by you. More importantly, your insurer has the right to “inspect and appraise the damaged vehicle before its repair or disposal.” However, the rental company may choose to effect the repairs immediately, potentially voiding your coverage because of failure to comply with the Appraisal Clause. There have been A 14 Automotive Recycling | November-December 2013 iStock.com/Ethan Myerson You will most likely be responsible for the rental company’s loss of rental income on a damaged vehicle. many cases of insurers denying coverage when the rental companies have a vehicle repaired immediately in order to minimize the lost rental value where your insurer never had the opportunity to appraise the damage. 3. Loss Payment. The rental agreement may require immediate reimbursement for damages and it is not uncommon for the rental company to charge your credit card. This, of course, can create a significant debt, max out your credit card (perhaps shortening a vacation or business trip), and result in litigation, etc. 4. Loss Damage Waivers (LDW). The rental agreement usually requires reimbursement for more than collision, making you responsible for any loss in value of the vehicle – beyond normal wear and tear, regardless of fault. And obviously, your personal auto policy must include collision coverage for at least one owned vehicle in order for the rental vehicle to have collision coverage. Therefore, if the Rental Agreement has a Loss Damage Waiver (not just a Collision Damage Waiver), your personal auto policy must also have comprehensive coverage in order for you to have “other than collision coverage” on the rental vehicle. Even so, keep in mind that your contractual liability under the rental agreement may be almost absolute so it is possible your personal auto policy may not respond to all losses. Likewise, it is possible that your personal auto policy may respond to losses not covered by a Loss Damage Waiver, such as use off paved roads, use while intoxicated, use by unlisted drivers, etc. Therefore, it is critical that you have both your personal auto coverage and the Loss Damage Waiver coverage offered by the rental company. 5. Indirect Losses. You will most likely be responsible for the rental company’s loss of rental income on a damaged vehicle. Your personal auto policy has, at best, daily and maximum caps for this indirect loss, and in most cases, will pay for loss of the rental company’s loss of rental income only resulting from theft of the vehicle. Additionally, rental car companies are increasingly charging for “diminution of value,” an indirect loss that is not covered by any personal auto policy’s physical damage section nor most credit card coverages. We have seen documented examples of these charges for amounts in excess of $7,500! 6. Administrative Expenses. The rental contract may make you liable for various “administrative” or loss-related expenses such as towing, storage, appraisal, claims adjustment, etc. None of these expenses are typically covered by your personal auto policy. 7. Other Insurance. The personal auto policy says it is excess over: (1) any coverage provided by the owner of the auto (does coverage include Rental Car company self-insured plans?) (2) any other applicable physical damage insurance, and (3) any other source of recovery applicable to the loss – collision damage or Loss Damage Waiver, travel policies, credit card coverages, etc. And what if your credit card coverage says it is “ excess of the auto policy?) The potential controversy over who pays what is obvious and can result in litigation. 8. Excluded Vehicles and Territories. The personal auto policy normally does not cover motorcycles, motorhomes, etc. and use of covered vehicles is limited to the U.S., its territories and possessions, Puerto Rico, and Canada, in which case your personal auto policy would not cover such claims. You have no choice but to rely on the rental companies Loss Damage Waiver for coverage under these circumstances. One often overlooked issue where a large coverage gap can exist is where you may be using valet parking at a hotel or restaurant during a trip. Many rental companies will have an exclusion in their coverage for “any drivers not listed on the rental agreement.” In summary, you can see how many exposures that are excluded from the rental companies coverage are covered by your personal auto policy and vice versa. Therefore, it is always a very wise decision when renting a vehicle for business or pleasure reasons to purchase the rental companies Loss Damage Waiver. You should not have to purchase their liability coverage if you have a personal or business policy that includes liability coverage for “hired and non-owned” vehicles, but you should ALWAYS purchase the rental companies Loss Damage Waiver (comprehensive and collision coverage). Please feel free to call me if you need to discuss this further. ■ For more information on how Wells Fargo Insurance Services can benefit your business, contact Bill Velin at 800-328-6311, ext. 3039, direct 952-830-3039, or by e-mail bill.velin @wellsfargo.com. November-December 2013 | Automotive Recycling 15 Marketing 101 By Mike French [email protected] Direct Mail … Dead or Alive? T he year was 1982. As Paul arrived to open his used auto parts business for the day he knew instantly that his sales flyer had landed in prospects’ mail boxes because he could hear all his phones ringing off the hook. His sales staff rushed in to answer them, but as soon as each one finished a call and returned their phone to the receiver, it immediately rang again. The phones continued to ring for days. At the end of the month he determined that his direct mail campaign had produced two distinct results. First, it produced a record month in part sales and, secondly, it produced pronounced symptoms of battle fatigue for the sales staff answering the phones and processing the mountain of part requests during the campaign. Without exaggeration Paul’s direct mail campaign had been a great success! That was how direct mail was for auto recyclers thirty years ago, but this is 2013, and much has changed in the world of direct mail marketing since then. “So, is direct mail dead or alive?” That’s a question recently posed to me when I was speaking at a recycler event. My answer, “No, it’s not dead, but it’s definitely different!” Different, indeed! No longer can you simply dump a large batch of flyers into the mail and get the kind of response that Paul did with his first campaign many years ago. There are a number of reasons for this change. These days, you’re competing with many other forms of direct response type advertising vying for consumer’s attention. Besides stuff coming in the mail, they get a mountain of marketing messages through electronic means such as the Internet, e-mail, and multiple forms of social media such as Facebook, Twitter and, LinkedIn. It is instant, inexpensive and non-stop. So, why should auto recyclers even 16 Automotive Recycling | November-December 2013 bother with direct mail when there are so many electronic advertising options available today? Here are some reasons. Direct mail will reach many businesses that electronic advertising will miss. Some businesses are not computerized. You will never reach them electronically. For example, only 60% of the automotive recycling industry is computerized. Therefore, if you tried to reach them only through electronic means you would miss more than half of them. This means that companies who have switched away from direct mail to reach recyclers have actually dropped off the planet, so to speak, to a large segment of their customers. This makes those customers sitting ducks for anyone else who sends them something in the mail. I tell my clients that they should engage in both electronic and direct mail in order to reach the most prospects. Some business owners are not computer-minded. They are what is known as “tactile” by nature, which means they have to physically hold something in their hand, like a flyer or magazine, in order to get it. They will never respond to electronic social media of any kind because of how their mind works. They simply cannot pay attention to it. Some studies say that half of humankind is tactile which means that you are missing a lot of customers if you rely solely on electronic advertising. Direct Mail is Sophisticated It’s targeted. It can be tailored to reach specific audiences from long-time customers to new prospects. Mailing lists are much better now making it possible for you to reach the right prospects with the right message. Customers and prospects receive only offers or information that meets their buying habits or individual needs. Mail pieces can also be piece by piece personalized with a specialized message printed on each piece that is cus- tomized to the specific person. You can also send mail to specialized segments such as only hispanic males, age 18-35, living within five miles of your business. It’s flexible and controllable. You can send out small quantities at a time to test a large list before rolling out to the entire list. You can divide a large list into smaller segments and mail them a few at a time as needed. When I rolled out my first auto recycler ad campaign back in the 1980’s, I mailed it out to 20,000 addresses all at once. This mistake swamped the sales team of the salvage yard I did the campaign for. They couldn’t keep up with the demand. I quickly learned to mail out to a fraction of a large list every week, depending on how many counter people there are answering phones. Predictable response rate. According to a study by Direct Marketing News, the average response rate to a direct mail campaign is four percent, meaning you can expect four responses to every hundred pieces mailed. I believe the response rate of any campaign is also affected by the quality of the mailing list and the offer on the mail piece. The better the list and offer, the better the response! Another factor that can affect a response is how personal the mail piece is and how personal it appears when it comes into the mail. One business owner wrote personal notes to two hundred prospects. He kept it short and simple by writing only five or six sentences to each person and he addressed them by their first name. He included a small handmade coupon offering a great savings on their first order and signed the coupon. He mailed them all in hand addressed envelopes with a first class stamp in the corner. He got a 97% response rate! ■ Mike French, president of Mike French & Company, Inc., can be reached toll free at 800238-3934, or visit his company’s Web site at www.MikeFrench.com. On the Road By Sandy Blalock [email protected] All-American Ohio m y travels recently took me to Ohio, a state with plenty of activity generated by busy automotive recyclers. In our industry, Ohio is a key strategic state, with one of the most restrictive salvage buying regulations of almost any other state. It is because of this that Ohio has been faced with the constant barrage of attempts to overturn those restrictions. Ohio requires all buyers of salvage vehicles to have a permit issued by the state of Ohio. You might ask why would someone who is operating legally be concerned with obtaining the required permit and why the sellers of salvage vehicles would be opposed to maintaining the appropriate registering to buy salvage vehicles. That is an excellent question! Our industry already faces enough competition for materials, with over 30 percent of all U.S. salvage vehicles being purchased by foreign buyers for export, so we must find a solution to protect the rest of our market. Our share is constantly being diluted with buyers purchasing salvage vehicles for any number of reasons, and many of which are not so honest. The entire U.S. auto recycling industry needs to support Ohio, as well as other states, to protect the sanctity of the systems they have fought so hard to maintain. It is imperative that we are proactive in everything that we do and making sure that legislation does not bury us under a mountain of paperwork, paint us into a corner or restrict our ability to be successful. Automotive recycling is already a tough job and we do not need legislators A Little Bit of Ohio he name “Ohio”originated from the Iroquois word ohi-yo’, meaning “great river” or “large creek,” presumably due to its proximity to what is now known as the Ohio River. Ohio’s state nickname is the Buckeye State after the Buckeye Tree. Ohio played a vital role in the Civil War because of its central location and population density. The Ohio River and Ohio’s railroads were important transportation sectors during the war. Ohio contributed more soldiers to the Civil War effort than any other state and was the home to the three top generals of the war, Ulysses S. Grant, Philip Sheridan and William Tecumseh Sherman. In 1803, President Jefferson signed an act by Congress that essentially approved Ohio’s Constitution and boundaries, however Congress never passed a resolution to formally admit Ohio to statehood. The custom of declaring official statehood did not take place until 1812 when Congress admitted Ohio the as the 17th state, and Louisiana as the 18th. It was not required at the time for a state to be formally admitted but in 1953 George H. Bender introduced a bill to Congress to formally admit Ohio retroactively to March 1, 1803, which happened to coincide with the first time the Ohio General Assembly convened. On August 7, 1953, President Eisenhower signed a congressional joint resolution that officially declared March 1, 1803 the date of Ohio’s admittance into the Union. When it was officially declared a state, Ohio was already celebrating its 150th anniversary of statehood! T 18 Automotive Recycling | November-December 2013 and others who do not understand our industry working against us. Each one of us needs to be cognizant of what is happening, in both our states and others, that impact our ability to run profitable businesses. Do not sit back and think, “Oh that will not affect me, it is happening in Ohio.” Wrong. What happens in Ohio or any other state greatly impacts us all. Auto recyclers are fortunate to have some great organizations, like the various state associations and ARA to help monitor and keep us all in the loop of what is happening around us. It is not enough, however, to just be a member. You must be engaged in your organizations and help solve the issues we all face. When called upon to serve, plan on stepping up in whatever way you can. Sometimes it only requires making phone calls, and who can’t do that? Other times it may necessitate a trip to your state capitol to testify or give your support. Another great way to support our industry is to offer legislators a tour of your facility to show them the complexities of what we do so well. The most important thing to remember is, do what you can when you can, and really make an effort. It is a costly endeavor to fight our battles on the legislative front and recyclers in Ohio have paid more than their fair share. During this legislative session in Ohio you may be asked to voice your support and concern and I hope that you will stand up alongside our friends there and lend the support they need to come up with a solution to this issue that will affect salvage buyers, not only in Ohio, but the rest of the country. For our industry, for your company and all the communities we serve, please be part of the solution and not part of the problem. ■ Sandy Blalock is a consultant to the auto recycling industry, traveling to help states without an industry association formulate them. She is the former the owner of Capos Automotive Recycling and an ARA Past President. Advice Counts By Jim Counts [email protected] Why Employees Bring All the Problems to Us T he short answer to this dilemma is because we train them that way. We tend to handle issues for the employees conveniently so they can’t be held accountable for the decisions. While that may seem over simplistic, it’s the reason. Employees are only human. They want to feel secure and not be criticized for their actions. If they come to us every time something comes up and we will tell them what to do, they are safe. Furthermore, if they are lucky, we might just take the problem off their hands and do it ourselves. The more it works, the more problems they bring to us. We may complain about why they can’t make any decisions, but that’s a lot better to them than taking a chance of making a wrong decision. Another reason that everything comes to us may be that we want it that way. We may say we want the employees to make a decision, but when they do, we tell them it’s wrong for some reason. My dad used to do that to me. I could do exactly what I saw him do, in what I believed was exactly the same situation and for some reason, my decision was almost always wrong. My solution to this dilemma was the same as any intelligent person – I stopped making decisions. He made comments like, “I don’t know how you are ever going to get through life without me around to make all your decisions.” I think anyone who knows me knows I’m not afraid to make a decision or take action. However, I’m also smart enough to not fight a losing battle. Micromanagement Cures If we keep changing the rules for every little exception, then we will continue to be forced to make all the decisions and our company is never going to grow. Here’s how to empower employees to make better decisions: 1. We should make sure to hire smart people who are willing to work and grow. Ultimately, we get what we pay for. 20 Automotive Recycling | November-December 2013 If we want our company to grow, we must have people who can learn to make decisions for us. 2. We should empower people, rather than belittle them, especially in front of others. If we make this error, we could be left with a workforce of employees who make decisions that can hurt the company; such as to miss work twice a month, to steal from us, to fake being hurt, or to cause dissention among employees. 3. We should never take a piece of paper from an employee until you know what is on it and why they came to you with it. This is very important. As long as the employee has that paper, it’s still their problem. Once we take it, we are likely to have to deal with it. 4. We should insist, within reason, that employees come to us with suggestions of what to do with a problem. Over time, this ultimately reduces the number of things they bring up because they have to think it through and can begin to handle problems directly without you. 5. We should be open to an employee’s suggestions on how to handle a problem. If we are not, all the problems will be ours to handle. Use these times as a positive training exercise to explain how we think the problem should be handled so they understand our reasoning process. Gradually, their suggestions should improve as a result. 6. We should be prepared for the fact they may not always do everything the way we would. This could be a good thing. After all, who says we have all the correct answers. Take them aside, tell them you appreciate the fact that they were willing to try to handle the problem and then explain what additional thoughts or situations you would like for them to consider the next time this problem comes up. Then, thank them again for being willing to handle problems. 7. We should always be on the lookout for opportunities to brag about the good decisions, such as at staff meetings or in front of other team members. It makes the employee feel great and encourages others to learn to do the same. Grow People If we want our company to grow, we must have people who can learn to make decisions for us. In order to do this, we have to start with reasonable intelligent people and let them know what our goals are, and how to reach them. Take the time to explain why we want things done a certain way, so they can learn to think our way. Solicit their ideas and thoughts on how to reach the goals and resolve roadblocks that arise. Always thank them for their input and be very careful to never embarrass or humiliate anyone. Always give credit for ideas where credit is due. People will appreciate it and will work hard to come up with more suggestions. Over time, you will also discover who is growing and blooming and who is a stagnant rock. Don’t waste your time watering the rocks. With over 40 years of combined experience in helping recyclers develop their employees and heirs into the next generation of managers, we have found this a key part of the succession plan. If you plan on retiring someday, it is important to start the process of bringing the key people up to speed on what has to be done and how to accomplish it. Teaching them how to make good decisions is just one of the things they have to learn. If you wait too long, you may find that you’re just tired, instead of retired. ■ Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit www.countsconsulting.com. Safety Matters From the ARA Safety Committee ARA Safety Tip on Automotive Lifts ANSI Standard/ Lift Certificate Label O SHA has no regulations that specifically address the subject of automotive lifts. Rather, OSHA uses the General Duty Clause (OSHA General Clause – Section 5(a)(1) of Occupational Safety and Health Act of 1970) which is a catch-all for unsafe working conditions, as an enforcement tool for lift safety. OSHA also relies on the American National Standards Institute (ANSI) standard for automotive lifts that requires that all lifts to be tested and certified. So when buying an automotive lift, make sure it has the “ALI/ETL Lift Certification Label,” shown above. This label indicates that the lift meets National Safety Standards. You can find sample lift inspection checklists at www2.worksafebc.com/ PDFs/Regulation/autoliftcheck.pdf. Lift Inspections An automotive lift should be inspected at least once per year and more frequently when specified by the manufacturer or the authority having jurisdiction. The ANSI Standard provides guidance to the owner, employer, and lift service and inspection provider(s) with regard to the required qualifications, training, reporting, and documentation for operators, inspectors, and maintenance personnel. This Standard also provides sample forms and checklists for use by all parties attempting to comply with this Standard. For a list of inspectors in your area’ please go to www.autolift.org/inspectors. php. Lift Types Until the 1980s, most automotive lifts were of the in-ground type. Today, surface mounted lifts make up a large part of the total auto lifts in use and include types such as the 4-post lift. Surface mounted lifts are typically bolted to the 22 Automotive Recycling | November-December 2013 garage floor and are usually powered by an electric motor which operates either a hydraulic pump or a screw type drive. All of these lifts must be ANSI certified and all users must be trained on how to operate them safely. In addition, owners/employers are required to appropriately document operator training by completing an operator training log. ■ Don’t be surprised by an OSHA inspector. Know that OSHA requires automotive lifts to be certified! Do your automotive lifts have the ANSI/ALI Lift Certification Label? Do You Have Your ARA Safety Posters Up? Call the ARA office to get yours today! Lessons Learned By Ginny Whelan [email protected] iStock.com/SLOFotomedia Modern Conveniences: Are They Convenient for Auto Recyclers? Everyone hat text does the future hold that text makes it harder and harder to embrace? Here are some thoughts from www.ericthecarguy.com endit. ■ to consider on the future of repairs. He explains: Telematics are the “extra” electronics in your vehicle; things like satellite navigation, blue tooth connectivity, and even a vehicle’s own IP address. More and more this stuff is showing up in modern vehicles. The question I pose is, how will this affect the future of auto repair and what is in it for auto recyclers? At some point these systems will need to be repaired. When that happens, will the independent shop or DIY be able to deal with those repairs? Will those repairers find their way to recycled parts or will it be dealers only? I’ve read a number of articles on how manufacturers view telematics as a great way to direct service customers to the dealers. It’s a powerful tool if a code sets and the customer gets an e-mail or message in the car that directs them to the nearest dealer. Independents should be strong supporters of “Right to Repair” laws. These are proposed laws that require manufacturers to make service information and technology available at reasonable cost to vehicle owners and independent repair shops so that owners will have a real choice about where to get their vehicles fixed. There was a big push for this back in W 24 Automotive Recycling | November-December 2013 the early 2000s that resulted in manufacturers “voluntarily” releasing some things -- Chrysler, for example, finally made the proprietary DRBIII scan tool available for purchase by the “public.” Manufacturers then successfully argued against a Right to Repair Law by stating that they were now voluntarily making everything available. They have continued to do so to some extent, but I have heard in the case of Chrysler that the aftermarket version of their new scan tool, the wiTECH, has much more limited functionality than the versions available to dealers. The tool also is not a stand-alone unit, but must be constantly connected to the Internet under a valid subscription to remain functional. Yes, they can say they’ve made it available to the aftermarket, but the devil is in the details. Now when my car gets a virus where do I take it, to Eric the repair guy or to an IT shop? My only hope is that as it has already happened before when the OBD2 standard came out and put order to a chaotic situation, it will also happen with this new breed of computer-cars. So there will be tools which are a simple cable to hook up into your laptop and will tell you a lot of things about the car. Ten years ago the very same tools cost heaps of money and weren’t so universal. It’s exactly like in IT; to solve a problem they create a whole new control system, which in turn adds ten new problems and tons of complexity. Once there was the carburetor. Then came ECUs and O2 sensors, then they had to monitor if the O2 sensor was doing its job, so they added a second O2 sensor, and so on. Remember, an ECU (or whatever) is only as good as its sensors are, in fact sometimes a perfectly running (mechanically) car can be stopped by a malfunctioning (for example) crank sensor, which fools the ECU into thinking the engine isn’t running at all, and thus it gets stopped. Maybe I’m narrow-minded on this, but a car is a car, not a computer. I think it is not quite as bad as it sounds. Manufacturers have always claimed their cars are so sophisticated they need special dealer tools etc. It’s a bit like cracking copy protection on your console game to prove what is wrong. They cannot afford to misdiagnose and do a big job that does not solve the problem. I think the days of assuming it’s a “pattern fault” and making a guess is over for an independent. Modern cars, in general, are far more time-consuming to work on. This means it is very easy for the cost of repair to be more than the value of the car. Therefore, I expect modern cars to be scrapped fairly soon after falling out of the dealer system. On the positive side, there will be bargains out there for recyclers who can solve these high tech issues. I’m concerned about the independent side of it right now, but I am more concerned about the amount of service information and training available to auto recyclers. Even for techs who work at the dealers, there is very little information about how these systems actually work, or how they’re supposed to work. Ginny Whelan, an ARA Past President, is ManThe infoaging supplied is basicalDirector ofby theChrysler ARA Educational Foundaly a moretiontechnically operator’s and founder ofwritten the ARA University, the training resource in auto remanual, leading not aWeb-based repair manual. cycling education. Visit www.arauniversity.org. It’s almost impossible to properly diag- modern cars, in general, are far more time-consuming to work on. This means it is very easy for the cost of repair to be more than the value of the car. Therefore, I expect modern cars to be scrapped fairly soon after falling out of the dealer system. nose some customers’ complaints of what their system is doing. Another huge problem is the poor implementation of technical standards, like Bluetooth. This is not just on the vehicle manufacturer’s side, but the phone manufacturer’s side as well. Some implementations of Bluetooth aren’t as robust as others, or are buggy, or simply won’t work with the vehicle’s system. To me this is infuriating. I understand why it doesn’t work, but the customer doesn’t. If there is a standard, why isn’t it being adhered to on all sides, phone and vehicle? Why should only some combinations of phone and radio work? All of the new electronics integration has one big downside. It makes it harder to concentrate on the actual driving of the vehicle. The upside is that this will be a big boon to the body shops. As for the repair side many of these systems are module based, like working with a flash ECM. Plug it in, flash it with the correct info using the VIN and it works. The problem will be the same as it is with ECMs currently, how much money does the independent want to spend to provide the service? Take a look at the current pricing for ECM flash data and add each module to that. Then you have the data security to think about. How do you ensure that only the proper people have access to the flash software and feature enabling items? Take On-Star for instance, it already has the ability to do much more than is advertised. Most of it is turned off or only usable with court order or similar. Vehicle tracking through GPS, ability to monitor all the aspects of the vehicle that are on the data bus, ability for remote activation of any ECN controlled item in the vehicle. All the fuss that was being made over the black boxes in the cars that could be abused by the police/insurance companies? That is just the very tip of what is actually already in that system. Now you add in the cell phone linking, data transfer and the self-driving controls (park assist or more)! Will auto recyclers be more than happy to tell the customer, “Sorry that is something we don’t sell?” ■ © Eric The Car Guy. All Rights Reserved. Reach him at [email protected] or find him on YouTube. November-December 2013 | Automotive Recycling 25 That’s My Opinion By Ron Sturgeon [email protected] How Long Will You Wait to Start Growing Your Sales Using the Web? I hope you learned some new things at the presentation about using the web to improve your sales that I gave recently at the ARA convention in Phoenix. It was so good to see old friends from the last 35 years and to make new ones. But, let’s get down to business. I gave you a few takeaways to initiate to increase your sales. Have you gotten started yet? Just today, I had lunch with a recycler who I gave ideas on an actionable plan to increase his sales on the web. I gave him those actionable insights over two years ago. He said, “I just can’t find the time to get started.” For 2 years? He admitted that he and I had created a good plan with the right steps but he still had not taken Step 1. As I listened to the reasons he had not taken the first step, I started to think about what some other business owners say about the web: “The Internet just doesn’t do much for us, so we’re focused on getting more walk in business and finding places to cut costs.” That’s a real problem. Many business owners have not unlocked the formula for getting sales from the web. They may have spent some money creating their site and experienced a good return on investment, so they regard the website as an expense that doesn’t bring in revenue. Think of developing your business website as similar to adding a new city to your sales and delivery area. You would be willing to spend big money for marketing, a delivery truck, another salesperson, or pretty much whatever it took to break into that new market. How is the web different? Perhaps it takes a little longer to get traction on the web, but it’s virgin territory if you have not been getting sales there. The web has compelling advantages from the expense side. Costs of expand26 Automotive Recycling | November-December 2013 So, have you begun to apply what you learned? Did you take notes, then go home and get to work using the web to buy cars with a lower cost of goods while increasing your inventory with parts your customers want? Have you begun to use Craigslist and eBay? Remember one of my clients doubled his sales in one month using the eBay techniques we discussed. Find the time to start growing your sales online today! The web has compelling advantages from the expense side. Costs of expanding on the web taper off as a percentage of sales as you gain traction. ing on the web taper off, as a percentage of sales, as you gain traction. That more your web marketing works, the lower your costs for the incremental sales. That’s not true about your new territory with the new salesperson and new truck and new driver. Had the gentleman I had lunch with found the time two years ago to start using the web to sell, he would be seeing his web revenues climb steadily. Instead, he waited. I can promise you, however, that one of his 25 or so local competitors did begin to deploy a strategy to sell more parts on the web without using Pay Per Click. In my presentation, we also discussed how to avoid pay per click, which will cut your expenses while you grow sales, and connecting your value proposition to the web to make sure you are. If you have a website, I will give you a free report that shows how search engine friendly it is and lists suggested changes to get more traffic from paying customers! Remember only you can make business great! To get a free website review or inquire about engaging Ron as a consultant, contact him at [email protected] or call (817) 834-3625. ■ Ron Sturgeon, an author and founder of Mr. Mission Possible small business consulting, www.autosalvageconsultant.com, combines over 35 years of entrepreneurship with extensive experience in consulting, speaking, and business writing. Ron shares his expertise in strategic planning, capitalization, compensation, growing market share providing field-proven, high-profit best practices. Tech Knowledge From the ARA Technical Committee Report of the Automotive Recyclers Association and Association of Global Automakers Fluid Study, September, 2013, Executive Summary T otal loss and end-of-life vehicles are routinely processed by automotive recycling facilities and scrap metals companies to manage environmentally sensitive materials, such as engine oils, coolant, transmission fluid, gear oil, gasoline and brake line fluid. Due to factors such as reservoir geometry, drain points, design components and dismantler techniques and methods, 100% fluid removal is not entirely possible. Existing techniques for collection include gravity draining fluid reservoirs and negative pressure evacuation of the systems. This study focused on gasoline tanks, torque converters and differentials and attempted to quantify fluid volumes that are not collected due to these factors and identify likely changes to help improve the efficiency and completeness of fluid collection. Current collection techniques for each selected component were documented at participating locations and special methods were used for removing and quantifying fluid left behind in each component studied. All participating locations were full-service, automotive recycling facilities, members of the Automotive Recyclers Association and by study design remain anonymous. No selfservice facilities were included in the study as they were less likely to process targeted model year vehicles. Sixteen automotive recycling facilities, located in 13 states and Ontario, Canada, participated in the study either for data collection or as part of initial scoping efforts. A total of 82 vehicles were processed to evaluate 76 gasoline tanks, 40 torque converters and 17 front or rear differentials for fluids remaining after normal processing and draining by the participating automotive recycling facilities Gasoline tanks studied had a mean volume of fuel remaining of 699 milliliters (ml.) (~23 oz.) after processing. Six different methods to remove gas were observed among the 16 participating facilities. The volume of remaining fuel was related to the technique used by dismantlers and to the design of the fuel sending unit (FSU), but not to the tank material (plastic or metal) or tank design. Facilities that did not remove the tanks before or after draining had 50% more remaining fuel than tanks that were dropped and the FSU emptied. Fuel sending units designed as a large container hold considerable amounts of fuel. If the tank is not dropped, the fuel in the FSU does not reach the drain point created during normal drilling or punching of tanks. Most remaining fuel in tanks is likely to be released through evaporation either during storage on the vehicle, when tanks are stored before disposal, or during the shredding process. Small amounts of fuel may be released as liquid gas during draining and handling before complete evaporation occurs. Evaporated gasoline (hydrocarbons) contributes to ozone formation. Maximum fuel removal is important to reduce safety concerns for fire and explosive hazards. Torque converters (TC) had a mean volume of 902 ml. (~32 oz.) of fluid remaining after processing. Only two TC (5%) of all units studied, had drain plugs. Neither of the TCs with plugs were actually drained using the drain plug during normal processing by the dismantlers. Dismantlers may be used to having no plugs available and they simply invert the TC on a drain table without checking. As the majority of TC are sold for reuse, sent for remanufacturing or processed as metal scrap for recycling, the remaining fluid is unlikely to be released to the environment. Front and rear differentials studied had a mean volume of 98 ml. (~3 oz.) of fluid remaining after processing. Contributing factors include time of drain and design of the opening. Typical drain times by the dismantler mechanics were limited to the inspection of the gears, housing, presence of metal shavings and the fluid condition (10 to 12 minutes). Some differentials have a significant internal lip that holds back small amounts of fluid after the cover is removed, particularly if the differential is not inverted 90°. As the majority of differentials are sold for reuse, sent for remanufacturing or processed as metal scrap for recycling, the remaining fluid is unlikely to be released to the environment. Based on the report findings, recommendations for dismantlers and automotive manufacturers were identified with the recognition that the benefits of design changes will take a number of years before they are commonplace for dismantlers. Recommendations for dismantlers include: 1. Dropping the gas tank before or after draining to remove the fuel sending unit will improve fuel collection; 2. Torque converter plugs, where available, should be removed for draining; and, 3. Differential draining should include a longer drain time and 90° inversion. Recommendations for automotive manufacturers to consider include: 1. Design fuel sending units without a container like area that holds fuel during dismantler draining; 2. Incorporate drain plugs in torque converter design; and, 3. Design differentials without a significant lip at the opening. ■ Acknowledgements: This study was funded by the Association of Global Automakers and the Automotive Recyclers Association. Appreciation is extended to the 16 automotive recycling companies that participated in the study and provided time and resources and required significant disruptions to production during data collection November-December 2013 | Automotive Recycling 27 TUTORIAL IN TRAINING driven to learn The making of the first-ever automotive recycling college program. B Y PAT O ’ C O N N O R , W A U B O N S E E C O M M U N I T Y C O L L E G E N ine months ago I was given the challenge to create the Automotive Recycling program for Waubonsee Community College. As I began developing the program I soon learned the impact the auto recycling industry had in moving our culture to a more sustainable future, perhaps more than any other industry in the world. Until recent years, most consumers believed that their problems were over when they left their garbage at the curb or traded their old, worn out car in at the dealer. But what most of them did not know is that the auto recycling industry is one of the industries that has been playing a key role behind the scenes, one that transforms what used to be thought of as waste into usable and viable resources. This is one of the first things I learned about the industry and one of the major reasons Waubonsee Community College saw the need to create a program that educates students on the skills and knowledge needed to enter into the auto recycling industry. First, A Little History Lesson This started two years ago when Ken Kunz, Professor of Automotive Technology for Waubonsee Community College in Sugar Grove, Illinois, met with Sean Krause, owner of Speedway Auto, Ltd. in Joliet, Illinois, and came up with the idea to teach an auto recycling class. They realized that with the abundance of new technology 28 Automotive Recycling | November-December 2013 incorporated into vehicles today and the ever-increasing Environmental Protection Agency (EPA) regulations being imposed on the industry, there would be a need for a more skilled employee within this field. Two years later, with two auto recycling classes under their belt, Waubonsee Community College was asked by the Illinois Green Economy Network (IGEN), a consortium of 48 Illinois community colleges who encourage green initiatives and is funded by a grant from the Department of Labor, to partner in creating an auto recycling course to add to IGEN’s list of classes that promote green and sustainable careers. Seeing that the automobile is one of the most recycled machines on the planet, this was a perfect opportunity for Waubonsee to bring their auto recycling program to the next level. Program in Action Waubonsee’s new Automotive Recycling program was launched in June of this year and is being taught in a combined format that includes both online and in-class instruction, allowing easier access for students. The program focuses not only on the skills that are already required in the industry, such as vehicle dismantling, Inventory Management System (IMS), and parts grading, but also introduces the environmental practices that have influenced change in the industry. The learning path that each student takes begins with an overview of the industry and the direction it has gone, then moves into safety and safe shop practices. The class then takes the student through the entire process of managing a vehicle that has reached its end-of-life stage and emulates real-life work experience with all the tools and equipment necessary, including IMS software, depollutioning stations and forklifts. The goal of the program is to mirror what is happening in the field now, as well as implement new and innovative technology and procedures to help advance the industry. Technology and innovation have aided in creating a safer and more profitable business environment for all industries. They have helped streamline inventory and manufacturing processes, enhanced working environments to be more efficient and safe, and brought our world together to allow us to communicate farther and more effectively across our entire planet. But to survive the technological adolescence we are now experiencing we must keep our focus on educating our workforce. We must try to find the direction that will allow us to take advantage of opportunities that will be made available to us as well as transform our attitudes of yesterday into tomorrow’s possibilities. This is the view chosen in creating Waubonsee’s Automotive Recycling program, along with the thought that if we want to be competitive locally and globally, we need to develop the educational models that keep pace with new technology. This will allow us to deliver the right education for tomorrow’s workforce. I would like to thank everyone that has helped Waubonsee in developing our auto recycling course. This all would not be possible if it wasn’t for the cooperation and input of several ARA members including Sean Krause of Speedway Auto, Doug and Dave Anderson of I-55 Auto Salvage, Jay and Larry Brosten of Auto Parts City, Paulette Cuvala & Mark Sievert of LKQ Corporation, Jim Hope of Stafford’s Auto Parts & Recycling and especially Ginny Whelan, ARA Educational Foundation Executive Director and ARA University President. We depend on input from the ARA and local automotive recyclers to give us direction on what is needed in today’s industry and we hope to continue to work together to achieve the goal of a brighter future and a better tomorrow. ■ We must take advantage of opportunities that will be made available to us as well as transform our attitudes of yesterday into tomorrow’s possibilities. Pat O’Connor is the Automotive Recycling Program Developer at Waubonsee Community College in Sugar Grove, Illinois. November-December 2013 | Automotive Recycling 29 CUSTOMER SERVICE From Good to Great Sales Strengthening your parts sales requires a systematic approach to training your sales team. B Y TA I A M . C E S A N A W alking in to my local chain coffee shop I am greeted with a very typical, “What can I get you this morning?” On this particular day I was ordering coffee for a couple of people at the office. I told the barista my first drink order, “I need one grande, soy, vanilla latte...” Then, I politely paused as she was entering the order so I wouldn’t confuse her with my next drink request. But before I could continue she blurted, “That will be $3.45.” I explained that I actually need to order a couple other drinks. She had an annoyed look on her face as she got back into the order to add to it. I finished telling her my drink orders and again before I could ask for anything else she gave me the total price for the drinks. At this point I was quite exasperated and I told her I would also like to order some food. I felt like I was inconveniencing her by adding to my order. It was a very uncomfortable situation. I left the coffee shop that morning wondering how much money this particular multi-billion dollar company loses because their staff isn’t trained to ask for more sales. You may wonder what ordering coffee has to do with auto parts, but sales are sales. Almost every day I am on the receiving end of customer service and, whether good or bad, I take a moment to reflect back on my own business and how I can apply what I have learned to improve our sales. 30 Automotive Recycling | November-December 2013 My uncomfortable experience at the coffee shop, which happens more often than I would like, has me thinking about one of the most basic principles of the sales profession, but often the least practiced: asking for the sale. If you don’t ask for the sale the answer will always be “No.” When we hire and train our sales people are we training them to sell? Do you train them to ask for the sale? Many of us, myself included, have hired sales people and trained them on nothing more than how to answer the phones and enter orders thinking that the sales part takes care of itself once you get a customer on the line. The sad truth is it doesn’t. Even though we are blessed not to be in an industry where we are trying to convince someone they “need” to buy some luxury item, we can’t count on the customer to close the sale, we must train our sales people to do so! iStock.com/spiral_media Following are my five quick tips for training your sales people to ask for the sale: 1. Get the customer to acknowledge that the part has value to them. This is one of the oldest sales tactics in the book but remember that sales is a game of psychology. You need to get inside your customer’s mindset and help them see why ordering the part from you is better than any other option they may have. In the case of used auto parts, getting the customer to see the value in the part they are after usually has to do with learning about what they are repairing and why. Whether it is an individual or garage you must ask questions about the job. This will help you better understand their needs and then in turn comment on why the part you have in stock will help them get the job done. Often in our industry one of the biggest values to the customer is the lower price of used OEM parts versus new. You can almost always get the customer to agree that the part will save them money, this is a first step. But even so, your customer probably has many options for used OEM parts, which is why you also need to stress the value that your company has to offer. This can be many things including a more competitive price, a better warranty, the right color body part, low mileage, quick delivery, etc. Pick your strongest selling point and get your customer to agree that this will help them get their job done. 2. Don’t blurt out the price and then wait for an answer. If price must be discussed, follow it up with a question and guide the conversation into closing the sale. If you blurt out the price and wait for the answer you are only rolling the dice and hoping you will win. Yes, there is a slight chance that the customer will immediately agree to purchase and proceed, but there is a much greater chance that they will not and then you November-December 2013 | Automotive Recycling 31 CUSTOMER SERVICE have lost control of the sale. I find that price is a hard thing to avoid in our industry because we price on supply and demand. Many customers realize that the price of our parts fluctuates depending on the market. Often a customer calls specifically letting me know they are checking the price. If this is the case, my favorite thing to do is to wrap the price up in a question that will get the customer to state a positive affirmation. For example “Yes, I have that engine in stock for $650, you wanted the one with 80K miles correct?” or “Yes, I have that front door in stock for $150, you were looking at the red one on our website correct?” The customer will answer with a “Yes” because you are really just confirming something that you already knew about what they were looking for. You then have the opportunity to set up delivery for the part by another engaging question “When do you need the part by?” and then use that answer to get your order in and close the sale. 3. Always ask if there is anything else that the customer needs. This is one of the simplest and least invasive questions you can ask your customer that can lead to more sales; yet again it is often forgotten. If you took the time in the beginning of the conversation to understand the job they are working on you might already have an idea of the other parts they might need and can make suggestions without asking. For example, if they called looking for a rear quarter panel, they might also need the tail light, bumper and trunk lid. Do not 32 Automotive Recycling | November-December 2013 assume that the customer would think to ask if they need it. Many times shops are working off of repair estimates that have not taken into consideration that vendors have more of the required parts than originally written. If nothing else, make sure you wrap up your sales with a simple “Can I help you get any other parts for this vehicle?” or “Do you have any other jobs right now that I can check on parts for you?” 4. Make it easy for your customer to order from you. In the case that you were not able to close the sale on the first phone call you must outright ask what it will take for them to decide and then give them a reason to reach you or confirm that you will follow up. If you don’t have information about what is driving their decisions, you will never efficiently make sales. Most people are either searching for pricing or availability. Find out which it is and then make your pitch based on what they need. If the customer tells you that they do not know if they will get the job, you need to ask when they will know. Then offer to call them back to make it easier for them. Also make sure you are using your quote system to its fullest potential. We know that quotes are useful for our sales people to remember details of a request but they are not used as a selling tool often enough. Make sure your sales people tell the customer they have the part request in a quote. Have them offer the quote number or a faxed or e-mailed copy of the quote. Even just verbally communicating to the customer that there is a record of the request on file helps to solidify in the mind of the customer that their business matters to you. If you discussed special pricing or requests during the conversation make sure you confirm that, too. It shows the customer Yes, that you are paying I have that engine attention and gives in stock for $650. them a reason to You wanted call you back. the one with 80K 5. Stop fearing remiles, correct? jection. One of the hardest parts of asking for the sale is being rejected. I have read countless articles on sales that remind me that a rejected sale is not to be taken personally. The customer is not saying “I do not like you,” they are just saying that they are not ready or willing to give their money in exchange for your product or service. Pick your strongest selling point and get your customer to agree that this will help them get their job done. However, many of us, myself included, can feel like it is a personal offense when a customer outright tells us why they won’t purchase our parts. Some customers feel it is necessary not only to refuse the sale but add insult to injury. I will never forget during my first year in the business I was on the road making customer visits to local body shops and garages. I had my little speech prepared and my visits were going well until I got to one Mom & Pop shop where the owner came out to talk to me. I introduced myself, thanked him for his business and offered up the free pens, notepads, and food that I had brought with me when he told me outright that he hated buying used parts, he thought they were all junk and only did so when he had to for insurance jobs. He then went as far as to hand me back my pens and notepads but said he would keep the food. Being new to the sales side of the parts business I think I turned five shades of red, apologized profusely for bothering him, and walked out the door with my tail between my legs. I will never forget how rejected I felt and I have thought about it a lot since then. I learned a couple of things that day. First, his rejection of my product was not a personal insult, but him verbalizing frustrations with past experiences. Second, it was an opportunity to engage him in a discussion of why he had that opinion about used parts and to possibly change his mind, or at least convince him that when he had to buy used parts that he should buy them from us. If you take sales rejection personally you will always be paralyzed in fear. Ask for the sale and be prepared with information that will help you make the sale when there are doubts from your customer. ■ Taia M. Cesana, a second generation auto recycler, is Vice President of East Coast Auto Salvage, Inc., in Higganum, Conn. November-December 2013 | Automotive Recycling 33 EMPLOYMENT PRACTICES You’re HIRED Extending the scope of your hiring process to analyze candidates from different perspectives can eliminate the surprise factor once they are hired. B Y M I C H E L L E K E A D L E - TAY L O R “I am slow to hire and perhaps should be a little quicker to fire sometimes,” admitted Eric Schulz, co-owner of AAA Auto Parts. “I know that many auto recyclers will say they don’t have time to devote several hours to an interview, let alone two or three with a potential candidate. The key thing I’ve learned is that if you take the time to hire the right people it will pay off in the long run. We tend to hire people and throw them into the fire then we wonder why they leave? Perhaps they weren’t the right people to start with, even though they may have had great skills. 34 Automotive Recycling | November-December 2013 “It’s taken me some time to learn the best way to hire people is to look at their personality and problem-solving skills first, rather than how much experience they have with cars,” said Schulz. “I used to start off with their skills first, but after hiring people who had great skills but didn’t fit into the overall culture of our company I started to see that it was more important that they fit in with our team and the flow of the company culture. I also feel that if we take the time to train our employees properly, it will pay dividends later and we will retain some good employees.” THE SECRET TO FINDING AND KEEPING GREAT EMPLOYEES M any businesses look for employees by placing ads in local newspapers, using online job resources, or even turning to a hiring agency. They attempt to attract good employees by offering a good and fair salary and a great benefits package that includes health and dental insurance, paid time off, and retirement benefits. Schulz says he has used all these things, but he has found that the The AAA Auto Parts crew at a recent company gathering to celebrate the 30th anniversary of the company. secret to both finding and keeping great people has to do with your own reputation and how well you treat your employees. “Finding a great employee is just one part of the equation,” said Schulz. “He or she must also want to work for you as well. Your reputation is everything and you never know where your next employee is coming from. If you treated someone in the drivethrough at McDonald’s poorly and then they find out it’s you, you have lost a potential great employee. Most people will say that their customer is number one, but I like to say that it’s your employees that are number one. When you treat your employees like they are number one, they will treat the customers that way, too. They will also want their friends to work at your company too and experience the culture that treats them with respect, integrity and takes a personal interest in them. Almost all of our hiring is now done by word of mouth and we’ve reached the point where potential employees are waiting to work for us.” Schulz says they bring up open positions in their weekly meetings because employees might want a change in position. He finds it tends to work a little like Facebook, in that advertising it to their employees opens it up to all the people their employees know as well. They also offer incentives to employees if they refer someone for hiring. “There are many great sources to begin to look for great people,” said Schulz. “One of the best that I’ve found is word of mouth. We ask our employees. “I’d rather train my employees and have them leave, than not train them Jun Agulto, Engine Dismantler and have them stay.” –Shawn Collins November-December 2013 | Automotive Recycling 35 EMPLOYMENT PRACTICES “I started asking for an application even if the applicant had a resume after attending an ARA seminar two years ago,” said Schulz. “I learned that the application is a form of contract and it satisfies the legal requirements for Human Resources. They may also list different references than what they have on their resume.” As an employer, it’s important to make sure your application complies with all state and federal requirements and stays up on the latest regulations in your state. For instance, there is a current battle going on over banning questions about criminal history from applications so it is wise to be up-to-date on your state’s regulations. WHAT TO ASK IN THE INTERVIEW PROCESS First Interview Brian Corley, Sales Schulz says he used to dread annual reviews but now he no longer conducts them. Instead he has opened up monthly (or more) dialogue that serve as mini-reviews. “I also actively recruit and go after people who I, myself, have received exceptional service from. The way they treat me is a good indication of how they will treat our customers. I carry business cards with me so I can give them out if I come across someone with potential for our industry. I also keep an active file of potential employees. I go through the applications every four months or so and call applicants to let them know that I still have their applications. I take the time to make contact and to find out if the applicant is still searching for a job, in a new position, or is still interested. This helps establish contact with potential employees and lets the applicant know that you are aware of their potential and that you are still interested. This makes it much easier once a position does open up.” HOW DO I QUALIFY A GOOD CANDIDATE? I t’s a big job to start to sift through the various applicants and determine which one best fits the position. Schulz says he starts off by eliminating all incomplete or unsigned applications. Then he makes sure references are listed and he asks the applicant to fill out an application even if he or she has given a resume. 36 Automotive Recycling | November-December 2013 T he interview process is an important part on the journey to qualify a good candidate. Once you’ve established that this person has skills you feel would match the position, Schulz feels that taking your time to interview the applicant several times is key to finding the right employee. “The goal of your first interview is to make sure that the applicant will fit and get along with your existing employees,” said Schulz. “Avoid asking yes or no questions; instead ask open ended questions.” Begin by disclosing your drug and alcohol testing policy, Schulz recommends. If there is a problem with that, you don’t want to waste any more of your time or theirs. Then, move on to asking the applicant how much he or she knows about your company and the industry. Basically, you need to get to know your applicant so your goal is to get him or her talking about himself or herself. “Some examples of the type questions I might ask, include,” says Schulz, “what do you like to do, tell me about your best friend, if I asked your friend or spouse to describe you what would they tell me? If you have a free weekend to hang out with anyone you want and do whatever you want, who would you hang out with and what would you do? Also, you can ask the applicant where he or she would like to be in three, five, ten years from now to determine if the goals he or she has match the goals you have for the position.” Schulz recommends that after the first interview, assuming you’ve established this candidate could possibly become one of your employees, make sure to check all references. Call all of their professional and personal references and verify information from the interview and application. Then ask for the contact information of another person who knows the applicant and call that person. That person may be surprised to hear from you, but you will get more honest answers. “Most people listed as references have been prepped to some degree knowing they might get called, but when you call the second layer of people who know the potential employees you’ll get a more honest assessment,” said Schulz. “If you get glowing comments from this second layer of referrals then you’re on to a pretty decent person.” Second Interview O nce the applicant has passed the reference check it’s time for the second interview. “For me, the second interview is when I get into the specifics of the job, including what it takes both physically and mentally,” said Schulz. “Get them talking about their previous work experience and skills and how it might apply to this job. It’s important to remember that even if the applicant doesn’t have all the skills you require for the position, you can train a person who is trainable. Talk about problem solving and critical thinking so you can find out if he or she can think on their feet as well as independently. Also ask them why they think they would be the best candidate for the job. All of these ques- tions will give you an idea of how close a match they are to the position.” Third Interview D uring the third interview, you will need to discuss benefits in details and go into salary negotiation. “If your cap is $18 per hour and you want this employee to stay, then you will need to take this into consideration,” said Schulz. “You can start anywhere in your salary range that you want such as higher for more qualifications but I find it’s a good idea to let the applicant know there is a cap. Always, always, always do a pre-employment drug screening and a background check. If I am hiring a sales person or anyone who will be handling money, I also do a credit check. For some positions, it is also a good idea to do a motor vehicle background check. NOW THAT YOU’VE GOT THEM, HOW DO YOU KEEP THEM? Step one T he first step in getting off on the right foot with a newly hired employee is giving them an orientation and telling them everything they need to know for a successful start in your company. Give them the November-December 2013 | Automotive Recycling 37 EMPLOYMENT PRACTICES ping. That way, the new employee has someone he or she can go to with questions about how the process is done as well as someone to connect to and help the transition into the business. Initially, I have them get together once a day, then less frequently, as the new employee gets used to things.” Step Two T Eric Timm, Engine Dismantler Empower employees to do the things they excel at and enjoy, instead of bogging them down with things they are not really excited about. whole story of the company history and an employee handbook. Make sure to go over your expectations regarding customer service, quality and respect as well as company policies. It is a good idea to give several weeks of on-the-job training, including safety training from the ARA University online. “We rely heavily on ARA’s University safety training to ingrain good safety habits in our new employees,” said Schulz. “As part of our orientation, especially with sales, we have new employees work with each department at least half a day so they can learn how different departments do things and how it affects each of the other positions in the business. It helps the new employee to see the bigger picture and how his or her job affects other jobs.” Recently, Schulz and his team have implemented a mentorship program that assigns a mentor to each new employee. That mentor serves as another source to answer questions and help the new employee to “learn the ropes.” So far, Schulz says it seems to be making a difference. “We just implemented this mentoring program not too long ago but it’s really taking hold,” said Schulz. “When we hire a new employee, we assign him or her a mentor from a cross department. For example, if I hire an outside dismantler then I might give him or her a mentor from Quality Care or someone in ship- 38 Automotive Recycling | November-December 2013 he next key step in keeping your great employees is to engage in constant conversation with them. Schulz says he used to dread annual reviews but now he no longer conducts them. Instead he has opened up monthly (or more frequent) dialogue that serve as mini-reviews. He visits the employee’s workplace and discusses one or two topics each visit. He says he always finishes the discussion with a personal question and tries to learn more about the employee’s family and hobbies. “I always make notes on what each employee is telling me which is particularly useful when we are trying to implement something new,” said Schulz. “Then we can begin to see trends and find out if this new proposed change will really work or not.” Step Three E mpower employees to do the things they excel at and enjoy, instead of bogging them down with things they are not really excited about. Same goes for owners – hire someone to do what you’re not good at. “We have to be really careful that we don’t take really good employees who are exceptional at one thing and give them more responsibilities because they were so great at the one thing,” said Schulz. “When we do this, we often end up with an employee who is not great at anything but mediocre at all his or her responsibilities. For example, if you have an employee in a body shop that is a really good estimator and attracts customers because he is so good at that role, don’t give him other responsibilities, such as insurance information, just because he is so good at estimating. Let him excel at what he is good at, because then you’ll have an employee who is great at something and that spark will not die out under additional responsibilities. Step Four S et realistic expectations regarding compensation. According to Schulz, you’ve got to know what each job is really worth and pre-set salary ranges for each position. “It is an uncomfortable conversation for everyone involved but eventually you have to have the money conversation,” said Schulz. “Pay scales can certainly help in this situation. It is not to say that your people shouldn’t want to make more but they have to realize that they have to bring more to the table in order to make more. The days of longevity raises are long gone. If an employee is at the top of the pay scale already, they need to consider how they can grow within the company with either more responsibility or a different position.” A FEW MORE RECOMMENDATIONS S chulz has worked hard to develop this hiring program and the payoff has been a solid staff of long-standing and reliable employees. Here are a few more of his tips: • When it comes to incentives and sales commissions, you want to avoid the incentive pay trap. For some positions, such as delivery drivers, incentives work great. Make sure there is an incentive for picking up returns, too, and this will ensure great customer service on their part. • If you want to remove the “you stole my sale” issues and improve customer service fast, take your sales people off commission. The quality of sale and the bickering between sales people goes away overnight and they become more of a team. I am certainly not saying that you completely stop tracking sales and all the other stuff that goes along with a sales team. You still need to make sure each of them is carrying their own weight. Not only does it take pressure off of them, we no longer need complicated formulas and reports just to pay our people. • Provide an annual earnings statement for each employee. Include employer paid benefits, employer taxes, 401K matching funds, pro-rated employee outings or parties, and anything else employee related. We show our people what they are really getting by working for us. Most employees are amazed at what it actually costs to have them working for you. It can be an education for both you and the employee. It takes time and deliberate effort to change the course and culture of your organization but the hiring process that Schulz and the team at AAA Auto Parts has implemented has paid off with great employees and a company culture that regularly attracts potential employees. ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. November-December 2013 | Automotive Recycling 39 PROGRESS FOR MEMBERS direct IMPACT ARADirect provides automotive recyclers a fast lane in a crowded salvage marketplace. B Y M I C H E L L E K E A D L E - TAY L O R A key element in the success of an auto recycler’s business is acquiring good salvage. With an ever-increasing crowded marketplace, obtaining quality salvage has grown more difficult in recent years. It’s become a serious concern for all association members. So much so, that is has become a constant and unsettling topic of discussion among auto recyclers. As the expression goes, you cannot sell from an empty warehouse. To meet this concern head-on, ARA has recently launched ARADirect, an Internet salvage auction that is poised to be a solution to the members’ concern. ARADirect is a service of ARA Product Services, LLC (“ARAPS”), a subsidiary of the Automotive Recyclers Association (“ARA”). ARAPS, along with Alteso Group, offers the automotive recycling industry a new and refreshing means to acquire 40 Automotive Recycling | November-December 2013 vehicles and thus meet their acquisition demands. The ARADirect platform provides a significant benefit for vehicle disposal and fleet management for insurance companies, wholesalers, fleets, franchise dealers and others in a manner that significantly improves their methods of vehicle disposal and changes the way auto recyclers acquire product. “We are able to provide this product directly to our membership, at the same time giving the vehicle providers a fully responsive North American buying clientele,” said Ed MacDonald, ARA President. “Furthermore, certain funding generated from this program will be reinvested into endeavors which will foster new growth and development in our industry.” “ARADirect is the newest source for salvage and damaged vehicles for the automotive recycling industry, with buyer membership to the site restricted to ARA members, State and Provincial Affiliates, and licensed automotive recyclers,” said Ginny Whelan, Director of Procurement for ARA Product Services, LLC. “This impacts the crowded bidding marketplace because it gives ARA members and the professional automotive recycling industry the advantage in buying quality salvage from one site that has eliminated the middle man by bringing multiple sources of inventory right to members’ fingertips. “The marketplace is crowded in many ways, including a vast number of auctions, variety of buyers, vehicle conditions and title considerations. Within the auction network there are certainly so many sizes of auctions from less than 100 units to over 1000 units per facility,” Whelan said. “Most recyclers purchase many of their vehicles through online auctions which means they must consider quality of the description, quantity, and quality of the pictures and other information given to calculate the best possible bid for that particular auction platform.” ARADirect is different from other auctions because it’s an auction hub specifically developed for ARA, state association, and provincial organization member buyers. This hub gives registered buyers the opportunity to buy vehicles efficiently both through area pools as well as in independent auctions worldwide; all from their desktop or iPads. Through ARADirect, members will benefit from a wide network of buying options listed on one site, with significant discounts in customary pool fees. Access to the global inventory of salvage vehicles will only be one click away for ARADirect members, giving member-recyclers an edge in managing their purchased inventory and building a sustainable and growing business model. The website is easy to use, with the ability to comfortably scroll through all the items available for purchase. By clicking on each vehicle the purchaser will see photos of the vehicle as well as details, date of the auction, price, current bid, and whether or not the purchaser can buy it now. There are also full vehicle descriptions and shipping information. One of the challenges recyclers face today in the crowded marketplace comes when trying to purchase a true total loss vehicle such as a Hurricane Sandy flood car. Those vehicles have already been evaluated by an insurance company or collision shop and deemed beyond a reasonable repair and unsafe to be on the road. Some states allow those vehicles to be sold at auctions that are open to the general public, thus allowing unlicensed buyers, exporter, and rebuilders who may not be concerned for the impact on the environment or safety to purchase vehicles. Doug Reinert, Chuck’s Auto Salvage, feels ARADirect addresses that problem head-on. “ARADirect is the best solution,” he said. “ARA has set up a competitive auction platform to benefit the seller and the recycler. ARADirect created a marketplace where thousands of recyclers can have the opportunity to bid on vehicles for the purpose of recycling, not rebuilding. With up to thousands of buyers, the seller can maximize their BENEFITS TO MEMBERS: • FREE Registration – NO ADDITIONAL COST TO ARA MEMBERS AND AFFILIATE CHAPTERS. Fee paid on vehicle purchases only. • Expands the inventory pool for good quality salvage • Brings multiple sources for acquiring vehicles into one easy-to-use site that is only open to REGISTERED professional auto recyclers. • Allows ARA Member and ARA affiliates to shop for vehicles from home or the office and to bid on vehicles through both area pools and independent auctions worldwide. • Easy-to-use site. • Gives members significant discounts on customary pool fees. • Gives ARADirect members an advantage in purchasing good quality salvage that can sustain their business. • Saves time and money. November-December 2013 | Automotive Recycling 41 PROGRESS FOR MEMBERS return, while backing up their corporate commitment to be environmentally responsible by being sure their vehicles are purchased and processed by responsible auto recyclers. “I look forward to the continued success of ARADirect as a recycler who not only has the opportunity to purchase a particular vehicle but if I don’t have the winning bid, I at least have the chance to buy a part from a fellow recycler to satisfy one of our customers’ orders,” Reinert said. There is no cost to ARA and ARA Affiliate chapter members to sign up for ARADirect when they register by filling out the form available on the ARADirect website, www.ARADirect.net. Once registered, members will gain the ability to bid on and secure the vehicles they need to continue to grow their business. Registered bidders will be able to place bids during the online auctions remotely from any location, and the bid amount covers the price of the vehicle at the auction. Any additional fee or transportation cost will be separate and vary from item to item, depending on the price of the vehicle and membership type. 42 Automotive Recycling | November-December 2013 “ARADirect is counting on the robust support of our automotive recycling association membership, both national and statewide, which will help draw additional salvage vehicle supply opportunities,” said Whelan. “After considerable market analysis to understand the challenges of this initiative, we have learned from the experiences of others. Issues related to storage, low dollar inventory, and static location have been deliberated at length and stakeholders know that the near-sourcing hub that is ARADirect can successfully address these challenges.” “We have listened to our membership, developed a user-friendly platform, and launched this product in order that our membership and indeed, all association members, benefit from the continued flow of product at the same time solving our suppliers’ demands and growing our associations,” said MacDonald. “These are wonderful positives for our current industry members.” Get more information and sign up for this online auction service at www.ARADirect.net. ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. EXECUTIVE COMMITTEE Powered By Sonny’s Incoming Secretary RD Hopper is ready to do his part. B Y M I C H E L L E K E A D L E - TAY L O R have benefitted from other ARA members who have given of their time to serve on the Executive Committee – now it’s my turn to do my part,” said RD Hopper, the new Secretary for ARA’s Executive Committee for 2013- 2014. “I plan to bring my energy, industry experience, and enthusiasm to the table and do what I can to make sure our industry stays valid and continues to thrive in the future.” “I Hopper grew up in the auto parts industry, spending many summers with his grandfather, L.D. Hopper, a District Manager for the Arkansas State Highway Department who was responsible for, among many things, vehicle and equipment purchases and maintenance. RD learned a lot about cars and parts during those summers. In addition to that, RD’s father, Roger Hopper, owned and operated Hopper’s Auto Parts in Mt. View, Arkansas for many years. When RD wasn’t in school, he was often helping in the family business and learning hands-on. “I grew up around new auto parts and it wasn’t until my wife and I were expecting our first baby, that I decided to make the move to auto recycling,” said Hopper. “My first job was as an auto parts salesman that eventually led to my wife and I purchasing Sonny’s Auto Salvage.” Sonny’s, which is located in Jacksonville, Arkansas, has been serving the Central Arkansas area for over 37 years and has been a family-owned and operated organization. There has been a salvage yard at Sonny’s current location since the early 1960s. It was owned and operated at varying times by both James Bell and Joe Mills. In 1976 Sonny Taylor purchased the business from Joe Mills and renamed it Sonny’s Auto Salvage. The Taylors’ operated the business for 22 years before deciding to sell it to the Hoppers in order to retire. RD Hopper and his wife Jennifer purchased the business in June of 1998. They have continued the tradition of family with their children, Blake (25), Alex (12) and Anna (9), representing yet another generation of Hoppers growing up in the auto parts November-December 2013 | Automotive Recycling 43 EXECUTIVE COMMITTEE business. Sonny’s Auto Salvage encompasses about 22 acres and specializes in late model domestic and foreign cars and trucks. Sonny’s also stocks a wide variety of aftermarket parts and some new OEM parts. It has grown to employ about 20 people. Hopper closes the business on Saturday so employees can spend time with their families. Hopper has years of industry experience that he brings to his new role as ARA’s Executive Committee Secretary. Sonny’s has been an active member of ARA and Arkansas Automotive Dismantlers and Recyclers Association (AADRA) for many years and Hopper served as President of AADRA and is currently their Southwest Director. For ARA, Hopper was recently an At-Large Director and is the chair of the NMVTIS workgroup which is part of the Governmental Affairs Committee. In this capacity, he regularly works with both the state and federal legislative houses. Sonny’s is also a charter partner and member of URG. Hopper says that one of the main goals he hopes to achieve during his term as Secretary is to help ensure fair trade in the industry. 44 Automotive Recycling | November-December 2013 “One of the things I would like to really work on is establishing a fair marketplace to purchase total-loss vehicles, especially when it comes to international bidders,” said Hopper. “I’m all for free trade as long as it is fair trade. We want to work with honest businesses to ensure that salvage is not bought by less than honest businesses that may have the intent to put unsafe vehicles back out on the road. “I also want to work on the interchangeability of parts and accuracy of descriptions between insurance companies, body shops and recyclers to make sure we work together to get vehicles fixed quickly and economically. We want to be part of the solution – getting the right parts to the right place at the right time. We can better achieve this if our parts descriptions and information are uniform and accurate.” Hopper is ready to roll up his sleeves and get to work and says he is looking forward to working with many ARA members. “I love the people in this industry,” said Hopper. “They are like family and I can’t wait to meet new members and work together to make our businesses the best they can be!” ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. GRASSROOTS SUCCESS Can Fairy Tales Come True? A story about how state associations work for you. BY C H E RY L L L A M B R I G H T G ather around auto recyclers and let me tell you a story about a recycling fairy tale that came true! This story is full of lies, cheating, coverups, bad dudes, heroes, and TDLR. Oh my, can that be true? It all started with a simple complaint from one of our story’s heroes, a Texas Automotive Recycler Association (TARA) member. Our hero sent a complaint to TARA to file with the Texas Department of Licensing and Regulation (TDLR) that pointed out that a bad dude was in the neighborhood. This bad dude (BD) was running a business that strongly resembled a Used Automotive Parts Recycler (UAPR), but low and behold, he did not have a license to operate this business. (Heard this one before?) BD had a sign on the street and ads on the Internet and in the yellow pages, but no TDLR license. How could it be, then, that BD advertised and sold used automotive parts? Our TARA hero was determined that this should not be. The complaint was sent to TARA and filed with the TDLR, and we twiddled our thumbs for a while waiting for the BD to get a kick in the pants. The TARA hero kept asking, “Why are they not doing something?” And, just when it seemed that all was lost – as it does in most fairy tales – the superhero, Mike Shirk (MS) from the TDLR enforcement department, swooped in to save the day. Superhero MS contacted TARA and said, “I am going to take BD down.” He immediately leapt into action and gave the BD notice that he would be shut down by a certain date if he did not have a license. Of course, that date came and went, and BD still did not have the license. Then, superhero MS issued a cease and desist order and, after many battles, BD said he would shut his gates and would obtain the required license. Could it be our happy ending? Not so. Our TARA hero did not believe all was well and checked to see if BD was really closed. Not surprised, he found that BD was still selling used parts behind the closed gates. When customers would call BD for a part, he would tell them to come to the gate, honk, and the part would be brought out to them. TARA even called BD to request a part to verify this was happening. So superhero MS came to the rescue again, adding more fines on BD. After bringing in the big guns, fining him a lot of money per day until he got the license, BD’s gates were shut and all was well. In the end, BD paid hefty fines, now has a license, and everyone is happy. TDLR did their job. TARA hero did his job. It felt really great to be part of the story and see what can happen when people take action working together. This is just one story of many on how your state associations fight for you. Become a part of one and make a difference in your state! ■ Cheryll Lambright is the Executive Director of the Texas Automotive Recyclers Association. November-December 2013 | Automotive Recycling 45 MEMBER HIGHLIGHT On TopDown Under ARA Member Honored for Excellence B usiness and community leader and long-time ARA member Lawrie Beacham, director of Jeeepart Recyclers, Hervey Bay Australia, has been described as one of the most well respected people in the Australian auto parts recycling industry. Lawrie was presented with the prestigious Bob Scott Memorial Award for outstanding industry contribution during the Auto Parts Recyclers Association of Australia (APRAA) conference and trade show in Sydney which attracted delegates from the Australian and New Zealand auto parts recycling industry and after-market supply firms. The presentation was made by Peter Scott, son of Bob Scott, who established Scott’s Parts Plus, at Dubbo, New South Wales in 1951. Bob passed away in 1983. Peter was successful in staging, at Dubbo, APRAA’s first regional conference in 1992 and the record 350 delegates responded by setting up the trophy in memory of his father, a leading industry The Beacham family proudly show off the trophies awarded at the APRAA conference. Lawrie (Center) and his wife Joy and sons Zane and Shannon are closely involved in all sections of the Hervey Bay business. 46 Automotive Recycling | November-December 2013 figure. The perpetual trophy is based on a Rolls Royce hub cap. Jeeepart Recyclers, one of Australia’s leading Jeep, Chrysler and Dodge specialist parts firm, also received APRAA’s conference award for “Excellent and Professional Business Practice.” The award states that regardless of size, many recycling firms operate successfully and efficiently, making a positive impact on their surrounding community. “I was very proud to accept the APRAA award and the memorial trophy on behalf of our family and staff,” Lawrie said. Lawrie is no stranger to APRAA, having helped and the industry body to other states after the association was established in N.S.W. 30 years ago. Lawrie has staunchly advocated industry standards and changes to motor industry rules, including recent regulations on the handling of flood-damaged and written-off vehicles. With a grassroots start in all-brand vehicle dismantling in Bendigo, Victoria 40 years ago, Lawrie is now recognized as an authority in the business, marked personally by an extraordinary memory for a range of vehicle makes and parts. “I have known Lawrie for 30 years,” Scott told the conference. “He is an affable character who is approachable and welcoming to everyone he meets. Apart from his excellent people skills, he is also one of the most experienced, successful and capable automotive recyclers in Australia. His firms have been at the forefront of innovation in the dismantling and recycling industry for more than 40 years. Lawrie is a genuine industry leader, being involved in APRAA since its inception. “He has given countless hours to APRAA – serving on many committees, a stint as Victorian delegate and National President, as well as serving as the ARA representative for Region 14 (Pacific Rim) for 4 years and was elected again for 2013-14. “Lawrie’s commitment to APRAA was borne out of a concern for the reputation of auto recyclers and a desire to see the industry progress and flourish in an ethical and professional environment. The status our industry now enjoys, connecting and working with other automotive and government bodies, can be attributed to the dedication and hard work of people such as Lawrie,” Scott said. He told the conference Lawrie was just as passionate about his local community, contributing to many fundraising events, projects, and committees, with most of this work reflecting his three decades of Rotary service. At his own expense, Lawrie joined other Rotarians overseas to assist communities in building an infrastructure in the Solomon Islands and Nepal; he has also given his time and opened his home to numerous exchange students. Lawrie said, “Our firm has been recycling Jeep, Chrysler, and Dodge automotive parts for the past 16 years and, in recent times, thanks to a combination of experience, marketing, and customer care, our business has surged ahead, against some national trends. “During my career, I have always been keen to emphasize the value of recycled parts, not just in terms of motorists saving money and the planet, but as a critical segment of the motoring cycle from new vehicles to scrap metal bound for overseas markets.” The firm supplies recycled, new, genuine and aftermarket parts, panels and accessories for most Jeep vehicles, including models from the 1960s through to current model Cherokee, Wrangler, Rubicon, Patriot, Commander, Compass, and Grand, Chrysler Voyager, Neon, PT Cruiser, 300C, Sebring, Crossfire along with the Dodge Nitro, Avenger, Caliber and Ram. Jeeepart Recyclers was one of the first to achieve the top Five Star status in APRAA’s National Accreditation Program, regarded as the most important advance by Australia’s auto recycling industry. The system grades auto recyclers on the quality and correct description of used or after-market parts plus business and staff presentation, staff training, complaint handling, warranty and refund policies, condition of sale, delivery, safety requirements and environmental aspects. ■ November-December 2013 | Automotive Recycling 47 SPOTLIGHT ON EXCELLENCE Wilbert’s Premium Recycled Parts In the Growing Business This family business is dedicated to growing with excellence, but their secret to success is all about building community. B Y LY N N N O V E L L I 48 Automotive Recycling | November-December 2013 Y ou could say that Wilbert’s Premium Recycled Parts went “green” more than 50 years ago. That’s how long three generations of the Wilbert family has owned an auto recycling business and the Christmas tree business next door. Auto recycling is the core family business, with two full-service, ARA Gold Seal-certified facilities in Webster and Ontario, N.Y. and a self-service yard in Williamston, N.Y. The Christmas tree business, brothers Pete, Rick and Ron contend, “is more like a hobby.” The Wilbert family’s “hobby” shifts into high gear around this time every year. From the weekend before Thanksgiving until Christmas, Wilbert’s Tree Farm sells thousands of live, fresh-cut Christmas trees each year. A Tree-dition The way the brothers tell the story, the Christmas tree business got started by accident. “Back in the 60’s, Dad put up a chain link fence to keep the deer out of his recycling yard,” Rick starts the story. “Next he put up one of those bamboo fences to screen it, but he wasn’t happy with how it looked.” Older brother Pete takes up the tale. “Then one year, he planted rows of evergreen trees to provide a more attractive screen. They grew, and people passing by noticed and would stop in to ask him if he would sell them a Christmas tree.” Sensing a business opportunity, Art Wilbert planted 20 acres of Christmas trees, and Wilbert’s Tree Farm was born. “Dad loved the land,” Ron, the youngest of the three brothers, says. “He bought the farm next door, then the farm next door to that. He kept buying more land.” And planting more trees. Today, more than 180,000 Christmas trees in various stages of growth cover more than 100 acres. For local families, buying a tree at Wilbert’s is what the brothers like to call a “tree-dition.” More than just a trek through the woods to chop down a tree, it is an experience. A giant candy cane creates the perfect spot for a picture. The Wilbert’s live nativity scene is renowned throughout the region. Santa cruises in for a visit at the wheel of a self-powered sleigh. For the Wilberts, including the three brothers, their two sisters, and their extended family, the tree farm has become a platform for community service. They donate a portion of the proceeds to the town each year, they give trees to needy families as well as other auto recyclers in the area, and they participate in Trees for Troops. In 2012, they invited the police department’s child identity team to set up their trailer at the Christmas lot. The thousands of happy families who roam the tree farm every Christmas season, searching for the perfect November-December 2013 | Automotive Recycling 49 SPOTLIGHT ON EXCELLENCE tree, never see the labor that goes into it the other 10 months of the year. Last year the Wilbert brothers planted 26,000 seedlings. Then there’s the spraying, mowing and a myriad of other chores involved in nurturing the trees. During the brief selling season, the whole family pitches in. Wilbert’s provides Santa with Work Hard, Together all kinds of cool cars to cruise Art Wilbert, who passed away in around town. 2007, instilled the value of hard work in his children early in their mary customer base is lives. “Our house was across the body shops, dealers and street from the business so Dad repair shops, Wilbert’s knew when we got off the bus, and tire and wheel division is we knew it was in our best interest heavily retail-focused. to get our butts over there,” Pete To meet their cusrecalls. Dad was a great teacher tomers’ needs, the Wiland transferred his skills in recyberts are high-volume cling and repairing to all of us.” salvage buyers through “Our customers are the bosses Art gave the boys the opportuCopart and IAA aucnity to make their own money by tions, purchasing 130 to because they dictate whether straightening damaged bumpers 140 vehicles a month. we are going to be in business.” discarded by body shops. They They also purchase in— Rick Wilbert worked many evenings and weekventory from dealers. ends to earn their own cash. “We learned early on that everything has value,” Pete adds. Embracing Change Pete, Rick and Ron are not afraid to make a bold Started from Seedlings change if they believe it will help them serve their cusIn 1952, Art Wilbert started by turning his part-time tomers better. By networking with other recyclers and car hobby into a full-time business, rebuilding Buicks being active in ARANY and ARA, “We try to stay in the and selling extra parts to area dealerships. “Rebuilding forefront of what’s going on,” Rick says. cars continued to be a big part of the business through In 2002, this approach led to the Wilberts becomthe 60’s and 70’s until changes in title laws brought ing founding members of the PRP Northeast Group, an abrupt end to that,” Pete says. Almost simultanea decision that fundamentally changed their business ously, the 1970s gas crunch sounded the death knell model. ‘With the availability of parts in our group and for the big Buicks that were the core of Art’s business, our GM customer base shrinking, we decided to no and Wilbert’s transitioned to GM vehicles and parts. longer limit ourselves to GM,” Ron explains. “Dad was ahead of everyone,” Pete recalls. “He As a result, in 2004 they purchased the Ontario locajoined ARA early on and was in ARANY when it was tion to service other brands. “We were so renowned started.” for our GM yard that it was simpler to purchase anothBy 1980, when the auto recycling business purer yard than to try to re-educate our customers,” Ron chased its first computer, Art was ready to shift out of explains. the auto recycling side of the business and focus on Supported by the PRP-Northeast Group’s focus on the Christmas tree business that he loved. Pete and quality and service, Wilbert’s has grown “beyond all Ron took over the recycling business, to be joined a expectations,” he says. “I would never have believed few years later by Rick. ten years ago that quality control would be our largest Today, the 15-acre Webster, NY, yard still specializes department – we didn’t even have a QC department.” in late-model GM vehicles, while the Ontario location Under Ron’s presidency, the Northeast Group covers all other brands. Together, both facilities implemented overnight distribution of brokered process 4,000 to 5,000 vehicles a year. Although the priparts from a centralized hub in Binghamton. “That 50 Automotive Recycling | November-December 2013 Wilbert’s Best Practices • Embrace change, if it has the potential to improve your business. • Work hard, but work smart. • Make honesty, quality and service your priorities. • Treat your employees with respect and dignity. gave us the inventory of almost 20 yards that could be delivered to customers just like it was on our shelf,” Ron says. Membership in the Northeast Group generated excitement that extended to the Wilbert family’s third generation. In 2010, following a Northeast Group training meeting at a recently renovated yard, the younger family members put their heads together with key sales staff. Two days later, the Wilbert 20somethings presented their dads with a list of improvements that they wanted to make, promising to work weekends and evenings to accomplish their goals. It was a defining experience for the family business. “They went at it, assisted by employees who caught their enthusiasm and energy,” Pete recalls. “Production and sales increased and even more importantly, it created a team spirit that will continue through the next generation.” Get Organized In 2008 the brothers began exploring another potential business opportunity in the form of a rundown yard with a great location. After two years of cleanup and three years of construction, they opened Wilbert’s U-Pull-It in late 2013. The self-service operation, managed by Ron, his wife Kathy, and son Eric, strives to be the cleanest and November-December 2013 | Automotive Recycling 51 SPOTLIGHT ON EXCELLENCE greenest self-service facility in the region. “We’re employees enjoy a generous benefit plan, including a finicky about the cleanliness of our yards,” Ron says, 401k and bonus sharing. As a result of their promoteadding that their father was a two-time winner of the from-within policy, Wilbert’s is home to the top parts ARA Beautification Award. salesman in the country, a man who started with them The brothers are equally finicky about maintaining while in high school 15 years ago. an organized inventory to maximize productivity. They The Wilbert’s employee team includes Ron’s sons take organization to the max through their computEric, Aaron, and Daniel; Pete’s son Kevin and Rick’s erized inventory system. “Dad daughter, Melanie, as full-time might think I went too far, employees. Other family memthough, when I pinned the “We’re finicky about the cleanliness bers help out in any area when location of every car at the Uneeded. of our yards,” Ron says, adding that Pull-It,” Ron adds. Having grown up in the their father was a two-time winner business, Ron, Rick, and Pete Value Your Employees of the ARA Beautification Award. can – and sometimes do – perSince assuming ownership form any job in the yard. One of the business after their of them arrives at 4 a.m. with father’s death, the brothers have expanded the work the first employees, everyone is present for the 6:45 force from 25 to approximately 70 employees. They a.m. production meeting, and another brother stays consider their employees one of the company’s most late to wrap up the day’s business. valuable assets and strive to retain them by following “To succeed, you have to be willing to lead by examthree simple principles: treat them right, promote ple,” Rick says. “Or as Dad would say – lead, follow, or from within and communicate with everyone. get the hell out of the way.” ■ Wilbert’s boasts many long-time employees, and all Lynn Novelli is a freelance writer based in Ohio.. 52 Automotive Recycling | November-December 2013 International Auto Recycling Reports from Around the World Title Canadian Environmental By Frontier Final the Switch Out Mercury Recovery Program; and the development and deployment of the Canadian Auto Recyclers Environmental Code. ELVs in the North fills a strategic gap we have in working with all levels of federal, provincial and territorial governments to document the benefits of a licensed auto recycling industry.” By Steve Fletcher, Managing Director of ARC veryone worked hard to make our E T convention in Kansas City a success, including he Automotive but not limited Recyclers to of theCanada events advisory (ARC) committee, recently announced the meeting the sponplanner, andoftheanstaff. sorship end-of-life All are management commended for a in study jobthewell Canadian done. Far TheNorth. committee ARC meetings hopes to offer seminars, best practices tradeshow, and barbeq experience It’s tohard handling to the believe vehicles myinterm the fragas President ile northern has environment. begun. Seems Thislike region only is yesterday one of thethat last strategic I was elected hold-upstofor thea Executive Committee pan-Canadian automotive andrecycling had the stanrealizationlinked dard that I to would a license. be theARC first woman will be presidentclosely working to have withthe Summerhill, same honor a comand privilege pany dedicated as my father to designing (Norm Dulaney) product did when heprograms, stewardship was President including of NATWA end-of(now life disposal ARA) programs. in 1969-70. I have had the opportunity Since 2000, to know Summerhill some ofImpact, the mosta professionaland knowledge recyclers engagement over the leader, years while has up to all unparalleled provided of us to participate. programIt’s manageOUR ARA. and confidence because of their ment extensive subject matter knowledge and experience in energy efficiency and product stewardship. Their purpose is to make a positive environmental impact with consumers, and to help clients achieve and to further consumer engagement and impact. Operation Clean Up Summerhill is launching the new ARCsponsored program, an end-of-life vehicle waste diversion program in the Canadian North, in cooperation with funding from the government of Canada’s Eco-Action fund. Summerhill will be working with community based organizations within Nunavut; territorial government representatives; Gerdau Ameristeel; and vehicle recyclers, in collaboration with the Automotive Recyclers of Canada, to provide training, enhance capacity and develop a model for materials recovery that provides an economic benefit to community, while clearing the land, water and air of harmful toxins and waste. Program Goals Smart environmental management of ELVs in the Canadian Far North is underway. Their plan is to commence the stakeholder engagement and training in the winter of 2013 with the intent to remove substantial volume of de-commissioned vehicle waste in spring/summer of 2014. Teamwork Makes Great Work The Canadian Council of Ministers of the Environment (CCME) has been reviewing ARC’s White Paper, “A National Approach to the Environmental Management of End-of-life Vehicles in Canada.” One of the gaps in the analysis is the impact on Canada’s vast Far North. The ELV in the North project will help fill in those information gaps and further ARC’s goal of achieving a national licensed environment for progressive auto recyclers. Steve Fletcher, ARC Managing Director, states, “Working with Summerhill Impact is a natural for ARC. We collaborated with them on Retire Your Ride – the National Vehicle Scrappage Program; The End-of-Life Vehicle Waste Diversion Program in the Canadian North is a program designed to engage, educate and employ local community members in end-of-life vehicle (ELV) waste diversion from the remote communities of Cape Dorset, Whale Cove and Rankin Inlet. The main goal of this project is to prevent harmful potential pollutants in ELVs from contaminating local water resources through empowering community members, improving their capacity for pollution-prevention and enabling them to take action alongside industry professionals. A secondary goal of this project is to see to the recovery of ELVs from communities that currently have no resources to have them transported to recycling facilities. Doing so will relieve pressure on local dumpsites, restore tracts of nature adjacent to each community and recover valuable recyclable resources. In addition to engaging and increasing capacity within these Northern communities, this project will also advance knowledge around end-of-life vehicle management in remote regions of Canada, which is an area of priority for the Canadian Council of Ministers of the Environment (CCME) working group on end-of-life vehicle management. This project will result in the protection of water resources, the development of local capacity, and the development of data to prove concepts for sustainable ELV recovery in Northern Canada. ■ November-December 2013 | Automotive Recycling 53 International Auto Recycling Reports from Around the World End of an Era By Andy Latham It is the people that make the difference, and I have had the pleasure of working with some of the best leaders who constantly push the boundaries to work better, faster and more efficiently. A viva announced in July that they were closing their wholly-owned motor salvage subsidiary, Bluecycle, and outsourcing the contract for disposal of motor salvage to Copart. Bluecycle held its final salvage auctions in September and the business will then be shut down. The knock on effects for staff and contractors are massive, as all Bluecycle staff lost their jobs and contractors are having to adjust their own staffing levels, in some cases closing some of their yards, and in one case closing their business completely. 54 Automotive Recycling | November-December 2013 For over 13 years, Bluecycle has been a major player in the motor salvage marketplace in the UK and Europe. When they entered the UK market, they turned procurement of auto salvage upside down by being the first to complete all auctions and sales online. Previously, customers had to travel to physical auctions to purchase stock – now they can sit in their office, and avoid the time and cost of traveling around the countryside. On one memorable occasion, I was with a customer when a transporter arrived to deliver a vehicle to this customer’s location and no one in the business knew about this delivery. They couldn’t even find out who had placed the bid. It later transpired that the company chairman was sitting on his yacht in the Mediterranean Sea and had logged onto Bluecycle via his satellite phone, won the auction, arranged the delivery, and promptly forgot to tell his staff what he had done! Bluecycle was originally formed with the idea of selling stolen property that had been recovered by the police (hence the Blue in the name), but quickly found that vehicle sales were profitable and far easier to deal with, so this became the main focus of the company. I joined the company shortly after this decision had been made and have over 12 years service with Bluecycle. As with many jobs, it is the people that make the difference, and I have had the pleasure of working with some of the best – leaders who moved onwards and upwards within Aviva, customers who lead the industry, and contractors (such as Ian Hill – ARA member of the year 2012) – who constantly push the boundaries to work better, faster and more efficiently. I have been to places in the UK, Europe, and the U.S. that I would never have been able to otherwise, where I met some fantastic colleagues, and found a love and passion for this industry that I have never felt for any other industry I have worked in. The impact that the decision to close Bluecycle will have on the UK motor salvage marketplace is yet to be seen, Copart is getting close to a monopoly on insurance total loss contracts and this could result in higher costs for auto recyclers looking to purchase stock and possibly lower returns for insurers. Time will tell if Aviva’s decision to close as Copart’s biggest competitor in the UK was the right decision. It is truly the end of an era; I am proud to have been part of Bluecycle and can look back with satisfaction at the market-leading achievements, the success and the professionalism of Bluecycle. ■ Andy Latham is the Managing Director of Salvage Wire, a unique Auto Recycling and Motor Salvage Consultancy that helps businesses be safe, ethical and profitable. See more at www.salvagewire.com. Certified News Approved Gold Seal Participants Company Name A & P Auto Parts, Inc. A-1 Auto Recyclers AAA Auto Salvage, Inc. ABC Auto Parts & Sales, Inc. Albuquerque Foreign Auto Parts Algar, Inc. dba Grade A Auto Parts All Auto Parts Co. All Foreign & Domestic Used Auto Parts, Inc. Al's Auto Parts, Inc. American and Import Auto Parts American Auto Recycling Automotive Parts Solutions B & B Auto Parts & Salvage, Inc. B & B Auto Salvage, Inc. - PRP B & M Auto Sales & Parts, Inc. B & R Auto Wrecking B Auto Parts Badger Motors Baird's Auto Parts, Inc. Bay Auto Parts Bessler Auto Parts Bionic Auto Parts & Sales, Inc. Bishop's Used Auto Parts, Inc. Blenkhorn's Auto Recyclers, Ltd. Bow Auto Salvage, Inc. Brothers Auto Salvage Yard, Inc. Brown's Auto Salvage Butler Auto Recycling, Inc. BW Auto Dismantlers, Inc. C & H Salvage Corp. Calumet Auto Salvage, Inc. Carcone's Auto Recycling Central Auto Recycling, Inc. Centre De Recyclage Universel (1981) Ltee. Chuck's Auto Salvage, Inc. Cocoa Auto Salvage, Inc. Columbia Auto Parts County Line Auto Parts Cousineau Auto Parts, Inc. D. A. Auto Parts, Ltd. Decatur Auto Parts, Inc. Denton County Auto Salvage Diamond Auto Parts Don's Automotive Mall, Inc. Eiss Brothers Auto Parts, Inc. Elmer's Auto, Inc. Erie Vo-Vo, Inc. Foreign Auto Salvage Fox Auto Parts, Inc. G & R Auto Parts, Inc. Goyette's, Inc. Grassy Auto Parts, Inc. Grimes Truck & Auto Parts, LLC H & H Auto Parts & Salvage, Inc. Hanser's Automotive & Wrecker Company Hickman Motors, Inc. Highway 54 Salvage, Inc. J & R Truck Parts J.C. Auto & Truck Parts Jantz's Yard 4 Automotive, Inc. Jerry Brown Auto Parts Center, Ltd. Jerry Carney & Sons, Inc. Junior Sinn Auto Parts, LLC Kadinger's II Kadinger's, Inc. Kadinger's, Inc. Kelly Auto Parts Kirchhayn Auto Salvage, Inc. Kosiski Auto Parts, Inc. Lacy Auto Parts, Inc. LKQ Advanced Auto Recycling City State Cicero Rapid City Rosemount Riverdale Albuquerque Louisville Fontana Columbus Trevose Sterling Heights Gilbert St. Cloud Oklahoma City Rapid City Waukesha Corvallis East St. Louis Wisconsin Rapids Fairdale Green Bay Wilder Chicago Middletown Brookside Bow Indianapolis Bomoseen Pensacola Roseville Campbell Hall Milwaukee Aurora Syracuse Val D'Or Douglassville Cocoa W. Columbia Kingsville Weston Dumfries Decatur Denton Fond Du Lac Binghamton Watertown Fountain City Whitesboro Ft. Wright Belleville Oklahoma City New Bedford West Liberty Grand Prairie Sussex Billings Hickman Trenton Cedar Springs Monroe City Kenosha Queensbury Ames Cape Girardeau Barron Cadott Downing Faribault Cedarburg Omaha Charles City Cumberland NY SD MN IL NM KY CA OH PA MI AZ MN OK SD WI OR IL WI KY WI KY IL CT NS NH IN VT FL CA NY WI ON NY QC PA FL SC MO WI Scotland IL TX WI NY NY WI NY KY MI OK MA KY TX WI MT KY TN MI MO WI NY IA MO WI WI WI MN WI NE VA RI Country CAN CAN GBR Company Name LKQ Auto Parts of Central Texas LKQ Auto Parts of North Texas, LP LKQ Auto Parts of South Texas LKQ Canadian Auto Parts Inc. -Ste. Sophie LKQ Four States LKQ John's Auto Parts LKQ Midwest Auto Parts LKQ of Michigan, Inc. LKQ of Nevada, Inc. LKQ of New Mexico LKQ of Southern California LKQ Pick Your Part/Car World LKQ Potomac German Auto LKQ Preferred LKQ Smart Parts, Inc. LKQ Star Auto Parts, Inc. LKQ Triplett ASAP, Inc. LKQ Viking Auto Salvage LKQ West Michigan Logel's Auto Parts M & M Auto Parts, Inc. Metro Auto Recyclers Midway Auto Parts, Inc. Miller's Auto Recycling (1992), Ltd. Mitchells Auto Parts dba Chuck & Eddies Used Auto Parts Morris Rose Auto Parts, Inc. Morrisons Auto, Inc. Mott Auto, Inc. Mr. R's Auto Salvage Nordstrom's Automotive, Inc. Northwest Auto Parts Olston's Auto Recyclers Pam's Auto, Inc. Parts Unlimited, Inc. Peacock Auto Salvage, Inc. Pete's Auto & Truck Parts, Inc. Remington Auto Salvage, Inc. Rhine Auto, Inc. Rhodes Auto S/S/S, Inc. Ridge Road Auto Parts Riteway Auto Parts, Inc. Robertson's Auto Salvage, Inc. Rockford Auto Parts, Inc. Sandhill Auto Salvage, LLC Schram Auto Parts Sharp Auto Parts, LLC Shroyer's Auto Parts Snyder's Recycled Auto and Truck Parts Sonshine Auto Parts Spalding Auto Parts, Inc. Speedway Auto, Ltd. St. James Auto & Truck Parts, LLC Stadium Auto & Truck Parts, Inc. Stafford's, Inc. Standard Auto Wreckers Stoystown Auto Wreckers Stricker Brothers, Inc. Tolpa's Auto Parts Tom's Foreign Auto Parts Toomer Enterprises, LLC dba Doggett Auto Parts Trails End Auto and Truck Salvage, Inc. Walt's Auto, Inc. Waterloo Auto Parts, Inc. Wayne Auto Salvage, Inc. Weller Auto Parts, Inc. West Side Auto Parts, Inc. Wilbert's, Inc. Woodfin Honda / Pick and Save Yancey Auto Salvage Y-Yard Auto & Truck, Inc. City State New Braunfels Hutchins Houston Ste. Sophie Joplin Blaine Omaha Wayne North Las Vegas Albuquerque Santa Fe Springs Candia Frederick Conway Hustisford Janesville Akron Northfield Holland Kitchener Stafford Valparaiso Kansas City Fort Erie TX TX TX QC MO MN NE MI NV NM CA NH MD AR WI WI OH MN MI ON VA IN MO ON Plantsville Kalamazoo Edgerton Lebanon Buffalo Garretson Anchorage Lincoln St. Cloud Pearland Macon Jenison Eau Claire Plymouth Streator Cleveland Phoenix Wareham Rockford Tama Waterford Stillwater Lansing Holland Cumberland Spokane Joliet St. James Denver Montgomery Toronto Stoystown Batavia Remsen Waterbury Bryan Des Moines Springfield Waterloo Goldsboro Grand Rapids Laurel Webster Midlothian Perry Effingham CT MI WI MO WY SD AK NE MN TX GA MI WI WI IL OH AZ MA IL IA MI MN MI TX ON WA IL MO CO IL ON PA OH NY CT TX IA OH IA NC MI DE NY VA MO IL Country CAN CAN CAN CAN November-December 2013 | Automotive Recycling 55 Certified News Approved Certified Auto Recycler Participants Company Name 43 Auto Salvage A & A Auto and Truck Parts, Inc A & A Auto and Truck Parts, Inc. (North) A & C Auto Parts & Wrecking Co. A & L Auto Recyclers, Inc. A & T Auto Parts, Inc. AAAACO Auto Parts, Inc. AADCO Auto Parts Aadlen Bros Auto Wrecking Ace Auto Recyclers, Inc. Action Auto Parts, Inc. All Car & Truck Recycling All Foreign Used Auto Parts, Inc. Alliance Auto Parts Allwest Auto Parts, Inc. Alvin's Automotive Recycling American Auto Parts Arnprior and Ottawa Auto Parts Auto Parts City, Inc. B & B Towing & Auto Recycling B & M Cars & Salvage B.O.S. Auto Parts Bauer's Auto Wrecking Bell City Auto Center, Inc. Bill's Used Parts, Inc. Black Gold Import Auto Parts Borges Foreign Auto Parts, Inc. Bowie Used Auto Parts, Inc. Brandywine Auto Parts, Inc. Brandywine Truck Parts Brandywine Two, Inc. Brooks Auto Sales, Inc. Bruce Auto Parts, Inc. Cambridge Auto Parts and Wreckers Company, Ltd. Camp Auto Salvage Canadian Auto Recycling Central Small Car Salvage Central Truxx North Bay Clayton Auto Parts & Wrecking, Inc. Colorado Auto & Parts, Inc. Compact Auto Parts Cookstown Auto Centre, Ltd. Cosmos Ocean County Recycled Auto Parts Cosner Brothers Auto Parts, Inc. Counselman Automotive Recycling, LLC Cousineau Auto, Inc. Covey's Auto Recyclers, Ltd. Danny's Auto Salvage, Inc. Denison Auto Parts, Inc. D-N-J Auto Parts Dom's Auto Parts Co., Ltd. Don Scharf Automotive, Inc. Doug's Auto Recyclers, Inc. Dulaney Auto and Truck Parts of Amarillo, Inc. Duval Auto Parts East Bay Auto Parts, Inc. Economy Auto Parts Eden Used Auto Parts, Inc. Ed's Auto Salvage, Ltd. Elgin Super Auto Parts and Sales, Inc. Fireside's U-Pull It Auto Parts Five J's Auto Parts, Inc. Foreign Car Parts, Inc. Gary's U-Pull-It, Inc. Geiger Truck Parts, Inc. Glenn's Auto & Truck Parts Green Point Auto Parts, Inc. Harry's Auto Wrecking Higgins Auto Parts Hillsboro Auto Wrecking Hilltop Auto Wreckers, Ltd. Hi-way Auto Parts Hi-Way Auto, Inc. Horsehead's Automotive Recycling Hovis Inc. dba Patterson Auto Wrecking I-55 Auto Salvage City State Joplin Topeka Topeka Cleveland Comber Hyde Park Lorton Brampton Sun Valley Iowa City Marshalltown Anderson Fredericksburg Woodside Edmonton Oakland Omaha Arnprior Gurnee Englishtown Sulphur Springs Windsor Fresno Brantford Christiansburg Nisku Dighton Bowie Brandywine Brandywine Brandywine Oilville Mechanicsville Cambridge Barberton Mount Pearl Brandywine ON Clayton Englewood Brandywine Cookstown Bayville Troy Mobile Antigo Blandford Tulsa Cleveland Owensboro Courtice Eagle River Coldwater Amarillo Forest Interlochen Tulsa Eden Westlock Elgin Sandusky Albuquerque Upper Marlboro Binghamton Watseka Houston Brewer Grande Prairie Bakersfield Hillsboro Richmond Hill Tyler Brownwood Elmira Cochranton Channahon MO KS KS OH ON NY VA ON CA IA IA CA VA NY AB CA NE ON IL NJ TX ON CA ON VA AB MA MD MD MD MD VA VA ON OH NF MD CAN OH CO MD ON NJ VA AL WI NS OK OH KY ON WI MI TX VA MI OK MD AB IL OH NM MD NY IL TX ME AB CA OR ON TX TX NY PA IL 56 Automotive Recycling | November-December 2013 Country CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN Company Name J & J Auto Wrecking, Inc. Jeff Smid Auto, Inc. Jerry's Auto Salvage, Inc. Keiffer Auto Recyclers Keith Auto Recyclers LLC dba KARS Kenny U-Pull Knox Auto Parts & Rebuildable Wrecks Leesville Auto Wreckers, Inc. Lems Auto Recyclers, Inc. Lentini Auto Salvage, Inc. Lewisville Motor Company, Inc. Linder's, Inc. LKQ - Barber's Auto Sales LKQ 250 Auto, Inc. LKQ A & R Auto Parts, Inc. LKQ A Reliable U Pull It South LKQ Arizona (aka: LKQ All Models Corp.) LKQ Atlanta, LP LKQ Barger Auto Parts Nampa LKQ Birmingham, Inc. LKQ Brad's Auto & Truck Parts, Inc. LKQ Broadway Auto Parts, Inc. LKQ Copher Self Service Auto Parts - Bradenton, Inc. LKQ Copher Self Service Auto Parts - Clearwater, Inc. LKQ Copher Self Service Auto Parts - St. Petersburg, Inc. LKQ Copher Self Service Auto Parts - Tampa, Inc. LKQ Crystal River, Inc. LKQ Dominion Auto Recycling, Inc. LKQ Foster Auto Parts of Salem LKQ Foster Auto Parts, Inc. LKQ Gorham Auto Parts Corp. LKQ GreenLeaf - Dallas LKQ GreenLeaf - Fort Worth LKQ GreenLeaf - Kennedale LKQ GreenLeaf - Seguin LKQ Hunts Point Auto Parts Corp. LKQ M. Robert, Inc. LKQ Melbourne LKQ Mid-America Auto Parts, Inc. LKQ Minnesota, Inc. LKQ Northern California (Redding) LKQ of Central California LKQ of Ft. Myers LKQ of Indiana, Inc. LKQ of Northwest Arkansas dba LKQ Mid-America LKQ of Tennessee LKQ Penn-Mar, Inc. LKQ Pick Your Part Anaheim LKQ Pick Your Part Bakersfield LKQ Pick Your Part Chula Vista LKQ Pick Your Part Gainesville LKQ Pick Your Part Help Your Self LKQ Pick Your Part Stanton LKQ Pick Your Part Sun Valley LKQ Pick Your Part Wilmington LKQ Pintendre Autos, Inc. LKQ Potomac German LKQ Pull n Save Auto Parts of Aurora, LLC LKQ Route 16 Used Auto Parts LKQ Salisbury, Inc. LKQ Savannah, Inc. LKQ Self Service Auto Parts - Holland LKQ Self Service Auto Parts - Kalamazoo, Inc. LKQ Self Service Daytona LKQ Self Service Memphis LKQ Utah Manuel's Auto Wrecking Marco Auto Recycling, Inc. Maritime Auto Salvage, Ltd. Marshall Auto Wreckers, Ltd. Massey's Auto Parts, Inc. McDill Auto Wrecking, Inc. Metro Auto Salvage, Inc. Mid Island Auto Wreckers, Inc. Middleton Auto Parts Milliron Auto Parts, Inc. City State Marshallville Davenport Big Lake Canton Pontotoc Laval Knoxville Rahway Doon Ringoes Winston-Salem Worcester Ardmore Harrisville Duncan Blue Island Phoenix Jenkinsburg Nampa Traffon Redmond Stuyvesant Bradenton Clearwater St. Petersburg Tampa Crystal River Stoney Creek Salem Portland Gorham Dallas Haltom City Kennedale Seguin Bronx Sainte-Madeleine Melbourne Topeka Albert Lea Redding Bakersfield Ft. Myers Plainfield Fayetteville Manchester York Haven Anaheim Bakersfield Chula Vista Gainesville Wilmington Stanton Sun Valley Wilmington Pintendre Orlando Aurora Webster Salisbury Savannah Holland Kalamazoo Daytona Beach Memphis Salt Lake City Merced Red Wing Truro Lethbridge Millington Stevens Point Lakeville Deer Park Fraser Mansfield OH IA MN OH MS QC TN NJ IA NJ NC MA AL OH SC IL AZ GA ID AL OR NY FL FL FL FL FL ON OR OR ME TX TX TX TX NY QC FL KS MN CA CA FL IN AR TN PA CA CA CA FL CA CA CA CA QC FL CO MA NC GA MI MI FL TN UT CA MN NS AB TN WI MN NY MI OH Country CAN CAN CAN CAN CAN CAN Company Name Misgen Auto Parts, Inc. Newton Auto Salvage, Inc. Newville Auto Salvage, Inc. Nicklin Auto Parts and Recyclers Niks Auto Parts, Inc. Nissenbaum's Auto Parts, Inc. North Verde Auto Salvage Novak Auto Parts, Inc. Ole South Auto Salvage, Inc. P & C Auto Wrecking, Inc. Pacific Auto Salvage, Inc. Parkway Auto Recyclers Pat's Auto Salvage, LLC Pick-n-Pull - Cumberland Pick-n-Pull Auto Dismantlers - Calgary Pick-n-Pull Auto Dismantlers - Edmonton Pick-n-Pull Auto Dismantlers - Kelowna Poell's Enterprises, Inc. Popow & Sons Body Shop, Ltd. Premier Auto & Truck Parts, Inc. Pull-A-Part Akron Pull-A-Part Atlanta East Pull-A-Part Atlanta North Pull-A-Part Atlanta South Pull-A-Part Augusta Pull-A-Part Baton Rouge Pull-A-Part Birmingham Pull-A-Part Canton Pull-A-Part Charlotte Pull-A-Part Cleveland I (East) Pull-A-Part Cleveland II (West) Pull-A-Part Columbia Pull-A-Part Indianapolis Pull-A-Part Jackson Pull-A-Part Knoxville City State Ellendale Covington Edgerton Guelph Neenah Somerville Ontario New Brighton Lake Placid Milpitas American Canyon Kitchener Waterloo Cumberland Calgary Edmonton Kelowna Dewitt Lacombe Cedar Springs Akron Lithonia Norcross Conley Augusta Baton Rouge Birmingham Canton Charlotte Cleveland Cleveland Columbia Indianapolis Jackson Knoxville MN GA WI ON WI MA OR PA FL CA CA ON IA RI AB AB BC IA AB MI OH GA GA GA GA LA AL OH NC OH OH SC IN MS TN Country CAN CAN CAN CAN CAN CAN Company Name Pull-A-Part Lafayette Pull-A-Part Louisville Pull-A-Part Memphis Pull-A-Part Mobile Pull-A-Part Montgomery Pull-A-Part Nashville Pull-A-Part New Orleans West Pull-A-Part Winston-Salem Ransom Motors, Inc. Reitman Auto Parts & Sales, Inc. Rhinelander Auto Salvage Ripple's Service, Inc. Robert's Engines, Inc. Roberts Salvage, Inc. Rock & Roll Auto Recycling Rusty Acres Automotive, Inc. Salvage GM Parts of South Georgia, Inc. School Street Light Truck Parts Schram Auto & Truck Parts Lansing, Inc. Scotty's Auto Parts SGI Salvage Moose Jaw SGI Salvage North Battleford SGI Salvage Regina SGI Salvage Saskatoon SGI Salvage Yorkton Shipman Auto Parts, Inc. Smith Auto Parts & Sales, Inc. Snyder Auto Body & Paint Southern Maryland Used Auto Parts Sunscape Enterprises, Inc. dba Ace Auto Wreckers Swift's Auto Salvage, Inc. Van Horn Auto Parts, Inc. Vander Haag's, Inc. Vander Haag's, Inc. West Auto Wreckers, Ltd. City State Lafayette Louisville Memphis Mobile Montgomery Nashville New Orleans Winston-Salem Brandywine Melbourne Rhinelander Upper Marlboro Lucama Moffett Pleasanton Jacksonville Valdosta Lowell Mason Virginia Moose Jaw North Battleford Regina Saskatoon Yorkton Brainerd Fairfield Clarinda Mechanicsville E. Brunswick Des Moines Mason City Des Moines Spencer Chula Vista LA KY TN AL AL TN LA NC MD KY WI MD NC OK CA FL GA MA MI IL SK SK SK SK SK MN IA IA MD NJ IA IA IA IA CA Country CAN CAN CAN CAN CAN Online sales of industrial markers for auto salvage and auction • Permanent paint markers from $1.30 each • Steel tip pressurized markers for wet and oily metals • Removable markers for auto repair and dealerships Free Shipping for orders over $25 We accept Visa, MasterCard, and American Express Order online or toll free at 888-396-3848 November-December 2013 | Automotive Recycling 57 Capitol Connection Latest Legislative Updates from the Hill and Around the Country ARA Follows Up on 2013 Congressional Asks A RA staff continue to follow up with Congress on the 2013 Congressional Policy Objectives that were discussed during the ARA Annual Hill Day. The status of the 3 is as follows: Objective 1: Support federal legislation that would add a new section to the Clean Water Act (CWA) prohibiting the U.S. Environmental Protection Agency (EPA) and it’s State permitting authorities from applying numeric effluent limitations to industrial stormwater discharges, unless the Agency develops such limitations based on recognized scientific methods and promulgates them through the well established regulatory process. ARA is working with a Member of Congress who expressed interest in the issue after the meetings. Discussions are ongoing on potential actions. Objective 2: Support federal legislation that would require repairers to replace a deployed OEM airbag after a collision, with a non-deployed OEM airbag so that the inflatable restraint system is restored to its original operating condition. On the federal level, ARA has met with the Deputy Administrator and senior staff of the National Highway Traffic Safety Administration (NHTSA) and discussed the gravity of this issue and its implications for consumer safety. ARA is also exploring legislative opportunities and possible champions in both the U.S. House and Senate. On the state level, legislation targeting the sale, installation, import, and manufacture of counterfeit airbags has been introduced in several states and is now the subject of model legislation approved by the upcoming Council of State Governments conference. ARA actively worked with local automotive recyclers, affiliated state chapters, bill 58 Automotive Recycling | November-December 2013 The proposed Clean Water Act (CWA) regulation would require permittees and regulators to use existing, available information technology to electronically report information and data related to the NPDES permit program in lieu of filing written reports. sponsors and other stakeholders to support such initiatives and as a result, bills were signed into law over the summer in Connecticut and New York. ARA actively worked with ARANY to introduce a separate piece of legislation, Senate Bill 3779, that would have incorporated guidelines from the ARAPro Quality Control Inspection and Protocol and allowed for the sale and installation of recycled, non-deployed OEM airbags in the state of New York. ARA will continue to work with ARANY to build support for passage of the bill in the next legislative session. Objective 3: Support H.R. 763, The Jobs and Premium Protection Act, to repeal the health insurance tax (HIT) provision enacted as part of the Patient Protection and Affordable Care Act (PPACA – referred to as Obamacare). ARA has supported this legislation and continues to be an active participant of the Health Insurance Tax (HIT) Coalition, whose purpose is to build support for efforts to repeal the tax. ARA Works With National Association of Manufacturers on Recycling Policy Statement A RA is currently a member of the National Association of Manufacturers’ (NAM) first-ever Recycling Working Group. The group was recently established to discuss principles and language that will be included in a NAM Recycling Policy statement and position. Once completed, this policy document will provide NAM staff with “guiding principles” on recycling issues as they ARA to Comment on EPA Proposed Rule to Require Electronic Reporting for Permitted Facilities Under the Clean Water Act A RA plans to submit comments on the EPA’s proposed rule that would require electronic reporting for current paper-based National Pollutant Discharge Elimination System (NPDES) reports. The proposed Clean Water Act (CWA) regulation would require permittees and regulators to use existing, available information technology to electronically report information and data related to the NPDES permit program in lieu of filing written reports. This information includes: • Discharge monitoring reports; • Notices of intent to discharge in compliance with a general permit; and • Program reports. State Issues A RA and its affiliated state chapters are busy gearing up for the 2014 state legislative season, monitoring pre-filed legislation and bills carried over from the 2013 session that could have an impact on the operation of ARA member businesses. ARA members are busy reaching out to stakeholders and meeting with their elected officials in anticipation of another busy year. A summary of recent activity is below: curement of parts or materials illegal. The two bills, Assembly Bill 7234 and Senate Bill 5786, would add the prohibition to an existing statute governing insurance companies that makes it illegal for an insurer to require repairs be made at a particular repair shop. The bills have been referred Insurance Committees in the Assembly and Senate. ARA is actively monitoring bill developments and coordinating with its affiliated chapter, ARANY. Right to Repair The Council of State Governments’ Committee on Suggested State Legislation considered the issue of counterfeit airbags at their National Conference in late September. Up for discussion was a model law based on legislation passed in Connecticut over the summer that makes it a crime to manufacture, import, install, reinstall or sell a counterfeit or nonfunctional airbag. That law went into effect in Connecticut on October 1. Similar legislation also passed in New York this year and went into effect on November 1. ARA along with its affiliated state chapters in Connecticut and New York worked with bill sponsors and other stakeholders to secure passage of both pieces of legislation. Legislators in Ohio and Pennsylvania are currently considering their own counterfeit airbag bills. ARA expects more bills to be introduced on this issue in 2014. Right to Repair initiatives spread across the New England states this year, as legislation similar to the 2012 bill passed in Massachusetts was introduced in Maine, New York and New Jersey. State legislators and stakeholders on both sides of the issue adopted a wait-and-see approach as legislators in Massachusetts tried to resolve key differences between their 2012 bill and 2012 ballot referendum that resulted in two separate Right to Repair laws in the state. ARA staff has been actively coordinating with affiliated state chapters in New England throughout the year to monitor developments. ARA staff also met with stakeholders involved in the national Right to Repair efforts as discussions took place over the summer between auto manufacturers and several organizations active in last year’s Right to Repair Coalition. The groups hope to develop a national agreement based on the same framework as the legislation that passed in Massachusetts. Parts Procurement Salvage Acquisition State legislators in New York introduced legislation in late September in both houses of the legislature that would make insurance company requirements to use a specific vendor or process for the pro- Legislators in Ohio and Wisconsin continue to discuss their state’s salvage vehicle laws. Stakeholder meetings began earlier in the year and have continued on a regular basis. ■ Airbags develop in the U.S. Congress or within regulatory agencies and departments. The initial meeting included broadbased discussions reflecting NAM’s diverse membership, possible areas of consensus and the process towards their Board’s approval. ARA staff suggested, and it was agreed, that the statement should highlight the benefits of recycling to the environment, the consumer and the manufacturers. Over 45 companies and trades are represented in the NAM Working Group. ARA will continue to contribute the automotive recycling industry’s unique perspective and professional experience into the formulation of this policy statement. The group was recently established to discuss principles and language that will be included in a NAM Recycling Policy statement and position. U.S. House Committee Approves Regulatory Reform Legislation T he U.S. House Small Business Committee has approved an amended version of the bipartisan Regulatory Flexibility Improvements Act of 2013 (HR 2542), introduced by Committee Chairman Congressman Sam Graves (R-MO) that would require federal agencies to consider both the direct and indirect effects of regulations on small businesses. ARA has met with the Chairman and expressed the association’s support of the legislation as well as signed onto a letter from the National Association of Manufacturers that was sent to Representatives endorsing the bill. The Act would ensure careful consideration of the consequences of rulemaking on small businesses, including direct impacts, and require agencies to convene small business review panels. The legislation now must be considered by the full House of Representatives. ■ November-December 2013 | Automotive Recycling 59 Crossword Puzzle By Murray Jackson Across Down 1. It’s been called “America’s Sports Car” 5. Beast on Lamborghini emblem 9. Destination of “American Pie” Chevy 10. Engine output, in a way 11. Trucker slang for Milwaukee, ____ City 12. Car owners’ monthly obligations 14. Rock band’s tour-bus passenger 15. Certain turns 19. Big name in the tire biz 21. ’11 Nissan compact crossover model 23. Defunct Lincoln for a flyboy 24. Given name, car-company founder Citroen 25. Traction-enhancing tire-tread slit 26. Rolls-Royce rides, for some folks (3,5) 1. ’10 Dodge compact crossover 2. ’71 boat-tailed Buick 3. Stuntman Knievel’s first name 4. ’77 movie with homicidal vehicle (3,3) 6. Automotive about-face (1,4) 7. “The Spy Who Loved Me” star car 8. Carwash leather 13. ’10 Jeep SUV 16. Carmaker with an Accent 17. Oft-stolen dash items 18. A heavy highway hauler (3,3) 19. Items on wheels, sometimes 20. Jackrabbit-start tire noise 22. ’60-’76 Dodge model name 60 Automotive Recycling | November-December 2013 2013 Industry Calendar Ad Index NOW ACCEPTING 2014 CALENDAR EVENTS. AA Midwest...............................................................................42 ARA Annual Convention & Exposition ............................8 ARA University...................................................................25 Biz Unite. .............................................................................23 Brock Supply Co.................................................................37 Buddy Automotive Innovations ...........................................47 Car-Part.com ...................................................................C-4 Commercial Forms Recycler Supply .............................39 Company Wrench ..............................................................19 Connection, The ...................................................................5 CRUSH/S3 Software Solutions, LLC...............................57 Hollander, a Solera company.......................................C-3 Liland...................................................................................54 MarkingPenDepot.com.....................................................57 Multimetco..........................................................................51 NASCO-OP..........................................................................33 Panhandle Converters ......................................................15 Pemberton..................................................................................6 Pinnacle Professional............................................................44 RAS .......................................................................................17 SAS Forks ............................................................................21 SEDA.......................................................................................8 Sierra International Machinery .........................................13 SuperShear ...............................................................................51 Toyota Tsusho America ..........................................................11 United Recyclers Group .....................................................C-2 Vander Haag’s, Inc.............................................................61 Wells Fargo Business Insurance ...........................................9 SEND US YOUR DATES! Get Ahead in 2014 To advertise, contact Caryn Smith at (239) 225-6137 or e-mail [email protected]. To include your event in ARA’s calendar of events, e-mail the complete listing to [email protected]. Visit www.a-r-a.org for most up-to-date calendar. NOVEMBER MARCH 2014 25-26 28 - 29 OARA 2014 Convention & Trade Show Toronto Airport Marriott Hotel 1-800-905-2811 Quote the “Ontario Automotive Recyclers Association” to receive the group rate - subject to availability until March 14, 2014 European Aluminum Congress Dusseldorf, Germany ARA Legislative Committee DECEMBER 3-6 Pollutec 2013: Eco-Technology, Sustainability and Durable Development Paris, France E-mail [email protected]. Puzzle Answers from page 60 STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION 1. Publication Title: Automotive Recycling 2. Publication Number: 1058-9376 3. Filing Date: October 9, 2013 4. Issue Frequency: Bi-monthly 5. Number of Issues Published Annually: Six 6. Annual Subscription Price: $40.00 7. Complete Mailing Address of Known Office of Publication (not printer): Automotive Recyclers Association, 9113 Church St., Manassas, VA 20110-5456 8. Complete Mailing Address of Headquarters or General Business Office of Publisher (not printer): 9113 Church St., Manassas, VA 20110-5456 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher (Name and Complete Mailing Address) Michael E. Wilson, 9113 Church St., Manassas, VA 20110-5456; Editor (Name and Complete Mailing Address) Caryn Smith, 12901 Village Gate St., Ft. Myers, FL 33913 10. Owner: Automotive Recyclers Association, 9113 Church St., Manassas, VA 20110-5456 13. Publication Title: Automotive Recycling 14. Issue Date for Circulation Data Below: September 26, 2013 15. Extent and Nature of Circulation: Average No. Copies Each Issue During Preceding 12 months: a. total Number of Copies (net press run) 1500, b. Paid and/or Requested Circulation (Paid/Requested Outside-county Mail Subscriptions Slated on Form 3541) 1425, c. Total Paid and/or Requested Circulation: 1268, d. Free Distribution by Mail (Outside County as Slated on Form 3541): 50, e. Free Distribution Outside the Mail (carriers or other means): 150, f. Total Distribution: 1418, g. Copies not Distributed: 7, h. Total: 1425, i. Percent Paid and/or Requested Circulation: 89%. Actual No. Copies of Single Issue Published Nearest to Filing Date: a. Total Number of Copies (net press run) 1500, b. Paid and/or Requested Circulation (Paid/Requested Outside-county Mail Subscriptions Slated on Form 3541) 1304, c. Total Paid and/or Requested Circulation: 1304, d. Free Distribution by Mail (Outside County as Slated on Form 3541): 150, e. Free Distribution Outside the Mail (carriers or other means): 150, f. Total Distribution: 1454, g. Copies not Distributed: 46, h. Total: 1500, i. Percent Paid and/or Requested Circulation: 87% 16. Publication of Statement of Ownership will be printed in the November/December 2013 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: Michael E. Wilson, Managing Editor. November-December 2013 | Automotive Recycling 61 Final Thoughts By Michael E. Wilson, ARA Chief Executive Officer [email protected] A Busy 2013 Leads Us to Even Greater Initiatives on the Horizon A s the year ends, let’s reflect upon key activity for the Automotive Recyclers Association’s (ARA) in 2013. January: We kicked off the year with a successful Congressional facility visit with ARA Gold Seal member Kelly Roepke, President of Y-Yard Auto & Truck, Inc. of Effingham, Illinois hosting her Congressman John Shimkus (R-IL). Rep. Shimkus is Chairman of the Environment and the Economy Sub-committee of the powerful House Energy and Commerce Committee and is also Co-Chairman of the House Recycling Caucus. ARA hosted a gathering of the ARA Board of Directors, Past Presidents, Committee Chairs, and staff who met for a three-day strategic planning discussion. The leaders reviewed the organization’s mission and vision, the status of the industry, and broader automotive sector trends in the United States and abroad. ARA met with the National Highway Transportation and Safety Administration (NHTSA) staff to discuss their policies and statements on the continued use of recycled non-deployed OEM airbags in automotive repairs. In November 2012, a NHTSA press release on counterfeit airbags included many misrepresentations and errors about recycled airbags, ones that ARA corrected with NHTSA staff. February: ARA officially announced that its subsidiary, ARA Product Services LLC, had reached an agreement with Alteso Group to provide ARA members and ARA Affiliate Chapter members with ARADirect®, a robust online auction platform for the efficient procurement of motor vehicles. This ultimately increases members’ opportunity to grow their revenue stream and their business, and lowers operation costs, while helping to keep the salvage in the United States The Automotive Recyclers of Canada (ARC) adopted the Gold Seal Program. This program upholds industry standards for customer service and recycled auto 62 Automotive Recycling | November-December 2013 parts quality based on the industry’s highest service goals and ethical business practices. This program ensures that successful ARC applicants are best-in-class representations within the industry. March: ARA leadership adopted ARA’s Strategic Plan, resulting from the strategic planning sessions in January. It identifies five strategic initiatives that are the means through which ARA plans to translate its vision into practice. They include: obtain the full data necessary for proper parts identification, collaboration and electronic commerce; recognition as the depository and processor of end-of-life vehicles; improve governance structures and facilitate marketplace opportunities; increase membership; and develop an integrated strategy between ARA and ARA University to educate key stakeholders. ARA held the annual Hill Day and the Legislative Summit in Washington, D.C., together this year for greater impact, as well as held its first Congressional briefing to Capitol Hill staff. April: ARA President Chris Wright was a panelist at the National Alliance of Highway Beautification Agencies conference in Savannah, Georgia, addressing the implications of the 2012 federal highway bill, Moving Ahead for Progress in the 21st Century Act (MAP-21). A MAP21 provision expands the National Highway System to incorporate the entire Interstate System. With this provision and new road segments, states are now responsible for maintaining and enforcing outdoor advertising and junkyard control procedures for businesses located along these new segments. May: State Farm’s PartsTrader pilot phase concluded and the national rollout began of the electronic ordering system to its Select Service direct repair facilities in Arizona, Colorado, New Mexico, and Texas in August. ARA members are on the PartsTrader Advisory Board. June: The U.S. Senate Judiciary Com- mittee approved The Metal Theft Prevention Act of 2013 (S. 394) containing a provision that ARA helped to craft. It was introduced by Senator Klobuchar (DMN) and co-sponsored by Senators Graham (R-SC), Schumer (D-NY). U.S. House Energy and Commerce Committee Vice-Chair, Congresswoman Marsha Blackburn (R-TN) toured ARA member facility Pull-A-Part in Nashville. Steve Levetan, Senior Vice President for Pull-A-Part, and ARA hosted the visit to showcase the benefits of a professional self-service auto recycling facility. July: ARA staff met again with senior NHTSA officials on ARA’s concerns with the pending federal regulation for a recall database and to discuss the critical counterfeit airbag issue. August: The South African Department of Transport decided not to include a proposal banning used auto parts in their proposed amendments to the National Road Traffic Act regulations. ARA supported efforts by industry stakeholders in the country by providing data on the negative implications of such a policy. September: ARA members Joe and Steve Kosiski, Kosiski Auto Parts in Omaha, Nebraska, provided Rep. Lee Terry (RNE), Chairman of the U.S. House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade, with a tour of Kosiski Auto Parts. The Congressman’s Subcommittee has jurisdiction over motor vehicle safety issues. November: ARA hosted the 70th Annual Convention & Exposition in Phoenix, Arizona, which boasted educational sessions, international exposition, and prestigious keynote speakers. ARA also hosted the International Roundtable directly following the convention. The ARA has spent the year developing future plans for growth, educating on the industry’s value proposition, and adding value to the member programs. ARA will head into 2014 strong and prepared. ■ Automotive Recyclers Association 9113 Church Street Manassas, VA 20110-5456 USA