July - Automotive Recyclers Association ARA
Transcription
July - Automotive Recyclers Association ARA
Automotive Recycling July-August 2012 Official Publication of the Automotive Recyclers Association ™ Automotive Recycling ™ July-August 2012 | Volume 32 Number 4 Co lu m n s President’s Comments Editor’s Notes International Auto Recycling Final Thoughts | 4 | 6 | 57 | 62 Departments At a Glance ARA Action Insure This Marketing 101 Lessons Learned Advice Counts That’s My Opinion Sales Call Green Scene LARA Safety Matters Certified News Capitol Connection Crossword Puzzle Industry Calendar Advertiser’s Index | | | | | | | | | | | | | | | | 7 8 10 12 14 16 18 20 22 23 24 54 58 60 61 61 ARA CONVENTION PREVIEW Magical Discoveries 26 Participating in an ARA Convention is like arming yourself with magic. By Michelle Keadle-Taylor FEATURES FOCUS ON SAFETY Safe Mode 38 ARA’s newest committee is dedicated to keeping you fine-free. By Michelle Keadle-Taylor FOCUS ON TECHNOLOGY Data in the Cloud 41 The benefits of running your business on the latest trend in computing and what to look for in a cloud provider. Part 1 INTERNATIONAL AUTO RECYCLING Global Opportunity Rising 47 CARS and IRT prove that it is a small world of auto recycling. By Andy Latham www.facebook.com/ AutomotiveRecycling Automotive Recyclers Association 9113 Church Street Manassas, VA 20110-5456 USA (571) 208-0428 / (888) 385-1005 Fax (571) 208-0430 / www.a-r-a.org SPOTLIGHT ON EXCELLENCE Brothers Auto Parts 50 By Michelle Keadle-Taylor July-August 2012 | Automotive Recycling 3 President’s Comments By Randy Reitman, ARA President Facing Challenges Together s we are deep into summer here in the United States, the mild winter is but a distant memory. The consequences continue to be felt by many across the industry. As Fran and I have traveled to various events during my role as President, the conversations almost always turn to the growing challenges facing today’s professional automotive recyclers. I am grateful to be part of a remarkable organization whose members communicate openly about their successes and battles. I cannot imagine where Fran and I would be today without the knowledge, support, and friendship gained from many of you over the years. The Automotive Recyclers Association plays a significant role in our growth and the changes occurring all around us certainly require us to remain engaged. The ARA family extends well beyond just automotive recycling members. There are the many vendors that support our companies and organization who are instrumental in helping us achieve greater success. The automotive recyclers who currently are involved in their state affiliated associations also play an important role. What we all have in common is a desire for successful businesses. For many of us recyclers, profitable career opportunities for our sons and daughters also play into the mix. Whatever our individual circumstances, the old saying that “we are all in this together” could never be more appropriate. As we face the challenges of today and tomorrow, we must unite to take on these issues. This cooperative approach does not necessarily reach down to our day-to-day operations, but for many facing the challenges of consolidation in the industry, it has or soon will. It is only through your participation in ARA that our voices will be the loudest and strongest, as we work together on the key issues and improvements our industry and business must address to remain competitive in this rapidly changing environment. The global nature of our businesses today is highlighted every week as we bid on potential inventory against entities from around the world. The challenges presented by the auto manufacturers materialize in various forms from the difficulty of sourcing the correct part every time to reprogramming problems on many of today’s late model vehicles. Also, the fact that much of our competition is doing business in an unregulated “black” economy where their operating costs are virtually zero only underscores our increasing disadvantage. These issues have significant impact on all of us, vendors included. The more successful legitimate professional automotive recycling businesses are, the greater the purchasing power of those entities. But time is against us. We must look for ways today and every day to join together to reinforce that the goods and services that our legal brick and mortar facilities offer are better and more value laden than our so-called competitor’s value. As professional auto recyclers, this slowdown in the marketplace is a time for us to hone our trade to make us better, focusing on correcting the many deficiencies that have become commonplace of the overly busy. So, as they say in racing, it’s time to tighten the belts, clean out the waste. And gear up for tomorrow. Stay open to change – that’s something that we do as successful Auto Recyclers! A Randy Reitman ARA President 2012 4 Automotive Recycling | July-August 2012 Officers PReSiDenT Randy Reitman Reitman Auto Parts Melbourne, KY [email protected] FiRST ViCe PReSiDenT Chris Wright Capitol Auto Parts Thomasville, GA [email protected] S eCO n D V i C e P R e S i D e n T/ T R e A S u R e R Ed MacDonald Maritime Auto Salvage, Ltd. Truro, NS Canada [email protected] S eC R e TA Ry Ricky Young Young’s Auto Center & Salvage/Car Crushers Benson, NC [email protected] i M M e D i AT e PA S T P R e S i D e n T Doug Reinert Chuck’s Auto Salvage, Inc. Douglassville, PA [email protected] ARA Staff & Contractors P u B l i S h e R /C h i e F e X eC u T i V e O F F i C e R Michael E. Wilson [email protected] D i R eC TO R , M e M B e R S e RV i C e S Kelly Badillo [email protected] D i R eC TO R , P O l i C y & e X T e R n A l A F FA i R S Betsy Beckwith [email protected] D i R eC TO R , 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] D i R eC TO R , S TAT e & G R A S S RO OT S A F FA i R S Jessica M. Thomas [email protected] MeeTinG & eXPOSiTiOn Kim Glasscock [email protected] Au TO M OT i V e R eC yC l i n G e D i TO R i A l , A DV e RT i S i n G , D e S i G n & P RO D u C T i O n Caryn Smith Suko Creative Communications [email protected] For advertising information or to submit article ideas or member news, e-mail Caryn Smith at [email protected] Or call (239) 225-6137 www.a-r-a.org AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 201105456 USA, (571) 208-0428 / (888) 385-1005, Fax: (571) 208-0430, Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing 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 non-profits. Copyright © 2012 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. editor’s notes By Caryn Smith [email protected] Why Go to the ARA Convention? he website Small Business News (www. smallbusinessnewz.com) recently ran an article entitled “What is the Business Return of Attending a Conference?” The article by Lee Odden offered reasons beyond the standard “you’ll make more money,” a few of which I thought might inspire you to think differently about attending the ARA 69th Annual Convention & Exposition. Obvious reasons to attend are collecting competitive intelligence and vendor and consultant sourcing. Odden suggests, instead of taking a chance on who you’ll meet and what you’ll learn, you should have goals and a purpose to your event networking. “If you leave it to chance,” he writes, “you’re leaving a LOT of value on the table – for your competition.” He suggests, “When you attend events, T 6 Automotive Recycling | July-August 2012 set goals for the kinds of contacts you want to make. Go so far as to make a list of people you want to meet if they’re particularly important to your goals. Initiate new connections with marketing partners and vendors. At the same time, reinforce existing connections with contacts in your networking pipeline.” He goes on to say, “When meeting new people, discuss the sessions with them. Compare notes – it’s a great way to network and to get other opinions.” One tip Odden offered is something I do for the magazine and you can do for your business. He suggests that you leverage the conference experience to create meaningful new content for your company blog, articles, social media, or process documentation. Another interesting idea is to plan a post-conference brown bag lunch discussion or a more formal presentation to your company’s employees. In doing so, you’ll be more organized and thoughtful with the notes you keep and what information you think would be helpful and beneficial to them. This may shift your focus, in that you will be listening for ideas to help your team, not only yourself. If you are social-media savvy, be sure to Tweet and Facebook your convention experience. It allows customers and employees to see that you are committed to the industry. It also helps to build your credibility when you use social media to occasionally share information and not just to push your specials and deals. I hope this information provides all the incentive you need to register for the ARA Annual Convention & Expo ... today! ■ At a Glance A S S O C i AT e M e M B e R By Caryn Smith iStockphoto.com/johnnyscriv TSyS Credit Card Processing s a substantial added-value benefit of ARA membership, the BizUnite program offers discount pricing on many products and services you use every day. One such service vital to every automotive recycler is credit card processing. TSYS Merchant Solutions, (www.tsys mechantsolutions.com) a subsidiary of Total Systems Inc., based in Columbus, Georgia, conducts business in 69 countries. As a leading payment processor, one of the top ten credit card processors in the United States, TSYS has more than 55 years experience, with experienced and tenured employees who know payment processing from the inside out. One such person, Paul Niss, TSYS Regional Account Executive, has been with the company for 14 years. Niss is the representative for the company’s ARA program and can help place members in A the best solution to fit their business model. “My role is to complete the pricing and assist ARA members in enrollment. Having owned my own successful business for 13 years, my philosophy is to get the right program and services for customers at the lowest possible price; any pricing leeway I have goes in favor of my customer, as I appreciated a fair deal when I was on the other side of the equation,” says Niss. When is comes to customer service after the initial set up, TSYS has a team ready to help. “Any account problems go through customer service who is there 24 hours a day, every day of the year,” Niss says. With TSYS, customers have access to a team of representatives who understand your business and will be ready and available to assist in any way they can. They strive to answer calls within 30 seconds – for all calls, including technical assistance – you don’t have to worry about being left on hold. how it Works “Payments are placed directly into customer business checking accounts at the gross amounts, with monthly fees deducted at the beginning of each new month,” says Niss. “There is no set discount percentage with our wholesale prices available to ARA members through ara.bizunite.com, as rates differ by a client’s individual volumes, average tickets, amount of card swipe vs. key entry, and so on. I will do a free, no obligation comparison of what customers are doing or paying now so they can see our rates.” “We are, however, one of very few DIRECT processors,” Niss continues, “so there is no middle man between the card brands and our customer as is the case with many card processors who are in fact re-sellers.” According to Niss, TSYS Merchant Solutions offers the lowest rates and fees in the industry for processing of Visa, MasterCard, Discover, American Express, and debit transactions. “All transactions are done via a secure server, which to date has not allowed any of the breaches in data security that one hears about continually these days,” says Niss. “We touch two of every 4 credit card transactions in the world!” TSYS offers all solutions for processing via phone, internet, computer, iPad or mobile phone, all at a price customers will find the best in the business. One milestone for the company worth noting is that www.ethisphere.com, a website from the research-based Ethisphere® Institute – a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability – named TSYS to Ethisphere’s 2012 World’s Most Ethical Companies list, one of only 5 companies on the list in the financial services category. They say that numbers don’t lie, so it only makes sense to let Niss give you a free analysis from TSYS Merchant Solutions Program, available only in the United States, and see if this ARA member benefit can put some money back toward your bottom line instead of into your current credit card processors’ bank account. Get started by visiting ara.bizunite.com to sign up today or contact Paul Niss at (239) 287-7545, or via e-mail at pniss@ tsys.com. ■ Caryn Smith is the editor of Automotive Recycling magazine. July-August 2012 | Automotive Recycling 7 ARA Action Latest News and Reports from ARA CSi Reveals ARA Gold Seal Recyclers Outperform non-Gold Seal Recyclers usty Dunkle, President of Customer Research, Inc. (CRI), confirms that Gold Seal first quarter 2012 Customer Service Index (CSI) numbers are up from first quarter 2011. Gold Seal Committee Chair Eric Schulz is confident that Gold Seal Recyclers are the consumers’ best choice for quality recycled parts and CSI scores support that. ARA Gold Seal Recyclers now have the ability to display these high levels of customer satisfaction on their own company website and can link to CRI CSI reports of the most recent quarters, or even display previous quarters. ARA Gold Seal Recyclers CSI reports are also available on the ARA website (www.a-r-a.org). There is a one-time $25 fee for the recycler-specific html preparation. Please contact Michelle Simpson of CRI at(800) 886-3472, ext. 514, to request your link. For information on the ARA Gold Seal Program contact Ginny Whelan, ginny@ araeducation.org or call (609) 451-0760. D new ARA Marketplace Program helps Reduce Costly Returns he new CertaPartStartTM tool unlocks GM radio and navigation modules quickly and easily and solves the problem of selling locked radios which won’t operate when installed on another car(unlocks most GM radios from 2005 through 2011). The tool, highlighted in the At a Glance column of the March-April issue, also reduces costly returns and fits on most workbenches, uses 120 V AC and is quick and easy to use. To find more information on ARA Marketplace, go to ara.bizunite.com and use your e-mail address as the username and password: ara (lowercase). It is listed under the “tools” category. You may also order it directly by calling (970) 367-7383 or visiting www.certapart.com. T 8 Automotive Recycling | July-August 2012 ARA Contributes to news Story on illegal Salvage Vehicle Activity everal months ago, ARA received a call from an investigative reporter for a Cleveland, Ohio area news station about doing a segment on illegal tow and scrap operations in that state. The reporter came to the ARA headquarters in Manassas, Virginia to interview a representative from the Association and get some footage for his report. In addition, ARA staff fielded several calls from the reporter following that interview to provide further background information. The segment seen at www.newsnet5.com/dpp/news/ local_news/investigations/Undercover-investigation-exposes-taxpayer-fraud-costingOhio-millions-in-lost-revenue. Over the past year, the ARA Board and staff have been diligently working on increased NMVTIS reporting by the membership. We began last June by requesting that members provide their NMVTIS registration number on ARA’s dues renewal forms. For those that did not provide the requested information, staff followed up with several faxes/e-mails requesting the member provide their NMVTIS number for our records. To date, 92% of ARA members have provided NMVTIS registration numbers. ARA will continue efforts to secure 100% compliance with this federal statute from the Association’s direct automotive recycling members in the United States. We encourage all state and local level automotive recyclers association’s leadership to consider similar outreach with their membership. With substantial and specific compliance numbers, our shared position in both federal and state legislatures will be strengthened. S Andrew MacDonald Assumes Chairmanship Of ARA Technical Advisory Committee RA is pleased to announce that Andrew MacDonald (son of ARA second Vice President/Treasurer Ed MacDonald)has agreed to take on the role of Chairman of ARA’s Technical Advisory (T/A) Committee. Andrew is working with ARA leader and past T/A Chair, Chuck Ossenkop, to learn of the committee’s past actions and accomplishments and to talk about future goals. Andrew has had lifelong interaction with the automotive recycling industry. Growing up in Nova Scotia, he worked for his family’s auto recycling business – Maritime Auto Salvage – from a young age. He went on to graduate from the University of Waterloo with a B.A.Sc. in Mechanical Engineering. After university, he worked over three years in quality control engineering at Toyota Motor Manufacturing Canada. He then moved into purchasing at Toyota where he managed all North American supplier processes and tooling for new Lexus models. Andrew recently re-joined the auto recycling industry and is now working alongside his father at Maritime Auto Parts in Truro, Nova Scotia. The Technical Advisory Committee is responsible for monitoring automotive recycling issues as they relate to automotive design, material usage and recycling techniques. Committee members assist ARA members by developing and disseminating information related to recycling technology, recycling best management practices, use of substances of concern and material or design features of concern. If you would like to join this committee, please contact Betsy at [email protected]. ■ A insure This By Wells Fargo Workers Compensation industry Overview ne of the most prevalent issues plaguing the insurance industry these days is the growing Workers Compensation claim problem – especially since the state of the economy has continued to languish for over three years. Additionally, insurance companies have continued to “cut-throat compete” themselves into the red with irresponsible pricing in the workers compensation area. Even supposedly unrelated things like the healthcare industry have contributed to the problem. Snapshot of Disturbing Stats Firstly, let’s review where the industry is at today. In 2010, the industry combined workers comp loss ratio ended up at 118.1% – the highest level since 2000 – and up a whopping 6.9 points over 2009. According to the A.M. Best Company (which provides news, credit ratings, and financial data products and services for the insurance industry), the final 2011 combined ratio is expected to be around 118.5% and 2012 is projected to be even higher at 120.5%. This means that for every dollar of workers comp premium taken in by the industry, the carriers are paying out $120.50 in claims and expenses. You do not have to be a mathematician to figure out that this is unsustainable. Workers Comp rates have increased in each of the last three quarters of 2011 – 2.6% in the second quarter, 4.1% in the third, and 7.5% in the fourth after 30 consecutive quarters of declining rates. Pricing adequacy is going to be imperative to address the increasing gap between medical costs and workers comp rates. Salt in the Wound As if pricing inadequacy is not a big enough problem, we also have a very weak economy and high unemployment which only serve to exacerbate the problem of workers compensation 10 Automotive Recycling | July-August 2012 iStockphoto.com/Courtney Keating O claims. For example, it is not uncommon for employees who hear rumors of an impending lay-off to start counting down the “seniority list” to see where they might rank on the list, which leads to fraud from some unscrupulous employees who create a ficticious workers comp claim to their advantage. Another problem adding to today’s unsettling workers comp environment is the extremely high cost of health insurance. This is especially true for employers with a high percentage of young single male employees. Workers in this age group are more likely to spend their extra money on luxury items or vacations rather than spend it on health insurance, even if it is available through their employer. These young workers between the ages of 22 and 27 – known as the “invincibles” – feel they are not going to get sick or have an accident. With their money spent on something else, an injury during an after work activity, like softball, can be an expensive proposition to their personal finances. Since they have chosen not to have health insurance, they now have no way to pay the medical bills associated with this injury. Some decide to show up to work as if nothing happened, then keel over about mid-morning with an on-the- job injury – and now the employer is paying for their softball injury via workers compensation. This is even more of a travesty since your workers comp experience modification rate consists of claims from your second, third, and fourth years back, which means your modifier will be inflated by this claim from a softball injury for at least three years. Ratios and Trends Count The combination of careless employees and tough economic times can affect your workers comp loss ratio in other ways as well – even where no real injuries have occurred. I was once contacted by a large prospective client who had an extremely high experience modification rate (almost 2.00). He wanted me to review his claim history and see if we could find out if there was something specific causing this. He provided me with 10 years of loss runs, and I spent the better part of an entire summer “graphing” the date of loss for each claim. When I finally finished, I had a graph that looked like two mountain peaks next to each other – one peaking in May/June, and the other in September/ October, revealing an obvious trend. Then, I inquired about his workforce demographics, which he advised consisted of 1,500 employees, mostly young single males. I asked him if he gave his employees time off for the opening of fishing season, which is a rite of passage in Minnesota in the middle of May each year. He laughed and said “absolutely not!” I pointed to the graph I had done and to the peak in May and advised him that if I did not know any better, I believe he was giving them time off via “bogus” workers comp claims. The same held true for the September/October peak for hunting season. While this employer was in total denial, he could not deny the trend revealed by the vast majority of worker’s comp claims within those two time periods, and that they were mostly minor claims that never resulted in anything more than a couple of doctor visits and a few days off (enough for a few days of fishing). 22 We then reviewed his rights as an employer to require a letter from the doctor treating those employees advising whether or not the “injured” employee could work, and, if so, whether or not they had any work restrictions. I also advised him that he had the right to demand these injured employees show up for work to do jobs within the restrictions – even if they had to create jobs to accommodate them. It did not take long at all for those employees to realize that the days of “faking” a work-related injury to get a few days off for the fishing opener were over, and they gradually stopped doing it. In summary, these are tough times in the workers compensation insurance market – and getting tougher. Rather than ignoring the problem, an employer is much better off to realize the lengths employees will go to for a few days off or to have a non-work related injury paid for by your workers comp policy. Frankly, most employees have no idea that you must purchase a work comp policy to fund expenses caused by a work-related injury. They actually think work comp is some non-profit service organization that pays these claims. If they knew that the pool of money you use each year to give raises was being exhausted by a high experience modifications caused in large part by bogus claims, I assure you they would think long and hard about doing it the next time the situation arises, or let you know when a fellow employee tries to use the system for their advantage. ■ 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. ) (more courses just added! July-August 2012 | Automotive Recycling 11 Marketing 101 By Mike French [email protected] while back, an auto recycler handed me a flyer he had designed and printed for his company. He had proudly used a “design and print website” and wanted me to see what he had done. I looked it over and noticed immediately that he had broken many of the basic rules for making any marketing piece effective. Unfortunately, he had already printed and mailed thousands of them and I’m very sure after looking it over that most of them went directly into the trash without being looked at or responded to. I wish he would have passed it by me before he went to press. It was obvious to me that he didn’t know what he didn’t know. It’s very sad because he could have gotten a pretty good response from a direct mail campaign if he had included the right things. Below are some of the mistakes I see made most often and how to fix them. 1. No headline. This continues to be the number one mistake I see in all visual forms of automotive recycling ads. Typically, the offending ad has only the company logo or the name of the company, such as, “Billy Bob’s Auto Parts.” In a typical Yellow Page book you will see entire pages of ads designed that way. It’s virtually impossible for a reader to know whom to call when only logos or company names are shown. Any ad on that page that uses a powerful, responsepulling headline would gain the selling advantage over the rest. 2. No offer. I see this mistake almost as much as the one above. The rule to remember is this: if there is no offer, there will be no response! It’s as simple as that. 3. No call to action. Most ads don’t include a call to action. The truth is if you don’t say what you want them to do, most won’t do anything at all. Use a strong call to action on every ad such as, “Call Us Now!” or, “Stop by today and ask for Gary!” or “Visit our website right now A 12 Automotive Recycling | July-August 2012 and type in code number 123XYZ and start saving today!” 4. No coupons. Coupons add value, especially if they are on something that comes in the mail. Everyone sorts their mail over the trash and an attractive money saving coupon will quickly catch the reader’s eye and make the piece a keeper. A coupon also causOne of the mistakes i see most often is es a person to act of people who look like they’ve been immediately to an offer, especially if it’s a lined up against a wall for a mug shot. great coupon that includes an expiration date. Hint, always is to have your staff person stand on a 40 make coupons look like coupons because to 45 degree angle and turn their head people sorting the mail over the trash to look right into the camera. Be sure may miss them if you don’t. For instance, they give a million dollar smile to send put a dashed line around them with an a positive message that says, “I’m friendicon of scissors near the edge. ly and I’m ready to help you.” 5. Nothing for “free.” The word “free” 7. It’s boring. Probably the mistake is still the most powerful word in adverthat leaps ahead of all the rest is that tising, yet many recyclers fail to offer anymost do-it-yourself ad designs are simply thing for free as a part of their advertising not exciting or interesting to the receivprojects. The good news is that “free” er. There suffer from a lack of creativity, doesn’t have to cost you much. You can bad color choices, non-existent or very offer free local delivery, free parts counpoor quality photos or illustrations, and sel or expertise, free parts locating, free unprofessional and amateur techniques. time-limited warranties, free imprinted Remember, you don’t get a second promotional items, and so much more. chance to make a good first impression. Always shout your free stuff in every ad Your ad must be a professional and posyou design. It will grab your reader’s itive message by its very appearance that attention, and help drive sales. reflects your entire company inside and 6. No staff photos and/or they’re just out. Many other things can be done to plain bad photos. Many prefer to buy improve just about any ad. But following from a human being and a staff picture these simple fixes will move you closer to connects people to a real person who is getting a positive response, rather than there to help them. One of the photogan expensive tax deduction. ■ raphy mistakes I see made most often is of people who look unhappy, messy, disMike French, President of Mike French & tracted, or they look like they’ve been Company, Inc., can be reached toll free at 800238-3934 or visit his company’s website at lined up against a wall for a mug shot. www.MikeFrench.com. One trick to avoid a mug shot photo iStockphoto.com/Anne-Louise Quarfoth The 7 Biggest Advertising Mistakes Auto Recyclers Make and how to Fix Them lessons learned By Ginny Whelan [email protected] Building a Bridge: Making it easier for Repair Shops to Trust Recycled Parts Quality body shop owner of thirty years, operating both a collision and mechanical repair facility, confesses that he is resistant to using recycled parts and is confident that many others in his industry would confess the same. One of the major problems is that both entities – the repairer and auto recycler – are squeezed by the insurance giants, who, of course, want to contain costs, usually at the expense of others. They refer to recycled parts as quality replacement parts. However, when it comes to defining quality recycled parts, the definition lies in the eyes of the beholder. Let there be no question of doubt, repairers recognize that recycled parts have their place and many are utilized to prevent cars from becoming a total loss. They are sensitive to that. All parties involved share the same goal – a repairable vehicle – but the OE’s repair standards discourage the use of recycled parts. iStockphoto.com A Get With the Program! Automotive Service Association (ASA), applauded ARA for taking the lead in developing the Certified Automotive Recyclers (C.A.R.) and the Gold Seal Program. In a statement they said, “We both have members, some good, and some bad. However, I believe both associations have the cream of the crop as their membership base.” We both come from often misunderstood industries. However, automotive recycling has evolved into a sophisticated market and technology-driven industry that constantly changes in order to keep pace with innovation in the automotive technology and manufacturing techniques. What the auto repair industry wants the auto recycling industry to provide is quality parts with consistency and assemblies that consistently come the same way (i.e.: no surprise on delivery!). When we deliver a surprise it affects the 14 Automotive Recycling | July-August 2012 it is my opinion that if an auto recycler does not perform up to the standards of the program, they will find themselves left out of the repair process. repair cycle time. An auto recycler’s lack of attention to detail can jeopardize the recycled parts in the marketplace with the repair facility, insurer, and the vehicle owner. Over a decade ago the ASA agreed to partner with ARA to promote the Gold Seal program within its membership and to educate their members that they should look for the Gold Seal logo to provide a strong measure of quality assurance when ordering recycled parts. The repairers only requested that we, the members of ARA, show our support of the Gold Seal Initiative. “Show us the numbers,” they asked, but sadly 13 years later only 10 percent of ARA members are Gold Seal certified. ARA has made a major investment, but now it’s up to all of you, the ARA members, to get on board. Let the Gold Seal program and its criteria become your business philosophy. Remember, customer service index (CSI) is the backbone of any successful business entity. CSI is not merely a perception of your customer’s opinion. It is reality. Your support of the Gold Seal program will be demonstrated through your individual actions. CSI is the barometer to measure your customer satisfaction. Played Out on the Consumer Stage The use of recycled parts for collision repair is an ongoing drama involving the stars, collision repairers and the auto recyclers. The supporting cast includes the insurance companies, and to a certain degree, the OEMs, whom we might cast as the bad guy. The insured become the audience to which they all play. The plot thickens by a continual failure to communicate, making the final outcome often not a happy ending for us. The plot twist for the audience is the battle between entities to clearly define quality recycled auto parts in understandable terms – and the greedy tug-of-war over marketshare (i.e.: profit) of parts sales. It is obvious to all watching that both the collision repairer and auto recycler have a longstanding record of mistrust to overcome when it comes to describing and understanding a recycled part’s quality and the repairer’s decision not to use these parts in the repair of a damaged vehicle. Who’s Moving it Forward The Automotive Recyclers Association (ARA) together with the Collision Industry Electronic Commerce Association (CIECA) presented a webcast to educate members of both organizations on the three years of collaboration through the Recycled Parts and Inventory Committee to develop standards codes and electronic messages for recycled auto parts to increase the use of quality recycled parts in repair estimates and work orders. A Recycled Parts Roundtable (a solution-based forum of leaders from the collision repair and recycling industries) asked the collision industry to complete an important survey. The Roundtable states that “The survey was to help determine common goals and strategies between collision repairers and the recycled parts industries.” The survey asked: • When you source recycled parts, what are the primary reasons you use them? • What category of parts do you prefer to use for body repair (rank in order): New OEM, Recycled OEM, Aftermarket, and Remanufactured? • How do you think recycled parts should be priced? – Clean, complete and undamaged – Priced to represent actual condition – Some percentage of the new OEM part list price • Are you aware of the recycler industry certifications or quality specifications? • If so, which recycler certifications or quality specification do you use when you order parts? • What do you think is the best way to identify and communicate damage on recycled parts? • What factor would increase the number of recycled parts sourced and purchased using an automated parts ordering system? • To reduce cycle time using recycled parts what steps would you take? • Do you use “Cut Sheets?” • When ordering recycled parts do you ever? – Order the part from two recyclers? – Order sheet metal parts that need to be cut from the body shell and return for credit? – Return your parts if not used right away? – Use recycled parts as part of your “Green” marketing program? With thousand of estimates and repair orders written every day these survey questions identify the areas of concern that have divided the collision repairers and the auto recycler part suppliers. The automotive recyclers have worked hard to close the communication gap. The ARA E-Commerce Committee meets monthly to define recycled parts quality and damage code standards and limit the number of variables associated with the accepted use of recycled parts. The automotive recycled parts e-marketplace is evolving fast, the titanic task to manage codes and standards are the tools to grow our existing e-commerce business while providing structures and an electronic road map from an estimate for repair to recycled parts procurement. CIECA and ARA have been working together for the betterment of the operations at repair facilities, recycled parts providers, recycled parts warehouses and networks, insurance companies, and vehicle owners. The standards and efforts of each have been integrated into one cohesive, non-conflicting standard and workflow between all parties, analyzing who the two parties are, what do they develop, how do they work together, and what’s the benefit. Overviews down to specific products are discussed. The ARA Gold Seal Program is a certification of an ARA C.A.R. member that has 27 audited standards for both part quality and customer assurance, all of which requires an independent third party customer satisfaction audit quarterly which is published on the ARA website (www.a-r-a.org). The ARA University (ARAU) is the premier training arm of automotive recyclers in the area of recycled parts standards & codes. The ARAU continues to build courses that train recyclers on recycled parts grading and an improved understanding of the ARA and CIECA approved standards. Enrolled recyclers are tested and certified on their course work. Action Plan With all these proactive steps, the real question is: Can all this effort result in the sale of more recycled parts or will part sales go to another vendor? This is something I will explore in further columns, but for now, it is my opinion that if an auto recycler does not perform up to the standards of the program, they will find themselves left out of the repair process. E-Bay Motors and Hollander have selected the C.A.R.-Gold Seal members as the auto recycling company standard for recycled parts on E-Bay. Car-Part Pro recognizes C.A.R.-Gold Seal companies, to show a higher level of professionalism and service to their customers. Do not sit on the sideline of customer assurance. Make the investment to become C.A.R. and Gold Seal certified. Visit www.a-r-a.org and start the application process today for a stronger business tomorrow. ■ Ginny Whelan, an ARA Past President, is Managing Director of the ARA Educational Foundation and founder of the ARA University, the leading Web-based training resource in auto recycling education. Visit www.arauniversity.org. July-August 2012 | Automotive Recycling 15 Advice Counts By Jim Counts [email protected] Crush it e all know that without a steady influx of new inventory, sales will go down and cash flow gets worse. But, where do we find the money to purchase that inventory? Well, one option is to cash in on a resource that usually yields less than a 5% return on investment: our old vehicle hulls. clean the shelves and racks out once or twice a year. If we are pulling the parts that normally sell, we are usually pulling most of the high dollar parts. I say this because of the supply-and-demand principle. If we pull the in-demand parts, we are pulling the parts that have the most value, otherwise why waste the labor? I realize we may I have talked before about the practice of holding on to vehicle hulls “until the metal prices go up.” So, now metal prices are around the all-time high and a lot of us are still hanging on to hundreds and hundreds of old car and truck bodies. Why? Just how long should we keep our vehicle hulls? Many recyclers feel like the longer we keep the vehicle bodies, the more money we will make. About once a year someone will tell me they plan to purchase car racks to stack hulls or buy more land, so they can keep the hulls longer. I readily accept that we sell some parts off some of our hulls, but I don’t think we do a very good job of tracking the amount or average dollar value of these sales. Let’s look at this from my favorite perspective – the numbers. Normally, when we sell an engine or transmission out of a vehicle, we pull all the other parts we feel will sell. The reality is, we pull a warehouse full of parts that will never sell. That is why we have to sell a quarter panel or rear clip off some vehicles, but most of the in-demand parts will sell within six to nine months of the date-of-purchase. If we have a vehicle hull for a year, then our customers have been telling us for a year they do not want these parts. When we look at what it costs us to sell a part (too many of us don’t know the true cost), and the steadily declining value of parts, it just does not make sense to keep the hulls any longer than one year. If you are thinking it doesn’t cost anything to keep the hulls then let’s do a little simple “dirt math.” Here in Texas, vehicle hulls are crushing for $200 to $270 each. That may be more than you are getting in your area, so I will use a lowball figure of $200 per hull. If we crush 100 of our older and picked-over hulls, we would have $20,000. If we take this money to the salvage pool and buy inventory that we need, we will have at least $40,000 worth of sellable parts on these fresh vehicles. Plus, we all know what fresh inventory does to sales. Sales go up Caryn Smith W 16 Automotive Recycling | July-August 2012 ... right away! We’ve now traded-in 100 picked-over, small ticket producing hulls for $40,000 of needed inventory, with engines and transmissions that make most of our sales and profits. I think that’s a pretty good trade, don’t you? Let’s say we are a really bad buyer and it takes 180 days to recover what we pay for vehicles. That would mean we would be able to invest the $20,000 crush-money twice in one year. Therefore, we have now traded-in the 100 picked-over hulls for $80,000 in fresh inventory. What are the chances that those 100 hulls would produce $80,000 in additional sales if we had kept them for a year? Even if we do a bad job of buying, we are still making a lot more money than we would have by keeping the vehicle hulls. If you had an old piece of equipment that was worth $20,000 and I offered to trade you a new one that was worth $80,000, how long would you wait to take me up on the offer? Not long, I hope! We just can’t make the numbers work by keeping vehicle hulls when we don’t have enough money to buy the inventory we need. Look at those old hulls as a checking account that pays 1 or 2% interest, and let’s go out there and cash a big check and buy fresh, in-demand inventory. It’s one of the best trades you will every make. We at Counts Consulting have made a career of analyzing the automotive recycling industry and developing simple solutions to what most people see as complicated problems. The math we just did is not hard and there is a lot more of this type of simple math that you could use to make good decisions in your business. Remember, what you don’t know, is hurting you! ■ Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit www.countsconsulting.com. That’s My Opinion By Ron Sturgeon [email protected] Don’t Overshare o you ever wonder how much information to provide your banker? The authors of Getting To Yes With Your Banker share their thoughts on the matter. Ron Sturgeon (entrepreneur): All bankers have their own little thing that they like or don’t like to see on a personal financial statement. I took my statement which did not list any personal belongings to one banker. When we met, I was wearing about $10,000 worth of jewelry, none of which was on my statement. A guy who had been to see the banker before me had listed all of his belongings, like TVs, clothes, and jewelry. Now, we all have these at home, but we know that if we’re hit by a bus tomorrow, they aren’t worth a thing. But this person had listed and placed a value on all his belongings along with his real estate and cars. Then the banker met with me, and I didn’t list any personal belongings on my financial statement. He felt that the values on the real estate and everything else that I had listed were probably more realistic than those of the guy who tried to squeeze every dollar into his statement. Greg Morse (banker): A lot of the statements that people give me have the appraised value of their property, so I’ll double-check that with the appraisal district numbers. The tax appraisal values better not be too far off from the numbers the customer gave me. If you paid $500,000 for this property a year ago, and now you’re telling me it’s worth $1 million, that’s a red flag for me. Ron: On my personal financial statement, I show the real estate and any other large assets at cost and at market. This provides the banker with an acid test. If I paid $500,000 for it, and I am saying it’s worth $600,000 five years later, he believes it’s right. If I say I paid $500,000, and it’s worth $700,000 (accompanied by a story about what a great deal it was), he thinks I am likely stretching the truth. Bankers are reasonably smart, so don’t D 18 Automotive Recycling | July-August 2012 waste time trying to fool them. You are a lot better off having fewer assets but being really credible. Greg: I don’t want to see that you’ve put your jewelry or your stamp collection on there. It’s classier to disclose every penny that you owe, but we know you haven’t put down everything you own. it’s classier to disclose every penny that you owe, but we know you haven’t put down everything you own. Ron: I always note in my financial statement that the real estate value is conservatively based on my knowledge of market comparables. This won’t work unless you have creditability in this area. For purposes of the math, it’s based on cost. But you have to be honest. Always just answer the questions you’re asked and don’t try to add more information. Greg: And again, that is going to speak to the kind of relationship you’ll have with your banker in the future. I want to know that you’re going to give me the information I need, when I need it. how Much information is Too Much After you’ve met all the customary standards, both personal and professional, the situation should progress and you will have a good working relationship with your banker as you gain credibility with him. Just as with the personal financial statement, it’s important to exercise discretion in how much information you provide your banker. As in all relationships, it’s important to be honest, but that doesn’t mean you need to disclose every little fact. Remember, you can’t put the toothpaste back in the tube! Ron: You have to have a good relationship with your banker, but some people want to share every detail, even if it’s unlikely to affect the banker. I’m not going to pick up the phone and tell my banker that I just had a customer fall down in the shop and cut off his finger, when I have insurance. Some bankers will want to hear about that, but when I talk to the banker I want to talk about good things and have positive energy. But, I also want to make sure that I disclose anything that’s dreadful or that affects the banker directly. For example, one of the businesses I used to own rented out exotic cars. A driver rented a green Lamborghini and basically cut the car in half with a tree. When that happened, I didn’t call the banker who held the loan on the car because, both I and the customer had insurance. The insurance was going to pay for the car and it wasn’t something that the banker needed to be concerned with. Now, if he’d called and asked me about it, I would’ve told him about it. Greg: I once heard somebody say, “I’ve never killed a messenger as long as they got me the message before it was too late.” That’s really true with your banker. If you’re going to bring me bad news, don’t bring it to me when it’s too late. I want to know as soon as practical how it will affect you and the bank, and any solutions or actions you are planning. You can ask for my advice. But what I really want are solutions. The bank wants to know if you’re in a lawsuit that’s material, but you’re right – it doesn’t care about something insurance will take care of. If I find out something on the street I should know, it’s completely different than finding it out from you. If it’s going to affect me, I want to know the good, the bad and the ugly. ■ Since 2001, great ideas to improve your auto recycling business have been found on Ron’s Web site, www.autosalvageconsultant.com, the definitive source for recyclers’ management and training needs. Sales Call By Leanne Hoagland-Smith Getting More Business into your Sales Funnel ould you like to be the Aplus professional salesperson in your organization that brings more business to your sales funnel? What does that mean for you? More money? More recognition? Greater peace of mind? So what do you need to do to become that person? If the goal is to increase sales, then it stands to reason that each sales person needs to be the best that she or he can be. To become the best demands that sales professionals are always doing more than expected or in simpler terms earning A-pluses at every opportunity. Before reading about what Aplus behaviors look like, you must emotionalize why you even want to be an A-plus professional sales person. People are emotional creatures and change does not come easy. Did you know that research supports this statement: Only 1 in 10 will change despite fear, facts and force. (Deutschman, Change or Die.) Until you build enough emotions for you to get off the dime, no matter how much you think that you want to be an A-plus salesperson, you will stay where you currently are. Within my business coaching training practice, I share this thought: “People will only change when there is enough emotional investment to secure some gain or to avoid some pain.” Grab a piece of paper and fold it down the middle. Label the left column “Gain” and the right column “Pain.” Then begin to list all the gains for becoming the best that you can be. As you write, also think of all the pains that may happen if you fail in this endeavor. Sales Coaching Tip: Avoiding pain is usu20 Automotive Recycling | July-August 2012 iSto ckp hot o.c om /Ta ylo rH into n W ally a greater motivator than securing gain especially if you wish to increase sales. Now, consider these ten A-plus behaviors that will put you at the front of the class or your sales team. 1. Active Listening – How do you listen to what is being said to you? Possibly, you are talking way too much and not listening enough? Sales Coaching Tip: If you are telling, you ain’t selling! (Source: David Herdlinger) 2. Appearance – How well are you dressed? Do you present a professional image? 3. Attitude – What type of attitude are you broadcasting? Are you truly happy to be in front of your potential customer? 4. Authentic – Are you truly what you say you are? Do you “walk your talk?” Sales Coaching Tip: Having a written values statement helps to ensure authenticity. 5. Accountable – Do you follow up when you say you will? Sales Coaching Tip: Almost 50% of all leads are left dying on the vine and never followed up. 6. Agreement – Do you find common ground from which to agree? Do you seek first to understand the challenges of your potential customer before attempting to sell your products or services? 7. Appreciative – Are you grateful for the opportunity to meet with your customer or potential customer? How does that person know of your appreciation? Sales Coaching Tip: Sending a postcard or a note after a meeting will help you become the Red Jacket in the Sea of Gray Suits. 8. Arrival – Are you punctual? Do you arrive on time and more importantly leave on time? 9. Aware – How much do you know about the person sitting in front of you or the business? Have you taken the time to do your research? Do you understand your potential customer’s customer? What are the trends in the marketplace for this particular industry? 10. Ask – Are you asking the right questions given your relationship? Asking too personal questions too soon is a disaster! By adopting these A-plus behaviors, you can become the best of the best and win more sales. ■ Sales coach Leanne Hoagland-Smith helps business owners and executives who are truly tired of struggling to unlock the sales and business results that they want. She can be reached at (219) 759.5601 to schedule a free sales coaching strategy session. Green Scene By Michael R. James and Matthew T. Knight [email protected] The “Real” Value of Certifications articipating in certification programs such as ARA’s Certified Automotive Recyclers (C.A.R.), Gold Seal, or United Recyclers Group’s URG 8000 carry a certain prestige in the industry and are often viewed as simply another “feather in your cap,” but the true value lies in profitability. While an involved consumer may know what these certifications are and what they mean about your facility, most have absolutely no idea, and it is not likely that simply having a C.A.R. or URG 8000 certified logo in your window will increase sales. However, participation in these certification programs improves your chances for increased profitability. Two aspects of these certification programs that have the greatest impact on customer’s motivation to buy from your organization are curb appeal and quality of parts. The primary focus of the URG 8000 program is the quality of the parts you deliver to the customer. The program ensures that the quality of each part is iStockphoto.com/James Brey P checked every step of the way throughout the process of inventory, dismantling, stocking, part pulling, packaging and shipping. It also places accountability on your employees responsible for each phase in production, which encourages increased productivity and a workforce that is quality conscious, through and through. When a customer receives a part across your counter that looks like it was pulled out of a trash heap, they won’t care if it actually works or not. Perception is everything. Let’s say that a body shop calls to find out if you have a door in stock for the car they’re working on and you tell them that you have one, but it has an hour’s work worth of damage on it. You agree on a price, and the sale is done. One of the parts pullers runs out to grab the door in a hurry to bring it back to the shipping area and “WHACK” there’s another two hours of damage. Without any system of accountability in place, he is not likely to say anything about it, and the customer will feel like they’ve been misled when they receive a product that was not as described during the sale. The C.A.R. program encourages you to ensure your facility looks like a respectable organization. The overall view of your facility from across the street (and from all angles) is considered when applying for certification. Another factor is the reception area, where customers are greeted and wait while their parts are being located or prices quoted. Even the tone of the signs posted in your establishment is considered, ensuring you have created a positive atmosphere for your customers. While the appearance of your facility is just one facet emphasized by the C.A.R. program, it will likely have the greatest impact on your profitability. How likely is a customer to return to your store if they have to sit on a musty old bench seat from an ’88 Oldsmobile while waiting for their parts, or if they have to step over a puddle of oil or walk around a pile of rearends in the parking lot just to get in the front door? Not likely at all. We have always been staunch supporters of the certification programs available to the industry, because the more you get involved and take part in making your own organizations better, the more the general public realizes that this is truly a green industry and the stigma that has blighted “junkyards” for generations lessens its hold on everyone. Finally, you should know that the international leaders of the industry have been working for the past year on a merger of the C.A.R. and Gold Seal programs with the URG 8000 program and the Canadian certification programs. More information on this united certification will be available from ARA in the near future. ■ With over 25 years experience in pollution prevention, Mike James is President of James Environmental Management, Inc., specializing in environmental compliance assurance and currently serving over 1,200 facilities in the U.S. 22 Automotive Recycling | July-August 2012 lARA – ladies of the Automotive Recycling Association By Lynn Novelli Mary Moberg in Action ARA member Mary Moberg is a newcomer to the automotive recycling industry, joining Hollander in late 2010. She is quickly learning the recycling business through her many contacts with ARA members and participation in ARA conferences and events. Automotive Recycling magazine recently caught up with Mary at Hollander headquarters to capture her perspective on the industry. AR: What is your current position and how long have you been in it? Mary Moberg: I am the marketing manager for Hollander, and have held this position for 18 months. This is my first time in the auto recycling industry. AR: Tell us about your previous employment. Mary: I was with Thomson Reuters where I was a marketing project manager for four years. That was very different from where I am now in some ways. Marketing is marketing, true, but at Thomson Reuters I was part of a massive marketing organization. At Hollander I head up a small, but effective marketing department. Before Thomson Reuters I worked for Lexus Nexus in marketing until the division was sold to Thomson Reuters. My first position was with NCR in Dayton, Ohio. AR: What is your educational background? Mary: I have a degree in communications from The Ohio State University. I recently completed the Mini Masters in Marketing Management program at University of St. Thomas in Minneapolis, Minnesota. AR: Moving over to Hollander meant getting into a totally different industry for you. What was it about the company and the recycling industry that attracted you? Mary: Hollander has a rich history, and I was intrigued with that and the whole green aspect of the auto recycling indus- l i really like that auto recyclers are the original recyclers and it’s what they do. try. I really like that auto recyclers are the original recyclers and it’s what they do. This isn’t something they do to go along with what’s in or a trend. It’s great to see that’s how recyclers run their business. AR: As a female in a largely male industry, what are your first impressions of auto recycling and ARA? Mary: Part of me thinks that we are past the male-female thing. But every industry has its challenges. I believe there are two important guidelines to keep in mind in any job. One is providing the you are invited to the lARA luncheon AT THE 69TH ANNUAL ARA CONVENTION & EXPOSITION October 26, 2012 • Orlando, Florida The LARA luncheon has the goal of greatly enhancing the automotive recycling industry and the role of women within it – through education, networking and sharing of resources. Other goals include to: • Develop a mentoring program to help women advance in the industry. • Offer education and leadership development opportunities to build skills. • Provide networking opportunities for women in the industry. • Create programs designed to attract more women to the industry. • Encourage a cross-industry exchange of ideas and perspectives on the particular challenges women face. • Recognize the contributions and achievements of women who are industry leaders. • Establish a clearinghouse of information and resources for women in the industry. • Provide a forum for women and men to collaborate on initiatives to recruit, develop and advance women in the industry. best work product that you can. The second is communicating effectively and understanding that there are different communication styles. My first week on the job was at the 2010 ARA Convention & Exposition in Austin, Texas. The first impression of the industry was very positive. Recyclers support each other so they all can be successful – and that these are the nicest people in the world. AR: What do you see as a woman’s role in the recycling industry? Mary: This industry has some unique twists. There are a lot of family-run businesses and multi-generational businesses. Originally, the business in many cases was run by the man with the woman by his side. But the dynamics are changing over the generations so that is not necessarily the model now. AR: Do you expect to find challenges as a female in the auto recycling industry? Mary: Personally, I don’t find too many challenges for myself, possibly because I came from the legal industry and there a lot of men in that business. I see a lot of women out there running recycling operations, supporting the business. That’s why LARA is important – it’s nice for women to be able to reach out to other successful women and hear their perspective. AR: What opportunities do you see for women in the industry? Mary: I think there is unlimited opportunity. You’ve got to find your passion and go for it. If this industry is your passion, there are places for women to go. A woman can come into the recycling industry and make a good living. The women who have been running the companies and held offices in industry organizations, those are the trailblazers, and we have them to thank for the opportunities that are there for us now. ■ Lynn Novelli is a freelance writer based in Ohio. July-August 2012 | Automotive Recycling 23 N Co l e w um on n Saf ety! Safety Matters Information from the ARA Safety Committee Does your Gas Can Meet OShA Requirements? an you legally use that red plastic $5.00 gas can on your jobsite? The short answer, probably not. OSHA Standard 29 CFR 1926.152 (a)(1) states, “Only approved containers and portable tanks shall be used for storage and handling of flammable and combustible liquids. Approved safety cans or Department of Transportation (DOT)approved containers shall be used for the handling and use of flammable liquids in quantities of 5 gallons or less.” Anytime the word “shall” is used in a regulation, it means that this rule is mandatory and must be followed. C What is an approved safety can or DOT gas can? A safety can is (29CFR1926.155(1) an approved, closed container, of not more than 5 gallons capacity, having a flash arresting screen, spring closing lid and spout cover and so designed that it will safely relieve internal pressure when subjected to fire exposure. Approval is given by a nationally recognized testing laboratory, for example, Underwriters Laboratory, Inc.(UL). Gas cans can only display DOT approval markings when they meet stringent Department of Transportation requirements. Here is where it gets confusing, inexpensive plastic gas cans may meet Environmental Protection Agency (EPA) requirements, but they do NOT meet DOT rules. Some gas cans may say they meet California Air Resource Board (CARB) spill-proof regulations in certain states or Air Quality Management District (AQMD) rules. Again, this doesn’t help when trying to comply with OSHA. None of these other regulatory agencies are the same as DOT. They are not interchangeable. If you are looking for a UL “approval,” you will see the following words on the Gas cans can only display DOT approval markings when they meet stringent Department of Transportation requirements. n an effort to make sure that individual automotive recyclers are aware of safety practices required by the U. S. Occupational Safety and Health Administration (OSHA), ARA’s new Safety Committee, chaired by ARA Immediate Past President Doug Reinert, will offer the ARA membership regular safety tips in as many media outlets as possible, starting with ARA’s weekly enewsletter and a regular column in Automotive Recycling magazine. The subject matter of the tips will be determined by the Committee as members learn more themselves about specific OSHA requirements and the fines associated with noncompliance. The first tip above addresses what type of gas can automotive recyclers need to use and could save you $500. According to OSHA, a facility should only use gas cans holding 5 gallons of gas or less with a spring-closing lid and spout cover, a means to relieve internal pressure and a flash-arresting screen. The spring-closing lid and spout cover is designed to keep liquid and vapor from escaping at ordinary temperatures and to lift slightly when exposed to excessive outside heat. The i 24 Automotive Recycling | July-August 2012 most common safety can is the short and round red metal can with yellow labeling. Some however, are now available in high-density polyethylene plastic. U.S. Department of Transportation (DOT)-approved containers are used more often by the general public. DOTapproved gas cans, or “jerry cans,” have a screw-on cap instead of a spring-closing lid, spout cover or flash-arresting screen. They do not meet the “safety can” definition, but OSHA has decided that they pose very little hazard and meet the basic intent of the standard. DOT-approved gas cans will be labeled certified to meet American National Standards Institute and American Society for Testing and Materials standard ANSI/ASTM F852-86. OSHA recently started allowing plastic jerry cans, but most are metal. Several committee members noted that they had been fined $500 for each wrong can they had in their facility. So don’t delay. Make sure you know exactly what kind of gas can is approved by OSHA and then log onto ARA’s marketplace to inquire about your discount on the approved cans. iStockphoto.com/Richard Goerg ARA’s new Safety Committee Begins Regular Safety Tip Feature: OShA Approved Gas Cans - Reading this could save you $500! product, UL Listed. If your can has a UL Classified marking, this is not the same as UL Listed (approved). If you want more information about UL markings, go to http://tinyurl.com/pxb9dt. Now that you know the correct gas can to use, shown below are safety rules to follow when using gas cans. The insulating effect of the plastic surface prevents the static charge generated by the gasoline flowing into the gas can from grounding. Safety Tips for Gas Cans Portable Gas Cans Several vehicle fires have occurred as a result of filling metal portable gasoline cans while placed on the back of pickup trucks with plastic bed liners. The insulating effect of the plastic surface prevents the static charge generated by the gasoline flowing into the gas can from grounding. As static charge builds, it can create a static spark between the gas can and the fuel nozzle. When the spark occurs in the flammable range in the gasoline vapor space near the open mouth of the gas can, a fire can occur. Some tips: 1. Do not fill any container while it is inside a vehicle, a vehicles trunk, pickup bed, or on any surface other than the ground. 2. Use only an approved container with a cap that fits tightly. 3. Remove the approved container from the vehicle and place it on the ground. Keep container a safe distance away from the vehicle, other customers, and traffic. 4. Keep the nozzle in contact with the can during filling. 5. Fill container about 95% full to allow for expansion. 6. If gasoline spills on the container, make sure it is evaporated before putting it in your vehicle. equipment Refueling 1. Shut off motor on equipment and give motor time to cool off before refueling. 2. Don’t refuel near an open flame or near a sparking situation. 3. Keep a fire extinguisher nearby. 4. Don’t spill the fuel. 5. Don’t overfill the fuel tank. On hot days, allow for expansion. ■ July-August 2012 | Automotive Recycling 25 Magical Participating in an ARA Convention is like arming yourself with MAGIC! By Michelle Keadle-Taylor n today’s economy and ever changing society, we can all use some magic in preparing for what’s ahead. That’s why it’s more important than ever to join your associates from across the United States and around the world, at our industry’s premier event, loaded with opportunities to learn about new products and services, experience outstanding educational sessions and network with colleagues. 26 Automotive Recycling | July-August 2012 Discoveries “I have been attending ARA conventions for the last 25 years,” said Linda Pitman of Dulaney Auto and Truck Parts in Amarillo, Texas. “I grew up in the industry so I also went to a few conventions in the late 60’s and early 70’s. I enjoyed last year’s Charlotte venue because of the NASCAR points of interest, the seminars, and as always the opportunity to network with people from the industry. Charlotte’s seminars were informative and the trade show was great because it gave us the ability to see products and talk one on one with vendors all in one place.” Pitman’s description sums up the goals for every convention and exposition in recent years: interesting destination city, activities authentic to the venue, worthwhile seminars, the largest exposition of auto recycling vendors, and more. Most importantly, ARA conventions provide attendees a place to meet with other recyclers where you might discover that the things that occur on a daily basis in your business happen to everyone. Opportunities to problem-solve those situations and discuss improving business in general arise in the hallways, the hotel lobby, the tradeshow hall, the social gatherings, and other places. You have to be there to experience the magic that happens with all this business building activity. Words cannot describe the potent concoction created through networking and information gathering. Magical Moments “I have to say that I have never been to an ARA convention that I didn’t come home with a renewed spirit, an appreciation of the value of networking, and an eagerness to implement in my business the things that I learned which will improve my business.” Keith and Molly Johnson, owners of A-1 Johnson Auto in Billings, Montana, started attending ARA conventions when Keith took over from his father as president of the company. His parents, Curtis and Karen Johnson, had been attending ARA conventions since the 80’s. Keith faithfully continues to attend every year while his wife, Molly and their parts manager, Spencer DeBuff, take turns each year. “I like the seminars because I’m working in the business daily,” said Molly Johnson. “I usually don’t attend that many of the spouse tours for that reason. At the Charlotte convention last year, I especially enjoyed the seminar on NMVTIS and found it really helpful to hear from the actual Justice Department agent working with it. “The trade show is also very good and worth going to. Each year vendors have come up with something new for us to look at and consider for our yard. We’ve also gotten to know people from all over, even as far away as England. It’s fun to visit with them and hear how things are in their part of the world. It is definitely well worth the money to attend. We always have a great time and learn something new.” Jack Sumner, Al’s Auto Salvage and Sales in St. Louis, Missouri, started attending ARA conventions because of the trade show ten years ago and was not disappointed. He has returned every year since. “I go to the ARA convention every year and I really enjoy the trade show the most,” said Jack Sumner. “It seems that all the companies that provide services to our industry are all together in one place and I’ve been able to find things that are useful for our business. There seems to be more vendors every year and you really get to put your finger on the pulse of the industry as a whole. I would recommend going if July-August 2012 | Automotive Recycling 27 Tuesday, October 23rd Friday, October 26th Noon – 5:00pm 1:00pm – 6:00pm 7:30am – 5:00pm 8:00am – 8:50am ARA Registration Open Annual Golf Tournament (Celebration Golf Club, seen at left) Wednesday, October 24th 7:00am – 5:00pm 8:00am - 9:50am Tentative Convention Schedule (subject to change) All functions will be held at Gaylord Palms unless otherwise noted. ARA Registration Open Scholarship Foundation Meeting Educational Foundation Meeting Affiliate Chapters Meeting 10:00am – 11:30am Government Affairs Committee Meeting Electronic Commerce Committee Meeting 11:30am – 1:00pm Past Presidents Luncheon (by invitation only) 1:00pm – 2:30pm Technical Advisory Committee Meeting Gold Seal Committee Meeting Regional & At Large Directors Meeting 2:40pm – 3:45pm Airbag Committee Meeting C.A.R. Committee Meeting Events Advisory Committee Meeting 6:30pm – 9:00pm Yard Tour & BBQ (GreenStar Auto Recycling) Thursday, October 25th 7:00am – 5:00pm ARA Registration Open 8:00am – 10:00am Annual Membership & Board of Directors Meeting 10:15am – 11:05am Today’s Challenges/Tomorrow’s Opportunities 11:15am – 12:05pm Automotive Recycling: A Global Perspective Skills Training: Workplace Safety Collision Repair: Business with Standards 12:05pm – 1:00pm Lunch (on your own) 1:00pm – 1:50pm E-Commerce Collision Repair: Keys to a Profitable Partnership Warranty Claims Management Family Network 2:00pm – 2:50pm I-CAR and Automotive Recycling: Part I Capitalizing on e-Commerce with eBay Motors Car Computers: Adapting Business for Results China: Vehicle Movement from the U.S. Market 3:00pm – 3:50pm I-CAR and Automotive Recycling: Part II Cores Session C.A.R. Gold Seal Unified Accreditation Web Platform A Visual World: Effect of the Internet on our Industry 4:00pm – 4:50pm Expanding, Modifying or Selling Your U-Pull-It Yard Secrets of Engagement Marketing The Anatomy of Training Future Vehicle Developments & Impact on the Auto Recycling Industry 5:00pm – 9:00pm Past Presidents Reception and Exposition Opening 28 Automotive Recycling | July-August 2012 ARA Registration Open Self Service Session Advanced Car Design: Be Prepared The Anatomy of Training Automotive Recycling: A Global Perspective 9:00am – 9:50am Used Tires as a Cash Crop The Perfect Blend: Electronic & Personal Relationships Recycled Parts Exporting Wells Fargo Insurance: Providing Value 10:00am – 10:50am How to Sell More, Manage Smarter, Grow Your Bottom Line and Have a Life Donald Cooper 2012 Industry Profile Report 11:00am – 12:15pm True Success: The Art of Achievement in Times of Change - Tom Morris 12:15pm – 1:00pm Lunch (on your own) 12:15pm – 1:00pm LARA Luncheon Meeting 1:00pm – 5:00pm Exposition Open (with dessert service) 6:30pm – 9:30pm ARA Awards Dinner and Gavel Passing & ARA Educational Foundation Magical Mystery Tour (FUNdraiser) Saturday, October 27th 7:30am – 3:00pm ARA Registration Open 8:00am – 11:30am Exposition Open (with breakfast service 8am – 9:30am) Noon – 12:50pm Design By and For Women Capitalizing on e-Commerce with eBay Motors Efficient Handling & Shipping Advanced Car Design: Be Prepared 1:00pm – 1:50pm The Future of the Interchange Self Service Session: Family Owned Batteries: Part I Buying Session 2:00pm – 2:50pm The Cost of Bad Customer Service Batteries: Part II Safety Vision Critical - Donald Cooper 3:00pm – 3:50pm Secrets of Selling Green Recycled Parts™ Utilizing Bidding Systems for Maximum Efficiency Skills Training: Workplace Safety Build Profits through Accountability and Entrepreneurship 6:00pm – 8:00pm ARA @ NASCAR Sports Grille/ Universal CityWalk Dress Code Educational Session & Exposition: Business Casual Friday Evening Awards Dinner: Business Attire Yard Tour & BBQ: Casual you’ve never been for many reasons – we use information from the seminars and the fellowship with other recyclers is great! I’m not a NASCAR fan but the race last year was great and fun to experience.” Kenny and Burgundi Carr of Van Gorp Auto Recyclers in Oskaloosa, Iowa, attended their first ARA convention last year in Charlotte. “Last year was our first convention and we learned a lot and had a lot of fun,” said Burgundi Carr. “We’re a small business and we found the seminars very educational. I was able to take information from the sessions and apply it to our business, especially information from the safety seminars. The convention really gave us a better overall view of the industry. The trade show was also great and we got to meet everyone. We plan to return this year!” When: October 24-27, 2012 Where: Gaylord Palms Resort and Convention Center Hotel: Gaylord Palms Resort and Convention Center 6000 W. Osceola Parkway Kissimmee, FL 34746 Phone: (407) 586-6338 Reservations: (407) 586-2000 Reference A-ARA12 when making hotel reservations Rate: $189 single/double Visit www.araexpo.org and click on the Hotel Reservations link under the Hotel & Location Tab to secure reservations or call (407) 586-2000. Hotel Cut-Off Date: Monday, September 24, 2012 The room rate cut-off date only applies to availability. Travel: Flights should be scheduled into Orlando International Airport (MCO). Hotel magic he backdrop for this years’ convention is the Gaylord Palms Resort and Convention Center. What better location to experience the magic than sunny Orlando, surrounded by the beauty the property provides, and experiencing all ARA has to offer under one roof! Sun-drenched and spectacular, Gaylord Palms Resort and Convention Center brings excitement to life through world-class restaurants, dynamic on-site recreation, and breathtakingly beautiful gardens under glass. Their signature atriums recreate three Florida environments, immersing you in the sights and sounds that make the Sunshine State a top vacation destination. From the gently rising mists of the Everglades, to the funky and vibrant island revelry of Key West, to the Spanish-infused, old-world charm of St. Augustine, you'll delight in these unique Florida-themed settings. All convention meetings, educational sessions and tradeshow activities will take place under one roof! T 30 Automotive Recycling | July-August 2012 The convention really gave us a better overall view of the industry. The trade show was also great and we got to meet everyone. Quality Control These auto recyclers and many others know the value and fun of attending ARA’s yearly conventions. The Automotive Recyclers Association’s 69th Annual Convention and Exposition promises to be no less of a success. The beautiful Gaylord Palms Resort & Convention Center in Kissimmee, Florida, serves as the host hotel, on October 24-27, 2012. “We are working hard every year to enhance the quality of this event,” said ARA CEO Michael Wilson. “We have assembled top-notch speakers, focusing on boosting your daily bottom line, as well as providing you with the tools needed to achieve long-term success. This year’s sessions are targeted and focused on the topics that automotive recyclers have requested. Some of these topics will be exclusive to ARA’s convention and you will not hear them anywhere else.” ARA President Randy Reitman agrees that the annual convention provides a unique opportunity for recyclers to network and gain valuable industry information that will directly affect their business. “ARA conventions are important because they give recyclers a chance to meet people and put a face to a name or voice and to learn about what’s new in the industry,” said Reitman. “You are always going to take something back with you. I would urge recyclers to come, owners and staff alike, because it’s important to stay up-to-date with the industry. The information you gather while at the convention, whether during the seminars, networking with other recyclers, or at the trade show, will help keep you on track.” Serious Business and Even More Serious Fun The Automotive Recyclers Association’s 69th Annual Convention and Exposition will tee off on Tuesday, October 23, with the annual Golf Tournament to be held this year at the Celebration Golf Club in Orlando. Co-designed by Robert Trent Jones and his son, Robert Trent Jones, Jr., it has received a national reputation as the #1 golf event venue in Central Florida. Built on scenic natural wetlands, the course provides players with a genuine golf experience. (Rental clubs will be available). Free time on Tuesday evening offers you the chance to explore the many restaurants, venues and theme parks that Orlando has to offer. Wednesday presents a full day of ARA Committee meetings where the real business of the Association takes place as volunteer ARA members continue to work toward the betterment of our industry. If you are not on a committee, attendees are invited to sit in on any of the meetings and discover all the “behind the scenes” activity of ARA – and you might even decide to join one! 32 Automotive Recycling | July-August 2012 On Wednesday evening, Neil Harrow and his team at GreenStar Auto Recyclers (pictured left) host a Yard Tour & BBQ. Recyclers will be treated to GreenStar’s brand new state-of-the-art Orlando facility and find out how they are making the most of their limited amount of space. Harrow says they are pleased to host the tour for fellow recyclers and there will be plenty of good food, heavy equipment demonstrations and networking opportunities. “We’re excited to have fellow auto recyclers visit our new three acre facility because after spending 35 years in auto recycling, I firmly believe this yard represents the future of auto recycling in the United States,” said Harrow. “The yard is small, environmentally sound and very efficient. It’s been open for just under a year and I feel that we’ve accomplished quite a bit and would like to share that achievement with other recyclers.” After a night of exploring GreenStar and its impressive facilities, Thursday starts off with ARA’s Annual Membership and Board of Directors meeting. Attendees will get the opportunity to hear what ARA has been doing on behalf of auto recyclers and hear from committees on pertinent issues that affect their business. Following the board meeting, ARA provides a magical lineup of educational sessions sure to be worth your while – and even more sessions are offered this year than last, some exclusive to ARA. Over forty educational sessions include such topics as: “Workplace Safety,” “Recycled Parts Exporting,” Orlando attractions There is so much to do in Orlando that you are sure to find something for every member of your family. Orlando has it all – Walt Disney World, Sea World and Universal, where the newest feature, The Wizarding World of Harry Potter™ delivers exciting rides (seen at right), shops, and dining, and plenty of magic! Then, there are museums, golf courses, restaurants and more. You will be spoiled with all the choices. One of the hottest attractions is Discovery Cove, a water park of tropical proportions (see www.discoverycove.com for details). Promising no crowds or turnstiles, Discovery Cove is a place where you and your family can touch and swim with dolphins, wade with mysterious rays, snorkel among thousands of exotic fish, hand-feed tropical birds in a free-flight aviary and relax on pristine beaches. This is an all-inclusive day resort experience that’s one of a kind. A Dolphin Swim Day Resort Package includes: A reserved 30-minute dolphin interaction; Snorkeling with thousands of tropical fish and rays in The Grand Reef; Hand feeding exotic birds in a free-flight aviary; Relaxing on pristine beaches; Floating along our scenic Wind-Away River; Freshly prepared breakfast and lunch, unlimited snacks, drinks and select alcoholic beverages; Lockers, sunscreen, snorkel gear, changing facilities; All day self parking at Discovery Cove; 14 days of unlimited admission to your choice of SeaWorld Orlando, Aquatica Orlando or Busch Gardens Tampa. Hint: Make reservations early – it books fast! Here are some unusual activities to consider while you’re in Orlando: • Wonderworks/Outta Control Magic Show www.wonderworksonline.com/orlando • The Holy Land Experience www.holylandexperience.com • The World’s Largest McDonald’s www.vacationsmadeeasy.com OrlandoFL/pointsOfInterest/WorldsLargestMcDonaldsinOrlandoFL.cfm • I Fly Orlando (indoor skydive) www.iflyorlando.com/ ifly-indoor-skydiving • Jack Kerouac House http://kerouacproject.org/see-thekerouac-house • Showcase of Citrus www.showcaseofcitrus.com • Gatorland www.gatorland.com • Harry P Leu Gardens www.leugardens.org July-August 2012 | Automotive Recycling 33 Thursday, October 25th Emeril’s Cooking Class $55 adults (only) Cost includes transportation, cooking class and 3-course lunch at Emeril’s or those not interested in attending the educational seminars, Thursday, Oct. 25 offers you a unique and exciting way to experience a three course lunch at Emeril’s Orlando Restaurant – through cooking classes! Emeril's Orlando Restaurant, owned and operated by Chef Emeril Lagasse, encompasses everything Chef Lagasse stands for: high energy, bold exciting flavors and an unforgettable dining experience. The Chef De Cuisine will instruct your class, which will last about ninety minutes. During this time the Chef will conduct a live cooking demo in which he explains, in detail, all food preparation and execution. After each course is completed, you will enjoy the food as prepared by their award-winning kitchen. All participants are provided with full menu descriptions. Following your culinary experience, you will have ample time to explore the Universal CityWalk area. Participants should return to the bus at 2:00pm for return to the Gaylord Palms. F Friday, October 26th Winter Park Tour $30 adults/$22 children 11 & under Cost includes transportation, admission to the Boat Tour and to The Morse Museum iscover a hidden gem among the bustling tourism of Orlando. Cobble stone streets are adorned with boutique shops, sidewalk cafes and even more prominent offerings such as Ann Taylor, Pottery Barn, etc. On your way, catch a glimpse of Park Avenue where you will see the stores and restaurants and can begin D planning your afternoon. Your fun begins with the Winter Park Scenic Boat Tour. Located on Lake Osceola, the boat tour offers hour-long, guided cruises through three of the seven lakes and two, narrow manmade canals on the tranquil Winter Park chain of lakes. On any given tour, participants may observe large cranes swooping waterside to snag a large fish or a lazy alligator languishing on a nearby bank. Every tour guarantees plenty of swaying palms, towering cypress trees, lush ferns and a variety of flourishing sub-tropical flowers. Breathtaking views of opulent private homes and exquisite estates sprawling along the shores are also a key feature of the scenic cruise. (If you're not a boat fan, you may begin your shopping experience during the boat tour.) Then, you’ll be transported to The Morse Museum, internationally known for its collection of the works of American artist and designer Louis Comfort Tiffany (1848 – 1933). Alice Cooney Frelinghuysen, curator of American decorative arts at the Metropolitan Museum of Art, has called it “the most comprehensive and the most interesting collection of Tiffany anywhere.” Spend time in the museum or venture back onto Park Avenue for your shopping and dining enjoyment. 34 Automotive Recycling | July-August 2012 The expo has consistently proven to be an invaluable opportunity to collaborate with industry experts. “The Future of the Interchange,” “Selling Recycled Parts on eBay,” “Secrets of Engagement Marketing,” “Used Tires as a Cash Crop,” and more. See page 28, or visit www.araexpo.org for a complete updated list schedule. Thursday evening brings a favorite event of convention attendees, the Past Presidents Reception and Exposition Opening. The party kicks off three days of opportunity to meet with your current vendors and discover new products and services from soon to be new vendor friends. BASF is one of ARA’s new exhibitors. Allen Dale Fisher, BASF Corp. Global Tolling Manager says, “BASF sees the ARA as part of our strategy regarding automotive catalytic converter recycling. We are looking to give the automotive parts suppliers and dismantlers a direct option for refining with BASF, which also produces the catalysts that go into the converters. This allows us to close the recycling loop and help ensure a more sustainable future. Automotive catalytic converters are one of the largest users of platinum group metals (PGMs), accounting for more than half of the world’s annual PGM mining output. When an automobile is scrapped, the precious metal contained in the catalytic converter can be recycled, creating a secondary supply source for the production of new catalysts.” Hollander has been faithfully attending ARA’s exposition for many years and will once again be a sponsor of the Annual Convention, marking their fourth year as a Diamond sponsor. Mary Moberg, Marketing Manager, says they are thrilled to support the industry. “The annual meeting is a very important event for Hollander because it allows us to network with the leaders in the recycling industry, as well as introduce clients and prospects to our innovative new products,” said Moberg. “The expo has consistently proven to be an invaluable opportunity to collaborate with industry experts. It also gives us the privilege to support the Association as well as work with the ARA.” Dimitri Gerontis, S3 Software Solutions, the makers of CRUSH Self-Service Auto Recycling System, agrees that the ARA annual convention and exposition has helped their business immensely. “I love the ARA Convention because it raises awareness towards the trend for U-Pull-It yards and that helps us directly,” said Gerontis. “We have been coming for three years and are always making great connections and sales at the convention.” Friday offers more information, discovery, and net- Ones to Watch Keynote Speaker – Tom Morris, PhD Friday, 10/26/12 @ 11:00am – 12:15pm One of the most active public philosophers in the world due to his unusual ability to bring the greatest wisdom of the past into the challenges of the present, Tom Morris’ latest book, True Success: A New Philosophy of Excellence, launched him into a new adventure as an advisor to the corporate world. Dr. Morris’ work has been featured, noticed, commented on, or covered by diverse news outlets, many magazines, newspapers, and websites across the globe. Honored as an “Distinguished Young Alumnus Award” of the University of North Carolina – Chapel Hill, Dr. Morris holds a Ph.D. in both Philosophy and Religious Studies from Yale University, as well as other, honorary doctorates in recognition of his public work. SpeakerProfile – Donald Cooper, MBA, CSP, HoF Donald Cooper doesn’t just talk about it; he has been both a world‐class manufacturer and an award‐winning retailer. Cooper Canada became the world’s leading maker of hockey equipment and a Canadian brand icon, employing over 2800 people. Then, as a visionary fashion retailer, Cooper created an entirely new business model and redefined the customer experience, for which he received seven Awards of Excellence for marketing and business innovation. An inductee into the Canadian Speaking Hall of Fame, he has been awarded the Certified Speaking Professional designation, the highest international designation in professional speaking. July-August 2012 | Automotive Recycling 35 working with sessions, exposition time, a keynote session, and finally the ARA Awards Dinner and Gavel Passing that rounds out the day’s activities. The Ladies of the Automotive Recyclers Association (LARA) luncheon, also on Friday, is open to all women – recyclers, spouses, and vendors – to gather for more discussion on how to dynamically impact the industry from a woman’s perspective. “LARA is important because we bring out the other side of the team by putting an emphasis on the ladies who go to work every day as recyclers,” said Fran Reitman, a LARA leader. “This year, we are launching a spin-off to LARA – a family-owned business networking group,” Reitman continues. “Many recyclers are family-owned businesses and this group embraces that by involving everyone – sons, daughters, cousins, anyone involved in the business that is in the family. We will share ideas and have educational seminars targeting family networking and succession of the family business.” In addition to the educational seminars and the LARA Luncheon on Friday, the Exposition Hall re mains in full swing Friday afternoon, so recyclers can continue their visits with vendors. The ARA 36 Automotive Recycling | July-August 2012 Annual Awards Dinner and Gavel Passing caps off the evening and features the recognition of industry pioneers, contributors, and achievers – as well as FUNdraising during the Educational Foundation’s Magical Mystery Tour, and live auction. Although the last day of the convention and exposition, Saturday promises more great educational sessions, such as, “Computers: Adapting Business for Results,” and “Competing for Customer Loyalty.” It will be recycler attendees’ final opportunity to meet with exhibitors, learn of their products and services, as well as to build new business relationships. Grand Finale Saturday evening, attendees are offered the opportunity to participate in a private event at the NASCAR Sports Grille located at Universal CityWalk at an additional cost of $65 adults and $40 children (11 & under), above convention registration fees. Traveling in style aboard deluxe motor coaches, partakers of this fun activity will be dropped off at Celebrity Circle at Universal’s CityWalk. Delectable dining in ARA’s private area, Victory Hall, is on tap for the evening, and step outside to Victory Veranda to see the excitement of one of Orlando’s top tourist areas – CityWalk. Attendees will also receive 2-hours of unlimited play in the Speedzone Gameroom and final hours to chat with their friends. Following ARA’s private event, each attendee will receive a wristband granting complimentary access to CityWalk clubs. (Visit www. citywalkorlando.com for a listing of all activities.) For those wishing to return to Gaylord Palms, there will be transportation back to the hotel with the last bus departing at 9:00 p.m. Those who decide to explore the excitement of CityWalk a little longer will be responsible for their own transportation back to the Gaylord Palms. Magic in Your Hands As you can see, this event promises a lot of activity for all. Attending will surely inspire you to go to the next level, whatever you determine that will be. For more information on ARA’s 69th Annual Convention and Exposition, check out www.ara expo.org often for updates. There you can find additional information on educational sessions, spouse tours, off-site activities, sponsors, exhibitors and more. We’ll see you in Orlando! ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. July-August 2012 | Automotive Recycling 37 Focus on SAFETY Safe A new ARA Safety Committee, established in April, aims to educate members on how to provide a safe workplace for their employees and ensure that their facilities meet the regulatory requirements of the U.S. Occupational Safety and Health Administration (OSHA). The committee, chaired by Immediate Past President, Doug Reinert, is made up of twenty members from over ten different states. It includes auto recyclers with businesses of ten to over 100 employees, as well as environmental and safety consultants and directors, a regional director and an affiliate representative. iStockphoto.com/gobyg “We’re finding that to become OSHA compliant and safety conscious doesn’t take a lot of money, but it takes some time,” said Doug Reinert, Safety Committee Chair. “The Safety Committee is not only giving more information on regulations but providing solutions and safety tips as well. Sometimes it can seem daunting to recyclers to think about taking on some projects that might take three months to complete, but we’re finding that many things can be done in two weeks or less, or even in one day.” 38 Automotive Recycling | July-August 2012 Mode ARA’s newest committee is dedicated to keeping you fine-free. By Michelle Keadle-Taylor The Safety Committee has been very active since its inception with bi-weekly telephone conferences. It has made great strides in educating committee members on the requirements of OSHA and helping them understand why they are being fined, how to work with OSHA to possibly reduce the fine, and how to resolve and prevent the problem from happening again. “During our first meeting we discussed ARA’s historical safety efforts and we did an overview on current-day OSHA,” said Betsy Beckwith, ARA’s staff liaison supporting this committee. “Since that meeting we have agreed that our committee will be sending out our own version of the top ten safety violations that OSHA records for automotive recycling facilities, along with safety tips on how to avoid them.” The committee communicates regularly with ARA University(ARAU) Managing Director Ginny Whelan who promptly added 15 OSHA 30-hour safety courses to the current courses available through ARAU (www.arauniversity.org). These courses cover the top ten violations plus more. They are also developing a new safety database that will be populated with the safety managers, not necessarily the owners of the business, and are working with the C.A.R. program to make sure its safety manual includes a page stating OSHA requirements and links to our tips and information as well as to other websites that could help a recycler resolve the problem. Another task facing the Safety Committee is utilizing various media to get the information out to as many safety managers as possible. The committee plans to put the top ten safety tips in newsletters, email blasts and other sources of media to keep the information before recyclers on a continual basis, not just for 30-90 days. “We’ve got a great committee with a variety of members and industry consultants and we are looking to get the information out to the affiliates as well,” said Reinert. “Some of this need for more information is driven by OSHA, but so much of it ties back to business insurance and safety plans. As you train your staff and get them involved implementing various safety and OSHA requirements you build employee confidence in your commitment to their safety. You also reduce workers comp and business insurance claims while continuing to become more OSHA compliant one day at a time. “I would like to encourage everyone to read the articles we send out via e-mail and in Automotive Recycling magazine,” says Reinert, “keeping an open mind as we seek to provide not only the protocols but solutions to them. We are also seeking vendors to help us to meet regulations, using ARA’s BizUnite discounts.” ■ You can also reduce workers comp and business insurance claims. Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. July-August 2012 | Automotive Recycling 39 Focus on SAFETY ARAU New 30 Hour Safety Courses Helps Combat OSHA’s Top Ten List Aerial Lift Safety Back Safety Bloodborne Pathogens Electrical Safety Shock Proof Hearing Safety Hoist and Sling Safety Hot Work Safety Intro to OSHA Lockout/Tagout Machine Guarding Process Safety Management Safety Orientation Walking/Working Surfaces Welding Safety Go to www.arauniversity.org for details. 40 Automotive Recycling | July-August 2012 2011 LKQ Citation Hot List FORKLIFTS/ORDER PICKERS LOCKOUT/TAGOUT AIRBAGS HAZ/COM CRANE/HOIST/FLOOR LIFT EQUIPMENT SAFEGUARDS FIRE PROTECTION ELECTRICAL GENERAL PREMISIS HEARING CONSERVATION ADMINISTRATIVE C.A.R. Safety Standards 1) Utilization of basic personal protective equipment including gloves, hard hats, safety shoes, safety clothing, safety shields and goggles, when required. a. Personal Protective Equipment (PPE) also requires written PPE plan 2) OSHA approved 15-minute eye wash station(s) readily accessible near corrosive materials (i.e. battery storage, processing, and recharge areas). a. Annual written Emergency Eye Wash Protection Plan & logged inspection b. Grainger gives ARA discount (they distribute best hard-plumbed model) 3) Readily available, appropriately typed, and fully charged fire extinguishers. 4) Company will administer and sign the C.A.R. Torch-use Education & Orientation Protocol prior to an employee’s use of a cutting torch. 5) A properly stocked first aid kit that is in close proximity to the dismantling areas, and is adequately sized for the number of employees in that area. 6) Adequately sized Spill Kit(s) are available in close proximity to the storage and/or removal areas of the fluids listed in the environmental standards section of this application. 7) Self-Service facilities have posted safety reminders for customers. 8) A safety program in which a particular individual is in charge of regularly scheduled safety meetings and safety inspections. Name of safety supervisor must be listed on the front of this application. Data in the Cloud W ith the economic recession somewhat behind us, markets are poised for growth yet again. As fast-growing companies achieve greater market penetration and gain more customers, they face the challenge and opportunity of expanding to new locations and efficiently growing their business. They must be able to effectively manage their sales teams and channels and improve back-office efficiency, while ensuring high levels of service for customers. iStockphoto.com/pressureUA The benefits of running your business on the latest trend in computing and what to look for in a cloud provider. Part 1 July-August 2012 | Automotive Recycling 41 Focus on iStockphoto.com/LevKing TECHNOLOGY To take advantage of these opportunities, companies need to assess whether their existing business applications footprint for accounting, sales, service and other functions will effectively support the growth of the business. Many businesses that started out with ad hoc, standalone applications will determine they need to upgrade to a more flexible platform to support continued growth. Cloud computing is a compelling option for many small and mid-sized businesses (SMBs), as well as larger enterprises, as it offers low cost of entry and ownership and faster time to market compared to traditional on-premise business software and servers. According to IDC, software-as-aservice (SaaS) solutions are set to grow six times faster than all software, and they’re expected to show compound annual growth (CAGR) of around 26 percent through to 20141. Organizations that opt for a cloud strategy face an additional consideration – whether to use individual cloud systems for key processes such as finance, customer relationship management (CRM), and e-commerce, or use an integrated suite that covers those functions and more. It’s important to recognize that while the cloud model resolves many problems of on-premise software, cloud applications as standalone silos can introduce inefficiencies, integration challenges, and IT and administrative overhead of their own. The Risk of Fragmentation with Cloud Silos Without integration among cloud applications, business users may still be forced to navigate multiple applications and data repositories of data for their everyday activities – slowing down processes and reducing the agility the company needs to grow. Consider the following implications of siloed cloud applications: • If multiple cloud applications are implemented, data fragmentation still exists. Overlapping data1 Source: IDC: Worldwide Software as a Service 2010-2014 Forecast: Software Will Never Be the Same 42 Automotive Recycling | July-August 2012 bases must be consolidated and reconciled to create a comprehensive and consistent view. In effect, the on-premise software hairball has simply been transferred to the cloud. • Each application has its own style of configuration. User efforts to adapt the software to their needs can be hampered as they try to keep track of multiple methods of configuration. • Getting a comprehensive picture of how people are using the software is difficult because multiple applications must be monitored. • End-to-end processes are difficult to manage because they must be integrated across multiple applications and databases. Advantages of Integrated Cloud Applications To avoid these limitations, it is essential to have a collection of cloud applications that are integrated around a single codebase and database, and which contain an integrated business process perspective. Characteristics of such a system include: • Enterprise Resource Planning (ERP), CRM, human resources, e-commerce, warehouse management, project management, and customer service applications function atop a shared application stack and database. • Business processes easily flow from one application and department to another – from sales quote to order, or from procurement to final vendor payment. • A single repository for real-time reporting enables everyone to see a shared view of the business – no need for an expensive data warehouse. • Self-service analytics and reports can easily be customized and extended. The underlying platform can be easily customized to the needs of the business and its industry, and enables the application to evolve as the business changes. An integrated cloud business suite also improves IT productivity compared to siloed cloud solutions: • Expanded awareness: Ease of information access means that everyone can get the information they need without continually making IT requests. • Process efficiency: Process automation flows from department to department across applications built to work together, eliminating the need for expensive and error-prone application integration work. • Accelerated innovation: Because information and process changes can be implemented quickly, often by users themselves, line of business organi- zations are able to innovate themselves rather than depend wholly on IT. • Business and IT alignment: Data and process automation can be easily delivered when and where it is needed, unfettered by technical limitations. Best Practices for Running Your Business in the Cloud What is lost in many discussions of cloud computing is the notion of how fixing the problems with the on-premise deployment model does nothing to address the challenges of integration, improving process automation, and providing unified, consistent information. To gain the maximum benefits of cloud business management, companies in the SMB space need a single cloud system that integrates ERP functionality with CRM, HR, and e-commerce. Such a system should support business user customization and promote process efficiencies and the alignment of IT with business needs. It should also supply real-time reporting and analytics for expanded awareness, and a world-class data center featuring strong disaster recovery and data security capabilities. Let’s examine each of these areas. User-Driven Innovation and Customization: The power to customize should not only be in the hands of the IT department. A cloud solution that empowers everyday business users to tailor applications to their needs allows users to apply their business function expertise. Meanwhile, IT staff is liberated to focus on innovation and strategic initiatives that can add value to the bottom line. Business Application Development Platform: With a single cloud customization platform, IT departments can quickly build innovative, end-toend business applications. Customers should also have available a vendor-sponsored network of complementary third-party applications to enrich and extend cloud applications. Importantly, the cloud vendor should be able to carry forward any customer-made customizations as it rolls out upgrades to its suite, with no re-engineering or manual effort required. July-August 2012 | Automotive Recycling 43 Focus on iStockphoto.com/andylin TECHNOLOGY Process Efficiency: Empowering users leads to efficiency as well as innovation. When users can change the way they work directly, without having to wait in line for IT to do everything for them, business processes run faster and smarter. Studies show that customers migrating from unintegrated legacy and custom accounting systems and moving to one central accounting system can expect to accelerate financial close times by 20%-50%. Automating processes enables companies to eliminate or redeploy staff and avoid new hires. For example, one company required a full-time person who did nothing but print out labels for merchandise as salespeople entered orders. Integration between CRM and inventory management applications eliminated the need for the position, saving the company $25,000 a year. Another company used a cloud inventory management application to increase inventory turns by 50%. This also freed up cash that was tied up in non-performing inventory. Aligning IT with Business Needs: In most companies, the line to get help from IT to change business applications is so long that people give up trying. Only the biggest ideas with the biggest payoffs make it worth enduring the wait and expense. But as the lean manufacturing principle of kaizen has shown, huge gains can be made from making many small improvements. In the best cloud models, IT staff can devote their time to improving the business, rather than trying to solve integration and other headaches. IT shifts from being an interchangeable commodity to a differentiator. Reporting and Analytics for Expanded Awareness: Real-time business intelligence is important in making informed decisions. You can instantly 44 Automotive Recycling | July-August 2012 look at metrics from many sources – the number of hits to your website, the number of orders placed, or the current bank balance. This information can be accessed instantly from almost anywhere, with no extraction cycle. The result: expanded awareness of important information. When staff is better informed, they make better decisions. In traditional ERP systems, getting a single view of a customer is a major undertaking that might involve several databases and a business analyst, consultant, or a special software product. Many companies invest in elaborate systems to collect data from applications nightly or weekly to create a single data warehouse for reporting and analysis – almost always an extremely costly and complex undertaking. The better, more efficient option is to have a unified and consistent database. This allows employees to do a single search on a customer and see what they are buying, how much they paid, and their order status. This information should be available to the front-line staffers who need this information in real time. The Benefit of a World-Class Data Center One of the biggest benefits of using a cloud vendor is its ability to provide customers with a worldclass data center that meets the highest standards of reliability but also are so secure that companies can confidently present a broader face to the Internet and include partners and customers as users of business applications. Clients are understandably concerned about data security. Knowing that their business success depends on this, the best cloud providers have processes and procedures in place to ensure secure client data. Before selecting a cloud solution, ensure the vendor has undergone independent reviews to validate its processes. Key certifications to look for include: • SAS 70 Type II. Make sure your vendor fully complies with SAS 70 Type II standards. This indicates that the American Institute of Certified Public Accountants or its designees have conducted an in-depth audit of the vendor’s controls and safeguards. When cloud customers are audited, they can provide a SAS 70 Type II Service Auditor’s Report to the auditor as a substitute for auditing your cloud vendor’s controls and procedures. Without SAS 70 Type II compliance, companies are likely to incur additional costs because they must send auditors to the cloud vendor to analyze controls and procedures. • EU-Safe Harbor compliant. U.S.-EU Safe Harbor is a key process for U.S. companies operating in Europe. It certifies that companies comply with the EU Directive 95/46/EC on the protection of personal data. The seven Safe Harbor Principles are designed to prevent accidental information disclosure or loss of consumer data. Cloud providers should also adhere to the Safe Harbor Privacy Principles published by U.S. Department of Commerce with respect to personal data about individuals in the EEA that the vendor receives from our subsidiaries, customers and other business partners. • PCI Data Security Standard. PCI Data Security Standards for consumer data govern security management, policies, procedures, network architecture, software design and more. Established by firms such as Visa and American Express, these standards are continually refined and strengthened, and companies can lose PCI certification if they fail to meet requirements. Some cloud ven- dors provide 3D Secure credit card authentication, also known as Verified by Visa and MasterCard SecureCode. These standards are beyond the reach of most on-premise providers, but the best cloud providers have PCI certification. Auditing and certifying these levels of compliance is simply too onerous for most companies that operate in-house ERP systems. Disaster Recovery and Business Continuity Cloud computing vendors should understand that they cannot simply ask their customers for trust. It is important to plan for the worst-case scenario. Such planning is the domain of disaster recovery and vendors should provide a variety of options to prevent disasters and to provide business continuity if disaster strikes. • Infrastructure: The best cloud systems are architected with multiple layers of redundancy to ensure service continuity even if one or more elements fail. All data is stored immediately in multiple locations, with daily hot backups to ensure July-August 2012 | Automotive Recycling 45 Focus on TECHNOLOGY Yes - or No? you are technologically inclined, you surely have heard of cloud computing as it becoming rampant in the market today. Many business owners find it cost effective and that is why those who are into it are growing in numbers. In case you are not yet aware, cloud computing is the use of online-based services to support various business processes. However, before you finally decide to use cloud computing, it would be nice to first be aware of its pros and cons. If The different types of Cloud Computing Before we proceed on to the pros and cons of cloud computing, let us first familiarize the different types of it. Cloud computing comes in three different categories, which include the following: • Infrastructure-as-a-service – this service is offered to users so they can have Remote Control Software on their computers without the need to purchase servers, software, data center space, and network equipment. • Platform-as-a-service – this is the type where vendors provide and manage the operating system, database and all that are needed to run a particular platform. • Software-as-a-service – with this type, users need not to purchase software licenses because the vendor will provide it. Cloud Computing Pros Cloud computing has various benefits that users will definitely love. A few of these benefits include: • Cost Reduction – cloud computing can reduce the paperwork, transaction cost, hardware cost, and IT staff. • Scalable – like electricity, water and pay-as-you go phones, some cloud computing services are billed based on the amount of usage. Therefore, you only pay for what you really use and can easily upgrade your service without having to make costly additions to hardware or software. • Right level for the right size of business – cloud-computing services are available in small and mid-sizes. This will reduce cost on software licenses like remote control software as well as server cost. • Easier to collaborate – with cloud computing PC Remote Access is also possible. Meaning, users can access anywhere, anytime, thus can be collaborated with remote employees. Cloud Computing Cons Despite the numerous advantages, there also some disadvantages for cloud computing. A few of them are: • Availability – cloud service can be down at times, which could affect users a lot more as programs run on the server rather than on each individual workstation. • Data mobility and ownership – once decided to cut the serviceHealth Fitness Articles, users are not sure if they will get their data back • Privacy – users are unaware how the collected data will be used. — By Phillip Presley 46 Automotive Recycling | July-August 2012 quick data restoration in case of emergency. In addition, all customer data is backed up on tape media daily and stored in a safe facility. Data centers are equipped with backup power batteries and generators, seismic bracings, and an Internet connection of up to three 1 Gbps pipes. This redundancy ensures round the clock connectivity with no bottlenecks; in fact, with this design, two pipes could fail with no impact on users. • Application security: Any cloud system should be designed to be safe from Internet attacks. All servers should be protected by a firewall that allows access only via specific protocols and methods. It should be securely designed with segregated networks, load balancers, denial of service countermeasures and application-layer filters. All transactions should be protected by 128-bit SSL, the same strong encryption used by large banks and ecommerce companies. • Physical security: Access to the facility. • Advanced disaster recovery: In rare cases, customers may require exceptional safeguards outside the scope of the cloud vendor’s data integrity models, such as dedicated redundant hardware or replication of data to a client’s remote data center. Cloud vendors should arrange to provide such safeguards for such companies. Conclusion For rapidly growing and mid-sized businesses, the resources required to maintain and grow an IT infrastructure to support the needs of the business can be enormous. Cloud computing is often seen as a cost-effective and quick-fix solution, but businesses must be careful not to repeat the same mistakes of the past and end up with another applications hairball, albeit one running in the cloud. With the growth of cloud computing, businesses must take a strategic long-term view of their application footprint – understand how applications and business processes cross departments and lines of business, and optimize their applications architecture around collaboration and process. By combining an integration applications strategy with cloud delivery, businesses can position themselves for efficient and cost-effective growth, and improved competitiveness. ■ NetSuite is the world’s leading provider of cloud-based business management software. NetSuite helps companies manage core business processes with a single, fully integrated system covering ERP/financials, CRM, e-commerce, inventory and more. www.NetSuite.com © Copyright NetSuite 2011. All rights reserved. Find out more, contact NetSuite, Inc. at 1-877 NETSUITE. International AUTO RECYCLING Global Opportunity Rising CARS and IRT prove that it is a small world of auto recycling. By Andy Latham O iStockphoto.com/Maksim Pasko/v0lha ver 700 delegates from all over the world arrived in Liverpool for the CARS Show, featuring the International Roundtable on Auto Recycling. Guests from Japan, Malaysia, Australia, India, Brazil, United States, Canada, Europe, and the UK enjoyed Lancashire hospitality, which included food, drink and, of course, plenty of rain. The international visitors were treated to a tour of the JCB World Headquarters. JCB – a UK success story as one of the world’s top three manufacturers of construction equipment – began in 1945 with one product, and is now a multi-billion dollar business, producing over 300 different models. With factories all over the world, they employ over 10,000 people, yet is still family-owned and operated. They served as the main sponsor of the CARS Show. Once the tour and equipment demonstration was complete at JCB, they moved some of the vehicles used to Hills Salvage and Recycling Ltd., where the CARS Show was being hosted for the weekend, in order that they could be further used for demonstrations. Attendees explored the indoor exhibition area, the outside main demonstration area, where vehicles could be seen being de-polluted, crushed, or head into in the ‘big boys toys’ arena, where cars were literally being pulled apart by Overtons Auto Dismantling System. Every now and then, a loud bang was heard as Autodrain fired another airbag with their deployment tool and the sounds of wheel crushers separating wheels and tires was heard almost constantly. Combilift lost count of how many times they re-arranged the same three cars on their racking system. Training seminars gave attendees many opportunities to hear some of the most knowledgeable people in the industry speak about fuel safety, electric and hybrid vehicle dismantling, profit, sales, green parts and much more. The trade show was supported by July-August 2012 | Automotive Recycling 47 International AUTO RECYCLING over 50 of the biggest names in the industry, including Manitou, Vortex Depollution, SEDA, Green Car Depollution, Crowe Environmental, Actual Systems, Car-Part. com and others. Views from the show. 48 Automotive Recycling | July-August 2012 World Talks The International Roundtable held two sessions during the event, receiving news and updates from country representatives and industry specialists. It was during the country reports that perhaps the most memorable comment came. Captain Mohan Ram, representing India, spoke about his country’s desire to have a full end-of-life vehicle industry, explaining that India has many producers of vehicles, but very few businesses that take vehicles out of use. It was very clear that all the countries represented are facing similar issues back home: lack of enforcement, poor legislation, and too many illegal operators who drive salvage values up. As an industry, the need to take a stand locally, nationally, and internationally to eradicate these undesirable activities is imperative, and failure to do so will impact all genuine law abiding auto recycling businesses. No one could achieve this individually, rather a collective effort from many is needed to make a difference. The specialists reports to the IRT included Paul Fox of EGARA, who highlighted how auto recycling could change in the next 10 years, and Anja Tomazic from GM Europe who spoke about the information that man- ufacturers give to assist auto recyclers dismantle vehicles, and focused on the Vauxhall/Opel Ampera (Chevrolet Volt) and its recycling potential in 10 to 12 years. Steve Fletcher from Automotive Recyclers of Canada graciously accepted the request to chair the IRT meetings, and also provided an overview of the Canadian Auto Recyclers Environmental Code. Minoru Gouku from Japan presented a short video that showed the effects of the Tsunami in 2011 and the combined efforts of so many businesses and individuals to clean up the affected areas. The whole meeting was very quiet and hushed as this video played, reflecting on the devastating toll this natural event took on people, families, and communities. Social Highlights The organizers wanted to give everyone plenty of opportunity for networking and relaxation. Friday evening found most of us sheltered from the rain and enjoying food and entertainment. The live band was enjoyed by many – especially after England beat Sweden in the Euro 2012 soccer championships. That same evening, an auction raised over £10,000 for our chosen charities, and by the end of the event other fundraising activities boosted that figure to nearly £14,000. Football (i.e.; soccer) was the focus of our attention as we ended the weekend at Anfield, the home of Liverpool Football Club. The evening started with a tour of the grounds followed by a meal and dancing to Imagine, The Beatles, an excellent tribute band that was enjoyed by over 150 delegates and guests. This was the first time that a show of this type has ever been staged in the UK; one of the aims of the organizers was that it must be beneficial to the Auto Recycling industry. From the following e-mail we received, we think we got it right. Dear Andy & the CARS Team Just wanted to congratulate you on the success of the CARS event. It was fantastic to see the industry being pulled together from all dimensions. The event gave us a good opportunity to explore and compare new equipment while proving a great networking opportunity. The seminars I managed to attend were also invaluable, hearing from such knowledgeable figures in the industry, which really made me step back and evaluate the way in which we operate our business. We left the show with a complete buzz not only from what we had learn, but of what we wanted to achieve. Thank you so much and congratulations once again. The hard work really paid off! I must also pay tribute to Ian Hill and all the staff at Hills Salvage and Recycling Ltd. who hosted the event and worked so hard to clear and clean the space for the show. They had to move over 900 motorbikes to clear the indoor arena – erecting stands, hanging banners, cleaning, sweeping, and then emptying bins, welcoming delegates and guests, and serving food and drink during the show, all the time wearing a smile. Every visitor commented on the quality of the yard, the operation, and the staff, and those that were able to get on the yard tour raved about the operation that Ian has built, a facility that is possibly the best in the UK, and certainly matches some of the best around the globe. Please allow me to finish with the one word e-mail that was received from Steve Fletcher. Brilliant! ■ Andy Latham is Compliance Manager for Bluecycle, one of the UK’s leading online salvage auction and auction technology specialists. They have been trading for over 10 years and specialize in car salvage, end of fleet, motorcycle, plant, equipment and commercial salvage, selling hundreds of vehicles each week throughout the world. Andy is a motor vehicle engineer who has been working in the industry for 33 years, starting as an apprentice, moving into senior management before joining the UK’s biggest insurer and subsequently Bluecycle. July-August 2012 | Automotive Recycling 49 Spotlight on EXCELLENCE Brothers Auto Parts The Right Parts, The Right Price, Right Now! By Michelle Keadle-Taylor B rothers Auto Parts, ideally located on 15 acres within the city limits of Indianapolis, Indiana, had its beginnings as a story of two brothers working side by side to own and run successful auto body repair shops. Today that story continues with a son and a nephew who are as close as brothers, working side by side as a successful family business to conquer the hurdles facing the automotive recycling industry one by one. First, some history. Carl Johnson and his brother, Jerry Johnson, started Brothers Body Shop, an auto body repair shop in 1957. Their business grew and eventually they owned and managed three shops. Carl began working in the body repair business when he was 16 years old. After many years of running several big body shops he decided to sell the shops to a large consolidator in order to try something different, and entered into the auto salvage business. “I was tired of working in the same business for all of those years,” said Carl Johnson. “I thought since the auto salvage was somewhat related it would be easy, which was not the case.” Carl purchased a previously-owned salvage yard on the west side of Indianapolis and Brothers Auto Parts was established in 1986. Three years later, he bought an additional location within the city limits. He suc- 50 Automotive Recycling | March-April 2012 cessfully ran both locations for several years before selling the first location. Currently, the Brothers Auto Parts location houses three main buildings. The newest, built in 2001, features a dismantling bay, and a small parts storage and inventory bay. Brothers Auto has 25 employees and a local delivery radius extending throughout the entire state of Indiana into western Ohio, eastern Illinois, stretching into the Louisville, Kentucky area, as well. Carl’s son Jeremiah joined the family business in 1998 and is now the General Manager, responsible for purchasing inventory. “Growing up, I would work at the yard during every summer and school break and Dad used to make me pick up bolts and trash in the yard,” said Jeremiah. “I have done just about every job here except disman- tling. After attending college for a year and a half, I realized it was an incredible opportunity for me to get involved in the business in a more prominent way.” Jeremiah’s nephew, Branden Ashburn, joined the team six years ago after graduating from college. After college he managed a large auto reconditioning company and brought that valuable experience to Brothers Auto. “Branden plays a key role in the business,” said Jeremiah. “He’s like a brother to me — we are close in age, as well. He helps run the business and is an outstanding sales manager.” Carl reportedly tried to retire to Florida – but that lasted only about three months – so he is still actively involved in the business and runs loaders and does deliveries, as well as gives input into the overall direction of the business. “I like to draw off my Dad’s experience,” said Jeremiah. “It would be foolish to not listen to him after the success he has had with his businesses over the years. Yet, he still definitely lets me make mistakes from time to time so that I learn from them.” What could have been considered a challenge for some small auto recyclers became a turning point for Brothers Auto according to Jeremiah. “With buyers groups and consolidation becoming more popular, it prompted us to differentiate our- Brothers Auto Parts team (left to right): Branden Ashburn, Carl Johnson and Jeremiah Johnson. A view of the yard, above. selves,” said Jeremiah. “We’ve always been on the cutting edge of change – we were the second yard in Indiana to install Hollander way back in the eighties. So, it gave us an opportunity to develop and strengthen our business even further. We kept improving on quality, using ARA damage codes, and improving our inventory database.” According to Jeremiah though, their most pivotal decision was to join with other yards to create a network of strong partners and thus increasing their March-April 2012 | Automotive Recycling 51 Spotlight on EXCELLENCE access to quality inventory as well as their ability to compete with the big consolidators on delivery times. Brothers Auto became a PRP Midwest member five years ago, back when it was still called QRP. PRP Midwest is now linking into PRP Northeast’s network which expands Brothers Auto’s coverage and buying power into the Northeast and Mid-Atlantic region. “By joining with other auto recyclers we create a much bigger force than on our own,” said Jeremiah. “If I can buy a part from Connecticut and deliver it in two days, that makes my business all the more competitive. In a day and age when it is getting tougher and tougher to find quality salvage, it is vital that we network with as many recyclers as we can to be able to meet our customers’ demands. Brothers Auto has built its business around not saying “no” to customers and our partnering with other recyclers has allowed us to buy quality parts for them.” 52 Automotive Recycling | July-August 2012 When it comes to challenging moments in Brothers’ history, Carl, Jeremiah, and Branden each have their own view. For Carl, undoubtedly some of the most challenging times were getting the yards started and growing it into a successful family business. For Branden it’s been developing the sales team to reflect the changing times. “The most challenging part in our history has been to evolve our sales staff into being more professional,” said Branden. “Back in the day you could just tell the customer, “We have the part you need, so come and get it.” Now we have to have great customer service and bend over backwards for our customers, or they can simply call someone else. I have enjoyed this challenge and feel like we currently have a great sales staff.” For Jeremiah, the most challenging part of the business now and in the future is finding good quality salvage. As the one who is in charge of buying inventory, his greatest concern is securing good salvage and seeing cars retired and not put back on the road when they shouldn’t be. “I think we need a strong advocate in Washington D.C. and all of us recyclers need to put more money into backing such efforts,” said Jeremiah. “The seri- ous issues such as procurement of inventory need someone lobbying on our behalf, which is where the efforts of ARA come in.” Finding quality salvage is one part of staying competitive in the future, and staying competitive is what Branden feels Brothers Auto’s biggest challenge in the future will be. “The most challenging part in our future is going to be to continue to find ways to separate ourselves and do things better than our competition,” said Branden. “Talking with other owners and managers at conventions is a vital part of keeping up with competition and accomplishing this goal.” As they look to the future, Brothers Auto knows the importance of joining other auto recyclers and working together to strengthen not only their own businesses, but the industry as a whole. As for the near future, particularly this summer, they look forward to developing their customer relationships. “We are continually building our relationships with our customers,” said Jeremiah. “I give local boy scout groups a yard tour several times a year and we do monthly promotions. Several times a year we do customer raffles where we have given away race tickets, gift cards, meals, and even cruises. During the summer all of our delivery trucks carry a large cooler and we give away drinks at all of the stops. We go through lots of Gatorade and soft drinks during the summer heat!” ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. July-August 2012 | Automotive Recycling 53 Certified News Gold Seal Program LIKE THIS PAGE! www.facebook.com/GoldSealAutoRecyclers Approved Gold Seal Participants A & P Auto Parts, Inc. A-1 Auto Recyclers AAA Auto Salvage, Inc. ABC Auto Parts & Sales, Inc. Aberdeen Used Cars & Parts 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 Automotive Parts Solutions B & B Auto Parts & Salvage, Inc. B & B Auto Salvage, Inc. 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. 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. Car World, Inc. Carcone’s Auto Recycling Central Auto Recycling, Inc. Centre De Recyclage Universel (1981) Ltee. 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 Freeman’s Auto Salvage Center, Inc. Goyette’s, 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.C. Auto & Truck Parts Jantz’s Yard 4 Automotive, Inc. Jerry Brown Auto Parts Center, Ltd. Jerry Carney & Sons, Inc. John’s Auto Parts Junior Sinn Auto Parts, LLC Kadinger’s II Kadinger’s, Inc. Kadinger’s, Inc. Kelly Auto Parts Kirchhayn Auto Salvage, Inc. Lacy Auto Parts, Inc. Lecavalier Auto Parts, Inc. 54 Automotive Recycling | July-August 2012 Cicero Rapid City Rosemount Blue Island Aberdeen Albuquerque Louisville Fontana Columbus Trevose Sterling Heights Rockville Oklahoma City Rapid City Waukesha Corvallis East St. Louis Wisconsin Rapids Fairdale Green Bay Wilder Chicago Brookside Bow Indianapolis Bomoseen Pensacola Roseville Campbell Hall Milwaukee Candia Aurora Syracuse Val D’Or Cocoa W. Columbia Kingsville Weston Dumfries Decatur Denton Fond Du Lac Binghamton Watertown Fountain City Whitesboro Ft. Wright Joplin New Bedford Grand Prairie Sussex Billings Hickman Trenton Monroe City Kenosha Queensbury Ames Blaine Cape Girardeau Barron Cadott Downing Faribault Cedarburg Charles City Ste.-Sophie NY SD MN IL NC NM KY CA OH PA MI MN OK SD WI OR IL WI KY WI KY IL NS NH IN VT FL CA NY WI NH ON NY QC, CAN FL SC MO WI Scotland IL TX WI NY NY WI NY KY MO MA TX WI MT KY TN MO WI NY IA MN MO WI WI WI MN WI VA QC, CAN Lewis Auto & Truck Parts LKQ Advanced Auto Recycling LKQ Auto Parts of Central Texas LKQ Auto Parts of North Texas, LP LKQ Auto Parts of South Texas LKQ Midwest Auto Parts LKQ of Michigan, Inc. LKQ of Nevada, Inc. LKQ of New Mexico LKQ of Southern California LKQ Potomac German Auto LKQ Preferred LKQ Smart Parts, Inc. LKQ Star Auto Parts, Inc. LKQ Triplett ASAP, Inc. 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. 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. Viking Auto Salvage 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. Topeka Cumberland New Braunfels Hutchins Houston Omaha Wayne North Las Vegas Albuquerque Santa Fe Springs Frederick Conway Hustisford Janesville Akron Holland Kitchener Stafford Valparaiso Kansas City Fort Erie KS RI TX TX TX NE MI NV NM CA MD AR WI WI OH MI ON VA IN MO ON, CAN Plantsville Kalamazoo Edgerton 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 Northfield Springfield Waterloo Goldsboro Grand Rapids Laurel Webster Midlothian Perry Effingham CT MI WI 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, CAN PA OH NY CT TX IA MN OH IA NC MI DE NY VA MO IL Certified News Certified Automotive Recycler (C.A.R.) Program Approved C.A.R. Participants 43 Auto Salvage A & A Auto & Truck Parts, Inc A & A Auto and Truck Parts, Inc. (North) A & C Auto Parts & Wrecking Co. A & T Auto Parts, Inc. AAAACO Auto Parts, Inc. 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 Alvin’s Automotive Recycling American Auto Parts American Auto Recycling Auto Parts City, Inc. B & M Cars & Salvage Bauer’s Auto Wrecking Bill’s Auto Parts, Inc. Bill’s Used Parts, Inc. 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. Camp Auto Salvage Central Small Car Salvage Chuck’s Auto Salvage, Inc. Clayton Auto Parts & Wrecking, Inc. Colorado Auto & Parts, Inc. Compact Auto Parts 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 Eagle Auto Parts, Inc. East Bay Auto Parts, Inc. Economy Auto Parts Eden Used Auto Parts, Inc. Elgin Super Auto Parts and Sales, Inc. Fireside’s U-Pull It Auto Parts Five J’s Auto Parts, Inc. Foreign Car Parts, Inc. Fox Auto Parts, Inc. G & R Auto Parts, Inc. Gary’s U-Pull-It, Inc. Geiger Truck Parts, Inc. Glenn’s Auto & Truck Parts Green Point Auto Parts, Inc. Higgins Auto Wrecking, Inc. Hillsboro Auto Wrecking Hi-way Auto Parts Hi-Way Auto, Inc. Horsehead’s Automotive Recycling I-55 Auto Salvage J & J Auto Wrecking, Inc. J & R Auto Recyclers, Inc. Jeff Smid Auto, Inc. Joplin Topeka Topeka Cleveland Hyde Park Lorton Sun Valley Iowa City Marshalltown Anderson Fredericksburg Woodside Oakland Omaha Gilbert Gurnee Sulphur Springs Fresno Cumberland Christianburg Dighton Bowie Brandywine Brandywine Brandywine Oilville Mechanicsville Barberton Brandywine Douglassville Clayton Englewood Brandywine Bayville Troy Mobile Antigo Blandford Tulsa Cleveland Owensboro Courtice Eagle River Coldwater Amarillo Forest Martinsburg Interlochen Tulsa Eden Elgin Sandusky Albuquerque Upper Marlboro Belleville Oklahoma City Binghamton Watseka Houston Brewer Bakersfield Hillsboro Tyler Brownwood Elmira Channahon Marshallville Cedar Springs Iowa Falls MO KS KS OH NY VA CA IA IA CA VA NY CA NE AZ IL TX CA RI VA MA MD MD MD MD VA VA OH MD PA OH CO MD NJ VA AL WI NS, CAN OK OH KY ON, CAN WI MI TX VA WV MI OK MD IL OH NM MD MI OK NY IL TX ME CA OR TX TX NY IL OH MI IA Jerry’s Auto Salvage, Inc. Keiffer Auto Recyclers Knox Auto Parts & Rebuildable Wrecks Kress Auto Wreckers 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 Auto Parts of Utah, LLC 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 Foster Auto Parts of Salem LKQ Foster Auto Parts, Inc. LKQ Gorham Auto Parts Corp. LKQ Hunts Point Auto Parts Corp. LKQ Melbourne LKQ Michael’s Auto Parts, Inc. 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 Help Your Self LKQ Pick Your Part Stanton LKQ Pick Your Part Sun Valley LKQ Pick Your Part Wilmington 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 Manuel’s Auto Wrecking Marco Auto Recycling, Inc. Massey’s Auto Parts, Inc. McDill Auto Wrecking, Inc. Metro Auto Recyclers Metro Auto Salvage, Inc. Middleton Auto Parts Milliron Auto Parts, Inc. Misgen Auto Parts, Inc. Newton Auto Salvage, Inc. Big Lake Canton Knoxville Hazle Township Rahway Doon Ringoes Winston-Salem Worcester Ardmore Harrisville Duncan Blue Island Phoenix Jenkinsburg Springville Nampa Traffon Redmond Stuyvesant MN OH TN PA NJ IA NJ NC MA AL OH SC IL AZ GA UT ID AL OR NY Bradenton FL Clearwater FL St. Petersburg FL Tampa Crystal River Salem Portland Gorham Bronx Melbourne Orlando Topeka Albert Lea Redding Bakersfield Ft. Myers Plainfield Fayetteville Manchester York Haven Anaheim Bakersfield Chula Vista Wilmington Stanton Sun Valley Wilmington Aurora Webster Salisbury Savannah Holland Kalamazoo Daytona Beach Memphis Merced Red Wing Millington Stevens Point Valparaiso Lakeville Fraser Mansfield Ellendale Covington FL FL OR OR ME NY FL FL KS MN CA CA FL IN AR TN PA CA CA CA CA CA CA CA CO MA NC GA MI MI FL TN CA MN TN WI IN MN MI OH MN GA July-August 2012 | Automotive Recycling 55 Certified News Certified Automotive Recycler (C.A.R.) Program Approved C.A.R. Participants Continued Newville Auto Salvage, Inc. Niks Auto Parts, Inc. Nissenbaum’s Auto Parts, Inc. North Verde Auto Salvage Ole South Auto Salvage, Inc. P & C Auto Wrecking, Inc. Pacific Auto Salvage, Inc. Pat’s Auto Salvage 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 Pull-A-Part Lafayette Pull-A-Part Louisville Pull-A-Part Memphis Pull-A-Part Mobile Pull-A-Part Montgomery 56 Automotive Recycling | July-August 2012 Edgerton Neenah Somerville Ontario Lake Placid Milpitas American Canyon Waterloo Cedar Springs Akron Lithonia Norcross Conley Augusta Baton Rouge Birmingham Canton Charlotte Cleveland Cleveland Columbia Indianapolis Jackson Knoxville Lafayette Louisville Memphis Mobile Montgomery WI WI MA OR FL CA CA IA MI OH GA GA GA GA LA AL OH NC OH OH SC IN MS TN LA KY TN AL AL 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 Richard J. Cassidy, Inc. dba Interstate Auto Parts 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 Shipman Auto Parts, Inc. Smith Auto & Truck Parts, Inc. Smith Auto Parts & Sales, Inc. Snyder Auto Body & Paint Southern Maryland Used Auto Parts Swift’s Auto Salvage, Inc. Van Horn Auto Parts, Inc. Vander Haag’s, Inc. Vander Haag’s, Inc. West Auto Wreckers, Ltd. Xtra Mile Truck Recyclers Nashville New Orleans Winston-Salem Brandywine Melbourne Rhinelander Tioga Center Upper Marlboro Lucama Moffett Pleasanton Jacksonville Valdosta Lowell Mason Virginia Brainerd Garden City Fairfield Clarinda Mechanicsville Des Moines Mason City Des Moines Spencer Chula Vista Phoenix TN LA NC MD KY WI NY MD NC OK CA FL GA MA MI IL MN KS IA IA MD IA IA IA IA CA AZ International Auto Recycling Reports from Around the World Evolution of the Car and Auto Recycling By Andy Latham, Bluecycle, UK ou only have to look at the Euro NCAP (which provides motoring consumers – both drivers and the automotive industry – with a realistic and independent assessment of the safety performance of some of the most popular cars sold in Europe) or Insurance Institute For Highway Safety (IIHS) crash tests over the past 15 years to see how car design has changed; vehicles tested in the late 90’s would fold and crumple, sometimes with disastrous results for the dummies inside. Fast forward 10 years and the same test on a brand new vehicle would see those dummies shaken but undamaged. The credit for this must go to car designers and engineers who have been able to build much stronger vehicles and make them lighter at the same time. The metals used in vehicle bodyshells is becoming more exotic – aluminum and ultra high strength steels to name two – along with the joining methods – bonding, riveting and laser welding – are becoming commonplace techniques that the vehicle repair industry needs to replicate. This advance in technology makes vehicles more expensive to repair, technicians need more training, the equipment used must be of the highest quality and standard, and the parts will cost more to purchase. So there is the possibility of more vehicles not being repaired by insurance companies. A lot of these exotic metals cannot be repaired using the traditional methods that many auto recycling yards know and understand. In many cases these structural parts of the vehicle need to be replaced in full rather than being sectioned. Why? Sectioning and welding generates heat Y Owners and their families enjoy what they do. They are entrepreneurs who will take each challenge as an opportunity to change and grow. that can reduce the strength of the panel and if the vehicle is involved in another accident at a later stage, the panel may not perform as it is designed to, resulting in structural damage to the passenger safety cell. Bonding and joining techniques can also be critical for the structural integrity of the vehicle, mix the bonding agent incorrectly, or use the incorrect quantity, and the panel may not hold into place. The problem being, you do not know about the fault until the panel is placed under stress, and this could be during an impact. Changing direction slightly, electronics are playing an ever more important role in modern vehicles, from stability control, to active cruise control that regulates the distance between your car and the vehicle immediately ahead of you, lane departure warning that uses cameras to monitor the white lines in the road and so-on. It is entirely feasible that in a few years time a 7-year-old car could be obsolete because the electronics are not at the same standard of a brand new vehicle – so it has suddenly become endof-life. All of the above will drive change and result in a very different auto recycling industry than the one we know today. More vehicles will be stripped down into component parts and recycled, fewer parts will be retained for sale to repair other vehicles, and the traditional pulla-part could be almost extinct. But I strongly believe that the auto recycling industry will evolve, adapt, and change and still be a sustainable business in 10, 20, even 30 years time. The owners and their families enjoy what they do. They are entrepreneurs who will make sure their businesses move forward and will take each challenge as an opportunity to change and grow. One thing is certain though, the only way individual businesses are going to successfully manage the coming transition is to work together within a strong trade organization that: • Gives members the opportunity to share and develop ideas. • Represents all members at local and national government. • Supplies technical & legal information. • Has specialized expertise in areas of environmental permitting, planning, health and safety etc. • Provides preferential members-only site insurance schemes. • Gives guidance on achieving recycling targets. • Sets up specialized training programmes (technical competence, part worn tires, airbag deployment etc.). • Has connections to dismantlers in Europe, USA & Asia. • Has an advice help-line at the end of the phone. So wherever you are in the world, look towards your national auto recycling organization for help and assistance, join in and work alongside some of the best brains in the business so that your company can develop, grow and profit now and in the future. ■ Andy Latham is Compliance Manager for Bluecycle, one of the UK’s leading online car salvage auction sites and online auction technology specialists. They have been trading for over 10 years and specialize in car salvage, end of fleet, motorcycle, plant, equipment and commercial salvage, selling hundreds of vehicles each week to customers throughout the UK and Europe. July-August 2012 | Automotive Recycling 57 Capitol Connection From ARA’s Government Affairs Congressional Highlights E ARA Comments to OMB on Federal Use of Private Standards he U.S. Congress is locked in negotiations on the House and Senate versions of the bill titled, Moving Ahead for Progress in the 21st Century (MAP-21 – S. 1813 and H.R 4348). Among other very contentious provisions, the bill includes improvements to the existing national vehicle recall database under the National Highway Traffic Safety Administration (NHTSA). Specifically the bill requires that motor vehicle safety recall information is: ARA seeks modification • available to the public on the Internet; • searchable by vehicle make and model and to the section that vehicle identification number; would allow batch • in a format that preserves consumer privaccess “at no cost” to acy; and, • provided for every recall that has not been this information by completed for each vehicle. third-party entities. The bills also provide for a rule to require each manufacturer (with respect to that manufacturer’s motor vehicles) to provide the information detailed above “at no cost on a publicly accessible Internet website.” ARA and other stakeholders seek modification to this section that would allow batch access “at no cost” to this information by third-party entities. Negotiations, both on the bill and with NHTSA on the rulemaking process, are progressing. ince 1998, the U.S. Office of Management and Budget (OMB) has directed federal agencies to use technical standards that are developed or adopted by private entities as a means to carry out policy objectives and activities. OMB is requesting input from stakeholders on whether the process by which the private standards are accepted needs updating given the changes in the marketplace. ARA focused on the need for agencies such as the U.S. Environmental Protection Agency (EPA) to better explain its rationale for use of certain private standards. ARA provided three specific examples related to proposed guidance memoranda and regulations on stormwater permit measurements, solid waste definitions, and the sale of used catalytic converters, where the standards used to carry out policy did not appear to reflect an understanding of the automotive recycling industry. ARA also took this opportunity to comment that the federal use of many private standards is seen as anticompetitive and negatively affects small businesses. ARA noted that it often appears that the interests of small businesses are ignored during this process, especially when federal agencies accept biased position statements of large businesses as if they were actual standards that should be followed by entire sectors of specific industries. ARA strongly urged OMB to establish a formal protocol on how all stakeholders can be involved in the standard consideration and adoption process. ARA further noted that many of these private standards are not readily available and often are quite costly. ARA recommended that OMB develop a mechanism to remove the financial barriers to access of many industry sector-specific standards promoted by private entities and adopted by federal agencies. ven as the Congress and federal agencies are mired in issues laden with political baggage, ARA has been busy on both the legislative and regulatory fronts advocating for its members on topics including appropriations for NMVTIS, amendments to the recall database, review of federal use of private standards, and revising FTC’s Used Auto Parts Guide. Outside of Washington, D.C., and in your neighborhoods, ARA is helping your state associations with issues related to buyers at salvage pools, titling provisions affecting end of life vehicle management, metal theft recovery protections, and right-to-repair options. Although most of the state legislatures have adjourned, much advocacy and education work remains to be done in specific states on our issues. Read below for a snapshot of the issues that ARA is working on. Amendment Sought to the National Vehicle Recall Database in the Highway Safety Bill T ARA Requests NMVTIS Language in Fiscal Year 2013 Commerce, Justice, Science Appropriations Conference he U.S. House of Representatives has approved the fiscal year 2013 Commerce, Justice, Science (CJS) Appropriations bill (H.R. 5326), which funds the Department of Justice’s agencies for the next fiscal year. Unfortunately, there is no language in the Department of Justice section that specifically addresses ARA’s request to implement targeted funding mechanisms for the National Motor Vehicle Titling Information System (NMVTIS). ARA efforts to get either legislative or report language are now focused on the Senate which has yet to take up its version of the CJS bill. ARA staff will be contacting you for your assistance if your facility is represented by a member on the Senate CJS Appropriations Subcommittee. Look for updates on NMVTIS legislative funding. T 58 Automotive Recycling | July-August 2012 S ARA Opposes Ohio SB 273 FTC Reviews Used Auto Parts Guides n early May, ARA CEO Michael E. Wilson joined colleagues from the Ohio Automobile and Truck Recyclers Association (OATRA) and LKQ to visit members of the Ohio General Assembly to voice automotive recycler’s strong opposition to SB 273, which would allow unlicensed in-state buyers and non-equivalent licensed out-of-state buyers to purchase vehiSTATES ON THE MOVE cles from salvage pool auctions. In fact, several groups of Ohio automotive recyclers met with key members of the General Assembly to educate them on the issue and suggest questions to ask of the supporters of this bill at the proponent hearing. Arguing that the bill threatens automotive recycling businesses and the jobs they provide while not creating any new jobs, automotive recyclers blanketed the state house and educated many policymakers on the negative effects that SB 273 would have on Ohioans. Efforts to fight this bill will continue throughout the summer, until Election Day, after which SB 273 is expected to be brought up for consideration in a lame duck session. he U.S. Federal Trade Commission plans to do a periodic review of the “Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry” (Used Auto Parts Guides), and will address the cost, benefits, and regulatory and economic impact of the Used Auto Parts Guides. The Guides, says the FTC, seek to prevent unfair or deceptive acts or practices in the advertisement and sale (including installation) of previously used motor vehicle parts and assemblies of parts containing used parts (e.g. engines and transmissions). In 1962, the Commission first addressed the industry when it issued its Trade Practice Rules for the Rebuilt, Reconditioned, and Other Used Automotive Parts Industry. In 1979, these rules were rescinded and replaced with the “Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry” (Used Auto Parts Guides or Guides). The Guides were revised in 2002 with minor language changes and updates to the list of commonly rebuilt or reused parts and assemblies. FTC is posing questions on which stakeholders can comment: the need for and the benefits of the guides; necessary changes; how changes would affect small businesses; costs imposed on consumers by guides; how guides should incorporate new consumer perceptions of industry products; and, disclosure of certain installation information and information flow in general. ARA will work with members to provide comments to FTC in a concerted and effective manner by August 3rd. ■ I Massachusetts Senate Passes “Right To Repair” he Massachusetts Senate has passed the Right to Repair Bill and sent it on to the House of Representatives mirroring the same action in the previous legislative session. The bill calls for auto manufacturers that sell vehicles in Massachusetts to provide access to their diagnostic and repair information system via a software system that is accessible by dealers and independent repair shops – beginning in 2015. What would not be included is security-related information. Supporters stress the savings and convenience of this bill not only to consumers, but also to repair shops and dealerships, especially in repairing a traded-in vehicle. A spokesman for the Massachusetts Right to Repair Coalition, Art Kinsman, said this bill would provide mechanics and car owners alike the ability to purchase all repair information, giving everyone more options for service. Kinsman and his organization have gathered enough signatures to ensure the measure will be on the November ballot if the Legislature does not pass the bill. T California Tax Gap Legislation Advances alifornia’s Board of Equalization (BOE) drafted Assembly Bill 2618 which would limit those who can purchase auction vehicles with a resale permit to licensed dismantlers, licensed dealers and scrap metal processors. All other buyers would be required to pay sales tax to the auction at point of sale. The BOE estimates that millions of dollars in tax revenue are being lost each year due to the large number of vehicles sold at auction that were never registered with DMV. ARA has offered its assistance to the State of California Auto Dismantlers Association (SCADA) to help ensure that this bill becomes law. C T 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 July-August 2012 | Automotive Recycling 59 Crossword Puzzle By Murray Jackson Across 1. Soccer mom’s ride, often 5. Suffix for uni, bi and tri 8. Harley-Davidson engine description (1,4) 9. Home of “Green Mountain State” plates 10. Killed the engine unexpectedly 11. Italian motor-scooter brand 12. Sealing device in engine 14. Jaguar-driving “Who’s the Boss” character 17. Final model on Olds assembly line 19. Urban commuter’s ride (4,3) 22. Barrett-Jackson classic-car sale 23. Power-boosting engine adjunct 24. Wheel shafts 25. Between-buckets component 60 Automotive Recycling | July-August 2012 Down 1. “Night ____,” Bob Seger’s ’60 Chevy song 2. Auto-industry output (3,4) 3. Once-popular roof covering 4. Home of “The Silver State” plates 5. Former Dodge version of 1-Across vehicle 6. Beer brand in “Smokey and the Bandit” semi 7. Surname, “CHiPs” motorcop actor Erik 12. ’75-’82 Ford intermediate 13. Press term for Ferrari, Lamborghini, et al 15. ’73 OPEC oil action 16. Tourist’s route description, perhaps 18. ’86-’94 Hyundai subcompact 20. Nissan’s competitor for Toyota Tundra 21. Bicycle-wheel component 2012 Industry Calendar 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 the most up-to-date calendar. July September 16-17 2012 ARA Legislative Summit Embassy Suites Hotel Nashville Airport 10 Century Blvd. Nashville, TN 37214-3675 (615) 871-0033 Betsy Beckwith (571) 208-0428 or (888) 385-1005 [email protected] www.a-r-a.org 5 Auto & Truck Recyclers of New Hampshire The Yard Restaurant 1211 Mammoth Rd. Manchester, NH 03109 6:30 PM Meets on first Wednesday of each month 19-22 2012 FADRA Convention & Trade Show Hilton Daytona Beach Ocean Front Resort Daytona, FL (866) 536-8477 Kim O’Dell (407) 647-8839 [email protected] http://fadra.org/contact.html 20 SIAM-Society of Indian Automobile Manufacturers New Delhi, India International Seminar on “Environmentally Friendly & Viable ELV Infrastructure” August 3-5 Pennsylvania Automotive Recycling Trade Society Marriott Lancaster at Penn Square 25 South Queen Street Lancaster, PA 17602 (888) 850-6146 for reservations Kay Klos (877) 211-0266 http://parts.org/convention.html 9-11 Car-Part.com Conference Elizabeth Johnson, Marketing (859) 654-0850 [email protected] For information, call (859) 344-1925 18 NM Certified Automotive Recyclers Association 2nd Annual Summit & Training Albuquerque Marriott Pyramid North 5151 San Francisco NE Albuquerque, NM 87109 (505) 821-3333 Sandy Blalock (505) 301-6849 [email protected] www.nmcara.com 11-12 CIECA 4th Annual Implementation Conference Chicago/Northbrook Hilton, 2855 N. Milwaukee Ave Northbrook, Illinois 60062 (847) 480-7500 Fax: (847) 480-0827 www.cieca.com Fred Iantorno (847) 498-6945 [email protected] Room Block and Discounted Rate will be open until August 25 12-15 State of California Dismantlers Association Harvey's Resort & Casino, Lake Tahoe, NV www.scada1.com 14-15 Ontario Automotive Recyclers Association (OARA) Mid Year Member Meeting Steve Fletcher (519) 858-8761 www.oara.com 21-22 Central Midwest Auto Recyclers Convention & Trade Show (CMARC) Dallara Indycar Factory Hilton Garden Inn Indianapolis Downtown Indiana & Illinois & Surrounding States Michelle Lechner (877) 880-2874 11-13 2012 Texas Auto Recyclers Expo and Trade Show DoubleTree by Hilton Hotel Austin 6505 IH-35 North Austin, Texas, 78752-4346 (512) 454-3737 Cheryll Lambright, Executive Director (800) 710-8272 24-28 ARA 69th Annual Convention & Expo Gaylord Palms Resort and Convention Center 6000 W. Osceola Parkway Kissimmee, FL 34746 Phone: (407) 586-6338 Reservations: (407) 586-2000 Attendees: Reference A-ARA12 when making hotel reservations Exhibitors: Reference A-ARAEX when making hotel reservations www.araexpo.org November 7 Auto & Truck Recyclers of New Hampshire The Yard Restaurant 1211 Mammoth Rd. Manchester, NH 03109 6:30 PM Meets on first Wednesday of each month Ad Index 1-800 Cash for Cars.................................................45 AA Midwest ...............................................................25 Actual Systems of America, Inc./Pinnacle .........43 Alter Trading Corporation.......................................17 Al-jon..........................................................................13 ARA University ..........................................................11 ARA 69th Annual Convention & Exhibition ........19 Brock Supply Co. .....................................................37 Car-Part.com..........................................................C-4 Company Wrench.....................................................29 Connection, The .........................................................5 CRUSH/S3 Software Solutions, LLC.....................36 Hollander, a Solera company ............................ C-3 Knopf Automotive ......................................................6 MarkingPenDepot.com...........................................59 OmniSource ..............................................................53 Pemberton ................................................................49 Phoenix Automotive Cores .....................................31 RAS .............................................................................35 Sierra International Machinery ..............................9 Supershear................................................................33 UNeedAPart..............................................................40 United Recyclers Group........................................C-2 Vander Haag’s, Inc. ..................................................61 Wells Fargo................................................................21 Get Ahead in 2012 Empowering Your Team To advertise, call Caryn Smith at (239) 225-6137 Answers from Puzzle on page 60 8-10 Automotive Recyclers Association of New York November 8, 2012 - November 10, 2012 Annual Convention Albany Nov. 29-Dec. 1 5th Asian Automotive Environmental Forum Hotel Chancellor Australia Gold Coast David Nolan (03) 9502-7513 [email protected] Register at www.autoenvironment.com.asia October December 3 Auto & Truck Recyclers of New Hampshire The Yard Restaurant 1211 Mammoth Rd. Manchester, NH 03109 6:30 PM Meets on first Wednesday of each month 5 Auto & Truck Recyclers of New Hampshire The Yard Restaurant 1211 Mammoth Rd. Manchester, NH 03109 6:30 PM Meets on first Wednesday of each month Send your 2012 events for the Industry Calendar to [email protected]. July-August 2012 | Automotive Recycling 61 Final Thoughts By Michael E. Wilson, ARA Chief Executive Officer [email protected] The Small World of Global Auto Recycling he automotive recycling industry is indeed going global. In June, several ARA members and I traveled to England to participate in the CARS 2012 event at Hills Salvage and Recycling Limited, a state of the art 12-acre facility approximately a half hour outside Liverpool in Skelmersdale. Nigel Dove, one of the show’s planners, expressed that the organizers sought to incorporate the best features of the ARA Convention & Exposition, “IT” and the ISRI Convention all into this event. The highly attended conference was considered a conduit to bring auto recycling sector leaders together to help move businesses forward. The CARS organizing committee included two of the United Kingdom’s leading auto recyclers Terry Charlton of Charlton Recycled Autoparts and Ian Hill of Hills Salvage and Recycling Limited, along with Nigel Dove of the depollution equipment manufacturer, Vortex Ltd., Andy Latham, Compliance Manager with Bluecycle, and Chris Floate, Editor of ATF Professional. Hill attributes their business success to years of consistent effort to evaluate various best practices from around the world and assessing the value of incorporating innovative methodologies. In returning to their respective businesses, I am sure each participant certainly will have something to bring back from the experience to improve their facilities business model. The CARS 2012 also played host to the latest edition of the IRT, the International Roundtable on Automotive Recycling. IRT participants from Australia, Canada, Japan, Malaysia and the United States highlighted an almost universal chorus of similar issues of concern during the twoday event. The huge number of vehicles leaving respective participant countries T 62 Automotive Recycling | July-August 2012 The team from Hills Salvage and Recycling Limited. and the volume of vehicles being handled by unlicensed/unauthorized operators topped the list of issues of continued unease. Representatives from India were also on hand for the first time to present and seek additional information as their country seeks to quickly develop an automotive recycling infrastructure to handle the enormous increase of automobiles and two-wheelers in the South Asian country. With a population of 1.2 billion, India’s automotive industry is one of the largest in the world, producing some 3.7 million units in 2010. According to the Society of Indian Automobile Manufacturers (SIAM), annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, India is expected to top the world in car volumes with approximately 611 million vehicles on their roadways compared to 40 million vehicles in 2010. As automobile manufacturers continue to consolidate their product lines and models, U.S. automotive recyclers should continue to experience similar issues that their colleagues are facing in other parts of the world. The world is truly becoming a smaller place with economic commerce exploding across international borders. By participating in events such as CARS 2012 and the IRT, industry leaders seek to learn more about and offer insight on the top issues affecting the global automotive recycling industry. ■ As auto manufacturers continue to consolidate their product lines and models, U.S. automotive recyclers should continue to experience similar issues that their colleagues are facing in other parts of the world. Automotive Recyclers Association 9113 Church Street Manassas, VA 20110-5456 USA