Inside... - Texas Automotive Recyclers Association
Transcription
Inside... - Texas Automotive Recyclers Association
September/October 2015 Inside... • Enough Said • Data Feeds • 2015 Halftime Report • 84th Legislative Session Wrap-Up • 30 Ways to Make Your Advertising More Productive and Affective • TARA Conference & Trade Show • Save the Date/TARA Cash Raffle/TARA Live Auction • “PAC” the Alley Bowling Tournament Info & Registration • Exhibitor Registration Form • Attendee Registration • What are You Going to Do When OSHA Comes Knocking? A Must Attend Session at the TARA Conference • Metal Market Recovery Next Quarter? The Texas Automotive Recycling Report TARA’S 2015 BOARD OF DIRECTORS Ronnie Patke, President Parts Unlimited, Inc. 17511 Pearland Sites Rd. Pearland, TX 77584 Phone: (281) 489-0990 Fax: (281) 489-3111 Cheryll Lambright, Executive Director TARA P.O. Box 842084 Houston, TX 77284-2084 Phone: (800) 710-8272 Fax: (713) 461-1515 James Cooley Jr., District 3 Director Hi-Way Auto Parts 2808 Hwy. 279 Brownwood, TX 76801 Phone: (800) 447-0611 Fax: (325) 646-5332 Bruce Ormand, Vice President A1 Partsmart PO Box 17998 Austin, TX 78760 Phone: (512) 243-2718 Fax: (512) 243-2850 “Hotrod” Banks, District 1 Director Box Auto Salvage 4209 E Highway 80 Midland, TX 79706 Phone: (432) 683-9200 Fax: (432) 683-2048 Randy Cunningham, District 4 Director Pick-N-Pull 11795 Applewhite Rd. San Antonio, TX 78224 Phone: (210) 628-1856 Fax:(210) 628-1194 Donnie Patke, Sec./Treasurer Parts Unlimited, Inc. 17511 Pearland Sites Rd. Pearland, TX 77584 Phone: (281) 489-0990 Fax: (281) 489-3111 Barry Rubin, District 2 Director American Auto Salvage Inc. 2567 Decatur Ave. Ft. Worth, TX 76107 Phone: (817) 335-3328 Fax: (817) 335-2711 Email: [email protected] Joe Luna, District 5 Director Nissan Unlimted/Y.E.S Unlimted 7230 Senate Ave. Houston, TX 77065 Phone: (832) 467-4400 Fax: (832) 467-4402 Tim Straney, Past President Glenn’s Auto & Truck Parts P.O. Box 925508 Houston, TX 77292 Phone: (713) 688-8905 Fax: (713) 681-5169 Publisher TARA retains the services of R.J. McClellan, Inc. Newsletter advertising opportunity inquiries should be directed to: R. J. McClellan, Inc. 445 Broadway Avenue #500 Ron McClellan St. Paul Park, MN 55071 Advertising Sales Phone: 651-458-0089 Sheila Cain Toll Free: 877-525-4589 Managing Editor Fax: 651-458-0125 Sheila Cain Email: [email protected] Layout & Design Mike Kunkel, Director-at-Large American Auto Salvage Inc. 2567 Decatur Ave. Ft. Worth, TX 76107 Phone: (817) 335-3328 Fax: (817) 335-2711 Executive Director Newsletter content and association membership inquiries should be directed to: Cheryll Lambright TARA Executive Director PO Box 3547 Galveston, Texas 77552 Phone: 800-710-TARA (8272) Fax: 713-461-1515 Email: [email protected] The Texas Automotive Recycling Report The Texas Automotive Recycling Report is published six times per year for the Texas Automotive Recyclers Association. None of the material in this publication necessarily reflects the opinion of TARA, its officers, directors, staff, members or its Publisher. Statements of fact and opinion are the responsibility of the author alone. Articles and letters suitable for publication will be published in the next scheduled newsletter as space permits. Articles may be edited for length. Throughout this issue, trademarked names are used. Rather than place a trademark symbol in every occurrence of a trademarked name, we state we are using the names only in an editorial fashion, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Mention of trade names, commercial products, or techniques does not constitute endorsement or recommendation for use. September/October 2015 4 ASSOCIATION NEWS A Letter From the Executive Director By Cheryll Lambright Enough Said I recently sent you a link to a commercial that Ford Motor Company did about salvage parts. If you did not watch it then stop at this point and do it now. http://www. takeagoodlook.com/auto-parts Don’t Read Any Further Unless You Have Watched The Ford Commercial Are you with me now…… YOUR MAD METER SHOULD BE OFF THE CHART RIGHT NOW. And I hope that your reaction to this blatant assault will be to create the same tenacity America captured after the attack on Pearl Harbor. Even Japanese General Yamamoto contemplated the error and said “I am afraid we have awaken a sleeping giant” In this case, The Sleeping Giant had better be us! Let’s navigate these traitorous waters and see what we can surmise from this direct assault on the used automotive recycling industry and your business personally. We should be used to being assaulted. There is a long list of entities both business and governmental that immediately perpetuate the idea that if somebody did something heinous or deceptive it would the salvage guys! But we are the used automotive parts recyclers--- we are not “One of those guys”! This Ford commercial directly targets the used automotive parts industry and in no subtle way. This industry has made more strides to qualify our industry to be a leader in addressing environmental, safety and recycling stewardships while providing products that meet an affordable standard for the consumer. Obviously, our industry is a threat to the big guys like Ford. They wouldn’t be wasting their time targeting us if there wasn’t a reason. And the reason is that, this industry, with the support of associations like TARA and ARA and members like you, who have raised the standards for all automotive recyclers, have been chipping away at their gravy train. In some ways, we have accomplished what we set out to do and that is develop “good” recognition. If you are wondering if the money you have contributed to your association and PAC funds have been worth it, look no further. This commercial is a testament that Ford can hear our footsteps in the background and that feels really great to us. But don’t set around patting yourselves on the back too long, the real battle is still ahead. Enough Said Support your associations completely. Be active, bring new members, contribute to Legislative and PAC funds and join forces and especially on this issue realize that your competitive neighbor down the street is no longer your biggest threat…..there is a bigger threat and it is even scarier. TARA Tradeshow and Conference October 23-24, 2015 Check out all the information in this TARA Report or on our website, about the Conference in Ft. Worth. BOWLERS WANTED! Don’t forget to sign up for Friday Night Bowling. I know you are wondering why we keep returning to Ft. Worth, the answer is –Barry Rubin at American Auto Salvage makes it possible to have a conference and for the association to still make money. This conference and our vendors make it possible to keep this association active and viable. Membership dues cannot support it alone. Dues for TARA membership are about half of what it costs in other states. And in spite of these minimal dues, TARA sustains an executive director and a full time lobbyist. The funds to keep this running are collected from conference activities and donations from members. Participate in the fun and come to Ft. Worth. Executive’s Director... continued on page 20 September/October 2015 5 ASSOCIATION NEWS Data Feeds By Mike Kunkel We live in a data driven electronic world and used auto parts is getting more entrenched with data feeds to let people electronically look at our inventory and pricing. We pay various entities to make sure that we are seen in a variety of places. The electronic communications for inventory availability and pricing is not new to us. As a matter of fact, we were pioneers in this technology. Does anyone remember Orion, INCOMNET, Compass and other teletype systems we used to use? I think that the Hollander product, Eden, was an evolution of that concept. We now have the ability to have any yard’s inventory on our screen regardless of yard management system. (YMS) We even developed our own language in the process. NIQ – not insurance quality, LAT – look at this are a few of the ones I used to use. That evolved into 6D1 & 5L2, also known as the ARA parts grading system. It works fantastic but is a foreign language to most people. Car-Part gets credit for pushing our inventory to the masses. Their website still produces an awful lot of sales for many of us on a retail, wholesale and insurance company level. As time as gone on, many people have entered into this space. A lot of us have full blown EBay stores that sell trinkets all the way to engines and in high volume in some cases. APU Solutions entered the market and gave body shop & insurance carriers an electronic response on part availability. The first real live data ping that we had. The companies that sell the estimating software that the insurance companies and body shops use are expanding their programs to include electronic access and procurement of our parts. All of these things are supposed to help us sell more parts. The average number of parts sold per vehicle has not moved yet that will be the determining factor of the success of this next evolution. There are 3 estimating software companies. CCC, Audatex & Mitchell. All 3 will have something and we will need to participate in all of them in order to cover 100% of the insurance repair segment as most body shops have to use a specific package for each specific insurance carrier. This sounds confusing to me. How do I make sure that my data is going to the correct people and I am participating in the proper data feeds? I believe that this is the next evolution that is going to get us to sell parts based off of VIN numbers like we need to. We are going to do a session about data feeds at the upcoming TARA meeting. I hope you join me as we put this puzzle together and try to position ourselves properly for the changing market place. September/October 2015 6 ASSOCIATION NEWS TARA Legislative Update By Bruce Ormand 2015 Halftime Report You guessed it back again by unpopular demand. Here we are and half of 2015 is behind us, this has been a busy year on all accounts. The 2015 Legislative session has ended and it was another interesting year. Rubber Manufacturer of America (RMA) or as they say in Mexico (Diablo) attempted once again to bring change or control over the used tire industry but was not very well embraced by the Texas Legislature, ARA or TARA. Our biggest concern was trying to monitor the bill to make sure it was not attached to another bill as an attachment. We also attempted to work with DMV on their attempt of a clean up bill for the Salvage industry, there were not many substantive things in the bill that would have been productive. The bill never got out of committee as it was not deemed important enough to move it forward. DMV is currently submitting changes for the Salvage Dealers through rule and we are working with CJ Treadway our lobbyist to make sure there are no adverse affects to out industry. TARA has already made comments on the preliminary language and have just received the revised version to study. I must take this time to thank Tim Straney, Cheryl Lambright, Ronnie Patke for taking time out of their busy schedules to spend hours on a conference call going through 40 plus pages with CJ and myself. Trust me you can get brain damage doing this, Oh yeah that’s right I am brain damaged. TARA continues to press on DMV to try and close some of the giant loop holes in their system to protect the integrity of the industry. This will be a busy interim year for us to try and bring substantive change to DMV. WARNING!!!!! DPS is making random stops to Used Auto Parts Recycler’s checking for license plates that have not been removed, stickers that need to be removed and checking your paper work to see if all you license’s and title work is in order. A1 Partsmart has been inspected 4 times in the last two years. TDLR should be staring another round of inspections soon so be sure to have all your paper work in order for their inspection as well. Last but not least we will look forward to seeing everyone at the TARA conference in October. Be sure to make plans to attend it will be in Ft. Worth this year and we looking forward to having a great time. September/October 2015 7 ASSOCIATION NEWS 84th Legislative Session Wrap-Up By CJ Tredway, TARA Government Affairs Consultant The 84th Regular Session of the Texas Legislature ended on Monday, June 1st. The Legislature considered 6,476 bills & joint resolutions with 1,278 or 19.7% becoming law. The general successes of this Session include: • Balanced budget with additional resources into public and higher education • Tax reductions - increased homestead exemption and reduced franchise tax • Improvements in public & higher education • Dedicated funding for transportation with voter approval • Border security • 2nd Amendment - licensed open carry of handguns and concealed carry on college campuses A number of bills were filed specifically relating to the salvage industry and I am pleased to report that despite a rather turbulent Session, TARA emerged unscathed as highlighted below: • HB 691 by Representative Armando Walle (DHouston) relating to the regulation of automotive wrecking and salvage yards in Harris County. Specifically, the bill proposed increasing the maximum civil penalty from $1,000 to $2,500. [Note: The same legislation was filed as SB 366 by Senator Sylvia Garcia (D-Houston) and HB 1722 by Gilbert Pena (R-Houston)]. TARA was neutral on the legislation. All three bills failed to pass. • HB 1356 by Representative Jason Issac (R-Dripping Springs) prohibiting the sale or rental of unsafe tires. The bill would have made it a misdemeanor offense to sale or rent a tire that did not meet the Texas Department of Public Safety inspection standards. TARA opposed the bill and it failed to even receive a hearing. • HB 1788 by Representative Armando Walle (DHouston) & SB 1504 by Senator Sylvia Garcia (D-Houston) relating to the regulation of salvage vehicle dealers, salvage pool operators and salvage vehicle rebuilders. The Texas Department of Mo- tor Vehicles (TxDMV) initiated this “nonsubstantive clean-up” bill. TARA offered a number of suggestions that were incorporated into the bill, however, the most important recommendations were not accepted as they were substantive. The bill failed to pass, however, the bill authors are open to working on a more substantive bill for next session. • HB 2007 by Representative Richard Raymond (DLaredo) & Senator Judith Zaffirini (D-Laredo) HB 2007 relating to fees imposed by a county for licensing a junkyard or automotive wrecking and salvage yard, specifically the bill would allow a county to impose a fee up to $150 for administration and enforcement of a county ordinance. TARA did not support this legislation; the bill failed to pass. • SB 1436 by Senator Judith Zaffirini (D-Laredo) & Representative Richard Raymond (D-Laredo) relating to the setback requirements for a junkyard or an automotive wrecking and salvage yard. The bill clarifies that a salvage yard may not be located within 50 feet of “nearest property line” of a residence. TARA did not object to this legislation; the bill passed. In addition to working on industry-specific legislation, I tracked 46 bills on behalf of TARA of which seven passed including: • HB 11 by Representative Dennis Bonnen (R-Angleton) & Senator Brian Birdwell (R-Waco) relating to border security. • HB 32 by Representative Dennis Bonnen (R-Angleton) & Senator Jane Nelson (R-Flower Mound) relating to decreasing the franchise tax rate by 25 percent for businesses; takes effect January 1, 2016. • HB 473 by Representative Helen Giddings (DDallas) & Senator Jose Menendez (D-San Antonio) relating to a prohibition on the sale or transfer of law enforcement vehicles before removal of certain equipment and insignia. • HB 2076 by Representative Rene Oliveira (D- September/October 2015 8 ASSOCIATION NEWS Brownsville) & Senator Robert Nichols (R-Jacksonville) relating to the sale of a motor vehicle, motorboat, vessel, or outboard motor by a possessory lienholder • HB 2187 by Representative Wayne Smith (R-Baytown) & Senator Larry Taylor (R-Friendswood) relating to the regulation of metal recycling entities. • SB 1853 by Senator Eddie Lucio (D-Brownsville) & Representative Larry Phillips (RSherman) relating to authorizing the Texas Department of Public Safety to establish a statewide program for the prevention and detection of the unlawful possession or movement of certain firearms, controlled substances, currency, or smuggling or trafficking of persons. • SJR 1 by Senator Jane Nelson (R-Flower Mound) & Representative Dennis Bonnen (R-Angleton) proposing a constitutional amendment to increase the amount of the residence homestead exemption from property taxation by a school district from $15,000 to $25,000. The proposal will be considered by Texas voters If you would like a copy of the TARA’s Final Bill Status Report, please contact [email protected] and to view full-text of legislation go to the Texas Legislature Online www. capitol.state.tx.us. ASSOCIATE MEMBERS Auction Systems of Amarillo Phone: (806) 622-1322 Auto Data Direct, Inc. Phone: 850-877-8804 Bishop International Phone: (214) 426-6449 Brock Supply Co. Phone: (800) 528-4400 Car-Part.com Phone: (859) 344-1925 Hollander, A Solera Company Phone: (800) 825-0644, Ext. 2449 James Environmental Phone: (512) 244-3631 Kabele Truck & Auto Parts Phone: 800-225-6908 Lamb Fuels, Inc. Phone: (619) 421-0805 LKQ Corporation Government Affairs Phone: (954) 492-9092 Mike French & Company Recyclers Toll Box Magazine Phone: 360-354-8326 Neely, Craig & Walton, LLP Being A TARA Member Has Its Benefits! 4 Legislative Power 4 Industry Information 4Connectivity 4 Annual Conference 4 Education Sessions 4 TARA Report Newsletter 4 Biz Unite Discounts Become part of a progressive and strong organization. Join your friends and be a member! Phone: (806) 376-6301 Phoenix Automotive Cores Phone: (602)415-9166 Platinum Recovery & Recycling 830-303-8916 Recyclers Power Source Phone: (800) 336-5614 Waymer & Associates Insurance Agency 800-447-5152 Be sure to consider our associate members first for your business needs. Visit our website for full contact information www.texasara.com TARA Tel: 800-710-8272 Fax 713-461-1515 [email protected] www.texasara.com September/October 2015 9 ASSOCIATION NEWS 30 Ways to Make Your Advertising More Productive and Affective By Mike French When I was a kid I loved to watch the old Ma and Pa Kettle movies about a backwoods family with 16 children. The father, “PA” , was a slow talking fellow who never seemed to fix anything no matter how urgent. If the roof sprung a leak, or the fence railing gave way, he would simply scratch his head and say, “I’m gonna fix that one of these days . . .” Of course he never actually got around to fixing anything, although his intentions seem to be sincere. I think his problem was that he had so many kids and so much going on all around him that he was just distracted and overwhelmed by it all. He didn’t know what to do or where to start. Many recyclers have the same attitude as Pa Kettle when it comes to their advertising. They’re “gonna fix it one of these days.” But, like Pa Kettle, they only have good intentions which are not enough! Some recyclers tell me they don’t get their advertising done because they simply feel overwhelmed by it all. They, too, don’t know what to do and where to start. Besides all the old advertising methods there’s all the new electronic stuff including the many kinds of social media. But I think they are making it too hard. Here are a few things you can do. 1. Schedule uninterruptible time to plan your advertising. You will get more done and accomplish more advertising projects if you do. Do your planning away from the dis- tractions of your normal work. One person I know goes to the public library and he leaves his phone in the car. 2. Make all your advertising methods trackable and accountable to results. Don’t do any advertising projects you cannot measure! This will help you spend your valuable advertising dollars the most wisely. 3. Learn and do ONLY direct response type advertising methods! All advertising methods fall into two categories, Image Advertising and Direct Response Advertis- ing. Know the difference between the two. Simply put, Image (nonselling) advertising doesn’t ask the customer or prospect to do anything. There is no offer presented and it cannot be measured or held accountable for results. Direct Response (selling) Advertising, on the other hand, tells what to do. It includes specifics about products/ services and tells where/when/ how to get them, and results can be measured. 4. Brainstorm with your sales staff for new ideas. You will benefit greatly File A Complaint On Unlicensed Used Automotive Parts Recyclers (UAPR) TARA Will File the Complaint For You! Contact Cheryll [email protected] 800-710-8272 Or Follow the link below and Complete the Complaint Form for TDLR https://www.tdlr.texas.gov/complaints/complaintform_unlicensed. aspx?strradiobutton=used%20automotive%20parts%20recycler 10 September/October 2015 ASSOCIATION NEWS from taking advantage of their valuable observations and experience. Involving them will also create good will and enthusiasm by staff towards your marketing campaigns. 5. Monitor Recycler advertising. Especially know what kind of advertising is currently being used in your area. Get on recycler lists so you will receive their mail-outs. How do you do this? Buy something from them, or get a family member or friend to do so and then give you what they receive. Look at what they are doing with a critical eye and use what you learn to make yours better than theirs. 6. Do advertising projects more often than your competitors do. This will give you an edge. For instance, if they send a company newsletter once a month, send yours every three weeks. If they drop something into the mail twice a year, do yours three times a year. 7. Use bounce-back offers to instantly sell again to those who have just made a purchase from you. This works because people who have just bought something from you are now predisposed to do so again. Prepare some small flyers featuring some specials to use for this purpose. Place them in your statement envelopes to ride along with customer receipts. Include one with every shipment and even to be hand delivered by your delivery drivers. Have your sales staff give one to each person they make a sale to at your store. 8. Up-Sell. Studies have shown that people will generally say yes to an up-sell opportunity up to 20% above the cost of their original purchase. If they just spent $100 with you, you can easily add another $20 to the sale by offering them at the point of purchase something else they need. Put up-sell products into place and train your sales staff how and when to present them to customers. For instance, if a customer just purchased an engine, the salesperson would say, “Do you need oil, seals and belts to go with that?” Yes! You should sell things like fluids, belts, and specialized tools needed to help September/October 2015 11 ASSOCIATION NEWS with the install! By making only 5 up-sell purchases of $25 per day, at the end of their year you have increased sales by $32,500! 9. Read at least one good advertising book a month. This will help you stay abreast of new and exciting advertising trends and methods. 10. Attend an advertising/marketing class or conference at least once a year. 11. Become “the” automotive recycling expert in your marketplace. This will make you the go-to-person by the media. When anything newsworthy happens they will seek you out and interview you about it. To become the local expert you simply proclaim that you ARE “the” expert and you add the title to your all your advertising, “John Doe, The (city/county/state) Top Expert in Automotive Recycling!” By the way, there can be only one so called top “expert” in any field per community and the title goes to the first one to proclaim, it no matter how young or old! Anyone else who tries to self proclaim after the fact will fall flat as a Johnnycome-lately, or an “also ran”. So, better make it you first! 12. Use social media. There is Facebook, Twitter and LinkedIn, just to name three. Learn and do one social media method at a time until you master it. There are many how-to books available to teach you how. Do research online to find them. 13. Hitch-hike your ads along with a non-competitor business who sells to your same marketplace. You may find some new clients among their customers and contacts that you have not reached. If they have a newsletter or do direct mail, ask to include an ad in it about your products and services. Contribute to the costs and you both save money. 14. Phone your customers. This has proven to increase sales up to 35% in one month. Call five of them per day and ask how they are doing and to check to see if they need anything. You will catch some at thier point of need and they will order something on the spot. 15. Send thank you notes to those who have made purchases from you. Include a coupon good for savings on their next purchase. 16. Ask for referrals from your best customers. Everyone knows others like themselves. Contact referrals immediately and introduce yourself. Tell them who referred you to them, and ask if they need anything. 17. Call old customers who haven’t bought from you for a while and tell them you miss them. This will help you discover and fix problems that may have caused them to leave. 18. Do a mailing beyond where you are currently doing business. Include money-saving coupons to attract new business. 19. Update your mailing list often. Buy a fresh mailing list from a list supplier twice a year rather than to get a list and use it for the entire year like most companies do. This is so that you get the new startup September/October 2015 12 ASSOCIATION NEWS businesses more often than your competitors do. You will be able to advertise to them months before your competitors do. 20. Collect email addresses from customers and send special offers to them. Have your staff ask every customer for them. Have a place on your website where customers can sign up. Give them a reason for signing up by telling them they will receive special offers and savings on offers just for them. 21. Make it possible for customers to order parts directly from your website 24/7. Even though this may seem like an expensive thing to do, it is really not. Customers will be able to order anytime online and it’s like having another salesman for free. Besides, more and more folks prefer buying this way. 22. Write a column for your newspaper and/or your state association. Most papers are looking for freelance articles. This will give you much free publicity. 23. Upgrade or Improve your business signage and delivery truck look. Make sure your business name, parts slogan, phone number and website are prominently seen. 24. Use QR (quick response) codes everywhere and on everything. It’s the new way for people to instantly access your website or watch a YouTube video on their smart phone about your business. 25. Create YouTube videos. Use them to introduce new products, to introduce your staff, or even to explain how to do proper installs. Post them on your website and let people know they are there. 26. Email broadcast a list of your new arrival vehicles each week to your customers. This will act as a reminder to them that you are in business and may even get you some part orders. 27. Accept competitor coupons. Turn their coupon campaigns to your advantage. Sweeten the deal by adding, “PLUS, 5% or 10% MORE!” Advertise that you accept competitor’s coupons by posting it on your website and elsewhere. If you include coupons on your advertising materials make one that says, “We Accept Competitor’s Coupons PLUS 5%!” 28. Utilize secondary offers and freebies. Use a headline on your marketing materials that says, “Wait! There’s more!” to make fence sitters response positively and im- October 2 24, 2015 2015 TARA CONFERENCE AND TRADE SHOW TARA Cash Raffle $5,000 CASH PRIZE PLUS MANY MORE PRIZES Drawing: October 24, 2015 Location: American Auto Salvage Ft. Worth $50 per ticket Need not be Present for $5,000 Cash Prize More Information at www.texasara.com or call 800-710-8272 A L I VE A UCTION Will take place at the 2015 TARA CONFERENCE at AMERICAN AUTO SALVAGE IN FT. WORTH OCTOBER 24, 2015 This is one of the major fund raisers for TARA. If you have items you would like to donate contact Ronnie or Donnie Patke – 281-489-0990. You or your company will be recognized as an Auction Sponsor in the program and on signage throughout the Conference. TARA Greatly Appreciates Your Contributions! September/October 2015 13 ASSOCIATION NEWS mediately to your advertising offers. Use nice T-Shirts, Quality Ball Caps, and other tie-in items for this. There a thousands of possibilities. 29. Utilize unsold advertising space. Save money on your ads by always asking for “unsold” advertising space in publications that go to your marketplace. You can save up to half the normal ad cost by What are you going to do when OSHA walks in the door? A Must Attend Session at the TARA Conference October 23-24, 2015 • What you need to do before the auditor comes in the door. • What do you do when the OSHA Inspector is standing on the other side of your counter? • What should you do after they leave. Get yourself prepared by attending the TARA Conference in Fort Worth on October 23-24, 2015. doing this. Have some ads created and ready to use for this purpose. Ask publications to let you know just before they go to press that unsold space is available, then submit your ready to go ads to go into the space. 30. Use Craig’s list. It’s a way to get almost instant results for free. You may not be able to use all of the above ideas but you should be able to use some of them to get and stay ahead of your competition. Finally, regarding your advertising, don’t ever be like Pa Kettle and say, “I’m gonna fix that one of these days”, but instead, do something now! By Mike French, used by permission. Visit: MikeFrench.com. NOW YOU CAN SEPARATE THE BAD GAS FROM THE GOOD GAS! 14 September/October 2015 ASSOCIATION NEWS The Enviro-Rack Auto Fluid Removal & Dismantling Station 100% Powered By Air! No Motors, No Pumps, No Downtime! “Keeping It Off The Ground” FREE Vacuum System with every Enviro-Rack purchase! uto for the a ! k c a r drain ntler Perfect ts disma r a p d n a recycler The Enviro-Rack is the first and only portable fully self-contained fluid removal system on the market. We offer all steel tanks along with a grated catwalk for operator safety. Underneath the catwalk is a 249-gallon catch pan and also a 360-gallon tank to catch any spills. No other system on the market comes close to the Enviro-Rack. This unit meets EPA and state level regulations concerning fluid removal. The Enviro-Rack is totally air operated. There are no gasoline or electric motors that could create a spark. The Enviro-Rack is a safe system that offers complete fluid removal in less than 5 minutes. EXCAVATORS/ SHEAR HEAR PACKAGES IRON PACK BALERS OTHER MACHINES AVAILABLE! CALL FOR MORE INFORMATION! SPECIAL 2015 RATES! BUY NOW! GRAPPLES 45 YEARS’ OVER CE! EN RI EXPE Wadley, Georgia 877-247-6629 • Fax: 478-252-9030 Email: [email protected] • www.ironax.com September/October 2015 15 ASSOCIATION NEWS “PAC THE ALLEY”BOWLING TOURNAMENT OCTOBER 23, 2015 – 7:30 Cowtown Bowling Palace 4333 River Oaks Blvd. Ft. Worth,TX 76114 Racking up funds for our PAC FUND. Full of fun and for the best of causes……. Proceeds go to the TARA PAC Fund. 16 bowling teams of 4 bowlers. Create your own team or let TARA put you on a team. Prizes from the best bowling shirts to the best form, to the most creative technique Don’t want to bowl….then sit back and enjoy the insanity Watch the fun roll in! REGISTRATION $75 PER PERSON Registration includes food, beer, bowling fees & shoes $75.00 REGISTRATION EVEN IF NOT BOWLING TEAM REGISTRATION (4) $250.00 Name:_______________________________________________ Company____________________________________________ Name:_______________________________________________ Company____________________________________________ Name:_______________________________________________ Company____________________________________________ Name:_______________________________________________ Company____________________________________________ Team Name: (Optional)______________________________________________________________________ INDIVIDUAL REGISTRATION $75.00 Name:________________________________________Company_____________________________________ YesNo* Name:________________________________________Company_____________________________________ YesNo Name:________________________________________Company_____________________________________ YesNo *Please indicate if you would like to be on a team Registration includes food, beer, bowling fees & shoes Enclose check made payable to TARA or provide credit card information Card No. ____________________________________________________________ Exp______________ VC______________ Name on Card____________________________________________________________ Billing Address ___________________________________________________________ City/ST/Zip______________________________________________________________ Signature of Cardholder____________________________________________________ Please mail, e-mail, or fax: TARA • PO Box 3547 • Galveston, TX 77552 Fax: (713)461-1515 • Phone: (800)710-8272 [email protected] • www.texasara.com 2015 Texas Auto Recyclers Conference & Trade Show OCTOBER 23 & 24, 2015 Hosted by American Auto Salvage - Barry Rubin 2567 Decatur Ave., Fort Worth, TX 76106 ATTENDEE REGISTRATION Name:_______________________________________________________________________________________________________________ Company:___________________________________________________________________________________________________________ Address:_____________________________________________________________________________________________________________ City:_____________________________________________________ State:___________________ Zip/Postal Code:_____________________ Telephone:_______________________________________________ Email:______________________________________________________ OCTOBER 24TH - CASH RAFFLE - GRAND PRIZE $5,000.00 & Prizes Contact TARA Board Member or TARA for tickets 800-710-8272 Don’t miss these events! FRIDAY – OCT 23 - PAC THE ALLEY 7:30 Bus shuttle to and from Cow Town Bowling Palace Please complete the separate PAC THE ALLEY registration! SATURDAY – OCT 24 TARA Sessions , General Meeting, Breakfast & Lunch 9 - 3:30 at Holiday Inn Trade Show/Auction/Cash Raffle & Dinner 5:30 – 10 at American Auto Salvage (Junior from HiWay Inc., Brownwood is Cooking Up his Famous Texas Tenderloins!!!) Room block at Holiday Inn North Fossil Creek, --- Call 877-834-3613 $109.00 per night – Room block until September 20, 2015 Name___________________________________________________ Name_______________________________________________________ Name___________________________________________________ Name_______________________________________________________ Name___________________________________________________ Name ______________________________________________________ TARA Member No. of attendees (1st attendee)________________________ @ $150.00/person = $____________________________ (Additional)______________________________ @ $100.00/person = $____________________________ No. of NON-MEMBER attendees_____________________________________ @ $200.00/person = $____________________________ TOTAL AMOUNT $__________________________________ Don’t forget to register for PACK THE ALLEY FOR PAC- Oct. 23 r Enclose check made payable to TARA rVisa rMC PACK THE ALLEY requires a separate ticket. This ticketed event is not included in registration r Discover rAmex Card No.________________________________________________________________________ Exp._____________________________ VC___________________ Name on Card____________________________________________________________________ Billing Address___________________________________________________________________ City_____________________________________ State___________ Zip_____________________ Signature of Cardholder___________________________________________________________ Please mail, e-mail, or fax: TARA, PO Box 3547 Galveston, TX 77552 Fax: (713)461-1515 Phone: (800)710-8272 [email protected] www.texasara.com 2015 Auto Recyclers Conference & Trade Show Sponsored By Texas Automotive Recyclers Association Hosted by Barry Rubin at American Auto Salvage, Ft. Worth, Texas October 23-24, 2015 EXHIBITOR REGISTRATION FORM Company:___________________________________________________________________________________________________________ Attendees’ Names:____________________________________________________________________________________________________ Address:_____________________________________________________________________________________________________________ City:_____________________________________________________ State:___________________ Zip/Code:___________________________ Telephone:_______________________________________________ Email:______________________________________________________ Type of Product/Service:_______________________________________________________________________________________________ Don’t Miss the Opportunity to Advertise Your Company with One Our of Great Sponsorhips Exhibitor Table $450 (per table) for TARA Associate Members Exhibitor Table $550 (per table) for Non-TARA Associate Members (Fee includes table, hotel meals, electricity & internet and Trade Show Dinner) Table Locations will be designated at Registration r Enclosed check made payable to TARA rVisa rMC r Discover rAmex No. of Exhibit Table(s) Card No.________________________________________________________________________ __________ (#) r $450/table X r $550/table = _____________ Exp._____________________________ VC___________________ Name on Card____________________________________________________________________ Billing Address___________________________________________________________________ City_____________________________________ State___________ Zip_____________________ Signature of Cardholder___________________________________________________________ Don’t miss these events! FRIDAY, OCT- 23 - PAC THE ALLEY 7:30 Bus shuttle to and from Cow Town Bowling Alley Please complete the separate PAC THE ALLEY registration! SATURDAY - OCT 24 TARA Sessions , Breakfast & Lunch 9 - 3:30 at Holiday Inn Vendor Tailgate Party & Set Up– Saturday 2:30 at American Auto Salvage Trade Show/Auction/Cash Raffle & Dinner 5:30 – 10 at American Auto Salvage Room block at Holiday Inn North Fossil Creek Call 877-834-3613 $109.00 per night Room block until September 20, 2015 (Junior from HiWay Inc., Brownwood is Cooking Up his Famous Texas Tenderloins!!!) REGISTER EARLY –SPACE IS LIMITED! Don’t forget to register for PACK THE ALLEY FOR PAC- Oct. 23 Separate registration is required for this ticketed event Please mail, e-mail, or fax this completed form to: TARA, PO Box 3547 Galveston, TX 77552 Fax: (713)461-1515 • Phone: (800)710-8272 [email protected] • www.texasara.com September/October 2015 18 INDUSTRY NEWS Metal Market Recovery Next Quarter? By Sue Schauls When will the steel scrap market recover? This is the biggest issue facing our industry today. The crash of the steel scrap market has put tremendous pressure on automotive recyclers. In this article we’ll attempt to gain an understanding of the complex puzzle that makes up the steel scrap supply and demand curve. But first we must ask: Why did steel and steel scrap prices fall sharply? Steel is a cyclical industry with its fortunes tied to several macroeconomic factors. There are several indicators domestic and global that investors, like U.S. Steel or Nucor, track according to author Mark O’Hara’s fifteen part article on the steel industry published recently at marketrealist.com1. Understanding the demand for steel through consumer trends will help to predict when the metal market will be on the road to recovery. But first we must understand the supply side of the market in order to gain the patience needed to ride out the tsunami of low steel scrap prices. Steel prices in the United States fell by over 10% in 2014 and steel scrap fell by about 20%. Steel is one of the world’s most important materials used in construction, cars and all sorts of machines and appliances. By far the biggest producer of crude steel is China, followed by European Union, Japan, United States, India, Russia and South Korea. The biggest producers of iron ore are: China, Australia, Brazil, India, Russia, Ukraine and South Africa. Steel Futures are traded on the London Metal Exchange (LME). Iron ore and coal used by integrated mills fell steadily through 2014 and the early part of this year. This gave a major cost advantage to mills in China and the Commonwealth of Independent States. (The Commonwealth of Independent States or CIS is a regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union). These mills have been increasing their exports of finished long products and billet as feed stock, thus displacing international demand for scrap to feed long-product electric arc furnaces abroad.3 The U.S. is a net exporter of ferrous scrap. What that means is that when international prices decline, there is an excess of material available in the U.S. market. Exporters choose to sell to the domestic yards instead, flooding the market with supply makes prices fall unless demand is also increased. “The key export markets for U.S. ferrous scrap are Turkey and Southeast Asia. Turkey depends on export markets for its long products and these are in disarray. Conflict and political upheaval have seen demand from its key markets of Iraq and Yemen fall away while sales have come under pressure from cheap Chinese and CIS long products (thanks to their lower cost base using iron ore and coal). They were selling to the U.S. market, but importers stopped purchasing in early 2015 on expectations of a decline in U.S. long-product prices. Finally, it has been cheaper for them to buy cheap CIS or Chinese billet made from raw material rather than U.S. melt scrap. As a result, they have stopped purchasing scrap and prices plummeted.”3 Either scrap prices had to fall or billet prices go up. With 80% of merchant billet currently supplied by integrated steel mills in China and the CIS and iron ore prices falling, the obvious but unfortunate result was falling scrap prices.3,1 U.S. Integrated steel companies haven’t been able to reap the benefits of the lower iron ore prices because their mine profits also dropped and many have metal recycling operations or partnerships that have been negatively affected by lower scrap prices. Metal recycling (and auto recycling) companies hold higher-cost inventories.1 Another key metric to watch in the steel market is the end consumers of steel. Steel consumption data is released yearly by the world steel association but with a lag of one year, so it’s not really helpful in making immediate projections. Steel is used in several enduse industries.1 The construction sector accounts for approximately 40% of total steel consumption in the US. This includes both residential and non-residential construction. A sharp increase in new home sales should boost steel although non-residential construction accounts September/October 2015 19 INDUSTRY NEWS for almost two-thirds of total construction spending in the U.S. Robust commerce is needed to stimulate commercial building. Nucor and Gerdau are leading suppliers to the nonresidential construction industry. The automobile industry is the second-biggest steel consumer. It accounts for one-quarter of steel consumption in the U.S. AK Steel gets almost 50% of its revenues from automotive companies. ArcelorMittal is another leading supplier to this sector. The energy sector is the third-biggest steel consumer in the US. Energy companies require steel for drilling and transporting oil. These products are also known as “tubular goods.” US Steel is the biggest supplier of tubular goods in North America. This segment has been under pressure due to the drop in crude oil prices. Consumer confidence is a key indicator for U.S. steel markets. Real estate and the automotive industry are two of the biggest steel consumers in the U.S. Both of these industries deal with high-value products. Most real estate and vehicle sales are driven by financing from banks. A higher consumer confidence index thus bodes well for automobile and real estate companies. Vehicle sales in January were 16.59 million units on a seasonally adjusted basis, an increase of nearly 10% over January 2014. Low interest rates, the launch of new vehicle models, and rising consumer confidence are some of the primary reasons for the uptrend in vehicle sales. Rising vehicle sales are positive for the steel industry. AK Steel earns more than half of its revenue from automobile companies. ArcelorMittal is also a major supplier to this sector. US Steel has announced a new management structure for its operations. It will now have an automobile industry expert heading its automobile division. Allegheny Technologies also supplies steel products to the automobile industry. Gasoline prices have dipped sharply with the fall in crude oil prices. This is positive for the automobile industry. However, steel demand from the energy sector might take a hit due to lower crude oil prices. Two of the three major demand-side indicators show promise toward increasing demand for steel in the near future. Unfortunately, steel production data tells another story. The American Iron and Steel Association (or AISI) releases weekly steel production figures. It also releases the capacity utilization rate in the steel industry. Only about three-fourths of total steel demand in the U.S. meets with production from domestic companies. The remaining demand comes from imports from countries like China and Korea. The biggest challenge that steel companies faced last year was cheap imports. 2014 could have been a phenomenal year for the U.S. steel industry if steel imports hadn’t spoiled the party.1 Steel imports increased by a whopping 37% compared to 2013. Steel consumption in the U.S. increased by about 5% over this period. Even though U.S. steel consumption grew at a higher rate than the rest of the world last year, more imports meant that the benefit went to foreign companies. Domestic steel companies lost out on business due to steel imports. Nucor reduced its price for rebar this year as it struggles with high rebar imports from Turkey. Hopefully three factors, a crackdown in China on tax loophole abuse, anti-dumping litigation filed by steel companies and nullification of the Russian treaty, will stem the growth in steel imports in 2015. First, China has a preferential tax policy for alloy steel products. A lot of steel producers in China started adding very low quantities of boron to standard steel products to help classify these steel products as alloy steel. Boron alloy steel accounted for around one-third of steel exports from China last year. Chinese authorities have now clamped down on this tax loophole. Steel exports from China increased in January, but analysts expect the impact of the new tax rules show up in the coming months. China also plans to close down some excess steel capacity this year. Massive overcapacity in China has been one of the major issues for the global steel industry. Second, steel companies filed a record number of trade cases last year and managed to get anti-dumping duty imposed in some cases. As steel demand is expected to grow at a slower pace this year, steel companies are expected to be more vigilant in filing trade cases. [DEFINITION of ‘Anti-Dumping Duty’ - A protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. In the United States, antidumping duties are imposed by the Department of Commerce and often exceed 100%.] Finally, the U.S. scrapped a treaty with Russia for importing hot rolled steel sheets. The full impact of this action should be visible this year. Steel companies will benefit from September/October 2015 20 INDUSTRY NEWS this step. The impact of these three action should push the market to “right” itself once the inventories on hand are utilized. Steel inventories have surged to record highs as a result of cheap steel imports last year. Metals service centers acquire primary metals like carbon steel and aluminum from metal producers and process them to customer specifications. Reliance Steel and Aluminum is the largest service center in North America. As per estimates, more than a quarter of total steel consumption in the U.S. is supplied by service centers. Service center inventories have been more than 9,000 tonnes for five months in a row. At current manufacturing rates, this represents 3.2 months of service center supply, the highest service center inventory since February 2009. The low steel scrap prices will prevail while service centers liquidate this inventory without immediately restocking from “downstream” markets like metal and auto recycler. So where does that leave off expectations? Ultimately, there is nowhere to go but up for steel scrap which is good news for the metal and auto recycling industry. Once the steel service centers’ excess inventory is depleted they will have to buy more material to manufacture products. Those products will be driven by consumer demand for automobiles and housing as long as the unemployment rate stays low, wages grow and consumer spending trends upward with consumer confidence. In the end, the loss of steel demand in the energy sector could be compensated by the extra disposable income consumers have due to lower gas prices. Artificial market intervention from the government through tariff or court litigation may also help the underpriced import market from continuing to devastate the U.S. metal market. At best, the metal market recovery could start in the next quarter. 1 Key Steel Industry Indicators That You Should Be Tracking, O’Hara, Mark, Feb. 2015, http://marketrealist.com/2015/02/ latest-steel-industry-indicators-mean-investors/ 2 http://www.tradingeconomics.com/commodity/steel 3 https://agmetalminer.com/2015/02/16/us-steel-scrapprices-plummet/ Definitions Macroeconomics is economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. Wikipedia Flat products include slabs, hot-rolled coil, cold-rolled coil, coated steel products, tinplate and heavy plate. They are used in automotive, heavy machinery, pipes and tubes, construction, packaging and appliances. Long products include billets, blooms, rebar, wire rod, sections, rails, sheet piles and drawn wire. The main markets for these products are construction, mechanical engineering, energy and automotive. A billet is a length of metal that has a round or square cross-section, with an area less than 36 in2. Billets are created directly via continuous casting or extrusion or indirectly via hot rolling an ingot or bloom. Reinforcing bar or Rebar is formed from a steel billet, normally having surface deformations for use in reinforcing concrete. The bar can be produced in straight lengths as well as coiled. Rebar is used in the construction industry to reinforce concrete. Executive’s Director... continued from page 4 Looking For Volunteers Please contact me if you would be willing to help at registration, bowling night or at the trade show. Everyone needs to contribute and I am wearing out my “tried and true” volunteers that work continuously every year. Back them up and call me to sign you up. Thanks all Cheryll Lambright 800-710-8272 [email protected] September/October 2015 21 INDUSTRY NEWS ARA News from Automotive Recycling Weekly ARA Safety Committee Provides Safety Audit Checklist Tool! Dear ARA Member: ARA knows well the efforts you take to provide a safe workplace for your employees and strives to provide you with resources to support your actions. One of the main resources ARA makes available to its members is its Safety Committee and the many tools that it produces, including safety tips, a workplace safety newsletter and training videos. On behalf of the Safety Committee and its Chair, Doug Reinert (ARA Past President), (below you will find a link) to yet another safety resource - the ARA/Wells Fargo OSHA Audit Checklist - provided to you as a guide outlining what you need to do to successfully meet the requirements of an OSHA audit. Wells Fargo Insurance Services worked with ARA to develop this guide specifically for professional automotive recycling facilities. We hope you find this tool useful. Please let us know if you have any comments/-suggestions or if you would like to participate in ARA’s Safety Committee - send an email to [email protected]. Please find the OSHA Audit Checklist at http://files. ctctcdn.com/dae4f49d001/3244dd7a-7722-4da5-be44e013d8343541.pdf Does Your Safety Manager Receive ARA’s Workplace Safety Newsletter? ARA’s Safety Committee publishes a Workplace Safety Newsletter six times per year and ARA wants to make sure that the staff responsible for safety at your facility are receiving each edition. If you would like to add an email address for your safety manager to the ARA membership dissemination list, please email Betsy at [email protected]. ARA Hybrid Vehicle Workgroup and ARAU to Develop Hybrid Battery Training Module ARA’s Hybrid Vehicle Workgroup - appointed by the Association’s Technical Advisory Committee - is working with ARA University to build on the ARA Hybrid Vehicle Dismantling Guide developed under the oversight of both the Workgroup and ARAU in 2012 and produce a stand alone specific training tool solely on hybrid electrical vehicle batteries. This document will complement the more general overview of hybrid batteries included in the 2012 Guide. To assist in this endeavor, ARAU and ARA have enlisted the help of an expert resource to help populate the stand alone document with the facts that dismantlers need to know about hybrid batteries, including their different chemistries, vehicle types, safety requirements, shipping/handling/ storage issues and the various markets for recycled OEM hybrid batteries. The final product is expected to be produced for all types of media (electronic, print, etc) and it is hoped will be available at ARA’s upcoming Annual Meeting and Convention this October 7-10 in Charlotte, N.C. Reserved Ad Space Call 877-525-4589 to reserve yours! MEMBERSHIP APPLICATION Texas Automotive Recyclers Association The undersigned hereby applies for membership in the Texas Automotive Recyclers Association and agrees to be bound by its bylaws accordingly. By-Laws are available at www.texasara.com. (PLEASE PRINT) Date:_______________________________________ PRIMARY Yard Name:____________________________________________________________________________________ Address: ________________________________________________________________________________________________ City:____________________________________ County:______________________ State:_________ ZIP Code:_____________ Business Phone: (_______ )______________________________FAX:(______ )_____________________________________ E-Mail:_________________________________________________ Web site: _________________________________________ Company Owner/Manager: __________________________________Title: __________________________________ Specify Company Type: r Sole Proprietorship________________________ r Partnership/Type_______________________ r Corporation/Type__________________________ r Other_________________________________ TDLR Used Auto Parts Recyclers License No.:_______________TCEQ Storm Water Permit Number:____________________ ADDITIONAL Yard Name: ________________________________________________________________________ Address: ________________________________________________________________________________________________ City:____________________________________ County:______________________ State:_________ ZIP Code:_____________ Business Phone: (_______ )______________________________FAX:(______ )_____________________________________ E-Mail:_________________________________________________ Web site: _________________________________________ Company Owner/Manager: __________________________________Title: __________________________________ TDLR Used Auto Parts Recyclers License No.:_______________TCEQ Storm Water Permit Number:____________________ Please indicate category below: r Direct Primary Member $325.00 per year r Associate Member $325.00 per year r Additional Yard(s) - $100.00 per yard/per year r Affiliate Member $325.00 per year Please attach information for all additional yards Payment Information r Check Enclosed (payable to TARA) r MasterCard r Visa r Discover r American Express r Automatic Monthly Credit Card Payment: $28.50 per month (Payment includes a $1.42 a monthly credit card processing fee for a total of $342 annually. Charges will continue on a monthly basis and membership will automatically renew unless written notice of cancellation is received 30 days prior to monthly charge.) Card #_______________________________________ Verification Code:______________ Expiration Date ____________ PRINT Name of Cardholder ___________________________________________________________________________ Signature of Cardholder_______________________________________________________________________________ Address: (If different than above address) _______________________________________________________________ ___________________________________________________________________________________________________ Return to: TARA • c/o Cheryll Lambright • PO Box 3547 • Galveston, TX 77552 [email protected] • TEL: 800-710-8272 • FAX: 713-461-1515 TARA0915 The Texas Automotive Recycling Report RJ McClellan, Inc. 2357 Ventura Drive Suite 110 Woodbury, MN 55125 PRESORTED STANDARD U.S. POSTAGE PAID Change Service Requested Twin Cities, MN Permit No. 7911 Linking you to more customers Contact Hollander Sales: 800-825-0644