Automotive Recycling Toolbox Edition, Issue 1 • 2024 by AutomotiveRecyclersAssociation

Issue 1 • 2024

RECALL POLICY

INSIDE:

ARA CONVENTION REVIEW Nick Daurio Takes the Gavel as ARA President

Mailed FREE to the top contact person at automotive recycling companies in the USA & Canada

PLUS:

The Future of Change Certification Explained Precious Metals Profits

December/January 2024

TOOLBOX EDITION

CONTENTS 4

Predicting the Future By Mike Kunkel

taying Ahead in the S Catalytic Converter Game By Joelle Boivin

12 We Are ONE By Kristi Werner 14 Plugging into Success By Maura Keller 17 The Participation Award Goes To... By Theresa Colbert 18 Recall Policy for More than Airbags By Sue Schauls 22 S elling Airbags? Get CAR Certified ASAP! By Theresa Colbert

4 14

24 Change is on the Horizon By Jake Nawrocki 26 S cholarship Fundraising … from a Hat? By D.J. Harrington 28 PGM Blues By Garrett Schwenk 30 Never Overlook the Obvious Again By Mike French 33 ARA & Regional News 35 Now & Then CELEBRATING 80 YEARS!

FEATURED ADVERTISERS

COVER: ISTOCK.COM/DIANE PILON; INSET: CARYN SMITH

– Recycled Original Equipment ®

Amwins Program Underwriters......................................................... 20 ARA Certifies Your Excellence ............................................................ 25 ARA Mentors the Industry......................................................................7 ATSG........................................................................................................ 23 Buddy Automotive Innovations . ...................................................... 11 Carolina Wheel Cover.......................................................................... 32 CARVA..................................................................................................... 31 Copart........................................................................................................6 CRUSH/S3 Software Solutions..........................................................IFC Discount Shop Tools............................................................................ 19

ETE REMAN............................................................................................ 21 Midwest Gas.......................................................................................... 32 Northlake Auto Parts............................................................................ 34 Noble 6................................................................................................... 29 PMR Catalytic Converter Recycling......................................................9 Team PRP...............................................................................................BC Road Ready Wheels.................................................................................5 Sellick Equipment, Ltd........................................................................ 13 Supershear............................................................................................. 27

AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA. Phone: (571) 208-0428, Fax: (571) 208-0430 Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Copyright © 2024 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. MEMBER SUBSCRIPTIONS: U.S.–An additional member subscription is $20/year. NON-U.S.–An additional subscription is USD$60/year airmail. INSTITUTIONAL: A subscription for U.S.-based libraries/non-profits is $20/year. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA.

AUTOMOTIVE RECYCLING

BY MIKE KUNKEL

Predicting

s one year ends and another year begins, we are all faced with a choice – doom and gloom or a time for optimism. The past few years have been full of excitement and change. Consolidation has been working through the industry – four major players with something close to 75 sites now. Things in the salvage acquisition space have been diﬃcult to navigate. Rising pool fees, title costs, slow loading times have all increased our operational expenses. The quantity of vehicles available, coupled with the number of units that are not actually awarded, has made the prices high while the price of the parts is starting to decline. Are these things negatives or are they opportunities for us to capitalize? It all depends on your outlook and what you are prepared to do. There are certain things within our industry that do not ever change. It is simple from a conceptual perspective. Buy vehicle, inventory vehicle, dismantle vehicle, sell equivalent parts to equal number of vehicles purchased, collect money, and repeat the process. Sounds very simple, because it is. What gets us into trouble? Failing to understand all the moving pieces and

allowing the variables to be too plentiful to control the probable outcome and over-complicating things without getting better results. Competition for anything makes the price go up. That is free enterprise in its truest definition. The price of vehicles is directly related to demand and availability. We are all in need of salvage vehicles and are expanding our search ranges to help satisfy that demand. We saw our part prices shoot up early in the pandemic and are now seeing those same prices come down while the rest of the world seems to be going up on prices. This is margin compression and is a real thing that will leave a mark if not managed properly. Regardless of how your outlook is, we have some definitive needs from a financial standpoint. It is not diﬃcult to look over your profit and loss statements from the last few years and see the categories that have seen significant increases. Payroll, insurance, property taxes are a few that come to mind instantly that have moved upward. How much will your operating expenses increase in 2024? That is open to debate but if you have looked at your profitability statements for a two- or three-year period, you will know how much they have increased and that will give you guidance

about what to expect from the upcoming year. A line item by line-item look is always a good idea. Is it a controllable expense? Variable or fixed expense? Is it expected to go up or remain the same? Is there room for improvement in a particular category? Once you have looked at the expected expenses of the business for the upcoming year you have a very good idea of how much gross profit you will need to produce in 2024. Why is gross profit important? It is how we pay the bills and have some leftovers as a profit. Businesses do not just happen to work and make money. They happen to work because they are operated under a plan. We have had a nice run the last few years and we tend to lose track of the plan because things just happened easily. Things are changing and focusing on the plan is now essential. Having a reasonably accurate assessment of the expenses is the starting point for any plan. We are in business to make a profit. There are a lot of cool things about being in business, but they all go away when we are not profitable. Breaking the numbers into bite-size pieces that are easy to understand and simple to execute becomes the basis of the business plan. Gross profit is the difference between what we paid for the product and what

Mike Kunkel is an automotive industry lifer having grown up in his family’s new auto supply, paint body & equipment and machine shop. Following his college graduation, he entered the salvage industry as an installer for Auto Info. His love of the industry led to a successful career in building a large recycling facility in Fort Worth, Texas while being instrumental in the formulation and growth of the TEAM PRP program. Mike is a frequent speaker at industry events in various countries. Mike uses a basic and proven platform to analyze businesses. He provides an honest assessment of where a facility is and what steps need to be taken to grow both sales and profits. Mike is a proven leader who is highly regarded in the automotive industry.

ISTOCK.COM/NUTHAWUT SOMSUK

Pay attention to your historical profitability statements to help determine what you need in gross profits for 2024.

AUTOMOTIVE RECYCLING

BY MIKE KUNKEL

we sold it for. We have gross profit being produced by multiple product lines. In-stock parts, brokered parts, warranty sales, core sales, core deposits, freight, scrap and commodity sales are things that almost all auto recyclers deal with. Aftermarket and re-manufactured products, along with some other things, get mixed in along the way for some people. Using your historical performance will give you some indication of what to expect from some of those product lines. If you start off with the gross profit demand of your business and subtract the gross profit produced, you will work your way down to the amount of internal gross profit you must produce. Internal gross profit would come from in-stock part sales along with the scrap disposal component. Our in-stock sales have two components to it. The first is the sales that we have already purchased. We have often

Using some simple tools, we can forecast the quantity of vehicles needed, salvage spend, projected sales purchased and ultimately projected gross profit purchased. If done correctly, we will then be able to turn the projected gross profit into actual gross profit, and regardless of the economic times, make sure that our business stays viable. In this case, viable means being able to purchase and pay for enough salvage to then sell enough of each product line to produce the proper amount of gross profit to pay for all of the people and things associated with operating the site. There is no reason to think that profitability needs to disappear even if it gets a little tighter than it was in what would be considered a boom time for most all of us. Use your experience to predict your future performance and that is how we foresee the future. In a number of realms, this is also called budgeting. TB

Businesses do not just happen to work and make money. They happen to work because they are operated under a plan. referred to this as the “lake.” It is large in size and carries roughly half of our sales. The other component is the sales from vehicles that we do not own yet. We are constantly adding to our inventory. The fresh arriving material tends to be very desirable and parts of it sell particularly fast. We have referred to that as the “pond.” Even though the number of vehicles and space are substantially different between the “lake” and the “pond” (warehouse and field versus incoming hold section), their sales are relatively close to each other.

AUTOMOTIVE RECYCLING

BY JOELLE BOIVIN

STAYING AHEAD IN THE

f you’re recycling nonferrous metals in today’s market, you might be struggling to give your converter operations the attention they truly deserve. With low industry volumes and volatile market trends, we understand why recycling companies are choosing to turn their focus away from converters. The truth is, however, that your converter recycling ventures are still very profitable. To prove it, we put together three reasons why you shouldn’t overlook your catalytic converter operations. So, if you’re ready to get all the answers, keep reading!

Converter Recycling is a Highly Profitable Business RE A SON 1

For those watching precious metal prices, we understand that it might seem as if converter recycling isn’t as profitable as it used to be. But we’re here to prove that it’s just a misconception. Let’s explore precious metal market prices and unit values from 2017 to 2023 to prove it.

Platinum Group Metals & Their Market Prices from 2017 to 2023

Converters are valuable because they contain platinum, palladium, and rhodium. To understand why converters remain a profitable recycling venture, let’s examine the prices for these precious metals through the years.

Platinum Bound

The average price for platinum in 2017 was $948.86 per troy ounce and dropped to $880.53 by 2018. By the end of 2019, platinum had an average price of $863.02 with drops as low as $785 throughout the year. In 2020, the average price for platinum was $882.63 and jumped to an average of $1,092.74 in 2021 due to a rebound in demand after the pandemic. In 2022, platinum saw prices as high as $1,151 and lows of $831 and finished the year with an average of $960.51. With a handful of weeks left in 2023, platinum had an average of $973.97 by early November. The data shows that platinum remained a profitable metal from 2017 to 2023. We’ve also noticed that platinum has a higher market value now than it did in 2017, despite recent fluctuations in prices.

Pt Pd Rh PLATINUM

PALLADIUM

RHODIUM

What About Palladium?

In 2017, palladium ended the year with an average of $1018.71. In 2018, palladium had a yearly average of $1,028.40 and climbed to $1,536.74 in 2019. 2020 and 2021 were exceptional for palladium because of unforeseen factors, such as the pandemic. Prices averaged at $2,192.54 in 2020 and $2,397.15 in 2021. In 2022, palladium had an average value of $2,114.18. As of 2023, palladium has an average of $1,392.61, with highs reaching $1,802 and lows dropping to $1,101. These metrics prove that palladium experienced a price surge during the pandemic, but prices remain higher than they were in 2017.

Rhodium Focus

Rhodium finished 2017 with an overall average of $1,012 and surged to $2,052 by the end of 2018. In 2019, rhodium climbed even higher, averaging $3,605 and by 2020, it more than doubled to an average of $8,710. With unprecedented market realities affecting the metal, rhodium rose to

DESPITE LOW INDUSTRY VOLUMES AND MARKET VOLATILITY, PRECIOUS METAL AND CONVERTER UNIT PRICES HAVE SEEN AN UPTICK IN VALUE.

With a background in advertisement, Joelle Boivin lends her talent to PMR, helping them break down complex industry terms and processes into informational content. PMR believes in equipping recyclers with industry knowledge, giving them the tools to gain more market share, grow their operations, and reach their business goals. And with Joelle on their team, PMR continues to be a customer-centric processor that helps recyclers reach above and beyond.

ISTOCK.COM/ART_RICH

Three reasons why you shouldnʼt ignore your catalytic converter operations.

AUTOMOTIVE RECYCLING

BY JOELLE BOIVIN

an average of $18,074 in 2021. In 2022, rhodium had an average of $14,310. In 2023, rhodium had an average of $6,054 per troy ounce. These statistics demonstrate that rhodium’s price is six times higher now than 2017. Despite a never-before-seen market reality during the pandemic, rhodium remains a valuable precious metal.

What Does That Mean for Converter Prices?

In 2017, low grade foreign units were worth approximately $50. Fast forward to today, and these units are fetching around $81. Higher grade converters are now worth $100 a piece. That means prices are twice as much as they were six years ago, despite decreasing industry volumes and volatile market trends. Catalytic converter recycling businesses are still profitable today, both long term and short term. Companies that were earning $69.03 for a mixed lot of 100 converters in 2017 are now getting $91.18 converters in 2023. Other converter recyclers have seen a similar trend, with the value of a mixed lot of 100 converters increasing from $77.97 in 2017 to $101.67 in 2023. This equates to an approximately $23 increase per lot over a six-year period. It’s for this reason that converter recycling remains a highly profitable venture. Despite low industry volumes and market volatility, precious metal and converter unit prices have seen an uptick in value. By giving your converters the attention they deserve, you can tap into an additional revenue stream that can significantly benefit your business.

Any Extra Revenue That Comes to Your Business is Essential RE A SON 2

In a business landscape where industry volumes are decreasing and consolidation trends are looming, any opportunity to maximize your revenue is a chance to gain an edge. We understand that some companies prefer sticking to traditional strategies that worked in the past, but embracing new approaches can set you ahead of the competition.

Capturing opportunities to make extra revenue starts by having a processing partner that helps you achieve your goals. Your partner should provide low lot requirements and fast turnaround rates that assists you in shipping converters and receiving quick payments. This way, you’ll be able to reinvest your capital into what really matters: growing your enterprise and capturing more market share. In this business, getting a competitive edge is critical. That’s why you should be doing everything you can to capitalize on every facet of your business. We understand, though, that converter recycling in today’s market seems like a risk. That’s why we’re giving you the insights you need to continue your converter ventures with confidence.

You’ll Exceed Your Goals with the Right Processing Partner RE A SON 3

A processor that adapts to your unique needs can help you thrive in any market. But how do you know if you’re working with the right processor? Here’s what you should look for to help you mitigate risks in your converter business.

Low Lot Requirements

You should be getting flexible lot requirements that allow you to ship as frequently as you want. This helps you capture market trends that meet your needs before the market changes again, helping you get a steady revenue stream all year round. Flexible lot requirements also allow you to ship smaller lots and get separate assay results, helping you get a strong understanding of your material composition, profitability, and real time insights for each location. You should also benefit from transport solutions that streamline your operations. Your processor should have brokerage partnerships or economic transport solutions that collect your converter lots from each yard. This way, there’s no need to consolidate your material at a single location to send for assay.

Rapid Turnaround Rates

Quick turnaround times help you capitalize on your material and reinvest your dollar into your business quickly. Your processing partner should offer a turnaround rate that helps you grow your enterprise that much faster. A rapid turnaround should give you a steady revenue stream every month. You should be looking at processors who offer a 10 – 15-day turnaround rate so that you can profit from your material at a rate that meets your financial needs; bi-weekly, monthly, quarterly.

Comprehensive Buying Tools

Your processor should be offering tools that give you fast pricing and evaluation knowledge, like photo grading or VIN & TRIM to converter price. This way, your buyers will have the information they need to make quick and profitable buying choices. It’s important to note that these tools should follow current market developments. When your buyers have converter prices that reflect current PGM market values, they’ll be offering the most competitive prices, giving them a sharper edge and helping you grow your converter volumes profitably. The right processing partner will not only help you adapt to the current market reality but also help you thrive in it. No one should have to meet lot requirements that don’t adapt to their business nor to the market they’re operating in. No one should have to wait 90 days to get their assay results and their payment.

The New Reality Is Speed

If your processor isn’t helping you adapt to that reality, it’s time to switch to a different business partner. Partner with a processor who’s got two hands on the wheel and a forward-thinking mindset. Don’t ignore the profit potential in your catalytic converter recycling business. Thrive by capitalizing on it and gaining a competitive edge that others overlook. For more information, visit PMR’s Resource Center at pmrcc.com/en/newsblog/. TB

AUTOMOTIVE RECYCLING

BY KRISTI WERNER

Preparations for URGʼs 2024 conference in St. Louis, MO are in full swing.

his year’s theme, “We Are ONE,” is a perfect fit for our annual conference now that URG and PRP will be hosting side by side, once again! We went back to our roots and became ONE for the better, not only for recyclers, but for vendors as well. When we come together as ONE, for the better of the industry, it benefits everyone. This is a trend I hope to continue as we move forward! When I first started in our industry, the concept of working as one is what made me love it so much. If someone from outside our industry came to our conference, they would never realize recyclers and vendors attending are competitors. What other industry will share key things that have helped them succeed in their own business with their own competitors? I can’t think of any. There is no comparison to the family dynamic within our industry.

Working as ONE is vital to the success of our industry. It is important that everyone collaborates and shares ideas with one another, because everyone has different views on how to solve a problem. Bringing together different views as ONE will get you to think differently, and help you get the best answer to your problem.

Change in our industry is a given. With that in mind, we need to adapt and make sure we all remember that sticking together is key to everyone’s success. Our rekindled partnership with PRP already has brought another organization to follow suit. RCD (Recyclers Cross Dock) has decided to move their 3 regional meetings they host each year, to one meeting at our conference. This will make it easier for recyclers and vendors that attend multiple shows a year to see and do more in just ONE show. As we continue to go back to our roots, we also decided to bring back the focus

Kristi Werner is an 18-year veteran of the automotive recycling industry and was named CEO for United Recyclers Group (URG) in 2023. She is credited with helping recyclers take back control of their data so they can integrate with new platforms not previously available to them. She received her Bachelor’s degree from St. Cloud State University and her Master’s from Colorado Technical University. She joined URG in 2011 and became CTO in 2021.

TOOLBOX EDITION

we had on sales and production training from past conferences. Our upcoming Saturday session schedule contains a fantastic lineup of sales and production classes from talented guests within our industry. That Saturday evening, we will also be hosting a mixer for everyone to socialize, make new friendships, and catch up with old friends! Our Friday sessions are jam packed as well! Starting off with our motivational speaker Ross Shafer, we have an array of sessions for owners and managers that are sure to engage everyone in

attendance. Topics range from AI, to EV, to recession planning, marketing, buying…name a hot topic and we are most likely covering it. We also have a lot of great events planned for our show. This year, we are changing it up a bit for Thursday and

not only hosting our annual scholarship golf tournament but having the National Auto Body Council (NABC) host a F.R.E.E. (First Responder Emergency Extrication) event and tours at the MCI manufacturing plant. This will give attendees who don’t golf an alternative outing. Thursday evening, we will host a meet and greet at the St. Louis Arch with food and entertainment and tram rides up into the Arch itself! On Friday, NABC will be giving away cars to deserving nominees, which will lead into our Friday night auction event at the PBR bar inside of Ball Park Village, attached to the Cardinals’ stadium. I have been informed that there IS a mechanical bull in the bar, so beware! The URG 2024 conference is going to be the elite show of the year, and I am looking forward to seeing you there. Don’t forget! You don’t need to be a URG or PRP member to attend, but if you aren’t a member, you couldn’t pick a better time to join and become ONE with the top recyclers in the U.S. and Canada! TB

AUTOMOTIVE RECYCLING

BY MAURA KELLER

Plugging Into Success

he Automotive Recyclers Association’s (ARA) newest president, Nick Daurio of Daurio Auto Truck in Pueblo, Colo. “took the gavel” as the organization gathered to celebrate its 80th anniversary at this year’s Annual ARA Convention & Expo in Kansas City, MO. “We were excited to see the culmination of many phone calls, discussions, and decisions come together, resulting in a wonderful event celebrating our industry and our association,” says Natalie Miller, Chair of the Annual Convention Educational Planning Committee for the 80th ARA Convention & Expo. “We were also excited to see the increasing international presence of attendees. We encourage people to reach out and send in ideas as we begin to plan for next year’s event.”

Leading the Charge

One thing’s for sure, the automotive industry is experiencing an unprecedented explosion of technology over the past decade. Opening keynote speaker, Ryan Mandell, director, claims performance, auto physical damage solutions at Mitchell, pointed out that today’s vehicle complexity is keeping the industry on its toes. Namely, what’s happening in the way manufacturers are designing vehicles, what’s happening with the way those vehicles are getting repaired, and the way that we’re seeing consolidation taking place in the repair space,

Shan Lathem and Nick Daurio at the presidential gavel exchange. is affecting auto recyclers’ businesses and the success of their organizations. “Today’s insurance companies and body shops are moving away from writing estimates next to the car and going towards writing estimates from photos and even processing estimates through artificial intelligence for straight through processing. The industry is going to see

more of this in the future – more of a focus on digital processes, and less on the legacy systems that we’ve been so accustomed to,” Mandell says. Today in the United States, more than 30% of collision repair estimates that are done on vehicles are prepared virtually, meaning that no one ever sets foot near to the car to write that initial estimate. And that number is increasing. So when auto recyclers think about the path forward, Mandell says they have to remember that the future of claims, including warranty claims, is going digital. “This means that when you have more things that are being done electronically, your inventory accuracy becomes so critical to your business’s success as more of these systems are relying on what is in the inventory system, what is actually showing up digitally, as opposed to what they’re finding via a phone call,” Mandell says. “That means that the accuracy and visibility of your data is critical. You have to have your data out there in as many places as possible so that these systems are picking up on it.” OEMs also are going to continue to play a larger role in the overall auto recycling parts ecosystem. OEMs look to control the brand experience, which is critical for OEMs as they know that if they don’t have a good brand experience for one of their vehicles that is in an

Based in Minneapolis, Minnesota, Maura Keller is a seasoned writer, editor, and published author, with more than 20 years of experience. She frequently writes for various regional and national publications.

CONVENTION PHOTOS: CARYN SMITH

At the recent 80ᵗʰ ARA Convention & Expo, industry professionals came from near and far to collaborate and learn from one another, while ushering in a new president.

TOOLBOX EDITION

accident, the odds are that customer is going to go buy a different brand. “Research has been shown about 60% of consumers who have a negative collision repair experience will switch brands and vehicle after that,” Mandell says. “So OEMs are going to represent a larger opportunity for recycling in the future.”

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The Evolution of Change

network With Your Colleagues

Speakers Ryan Mandell, Mark Brown (with wife Joanie), and Shannon Nordstrom at the 80th ARA Convention & Expo in Kansas City, MO.

In addition to advancements in technology, the consolidation of industry players continues to change the landscape of the auto recycling industry landscape. During his recycler keynote speech, Mark Brown of Brown’s Auto Salvage, discussed the large number of independent, mom-and-pop small businesses dotting the auto recycling industry landscape and the overall impact that these small businesses continue to have on the industry today. Brown shared the story of Brown’s Auto Salvage, which was founded in 1976 when Brown was age 18, and the myriad of trials, tribulations, and challenges that plagued the company through the early years. Brown stresses that the family values that are pulsing through many auto recycling facilities have created that “earn and learn” atmosphere that we have in this industry. They represent the core fabric of what makes our country thrive, supporting the social fabric of American life. “Small businesses contributed 42% to the gross domestic product to the United States. Let that sink in – family-owned, independent, small business, contributed 42% of all the money made in the U.S last year. You same folks employed 46% of the American workforce – 61.5 million people. And the majority of those people work for companies that employ fewer than 100. And when interviewed

AUTOMOTIVE RECYCLING

BY MAURA KELLER

about why they work for small business, the most common answer was because they feel valued, as people and their ideas and contributions are treated as important,” Brown says.

Leveraging Your Most Important Assets

While Mark Brown’s motivating story of starting his own company at a very young age, helps attendees celebrate of the impact small businesses have on the U.S. economy and the fabric of our nation, recycler keynote speaker, Shannon Nordstrom, vice president and general manager of Nordstrom’s Salvage, continued to explain the vital role focusing on parts, processes and, more importantly, people, can have on a business. Throughout his tenure at the company, Nordstrom has helped grow his family’s business, which is situated on the family farm, to now include numerous divisions, full-service auto recycling, installation, diagnostic service centers, as well as a nationally syndicated radio show, “Under the Hood,” which is broadcast to more than 250 stations across the country. When looking back on the history of his family’s company, Nordstrom shared the need for each family business to celebrate their own individual successes along the way.

Nordstrom explained that auto recyclers should not get caught up in “the gap.” To Nordstrom, the gap is when you look at something else, or somebody else, and that’s what you’re going to measure your expectations against. “Remember to measure your success from looking backwards because you don’t look at your own journey to be able to say here’s where we were,” Nordstrom says. “Now I’m here. Wow, we came a long way. And you can find encouragement in that. It’s hard to find encouragement when you’re when you’re constantly looking at somebody else.”

Peer-Based Learning

One thing is for sure: Auto recyclers enjoy sharing insights, tips, and knowhow with fellow recyclers. After the three keynote speakers shared motivational and inspiring insights with attendees, attention was turned to the myriad

of panels and presentations from top industry experts. From parts grading to self-service marketing to increasing gross sales, the topics covered during the three-day convention and expo were far-ranging and provided educational opportunities aplenty for attendees. Of course, the 80th ARA Convention & Expo would not be complete without the over 90 exhibitors who came to share their products and processes with industry professionals. Marc Waterman, channel sales manager at ETE Reman says “It’s great to be here. It’s like a family reunion. We really enjoy connecting with everyone in the industry.” For Doug Meece, head buyer and general manager with 366 Process, attending the annual convention and expo allows him to meet different people who he may not normally meet with. “There’s a sense of camaraderie with people in the industry and the opportunity to learn new things.” TB

S AV E T H E D AT E !

TOOLBOX EDITION

BY THERESA COLBERT

Kirchhayn Auto Parts & Recycling in Fredonia, WI

t’s funny because normally a “participation award” is given to everyone. But in this case, the participation award only goes to one yard – Krichhayn Auto Parts & Recycling. The owners, Heather and Terry, along with managers, Scott and Bob, are committed to continuing education. They want to learn and grow the business more than ever before. When I saw them at the Auto Recyclers of Michigan (ARM) show this year, I was shocked to see how many people they brought with them. They had so many people in one of my classes that I had to ask, “How many employees did you bring with you?” The answer – 16! Then, you know me, I had to ask, “How many employees do you have at the yard?” The answer – 17. “What? You brought almost your entire team?” Every employee had the same answer to my question “Yes, we want to learn.” The Kirchhayn team is so amazing that they gave up T-ball games, ballet lessons, and an entire Saturday to learn. They also brought four people to the Automotive Recyclers Association (ARA) show in Kansas City – spending time and money to go to classes and meet other recyclers. I am so dang proud of every single Kirchhayn employee that they all get the “Theresa Participation Award for 2023!” When I go to recycler tradeshows, I’m always curious to see how many employees are from the same yard. Believe it or not, some of the owners of larger businesses will bring every single one of their employees to a tradeshow. The yard shuts down for a day or two. During that time,

they’re missing chances to sell, and then they’re coming back from the tradeshow facing catch-up work. Why would they let that happen? Because these recyclers know a little secret – in our industry, you just can’t get better at your job without continuing education. And when I say “continuing education,” I really want to stress the “continuing” part. Auto recycling is always changing. Every year, more sales happen online. We all know that’s the case, but do you really know what your yard should be doing differently, as things change? Do you know what the latest tools are for selling online? Another example: Electric vehicles are becoming common. I see the charging stations all over the place now. Would you rather learn about how this new tech is changing the industry by Googling “EVs” and hoping for the best, or by attending a class with an expert who actually works with EVs? If you attend an ARA event, you can get the second option. When I go to tradeshows, I don’t just learn from the presentations. I learn a lot from other attendees. Other yard owners have faced the same challenges my business faces, and they’ve been generous with their knowledge. I always pick up tips and tricks. I’ve had experiences where I’ve gone to a tradeshow, and just a lunch with the right group of recyclers made the whole trip worth it.

The networking opportunities also help – I’ve made partnerships with other yards. Through brokering and more, we’ve been able to really help each other out. In my experience, conferences are well worth the time and money (especially for new and small yards). If you’re thinking, “Well, I’m trying to make money, not spend it getting into tradeshows,” I want to remind you that, really, these events don’t cost. They pay – dividends. You’re going to learn something that helps you run your yard more eﬃciently, or something that boosts your bottom line. But there are also training opportunities you don’t need to travel for. Car-Part. com has free webinars for its recycler customers. And they aren’t just onesize-fits-all lectures. You can ask experts questions that affect your business. If you’re trying to sell more parts online, it’s a great way to learn what tools are available, and a great way to learn best practices. As always, have a great month. Email me at TheresaC@Car-Part.com, text or call me at 859-802-2382 if you have any comments, questions, or need help finding recycler events in your area. TB

Theresa Colbert owns Recycled OE Parts in Richland, MO opening it from scratch 3 1/2 years ago. For the last 13 years, she is a Sales and Training Specialist at Car-Part.com. Her goal is to find the correct product to fit each customer and make sure that they are trained to use it. Reach Theresa at (859) 802-2382 via phone call or text, or email TheresaC@Car-Part.com.

AUTOMOTIVE RECYCLING

BY SUE SCHAULS

FOR MORE THAN AIRBAGS

very auto recycling facility should have a written recall policy, which is a policy that outlines the procedures for handling parts that have been recalled by the National Highway Traﬃc Safety Administration or NHTSA. Recently, the focus has been on the massive airbag recalls. According to NHTSA, “Approximately 67 million Takata air bags have been recalled because these air bags can explode when deployed, causing serious injury or even death. Long-term exposure to high heat and humidity can cause these air bags to explode when deployed.” https://www.nhtsa.gov/ equipment/takata-recall-spotlight. Another massive recall is looming too. “U.S. auto safety regulators says 52 million air bag inflators should be recalled over rupture threat.” https://www.reuters. com/business/autos-transportation/ us-says-52-million-air-bag-inflatorsare-unsafe-should-be-recalled-2023-09-05/. While airbag malfunctions continue to drive recalls and public awareness, it also serves as a good reminder that other vehicle parts can be recalled for various safety issues as well. Over a year ago, the ARA announced that eBay Motors required ARA Recall Certification to sell airbags on their platform. Recall certification can only be obtained by those members that are certified auto recyclers or CAR Certified.

CAR Certification is based on safety and environmental regulatory compliance. Recall Certification was originally carved out of the Gold Seal program for quality and customer satisfaction to set standards for the ongoing management of recall information and to provide guidance on in-house procedures for processing recalled parts. The standards are common sense practices meant to protect an auto recycler from selling recalled parts. The standards also address limiting liability in the event a part is recalled after being sold. • does not sell Recycled Original Equipment (ROE) auto parts that have safety recalls issued by an Original Equipment Manufacturer (OEM) for re-use or repair of

another vehicle. Safety recall parts are only sold to factory authorized collectors assuring a documented OEM-approved destruction. Recalled parts may also be sold for litigation purposes. • conducts a VIN check for safety system recalls when the vehicle is inventoried. If recalled safety items are found, the recalled part is not entered in inventory for sale or is assigned a recall code and/or is struck as not saleable for reason of recall in the inventory management system. Recalled parts are removed (or destroyed) from the vehicle and processed for scrap or bounty collection. Safety parts known to have recalls such as airbags are also VIN checked for recall at point-of-sale. If a recall exists, then the part is struck as not saleable in the inventory system and processed for scrap or factory authorized collection methods assuring documented OEM-approved destruction techniques. Deployed airbags do not need to be removed to be checked in using the factory authorized collectors. The point-of-sale recall check must be made at the government website: https://vinrcl.safercar.gov/vin/ or https://www.nhtsa.gov/recalls For ARA Members with login: https://ararecalllookup.nsvrp.org/ The facility enters each ROE part into the inventory management system with

Sue Schauls is an environmental and safety expert whose career started 28 years ago at the Iowa Waste Reduction Center at University of Northern Iowa. She is currently the Executive Director of the Iowa Automotive Recyclers trade association and is the compliance consultant to the industry through the ARA’s Certified Auto Recyclers (CAR) program and the I-CARE program – Iowa Certified Automotive Recyclers Environmental Program. Sue assists recyclers in maintaining environmental and safety compliance.

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In light of the recent massive airbag recalls, it pays to establish a general recall policy and define the steps required to properly handle all recalled parts.

AUTOMOTIVE RECYCLING

BY SUE SCHAULS

a unique ID that provides traceability for the source and sales destination. Parts, including brokered parts, are listed on invoices with the source VIN. Upon direct notification from the manufacturer, this facility processes recalled parts by correlating the manufacturer’s recall by VIN to the facility’s stock number. All unsold parts are struck from inventory and removed from online listings such as eBay Motors and/or thirdparty broker sites. Upon direct notification from the manufacturer, recalled parts that were sold are flagged for a notification letter to the buyer, as identified by stock number in the sales record. The recall notification letter sent to the customer will be mailed with a delivery confirmation receipt. Delivery receipts will be logged. If a notification letter is returned as undeliverable, an attempt to call the customer at the phone number from the invoice and/or account will be made. This call will be logged. Customer reimbursement

and parts replacement will follow the guidelines provided by the vendor for recalled parts. Remember that airbags are dangerous goods and thus must be shipped as hazardous material or HazMat. Shipping staff must be certified every three years to prepare HazMat for shipping. The standards apply to all employees associated with the shipping of airbags, seatbelt pretensioners and hybrid batteries. Even facilities that do not sell airbags or other designated dangerous goods to retail customers must be HazMat certified to ship these parts to recyclers, remanufacturers, and factory authorized collectors such as RAS Core for bounty payment. As well, your company should be using an emergency hotline service when shipping. ARA has negotiated a deal with InfoTrac for $75 a year. Contact staff@a-r-a.org to sign up. Recall certification, or putting in place a standard operating procedure for recall management, can benefit every auto

recycling facility even if not seeking CAR certification or selling airbags on eBay Motors. Putting a policy in place now will make the facility ready when a recall comes though whether it is another massive airbag recall or a different auto part yet to have malfunctioned. As they say, an ounce of prevention is worth a pound of cure. The ARA resource for recall certification is available for all auto recyclers to view at https://aracertification.com/ recalls. ARA also has an airbag handling protocol posted on the website. The protocol is for automotive dismantlers specifically handling airbags for retail sales. The standard operating procedure helps to define the steps that must be taken to maintain the integrity of the safety device. The purpose of the document is to provide guidelines for the practice of removing an original equipment non-deployed airbag from a salvaged vehicle for installation in another vehicle. TB

AUTOMOTIVE RECYCLING

BY THERESA COLBERT

GET CAR CERTIFIED

CAR Certification is a vital step to continue selling airbags on eBay and all air-bag related items.

www.aracertification.com get calls every day from people who think eBay is no longer letting people sell airbags. This isn’t really the case – licensed auto recyclers can sell airbags on eBay, if you’re CAR certified. eBay now requires CAR certification to sell airbags. Logos cannot be modified or changed in any way. To use the logos, you must meet all ARAfamiliar, Certified For folks who aren’t CAR Automotive Recycler Program requirements. stands for “Certified Auto Recycler.” This certification comes from the Automotive Recyclers Association (ARA). My business is CAR certified. When we first looked at the certification process and saw that we’d need to pay money, order a “certification tracking record,” and participate in a “physical audit” ... Well, being busy people, we were pretty reluctant. We started out by answering the “easy questions” on the audit. (Examples: How many employees? Provide your NMVTIS number). The most time-consuming part was the pictures; honestly, it took two of us part of a Saturday to get all the pictures and load them to the site. (Examples: pictures of your parking lot, fire extinguishers, first aid kits.) But we took the leap and to our surprise, we found that getting CAR certified really isn’t that diﬃcult. Here’s the process in a nutshell: 1. Be an ARA member or sign-up for membership at www.a-r-a.org. 2. Sign up for CAR certification at aracertification.com. There’s a $250 fee. 3. Complete a physical audit of your business. This is the biggest thing that goes into CAR certification. You’ll need to upload photos from your business.

WE TOOK THE LEAP AND TO OUR SURPRISE, WE FOUND THAT GETTING CAR CERTIFIED REALLY ISNʼT THAT DIFFICULT. Logos for Use By Permission Only from the Official ARA Certified Automotive Recycler Program.

4. ARA will grade your audit. You’ll need to score at least 70% in each section. If you pass, you’ll get an email and a certificate in the mail, and ARA will contact eBay, to let them know you passed. 5. eBay will call or email you, letting you know that you’re good to go! After you’re certified, you’ll want to look at your eBay listings and make sure that they have the necessary disclaimers. If you use Checkmate, just call Car-Part. com (859-344-1925) to ask for an updated eBay template with a recall disclaimer. The web designers can do this for you,

and it typically only takes a day or two. Also, Car-Part.com’s trainers can assist you with setting up your eBay business policies. You’ll need them to sell airbags on eBay. The trainers can also help you “clean up” your existing policies, and help you add a hazmat/airbag policy. In 2024, to keep your certification, you need to be a member in good standing of ARA, and you will need to have an ARA-certified third-party auditor to come to your yard, and do an onsite audit. And I want to warn you – you really have to get CAR certified to sell airbags or airbag-related components on eBay. If you’re not CAR certified, don’t even try to sell things like airbags, seatbelt pretensioners, airbag sensors, SRS parts, steering wheels with airbags, etc. eBay has already started banning people who list these parts without being certified. It’s not worth it! I think the best part of getting CAR and HAZMAT certified (even though we don’t sell air bags at my yard) is that we used to feel so scared thinking, “What do we need to do to be compliant?” Now, we have it all laid out in front of us. Are we perfect? NO! We only got a “C” on the test! You guys know I am an “A” kind of girl! I have big plans to get an “A” very soon! As always, if you have any questions, please get in touch. TB

AUTOMOTIVE RECYCLING

BY JAKE NAWROCKI

The future is filled with expected and unexpected changes. Itʼs time to embrace and continually evolve to help our companies grow.

Now we are faced with changes in the technology of the vehicles we dismantle and recycle. I would say that in-between all of those big changes, were hundreds, if not thousands, of smaller changes that the industry has made over the years. Some changes are easier to make than others, but we constantly face change. Just as has been happening for the last century, this coming year is going to bring changes. I don’t even know what most of them are, but they will inevitably happen whether we like it or not. At our yard, we have a plan for some changes that we hope will make us a better company with a future full of relevance and sustainability. We have long-range goals and plans that will require change, but the one that we all struggle with are the changes that we must make due to circumstances outside of our control – things like changing technology, regulation, or even societal changes. If we step back and try to see it all, it can be overwhelming. But for 2024, I urge you not to focus on everything all at once. Instead, look at the changes

I KNOW YOU ARE GOING TO RISE TO THE OCCASION, AND AS AN INDUSTRY, WE WILL ALL BECOME BETTER AS WE ADAPT TOGETHER.

in smaller segments which are easier to handle. “Take it one day at a time,” they say. The calendar I have says there are 366 days in 2024, which is a leap year. That is a lot of small steps we can take towards those changes. Instead of focusing on the changes we have to make, it is also good to spend time thinking about the changes we get to make: improvements to our facilities, our business, and ourselves. You don’t have to make a resolution, you have only to make a plan. You may insert your favorite cliché here. Charles Darwin is credited with proposing the theory of survival of the fittest. That isn’t quite right. What he was really proposing was survival of species that were able to adapt to change – changes in climate, predators, forage, etc. While I do not in the least believe that animals and the human race are evolved over the millennia from some random life form that was banged into existence, there is no denying that things evolve and change. So don’t worry if you think your business may not be the fittest, just focus on being the most adaptable. My favorite maxim comes from our former ground water consultant, Bill West. I remember him saying in regard to business, “Little pigs get fat, big pigs get slaughtered.” Don’t worry about the changes coming. I know you are going to rise to the occasion, and as an industry we will all become better as we adapt together. TB

Jake Nawrocki, with sister Katy Joles, own and operate Rocki Top Auto Recyclers in Glen Flora, Wisconsin. The company was formed in 1988, and Jake and Katy took over operations in 2009. Since that time, they have been working both in and on the company, in a region that is economically challenged. “Our goal is to make Rocki Top Auto a destination.” Contact Jake at 715-322-5774 or rockitopauto.com.

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here are going to be huge changes to our industry in the coming year. The changes will be expensive. They will be hard to learn. Sales will drop and expenses will soar. Have you ever felt that way? The fact is, there are big changes coming, but that isn’t a new thing. Big changes came when the industry was brand new in the early part of the twentieth century and the pioneers of our industry had to figure out how it worked. Big changes came during World War II when scrap metal went to the war industry, and manufacturers stopped making cars and trucks for civilian consumers. Big changes came when environmental concerns started to affect the way cars were processed or even thought of. New ways of thinking and doing were implemented by even the smallest of salvage yards as it became apparent that yard management systems, as well as a means of marketing outside of the local area, were going to be necessary if we wanted to stay in existence.

AUTOMOTIVE RECYCLING

BY DJ HARRINGTON

Scholarship Fundraising

… from a Hat?

The take-aways from the recent ARA Convention have far-reaching implications.

ow that I have your attention, here are two pictures from the recent ARA Convention in Kansas City. As you know, ARA just recently celebrated their 80th Annual Convention and Expo. One of the pictures with this article has three good-looking guys sporting some special hats. Left to right: D.J. Harrington, The Car-diologist; middle, J.C. Cahill from Vin Match Pro, and right, Bo Wroten from Recycler’s Cross Dock. Now, look at the hats all of us are wearing. My hat and Bo’s hats are copies of J.C.’s real hat. Vin Match Pro was giving them away for free at their booth. I’m in Baltimore, Maryland at the largest tow show in the world with a total amount of 10,000 in attendance. I was at a special dinner for the scholarship fundraiser while wearing my hat and minding my own business. The auctioneer asked me, “Doc, would you sell that hat on your head, and let the proceeds go to the towing association scholarship fund?” My response, “It depends on how much.” One-man yells, “$50,” and from the back of the room, another swiftly yells, “$100.” Then the first man responded with, “$150.” Amazed at the price, I agreed to let it be sold. The hat sold for $400. The auctioning of my hat wasn’t

over either. INA Towing Company that tows for Amazon, Home Depot, Lowe’s, American Red Cross and for all the big food stores nationwide, graciously shouted, “I will double whatever you get for D.J.’s hat.” So, the scholarship fund received a total of $800 from my hat that J.C.’s people had given me to wear at the convention. Amazing, huh? Now, I am hoping that Vin Match Pro will send me another hat to replace the one I gave up for this good cause. The other picture, which is also from the recent ARA Convention & Expo, is of Shannon Nordstrom and me. Shannon is

from Nordstrom’s Automotive in Garretson, SD. Shannon was the keynote speaker Saturday morning. He did a wonderful job and is a very gifted speaker, a great husband, wonderful dad, and a special son to Art and Marie. As you might know, Art and Marie started Nordstrom’s on a dairy farm, and today Nordstrom’s is a world-class, state-of-the-art recycling facility. Do yourself a favor this New Year, start listening to Shannon’s Road Show, “Under the Hood Show.” It is America’s favorite and largest car talk-radio show that’s airing on over 240 stations. Make it a New Year’s resolution. Listen to the

D.J. Harrington is the President and Chief Executive Oﬀicer of Phone Logic, Inc., an international training company based in Atlanta, GA. He serves as a consultant and trainer to over 1,000 privately-owned businesses throughout the country, training personnel at all levels of the company, from the dispatcher to the customer service and sales staﬀ. Please visit his website for more information at www.djsays.com.

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radio or go directly to the podcast. You will garner a lot from Shannon and his two sidekicks, Russ, “The Super Tech” Evans and Chris Carter, a 20-year broadcasting veteran who keeps the show real because Chris is the only one that is not a “gear head.” I believe ARA had three great speakers at this convention. Shannon on Saturday, Ryan Mandell, who is the Director of Claims Performance at Mitchell spoke Thursday at the opening keynote. He’s a very smart guy that knows our industry. The third speaker knocked the cover off the ball and out of the park. Some of us heard him speak a year or so ago at PRP in New York. At this ARA Convention, he was the keynote speaker on Friday – the one and only Mark Brown of Brown Auto Salvage from Bomoseen, Vermont. Mark did such a wonderful job that I

HEARING HIM WAS LIKE GOING TO COLLEGE FOR THE RECYCLING INDUSTRY, LEARNING HOW TO BE SUCCESSFUL IN A FAMILY-OWNED BUSINESS. wish we had filmed it because we could have sold many copies of him speaking. Mark spoke of his wife, Joanie, and how the two of them started in business. For over 40 years, they worked side by side, providing used parts to New England

and the U.S. Today, because of their hard work, they are the largest and most technologically advanced auto salvage facility in the U.S. Mark is one hell of a speaker because he captivated the whole room. If he was speaking again somewhere, I would be there. Hearing him was like going to college for the recycling industry, learning how to be successful in a family-owned business. Mark Brown and Shannon Nordstrom could teach all of us how to be better people in life and in the auto recycling industry. What we need to do now is just follow their example. They have created a pathway to how they did it, so let’s just follow what they did. You may feel that you “know” the business, but these two men will help you “grow” your business. Have a great New Year! See you on the podcast. TB

AUTOMOTIVE RECYCLING

BY GARRET SCHWENK

PGM

Navigating the storm in 2024 as the platinum metal market evolves.

The Impact on Scrap Catalytic Converters

One of the most noticeable repercussions of the PGM price fall has been its substantial impact on the value of scrap catalytic converters. These converters, prized for their PGM content, have seen a decline in worth, posing challenges for recyclers and industries reliant on recycled PGMs.

Platinum and Palladium in Oversold Condition

Both platinum and palladium, essential components of the PGM family, are currently considered to be in oversold conditions. This overselling indicates a market sentiment where prices may have dropped below their intrinsic value, presenting potential buying opportunities for investors.

Diverging Fortunes: Platinum vs. Palladium

Looking ahead, market analysts predict a contrasting future for platinum and palladium. While both metals are expected to rebound, platinum is anticipated to recover to a greater extent than palladium in 2024. The reasons behind this divergence are multifaceted and could include shifts in industrial demand, supply dynamics, and market sentiment.

Palladium’s Projected Range Bound

Palladium, on the other hand, is forecasted to become range-bound – around $1,000 per troy ounce. This stabilization could be attributed to a variety of factors, including a balance between supply and demand forces and the resolution of market uncertainties.

Rhodium’s Waiting Game

Rhodium, another key player in the PGM market, currently finds itself in an oversupply situation. The waiting game begins as the market anticipates a resurgence in catalyst demand from Original Equipment Manufacturers (OEMs). The price of rhodium is poised to increase proportionately if new car sales recover, underscoring the interconnected nature of the automotive and PGM markets.

PGM Giant Sibanye-Stillwater Adapts: Cautionary Note on Palladium and Industry-Wide Restructuring

In a significant development within the PGM market, Sibanye-Stillwater recently issued a cautionary note about further adjustments at its palladium operations in the United States. The company cited an ongoing decline in palladium prices, which have dropped faster than anticipated. This announcement comes on the heels of a broader strategic move by the South African mine, as it recently unveiled plans to cut over 4,000 jobs across its platinum group metal (PGM) mines in its home country. Additionally, Sibanye-Stillwater revealed intentions to close two unprofitable shafts as part of a company-wide restructuring aimed at positioning operations for optimal performance. This move underscores the industry’s

In their tenure spanning nearly a decade at Noble6, Garrett Schwenk has traversed an impactful journey from a Marketing Coordinator to their current role as Business Operations Manager. With a rich history within the company, they’ve honed their skills and expertise, initially delving into the intricacies of marketing before transitioning seamlessly into a broader operational role. Garrett brings a wealth of experience, leveraging their foundational marketing background to orchestrate streamlined operations, drive eﬀiciency, and foster the company’s growth and success.

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he platinum group metals (PGM) market, once a robust and lucrative space, is currently experiencing a challenging period marked by a significant drop in prices. Over the past twelve months, the mixed basket of PGMs has plummeted by half, casting a shadow on the industry’s outlook. In this article, we’ll delve into the factors contributing to this decline and explore what the future holds for key players in the PGM market.

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response to the challenges posed by the current state of the PGM market.

Today’s Platinum and Palladium Prices Surpass 15-Year Averages

Examining the 15-year average of platinum (PT) and palladium (PD) prices reveals an interesting trend as they are currently trading at levels higher than the long-term average. Despite recent market fluctuations, the present prices for both PT and PD exceed their 15-year averages. Additionally, rhodium (RH) stands out with an average of $3,000 per ounce over the same period, emphasizing its historical significance in the market. This context puts today’s pricing into perspective, suggesting that the current values for PT and PD are relatively favorable when compared to the averages over the past 15 years. This observation underscores the dynamic nature of the precious metals market and highlights the importance of considering historical trends in evaluating the present market conditions.

Charting the Course

The platinum group metals (PGM) market finds itself at a crossroads, grappling with the aftermath of a substantial price drop that has reshaped the industry’s landscape. The plummeting value of the mixed basket of PGMs over the past year has cast a shadow on the market’s outlook, impacting vital sectors such as the scrap catalytic converter industry. The oversold conditions of platinum and palladium present a complex scenario, offering potential investment opportunities while reflecting the challenges faced by these essential metals. Looking forward, the diverging fortunes of platinum and palladium set the stage for a nuanced recovery, with platinum expected to rebound more robustly in 2024. Palladium, on the other hand, is projected to stabilize within a defined range, emblematic of a delicate equilibrium between supply and demand forces. The waiting game for rhodium, amid an oversupply situation, hinges on the resurgence of catalyst demand from OEMs. Moreover, Sibanye-Stillwater’s strategic adjustments underscore the industry’s proactive response to the evolving market conditions, with a cautionary note signaling further adaptations to palladium operations. On a contrasting note, the examination of 15-year averages reveals a positive aspect, as platinum and palladium prices today outshine their historical averages, emphasizing the resilient and dynamic nature of the precious metals market. This observation prompts a reevaluation of the current values for these metals, shedding light on their relative favorability in comparison to the broader historical trends. As the PGM market navigates through uncertainties, these insights into historical performance and strategic responses serve as crucial guideposts for industry stakeholders navigating this ever-evolving terrain. TB

S AV E T H E D AT E S ! 2024 State and National Events

January 17th CIC Hilton Palm Springs January 21-23 Winter EC Meeting ARA Headquarters February 2-3 Rocky Mountain Summit Englewood, CO February 19-22 NaatBatt Carlsbad, CA March 21-23 OARA Convention & Trade Show Markham, ON, Canada April 4-6 URG Training Conference St. Louis, MO April 9-11 Hill Days Washington D.C. April 15-18 ISRI Las Vegas April 17 CIC Seattle Doubletree Sea-Tac April 18-19 Upper Midwest Auto Recyclers Fridley, MN Convention & Trade Show April 26-27 Carolina Auto Recycler’s Winston-Salem, NC Convention & Tradeshow May 2-4 ARM Road Show & Business TBA Networking Conference May 10-12 AARA 4CORNERS Golf Trade Show Chandler, AZ May 17-18 Iowa Auto Recycler Summit Des Moines, IA June 7 ARAAC Convention Charlottetown, PE, Canada July 10 CIC Denver Hilton July 18-21 FADRA Sheraton Lake Buena Vista Resort, Orlando August 16-17 TRI-STATE Indianapolis, IN September 12-14 ARNE Turning Stone, Verona NY October 23-26 ARA 81st Annual Convention Reno, NV & Expo November 5-8 CIC, SEMA Las Vegas, NV

AUTOMOTIVE RECYCLING

BY MIKE FRENCH

Never Overlook How to make sure your marketing projects have the right ingredients. PREPARATION CHECKLIST FOR EVERY PROMOTION:

his is another article in a series I’m writing about sales and marketing methods that don’t change and will continue to help businesses in the automotive recycling industry achieve predictable and measurable results. Here I’ll discuss what a lot of advertisers forget to include in the advertising projects they produce, which can scuttle results, and why checklists help remember them.

I had money to spend, but it stayed in my pocket!

I received a beautiful flyer in the mail. It had a great product and a terrific offer, and I decided to buy. But there was one problem. The sender forgot to put their contact information on the piece. There was no phone number, no address, no website, and no email address – no way of contacting them. There was no way for me to respond to their offer. I wondered to myself if they had ever figured out why their campaign had failed. I thought, “Boy, they sure were stupid to leave off something so obvious.” But then I got a phone call from a business friend. He said he couldn’t find my email or website address anywhere in my newsletter.

Good grief! He was right. I forgot to include that important information in my own newsletter. Now I really did feel stupid.

It is very easy to forget important information

Pilots have checklists for the very reason that the easy stuff is usually what we forget, even though they must do the same things repeatedly. If they were to get distracted for any reason and forget something, it could mean disaster. In fact, pilots realized the need for a checklist way back in 1935 at Wright Airfield. That’s when a Boeing experimental Model 199 four-engine bomber crashed on takeoff, killing two of the five crew members. The pilot had forgotten to unlock the hydraulic and rudder controls. A checklist was created for future flights. We need checklists for other things as well. I like a quote from Bruce Ramsey, a writer for the . He said, “Checklists are about how to prevent highly trained, specialized workers from making dumb mistakes.” So true! Another quote on the same subject is from the author of , Atul Gawande. He writes,

Headline Offer Call to Action Local phone number Toll-free number Extension numbers Web address Email address Company address Testimonials The company name Coupons Coupon expiration date Early bird bonus Guarantee Unique Selling Proposition Secondary offer Something Free Warranty Order form Association logo(s) Company logo Business hours Location map Product photos Staff photos Social media logos

Here is a list you can borrow to create a checklist of your own. It will help you make sure your marketing projects have the right ingredients.

Mike French is retired from 39 years of business in the automotive recycling industry. He is an author, publisher, consultant and speaker. Mike is founder and Executive Director of Christian Auto Recyclers & Vendors Association (CARVA) and will be at upcoming recycler trade shows and events. Mike is available to speak at your group, conference or event. He loves to share inspirational stories which demonstrate how the Word of God actively changes lives. He can be reached at mike@carva.group. Visit www.CARVA.group, and/or visit www.PowerPackedPromises.com.

AUTOMOTIVE RECYCLING

BY MIKE FRENCH

ALWAYS REMEMBER THE MOST IMPORTANT INGREDIENT OF ALL: GIVE YOUR CUSTOMERS A PLEASANT BUYING EXPERIENCE WITH YOU.

“In a complex environment, experts are up against two main diﬃculties. The first is the fallibility of human memory and attention, especially when it comes to mundane, routine matters that are easily overlooked under the strain of more pressing events.” He is so right! Yes, we do need checklists for all kinds of things. This is especially true when preparing expensive advertising projects. I remember getting a phone number wrong on a direct mail piece that was mailed out to several thousand addresses. The entire campaign, of course, was worthless, and it cost me a lot of money to redo it. Since then, I have made sure all the numbers appearing on a piece are correct. It’s on my checklist of important things to check before sending a project to press. Now, while you are making sure you have included all the obvious things, here are a few more things to consider: • Include as many of the following seven key copy drivers as possible: Anger,

exclusivity, fear, flattery, greed, guilt, and salvation. • Include in your copy as many of the following evocative words as possible: Free, you, new, safety, money, guarantee, love, easy, health, proven, results, save. • Include the following triggers: 1. The answer to the customer’s greatest question, “What’s in it for me?” 2. A built-in mechanism so the reader can easily respond. 3. A system enabling you to measure responses. There you have it. That’s a concise list of important advertising ingredients to help you achieve the best results from your advertising projects. Always remember the most important ingredient of all: Give your customers a pleasant buying experience with you. That should be the first item on your checklist. Happy customers bring repeat sales! TB

NEWS

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CELEBRATING 80 YEARS!

® – Recycled Original Equipment ®

ARA 2023 Award Winners

RA announced the 2023 Award Winners at the 80th Anniversary Convention & Expo in October, in Kansas City, MO. Mike Kunkel was given the President’s Award, Mike French was given the Lifetime Achievement Award, and Slater Shroyer was named the ARA Member of the Year. Congratulations!

REGIONAL NEWS

The Future Looks Bright

BY JAY ROBERTS TEXAS AUTOMOTIVE RECYCLERS ASSOCIATION PRESIDENT

eflecting on a career spanning four decades in the auto recycling industry, I find myself more encouraged than ever as I embark on the privilege of serving as the President of the Texas Automotive Recyclers Association (TARA). The honor of leading alongside an inspirational Board of Directors, who are true champions of our profession, humbles me. Looking ahead to 2024, I am eager to seize every opportunity to enhance public understanding of our industry. As a second-generation auto recycler, witnessing a new generation emerge and contribute to making our industry stronger and more relevant than ever fills me with optimism. The primary objective of our Board of Directors for the upcoming year is to champion our industry’s cause by encouraging, educating, and empowering fellow auto recyclers to adopt environmentally conscious practices while fostering facilities that embody a progressive, modern mindset. Additionally, we recognize the social responsibility of cultivating positive relationships within our communities. I am pleased to share that the TARA Board of Directors, in collaboration with our Executive Director, Nandy Banks, has laid plans to host a Tri-State Conference and Trade Show in Austin, Texas,

We would love to hear your employee, company, and state news: toolbox@a-r-a.org

I AM EAGER TO SEIZE EVERY OPPORTUNITY TO ENHANCE PUBLIC UNDERSTANDING OF OUR INDUSTRY. scheduled for September 2024. Your participation in this event will provide valuable networking opportunities and insights to enhance and elevate our respective businesses. Reflecting on the past 50 years, during which our industry has been exceptionally beneficial to my family, I hold a deep appreciation for our association and the meaningful connections we forge daily. As we step into 2024, I invite you to join me in making this year a prosperous one for us all. Thank you for your continued dedication to the auto recycling industry. TB

AUTOMOTIVE RECYCLING

TOOLBOX® MISSION BY RECYCLERS FOR RECYCLERS We deliver the automotive recycler trade show experience to those who do not attend industry events and trade shows. We also reinforce the automotive trade show experience for those who do attend them. We accomplish our mission by being current, educational and inspirational. Each edition of the includes the following: • Educational and instructional “how-to” articles written by top industry professionals, leaders & trade show speakers. • Information from providers of industry-related products and service you typically see at industry events and trade shows.

PUBLISHED 6 TIMES A YEAR AutoRecyclingNow.com/Toolbox CELEBRATING 80 YEARS!

® – Recycled Original Equipment ®

YOUR TOOLBOX TEAM

Published by Driven By Design LLC EDITOR

Caryn Smith, Toolbox@a-r-a.org ART DIRECTOR

Jessie Sharon ADVERTISING SALES

Jay Mason, ToolboxAds@a-r-a.org

ARA OPERATIONS EXECUTIVE DIRECTOR

Sandy Blalock Automotive Recyclers Association Sandy@a-r-a.org SENIOR DIRECTOR FOR ASSOCIATION OPERATIONS; DIRECTOR OF STATE GOVERNMENT AND GRASSROOTS AFFAIRS

Jessica Andrews, Jessica@a-r-a.org SENIOR DIRECTOR OF MEMBER SERVICES & CERTIFICATION PROGRAM

Kelly Badillo, Kelly@a-r-a.org VICE PRESIDENT OF STRATEGY AND GOVERNMENT AND REGULATORY AFFAIRS

Emil Nusbaum, Emil@a-r-a.org DIRECTOR OF MEMBER RELATIONS

Vince Edivan, Vince@a-r-a.org ADMINISTRATIVE ASSISTANT

Kaitlyn Gatti, Kaitlyn@a-r-a.org EVENT MANAGER

Kimberly Glasscock (615) 476-4501 kglasscock@awardwinningevents.com

AUTOMOTIVE RECYCLERS ASSOCIATION OFFICERS PRESIDENT

Nick Daurio Daurio Auto Truck Pueblo, CO nick@daurioauto.com 1ST VICE PRESIDENT

Eric Wilbert Wilbert’s U-Pull-It, LLC Williams, NY eric.wilbert@wilberts.com 2ND VICE PRESIDENT/TREASURER

Shannon Nordstrom Nordstrom’s Automotive, Inc. Garretson, SD shannon@nordstromauto.com SECRETARY

Sean Krause Speedway Auto Parts, Ltd. Joliet, IL sean.krause@speedwayap.com IMMEDIATE PAST PRESIDENT

Shan Lathem Cocoa Auto Salvage Cocoa, FL shan@cocoaautosalvage.com ARA CONTACT INFORMATION

ARA Headquarters Manassas, VA (571) 208-0428 staﬀ@a-r-a.org www.a-r-a.org For all print and digital advertising, email ToolboxAds@a-r-a.org. For editorial or production information, e-mail Toolbox@a-r-a.org or call (239) 225-6137.

NOW & THEN

Legacy recyclers share their history to honor 80 years of automotive recycling. Compiled by ARA Staff

If you have a 25+ year Legacy Story to share, there is still time to participate in a future issue. Please send no more than 100 words – such as when the business started, original owners’ names, current owners, short description of the business and its history – along with high resolution images to Toolbox@a-r-a.org.

PAM’s Auto, Inc. After more than a decade of selling recycled parts and body/mechanical repair, PAM’s Auto, Inc. centered their focus on parts distribution, options, and premium customer service. Today, PAM’s Auto operates on 100+ acres with 65+ employees and offers an extensive line of in-stock OE recycled, OE surplus, OE reman and aftermarket options. Pat & Mike (PAM’s) are proud of the PAM’s Auto team and their journey which includes certiﬁcation to ISO9001:2015 standards covering automotive dismantling, OEM surplus, and aftermarket auto parts.

2020

1995 1991

HISTORY OF OWNERSHIP

Pat Huesers & Mike Meyer founded PAM’s Auto, Inc. as a start-up in 1991.

LOCATION

St. Cloud, MN

Rocki Top Auto Rocki Top Auto is a second generation, family-owned business that has been in business for 39 years. Rocki Top was founded on the site of a former dairy farm in rural, northwestern Wisconsin. Over the years, Rocki Top Auto has expanded its focus from local, walk-in customers to include a nationwide network of customers. HISTORY OF OWNERSHIP 1984-1998....... Robert Nawrocki 1998-2006 ....... Jake and Robert Nawrocki

2006-2009 ....... Robert Nawrocki, Jake Nawrocki, and Katy Joles 2009-present ... Jake Nawrocki and Katy Joles

LOCATION

Glen Flora, WI

THEN

NOW

® – Recycled Original Equipment ®

9113 Church Street Manassas, VA 20110-5456 USA