Link to atfPro

All the latest news for auto recyclers

Welcome to ATF professional - the site specifically aimed at Authorised Treatment Facilities and those involved with motor vehicle dismantling, vehicle salvage and other operations associated with motor vehicle depollution and recycling. Sign up for our, free monthly newsletter.
Visit from the Environment Agency? Need to apply for an Environmental Permit? Call Paul Downing Associates now for an informal chat - 07790 147084 or click here.

Trade markets require much higher availability of parts

Automated parts storage
Modern automated parts storage coupled with the latest technology will play an important role in opening up the green parts market.
The sale of second hand parts to the repair trade is a complicated business and the factors affecting it fall into a number of areas which we shall explore over the next few months. In this article we take look at the availibility of our products to the mass repair market.

Last issue we focussed on quality and the need for standards across the country that a garage or bodyshop can rely on. It’s alright knowing that the product will be of a quality suitable for the repair, but knowing you can get hold of it is another matter.

As with the quality issues discussed in the last issue, quantity is again up to us. The trade market will never develop unless ordering is simple and availability can be (almost) guaranteed. The argument that the repair trade can buy what we have available and then go somewhere else for what we don’t have isn’t going to wash. This makes it harder work for the garage and let’s face it, none of us take the hard option when it’s someone else who is paying the bill. The question is, “How can we supply in volume?”

This comes back to something that has come up before, we have to work together; we have to hunt as a pack so to speak, which is not something the dismantler in the UK has been very good at. Yes, there are small groups of auto recyclers such as the National Salvage Association (NSA) for example but what a small body can do is limited as we have to supply a national resource. This calls for many more of us working to effective systems and making our stock much more automated. Then software within the garage or bodyshop can automatically order. It has to be that easy if we want this mass market and the bright future that goes with it.

The volume is out there. We estimate that within the UK there are approximately 2,000 businesses that are authorised treatment facilities or involved in auto recycling. We are also well aware that a number of those are currently not interested in the parts side of the business and equally a number of those companies are just not up to the job. We believe what you are left with is a core of perhaps 500-750 businesses that see themselves as professional operations which want to grow and expand their businesses over the coming years. So these businesses must be where the volume of parts comes from.

Technology has to play a pivotal role in this. The systems operated for parts ordering by bodyshops and garages must be modified (or written) to allow for selection of used (and remanufactured) parts. This must include automatic ordering from a central location and supply by yards closest to the repair. We have recently spoken to a company that has been developing a system that they believe will meet this need and we hope to have a full review of its capabilities within the next couple of months. One thing’s for sure, all software in our yards will have to talk to each other for this to work.

There is another tricky issue that this raises - pricing. A system operating on this scale would have to also operate a fixed pricing system. Bodyshops and garages are not in the business of routing through a list of different yards all offering different prices. No, we would have to operate a pricing structure that is based on the new part price and related to the quality categorisation of that part. This way, everyone knows just where they stand.

Naturally the detail would be far more complex but without such standardisation we are never going to capitalise on the true value of our market place. Let’s face it, the time has never been better; technology is at a point to easily accommodate the requirements; we have key auto recyclers who now have experience of working with trade and insurance on a limited basis; and, we have a country that is almost bankrupt. The time for more effective repair costs could not be better!

In the next issue we shall look at the third key problem; the credibility of the auto recycling industry.

Developing a national green parts market for our industry is one of the major themes at this year’s CARS expo. There will be seminars and forums where we as an industry can move green parts forward.

Latest stories

Who’s buying our salvage vehicles in Europe?
It seems that there are some questions surrounding the purchasing of vehicles by other European countries, in particular Cat B vehicles. One of our readers asked us the following:
Diesel and petrol car sales to be banned from 2040
In recent news and following on from France’s commitment to take polluting vehicles off the road by 2040, Britain has also followed suit by banning the sales of all new diesel and petrol cars and vans by 2040. The final plan is due by the end of July.
Palladium cost has increased, hitting a 16 year high
Automakers may have to decrease the use of palladium and seek an alternative due to higher prices of the metal
There is a use for rusty old cars!
This years’ Glastonbury featured ‘Cineramageddon’ – an interesting use of old vehicles.
The pressure’s on for tyres!
The Tyre Recovery Association (TRA) and National Tyre Distributors Association (NTDA) warn of rising costs on tyre recycling due to regulatory changes and market conditions, factors that will affect used tyre collectors and re-processors.
Volvo to go electric by 2019
Volvos plan is to launch five electric models between 2019 and 2012 and a number of hybrid models and they aim to sell one million electrified cars by 2025.
We’re not a scrap yard, we’re a vehicle dismantlers
Atf Pro met up with the guys at Skan 4x4 Ltd to take a look at their great setup.
Code of practice flawed, the opinion of the BVSF
One has to be concerned when the insurer’s new Code of Practice (CoP) that received its “soft launch” a week or so back isn’t supported by either the Motor Vehicle Dismantlers’ Association or the British Vehicle Salvage Federation, two of the main owners of the pre-existing code.