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Added value - what’s it all about?

Overton Auto Dismantling System
Are you making the most of your ELVs. Equipment such as Overton’s Auto Dismantling System seen at CARS last year can add 25% extra onto your bottom line!
Working at your business day in day out, it’s very easy to become blinkered. That’s not to say you aren’t making a good living or doing the job right, just that you might miss opportunities that are staring you in the face.

What we are talking about here is the return you get from each vehicle coming into your yard, and I am not just talking about parts. Sure, increasing parts sales is a great way to add value and here at atfPro we are in favour of closer ties within the industry to develop green parts growth within the trade and insurance sectors.

It’s what’s left after those parts have been sold that interests us here. One of the speakers at last year’s CARS show called an ELV ‘the mine on wheels’. That’s a good name for what’s left as it is packed full of secondary raw materials. Some of those materials are still awaiting for processes and markets to make them profitable such as much of the plastics or the scrap tyres but there is plenty in there that is profitable, and that’s what you have the potential to exploit.

We are probably one of the last sectors to really recognise the benefits of added value. Take a look at the food industry if you want to see what I mean. Not so long ago, farmers would grow crops of raise livestock. The population would then go to the butchers or the greengrocer to buy them. These outlets were the first to add value to the products. By top and tailing the vegetables and the butcher chopping up the meat, they managed to increase the return from their feedstock.

Let’s face it, it didn’t stop there. Then came further value added through items such as pies, bread, cakes etc up until today when you can buy your finished meals. Just throw them in the microwave and that’s it. The point is, every time someone improved the product, added wealth was generated. You can see this chain of events within many market sectors.

So how does this help the dismantler? Let’s take wiring looms as an example. You can leave them in the hulk when it goes to the shredder - you won’t get any more for it. Or, you can remove them and when you have a parcel of them, sell them on to a specialist. You add a bit of value this way.

But you can add more! Why not granulate those cables yourself and maximise the value you can return from those harnesses. We covered BreakerPro’s system for parts management last month that links into 1st Choice Spares and responds to request automatically so freeing up staff. Why not put the freed up staff on a cable granulator and get those extra profits coming in?

Wiring looms are just one item. Did you see Overton’s Auto Dismantling System at CARS last year. This machine can add 25% extra return on the hulk. Or how about crushing you own engines and transmissions to separate the aluminium from the steel?

Our vehicles are becoming more and more specialised and as this happens, so are some of the materials. High value materials turn up in all the electronic components and of course, the CATs. Are you making the best of what you got? In 2013 we intend to look closely at systems to either help you increase profits or on the other side of the coin, reduce costs. After all, any significant reductions in materials prices will bring profits sharply into focus.

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.