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Added business opportunities at CARS this year

scrap harnesses
Will CARS/MRE give us opportunities to further benefit from the metals content of our hulks.
We were talking with EMG (the company that organises CARS) recently about improvements to this year’s show that will make it even better than previous events. They indicated a couple of items such as the Gala dinner event that’s planned this year, the opportunity to add in some track day fun (and that must be first for a show) and also, that they’ve dropped the entrance fee, so you can bring your key members of staff. All great stuff but we think the big plus for the dismantler will be MRE.

Let me explain, MRE or the Metals Recycling Event to give it its full title will run concurrently with CARS when it’s held in July. Here at atfPro, we believe that this has the potential to give the auto recycler a real push forward.

The most obvious plus here, is that CARS is to be going be side by side with a show that is full of potential customers for many of your materials. On hand will be scrap merchants who are wanting your materials. Many of these companies are specialists who could well be interested in materials that perhaps you haven’t considered separating before, or have just been sending off with the hulks. We believe that by putting these two shows together, this industry gets a great opportunity to explore new markets that can build profits in the future.

We all see much greater usage of aluminium and plastics these days which has reduced the steel content. OK, more aluminium and less steel is good news but plastics are not in the same league - or are they? Many of the plastics used are admittedly standard materials and due to their bulk, to handle them cost effectively means either granulating or baling. MRE may just be the show to find a cost effective way to handle those plastics, and perhaps a company that wants to buy them at a price that makes it worthwhile. But plastics aren’t just low value materials. There are many high value, technically advanced plastics used, such as high temperature engine components which have the potential to yield greater margins.

Don’t ignore the steel. The price of steel is not something to get excited about currently but as a wise man said once, “good times and bad times - neither last forever”. What should excite us is that many modern shells are not simply made of mild steel. To reduce weight and increase strength, many areas use some pretty fancy steels that cost a fair bit more than your average bit of steel. Is there an improved market for these materials if we separate them? MRE should give some answers to this.

Naturally, CARS will have all the bits of kit on show that you could possibly need to separate the different materials. So, if you do find some new potential opportunities, then you can also check out what equipment you need, and whether the idea adds up. Not many shows can offer you this which is why we are such big supporters of CARS.

It’s easy to ignore the added value in these potential material streams that you have in your yard, especially when the commodities markets are depressed. We have been looking to see if the sums still add up in the current market and were pleased to see that they do. Last month we looked at the added value still to be had from breaking your own engines (you can read it here) and hopefully, next month we are going to take a close look at the current financial implications of using a Powerhand machine to remove core material streams from hulks - will the sums add up, we’ll have to wait until next month.

If you haven’t attended CARS before, then we would highly recommend it to anyone involved with auto recycling, Everything you could possibly want to know about to make your business grow will be there plus a host of seminars and training workshops to enlighten your thinking. If you want to know more, then visit the CARS’ website here.

February 2016

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