rely on recordkeeping of vehicles sold at the auctions by VIN. “Reports on what is hot and what is not are important,” Meyer says. “We also have weekly meetings with our buyers and our new inventory staff together so they are on the same page with buying the right salvage.”
Future Trends Predicting the future is like forecasting the weather.
You think you know what’s going to happen – then it doesn’t. In the Midwest region, specifically the Chicago- land area, the cost of salvage vehicles has risen dramat- ically over the last five to 10 years – so much so that recyclers are being forced to pay more for salvage than they ever have before. “There are ‘deep pocketed’ competitors with multiple locations to fill with cars,” Hoffman says. “There are rebuilders that are eyeing that same piece of salvage to rebuild and resell rather than dismantle for parts. Out-of- country buyers drive up the cost of salvage vehicles due to their relaxed laws on vehicle safety, especially for rebuilt vehicles. These are all factors that are seemingly working against today’s recycler. This is why it is very important to know what salvage to buy that will be specific for your business.”
Full-service recyclers also agree that hybrids and elec- tric vehicles are no longer just a small niche market and
many recyclers are woefully unprepared to deal with high-voltage batteries and other hazardous components.
“While hybrid and electric vehicles still make up a small percentage of the nation’s fleet, they are experi- encing double digit growth rates year over year,” Shroyer says. With multiple manufacturers unveiling electric trucks and every automaker offering an electric or hybrid model, it is only a matter of time before recyclers encounter them in increasing numbers.
“Recyclers will need to develop and adopt specialized comprehensive training programs to address the unique handling and recycling requirements these vehicles bring with them,” Shroyer says. Eitvydas agrees. “Recyclers must navigate all of the new technology that is going into modern vehicles,” Eitvydas says. “This includes electric vehicles, self driving cars, hybrids, and new safety systems. To stay current, recyclers will have to understand how to process and make money with these new vehicles.”
Based in Minneapolis, Minnesota, Maura Keller is a seasoned writer, editor, and published author, with more than 20 years of experience. She frequently writes about recycling and business-related topics for
various regional and national publications.
Automotive Recycling
March-April 2019 // 37
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