in the future by “working ON your business, not IN your business.” Time is not only scarce, but also finite. We cannot make any more of it, so the time you do have available at work should be spent strategically rather than operationally. Well, to be clear I am not an expert on COVID. What I do know is that uncertainty breeds uncertainty which leads to economic vulnerability. Given this scenario it would seem logical that there will soon be a correction of sorts. But remember, while there is uncertainty in the broader community, automotive recyclers should be looking at the opportunities this presents to them. The auto recycling industry bucks the trend, it is counter-intuitive in this sense.
AR: What happens next? COVID is mutating and looks like it will have a long tail. This is apparent everywhere and it will be interesting to see what happens next, but one thing I am certain about are the opportunities for those who remain committed to their customers’ needs and to investing in their automotive recycling business.
Those that are smart about it, those that build for the
future, those that think differently, embrace change and the uncertainty it brings with it, will find that the next five years may well be the most profitable they have seen in a very long time.
A UK Pandemic StoryA UK PandemicStory Terry Charlton
erry Charlton // Managing Dir
anaging Director, Char ton , Charllton Recycled Au oparts, Lt Vehicle Recycling Center, Cambridge, England
AR: How did the beginning of the pandemic affect your business? Terry Charlton: Like most people around the world early in 2020, we had read in the press about COVID-19 – the ‘bat virus’ – and had no idea how it was about to impact us. I had traveled to the Col- orado Rockies on March 5, 2020 for my annual two-week ski vaca- tion, and met with friends on the first night in Denver for dinner and headed alone up the mountains. After a few days I drove to Las
Vegas to see Rod Stewart at Cae- sar’s Palace. Cocky Rod sauntered on stage and said, “Have you seen what Trump’s done? He’s stopped all international entry to the U.S. except us Brits. We are okay.” So, I wasn’t too concerned and traveled back to Colorado and carried on skiing. Then boom, Brits were included in the ban, the ski lifts were closed, restaurants shut down, and flights home to the UK overbooked.
I managed to switch my flight and arrived home on the March 16, 2020 when Prime Minister, Boris Johnson, announced, “Now is the time for everyone to stop non-es- sential contact and travel.”
I called a team meeting and explained that we would comply with any government requirements and ensure the safety of our employees. Several had vulnerable people within their households. On March 23rd, the stay-at-home order was announced. Our government announced pack-
52 // September-October 2021 Vehicle Recycling Center, Cambridge, England Autoparts, Ltd.
ages to help retain employees when they were not at work. We furloughed all employees with the exception of myself, a salesman and a storeman because we all live alone and therefore had reduced contact outside of work. During the following weeks, our sales dropped by 75%. The roads were empty and vehicles were not having acci- dents or mechanical failures; however, what business we did was enjoyable, customers were relaxed, attitudes amongst people improved – there seemed more politeness.
AR: How did the pandemic impact your business?
Part sales quickly picked up to about 40%; and surprisingly scrap prices increased whilst numbers were low. I personally was collecting sev- eral ELVs each week. It’s important to note that the scrap metal industry was classified in the UK as essential workers. On the vehicle supply front, auctions closed initially. But, when they reopened, they introduced new apps for collecting cars. This was so much better, as previously we had regular instances where a driver
could wait 2+ hours at an auction to be loaded. Now, it takes about 15 minutes most of the time. However, there has been a shortage of good inventory throughout the pandemic and it has only been in recent weeks that the numbers of vehicles on the roads have returned to pre-pandemic levels.
Our used parts sales came back strong last summer and we had several good months until further lockdowns in September and November. We have only seen these lifted over this summer, summarizing last year’s parts sales. Overall, we managed to increase over 2019 and it looks like we will be about the same this year, partly due to poor availability of new parts, inflation and delivery issues. For example, I needed a new water pump for a three-year-old
Automotive Recycling
BOOST OR BUST?
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