March / April - Automotive Recyclers Association ARA
Transcription
March / April - Automotive Recyclers Association ARA
Automotive Recycling March-April 2014 ™ Official Publication of the Automotive Recycles Association Partnerships in Automotive Repair ® Working Together to Maximize Successful Business Models and Meet Consumer Needs ® Automotive Recycling ™ www.facebook.com/AutomotiveRecycling www.AutomotiveRecycling-Ezine.com March-April 2014 | Volume 34 Number 2 ® Co l u m n s President’s Comments | 4 • Ed MacDonald Editor’s Notes | 6 • Caryn Smith International Auto Recycling | 68 • Andy Latham Final Thoughts | 74 • Michael Wilson SPECIAL REPORT ON RECYCLERS & REPAIRERS q Partnerships in Automotive Repair / 28 Working together to maximize successful business models and meet consumer needs q Getting the Part: Connecting Automotive Recyclers and Repairers / 30 q Your Online Reputation and Your Bottom Line / 44 They are more connected than you think. By Dusty Dunkle An Interview with Dan Risley q A Repairer’s View on Auto Parts Recycling Relationships / 32 De p a r t m e nt s Plugged In | 7 ARA Action | 8 Insure This | 14 • Bill Velin Safety Matters | 16 That’s My Opinion | 18 • Ron Sturgeon Tech Knowledge | 20 Marketing 101 | 22 • Mike French Tomorrow’s Workforce | 24 By Darrell Amberson q Connecting Partners in the Repair Process / 33 By Rick Poor q Auto Recyclers in the NASTF Conversation / 34 By Skip Potter q Improve Your Business by Maximizing Sales to the Collision Repair Industry / 36 By Bob Jabjiniak q Maximizing the Direct Repair Relationship / 38 q Lessons Learned | 25 A Self-Service Automotive Recycler’s Perspective: Flexibility, Adaptability and Trust are the Keys / 40 • Ginny Whelan ISO 9001 | 26 • Mary McDonald | | | | | 65 69 72 73 73 Automotive Recyclers Association 9113 Church Street, Manassas, VA 20110-5456 USA (571) 208-0428 / (888) 385-1005 / www.a-r-a.org SPOTLIGHT q Central Auto Parts / 48 Five things have kept this family-owned business thriving. By Lynn Novelli By Amber Elenbaas • Pat O’Connor Certified News Capitol Connection Crossword Puzzle Industry Calendar Advertiser’s Index ONLINE REPUTATION By Jordan Madorsk, Jay Brosten, and Larry Brosten q Changing is Expected / 41 SCHOLARSHIP q 2013-2014 ARA Scholarship Foundation Recipients / 62 By Jeff Schroder q Progressive Automotive Recyclers Lead Consumers, Repairers, and Insurers to “Re-think Re-cycled” / 42 By Stacy Bartnik EXPOSITION q 2013 Convention Sponsor Recognition / 68 AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA, (571) 2080428 / (888) 385-1005, Fax: (571) 208-0430, Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Additional member subscription are $15/year. Non-member subscriptions are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and nonprofits. Copyright © 2014 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are the responsibility of the authors alone and do not necessarily imply any opinion on the part of the officers, directors, staff, or the members of the Automotive Recyclers Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA. March-April 2014 | Automotive Recycling 3 President’s Comments By Ed MacDonald, ARA President ARA Officers PR E S I D E N T Ed MacDonald Maritime Auto Salvage, Ltd. Truro, NS Canada edmacd@maritimeauto.com FIRST VICE PRESIDENT Leading within Change T he frequently heard quote “change is the only constant,” first uttered by Greek philosophers, is increasingly dominating today’s marketplace. Professional automotive recyclers know firsthand that it is those who learn to harness the power of change who will lead businesses to new heights of success. In fact, this constant state of change provides the blueprint for action that guides both successful automotive recycling businesses and our ever-increasing interconnected industry partners. Industries that provide insurance, explore new vehicle technologies, define how products are presented in the marketplace, and establish market parameters, are experiencing unprecedented rates of growth and change, which in turn prompts professional automotive recyclers to be an integral part of each and every one of these “change” industries. As I peruse the many different trade magazines that bombard our office inboxes daily, it is obvious that today’s business owner is being challenged daily to respond to never-ending emerging changes. Just consider the titles of a few of the many leading articles demanding our attention... “Are you credible?,” “Are you a change leader?,” “How safe are our jobs?,” and “Will collision avoidance systems ruin our industry?” One article that particularly intrigued me was a discussion on the effects that collision avoidance systems may have on insurance companies. The article queried that if such systems resulted in no accidents, would auto insurance be necessary and, in turn, would the collision repair and parts supplier industries be rendered moot? Readers in the affected industries could, at first, react in panic. But the true entrepreneurs and business experts would see more opportunity than threat in these words and conjure up ideas that grow into new paths of discovery and innovation. And I know that the professional automotive recycler is just that creative sort, who will find something of value in every new idea and work with industry partners to create opportunities. Many more future article headlines will capture our collective spirit of entrepreneurship. I challenge you to act on these ideas and help position professional automotive recyclers with industry partners to chart new destinations. Leadership, productive business relationships, strong values and a forward thinking management team are the qualities that will propel the automotive recycling business into the future. Now, more than ever, it is the product quality, professional service, and dedication to your client that will be the defining factors of success in your business. ARA is here to help make you be a leader in today and tomorrow’s marketplace. To this end, it is my honor to be leading your staff in efforts to bring to you a standard certification program that is widely recognized throughout the automotive parts supply industries; to identify sources of inventory and provide programs through which you can access this inventory; and as addressed in this issue’s special report, to develop the template for partnerships with industry partners to grow markets for OE recycled automotive parts. Indeed it is through tools, such as the ARA University, ARA’s business and communication initiatives, as well as its strong advocacy and public policy efforts, that your interests are being protected and promoted daily in the boardrooms of business and at the roundtables of policy. Autonomous vehicles, complexity of components, types of construction and methods of delivery are just a few of the challenges that only we as a collective group can make into opportunities to grow our industry. In conclusion, never stop reading, learning, discussing, and, above all, challenging the future! And count on your ARA to provide the resources and tools to help you transform challenge into opportunity. I look forward to continuing this discussion with many of you during my 2014 Spring Tour to your state association meetings. Sincerely, Ed MacDonald ARA President 2013-2014 4 Automotive Recycling | March-April 2014 Ricky Young Young’s Auto Center & Salvage/Car Crushers Benson, NC ricky@youngsautocenter.com S E C O N D V I C E P R E S I D E N T/ T R E A S u R E R Mike Swift Trails End Auto and Truck Salvage Des Moines, IA mike@trailsendauto.com S E C R E TA R Y RD Hopper Sonny's Auto Salvage Jacksonville, AR rd@sasparts.com I M M E D I AT E PA S T P R E S I D E N T Chris Wright Capital Auto Parts Thomasville, GA chris@capitalautoparts.com ARA Executive Staff & Contractors ARA Headquarters • (571) 208-0428 CHIEF EXECuTIVE OFFICER & PuBLISHER Michael E. Wilson michael@a-r-a.org Ext. 14 DIRECTOR OF MEMBER SERVICES Kelly Badillo kelly@a-r-a.org Ext. 26 DIRECTOR OF POLICY AND EXTERNAL A F FA I R S & E- C A R C E N T E R Betsy Beckwith Betsy@a-r-a.org Ext. 17 D I R E C T O R O F S TAT E & G R A S S R O O T S A F FA I R S Jessica T. Andrews Jessica@a-r-a.org Ext. 23 D I R E C T O R O F P O L I C Y & P O L I T I C A L A F FA I R S Delanne Bernier Delanne@a-r-a.org Ext. 18 MEETING & EXPOSITION PL ANNER Kimberly Glasscock (615) 476-4501 kglasscock@awardwinningevents.com A D M I N I S T R AT I V E A S S I S TA N T Maria Miller maria@a-r-a.org Ext. 10 A C C O u N TA N T John Caponiti john@a-r-a.org Ext. 16 G O L D S E A L P R O G R A M , C O N S u LTA N T Ginny Whelan (239) 362-1283 ginny@araeducation.org AuTOMOTIVE RECYCLING MAGAZINE & WWW.AuTOMOTIVERECYCLING-EZINE.COM Caryn Suko Smith (239) 225-6137 ARAEditor@comcast.net For advertising, editorial, or production information, e-mail ARAEditor@comcast.net or call (239) 225-6137. www.a-r-a.org Editor’s Notes By Caryn Smith ARAEditor@comcast.net Colliding into Longterm Success I t’s been a long, hard winter for many, with stories of dangerous conditions dominating the headlines. With bad weather comes a rise in auto collisions. Just the other day there was a report of a 100-vehicle pile up on the Pennsylvania Turnpike. Thankfully no one was killed in the black ice road conditions, (although 30 were injured) that left 8 miles of traffic stranded for hours. In the world of cars, what causes a terrible inconvenience to those car owners creates an opportunity for the auto recycler and collision repairer. From that one mega accident will come 100 insurance reports citing recommendations for vehicle repair or total salvage loss, with vehicles carted off to auction. 6 Automotive Recycling | March-April 2014 Of those that land on the repair side of the list, auto recyclers in the Philadelphia area should be getting calls, e-mails, faxes and messages for green recycled auto parts from their local repair shop partners – that is, if they have developed that kind of relationship. This issue is dedicated to harnessing the power of synergetic relationships with the collision repair industry. Professional automotive recyclers, especially ARA members, and those in the elite CAR and Gold Seal Programs, should be top of mind to its sister industry when creating purchase orders for car repairs. When auto recyclers have this relationship with their key collision repairers, business is a win-win for both, ultimately with the con- sumer also winning through cost-effective solutions to car repair and environmental stewardship by recycling. In this issue, you’ll hear from the cutting edge leaders on how to leverage better relationships and build a business that benefits both industries. With the rise of collision avoidance systems awareness and implementation, it is critical that we join forces to ensure that any consumer who is in need of repairs is able to get what they need, still at an affordable price. Also in this issue, you’ll learn the ins and outs of managing your online reputation, and being proactive to protect it. Share your thoughts on this issue by emailing ARAEditor@comcast.net. ■ Plugged In ASSOCIATE MEMBER By Caryn Smith UniFirst is Your Uniform Provider O ne perk of ARA membership is the significant discounts you receive on many things that are used daily in your business, such as uniforms. The ARA Marketplace offers a key service through UniFirst – a leading supplier of uniforms, workwear, and related products to businesses of all types and sizes. UniFirst offers ARA member a 20% discount, and more. If you’re considering a change to your company uniform, they will even provide a free uniform consultation. Since 1936, UniFirst has been a trusted supplier of traditional uniforms, industrial wear, specialty and protective clothing, corporate casual, and executive attire. They also offer floorcare and restroom services items such as mats, mops, soaps, air fresheners, and paper products. Serving customers from more than 200 local facilities throughout the United States and Canada, UniFirst outfits more than 1.5 million workers at 240,000 customer locations with work apparel each and every business day through valuebased rental, lease, and purchase programs. What makes this company unique is, although they operate nationwide and beyond, they still enlist the family values and culture that founder Aldo Croatti started back in 1936. UniFirst was founded upon three Core Business Values for all employees to follow: (1) a customer focus, (2) a respect for others, and (3) a commitment to quality. With this strong focus, they were named to Forbes Magazine’s Platinum 400 List as one of “America’s Best Companies.” So what’s the real secret to UniFirst’s success? “It’s our people, or as we call them our team partners, and their highly focused customer service disciplines that call for developing ‘Customers for Life,’” says UniFirst President and CEO Ron Croatti. “Others can try to copy our uniform products and services, but they cannot replicate the customer-oriented family culture we nurture corporately and at each of our 225 service sites nationwide. As a result, competitors struggle to achieve the customer service and satisfaction levels we maintain, and this is often evidenced in the bottom line.” UniFirst’s corporate mission is to be recognized as the quality leader in their industry. They have a careful focus on serving each Customer’s special needs and providing total satisfaction that enables them to grow, to provide an equitable return on investment, and to create opportunities for all of employee-team partners. New to UniFirst Beyond being made for unimpeded performance, all UniFirst apparel is designed to project a more professional business image thanks to such premium design features as double-needle stitching, banded collars with permanent stays, and wider belt loops. This includes their latest offering of Wrangler Workwear™ in their uniform rental program. Something for auto recycling businesses to consider, “Wrangler Workwear™ is built totally with a worker’s comfort and mobility in mind so they can perform their best each and every day,” says Chris Holcombe, VP, GM Wrangler Workwear™. Thinking about a Uniform Change? What does the color say about your company? Research has repeatedly shown the colors you select to brand your business can be among the most effective ways to attract and keep customers. Color preferences seem to be deeply rooted emotional responses that lack any rational basis, says Dr. R. Douglas Fields, a senior investigator at the National Institutes of Health. In an article written to Psychology Today, Dr. Fields says, “Color rules our choices in everything.” He also notes people like to think of themselves as rational, but in fact they are often unknowingly ruled by the “mysterious” power of color. “Utilizing the psychology of colors can most definitely help reinforce a soughtafter business image or message, such as technical proficiency or reliability. And customers often subliminally take such ‘uniform’ messaging more seriously because it’s being worn by a real person, someone who embodies the brand and makes the brand more tangible to them,” says Adam Soreff, Director of Marketing at UniFirst Corp. Here are some widely recognized attributes of colors: • White: pure, clean (worn by doctors and nurses to imply sterility) • Black: power, authority (helps project knowledgeable expertise) • Green: calming, growth and fertility (favored by landscapers/garden centers) • Purple: royal, dignified (helps suggest “premium” products and services) • Orange: warm, vibrant (used to create a playful business environment) • Silver: prestige, scientific (often the choice of high-tech companies) • Red: excitement, confidence (tends to be used to distinguish employees in expansive business setting) • Blue: Trust, belonging (the most popular color used in all businesses) • Yellow: Warmth, happiness (used to promote a general sense of well-being) • Gold: Elite, prestige (fosters a sense of the very best) Contact UniFirst with your uniform needs through the ARA Marketplace, ara.bizunite.com. ■ Caryn Smith is the editor of Automotive Recycling magazine. March-April 2014 | Automotive Recycling 7 ARA Action Latest News and Reports from ARA Colorado Auto Recyclers Convene for Annual Meeting ARA Submits Comments to EPA on Electronic Reporting Under Stormwater Program M A embers of the Colorado Automotive Recyclers Association assembled in downtown Denver on January 18 for the association’s Annual Meeting. ARA CEO, Michael Wilson, along with Governmental Affairs Committee Chairman and ARA Past President, Norman Wright, were among those in attendance. Members heard from industry favorite Jim Counts, Counts Consulting, about ways to use brokering and warranty sales to increase profits. Tim Salam, Brock Supply, spoke about aftermarket parts, Roger Ross, QRP and a representative of the Clear the Air Foundation, also presented. Wilson provided an update on ARA activities and priorities for 2014, and shared details of the association’s popular online marketplace. Important information related to the Affordable Care Act, a legislative update, and election of 2014 CAR officers also took place. RA submitted comments to the Environmental Protection Agency (EPA) supporting the Agency’s suggestion that there be a separate discussion/rulemaking on the governance of facility-specific stormwater data that will soon be required to be reported electronically to the permitting authority. In its comments, ARA acknowledged that current law provides for public access to this data – most of which is already being submitted in paper form. ARA asserted, however, that moving from written to electronic reporting will make this data that much more accessible and vulnerable to misinterpretation and misuse unless it is appropriately governed. ARA formally stated its concern that unless the access to and use of the increased data available from electronic reporting is carefully governed, the success of the stormwater program will be in jeopardy and industries such as professionally automotive recycling could be subject to devastating legal costs. In its comments, ARA suggested that there be a process implemented through which a formal request for data by non-regulators be subject to a board review to ensure that the user’s intent was reasonable and with basis. ARA requested that this process be defined by relevant stakeholders including representatives of the professional automotive recycling industry. Excerpts Reprinted from Autobody News Virginia-Based Automotive Recycling Association Does More Than Green the Industry By Chasidy Rae Sisk Federal StormWater Association Submits Comments on 2013 Multi-Sector General Permit O n behalf of ARA and other like industries, the Federal StormWater Association (FSWA) submitted comments on EPA’s proposed 2013 Multi-Sector General Permit (MSGP). ARA is a member of the Association. The comments noted that even though the MSGP is limited in geographic scope as it only covers those states/territories where EPA is the permitting authority (ID, MA, NH and NM), it is considered a model for most states when determining their own directions for stormwater permit programs. It strongly argued that there is no longer any need or justification for benchmark monitoring. The Association opposed EPA’s proposal to require that a permittee’s current stormwater pollution prevention plan must be posted on a publically accessible website. 8 Automotive Recycling | March-April 2014 E nvironmental concerns have become a major priority in the collision repair industry along with removal and reutilization of recyclable material. The Automotive Recyclers Association (ARA) is playing an increasing role in this effort. Since it was established in 1943, ARA has been the only trade association representing the automotive recycling industry. It is dedicated to efficiently removing and reutilizing automotive parts as well as seeing to the safe disposal of inoperable motor vehicles. ARA CEO Michael Wilson explains their mission: ARA aims to further services and programs to increase public awareness of conserving the future through automotive recycling and to promote the industry’s value to the automotive consumer. ARA encourages aggressive environmental management programs to assist member facilities in maintaining proper management techniques for fluid and solid waste materials generated from the disposal of motor vehicles. ARA offers many benefits to their members, such as networking opportunities, legislative representation, marketing tools, and even discounts on liability insurance, and training through ARA University. Their website features resources for members, and ARA publishes a weekly electronic newsletter and a bi-monthly magazine, Automotive Recycling, to provide members with needed information on the latest industry trends, training, and technological updates. According to Wilson, ARA serves members by offering a broad spectrum of programs and benefits for all sizes of automotive recycling operations: “Business models for professional automotive recyclers include both full- and self-service platforms, and their clients range from doit-your-selfers to independent repair shops to large insurance based collision repair facilities.” ARA also maintains two foundations for the benefit of their members and the industry at-large. Their Educational Foundation hosts a library of industry-spe- ARA Action Latest News and Reports from ARA cific training courses which are available through the ARA University. ARA’s Scholarship Foundation promotes continuing education by awarding scholarship grants – $48,000 in 2013 – to the children of their members’ employees. Discussing the challenges ARA faces to maintain operations, Wilson lists branding, consolidation within the industry, the exportation of salvage vehicles out of the country, the unlevel playing field at salvage auctions and with unlicensed or illegally operating entities, and advancements in technology. He says the industry needs to overcome the competition and barriers erected by auto manufacturers seeking to protect their market share. Wilson explains their current focus: “The professional automotive recycling industry is not immune to the effects of the type of seismic events that have transformed the American automotive sector over the past few years. Our members must be equipped to adapt to the effects of this change in order to meet emerging markets in new and creative ways. We are also focused on providing our members with the skills and knowledge to meet the challenges that new, more complex motor vehicles bring to our facilities. “A recent Polk report detailed that the number of vehicles older than 12 years has increased by more than 20 percent, and that percentage is expected to continue to rise for at least the next five years,” Wilson says. “These numbers predict a significant wave of inoperable motor vehicles that will be arriving soon at automotive recycling facilities throughout the United States. As an industry, we must seize the opportunities these increasing inventories create for the proper and efficient removal and reuse of ’green’ automotive parts.” ARA leadership held a strategic planning retreat in 2013, the purpose of which was, “to articulate a future that realizes the full potential of members’ businesses. ARA is working continually to engage 10 Automotive Recycling | March-April 2014 industry partners that want to help advance the automotive recycling profession and, at the same time, try to bridge gaps between us and those entities that have minimal interest in supporting policies that promote the utilization of OE recycled parts.” ARA has partnered with CIECA in order “to leverage expertise and implementation tools of both parties, develop standards and advance new business platforms. CIECA develops technology electronic communication standards that allow better connectivity within the industry. This partnership is increasing parts sales and reducing risk.” Other pending projects include ARA9001, a quality control system specifically tailored to the automotive recycling industry that is based on elements of the association’s current Gold Seal program and continued recognition and utilization of the Green Recycled Parts trademark. The association also recently released ARA Direct, an online auction platform where members can purchase vehicles from various insurance companies, wholesalers, fleets, franchise dealers and others in a manner that significantly changes the means by which members’ vehicle acquisition demands are met and increases their inventory. Though these matters are more than enough to keep ARA occupied, they work in the regulatory and legislative sphere as well. In addition to working with the EPA to make storm water permitting appropriate and effective for professional automotive facilities plus regularly educating members on OSHA standards, ARA has been working with the Department of Justice to increase compliance and enforcement of the National Motor Vehicle Title Information System. Their work with Department of Transportation to combat the use of counterfeit airbags has led to ARA’s involvement in legislation on this topic to educate consumers about recycled OEM airbags. Wilson believes this legislation “benefits body shop owners because they will be able to better identify counterfeit airbags and also understand the cost-effective option of using non-deployed recycled OEM airbags in repairs.” Additionally, ARA has taken an interest in metal anti-theft legislation to prevent duplicative mandates on auto recyclers. ARA also supports evaluations on the need for and cost of new regulations while keeping an eye on how these changes impact jobs which benefits collision repair shops. The current motor vehicle safety recall legislation under consideration in the Senate applies to rental fleets, “but ARA is taking the opportunity to educate policymakers on the need to include recall data into third party inventory management systems so recyclers can identify through their electronic inventory searches whether a particular part has been recalled; this benefits body shop owners because this would guarantee that the recycler wouldn’t unknowingly sell a recalled part to a repairer,” says Wilson. Wilson also believes that OEMs need to embrace parts reutilization at the design stage. “Technological advances are eliminating past barriers to foster robust international commerce. Access to parts data that only automotive manufacturers can provide is crucial to enable the auto body industry as well as automotive recyclers to compete in emerging technologies and business platforms; this is a need both our industries share. Only with this important data can the automotive recycling profession efficiently and accurately identify OE recycled part matches for repairs and total loss determination calculations.” ARA is monitoring initiatives related to Right to Repair, “ARA has long argued that car owners and independent repair shops need full access to the information, parts and tools necessary to accurately diagnose, repair and re-program vehicles.” ■ ARA Action Latest News and Reports from ARA ARA STRATEGIC PLAN IN FOCUS: Be Recognized as the Depository and Processor of End-of-Life Vehicles It has been one year since the ARA Board of Directors adopted a new Strategic Plan to guide the current and future work of the association. Many weeks of discussion focused on identifying future opportunities and challenges, how best to promote members’ businesses, and continue to successfully serve association membership in the future. From it arose a new Strategic Plan, formally adopted by the Board on March 13, 2013. The foundation of the Strategic Plan is the Association’s mission: To advance the automotive recycling industry and promote its beneficial effects on society, and its vision to be the voice of the automotive recycling industry. The Plan articulates a future that acknowledges the full potential of members’ businesses. It is comprised of five initiatives that are the means through which ARA plans to translate this vision into practice. Automotive Recycling will examine each of the five strategic initiatives in more detail, which includes an update on how ARA is committing its resources and measuring its success. Recognition H ow many times have you been asked, “So what exactly is an automotive recycler?” Throughout the course of discussions about the challenges and opportunities facing the industry, ARA leaders coalesced around the critical need for professional automotive recyclers to be recognized as the depository and processor of end-of-life vehicles (ELVs). For ARA member businesses to succeed and the profession to advance, automotive recyclers must be recognized as the place to go for the proper handling, processing and recycling of vehicles that are no longer roadworthy. The vital role played by auto recyclers must be recognized not only within the automotive parts supply chain, but in the broader automotive sector, among the OEMs, in local, state and governmental agencies, with consumers, and around the globe. Achieving this measure of recognition will help to enable and equip ARA to put its mission to advance the industry, promote its beneficial effects on society, and fulfill its vision to be the voice of the automotive recycling industry, into practice. Into Action With the strategic initiative to be recognized as the depository and processor of ELVs identified, the discussion 12 Automotive Recycling | March-April 2014 focused on developing strategies for achieving this recognition within the three-year timeframe of the Strategic Plan. Four implementation strategies are outlined in the Plan: • Capture Comprehensive Industry Data and Distribute to Relevant Stakeholders; • Maximize the Utilization of Recycled, OEM Parts; • Develop a Comprehensive Internal Communications Plan; and • Develop a Comprehensive External Communications Plan. Capturing Industry Data Having a clearer picture of the players operating in the automotive recycling and automotive parts marketplace will better inform ARA leaders and staff as they represent the interests of the profession to the outside world. To that end, one of the goals ARA pursued in 2013 in efforts to capture industry data was to request of the Department of Justice’s NMVTIS Advisory Board information on the various entities who were reporting salvage vehicles into the NMVTIS system and exactly what they were reporting. You may have also noticed an additional question on your membership renewal application this year regarding your business model: full-service, selfservice, or both. This information, along with other data such as number of employees, gives ARA insight into the industry and is valuable quantitative data that ARA can leverage with interacting with potential strategic partners. Simply put, it strengthens ARA’s position as the voice of the industry. Utilization of Recycled Parts Association efforts to maximize utilization of recycled OEM parts are underway in many forms. An outreach plan was developed to connect with insurers, repairers, and consumers and educate them about the benefits of recycled OEM ARA leaders coalesced around the critical need for professional automotive recyclers to be recognized as the depository and processor of end-of-life vehicles (ELVs). parts. In addition to staff outreach on the association-to-association level, several of your fellow recyclers have taken steps to inform key stakeholders about the industry. Technical Advisory Committee Chair, Andrew MacDonald, Maritime Auto Parts, Glenholme, Nova Scotia, attended the 2013 SAE Hybrid and Electric Vehicle Technologies Symposium. The Committee also sent Slater Shroyer, Shroyer Auto Parts, Lansing, Michigan, to a forum sponsored by the U.S. Advanced Battery Consortium (USABC) and the Vehicle Recycling Partnership (VRP) to participate in discussions on guidelines for the design of large platform batteries to increase their recyclability. The integration of CEICA terminology into a newly updated version of the ARA recycled parts guide software provides a direct link to the collision repair industry. Ginny Whelan, Executive Director of the ARA Educational Foundation, presented at the CEICA Conference in September. The software will soon be available for use. Let's Talk! You may have noticed an increased ARA presence on social media in the past few months -- all part of the new internal and external communications plans. Watch for industry news, information, and other resources from ARA to be delivered via social media this year, in addition to your e-mail inbox. “Like” us on Facebook and follow us on Twitter to truly engage with your automotive recycling colleagues and your association. Take ARA press releases, position statements, industry publications, codes and standards, and use them as tools to further the association’s messages to external audiences that you are connected with. Educate others about the automotive recycling industry. Be an active player! ■ You can be a part of the bigger picture. To receive a copy of the Strategic Plan goals for ARA, please contact ARA staff at (571) 208-0428 or Maria@a-r-a.org. March-April 2014 | Automotive Recycling 13 Insure This By Bill Velin bill.velin@wellsfargo.com Small Companies and Data Breaches D ue to the recent retail data breaches, this is a good time to reiterate that auto recyclers both on the wholesale and retail level are not immune from this exposure. Data breaches are happening every day, and small businesses have always been an interesting target for hackers due to the volume of information in their systems, including credit card data, employee data, and other information. You may think this is an insignificant risk compared to other exposures, but you might be surprised to learn that data privacy breaches occur at a much higher frequency than you might think, and cause significant financial harm beyond what you would expect. The reputational harm alone can be catastrophic. The primary exposures we see in data breaches are: • Unauthorized access to or use of computer systems • Black boxes and skimming devices • Unsecured wireless networks • Theft of proprietary information • Data or network sabotage • Corruption of digital assets • Theft or loss of portable media devices such as iPhones, back-up drives, thumb drives, etc. • Identity theft Ins and Outs of Data Breaches Retail operations collect an abundance of sensitive information and, in many cases, it is kept for years. A breach of any of this information exposes your firm to litigation, regulatory scrutiny, and public humiliation. The lawsuits from these data breaches come from many sources including victims, issuing banks, the Payment Card Industry (PCI), and local and federal regulators. If a retailer is alleged to be in violation of a privacy breach law, it can be subjected to several notification requirements, a complicated, expensive process that creates civil liability if timely, proper notification is not made. 14 Automotive Recycling | March-April 2014 Most of the states have notification laws which were written to protect their residents. In addition to the states, the Federal Trade Commission and other federal entities have the ability to bring investigative actions against you and impose fines and penalties as well. Owners, directors and officers are also at risk. Some have been sued for failure to provide adequate network security to prevent breaches or for failing to provide their company with sufficient resources or insurance to manage this risk. Five Myths to Forget There are five myths out there that you cannot afford to believe: 1. Data Security and privacy is not a problem for small retailers. Not true! Bad things happen to retailers of all sizes. Rogue employees, data thieves, and unscrupulous business associates are always looking for opportunities to take advantage of even the slightest weakness. 2. We can afford to self-insure this risk. As a questionable economy continues, we tend to spend less on optional expenses. Many small companies believe that if something happens to their data, they can afford to cover the costs. Far from true! A recent study by the Ponemon Institute puts the average cost of a small breach of 1,000 records at $200,000. And, of course, most of those funds need to be liquid. 3. Coverage is expensive and hard to get. Again, not true! Competition and a large pool of buyers have made network security and privacy liability more costeffective and easier to obtain. 4. Our general liability policy will cover us. No! GL policies cover bodily injury and property damage. Courts have consistently held that data is NOT property and it is considered intangible. 5. We have vendors that handle our credit card transactions and if they have a breach, it is their problem not ours. Again, this is generally not true! The data owner who collects the information has usually been found to be ultimately responsible for what happens to that data. There are many reasons why retailers are targets for breaches that are, more often than not, successful because proactive preventative measures are lacking. Small retail firms must have strict policies and procedures in place as well as a comprehensive plan for incident response. • Have you adequately educated your employees about their responsibility to protect private information? • Have you implemented procedures for the access to and use of private data, and is access to it limited to a “need to know” basis? • Do you restrict and/or encrypt data that is stored on mobile devices, including back-up tapes? • Do you have procedures managing your contracts with business associates including indemnification, insurance, and significant limitations of liability? • Do you follow encryption standards? • Do you have a written policy regarding the dissemination of personal information on public and social media sites? • How often do you monitor networks, websites, and data bases to detect potential issues? • What will you do if a potential issue is identified? • Do you have adequate reserves or insurance protection to manage the financial impact of a breach? It is advisable to have a ready-to-use incident response plan, and on-call forensics expert, and a privacy attorney on retainer. Then when a potential issue is identified, your firm is ready to mitigate the effects of the breach and deter any potential litigation. ■ For more information on how Wells Fargo Insurance Services can benefit your business, contact Bill Velin at 800-328-6311, ext. 3039, direct 952-830-3039, or by e-mail bill.velin @wellsfargo.com. Safety Matters From the ARA Safety Committee Safety Information Direct to Safety Managers A RA’s Safety Committee continues to explore different communication methods to reach the individuals at automotive recyclers’ facilities who would benefit from the safety resources that the committee has developed. In addition to sending safety news and materials to the larger ARA member universe via e-mail blast, the committee has created a safety brief newsletter targeted for safety supervisors and sent directly to their e-mail addresses. If you have not gotten your e-newsletter, or would like to add your safety manager to the e-blast, please contact Betsy at betsy@a-r-a.org. Following is a copy of the newsletter’s first edition. WorkPlace Safety – ARA News for Safety Supervisors OSHA NEWS ... Click, Print, and Post: Don’t forget to post your OSHA Form 300A. It was due by February 1. OSHA requires that employers who have more than 10 employees must post their facility’s injury and illness log (Form 300A) of the year prior by February 1st. Go to www.bls.gov/respondents/iif/ forms/oshaforms.pdf, print and post your copy of Form 300A. Also see www. osha.gov/recordkeeping/new-osha300 form1-1-04.pdf for instructions on how to fill out Form 300A. Go to www.arauniversity.org to learn more about the many ARAU safety courses offered. Also visit to www.arauni versity.org/courses/globally-harmonizedsystem (as seen above) to see an example of an ARAU safety course on the new global harmonized hazard communication system. Online sales of industrial markers for auto salvage and auction • Permanent paint markers from $1.30 each • Steel tip pressurized markers for wet and oily metals • Removable markers for auto repair and dealerships Free Shipping for orders over $25 We accept Visa, MasterCard, and American Express Order online or toll free at 888-396-3848 16 Automotive Recycling | March-April 2014 Do You Have Your ARA Safety Posters up? Call the ARA office to order yours today! Contact ARA today to order your safety posters in English and Spanish at (888) 385-1005 or e-mail maria@a-r-a.org. ARA Provides Members with Safety Posters ARA Safety’s Committee provides members with safety tips on how to avoid problems with OSHA on issues related to gas cans, fire extinguishers, electrical panels/wiring, hazard communications, forklifts, automotive lifts, airbags and lock-out/tagout mechanisms. The posters are available to order in English or Spanish from the ARA office. Questions or comments? Send an email to betsy@a-r-a.org ARA’s Safety Committee is chaired by ARA Past President Doug Reinert, and is supported by ARA staff liaison Betsy Beckwith. If you would like to serve on or have suggestions for this active committee that assists the efforts of ARA members to maintain a safe working environment, please contact Doug at dougchucks@aim. com or Betsy at betsy@a-r-a.org. ■ March-April | Automotive Recycling 17 That’s My Opinion By Ron Sturgeon rons@rdsinvestments.com What Your Web Designer Doesn’t Know Costs You M ost web designers have a basic idea about business, but they don’t know much about your business. They don’t know what’s important to your customers. If your site is going to be successful, you need to make sure that the people building it understand your business and know exactly why people come to your site. Why Are You Here? Check out a few auto recyclers’ websites. Why do you think visitors came to these sites? To buy a part, right? How prominent is the search-for-parts box on the home page? Is it even on the homepage? Too often I have had to click around looking for the tool that 98% of people visiting the site have come to use. If you don’t make it simple for potential customers to do what they came to do, they will click to the next site. Money that should have been yours is gone forever because your designer didn’t think hard enough about why people come to your site and what they need to do there. Connecting Site Design and Business Goals Going beyond the basics, the smartest web designers will think about how the business works and what could be on the site to make transactions happen. All recyclers sell used parts on their websites. Right now, however, the smartest auto recyclers are using their websites to buy cars. Just by putting the offer to buy on the site, they get the occasional juicy bit of inventory at a bargain price. Your web designer likely won’t even think about strategies like that one unless he or she takes the time to understand your business. Getting the Most from Your Business Website I don’t design or sell web design services, but I frequently host calls with entrepreneurs and their web designers and 18 Automotive Recycling | March-April 2014 developers to set clear expectations for web design projects, reconcile the unique selling proposition with the website, and verify Search Engine Optimization (SEO) capabilities of the designer. Because I have been through the web design process for many of my ventures, I can help you get the best work from your web design team and increase your chances of getting a site that uses SEO best practices and contributes substantially to your bottom line. If your website could produce more sales, e-mail me your URL and I will give you a free report showing your site’s SEO score and give you some specific ways to make your site work harder for your business. So, Does Your Web Designer Know SEO? SEO is an ongoing effort to secure rankings for the words that searchers use to find businesses like yours in Google, Bing, and Yahoo. As you contemplate building a website or revamping an existing one, you need to work with a web designer that knows how search engines work, so that he or she designs yours properly. Most web designers understand a little SEO, but their task of keeping up with general design doesn’t leave them time to learn SEO at a meaningful level. If you are planning on getting traffic from search engines without pay-per-click, you will need good optimization to show up on page one of the search results for your keywords. The more competitive your niche, the more likely you will need to optimize to get good placement. If your designer knows SEO, they will: 1. Have asked you for the terms/words you think your customers use when they search for businesses like yours. 2. Have then furnished you a list of those keywords and associated terms, an estimate of the number of times those terms were searched last month, and where your site ranks for each of those keywords. 3. Have shared tactics needed to improve performance for those terms and asked you to budget for ongoing SEO work or set aside time to do that work yourself 4. Have given you monthly reports showing you where you are ranked for each of your tracked terms as of a given date, so you know whether you are making progress toward bringing more potential customers to your site 5. Have given you a Google analytics report (or equivalent) so that you know how many people visited your site, what keywords they used to get to your site, where they came from, and what they looked at. 6. Meet with you at least quarterly to review the performance of the site, propose budgets and targets, and work with you to meet those goals. If you are not getting this basic information from your web professional, you are not in a position to measure the results of your effort to grow your business using the Internet. Unless you are measuring them, your web marketing results are likely weak. There is an old business adage: You get more of what you measure. Just starting to measure your web results will focus you on improving them. Remember only you can make business great! Contact Ron at (817) 834-3625, or e-mail at rons@MrMissionPossible.com. ■ Ron Sturgeon, an author and founder of Mr. Mission Possible small business consulting, www.autosalvageconsultant.com, combines over 35 years of entrepreneurship with extensive experience in consulting, speaking, and business writing. Ron shares his expertise in strategic planning, capitalization, compensation, growing market share providing field-proven, high-profit best practices. Tech Knowledge From the ARA Technical Advisory Committee ARA's Technical Advisory Committee Reconvenes Workgroup on Hybrid Batteries T he ARA Technical Advisory Committee (TAC) spent considerable time and resources during in 2011 and 2012 producing the Hybrid Vehicle Dismantling Guide. It is indeed a compilation of material on “all things hybrid” for use by recyclers. During the Guide’s development, however the Committee quickly realized there would be a need for follow-up for a specific chapter on the management of hybrid batteries. To this end, the TAC recently appointed a workgroup to research and draft a document that will serve as a supplement to the Guide that will focus on the following issues: • Component identification and Depowering; • Dismantling Safety and Procedures; • Handling and Storage; • Quality Control/Buyer Market (Core vs Re-use standards); and, • Shipping and Handling. The committee is fortunate to have recyclers who are expert in the management of hybrid batteries recovered from end of life vehicles who have agreed to serve as consultants to this project on an as needed basis. ARA member and Colorado Automo- tive Recycler member Eric Sumpter is one of those consultants. His facility, Adopt-A-Part, is dedicated to the recovery of hybrid batteries. He brings to the table a unique perspective as Adopt-a-Part, is working with Toyota Group companies to serve as a Rocky Mountain Regional collection and consolidation center for high voltage battery recovery. The workgroup also intends to reconnect with other resources in the battery recycling industry who contributed their expertise to the Guide and who will hopefully agree to contribute their valuable expertise to the development of this chapter. Also, ARAU (seen above) has offered its extensive training resources and platform to help bring a quality product to the industry. Lastly, the Committee will take into consideration the extensive ongoing research taking place at the U.S. Department of Energy’s Vehicle Technologies Office by its hybrid vehicle research team as well as the activities of the U.S. Environmental Protection Agency’s Office of Transportation and Air Quality in this research area. ■ Find this form at http://a-r-a.org/files/Hybrid-Manual-Form.pdf and order yours today! 20 Automotive Recycling | March-April 2014 Marketing 101 By Mike French mike@mikefrench.com iStock.com/Nihat Dursun 30 Ways to Make Your Advertising More Productive and Effective W hen I was a kid I loved to watch the old Ma and Pa Kettle movies about a backwoods family with 16 children. The father, Pa, was a slow-talking fellow who never seemed to fix anything no matter how urgent. If the roof sprung a leak, or the fence railing gave way, he would simply scratch his head and say, “I’m gonna fix that one of these days.” Of course, he never actually got around to fixing anything, although his intentions seem to be sincere. I think his problem was that he had so many kids and so much going on all around him that he was just distracted and overwhelmed by it all. He didn’t know what to do or where to start. Many auto recyclers feel the same as Pa Kettle when it comes to their advertising – they’re “gonna fix it one of these days.” But, like Pa Kettle, they only have good intentions, which are not enough! Getting Around To It Some recyclers tell me they don’t get their advertising done because they simply 22 Automotive Recycling | March-April 2014 feel overwhelmed by it all – they don’t know what to do and where to start. Besides all the traditional advertising methods, there’s all the new electronic stuff including the many kinds of social media. But I think they are making it too hard. Here are a few things you can do. 1. Schedule uninterruptible time to plan your advertising. You will get more done and accomplish more advertising projects if you do. Do your planning away from the distractions of your normal work. One person I know goes to the public library and he leaves his phone in the car. 2. Make all your advertising methods trackable and accountable to results. Only do advertising projects you can measure. This will help you spend your valuable advertising dollars the most wisely. 3. Learn and do ONLY direct response type advertising methods. All advertising methods fall into two categories, Image and Direct Response. Simply put, Image (non-selling) adver- tising doesn’t ask the customer or prospect to do anything. There is no offer presented and it cannot be measured or held accountable for results. Direct Response (selling) includes specifics about products/services and tells where/when/how to get them, and results are measurable. 4. Brainstorm with your sales staff for new ideas. You will benefit from taking advantage of their valuable observations and experience. Involving them will also create good will and enthusiasm by staff towards your marketing campaigns. 5. Monitor auto recycler advertising. Especially know what kind of advertising is currently being used in your area. Get on lists so you will receive their mail-outs. How do you do this? Buy something from them, or get a family member or friend to do so and then give you what they receive. Look at what they are doing with a critical eye and use what you learn to make yours better than theirs. 6. Do advertising projects more often than your competitors do. This will give you an edge. For instance, if they send a company newsletter once a month, send yours every three weeks. If they drop something into the mail twice a year, do yours three times a year. 7. Use bounce-back offers to instantly sell again to those who have just made a purchase from you. This works because people who have just bought something from you are now predisposed to do so again. Prepare some small flyers featuring some specials to use for this purpose. Place them in your statement envelopes to ride along with customer receipts. Include one with every shipment and even to be hand delivered by your delivery drivers. Have your sales staff give one to each person they make a sale to at your store. 8. Up-Sell. Studies have shown that people will generally say yes to an up-sell opportunity up to 20% above the cost of their original purchase. If they just spent $100 with you, you can easily add another $20 to the sale by offering them at the point of purchase something else they need. Put up-sell products into place and train your sales staff how and when to present them to customers. For instance, if a customer just purchased an engine, the salesperson would say, “Do you need oil, seals, and belts to go with that?” Yes! You should sell things like fluids, belts, and specialized tools needed to help with the install. By making only five up-sell purchases of $25 per day, at the end of their year you have increased sales by $32,500! 9. Read at least one good advertising book a month. This will help you stay abreast of new and exciting advertising trends and methods. 10. Attend an advertising/marketing class or conference at least once a year. 11. Become “the” automotive recycling expert in your marketplace. This will make you the go-to-person by the media. When anything newsworthy happens they will seek you out and interview you about it. To become the local expert you simply proclaim that you are “the” expert and you add the title to all your advertising, “John Doe, The (city/county/state) Top Expert in Automotive Recycling!” By the way, there can be only one so called top “expert” in any field per community and the title goes to the first one to proclaim it, no matter how young or old. Anyone else who tries to self proclaim after the fact will fall flat as a Johnny-comelately, or an “also ran.” Be first! 12. Use social media. There is Facebook, Twitter, and LinkedIn, just to name three of many. Learn and do one social media method at a time until you master it. There are many how-to books available to teach you that you can find online. There are also systems that post to all your social media with one click. 13. Hitch-hike your ads along with a noncompetitor business who sells to your same marketplace. You may find some new clients among their customers and contacts that you have not reached. If they have a newsletter or do direct mail, ask to include an ad in it about your products and services. Contribute to the costs and you both save money. 14. Phone your customers. This has proven to increase sales up to 35% in one month. Call five of them per day and ask how they are doing and to check to see if they need anything. You will catch some at their point of need and they will order something on the spot. 15. Send thank you notes to those who have made purchases from you. Include a coupon to use on their next purchase. 16. Ask for referrals from your best customers. Contact referrals immediately and introduce yourself, mentioning who referred you. Ask if they need anything. 17. Call old customers who haven’t bought from you for a while and tell them you miss them. This will help you discover and fix problems that may have caused them to leave. 18. Do a mailing beyond where you are currently doing business. Include moneysaving coupons to attract new business. 19. Update your mailing list often. Buy a fresh mailing list from a list supplier twice a year rather than to get a list and use it for the entire year like most companies do. This is so that you get the new startup businesses more often than your competitors do. You will be able to advertise to them months before your competitors do. 20. Collect e-mail addresses from customers and send special offers to them. Have a place on your website where customers can sign up. Give them a reason to sign up with enticements of special offers and savings on offers just for them. 21. Make it possible for customers to order parts directly from your website 24/7. Even though this may seem like an expensive thing to do, it is really not. Customers will be able to order anytime online and it’s like having another salesman, for free. Besides, more and more folks prefer buying this way. 22. Write a column for your newspaper and/or your state association newsletter. Most papers are looking for freelance articles. This will give you free publicity. 23. Upgrade or improve your business signage and delivery truck look. Make sure your business name, parts slogan, phone number, and website are prominently seen. 24. Use QR (quick response) codes everywhere and on everything. It’s the new way for people to instantly access your website or watch a YouTube video on their smart phone about your business. 25. Create YouTube videos. Use them to introduce new products, to introduce your staff, or even to explain how to do proper installs. Get creative with them. Post them on your website and social media to let people know they are there. 26. Broadcast a list via e-mail of your new arrival vehicles each week to your customers. This will act as a reminder to them that you are in business and may even get you some part orders. 27. Accept competitor coupons. Turn their coupon campaigns to your advantage. Sweeten the deal by adding, “PLUS, 5% or 10% MORE!” Advertise that you accept competitor’s coupons by posting it on your website and elsewhere. If you include coupons on your advertising materials make one that says, “We Accept Competitor’s Coupons PLUS 5%!” 28. Utilize secondary offers and freebies. Use a headline on your marketing materials that says, “Wait! There’s more!” to make fence sitters respond positively and immediately to your offers. Use nice t-shirts, ball caps, and other items for this. There are thousands of possibilities. 29. Utilize unsold advertising space. Save money on your ads by always asking for “unsold” advertising space in publications that go to your marketplace. You can save up to half the normal ad cost by doing this. Have ads created and ready to use for this purpose. Ask publications to let you know just before they go to press that unsold space is available, then submit your ready to go ads to go into the space. 30. Use Craigslist. It’s a way to get almost instant results for free. You may not be able to use all of the above ideas but you should be able to use some of them to get, and stay ahead of, your competition. Finally, regarding your advertising, don’t ever be like Pa Kettle and say, “I’m gonna fix that one of these days,” but instead, do something now! ■ Mike French, president of Mike French & Company, Inc., can be reached toll-free at (800) 238-3934, or visit his company’s Web site at www.MikeFrench.com. March-April 2014 | Automotive Recycling 23 Tomorrow’s Workforce By Pat O’Connor poconnor@waubonsee.edu The Customer-Focused Approach T he breakdown of our economy in 2008 and the realization of our dependency on foreign oil has set a new area of automobile into motion. The race is on to improve gas mileage, lower our carbon footprint and increase safety. Not since the creation of Silicon Valley in the 70’s have we seen such explosive growth in innovation. Along with this new technology entering the mainstream will come a need for change in our labor force. Today’s automotive technician must endure many hours of education and training to handle the challenges they will face when working on today’s vehicles. No matter if they are repair technicians, auto body technicians, or auto recycling dismantlers, understanding the advanced technology that is incorporated into today’s vehicles is crucial to producing quality and productive work. But producing accuracy and quality is sometimes not enough to win over the customers needed to build a successful business. Beyond Technical Every customer is unique in that each one has their own point of view of what they expect when they are looking to buy parts or to have their vehicle repaired. Satisfying as many of these customers as possible, if not all, is the true focus of every auto repair and parts business. The automobile can be challenging to repair or dismantle but the solution is usually black and white; either it is fixed or it isn’t. Customers, on the other hand, tend to be more challenging. A tried and true adage that has endured for generations and helped put distraught minds at ease: “We can please some of the people some of the time but not everyone all of the time.” For myself, as an experienced auto repair technician, this anecdote only worked some of the time. Yet, when business is down and sales are grim “pleasing whomever you can” becomes the phrase that pays. An associ24 Automotive Recycling | March-April 2014 With new technology entering the mainstream will come a need for change in our labor force. ates degree in automotive technology and over 400 hours of manufacturer training allowed me to understand and diagnose every problem that passed through my work bay during my career as an automotive technician. But some customers were still not happy. “You win some and you lose some” is what one service manager advised me. Technical training, diagnostic strategy, and vehicle knowledge are all needed to insure that repairs are completed accurately. But could it be that what the trained technician sees or hears is different than what the customer is saying? Hearing Beyond Words Here at Waubonsee Community College, our Automotive Technology program and Automotive Recycling Program assures that participating students will learn all of the skills needed to perform accurate repairs and dismantle vehicles in a systematic and efficient manner. These skills are a necessity for all auto technicians and dismantlers, but they are only the foundation to a more complete approach to satisfying customers’ needs. A “customer focused” approach to problem solving is what students are challenged to explore as they learn. Rather than focus strictly on the fault that lies within the vehicle, they are taught to start with the customer’s point of view. By doing this they are able to better understand what the customer’s problem is rather than just looking to repair an ailing vehicle. Through this approach the customer’s needs are attended to first. Whether it be something as simple as explaining the proper procedure on how to operate the vehicle or as sophisticated as diagnosing an on-board computer communication fault, the customer’s wants and needs are the focus. This also applies to auto recycling, as well. Waubonsee’s auto recycling course students are challenged to view the need of vehicle parts from a customer’s point of view. Seeing the end result of what will be made available to a customer helps a student find better ways to improve quality in the parts that are removed and inventoried, as well as explore new and creative ways to market used parts to customers. If the customer is not figured into the repair and recycling process, then what they are looking for will be overlooked. Solving Customer’s Problems Automotive recycling, automotive repair and auto body repair all service different areas of the automotive field, but share one commonalty; they are in the business of solving customers’ problems. The parts, the painting and the repairs are all part of the actions that are needed to achieve this goal, and pleasing a customer may simply only require a better explanation of repairs, a more user-friendly parts ordering system or better packaging. But what is paramount to the success of the entire automotive recycling and repair industry is the understanding that the automotive recycling, automotive repair and auto body repair industries will need to come together and understand the needs of one another to better achieve this goal. ■ Pat O’Connor developed and instructs the Automotive Recycling Program at Waubonsee Community College. Over the past year, he leveraged relationships with local auto recycling businesses and associations, such as the Auto & Truck Recyclers of Illinois and the Automotive Recyclers Association, to develop one of the first recycling programs of its kind. He has an associates degree from Triton College in Automotive Technology, multiple industry certifications, and worked as a professional Master Automotive Technician for over 22 years. Lessons Learned By Ginny Whelan ginny@araeducation.com Connect with People Through a Unique Customer Experience Everyone ow! text What an unbelievable amount text of activity taking place all around us – in our businesses and the automotive endit. recycling ■ industry. When we grasp the full scope of it, it’s a different industry now, and we need to be a different green recycled auto parts supplier. Public companies, trading partners, and independents – it doesn’t matter what type of automotive recycling parts supplier – the industry is more competitive than ever. Vehicles are more complex, maintenance periods are longer, and attrition (life of the vehicle) has extended. Recyclers need to adjust. Survival in today’s auto parts industry will come down to one word: VALUE. There are hundreds of issues that turn customers away from our businesses instead of toward it. There is an alternate way to look at this negative activity and allow us to turn it back into higher levels of customer commitment. There are hundreds of new opportunities to connect with people to grow business. W Negatives to Positives The concept is simple – we want the customer to understand the value of a green recycled OE part. Auto recyclers have always had a more customer centric mindset. We need to new find ways for customers to better see it. “The battle we have before us is with ourselves. As an industry we are disjointed. Behind every stereotype, there is some reality. The Automotive Recyclers Association has gone to great lengths to develop standards and best practices, but has had limited success in implementing those standards and practices throughout the industry. Some of it comes from lack of membership, but most of it comes from a lack of desire to change the stereotype. I think that if we all took the opportunity to become more ‘customer centric,’ even with each other, it would do a lot to change the stigma we have created,” says Survival in today’s auto parts industry will come down to one word: VALuE. Eric Schulz, AAA Auto Salvage, and Chair of the ARA Gold Seal committee. During a recent ARA University training webcast focused on customer interaction, emphasizing understanding and building a customer centric connection, the false reality that all customers are focused only on price was replaced with the customer knowing they’re getting great value for that price. Now, it’s all about communicating and creating that company environment, with the added push to display and discuss the certifications ARA CAR and Gold Seal as a value for customers. When your team grasps the full scope of activity taking place for the customer experience, a true relationship that fulfils a customer’s expectation evolves. Combining these efforts with a wellkept and sustainable business environment is what makes the CAR/Gold Seal automotive recycled parts supplier customer centric, focusing entirely on the value it can provide to the customer. Are You Left Behind? The expectation of the customer and the bar of the industry has been raised in the last few years. The life span of a vehicle has lengthened. This is not the same industry and we can’t operate the same way. We must work to never turn a customer away. It’s really hard, but in the end you have to do it. If you say no or make them wait, they aren’t going to come back. Customers are different today because they do their homework on the Internet. They expect you to get it right the first time and in less time than in the past. It’s all about customer perception. They don’t care what goes on in the dismantling area, warehouse, or storage area. All they see is the final part, the invoice and the interaction with your staff. There’s always going to be someone with a cheaper price. So what are you going to do to make your business stand out? What is your company distinction? Have you trained your sales associates to be advisors? Like it or not, customers tend to have a negative perception of recycled auto parts. By helping customers understand that the part is original equipment (OE) built for their car to meet their repair needs, you are advising them on proper part selection. Consistency is the Edge Do you keep the communication with your customers consistently? Do you train and practice with your staff a consistent company message so they are all on the same page? Do you adjust to the work flow to build buy-in and performance? All these questions can be answered with the development of your company value proposition for your customers. Start by identifying your target customers and the repair problem and how your recycled OE part provides the solution. What differentiates you from the competition? Next develop your company service statement for each target customer (repairers, recyclers and direct customers). Package your business with services, tools, practices and training that enables operational excellence that delivers improved performance as measured by customers while increasing profitability. In the end, companies that think like this will stay ahead in the game. ■ Ginny Whelan, an ARA Past President, is Managing Director of the ARA Educational Foundation and founder of the ARA University, the leading Web-based training resource in auto recycling education. Visit www.arauniversity.org. March-April 2014 | Automotive Recycling 25 ISO 9001 By Mary McDonald marymcd@mcdcg.com Building Trust In A Partnership to Improve Market Share N Contreibw and Col utor umn! ll good partnerships are built on mutual respect and trust. Looking at automotive partnerships, we find that partners gain something in the partnership that makes the relationship worthwhile to both. When both companies find something of value in the deal, it makes it worth pursuing. The question becomes – how to build up that trust? Thankfully there are relevant partnerships from recent history that pave the way for today’s new relationships. For example, New United Motor Manufacturing, Inc., or NUMMI, started as a 1984 partnership between GM and Toyota, established to produce cars for both manufacturers. Through this partnership, GM was able to learn “lean” techniques (to eliminate waste) from Toyota and Toyota built the first North American manufacturing facility and learned how to implement their production system in a U.S. facility. The site was a former GM factory, and well-suited for production. Much can be learned from this partnering between two manufacturing legends who competed for similar markets while at the same time partnering in specific areas for mutual benefit. It was indeed a partnership built with trust and confidence in each partner’s reputation and product line. Fast-Forward to Your World In the automotive recyclers’ world, one may choose to partner with a variety of groups in order to build his business: • partners who help him/her manage their business; • partners who band together to form alliances; • partners who they purchase their inventory from; and, • partners who buy their inventory. These partnerships allow a recycler to focus on building a brand, getting recognition for delivering quality OEM recycled automotive parts on time at a fair 26 Automotive Recycling | March-April 2014 iStock.com/D_BANK A price, and working more efficiently. The question then becomes – how do you know who to trust? How do you know how much you can trust them? Trust is like a bank account – you have to deposit before you can withdraw. You need to start building trust before you can ask for trust. This is done in a variety of ways, but the most often done by: • saying what you will do, • doing it, • acknowledging and apologizing when you fall short, then • fixing it. Accountability Helps Back in the 1980s, with the growth of international markets, companies in a wide variety of industries discovered that they had barriers to business when trying to sell their products outside their local industry. Consumers’ attitudes were, “I don’t know you, so how do I know that the product you made is any good?” To combat this lack of accountability, the International Organization for Standardization developed the ISO 9001 Standard, which was based heavily on the U.S. Military’s standard for quality. This ISO 9001 Standard has been updated several times since then, but is still based on the following original principles: • Understanding and meeting requirements, • Considering processes in terms of added value, • Obtaining results of process effectiveness, and • Continual improvement of the process based on measurement. Wait – doesn’t this list look like the list outlined above for building trust in the automotive recycling industry? It appears that the standard writers understood that the standard should support businesses, not the other way around. So how does this standard work? It ensures that management is involved in the business – that there is someone who is steering the ship. It ensures that there are adequate resources available – both in terms of headcount, equipment, and physical space – to do the job you are contracted to do. It looks at how you do what you do to ensure that it’s repeatable; and it relies on measurement and checking to ensure that you are doing what you said you were going to do. Now imagine a potential partner came to you and said, “I’d like us to work together. Here’s what I bring to the table, with my existing partners – I have a good relationship with my supplier – I’ve always gotten what he said I was going to get. My people are trained, and we’re efficient, so our pass-through costs are well within the industry standard – I have the data available to show you that. We package the part so it arrives in the same condition that it left us, and we have photos of the part I can show you. And, when we do get a customer complaint, or a return, we work to make it right, and have the data to back that up also. So, would you like to do business together?” How much confidence would you have in them? How likely are you to trust them? Let’s take it one step further – potential partners may have data, but how do you know it’s good data? How do you know it wasn’t just manufactured on the PC for this one time purpose? You would know that the potential partner had much to offer if his facility held a recognized certification earned through an independent audit – you would know the quality of his offer if he were ISO 9001 certified. Certified the Best ISO 9001 requires that an independent group, called a registrar, independently audits the facility – not just the data, but the entire facility. During the audit, the registrar will ask questions of management, employees, review data, and inspect customer complaints and returns. A pass/fail assessment will be made and a certificate awarded if the facility earns a pass rating. The benefit of the ISO Standard is also flexibility – it allows you to do things the way that make sense to you. Let’s look at an example: You’ve decided to build trust by getting independently audited in preparation for being certified. You have to keep data on customer returns and complaints, as we’ve talked about. The ISO standard doesn’t care how you keep those records; only that you keep them. If you write them all down on the back of your grocery receipts, and put them in an envelope marked “Customer complaints,” that’s fine; if you have them logged into a computer, sortable by type of complaint, cost of the return, etc; that’s fine also. ISO lets you develop your system so long as it meets the requirements. Are there tools out there that will help you do this easier? Absolutely. Are there modules on your estimatic programs that meet these requirements already? Yes. But do you have to have a specific program to meet the standard requirements? No. What works for you and meets the standard is fine. Trust is built up over time and provides the basis for productive partnerships. Becoming ISO certified will help you build trust with industry partners to help improve markets for recycled OEM automotive parts. ■ Mary McDonald is the CEO/CTO of The McDonald Consulting Group since 1995, working to help clients improve processes to positively affect the bottom line. She is a Certified Quality Auditor and a RABQSA Certified Lead Auditor in several standards, as well as an author and speaker on systems integration and strategic business planning. March-April 2014 | Automotive Recycling 27 RECYCLERS & REPAIRERS Partnerships IN Automotive Working Together to Maximize Successful Business Models and Meet Consumer Needs T Repair he publication of ARA’s Special Report: Partnerships in Automotive Repair comes as all stakeholders in the automotive sector continue to adapt to the effects of seismic change that have taken place over the past few years. As the average age of vehicles on the road continues to rise, many auto manufacturers have rebounded and technological advances in vehicle design, structure and electrical components are in the headlines seemingly every week. The professional automotive recycling industry is not immune from this dramatic transformation and challenges us to meet emerging markets in new and creative ways. Strengthening existing partnerships 28 Automotive Recycling | March-April 2014 and building new ones is one such way that automotive recyclers are working with other industry stakeholders to ensure an efficient vehicle repair process for the consumer and continuing to build successful business models for the future of our industry. Professional automotive recyclers are just one of the various players in the vehicle repair process. Because the industry is so vast and interconnected, ARA is working continually to engage those partners that want to help advance the automotive recycling profession. In this Special Report, readers will hear from a robust collection of industry representatives offering unique perspectives on the role that recycled OEM parts play in the vehicle repair process as well as potential opportunities for partnership. With new vehicle design, I can foresee that recycled parts would be more at the forefront in our minds on how they will be used. I would suggest that auto recyclers continue their education on dismantling these unique parts. – Dan Risley, Automotive Service Association iStock.com Illustration: Adelevin; Parts: Lazarev; Box: Bibigon; Icons: missbobbit ® ® March-April 2014 | Automotive Recycling 29 RECYCLERS & REPAIRERS Getting the Part: Connecting Automotive Recyclers and Repairers An Interview with Dan Risley, Automotive Service Association (ASA) RELATIONSHIPS ARE A KEY PRIORITY FOR DAN RISLEY, Executive Director and President of the Automotive Service Association (ASA). His organization advances professionalism and excellence in the automotive repair industry through education, representation, and member services, serving owners and managers of automotive service businesses that strive to deliver excellence in service and repairs to consumers. ASA has 5,000 members and an additional 2,000 through affiliation. Our member’s business goals are pretty simple as it relates to recycled parts. “Utilize readily available, cost effective, high quality parts that help keep repair costs and cycle times down,” says Risley. As for the use of recycled auto parts in repairs, Risley has a positive view of the role professional automotive recyclers play in their industry. “Over the last 15 years, I have seen a very genuine and positive outreach from auto recyclers who want to bridge the gap to work effectively with repairers,” says Risley. “Recycled auto parts are an essential part of the supply chain from all perspectives – from insurance, collision repair and mechanical.” Risley understands the chain of commerce in a unique way, a result of his vast experience in the automotive sector. Growing up, he worked in a familyowned body shop before working in sales and service for BASF, and later as a project manager for CCC Information Systems. He spent eight years as the executive director of another collision repair association and had a five-year segue as a market claims manager at Allstate Insurance before joining ASA. A Theme of Education “Working in the insurance industry was an invaluable educational experience for me,” says Risley. “I had oversight of the Allstate Direct Repair Program for half of the United States, where we relied on alternative parts. During my time at Allstate, I saw the technical and research side of insurance through Tech-Cor.” He believes the automotive recycling community has done some great work to better their partnership 30 Automotive Recycling | March-April 2014 with insurance companies, collision repairers, and mechanical shops. “The ARA Damage Codes are making a big difference to the process, as is the ongoing education by auto recyclers on unique items, like recycled airbags, under the ARA Airbag Protocol. Educating themselves on the challenges and possibilities of selling certain recycled parts is key. For instance, recycled assemblies are not as cut and dry to estimate on an insurance claim, and reaching out to educate all industry segments on how these parts can and cannot be used will drive usage,” he says. “Using recycled parts is not an issue for repairers. How specific parts are used in the future is a concern. As cars continue to change in design, I can foresee a reduction in the parts that are available to repairers. I would suggest that auto recyclers continue their education on dismantling these unique parts and assemblies.” Progressive Partnerships While salvage vehicle availability is not a top concern, ASA acknowledges that there are potential ramifications to their industry. With the growth of global online salvage vehicle sales, drawing from reports of the online salvage auction companies, one can estimate that approximately 30 percent of the 3.5 million “total loss” vehicles are going overseas. “While we have not legislatively spent time on this issue, we know that the availability of salvage parts is key to maintaining repair costs. We would be very interested in exploring partnerships and opportunities to protect our mutual interests,” says Risley. “There are many ways ARA and ASA can support each other,” says Risley. ASA’s strong affiliate state chapters are where he suggests partnerships could be most effective. “Our state affiliates are the foundation of the national organization. We are only as strong as our affiliates.” “Some of our affiliates have 100 to 300+ members. These shops could lend a favorable voice to a shared legislative issue,” he continues. “We have a lobbyist on Capitol Hill who can be of assistance on the national level.” Another way the two associations could collaborate could be some level of participation at ARA and ASA annual meetings and Hill Days, he suggested. Industry Trends Another interest that both industries share is the availability of critical automotive parts data, such as manufacturers’ RPO codes. Like ARA, ASA applauds the recent Memorandum of Understanding (MOU) between the Alliance of Automobile Manufacturers, the Association of Global Automakers, the Automotive Aftermarket Industry Association, and the Coalition for Automotive Repair Equality, regarding motor vehicle owners Right to Repair. “We were very happy to see this; it further supports their MOU that was initiated with ASA years ago. Any time organizations work within a voluntary agreement, outside of a legislative mandate, is a positive step,” says Risley. In terms of available repair information, ASA has a good relationship with I-CAR and the National Automotive Service Task Force (NASTF). “We have a Board position for I-CAR at ASA and are aware of their activities,” says Risley. “As for NASTF, we have a contract with the Vehicle Security Professional (VSP) Registry, a service created from the NASTF Secure Data Release Model (SDRM), and an ASA employee manages the program. For both of these initiatives, we have not seen anything that dispels the idea that gaps in repair information will be addressed through these two entities.” Automotive Recyclers and Repairers In Risley’s opinion, there is no mystery on how automotive recyclers can increase the utilization of recycled parts by repair and mechanical shops and get more support for recycled OE parts from the insurance claims community. “Continual evolution on part quality, delivery, and part descriptions is the key,” he says. Overall, the ASA and ARA have the same ultimate goal, to benefit the consumer with excellent customer service, quality work and product, reduced costs, and quick turnaround. The more communication and education that can be created, both recycler to repairer, and organization to organization, the more both industries will advance into the future successfully. Learn more about ASA at www.asashop.org. ■ Caryn Smith is the editor of Automotive Recycling magazine. March-April 2014 | Automotive Recycling 31 RECYCLERS & REPAIRERS A Repairer’s View on Auto Parts Recycling Relationships By Darrell Amberson, Automotive Service Association (ASA) I ’VE BEEN BLESSED TO SERVE IN OUR INDUSTRY FOR OVER 40 years in a few different roles, but always as a repairer (with the exception of a couple of years as a professional drag racer, but that’s a different story). I am currently Vice President of Operations for LaMettry’s Collision and also the chairman of the Automotive Service Association (ASA). I think of the automotive parts recycling industry as a partner to the repair industry in a similar way that I think of the individual salvage recycled parts businesses and people as partners with me and the companies I’ve worked for. While we have different roles, we essentially all “play in the same sandbox.” The roles we play cause us to be, in many ways, inseparable. We are dependent upon each other. As an estimator in the past I knew that insurers would expect me to consider recycled parts and often offer proof that I researched the opportunities. Beyond that, I knew that in many situations it simply made sense to utilize such parts. Cost, convenience, and efficiency were always the considerations. I had the benefit of forming relationships with a number of recycled parts business owners and their teams. For those with whom I could develop a high level of trust, I became reliant on their input and, in fact, often on their advice. In today’s world, the need for the relationship is similar. Of course we need to embrace new forms of technology that improve our speed, sophistication, and communication. Of course we need to increase the level of knowledge of the condition and availability of recycled parts. Of course we must have competitive pricing and service. But beyond that, we need a level of trust and dependability that causes us to not only “need” to work with each other, but instead causes us to “want” to work with each other. Many of us are diligently and persistently working on improving our shop flow and process to continue to be a trustworthy and dependable shop to the insurance companies and the consumer. Excelling in the measurements or key performance indicators (KPI’s) that the insurers judge us by is an incredible motivator. I foresee a time when con- 32 Automotive Recycling | March-April 2014 While we have different roles, we essentially all “play in the same sandbox.” The roles we play cause us to be, in many ways, inseparable. We are dependent upon each other. sumers judge us in a similar fashion. We are striving to create high levels of efficiency in time and costcontainment. A key to accomplishing our goals is to provide an unprecedented level of predictability. We need to promptly disassemble damaged vehicles, identify ALL damaged components, accurately determine repair methodology and estimate costs (often referred to as “blueprinting”), promptly obtain parts that arrive within the predicted time and in the expected condition, perform the actual repair, and deliver the car as promised. We need to be able to provide consumers and insurers with accurate costs of repairs and dependable completion times immediately after the blueprint process. For those who are able to excel in providing this level of predictability and efficiency, there is great opportunity for success in the future. Some shops won’t be inclined or able to make the necessary investments. Similarly, there is opportunity for those recycled parts vendors who will and can provide the levels of dependability and efficiency for shops to obtain the desired levels of repair predictability. Through trust, communication, and mutual respect, we can work together to propel our industry into the future. When we behave as business partners and work together for the common good we can accomplish great things. This principle should be the key to our relationship. ■ Darrell Amberson, currently Vice President of Operations of LaMettry’s Collision, serves as Chairman, Automotive Service Association since 2013, and a member of the ASA Board of Directors since 2004. He serves on Government Affairs and Insurer/Repairer Relations Committees, CIC; is a Collision Industry Hall of Eagles inductee in 2009; Chairman, NACE, 2007-2008, and among other committees. Connecting Partners in the Repair Process By Rick Poor, Mitchell International R ECYCLED PARTS HAVE LONG BEEN RECOGNIZED as a cost effective alternative to OE New and with today’s heightened focus on being “green,” utilization of recycled parts in the collision repair process makes more sense than ever. For auto recyclers who want to have their inventory of parts made accessible to the estimator, Mitchell’s Quality Recycled Parts program (QRP™) is an excellent solution. • QRP data is processed and made available to insurance, independent appraiser, and repair facility estimators on a daily basis. • Fully integrated with Mitchell Estimating, QRP provides easy access to recycled parts during the estimate writing process. • When selected as an alternative to OE New parts, the part price, recycler contact information, part details (damage codes, notes, etc.) are automatically included in the estimate to repair. QRP utilizes a data feed from CarPart.com as its primary source of recyclers and their inventory. Once a recycler becomes part of Car-Part’s network, they would send their inventory updates to Car-Part in accordance with Car-Part’s process and procedures. CarPart in turn sends data updates to Mitchell daily. Mitchell then processes the data to filter out parts that do not correspond to items in Mitchell’s Collision Estimating database or do not adhere to data format rules (zero prices, etc.). Once processed, the data is staged and ready to be downloaded by QRP. Mitchell Estimating/QRP users typically configure the software to download and update the local database every morning. Once the data is in QRP, it is accessible by Mitchell Estimating. When the estimator selects “recycled” as a part type for a particular repair line in Mitchell Estimating, a screen displays a list of substitute recycled parts and provider con- When the estimator selects “recycled” as a part type for a particular repair line in Mitchell Estimating, a screen displays a list of substitute recycled parts and provider contact information from the QRP database. tact information from the QRP database. The estimator then selects the recycled part and provider of their choosing. Another option for repairers is the RepairCenter™ ToolStore. Mitchell International has partnered with Car-Part.com to create two-way integration through the RepairCenter ToolStore, making it possible for body shops to search for green parts in the Car-Part Pro marketplace directly from the RepairCenter Workspace. Similar to the process described above for QRP, once a recycler becomes part of Car-Part’s network, they would send their inventory updates to Car-Part in accordance with Car-Part’s process and procedures. Car-Part then includes the data in their database making it possible for body shops to search for green parts in the Car-Part Pro marketplace directly from the RepairCenter Workspace. Mitchell International continues to explore innovative ways to connect the partners in the repair process through more seamless and efficient interfaces to assist each stakeholder in maximizing profits, containing costs, maintaining quality, and reducing cycle time. For more information on QRP, RepairCenter, or additional emerging interfaces for parts providers, visit www.mitchell.com. ■ Richard Poor is Mitchell’s Director, Product Management, Auto Physical Damage Solutions. March-April 2014 | Automotive Recycling 33 RECYCLERS & REPAIRERS Auto Recyclers in the NASTF Conversation By Skip Potter, National Automotive Service Task Force (NASTF) M Y 49-YEAR-CAREER IN THE AUTOMOTIVE industry means I have seen considerable change (improvement) in the automotive recycling industry. Growing up on the aftermarket parts-side of the industry, “junk yard” parts and the businesses that sold them were considered by some in the supplier family to be the black sheep or stepchildren back then. The customer, however – both DIY consumer and garage, especially the body shops – held such parts and people in much higher regard. Ultimately, it is unselfish, wise, and productive for any national conversation on the topic of automotive service to include all viewpoints – in the channel from manufacturer to shop – and across all segments from retail to aftermarket and recycling, as well. Before the 1990s, most automotive parts organizations explicitly forbid “used auto parts” businesses from their trade associations. As old-time junk yards evolved into the state of the art salvage yards, the used auto parts business, along with the role of the professional automotive recycler, has gained, for the most part, local and national acceptance in most automotive communities. An industry as diverse as automotive has many functions and segments and it is the customer, not the supplier, who defines an industry. While I spent much of my career as a parts sales- The NASTF Mission The National Automotive Service Task Force (NASTF) is a notfor-profit organization established to facilitate the identification and correction of gaps in the availability and accessibility of automotive service information, service training, diagnostic tools and equipment, and communications for the benefit of automotive service professionals. NASTF is a cooperative effort among the automotive service industry, the equipment and tool industry and automotive manufacturers. There is no cost to participate in NASTF, which is open to professional auto service technicians, shop owners, their service writers, OEM service employees or any other automotive industry professional supporting the mission of NASTF. If you believe in the NASTF mission, indicate your support by joining online at www.nastf.org/GetNASTF. Auto recyclers, too, should be sitting at the NASTF table where OEMs, independent shops, dealers, and parts suppliers are all there representing. man, I fondly remember the old days. Whether working part time in a body shop or gas station, caring for my own vehicles, or building my hobby-stock race cars, I spent a fair share of that life walking isles of cars of auto recycling yards, searching for parts I needed. Comparatively, the customers of today’s ARA professional automotive recycler member are pampered with the online parts networks, parts racks, and store front inventories. It was an unimaginable alliance when the OEM/ automakers sat down with independent repair shop owners in Las Vegas in 2000 and proclaimed cooperation under the voluntary conversation referred to as the National Automotive Service Task Force (NASTF). One of the OEM representatives at the table in those days later recalled that while the automaker had built for independents what it thought was a robust path to service information and the independents had, at the same time, developed separate means to tap into OEM resources through dealership connections, the result was incomplete and inefficient. “It’s like we had built two half-bridges” [attempting to connect the OEM resources with the independent service technician], said Steve Douglas, a regulatory affairs staff member of the Alliance of Automobile Manufacturers, “but our bridges never met in the middle.” NASTF was a chance to start over and get it right. As the NASTF discussion broadened from emission service information to include concerns of locksmiths, collision shops, and aftermarket educators, it should be clear today that recyclers, too, should be sitting at the NASTF table where OEMs, independent shops, dealers, parts suppliers, the technical press and educators are all there representing the segments of mechanical/drivability service, security and collision. From NASTF, welcome ARA and its members. ■ Skip Potter is the Executive Director of NASTF. 34 Automotive Recycling | March-April 2014 RECYCLERS & REPAIRERS Improve Your Business by Maximizing Sales to the Collision Repair Industry By Bob Jabjiniak, CCC Information Services A QUESTION RECYCLERS OFTEN ASK ME IS “How can I sell more parts to collision repairers?” My answer: Make it easier for your customers to do their job well. Most of us need to do more with less these days, so working smart and helping your customers work efficiently have become critical to a company’s success. Are you doing the things that make your customer’s job easier or more difficult? How well do you understand your customers’ job? When car accidents happen, a majority of collision repairers use technology to manage and improve the repair process – from estimating repair costs, managing the repair itself, communicating repair status with the insurance company and the consumer, and measuring performance. Parts procurement is an integral step in this process and one that can impact a collision repairer’s key performance metrics, including costs and cycle time. Many parts suppliers know the import role they can play in a collision repairer’s workday, which is why in the past year, recyclers have joined with CCC to create the industry’s only free data network that directly connects recyclers with collision repairers. Recyclers that are making the most of this network are seeing their efforts translate to improved sales – typically in the 20-50 percent range. How It Works CCC ONE™ Estimating, the industry’s most widely used estimating solution and its broadly adopted shop management solution, allows recyclers to embed part inventories into its system putting available parts directly in the path of purchase for thousands of collision repairers who use CCC ONE every day. Your connection to CCC also means important information on recycled OEM parts are available to collision 36 Automotive Recycling | March-April 2014 repairers as they write estimates and repair decisions are made. What can you do to help make life easier for your customers? Some of the most impactful things being done by some recyclers today include: • Getting Connected and Staying Connected Make sure your parts inventory management system is connected to CCC ONE Estimating, and communicating available parts inventory. If your data isn’t in front of insurers and collision repairers when they write estimates, it can create more work for anyone who wants to use your parts, requiring potential customers to call or look up information in other disconnected tools. ARA standards for grading and pricing parts are critical for customers to identify your available parts. • Improving Data Quality ARA standards for grading and pricing parts are critical for customers to identify your available parts. You are not making your customers’ life easier if they are trying to write estimates and need to call you to understand the part condition, applicability, or price. Also be sure to review your own part descriptions for obvious conflicts with how you’ve inventoried or graded the part. Customers can become frustrated with recyclers that have confusing or inaccurate data since it takes valuable time to locate what they are looking for. Prolonging the parts selection process or selecting the wrong part can negatively impact repairer performance metrics. Don’t give them a reason to remove you from their preferred supplier lists. • Participating in Recycler Groups United Recyclers Group (URG) has developed unique programs such as data-tiering and a certification program. The data certification program allows insurers and collision repairers to quickly know which recyclers will make their jobs easier simply through improved data quality. URG helps by reviewing recycler data for adherence to guidelines based on the top data quality issues experienced by collision repairers. What’s Next? Helping recyclers sell more parts by making their customers’ lives easier is important, and CCC is committed to helping you do just that. Look for more innovations later this year as CCC continues to work with professional auto recyclers and the ARA to better integrate recyclers with the collision repair industry. If you have ideas on how CCC can help, we’d love to hear from you. My email is bjabjiniak@cccis.com. ■ Bob Jabjiniak is Vice President Product and Technology, CCC Information Services Inc. Bob leads the company’s supply chain transformation efforts and is working closely with industry parts suppliers. March-April 2014 | Automotive Recycling 37 RECYCLERS & REPAIRERS Maximizing the Direct Repair Relationship By Amber Elenbaas, American Auto Parts T ECHNOLOGY HAS INFILTRATED THE automotive recycling industry so completely that when the Internet goes down it’s difficult for most people to function. You can argue we rely on it too much, that this program or that device is bad for our business in one way or another, but I have chosen to embrace any technology that I believe is the way of the future. This includes both automated and manually entered parts procurement services and programs, like PartsTrader. While others complain about PartsTrader, I’m using it as a tool to increase my sales. I first saw its value during my participation on the PartsTrader Advisory Board. Here are ways I use it to benefit my business activity. First off, you can grow your customer base. When you get quote requests from shops you don’t normally do business with, pursue those customers! Visit those shops with marketing materials or doughnuts, find out why they use your competitors, and convince them to give you a try. When shops ask for quotes all the time but never buy your parts, reach out to them and turn those leads into sales. I discovered several shops that had a bad experience with my company over a decade ago that were not buying parts due to a problem so ancient no one could even remember the details. PartsTrader puts you in contact with shops you don’t normally deal with and gives you a chance to earn (or earn back) their business. You still have to earn it, but now you have great leads – leads repairing vehicles not just for State Farm clients but many customer-pay and other insurance company jobs, too. In addition to expanding your customer base, you can expand the part types you are selling. PartsTrader shows you every part on the estimate, and you have the ability to sell miscellaneous parts that would normally have ended up in the crusher, for a healthy percentage of the dealer’s list price. My sales of trinket parts like horns, sun visors, console covers, and seat belts have skyrocketed. Not only can you increase your parts per invoice for sales to customers using PartsTrader, it will open the eyes of your salespeople to all 38 Automotive Recycling | March-April 2014 In order to succeed in the technological age, we must leverage technology resources, but we must also make a concerted effort to keep building relationships. the parts they have to offer EVERY customer repairing a vehicle. You can expand your sales by asking customers if they need those parts! Before PartsTrader, if we got a call on a fender, we would sell the fender. Now if we get a call on a fender, we try to sell them the fender, the liner, the antenna, the headlamp, the plastic bracket behind the headlamp, and the list goes on and on. Augmenting your orders with add-on parts will add to your bottom line. Perhaps most importantly, you can use PartsTrader to develop better relationships. We’ve built our businesses around relationships, and the degree of success enjoyed by our salespeople is usually directly tied to their ability to build and sustain relationships. So how do we maintain and grow our business when we replace the human contact with technology? I strongly believe that we don’t. In order to succeed in the technological age, we must leverage technology resources, but we must also make a concerted effort to keep building relationships. While PartsTrader reduces customers calling you, there’s no one stopping you from picking up that phone. Instead of only calling shops when there is a problem, you change the relationship and make it so that they get positive calls from you. Follow up on your orders; make sure they got their parts on time and that they are happy. If over half of the time you call, they say “everything is great” and hang up, psychologically they are going to start to prefer you. When you call them just to say hello and make sure they are happy, or if their kid is still playing football, or how their golf game is stacking up -– then your customers really know you care. That’s a relationship! And that’s how we will continue to grow our businesses. PartsTrader can boost your sales – if you capitalize on all it has to offer – while maintaining the human aspect. Almost anything can be a tool for growth when you decide to put it to work in your business. ■ Amber Elenbaas is a third-generation auto recycler, beginning her career at the family business, Pete's Auto & Truck Parts, Jenison, MI. Starting in May, she will become the General Manager of H&H Auto Parts in Loveland, Colorado. For the past year and a half, Amber has led the team at American Auto Parts, in Omaha, Nebraska, where she’s ramped up sales and profits, and put in place good structures so growth will continue. March-April 2014 | Automotive Recycling 39 RECYCLERS & REPAIRERS A Self-Service Automotive Recycler's Perspective: Flexibility, Adaptability, and Trust are the Keys By Jordan Madorsky, Jay Brosten, and Larry Brosten, Auto Parts City W Photo by Jordan Madorsky ITHIN THE AUTO RECYCLING INDUSTRY, the prominent role late-model auto recyclers play in relation to insurance companies and repair shops is understood. However, self-service auto recyclers who specialize in buying older vehicles have built strong relationships with repair shops, too. “Most of the end-of-life vehicles we’re buying these days are between 10 and 15-years-old,” said Jay Brosten, who along with his brother, Larry Brosten, owns Auto Parts City, Gurnee, IL. “And if you consider the average age of vehicles still on the road is more than 11 years, then used parts offer a viable repair alternative in a lot of instances -- even for traditional repair shops.” Brosten said that meeting the needs of all customers, be they do-it-your-selfers or repair shops, requires Auto Parts City to be flexible in the range of services it provides. Although Auto Parts City markets itself as a self-service used parts recycler, the staff will pull parts for customers, especially shops. They also warehouse a selection of used engines and transmissions. For repair-shop owners, adapting their service to meet the needs of their customers is also the key. “It really comes down to the expense of the repair required and the age of the vehicle,” Bob Stone, A partnership forged: Auto Parts City Co-Owner Jay Brosten (left) and Motorcade Unlimited Owner Bob Stone look over used engines. 40 Automotive Recycling | March-April 2014 Like all businesses, knowledge empowers professionals to make smart choices, balance risk with reward and build strong, ongoing business relationships. owner of Motorcade Unlimited in nearby Grayslake, IL said. “If an older vehicle needs something expensive like an engine, I’m comfortable buying it used from a reputable auto recycler like Auto Parts City because I know I can trust them. The last thing I want to do is install a used engine for a customer and find out it’s not any good.” Describing the difference between a repair shop and a do-it-your-selfer, Stone said it doesn’t make sense for his shop to take chances on less expensive items like starters and alternators or parts with a lot of moving plastic components in them like window regulators because the likelihood of used-part failure is too great in relation to after-market parts availability and pricing. “While I know Auto Parts City will guarantee the parts they sell, my customers understand that it’s still a used part being installed” Stone said. “If it doesn’t work and I have to remove and reinstall another part I have to charge for it. I’m also very aware of what parts typically go bad on different makes, years and models, so I tend to avoid salvaged parts in categories that have a history of failure. Customers depend on me to tell them when it’s worth considering a used part.” Like all businesses, knowledge empowers professionals to make smart choices, balance risk with reward and build strong, ongoing business relationships. So when Stone needed a housing for a customer’s 1997 Chevy Blazer he turned to Auto Parts City for a used one. The decision turned out to be the right one for all concerned. Auto Parts City sold a recycled part. Motorcade Unlimited fixed a customer’s vehicle for an affordable price, and a satisfied motorist got back on the road safely and reliably. ■ Jay Brosten and Larry Brosten are the owners of Auto Parts City. Changing is Expected By Jeff Schroder, Car-Part.com “In a world ... changing really quickly, the only strategy ... guaranteed to fail is not taking risks” -Mark Zuckerberg To paraphrase: the only strategy guaranteed to fail is not changing. T HE COLLISION REPAIR INDUSTRY IS CHANGING very quickly, with top insurers spending hundreds of millions of dollars per year on advertising to gain market share. There is a related focus to not lose customers during the claims process, which is when customers are most likely to switch insurance companies if they are unhappy with their service. A JD Powers study showed that the customer satisfaction index (CSI) is directly related to how quickly the customer gets their car back. The result is an intense focus on driving out inefficiencies and delays in the repair process. Tolerance levels are getting very low for delayed part orders, incorrectly described damage, and overall uncertainty about parts. These changes have a big impact on auto recyclers. Our traditional strength of being the lowestcost supplier is good, but it is not sufficient to serve our customers in this environment. Our delivery services need to be reliable and competitive with OE and aftermarket companies so that shop cycle time doesn’t suffer when customers buy a recycled part. It also means our ARA part grading must be accurate so that a shop doesn’t have to return a part because it wasn’t delivered as described. Many parts are being located in online marketplaces – Car-Part.com and Car-Part Pro serve $2.9 billion in part requests per month, including both mechanical and collision parts. On Car-Part Pro, repairers and insurers can customize their default search parameters with profiles to filter out parts and services that don’t meet their criteria. We set up many profiles on behalf of buyers, and we consistently hear that they want A grade parts with deliveries in three days or less. Car-Part.com provides a daily part grading inconsistency report to let you know which parts have been ungraded due to inconsistent damage information. These ungraded parts are filtered out by many buyers to simplify their process. Insurers and shops also need to know if they are purchasing a recycled part or an aftermarket part because requirements, pricing, and procedures are different for each part type. Quality parts, services, and information are critical to compete in today’s marketplace. Together, we are Tolerance levels are getting very low for delayed part orders, incorrectly described damage, and overall uncertainty about parts. raising the bar to supply the collision and mechanical repair industry with the parts, services, and information they need to easily and confidently locate and purchase recycled auto parts. In the less than the two short years since Car-Part Pro went live, over 18,000 repairers have joined. Thousands of recyclers are providing enhanced service information to shops and insurers with Car-Part Pro including delivery times, extended warranties, and certifications. Our strong North American supply chains (commonly referred to as brokering) enhance physical inventory and are now linked together on Car-Part Pro with the correct delivery times to ensure this increased part availability is visible to repairers and insurers. Our 4,900 traditional part provider locations are supplemented with an additional 5,100 supply chain locations (recycled, aftermarket, and discount OE) providing a total of 10,000, effectively doubling availability. Over 1,000 recyclers have been Car-Part Certified (or 5,000 equivalent locations, when including supply chains) and are committing to minimum Service Level Agreements (SLAs) to provide confidence to repairers and insurers. Recently, a top five U.S. insurance carrier who purchases over $500 million a year in parts set up all their company profiles to only see parts from Car-Part Certified recyclers. More than 1,000 recyclers are providing repairers the ability to order parts online (or 3,000 equivalent locations when including supply chains). Together, our changes are enhancing the image of our industry, increasing our competitiveness, and making it easier for our customers to buy our parts and services. ■ Jeff Schroder is founding CEO of Car-Part.com. Under Jeff's creative leadership, Car-Part.com went live in 1998 and revolutionized the purchasing of recycled parts. Car-Part’s latest innovation is Car-Part Pro, a marketplace designed to expand the use of recycled parts in the Collision and Mechanical repair industries. Car-Part also provides recyclers with integrated software for vehicle buying, inventory management, cores, production, and delivery. March-April 2014 | Automotive Recycling 41 RECYCLERS & REPAIRERS Progressive Automotive Recyclers Lead Consumers, Repairers, and Insurers to “Re-think Re-cycled” By Stacy Bartnik, Team PRP M AKING THE MOVE FROM THE COLLISION side to the auto recycling side of the industry has been a very interesting experience. Even after spending more than 25 years in the collision industry and having dealt with recyclers throughout my career, I was amazed by how much I did not know about the recycling side of things. Further, having been involved with the National Auto Body Council (NABC) for many years, and dealing with how people perceive repairers, I never expected anything but professionalism within the recycling industry. And professional is what I found as I began my new career with Team PRP. With the present day demands that the repairer faces, and their need to satisfy the insurers in the DRP environment, I was very pleased to see the approach that Team PRP has taken to address those concerns and be a top provider to those shops. I believe that most repairers and insurers would be very surprised if they visited any progressive professional auto recycler operating today. They would witness how technology now plays an enormous part in how we run our businesses – in purchasing vehicles, managing inventory control, locating parts, selling, and more. In Team PRP, they would see consistent processes and procedures in place within our network to which we hold all our partners accountable. As a team of over 130 member locations, we can meet the needs of both our partners and customers – and even help reduce stress – in the parts procurement process with our collective inventory of over five ABOUT TEAM PRP Team PRP is the largest national network of independent auto recyclers united in supplying premium recycled parts, exceptional warranties, and personal service to the mechanical repair and collision industries. With nearly five million parts in inventory, a Team PRP member can offer their customers the best warranties, quote guarantees and delivery guarantees available. Each member remains independent, ensuring exceptional personal service and competitive pricing. For more information, visit www.teamprp.com. 42 Automotive Recycling | March-April 2014 million parts. This is further enhanced by the ability to get parts where needed with our efficient intranetwork transportation system. The warranty, such as the one Team PRP offers, virtually removes any liability for the repairers when using recycled parts. Additionally, the offer of extended warranties is commonly available for anyone who finds they need something over and above a standard warranty. Team PRP, as well as other professional auto recyclers, extends a no-hassle return policy to customers, so if the repairer no longer needs the part, or has ordered a wrong part, the part can be returned and a credit issued, no questions asked. At Team PRP, if for any reason we have not met our delivery time, or we provided an incorrect part resulting in a delay causing the need to provide a rental car, our warranty provides a rental car allowance. This is just another advantage that helps to put customers – both insurers and repairers – at ease. Team PRP partners are truly just that – partners. All locations work very closely together in a number of ways, such as by sitting on our board, or being involved in one of our many committees. Our partners are pleased to share ideas and, together, develop the best-in-class processes to meet the needs of the customers that we service. And as we do this, we also make it our goal to help educate the end user on the many benefits of using recycled parts. Not only do we partner with each other, we also partner with the repairers and insurers that buy and use our parts. We are tremendously committed to building positive and helpful relationships with our customers to not only provide them with a quality part, but also demonstrate the beneficial value of a partnership with Team PRP. Team PRP’s growing number of partners continue to make it their priority to do what is best for their customers to ensure that all are truly 100% satisfied. As our slogan states, “It’s time to re-think re-cycled!” ■ Stacy Bartnik is Executive Director for Team PRP, representing over 135 Automotive Recyclers. Prior to joining Team PRP Stacy Bartnik was CARSTAR’s Vice President of Operations. Ms. Bartnik has worked in many segments of the collision industry, including Shop Estimator, General Manager, Insurance Adjuster, Trainer and Consultant. Ms Bartnik was inducted into the Collision Industry Hall of Eagles in 2010. JUNE 18-20, 2014 HYATT REGENCY WASHINGTON WASHINGTON, DC PLAN TO ATTEND! Join ARA as we meet with your representa ? tives on Capitol Hill, to ensure? they under stand your business, your challenges, and the position you want them to take ? on im portant legislation coming before them. When you talk, they listen! ONLINE REPUTATION iStock.com/Alex Belomlinsky Your Online Reputation 44 Automotive Recycling | March-April 2014 And Your Bottom Line They are more connected than you think. BY DUSTY DUNKLE B y now, you’ve realized that your business is on full display – 24/7 – online. Forward-thinking businesses capitalize on increased revenue from a positive online reputation. Who’s peeking in your large online storefront window, and how much does this really impact your bottom line? Over 150 million people are now familiar with musician Dave Carroll’s story. As his touring band was on a layover in Chicago, he actually saw the baggage handlers roughing up the luggage, including his $2,500 guitar. Sure enough, they broke his guitar to pieces. The fact that United Airlines would not compensate him for his broken guitar, after nearly a year of trying, is where this story really takes off. Dave promised the last representative he spoke with that he and his band would tell the world about his experience. Soon Dave fulfilled his promise and his song -- “United Breaks Guitars” – went viral on YouTube. By the end of the first week, the video was up to 2.5 million views. In the first four days, the stock price of United dropped 10%, costing shareholders $180 million. This video now has over 13.5 million views. In addition, Dave’s added two more videos, wrote his first book, and is currently speaking globally. The book is titled The Power of One Voice in the Age of Social Media, and that sums it up nicely. Dave’s story is one of the best examples of how one individual’s voice can be louder than an actual brand (a very large brand at that). This was, and still is, an ugly situation for United. However, consumers are not going to completely abandon this airline as a result of Dave’s story. It takes a series of similar incidents, in most cases, to affect a brand permanently. Marshall Goldsmith, business author and speaker, says it well: “Reputations are formed by a sequence of actions that resemble one another. When other people see a pattern of resemblance in your behavior, that’s when they start formulating your reputation. A negative reputation is rarely formed due to a onetime catastrophic event.” It’s never been more important to keep customers satisfied and to address any problems as soon as they occur. You’ve seen the statistics on how one upset customer tells a certain number of others of their dissatisfaction. Harvard Business Review took this a step further. According to their study, when a customer is dissatisfied and nothing is done to resolve their problem, that person tells 14 people, on average, how unhappy March-April 2014 | Automotive Recycling 45 ONLINE REPUTATION iStock.com/iconeer Millennials value the opinions of others. They feel that a company’s expression is muted by the assumption of self-interest and marketing intent. An individual’s rant carries far more power. he or she is. If the business just listens to the problem without taking any action to resolve it, they will only tell 7 people of their dissatisfaction. If the business listens and unsuccessfully attempts to solve the problem, they tell no one of their dissatisfaction. And finally, if the business listens and actively solves the customer's problem, they will tell 5 people how effective they were. This compares favorably even with the clients who never had a problem in the first place, who only tell 3 people on average how happy they are with a good service experience! This is all great information, but the study results were published before the age of social media. These numbers should now be multiplied several times over. Today, “the ants have megaphones.” Through Dave’s story, we learned that one customer has the ability to tell millions of people of their dissatisfaction, in a very short period of time. Word-of-mouth has taken on a completely different meaning (think “word of mouse”). The exponential growth and impact of social media is nothing short of stunning. Take a look at these statistics: • There are over 1 trillion Google searches per year • 6 billion hours of YouTube are watched each month (50% more than last year) • 100 hours of video are uploaded to YouTube every minute • YouTube is the second largest search engine in the world 46 Automotive Recycling | March-April 2014 • There are over 1 billion Facebook users (the average user has 200 friends) • There are over 225 million LinkedIn users (a new user joins every second) • There are over 200 million blogs • 1 billion Tweets are sent every 5 days (the average user has 30 followers) • 55 million Twitter users log in from their phone every month Disclaimer: these facts will be completely outdated within days of this publication. The experience you deliver to your customers every day, through every transaction, either builds value for your brand or destroys it. We no longer control our own brand, we share our brand with customers. I’ve been in my business for 22 years, and it does seem like things used to be a heck of a lot easier. We didn’t need to worry about customers doing what Dave Carroll did. WE controlled our brand and what was said about our brand. Who’s behind this madness? Enter Generation Y. Who are these “Millennials”? They are Justin Bieber, who has over 46 million Twitter followers. They are Lady Gaga, who has over 60 million Facebook likes. Did I mention madness? Gen Y is 80 million members strong, and they value transparency. They were born into the digital age and are experts at deflecting the thousands of marketing messages that strike us daily. Unfortunately, they are often not buying into what we are selling. Only 14% of consumers trust advertising, according to a study conducted by National Automobile Dealers Association (NADA) University. The same study found what they do trust (at 78%), is recommendations from their peers. As business owners, we’re all marketing the fact that we’re the best. Unfortunately, the Millennials don’t really care to hear what we have to say. They don’t learn about our business through the traditional process. Instead, they value the opinions of others. They feel that a company’s expression is muted by the assumption of self-interest and marketing intent. An individual’s rant carries far more power. According to Alterian (a supplier of content management systems): • 54% of consumers sampled felt that “companies are only interested in selling products and services to me, not necessarily the product or service that is right for me.” • Only 10% trust companies to “always act in [my] best interest.” • Only 6% trust “what the company says about itself.” According to Nielsen (a global information and measurement company): • Online consumer reviews are the second most trusted form of advertising at 70% trusting the platform, an increase of 15% in 4 years. (The most trusted form of advertising, at 92%, is recommendations from friends and family.) • Only 58% of global online consumers trust “owned media,” such as messages on company websites. The emerging Generation Y wants “earned media” and they will get it. They want ratings and reviews. This is why online ratings and reviews are everywhere, and they will continue to trend up in popularity. Did you know that 92% of your potential customers research businesses online before actually going to the business (BIGresearch)? That 65% of shoppers use reviews “always” or “most of the time” before making a decision to buy (The E-Tailing Group, Inc.)? There’s more! • 84% of Americans say online evaluations have an influence on their decision to purchase a product or service (Opinion Research Corporation). • 80% of consumers have changed their minds about purchasing a recommended product or service based solely on negative information they found online (Cone Inc.). • 10.3% are less likely to purchase from a business with no reviews (emarketer.com). We know that consumers are seeking ratings and reviews, and this information plays a large role in influencing purchasing decisions. So what’s your reputation? Let’s start with the Google Search Engine Results Page (SERP). Google is by far the most frequently used search engine, accounting for over 65% of all online search. Yahoo and Bing each account for approximately 15%. When you Google the name of your business, do you like what you see? Consumers rarely look past the first page of search results. Do you look great on this first page? How many review sites are there? What are their star ratings? Diving deeper, analyze “Google Suggest.” This is Google’s attempt at completing your search phrase, as you type it. It’s a great tool that provides insight as to what people are looking for online. Type the name of your business one letter at a time, and see how Google Suggest completes your phrase. We’ve recognized over years of watching closely that more and more consumers are specifically searching for reviews on specific businesses (e.g., ABC Auto Parts Reviews). Next, type your business name along with “reviews” at the end in order to capture more review sites on your business. Do you like what you see? Keep in mind that an impression is created before anyone even reads an actual review. The images of the Google stars jump off the page and often create the decision moment-of-truth for your prospects. Understand that having no online reputation – no reviews – is a negative. This makes your business look small, and does not give consumers the information and security they need to engage with you. It’s easy for them to find another business with a good reputation. Online reputation impacts nearly all businesses. Certain businesses in the automotive industry, like franchised auto dealers, put a large amount of emphasis on online reputation and social media strategies. Collision centers and service centers are moving in that direction nicely. The industry leaders make these strategies a fundamental part of their day-to-day operations. Other industries are just getting started, and everyone will be there soon. I’ve referred to online reputation often, but understand that today your “online” reputation IS your reputation. Not participating doesn’t make people stop talking about you. It just means you aren’t part of the conversation. ■ Stay tuned for another article on Online Reputation in the next issue of Automotive Recycling. Dusty Dunkle is President of Customer Research, Inc. (CRI), and is the co-founder and Vice-President of SureCritic. Dusty graduated from Washington State University, and then joined CRI in 1992. He evolved CRI, a regional company with a single service offering, into an international multi-channel marketing company specializing in customer loyalty and customer satisfaction measurement services. CRI currently serves thousands of clients. Dusty also co-founded SureCritic, a corporation that offers a comprehensive reputation enhancement and social sharing platform, by applying this knowledge and experience in the current social media space. SureCritic currently serves over 3000 automotive businesses. To learn more about CRI and SureCritic services, contact Dusty Dunkle at 800-886-3472 X502, by email at DDunkle@CustomerResearch.com, or visit www.CustomerResearch.com. March-April 2014 | Automotive Recycling 47 SPOTLIGHT ON EXCELLENCE Central Auto Parts Five Basic Practices Five things have kept this family-owned business thriving. B Y LY N N N O V E L L I The Central Auto support team. Front row, left to right: Jacob Hall, Geoff Hall, Cathy Simon, and Paul Simon. Back row, left to right: James Walton, Josh Tysco, and Phil Vescio. 48 Automotive Recycling | March-April 2014 S tay static and you’re doomed” is a business philosophy that has taken Central Auto Recycling, Syracuse, N.Y., from a 1930s-era junkyard to a 21st century, state-of-the-art, Certified Auto Recycler (CAR), ARA Gold Seal automotive recycling facility. The family-owned business has seen its share of changes over the years, says Central Auto President, Joe Simon. The Eden network, the establishment of trading partnerships, the IT revolution in automotive recycling, the rise of e-Bay and online auctions are all part of Central Auto’s history that shaped it into the business it is today. Joe says, “Being early adopters of new technology and advances in the [auto recycling] industry has been key to how we grew.” The business was established in the early 1930s as Central City Used Parts, an early auto recycler serving local retail customers and garages. With two locations, including one situated in what grew to be Syracuse’s downtown, Central City Used Auto Parts was in business for almost 50 years. Raised in Detroit, Michigan. where their father was stationed as an FBI agent, Joe, his brother, Paul, and sister, Cathy, grew up surrounded by cars and immersed in the auto industry. When their father was selected as Special Agent in charge at the Syracuse FBI station, the family relocated. Joe graduated from LeMoyne College with a degree in labor relations and went to work for Central City Used Auto Parts in 1980. “Growing up in Detroit, we all loved cars, and my father and I would tinker with our own cars. When we moved to Syracuse, we would go to Central City for parts,” Simon recalls. “Going to work in the [recycling] industry was a logical step that I took and never looked back.” Three years later, in 1983, owners were consolidating and divested the downtown branch to a local business entrepreneur who renamed the business, Central Auto Recycling, Inc. In 1987, the Simon family and Joe’s wife’s family purchased the business from him. They have been working together now for 27 years, and are still happy with their decision. “Working together as a family has more ups than downs,” Simon notes. “It’s a good situation – you have your own way of looking at an issue or problem and another person in the family sees it a different way. That’s a positive when you are making decisions.” Today, in addition to Joe, the full-time staff incudes his sister, Cathy; his brother, Paul; Joe’s son, Joey and Joe’s father, Norm. Now 87, Norm still comes in every day to hang out. Central Auto’s customer base has shifted over the years, and the company is now primarily wholesale. As cars increased in complexity and the retail business decreased, professional repair shops in the area March-April 2014 | Automotive Recycling 49 SPOTLIGHT ON EXCELLENCE that kept up with technology became Central Auto’s customers, contributing to the recycler’s early growth. Through every expansion, the Simon family has stayed focused on five basic principles. Invest in Your Business Urban renewal in downtown Syracuse forced the business to relocate in 1988. Central Auto moved to its present 1.5 acre location, site of a former truck service and salvage operation. The Simons outfitted their warehouse with pallet shelving purchased from a furniture company that had folded. Simon recalls being unsure at the time about sinking that much money into shelving, but his father persuaded him. “He told me I would never regret Central Auto’s IT guy, Joey Simon, chief making that investment in the business, and he was information officer. right,“ Simon says. Those original racks are still in use. Investing in the EDEN network when it was introholds Bachelor’s and Master’s degrees in informaduced in the early 1990s was another big step for tion management, but “having people who are willCentral Auto. “I remember wondering if it was worth ing to embrace new technology is essential,” he the investment,” he recalls. stresses. The family quickly realized that the answer to that question was yes. EDEN opened previously unSet Your Standards High tapped markets for Central Auto, Simon says, proFrom their first day in the auto recycling business, pelling the business from the the Simon family has been regional market to a national focused on quality in every “Being early adopters of new one. aspect of their operation. The Central Auto was one of the technology and advances in the company has established a first yards to adopt computerreputation regionally and [auto recycling] industry has ized inventory, add eBay as a nationally for high quality been key to how we grew.” marketing channel and – products at a fair price, Simon most recently – transition to a says. primarily wireless infrastrucThat reputation is built one ture that covers the yard and all buildings. It helps vehicle and one part at a time by careful attention to that Simon’s chief information officer, his son Joey, every detail. “We have one of our team looking at every part every step of the way,” Simon explains. All parts must comply with ARA Gold Seal standards, and if a discrepancy is identified, the Central Auto rep calls the customer immediately. Listen to Your Customers Central Auto’s Best Practices www.centralautorecycling.com • Be an early adopter. • Invest in your business where it will ease the burdens of time and cost. • Set high standards and hold people accountable. • Listen to what your customers are saying. • Hire smart. • Participate in state and national trade associations. 50 Automotive Recycling | March-April 2014 “The shops we work with know us and trust us and give us good referrals. That’s worth its weight in gold.” Cultivating positive customer relationships, based on meeting expectations such as on-time deliveries; complete, correct orders and prompt, accurate invoicing, is another tactic for maintaining a quality product, Simon says. “The garages we work with give us their feedback and we pass tips back and forth with them,” he says. Those information exchanges become an informal quality control program. This guiding principal touches on virtually every aspect of Central Auto’s business, from purchasing to hiring. Simon takes every encounter with customers as an opportunity to learn, teach or do both, he says. “They have a need and you are helping them meet it while you are learning more about them,” he explains. “The exchange of information is critical to your success. You miss out if you don’t listen.” Central Auto relies on its yard management reports to plan salvage purchases. “But the most important question in making a buying decision is whether what we buy will meet our customers’’ needs,” Simon notes. The only way to know that or sure is to listen to them, he adds. Hire Smart Ultimately, the automotive recycling business is all about relationships, Simon believes. With customers, employees, other recyclers, dealerships – build solid relationships and you’ll build your business. For example, Simons says, “The shops we work with know us and trust us and give us good referrals. That’s worth its weight in gold.” With five family members in a company with a total of nine employees, Simon doesn’t have to do a lot of hiring, but when he does he is selective. “We can teach people job skills,” he explains. “What’s more important is finding someone with the right attitude.” That includes someone who is flexible, a team March-April 2014 | Automotive Recycling 51 SPOTLIGHT ON EXCELLENCE “The connections you make through [your state and national trade] organizations are invaluable.” effective. “We have been fortunate in finding good people and enjoy watching them grow,” Simon says. His top tip for hiring: “Hire people who are smarter than you are, and it will improve your game.” Participate in Your Trade Organizations player who also can work independently, dedicated to quality and willing to work hard. He prefers to find people through networking rather than running an ad online or posted on a local bulletin board, and so far this strategy has been A long-time member of the Automotive Recyclers Association of New York (ARANY) and ARA, Central Auto has benefitted tremendously from actively participating in both, Simon says. In 2011 he was ARANY president and currently is chair of the state association’s Workers’ Comp Captive Insurance Program. Through ARA, Central Auto has achieved ARA Gold Seal certification and is recognized through the association’s CAR program, two distinctions that let customers know that Central Auto’s focus is on quality. “I always bring something worthwhile away from state or national association meeting,” Simon says. Fellow recyclers are friends, not competitors, who are willing to share their best practices. “The connections you make through these organizations are invaluable.” ■ Lynn Novelli is a freelance writer based in Ohio. 52 Automotive Recycling | March-April 2014 THANK YOU To Our Sponsors! March-April 2014 | Automotive Recycling 53 March-April 2014 | Automotive Recycling 55 56 Automotive Recycling | March-April 2014 March-April 2014 | Automotive Recycling 57 2013 CONVENTION SPONSORS Diamond Sponsors Platinum Sponsors Gold Sponsors Silver Sponsors Bronze Sponsor Associate Sponsors General Sponsors March-April 2014 | Automotive Recycling 59 60 Automotive Recycling | March-April 2014 Sponsorships Now Available for 2014! SAVE THE DATE March-April 2014 | Automotive Recycling 61 ARA SCHOLARSHIPS Academic Year 2013-2014 ARA Scholarship Foundation Recipients T he ARA Scholarship Foundation, Inc. is a non-profit organization whose purpose is to promote education through the awarding of scholarships. Monies are available to ARA members’ employee’s children for post-high school educational pursuits. These scholarships are funded through contributions from people like you, who care about the future of our children, as well as money raised at events. Each year, many generous contributors help the Foundation achieve its goals. The funds help more students achieve their dream – gaining a college education. We appreciate all of you who generously contributed to this effort. Now, how can you help? Why not send a donation today? You can even sponsor a named scholarship! Those wanting to make a donation of $1,000 at one time may name a scholarship for one year. For $10,000 a permanent scholarship may be named. A donor may name such scholarships in honor or memory of anyone they wish. Contributions are tax-deductible and may be made by cash, check, MasterCard, Visa, or American Express. The deadline to apply for a scholarship for the next academic year is drawing near. Eligible applicants, who must be a child of an employee of a direct ARA member company, need to complete and submit a scholarship application by March 15, 2014. The scholarships are awarded based on scholastic achievement. Download an application from the ARA Web site at www.a-r-a.org or contact Kelly Badillo directly at (571) 208-0428 or kelly@a-r-a.org to receive an application by mail or e-mail. 62 Automotive Recycling | March-April 2014 G.M. VENEKLASEN MEMORIAL SCHOLARSHIP Brad Bartels, Grand Valley State University, Allendale, MI Member: LKQ Veneklasen Auto Parts, Holland, MI Parent: Brian Bartels AL-JON SCHOLARSHIP Makayla Braaten, University of South Dakota, Vermillion, SD Member: Nordstom's Automotive, Inc., Garretson, SD Parent: Tim Braaten CLAUDE A. MILLER, JR. MEMORIAL SCHOLARSHIP Casey Carpenter, University of Missouri, Columbia, MO Member: LKQ Mid-America Auto Parts, Topeka, KS Parent: Kevin Carpenter FRANK NICASTRI MEMORIAL SCHOLARSHIP Harley Dissinger, Wayne Community College, Goldsboro, NC Member: Wayne Auto Salvage, Goldsboro, NC Parent: Greg Dissinger KATIE & ALEX LIEBERMAN FAMILY MEMORIAL SCHOLARSHIP Nicole Dutton, Western New England University, Springfield, MA Member: Sylvia's Auto Parts, Inc., South Dartmouth, MA Parent: Sharon Dutton LKQ CORP. SCHOLARSHIP Daniel Eckel, University of Illinois at Urbana-Champaign, Champaign, IL Member: LKQ Corporation, Chicago, IL Parent: Stephen Eckel JOSEPH ALTFATER MEMORIAL SCHOLARSHIP Sarah Eich, Dakota State University, Madison, SD Member: Vander Haag's, Inc., Sioux Falls, SD Parent: Jerry Schroeder WANDA LINDEMAN MEMORIAL SCHOLARSHIP Logan Carroll, Blackhawk Technical School, Janesville, WI Member: LKQ Star Auto Parts, Janesville, WI Parent: Matt Carroll SANDY ANDERSEN MEMORIAL SCHOLARSHIP Joseph Fenoglio, Kansas State University, Manhattan, KS Member: LKQ Colorado, Denver, CO Parent: Shawn Fenoglio DAVID AUTRY MEMORIAL SCHOLARSHIP Kasey Content, University of Tennessee, Knoxville, TN Member: LKQ Corporation, LaVergne, TN Parent: Anne Bailey HARRY RUBIN MEMORIAL SCHOLARSHIP Daniel Folino, Central Connecticut State University, New Britain, CT Member: LKQ Corporation, Manchester, CT Parent: Paul Folino DON COWELL HONORIAL SCHOLARSHIP Danielle Gaw, Columbia College, Columbia, MO Member: JC Auto & Truck Parts, Monroe City, MO Parent: Brian Dean NAN TODER MEMORIAL SCHOLARSHIP Nikole Komand, Alvernia University, Reading, PA Member: Chuck's Auto Salvage, Inc., Douglasville, PA Parent: James Komand JOHN VANDER HAAG HONORIAL SCHOLARSHIP Alyssa Gee, University of South Dakota, Vermillion, SD Member: Vander Haag's, Inc., Spencer, IA Parent: Tricia Gee DON & CAROL PHELPS HONORIAL SCHOLARSHIP Ashley LaFrance, Eastern Washington University, Cheney, WA Member: Spalding Auto Parts, Spokane, WA Parent: Glen LaFrance ELVIS MUNTZ MEMORIAL SCHOLARSHIP Austin Harrell, University of Arkansas Community College, Morrilton, AR Member: LKQ Preferred Auto Parts, Conway, AR Parent: Michael Harrell SKIP WELLER HONORIAL SCHOLARSHIP Justin Louck, Muskegon Community College, Muskegon, MI Member: Weller Auto Parts, Grand Rapids, MI Parent: Roger Louck STEVE WATERBURY MEMORIAL SCHOLARSHIP Emily Heuver, University of Maryland, College Park, MD Member: LKQ Potomac German Auto, Frederick, MD Parent: Marcel Heuver CAROL PHELPS MEMORIAL SCHOLARSHIP Harlen McKennett, North Idaho College, Coeur d'Alene, ID Member: Spalding Auto Parts, Spokane, WA Parent: Patrick McKennett ASHLEY GEIGER MEMORIAL SCHOLARSHIP Jessica Johnson, Eastern Illinois University, Charleston, Il Member: Mack’s Auto Recycling, Urbana, IL Parent: Sherri Johnson DONALD E. & BERNICE L. BEAGELL MEMORIAL SCHOLARSHIP Amanda Meade, Rochester Institute of Technology, Rochester, NY Member: Don's Automotive Mall, Inc., Binghamton, NY Parent: Brian Meade BO WROTEN HONORIAL SCHOLARSHIP Christian Jones, Southeastern University, Lakeland, FL Member: Brandon Auto Salvage, Valrico, FL Parent: Thomas Ross MARK T. SPEARS HONORIAL SCHOLARSHIP Samantha Miller, Anna Maria College, Paxton, MA Member: LKQ Route 16 Used Auto Parts, Webster, MA Parent: Ronnie Miller JOHN ANSPACH MEMORIAL SCHOLARSHIP Melissa Komand, Albright College, Reading, PA Member: Chuck's Auto Salvage, Inc., Douglasville, PA Parent: James Komand SUSAN WEAVER HONORIAL SCHOLARSHIP Victoria Morrone, Georgia Southern University, Statesboro, GA Member: Weaver Automotive, Carnesville, GA Parent: Joseph Morrone CAR-PART.COM Rachel Murrin, University of Louisville, Louisville, KY Member: Bessler Import Auto Sales, Wilder, KY Parent: Thomas Murrin RICHARD J. CASSIDY MEMORIAL SCHOLARSHIP Brittany Nampel, University of Wisconsin-Platteville, Platteville, WI Member: LKQ Smart Parts, Inc., Hustisford, WI Parent: Russell Nampel LINDA PITMAN HONORIAL SCHOLARSHIP Vanessa Nguyen, University of Central Florida, Orlando, FL Member: Green Star Auto Recyclers, Orlando, FL Parent: Bic Vu SOL & LIN TODER HONORIAL SCHOLARSHIP Mariah Odom, University of South Carolina - Upstate, Spartanburg, SC Member: LKQ A&R Auto Parts, Duncan, SC Parent: Michael Odom BRANDY MASON MEMORIAL SCHOLARSHIP Garrett Patterson, Ohio State University, Columbus, OH Member: LKQ Corporation, Nashville, TN Parent: Jack Patterson GERALD C. SHEFTEL MEMORIAL SCHOLARSHIP Jordan Rackley, Valdosta State University, Valdosta, GA Member: Capital Auto Parts, Inc., Thomasville, GA Parent: Mark Rackley TERRY GRAY HONORIAL SCHOLARSHIP Breeanna Ramirez, Pepperdine University, Malibu, CA Member: LKQ Corporation, Santa Fe Springs, CA Parent: Veronica Ramirez MARY BUESSING & ROSE KELLY MEMORIAL SCHOLARSHIP Geoffrey Riggs, Jr., Arizona State University, Tempe, AZ Member: LKQ All Models Corporation, Phoenix, AZ Parent: Geoffrey Riggs DICK & DOROTHY MERRELL HONORIAL SCHOLARSHIP Taylor Rondeau, University of New England, Biddeford, ME Member: Nationwide Auto Recycling, Lancaster, MA Parent: Kevin Rondeau STUART SPITZ HONORIAL SCHOLARSHIP Meredith Rudasill, University of South Carolina-Upstate, Spartanburg, SC Member: LKQ A&R Auto Parts, Duncan, SC Parent: Tamela Rudasill NORMAN DULANEY MEMORIAL SCHOLARSHIP Jonathan Shockey, Lone Star College, Woodlands, TX Member: LKQ Auto Parts of South Texas, Houston, TX Parent: Jeffrey Shockey MARK T. SPEARS HONORIAL SCHOLARSHIP Alex Smith, Minnesota State University, Mankato, Mankato, MN Member: LKQ John's Auto Parts, Blaine, MN Parent: William Smith NEW YORK ASSN. OF AUTO DISMANTLERS SCHOLARSHIP Justice Spear, Syracuse University, Syracuse, NY Member: Jerry Brown's Auto Parts, Queensbury, NY Parent: Lawrence Spear KEN VONHOF MEMORIAL SCHOLARSHIP Renee Stone, University of Central Missouri, Warrensburg, MO Member: JC Auto & Truck Parts, Monroe City, MO Parent: Ricky Stone March-April 2014 | Automotive Recycling 63 DONALD ROUSE HONORIAL SCHOLARSHIP Shaina Streeter, Northwestern Michigan College, Traverse City, MI Member: East Bay Auto Parts, Interlochen, MI Parent: Kimberly Streeter RUBY GRIGGERS MEMORIAL SCHOLARSHIP Joseph Thomas, University of Georgia, Athens, GA Member: Weaver Automotive, Carnesville, GA Parent: Mickey Thomas BILL WEAVER HONORIAL SCHOLARSHIP Caleb Swinson, Appalachian State University, Boone, NC Member: Foil's Automotive Recycling, Harrisburg, NC Parent: Timothy Swinson SOUTHERN ONTARIO AUTO RECYCLERS ASSOCIATION (SOAR) Alanna Ticknor, Royal Canadian College of Massage Therapy, Toronto, ON Canada Member: Standard Auto Wreckers, Scarborough, ON Canada Parent: Ian Ticknor KENNY HUBBARD HONORIAL SCHOLARSHIP Amber Swogger, St. Louis College of Pharmacy, St. Louis, MO Member: LKQ Metro #560, Caseyville, IL Parent: Malcolm Swogger HARRY M. WELLER HONORIAL SCHOLARSHIP Alyssa Taylor, University of Central Missouri, Warrensburg, MO Member: County Line Auto Parts, Kingsville, MO Parent: Gary Taylor 64 Automotive Recycling | March-April 2014 VIRGINIA WHELAN HONORIAL SCHOLARSHIP Stephanie Venditto, Syracuse University, Syracuse, NY Member: Saw Mill Auto Wreckers, Yonkers, NY Parent: Michael Venditto EDYTH CLELAND MEMORIAL SCHOLARSHIP Lori Waters, University of South Carolina, Columbia, SC Member: Blue & Gold Auto Storage, Goose Creek, SC Parent: Barbara Waters MAKE A DIFFERENCE! SEND YOUR CONTRIBUTION TO THE ARA SCHOLARSHIP FUND Mail to: ARA Scholarship Foundation, 9113 Church Street, Manassas, VA 20110-5456. Donations are accepted in the form of check, MasterCard, Visa, or American Express. Name: ______________________________________________________________________________ Address: ____________________________________________________________________________ Address: ____________________________________________________________________________ Amount of Donation: ________________________________________________________________ Check one: ❏ Check ❏ MasterCard ❏ Visa ❏ American Express Name on Card: ______________________________________________________________________ Credit Card #:________________________________________________________________________ Expiration Date:________________________________Card Security Code: ____________________ Certified News Approved Gold Seal Participants A & P Auto Parts, Inc. A-1 Auto Recyclers AAA Auto Salvage, Inc. ABC Auto Parts & Sales, Inc. Albuquerque Foreign Auto Parts Algar, Inc. dba Grade A Auto Parts All Auto Parts Co. All Foreign & Domestic Used Auto Parts, Inc. Al’s Auto Parts, Inc. American and Import Auto Parts American Auto Recycling Automotive Parts Solutions B & B Auto Parts & Salvage, Inc. B & B Auto Salvage, Inc. - PRP B & M Auto Sales & Parts, Inc. B & R Auto Wrecking B Auto Parts Badger Motors Baird’s Auto Parts, Inc. Bay Auto Parts Bessler Auto Parts Bionic Auto Parts & Sales, Inc. Bishop’s Used Auto Parts, Inc. Blenkhorn’s Auto Recyclers, Ltd. Bow Auto Salvage, Inc. Brothers Auto Salvage Yard, Inc. Brown’s Auto Salvage Butler Auto Recycling, Inc. BW Auto Dismantlers, Inc. C & H Salvage Corp. Calumet Auto Salvage, Inc. Carcone’s Auto Recycling Central Auto Recycling, Inc. Centre De Recyclage Universel (1981) Ltee. Chuck’s Auto Salvage, Inc. Cocoa Auto Salvage, Inc. Columbia Auto Parts County Line Auto Parts Cousineau Auto Parts, Inc. D. A. Auto Parts, Ltd. Decatur Auto Parts, Inc. Denton County Auto Salvage Diamond Auto Parts Don’s Automotive Mall, Inc. Eiss Brothers Auto Parts, Inc. Elmer’s Auto, Inc. Erie Vo-Vo, Inc. Foreign Auto Salvage Fox Auto Parts, Inc. G & R Auto Parts, Inc. Goyette’s, Inc. Grassy Auto Parts, Inc. Grimes Truck & Auto Parts, LLC H & H Auto Parts & Salvage, Inc. Hanser’s Automotive & Wrecker Company Hickman Motors, Inc. Highway 54 Salvage, Inc. J & R Truck Parts J.C. Auto & Truck Parts Jantz’s Yard 4 Automotive, Inc. Jerry Brown Auto Parts Center, Ltd. Jerry Carney & Sons, Inc. Junior Sinn Auto Parts, LLC Kadinger’s II Kadinger’s, Inc. Kadinger’s, Inc. Kelly Auto Parts Kirchhayn Auto Salvage, Inc. Kosiski Auto Parts, Inc. Lacy Auto Parts, Inc. LKQ Advanced Auto Recycling Cicero Rapid City Rosemount Riverdale Albuquerque Louisville Fontana Columbus Trevose Sterling Heights Gilbert St. Cloud Oklahoma City Rapid City Waukesha Corvallis East St. Louis Wisconsin Rapids Fairdale Green Bay Wilder Chicago Middletown Brookside Bow Indianapolis Bomoseen Pensacola Roseville Campbell Hall Milwaukee Aurora Syracuse Val D’Or Douglassville Cocoa W. Columbia Kingsville Weston Dumfries, Decatur Denton Fond Du Lac Binghamton Watertown Fountain City Whitesboro Ft. Wright Belleville Oklahoma City New Bedford West Liberty Grand Prairie Sussex Billings Hickman Trenton Cedar Springs Monroe City Kenosha Queensbury Ames Cape Girardeau Barron Cadott Downing Faribault Cedarburg Omaha Charles City Cumberland NY SD MN IL NM KY CA OH PA MI AZ MN OK SD WI OR IL WI KY WI KY IL CT NS, CAN NH IN VT FL CA NY WI ON, CAN NY QC, CAN PA FL SC MO WI GBR IL TX WI NY NY WI NY KY MI OK MA KY TX WI MT KY TN MI MO WI NY IA MO WI WI WI MN WI NE VA RI LKQ Auto Parts of Central Texas LKQ Auto Parts of North Texas, LP LKQ Auto Parts of South Texas LKQ Canadian Auto Parts Inc. - Ste. Sophie LKQ Four States LKQ John’s Auto Parts LKQ Midwest Auto Parts LKQ of Michigan, Inc. LKQ of Nevada, Inc. LKQ of New Mexico LKQ of Southern California LKQ Pick Your Part/Car World LKQ Potomac German Auto LKQ Preferred LKQ Smart Parts, Inc. LKQ Star Auto Parts, Inc. LKQ Triplett ASAP, Inc. LKQ Viking Auto Salvage LKQ West Michigan Logel’s Auto Parts M & M Auto Parts, Inc. Metro Auto Recyclers Midway Auto Parts, Inc. Miller’s Auto Recycling (1992), Ltd. Mitchells Auto Parts dba Chuck & Eddies Used Auto Parts Morris Rose Auto Parts, Inc. Morrisons Auto, Inc. Mott Auto, Inc. Mr. R’s Auto Salvage Nordstrom’s Automotive, Inc. Northwest Auto Parts Olston’s Auto Recyclers Pam’s Auto, Inc. Parts Unlimited, Inc. Peacock Auto Salvage, Inc. Pete’s Auto & Truck Parts, Inc. Remington Auto Salvage, Inc. Rhine Auto, Inc. Rhodes Auto S/S/S, Inc. Ridge Road Auto Parts Riteway Auto Parts, Inc. Robertson’s Auto Salvage, Inc. Rockford Auto Parts, Inc. Sandhill Auto Salvage, LLC Schram Auto Parts Sharp Auto Parts, LLC Shroyer’s Auto Parts Snyder’s Recycled Auto and Truck Parts Sonshine Auto Parts Spalding Auto Parts, Inc. Speedway Auto, Ltd. St. James Auto & Truck Parts, LLC Stadium Auto & Truck Parts, Inc. Stafford’s, Inc. Standard Auto Wreckers Stoystown Auto Wreckers Stricker Brothers, Inc. Tolpa’s Auto Parts Tom’s Foreign Auto Parts Toomer Enterprises, LLC dba Doggett Auto Parts Trails End Auto and Truck Salvage, Inc. Walt’s Auto, Inc. Waterloo Auto Parts, Inc. Wayne Auto Salvage, Inc. Weller Auto Parts, Inc. West Side Auto Parts, Inc. Wilbert’s, Inc. Woodfin Honda / Pick and Save Yancey Auto Salvage Y-Yard Auto & Truck, Inc. New Braunfels Hutchins Houston Ste. Sophie Joplin Blaine Omaha Wayne North Las Vegas Albuquerque Santa Fe Springs Candia Frederick Conway Hustisford Janesville Akron Northfield Holland Kitchener Stafford Valparaiso Kansas City Fort Erie TX TX TX QC, CAN MO MN NE MI NV NM CA NH MD AR WI WI OH MN MI ON, CAN VA IN MO ON, CAN Plantsville Kalamazoo Edgerton Lebanon Buffalo Garretson Anchorage Lincoln St. Cloud Pearland Macon Jenison Eau Claire Plymouth Streator Cleveland Phoenix Wareham Rockford Tama Waterford Stillwater Lansing Holland Cumberland Spokane Joliet St. James Denver Montgomery Toronto Stoystown Batavia Remsen Waterbury Bryan Des Moines Springfield Waterloo Goldsboro Grand Rapids Laurel Webster Midlothian Perry Effingham CT MI WI MO WY SD AK NE MN TX GA MI WI WI IL OH AZ MA IL IA MI MN MI TX ON, CAN WA IL MO CO IL ON, CAN PA OH NY CT TX IA OH IA NC MI DE NY VA MO IL March-April 2014 | Automotive Recycling 65 Certified News Approved CAR Participants 43 Auto Salvage A & A Auto and Truck Parts, Inc A & A Auto and Truck Parts, Inc. (North) A & C Auto Parts & Wrecking Co. A & L Auto Recyclers, Inc. AAAACO Auto Parts, Inc. AADCO Auto Parts Aadlen Bros Auto Wrecking Ace Auto Recyclers, Inc. Action Auto Parts, Inc. All Car & Truck Recycling All Foreign Used Auto Parts, Inc. Alliance Auto Parts Allwest Auto Parts, Inc. Alvin’s Automotive Recycling American Auto Parts Arnprior and Ottawa Auto Parts Auto Parts City, Inc. B & B Towing & Auto Recycling B & M Cars & Salvage Bauer’s Auto Wrecking Bell City Auto Center, Inc. Bill’s Used Parts, Inc. Black Gold Import Auto Parts Borges Foreign Auto Parts, Inc. Bowie Used Auto Parts, Inc. Brandywine Auto Parts, Inc. Brandywine Truck Parts Brandywine Two, Inc. Brooks Auto Sales, Inc. Bruce Auto Parts, Inc. Cambridge Auto Parts and Wreckers Company, Ltd. Camp Auto Salvage Canadian Auto Recycling Cash n Carry Pull-Your-Part Central Small Car Salvage Central Truxx Clayton Auto Parts & Wrecking, Inc. Colorado Auto & Parts, Inc. Compact Auto Parts Cookstown Auto Centre, Ltd. Cosmos Ocean County Recycled Auto Parts Cosner Brothers Auto Parts, Inc. Counselman Automotive Recycling, LLC Cousineau Auto, Inc. Covey’s Auto Recyclers, Ltd. Danny’s Auto Salvage, Inc. Denison Auto Parts, Inc. D-N-J Auto Parts Dom’s Auto Parts Co., Ltd. Don Scharf Automotive, Inc. Doug’s Auto Recyclers, Inc. Dulaney Auto and Truck Parts of Amarillo, Inc. Duval Auto Parts East Bay Auto Parts, Inc. Economy Auto Parts Eden Used Auto Parts, Inc. Ed’s Auto Salvage, Ltd. Elgin Super Auto Parts and Sales, Inc. Fireside’s U-Pull It Auto Parts Foreign Car Parts, Inc. Gary’s U-Pull-It, Inc. Geiger Truck Parts, Inc. Glenn’s Auto & Truck Parts H & H Auto Parts, LLC Harry’s Auto Wrecking Higgins Auto Parts Hillsboro Auto Wrecking Hilltop Auto Wreckers, Ltd. 66 Automotive Recycling | March-April 2014 Joplin Topeka Topeka Cleveland Comber Lorton Brampton Sun Valley Iowa City Marshalltown Anderson Fredericksburg Woodside Edmonton Oakland Omaha Arnprior Gurnee Englishtown Sulphur Springs Fresno Brantford Christiansburg Nisku Dighton Bowie Brandywine Brandywine Brandywine Oilville Mechanicsville Cambridge Barberton Mount Pearl Savannah Brandywine North Bay Clayton Englewood Brandywine Cookstown Bayville Troy Mobile Antigo Blandford Tulsa Cleveland Owensboro Courtice Eagle River Coldwater Amarillo Forest Interlochen Tulsa Eden Westlock Elgin Sandusky Upper Marlboro Binghamton Watseka Houston Cozad Grande Prairie Bakersfield Hillsboro Richmond Hill MO KS KS OH ON, CAN VA ON, CAN CA IA IA CA VA NY AB, CAN CA NE ON, CAN IL NJ TX CA ON, CAN VA AB, CAN MA MD MD MD MD VA VA ON, CAN OH NF, CAN GA MD ON, CAN OH CO MD ON, CAN NJ VA AL WI NS, CAN OK OH KY ON, CAN WI MI TX VA MI OK MD AB, CAN IL OH MD NY IL TX NE AB, CAN CA OR ON, CAN Hi-way Auto Parts Hi-Way Auto, Inc. Horsehead’s Automotive Recycling Hovis Inc. dba Patterson Auto Wrecking I-55 Auto Salvage J & J Auto Wrecking, Inc. Jeff Smid Auto, Inc. Jerry’s Auto Salvage, Inc. Keiffer Auto Recyclers Keith Auto Recyclers LLC dba KARS Kenny U-Pull Knox Auto Parts & Rebuildable Wrecks Leesville Auto Wreckers, Inc. Lems Auto Recyclers, Inc. Lentini Auto Salvage, Inc. Lewisville Motor Company, Inc. Linder’s, Inc. LKQ - Barber’s Auto Sales LKQ 250 Auto, Inc. LKQ A & R Auto Parts, Inc. LKQ A Reliable U Pull It South LKQ Arizona (aka: LKQ All Models Corp.) LKQ Atlanta, LP LKQ Barger Auto Parts Nampa LKQ Birmingham, Inc. LKQ Brad’s Auto & Truck Parts, Inc. LKQ Broadway Auto Parts, Inc. LKQ Copher Self Service Auto Parts - Bradenton, Inc. LKQ Copher Self Service Auto Parts - Clearwater, Inc. LKQ Copher Self Service Auto Parts - St. Petersburg, Inc. LKQ Copher Self Service Auto Parts - Tampa, Inc. LKQ Crystal River, Inc. LKQ Dominion Auto Recycling, Inc. LKQ Foster Auto Parts of Salem LKQ Foster Auto Parts, Inc. LKQ Gorham Auto Parts Corp. LKQ GreenLeaf - Dallas LKQ GreenLeaf - Fort Worth LKQ GreenLeaf - Kennedale LKQ GreenLeaf - Seguin LKQ Hunts Point Auto Parts Corp. LKQ M. Robert, Inc. LKQ Melbourne LKQ Mid-America Auto Parts, Inc. LKQ Minnesota, Inc. LKQ Northern California (Redding) LKQ of Central California LKQ of Ft. Myers LKQ of Indiana, Inc. LKQ of Northwest Arkansas dba LKQ Mid-America LKQ of Tennessee LKQ Penn-Mar, Inc. LKQ Pick Your Part Anaheim LKQ Pick Your Part Bakersfield LKQ Pick Your Part Chula Vista LKQ Pick Your Part Gainesville LKQ Pick Your Part Help Your Self LKQ Pick Your Part Stanton LKQ Pick Your Part Sun Valley LKQ Pick Your Part Wilmington LKQ Pintendre Autos, Inc. LKQ Potomac German LKQ Pull n Save Auto Parts of Aurora, LLC LKQ Route 16 Used Auto Parts LKQ Salisbury, Inc. LKQ Savannah, Inc. LKQ Self Service Auto Parts - Holland LKQ Self Service Auto Parts - Kalamazoo, Inc. LKQ Self Service Daytona Tyler Brownwood Elmira Cochranton Channahon Marshallville Davenport Big Lake Canton Pontotoc Laval Knoxville Rahway Doon Ringoes Winston-Salem Worcester Ardmore Harrisville Duncan Blue Island Phoenix Jenkinsburg Nampa Traffon Redmond Stuyvesant Bradenton Clearwater St. Petersburg Tampa Crystal River Stoney Creek Salem Portland Gorham Dallas Haltom City Kennedale Seguin Bronx Sainte-Madeleine Melbourne Topeka Albert Lea Redding Bakersfield Ft. Myers Plainfield Fayetteville Manchester York Haven Anaheim Bakersfield Chula Vista Gainesville Wilmington Stanton Sun Valley Wilmington Pintendre Orlando Aurora Webster Salisbury Savannah Holland Kalamazoo Daytona Beach TX TX NY PA IL OH IA MN OH MS QC, CAN TN NJ IA NJ NC MA AL OH SC IL AZ GA ID AL OR NY FL FL FL FL FL ON, CAN OR OR ME TX TX TX TX NY QC, CAN FL KS MN CA CA FL IN AR TN PA CA CA CA FL CA CA CA CA QC, CAN FL CO MA NC GA MI MI FL LKQ Self Service Memphis LKQ Utah Manuel’s Auto Wrecking Marco Auto Recycling, Inc. Maritime Auto Salvage, Ltd. Marshall Auto Wreckers, Ltd. Massey’s Auto Parts, Inc. McDill Auto Wrecking, Inc. Metro Auto Salvage, Inc. Mid Island Auto Wreckers, Inc. Middleton Auto Parts Milliron Auto Parts, Inc. Misgen Auto Parts, Inc. Newton Auto Salvage, Inc. Newville Auto Salvage, Inc. Nicklin Auto Parts and Recyclers Niks Auto Parts, Inc. Nissenbaum’s Auto Parts, Inc. North Verde Auto Salvage Novak Auto Parts, Inc. Ole South Auto Salvage, Inc. P & C Auto Wrecking, Inc. Pacific Auto Salvage, Inc. Pat’s Auto Salvage, LLC Pick-n-Pull - Cumberland Pick-n-Pull Auto Dismantlers - Calgary Pick-n-Pull Auto Dismantlers - Edmonton Pick-n-Pull Auto Dismantlers - Kelowna Poell’s Enterprises, Inc. Popow & Sons Body Shop, Ltd. Premier Auto & Truck Parts, Inc. Pull-A-Part Akron Pull-A-Part Atlanta East Pull-A-Part Atlanta North Pull-A-Part Atlanta South Pull-A-Part Augusta Pull-A-Part Baton Rouge Pull-A-Part Birmingham Pull-A-Part Canton Pull-A-Part Charlotte Pull-A-Part Cleveland I (East) Pull-A-Part Cleveland II (West) Memphis Salt Lake City Merced Red Wing Truro Lethbridge Millington Stevens Point Lakeville Deer Park Fraser Mansfield Ellendale Covington Edgerton Guelph Neenah Somerville Ontario New Brighton Lake Placid Milpitas American Canyon Waterloo Cumberland Calgary Edmonton Kelowna Dewitt Lacombe Cedar Springs Akron Lithonia Norcross Conley Augusta Baton Rouge Birmingham Canton Charlotte Cleveland Cleveland TN UT CA MN NS, CAN AB, CAN TN WI MN NY MI OH MN GA WI ON, CAN WI MA OR PA FL CA CA IA RI AB, CAN AB, CAN BC, CAN IA AB, CAN MI OH GA GA GA GA LA AL OH NC OH OH Pull-A-Part Columbia Pull-A-Part Indianapolis Pull-A-Part Jackson Pull-A-Part Knoxville Pull-A-Part Lafayette Pull-A-Part Louisville Pull-A-Part Memphis Pull-A-Part Mobile Pull-A-Part Montgomery Pull-A-Part Nashville Pull-A-Part New Orleans West Pull-A-Part Winston-Salem Ransom Motors, Inc. Reitman Auto Parts & Sales, Inc. Rhinelander Auto Salvage Ripple’s Service, Inc. Robert’s Engines, Inc. Roberts Salvage, Inc. Rock & Roll Auto Recycling Rusty Acres Automotive, Inc. Salvage GM Parts of South Georgia, Inc. School Street Light Truck Parts Schram Auto & Truck Parts Lansing, Inc. Scotty’s Auto Parts SGI Salvage Moose Jaw SGI Salvage North Battleford SGI Salvage Regina SGI Salvage Saskatoon SGI Salvage Yorkton Shipman Auto Parts, Inc. Smith Auto & Truck Parts, Inc. Smith Auto Parts & Sales, Inc. Snyder Auto Body & Paint Southern Maryland Used Auto Parts Sunscape Enterprises, Inc. dba Ace Auto Wreckers Swift’s Auto Salvage, Inc. Tri State Auto Parts Van Horn Auto Parts, Inc. Vander Haag’s, Inc. Vander Haag’s, Inc. West Auto Wreckers, Ltd. Columbia Indianapolis Jackson Knoxville Lafayette Louisville Memphis Mobile Montgomery Nashville New Orleans Winston-Salem Brandywine Melbourne Rhinelander Upper Marlboro Lucama Moffett Pleasanton Jacksonville Valdosta Lowell Mason Virginia Moose Jaw North Battleford Regina Saskatoon Yorkton Brainerd Garden City Fairfield Clarinda Mechanicsville E. Brunswick Des Moines Walls Mason City Des Moines Spencer Chula Vista SC IN MS TN LA KY TN AL AL TN LA NC MD KY WI MD NC OK CA FL GA MA MI IL SK, CAN SK, CAN SK, CAN SK, CAN SK, CAN MN KS IA IA MD NJ IA MS IA IA IA CA New CAR Application Process t is with much excitement that we announce the hot-off-the-press, Here’s how the new system will work for CAR member facilities: updated, and streamlined CAR application. The facility contact can opt to access the new application I Building on the CAR program’s past successes, it includes an audit and guidance manual on ARA’s website or receive the documents that is based on a point system under which a facility will be evaluated via e-mail. The contact should save the new application form to using a point value for each familiar CAR standard. The standards have the facility’s computing platform. It is hoped that a facility representa- been reorganized to more closely follow the auditors’ facility inspection tive will treat this form as a living document – opening it frequently sequence, but no new standards have been added. to assign points to standards and to insert the required photos/ The ARA CAR Committee, with the approval of the ARA Executive Committee, has been working on this new format and system refocus for documents. By October 1, the facility contact will complete the audit form, at- over a year with considerable input from those involved in the certifica- testing that the facility meets at least 70% of the CAR Program stan- tion pipeline including professional automotive recyclers, program audi- dards, and submit it to ARA. tors and those who are expert in the certification field. This new point system will allow for an audit that will benefit facilities involved in the program by identifying best management practices, promoting continuous improvement as well as recognizing regulatory/juris- Included in the application will be an invoice for the CAR facility’s $100 annual renewal fee. You will be able to either submit your payment with the application or ARA will send you a separate invoice. ARA and its CAR Committee look forward to working with you to dictional deficiencies. No significant long term increase of time or effort making the CAR program state of the art, electronic, interactive, user- to fulfill the requirements is expected as a result of these changes. friendly and value-oriented. March-April 2014 | Automotive Recycling 67 International Auto Recycling Standards are Universal By Andy Latham A s a pediatric nurse, my wife knows all about standards. When you are dealing with premature babies, it is essential to record everything you do – it is necessary to have controls in place to make certain that important tasks like feeding or administering drugs are completed on time and accurately – actions that go a long way towards giving these babies the opportunity to grow, develop and have a long and fulfilling life. I know that automotive recycling is not the same as a neonatal intensive care ward, however standards should be at the forefront of everything that we do, and I have recently had the pleasure of being involved in the setting of standards for the automotive recycling industry. It took almost a year, a few flights between Japan and the UK, some video conferencing at crazy hours and lots of hard work and effort, to produce a specification for the qualification and labeling of used automotive engines and any related transmission units. Sponsored by Kaiho Sangyo Co., Ltd., supported by Sun Partners Co., Ltd. and facilitated by the British Standards Institute, PAS777 (Publicly Available Specification) was recently released. Designed to provide a standard for qualification and labeling of used automotive engines and related transmission units, PAS777 gives sellers of these transmissions a robust, auditable procedure that can be used throughout the world. The PAS sets out a process for inspection of the relevant engine and related transmission unit, collation and recording of data and presentation of that data to potential customers. A number of factors are recorded, these include: • Vehicle Make, Model and Model Code 68 Automotive Recycling | March-April 2014 • Date of Registration • Distance travelled (Miles/Kilometers/Hours) • Engine Number • Fuel Type • Physical Description; and much more. One outcome of the PAS is a matrix that qualifies the engine and related transmission unit on a scale of 0-5 in a number of areas. This gives a visual representation of information that will allow very effective comparison between available units when examined together. The PAS is not intended to signify the quality of the engine and related transmission unit, but does give any potential customer enough details for them to make an informed choice. Use of PAS777 could be the difference between making or losing a sale, as companies using the specification could be perceived as more reliable as competitors not applying the specification. It was very interesting to be working with the British Standards Institute and it showed how relevant suitable standards are to a global industry such as automotive recycling. Presentations on ISO 9001 at the recent ARA Annual Convention and International Roundtable on Auto Recycling in Phoenix, reinforced that view. ISO 9001 provides significant value to many businesses worldwide. It shows that management structures are in place and that the company can be relied upon to work at a suitable standard that gives confidence to potential business partners, customers or suppliers – and it is especially important to have recognized standards in your business when dealing with government departments or agencies. Suitable standards can revolutionize any business. The collision repair industry in the UK has spent the last four years raising standards of Vehicle Damage Assessors, Body Repair Technicians, and iStock.com/yganko Reports from Around the World Workshop Managers and Owners; work providers know that any work undertaken in a qualified repair centers are completed quickly, efficiently and correctly, customers are kept informed at all stages, invoices are accurate and timely, and can be paid very quickly. Yes, it has cost the industry, but the benefits are rapid; fewer errors, less down time, swifter repair times, and faster payment result in a satisfactory return on investment. This is not a do it and forget it process – it will last a lifetime – constant progress, improvement and re-training will become a normal aspect of working life; far better than the alternative options which will see competitors who do invest getting more and more work because they are trusted, reliable, and favored by customers and work providers. ■ PAS777 can be purchased from the British Standards Institute http://shop.bsigroup.com/ ProductDetail/?pid=000000000030274125. Andy Latham is Managing Director of Salvage Wire, a unique Automotive Recycling and Motor Salvage Consultancy that focuses on helping clients be Safe, Ethical and Profitable. Capitol Connection Latest Legislative Updates from the Hill and Around the Country National Agreement Signed Addressing Right to Repair T he Alliance of Automobile Manufacturers, the Association of Global Automakers, the Automotive Aftermarket Industry Association and the Coalition for Automotive Repair Equality announced recently that they have signed a Memorandum of Understanding (MOU) regarding motor vehicle owners Right to Repair, a significant turning point in the decades long debate within the industry. The national agreement is based on a recent law finalized in the Commonwealth of Massachusetts (Chapter 165 of the Acts of 2013) reconciling differences between the 2012 bill and separate ballot initiative. The signed MOU extends the essential provisions for all light vehicles negotiated in the Massachusetts law to all 50 states and impacts all companies and organizations that are currently members of the signatory associations. The four organizations agreed to stand down in their fight on “Right to Repair” and work collectively to actively oppose individual state legislation while working to implement this MOU. ARA has long argued that car owners and independent repair shops need full access to the information, parts and tools necessary to accurately diagnose, repair and re-program vehicles. This national agreement is an important step and represents many years of hard work to provide consumers and repair shops with the information they need to make informed decisions. ARA continues to analyze the MOU and its impact on ARA members businesses and recycled parts usage, and looks forward to continuing to work with key stakeholders. ARA Provides Feedback to AAMVA on NMVTIS Annual Report Design T he American Association of Motor Vehicle Administrators (AAMVA) which administers the National Motor Vehicle Title Information System (NMVTIS) has requested comments on the content and design of the 4th Annual Report for FY 2013. ARA responded and suggested that for the 2013 report, AAMVA include statistics and analysis on the difference in the number of reports to NMVTIS of vehicles (denoted as VINs) first sold at salvage pools and the number of those same VINs being reported to ARA Participates in Connected Vehicle Stakeholders Outreach Meeting A RA participated in the U.S. Department of Transportation’s (DOT) meeting to seek stakeholder input on connected vehicle systems. DOT was most interested in learning about industry needs for guidelines, tools, resources, and policies that will support the successful implementation and operations of connected vehicle technologies. The primary target audiences for this meeting were state and local Departments of Transportation, transit operators, other operating agencies, and infrastructure owners who are starting to plan for the deployment and use of connected vehicle technologies in their area. Other stakeholders in the connected vehicle community, including national associations, were also encouraged to attend. During the meeting, ARA asked about involvement of automakers in the connected vehicle policy discussion as well as about privacy and use issues related to the data collected by different elements of the smart vehicle-to-infrastructure (V2i) grid. ARA urged policymakers to consider how the infrastructure would address the repair and replacement of malfunctioning smart technologies and if they would be reusable. This national agreement is an important step and represents many years of hard work to provide consumers and repair shops with the information they need to make informed decisions. NMVTIS again, minus the “sold to” records of entities buying 5 cars or less. ARA will also be submitting comments in response to AAMVA’s request for organizations to submit highlights/ accomplishments, innovations, observations, and testimonials regarding NMVTIS during the period of Oct 1, 2012 to Sept. 30, 2013. National Labor Relations Board Proposes Rule to Simplify Representation-case Procedures T he National Labor Relations Board (NLRB) has proposed changes to union elections that would limit employees’ ability to communicate to their employers during union campaigns by shortening the period in which a representation election is held; an election could be held in as few as 10 days. It would also impose new mandates on employers, such as forcing them to turn over employees’ e-mail addresses. In 2011, the industry fought a similar rule, which a federal judge overturned on a technicality. Now, with the NLRB at full strength, the Board re-proposed the measure. It passed along party lines, with the three Democratic members supporting it and two Republican members opposing it. ARA will work with its partners to oppose this rule. Comments to this proposed rule are due on April 7th. March-April 2014 | Automotive Recycling 69 State Issues T he 2014 state legislative season is in full swing. ARA and its Grassroots Network of automotive recyclers across the country, in coordination with affiliated state chapters, are very busy responding to any proposed legislation or regulation that could have an impact on the operation of ARA member businesses. For more information on how you can get involved in your state, please contact ARA Director of State Government Affairs, Jessica Thomas, at jessica@a-r-a.org or (571) 208-0428. Acquisition of Inoperable Vehicles Without a Title Several pieces of legislation have been introduced in an attempt to address the issue of car theft but in practice would have very negative unintended consequences for the operation of automotive recycling facilities. In Tennessee, House Bill 1484 and its companion Senate Bill 1729 were introduced in mid-January seeking to remove current statute that allows for licensed dismantlers and scrap processors to purchase inoperable vehicles without a title provided they are over 12 years old and hold the vehicle for 3 business days. The bills would instead require that for any vehicles without a title, the seller register for and provide a nonrepairable vehicle certificate to the dismantler or processor. The bills also include new computer system requirements for dismantlers and harsh penalties for noncompliance. ARA members are working with other interested parties to address the underlying issue of vehicle theft through reporting requirements to the state instead of eliminating current law. In Missouri, House Bill 1118 and Senate Bill also target current state law allowing for the purchase of inoperable vehicles that are at least 10 model years old without a title, provided the recycler or scrap processor verify with the state Department of Revenue that the car is not subject to any lien and obtain bill of sale. Senate Bill 594 in Missouri would replace the 10 year threshold with 20 years, effectively having the same impact as removing the threshold all together because of the very small number of eligible vehicles for purchase that would result. ARA is actively working with its affiliate chapter, the Missouri Auto and Truck Recyclers Association, and other stakeholders to address law enforcement concerns and build support for incorporating a NMVTIS and state reporting mechanism. Salvage Vehicle Laws & Licensing Members of ARA and the Virginia Automotive Recyclers Association successfully worked with the state Department of Motor Vehicles to introduce legislation strengthening certain requirements and practices relating to the licensing and activities of vehicle demolishers, rebuilders, salvage dealers, salvage pools, and vehicle removal 70 Automotive Recycling | March-April 2014 operators. House Bill 166 would require that vehicle records be kept at and license and business hours be displayed at the licensed place of business; expand the authorization of the DMV to deny, suspend, or revoke licenses for certain violations; codify a 30-day grace period for license renewals; and authorize the DMV to impose civil penalties for violations where a conviction is not sought. The bill is expected to be signed into law. Virginia recyclers are also addressing House Bill 441 which pertains motor vehicle insurance policies for salvage vehicles. The bill would require that no new automobile insurance policy covering a vehicle known to an insurer to be salvage shall be issued unless a notice is included in the policy stating that the vehicle is salvage and in the event of an accident and total loss determination, the insured will be paid less money than if a salvage title not been issued. ARA and VARA are assessing the implications of this bill for member businesses. It has not passed out of the Commerce and Labor Committee Legislation has been introduced in Iowa that would require motor vehicle scrappers to have a recyclers license issued by the state. ARA affiliate chapter the Iowa Auto Recyclers is in support of the bill, Senate Bill 3018, and working with Department of Transportation officials to strengthen other areas of the statue. A second bill, Senate Bill 2024, would remove brokers, consignment sellers and persons conducting an auction from the definition of motor vehicle dealer. Used Parts Automotive recyclers in Kentucky successfully amended legislation that sought to require owner consent for the use of any parts other than new factory parts for vehicle repair while the vehicle is under manufacturer warranty. House Bill 109 was amended to allow both new and recycled OEM parts to be used for repairs. The language was further clarified to will apply only to vehicles that are within their original factory warranty coverage and will not include extended warranties or drive train warranties dates of coverage. Counterfeit Airbags Legislation has been introduced in Alabama addressing the threat of counterfeit airbags. House Bill 213 and Senate Bill 163 would establish criminal penalties for selling, installing or reinstalling a counterfeit airbag, nonfunctional airbag, or a device which causes a vehicles diagnostic system to inaccurately indicate that the vehicle is equipped with a functional airbag. ARA is supportive of the legislation, which has passed in the Senate. Used Tires As expected following an onslaught of activity last year in Florida and Texas, legislation seeking to regulate the sale of used tires continues to be an issue dominating the legislative agenda this year. The focus this year has moved to South Carolina, where Senate Bill 893 was introduced and subsequently referred to Senate Committee on Labor, Commerce and Industry. SB 893 would make it unlawful for a business or individual to sell or install an unsafe used tire onto a passenger car or light truck. The bill introduces a definition of unsafe used tire, requires the state Department of Health and Environmental Control to conduct periodic inspections as well as establish a hotline to collect reported tire violations. ARA affiliate chapter, the South Carolina Auto Recyclers and Dismantlers Association, along with ARA and other stakeholders in the state actively reached out to the bill sponsor with information about the precautions and quality control procedures professional automotive recyclers take when selling safe, quality, recycled OEM Tires and the regarding the negative consequences this could have on the ability of professional auto recyclers to offer used tires to consumers. SB893 is not expected to move forward. Continuing Issues Major ongoing issues carried over from 2013 include salvage ac- New Automotive Refrigerant Approved for Use by U.S. EPA T he U.S. Environmental Protection Agency (EPA) recently issued a final rule that approved automotive air conditioning refrigerant HFO-1234yf to be sold to consumers so that they can recharge their vehicle air conditioning systems. Specifically, the EPA determined that states could not consider the refrigerant to be a volatile organic chemical (VOC) and therefore cannot limit its use for air quality reduction purposes. HFO-1234yf will likely replace a previously commonly used automotive refrigerant, HFC-134a which has a high global warming potential (GWP). HFC-134a has a GWP of 1430 whereas HFO-1234yf has a GWP of only 4. EPA had originally issued a significant new use rule (SNUR) that would have required anyone to notify EPA at least 90 days prior to the manufacture or processing of 1234yf for consumer use to recharge a motor vehicle air conditioning system based on toxicity concerns. However, concerned organizations filed suit against the agency claiming that the studies used to make the toxicity determi- quisition in Ohio. As expected, legislation was introduced in late February that would eliminate the state’s BID card and open the salvage auctions to unlicensed buyers. ARA is actively coordinating with its affiliate chapter the Ohio Auto and Truck Recyclers Association. and hearings will begin in March. State legislators in Iowa, Maryland and Michigan introduced legislation that would prohibit an insurance adjuster, appraiser, insurance producer, insurer or employee of an insurer from requiring a repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle. The introduction of these bills comes as the Automotive Service Association (ASA) announced earlier this year that is launching a concerted effort to address issues surrounding insurance parts procurement mandates at the state level. Similar legislation outlawing insurance company requirements to use a specific vendor or process for the procurement of parts or materials was introduced in New York last year. ARA is actively monitoring all bills and soliciting feedback from ARA members regarding their experience with the PartsTrader program. ■ Specifically, the EPA determined that states could not consider the refrigerant to be a volatile organic chemical (VOC) and therefore cannot limit its use for air quality reduction purposes. nation grossly overstated human exposure levels. Following a review of the data submitted by these organizations which indicated that there was no adverse health impact on consumers from recharging their air conditioner using 1234yf, EPA decided to reverse its decision. The new rule took effect at the end of 2013. More Delays for Health Care Law I n another change to the Affordable Care Act (ACA), the Obama Administration announced delays in implementation for two categories of employers. Mid- sized companies will get an additional year to comply with the employer mandate – pushing that date to 2016. These companies employ 50 to 99 full-time employees who work 30 or more hours per week. Businesses that employ 100 or more workers will have to begin complying in 2015 but there will be additional time allowed for full compliance. Seventy percent of employees will need to be offered coverage in 2015, versus the originally called for 95 percent. In 2016, 95 percent of employees of large companies will have to be offered coverage or the employer will incur fines. Companies that employ fewer than 50 full time employees are not required to provide coverage to their workers and no changes were made to that provision. The new rule will impact approximately 4 percent of companies according to the U.S. Department of Treasury. But media outlets have speculated that those 4 percent employ approximately 72 percent of U.S. citizens. These delays follow an announcement in July that already pushed back the employer mandate compliance from January 2014 to January 2015. ■ March-April 2014 | Automotive Recycling 71 Crossword Puzzle By Murray Jackson Across Down 1. ‘60s A&W offering (6,7) 8. Audrey Hepburn’s “Roman Holiday” scooter 9. ‘11 Buick crossover 10. Lower a custom’s roof 11. Popular coolant-antifreeze brand 13. Tourist-route description, often 14. Item chained to trucker’s belt 17. Quarter-mile race car 19. Dodge model replaced by Aspen 22. Residential car shelter, sometimes 23. Uplifting service-bay sight 24. ‘30s pickup for a rock group (1,1,1,10) 1. Palindromic Honda 2. Rejuvenate a classic 3. Race-track shape, sometimes 4. ‘11 GMC full-size pickup 5. Person-powered East-Asian taxi 6. State where Knievel jumped Snake River 7. Honda for think-inside-the-box types 12. Engine-hood opening (3,5) 13. Passenger-carrying Harley add-on 15. Alternative to new-car purchase 16. “The Love Bug” star car 18. Suzuki model replaced by SX4 20. Nissan Frontier’s big brother 21. Surname, Jag-driving “Inspector Morse” actor 72 Automotive Recycling | March-April 2014 Advertiser’s Index Company ............................................................................Website ..........................................Ad Pg. No. AA Midwest ....................................................................www.aamidwest.com......................................................6 Al-jon Manufacturing ......................................................www.aljon.com ........................................................59 Biz Unite ............................................................................www.bizunite.com ........................................................9 Brock Supply ................................................................www.brocksupply.com ..................................................55 Buddy Automotive Innovations..................................www.buddyai.com ......................................................37 CARS Expo ......................................................................www.cars-expo.com....................................................64 Car-Part.com ..................................................................www.car-part.com ............................................59, C-4 CCC Information Services, Inc.......................................www.cccis.com/ ........................................................59 Connection, The ........................................................www.platinumparts.com ..................................................5 CRUSH/S3 Software Solutions, LLC..............www.s3softwaresolutions.com ..........................................53 Equipment International..............................................www.equipint.com ......................................................13 Hollander, a Solera company..............................www.hollanderparts.com ......................................54, C-3 LKQ Corporation ............................................................www.lkqcorp.com/......................................................58 MarkingPenDepot.com ......................................www.markingpendepot.com ............................................16 Panhandle Converters ......................................www.panhandlecoverters.com....................................16, 56 Pemberton ..................................................................www.pembertoninc.com ................................................31 Phoenix Automotive Cores ........................................www.phxautocores. ....................................................57 Pinnacle Professional ............................................www.actual-systems.com..........................................17, 61 PGM Recovery Systems ..................................www.pgmrecoverysystems.com ........................................27 Pull-A-Part ....................................................................www.pullapart.com/ ....................................................57 Rebuilder’s Auto Suplly..............................................www.coresupply.com..............................................11, 61 SAS Forks ..........................................................................www.sasforks.com ......................................................19 Sellick Equipment Ltd. ........................................www.sellickequipment.com ............................................39 Sierra International Machinery ................................www.sierraintl.com......................................................21 SuperShear ..................................................................www.supershears.com..................................................39 Techemet..........................................................................www.techemet.com ....................................................55 Toyota Tsusho America ..............................................www.taiamerica.com....................................................35 The Pacific Group ....................................................www.pacificgroupinc.com ..............................................77 United Recyclers Group ..................................................www.u-r-g.com................................................61, C-2 Vander Haag’s, Inc.....................................................www.vanderhaags.com..................................................77 Vortex De-Pollution..............................................www.vortexdepollution.com ............................................13 Wells Fargo Business Insurance ..............www.wellsfargo.com/biz/insurance......................................15 2014 Industry Calendar SEND US YOUR DATES! E-mail Maria@a-r-a.org ■ Visit www.a-r-a.org to view all the industry’s events and meetings. To include your event in ARA’s calendar of events, e-mail the complete listing to maria@a-r-a.org. Get Ahead in 2014 To advertise, contact Caryn Smith at (239) 225-6137 or e-mail ARAEditor@comcast.net. Puzzle Answers from page 60 March-April 2013 | Automotive Recycling 73 Final Thoughts By Michael E. Wilson, ARA Chief Executive Officer michael@a-r-a.org Data Connections to the Future R ecently in March, ARA was privileged to accept an opportunity to provide a presentation to attendees at the 14th International Automotive Recyclers Congress (IARC) in Brussels, Belgium. ARA used the forum to emphasize the importance of OEM automotive parts data and the need for the automotive manufacturing community to provide professional automotive recyclers’ access to crucial OEM parts information. In this age of electronic commerce, it is imperative that “all” parties utilize unified parts information and descriptions. Original Equipment Manufacturers (OEM) parts information must be made available to professional automotive recyclers to allow them to seamlessly integrate their electronic part inventories into estimating and collision repair platforms. In my remarks, I specifically called on the automotive manufacturers to release the crucial “Build Sheet” information to the professional automotive industry’s inventory management entities – just as they have for insurance companies for years and are now doing for the collision repair industry. Now more than ever, automotive manufacturers must work to become better economic and environmental partners. Until professional automotive recyclers have access to OEM “Build Sheet” data, the market for OEM recycled parts will be unfairly limited. Historically only insurance companies have had access to this data but now a number of estimating companies are incorporating this “Build Sheet” data into vehicle identification technology which is available to collision repair shops for the first time. Regrettably, most auto manufacturers have fire walls protecting this data so that it can’t be integrated into profes74 Automotive Recycling | March-April 2014 As the use of technology advances it is not surprising that databases are connecting to create pathways to parts information – pathways to which professional automotive recyclers must have access. sional automotive recyclers’ inventory management systems. Data such as the original equipment guides (OEG) lists and regular production option (RPO) codes are important to have so that the information can be integrated into specific industry software programs. Each vehicle make and model can have more than one vehicle specific OEG list. As a result, there are a huge number of possible combinations and options that professional automotive recyclers do not know when procuring a vehicle and this lack of information makes inventorying the specific parts of that vehicle more challenging. Auto manufacturers are now also providing RPO codes to some industry sectors – again building a market with inherent disadvantages for recycled OEM parts. A vehicle without optional equipment will have RPO codes that specify important information such as the engine type and exterior paint color. For those vehicles with optional equipment, the RPO codes will indicate everything from exterior paint and interior trim data, vehicle’s make, model, style, edition, production date, vehicle’s standard equipment, factory-installed options, along with engine and transmission details. As the use of technology advances it is not surprising that databases are connecting to create pathways to parts information – pathways to which professional automotive recyclers must have access. In many of the new VIN decoding software programs, an insurance appraiser or collision repairer simply enters the 17-digit VIN number which then queries the manufacturer’s vehicle RPO database, where RPO codes are identified based on the last six digits of the VIN. Because this VIN decoder integrates directly a company’s estimating software, it has the ability to tap into the backbone of the estimating application which contains information on millions of vehicle parts and part numbers. The automotive supply chain market has changed significantly. The dialogue, the cooperation, and the access must also transform to address the most important factors -- the consumer's economic, environmental and safety choices. This market will provide significantly fewer repair options for consumers if professional automotive recyclers are not given access to OEM parts data. ■ Automotive Recyclers Association 9113 Church Street Manassas, VA 20110-5456 USA