Automotive Recycling November-December 2023

November-December 2023 TM

Published by the

Automotive Recyclers Association

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Nick Daurio l Takes the Gaveent as ARA Presid 2023-24 hreats covery • Cyber T e R y it d o m m o C PLUS:

ARA – PROTECTING THE INDUSTRY FOR 80 YEARS!

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Volume 43 // No. 6

November-December 2023

22

CELEBRATING 80 YEARS!

® – Recycled Original Equipment ®

Comments 4 // Direction Nick Daurio

6 // Horizon Sandy Blalock

8 // Gears Caryn Smith

News & Views Marketing

Opportunities

10 // Wheel

22 // Where Data & Relationship Marketing Meet

32 // A Collision of Costs

14 // Industry

In a world filled with data-based customer information, developing rapport and relationships with customers is still paramount. // By Maura Keller

Process

26 // Commodity Recovery Know-How

The collision repair industry is facing some of the highest repair costs in decades, opening new avenues for auto recyclers. // By Ryan Mandell

Security

36 // Protecting Yourself Against Cyber Threats

Streamlining the steps required in commodity recovery will lead to a more efficient and profitable process. // By Maura Keller

Cyber crime takes many forms, so it’s important to understand current trends and how to protect yourself, your employees, and your business. // By Carrie Kerskie

Connecting

Interview

28 // The Resurgence of a Global Auto Recycling Community Interactions as in-person gatherings as well as the International Roundtable of Auto Recyclers (IRT), allows auto recyclers from across the globe to share ideas and learn from each other.

39 // Now & Then

Jim Henry

16 // Recycler

Theresa Colbert

18 // Coaching

Carlos Barboza

20 // Safety

Sue Schauls

41 // ARA Benefits 45 // Advertiser Index 46 // Snapshot

Quarno’s Auto Salvage and Chuck’s Auto Part Solutions share their history to honor 80 years of automotive recycling. // Compiled by ARA Staff

// By Steve Fletcher

Check out our new website AutoRecyclingNow.com!

AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA. Phone: (571) 208-0428, Fax: (571) 208-0430 Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices.

Copyright © 2023 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.

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Automotive Recycling

On the Cover: Photos by Caryn Smith

Find us on

/AutomotiveRecycling November-December 2023 // 3

Direction

By Nick Daurio • ARA President

CELEBRATING 80 YEARS!

®

Value of an Outside Perspective

C

Shan Lathem and Nick Daurio at the presidential gavel exchange.

oming into the ARA Presidency in Kansas City this past October was a time to reflect on the last three years of my deeper involvement with ARA and the ARA Executive Committee, and also look ahead to a new year of activity representing the ARA membership. When I first joined the EC as secretary, I set out to learn and understand before offering input. I prefer to make comments on a situation or issue knowing that I have considered it thoroughly, and can offer a viable suggestion. Occasionally, though, I found that as a new EC member, as someone not so close to the issue, I could sometimes see it from another perspective.

In our business, we have always taken pride in running a solid operation. I encourage you to also take pride in your business, your team, and your industry, as well. As a principle, I believe it’s imperative that you should keep on top of all the standards and the regulations that are in place in your local, regional, and national regulatory agencies.

Our team works with purpose, to create systems and processes that make it a safe, fun, and productive workplace. For many years, we thought we were doing everything correctly.

ARA offers many ways to get insight and information to be on the right side of the rules. In fact, as we got deeper into the ARA University training and the CAR Certification process, we were surprised to have a new perspective on problem areas we had thought to be good. If I take our rainwater permit, as an example, we had the permit, but we found out it wasn’t current. A lot of the regulations changed, and we realized that they are going to change again in 2025.

The insight of the third-party auditor helped us with our CAR Certification and opened my eyes to the fact that you may think you are doing something right, but it can be wrong! We really needed to up our game. Another area we fell short was in organizing our documentation. We had it, but we didn’t have it all in one place with easy access to it.

For instance, we would invoice sales of scrap tires or waste oil, but we would keep the documents in separate folders.

4 // November-December 2023

– Recycled Original Equipment ®

Now with the certification program, all that information is right in front of you in one binder. It is all organized and easy to chart, whether it’s on a daily, monthly, or quarterly basis.

Trying to access the information is easy, especially when it comes time for an audit – whether it’s your third-party auditor or an EPA or state health and environment regulator.

Utilizing ARA University is a vital aspect for my son Greg, who manages our staff. Training and education are important to employee safety and welfare. Whether he teaches a new employee about de-pollution of a vehicle or ongoing safety training, and even the safe handling an electric vehicle, ARA University delivers important content ensuring we cover all the important points in training. Furthermore, the redesigned ARA CAR Certification logo now includes “chevron badges” representing EV, Recall, and Gold Seal Customer Service certification – and qualifying for them provides another chance at an outside perspective on your facility.

Our desire has always been to be honest and respectful of our customers and staff, and provide the best possible price on the best possible part with the best possible service.

Many of you can relate to that mission, and maybe you feel you don’t need an outside perspective. Once involved with the certification program, it reassured all of us that we were we were on the right path for success. The test came recently when the Environmental Protection Agency (EPA) regulators came into our facility. We had the confidence that we were 100% prepared to navigate through that process with positive results.

I can’t emphasize that enough. When the regulator shows up at your facility and you’ve been preparing for this, it’s an unbelievably satisfying reward for not only you, but for your staff who shares in the knowledge that you achieved a goal, and you did it the right way the first time.

Take pride in your business. A first impression goes a long way. As a second-generation owner, my father taught us values that have earned us respect from our customers, our community and from our industry peers.

Nick Daurio 2023-24 ARA President Automotive Recycling

Horizon

By Sandy Blalock • ARA Executive Director

CELEBRATING 80 YEARS!

®

Empower Your Team

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healthy organizational culture empowers employees to take initiative and make decisions within their roles. When your management style disempowers employees by limiting their autonomy, it can have unintended consequences. This lack of empowerment can hinder growth and create a culture of dependency.

What we need now more than ever is a sense of trust within businesses. We should all know that trust is a foundational element of a positive workplace culture. When employees feel that their every move is scrutinized, it erodes trust and creates an atmosphere of suspicion. Leaders need to send a message that they trust their employees to perform their duties effectively.

iStockphoto.com/Nuthawut Somsuk

We should all know that trust is a foundational element of a positive workplace culture.

We must put a system in place that does not require constant monitoring and interference as that can lead to a decline in employee morale. When employees feel that their efforts are not appreciated, and their abilities are constantly questioned, it can lead to frustration and disengagement.

For your business to thrive you need to stop focusing on maintaining the status quo and follow established procedures. This can stifle creativity and innovation as employees may feel hesitant to propose innovative ideas or take calculated risks. A culture of innovation often requires 6 // November-December 2023

– Recycled Original Equipment ®

a degree of autonomy and freedom to explore innovative approaches.

Do you feel the need to constantly tell employees exactly what to do and how to do it? You may need to decide if your management style leans towards micromanaging or if you do not have the right employees in the role best suited for their success. This leaves little room for employees to take ownership of their work and develop new skills. A thriving organizational culture encourages continuous learning and professional development.

Good managers see themselves as career developers; they know their employees well enough to uncover their skills and motivations. Employees are more likely to leave an organization where they feel their skills and expertise are undervalued. It is not a secret that high turnover can disrupt team dynamics, increase recruitment costs, and negatively impact the overall culture of the workplace.

Make sure to put in place good standard operating procedures so your team has a good understanding of what is expected. Once established, let the employees collaborate and make the system function. A culture of collaboration and teamwork is the most successful way to manage a business. When employees are constantly focused on following instructions from above, they may not communicate effectively with their peers or contribute to a collaborative and supportive team environment.

While micromanagers usually have the best of intentions, their behavior can impact team morale and performance.

It can also slow down productivity if a manager does not fully trust their team members to perform their jobs.

Recognizing whether you are being micromanaged requires a thoughtful self-assessment of your situation and something you should discuss with your manager.

A culture that prioritizes well-being and a work-life balance is more likely to foster positive morale and productivity. Cultivating a positive and empowering culture involves providing employees with the autonomy and trust they need to thrive in their roles. Build your teams to empower them and you will see productivity and performance go up considerably.

Reach Sandy Blalock at sandy@a-r-a.org. Share your thoughts pertaining to the advancement of professional automotive recycling.

Your letter could be published in an upcoming issue.

Automotive Recycling

Gears

By Caryn Smith • Editor

Is It Just Me, or Is Time Going By Faster?

S

omehow, we have reached the end of yet another year. It has been one of constant motion, never a break or dull moment; well except my annual escape to Lake Lure, North Carolina for a week of rest and a vacation day squeezed in here and there. Otherwise, it has been full of activity, and I am pleased to say that we are seeing tangible results to these meaningful efforts (more on that in a moment). And, now, here we are, looking straight at 2024.

It is time to start planning for success and organizing for the new year!

Just a few short months ago, in Kansas City at the celebration of ARA’s 80th anniversary Convention & Expo, we welcomed in new ARA President Nick Daurio, and new Secretary Sean Krause. Let me assure you that the Executive Committee (EC), no matter who is coming and going, does not let the grass grow under their feet.

They are active with committee and EC conference calls, events, and brainstorming ways to represent ARA members and automotive recyclers overall. This year they held the Strategic Planning meeting, and refreshed their mission and vision. They take their role seriously, investing valuable (volunteer) time towards their efforts.

Speaking of volunteers, the work of the ARA Committees in 2023 has shown tangible results this year for recyclers.

The Interchange Committee is working on new interchange numbers for new parts that will make it easier to respond to repair estimates. More data is more parts to sell.

The Certification Committee rebranded their logo, and made it more efficient than ever to get certified. I have said this many times, certification is the way of the future.

The Scholarship Foundation held the most fun fundraiser that I can remember, bringing in significant scholarship funds for youth of industry families, while also promoting the 80th Anniversary Convention.

8 // November-December 2023

The Government Affairs Committee is active on many fronts including watching EV battery regulations that are developing across the U.S., presenting to stakeholder groups, making commentary on regulatory issues and organizing next year’s Hill Day. The Annual Convention Educational Program Committee is already thinking ahead at next year’s Reno, Nevada event.

It should be a fun time out west, so mark your calendars for October 23-26, 2024.

The Awareness Committee is doing some dynamic work. They retooled all of ARA’s Member Program brochures to accurately reflect the benefit. Their largest undertaking is a third-party study of all of ARA’s communications and marketing. While there is work to be done, I am proud to say that the publications (both Automotive Recycling magazine, and Toolbox Edition) came away with flying colors. The report said, “ARA’s publications include a mix of great content and advertising. Layouts are colorful, attractive, and well designed.

Online versions display well and are easy to navigate.”

Also, ranked as the best performing website, ARA’s Auto Recycling Buyer’s Guide (www.autorecyclingbuyersguide.com) generated 16,285 total pageviews for 2023.

If you are a vendor trying to reach automotive recyclers, ARA publications and the Auto Recycling Buyer’s Guide deliver to the target market you want to reach.

Give us a call at (239) 225-6137 or email jay@drivenbydesign.net for details.

With all these activities and projects going simultaneously, you can see ARA at work ... as well as why the year went by in a blink of an eye.

We hope that you have had a prosperous year, and that you take the time to focus on what matters in the new year – the people in your life that make a difference each day and bring you joy.

ARA Officers PRESIDENT Nick Daurio Daurio Auto Truck Pueblo, CO nick@daurioauto.com 1ST VICE PRESIDENT Eric Wilbert Wilbert’s U-Pull It Williamson, NY eric.wilbert@wilbertsinc.com 2ND VICE PRESIDENT/TREASURER Shannon Nordstrom Nordstroms Automotive, Inc. Garretson, SD shannon@nordstromsauto.com SECRETARY Sean Krause Speedway Auto Parts, Ltd. Joliet, IL sean.krause@speedwayap.com IMMEDIATE PAST PRESIDENT Shan Lathem Cocoa Auto Salvage Cocoa, FL shan@cocoaautosalvage.com

ARA Executive Staff & Contractors ARA Headquarters • (571) 208-0428 EXECUTIVE DIRECTOR Sandy Blalock, Sandy@a-r-a.org SENIOR DIRECTOR FOR ASSOCIATION OPERATIONS; DIRECTOR OF STATE GOVERNMENT AND GRASSROOTS AFFAIRS Jessica Andrews, Jessica@a-r-a.org SENIOR DIRECTOR OF MEMBER SERVICES & CERTIFICATION PROGRAM Kelly Badillo, Kelly@a-r-a.org VICE PRESIDENT OF STRATEGY, GOVERNMENT AND REGULATORY AFFAIRS Emil Nusbaum, Emil@a-r-a.org DIRECTOR OF MEMBER RELATIONS Vince Edivan, Vince@a-r-a.org ADMINISTRATIVE ASSISTANT Kaitlyn Gatti, Kaitlyn@a-r-a.org EVENT MANAGER Kimberly Glasscock, (615) 476-4501 kglasscock@awardwinningevents.com ACCOUNTANT Candee Roth, Candee@a-r-a.org CERTIFICATION CONSULTANT Sue Schauls, sue.schauls@gmail.com CONSULTANT Ginny Whelan, vwhelan99@gmail.com A R A P U B L I C AT I O N S

AUTOMOTIVE RECYCLING™ MAGAZINE

AutoRecyclingNow.com

AUTO RECYCLER’S TOOLBOX®

AutoRecyclingNow.com

COMMUNICATIONS & MARKETING: Print & Digital Advertising Sales, Editorial & Design Caryn Smith / Jay Mason Driven By Design LLC (239) 225-6137 ARAEditor@comcast.net For all ARA print and digital advertising, editorial or production information, e-mail ARAEditor@comcast.net or call (239) 225-6137.

www.a-r-a.org Automotive Recycling

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News, Trends & Reports from the Automotive Recyclers Association

News from ARA’s Certified Automotive Recyclers Committee

T

he following update was shared at the Board of Directors meeting in Kansas City, and covers activities from September, 2022 to October 2023.

Chair: Shannon Nordstrom Staff Liaison: Kelly Badillo Consultant: Sue Schauls Committee Members Danny Baldwin Alex Bechstein Jenny Conrad Elizabeth Grubb Joe Hearn Pat Huesers Adriana Lee Alex Lee Dalbert Livingstone Amanda Matlock Alyssa Miller Jonathan Morrow Linda Pitman Emily Pochman Fran Reitman Scott Robertson Eric Schulz Slater Shroyer Mike Swift Stephanie Williams Dean Yancey One hundred members were engaged in the CAR and Gold Seal Certification program in 2022. Of the 100 CAR Records ordered 73 were completed and awarded CAR certification. Fifteen of the members not completing the process in 2022 ordered 2023 records to continue their 10 // November-December 2023

work toward certification. Thirty-nine were awarded Gold Seal Certification, and 37 were awarded Recall Certification for 2022 calendar year.

So far, over 260 members are engaged in the CAR and Gold Seal Certification program in 2023. Of those CAR Records ordered 146 were awarded CAR certification. One hundred nineteen members are still working on their CAR Records, some that are CAR certified are working toward Gold Seal, HVV and/or Recall. Ninety-four were awarded Gold Seal Certification, 114 were awarded Recall Certification and 30 were awarded High Voltage Vehicle Certification for 2023 year-to-date.

CELEBRATING 80 YEARS!

® – Recycled Original Equipment ® The Recall or Airbag Certification brought in an influx of 100 new members and encouraged existing members to engage in the certification program.

2024 will be the first professional audit year since the pandemic and the eBay Motors endorsement. Staff are working through the third-party auditor list and with the auditors to have an accurate and up-to-date list of available auditors posted to the website. The committee plans to engage the Small Business Technical Assistance providers available at the state level to support the program and help with the new member compliance.

The 2024 CAR Record will be available in January.

The new logo was unveiled in September and reflects the CAR and Gold Seal programs as well as the newer endorsements of the High Voltage Vehicle and Recall certifications. Updates to the CAR guidance documents and the website https:// aracertification.com will be a focus of the committee working in the next quarter.

A subcommittee is working on creating a parts “Quality Catalog” by compiling part preparation and shipping guidelines.

The information will be available via the certification website and as a Shipping and Receiving guide (https://aracertification. com/quality-catalog).

The committee has worked through changes with some of the affiliate CAR programs, providing tools to set up their programs but realizing to be part of the ARA CAR, they will need to be using an Electronic Record.

Compliance awareness articles are continually running in the Automotive Recycling magazine and in the ToolBox for the benefit of the industry. The articles try to make CAR standards driven by environmental and safety compliance common knowledge among all auto recyclers not just the certified members – similar to the way the ECAR Website http://www. ecarcenter.org/FactSheets.html is available to the industry as a whole.

Novak Auto Parts in Brighton, PA is the Star award winner and new home for the Randy Reitman Memorial traveling trophy, announced during the convention banquet. See Novak’s photo on page 46.

Automotive Recycling

Are You Using the New CAR Logo Yet?

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RA’s Certification Committee is excited to announce the release of a new more modern logo for the program as well as related badges signifying those facilities that are also Gold Seal, Recall and/or HVV certified. Members will start seeing the new logo in promotional materials and in ARA publications. Certified facilities are encouraged to start incorporating the updated logo and badges into their daily operations.

The new graphics are available now to certified facilities. Please contact ARA staff for the files.

The Committee and ARA realize that many proud certified member facilities have already invested significantly in signage and other marketing materials that utilize the existing CAR logo.

We thank you for helping spread the word about this industry recognized program! It is the Committee’s goal that

by January 2024 all certified members will be using the new logo.

IMPORTANT REMINDERS: All 2023 electronic records are due by December 31, 2023. 2023 electronic records received after December 31, 2023 will not be accepted. 2024 is a professional audit year. The 2024 electronic records will be available for purchase in the late fall. For a list of CAR-approved auditors, please contact ARA staff.

Automotive Recycling

ARA Presents at the Battery Inspection Forum Hosted by Waygate Technologies

O

n November 7th, Emil Nusbaum, ARA’s VP of Strategy, Government and Regulatory Affairs, gave a presentation entitled, Securing the Domestic Battery Supply: Understanding the inspection requirements at each stage of the EV battery lifecycle, at Waygate Technologies’ Battery Inspection Forum. The Battery Inspection Forum brought together a range of experts from government, national laboratories, academia, and industry for the purpose of exploring issues such as battery inspection, battery life extension, next generation battery

technology, circularity, and the challenges of battery recycling. Throughout the two-day conference, attendees had the opportunity to attend workshops and tours of Waygate Technologies’ Customer Solution Center, which included equipment ranging from CT systems, X-ray systems, and ultrasound systems that allow for the non-destructive testing of battery packs and battery modules. Emil’s presentation highlighted some of the ways that automotive recyclers are beginning to inspect and test electric vehicle batteries so that they can be put to their highest and best use.

The Key to Predictability for EVs is Testing to Determine Condition

NPO-JARA Holds International Forum In Hiroshima, Attracting 98 Participants

T

he non-profit organization Japan Automotive Recycler’s Alliance (NPO-JARA: President, Satoshi Takahashi) held the first NPO-JARA Environment Forum in Hiroshima. The three-day event was attended by 98 participants from Japan and other countries. Participants engaged in focused discussions and information exchanges about current trends and topics, including circular economy and carbon neutrality. Seventeen people from South Korea, Malaysia and Australia attended the forum meetings.

Participants visited the recycling operations of Itsukaichi Plant (Saeki Ward, Hiroshima City) of Kobelco Construction Machinery Co. and Yamako Co. (Aki Ward). The first day was spent learning about the automobile recycling operations and the production processes of the latest construction machinery.

On the second day, an event commemorating the 20th anniversary of the organization was conducted. Celebrating the anniversary event was delayed by four years because of the COVID-19 pandemic. It saw enthusiastic participants this year where participants exchanged in-depth information with each other.

NPO-JARA plans to participate soon in the Asian Automotive Environmental Forum to be held in Malaysia in autumn of 2023, in which participants from India are also expected. (Reported from the Daily Automotive News, August 3.)

November-December 2023 // 11

CELEBRATING 80 YEARS!

® – Recycled Original Equipment ®

WELCOME NEW AND RETURNING MEMBERS Are You Taking Advantage of the New SHiFT Program for Inventory?

I

nterested in getting more SHiFT cars? It’s easy to add the SHiFT plug-in to your

website. Plug-in available on sites hosted by URG, WordPress and custom applications.

See mock-up at right.

Reach out now to success@arscars.com to get set up and start

Aero Auto Salvage U-Pull-It Shreveport Affordable Partsworld Ltd All American Classics, Inc. All Four Trade dba Universal Auto Parts Critical Materials Recycling (CMR) EZ Tunez LLC Joyride Newco, LLC JS Truckmart Inc. Lithion Technologies Salvato ScrapCATapp.com Specialized German Recycling Used Auto Parts Central LLC Wheelzy

acquiring more cars today.

ARA Committee Corner The Latest News

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he Annual Convention Educational Programming Committee is fresh off the heels of a successful 80th Annual ARA Convention and gearing up for next year’s event. Thank you to all Kansas City attendees that took the time to send session-specific feedback via the Convention mobile app. That input is very important to your volunteer leaders’ planning process for future events. The formal “Call for Proposals” opportunity to submit educational session ideas will open in early January and all are welcome to submit their ideas.

Please contact Chair, Natalie Miller, for more information and any questions. The 2024 Annual Convention will take place October 23-26 in Reno at the Peppermill Resort. Stay tuned for details in the coming months!

12 // November-December 2023

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he Interchange Committee is successfully integrating peer interchange into the yard management software thanks to the cooperation of all committee members, Hollander, and Car-Part. Please continue to submit your peer interchange feedback to ARAPI@a-r-a.org – the individual that submits the most ideas AND the individual that submits the most accurate ideas will both win a prize at the end of the year! Future projects for 2024 include assigning interchange numbers for EV parts that do not currently have interchange and updating the Recycled Parts Guide to include EV parts and photos.

Get involved! Join a committee today by emailing staff@a-r-a.org.

Now Enrolling for 2024 – Peer-to-Peer Mentoring Recyclers Helping Recyclers – A Unique Hallmark of Our Industry!

Getting to the next level takes perspective & know-how. Well, here it is. n PEER-TO-PEER MENTORING. This program offers a profitable pathway to automotive recyclers desiring to run more efficient operations. n SUPPORTIVE MENTORS. Volunteers donate their time to ARA Member auto recycling facility owners or managers who are seeking fresh perspective on their business strategy and daily operations. n PAIRED FOR SUCCESS. Mentors & mentees are paired based on non-competitive criteria to create a successful match, yet may have similarities as in YMS, buying practices, and other factors to provide the best experience possible for both parties.

Save on consulting fees with personalized perspective by utilizing our network of peer mentors!

Contact ARA Staff (staff@a-r-a.org) today for more information!

Automotive Recycling

Industry

By Jim Henry

iStockphoto.com/jetcityimage; iStockphoto.com/Pict Rider

Full-Speed Ahead

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ew-car dealers are relieved the recent UAW strikes ended before they did any more short-term damage, in terms of reducing sales and inventory of new vehicles and original equipment parts, according to dealer interviews, and financial reporting from auto manufacturers and publicly traded auto retailers.

“It’s good news. It’s definitely good news,” that the strikes were settled, said Ford dealer Rhett Ricart, CEO of Ricart Automotive Group, Columbus, Ohio.

However, Ricart said the proposed settlements still leave dealers with plenty to worry about, both short- and long-term.

That starts with how long it takes auto assembly plants and parts suppliers to restart production and ramp up volume, once UAW members vote to confirm tentative settlements.

“It’s not like turning on a TV set,” Ricart said in a phone interview on October 31. “There’s still some pins and needles on the logistics part of starting back up.”

Auto suppliers estimated it would take about one-and-a-half weeks from go, to restart parts plants after strikes are settled, according to a member survey in October from MEMA, the vehicle suppliers trade association. (The group, formerly known as the Motor & Equipment Manufacturers Association, was restructured and rebranded in January 2023.)

Ann Wilson, MEMA senior vice president, Government Affairs, said in an October 19 phone interview almost 40% of the group’s members who responded to the survey had experienced layoffs connected with the strikes.

During the strikes, Ricart said dealers “hoped and prayed” for a settlement.

Ricart participated with Ford Motor Co. executives in a conference call on October 12. In the conference call, Ford bosses complained about the ripple effects of the strike 14 // November-December 2023

for dealers, suppliers, and communities, not just for Ford.

The day before, UAW President Shawn Fain authorized a strike at Ford’s Kentucky Truck plant in Louisville. The plant makes the F-Series Super Duty, the Ford Expedition, and the Lincoln Navigator. Those full-size trucks have a reputation for being among Ford’s most profitable models.

Ford and the union announced they reached a tentative settlement on October 25, subject to a vote by Ford’s UAW-represented employees. The other domestic automakers followed suit. The union and Stellantis tentatively settled October 28. General Motors tentatively settled October 30.

The strikes began September 15, the first time the UAW struck all three of the Detroit 3 at the same time. The usual practice has been so-called “pattern negotiations,” where the union traditionally chose one target, and then used that contract as a pattern for the others to follow.

Rhetoric was heated on both sides.

A strike seemed pretty likely, in the run-up to the previous UAW contract expiring in September. In anticipation, dealers said they stocked up on commonly ordered repair and maintenance parts before the strike began.

“The first thing we did was huddle up with our parts managers,” to tell them to order more parts ahead of the strikes, said New Jersey dealer Peter Lanzavecchia.

Lanzavecchia is president of Burns Buick-GMC in Marlton, N.J., outside Philadelphia. He also owns Burns Hyundai

and Genesis of Cherry Hill, both also in Marlton.

Besides stockpiling parts, he said his business had some success during the strikes ordering fast-moving OEM parts on eBay, like oil filters.

“It’s a bizarre world,” he said. “It was about the same price we pay GM. We never really had a crisis on parts, but were we worried about it? Yes!” Mary Jo Wheeler-Schueller, dealer principal for Wheelers Family Auto Group, based in Marshfield, Wis., said her group also stocked up on parts. The group has five new-car dealerships in Central Wisconsin, all with Buick, Chevrolet and-or GMC franchises.

“We ordered extra parts and battened down the hatches,” before the strikes, she said in a phone interview on November 1.

In addition to those short-term headaches, the proposed Detroit 3 settlements also sharpen some ongoing, long-term issues for dealers.

Heading the list in terms of dealer priorities is new-vehicle affordability, and the related issue of whether automakers will seek to share costs with dealers, to offset higher labor costs.

Costs are bound to go up. According to a UAW statement, the Stellantis deal, for instance, grants 25% in base wage increases through April 2028, and will cumulatively raise the top wage by 33% compounded with an estimated cost-of-living allowance, to over $42 an hour.

Automotive Recycling

The starting wage will increase by 67% including cost-of-living, to over $30 an hour. Temporary workers, the lowest-paid category at Stellantis, will see a raise of more than 165% over the life of the agreement, the union said. Tentative agreements at Ford and GM are on similar lines, according to the union.

Lanzavecchia said dealers are worried about how higher labor costs get paid for.

“We’re concerned if GM tries to pass these costs through to the consumer, it’s going to cost them market share. People are not going to want to pay more,” he said.

Dealers are also watching whether OEMs try to shift some costs their way, he said.

“We’re also concerned that when GM tries to offset those increases, whether they’re going to do some cost-sharing with the dealers,” Lanzavecchia said in a phone interview on November 1.

Other aspects of the strikes are also tied up with the transition to electric vehicles and away from internal-combustion engines

Automotive Recycling

– another topic that’s never far from the minds of most dealers.

For example, the UAW wants to organize new plants being built to manufacture batteries for electric vehicles. A big concern for the union is that electric vehicles are supposed to be simpler to build, and therefore require less labor.

Like the OEMs, dealers are concerned that the switch to electric vehicles is being paid for years in advance of enough consumer demand to recoup their investment.

During the strikes, some automakers postponed some planned investments in electric vehicles and associated programs.

Wheeler said she’s all in favor of EVs. But she’s worried about the fast-paced, no-turning-back nature of the switch to EVs from internal-combustion engines, and the fact that the changeover is so dependent on government tax incentives for buying an EV. “You can’t push something on a consumer when they don’t want it, and when

the federal government decides what people should buy, there’s a major backlash,” she said.

“I think it’s good, having a product so we can compete. We needed a product that could be a Tesla-killer,” she said. “But to change your whole portfolio over to this new technology and to kiss your bread and butter product goodbye,” is a big risk.

Jim Henry is a New Jersey-based, veteran freelance reporter covering the U.S. auto industry, writing for trade magazines Automotive News and WardsAuto, plus Forbes and others. Concentrations include U.S. light-vehicle sales, dealership Fixed Operations and Finance & Insurance, mergers and acquisitions, publicly traded dealer groups, OEM financial results, and Connected, Autonomous, Shared, Electric Vehicles.

He is also the former department manager, corporate strategy and market research for Mercedes-Benz USA, and a former president of the International Motor Press Association.

November-December 2023 // 15

Recycler

By Theresa Colbert

Selling Airbags on eBay? Get CAR Certified ASAP!

I

get calls every day from people who think eBay is no longer letting people sell airbags. This isn’t really the case – licensed auto recyclers can sell airbags on eBay, if you’re CAR certified. eBay now requires CAR certification to sell airbags.

For folks who aren’t familiar, CAR stands for “Certified Auto Recycler.” This certification comes from the Automotive Recyclers Association (ARA). My business is CAR certified. When we first looked at the certification process and saw that we’d need to pay money, order a “certification tracking record,” and participate in a ay. “physical audit” ... Well, being busyy wpeople, ged in an ified d or chan ert ie C if d A o R m A we were all started. out ot be reluctant. etWe nnpretty must me ents Logos ca gos, you requirem on the rogram by “easy questions” use the lo cythe P r To answering e cl e R e v oti Autom(Examples: audit.

How many employees?

Provide your NMVTIS number). The most time-consuming part was the pictures; honestly, it took two of us part of a Saturday to get all the pictures and load them to the site.

(Examples: pictures of your parking lot, fire extinguishers, first aid kits.)

But we took the leap and to our surprise, we found that getting CAR certified really isn’t that difficult.

Here’s the process in a nutshell: 1. Sign up for CAR certification at aracertification.com. There’s a $250 fee.

2. Complete a physical audit of your business. This is the biggest thing that goes into CAR certification. You’ll need to upload photos from your business to complete the audit.

3. ARA will grade your audit. You’ll need to score at least 70% in each section. If you pass, you’ll get an email and a certificate in the mail, and ARA will contact eBay, to let them know you passed.

4. eBay will call or email you, letting you know that you’re good to go!

After you’re certified, you’ll want to look at your eBay listings and make sure that they have the necessary disclaimers. If you use Checkmate, just call Car-Part.com

.com

ation c i f i t r e c www.ara

16 // November-December 2023

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We took the leap and to our surprise, we found that getting CAR certified really isn’t that difficult.

(859-344-1925) to ask for an updated eBay template with a recall disclaimer.

The web designers can do this for you, and it typically only takes a day or two. Also, Car-Part.com’s trainers can assist you with setting up your eBay business policies.

You’ll need them to sell airbags on eBay. The trainers can also help you “clean up” your existing policies, and help you add a hazmat/airbag policy.

As a reminder, you want to be very honest on your self-audit. This year, 2023, is a self-audit, but in 2024, to keep your certification, you need to be a member in good standing of ARA, and you will need to have an ARA-certified third-party auditor to come to your yard, and do an onsite audit.

And I want to warn you – you really have to get CAR certified, to sell airbags or airbag-related components on eBay. If you’re not CAR certified, don’t even try to sell things like airbags, seatbelt pretensioners, airbag sensors, SRS parts, steering wheels

YE AR S!

®

– Recycled Original

Equipment ®

with airbags, etc. eBay has already started banning people who list these parts without being certified. It’s not worth it!

I think the best part of getting CAR and hazmat certified (even though we don’t sell air bags at my yard) is that we used to feel so scared thinking, “What do we need to do to be compliant?” Now, we have it all laid out in front of us. Are we perfect? NO! We only got a “C” on the test! You guys know I am an “A” kind of girl! I have big plans to get an “A” very soon!

As always, if you have any questions, please get in touch.

Theresa Colbert owns Recycled OE Parts in Richland, MO opening it from scratch 3 1/2 years ago.

For the last 13 years, she is a Sales and Training Specialist at Car-Part.com.

Her goal is to find the correct product to fit each customer and make sure that they are trained to use it. Reach Theresa at (859) 802-2382 via phone call or text, or email TheresaC@Car-Part.com.

Automotive Recycling

Coaching

By Carlos Barboza

Ikigai: Finding Purpose and Fulfillment in Everyday Life ’ll start with this question: Why do you want what you want? The Japanese philosophy of ikigai describes a person’s reason for being and purpose in life. Stemming from the words iki, meaning “alive,” and gai, meaning “worth,” it’s the belief that aligning your passion and vocation with your mission and profession is the secret to a long and happy life or, more poetically, “a reason to get up in the morning.”

Neuroscientists, journalists, and ikigai adherents have pointed to the longevity of the Japanese people to establish that defining and following your life purpose in this way leads to a longer life span. For example, Okinawa is a Japanese island south of the mainland.

The island has the highest proportion of people over 100 years old in the world and ikigai plays a major role in Okinawan culture.

Thus, ikigai is more than a temporary motivation, it’s a reason to live that brings you meaning, purpose, and fulfillment to your life, while also contributing to the good of others.

Therefore, ikigai symbolizes the connection of four key elements: 1. Passion (What You Love): This represents the activities and pursuits that bring you joy and a sense of fulfillment.

It involves your hobbies, interests, and the things that make you feel alive.

2. Mission (What the World Needs): This element refers to your sense of purpose and the meaningful contributions 18 // November-December 2023

om a

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you can make to the world. It’s the way in which you serve others, your community, or even the greater global community.

3. Vocation (What You Can Be Paid For): This part covers the activities, talents, strengths or skills that you are good at and can potentially provide a source of livelihood. Keep in mind that a “recognition” could be part of this element, which means that even though you don’t get paid, the recognition validates our existence and tells us that we matter.

4. Profession (What You Are Good At): This element involves recognizing the things that you can do well and feel competent in.

Once you create your own ikigai map and converge these four elements; then you’ll find your “sweet spot” (this covers something you are passionate about, that you are also good at, that the world needs now, and for which someone will pay you). For example, I am passionate about playing guitar, am also skilled at it, there

is a need for it in my world (I do volunteer in a church and play concerts with my musical group), and I do get several offers to do musical performances. I might say I’ve found my ikigai sweet spot in my hobby lifestyle. I’m still finding my ikigai in my working lifestyle and retirement. That’s right, you can have as many ikigai as you want, just make sure to accomplish each one of them. When you miss one of the elements, that’s what you need to work on.

Another example, I love to write articles for ARA’s Automotive Recycling and ToolBox publications. My mission is to share my life experiences with the recycling community and this contribution inspire me to help others to fuel their human soul and motivate them too.

When you find this harmony and sustainability, you experience a profound sense of purpose and satisfaction, so it’s important to evaluate if your ikigai purpose can be maintained in the long term in order to reach a more fulfilling and balanced life.

Finding purpose in life is one of our most fundamental human needs. But, (and of course there is a “but”), we all know the struggle of trying to unlock what we really want in life such as feeling overwhelmed, like you don’t have time, fear-based thinking, and so forth. The good news is that it’s malleable. With some creativity, you can stretch and organize it to fit your needs.

So, how to find your ikigai? Spend some time visualizing your ideal day from start to finish. Believe it or not, this is going to help you determine your ikigai and your true meaning. What do you really want? What would you do if money were no object?

Pay attention to how you feel.

When you’re finished visualizing, make sure to write it down (or write it down as you’re visualizing). Along the journey, spend some time brainstorming and writing down small changes you can make to align Automotive Recycling

“Only staying active will make you want to live a hundred years.” –JAPANESE PROVERB your mission. Align this with what you love, what you’re good at, what the world needs, and what you can be paid for.

If you go through this process and find that your vision meets your real-life expectations – congrats, you’re on the right path to find your ikigai. Move on to the next section to see how to put it in place. If the opposite is true, don’t worry, it can take time to find your ikigai.

The journey to ikigai might require time, deep reflection, effort, a willingness to step outside of your comfort zone.

Here are some steps that can help you on your journey: 1. Know yourself reflection: Look at your inner self and have an honest conversation with yourself and look for those things that bring you joy or make you feel most alive.

2. Release your old beliefs: Don’t be afraid to try new things or pursue different interests. Sometimes, your ikigai may lie

Automotive Recycling

in uncharted territories, waiting for you to discover it.

3. Be in the ‘here and now’: Simple, be present and live in the moment.

4. Consider your legacy: How do you want to be remembered? What positive contributions do you want to make to the world?

5. Create small goals: Once you’ve written down your annual goals, create small monthly goals to help you reach them. Remember, your goals must need a meaning in order to enjoy the journey.

6. Plan it out: Now that you’ve got a list of long-term goals and short-term goals, organize them using a chart, calendar, or notebook. People tend to hang goals in the closet, kitchen or any area that you usually visit every day.

7. Create a support system: Share your goals and passions with your family, friends, reach out to mentors, coaches, teachers, and other professionals who have

reached similar goals. Cultivate relationships, network, and learn as much as you can from your support system.

8. Check your progress. Are you achieving your short- and long-term goals?

Is there anything bothering you? What’s going on?

So, finding your ikigai is knowing yourself. Live the moment, be grateful and good luck finding your ikigai. The best time to get started was yesterday. The next best time is now. Allan W. Watts said: “It’s better to have a short life that is full of what you like doing, than a long life spent in a miserable way.” Remember, once you have found your purpose in life, it is meaningless unless you act on it. Blessings.

Carlos Barboza is the owner of Eco Green Auto Parts, Orlando, FL. Their website is https:// ecogautoparts.com and they can be found on Facebook @ecogreenautoparts.

November-December 2023 // 19

Safety

By Sue Schauls

Recall Policy for More Than Airbags very auto recycling facility should have a written recall policy, which is a policy that outlines the procedures for handling parts that have been recalled by the National Highway Traffic Safety Administration or NHTSA. Recently, the focus has been on the massive airbag recalls.

According to NHTSA, “Approximately 67 million Takata air bags have been recalled because these air bags can explode when deployed, causing serious injury or even death. Long-term exposure to high heat and humidity can cause these air bags to explode when deployed.” https://www. nhtsa.gov/equipment/takata-recall-spotlight. Another massive recall is looming too. “U.S. auto safety regulators says 52 million air bag inflators should be recalled over rupture threat.” https://www. reuters.com/business/autos-transportation/ us-says-52-million-air-bag-inflators-areunsafe-should-be-recalled-2023-09-05/.

While airbag malfunctions continue to drive recalls and public awareness, it also serves as a good reminder that other vehicle parts can be recalled for various safety issues as well.

Over a year ago, the ARA announced that eBay Motors required ARA Recall Certification to sell airbags on their platform. Recall certification can only be obtained by those members that are certified auto recyclers or CAR Certified.

CAR Certification is based on safety and environmental regulatory compliance.

Recall Certification was originally carved out of the Gold Seal program for quality and customer satisfaction to set standards for the ongoing management of recall information and to provide guidance on in-house procedures for processing recalled parts.

The standards are common sense practices meant to protect an auto recycler from selling recalled parts. The standards also address limiting liability in the event a part is recalled after being sold.

20 // November-December 2023

iStock.com/Diane Pilon

E

While airbag malfunctions continue to drive recalls and public awareness, it also serves as a good reminder that other vehicle parts can be recalled for various safety issues as well.

• This facility does not sell Recycled Original Equipment (ROE) auto parts that have safety recalls issued by an Original Equipment Manufacturer (OEM) for re-use or repair of another vehicle. Safety recall parts are only sold to factory authorized collectors assuring a documented OEM-approved destruction. Recalled parts may also be sold for litigation purposes.

• This facility conducts a VIN check for safety system recalls when the vehicle is inventoried. If recalled safety items are found, the recalled part is not entered in inventory for sale or is assigned a recall code and/or is struck as not saleable for reason of recall in the inventory management system. Recalled parts are removed (or destroyed) from the vehicle and processed for scrap or bounty collection.

Safety parts known to have recalls such as airbags are also VIN checked for recall

at point-of-sale. If a recall exists, then the part is struck as not saleable in the inventory system and processed for scrap or factory authorized collection methods assuring documented OEM-approved destruction techniques. Deployed airbags do not need to be removed to be checked in using the factory authorized collectors.

The point-of-sale recall check must be made at the government website: https://vinrcl.safercar.gov/vin/ or https://www.nhtsa.gov/recalls For ARA Members with login: https://ararecalllookup.nsvrp.org/ The facility enters each ROE part into the inventory management system with a unique ID that provides traceability for the source and sales destination. Parts, including brokered parts, are listed on invoices with the source VIN. Upon direct notification from the manufacturer, this facility processes recalled parts by correlating the manufacturer’s recall Automotive Recycling

by VIN to the facility’s stock number. All unsold parts are struck from inventory and removed from online listings such as eBay Motors and/or third-party broker sites.

Upon direct notification from the manufacturer, recalled parts that were sold are flagged for a notification letter to the buyer, as identified by stock number in the sales record. The recall notification letter sent to the customer will be mailed with a delivery confirmation receipt. Delivery receipts will be logged. If a notification letter is returned as undeliverable, an attempt to call the customer at the phone number from the invoice and/or account will be made. This call will be logged. Customer reimbursement and parts replacement will follow the guidelines provided by the vendor for recalled parts.

Remember that airbags are dangerous goods and thus must be shipped as hazardous material or HazMat. Shipping staff must be certified every three years to prepare HazMat for shipping. The standards apply to all employees associated with the shipping of airbags, seatbelt pretensioners

Automotive Recycling

and hybrid batteries. Even facilities that do not sell airbags or other designated dangerous goods to retail customers must be HazMat certified to ship these parts to recyclers, remanufacturers, and factory authorized collectors such as RAS Core for bounty payment. As well, your company should be using an emergency hotline service when shipping. ARA has negotiated a deal with InfoTrac for $75 a year. Contact staff@a-r-a.org to sign up.

Recall certification, or putting in place a standard operating procedure for recall management, can benefit every auto recycling facility even if not seeking CAR certification or selling airbags on eBay Motors.

Putting a policy in place now will make the facility ready when a recall comes though whether it is another massive airbag recall or a different auto part yet to have malfunctioned. As they say, an ounce of prevention is worth a pound of cure.

The ARA resource for recall certification is available for all auto recyclers to view at https://aracertification.com/recalls.

ARA also has an airbag handling protocol posted on the website. The protocol is for automotive dismantlers specifically handling airbags for retail sales. The standard operating procedure helps to define the steps that must be taken to maintain the integrity of the safety device. The purpose of the document is to provide guidelines for the practice of removing an original equipment non-deployed airbag from a salvaged vehicle for installation in another vehicle.

Sue Schauls is an environmental and safety expert whose career started 28 years ago at the Iowa Waste Reduction Center at University of Northern Iowa. She is currently the Executive Director of the Iowa Automotive Recyclers trade association and is the compliance consultant to the industry through the ARA’s Certified Auto Recyclers (CAR) program and the I-CARE program – Iowa Certified Automotive Recyclers Environmental Program. Sue assists recyclers in maintaining environmental and safety compliance.

November-December 2023 // 21

MARKETING

Where Data & Relationship Marketing Meet In a world filled with data-based customer information, developing rapport and relationships with customers is still paramount. By Maura Keller

F

or many companies, gathering customer data is paramount to connecting with those customers and understanding who they are, what they buy, what they spend, and how often they make purchases. But being completely data focused can cause issues when developing rapport and building relationships with customers and potential customers. How have marketing initiatives changed as a result of 'data fields' needed to be filled in with customer information? And what are the benefits and challenges of focusing on data fields?

Erik Mason, founder and principal, Ryse Marketing & Communications, says the process of gathering and analyzing customer data within the automotive recycling industry as well as other industries, will never go out of style and is an essential part of all marketing activities.

If an auto recycler is not effectively capturing and operationalizing this data, they’re missing vast opportunities for business growth, and creating inefficiencies such as wasted spend.

“The good news is that as a result of these endeavors, customer marketing and relationship nurturing activities have become more effective, leading to better business outcomes such as improved customer retention and increased share of spend through better personalization of various marketing activities,” Mason says. “Giving the feel of creating more bespoke programs and campaigns helps companies achieve scale by standardizing the data capture and how it’s utilized, leading to increased productivity. This allows companies to do more experimentation in their marketing efforts to help expand market penetration, or pursue new market opportunities.”

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Mason says the drawbacks to being overly focused on data fields is the lack of context associated with the data. The rigidity of the data can lead auto recyclers and their marketing team to make some harmful, false presumptions that actually can negatively impact a customer relationship.

“This can make a particular campaign or program intended to build closer relationships actually feel more ‘bot-like’ and risk customer experience and disengagement from feeling disingenuous or inauthentic,” Mason says.

Sara Jensen, principal at Brighter Messaging, says success with data-driven marketing depends on the way a company sets up the processes used to collect the data.

With a good system in place, it's relatively straightforward to collect and organize the information you need in organic ways throughout interactions (whether in person or virtual) with auto recycling customers.

“You also need to be intentional about not over-collecting data. As you consider data points to collect, ask how you're going to use them,” Jensen says. For example, you'll want to be able to segment your email list based on what you know about customers so you can send tailored emails – but how granular are you going to get with those messages? A simple online form completed by the customer in the normal course of business can provide enough information to do pretty detailed segmentation.

If you have a plan from the outset, you know what you need to collect and can avoid bogging down interactions with too many questions.

Also consider the data you can collect based on activity.

To use another example from email marketing, you can gain information about your recipients by looking at who clicked a certain link within a message. Follow up with Automotive Recycling

iStock.com/ipopba

those who clicked the link with related content, and you build the relationship by being relevant and helpful.

“Finally, make sure the systems within your business can talk to each other. If your fulfillment department has one platform that holds information about customer orders, your marketing software should be able to sync that information,” Jensen says. “Active customer data is a gold mine for future marketing. Many companies don't realize they already have data they need in-house – it’s getting everything linked up and usable that tends to be a challenge.”

The Importance of Relational Marketing Relationships have always been paramount in business – but the rise of digital media has eroded the experience people have when interacting with many different types of businesses. According to Jensen, numerous studies have demonstrated that consumers prefer companies that can address their unique problems and needs. So in the world of automotive recycling, that may mean helping a customer locate the exact part they are looking for in the self-service segment of your business. Or it could entail making the necessary arrangements to deliver a part earlier than a customer expected – leading to a memorable “wow” moment for your customer.

“As so many customer interactions have become impersonal and downright unpleasant, businesses that do get relationships right have a big opportunity to shine,” Jensen says. “It’s also been consistently shown that growing a current account is less expensive than acquiring a new customer, yet many businesses are chasing new leads while failing to service the customers they have.”

As Mason further points out, people typically buy from people more than they buy from a particular brand or Automotive Recycling

company; transactions, especially in a B2B environment, are still done on a people-to-people basis.

“The cost of customer acquisition also continues to increase, so it’s vital to invest in the customer you have today rather than investing in the customer you’re still trying to get,” Mason says. “Revenue predictability is another important reason for why relationship marketing is so essential as it helps with financial modeling, while giving companies greater ability to plan and allocate budgets that will help grow the business and ensure overall financial health.”

And as the amount of customer information being tracked, stored, and even hacked grows exponentially, consumers are weighing the benefits of personalized marketing communications versus the risks of leaked data, says Kathleen Hackney, founder at Fayre Marketing.

Another risk in utilizing customer data involves the upkeep and maintenance – messy and inaccurate data will not serve you or the customer.

The rigidity of the data can lead auto recyclers and their marketing team to make some harmful, false presumptions that actually can negatively impact a customer relationship.

“Technology required to maintain and act on data collected can also be expensive and difficult to manage,” Hackney says. “On the flip side, successful relationship marketing campaigns rely on data and analytics to understand customer behavior, preferences, and purchase patterns. By leveraging customer data, businesses can create targeted and personalized campaigns that resonate with November-December 2023 // 23

their audience. According to Epsilon Research, 90% of customers prefer personalized experiences. Data-driven personalization ensures that customers receive offers, recommendations, and content that align with their preferences and needs.”

Building Connections Data is the new-world currency, or in other words, those with the information have the power. As Mason explains, this might sound quite sinister on the surface, but structured data gathering and contextualized analysis provides immensely helpful insights into human buying behavior.

“Coupled with the need for greater responsiveness and agility to meet the fluctuating needs of customers, data is the heart of marketing operations because it underpins everything and if done right it leads to better customer relationships that in turn creates increased profitability and revenue,” Mason says.

Jensen recommends auto recyclers don’t over-complicate connecting with customers. Focus on doing what you need to do in order to provide outstanding service to every customer.

“Empower your employees to solve problems when they arise,” Jenson says. “Look to your internal systems for data that is already collected in the course of business, but not shared with marketing.”

Hackney adds that auto recyclers should continually assess the customer’s satisfaction through surveys and measurements at different points in their lifecycle as well as pay attention to customer sentiment on social media, online reviews, and feedback from the “front line,” as employees interact directly with customers.

Some additional key steps to drive success include: Onboarding campaigns: Reinforce your customer’s purchase decision upfront, introduce your company brand on a personal level, and educate your customers about the product they purchased from you.

Engagement campaigns: Through email newsletters, invitation to events, and fostering a community, auto recyclers can also build a connection beyond the transactional. Fun quizzes and polls can foster engagement while also allowing you to gather data.

Promotional campaigns: Personalize offers based on a customer’s past behavior and demographics.

Loyalty campaigns: Traditional loyalty programs create systems to measure and modify human behavior.

This is the basic value of transactional points-based programs. Once the systems are in place, the data can be analyzed to create market tactics to drive behavior.

Historically our offline social behaviors have been too hard to measure at scale. But today, we are able to measure online social behavior and how it is impacting offline behavior. In addition, loyalty initiatives such as VIP events, special giveaways, referral bonuses, and targeted promotions ensure your most valuable customers have a strong relationship with your company.

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Also be sure to measure the effectiveness of your efforts.

Too often companies collect information on customer satisfaction. Did you like the product you purchased? What the price fair? Are you likely to return? In this new datadriven world, it is time to ask relevant questions that will measure business outcomes and identify improvements: What were your priorities in visiting our auto recycling facility? How well did we meet or exceed your expectations? Which products were most effective? How does our facility compare to other recyclers that you’ve visited?

Mistakes To Avoid When it comes to being data-driven versus relationship focused in the customer management world, the biggest mistake Jensen sees companies make is leaving money on the table with current customers. A few probing questions can often reveal ways you can service a customer that you didn't know about.

“It takes practice to get good at doing this in conversation, but it's possible to develop a process that helps your employees uncover new ways to help great customers,” Jensen says. “And if you’re not leaving money on the table, ask for a testimonial and/or referral. Most people are happy to recommend businesses that have done a great job.”

Jensen says that assuming companies have to be either data-focused or customer-focused is a false dichotomy.

Auto recyclers can do both, and they really should.

“It comes down to having a strategy for collecting and organizing the right data, ensuring it can be used in marketing efforts,” Jensen says. Focus on helping your customers solve problems and delivering service that delights. Consider the customer experience in all points of interaction with your business. You can scale relationship marketing, but you have to be intentional about creating a positive customer experience.

And remember that Gen Z and Millennials are twice as likely to be omnichannel shoppers, which Jensen says underscores the need for data and customer insights both online and offline. In order to build strong customer relationships, auto recyclers need to anticipate needs and be proactive in reaching customers.

“With the rise in AI, we will see machine learning improve chat bot responses, uncover unmet service needs, improve issue resolutions, and scale personalization like never before,” Jensen says. “While data is key to the success of these evolving platforms, nothing can replace the human element of personalized contact. Building empathy and emotion will never be truly possible without a one-on-one interaction, so ensure your company offers a balance of both.”

Based in Minneapolis, Minnesota, Maura Keller is a seasoned writer, editor, and published author, with more than 20 years of experience. She frequently writes for various regional and national publications.

Automotive Recycling

PROCESS

Know-How

Streamlining the steps required in commodity recovery will lead to a more efficient and profitable process. By Maura Keller

W

hen it comes to successful commodity recovery, automotive recyclers have a desire to maximize their facility layouts to optimize dismantling practices, production, inventory, safety, and overall customer experiences. But that is easier said than done, especially when it comes to the ebb and flow of commodity recovery. So can it be done? Sure, say the experts. You just need to remember that focusing on a streamlined, well organized, proficient facility environment is key, as is understanding the fluidity surrounding commodity recovery practices.

Value Stream Mapping Efficiency According to Jeremy Barnett, operations manager at Snyder’s Salvage in Holland, TX, at Snyder’s, they continually evaluate their dismantling bays for improvements in commodity recovery.

Quite simply, it is Snyder’s never-ending search to find a better, more efficient way to process vehicles. As part of that goal, Barnett began utilizing the value stream mapping (VSM) concept.

“Value stream mapping is defined as a lead tool that employs a flowchart documenting every step of the process,” Barnett says. “Many lean practitioners see VSM as a fundamental tool to identify waste, reduce process cycle times, and implement process improvement.”

As Barnett further explains, at its core, value stream mapping is a workplace efficiency tool designed to combine material processing steps with information flow, along with other important related data.

“VSM is an essential lean tool for an organization wanting to plan, implement and improve while on its lead 26 // November-December 2023

journey,” Barnett says. “VSM helps users create a solid implementation plan that will maximize their available resources and help ensure that materials and time are used efficiently.”

In laymen’s terms, Barnett advises auto recyclers to look at their facility, and the processes in that facility, to determine what is currently occurring and what you want to occur as it relates to commodity recovery. Identify product flow, resources needed, and placement of those resources to accommodate an efficient workflow.

In essence, your facility’s organization around commodity recovery tasks and steps fundamentally boils down to deciding, sorting, and storing. The key to being organized around the commodity recovery process is to streamline the overall process and recognize that indecision creates piles. Inefficient storage procedures creates piles. And piles create stress.

Increasingly, auto recyclers are assuming a new role: strategists familiar with human behavior and how facility layouts, specifically dismantling bays, can affect that behavior. More recyclers are focusing on understanding the bottom line issues of comfort, health, safety, and productivity patterns that are affected by a disorganized facility environment and the overall commodity recovery process.

“I am not a subject matter expert in the area of lean manufacturing, nor have I received any sort of formal training,” Barnett says. “I took it upon myself to read up on some of the different techniques and strategies and educated myself on the one technique that I felt would serve us best.”

Specifically, at Snyder’s Savage they implemented the “work cell” concept. As Barnett explains, for this concept they moved all needed resources as close to the work station as possible.

Automotive Recycling

iStock.com/smshoot

Commodity Recovery

“The more frequent a resource was needed, the closer it is to the work cell. The less frequent the resource was needed, the further it could be from the work cell,” Barnett says. The resources ranged from tools, commodity storage, recovery mechanisms, and the ability to print and quickly access needed paperwork.

“All of this was instituted to minimize movement and save time from the unnecessary walking to and from said resources,” Barnett says. “This allowed the worker to stay in his work cell approximately 90-95% of their work schedule, which ultimately resulted in more efficient production.”

Direct Feeds Made the Difference Greg Condon, president of Condon’s Auto Parts in Westminster, MD, feels that he and his team are still relatively new to the commodity recovery process at Condon’s Auto Parts. “We have always sold cores, but until eight to 10 years ago we only sold them to a local scrap buyer. He then sorted the good ones out and sold them himself,” Condon says. “Now, with the direct feeds to the core companies it is much easier for us to know which product we can profit from if we collect it from the customer at the time of the sale.”

Of course, now that the entire industry is providing cores, Condon points out that the value of many of those cores has noticeably dropped because the supply has risen, making it less and less appealing for the individual salvage yard to collect, document, store, package and ship cores to core buyers.

Condon further points out that the value of many commodities is going down as more recyclers are collecting and selling them – so the breakeven point on the effort is getting higher and higher.

“Even more recently, a lot of the buyers want a documented list of the exact product that is in each box, which drastically increases paperwork and effort on our side,” Condon says. “To combat this we had to raise our minimum price that we collect to resell and what we send to the scrap processor.”

“The other hard thing is transportation costs and the amount needed before it can be shipped,” Condon says.

“Some only require one box and some require a truck load (28 boxes). Depending on the material and the buyer, 28 boxes could take years for some recyclers to collect.”

Profit is in Efficiency So what type of approach does Barnett recommend other recyclers take when evaluating their own processes for efficiency in commodity recovery during the dismantling process?

“Take a look at your facility from above by taking a bird’s eye view. Create an outline of that facility, indicating where your work cells are, and all the needed resources,” Barnett says. Then take some time and actually record the Automotive Recycling

Identify product flow, resources needed, and placement of those resources to accommodate an efficient workflow. travel paths and the number of steps workers are taking to execute their daily responsibilities. Look for way to cut down on the number of steps traveled.

“This is an oddly satisfying task as you’ll start to realize all of the wasted motion inside your facility,” Barnett says.

“After considering the repetitiveness of these tasks and all of the wasted motions, you’ll begin to see how moving some of these tasks, or resources needed for these tasks, closer to the work cell will enable your team to be more productive. Every attempt to reduce the number of steps being traveling is that much more time spent producing.”

For someone still new to collecting core commodities, Condon also recommends auto recyclers make sure to have a clearly defined system for deciding which cores to collect and to which companies they will be sold. This will include a minimum price you gather as well as a minimum quantity needed to ship to each processor.

“If you need to ship 10 boxes as a minimum order but it would take you two years to collect 10 boxes worth of product for that buyer, that is not a realistic timeline,” Condon says. “The prices and demand would change drastically during that time and you might not recover the labor spent.”

As software and other technological advancements infiltrate the auto recycling industry, business owners utilize these programs to help streamline all facets of their commodity recovery processes and procedures.

Barnett says the utilization of the www.urgsalessupport. com website has proven to be a valuable tool for Snyder’s as it enables them to see, at a quick glance, while inventorying the vehicle, or while clearing in the final inventory review (FIR) module, how much is being offered by each core company for each commodity.

“There we can decide based on value, who we want to allocated that commodity to. We can then annotate that in the part comments, which makes for a more efficient flow of the commodity while in dismantling,” Barnett says.

This same concept is also implemented upon the return of the cores from Snyder’s customers. In most cases, they know what cores they will be collecting each day from customers based on that day’s scheduled return merchandise authorizations (RMA).

“In knowing that, then we are able to analyze the core’s value, and who we will allocate it to prior to picking it up,” Barnett says. “This enables us to be able to process and handle the core return more quickly when it arrives at our facility.”

Based in Minneapolis, Minnesota, Maura Keller is a seasoned writer, editor, and published author, with more than 20 years of experience. She frequently writes for various regional and national publications.

November-December 2023 // 27

CONNECTING

THE RESURGENCE OF A

Global Auto Recycling Community Interactions at in-person gatherings as well as the International Roundtable of Auto Recyclers (IRT), allows auto recyclers from across the globe to share ideas and learn from each other.

T

By Steve Fletcher

he global pandemic changed the flow of information moving through the international auto recycling industry – it didn’t stop things, but it did create challenges and opportunities, just like every other industry.

On the opportunity side, the rise of virtual meetings definitely shrunk the world and made interactions easier. In one day, I participated in meetings in London, Ontario (my home base), Poland, Ottawa and Detroit. This would have been impossible without the internet, but Teams, Zoom, etc. make that easy. It’s not as though virtual will ever be a replacement for physical meetings. You can convey information, keep on top of fast-moving agenda, but in the virtual world is tough to create and maintain real relationships – which is critical for auto recyclers and the associations that represent them.

Many associations and groups moved online, most notably the Polish FORS association and their monthly Zoom calls; ARA moving their entire convention online in 2020; virtual training cropping up with Car-Part, the Ontario Auto Recyclers Association tech training series, etc. Some of those will stick and grow, some of them were great efforts in times of need, but will be used much more selectively in the future.

28 // November-December 2023

On the challenge side, the pandemic definitely prevented face-to-face interactions, which is so important in this industry.

In-person events are back on, and those that can achieve a critical mass of delegates, sponsors, vendors and energy are thriving. The recent ARA Convention in Kansas City was a great example, with a wide diversity of global delegates returning. The UK group, championed by Andy Latham and Terry Charlton, once again planned a pre-event tour of many leading auto recyclers across the Midwest, that led to the Kansas City event. This type of in-person, direct contact between auto recyclers, whether you are across the state, country or world, is one of the best ways to learn from one another, and something that makes this industry unique. It’s about recyclers learning from other recyclers.

The International Roundtable on Auto Recycling (IRT) was at the forefront of bringing national associations together, having organized 11 roundtables held approximately every 18 months. From Brussels to Las Vegas, Tokyo, Coffs Harbour, Quebec City, Liverpool, Phoenix, Kushiro, Malacca City, and Niagara Falls, the IRT was generating buzz, anticipation and activity.

The pandemic definitely interrupted that flow, but the apparent demand for global cooperation did Automotive Recycling

From Las Vegas to Toyko, the IRT organized a series of roundtables across the globe every 18 months, until the pandemic curbed those efforts.

not wane. To that end, the IRT is being revitalized with a fresh beginning and a brand new website – www.irt-autorecycling.org.

The IRT serves as a forum for auto recycling associations worldwide to come together and exchange insights on the vehicle recycling industry. Established in 2005 by its founding associations, it has steadily grown in size and has hosted conferences worldwide. These events provide a platform for representatives from various associations to convene, share their expertise and perspectives on vehicle recycling, and establish a global perspective on the significance of auto recycling.

The IRT is not an association per se, but a group of like-minded associations banding together to further the Automotive Recycling

industry. The more IRTs we host, the more we realize that there is a lot in common globally, and a lot of solutions at hand if we just figure out how to collaborate.

The Kushiro Declaration, conceived and published in 2014 sets the over-arching goals of the IRT, covering environmental standards and best practice, public awareness, government policies, manufacturer policies, industry stewardship, education and training, and research and information sharing. These pillars were self-generated after multiple IRTs – there really are common issues that challenge us all.

ARA remains at the heart of the global auto recycling community as the only auto recycling association with a global reach, representation and reputation. ARA leadership have been at all IRTs and attend many other national association meetings, in addition to their participation in a myriad of state and provincial events. Their expertise (and sheer size) make them an important asset.

Membership in the IRT is open to any association representing auto recyclers, and if you are not already a participant, we encourage you to join, as “membership” is free. The new website has a sign up form as it looks to November-December 2023 // 29

The IRT serves as a forum for auto recycling associations worldwide to come together and exchange insights on the vehicle recycling industry. associations, networks, and interested businesses to get onboard. The IRT will never compete with another association, it will always collaborate and enhance.

Now is the opportune moment to reinvigorate the IRT with a redesigned website that will serve as a catalyst for community engagement. The website will facilitate the sharing of news, updates on webinars, and announcements regarding the 2024 conferences and beyond.

Haydn Davies, representing Auto Recycling World, expressed, “The IRT is an invaluable resource for the auto recycling community. We hope that the website's new look will generate interest in the group and serve as a central hub for sharing news from various countries and staying informed about developments in other associations. Furthermore, it will provide a means to stay updated on the program of events scheduled for 2024.”

As Managing Director of the Automotive Recyclers of Canada (ARC), the ARC Board has granted me some leeway in helping to coordinate and maintain some continuity between IRTs, and we hosted the website for years.

When Haydn approached me to revitalize the website, I jumped at the opportunity. Haydn and Auto Recycling World are at the forefront in reporting on global events relevant to auto recyclers. Having him work with the IRT was a great and natural fit.

30 // November-December 2023

The new website contains a news feed section, looking for global stories to enlighten and engage with other recyclers. Please use this feature to submit information and let the world know the great things that are happening in your corner of the auto recycling world. That’s another great way to shrink the world of auto recycling and bring valuable information to the fingertips of other interested recyclers.

Look for postings on the next IRT tentatively planned for 2024 in the UK.

Steve Fletcher is the Managing Director of the Automotive Recyclers of Canada association, an umbrella group of seven recycling associations representing 400 auto recyclers. He is also Executive Director of the Ontario Automotive Recyclers Association, a 180 member industry association. He has been active in the auto recycling industry since 1992. Contact Steve at www.autorecyclers. ca or email steve@autorecyclers.ca.

Automotive Recycling

OPPORTUNITIES

A

N O I S I L L O C OF S T S CO

ustry n repair ind est The collisio igh me of the h , is facing so d a in dec es repair costs avenues w opening ne yclers. re for auto c

By Ryan Ma

ndell

iStock.com/obewon

A

ccording to a 2022 study by the Highway Loss Data Institute, approximately 50% of registered vehicles in the U.S. are equipped with some form of Advanced Driver Assistance Systems (ADAS)1. Collision repairers are now faced with the challenge of not only diagnosing disruptions in these systems but also ensuring they are brought back to pre-loss functionality. Additionally,

32 // November-December 2023

a greater percentage of sheet metal parts are being constructed of lightweight substrates that present technicians with fewer opportunities to repair a part, and therefore increasing the likelihood of part replacement.

These changes in the vehicles themselves, coupled with double digit inflation in the cost of materials, labor, and parts means that we have seen the highest year-over-year increase in the average cost of repair in recent memory.

Automotive Recycling

Auto recyclers are well positioned to capitalize on these trends to increase revenues and provide solutions to the collision repair industry.

An analysis of Mitchell estimatics data from the first half of 2023 shows an 8.49% increase compared to the same time period in 2022. When we examine the full calendar year 2022 we find a similar increase of 9.29% compared to 2021. One of the primary factors driving this growth is an increase in the number of parts being replaced as well as the average cost per part. For the last several years, the percentage of repair cost devoted to parts has continued to increase, to the point where in the first half of the year, parts accounted for more than 51% of the average total gross estimate. The average number of replacement parts written on an estimate has grown from 11.5 parts per estimate in 2020 to 13 in 2023 with an average cost per part of $190.

Much of this increase can be attributed to the greater ubiquity of ADAS on repairable vehicles which will only continue to increase as the average model year of vehicles in repair facilities continues to move right. Currently, the average model year of a repairable vehicle is 2016, however model years 2018 and 2019 represent the highest volume of repairs in 2023. By 2025 the average model year will have increased to 2018 which we find to be a watershed year when it comes to the increase in the availability of ADAS. As a result of this expected increase in demand along with broader goals for sustainability, many OEMs are expanding their remanufactured parts programs.

Auto recyclers have a unique opportunity to tap into this value chain as a provider of “technological cores,” ADAS components such as sensors that are difficult to sell to the collision market today. Partnering with an OEM, however, creates a sales channel for these parts and allows the manufacturer to recondition them and provide a more cost-effective solution for repairers and the insurance carriers paying the bill. Vehicle manufacturers recognize the relationship between the collision repair experience and the overall image of their brand and subsequently their bottom line. Improving repair costs helps OEMs reduce the percentage of their vehicles that are written off as total losses, thereby improving their parts sales opportunities as well as preventing a situation where a consumer has the chance to switch brands of vehicle.

As mentioned above, the uses of lightweight substrates in automotive manufacturing continues to increase, to the point where an analysis of estimates written in 2023 showed that 23.26% of sheet metal replacement parts were identified as a lightweight material. This percentage is up from 21.94% the previous year. The frequency of part replacement increases significantly when the part is constructed of a material other than mild steel. In 2023, mild steel parts were repaired 56.84% of the time compared to only 46.93% for lightweight parts. Typically Automotive Recycling

Currently, the average model year of a repairable vehicle is 2016, however model years 2018 and 2019 represent the highest volume of repairs in 2023. when a manufacturer transitions from mild steel to a lightweight substrate for a particular part, we see about a 10 percentage point drop in the frequency of repair of that part. We expect this trend toward lighter weight construction to continue as automakers look to improve fuel economy for their internal combustion engine (ICE) vehicles and work to offset the weight of high voltage batteries in electric vehicles (EVs). This trend is evident when we delve further into the replacement parts data cited earlier and analyze the data by model year. The percentage of parts identified as lightweight has risen from 19.43% in model year 2015 to 28.39% in model year 2023.

As a greater volume of parts are being replaced, so too are supply chains becoming more strained. The last few years have seen unrivaled disruptions in the procurement of auto parts, ranging from the lack of supply of semi-conductors to ocean-going cargo cost volatility to the recent United Auto Workers (UAW) union strike. Auto recyclers must be prepared to step in to help solve these challenges and capitalize on the opportunity before them. Now, more than ever, accuracy, timeliness, and quality are critical.

Standard processes and procedures can be implemented to achieve these goals, including but not limited to: 1. TARGETED INVENTORY AUDITS – Ten days after a vehicle has been initially inventoried, a certain percentage of vehicles should undergo a reinspection from a member of the management team as a form of checks and balances to ensure appropriate condition grading and consistency of parts availability. This should also be done EVERY time after a cut is made to a vehicle in inventory.

2. DEVELOP INTERNAL AND CUSTOMER FACING KPIS – The creation of Service Level Agreements (SLA’s) with larger corporate accounts will create transparency and brand reputation while allowing management to track internal performance regarding order processing times, return rates, and resupply frequency.

3. QUALITY CONTROL CALIBRATION – When a part is rejected by quality control, involve management and all inventory technicians to perform a gap analysis that identifies any potential errors in the inventory process or in the protection of the part while it was in inventory.

Every mistake should produce learnings to help make the business better and prevent future breakdowns in established processes.

At the forefront of this automotive evolution toward costlier repairs and more frequent parts replacement are EVs. The frequency of EVs as a percentage of repairable November-December 2023 // 33

auto claims in 2023 has risen to over 1.5%, an increase of three times over the past three years! In the most recent EY Consumer Mobility Index, nearly 50% of U.S. consumers surveyed indicated they would prefer to purchase an EV or a plug-in hybrid for their next vehicle2. And while much has been made about EVs having fewer moving parts than ICE vehicles, this same trend does not apply to collision crash parts. In fact, on average, EVs require nearly twice the number of individual replacement parts as ICE vehicles3. Couple this with the fact that only about 10% of those replacement parts are sourced from a supplier other than the OEM, and we realize this is a sizable opportunity for the auto recycling industry, especially as aftermarket manufacturers are still in the very nascent stages of being able to meet the coming demand.

While it may feel that the industry has been inundated with change and complexity over the past five years, we must take a step back and realize that we are still in

the early innings of disruption. Vehicles will continue to evolve in myriad aspects from connected technologies, construction, and propulsion. Each of these trends is integral in the shaping of a new landscape for the auto recycling industry recyclers that recognize these shifts in the car part and strategize how to optimize their businesses to meet the demands and create solutions for repairers are the ones that will find success.

Ryan Mandell is Director of Performance Consulting at Mitchell International. He engages with auto insurance carriers to analyze claims data and identify opportunities for performance improvement. He also works with claims executives to develop action plans to optimize such opportunities and see them through to fruition, and provides continuing consultation to insurance carriers on the most up-to-date trends in the automotive industry. Prior, he worked at Autowrecking. com/B&R Auto Wrecking and with Precision Collision Auto Body.

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.iihs.org/media/5cd18525-83b0-421e-8ee7-d0c3f9ebb262/vOHNyw/HLDI%20Research/Bulletins/ hldi_bulletin_39-02.pdf 2 https://www.ey.com/en_us/news/2023/06/ey-research-nearly-half-of-us-car-buyers-intend-to-purchase-an-ev 3 https://energyright.com/ev-draft/how-do-an-evs-components-compare/ 1

34 // November-December 2023

Automotive Recycling

iStock.com/Urupong

SECURITY

Protecting Yourself Against

CYBER THREATS Cyber crime takes many forms, so it’s important to understand current trends and how to protect yourself, your employees, and your business.

W

By Carrie Kerskie

ith how much we rely on technology throughout our everyday lives, it’s no surprise that staying safe online has become more important than ever. However, millions of individuals are still finding themselves victims of fraud every year. Considering this is a problem that’s only going to grow exponentially worse, it’s frightening to think that there aren’t any obvious solutions – or are there?

As humans, we are constantly looking for convenient ways to fix or avoid our issues, a concept that applies to the world of cybersecurity. Contrary to what many of us have been led to believe, today’s cyberthreats can’t be avoided by installing an anti-virus or using a VPN. At its core, cybersecurity is an issue deeply intertwined with human behavior and cannot be conveniently rectified solely through technological means. This becomes

36 // November-December 2023

apparent when looking at situations where individuals find themselves victimized by cybercriminals. Notably, when victims inadvertently fall for a scam, whether through phone calls, link clicks, or downloading malicious programs, they are doing so under their own free will, oblivious to the danger they are in. Identity thieves have mastered the art of fraud and deception, and their entire goal is to exploit innocent people without them ever noticing.

But in the face of these unforeseen threats and the everevolving landscape of cyberattacks, how can we effectively help people recognize and avoid potential danger before they become another victim?

The answer really is quite simple, and that’s by increasing our awareness of these threats and how they work. As stated above, there is no single convenient solution to completely negate the risk we come across online, and for that reason it’s worth understanding what you’re up against. Many organizations have tried to accomplish Automotive Recycling

this by mandating their employees take annual awareness training programs; however, these programs often fall flat due to their limitations: such as their inability to address a wide variety of threats. A significant factor contributing to an individuals’ vulnerability to scams is their limited awareness of what cybercriminals are capable of and the diversity of threats online. This lack of understanding leaves them exposed to the devious tactics employed by malicious actors, who exploit these knowledge gaps.

To give you an example of how complex scams have become and to demonstrate the importance of awareness, here’s one attack that’s been taking advantage of Facebook users in 2023.

Facebook Login Attack What Is It? This attack is comprised of two distinct tactics that work together to confuse and cause panic in victims. The initial assault is a straightforward attempt to “hack into” and take control of an individual's Facebook account.

In this phase, cybercriminals use previously leaked email addresses to initiate a password reset. By initiating this password reset, this will send a legitimate email to the Facebook user’s inbox.

The second part of this attack occurs strictly over email and revolves around a phishing email created by criminals that looks identical to the one sent out during the password reset mentioned above. This email will contain a malicious link stating “Click here to secure your account” that will redirect users to a realistic looking Facebook login screen. However, attempting to log in will only send criminals your log-in credentials.

So, on one side, you have an email informing you that hackers are trying to break into your account. On the other side, these same cybercriminals are sending you a deceptive email with a malicious link. In the eyes of the average person, both types of emails are practically indistinguishable from one another.

How Does It Happen?

Facebook users are already a popular target for cybercriminals because of the numerous data breaches and privacy leaks the social media platform has had over the years. Criminals are merely using the information they’ve stolen in previous breaches (emails, usernames, phone numbers) and attempting to trick users into giving out sensitive credentials.

How Can It Impact You? It’s not only important to be aware of the attacks and how they work, but also the impact they can have on you.

You may be wondering, “What do criminals have to gain by taking over my social media account?” Having a general idea of why criminals do what they do is integral to avoiding their scams and knowing how to react to suspiAutomotive Recycling

It’s been said that anti-virus software detects around 8% of viruses. You read that right, 8%.

That doesn’t mean you should stop using these programs. It just means that they don’t offer that complete level of protection that people have come to expect from them.

cious emails. One thing to note, how much is at risk differs between individuals based on how much information they have connected to their account.

There is a lot more value in a Facebook profile linked to a business page than just an individual profile. For instance, some social media accounts are used to advertise a business and can have payment information linked to purchase ads. Criminals can exploit this by buying ads that promote malicious links used to collect more personal data from innocent people that click on the ads.

Not only will this harm the user with the hacked account, but it will also tarnish their business/accounts reputation.

At the very least, having a social media account taken over will result in the collection of any and all information connected to the compromised user’s account including that of family or friends. Criminals will also use hacked accounts to send malicious messages, through messenger, to as many random individuals as possible in the hopes of compromising them too. They may also post malicious links to your timeline.

How To Protect Yourself The first step to protect yourself is by being aware that this type of attack can exist. Knowing that criminals are capable of replicating legitimate emails is a crucial piece of knowledge to have. Without questioning the legitimacy of an email, it can lead to you making rash decisions.

The second step is to remember a simple rule: “Validate or eliminate.” If you can’t validate, or confirm, the information in the email to be true without clicking on the links, downloading the attachment, or calling the number contained in the email, then eliminate it. We’ve all heard of a rule similar to this before, yet when it matters most, we seem to completely forget or ignore it. Until you click, call, or respond to the contents of a phishing email, the criminals cannot do you any harm. If you cannot validate the information from the original email, it’s time to eliminate it. You can safely do this by deleting the email knowing that your account is still secure without risking any dangerous interactions.

For the last step, it’s crucial you take the time to simply log-in to the account associated with the contents of the November-December 2023 // 37

email. Make sure you log in via a mobile app or by visiting the website directly, NOT by clicking on any links in the email. In this case, logging into Facebook would reveal that your credentials still work and that criminals have not taken over your account. While logged in you could also validate the account profile information is correct as well as check for any suspicious activity.

As an added precaution, it’s also a good idea to change your password after you’ve been in an unusual situation like this – especially if you use a password that is less than 12 characters, or it’s been more than a year since you changed it. Each year a password goes without being updated increases your account’s risk of being compromised grows exponentially. This is especially true for massive web platforms like Facebook where data breaches are happening on a regular basis.

Just One of Many Unfortunately, this is merely one of countless examples within the vast realm of cyber threats. How are you supposed to keep up with the ever-changing threat landscape?

As previously mentioned, technological “solutions” to cyberthreats like anti-virus, phishing detection tools, or VPNs offer limited protection and often only help to notify you of an attack after you’ve been affected by one.

38 // November-December 2023

It’s been said that anti-virus software detects around 8% of viruses. You read that right, 8%. That doesn’t mean you should stop using these programs. It just means that they don’t offer that complete level of protection that people have come to expect from them.

But until the media, corporations, or businesses start updating everyone on these issues, here are some better options to keep yourself informed: 1. Find a trusted source, such as a newsletter, podcast, or blog, that keeps you advised of the latest threats and how to avoid them.

2. Remember the simple rule of “Validate or Eliminate.”

This can be applied to emails, phone calls, text messages, or letters you may receive in the mail.

Awareness isn’t about memorization every scam. It’s about staying informed so you can respond properly when faced with the next cyber threat.

Carrie Kerskie is president of the Kerskie Group LLC, founded in Naples, Florida in 2021 originally for private investigation. Many of her clients experienced identity theft, and then cyber attacks, which led to her current work for more than 15 years on identity protection, risk management, and restoration services. She is a professional speaker, author and is highly recognized for her work.

Visit carriekerskie.com for more information.

Automotive Recycling

INTERVIEW

NOW & THEN

Legacy recyclers share their history to honor 80 years of automotive recycling.

Compiled by ARA Staff The Automotive Recyclers Association is celebrating 80 years of protecting the industry.

In light of this industry milestone, we are seeking legacy recyclers in business 25 years or longer to share their story with Automotive Recycling to celebrate their part in our unique history.

If you have a 25+ Legacy Story to share, there is still time to participate in a future issue.

Please send no more than 100 words – such as when the business started, original owners’ names, current owners, short description of the business and its history – along with high-resolution images to ARAEditor@comcast.net.

On the Spacecoast about 5 miles from Kennedy Space Center (as the crow flies). We never miss a launch.

Quarno’s Auto Salvage est. 1969 COCOA, FL

oa, FL 32927 550 Quarno Road. Coc

Automotive Recycling

Ernest Quarno Sr. started the business in January 1969 with his sons Ernest Jr. and Ronnie Quarno. After the passing of both Ernest Sr. and Jr. in 1983 and 1993 respectively, Ronnie took over. In 1996, Ronnie's son Tony started full time in the business and took over after Ronnie's retirement in 2012. Anthony Quarno, grandson of Ernest Jr., began working in the business full time in 2020, and will take over upon Tony's retirement. Over time, the yard has grown from five to 25 acres. Quarno's prides itself on fair prices and exemplary customer service.

November-December 2023 // 39

Chuck's Auto Part Solutions est. 1972 DOUGLASSVILLE & YORK, PA Doug and JR Reinert are proud to be a thirdgeneration family business with a team of 108 amazing men and women in an industry that is so willing to share information for the success of each other. Chuck’s Auto Salvage was established in April 1972 when Chuck and Lois Reinert purchased a 1.5-acre facility as an empty lot at in Douglassville, Pennsylvania. Their primary focus is to provide quality parts, delivered on time, as described to wholesale customers in PA, DE and MD while still serving the local community and shipping parts worldwide.

New shipping and receiving area, 2021.

40 // November-December 2023

In 1964, Formerly Forces garage went out of business and we purchased as an empty lot in 1972 (above, left).

1975 front lot (above, right).

New driveline and fluid containment building.

Automotive Recycling

MEMBER BENEFITS IN ACTION — Take advantage of these programs in 2024!

MEMBER BENEFITS IN ACTION — Take advantage of these programs in 2024!

MEMBER BENEFITS IN ACTION — Take advantage of these programs in 2024!

MEMBER BENEFITS IN ACTION — Take advantage of these programs in 2024!

Advertiser’s Index Company.........................................................................................................Website..........................................................................Ad Pg. No. Amwins Program Underwriters.................................................. amwins.com/apu............................................................ 17 ARAU............................................................................................... arauniversity.org/arau-howto...................................... 44 ARA Benefits the Industry........................................................... a-r-a.org/member-benefits.html................................. 41 ARA Certification........................................................................... aracertification.com....................................................... 42 ARA Mentorship............................................................................ a-r-a.org.......................................................................... 43 Buddy Automotive Innovations...............................................buddyai.com.................................................................35 Carolina Wheel Cover...............................................................ineedahubcap.com......................................................34 Car-Part.com...............................................................................car-part.com.................................................................BC Copart...........................................................................................copart.com/autorecyclers........................................... 15 CRUSH/S3 Software Solutions, LLC........................................s3softwaresolutions.com............................................. 7 Dorman Products, Inc................................................................dormanproducts.com.................................................... 5 ETE REMAN................................................................................... etereman.com................................................................. 31 Gensco............................................................................................ genscoequip.com/auto-recycling-equipment............ 25

Advertise!

Contact Caryn Smith and Jay Mason for your Customized Marketing Plan to reach ARA Member decision-makers with your advertising!

Induction Innovations...............................................................theinductor.com........................................................... 21 Lithion..........................................................................................lithiontechnologies.com.............................................13 MarkingPenDepot.com..............................................................markingpendepot.com................................................38 Midwest Gas...............................................................................midwestgas.us.............................................................34 PMR..............................................................................................pmrcc.com....................................................................IFC Redwood Materials....................................................................redwoodmaterials.com................................................. 9 Supershear..................................................................................supershears.com........................................................ IBC Vander Haag’s, Inc.....................................................................vanderhaags.com........................................................45 We Buy Key Fobs...........................................................................webuykeyfobs.com....................................................... 19 Wolfpack Enterprises.....................................................................wolfpack-enterprises.business.site............................ 38

Call (239) 223-9408 or email jay@drivenbydesign.net

Calendar

Send Your Event Info to staff@a-r-a.org!

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STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION 1. Publication Title: Automotive Recycling 2. Publication Number: 1058-9376 3. Filing Date: November 7, 2023 4. Issue Frequency: Bi-monthly 5. Number of Issues Published Annually: Six 6. Annual Subscription Price: $40.00 7. Complete Mailing Address of Known Office of Publication (not printer): Automotive Recyclers Association, 9113 Church St., Manassas, VA 20110-5456 8. Complete Mailing Address of Headquarters or General Business Office of Publisher (not printer): 9113 Church St., Manassas, VA 20110-5456 9.

Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher (Name and Complete Mailing Address) Sandy Blalock, 9113 Church St., Manassas, VA 20110-5456; Editor (Name and Complete Mailing Address) Caryn Smith, 8580 Sumner Ave., Ft. Myers, FL 33908 10. Owner: Automotive Recyclers Association, 9113 Church St., Manassas, VA 20110-5456 13. Publication Title: Automotive Recycling 14. Issue Date for Circulation Data Below: October 10, 2023 15. Extent and Nature of Circulation: Average No. Copies Each Issue During Preceding 12 months: a. total Number of Copies (net press run) 1048, b. Paid and/ or Requested Circulation (Paid/Requested Outside-county Mail Subscriptions Slated on Form 3541) 998, c. Total Paid and/or Requested Circulation: 998, d. Free Distribution by Mail (Outside County as Slated on Form 3541): 50, e. Free Distribution Outside the Mail (carriers or other means): 50, f. Total Distribution: 1048 g. Copies not Distributed: 0, h. Total: 1048, i. Percent Paid and/or Requested Circulation: 95%. Actual No. Copies of Single Issue Published Nearest to Filing Date: a. Total Number of Copies (net press run) 1200, b. Paid and/or Requested Circulation (Paid/Requested Outside-county Mail Subscriptions Slated on Form 3541) 1091, c. Total Paid and/or Requested Circulation: 1091, d. Free Distribution by Mail (Outside County as Slated on Form 3541): 80, e. Free Distribution Outside the Mail (carriers or other means): 80, f. Total Distribution: 1171, g. Copies not Distributed: 29, h. Total: 1200, i. Percent Paid and/or Requested Circulation: 93% 16. Publication of Statement of Ownership will be printed in the November/December 2023 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: Sandy Blalock, Managing Editor.

Automotive Recycling

November-December 2023 // 45

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2023 AWARD WINNERS

ARA announced the 2023 Award Winners at the 80th Anniversary Convention & Expo in October. (Clockwise) Novak Auto Parts accepted the ARA Certification Award, Mike Kunkel was given the President’s Award, Mike French was given the Lifetime Achievement Award, and Slater Shroyer was named the ARA Member of the Year. All awardees were surprised by the honor, giving emotional and heartfelt thanks to their peers and the ARA for the recognition. See the full convention story in January-February 2024!

46 // November-December 2023

Automotive Recycling

® – Recycled Original Equipment ®

9113 Church Street Manassas, VA 20110-5456 USA