conscious generations are likely to support the recy- cling industry’s green credentials. Even the entrance of new vehicles from companies like Tesla, they want to manufacture cars economically and will source parts from common manufacturers much like they do now. The value Hollander brings is interchange- ability, and we are making investments in continuing to grow and lead the industry in this information.”
The Digital Workplace Once, your best employee liked to tinker with cars,
and had a real knack for making broken gadgets work again. Your new best employee might be better suited at tinkering with computers or an ace in software. As the Boomer generation ages out of the workforce, 50% of the workforce is soon to be Millennials. Generally, they are socially and digitally connected and enjoy electronic programmable toys. With train- ing, your current Boomer and GenX workforce will transition with car technology, and just about the time these new-tech cars hit full steam ahead, you are likely to have a Millennial staff ready for the challenge. Safety and training will be a priority as more and more cars are hybrid, and less are gas dependent. As you know, the dismantling of electric and hybrid vehicles is a significantly different process. Your team must know how to safely handle highly-volted cars. But the real dollars could be made in creating a business model that supports the recycling of elec- tronic and digital parts. Your team will need to know how to handle these new parts, and how to store them. They need to know what photos to post, how to describe them, and, looking to the Automotive Recyclers Association or others, how to grade them. With scrap metal prices low,andnewmetals creating fewer ways to recycle crashed body parts, the modern automotive recycling yard may have a smaller foot- print, and focus totally on electronics, sensors, cameras, and other high-end parts interior/exterior parts. With many of these parts programmable, someone
will have to reprogram them for a new car. That is a void that automotive recyclers could potentially fill. Electronic parts will not be crushed like metal and put into landfills. The marketplace will expect that theseparts are responsibly handled. “The automotive recycling industry already carries the reusability car- bon footprint green flag,” says Arfi. “We need to cel- ebrate this green potential.” The potential for after-market life of certain parts is also a business model waiting to happen. “The battery packs in hybrid and all electric vehicles have serious environ- mental consequences if not recycled appropriately. Our industry could drive a secondary use of these
The next-gen auto recycler is likely to use a computer rather than a blow-torch to perform their work.
battery packs in non-auto use, like residential or commercial sources of back-up power,” says Arfi. “Recycling changes with technology. What if the power pack became a power source in a home, run- ning a generator or some other need for energy?” The opportunities are out there and our auto recy- cling industry is again at the cusp of change. The
Forbes.com article, “Future Of Automotive Aftermarket And Car Servicing: Consumers Will Have More ChannelsTo Shop Around,” says “there will be a rise in ecommerce for auto parts. Online business-to- consumer sales of automotive parts and accessories alone are expected to become a $20 billion business by 2020 in North America and Europe – an estimated 9- 10% penetration rate within overall aftermarket. While Western markets will drive the transaction volume, emerging markets like China and Brazil will see explo- sive growth. Online pure players have found initial suc- cess targeting consumers with maintenance parts (filters, lubes, etc.) and tires. However, the litmus test for the longevity of these participants will be selling to business customers such as garages and fleets.” The question remains, how will automotive recy-
clers have a seat at that table of business? It is a reality to consider. Overall, the car is changing, fast and furious. Getting perspective and given enough ideas for new opportunities, auto recyclers can find more profit in the future with high-end parts recycling, maybe even transforming their scrap metal deficit with profitable sensory overload. Literally. Caryn Smith is the editor of Automotive Recycling magazine.
November-December 2016 | Automotive Recycling 37
iStockphoto.com/Minerva Studio
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