Where will the salvage market be in 10 years time? Don’t know is the honest answer, but allow me to predict that more cars will be removed from use, dismantled and broken; and make at least one recommendation that will benefit all motor salvage and auto recycling businesses.
Why will more vehicles be broken?
Well the continued efforts of manufacturers to reduce vehicle weight will continue, resulting in increased use of different and high strength metals that are more effective in protecting vehicle occupants, but more difficult to repair following an accident.
Manufacturers will continue to ignore the repairability of their vehicles and focus on how to make the vehicle easier to build.
As an example, laser welding is impossible to replicate in a repair situation, but is increasing in use on production lines. This increases the cost of repair and raises the potential that the vehicle will be written-off because repair is not possible.
The increase in the amount of electrical systems on vehicles seems to be gathering pace, so cars that are 5-7 years old in the future will be almost obsolete as new vehicles come on the market with ever better control systems, user interfaces and connectivity. Residual values will drop rapidly, when combined with increased repair cost and lack of demand for older vehicles will mean that more will end up as end of life vehicles.
This could lead to considerable change in the salvage market, less focus on vehicles being repaired will mean that more vehicles will need to be dismantled and recycled.
Meeting various recycling targets will become more difficult, especially as the amount of electrical components in vehicles increases, and more legislation will have to be considered as Authorised Treatment Facilities dispose of waste electrical equipment, .
This is where membership of a strong trade body or salvage association is so important, these organisations can advise and assist their members to prepare and change to meet the new challenges, they can also lobby at government level to ensure legislation is sensible and reasonable, that it does not disadvantage legitimate businesses operating within the law, and they can also work with local and national agencies to force non-compliant and illegal sites to clean up or close.
Support your salvage association, use events to network with other members, discuss the future and what this could mean to you, your business, your family and employees, and then work together to make your business viable for the future.
Salvage Wire
Helping Automotive recyclers become leaders in their industry
Showing posts with label Auto Recycling. Show all posts
Showing posts with label Auto Recycling. Show all posts
Tuesday, 5 July 2011
Monday, 20 June 2011
Premature End of Life Vehicles
By their definition Premature ELV’s are vehicles that have not survived the expected life span of 12-15 years that most vehicle manufacturers build into their vehicles.
The reasons for this can be many, however I suspect that most will be due to accident, fire, flood or other events that result in an insurance claim.
Insurance engineers completing vehicle inspections need to determine if the vehicle could be repaired economically; if repair is not viable, then vehicles need to be dealt with as salvage and the inspecting engineer must determine if the vehicle is safe to repair, or must it be removed from use?
One of the most important decisions that an engineer makes is deciding if the vehicle ‘could’ or ‘should’ be repaired; the Engineer needs to know the extent of damage, potential method of repair and availability of parts.
Knowledge of vehicle construction is very important here, especially as manufacturers try to save weight whilst developing stronger vehicle bodies, the greater use of high strength steel makes repair increasingly difficult and any motor salvage inspection needs to balance repair potential against passenger safety – in other words, can any professional engineer signing a vehicle write-off report confirm that the vehicle could be repaired to a standard that would maintain occupant safety in the event of another accident.
Developed over many years the Association of British Insurers (ABI) Code of Practice for Motor Salvage assists the decision making process when inspecting vehicles in the UK that are written-off.
The ABI code has four categories of salvage that are:
• Category A. Scrap vehicles, good only for the shredder and metal recycling
• Category B. Break only – bolt on parts can be re-used, but the vehicle structure is so badly damaged that this must be removed from use and destroyed.
• Category C. Repairable Salvage – repairs using normal methods of insurance repair (brand new parts, manufacturer labour) exceed the value of the vehicle, however cheaper labour, second hand parts, or ignoring ‘cosmetic’ damage means that the vehicle could be repaired in the salvage industry.
• Category D. Constructive Total Loss – where the repair cost of the vehicle when added to other costs, such as loss of use, or the value of the salvage, exceeds the value of the vehicle, then insurers can decide to treat the vehicle as a write-off and minimise their costs. As an example, a £10,000 vehicle with £8,000 worth of damage may return £3,000 salvage, so a settlement of £10,000 less £3,000 salvage return gives a final outlay of £7,000 against the claim. Less than the assessed repair cost of £8,000.
There are a number of factors that need to be reviewed when inspecting potential write-offs, including type of damage, repair required to maintain occupant protection, and availability of parts; a few examples are detailed below.
Flood Damage.
Factors to consider include type of water – fresh, salt or contaminated (sewage), height of water, and length of time in water.
Current trends towards increasingly complex electronics will mean that any salt water damage will render the vehicle unrepairable, and if a vehicle has been submerged to a significant depth – for example water high enough to contaminate air bags) then the vehicle should be removed from use.
Fire Damage.
Excessive heat removes the strength from High Strength Steel, so fire damage to structural areas of newer vehicles is serious, I would contend that, unless the damage is very localised, all fire damaged vehicles should not be repaired.
Parts Availability.
A vehicle severely structurally damaged where parts are not available should not be repaired, releasing one of these vehicles into the motor salvage market for repair could lead to a substandard repair being completed and the general public being put in danger as an unsafe vehicle is in use. Engineers need to know what parts are available from the vehicle manufacturers and any safeguards they put in place. For example, many manufacturers place controls on the supply of replacement bodyshells that could result in these not being available to the salvage industry, thus compromising a safe repair on motor salvage.
In summary, all motor engineers inspecting vehicles for insurance repair need to be fully aware of current vehicle design and construction, they need to know repair techniques for all types of vehicles, and also decide if a salvage vehicle can be safely repaired and placed back into use.
And we haven’t started on electric vehicles yet!
A copy of the ABI Code of Practice for Motor Salvage can be downloaded from http://www.abi.org.uk/Information/Codes_and_Guidance_Notes/General_Insurance_Codes_and_Guidance_Notes.aspx
The reasons for this can be many, however I suspect that most will be due to accident, fire, flood or other events that result in an insurance claim.
Insurance engineers completing vehicle inspections need to determine if the vehicle could be repaired economically; if repair is not viable, then vehicles need to be dealt with as salvage and the inspecting engineer must determine if the vehicle is safe to repair, or must it be removed from use?
One of the most important decisions that an engineer makes is deciding if the vehicle ‘could’ or ‘should’ be repaired; the Engineer needs to know the extent of damage, potential method of repair and availability of parts.
Knowledge of vehicle construction is very important here, especially as manufacturers try to save weight whilst developing stronger vehicle bodies, the greater use of high strength steel makes repair increasingly difficult and any motor salvage inspection needs to balance repair potential against passenger safety – in other words, can any professional engineer signing a vehicle write-off report confirm that the vehicle could be repaired to a standard that would maintain occupant safety in the event of another accident.
Developed over many years the Association of British Insurers (ABI) Code of Practice for Motor Salvage assists the decision making process when inspecting vehicles in the UK that are written-off.
The ABI code has four categories of salvage that are:
• Category A. Scrap vehicles, good only for the shredder and metal recycling
• Category B. Break only – bolt on parts can be re-used, but the vehicle structure is so badly damaged that this must be removed from use and destroyed.
• Category C. Repairable Salvage – repairs using normal methods of insurance repair (brand new parts, manufacturer labour) exceed the value of the vehicle, however cheaper labour, second hand parts, or ignoring ‘cosmetic’ damage means that the vehicle could be repaired in the salvage industry.
• Category D. Constructive Total Loss – where the repair cost of the vehicle when added to other costs, such as loss of use, or the value of the salvage, exceeds the value of the vehicle, then insurers can decide to treat the vehicle as a write-off and minimise their costs. As an example, a £10,000 vehicle with £8,000 worth of damage may return £3,000 salvage, so a settlement of £10,000 less £3,000 salvage return gives a final outlay of £7,000 against the claim. Less than the assessed repair cost of £8,000.
There are a number of factors that need to be reviewed when inspecting potential write-offs, including type of damage, repair required to maintain occupant protection, and availability of parts; a few examples are detailed below.
Flood Damage.
Factors to consider include type of water – fresh, salt or contaminated (sewage), height of water, and length of time in water.
Current trends towards increasingly complex electronics will mean that any salt water damage will render the vehicle unrepairable, and if a vehicle has been submerged to a significant depth – for example water high enough to contaminate air bags) then the vehicle should be removed from use.
Fire Damage.
Excessive heat removes the strength from High Strength Steel, so fire damage to structural areas of newer vehicles is serious, I would contend that, unless the damage is very localised, all fire damaged vehicles should not be repaired.
Parts Availability.
A vehicle severely structurally damaged where parts are not available should not be repaired, releasing one of these vehicles into the motor salvage market for repair could lead to a substandard repair being completed and the general public being put in danger as an unsafe vehicle is in use. Engineers need to know what parts are available from the vehicle manufacturers and any safeguards they put in place. For example, many manufacturers place controls on the supply of replacement bodyshells that could result in these not being available to the salvage industry, thus compromising a safe repair on motor salvage.
In summary, all motor engineers inspecting vehicles for insurance repair need to be fully aware of current vehicle design and construction, they need to know repair techniques for all types of vehicles, and also decide if a salvage vehicle can be safely repaired and placed back into use.
And we haven’t started on electric vehicles yet!
A copy of the ABI Code of Practice for Motor Salvage can be downloaded from http://www.abi.org.uk/Information/Codes_and_Guidance_Notes/General_Insurance_Codes_and_Guidance_Notes.aspx
Saturday, 11 June 2011
Car Merchandising Recycling
As manufacturers constantly change their sales publicity many car dealers face increasing costs to dispose of obsolete posters, brochures and car display materials.
Salvage Wire are proud to offer a free of charge recycling service for all car posters, brochures and car display materials to car dealers and manufacturer agents.
All you have to do is phone or e-mail Salvage Wire and we will arrange free of charge collection of your unwanted posters, brochures and car display materials, saving you the time and cost of disposal.
Salvage Wire are committed to ethical recycling and will process each item to full environmental standards.
We look forward to your request, and please do not hesitate to contact us if you have any questions.
Salvage Wire are proud to offer a free of charge recycling service for all car posters, brochures and car display materials to car dealers and manufacturer agents.
All you have to do is phone or e-mail Salvage Wire and we will arrange free of charge collection of your unwanted posters, brochures and car display materials, saving you the time and cost of disposal.
Salvage Wire are committed to ethical recycling and will process each item to full environmental standards.
We look forward to your request, and please do not hesitate to contact us if you have any questions.
Monday, 6 June 2011
Certificate of Technical Competency
You have been in the auto recycling business since you finished school, your children have been brought up in the business and their children are of an age where they want to finish school and come and join you, and the Environment Agency are now asking you to take a test to prove your competent to operate a recycling yard.
You are probably thinking what do they know about running a salvage yard that I don’t?
Well, the bad news is that Technical Competency is here to stay; the good news is that it is not too difficult once you know how the testing procedure works and have received a little bit of training.
There are three elements to the test, the generic module and then two activity specific modules that most End of Life Vehicle sites should be taking.
The Generic module looks at three areas:
• The Law – this includes Waste Carriers, Environmental Permitting, Hazardous Waste Controls and so on.
• Health and Safety – Equipment, Manual Handling, People on Site etc.
• Environmental Protection – for example - Drainage, Bunding, Liquid Containment, spillages, etc.
This part of the test is 20 questions with multi-choice answers.
The activity specific modules focus directly into such areas as End of Life Vehicles, Metal Recycling, Waste transfer Station and so-on, and these are 6 questions for each, again with multiple choice answers.
It is best to work with professionals in this area to determine the exact modules required and the training needed to pass the Technical Competency tests, both UK motor salvage federations are offering training to their members, so their web sites would be a good place to start, www.mvda.org.uk and www.bvsf.org.uk , you could also work with your local Environment Agency office to determine what is required, as the modules detailed above are only suitable for members of staff with considerable experience of running auto recycling operations, and newer staff may be required to complete more intensive training and development before being technically competent.
If you are based outside of England and Wales then there is currently no requirement for you to hold this qualification, so you can watch with interest as your colleagues work through these tests, however if you are based in England and Wales you cannot ignore the requirements, without a Certificate of Technical Competence the Environment Agency could revoke your Waste Management Licence or Environmental Permit with major consequences on your business.
You are probably thinking what do they know about running a salvage yard that I don’t?
Well, the bad news is that Technical Competency is here to stay; the good news is that it is not too difficult once you know how the testing procedure works and have received a little bit of training.
There are three elements to the test, the generic module and then two activity specific modules that most End of Life Vehicle sites should be taking.
The Generic module looks at three areas:
• The Law – this includes Waste Carriers, Environmental Permitting, Hazardous Waste Controls and so on.
• Health and Safety – Equipment, Manual Handling, People on Site etc.
• Environmental Protection – for example - Drainage, Bunding, Liquid Containment, spillages, etc.
This part of the test is 20 questions with multi-choice answers.
The activity specific modules focus directly into such areas as End of Life Vehicles, Metal Recycling, Waste transfer Station and so-on, and these are 6 questions for each, again with multiple choice answers.
It is best to work with professionals in this area to determine the exact modules required and the training needed to pass the Technical Competency tests, both UK motor salvage federations are offering training to their members, so their web sites would be a good place to start, www.mvda.org.uk and www.bvsf.org.uk , you could also work with your local Environment Agency office to determine what is required, as the modules detailed above are only suitable for members of staff with considerable experience of running auto recycling operations, and newer staff may be required to complete more intensive training and development before being technically competent.
If you are based outside of England and Wales then there is currently no requirement for you to hold this qualification, so you can watch with interest as your colleagues work through these tests, however if you are based in England and Wales you cannot ignore the requirements, without a Certificate of Technical Competence the Environment Agency could revoke your Waste Management Licence or Environmental Permit with major consequences on your business.
Thursday, 12 May 2011
End of Life Vehicles
Utter the words End of Life Vehicle (ELV), and many will immediately picture a scrap yard full of old cars leaking oil and water, been involved in a heavy impact, or are simply a gutted shell. But this is only part of the story.
The End of Life Vehicle Directive – 2000/53/EC (to give it’s full title) is a Europe-wide directive that was to be enforced in all member states by 21 April 2002. However, some countries failed to implement the legislation by the deadline and many took advantage of flexibility within the directive so that the ‘last owner’ of the vehicle would be responsible for disposal of an ELV until the end of 2006. From 1st January 2007 this responsibility passed to the vehicle manufacturers bringing all member states in line.
The directive includes various targets involving: environmental practices in the motor salvage industry, the prohibition of the use of various heavy metals in vehicles and the removal of various hazardous fluids and components in a safe manner. Additionally the directive seeks to promote and encourage the development of markets for recycled parts.
The target causing most discussion is that 95% of a car (by weight) must be reused, recycled or recovered by 2015.
These, and other regulations in the directive, close the loop, from design and build, through sale, service and use, to disposal and recycling. The vehicle manufacturer is now responsible for the whole life of the vehicle, not just design and sales.
So what has changed in vehicle design and build? Plenty. The directive dictates that the use of Lead, Mercury, Cadmium and Hexavalent Chromium is now prohibited except in certain applications (i.e. batteries) according to a list that will be regularly reviewed. This ensures that these materials do not become shredder residues and are not incinerated or disposed of in landfills.
The European Union recently reported that this section alone has reduced the use of hazardous substances in vehicle production by 90%.
Manufacturers have also had to provide the industry with all requisite dismantling information with particular emphasis on hazardous materials and have to use component and material coding standards established by the European Commission to identify each individual part for recycling purposes.
In the next 5-10 years designers will have to adapt to many issues including:
Greater environmental awareness resulting in lower vehicle weights and the use of alternative construction materials
New Legislation and industry standards, such as:
Pedestrian impact
Reduction of emissions in production and use of the vehicle
Further increased environmental awareness
Lower production costs
Shorter lead times from design to manufacture
Looking closer at the first issue, vehicle weight is a major contributor to emissions, but it’s not all environmental, lighter cars have enhanced dynamics – handling, braking etc. The quest is on for designers to find components that meet all their requirements: are lighter and stronger, relatively inexpensive, environmentally attractive to produce and also recyclable in 2015.
It’s a tough challenge. For example, polymeric glazing (plastic glass) will be in use by a volume manufacturer within the next five years. Yes, it will be lighter than glass, however the plastics recycling market is currently not as advanced as the market for glass, so this has the potential to negatively impact the drive towards the 95% target.
Many manufacturers are already designing plastic components to be built using recycled materials and in many areas this is being achieved. Moreover, developments in shredder technology are starting to separate more of the various vehicle parts, resulting in less shredder residue going to landfill or incineration. Ultimately though the success of these developments rests upon the creation of a suitable marketplace willing to purchase the materials produced.
Outsourced parts are also a concern, as the manufacturer is ultimately responsible for the recyclability of all the components in their vehicles. Therefore they must ensure that all parts are recyclable within the terms of the ELV directive, i.e. do not contain any banned materials, are coded correctly and are also fit for the purpose for which they were designed.
The use of recycled material brings additional issues, including the availability and consistency of the material. It also requires the education of designers who may have little or no experience of working with recycled materials.
Concern remains over a number of areas both within and outside the ELV directive. For example, work must be done to develop effective recycled marketplaces. This has already started in the form of ongoing research, supported by the European Commission and many member states to investigate and develop recycled marketplaces and recycling processes in order to reach the 95% target.
The Commission also reported on the ELV process, specifically completing an impact assessment on the targets contained within the directive. It has concluded that there is no need to change these targets, despite fears that the current target of 95% by 2015 is unattainable.
The report highlights that any reduction in the targets will end the development of technology to treat the waste and that confirmation of the 2015 target will assist in removing current blockages to innovation. The assessment goes on to support the ELV Directive because it has triggered technological development in ELV treatment and stresses that continued development of treatment technologies will bring substantial environmental benefits.
You can find more details at http://ec.europa.eu/environment/waste/elv_index.htm
As the worldwide vehicle market expands over the coming years environmental concerns are only going to increase, leading many areas of the world to follow the example set by the European Commission.
The work already completed in Europe has made this region a world leader in motor vehicle environmental and recycling activities, creating business opportunities by setting high, but in my opinion, achievable standards.
Thursday, 28 April 2011
How 'Green' is the Auto Recycling World?
Sustainable development in the Auto Recycling Industry
Auto recycling can be a very green operation, but it can also be very dirty and harmful to the environment, the challenge has to be how to effectively improve the image of the industry, divert more product away from landfill and into recycling, and ensure that auto recycling activities do not harm this fragile planet we live on.
An immense challenge, especially when we hear about the predicted increase in new vehicle sales for China and S East Asia over the coming 20 years.
As with all things, this must start at the vehicle design stage – vehicle manufacturers must be forced to design vehicles that can easily be recycled once they reach the end of their lives. This includes materials used in production, restrictions in the use of hazardous substances such as mercury, and ease of dismantling.
During the life of the vehicle, manufacturers have a need to show that servicing schedules are designed to minimise waste, and service agents must be able to recycle as much of the waste products as possible.
When the vehicle reaches the end of its’ life it must go to an approved treatment facility for de-pollution, dismantling and recycling. A site where all waste products can be removed cleanly, efficiently and sent for recycling. A site where the ground will not be contaminated, workers are kept safe and the public are not in any danger.
The European Union is getting there – they already have rules and regulations in place regarding all of the above, including development of markets for the recycled products that come out of ELV’s – their target of 95% of each vehicle being recycled from 2015 is tough, but achievable.
Problem is, the rules only apply to cars and light commercial vehicles, when will similar standards be applied to motorbikes and heavy commercials?
What about the rest of the world and what happens in 10-12 years time when the 12 million new cars sold in China this year reach the end of their lives?
It is time for the worldwide auto recycling industry to set minimum standards for vehicle de-pollution, dismantling and recycling for all motor vehicles. Standards that reflect the need to protect our world from pollution, increase the amount of product that is recycled, and minimise waste.
Talk to your local Politicians, Councillors, Members of Parliament, Senators etc, ask them what they are doing to protect the environment, when can we see updated rules and regulations, and more importantly the funding to enforce these rules and regulations and drive illegal operators out of business.
Auto recycling can be a very green operation, but it can also be very dirty and harmful to the environment, the challenge has to be how to effectively improve the image of the industry, divert more product away from landfill and into recycling, and ensure that auto recycling activities do not harm this fragile planet we live on.
An immense challenge, especially when we hear about the predicted increase in new vehicle sales for China and S East Asia over the coming 20 years.
As with all things, this must start at the vehicle design stage – vehicle manufacturers must be forced to design vehicles that can easily be recycled once they reach the end of their lives. This includes materials used in production, restrictions in the use of hazardous substances such as mercury, and ease of dismantling.
During the life of the vehicle, manufacturers have a need to show that servicing schedules are designed to minimise waste, and service agents must be able to recycle as much of the waste products as possible.
When the vehicle reaches the end of its’ life it must go to an approved treatment facility for de-pollution, dismantling and recycling. A site where all waste products can be removed cleanly, efficiently and sent for recycling. A site where the ground will not be contaminated, workers are kept safe and the public are not in any danger.
The European Union is getting there – they already have rules and regulations in place regarding all of the above, including development of markets for the recycled products that come out of ELV’s – their target of 95% of each vehicle being recycled from 2015 is tough, but achievable.
Problem is, the rules only apply to cars and light commercial vehicles, when will similar standards be applied to motorbikes and heavy commercials?
What about the rest of the world and what happens in 10-12 years time when the 12 million new cars sold in China this year reach the end of their lives?
It is time for the worldwide auto recycling industry to set minimum standards for vehicle de-pollution, dismantling and recycling for all motor vehicles. Standards that reflect the need to protect our world from pollution, increase the amount of product that is recycled, and minimise waste.
Talk to your local Politicians, Councillors, Members of Parliament, Senators etc, ask them what they are doing to protect the environment, when can we see updated rules and regulations, and more importantly the funding to enforce these rules and regulations and drive illegal operators out of business.
Thursday, 21 April 2011
Cost of the operation
Very interesting morning yesterday working with an excellent recycling yard in South Wales. We were looking at costs, cost of purchasing stock, cost of processing the vehicles and the value of the vehicle as pure scrap.
This organisation have got all the records to hand and we were able to see how much it cost them to purchase stock, how much it cost to process end of life vehicles, the value of the scrap elements - hulk, alloy wheels, cores, catalytic converters etc. We also looked at parts sales and revenue.
What we did find is that the average purchase price was close to half the cost of processing the vehicle, and they cleared in excess of £200,000 profit annually just from processing end of life vehicles.
it got me wondering, how many other operations have access to similar information from their records? Unfortunately I believe that only a very small number of auto recycling businesses will have this knowledge - those that do not have this data are at increased risk of financial problems - knowing your turnover, costs, revenue streams is so important in the current financial climate.
We are now heading into a couple of long weekends - ideal time for owners and managers to take a few days away from the de-pollution bay, and take some time out. So as you fire up the barbeque and open that bottle of wine - think about the business and how much more profit you could be making if you take time to analyse where costs can be saved, where more revenue could be obtained, and how you measure this.
Salvage Wire can help, see our website for more detail on how to contact us.
Happy Easter
This organisation have got all the records to hand and we were able to see how much it cost them to purchase stock, how much it cost to process end of life vehicles, the value of the scrap elements - hulk, alloy wheels, cores, catalytic converters etc. We also looked at parts sales and revenue.
What we did find is that the average purchase price was close to half the cost of processing the vehicle, and they cleared in excess of £200,000 profit annually just from processing end of life vehicles.
it got me wondering, how many other operations have access to similar information from their records? Unfortunately I believe that only a very small number of auto recycling businesses will have this knowledge - those that do not have this data are at increased risk of financial problems - knowing your turnover, costs, revenue streams is so important in the current financial climate.
We are now heading into a couple of long weekends - ideal time for owners and managers to take a few days away from the de-pollution bay, and take some time out. So as you fire up the barbeque and open that bottle of wine - think about the business and how much more profit you could be making if you take time to analyse where costs can be saved, where more revenue could be obtained, and how you measure this.
Salvage Wire can help, see our website for more detail on how to contact us.
Happy Easter
Friday, 15 April 2011
Certificate of Technical Competency
Auto recycling yard managers in England and Wales have less then 12 months to obtain their Certificate of Technical Competence. Failure to do this could result in businesses being closed down following revocation of waste management licences.
The original deadline of Feb 2011 was extended by 12 months so that all necessary staff could get through the qualification, and to date it is believed that only 10% of all Technically Competent Managers have taken the test, leaving almost 10,000 tests still to be taken in the remaining 10 months.
All End of Life Vehicle or Metal Recycling facilities must have the following ‘Operator Competence’ in place:
Free from environmental convictions
Financially viable
Have technical Competence in place
Operator Competence must remain in place for the life of the facility – this includes ongoing testing with the first deadline of Feb 2012 and ongoing re-testing every 2 years.
Additionally the Technically Competent Manager must be on site 20-25% of EVERY week, so if they go on holiday, they need to be replaced for the time they are away.
There are a number of avenues for obtaining initial competence, and the choice taken can be as follows:
You have already been deemed to be competent by the Environment Agency – you take the on-line general module and up to three specific modules relating to your chosen area of business.
Work through a training agency towards a number of NVQ’s
Take a VRQ – an intensive training course that is equivalent to 6 NVQ’s
Obtain the ESA ‘Corporate Competence’ qualification
One of the best sources of information is the WAMITAB (Waste Management Industry Training and Advisory Board) web site – www.wamitab.org.uk
The original deadline of Feb 2011 was extended by 12 months so that all necessary staff could get through the qualification, and to date it is believed that only 10% of all Technically Competent Managers have taken the test, leaving almost 10,000 tests still to be taken in the remaining 10 months.
All End of Life Vehicle or Metal Recycling facilities must have the following ‘Operator Competence’ in place:
Free from environmental convictions
Financially viable
Have technical Competence in place
Operator Competence must remain in place for the life of the facility – this includes ongoing testing with the first deadline of Feb 2012 and ongoing re-testing every 2 years.
Additionally the Technically Competent Manager must be on site 20-25% of EVERY week, so if they go on holiday, they need to be replaced for the time they are away.
There are a number of avenues for obtaining initial competence, and the choice taken can be as follows:
You have already been deemed to be competent by the Environment Agency – you take the on-line general module and up to three specific modules relating to your chosen area of business.
Work through a training agency towards a number of NVQ’s
Take a VRQ – an intensive training course that is equivalent to 6 NVQ’s
Obtain the ESA ‘Corporate Competence’ qualification
One of the best sources of information is the WAMITAB (Waste Management Industry Training and Advisory Board) web site – www.wamitab.org.uk
Tuesday, 22 March 2011
Special Report on Salvage
The Automotive Recyclers Association latest magazine includes a special report on salvage, subjects discussed include:
Global Goods - Technical advances in motor vehicles are making repairs much harder and raising costs. This has the potential to increase instances of fraud and sub-standard repair -- issues that can seriously harm the reputation of the auto recycling industry. How can the global auto recycling industry, whilst keeping costs as low as possible, continue to improve standards, consumer protection, and eradicate fraud?,
Fairness - The 2009 study titled International Trade in Used Vehicles: The Environmental Consequences of NAFTA, by Lucas W. Davis, Haas School of Business, University of California, Berkeley, and Matthew E. Kahn, UCLA Institute of the Environ- ment, studied the effects of the law since its passage in 1993, including trade patterns. The North American Free Trade Agreement was created to expand trade between the United States, Canada, and Mexico to make them more competitive in the global marketplace. As of January 1, 2008, all tariffs among the three countries were eliminated and trade tripled from $297 billion to $1 trillion between 1993-2007, according to the study.
Fleecing Customers - In a 2009 CNN report, Guiseppe "Joe" Pirrone was on vacation when a relative called to say that the work truck he had purchased for his business was being seized by the police. Pirrone learned that the truck he legally bought in 2008 was actually a stolen vehicle, and he was a victim of a car cloning vehicle theft ring. While the truck was now police evidence, he is still on the hook for the $27,000 loan.
Stakeholder Perspective - Automotive Recycling magazine, in an effort to fully understand the issues surrounding the current marketplace of salvage and allow for varying opinions on the topic, sent questions to seven varying industry stakeholders, all who are members of the Collision Industry Electronic Commerce Association(CEICA) Salvage Committee. Here are three responses with their perspective on our questions. We appreciate their participation.
The full articles are available on-line at http://www.a-r-a.org/paper.asp?paper=102, they are well worth reading.
Global Goods - Technical advances in motor vehicles are making repairs much harder and raising costs. This has the potential to increase instances of fraud and sub-standard repair -- issues that can seriously harm the reputation of the auto recycling industry. How can the global auto recycling industry, whilst keeping costs as low as possible, continue to improve standards, consumer protection, and eradicate fraud?,
Fairness - The 2009 study titled International Trade in Used Vehicles: The Environmental Consequences of NAFTA, by Lucas W. Davis, Haas School of Business, University of California, Berkeley, and Matthew E. Kahn, UCLA Institute of the Environ- ment, studied the effects of the law since its passage in 1993, including trade patterns. The North American Free Trade Agreement was created to expand trade between the United States, Canada, and Mexico to make them more competitive in the global marketplace. As of January 1, 2008, all tariffs among the three countries were eliminated and trade tripled from $297 billion to $1 trillion between 1993-2007, according to the study.
Fleecing Customers - In a 2009 CNN report, Guiseppe "Joe" Pirrone was on vacation when a relative called to say that the work truck he had purchased for his business was being seized by the police. Pirrone learned that the truck he legally bought in 2008 was actually a stolen vehicle, and he was a victim of a car cloning vehicle theft ring. While the truck was now police evidence, he is still on the hook for the $27,000 loan.
Stakeholder Perspective - Automotive Recycling magazine, in an effort to fully understand the issues surrounding the current marketplace of salvage and allow for varying opinions on the topic, sent questions to seven varying industry stakeholders, all who are members of the Collision Industry Electronic Commerce Association(CEICA) Salvage Committee. Here are three responses with their perspective on our questions. We appreciate their participation.
The full articles are available on-line at http://www.a-r-a.org/paper.asp?paper=102, they are well worth reading.
Thursday, 3 February 2011
Legislating Write-Offs
The last few weeks have seen two new initiatives focused at legislating written-off vehicles.
The Irish Government are consulting on proposed legislation and the government of New South Wales enacted legislation to stop all write-offs being re-registered.
I have already commented elsewhere on the Irish proposals so will concentrate on New South Wales.
The legislation is very specific; any vehicle under 4.5 tonnes gross weight that is written-off in NSW cannot be re-registered anywhere in Australia. This includes cars, Light Commercials, Trailers, Caravans and Motorbikes.
There are a few exemptions, for example vehicles that have suffered hail damage, but in all cases the owner must apply for authority to repair the vehicle prior to repairs commencing, and the repaired vehicle must go through two inspections before being allowed back into use – one focused on vehicle repair standards, the other on vehicle identity.
A vehicle is classed as a write-off when the assessed repair cost added to the salvage value exceeds the market value of the vehicle. On assessment by a qualified vehicle damage assessor reports must be filed within 7 days, the vehicle must have a very prominent sticker applied where it can be seen (there are penalties for tampering with these stickers) advising all that this is a statutory write-off and cannot be used on the road ever again, and all assessment records must be retained for 7 years. The NSW government have also put a rigorous audit process in place to ensure that standards are maintained to the appropriate level.
What does this mean for the Australian insurance and vehicle repair marketplace; I believe a number of things will change.
• Insurers will be focused more on reducing repair costs, ensuring that fewer vehicles reach total loss status – more ‘recycled’ parts, cheaper labour costs, repairing more parts rather than replacing, and driving lower parts costs from manufacturers.
• Hopefully this will not lower repair standards in the body repair centres.
• There is potential for loss of repair capacity as repair shops close due to lower volume of repairs from insurers and repairable salvage.
• There will also be downward pressure on parts and scrap prices as more vehicles are broken for spares and scrapped than previously.
• Will insurance premiums rise to compensate for the loss of repairable salvage returns? I will let you make your own judgement!
As the various marketplaces consolidate over the next few months the picture will get much clearer and I am sure that the global market will be watching with interest to valuate the impact of this legislation.
More details are available at http://www.rta.nsw.gov.au/registration/written_off_vehicles/index.html
The Irish Government are consulting on proposed legislation and the government of New South Wales enacted legislation to stop all write-offs being re-registered.
I have already commented elsewhere on the Irish proposals so will concentrate on New South Wales.
The legislation is very specific; any vehicle under 4.5 tonnes gross weight that is written-off in NSW cannot be re-registered anywhere in Australia. This includes cars, Light Commercials, Trailers, Caravans and Motorbikes.
There are a few exemptions, for example vehicles that have suffered hail damage, but in all cases the owner must apply for authority to repair the vehicle prior to repairs commencing, and the repaired vehicle must go through two inspections before being allowed back into use – one focused on vehicle repair standards, the other on vehicle identity.
A vehicle is classed as a write-off when the assessed repair cost added to the salvage value exceeds the market value of the vehicle. On assessment by a qualified vehicle damage assessor reports must be filed within 7 days, the vehicle must have a very prominent sticker applied where it can be seen (there are penalties for tampering with these stickers) advising all that this is a statutory write-off and cannot be used on the road ever again, and all assessment records must be retained for 7 years. The NSW government have also put a rigorous audit process in place to ensure that standards are maintained to the appropriate level.
What does this mean for the Australian insurance and vehicle repair marketplace; I believe a number of things will change.
• Insurers will be focused more on reducing repair costs, ensuring that fewer vehicles reach total loss status – more ‘recycled’ parts, cheaper labour costs, repairing more parts rather than replacing, and driving lower parts costs from manufacturers.
• Hopefully this will not lower repair standards in the body repair centres.
• There is potential for loss of repair capacity as repair shops close due to lower volume of repairs from insurers and repairable salvage.
• There will also be downward pressure on parts and scrap prices as more vehicles are broken for spares and scrapped than previously.
• Will insurance premiums rise to compensate for the loss of repairable salvage returns? I will let you make your own judgement!
As the various marketplaces consolidate over the next few months the picture will get much clearer and I am sure that the global market will be watching with interest to valuate the impact of this legislation.
More details are available at http://www.rta.nsw.gov.au/registration/written_off_vehicles/index.html
Thursday, 13 January 2011
Make a world of difference when you scrap your car
How to ensure your old car doesn’t become an environmental hazard.
You may have never had to scrap a vehicle before, so you haven’t had to think about the consequences of what happens to your vehicle. Where you take it can be the difference between responsible environmental practices or a total environmental disaster.
The truth is, not everybody handles end-of-life vehicles (ELV) and vehicles that have been in accidents the way they should.
The volume of salvage yards trying to extract the most value from an ELV by cutting environmental corners is a growing practice. The European Union set regulations in place 10 years ago to prevent vehicle dismantling and destruction from harming the environment whilst maximising the volume of each vehicle that is recycled. Currently 85% of the vehicle must be recycled; by 2015 salvage yards will have to recycle 95% of each vehicle.
Unfortunately, there are a number of salvage yards that do not abide by the EU regulations, and these yards are having a negative impact on the environment.
Licensed operators have spent a lot of money on premises and equipment to ensure that all the hazardous components of vehicle dismantling are handled correctly and in a way that does not harm the environment. These areas include tyres, batteries, oils, fuel, coolant, batteries, air conditioning gas etc. Any of these can pose a hazard to the environment, hence the need to treat each of them so carefully.
Once the vehicle has been fully de-polluted it is then recycled, either by going through shredding process, or by being dismantled and the parts removed and resold for use on other vehicles before the remainder of the vehicle is crushed and recycled fully.
There are a number of resources available to help you make the correct choice about who scraps your car, the Environment Agency web site has a full list of Authorised Treatment Facilities – those businesses that have put in the investment to achieve the standard required by the EU – see http://www.environment-agency.gov.uk/business/regulation/65470.aspx
Or you could use one of the many national services available including Give A Car http://www.giveacar.co.uk/ who will scrap your car and make a donation to the charity of your choice, and Car Take Back (www.cartakeback.com).
You can make a world of difference by the choices you make when you scrap your vehicle.
You may have never had to scrap a vehicle before, so you haven’t had to think about the consequences of what happens to your vehicle. Where you take it can be the difference between responsible environmental practices or a total environmental disaster.
The truth is, not everybody handles end-of-life vehicles (ELV) and vehicles that have been in accidents the way they should.
The volume of salvage yards trying to extract the most value from an ELV by cutting environmental corners is a growing practice. The European Union set regulations in place 10 years ago to prevent vehicle dismantling and destruction from harming the environment whilst maximising the volume of each vehicle that is recycled. Currently 85% of the vehicle must be recycled; by 2015 salvage yards will have to recycle 95% of each vehicle.
Unfortunately, there are a number of salvage yards that do not abide by the EU regulations, and these yards are having a negative impact on the environment.
Licensed operators have spent a lot of money on premises and equipment to ensure that all the hazardous components of vehicle dismantling are handled correctly and in a way that does not harm the environment. These areas include tyres, batteries, oils, fuel, coolant, batteries, air conditioning gas etc. Any of these can pose a hazard to the environment, hence the need to treat each of them so carefully.
Once the vehicle has been fully de-polluted it is then recycled, either by going through shredding process, or by being dismantled and the parts removed and resold for use on other vehicles before the remainder of the vehicle is crushed and recycled fully.
There are a number of resources available to help you make the correct choice about who scraps your car, the Environment Agency web site has a full list of Authorised Treatment Facilities – those businesses that have put in the investment to achieve the standard required by the EU – see http://www.environment-agency.gov.uk/business/regulation/65470.aspx
Or you could use one of the many national services available including Give A Car http://www.giveacar.co.uk/ who will scrap your car and make a donation to the charity of your choice, and Car Take Back (www.cartakeback.com).
You can make a world of difference by the choices you make when you scrap your vehicle.
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