Salvage Wire

Salvage Wire
Helping Automotive recyclers become leaders in their industry

Tuesday, 5 July 2011

Motor Salvage – The next 10 years

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.

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