Salvage Wire

Salvage Wire
Helping Automotive recyclers become leaders in their industry

Friday, 23 December 2011

Final Comment on 2011

The year started with the Irish Government issuing a consultation document that detailed possible future total loss legislation. Ireland has since had an election and a change of government so this consultation has been shelved for the moment. It won’t be long though before it comes back, and if it works in Ireland, it will work anywhere in the world.

Take a step back and look at your business; are you following the various Codes of Practice and guidance papers that show how things should be done? These can easily become legislation that could be far more costly and invasive than the current processes, so think very carefully before you sell that piece of salvage or cut the front end off a bodyshell.

The price of decent salvage is higher than it has been for a long time and it is more difficult than ever to make a profit, but it is possible! How quickly do you turn your stock around? What is in demand? What do you have too much of in stock? How much money is tied up in ‘hulks’ that are taking up space in your yard? How efficient are your sales staff? How do you sell parts, market your business, and gain more quality stock? The ideas are out there, all you have to do is look, share ideas with successful businesses, learn, develop and implement processes.

Join a salvage organisation who can show benefit to the industry and their members, use them to gain discounts on valuable services such as insurance and training. Your membership helps them to influence national and local government, change legislation that is inappropriate, develop new processes and standards that benefit the industry and bring new ideas and talent to help salvage businesses grow.

Exporting will not stop; we work in a global industry so it is time to get used to dealing with customers from other countries on a regular basis.

It is time to catch up with the real world, use of Twitter, Facebook and other social media is not something that you can ignore any longer. Technology like this can give you immediate feedback, marketing and customer access, and it is free! Ignorance is not an excuse, take the time to learn how these systems operate and the benefit they can bring you, the world is using them, why aren’t you?

Environment Agencies are there to enforce regulations and legislation and make sure the risk of pollution is limited. They are very good at prioritising who they need to visit, and if they are visiting you more than once every 6 months then you need to look at how you run your yard and improve so the focus can move onto those that do not comply.

Technical Competence is here to stay, it won’t go away and this sort of training and qualification will increase – and it will benefit the industry - if you haven’t got it by the end of Feb 2012 then don’t expect your licence to continue.

Grumpy salvage operators love other grumpy salvage operators, try and get out a bit more and away from the industry, make friends with people outside of the motor industry who have equally difficult and frustrating working lives and get some perspective, if your business isn’t working then stop blaming everyone else.

Now is the opportunity to change; the vehicles we deal with are changing dramatically all the time and the next few years will be no different, hybrids, fuel cells, electric vehicles, aluminium, composites and even more advanced steels are in use now. The opportunity to be ahead of the competition will not last forever so 2012 may be the time to invest in the future. Are you going to take up the challenge?

This industry is full of intelligent, dedicated, professional, experienced and adaptable people who want to move forward; for those who cannot see the future with this sort of enthusiasm then please step to one side and allow the rest of us through.

No comments: