Multi-Industry Committee Formed to Better Market Recycled Parts

Ontario auto recyclers gained momentum for their initiatives with the creation of a multi-industry panel including collision repairers and insurers at the recent Ontario Auto Recyclers Association (OARA) convention in Toronto. The committee was born from a panel discussion on “How to increase the use of recycled parts”, a key event at the two-day conference bringing together more than 150 recyclers and suppliers.

Sam Piercey, co-owner and manager of Budds’ Collision Services in Oakville, struck the motion after members of the three sectors agreed that using recycled parts in the repair process was a means to improving profitability and productivity.

Initial priorities of the ad hoc committee are to work together on collateral marketing material that will make it easier for repairers to “sell” their customers on the value of Green Parts.

“I know the recycling community has put a lot of effort into marketing materials, but we as repairers need to help shape the messaging and marketing collateral to help us convince our customers,” said Sam Piercey.

Keith Hudd of Economical Insurance Group (EIG) said insurers are looking at ways to increase recycled parts usage and indicated EIG has increased the mark-up on recycled parts to 32 per cent and the increased labour by 2.2 hours to encourage the use of recycled parts.

The panel, hosted by Darryl Simmons (publisher of Collision Repair magazine and Canadian Auto Recycler magazine) consisted of key industry leaders: Keith Hudd - Economical Insurance Group, Sam Piercey - Budds’ Collision Services, Tony Canade - Assured Automotive, David Gold - Standard Auto Wreckers, Dom Vetere – Dom’s Auto Parts, Don Fraser – Aadco Auto Parts, Gary McKnight – Co-operators and Dominic Maurini industry consultant.

“There has been a lot of education and a general mind shift in the collision repair industry. The time is right for the entire industry to be held more accountable,” said Tony Canade of Assured Automotive.

Recycled parts are known to have a number of environmental benefits.

“No other product on earth is recycled more than an automobile,” said Steve Fletcher, executive director of OARA. “By increasing the use of Green Parts we will greatly reduce the industry’s environmental impact.”

The 2009 OARA conference was held on March 26-28 in Toronto. The conference was a huge success and it was standing room only for the keynote address by Ron Sturgeon on “The Future of Auto Recycling.” Sturgeon, author of several books including “Salvaging Millions”, discussed the past, present and future of the automotive recycling industry.

“People who pay attention and make required course corrections will do well,” said Sturgeon. “The future of recycling will see pressures on margins, the need for better quality and increased service demands.”

The OARA conference included several other presentations. Cara Sweeny of the Clean Air Foundation presented Canada’s New Vehicle Recycling Program called Retire Your Ride. Michael Hlacar, Director of Ferrous Trading discussed how global demand of raw steel will stay at the current level for some time. Warren Barnard from the Used Car Dealer Association discussed the new MVDA Regulations and the 22 items that need to be disclosed when buying and selling vehicles.

Written by Orest Tcazuk http://collisionrepairmag.com/news/breaking-news/committee-to-increase-use-of-recycled-parts.html