‘Keep the goose that lays the golden eggs well fed’

The worldwide automotive recycling market was worth more than US$ 75 billion (EUR 70 billion) in 2018 and is projected to witness up to 20% growth by

What happened

‘We want to keep our attitude positive but we can’t ignore what’s happening at the moment. It certainly is a challenging time. Cash flow is a problem, with sales already down significantly at most Australian car recyclers and scrapyards,’ says Chris Daglis, owner of Melbourne-based automotive consultancy firm PARTnered Solutions. ‘Most likely, the global economy will be down for some time. That’s why we have to be smart and find new ways to attract business.’

Why it matters

Eager to discuss the best survival strategy, Daglis recently organised a virtual conference. Among those taking part was Scott Robertson, owner of Robertson’s Auto Salvage in Massachusetts and president of the US Auto Recycling Association, who said revenue had decreased roughly 50% recently.

‘I’ve heard from people based in New York, Connecticut and New Jersey saying that revenue is down by 80%. These drops came practically overnight. Within four or five business days, our whole world changed,’ Robertson spelled out. ‘No one could prepare for this. I imagine it feels kind of like sailing into a hurricane when you’re expecting good weather – all of a sudden you’re hitting big waves.’

All things considered, it’s challenging to remain optimistic and he admits, ‘The cash flow problem is the first thing I think about when I get up, and the last thing on my mind before I go to sleep. I’m lying there wondering, how am I going to make this work? How am I going to survive in business earning half of what I usually do, but with 100% of my expenses?’

This news brief is based on reporting published by Recycling International on 2020-04-06. The original report is linked below.