Repairer-Recycler Relations: Could COVID build a better bond?

Toronto, Ontario ⁠—  Industry leaders are suggesting auto recyclers and collision repairers use this pivotal time to discuss the opportunities and challenges in working together more efficiently.

On this week’s episode of the Automotive Recycler’s Experience, hosts Chris Daglis of PARTnered Solutions and Chad Counselman, former Automotive Recyclers Association president and general manager of business development for Australia’s All Auto Recalls, were joined by Jason Moseley, CEO of the International Bodyshop Symposium, Jason Stahl of BodyShop Business and Michel Malik of BodyShop News International.

In the hour-long broadcast, the group covered a number of topics, including how the supply chain has changed for the collision repair industry and what will it look like in the future; how the auto recycling industry can support collision repairers and insurers to achieve a win/win outcome; how the consolidation of the collision repair industry has changed the relationship and what can auto recyclers learn from it?

When Daglis asked panellists what the supply chain may look like in the near future⁠, they agreed that recyclers will play a key role in providing repairers quick access to parts.

Stahl weighed in, saying that, though U.S. shops have seen an average decrease in business between 50 to 60 percent, few have experienced issues with parts as of yet. Though, when the economy does reopen, there will be a bounceback “bigger than before”—and, with automakers worldwide retooling their operations to produce tools for frontline workers, access to parts could prove a problem.

“Recyclers are key right now. I think we’re going to see an increased reliance,” said Stahl. “They have the parts and they have them now.”

Moseley agreed, adding that increased reliance on recycled parts will have to be pursued in the “right” way.

“I think this is a massive opportunity for the auto recycling industry, but it has to be done right. Bodyshops can be a funny breed,” joked Mosely. “They’re under a lot of pressure, margins are tight⁠—whatever we do for them has to be done right.”

Moseley also recognized one of the challenges COVID-19 presents for recyclers.

“Miles driven are down, which means total losses are also down,” he said. “The usable parts supply may also be down. But, if we can get the right part in the right condition and identify it correctly for that vehicle, and it doesn’t displace a repairer’s profitability or the efficiency of the repair, we’ve got a win,” he said. “But we won’t have a win if the part isn’t quite right or is missing something. That means we have a courtesy car out on the road for two days longer than planned. These are all things that could make it very difficult for repairers. It’s a massive opportunity, but there is a lot of hard work to be done.”

“It’s true, there is a lot of work to be done,” said Daglis. “The work isn’t going to just come to them⁠—the auto recycler needs to step up⁠—as many have.”

Moseley then brought up the point of involving insurers⁠—though it has to be a win-win for all involved.

“If this going through insurers, it has to be equitable for everybody involved. It cannot be somebody taking a much bigger gain at the loss of someone else,” he said.

Daglis agreed, saying that, when that equitable partnership does happen, usage can increase.

“There’s never been a better time to have this discussion,” said Moseley. “We just need to find a win-win for both.”

Click here to watch the full episode on Facebook.

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