January-February - Automotive Recyclers Association

Recycling
Automotive
Recycling
January-February 2013
January-February 2013
Official Publication of the Automotive Recyclers Association
The Magic
of Change
ARA’s 69th Annual
Convention & Exposition
helped auto recyclers plan
for a successful future.
Outgoing ARA President Randy Reitman
urges for increased member participation:
“The new generation needs
to come up in this industry.
It’s the young-bloods that are
going to make the industry
strong in the future.”
E-mail and Social Media • History of Transportation • Fiscal Cliff Hanger

www.facebook.com/
AutomotiveRecycling
Automotive
Recycling
www.AutomotiveRecycling-Ezine.com
January-February 2013 | Volume 33 Number 1
Columns
President’s Comments | 4
• Chris Wright
Editor’s Notes | 6
• Caryn Smith
International
Auto Recycling | 57
Final Thoughts | 62
• Michael Wilson
Depar tments
At a Glance | 7
ARA Action | 8
Marketing 101 | 12
• Mike French
On the Road | 15
• Sandy Blalock
Lessons Learned | 16
• Ginny Whelan
Insure This | 20
• Bill Velin
Momentum | 22
• Donald Porter
Safety Matters | 24
• ARA Satefty Committee
Advice Counts | 25
• Jim Counts
Sales Call | 26
• Jim Counts
That’s My Opinion | 27
• Jim Counts
Green Scene | 28
Capitol Connection | 58
• ARA Government Affairs
Crossword Puzzle | 60
Industry Calendar | 61
Advertiser’s Index | 61
Automotive Recyclers Association
9113 Church Street, Manassas, VA 20110-5456 USA
(571) 208-0428 / (888) 385-1005 / www.a-r-a.org
ARA’S 69TH ANNUAL CONVENTION & EXPOSITION
q
The Magic of Change 29
ARA’s 69th Annual Convention & Exposition helped auto recyclers
gain insight to increase their profitability for the future.
By Michelle Keadle-Taylor
q
ARA Gives Recognition 36
FOCUS ON THE ECONOMY
q
Fiscal Cliff Hanger 38
Congress enacts the American Taxpayer Relief Act,
finally providing relief to the looming economic perfect storm.
A BIT OF HISTORY
q
From There to Here 41
A history of transporting cars to auto recyclers’ facilities as remembered by industry founders.
By Michelle Keadle-Taylor
q
The Beginnings of Auto Recycling 46
A look back with John C. Vander Haag, Jr.
By Michelle Keadle-Taylor
BOOSTING YOUR E-MAIL MARKETING
q
Plan for Clicks 47
How to leverage e-mail and social media to engage your audiences.
By Pamela Starr, Area Director, Constant Contact
q
View From Your Inbox 49
Boosting your social media profile can be easily done with
a few ideas that fuse e-mail with your social connection.
By Caryn Smith and Joe Dysert
SPOTLIGHT ON EXCELLENCE
q
Goyette’s Inc. Auto Recycling: Born to Win 52
The foundation of this business, set forth many years before by its founders, includes a good
solid work ethic and a determination to take on challenges and overcome them.
By Michelle Keadle-Taylor
AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA, (571) 208-0428 / (888) 385-1005, Fax: (571) 208-0430, Internet: www.a-r-a.org. Periodicals postage
at Manassas, VA, and additional mailing offices. Additional member subscription are $15/year. Non-member subscriptions are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and non-profits.
Copyright © 2013 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are the responsibility of the authors alone and do not necessarily imply any opinion on the part
of the officers, directors, staff, or the members of the Automotive Recyclers Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA.
January-February 2013 | Automotive Recycling 3

President’s
Comments
By Chris Wright, ARA President
Getting to Work
Happy New Year and welcome to 2013. I hope that everyone had a wonderful
holiday season and is looking forward to a very prosperous New Year. We had
another successful convention in Orlando back in October. It was great seeing
so many of you there. If you missed the opportunity to participate in Orlando be sure
to mark your calendar for November 6th through 9th, 2013 for ARA’s 70th Annual
Convention & Exhibition in Phoenix, Arizona. Thank you to the ARA staff for your
hard work at the convention and thank you to the many vendors and sponsors who
helped to make the Orlando Convention such a success.
This next year will prove to be another busy year for ARA. We have already participated
in testimonies in Ohio and will continue to monitor the legislation introduced
there. Also, Michael Wilson just returned from the International Conference on
Recycling of Valuable Resources held in South Korea.
The new year will begin with a strategic planning meeting in January. Members of
the Executive Committee, Board of Directors, Past Presidents, and Committee Chairs
will meet to help build on ARA’s strategic plan to help refine our goals, objectives, and
missions for the upcoming years. Remember to mark your calendar for the Mid-Year
Meeting, Hill Days, and Legislative Summit in Washington, D.C. on March 13-15, 2013.
Many of the state associations are hard at work planning their upcoming conventions
and monitoring the legislative activities in their home states. Please help to keep your
state association and ARA informed of any legislative activities that might affect the automotive
recycling industry. Please forward that information to jessica@a-r-a.org.
Hurricane Sandy has affected so many people and businesses along the East Coast
and the devastation from a storm of this magnitude can take years to overcome—we
have experienced the devastation of these storms several times here in the South. Many
vehicles were damaged as a result of this storm and ARA has posted news releases asking
Congress to review implementation and enforcement of NMVTIS to ensure all flooddamaged
vehicles are appropriately tracked and not sold to unsuspecting automotive
consumers. ARA will continue to monitor and request data from the NMVTIS reporting
activity on these flooded vehicles.
There are many challenges and much work to be done ahead of us, both as an association
and as an industry. We have some projects that need to be completed and I’m
sure we will have some suggestions of new task, goals and directions introduced at the
strategic planning meeting. As an association we all need to be involved and to continue
to participate to help the association achieve its goals, which in turn, will benefit
ARA and all of its members.
Keep Recycling,
Chris Wright
ARA President 2012-2013
ARA Officers
PRESIDENT
Chris Wright
Capital Auto Parts
Thomasville, GA
chris@capitalautoparts.com
FIRST VICE PRESIDENT
Ed MacDonald
Maritime Auto Salvage, Ltd.
Truro, NS Canada
edmacd@maritimeauto.com
SECOND VICE PRESIDENT/TREASURER
Ricky Young
Young’s Auto Center & Salvage/Car Crushers
Benson, NC
ricky@youngsautocenter.com
SECRETARY
Mike Swift
Trails End Auto and Truck Salvage
Des Moines, IA
mike@trailsendauto.com
IMMEDIATE PAST PRESIDENT
Randy Reitman
Reitman Auto Parts
Melbourne, KY
randy@reitmanautoparts.com
ARA Executive Staff & Contractors
ARA Headquarters • (571) 208-0428
CHIEF EXECUTIVE OFFICER & PUBLISHER
Michael E. Wilson
michael@a-r-a.org Ext. 14
DIRECTOR OF MEMBER SERVICES
Kelly Badillo
kelly@a-r-a.org Ext. 26
DIRECTOR OF POLICY AND EXTERNAL
AFFAIRS & E-CAR CENTER
Betsy Beckwith
Betsy@a-r-a.org Ext. 17
DIRECTOR OF STATE & GRASSROOTS AFFAIRS
Jessica M. Thomas
Jessica@a-r-a.org Ext. 23
DIRECTOR OF POLICY & POLITICAL AFFAIRS
Delanne Bernier
Delanne@a-r-a.org Ext. 18
MEETING & EXPOSITION PLANNER
Kimberly Glasscock
(615) 476-4501
kglasscock@awardwinningevents.com
ADMINISTRATIVE ASSISTANT
Maria Miller
maria@a-r-a.org Ext. 10
ACCOUNTANT
John Caponiti
john@a-r-a.org Ext. 16
CAR PROGRAMS, CONSULTANT
Chrissi Moyer
(540) 303-2282
chrissi@a-r-a.org
GOLD SEAL PROGRAM, CONSULTANT
Ginny Whelan
(239) 362-1283
ginny@araeducation.org
AUTOMOTIVE RECYCLING MAGAZINE &
WWW.AUTOMOTIVERECYCLING-EZINE.COM
Caryn Suko Smith
(239) 225-6137
AEAEditor@comcast.net
For advertising, editorial, or production information,
e-mail ARAEditor@comcast.net or call (239) 225-6137.
www.a-r-a.org
4 Automotive Recycling | January-February 2013

Editor’s Notes
By Caryn Smith ARAEditor@comcast.net
Making the Best of 2013
Iam on a mission to make this my best
year yet. In a blog called Practicing
Uncommon Sense, branding guru Shawn
Parr shares some useful advice. I won’t
reprint the whole blog article here, but I
will share his #1 way to accomplish such
a large goal.
He says, “Grab the year by the ears.
Look back at 2012 and celebrate your successes
and identify your failures. Map
what you learned from both and think
about what you want to change in the
year ahead. Define what success looks like
for 2013, setting audacious and achievable
goals. Envision what you want the
year to look like, literally. Write a list by
month, write a year-end letter to yourself,
don’t go into 2013 without knowing what
you want success to look like. Map out
how you’ll get there and what resources
you’ll need.” If you are not planning your
success, then how will you ever know
when you arrive at your destination?
In this publication, you will find success-oriented
information throughout
the year, such as inspiration from other
auto recyclers, trends, how-to articles, etc.
Our goal is to empower you with perspective,
inspiration, and real world tools
to grow your business. I hope that part of
your plan will be to implement what
speaks to you from our pages.
In this issue, we provide tips from how
to increase the success of your e-mail
campaigns to the impact of the fiscal cliff
legislation may have on your financials.
Be sure to read and implement what will
work for you!
Lastly, the best place to learn is at the
ARA Annual Convention – our overview
of the 2012 event starts on page 29.
Phoenix, Arizona is our next city host,
mark your calendar now for November 6-
9 as part of your success plan for 2013! ■
More success tips are found at http://bulldogdrummond.com/blog/3475.
Correction: In the November-December issue, in the article on page 50 on Logan Oil, the quotes (“...”) were left off a direct quote on the sentence that begins, “After a
decade of continued success...” and continuing to the end of the paragraph. This editorial oversight could have been perceived as an endorsment in our review of depollution
companies. Automotive Recycling magazine does not directly endorse any company listed in its pages. Our review of ARA-member companies was meant to allow
the reader to make their own judgements of each company’s offerings, and we relied totally on information provided by each company as they saw fit to provide it. We
apologize for the error or any misleading statements made therein.
6 Automotive Recycling | January-February 2013

At a Glance
Lamb Fuels: Giving Back
One of the highlights for attendees of
the ARA Annual Convention is the
auction that benefits a different Foundation
each year. This year, proceeds from
the auction benefitted the ARA Educational
Foundation, which supports initiatives
such as ARA University, the ARA
Family Network, the Ladies of the Automotive
Recyclers Association (LARA),
and more.
The auction historically boasts unique
donated items, from pieces of memorabilia
all the way to a Safari to South Africa,
a trip donated regularly by Past President
Skip Weller of Weller Auto Parts.
This year, a new exotic get-away made
a splash and drew top dollar on the auction
block – a one-month stay in Belize –
which was auctioned off week by week.
Greg Lamb, CEO of Lamb Fuels, generously
donated this extended stay at his
family’s vacation home in this Caribbean
gateway, located on the north eastern
coast of Central America and on the
shores of the Caribbean Sea.
“Belize is an amazing country, which
my family enjoys so much. It is rich in culture,
history, and diversity,” Lamb says. “I
felt as if we had experiences there that
should be shared. Our donation to the
ARA Educational Foundation was an easy
decision because the ARA has provided
Lamb Fuels the opportunity to participate
and dialog with its membership and
proven its value over and over. We knew
there was a value in our Belize home
and it returned huge rewards for the
Foundation.”
Lamb Fuels has been a proud member
of ARA for 8 years, since 2004 and has
attended the ARA convention each year
since it was held in Tucson, Arizona.
“I love working with the auto recycling
industry and enjoy working with the people
in it,” Lamb continues. “The ARA
gives us opportunity by working with its
membership to develop and introduce
innovative solutions to
fuel recovery and recycling,
enabling us to
make a difference to
their bottom line.
ARA is also the vehicle
that allows Lamb Fuels
to give back some of what it has earned
through participation in the Educational
Foundation, LARA, and ARA.
With this long history of service to the
automotive recycling industry, Lamb says,
“Our mission is to provide the most innovative
Fuel Recovery Solutions to our
customers to maximize their savings and
revenue, to sustain our growth and
recover the highest quality fuel available.”
When deciding on whether fuel recovery
services are a good match for your
facility, Lamb suggests, “Volume and
internal policy dictate whether the use of
Lamb Fuels services are a good match.
Organization, production efficiency,
cleanliness and throughput volumes are
all characteristics of yards which we feel
set them apart from each other as well as
being good business practice.”
“Our services reduce the amount of
waste in storage tanks, reduce the
amount of fuel converted or generated
into a waste,” Lamb explains the benefits.
“Our process reviews result in ‘Fuel
Recovery Solutions’ that produce innovative
changes that equal savings and
The Lamb Fuels headquarters team, led by CEO Greg Lamb, far right.
additional revenue. The increased savings
and revenue are the result of proactive
participation and the efforts of all
parties involved. Like anything, you get
out what you put in and you have to want
to change.”
Looking back, Lamb reflects, “When I
began expanding Lamb Fuels in 2003,
we were paying between 15 and 25¢ per
gallon of gasoline and serving a few independent
family-owned yards. Today,
prices are closer to $1 per gallon and the
majority of our customers are corporate
facilities. All of us at Lamb Fuels believe
that we are fortunate to be in business,
working with the auto recycling industry,
have great customers and enjoy the
value of ARA membership.”
The ARA Educational Foundation is
appreciative of the unique vacation package
from the Lamb family, as well as all
the other donations given to support this
auction. We look forward to seeing the
vacation photos from the lucky winners!
To find out more about Lamb Fuels’
Fuel Recovery Solutions, call (619)
421-0805, or visit www.lambfuels.com. ■
January-February 2013 | Automotive Recycling 7

ARA Action
Latest News and Reports from ARA
Summary of Committee Meetings Held During Convention
Automotive Recyclers Association’s ongoing Committees met during the
69th Convention and Exposition in Orlando. The ARA Committees have
the overall purpose to advance members interests in specific areas.
Highlights of the discussions during the sessions are as follows:
Affiliate Chapters Meeting
The ARA Affiliate Chapters Committee
is co-chaired by Martha Cowell (State
of California Automotive Dismantlers
Association) and Steve Fletcher (Automotive
Recyclers of Canada). Representatives
from 18 of ARA’s Affiliated
Member Chapters attended the meeting,
each providing an update of their chapter’s
accomplishments during the year, a
description of membership composition
and statistics, as well as goals for 2013. Key
themes that several Affiliates touched on
included recruitment and retention of
membership, running a profitable association,
the importance of coalitions with
industry stakeholders, the importance of
education for recyclers, as well as local
stakeholders – legislators, law enforcement.
The Committee is planning a series
of conference calls to discuss these issues
in more depth and to share information
and resources.
Safety
Safety Committee Chair Doug Reinert
and members of the committee met
and reviewed the progress of the committee
since it was established early in
2012. To showcase the safety tips developed,
the committee made available laminated
cards on a ring, illustrating the
safety tips, to hang up on employee bulletin
boards. As new tips are developed,
they can be added to the ring. Committee
members also received requests for the
tips to be presented in a poster format
and to be in both English and Spanish.
Suggestions for tips to be drafted next
included container labeling, powered
industrial trucks, and first aid issues.
Governmental Affairs
The ARA Governmental Affairs
Committee, chaired by Norman
Wright addressed issues of direct importance
to automotive recyclers. The
National Motor Vehicle Title Information
System (NMVTIS) discussion generated a
motion to institute an NMVTIS Working
Group chaired by R.D. Hopper that
would identify ways to make NMVTIS
work more effectively. There were also discussions
on the mercury switch removal
program, state model legislation resources,
and the importance of the bid
card legislative battle raging in Ohio.
Electronic Commerce
The Electronic Commerce Committee,
chaired by Greg Beagell, previewed
the new Web version of the ARA Recycled
Part Description Standards recognizing
that market conditions have changed
since the last version was published. The
committee provided easy access to the
Standards for all, including consumers.
The update reflects changes in vehicle
types and technologies such as hybrids
and plug-in vehicles. Since consumers
would now have access to the Standards,
there is a need to include many part types
not included in previous versions.
The process of creating the updates
needed to change to make it easier to
publish new and updated versions without
the delay experienced in the past.
And finally, to make it easier to implement
at every level of the recycling
process, the definitions are in synch with
COMMITTEE MEMBERS IN ACTION
8 Automotive Recycling | January-February 2013

ARA Action
Continued
the Interchange used throughout the
industry. This Standard is intended to
promote commerce in recycled automotive
parts. Each recycled part assembly in
this new electronic document gives a
complete description of what is recommended
to be included with the assembly
as delivered for reuse.
Events Advisory
The Events Advisory Committee met to
discuss the disposition of the 2012
convention as well as initial discussion for
2013 in Phoenix. Committee members
were advised of upcoming dates and locations
for the Annual Convention as follows:
Nov. 6-9, 2013 Phoenix, AZ
Oct. 22-25, 2014 Nashville, TN
Oct. 7-10, 2015 Charlotte, NC
Oct. 26-29, 2016 Baltimore, MD
The Committee was also provided with
an outline of Events Advisory Committee
responsibilities for review and consideration.
All were asked to carefully review
and provide feedback during the next
conference call.
Technical Committee
Technical Advisory Committee Chair
Andrew MacDonald and committee
members discussed several issues at its
recent meeting during ARA’s convention,
Eric Schulz, Gold Seal Committee chair, and Fran Reitman
listen to Ginny Whelan at their meeting.
including future relationships with the
Society of Automotive Engineering
(SAE), restarting the fluid study, stormwater
measurements, and hybrid battery
management. The Chair also reviewed
the mission of the Committee as stated in
ARA’s revised committee guidelines and
noted that the TAC’s main objective is to
“focus on automotive technology and
research development and to consider
their impact on automotive recycling.”
Regional & At Large Directors
The ARA Regional & At Large Directors
Meeting was chaired by outgoing
Chairman Mike Swift who became a
member of the ARA Executive Committee.
The Directors all provided individual
region reports covering such issues as
scrap, sales, salvage availability, stormwater,
OHSA and more. The group said
thank you and farewell to outgoing
Directors Mike Swift, George Sapir, and
Tom Farlow. The new Directors taking
their region positions are Greg Bender,
Paul Davis, and Tammy Sturgeon. Also
new to the At Large Directors are Norm
Wright, Chuck Ossenkop and RD
Hopper.
Gold Seal
The Gold Seal Committee, chaired by
Eric Schulz, previewed the new Web
site and administration platform for the
new CAR & Gold Seal accreditation
alliance.
The ISO-9001 CAR Gold Seal research
project was reviewed. The committee
approved communication for committee
business utilizing Basecamp.com. Review
of new International Gold Seal Affiliate
Guidelines and Applications was moved
to the next committee meeting for consideration.
CAR
The CAR Committee announced the
addition of Chad Counts as a new
Committee member, as well as forty-eight
new CAR Members who were welcomed
into the program.
2013 is a Professional Audit Year for all
CAR Members, with a due date of
October 1, 2013. The CAR Auditor list
has been updated for anyone who needs
a suggestion. Ginny Whelan spoke about
the International Accreditation Program
for CAR and Gold Seal. There was an
update on the progress of the new website.
Ginny is also working on a State
Affiliate Gold Seal Program for Canada.
PAC Board Meeting
The ARA PAC Board met to review
2012 receipts, disbursements and
plans for fundraising for the remainder of
the year. In the immediate months preceding
the Convention, receipts totaled
$3,700. Ten disbursements were made to
incumbents, challengers and House leadership.
ARA PAC lapel pins were distributed
to all contributors and a private
reception was held. ■
10 Automotive Recycling | January-February 2013

Marketing 101
By Mike French mike@mikefrench.com
Social Media: Twitter, Facebook & LinkedIn
With 60 percent of the automotive
recycling industry not computerized
in their businesses, those who are should
be taking full advantage of new technology
to communicate with customers and
prospects to get a competitive edge.
Emerging social network platforms
have turned the world of business on its
ear and changed how many companies
sell parts. If you don’t use social media
like Facebook, Twitter or LinkedIn – you
should! The following is a short explanation
of the most popular platforms.
Socially Savvy
The best way to define social media is
to look at how it is different from mainstream
media, such as newspaper, radio,
and television. Mainstream media is a
one-way instrument of communication.
You can reach or impact people through
the newspaper or television, but you cannot
judge the response to your efforts.
Social media, on the other hand, provides
the ability to more easily communicate
in co-responses – yours, theirs, and
others who might chime in – to your
efforts. Social media makes the transfer of
text, photos, audio, video, and information
in general, increasingly flow among
Internet users.
Platforms like Twitter, Facebook, and
LinkedIn have created online communities
where people can share
as much or as little personal
information as they desire with
other members. The result is
an enormous amount of information
that can be easily created,
shared, searched, promoted,
and even disputed.
Social media has relevance for regular
businesses, as well. While others exist,
I will discuss the three main sites here.
TWITTER
Twitter is a social site designed to let
people share short messages, up to 140
characters called “tweets,” with others. It
is popular with younger generation users.
To get started, you must open a free
Twitter account and create a Twitter
name at www.Twitter.com/signup.
Decide what the purpose of your
Twitter account is going to be. This will
allow you to post Tweets that are focused
and based upon the purpose of your
Twitter timeline. Let’s say that your purpose
here is to share tips about using and
buying recycled automobile parts. With a
central focus, your followers will know in
advance that your Tweets will be about
recycled parts. If you write great Tweets,
your followers will tell their friends to follow
you on Twitter, too.
There are three basic ways to get
Twitter followers.
• Publicize to your existing market your
Twitter name.
• Use “hashtags” (this is an actual
pound (#) sign with a series of words following
it with no spaces, used anywhere
in your Tweet). Example: #usedautoparts.
It is a way to categorize your tweets and
reach a market searching for something
specific.
• Search out and then communicate
with your desired market. Example: If you
iStockphoto.com/tumpikuja
stock used Honda parts, you would communicate
with people who are Honda
enthusiasts. You could look for those in a
Google search or look for #Honda. A
great book to read that will help you get
up to speed is, Twitter Power: How to
Dominate Your Market One Tweet at a Time,
by Joel Comm.
FACEBOOK
Facebook is a social networking site
with over 901 million monthly active
users. It allows the sharing of updates,
photos, announcement of events, and
other activities. There are two types of
Facebook pages: Personal and Business.
In order to establish a business page,
you must first have a personal page. To
get started, go to Facebook.com and follow
the easy instructions to sign up. Then
you can setup your business page at
www.facebook.com/business. They also
include practical tips and advice on establishing
a good business Facebook page
that you should read.
Some companies opt to have only a
Facebook page rather than a website if
their purpose is only to communicate
with their customers. While a website
would likely result in a direct sale,
Facebook is used for farming a new customer
base, relationship building, and
company branding.
The most effective use of
Facebook is to communicate
directly with your customers
on daily specials and useful
information that they can
share with their own network
of friends.
There are three basic ways to
generate followers or “likes” for your
page.
• Advertise your Facebook address to
your existing customers.
• Use Facebook.com/ads, in which you
can directly target individuals by location,
demographic, age, gender, and interests.
12 Automotive Recycling | January-February 2013

Marketing 101
Continued
• Use a third-party service, called an
“application,” to create a contest with
prizes for your existing customers who will
share your facebook address on their facebook
pages.
LINKEDIN
LinkedIn is a social networking site, just
like Facebook and Twitter, but with a
strictly business point of view. It is very
popular with professionals who connect
to their colleagues and even present their
portfolio and resume on this platform.
LinkedIn allows you to create a personal
profile to promote your skills, knowledge,
and experience while allowing you to connect
with professionals in your field in
order to do business.
As you build your profile you can
request and receive recommendations
from people you have done business with
in the past. These recommendations add
value to your online resume and will help
build trust in what you have to offer.
To start, go to www.linkedin.com to sign
up for your free account. One of the most
effective elements of LinkedIn is the profile.
It’s important to be sure that your
LinkedIn profile is complete and includes
relevant and detailed information about
your skills and experience. Your profile is
used to connect with people in your network
and is the vehicle by which you are
found.
To enable your LinkedIn profile to
make valuable connections, you should:
• Have all the same information that is
on your resume including your qualifications,
your experience, and your skills.
• Fill out your profile like it’s an executive
bio, including past companies, education,
affiliations, and activities.
• Upload a headshot to your LinkedIn
profile. Be sure the photo represents the
professional you and isn't too casual.
• Create a company profile, in addition
to your personal one, to list everyone who
works at your business, as well as good
information about the company’s products
and services.
• Make your profile public – that’s how
the world can find it.
• Customize your URL to give you a
link that’s easy to share.
Setting up your business on LinkedIn
isn’t going to generate a bunch of leads,
but it does offer an opportunity to boost
your online presence. You can embed
banner images and videos in your page,
as well as feed your blog posts and tweets.
You can also feature products and seek
recommendations for them which enhances
your credibility.
Whether you are a large or small company,
you should be using every form of
free electronic advertising you can to promote
your business. Now go put it to work
for you. ■
Mike French, President of Mike French &
Company, Inc., can be reached toll free at 800-
238-3934 or visit his company’s website at
www.MikeFrench.com.
14 Automotive Recycling | January-February 2013

On the Road
By Sandy Blalock bconsulting4u@gmail.com
Grass Roots Industry Building, One Trip at a Time
Ihave seen, really seen, more of this country
in the last two years than I have in
a very long time. You might not understand,
knowing I have traveled near and
far over the last 10 years or so during my
tenure as a member of the ARA Executive
Committee, and beyond, but what I
mean is I have actually seen and experienced
some of the areas I have traveled.
I no longer just fly in and take a cab to
wherever my meeting might be, viewing
what I can from a cab or the plane on
landing and take-off. I now fly in, rent a
car, and drive around to take in the areas
I now visit. If you have the opportunity
and time, this is the real way to see the
country we love.
When I resolved that the next phase of
my career would be to serve as an industry
advocate, I was certain that I had to
actually know the people I would work
with and see where they worked. I began
my adventures in New Mexico because,
being a native of that state, it was really
important to me to advocate for my
friends, neighbors, and fellow New Mexican
auto recyclers.
I consider myself quite fortunate to call
the Land of Enchantment my home but
few outside New Mexico really know
what that means. Our multicultural people,
their heritage and traditions, their
skills and their arts, and the land and its
awesome beauty, all make New Mexico a
unique and colorful place. I was prepared
to familiarize myself once again
with the state and its auto recyclers to
find out what I could do to help them.
I started my new-found mission driving
my trusty Subaru Outback with Garmin
GPS assistance to the southeast part of
the state. I visited many of the recyclers
in the area known to most as the place
where the aliens landed many years ago,
outside Roswell. What I found on my initial
visits were frustrated auto recyclers
who thought nobody cared and nothing
would ever change. I found a family-run
Working together, we can and will change and
improve conditions for the industry to thrive.
auto recycling facility that took a stance
against an unlicensed recycler operating
right next door to them. They fought
against the odds and many threats to
their safety to make sure this guy got shut
down. He was shut down, and his vehicles
were seized and processed by this
local licensed recycler who, I found,
cares just as much or more as I do about
making sure we continue to fight these
type operators.
I could tell that something was needed,
and it was needed now. I next visited the
southwest part of the state and found
much the same. As in many states, we are
plagued by unlicensed activity that strips
many licensed and qualified recyclers of
their salvage. After visiting the other areas
of the state and finding and hearing
more of the same, I now knew that I
could not turn back and had to plunge
into this head-on and help my friends.
After reconnecting with many that I
had not seen in a very long time, and
meeting some I never knew, we together
determined that we needed to work to
solve the problems of every auto recycler
in New Mexico. I had the time and they
gave me the energy to move forward.
This group of recyclers keeps me energized
to continue to work on issues facing
recyclers not only in New Mexico but
in all 50 states. Not all have the time to
serve, but they all have a story to tell and
I am going to make sure these stories are
heard.
Since our initial meeting of the New
Mexico Certified Automotive Recyclers
Association two years ago, we have held
two successful conferences that brought
education, industry outreach, and
exhibitors to New Mexico. Many of our
members are very small family owned
and operated businesses. Leaving their
businesses to attend a national conference
is difficult. Working together, we
have brought some of that experience
right here to their home, where they can
spend a day working side by side with fellow
recyclers, as well as partners in law
enforcement, environmental agencies,
motor vehicle division, taxation and revenue,
educators and industry vendors,
and others to enhance our industry from
the inside out.
Unfortunately, there are so many unlicensed
operations in New Mexico that
they most likely outnumber the licensed
facilities. We will continue to fight inside
and outside of the industry until we drive
them out of business. We are proud of
our heritage and our state, and through
our efforts we hope to protect not only
our industry, but our communities that
comprise the Land of Enchantment.
My New Mexico travels will continue, as
will my travels in surrounding states. We
have a remarkable country and a good
system of auto recycling. I know that the
states and provinces with strong auto
recycling associations are helping recyclers
continue to advocate for their
rights. We just need to work together to
make sure that every state has a thriving
association working on behalf of all recyclers.
ARA cannot accomplish what it needs
to accomplish without the assistance of
grass roots support of recyclers in every
state, province, territory, and others from
around the world.
Working together, we can and will
change and improve conditions for the
industry to thrive in the future and I’ve
got your back. ■
Sandy Blalock is a consultant to the auto recycling
industry, traveling to help states without
an industry association formulate them.
She is the former the owner of Capos Automotive
Recycling and an ARA Past President.
January-February 2013 | Automotive Recycling 15

Lessons Learned
By Ginny Whelan ginny@araeducation.com
Family Business – Heaven or Hell?
Family is forever, but blood plus business
isn’t always a recipe for success.
The automotive recycling industry, long
on family businesses, has witnessed
many collapse when the transfer of ownership
and leadership doesn’t go as
planned. Several multi-generational
automotive recycling businesses shared
their experiences at the recent ARA
Educational Foundation (ARAEF)
Family Business Network, an open educational
forum held during the ARA
69th Annual Convention in Orlando.
With a family-run business, handing
control to the next generation can be
tricky. Why do some transitions work
and others fail? The families in the
ARAEF Family Business forum made it
clear the outcome depends on planning,
personalities, and patience. In this
business model, each family member
must have defined areas of responsibility.
If a family member has an issue or a
proposal, there must be a systematic way
to discuss it thoroughly during business
hours. Comments reflecting this were:
“If we have a problem, it is resolved
before we leave,” “the key to family business
success is to respect each other,”
and “giving up control can be extremely
hard.”
Handing over the reins is never easy.
Releasing control is the biggest obstacle
in succession for the family owner, and
a common problem. Backing away a little
at a time is extremely hard. Enlisting
the help of family-business consultants
may be considered to help ease the transition.
The family business owner must have
a pulse on the critical factors that are
important to him or her. It is important
to ensure that all parties involved in the
transition can communicate and plan
with one another effectively. Meaningful
conversations between generations can
be hard, but it is important that both
parties have an understanding of how
the business will continue to operate.
What is common in family businesses
is that people are wearing many different
hats, resulting in a lot of crossover.
That makes it hard to hold people
accountable and to create a succession
plan. Creating infrastructure such as a
mission statement, organizational plan,
and strategic plan can also help the next
generation take over effectively.
You may have heard all of this before
but remain skeptical, thinking it’s a
waste of time. But in terms of sustaining
success, it is greatly needed. Growing
the business without structure can be
accomplished. But without the necessary
structure, any hopes for long-term
succession becomes difficult changing
from a company that Dad ran to a company
with a next-generation leader.
Family businesses must have some
transparency if they’re going to bring in
the next generation as a key leader and
have him or her engaged and held
accountable. The process of stepping
back from leading the company has to
be gradual and planned. Even as the
next generation takes over more of the
day-to-day operations, Dad is always
there to give guidance.
Succession of a family business that
has a multi-year plan can be successfully
achieved, especially with the assistance
of resourceful outside consultants to
help lessen the burden and emotion
and to make sure all the parties derive
benefit from the deal, as well as accountants
to help minimize tax consequences
of the ownership transition.
Family Business Resources:
Family Firm Institute: www.ffi.org
Loyola University Chicago Family Business
Center: www.luc.edu/fbc
ARA University: www.arauniversity.org
85 Family Business Questions
1. Are the family members employed by the
business compensated fairly and adequately?
On what standard is their compensation based?
2. Rate the quality of communication within
your business family on a 1 to 10 scale with 10
being perfect. If your response is “6” or less, what
are the contributing factors?
3. If you were to poll the other family members
in your business and key employees, is there an
explicitly agreed upon vision for where your company
is going in the next 5 years? If not, why not?
4. Are there regularly scheduled meetings for
the purpose of working ON the family, communication,
and relationships?
5. Is there a proven methodology that you employ
for resolving conflict in your family?
6. When there are difficult decisions to be
made, is there a proven methodology for arriving
at decisions or do you often decide “not to
decide” in order to preserve harmony?
7. Are there rules for entry of family members
into business management?
8. Are there rules for entry of family members
into business ownership?
9. Is the future ownership of your family company
clearly defined? If not, why not?
10. Is there the potential for ownership in your
enterprise to be fragmented in the future (or
right now) so no one person controls? If so, what
anti-deadlock provisions have you got in place?
11. At this stage in your business life, being
brutally honest, is your business generally
adding to the quality of your life, or is it gradually
draining the energy away from you?
12. What, ultimately, do you want to get out of
the business? Why do you work as hard as you do?
13. What is one item in your family or business
that has been nagging you for some time and
that you’ve been meaning to clean up? What is
holding you back from cleaning up this persistent,
uncomfortable issue?
14. What’s the one relationship in your family
or business family that causes you the most concern?
If that relationship were to improve dramatically,
what types of benefits would you see?
15. What objective criteria do you use in evaluating
your children’s strengths, weaknesses,
16 Automotive Recycling | January-February 2013

Lessons Learned
Continued
skills, and talents as you attempt to evaluate
their potential as successors? Where are you
most confident in them? Doubtful?
16. If you own a business with siblings or
cousins of the same generation, what are your
exit plans? Are you inadvertently creating a race
for the door or last man standing between you?
17. What are your provisions for you to exit
your business with financial security assured?
18. Is there a liquidity plan for buying back the
stock of departing shareholders?
“Drop Dead” Planning
19. How many hours per week are you working
now? Are you working harder or less hard than
you did 5 years ago? If you’re working harder now,
what is your plan for gradually slowing down and
enjoying some of the fruits of your labor?
20. How much time do you take away from the
business for rest and relaxation (vacations at
your industry or trade conventions or when you
do work at home or at the beach don’t count)?
Ideally, how much time would you like to take
off? What’s holding you back from having as
much vacation time as you would like?
21. On a scale of 1 to 10, how well do you think
you manage your time? If your answer is a “6” or
below, what do you have to do to get your time
management and personal effectiveness skills
up to an acceptable level?
22. Have your wills and associated trust documents
been updated in the past 3 years? If not,
why not?
23. Do you have the following: Declaration for
Desire of Natural Death, Power of Attorney, and
Healthcare Power of Attorney? If not, why not?
24. Do your testamentary documents assure
your family business privacy after your death?
25. Are your assets titled properly between you
and your spouse in order to take maximum advantage
of the estate tax laws?
26. Do your testamentary documents specifically
address the disposition of your business?
27. Do your testamentary documents agree
with other business arrangements such as buysell
agreements?
28. Do you pass ownership of the family company
to your spouse in your testamentary documents
as a tax avoidance measure? If so, does
that make practical sense, and is that consistent
with the wishes of your spouse?
29. If the business ownership does go to your
spouse, is there the potential for your children to
inflate his/her estate thereby increasing their estate
tax burden during his/her surviving lifetime?
30. What are your testamentary provisions for
treating your employee and nonemployee children
fairly and equitably?
31. In your “drop dead” planning, do you have
insurance proceeds includable in your taxable
estate? If so, why?
32. For your real estate, do you use Family
Limited Partnerships or Limited Liability Companies?
If not, why not?
33. If there is more than one shareholder in
your family enterprise, do you have a binding,
modern buy-sell agreement? If not, why not?
34. Does your agreement cover atypical items
such as disability, “bad boy” behavior, windfall
sale, non-compete provisions, etc.?
35. Do you have a written plan for when your
family members get home from your funeral to
lessen the burden on them? If not, why not?
General Closely Held Questions
36. In the future, will your business go to family
members, some of whom are employed in the
company and some of whom are not? If so, what
provisions will you make to balance the interests
of employee versus nonemployee shareholders?
37. If you were to drop dead, could your family
and/or business survive the “triple whammy” of
loss of the family patriarch, loss of a key family
business manager, and the potential for ruinous
estate taxation? What is your contingency plan?
38. Your CPA, attorney, and other advisors have
probably been after you for some time to address
the issues of your exit, future management
of the company, your estate planning, etc. What
are the barriers that prevent you from tackling
these tough family business issues?
39. Do you worry about giving your children
too much in the way of assets too soon? What do
you see as the downside of “affluenza”?
40. Will your children inherit the business in
equal portions or will one child be designated
the “prize pig” and receive a larger proportion?
What are the pros/cons of each course of action?
41. List your top 5 frustrations in the family
business.
42. Thinking objectively, what are the marketing
strengths of your family business?
43. Thinking objectively, what are the sales
strengths of your family business?
44. Thinking objectively, what are the operational
strengths of your family business?
45. Thinking objectively, what are the administrative
strengths of your family business?
46. Thinking objectively, what are the marketing
weaknesses in your family business?
47. Thinking objectively, what are the sales
weaknesses in your family business?
48. Thinking objectively, what are the operational
weaknesses in your family business?
49. Thinking objectively, what are the administrative
weaknesses in your family business?
50. What do you consider to be the main
threats facing your business in the next three
years?
51. If your family business were to fail in the
next three years, what would you predict would
be the most likely cause(s)?
52. Being brutally honest, can you recite your
company’s mission statement by memory? If not,
why not?
53. Are there regularly scheduled meetings for
the purpose of working ON the business?
54. Is there a proven methodology that you
employ for resolving conflict in your business?
55. What skills or training do you need to be
more successful in the family enterprise?
56. What skills or training do other people
need to be more successful in the family enterprise?
57. How profitable are you versus your peers in
your industry? Into what percentile do you fall?
What are the reasons for your position?
58. What are your corporate goals for this
year? If you were to assess other managers in
your company, would their goals be the same?
Are you all on the same page?
59. Is the future management of your family
company clearly defined? If not, why not?
60. Do you use a formal or informal Board of
Advisors or Board of Directors? If not, why not?
61. Do you have regular senior management
meetings to discuss your strategic plan, business
plan, capital plan, human resources, etc? If not,
why not?
62. Do you have a written organization chart
for your enterprise and do you manage to the
organization chart, or is it just a nice piece of
wallpaper?
18 Automotive Recycling | January-February 2013

63. Do you have the right people (especially
family members) in the right positions in the
company for now (and for the future)?
64. Do you have written job descriptions for
family and non-family employees? If not, why not?
65. Is the authority embodied in the job descriptions
defined and supported? If not, why not?
66. Do you regularly conduct employee performance
reviews and schedule sessions for appropriate
feedback? If not, why not?
67. Being as objective as you can, if you were to
evaluate your top 10 family business employees
and the jobs they are doing, if you were to start
your business from scratch tomorrow, would you
hire them again? If not, why not?
68. Do you have a customer satisfaction program
in place that gives you formal feedback
about how your customers view your company?
If not, why not?
69. Do you know what your “critical success
factors” are for your business? If not, why not?
70. From a sales standpoint, what are your
competitive advantages? Disadvantages?
71. Who is the next leader of the family enterprise?
Is this clear to everyone, or a big secret
and potentially a bone of contention?
72. Are there rules for distributions of funds
from your family enterprise (above and beyond
employment compensation)?
73. Are there policies in place for appropriate
handling of corporate profits in order to balance
the needs of the corporation, employee shareholders,
and non-employee shareholders?
74. If you didn’t come to work for the next 6
months for whatever reason, in what condition
would your business be upon your return? What
would likely have happened to your most valuable
asset during your absence? Why?
75. At this stage in the evolution of the family
company, what is your return on investment
(both financial and non-financial)? Are you getting
a sufficient rate of return to fairly compensate
for your blood, toil, sweat, and tears.
Bonus Questions
76. What new capabilities must you, your employees,
or your company acquire to stay competitive
over the next 5 years?
77. If you don’t have children who are capable
of taking over the business at your retirement,
what is the best course of action? Should you
close it, sell it to insiders, or sell it to outsiders?
78. You’ve made a decision to hire some new
talent; how do you objectively quantify the candidates’
qualifications for the job and abilities to
do the job effectively?
79. What are your recruiting processes when
it’s time to hire new talent? Do you have formal
procedures that produce predictable results, or
is it an informal unpredictable process?
80. What are the three most important things
you should focus on that would be the most productive
for your company in the next 90 days?
Determine about how much time you currently
spend on those items. If you spent more time on
them, what kind of results could you produce?
81. What do you have TOO MUCH of in your
business?
82. What do you have TOO LITTLE of in your
business?
83. What do you have TOO MUCH of in your
family?
84. What do you have TOO LITTLE of in your
family?
85. What would be the one thing you would
change about your family or business? ■
Ginny Whelan, an ARA Past President, is Managing
Director of the ARA Educational Foundation
and founder of the ARA University, the
leading Web-based training resource in auto recycling
education. Visit www.arauniversity.org.
January-February 2013 | Automotive Recycling 19

Insure This
By Wells Fargo
Loss of Business Income
When it works properly, Business
Interruption Insurance (now referred
to as Loss of Business Income) can
make the difference as to whether or not
your business survives after a major loss.
This is the only insurance you can buy
that protects your income statement. All
of the other coverages you buy covers
some type of property or liability (i.e.,
buildings, contents, equipment, general
liability, etc). But, if your business is
destroyed by a covered peril and is “out
of business” for some period of time, loss
of business income insurance will put
back in your pocket your monthly net
income plus any other continuing
expenses you will be required to pay
whether you are in business or not (such
as mortgages, loans, taxes, rent, utilities,
and payroll should you choose to include
it). Unfortunately, the complexity of this
coverage often causes costly misunderstandings
that can ultimately cost you
your business.
Loss of Business Income insurance
appears to be straightforward but, in fact,
it is fraught with pitfalls – particularly
when determining exactly how much of
this coverage you should purchase.
Coming up with the right type and
amount requires that you understand
what it is, that you have accurate accounting
records, and properly estimate the
length of time your business could be
shut down by a major claim.
The best place to start is to understand
exactly what Loss of Business Income
Insurance is. As stated earlier, it insures
loss of income in an amount sufficient to
cover profits and ongoing expenses during
the time you are unable to operate
your business after a severe claim. Please
note that you do not have to be operating
profitably to benefit from this coverage.
You may purchase this coverage just
to cover on-going expenses and salaries of
key personnel, so don’t consider this coverage
only as insurance against loss of
profits.
Of course, not every shutdown of your
operations will trigger coverage. There
must first be damage from an insured
cause during the term of your policy that
ultimately causes an interruption of normal
operations and a loss of earnings.
The policy will pay for the loss incurred during the time
it takes to re-build, repair, or replace damaged
property with “reasonable speed.”
This coverage will pay for the loss of those
earnings during the time required to
restore your business to the “pre-loss”
operation or until the limit of Loss of
Business income coverage is exhausted.
The policy will pay for the loss incurred
during the time it takes to rebuild, repair,
or replace damaged property with “reasonable
speed” – not the time it takes an
ill-prepared owner to “actually” rebuild or
repair the premises.
Most carriers today write Business
Income insurance on a Valued Basis.
That is, a fixed amount of insurance that
covers loss of use of the property
insured. Commonly, you select a specified
amount of coverage for each month
you are shut down. There is usually no
coinsurance requirement – no stipulation
that you must insure some fixed percentage
of lost earnings or production.
However, you could wind up underinsured
if you buy too little coverage per
month – or for an insufficient number
of months to rebuild.
The place to start when calculating the
appropriate amount of Business Income
coverage is a Business income worksheet.
However, before you complete a worksheet,
it is important to review your
accounting records. The records in your
financial statements will provide you the
basic information you need to complete
a business income worksheet. One more
precaution before we go on to the worksheet
itself – your financial statements are
based on your fiscal year. Worksheet computations
must be based on the 12
months immediately preceding the policy
year.
The Business Income worksheet is the
key to avoiding an underinsurance situation.
The worksheet requires that you
come up with income and expenses for
the 12 month period prior to the policy
inception, and projected income and
expenses for the 12 months beginning
with the inception of the policy. The projected
figures are the ones you will use to
determine the amount of coverage you
need for the coming policy year.
Once you have reviewed and become
familiar with your accounting records, it
will be fairly simple to complete the
Business Income worksheet that will
result in the proper amount of coverage
needed to sustain your livelihood until
your business is operating again. The
Business income worksheet is available
from your insurer, and you should seriously
consider this coverage when purchasing
your insurance. It could be the
difference between your business failing
or surviving after a catastrophic loss. ■
For more information on how Wells Fargo Insurance
Services can benefit your business,
contact Bill Velin at 800-328-6311, ext. 3039,
direct 952-830-3039, or by e-mail bill.velin
@wellsfargo.com.
20 Automotive Recycling | January-February 2013

Momentum
By Donald Cooper www.donaldcooper.com
Success Starts with You
iStockphoto.com/marekuliasz
Every business is the sum total of the
performance of all the people
involved. To prosper, we must achieve
world-class performance, individually and
collectively, regardless of the size or
nature of our business.
There are many reasons for our staff
not performing and, surprisingly, most of
those reasons are not their fault. In fact,
in the majority of cases we, as bosses, have
set them up to fail. Check out the 11 possible
reasons for your staff not performing,
shown below, and think about what
needs fixing in your business to improve
performance.
1. They don’t understand what you
want done, the standard to which you
want it done, or by when you want it
done. There’s a lack of clarity.
Lack of clarity is one of the biggest causes
of non-performance in most businesses,
and it’s generally not the employees
fault. Creating clarity is your job ... do it.
Make sure that everyone in your organization
is clear about what is expected of
them, and why it’s important.
2. They lack the skills, information,
tools, time, or empowerment to do the
job effectively.
As much as you’d like to blame your
employees for not performing, none of
this is their fault. Make sure that every
employee has the skills, information,
tools, time, and empowerment to do the
job they’ve been given.
3. There’s no process in place, so it’s
done differently each time. Sometimes
it’s done correctly ... and sometimes not.
Sorry, once again, not their fault.
They’re not in charge of “process,” you
are. Everything that happens between
intent and delivery is “process.” Without
it, you will not get the consistent outcomes
you’re looking for.
4. They don’t understand why their job
is important.
OOPS, your fault again. According to
many surveys, the #1 reason that employees
stop trying is they believe that they
don’t make a difference.
Make sure that every employee understands
how their job affects customers, the
team and the bottom line. Reinforce that
over and over.
5. It doesn’t have to be done at all! You
just think it does. They get that ... and
you don’t.
This one’s a bummer. They understand
the reality of the situation better than you
do. They’re trying to save you time and
money by not doing something that’s
wasteful or unnecessary, and you see it as
non-performance.
6. They have a better way to do it and
have the guts to do it the better way and
hope that you won’t notice. But you have
noticed, and you see it as non-performance.
These people are “gold.” They’re smart,
they “get it,” they care, and they take initiative.
Don’t beat up on them. In fact,
maybe you should promote them, or at
least hug them.
7. A personal problem or crisis is distracting
them.
Sometimes good employees go into a
tailspin because of some personal problem
or crisis. The road of life contains potholes.
Now is your time to shine as an
organization. Now is the time to show
what you’re really made of. How can you
and the rest of the team pitch in and support
these folks?
But, be clear which problems or
crises you are and are not prepared to
support. You may be absolutely determined
to help an employee with a
sick child or an ailing parent, but not
to support an employee with a
cocaine addiction, or one who beats
their spouse, or threatens the life or
safety of fellow employees.
8. They’re good people in the wrong
job.
We’ve all seen this one. Many of us have
been the “square peg in the round hole”
at some Donald point Cooper, in our MBA, career. HoF, is a Toronto-based We were
given a job international or task management for which speaker we and simply coach.
were not He well-suited. helps business For owners example, and managers there rethink,
refocus and re-energize their business to
are people who are great at managing
22 Automotive Recycling | January-February 2013

people and there are people who are
great at managing things.
Never put a person who’s great at managing
things in charge of a bunch of people.
It will end badly. Before sacking
someone who seems to have some very
good qualities, but who is not performing,
see if some other job would make
excellent use of their talents and personality.
9. They’re underpaid or underappreciated
and they resent that.
OOPS, sorry, your fault again.
Underpaid people feel that they’re being
ripped off so they either lower their performance
to the level that they think
they’re being paid for, or they leave.
Unappreciated people just wither away
like a plant that hasn’t been watered.
Create a culture of acknowledgement
and appreciation. Look for behavior to
praise, reward, and celebrate. A “thank
you” every day. As the boss, you are in
charge of the culture of your organization
or department. Do the job.
Lack of clarity is one
of the biggest causes of
non-performance, and
it’s generally not the
employees fault.
10. The job is beyond their mental or
physical abilities.
You’ve put someone into a job that they
are physically or mentally incapable of
doing, often with the best of intentions.
But it’s not their fault. They gave it their
best shot, but they can’t perform as
required. Rather than beat them up for
non-performance, graciously guide them
into a job that they can do, or help them
exit the organization gracefully.
11. They simply don’t want to do it.
They’re lazy, irresponsible, or have a
toxic attitude.
Some people are simply poor performers
for reasons that exist entirely
within themselves. It’s how they’re
“wired,” or how they’ve been raised. You
don’t have the time or resources to save
these people and they are, well, toxic.
Move them out of the organization as
quickly as possible. Good people leave
because bad people are allowed to stay.
In conclusion: There you have it. Eleven
reasons for non-performance and most of
them are not our employees’ fault. We
need to manage smarter. Based on what
we’ve learned here, how might you
improve the way that you recruit, promote,
train, communicate with, reward,
acknowledge and celebrate your team?
Specifically, what needs doing or fixing ...
and who will make it happen, by when? ■
Donald Cooper is a Toronto-based international
management speaker and coach. He
helps business owners and managers rethink,
refocus, and re-energize their business to sell
more, manage smarter, grow their bottom line,
and have a life. Reach him at (416) 252-3704 or by e-mail at
donald@donaldcooper.com. Visit www.donaldcooper.com.
January-February 2013 | Automotive Recycling 23

Safety Matters
Submitted by the ARA Safety Committee
Electrical Standard - OSHA 1910 (301-399) Panels and Circuit Breakers
Blocking electrical panels that house
circuit breakers is a violation of both
Occupational Safety and Health Administration
(OSHA) regulations and
National Fire Protection Association
(NFPA) codes. You must have a minimum
of 36" (3 feet) of clearance around
electrical panel serving between 120 and
250 volts. Many use colored tape to mark
off the required clearance space or wall
and floor signs.
Accessibility
OSHA requires sufficient access and
working space around all equipment
serving 600 volts or less. For equipment
serving between 120 and 250 volts, there
must be a minimum of three feet of clearance.
The width of the working space in
front shall be 30 inches minimum or
width of the equipment and the working
space shall permit at least a 90 -degree
opening of equipment doors. This space
cannot be used for permanent fixtures or
temporary storage. Sufficient headroom
– 6.5 feet – is also required in the
workspace.
If someone must use portable ladders,
stools or chairs to reach the electrical
equipment, it is not considered readily
accessible. Climbing over or moving furniture
and other impediments to reach
the equipment also constitutes a violation
of the “readily accessible” standard.
At least one entrance not less than 610
ARA Safety Tip on OSHA’s Electrical Panel Requirements
If the area around your circuit breaker box looks like either one of these pictures you will be fined
by OSHA!
Ensuring that your facility has a minimum of 36" (3 feet) of clearance around electrical
panels serving between 120 and 250 volts could save you thousands of dollars in fines. Many
use colored tape to mark off the required clearance space as well as wall and floor signs.
OSHA requires electrical panels to be easily accessible and that the areas surrounding the
panels be clear. Also, circuit breakers must be clearly labeled and electrical panels must be
closed and have a dead front panel. The box door should be able to open to a 90 degree angle
without obstacles.
So don’t delay. Clear away the clutter blocking your circuit panels and read the attached
protocol so you are fully aware of OSHA’s clearance requirements.
Climbing over or moving furniture and
other impediments to reach the electrical
equipment also constitutes a violation
of the “readily accessible” standard.
mm (24 in.) wide and 1.98 m (6.5 ft.)
high shall be provided to give access to
the working space about electric equipment.
Labels
Circuit breakers must be clearly labeled
with accurate and current directories.
Dead-Front Panels
OSHA requires that electrical panel
boards have a dead front. This is not a
reference to an electrical panel door, but
to the metal that is on the panel that protects
the operator from contact with
exposed wires and the breaker. This standard
is also part of the National Electrical
Code (NEC), which states that electrical
equipment that has live parts and operates
at 50 volts or more is guarded with
an approved enclosure. A dead front is
an area of the panel without live parts
exposed to a person on the operating
side of the equipment.
Electrical panels must be closed and
the panel door should be able to open to
a 90 degree angle without obstacles. ■
Sources
ARA University
www.arauniversity.org/courses.php
Occupational Safety and Health
Administration
www.osha.gov/pls/oshaweb/owadisp.
show_document?p_table=STAN-
DARDS&p_id=9880
National Electrical Code | NFPA.org
www.nfpa.org/NationalElectricalCode
24 Automotive Recycling | January-February 2013

Advice Counts
By Jim Counts jimcounts@wans.net
Selling The Business to the Children
As a result of being a consultant to the
auto recycling industry for 23 years, I
have seen and assisted with a lot of generational
changes. As you can imagine, in
that period of time we’ve had major transitions
of ownership from parents to children.
Many of these business owners were
counting on their children to take over
the business and be their source of retirement.
Then the big question became
how to do this and how to structure the
price of the company.
Quite often, children who have worked
in the business for many years feel like
they should be able to buy the company
at a discounted price simply because of
their length of employment. What they
fail to realize is they are usually generously
paid for the jobs they do. This means they
have already been paid for any growth
that has resulted from their efforts. This
is no different than working for a large
corporation and helping them grow the
company. That corporation does not
have an obligation to sell us any part of
the company at a discounted rate because
we have been paid for the services provided.
Actually at the point of retirement
you’re lucky to get a gold watch because,
honestly, they don’t owe us that.
The business is worth what it’s worth.
Being a child of the owner does not automatically
entitle them to purchase the
business at any price, let alone a discounted
price. The owners of the company
needs the assurance that the
purchaser will be able to write them a
check each month and that check will
continue to cash until the businesses is
paid off. If the owner(s) decides on their
own to sell the business at a discounted
rate they certainly have that option, but
they don’t have that obligation.
One of the major issues which needs to
be resolved and understood upfront is
the ability of the child or children to run
the company. Management skills are not
a gene which always gets passed on at conception.
All too often parents
overlook the shortcomings
of their children. If
there is any doubt about
their ability to take over and
run the company, it needs
to be resolved before any
discussion of succession
takes place. If there is contention
between the parents
on this issue I strongly
recommend that you get
outside advice. We don’t do
our children a favor by selling
them the business only
to have it go bankrupt or
the parents having to come
back in and bail the company
out.
It’s almost impossible to
run a company with a committee.
Someone needs to
have the final say. This
means that if you plan on passing the
business on to more than one child, then
one of them needs to be a majority owner.
Otherwise, the weakest link has as much
authority as the strongest link and this is
a recipe for disaster.
Quite often the parents keep the land
and sell the business to their children.
The upside of this is the parents have a
steady income from rent. The downside
is there needs to be some sort of contract
which states that the new business owners
will end up owning the land at some
point at a specific and affordable price. It
is tenuous at best to run a business in or
on property you do not own. You, at least,
need to have some guarantee of a longterm
lease. Many people use a trust to
accomplish this.
If the family has a “black sheep,” which
most do, then allowing the business or
the property to pass to this person is
another recipe for disaster! Always
remember that “black sheep” picked
their color.
Having been through many of these
generational changes I strongly recommend
that the parents know, understand,
and follow-up on the key performance
numbers of the company to assure that it
remains stable or is growing. If you do not
know what those numbers are or how to
interpret them, we can surely help you.
Selling or transferring the business to
the next generation is something that
needs considerable thought and planning.
Most people will only do this once
in their lifetime and have zero experience
in how to accomplish it. This is one area
were costly advice may be cheap in the
long run.
Remember, if you fail to plan ahead you
will have some judge who has no clue
about running a business deciding who
runs your company. ■
Jim Counts, of Counts Consulting Ltd. provides
organizational and financial development for
dismantlers. He can be reached at 817-238-
9991 or visit www.countsconsulting.com.
iStockphoto.com/hidesy iStockphoto.com/kupicoo
January-February 2013 | Automotive Recycling 25

Sales Call
By Rian Garner rianrgarner@gmail.com
Meet and Greet
What’s in a greeting? More often
than not when we call a business we
get the basics: thank you for choosing our
company, my name is, how can I help you? It
is like our parents always taught us, first
impressions last a lifetime. Too often
when I call on salvage facilities I don’t
even get the basics. I get the name of the
yard and then it is up to me to get the
information.
We all work in an industry that is constantly
changing. Why do we insist on the
same phone etiquette that we have used
for years? I think we can all agree that
our customers do not know what our
facilities look like when they first call us,
maybe they don’t even care, so it places
more importance on how we conduct
ourselves during the initial phone conversation.
I know this sounds like basic blockingand-tackling
for sales, but we all get stuck
in the day-to-day grind and get away from
these solid basics. The fundamentals are
the basic building blocks for success.
I like to compare it to professional athletes.
People do not wake up at the age
of 25 and say, “You know what, I am
going to play in the NFL.” Instead, they
learn the basic fundamentals throughout
the years to be successful. Some may
be naturally gifted and others have to
work long and hard at the fundamentals,
yet both continue to grow everyday.
Our sales people are exactly the same
way. Some are naturally gifted, whereas
others work hard to hone their craft to
make their impact on an organization.
But all of the best continue to hone their
skill on a regular basis.
Back to the matter at hand, making a
positive first impression during the initial
phone conversation. I prefer to answer
the phone so that the customer knows
what company they contacted and who
they are speaking with. When our sales
professionals give the customer their
name, it is a small component of building
trust with the customer. I know personally
I am more willing to give out
more information and have a conversation
when I know the person’s name on
the other end of the phone.
The second step is to ask for the customer’s
name, the name of their business,
and a phone number. Sales people
can use this information to look up the
customer’s account and look at their
purchasing history to get a better grasp
of the customer’s purchasing power. Also
using the customer’s name throughout
the conversation builds a sense of trust,
another key building block of building
long term relationships with our customers.
Asking for the customer’s information
also puts our sales people in control of
the call, asking the questions and guiding
the customer throughout the sales
process. It is imperative that sales people
control the call with the greeting so that
we can quickly determine the customer’s
needs in an efficient and friendly manner.
To clarify the concept of controlling
the call, in our sales training, it simply
means the sales representatives are asking
the questions to the customer — not
the other way around. The customer
called us because they have a problem
and we are the experts to help them
solve it with sourcing the parts that they
need. As sales professionals we guide the
customer through the buying process to
get them what they need and when they
need it.
In short make a positive lasting impression
with your customers. A positively
presented greeting is the first building
block in a successful controlled sales call.
It lays the framework for getting the correct
part, warranty, and delivery for the
customer. The greeting is the first
impression in the phone conversation
and can turn a single one-off call into a
long-term customer. ■
The customer called us
because they have a
problem and we are the
experts to help them
solve it with sourcing the
parts that they need.
Rian Garner has a wealth of experience in both
full-service and self-service auto recycling,
working with LKQ, Greenleaf Auto Recyclers,
and Pick N Pull. His passion for the business,
his education and abilities allowed him to grow
in many capacities within the industry.
iStockphoto.com/seanjames
26 Automotive Recycling | January-February 2013

That’s My Opinion
By Ron Sturgeon rons@rdsinvestments.com
Loan Management ... It’s All in the Details
Iknow, you’ve paid perfectly for 23 years.
And that your loan officer loves you. But
now the bank has some troubled loans, or
has been acquired, or is just changing
policies and/or underwriting requirements.
Loans that used to be gold-plated
are now scrutinized. If any portion of your
loan is secured by inventory, that can get
dicier. Perhaps they have changed the
reports required from you and it’s aggravating.
Or maybe your profits are down.
The prior officer always knew you
would come up with the money, the new
paradigm requires proof. Loans don’t
have to be bad to be called bad. I’m
reminded of one my favorite punch lines,
“I didn’t say it was your fault, I said I was
going to blame you!”
When a bank identifies a loan that
could be in trouble, it is required to assess
how much trouble. They have to note the
file and it gets picked up by examiners.
There are complex rules from the regulatory
agency governing how such loans
should be treated – I won’t bore you with
them, and the bank has a policy of what
to do as well. (This is the part where now
what the banker knows is worse than what
he didn’t know.)
Don’t misunderstand me, the banker
needs to know if your cash flow is going
to be down and your ability to make payments
is in jeopardy. But – if you have
other sources to make the payments, it
may not be necessary to bring it to the
banker’s attention. You shouldn’t hide it,
but always disclose and discuss it in the
context of why it’s not a problem (you can
make the payments from second or third
sources of cash), and what you are doing
to make it better (i.e., improvements, new
contracts or new tenants).
If in fact the repayment of the loan
under current terms is at risk, the lender
is required to set aside bank capital, and
reserve for the potential loss, whether it
be an impairment or total loss. The day
this happens you will be persona non
gratis at the bank. Your loan isn’t earning
the bank money and, in fact, the amount
of that reserve hits the earnings for the
bank immediately. The banker’s first allegiance
is to the bank, and the reserve will
happen. If the examiners discover that
the banker knew of the impairment and
didn’t disclose it and take an appropriate
reserve, the entire bank comes under
grave scrutiny, as does your relationship.
Recent policies of the regulatory agencies
are encouraging lenders to re-amortize
loans (with longer payouts to lower
the payment), and to not “call” them if
the value of the asset is less than the loan
so long as the repayment is not at risk and
the bank is still earning interest.
Curiously, however, the regulations still
require that the problem loans be identified
and capital set aside, so you are likely
done at the bank. If you happen to have
a loan mature while under these circumstances,
the lender is likely to not renew
the loan and if you can’t pay it off, there
will be a foreclosure. Not good. What are
some of the guidelines that are looked at?
• Non-income producing assets as collateral
can’t typically be financed for more
than five to seven years
• You won’t be allowed to pay interest
only (a viable way to lower payments) for
over two years
• A new appraisal will likely be required
• If the loan is to be modified, there
may be fees to the bank
• You may be required to put up additional
collateral
• Your personal cash position will be
very important, whereas it may have not
been scrutinized so closely before.
• Your global cash flows (cash flows
from all sources, positive and negative)
will be heavily reviewed. You may not have
even been submitting a global cash flow
statement in the past.
• You likely won’t be able to move the
loan to a new lender, so don’t count on
that.
What advice can I offer?
• Have the solution before you go to
the bank to discuss it as soon as possible.
Don’t think the lender is going to turn his
head because of your relationship.
• Study and prepare cash flows more
regularly – and understand them.
• Work maturities of loans at least one
year in advance, if practical. If there is
going to be an issue with a renewal, you
need to know now, so you can plan for it
(with your banker’s concurrence).
• Talk to business friends about how
they hear things are going and potential
solutions they might have.
• Talk to bankers that you don’t have
loans with. Find out how they treat such
situations so you can plan accordingly.
Most banks are about the same, though
some may have worse options.
• Work harder, faster and smarter at
implementing solutions.
I solved my issue. I had three loans with
my lender. All three of the commercial
properties had very low debt relative to
their value, and two were doing well. The
lender put all three together on one
extended note, lowering payments. In
this arrangement, the loan to value is
good and the debt service isn’t in jeopardy.
Nothing to report, and no reserves.
I was fortunate that my officer was a senior
lender, because had I had a “relationship”
officer, he would not have had the
horsepower to get it done. One other
note, I have relationships with primarily
community banks and would only recommend
you do the same. Any of the
money center banks would likely have
immediately written up the loan as substandard.
But that’s just my opinion.
This a continuation of excerpts from
Getting To Yes With Your Banker. ■
Since 2001, great ideas to improve your auto
recycling business have been found on Ron’s
Web site, www.autosalvageconsultant.com,
the definitive source for recyclers’ management
and training needs.
January-February 2013 | Automotive Recycling 27

Green Scene
By the Florida Department of Environmental Protection
The 12 Golden Rules for Auto Recyclers
More than 14 million tons of steel are
recycled from end-of-life vehicles at
facilities where spare parts from stripped
or wrecked vehicles are reused, remanufactured,
or redistributed to the public
and body shops as viable alternatives to
more costly new parts.
Automobile recyclers used to be
known as “salvage” or “junk” yards, but
today’s auto recyclers can be sophisticated
facilities with computerized inventory.
Auto recycling is a $22 billion industry
that can cause numerous environmental
problems if processes are not managed
properly.
The Compliance Assistance Program
for Automotive Recyclers, developed by
the Florida Department of Environmental
Protection in coordination with the
Florida Auto Dismantlers and Recyclers
Association, provides Florida’s automobile
recycling facilities with best management
practices to maintain clean facilities
and environmentally-safe procedures,
and a self-audit workbook and checklist
for the recycling facility to evaluate its
progress.
Best management practices, including
waste reduction and pollution prevention,
not only help protect our natural
resources, but also help businesses create
a healthier work environment, prevent
serious injuries or illnesses, reduce longterm
liability risks and reduce the costs of
hazardous waste management and disposal.
The recommended practices for auto
recyclers are known as The 12 Auto
Recycler’s Golden Rules. By implementing
these steps, salvage yards can create a
safer work environment.
The golden rules include:
1. Checking new vehicle arrivals for
fluid leaks, mercury switches and taking
the effort to remove batteries and mercury
switches.
2. Regularly checking core storage
areas to ensure fluids are not leaking on
the ground and core parts are protected
from stormwater.
3. Labeling used oil tanks/containers
as “used oil” and regularly inspecting for
good condition.
4. Labeling antifreeze tanks/containers
as “used antifreeze” and regularly inspecting
for good condition.
5. Labeling gasoline tanks/containers
as “used gasoline” and regularly inspecting
for good condition.
6. Developing and implementing, if
required, a Stormwater Pollution Prevention
Plan.
7. Storing mercury switches and batteries
inside on a pallet or outside in a
leak-proof container away from traffic.
8. Checking refrigerant recovery
machines (R12 and R134a), which
should be in working condition and in
good repair.
9. Marking all drums and storage containers
with proper contents -- no mystery
drums.
10. Maintaining disposal records for
used oil, used gasoline, mercury switches,
batteries, and refrigerant at a central location
on site for a minimum of three years.
11. Addressing spills immediately.
Quickly removing contaminated soils
and storing in a separate, labeled container.
12. Storing waste tires in a central location.
A waste tire processing facility, storing
more than 1,500 tires, requires a
waste tire permit.
Even though the generation of wastes
may be unavoidable, vehicle recyclers can
improve the quality of their environment
through good waste management practices.
Recycling also contributes to the
economy by providing nearly 32,000
jobs in Florida alone, with an estimated
annual payroll of $765 million and revenue
up to $4.4 billion in this state.
The best way to reduce liability and to
increase a business’ bottom line is to recycle
properly. ■
Auto recycling is a
$22 billion industry
that can cause numerous
environmental problems
if processes are not
managed properly.
28 Automotive Recycling | January-February 2013

The Magic
of Change
ARA’s 69th Annual
Convention & Expo
helped auto recyclers
gain insight to
increase their
profitability
for the future.
“
Iperspectives.
came here to get more information, especially to
help with marketing our business,” said Cody
Howard. “I think it’s interesting to get a more global
perspective and understand other’s perspectives within
the industry. It also gives me a chance to share my
It’s been really interesting.”
This was the first ARA Convention that Howard, from River
City Recycling in Virginia, has attended and he was pleased with
what he learned.
With the beautiful backdrop of the Gaylord Palms Resort and the
many theme parks in Orlando, Florida, automotive recyclers and over
100 exhibitors (a record number) convened to attend ARA’s 69th
Annual Convention and Exposition in October. There were many
familiar faces as long-time ARA members caught up with each other but
there were many new faces like Howard’s this year as well.
This was also the first time that Nick Elia and Ian Bell, from the UK,
attended an ARA convention and exposition.
“We attended the International Roundtable (IRT) in Liverpool as an
exhibitor,” said Bell. “This is our first ARA convention. We came to see
what’s going on in the industry in the U.S. and what we could take back
and use in the UK.
“We have gathered some inspiring ideas and I’ve really learned a lot
from the trade show – viewing the equipment and meeting the different
vendors,” said Elia. “If we start to use some of the systems used in the U.S.
B Y M I C H E L L E K E A D L E -TAY L O R
January-February 2013 | Automotive Recycling 29

Networking and Building Your Business
One of the most valuable things that most attendees
gain from an ARA annual event is valuable friendships
and a strong network of other auto recyclers. This
year was no exception as they all gathered to exchange
ideas, advice, and share in a bit of fun.
A recent addition to the networking events, the
Third Annual Golf Tournament was held on Tuesday,
October 23rd at the beautiful Celebration Golf Club.
Twenty-nine golfers hit the greens, with the longest
drive going to Garrett Morrison, and the first place
foursome going to Chuck Ossenkop, Dale Reed,
Doug Reinert, and Michael Wilson.
During the tournament, Logan Oil hosted a “Beat
the Pro Hole” and anyone who drove the ball closer
to the hole than their pro, the company’s CEO Chris
Knightly, won a sleeve of balls as well as a $25
donation to the ARA. Thanks to this event, $450 was
donated to ARA to further its important work.
A longstanding and popular event, the yard tour,
was hosted by GreenStar Auto Recyclers at their new,
impressive state-of-the-art facility in Orlando.
in a big way, such as an
Interchange, we could really
change our industry in the
UK.”
George, Roberto, and Roxana
Torres recently moved to Florida and are starting
a new yard, Central Florida Auto Yards. For them, the
convention proved a valuable source of information
and contacts to help them build their business.
“We’ve made good contacts already just walking
around the trade show,” said George. “We are really
finding it worthwhile to be here.”
Rick Wyen from Walt’s Auto, Springfield, Ohio, has
been attending the annual ARA convention for many
years. This year he brought his three sons who are
also involved in the business.
“We always find something exciting at the ARA
Convention and Exposition,” said Wyen. “We get so
excited about what we’re learning and new ways to do
things and we want to take them and implement
them in our business.”
Honorary Lifetime Member Greg Freeman, from
Missouri, said, “I don’t believe I’ve missed an annual
convention since 1977. When I go home and they ask
what I did while I was gone, I say I went to see family.”
The Future of Auto
Recycling Education
If there is one thing you
cannot say about the
ARA Educational Foundation,
it is that they are
lacking in ideas! The latest
one being tossed around by the
committee is an actual campus experience for auto recyclers
in training. During a visit to the Seminole Community
College and its Central Florida Auto Dealers Association
Professional Automotive Training Center, located just outside
Orlando, the idea was discussed by committee members
(seen touring the facility below) to hold an on-campus
weekend to teach, train, and certify auto recycler staff
members in this state-of-the-art facility on an annual or
even semi-annual basis.
The college is open to sharing the campus with the
ARAEF, and it is only a matter of time before owners will
have a place to send their staff for extended training, to
build upon what ARA University Online has begun.
30 Automotive Recycling | January-February 2013

Recyclers were treated to a barbecue, complete
with a fussball table, a D.J., popcorn, and hot dog
stands. Neil Harrow, GreenStar Auto Recyclers owner,
says he wanted to add some fun to the event and give
fellow recyclers a New York-style welcome.
“I brought my own hot dog and popcorn stand so
we could have a little taste of New York and do something
a little special for the guys,” said Harrow, a
former New Yorker. “I’m glad to have had the opportunity
to show the others our new facility and hope it
was a great time for everyone.”
Exposition Excellence
The 69th Annual Exposition kicked off with the
Past President’s Reception and a record number of
vendors this year – topping 100. Phoenix Automotive
Cores drew a lot of attention as they donned “gator
gear,” and featured a live baby gator to attract attendees
to their booth. Participants were thrilled to get a
chance to hold the alligator and receive a photo to
prove it.
Across the exhibition hall, Duesmann and Hensel
Recycling, based in West Berlin, New Jersey held their
very own Octoberfest, complete with imported German
beer and lederhosen. Clemens Hensel, one of the
owners, traveled from
Germany to attend the
expo. “We meet so
many of our customers
here that it is worth the
trip from Germany,”
said Hensel. “For me,
personally, I like to get
to know my customers
and this is a great way to
put a name to a face.”
Bob Henning, who
works from the company’s New
Jersey location agrees. “This is our
third ARA convention and expo
and it’s a great show. We make a lot
of contacts and have a lot of fun at the same time.”
Throughout the exposition, there were several fundraisers
to benefit ARA’s Educational Foundation. Some
of the activities included the “Bronco Gator,” an electronic
gator that only the most courageous dared to
ride. The ride, sponsored by Phoenix Automotive
Cores, attracted many brave opponents. The winners
were: Robert Buessing, the son of Past-President Mark
Buessing, who held on for 32
seconds to take the Bronze;
Peyton Wright, son of President
Chris Wright, received
Silver for lasting 35 seconds,
and Gold was awarded
to Cody Reinert, son of
Immediate Past-President Doug Reinert, who
stayed on for 51 seconds.
There were also fun photo booths stationed
throughout the exposition hall that
many enjoyed while donating to
the Educational Foundation.
The ARA Educational Foundation
will use the new funds raised, totaling
$40,000, to continue to provide
top-notch up-to-date training on
ARA University, as well as other educational
programs of value.
Progress By Committee
The Convention is a time when all are reminded
that ARA is a membership-driven organization. ARA
depends on the commitment and wealth of information
and ideas that its members bring to the table,
especially when it comes to the various committees
that help to shape the industry. These volunteers give
January-February 2013 | Automotive Recycling 31

their time to make a difference
to the industry as a whole.
The diverse committees
include Safety, Government
Affairs, Electronic Commerce,
Events Advisory, Technical Advisory, Gold Seal, CAR,
Airbag, as well as the Scholarship Foundation, and the
Educational Foundation. Others that met were Affiliate
Chapters, and the Regional and At-Large Directors.
On Wednesday, the first day of the convention,
each group discussed progress on various issues and
set goals for the upcoming year. The committee
chairs addressed the ARA membership at the Annual
Membership meeting on Thursday morning. Here
are some of the highlights:
To stress the importance of committee work,
President Randy Reitman encouraged the younger
generation to step up and get involved.
“ARA needs new faces to join the familiar ones,” he
said. “The newer generation needs to come up in this
industry. It’s you young-bloods that are going to make
the industry strong in the future. When we work
together, great things are accomplished.”
It appears that Andrew MacDonald (seen above presenting
his report to the ARA membership and with
his new committee), agrees. He recently joined the
family business as an co-owner of Maritime Auto Parts.
While he is the newest and youngest committee chair,
serving for the Technical Advisory Committee, don’t
let this fool you. Growing up, he witnessed his parents,
Ed and Lana MacDonald find success through service
to the industry, and he brings a wealth of experience
from his work as a Quality Control Engineering and
Project Manager, Purchasing, with Toyota. He has also
presented discussion papers to the Society of
Automotive Engineers on the auto recycling industry.
MacDonald reminded attendees about using the
Hybrid Vehicle Dismantling Guide as a resource in their
facility, and that it is still available for purchase through
ARA. The committee is also compiling statistics and
data from different regions on all stormwater activity
that occurs to better pinpoint what the local issues are
and how to help recyclers address them in their business
and with local legislators. Please report any local
stormwater regulation changes to the committee.
The Electronic Commerce Committee, then-chaired
by Greg Beagell, debuted the recently-developed ARA
Recycled Parts Guide online database. This electronic
expansion of the parts guide brings the huge paper
document of common descriptions online. According
to Beagell, it’s goal is to describe parts in a way that
people will understand and to continue the drive for
a unified way to describe parts across the industry.
This reference tool can assist a company develop its
online descriptions to increase its online sales activity.
The free database, hosted on the ARA website, will
assist inventory personnel, parts buyers, and insurance
estimators speak the same language when discussing a
part. The first audience it speaks to is our own, noted
Shannon Nordstrom, committee member. “We need
to use this internally so the correct standards and
descriptions are distributed uniformly.”
It illustrates to a buyer, like a body shop, what comes
with a part they need, and includes images and illustrations
where available. It details, says Beagell, “what
a buyer should expect from an auto recycler when
they are purchasing the part.”
32 Automotive Recycling | January-February 2013

The CAR Committee, chaired by Shannon Nordstrom,
reported that they added 48 new CAR members
since last year.
“The Certified Automotive Recyclers Program recognizes
automotive recyclers who meet the program’s
high standards in four areas: General Business,
Environmental, Safety, and Licensing,” he explained.
“We are proud to have 367 Certified Automotive
Recyclers currently in the program. They are a cornerstone
of our association as we strive to provide quality
service and parts. We need your support to continue
the standard of excellence in the industry.”
Doug Reinert, chair of the recently-formed Safety
Committee, said, “Our goal is to help businesses meet
OSHA requirements as well as to save money and protect
employees.” They have published five safety tips
thus far, and plan to produce them in Spanish, as well.
They will work with E-CAR and other committees to
complement their safety-related efforts.
If you have never served on a committee before
and would like to join
with your fellow recyclers
to make a difference
in this industry,
please contact the ARA
office to discuss the
opportunities available.
Insights to
Better Business
This year, there were
even more educational
seminars, 40 in all. They
covered a wide range of topics from how to maximize
use of industry specific tools, like Car-Part Pro , Bid-
Buddy, and the Interchange to name a few, making
used tires a cash crop, excellence in phone skills for
better customer service, to the latest trends in the
automotive technology, and how those changes will
affect the industry.
January-February 2013 | Automotive Recycling 33

Tom Morris, Ph.D. delivers a motivating
speech to rally the attendees.
Above: The panel of “Vehicle Technology:
How has it changed our industry?”
included Greg Horn,
Susanna Gotsch, and Rick Tuuri.
Right: Father and daughter presenters,
Sherri Heckenast and Frank
Heckenast, offered to-the-point information
on the small details that
cultivate success.
Industry leaders in collision repair,
e-mail marketing, international auto
recycling, I-CAR, hybrid vehicles, and more, as well as
speakers with insider knowledge of the industry created
a buzz in the halls as they delivered practical information
that were realistic and on-point.
Frank Heckenast and Sherri Heckenast, a father/
daughter duo in the u-pull-it business shared “Small
Details Lead to Big Profits” with a no-apologies style.
Both demanded more from attendees on making a
good impression on customers in every area of their
business, and how it leads to profits.
Vice President of East Coast Auto Salvage Taia
Cessana presented “The Cost of Bad Customer
Service.” She highlighted, to an attentive crowd, how
business is lost with every poorly handled phone call,
and shared how she even checks up on competing
and partnering yards to see how they treat customers
on the phone.
In his session, “Don’t Short Yourself on Vehicle
Purchasing” Rian Garner, of Counts Consulting, presented
practical tips on how to maximize your buying
by using the right person and other tips to enhance
your bottom line. He pushed attendees to look
beyond the obvious candidates to buy inventory.
“Think about it,” said Garner. “Some have natural
ability and others have to work harder to succeed.
That is especially true when it comes to purchasing
cars. Your buyer is the most important person in the
business.” He suggests looking to your best salesperson
in your business to help with purchasing, or even
your best inventory management person who might
also be trained to handle or help with purchasing.
Both know what sells and what doesn’t.
He encourages using your inventory management
system to examine all the data to determine what in
inventory really sells and to think about what each car
will cost them. He notes, “Just because a car is cheap
doesn’t mean it’s the best thing for your business.”
ARA Past President, Bill Tolpa, Tolpa’s Auto Parts of
New York, was an attendee. “We want to always stay on
top of the industry,” said Tolpa. “This has been a great
refresher course and there are always tidbits we can
pick up. There is always something that we can use.”
Dan Snyder of Snyder’s Certified Auto, in Holland,
Texas, enjoyed the session as well.
“Buying is one of the most important parts of our
business,” said Snyder. “Most of us owners, have a hard
time turning loose the checkbook to let someone else
do the buying. The tools available today need someone
who is patient, steady, and analytical as the perfect
buyer. Use the tools and information available and
teach the rules to someone who can buy for you.”
Keynote speaker Tom Morris, Ph.D., Chairman of
the Morris Institute of Human Values, presented
“True Success – The Art of Achievement in Times of
Change,” which proved to be a timely and relevant
message for the automotive recycling community.
“Everyone gets so comfortable with the success
they’ve recently had that no one wants to get of their
comfort zone and set new goals and go a little higher,”
said Morris. “It’s not the course ahead – everyone today
is yelling it is a tough course with the economy, but it’s
not about the course – but what you bring to the course.”
He taught on his plan for achievement, The 7 Cs of
Success, which he feels are necessary to secure it:
1. A clear CONCEPTION of what we want, a vivid
vision, a goal clearly imagined.
2. A strong CONFIDENCE that we can attain the
goal.
3. A focused CONCENTRATION on what it takes
to reach the goal.
4. A stubborn CONSISTENCY in pursuing our
vision.
34 Automotive Recycling | January-February 2013

5. An emotional COMMITMENT to
the importance of what we are
doing.
6. A good CHARACTER to guide us
and keep us on a proper course.
7. A CAPACITY TO ENJOY the
process along the way.
Donald Cooper, motivational speaker
(at right), also packed the room as he
shared practical and cut-to-the-chase ways to create an
extraordinary life and business. His pragmatic sessions
served to remind attendees that “life is a special occasion,”
and that they should try different experiences
every week. It was a refreshing perspective on why you
should be in business.
He also emphasized the need for a plan of action,
and suggested you start with the end result you want,
such as the money you want after taxes, and figure out
the math and goals that need to be met from that perspective.
He said, “People are searching for people to
be loyal to. Define yourself
by how you help them. Get
good at it and then brag
about it.”
Many other interesting seminars will be featured
topics in this year’s magazine, so stay tuned to get
educated and reminded of all the important information
that came from this spectacular, magical event.
And, we must tell you that next year’s convention
destination is Phoenix, Arizona, so mark your calendars
to head west with your fellow ARA members on
November 6-9, 2013!
January-February 2013 | Automotive Recycling 35

ARA GIVES
ARA GIVES
The 69th ARA Awards Dinner
had a reflective spirit to it this
year. It began with a solemn
moment as the ARA family
joined together for a moment
of silence in honor of URG’s Michelle
Alexander’s daughter, Jessica, who had passed
away at her college only days before the convention.
It was evident of the heartfelt concern that
ARA members expressed for Michelle and her
family.
Outgoing President Randy Reitman expressed
his gratitude to fellow ARA members for their
support and warm welcome that was extended
as he and ARA’s CEO Michael Wilson visited
their businesses and worked with them throughout
the past year.
Incoming President Chris Wright drew parallels
between the current state of the industry
and the time when his father, Ken Wright, was
ARA President (1988 to 1989), as well as other
eras of the industry. He gleaned this information
from reading over his father’s ARA meeting
notes and back issues of ARA’s magazine.
Wright is the third father/son duo to hold the
position of President of ARA.
The ARA Educational Foundation supplied
each table with party items, such as hats with
bright lights and whistles to put a little fun into
the night’s fundraising efforts. In Foundation
news, outgoing ARA Educational Foundation
President Sandy Blalock handed over the reigns
to Fran Reitman.
ARA CEO Michael Wilson reported that ARA
had another good year. “I would like to thank
Randy Reitman and fellow officers for all the
Randy Reitman,
with Michael Wilson
Chris Wright
President’s Award Recipient
Norm Wright, left.
work they have done over the last year to make
this organization stronger.
“We’ve had another very good year and added
125 new members,” said Wilson. “This year, we
expanded the ARA government affairs team
with the addition of Jessica Thomas and Delanne
Bernier. I feel that we have made some very
good progress in tackling the legislative issues
that face the industry.
“I encourage recyclers to build relationships
with their legislators, even though it takes time
to do so. Ricky Young has done just that over the
years with his local legislator. Now it’s at the
point that when a statute is under consideration
that would harm our industry, Ricky’s legislator
says, ‘I don’t do anything about cars unless I talk
to Ricky first.’”
Thanks to the efforts of the ARA North
Carolina members, Wilson reported that a proposed
change to an existing statute that would
have harmed our business was denied. “We have
some tough issues facing us, but it’s the combined
efforts of ARA staff, members, and associates
working together that will make the difference
and help us overcome these obstacles,” he said.
One of the staff who has worked very hard to
help make the industry stronger is Kelly Badillo,
ARA Membership Director. She received an
award for 20 years of service, dedication, and
support that she has given to ARA and to the
industry.
The end of the evening included awards,
accolades, and Educational Foundation Auction
with, among many great items, an awesome
4-week trip to Belize that brought in top dollar,
and was donated by Greg Lamb of Lamb Fuels.
36 Automotive Recycling | January-February 2013

RECOGNITION
Following, Reitman said in his parting words, “I can’t
believe that a year has gone by already. It’s a role I took on
with a little hesitation, but I’m glad I took it on. You’re my
family – I mean it, it’s the truth. People are so nice to us and
you opened up your homes and your businesses because you
wanted to help out. I am pleased to say that my goal of doubling
the CAR program during my term has almost been realized
– we added 48 new CAR members this year.”
Reitman then handed the gavel, and with it the role of ARA
President, over to Chris Wright, Capital Auto Parts, Thomasville,
Georgia. “I’m honored to be here as President of this
association,” said Wright. “I believe we have to look to our past
to see how to proceed in the future. The key is education –
then and now. The ARA University has done a phenomenal
job of educating our members and providing the information
we need to overcome these issues. However, we have to continue,
we can’t become complacent and just stop there. I
encourage you to get involved. Participate in ARA and you’ll
see the reward. I look forward to working with, I hope, a lot
of you this year.” ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
The Star Awards recognize four members each
year who have gone above and beyond in their
dedication to the Association and the Industry.
The recipients of these awards, mentioned below,
are selected by ARA members each year and
awarded to them at the annual Awards Dinner.
ARA AFFIlIATE ChAPTER OF ThE YEAR –
Automotive Recyclers of Michigan
CAR MEMBER OF ThE YEAR –
Morris Rose Auto, Kalamazoo, MI
REGIONAl DIRECTOR OF ThE YEAR –
George Sapir, Intercity Auto Wrecking Co.,
Bedford, Oh
MEMBER OF ThE YEAR –
Ian hill, hills Salvage and Recycling ltd., UK
lIFETIME hONORARY MEMBERS –
Greg Freeman & Jim Seamans
PRESIDENT’S AWARD – Norman Wright,
Stadium Auto Parts, Colorado
George Sapir, left.
Greg Freeman
Jim Seamans
January-February 2013 | Automotive Recycling 37

FOCUS ON THE ECONOMY
hanger
Fiscal Cliff
Congress enacts the American Taxpayer
Relief Act, finally providing relief to the
looming economic perfect storm.
O
iStockphoto.com/albiberon
n January 1, Congress preserved
most of the Bush-era tax cuts
and extended many other lapsed
tax provisions. The newly created
American Taxpayer Relief Act
permanently extends provisions
of the Economic Growth and Tax
Relief Reconciliation Act of 2001
(EGTRRA) and the Jobs and Growth
Tax Relief Reconciliation Act of 2003
(JGTRAA).
The act’s non-tax features include a one-year
extension of emergency unemployment insurance
and agricultural programs and yet another “doc fix”
postponement of automatic cuts in Medicare payments
to physicians. In addition, it delays, until
March, a broad range of automatic federal spending
cuts, known as sequestration, that otherwise would
have been implemented this month.
Among the tax items not addressed or extended
by the act was the temporary lower 4.2% rate for
employees’ portion of the Social Security payroll tax,
which has reverted to 6.2%.
Here are the act’s key provisions related to taxes:
Individual tax rates
• Individual marginal Bush-era tax rates are
retained (10%, 15%, 25%, 28%, 33%, and 35%).
• A new top rate of 39.6% is imposed on taxable
income over $400,000 for single filers, $425,000 for
head-of-household filers, and $450,000 for married
taxpayers filing jointly ($225,000 for each married
spouse filing separately).
• The personal exemptions and itemized deductions
phase-out is reinstated at a higher threshold of
$250,000 for single taxpayers, $275,000 for heads of
household, and $300,000 for married taxpayers
filing jointly.
Capital gains and dividends
• A 20% rate applies to capital gains and dividends
for individuals above the top income tax bracket
threshold.
• The 15% rate is retained for taxpayers in the
middle brackets.
• The zero rate is retained for taxpayers in the 10%
and 15% brackets.
Alternative minimum tax (AMT)
• The exemption amount for the AMT on individuals
is permanently indexed for inflation. For 2012,
the exemption amounts are $78,750 for married taxpayers
filing jointly and $50,600 for single filers.
• Relief from AMT for nonrefundable credits is
retained.
Estate and gift tax
• The estate and gift tax exclusion amount is
38 Automotive Recycling | January-February 2013

etained at $5 million indexed for inflation ($5.12
million in 2012), but the top tax rate increases from
35% to 40% effective Jan. 1, 2013. The estate tax
“portability” election, under which, if an election is
made, the surviving spouse’s exemption amount is
increased by the deceased spouse’s unused exemption
amount, was made permanent by the act.
Individual credits and provisions
• The American opportunity tax credit for qualified
tuition and other expenses of higher education was
extended through 2018.
• Other credits and items from the American
Recovery and Reinvestment Act of 2009 that were
extended for the same five-year period include
enhanced provisions of the child tax credit and the
earned income tax credit.
• The bill permanently extends a rule excluding
refunds from certain federal and federally assisted
programs from taxable income.
• The act also extended through 2013 a number of
temporary individual tax provisions, most of which
expired at the end of 2011:
> Deduction for certain expenses of elementary
and secondary school teachers
> Exclusion from gross income of discharge of
qualified principal residence indebtedness
> Parity for exclusion from income for employerprovided
mass transit and parking benefits
> Mortgage insurance premiums treated as qualified
residence interest
> Deduction of state and local general sales taxes
> Special rule for contributions of capital gain real
property made for conservation purposes
> Above-the-line deduction for qualified tuition
and related expenses
> Tax-free distributions from individual retirement
plans for charitable purposes
Permanent extensions
Various temporary tax provisions enacted as part
of EGTRRA were made permanent.
These include:
• Marriage penalty relief (i.e., the increased size of
the 15% rate bracket and increased standard
deduction for married taxpayers filing jointly);
• The liberalized child and dependent care credit
rules (allowing the credit to be calculated based
on up to $3,000 of expenses for one dependent
or up to $6,000 for more than one);
• The exclusion for National Health Services Corps
and Armed Forces Health Professions Scholarships;
• The exclusion for employer-provided educational
assistance;
• The enhanced rules for student loan deductions
introduced by EGTRRA;
• The higher contribution amount and other
EGTRRA changes to Coverdell education savings
accounts;
• The employer-provided child care credit;
• Special treatment of tax-exempt bonds for education
facilities;
• Repeal of the collapsible corporation rules;
• Special rates for accumulated earnings tax and
personal holding company tax; and
• Modified tax treatment for electing Alaska Native
Settlement Trusts.
Business tax extenders
The act extended and modified many business tax
credits and other provisions. A partial list as follows:
• The increased expensing amounts are extended
through 2013. The availability of an additional
50% first-year bonus depreciation was also extended
for one year by the act. It now generally
applies to property placed in service before Jan.
1, 2014 (Jan. 1, 2015, for certain property with
longer production periods).
• Extended through 2013 and modified the credit
for increasing research and development activities,
which expired at the end of 2011. The credit is
modified to allow partial inclusion in qualified
research expenses and gross receipts those of an
acquired trade or business or major portion of one.
• Indian employment tax credit.
• Employer wage credit for employees who are
active duty members of the uniformed services.
• Work opportunity tax credit.
• Qualified zone academy bonds.
• Fifteen-year straight-line cost recovery for qualified
leasehold improvements, qualified restaurant
buildings and improvements, and qualified retail
improvements.
• Accelerated depreciation for business property
on an Indian reservation.
• Enhanced charitable deduction for contributions
of food inventory.
• Modification of tax treatment of certain payments
to controlling exempt organizations.
• Temporary exclusion of 100% of gain on certain
small business stock.
• Basis adjustment to stock of S corporations making
charitable contributions of property.
• Reduction in S corporation recognition period
for built-in gains tax.
January-February 2013 | Automotive Recycling 39

FOCUS ON THE ECONOMY
Energy tax extenders
The act also extends through 2013, and in some
cases modifies, a number of energy credits and provisions
that expired at the end of 2011:
• Credit for energy-efficient existing homes.
• Credit for alternative fuel vehicle refueling property.
• Credit for two- or three-wheeled plug-in electric
vehicle.
• Cellulosic biofuel producer credit.
• Incentives for biodiesel and renewable diesel.
• Credits with respect to facilities producing energy
from certain renewable resources.
• Credit for energy-efficient new homes.
• Credit for energy-efficient appliances.
• Special allowance for cellulosic biofuel plant
property.
• Special rule for sales or dispositions to implement
Federal Energy.
• Alternative fuels excise tax credits.
Foreign provisions
• The IRS’s authority to apply a withholding tax to
gains on the disposition of U.S. real property interests
by partnerships, trusts, or estates that are passed
through to partners or beneficiaries that are foreign
persons is made permanent, and the amount is
increased to 20%.
New taxes
In addition to the various provisions discussed
above, some new taxes also took effect Jan. 1 as a
result of 2010’s health care reform legislation. The
new provisions include:
• Additional hospital insurance tax on high-income
taxpayers. The employee portion of the hospital
insurance tax part of FICA, normally 1.45% of covered
wages, is increased by 0.9% on wages that
exceed a threshold amount. The additional tax is
imposed on the combined wages of both the taxpayer
and the taxpayer’s spouse, in the case of a joint
return.
> The threshold amount is $250,000 in the case of
a joint return or surviving spouse, $125,000 in
the case of a married individual filing a separate
return, and $200,000 in any other case.
> For self-employed taxpayers, the same additional
hospital insurance tax applies to the hospital
insurance portion of SECA tax on self-employment
income in excess of the threshold amount.
> Medicare tax on investment income. Starting
Jan. 1, a tax equal to 3.8% of the lesser of the
individual’s net investment income for the year
or the amount the individual’s modified adjusted
gross income (AGI) exceeds a threshold amount.
> For estates and trusts, the tax equals 3.8% of the
lesser of undistributed net investment income or
AGI over the dollar amount at which the highest
trust and estate tax bracket begins.
> For married individuals filing a joint return and
surviving spouses, the threshold amount is
$250,000; for married taxpayers filing separately,
it is $125,000; and for other individuals it is
$200,000.
> Net investment income means investment
income reduced by deductions properly allocable
to that income. Investment income includes
income from interest, dividends, annuities, royalties,
and rents, and net gain from disposition of
property, other than such income derived in the
ordinary course of a trade or business. However,
income from a trade or business that is a passive
activity and from a trade or business of trading in
financial instruments or commodities is included
in investment income.
> Medical care itemized deduction threshold. The
threshold for the itemized deduction for unreimbursed
medical expenses has increased from
7.5% of AGI to 10% of AGI for regular income
tax purposes. This is effective for all individuals,
except, in the years 2013–2016, if either the taxpayer
or the taxpayer’s spouse has turned 65
before the end of the tax year, the increased
threshold does not apply and the threshold
remains at 7.5% of AGI.
> Flexible spending arrangement. Effective for
cafeteria plan years beginning after Dec. 31,
2012, the maximum amount of salary reduction
contributions that an employee may elect to
have made to a flexible spending arrangement
for any plan year is $2,500.
This information has been provided as a summary
of the provisions included in the American Taxpayer
Relief Act which has yet to be signed by the President.
Contact your accounting professional if you have
questions regarding this information and how it will
impact your specific situation. ■
This information was provided by the accounting firm of Markham Norton
Mosteller Wright & Company, with offices in Naples, Florida, and Fort
Myers, Florida. They can be reached at (239) 433-5554 or found online at
www.markham-norton.com.
IRS Circular 230: To the extent this message contains tax advice, the U.S.
Treasury Department requires us to inform you that any advice in this article
is not intended or written by our firm to be used, and cannot be used
by any taxpayer, for the purpose of avoiding any penalties that may be imposed
under the Internal Revenue Code. Advice from our firm relating to
Federal tax matters may not be used in promoting, marketing or recommending
any entity, investment plan or arrangement to any taxpayer.
40 Automotive Recycling | January-February 2013

A BIT OF HISTORY
Courtesy of Jerry Brock
From
There
To
A History of Transporting Cars to Auto Recyclers
as Remembered by Industry Founders.
A “
s I look back at everything I see the automotive
industry starting out just pulling
cars with chains, then we progressed
to picking them up and letting
them swing behind,” Max
Spalding, Spalding Auto Parts.
“Then we let them ride against
the back of the truck. As things
went along, we would put an
old tire between the truck
and the car. Then, came
tow-bars which held the
car back from the truck.
“As things progressed, we started fastening onto
the front tires which seldom causes any damage,
and that is where we are at today.”
Of course, Spalding is talking about the early
days of towing, an important aspect of auto recycling,
and at times a controversial topic in today’s
economic landscape.
Most likely, the earliest roots of transporting cars
to the auto recycler lay in the tow truck. In 1916,
Ernst Holmes built and patented the first twin
boom wrecker in Chattanooga, Tennessee. He
used a 1913 Cadillac touring car to build the first
tow truck and constructed it by cutting out the
back. He was inspired earlier that year when his
friend John Wiley’s Ford Model T (known as a Tin
Lizzie) ran off the road and landed upside down
in Chattanooga’s Chickamauga Creek. It reportedly
took Holmes and six other men eight hours to
retrieve it. They finally used three poles, a pulley,
and a chain hooked to the frame of a 1913
Cadillac. This inspired Holmes’ new creation,
built to avoid repeating that scenario in the future.
After patenting his invention, Holmes started
BY M I C H E L L E K E A D L E - TAY LO R
January-February 2013 | Automotive Recycling 41

A BIT OF HISTORY
Trucks used by Spalding
Auto Parts in the 1940s
and 1950s.
Courtesy of Max Spaulding, Spalding Auto Parts
manufacturing and selling wreckers and towing
equipment to automotive recyclers or anyone else
who wanted to tow wrecked cars. As the automotive
recycling industry grew, Holmes’s business expanded
to eventually become a worldwide, well-known
name synonymous with good quality, high performance
products.
For those auto recyclers that couldn’t afford to
buy a Holmes wrecker, a make-shift tow truck
made out of parts from cars they had in their own
yard had to suffice.
Over the years, the type of tow truck auto recyclers
used became more sophisticated and more
recyclers were able to purchase Holmes tow trucks.
Some recyclers could even purchase car carriers
that held up to four or five cars.
The earliest models of car carriers can also be
traced back to Ernst Holmes who produced perhaps
the first ever model of a car carrier in 1917 –
just one year after he patented his tow truck.
However, car carriers as we know them today
didn’t really take off until much later. In the early
days, they were more commonly used in the
equipment business, especially on farms to haul
farm equipment.
Chevron and Schwartz were also among the
early manufacturers of car carriers. Chevron built
their reputation on building carriers that could
hold up to three or four cars at a time.
Miller Industries, the world’s largest manufacturer
of towing and recovery units, eventually
acquired the Holmes company. Formed in 1990,
Miller Industries is a consolidation of leading
brands such as Holmes, Century, Challenger, and
Eagle. In later years, Vulcan, Chevron, and
Boniface Engineering were added in the Europe.
They operate four plants in the U.S., one in the
UK and one in France.
With main headquarters in Ooltewah, Tennessee,
Miller Industries manufactures light, medium,
and heavy duty towing and recovery units with up
to 75 ton rotators. They played an important part
in shaping the development of the way cars are
transported to the recycler with their car carriers.
“Most of the changes in the car carrier industry
came with the change in chassis and in the Gross
Vehicle Weight (GVW),” said Randy Olson, Vice
President of Marketing for Miller Industries. “As
the GVWs and chassis increased along with bigger
tires and bigger brakes, carriers could haul more
weight. In the 1980s tow trucks had a 10,000 lb.
payload, which meant by the time you considered
the weight of the tow truck itself and the bed on
top of it, its payload was already almost used up.
With the changes, the payload increased and
more cars could be carried. Today, although we
have trucks that go up to GVW’s of 80.000 lbs., the
most common GVW is 25,000 lbs.”
42 Automotive Recycling | January-February 2013

This evolution in technology and the establishment
of auto auctions spurred a change in the way
recyclers purchased cars and in turn, their need
for different equipment to transport the cars back
to their yards. Instead of transporting a single car
from less than 100 miles away, auto recyclers needed
to transport multiple cars from the auctions at
the same time. Today, most auto recyclers contract
haulers to bring cars purchased at auctions back to
their businesses.
A Peek into the Future
In carrier design, one of the latest developments
from Miller Industries’ large dedicated engineering
team is the Low Center of Gravity carrier. This
patented design lowers the deck height by six to
nine inches from that of a conventional carrier.
This lowers the load angle, provides better stability
when transporting, and provides ease for the operator
to secure the load from the ground.
“We are in the process of working on a multi-car
carrier that will be easier to work with than the
over-the-cab rack that is traditionally used in auto
salvage,” said Olson. “The advantage for the auto
recycler is that the new carrier will be quicker and
easier to load as well as safer to operate.”
Snapshots from the Past
There are many ARA members who have grown
up in the business and experienced the various
methods of transporting cars back to their yards
over the years. Jerry Brock, Max Spalding, and
John C. Vander Haag are among those industry
veterans who have witnessed the evolution of
transportation in the auto recycling industry. They
share some of their experiences and memories.
Jerry Brock
The tow truck holds
a special place in the
heart of Jerry Brock,
Chairman of the Brock
Supply Company, in
Tempe, Arizona. In
fact, he believes he owes a large part of the success
of his business to it.
Brock grew up in the salvage business and
remembers his dad using a Model A Ford tow
truck that featured a hand crank wench. In 1969,
he opened his own salvage yard, Brock’s Auto
Parts, and had a 1958 Chevy Holmes wrecker. He
used this tow truck to do a lot of police towing for
the Tempe police department, Maricopa County
Sheriff’s office and the Arizona Highway Patrol.
“This police towing really helped me to get my
business going,” said Brock. “If a car was wrecked,
I had a better chance of buying the car if I towed
it. This was important because back then we didn’t
have auctions like we do today to buy your salvage.
We had to buy our cars sometimes 100 miles away
and tow it back to our facility. “
In the 1960s Brock used the tow truck to haul
cars and offered 24 hour towing. It was not uncommon
for him to wake up his wife and five-year old
daughter at two o’clock in the morning to answer
a police call to tow a vehicle from an accident.
“I was a young man and was really thrilled to do
the police towing,” said Brock. “I would do it day or
night. I found it exciting. At the time, there were
no EMT’s, so I would arrive at the same time as the
police and ambulance or even before the ambulance
and try to help them free someone who was
pinned in the vehicle.”
In 1966, using his auto salvage experience, Brock
implemented a telephone communications network
known as the “Hot Line.” It consisted of
Brock’s own company and several other auto parts
businesses as members of the line. Eventually, this
membership grew to include 150 members.
Soon after, Brock expanded his business to
include selling supplies to members, sending flyers
and eventually catalogs to the automotive industry
throughout the U.S., Canada, and internationally.
This became an integral part of the business.
“In the late sixties, we started selling markers to
mark cars and saws to cut cars, and by the early seventies,
we had moved more into aftermarket parts,”
said Brock. “As much as I enjoyed towing, I
decided to focus on expanding our growing business
instead. We sold
the salvage part of our
business in 1980 and
became the Wholesale
Automotive Aftermarket
Parts Company.”
Now, Brock Supply
Company operates in four locations; their administrative
office in Tempe, Arizona, with distribution
centers in Texas, and Virginia, and a purchasing
office in China.
Although many years have passed since Brock
used the tow truck to bring in extra revenue and
salvage, he still has fond memories of that time.
“I really enjoyed using our wreckers in our busi-
January-February 2013 | Automotive Recycling 43

A BIT OF HISTORY
We had to tow one car at a time back to our facility. Some of the larger
companies had car carriers that could hold up to five cars.
ness. We had to tow one car at a time back to our
facility,” said Brock. “Some of the larger companies
had car carriers that could hold up to five cars.”
Several years ago, Brock restored a 1958 Chevy
Holmes 525 wrecker (above) just like his original
one. (You can read more about that in the
July/August 2010 issue of Automotive Recycling magazine).
Every now and then, he takes trips down
memory lane when he takes part in car shows and
local parades.
Max Spalding
In 1934, when Spalding Auto Parts was established,
its founder Dolph Spalding, used a car and
big chains to pull a car to the store. It didn’t take
long before Dolph realized he needed to come up
with a better way to transport the vehicles he purchased.
Soon, he decided to create his own version
of a wrecker. He took a Studebaker sedan body and
a frame and married them with the motor and rear
end of a Model A truck.
He accomplished this by making one cut to the
Studebaker body behind the front door and another
behind the rear door. Then he put the front and
rear back on the Model A, making a wrecker body
from miscellaneous pieces from the scrap yard.
This wrecker had a power winch which was
extremely modern in those days (top row, left).
Dolph used this one for his business for several
years. Then, in 1938, he purchased a new truck
that had been burned. He used that to build
another wrecker, and later, Dolph and his team
used those parts on a 1941 truck and used that tow
truck for 25 years (second row).
Dolph’s son Max grew up in his dad’s business
and eventually took over what has now grown to be
a thriving auto salvage business operating on 50
acres in Spokane, Washington.
He remembers their first Kenworth wrecker.
“In the late forties and early fifties, my Dad decided
to put together a large Kenworth wrecker. We
started recovering wrecked trucks and towing for
hire which greatly enhanced our opportunities to
purchase the wrecked truck,” says Spalding.
“From there, we evolved with our business and
in 1961 we constructed a bed that we used on several
different trucks throughout the years (top
row, right). In 1975, we started using our first
Chevy one ton.
Spalding Auto Parts then used a 1975 Ford slide
back truck with a T.I.C. body on it and acquired its
first three T.I.C. car hauler, their first multi-car
hauler that featured fully hydraulic loading.
“All of these trucks would use some type of a
sling on the rear car, which caused damage to the
car being towed,” said Spalding. “Today we use a
newer version of these trucks with aluminum beds
and damage-free hitches that are produced by
Chevron, which bought out T.I.C. in the late seventies.
That’s about the same time we became a
Chevron dealer.”
Today Spalding Auto Parts not only sells Chevron
trucks, but also uses them to transport its vehicles.
Unlike, many other recyclers, they normally do
their own hauling using the new Chevron car
hauler – not surprising with their heritage. Today,
they also operate two self-service auto salvage yards
along with their full-service yard.
According to Spalding they sometimes hire a
contractor to haul cars if they’ve been purchased
200-300 miles away. The contractor they hire just
happens to be a customer that they sold a four-car
hauler to years ago!
44 Automotive Recycling | January-February 2013

John C. Vander Haag
John C. Vander Haag, Jr. grew up in the auto
recycling business – his father John C. Vander
Haag, Sr. began in the business with South Side
Junkyard in 1939 in Sanborn, Iowa. It was primarily
a scrap and metal business to support the war
effort. In the late 1940s, the business changed from
collecting scrap iron and metals to purchasing
older and wrecked cars. They marked their transition
into the auto parts business with a new name,
Southside Salvage. The business grew into a reputable
yard, and in 1969 became Vander Haag’s,
Inc., moving to its current location, Spencer, Iowa.
In 1955, John C. Vander Haag,
Jr. returned from military service
in Korea and took over the family
business. He started purchasing
late model wrecked and burnt
cars. It was during this time that
Vander Haag’s played their part in
the history of how auto recyclers
transport vehicles today.
He states he was the first one to
ever use a tilt bed truck in the auto
recycling industry and this move
completely changed how they did
business. He bought cars equipped
with automatic transmissions, such as
Chevrolets with Powerglides, Buicks with Dynaflow
and Nashes with Hydra-Matics. “All of these cars
had torque tube drives that could not remove from
the drive shaft for towing. “We ruined our transmissions
towing them in,” Vander Haag, Jr. said.
We noticed that Caswell Manufacturing had a tilt
bed truck box with a winch for implement dealers
to haul tricycle-type farm tractors for repair and
then return to the farmers. We saw this and knew
it was the solution for hauling cars with automatic
transmissions.”
They purchased a used 1956 Chevrolet Low Cab
Forward truck and had Caswell install an 18’ bed
on it for $1,800.
“This was the answer to our problem,” he states.
“From then on we hauled most of our vehicles on
this truck. We feel we were the owner of the first tilt
bed in the world for hauling wrecked cars and
trucks. Now there are millions of them and we have
owned a number of tilt beds since.”
Over the years, Vander Haag’s Inc. favored buying
trucks and decided to end their car parts business
in the 1990s. Today, they handle only trucks
and have become a recognized leader nationwide
in the used truck sales, parts, and service,
and equipment industry.
“As we started to buy more trucks we
switched over to tractor/trailers for
hauling and, in 1976, bought a new 40’
Landoll with sliding axles to put the
wheels to the rear so we could load
our flattened car bodies on the same
trailer,” said Vander Haag, Jr. “Landoll
was one of the first to manufacture
sliding axles on lowboy trailers. We had a flip deck
installed up front so we could haul three vehicles.
Again, we were one of the first to buy and haul
trucks for parts in our area, including class eight
diesel trucks.
“Our first wreckers were homemade from parts
we had on hand,” he remembers. “We used a
three-speed transmission with a drive shaft to run
the cable on and made the crank to attach to a
clutch plate spline that slipped over the main drive
gear. Some frame rails were used to make the
boom. I bought a factory-made Weaver wrecker in
the 1950s with a hand crank and installed it on a
one-ton Dodge.”
In 1956, Vander Haag built wreckers on a 1950
Chevrolet two ton truck. “It was my best, my first
with a power winch, until the tilt bed came along.”
In 2011, Vander Haag completed reconstruction
of an original 1956 Chevrolet LCF (above). He
used a rust free 1956 Chevrolet LCF truck, with
only 28,000 miles, and a used Caswell 18’ box like
their original. “The restoration was done by
employee Mich Langfitt and it looks sharper than
when it was originally new.” ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
January-February 2013 | Automotive Recycling 45

Q&A: A BIT OF HISTORY
THE BEGINNINGS OF AUTO RECYCLING
A LOOK BACK WITH JOHN C. VANDER HAAG, JR.
BY M I C H E L L E K E A D L E - TAY LO R
Automotive Recycling magazine (ARM):
How did salvage yards come about?
John Vander Haag, Jr.: In the late
1900s to 1920s, junk cars were traded
in, given away, or parked out of the way
as they didn’t have much value. In my
town, the Ford garage burned down
and all the cars were put into the city
dump, in rows and covered with ashes.
When World War II (WWII) started, the
cars were dug up for their scrap value.
Each town had scrap drives for the war
effort and many old cars were brought
in from the farmers’ groves where they
had been left to sit. Auto junk yards
were just starting, mostly for scrap for
the war effort and then for parts.
ARM: What kind of cars did recyclers
purchase?
John: In the late 1930s, we were buying
Model A Fords for $10 and Model
T Fords for anywhere between $5 and
$10 per car. We would remove the battery
for lead and the radiators for copper.
Lincoln and Cadillac Models
manufactured from 1928 to 1932 were
especially sought after due to their scrap
value. We paid between $25 and $30
each for these cars. We used the aluminum
from the bodies of the cars and
also the aluminum that was in the new
engine block for scrap.
ARM: How was it to be in business
during the war years?
John: Young men were going into the
service. Big cars were gas guzzlers, gas
was rationed, and there was a 35 mile
per hour speed limit. Farmers had only
cars, as there were no pickups before
and during the war years. Pickups came
after the war. People were riding the
trains or buses instead of driving their
cars. There were no new cars during the
war years of 1942 through 1945.
When WWII started in 1941, it
became hard for the auto recycler to
stock pile cars for parts as the government
came in with regulations that
required all salvage yards to scrap everything
to support the war effort. Tires
were also being rationed so you had to
go to the rationing board for a permit
to replace a tire.
ARM: It was during this time that
National Auto Truck Wreckers Association
(NATWA; now known as ARA) was
formed. How did this come about?
John: In 1943, a group of auto wreckers
formed the National Auto Truck
Wreckers Association to tackle some of
the legislative issues that were facing the
new industry. The group visited
Washington, D.C., and negotiated a
deal with the government to scrap the
same amount of steel as they purchased
and to hold an equal tonnage for parts.
During the war, the Bureau of Mines
made everyone fill out a report each
month telling the tonnage shipped out
and taken in. By the way, steel was
bringing $12 per ton, and cast was $20
per ton. Labor was cheap so engines
were dismantled for the cast, copper,
aluminum, and babbitt.
Another thing that NATWA did during
that time was to provide members
with a glossy magazine with ads for
hard- to-find parts. This began our networking
with other recyclers to provide
parts that our customers needed. It
greatly enhanced our customer service.
From these ads, I was buying aluminum
fenders from Pioneer Auto Wrecking in
Denver, Colorado, running boards from
Glassman Auto in Akron, Ohio, grills
from Victory Auto and hard parts from
Warshawsky Auto Parts, both in
Chicago. I made my orders in the
evening by Telegram because it was
much cheaper than using the phone.
The parts were then shipped to me via
the Railroad Express.
ARM: How did the industry change
after WWII?
John: During the war, cars were burnt,
bodies of cars were cut into smaller
pieces with an ax, parts were then
mashed with a roller and shipped to
steel processors by railroad. After the
war, car frames and axles were cut up
into 18’ x 60” pieces with a torch as they
brought more money, $18-20 per ton.
When new cars became available for the
public to purchase after the war, the old
cars from the 1920s and 30s started
coming in. The parts business did not
pick up much because of the flood of
new cars to the market.
In the 1950s people started insuring
their cars. As there were no insurance
adjusters as we know them today, the
insurance companies hired attorneys in
the area to settle claims. Then, the larger
insurance companies started to hire
their own adjusters to settle claims.
They took bids on the salvage, taking
the highest bid. The salvage business
really started to grow during this time. I
was buying most of my late-model cars
(from 1946 on) from attorneys at that
time and able to get better quality parts.
As the industry progressed, car pools
were created where damaged cars were
collected for auto recyclers to bid on.
Auto recyclers went to the pool location
where they were given a list with all the
cars for sale with a number next to the
car. The recyclers placed bids on the
cars they wanted by writing a number
next to the car on the sheet. They had
to wait one or two weeks before they
knew if they got the car or not.
The pools added an auction held at
the location to eliminate the wait time
to receive the vehicle you bid on, and
expanded the selection of parts available
to the auto recycler.
Today, auto recyclers can bid on cars
from several different auctions at the
same time over the Internet. It isn’t just
a local parts business anymore, making
it much more competitive today. However,
with the increasing competition,
the auto recycling industry has evolved
to become a more efficient and environmentally-friendly
business that is set
to face the future.■
Michelle Keadle-Taylor is a freelance writer based in Northern
Virginia.
Do you have a story to share? E-mail
ARAEditor@comcast.net; we will publish it
in a future installment A Bit of History.
46 Automotive Recycling | January-February 2013

BOOSTING E-MAIL BLASTS
Clicks
Plan For
How to Leverage E-mail and Social Media to Engage Your Audiences.
iStockphoto.com/Eric Scafetta
I
E-mail marketing and social media marketing are
great ways to keep in touch, engage customers and
prospects, and build relationships. E-mail marketing
is a really easy starting place, and remains the best way
to get your message heard. Within minutes, you can
put together a message that will motivate your customers.
Then, social media can help get your message
to spread. You can expand the reach of your e-mail
campaign beyond the inbox by simply sharing a link
to the campaign in your different social media sites.
Additionally, adding a “Like” and “Tweet” buttons in
the body of your e-mail will make it easy for your e-
mail subscribers to share your message with their
friends.
When you combine e-mail and social media efforts,
you present a stronger message, one that’s more
engaging and more visible. E-mail and social media,
when used effectively, can make the difference
between a business whose messages blend into the
others, and one where people actively look forward
to receiving and interacting with them.
BY PA M E L A S TA R R , A R E A D I R E C TO R , C O N S TA N T C O N TA C T
n today’s highly-connected world, effective marketing is no longer
about simply broadcasting your message and waiting for the phone
to ring. Talking at your customers doesn’t fly. The way businesses
connect and communicate with their customers and prospects has
changed. Consumers want more – they want to engage.
The key to doing this successfully is to create
content that is both engaging and valuable to your
audience. When you’re thinking about content to
put in your newsletters and e-mails, or to share on
social media, it’s easy to get caught up in talking
about your company. While your audience subscribes
to stay current on your business, they’re more likely
to tune in when the conversation is focused on how
your business can help them.
Shifting your focus to their interests and needs is
the biggest differentiator between simply distributing
information and fully engaging your audience. When
you’re able to engage readers, you’ll see repeat sales
as well as a boost to your readership thanks to your
loyal followers passing it along to their colleagues and
friends.
This doesn’t mean you need to ditch your current
approach to e-mail or social media marketing, especially
if it’s been effective. Rather, it’s about focusing
the conversation toward the “what’s in it for me”
from the reader’s perspective.
January-February 2013 | Automotive Recycling 47

BOOSTING E-MAIL BLASTS
How to create content that’s worth sharing
It is great to communicate to your current customers
and prospects. It is even better if they share
your e-mails or social media posts with their friends!
When they do that, they are giving you free advertising.
What can you write about that is share-worthy?
Think about Q&As, insider tips, and interviews with
experts. So where can you go for inspiration? Here
are some easy and effective ideas to consider:
1. Follow the news: Track the headlines, top stories
and trends and then consider how it affects your
audience. From there, develop your content from a
more personal and/or local point of view. Just be
sure to steer clear of controversial or polarizing
topics.
2. Look to others in your industry: One of the best
ways to find inspiration is to look at what others in
your industry are talking about. Can you offer a different
viewpoint or advice on a topic? You may also
want to interview other experts in your industry.
Chance are they would be delighted if you ask.
3. Create a Q&A column: If you’re getting asked
the same or similar questions from customers, you
can bet that other customers also have the same questions
in mind. Start a Q&A column with questions
people ask. These add personality to your business
and can also lead to online discussions where your
customers weigh in on the topic and provide additional
advice.
4. Interview one of your customers: Ask one of
your own customers if they want to be featured in
one of your posts. This could be a loyal customer or
even a new customer. Write about their business challenges
and how they’ve overcome them. Customer
stories are an engaging way to create more visibility
for both your business and theirs. Ask them to share
the story with their own network as well.
5. Ask your employees for topic ideas: Create a simple
system to gather topic ideas from those who know
your business best ... your own employees. You could
even make this fun and create a contest for others to
vote on a few of the ideas. Engage your employees
while creating great content ideas.
6. Share Stats: People gravitate toward stats and
data when it’s relevant to their interests. Keep up on
what’s happening in your industry and pass along the
stats that are interesting, quirky and amusing yet still
related to your business.
7. Create a survey: Ask customers to participate in
a short survey or poll. The answers will likely provide
lots of good fodder for future newsletters and can
also spark conversations in social media. Not to mention
the added benefit of getting to know more about
your customers so you can further engage them.
8. Offer Tips & Tricks: Offer quick tips or shortcuts
on anything related to your business that will help
your readers improve some aspect of their life. When
you freely share your insight, you’re able to more
actively engage your readers while subtly showcasing
your expertise.
9. Make your predictions: Crystal ball gazing is
always a magnet for readers and it’s not as difficult at
you may think. Given that you know enough about
your industry, your customers and their past buying
behaviors, as well as what’s happening in the news,
you can put forth your own set of fun predictions.
While you’re at it, ask customers to chime in on their
views of the future. This way, you’ll be able to
generate discussions, get more content ideas, and
gain more insight into your customers’ interests.
10. Go Social!:
Facebook: Search Facebook for groups or Pages relevant
to your business. “Like” these Pages or join
these groups. You’ll begin to see their posts in your
newsfeed. If you see something interesting, hit the
“Share” button below the post, add your own commentary,
and then share it on your own Facebook
business Page!
LinkedIn: Similar to Facebook, you can join various
groups on LinkedIn and watch the various conversations
going on. You may see someone there you want
to connect with and interview, find an interesting article
you want to link to, and/or get ideas from questions
people are asking.
Twitter: Twitter is also a great place to get ideas.
People use Twitter for linking to quick content, articles,
and news. Follow those in your industry and
watch what they post for ideas. You can even search
for people asking questions related to your business.
Let those questions fuel the content you create.
One final tip: No matter where you are gathering
content or where you are sharing it, always remember
to include a direct call to action, a.k.a. an “engagement
driver.” The driver is the content that hooks
your readers and includes clear directions about the
next steps you want them to take. In many instances,
your readers may be nodding their head in agreement
with your content. To transform this passive experience
into an engaging one that seizes their interest
and enthusiasm, insert options such as comment, forward,
“Like,” and Tweet. This way, they can further
spread the word and entice others to engage with
you. ■
For more information on Constant Contact e-mail campaigns, visit www.
constantcontact.com or call Customer Support at (866) 289-2101.
48 Automotive Recycling | January-February 2013

BOOSTING SOCAL MEDIA
Inbox
View From Your
A
uto recycling businesses looking to maximize social media,
but feel overwhelmed by the idea, have no fear. Doing so is
as easy as integrating it into existing e-mail marketing programs.
I think I just heard a collective sigh of relief, so sit back and
take note of these easy-to-implement ideas to add power to
your promotions.
iStockphoto.com/Eric Scafetta
Boosting your social
media profile can
be easily done with
a few ideas that fuse
e-mail with your
social connection.
BY C A RY N S M I T H
A N D J O E DYS A R T
View from the Social Inbox – a study released in 2010 by Merkle, which is a large
customer relationship marketing agency (www.merkleinc.com) – revealed an
interesting statistic, uncovering good news for auto recyclers already accustomed
to utilizing e-mail-driven promotional campaigns.
The study found that active social networkers are also likely to be avid e-mail
users. All told, the study found 42% of social networkers check their e-mail four
or more times a day, as compared to just 27% of those who don’t socialize
online.
Merkle’s Director of Research and Analytics, Lori Connolly, said, “There is no
doubt that social media sites, such as Facebook, YouTube, and Twitter have
grown in popularity across demographics. Yet, we are seeing consistent social
use of the e-mail channel, as well as evidence to support the idea that social networking
and e-mail use are actually more related than previously thought.”
In the eBook, The Ultimate Guide to E-mail Marketing, Kevin Gao, software developer
and CEO of Comm100 (www.comm100.com), an enterprise-level customer
service and communication solutions company, makes similar observations.
Gao suggests, “Does it make sense for you to allocate all of your marketing
resources to social media? No! E-mail marketing is still a very important part of
any complete web marketing strategy. Of course, in the socially-networked
world, you’ll need to combine your e-mail marketing and social media marketing
strategies together to meet different goals.”
January-February 2013 | Automotive Recycling 49

BOOSTING SOCAL MEDIA
The Case to Preserve E-mail
Gao’s insightful ebook also makes
the following points:
• E-mail marketing still provides the
highest return on investment: This
makes sense when you think about how
little overhead or time it can take to
send an extremely targeted e-mail to a
very specific group of customers.
• Consumers and users do not switch
e-mail addresses – but they do migrate
social media: Do you remember
MySpace? What? You don’t? ... Point
made. If there is one thing that seems
to be true of social media, it is that
users will eventually migrate to another
social network. That, however, is not
true of e-mail addresses. Certainly, people
sometimes change their e-mail
address. But more frequently they simply
add a secondary e-mail address and
use their older e-mail address less often
or for different purposes.
• Messages do not disappear from
inboxes: Once you send an e-mail marketing
message to a customer, that
message remains in that individual’s e-
mail inbox until the individual either
reads it or actively chooses to delete it.
Even if the user hasn’t read the e-mail,
your e-mail subject line is still there in
the inbox reminding the user of their
relationship with your brand.
• E-mail marketing is targeted while
social media is “One Size Fits All:”
Your marketing database contains information
that allows you to segment and
target communications based on facts,
such as purchasing history, gender, age,
and even geographic location. Social
media and social networks do not allow
you to target messages effectively.
• Social Media is a brand engagement
tool, not a direct sales tool: A
great part of the reason that e-mail
marketing continues to deliver the
highest return on investment of all
marketing channels is that how users
behave on social media networks does
not translate into direct sales. While
social media users gather information
and discuss products, they don’t necessarily
buy products. Social media is very
THE 5 PROVEN E-MAIL PRACTICES TO DRIVE REVENUE
In an ExactTarget 2012 report, 66% of consumers say they’ve made a purchase as a result of receiving
an e-mail and 77% of consumers surveyed prefer to receive permission-based marketing
communications via e-mail than any other channel. Despite the growth of mobile and social channels,
e-mail is the channel consumers choose when it comes to driving revenue and ongoing engagement
with companies. Here are some of ExactTarget’s tips for e-mail success:
1) Gain Subscribers: Consider your Web site, printed receipts, on-location signage, the online
purchase process, events, or tradeshows to capture e-mail addresses; test different opt-in techniques;
choose several opt-in methods and track them to determine your most successful source of
new subscribers; and, get social – if your subscriber list has hit a plateau, you may be overlooking a
captive audience, your Facebook fans! A simple sign-up form will drive e-mail opt-ins.
2) Improve deliverability: Maintain a consistent “From” name; and, double check your subject
line to avoid spam filters by excluding the following characters and terms: RE:, FW:, Hello, Free,
Special Offer, text in ALL CAPS, and exclamation points!!!
3) Design for clicks: Design for mobile – ExactTarget surveys show that more than half of consumers
(53%) use a smartphone to check e-mail at least several times per day; and, put your most
important information in the upper left quadrant – research proves that the human eye scans e-mail
in an “F” pattern.
4) Drive engagement: A recent study by eMarketer revealed that 56% of U.S. e-mail users unsubscribe
to a business e-mail list because the content was no longer relevant. Use all the data you
know about your subscribers—gender, job title, hobbies, and interests, purchase history, browsing
history, social media presence, etc. to create interesting e-mails.
5) Use automation: Automate a welcome program (easily accomplished with most e-mail marketing
tools, like Mail Chimp or Constant Contact); capitalize on cross-sell and up-sell opportunities
and include offers on related products or services when you send e-mail receipts or online transaction
confirmations. E-mails like this are easily automated and allow you to maximize your customer
data to boost revenue opportunities.
— Excepts from www.ExactTarget.com. Want more tips and tricks from ExactTarget?
Visit www.ExactTarget.com/Resources for other helpful downloads.
important for your brand engagement.
It is not, however, typically a direct sales
channel like e-mail marketing is.
• E-mail marketing and social media
need to work together: Any good marketing
plan is comprehensive. That
means that, yes, your e-mail marketing
and social media platform should work
together. There should be opportunities
for users to share e-mail content via
social media networks and opportunities
for users to join your e-mail marketing
list via social media.
Merging Media: High End
Besides doing simple cross promotions,
you can also invest in some new
tools to get even more mileage out of
your e-mail list. For the serious-aboutsocial-marketing
businesses, premium
products are an investment in the
Download Kevin Gao’s book,
The Ultimate Guide to
E-mail Marketing at
http://emailmarketing.comm100.
com/email-marketing-ebook/.
future, and can yield significant results
if used properly. These products are
not for every auto recycling business, as
the average yearly contract cost can
reach around $60,000.
One service, StrongMail® Social
Studio (www.strongmail.com), for
example, enables you to filter your e-
mail list for people who are known in
social media as “top influencers” – or
people who have a lot of active friends
online.
The program identifies top social
influencers by loading your e-mail
address list into the software, and
searches the Web for ones that are
associated with heavy social media
activity. This allows you to use this data
to e-mail and offer these top influencers
rewards and/or other offers in
exchange for promoting your business
to their friends, i.e., to alert them
about your specials, discounts, and promotions.
“The real value of social
media marketing is to move beyond
merely listening, to start driving actual
revenue,” says Paul Bates, UK managing
director at StrongMail.
You’ll find there are other programs
50 Automotive Recycling | January-February 2013

similar to Social Studio that offer businesses
virtual dashboards they can use
to create, manage, and monitor offers
to top influencers across a number of
digital mediums, including e-mail,
social, mobile, and Web.
ExactTarget’s Interactive Marketing
Hub (www.exacttarget.com), for example,
includes a CoTweet Social module,
which enables businesses to manage
their interactions with top influencers
and others on multiple Twitter and
Facebook accounts, and includes a
number of analytics tools and reports.
Another module within the package,
Sites, enables you, or your Web designer,
to create, design and deploy Web
pages that are embedded with links to
your presence on Facebook, Twitter
and similar social networks.
Still another program with similar
capabilities is the Responsys Interact
Suite, from Responsys (www.responsys.
com/suite/index.php).
Merging Media: DIY
As the fusion between social media
and e-mail marketing gels at your business,
here are some tactics to consider
when combining the two.
• The easiest way, and one you most
likely already do, is to begin fusing your
social media efforts with your e-mail
marketing to ensure that each effort
includes an element of the other. This
simply means always embedding your
company’s e-mail address in any activity
you engage in on Facebook, Twitter
and other social networks, and having
all your social media links in any e-mail
you send.
• Use social media to alert customers
to e-mail activity, such as special promotions,
announcements, and events.
• Use social media to drive opt-in on
your e-mail list. For Facebook, for
example, provide a post to both “like”
your page and to register to be a part
of your e-mail marketing database.
Mention a “Welcome” offer or coupon
that they will receive to join the list.
On Twitter, tease about a pending e-
mail campaign they won’t want to miss,
with a link for the sign-up form.
Also, embedding share-to-social links
in your e-mails (add-ons that are found
in most e-mail marketing tools, like
Constant Contact, etc.) to drive content
sharing across channels. This
instantly offers clickable access to
dozens of your social networking sites.
• Maximize testimonials. Customer
accolades look good on a company
Web site, but for some, they look even
better on your Facebook page.
You can solicit testimonials by e-mailing
new customers shortly after a visit,
and inviting them to submit a review.
Initially, post glowing responses on
your Web site, and then – with permission
– on Facebook, Twitter, and other
social media networks as well.
For even more mileage, ask your customer
to repost the submitted testimonial
to his/her own Twitter, Facebook
and similar feeds, and offer a small
reward or compensation as incentive.
Do the same for any spontaneous testimonials
from your customers that
pop-up on Facebook and Twitter, with
permission from the author, of course.
• Be Liked. The Like button on
Facebook is a coveted click in the marketing
world. When someone likes
your business on Facebook, your product
or service becomes quantifiably
more important, and more desirable.
• Hold contests. The immediacy of
social networks perfectly lends itself to
time-sensitive contests. Hold an answerthe-question
contest once a week,
rewarding the first person with the
right answer with a valuable prize or
free service. And, of course, use e-mail
to stoke interest, and report on the
contest winners.
• Go where your customers hang out.
If they don’t tweet, invest your time
elsewhere. ■
Caryn Smith is the editor of Automotive Recycling magazine.
Joe Dysart is a freelance writer.
January-February 2013 | Automotive Recycling 51

SPOTLIGHT ON EXCELLENCE
Goyette’s Inc. Auto Recycling
Born to
The foundation of this business,
set forth many years before by its
founders, include a good solid work
ethic and a determination to take on
challenges and overcome them.
Win
BY M I C H E L L E K E A D L E - TAY LO R
52 Automotive Recycling | January-February 2013

Many in the automotive recycling business can relate
to Joe Goyette when he says he really doesn’t
recall thinking about what he liked about the
business that drew him to it – he was just born
into it and that was it. It was almost assumed
from the beginning that he would follow in his
father and grandfather’s footsteps and take over
the family business one day.
Goyette’s Inc. was founded in 1935 when Joe’s
grandfather, Henry Goyette, started a used car lot
in New Bedford, Massachusetts. Joe’s father, Joe
Goyette, Sr. got into the business when he returned
from military service in the late 1950’s. The business
evolved from a used car lot into an automotive recycling
business after customers kept asking Joe, Sr. if
they could just buy the parts off the cars he had on
the lot.
The younger Joe grew up in the business, as did
his father, and started working for the business fulltime
when he was sixteen years old.
“I’ve always been around the business, as long as
I can remember,” said Goyette. “I don’t think I’ve
ever had a sick day in my life while working for my
father. I began working part-time at the yard when
I was 14 years old. I started full-time after I graduated
high school, right in the trenches and had
every job you could think of.
“I spent most of my time with my Dad in the yard
crushing cars and doing groundwork. We would
work every morning, crushing cars. I would head to
Boston at 5:00 a.m. with a load of crushed cars, then
turn around and come back – and start my day at
work. The single biggest thing I learned from my
father was his work ethic, drive, and determination.
He was of the old-school mindset, not afraid of
working hard. He worked 24/7.”
When Joe, Sr. decided to retire,
he left the business to three of his children to manage.
Since then, Joe, his brother Phil Goyette, and
his sister, Paula Reusch, have been working together
as a team. Paula, who currently is Goyette’s office
manager, says she has also worked many different
jobs in the business.
“Like Joe, I have had a lot of different jobs in the
business over the years,” said Paula. “I started out
doing the inventory. I remember putting labels on
the tail lights, alternators, exhaust manifolds,
starters and other parts. My dad was so proud of the
warehouse that he constructed in the 70’s which, at
January-February 2013 | Automotive Recycling 53

SPOTLIGHT ON EXCELLENCE
The work ethic and mindset of their father carries on today
with Joe, Phil, and Paula. Joe says overall, they have worked
really well together.
the time, was state-of-the-art in the automotive recycling
industry. That was a great period of Goyette’s
history and, for me, holds many fond memories.”
The team of siblings also know that their father
would have been very proud of their latest addition
to the building, which holds four new bays for dismantling,
an expanded storage area, and included
an upgrade in equipment.
Joe said he had always dreamed of building a new
warehouse that would feature the capacity to
increase their business and take them forward.
“Four years ago, it seemed like the right time to
act on my dream to increase our production space
by building a new addition,” said Joe. “For me, it has
been the single biggest thing to change our business.
It was a big step forward and we’ve been able
to put in a better work flow to increase the number
of cars we are able to handle so that now we can dismantle
800 cars per year.”
Goyette’s now employs twenty people, and sits on
nine acres in New Bedford, 50 miles from Boston.
They currently run five trucks daily to their delivery
area that covers Boston and Cape Cod, but with
Internet sales, they have a far broader reach across
the country.
The work ethic and mindset of their father car-
54 Automotive Recycling | January-February 2013

I heard it over 1,000 times from my Dad and I can still hear
it today; he used to say, ‘you get out of something what
you put into it.’ He was right.
ries on today with Joe, Phil, and Paula. Joe says overall,
they have worked really well together.
“When we took over from my Dad we just kept
pushing to make things better; there was no coasting,”
said Joe. “We continue to keep taking our business
to the next level. I heard it over 1,000 times from
my dad and I can still hear it today; he used to say,
‘you get out of something what you put into it.’ He
was right.”
“We’ve worked really well as a team,” said Phil.
“Everyone has their separate roles in the business.
If we ever have a conflict or difference of opinion,
we come together and resolve it. Overall it’s been
pretty good and we respect each other’s work in
their area of expertise.”
As times have changed, both Paula and Joe agree
that the introduction of the Internet to their business
completely changed the industry, bringing
both benefits and challenges.
“One of the best things to happen to our business
was probably the Internet, but it was also one of the
worst,” said Joe. “It completely changed the way we
buy cars, which has been positive in the sense that
we can now attend more auctions online, which
increases our ability to buy more cars. On the other
hand, it has also made it more difficult to secure
January-February 2013 | Automotive Recycling 55

SPOTLIGHT ON EXCELLENCE
Change can be tough but it is also rewarding. The Internet has
opened up new avenues for sales, but with the increased sales
volumes comes the need for extra security due to fraud.
good quality inventory because it opened up buying
to a worldwide audience. We have to deal with
buyers’ fees, as well. That part is probably the
biggest pain in the neck.”
Paula agrees that it presents an ongoing challenge.
“Time changes us all and we have to change
with it,” said Paula. “Change can be tough but it is
also rewarding. The Internet has been the single
biggest change to our industry and the business
continues to evolve as technology evolves. The challenge
is to continue to keep up with it. The Internet
has opened up new avenues for sales and that is terrific,
but with the increased sales volumes comes the
need for extra security due to fraud. This wasn’t the
case in the past because we knew our customers personally.
But with the Internet, we will never meet
many of our customers.”
While Goyette’s has evolved over the years and
now boasts a state-of-the-art facility with increased
sales, the foundation that Joe Goyette, Sr. set forth
many years before including a good solid work ethic
and a determination to take on challenges and
overcome them, still remains. It’s a legacy that Joe
Goyette, Sr. would be proud of today. ■
Michelle Keadle-Taylor is a freelance writer in Northern Virginia, and a regular
contributor to Automotive Recycling magazine.
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56 Automotive Recycling | January-February 2013

International Auto Recycling
Reports from Around the World
2012 Convention:
A Union of Professionals
Working Towards Common
Goals and Standards
By Andy Latham
Kelle and Joshi had a fabulous wedding,
guests came from all over the
country and visitors from all over the
world were able to witness the splendor
and color of their special day. They dedicated
themselves to each other and
agreed to share everything for the rest of
their lives.
At the same time, 1,000 delegates from
all over the world gathered in the same
hotel for the 69th Automotive Recyclers
Association convention where they were
able to learn, teach, share, and network
with colleagues from their industry.
The Auto Recycling Industry is one of
the most unique groups where business
owners and managers are willing to sit
down with colleagues from other businesses
and share. Share their successes
and failures, share information on how
they run their business, how they treat
their staff and customers, and their plans
for the future. I do not believe that you
would see this level of sharing in any
other business sector and this is why so
many individuals referred to their fellow
delegates as family.
Highlights for myself included the
seminar that I led (obviously); Ian Hill,
Managing Director of Hills Salvage and
Recycling Ltd., Lancashire, UK, receiving
Member of the Year award for his contribution
that included hosting the
International Round Table and the 2012
CARS show; Keynote Speaker Donald
Cooper’s sessions that were sponsored
by Automotive Recycling Canada, which
had special resonance for me as a leader
and manager; and the discussions over
shared meals and beverages with colleagues
from around the world.
Of special interest was the call from
The Auto Recycling Industry is
one of the most unique groups
where business owners and
managers are willing to sit
down with colleagues from
other businesses and share.
Steve Fletcher (ARC) and David Nolan
(AARA) for global standards in auto
recycling. Over the last ten years, the
auto recycling industry has developed
into a global industry. Auto salvage moves
across borders with ease, and many
countries are able to work with vehicles
that would be scrapped in the supplying
country because they have lower wage
costs, lower repair quality, and lower
environmental standards.
In Europe, many vehicles move from
West to East for repair, even Right Hand
Drive vehicles from the UK and Ireland
that could be repaired and converted to
Andy Latham spoke to the ARA membership during
his seminar, “Future Vehicle Developments and Impact
on the Auto Recycling Industry, a subject in
which he is well versed.
LHD. The majority of these vehicles are
sold into Russia, but some do come back
into use in their original country.
There is a lot of concern in the UK
about the repair quality of motor salvage
that is coming back into use. Insurance
approved repairers are forced to work to
very high standards, with fully trained
technicians repairing vehicles to ensure
that the vehicle performs as its manufacturer
intended in the event of another
accident; however, any vehicle deemed
to be beyond economical repair by an
insurer goes into a “black hole,” where
there is no knowledge of repair quality
or standard of parts used. These vehicles
are then returned to use without any
inspection. Insurers take them on cover
and only find out if the vehicles are satisfactory
when the next claim is made.
Implementation of minimum global
standards is essential, and the ARA has
the opportunity to take the lead in this
and show the rest of the world why it is
the foremost automotive recycling association.
Now is the time to give to the industry
your knowledge, time, and experience,
and work to set a global standard that
illustrates to governments and vehicle
manufacturers that we are a responsible
industry they can trust and work with,
wherever they are on the planet. ■
Andy Latham is Compliance Manager for Bluecycle, UK and
Europe.
iStockphoto.com/akindo
January-February 2013 | Automotive Recycling 57

Capitol Connection
From ARA’s Government Affairs
Congressional Highlights
Deadline Looms for States'
Decisions on Healthcare
Reform
The healthcare reform law enacted in
2010 – the “Affordable Care Act”
(ACA) or more informally called
“ObamaCare” – requires each state to
set up a Healthcare Exchange through
which businesses and individuals will be
able to compare and purchase health
insurance. The exchanges can be established
as non-profit organizations or
state agencies and, reportedly, should
be accessed through online Web sites,
toll-free numbers, or some other type of
assistance program with enrollment
commencing by October 2013. States
have three options for establishing
healthcare exchanges:
1) By December 14, 2012, a state can
elect to run their own exchange.
If a state does not choose this first
option, states have until February 2013
to either:
2) Let the federal government run
the program, or
3) Form a partnership with the federal
Department of Health and Human
Services.
While not all states have decided
which option they will pursue, the breakdown
thus far is as follows:
UNDECIDED: Florida, Idaho, Indiana,
Montana, New Jersey, Pennsylvania,
Tennessee, Utah, Virginia and West Virginia.
PARTNERSHIP WITH THE FEDERAL GOVERNMENT:
Arkansas, Delaware, Illinois, Michigan,
North Carolina and Ohio.
ALLOWING THE FEDERAL GOVERNMENT TO RUN THE
PROGRAM: Alabama, Alaska, Georgia,
Kansas, Kentucky, Louisiana, Maine, Missouri,
Nebraska, New Hampshire, North
Dakota, Oklahoma, South Carolina,
South Dakota, Texas, Wisconsin and
Wyoming.
ESTABLISHING THEIR OWN EXCHANGE: California,
Colorado, Connecticut, District of
Columbia, Kentucky, Maryland, Massachusetts,
Minnesota, Mississippi, Nevada,
New Hampshire, New Mexico, New
York, Nevada, Oregon, Rhode Island,
Vermont and Washington.
Republican efforts to repeal the
healthcare reform law have taken a
back seat to preliminary budget deliberations.
However Speaker of the
House, John Boehner, has stated,
“Over the past couple of years, I have
noted there are essentially three major
routes to repeal of the President’s law:
the courts; the Presidential election
process; and the Congressional oversight
process. With two of those three
ARA Joins NMVTIS in Efforts to Emphasize the Need to
Identify Flood-Damaged Vehicles
In a notice published earlier in November, the Department of Justice (DOJ) warned
National Motor Vehicle Title Information System (NMVTIS) reporting entities to
take extra precautions to identify and brand the thousands of vehicles that have sustained
severe water damage from Hurricane Sandy – damage that can make vehicles’
electrical systems, including airbag sensors, prone to failure. DOJ asserts that this
heightened awareness is necessary to ensure that reporting requirements for flooddamaged
cars are met and so that consumers can be made aware of the dangers associated
with such cars. This notice reinforced the basis of an ARA press release
published at the same time that urged Congress to review implementation and
enforcement NMVTIS so that before consumers purchase a used vehicle in the coming
months they can access current data to learn whether the vehicle sustained flood
damage produced by Hurricane Sandy.
routes having come up short, the third
and final one becomes more important
than ever.”
As reported previously, ARA joined
with other small business groups to
oppose the Affordable Care Act before
it became law in 2010 and since then to
repeal, or at least delay, its implementation.
Business groups such as the U.S.
Chamber of Commerce and National
Federation of Independent Businesses
have continued to pursue repeal and
reform measures.
ARA Welcomes New and
Returning Members of
Congress
After a contentious campaign season,
the results are in and the balance
of power in Washington for 2013
will look very similar to last year, with
Democrats retaining control of the
Senate, Republicans maintaining a
majority in the House, and President
Obama re-elected for a second term.
The 112th Congress lame duck session
convened before Thanksgiving and
was in session until late December to
tackle the “fiscal cliff” of federal budget
cuts and tax increases scheduled to go
into effect on January 1.
Orientation was held for newly elected
lawmakers and internal organizational
meetings were conducted to craft leadership
rosters, including Committee
Chairmen. House Republicans voted by
secret ballot and will be re-installing
their top three leaders: Speaker of the
House John Boehner (OH), Majority
Leader Eric Cantor (VA), and Majority
Whip Kevin McCarthy (CA). Taking
over the fourth leadership position is
Rep. Cathy McMorris Rodgers (WA)
who won a contest against a more senior
Member.
On the Democrat side, Minority
Leader Nancy Pelosi (CA) finally put to
rest the rampant rumors about her
58 Automotive Recycling | January-February 2013

State Issues
November Elections Overview
January marks the beginning of the 2013 legislative session in most
states, as returning and newly-elected representatives head to statehouses
across the country. More than 6,000 legislative seats were in contest
during the November elections, constituting 82 percent of legislative
seats nationwide and resulting in an unusually high turnover rate.
Key changes in the balance of power this year include the Arkansas
Senate, which is in Republican control for the first time since Reconstruction,
as well as that state’s House of Representatives. In Wisconsin, the
Senate returns to Republican control after having a Democratic majority
for much of 2012 due to a recall election. Legislative bodies that switch
from Republican to Democratic control include the Colorado House, Oregon
House, and both chambers of government in Minnesota and Maine.
The New York Senate returns to Democratic control for only the second
time since 1966. Democrats also gained significant number of legislative
seats in the New Hampshire, Iowa and Michigan statehouses.
Voters in 11 states selected their governors on November 6: Delaware,
Indiana, Missouri, Montana, New Hampshire, North Carolina, North
Dakota, Utah, Vermont, Washington and West Virginia. Heading into
the New Year, there are 30 Republican Governors and 20 Democrats.
State legislatures have historically been the driving force behind national
policy in times of government gridlock on the federal level. Given
that the November elections solidified the status quo in Washington, state
legislatures and elected officials at the local level are likely to play an increasingly
important role in the direction of national policy this year.
Members of ARA’s Grassroots Network began reaching out to their
returning and newly-elected members of state government soon after the
November elections, seizing the opportunity to educate their representatives
about the professional automotive recycling industry. As the 2013
legislative sessions get underway, it is crucial that decision makers have
access to valid, reliable information about quality recycled auto parts –
and hearing from ARA members is the first step!
Sample letters of introduction are available on the ARA Grassroots
Network webpage that all ARA members are encouraged to personalize
and send to elected officials in the state legislature and in Congress. ARA
staff is available to help draft and review letters, as well as provide additional
resource material about the automotive recycling industry.
Information on how to locate your elected official, tips for developing
that relationship, sample letters and talking points are available on the
Grassroots Toolkit page of the ARA Web site.
ARA Grassroots Toolkit
Outlook for the 2013 Legislative Sessions
ARA staff, along with ARA affiliate state chapters and Regional Directors,
will be closely monitoring legislation that is introduced in all 50 state
legislatures that could potentially impact the professional automotive
recycling industry. Issues expected to dominate the 2013 state legislative
agenda include: salvage acquisition and inventory, unregulated/unlicensed
buyers at salvage auctions, Bid Cards, processing of end-of-life vehicles
with and without a title, access to OEM data, right to repair, scrap metal
regulation, and scrap metal theft, among many others. If you are interested
in learning about what is going on in your state legislature and in neighboring
states, please contact Jessica Thomas, Director of State Government and
Grassroots Affairs at jessica@a-r-a.org or by calling her at (571) 208-0428.
Salvage Acquisition in Battleground Ohio
After the November elections, members of the Ohio General Assembly
returned to Columbus to finish work on a handful of bills, including
Senate Bill 273. As previously reported, SB 273 would allow unlicensed instate
buyers and non-equivalent licensed out-of-state buyers to purchase
vehicles from salvage pools and auctions. The bill passed the Ohio Senate in
May 2012 and was referred to the House Insurance Committee for further
deliberation.
In November and December, the House Insurance Committee held
several hearings attended by representatives from ARA, OATRA, local
auto recyclers, and LKQ who testified in opposition to the bill. ARA testimony
detailed how Senate Bill 273 would erode 30 years of work in law
enforcement, environmental, and consumer protections. ARA members
and Ohio-natives George Sapir (Intercity Auto Wrecking, Bedford) and
Greg Bender (Speedie Auto Salvage, Dover), both testified as to the rampant
auto theft plaguing Ohio in the late 1970s/early 1980s that the current
salvage law was designed to address. Both emphasized that there has
been no demonstrated need proven to warrant a change. ARA testimony
included letters from state affiliate chapters and Regional Directors joining
the bill’s opposition.
On December 12, the Ohio House of Representatives adjourned without
casting a vote on SB 273, marking the end of an extensive grassroots
advocacy campaign. ARA would like to recognize the efforts and commitment
of all professional automotive recyclers in Ohio and will continue to
fight for a robust and competitive salvage vehicle marketplace for our
members. Future efforts will be informed by the recent debate in Ohio.
retirement by announcing that she will
stay on in that position.
Senate leadership on both sides of the
aisle will be pretty much the same as
last year. Senate Democrats will continue
to be led by Majority Leader Harry Reid
(NV). Minority Leader Mitch Mc-
Connell (KY) will stay on as the Republican
leader. The leadership of the Senatorial
Committees in charge of recruiting
and retaining candidates for the
2014 Senate races is expected to change
for both parties.
The new 113th Congress sworn into
office in January will bring diverse talents
and levels of experience to the House
and Senate. Some of the newcomers
have policy expertise while others bring
interesting and unique skill sets to
Congress. Freshmen Members of Congress
will include a retired Marine Corps
Colonel who wrote tax policy in a state
legislature for small businesses owned
by deployed military personnel, a reindeer
farmer, a pilot with experience flying
in counternarcotics missions in
Central and South America, and a large
animal veterinarian.
ARA staff are meeting with the new
members to introduce them to the professional
automotive recycling industry,
and to present the industry’s current
issues and priorities. ■
January-February 2013 | Automotive Recycling 59

Crossword Puzzle
By Murray Jackson
Across
1. ‘09 Jeep for disoriented driver
5. ‘99-’04 Olds offering
8. Road-trip home away from home
9. An eBay car sale
10. Suspension comfort, in a word
11. New-car buying incentives, sometimes
14. Highway-access lane
15. Vehicle vendor
18. ‘09 Suzuki pickup
20. A well-oiled group, you might say
23. One-way-out street (4,3)
24. ‘80s TV series about street-side diner
25. Short-lived fifties Ford
26. Motorists
Down
1. ‘82-’88 Cadillac with 4-cylinder engine
2. ‘71 AMC model
3. Shaft on which wheel rotates
4. Motorcyclists’ eyewear, informally
5. Garth’s “Wayne's World” wheels (1,1,1,5)
6. Former Ford and late Lotus
7. ‘78-’90 Dodge econobox
12. Lotus-driving “The Avengers” character (4,4)
13. Big-rig chauffeurs
16. Stopwatch-monitored track interval (3,4)
17. Fully-optioned car, slangily
19. Hot-rod slang for four-barrel carbs
21. Sharp ‘09 Ford crossover
22. ‘80s TV series with Checker cabs
60 Automotive Recycling | January-February 2013

2013 Industry Calendar
JANUARY
19
Colorado Automotive Recyclers Association
info@coloradoautorecyclers.com
www.coloradoautorecyclers.com
23-25
Collision Industry Conference
Hilton Palm Springs
Palm Springs, CA
Reservations: (800) 522-6900
ciclink.com
FEBRUARY
22-23
Carolina Auto Recyclers
Sheraton Imperial Hotel & Conference Center
4700 Emperor Blvd Durham, NC 27703
Contact: jim@carolinaautorecyclers.com or
kat@carolinaautorecyclers.com
www.carolinaautorecyclers.com
MARCH
12-15
2013 Mid-Year Business Development Conference
Hill Days & Legislative Summit
Hyatt Regency Washington On Capitol Hill
Reservation: (402) 592-6464 / (888) 421-1442
www.a-r-a.org
To include your event in ARA’s calendar of events,
e-mail the complete listing to Maria@a-r-a.org.
Visit www.a-r-a.org for the most up-to-date calendar.
MAY
3-4
Upper Midwest Auto & Truck Recyclers
Convention & Tradeshow
Morrison’s Auto Inc.
6307 W State Rd 59 Edgerton, WI 53534-9420
Contact: Sandy Dumke
carsofwi@yahoo.com
10
B-CAR Midyear Meeting
Penticton Lakeside Resort
21 Lakeshore Drive West
Contact: kenhendricks@ara.bc.ca
17-18
Ohio Auto & Truck Recyclers Association
Location: All Foreign and Domestic Auto
500 North Wilson Rd.
Columbus, OH 43204-1458
Hotel: Marriott Courtyard Hotel
2350 Westbelt Drive
Columbus, OH
Keep checking for updates!
17
NM Certified Automotive Recyclers Association
(MNCARA)
Contact: Sandy Blalock
(505) 301-6849
bconsulting4u@gmail.com
Ad Index
AA Midwest.....................................................................55
ARA University..........................................................19
ARA 70th Annual Convention & Exposition .......11
BizUnite........................................................................7
Brock Supply Co. ......................................................14
Buddy Automotive Innovations...................................6
Car-Part.com..........................................................C-4
Company Wrench ....................................................54
Connection, The .........................................................5
CRUSH/S3 Software Solutions, LLC.....................54
Hollander, a Solera company .............................C-3
Lamb Fuels.....................................................................35
MarkingPenDepot.com...........................................56
Pemberton......................................................................23
Pinnacle Professional .............................................37
RAS....................................................................................17
Recycle Cat......................................................................10
SAS Forks...................................................................13
Salvage Audio Exchange.........................................51
Sierra International Machinery.................................9
SuperShear.....................................................................33
United Recyclers Group...........................................C-2
Vander Haag’s, Inc. ..................................................61
Wells Fargo Business Insurance ...............................21
Get Ahead in 2013
To advertise, contact Caryn Smith at
(239) 225-6137 or e-mail ARAEditor@comcast.net.
Answers from Puzzle on page 64
13-15
13th International Automobile Recycling
Congress IARC 2013
Brussels, Belgium
Save the date!
21-23
Greater Midwest Automotive Recyclers Expo
Dana Adamy
info@ari-ne.org
www.ari-ne.org
22
Ontario Automotive Recyclers Association
Mariott Toronto Airport Hotel
901 Dixon Road, Toronto Ontario M9W 1J5 Canada
Contact: Sherry Baugh
(800) 399-8743
For Reservation: Call (800) 905-2811,
Mention “Ontario Automotive Recyclers Association”
to receive the group rate, valid until March 7, 2013.
APRIL
3-4
Collision Industry Conference
Hyatt Regency Phoenix
Phoenix, AZ
Reservations: (888) 421-1442
resweb.passkey.com/go/CollisionIndustryConference
11-13
URG Conference
Inverness Hotel Englewood, Colorado
For Questions: E-mail urgconference@hotmail.com
or call (303) 367-4391
Keep checking for more information!
21-23
American Salvage Pool Association (ASPA)
JW Marriott Starr Pass Resort and Spa
Tucson, AZ
Registration Coming Soon!
31-6/1
Iowa Automotive Recyclers
Jackson County Fairgrounds
Contact: Sue Schauls
(319) 233-7970
iowaautorecyclers@gmail.com
JUNE
21-22
NEARA Trade Show
Mark’s Auto Parts & Recyclers
22 Russell Road, East Granby, CT 06026
Contact: Marcy King
mking@coresupply.com
NOVEMBER
6-9
70th Annual Automotive Recyclers Association
Convention and Exposition
Phoenix Convention Center and
Sheraton Phoenix Downtown Hotel
Phoenix, Arizona
www.araexpo.org
(888) 385-1005
Save the Date! Registration Coming Soon!
Send your 2013 events to
Maria@a-r-a.org
January-February 2013 | Automotive Recycling 61

Final Thoughts
By Michael E. Wilson, ARA Chief Executive Officer
michael@a-r-a.org
Get With the Programs
As we begin the New Year, the professional
automotive recycling industry
is positioned to capitalize on an improving
automotive economy. Those of us in
the automotive industry know all too
well how difficult the last five years have
been in terms of the simple economics
of supply and demand for automobiles.
As consumers have held onto their cars
longer, the average age of motor vehicles
on the road reached an all-time high
and the number of vehicles at or nearing
their end-of-life status is also climbing to
historic levels. Fortunately, consumers
are becoming confident once again
about their purchasing power – a confidence
that is forecasted to bolster automobile
sales volumes. In fact, according
to industry experts, sales volumes of new
automobiles will surpass 15 million this
year and recover to 17 million units sold
by 2018.
Along with this increase in new vehicle
sales comes a direct increase in the number
of the vehicles turned in, which have
been driven for much longer than
planned and are now at or nearing their
end of life. Soon, if not the case already,
various entities will be receiving these
vehicles. As an expert in the economically-sound
and environmentally-friendly
management of end-of-life motor vehicles,
the professional automotive recycling
community stands ready to
efficiently address these vehicles during
the next phase of their life cycle.
From specific issues including battery
management, refrigerant and fluids to
all the moving parts in the automotive
supply chain, ARA members have the
invaluable expertise to handle all the
management issues surrounding these
vehicles. Members’ personnel have
much to offer their communities in
terms of consumer protections, environmental
stewardship, and efficient
commerce platforms to optimize the
full economic and environmental value
Consumers are becoming confident once again
about their purchasing power – a confidence that is
forecasted to bolster automobile sales volumes.
Along with this increase comes a direct increase
in the number of vehicles turned in,
now at or nearing their end of life.
of the millions of vehicles that annually
reach this point.
As an ARA member, you have access
to an infrastructure recognized worldwide,
which includes a multi-layered certification
process that verifies members’
performance on environmental, safety,
and business standards, unique relationships
with inventory cataloging entities
to maximize automotive parts reuse, as
well as an emergency response protocols
to process vehicles damaged in events
precipitated by changing weather conditions
to the ultimate of natural disasters.
With all the various investments in
your business, this is the year to maximize
the value ARA affords each of its members.
Today, it is your opportunity to pick
up the phone and call ARA to see what
programs you might be overlooking that
can help your bottom line. The ARA
website is also full of important information
about the numerous benefits included
in your membership. If you have not
done so already, explore ARA’s “Certified
Automotive Recycler” and “Gold Seal”
programs. Market conditions are changing
and these programs continue to
increase in importance.
Countless opportunities will be missed
if your business is not continually reaching
for ways to improve. Don’t put it off
another day. Go to the ARA University
website and discover of all the resources
available at your finger tips 24 hours a
day, seven days a week.
Mark Twain once said, “You will be
more disappointed by the things that
you didn’t do than by the ones you did
do.” Take the steps today to make 2013
the year in which you check off those
items you have been meaning to do. ■
iStockphoto.com/kali9
62 Automotive Recycling | January-February 2013

Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA