Auto Recycling World FEB2023 / by Adam Malyszko / Read original article

Adam Małyszko, CEO of the Association of Car Recycling (FORS) in Poland, provides Auto Recycling World with his opinion of the car recycling industry over the past twelve months and where the industry is headed in 2023.

What will 2023 be like?

Forecasts indicate that 2023 will be similar to the fourth quarter of 2022. In many countries, in January, companies received new higher energy bills, as well as having had increased the remuneration of their employees. And, of course, general business costs have gone up. However, it should be noted that in the recycling industry, we cannot count on raising prices for used parts too much because the value of these parts would approach the prices of new parts – then the repair of the vehicle would become unprofitable.

The first quarter of this year will show how inflation has affected the recycling industry. 2023 will be a test for many companies. There is the probability that those who are not professionally prepared to run such a business will have the biggest problems and may give up. With a reduced number of vehicles to be dismantled, the competition will be fierce. Professional entrepreneurs with up-to-date knowledge of the used parts market shall have the best chance to survive. Prices for vehicles handed over for disassembly will be high, thus margins may be lower than expected. There is no doubt that we will have to spend much more time analyzing what we are disassembling, whether we will sell the part and at what price. Having experts in this field can guarantee the success of the company.

Is inflation the only problem?

No, inflation is not the only problem. There is no denying that we are increasingly feeling the manufacturer’s influence on our industry. The best example is the increasingly frequent electronic blocking of the possibility of reusing parts, which has become a real problem. …

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