A few years ago, the automotive recycling industry was experiencing one of the worst slowdowns in industry history. Exports of scrap metal were down, primary commodity prices had dropped, and the tariffs imposed against China were affecting the auto recycling industry immensely.
Fast forward to 2020 and the industry experienced one of its busiest years in recent memory. While some industry experts are scratching their heads and wondering how, during a global pandemic and people driving less and less, an industry such as automotive recycling could see significant growth in certain areas of the business.
According to Amanda Richards, head buyer at Junk Cars New England and marketing manager at Seymour Auto Wrecking, the auto recycling industry has experienced growth in the area of used car parts, while other areas of the business have slowed.
“The pandemic has caused used part sales to soar because people want to find cost-effective ways to repair their vehicles rather than junking their car,” Richards said. Of course, since the onset of the COVID-19 pandemic people have been traveling much less, thus fewer cars are on the road, resulting in fewer accidents.
“Wrecked cars that we usually get from the auction are less available, causing an increase in the amount we have to pay to get those types of vehicles,” Richards said. Also, because of economic instability, many people are choosing to hold onto their cars longer, where in the past, they may have been more willing to junk their car and buy a newer vehicle.
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