Decreased activity has affected auto salvage sector revenue, but some trends seem to be working in the industry’s favor.
When Americans take fewer trips and drive fewer miles, it inevitably has an impact on the supply of salvaged vehicles and demand for replacement parts and components. That means COVID-19, the pandemic caused by the novel coronavirus, has affected the automotive salvage and recycled parts business as it has nearly every other aspect of life in 2020.
The second-quarter 2020 financial results of one of America’s largest automotive recycling firms, Chicago-based LKQ Corp., demonstrate the pandemic-related challenges facing the sector but also include bright spots pointing to its resilience.
Sandy Blalock, executive director of the Automotive Recyclers Association (ARA), Manassas, Virginia, says some ARA member companies are struggling because of the economic slowdown, but the sector’s early recognition as an essential business has set the tone for most companies to work their way through the difficult conditions.
Read the rest of this article HERE