The automotive recycling industry is in a constant state of flux. Supply chain issues are affecting new car production, which in turn affects the used car parts industry, which in turn affects the recycling of automotive parts.
Troy Webber, chief executive officer of Chesterfield Auto Parts in Richmond, Virginia, said the biggest issue his company is facing right now is market volatility.
“It used to be that you could predict the market to some degree based on seasonal changes and annual market trends. That predictor has been gone for some years now,” Webber said. “The markets are being affected by global issues more than local and domestic factors like supply and demand.”
Political issues around the globe, worldwide shipping shortages and shifting policies in foreign governments are also making it more expensive to do business.
“When the price of scrap gets as high as it was earlier this year, we struggle to obtain cars. While we make more on the vehicles, the cost of goods increases as well,” Webber said. “This is because anyone with a tow truck can take vehicles directly to a scrap yard and make a lot of money.”
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