Aftermath: The Effects of September 11
It
was a day like any other - until chaos broke loose. On September 11, business
literally stopped as horrified Americans watched the destruction of one
of our nation's most visible skylines. And now that the damage is done,
many of us are trying to assess the short- and long-term effects. Auto
recyclers across the country offered their views on the tragedy and what
it might mean for the auto recycling industry.
A Short-Term Slowdown
"It was certainly the most terrifying experience
any of us ever had," said Maury Leiser, vice president of Ridge
Road Auto Parts in Cleveland, Ohio. "Nothing seemed important anymore.
Our hearts were all with the victims and their families. And of course
business was slow as a result. People were less inclined to travel. They
stayed closer to their families. They weren't buying."
"That day itself was a very slow day," said David
Staber, owner, Cadott Auto Recycler
Sales in Cadott, Wis. "We were trying to function as normal but we
were glued to the TV - with very few customers and virtually no calls.
In fact, we were picking up the phones every so often just to make sure
they were still working.
"This event has had a definite effect on our business,"
continued Staber. If you look at the historical data for September, we
were off about 30 percent. We're starting to recover from it now, and
return to normal. But I see fewer repairs being done and less available
vehicles because people aren't traveling - so they aren't as likely to
have accidents."
"Like everybody else in the country, this was a
shock," said Billy Roberts, president and co-owner of Roberts
Salvage, Inc. in Moffett, Okla. "I think everybody was sitting back
at first, waiting to see what would happen because we're all in uncharted
territory.
"In the short term, people are going to be giving
a lot more thought to their purchases," continued Roberts. "We see that
in the downturn in new car sales and it's going to echo in recycled sales."
He acknowledged that his shop had a little downturn in business immediately
after the attack but it's rebounding. "We're getting back to a normal
life and I'm pretty optimistic."
"We've gotten better as each day went by," agreed
Allen Lindquist, president of Bow
Auto Parts in Bow, N.H. "But I still think people are focusing on
the terrorist acts in their spare time and not repairing their cars. That's
a loss of business for us. I've talked to a lot of recyclers who are going
through the same thing."
Jack Duncan, president of J&W
Auto Wreckers in Antelope, Calif., also talked to people within the
automotive recycling industry. "It appears to me that for the first week,
it slowed down in different facilities, but on the whole business has
been good for a lot of people - including my own. Car purchases are still
high. Scrap prices haven't changed for our region. We seem to be doing
well."
Ron Miller, president of Auto
Krafters, Inc. in Broadway, Va., noticed a drop for only a short time
at his classic parts business. "We saw a downturn for only two days. By
the end of the week, sales had rebounded and were back to normal by the
following Monday. I attribute that to the fact that this is a hobby for
many people. As more people are staying home, and not traveling, they
spend more time with their hobbies. It's another way to escape. And they're
still buying classic car parts."
According to Annette Adelsberger, owner of AA
Auto in North Little Rock, Ark., "The decrease in sales was quite
obvious with the tragic events that occurred. After the second week, sales
picked back up and people were trying to resume their normal lives."
"Lean" for the Long Term
"In the long term, people are going to rethink how
they spend money," said Staber. "This could have a positive impact on
our business if people hang onto their vehicles longer and buy recycled
products. That's yet to be seen.
"It still might require a little belt-tightening,"
he acknowledged. "In our own business, we're going to rethink our plans
for expansion and new hires. I suspect this will force everyone to rethink
what they're doing."
Lindquist agreed. "The tragedy could have some positive
effects on the industry. People are going to start tightening up and keeping
track of their expenses. The used part industry is going to benefit. Before
September 11, the economy was so good that people were spending money
and not thinking. That day changed everything."
Roberts predicted some industry shakeouts as a result
of September 11. "This might accelerate the departure of those companies
that were marginal. We've already seen a few businesses in our area in
the southwest that have gone out of business - both before and after the
tragedy.
"Even so, I remain optimistic about our future and
the opportunities we have," said Roberts. "The companies that remain focused
on the customer and their needs are the ones that will prosper. It will
be important to continue to build alliances with customers, suppliers,
and other recyclers - and a good business is going to do that anyway.
But it becomes even more important in these times."
According to Duncan, "the larger facilities are
going to do better. They'll be able to stay in business because they have
the room to store their vehicles. Falling scrap prices are a problem.
Some yards rely on that market and they're simply not going to get the
money. But overall, the industry will do well. People tend to fix their
cars, instead of buying new ones, when we have a recession."
"I'm optimistic that we'll continue as we are,"
affirmed Miller. "I don't know that the growth will be there, but the
springtime is supposed to be strong. Of course, it depends on what happens
between now and then. If we don't have terrorist attacks on our shores,
then the industry should revert back to normal."
Adelsberger thinks the industry will see an increase
in sales. "The tragedy has opened more jobs in security, food and transportation,
both private and public, which in the long-term should increase sales
for everyone. I believe in areas where public transportation is not in
place, the used market will become even stronger."
"I don't think anything that's going to happen to
the American people will change our spirit," said Leiser. "People are
very resilient. After time heals the wounds, there won't be any long-term
effects on business. We'll definitely return to the way things were, with
an element of mistrust and suspicion."
Going Forward
A few recyclers offered advice to those grappling
with the aftermath of September 11.
"Our unity will strengthen our moral fiber as Americans,"
said Adelsberger. "Because we will need to maintain awareness to protect
our families and our country. As a business, awareness will be key."
"Make sure your business is lean," explained Miller.
"Replace those positions that are critical. Wait on expansion." Miller's
company is following his advice, and holding off acquiring another company
that was a potential partner before the tragedy.
"Keep your expenses in line," echoed Lindquist.
"Make sure that you're making money on each part of your business."
"Take care of your customers and tend to your business,"
said Duncan. "It may sound basic but it's so important and sometimes people
forget.
"Times are changing," he said. "And this attack
will make it worse or better - we're not sure. But dismantlers are survivors
and we'll succeed, God Bless America."