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Aftermath
Effects of September 11


Billy Roberts, president and co-owner of Roberts Salvage, Inc., is optimistic about the industry's future despite the recent attack.
 


Felicia Lowenstein

November / December 2001

 

Billy Roberts, president and co-owner of Roberts Salvage, Inc., is optimistic about the industry's future despite the recent attack.
 

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."




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