NORFOLK,
Va. - Walk into an automotive junkyard and you might
expect to be greeted by a scruffy old man sitting next
to mounds of parts guarded by a couple of vicious
dogs. Walk into Norfolk Recycling Corp., an automotive
salvage yard along U.S. 58 in Suffolk, Va., and you'll
find vehicles neatly parked side by side. Inside the
garage, parts are categorized and bar-coded for
inventory control.
Each
part is labeled with an internationally accepted
damage code describing the accident and the damage
suffered by the original vehicle. A nearby office is
staffed with salespeople sitting at laptops selling
parts all over the world.
Welcome
to the new state of the auto recycling business, says
S. Warren Richard Jr., president of Norfolk Recycling.
Sitting
in his office on a recent spring day, Richard is
tracking an online auto auction. On the screen, a Ford
Ranger pickup truck with a rapidly escalating bid.
"I lost a car Friday to Russia," says
Richard, looking at the screen.
"The
scale of the business we're in is an international
now. I heard 46 percent of the cars going through the
auctions are being exported. It's not Joe Smith down
on the corner selling you a hubcap and buying a $50
car off the street."
Vehicles
are bought for their scrap steel value, which has
climbed in price from $2 per hundred pounds in the
early 1990s to $10 today.
"Most
of it is going overseas because the dollar is
low," Richard said. "And export shipping
rates are low compared to income because there are so
many more imports coming into this country than
exports."
Exacerbating
the problem is the scarcity of vehicles.
"When
I was a kid, we'd go down to North Carolina and there
were junk cars laying everywhere. You don't see that
anymore," said Richard, who travels as far as 200
miles to get a car or truck that he wants.
He
deals mostly with vehicles newer than the 2000 model
year. Key parts - such as engines, transmissions, body
parts, computers and air bags - are pulled and
cleaned. Suspension components are X-rayed to ensure
the metal isn't stressed.
"Then,
all of the fluids are recycled," he said.
"We have receipts to show that they are taken
away by licensed haulers or they're reused."
If you
visit the yard and expect to pull a part from a
vehicle yourself, you'll be surprised.
"We
don't let people in the field here," Richard
said. "In the old days, you had a bunch of junk
cars lying out in the field. The guy could go out,
look around and take what he wanted.
"That's
fine if you're dealing with $50, $100, $200 cars. But
we may spend $3,000, $4,000 or $5,000 on a wrecked
vehicle. So we can't let someone who wants a $10 piece
tear up a $200 component."
Then
there's the problem of safety.
While
you might expect technicians to receive special
training to dismantle a hybrid car, even ordinary
cars, which have as many as 15 computers, require
care.
"I
bought a 2007 Fusion," Richard said. "It was
sitting here in the yard and, because of the way the
computer controls and the air pollution controls are
set up, we didn't disconnect one electrical current,
and the thing caught on fire."
The
increasing sophistication of cars and trucks is
reflected in the salvage-yard business, said Sandy
Blalock, president of Automotive Recyclers Association
in Fairfax.
"The
mentality of our members has changed, and it's being
driven by our customer base. I think our customers are
more educated to what to look for."
Blalock,
whose organization developed the damage codes now used
on recycled parts, said that most yards deal with
wholesale customers such as insurance companies and
car dealers, with retail taking a back seat.
"If
someone walks in the door, we're not going to be rude
and throw them out," Richard said. "But it's
not the great majority of our business because of the
parts we deal with; I've got 2008 model cars here.
There aren't many people looking for 2008 model parts.
Their car is going to be under warranty."
Richard's
business is part of the Premium Recycled Parts Group,
a group of 69 yards with a hub in Charlotte, N.C.
Richard's trucks ferry parts to Richmond, which are
shipped to Charlotte. On the return trip, the truck is
filled with parts from other yards.
"We
can get a part from Chicago in two days," he
said.
Norfolk
Recycling is one of the many yards in Hampton Roads, a
market that hasn't experienced the consolidation seen
among salvage yards in other markets, such as
Richmond.
"Ten
years ago, 86 percent of yards had 10 employees or
less; now it's 54 percent," said Michael Wilson,
ARA executive vice president, who says that the
increasing level of sophistication is leading to the
consolidation.
But all
of the practices also allow for one side benefit:
"Our parts are now being compared to after-market
parts," Blalock said.