CONFIRMED BY COVID

As an essential business amid COVID-19, the strength of the North American automotive recycling sector has been thoroughly demonstrated—and investors are taking note.

During the first of the Ontario Automotive Recyclers Association’s (OARA) virtual training series, guest speakers Rob Rainwater, Mike Kunkell and Lee Worman from Profit Team Consulting discussed the various lessons auto recyclers have pocketed amid the pandemic.

While Worman said the industry always knew it was essential, the pandemic reaffirmed this belief not only to auto recycling businesses across the country but to the wider economy. “We always knew we were essential. Thanks to this label, we’ve been able to lessen the impact on the financial side of things and we’re very, very fortunate as auto recyclers,” said Worman.

“There are definitely a lot of equity firms out there now approaching our industry in a whole new light.”

Worman said equity firms and investors are already noticing the strength of the sector and considering investment opportunities in various verticals.

“A lot of equity firms have looked to move money toward our industry, whether it’s on the scrap side or on the salvage side. The best part about that is that it has also made our businesses worth more than they were before.”

The Profit Team Consulting group also said the idea of remote salespeople can hugely benefit businesses in the post-pandemic era, as can the idea of a “hybrid staff.”

“When you can hire remote, your ability to hire a better staff member has increased exponentially,” said Worman. “Pre-pandemic, your hiring pool was a much smaller group. The entire country of Canada may be up for hire in a remote environment.”