Staff Shortages in the Auto Recycling Industry

There was a common theme at the recent URG conference: staff shortages are increasingly becoming problematic for Auto Recyclers globally. 

There were seminars on staffing at URG, and plenty of the conversations at the bar were centered around this issue. Even during our Yard Field Trip, it was a hot topic of discussion. 

Finding good staff and getting them trained and then retaining them is one of the biggest problems facing our industry today.

It’s not just Auto Recycling. 

The manufacturing industry is also grappling with a significant shortage of skilled workers. According to a report by the National Association of Manufacturers, 77% of US manufacturers are reporting difficulty in finding employees with the necessary skills.

Similarly, the National Institute for Automotive Service Excellence found that 80% of automotive repair shops in the US reported a shortage of qualified technicians. 

How can businesses manage this shortage and solve the problem?

Just as our business name suggests, I love looking at a good solution to any Auto Parts problem ;)

The staff shortage problem is clearly not just an issue for small businesses. I noticed last week that Elon Musk and Tesla are doing what a lot of businesses can’t necessarily afford to do to address the problem. They’ve thrown crazy money at it. Tesla are currently running campaigns such as this one below in the most recent Paint and Panel Magazine for Collision Technicians and Collision Painters:

An excellent recruitment campaign. If you can afford it.

But what if your business can’t justify this cost but equally can’t afford not to? 

Every single day that you don’t have sales teams answering the phone or dismantlers on the ground with cars, you are losing money! 

You’ve got parts that aren’t shifting and you’ve got cars sitting in the lot waiting to be processed.

Some ideas that I have heard Auto Recyclers are doing at the moment include:

• Buying tools for their dismantlers on a rent/buy agreement

• Tool cart vouchers for staff

• Incentives for longevity

• Higher than average salaries/wages

• Higher commission structures

• Cash incentives for faster dismantling

• Training and development opportunities

• Implementing flexible scheduling or remote work options

Ultimately, managing the shortage of skilled workers in the automotive recycling industry will require a multifaceted approach that combines recruitment, training, retention, and technological innovation to create a more attractive and sustainable industry for workers.

I’d love to know how your business is competing to find and retain good staff?