The entire world had to face gruesome ramifications of a virus that shunned the outside world to us. The advent of illness has instilled fear in the minds of people all across the globe. While many industries have suffered losses and changed their approach due to the situational misery, car recycling industry has been equally affected by the wrath of Covid. However, the invention and rollout of the covid vaccine in Australia is now being seen as a lifeboat for the car recycling market. If you also want to understand the effects of Covid on auto recycling industry and some of the cons which will linger on for a long duration, read on to know further. We will discuss the challenges faced by the industry and the aftermath of it.
These times have been highly disturbing for the entire aftermarket and auto recycling industry. As much as we would like to consider this drawback as just a hiatus, it is going to affect the industry in the long run as well. With fewer cars running on roads, not many cars have gotten into accidents. The parts are not entering the salvage market and nobody is there to buy them as well. Moreover, people restricted to their homes do not feel the need to sell their junk cars as of now.
The mass furloughs and layoffs throughout the industry have been unfortunate to witness. Some factories have also resorted to a shutdown in Japan, Italy and China. Even the movement of scrap or in fact any material has come to a halt. Another reason why there is no demand for salvaged parts or materials is the fact that people have been extremely cautious with the money. Covid has caused the customers to watch their money and not make a purchase unless absolutely necessary.
To spot the silver lining the clouds, we have also observed some positive changes that these times have brought to the industry. Businesses adapt to situations and challenges to keep their livelihood and brand afloat. One of the major positive changes observed across the industry is the hygiene aspect. The restrictions have compelled retail stores to not let the clients enter. It also results in operating the stores differently and providing auto recyclers with less business.
Now that the vaccine rollout has gained momentum in Australia and we’re also ready for the second phase of it, car recycling industries are expecting to see the light of the day. The vaccine will allow people to mellow their fears and move out more often. The more cars are seen running on the road, the better the business gets for the auto recycling market. However, the complete revival of the industry can only happen gradually. We also have to consider the fact that local production of the vaccine is still a challenge for Australia. As and when the local production starts in its full form, the rollouts would come in rapid phases allowing more people to leave the confines of their homes.