IAR Recyclers Newspress January / February 2014

22 / 24

Page 22 Recyclers News Press
New Numbers Released on Automotive
Shredder Industry in North America
Recycling Today recently released its biennial report
on the number of automotive shredders in North Amer-
ica and found that while roughly 14 percent of shred-
ders in operation in 2012 have since closed, competi-
tion within the industry for materials remains fierce and
some analysts say the industry is still at overcapacity.
Since 2012, Recycling Today re-
ports that more than 40 auto
shredders have shut down and are
no longer in operation. Within the
United States, 297 automotive
shredder operations remain, with
three of those businesses currently idle. According to
some within the industry,
shredders are being idled
as a result of this competi-
tive environment. When
combined with shredders
located in Canada and Mex-
ico, the shredder count in
North America jumps to
325.
The state of Texas has the
most shredders, with 26. Ohio and Florida both have
16 shredders, and Pennsylvania has 15. New York
had the most automotive shredders no longer in op-
eration and overall, the Northeast saw the most clo-
sures with 13 shredders. One factor contributing to
the large number of shuttered businesses could be
the number new shredders installed in recent years,
adding to overcapacity in the industry and making it
more difficult for smaller and mid-size shredders to
survive.
Consolidation within the industry as more steel opera-
tions purchase existing shredding operations, and in-
tense competition for raw materials are also listed in
Recycling Today's report as contributing to the state
of today's auto shredder industry. To read more about
the report, please
Make Sure OSHA Inspects Correct
Facilities - Know That Automotive
Recycler Facilities are Described By
nd 423140 NAICS Codes
If OSHA inspectors come knocking on your door, make
sure the inspector
understands that
your business
falls under the
nd
423140 NAICS
code and NOT the 5093 SIC code that describes scrap
metal facilities. Knowing your business industry classi-
fication codes is critical because many inspections are
based on specific SIC codes and inspectors often con-
fuse the automotive recycler's
code with the code describing
scrap metal facilities, an indus-
try which experiences a much
higher incidence of OSHA viola-
tions than ARA 5015 facilities.
This information was provided
through the ARA Safety Super-
visor Newsletter. ARA Member
make sure your Safety Supervi-
sor is receiving the information. Questions/Comments?
Send email to
ARA Updates
Industry news from the national association