From humble beginnings as a one-person operation to overseeing a thriving enterprise with a workforce exceeding 80. From the initial ventures of buying salvage and selling parts to establishing an efficient dismantling system and developing a robust recovery and transport business, boasting a fleet of over 100 vehicles. Richard Stewart, Managing Director at Vulture Recycling and EuroRoute, shares his remarkable journey into the auto recycling industry.
From Humble Beginnings to Industry Pioneers
We started in a very primitive way in 1975 in Dumfries as ‘one man and his dog’ buying salvage for sale for rebuilding, and after two good deals, we made a big mistake and had to dismantle it to cover costs. We called the business Demolition Autos Dumfries, following what some French dismantlers did. This was in the days of Allegros, Maxis and MK2 Cortina’s, etc., so they were not the best cars, which, of course, helped the parts business grow. It also created a problem in that the demand for Allegro fuel tanks was about 50 times greater than supply, so we, like most other dismantlers, sourced new parts to keep sales flowing. We then had a stack of shells to dispose of, so the fourth department was started.
Business grew, and we opened an additional site in Stranraer. The advent of contract buying arrived, and we were founding members of NSG, which sparked more of these groups, and our volumes grew despite being in a very rural area. Sandy Dalgano, Hamish Irvine and us, covered all of Scotland, and we even went as far south as Barrow in Furness.
Standards were rising constantly, and we tried to keep abreast of change by being one of the first in computers, high racking and very clean premises. We eventually gained the ARA GOLD standard, which I believe was the only one achieved in Europe.
Dumfries and Galloway are very sparsely populated and low-earning areas, so salvage quality tended to be low, and any premium units were hauled to a city repairer. So in the days of parts sales being to locals only, this was quite tough. However, we grew to about 80 employees, but when approached, we sold the new parts factoring business to Dingbro and, some years later, the main used parts business to Hills (we retained two new parts sites and two ELV used parts sites).
Unleashing VULTURE Technology and Expanding Fleet After Hills Salvage & Recycling Ltd. Acquisition
We sold our main Dumfries site to Hills and the salvage business that operated there. Over the years, we had built up a scrap business at two sites, together with selective machine segregation of parts that we had conceived, striving to maximise the possible recovery and segregation of multiple metal grades. We have recently taken this to a new level with an incredibly powerful and capable machine attachment in VULTURE that we sell in either a kit form or a complete turnkey solution, which is winning orders and admirers.
We dismantle ELVs locally obtained and from our eight recovery depots dotted around the country. We still operate two retail new parts shops and a used parts warehouse in Stranraer. The most significant part of the business is now the recovery and transport business, which my son Peter has grown over 12 years to a fleet of 100+. We import recovery trucks and assemble others using COMEAR bodies. We have a hire business (S6.co.uk) that hires vans, trucks and rally cars, two garages with MOT stations, and an online new parts business (Autoshop.co.uk) – it keeps us busy!
Innovation: The Engine of our Recycling Evolution
We change many things, so much so that our IT contractor jokes that one more change and we will be back to where we started, but if you are not prepared to change you will get left behind. We (Peter & I) come up with many ideas – some good, some mad, but being creative has generally helped us. Computerisation, racking, Vulture dismantling, and truck building have all contributed to the development.
Overcoming Rural Hurdles with E-Commerce
South West Scotland, on a dry day, is quite a nice place to be, but the sparse local population was initially a drag on sales. Since online selling arrived, we are seeing benefits in that our land and labour costs are lower than most, yet the part can now be ordered from your armchair and arrive on your doorstep almost anywhere in the UK the next day.
Inter-Trading Challenges & Opportunities
Whilst there are lots of like-minded businesses around, we still don’t do a great deal of inter-trading. We might be in the minority, though. We decline numerous requests, as do others, but engaging in more inter-trading is likely to enhance overall sales, but some may worry about loss of margin, etc. We have a UK panel delivery service van for our own sales, and some customers are tagging other dismantling businesses on to this. We hope this might also lead to us also collecting for our customers on the return trip.
A Strategic Approach to Growth and Adaptation
We plan to expand in a controlled manner in areas that have a profit potential. The Vulture project, in particular, shows potential for International growth, which is quite exciting. The industry has changed massively over recent years to big players and, indeed, manufacturer interest, but hopefully, there is still room for quality smaller players. Insurance really means spreading risk, and this, coupled with the electric revolution, will undoubtedly see some benefits and others struggle.
To learn more, please visit www.vulturerecycling.com and www.eurorouterecovery.co.uk.
