Stadium Auto Parts fast tracks growth – Recycling Today

July 17, 2022 by No Comments

Hyman Wright founded Stadium Auto Parts in Commerce City, Colorado, in 1945 when he bought an auto garage that sold gas and shifted its focus to selling auto parts. The company eventually expanded with a parts warehouse, run by just two employees. 

In 1971, Hyman’s son Norman Wright took over as head of the company, which he has continued to grow. In March of this year, Stadium Auto Parts, which has 30 employees, opened a 38,000-square-foot auto dismantling facility in Commerce City that can handle 120 cars per month, soon to expand to 180 cars monthly. The facility merges the operations of two sites the company owned previously. The goal was to increase capacity, efficiency and space.

Wright doesn’t plan to slow down, however, setting goals to grow the company in the next three to five years by increasing how many cars Stadium can process, expanding Stadium’s staff and increasing revenue.

“We’re seeing growth right now because there is a supply chain shortage and our parts are available,” Wright says. “A lot of the new parts are on backorder for three, four months. So, more collision and mechanic shops are looking to us to get cars back on the road.”

A digital start

Wright says Stadium purchases most of the cars it processes through salvage auctions held in Denver. About six auctions occur per week, he says, selling about 3,000 cars total. Stadium purchases complete vehicles to avoid issues with stolen parts and chop shops. The company also makes purchases through private insurance companies.

Stadium typically purchases cars that are 10 years old or younger. This way, the parts still have some value and the risk of breaking down because of their age is minimal.

Once the vehicles have been purchased, they are brought into the new facility to be cataloged. Workers scan a car into Stadium’s digital inventory system called Pinnacle Professional from CCC Information Systems in Chicago. This includes the cars’ makes, models, years and colors, as well as photos of them, to include in its inventory. 

The parts are cataloged using Hollander Interchange by Solera, Minneapolis, a system that allows Stadium to find the parts and displays how much the part has sold for. Stadium tracks the vehicles by how long it takes to sell the parts to recover their costs, called inventory turnover.

“It offers a full gamut of management tools to run the operation,” Wright says of Pinnacle. “We track each vehicle by stock numbers. Our management reports include how long the car has been here, how much we sold off the car and a projection of what parts we’ll sell.”

Full-service dismantling

After a vehicle has been inventoried, it is taken to an 8,000-square-foot dismantling building, which has seven bays. There, one of eight dismantlers is given a list of the parts that need to be removed from the car. One dismantler can dismantle a car in half a day on average and is paid based on performance and how quickly and efficiently a vehicle is dismantled, Wright says.

Each dismantler is equipped with power and pneumatic tools, such as power saws and impact wrenches, from various suppliers. They also use car lifts and cranes to assist in the process.

Stadium is a full-service dismantling company that specializes in newer model cars. Wright says this positions Stadium well for the future relative to self-service auto recyclers because it can handle vehicles with modern technology.

While self-service companies require …….

Source: https://www.recyclingtoday.com/article/Stadium-Auto-Parts-auto-recycling

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