Collective efforts continue to drive the recycling industry and wider auto care sector forward
From March 26-28, the Ontario Auto Recyclers Association (OARA) hosted its 2026 convention. This annual event represents the single largest automotive recycling expo in Canada, and naturally drew attendees not only from across the province, but across the country, from the U.S. and even internationally, from places as far away as Australia. Illustrating just how popular this event has become, it was also the best attended on record with over 430 registrations.
As in previous years, the event contained a mixture of general sessions, workshops, an on-site trade show, as well as ample social and networking opportunities.
Following meetings and as well as recycler and stakeholder roundtable sessions on March 26 [where recyclers, insurers and vendors openly discussed current market situations and creating a potential collaborative strategy regarding accreditation and repair standards for the industry going forward], the official sessions kicked off the following morning.
Recycled parts trends
Ryan Mandell, from Mitchell International hosted a session on Recycled Parts trends. Mandell dove into some of the key issues currently impacting the industry, including tariffs. While he acknowledged that the U.S. Supreme Court had struck down a range of International Emergency Economic Powers Act (IEEPA) tariffs, for the automotive industry Section 232 still remains in place, which means that it costs more to ship parts into the U.S. and since these tariffs came into force last year, the U.S. economy has begun to see inflation creep up again.
Mandell noted that often, what happens in the U.S. tends to be a harbinger of what we can expect here in Canada. He also explained that many OEMs have been waiting on the outcome of the Supreme Court Decision when it comes to raising prices on parts and complete vehicles. “The losses created as a result of tariffs, are staggering,” Mandell explained, and because parts are a different animal to complete cars (i.e. consumers are not often comparing parts against each other like they do vehicles), it tends to be easier for OEMs to raise prices on parts to cover their losses.
He noted that while Canada is currently more insulated against current tariff polices, the global nature of today’s automakers and supply chains means that price increases are likely to be seen across the world, due to the globalized nature of raw materials.
He also stated that inflation is not uniform, meaning some types of parts are seeing much greater price increases than others, such as bumper covers and headlight assemblies.
“When it comes to high cost parts like modern headlight assemblies and bumpers, there are potentially big opportunities for recyclers who can provide these components.”
Supply chain disruptions
Additionally, the recent conflict in the Middle East is likely to bring supply chain disruptions again, and the combination of higher parts prices and reduced availability provides recyclers a distinct advantage, since today, collision centres are more focused on profitability since they can’t rely on insurance claim volumes the same way as they have in the past. This means looking at a repair first approach and considering used parts instead of new ones.
The latter is also becoming a more prevalent approach among insurers that are looking to meet GHG and sustainability targets. Plus, when it comes to high cost parts like modern headlight assemblies and bumpers, there are potentially big opportunities for recyclers who can provide these components for less money, plus when things like broken tabs can be repaired, there is more profit for collision centres and across the entire supply chain.
Artificial Intelligence is currently a hot topic, but many businesses are still trying to grasp how to best implement it in their business. Chris Daglis from ARI Auto Partnered Solutions provided some suggestions. He talked about fragmented versus embedded AI and “a tale of two yards.”
While, in this hypothetical scenario, both yards were busy, the first one had a fragmented approach to using AI, resulting in hours of time lost and major inefficiencies, because his AI solutions were not integrated into the business. The second operator took a different approach where multiple AI tools are used for different purposes.
The AI takes calls overnight and on the weekends, and signs them to the sales staff. Additionally an AI buying tool allows efficient searching and bidding on the right vehicles, maximizing both time efficiency and profitability. Daglis explained that in today’s environment, talent alone doesn’t win, it must be combined with the effective teamwork and the right systems in order to achieve optimal results.
By having tailor-made AI tools and solutions that are fully integrated into the business, instead of just bolted on, recyclers can create a purposeful, connected and compounding process—one in which efficiency gains not only add up, but multiply across every aspect of the business. And the time to start doing this, said Daglis, is right now.
A special guest this year was the Honourable Member of Provincial Parliament for Milton, Ontario and Associate Solicitor General for Auto Theft and Bail Reform Zee Hamid.
Auto theft update
Hamid noted that auto theft within Ontario remains a significant problem, and the amount of auto theft that has been taking place is staggering. He said that over the years it has essentially morphed from joyriding into a true commodity driven business. While he explained that the Government of Ontario has been taking action, and that overall vehicle thefts were down 24% in 2025, it still remains a serious issue.
While around half of all vehicles stolen are exported and the government is making it tougher for criminals to do this, a growing issue concerns domestic VIN fraud. He noted that among auto thefts, a common problem is that these vehicles are later resold and VINs are recreated.
This poses a problem in many ways, a good example being that when a vehicle is involved in a collision, or is towed or impounded, or stolen, the VIN doesn’t exist. And with advanced technologies like AI, the ability to steal vehicle identities and create fictitious new ones is a growing problem.
Hamid stressed the need for government to work together with industry, including recyclers and insurers, leveraging both technology and collaboration to combat this serious problem.
Working together
A panel discussion that brought together multiple industry associations also stressed the need for collaboration to further objectives. Hosted by Steve Fletcher, former OARA Executive Director and now industry ambassador, the panel included Patty Kettles, Executive Director, Automotive Aftermarket Repair Organization (AARO), Emily Chung, President of the Automotive Industries Association of Canada (AIA Canada), Mario Venditti, Director, Canadian Association of Recycling Industries (CARI); Adam Moffatt, Executive Director, Ontario Tire Dealers Association (OTDA) and Jim Hamilton, Executive Director, Used Car Dealers Association (UCDA).
The panel looked at the synergies between the different associations and how each and its members can bring significant value to the table when it comes to the benefit of the auto care and service sector. Adam Moffatt talked about the growing problem of scrap tire stockpiles in Ontario, and how recyclers, insurers, collision repairers and tire retailers and vendors can all play a role in helping tackling an issue like this. There truly is strength in numbers and based on the way in which we’ve seen Canadian industry associations focus on collaboration in the past, there is a bright future in developing and advancing these collective relationships and objectives.
Belief + strategy = results
A fascinating keynote address came from Jer Banta, from Profit Team Consulting. Banta talked about Belief, Experiences, Growth and Finding Purpose. He shared with the audience is own experiences working in the auto recycling industry, starting as a college dropout, delivery driver, then getting into parts sales and becoming a sales manager and director and ultimately, industry consultant.
Banta said that one of the key factors to being successful is having the right culture within the organization and “getting the right people in the right seats.” During his time at Bessler Auto Parts in Kentucky, Banta said that by adopting the Entrepreneurial Operating System (EOS), brought much needed clarity to the organization, enabling it to determine what the vision and core purpose were, finding concise ways of measuring progress and sharing it with the staff, plus determining which people in the organization matched its core objectives and were vested in achieving the same outcome.
When that happened, he said that the “the team started to feel part of something and we all had the same goal: We knew how much profit we wanted to make, what the sales goals were and if we were hitting them.”
By collectively working together as an entire team, focused on the same outcomes, Banta said that things really began to gel. Sales took off, profits increased and any obstacle, no matter how big or small could be effectively managed and overcome, including COVID related disruptions. He noted that when Bessler started making consistent profits, the company instigated a profit sharing plan with its employees and its 10-year goal in revenue was reached in just six years.
Ultimately, he said that when you have the belief, be committed and take action, and that if you do, you will find a way to make things happen.
This article originally appeared in Autosphere Magazine, April 2026