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J&K Salvage


J&K Salvage Company is considered the premier scrap metal recycling centre within New York. This company aims at recycling old and unusable metal scraps with the purpose of maintaining the earth green. J&K accepts scrap metals from people and pays them on the spot. Later, it crushes and shreds scrap metals for recycling. J&K salvage accepts wide range of such metals, ranging from automobiles, light iron, motors, plate and structural steel, cast iron, turnings and millings, heavy iron, production waste, aluminium, stainless steel, brass, bronze, heater cores, rims, radiators and even heater cores. This firm has been in business since 1995.

J&K Salvage Company Analysis Example

The cash for clunkers (Cars program) was designed by the federal government by allotting $3 billion to lure customers into disposing older gas guzzling trucks, cars and SUVs for recent and more environmentally friendly models (Nash 17). This program proved successful as most people disposed their older automobiles for newer ones. The main task during this period was for the recycling firms such as J&K to meet the high levels of crushing rates required as more and more vehicles were disposed off. According to Jim Biggs, a yard supervisor at J&K Salvages, the supply of vehicles for crushing from dealers increased from about 20 to 200 during this period (Tahmincioglu 7).

This necessitated J&K Salvages to improve their operations to much this pressure. As a result, this company embraced technology in carrying out its processes. J&K introduced electronic maintenance of records to reduce the time it takes to serve various customers. This significantly reduced the pressure on its operations. In addition, this firm adopted online processing where dealers would book for their services online.

In addition, J&K introduced online processing of funds to be paid to their customers instead of serving them manually. The influx of vehicles for crushing during this period exerted pressure on available facilities such as the firm’s yard. J&K had to rent out another yard for temporary storing such cars before they were crushed. Introduction of electronic recording at J & K Salvage has helped to improve the security of both their systems and services. This in turn has increased the efficiency with which this firm operates.

Scrap Metal on the Global Market

The use of metals is increasing all over the world as several construction projects are always on progress. Scrap metal is merchandized among countries and has proved an important commodity of export for the USA. Scrap metal ranks the second largest export to China in terms of dollar value. Since scrap metal is traded on the global market, economic conditions affect the demand and price. During recession, scrap metal prices drop significantly. It is because, during recession, the economy slowed down and reduced the demand for raw materials.

The supply of scrap metal also diminished because people found it easier hold on to big ticket items for a longer period of time. This resulted in shortage of scrap metal that inflated its price. China and other emerging countries have increased demand for scrap metal, which has raised its price. The price of scrap metal has increased to $400/metric tonne from $250/ metric tonne (Anonymous 3).


The demand and price for scrap metal under the prevailing economic conditions has prompted J&K Salvage to review its operations. The increase demand for scrap metal in China and the larger Asian region has made this firm to compete at the international scale. This firm is advertising in these far countries and these promises are giving fruits. The current financial report by this company reveals increased profits attributed to its ventures into the international market. Use of technology for online adverts by this firm has finally showed signs of paying returns.

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