19 March 2009
Garage Business
Green Costs Green
Everyone wants to save the environment, but is everyone also willing to pay the price?
The environment is top of mind these days. And while consumers and businesses are jumping on the green bandwagon, it’s easy to forget that going green takes a lot of green if it’s to be done right.
So if it costs money to be environmentally friendly, who should be paying the bill? Some would say the consumer, while others point at the corporate end of the food chain. How about you? When it comes to green initiatives at your shop, are you willing to eat the costs, or will you pass the costs on to your clients.
Greener than most
Contrary to popular opinion, our industry is one of the most environmentally responsible out there. Although the government considers our repair shops to be hazardous waste producers, we’re actually doing a very good job of managing our waste. I have said it before in this column, but it is worth repeating: No industry has cleaned up their environmental impact more than the automotive industry.
In the repair sector we are diligent at being good corporate citizens. For example, we store and recycle, oil, coolant, air conditioning gases, batteries, tires, and even metals. We service our waste water by running it through separators. Waste sludge is then removed by licensed contractors. Currently shops are having back flow valves installed in the event that the city mains go down.
Even the vehicles we work on are vastly more environmentally friendly than their predecessors. In fact, 95% of the materials going into today’s cars are recyclable. No other industrial product is that recyclable, period.
Government involvement
The government is more than happy to pass laws to make things even greener. The “Blue Box Program Plan” was approved by the Minister (Ontario) on December 22, 2003 and commenced on February 1, 2004. The Municipal “Hazardous or Special Waste program Plan” (MHSW) was approved by the Minister on February 19, 2008 and commenced on July 1, 2008.
If you do business in Ontario, you will soon be confronted by a program called “Stewardship Ontario.” It will tax containers of hazardous materials with the goal of raising funds that will be used more than the automotive industry. to divert these containers from the local land fill. They are to be disposed of responsibly.
The idea is a good one: Charge the folks who produce the stuff for getting rid of the waste containers after the products have been consumed. The way I understand it, the tax is to be paid by the companies that manufacture and market certain designated materials.
In reality, however, I think we all know who is actually going to pay the bill: the consumer. The fee paid by the manufacturer always manages to trickle down the chain, leaving the consumer holding the bag.
How about you?
So where does that leave you? If manufacturers start charging you more for certain products because of the new fees they have to pay, you will likely pass the costs on to your customers, or be forced to work with dwindling margins. Which will it be?
At our shop, our invoices include a basic environmental charge. We will also have to collect and store the above-mentioned items until they are collected by a registered collector. The charges could also appear as price increases. Remember: Green costs, and somebody has got to pay.
Dave Redinger is a mechanic with over 40 years experience who owns and operates his own shop in the Toronto area. Dave hosts the Neighbourhood Mechanic show, heard on Chum 1050. The Neighbourhood Mechanic can be seen on Dave’s national television show on E Channel. Both shows deal with automotive issues.
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