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Five Things To Know About Brake Pad Copper Laws

Like it or not, this could be our generation's asbestos. We are just at the start of what could be a painful, but necessary, process that will impact the automotive aftermarket and the environment in a positive way.
By Andrew Markel
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1. Two states have passed laws, and more are looking: 
California was the first state to enact a law regulating copper and other substances in brake pads. Washington was not far behind with an even more detailed law. Hawaii, New York, Rhode Island, Oregon and even countries are considering their own laws. 
 
2. The new laws targets the “installer”: 
Along with manufacturing and distribution, the California and Washington state regulations use the term “installer” (not the most flattering term) in the law’s language. This means a shop in these states could be fined $10,000 fine per violation if a non-approved brake pad is installed.
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3. The laws target other harmful substances in brake pads: 
While copper has gotten most of the attention, these new laws target asbestos, chromium and other heavy metals in brake pads that harm nature and technicians. 
 
4. These laws are being phased in NOW:
While these laws will not be in full effect for more than 10 years, many components of the laws are being phased in as you read this. By January 1, 2013, friction material manufacturers who do business in Washington state are required to submit a report on their use of copper, nickel, zinc, antimony and other metals. By 2015, all new inventory must be labeled saying if it complies with the law. Manufacturers, distributors and “installers” have 10 years to sell off existing inventory. In California, the law also restricts the use of the cadmium, chromium, lead and its compounds on January 1, 2014.
 
5. It might impact your choices for brake pads: 
The laws do put new financial and technical burdens on friction material manufacturers. Under the Washington state law, friction material formulation has to be tested by an approved laboratory and the applications that use this material must be submitted so the right label can appear on the box. Every step in the process costs money and time. These burdens may be so great that some manufacturers could get out of these markets completely.
Like it or not, this could be our generation’s asbestos. We are just at the start of what could be a painful, but necessary process that will impact your shop and the environment in a positive way even if you do not live on the West Coast. It is my opinion that these new requirements will improve the pads you are installing on a vehicles. More to come. 

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When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

By Art Blumenthal
Leveraging more than 30 years of experience as both an aftermarket business owner and aftermarket technology executive, Art Blumenthal LLC provides business intermediary and advisory services to both buyers and sellers of industry businesses of all sizes. Art is a member of IBBA (International Business Brokers Association, Inc.). For more information, or to initiate a no-obligation confidential consultation, visit www.art-blumenthal.com.
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Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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