April 2021

BY Mark Blinston, BM Catalysts Commercial Director B M Catalysts, UK manufacturer and exporter of catalytic converters, DPFs and front pipes, is no stranger to adapting rapidly to meet the ever-changing industry, consumer demand and diverse vehicle car parc. The firm believes that reacting sooner rather than later can offer more opportunities to forward-thinking aftermarket companies. Ahead of Brexit on 1 January 2021, BM Catalysts launched an online Brexit resource to offer advice and guidance on the new rules. The company says any problems encountered as a result of Brexit will be “short term” and it can already see improvements in trade supply routes. The brand also reverted to a short-term buying strategy of volatile raw materials like rhodium and palladium to remain competitive as the prices of precious metals remain unsettled. By reacting quickly to both Brexit and fluctuating precious metal prices, BM Catalysts has been able to create efficient processes and strategies to stay ahead of the game. Brexit issues short-term With the company investing considerable time and resources into preparing for Brexit, it has ensured that the necessary infrastructure is in place to help facilitate supply of its products as seamlessly as possible to customers in over 35 countries worldwide, despite the challenges. From its UK manufacturing base, customers also continue to receive dedicated sales and technical support, alongside marketing support to help develop and grow sales of BM Catalysts’ ever-increasing product offering. BM Catalysts has been working closely with logistics partners on new systems and additional paperwork for customs and border controls. Nearly all BM Catalysts catalogued part numbers meet the standard required to claim UK origin, meaning they are not subject to tariffs under the Free Trade Agreement between the UK and EU. It’s been taking a little longer than usual for overseas customers to receive their orders as a result of changes to customs procedures and clearance, but we’re seeing this time shorten every day. From when the order is placed to the point of dispatch, lead times from our end remain the same and we’re fulfilling 100% of all orders thanks to our high availability of products. We’re confident in our process. It’s not the first time we’ve had to navigate through difficult times with changing legislation and we thrive in these situations, putting in place solutions to help ensure the best possible working partnerships for our customers. 18 AFTERMARKET APRIL 2021 BUSINESS www.aftermarketonline.net Adapting fast to changes in the industry is the key to future success according to BM Catalysts QUICK REACTION Volatile precious metal prices Raw materials used in the manufacturing of catalytic converters continue to fluctuate rapidly, prompting BM Catalysts to revert to a short-term buying strategy of precious metals to remain competitive and ensure that when the commodity prices reduce, these savings can be passed on to the marketplace quicker. Over the past two years, precious metal prices have increased significantly. Rhodium, used in the manufacture of catalytic converters, is one of the most expensive precious metals. It’s also one of the rarest elements on Earth and arguably one of the most volatile pricewise, having begun 2020 with a value of just over £4,000 per t oz before increasing a huge 210% over the following 12 months. At the time of writing, it remains volatile with sudden rises now common, with the price having increased by 60% since the start of December alone. It is now trading at well over £20,000 per t oz. What’s causing the price rises? There are many factors influencing the sharp rise in precious metal prices, in particular rhodium, which has left the price of gold in its wake. The main use for rhodium is in catalytic converters that are designed to clean vehicle emissions. Rhodium, amongst other precious metals including palladium and platinum, act as the trigger for the chemical reaction which starts to break down harmful exhaust gases. The global drive to improve air quality, Over the past two years precious metal prices have increased... ”