Shan Lathem on Leadership, Legacy, and the Future of Automotive Recycling
URG’s Member highlight this month is with Shan Lathem owner of Cocoa Auto Salvage, past president of the Automotive Recyclers Association (ARA), where she shared her remarkable journey in the automotive recycling industry. Her story blends family legacy, business acumen, and a deep passion for elevating the industry. Here are the key takeaways from her conversation.
A Legacy of Leadership
Shan is a second-generation auto recycler whose parents founded Cocoa Auto Salvage in 1979. She began working in the business at age 16 as a delivery driver. After earning a business management degree from the University of Central Florida, she returned to the family operation to lead the accounting office and oversee financial operations during a time when the business employed around 80 people across multiple sectors.
Following the passing of her father and brother and her mother’s retirement, Shan unexpectedly stepped into the leadership role. Despite the challenges, she found strength and purpose in continuing the family legacy.
Core Business Lessons
Shan credits her parents with instilling in her the importance of fairness — to employees, vendors, and the business itself. She also emphasized the significance of building a strong company culture, explaining that the right team is key to success. Her anecdote about a struggling tire technician who later became a top-performing parts puller underscored the idea of “right person, wrong seat.”
Moreover, Shan discussed the importance of letting go of toxic employees quickly to preserve company culture — a critical decision many business owners delay to their detriment.
Advice for New Recyclers
Shan encouraged newcomers to ignore outdated stereotypes of the recycling industry, highlighting its professional, technology-driven, and opportunity-rich environment. She stressed the importance of education, relationship-building, and attending industry events for networking and inspiration.
The Power of Associations
Shan’s involvement with ARA, URG, and FADRA (Florida Auto Dismantlers & Recyclers Association) has been instrumental to her success. She’s an advocate for profit teams, conferences, and collaboration between recyclers, vendors, and industry leaders.
She especially praised the ARA and URG partnership in launching a Quality Assurance Program, noting that this cross-collaboration is a game-changer for recyclers who want to elevate standards.
Looking to the Future
Shan believes the industry will continue to see consolidation, but she views this as a positive force pushing independents to innovate and improve. She anticipates a growing role for hybrid vehicles and continued reliance on internal combustion engines (ICE) despite the rise of EVs.
Online visibility and digital infrastructure are also key areas of focus. Shan emphasized the importance of up-to-date websites, inventory data feeds, and e-commerce readiness. As consumer behavior shifts, recyclers must meet demand for online access and streamlined digital services.
Current Challenges
According to Shan, the biggest challenge in the industry is sourcing affordable salvage vehicles. With growing export demand and rising auction fees, domestic recyclers struggle to maintain inventory. She called for balanced export regulations and stronger partnerships with insurance companies and auction platforms to help recyclers compete fairly.
To maximize each vehicle’s value, Shan advocates investing in dismantling technology, inventory management systems, and traceability.
Workforce Development
Shan promotes from within and cross-trains employees across departments to foster understanding and teamwork. She emphasized the need for formal documentation, manuals, and retraining to ensure consistency and supports autonomy among staff.
Resources like ARA University (ARAU) and industry consultants are also vital tools in developing a knowledgeable and high-performing team.
Concluding with Resilience, Innovation, and Generosity
Shan Lathem exemplifies the resilience, innovation, and generosity that define the best of the automotive recycling industry. Her leadership, humility, and commitment to professional excellence set a powerful example for both veterans and newcomers. Her advice is clear: stay plugged in, leverage your network, invest in your people, and never stop learning.
With leaders like Shan at the helm, the future of automotive recycling looks brighter than ever.
