Proper Credit: This industry idea inspired by very-well written RMC article from few years back.
Locomotive recycling in Steam era: The Roads most likely handled all their own loco salvage operations, dealing with: train wrecks, boiler explosions, fire victims, worn-out units. Salvageable parts were highly prized; helped keep down the very high expense/ manhours of making new parts, to keep the snorting beasts in service. And parts were very likely also traded w/ other Roads. In Diesel era, however, many early locomotive manufacturers had disappeared; their locos got older, wore out, were wrecked, burned. Many were re-engined by cannibalizing from other identical units. Eventually; independent diesel locomotive salvage/ restoration yards sprung up; became sustainable businesses. Many sold good, rebuilt, re-engined older units, as cheaper alternative motive power than buying new; especially for the smaller Roads.
Basic Facility Overview: Industry sits along adjacent layout main. Spur enters through track gate (is fenced, w/ night security & guard dogs…Copper, aluminum is highly sought-after by thieves). Spur branches into several others in yard. Large main structure, (metal wall or masonry) with 1 or 2 tracks entering through high overhead doors( track could pass through building, for loco storage behind it) and is where locos are restored, keeping them and the work crew out of inclement weather. A Yard Office, large machine/ heat treat shop might be in or attached to main structure. In smaller facility, Yard Office could be an old caboose; parked on closest spur. The yard is a beehive of activity. An overhead traveling crane straddles one spur, w/ hook & electromagnet; constantly loa