Special awards edition! industry recognizes the best shops of 2017
red hot sema
Glitz and glamour in the desert heat of Las Vegas!
Country catches up in autonomous development
Expert tips on how to work with the new generation
Building A Dream Don Morton and Don-Mor CARSTAR have never stopped expanding in London, Ontario
Plus Our complete report on the CSN Collision Centres’ conference, MPI’s new training centre, Joseph McDougall of Axalta on the future of the industry and much, much more! Volume 16, Number 6 l December 2017
Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
ON THE COVER 21 Built for the future Don Morton and the team at Don-Mor CARSTAR have never stopped advancing.
Volume 16, Issue 6, December 2017
features 26 top talent Joseph McDougall of Axalta on how to get the best people in a competitive market. 33 Canada’s Rise Recent reports indicate Canada is catching up in autonomous development. 37 innovative future CSN looks at the best ways to deal with disruption at its annual conference.
The SEMA Show brings the best in glitz, glamour and gear to the Las Vegas strip. Check out our exclusive report!
49 Big Money Warren Buffet eyes Axalta, at the same time as the company is in merger talks with AkzoNobel. 64 getting a clear view The complexities of windshield repair in the new era of ADAS.
NEWS 83 COLLISION REPAIR 89 Towing & Recovery 91 RECYCLING
Construction of the Haiti Arise collision repair school is slated to begin in 2018.
Think millennials are unmanageable? These repairers have learned the secret.
On the Cover: Don Morton, owner/operator of Don-Mor CARSTAR. Photography by Mike Davey.
YOUR ONLINE SOURCE
Canada’s collision repair information resource. New articles and top news stories daily. Visit www.collisionrepairmag.com.
6 Publisher’s page by Darryl Simmons Brave New World. 12 Who’s driving? by Jay Perry Develop Success. 14 Dear john by John Scetta High Tech. 16 Prairie view by Chelsea Stebner Hail Rescue. 18 training by Andrew Shepherd New Disruptors. 19 point blank by Sam Piercey In support of the Sam Piercey Foundation.
HAVE YOUR SAY. We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to firstname.lastname@example.org.
96 Recycling by David Gold The data dilemma.
December 2017 collision Repair 5
BraveNEwworld New products, new processes, new optimism
PUBLISHING DIRECTOR JAMES KERR (416) 628-8344 email@example.com EDITORIAL DIRECTOR MIKE DAVEY (905) 549-0454 firstname.lastname@example.org
By Darryl Simmons
riting this in the afterglow of SE M A , t he e xc ite me nt pulsing though this industry is beyond obvious, it’s contagious. Incredible advancements in technology and processes are creating a new and ever-expanding collective unconscious of pride and professionalism. It certainly is well deserved. The bevy of hot new products on display at SEMA will soon be making their
PUBLISHER DARRYL SIMMONS (647) 409-7070 email@example.com
no longer be considered a chore, but a mandatory process to help mitigate a possible lawsuit. What worked for years, years ago, is just not going to work anymore. It’s true that we are not as litigious a country as the US. But the conversation about liability has now firmly crossed into the legal sphere. It’s now bigger than all of us. This could represent a shift in public consciousness about liability for proper repair.
EDITOR ALEXANDRE DUGAS (905) 370-0101 firstname.lastname@example.org ASSOCIATE EDITOR ERIN MCLAUGHLIN (905) 370-0101 email@example.com CREATIVE DEPARTMENT MICHELLE MILLER (905) 370-0101 firstname.lastname@example.org GREG SMITH (905) 370-0101 email@example.com STAFF WRITER JEFF SANFORD firstname.lastname@example.org TOM DAVIS email@example.com VP Industry Relations & Advertising GLORIA MANN (647) 998-5677 firstname.lastname@example.org
what worked for years, years ago, is just not going to work anymore.
Managing Director iMM/Director Business Solutions & Marketing ellen Smith (416) 312-7446 email@example.com SPECIAL PROJECTS MANAGER MIKE CAMERON (905) 370-0101 firstname.lastname@example.org CONTRIBUTORS David Gold, Jay Perry, Chelsea Stebner, andrew shepherd, John Scetta, Barett Poley
way into the progressive shops across the country. These investments, along with a renewed focus on proper training will all but guarantee the success of owners and managers looking ahead of the curve as this industry constantly progresses. One of the hottest topics on the stages, in the seminars and in conversations on the show floor, was the impact of certification and the ever-increasing role Original Equipment Manufacturers (OEM) are playing in the collision repair industry. Car makers are continuing to make their mark in this industry and the standards and processes they dictate will surely impact everything, from training to processes to parts usage. Speaking of processes, the lack of them led to one of the biggest topics not only at the SEMA show, but around the entire collision repair world: The John Eagle Collision case in the US and the after-effects of this $42 million dollar lawsuit against a bodyshop. This is a bellwether to the industry that following and tracking procedures should
If we can take one thing away from this, it’s that we need to remember our priorities. This case should serve as a reminder that the customer is, and always should be, first and foremost. Their safety and security is a bond of trust that should never be compromised. It might take some time for the relationship of different stakeholders in the industry to get on the same page with their sometimes conflicting procedures—namely, who is going to pay for what—but one inalienable truth should be that the goal is to see the customer safely back on the road. It’s a brave new world in the collision repair industry. And it’s brave new shop owners and managers that are leading the way with intelligent investments in new products, training and processes. And to all of you on this journey, “Bravo,” for a job well done!
6 collision Repair collisionrepairmag.com
SUBSCRIPTION One-year $39.95 / Two-year $64.99 Collision Repair™ magazine is published bi-monthly, and is dedicated to serving the business interests of the collision repair industry. It is published by Media Matters Inc. Material in Collision Repair™ magazine may not be reproduced in any form without written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 455 Gilmour St Peterborough, ON K9H 2J8
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Collision Repair magazine is published by Media Matters Inc., publishers of:
People on the move SATA Canada’s new Business Development Specialist, Jason Couillard. Mr. Couillard now also occupies the territory of Quebec for SATA Canada. With many years of experience within the collision repair field, Mr. Couillard is a true veteran Jason Couillard of the industry. “I haven’t always worked at the corporate level. In fact, I started my career in the shops,” says Couillard. “I am very proud to say that my journey through the industry led me to operate within SATA Canada. “ Mr. Couillard has truly made his way accross the collision repair industry through several body shop carreer paths at BMW Laval as well as through several banners such as CarrXpert, Fix Auto and Carrossier ProColor in Quebec. Symach has announced that Gary Lyons has been appointed as the company’s Project Manager for North America, overseeing and Gary Lyons. supporting Symach activities in the region. A statement from the company says Lyons’ experience will bring great value by providing Symach’s North American customers with technical support during installation, pre-and post-installation phases of new bodyshops and maintenance needs. “It’s exciting to be involved with Symach in their revolutionary development of new technology in the bodyshop world,” said Lyons. “I believe Symach’s process is the future of the collision repair industry.” Mirka Canada has made two new additions to its team. Claudio Di Sabato is the new National Accounts Manager and Sylvain Lamoureux will serve as Claudio Di Sabato. the sales representative for the south shore of Montreal and the eastern townships (l’Estrie). Di Sabato has extensive experience in the automotive aftermarket in- Sylvain Lamoureux. dustry, having held sales and management positions at several industry-leading manufacturers and distributors. Lamoureux’s broad range of experience in the industry includes sales at AkzoNobel and Sherwin-Williams, and owning two paint stores.
Spanesi Americas has announced that Karl Kirschenman is joining the Spanesi team as the new Director of Communications and Technology. A graduate of Northern Arizona University, Kirschenman holds a Bachelor’s degree in Communications and brings Karl Kirschenman. over 20 years of collision industry knowledge to Spanesi Americas. “I am excited about the opportunity to support such a wonderful organization,” said K irschenman. Joseph F. McDougall has been named Senior Vice President and President, Global Refinish at Axalta Coating Systems. In his new role, McDou- Joseph McDougall. gall will be responsible for Axalta’s global refinish business, working closely with Axalta’s regional refinish management organizations to increase synergies. “Joe brings a unique set of skills to this new position at Axalta, including a strong knowledge of our business, our strategy and our customers,” said Axalta Chairman and CEO Charlie Shaver. Jeffrey Lieberman has been appointed to the role of Vice President, Legal Affairs & General Counsel for Fix Auto World. “I am excited to join an organization that rep- Jefferey Lieberman. resents innovation and success in the automotive aftermarket industry around the world,” said Lieberman. Global Finishing Solutions (GFS) has announced the promotion of Mick Ramis to the role of Vice President of Automotive Refinish Sales. Since joining GFS in 2016 . According to a statement from the company, since that time he has made contributions managing the company’s parts and filters and service and preventative maintenance departments.
8 collision Repair collisionrepairmag.com
Why not a tiered system of accreditation?
We recently received a letter from Dave Saltzman of Dave’s Collision Works in Nova Scotia, highlighting what he sees as concerns with some of the current shop accreditation programs. You can see his letter below, followed by responses from Andrew Shepherd of AIA Canada and Leanne Jefferies of Certified Collision Care. Remember, we always want to hear from you. Please reach out to us via email to editor@ collisionrepairmag.com.
Dear Collision Repair magazine, I own a busy collision repair business in rural Nova Scotia and would like to comment on AIA Canada’s CCIAP Accreditation Guidelines, as well those put forward by other parties, such as Certified Collision Care. Why do we have the allor-nothing approach to shop accreditation here in Canada? It’s undoubtedly unachievable for many of the smaller size body shops who nevertheless provide excellent collision repairs. A system with different levels of certification like our US counterparts would make more sense, such as what NSF International has launched. (You can see an overview of these guidelines on the opposite page – Ed.) I believe this would equal our medical professionals having different levels of distinction such as nurses, general practitioners, surgeons, brain surgeons and so on. The current guidelines suggest that we all must become brain surgeons! This is not realistic, nor is it healthy for our industry. Having
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accreditation guidelines that allow a shop to qualify for Cosmetic/Non-structural or Structural repair either for steel or aluminum, means the program would become more inclusive for smaller size shops, for the overall betterment of our industry. Items such as 3-D measuring systems, frame racks or dedicated fixture benches are necessary tools, but why must everyone who wants accreditation be required to have such equipment? In Nova Scotia, a few shops spread out across the province would certainly meet the needs of Nova Scotia bodyshops. On occasions where it’s needed, a shop would simply sublet that part of the repair. For example, with current vehicle designs and materials, my multiple frame machines and P4 anchoring systems, which used to be used almost daily five years ago, now see very little use. I expect this trend to continue. In the next five years, I expect vehicles to be advanced enough to tell us they are dimensionally misaligned after a collision. They’ll also provide the data determining if it should be repaired or become a total loss. Lastly, pre-and post-repair diagnostic scans. This is a must and all shops with a minimal investment should position themselves to do inhouse diagnostic scans. The results will prove a vehicle safe to return to customer use or, like our medical profession frequently does, be referred for further assessment. We purchased a new scan tool and have been practicing regular scans for a few weeks now. It’s better to be safe than sorry. Dave Saltzman Dave’s Collision Works Wilmot, Nova Scotia
Dear Collision Repair magazine,
Dear Collision Repair magazine,
I am pleased to be able to respond to Dave’s comments – we have dealt with Dave’s Collision in Nova Scotia through I-CAR for many years and I know the operation to be well-run and Dave himself to be thoughtful and articulate. Dave has certainly put forth a coherent position in his letter to the editor. The accreditation standards adopted by CCIAP (the letter mentions 3-D measuring systems, frame rack and dedicated fixture bench) are amalgamations of shop certification guidelines set forth by OEMs, public insurers and other groups. Broadly speaking, they represent an industry consensus on the requirements of a full-service repair facility in the repair of most popular brands of vehicle today. Dave is correct in that they do not lay out a “tiered” system such as that employed by some public insurers. At the same time, no repairer is forced to become accredited and to become a full-service shop. There are many repairers who will continue to be profitable without dealing with frame repairs, for example. And there is little evidence, so far at least, that becoming an OEMcertified shop has a major impact on revenues. The CCIAP standards will continue to evolve (for example to deal with scanning) as the industry evolves – and AIA will continue to welcome the input of all industry players in managing that program evolution.
My current role is to manage the Certified Collision Care program, responsible for the Nissan Canada, Ford Motor Company of Canada and Fiat Chrysler OEM Certification programs. The certification requirements for our OEM Certification program are established by our OEM partners, to ensure that certified shops have the tools, equipment, training and facilities to repair current and future model vehicles to OEM specifications. You can find more information on the program at certifiedcollisioncare.ca
Andrew Shepherd Senior Director, Industry Programs Executive Director, I-CAR Canada Automotive Industries Association of Canada
Leanne Jefferies Vice-President, Canadian Operations Assured Performance Network/Certified Collision Care The NSF Automotive Collision Repair Shop Certification Program (based on NSF International’s protocol P458) differs from others in that it offer what amount to “levels” of accreditation. There are four
certification types attainable under this protocol:
Cosmetic/non-structural repair: Repairs, refinishes and/or replacement of bolted on parts to restore a vehicle to its original state and shape. Structural repair: Non-aluminum repairs that require welding, rivet bonding and/or measuring and pulling in order to restore a vehicle to its original state and shape. Aluminum non-structural cosmetic repair: A cosmetic/non-structural repair on a part comprised of aluminum. Aluminum structural repair certification: A structural repair on a part comprised of aluminum.
December 2017 collision Repair 11
developsuccess Great leaders invest in developing their people
By Jay Perry
often use this space to discuss leadership essentials and we’re continuing this theme by looking at another area that you will need to be sure to build if you want your business to be truly sustainable. This is the continued development of those around you. It should be obvious that if you have employees you must be capable of supplying the basics for them to be happy to stay with you. More importantly, you need to provide them with what they
You, as the leader, must provide these things for them to prosper under you. How much money do you commit to training and development annually? There is an old saying that if you train people they might leave ... but what happens if you don’t train them and they stay? Technical training is obvious in its benefits because you can see people work with the new equipment, software or procedures. Development is quite different from training. Usually the results take a little while to
what is most important to staff is the opportunity for growth.
need to be engaged in the business and committed to making the operation a success. In study after study it has been shown that employees value things differently than employers. I’ve never seen results of employee interviews where money ranked any higher than number four on a list of what employees want from the employer. Money is important, but employees typically value other things higher, such as considerate treatment, competitive salaries and benefits and considerations for work-life balance. An example of this could be flex-hours or reduced hours so they can care for elderly family members. Those with young families often will want compensatory time for attending family-oriented events such as little league or other sports, dance, music or other art activities their children may be involved in. You definitely want to keep those things in mind, but remember that what is most important to staff is the opportunity for growth and a supporting pathway to realize advancement. In every study I’ve seen, this is always number one or two on the list of things they want from employers. 12 collision Repair collisionrepairmag.com
manifest because people are re-learning approaches to situations. When you develop leaders there is a new skill set required that not many people have had exposure to date in their careers. As a matter of fact it has been shown that supervisors have spent nine years on average supervising before receiving any training or development. There are usually well entrenched habits that need to be supplanted. This process of replacing beliefs needs patience and perseverance. Mentoring can be a part of this process as well as formal education. Personally, I favour direct coaching. Over my career in the field I have found nothing more effective than this for promoting development. Get your people what they need to succeed, and you will be sure to stay the one who’s driving. Jay Perry is co-author of the book Success Manifesto with Brian Tracy, and the founder of Ally Business Coaching, a process improvement and leadership development firm. He can be reached at email@example.com.
hightech We can embrace technology, or be left behind
By John Scetta
e all know that modern collision repair is a high-tech business, but are we embracing technology as fully as we could be? I believe many of us are not. There are two roads we can go down here. On the first path, we fully embrace modern technology and use it to its maximum potential. I believe this will lead to both higher quality repairs and increased profitability. On the second path, we’ll ignore advancements in favour of doing the job the old-fashioned way. This will lead to ruin.
booth and mixing room if you’re not doing this. It requires an initial investment, but I believe you’ll save money in the long run. Third, are you using an electronic measuring system? I believe the electronic systems are more precise. This leads to more complete estimates. It also impacts both customer safety and shop profitability. You can’t fix damage that you don’t know exists. If you don’t fix it, you can’t bill for it. You may be leaving money on the table with every single repair order.
There’s a cost to scanning. The cost of a lawsuit will be even higher.
Embracing technology is more of a philosophy that you adopt, rather than a set list of practices to follow. With that said, there are some questions you can ask yourself to see if you’re as high-tech as you need to be to prosper in today’s environment. First off, are you pre- and post-repair scanning? We’ve heard from consultants like Mike Anderson and numerous OEM representatives that this is something we simply have to do. I know there are concerns about whether or not various insurers will pay for these procedures. That’s definitely a concern, but more and more insurers are coming onboard. Regardless of whether or not you will be paid, this is something you just have to do. Think of it as investment in preventing comebacks and potential liability. Yes, there’s a cost to scanning. The cost of a lawsuit will be higher, even if you win. Lawyers aren’t cheap. Even if that weren’t an issue, you would still need to scan. You owe it to your customers to deliver a safe repair. With today’s vehicles, that means scanning. Second, are you using a colour matching scanner? You’re losing time and money in the spray 14 collision Repair collisionrepairmag.com
Take a look at bumper hits, just as an example. If the reinforcement bar is damaged in any significant way, there’s a good chance that the damage has transferred to the next structural component and so on down the line. Measure it and you’ll know. If it comes back that there’s no further damage, then you’ve still accomplished two things. First, you’ve protected customer safety. Second, you’ve legitimately used a tool in your shop. Make sure to document the use and the reason why, then bill for it. Are there areas of your operation you’d like to improve or questions you’d like to ask? You can send anonymous questions through collisionrepairmag.com/dearjohn, and watch this space for answers! John Scetta is the General Manager of Performance Collision & Restyling in St. Catharines, Ontario. He can be reached via email to john.scetta@ performance.ca.
hailrescue Summer stops being slow when hail storms come around By Chelsea Stebner
s business owners, we all have a certain tension that never goes away—paying the bills, making payroll, earning dollars—all of these are bound to cause some stress. I’m not saying we worry all of the time, but as an owner you’d be lying if you said you never worried. We have mouths to feed, income tax to pay, employees who count on us in order to take care of their families. We have big shoulders. We are risk takers. We are business owners. In Saskatchewan, we usually have just two seasons: winter and construction. In speaking with collision shop owners this year, business has been soft, including during those winter months and it was starting to take its toll. We’ve seen lots of resumes come through the door from folks that have been laid off from local shops. Thankfully we have stayed relatively steady throughout, but the usual three to four week booking schedule was whittled down to a week of bookings. That felt a bit stressful in itself. That’s when you really start to think, “how will we sustain employee levels?” Clean, organize and do all of the maintenance that’s been put off while the shop is
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busy? What if we have to lay people off? How do you make that decision? Imagine how glad we were this year in Saskatchewan we when we were blessed with three seasons: winter, construction and hail! Not one, not two but three hail storms landed in the Saskatoon area. Since the last major storms in Saskatchewan, our insurance company has made significant changes in the way they do business. Shops now have the authority to write some of their own sheets. Insurance has taken in approximately 8,000 claims and pushed about half of those out to shops that get to partake in the program. Two days after the first storm, we were booking eight hail estimates per day and that wasn’t including the usual collision dispatches still coming our way. For you folks that have been working all of your own sheets for years this may not seem like a big deal. In Saskatchewan, it’s a paradigm shift. The insurance company was reacting to the influx of claims with no major hail estimating parameters in place for shops. Sure, we had the fabulous problem of tons of work, but the challenge was getting through it all!
Thinking it was going to be a slow summer, this stopped us in our tracks for a minute or two. We came together and planned on the fly. There were some mistakes along the way, but in doing that we learned so much. Figuring out a booking balance with both hail and collision, having PDR jobs go “push to paint” and fitting them back into
we also know that we are the experts in vehicle repair. It was definitely a very challenging summer. The challenge wasn’t just the types of repairs required, but also taking care to properly manage our relationships with the frontline insurance folks. While we continue to complete the many claims for our mutual customers ,
in saskatchewan, we usually have just two seasons: winter and construction. the bodyshop. We definitely were doing some juggling. We really had to look at hail as another business. Collision shops are inundated with administrative paperwork and we keep hearing from the industry that the ratio of administrative staff to technicians is increasing up to 1:1. Our insurance company requires documentation down to the smallest detail, along with very clear photos (and we know photographing hail damage is not always easy) and a story to back them up. The paperwork was endless. Mouldings, windshields, roof panels and more were questioned. While we understand the need for control and audit in proper vehicle repair processes,
we are also navigating the many changes that have been occurring in our market with our insurance providers, and looking forward to the many yet to come. As partners in this quickly changing industry, both collision shops and insurers need to trust each other to be experts, to be professionals, and to be partners.
Chelsea Stebner is a co-owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, Saskatchewan. She can be reached at firstname.lastname@example.org.
December 2017 collision Repair 17
newdisruptors Coming changes make training more imperative than ever
By Andrew Shepherd
t CCIF in Edmonton in September of this year I delivered a presentation on AIA Canada’s research into the major disruptors facing the automotive aftermarket, including the collision repair industry. Some in the audience saw it as a “doom and gloom” forecast, but I prefer to see it as a clarion call for the new training imperative. Over the past decade the relatively minor fuel economy improvements required under US and Canadian law have produced incredible changes in vehicle technology: aluminum and composite
For example, OEMs will likely move into the insurance provider market. Your vehicle will be able to send information to parts suppliers, the dealer and the repairer seconds after an accident. Companies like Google and Apple may move into vehicle production or fleet ownership. Declining collision rates will force repairers to move into new lines of business, including mechanical repair, glass and retrofitting/customization. For those repairers who have been at all reluctant to commit to training in the past, the future does
for repairers who have been reluctant to commit to training in the past, the future does look grim.
materials, new bonding techniques, electric and hybrid development, etc. As I said, the required improvements have been relatively minor so far, but they really ramp up over the coming decade. We’ve already seen that minor improvements have a dramatic impact on vehicle construction. The more stringent fuel requirements promise even more dramatic changes to modern cars and trucks. Now combine these trends with the arrival of the New Mobility—the combination of telemetry and connected vehicles, autonomous technologies, full scale electrification of cars and new approaches to vehicle ownership. We are now in the first phases of this New Mobility scenario—vehicle ownership among millennials is dropping while Uber and other ride sharing programs proliferate—active collision avoidance technologies are being installed in all new models—and vehicle connectedness is just around the corner. While the New Mobility brings technological challenges to vehicle repair, it will have a much more profound impact via “disintermediation” – the large-scale re-ordering of relations among repairers, suppliers, insurers, OEMs and vehicle owners. 18 collision Repair collisionrepairmag.com
look grim. The training imperative is growing to cover all staff, at much deeper and more expensive levels than seen so far. New commitments of time and money must be made to deal with technological changes. But, in the very near future, this training imperative will be amplified by the need to add new business lines and to deal with radically different customer relationships. As “the voice and the resource” for Canada’s automotive aftermarket, AIA has a responsibility to forecast upcoming business environments and to highlight solutions for the industry. Check out our latest publication, Disruptors in the Automotive Aftermarket, for a critical business forecast, and watch for a vastly increased emphasis on training as a key to meeting the future. Andrew Shepherd is the Executive Director of I-CAR Canada, a non-profit organization that provides collision repair training and ongoing education. He can be reached via e-mail at email@example.com
Point Blank With Piercey
am Piercey was a true original. As the co-owner of Budds’ Collision in Oakville, Ontario, Piercey was always willing to share his opinions and experience with other members of his industry, both in person and through his popular column in Collision
Repair magazine, Point Blank with Piercey. We are pleased to share some of Piercey’s most insightful columns in this space in
support of the Sam Piercey Foundation, which awards bursaries to outstanding students in autobody and car painting. Donations and commitments can be made online by visiting theocf.org and clicking DONATE NOW. This will take you directly to Canada Helps, a secure payment platform for online donations. In the Fund drop-down menu, choose Sam Piercey Foundation (a fund established by Budds’ Group of Companies). Alternatively, donations may be directed to Sam Piercey Foundation, c/o Budds’ Group, 2454 South Service Rd West, Oakville, Ontario, L6L 5M9.
They’re gone, but the rates hang around
By Sam Piercey
Sam Piercey was the co-owner of Budds’ Collision Services in Oakville, Ontario. He passed away on July 24, 2016, as a result of complications arising due to leukemia.
ell, the year is already three quarters of the way through while I write this (September 2015 - Ed.), so I’m not expecting anything big to change in between now and January 1, 2016. Now is as good a time as any to take a look at what we don’t get, and just as important, who exactly doesn’t get it. That’s the big money question. We haven’t seen a lot of new education programs come down the pike that will help us fill the labour hole that we’ve had for ... is it forever? Yeah, it’s forever. It seems obvious to me that we need new incentives, and maybe a new way to structure apprenticeships, if we want a lot of students approaching our doors and wanting to be a part of our industry. There has been no increase in any of the programs that would allow us to pay our people more money. “Hey kids! Go to school and put in the time, effort and money to learn technical skills! We’ll reward you with a lifetime of continuous training and hard work!” Money, not so much. When you look at it that way, why wouldn’t a young person just pick a different trade? They might love cars and bodywork, but they could get a job as a tool and die maker and work on cars on the weekends at home. They’d probably enjoy it just as much and have more cash on hand to indulge that hobby. It’s not just our techs that could use a cash bump. Those of us on the ownership side know that we
need more money too. This isn’t about putting more money in our pockets (although that would be nice too), it’s about putting more money into our collision repair facilities. We’ve always had to improve our equipment on a fairly regular basis or risk falling way behind, but this seems even more important than before, and the equipment is even more expensive. The equipment guys aren’t gouging. I’m sure they’re selling it to us for as little as they can. Research and development, testing, manufacturing ... all of these cost money and they’ve got to make enough to pay back the investment or go out of business. It’s exactly the same with us. Frankly, as an industry, we need some help in making sure we can make these investments. This can come either from our insurance partners or government programs designed to keep industry moving. Or it could be a combination of both. We’ve seen more and more shops close down over the last few years. I don’t think we’ve hit the bottom yet. Sure, the industry was overcapacity. Is it still overcapacity? Or are otherwise good shops being forced to shut because they can’t afford new equipment? It’s hard to tell, and I worry that we’ll reduce capacity to the point where we won’t have enough to satisfy our customers. The business has changed. Equipment has changed. Standards have changed. Why is it our rates are the same as way back then?
December 2017 collision Repair 19
Profiles of Success
Don Morton, seen here in front of the estimating bays, which are the first things customer see when pulling up to Don-Mor CARSTAR. Estimating bays have a canopy covering them, providing shelter from the elements. Located close by is a hoist allowing the estimators to not only show the customers a better scope of the work needed on their vehicles. It also allows the estimators to write a more complete estimate.
Mission: Possible Don Morton of Don-Mor CARSTAR has always followed a strong mission statement: never stop the progress By Mike Davey
ome people say you can’t stand still, and the only real options are moving ahead or falling behind. Don Morton and his team at DonMor CARSTAR clearly prefer the former. It might be accurate to say that Morton has never stopped building. In fact, the facility broke ground in early November of 2017 to install two new top-of-the line spray booths from Global Finishing Solutions. This is just the latest in a series of expansions and additions for the facility. The journey of constant advancement led to the implementation of 5S in 2015, in step with new departmental processes from vehicle arrival to departure. Financial plans were put in place, and key performance indi-
cators (KPIs) established, with departmental incentives based on those KPIs. Monthly meetings were established to make sure the new processes were rolling out the right way. It seems the planning and attention to detail has paid off. Don-Mor CARSTAR has seen double digit growth in both 2015 and 2016. Morton acknowledges the help of people from both inside and outside the business in achieving these goals. “I’d like to give special thanks to Enzo DiLoreto of BASF and private consultant Ken McAfee for all their help in getting our newer processes put in place,” says Morton. “Their advice was instrumental in helping us to make a smooth transition to a more efficient way of doing business.” December 2017 collision Repair 21
Profiles of Success
Don-Mor CARSTAR holds OEM certifications for KIA, FCA and Ford Aluminum through Certified Collision Care and is currently working on other OEM certifications. The facility also holds CCIAP accreditation through AIA Canada, and recently requalified as an I-CAR Gold Class facility under the new program. The current facility is located at 1056 Brydges St. in London, Ontario. The DonMor CARSTAR you see today occupies a total of 3.2 acres, including compounds. It’s very different from the way it looked when Morton first took possession. The differences are even more obvious when you compare it to Morton’s first shop. “It was a tiny cinderblock building with a cement spraybooth,” Morton recalls. “It was originally going to just be a paint shop, but it turned out that wasn’t terribly profitable without collision. I hired a bodyman and we started doing overflow work for the bodyshop next door.” That building saw the company through its first eight years. Morton always wanted to expand, and eventually he got his opportunity. “My neighbour needed to expand, and he bought the building,” he says. “That’s when I learned something crucial: always buy the building.” The next home for the facility was a 3,000 sq. ft. shop that Morton purchased and then
James Tomlinson and Beth Bateman at the CARSTAR Express location.
immediately expanded to 4,000 sq. ft. After the expansion, there were seven stalls and a new office. The desire to expand further was still there, but this particular shop was, as Morton puts it, “landlocked.” There was simply nowhere to expand to directly, so clearly a separate building was needed. Morton found a suitable location that would allow for future expansion. The location would turn out to be even better than he had originally realized. “Two days before we closed the deal, they announced they were putting in a new Police Reporting Centre across the road. I think it was actually the first outside the Greater
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Toronto Area,” says Morton. Just think about it. People who have just reported their collision to the police and contacted their insurance company walk out of the doors of the Police Reporting Centre. The very first thing they see is a well-maintained and clean bodyshop with its own Discount rental kiosk. “From there, they can pick any shop in the city. A lot of the time they picked us,” Morton says. The original plan was to keep the original facility and use it for load leveling purposes. The team tried it, but it wasn’t entirely successful. Train tracks ran between the two shops,
Profiles of Success
The staff gather for one of the four daily production meetings. Staff at the aluminum shop and the CARSTAR Express location attend via Skype.
and often the flatbed carrying damaged or repaired vehicles would be delayed significantly while trains went by. After a year or two, Morton decided to sell the original building and concentrate efforts on the larger location. He bought another half-acre attached to the property and expanded the building. One of the first items of equipment was a new downdraft booth, a DeVilbiss RXD. The environmental movement was taking off among the general public at the time, and Morton decided to switch to waterborne coatings. This was long before their use was mandated by government regulations. “We were definitely ahead of our time, but it didn’t last. We were using a product from ICI, but about six months after we started, the UK started mandating waterborne coatings for their industry and we just couldn’t get the supply anymore,” he says. Nevertheless, the business continued to advance wherever possible. Many collision repair operations are now looking at the mechanical side of the business, and numerous facilities have added at least one mechanical bay. Don-Mor CARSTAR, however, has been offering mechanical services for over 10 years. “You could see that the industry was trending that way,” says Morton. “Your key performance indicators and keys-to-keys time are often impacted by mechanical sublets that you have no real control over. Before
“It was originally going to just be a paint shop, but it turned out that wasn’t terribly profitable without collision.” - Don Morton we started offering mechanical services, our wheel alignment sublets alone were going to three independent mechanical shops. Then there was the nightmare of Friday afternoons.” Dave Sutherland says Morton isn’t exaggerating when he calls it a nightmare. Sutherland is Don-Mor CARSTAR’s Production Manager. His recollections of what it was like in those days are not fond ones. “It never went smoothly. No matter how much forward planning we did, we were always
at the mercy of other operations’ timelines and schedules. Today it’s much better,” he says. Sutherland has been with the company for almost as long as Morton himself. In fact, the two grew up together. Not only that, but two of Sutherland’s grown children work in the business today. “His daughter Diane is our Operations Manager. She came here out of high school, with straight A’s, and she’s worked in every department,” says Morton. “His son Dave is one of our best painters.” Don-Mor CARSTAR started life as DonMor Collision and added Don-Mor Automotive about 10 years ago with a staff of four mechanics. The shop joined the CARSTAR network in 2001. “We had been a CAA-recommended shop for years when CARSTAR came to Canada, so I already knew the power of having a national brand behind you,” Morton says. “Customers find it reassuring to know that you have that backing. At the time, CARSTAR was also starting to get more market share from insurers. There were already two CARSTAR stores in the area and the network wanted us to complement what they were offering and provide complete coverage across the city.” It sounds simpler than it was. The discussions between Morton and CARSTAR lasted about two years before the new sign finally went up outside the building. Today, December 2017 collision Repair 23
Profiles of Success
four CARSTAR locations serve London. Two corners of the city are served by stores owned by another CARSTAR franchisee, who Morton works with well. Don-Mor CARSTAR serves a third corner. The fourth corner was filled in just four years ago, when Morton opened a CARSTAR Express location. A fleet of flatbeds move vehicles between the Express store and Don-Mor CARSTAR. The fleet also allows the company to serve the community’s towing needs. “A lot of efficiencies come into play when you’ve got an Express location,” he says. “We have an estimating bay and a drive-on hoist. We take the bumpers off and we can usually get an estimate done in about 30 to 40 minutes. It’s not just convenient for customers. It saves time at the main shop.” Repair quality control takes place at DonMor CARSTAR, with final clean-up for delivery to the customer taking place at the CARSTAR Express. The Express location has four bays and has recently added a body tech, Chris Cunless, who performs disassemblies for more accurate estimates, and Mike Woolley, a professional detailer. We mentioned that Don-Mor CARSTAR just keeps expanding. One of the more recent additions was a dedicated aluminum shop, completely separate from the main facility. Forget curtains or a separate room. It’s literally across a driveway in its own building. However, curtains are already installed in the aluminum shop. If it becomes necessary to work on steel in one stall, it can be done without risk of contamination and galvanic corrosion. The aluminum shop is linked to the main shop by computer. So is the CARSTAR Express location. This is necessary to maintain efficiency, communications and just as important, team spirit. “We hold four production meetings a day, at 8, 10, 1 and 3. The CARSTAR Express staff attend via Skype,” says Morton. The meetings are quick, only about 10 minutes or so, but they help to ensure that production keeps flowing and everything stays on track. When problems do crop up, the frequent meetings help to make sure they’re dealt with as quickly as possible. We haven’t even touched on the stateof-the-art equipment installed at Don-Mor CARSTAR, like the two silicon bronze/aluminum capable welders to complement the shop’s existing welding rigs, the six vehicle lifts or the dozens of parts carts that help to ensure parts are stored properly and ready for use. Suffice it to say, the entire operation puts a big emphasis on having the right technology. Morton is always on the lookout for new equipment that will help the staff perform repairers better and faster. “I just
Diane Sutherland, the facility’s Operations Manager. After clearing the estimating bay, the well-appointed waiting room is a customer’s next stop.
You can’t really tell the story of Don-Mor CARSTAR without Dave Sutherland. The facility’s Production Manager, Sutherland’s been with the company for over 35 years and has two adult children working in the business.
“We hold four production meetings a day, at 8, 10, 1 and 3. The CARSTAR Express staff attend via Skype.” - Don Morton bought a full PDR system down at SEMA,” he says. “It will help us to expedite repairs.” In addition to the production area and office space, the facility has a dedicated training room with space for up to 40 students and three parking compounds. Two are secured, with cameras and motion
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sensors. The second compound is employee parking and for storing total loss vehicles. The third is really just there for catastrophes. If a hail storm hits the London-area, DonMor CARSTAR is ready to host a team of dent techs. We’ll close in the most backward way possible, by taking a look at the very first part of the facility a customer sees. There’s a large covered area near the front of DonMor CARSTAR where estimates can be performed. It’s dry and sheltered from the wind, a definite benefit for both customers and estimators. It’s also got its own hoist. “A lot of customers are coming here straight from the Police Reporting Centre, and we all know that collision repair is a grudge purchase at the best of times,” says Morton. “When they get here, we can hoist the car and show them exactly where the damage is and explain how we’re going to do the repair. It helps to give them peace of mind and confidence that we can get the job done.” For more information, please visit their website at donmorcarstar.com.
Top Talent Joseph McDougall of Axalta on how to get the best people in a competitive marketplace
oseph McDougall is Senior Vice President and President of Axalta’s global refinish segment and is also responsible for Global Branding, Corporate Affairs and Sustainability. He joined Axalta in 2013 as Senior Vice President and Chief Human Resources and was appointed to his current role in September 2017. Before joining Axalta, McDougall was Vice President, Human Resources, Communications and Six Sigma for Honeywell Performance Materials and Technologies.
Collision Repair magazine: What would you say is the biggest challenge facing collision repairers today? What would you recommend to shop owners who are dealing with that? Joseph McDougall: Vehicle complexity derived from new technology in braking systems, sensors, back-up cameras, as well as challenging vehicle compositions which include high-strength steel, carbon fibre and aluminum, is resulting in a shortage of qualified technicians skilled on new repair methods. The best way to overcome these challenges is to seek and invest in training for technicians and invest in the necessary equipment for repairing vehicles that contain new technology. For this reason, Axalta has hosted
Executive Vision focuses on discussions with key players in the auto claims economy. If you would like to know what’s going on in the mind of a specific individual involved in the collision repair industry, please email editor@ collisionrepairmag.com.
continuous education training and seminars for refinish and repair professionals and we are always looking for ways to help our customers hone their skills and familiarize themselves with new products and technology. We have nearly 50 world-class customer learning and development facilities around the world that support our customers. I recommend that shop owners take advantage of training opportunities for themselves and their employees. And if time away from the shop is a concern, eLearning courses are a great alternative to visiting a training facility. We also provide coating solutions and application tools to our customers that are designed to work well with evolving car compositions. Carbon fibre, for example, is extremely lightweight, but it is porous and requires the right type of coating to achieve a smooth finish. CRM: What are three steps shops can take to ensure longevity? JM: A major step is to use technologies that are designed to increase productivity in the repair and refinish process. Axalta offers products that dry fast and do not require as many coats as traditional paints when applied to properly prepared surfaces. This
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helps increase shops’ overall efficiency by eliminating steps in the process. We also provide our customers with colour matching tools and software that help technicians find the right colour match quickly. This not only reduces product waste, but a correct colour match early on saves time and helps to move cars through the shop. Shops that maintain an awareness of changes in the market may also be able to adapt to evolving vehicle compositions. As I mentioned earlier, it’s important for shops to familiarize themselves with new materials and understand which products are evolving to accommodate them. There are various ways to learn about market trends and changes, from publications like this to industry trade shows, and training courses. Reacting to changing trends is inevitable, but longevity in the industry also requires being proactive and prepared to stay ahead of trends. Another essential key to long-term success is to focus on customers. This has been our number one company value and I think that shops who also keep customers first will stay in business for the long-term. This requires not only providing great service when a customer requires assistance, but anticipating the needs of customers before they come up.
CRM: Axalta hosts a Corporate Social Responsibility Summit. What’s involved and why is it important? JM: We held our first Axalta CSR Summit in 2016 and it quickly has become one of the pinnacles of our Corporate Social Responsibility program. We found that there are a lot of organizations who want to do good in the community and are seeking ways for their programs to be more effective. By bringing together customers and business partners in the same room, we can collectively work on best practices for thought leadership and action leadership that will benefit everyone involved. We’ve been able to talk about best practices for sustainability, employee volunteer programs, and creating STEM education curriculum for students. It’s an amazing program for networking and collaboration. As a technology-driven company, STEM and sustainability initiatives comprise our focused giving, so the event has an emphasis on these topics. It’s exciting to be part of a connected network of organizations that want to help our communities and we are confident that we can make an impact, not only through financial support, but by facilitating collaboration between other organizations with similar goals. That’s why this event is so important to us. CRM: What do you think will be the biggest changes to impact the repair community over the next few years? JM: As technology continues to change, this will present challenges as well as opportunities for growth. Advances in automated driving, from sensors, radars, and other safety features that help to reduce auto accidents, will affect the refinish market. Research on “self-healing” paints and other exciting repair products will result in developments that further productivity in the industry. In addition, the growing demand for sustainable coating solutions that meet government regulations of VOCs and harmful emissions may increase shops’ conversion to waterborne coating solutions in the US.
What can you offer to potential employees that other shops may not be able to offer? How are you different? If you want to attract skilled technicians, you should think about what they are looking for in an employer and why they would choose to work for you instead of another shop. You should also think about marketing yourself in a way that helps you to stand out. Find a unique way to get your name out there, so that you are top-of-mind for skilled candidates. CRM: What does the future hold for Axalta?
superior colour match, aesthetics and quality. As part of a global team, our technologists tailor these formulations to meet customer-specific, local application and performance needs. In addition to new product development, we plan to globalize products that have served customers well in one region, but offer benefits that meet the needs of customers in other parts of the world. Ultimately, as our coatings improve customer productivity, meet environmental sustainability initiatives, and meet the needs of the ever changing refinish market, Axalta will also grow and succeed.
JM: We have a bright future ahead. We will continue to focus on new product development, enhancing existing products, and providing exceptional service and support to our customers. We have already made significant investments in global technology centres to help accomplish this (the Americas Technology Center in Mt. Clemens, Michigan and the Asia Pacific Technology Center in Shanghai both opened this summer). We are now in the process of building our Global Innovation Center in Philadelphia. With its grand opening next fall, this 175,000 sq. ft. facility will be home to Axalta’s global research, product development, and technology initiatives. These technology centres are designed to enable our customers’ long-term success through onsite education and training, as well as development of special paint formulations to ensure
CRM: You’ve got deep experience in human resources. Many repairers struggle with human resource issues, especially finding skilled technicians. What advice do you have for them? JM: When you are competing for the best talent, the real key is to consider how you differentiate yourself from your competitors. December 2017 collision Repair 27
Survey shows that Canadians are a little shaky on how to avoid wildlife collisions Animal collisions can happen all year round, although winter brings forth treacherous conditions that can make things worse.
By Tom davis
nimal collisions are a year-round issue. Though the treacherous roads of the winter months can leave drivers more at risk of a collision with a large animal, such as a deer. It is important to know what to do when faced with an incoming animal collision and according to a new research from State Farm, one in three drivers in Canada do not feel confident that they would know how to avoid a wildlife collision. The survey, which polled more than 3,000 respondents of driving age across the country, found over 80 percent of drivers believe that better public education about how to react to wildlife on the road is needed to prevent collisions that could lead to injuries and fatalities. According to the survey, when seeing a deer in the middle of a two-lane highway, Canadian drivers are most likely to brake (66 percent) or take their foot off the gas (55 percent). More than one-third indicated they would honk their horn and one-quarter said they would swerve. “The unpredictability of these situations, combined with human impulses to try to preserve the lives of these animals makes these situations difficult and dangerous,” said John Bordignon, Media Relations at State Farm Canada. According to police and road safety experts, swerving is not the best strategy when approaching wildlife on the road. Instead, they advise
drivers to maintain their line, even if it’s toward the animal, and firmly apply the brakes. Swerving could send you into the path of an oncoming vehicle or cause you to lose control of your car. Canadians want and need more education on how to deal with wildlife on our roads, according to the survey. The most likely time to encounter wildlife is at dusk or dawn, in October and November, on two-lane rural highways with speeds of 80 km/h or more. From an insurance perspective the average auto damage claim after hitting an animal is $4,500. Shane Campbell, owner of CSN City Centre in North Bay, told Collision Repair magazine that wildlife collisions represent an average of 30% of the shop’s yearly claims. “There is now a fence along highway 11, so we have seen a slight decline in the number of wildlife collisions recently, the percentage was much higher in previous years,” said Shane. “A collision with a deer can cost anything from $6,000 and up, while a collision with a moose or a bear and you could be looking at anything from $20,000 or more.” These are costly repairs, and the repercussions can be devastating for both vehicle and driver. Icy roads are dangerous on their own and conditions can be quite harsh as the winter progresses. From all of us at Collision Repair magazine, please be safe and remember to educate yourselves and your customers on the guidelines to avoid wildlife collisions. december 2017 collision Repair 31
Canada UP Catching BlackBerry hits the streets and Stratford, Ontario becomes a self-driving hub By Jeff Sanford
[TOP] Observers crowd around a BlackBerry QNX-equipped selfdriving Lincoln MKZ after the successful conclusion of a test run on Ottawa’s streets. The vehicle carried Ottawa Mayor Jim Watson, city councilor Marianne Wilkinson and John Wall, General Manager of BlackBerry QNX on its maiden voyage.
he fortunes of Canadian tech company BlackBerry are on the rise again. The brightest spot at the firm right now is the QNX division. It makes key parts of the digital systems of many modern cars, and the autonomous vehicle (AV) market is likely going to be a big part of the business plan. The biggest news from BlackBerry QNX recently is the inaugural ride of a BlackBerry QNX-equipped self-driving Lincoln MKZ in Ottawa. The trip was billed as the first on-street test of an autonomous vehicle in Canada. An AV was tested around the University of Toronto recently, by the way, so there may be a challenge to that claim. The grey Lincoln pulled away from the curb with Ottawa Mayor Jim Watson, councilor Marianne Wilkinson and John Wall, General Manager of BlackBerry QNX, as a way of kicking off the company’s on-road testing program.
“Today is the first public fruits of what we’ve been doing,” said Wall at the event. Although the street was closed to the public, the demonstration attracted many observers. Once testing is fully underway the AVs will be operating on city streets with real traffic and pedestrians. The test loop around the suburban technology park where BlackBerry QNX makes its headquarters has been upgraded with traffic lights equipped with transmitters that communicate with the car. Street lines have been repainted and new LED street lights installed. BlackBerry QNX will focus on designing software for AVs, while other companies will work on creating hardware. According to Wall, “In a lot of cases, the OEMs want to own that, so the Fords of this world, the Mercedes of this world, that’s their secret sauce, they’re going to build the brain. We’re going to provide all the infrastructure, the security, the safety, the redundancy, the communication, how the signals come in.” December 2017 collision Repair 33
Transport Minister Marc Garneau boards a TransDev automated bus for a demonstration on Parliament Hill in late September. Garneau says Canada is “running hard” to keep up with the regulatory framework needed for the technology.
The Ontario government has already dedicated a demonstration test zone in Stratford. It’s part of the province’s plan to create an “Autonomous Vehicle Innovation Network.” Funding is being provided to the tune of $80 million over five years. The city of a little over 30,000 people is already emerging as a focal point of the AV industry in Canada. Stratford also has a University of Waterloo digital media site, a startup accelerator and an autonomous
vehicle facility owned by semiconductor company Renesas. Over the next year or two, we can expect to see researchers testing cars donated by manufacturers on a closed track before they hit the city’s streets. It’s also important to note that the scientist who trained many of those working in AI research at Apple and Facebook is Canadian, a University of Toronto professor named Geoffrey Hinton. His work is so influential he is sometimes called
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“the Godfather of Deep Learning.” He’s a pioneer in developing neural networks and teaching computers to learn like humans. Now he is working at the Vector Institute, a University of Toronto affiliated organization that is applying AI to finance, construction and health care. It’s because of the Vector Institute that Google and Uber have created AI labs in Toronto. The Institute was only willing to accept international funding if its investors set up shop in Canada.
It looks like Canada may be catching up on the self-driving front. It’s been widely suggested that Canada has lagged behind other countries, especially the US, in designating zones for autonomous vehicle testing and encouraging investment. The people at the top seem to be looking at them in the right way, at least. Canadian Transport Minister Marc Garneau is leading the AV efforts of the federal government. During a test run of an autonomous bus on Parliament Hill in September, he called AVs a, “disruptive technology with huge potential.” He also said the country is doing “its best” to keep up with the rapid pace of innovation in the sector. “From a regulatory point of view, we are running hard to keep up with this developing technology. It is absolutely critical that we do it … what we don’t want is to slow down this technological development, but at the same time, we have to make sure that our streets remain safe,” he said. Garneau wants to do this by expanding pilot projects beyond test facilities. “The provinces and the cities have to adapt to the fact that they are coming down the road,” he said during the test drive of the automated bus built by TransDev.
Sen. Dennis Dawson of Quebec was also present at the test. He remarked that Canada needs a, “... national regulatory framework to help all levels of government—municipal, provincial and federal—prepare for the future.” Whether or not the Canadian sector can keep up the recent pace remains to be seen. However, recent events have proved that that the talent to innovate, and the desire to do so, is well represented in our country.
Geoffrey Hinton, Chief Scientific Advisor for the University of Toronto affiliated Vector Institute. Sometimes called “the Godfather of Deep Learning,” Hinton and the Vector Institute are the primary reasons both Google and Uber have established AI labs in Canada.
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Flavio Battilana, COO of CSN Collision Centres, delivering the opening remarks at this year’s conference. Battilana outlined how CSN will continue to adapt to future innovation.
Guest speaker Max Valiquette delivered two presentations. The first focused on how to successfully innovate. The second looked at techniques to integrate millennials into the workforce.
ou have a choice. It’s your journey. We are ready for the future,” said Flavio Battilana, COO of CSN Collision Centres, at the conclusion of his opening remarks at the 2017 CSN Conference. Battilana’s remarks echoed the theme of this year’s conference, “Innovation: Navigate Your Future.” The event took place at the St. John’s Convention Centre in St. John’s, Newfoundland. During his opening remarks, Battilana discussed how CSN Collision Centres will navigate the future. Part of this is being a responsible part of the claims process and focusing on safety and security. “We have choices and we control our journey,” he said. “We have to stay true to the goal of CSN, and that’s to be innovative and prepared for the future.” Battilana highlighted how the network is developing a portal for repair information and outlined how shops will be certified in regards to equipment and training, tying this into the overall theme of innovation and preparation for the future. Next to the stage was special guest Leonard Brody to discuss what he calls the “Great Re-Write.” Brody pointed to how there has been a power shift away from top-down organization. “We are resetting the operating system of the Earth. Expectations are very different today and we need to learn to speak the same language,” he said. “We can see how the world is being rewritten around us.” Brody was followed by Larry French and Jay Hayward of CSN Collision Centres, presenting “The Larry & Jay Show: CSN in the Spotlight,” a look at the network’s marketing, branding and operation initiatives for the year ahead. The overall marketing plan may be best summed as increasing brand awareness on the consumer side. The branding initiatives include serving as the title sponsor for the next season of “Canada’s
CSN Collision Centres sets a course for the future at annual conference By Jeff Sanford
Worst Driver” on Discovery Channel, sponsoring the PGA’s President’s Cup and a number of TV spots on various channels. In short, you’re going to be seeing CSN Collision Centres appear frequently if you’re watching much television this fall. French and Hayward also discussed operational advances the network either already has in place, or is rolling out in the near future. CSN Collision Centres is partnering with Mike Gilliland and his company AutoHouse Technologies to bring the benefits of business intelligence to the network. In brief, the AutoHouse Technologies system takes all of the data that comes from the shops’ individual management systems, regardless of brand, and puts all into one central system where it can be accessed. “All of the shops in the CSN network will have real-time data at their fingertips,” said French. “They’ll be able to use it to improve their operations and efficiency. Having the data will help us set benchmarks and see who’s performing above that level.” According to French, it will allow shops to see how they rank by region and by province. Providing a sense of the current landscape, and how they rank within it, will allow them to improve areas where they may currently be weak. december 2017 collision Repair 37
Raj and Shelley Kavia of CSN Kavia Auto Body.
Gloria Mann of Collision Repair magazine, Sharon Wells of CSN Collision Clinic and Dana Alexander of CSN Dana’s Collision.
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CSN Collision Centres has also announced a new quality control team headed by Douglas White. White’s team will be in charge of helping shops ensure repairs being performed are of the highest possible quality. After a brief break for lunch, attendees returned for special guest Hod Lipson, Professor of Engineering and Data Science at Columbia University. Lipson, of course, looked at autonomous vehicles and increasing automation, leading directly into the panel discussion on autonomous vehicles. Moderated by Douglas White of CSN Collision Centres, panelists included Lipson, Lorenzo D’Alessandro of CSN 427 Auto Collision and CSN Avenue Collision and George Kozyrakis, Manager of Enterprise Rent-A-Car’s car sharing initiative. White led the panel by asking specific questions geared towards the individual’s area of expertise. Lipson, as you might expect, monitors the situation regarding autonomous vehicles closely. He believes we’ll have AVs within a decade, but that current legislation still needs to catch up. “Legislation is essentially unknown right now,” he says. “Canada is allowing ‘testing’ as long as there is a human being behind the wheel, but the question is, what qualifies as testing?” D’Alessandro focused on the OEM certification aspect and the large advances in technology we’ve seen in the last few years. “We could see years back that the vehicle was getting more complex, and that certification would be a big part of the equation,” he says. “We were early adopters of OEM certification as we could see it would be required in the future. Soon, we may be at a point where repairing a car is more like repairing an aircraft.” Max Valiquette was next to the stage, presenting the first of two sessions. An innovation and trends expert, Valiquette’s presentation was called “Dangerous Innovation.”
Valiquette has four key points for successful innovation. First, you must define the value for your organization. Second, identify the leaders and innovators within your organization and empower them to make the needed changes. Third, you must move quickly and set up your groups to do the same. Fourth, collaboration should be constant, but needs to be built for innovation. The next day of the conference led off with another presentation from Valiquette. His keynote focused on practical tips for understanding the new generation, the millennials, and how to effectively integrate them into your shop’s culture. Valiquette also served as the moderator for the following panel discussion on millennials in the collision repair industry. The panelists were Jessica D’Alessandro of CSN 427, Shawn Stenson of CSN Kingston, Colton Jones of CSN Jones and Alana Ramsay of CSN The Coachworks. During the panel discussion, it was noted that many of the traditional drivers for settling down are occurring later than ever before. Millennials are getting married later and having children later in life. This means they expect more flexibility than members of previous generations might have. After the discussion panel, conference attendees moved onto a number of breakout sessions on various topics. Brigitte Pesant of AIA Canada led the session on AIA’s CCIAP shop accreditation program. Further sessions on Economical Insurance and Northbridge Insurance were led by Joe Carvalho and Gary Nagle respectively. The final day of the conference concluded with a special members outing. Called Rally in the Alley on George Street, the event featured a fish and chip dinner and a pub crawl, before concluding at The Martini Bar with live music. In addition to the booked band, Ed Robertson of the Barenaked Ladies made a special appearance. For more information, please visit csninc.ca.
Rob Rukavina of PPG, Emma and Albert Hutten of CSN Blue Mountain.
Tim Nickerson and Adam Wentzell of CSN County.
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RED HOT SEMA Collision Repair experts gather in the heat of the desert air
The Counts Kustoms team with Gloria Mann of Collision Repair magazine.
Anthony Iaboni of Spanesi.
SEMA is a week to remember, with a year’s worth of excitement, learning and networking rolled up into just a few days.
By Tom Davis
his year’s SEMA Show successfully wrapped up in Las Vegas, Nevada, bringing together more than 70,000 industry stakeholders from every corner of the world. SEMA was colourful to say the least, buzzing with snazzy cars old and new, educational seminars on everything from the latest technology to business management, networking events and demonstrations of some of the most innovative products to date. Everyone attending, even long-time SEMA regulars, explored the show starry eyed and ready to make the most of the unexpected and
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unbelievable event that is SEMA. Collision Repair magazine was on the scene, ready to reunite with some old friends as well as make new ones. Regular SEMA Show attendees know that custom cars are one of the show’s biggest highlights, with eye-catching vehicles parked everywhere they look. Many major designers had a new build to showcase, and SEMA is the perfect event to roll out the big guns. “The quality of the show is incredible. From my point of view, it’s the incredible builds that really stand out. The Ringbrothers had
Anouar Bélganche of Saint-Gobain Abrasives, Philip Heuckroth of Axalta Coating Systems and Dustin King of Saint-Gobain Abrasives during AIA’s Canada Night.
Kent Von Behren of Medallion Refinish and Zubair “Zuby” Siddiqui of Crescent Industries.
Andrea Lopez and Pauline Perenack of Mitchell.
The PPG ‘Ghost Car’ was only one of the many custom wonders to be seen on the show floor.
The heavily customized DIVCO truck by House of Kolor.
some great builds at the BASF booth, and Foose had a Mustang at BASF that was just over-the-top perfection. The really amazing thing is that you’ll walk 10 feet and you’ll see another build that’s of the same quality,” said Mike Kaplaniak of UniParts OEM Canada. The custom builds are, of course, one of the show’s biggest draws every year, although many stakeholders also come for the new products. An astounding nearly 3,000 newly introduced tools and other pieces of equipment were showcased during the exhibition. There was something for everyone, indeed. “I checked out a lot of new products,” said Morton. “We’re well up-to-speed, but
we still managed to find some new and updated tools. It’s also a great chance to talk to different suppliers and get their take on the new stuff coming out.” SEMA 2017 officially kicked off with the highly anticipated Best New Product Award breakfast at the Westgate hotel. Nearly 3,000 products were entered across 16 different categories for the ceremony, which recognizes outstanding achievements in the development of products being introduced to the market. Among some of the winners were ALLDATA Collision Advantage, which won first place for the Collision Repair and Refinish category, and EZ Pulley, which won first place in the Tools and Equipment category.
Ronald Peters and Isobel Peters of Island Clean Air.
Lauren Laney and Jim Krolak of KBS Coatings.
December 2017 collision Repair 41
Canada Night was of particular interest for Canadian stakeholders. The annual event, held by AIA Canada, offered Canadian repairers the opportunity to connect with suppliers, vendors and other industry peers. More than 1,000 people from across the industry attended the event, which also helped raise money for the High Fives for Kids Foundation. The night was the perfect time for Canadians to meet new people, and reconnect with long-time friends. That, along with Halloween costumes that were (almost) as gorgeous as SEMA’s famous customs, and Canadian booze made it a night Canadians will remember for a long time. Spread across the show’s busy schedule were many sessions and discussions, which offered shop owners the chance to catch up on current innovations and other relevant business topics to help them run a successful business. Of particular interest for collision repairers was the Society of Collision Repair Specialists’ Repairer Driven Education Series. The seminars included presentations such as Tom Shay’s ‘War on Business’ and Ken Boylan’s talk on cutting edge technologies. Todd Tracy, the lawyer for the plaintiffs in the recent $42 million John Eagle Collision case, advised repairers on avoiding a similar case in their own shops. Continued on page 45
42 collision Repair collisionrepairmag.com
Kurt Lammon of Polyvance.
Kristine Muscedere and Amjad Farah of AkzoNobel.
Yves Roy, Emmanuel Gyebi and Daryll O’Keefe of Fix Auto Canada.
Jean-Paul Sauriol of ALLDATA.
Garry Galarneau, Nicolas Flibotte, Adam Fulton, Jonathan Adam, Mark Livingston, Jason Muzyka and Mark Huisman of BASF.
Dave Swenson of Carlson Body Shop Supply and Craig Robatzek of House of Kolor.
Tony Canade of Assured Automotive and Darryl Simmons of Collision Repair magazine.
Bob Leibel and Greg Eisenhardt of Sherwin-Williams Automotive Finishes.
Derek Sproston and John Martinolich of Wedge Clamp Systems with Emile Fremont of Color Compass Corporation.
John Brill of Steck Manufacturing.
Chris Springer and John Turner from SATA
Robert Dussault and Rebecca Dube of Rousseau Metal.
December 2017â€‚ collision Repairâ€ƒ 43
The Fix Auto World team.
Pino Chiappetta of CHC Wholesale, Gloria Mann of Collision Repair magazine and Darrin Heise of PBE Distributors during AIA’s Canada Night.
Timothy Morgan and Anthony Iaboni of Spanesi.
Art Ewing of ProSpot.
Desmond Chan of Fix Auto World, Darryl Simmons of Collision Repair magazine with Frank Liu of Fix Auto China.
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Jennie Lenk and Bastien Dias Da Costa of Celette.
John Gates and Troy Robins of Tsunami Compress Air Solutions with Derek Naidoo of NitroHeat.
Michel Caron of DST, with Stuart Klein and Reg See of Fix Auto Canada.
SEMA wrapped up with its official after party, SEMA Ignited. The closing of the show is the epitome of SEMA’s exciting and energetic atmosphere. The event featured Mobil 1’s Red Bull Racing experience with Formula 1 driver Max Verstappen along with drifting demonstrations, entertainment, food, as well as the display of hundreds of vehicles from the SEMA Show. With a plethora of custom cars on display throughout the week, consumers, visitors and exhibitors alike were all eager to watch the SEMA Cruise. The cruise sees all of the custom cars that have been on display throughout the show, paraded down the Vegas Strip before finally reaching SEMA Ignited. SEMA is a week to remember, with a year’s worth of excitement, learning and networking rolled up into just a few days. Thank goodness we have nearly a year to recover from the annual event, before the anticipation starts building up, and we get to do it all over again. For more coverage of the 2017 SEMA Show, including complete coverage of the Battle of the Builders as well as some of the best new products, please visit collisionrepairmag.com.
Darryl Simmons of Collision Repair magazine with Craig Jalbert of 3M Canada during AIA’s Canada Night.
Eric Leveillé of NAPA/CMAX with Gloria Mann of Collision Repair magazine.
Erin McLaughlin and Mike Cameron of Collision Repair magazine with Mike Kaplaniak of Uniparts OEM Canada.
Patrick Stenson of Kingston Collision-CSN and Alex Dugas of Collision Repair magazine.
December 2017 collision Repair 45
Warren Buffett may be eyeing Axalta, according to reports BY JEFF SANDFORD
tocks continue to hit record highs. The high valuations have some analysts wondering if markets are at some kind of peak, with an inevitable valley waiting ahead. The CEO of major investment firm BlackRock, Larry Fink, spoke at a conference in October and said financial markets are ignoring underlying risks. Fink went on to compare current markets to 2007, when he says there was a similar amount of risk in the system and stock valuations were relatively high. The Great Recession rolled in the very next year. Keep your eyes on Collision Repair magazine’s financial reports over the next few months for more on this.
Analysts from Citi Research have mused that Axalta may be a takeover target, possibly by Warren Buffett’s Berkshire Hathaway. Buffett already owns 9.6 percent of the outstanding shares of Axalta.
Axalta Coating Systems updated its third quarter and 2017 full year financial guidance. According to a press release, several factors have combined to temper the outlook on earnings over the rest of the year. The factors include the impact of recent natural disasters, shifts in the amount of working capital left with distributors and a projected widening of the gap between raw material input costs and customer price increases. The company now expects third quarter earnings to be in a range of $205 to $215 million, while full year earnings should come in around $870
GPC (NAPA) Genuine Parts Company (GPC) has announced it will buy European parts distributor, Alliance Automotive Group (AAG). The company also distributes tools and workshop equipment. GPC will acquire AAG from the current owners, a pair of private equity funds managed by Blackstone and the co-founders of AAG. The acquisition is valued at a total purchase price of approximately USD $2 billion, including repayment of AAG’s outstanding debt upon deal close. The transaction has been approved by the board of directors of GPC and is expected to close in the fourth quarter of 2017, subject to closing conditions and regulatory approval. AAG is the second
Paul Donahue, CEO of Genuine Parts Company, hosted a conference call recently to discuss the company’s acquisition of Alliance Automotive Group.
largest parts distribution platform in Europe, with a focus on light vehicle and commercial vehicle replacement parts. President and CEO, Paul Donahue, hosted
to $900 million. As well, net sales for the third quarter of 2017 are expected to be between $1.08 and $1.10 billion, while full year net sales are expected to grow between 6 and 7 percent. One report distributed by Citi Research mused about the possibility of Axalta becoming a takeover target. One company mentioned that might be interested in Axalta was Warren Buffett’s Berkshire Hathaway. Buffett already owns 9.6 percent of the outstanding shares of Axalta. Axalta shares have sold off a bit over the last three months, declining by more than 5 percent to trade around $28.30 USD.
a conference call recently to discuss the deal. According to him, the plan to acquire AAG is an, “... important strategic acquisition for Genuine Parts Company.” AAG includes 1,800 company-owned and affiliated outlets across France, the UK and Germany. Annual billings are running at over $2 billion. The Ontario Teachers Pension Plan Board increased its stake in Genuine Parts Company by 13.1 percent during the 2nd quarter. The fund owned 89,320 shares of the specialty retailer’s stock and bought an additional 10,367 shares during the period. RBC Capital Markets recently increased its target price on GPC shares from $85.00 to $98.00. GPC shares have done well of late, rising 6 percent in a recent trading session. december 2017 collision Repair 49
Sherwin-Williams As the effects from various hurricanes and earthquakes pile up, Sherwin-Williams has announced it would have to cut guidance for sales and earnings estimates for the third quarter that ended September 30, 2017. The company said it has to update its numbers in light of the impact of Hurricanes Harvey, Irma and Maria on Sherwin-Williams’ operations in Texas, Florida, the Caribbean and neighboring areas, as well as two earthquakes in Mexico. According to a statement from the company, “... more than 600 stores were impacted by the
John Morikis, CEO of Sherwin-Williams, says the company should be able to recover some of the earnings shortfall due to ongoing sales momentum.
storms and 40 Caribbean locations are still closed.” As a result, the company now expects third-quarter revenue to be reduced by $50 million to $70 million, as lost sales days and the costs of cleaning up negatively affect earnings. The company also expects a $1.10 per share charge from costs stemming from its acquisition of Valspar. According to CEO John Morikis, “While we are still assessing the longer term impact of these tragic events on our business … the sales momentum we are seeing across most geographies—particularly in our company-operated stores in the unaffected regions of the US and Canada —should enable us to recover some of the third quarter earnings shortfall over the balance of the year.”
Kurt Bock, the CEO of BASF, recently discussed the ways in which the company has “pruned” its portfolio of businesses. Over the past several years the company has exited the polyolefin, fertilizer, styrene and gas trading businesses. Over that same time, the company has bulked up through mergers and acquisitions in other areas. In September the company announced it acquired a company called Solvay, which is in the polyamide (nylon) business. The €1.6 billion acquisition will close in the third quarter of 2018. The CEO is quoted in a report by ICIS as saying, “... for us it’s a very nice combination, essentially providing a fuller product portfolio for our customers industries, especially automotive.” BASF also announced it has successfully developed a “specialty polyamide that combines the chemical resistance of semi-crystalline polyamides with the high gloss and the depth of view of amorphous plastics.” Called Ultramid Deep Gloss, the company says it is particularly suitable for components in automobile interiors, which are high-gloss and resistant without the need for coating.
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Kurt Bock, CEO of BASF. Bock notes that BASF has exited a number of businesses recently, including polyolefin, fertilizer, styrene and gas trading.
Uni-Select Quebec-based distributor Uni-Select continues to expand. Last time around, the company had acquired UK company The Parts Alliance. The subsidiary consequently made an acquisition of its own, buying up all the outstanding shares of Blackburn Brakes Holding Limited. The company’s latest acquisition is closer to home. Uni-Select announced that its subsidiary retail operation, Bumper to Bumper, had acquired Edmonton, Alberta-based organization Dash Distributors. Dash is an independent distributor of automotive products. The company was previously a member of a non-affiliated buying group. According to a press release, Dash Distributors is one of the largest independent distributors of automotive products in Alberta, with 49 sales and service professionals active in four locations across the wider Edmonton area. Established in 1992, Dash Distributors provides products and services to a customer base that includes auto dealerships and independent garages. Brent Windom, President and COO
Brent Windom, President and COO of the Canadian Automotive Group for Uni-Select, commented on the recent acquisition of Dash Distributors, noting the company has a well-established track record of superior customer service.
of the Canadian Automotive Group for Uni-Select, was quoted as saying, “Dash has a well-established track record of superior customer service and product availability and we are very pleased to welcome them to Uni-Select.” This acquisition gives Uni-Select a total of 54 corporate stores under the Bumper to Bumper banner. Shares in Uni-Select are trading around CAD $27.00.
“Dash has a wellestablished track record and we are very pleased to welcome them to Uni-Select.” - Brent Windom
december 2017 collision Repair 51
Time to Celebrate! Collision Repair magazine celebrates this year’s outstanding shops
s the end of 2017 draws near, its time to celebrate Canada’s hardest working shops and workers. Collision Repair magazine is very proud to share this year’s industry awards for outstanding shops and workers. The next few pages will showcase some of the industry’s largest banners and the Canadian shops they’ve awarded over the course of the past year. These are shops that have distinguished themselves in terms of sales growth, customer service and cycle times to name just a few categories. You’ll also see the names of employees that have demonstrated superior performances throughout the year. Take a good look at this year’s winners and please join us in celebrating their exceptional performance as well as their continuing success!
December 2017 bodyworx professional
»» Awards Celebration
Salutes this Year’s Winners
Decade of Excellence Award
Customer Servcie Excellence Award Assured Ajax
Sales Excellence Award GAETAN BRAZEAU
PETER DANSO TOM WRIGHT JOSH STRONG ADAM YAGMINAS MICHAEL KIRK
Touch Time Excellence Award Assured Frank & Guy Bank
RON SVENDSEN ADRIAN GASPELL RONALD DOERING NILA KOTAK
Net Profit Excellence Award Assured Scarborugh Centre
GEORGE MANESIOTIS TONY MARTINS TONY ALBUQUERQUE DAVID DESOUZA SORASINH LUANGAMATH
Operational Excellence Award Assured Downtown
PRIDE PEACOCK GREG HAYES
Store of the Year Assured Mississauga North
Employee of the Year Sonia Nogueira
Collision Repair CollisionRepairmag.com
»» Awards Celebration
Salutes this Year’s Winners
Decade of Excellence Award
CSN Sales Growth Award CSN Stores under 8,000 Square Foot WINNER: CSN Elite (North Vancouver, BC) CSN Stores in the 8,001 to 12,000 Square Foot WINNER: CSN Penney (Vancouver, BC)
5 Year Members: CSN Brimell (Scarborough, ON) CSN Carlaw (Peterborough, ON) CSN Dundas Valley (Dundas, ON) CSN Eastgate (Hamilton, ON) CSN Reid Bros. (Arnprior, ON) CSN Reliable (Courtenay, BC) CSN Toner (Tracadie-Sheila, NB) CSN Ultra (Beresford, NB) CSN Unitech (Cornwall, ON) 10 Year Members: CSN Gaudet’s (Charlottetown, PEI) CSN High Street (Strathroy, ON) CSN Koughan (Donagh, PEI) CSN North’s (Kentville, NS)
CSN Shops 12,001 plus square foot WINNER: CSN Kavia (Saskatoon, SK)
The CSN Experience Awards Stores under 8,000 square foot WINNER: CSN Elite (North Vancouver, BC) CSN stores 12,001 plus Square Foot WINNER: CSN Turpin-Capital (Ottawa, ON) 8,001 to 12,000 Square Foot facilities. WINNER: CSN Dana’s (Fredericton, NB)
CSNdex Award Locations under 8,000 square foot WINNER: CSN Tilbury (Tilbury, ON) Stores in the 12,001 plus square foot WINNER: CSN Walkerton (Walkerton, ON) 8,001 to 12,000 Square Foot stores WINENR: CSN Tilbury (Tilbury, ON)
CSN Shop of the Year Nominees • CSN Cowichan (Duncan, BC)
• CSN Dana’s (Fredericton, NB)
• CSN Elite (North Vancouver, BC)
• CSN Lou’s (Calgary, AB)
• CSN Turpin-Capital (Ottawa, ON) WINNER: CSN Elite (North Vancouver, BC)
• CSN Kavia (Saskatoon, SK)
December 2017 bodyworx professional
»» Awards Celebration
Salutes this Year’s Winners
Cystic Fibrosis Ambassador Awards • CARSTAR Red Deer – Red Deer, AB • CARSTAR St. Clair – York, ON • CARSTAR Brampton – Brampton, ON • CARSTAR St. Catharines – St. Catharines, ON • CARSTAR Edmonton West – Edmonton, AB • CARSTAR Brantford – Brantford, ON • CARSTAR Kieswetter – Kitchener, ON • CARSTAR Lachute – Lachute, QC • CARSTAR Harriston – Harriston, ON • CARSTAR Saskatchewan – Winnipeg, MB • CARSTAR Mississauga 401 – Mississauga, ON
Marketer of the Year CARSTAR P.E.I.
EDGE Award for Outstanding Quality CARSTAR Brossard – Brossard, QC
2017 Top Cycle Time/LOR CARSTAR Hamilton Rymal – Hamliton, ON
Customer Experience/CSI CARSTAR Cambridge – Cambridge, ON
Community Champion Award France Choiniere, CARSTAR Arsenault Granby – Granby, QC
Ironman Award Mark Giles, CARSTAR Fergus – Fergus, ON
2017 President’s Club CARSTAR Miramichi - Atlantic Canada
CARSTAR Brossard - Quebec
CARSTAR Duncan - Western Canada
Darryl & Brian Hemstreet, CARSTAR Red Deer & Red Deer South - under $8 Million
CARSTAR Ancaster -- Ontario
Collision Repair CollisionRepairmag.com
Regional Event Dan Hogg, Chief Financial Officer, Fix Auto Canada; Steve Leal, President, Fix Auto World and Yves Roy, Quebec Regional Manager, Fix Auto Canada.
Hi Ho Silver! Fix Auto Celebrates its 25th anniversary in Quebec, where it all began By Alex Dugas
e all know the old saying: you only turn 25 once. In honour of this one-time anniversary, Fix Auto welcomed franchise strategic partners from across Québec to celebrate 25 years in business. The meeting saw over 260 people in attendance, including strategic partners, representatives from the national corporate team, suppliers, insurance partners along with special guests. Over the two-day event, delegates were given the opportunity to listen to informative presentations, connect with suppliers, participate in collaborative breakout sessions, mingle with their colleagues and celebrate Fix Auto’s 25-year journey. The event, held at the Delta in Québec City, which is located within a five-minute walk from iconic Old Québec, kicked off with Steve Leal, Fix Auto World President and CEO, reflecting on the journey so far and looking towards the future of Fix Auto. “I want to congratulate and thank all of our shop owners, suppliers and insurance partners for a very successful 25 years,” said Leal. “Building a great team and solid partnerships is critical to continue our growth path.”
Discussion panels included talks on recruitment and industry representation.
A discussion panel was also held, which included topics such as recruitment of new employees, generating interest in the trade and how the industry image is changing with new technology. Panellists included Vyolaine Dujmovic of Fix Auto Henri Bourassa. Dujmovic recently returned from the WorldSkills competition held in Abu Dhabi, where she competed in the auto body category. That evening, attendees were invited to a Gala Dinner to celebrate Fix Auto’s 25 years in business. Renowned Québec comedian Bruno Landry hosted the Gala. Landry entertained everyone with his famous quick wit as he strolled down memory lane, chatting with some of Fix Auto’s original strategic partners.
During the second day, presentations were given by both the operations and marketing teams. Both presentations highlighted information and tools shop owners need to continue to grow their businesses in their local markets. Smaller breakout sessions rounded out the day. Each session provided attendees the opportunity to meet in smaller groups to encourage open dialogue and provide valuable feedback. “This is where Fix Auto began,” commented Yves Roy, General Manager for the Québec region. “The tremendous growth and dedication of the team here in Québec is inspiring. This annual event brings all of our strategic partners from around the province together to participate in some informative presentations.” Decmeber 2017 collision Repair 59
FACTS & FIGURES
Could it Happen Here? Shop owners worried about liability after landmark US case By Mike Davey
he need to follow OEM procedures has been mentioned by numerous industry figures and OEM position statements, but the recent verdict against John Eagle Collision Centre in Texas has thrown the situation into stark relief. In brief, the facility did not follow OEM procedure when it repaired a 2010 Honda Fit. The couple who later purchased the vehicle were severely injured in a subsequent crash. The final result is that the facility was ruled to be at least partially responsible, and ordered to pay millions in damages. Collision Repair magazine’s survey asked our readers to weigh in on the subject of liability in repairs. First, we asked them if they thought similar judgments could occur in Canada. The majority (82 percent) see no reason to assume that shops in Canada are safe from this sort of legal action. However, 7 percent of respondents said “No” and a further 11 percent indicated “Other.” Let’s dig into some of those a bit. Broadly speaking, the “Other” respondents aren’t entirely sure if something like this could happen here. A shop on the hook for an “improper” repair? There’s no doubt that could happen, but damages and penalties are often seen as much higher in the US than in Canada. It’s worth noting that John Eagle Collision Center’s website said it used “OEM procedures or better” when performing repairs. While the official Honda procedure called for welding the Fit’s roof, the shop used glue. Testimony from the shop’s production manager indicated that they did in fact think this was a superior procedure. One comment left on this question refers to this. As always, comments are presented anonymously, with only minimal editing from us. 60 collision Repair collisionrepairmag.com
Do you think similar judgments may occur in Canada? 3
The majority of survey respondents believe a similar judgment could be handed down here, but dissenters note that Canada’s litigation laws are somewhat different from those found in the US.
Yes (17) No (50) Other (8)
What are the best ways for shops to protect themselves from these sorts of judgments?
Following OEM procedures
Document every stage
Retain legal counsel
Inspect every repair
Ensure appropriate training
FACTS & FIGURES
“I have so many questions about this story it’s hard to put them all in this comments box. There is no debate they didn’t follow OEM procedures, but would that have made a difference in the accident? Are OEM procedures really the best because they have been tested, or is it just easier and cheaper to build it that way on an assembly line? Should a shop really be 75 percent responsible after somebody hydroplanes into oncoming traffic at 75 miles per hour?” Two comments sum up the general feelings of the “No” side: “Litigation laws in Canada are much different.” “The dollar amount is typical American
craziness. Does the shop have liability in the case? Yes, but so does the insurance company. In Canada we have to look at what is acceptable for one manufacturer and is not for another. There is no standard repair procedure for all makes and models and access to information could improve to a much higher level than it currently is.” We also asked readers to let us know if they carried liability insurance to protect their business from events such as this. Most respondents do (78 percent), but 22 percent do not. However, comments left on this question made it clear that even those that do would not be likely to have their
insurance cover a judgment of this size. The next question asked readers to let us know if they’ve ever consulted legal counsel regarding repair liability. The majority (44 percent) have not, but a further 31 percent say they intend to. A total of 25 percent of respondents have consulted legal counsel. Of those respondents, 36 percent have consulted counsel as a direct result of this particular case. Finally, we asked readers to let us know the best ways for a shop to protect itself from liability. For this question, respondents were asked to weight various options according to importance. You can see the totaled results in the second table on page 60.
Will we see more consolidation in the jobber sector? 3
Next Five Years 3
Yes (91) No (4)
Not Sure (20)
Yes (13) No (11)
Jobber Consolidation We can expect to see more consolidation in the jobber sector before the end of 2017, if the readers who responded to Collision Repair magazine’s poll on the topic are correct. The majority, 68 percent, believe the jobber business will undergo further consolidation before the year is out. An even larger percentage, 91 percent, believe we’ll see more consolidation in the sector sometime over the next five years. While the majority of survey respondents expect to see more jobbers acquired by larger concerns by the end of 2017, there is a significant number (24 percent) who said they were unsure. This is a very large percentage compared to those who indicated that we wouldn’t see more consolidation in this period (8 percent). Considering the same question over five years, however, leads to very different answers. In that case, only 5 percent were unsure, with just 4 percent saying that we wouldn’t see more jobber consolidation. Part of the reasoning behind most mergers and acquisitions is that a larger organization can leverage economies of scale and offer a better price or more service. Given that the relationship between jobber and shop is often very involved and personal, we asked our survey respondents to let us know if they would be willing to switch jobbers if they were offered a better price or better service. Offering a better price is attractive to 44 percent of respondents. However, 27 percent indicated that better prices would
not convince them to switch. A full 29 percent of respondents said they were unsure. Looking at service, the picture is similar, with 51 percent saying they would switch, 21 percent saying they would not, and 28 percent indicating that they were unsure. Finally, we asked if more jobber consolidation would have a positive or a negative impact on the collision repair industry. The majority of survey respondents (57 percent) believe it will have a negative impact. A further 23 percent say the impact will be positive. Those who are not sure make up the final 20 percent. This is another case where the comments say more than the raw numbers ever could: “We are losing personal service, knowledge, training, etc. With big corporations you are just a number.” “Good competition keeps an honest environment.” “Both good and bad. The bigger chains may lead to better buying power, pricing and access to products and tools not available before. But there will always be a trade off when those smaller local businesses aren’t small and local anymore.” Collision Repair magazine runs new surveys every week on collisionrepairmag.com. Surveys are anonymous and open to all members of the industry. Contact our editors with editor@collisionrepairmag. com to tell them what survey topics you would like to see. December 2017 collision Repair 61
Honda Cares Formula Honda welcomes Honda delegates from Japan
othing shows caring like travelling thousands of miles to learn more about your company’s international operations. Eri Amimoto and Yohei Nakamura of Honda Japan recently travelled to Formula Honda in Markham, Ontario, in order to receive a hands-on experience of Honda Operations in Canada. Cuong Phung, Director of Parts and Wholesale at Formula Honda, and his team are well known within Ontario’s collision repair industry. He and his team have developed an excellent reputation for customer service as well as putting their clients’ success first. The Japanese delegates were lead through Formula Honda’s vast facilities, learning about day-to-day operations, parts management and inventory as well as customer relations.
Cuong Phung, Director of Parts and Wholesale at Formula, was happy to host the Japanese delegates.
“The Japanese market is quite different in terms of demographics for example,” explained Cuong Phung. “Their customers and staff member are primarily from Japan while the North American market includes a much more various demographic.” Collision Repair magazine got the opportunity to join the delegates along with key Honda stakeholders on a tour of the facility, which closed with a roundtable meeting. The delegates took the time to ask specific questions about operations, products as well as future plans. Overall, the meeting conveyed Honda’s commitment towards their Canadian counterparts. The meeting also strengthened Formula’s Honda’s leadership in the field of parts management and customer service. December 2017 collision Repair 63
Clear View ADAS brings special challenges to a once-simple procedure By Mike Davey
e all know that repair costs have risen. We also know why. The simple fact of the matter is that modern cars are much more complicated than in years past. The manufacturers have introduced new materials, and ultra-high strength steels are
sensors or displays and include camera mounting brackets. These will also impact the repair procedure. Crash avoidance technology is becoming more widely available. At least 20 automakers have committed to making autonomous emergency braking (AEB) a standard feature by September 2022.
“Our research highlights the need to make sure that windshields with ADAS sensors and cameras are properly calibrated whenever they are replaced, whether they are OEM or aftermarket.” - Sean O’Malley, Senior Test Coordinator at IIHS. [TOP] Three views of a Honda Civic’s windshield mounted camera. Only the centre photo shows the correct mounting geometry. The left and right photos have the camera only slightly misaligned, but it still led to seriously degraded system performance in IIHS tests. At no time did a warning light appear on the dash.
now commonplace. Also, electronics and sensor systems have continued to proliferate. All of this means a higher cost of repair when it goes wrong. Replacing a windshield used to be a relatively simple procedure. That time is behind us. Today, this once-simple procedure must take into account the many different advanced driver assistance systems (ADAS) that rely on the windshield’s position and integrity. The windshield itself may be loaded with
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Just given that, we’re probably looking at 50 percent of the total North American fleet having some kind of forward collision warning (FCW) or AEB systems by no later than 2027. Other factors could speed up the timeline. Already, we’re seeing some OEMs insist on OEM replacement windshields to ensure that any of the FCW, AEB or lane departure warning (LDW) technology is working as intended. The OEMs require that the ADAS systems be calibrated after windshields are installed.
Sean O’Malley, Senior Test Coordinator of IIHS. He notes that research conducted by the organization seems to confirm what many OEM sources have been saying. These instruments must be properly calibrated or they simply won’t work as intended.
Some stills from IIHS testing of a Honda Civic’s lane departure warning system. In the scenario depicted in the top frame, the warning came on too early. In the other case, it came on too late, after the car had already crossed into the other lane.
The Insurance Institute for Highway Safety (IIHS) has conducted some research tests to explore the necessity of these requirements for vehicles equipped with LDW and AEB. “Our research highlights the need to make sure that windshields with ADAS sensors and cameras are properly calibrated whenever they are replaced, whether they are OEM or aftermarket,” says Sean O’Malley, Senior Test Coordinator at IIHS. “What we found seems to confirm what many OEM sources have been saying: These instruments should be calibrated or they simply won’t work as intended.” IIHS technicians examined OEM and aftermarket replacement windshields on some late model Honda Civics. One issue technicians noted was a misaligned camera mounting bracket on an aftermarket windshield. The camera’s mounting was just one degree different from the OEM mounting, but it affected the car’s AEB and LDW performance. IIHS ran numerous tests with the camera rotated to various positions in the mount. In the case of the AEB system, a misaligned camera caused the car to apply the brakes later than it normally would have. With LDW, technicians noted false readings, leading to too-early or too-late warnings. Although such miscalibrations may not directly cause a crash, they could reduce the potential benefits of crash avoidance technologies. The once-simple procedure of replacing a windshield is now quite complicated and requires enormous precision. IIHS has surveyed a number of dealer service centres and found that 75 percent of those centres that received calibration requests were due to windshield installation issues. Glass is frequently a sublet for collision repair facilities, but relying on the dealership may not get the job done properly. Some dealerships aren’t equipped to do the work. O’Malley asked one dealer to calibrate an ADAS system after windshield installation, and they referred him to another dealership that was about 70 miles away. That’s a bit of a hike to flatbed a customer’s car, especially if they want it for this weekend! In another case, dealership technicians weren’t up to speed on calibration procedures and had trouble calibrating a Civic until IIHS reiterated Honda’s procedure to them. “We asked them to please follow the entire Honda procedure, skipping no steps. Guess what? It calibrated after all. It turns out they were leaving out some steps,” O’Malley says. Approximately two-thirds of comprehensive auto claims involve glass work. Looked at in dollars, almost 14 percent of the bill goes toward glass. This is increasing due to windshield replacement costs and the costs of needed calibrations. IIHS research has shown that both camera mounting and mounting geometry can affect the performance of ADAS systems. As repair shops begin to see more of these windshields, it is important that they pay careful attention to calibration to make sure ADAS systems function correctly. December 2017 collision Repair 65
Managing Millennials Recruiting and retaining the next generation
[TOP] Fix Auto St. Catharines thrives on integrating young people into the collision repair industry.
illennials, recruit and retain often appear in the same sentence, and as the workforce ages and young people start growing up into working members of society, the conversation on how to integrate them into the collision repair industry is becoming increasingly important. Mark Claypool has a wide range of educational experience, from working as the Executive Director for the I-CAR Collision Repair Education Foundation to starting the national program, Mentors at Work, in 2000. Claypool studies millennial tendencies extensively, and with this information he has developed management techniques that complement these tendencies. “Since I was the Executive Director at the Foundation, shops were having trouble finding sufficient quantities of good workers,” he says. “It takes a lot of effort to take a new person on board, and there’s a musical chair situation of techs jumping from shop to
BY ERIN MCLAUGHlIN
shop, looking for better opportunities with no loyalty to their employers.” These issues are what motivated Claypool to start working on solutions for recruiting and retaining new employees back in the 90s, and more recently, for millennials. Shops often have technicians who work in isolated stalls on their own, but Claypool advises against this. “When it comes to attracting millennials, it’s important to show a team atmosphere,” he says. “They love the social aspect, group accomplishments and the opportunity to put their heads together.” He added that improving the shop community should extend to the community at large. “Millennials like to see companies giving back to the community,” he said. “They typically don’t take work home with them, they have other meaningful things going on in their lives. They’ll stay longer with a company that supports their community.” December 2017 collision Repair 67
Johnny (left) and his father, John D’Ambrosio, co-owners of Fix Auto St. Catharines. The pair recently revamped the way they run their facility and have seen a significant shift in shop culture.
Fix Auto St. Catharines team. Management here encourages the staff to come up with new ideas, problem solve and get creative, allowing techs to feel as though they are contributing to the business in a meaningful way.
Josh Boland, Painter at Fix Auto St. Catharines.
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In essence, Claypool believes that bringing their work life and personal lives closer together by using work as a means to improve their community will make work more meaningful and improve employee satisfaction. A third generation family owned repair shop in St. Catharines has not only figured out how to successfully integrate young people, but thrives from doing so. The shop is Fix Auto St. Catharines. Recently, it went through a major transformation in order to draw more staff and improve retention. “Since revamping the way our shop is run, there has been a shift in shop culture,” says Johnny D’Ambrosio, who owns the shop with his father. “Productivity has improved, staff progress at a faster pace, attitude is better and there is a healthy sense of competition.” As they hire many young people fresh out of school, thoroughly training each employee that comes through the shop is vital. Staff are put through an Axalta training program to get an understanding of the work they need to do. Their training is continued in the shop, where they can really hone in on a technical skill through experience. “New technicians shadow and learn from older technicians and we encourage them to try and do,” says D’Ambrosio. Employees also attend various I-CAR and Fix Auto courses to further advance their skill sets. While the internal training that is often needed when hiring less experienced young people is sometimes considered a waste of time and resources, D’Ambrosio argues the initial setback is worth it in the long run. “A younger, driven
and progressive team allows your business to excel,” says D’Ambrosio. Management encourages the staff to come up with new ideas, problem solve and get creative, allowing techs to feel as though they are contributing to the business in a meaningful way. Hiring on attitude has another long-term perk: “If you have a toxic member on your team, even if they’re a good performer, the long term effect will be crumbling. The business as a whole will not succeed,” says D’Ambrosio. If the attitude is right, the person will learn and improve, and that initial inconvenience will pay dividends in the form of a loyal, satisfied employee. Providing staff with opportunities for growth has served the business well. “I would never hire an estimator outside our business. Instead we’d train one of our own on estimating,” says D’Ambrosio. Consequently, employee retention has improved drastically. “In the last year, our turnover rate has been non-existent, which is rare,” D’Ambrosio says. “We have employees who planned on only working with us for a few months, but ended up staying on for years.” Charlie Roberston is a full-time teacher at the Collision Career Institute (CCI) in Anaheim, California. He has a strong interest in the millennial generation, having studied over 150 peer-reviewed articles on the subject. To him, the matter of recruiting millennials is vital to the survival of the collision repair industry. Millennial recruitment, he argues, is not an option. “The workforce is aging, and if we don’t find a way to engage millennials and adapt, our businesses will be dead,” he says.
(From top) Jeff Clark, Zach Cole and Jordan Beatty conducting repairs at Fix Auto St. Catharines. Staff are put through an Axalta training program to get an understanding of the work they need to do.
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(From left) Tyler Robinson, Josh Boland and Warren Copland. Hiring on attitude rather than aptitude has been a major success in Fix Auto St. Catharine’s hiring tactics.
Frustrated with the difficulty millennial collision repair students were experiencing transitioning to work after their training, Robertson partnered with Erick Bickett of Fix Auto USA to create CCI. The organization developed a structured apprenticeship program where students learn collision repair concepts and methods online and have a full-time paid apprenticeship in collision repair centres from the first day of their training. The program has
experienced 100 percent placement of their students in this model. Millennials function much better in this type of program and seem to grow quickly into their new roles when given the needed support. Robertson studies millennial tendencies and works with this information to determine how best to bring and keep them in the workforce. “Millennials have very different ideals than Generation X and the Baby Boomers. To
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succeed in bringing millennials in, we have to change our perspective and incorporate these ideals,” says Robertson. These ideals include a good work/life balance, flexibility in the workplace, hands-on learning and community involvement. To draw in and hook millennials, shops should not only give their employees opportunities for growth, but also provide them with a specific plan and timeline detailing
how they can grow within the business. “If you make a plan with them that they like, they’ll stay,” said Robertson. “Tell them where they could be in three months, in three years. Include information on what their salary could turn into, what their job title could turn into. Millennials love opportunities to grow. Giving them the ability to do so creates excitement and meaning.” He noted two other vital changes a shop must make. First, foster a team-oriented environment by creating small teams consisting of apprentices and more experienced technicians. This way, apprentices will have hands-on learning experience, and see firsthand how more experienced technicians get the job done. Second, young workers must see the value of the work to the customers they are serving. Remind them that the cars they are fixing hugely impact the day-to-day lives of their owners, and what technicians do is incredibly valuable to customers. They are not just repairing a car. They are guardians of public safety. Recruiting new members for your workforce is something you cannot ignore. There is no better time than now to start considering how you can strengthen your shop’s ability to manage the next generation of workers.
Millenial Retention • Develop a culture of learning in your business. • Actively change the way you think, speak, and act about millennials. Invite all other employees to do the same. • Define your Employee Development Plan and Compensation Plans. Re-write or re-examine your Operations Manual and Employee Manual/Rules and Regulations. • Allow for flexibility in work schedules, such as flex time. Institute teams to allow even more flexibility. • Have regular meetings about training and the shift toward a culture of business learning. • Actively engage millennials in your staff to help
with this, put them in charge, and support them. Charlie Robertson of CCI has developed a plan for millennial recruitment and retention. Putting these essentials in place will not only help you attract and retain the next generation, they will likely result in higher employee satisfaction across the board.
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Michel Charbonneau, Vice President, Sales & Marketing, PBE division, Canadian Automotive Group.
Lorne Henrikson, Regional Sales Manager, Western Canada, FinishMaster Canada and Jeff Murphy, Director PBE Sales, Eastern Canada for Uni-Select.
If it’s worth doing once, it’s worth doing three times. FinishMaster celebrates multi-shop expansion in Western Canada
“We wanted to celebrate the opening of all three new locations, so what better way than a tent party. Our vendor partners set up shop, and with a downtown food truck on site there was plenty to see, do and eat.” - Michel Charbonneau
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hen it comes to West Coast parties for repairers, FinishMaster is the latest toast of the town. With the majestic Rockies in the background, the newly rebranded Vancouver Autocolor opened its doors to shops from the Greater Vancouver Area and South Vancouver Island to celebrate the launch of three new locations: FinishMaster Burnaby, FinishMaster Victoria and FinishMaster Langley. Regional representatives from FinishMaster Canada were on hand to introduce themselves to those who attended the event. Each guest was welcomed with a FinishMaster branded baseball cap and stainless steel mug, and there was a door prize draw for a paddleboard from PPG Industries. Also on hand with a bevy of new and exciting products were key manufacturers from across the country, including AnestIawata, Dominion Sure Seal, Wedge Clamp, 3M and ProSpot. “We wanted to celebrate the opening of all three new locations, so what better way than a tent party. Our vendor partners set up shop, and with a downtown food truck on site there was plenty to see, do and eat,” said Lorne Henrikson,
Regional Sales Manager, Western Canada, FinishMaster Canada. “It was FinishMaster’s big launch in the Vancouver region, so we wanted to do it right to make sure we were properly presented to the market there. We are delighted to extend and improve our Canadian FinishMaster family with their expertise,” said Michel Charbonneau, Vice President, Sales & Marketing, PBE division, Canadian Automotive Group. The open house tradition is now in its 19th year, carried over from the previous owner, Vancouver Autocolor. FinishMaster, a subsidiary of Uni-Select, acquired the stores in December 2016. Following the initial deployment phase of FinishMaster Canada in Toronto and Ottawa last fall, these three inaugural launches introduced the FinishMaster brand in Western Canada with a presence in the Greater Vancouver Area and South Vancouver Island markets. FinishMaster was introduced to the American automotive aftermarket in 1968 and joined the Uni-Select family in January 2011. The company has grown from a single outlet to a team of more than 1,900 members. Their mission has always been to strive to be the key factor in the success of their customers.
Report on Training
I-CAR introduces two new Hands-On Skills courses
-CAR has announced the introduction of two new courses to its Hands-On Skills Development series: Plastic Repair and Squeeze-Type Resistance Spot Welding. The two new courses are in addition to the previously introduced Rivet Bonding and MIG Brazing courses. Plastic Repair Hands-On Skills Development is a four-hour course that will provide students the opportunity to perform a variety of plastic repairs in a hands-on environment. Students will use adhesives and various welding options on actual bumper covers. Upon completion of the course, I-CAR says students will be able to perform plastic repairs using adhesives, hot air, and airless welding techniques using specific welding tools, and other procedures. Squeeze-Type Resistance Spot Welding
will know how to properly set up a spot welder, perform spot welds on metals of varying thickness and more. “I-CAR understands the changing needs of today’s vehicles, new attachment methods, and OEM-required proI-CAR has launched cedures, which prompted the creation two new courses in its Hands-On of the Hands-On Skills Development Skills Development curriculum track last year,” said Josh series: Plastic Repair McFarlin, I-CAR’s Director of Curand Squeeze-Type Resistance Spot riculum and Product Development. Welding. “Technicians and the industry need this type of hands-on, instructor-led Hands-On Skills Development is a five-hour training with adequate practice time course that will provide students the oppor- in order to fully understand these complex tunity to perform spot welds on a variety of repair procedures. I-CAR’s training programs metal thicknesses and with a variety of flange have been developed to provide the most treatment techniques. Students will also comprehensive instruction and critical skill learn the importance of proper planning and development opportunities.” preparation to ensure safe welding. I-CAR Information about the courses can be said following course completion, students found at i-car.com/handson.
Construction of Haiti Arise collision school to begin in January Haiti Arise Technical Institute has announced that the construction of the teaching facility dedicated to collision repair in Haiti will begin in January 2018. Haiti Arise partnered with organizations within the collision repair industry, including CCIF in Canada and CIC in the US, with the objective to build a collision repair training and production facility in Grand Goave, Haiti. Haiti Arise said the development would add to the multitude of skilled trades taught at the Haiti Arise Technical Institute, bringing “desperately needed” education in proper and safe repair of collision damaged vehicles to Haiti. Through the “Buy-A-Brick” and Haiti Arise Corporate Sponsorship Program launched in 2015, over $100,000 has been raised to pay for the construction. Haiti Arise said the industry can still help with the project by making ongoing financial investments, donating tools, equipment and supplies, as well as volunteering at the Institute. Industry volunteers Tom Bissonnette of Parr Auto Body and Leanne Jefferies of the Assured Performance Network led the charge to raise funds for the Haiti Arise Technical Institute after visiting the facility in person in March 2015. “We are excited to be a part of something that will help so many families in a country that has faced so many challenges. I am
looking for ward to returning to Haiti Arise to see construction begin,” said Bissonnette. Jefferies added: “I am so grateful for the support industry has provided to Haiti Arise. This project was started with a belief that we would accomplish our goal by working together, and with construction slated to begin in January, it’s now within our reach.” Marc Honorat, Haiti Arise founder, has invited collision industry representatives to join the January 2018 trip. “We are grateful for the opportunity to partner with the collision repair industry. The collision repair training and production facility will be a valuable addition to our technical institute,” he said. “I invite you to visit Haiti Arise, to be onsite for the ground breaking, to volunteer your time, and to share in a lifechanging experience and see first-hand the community that you are helping.” Ongoing funding through industry donations will help to ensure donated equipment, tools, and supplies can be shipped to Haiti. Donations can be made at haitiarise. org/donate. More information can be found at ccif.ca/initiatives/haiti-arise-project.
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Lisa and Marc Honorat, founders of Haiti Arise, with Tom Bissonnette (centre). The organization has announced construction of the facility will start in January 2018.
The future site of the collision repair training facility at the Haiti Arise Technical Institute. Members of the industry are invited to take part in the groundbreaking.
Report on Training
AIA Canada presents to Minister of Employment The challenges and opportunities of apprenticeships in the automotive industry were the main discussion points of a recent presentation made by France Daviault, Senior Director of Stakeholder Relations for AIA Canada, to the Economic and Social Development’s Commission (ESDC) employer forum and the Minister of Employment, Workforce Development and Labour, Patricia Hajdu. The presentation highlighted key topics such as broadening the scope of job grants in Canada, reviewing employment insurance for apprentices, incentives for employers to send apprentices to school, ensuring provinces work with educators to develop training modules that allow employers to have options as to when to send the apprentice for training and promoting trades through a potential national campaign. There was also an announcement of a “New Skills Lab,” which will work with in-
dustry to identify the skills of the future. “Although we need to be realistic about the actual changes that are possible during this government’s tenure, it was exciting to have automotive at the forefront of most conversations,” Daviault said. “The points Automotive apprenticeship issues came to the fore at the recent during my presentation were meeting of the Economic and Social Development’s Commissioner echoed by other industries for Employers (ESDC) forum held in the nation’s capital city. during the meeting.” A statement from AIA Canada said the participate in a focused, issue-based conpresentation was important for two reasons: versation that informs, comments and “[The presentation] proved that AIA is seen positions with government.” as the go-to resource for governments on AIA is currently working on developing issues that impact the automotive sector, an overall strategy for its engagement on and it also highlighted AIA’s new approach the issue of labour, which it expects to share to government relations, one that pulls shortly. For more information, please visit together members and stakeholders to aiacanada.com.
ALI updates Lifting It Right online lift safety course Automotive Lift Institute (ALI) has announced updates to its Lifting It Right online training course. The interactive course covers safe lifting practices for all types of automotive lifts. The Lifting It Right course was first launched in 1987 as a simple safety manual. While the core focus on lift safety is unchanged, ALI says the new course is thoroughly modernized, both in content and delivery. The course can be taken online with a computer or mobile device, and ALI says most people finish it in an hour or less. At the end, a certificate of completion is stored online for easy access if a shop needs to produce training records.
ALI has updated its Lifting It Right online course for 2017. The course functions on a variety of devices. ALI says it takes an hour or less to complete.
“ALI and our member companies take our responsibility to technicians, managers, dealers and shop owners very seriously. After all, their safety is riding on our lifts every day,” says R.W. “Bob” O’Gorman, ALI President. “We have supported the training of millions of lift operators over the last 30 years. We’ve distributed more than three million Lifting It Right manuals alone.” In addition to updated technical content,
ALI has added professional narrators, real-world scenarios, and all-new 3-D animations to make the program more engaging. In addition, the price has been reduced from $29 USD per person to $16 USD. Once registered, students can take up to 90 days to successfully complete the program, including completing the online test. Lifting It Right is available to order from ALI at autolift.org/ali-store.
I-CAR launches new ‘Driving the Conversation’ podcast Hosted by I-CAR, the monthly series of podcasts, named “Driving the Conversation,” includes informative discussions from industry leaders on noteworthy topics. It aims to offer listeners access to current and valuable information to give them better insights into the opportunities and challenges facing the industry. I-CAR said the conversation will benefit
business owners and executives. “We are confident that listeners will find the new podcast series to be a valuable resource,” said John Van Alstyne, I-CAR’S CEO and President. “They can expect to hear about how I-CAR is supporting the collision repair industry with innovative solutions to help them navigate the many ongoing technical challenges.” December 2017 collision Repair 75
Regional News | British Columbia
Craftsman Collision raises nearly $34,000 at annual food drive Craftsman Collision has announced the results of its annual day-long food drive. In total, the company helped to raise $33,944.70 in donations at this year’s event. “We are incredibly pleased with the results of the food drive and proud of all of our staff for volunteering their time for such a worthy cause,” said Janet Kones of Craftsman Collision. Kones served as the event’s organizer. “The customers of Save-On-Foods really stepped up with both food and cash donations which we are so appreciative of. It will go a long way with helping families in need in the communities where the food drives were held.”
Craftsman Collision runs the event annually, in partnership with Save-On-Foods and the Salvation Army. Craftsman Collision pledges to match every item donated, meaning that for every can of food donated, two cans make it onto the shelf at a local Salvation Army Family Services unit. Since 2009, Craftsman Collision has raised nearly $285,000 in food and cash for The Salvation Army. “Hunger is something we can all solve together,” said Rick Hatswell, COO of Craftsman Collision. “We mobilized food, people and positivity, which made our one day food drive
Craftsman Collision staff and Salvation Army mascot Sally Ann at this year’s food drive. In total, the event raised $33,944.70 in donations this year.
a big success. I’m really proud of all our staff who volunteered to do their part of ensuring no families go hungry in our communities.” For more information, please visit their website at craftsmancollision.com.
Fix Auto expands in Kamloops Fix Auto is expanding again, this time in Kamloops, British Columbia. The announcement was made by Peter Polito, General Manager for Fix Auto Western Region. A statement from Fix Auto says it’s the only Insurance Corporation of British Columbia (ICBC) accredited bodyshop operating on the north shore of Kamloops. Owner Steve Davidson says he is excited to join the national brand. “We are looking forward to the opportunity for growth, business support and networking with our industry peers. All of these are now possible because we are part of the Fix Auto network,” he said. The shop has recently undergone upgrades, including two new paint booths and a completely renovated office and reception area. The shop also boasts aluminum repair technology with a clean room and is a Ford certified aluminum repair facility. The shop is also an ICBC Glass Express and Valet facility.
Some members of the team at Fix Auto Kamloops, including owner Steve Davidson (right).
“We are delighted to welcome Steve and his team to the Fix Auto family,” said Polito. “Their dedication to the collision industry and the drive to grow their business makes them a great addition to our network. We look forward to working in partnership with them.” For more information, please visit fixauto.com.
Craftsman expands with two shops in Prince George Craftsman Collision has expanded its portfolio of shops with the acquisition of Jack Schultz Autobody and Queensway Autobody. The shops will operate under the name Schultz-Craftsman Collision and are located in the city of Prince George. Former Jack Schultz owner and President Lee J. Leslie will remain as Shop Manager of Jack Schultz Autobody. In addition, he will take on the role of Regional Manager in Northern BC for Craftsman. Queensway’s shop manager, Mirsad Mujcin, will retain his position alongside all existing Queensway and Jack Schultz staff. Mujcin said the new ownership gives his shop the “tools to do even better.” “Craftsman has access to the best systems, training and technology. Our technicians and painters and I are looking forward to getting many of these systems into our shop,” he said. Speaking of the acquisition, Leslie said: “I’ve always admired Craftsman Collision and for some time it [has] been my goal to become part of the Craftsman family. Like us, Craftsman is a family-owned 76 collision Repair collisionrepairmag.com
Back row, from left: Mirsad Mujcin, Jack Galloway and Lee J. Leslie. Front row: Marlene Matthews, David Verity and Drene Callander.
business. President and owner Bill Hatswell runs the company with the help of his two sons, Rick and Greg, and his daughter Melanie, who are every bit as dedicated to excellence as we are. If they weren’t, we would never have joined them.” Rick Hatswell, Craftsman’s Chief Operating Officer, said the company has developed a “significant presence” in the Lower Mainland, and while it still looks for opportunities in the area, Craftsman has also turned its attention elsewhere for growth in the province. “Prince George is a thriving northern community, and an important step forward for us. I can’t wait to show the people here what we can do,” said Hatswell.
Alberta | Regional News
Empire Collision sends refurbished fire truck to Honduras Empire Collision in Edmonton, Alberta, joined together with other businesses in the province’s capital to donate a newly refurbished fire truck to a city in Honduras. The project was put together by the Riverview Rotary Club of Edmonton and led by Dr. Roman Bayrock. The 1985 Ford fire truck will be commissioned for immediate service in Roatàn, Honduras. Mechanical repairs to the fire truck were donated by Alberta Honda. In turn, the dealer suggested Bayrock should contact Empire Collision about the bodywork. Empire Collision operates three locations in the Edmonton area. According to General Manager Bill Johnson, the team “jumped at the opportunity.” “The project was a lot of fun and the guys here at Empire Collision really enjoyed working on it. If Roman ever had any future projects we would definitely consider working on them. It’s good fun for us and it’s for a great cause,” said Johnson.
Empire Collision, along with Alberta Honda, recently refurbished a fire truck. It will be donated to a community in Honduras.
CSN Collision Centres expands in Alberta with CSN JD Collision CSN Collision Centres has announced the addition of CSN JD Collision to its network of collision centres, adding two new shops in Cold Lake and Bonnyville, Alberta. CSN JD Collision was founded by Joe and Rose Dechaine in their home town of Bonnyville in 1985 and the family-owned business has earned a “great reputation” in Northern Alberta, according to a statement from CSN Collision Centres. Shortly after opening their first shop, the Dechaines realized that one facility was not enough to accommodate customers’ needs. Later that year they opened the company’s second shop in Cold Lake, about 50 kilometres away. The shop is now owned by the couple’s three sons, Luc, Joel and Pat Dechaine. “We are so proud and thankful to be carrying on my parents’ business,” said Joel Dechaine. “They really ran it well and it’s our job to keep this up. We always keep one thing in mind: the key to our success is to help our community by providing world class customer experiences and repairs.”
CSN Collision Centres has added CSN JD Collision to its network. Pat Dechaine (left) is the current owner along with brothers Joel and Luc, while Paul Ouelette (right) is the Shop Manager.
Fix Auto Airdrie hosts grand opening The Fix Auto Airdrie team recently invited the entire community to celebrate the facility’s grand opening. The facility is owned by Mike Davis and Dave Miller. Fix Auto Airdrie originally opened under the ownership of Mike Davis in June 2016. Davis and Miller joined forces on the new location shortly thereafter. “This isn’t my first business partnership with Dave,” said Davis. “Our partnership extends to locations in Calgary and Lethbridge as well as Airdrie. It’s a formula that works and we both feel that Airdrie is a community worth the investment. We are passionate about our industry, take pride in our work, and are proud to support the community and people who live and work here. It’s those values that have made our partnership under the banner of Davis Auto Group such a success.” Local area businesses, customers, suppliers, Fix Auto head office staff, City of Airdrie Mayor Peter Brown and many others joined
Dave Miller and Mike Davis cutting the ribbon at the official grand opening of Fix Auto Airdrie. Davis and Miller are also co-owners of facilities in Calgary and Lethbridge.
the Fix Auto Airdrie team to mark the event. The grand opening included a free BBQ lunch, tours of the shop, prize draws and an official ribbon cutting ceremony. “We are very proud to be a part of the Airdrie business community,” said Miller. This newly renovated Fix Auto location boasts brand new office space and production areas, an estimating bay, paved parking for 30 vehicles and 18 stalls of secured vehicle storage space. December 2017 collision Repair 77
Regional News | SaskatchEwan
Tom Bissonnette has recently accepted the position of Executive Director of the Saskatchewan Association of Automotive Repairers (SAAR). Bissonnette takes over from Bill Ziebart, who has recently retired.
Tom Bissonnette appointed SAAR Executive Director Tom Bissonnette, former owner of Parr Auto Body and former Chairman of the Canadian Collision Industry Forum (CCIF), has been appointed as Executive Director of the Saskatchewan Association of Automotive Repairers (SAAR). Bissonnette, who previously wrote Collision Repair magazine’s “Prairie View” column, officially started the position on October 1 after taking over from predecessor Bill Ziebart who retired from the post. After selling 90 percent of his former business, Parr Auto Body, to the staff who worked there, Bissonnette took a year out of the industry to focus on home renovations and travelling. After seeing the vacancy at SAAR, he was eager to make his way back into the industry. “I still have a lot of enthusiasm and energy for the collision repair industry. I want to use my experience to be a mentor for the young people coming through the sector, while adding a lot more value to SAAR’s existing members. I feel like I can make a positive difference for our members,” said Bissonnette in a recent interview with Collision Repair magazine. During his tenure, Bissonnette will focus on providing more value to SAAR members through increased training in both technical and soft skills. Meanwhile, the organization will help shop owners adjust to the changes involved in dealing with Saskatchewan Government Insurance (SGI) as shops become the primary estimating and claims processing stakeholders Bissonnette will also implement the addition of two conferences each year, one in the spring and one in the fall. The conferences are another method of adding further value for the association’s members, with a focus on both soft and hard skills as well as hands-on training. “SAAR is probably on of the more active provincial autobody associations throughout Canada, and we want to be the ones setting the standard of what a provincial association in the industry should like. We will engage with our member shops and partners to prove that, even if we sometimes disagree with each other on certain topics, we can work together to improve the industry,” said Bissonnette. For more information, please visit their website at s-a-a-r.com.
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Regional News | Manitoba
Regional News | Saskatchwan
MPI opens ‘state-of-the-art’ research and training centre
Manitoba Public Insurance (MPI) has announced the opening of its new centre for automotive research and training in Winnipeg. From left: Gary Lin of BMW, MPI President and CEO Dan Guimond, retired President and CEO Jack Zacharias and Crown Services Minister Cliff Cullen.
Manitoba Public Insurance (MPI) has opened a new “state-ofthe-art” centre for automotive research and training in Winnipeg. The insurer says the new facility, which opened at the J.W. Zacharias Physical Damage Research Centre, will help its staff keep pace with the rapid changes in the design, construction, technology and repair of motor vehicles. Announcing its opening, Crown Services Minister Cliff Cullen, said: “Changes in how vehicles are manufactured are having a significant impact on the reparability of new vehicles. The opening of this new research and training facility will benefit vehicle owners and Manitoba’s collision repair industry by ensuring that when vehicles are involved in collisions, they will be properly repaired back to original equipment manufacturer (OEM) standards.” The centre will also enable qualified technicians to work in collaboration with Manitoba’s repair industry, as it adapts repair methods related to vehicles now being constructed of complex materials, including aluminum, carbon fibre, highstrength and ultra high-strength steels. Training and research centre technicians will work closely with Manitoba’s repair industry and Red River College to offer access to training on new and emerging vehicle repair techniques and equipment. “MPI recognizes that the auto manufacturing industry is creating significant change for the collision repair industry and costs of repairs are increasing, which is why we are taking steps to save Manitobans money over the long-term,” said MPI President and CEO Dan Guimond. “This facility and the staff within it will ensure that the autobody technicians in Manitoba remain highly skilled and able to respond to rapidly changing vehicle construction and repair techniques.” The centre will also host technical training courses for the collision repair community, as well as offering tours to Manitoba high school students who may have an interest in becoming professional technicians. For more information, please visit mpi.mb.ca. April 2017 collision Repair 79
Regional News | Ontario
CARSTAR LC Group expands with CARSTAR Brantford West CARSTAR Brantford West has officially launched. The facility is located at 14 Ann St. in Brantford, Ontario. This is the second CARSTAR location in Brantford. Both are owned by CARSTAR LC Group, comprised of Ian Ladd, Peter Chavez and Javier Torres. This location has a rich history in the Brantford community, dating back to 1926. CARSTAR Brantford West, a 12,500 sq. ft. facility, offers full collision repair, as well
Franchise partners of CARSTAR Brantford West: Peter Chavez, Javier Torres and Ian Ladd. The facility is owned by CARSTAR LC Group.
as windshield repair and replacement. It is the 14th location for CARSTAR LC Group. “The experience, training and industry expertise that comes along with CARSTAR LC Group is incredibly beneficial for the regions they serve,” says Jean-Marc Julien, Regional Development Manager for CARSTAR. “They’re committed to serving the growing community in Brantford and are determined to bring a level of excellence with each repair and customer experience.”
Pfaff Autoworks takes top spot at 8 Hours of Passion event Pfaff Automotive recently held its “8 Hours of Passion” challenge, where teams of employees from each Pfaff division competed against one another in a budget track-car race. The event was held at the Canadian Tire Motorsport Park Driver Development Track in Clarington, Ontario. Each team was responsible for sourcing or choosing their own vehicle, performing the necessary modifications and working on the vehicle together after work hours. The work culminated in an end-of-season 8-hour endurance challenge. The teams were limited to a budget of $10,000 each, of which only $5,000 could be spent on the car itself. The remaining $5,000 was to be spent on safety equipment and modifications. Additional rules applied in terms of vehicle specifications. The car needed to be road-legal and able to get to the track itself without being towed. The car needed to pass safety certifications and be deemed track-safe. The car also needed be from one of the Pfaff brands, such as BMW, Audi, Porsche, Toyota, Dodge, Jeep, Chrysler, Volkswagen, McLaren, Mazda or Pagani. Points were attributed on a variety of aspects as well as on the vehicles’ performance. In terms of presentation, points were attributed for appearance, team presentation and employee engagement. Points were also attributed on each team’s lunch presentations since catering and hospitality are part of racing too. In terms of performance, the teams were attributed points on three challenges: Autocross, drag and endurance races.
The winning team was Pfaff Autoworks from Concord, Ontario, with a pink Porsche, inspired by the legendary 1971 Porsche 917-20 ‘Pink Pig’ design.
This year’s winning team was Pfaff Autoworks from Concord, Ontario, with a pink Porsche, inspired by the legendary 1971 Porsche 917-20 “Pink Pig” design. The car is painted like a butcher’s carcass diagram and sports the number 23. Glasurit and BASF sponsored the team’s car. “I was really impressed with the way Pfaff Automotive dealer groups engaged all of their employees and empowered them to use a budget and all of their skills to compete,” said Brian Busby, Territory Manager, Eastern GTA, BASF-ART. “The age groups were varied and it was nice to see all groups having fun. In my opinion, every team was a winner.”
Fix Auto holds Ontario Regional Conference and Tradeshow Fix Auto franchise strategic partners from across Ontario converged on Hockley Valley Resort in Mono, Ontario, for the annual Fix Auto Canada Ontario Regional Conference and Tradeshow. Steve Leal, President of Fix Auto World, opened the meeting with a quick look back at Fix Auto’s history. It had to be quick, as the bulk of his presentation focused on the current state of the network and how to drive business forward into the future. Leal outlined how the network will continue to support franchisees with new programs coming out to help them streamline production and office processes. Leal also discussed plans already in motion to improve existing programs
based on franchisee feedback. Fix Auto was also pleased to welcome Brigitte Pesant, Director of Collision Programs for the Automotive Industries Association (AIA) of Canada, as a special guest speaker. Breakout sessions featured heavily during the meeting. InO’Keefe, General Manager of Fix Auto Ontario and dividual sessions covered mar- Darryl Alexandra Zalec, VP of Marketing for Fix Auto Canada, present keting, sales and operations. The a donation to Patti Majcher of RMHC (centre). topics discussed included innovative operational tools to data regarding Fix with the goal of raising funds for Ronald Auto’s relationships with insurers. McDonald House Charities (RMHC). The The Fix Auto Masters Golf Tournament Fix Auto team raised $10,000 to help RMHC was held in conjunction with the meeting, provide services for families of sick children.
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QuebÉc | Regional News
Carrossier ProColor Lachute awarded Clé Verte platinum certification The Carrossier ProColor network, a member of CSN Collision Centres, has announced that its Carrossier ProColor Lachute collision repair facility has been certified as a platinum member of the Clé Verte (Green Key) program. Following on from its two gold certifications, a statement from the collision centre said it has taken several steps to become certified at the highest level of the Clé Verte program. “We invested in equipment to set up the workshop according to the standards of Clé Verte, with a waste sorting centre composed of barrels and containers for hazardous materials,” said Sylvie Lalonde, Owner of Carrossier ProColor Lachute. Employees of the shop were also involved in the process, by changing their work habits. Lalonde added: “We informed all employees about the new Clé Verte program procedures and the importance of respecting them in order to have the safest and healthiest environment possible.” The Clé Verte program uses an auditor to ensure a repair centre meets six major criteria that affect residual materials, the application processes and equipment. The program says it “proves to be a health protection for the collision centre workers and the surrounding citizens.”
The team at Carrossier ProColor Lachute. The facility has recently been certified as a platinum member of the Clé Verte program, a Québec-based program that recognizes environmental excellence in the automotive industry.
“Our motivation to stay with the Clé Verte program has always been the preservation of the environment and the health of our employees, which are very dear to us,” said Lalonde. She added the “sound management” of hazardous materials is easy to implement, claiming the most important aspect is to raise awareness among employees. For more information, please visit carrossier-procolor.com.
New addition to CARSTAR network in St-Nicolas CARSTAR has expanded in Québec with the opening of the new CARSTAR location in St-Nicolas, located at 800-B, J.-AmbroiseCraig Street in St-Nicolas. Located in the heart of a rapidly expanding city accessible by Highway 20, the shop is brand new and owns state-of-the-art equipment to repair all types of vehicles. Stéphane Pelletier, a class A painter, has teamed up with Richard Lauzon, a body builder with more than 24 years of experience in the field, as well as Rémi Pelletier, a collision repair specialist with 30 years of experience. This collaboration has allowed them to open a shop in line with their skills and aspirations in order to offer impeccable customer service. Stéphane has many years of experience in the industry in which he has established excellent relationships with insurers and managed one of the largest shops in the region. Stéphane plans to continue its development over the next few years, surrounded by a seasoned team.
CARSTAR has increased its Québec network with the opening of a new shop in St-Nicolas.
“CARSTAR is the most dynamic brand in our industry. It is synonymous with development, coaching, but also latitude. It is because of the company’s mentality that we decided to join this banner. The Quebec team is professional and attentive to our needs. This is exactly what we were looking for,” said Stéphane Pelletier.
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Atlantic | Regional News
CSN Collision Centres expands in New Brunswick with CSN Ronnie’s Auto Body Ronnie Caissie first opened the doors of his collision centre in Bouctouche, New Brunswick in 1972. Tilmon Caissie, the current owner, says for over 45 years, his family-owned business has taken pride in providing a one-stop-shop for all their customers’ vehicle needs. The facility has recently joined with CSN Collision Centres to become CSN Ronnie’s Auto Body. “People know CSN Ronnie’s as a place where they can get their vehicle repair needs done fast and well. I am proud to say that those who tried our services once, return later to experience the same high quality repairs. Here at CSN Ronnie’s, we take extra steps to accommodate our customer needs, providing exceptional work and care, just like my father did when he started the business,” says Tilmon. “We are in the business of making people’s lives easier during what can be a stressful time.” The business is also well-known in the community for its community involvement. CSN Ronnie’s supports local schools and organizations as well as hockey activities for kids. According to a statement from CSN Collision Centres, CSN Ronnie’s is a 4,000 sq. ft., state-of-the-art facility that is always striving to stay on top of the ever-changing industry.
CSN Ronnie’s Auto Body in Bouctouche, New Brunswick. The facility first opened in 1972 and has recently joined CSN Collision Centres.
“CSN Collision Centres is a leader in the collision industry and we want to belong to a group that aligns with our business model,” says Tilmon. “When people see the CSN Collision Centres sign, they know they will receive quality service and get their vehicle back to pre-accident condition in a timely manner. This is the kind of network we want to be a part of.” For more information, please visit csninc.ca.
Parts Finder Plus aims to decrease order time on parts A new mobile application is aiming to help the industry by creating a more time efficient and cost-effective alternative to sourcing car parts. The app has been developed by Newfoundland-based technology company Parts Finder Plus (PF+), founded in 2012 by Peter Squire and Stephanie Maloney. The company’s app is designed to allow shops to search and order parts directly, as opposed to individually contacting parts distributors via telephone and trying to track down the best part. Maloney said: “To locate parts, we currently have to sit down and call at least four distributor stores, or jump from one app to the next to record what’s available from each. We decided to do some research, and found there wasn’t yet a part sourcing app that ties into the repair shop and distributor account. So we began our endeavour to build Parts Finder Plus, an app that could source all the top aftermarket distributors into one efficient parts-locating app.” The app allows users to search parts by adding data such as the year, make, and model of the vehicle and the part required. The app will then search through a database of distributors and list all of the options for the part, including the different prices, delivery times, warranties, and available quotes from each distributor. Once a product is selected, an immediate confirmation will be received. “Using the PF+ app will save bodyshops a significant amount of time, allowing them to service more cars in a single day, while at the same time saving their customers money by finding them the best price on quality car parts in their geographic area,” said Maloney. After three years of product testing and business development, PF+ is currently in the process of updating the app for commercial launch. However, the company has struggled to obtain a government grant to develop it further, with the government claiming there is no benefit for Newfoundland. 82 collision Repair collisionrepairmag.com
Parts Finder Plus draws together information from different suppliers with the goal of making it easier and faster to find the best part.
The company is now looking for prospective customers for a free three to six month trial period where users will give feedback on how the app is being used. Version 1 is currently being used and tested by Pete’s Service Centre in Newfoundland and has already signed a licensing agreement with CARQUEST (coded in), Advanced Auto (to be coded in), and NAPA (to be coded in). The company hopes to get Version build 2.0 built soon. Peter Squire, owner of Pete’s Service Centre, commented: “Using the app saves me a lot of time. I simply pick up my phone and it shows me the cheapest price. It take at least 10 minutes for me to pick up the phone and call suppliers to find a part, whereas using the app takes me about 30 to 60 seconds at the most. You also don’t have to keep getting up and going to the office. That’s something I particularly like about it.” You can find out more by contacting the company on firstname.lastname@example.org.
Assured Thing: Wayne Hosaki looks forward to retirement after selling Birchmount Collision to Assured Automotive As the long time owner of Birchmount Collision, Wayne Hosaki never truly got the chance to enjoy a real vacation. Now that his shop is the first Ontario acquisition by the Assured/Boyd group, Wayne is looking forward to some time at the cottage. “I bought the cottage years ago and we’ve only ever spent a whole week there once,” said Wayne. “Working alongside my wife all these years, we’ve never had the chance to get out there much together. I’m looking forward to some time up there now that we’ve entered retirement.” Birchmount Collision is now an Assured Automotive repair centre and is the first Ontarian shop to have been acquired since Assured Automotive was purchased by the Boyd group six months ago. The shop is located on a busy corridor in northeast Toronto and is close to Highway 401, considered to be North America’s busiest highway. “Adding this location demonstrates how our acquisition capabilities have expanded
Wayne Hosaki, retired.
since Assured Automotive has become part of Boyd,” said Tim O’Day, President and COO of the Boyd Group. “Like Boyd, Assured has an active acquisition program. With Boyd’s resources they will be better positioned to act on opportunities.” “This centre is also well located within our network of repair centres in the GTA,
enabling us to quickly put synergies in place,” added Des D’Silva, CEO of Assured. We look forward to meeting new customers and providing another centre to serve our insurance partners.” “I’m glad Birchmount went to Assured,” said Wayne. “They are the ones who can improve the shop and ensure that it will succeed in the future.” The acquisition happened very quickly, although the transition period was simple and cordial. Assured Automotive even retained Wayne’s staff. “Retaining the staff was one of my stipulations,” said Wayne. “Some of my staff members have been around for a very long time and I wanted to make sure that they would be taken care for after I left.” Now that he has entered retirement, Wayne is looking forward to taking it easy, spending more time at the cottage and to having less responsibilities, giving him more time to relax alongside his family.
George Avery on potential best practices for DRPs A recent Guild 21 conference call aimed to create a conversation on how to improve the relationship between shops and insurers in regards to direct repair programs (DRPs). The guest was George Avery, formerly of State Farm, and now an independent consultant.Avery began his career as a technician and painter before joining State Farm. A statement from Guild 21 says it has been working on surveying shops on how administration re- George Avery, consultant. lated to DRPs can be made more efficient. Speaking of the surveys, Avery said: “We’re not saying the way that DRP programs work right now are bad, but we want to start a conversation with both shop owners and insurers on how we can improve administrative tasks and find some easy solutions.” The research aims to identify common and inconsistent administrative practices between DRPs that could result in inefficiencies in the repair process that could impact the performance of a shop. The survey will take into account the number of repairs a shop does each month, and the number of DRP relationships it has as a result. Questions look at administration tasks, such as how many photos are required by each DRP on a collision loss, and then compared to the bodyshop’s preferred number of photos for that particular claim. December October 2017 collision Repair 83
Mitchell launches AI estimating review tool Mitchell has announced the launch of Mitchell WorkCenter Assisted Review, which the company says is the first integrated workflow solution to leverage artificial intelligence (AI) for the estimate review process. By using visual computing to analyze photos, the solution uses machine-learning technology to help identify incorrect replace or repair decisions. Mitchell says this helps insurers review more estimates in less time, while refining estimating guidelines and consistency. A statement from Mitchell says the technology will help to reduce thousands of hours spent on review time, as well as allowing for more accurate and consistent estimates. Mitchell WorkCenter Assisted Review aims to benefit operational efficiency by improving and maintaining review accuracy, even as claims volume increases. It is also expected to save reviewer time by identifying potential repair or replace errors. The company first announced the project with Tractable, an AI solution firm, less than a year ago. When asked how the software would help shop owners, Mitchell’s Repair Sales and Service Vice-President Jack Rozint told Collision Repair magazine that the system has been “designed to support human decision making” and “improving the accuracy of decisions.”
Jack Rozint of Mitchell notes the software offers a second opinion, and that actual decisions should be left to an actual human who may be able to spot something that the computer missed.
Rozint was keen to add that the software was a second opinion, and that the actual repair or replace decision should be left to an actual human who may be able to spot something that the computer missed. Mitchell WorkCenter Assisted Review would deliver suggestions with a “confidence level” on whether a specific part on a new repair order should be repaired or replaced. These decisions would be entirely based on the archive of past photos and estimates, which means the system gets smarter as more people use it over time. Shops would need to enter accurate data and clear photos to contribute to increasing accuracy from the software. Rozint added that he did not have a date yet on when the software could be launched for collision repair shop owners.
CARSTAR on track for 1,000 shops Michael Macaluso sat down recently with Collision Repair magazine to talk about the company’s expansion progress.
CARSTAR is currently on track to reach its fiveyear target of 1,000 shops across North America, according to President Michael Macaluso. By the end of the year, the company, which currently operates 575 stores, will have added more than 100 new locations to its footprint of North American shops, with the aim that it will have more than 1,000 shops open by 2022. The main driving force of the expansion will be across the US. CARSTAR is currently located in 37 US states, but Macaluso says there is “white space” for more opportunities throughout the country. “CARSTAR is currently operating in 37 states across the US, so there is a lot of opportunity for growth throughout the country. 84 collision Repair collisionrepairmag.com
By 2019 we expect to have over 700 locations across North America and we are looking to accelerate that growth even further,” Macaluso said in a recent interview with Collision Repair magazine. Macaluso points out that despite a focus on US growth, there are still plenty of opportunities throughout Canada. The company is targeting locations such as Regina, Fort McMurray and certain areas across British Columbia to drive growth throughout Canada. CARSTAR is particularly focused on working with existing partners and franchisees to open multiple locations. In fact, 75 percent of growth throughout Canada comes from the company’s existing franchisees taking on new locations. Despite the fairly aggressive expansion drive, Macaluso comments the target is not “growth at all costs.” “Our five-year plan to open 1,000 new locations across North America is aggressive but it’s not growth at all costs. We are looking for the right partners, in the right locations and at the right time,” he said. In terms of near-future goals, CARSTAR aims to have 700 locations open across North America by 2019.
John Eagle to help promote OEM procedures after lawsuit John Eagle Collision Center and attorney Todd Tracy of Tracy Law Firm have “agreed to work together today to improve safety standards in the nation’s collision repair industry,” according to a joint press release. The announcement follows a Dallas county civil jury’s verdict, which ordered the Texas-based repairer to pay $31.5 million USD in damages after an “improper repair” was held to be liable for the severity of the crash of a 2010 Honda Fit in 2013. Matthew and Marcia Seebachan were travelling in the Fit when a Toyota Tundra, travelling in the other lane, hydroplaned into their path. The Seebachan’s vehicle caught fire with the couple trapped inside.
John Eagle Collision Center in Dallas, Texas. The shop, which has been ordered to pay $31.5 million in a settlement due to repairs that didn’t match OEM standards, issued a joint statement with Tracy Law Firm saying it will help encourage other shops to follow the repair guidelines laid out by the OEMs.
The other driver was attributed with 25 percent of the blame, taking the total amount of damages to $42 million USD. However, experts for the plaintiffs successfully argued that the severity of the Seebachan’s injuries were due in large part to the bodyshop adhesive-bonding the Fit’s roof during an $8,500 hail repair. The repair was not in line with Honda’s OEM repair procedures, which demand a shop tack-weld the front and rear corner edges of the new roof before performing twoand-three-plate spot welds and MIG plug welds. Johnny Kloeckes, a CARSTAR MSO in Edmonton, believes that a judgment like this could easily happen in Canada, if shops aren’t following the OEM procedures. “That’s the root cause. The technician didn’t follow the OEM procedures. They knew he was using glue, and they thought that was as good or better than the OEM method,” he said. Kloeckes also has advice for shops who want to protect themselves from liability. “Learn how to research. On the shop level, the appraisers have to learn to research, the production manager has to learn to research and the technicians have to learn to research. You have to accept that at least for now, it’s going to be hard to get paid for that time. It’s just something you are going to have to do. Consider it a good investment,” he added. Randy Weber, owner of CSN Walkerton, also commented on the verdict: “This could absolutely have a knock-on effect in Canada. It reinstates the importance of following the OEM process and I’d hope that, in turn, it would have a positive impact for the industry in the country and raise awareness of working to the book.” According to the joint press statement from John Eagle Collision Center and Tracy Law Firm. John Eagle wanted to
Part of the documentation provided by plaintiff consultant Neil Hannemann shows where, in his opinion, the failure of the roof of the Seebachans’ 2010 Honda Fit during a crash compromised the overall structure and collision energy management of the vehicle.
settle the case, but his insurers forced the company to go to trial. “Mr. Tracy acknowledged that despite Mr. Eagle’s sincere desire to settle the claim, his insurance carriers elected to proceed with the trial,” it said. It went on to add that Eagle has pledged to “encourage the collision repair industry across the nation to follow OEM bulletins instead of insurance companies’ mandates when they repair vehicles.” “We salute John Eagle for his leadership in the wake of this tragedy to act as a safety beacon for the collision repair industry,” said Tracy. It is believed the two parties are likely to come to a settlement agreement rather than proceed with a lengthy appeals process, although it’s possible the case could still be appealed. Meanwhile, according to a report by our US-based content partner, Repairer Driven News, the Auto Body Association of Texas plans to start holding its members to a higher “standard of safety.” The association doesn’t yet have an official plan, although it is possible members could be asked to take an oath of some sort.
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CCS Fall Network meeting focuses on insurance performance Consolidated Collision Services (CCS) recently held its Fall Network Meeting at the Paramount EventSpace in Woodbridge, Ontario, with a focus on insurance KPIs and industry trends. Facilitated by Mike Beier, General Manager of CCS, the one-day event featured a presentation by Mike Firman, Vendor Relations Manager of Auto Supply Chain, Ontario Region for Aviva Canada, a new insurance partner for CCS. Firman discussed Aviva’s standard operating procedures (SOPs), insurance guidelines and a general insurance market overview followed by a question and answer session for audience members. Wendy Hillier, of Hillier Consulting, also presented. She spoke about various insurance industry related topics including a presentation on market disruptors in the insurance world. Beier provided the group with an update on the growth of the CCS Network sharing its current market strategy and an overview of plans for 2018 and beyond. A total of 55 members attended the event, representing 36 different dealers within the CCS group. Seven of the attendees were new members experiencing their first CCS performance meeting.
55 members attended the Consolidated Collision Services (CCS) Fall Network Meeting in Woodbridge, Ontario.
One of those new members Ray Lavoie, Collision Centre manager at Forbes GM in Waterloo stated “The CCS network meeting was filled with innovative dealer and collision centre managers who were willing and excited to exchange ideas and best practices. It’s a great place to learn from my fellow colleagues as well as network with like minded industry people”. Craig Kirby, Business Improvement Manager at CCS said: “I think the biggest outcome of the meeting for us was that our members have embraced “what we are doing and what we are trying to achieve, ideas like creating the best customer experience for all”. The day included an invite-only lunch where members were able to catch up with fellow colleagues as well as connect with industry vendors such as BASF, 3M Canada, Norton to name a few.
CCS is operated by Consolidated Dealers Co-operative based in Woodbridge, Ontario. The network is a new car dealer only collision repair organization and currently has 60 new car dealer collision centres in three provinces, representing more than 140 new car dealers across Ontario, Alberta and Manitoba. Further details about CCS can be found at ccsdealers.com. The organization will host its spring 2018 Performance Group Meeting on April 11-12 in Niagara Falls. The two-day event will be held in conjunction with ACE (Automotive Conference and Exposition) the Consolidated Dealers and Trillium Auto Dealers Associations (TADA) annual convention. Additional information can be found at automotiveconferenceandexpo.ca.
AWAKE! opens eyes to gender disparity The Advancing Women in Automotive Knowledge Exchange program (AWAKE!) event took place in Edmonton, Alberta. The event focused on giving women in the industry the opportunity to network with their peers and colleagues and share their perspectives. “We need AWAKE because women are underrepresented in the automotive sector, and there’s a labour gap that we need to fill,” said France Daviault, Senior Director of Stakeholder Relations France Daviault, Senior Director, Stakeholder Relations for AIA at AIA Canada. “This is not a Canada, at the Advancing Women in Automotive Knowledge women’s issue, this is an indusExchange (AWAKE!) event in Edmonton. try issue, and we want to work together to solve it.” The event featured two preCanada partnered with Status of Women of sentations. The first was by Daviault, with Canada to look at the experiences of women a discussion titled, “Addressing the Labour working in the automotive aftermarket in Crunch.” Throughout, she largely focused an attempt to gain a better understanding on AIA’s program, AWAKE. In 2015, AIA of their perceptions and experiences, and 86 collision Repair collisionrepairmag.com
examine existing recruitment, retention and advancement practices. Since then, research has been conducted, a report published, a mentorship program has been created, and soon an HR Tool Kit will be available to help the industry address the issue of diversity in the workplace. Daviault’s presentation touched on the AIA’s Labour Market Intelligence Tool, AutoConnect. AutoConnect is a website for the automotive aftermarket industry that will show the labour shortages and surpluses; compensation data; skills level and training requirements and much more. Executive coach, Shoana Prasad, then gave a presentation titled “Your Personal Brand Legacy.” Her presentation discussed the intricacies of building a legacy and tips on how to strengthen your personal brand.
CAA calls for provincial regulation of towing industry in Ontario The Canadian Automobile Association South Central Ontario (CAA SCO) is calling on the Ontario government to make provincial regulation of the towing industry a priority. The Ontario-based organization, which is part of the CAA, said the move comes after “continued instances” of “harrowing” stories from motorists involving “unscrupulous” tow truck drivers on Ontario roads. In a statement released on October 18, CAA SCO said while changes to the Consumer Protection Act took effect on January 1, 2017, problems persist with consumers being charged excess amounts and/or tow truck drivers not adhering to the new laws. The organization claims that over the course of 2017 there have been several media reports sharing stories of consumers experiencing issues with tow truck drivers, such as being unable to pay by credit card and not being taken to their destination of choice. “There currently isn’t a centralized forum for consumers to file complaints if they have been overcharged or subject to other problems with service,” said Elliott Silverstein, Manager of Government Relations at CAA SCO. “As a result, motorists are reaching out to police, municipalities and other outlets leading to an inconsistent process across Ontario. Provincial regulation would ensure much needed consistency and clarity for consumers.” In August 2017, CAA partnered with research firm Ipsos Reid to conduct a survey of Ontario drivers to determine their knowledge of their own rights in these situtations, and the rules and regulations for the towing industry. The organization said the research indicated that motorists are largely unfamiliar with their rights and do not feel overly protected. Towing operators were also surveyed, and CAA SCO says
The CAA SCO has called on the Ontario government for provincial regulation of the towing industry.
the drivers surveyed supported the provincial government establishing rules and regulations that would be consistent in every municipality across the province. Results from the survey showed that 51 percent of respondents said they felt educated about their rights if they required assistance today and 53 percent of respondents were not aware that costs and requirements for towing differ across Ontario. Only one person in 10 was aware that tow trucks are regulated at the municipal level. When asked about their chief concerns regarding towing, 76 percent of respondents said “being charged an unreasonably high fee,” 75 percent said “having to wait a long time,” 64 percent cited “being misled and told by drivers that insurance will cover costs when it does not,” and 61 percent were concerned about “being towed to a different location than the one specified.”
Westshore Towing helps food bank after truck crash Westshore Towing helped out local food banks when the firm refused to throw away the food in a crashed truck. The truck, which was heading to grocery stores with a Loblaw Companies trailer full of food, crashed on the Trans-Canada Highway between Millstream and Six Mile roads on Vancouver Island. The owner of Westshore Towing, David LeQuesne, responded to the crash and revealed that he was told to throw away the food that was inside the trailer. “I said ‘hang on,’” LeQuesne said. “We have the food bank here in the community. They told me to throw it out, nobody needs it, nobody wants it.” He disagreed with that assessment. LeQuesne said he “knew who needed it” and took it upon himself to deliver the truck’s food to the Royal Canadian Legion Branch Number 91 in Langford. The International Brotherhood of Electrical Workers also helped unload the items once they arrived at the branch. Gail Ireland, President and Co-ordinator of the Goldstream Food Bank Society, which is located in the basement of the Royal Canadian Legion
Westshore Towing owner David LeQuesne helps unload food donations.
Branch Number 91 and municipalities across Vancouver Island, said she is “extremely grateful” that LeQuesne thought of their organization. The society said it will split the donation between Goldstream Food Bank, the Sooke Food Bank and the Mill Bay Food Bank, which are located across the island. No other vehicles were involved in the crash and no injuries were reported. December august 2013 2017 collision Repair 89
Recycling News....................91 - 95
ARPAC preps for the future at annual conference
Gabriel Lussier (centre) accepts an award for excellence and innovation at the most recent ARPAC conference.
ARPAC, Québec’s provincial automotive recycling association, has held its annual conference. The conference took place Friday September 23 and continued on Saturday September 24. This year’s event was organized by the Centre du Camion Lussier in Ste-Julie, Québec. The progressive automotive recycling facility is a member of ARPAC and is also celebrating its 50th anniversary this year. The founder and owner of Centre du Camion Lussier, Gabriel Lussier, was honoured during the banquet held on the Saturday evening of the conference, receiving the “ARPAC Award for Excellence and Innovation Roger Fugère Sr.” The theme
for the evening was “The 60s and 70s.” During the Annual General Meeting of Shareholders on Friday morning, members adopted a resolution to incorporate the 3RV Participation into all members as of January 1, 2018. This amount will be added to each used car and truck parts invoices, in order to pay a part of the investments that are constantly made by the recyclers in Reduction at source, Reuse, Recycling and Valorisation of the vehicles. More than 202 people took part in the visit to the Centre du Camion Lussier and the 27 exhibitor booths during the afternoon. An excellent meal was served on site by food trucks.
Fenix Parts reports year end results Fenix Parts has announced its fourth quarter and full year 2016 results. Consolidated net revenues were $33.2 million for the fourth quarter of 2016, compared to $32.5 million in the third quarter of 2016, and $31.3 million on a pro forma combined basis in the fourth quarter of 2015. Sales of recycled OEM products were $29.1 million for the fourth quarter of 2016, up 5 percent from $27.8 million in the third quarter of 2016 and up 9 percent from $26.7 million on a pro forma combined basis in the fourth quarter of 2015, including sales contributed by Ocean County, Butler and Tri-City (which the company acquired during the second half of 2015) during both comparative periods. Sales from other ancillary products, including scrap metal, were $4.1 million in the fourth quarter of 2016, compared to $4.7 million in the third quarter of 2016 and $4.1 million in the fourth quarter of 2015 on a pro forma combined basis. Sales from the Company’s Canadian operations were $3.5 million in the fourth quarter of 2016, up slightly compared to $3.3 million for the third quarter of 2016 and down slightly compared to $3.7 million in the fourth quarter of 2015. “Fourth quarter 2016 revenues increased sequentially due to improved sales to repair shop customers, partially offset by lower scrap metal revenues during the period as a result of lower volumes. Adjusted Operating Income increased to $0.5 million, despite continued high professional fees. We want to thank our shareholders for their patience during this arduous process of completing our first audit with our new auditors and filing our 10-K for 2016. With this audit base now achieved, we are optimistic that our future filings can be made on a more timely basis,” said Kent Robertson, CEO of Fenix Parts.
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Recyclers touring the host facility, Centre du Camion Lussier.
Frédérique and Charlie Morin were the hit of the ARPAC conference, dancing up a storm on Saturday night. Frédérique is a recipient of one of the ARPAC Foundation’s charitable programs.
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A silent auction helped to raise funds for the ARPAC Foundation.
The ARPAC Foundation raised more than $ 42,700 over the weekend, thanks to generous donors, insurers, suppliers and recyclers, all united to help people in difficult situations, including the young Frédérique Morin who had a great time on the dance floor on Saturday evening with her sister Charlie and the automotive recyclers in attendance. It’s not a suprise that the two girls were a big hit. LKQ Pintendre will organize the next ARPAC conference, which will run from September 20 to the 23, 2018 in Lévis, Québec. ARPAC’s 50th anniversary convention will be held from October 14 to 17, 2021 at the Quebec City Convention Centre. These are two events no one should miss.
Mike Swift endorses PartCycle Technologies PartCycle Technologies has received an endorsement the Automotive Recyclers Association’s (ARA) 2015-2016 President, Mike Swift, owner of Swift’s Trails End Auto Recycling in Des Moines, and one of the professional automotive recyclers that sells through PartCycle.com. “As a professional automotive recycler since 1979, what I want to do is sell more parts,” says Swift, “And PartCycle is offering a flawless way to sell parts online. Not only that, but they’re promoting quality in the industry by upholding the standards ARA’s qualifications require.” Like the ARA, PartCycle is dedicated to advancing the automotive recycling industry through presenting new opportunities and promoting quality standards. At the recent ARA convention, PartCycle CEO Brandon Gillis took part in a panel discussion, speaking to the need for e-Commerce in the industry, and specifically to PartCycle. com, PartCycle’s turnkey solution for selling more parts online. Professional recyclers were able to visit PartCycle’s booth to see a live demonstration of PartCycle.com, learn about becoming a PartCycle Seller, and discuss how they can sell more parts online with PartCycle. Participants also learned about the quality standards PartCycle sets for part inventory and customer service; standards that have been developed based on ARA’s requirements of its members.
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Mike Swift, Past-President of the ARA.
“ARA is the global voice of the professional automotive industry and they set the bar very high for quality part inventory standards and customer service practices,” says Andy Alonso, PartCycle’s co-founder. “We support ARA’s goals and diligently work to advance their mission through our own high quality standards and online marketing efforts. Having this endorsement from ARA’s past president speaks to how PartCycle is working to lead the recycled automotive industry into the future of used part sales.” “Selling online is the future of the industry,” says Swift. “And PartCycle offers a way for us to sell more of our parts while promoting quality. It’s a win-win for the consumer and the professional recycler.”
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AARDA’s annual meeting busts attendance records The 2017 Alberta Automotive Auto Recyclers And Dismantlers Association (AARDA) annual meeting was held recently at the Grey Eagle Resort and Casino in Calgary. This year’s event saw a record number of participants with 95 attendees. The weekend began with an industry meeting. For the very first time the AARDA board met with executives from major body shop groups as well as data providers. The AARDA organized this meeting in order to discuss how members and shops can work together to increase used part usage in Alberta. The key message of this meeting was to develop a greater communication between AARDA members and their body shop customers. The convention was held on Saturday and opened with a presentation from Michael Wilson, CEO of the Automotive Recyclers Association. Wilson spoke at length about negative advertisements against the use of used parts. Also at the convention was the Tundra Take Back group, which updated members on the important work being done in northern communities to help clean up abandoned vehicles. Two members of the AARDA, Sara Brophy from Lake City Service and Calvin Kennedy from Aldon Auto Salvage, volunteered to travel to these communities. Saturday night saw the revival of an old time favourite event, the tappet cover races. John Bruner from Coreline was the winning driver, beating out second place finisher Dave Cohen from Western Auto parts in a close two-race final. Bruner generously donated his prize money towards setting up an award in honour of
Ian Hope, outgoing executive director receiving a plaque from Ken Sorensen, new executive director.
AARDA board: Back left – Terry Carter, Randy Montgomery, Steve Cox, Ron Campbell Front left – Dave Cohen, Raelene Day, Wendy Quick, Sarah Brophy, Kelly Popow.
Jack Cohen, who passed away earlier this month. If you would like to contribute to this award, you can contact AARDA Executive Director Ken Sorensen at admin@ aarda.com for more details. Ian Hope gave a presentation titled ‘Better Outcomes Through Your People Skills.’
This was Hope’s last conference as Assistant Director, a position he assumed when he stepped down in January of this year. Hope was awarded with a plaque for his years of service as the Executive Director of the AARDA. Next year’s conference will be held on September 21 and 22 of 2018 in Drumheller, Alberta.
Tappet cover racers, Harrys Auto Recycling Randy Montgomery on left vs Trapper Auto Parts Travis day on Right. 94 collision Repair collisionrepairmag.com
KAR Auction Services acquires remaining interest in TradeRev mobile app KAR Auction Services has acquired the remaining interest in Nth Gen Software (“TradeRev”), a mobile app and desktop solution that facilitates real-time dealer-to-dealer vehicle auctions. KAR purchased a 50 percent stake in TradeRev in 2014 and acquired the remaining interest recently for $50 million in cash and an additional $75 million over the next four years contingent on certain terms and conditions including TradeRev performance. TradeRev brings industry-leading mobile and digital technology to KAR’s portfolio of 250 whole cars and salvage auctions, floorplan financing solutions, and other ancillary and related services. KAR will further integrate those capabilities into TradeRev to expand its digital business and strengthen its share in the dealer-to-dealer market representing over 10 million annual transactions.
10 years. As President of TradeRev, she will focus on diversifying TradeRev’s product and service offerings and expanding TradeRev’s market footprint. Polak will also be promoted to the position of Chief Legal Officer and Secretary for KAR. She will be responsible for legal and corporate communications.
“I am thrilled for KAR, TradeRev and all of our employees,” said Polak. “Today marks a significant milestone in the digitization of vehicle remarketing and the beginning of a bright new era of innovation for our company. I am honoured and humbled to lead TradeRev and this incredible team into the future.”
“The digital revolution in remarketing has begun, and the acquisition of TradeRev ensures that KAR will maintain its strong leadership position in the mobile app and online auction space,” said Jim Hallett, Chairman and CEO of KAR. “As a former dealer, I believe TradeRev is the most powerful and innovative mobile app for dealers on the market. By injecting TradeRev with the full force of KAR’s technology, data, financing and service offerings, we plan to accelerate growth across North America and around the globe.” TradeRev offers fast, convenient access to high quality trade-in and commercial consignment inventory before it reaches wholesale physical auctions. The TradeRev mobile app mimics the physical auction setting, enabling dealers to launch and participate in live, one-hour auctions directly from their smartphone, tablet or desktop. Winning TradeRev bidders can complete the entire transaction within the app, including optional inspection, title and arbitration services and financing and transportation through KAR’s AFC and CarsArrive brands. Becca Polak will be leading TradeRev. Polak has served as KAR’s Executive VP for the last 95 collision Repair collisionrepairmag.com
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toppriority Access to the right data is crucial to our future By David Gold
’m on my way home from the Automotive Recyclers Association’s 74th Annual Convention and Exposition as I write this. This was my first convention as President of the ARA. It seems like a good time to reflect on the changing dynamics of the auto recycling industry. I recall a conversation at last year’s event where we got to reminiscing about how those before us were anxious about the introduction of what were new technologies at the time, like ABS and air bags, and how much of a challenge these would pose. It was around that period, when vehicles were becoming computers on wheels—in the early
right now to have the brightest minds collaborate consistently going forward. Prior to the convention, I reached out to a handful of auto recyclers and stakeholders in the industry for their input on what they believe ARA should be focusing on at this time. A number of people, including George Sapir and Sue Schauls, said that we need to prioritize getting OEM VIN decoding info from the manufacturers. I couldn’t agree more. Not having access to this is holding us back and preventing us from providing the best service and parts to our repair customers. This is an issue that should be of concern to everyone in
we’ve adapted to the idea that automotive technology is in constant evolution. 90s—when I first got into the business full time. I grew up wanting to go to the yard every chance I could. Even at a young age I knew there was opportunity and I loved every part of the business. I still love the business and I never miss an opportunity to attend events like the ARA Convention and network with my peers. These days, though, it’s not necessarily the new technology that has recyclers concerned. Like collision repairers, we’ve adapted to the idea that automotive technology is in constant evolution and we have to keep pace. Today, it seems like one of our top concerns is what I like to call the 800 lb gorilla in the room. That’s data. Specifically, who controls it and who has access to it. The key strategic pillars that the ARA is focused on seem to have started and stopped with all things data lately, whether its simply access to data or where our data goes and how it gets there. The ARA has put dealing with these questions at the top of our list of tasks. In addition to data, the strategic partnerships that we will improve and foster are top priorities. Over the years, many vendors to the industry have been helpful and approachable and this goes both ways. A plan is being put together 96 collision Repair collisionrepairmag.com
the automotive industry, including those at the OEM level. Some car companies are resistant to the idea, but not all of them. Chris Daglis of PARTnered Solutions noted that vehicle technology will change the face of our industry over the next 10 to 20 years. As I said earlier, auto recyclers are used to this, but that doesn’t mean we don’t need to change our operations to suit the new technology. Daglis pointed out that we need to consider new part types that we will be able to harvest off vehicles. He thinks engines and transmissions will begin to diminish as major sellers in this period, but that many other tech components will begin to become real opportunities. That brings us back to data. With the right access, we can continue to serve the repair industry and the public. I’m confident we’ll get there. David Gold of Standard Auto Wreckers is a founding member of Fenix Parts and holds the title of President for Canadian Operations. Locations in Canada include Toronto, Port Hope and Ottawa. He can be reached at 416-286-8686.
the last word
Advertiser Index Company
Rightpath Analyzing the journey happens before the first step
AADCO Auto Parts........................94 AkzoNobel.......................................7 ARSLAN ........................................ 17 Assured Automotive...................... 51 Auto Quip Canada...........................8 Automotive Recyclers of Canada...95 Axalta......................................... OBC BETAG ...........................................25 Canadian Hail Repair.....................32 Car-Part.com.................................66 Carcone’s Auto Recycling.............93 Cardinal Couriers........................... 81 CARSTAR Canada......................... 57 Collision 360..................................52 Consolidated Collision Services .. 87 Color Compass..............................34 D&E Distributors............................83 Dominion Sure Seal.......................36 FBS Distribution.............................50 Finixa..............................................45 Fix Auto Canada............................58 Formula Honda..............................62 Garmat........................................... 78 Global Finishing Solutions.............35 Impact Auto Auctions.................... 97 Island Clean Air.............................. 15 Logel’s Auto Parts ........................ 90 Martech..........................................84 Mitchell..................................... 28-29 Ontario College of Trades............. 11 PFAFF Automotive...........................4 Polyvance........................................9 PPG...............................................2,3 Pro Spot International...................48 RBL Products................................ 73 Rondex .......................................... 46 SATA Canada.................................30 Sherwin-Williams...........................42 Stark Auto Sales............................88 Steck Manufacturing.....................85 Symach..........................................39 Thorold Auto Parts........................92 Tiger Auto Parts..............................79 Toyota............................................. 13 UAP/NAPA...................................... 16 Valspar Refinish............................IBC Wedge Clamp.................................38 Wurth Canada................................ 70
By Mike Davey
’ve been giving a lot of thought to critical path analysis lately. This is basically a method of figuring out how to achieve a goal by looking at the steps you need to take in order to get there. Some steps have to come before others and the project can’t proceed until those steps are completed. These steps are critical, hence the name. Other steps may be needed for the overall success of the project, but don’t impact the other steps. These are sometimes referred to as having “total float.” A big part of the reason this has been on my mind lately is that my family recently moved to a new house. Our new home is just a few miles away from the old, but it was still a big undertaking. The critical path analysis doesn’t end when the move is complete. It becomes even more important. You can’t unpack the computer until you set up the desk, and you can’t set up the desk until you figure out where it’s going to go. You may need to do some rewiring once you’ve picked a location. It goes on like this until you’ve got everything mapped out. Critical path analysis is a powerful tool for business. Some of its earliest uses were for putting up skyscrapers. A big construction project often involves hundreds of people and tens of thousands of individual tasks. Each has to happen in the right order or the project grinds to a halt completely. Every repair order uses this, whether we think about it or not. You can’t paint before prep, and bodywork needs to come before that. Obviously the estimate needs to come before anything else. You can use this sort of analysis for larger projects, not just repair orders. For example, if you want to change your process, you’ll probably get the best results from looking at the goal and figuring out every single step you need to take before you start. Not only will it help you get to where you want to go, you’ll know right away if certain parts of the project are beginning to fall behind.
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One of the most powerful things about critical path analysis is how simple it is to set up. One of its disadvantages is that having everything laid out in front of you may lead to a false sense of confidence that you’ve thought of everything. First, define a specific goal. Just as an example, we’ll take a look at creating an aluminum repair area. List all of the activities you need to do to achieve this. Break everything down as small as you can. Don’t just list “research options and equipment.” Make it as specific as possible. Researching curtain walls, researching permanent walls and researching every type of equipment should be its own task. Once you’ve got that mapped out, it’s time to take a look at the dependencies, how the parts of the project relate to one another and which has to come first. You can’t really make a firm decision on air movement, for example, until you’ve got a good idea if you’re going with curtains or a closed room. After the dependencies come the milestones and deliverables. Your goal definition has provided you with the final deliverable of aluminum repair capability, but you should look at the steps along the way and find points you can designate as milestones. It’s up to you what you designate as milestones, but in my experience it’s better to have as many as possible, rather than just a few. The more milestones you have, the easier it will be to see if the project is going off track. In turn this enables you to step in and get it back on the path. Just like anything else in life, a new process is easier if you’ve got a path to follow. Mike Davey is the editor of Collision Repair magazine. He can be reached at 905-5490454 or via email at editor@ collisionrepairmag.com.