Collision Repair Magazine 17#4

RACE THROUGH NACE AUTOMECHANIKA: THE ULTIMATE VISITOR’S GUIDE!

INTERNATIONAL INTRIGUE

SECRETS REVEALED

Tow referral fees, and reporting fraud—a complete breakdown of CCIF’s anonymous survey.

The biggest names in the industry gather for the IBIS Conference in Bavaria.

SENSE AND SIMPLICITY

CLASH OF THE TITANS

Domenic Ieraci on building Simplicity Car Care’s brand identity.

Consolidation enters a new phase of mega buyouts. Who will survive?

TRUE GRIT

Peter Sziklai of Tsawwassen Collision makes a stand to ensure every repair is a safe one.

PLUS Uncovering Canada’s

collision repairer history; Rethinking the safety status quo; Andrew Marsh on why repairers are being blinded by technology & much, much more!

Volume 17, number 4 l August 2018

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$7.95

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Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2

CONTENTS

ON THE COVER 34 INDEPENDENT VOICE

Peter Sziklai has spent decades building up Tsawwassen Collision as a top-tier facility.

Now he is using the lessons he has learned to push for a new approach to the business of collision repairs.

VOLUME 17, ISSUE 4, AUGUST 2018

FEATURES 39 CANADA’S FIRST BODYSHOP

Our team digs through Canada’s history to rediscover the location of the first bodyshop!

50 CONSOLIDATION CHAOS

When it comes to consolidation, industry analyst Brad Mewes says the industry is at a crossroads. What businesses are prepared for the age of mega-buyouts?

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Nace Automechanika arrives in Georgia, and CRM has the complete breakdown of what to do and where to do it!

A peek inside one of the industry’s biggest annual show, complete with a guide to all the must-see events, pavillion details and much more!

NEWS 10 COLLISION REPAIR 83 RECYCLING

DEPARTMENTS 06 PUBLISHER’S PAGE by Darryl Simmons NACE Automechanika and SEMA. 26 WHO’S DRIVING? by Jay Perry Rethinking responsibilities.

48

Simplicity Car Care president Domenic Ieraci on building up a new name in the industry.

50

The next phase of industry consolidation have arrived, says Brad Mewes.

28 PRINCIPLES OF REPAIR by Peter Sziklai A new role for a new era.

43 HEALTH AND SAFETY by Theress Jachnychy Just because it has work, doesn’t mean it always will.

ON THE COVER: Tsawwassen Collision owner Peter Sziklai. Photography by Henri Tsai.

YOUR ONLINE SOURCE Canada’s collision repair information resource.

New articles and top news stories daily.

Visit www.collisionrepairmag.com.

HAVE YOUR SAY. We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to editor@collisionrepairmag.com.

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48 EXECUTIVE VISION with Domenic Ieraci Mixing business acumen and bold ideas.

88 RECYCLING by David Gold The ARA’s new executive director.

90 FINAL WORD by Jeff Sanford The independent spirit triumphs.

PUBLISHER’S PAGE

SPECTACULAR SHOWS

PUBLISHER DARRYL SIMMONS (647) 409-7070 publisher@collisionrepairmag.com

NACE Automechanika and SEMA approach

EDITOR GIDEON SCANLON (905) 370-0101 gideon@mediamatters.ca

By Darryl Simmons

ART DIRECTOR MICHELLE MILLER (905) 370-0101 michelle@mediamatters.ca

T

here’s nothing like a good trade show to fan flames of passion for collision repair. And with the exciting line-up of seminars, courses and networking events NACE Automechanika and SEMA are the perfect opportunities to connect, learn and grow.

This is probably one of the most exciting and challenging times in the collision repair industry and those at the top of their game are best poised to reap the myriad of rewards by leading the way. And one of the best ways to know what’s going on in the world, as well as your own backyard,

same questions. All you have to do is ask and you’ll be knee deep in conversation. To make things easier for you our editors have put together an in-depth guide to NACE Automechanika starting on page 56.

In October we’ll be at SEMA as well. I’m often asked what is the difference between the shows and if attendance at both is needed.

First off, a huge “Yes!” for attending both. It’s a bit like the difference between hearing Bono play in a café and a U2 concert at a Superbowl stadium. Each caters to a different audience, but true fans, like those passionate about their business, will go to both. NACE Auto-

EACH CATERS TO DIFFERENT AUDIENCE...

BUT TRUE FANS WILL GO TO BOTH. are found at trade shows. On that score, it runs neck-and-neck with reading Collision Repair magazine, but nothing can replace the personal interactions, the hands-on experiences with equipment and the seminars and training sessions that are offered at the premiere trade shows. This way of learning continues to separate the progressives from the complacent. Anyone who thinks this industry, its technology, make-up and business model is the same old, same old, is out of touch.

Just around the corner is NACE Automechanika in Atlanta. If you haven’t taken a serious look at the line-up of training sessions, then you need to do a service to yourself and do so pronto! Everything is on the agenda, from a practical course on aluminum to new trends in insurance to the issues on the forefront of all shops…. certification and accreditation. Best of all, if it’s not on the official schedule, but on your mind, you will be surrounded by information resources and people asking the

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mechanika is about collision repair. Period. If you see someone on the show floor or in a seminar, I will lay odds he or she is a repairer and as such shares the same questions, concerns and challenges as you do. I look at it as a more intimate show. Sure it’s smaller, but it’s the quality not quantity that counts if you’re a shop owner or manager. SEMA on the other hand is big. Really big. Big as in more than 100,000 people packed big. And this is good too because if it’s in the industry, it’s at SEMA. Of course we’ll be there in full force at both shows so please make a point to drop by our booth and let us know what you’re up to. We love to chat on and off the record and welcome every opportunity we get to connect with you. See you at the shows!

STAFF WRITERS JEFF SANFORD jeff@collisionrepairmag.com JORDAN ARSENEAULT jordan@mediamatters.com VP INDUSTRY RELATIONS & ADVERTISING GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com MANAGING DIRECTOR, INTEGRATED BUSINESS SOLUTIONS ELLEN SMITH (416) 312-7446 ellen@mediamatters.ca PUBLISHER’S ASSISTANT LAURA JENSEN (647) 998-5677 laura@mediamatters.ca INDUSTRY RELATIONS ASSISTANT WANJA MANN (647) 998-5677 advertising@collisionrepairmag.com CONTRIBUTORS DAVID GOLD, PETER SZIKLAI, JAY PERRY, THERESA JACHNYCHY, KELVIN CAMPBELL, ERIN MCLAUGHLIN, ANDREW MARSH

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.

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NEWS

PEOPLE ON THE MOVE Fix Auto announced the promotion of Andy Raposo to the position of general manager for the Alberta and Saskatchewan networks. Raposo, who Andy Raposo joined the company as a strategic partner a year ago, will manage the strategic development of all Fix Automotive brands in Alberta and Saskatchewan. After starting out in a repair shop, Raposo spent a majority of his career on the insurance side of the industry. Raposo will replace former general manger Peter Polito.

Fix Auto announced the appointment of Thomas Maple to general manager for the British Columbia region. Maple began his journey with Fix Auto in 2012. Maple’s role will Thomas Maple be to pursue the strategic development of all Fix Automotive network brands in B.C. and to support operations of the current Fix Auto, NOVUS Glass and Speedy Auto Service locations Tony Mammone has been hired by CARSTAR to take on the role of zone director for Ontario. Mammone comes into the position with over 20 years of collision repair experience Tony Mammone under his belt, in addition to eight years with the Royal Canadian Navy.

Mammone started his career at Progressive Insurance as a field adjuster, before moving into various leadership roles on his way to joining CARSTAR. The Collision Electronic Commerce Association has announced the hiring of Stacey Phillips, as the national organization’s new marketing and communications coordinator. Stacey Philips Stacey has experience in the fields of both marketing and communication. Her new role will be vital in promoting the adoption of business message suite standards.

Stuart Faid has become the new Fix Auto regional head of business, Asia-Pacific region. With 25 years of experience, Faid has worked in virtually every Stuart Faid facet of the automotive industry. Before coming to Fix Auto Faid held the position of vice-president of sales, Middle East, Africa and Asia-Pacific for MSX International.

Automotive Industries Association (AIA) of Canada has appointed Rocco Neglia as a lead business development officer. His efforts will focus on the the Canadian Collision Indus- Rocco Neglia try Accreditation Program (CCIAP). Rocco Neglia has over 30 years of experience in the Property and Casualty Insurance industry and for the past 13 years he has held the position of Vice President of Claims for Economical Insurance. Neglia was active in the insurance industry and has served on various committees of the Insurance Bureau of Canada. He has also served as Chair of the Conestoga Chapter of the Insurance Institute of Ontario and Governor of the Insurance Institute of Canada.

AutoCanada has appointed Michael Rawluk as its new president. He will take over full responsibility over dealership operations, as well as associated functions including business Michael Rawluk intelligence, marketing and human resources. Until recently, Rawluk was the chief operating officer of the Birchwood Automotive Group’s 22 dealerships in Winnipeg, where he began his automotive career more than 15 years ago. In his new role, Rawluk will head AutoCanada dealership operations, in addition to other related business intelligence, marketing and human resources functions, according to the group.

The Auto Recyclers Association has announced that Sandy Blalock will be the organziation’s new CEO. She previously served as the interim CEO, Blalock, who

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hails from Santa Fe, New Mexico, has served in a number of executive positions at the organization, including as the AIA’s president in 2007.

Sandy Blalock An auto recycler since 1993, Blalock joined the ARA executive committee in 2005.

NEWS

Paint predilection predictions Automotive supplier BASF is using research and data to predict the future, at least when it comes to the colour of new vehicles.

The German chemical company has combined trends in both technology and society to predict fashionable future colours.

The result of this future gazing work is an automotive trends collection that includes an assortment of the 65 colours it believes will be popular in North America, the Asia-Pacific region, Europe, the Middle East and Africa, also known as the EMEA region.

BASF predicts that new North American cars purchased in 2022 will be most likely painted a deep blue colour that it is calling “Atomium Sky.” The prediction is based on trending interests in both science and space travel.

BASF uses data and trends to predict the future of car colours.

Car sharing has a role to play in future vehicle colours. As more people ditch their conventional commutes for shared autonomous units, BASF expects colours to be selected based on universal tastes.

BASF predicts “Kleur,” a heavily saturated and vibrant red, will be popular due to its high visibility.

BASF believes its new “Gray Ambivalence” will be a top choice in Asia, re-

flecting the region’s interest in artificial intelligence. In the EMEA region, BASF predicts a metallic anthracite shade called “The Urbanist” to be popular, as a reflection of human integration with technology.

Only time will tell if BASF has found a way of peaking into the future. Until then expect to see the typical black, white and silver vehicles occupying roads near you.

Major Milestone The new 1,765-square-metre facility opened in Sudbury, Ontario, offering complete collision and glass repair. The shop will be proficient in scanning and capable of accommodating oversized vehicles.

The new location is owned by local automotive dealers Vince Pollesel and Vince Palladin.

“Opening a collision repair facility made sense for us at this point, and it’s been an incredibly natural fit as CARSTAR holds a trusted reputation, known for providing premier services with dedicated team members,” said Pollesel.

Community minded, Vince Pollesel and Vince Palladino have historically contributed to the local hospital foundations. Now a part of the CARSTAR network they are

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CARSTAR continues to grow, with the announcement to open its 600th location.

anxious to add Cystic Fibrosis Canada to their fundraising efforts.

“It’s incredibly humbling to have people like this wanting to join the CARSTAR network as they see our values aligning,” said Michael Macaluso, CARSTAR President.

A grand opening will be held at the shop’s location, 440 Falconbridge Road, on July 19.The event will include food, music and a presentation by Cystic Fibrosis Canada. To reserve your spot, RSVP to communication@carstar.ca.

NEWS

NEWS

Tim MacDonald to Join Order of Canada President and chief executive officer of Ideal Supply, Tim MacDonald, will receive the country’s highest honour when he is recognized with the Order of Canada. He is being recognized with the honour “for his leadership in business and community initiatives in south-western Ontario, which have contributed to the economic and Tim MacDonald OC. social vitality of the region.”

MacDonald was also partly responsible for finding one of the Franklin Expeditions lost ships, as co-founder of the Research Foundation.

MacDonald will be recognized as a member of Canada with the designation of C.M. after his name. This is one of three levels under the order, with Macdonald’s designation recognizing contributions at a region level.

On top of being honoured with the order of Canada, MacDonald was also recognized with the Queen Elizabeth II Diamond Jubilee medal.

Ladies Night is a big hit for Fix Auto Stratford For many sons, learning about the basics of car maintenance from their fathers is almost as much of a rite of passage as getting a driver’s licence. Daughters are not always so lucky, making them a little more dependent on those who are in the know. It is a problem that Fix Auto Stratford owner Katie Tapley and her team In May, 30 women participated in Fix Auto are working on overcoming.

Stratford’s Ladies Night.

For the past few years, Tapley has been running an evening event, Ladies Night, where women are invited into the store after hours to learn some essential vehicle management skills. Last Wednesday, the team hosted the third such event – and it was a resounding success.

Close to 30 guests of all ages participated in the workshop, with some of the proceeds raised from the sale of the $20 tickets going to a local women’s shelter. Tapley was thrilled by the community’s continued interest in the program.

“It’s great to be able to give women the opportunity to learn some new vehicle maintenance skills in a no-pressure, fun learning environment.”

The event included a presentation from a local police constable sharing some general safe-driving tips. The participants were then split into groups to take part in some hands-on exercises on four cars lent by Discount Car & Truck Rental. The exercises covered how to check oil and other fluids, the best way to safely boost batteries with jumper cables, how and when to check tire pressure and how to use vehicle jacks.

AUGUST 2018 COLLISION REPAIR 13

NEWS

Axalta Awarded On-time deliveries are the cornerstone of Axalta’s business, a commitment recently recognized by NAPA Canada at its national sales meeting in Niagara Falls, Ontario. Axalta was awarded NAPA Canada’s Club 95 Award after exceeding the award’s 95-percent on-time delivery criteria by one percent.

“Our partnership with Axalta is instrumental to our success and has helped us become the preferred supplier for paint and body shop supplies,” said Tom Hunt, NAPA Canada vice president, product development.”The team at Axalta works closely with us to understand our needs and make sure we can always provide its quality products to our growing base of satisfied customers. It’s a pleasure to recognize its efforts in 2017 by presenting them with our prestigious NAPA Club 95 Award.”

On-time deliveries are an important factor for any business. But for body shops, any disruption in the supply chain can impact end users and may delay the delivery of a refinished vehicle to its owner. Furthermore, insurance providers measure the delivery performance of

Unica’s celebrates its second-straight victory at the 16th annual Fix Network Cup of Soccer.

VP Troy Weaver of Axalta North America refinish.

collision repair centres and reward the best ones with more business.

“We are honoured to receive the Club 95 Award for the third year in a row,” said Troy Weaver, vice president, Axalta North America refinish. “Dependability is so important in business.

It allows for planning, consistency and can impact your bottom line. We pride ourselves on being great partners to our customers like NAPA Canada, knowing that our success depends on their success.”

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It was a familiar name left standing at the end of this year’s Fix Auto soccer tournament, as Unica was crowned champion for a second straight year.

While most soccer fans around the globe had their eyes fixed on the opening games of the World Cup in Russia, fans who were also members of the collision repair community turned their eyes to Vaughan, Ontario, where Fix’s event was held.

The tournament began with a three-game round robin, followed by a semi final. In the end it was Unica defeating Wawanesa for the 2018 Fix Auto Cup. Ten teams competed in this year’s event, nine of which were Fix Auto insurance partners.

“The event provided a great opportunity for attendees to check out our event shops and network with staff,” brand manager Jamie Rodrigues said.

NEWS

NEWS

How Green is my Volvo

Volvo plans to use 25 percent recycled plastics in its vehicles.

Volvo has declared its plans to use recycled material to make up 25 percent of its vehicles’ plastic components by 2025. Volvos are currently made up of about five percent recycled plastic – to reach the five-fold increase, future Volvos will be made up of far more ground-up soda bottles, combs and once-loved toys.

“Volvo Cars is committed to minimizing its global environmental footprint,” Håkan Samuelsson, president and CEO of Volvo Cars, said on Monday.

Volvo unveiled a test model of its XC60 T8 plug-in hybrid SUV in Gothenburg, Sweden, that it said looks identical to the existing car except that some of its plastic parts were made from recycled material. The publicity stunt appears to have garnered international approval, with the United Nations officially backing Volvo’s plan.

It is not the only forward-thinking goal Volvo is striving to reach in the near future. In May, corporate officials announced plans to use only plastics that could be recycled and said the company would release electric versions of all new cars launched after 2019. Last month Volvo said its aim was that fully electric cars would make up half its global sales by 2025.

Nissan has used a new alloy in the production of the Infiniti QX50 for the past two months.

Nissan’s New Steel

Nissan has announced plans to use a cutting-edge steel alloy in new models. The result of a multimillion-dollar research project, Nissan steel was funded by a joint venture between the OEM and Japanese firm Nippon Steel & Sumito Metal.

Nissan say that the new material will allow it to both keep its costs low and help it reach its fuel economy targets. It describes the new material as being highly formable and lightweight with exceptional tensile strength.

While some repairers might feel this glowing review is not an entirely objective appraisal, they may be in a unique position to find out. While the exact details of the alloy and how it is made are not yet public knowledge, it can already be found in repair centres. The steel has been used in the production of North American Infiniti QX50s since March.

JUNE 2018 COLLISION REPAIR 15

REGIONAL NEWS | BRITISH COLUMBIA

Okanagan College hosts Discovery Day for students Okanagan College recently held one of its Discovery Day events for the students of School District 22 in Vernon. The college has been hosting the Discovery Days for nearly a decade at several of its campuses.

Occasions such as these often allow for that crucial first contact to happen, where a student has the potential to realize their love for collision repair.

“I started this event to give youth an opportunity to get a practical picture of what it’s like to work in a variety of trades, give them hands on experience building projects and using tools,” says Dianne Holm, marketing and recruitment, Okanagan College. “Some kids do not have access to tools at home and this helps to familiarize them and given them a better understanding of their own capabilities.”

Once a year the surrounding school districts are given the option to bring their students to Okanagan for Discovery Day, where the students can sign up for three to five hands-on sessions. When schools are unable make the trip, the college loads everything the event needs into a trailer and brings it

Annual Discovery Day at Okanagan College.

directly to them. “Students that come to our Kelowna event are grades 9-12 and when we go out to the districts we invite grade 7-12 and the community to attend,” says Holm.

Attendees of the Discovery Day events are also treated with the opportunity to use the college’s virtual reality equipment, which has recently been integrated into the trade programs curriculum.

“It’s pretty cool to see the focus on youths

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faces as they working with tools and then their smiles of accomplishment,” she says. “This has been a big hit for parents who attend. It demystifies the trades for them and they are more likely to encourage their kids to look at trades careers in the future.”

Holm concluded by saying that the college often sees the students who discover their passion for the trades return for other events and eventually enrol in the program of their choice.

ALBERTA | REGIONAL NEWS

Edmonton hosts 2018 Skills Canada National Competition National accolades and bragging rights were on the line as Canada’s top automotive students and apprentices showcased their prowess, facing off at 2018 Skills Canada National Competition in June.

The 24th annual event, which took place between June 4-5 at the Edmonton Expo Centre, gathered competition winners from across the country for the right to be crowned national champion.

The two day event, which aims to promote students to pursue a sustainable career in trades, features individual competitions that can last up to .2 hours per day. Approximately 550 students and apprentices competed in the 40 skilled trade and technology competitions.

Ontario led the way in this year’s competition, with 16 individual winners. Alberta and Quebec shared second place with 12 winners. In addition to national titles, competitors also

Nova Scotian Nicole Hamilton claimed a gold medal in car painting.

contended for the opportunity to join Team Canada at the WorldSkills competition, which takes place in Russia next year.

The event featured competitions for several key industry trades, including car painting, welding and auto body repair.

The Gold medals for car painting were claimed by Nicole Hamilton of Nova Scotia and Henry Kasper of Manitoba.Alberta’s Justin Meldrum and Quebec’s Charles Antoine White

claimed the top awards for welding. The first place winners in the auto repair competition were Marc-Andre Benoit of New Brunswick and David Messerschmid of Manitoba.

This year’s competition was sponsored by the Auto Career Start program. Launched just last week by the Canadian Auto Dealership Association, the Auto Career Start program aims to connect automotive workers with leading employers.

Color Compass plays host in Calgary and Edmonton Color Compass hosted two summer equipment shows in June, held in Calgary and Edmonton.

The shows focused on the necessary equipment required for OEM certifications and included live demonstrations from some of the industry’s top equipment manufacturers. The two events welcomed Color Compass as the exclusive Car-O-Liner distributor in Alberta, adding to its distribution lines in BC, Saskatchewan and Manitoba. Industry leading equipment vendors Pro Spot Welding, BETAG, LAUNCH Scanning, and SATA, were also in attendance.

Both events featured 50 attendees, with Calgary kicking off the festivities on June, 19 at the Color Compass Corporation Training Centre.

“Thank you to all that attended the Calgary event, the feedback that we received clearly shows that there is an appetite and desire to learn more about the OEM criteria and the specific pieces of equipment needed to attain the certifications,” said Jamie Corbeil, Color Compass’s general manager of sales for southern Alberta.

Two days later the Edmonton Color Compass Corporation Training Centre played host to show number two.

“The Edmonton event was a success; we would like to thank the attendees as well as the equipment vendors on hand that provided so much insight on the new OEM requirements and the features of their great products,” said John Morello, sales manager of Carlson Body Shop Supply in northern Alberta.

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REGIONAL NEWS | SASKATCHEWAN

Enterprising knaves An auto dealership in Wetaskiwin, Saskatchewan, recently suffered a theft of some $70,000 worth of tires and rims.

Grim warning

Saskatchewan Government Insurance is concerned about a the number of stolen vehicles in the province over the past five years. To highlight the risks played by car thieves, SGI is displaying recovered stolen vehicles to the public.

In 2012, the public insurer saw just 2000 claims. In 2017 that number was 2,825, costing the public insurer nearly $30 million in payouts. While 90 percent of stolen vehicles are recovered by the police, about

half are found to be so damaged that they are written off.

In a statement, the company said that the risk to the public went deeper than inconvienience, with stolen vehicles often used to commit more serious crimes and are often recklessly driven in escapes from the police.

SGI also released a list of suggestions designed to limit the risk of car theft. From not leaving the car with keys inside to locking the door and keeping valuables out of view from the outside.

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The thieves struck over a recent weekend, hitting the Denham Ford dealership between Saturday evening and Monday morning. According to police someone out there is sitting on a stash of fifty-six tires and rims The local RCMP anticipates that these tires and rims may, “... surface on social network sites or in pawn shops. The public is reminded to be very cautious when any on-line deal appears ‘too good to be true’.”

REGIONAL NEWS | MANITOBA

MPI to up premiums Manitoba Public Insurance has proposed premium increases that will cost the average driver about $30 per vehicle per annum -- a 2.2 percent hike.

MPI made the request to the Public Utilities Board in June, who are likely to approve it at some point this summer. With more than half-a-million clients, the proposal

could net the insurer more than $15 million.

While the cross-the-board hike may be unpopular with the average driver, the MPI is under significant pressure to bolster its capital reserves in the wake of the collapse of British Columbia’s own public insurance company last year. While the move may be fiscally responsible, it does not live up to the goals of the MPI, which aims to make worse drivers pay

increased premiums, protecting the better ones from rate hikes. Last year, the insurer also chose to push for a cross-the-board rate hike of 3.7 percent.

“We fully recognize that our customers expect us to deliver comprehensive auto insurance coverage and service at rates that are affordable, predictable and stable over time,” the insurance company’s president Ben Graham said in a press release.

Grand Theft Auto: Winnipeg There has been a rash of vehicle thefts in Winnipeg, police statistics have revealed.

Police have said that the provice’s rates of vehicle theft spiked by more than 50 percent from May to June. Why? Hot weather may have a lot to do with it.

An unusual number of these thefts have occurred in vehicles left unlocked with the engine still running and the air conditioning left on.

While it may be difficult for repairers to recognize a stolen vehicle in their shop without the tell-tale marks left by forced entry, collision repair community members should report any suspicious activity to police.

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REGIONAL NEWS | ONTARIO

Ontarians set to face brunt of Trump tariff job losses—TD Bank Senior Economist Canada could be at stake to lose 160,000 jobs, in the event that Trump makes good on his threat to slap tariffs on Canadian cars and parts.

“Almost all of these losses would occur in Ontario,” said Brian DePratto, senior economist for TD bank in an interview with the CBC. Approximately 1.7 million Canadians work in the manufacturing industry, of that number 771,000 preside in Ontario alone.

“This shock thus means there is the potential of losing nearly one in 10 of the jobs in this sector, or one in five in Ontario,” said DePratto.

DePratto forecasts, based on tariffs levels the Trump administration placed on aluminum and steel, a ten percent tariff on car parts, accompanied by an even more drastic 25 percent burden on fully assembled vehicles.

The automotive sector won’t be the only part of the Canadian economy to feel the sting from the North American trade war.

According to DePratto the “deadweight

Brian DePratto, TD’s senior economist.

loss” that would inevitably occur, resulting in higher prices and lower consumer confidence, would outweigh any possible government expenditure put back into the damaged sectors.

Along with jobs, the Canadian dollar stands to lose in the event of the proposed tariffs. DePratto estimates that in a worst case

scenario the Canadian dollar could drop as low as 15 percent from where it stands now.

As of now, nothing is for sure. DePratto is optimistic that both neighbouring countries will come to a compromise. In the event that they don’t, Canadians should be prepared for the consequences.

“The importance of the auto sector and of trade more generally to the Canadian economy underscores the magnitude of the challenges facing Canada’s trade negotiators,” DePratto told the broadcaster.

FinishMaster’s inagural Tradeshow

Improving collision centre key performance indicators was the focal point of discussions at the inaugural Finishmaster Ontario Automotive & Industrial Paint Tradeshow Thursday night.

The event kicked off with a technological symposium hosted

by AutoHouse Technologies, where 35 first come guests were treated to presentations from 3M, CosmosSync, SDS Smart and Bodyshop Connect.

The evening was put on by the four FinishMaster locations in Ontario - Ottawa, Guelph, Scarborough and North York - andprovided guests with a unique opportunity to network, while also taking advantage of special pricing on products.

“It was nice to have the opportunity to compare processes and common issues with other industry professionals,” says Tim Kielburger, the floor supervisor of Tony Graham Collision Centre, who traveled from Ottawa to attend the event. “It was also nice to put hands on new the products and discuss new ideas.”

Prizes were handed out in the later portion of the night, with catering for the event being provided by Rodney’s Oyster House.

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QUEBÉC | REGIONAL NEWS

Distraction crackdown Quebec drivers should put down their phones or risk facing the province’s wrath, and some new, painful fines.

Those caught using cellphones while driving will now recieve tickets of up to $600 and five demerit points. Those with cell-phone related scandals in their past face even more harsh responses, with police able to suspend their liscenses for up to a month. Until the end of June, the fines were capped at $100 and four points.

While the news may be less than welcome to the province’s drivers, their pedaling rivals will also see new fines. Cyclist caught wearing earbuds or using their phone will now be subject to $100 fines.

CCIF Montreal shatters attendance records.

The Verbom facility in Sherbrooke, Quebec.

In May, the Canadian Collision Industry Forum (CCIF) held a record-breaking meeting with more than 400 progressive collision repairers, manufacturers and suppliers coming together to tackle some of the most pressing issues facing the industry.

Packed into the Marriott Airport Hotel, the meeting was a veritable who’s who of the automotive aftermarket. Kicking off with a networking event on Thursday evening, new friendships were founded and old friends had the chance to reconnect.

As the conference drew to a close, Marcil delivered closing remarks thanking participants for their efforts over the course of the forum, and the importance of CCIF’s role within the collision repair community.

Check out our in-depth coverage of the conference on page 40!

AUGUST 2018 COLLISION REPAIR 23

ATLANTIC | REGIONAL NEWS

Collision Repair magazine makes waves Fredericton-based newspaper The Daily Gleaner ran a story featuring CARSTAR Fredericton general manager Steve Knox holding up a copy of the most recent edition of Collision Repair magazine.

“A Fredericton-based expert in auto body repair has been recognized for his hard work promoting safety and education within the business,” the story, which celebrated

Knox’s cover story in the magazine, began.

While it might look like a piece on a resident’s appearance on a trade magazine cover as a sure sign of a slow news day, Knox is something of a local celebrity.

One of the directors - and an occasional performer - at the Fredricton Country Music Showcase, his good work in the collision repair community comes as as much of a surprise to Frederictonians as his cultural acheivements are to his colleagues on the CCIF steering committee.

For Gideon Scanlon, CRM’s new editor and the writer of the cover story on Steve Knox, the article is a reminder that the collision repair industry doesn’t exist outside of the broader community.

“The Daily Gleaner was happy to cover Steve for the same reason we were. He is a fantastic community-builder.” says Scanlon. “Whether it be his work with the Fredericton musical scene, or in the collision repair community.”

CARSTAR Yarmouth cuts its ribbon The facility, owned by Mark Pottier and managed by Mathew Elliot, bolsters a team of employees with extensive industry experience, some upwards of 15 years.

“Customer service is a top priority for us and we want people who walk into our facility to feel comfortable and be confident in knowing that we will take care of them,” says Elliott. “It was crucial for us to build a team of people who have proven experience but who also care about the outcomes of their work and want to be a part of this close knit team with like-minded values.”

The 630 square metre facility is located 160 Stars road in Yarmouth Nova Scotia.

Primary services provided at the location include full collision and glass repairs, including glass replacement.

CARSTAR Yarmouth has committed to putting money back into their community, including donations to their charity of choice, Cystic Fibrosis Canada.

“Love of community spills out of CARSTAR Yarmouth, with Mark assembling an incredibly hardworking team who are committed to providing the kind of premier customer experience CARSTAR is known for,” says Dave Meery, CARSTAR’s eastern zone director. “Walking into CARSTAR Yarmouth, you feel a level of comfort and familiarity that puts you at ease, which is exactly what we want our customers to feel.”

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WHO’S DRIVING?

WHO’S DRIVING #101 The Right Ingredients

By Jay Perry

C

omplexity is a part of business. Being able to simplify complexity is a sign of genius. If the leader cannot simplify for everyone in the organization and the complexities inherent in the business, people will become confused, disillusioned, misguided or worse, disheartened. There are four basics you can consider that will help in guiding oneself to develop this essential attribute.

Trust is where everything positive starts. Obviously trust is not some state or condition that you walk into

Permission to make mistakes is something that at first blush may seem at odds to the previous paragraph. It is not. Mistakes are made each day by all people. It isn’t about not making mistakes. It is about fast recognition, quick correction and expeditious redirection of efforts so mistakes are not repeated. We are going to make mistakes. Get over it. Moreover, giving permission to your people to make those mistakes is what will drive innovation. Innovation is what keeps you ahead. More often than not we see organizations that rely on “the

“THERE IS HARDLY A WEEK THAT GOES BY WHEN SOME POLITICAL OR BUSINESS “LEADER” MUST MAKE THE MEA CULPA SPEECH. AS MUCH AS THEY THINK IT IS TAKING RESPONSIBILITY FOR SOME EGREGIOUS ACTION, IT IS NOT.” like a coffee shop. It must be earned. You earn trust by having consistent behaviour over time. It is earned by doing what you say you are going to do. Even when it is expensive, it is worth it in the long run. If you consistently deliver on your word you will have earned trust of the people that you need to help you get to where you want to go. One slip up and you have to start all over again. It is that important and that delicate. So be very mindful and objective when it comes to matters of trust.

Responsibility is a word thrown around like candy samples. There is hardly a week that goes by when some political or business “leader” must make the mea culpa speech. As much as they think it is taking responsibility for some egregious action, it is not. Taking responsibility starts a long time before things go off the rails and people get caught doing something wrong. It means spending time with people insuring that you know them and their capabilities as well as their desires and which direction the moral compass points. That’s taking responsibility.

In its truest form it is proactive, laying ground work for a foundation that can hold the weight and withstand pressure when the winds of change blow strongest.

26 COLLISION REPAIR COLLISIONREPAIRMAG.COM

way we do it here” speeches that penalize creativity and experimentation.You must budget and plan for innovative thoughts that will help you stay ahead and most of all, you can drive the appropriate attitude down throughout the organization by celebrating the attempts that fail.

Demonstrate advocacy at every opportunity. When you become completely familiar with the word advocate you realize that it too can be simplified. It is a person that protects and looks after the interests of the company. It is the opposite of recklessly taking risk. If the entire team understands this then they too make the right decisions balancing all of the above mentioned ingredients thus adding up to a creative, fun place to innovate and end up on top. It is the way you remain the one 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 jayperry@a-b-c-inc.com.

PRINCIPLES OF REPAIR

COLLISION REPAIR RESEARCHER A New Position

By Peter Sziklai

A

s technicians we get paid for fixing cars, which means time is best used repairing damage.

Having clear, concise information readily available is crucial to a technician’s efficiency. A printout of an automated estimate does not provide enough information to properly repair a modern car. Having to spend valuable time researching creates major issues when trying to turn a profit.

At times information can be easily obtained, but it is never a guarantee. With that being said, productivity is always at risk.

and then write an estimate. The procedure I envision will be to have one person take photos and make basic notes. This information then goes to the collision repair researcher who develops a complete profile of the vehicle and damage. This will include a full option list for that specific vehicle, material types, electronic issues, repair/replace guidelines, battery and systems disconnect/connect, cautions about possible damage through energy transfer, electronic concerns, one time use parts and a variety of other issues missed, or only addressed reactively when a problem arises.

THE PROCEDURE I ENVISION WILL BE TO HAVE ONE PERSON TAKE PHOTOS AND MAKE BASIC NOTES. THIS INFORMATION THEN GOES TO THE COLLISION REPAIR RESEARCHER WHO DEVELOPS A COMPLETE PROFILE OF THE VEHICLE AND DAMAGE. Unfortunately, possessing the training necessary to properly gather and document information in a timely manner is a rare commodity in the collision repair industry.

On May 28th a post-graduate trained systems engineer was added to the staff of Tsawwassen Collision in the new role of collision repair researcher. This engineer has been reporting to me and will continue to do so until we have developed a solid documentation and reporting prototype. At that point the reporting relationship will change and he will become part of the operations team.

Effectively that will be the beta test stage.

The objective is to greatly improve the productivity and accuracy of both the repair report writers (the 2018 upgrade of ‘estimator’) and the techs on the floor. The process will look to become more fluid, as new reporting models are developed. Two weeks in and we are already seeing formatting options and communications lines which were not part of the initial overview.

Very broadly, the norm now is for the estimator to look at the car, do some research under time restraints 28 COLLISION REPAIR COLLISIONREPAIRMAG.COM

He will not be assigning costs or searching for parts.

The completed damage and procedures report then goes to the repair report writer (who may be the same person who gathered the initial information.)

The Repair Report (the 2018 upgrade of ‘estimate’) that this person develops, using many of the skills that today’s estimators possess, is then used by the technician to complete a proper repair. The final report will closely resemble a full document that can be presented for payment.

I can’t guarantee the success of this idea, but I am confident we are not completely off base. Regardless of what happens, valuable information will be gained on how to better understand this problem in the future.

Peter Sziklai is the owner of Tsawwassen Collision, an independent collision repair shop near Vancouver. Actively involved in the industry since 1982, he is the founder of the Ready For its Next Accident project (rfina.ca), which focuses on fostering an awareness of the principles of repair.

He can be reached at peter@tcltd.pro.

EVENT

AUGUST 2018 COLLISION REPAIR 31

ADAS

BLIND LEADINGTHE BLIND Profit from automotive industry chaos

By Andrew Marsh, engineering director, ‘ezimethods.com’

T

he vehicle is our focal point. For each of our customers it’s unique and complex, and there are no generic ways to repair it. The vehicle manufacturer constructs each vehicle from a series of system level building blocks, but all too often the analytical data that feeds vehicle registration and VIN recognition are unable to identify just which building blocks are present in the vehicle that’s been damaged. Repairers are blind, insurers are blind and consumers are blind.

For many years the collision repair business has remained very diagnostic-panel-centric, and yet vehicle complexity is not rooted in the panel itself but in electronic hardware, electronic firmware and software. Take advanced driver assistance systems (ADAS) as an illustration of how new systems arrive and spread out across the spectrum of vehicles.

of space. How about up to 6m wide by 2m deep in front of the vehicle and 14m wide by eight metres deep behind the vehicle?

What do you mean, you need to repair other vehicles in your shop? In addition, the calibration process will be completed with a diagnostics tool.

2. Dynamic, from 2008 onwards. This involves very simple initial setup followed by a road test during which the system calibrates from a laptop/diagnostic tool running software. This approach requires one driver and another person to look after the calibration whilst driving.

3. Plug and play, from 2017 onwards. The approach uses self-adapting sensor technology. To date, the only applications have appeared on rear radar modules, but more are coming.

Wait! Remember that earlier forward-facing cameras could

THE ADAS SENSOR SUITE AND SUPPORTING TECHNOLOGY CAN CHANGE RADICALLY OVER THE LIFESPAN OF A MODEL. ADAS typically use one or more forward-facing cameras, which can perceive objects up to 500m ahead. These are complemented by multiple range modules with optimal range finding typically set at 60m and 250m, and occasionally early forms of lidar to take care of short-range finding, below 10m. The rear of the vehicle can have a reverse camera and up to three radar modules, taking care of the driver’s blind spot. Overall, ADAS are vehicle-defence systems that assist the driver in minimizing the chances of collision – but the driver has overall control. ADAS can also “talk” to the engine management system, transmission and electric power steering, SRS, seat belts and electronically controlled brakes. Yes, this really is a LAN. However, there have been at least three technology revolutions since the first ADAS models appeared in 2001, and even if a vehicle in a given model year could have had these systems, the reality is that while a few were fitted out with many sensors, most were not. So just what is in the vehicle now on its way to a repairer? More and more every year. Just consider that a 2019 Mercedes-Benz A class W177 may have as many sensors fitted to it as a flagship 2014 Mercedes S class W222. That’s the evolving democratization of safety.

OK, so the first problem is to find out what’s in place, and after the repair, the second is to ensure those systems work.

There are three approaches to calibration: 1. Static, from 2001 onwards. This involves using target boards and setting up the vehicle as if it were undergoing four-wheel alignment. Except some OEMs need a bit of space -- quite a lot

“see” the object but had no idea how far away it was. Now they do. This illustrates another issue. The ADAS sensor suite and supporting technology can change radically over the lifespan of a model, which means we have to – have to – use OEM methods to understand what needs to be done and when.

The opportunity? While OEMs move on to ever better technology, older editions end up for sale at ever lower prices. This means we can see bargain-basement sensor technology on some models, which happily live under “ radar or “camera” technology banners but are a throwback. And before long, today’s state-ofthe-art technology will follow in those footsteps. Guess who will support every single version of these systems model year by model year? Collision repairers and motor insurers! Learning about these systems is not easy, but it’s part of what we have to do in our sector. We will be out here supporting vehicles long, long after the initial new vehicle sale.

Here’s the final thought. Do invest in software capability, but don’t forget existing skills or continuous professional development, because in time those will become more valuable.

There is so much more to getting the job done properly than just plugging in a diagnostic “box.”

Andrew Marsh is the engineering director of ‘ezimethods.com’, which he co-founded in 2011. It provides OEM based repair methods and information via a user friendly and cost effective web service. It is now sold globally, including North America, Australia and the U.K.

AUGUST 2018 COLLISION REPAIR 33

PROFILES OF SUCCESS

TRUE

GRIT

BY GIDEON SCANLON

“W

Located in Tsawwassen, a community just south of the city of Vancouver, Peter Sziklai founded Tsawwassen Collision in 1995.

34 COLLISION REPAIR COLLISIONREPAIRMAG.COM

hen it comes to getting our vehicles repaired, there are a lot of bad habits to break. Repairers, insurers and even drivers have done things in a particular way for 50 years, but times have changed.

It is extremely difficult to change an entrenched culture, but it is also vital if we are going to keep our roads safe.”

At 66, Peter Sziklai is not afraid to speak his mind. As the founder of Tsawwassen Collision in British Columbia and a Canadian Collision Industry Forum Steering Committee member, Sziklai has made a habit of expressing opinions that, while perhaps widely shared, are often left unspoken. For the past two years, he has been a vocal advocate for a wholesale change in the way recyclers, insurers and even drivers think about their vehicles.

“I have two serious concerns about the collision repair industry. First, there is a culture of obliviousness about the need for up-to-date training among business leaders,” says Sziklai, who got his start in the industry in 1982.

“Second, the insurance companies, in their assessments of what is and isn’t required to fix a vehicle, are working from an outdated model.”

PROFILES OF SUCCESS

Operating outside of a network has not been a barrier for Tsawassen Collision’s growth. The facility has 18 service bays, and is in the top ten percent of collision repair facilities in the province by volume of repairs performed.

Both are subjects that Sziklai writes about regularly on his online industry advocacy website Ready for its Next Accident? (rfina. ca). Taking a broadly pragmatic line, his posts are not written to hector repairers about their failings, but rather to make a convincing case for the need to invest in training and ensuring that every vehicle is given a safe repair.

In any career, there can be a cost to speaking out about problems with the status quo, with outspokenness ruining many-a-career and reputation. As an independent owner

with a stable business, however, Sziklai feels he is in a privileged position to speak frankly.

He was not always prepared to be such a vocal industry advocate. During the 1990s and the early 2000s he had devoted himself to building up Tsawwassen Collision into a stable business and by 2010, life had fallen into a comfortable pattern.

His business had grown, providing a sound livelihood for him and his highly effective 15-person staff. Rather than becoming embroiled in day-to-day concerns, Sziklai then viewed his primary responsibility as providing as stress-

Brent, one of Tsawwassen Collision’s in-house glass experts, hard at work. In 1995, the same year it was founded, the Insurance Company of British Columbia accredited the facility. Today it accredited for auto glass and repairs. In mid-2016, fewer than one-intwenty B.C. repair facilities had become involved in the I-CAR program. Tsawwassen Collision was the ninth Gold Class facility in the province. This Spring, it became Canada’s first ProFirst facility, the OEM certification program for Honda and Acura.

free an environment for his team as possible.

It wasn’t until 2016 that Sziklai felt encouraged to become more vocal within the industry after two jolting experiences.

“I had an encounter with a representative from an OEM who said: ‘I used to run an independent shop that did millions of dollars in repairs. The customers loved us and the insurers loved us. But what I didn’t know was that every repair we did was being done wrong,’” Sziklai recalls.

The second incident happened as Sziklai was reading Business Insider, and saw an article where General Motors CEO was quoted as saying ,“I believe the auto industry will change more in the next five-to-10 years than in the past 50.” It was a sentiment that Sziklai felt closely mirrored his own perspective.

The incidents stirred something in Sziklai.

He decided that he had to find a way to share his ideas with fellow repairers. As a novice industry advocate, he was not entirely certain of the best approach, but a career as a businessman had given him the tools to forge ahead with the idea.

“I can’t tell you how many times my team has rolled their eyes when I’ve announced a new policy,” Sziklai says, “and they are often either abandoned or significantly changed after a few weeks—but without risking failure, we could never hope to accomplish anything beyond the status quo.”

To that end, Sziklai enlisted the help of a web designer to start the Ready For Its Next Accident page. In his first post, he laid out his broad concerns about the industry and its sluggish response to change.

AUGUST 2018 COLLISION REPAIR 35

PROFILES OF SUCCESS

Tsawwassen Collision’s success has come from its ability to build up a strong reputation with the local community. The facility can boast a 5-star rating on Facebook.

“The physical structure of today’s vehicles and the electronics supporting the safety features are vastly more complicated than they were five years ago,” Sziklai wrote in July, 2016. “The move to these new methods has started ... [but] the industry is still dominated by repair methods that have been in use for 20 years.”

In the two years since the original posting, Sziklai has published more than 40 other pieces on the collision repair industry. Covering everything from procedural techniques to the politics of certifications and accreditation programs, Sziklai has not shied away from taking controversial position—ones that might seem unexpected from an independent operator.

On one occasion in January 2017, he praised banners for encouraging their members to obtain accreditation, writing that the “strong wave of banner shops becoming involved in the accreditation process will prompt progressive independents to also get involved, and this will be good for the industry and all vehicle owners.”

While his opinions may not always be shared by his peers, Sziklai has come to recognize the success of a piece by peoples’ reactions to it. “Something I have noticed is that when a piece is greeted with an uncomfortable silence, it’s because I’ve said something that has struck a chord.,” Part of the reason readers may react this way is, 36 COLLISION REPAIR COLLISIONREPAIRMAG.COM

Excestru mquiam et occabo. moluptio to em dolum necto est, il magnam soupta.

perhaps, the fact that Sziklai does not leave a tremendous amount of room for disagreement. In making his points, his articles stick to fact-based arguments—no surprise, given his interest in experimenting with new ideas.

Sziklai’s approach used to make him feel a little out-of-sync with some of his peers, but he now believes that repairers are more open to new ideas. While there may be no firm consensus about how independent repair shops should approach the sweeping changes

With a 15-person staff, Sziklai, who holds an MBA, is a firm believer that his most important job is to make sure everyone else can focus on what they do best.

facing the industry, many owners are actively exploring solutions.

“There are three approaches to handling these dramatic changes. The chug along crowd, who seem entirely oblivious to the situation, the ‘I don’t want to engage, so will just run it out’ group—which is not an entirely unreasonable business model. Then there is the third group, of which I am a member. We are the ones who know

PROFILES OF SUCCESS

Peter Sziklai in his office. The veteran owner is a member of the CCIF Steering Committee, the Delta Chamber of Commerce.

“Some may call it an independent streak, but I think I might just be stubborn. I think the team would agree.”

— Peter Sziklai

that we will have to make changes, but are still working out how. I am just stubborn enough to stick it out until we do.”

For his efforts in offering industry advice and solutions, his articles have certainly garnered him a lot of support in the community.

They have also forced some collision repairers to grapple with hard truths. On more than one occasion, industry peers have asked him why he is bothering to pursue his crusade.

“Some may call it an independent streak, but I think I might just be stubborn,” says Peter Sziklai. “I think the team would agree.”

Rfina.ca went live in the summer of 2016. To date, the website has more than 40 posts. Last spring, Sziklai wrote his first column piece for Collision Repair magazine.

His column in this issue can be found on page 25.

Nina Uppal is one of Sziklai’s secret weapons.

He believes that strong support staff providing repairers accurate information are the key to making safe repairs and increasing productivity.

AUGUST 2018 COLLISION REPAIR 37

POSTERITY REPORT

LOST BUT NOT FORGOTTEN

Henry Seth Taylor with his Steam Buggy in Stanstead, Quebec in 1867.

The search for Canada’s first auto repairer

I

t is the high summer of 1867. From Halifax to Fort York, public celebrations are held in honour of Canada’s recent confederation. The most unusual of these festivals was held in Montreal.

Victorian children run hither and thither, chasing ribboned kites across the green. Corsetted young women, feint in the summer sun, take refuge in the shade of willow trees. Top-hatted young men, feeling a mixture of pride and guilt, wrongly blame themselves for being the cause of the swooning.

Red-coated soldiers march about to the ‘The Maple Leaf Forever’. The elderly sit and watch with a practiced sternness.

A whiz-bang-pop announced the arrival of the damnable Mr. Henry Seth Taylor. Worse still, he had brought his latest irritating contraption.

“Ladies and gentlemen, boys and girls, gather ‘round and allow me to present a new carriage for our new country,” the irrepressible watchmak-

BY GIDEON SCANLON

er-turned-showman began. “No longer will her majesty’s subject be forced to share our streets with horses. No longer will they soil our roads. The Steam Buggy will change the very course of history.

And you shall be among the first to see it demonstrated.”

With that, Mr. Taylor flipped a few levers and puffs of steam were released from the steam engine’s pipe. Irritated

or not, the crowd was fascinated. They unleashed a cheer as the machine began to role forward on its own accord. Even the driver of a carriage some distance in front of the Steam Buggy turned round to see what all the fuss was about. It was only when the horseless carriage approached his own that the driver began to regret his decision.

The Steam Buggy is now held in the Canadian Museum of Transportation.

AUGUST 2018 COLLISION REPAIR 39

POSTERITY REPORT

The Stanstead Opera House, built in 1901.

Henry Smith Taylor died in 1887, shortly after the invention of the internal combustion engine’s invention and use in automobiles.

While great stories have passed down from repairer to repairer, members of the industry have a terrible habit of forgetting to write them down.

40 COLLISION REPAIR COLLISIONREPAIRMAG.COM

“Out of the way, man, out of the way,” the inventor yelled, having realized there was not enough room to make the turn.

And then there was a thump, followed by the scream of an enormous kettle. For all Taylor’s inventiveness, he had forgotten to install any brakes.

While Taylor considered the day a failure, the collision repair community should not.

From the public festival, the remains of his precious Steam Buggy were spirited away to the blacksmith’s in Taylor’s home town of Stanstead, Quebec. There, the blacksmith, whose name remains lost to history, fixed the vehicle and unwittingly birthed Canada’s collision repair industry.

One hundred and fifty-one years later, to celebrate Canada Day, the staff of Collision Repair magazine settle on running a story highlighting the first collision repair facility in Canada. It quickly becomes apparent that there is a problem. While great stories have passed down from repairer to repairer, members of the industry have a terrible habit of forgetting to write them down. Historians, too, have been aloof to the need to preserve records about the industry’s beginnings, though there are two facilities that are generally recognized as likely candidates for the title of Canada’s first auto repair facilities.

According to the general consensus, the earliest plausible candidate would be the Mimna Company facility of Wardsville, Ontario. While the facility was producing vehicles from the 1890s, there is no clear indication that repairs were performed on site. In fact, with automobiles being a luxury reserved for only the wealthiest of Canadians, the care and maintenance of them was usually left up to chauffeurs. The other candidate is the Walkerville Wagon Factory in Windsor,

POSTERITY REPORT

The Olde Blacksmith’s Art Gallery in Stanstead, Quebec.

Ontario. Founded in 1904 by Ford Canada as a way of avoiding tariffs placed on American manufactured goods, records clearly indicate that Ford vehicles were not just manufactured, but also repaired on the site.

Unfortunately for the general consensus, it is dead wrong. Ample evidence exists that points to the fact that the Steam Buggy was repaired in the Stanstead Blacksmithy back in 1867. Not only did Smith return to his work demonstrating his strange machine by 1868, but he apparently thanked the blacksmith for his assistance. In fact, despite a number of accidents that rendered the vehicle inoperable, it continued to be displayed after short periods of convalescence in Stanstead.

While some might suggest that Taylor’s own watchmaking facility would be as likely a place for the repairs to be made, this would be implausible. Watchmaking tools of the time were designed to machine only malleable metals like tin, gold and silver. The invention was made with iron.

The blacksmithy - or rather blacksmity and and auto repair facility still exists, serving as an art gallery.

Presented with the evidence that the building was, in fact, Canada’s first

collision repair facility, owner and curator Gabriel Safdie is amused, but not entirely surprised.

“Stanstead has always been interested in new technology,” he says. “In fact, we were also the home of North America’s first movie theatre - in 1912.”

According to Safdie, Stanstead’s position as an English-language stronghold relatively close to Boston meant that the city grew very wealthy in the 19th century as a trading centre. It was with so many cross-border contacts and wealthy eccentrics on both sides of the border that likely encouraged an atmosphere of cultural and scientific striving. Despite the population never rising above 3000, the town was home to a respected prepratory school and an opera house, both of which still exist.

While the name of the blacksmith may have faded from memory, his actions do clearly mark him out as the first collision repairer in Canadian history. As for his pioneering employer, however, infamy was never far away. In fact, in the early 1870s, Taylor’s final drive in the Steam Buggy was reported in the newspapers. The inventor drove his brakeless machine down a hill, with predictable results. He jumped out, never to ride a horseless carriage again.

AUGUST 2018 COLLISION REPAIR 41

HEALTH AND SAFETY

Rest on your Laurels and you’ll get Pricked

L

et’s face it. Workplace Safety and Health isn’t one of those hot topics that grabs repairers’ or management’s attention, even if it is legislated and the socially responsible thing to do.Why’s that?

Is it skepticism about the effectiveness of programs to prevent workplace accidents?

Maybe it has to do with not having the time to put a program in place or that it’s too

The Gateway Autobody team is more informed about safety issues, with a staff-lead team hosting public meetings to discuss concerns.

expensive? Perhaps its because no one at the business has had a work-related accident recently; or the belief that safety is common sense, so a formal program isn’t necessary?

Whatever the reason might be, the call for workplace safety and health programs is not going away. Despite generations of improvements in Canadian collision repair facilities no business, small or large, is im-

mune to workplace hazards, accidents or causing damage to someone’s health. Safety is not accidental: most mishaps happen because they are not prevented.

So, what will it take for shop owners to get on board? A major incident at work? A human connection to a loved one or friend injured at their workplace? A solid business case? Likely any of these situations may cause one to reexamine how to improve safety at work.

For there to be change, however, safety must become state of mind and habit forming. Workplaces with successful health and saftey programs will tell you a cultural transformation is needed, and this takes time. Visible leadership is imperative to a successful launch, maintenance and in time, momentum towards the program’s growth.

Kelly Kostynyk, owner of the Manitoba SafeWork Certified business Gateway Autobody, says the reason for the sluggishness of some facilities to get onboard with safety and health is not usually because of a lack of concern, but a genuine belief in the safety of existing practices.

AUGUST 2018 COLLISION REPAIR 43

HEALTH AND SAFETY

Manitoba SafeWork Certified business Gateway Autobody first opened in 1953. Despite a strong record of shop-level safety, inspections soon showed it was time to rethink safety procedures.

“I thought because our shop today is so much safer than it was when my dad first opened the business in 1953 and throughout the decades since then, that we ran a safe operation,” says Kosynyk.

As a small business, Gateway Autobody did not have the expertise nor the time to create, develop, implement and grow a safety program so a safety officer was retained to provide guidance. Kostynyk was quickly relieved of his confidence after an initial inspection.

“It wasn’t until we started on this journey to safety certification that I realized there were so many other hazards I had not considered.”

The management team had to overcome employees’ initial cynicism after being informed the business was setting out to become safety certified.

Visible leadership is imperative for a successful launch of any health and safety initiative, and so a six-person employee-run committee was formed.

“I didn’t need any more convincing. I needed help with getting it done. This is where our safety officer, employee safety representative and workplace safety and health committee took over. All they needed from me is acknowledgement and continued support with their initiatives.”

“It wasn’t until we started on this journey to safety certification that I realized there were so many other hazards I had not considered.”

-Kelly Kosynyk Without widespread employee buy-in, however, it can be difficult to achieve the momentum needed to make a difference.

It took a few inspections—and management’s quick corrective actions dealing with employee-identified deficiencies and hazards—before the whole team was convinced to come on board.

Having an employee-led workplace safety and health committee also helped legitimize management’s sincerity and commitment to making work safer. Inspection results, job hazards analysis, accident and injury data were discussed over pizza lunches. Soon, the committee of six informally expanded to include all

44 COLLISION REPAIR COLLISIONREPAIRMAG.COM

staff as non-members who could observe the meetings.

While the safety officer started out working at the shop once a week, after a few months this was dialed back to once every two weeks. Today the officer visits on a monthly basis, to work on new safe work procedures, training, attend quarterly meetings and providing support during safety inspections and follow-up.

The Gateway Autobody team is more informed about safety issues, with a staff-lead team hosting public meetings to discuss concerns.

After a distinguished career in the not-for-profit sector, Jachnycky joined the family business in 2014. She has provided executive leadership to small, medium and large corporations, and worked with diverse client populations and professionals in the areas of strategic and operational planning, community development, administration and finance. Theresa holds a masters degree in health services administration & community medicine from the University of Alberta and a bachelor of arts degree from the University of Manitoba.

ADVERTORIAL

INSURANCE

W

hile there have been wells of ink spilled regarding the sometimes contentious relationship between insurers and bodyshops, very little attention is paid to how effectively the organizations can—and usually do—work together.

In fact, annoyed by this imbalance of coverage, Collision Repair magazine’s staff was considering ways to draw attention to insurer-bodyshop cooperation when our friends at Saskatchewan Government Insurance (SGI) sent us a note. It included a few of their favourite—and silliest—examples of occasions when bodyshops have alerted their teams to bogus claims.

SGI opens its records on the times bodyshops have busted bogus claims

What the Hail?

With a number of SGI-accredited repair shops authorized to perform appraisals, SGI has created a process aimed at assisting these shops in notifying the company when they find damage deemed suspicious.

In the aftermath of a hailstorm in Saskatoon, one enterprising customer brought his vehicle into an accredited shop for an appraisal, during which the shop noticed that the damage, supposedly from hail strikes, looked far more like a man-made act of sabotage than an unfortunate brush with airborne ice. Swiftly contacting SGI’s appraisal team, investigators took photos and collected information on the vehicle.

A day or two later, SGI received a suspiciously similar call from a second shop. Like the first, the damage, described as the result

For some criminally minded drivers, hail storms seem like the perfect cover for making fraudulent no-fault claims.

Collision Repair magazine is aggrieved to report that the unfortunate deer mentioned in this story was, in fact, Bambi.

of hail, had struck the bodyshop as looking man-made. Appraisal services headed over and, to no one’s surprise, discovered that the same customer had, presumably feeling dismayed by the reaction of the first shop, taken his vehicle to a second one in order to secure another estimate.

Presented with the photographs of the damage and with the opinion of repairers at both shops, the customer decided to withdraw the claim.

Oh Deer When a customer sought to make a claim for damage incurred to his vehicle after a collision with a deer,there was enough blood,fur and other evidence to make it appear, at first glance, that it was nothing but a routine, if grisly, situation.

Fortunately for SGI, the repairers at the shop were not so easily fooled. After finding small pieces of wood embedded in the damage portions of the vehicle, they quickly realized that things didn’t quite add up and passed their concerns on to SGI. In one of their messier assignments, SGI’s special investigation unit dug through the evidence, concluding that the driver had, in fact, hit a deer—albeit a dead one.

The full story eventually came to light.

Upon finding a dead deer, the determined fraudster had created the convincing scene by propping the carcass up against a wooden traffic barrier and deliberately running their vehicle into it.

Much to the chagrin of the would-be claimant, the $8,000 claim was denied.

AUGUST 2018 COLLISION REPAIR 47

EXECUTIVE VISION

INNOVATING THE FUT B

efore Simplicity Car care became the banner network it is today, company president Domenic Ieraci had a difficult decision to make of which dream to follow. The former marketing and international business student originally planned on starting up his own marketing company, but, chose instead to work within his family’s automotive repair business. Ultimately it was Ieraci’s love of cars that drove the decision. It’s safe to say that Ieraci made a great choice partnering up with cousins Domenic and Paul

Collision Repair magazine: Do you have

a particular goal in mind for the business in the next year? How about the next decade?

Domenic Ieraci:

Our company will continue to grow in Ontario as well as across Canada throughout the coming years. We see a tremendous opportunity to assist collision centre operators in Canada by providing a new and unique way to manage their businesses.

We will help elevate their presence in the marketplace by providing the training and support they need to be successful and unlock their greatest potential.

As a franchise business, we are focused on delivering a consistent product in a sustainable way. Our unified operating platform will enable us to provide unique solutions to motorists and our insurance partners as their needs evolve.

Moving forward, agility and speed of implementation are critical success factors for collision and auto care centres. We’re thinking differently about what it means to be a collision centre and the important role we play in the future of the automotive ecosystem.

With advanced technology and driverless features, vehicle complexity will be a constant theme that will demand significant training and investment.

As our network grows, it will enable us to move closer towards our vision of making car care simple and affordable for every vehicle owner in the world.

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Prochilo (who now serve as the CEO, and vice president of operations respectively) to take the family business and turn it into the multi-dimensional brand, Simplicity Car Care. In just a year’s time, the company has expanded to eleven franchise locations throughout Ontario.

The trio brings a vast amount of industry experience and expertise to the table, having worked within a family collision repair company that dates back over 50 years.

The Simplicity brand provides trusted total car care, which includes collision repair among other services.

CRM: What business icon has had the

most impact on your own approach to your work?

DI: There are many leaders with whom I admire for their character and impact on society. As it relates to my approach on business and personal life, I tend to study individuals that have been successful and significant in specific areas such as philanthropy, health and wellness, finance, and productivity.

I believe it’s imperative to have a wellrounded approach to your work and learn from the experts in their field. However, Jeff Bezos (the founder of Amazon) has had significant influence on my business philosophy. Never be complacent is a mantra that I have personally adopted from Jeff Bezos and one that our team at Simplicity Car Care lives by.

Here is a quote from Mr. Bezos that I believe not only applies to business but life in general, “What we need to do is always lean into the future; when the world changes around you and when it changes against you – what used to be a tail wind is now a head wind – you have to lean into that and figure out what to do because complaining isn’t a strategy.” – Jeff Bezos

CRM: What advice would you give to a young member of the industry eager to move into managerial ranks?

DI: I admire a young person willing to

take the next step in their career as it takes courage. I think there are always a few key fundamentals that can propel your career forward. Being coachable will show your current manager that you are willing and ready to learn. Any great professional athlete or successful business person will always remain coachable because they understand that it’s the key to continued growth.

Having a daily plan for personal development is also an important step to take. Long-term success is dependent upon your ability to learn and leverage the appropriate skills relating to your field. An individual in the collision repair industry with a desire to move from the shop floor into management would greatly benefit from learning some of the basics such as: Being an effective communicator, project management and leadership.

Lastly, you must always believe in yourself. In order for others to believe in you, you must first believe in yourself.

CRM: How would you describe your own leadership philosophy?

DI: My philosophy surrounding leadership has evolved over the years. I truly believe that the role of a leader is to serve others while adding value. To lead others well, we must help them to reach their potential.

That means being on their side, encouraging

EXECUTIVE VISION

URE OF CAR CARE

them, giving them power, and having clear and candid communication. Being able to navigate for others requires a leader to possess a positive attitude.

You’ve got to have faith that you can take your people all the way.

A good leader has a vision for the future and understands how to motivate others to help get there. I have always made a conscious effort to talk to the people who are at the grassroots level of the organization, to better understand what’s happening on a day to day basis. Every decision a leader makes can have an effect on the lives of each person in the organization. There is a big responsibility in that. The bottom line in leadership isn’t how far we advance ourselves but how far we advance others.

CRM: What is the biggest challenge facing the automotive aftermarket today?

DI: I can categorically say that technician shortage is the single biggest challenge our industry is experiencing today. There are several factors that have contributed to technician shortage over the years. This is not only a challenge affecting the Canadian market, but in the United States as well.

However, our industry is making positive inroads with the help of CCIF and the Collision Industry Education Committee. This committee consists of industry stake holders working together to create a sustainable national solution for attracting new technicians into the industry.

AUGUST 2018 COLLISION REPAIR 49

CLASH OF THE TITAN

BUSINESS STRATEGY

A NEW ERA OF INDUSTRY —WHO WILL BE LEFT

T

wo weeks ago, during his presentation at the 2018 IBIS summit, Brad Mewes drew heavily from a widely regarded economic theory called the consolidation curve, suggesting that consolidation in the North American sector was undergoing a fundamental—and inevitable—transition. If that sounds terribly technical, don’t worry.

As Mewes puts it, “Industries evolve in a very predictable way over time.”

For the benefit of readers unfamiliar with Graeme K. Deans, Fritz Kroeger and Stefan Zeisel 2002 Harvard Business Review article ‘The Consolidation Curve’, we have included a cheat sheet below this article. In brief, however, the basic idea is that consolidation strikes in four phases— opening, growth, focus and balance.

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In the opening stage, early entrants into an industry protect their ‘first mover’ advantage by aggressively pursuing growth. In the second stage, growth, major players begin to turn their size advantage towards swallowing smaller competitors en masse.

In the tertiary period, established industry behemoths focus on streamlining businesses and merging with other ‘great powers’. In the final stage, balancing, the near-total market dominance of a few businesses discourages them from pursuing growth-oriented strategies and encourages making non-aggression pacts with their peers.

If Mewes’ assertion is true, it would suggest that the major players in the North American collision repair market are going to redirect efforts away from swallowing up individual shops, and towards business streamlining and ‘mega buyouts’ of other big players. To make this point, he referred delegates to the industry’s position in 2015. Then, with market leaders growing at a 33 percent-per-annum pace, ambitious consolidation strategies had investors pouring in equity.

BUSINESS STRATEGY

“It was an intense period of growth and opportunity,” Mewes said.“Today, growth is far more strategic.”

In making his case, Mewes pointed to changes in North America’s largest franchises growth rates.While the pace for the ‘big four’ may have slowed, at 26 percent per annum, it is hardly sluggish. In fact, for two Canada-based members of the ‘big four’ club, the Fix Auto Network and Carstar, Mewes describes them as being “very active in the market.”

Nor has the availability of investor capital slackened. Mewes describes the fiscal situation today as featuring an “unprecedented amount of capital and dry powder[liquidity].”

S

But where in 2015, the big players were using capital reserves to fund acquisitions of small-scale facilities, today, they are often being used to pay down debt, and make improvements to existing operations—which, if the consolidation curve is of any use as a predictive tool, could be harbingers of a greater shift in strategy.

According to Mewes, the big players will soon start shedding the less profitable sides of their business, the profits filling the warchests required to complete massive buyouts—with the possibility of huge cross-border or transatlantic a distinct possibility.

CONSOLIDATION DAWNS STANDING AFTERWARD? STAGE 1: OPENING

THE INDUSTRY CONSOLIDATION LIFE CYCLE

I n this stage, the status quo of the market abruptly ends—often after the collapse of a monopoly, or a game-changing technological shift. As businesses becomes more able to thrive in the new market conditions that arise, they must secure growth by aggressively buying-out competitors. Rather than pursue profits, their focus is on revenue growth.

STAGE 2: SCALE With the major players already carving out huge chunks of the market, they compete with one another to buy out the minor players. Consolidation is ferocious, and the relative profitability of selling pushes many smaller firms out of the market.

STAGE 3: FOCUS S addled by the costs of rapid expansion, the big companies turn away from the increasingly expensive process of buying out smaller competitors. Now, they turn inwards, streamlining their businesses and refocusing on debt reduction and capital growth. Here, the cost of inefficiency weans out over-leveraged behemoths, allowing them to be bought out in so-called mega buyouts.

STAGE 4: BALANCE ith the market heavily dominated by only a few companies, efforts at significant W growth are eschewed for efforts to encourage market predictability. While the rise of Stage 4 businesses was fueled by their judicious growth, their fall comes from complacency. Investor interest is typically secured through dividends, and internal development is focused on continuous adaptation to the slightest shifts in the market, lest a sudden change break the well-established foundations of the business.

AUGUST 2018 COLLISION REPAIR 51

OEM ISSUES Windsor, Ontario. Often referred to as “South Detroit” by locals and pop groups alike, would be particularly hard hit by Trump’s proposed tariffs on vehicles.

Industry Interrupted Trump’s tariffs cast a long shadow across Canada’s auto industry

O

n Canada Day, Foreign Affairs Minister Chrystia Freeland introduced the largest retaliatory effort Canada has undertaken on trade in the post-war era. Depending on one’s perspective, the move was either a point of national pride or the cause of panic.

Within Canada, there is a tremendous amount of support for the move. Trumps June declaration of tariffs on Canadian steel and aluminum are a threat to the automotive industry in Canada, with some estimates suggesting that they could cost us upwards of 100,000 jobs. Surveys show that well over 90 percent of informed respondents saw them as necessary. Even Parliamentarians were of one mind on the need for a serious response.

They passed the actions unanimously.

Over the past few decades the global economy has only known a general trend toward more open trade and looser national barriers in terms of tariffs on products and commodities. This long march toward a more open global trade network ushered in the era of globalization that took off in the late-1980s and facilitated a golden era of trade across national borders.

By loosening tariffs price inflation was generally contained. In fact, the price for

many common household products actually declined over this era as cheaply produced Asian products flooded the global economy.

But now the general trend toward freer global trade is, arguably, at an end. The globalized free trade system that came into existence over the past few decades is seemingly being turned on a dime. And that’s worrying.

Policy makers in the post-World War II era sought to avoid a world trade system in which each country competes against

all others to block foreign exports. That kind of mercantilist trade environment was thought to promote conflict, worked against global peace. But now the Trump administration is threatening trade sanctions in a way that has not been the case in the modern era. His administration is threatening trade actions at several different levels, the primary impact of which has been to sew widespread confusion among business and government elites.

Aquila Pugnat Castora. Trump’s tariffs represent the lowest point in cross border relations since the war of 1812, when America invaded the Provinces of Upper and Lower Canada.

AUGUST 2018 COLLISION REPAIR 53

OEM ISSUES

Foreign Affairs Minister Chrystia Freeland introduced the largest retaliatory effort Canada has undertaken on trade in the post-war era.

How will the effects of this new global trade chaos pan out in terms of the Canadian auto aftermarket sector, particularly the collision repair industry? This is hard to say, but there are a couple potential outcomes that can be speculatively considered.

The tariffs applied by the Liberal government this past Canada Day are in retaliation to Trump tariffs on steel and aluminum.

These new tariffs on the basic commodities used to build auto bodies could, presumably, raise the cost of repair.

At some point higher prices for basic commodities such as steel and aluminum would filter into the cost of body panels and replacement parts. And that might be a concern for shop owners.

On the other hand, it could be that increases in the price of aluminum could see automakers slow the adoption of the lightweight, but expensive, metal into auto bodies. It is also worth noting that Trump has mused about the need to reform the accepted Obama-era CAFE mileage standards. The auto industry was on track to achieve a government mandate that cars get more than 50 miles to the gallon after 2020. It is widely assumed that requirement would have driven the adoption of aluminum into body panels. But if those Obama-era regulations are abandoned this would presumably slow the adoption of aluminum in auto bodies.

Another Trump threat is to apply a 25 percent tariff on autos imported into the U.S. As it is, more than 80 percent of Canadian vehicle production goes south of the border, suggesting such a tariff would a much more serious impact on the economy. While now unable to enact such as scheme without congressional approval, a draft bill leaked

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Former White House Communications Director Anthony Scaramucci was blunt in his criticism of the FART Act. “It Stinks.”

just two days before our national birthday revealed that he intends to change the rules.

The Fair and Reciprical Trade Act, or the FART Act as it is better known, would give the president the power to make unilateral trade decisions.

Were such tariffs to be introduced it is thought an auto town like Windsor would suffer. This could spell trouble for local collision repair shops. That area of the country has always enjoyed widespread vehicle ownership as a result of employee discounts from the OEMs. If OEM employment plunges, so too would the local economy.

But it would be likely that car sales across the country would slow in the wake of such a tariff. If Canada retaliated with a similar tariff one estimate is that $5,000 would be added to the cost of an average vehicle. That kind of sudden spike in costs would surely slow the sale of new vehicles.

Interestingly enough, the potential effect of slowing new car sales might be good for the collision repair sector. With fewer new cars being sold the adoption of ADAS systems into the national auto fleet would be slowed. Adoption of new aluminum vehicles might also slow as well.

That said, there are many unknowns in this phenomenon. As to make any guess just that, a guess. The current trade wars are so unexpected, being applied to industries that are so big and complex, that any predictions come with more than a bit of uncertainty.

The Trump era could signify the end of decades of closer global economic integration. Such a profound shift is something any business owner needs to keep an eye on in the years to come.

CONTINUING EDUCATION

The future trends module will preview the Lucid Air, a trail ride for Toyota and a new Volkswagen microbus.

WHAT’S NEXT FOR COLLISION REPAIR? I-CAR’s new course looks to the future

T

his year has seen a tremendous technological upheaval in the collision repair industry, one that will impact how the work is performed at every level. To help prime technicians for what is ahead this year, I-CAR has developed the Vehicle Technology and Trends 2018 course. It is a one-hour online course that covers new automotive features and collision repair procedures for a handful of 2018 car models. This includes North American, Asian and European vehicles. It also covers increasing manufacturer trends—focusing on the growing number of car makers turning to electric propulsion and more seriously considering autonomy in their vehicles. As well, it overviews advanced safety features, which are quickly becoming a staple in modern vehicles.

The course consists of five modules.

Module one, titled “Trends and Industry Influences” kicks off with an industry overview of new technology. Topics of discussion include using steel for light-weighting, directing the front upper rail downward, the trend toward pure electric vehicles, the ability to communicate with vehicles through smart phones and the growing standardization of advanced safety features.

BY ERIN MCLAUGHLIN

Module 1 – Trends and Industry Influences Module 2 – North American Vehicle Makers Module 3 – Asian Vehicle Makers Module 4 – European Vehicle Makers Module 5 – Near Future Trends

In module one, new equipment, materials and procedures are also covered for technicians using bumper tab pliers, nitrogen welding plastic and 3M Aerosol Cavity Wax. The next three modules focus on region-specific vehicle manufacturers. Module two, titled “North American Vehicle Makers” explores Canadian and U.S. vehicle manufacturers, including companies Ford Motor (the F-150), General Motors (the 100 percent steel Chevrolet Traverse) and Tesla Motors models with self-driving hardware.

Module three, titled “Asian Vehicle Makers” provides an overview of the Asian automotive market. It looks at Honda and Acura, and gives us a look at the 2018 Odyssey and three members of the Honda Clarity family. It

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examines Toyota’s high-selling Camry model for 2018 and Nissan’s new hybrid.

“European Vehicle Makers,” module 4, delves into vehicles from across the pond. Included in the conversation are the mixed-material Mercedes-Benz E-Class Coupe and Audi A8 for 2018. It also looks at the 2018 Volvo XC60 and Volvo’s commitment to go electric.

Module five is titled “Near Future Trends,” and participants of the course will study just that. This module previews the Lucid Air, a trail ride for Toyota, a new Volkswagen microbus and Mercedes-Benz high-definition headlamps.

I-CAR’s course can be a great solution for technicians and shop owners who want to stay ahead of the curve in this fast moving industry.

EVENT SPOTLIGHT

SOUTHERN HOSPITALITY

The

ULTIMATE GUIDE to

T

he event of the year is almost here. In early August, hundreds of automotive companies, and thousands of guests from across the globe will make their way to Atlanta for the 2018 NACE Automechanika.

Guests will congregate to learn from industry professionals and discuss the latest in technology and its impact on the automotive aftermarket industry.

Whether travelling down to Dixie for the event itself, or keeping up with it from afar, let this section be your guide.

We have included a detailed overview of the can’t-miss events, a map to keep you from getting lost on the exhibition floor and a handy-dandy cheat sheet containing all of the facts and figures you’ll want to know.

The Quick Facts • N ACE began in 1984, with the overall goal of bringing together buyers and sellers of automotive products and services in one venue offering both education and trade show activities.

• The Automechanika brand is the leading international meeting place for the automobile sector. As the world’s biggest trade fair for the automotive aftermarket, the Automechanika spotlights innovations and solutions in the fields of parts, systems, tuning, workshop equipment, bodywork & paintwork, car wash, IT & management, and the latest automobile services.

• This is the first NACE to be held in Georgia; home to over 3,500 international firms including KIA Motors and Porsche Cars North America.

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EVENT SPOTLIGHT

Visit us at booth

#2342!

Monday, August 6 •

8:00 a.m.-5:00 p.m.

Collision Repair Education Foundation Golf Tournament Location: Georgia World Congress Center

Tuesday, August 7 • 1:00 p.m.-5:00 p.m.

The Collision Industry Conference Open Mic Location: Georgia World Congress Center

Wednesday, August 8 •

8:00 a.m.-11:00 a.m.

Event: NACE Automechanika Commitment to Training Program Location: Georgia World Congress Center

•

8:00 a.m.-11:00 a.m.

Event: The Collision Industry Conference Open Mic Location: Georgia World Congress Center

• 8:15 a.m.-12:15 p.m.

Event: I-CAR Classes Location: Georgia World Congress Center

•

•

10:00 a.m.-4:00 p.m.

Event: NACE Automechanika Exhibit Floor Location: Georgia World Congress Center, Hall B1

•

1:00 p.m.-5:00 p.m.

Event: I-CAR Classes Location: Georgia World Congress Center

10:00 a.m.-4:00 p.m.

Event: Big R Exhibit Location: Georgia World Congress Center, Hall B2

•

4:00 p.m.-7:00 p.m.

Event: NACE Automechanika Commitment to Training Program Location: Georgia World Congress Center

•

10:00 a.m.-4:00 p.m.

Event: Rockin’ Rides Car Show Location: Georgia World Congress Center, Hall B2

•

4:30 p.m.-7:00 p.m.

Event: Opening Night Reception Location: College Football Hall of Fame

•

10:00 a.m.-4:00 p.m.

Event: NACE Automechanika Exhibit Floor Location: Georgia World Congress Center, Hall B1

•

1:00 p.m.-5:00 p.m.

Event: I-CAR Classes Location: Georgia World Congress Center

•

10:00 a.m.-4:00 p.m.

Event: Big R Exhibit Location: Georgia World Congress Center, Hall B2

•

10:00 a.m.-4:00 p.m.

Event: Rockin’ Rides Car Show Location: Georgia World Congress Center, Hall B2

•

4:00 p.m.-7:00 p.m.

Event: NACE Automechanika Commitment to Training Program Location: Georgia World Congress Center

Thursday, August 9 •

8:00 a.m.-11:00 am Event: NACE Automechanika Commitment to Training Program Location: Georgia World Congress Center

• 8:00 a.m.-12:00 p.m.

Event: I-CAR Classes Location: Georgia World Congress Center • 8:30 a.m.-7:00 p.m.

Event: MSO Symposium Location: Thomas Murphy Ballroom

• 4:00 p.m.-7:00 p.m.

Event: Rockin’ Rides Reception Location: Exhibit Floor AUGUST 2018 COLLISION REPAIR 59

EVENT SPOTLIGHT

Friday, August 10, 2018 •

8:00 a.m.-11:00 am Event: NACE Automechanika Commitment to Training Program Location: Georgia World Congress Center

• 10:00 a.m.-4:00 p.m.

Event: Career Day Exhibits Location: Exhibit Floor

• 8:00 a.m.-12:00 p.m.

Event: I-CAR Classes Location: Georgia World Congress Center

•

•

• 1:00 p.m.-5:00 p.m.

Event: I-CAR Classes Location: Georgia World Congress Center

10:00 a.m.-2:00 p.m.

Event: NACE Automechanika Exhibit Floor Location: Georgia World Congress Center, Hall B1

10:00 a.m.-4:00 p.m.

Event: Rockin’ Rides Car Show Location: Georgia World Congress Center, Hall B2

•

4:00 p.m.-7:00 p.m.

Event: NACE Automechanika Commitment to Training Program Location: Georgia World Congress Center

•

4:30 - 6:00 Automotive Foams Hazardous Materials, Personal and Refinish Safety Steel Unitized Structures Technologies and Repair Adhesive Bonding

• 10:00 a.m.-4:00 p.m.

Event: Big R Exhibit Location: Georgia World Congress Center, Hall B2

PAVILIONS AND CO-HOSTED EVENTS NACE Automechanika Commitment to Training Program The Commitment to Training events are one way NACE Automechanika continues its focus on bringing quality, in-demand training from top educators to the automotive service repair industry. The Commitment to Training combines live training with webinars, whitepapers, how-to videos, networking and more in an effort to educate today’s automotive professionals.

I-CAR Classes I-Car will host five classes during at NACE Automechanika, each with a separate $114 fee.

The courses are corrosion protection, adhesive bonding, automotive foams, steel unitized structures technologies and repair, measuring, vehicle technology trends and diagnostics overview, understanding the cycle time process, hazardous materials, personal and refinish safety, and adhesive bonding.

Rockin’ Rides Car Show Organized by the Atlanta I-Car committee, the Rockin’ Rides Car Show will show off close to 100 cars, trucks and motorcycles. The event is free with pre-registration, or $50 at the doors. Proceeds will go to the Collision Repair Education Foundation.

Big R Exhibit For the first time, the Big R will be held in conjunction with NACE Automechanika on both the show floor and in training. From research and development, through materials and production to recycling, the 77th Big R exhibition address market developments, technological information, as well as industry trends from a remanufacturer’s perspective.

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Collision Repair Education Foundation Golf Tournament The 17th annual Collision Repair Education Foundation Annual Golf Fundraiser is being held in The Collision Repair Education Foundation’s 17th annual golf fundraiser will be held at the Trophy Club of Apalachee in Dacula, Georgia. Repairers will club their way along the riverbanks of the Apalachee River. Golfers will meet at the Georgia World Congress Center at 8 a.m. on August 6.

The Collision Industry Conference Open Mic The Collision Industry Conference (CIC) is a forum made up of participants from all industry segments for the expressed purpose of discussing and exploring the issues that occur among them.

Through open discussions, the CIC attempts to help the broader automotive aftermarket find consensus.

The Open Mic events are open to interested repairers, insurers, paint and material companies, equipment, vehicle manufacturers, data providers, representatives of trade associations and anyone with an interest in creating a more professional industry. Each agenda has time set aside for participants to publicly address their concerns that are not on the published agenda through the time set aside as “open microphone”.

EVENT SPOTLIGHT

The Technology & Telematics Forum The bad news? Crystal balls don’t work. The good news? The Technology and Telematics Forum should give attendees some insight into what the future holds. The leading program in the collision industry is focusing on advanced automotive technology that is redefining the scope of a proper repair for a vehicle involved in an accident. Sensors, cameras, accident avoidance systems, and wireless communications are just some examples of new tech that affects repairs. Car manufacturers, insurers, repairers, and technology companies are driving the content which makes this the most comprehensive and relevant program of its kind.

While aimed at collision repairers, executive and managerial staff from MSOs, independent shop owners, insurers and technology providers are all welcome.

The MSO Symposium The MSO Symposium is set to take place in conjunction with the NACE Automechanika Show in Atlanta, GA providing the opportunity to discuss topics influencing our business today.

The MSO Symposium, on Thursday, August 9th, will be led and attended by experienced, high-growth executives from the leading multi-shop operations within North America. It is through the assistance of leaders from within these organizations that the MSO Symposium continuously delivers directly impactful information to its constituents.

With an expanded program for 2018, attendees will gain useful and original information from key decision-makers, while encountering unique opportunities to exchange business knowledge and conversation with so many developed leaders from within the collision repair industry.

The MSO Symposium’s program is directly relevant for owners of large, yet independent collision repair facilities, OEM collision repair program managers, insurance professionals, and members of multi-shop operators (MSOs). A limited number of prominent industry sponsors, who support the collision repair industry with information, equipment, and data solutions, will also attend.

Business Development Summit The 2018 Business Development Summit will be an assembly of business experts with a focus on ways to develop experts and entities focused on your business success. The focus of this exclusive three-day event is on helping collision repair businesses like yours gain the knowledge and mastery of critical business methods and practices essential to dominate in today’s rapidly evolving market.

This event is different than anything you have ever attended.

The agenda and content are driven by attendee needs. Certified repair provider delegates and industry experts selected from across North America share the key challenges facing repair providers. These challenges will be addressed through a series of presentations, demonstrations and panel discussions.

Attendees will gain insight into the latest industry trends, growth and profit strategies, and take a deep dive into Assured Performance’s “20/20 Management By Numbers” and the 5-Star Business Performance. The summit will also introduce special consumer marketing/sales programs and the hidden linkage between vehicle owners, dealers, and the OEM and Certified repair providers through advanced technology. Workshop topics will also touch on repair quality assurance and how to protect your business from litigation like John Eagle.

Fixed Ops Journal Forum Automotive News’ Fixed Ops Journal Forum, keynote speakers and panel sessions are designed to make a dealership’s service department a top performer. The forum is open to decision-makers at every level of dealership operations, including dealer principals, GMs, service & parts managers plus automakers and tiered suppliers. Of particular note to industry members is the panel discussion on successful technician recruitment with Calibre Systems automotive management services director Bernard Hyland and Pfaff Automotive.

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AV REPORT

MAJOR PLAYERS

A recent study reveals that Toronto has the worst commute in North America.

BY JEFF SANFORD

ROAD RAGE

T

wo years from now, the bus that commuters take to their nearest TTC station may be missing a familiar feature—a driver. The Toronto Transit Commission is preparing to perform a pilot project that would see driver-less shuttles transport commuters to and from transit stops. The $1.2-million project could launch in 2020. A report is to be released to the city’s public works committee.

According to a recent study, Toronto has the worst commute in North America and the sixth worst in the world. The downtown has become more dense over the last decade, causing jammed roads and transit infrastructure. The study suggests the proposed large golf cart-like AVs could help fix, “a broken, dangerous city.” The pilot would use pre-existing driverless shuttles that would seat up to twelve people, travel at low speeds, and most likely run on electric power… The City of Toronto intends to partner with the TTC and Metrolinx for the pilot. It would also be funded in part by Transport Canada with a grant of up to $365,000.

As well, During the pilot, ‘ambassadors’ from the TTC or Metrolinx would always be on board and ready to take control of the vehicle.

ACCESS BY BMW BMW is set to offer a program called “Access by BMW.” The subscription service will offer a form of mobility-as-a-service.

For $2,000 per month, a client would have access to a range of 5 Series and X5 vehicles.

For $3,700 a month, they would get access to the M performance versions of vehicles.

Maintenance and insurance come together in one package. The maintenance aspect can’t be overlooked. The success—and ‘learnings’ of these business models—are important en route to AVs and their fleets. Today, there is a tacit struggle between OEMs, owner-operators (i.e. consumers) and third parties over the billions of dollars at stake maintaining and repairing complex products. The move toward subscription service models by BMW and others is an example of this battle playing out. To be successful with these offerings, the OEMs will need to find ways to lower the cost of maintenance.

Subscription services by auto manufacturers illustrate the new importance of

The TTC is investing $1.2-million in driverless trains, which are set appear in 2020.

maintenance, repair and operation (MRO).

What’s at stake for the auto industry? When thinking about the future role of MRO in automotive, vehicle subscription services become an important marker for where the industry is headed. In this new model, OEMs gain control over the entire vehicle life cycle from design to sales and service networks. In turn, traditional dealerships may be relegated to showrooms as extensions of the OEM

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or completely absorbed altogether. As this network takes shape, OEMs will need to extend their systems and vehicle configuration knowledge to the point of service to optimize vehicle maintenance. The knowledge they will gain about this life cycle by first offering subscription services will be a prerequisite for managing autonomous fleets in the future.

Volvo, Lincoln, Cadillac and Porsche have similar programs.

AV REPORT

A NEW AV COMPETITOR BlackBerry’s strength in security, privacy and inter-connectivity will enable it to be a major player in the emerging market for self-driving and connected cars. Even so, the company’s CEO, John Chen, says it may take a decade for AVs to become common.

The Waterloo, Ontario based company is apparently working with a host of automotive parts makers, semiconductor developers and big name auto companies, including Ford Motors and Jaguar Land Rover. But Chen said fully AVs that are guided by wireless networks will probably remain a rarity for some time to come, not only because of the complex task of developing the technology, but also because of the necessary public policies. He was quoted as saying, “Let’s say (in) 2021, you’re not going to see a lot of them—if there are any. My speculation: ten years (from now) is probably closer to the truth than three years.” BlackBerry QNX is the

first in the country to test a self-driving car in this country. The trials began last October.

Some in the city were surprised to find the trials had been underway for some months when transit activists began to discuss the recent pedestrian death caused by an AV.

CEO of Blackberry, John Chen.

BlackBerry’s strength in security, privacy and inter-connectivity will enable it to be a major player in the emerging market for self-driving and connected cars

TESLA BOOM Canadian collisions centres may experience a boom in the number of Tesla’s coming through the door. Auto and electric vehicle blogs in Canada have been buzzing over the past two weeks as it become clear that Tesla is shipping mass numbers of the new Model 3 to this country. Clients who had put a deposit down on one of the new cars were invited to events at Tesla stores. Hundreds of people received a new car.

Blogs hosted pictures of parking lots filled with new Tesla’s waiting to be delivered. It seems Toronto is getting at least a thousand of the cars. One auto blog speculated that Tesla wanted to stretch out deliveries of its new Model 3 in the U.S. as long as possible.

The company hopes to slow deliveries of its 200,000th car in the US in Q3. By doing so, the company extends a phase-out of a $7,500 federal tax credit for U.S. buyers. As a result, huge batches of the new Tesla’s have been sent to Canadian owners. The boom of deliveries of Tesla’s to Canada is an example of Tesla pulling a sort-of regulatory arbitrage on EV subsidy regulations in the U.S. and Canada to maximize the benefit to consumers.

However, those who had put a deposit down on a Model 3 were only able to take delivery of a premium model. Elon Musk had

Canadian collisions centres may experience a boom in the number of Tesla’s coming through the door.

promised to provide a mass market electric vehicle that was affordable. This is what the Model 3 was supposed to be, but now the Tesla founder seems to be backing away from that promise. The cars arriving in stores are a more expensive version. As well, Musk recently said he’ll have to sell a $78,000 Model 3 rather than the $35,000 version he promised when he first announced the current project.

A $78,000 version will enrage the nearly 500,000 Tesla fans who each ponied up a $1,000 deposit on what they expected to be

a $35,000 version. Tesla, already at risk of falling behind in the EV revolution it helped trigger, will cede the market for affordable EVs to the many automakers that already have reasonably priced EVs on the road, including a $36,620 Chevrolet EV that has been a popular and critical success.

Considering that Tesla is not profitable and hugely in debt, some wonder if it will survive. It has to begin generating cash before it hits a financial wall. But that seems to be a problem.

AUGUST 2018 COLLISION REPAIR 65

AV REPORT

GENERAL MOTORS MAKING MOVES General Motors (GM) updated media on its plans for the all-electric Chevrolet Volt. The company’s sustainability report said the company will launch more than 20 new zero-emissions vehicles in global markets by 2023. That is, Tesla is about to a have a mass-produced and affordable competitor on the market.

His market dominance may be about to end as GM brings a low-price EV to the market. Musk doesn’t seem yet to be able to manufacture a Tesla for the low price he promised. If GM floods the market with a functional, low-priced EVs, Tesla may have a tough time ever becoming profitable. This current period could be looked back upon someday as that time when GM changed the course of the modern auto industry by knocking Musk out of the car game.

Other interesting AV news from the GM event: the company will put its Super Cruise technology, a hands-free driver assistance feature for the freeway, on all Cadillac vehicles as of 2020.

Super Cruise will begin appearing on other GM vehicles after 2020. The 2018 CT6 luxury sedan is currently the only vehicle with Super Cruise.

The Chevrolet Bolt. GM plans to produce 20 all-electric models by 2023.

CARS THAT FEED PEOPLE

This past Thursday the grocery store chain Kroger said it would work with EVs startup, Nuro, to test a device that will allow the world’s first driverless grocery deliveries.

A major American grocery chain is betting that “driverless cars can speed up the adoption of grocery delivery in the U.S.” Kroger is the largest U.S. supermarket chain by sales and stores. This past Thursday the chain said it would work with AVs start-up, Nuro, to test a device that will allow the world’s first driverless grocery deliveries. The company makes AVs that can drive on sidewalks.

The devices are supposed to make deliveries around a local neighbourhood possible. Kroger and Nuro executives said delivering groceries without drivers—while still years away—would make such services cheaper and easier to introduce in less densely populated parts of the country.

A source is quoted as saying, “We are not trying to be a dollar cheaper than regular delivery. We are trying to be an order of magnitude cheaper.”

QUALITY CARS An A J.D. Power survey of new-vehicle finds that the overall quality of the vehicles produced by the OEMs is at a record high. One of the reasons for the good marks: Automakers finally began cleaning up bugs with infotainment systems. Touch-screen infotainment systems such as radios, cellular phone connections and navigation remained the category with the highest number of problems this year, but J.D. Power said it improved for the third straight year. The progress was led by fewer problems with voice recognition systems. But a vice-president at J.D. Powers also cautioned that OEMs must begin to, “rein in rising problems with new driver-assist systems such as collision avoidance and lane-keeping.” The exec was quoted in a statement as saying, “Avoiding problems with safety and driver assistance technology is critical. Otherwise automakers will not easily overcome consumer resistance to fully automated cars.”

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J.D. Power announced that the overall quality of new vehicles is at an all-time high, though ADAS systems could be improved.

EVENT

CCIF 2018 takes on Montreal I

t was a record breaking day for the Canadian Collision Industry Forum in Montreal, as the organization’s conference attracted over 400 progressive collision repairers, manufacturers and suppliers.

The agenda, tackling some of the most pressing issues in the collision repair industry.

CCIF director Brigitte Pesant talked about the labour shortage and how it goes far beyond enrolment numbers. Pesant explained that students are learning from old methods

BY JORDAN ARSENEAULT and with equipment that’s out-of-date. She also indicated that students are struggling to afford equipment required to succeed in the program.

“Last Wednesday, Patrice Marcil and I visited Canada’s largest collision repair program in Canada,” said Pesant. “We asked the students about their thoughts about their program, and many mentioned that the toolkit they were required to purchase cost about $4,000, compared

Eric Léveillé celebrates with the UAP team after receiving an award for his service to the industry.

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to the $200 kit used by students in the construction program.”

Not only is the cost too steep, it also doesn’t add up. Peasent noted in some cases new technicians can expect to make $13.50 an hour,leaving them with little means of affording the tools necessary to complete their job.

The CCIF’s Collision Industry-Education Connection committee (CI-EC) has worked on two initiatives to help solve the labour shortage issues once and for all. The first provided schools with more consumables such as paints and glues. The second was to attract new talent to the industry by raising the public’s awareness of the work done by those inside it.

“Two years ago there was a disconnect between the industry and the educators,” Pesant said. “Today, we are working with 23 colleges, which are all suffering from low enrollment.”

Pesant is adamant that more support is needed from the industry in order for repairing schools to overcome the struggles they are currently facing.

“The truth is, as an industry, we are the consumers of a product that the colleges create,”

EVENT

Dana Alexander of CSN with Derrick Ryan and Christopher Goulding of Garland Autobody

Domenic Ieraci (left) and and Paul Prochilo (right) of Simplicity Car Care with Joe Carvalho.

says Pesant. “We need them to succeed, and we need to help out when they are struggling.”

Ryan Mandell, Mitchell International’s director of performance consulting, also spoke over the three day event. Mandell presented information on Blockchain, offering valuable information on how it will affect the industry.

“It’s a digitized, decentralized, public ledger of transactions,” said Mandell. “Like Google docs, a system that allows many people to work on a single document without the need to save updated versions, but one where the document can only be added to, not edited.”

Mandell admitted that he wasn’t an expert on the Blockchain, but became educated on the subject after using what he refers to as a “follow the money” approach to predict the future of the automotive industry.

“There are literally hundreds of organizations around the globe that are invested in the growth of the automotive applications of Blockchain. These range from research institutions and universities to varying sizes of public and private corporations,” Mandell said.“And it’s not just dedicated tech companies that are working on this. The OEMs see the value of Blockchain and are placing large

Tony Sutera of RSA Insurance with Eric Léveillé of UAP.

Don Morton of CARSTAR and Wayne Loker of Carrxpert.

“The truth is, as an industry, we are the consumers of a product that the colleges create.”

- Brigitte Pesant bets on the technology as a key component of their future mobility strategies.”

Mandell explained that many of the biggest areas of investment in the automotive industry will depend on a reliable ledger system to become widely accepted by drivers. From self-driving cars that must be able to juggle information from hundreds of censors to make decisions on the road, to the creation of apps that will allow OEMs to compete in a post-Uber ownership environment.

Within the collision repair industry Mandell believes the adoption of Blockchain technology has the potential to decrease cycle times, increase the reliability of repairs and limit the liability of repairers.

Adam Ceisets of Discount Car & Truck Rentals with Vince Maida of Desjardins.

Jordy Fujiwara of Audatex.

AUGUST 2018 COLLISION REPAIR 69

EVENT

“Think about it: imagine, at the end of a repair being able to provide your customer with all of the intricate details of the parts that were installed on their vehicle,” Mandell said. “Data all the way from the source of the raw materials to the exact date and time the resulting parts were ordered and installed on their vehicle. Think about the increased customer satisfaction and reduced liability if we could match every estimate of record with a secure Blockchain parts record.”

Mandell believes insurers, too, will see their industry rocked by the widespread adoption of Blockchain technologies. Like OEMs, they may soon use the technology to offer products that are better suited to a world where vehicle ownership is becoming less common.

“We will continue to see liability, collision and comprehensive coverages offered, likely in different forms that range from the traditional coverage to on demand and usage based policies,” Mandell said. “Additionally, autonomous vehicles will likely require product liability coverage from the vehicle and systems manufacturers.”

CCIF chairman Patrice Marcil delivered closing remarks thanking participants for their efforts and touched on the important role CCIF will to continue to play in the collision repair community.

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Brigitte Pesant of CCIF, John Turner of SATA Canada and Sandra Zalik and Elizabeth Wilcox of Fix Auto.

Gloria Mann of Media Matters with Joe Carvalho and Flavio Battilana of CSN.

GLOBAL VIEW

IBIS 2018 Hundreds of the world’s most knowledgeable minds in the automotive industry gather each year at the IBIS global summit

BY JORDAN ARSENEAULT

I

ndustry leaders in the collision repair field were in full force at the 2018 International Bodyshop Industry Symposium. Over 350 delegates from major companies around the world met to discuss a wide array of topics affecting the fast-changing environment that is the automotive industry.

The three day event opened up with a speech from IBIS CEO Jason Mosley, which was proceeded by a presentation from Paul Steele, sales director at TrustPilot. Steele touched on how consumers increasingly rely on technology to influence automotive purchasing decisions. According to a survey presented by Steele, 73 percent of car buyers use the internet to research before purchasing, with 28.7 percent spending over a month doing so. Steele pointed to the fact that companies need to focus on their online presence in order to establish trust and boost brand loyalty.

“The most important trust element is having social proof, having a community of reviews is a big confidence booster for customers,” said Steele.

Day one saw a plethora of speakers grace the stage, including Andrew Marsh, director of Auto Industry Insider. Marsh

told those in attendance to embrace the new automotive technology era, as it will create value in the industry. He spoke at length in regards to the different levels of technology present in automobiles and how the repair process is specific to each.

Regarding car sensors, Marsh highlighted three groups: those from 2000 onwards

which require static recalibration; those from 2008 onwards which need dynamic recalibration and those from 2017 onwards which are self-calibrating.

“Self calibration is where vehicle manufacturers need to go because when it becomes standard they need to be capable of covering it with a warranty,” said Marsh.

IBIS 2018 took place from June 11-13

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GLOBAL VIEW

Steve Leal, president and CEO of Fix Auto World.

IBIS CEO Jason Moseley.

Jim Muse, Axalta’s North America Sales Director and Global Refinish Accounts, sales and replacement director Stuart Sandell Enterprise Rent-A-Car Europe and I-CAR CEO John Van Alstyne.

Stephen Young, managing director of ICDP.

The IBIS Press corps, representing: Australian Paint & Panel (Australia),Bodyshop (U.K.) Collision Repair magazine (Canada), Motor China (China), AutoEXPERT (Czech Republic), Le Journal de l’Automobile (France), Schaden News (Germany), Fanofaves (Greece),Car Carrozzeria (Italy), Car & Tech (South Korea), Aftersales magazine (Netherlands), PanelTalk (New Zealand) Russia’s Kurzov Media (Russia), South Africa’s Automotive Refinisher (South Africa), Auto Body Repair Network (U.S.)

Ford Motor Company aftersales marketing director and global collision repair director Jennifer Boyer spoke about the possibility of a closer relationship between OEMs and repairers.

Marsh was adamant in stating that the industry needs to both recruit and invest accordingly, in order to become experts in the field moving forward.

‘Moving towards 2030, self-calibration will come and come quickly, but it leaves a gap,” said Marsh.‘We need to educate ourselves and become the go-to industry for this expertise – become the one stop service provider.”

Delegates Michael Wilmshurst, chief executive of Nationwide Accident Repair Services Plc, and Frank Liu, CEO of Fix Auto China, spoke about the obstacles both companies face in the industry and how many issues remain central to companies all over the world.

One issue of particular importance was that of skilled labour shortages and how an increase in technology has created a precipitous decline of workers able to operate new equipment. The reality of the skills gap has forced companies to reinvest in the training of their employees. Liu explained that, with the help of government funding,

“We need to get the right people into this industry because we, as a business, need the capabilities.”

- Stuart Sandell Fix Auto China has invested in schools to train technicians.

“The goal was to set the bar for the industry in China, we are the future for the industry,” said Liu. Wilmhurt shared his thoughts on the growing diversity of repairs that exist now thanks in part to new technologies.

“We have a saying: sometimes you need a nurse, sometimes you need a doctor and sometimes you need a surgeon,” Wilmhurst said.

“In order to repair correctly, a company must have the right equipment, and technology.”

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In the end both men agreed, that relationship building is the key in order to provide transparency between organizations and to allow companies to best serve their customers.

“You have to build trust by showing transparency,” said Whilmhurst.

Day two of the conference opened up to a familiar spot where Whilhurst and Liu left off, with a panel debate regarding the skills gap in the industry. A panel comprising of: Jim Muse, sales and marketing director, Axalta, North America; John Van Alstyne, CEO and president of I-CAR and Stuart

GLOBAL VIEW

Des Chan of Fix Auto World

Harry Danjal of Fix Auto World.

Industry analyst and speaker Brad Mewes.

Sandell, director, sales replacement division, Enterprise Rent-A-Car Europe, discussed ways the labour shortage can be addressed at both the corporate and grassroots levels.

Sandell started by addressing one of the underlining problems contributing to the shortage, by simply asking baby boomers in the crowd to show their hands. The results illustrated the aging that has gone on in the industry.

“We are the problem,” Sandell said.

Stuart continued by explaining the negative image the industry has in the UK and how that contributes to the loss of prospective employees. He explained that there is little in terms of aspirational figures left to inspire future generations in the industry and that popular culture portrays the sector in an outdated manor. Stuart said that larger corporate organizations need to do a better job promoting the industry as a whole and work towards creating an image of a place where younger generations can see themselves having a sustainable career.

“We need to get the right people into this industry because we, as a business, need the capabilities,” said Sandell.

Muse suggested that the sector could become more attractive to prospective employees if a unified body came together to create an education system specific to the trade.

This would provide a platform for inspiring technicians to gain the skills and expertise necessary to succeed in the industry.

The event concluded with Mosley announcing that IBIS would be moving to Italy next year for its global summit. The event will take place on 10-12 June at the Grand Hotel Dino, Baveno near Milan.

Darryl Simmons with CARSTAR’s Michael Macaluso.

Bob and Nicole Kirstiuk of Advantage Parts Solutions.

Andrew Marsh from Auto Industry Consulting.

Flavio Battilana of CSN and Darryl Simmons of Media Matters.

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PRODUCTS

GAME CHANGERS

T

i mes change and tools change with them. In this opening section, we look at some of the newest innovations that are hitting the shop floor. With cars becoming ever more complex, these tools are designed to make the lives of technicians easier and increase shop productivity. From flashy refinishing products and precise paint guns to powerful tools and slick management software suites, these products are the latest solutions to meeting the challenges of the shop floor. There is a lot to get excited about.

DEOS: Mirka Sleek and stylish, this electric orbital sander from design-oriented Finnish manufacturer Mirka does not just look pretty. Built as an improved version of Mirka’s wildly popular DEROS sander, the brushless motor exerts is said to be more powerful and less energy consumptive than in DEROS. At just 10 cm tall, the tool may be small, but it packs a punch. Designed to be compact and highly maneuverable, Mirka says the DEOS designers focused on creating an ergonomic design to ensure that the sander can be used comfortably for long periods without fatigue.

mirka.com

Sherwin Ultra 7000 Premium Williams: Refinish basecoat Offered with a limited lifetime guarantee, the urethane basecoat is designed with durability and consistency in mind. Sherwin-Williams says the Ultra 7000 reduces cycle times and is at the cutting edge when it comes to colour matching OEM vehicles. It also says that, if used without an added hardener, the pot life is indefinite.

asTech: Remote Diagnostic Device

sherwin-williams.com

Turn on, connect, complete. With this remote pre and post scanning tool, asTech The technician connects the asTech device to the vehicle, puts the key in the car, turns the ignition and submits a service request to asTech. com. An OEM master technician will send a message to the asTech device informing the shop that the scan is about to begin, after which a full report is transmitted back to the shop. The report details any issues causing dashboard warning lights to stay lit, and any error codes that have not tripped dashlights. It also delivers a report on whether sensor systems are functioning properly.

astech.com

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PRODUCTS

Total Sanding System: 3M While the old adage may say that cleanliness is next to godliness, 3M engineered this total sanding system to not just improve a facility’s cleanliness, but also its safety, efficiency and profitability. The Total Automotive Sanding System combines 3M abrasives with premium power tools and dust extraction solutions from Festool Automotive Systems. The combination is, according to the company, a comprehensive surface preparation and finishing system.

3mcanada.ca

Cordless Buffer: RBL RBL has introduced what it claims to be an “industry first”, with its new 21mm cordless buffer. Created so that users no longer have to “deal with the hassle” of extension cords, the company claims the buffer’s 21mm orbital pattern is the most “aggressive” in the industry allowing its customers to “effortlessly polish defects out fast.” The buffer has variable speed control, a battery life indicator, and comes with two batteries and a charger. A statement from RBL products read: “This is ideal if you need to polish a car outside the shop, in a dealership lot, or even a boat.”

rblproducts.com

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PRODUCTS

CarPart Pro: CarPart.com While searching a database of 190 million parts and 4,500 recyclers may sound intimidating, this advanced auto parts marketplace—which is free for collision repair facilities— is designed to make the work far faster for industry professionals. Offering the parts and services repairers are looking for, Car-Part says the platform allows users to pinpoint the best service providers and sellers through the program’s easy-to-use advanced searching criteria. Exclusively available to bodyshops, insurers and third-party administrators and Car-Part Gold recyclers, the platform is said to provide accurate local delivery dates.

carpartpro.com

Programmable Air Line: Emax RBL has introduced what it claims to be an “industry first”, with its new 21mm cordless buffer. Created so that users no longer have to “deal with the hassle” of extension cords, the company claims the buffer’s 21mm orbital pattern is the most “aggressive” in the industry allowing its customers to “effortlessly polish defects out fast.” The buffer has variable speed control, a battery life indicator, and comes with two batteries and a charger. A statement from RBL products read: “This is ideal if you need to polish a car outside the shop, in a dealership lot, or even a boat.”

emaxmodel.com

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Visit Mitchell at NACE located at booth #1627

FROM THE ARCHIVES

In My Estimation Autobody Shops must shape up or ship out

A look back at how the industry was written about in 1970

When Collision Repair magazine acquired

Bodyshop magazine in 2015, a back

catalogue of thirty years of material were believed to have been lost—at least until May. When a box arrived at publisher

Darryl Simmons’ door, he opened it and discovered a treasure trove of old issues.

Looking through the old articles, our

team was amused by how timely some

of the issues covered are, and how very different the collision repair world was.

Here, reprinted for the first time since in

January 1970, is the first editor’s note

from Bodyshop magazine written by founder Herschel Fenik.

W

ith the inaugural issue of Bodyshop autobody repairers from the Grand Banks to the Pacific finally have a publication exclusively serving their much-maligned and neglected industry.

Starting with volume one, number one, Bodyshop will strive to inform, instruct and offer solutions to the myriad problems which confront this fast-growing trade.

For instance: Bodyshop owners are the greatest giveaway artists since the legendary arrow-slinger from Sherwood Forest. Take labour, the most important asset you have to offer. Have you ever stopped to consider that you sell an average of only 32 out of a 40-hour week because of vacations, sick leave, telephone calls, lateness and a host of other miscellaneous items?

You must calculate your charge-out rate to include these costs if you want to stay in business Think too about rent and how much money you’re throwing to the dogs. Don’t let a damaged vehicle sit idle in a valuable spot in your shop.

This article first appeared in Bodyshop magazine: Volume 1, number 1.

Collect a proper storage fee from the insurance companies. Stall space is precious. It’s up to you to charge for it. Also, don’t let the “totals” needlessly tie-up much-needed work areas.

When preparing an estimate, be sure to charge for make-ready time.

In addition, when you consider your incidental costs in removing nuts and bolts on badly rusted cars; replacing antifreeze or undercoating and applying spatter finish in the trunk; picking up smashed glass on seats;

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FROM THE ARCHIVES

shampooing blood-stained apholstery; securing hard-to-get parts; cleaning up the car after the job is completed.

These are all costs apart from the overhead and should be included in your estimates. Adjusters and customers will soon become contitioned to seeing the extra, legitimate charges.

And what about the materials—the biggest gift of all? When are you going to stop including these as part of labour and thereby cheating yourself?

Anyone who does not charge separately for paint and body material is just flushing money down the drain. As a guide, some shops calculate their paint material charge at a rate of 25 cents of the labour. On body labour... and extra five cents is billed out.

Actually, you should also tack on a bit extra for the cost of aquiring the material.

Progressive bodyshops in the United Stats affix a special sticker to their estimates (they call them damage reports) which details some 30 items included in paint and body material. Why don’t you do the same? There are many other important services for which you should

Toronto, circa 1970.

charge. Insurance companies don’t give anything away. Why should you?

The time to start charging is now. Adjusters will eventually recognize that bodyshop operators too have the right to make a profit.

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An icon of the industry, Hershel Fenik, the first editor of Bodyshop magazine, wrote this piece for its inaugural issue in 1970.

The ARA plans a big birthday bash in Orlando While it may be turning 75 this year, the Auto Recyclers Association is still young at heart.

Auto Recyclers will be celebrating Halloween in the happiest place on Earth. From October 31 to November 3, the ARA will hold its 75th Annual Convention and Exposition in Disney World’s Dolphin Resort in Orlando, Florida.

With more than 30 educational sessions, and speeches from many of the automotive aftermarket’s most respected voices, the community will also have their chance to join in on the discussion. In the “Tackling the Tough Issues” Recyclers Roundtable, all members will be invited to participate and discuss industry issues. The four-day event will also include seminars on new features in yard management systems and how to remove friction between recyclers and repairers. As a special treat, sponsored by Hollander, visitors can enjoy the Disney Institute, a series of business seminars.

75th Annual Convention and Exposition in Disney World’s Dolphin Resort in Orlando, Florida.

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FEATURES

While the Stark family may value hard work, they are also firm believers in the importance of a little whimsy. Their fictional cousin, Tony Stark of Iron Man fame, graces the facility’s walls.

Stark Auto Sales chief legal officer Josh Stark.

Stark Advice Stark Auto Sales has had a good few decades, something which is made obvious by the fact that the business can afford to operate its head offices in a five hectare (14 acre) facility in midtown Toronto. Although it began as an auto recycling facility in the 1950s, the business has grown to become the largest Canadian-owned insurance vehicle auction organization, with facilities spread across most of the provinces.

In an effort to gain some insights about the business strategy behind the success of the family business, CRM sat down with Josh Stark, who is the chief legal officer. Josh along with his brother Jared, the chief operations officer, is in charge of the day-to-day running of Stark Auto Sales.

In our conversation, it became very clear that the great secret behind Stark’s success is that the family always makes sure they are realistic about their goals and that they work hard to achieve them.

“I’ve always been someone who has been more of a realist than an idealist, so I’m not sure that my business advice is too exciting,” Josh jokes. “In the next five years, my goal is to focus on steady growth and building relationships with insurers.”

A lawyer who received his degree from Bond University in Australia before articlating in Canada, Josh credits his father’s foresight for bringing the family recycling business into a very different, modern direction.

“I am always grateful that my dad insisted that my brother and I get graduate degrees before we played a serious role in the business,” says Josh. “I always knew I wanted to work here, and, had he allowed me to, I might have said yes, but it has been so valuable for us to both to see much more of the world.”

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When it comes to the leadership positions the two brothers now occupy, Josh believes that the perspective he gained as a lawyer, and his brother gained studying music management in the U.K., both played a vital role in the modernization of the company’s business model.

The Stark facility is located on a five hectare lot in midtown Toronto.

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FEATURES

“It is a bit of a case of old school meets new school. My dad had everything worked out, and the business operated on a handshake system,” says Josh, who admits, “we were able to make things a little more efficient when we formalized.”

A formalized procedure system is not all that the younger Starks have brought to their family business. They are also responsible for a complete renovation of the Toronto facility and for the expansion of the business far beyond Toronto’s borders.

While Josh is proud of all of the success the company has seen in the last few years, he confesses that his ambitions have never been focused on growth, but rather on preservation.

“The business has been in the family for more than 60 years, and we now employ more than 30 people. The truth is, I work as hard as I do because I would be too embarrassed to be the one who let things fall apart!”

The company offices.

Copart joins the big leagues Copart CEO Jayson Adair.

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Copart Inc. has replaced Dr Pepper Snapple Group Inc. (DPS) in the S&P 500.

The US company, which operates auto recycling facilities and auto salvage auctions, will join the benchmark before the start of trade on July 2. Copart currently has a market cap of $13.5bn and this move will increase its exposure since exchange funds that track the performance will have to buy the stock.

Dr Pepper Snapple Group, which is merging with privately held Keurig Green Mountain Inc., is changing its name to Keurig Dr Pepper Inc. and its ticker symbol (KDP) in a transaction expected to be completed soon. The newly combined company will no longer be eligible for inclusion in the S&P 500 as its Investable Weight Factor (IWF), which measures the percentage of free float available to the public, is expected to fall well below the 50% eligibility threshold needed for continued inclusion in the index.

RECYCLING

A NEW DIRECTION Sandy Blalock to be the ARA’s permanent executive director

By David Gold

F

or the past six weeks, I have been working very closely with the Auto Recyclers Association’s interim executive director Sandy Blalock. It has been my pleasure to see her in action. While eagle-eyed viewers will note that the ARA has reverted to the more traditional title of executive director, after a short period of it being referred to as chief executive officer, the offices are identical in all but name.

After having the opportunity to speak with Sandy, I am delighted that she has agreed to accept the position of executive director on a permanent basis. With her diversity of work experience, long-term involvement in the organization and performance in these first few weeks in the position, she is ready to continue to steer the ARA into a positive direction.

I have no doubt that Sandy will continue to help strengthen the relationship between herself,

WITH HER DIVERSITY OF WORK EXPERIENCE, LONG-TERM INVOLVEMENT IN THE ORGANIZATION AND PERFORMANCE IN THESE FIRST FEW WEEKS IN THE POSITION, SANDY IS READY TO CONTINUE TO STEER THE ARA INTO A POSITIVE DIRECTION. She has fostered a welcoming atmosphere that has encouraged the ARA staff to feel able to come forward with new ideas. By making herself readily available to us, she has worked to remove the communication barriers between the board of governors, staff and the executive committee. And don’t even get me started on her commitment to fiscal responsibility!

As a result of these efforts, I am seeing an ARA that is more cohesive and capable than in the past. Having served with the ARA in a number of leadership roles, it shouldn’t come a much of a surprise that Sandy has done such an excellent job in so short a time. We all had high hopes, and I am delighted to say that she has exceeded them.

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the board and the executive committee, and am excited that she will be able to work with us as we prepare for one of our biggest-ever events.

When the ARA membership arrives in Orlando to attend our 75th annual convention at the end of October, it will be as a cohesive team, unified in vision and purpose—and we have Sandy to thank for it.

David Gold of Standard Auto Wreckers is the president of the Automotive Recyclers Association.

He can be reached at 416-286-8686.

THE LAST WORD

THE INDEPENDENT SPIRIT ADVERTISER INDEX COMPANY

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It’s not just alive, it thrives

By Jeff Sanford

W

hen it comes right down to it, it’s all a matter of getting the job done right. There’s a lot of misconceptions when it comes to the difference between an independent and a network location. It makes no difference if it is a franchise, MSO, corporate network or a local independent.

At one time there were only independents and although nearly 75 percent of the dollar volume of all repairs across the country are performed by some sort of network shop, it doesn’t detract the least from independents.

It’s all about the quality of work and the reputation. And that’s impressive proprietorship.

The blossoming of sophistication in the collision repair sector over the past two decades has been a defining event in the industry.

Yes, the big chains sport professionally designed logos. Scripted television commercials and national PR campaigns beckon clients.

On the shop floor the technology is top shelf.

Managers employ the kind of advanced business management techniques that Fortune 500 companies use.

The metal-bashing, back alley auto body shops of yesteryear are gone. Those dirty, greasy shops have been replaced by high tech, lean, efficient, professionally managed operations.

But even in this golden age of collision repair, true success in the industry is still about fixing cars properly. As fancy as the industry has become, at base, the most important thing is to repair vehicles so that they are safe to return to the road. And in that respect, the many independent shops that continue to thrive in the era of the big brand consolidators still occupy a special place in this modern industry.

There is still a strong independent spirit that drives many shops to remain outside the circle of branded chains and DRP plans.

Think about it. Sure, you can debate the pros and cons of DRP programs all day. But the shops that remain proudly independent, just like the chains and networks, employ a laser-like focus on customer service and excellence in repair.

You know these shops. Every city, town and region has one, at least. For the most part, it’s a big, locally respected outfit. It’s often family

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owned. It’s tightly run. They’re known locally by reputation. Many have become a part of the local community.

Often the independent shop is the local heavyweight in a city sector, town or region.

And that’s because they have become a part of the local community. Since there’s no head office to handle the complaints, there’s no net for these guys. And that’s the way they like it.

No doubt there are the benefits of scale that national brands can deliver. But the fact is, collision repair is still a hyper-local business.

The vast majority of accidents happen with a couple kilometers of home. Vehicles are always repaired close to home, and that means that the only way to remain in business is to cultivate and maintain a local reputation for quality. These businesses live and die by their work. They’re not generating profits through bulk buys of supplies. So no wonder the independent spirit shines so bright.

Today, consolidators no doubt can boast about the benefits of national and continent-wide chains. But sourcing supplies and getting the paper work done sometimes is the secondary stuff. For the shops that have remained outside of the branded-DRP circle, the main concern is whether or not the customer leaves the shop feeling like the vehicle is better than it was before it came in.

And just like the chains and networks, that’s impressive proprietorship.

Over time the population in a region will talk. The local come to know who is good and who isn’t. The shops that live and die by word of mouth can’t take any days off in terms of short cuts on quality or service. The owners of these shops understand that, and rise to the challenge. It’s proof that the independent spirit, alive and well in the industry, continues to drive the collision repair sector in the right direction.

Jeff Sanford is a staff writer at Collision Repair magazine.

He can be reached at jeff@collisionrepairmag.com.