GLOBAL VIEW: WHERE WILL CANADA GO FROM HERE? Serving the Business of the Industry
TODAY’S TRENDS Exotic materials, how fuel prices affect you and more.
MEET YOUR JOBBER
FORMULA The Gobbato’s concentration on top-notch standards has helped put Windsor’s Formula One Collision clearly in the winners’ circle.
Know your partners better than ever before.
SHERLOCK HOLMES DIAGNOSIS
It’s elementary, Watson.
Plus Highlights from the PPG MVP and OARA conferences, new products and much, much more!
Volume 11 Number 2 l May 2012
$4.95 l Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill ON L3T 1Y2
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Perfection made simple
On The cover 27 high standards A focus on high-end cars means that everything at Formula One Collision has to be high-class.
Volume 11 Issue 2, May 2012
features 24 A repairer’s perspective Carstar’s CEO on what a shop needs to do to survive and thrive.
30 Speed and maneuverability The inside scoop from PPG’s MVP conference.
33 Today’s trends Forewarned is forearmed, whether that’s new materials or fuel prices.
35 History in pictures The second installment reviewing Collision Repair’s past ten years.
38 sherlock holmes diagnosis Jim Morton shows how to use deduction on the shop floor.
40 strong voice Robbie Mydonick of InterCity Autobody knows that social media matters.
53 Meet Your Jobber Come inside the warehouse and get to know your partners.
departments 04 Publisher’s page by Darryl Simmons
n 10 t h A
The OE awakens.
sa r y iver
42 Who’s driving? by Jay Perry A fair return.
44 Point Blank by Sam Piercey Real partnerships.
GLOBAL VIEW: WHERE WILL CANADA GO FROM HERE? Serving the Business of the Industry
TODAY’S TRENDS Exotic materials, how fuel prices affect you and more.
On the Cover: Frank and Franco Gobbato of Formula One Collision in Windsor, Ontario. photography by Jim Bessey.
FORMULA The Gobbato’s concentration on top-notch standards has helped put Windsor’s Formula One Collision clearly in the winners’ circle.
Know your partners better than ever before.
SHERLOCK HOLMES DIAGNOSIS
It’s elementary, Watson.
Plus Highlights from the PPG MVP and OARA conferences, new products and much, much more!
The big four.
48 Prairie View by Tom Bissonnette
MEET YOUR JOBBER
46 Social Matters by Jonathan Barrick
YOUR ONLINE SOURCE
Canada’s collision repair information resource. New articles and top news stories daily. Visit www.collisionrepairmag.com.
50 NEW PRODUCTS The latest and greatest.
64 Recycling by David Gold Management guy.
HAVE YOUR SAY We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to firstname.lastname@example.org.
66 THE LAST WORD by Mike Davey We need to talk.
may 2012 collision Repair 03
OEMvoice Auto manufacturers will make sure they are heard. PUBLISHER DARRYL SIMMONS (905) 370-0101 email@example.com
By Darryl Simmons
ver the next few years, I suspect car manufacturers (the OEM) will start to take a stronger position in collision repair by setting up their own systems of accreditation for collision repair facilities working on their vehicles. At the very least, they’re certain to publish standards and guidelines that strongly urge certain parts, materials and procedures. It doesn’t really take a crystal ball to make these predictions, as they have already started happening. Chrysler’s decision to set up accredited repair facilities
emotional tie is strong with drivers who love their brand. When this is leveraged it will be an easy sell to get the consumer to stick with their beloved brand’s practices. In Chrysler’s case in the U.S., they’re handing out certificates to customers when their vehicle is repaired using 100 percent OE collision repair parts at a Chrysler accreditated collision repair facility. The CARFAX report is also updated. The stated idea is to help preserve the resale value of the vehicle, but it’s also going to help Chrysler sell a lot of parts. The business rationale is sound, at least for the OEM. They get a captive market
Selling cars is not as profitable as it once was. in the U.S. is not the first OEM program, but it is the first maintream one. If mainstream car makers want to go beyond dipping their toes in the parts sales pool, it will certainly make for interesting times. Selling cars is not as profitable as it once was. The OEM have had to cut prices to the bone to get their product out the door. Now they’re looking for alternative ways to make money. Selling parts is a very attractive profit centre. Insurers are one of the key advocates of aftermarket and recycled parts, and they should be. After all, these parts are excellent replacements. However, when Chrysler announced their accredited facilities program in the U.S., it was a clear signal that the OEM may raise their collective voice. We’ve seen how the luxury brands have created ways to control their parts usage, and now that the tide is moving mainstream, it may have huge repercussions throughout the industry. The biggest thing the OEM have is their relationship with their customer. The
for their parts and will be able to better control costs and have more predictable output. Whether it’s good for the repairers is almost a moot question. After all, who wants to stand in the middle between two behemoths battling it out? Customers still have freedom of choice in both place of repair and parts used, but in the end they are looking for speed and convenience. Most will do what they are told... the question is, who will they pick between their insurance prompters and the OEM? It will certainly take a while to pan out, but I see the day coming when the PR machine of the OEM step toe-to-toe with the insurers. This is not necessarily something to worry about as a shop owner right now, but it’s definitely something to keep on your radar. We’ll continue to keep you updated as the situation develops. CRM
04 collision Repair collisionrepairmag.com
EDITOR MIKE DAVEY firstname.lastname@example.org ART DIRECTOR DANIELA LUBERTO email@example.com Interns lori atik, matthew so, Raisha Karnani COLUMNISTS DAVID GOLD, JAY PERRY, jonathan barrick, SAM PIERCEY, TOM BISSONNETTE VP INDUSTRY RELATIONS GLORIA MANN (647) 998-5677 firstname.lastname@example.org VP Digital Media JOE PLATI (647) 669-2625 email@example.com circulation department Pat Cappelli (905) 370-0101 firstname.lastname@example.org publisher’s assistant Ryan Potts email@example.com SUBSCRIPTION One-year $29.95 / Two-year $55.95 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 with out written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 86 John Street Thornhill, ON L3T 1Y2
Collision Repair magazine is published by Media Matters Inc., publishers of:
Trainingmatters.ca T H E T RA I N I N G P O RTA L F O R C O L L I S I O N R E PA I R
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Pat Ryan joins Supreme Collision Centres Supreme Collision Centres is pleased to announce that Pat Ryan has recently been appointed Vice President, Procurement and Process at Supreme ColliPat Ryan. sion Centres. He will be responsible for all supply chain and procurement functions and will lead the Process Implementation team. “He shares Supreme’s principles of integrity and vision, realizing our goal is to be the leading Process-Centric Network in Ontario,” says Marty Reddick, President of Supreme Collision Centres. Pat Ryan comes to Supreme with a wealth of knowledge about the collision repair industry.
While living in Ottawa in the 90s, he worked at Allard’s Collision Centres and later was the Eastern Ontario sales and training representative for MPX Data Systems. Upon his return to the GTA, he spent some time as Corporate Store Support for Carstar Canada, coaching and training front office staff and managers. Pat Ryan was also part owner of Fix Auto Ontario for four years where he was also the Operations Manager. He also spent three and a half years as Claims Procurement Manager at Aviva Canada, during which he managed over 90 collision repair facilities in Ontario in performance KPIs and policy compliance. Before joining the Supreme team, Pat Ryan owned and operated his own business, Canadian Collision Data Services, bringing data management services to the collision repair industry in Ontario.
People on the move
For the latest news on collision repair and auto recycling visit collisionrepairmag.com.
strange but true Pot Illegal, Even For Trades A California man was arrested in March after trying to buy a used motorcycle with about $8,000 worth of marijuana. According to an officer on the scene, the man said, “I know you can’t sell it, but I thought it was okay to trade it.”
She’ll Smell Through That One Did you know you can buy a fragrance for men that evokes fuel, burned
LKQ appoints Blythe J. McGarvie to Board of Directors
rubber and grease? The
LKQ Corporation has announced the appointment of Blythe J. McGarvie to its Board of Directors. Joseph M. Holsten, Chairman of LKQ Corporation, stated, “We are very pleased to have Blythe join our Board. We expect her to be a major contributor to LKQ’s continued success both domestically and internationally. I am confident that her significant finance, accounting and corporate governance experience will be a great addition to our Board and will assist our management team in effectively executing our long-term growth strategy.” McGarvie has served as Chief Executive Officer and Founder of Leadership for International Finance since 2003, offering strategic reviews and leadership seminars for improved decision-making for corporate and academic groups. From 1999 to 2002,
have to go to Maverick’s,
she was the Executive Vice President and Chief Financial Officer of BIC Group, a publiclytraded consumer goods company with operations in Blythe J. McGarvie. 36 countries. From 1994 to 1999, McGarvie was the Executive Vice President and Chief Financial Officer of Hannaford Bros. Co., a Fortune 500 retailer. She also serves on the board of directors of Viacom Inc., a global entertainment content company, and Accenture plc, a global management consulting, technology services and outsourcing company. McGarvie holds a Professional Director Certification from the American College of Corporate Directors.
06 collision Repair collisionrepairmag.com
only catch is that you’ll a “gentlemen’s club” in South Africa to buy it. It’s called, and we swear we’re not making this up, “My Car Broke Down.”
Big BIG Rig Sheikh Hamad bin Hamdan Al Nahyan is a big fan of the 1950 Dodge Power Wagon, and we mean he’s a BIG fan. He built a replica of
ME HO EET SWOME H
the classic truck that’s 64 times the size of the original. It weighs 50 tons, and includes offices, a master bedroom, living room and the gate on the bed turns into a balcony.
g n i h t y r Eve , d e e n u yo d n u o r a just . r e n r o c the
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Women’s Industry Network welcomes two new directors The Women’s Industry Network (WIN) welcomes Jessica Voss-Kehl, Senior Product Development Supervisor, 3M and Melissa Perez, District Sales Manager, FinishMaster as the newest Directors to its Board. The WIN Board consists of various industry segments including but not limited to: shop owners, jobbers, suppliers, consultants, paint companies and insurance companies. As an all volunteer organization, WIN Board members, serving 3 year terms, work together to guide the organization as well as foster an environment that encourages the education, recruitment, retention and networking of women in the collision repair industry. “It is our honour to welcome these talented collision industry leaders to the 2012 WIN Board of Directors,” said Denise Caspersen, Collision Manager at ASA and Chair of the Board Development Committee. “As we embark on our strategic initiatives for 2012, these women will be actively involved in supporting educational efforts for women in the industry, enhancing WIN’s value proposition, and promoting women’s initiatives across all segments of our industry.” New board members will be introduced and officially welcomed by seated Directors and WIN members-at-large at the annual WIN Educational Conference, Be The Change, being held May 6 to 8 at the Intercontinental Buckhead in Atlanta, GA. To learn more about WIN, please visit womensindustrynetwork.org or for information on becoming a member, please contact Victoria Jankowski at victoria.jankowski.gsfg@ statefarm.com or Denise Caspersen at firstname.lastname@example.org.
08 collision Repair collisionrepairmag.com
IN MEMORIAM: CHUCK MAYNE It is with great sadness that we report that Chuck Mayne of AkzoNobel Coatings passed away on Valentine’s Day at the age of 66. With AkzoNobel since 1983, Chuck Mayne. Mayne made many contributions to the collision repair industry, serving as ViceChair of the Collision Industry Conference marketing committee and serving on the board of trustees for the Collision Industry Foundation. During his 29 years with AkzoNobel, Mayne worked in a number of departments, including Marketing, HR, Communications, and Management. In 2005 he was appointed Global Manger of the Automotive Aftermarket for AkzoNobel Coatings. He is survived by his wife Mary Jane, son Charles (fiancé Kathleen Hansbury), McKenzie (Steve) Setelia, and sister, Peggy (Herschel) Post.
The Audatex Advantage The company’s iAutoFocus software boosts productivity and lowers cycle time. Software and collision repair may seem worlds apart, but Frank LaPalerma has worked in both worlds and begs to differ. A computer programmer in the 1980s and an associate with Accpac in the 90s, there’s no question that LaPalerma knows quality software. As the Controller at Auto Bugatti, a repair facility for high-end and luxury vehicles in Dorval, Quebec, there’s no question that LaPalerma knows collision repair. With that sort of knowledge base, you know that LaPalerma wouldn’t choose just any management system for Auto Bugatti, and he didn’t. He chose iAutoFocus from Audatex. “The collision repair industry isn’t just results oriented, it’s time oriented,” says LaPalerma. “The margin of error has diminished drastically over the last ten years. Back then, you had the luxury of making a mistake or two. Now, the margin of error is very small. Any loss of time has repercussions on the profitability of the job and more importantly, the customer.” It’s an age old problem. How does a repairer get the job done on time without sacrificing quality? LaPalerma found an answer in iAutoFocus from Audatex. “Our main problem was scheduling,” says LaPalerma. “Juggling parts orders and managing workflow and rental cars are all part of the equation. The longer the customer is in a rental car, the more it costs. We need to be able to turn around repairs as quick as possible, while still making sure that we provide the high levels of quality that our VIP customers demand. With iAutoFocus, we can now easily do job costing, scheduling and
rental tracking―streamlining our operations so we can get our customers back on the road faster.” Scheduling is something that every management system promises, but iAutoFocus actually delivers for AutoBugatti. There’s a lot of software out there that is solid and it works, but it’s not user-friendly,” says LaPalerma. Very often, there’s a steep learning curve that requires everyone using the system to adapt their methods. One of the hallmarks of outstanding software is that it adapts to your business, not the other way around. That’s one way iAutoFocus excels. “There isn’t just one way of doing something. iAutoFocus enables us to do things the way we judge to be simpler, instead of insisting that we do things a particular way,” says LaPalerma. “It’s all about flexibility. It enables you to freeze at one point, do something else and then come back to it without affecting anything else.” “Visually, everything is there. With other software, you almost have to keep a map in your mind of all the different modules. With iAutoFocus, you have easy to see options. You can track when an estimate has been verified, when it’s been assigned, when the work is scheduled to start and when it’s scheduled to be completed.” As a former accountant, LaPalerma knows the importance of financial data, and he was specifically elated with the detailed financial tracking and powerful integration with accounting software that iAutoFocus provides. “Simply put, iAutoFocus minimizes financial leaks and puts you in complete control,” says LaPalerma. Audatex has a special offer for subscribers to Collision Repair magazine. Please visit http://www. iautofocus.ca/010612/ to view this special offer, or scan the QR code with your mobile phone.
Anthony Giagnacovo, Managing Director of Audatex and Joe Visconti, Owner of Auto Bugatti. Auto Bugatti repairs high-end vehicles, and they needed a management system that would meet their own high expectations. They chose iAutoFocus.
Outstanding software adapts to your business, not the other way around. “It’s integrated with QuickBooks, the single most widely used accounting software, and it is soon to be available for Simply Accounting as well, which is the second most popular. The level of integration simplifies financials dramatically. Not only is daily information managed, but you can merge it seamlessly with your accounting software.” “With iAutoFocus, there is increased productivity across all of our operations. My employees are able to do more work in less time. I would say we’ve increased productivity between 15 and 20 percent. A lot of shops are still filling in work orders and estimates manually. This is done automatically, so there is no place for errors to creep in when transferring information.” No matter how good the software, sooner or later you will need support. LaPalerma says the level of support is another reason he chose iAutoFocus. “The support is phenomenal,” says LaPalerma. “They’re always available to help. There’s none of that ‘We’ll contact you within 24 hours’ stuff. If the first person you reach can’t help, they’ll put you on a conference call and workshop a solution. When you’ve got a problem in your shop, it’s got to be fixed now. Audatex understands that.”
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New stronger, lighter materials could be headed our way A Canadian research team is just a few years away from overcoming a major challenge facing automotive manufacturers: how to mass produce doors, hoods, trunks and other car body parts that are stronger and lighter, without sacrificing design flexibility. However, there is still the question of how this new technology will affect the repair process. Amino North America Corporation (ANAC) is collaborating with engineers at the University of Windsor, the University of Waterloo and Ford Motor Company on a $1.9-million Automotive Partnership Canada project. The company is already a world leader in sheet hydroforming, a process that uses a high-pressure hydraulic fluid to shape steel, aluminum and other sheet materials to make complex shapes for vehicles. Within the next two to three years, it plans to combine its process with a revolutionary technology called electrohydraulic forming (EHF). The EHF process discharges a high voltage current into a water-filled chamber. Pressure created by the discharge provides the mechanical force necessary to form sheet metal into shapes not possible with conventional metal forming processes. “Automotive sheet materials are deformed to the limits of their formability,” says lead investigator Dr. Daniel Green at the University of Windsor. “In order to further reduce the weight, you have to increase the strength or use more expensive alloys, and this makes it increasingly difficult to produce shapes that are aesthetically appealing. EHF overcomes these limitations.” EHF can also produce more parts per work shift than conventional processes, thereby increasing production capacity and lowering overall manufacturing costs. These are obvious benefits for both consumers and manufacturers, but repairers may encounter difficulty in years ahead when working on these panels. “If it’s going to make the steel stronger, especially if they’re talking about using those types of materials to make the outer body panels stronger, it’s going to create more issues,” says Tim Morgan, Managing Director-Americas for Elektron. “We might see more parts replaced rather than repaired. It’s the same thing that you’ll run into with high-strength steel. When you’re working on those panels, make sure you have the proper welding equipment. It’s definitely going to have to be a high power, resistance
10 collision Repair collisionrepairmag.com
type welder. We have software that’s already in existence, where it doesn’t matter what metal it is, it will automatically detect it and make the needed adjustments.” Moving research to the shop floor Dr. Green is collaborating with Dr. Michael Worswick at the University of Waterloo and 12 graduate students and post-doctoral fellows to provide Ford and ANAC with the scientific data they need to understand why sheet materials become so much more formable in this process.
A sheet hydroforming unit at Amino North America. A new process called electrohydraulic forming may hold the key to stronger, lighter sheet metal.
“Nobody would go ahead and build dies to produce automotive parts without first developing computer models capable of predicting the outcome of the forming operation,” explains Dr. Green. “And these computer models can only be developed after a thorough and systematic investigation of the science that explains the behaviour of the sheet material.” As part of the project, researchers will incorporate their models into computer codes so that designers can simulate the manufacture of parts, well before any tooling is built. The final step will be to create guidelines to enable engineers to start designing parts that will be made with EHF technology. “Repairing high strength steel outer sheet metal isn’t a real problem when it’s a smaller dent on a gentle curve,” says Stu Klein, Franchisee Developer for Fix Auto and an experienced I-CAR instructor. “This new technology, however, will allow even higher strength and lighter weight steels to be used as well as sharper curves and more complex shapes. This combination could lead to more non-repairable parts, due to the
likelihood of the metal cracking during an attempted repair.” Bill Davidge, National Technical Manager of Carstar Automotive Canada, also referred to an increase in the chances of the metal fracturing when we spoke with him. “I can only assume these materials will be more difficult to repair. If nothing else, the elasticity of a stronger, thinner steel will mean it will probably be less repairable than what we’re working with now,” says
Davidge. “I see some advantages for the “It all depends on how the new comconsumer, such as corrosion resistance and ponent will behave, which is hard to say dent resistance, and the OE benefits as well, without experience with metals like that,” but as for repairability, we just don’t know says D’Alessandro. “We’re going to have to for certain at this stage.” see how the new materials behave in colThis is a statement that Frank D’Alessandro lisions. For example, by and large when of 427 Auto Collision~CSN would likely aluminum panels get damaged, they have agree with. He notes that we will have to to be replaced. Aluminum doesn’t behave see how the materials behave under realvery well when it comes to repair. In all other world conditions before determining exactly aspects of the process, like paint and prep, what challenges they’ll present. it will be pretty much the same.” Ad_tools2012-4_Layout 1 12-03-29 11:42 AM Page 1
Expect more carbon fibre from BMW
Photo by Michael Lucan/ CC BY-3.0 license.
• • • • • •
BMW will use carbon fibre for the construction of the complete body of the BMW i3, an electric vehicle designed for use in urban areas that will launch in 2013. Klaus Draeger says the i3 is the first vehicle in which carbon fibre is used extensively as a body material. Draeger is a member of the BMW board and chief of research and development. As part of bringing the i3 to market, BMW became a partner in SGL Automotive Carbon Fibers, a manufacturer of industrial-grade carbon fibre. “We are now looking at how we can also bring carbon fibre further into the series production of our conventional vehicles,” says Draeger. “But this is more or less the state of research.” After the i3, BMW plans to produce the i8, a plug-in hybrid version that will also use a carbon fibre body. Draeger has indicated that carbon fibre will also be used in whatever comes after BMW’s 7 series, but that other materials will continue to see significant use. “It will be important to have the right material mix, have high-strength steel, aluminum, and in addition to it, carbon fiber,” says Draeger. “If we look at the current 7 Series, we have some aluminum parts: the doors, the front fenders, the bonnet and the roof. What is not from aluminum are the structural items.”
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Chief University releases 2012 training schedule Chief University, the training arm of Chief Automotive Technologies, has announced its 2012 schedule of hands-on training courses for collision repair technicians, estimators and appraisers. The schedule includes many opportunities to take Chief’s newest course on Design Based Repair. This comprehensive class features 16 hours of instruction on the efficient, economical and proper repair of a vehicle to return it to original design specifications. The course concentrates on the use of new materials including high-strength steels, boron, aluminum and carbon fiber in modern vehicle design, as well as the proper use of OEM information and repair procedures. Chief University classes are held in training centres throughout the United States and Canada. They combine classroom training with hands-on demonstrations and practice. All courses are led by professional Chief certified instructors, and most are approved for I-CAR points through the I-CAR Industry Training Alliance program. Chief training also has been certified by the National Institute for Automotive Service Excellence (ASE) for compliance with the Continuing Automotive Service Education (CASE) Standards. Most Chief University classes cost $655 and include comprehensive training materials and certificates of completion. Structural Damage Analysis is a three-day course that costs $985. Class offerings are updated frequently. For schedules and to register, please visit chiefautomotive.com/ training/chiefuniversity.asp.
Sherwin-Williams announces 2012 Q2 training Sherwin-Williams Automotive Finishes 2012 second quarter training sessions are designed for various Canadian collision repair industry professionals seeking advancement and increased knowledge in their respective fields. Courses will be offered through June 2012. Through a variety of settings at numerous Canadian metropolitan Sherwin-Williams Automotive Finishes training and regional vocational tech centres; shop owners, managers, painters, and independent jobbers can learn intensive business-building, production-excellence, and application-technique skills. The following courses will be conducted during the second quarter: painter certification, colour adjustment and blending, AWX waterborne systems and ATX refinish system. There will also be classes on the new ATX Refinish System. This is a 3.5 VOC basecoat-clearcoat system developed specifically for mid-range shops with medium production needs that are seeking a solvent borne paint system. Sherwin-Williams will also offer a special class available for independent jobbers to better develop their customer service, inventory management and the overall SherwinWilliams brand experience with collision shops. For more information about Sherwin-Williams Automotive Finishes Canadian training classes, contact Dave Lalonde by phone at 905-890-4222 or fax at 216-586-8679 to register. For information on other Sherwin-Williams Automotive Finishes products or services, visit sherwin-automotive. com or call 800-SWULTRA.
New Fusor Training Alliance courses available
CJJ, Inc., 1210 Fortune Ave, Detroit lakes, MN 56501 USA
12 collision Repair collisionrepairmag.com
Lord Corporation, maker of Fusor Automotive Repair Adhesives, has announced the availability of new Fusor Repair Clinics. Lord Corporation is the first adhesive company to offer such curriculum by I-CAR through the Industry Training Alliance program and has been doing so since 2001. Each one-hour Lord Fusor course can be customized to fit any shop’s schedule during lunch or after hours. The mission of the Lord Automotive Aftermarket Training Department is to develop and deliver courses to the collision repair industry that enable attendees to obtain the skills necessary to properly use the Fusor Aftermarket line. Course instruction includes OEM approved and/or industry accepted techniques, proper and safe use of adhesives and seam sealers, proper product selection for each type of repair, and surface preparation for optimum repair results. Available in the U.S. and Canada, the following courses are offered: Fusor 002 Bumper Repair, Fusor 003 Composite Repair and Bonding, Fusor 004 Metal Bonding, Fusor 005 Weld Bonding and Fusor 006 Sealing and Sound Control. For more information or to register, contact your local jobber, Fusor rep or sign up at lord.com/repairclinics.
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Fix Auto Adds Four locations Four new locations have joined the Fix Auto network: Fix Auto Weston, Fix Auto Windsor East, Fix Auto Bow Valley and Fix Auto Georgetown. Fix Auto is pleased to announce another territory solution-Fix Auto Weston. The collision repair facility has been part of the community for over 25 years before joining the Fix Auto Owners Judy and Terry Sieben in the front office of Fix Auto Bow Valley.
network. Fix Auto Weston is located at 228 Milvan Dr., at Islington Ave. and Steeles Ave. W in Toronto, and is managed by Sam Scarpelli who believes in strong brand recognition. Fix Auto Weston released a statement explaining the decision to join the network: “It is important to market a brand and to ensure the right people represent the brand. Growth is the direct result of improvement,
achievement and success. The determination to succeed is not a matter of chance. It is a choice. We are pleased to join the Fix Auto network.” Fix Auto Windsor East, located at 3966 North Service Rd. E., is an 8,000 sq. ft. location owned and operated by brothers Domenic and Anthony Iannetta. The Iannettas personally oversee each repair and have facilitated their company’s rapid expansion during the past few years. Four years ago, they made the decision to join the Fix Auto network, with the new name Fix Auto Windsor Central. Fix Auto Windsor East is the brothers’ second collision facility. “The continuous growth of our company with Fix Auto has enabled us to open a second location,” said Domenic Iannetta, Fix Auto Windsor East general manager. “We wanted to be able to offer our customers and the city of Windsor the same services and experience we have been offering since 1968, now in two convenient locations.” Fix Auto has also announced a new Alberta location: Fix Auto Bow Valley. Located at 119 Bow Meadows Cres., Fix Auto Bow Valley is owned by husband and wife team Terry and
The office area of Fix Auto Georgetown, one of the most recent additions to the Fix Auto network.
Judy Sieben. The duo have been a part of the auto body repair business for over 30 years, primarily servicing the Banff/Canmore area. “We decided to go with the Fix Auto network for several reasons. We enjoy the idea of being able to offer our clients a nationwide warranty; we liked the idea of belonging to a network for support, buying groups and idea sharing meetings,” said Terry Sieben, owner of Fix Auto Bow Valley. “With change comes new challenges allowing for growth and accomplishment.” Fix Auto Georgetown is another new addition to the network. Joe Italiano owns the collision repair facility located at 411 Draper St. in Norval, Ont. Servicing the collision repair needs of Georgetown and Halton Hills residents for 30 years, Italiano is an active member within the community. As a member of the Halton Hills Chamber of Commerce, as well as a proud sponsor of the Georgetown Minor Hockey Association, Italiano is passionate about his community. “Quality workmanship and customer service have always been our #1 focus. We realized the changes within the body collision industry and that insurance companies are looking for much more than stellar customer service and fair estimates,” said Joe Italiano, owner of Fix Auto Georgetown. “In order to secure the growth of our business we turned to Fix Auto because of their focus on the future with innovative technology and franchisee support.” For more information, visit fixauto.com.
The front office of Fix Auto Windsor East. This is the second location for Domenic and Anthony Iannetta.
Fix Auto Weston.
14 collision Repair collisionrepairmag.com
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going for gold at the toronto skills competition We often focus on the importance of teamwork, but there’s nothing wrong with having a competitive spirit. Every year the Toronto District School Board’s Auto Collision and Car Painting competition helps to foster this spirit and encourages young people to seek careers in the autobody trades. This year’s competition took place March 8 at Danforth Collegiate Technical Institute in Toronto. The competition is broken down into quadrants because of the sheer number of high schools in Toronto. This was the 22nd Toronto Skills competition. Bill Speed is an autobody instructor at Danforth CTI, and has been involved with 20 of those 22 competitions. He has also been involved with the Ontario Technological Skills competition as a co-chair or chair since 1995 and involved with the Canadian Skills competition since 2001 as a judge and a committee member since 2006. Although skills competitions are helpful in attracting new talent, Speed notes that the number of schools participating in the competition has declined. “The number of auto body programs in the school board has dropped substantially over the last 20 years, from about 10 programs when I started in 1989 to just four programs today,” says Speed. Bill Speed is an instructor at Danforth CTI and one of the competition organizers.
“Perhaps the industry needs to start asking questions of the school boards as to why these programs have not been sustainable.” Bill Speed and the competition organizers would like to thank the following people for their help and support in serving as judges: Kirk Edwards, BASF Stu Klein, Fix Auto Andy Neufeld, Fix Auto Dave Hawthorn, 3M Canada Domenic Prochilo, Prochilo Brothers Collsion Competition Results South West Auto Collision Gold medal: Tony Teng, Danforth CTI Silver medal: Youssef Maachar, Danforth CTI Bronze medal: Daneil Coley, Danforth CTI South East Auto Collision Gold medal: Aomid Nawabi, Sir Robert L Borden South West Car Painting Gold medal: David Dyson-Tam, Danforth CTI Silver medal: Catherine Mathewson, Danforth CTI South East Car Painting Gold medal: Philemon Joseph, Sir Robert L. Borden Silver medal: Sebria Sourour, Sir Robert L. Borden
From left: Jeff Moore (TD Insurance), Brian Martins, Mo Bisnauth (Assured Leaside), Fred Mauro (TD Insurance) and Sean Leonard (Assured Leaside).
enough to be properly T R A I N E D & E Q U I PP E D NOT BECAUSE WE HAVE TO, BUT BECAUSE WE WANT TO.
Assured Honoured: Assured Leaside Assured Automotive honours our staff at Assured Leaside who were recently recognized by TD Insurance and awarded the TD Insurance “WOW Award of Excellence”. This award is presented by TD Insurance in recognition of collision repair facilities and their achievement in “delivering a legendary Client Experience”. Assured believes that it’s not just about the car, it’s about the customer. Assured’s staff is the key to our success; to this end we would like to thank our staff at Assured Leaside for their contribution and dedication to Assured Automotive, our Insurance Partners and customers alike.
“ t r a i n iinngt oi sd aeys’ ss ei nn dt iuaslt r y 16 collision Repair collisionrepairmag.com
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Carstar adds five locations in ontario, one in alberta Carstar Automotive has announced the addition of five new Ontario locations and the re-opening of Carstar St. Albert in Alberta. The LC Group of Carstar Collision Centres includes partners Ian Ladd and Peter Chavez and managing partners, Robin Juns and Tony Taj, all of whom have been in business with Carstar for over 10 years. Carstar Milton Service Centre runs within the service
drive-through at Milton Toyota with vehicle repairs taking place just minutes away at the LC Groups’ Carstar Mississauga 401 location. Milton Toyota is owned and operated by the Gorman family and is a part of the Gorrud’s Auto Group. “We are excited to offer our appraisal and collision repair services to new customers in the Milton area,” says Juns. “This Carstar
Carstar Milton: Peter Chavez, Frank Cundari, Ian Ladd and Robin Juns.
location enables people living in the Milton area to access the benefits of our state-ofthe-art Carstar Mississauga 401 location.” In addition to co-owning the location, Robin Juns will manage Carstar Milton Service Centre. Carstar Newmarket is operated by Tony Taj and is equipped with a variety of specialty equipment to help customers receive the best automotive repair services. Formerly Steve’s Auto Body, a well-established business run by Steve and Rose Sewell, Carstar Newmarket will employ lean processes and best practice operating procedures developed by LC Group with support from their employees and partners BASF, 3M and Carstar. “We look forward to running this business as a well-presented, high quality enterprise that Steve and Rose began over 40 years ago,” says Taj. “Our ultimate goal is to provide a best in class, consistent customer service experience for the driving public and to deliver the best KPIs for our insurance partners.” Carstar Kitchener Shirley Drive, located at 2300 Shirley Drive, is owned and operated by 17-year Carstar Franchise Partner, Tony Koebel. Koebel has been in the collision industry for over 30 years and brings his wealth of knowledge and experience. Koebel also owns Carstar Waterloo. Dave Armstrong will manage the new location.
Carstar Newmarket: Ian Ladd, Tony Taj and Peter Chavez.
18 collision Repair collisionrepairmag.com
“By opening this new location in the city of Kitchener we will help better serve customers and our partners, while continuing to maintain Carstar’s high quality standards,” said Koebel. Carstar Woodbridge Highway 7 is located at 3790 Highway 7 and is owned and operated by multiple Carstar store owner and long-time Franchise Partner, Frank Sottile. This location is attached to the Pine View Hyundai dealership and is Frank’s fourth Carstar store. Since joining the Carstar family in 2000, Sotille has built a strong organization dedicated to serving customers and the community. “We’re thrilled to be opening our new full service collision centre in this rapidly expanding market,” said Sotille. “This is a great growth opportunity for us and we look forward to en-
community again and rebuilding our relationships with our partners.” “Over one-third of our network has opened additional locations, becoming multi-store owners like Tony Koebel and Frank Sottile,” said Larry Jefferies, Executive Vice-President at Carstar. “We hope to continue to build upon our quickly expanding network while also assisting stores that are not thriving to transition out of the business, replacing stores in those regions, with stronger businesses.”
Carstar Kitchener Shirley Drive: Dave Armstrong and Tony Koebel.
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Carstar Woodbridge Highway 7: Frank Sottile.
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hancing Carstar’s quality repair reputation.” Carstar Kitchener King Street (Kieswetter) is located at 4202 King St. East and is owned by the Kieswetter brothers, Mal and Robert. Tim Schuster manages Carstar Kitchener King Street. “We wanted to maximize our resources by becoming a Carstar Franchise Partner, while maintaining the reputation we’ve established at Kieswetter Mazda over the past two decades,” said Mal Kieswetter. “We’re eager to learn more about the processes of Carstar and look forward to a long and successful partnership. Carstar St. Albert has re-opened after closing temporarily for exterior renovations. Located at 2 Riel Dr., the store is owned by Chris Lane along with his parents, Frank and Cathy. Carstar St. Albert strives to follow lean business principles and has equipment and systems to reduce cycle time. “With our processes, expertise and commitment to superior customer service, we’re confident that we will become the first choice for vehicle repairs in St. Albert,” said Chris Lane. “We are excited to start serving our
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CSN Expands in ontario, nova scotia and british columbia CSN Collision & Glass has announced the addition of eight new facilities to the network. Jack Martino and Vince Martino, co-owners of Martino Bros Collision ~ CSN in downtown Toronto, have expanded with a second location. Airport Martino Bros Collision ~ CSN is located at 606 Dixon Road in Toronto. “We enjoy the constant growth that comes with the experiences we receive by being business owners within the collision repair industry. It’s never boring,” says Jack Martino. “When we do the best we can for all of our clients and partners, the satisfaction that comes with it is like winning at the game of life, every day,” adds Vince Martino. Chris Barker and his team at CB’S Auto Tech ~ CSN in VicAirport Martino Bros toria, B.C. have been dedicated Collision ~ CSN. to cultivating positive experiences with every customer for nearly 25 years. “It’s the one thing I enjoy the most about this industry,” says Barker. “The look on a satisfied customer’s face when they come in to pick up their vehicle from being repaired is priceless.” On Line Collision ~ CSN opened its doors for business over 20 years ago as a one-man operation in Langley, B.C. Owner Milt Kruger says success is due to his commitment to offering customers a truly personalized experience. “The ability to service something that has great meaning to the customer and allows them to get back into their daily routine safely and with no future hassles keeps us passionate about the collision repair industry,” says Kruger. After fifteen years as an automotive paint technician, Roger Roy was ready for his next challenge: taking the reins as the full-time owner of Able Auto Body ~ CSN CB’S Auto Tech ~ CSN. in Surrey, British Columbia. As a new business owner with an initial staff of only three people, Roy experienced steady growth and expanded his customer base quickly within the first few years. The time came to expand and open a second repair facility in Newton, B.C. Today, Roy is the owner and operator of Able Auto Body ~ CSN in Surrey and Able Auto Body ~ CSN in Newton. “When customers with unique vehicles come to our shops for their repairs, it’s very flattering that they trust us with their prized possession to get the job done right,” says Roy. The growth of both locations has allowed Roy to be more Able Auto Body ~ CSN actively involved in the Surrey in Newton, B.C. and Newton communities. Roy and Able Auto Body ~ CSN are active supporters of local scholarships, minor hockey leagues and the B.C. SPCA. Located in Vernon, British Columbia, Frank’s Auto Body ~ CSN 20 collision Repair collisionrepairmag.com
has experienced consistent growth for over 35 years and intends to continue this successful trend. “We take pride in keeping our customers informed and updated on their repair progress and generally treating them as we would like to be treated ourselves,” says Matt Brunelle, owner of Frank’s Auto Body ~ CSN. Brunelle emphasizes that quality customer service and paying attention to detail are the key factors necessary to maintain a successful business. Maintaing these qualities can be challenging during growth. “We hope to enjoy the many benefits that come when shops with similar standards and ethics join together as one voice,” says Brunelle of his reasons for joining CSN. Belliveau Collision ~ CSN is one of the longest standing collision repair facilities in Nova Scotia. Back in 1917, Alphie Belliveau was the owner of an automotive service station located within the Church Point community. Now celebrating 80 years in the collision repair business, Belliveau Collision ~ CSN’s owner and operator Claude Belliveau states that the focus and goals remain the same as
G T C o l l i s i o n ~ C S N f ro m Duncan, British Columbia joins CSN Collision & Glass in order to enhance its current business relationships through networking with “the best team in Canada,” according to the facility’s general manager, Jason Stevens. GT Collision ~ CSN. “It is all about positive relationships and customer service experiences,” says Stevens. Stevens says he and his team are driven to deliver a level of professionalism with every customer interaction. For more info, please visit csninc.ca.
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they did all that time ago. “We want to be the leader and professional expert in collision repair,” says Belliveau. Belliveau Collision ~ CSN is the recipient of the 2009 Pineapple Award, an award that celebrates individuals who go above and beyond to enrich visitor experiences. Winners are voted by visitors to Nova Scotia. As the network continues to expand throughout Western Canada, CSN Collision &
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Tomorrow technology, today. REFINISHING PLANTS FOR THE MODERN BODY SHOP Glass welcomes Jack Schultz Auto Body from Prince George, British Columbia. Lee J. Leslie, General Manager for Jack Schultz Auto Body ~ CSN, takes pride in his contribution to the collision repair industry. “We have many new customers that walk through our doors as a result of personal referrals, which is a real testament to the quality of our service,” says Leslie.
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may 2012 collision Repair 21
CSN Collision & Glass Celebrates 10 Years in Collision Repair! Make the right decision â€“ with confidence. And trust a leading group of experienced collision repair professionals to maintain the same high standards you have. CSN Members do what they say they are going to do. Independently owned CSN shops deliver a level of quality that is quite simply unmatched in the industry. CSN Collision & Glass is proud to be celebrating a decade of dedication to the collision repair industry. CSN is committed to building stronger relationships Network-wide with all industry stakeholders in order to continue to exceed customer expectations. CSN is dedicated to deliver on this promise today and moving forward.
To learn more about CSN Collision & Glass, visit us at www.csninc.ca
A Repairer’s Perspective Carstar’s CEO on what you can do to survive and thrive in our changing industry.
he International Bodyshop Industry Symposium exists for one reason: bringing together the top thought leaders and key influencers in the auto claims economy so they can pool their knowledge. In the end, this means IBIS can bring you a level of information you simply cannot find anywhere else. Collision Repair magazine is the exclusive Canadian Publisher Partner for IBIS. Over the next few issues, we’ll be taking a closer look at some of the presentations and reports presented at IBIS recently. Although a key factor to IBIS is its international scope, we’re starting off close to home, by looking at 2020 Vision: A repairer’s perspective, presented by Sam Mercanti, President and CEO of Carstar Automotive Canada. If there’s one thing you can say about Sam Mercanti, it’s that he doesn’t pull any punches. If there are two things, the second would be that he doesn’t flinch from the negative when it’s needed. “First of all, I’ve got good news and bad news,” said Mercanti in the first few minutes of his presentation at IBIS. “I’ll start with the bad news because the way I operate when I go … to work on Monday, and my executive team debriefs me I always say, give me the bad news first and the good news after because then it will make me feel a bit better. So, as far as we’re concerned, I believe that independents will phase out. That’s my personal view.” Mercanti made it clear that this doesn’t mean that every single independent shop will disappear. Far from it. In fact, he believes that the independent shops that do under $500,000 a year, what he calls boutique collision shops, will remain in business. However, it is the mid-sized independents, those doing over $500,000 and less than $2 million a year, that Mercanti believes will drop off the landscape.
“You have to be out of control in your business a little bit or else you’re not going fast enough.” – Sam Mercanti, President and CEO of Carstar Automotive Canada.
Sam Mercanti of Carstar Automotive Canada and David Lingham, IBIS moderator at IBIS 2011.
It probably won’t surprise many people to find that Mercanti firmly believes that the future of the industry lies with networks. “I think the industry, under the network model, will thrive and survive,” said Mercanti. “When I say network, there are three different models of networks. There is the corporate store network. There is a franchise network that we operate – Carstar. And then there are what I call the banner groups, and banner groups are loosely connected. All three have to be managed. The operator or
24 collision Repair collisionrepairmag.com
the owner has to have the ability to influence what happens at the store level.” Mercanti noted that there are about 12 major insurance companies that control about 80 per cent of the business. Canada’s a big place. For those insurers, making sure a customer’s vehicle can be repaired means having between 400 and 600 shops on their program. “That’s a lot of work, time and money,” Mercanti pointed out. “So if I’m an insurer why wouldn’t I make an agreement with three networks and a proper contract in
Become Best in Class
“Best in class, to me, would start from your front image to your landscape, the process inside the shops, technology, environmental, systems and the ability to repair that vehicle right the first time and on time. There are a lot of things that make up best in class,” said Mercanti.
“I really believe that our business will shrink. Sales will go down. And in Canada it was a $3 billion business up to about five years ago; it’s around $2.8 billion right now and it’s going to keep going down – so we must diversify. And we must diversity in three areas:
revenue, services and product. Can we get into glass repairs? What about PDR?”
“What about the role that IT will play in our business? I really believe that IT will be the enabler. If you’re not connected – and I mean connectivity to our insurance partners; I mean to our suppliers. I know that there’s technology right now where our stores can order the parts electronically and they will get shipped to our doors, but it’s changing the behaviours of the people in the store.”
Build Your Brand
“I also believe that in the future consumers will call the shots more and more. If you just keep not performing for that consumer — and I don’t care how many insurance companies you have who want to send you business — you’re going to be done. So connecting to your consumer in the future is very important.”
place with specific KPIs of deliverables; three networks that have 150 locations each and I talk to three people, not 400 to 600? That’s what I believe is going to happen.” In addition to drawing parallels between the demise of local independent hardware stores and the rise of big box retailers, Mercanti also told the story of Polaroid and Kodak, and why one of them isn’t around anymore. He then used these stories to illustrate what a collision facility – or network – must do to stay in business.
Integrating Your Business Within the Supply Chain
“Today it’s about collaboration. And you have to have strategic sessions with your insurance partners, with your suppliers, and you have to figure out who can do what best and let the people do what they do best and get on with the other part of the business.”
Faster. Better. Less Expensive. At a Profit.
“I know a lot of companies that were in business in Canada for 200 years and they’re no longer there. So faster, better, less expensive at a profit is where it has to be. And some people say, ‘Well, you can’t have all four.’ Well, guess what? You’re not going to be in business. It’s that plain and simple. If you don’t deliver – whether it’s product or services – faster, better, less expensive at a profit, you’re going to go out of business. CRM
There’s more online at collisionrepairmag.com. Dive in and find out Mercanti’s views on public insurance, why Kodak succeeded and Polaroid failed and much, much more.
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Profiles of Success
Formula Formula One Collision in Windsor goes above and beyond. By Mike Davey
f you were making a list of what makes Formula One Collision stand out, it would be hard to decide which item should head the list. The facility in Windsor, Ontario
has outdoor bays for when the weather is nice, a concentration on high-end vehicles, tile floors literally clean enough to eat off of, a fully-licensed bistro… Frank and Franco Gobbato, President and Vice President of Formula One Collision. may 2012 collision Repair 27
Profiles of Success
This isn’t a showroom, but part of the production area at Formula One Collision. Tiled floors and chandeliers put a lot of showrooms at auto dealers to shame.
Attention to detail is one of the hallmarks of Formula One Collision. Coupled with a willingness to try new things and keep what works, it’s a winning combination.
Wait a second. What? “In Europe, a lot of the high-end facilities supply lunch,” says Frank Gobbato, owner of Formula One Collision. “We have people come in for lunch and bumper repair. By the time they’re done eating, their car is ready to go. We do different specials every day, and it’s been an amazing marketing tool.” Employees eat at a discount, and it’s popular with local business people. Formula One Collision also has its own garden where they grow their own vegetables. All food is purchased locally to help support local business and ensure that it’s fresh. The bistro is the first thing that stands out as unusual at Formula One Collision, but if you concentrate on that, you’re going to miss everything else that makes this facility truly exceptional. “Frank’s a perfectionist who strives to be the best,” says Dan Dominato, President of Paint Circuit Auto Body Supply. “He’s one
of the most progressive collision repair owners that I’ve ever met. He’s constantly looking for ways to improve.” Formula One Collision is one of only three approved repair facilities for the Lexus LFA in all of Canada. This speaks to the facility’s high levels of quality. The facility also does carbon fibre repair, and has even worked on the very rare Ferrari Enzo. These are just a few of the things that make a walk through Formula One Collision well worth the time. “Each customer that comes in gets a shop tour,” says Franco Gobbato, the facility’s manager and Frank’s son. “We explain to them that it’s really the back end that makes the difference, and that’s a difference they can see. They can go in the back at any point. It’s an open book, and that helps set them at ease.” One thing those customers won’t find in the back is dust. All the cars are detailed every day, and if there’s an opening in a
28 collision Repair collisionrepairmag.com
car, the interior is completely partitioned with plastic. This sort of attention to detail makes people sit up and take notice. When you see others’ vehicles being taken care of that way, you’ll know that yours will receive the same treatment. Gobbato started in the collision repair business at the age of 13, working for this father at a repair facility still doing business in the city of Windsor today. Gobbato left that business in September of 2002. “I was unemployed for the first time in my life,” jokes Gobbato. He can look back on it with a sense of fun, but inactivity didn’t sit well with a man used to working seven days a week on something he loves. “About three months later, I bankrolled my own facility.” Creating that facility gave Frank Gobbato a chance to build the sort of business he wanted from the ground up. “There are things that a lot of people in the industry are doing now, such as blueprinting, and bagging parts, that we started doing years ago,” says Gobbato. “We didn’t learn it from the industry, we learned it from common sense. If you take off a headlight, and it’s got three screws, put them in the bag. If there’s one bigger screw in a particular position, then mark that screw. I tell my techs ‘If you pass away on me tonight, the next technician can take over and know just what to do.’” Attention to detail is one of the hallmarks of Formula One Collision. Coupled with a willingness to try new things and keep what works, it’s a winning combination. “We always try to find new ways to do things. With waterborne, we never followed the directions. We did research and experimentation to find the right colour and texture,” says Gobbato. This isn’t the only research that Formula One Collision has done. “We work with the University of Windsor’s people on some projects,” says Franco Gobbato. “We also do R and D in-house to look at new techniques for welding, splicing and painting. It helps to keep us ahead of the competition.” You might not expect research and development from the average collision repair facility, but Formula One Collision simply isn’t average. The facility also has an in-house training centre to make sure skills stay top-notch. “We come from a family of craftsmen who have been doing this a lot longer than I-CAR has been training,” says Gobbato. “Every vehicle that comes in has been repaired to manufacturer specifications, and
Profiles of Success
The staff of Formula One Collision. From left to right: Robert, Shaun, Gary, John, Josh, Gillian, Hilary, Janna, Joey, Jola, Bonnie, Steve, Ryan, Wayne, Jamie, Frank, Franco, John and Art.
The fully-licensed bistro at Formula One Collision is a popular lunch destination for local business people.
Wayne hard at work in the restoration bay.
that includes using manufacturer approved tools and welders and such. We don’t take shortcuts. If it’s a car with a five-star rating, we want to give them a five-star car back.” It’s an attitude that has resulted in the facility being the preferred vendor for repair work to a wide range of luxury brands such as Jaguar, Mercedes, BMW and Land Rover. It’s also garnered attention from the insurance industry. “We’re preferred by some of the higher end insurance companies,” says Gobbato. “Some insurance companies want the repairs done right, and they’ll pay, but it seems like some companies don’t really want the cars repaired the way they should be. Some will fight to skip steps that are necessary. We don’t back down.” When it comes to protecting his customers’ investments, Frank Gobbato is a fighter, but it’s not really about the money. “The repair process has changed dramatically. Cars are very specific, and you’re putting
your client in jeopardy if you don’t follow the right procedures,” says Gobbato. “We in the collision business are being trusted with the safety of our customers’ families.” That means having technicians and painters you can trust. Working at Formula One Collision has a lot to offer techs, from in-house training and a great place to have lunch, to the outside bays hooked up for power and water. Make no mistakes, though, there is nothing cushy about these positions. If you don’t fit, don’t expect to be kept on. For example, Gobbato tells the story of a young, highly talented tech who they were considering for a position in the facility. “The problem was that he’s good, but I also know that he starts problems, so I though we would give the staff a chance to voice their opinions. Not one person voted to have him working here,” says Gobbato. From that point on, every new hire’s final interview was with the whole shop.
It might be a bit intimidating, but it results in only adding team members who will undoubtedly be a good fit. “If you’re just here for a job and a good paycheque, then you’re not for us,” says Gobbato. “You have to want to work here, and you have to want to keep it a nice, friendly environment. We don’t have turnaround of our top-quality people.” The fact of the matter is that high-end customers expect a high-end facility and that’s what they get at Formula One Collision. Extreme cleanliness and the latest equipment go a long way, but staff appearance is of major importance as well. Customers at Formula One Collision see office staff wearing shirts and ties, and production staff wearing clean, distinctive uniforms. “The only guy who looks like he doesn’t belong here is the boss,” says Gobbato. “If they ask me what my position is here, I tell them I’m the janitor.” CRM may 2012 collision Repair 29
Phoenix Speed and maneuverability at the PPG MVP Conference in Arizona.
ou l d you d e s c r i b e your organization as a zeppelin, balloon, bottle rocket or jet? According to Vince Poscente, the answer is crucial. Poscente, a businessman who decided to compete in the Olympics at age 30, was one of the keynote speakers at the PPG MVP Conference in Phoenix, Arizona. The conference started on Sunday and concludes today. For Poscente, there’s really one option worth pursuing: that of the jet. “Jets,” in Poscente’s terminology, are individuals and companies that are aligned, agile and aerodynamic, meaning they respond the best in today’s age of speed. The PPG MVP bi-annual Business Solutions Conference is currently underway at Pointe Hilton Tapatio Cliffs Resort, a Spanish-Mediterranean-designed, all-suite mountainside resort in Phoenix. Events got under way Sunday with the MVP Golf Tournament at Lookout Mountain Golf Club. For those who prefer classic automobiles to hitting the links, a tour of Desert Valley Auto Parts promised to transport attendees back in time to view the facility’s collection of hundreds of classic cars. Knowing the members of the collision industry, this must have been a hard decision to make. The first day concluded with a Welcome Reception where attendees could visit with service and product providers. The second day of the conference kicked off with a welcoming address by Jim Berky of MVP Business Solutions, followed by opening remarks by Greg Benckart, PPG’s VP Automotive Refinish NA. Vince Poscente followed, as the first of three keynote speakers. During his hu-
mourous and energetic presentation, he outlined his theories on how individuals and organizations fall into four basic groups (zeppelins, balloons, bottle rockets and jets) and the significant attributes of each. The Trade Show portion of the PPG MVP Conference opened featuring exhibits from 3M, Alldata, Accurdraft, Audatex, AutoHouse Technologies, CCC Information Services, CEI, Col-Met, DeVilbiss, Global Finishing Solutions, Goliath Carts, Hedson Technologies, I-CAR, Infogroup, ITW Evercoat, Mitchell, Nova Verta, Summit Software and Tsunami. After the first break, stakeholders were given the option of three seminars: Delighting Customers for Life – Part 1, presented by John Martin and Sharon Gregory of PPG Business Solutions; Discovery and Parts Procurement: The Key to X-Ray Repair Planning Excellence, a session facilitated by Mark Mueller and Tom Nicholas of PPG Business Solutions; and Down to Business, Up to Speed, presented by Vince Poscente. The conference broke for lunch and another opportunity to visit the Trade Show. After lunch, it was back to work, with attendees choosing from the same three seminars offered in the morning. After another break and trade show visit, the second keynote speaker was introduced. Joe Calloway led attendees in a dynamic session of thinking, working and engaging with new ideas in his keynote, entitled Minds Wide Open. One key of a mind wide open i s t he p a ss i on ate Don Strong of Concordia Carstar in one of the seminars.
30 collision Repair collisionrepairmag.com
curiosity that drives people to look outside their comfort zone for new ideas, and the creative power that comes from not knowing what you can’t do. The second day of the PPG MVP Conference concluded with a Gala Dinner, with entertainment provided by the Stacy Mitchart Band. The final day of the PPG MVP Conference started early, with a morning workshop session. As with the seminars the day before, workshops were repeated during the afternoon to allow stakeholders to attend more than one. Four workshops were presented: Delighting Customers for Life – Part 2, presented by Sharon Gregory and John Martin of PPG Business Solutions; Paint Shop Throughput: A Quick Changeover Approach presented by Brett Bialowas and Robb Power of PPG Business Solutions; Zeroing in on Standardization, presented by David Knapp and Mike Gunnells of PPG Business Solutions; and Open Discussion Group—Your Topic, Your Discussions, facilitated by Mark Mueller, Frank Lefebvre and Bruce MacKenzie of PPG Business Solutions. The Open Discussion workshop provided collision repair professionals with the opportunity to interact with peers to address business challenges. This was a free wheeling session where the floor was open for all ideas on the business of collision repair. The faNeil Weir of Max cilitators helped to keep Auto Supply takes some time the discussion on track, out of the busy but this session was all schedule for socializing with about the ideas of the other attendees. repairers themselves. Michael Broome was t h e cl o s i ng ke y n ot e speaker for the PPG MVP Conference. Broome gave a humourous and encouraging perspective on service, teamwork, accountability and leadership. According to Broome, no matter what business we are in, we’re really in the “People Business,” and those skills are more important than every during tough times. Broome provided a number of funny examples that lead to applicable ideas about enhancing relationships with employees, peers and customers. Conference awards and closing remarks followed Broome’s keynotes. For more information on PPG MVP Business Solutions, please visit ppgmvp.com. CRM
Cheryl and Gus Stavropoulos of Fix Auto Yorkdale.
Norm Angrove, Greg Benchart and Rob Rukavina of PPG.
Simon, Mina and Bud Bajric of Fineline Collision ~ CSN.
Mike Mario of Regina Auto Body deep in discussion with Mike Gilliland of AutoHouse Technologies.
Michael Lampshire and Brandon Lowder of GFS at the GFS booth in the PPG MVP Conference trade show.
Vince Poscente was one of the keynote speakers. He also ran a seminar titled Down to Business, Up to Speed.
Father and son Mario and Justin Menna from Elite Auto Collision in Toronto. This was their first time attending a full-scale PPG MVP Conference.
Sandro Perruzza of Garyray Auto Collision in Weston, Charlie Bathurst of PPG, Dave and Linda Procunier of Heartland B & B Collision and Rafael Hinojos, Director of Automotive Refinish for PPG Canada.
Derrick Ryan of Garland Auto Body and Tom Bissonnette of Parr Auto Body in conversation during a break in one of the presentations. One of the advantages of the PPG MVP Conference is the chance to network with peers.
One of the social events included a tour of Desert Auto Parts and its collection of hundreds of classic cars. From left: Barb and Tom Bissonnette and Derrick and Kathy Garland.
Linda and Dave Procunier of Heartland B & B Collision Center.
Jim Berkey of PPG MVP Business Solutions opened the conference.
Darryl Simmons, publisher of Collision Repair magazine, and Patricia and Mike Srigley of Quality Assured Collision Services in B.C.
Mark Algie from 3M and Rick Tuuri of Audatex.
Melissa Girard and Beth Kassabri of PPG Industries and Lianne Perissinotti, Program Manager, Value Added Programs for PPG Canada.
may 2012â€‚ collision Repairâ€ƒ 31
HOW TO CHOOSE
Choosing a network is an important decision. Fix Auto has put together this exercise to make it easier. Rate three networks, and compare the results.
Rate the networks from 1 to 10 on each of the following criteria, then add up the totals. 0 points — hopeless
6 points — good
2 points — weak
8 points — very good
4 points — average
10 points — excellent
Networks > 1
Freedom of action
Training and support
Relations with insurers
10 Innovation and technology
total per Network / 100
Any network thAt scores lower thAn 75 points will not live up to your expectAtions.
trends Formerly exotic materials are becoming increasingly commonplace, and not just on luxury brands. The all-new Ford Explorer features a weight-saving aluminum hood.
Efficient Autos, and
Fuel Prices New & Used Cars Some of the trends that will affect your business in 2012. By Michael Pistol
n recent repairable estimates, parts make up approximately 44 percent of the cost of the repairable estimate. Labour comes in at approximately 43 percent, with paint and materials rounding out the total. However, according to Mitchell Canada, for Q4-2011, all parts types fell in usage when measured by the number of parts used in the average repairable estimate — declining when compared to the same quarter in 2010. New economy, social and technology data suggests that the current state of our industry is about to change – and in a few areas, radically. One trend that is already having an affect on your collision business is the tendency (and necessity!) of the OEM to chase higher mileage.
You have probably already observed the proliferation of exotic alloys, titanium and aluminum. Newer vehicles are geared to reduce their weight and save fuel, and the OEM are introducing more aluminum panels on vehicle architectures. The main reason for this is the never-ending quest of the OEM for higher fuel efficiency. The 2012 model year also marks the first step in a 5-year march toward compliance with federal fuel-economy regulations of 35.5 mpg (6.6 L/100 km), which will cost the industry about $50 billion to achieve. After 2016, automakers will begin working toward a fuel-economy standard of 54.5 mpg (4.3 L/100 km) that by 2025, will cost the industry $150 billion. Advanced technical knowledge of the types of metals, electronics, hybrid tech-
Hood, fenders, doors, rear panel, trunk lid, and the front and rear modules of the new S-Class are made of aluminum.
nology and the step-by-step O E M r e c ommended repair procedures will be necessary. This will be needed to completely assess the full extent of damage to the various complex electrical and drive systems before a carrier can authorize repairs. The U.S. Center for Automotive Research (CAR) studied the impact of CAFE standards and predicted that start-stop technology will be in roughly 36 percent may 2012 collision Repair 33
It isn’t just BMW using more carbon. The Camaro ZL1 Carbon Concept (which goes on sale in early 2012) has unique, exposed carbon fiber details on the hood extractor, rear spoiler, and interior components.
of vehicles by 2025 to meet the aggressive CAFE standard. The CAR study estimates that 35 percent of vehicles in 2025 will be hybrids. Expect the same ratio in Canada, albeit a touch smaller. The quality improvements in light vehicles over the past two decades have resulted in a huge increase in survival rates of light vehicles in Canada. Some 43 percent of passenger cars now last at least 15 years, and about 60 percent of light trucks last at least 15 years as well. These long lasting vehicles have resulted in a huge increase in vehicle ownership in Canada – a mixed blessing for the Canadian collision industry. Thus, virtually every analysis concludes that the number of cars per facility is declining. About four Canadian-based networks now process close to 40 percent of the industry’s repairs, and the collision industry’s consolidation is reaching its pinnacle – especially in the light of collision shop retiring baby-boomers. However, shops in western Canada may be luckier, because of labour’s increased mobility.
Shifts in demographics, housing locations, and work environment (telecommuting) have all reduced needed kilometres driven, perhaps for the very long-term. Adding pressure to the decline is the more than 100 percent increase in gasoline prices since 2003. Even if gas prices ever returned to 2003 levels, anecdotal evidence suggests that many North Americans are moving closer to mass transit and moving closer to their jobs. Recently, the Bank of Canada held its key-borrowing rate unchanged at 1 percent amid concerns that high oil prices could undercut into Canadian economic conditions. But jitters over Middle East (Iran) oil supplies have seen gas prices rising in Canada, and that could hinder the nascent recovery. As we pass $1.28 per litre of gas, delivery costs for collision parts will be affected as well as they also need to be
transported. This price dynamic will affect the smaller shops first.
The rising prices of used vehicles for the collision shops is overall good news indeed. The sharp rise in used car prices, in particular small fuel-efficient vehicles, means fewer vehicles with moderate damage ending up as economic total losses. Therefore, remanufactured parts, primarily alloy wheels and bumper covers, may also see a reduction in the availability of usable cores and a rise in prices. The availability of used vehicles less than five years old is plummeting, so prices are increasing very fast. The primary sources of supply for younger used vehicles are vehicles coming off their lease or out of corporate fleets. During the recession, fleet sales were down substantially and leasing collapsed entirely. There was a serious shortage of vehicles available for resale, and the supply resulted in much higher used vehicle prices. With very high used vehicle prices a lot of consumers could embrace a new vehicle, especially if they were able to lease. However, the availability of better quality but very cheap older used vehicles was at the source of this sudden spurt in growth. Canadians bought a record number of new vehicles during the early part of the last decade. There are a record number of middle aged used vehicles in Canada, and prices of these vehicles are falling. This development may push a number of consumers driving older vehicles to move to a middle age used vehicle – and here’s the really good news for all collision shops across Canada.
New Vehicle Sales
As new vehicle sales recover, a greater portion of the vehicles on the road will carry collision coverage and are more likely to
34 collision Repair collisionrepairmag.com
show up in a repair facility after an accident. Auto sales are up an astounding 13 percent so far in 2012. The gains have been echoed south of the border where sales hit an annualized rate of 15 million units in February, the highest point in almost four years. But the resurgent sales are also the result of pent up demand, in particular in the U.S. where the average age of vehicles on the road has hit a record 11 years, much less than Canada’s 15 year average. Don’t forget that about 80 percent of the Canadian vehicle production is destined for the U.S. markets. Speaking of which, auto manufacturers posted a 74.1 percent capacity-utilization rate in fourth-quarter 2011, the best since 75.3 percent in 2005. The rate was 62.6 percent in the fourth-quarter of 2010. Light vehicles sales in Canada have hit an annualized rate of roughly 1.7 million units for two months running as a result, also their best performance since early 2008. Cars sales in Canada have spiked 22 percent year-over-year in the first two months of the year, while truck sales have improved by just 7 percent. Canadian consumers who would typically purchase a newer used vehicle are being pushed into the new market as well. Leasing is also up. The OEM-backed dealer-incentive may have driven the new car sales higher then it would have been otherwise. The same holds true for the U.S. market. Also, note that higher new car sales in the U.S. may be temporary, due to the unusually mild winter, which saved consumers hundreds of dollars in heating costs. However, temporary or not, the flood of new vehicles in the Canadian marketplace must be considered really good news for the collision industry. These trends are here to stay. I can easily see a new wave of consolidation sweeping through the collision industry, all related to investments in new equipment and technologies needed to repair the increasingly complex modern vehicles. Canadian-based networks now process close to 40 percent of the industry’s repairs. It won’t be a major stretch of the imagination to see a 50 or even 60 percent concentration of volume in the hands of a few networks. Prepare yourself… CRM Michael Pistol is a graduate of Polytechnic Institute in automotive engineering, and the founder and publisher of TJAA, Canada’s automotive magazine. He is also the founder of Red Code automotive conferences and TJAA Automotive Analytics Group.
History in Pictures By Mike Davey
A look back at the second half of our first ten years. It’s still hard to believe that we’ve completed ten full years of Collision Repair magazine. The industry has changed, and continues to change and grow, in ways that have made it better, stronger and faster, and we’ve been there with you every step of the way. We’ve shared a lot of triumphs over the years, and what seems like more than our fair share of tragedies. There’s a very natural human tendency to view history though rose-coloured glasses, but let’s be honest: this industry really has done great things. Thanks for joining us as we look back at some of the most interesting photos from 2007 to 2011.
The management team at Fix Auto Central PEI. From left: Marvin, Paul and Mark Weeks. Fix Auto Central PEI was the first Fix Auto in the province.
At a PPG MPV conference in 2008. From left: Charlie Bathurst, Frank Lefebvre and Stan Siemes of PPG (in blue shirts), Dan Clifford, Tom Bissonnette, Ken Friesen and Greg Mario. Front row: Ron Thompson and Norm Angrove.
Sam Piercey. Co-owner of Budds’ Collision Services proudly displays the plaque given to his facility for their support of the skilled trades and apprenticeships in 2007.
At the 10th annual Carstar Conference in 2007: Sam Mercanti, President and CEO, Carstar Automotive Canada; Nicky Wenzel, Enterprise Rent-A-Car; Dave Lush, VP Operations, Carstar Automotive Canada and Bill Knowlton, Enterprise Rent-A-Car.
Shane Campbell (centre) of City Centre Collision ~ CSN receives the Top Member Award at CSN’s 2011 conference. Presenting the award, from left: Mindy Kunkel, Jay Hayward, Larry French and Flavio Battilana of CSN Collision & Glass.
may 2012 collision Repair 35
ve i n
From top to bottom, left to right: Derrick Ryan of Garland Auto Body and Marty Reddick of Supreme Collision. At the opening of DuPont’s Quebec training centre in 2007. From left: Francis Scarpaleggia, Bill White and Ray Anderson of DuPont and Bill McMurchise. Tony Aquila, CEO of Solera, was one of the keynote speakers at IBIS 2007. 2006 saw Collision Repair recieve an opportunity no publication ever had when we were invited into 3M’s manufacturing facility. Doug Roberts of Fix Auto Barrie. Roberts’ shop won an award for highest sales growth in Ontario in 2008. Some of the Canadian contingent at NACE 2008. Devon DeBoer competed specifically in auto body repair as one thirty-eighth of Team Canada at the WorldSkills 2009 competition. PDR at Ryding Auto Body in 2009. From left, Mark DeLorenzo, co-owner of Ryding Auto Body, and Phil Cordiero and Sam Piercey Jr. of Auto Dentist. Key insurance players tour three Ontario recycling facilities to get the real story on auto recycling in 2007. Daniel Green was Canada’s Car Painting contender at WorldSkills 2009.
36 collision Repair collisionrepairmag.com
From top to bottom, left to right: Lord Fusor’s Tyler Zacher-King and Kevin Creegan at a training event at Dana’s Collision Centre ~ CSN in 2010. Centennial College, the automotive program graduating class of 1978. We ran a story on this class in 2008, highlighting how many of its grads were still in the business. Tony Canade of Assured Automotive and his wife Mary. OARA raised over $123,000 for children’s charity the Sunshine Foundation in 2011. PPG’s David Knapp and Norm Angrove at NACE in 2010. Hazel McCallion, mayor of Missisauga, cuts the ribbon at the grand opening of AutoMACS Collision ~ CSN second location in Mississagua in 2009. Behind McCallion are Mary Ingoglia, Chris Endras, Adrian Ingoglia, Mark Indreas and Steve Ingoglia. Ken Carter, Mike Srigley and Mike Boyko in 2008. Gary Evans, Ivan Tolfa and Sylvan Naidoo of Atlantic Collision Group holding a cheque for $15,300 raised in support of Peel Children’s Safety Village during ACG’s 2010 golf tournament. Roland Taube and Viktors Trence. Denis Pinette of MPI, Wilf Bedard of RCAR, Ted Hlynsky and Ray Kroll of MPI from a 2011 article on how insurers influence car design.
may 2012 collision Repair 37
Jim Morton eliminates the impossible with an old methodology.
By Raisha Karnani
t NACE 2011, Jim Morton of Morton’s Automotive Technical Services exhibited his approach to the technical side of automobile repair, which he named the “The Sherlock Holmes Diagnosis”. Morton and his wife Mar y own and operate Morton’s Automotive Technical Services, which offers training seminars for working technicians. With more than 30 years in the industry as a technician, shop owner and trainer, Morton holds ASE Master Tech and L1 certifications and is a member of CAAT and STS. “The Sherlock Holmes Diagnosis” is a spin on an old idea which provides those in the automobile service industry with a new methodology for repairing cars. The popular statement from the fictional detective, “If you eliminate the impossible, whatever remains, however improbable, must be the truth,” can be summarized in two words for Jim Morton – reverse engineering.
Holmes with a wrench
Reverse engineering turns automobile technicians into “Sherlock 38 collision Repair collisionrepairmag.com
Holmes with a wrench,” as technical writer and personal friend to Morton, Joe Woods, termed it. In essence, the idea of reverse engineering is to examine the problem with the automobile, suggest possible diagnoses for what could be causing the problem and run diagnostic tests on the specific area of the car that has the problem to eliminate as many of the suggested diagnoses until one is left. This will enable collision repair technicians to repair the underlying cause rather than just fixing the problem. However, this is just a general overview, and Morton emphasized that there was more to it than that. “If you’re looking for silver bullets…silver bullets don’t work.” Morton warned his audience. “I developed a strategy where I don’t have to worry about making money.” The first step of reverse engineering, he explained, is to fully understand how a particular system works. “Once you understand how something works, it’s pretty darn easy to know what to do to fix it, or even if it’s broken.” He described it as taking the time to “Know your opponent. Take a little time to save time.”
When a client comes with their vehicle, “Don’t talk to the person who is the ‘most convenient,’ I need the person who drives the car.” Morton stated firmly. This is because only the person who drives the car every day is going to notice the real problem with it and explain it best. “I got an interview sheet from talking to a customer; on the back of the interview sheet, I have my notes from my basic tests.” These basic or general tests are half of what “made my shop profitable.” Morton swore to those assembled. The other half is what he calls “pinpoint tests”. General tests are run in order to find out whereabouts the problem is, on or inside the vehicle, which then allows technicians to run pin-point tests in order to, yes, you guessed it, pin-point exactly where and what the problem is. Morton explained that he has a ratio for what technicians should know about a car – 85 percent-15 percent. “85 percent is all the same stuff that happens in a car,” he expounded, which refers to the customary overall structure of cars. “15 percent is how that particular manufacturer makes the car.” This refers to the knowledge that might have to be looked up online, because every manufacturer makes their car different, just as technicians will go about their job in different ways. While Morton encouraged technicians to carry out their jobs in the most comfortable way for them, they should have a strategy that utilizes the tips he suggested in his presentation. “You’ve got to have a plan. It’s the only way in the world.” As if to prove his belief in this, he explained that on the “First day [of his eight week advanced program] I give everyone a small jigsaw puzzle…how you learn to put that puzzle together, how it works for you, that’s what you want to go with.”
Running diagnostic tests on the automobile should be carefully conducted, just as a doctor would run diagnostic tests on a patient. Morton advised those in attendance at his presentation that when they run tests, they should be able to diagnose the problem after comparing their results with “what the results should be.” Morton explained that in order to understand “what the results should be”, technicians should understand how each component of the car works in conjunction with the others. Once those relationships are understood, it is then easy to compare them with the test results to conclude exactly what the underlying cause of the problem is. While it would be very easy to simply mend the problem and send the customer on his way, if you can fix the underlying cause of the problem, you can do your customer a favor and prevent him from making any more visits in the future for the same problem. However, “your diagnosis is only as good as the quality of your tests.” Morton cautioned. Using a personal example, Morton described how his heart condition was tested in Philadelphia, New York and Washington and how it wasn’t until he was tested at the Mayo Clinic before doctors told him that it was reparable, in spite of the same tests being done at each location. “So what was the difference? It was the quality of their tests.” Reverse engineering is a precise science, because, at its core, it’s deductive reasoning, and if you put garbage in, you get garbage out. Therefore, the input and the process of testing are incredibly important. That, in a nutshell, is Jim Morton’s “The Sherlock Holmes Diagnosis.” Well, Watson, you know the method, so now it’s time to apply it in the shop. The game’s afoot! CRM
Elementary, my dear Watson
1 2 3
Reverse engineering is essentially a method of diagnosing damage that relies on deductive logic. Damage done to a particular vehicle at a particular angle may give the technician clues. Fully understand the systems you’re dealing with. A deep understanding of systems will allow you to predict how those systems will behave. Strive for 85 percent/15 percent knowledge. 85 percent is general knowledge of vehicle structure. 15 percent is that particular car.
For Spraybake OEM parts service and technical support,
may 2012 collision Repair 39
Women of the industry
of InterCity Autobody
Robbie Mydonick knows the value in brand recognition and social media in the collision repair business.
Women’s Industry Network (WIN) is a not-for-profit organization dedicated to encouraging, developing and cultivating opportunities to attract women to collision repair while recognizing excellence,promoting leadership, and fostering a network among the women who are shaping the industry. Collision Repair magazine is pleased to announce that Robbie Mydonick and every woman profiled in our Women of the Industry section will receive a membership to WIN.
By Amanda Skopec
obbie Mydonick is the Marketing & Business Development, Social Media, Sales person for InterCity Autobody. Not only that, she is also the voice of its commercials. Working for the company for over six years, Mydonick and her father have established InterCity Autobody as having recognizable expertise in the collision repair business in Winnipeg. Mydonick’s first exposure to the auto industry started at age 13 when her father Jim, a refinishing technician of over 20 years, first rented a one bay hobby shop 12 years ago. Mydonick and her father increased the size of the hobby shop from one bay to three, and in 2005, InterCity Autobody grew into a full time father/daughter business, expanding into what is now a 9,000 sq. ft. facility. “There is no typical day here for me.” Mydonick says, as she discusses all of the achievements she has accomplished over the years. She is in charge of all out bound sales, voicing all of its commercials, and making sure to keep their brand familiar. “Our advertising is tailored heavily toward the website to keep the brand indentified,” Mydonick said. “All of our commercials have our jingle’s tag to our website. It’s that catchy jingle that keeps new customers coming.” As well as managing the radio advertising, Mydonick sees the value and focuses a large majority of her efforts in social media and business networking. “Social media is one area where the industry lacks … people don’t see the value in it,” Mydonick said. You can find InterCity Autobody’s mission statement on its Facebook page, ‘Constant and never-ending
If there’s one thing Robbie Mydonick knows, it’s how to craft an image.
improvement’ is our mantra! Our commitment to quality makes us tick.” And that is just one example of how Facebook helps to spread the word of quality work InterCity Autobody is committed to providing to their customers. “It also allows our ‘fans’ to know and trust InterCity, see our photos, have a good laugh with a post, or find out some new and important information, It gives us online personality.” “I am very proud of our fan base,” Mydonick says. She is a big proponent of social media, extending her efforts to promote InterCity Autobody on LinkedIn, as well as Facebook. Mydonick extends InterCity’s success in its ability to reach people through these venues. “It grows every day,” she says of her ability in targeting InterCity’s demographic on Facebook. Their fan page, started
40 collision Repair collisionrepairmag.com
four years ago is up to 650 “likes.” Mydonick, educated at Red River College in Business Administration, likes the variety and excitement in her job, in that there is always a new challenge. She finds it very gratifying helping people. Her biggest challenge, because she got into the business at such a young age, has been gaining the respect and acknowledgement from the people she encounters in the business as a young female. She now helps young business students as a mentor in the Red River Business Admin Program, primarily the entrepreneurship practicum. She focuses on sharing her experiences to help students overcome their own obstacles in business. For information on the company, check out their website at intercityautobody.com. CRM
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partnerrespect Looking after your own interests is not the same as being evil.
By Jay Perry
met with another professional recently over coffee to discuss the consulting business and explore some cross-referring we could do with each other. What struck me as intriguing is how many things all businesses have in common. We discussed many things as far as challenges, results, commentaries, objections confronted and a host of others. I was reminded of conferences in our industry and how, if everyone really listened, we are all facing the same kinds of challenges. I know we all like to think of ourselves as unique, and to some degree we are. Overall though, we are much more similar than we are different. I see some members of our industry on the repair side blame the insurance companies for problems of profitability. I see the insurance com-
(insurance or private) have to respect the history of the business and the investment that goes into building it to the current state of success and their right to make a profit on that investment. I am not talking about the outliers who are skirting the law (not paying all taxes, hiring illegal workers, non-compliance on health and safety, etc.) to contain costs, but those that have examined and continue to examine the way they do business and continue to educate themselves and their staff to take a leading role in legitimate ways. In the long run everyone wins if the honest shops that work hard and reinvest are the ones that are supported. The short-term, myopic insurance company rep will look only at the costs and assume they win. In the long-run, when their
It is fair to expect a return on investment on both sides of the coin. pany reps unfairly accuse owners of “laughing all the way to the bank.” The truth is neither is reality. Insurance companies are under pressure to perform financially for their owners, so they will look for ways to contain costs. Business owners, by way of statistical proof, hold a 1 in 10 chance of making it big in business. In other words, they take great risk in starting a repair facility. So if you look at the above from a “What’s fair?” perspective repairers should be constantly looking for ways to strip costs out of the process to accommodate a holding of the line on costs for insurers. On the other side of that coin, there is no room for resentment of successful shops that invest, reinvest and work extremely hard for many years to climb into that category. It is fair to expect a return on investment on both sides of the coin. So suppliers (repairers) should be working on ways to reduce their costs so they can hold the line on pricing. That provides better negotiating and buying-power through a variety of strategies. If you can have the lowest cost-factor, you can use that cost-leader to solidify relationships to keep customers (insurance or private) coming to your door. Customers 42 collision Repair collisionrepairmag.com
customers abandon them for other companies that can offer better services in similar products, they will spend more money on marketing to attract the replacement customers. I think that is the immediate opportunity for all the stakeholders in the industry to work together. The suppliers and shops need to work on stripping out costs. Insurance reps have to participate in streamlining processes to reduce costs and allow for profits that leave funds for reinvestment. I think there are some really smart insurance reps out there (you know who you are) because a conversation I had recently was all about rewarding shops for superior service levels with paid credits for education programs. What a spectacular way to create an upward spiral! These are tomorrow’s leaders as they are demonstrating respect. They are who’s driving. CRM Jay Perry is the founder and owner of Automotive Business Consultants (ABC), a performance coaching company specializing in the automotive service industry. He can be reached via e-mail at email@example.com.
point blank with piercey
Recognition Some “partners” are more committed than others. “Our Focus is Spray Booth Filters!”
By Sam Piercey
ell, it’s time to say thank you and job well done to one of the most vital and important parts of the finished repair. Without blowing smoke up anyone’s butt, I must commend the paint company BASF for a job well done, and for producing the excellent products that we use at Budds’. The customer never sees or looks at the damage repaired on the finished product as closely as he looks at the paint finish and colour match. That is really the most important part to the customer. When he picks up and sees his finished vehicle and
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We can learn from BASF if we understand that they play a big part in reducing our cycle time to get that better, faster, cheaper way to move the cars and increase our throughput. The crew at BASF works very hard to see, hear and touch our operations, and they know that time is a major part of getting the cars out the door. In the simplest possible terms, they get it. I’ve always felt that they want to know what I feel and think, and that we greatly respect and thank the “paint guy” and his product. BASF is very active with insurers, along with sponsoring different activities in your
word of mouth is what makes or breaks your business. sees a great paint job, this plays the best possible ending to the repair process. Don’t forget, word of mouth from your customers is what makes or breaks your business. Great partners, such as all the techs and lab people, management, reps really make a difference when it comes to getting an xtraordinary finish that makes the customer super happy! At Budds’ we cannot say enough about what these people and their products have done to make our lives easier. The work they do helps to make us proud of what we do. We struggle very little with the colour map system and the tints, along with the amazing clear coats that blend and polish with little effort. The tech response time on any “problems” when cars have non-OEM finish to try and match is above and beyond my expectation. Part of this is probably because of the Six Sigma effect on constant improvement that BASF provides in moving forward and training on new employees and helping to push the cars through for cycle time.
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community, helping with innovating new products and overall making life a pleasure. We at Budds’ are constantly trying and testing new product. The paint systems from BASF continue to provide great satisfaction, and I know from talking to other repairers that the paint systems they use in their shops also deliver great results. Have you thanked a paint rep today? Have you told them how well they and their products work for you? Or do you take the great products and service for granted? Once again, thanks BASF for a great partnership. In a world where a lot of different companies want to be “partners” to your collision repair facility, BASF and the other paint companies really come through. They don’t just talk the talk. They’re out their every single day, walking the walk and helping you do your business better, faster and cheaper. CRM Sam Piercey is the co-owner of Budds' Collision Services in Oakville, ON.Samisalong-timeCoyotemember and sits on many boards and committees. He can be reached at firstname.lastname@example.org.
Bigfour The major social media networks all have different strengths.
By Jonathan Barrick
ou know that social media is important to the future of your business. You know that conversations about your brand and about your industry are happening whether you’re there or not, so you better get involved. I assure you that if you don’t, your competitors will be more than happy to talk to your customers for you. But how do you know which social media networks you should really be present in? It’s not as complicated as you’d think. Just like any other communication tool, each one has a different audience and a different format that lends itself to a particular purpose. Let’s start by taking a quick look at the “Big Four” social networks, and what they’re all about: Facebook - This 800 million-member-strong behemoth is the biggest game in town. There’s no way you can avoid Facebook, because it’s guaranteed to have a large portion of your customers. Many businesses set up their Facebook page as the hub of their social activity. You can easily post and share any type of content from other sites (video, pictures, links, articles, etc) and users can interact in many ways (Like, Share, Comment, etc). It’s a very robust platform that also provides powerful statistics businesses can use to analyze their audience demographics. Twitter - There’s a lot more to Twitter than what people had for lunch or the latest news on Kim Kardashian. Twitter is a rapid-fire, never-ending stream of information sharing. Within Twitter, there are subcommunities of users dedicated to specific topics and industries. For many businesses, Twitter is a crucial tool for obtaining and sharing the latests news and industry updates. Twitter keeps things very concise and easy to digest at a glance. YouTube - The undisputed king of online video, YouTube is the second-largest search engine in the world, second only to Google. In addition to all those cat videos your friends email you, YouTube is also a massive archive of technical videos, how-to’s, news, product reviews and event coverage. YouTube allows posting of original content, as well as the curating of content through user channels. Some popular users on YouTube don’t create any original videos, but instead gather and curate the best videos, becoming the go-to source for content catering to a specific topic of interest. LinkedIn - If there’s one network that you may not have heard of in the “Big Four,” it’s probably LinkedIn.
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With over 150 million members, LinkedIn is dedicated entirely to business professionals. While part of LinkedIn’s function is to be a type of online resume, it also provides a vast array of other tools used to network, learn, discuss, and connect with other professionals. The groups and discussion boards cater to experts in their fields. If you’re looking to connect with fellow pros, then LinkedIn is the place to go. Using these networks is much less about “how they work” and much more about “how they work FOR YOU.” For each network, the first question you need to answer is “what value can I provide?” If you’re not giving your audience something of value, then you won’t be able to grab their attention. Here’s a few examples of how some collision repair facilities might approach posting content and potential uses for each channel: Facebook - Before/after photos of major repairs or refinishes, links to helpful car care information, weather/road work/traffic status updates, sports team sponsorships, vehicle auction information, etc. Twitter - Links to helpful car care information, insurance company updates, links to your photo galleries, local automotive events, safe driving tips, etc. YouTube - Custom car videos, racing team footage, car show exclusives, news coverage, industry event footage, testimonials, time-lapse repair videos, before/after repair videos, etc. LinkedIn - Discuss business operation tips, learn insurance industry news, stay updated on regulatory or legal issues, post career opportunities, recruit new talent, etc. These are just a few examples. As you explore each channel, take a look at what others are doing. What you’ll notice is that businesses who post fluff consisting of silly jokes or totally unrelated material will get very little engagement and interaction, and their audiences won’t grow. Businesses that share relevant material on a regular basis will see far more interaction and engagement from their audience, and the audience will grow. The key is to provide content that comes from your business and matters to your community. CRM Jonathan Barrick is the Marketing Manager for Global Finishing Solutions, and a strong proponet of social media for business. He can be reached at 705-719-4014 or via email to jbarrick@ globalfinishing.com.
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NEWYEAR’SWISHES What do you want to come true?
By Tom Bissonnette
realize that by the time you read this article we will be well into the New Year but better late than never. In early January 2012 I asked a good cross section of the collision industry stakeholders this question: “If you could have any one wish come true for the collision industry, what would it be?” Here is what they told me. • My wish is for auto body rates to be equal to mechanical rates. • If I had one wish it would be that everyone in the industry (and I mean everyone!) magically became unable to see the faults in what everyone else is doing and only worried about how they could be the “best me I can be.” I would like to see our insurance partners recognize collision repair facilities for their performance and reward them accordingly.
Paid for Work
• I would like to see the day when, if we do an operation on a vehicle, including detailing it when we are finished, that we would get paid for it. • I have seen the industry change to a great degree from small shop owners selling out to large body shop chains that are selling themselves out to the insurance companies – I wish these large chains would have the courage to stand up and tell the insurance companies “NO!” once in a while. • I would like the insurance companies to consider very carefully how their demands affect the workers on the shop floor. • I would like to engage in real, honest, thought provoking conversation with our insurance companies about progressive, time saving, common-sense procedures that benefit our mutual customer, ourselves and the insurance company. • I have one wish and one wish only. I believe that if this one issue was corrected in our industry, we would have no other problems. It would alleviate attracting new people, retaining our already great people, advertising issues, training, business sustainability, profitability, etc. My wish is being paid at a proper rate per hour.
• It would be great if the entire collision repair
48 collision Repair collisionrepairmag.com
industry would become a recognized trade, requiring members to meet minimum standards to be able to be industry and insurance accredited. • My wish for 2012 would be that the auto body repair industry becomes more professional instead of sacrificing profits for the sake of market share.
• I feel that the insurance companies spend a dollar to save a penny. Sometimes they are looking to save money in the wrong places. They lack communication with us and don’t give us the time to hear our ideas. We can almost guarantee that our suggestions will save them money and time. Translation: I wish the insurance companies would communicate with us more. • My wish is that insurers could stop using independent appraisers and start relying on the shops to write estimates. There would be a huge drop in supplements and the shops would be working off an accurate sheet and improve their cycle time. • Some of my wishes would be: Create more awareness of the collision industry through youth programs, schools, and online; better quality aftermarket parts; and a CCIF golf tournament/fundraiser.
My Own Wishes
As far as my own wish for the industry it would be two-fold: 1. That the Mitchell and ADP data bases become recognized as the foundation of non-negotiable items that should appear on all sheets in the spirit of fairness and professionalism. 2. The industry stakeholders (insurance, suppliers and repairers) open their eyes to the fact that we may soon all be out of business because of accident-avoidance technology. We need to start thinking about what else we can do to sustain ourselves in a shrinking marketplace. After reviewing all the replies that I received asking for New Year’s wishes it became apparent to me that not even one insurance company person replied to my request! Is it possible that all their wishes have already been fulfilled? Or is it just
confirmation of the disconnect between insurers and the rest of the industry? The tough part is that if things keep going the way they have been, I am not sure that there will be enough collision repair shops left to service the needs of the motoring public – even with a major reduction in collisions.
a healthy state of communication: • Both sides will require more flexibility and compromise. • Stop the blame game and finger pointing. Start taking some responsibility for your part in the conflict. • Quit bringing up the past.
Insurers could stop using independent appraisers and START relying on the shops to write estimates. My New Year’s wish then is that the communication breakdown between repairers and insurers would be mended. How can this be done? Point your finger to the ceiling. Turn it clockwise. Slowly, bring your hand down to your chest. Why is it turning counterclockwise now? I guess it all depends on your point of view. We need to look at our relationship with each other from the other person’s perspective. I looked up a website on “communication breakdown” and here is what it suggested to get back to
• Attack problems, not people. • Speak softly with honest balanced words. • Listen more and speak less. Wow! What would our industry look like if we can make this happen? CRM
Tom Bissonnette is the owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, SK. He can be reached at firstname.lastname@example.org.
What does this polar bear have in common with the Switch Out program? Since the program began in 2001, Switch Out has recovered and properly managed over half a million mercury switches. That’s equivalent to 440 kilograms of mercury, or the weight of an adult male polar bear! Be sure to do your part to collect even more mercury switches in 2012. In addition to meeting the requirements of the Zero Mercury scrap purchasing policy, you’ll be helping keep the environment mercury-free. A big thank you to each recycler that participated in our April collection sweep! These businesses have demonstrated their commitment to mercury-free scrap and have been added to the list of active program participants on the Switch Out website.
To register for Switch Out or to view the list of active participants, please visit www.switchout.ca or call 416.922.2448 x286 for more information.
A program of:
may 2012 collision Repair 49
Goff’s Enterprises has introduced Sound Curtains, an all new, custom made noise control curtain and screen option designed to dramatically reduce harmful industrial strength noises. The unique ability to fan fold and collapse out of the way allows the user the flexibility to enclose an area during loud noise processes and open the space back up after the task is complete. Goff’s says the Sound Curtains can reduce noise by up to 45dB with a typical STC of 26 within the coverage area. Panels are constructed with a viscoelastic acoustic damper. Outer 18oz
product line is designed to create flexibility in the work place. Permanent walls can
DV Systems has announced the introduction of a new line of air tools. The DV Air Tools line includes the Heavy-Duty T1000 Air Impact, T2000 Mini Air Ratchet, T2010 Air Ratchet and T2020 Air Ratchet wrenches, the T3000 Die Grinder and T3030 Mini
vinyl material is water, mildew, and rot resistant and is available in 9 color options. Panels can be hung from sliding style hardware or attached to a portable, heavy duty extruded aluminum frame. “Goff’s Sound Curtains were designed with the end user in mind. Our entire
greatly limit production and growth,” said Tony Goff, President of Goff’s Enterprises. “With the fan fold design, controlling sound doesn’t have to control work flow and plant layout.” For more information, please call 800234-0337 or visit goffscurtainwalls.com.
Angle Grinder, and the T4000 Orbital Air Sander with Vacuum. DV Air Tools are rugged and reliable, made of lightweight composite material and featuring ergonomic design. The company says that DV Air Tools give you the power, control and comfort that make the job more fun. For more information, please visit dvsystems.ca/air-tools.
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LY D! L FU KE O O B ALEESHEN KISTEN, SAMBRA
IBIS is the global forum for collision repair. More than 300 senior managers and executives annually attend from over 30 different countries to discuss issues, exchange ideas and share information. Be a part of this unique event and bring the industry together. For more details or to book your place, contact the IBIS Team on: +44 (0)1296 642826 or email: email@example.com
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50 ibiscollision Repair collisionrepairmag.com 12 half h world.indd 1
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Barrett-Jackson Signature Car Care is a complete line of products for the care of vehicle paint finish. The Barrett-Jackson Signature Car Care line came to fruition after a three year program of intensive development in which Barrett-Jackson worked closely with Farécla. The company says this breakthrough line is a systematic approach to collector car preparation, and includes a fourstep process with a unique product designed for each step to achieve a perfect paint renovation. The professional formulas by Farécla have been engineered at a molecular level, in conjunction with the paint companies, to make using them safe, effective and suitable for
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Gold has extra strong aluminium oxide grains in P80-P800, which the company says gives an excellent cut. Optimized grain distribution along with a combination of calcium or zinc base stearate allows the product to perform faster and gives less clogging. The improved backing paper gives more even coating of grains and resin. Mirka says its Bulldog Gold abrasive is very well suited for high speed sanding in a multitude of applications. The upgraded Gold is launched in renewed packaging with a new yellow label. For more info, please visit mirka.com.
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may 2012 collision Repair 51
ASRW is the industry’s leading resource for comprehensive knowledge, networking & trends. With something for everyone, it’s the only place where automotive service & repair professionals will find everything they need to accomplish their business goals for the next year: 200+ hours of education, opportunities to meet with the brightest minds and a wide array of products/ services – all while enjoying life in the Big Easy. We provide the resources. You decide where they will take you in the next year.
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We go inside the warehouse for the scoop on suppliers.
here’s no question that jobbers fill a vital role in the collision repair industry. As wholesalers, they often serve as a collision repair facility’s first point of contact for any equipment purchase, from consumables like paint, abrasives and adhesives all the way to refinish and structural repair equipment. The world of the jobber is not a secretive one. In fact, they’re usually quite happy to share details of their business with fellow professionals in the collision repair business. However, there really hasn’t been a place for their stories to be told. Until now. Starting in this issue, we’re introducing “Meet Your Jobber,” a feature that will take
you inside their world, and show you how they’re taking steps to help you improve your business. We’ll be visiting with jobbers big and small, and giving you the inside scoop on what they’ve got planned to help you run your business better, faster and stronger than ever before. These professionals have the inside scoop on the latest products and supplies for your collision repair facility. We’re taking an in-depth look at how your jobber can use their specialized, insider’s knowledge to help you make the right decisions and build your business in a progressive manner. Turn the page and take a step into the warehouse. You won’t regret it.
By Mike Davey
Meet Your Jobber
COM I N GS OO
G SOON MIN CO
C OM IN G ON SO
OON GS IN M O
Treschak Enterprises Ltd. ...54 871 Niagara St, Unit 3 Welland, ON L3C 6Y1 t: 905-732-3803 f: 905-732-1395 e: firstname.lastname@example.org www.treschak.biz Crescent Industries Ltd. ....55 1400 Bonhill Rd Mississauga, ON L5T 1L3 t: 905-364-5093 e: email@example.com www.crescentindustries.ca Rondex...............................56 t: 1-877-766-3392 e: firstname.lastname@example.org www.rondex.ca Rondex Manitoba 177 Isabel St Winnipeg, MB R3A 1G8 t: 204-943-4531 f: 204-942-0631 Rondex Ontario 237 Barton E, Unit 101 Stoney Creek, ON L8E 2K4 t: 905-662-3973 f: 905-662-7130 Rondex Vancouver Island 3043 Barons Rd Nanaimo, BC V9T 3Y6 t: 250-758-2416 f: 250-758-2417 Rondex British Columbia 676 Alpha St Victoria, BC V8Z 1B5 t: 250-590-7142 f: 250-590-7143
may 2012 collision Repair 53
Meet Your Jobbers
Don and Jamie Treschak in front of their store in Welland.
The Welland Jobber is developing a Process Centered Environment to serve you better. www.treschak.biz 905-732-3803 Commissions on sales are a very common way of tying compensation to performance. But is someone really doing their best for the customer just by selling them a lot of paint or abrasives? Don Treschak doesn’t think so. Treschak is the President of Treschak Enterprises, located in Welland, Ontario. The business has been serving the Niagara, Hamilton-Wentworth, Burlington, Norfolk, and Brantford regions for over 30 years. “Every salesperson is not on commission,” says Treschak. “We’re not interested in selling things people don’t need. We can do monthly inventories for customers. That helps them to maintain a skinny inventory and keeps their costs low.” Treschak Enterprises entered its second generation when Don’s son, Jamie, joined the business. He has insight into how jobbers can compete with the big box stores. “They offer good discounts, no question about it,” says Jamie. “But we can offer discounts too, and they simply can’t match our customer service.” Jamie says the goal is to have the quality of products surpassed only by the quality of customer service. It wouldn’t be unfair to say that Treschak Enterprises started life the same way a lot of progressive collision repair facilities did: as a “Mom-and-Pop” operation. However, that’s changing. Today, Treschak Enterprises is keeping the very best of that Mom-and-Pop feel, but modernizing to suit the modern climate. “It used to be that everybody did everything. Now we’re getting specialized for special functions. Part of the ‘Mom-
and-Pop’ feel that we’re keeping is that everyone will be cross-trained. You may call one of our specialists with a problem, but if he’s not in, someone will still be able to help you,” says Jamie. As Operations Manager of Treschak Enterprises, other staff call him “the funnel.” “I’ll take all the information from sales staff and customers calling in and distribute it to the person best equipped to
If you want to go lean, you can lean on us.” - Jamie Treschak
deal with it, so they’re only dealing with one person at a time,” says Jamie. Having a single point of contact helps maintain the personalized service that collision repair professionals have come to expect from Treschak Enterprises. As a distributor for AkzoNobel, Treschak Enterprises has had to put in place a Process Centered Environment. They’re going through a process very similar to what many shops go through when making the move to lean. “If you want to go lean, you can lean on us,” says Jamie. “We’ve had to do it in the store, so we know what you’re going through. Everything here has its specific place and bin location, and we’ve started barcoding everything.”
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Having a jobber that knows what you’re going through is priceless, but that’s not the only way Treschak Enterprises is improving to serve you better. “By the end of 2013, we should have our web ordering system in place. Both customers and sales people can log on and order online. The website will have everything built into it,” says Jamie. “We’re also improving the back end of our inventory
management system.” New technology opens up new ways of doing business, but what makes Treschak Enterprises exceptional hasn’t changed. “We really do enjoy solving problems for our customers,” says Jamie. “It’s rewarding to know that if they’re stuck on something, we can help.” Part of that help comes from talking to others in the same business. Like many shops, Treschak Enterprises is part of a “20” group. “I’ve got a lot of respect for my father, and I can learn a lot from him,” says Jamie. “When I sit down with the 20 group, though, it’s like learning from 20 of my fathers.” For more information on Treschak Enterprises, please visit treschak.biz. CRM
Meet Meet Your Your Jobbers Jobbers
Zubair Siddiqui of Crescent Industries.
The company started with one man, one product and a vision. www.crescentindustries.ca 905-364-5093 Lots of people in the industry already know Crescent Industries and its President, Zubair Siddiqui, better known simply as Zuby. For over 26 years, Crescent Industries has been serving the professional collision repair community across southern Ontario. From its home base at 1400 Bonhill Rd. in Mississauga, Crescent Industries fleet of delivery trucks keep repair facilities stocked with BASF paint, body and equipment supplies. Stored in its 30,000 sq. ft. warehouse, Crescent Industries has just about everything a progressive collision repair facility could possibly need. Those are the things that everybody knows about Crescent Industries. What you might not know are the humble beginnings of this multi-million dollar company. Turn the clock back to May of 1986, and the warehouse disappears, the well-informed and trained staff disappear and the fleet of trucks is nowhere to be seen. What you would find is just one man, Zuby Siddiqui, and one product, an isocyanate hardener. “I was in the shoe and leather manufacturing business, but I wanted to get out of it,” says Siddiqui. “I met a guy from the U.S., and he showed me an isocyanate hardener that we could sell at half the price the big paint companies would.” As a former leather manufacturer, Siddiqui knew just what to do: start wearing out shoe leather. He called on numerous shops, and soon made some sales. The business grew from there. In Siddiqui’s own words, “I made some money, so I stuck with it.”
Today Crescent Industries has 16 employees serving customers as far away as London, Ontario. That’s a four-hour round trip, which means every delivery has to well planned in advance. Why do these long distance customers keep coming back to Crescent Industries for their PBE needs? “Competitive pricing, that’s why! And the quality of the products that we carry,” says Siddiqui. “Our goal is to provide the
for all price ranges, but if we’re selling a ‘budget’ product, then we make it a practice to let the customer know exactly what they’re getting, and even at the low-end, they’re still getting the best product that can be found in that price range.” Crescent Industries remains strongly focused on its customers in the collision repair business, but its President has diversified his interests.
Crescent Industries remains strongly focused on its customers in the collision repair business. highest standard of products at very reasonable prices.” With brands such as BASF R-M, 3M, Medallion, DeVilbiss, SEM and U-Pol on the list, there’s no question that Crescent Industries carries high-quality products. Great prices and high standards in products are partly responsible, but there’s no denying that customer service and personal relationships also play a role in the success of Crescent Industries. Staff are ready, willing and able to answer questions and render support to their customers. No matter the product, Crescent Industries stands behind it 100 percent. “We can say that because we only carry products that are known to be high in quality,” says Siddiqui. “We carry products
“I got into producing movies recently. It’s a low-budget Holly wo o d movie called ‘Jinn.’ It’s a supernatural thriller,” says Siddiqui. It’s important to remember in these days of blockbuster movies with budgets the size of a small country’s GDP that low-budget doesn’t mean low-quality. The trailer for the movie can be seen at jinnthemovie. com, and it’s clearly a high-quality production, with excellent acting, direction and production values. It’s simply been produced for a lower price than a lot of the sludge that Hollywood pumps out. Hmm … a combination of low prices and high standards? No wonder Zuby Siddiqui is involved. It’s the same model as Crescent Industries! CRM may 2012 collision Repair 55
Meet Your Jobbers
Passion, Integrity and Know-How They’re what keeps Rondex growing across Canada.
The third and second generations of Greenwoods.
www.rondex.ca 1-877-766-3392 Rondex has come a long way since Ted Greenwood started the business in 1972 with the assistance of his sons Ron and Dexter. The business has grown from its first location in Winnipeg to additional stores in Hamilton, Nanaimo and Victoria. If they’re not serving your area yet, don’t worry. More expansions are planned. Lindsey Kozak is the Director of Sales for Rondex. He says that part of the company’s strength is that it’s a family business, and that family has big ideas. “They’re very ambitious,” says Kozak. “It’s a company that’s not afraid to try new things.” That willingness to go beyond what’s currently being offered has lead to some important firsts for Rondex. They were the first jobbers to computerize in Winnipeg, the first to offer in-house repair for air tools and compressors and among the first to hold trade shows and product information seminars for their customers. Rondex also deserves credit for taking the business of supplying collision repair facilities out of the back alleys and into the light, setting up storefronts that essentially said “We serve collision repairers, and we’re proud to do it.” “We’re continuing to look at new technology today. I don’t want to give the game away by getting into specifics, but I can say that any new technology we adopt will be about helping our customers do business better, faster and cheaper,” says Kozak. Rondex is currently examining ways in which the company can further minimize any errors.
“The more times information changes hands, the more chances there are for errors to creep in,” says Kozak. “This isn’t a new problem, of course, but Rondex is examining new ways to eliminate it.” Eliminating “error creep” would be of benefit both to Rondex and its customers. But that’s in the future, although it’s likely not too far off. What’s Rondex offering today? “We provide the utmost ser vice to
Rondex is now into its third generation, with Bret and Everett Greenwood taking management positions within the company. The grandsons of the founder, Bret and Everett, have every intention of carrying on family tradition of customer ser vice and specialized knowledge. Those are great, but the family traditions go beyond that. “A lot of people at Rondex have stories about Ted Greenwood,” says Kozak. “He
Rondex deserves credit for taking the business of supplying collision facilities out of the back alleys.
our customers, whether it’s last minute shipments or just making the ordering experience as convenient as possible,” says Kozak. “We make sure that we’re familiar not just with our products, but with our customers. That includes the inside sales staff. Our counter sales people have very strong rapport with our walk-in customers. It’s a personal experience.” Rondex also offers something that’s rare in any business: passion. “We’ve got a lot of experienced staff, and a lot of passionate staff. These guys combine their experience with their passion. We try to sniff out quality employees at trade shows and through referrals,” says Kozak.
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was the sort of guy who would do anything for staff and customers. He had an employee who got injured and couldn’t come to work. This was in the days before short-term disability. Ted would stop by his house every week and drop off cash, just to make sure his family was looked after.” It’s that practice of going the extra mile that has got Rondex to where it is today. The company celebrates its 40th anniversary this year, and Rondex plans to celebrate in various ways with its customers and staff at all of its branches, acknowledging the contributions of each. No doubt Ted Greenwood would approve. CRM
Contents Recycling News..........57-63 Association conferences, the DreamLift and much more. Recycling column.....64-65 Management Guy by David Gold
Leadership, sales and social media at 2012 OARA Convention By Mike Davey
The leadership shown by progressive automotive recyclers is precisely what is needed from business as the province of Ontario transitions to a greener economy. That was one of the messages delivered by Dr. Helena Jaczek, Parliamentary Assistant to the Minister of the Environment during her presentation at the Ontario Automotive Recyclers Association Convention and Trade Show. The OARA Convention took place March 30 and 31 at the Toronto Airport Marriott. Dr. Jaczek acknowledged that not only do automotive recyclers provide an environmental benefit, there are economic benefits to society as well. “We know that efforts to increase the recovery and recycling of materials creates jobs. One job is created for every 1000 tons of waste diverted,” said Dr. Jaczkek. Over 2 million tons of waste are diverted every year in Ontario alone. Executive Director Steve Fletcher opened the convention with a short recap of the past year, with a focus on the first-ever ELV forum that took place in late 2011, and the work the association has done in reaching out to collision repair professionals and insurers. Janet Taylor of Summerhill Impact updated the membership regarding the Switch Out program, through which Canada’s auto recyclers have prevented the discharge of mercury into the environment. Participation in the Switch Out program is a condition of membership in the Auto Recyclers of Canada and its provincial recycling associations. Nigel Dove of Vortex Depollution and the Complete Auto Recycling Show spoke on the Rian Garner of Counts Consulting gave two presentations at OARA’s 2012 Convention.
Continued on page 58.
recycler receives Medal of Bravery for helping cop take down killer
Kevin Thomas and Governor General David Johnston at the presentation of the Medal of Bravery at Rideau Hall in Ottawa.
It isn’t every day you help a police officer take down a dangerous killer. For most of us there are no days like that at all. But when Kevin Thomas of Dom’s Auto Parts was needed, he didn’t hesitate. Thomas was recently awarded the Governor General’s Medal of Bravery for assisting a Durham Regional Police officer at the scene of a triple homicide in Oshawa, Ontario in November 2008. When Constable Scott Dargie responded to a 911 call at the home of Richard and Leslie Kelly, he arrived to find Mr. Kelly gravely wounded outside the home. Inside, a deranged man named Gino Petralia had just murdered Leslie Kelly and attacked the couple’s young sons. Richard Kelly and his son Nathan later died from their injuries. Petralia emerged from the home holding a hammer and wearing a knife at his hip. Const. Dargie ordered him to surrender, but Petralia ignored him and entered another unit. The officer shot him as he was about to attack the men inside. The Continued on page 60.
may 2012 collision Repair 57
OARA Convention 2012 ... continued from page 57
2012 International Roundtable on Auto Recycling which will take place in Liverpool, U.K. This event takes place every two years, gathering together key auto recycling thought leaders from around the world. Watch the next issue of Canadian Auto Recyclers magazine for a complete report on this exciting international event. Giving back to the community has been a major theme for professional automotive recyclers in the last few years. One presenter, Andrew Murie, CEO of MADD Canada, addressed the membership on MADD’s Campaign 911. This national campaign encourages citizens to report erratic driving to police. Canada’s recyclers have come out very strongly in favour of this program. The morning session ended with How To Get The Most From Your Sales Staff delivered by Rian Garner of Counts Consulting. Garner’s Janet Taylor of Summerhill Impact.
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presentation gave attendees numerous tips on how to improve skills and make sure customers are served with complete satisfaction. The opening of the OARA trade show followed. Featuring nearly 40 exhibitors, it is the largest automotive recycling trade show in Canada. The afternoon session included an update on OTS - OARA Tire Takeback Days, presented by Susanne Robins of Ontario Tire Stewardship and Lisa Mills of Environics Communications. It was also announced that ARC has received the Best Community Relations/Outreach Program from the Canadian Public Relations Society for its work on promoting Tire Take Back Days and Ontario Tire Stewardship. Social Media Strategist Melissa Cheater, and John Couper of Couper Marketing Solutions teamed up to inform recyclers on New Media, New Methods: Auto Recyclers and Social Media. Managing a professional social presence offers new challenges, but also new opportunities. This theme was reinforced by Jeff Schroder of Car-Part. com during his presentation on selling to the collision repair market. “The bar is being raised all the time for customer service,” said Schroder. “When someone likes what you’re doing, it gets amplified on the internet, and when someone doesn’t like what you’re doing, that gets amplified on the internet too.” Schroder’s presentation spoke directly to a primary concern for many automotive recyclers, how to better serve their professional customers in the collision repair business. “They’re running an assembly line, and the parts we sell them are feeding into that assembly line. It’s really important that what we offer is not cycle time vs. recycled parts. It’s cycle time plus recycled parts,” said Schroder, and detailed a number of prime concerns for collision repairers: on-time delivery, quality parts, pricing and parts Donald warrantees. Cooper was The trade show attracted a lot the keynote speaker for of traffic after the day’s presentaday two of tions. The official reception was the OARA followed by a Charity Casino with Convention. Silent and Live Auctions, with proceeds going to the OARA Scholarship Program. The second day of the 2012 OARA Convention kicked with a Breakfast with Donald Cooper. A motivational speaker and the former CEO of Cooper Canada, Cooper also got the attendees talking later that day with his presentation on 8 Essential Steps to Finding, Leading and Attracting a Top-Performing Team. Highlights from the second day included The Role of the Internet in Selling Parts, presented by eBay Motors, New and Innovative Products from Hollander by Laurie Woods and Nancy Randall of Hollander, the advantages of using Car-Part Pro in selling to the professional market by Roger Schroder of Car-Part.com and Don’t Short Yourself On Vehicle Purchasing by Rian Garner of Counts Consulting. For more information on OARA, please visit oara.com.
Recyclers Ready for DreamLift The Sunshine Foundation is the only national Canadian charity to provide individual dreams to children with severe physical disabilities as well as life-threatening illnesses. For the last few years, they’ve had a very special partner in this mission: Canada’s automotive recyclers. One of the Sunshine Foundation’s most prominent events is the DreamLift, a one-day adventure that transports approximately 80 kids to a destination such as a Disney theme park. For 2012, the DreamLift is being sponsored by OARA in partnership with ARC. One of the most interesting features of the Dreamlift is the people who aren’t invited to come along: Mom and Dad. Instead, each child has a companion that accompanies them. The following members of the auto recycling industry will be on the Dreamlift as companions: Steve Fletcher, Automotive Recyclers of Canada Ed MacDonald, Maritime Auto Salvage Mary Poirier, Valley Automotive Tom Huehn, 400 Auto Wreckers Carolyn Carcone, Carcone’s Auto Recycling Cathy Ferrell, Modern Auto Parts Jennifer Cormack, Sonshine Auto Parts
Carl Pesant, Ontario Auto Recyclers Association Gloria Mann, Canadian Auto Recyclers magazine Tom Huehn of 400 Auto Wreckers knew that he had to become involved with the Dreamlift, pretty much from the second he heard about it. “I’ve been very fortunate to have a healthy family and healthy kids with no major crises,” says Huehn. “You see these kids working so hard to stay active and, if you’ve got any heart at all, you can’t help but want to take part. It’s a huge responsibility to spend the day with these children. Your primary concern has to be with making sure that the child has the best time possible and that means you can’t slow down. These kids have a hard hill to climb, and I’m happy I can help them a little bit along the way.” Ed MacDonald of Maritime Auto Salvage will also be volunteering as a companion. “I thought it was a great idea from the start,” MacDonald says, “and the business was keen on it, but I personally love to help out as much as possible.” MacDonald also believes that “it’s really important to share and to give to the community.” For more information on the Sunshine Foundation, visit sunshine.ca.
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Auto Recycler Receives Medal ...c ontinued from page 57
shot wounded Petralia, but did not put him down. Const. Dargie began wrestling with Petralia, but was having a difficult time getting him under control. As fate would have it, Kevin Thomas lived nearby and was heading out for dinner at the time with his family. He quickly rushed to the officer’s aid. “I asked if he needed help and he said ‘Yes’,” says Thomas. “I really had no idea of the magnitude of the situation until later.” Thomas and Const. Dargie received the Governor General’s Medal of Bravery for actions taken that night. Richard Kelly was given the medal posthumously for his actions in trying to save his family. His sons Brandon and Riley attended the ceremony and accepted the award on behalf of their father. “I’m honoured,” says Thomas. “But I still don’t think I did anything. I just stepped up to help an officer.” Const. Dargie disagrees, and has gone on record saying he was in “big trouble” before Thomas came to his aid. Oddly enough, Const. Dargie and Kevin Thomas didn’t formally meet until an inquest into Petralia’s death. “I got to thank him for what he did that day,” said Thomas. “Had he not answered when he did, my family might have been next.”
Carcone’s Auto Recycling launches bumper refinishing division
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Carcone’s Auto Recycling has been in the auto parts and auto recycling business since 1978, and the company was a pioneer in the field of wheel refinishing. Owner Michael Carcone took a chance when he invested in wheel refinishing. Celebrating its 17th anniversary in April 2012, there’s no question that it was a wise investment. Carcone’s has seen fit to branch out again, this time into the bumper business. Just as when it entered into the wheel refinishing business, the company needed a solution that would help provide a better quality product for its customers. “The bumpers are one of our top ten parts sold from our inventory and therefore it is an obvious fit for our vision and focus,” says Michael Carcone. “We have asked, listened and heard our customers on what they want and expect from this venture. It is our mandate to elevate the standards on bumpers purchased from our facility. We just want to be able to offer a quality product to our customers.” Carcone explains that his reason for wanting to bring his company into this field was because, “Bumpers are usually damaged or of substandard qualities on the used cars we get, so our aim is to repair, refinish and sell the stock of bumpers that we get in to our customers’ satisfaction.” David Woollings refinishes a bumper at For more information, please Carcone’s Auto Recycling new division. visit carcone.com.
MADD Canada and AARDA bring anti-impaired driving film to Alberta schools MADD Canada will bring its anti-impaired driving message to more students in Alberta this year, thanks to the generous sponsorship of the Alberta Automotive Recyclers and Dismantlers Association (AARDA). The 2011-2012 School Assembly Program shows students the dangers of impaired driving and gets them thinking about how to avoid putting themselves at risk. AARDA is sponsoring 16 presentations at schools throughout Alberta, including a special screening for students and media today at Blessed John XXIII School in Calgary. “We are thrilled to have AARDA as one of our newest School Assembly Program sponsors,” said Denise Dubyk, MADD Canada’s National President. “With their generous contribution, our important message about the risks of impaired driving will be heard by thousands more students in Alberta, at no charge to the schools.” This year’s program, Damages, takes students beyond the crash to see the human impact and legal consequences of impaired driving. Ian Hope, Executive Director of AARDA presents AARDA’s contribution of $16,000 to MADD’s National President, Denise Dubyk. The funds will be used by MADD to make presentations at 16 schools across Alberta about the dangers of drinking and driving. The first
presentation of MADD’s film entitled “Damages” was shown on March 2, 2012 at Blessed John XXIII Junior High School in Calgary. “In our industry, we often see the wreckage of vehicles that have been involved in impaired driving crashes,” said Ian Hope, Executive Director of AARDA. Ian Hope, Executive Director “We are pleased to be part of of AARDA, presents AARDA’s this effort to educate students contribution of $16,000 to MADD’s National President, Denise Dubyk. and reduce their risks of being involved in crashes.” AARDA is a member of the Automobile Recyclers of Canada (ARC) which MADD Canada is proud to announce as the Title Sponsor of itsCampaign 911 program. ARC presented a $100,000 donation to the program at MADD Canada’s Leadership Conference in late September. For more information on MADD Canada, please visit madd.ca.
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managementguy Donald Cooper is inspirational and passionate. By David Gold
ollision repairers and automotive recyclers have a lot in common. Our industries by nature are labour intensive and can be hard on our nerves. Every once in a while someone or something comes along and brightens our day with a perspective on the business that gives us renewed hope and energy to carry on. For auto recyclers that day came on March 31, 2012 when Donald Cooper spoke as an “industry insider” during breakfast at our annual OARA meeting. We were told point blank, “If you don’t love what you do, move on.” Donald Cooper tells us much of what we already know, “Mediocrity is no longer an option,” as the business climate is getting tougher and tougher and competitors are getting better and smarter all of the time. This fierce competitive culture in which we conduct business today is very different from years ago. Small and medium businesses must evolve in order to survive.
64 collision Repair collisionrepairmag.com
Listening to a motivational speaker is fantastic and we all appreciate the lessons learned and feel so much better about our individual situations for the day. Having listened to Cooper these past few years, I see a more profound chord being struck with those in the audience. There is a connection unlike any speaker or management guru that has ever spoken to our group. The attendees were engaged, participated and most importantly they realized that there is light at the end of the tunnel and that business, while tough, shouldn’t be a drain on our spirit but rather business should be “extraordinary.” It’s hard to imagine a group of auto recyclers at a breakfast meeting acknowledging that our business has to be extraordinary and that we have to be inspired and passionate – or we shouldn’t be in the business. But as I stood at the back of the packed room, it was clear that Cooper’s message was being received loud and clear. Cooper speaks about the “tiny minds and tiny hearts” of those competitors that think in old and
recycling i outdated ways. In an effort for us all to not fall into this trap we are encouraged to make policies from a customer’s point of view. “People buy with their hearts and their minds,” Cooper says. The group was told to not only be extraordinary in business but to also be extraordinary in life. “Be alive, do something different, keep promises – make this the year of keeping promises,” was one of the messages that Cooper gave us.
Grandma” is perfectly aligned to our collective industry. It is too easy for us to be complacent. It is more important than ever for us to take heed and accept the challenge to be better. Too often business people don’t think things through thoroughly. Cooper says of his own practices that were successful “we just thought it through – just felt it through, and then we had the passion, creativity and courage to be extraordinary.”
So how do we get everyone marching in the same direction? So how do we turn around our businesses and get everyone marching in the same direction? “We need to get everyone in our company singing from the same hymn sheet” Donald says. Business managers and owners all know this and it is refreshing to hear that it is our responsibility to incorporate this into the company. For a company to realize its full potential, all representatives in the organization have to know what the clear vision is. Cooper’s down to earth and humorous approach along with some “wisdom passed down from
We have to do what’s right in business. Do what is best for our employees and customers alike. By being honest with ourselves in addition to being disciplined and passionate, we will win over their hearts. Just as Donald has won over ours. CRM David Gold is the co-owner of Standard Auto Wreckers, an auto recycling facility with locations in Toronto, Ontario and Niagara Falls, New York. He can be reached by telephone at 416-286-8686 or via e-mail at firstname.lastname@example.org.
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GotAminute? Sorry, but we need to talk. By Mike Davey
t’s been awhile since we talked, which is a shame because we’ve got a bit of a problem. The problem is that we don’t talk enough. Seriously. I know it, your friends and family know it, but you might not know it. That’s why I’ve taken it upon myself to talk you today. This conversation has been a long time coming. This is kind of difficult to talk about, but I’ve talked it over with the people who love you, and we all feel that it’s a message you need to hear. Dancing around the issue isn’t going to make it any easier, so I’m going to just come right out and say it. You need to get your butt online, and pronto.
we’re usually on track. The feedback we get is overwhlemingly positive, and we listen very carefully when it’s negative. With that said, a strong print publication simply isn’t good enough. Business moves very fast today, and finding a dependable daily news source should be priority number one for anyone who wants to stay in business. If you’re not on our website fairly frequently, you’re missing out. If you’re not a subscriber to our weekly ezine, then you’re missing out. The print magazine is great, but if that’s all you’re reading, then you are falling behind your competitors. That may
if you’re not on our website fairly frequently, you’re missing out. If not for youself, then you need to do it for your staff and your business. The fact of the matter is that the net stopped being a kids’ toy a long time ago. It is, without question, the single most important information resource available to collision repair professionals today. I’m not talking about building a website for your business. You’ve probably already got one of those. Nor am I talking about signing up for Facebook or Twitter. Don’t get me wrong, those need to be done if you haven’t yet. They’re essentially the price of admission. No, the real issue isn’t with what your business is putting out in terms of web presence. The problem is what you personally are taking in, or rather, not taking in. Look, I’ll put this magazine up against any other comparable publication any day of the week. I think we do a good job of bringing you the features and news you need to better your business and our industry. We’re always striving to improve and go further, and that’s one of the reasons that we can do as good a job as we do. The input we get from readers shows that
sound harsh, but it’s the truth. There are quite a few stories that may be very important to you and your business, but never make it into the magazine. I suspect there are at least a couple of people out there right now thinking “But if it’s important, it will be in the magazine, won’t it?” Yes, it will, if it’s a national story or if it’s got a long enough time frame. There are lots of stories that are extremely important but don’t fit this mold. I’m tight on space, so I’ll close with just one example. I often get announcements about free training. I post these on our website and list them in the ezine. They don’t make it into print because it’s over by the time the magazine hits your mailbox Read us on the web and in print and catch it, or just read us in print and never even hear about it. It’s really that simple. Shoot me an email or call me and I’ll make sure you’re in the loop. CRM
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Mike Davey is the editor of Collision Repair magazine. He can be reached at 905370-0101 or via email at email@example.com.
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