Inside Scoop: Boyd Buys Assured! Exclusive InterviewS inside!
The Scanning Dilemma
OEMs say always scan, but will insurers pay?
The place to be at NACE Automechanika!
Build your business on a strong foundation!
Success Nick and Sandy Liguori of Woodchester Collision reached the top by forging personal connections.
Sean Carey of SCG Consultants on connected cars, tips on plastic repair, WIN Conference report and much, much more! Volume 16, Number 3 l June 2017
Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 â€‚ lâ€‚ 86 John Street, Thornhill, ON L3T 1Y2
ON THE COVER 23 PERSONAL CONNECTION Sandy and Nick Liguori are fiercely committed to forging relationships.
Volume 16, Issue 3, June 2017
features 26 BOYD BUYS ASSURED! Get the inside scoop with interviews of CEOs from both companies! 39 Plastic repair There are major benefits that come with doing plastic repairs.
47 FIVE PILLARS OF SUCCESS Practices you can employ to ensure a strong shop foundation. A WIN Conference fundraising event provides scholarships for women.
65 tHE SCANNING GAP OEMs insist on scanning, but some insurers may not be onboard. 69 CONNECTED CARS A completely connected claims process may be just a few years away.
NEWS 8 COLLISION REPAIR 85 Towing & Recovery 87 RECYCLING
Check out our complete report on CCIF Fredericton!
AV Report: To ensure a positive driverless future, we need to start planning now.
On the Cover: Nick and Sandy Liguori of Woodchester Auto Group. Photography by Mike Davey
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6 Publisher’s page by Darryl Simmons Power shift. 18 Who’s driving? by Jay Perry Bite-sized goals. 20 Prairie view by Chelsea Stebner Meeting magic. 55 training by Andrew Shepherd Muddy waters. 92 Recycling by David Gold Shop talk.
HAVE YOUR SAY. We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to firstname.lastname@example.org.
94 Industry Insight by Jeff Sanford Pay attention.
June 2017 collision Repair 5
POWERshIFT And the times, they are a changin’
PUBLISHER DARRYL SIMMONS (647) 409-7070 email@example.com
By Darryl Simmons
PUBLISHING DIRECTOR JAMES KERR (416) 628-8344 firstname.lastname@example.org
hese sure are interesting times in the collision repair industry. With the ever-increasing involvement of carmakers, the balance of power is slowly, but surely, shifting to the repair side. Insurers no longer have all the cards in their hands. OEMs, more than ever, are dictating the terms of engagement with regards to parts selection, training, equipment and repair procedures. And for progressive repairers such as yourself, opportunity is there to be had. It d i d n’t s e e m s o l ong a go w h e n several luxury brands launched their certified repair centres. Shops had to
but all should follow Economical Insurance who is not just paying for the process, but insisting it be done in certain situations. Congratulations to Joe Carvalho and his team for breaking this ground. In this edition you’ll get an in-depth discussion of this topic on page 65. Speaking of changes, we have several here at Collision Repair magazine as well. Joining our staff are three people bound to have an impact on your reading enjoyment. James Kerr, Publishing Director, will be heading up the team that consistently brings you informative and entertaining content. With Alex Dugas, our new French
EDITORIAL DIRECTOR MIKE DAVEY (905) 549-0454 email@example.com PUBLISHING ASSISTANT ERIN MCLAUGHLIN (905) 370-0101 firstname.lastname@example.org FRENCH EDITOR ALEXANDRE DUGAS (905) 370-0101 email@example.com CREATIVE DEPARTMENT MICHELLE MILLER (905) 370-0101 firstname.lastname@example.org ACCOUNT MANAGER PAT CAPPELLI (905) 370-0101 email@example.com STAFF WRITERS BARETT POLEY firstname.lastname@example.org Jeff Sanford email@example.com VP Industry Relations & Advertising GLORIA MANN (647) 998-5677 firstname.lastname@example.org
OEMs, MORE THAN Ever, Are dictating the terms of engagement. make huge investments in training and equipment, but the benefits were just as big. Commanding a totally-justified premium door rate, these facilities faced pushback from some insurers who balked at the price, claiming all repairs were basically the same. Untrue, for sure, but it happened all the time. However, with the premium OEM lobbying on their repair facilities’ behalf, insurers had to pay heed. After all, it’s tough to convince common customers the carmaker’s preferred repair shop is not the best place for repairs. Associating shops to brands didn’t just trickle down, it quickly flowed. In a few short years, we are now seeing certified repair facilities linked to major auto brands becoming the norm, not the exception. The repair procedures don’t just include parts and equipment, but the process is now a key factor in the product. The latest topic down this path is pre-and postscanning. Some insurers are still waffling,
Editor, and Erin McLaughlin, our new Publishing Assistant, these pages will be getting better than ever. By the way, I owe you a huge thank you. Recently, we were overwhelmingly chosen as the top industry magazine. More than 80 percent of readers selected us as the top choice in an independent research reader survey on magazines serving our industry. Thank you for your support and input. We would also like to thank all the advertisers who put their trust in us to deliver their message. As always, if you have comments or suggestions, please contact me directly. After all, it is your voice that gives us our voice. Thanks again.
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Managing Director iMM/Director Business Solutions & Marketing ellen Smith (416) 312-7446 email@example.com CONTRIBUTORS SEAN CAREY, David Gold, Dave Luehr, Jay Perry, Andrew Shepherd, Chelsea Stebner, Josh White SUBSCRIPTION One-year $39.95 / Two-year $64.99 Collision Repair™ magazine is published bi-monthly, and is dedicated to serving the business interests of the collision repair industry. It is published by Media Matters Inc. Material in Collision Repair™ magazine may not be reproduced in any form without written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 455 Gilmour St Peterborough, ON K9H 2J8
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Collision Repair magazine is published by Media Matters Inc., publishers of:
People on the move David Smith, Country Manager for Canada for AkzoNobel, is the new US East Market Regional Sales Leader, and will be in charge David Smith o f t h e c o m p a n y ’s Eastern US vehicle refinish operations.His responsibilities will include organizing a support infrastructure to execute sales processes that achieve organizational targets. “Dave has played an important role in strategically advancing our business,” says Doug Holmberg, North America Business Director, Vehicle Refinishes. “We are pleased to infuse someone with his level of industry knowledge and leadership experience into the East market at such a significant time.”
Carrossier ProColor has appointed Karine Finnegan to Communications and Customer Service Coordinator. In this new position, Karine Finnigen willl coordinate Finnigan all internal and external communications activities, as well as monitor customer service interventions and support the network’s collision centres. “The digital age brings many challenges for a company that wants to maintain its reputation among consumers,” says Mary Jayn de Villers, Director of Communications and Marketing for the Carrossier ProColor network. “The addition of Karine to our team will allow us to cope with this reality and ensure effective management.”
Caruk & Associates has announced the promotion of Ryan Beattie to Sales Manager in Ontario and the Maritimes. Prior to his promotion, Beattie Ryan Beattie. managed the Greater Toronto Area for Caruk & Associates and traveled extensively throughout Atlantic Canada. “Ryan has a solid background, leadership skills and tremendous dedication and commitment to our customers in these territories,” says Brian Caruk, President of Caruk & Associates.
PP G h a s a p p o i n t e d Melanie Rice to the position of National Business Development Manager for the company’s automotive refinish business in Canada. Melanie Rice. Rice will concentrate on developing opportunities and growing existing customer business among regional multi-shop consolidators and large bodyshop accounts. “In her former role, Melanie consistently did an excellent job in understanding client requirements and responding to them, ensuring customer satisfaction and success,” says Norm Angrove, Director of Refinish Canada, for PPG. “She will now have further opportunity to continue using her wealth of knowledge about the industry for the benefit of PPG customers.”
Repairify announced the appointment of Frank Terlep and Todd Balan to the offices of Chief Technology Officer and Senior Vice President of Frank Terlep. Corporate Development. Te r l e p h a s h e l d executive positions at A kzoNob el, Mitchel l International and C arstation.com. He is a past chairman of Todd Balan. the Collision Industry Electronic Commerce Association (CIECA) and has launched three successful startups, among other accomplishments. Balan most recently served as Vice President of Corporate Development for Polaris Industries and currently serves on the company’s board of directors. He will now be responsible for leading Repairify’s expansion into the mobile vehicle electronic services market.
UAP has announced that Manuel Furtado will join the company as Territory Manager for East Quebec, which includes Montreal Manuel Furtado. and the Ottawa region. Furtado has worked in the paint and body shop supplies industry for the past decade, with experience in business development, major accounts and developing sales strategies. The company stated that Furtado’s extensive experience in sales and marketing will contribute to actively developing the brand in Ontario and Quebec.
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Regional News | British Columbia
Okanagan College sweeps BC Skills Competition The awards ceremony at the BC Skills Competition was a proud day for Okanagan College’s collision repair program. The Automotive Collision Repair competition saw every single place on the podium occupied by an Okanagan student. Andreas Roth, a Level III apprentice at Okanagan College, won gold in the competition. Caleb Loewen and Marcel Kaemmerzell took home the silver and bronze medals, respectively, completing Okanagan’s sweep. The competitors were evaluated on their skills across a variety of tasks, including welding, plastic and metal repair and damage analysis over the 6.5-hour competition. Danny Marques is a collision repair instructor with Okanagan College. He says that while preparation plays a big role in students’ success, it is their ability to perform under pressure that is the determining factor on competition day. “We couldn’t be prouder of these three students – and all the students who represented OC and themselves so well at the competition,” says Marques. “As coaches, we obviously try to mentor the students as
Okanagan College students on the podium at the BC Skills Competiton. From left: Caleb Loewen (silver), Andreas Roth (gold) and Marcel Kaemmerzell (bronze).
much as we can, but ultimately they are the ones competing and it’s their ability and motivation that sets them apart.” The BC Skills Competition took place at the Fraser Valley Trade & Exhibition Centre in Abbotsford. For more information on Okanagan College, please visit okanagan.bc.ca.
CSN-Frank’s Auto Body named Shop of the Year by BASF BASF’s 2016 Performance Group III Shop of the Year award presented to CSN-Frank’s Auto Body. From left: BASF Refinish Sales Director, Tim Dawe; BASF Refinish Marketing Head, Dan Bihlmeyer; CSN-Frank’s Co-Owner and Manager, Matt Brunelle; BASF Refinish VP, Marvin Gillfillan and BASF Business Development Managers, Mark Livingston and Cameron Lavender.
BASF awarded the 2016 Shop of the Year designations to seven collision repair shops at the recently concluded 2017 VisionPLUS Performance Group Business Conference in Litchfield Park, Arizona, but only one Canadian shop made the list: CSN-Frank’s
Auto Body of Vernon, British Columbia. Winners are selected based on overall improvement and gross profit improvement from the previous year, along with excellent Performance Group preparedness and participation.
Van donation to benefit youth group From left: Ryan Pederson and owner Mike MacLaren of CSN-Reliable Auto Body, Theo Devries of Courtenay Fellowship Baptist Church and and Curtus Larson of CSN-Reliable Auto Body. The facility recently donated one of its courtesy vans to the church’s youth group.
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“When I started with the group, I thought our shop had maxed out and we couldn’t take any more cars,” said Matt Brunelle, Co-Owner and Manager of CSN-Frank’s Auto Body. “The Performance Group has shown me many areas of additional productivity from administration, to paint, to body. I always come back from meetings with a few ideas to improve the shop, and Mark Livingston, our BASF BDM (Business Development Manager), has been extremely helpful in the process.” The Business Conference brings all BASF Performance Group members together to network with members of other groups they may not, otherwise, find the opportunity to connect with. The conference highlights business best practices, training, the future of the industry and how to find good employees to compete against the industry-wide issue of aging technicians.
CSN-Reliable Auto Body recently donated one of its former courtesy vehicles to be auctioned for the benefit of youth programs in Courtenay, British Columbia. Proceeds from the auction go to the Courtenay Fellowship Baptist Church to continue its youthfocused community work. “CSN-Reliable Auto Body recently donated one of our courtesy vehicles, a 2009 Pontiac Montana Van to the Courtenay Fellowship Baptist Church for their ‘Junior High’ youth program,” says Lori Egan of CSNReliable Auto Body. “They’ll auction the van and use the proceeds to send youth to camp this summer. CSNReliable Auto Body has always been a huge supporter of our local community. We strongly believe you should ‘give where you live!’”.—by Barett Poley
Alberta | Regional News
CARSTAR partners with Oilers, Flames for Cystic Fibrosis Canada
From left: Scott Lavery of CARSTAR, Michael Piper of CARSTAR, T.J. Brodie of the Calgary Flames, Candace Goldie of the Calgary Flames Foundation and Brandon Newell of Cystic Fibrosis Canada and his family.
CARSTAR has partnered with hockey teams twice in recent months to raise funds for Cystic Fibrosis Canada. First, CARSTAR and the Calgary Flames Foundation, in partnership with T.J. Brodie of the Calgary Flames, presented a $75,000 donation raised through the Skate in Strides program. For every Skate in Strides pair of skate guards or hat purchased, Brodie and the Calgary Flames Foundation match those proceeds. “Skate in Strides provides fans an
CARSTAR franchise partners, staff and members of the Edmonton Oilers Communication Foundation present the donation to Cystic Fibrosis Canada. CARSTAR has raised over $3 million for Cystic Fibrosis Canada to date.
opportunity to get involved in the fight against cystic fibrosis, while they cheer on their favourite team,” says Michael Piper, Regional Director of Western Canada at CARSTAR Canada. “We’re lucky to have T.J. Brodie and the Calgary Flames Foundation as partners in this fantastic initiative, because they truly care about supporting Cystic Fibrosis Canada.” Just a few days later, CARSTAR and the Edmonton Oilers Community Foundation presented a $14,250 donation to Brandon
Newell of Cystic Fibrosis Canada. “This initiative was a fantastic way to cheer on our favourite hockey team, while also raising money and awareness for cystic fibrosis,” says Darryl Hemstreet of CARSTAR Red Deer. CARSTAR donated $500 for ever y overtime game played by the Oilers for the season. The donation was matched by $250 from the Oilers Foundation. To date, CARSTAR has raised over $3 million for Cystic Fibrosis Canada.
Concours Collision Centres achieve I-CAR Gold Glass at three locations Three Concours Collision Centres are Friesen. “He doesn’t have now officially I-CAR Gold Class. Ken to have been at your shop Friesen is the owner and operator for t he longest amount of the Calgary-based repair chain. of time, but if he shows “From getting the idea in our great leadership skills, and heads to completion, the whole if the others follow him, process took about a year and a he’ll be a great fit. If your half,” says Friesen. “But it was more other employees see him than worth it. We really feel as if now working hard, they’ll want our qualifications on paper reflect to be trained too.” the work we’ve always done and are Overall, Friesen says that committed to doing.” certifications like I-CAR Concours Collision started in The team from Concours Collision Central in Calgary. The facility is one Gold Class are the future of 1981 with just 3,000 sq. ft. It has of three Concours Collision Centre facilities to achieve I-CAR Gold Class. the collision repair industry. since grown to four collision repair “I really think that this centres across Calgary. critical areas: Refinish Technician, Steel is a positive step for the Friesen says that one of the secrets to Structural Technician, Non-Structural industry,” says Friesen. “I hope others the success of the Gold Class process lay Technician and Estimator. Friesen says the follow the example. It can absolutely help in choosing the right role representatives people you pick are as extremely important to improve the industry and the image of to undertake I-CAR Platinum training. when it comes to achieving Gold Class. the industry as a whole if everyone gets on I-CAR Gold Class requires I-CAR Platinum “Pick somebody who you know is going board. We need to not just be accredited, Individuals as role representatives in certain to stick with you for a long time,” says we need to be certified.” —by Barett Poley June 2017 collision Repair 11
Regional News | Saskatchwan
SGI, Saskatchewan Polytechnic partner to give students access to late-model cars It all started with a Pontiac Sunfire in 2002. Since then, nearly 250 vehicles have been repaired by Saskatchewan Polytechnic Automotive Service and Auto Body Technician certificate students. Recently the long-running but little-known partnership between Saskatchewan Government Insurance (SGI) Salvage and Saskatchewan Polytechnic was celebrated at the school’s Saskatoon campus. For 15 years, SGI has supplied vehicles to the school’s certificate programs. “This program is a win-win; students get hands-on experience fixing damaged vehicles that could otherwise end up in salvage or scrap yards, and SGI customers benefit by reduced costs,” Saskatoon Westview MLA David Buckingham said on behalf of Minister Responsible for SGI Joe Hargrave. The vehicles are classed as total losses, but every repairer knows this doesn’t mean the car can’t be repaired. It just means it would cost more than the vehicle is worth. The total loss vehicles are repaired by students in Sask Polytech’s automotive shops at the Saskatoon and Regina campuses. SGI also supplies parts used in the repairs, mostly from salvage. The repaired vehicles are sold or are used by SGI employees who need to travel in the course of their work. Naturally, all repaired vehicles receive a body integrity inspection and a second stage mechanical inspection before they are allowed back on the road. By using total-loss vehicles from SGI, students get to work on current model vehicles that the industry repairs on a daily basis. This is a tremendous benefit both to the students and to the shops that will eventually employ them. SGI supplies 30 to 40 vehicles per
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Students and instructors from Saskatchewan Polytechnic recently came together with executives from SGI to celebrate a partnership that sees SGI provide the school with total loss vehicles.
year to Sask Polytech. Damaged vehicles used in the program are matched to the students’ level of training. “The SGI and Saskatchewan Polytechnic partnership is the first of its kind in Canada,” Saskatchewan Polytechnic President and CEO Dr. Larry Rosia said. “We are pioneers in this area of collaboration and training. The hands-on learning our students receive through working on total-loss cars from SGI is invaluable, and will help to increase their job-readiness upon graduating. Other post-secondary institutions have approached us for support to create similar programs in their provinces.” For more information on Saskatchewan Polytechnic, please visit their website at saskpolytech.ca.
Manitoba | Regional News
Red River College students take gold Two secondary and two post-secondary students are taking home gold medals after this year’s Skills Canada Manitoba competitions. In Autobody Repair, Joshua Villegas from Red River College has won gold in the post-secondary category, with Martin Krutsch from Steinbach Regional Secondary School winning in the secondary student’s category. Garrett Bohoychuk, also of Red River College took silver in the post-secondary Autobody competition. Amanda Clark from Red River College placed first in the post-secondary category for Car Painting. Charles Raymundo from Maples Collegiate took Car Painting gold for the secondary category. The four competitions took place at the Notre Dame and Roblin Centre campuses of Red River College in Winnipeg. Students competing in the Autobody Repair and Car Painting events joined more than 475 other secondary and post-secondary students and over 500 volunteers and staff for the annual competition celebrating the skilled trades Manitoba may be presently experiencing something of a boom in young tradespeople, at least when it comes to the bodyshop industry. While some provinces aren’t able to hold more than one or two competitions, Manitoba was able to hold Autobody Repair and Car Painting competitions for both secondary and post-secondary students. Maria Pacella, Executive Director of Skills Canada Manitoba, says that the changes in the industry are hopeful for the young people entering it. “Given the revolutionary changes in the automotive industry, there is no better time than now to be involved in this exciting industry. Immense opportunities lie ahead, as students will be a part
Joshua Villegas (L) and Garrett Bohoychuk (R) of Red River College, postsecondary medalists for Autobody in Manitoba. Photo by Tec Voc Photography.
of cutting edge training and work in the years to come,” she says. Speaking directly to students considering careers in the field, she says, “The autobody repair industry will experience many changes in techniques in the coming years; you will have opportunities to become specialists in your field. Your timing could not be better.” Pacella also notes that the newly flourishing skilled trades sector is important for all Canadians, saying “When young Canadians set a course down a path in skilled trades and technologies, our country’s future flourishes. Diverse occupations, ideas and skill sets are what drive innovation and economic prosperity. People with the right skills are what allow Canada to continue to be a global economic leader.”—by Barett Poley
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Regional NEWS | Ontario
Supporting the next generation at Tropicana Career Day
Representatives from CARSTAR, 3M and AkzoNobel with Tropicana students at the Career Day.
CARSTAR recently hosted the students of the Tropicana Employment Services Autobody Training Program at a special all-day tour. The event, now in its eighth year, had a slightly different feel this time. “Usually we have it in Hamilton at the CARSTAR facility, but it can be a challenge to bus the kids there,” says Collin Welsh, Regional Development Manager, GTA and Eastern Ontario, CARSTAR Canada. Instead Welsh had an idea. He had recently taken part in a training session at the AkzoNobel facility in Etobicoke. The company maintains a full-size autobody facility on the premises. A plan came together—the AkzoNobel facility, accessible by public transit, would be the site of this year’s event. “This year we wanted them to have the exposure to get in a spray booth. We had a series of fenders set up for them to paint,” says Welsh. “Not all want to be painters, but they should know how that works. It’s great to have that exposure so they know the environment they’re getting into.” The students also took in product demos from 3M and heard from senior industry people about how they moved through the industry and were able to find a niche that appealed to them. “Not everyone is going to be a painter. They heard about all the other opportunities as well, be it as an estimator, manager or salesperson. It was a fantastic day,” says Welsh. “It was one of the best career days we’ve had.” Students also attended a class on estimating, presented by CARSTAR’s Chris Bullock. The class provided the students with some exposure to how estimates are written and pay calculated per job. This information will serve them in good stead when they start working in the industry. Marc Tremblay is the Program Coordinator for the Tropicana Employment Services Pre-Apprenticeship Autobody and Collision Damage Repairer Training Program. “It was absolutely phenomenal. They put together a great event,” says Tremblay. “They got to use the paint booth. Everything was hands on. The kids came away with a much better idea of what they wanted to go into once they graduate. 3M was a big part of the event. But all of the companies involved generously donated their time.” The pre-apprenticeship program is offered by the Tropicana Employment Centre. It allows youth to prepare for a career in autobody and collision damage repair. There is also a 12-week paid work placement with an employer, as well as connections with employers.—by Jeff Sanford 14 collision Repair collisionrepairmag.com
QuebÉc | Regional News
Carrossier ProColor deploys CosmosSync across all locations Carrossier ProColor has announced the documents and numerous e-mails and phone deployment of CosmosSync in all Carrossier calls between all parties. ProColor collision centres across the network. “In order to remain competitive in our Carrossier ProColor is a member of CSN market, we must constantly be in search of COLLISION CENTRES. innovative solutions that will enable us to CosmosSync is a mobile application designed increase productivity and reduce operating to optimize the management of operations costs while continuing to offer an outstanding and communications in the collision repair service to our customers,” said Sylvain industry. According to a statement from Dufault, General Manager for the Carrossier Carrossier ProColor, deploying the CosmosSync ProColor network. “It’s a fragile balance that application will allow repair facilities to improve requires strategic planning geared towards their information management systems to innovation. The CosmosSync application achieve a higher level of performance, as well therefore adds itself to many other initiatives as simplifying communications internally and recently deployed in the network, such as the Sylvain Dufault, with insurance partners. online appointment reservation tool and the General Manager of Carrossier ProColor. The application allows users to take pictures opening of Carrossier ProColor’s own Training and scan documents with a cell phone or a Centre, in order to support our members in tablet, to which they can add notes in the form of text, drawings maintaining this precious balance.” or even voice notes, and finally, to automatically transfer and file A statement from Carrossier ProColor says that by adopting everything to a folder where all parties can have immediate access. it throughout the network, the company adds value to its service The app is designed to improve the process of exchanging offering by optimizing the repair process. information concerning estimates and repairs by eliminating For more information, please visit carrossierprocolor.com. More time wasted due to the manual management of pictures, information on CosmosSync can be found at cosmossync.com.
NAPA XPO Sale officially launched for 2017 The official launch of the 2017 NAPA XPO Sale was held April 13 at the Montreal Casino. The event was attended by about 130 industry stakeholders, including more than 60 suppliers. For the second consecutive year, the event will take place at the Palais des Congrès in Montreal on September 12 and 13. The exhibition area is expected to be nearly double that of last year. “Last year, the NAPA XPO Sale made a return to the Palais des Congrès and we received excellent feedback from our customers and witnessed great participation from all stakeholders,” said Alain Primeau, Regional Vice-President, NAPA Québec. “This year we’re doubling the area and we’re already seeing a lot of interest from our partners.” The organizing committee took the opportunity to present the main activities that will take place during the event, as well as the NAPA Points promotion, which will allow attendees the opportunity to receive prizes throughout the exhibition. Several activities and numerous promotions are also on the program. For more information, please visit napaxposale.com.
Alain Primeau, Regional Vice-President for NAPA Québec.
June 2017 collision Repair 15
Regional NEWS | Atlantic
Preparing for the future at CCIF Fredericton There was no doubt, at the second CCIF of 2017, that the desire to better the collision repair industry was at the forefront of attendee concerns. The conference drew over 250 people to the Delta Fredericton in Fredericton, New Brunswick, where the atmosphere was electric with rich conversation, passion and a willingness to learn and improve. “When I was first introduced to a collision repair shop, it was a dirty building with no ventilation, and people were smoking cigarettes while working on cars,” said the first speaker, Mike O’Brien, Mayor of Fredericton. He warmly shared his own evolving perception of the collision repair industry, speaking directly this goal-oriented and constantly evolving nature of this industry. “Now shops are pristine and employee-centric,” he concluded.
Brigitte Pesant, CCIF Administrator, and Joe Carvalho of Economical Insurance,CCIF Chairman, delivered the opening remarks before welcoming Annabelle Cormack, President and Founder of Cormack Recruitment to the stage. “We tend to hire reactively,” said Cormack, as she outlined hiring tactics employers should adopt in order to successfully recruit talented and capable individuals. Cormack explained that hiring someone is usually unplanned and unexpected, which results in going into “panic-mode” and hiring less than ideal employees. Instead, she argued, we should hire in a way that is “planned and intentional, proactive rather than reactive.” Cormack presented three essential tactics to attain proactive hiring: plan and anticipate, network and maintain momentum. Following Cormack was Patrice Marcil of Axalta Coating Systems, with the Collision Industry-Education Connection Project Update. He stated that the main objective of CCIF was to engage the collision repair industry by collaborating with recruitment, development and employee retention. He went into more detail, outlining the four action items the CCIF committee focuses on: the roles of a collision centre, instructor development, workforce retention and school improvement and support.
Energy was high when Pesant joined Marcil on the stage to provide an overview of the Collision Industry-Education Connection Program. This exciting year-long sponsorship program offers various financial and in-kind opportunities to students. “We want to help schools be able to offer training that is in-line with what is actually needed in the collision repair industry,” noted one of the speakers. Andrew Shepherd of I-CAR Canada followed, presenting an update on the training organization’s plans for the near future. “15 to 20 new courses will start to come out, because OEMs want to get technical information out there, and I-CAR will be the avenue to do that,” he said. “We can expect shorter courses (one to two hours instead of four) that are more specific to your needs. There will also be more vehicle-specific courses available.” Raising the educational standards for present and future repairers was the topic of many discussions throughout the conference. The sentiment of the speakers was that refining collision repair related education programs in high schools and other institutions would improve student’s understanding of the industry, offer new opportunities, and improve recruiting prospects for employers. A handful of people noted that they visited high schools hosting repair shops and classes, but their classrooms frankly did not have the tools, equipment and space needed to nurture a positive image of the industry.
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CCIF Chairman Joe Carvalho of Economical Insurance (left) and Patrice Marcil of Axalta. Marcil has been named as the next Chairman of CCIF.
New technologies are beginning to appear in the automotive industry, according to Brandon Roy, Products Specialist for Axalta Coating Systems and instructor for I-CAR Canada. He outlined various innovations in the automotive industry, including Corning’s Gorilla Glass, a stronger but thinner new glass. “Vehicles are getting heavier from increased tech, and OEMs are trying to figure out how to lighten it,” said Roy. He also touched on the advantages of pre- and post-scanning, and the coming age of intelligent damage protection systems, which tell drivers and repairers about a damaged panel using sensors bonded to the panel’s backside. Shops of the future promise to be full of strange gadgets indeed. Pre- and post- scanning discussions dominated the panels at CCIF Fredericton. Attendees later heard from Jean-Luc Sauriol of ALLDATA. Sauriol, who presented a pre- and post-scan analysis, including information on YAW-Rate sensors, why one should perform a pre-scan, the benefits of freeze frame data as well as a live demonstration of a scan. Sauriol hammered home the point that anyone is capable of learning how to scan. “I can teach you to scan in ten minutes. You can do that,” he said. “It doesn’t matter if it’s a Ford or Chrysler, it pretty much works all the same.” After performing the scan, which consisted mainly of following the scanning device’s directions, Saurio asked the audience, “was that easy?” To which the audience responded in enthusiastic chorus: “yes!”
The conference ended on Jim Kenzie, an automotive journalist with the Toronto Star and TSN’s Motoring TV. He touched on several themes, including vehicle safety, AVs and electric vehicles. “Electric vehicles,” he stated, “are considered to be a saving grace from the petroleum infested world,” but he is doubtful. “Our electric infrastructure simply cannot handle too many electric vehicles. Where are we going to get that much electricity? And even if we build a nuclear generator, whose backyard will we put it in?” He also noted that we use diesel powered vehicles to transport electric batteries. “Until we can eliminate all diesel vehicles from the making of electric vehicles, we have a long way to go.” The next CCIF meeting takes place September 28 and 29 at the Westin Edmonton in Edmonton, Alberta.—by Erin McLaughlin
BITE-SIZEDgoals Smaller goals are easier to achieve
By Jay Perry
n the last issue, we covered goal setting. I hope you have had time to reflect upon some very BHAGs (Big, Hairy, Audacious Goals). In this article I will give some tips on managing these and other goals in order to increase your chances of successfully accomplishing them. Setting interim goals will help you stay on track. Commonly called milestones, these markers of measurement are the most accurate ways to know in certain terms if your goals are going to be reached
So, it goes like this; if your five-year plan is to have a thriving company with a rainy-day fund of $100K you need to divide it by five (the number of years to complete the goal). That is the amount that must be banked over the next 12 months. To further assist you in making this realistically achievable, break that amount into a monthly number by dividing the yearly amount by 12. If necessary, and dependent on your cash flow, you might want to consider taking a look at the weekly amount. You will see that it all becomes
Within these manageable parameters you can start to see that the goal can be reached.
in a timely fashion, and how you will ensure this. Interim goals also help with identifying what resources we may need to accomplish the goals we have set. When a milestone is approaching you should take inventory of your progress. In doing this, you’ll have the overall goal divided into bite-sized pieces, compared to the real environment. In my best-selling book, Success Manifesto, I illustrate this point with the goal of creating a “rainy-day fund.” Say you want your funds to be at around $100k. It is not very likely that you can do this with one deposit. You must instead break down that large goal into those bite-sized pieces. Over what timeline will the funds be produced? Take that timeline and break it down further into increments that can be managed. Within these manageable parameters you can then start to see that the goal can be reached. Let’s say you have a five-year goal. Break down the five years into one-year increments. What will you need to accomplish within the next 12 months that will lay the foundation to ensure that the following 12 months are successful? 18 collision Repair collisionrepairmag.com
much more manageable at this level. For example, our $100,000 rainy-day fund becomes a $385 weekly contribution to that special bank account ($100,000 / five years / 52 weeks). The principles are exactly the same for any goal you want to achieve. Say it is an expansion: use the same formulae of timeline broken into foreseeable increments that may include property or equipment acquisition, business partner meetings, key personnel hires, etc. all clearly mapped out onto a calendar reflecting the desired timeline. Again, if necessary break those down to even smaller components so that all things are doable in an effective way that doesn’t consume you to the exclusion of the day-to-day things you must accomplish to stay the one who is driving. Jay Perry is co-author of the book “Success Manifesto” with Brian Tracy, and the founder of Ally Business Coaching, a process improvement and leadership development firm. He can be reached at firstname.lastname@example.org.
MeetingMAGIC Make the most of your company’s meetings By Chelsea Stebner
eetings. That can be a dreaded word depending on many things. As a business practicing open book management, we have mini meetings. And forecast meetings. And tailgate meetings. And general staff meetings. Whew. Just typing that out makes it seem like a) we have too many meetings, and b) we’re boring. I don’t think either of those statements are really true, but it’s always a good idea to re-evaluate your strategies for meetings and ensure that you’re keeping your team engaged, along with encouraging continual change.
Goals and Outcomes
Having an expected outcome of a meeting is key to success. For example, the tailgate meetings at our shop include production staff and one admin—the goal is to ensure clear communication in the production shop, along with ETAs on parts and critical customer updates. We do have other means in place to communicate some of
20 collision Repair collisionrepairmag.com
this information, but in our shop technicians can move around to where they are needed which means that a quick tailgate ensures we haven’t missed something. This meeting also celebrates production shop and refinish shop hours produced each day or shows where there may be a bottle-neck. I’d bet lots of shops don’t have a tailgate. If your shop don’t have a production manager (like ours) a tailgate can take its place. Could we be ready for some change? You bet!
Engagement and Celebration
Some of our meetings, often our forecasts, include celebration. Too often we focus on negatives: in sales, in costs, in lost production time. In our forecasts, we try to engage each teammate by teaching them about business, and then asking for their input on how we spend and save. Celebration also includes shout-outs to a team member for a job well done. Do you formally or informally read out a review from a customer praising
a team member? Do it. And watch that teammate shine. These people are your work family. Take a few minutes to bring your crew together and celebrate birthdays. With cake! Stop and celebrate the little things and watch your team engage more.
about that pack of sandpaper? How about the cost of gas to run the booth? Play “The Price is Right.” Or…this may be our next trick—hold each other accountable with a game of “Throw your Teammate under the Bus?” I bet it would work to keep those safety glasses on people’s eyes and not just on
Don’t underestimate the power of nourishing people. Life Lessons
My favorite meetings. Storytelling is one of the oldest ways to teach a life lesson or create opportunity for change. Our team at Parr has been lucky enough to engage some amazing speakers, from well-known business people in our community, customers with stories of resilience and strength, soft spoken, salt of the earth folk with insane life stories to share. Recently we had the privilege of listening to Rick Langlais, founder of Hands On Outreach. His story and many others resonate with each of our team members in different ways. They might ignite passion and stewardship, they might offer guidance in a tough decision, it might shock the heck out of someone so they don’t make the same mistake or it might simply light a fire under someone to get out there and pursue their dreams!
Play a Game
Does your team know how much that seam sealer costs? What
their heads. Throw in a sweet prize for the winner! And this is one which we must try at our shop. Play. Bring Slinkies, Lego and Playdough and let the creativity flow.
Have good food (especially pizza!) and people will show up. Fellowship and camaraderie begin over food. Don’t underestimate the power of nourishing people. Then roll out that crucial conversation that needs to be had. Meetings. They are a must do. So shake it up, play a game, nourish your team and create an atmosphere of engagement and creativity to keep the productivity flowing. Chelsea Stebner is a co-owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, Saskatchewan. She can be reached at email@example.com.
June 2017 collision Repair 21
PROFILES OF SUCCESS
Personal Connection Sandy and Nick Liguori built Woodchester Auto Group by forging relationships By Mike Davey
Sandy and Nick Liguori have been full partners in the business since 1990, when they opened their first dealership.
ife is all about turning points. For Sandy Liguori, one of those turning points came when he showed up for work one day and found the sheriff had put a lock on the door. Today Liguori is the co-owner of Woodchester Auto Group, consisting of Woodchester Collision and several auto dealerships, as well as serving as the President of Consolidated Collision Services (CCS), a collision network that focuses on dealers. But back in 1977, he was a painter who found out the hard way
that his bosses were in trouble. That’s a rough way to start a day for anyone, but it may have been worse for Liguori. He wasn’t simply an employee of the business, but had been subletting the paint shop from the shop’s owners. This meant a big personal investment in paint, materials and tools was behind the sheriff ’s lock. “I called a guy I knew named Mortenson who worked for Cadillac Fairview and explained the situation to him,” says Liguori. “He said, ‘why don’t you rent a place?’ I told June 2017 collision Repair 23
PROFILES OF SUCCESS
A waiting room filled with performance cars awaits customers at Woodchester Collision. The waiting room definitely blurs the line between what you would expect at a shop and what you might find at a high-end dealership.
him I couldn’t afford that, but he said he would rent me a place and guide me a bit. One of his first pieces of advice was to call the bank that held the mortgage on the old place. I ended up buying everything from the bank for about 10 cents on the dollar.” That was in July 1977. Liguori’s shop, Woodchester Collision, celebrates its 40th anniversary this year. The shop is located in Erin Mills, a very densely populated part of Mississauga, one of the largest cities in Ontario outside of Toronto. It wasn’t always that way, though. When Liguori opened the doors at Woodchester Collision, the population was only about 70,000. Throughout the 80s, Mississauga was the fastest growing city in the world, and today the total population is about 950,000. In 1977, the story of Mississauga’s explosive growth was just getting
started. Liguori was one of the entrepreneurs who was in on the ground floor. “There were a lot of people in Erin Mills then who were passionate about their business,” he says. “John Sleeman of Sleeman Breweries was here then. In fact, his fatherin-law was my first customer. He came in for some pinstripes and body molding. The bill came to $30, but I charged him $1.” Liguori still has that dollar, by the way, and John Sleeman comes by every Christmas with a case of beer. Liguori may be something of a specialist when it comes to making long-lasting connections. His first mentor was Mr. Matthews, his autobody teacher at New Toronto High School. In 1972, Matthews introduced him to Norm McLellan, who ran Courtesy Chev
Olds. It was there that Liguori started doing custom work, hot rods, muscle cars and painting motorcycle tanks. It was also where he met Don Prevo. “Donnie was one of my mentors in the paint department. He taught me a lot about how to paint,” says Liguori. “At the time we were flat rate and we made a great team.” They still make a great team. Prevo, at 70 years old, still works at Woodchester Collision. It’s easy to see the connections between Woodchester Collision and the dealership side of the business from the vantage point of 2017, but the connections have been building since 1978. “We started pursuing warranty work, which a lot of other shops wouldn’t touch,” says Liguori. “We started doing the work for Applewood Chev Olds and other dealerships.” By 1980, Woodchester Collision had grown significantly. The business needed a new
Jose Moniz and Loris Pellizzer. Never underestimate the importance of team morale. The staff at Woodchester Collision seem happy in their work. An immaculate shop environment probably helps. 24 collision Repair collisionrepairmag.com
PROFILES OF SUCCESS
building, so one was built. It was one of the first bodyshops to be built as a bodyshop and included something very rare at the time: a drive-in appraisal centre. The design must have been effective as Woodchester Collision still operates out of that building today. The business grew steadily throughout the 1980s, all the while forging relationships with local dealers and other stakeholders in the collision industry. The business moved to a new level in 1990. “There was a Volvo dealership for sale. My brother Nicky came in as a partner and we bought the land and building,” he says. Nick and Sandy have been partners ever since. The plan was not to run a dealership, but to rent out the building. However, a phone call from Ray Watkins of Nissan Canada Kelvin Li of Woodchester Collision. The company takes employee safety seriously. soon led to a change in plans. “Ray told us they were closing the location at Mavis and Dundas, and asked if we would turn the Volvo dealership into a Dealers and Mike Beier, General Manager of industry and the various paths available. Nissan dealer,” says Liguori. Woodchester CCS. He also notes that it’s their dedication “We’re going to show them all the avenues Nissan opened to the public in 1991 and to working with all involved players that they can go down. There’s marketing, sales, the Liguoris officially entered the dealership has led to success. parts, all of these areas they can choose,” world. Another dealership soon followed. “Look at the customer and the people says Liguori. “This is also something where “We were awarded the Infiniti franchise serving that customer. The customer is shared we need all the players to work together. in 1991. In fact, we sold the very first The insurers can give us a Infiniti in Canada, to a guy named total loss that’s still repairDan Wallace,” says Liguori. By 2006, able, we can fix it up and the brothers owned seven franchises. donate it to a church or Running a high-volume collision community group. Those centre as well as several dealerships cars could go to help the gave Liguori a perspective on both needy. We’re getting great businesses shared by very few people. support from BASF on this The experience was instrumental in program, and we’re hoping helping Liguori as President of CCS. more companies will come CCS is administered by Consolidated onboard.” Dealers, a buying group for auto dealLiguori points out that ers. Liguori has been a member since there are still career paths 1990, but he became more involved in the collision repair inwith the organization when he joined dustry. It’s one of the few the board and introduced the company industries left where you to Renewit, a program dedicated to The exterior of Woodchester Collision. The building was purpose-built as a can start at the bottom, educating dealers on to how to retain collision centre, and was one of the first to include a drive-in appraisal centre. work hard, and rise. customers on the collision end. “You can come in as a “The dealers really didn’t have the car washer and end up tools to properly manage their collision by the dealer, the manufacturer, the insurer with many locations,” he says. “Our industry centres. They were usually relying on their and the bodyshop operator, and all of us are has a lot of opportunities for young people. managers to give them the information, but concerned about customer retention,” says We also want to get parents involved so often those managers would concentrate Liguori. “Working together with all of these they can see for themselves just how much more on getting the repairs out the door people will help us retain those customers.” the shops have changed and how the job than retaining the customer,” says Liguori. He may have expanded into the dealership itself has changed.” “The banner groups were all growing, and space, but Liguori hasn’t forgotten his roots, The collision repair industry needs fresh we knew that we needed to be proactive to or the mentoring he received at a young age. young talent, no doubt about it. It’s important retain those customers.” In conjunction with other interested parties, to remember that we also need mentors and CCS was officially launched in 2014 and Liguori is setting up Collision Training experienced people who can break down has since gone nationwide. Liguori credits Academy (CTA), an ongoing training project barriers between industry segments. In short, a lot of the growth to the team that has to introduce young people to the business. we need people like Sandy and Nick Liguori. worked on it since its inception, including Students start with a 12-week course that gives For more information on Woodchester Tom Langton, President of Consolidated them basic knowledge of the collision repair Collision, please visit woodchester.ca. June 2017 collision Repair 25
Brock Bulbuck and Des D’Silva on the impacts of the Boyd/Assured acquisition
he Canadian collision repair industry took on a new aspect in late May when Winnipeg-based Boyd Group announced a blockbuster deal for Ontario mega-chain Assured Automotive. The deal is a massive one and seems to be a defining event in the sector. Assured is the largest operator of non-franchised collision repair centres in Canada. Based in Ontario it has a large presence where Boyd, until now, had little. Collision Repair magazine interviewed Brock Bulbuck, CEO of Boyd, and Desmond D’Silva, CEO of Assured Automotive on the business deal that promises to radically reshape the collision repair landscape. Collision Repair magazine: Boyd operates hundreds of centres in the US, but seems to have largely stuck to Manitoba and points west in Canada until recently. What led up to the acquisition of Assured Automotive? Brock Bulbuck: We’ve wanted to expand into Ontario for a some time now. We’ve had one Ontario location for a few years. Queensway Auto Body in Kitchener. But prior to Assured, we hadn’t been very effective at growing our location count in Ontraio. CRM: Assured operates 68 collision repair centres in Ontario, including 30 intake centres co-located at automotive dealerships. That’s a very large regional presence. Beyond the size of the operation, what was it that made this deal attractive to the Boyd Group?
BB: When we looked at the Ontario collision repair landscape, Assured was by far the most advanced in having a meaningful, developed platform for additional growth. The management team has shown outstanding both performance and outstanding growth. Obviously, Assured has a very strong brand. They were the stand-out in terms of a desirable platform for Ontario and eastern Canada. CRM: An acquisition of this size doesn’t happen overnight and it’s probably safe to assume it’s been in the planning stages for some times. What finally got everything moving? BB: The deal finally came about when Des stopped saying “No” to my asking him to sell to us and join us. I’ve known Des the better part of 10 years and Tony (Canade, President
26 collision Repair collisionrepairmag.com
of Assured Automotive – Ed.) almost as long. I can’t recall the first time that we would have approached them to ask them to consider selling their business, but it was certainly well over five years ago. They said “No” many, many times. More seriously though, in the last year there were some compelling circumstances with the Assured ownership group and alignment on future strategy that probably changed the “No” to a “Yes”, but I will let Des tell you about those. CRM: Des, for your part, what finally led you to say “Yes” to the deal? Des D’Silva: We wanted to continue to grow and take Assured to the next level, but we had some partners in the business that were interested in retiring rather than investing
Brock Bulbuck, CEO of the Boyd Group.
Des D’Silva, CEO of Assured Automotive
This deal brings an emerging national corporate-owned player to a marketplace that has really been, predominantly, franchise-based. – Brock Bulbuck, CEO of the Boyd Group.
further in the business. Boyd therefore represented a great partner to allow us to continue to grow and develop Assured. The combination of our two market-leading companies represents an excellent strategic fit and creates an even stronger industry leader. We’ll be better positioned to grow and to deliver innovative, best-in-class service to insurance clients and vehicle owners across North America. We are looking forward to being part of the Boyd Group, both as part of the leadership team, as well as significant unitholders. CRM: So, even after this acquisition goes through, growth will be an important part of the strategy?
BB: We have a stated goal to double our size by 2020, and that means all of our business units need to double in size. When we’re looking for platforms in new markets, we’re looking for businesses that are able to grow. They need to be champions of growth in their markets. That was Assured. So... yes...Des and Tony will be responsible for continuing to grow eastern Canada.
CRM: What effects do you think this deal will have on the national collision repair landscape?
DD: Assured, like Boyd, has pursued an aggressive growth strategy. We added 35 locations, including 17 intake centres, since 2011. The expectation is to combine our leading market position and footprint in Ontario with Boyd’s existing resources and acquisition expertise to build new avenues for growth.
Executive Vision focuses on discussions with key players in the auto claims economy. If you would like to know what’s on the mind of a specific individual involved in the collision repair industry, please contact firstname.lastname@example.org.
BB: Probably the most significant change is that this deal brings an emerging national corporate-owned collision repair player to a marketplace that has really been, predominantly, franchise-based. I think that’s the big change nationally.
June 2017 collision Repair 27
Terms of Engagement Health Check, Initialization and Calibration shouldn’t be used interchangeably
n the collision repair industry, the terms Health Check, Initialization and Calibration are often incorrectly referred to as one another. Although there may be some similarities, it is critical to know the differences between these three procedures in order to properly understand and communicate your repair, according to Paul Stella, Manager Collision Repair – Toyota Canada Inc.
“There can be hidden faults within your customer’s vehicle that you could potentially miss.” HEALTH CHECK Toyota vehicles have electrical systems that are designed to set codes, known as Diagnostic Trouble Codes (DTC), if a system fault is detected. However, not all DTCs illuminate a Malfunction Indicator Light (MIL) on the dashboard. This means that there can be hidden faults within your customer’s vehicle that you could potentially miss. A Health Check, also known as a “Diagnostic Scan,” is a function of the Toyota - Techstream scan tool that checks the vehicle control modules for these DTCs and then reports the results back to the technician. If you fail to uncover these hidden faults, your customer may drive home from the shop only to return for a subsequent repair due a system not operating properly or when a light on the dashboard finally illuminates. Not only is this frustrating for your customers, but it’s bad for your reputation as a collision repair professional. Toyota’s Techstream scan tool allows you to run Health Checks on the vehicle’s control modules and check for DTCs.
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INITIALIZATION An Initialization is an operation performed by the technician which facilitates vehicle control modules to program themselves to operate as the customer expects. Some of the comfort systems in your customer’s vehicle need to be initialized after a repair, and the vehicle’s Owner’s Manual or Repair Manual, inside of Toyota’s Technical Information System (TIS), can tell you when this is necessary and to which systems it applies. For example, if you disconnect the battery on a 2009 Prius, then the one touch windows on the vehicle can lose their initialization. This means that your customer would no longer be able to open and close the windows with just one touch. After reconnecting the battery, you would need to initialize the one touch windows in order for them to regain their full functionality. There are many other systems that require an initialization, and you should refer to the Repair Manual, or Owner’s Manual, for the vehicle you are repairing in order to be certain which systems need to be initialized before you consider a repair to be finished.
Techstream Lite is an OEM scan tool available to collision repair centres for a relatively low cost. It provides collision centres with factory service information and diagnosis for Toyota, Lexus and Scion vehicles.
CALIBRATION A Calibration is a vitally important operation performed by the technician where he/she provides criteria required by a control module to function as designed. For example, when calibrating the Occupant Classification System (OCS), the technician uses the Toyota Techstream scan tool and puts the passenger front seat in an unloaded position and the OCS ECU programs this as zero weight in the seat. A check procedure, using specified weight, is required immediately afterwards to confirm its accuracy. The system then uses this calibration to determine whether the front passenger seat is occupied by an adult, a child or is unoccupied, and then operates the airbag accordingly. If
the system is not calibrated correctly, then the airbag may not operate correctly either. Be sure to check the precaution section of the vehicle’s Repair Manual to be certain whether or not a calibration is necessary to ensure the safety and functionality of your customer’s vehicle. Collision centres can purchase Techstream Lite that provides collision centres factory service information (manuals) and diagnosis (scanning) for Toyota, Lexus and Scion vehicles for approximately $1400 USD plus the cost of a laptop. For details visit techinfo.toyota.com or contact your local Toyota / Lexus Dealer.
June 2017 collision Repair 29
FACTS & FIGURES
Illuminate the Field
Collision Repair magazine readers weigh in on total losses and subcontracting By Mike Davey
Total Losses Total losses seem to be on the rise over the last few years, according to the results of our latest survey. Respondents were asked to indicate if they thought total losses over the last three years had increased, decreased or stayed the same. The majority of our survey respondents (65 percent) indicated that they thought total losses had increased over this period. The minority opinion (35 percent) indicated that total loss levels had remained relatively flat over that time. None of the repairers surveyed indicated that they had seen a decrease in total losses. The various insurance customer satisfaction studies released by J.D. Power over the last few years have all tended to indicate that total loss claims negatively impact customer satisfaction for insurance carriers. Total losses seem to be much more common for some respondents than others. The majority of those surveyed (53) indicated that fewer than 10 percent of estimates written resulted in total loss. A further 38 percent indicated that they were seeing total loss numbers between 10 and 20 percent. The smallest group we found in our survey were those indicating that between 20 and 30 percent of estimates resulted in a total loss. These shops comprised just 9 percent of responses. Finally, we asked our readers to give us a ballpark average age for total loss vehicles. The largest group (43 percent) indicated that the average total loss vehicle was between six to eight years old. The next largest group, at 37 percent, said the average total loss was between three to five years old. We also received some responses from the other ends of the spectrum. At the low end, 3 percent of respondents noted that the average total loss vehicle was between one and two years old. At the high end, 17 percent of respondents indicated that the average was nine years old or older. Regional differences and clientele variations may help to account for this.
Have total losses increased? Increased (65) Stayed the same (35)
The majority of survey respondents indicated that total losses have increased in the last three years, with the minority indicating they stayed the same. The shops surveyed were also given the option of indicating that total losses had decreased, but this answer received no responses.
Roughly what percentage of estimates at your facility result in total losses? Fewer than 10 percent (53) 10 to 20 percent (38) 20 to 30 percent (9)
This chart shows the percentage of estimates that resulted in total losses at the shops participating in this survey. While the majority of respondents indicated that fewer than 10 percent of estimates resulted in a total loss, a significant number are seeing total loss rates between 20 and 30 percent. June 2017â€‚ collision Repairâ€ƒ 31
FACTS & FIGURES
Subcontracting The typical car accident often results in damage that isn’t part of traditional collision repair, specifically mechanical repair and glass work. Traditionally, damage such as that has been handled by subcontractors. However, our most recent survey seems to show that more repairers are bringing these operations in-house. There are at least two reasons a repairer might choose to do this, and they’re both fairly obvious. First, having an operation entirely under your control should lead to decreased cycle time. Second, why pay subcontractors when the business could instead bring in more revenue? We asked our survey respondents to tell us if their facility offered mechanical service and repair. In the case of multishop operators (MSOs), they were asked to answer “Yes” if at least one facility offered this service. The majority of survey respondents (64 percent) offered at least some mechanical service in-house. The remaining 36 percent of respondents do not. We also received a few comments on this question. All of the comments were very similar, boiling down to “only if it relates to the collision.” In other words, they have the capacity to perform the work, but do not engage in runof-the-mill mechanical repairs or services. Respondents who indicated they did mechanical work were asked how long they’ve offered this in-house. This part is really interesting. The majority (48 percent) indicated that they have always offered mechanical repair. The next largest group (34 percent) said they’ve been doing it for 10 years or more. The remaining respondents, however, have been doing it for less than a year (17 percent). There were other answers available, but no respondents chose them. In the case of our survey respondents, there are really only two groups. There are those who have been offering it for a long time, and those who have just started. Glass work shows more variance. Subcontractors are still in the lead among our survey respondents (47 percent), but not by much. A total of 42 percent of our survey respondents have brought glass work in-house. The remaining 11 percent of respondents are currently subcontracting, but considering bringing glass operation into the business. 32 collision Repair collisionrepairmag.com
How long has your facility done glass work in-house?
Judging by the results of our survey, many repairers have been slowly but surely bringing glass work in-house, but a substantial number have always done it this way.
Between one and three years (20)
More than 10 years (12)
Between three and seven years (15)
Between seven and ten years (13)
How long have you offered mechanical service and/or repair?
Less than a year (17) More than 10 years (35) We’ve always offered this (48)
The majority of our respondents who perform mechanical work in-house have been at it a long time. However, a small but significant portion have added this service in the last year.
AkzoNobel shareholder tries to force Chairman out; warm weather leads to slower sales By Jeff Sanford
oday’s auto claims economy is truly global in scope. The actions of players on the world financial stage will inevitably impact repairers in the Canadian marketplace. In every issue, we comb through all of the financial news and updates from companies big and small to present you with the most significant updates.
Antony Burgmans, Chairman of AkzoNobel, recently resisted an attempted ouster led by shareholder Elliot Management.
Axalta’s CEO Charles Shaver said in a recent conference call that the company has a “highly eventful quarter.”
The AkzoNobel/PPG takeover drama moved into a new phase recently, as one of AkzoNobel’s investors, Elliot Management, has announced it will take the case to court. At time of publication PPG had put forth three offers and AkzoNobel management has rejected them all. Elliott is somewhat notorious for its active efforts to generate financial returns and the company has begun legal proceedings to remove Antony Burgmans, Chairman of AkzoNobel, and the one who determines rulings of a special board that can overturn shareholder actions. AkzoNobel is headquartered in the Nether-
lands. Under Dutch law, the Chairman holds special rights concerning the ownership of the company. Apparently Elliott Management believes a new Chairman would be more willing to accept an offer from PPG. According to a report from Reuters, “Successful hostile takeovers of Dutch companies by foreign buyers are extremely rare, and face an array of difficulties, not least Akzo’s constitutional defense mechanism put in place in 1926 which can be activated to repel unwanted takeovers as well as some board changes ... In addition, the country’s economy minister and other politicians have said they oppose a takeover of Akzo.”
The CEO of Axalta, Charles Shaver, hosted a conference call for analysts addressing the company’s latest earnings report. According to Shaver, “Our results overall were strong and were led by a robust 8.9 percent volume growth ... Overall, we continue to see a favorable global business climate driving stable demand for products in the vast majority of our markets, as well as some stabilization in Latin America that we remarked on our last quarter, and fairly steady vehicle demand in North America for both light vehicle and commercial vehicle end markets.” Axalta posted net sales growth of 7.7 percent for the period. The company enjoyed volume growth of 8.9 percent, the company’s “strongest for some time,”
according to Shaver. “We’re particularly pleased to see positive organic growth ... for all four of our end markets.” Shaver noted that a “certain headwind seen in 2015 and 2016 bottomed in the fourth quarter of last year. This includes broader line America demand as well as areas of industrial and commercial vehicle coatings that tempered growth during 2016.” Axalta had a “highly eventful quarter,” starting with the successful completions of the Ellis Paint Company and Century Industrial Coatings acquisitions. Earlier this month, the company also announced its largest transaction to-date, the agreement to purchase the North America industrial wood coatings business of Valspar for $420 million. June 2017 collision Repair 35
Brock Bulbuck, CEO of the Boyd Group, said recently that extremely warm and dry weather led to slower same-store sales growth.
John G. Morikis, CEO of Sherwin-Williams. The company’s acquisition of Valspar is back on track after Valspar sold its wood coatings unit to Axalta.
Henry Buckley, President and CEO of Uni-Select, recently noted that the company continues to focus on optimizing its business.
Boyd Group Income Fund announced its Q1 numbers in May. Revenue came in at $378.9 million, an increase of 8.2 percent over the same period last year. The company registered modest same-store sales growth of 1.2 percent. The 8.2 percent increase includes new revenue from the 65 locations added since the first quarter of 2016. CEO, Brock Bulbuck, blamed the slow same-store sales growth on the weather. “As stated in our Q4 2016 earnings results, the extremely warm and dry weather conditions we experienced in many of our markets, combined with currency headwind, had an
adverse impact on our results this quarter,” said Bulbuck in a press release. “Notwithstanding these headwinds, we still reported meaningful growth in sales and earnings and we continue to be confident that we are on track to achieve our previously stated long-term goal of doubling our size by 2020 ... Despite the impact of weather and currency in the quarter, our overall results show that the business is robust.” The company added eight locations during the first quarter of 2017. For more big news from Boyd, please see page 26 in this issue.
The Sherwin-Williams acquisition of Valspar is currently on track. Regulatory hurdles meant one of the companies had to divest certain assets before regulators would allow the deal to go through. This led to Valspar selling its wood coatings business to Axalta. The Sherwin-Williams Company also announced financial results for the first quarter of 2017. Net sales increased $187.4 million, or 7.3 percent, to $2.76 billion, due primarily to higher paint sales volume in the Paint Stores Group and a change in revenue classification which increased sales in the quarter by 2.2 percent. The Global Finishes Group saw net sales increase 3.6 percent to $470.3 million in the quarter primarily due to higher paint sales volume and selling price increases.
Commenting on the financial results, John G. Morikis, Chairman, President and Chief Executive Officer, predicted that in the second quarter, “... we anticipate our consolidated net sales will increase a mid to high single digit percentage compared to last year’s second quarter ... we estimate [net income] per common share ... to be in the range of $4.15 to $4.35 per share, including a $.25 per share charge from costs associated with the anticipated acquisition of Valspar, compared to $3.99 per share earned in the second quarter of 2016.” Full year 2017 [net income] per common share guidance includes a $.40 per share charge from costs associated with the anticipated acquisition of Valspar.
Uni-Select reported solid Q1 numbers. The Boucherville, Quebec-based company announced that sales for the quarter were $297.2 million, up 12.6 percent from the same period last year. Earnings came in at $23.2 million, up 6.8 percent. Free cash flow was $22.2 million (an increase of 14 percent compared to the same period last year). The dividend was raised almost 9 percent and management announced they had added 17 new stores to the network. “We are pleased with our ongoing initiatives, in particular, our ability to acquire and successfully integrate select companies into our network, benefiting our sales and [earnings] growth. Our Canadian business experienced solid organic sales growth during the quarter in the corporate stores as well as with our independent customers excluding one independent member
loss. Total sales of FinishMaster US were impacted, as expected, by the product line changeover,” said Henry Buckley, President and CEO of Uni-Select. “Our free cash flows for the quarter increased, and we continue to be focused on optimizing our business” The impressive growth in sales was “... generated mainly from recent US business acquisitions, resulting in additional sales of $44.5 million or 16.8 percent.” According to a press release, “... organic sales were affected, as expected, by the product line changeover in the FinishMaster US segment while the Canadian Automotive Group was affected by a loss of an independent member. Without these impacts, the organic growth would have been positive.” Increases in free cash flow were mainly related to “improved operating income from accretive business acquisitions.”
36 collision Repair collisionrepairmag.com
Plastic Profit Repair, not replace, and reap the rewards By Barett Poley and Erin McLaughlin
John Wilburn of Polyvance demonstrates the company’s Nitro Fuzer plastic welding rig. The manufacturers of plastic repair tools note that shops can reduce cycle time and realize higher profits by leveraging the currently available technology.
lastic repair has come of age, according to some of the people closest to the field. The tools that are available now allow technicians to repair many plastic components rather than replacing them. In turn, the manufacturers of these systems say this will help both profitability and cycle time. Kurt Lammon is the President of Polyvance, one of the companies providing solutions in this area. He discussed just some of the many benefits of plastic repair in a recent interview with Collision Repair magazine. Plastic repair, according to Lammon, is the future. He believes the tools and techniques should be readily embraced by every part of the auto claims economy.
“There are advantages for all members of the collision repair ecosystem including consumers, bodyshops, insurers, OEMs, technicians, as well as the planet,” he says. “Polyvance, formerly Urethane Supply Company, was established in 1981 to provide plastic repair and refinishing products for the collision repair industry. During the 1980s, the business pioneered a repair method for polyurethane bumpers. I and my brother Keith took over the company from its founder, Jim Sparks, in 1995. Some of the products we have created since then for bumper repair and refinishing include the FiberFlex universal welding rod, Bumper & Cladding Coat Adhesion Primer, and the Nitro Fuzer nitrogen welding system, introduced in 2006.” June 2017 collision Repair 39
Rodica Matei of Wedge Clamp.
Kurt Lammon, President of Polyvance (left), and some of the team from Precision Marketing, the company’s Canadian distributors: Dan Dominato, Dan Bernier, Brent Wingrove and Tom Racz.
Bryan Robaina of Robaina Direct.
Plastic repair is about more than just bumpers. According to Lammon, the Nitro Fuzer system can be used in a wide range of applications. “Although most think people think of bumpers when it comes to plastic repairs, there are many other non-structural plastic parts that can be fixed, such as washer and overflow bottles, headlight tabs and fenders,” he says. “As the OEMs try to get the cars to be lighter, we’re going to see more plastic panels I believe.” A plastic welder in your arsenal can make quite a difference in keeping the shop economically practical. Shops may have to wait days for new parts to come in, which can disrupt cycle time and increase the number of rental days. “In terms of cycle time, it’s not only beneficial for the consumer but obviously for the bodyshop as well,” says Lammon. “Faster cycle time means that vehicles spend less time in the shop, which expands a business’ capacity to do other work. Because plastic repair can decrease the number of total losses, shops can minimize paying the costs of storage, estimations, and labour that is not reimbursed. It also helps reduce severity and time, as well as looks favourable on a bodyshop’s DRP scorecard.” Dan Dominato, President of Precision Marketing, also weighs in on the importance of plastic repair. Just last year, he and his team became Canadian reps for Polyvance. “Plastic welding has become popular for a number of reasons,” says Dominato. “The first is obviously cycle time. Because of OEM bumpers being on back order, fusion welding plastic components provides a solid repair, and helps with the options of replacing vs. repairing.” Dominato also says that one great reason to use the Polyvance system is the system’s own adaptability. “What they’ve done with their new plastic welders is provide 40 collision Repair collisionrepairmag.com
two systems in one,” he says. “Polyvance fusion welders provide two technologies in one unit: nitrogen gas welding and airless welding, allowing seamless procedures.” Robaina Direct also a solution for improving the reparability of plastic vehicle outer components, the Fusion Nitrogen Plastic Welding System from Eco Repair Systems. The unit can weld with or without nitrogen. The product is included as part of a complete kit for plastic repair. The kit includes the nitrogen welder, a hot tacker, various welding and tacking supplies, a sanding system and a mobile station cart. The kit can also include optional products, such as a chemical weld kit, a plastic shaver with a welding iron and a nitrogen bottle holder. Bryan Robaina, President of Robaina Direct, says there’s a clear need in the industry for plastic repair. “We chose to do this because of the neces-
The NitroWeld 650 in action, available from Wedge Clamp.
The Fusion Nitrogen Plastic Welding System from Betag Innovations, available in Canada through Robaina.
sity of being able to repair bumpers rather than replacing them,” he says. “The cost of replacement is too high, repairing could bring down the value of a repair to a much more acceptable range.” Wedge Clamp Systems has recently released the NitroWeld 650, a heated plastic welder. It is designed to repair plastic products such as headlight tabs, plastic radiators and bumper skins. It is also capable of welding a wide variety of substrates. Rodica Matei, COO of Canadian Operations for Wedge Clamp Systems, discussed the reasoning behind introducing the product in a recent interview with Collision Repair magazine. “We are constantly exploring opportunities to enhance the productivity and efficiency of our distributors and end users in the collision repair segment,” says Matei. “This proven technology is geared to further promote our brand and help our customers work faster, smarter and better.”
June 2017 collision Repair 41
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An artist’s conception from 1947 of autonomous vehicles. Is this version of the future finally just around the corner?
Driving the Future AVs will reshape our world. Will the change be positive?
By Jeff Sanford
he second annual Canadian conference on autonomous vehicles (AVs) kicked off on April 19. The increasing interest in the subject of AVs was clear: a larger venue, bigger name speakers, more attendees, and greater depth. “Last year we focused on AV 101 discussions. What is it? When will it arrive? We were talking about it at a foundational and conceptual level. We were reacting to the technology,” said an organizer. “This year we decided to turn things around. We’re exploring larger questions ... how to realize the vision and how to leverage the technology.” The event, Automated Vehicles 2017: Planning the Next Disruptive Technology, delivered what it promised. Chief Planner for the City of Toronto, Jennifer Keesmaat, led off with some questions. “AVs can be a part of the culture,” she says. Worries that the technology will determine the shape of the culture (rather than humans defining the pattern) are key. “Are
we going to be shaped by the technology? Or will we react? Whether new technologies in our cities allow us to build out the vision of our cities is our choice,” says Keesmaat. “Do you let the infrastructure define the culture, or does the culture arrange the infrastructure?” Keesmaat went on to talk about the dominance of the car and the dangers that a sedentary suburban lifestyle creates. “The effects have been extreme. From a quality of life and health perspective, we designed activity out of our culture. And so we’re seeing obesity becoming one of the critical diseases. This is directly linked to how we move around in our cities,” says Keesmaat. “The distances that were created when the suburbs were laid out meant it was no longer possible to walk to work. Cars take up a lot of space. It’s physics. If everyone has one, we need a terrific amount of space. A choice was made to plan around the car as the organization protocol of our everyday lives.” June 2017 collision Repair 43
Marc Garneau, Canada’s Transport Minister, at the second Canadian conference on autonomous vehicles. Garneau served as the keynote speaker.
Jaye Robinson, Toronto City Councilor and Chair of the Public Works and Infrastructure Committee.
Federal Transport Minister Marc Garneau followed Keesmaat, and related some interesting observations about the introduction of the car to Canada and possible parallels to the current situation with autonomous vehicles. He noted that in 1900 there were only around 1,000 cars here in Canada. “They were high-tech toys for the rich,” says Garneau. By 1913 there were 50,000 of them and governments were bewildered about what to do about them. Some jurisdictions tried to ban cars altogether. In 1908, PEI voted to ban all vehicles from the island. The ban was eventually softened to allow the use of cars on Monday, Wednesday and Friday. Eventually, of course, it was lifted altogether. Governments accepted that vehicles were not a passing fad. Parking spaces had to be created and traffic laws enacted. During the second day there was a focus on sorting the evolving ideas, opinions and predictions that began to fly on the first day at a more fine-grained level. The big themes were stretched out and pinned down. Julia Markovich, Transportation Analyst with the Conference Board of Canada, described the advance of autonomous vehicles (AVs) as a new age. “A system of auto mobility became entrenched in the 20th century. Approaches to government, policy and design were all based around the car. We enforced that system of auto mobility,” said Markovich. “The culture is now moving into a new era.“ The future seen at this conference is “post-car.” This
44 collision Repair collisionrepairmag.com
doesn’t mean the end of cars, but the popular opinion at the conference seems to be that the old model of what constituted a car is quickly being eroded. The new world will be one of electric, self-driving cars that are accessed through a fleet model. “We are actively moving away from that system of mobility that defined the post-war system,” said Markovich. “Active transportation [walking, biking, multi-model transportation] is being joined to AV-enabled infrastructure planning.” Driving the shifts will be the “decline in the number of injuries and fatalities, increased productivity due to freed up time, reduced congestion and “numerous commercial benefits.” Many companies are working to make automated vehicles commercially available by 2020. If there was an overwhelming message to this conference it was, “to ensure a positive driverless future, we need to start planning now.” What can we expect? One big prediction was that the fleets of self-driving vehicles will become one option in a book of available transport needs. In the future, individuals will buy access to multi-model transportation. Bike shares will be joined with access to AVs, trains, light rail systems and subways. As one conference attendee put it, “You need an SUV in the summer for camping. But why then spend nine months driving a big truck around the city for that one time you need it?” In other words, future
cars will be used as they’re needed. “Fit the use to the need,” as the attendee said. Antonio Gomez-Palladio of design and engineering firm DIALOG moderated one of the panels at the event. He has acted as the Chair of the Toronto Society of Architects, as well as the inaugural Chair of the City of Vaughn’s Design Review Panel. “We’re going to figure out how to automate all the pieces of the distribution system,” he said. “And
Last year Robinson pushed for a report on how the City of Toronto could prepare for the arrival and expansion of AV technology. “There are still too many unknowns to present a business case or strategic plan. It still seems early days, and there is not a lot of research out there. But Toronto learned its lesson about overlooking the disruptive effects of new technologies when Uber came into use. That surprised many and overturned
The old model of what constituted a car is quickly being eroded. then we can ask, ‘does Wal-Mart need all that space for the parking lot?’ We’ll rethink our entire city. We need to start to think about all these chunks of land and systems that exist.” Jaye Robinson is the City Councilor for Toronto’s Don Valley West ward and the Chair of the Public Works and Infrastructure Committee. She also sits on the City of Toronto executive committee. She spearheaded Toronto’s first-ever Vision Zero Road Safety Plan, a comprehensive, city-wide strategy to develop and deliver international road safety programs. She sees AVs as a part of the solution.
existing businesses. We weren’t ready for Uber. Council wasn’t proactive. The technology got in front of council. And we don’t want a repeat of that. It was difficult to figure out,” said Robinson. In response, Robinson has staff working on this issue. Toronto is one of the first regions in the world with a dedicated staff member on this issue. “Staff are working on that file. It’s a three-year study for vehicle automation. Congestion and gridlock are the big challenges in this city now. We’ve got to work on that. Mayor John Tory is very passionate about this,” said Robinson.
June 2017 collision Repair 45
Five Pillars of
SucCess Don’t build one by sacrificing the others
By Dave Luehr
have always been in awe of how hard my friends in the collision repair industry work. When I spend time in shops discussing the values they find most important in life, hard work is nearly always on top of the list. After all, many of us were taught by our parents that you can have anything you want in life, if you work hard. Unfortunately, what our parents forgot to teach most of us is that we need to work hard doing the right things. This is especially true for those of us that chose the path of an entrepreneur, business manager or leader. Sadly, many business ventures fail to reach even the tiniest portion of their potential because they don’t work hard on the things that are necessary to build a balanced life and a balanced sustainable business model.
I have found it to be very important when it comes to setting goals, to take a balanced approach in order to spend time on all the things that will bring you real success in the long term as well as in the short term. Several years ago, I was
asked to help a collision repair shop that, during a series of very large hailstorms in the area, was able to double its annual revenue for two consecutive years. They quickly doubled their staff with less than ideal employees; they quit performing the lean processes they had worked so hard on implementing and lost touch with their customers and their insurance partners. Sure they may have made a million bucks, but they literally destroyed over 15 years of development almost overnight! They lost sight of all five pillars and only focused on one.
Financial goal setting is a must for any business. I recommend that goals in this pillar include financial forecasting, understanding financial considerations for expansion plans, building improvements, etc. I like goals in this pillar to include learning the necessary skills to produce and read financial statements. Like in the story of the doomed hail repair shop, it is good to make money because it is the lifeblood of your business, but there are four other pillars to consider as well. June 2017 collision Repair 47
If financial health is lifeblood, then cultural health is the soul! The people in your organization are indeed the most important asset. In your workday, what are you doing to create the kind of culture that will ensure success for the long term? I like to include daily actions and goals that will enrich the company culture through learning new leadership skills, hiring the right people and losing the wrong ones. I also recommend that businesses continually look for talent even when they donâ€™t immediately need it. I hear a lot of people complain that there is a technician shortage, but I only rarely see people taking a proactive approach to find and cultivate the right people over the long term.
Make sure customers and insurance partners love doing business with you.
Financial health is only one part of long-term success. Cultural health and morale are just as important.
48â€ƒ collision Repairâ€‚ collisionrepairmag.com
Make sure customers and insurance partners love doing business with you. Customer sustainability is not only about making happy customers, but also making happy customers for life. You should proactively set goals and take actions that will continually improve your performance and customer loyalty to not only keep them coming back, but raving about your business to their friends and family.
A stable business is one that consistently produces a product or service with a high level of consistency and predictability. Continuous improvement is something that you have to proactively work on. Goals and daily actions need to take place every day to make sure that you are implementing and sustaining processes that will continue to support your financial, cultural, and customer goals. Most of my clients set goals to create a written “playbook” and implement it. Goals and actions can also be made to audit process or procedural standards and provide additional training as needed.
This is something most people don’t want to talk about or deal with until it comes back to bite them. Risk requires you to take action towards making your business safe to work at, with no damage being done to the environment. This is also the pillar that asks you to continually work towards understanding regulations and laws that could put your business in jeopardy. Risk aversion also means that you must train your staff to properly repair vehicles using the manufacturer’s recommended procedures and performing quality control inspections to verify it.
If you can spend a little bit of time identifying what is important to your business by using the five pillars, you can take a balanced approach to being as successful as your imagination will allow. You will be working hard on the right things and not just working hard. You will be building a very solid business foundation indeed.
Dave Luehr is the co-author of The Secrets of America’s Greatest Body Shops, a book written to inspire and provide positive, practical advice to the collision repair industry. He can be reached at email@example.com.
June 2017 collision Repair 49
Thought leaders heading to Canadian Corner at NACE
ACE has combined forces with Automechanika Chicago and this premier combined event is almost upon us. NACE Automechanika 2017 takes place July 26 to 29 at McCormick Place West in Chicago. Collision Repair magazine is the exclusive Canadian media partner for NACE Automechanika 2017. Some of Canada’s most well-known collision executives will be in attendance. You can find out why they believe attending NACE Automechanika is important, right on this page. NACE Automechanika 2017 will feature automotive training programs, show floor
programs and networking opportunities. The Business Outlook Conference will offer information, insight and awareness of the economy, legislation, technology as these issues affect the automotive industry and aftermarket. Other co-located events round out a huge number of offerings at NACE Automechanika Chicago, including the annual MSO Symposium taking place July 26 at the Hyatt Regency McCormick Place. The Advanced Technology & Diagnostic Repair Forum will also be offered and I-CAR training classes also will be part of the agenda for collision repair professionals.
By Jeff Sanford
NACE Automechanika attendees will experience the latest technology with live, interactive demonstrations. More than 600 exhibiting companies and 10,000 attendees are expected. Altogether the combined NACE Automechanika Chicago show is set to be the biggest event in the automotive aftermarket industry this year. In addition to serving as the official Canadian media partner, Collision Repair magazine is proud to serve as a rallying point for Canadians attending the show. Make sure to come visit our booth, #1766, directly opposite I-CAR!
President, CARSTAR North America “I plan to attend NACE Automechanika because it will be one of the premiere global events for our industry. CARSTAR has always been a supporter of the industry as a whole and NACE has always been a key date on our calendar for networking, exploring new technologies and learning and improving our business. Combining with Automechanika is a significant added feature for us.”
COO, CSN COLLISION CENTRES “Attending industry events such as NACE is critical to managing an ever-changing industry. The collision industry is seeing and engaging in so much change and influences, such as vehicle complexity, KPI performance, required technician capability and equipment. The need and desire to expose oneself to new and improved ideas is extremely important. Continuous improvement has taken on a whole new meaning and requirement.”
President, Fix Auto World “As a global collision repair network now expanding into the broader spectrum of the automotive aftermarket industry, Fix Auto is looking forward to attending NACE Automechanika Chicago. Our industry’s landscape is evolving at a rapid pace, with more emphasis being put on training and technical innovation, and it is more important than ever to remain agile and adaptable to change. Fix Auto understands the importance of advocating for the industry, in North America and the world over, and we look forward to joining the automotive aftermarket community for this event.” June 2017 collision Repair 51
Britannia! UK repairers are stepping up with growth and innovation By Barett Poley
he UK collision repair sector has its share of challenges, but according to Mark Hadaway, editor of UK-based Bodyshop magazine, this only means increased opportunities for progressive and innovative businesses. The UK’s industry shares a number of similarities with Canada’s, and trends there may well find their way here. The International Bodyshop Industry Symposium (IBIS) draws together key influencers and thought leaders from across the globe to discuss trends impacting the collision repair industry. Collision Repair magazine is the exclusive Canadian Media Partner for the IBIS. According to Hadaway, things could be going more smoothly in the United Kingdom. That’s not necessarily a bad thing, if a business knows how to roll
with the punches. “The approvals led UK collision repair sector is never without its challenges or political persuasions,” writes Hadaway. “It’s a claims system which continues to be disjointed, involves many vested interests and where trust is a major issue. But whilst some continue on a path of conflict and mistrust, the more progressive businesses take a proactive stance and create solutions founded on innovative thinking, partnerships and trust. The result of this is new business models, improved efficiencies and greater customer engagement.” Consolidation is a major force in the UK, prompting some repairers to carve out a defined niche. “Consolidation has [been] and continues to be one of the key themes within the UK collision repair sector at present with the big getting bigger and all indications
that this will continue,” writes Hadaway. “What this has also served to encourage is the segmentation of the market, where businesses have been prompted to choose their ‘niche’ within the sector,” he says.
June 2017 collision Repair 53
FACTS AT A GLANCE
The information in this report was submitted to IBIS by Mark Hadaway, editor of the UK’s Bodyshop magazine.
“This has also been heavily influenced by the increasing role of advanced vehicle technology.” The UK’s collision repair market currently sees about 70 percent of accident repair funded by insurers. However, consumer pay appears to be on the rise in the country, due to rising premiums. In turn, Hadaway
Collision Repair Facilities
Number of Insurers:
Average Labour Rate
short. Rising insurance premiums, combined with high policy excesses have also served to create a market outside of the traditional claims environment. Instead, a consumer driven market has emerged where drivers seek repairs themselves rather than claim via their insurer.” The UK is experiencing a significant
Above: The interior of one of the facilities belonging to Balgores Motor Group, one of the UK’s largest independent repair chains.
those that do it and many claim you ‘cannot afford not to.’” The outlook isn’t totally bleak, though. As Hadaway points out, governmental programs are starting to turn the tide back towards young workers. “To address the issue, government, training bodies and colleges are work-
Consolidation is a major force in the UK, prompting some repairers to carve out a defined niche. notes that the rise in premiums is blamed on widespread insurance fraud. “A continued rise in insurance premiums sees much of the blame placed at the door of the UK’s systemic insurance fraud culture,” writes Hadaway, “To combat this insurers have allied with government to decree a clampdown on rogue accident management companies. The impact of this is yet to be realised but previous attempts to curtail the claims culture have fallen
lull in skilled workers and tradespeople, especially young tradespeople. Hadaway writes: “Continued lack of new blood entering the market is one of the issues faced by the industry. Apprentice numbers are low and typically those who do enter often opt out after the first year or two. It’s a Catch-22 situation because time, money and energy needs to be invested in apprentices, all of which are scarce resources, however there are certainly
54 collision Repair collisionrepairmag.com
ing hard to make apprenticeships more accessible and promoting the value of such young starters,” says Hadaway. “A major revelation within the sector has been the advent of the AutoRaise/ REAL Experience initiative aimed at attracting and highlighting the career prospects for young people.” According to Hadaway, in its inaugural year, the program has already attracted 100 new potential collision repairers to the industry.
MuddyWaters Seeing through the murk on shop certification
By Andrew Shepherd
cKinley Morganfield, famously known as Muddy Waters, was one of the blues giants, often called the “father of Chicago blues.” But “muddy waters” is also a great description of the shop certification options facing Canadian collision repairers: things may get worse before they get better.
• Most niche OEMs (e.g. Mercedes, BMW) currently operate their own certified collision repair networks, with very specific equipment and training requirements, all reinforced by warranty-based restrictions on repair and maintenance. • A number of mass-market OEMs (Honda, Toyota,
• T he U S marke tpl a c e a ls o supp or t s Ve r i f a c t s Automotive, NSF International and, without doubt, other players entering the shop certification terrain.
Given that the stated rational of OEM certified repair network programs lies in customer retention priorities, we will almost certainly see more efforts in this sphere. But there are signals that the mainstream OEMs are not satisfied with the increasing variety of verification options—at some point the multiplication of standards produce no standard at all. This position is likely to be supported by repairers who must deal with the proliferation of shop certification
There are signals that the mainstream OEMs are not satisfied with the increasing variety of verification options.
VW) are driving their certified collision repair networks with internal control—that is, signing agreements directly with shops—but often with external audit partners. • Other mass-market OEMs (Nissan, Ford, FCA,) are contracting out their repair network operation to an American company, known as Assured Performance Network in the US and Certified Collision Care in Canada. • CARSTAR, Fix Auto, CSN, Speedy, Assured and Boyd have voiced their support for AIA Canada’s Canadian Collision Industry Accreditation Program (CCIAP), which is tied to the ARA’s Certified Collision Repair (CCR) Program in British Columbia. • The CCIAP/CCR option has also been supported by Economical Insurance, with some signals that other insurers may follow suit.
options by paying twice, three times or more for essentially the same service. Two positive factors stand out in this muddy pool. First, very few of the mainstream OEM program standards identify specific equipment brands— those that do will be pressed on all fronts to convert these to performance standards. And second, I-CAR training recognition remains the core identifier of skills competence, again avoiding a proliferation of standards and certification requirements. If you are, like most Canadian repairers, singing the blues about shop certification, it may be wise to focus on the short-term ROI of certification and hope that the waters clear in the longer-term. Andrew Shepherd is the Executive Director of I-CAR Canada, a non-profit organization that provides collision repair training and ongoing education. He can be reached via e-mail at firstname.lastname@example.org
June 2017 collision Repair 55
Report on Training
Pro Spot announces new ‘Made for Canada’ I-CAR training specials
ro Spot International has announced two new I-CAR Canada Training Promotions. “Our 2016 I-CAR Education promotions were so well received by the industry that we wanted to continue to contribute to tech education,” says Pro Spot’s Canadian Director of Sales and Marketing, Art Ewing. “We firmly believe that technician education is one of the most important aspects of the Canadian collision industry as we move forward. More and more complex materials are being used in the automotive field and we want to help ensure that our techs are ready for these challenges.” Pro Spot is reinstating its popular PR-5 Riveter Training Promotion as well as introducing SP Pulse MIG I-CAR Training for MIG Brazing. With the purchase of
either the Pro Spot SP-2 or SP-5 Pulse MIG welder, Pro Spot will pay for two techs to attend the I-CAR BRZ 02 MIG Brazing Course. Canadian collision repair shops who purchase the new PR-5 Rivet Gun from an authorized Pro Spot Canadian distributor will receive two I-CAR Canada training classes for the I-CAR RVT01 Rivet Bonding course (a $980 value) included with the price of the Rivet Gun. Pro Spot is also introducing a new SP Pulse MIG I-CAR Training for Mig Brazing. With the purchase of either the Pro Spot SP-2 or SP-5 Pulse MIG welder, Pro Spot will pay for two techs to attend the I-CAR BRZ 02 MIG Brazing Course.
Pro Spot’s PR-5 Rivet Gun
Discount Car and Truck Rentals and CARSTAR educate brokers
Collin Welsh of CARSTAR conducting one of the broker education classes.
Discount Car and Truck Rentals and CARSTAR have recently concluded joint training sessions for members of the Insurance Brokers of Toronto Region (IBTR). The events were part of the RIBO Lunch and Learn series. The overall focus of the training was Auto Insurance Claims: Rental and Repair. Various courses were presented to the attending brokers. “Keys to Keys” focuses on the CARSTAR repair process, filling brokers in on what they need to know about how CARSTAR handles customers and repair orders, including the steps repairers must take to ensure the claims experience is a positive one for customers. “Total Losses” dug into the reasons for the growing number of total losses in today’s marketplace by providing industry statistics and looking at the key reasons vehicles are deemed a total loss by 56 collision Repair collisionrepairmag.com
insurance carriers. The session also included information on how brokers can negotiate and possibly overcome the total loss, and general background on how to help clients through this process. Collin Welsh is a Regional Development Manager with CARSTAR. He facilitated the two CARSTAR-focused courses. Discount Car and Truck Rental’s course, “Insurance Replacement Rental Process” focused on giving brokers an in-depth perspective on the rental process from the start of the claim until the insured is back in their vehicle. Courtney Thompson Account Coordinator, Insurance Sales facilitated the course. “The topics we covered include our policies and underwriting practices, as well as common questions and scenarios a policyholder may face during the rental process,” says Thompson. “We’re focused on maintaining relationships with our brokers locally, as well as across Ontario and Canada.” The topics covered include: · The CARSTAR repair process · Ensuring the customer claims experience is positive · Reasons for the growing number of total losses · Why vehicles are deemed total losses by insurance carriers · How brokers can negotiate total loss · In-depth explanation of the rental process · Discount Car and Truck Rentals’ policies · Discount Car and Truck Rentals’ underwriting practices · Maintaining relationships with brokers · Providing brokers with more insight into the repair process
Report on Training
Chief introduces comprehensive joining technologies course Chief University has introduced what it calls an “allencompassing” class focused on joining technologies. The one-day Chief University Joining Technologies class is designed to provide estimators and appraisers a thorough understanding of the current welding, riveting and adhesive bonding and removal technologies being used in today’s shops. “We are constantly updating the training curriculum at Chief University to keep pace with the OEM changes in vehicle design, technology and materials,” says Ken Boylan, Global Training Manager. “This class is designed for all skill levels, from first-timers to experienced appraisers and estimators, and provides the most hands-on classroom environment we have ever delivered.” The Joining Technologies The exercises covered include: course is a combination of · Performing steel and aluminum welding and brazing, classroom and hands-on experiences in several new using Chief ’s virtual welder joining disciplines · Installing and removing self-piercing rivets and flow- The new Chief University form screws Joining Technologies class is · Installing blind rivets approved for I-CAR credit · Performing structural weld bonding and debonding hours through the I-CAR · Performing spot welds with and without adhesive Industry Training Alliance · A demonstration of carbon fibre repair program. Cost for the eighthour class is $395 USD.
Chief University’s Joining Technologies covers welding, brazing, riveting, weld bonding and more.
Left: Jeff Peevy, President of AMi.
Online Enterprise training now available through AMi The Automotive Management Institute (AMi) has introduced a new online course that delves into the proper use of Enterprise Rent-A-Car’s ARMS Automotive Suite. The new course was developed by Enterprise specifically for collision repair specialists to teach them how to use the ARMS program or to improve their functional knowledge of it. The Enterprise brand has more than 500 branches throughout Canada.
“The new course is a result of AMi’s on-going collaboration commitment to bring relevant administrative training to the industry,” said AMi President Jeff Peevy. “We appreciate Enterprise for its support and interest in working closely with us.” The new online course offers one AMi credit hour towards the achievement of the institute’s Customer Service Certificate, and professional designations; Accredited Automotive Office Manager (AAOM), Accredited Automotive Manager (AAM), Accredited Master Automotive Manager (AMAM) and soon to be released, Accredited CollisionRepair Estimator (ACE) and Accredited Master CollisionRepair Estimator (AMCE). Enterprise created the Automated Rental Management System (ARMS) in 1994 to help simplify the process of managing replacement rental cars for policyholders. The ARMS digital management platform enables repair centres to book rental reservations and send vehicle status updates to insurance partners and customers. In addition, repair centres can track, measure and forecast labour needs, and generate monthly reports through ARMS. The ARMS digital management platform enables repair centres to book rental reservations and send vehicle status updates to insurance partners and customers. In addition, repair centres can track, measure and forecast labour needs, and generate monthly reports through ARMS. June 2017 collision Repair 57
Aboard! Fix Auto’s global network heads to the high seas to celebrate its 25th anniversary
hat better place could there be than the open ocean for Fix Auto World’s first truly global conference? The conference started in Miami with a reception and an opening address by Fix Auto World President Steve Leal and other VIP guests, but it wasn’t long before the franchise partners and special guests were boarding the Norwegian Getaway for a week at sea. Not only was this the first conference for the global organization Fix Auto has grown into, it was also a celebration of the network’s 25th anniversary. “This was the first event of its kind for our global family and a true testament to the spirit of our network as we celebrate 25 years of in-
novation and history,” says Leal of the conference that drew over 300 representatives from Canada, the US, the UK, China, France Fix Auto World President Steve Leal (right) delivers the opening address in Miami, with Carl Brabander, Fix Auto World VP of and South Africa. David Lingham is Head Marketing (centre) and Frank Liu, President of Fix Auto China. of Business for the Fix Auto World organization. Lingham is no strang- under the Fix Auto brand!” er to large international events. A regular The conference, of course, featured preattendee and moderator at the Internation- sentations and discussions of best practices, al Bodyshop Industry Symposium (IBIS), opportunities and the future of the Fix Auto Lingham was impressed by the size and network, both globally and in individual scope of this year’s conference, saying markets. However, there was still plenty of “What an inspiration to be part of such time for fun and networking events, with an unprecedented gathering of collision the Norwegian Getaway stopping at ports repairers from around the world, united of call in Honduras, Belize and Mexico.
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A massive beach party capped the second-to-last day of the conference. Representatives of Fix Auto markets from around the world were in attendance.
The team from Fix Auto China. China is the newest market for Fix Auto, but already the network has a strong presence in the country.
The team from Fix Auto UK. The conference drew attendees from six countries.
Canadian Fix Auto franchisees and partners during the numerous meals served aboard the Norwegian Getaway. Business was the order of the day, but there was time set aside for fun and networking as well.
Fix Auto World has grown incredibly from its beginnings as a regional collision network in Quebec to the position it occupies today as one of the global industry’s most significant players. The company’s roots, though, are still with the shop owners that have taken the brand to new heights. “This was a celebration of the entrepreneurial spirit behind Fix Auto’s global collision repair brand,” says Carl Brabander, Vice President of Marketing for Fix Auto World. In other words, a celebration of the company’s backbone: the shop owners and staff on the front-lines of this global organization. For more information, please visit fixauto.com.
Darryl O’Keefe, General Manager of Fix Auto Ontario, Eric Leveille of UAP and Jean Charles Dupuis, COO of Fix Auto Canada. June 2017 collision Repair 63
The Scanning Gap OEMs say scan, but not all insurers are onboard By Jeff Sanford
A panel discussion on scanning and calibration at CCIF Toronto included representatives from OEMs, insurance, software and the repair industry. Asked about the potential consequences of not performing scans, one OEM representatives remarked that they were “Possible injury or even death.” Nevertheless, we have received reports that some insurers still refuse to pay for needed scans.
s there a topic more pressing in the collision repair industry than that of pre- and post-scanning? Numerous OEMs have issued position statements insisting that a safe repair must include these scans, as well as calibrations. The question remains: who pays? A reader of Collision Repair magazine recently reached out to us regarding an online article published by our US-based content partner, Repairer Driven News. The article details how an appraiser in the US refused to pay for pre-scans on a 2016 Ram bedside replacement, despite the fact that FCA has issued a position statement calling such scans mandatory. The piece encouraged John Scetta of Performance Collision & Restyling to write to us, noting that this is happening in Canada as well. He noted further that he was worried about the eventual outcome of this tension between prescription and practice. “This is normal practice here as well,” he writes. “We just had an Audi in that they refused to pay us for pre-scan, and not until we did the operation for free did any of us know about the 18 hidden codes that were
stored. This is the reality. Where does the buck stop on negligence? If this continues, someone is going to die. This is no different than a structural engineer signing off on drawings and the builder deciding to use inferior materials to save a dollar.” Rising Liability Scetta is one of many repairers worried about the rising liability around scanning in the new world of complex vehicles. At the first CCIF meeting of 2017, the opening panel discussion was on scanning and similar concerns were presented. One of the panelists noted that the consequences of allowing a vehicle to leave the shop without properly calibrating various systems could be “Serious injury, or worse.” Kelly Roberts is the Business Development Manager of Fix Auto North Bay. His store has been performing scans and recalibrations on every collision damaged vehicle assignment for a couple of years now, whether it’s been an insurance claim or customer pay repair, paid or not, position statement or not. “Once you understand the level of
John Scetta of Performance Collision & Restyling.
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Ken Friesen of Concours Collision Centres.
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technology in all modern vehicles now, it should concern you immediately. In the past shops only scanned the vehicle if there was a dash light on. Things are totally different today,” says Roberts. Roberts says the crew in his shop became deeply concerned as they witnessed more technology in the form of sensors and cameras on vehicles over the past decade. “We became very concerned. You’ve got advanced driver assist systems like automatic braking now, and so you can’t ignore this stuff. You’ve got to make 100 percent sure these cars are safe to go back out on the road, every time,” says Roberts. At first the company absorbed the bulk of the cost, as some insurance companies were reluctant to pay for it. They still are in some cases, where the OEM language is not blunt enough it seems. Roberts says there has also been assistance from Fix Auto corporate representatives in offsetting some of the cost, developing language and having supportive conversations at higher levels. “At first, we got a lot of push back,” says Roberts. “The first part is learning, then accepting, that it’s a necessary reality. I think a lot of people have got to the point where they understand and realize this is an issue.
They can’t say they don’t know. They can’t claim ignorance anymore. I compliment those who have come to understand this, but there is still no public pressure right now. And I say every shop must do this, even before there is public pressure. That’s when the potential liabilities go up. If it’s been in a collision, or even had minor cosmetic repairs, we need to know what is required, every time. It’s our job.” Ken Friesen, owner of Alberta’s Concours Collision Centres, began scanning some of the vehicles in his shops out of concerns for safety. “I’ve been watching and checking-in on this debate over the years. I’m not scanning every car. [But] we’re getting to the point where we will have to,” says Friesen. “If you have monitoring devices in the mirror and you take the mirror off, you have to scan. If you have a bumper with equipment behind it and we think there’s no damage then we may just do a post-scan. But if there is any damages to a monitoring device you will need to do a pre- and post-scan and reset the systems.” The need to do these scans has been building since about 2008, says Friesen. “It’s more than your reputation. If something happens, it’s on you. If it goes to court and it comes out that the car required a scan and that
wasn’t done, you are liable. You can’t say the insurance company wasn’t going to pay for the scan. The liability is on the shop to make sure the car was repaired correctly. Scanning guarantees that you have reset the modules and that the computer is clear,” he says. “This is not a money grab. It’s about the new amount of technology and using your skills and training to repair vehicles safely. This is going to become more of an issue as we get more cars with more complexity. We still deal with a lot of older models, but things like lane departure warnings, adaptive cruise control and auto braking are becoming almost standard.” Document Everything Friesen makes a point of documenting everything they do in terms of scanning as a way of containing their liability. “Insurers will have to figure out how to account for this stuff,” he says. “But with all of the safety features on cars there will be fewer accidents. The average cost of repair may go up, but the frequency will go down, so it will balance out. It’s also been the case that sometimes damages claimed for an accident can be found through a scan to have occurred long before, giving the insurance company grounds to fight
fraudulent claims. So there are benefits here for the insurance companies as well.” From the insurance side, Joe Carvalho of Economical Insurance notes that it’s company policy to cover all necessary scans. “If such a vehicle sustains damage, it’s imperative that the vehicle and its safety features be put back to pre-loss condition,” says Carvalho. “To ensure this happens, a pre-scan must be included in the assessment of damage and a post-scan be done after the repair to ensure nothing was missed. Post-repair calibrations are critical to ensure full functionality of the features according to OEM specifications. At Economical, we are proud to be among the first—if not the first—åinsurance company in Canada to take the innovative step to recognize this as an essential component of a repair and second to incorporate it into our estimating standards. We are going one step further to mandate pre- and post-scans and post-repair calibrations be done by all our certified auto repair vendors across Canada, regardless of the make, model or year of the damaged vehicle.” Economical’s approach is an enlightened one on an outstanding liability issue in the industry. The question now: Will the rest of the industry follow suit?
Joe Carvalho of Economical Insurance.
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Collide. Connect. Repair Fully connected claims are just a few years away By Sean Carey
first presented “connected cars – connected claims” in 2014, and suggested that our ecosystem (claims and collision repair) was in for a significant change that would occur much sooner than 2025. The first question I’m asked when discussing this is, “when will all of this start to take effect?” The answer is straightforward: right now. The connected car is here and
the repairability of their vehicles and the impact a poor repair can have on a brand’s reputation. When you add in the fact that OEM’s recommended repair procedures are not being followed 100 percent of the time, and that non-OEM parts are being fitted to relatively new vehicles, it’s clear that they must step up and take a more active role in the collision segment.
When will all of this start to take effect? The answer is straightforward: right now. has been for some time, be it a simple connection to satellite radio or real time navigation and traffic alerts. The follow up question to my answer is typically, “but won’t it take 20 or 30 years for all of this to have an impact on the claims and collision repair segment?” I tell those who ask that it is in the journey to autonomous vehicles (AVs) that we will see the impact, not the destination. Let me explain this further.
OEMs are beginning to respond to market forces, and this is at the crux of how new technology will drive the market. All vehicle manufacturers are deeply concerned with
In the past OEMs have played a cursory role in the industry, providing technical support that had been limited or difficult/ costly to access. Occasionally an OEM would bring a “certified” program to market, but by and large the involvement in the industry was very limited. This is changing. The most recent noticeable and much needed OEM involvement in the segment has been the issuance of position statements on pre- and post-repair scans. This is yet another example of the OEMs being involved at a deeper level in the segment. These early indicators are a prelude to what’s to follow as the brand reputation of the vehicle manufacturer finally makes its way into the claims and collision repair market. June 2017 collision Repair 69
The most significant outcome of OEMs return to the market brings us back to our journey with the connected vehicle. The connected vehicle provides OEMs with the opportunity, should they decide to take it, to enter the First Notice of Loss (FNOL) space. What was once the domain of the insurer is now potentially available to the OEMs. There are some clear advantages. The data available from the vehicle is based on numbers and facts, not subjective human experience, and it provides information in real time, rather than when the insured or claimant decides to call it in. We in the automotive claims economy tend to think of the process in sequential fashion. Well, in the world of connected cars all that sequential process might be concurrent and instant. What if the car itself made the claim? In the accompanying diagram, we can see a scenario where at the point of impact the vehicle(s) involved is able to send a package of data about the event to a data centre. From there the relevant information is parceled
Sean Carey predicts that the OEMs will become more involved in many stages of the claims process.
out and distributed, making the claims and repair process more seamless and efficient. What does that entail? First and foremost, emergency services could be contacted, especially in the event that injuries are involved. As that is happening, the vehicle’s details hit an insurance database to see if coverage is confirmed. While that’s taking place, the vehicle, using all of its sensors and data management systems, determines
the point of impact and parts that are no longer in tolerance. It then compiles a parts list which bounces off an estimate database (not the estimating databases as we know them today) and creates a predictive estimate based on OEM processes and procedures. Once that has been completed, the repair requirements are sent to a database that identifies the best available shop to conduct the repairs in the timeliest fashion.
We may soon see vehicles initiating the claim themselves, thanks to increasing computerization and connectivity.
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The data is sent to the shop, along with the contextual information on repair procedures, the build data for that exact VIN and the parts list. By this time, less than two minutes have passed and the rental car agency has already been notified of the need for a rental. The customer is contacted and informed that the vehicle is booked in for repair at the certified shop and told the rental will be ready for them. The message is also displayed on the vehicle’s display, assuming it’s operable.
Many of the companies working on this are not immediately recognized today as “active” in the claims and collision repair space but they are giants in the IT and data business, and the claim process is very attractive to them. So, when will we see these component parts come together? 2020 is my response. I should say that has been my response up to now. I’m beginning to waver on that these days. I now believe it might be even sooner. I believe we are seeing the beginnings of a new world.
The responses to this are usually, “that’s never going to happen,” or “that will take 10 years to come into fruition.” But every component is happening today. Each component is already in place and in action. The only thing holding it up is that, so far as I’m aware, no single workflow is in place. But I know of several companies who are collaborating and working hard to bring this seamless claims and repair process to market.
I always say “I get to live in rarified air” insomuch as I’m fortunate enough to meet with senior executives from across our industry on a regular basis, and whereas this type of future workflow might seem a long way off I can absolutely confirm that these conversations are taking place and that the “connected car and connected claim” is front of mind. You might be surprised to find it happening much sooner than you would have ever imagined.
Speeding up First Notice of Loss (FNOL) benefits OEMs, insurers and repairers.
Sean Carey, President of SCG Management Consultants in Chicago Illinois, has over 30 years experience as a consultant in the automotive claims and collision repair segments. Carey consults with a broad array of industry constituents at the highest levels, from OEMs to insurers and supply chain vendors, on strategic positioning and market initiatives effecting today and tomorrow’s landscape. Carey has dedicated much of the past few years to learning about and advising his clients on the impact autonomous vehicles will have on the claims and repair workflow, and how it will affect every segment.
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WIN members at the conclusion of this year’s Scholarship Walk. Every year, the WIN Conference includes this fundraising event to provide scholarships for more women to attend the conference and receive mentoring.
Record Breaking WIN’s 2017 conference brings together more professionals than ever By Josh White
ince 2006, the Women’s Industry Network (WIN) has played an active role in involving women in the collision repair industry. Still growing, the not-forprofit organization continues to attract women to the industry and recognize women for their work within it. WIN’s mission is not just to allow women to network and learn the skills necessary to work in collision repair, but thrive. The 2017 conference took place in Denver, featuring experts from a variety of areas presenting on leadership skills, business ethics and more. While speakers are a large portion of the conference, it is much more than just presentations. In keeping with a longstanding WIN tradition, this year included the Scholarship Walk fundraiser, networking sessions and a scavenger hunt. This year’s conference also saw three new names added to the Most Influential Women list: Cristina Fronzaglia-Murray of PPG, Renee Ricciotti of 3M Automotive Aftermarket and Elizabeth Stein of Assured Performance Network. WIN Chair Petra Schroeder was very enthusiastic about the success of this year’s conference.
“The wide variety of topics chosen this year were really hitting the marks with the members,” she said. Using the feedback of members, the conferences are getting more rewarding every year, and it shows. This year’s conference had record attendance with both men and women joining the event. “For the women of the industry who are often working by yourself, WIN is enforcing and embracing the fact that you are not alone,” Schroeder said. “It brings home the point that there are hundreds, thousands of other women in the industry to support each other.” Through over a decade of conferences, Schroeder emphasizes how WIN has “raised awareness of the different skill sets at a school level” and the importance of considering trade schools to start a career. With over 500 members and still growing, now is the time for women to join WIN for support, education, networking and overall enrichment. The conference has come and gone for 2017, but Schroeder says WIN will continue to grow supportive networks throughout the year. For more information on WIN, please visit the organization’s website at womensindustrynetwork.com.
There are hundreds, thousands of other women in the industry to support each other.
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Leal of Fix Auto, Orser of 3M and Vasto of Vast-Auto join AIA Canada Board of Directors All three will serve until the Spring 2020 Annual General Meeting. In addition, AIA Director Jason Best of Spectra Premium Industries, was elected to the role of AIA Second Vice Chairman. Each member of the current Executive Committee will now take on a new role:. AIA Canada’s Board of Directors Executive Committee
• Dave Fifield of Wakefield Canada was elected to Chairman of the AIA Board AIA has elected three new directors: Steve Leal of Fix Auto World, Rick Orser of 3M and Tony Del Vasto of VastAuto Distribution.
The Automotive Industries Association (AIA) of Canada has announced the election of three new directors to its board: Steve Leal of Fix Auto World, Rick Orser of 3M and Tony Del Vasto of Vast-Auto Distribution. The results of the election, along with other changes to the AIA Board, were announced at the 75th Annual General Meeting held in Mississauga, Ontario. Leal is the President and CEO of Fix Auto World. Under his leadership, Fix Auto World has aligned global operations around lean, customer-driven processes that the company says deliver greater efficiencies for operators and partners. Orser is the General Manager, Automotive Aftermarket Division for 3M Canada Company and currently represents 3M as a member of the AIA Collision Council. He brings with him 30 years of business management experience. Del Vasto has filled the role of Vice President and General Manager, Ontario for Vast Auto Distribution since 2009 and has been instrumental in developing the Ontario business while contributing to the overall strategy.
• Brent Hesje of Fountain Tire was elected to First Vice Chairman • Doug Reevey of Autotec was elected to Immediate Past Chairman The remaining AIA Board members and terms that were voted on at the last Annual General Meeting will remain in place. Directors at Large
• Rick Orser, 3M Canada Company • Tony Del Vasto, Vast-Auto Distribution • Steve Leal, Fix Auto World • Susan Hitchon, Schrader Performance Sensors • Simon Weller, NAPA Canada • Annie Hotte, Uni-Sélect • Eric Knogler, Sutherland Automotive • Paula Sayers, Canadian Tire Corporation • Stuart Suls, Mr. Lube Canada For more information, please visit aiacanada.com.
KPMG predicts sharp dive in OEM collision parts sales OEMs may see a substantial reduction in their collision parts revenues as a result of fully self-driving cars, according to a new report from the KPMG US Manufacturing Institute Automotive Center. The report indicates that OEM parts sales may fall by as much as 48 percent. The KPMG report also projects that OEM collision repair revenue, which was $5.6 billion in 2015, could drop to $2.7 billion by 2030 and dwindle to $1.4 billion by 2040. The new report, Will autonomous vehicles put the brakes on the collision parts business?, notes that despite accounting for less than 3 percent of OEM revenue, collision parts make up an average of 10 to 20 percent
of operating profits. Based on the revenue impact, OEMs can expect a 4 to 9 percent reduction in operating profits by 2030 and a reduction of 13 percent by 2040. “OEMs have already begun to deal with the design and engineering challenges related to autonomous vehicles,” said Gary Silberg, KPMG’s US Automotive leader. “And while their focus may be on bringing the first self-driving cars to market, OEMs need to contend with the decline in demand for collision parts that these safer, autonomous vehicles are expected to bring by reducing driver error and lowering accident rates.” Most OEMs expect to be selling fully self-driving vehicles between 2020 and
2025, if not sooner. As advanced driver assistance systems become more prevalent in vehicles, KPMG projects crash rates could decline by more than 60 percent by 2030 and 80 percent by 2040, which in turn could result in a 50 percent decline in the overall collision repair market within the next 15 years. “OEMs need to implement aggressive plans to right-size collision parts cost structures and identify new revenue streams,” said Tom Mayor, Head of Strategy for KPMG’s Industrial Manufacturing practice. “This will keep their shareholders and dealer partners whole, while maximizing showroom floor support for ADAS and autonomy.”
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Alex Humphries of Finixa on how constraints drive innovation
Alex Humphries and Jason Chusing of Finixa. Humphries travels the world on behalf of the company, which gives him a unique perspective on how shop operations differ from country to country.
According to Alex Humphries, Sales Manager at Finixa – Chemicar, there are some major differences between how the collision repair industry functions in Canada and how it works in Europe. Humphries’ work takes him to many different countries around the world and gives him a chance to regularly meet with repair professionals. In a recent interview with Collision Repair magazine, Humphries gave us his
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insights into the similarities, the differences and his views on training and technology. Humphries notes that the industry as a whole in North America may lag behind Europe, but that the top performers aren’t behind at all. “I think it’s a fallacy to say that Canada and the US are 10 years behind Europe, maybe three to four years ago, but not now. If you took the average of all the bodyshops in Canada and looked at their processes and how they do things then yes, they’re behind the average in Europe,” says Humphries. “But if you took the top 15 percent of those bodyshops, the ones who are really on the money, then they’re not behind at all. It’s about how we can get the rest to fall in line with that top 15 percent.” Humphries outlines how European shops have innovated and why it became a necessity. “I absolutely believe that Europe has improved in its collision repair industry. We’ve really embraced the process, and it’s all about constraints,” he says. “When constraints are put on a collision repair business, they have to go outside of their comfort zone. From there, they have to find new ways of doing things, discovering things, embracing new technology and new ways of thinking. It’s happening in Canada as well. Some shops are falling by the wayside, but those who are embracing innovation are succeeding to a massive degree.” Humphries credits innovation and a willingness to do things differently as key elements in Finixa’s success. “Finixa is about innovation and forward movement,” says Humphries. “You may not hear this much, but I think one of the most important decisions a company can make is to decide what not to invest in. I’ve witnessed bodyshop owners throwing huge amounts of investment into technology just to realise afterwards it has all been trying to fit square pegs in round holes, and learning that not one single investment in a piece of technology is going to change their whole business. We don’t manufacture paints. The moment we manufacture paints, we lose relationships and product development contracts with the paint brands, because we’ve become a threat. Because we don’t sell paint, the paint companies can pull us in before their products go to market, and ask us to develop non-paint goods to help sell the product.” Efficiency in terms of both margins and sheer production are both very important in the UK, according to Humphries. “National studies in the UK show the average insurance company invoice is about £1,200 pounds per repair, and just over 16 hours labour,” says Humphries. That’s about $2,130 CAD. “The average net profit, however, is less than 3 percent. Every square inch of the shop has to be productive space. About 10 years ago, the average larger size shop in the UK was between 20,000 and 40,000 sq. ft., and doing about 40 to 50 cars a week. Now there are shops in the UK that are 4,000 sq. ft. or less, and they’re knocking out over 60 cars a week with 50 percent less operatives. That‘s how efficient the industry has been forced to become. Which goes to show, that if you put a bodyshop under constraint, if they invest in the right technology, people and systems/processes and they really can over achieve in an ever increasingly difficult market!”—by Barett Poley
Waterdown Collision raises funds for CF with Dante’s Puddle Jumpers
Well over 200 volunteers helped to make this year’s charity car wash a runaway success.
Staff and volunteers at Waterdown Collision have every reason to be proud. Working together, they managed to wash over 125 cars per hour for four hours on May 13, raising over $32,000 during the annual fundraising event for Dante’s Puddle Jumpers Charity Car Wash. The fundraiser is in support of cystic fibrosis research. Waterdown Collision is owned and operated by Max DiFelice. Cystic fibrosis is a cause that hits close to home for his family. Dante DiFelice is a 14-year-old living with cystic fibrosis (CF) and is an active supporter of Cystic Fibrosis Canada. This is the sixth annual event for Dante’s Puddle Jumpers. This may be the most successful event to date. Last year the event raised $23,490 in just four hours. This is certainly a substantial donation, but this year’s total of over $32,000 eclipses it. However, even more impressive is
Face painting, refreshments and onsite fire trucks helped to draw a crowd to Waterdown Collision.
the level of community involvement. “Every year, Wendy, Nadia, Tracey, Tammy and Patricia from our office step up to spearhead this event, and we’re extremely grateful,” says Di Felice. “We’re also very grateful to the members of the community who volunteered their time. This year, we had a total of 255 volunteers helping out, the
police on-site to help direct traffic, volunteer paramedics on location and the local fire department brought some trucks for safety and for the kids.” Di Felice also notes that businesses, both local and national, stepped up to help make Dante’s Puddle Jumpers a success. “Local newspapers donated ad space to help us get the word out, and CHCH TV and a lot of the local radio stations ran promotions as well,” he says. “We had food donated by Enterprise Rent-A-Car, drinks donated by Discount Car and Truck Rentals and members of the Optimist and Rotary Clubs helped by volunteering as valet drivers.” For more information on Dante’s Puddle Jumpers or to donate, please visit dantespuddlejumpers.com. For more information on Waterdown Collision, please visit waterdowncollision.com.
AIA Canada announces 2017 award recipients AIA Canada has announced the 2017 for parts manufacturers to distribute recipients of the AIA Distinguished automotive, collision, heavy duty Service Award and the Young Leader and industrial replacement parts to of the Year Award. remote end users since 1959. This year’s Distinguished Service Maslack Supply has grown to Award goes to John Maslack, 12 locations and a staff of over 200 founder and President of Maslack people. In addition to these locations, Supply. Jason Best, Executive Vice Maslack Supply has recently opened President, Aftermarket of Spectra a new state-of-the-art training centre Premium Industries has been named in Sudbury, Ontario to accommodate as the 2017 Young Leader of the its customers. Year. Both awards will be presented Jason Best, recipient of the John Maslack (left), founder of Maslack Supply immediately following AIA’s 75th and Jason Best, VP, Aftermarket of Sprectra Premium Industries (right). 2017 Young Leader of the Year, is Annual General Meeting at the well-known and respected for his Volunteer Recognition Luncheon, taking place at the Hilton approach to leadership and his ability to share his vision with Meadowvale Hotel in Mississauga, Ontario. his team and customers. Under his leadership, Spectra Premium Maslack built his company, Maslack Supply, on the foundation Industries has moved from a one product line company to having of ensuring that the customer is the most important person in the multiple product lines in its portfolio. Following this year’s business. Through his leadership and innovative business thinking over annual general meeting, Best will join the AIA Board Executive the years, Maslack Supply has provided a gateway to Northern Ontario as Second Vice-Chair. June 2017 collision Repair 79
Tesla reveals revised bodyshop standards Tesla has publicly committed to expanding and improving its bodyshop network in North America and now the company has released two new documents that provide some hints about how that will roll out. The Tesla Body Repair Program Operating Standards and Tooling Master List spell out the requirements for shops to become Tesla certified. Intriguingly, Tesla indicates that there will be at least two distinct levels of certification, with different levels of training required. Tesla has had significant issues with getting vehicles repaired in a timely manner, according to a number of media reports. The company also plans to start manufacturing its first mass-market vehicle, the Model 3, in July of this year. Sales of the Model 3 are expected to be robust, and it seems likely that the current network would be insufficient to handle the volume of repairs. A Primary Structural Location must have two fully-trained technicians with welding certifications who have been trained on Model S and X structural repair, as well as having taken the Tesla course on mechanical, electrical and trim. The training requirements to qualify as a Satellite Cosmetic Repair location appear to be much simpler, only requiring that all technicians working on Tesla vehicles have completed a one hour online electric vehicle safety course. The different levels of certification are reflected in the minimum equipment costs. A shop that wants to qualify as a Primary Structural Location will need to invest a bare minimum of $6,145 USD, as opposed to $1,225 USD for a Satellite Location. Note that is just the equipment you will have to purchase from Tesla. The figures given
A prototype Tesla Model 3, the company’s first mass-market automobile. Production is slated to start in July, and the expectation is that sales will be high. This may be part of the reason Tesla is expanding its network.
assume that you’ve already got everything else you’ll need. The final cost will almost certainly be much higher, even if you already have much of the specified equipment. For example, there are only four approved benches. Assuming you already have one of those four, you will still need to purchase fixtures. Depending on the bench, the fixtures alone range from $5,936 USD up to $27,878 USD. The new standards have been released in the wake of Tesla’s announcement that it plans to add 300 shops to the network, while removing underperforming shops and opening its own corporately owned shops. Collision Repair magazine has reached out to Tesla several times for comments on whether or not any of the new shops will be in Canada, but a reply had not been received by time of publication.
Study: Automated features lead to slower response times A new study seems to indicate that relying on automated systems turns people into worse drivers, according to a study published recently in the Journal of Safety Research. The study was conducted by Sijun Shen and David M. Neyens of Clemson University. The paper, “Assessing drivers’ response during automated driver support system failures with non-driving tasks,” asserts that drivers using automated systems responded worse than those driving manually in terms of “reaction time, lane departure duration and maximum steering wheel angle to an induced lane departure event. These results also found that non-driving tasks further impaired driver responses to a safety critical event in the automated system condition.” In brief, responses were slower for those driving vehicles with autonomous features, especially when they were engaged in a non-driving related task. The research was conducted by having 48 participants “drive” in a simulator with two levels of automated driving, and two levels of a non-driving task. The goal of the study was to quantify drivers’ responses to safety critical events while engaged in a non-driving task, in this case watching a video. The study used a simulated gust of wind to push the car out its lane, while researchers monitored the participants’ responses. In general, the study found that drivers had longer reaction 80 collision Repair collisionrepairmag.com
The driving simulator at Clemson University. A recent study at the university has found that reliance on automated systems leads to worse driving.
times and worse lateral control when driving under automated conditions. Subjects in the completely manual cars had their hands on the wheel and so could steer back into the lane fairly smoothly. The drivers of the semi-automated cars responded to the gust of wind more slowly and more severely, jerking the car back into the lane.
Pfaff Autoworks event looks at the evolution of the Porsche 911 Pfaff Autoworks recently hosted an information session at its Vaughan facility for the Porsche Club of Canada – Upper Canada Region (PCAUCR). The bodyshop welcomed over 50 guests from as far away as Georgetown, Ontario. The event presented an informative session on the evolution of Porsche 911 bodies and construction techniques. Pfaff Autoworks is the collision repair division of Pfaff Automotive Partners, which also operates a number of dealerships and a racing division. Jeff Pabst (left), General Manager of Pfaff Autoworks and a Inside the facility’s special gathering of repairers observe the differences represented by the aluminum room was Pfaff Porsche’s new hybrid-construction Porsche 911. 2015 911 GT3 Cup car, representative of state-of-the-art, modern Porsche construction techniques. With a body consisting of about 60 percent aluminum for lighter weight, the “991” generation body is largely riveted and bonded together. Its combination of steel and aluminum makes for an incredibly light and stiff structure, which benefits performance, but also makes collision repairs more time consuming and complicated. The new hybridconstruction 911 can only be repaired Shop Foreman Robert Gargaro highlights some of the details of one way, with potentially catastrophic Porsche body construction at the event. consequences for corrosion protection and safety if the proper, manufacturerresistance has been significantly improved approved techniques are not followed. with the use of modern primer and coatings. Jeff Pabst is Pfaff Autoworks’ General The restoration project will be finished Manager. During the event, Pabst explained in its original medium green colour before that the bodyshop’s technicians spend at least returning to Pfaff Porsche, where its fullyone month out of the year away on training to restored mechanical parts will be re-fitted. learn the latest techniques from Porsche. Pfaff Once owned by Canadian racing legend Horst Autoworks is a Certified Collision Centre for Kroll, this 1972 coupe is a true piece of history. Porsche. The facility also has certifications Pabst drew some interesting parallels for for Volkswagen, Audi, BMW and McLaren. the crowd between 1972 and modern-day Also on display was a 1972 Porsche Porsche production and repair techniques. 911T Sportomatic restoration project, a While materials science and engineering have collaboration between Pfaff Autoworks and advanced significantly over the last 35 years, Pfaff Porsche to demonstrate competency both cars were built and are repaired using in repairing and restoring classic vehicles. Celette benches. Participants in the workshop With over 400 hours invested in the project, were also given modern and historic copies the body shell has been transformed from of the shop manuals, highlighting how the the rusty, rotted shell that arrived at the engineering and construction of these vehicles shop over a year ago. The floor, rear-seat have evolved over time. platforms, front trunk area and windshield The evening was also graced by some choice surround have been replaced by new pieces. selections from Pfaff Porsche’s classic used The dashboard has been repaired and new car inventory, including a Porsche 912, 1988 fenders and doors have been fitted. Corrosion 911 Jubilee Edition, and 1996 911 Carrera. June 2017 collision Repair 81
Quick-thinking tow truck driver helps catch a murderer Tow truck driver Al Pinheiro of Active Towing in Waterloo, Ontario is being lauded as a hero after helping catch a murder suspect. Pinheiro was listening to a police scanner after his shift when he heard reports of shots being fired involving police officers. Eric Amaral had apparently started a firefight with police after a routine traffic stop on Ottawa Street South. According to reports, Pinheiro came to the rescue by driving his truck into Amaral’s car who was allegedly firing at police officers. The collision apparently dazed the suspect, giving police enough time to arrest him. Neither Pinheiro nor Amaral were injured in the accident, and Pinheiro’s truck suffered only minimal damage. Pinheiro’s actions not only aided officers under fire, but his unorthodox method of criminal-stopping apparently led to Amaral’s arrest in a murder case that was quickly going cold. According to a later trial, Amaral was found guilty and sentenced to life in prison in a murder case. According to reports a victim was shot with a crossbow earlier that month while walking in a park. The victim, determined by the court to be random, was found close to death, and later passed away as a result of the injuries. Pinheiro was honoured in early May with an award for his bravery, presented by Waterloo Regional Police Chief Bryan Larkin.—by Barett Poley
Al Pinheiro at the wheel of his truck, describing to a CTV reporter how he helped police stop Eric Amaral during a gunfight with the police. Photo by CTV News.
Former BCAA tow truck driver taking labour dispute to BC Supreme Court A former British Columbia Automobile Association (BCAA) tow operator has opened a labour dispute petition against the BCAA for firing him during a union drive for BCAA employees. David Lindsay, the driver in question, had worked for the association for more than 20 years, having started his career with them in 1997. According to his petition, he was fired on February 8, 2017, right in the midst of doing union work. This is a tricky situation for the BCAA, as the Labour Relations code “… prohibits employers from discharging employees during union certification campaigns [without] proper cause. This provision does not require that an employer have any
ill intent or anti-union animus in making the decision to discharge an employee.” Lindsay believes they shouldn’t legally have fired him, even if the association’s actions weren’t anti-union in nature. Lindsay also brings up his disabilities, adding to the growing list of labour rules he claims the BCAA has broken. According to Lindsay, he is disabled due to depression, anxiety and attention deficit disorder. The termination of an employee with a disability is a violation of the Human Rights legislation, but only if the employer has no cause other than the disability itself. The Canadian Office and Professional Employees Union Local 378 has filed a complaint with the board, claiming that
Lindsay was fired without due cause during the union’s certification campaign. BCAA, however, denies any claims that he was fired, and found that Lindsay was not terminated during a certification campaign, stating that even if he was, the association had proper cause to fire him. The union has since asked the BCAA to look at the case again, but the board rejected that application, according to Lindsay’s petition to the Supreme Court. Lindsay is asking the Supreme Court to negate the board’s decisions as being “patently unreasonable.” Despite this, nothing has been tested in court, and neither the BC Labour Relations Board, nor the BCAA have filed a response or comment as of press time. august June 2013 2017 collision Repair 85
Recycling News....................87 - 91
Tire Take Back launches with a dream come true
During this year’s Tire Take Back at Dom’s Auto Recycling in Aurora, Ontario. Dom’s was one of over 60 OARA members that participated in this year’s event.
Unlike most kids her age, 12-year-old Nethulya will spend her summer vacation in the hospital recovering from a major hip surgery that will require a three-month stay and months of extensive physiotherapy. Living with cerebral palsy and an eye condition, Nethulya, from Newmarket, Ontario, uses a walker and leg braces to walk, lacks the coordination of her fine motor skills and has already endured countless medical appointments and surgeries. As a big fan of anything related to princesses, Nethulya dreams of days filled with magic, happiness, and memory making, just like the experiences she’s heard her classmates talk about. Recently, Nethulya was given the news that The Sunshine Foundation of Canada
will be making her biggest dream come true, thanks in no small part to the efforts of members of the Ontario Automotive Recyclers Association (OARA). Just before her surgery, she and her family will be whisked away for a magical vacation to Walt Disney World where she will meet Sofia the First, her favourite princess on her favourite television show. Returning just before summer vacation begins, Nethulya will get the chance to share her dream experience with her friends at school, something she’s told her mom she’s always wanted to do. The dream vacation will give the family time to make some happy memories together that will give them strength and keep their family positive during Nethulya’s long recovery ahead. Continued on page 88
The challenge of acquiring end-of-life vehicles Access to quality, late-model salvage is a topic of concern for recyclers around the world. The challenge was recently discussed at IARC 2017 in Berlin, Germany. Finding quality salvage vehicles is a challenge for recyclers worldwide. A number of sector representatives came together recently at the International Automobile Recycling Congress (IARC) 2017to discuss various proposals to meet this challenge. The event took place March 22 to 24 at Hotel Palace in Berlin, Germany. Henk Jan Nix is the General Secretary of the European Group of Automotive Recycling Associations (EGARA). Nix believes the solution is registration systems which track vehicles during their entire life. Ideally, this would ensure that the vehicles will be sent only to officially recognised end-of-life vehicle dismantlers. Of course, that would also require official recognition and guidelines for what constitutes a legitimate vehicle dismantler. In Canada, some provinces have this sort of recognition, but the majority still do not. A further suggestion from Nix was to simply make it an issue of dollars: pay more for the cars and the sellers will naturally sell them to you. However, Nix says this is only possible if automotive recyclers can recover as many parts as possible. In turn, this requires that they have access to the right data. This is an issue that is top-of-mind for auto recycling professionals here in Canada. “In order to do so, we need more information from manufacturers about the various parts,” said Nix according to a report in Recycling magazine. “We are willing to pay for this information.” Continued on page 91
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Nethulya was presented with her Sunshine Dream come true by OARA’s Executive Director Steve Fletcher at the association’s annual conference. The presentation was made at the official announcement of the 8th Annual OARA Tire Take Back event, a province-wide recycling fundraiser that encourages Ontario residents to drop off their used tires for free at participating collectors in support of Sunshine. “The opportunity to share in Nethulya’s Sunshine Dream presentation really crystallized for everyone in the room what their efforts through the Tire Take Back program translate to,” says Fletcher. “As we launch the eighth year of the initiative, we’re happy to be able to help connect more people to the work that Sunshine does for children and their families.” Since 2010, OARA, in partnership with Ontario Tire Stewardship (OTS) and the Ontario Federation of Agriculture (OFA), has helped raise over $1 million in support of Sunshine dream programs through the OARA Tire Take Back event.
“Responsibly recycling tires is the name of the game for us,” says Claudia Hawkins, Director of Promotion and Education for OTS. “So when something as simple as recycling your tires can positively impact the lives of children living with severe disabilities and life-threatening illnesses, we are more than happy to lend our support.” The 8th Annual OARA Tire Take Back ran from May 23 to June 4, with tire collectors, haulers and processors donating collection allowances associated with each passenger, light truck, and agricultural tire dropped off to support Sunshine. “On behalf of Nethulya, her family, and the thousands of other families across Canada who are impacted by your support, we thank OARA, OTS, OFA and all their members and partners and communities across Ontario for dreaming big with us and continuing to make Sunshine Dreams come true,” says Nancy Sutherland, CEO for The Sunshine Foundation of Canada. For more information on OARA Tire Take Back, please visit rethinktires.ca/tiretakeback.
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Princess Elsa presents 12-year-old Nethulya with gifts at the 2017 OARA Convention. Nethulya was also given the news that she was going on a trip to Disney World, thanks in part to donations made by OARA members to The Sunshine Foundation.
OARA promotes the annual Tire Take Back event in numerous ways, such as with eye-catching displays.
OARA creates community through scholarship program The Ontario Automotive Recyclers looking to bind our members Association (OARA) has chosen 23 retogether. We tell [the owner] to cipients for its annual scholarship promake it a big deal,” said Executive gram. Since 2010, OARA has provided Director Steve Fletcher. Having scholarships for individuals planning the owner make a presentation of on pursuing a full-time post-secondary the scholarship accomplishment education program. The program has creates a sense of community offered financial aid for hundreds of within the business. students over its eight years, with a The funding for the scholarships total of $235,000 donated. comes from fundraising at their anTo qualify for these scholarships, nual conferences. Since the positive the applicants must have a parent or Rob Heslop from Andy’s Auto Wreckers with his daughter Lindsay reception of the program, OARA receiving her OARA scholarship cheque from Steve Fletcher of OARA in guardian as a current employee of 2011. Heslop’s daughter Lauren also received an OARA Scholarship this has devised different ways to bring in a Direct Member of OARA. Unlike year, being the fourth of his children to do so. money including silent auctions, charmany scholarship programs, it is not ity casinos, raffles and 50-50 draws. required to be entering the automotive give back. The most important aspect was Whether it is with the annual industry. So long as the applicant has plans to use the money in a way that would help conferences, scholarship programs, or work of post-secondary education, all it takes is to establish community. That is when the within the automotive industry, OARA filling out the application. scholarship program took form. keeps moving forward and creating a strong In 2010, after generating a considerable Instead of shipping the scholarship sense of community. charitable fund through its vehicle retirement cheques directly to the recipient, OARA For more information on OARA, please programs, OARA was looking at ways to sends them to the yard’s owner. “We’re visit oara.com.—by Josh White
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Global scrap market predicted to grow to 997.9 million tons by 2021 Analysts from research firm Technavio predict that the global scrap metal recycling market will grow to 997.9 million metric tons by 2021, with a combined annual growth rate (CAGR) of more than 3 percent. The research study by Technavio on the global scrap metal recycling market for 2017-2021 provides a detailed industry analysis
based on the scrap type (ferrous scrap metal and non-ferrous scrap metal) and geography. Technavio analysts highlight the following three factors that are contributing to the growth of the global scrap metal recycling market: • Growing demand for commodities in developing countries • Benefits of scrap metal recycling • Transition in the automobile sector Globally, there has been a continuous increase in the demand for automobiles and consumer electronics, which has increased the amount of scrap metal that is generated due to stamping, clippings, borings and tunings, commonly termed as prime scraps. “The automotive sector is shifting towards manufacturing cars that are cleaner, safer, and lighter to reduce the carbon emissions from the sector. The compliance to environmentally friendly manufacturing procedures is driving the adoption of scrap metal recycling in the industry,” says Thanikachalam Chandrasekaran, Lead Analyst at Technavio. The growing popularity of electric vehicles and rising adoption of light-weight vehicles are two important factors that are positively impacting the adoption of scrap metal recycling in the automobile sector, according to the report from Technavio. For more information, please visit technavio.com.
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Continued from page 87
Access to quality, latemodel salvage is a topic of concern for recyclers around the world. The challenge was recently discussed at IARC 2017 in Berlin, Germany.
The dollars paid to sellers do not necessarily have to come out of the pockets of recyclers, according to Gareth Williams. Willliams is the Marketing & Communications Director for the EMR Group. He says there are other ways to reward sellers for disposing of vehicles through approved channels. “One such way would be to introduce a type of road fund levy that is then paid to the last owner when it is disposed of properly,” said Williams according to Recycling magazine. The report also notes that Denmark uses a system like this, and has found that a payment of about 300 euros seems sufficient to keep end-of-life vehicles in the salvage stream. “Those people who do not follow the required processes for disposing of end-of-life vehicles do not have the overheads that we have and therefore can afford to pay more for these vehicles,” said Williams, according to Recycling magazine. “A great many end-of-life vehicles go missing every year, all over Europe, which means we cannot run our plants at full capacity.” The report also includes statistics on the number of end-of-life vehicles that disappear from the stream every year. The stats were provided by Dr. Georg F. Mehlhart, Senior Researcher for Resources & Mobility at Oeko-Institut. He estimates that between 10 and 12 million end-of-life vehicles are generated across the European Union each year. Some 1.2 million of these are exported outside the EU as used vehicles. A further six million are officially reported and treated according to the requirements of the ELV Directive. Dr. Mehlhart notes that this means about four million of these vehicles simply disappear every year in the EU. That’s equal to 40 million vehicles disappearing from the salvage stream over the last 10 years in the EU.
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ShopTalk Share your knowledge with customers
By David Gold
n an ever-changing marketplace, where consumers are becoming more educated and savvy in regards to their own vehicles and in understanding how repair work is done, along with the potential associated costs, the ability to communicate clearly and effectively with clients in an open and honest manner is more important now than in previous years. Becoming a part of our clients’ automotive educational journey can further promote
understanding as to how we can help our clients on an ongoing basis. Information sharing is a key practice that has afforded auto recyclers and collision repair facilities the means to adapt almost seamlessly as the market shifts and consumer needs change within our specific business areas. Sharing what we know with our customers can allow for supportive information sharing (correct information, rather than opinion based) and the opportunity for us
This is an opportunity to showcase what we know and educate OUR clients. the collision repair industry image as one that is made up of reputable and educated service providers. Auto recyclers and repair facilities are not only sources for parts and service, but also educational resources for customers to tap into, opening up an opportunity for repairers and consumers to truly work together. This is an opportunity to showcase what we know and educate our clients on what they should know as consumers, thus creating a partnership with longevity. In recent years, auto recyclers and collision repair facilities have worked in concert with one another to cross promote our businesses and use our partnership to educate one another on better business practices, as well as taking advantage of the opportunity to better understand the processes that impact our reciprocal businesses. This has allowed for greater levels of understanding between the two industries and supplies a means to work together to provide our customers with a greater service experience across the board. Taking that same premise and applying it to our ongoing relationships with our customers today will allow for a better 92 collision Repair collisionrepairmag.com
as parts and service providers to keep the customer up to date and up to speed with key information about their vehicles on an ongoing basis. There are many resources available that can be utilized to assist with an initiative such as this. Our industry associations, for example, provide us with information whenever it becomes available, to assist us in becoming much better at what we do on an ongoing basis. Taking some of this information and using it to better educate our customers provides the opportunity and platform to remain in contact with our customers beyond a service or repair job. It doesn’t take very much to keep the contact going. Emails, texts, even a physical newsletter or Facebook post can give our customers the information that they probably are looking for anyway, but from a reliable and trusted source. David Gold of Standard Auto Wreckers is a founding member of Fenix Parts and holds the title of President for Canadian Operations. Locations in Canada include Toronto, Port Hope and Ottawa. He can be reached at 416-286-8686.
Advertiser Index Company
3M..................................................... 4 AADCO Auto...................................90 AkzoNobel........................................ 7
PayAttention! AVs come with more risk than you might think
ARSLAN ......................................... 17 Assured Automotive.......................45 Auto Quip Canada............................ 8
By Jeff Sanford
Automotive Recyclers.................... 91 Axalta..............................................96 BASF................................................. 9 Canadian Hail Repair.....................30 Car-O-Liner..................................... 37 Car-Part.com.................................. 76 Carcone’s Auto Recycling..............88 Cardinal Couriers........................... 15 CARSTAR Canada..........................34 Color Compass.............................. 12 DeBeer Refinish..............................95 Dominion Sure Seal........................22 Eurovac...........................................40 Equalizer.........................................20 FBS Distribution............................. 13 Finixa............................................... 21 Fix Auto Canada.............................83 Formula Honda............................... 74 Garmat............................................ 41 Global Finishing Solutions.............44 Hollander........................................93 Impact Auto....................................86 Martech........................................... 81 Mitchell................................59, 60, 61 Monidex..........................................68 NACE Automechanika....................50 OARA..............................................90 Ontario College of Trades..............48 Peter Kwansy..................................64 Pffaf Automotive............................. 71 Polyvance.......................................38 PPG................................................2,3 Pro Spot International....................52 RBL Plastics................................... 19 Norton Saint-Gobain......................33 SATA Canada..................................82 Spanesi Americas..........................58 Stark Auto Sales.............................84 Steck Manufacturing...................... 78 Symatch..........................................66 Thorold Auto Parts.........................89 Tiger Auto Parts.............................. 14 Toyota..................................28,29, 72 UAP................................................. 67 Wedge Clamp.................................49 Wurth Canada................................46
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he proliferation of driver assistance features over the past several years has happened remarkably quickly. There are sensor-based devices to help drivers back-up, stay in their lane and avoid pedestrians. But recent research could leave some wondering if the rapid adoption of driver assist features has occurred too fast. The study, “Assessing drivers’ response during automated driver support system failures with non-driving tasks,” published in the June 2017 issue of Journal of Safety Research, attempted to assess the response of drivers to incidents while in assisted driving mode. One of the assumptions of driver-assisted digital tech is that drivers can quickly and easily take back control of their vehicle from the automated system if needed. The research suggests this assumption is resting on shaky ground. Those who have been around the collision repair industry for any length of time will understand. According to the authors of the study, “drivers using the automated systems responded worse than those manually driving in terms of reaction time [and] lane departure duration...” Furthermore, “these results found that non-driving tasks further impaired driver responses to a safety critical event in the automated system condition.” That is, it is the case that once a driver takes their attention away from the road, their attention is not fully on the road. This is an obvious statement, sure. But let’s think about what this means in terms of today’s vehicles. Once drivers have turned their attention to something else and taken their eyes off the road, it takes a while to get back in the loop. And it is in that crucial gap
in attention that accidents can occur. This was exactly what happened last summer to the Tesla driver in Florida who became the world’s first AV fatality when, while watching a Harry Potter movie, his car drove under the trailer of a semi, shearing the roof off and consequently taking the driver’s life. Similar research was done in aviation in the 1990s, when pilot assist features were being built into airplanes. Even back then researchers found that when pilots were out of the loop they were less likely to monitor the functioning of the system, losing situational awareness of both it and their surroundings. It’s interesting that nary a word has been said about this twenty-year-old research, as driver assist technologies have been unleashed on our highways. Attention is attention. You’re either paying it, or you’re not. If you’re not, it’s going to take a while to regain a sense of what’s happening at the wheel (or stick). One is tempted to dismiss the research as just another of those scientific studies that can be filed in the “no kidding, that’s obvious” file. But as the industry continues to hurtle into this new AV world it seems the stakes are a little high to be cavalier or dismissive of science-based, objective research. Has driver assist technology advanced faster than the understanding and behaviours of the average driver? Interesting question. Jeff Sanford is the Staff Writer for Collision Repair magazine. He can be reached at 905-370-0101 or at jeff@ collisionrepairmag.com.