Collision Repair magazine 12#4, August 2013

POWER PROVIDED: THE LATEST IN STRUCTURAL REPAIR

HAND IN THE TILL

Are your employees stealing from you?

STANDARD PROCEDURE

Small Town,

Reduce cycle time, increase quality.

BIG VIEW Terry and Judy Sieben keep customer service top of mind at Fix Auto Bow Valley in Canmore, Alberta.

INSPIRING CHANGE Future models for success at IBIS 2013.

PLUS

Ikotec packs power in a small footprint, Michael Macaluso of CARSTAR on the future of the industry and CCIF lays out the AIA transition.

NEWCT

PRODU

Volume 12, Number 4

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August 2013

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$4.95

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

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CONTENTS

On The cover 27 higher goals Fix Auto Bow Valley excels in exceeding customer expectations.

Volume 12 Issue 4, August 2013

46

features 32 executive vision CARSTAR’s Michael Macaluso offers a fresh outlook on the collision industry.

34 Human resources How to tell if your employees have a hand in the till ... or the supply room.

37 Standardized operations SOPs help shops become more efficient, organized and employee-friendly.

49 MSO growth and Trends Expansion, consolidation and the evolving market.

IBIS 2013 draws together top influencers from Canada and around the world, including Sam Mercanti of CARSTAR, Brock Bulbuck of Boyd Group and Des D’Silva of Assured Automotive

43

52 big lift, small footprint Powerful, compact Ikotec 3000 shows what it can do in the shop.

NEWS 06 COLLISION REPAIR 55 Towing & Recovery 57 RECYCLING

40

Carlo Juco discovered his future in the industry.

POWER PROVIDED: THE LATEST IN STRUCTURAL REPAIR

departments Produc

SPOTLIG t HT!

On the Cover: Judy and Terry Sieben of Fix Auto Bow Valley in Canmore, Alta.

Photography by: Roberto Rondinelli

HAND IN THE TILL

Are your employees stealing from you?

STANDARD PROCEDURE

Small Town,

Reduce cycle time, increase quality.

BIG VIEW Terry and Judy Sieben keep customer service top of mind at Fix Auto Bow Valley in Canmore, Alberta.

INSPIRING CHANGE Future models for success at IBIS 2013.

PLUS

Ikotec packs power in a small footprint, Michael Macaluso of CARSTAR on the future of the industry and CCIF lays out the AIA transition.

NEWCT

PRODU

Volume 12, Number 4

l

August 2013

l

$4.95

l

Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632

l

YOUR ONLINE SOURCE

Canada’s collision repair information resource.

New articles and top news stories daily.

Visit www.collisionrepairmag.com.

04 Publisher’s page by Darryl Simmons The need for data.

22 Who’s driving? by Jay Perry Pay attention.

23 Point Blank by Sam Piercey What’s your most important KPI? 24 Prairie view by Tom Bisonette Everything was impossible at one point.

30 View from the Top by Dick Cross Mastering fear and hubris.

86 John Street, Thornhill, ON L3T 1Y2

COLLISIONREPAIRMAG.COM

64 Recycling by David Gold Workshop.

HAVE YOUR SAY. We welcome your comments on anything you see in

66 Last word by Mike Davey Qualifying qualifications.

Collision Repair magazine. Send your feedback to editor@collisionrepairmag.com.

august 2013 collision Repair 03

publisher’s page

datadelivery We have questions that need to be answered.

By Darryl Simmons

T

here’s no question that the Canadian collision repair industry is facing challenges at the present time. However, there is a big question mark when it comes to precisely quantifying those challenges.

Simply put, we lack data. We have personal anecdotes, guesses and horseback estimates. Those are great conversational fodder when we see each other at the water cooler or at a conference, but they’re not a very good guide when it comes to making decisions. These are decisions that impact your livelihood and that of your family,

general manager Ryan Potts ryan@mediamatters.ca

began covering the towing industry a few issues ago. This is a dedicated section that we will be expanding in the near future.

Towing is a vital component of the auto claims economy, but it’s still largely an unknown factor for some of us. In much the same way that Collision Repair magazine focuses on the progressive operators in collision repair, our towing coverage will focus on the people and businesses in towing who are striving to better their industry and help their partners in the insurance and collision repair industries.

A good place to start is on page 55, where we’ve got a story about a new report

things change, but the industry still has constants. the health and well-being of your staff and even your community.

We make our decisions based on the best data available. Unfortunately, all too often the best data available is gut-based, not head-based. According to something I heard recently at CCIF, all of that’s about to change.

The CCIF is transitioning to new management under the Automotive Industries Association (AIA). Among a number of changes, the most exciting is that AIA will start to survey collision repair facilities across the country, including both independents and the networks, to establish solid data that can be shared with the industry. Respond to surveys as often and as thoroughly as possible. The information you provide will help you and the entire industry.

We need solid data to reason effectively in a changing world. It’s more apparent than ever before that collision repair is a business of constant change. Speaking of which, you may have noticed that we

PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com

released by the Provincial Towing Association of Ontario on the state of both the association and the towing industry.

Things change, but the industry still has constants. One of those is the need for continuous training. New technology demands new techniques, and techs need to keep up or fall behind. It’s just that simple.

What’s not simple is accessing it. The lack of centralized information can be a barrier.

You might recall the Collision Repair Training Directory we published a few years ago to great success. I’m pleased to announce that the Training Directory is back for good. You can take a look at it’s new incarnation at trainingmatters.ca. The site is still in beta testing, but already you can see that it will be a great benefit. CRM

04 collision Repair collisionrepairmag.com

EDITOR MIKE DAVEY editor@collisionrepairmag.com ART DIRECTOR DANIELA LUBERTO daniela@collisionrepairmag.com Assistant eDITOR ANDREW ARDIZZI andrew@mediamatters.ca Interns abby cohoe, Avi Patel, Sanam Yar COLUMNISTS DAVID GOLD, Dick Cross, JAY PERRY, SAM PIERCEY, TOM BISSONNETTE VP INDUSTRY RELATIONS GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com Marketing Assistant WILL JACQUES will@mediamatters.ca SUBSCRIPTION One-year $29.95 / Two-year $55.95 Collision Repair™ magazine is published bi-monthly, and is dedicated to serving the business interests of the collision repair industry. It is published by Media Matters Inc. Material in Collision Repair™ magazine may not be reproduced in any form with out written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher.

PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 86 John Street Thornhill, ON L3T 1Y2

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

Collision Repair magazine is published

by Media Matters Inc., publishers of:

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Axalta and Axalta Coating Systems are trademarks or registered trademarks of Axalta Coating Systems Canada Company and all affiliates. © 2013, Axalta Coating Systems Canada Company and all affiliates. All rights reserved.

the front end

People on the move Two members of Canada’s collision repair industry have been elected to new positions on the Board of Directors for the Automotive Industries Association of (AIA) Canada. Tony Canade of Assured Automotive was elected

by AIA members to the position of Second Vice Chairman of the Board. Flavio Battilana of CSN Collision & Glass was also elected to the AIA Board as a director. The The 71st Annual AIA meeting saw a number of new faces new positions were announced at elected to the Board of Directors. From left: Brent Hesje, the AIA Canada 71st Annual GenFountain Tire; Robert Hattem; UAP; JoAnn McKeown, Osram Laura Sylvania; and Flavio Battilana, CSN Collision & Glass. eral Meeting (AGM), which took Pennings. place in Quebec City at the Fairmont Le Chateau Frontenac.

Concours Collision Centres~CSN is Robert Hattem from UAP was elected as pleased to announce that Kari Barton has Chair of the Association’s Board of Directors joined the organization in the role of Director for 2013-2014. of Business DeFix Auto has announced that Stefani velopment. Barton McIntosh has joined the team as Strategic has been in the Partner Developer for Fix Auto Alberta. insurance claims inMcIntosh has over 10 years of cusdustry for 22 years tomer service experience. She was most and most recently recently involved in administration and prowas the Claims duction management at Fix Auto Calgary Branch Manager of Kari Barton.

South Central. She joins Fix Auto with great the RBC Insurance knowledge of RepairCenter, estimating and Calgary office. She working hand in hand with insurance partbrings a wealth of experience in customer ners. Most recently, McIntosh also executed service and Insurance processes. In Barleadership and participation during the 2012 ton’s new role, she will continue Concours Alberta hail catastrophe. lean strategy vision with a concentration on “Stefani possesses great attention to deinsurance performance, developing dealertail and has a strong ship relationships and delivering exceptional passion for the body customer experiences. She can be reached shop industry, she at karib@concours.ab.ca. is truly a great asset Car-O-Liner has hired Peter Richardson to the Fix Auto oras a Key Accounts Manager. In his new role, ganization. We are Richardson will work closely with Car-O-Linpleased to have her er’s OEM and MSO partners across North Stefani join the team,” said America to understand their needs and offer McIntosh.

Peter Polito, Gensolutions that will enhance their business. eral Manager, Fix Richardson joins Car-O-Liner after 10 years Auto Western Canada. at Shure Manufacturing where he developed McIntosh can be reached at 403-978-2676 and managed Shure’s long-term relationor smcintosh@fixauto.com. ships with OEM equipment programs, as well Fix Auto has also announced the apas directed sales initiatives and strategies pointment of several team members to new to increase brand positions as part of the company’s national awareness and restructuring in Western Canada. Peter sales. Before that, Polito has been named the General Manager Richardson spent 12 of Fix Auto Western Canada, while Kelly Polito years at SBC Telewas named the Assistant General Manager. communications in Martin von Holst has assumed the posivarious sales and Peter tion of Sales Manager of Fix Auto Canada’s account manageRichardson. western division. ment positions.

06 collision Repair collisionrepairmag.com

That robot you programmed to eliminate waste has bricked up the bathrooms, thrown away the trash cans and welded the dumpster shut!

Look on the bright side. Things can’t possibly get worse.

Must eliminate waste … bzzt … organic life is wasteful … must eliminate organic life.

So it can’t get worse, eh?

Shut up.

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global view

Matthew Ohrnstein: 1955 - 2013 It is with great sadness that we report that Matthew Ohrnstein, managing director of Symphony Advisors and co-host of the Collision Repair Executive Webcast (CREW), passed away Tuesday, April 30 while jogging near his home in Southern California. He was 57.

He is survived by Marcy Tieger, his wife and companion for the past 19 years, along with his sons Michael and Steven and daughters Jessica and Rose. Prior to founding his consulting firm, Symphony Advisors, Ohrnstein served as chairman and CEO of Caliber Collision Centers from 1997 until October 2004. Caliber Collision Centers added 68 facilities in California and Texas during Ohrnstein’s eight years with the company.

Ohrnstein was a frequent speaker at industry events, sharing his knowledge and pain staking research into the collision repair

industry with fellow industry stakeholders. He was also a frequent contributor to a number of industry trade publications, including Collision Repair magazine.

A memorial service to celebrate his life took place on Monday, May 6, 2013 at 3:00 p.m. at University Synagogue, located at 3400 Michelson Drive in Irvine, Calif.

Matthew Ohrnstein, speaking at a recent meeting of the CCIF in Toronto.

3m opens first collision facility in dubai

Irfan Malik of 3M Middle East & Africa and B.P. Vidyanandhan, Managing Director and Owner, Rover Auto Center cut the ribbon to officially open the first 3M Authorized Bodyshop in the Middle East.

3M Automotive Aftermarket division, in collaboration with Rover Auto Center, has inaugurated its first Authorized Bodyshop in Dubai. The facility is the first of its kind from 3M in the Middle East region.The new 3M Authorized Bodyshop was inaugurated in the presence of Irfan Malik, Area Vice President, 3M Middle East & Africa and B.P Vidyanandhan, Managing Director and Owner of Rover Auto Center.

According to a statement from the company, the 3M Authorized Bodyshop has been established to offer high quality and professional

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08 collision Repair collisionrepairmag.com

collision repair services to car owners by using proven 3M solutions, combined with 3M’s decades of global expertise in the automotive aftermarket industry.

With the inauguration of the new centre, 3M Middle East & Africa says it has established a dedicated one stop shop for car collision repairs in the UAE. Strategically located in the Al Quoz Industrial area, and well equipped with the latest technology for collision repair and car detailing, the newly inaugurated centre will offer 3M’s complete range of automotive solutions with the assurance of a fast turnaround time for damaged cars.

With the launch of its first collision repair facility in Dubai, 3M has also expressed interest in opening similar facilities across the United Arab Emirates and wider Middle East region, in collaboration with existing centres with proven track record, professional management and excellent customer feedback.

First shops in Ireland certified under new standard The first collision repair facilities in Ireland have been awarded the country’s new Certified Steel Standard (CSS). CSS is a voluntary standards program developed by the Society of the Irish Motor Industry (SIMI) and is supported by the Road Safety Authority (RSA).

This is the first standard in Ireland that covers all aspects of shop operation and is in line with the standards used in the U.K.. CSS details minimum requirements for competent personnel, appropriate and well-maintained equipment, suitable repair methods and quality of repair materials. The standard also embraces all of the aspects of repair process management, with an emphasis on continual improvement. Shops who wish to achieve the new certification must pass an independent audit NMU Auditing & Inspection Services.

The facilites were presented with the newly awarded certification at the Dublin Institute of Technology by Alan Lyons, President of SIMI. A statement from SIMI says the organization expects that this new standard will become best practice in the sector.

Why be anonymous when you can be visible? fixauto.com

Join us.

Fix Auto is 20 years of excellence, over 200 body shops, 2,000 employees, and more than 2,000,000 satisfied customers.

For more information please contact Daryll o’Keefe, General Manager ontario > dokeefe@fixauto.com | 416.617.8044

THE BODY SHOP NETWORK

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FIXAUTO.COM

news

csn golfs for make-a-wish foundation

By Sanam Yar

CSN Collision & Glass held its 7th annual Golf Tournament in Piper’s Heath Golf Club in Milton, Ont. The tournament experienced high attendance with significant growth from last year, with members of the company, partners and special guests in attendance.

The tournament was in support of the MakeA-Wish Foundation. Special packages were sold at $30 per person, adding to the generous donations from company members and sponsors. CSN donated $10,000 to the MakeA-Wish Foundation as a result.

Robyn Goodman and Karen Kwapien from the Make-A-Wish Foundation were on hand at the golf tournament to accept the donation and help promote CSN’s upcoming Loose Change Campaign to benefit Make-A-Wish.

Clockwise from above: Flavio Battilana, Larry French and Jenny Trokic of CSN; Norm Angrove of PPG; Vic Pasnyk of Allstate and Richard Marsh of Brimell Group Collision~CSN; Gloria Mann of Collision Repair magazine and Manuel Der Haroutiounian of Bayview-Steeles Auto Collision~CSN; Neal Weir of MAX Auto Supply, Mike Savage and Craig Jalbert and Peter Wrong of 3M.

Attn: PDR Now you

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10 collision Repair collisionrepairmag.com

Axalta Coating Systems has rolled out a new corporate brand identity that captures the scope of its busin e s s a ro u n d t h e world. A statement from the company says the new logo highlights the Axalta name as well as its focus on performance and will provide a consistent and clear symbol of the company, and the products and services Axalta provides to over 120,000 customers in 130 countries. Axalta had previously operated as DuPont Performance Coatings.

“We’re tremendously excited about our new look and what it says about our future. It embodies our commitment to move ahead in the marketplace, putting customers first and offering an exciting portfolio of brands,” explained Axalta Chairman and CEO Charles Shaver. “As a leading global company that is 100 percent dedicated to developing, manufacturing and distributing coatings, we are poised to perform and deliver on our customer commitment.”

Please visit axaltacoatingsystems.com to learn more.

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TAKE THE

GENUINE LEAD Uniparts offers services to help put you in front.

Superior service is what sets you apart from your competitors. Offering superior ser vice defines Uniparts. The company is a genuine automotive part brokerage company, specialized in the sale of OEM parts to collision centres, representing all major brands, from Acura to Volvo.

The goal is simple: facilitate accessibility and management of genuine OEM parts, taking the headaches away from dealerships and their collision centre customers.

Uniparts is well known in Quebec and the Ottawa area, where the company has operated for 17 years. Now, they’re ready to roll out their services across Ontario.

The first focus will be the Greater Toronto Area. Mike Kaplaniak is the company’s Director of Operations and Development for the Province of Ontario. He says their services will benefit both collision repair facilities and dealerships.

“We have the capability to significantly increase the service level shops are receiving,” says Kaplaniak. “We’re an added service to the collision centres, essentially an extension of the service they’re already

receiving from dealers. We make sure the dealerships are giving the best service their customers should be getting.”

Kaplaniak explains that what Uniparts offers goes beyond brokering parts. They work with both shops and dealerships to find solutions that benefit all parties.

“It wouldn’t be inappropriate to call us a facilitator between the collision repair facility and the dealership parts department.

We negotiate on behalf of the shop to make sure they’re getting a fair discount, and we work with the dealerships to ensure they’re serving their customers effectively.”

Walter Burwood is the Parts Manager at Pathway Hyundai in Ottawa.

“They make life a lot easier,” says Burwood.

“Not only do they go out and call on our behalf to get us more business, they’re always on top of giving us feedback. Whenever there is an issue, they let me know right away so we can get it resolved as soon as possible.”

Uniparts also extends the dealer’s standard warranty on sheet metal parts, which is typically one year. They offer a lifetime warranty, which is a benefit for the repairer and reassurance for the vehicle owner.

In addition, dealerships are often limited in

that they can’t see what other dealers have on their shelves. Kaplaniak points out that Uniparts solves this problem too.

“They would have to manually call the other dealerships and see what they have in stock right now. We take that load off of them,” says Kaplaniak.

This is a huge advantage for dealerships, who can spend fewer staff hours calling colleagues and more on the core business. It’s also a big advantage for shops.

“Waiting for a part that’s on back order can be a huge issue for a shop’s cycle time,” says Kaplaniak, whose prior experience includes handling operations for a large national network of collision repair facilities.

“We can help the shop by finding a source for that part immediately. Not next week, but tomorrow morning. In short, we help them get the job done faster.”

Getting the job done faster is another area of specialization for Uniparts.

“We can help them with ensuring ontime delivery, and we can even set up other special programs that will benefit them when it comes to cycle time. That means a lot in the shop, where every second counts,” says Kaplaniak.

For more information on Uniparts, please contact: Mike Kaplaniak at mikekaplaniak@unipartsoem.com.

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CSN Collision & Glass

Welcomes Its Newest Members! airdr ie Au to Bo dy ~ CS

N AU TOTECH Co llis ion ~ CS

N

o Bo dy ~ CS N

H IG H LA ND Aut

February 1st, 2013 Airdrie Auto Body ~ CSN located in Airdrie, Alberta, owned

by Rick and Theresa Whitty, is now a proud CSN shop.

CSN welcomes Rick, Theresa and their entire team at Airdrie Auto Body ~ CSN!

ABSOLU TE Co llis ion ~ CS

March 1st, 2013 Highland Auto Body ~ CSN, situated in the eastern part of the Ottawa, Ontario region is owned and operated by Peter Kuhn.

Welcome Peter and Highland Auto Body ~ CSN! CALL PETER: 613.741.5686

N

February 1st, 2013 Craig Philips, owner of Autotech Collision ~ CSN in Lacombe, Alberta, has been serving the drivers of Central Alberta since 1996.

CSN welcomes Craig and his team at Autotech Collision ~ CSN to the family!

K ingston

April 1st, 2013 Absolute Collision ~ CSN located in Stony Plain, Alberta is owned and operated by Vern Crawford.

CSN welcomes Vern and his team at Absolute Collision ~ CSN! CALL VERN: 780.968.2221

BAY KI NG Co llis ion ~ CS

C o ll is io n ~

CSN

N

April 1st, 2013

JACK MAY Co llis ion ~ CS

N

June 1st, 2013 ly Jack May Collision ~ CSN is ideal er located in Ottawa, Ontario. Own with May, John ator oper and his team, has been serving the .

Western Ottawa region since 1965 CSN welcomes John and the team at Jack May Collision ~ CSN!

May 1st, 2013 Lorne Richter has add ed yet another location to the CSN network! Bay King Col lision ~ CSN is conveniently located centrally on Hamilton mountain.

CSN proudly welcom es the team at Bay King Collision ~ CSN!

For more information, please contact us at: CSN Collision & Glass 377 Evans Avenue, Suite 102 Toronto, ON M8Z 1K8 1.866.400.4CSN www.CSNinc.ca

Kingston Collision ~ CSN is located accessibly right off of rio. highway 401 in Kingston, Onta Owners Pat Stenson and family are proud to be part of the CSN Collision & Glass network.

CSN welcomes the entire Stenson CSN! family and Kingston Collision ~

N HACKETT’S Co llis ion ~ CS

June 1st, 2013 Dave Hackett, owner and operator of Hackett’s Collision ~ CSN has been serving the Belleville, Ontario market for over 40 years .

Welcome Dave and Hackett’s Collision ~ CSN to the CSN netw ork of collision repair facilities!

The best repair shops are handpicked.

Customer Service Network CSN repair shops are handpicked as the best of the best based on quality service, customer experience and satisfaction. At CSN, we’re in the business of exceeding your expectations. Relax, it’s taken care of by experts who care about top-notch work and integrity, delivering on the promise.

Confidence. Trust. Integrity.

www.csninc.ca

news

I-CAR launches new Welding Qualification Centre

By Mike Davey

Welding is a critical skill for today’s collision repair technicians, and it can be deceptively difficult to master. That is part of the impetus behind the establishment of a new I-CAR Canada National Welding Qualification Centre.

The new centre is located at CARSTAR Vision Park in Hamilton, Ont., and will serve as a hub for Canadian automotive welding certification. The first class of technicians started the certification process on May 29, 2013, at CARSTAR Vision Park in Hamilton, Ont. The program started with a class of nine technicians refreshing or learning the basics of automotive welding from Bill Davidge, CARSTAR’s Technical Manager. After receiving instruction in safety and technique, the students spent the morning practicing in CARSTAR’s training facility.

“I think this is one of the greatest initiatives in the Canadian industry right now,” says Andrew Shepherd, Director, Collision Sector for AIA Canada. I-CAR training in Canada is administered through AIA. “Bill is a veteran I-CAR instructor, and this is program is something that serves I-CAR, CARSTAR and the whole industry.”

Shepherd says that when it comes to welding, some techs may overestimate their current skill level.

“One thing I like to ask is ‘How good a welder do you think you are?’ It will be really interesting to make the comparison between where they think their skills are right now, and where they think they are afterwards,” says Shepherd.

There are two main drivers behind the push for welding certification. First, OEM collision repair programs often require that technicians be I-CAR certified. Second, welding is an absolutely vital part of the repair process.

“It’s not only the structural components that are affected by a bad weld,” says Davidge. “It can also cause problems with restraint systems, so welding is number one when it comes to making sure the repair is effective and safe.”

Air bags and seat belts in today’s vehicles are very precise systems. Any changes to the way the vehicle acts in a collision can render these systems ineffective.

“For example, say a tech has repaired a frame rail using a technique that isn’t OE recommended. The car won’t crumple properly

when it’s in a collision. Because of that, the electronics won’t know when to activate the restraint systems,” says Davidge.

The Centre will operate in conjunction with a Canada-wide network of welding qualifica-

14 collision Repair collisionrepairmag.com

tion instructors starting next month. I-CAR, CARSTAR Automotive Canada, NAPA Auto Parts and 3M Canada are each contributing to the operation of the Centre.

For more information, please visit I-CAR.ca.

Instructor Bill Davidge sets up an example sheet on a practice stand.

Practice is key to developing technique.

The first class at the new I-CAR welding certification centre.

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streamlined operations Mitchell’s toolstore puts the power of integration in your hands.

I

t can be difficult to stay up-to-date on technology in a collision repair shop. Mitchell’s ToolStore brings cutting-edge add-ons in the industry right into RepairCenterTM. Through ToolStore add-ons, repair facilities no longer have to re-enter repair information, remember numerous logins, or leave RepairCenter in order to access various third party services.

Everything is made more efficient.

RepairCenter ToolStore is the premiere one-stop marketplace that connects shops to industry partners, solutions, and tools. It is designed to increase repair workflow efficiency by eliminating data re-entry and multiple logins, while reducing the opportunity for errors. The ToolStore helps shops profit and thrive by providing a streamlined environment that saves time on every repair order and moves more cars through the shop.

The ToolStore provides shops with a wide variety of add-ons to browse through in different categories such as Parts Procurement, Paint Interfaces, Rental Car Management, Shop Analytics, and Compliance. Mitchell has partnered with all of the major collision industry partners in each category to provide shops with a comprehensive selection of industry partners. All of the major paint refinish partners, aftermarket parts providers, and rental car agencies have partnered with Mitchell to develop on the RepairCenter platform.

Barry Burkholder is the owner/operator of Barry’s Paint Shop. He has used many of the apps currently available in the ToolStore.

“I’m always looking for ways to streamline and automate our process, and a lot of the apps in ToolStore help us to do that,” says Burkholder. “Third party apps makes the system more powerful. A lot of the time, these programs were already in existence, but you had to hunt them down, learn to use them and then input all of the data over again. ToolStore helps to boost efficiency by keeping everything in RepairCenter.”

There are both paid and free add-ons in the ToolStore for shops to choose between. Mitchell’s vision for the ToolStore is an open platform, allowing any partner to develop add-ons that bring value to customers.

Enhancing the RepairCenter workspace with add-ons from the ToolStore is as simple as navigating to the add-on’s page and hitting the “order” button. The add-on will then be automatically enabled in RepairCenter. Once enabled, shops can easily access the add-ons and utilize third party services without ever having to leave RepairCenter. Many add-ons transfer information directly to and from specific repair orders, saving shops the time it takes to re-enter data between different vendors and services.

Additionally, add-ons offer a single signon functionality that prevents users from having to remember various logins for each individual service. Finally, add-ons are located right inside the local workflow tabs so users never have to leave RepairCenter to access third party services.

With the ToolStore you can easily expand the functionality of the RepairCenter workspace to match the needs of any growing repair facility. The seamless integration of partner applications into the workspace ensures maximum workflow efficiency and minimum opportunity for errors. The ToolStore’s ever expanding catalog has a wide selection of applications from some of the most popular™ vendors of every category such as parts procurement, paint interface, rental car booking, reporting and analytics, and many more.

Mitchell RepairCenter

For more information on Mitchell RepairCenter , ToolStore please visit mitchell.com TM

news

students bring home gold at national competition

By Sanam Yar and Avi Patel

The competition was intense, but Canada’s top collision repair and auto painting students have emerged. The 2013 Skills Canada National Competition (SCNC) brought together students from across the country to test their skills in direct competition across a variety of trades. The competition took place June 5 to 8 at BC Place Stadium in Vancouver, B.C. Students compete in two different categories related to collision repair, each split into secondary and post-secondary divisions: Car Painting and Autobody Repair.

The competitors gave it their all, but in the end only one student could take home Gold in each division. Cecile Bukmeier of Shield Auto-

Accepting the medals for Car Painting, postsecondary. From left: Mark Paradis (silver), Cecile Bukmeier (gold) and Derrick Dujlovic (bronze).

motive Refinishing in Edmonton and student at Northern Alberta Institute of Technology (NAIT) came out on top for post-secondary students in the Car Painting category. Nicolas Bérubé of Quebec took home the top honours in the secondary school division.

Troy Toews of Star Autobody and NAIT student was awarded gold for post-secondary students in the category of Autobody Repair. Tony Deng of Danforth Collegiate and Technical Institute received the gold medal in the secondary school event.

Mark Paradis, student at the College communautaire du Nouveau-Brunswick received the silver medal in Car Painting, and Derrick Dujlovic of Red River College in Manitoba received bronze at the post-secondary level.

Lucas Salomons of Lord Shaughnessy High School in Calgary and Catherine Elizabeth Mathewson of Danforth Collegiate and Technical Institute respectively received silver and bronze for Car Painting at the secondary level. Erick Reade of Upham’s Carstar Collision in Nova Scotia and Brandon David Scott of Okanagan College in Kelowna, B.C., won silver and bronze medals respectively in the

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post-secondary category of Autobody Repair.

Jonathan Hert of Steinbach Regional Secondary School in Manitoba and Raphaël Huet of Quebec took home the silver and bronze, respectively, for Autobody Repair in the secondary student competition.

The competition brought over 500 students from across the country to compete for the top spot in over 40 skilled trade competitions.

The event drew in more than 10,000 visitors.

Greg Siegel is the owner of TBS Collision in Prince Albert, Sask. and a volunteer member of the national technical committee at the SCNC. He attended the competition for the fourth time this year and says it helps to showcase all of the trades, including collision repair.

“All of the trades need to be publicized more,” says Siegel. “The competition challenges kids that are so bright eyed and really trying to do the best they can. The event has high school kids up to third year apprentices.

Seeing the work they do, I wouldn’t hesitate to hire any [of them] in my shop.”

Next year’s SCNC will take place June 4 to 7 in Toronto, Ont. For more information, please visit skillscanada.com.

news

chrysler canada third oem to join collisionlink OEConnection has announced further expansion of its online parts ordering and fulfillment solution, CollisionLink, to automotive dealerships and their collision repair facility customers throughout Canada.

Beginning in May 2013, Chrysler Canada began a nationwide rollout of the all-makes, all-models original equipment replacement parts ordering solution to its national network of more than 430 dealerships. The automaker joins GM Canada and Ford Motor Company of Canada to become the nation’s third OEM to choose CollisionLink for its dealer network since the solution was launched in Canada last year. A statement from OEConnection says more leading Canadian automakers— and their discount parts programs—will be migrating to the solution in 2013.

According to a statement from OEConnection, CollisionLink helps collision repair facilities in Canada increase efficiencies, reduce unnecessary phone and fax communications and improve parts ordering accuracy (via VIN verification) to ensure faster repairs and more

Ontario College of Trades to form stakeholder advisory groups The Board of Directors for the Ontario College of Trades has approved the creation of stakeholder advisory groups and will begin with the motive power sector, according to a statement from the Automotive Industries Association of Canada (AIA). AIA submitted a request for the creation of a stakeholder advisory group on April 8, 2013.

The stakeholder group is expected to consist of AIA and other interested parties. We’ll bring you updates on how the stakeholder groups will be informed as information becomes available.

The Ontario College of Trades was formed by the Ontario College of Trades and Apprenticeship Act, 2009. Under the legislation, the OCOT has the mandate and powers to regulate all approved trades in Ontario.

The OCOT is managed and administered by the Board of Governors. The board has 21 members, appointed by the College of Trades appointments council. Members of the appointments council were recruited through the public appointments secretariat.

satisfied customers. Equally important, the upcoming expansion will give shops access to an additional automaker parts program that offers competitive-pricing on original equipment parts. Like the programs available from Ford and GM, Chrysler’s Conquest program will be integrated within CollisionLink to help Chrysler, Dodge, RAM and Jeep dealers compete more aggressively with aftermarket suppliers.

Once Chrysler Canada has completed its nationwide implementation this fall, collision

repair facilities will have access to discount parts programs from three of Canada’s largest automotive dealer networks. As the automotive market’s all-makes, one-stop solution, CollisionLink also allows shops to send original equipment parts orders electronically to any wholesale parts dealership.

The CollisionLink Canada solution and all supporting documentation, including the OEConnection Canada website, are also available in French.

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news

boyd group moves into ontario The Boyd Group has announced the acquisition of Kitchener, Ontario-based Queensway Auto Body. This represents the first location for the Boyd Group in Ontario, which currently operates 227 collision repair locations across 14 U.S. states and now five Canadian provinces. Queensway is one of the largest independently owned, single location collision repair centres in the Kitchener/Waterloo market and has been in operation since the

late 1950s. It will continue to operate under its current name for a period of time.

“We have been looking to expand into the Ontario market for some time and we believe this is the right opportunity,” says Eric Danberg, President, Canadian Operations for the Boyd Group. “Not only is this a financially accretive acquisition, but it is also very strategic with a well-established brand, convenient and accessible location and strong

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reputation. It is important to us that we enter a new market like Ontario by establishing a solid foothold for further expansion and Queensway accomplishes that objective.”

The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair centre owners are asked to contact Eric Danberg at 204-4884215 or eric.danberg@boydgroup.com.

Vehicle Security Professional program launches The Vehicle Security Professional (VSP) is the phase II launch of the Canadian Automotive Service Information Standard (CASIS), which provides a framework for Canadian auto manufacturers to share service and repair information with the aftermarket on a level equivalent to authorized dealers.

VSP allows auto and locksmith professionals to qualify for access to vehicle security information such as key codes, immobilizer reset information and similar types of information, necessary to complete certain repairs.

The VSP program creates a registry of automotive service/security professionals who have cleared a background check process. Automaker website subscribers who want to use securityrelated information can apply to join the registry. Security-related transactions are validated against the registry and are fulfilled if the requestor’s security credential is in good standing.

After obtaining a VSP identification number, a user can log onto automaker service information websites that they subscribe to and access security-related service information. This information may only be accessed at the request of a customer, and strict positive identification standards are followed.

The VSP identification number is validated on every use of the system and is posted with the National Insurance Crime Bureau and can be accessed by the Insurance Bureau of Canada.

For more information on registration and application requirements, please visit vehiclesecurityprofessional.ca.

news

Birchmount Collision receives Consumer Choice Award

By Mike Davey

Birchmount Collision has received the 2013 Consumer Choice Award for the Best Body Shop in the Greater Toronto Area (GTA). Owned and operated by Wayne Hosaki, the facility is located 4032 Finch Avenue E. in Scarborough, Ont. “We’ve won other awards in the past,” says Hosaki. “The Markham Economist and Sun Readers’ Choice, the Scarborough Mirror Readers’ Choice award … but this is the first time we’ve ever won the Consumer’s Choice Awards for the GTA. Hosaki says it wasn’t an honour he and his staff were expecting.

“It was a pleasant surprise. We had no idea we were even in contention. They use an independent marketing firm to assess the results,” he says.

Jeff Havercroft is with the Consumer Choice Awards. He says that the method used to determine winners in each category helps to ensure the awards accurately reflect the choice of consumers.

“We use an independent marketing firm, Leger Marketing, which is one of the most respected in Canada,” says Havercroft. “Leger spends four weeks in each market. The first week is dedicated to surveys, both through email and phone calls. The only question asked for each category is, ‘In this category, who would you nominate?’ At the end of the first week, they go on to the next round.”

Leger Marketing uses those initial surveys to compile a list of nominations for each category. Then the next round of surveys begins.

“In the second and following weeks, they’re surveying people with regards to specifics of the nominees,” says Havercroft.

“It’s based on four factors: quality of service, value of service, appearance of the business and overall service to customers.”

When the surveys were completed and the results tabulated, Birchmount Collision came out on top.

Wayne Hosaki, owner of Birchmount Collision, proudly displays the Consumer Choice Award logo that now adorns the front door of his facility in Scarborough, Ont.

“It was quite an honour to learn that we had won, when you consider some of the shops that are larger and have been around just as many years,” says Hosaki. “We just treat all of our customers with respect and courtesy, and we believe in repairing the customer’s car the way we would want our own to be fixed.”

For more information on Birchmount Collision, please visit birchmountcollision.com.

You can find more information on the Consumer Choice Awards at ccaward.com.

Fix Auto Cambridge now Toyota certified Fix Auto Cambridge has become a Toyota Certified Collision Centre (TCCC) and a Scion Certified Collision Centre. The facility is located at 1448 Bishop St. in Cambridge, Ont. According to the company, the Toyota Certified program aims to select only the finest shops that have passed a rigorous audit. Choosing certified shops is an intensive process as the brand’s reputation is tested each time a certified shop is used by its customer base.

“This is a huge honour,” says Val Correia, Fix Auto Cambridge

Fixed Operations Manager. “Our shop’s focus has always been on doing quality work and customer satisfaction. I am pleased that this has now been recognized by Toyota. We are looking forward to serving their customers.”

All certified collision centres obtain information access regarding vehicles, manuals, wiring diagrams and service bulletins. In addition, TCCC shops will soon have access to online technical training, which is a part of the certification program.

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news

CCIF unveils transition plans at St. John’s meeting

By Darryl Simmons

“It’s time for a change. It’s time to take action. It’s time for the CCIF to move to the next level.”

Outlining clearly the current state of affairs and the transition moving forward, Chairman Tom Bissonnette opened up the most recent Canadian Collision Industry Forum (CCIF) meeting in St. John’s, Nfld.

After providing a brief history of the forum and thanking the hard-working volunteers, Bissonnette expressed the general enthusiasm among the Chairman’s Council in its decision over the past year to approach the Automotive Industries Association of Canda (AIA) to manage the forum and provide a tangible means of action. AIA is a national trade association representing the automotive aftermarket industry in Canada.

“Behind the scenes there is a dedicated team who volunteer their time to help provide direction and agendas. They have helped direct, along with participants, some pretty amazing accomplishments,” says Bissonnette. “But to move forward, we as an industry not only need to identify key action points, we have to be able to act on them.”

A transition plan was introduced at the January meeting in Toronto for the AIA to take fiscal responsibility for CCIF management under the direction of a revamped CCIF Chairman’s Council. Scheduled for hand-off in 2014, the “new” CCIF will be better positioned for action.

According to AIA President and CEO Marc Brazeau, this is a great opportunity to leverage the assets of AIA’s infrastructure.

Key strengths include strong relationships

Transitioning CCIF to the AIA will involve a number of changes. Foremost of these are a commitment to gathering and presenting collision repair market data. Responses to the new changes were discussed in more detail by a panel of four former CCIF Chairs, Glenn Hickey of Auto Parts Network and Collision Clinic in St. John’s, Nfld., Tony Canade, President of Assured Automotive in Ont., Ken Friesen of Concours Collision Centres~CSN in Calgary, Alta., and Larry Jefferies, Executive Vice-President ex officio of CARSTAR.

with complementary organizations, proven success with government and financial accountability and transparency.

The transition has already begun, but will formally commence in 2014 with the launch of the Collision Industry Council, a revamped version of the CCIF Chairman’s Council. The proposed council will include four collision repairers, two insurers, two suppliers, two OEM reps, a CCIF administrator (Andrew Shepherd) and the director of the CCIF skills program. The new AIA/CCIF business plan is based on the issues identified and prioritized by attendees who voted electronically at the Toronto CCIF meeting in January. Those issues were Industry Profitability; Vehicle Technology/Reparability/OE Certification; and Human Resources – Attracting, Training and Retaining Employees.

The flowchart above shows the organization and relationships of the new CCIF.

20 collision Repair collisionrepairmag.com

Common strategies include improved communication and information sharing, according to Bev Cook who introduced and presented the business plan. Cook was instrumental in setting up the original CCIF a dozen years ago while acting as the AIA’s staff liaison for the PBE Panel.

Making sure the right information is available and is properly disseminated will be instrumental in guiding action plans for the new CCIF according to Andrew Shepherd, Director Collision Sector, who also heads up I-CAR for AIA. He said that as an industry, we are unsure of many things such as how many shops are currently in operation, severity, labour rates, cycle times and more. The new CCIF will use surveys to get a good grasp on where we are as an industry and where we need to go. According to Shepherd, AIA will use short surveys and appeal to shops to provide individual data in return for overall results and benchmarks.

He says the key is to start slow, demonstrate the value proposition and move ahead as needed. The first survey will focus on business conditions in the Canadian industry.

Shepherd notes that we’ve seen little or no industry-wide data since the publication of Prep for the Future in 2000. Without the right data, he says repairers cannot see if they’re gaining share or losing, suppliers can’t plan sales and revenue and insurers can’t determine the health of repairer partners.

DesRosiers Automotive Consultants will be contracted to survey collision repair centres and remove any information that could be used to identify the shop. Shops will be contacted and asked to provide information that will be kept in complete confidence. In return they will have instant response to how they fare.

news

To date, AIA says it has commitments to receive generic data from the major networks including Fix Auto, CARSTAR, CSN Collision & Glass and Assured Automotive. According to AIA, this represents more than 50 per cent of the dollar volume of repairs across the country.

Responses to the new changes were discussed in more detail by a panel of four former CCIF Chairs, Glenn Hickey of Auto Parts Network and Collision Clinic in St. John’s, Nfld., Tony Canade, President of Assured Automotive in Ont., Ken Friesen of Concours Collision Centres~CSN in Calgary, Alta., and Larry Jefferies, Executive VicePresident ex officio of CARSTAR. “Pointing fingers at insurance companies and sitting around complaining won’t fix anything,” says Hickey. “For the first time in a long time I really believe that we have an opportunity to validate the facts and present them to all stakeholders in an organized and professional manner.”

According to Larry Jefferies, the key strength of CCIF is to bring all stakeholders together as a single voice. He believes the new steering committee will ensure the collective voice of the industry is captured. “We need to start by looking at where we’ve been and where we want to go. We can’t change where we’ve been, but can only work on a map to where we want to go,” says Jefferies.

When it comes to profitability and sustainability, the key is to make enough profit to maintain sustainability, according to Tony Canade. “Access to data allows us to make financial decisions. How do we compare to the rest of the market, in terms of the trends for sales, claims, severity by region, cycle times, labour costs, etc?”

When asked why an independent would provide data of this type, Canade says independents have the most to gain, as they will be able to benchmark themselves against others in their area and across the country, something they may not otherwise be able to do without the resources of a larger operation.

The need for insurers to empathize with the challenges of the repairers is likely going to become more pressing as the number of shops shrink. According to Larry Jefferies, U.K. insurers are being challenged as the number of shops there has dramatically dropped, leaving them to question if the repairers have the recourse to fix cars. “We must stay ahead of the curve,” says Jefferies.

Hickey points out that increasing sales in a low profit environment is less than ideal.

“Jamming more low profit cars through an already stressed system will only further increase your labour shortage issues,” says

Hickey. “Operational excellence combined with reasonable compensation that is tied to cost increases along with controlled sales increases is a more viable path to sustained profitability. How can we as an industry be expected to continue to invest in training, technology and equipment in an environment of continuously shrinking profit margins? Of even greater concern, how do we compete for skilled labour with other industries that can pay double and triple the compensation?”

Ken Friesen, one of the country’s foremost experts on lean process, says there is still some

room for improvement, and hence cost reductions, in the repair process right from the first notice of loss to the final handover of keys.

“The more you work on operational excellence, the more the constraint becomes external. If we as an industry work together and look at the whole value stream, we improve our chances to achieve operational excellence across the industry,” says Friesen.

The next meeting takes place in Edmonton, Alta., Sat, Sept. 28, 2013 at the Fairmont Hotel Macdonald. For more information on AIA Canada, please visit aiacanada.com.

august 2013 collision Repair 21

who’s driving?

payattention Your staff need to know that YOU know they exist.

By Jay Perry

I

’ve got bad news for those of you who aren’t paying enough attention to your staff. A recent survey published by the American Psychological Association shows that…

Only 39 per cent of employees feel there are enough opportunities for career advancement.

Only 51 per cent of employees feel valued at work.

Only 46 per cent of employees feel adequately compensated.

Only 43 per cent of employees feel they receive enough recognition.

Wow. That’s a sad state of affairs for the balance when they have to spend one-third of their day feeling dead-

Gen Y. What does the Boomer value differently compared to the Gen Y employee? Likely more benefits like supplemental insurance or retirement savings augmentation.

These are not necessarily the same for the Gen Y employee, who may value lieu time or flex hours or additional vacation days. However the solution works out, the value of what is received by the employee must be balanced with what the next employee receives.

The most important part of this approach is the communication and transparency needed to show the individuals the respect they need.

When they can see that, they feel appreciated

when it comes to compensation, we always recommend a fair and balanced approach. ended in their job, not valued, not paid enough and not recognized. Where do you rank with your team?

Do you know? Have you ever had a survey done?

Would you feel a little fear in having one done?

Having been in the industry for over 30 years, I’ve seen a lot of things that cause employees to feel this way. It can be anything from underutilization to personality conflicts to lack of caring to ignorance on both the employee’s part and the employer’s part.

One such example of ignorance is an owner that was adamant about restriction of electronic communication by Generation Y workers. He, being a Baby Boomer, couldn’t understand their different values and need for constant connectedness.

Through a little bit of education, research and some coaching he was able to see the need for flexibility within his organization, change some policies to become more in tune with his workforce and he created a much happier environment for himself.

When it comes to compensation, we always recommend a fair and balanced but uniquely individualistic approach. This means if two people are doing the same job the value of what they receive is equal although not necessarily the same. For example, two clerks in retail, one a Boomer, one a 22 collision Repair collisionrepairmag.com

and move to the preferred category when measured for Employee Satisfaction.

Another comp onent is t he balance to b e achieved in the way compensation is determined.

It as a whole package, not just a salary or hourly wage. The marketplace influences what you pay because if the going rate for basic labour is $14 an hour, you are not going to compete by offering minimum wage.

I believe that an individual employee can bring added value to an employer, rising above the peer group. This too must be taken into consideration in addition to the proficiency of the worker. We see it all the time when one employee’s checks are larger than the next, and no interview with the lesser paid employee happens to illuminate a path to help them earn more. It is by paying close attention to these kinds of details that you will stay the one who’s driving. CRM Jay Perry is the founder and owner of Automotive Business Consultants (ABC), a performance coaching company specializing in the automotive service industry. He can be reached via e-mail at jayperry@a-b-c-inc.com.

point blank with piercey

Chargeitup What’s your number one KPI?

By Sam Piercey

I

t’s time to change or dissipate. We talk a lot about key performance indicators (KPIs), but the real KPI is the estimate. Yes, the estimate.

It will make you or break you.

If you want to stay in business, you absolutely must charge for every single thing you do on that sheet, and you’ve got to make sure that everything goes on the sheet. This isn’t optional. If you use it, you’ve got to pay for it. If you’ve got to pay for it, you’ve got to charge for it. It’s really just that simple. How many businesses do you think manage to survive if they don’t pass on costs to their customers? The answer is ZERO!

your profit. Well then, that’s what you’ve got to do. Profit is not a dirty word. That’s why we’re in business.

Keep your shirt on

Nevermind dealing with image desk personnel or appraisers that don’t get it. If you don’t make the sheet your KPI, and get it right the first time, and train your team to write it up right and get paid for it all, you will lose your shirt.

Make the estimate your KPI and you will increase your GP a point or two on every job. You, as the manager or owner, must look at every

The drill bits, the putty, the sandpaper ... charge for it.

Blueprint

If you want to make the estimate your real KPI, then first, you need to do what’s called a blueprint of the repair process. Some of you are already doing this. For those who aren’t, we’ll go through the process quickly below. This isn’t all of it, but it should be enough to get you started on figuring the rest of it out.

When the car comes in the shop, the first thing you do is tear it down. Map it out. Don’t miss anything, and I mean anything. Count up every clip, every bolt, and so on. Charge for every single thing, down to the individual fasteners, and put it on the sheet. You’re paying for those things so you can provide them to your customers. Since you’re providing them, you need to charge for them. That’s assuming that you want to stay in business.

If you need to, fight. Fight for everything you do if you have to, but don’t give in. Nevermind the repetition of “We don’t pay for that!” Yeah? Then we don’t do it.

Look, you may find that you have to fight for every single thing on every job just to make

sheet and change what’s not on the estimate.

Even look at the paint materials, the drill bits, the bumper repair kit, the putty, the sandpaper.

Charge for it.

Charge!

Have you looked at the invoice prices of wet and dry goods lately? It will blow your mind if you haven’t. We need to buy those things. That means we need to charge for them or go broke.

This industry can’t fix itself, unless you and I try to make it right. Take a stand, buckle up and step it up. We have to! Some shops that ran for years and years have already closed their doors for good.

More will follow. Don’t become a statistic. As you hear me say all the time, say NO! CRM

Sam Piercey is the co-owner of Budds' Collision Services in Oakville, Ont. Sam is a long-time Coyote member and sits on many boards and committees. He can be reached at sam@buddscollision.com.

august 2013 collision Repair 23

prairie view

fourminutemile Everything is impossible, right up until someone does it.

By Tom Bissonnette

W

ell, it is now official, Saskatchewan Government Insurance (SGI) has finally given the collision industry in Saskatchewan a reasonable door rate increase of 30 per cent over three years! As of January 1, 2016, the door rate for auto body repair in our province will be $92.68 per hour.

How did this happen?

First, I give a lot of credit to our provincial auto body association (SAAR) Executive Director Bill Ziebart for keeping the faith and encouraging our negotiating team to hang in there. Secondly I applaud the people from the Motor Dealer Association along with our SAAR people for having the time and patience to see this through. Thirdly we have to thank SGI and Meyers Norris Penny (MNP) for doing the industry study which revealed the fact that precious few shops were making a reasonable profit. Finally, I think we owe

a big thanks to our current MLAs from the Saskatchewan Party for listening to shop owners and keeping an open mind about what fair compensation should be – even if the insurance company was of a totally different opinion.

What does this mean to the Canadian collision industry?

First time for everything

Maybe nothing, but my feeling is that it could be something similar to the four minute mile. For years, before Roger Bannister broke the magic four minute mark, it was thought to be virtually impossible for a human being to run a mile in four minutes or less. In less than two months it was broken by an Australian. Since then it has been broken by thousands of people.

Is it possible that other provinces will follow suit with higher door rates? Will somebody like the AIA do an industry study across Canada like

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prairie view

the one MNP did in our province? We heard plans to do something like that at the most recent CCIF, but you can take just the Manitoba report and see that really only 10 per cent of the shops in this country are making any reasonable amount

profit while having a door labour rate south of $70 per hour? Body shop people are good but they are not that good!

Quite frankly, I think $92.68 per hour is still a great deal for insurance companies. Think about

is it possible that other provinces will follow suit with higher door rates? of money. Will the collision industry approach provincial and federal politicians and have them put pressure on the Insurance Bureau of Canada (IBC) to demand fair labour rates?

Still a great deal

Now I know you insurance folks reading this do not like where I am going, but let’s be totally honest. How can you expect shops to attract and keep employees, invest in new equipment, keep training standards up to the levels of today’s high tech vehicle technology and still make a reasonable

“A new generation in collision repair performance.”

it. If the average industrial wage is $35.60 per hour, employee benefits of roughly 30 per cent equal $10.68 per hour for a total wage of $46.28. If labour costs should not exceed 40 per cent of the door rate, a shop would need to charge $115.70 per hour. Let’s see where this goes. CRM Tom Bissonnette is the owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, SK. He can be reached at tom@parrautobody.com.

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Outperform with Assured! august 2013 collision Repair 25

PROFILES OF SUCCESS

Heading Up! Terry and Judy Sieben have created a model of efficiency, nestled in the heart of the Rockies.

By Mike Davey

Judy and Terry Sieben, and the facility’s Production Manager, Cody Clayton.

august 2013 collision Repair 27

PROFILES OF SUCCESS

Fix Auto Bow Valley occupies a scenic location.

A significant amount of business comes their way from visitors to the region, making the ability to offer a nationwide warranty extremely attractive.

A

nyone who deals with the public knows that customer service is more important than ever before. The internet means word-of-mouth isn’t just limited to friends and family. It can easily spread across an entire community.

This is a new challenge for many collision repairers, but it’s old hat for Terry and Judy Sieben. They’re the co-owners of Fix Auto Bow Valley in Canmore, Alta. Canmore has a population of a little over 12,000 people. In that sort of environment, you need to pay as much attention as possible to making sure you serve every single customer in an exemplary manner. When Terry and Judy built Fix Auto Bow Valley in 1996, they went out of their way to make sure the facility’s design was inviting and comfortable.

Terry got his start in collision repair as a student in the autobody pre-employment program at Saskatchewan’s Kelsey Institute, which operates today as the Saskatchewan Institute of Applied Science and Technology (SIAST).

“I had known several friends and relatives who had been in the industry for many years,” says Terry. “It was certainly something I was interested in, and for the love of cars. I was a bit of a gearhead as a teenager.”

Soon after graduation, Terry and a partner started a facility in Macklin, Sask.

Terry sold his interest in the business to his partner about six years after they opened.

It’s not that they didn’t work well together, and it certainly wasn’t because he wanted out of the business. Terry had met a new partner, Judy, and the two would be partners in business and in life.

Terry and Judy had been married about a year when Terry sold his interest in the Macklin shop. The two headed west to Banff, Alta., where they took over the lease of an existing shop. Terry notes that there

28 collision Repair collisionrepairmag.com

are big differences between Saskatchewan and Alberta. Saskatchewan has a public insurer, Saskatchewan General Insurance (SGI), while Alberta uses the private insurance model.

“Every insurance company has their own operating procedures, things they do and don’t like,” says Terry. “They’re looking for people who fit their programs, but of course their programs are all different. We work together with them as partners to make sure we maintain that fit.”

There were changes in store for Judy as well. In her case, it was a chance to develop new skills.

“I was in the collision repair business with no real collision repair experience, but with years of administration skills,” says Judy. She quickly started to acquire the specific skills she needed. “I received a

PROFILES OF SUCCESS

certificate in basic estimating. I also trained in WHMIS and as a WHMIS trainer, so I can train our staff in-house.”

Since that time, Judy has polished her skills in many different areas of the business: detailing, parts management, marketing, accounting, human resources and the list goes on.

After nearly a decade in Banff, Terry and Judy saw an opportunity to start a new facility in Canmore. This facility would be designed from the ground-up with everything they knew about workflow and customer service.

“Inspiration came from a lot of sources over the years,” says Terry. “Being with Reineking Paint allowed us to travel to Europe and tour many of the extremely large facilities over there. We learned a few things from them, such as design concepts that help workflow, that we applied to the new facility.”

Judy was also heavily involved in the design of the current facility. She focused a lot of her efforts on making the shop “user-friendly.”

“I never wanted to run or own a shop that made women feel uncomfortable or not important, as we all know what a huge customer base they are,” says Judy. “Long gone are the negative aspects that so many shops used to have: a dirty environment, girlie posters on the walls and so on.”

Making the collision centre a more welcoming—or at least not actively hostile—environment for women is common currency among progressive shops these days, but it’s something the Siebens were concerned about 17 years ago. This attitude of always looking to the future is part of what led them to join Fix Auto in 2012.

“The benefits are far too many to mention,” says Terry. “One of the biggest things that comes to mind, though, is Fix Auto’s presence down east. They’ve been extremely successful in appealing to insurance partners, and they’re bringing trends and technolog y out west. We wanted to align with a brand proven to be successful.”

Peter Polito is the General Manager, Fix Auto Western Canada.

He says that when Fix Auto approaches a facility, it’s typically those that are invested in their community. With their support of local charities such as the daycare and various golf charity events, not to mention their focus on customer service and performance, Terry and Judy fit the bill.

“Technology is constantly changing, so training is first and foremost for us.” – Terry Sieben.

“People know them. We want our customers to have a personalized experience,” says Polito. “Everybody knows them. Running a successful business in a smaller community takes exceptional customer service skills. It’s not like in a larger community, where you might have 100,000 customers to draw on. Terry and Judy are involved in their community, and respected.”

Canmore may be a smaller community, but customers can come from far afield.

“We’re a tourism oriented area, so a lot of people are transients. We also have people who have transferred here from out east,” says Terry. “They recognize the brand as soon as they see it. It also gives us the ability to offer nationwide warrantees. It really helps to give some of our customers peace of mind.”

Terry and Judy know that there are challenges to surviving in the collision repair business, but they’re ready, willing and able to meet them.

“Technology is constantly changing, so training is first and foremost for us,” says Terry. “It’s important to maintain Platinum status with I-CAR, and being involved

Part of the production area at Fix Auto Bow Valley.

with Fix Auto as a strategic partner gives us access to a lot of training and support.”

There are always challenges with staff in any business, but Terry says he and Judy are very lucky to have their current staff.

Trends and technolog y are always moving ahead, but Terry and Judy stay on top of advances, in part because of their partnership with Fix Auto.

“We’re seeing more hybrids and electrics, more aluminum and HSS substrates,” says Terry, speaking of the technology side.

“Looking to the future, we’re going to see a further drive towards more efficiency.

That’s fine with us.”

Judy says that joining the Fix Auto network has opened up a new world for her.

“We’ve gained the ability to access other people’s ideas and thoughts, instead of just having each other,” she says. “I’m looking forward to getting involved in a newly formed marketing committee for Fix Auto Alberta. I’ve seen a lot of changes over the 26 years I’ve owned a shop. I’m looking forward to the future, because I know we’ll keep learning, and the industry itself is heading towards more positive changes.” CRM august 2013 collision Repair 29

View From the top

fearorhubris They’re strong motivators ... but absolute poison to achievement.

By Dick Cross

O

bserve a business owner’s behaviour long enough and you can paint a pretty accurate picture of what’s driving him or her.

Business schools would like for us to find that the answer is profit. But profit’s seldom what’s really driving an owner. Sure, it’s what we always talk about. But profit’s a second level motivator for most of us. It’s a surrogate for something deeper which actually drives how we think and behave.

And it’s that deeper motivator that determines our effectiveness. And our ability to deliver profit.

The punch line? What motivates many people running businesses is poison to achievement of their intended success. The ones I see most are Fear, and its near-opposite, Hubris. Start looking, and you’ll

Always pushing for new things. Some of which won’t work. But picking yourself up with a smile every time, and heading off again. Somebody exciting to be around. Because you’re not timid. And because you don’t over respond to fear.

Hubris, on the other hand, means extreme pride or arrogance. It’s also a natural instinct. Unlike fear, high hubris and domination of others often feels good to the perpetrator. But like fear, hubris in the extreme is a debilitating trait. Poison for organizational followership. And the worst perpetrators seldom recognize it in themselves.

Fortunately, like fear, there also are pretty simple ways to bring hubris into check as a positive force. A force that turns people toward us rather than away.

If we want to.

it’s hard. it’s risky. it’s important. and it’s no one else’s job. see them too. Frequently demonstrated. At the top.

Particularly in underperforming businesses.

Fear is our preservation instinct. It’s impossible to shed completely. Nor do we want to. But many of us need to bring it into better balance.

Fear’s most destructive where it’s least visible. Not when failing to stand up to an obvious challenge.

But rather when we hesitate to act on things that we believe, but aren’t absolutely certain, could be right for our businesses. Or when we choose not to shoulder resistance to altering how things have been done in the past. Or when we shy away from reasonable risk to avoid embarrassment or consequence if we’re wrong.

The solution? Adjust your thinking to see being wrong, within reasonable boundaries of risk, as the sign of your courage, and you’ll start thinking differently. Courage and the ability to see things others don’t are why you get paid more than anyone else in your company. It’s hard. It’s risky. It’s important. It’s what makes the difference between great companies and all the rest. And it’s no one else’s job.

Follow through on that job and people will start seeing you in a brighter light. As an adventurer. Someone never satisfied with the status quo.

30 collision Repair collisionrepairmag.com

With hubris, you’ll need a trusted partner.

Someone with the security and guts to give you the truth. The raw, tough, make-you-angry kind. Ask them to help you see how you are seen by others.

Go slow. Tackle only one attribute you’d like to change about how you’re seen by others at a time.

Work on it, with feedback from your partner, until it starts to feel natural. Then ask for another.

Fear and hubris are insidious problems. They’re seldom evident to the perpetrators. Partially because no one’s going to tell the boss that she’s insufferably arrogant. Or that he’s a coward. But it’s also because we have so few credible models for how to handle ourselves effectively in jobs at the top.

Overcoming fear or hubris—and nearly all of us have some to overcome—really isn’t too hard. And getting it done has big impacts for your business.

If you’ve got the courage and humility, do something about it. CRM Dick Cross is an eight-time turnaround CEO, private equity partner, consultant, the originator of The Mid Tier Presidents Course for Executives at Harvard, frequent speaker, chairman and member of numerous boards, and author of the book “Just Run It!” He can be reached at dick@dickcross.com.

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EXECUTIVE VISION

Next Level

By Mike Davey

Michael Macaluso of CARSTAR on fresh perspectives in collision repair.

E

xecutive Vision focuses on discussions with key players in the auto claims economy, their views on the present industry and their vision for the future.

For this issue, Collision Repair magazine’s publisher, Darryl Simmons, spoke with Michael Macaluso, Chief Operating Officer (COO) of CARSTAR Automotive Canada at IBIS 2013 in Montreux, Switzerland, and discussed his views on the present and future state of the Canadian collision repair industry and how young blood is re-energizing the business. A graduate of Western University’s Business program, he started his career in operations while working in the hospitality industry. He came to CARSTAR in 2008 as manager of the insurance team and currently leads the company’s executive team. AS COO, he is responsible for the strategic direction and day-to-day operations of the entire organization across the country.

Collision Repair magazine: Hi Michael. Thanks for speaking with us. Before we get into your views on the industry, I’d like to touch on your appointment to the role of COO and the current executive team at CARSTAR. From what I understand, this was a transition that was in the works for some time.

Michael Macaluso: The transition was created by Sam Mercanti and Dennis Concordia as a three-year plan that started in 2009, based on the apprenticeship model. Sam recognized a need for fresh thinking and new energy. Today,our executive team consists of M.J. Marshall, VP of Finance, Lisa Mercanti-Ladd, Executive Vice President and Dennis Concordia, our VP of HR. Sam and Larry Jefferies have now moved into different but very important and active roles within the organization. The executive team meets once a week for strategy and action plans, and we’re accountable for the overall strategic plan to be delivered to Sam. I meet with him regularly to make sure we’re delivering value to all our partners and we meet our strategic goals.

CRM: You mention that the transition was a three-year plan.

Could you share the details with us?

MM: In the first year, we were brought onto the executive team, but only to observe and learn; I call it strategic listening. In the 32 collision Repair collisionrepairmag.com

second year, we worked together and were full voting members.

In the third year, the senior staff stepped back and observed us and coached us through our decision making process. It’s worked well. We have wisdom and experience we can tap into, but also the ability to move forward with different thinking and new approaches.

CRM: In your view, what are some of the biggest challenges facing collision repair facility operators?

MM: Our industry is in a time of change, but with change comes great opportunity. That opportunity will only come to those that embrace it. In general, there are two new dynamics causing change within the industry today, and that’s procurement and consolidation. Procurement principles have driven change within our business that has created a “new normal” in everyday collision repair. It has driven the need to be more efficient and to have a stronger relationship with your insurance partners. There’s been a lot of consolidation across the entire value chain. Understanding these two dynamics is necessary for anyone who intends to succeed in our business. To put it in the simplest terms, you have to be the best. Not just be best-in-class, but define best-in-class.

EXECUTIVE VISION

There’s an imbalance in the supply-and-demand of collision repair right now. There’s clearly too much supply on the collision side. Until that balances out, we’re going to continue to have especially challenging times. It’s important to remember that although there are a lot of challenges, they are not unique to us. Many industries, including the airlines and the food industry are facing very similar challenges.

CRM: What’s the best way to deal with those challenges? What can our readers do to try and make sure their shops are among the ones that survive?

MM: It comes down to strategic planning and execution. It’s my philosophy that performance and collaboration are what’s going to make your store rise to the top and succeed. Performance has to be there, and it has to be high, but it’s not enough. We need to collaborate with our insurance partners and with the

Michael Macaluso, Chief Operating Officer of CARSTAR Automotive Canada.

“

There are two new dynamics causing change within the industry today, and that’s procurement and consolidation.

Understanding these two dynamics is necessary for anyone who intends to succeed in our business.

-Michael Macaluso

industry through organizations like AIA and CCIF. We need to collaborate with everyone in the supply chain, because industry challenges require industry solutions. It’s only through collaboration that we’ll actually get there.

CRM: This is your first time at IBIS, the international gathering of some of the collision repair world’s key thought leaders. Has this helped to change your perspective?

MM: One thing I did notice about IBIS, and I’ve noticed this about conferences here as well, is that there are very few managers under 40. If we’re going to ignite the passion of the industry, we need young people to help bring us forward for the next 20 years. There’s a lot of focus on ensuring we have young technicians come through the system and that is critical, but we need to attract young talent at the executive and management level as well. CRM august 2013 collision Repair 33

Human resources

You might be “paying” your employees more than you think.

Hand A in the

Till

By Lloyd Manning

Are your employees stealing from you?

stu dy c on du c te d a fe w y e a r s a g o by D e l oi t t e Haskins indicated that 25 per cent of employees steal from their employers all the time, 60 per cent now and again, and 10 per cent never steal from anybody.

The Wall Street Journal has said that 75 per cent of employees steal at least once, half of them twice or more. Although these are U.S. statistics the same thing is happening in Canada. Failing to properly attend to the mundane tasks of instituting proper controls makes all shops vulnerable.

Some employees will steal from you by way of outright theft of money, embezzlement, conversion, false invoices, check forgery, theft of supplies and inventory, pocketing suppliers’ rebates, personal use acquisitions, phantom payrolls, se-

34 collision Repair collisionrepairmag.com

cret commissions, misappropriations and stealing time by devious methods. With today’s technology it is easier to steal than ever before. However, it’s not just money that goes walking out the door in staff pockets. Do you seem to run short of materials a little bit before you think you should? There might be perfectly innocent explanations for this. Or one or more of your staff may consider a couple of boxes of sandpaper for their home garage to be a perk. These thefts cause a financial loss to the company, but many people do not really consider them stealing. It is theft, of course, but they may not see it that way. People who would never steal money will willingly walk off with all sorts of supplies without giving it a second thought.

Why do some employees steal money, though? It’s for many reasons. Many

Human resources

just want the money. With others it ranges from covering gambling losses, a drinking or drug habit, greed, feeding a spouses’ habit, exotic vacations, a new car, to pay debts and so forth. Other than promoting themselves a raise in pay and knowing they can get away with it, with some, it’s for no particular reason. There’s a little larceny in all our souls. It is not whether employees steal, just how much.

It’s all about lack of controls, negligent scrutiny, being too reliant, trusting too much, or providing the right set of circumstances on which many will capitalize. There’s something called the Fraud Triangle: – Opportunity (vulnerabilities in the system) Pressure (I need the money), Rationalization (it’s only a small amount, I deserve this extra, the boss is making too much money on my back and everyone else is doing it).

As the amounts per incidence are usually not that great they are easy to overlook. The police seldom get concerned and charging an employee is seldom worthwhile. Often it is best to just fire the employee and write the loss off. No matter what you do, the money is gone.

Financial fraud comes in two distinct categories, on book and off book.

On book frauds can be categorized as skimming from customer billing, check tampering, theft of merchandise and supplies, etc. This is embezzlement after it has entered the system and has been recorded. Off book fraud involves the theft of incoming cash or supplies before it is recorded. This would include unrecorded sales, billing a friend for a minor repair but making a major one, understated sales, no record of money coming into the business and receiving kickbacks from suppliers and customers, etc.

Whether it is on or off book, even with the most stringent of controls there is no foolproof guarantee that employee theft will not occur. Still, it goes a long way towards heading off the problem. You must train yourself to recognize the indicators of internal fraud. Trusted employees will invariably figure out your weaknesses and some will exploit them. To prevent theft you must determine and rectify your areas of vulnerability. Be proactive – not reactive.

There’s an old adage that says “No one takes advantage of you without your

permission.” This applies as much to internal theft as it does to inter-personal relationships. In many collision repair shops profit would be higher were fraud less, which can be accomplished by eliminating your permission. Innovation and new technological advances enter the picture, as does the simple platitude of “I deserve more.” Once caught, and your case is provable, fire the dishonest employee on the spot. Trying to place safeguards to prevent this person from repeating the offence is fruitless. He or she will find other ways to steal. Never again can you really trust this person.

There are no small frauds, only those that have insufficient time to grow.

Here are a few tips on how you can prevent employee theft: • Control all monies coming into and leaving the shop. It is a good idea to receive bank statements unopened.

Search for suspicious entries, or entries you know should be there but are not.

• Reconciling changes in inventory with invoices for incoming shipments, and work orders for repairs made and counter slips for sales.

Account for salable merchandise inventory separately from supplies.

Supplier kickbacks and favours to a senior employee are common. In other cases it’s not pocketed discounts as such, but unearned or unwarranted supplier paid for perks.

• Maintain a running count of inventory and supplies of all types. They can fly away by themselves. Only buy as needed and always match invoices with deliveries.

Once fraud is suspected, as even the most vigilant of thieves leave tell-tale

traces, conduct a thorough investigation.

Just in case you are wrong, at this point do not involve anyone else, the police or other staff members. Consider the possibility that it was not theft but a legitimate mistake. If bringing in the police, since you lose all control over the investigation, the evidence must be overwhelming. If falsely accusing someone you could be liable for damages.

I nv i t e w h i s t l e b l o w i n g w i t h t h e assurance there will be thanks, not recrimination. Meet with the employee to so he or she can respond to the gathered evidence, elicit an explanation, and then determine if there are mitigating factors that need further investigation. Base the conversation only on verifiable facts, not suppositions or innuendos. Keep accurate records of the conversation, who said what about what, and particularly note the employee’s justification to defend or support his/her actions. Ensure that you conduct a thorough investigation and obtain all the facts. Then assess your internal controls and procedures to prevent this from reoccurring One of the greatest challenges when you suspect fraud by a staff member is accepting and facing up to it. When you have employed someone for a substantial time you may regard this person almost as part of the family. And, after having been such a good boss for so long you don’t believe that any family member would ever steal from you. This encourages you to be less perceptive. However, it is proven that the more senior the position the greater the median loss. There are no small frauds, only those that have insufficient time to grow. Time and time again what started small has snowballed.

You cannot watch everything and cannot be constantly looking over everyone’s shoulder, but you can give the appearance that you are making frequent spot checks. Trust God but check out everyone else. If you leave opportunities they will be taken advantage of. CRM Lloyd Manning is a semi-retired business writer. His newest book: Winning With Commercial Real Estate – The Ins and Outs of Making Money In Investment Properties is available online from booklocker. com or Indigo-Chapters. He can be reached at lloydmann@shaw.ca.

august 2013 collision Repair 35

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tech talk Ensuring everyone is on the same page is needed when creating or following Standard Operating Procedures.

Standardizing Collaboration

Mangement, employees should work together when constructing SOPs.

By Andrew Ardizzi

O

ne of the keys to a well oiled, f unc tional business is to streamline its operations and ensure everything runs as smoothly and efficiently as possible. Where turnaround times are concerned in collision repair shops, having any inefficiencies combined with large numbers of claims can create a bigger mess than there needs to be. That’s where standard operating procedures (SOPs) come in.

“As a network it is imperative to make sure everything is done in a consistent and repeatable way,” says Jay Hayward VP of Operations at CSN Collision & Glass.

“Standardization is necessary to make sure everyone is on the same page.”

CSN Collision & Glass has over 280 loca-

tions across Canada, which Hayward says makes it challenging yet necessary to develop SOPs in order to get everyone moving and working in the same direction.

“We have SOPs at the corporate level, and we also have very strong SOPs at the shop level,” says Hayward. “At our shop level, for example, the check-in of the customer and reviewing of prior damage on a vehicle to ensure everything is documented and agreed upon is critical to avoid any potential problems after the fact.”

Hayward says having SOPs like CSN Collision & Glass’ help facilitate clear and honest communications and expectations in an effort to create a consistent customer experience.

Dave Miller, president of Fix Auto Abbotsford—and seven other locations

across B.C. and Alberta—says it’s integral to follow your SOPs, as one misstep could set the order back, and further backlog other orders coming in which will only jam up the workings of the shop’s flow as a whole.

“They’re everything. If you skip one step, you’re going to throw a problem into your production,” Miller says. “People need to follow and adhere to them always. Everything falls apart if you don’t.”

One of Miller’s SOPs at Fix Auto Abbotsford is to focus on wait times, and to alleviate that they check everything upfront with the customer so both they and the shop know what the job entails. It also has great benefit for the shop itself.

“There’s a key to it,” he says. “If you do everything up front and make sure your august 2013 collision Repair 37

tech talk

estimates, your parts and that everything you’ve done is thorough and accurate, when the vehicle goes into production it’s ready.”

The question is, though, how do you implement them? Steve Trapp, Program Manager at DuPont Performance Services,

says the key is to make sure that when you’re designing SOPs, that the employees are part of the process as they’re the engine that drives everything.

“The key is they have to be part of the process,” Trapp says, feeling the best way

four steps Steve Trapp says there are four steps that are necessary to not only implementing standardized operating procedures (SOPs) in the workplace, but for updating them as well.

Development Whenever you and your employees design SOPs, you need to work together to identify the key focus. It’s crucial to ask yourself and your employees what the issues are facing the shop. It’s important to identify aspects of your shop that are running well (value-added activities) in contrast to non-value added activities.

When designing SOPs, you need to ask whether the SOP will enhance shop efficiencies, or allow it to maintain its present functionality. Secondly, identify the core problem—inefficiencies—and figure out how to rid the shop of labour waste.

“What should you focus on? The things that offer the greatest opportunity to make it better,” says Trapp. “The big thing to look for is where the waste is in your process and what’s going to have the biggest impact on profitability if you fix it.”

Define A Quality Standard Once management and employees are sitting down and talking, both need to define a basic, founding standard of quality. Figuring out what that standard is and how you plan to reach it extends from noting where shop efficiencies rest and how you plan to address them. Having your goal in mind, defining standards helps you to get the process moving forward. Talk with employees, build the standard together and it will work.

It’s all in the details Having continuous meetings with staff to identify what is or isn’t working will help you identify the functionality of your SOP based on employee feedback. It’s important to keep in mind though that the focus of meetings should be identifying where the process is failing, not where an individual might be falling short. These meetings should be all about figuring out how to make the shop run as smoothly as possible. Map out the current state of the shop together and figure out what’s working or what needs changing. Identify how the customer will benefit from altering the shop’s process. Have them focus on where the waste is in their workings and guide them towards defining a way to improve it.

Pilot, Test, Audit, Repeat SOPs need to be forever evolving; constantly reassessing them helps you to continually keep the flow of your shop in mind to ensure the customer’s core experience is at its highest point. SOPs can’t be theoretical and must be put into practice to understand where they work and where they fall short.

“The idea here is that we’re going to pilot and then adjust as necessary,” he says.

As a rule, Trapp says an easy formula to follow when composing and implementing SOPs is to plan them, check them and then adjust them to fit the realities of your shop.

38 collision Repair collisionrepairmag.com

to involve technicians in the process is to give them input in designing SOPs. “If they write it, they’ll follow it because they can understand it.”

Hayward says the best people to build SOPs are usually the technicians who understand the realities of the shop floor.

“I truly believe it starts with the staff.

They have the experience and know-how already, and generally do not respond as well to mandated SOPs from management that they did not have input on,” says Hayward, who feels collaboration between management and technicians is essential to designing SOPs. “I wouldn’t have it any other way. Every time we have ever implemented any type of process, the best results always came from collaborations.”

Hayward feels all parties need to be committed to it, and when commitment wanes, it slows down the technicians’ ability to provide the results required for success.

Hayward is careful to note however that in the beginning, SOPs can actually upset the shop’s efficiencies and disrupt its flow.

But once everyone buys into them, it becomes routine.

For Trapp, shop flow is everything – it’s the goal of the SOP. He says having SOPs in place satisfies a person’s own need for structure and order, helps improve technician efficiency and by extension makes the shop run more smoothly by decreasing turnaround time for repair orders.

“More flow means more work, which means more money. Flow is better enabled by having less cars on the premises,” says Trapp. “Do the assigned jobs before considering new jobs, and ensure the flow of the cars out of the shop to limit the number of vehicles in the shop at a given time.”

Trapp offers a simple example of how developing job specific SOPs can create efficiencies, simply through keeping the shop organized. Given the importance of tools for any repair order, making sure specific tools are where they’re supposed to be and are stored in an organized way can’t be understated.

“Using the appropriate tools make efficiencies in the repair process,” Trapp says, noting that the SOP for tools use should also be specific and concise. “The SOP board shouldn’t just say pull out your 6-inch D.A., it should say, ‘ pull out the appropriate size D.A. for the job.’”

He says using the incorrect tool—a larger sized D.A. in this case—will create production inefficiencies, where the wrong

tech talk

sized tool was used for a given task. The most important thing is efficiency and perfection at each step of the process to make sure everything runs smoothly and each vehicle repair is turned around and back in its owner’s care.

Ultimately, no matter what the SOP is, Hayward says they need to be reflective of shop realities—what’s actually occurring inside the shop. They can’t be dictated from management, nor can they be treated as unchangeable commandments. Understanding first and foremost that they need to evolve to fit present-day realities, Hayward says everyone from management down needs to be committed to improvement.

Trapp says that by working together, and staying committed to improvement, effective SOPs can be easily developed. It all comes down to communication between management and employees so both parties can better pinpoint areas of concern.

“Which of those things do we need to change and which is going to have the biggest impact?” Trapp says.

Where efficiencies are concerned, Trapp says to consult the employees about where they waste and identify opportunities to address it to increase flow. From there, once an SOP is designed, all that’s left to do is implement it and test it.

“Are you always going to hit a homerun?

No. You may need to adjust it,” he says.

Trapp adds that while there is no science behind SOP development, placing focus on the customer experience and streamlining shop functionality on that principle isn’t a bad place to start.

“Ask what does the customer externally and internally expect from this process,” says Trapp. “If your SOP is not going to meet the standard of the customer, it’s a bad process. SOPs need to be designed around that idea.”

Blueprinting is often a vital component of SOPs, allowing technicians to determine the extent of all damage before other steps are taken.

Hayward agrees.

“Your mindset changes when you focus on committing to improving the customer experience and finding the best way to reach that. Knowing that the world evolves, you’re probably going to have to adapt your processes to ensure those changes are reflected in the customer experience.”

The development—and redevelopment of SOPs—is an unending process. Understanding that no method is perfect and might need tweaking depending on the circumstances, continued development, training, testing and auditing of your shop’s standard operating procedures is important.

Miller agrees, adding it’s crucial to continually manage and be aware of what’s going on in the shop so that when an issue arises in production it can be addressed.

“Our SOPs and mission statement are key,” he says. “We go back to it and preach it.”

Miller stresses that SOPs must always be in development, and that it may take time to develop ones that work for your customers and your shop.

“It takes time to develop and we’ve been working on ours for years and they’ll continue to evolve,” he says.

Yet, once you figure out your starting point, everything else—flow, efficiencies and customer satisfaction—falls into place. Hayward says it’s a matter of constant reassessment.

“You need to document what it is today that you actually do. Right, wrong or indifferent,” he says. “Once you set that baseline, then you start wondering about whether there’s a better way.” CRM

august 2013 collision Repair 39

FUTURE OF THE INDUSTRY

Twists

Turns

Carlo Juco of Brimell Group’s career started in parts design, but changed course for collision repair.

By Hayden Kenez

I

n a different life, Carlos Juco designed custom car parts for high-paying clients in the Philippines. Car enthusiasts would flock to the custom-parts shop where Juco worked, requesting drawings of new parts for their expensive toys. Boasting a bachelor’s degree of science in industrial design, Juco drew designs to match the unique specifications of modified cars and the specific demands of their owners.

His drawings were then adapted by a tradesman who would reference them in creating a tangible product.

But when Juco left the Philippines for Canada, his career came to an abrupt halt. He soon discovered the university credentials he had earned in the Philippines weren’t sufficient for the same type of work in Canada.

Disheartened but not discouraged, Juco took a part-time job as a dishwasher to cover bills and decided to reassess his career path. He wasn’t prepared to enter university—costing him both time and money he didn’t have—to bring his schooling up to Canadian standards and ultimately reenter the vehicle design industry.

Enter the AYCE employment program.

It’s a pre-apprenticeship agency that trains youth for employment in the collision industry, an industry that already suffers from a chronic shortage of young workers.

In an effort to pair unemployed—or in Ju-

co’s case, underemployed—youth with the collision repair industry, AYCE grooms applicants with basic skills for repair work and then helps them to secure an apprenticeship with partner companies.

The ultimate goal for all parties involved is long-term employment.

40 collision Repair collisionrepairmag.com

Carlos Juco explains Rapid Repair options to a customer at Brimell Group Paint & Collision Center ~ CSN in Toronto.

After seeing AYCE booths at various job fairs, Juco applied for a spot in the program. He was accepted, and training ensued. Once he was adequately groomed for work in the industry, he began an apprenticeship at Brimell Group Paint & Collision Center~CSN in Toronto, Ont.

FUTURE OF THE INDUSTRY

Juco joined the Brimell group at a pivotal point in their history, which ultimately worked to his advantage. At the time, Brimell was looking to diversify and had identified express repairs as a new focal point. As a result, the Rapid Repair program was born, intended to streamline minor repairs in a more efficient and cost-effective manner.

Under the guidance of mentor Richard Marsh, Juco worked his way through the ranks of the business, ultimately heading the new Rapid Repair program. According to Marsh, Juco’s then-recent emergence onto the collision repair scene made him an ideal candidate for the position.

“Juco’s perspective, as he had only recently entered the industry, came without any preconceived notions of repairs that seasoned employees can pick up,” says Marsh. “Since we were looking for someone we could train, he was a perfect fit for the new position.”

On a day-to-day basis, Juco spends much of his time conducting estimates on vehicles that enter the Rapid Repair zone.

Juco drew designs to match the unique specifications of modified cars and the demands of their owners.

This initially proved a daunting task for Juco. “It was a pretty tough position at first,” he admits. “But repetition is the key to success.”

Juco soon became accustomed to conducting estimates quickly and accurately, adding yet another skill to his already impressive repertoire.

Although Juco’s skill set from his previous career as a parts designer in the Philippines wasn’t entirely transferrable to his new position in the automotive repair industry, his zest for learning and commitment to quality have certainly paid dividends.

“The most rewarding aspect of my job is when I see the customer satisfied with our repairs,” says Juco. “Seeing their reaction to an excellent repair is the best reward for me.” CRM

Welcome to Future of the Industry, Collision Repair magazine’s feature profiling young up-and-comers in the industry. Is there a young person in your shop who goes above and beyond in attitude and passion for the business? Let us know and you could see them profiled in an upcoming issue. Please contact Mike Davey at 905-370-0101 or via email to editor@colllisionrepairmag.com for more information.

August 2013 collision Repair 41

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products

powerful pull Hydraulics, power, torque and technique get the job done.

By Avi Patel

Structural repair equipment is among the most important in a collision repair centre. Technicians must have access to the right equipment to ensure the vehicle is returned to pre-accident condition. Even more important than this, the technician must ensure that all of the vehicle’s safety features are returned to their proper functioning.

While the increasing use of high-strength steel means that repairers often have to turn to other techniques , the traditional methods still keep their place in the modern collision repair facility.

As always, please research any and all potential purchases thoroughly. Inclusion of a product in this section is not intended as an endorsement of these systems by Collision Repair magazine or its staff.

Chassis Liner

Car-O-Liner

Chassis Liner’s new 18foot Profit Puller Plus is a rounded bed lift with wheel-less towers and a portable design to fit a 12-foot by 20-foot stall with an 8-foot ceiling.

According to Chassis Liner, the new 18-foot Profit Puller comes with 10-tons of pulling power and two towers, allowing 360-degree pulling and two pulls per tower thanks to the unique two-slotted jaws on each tower.

The towers also have laser-cut chain tie-down slots along the outside, centre, and inside of the treadways which the company says will allow for hundreds of tie-down possibilities for quick anchoring. Chassis Liner says the rollers are easy to adjust for exact pulling height, and the adjustable Measure Rite unibody tie-downs with five different height settings with drive-over bases allow for faster setup. It also features clear floor wheelless technology with Chassis Liner’s roll-a-matic track giving the towers their mobility. Other features include a removable front cross member and a 15-ton heavy duty ram on lift with air pump.

Additional options available from Chassis Liner include an extra slotted tower and a variety of adapters and jacks suitable for many different situations.

Car-O-Liner’s BenchRack combines drive-on capability with a hydraulic lift and removable ramps that can be tailored specifically for any collision repair facility. Also included on all BenchRack models is a new tilt feature. Car-O-Liner says this new feature makes it easier to load vehicles when there is limited approach space in the shop. According to Car-O-Liner, the universal clamp and bench mounting combination provides the strongest no-slip holding capacity for unibody vehicles.

Down pulls can be made with the D91 support system component and the loading trolley allows you to load and secure immobilized vehicles. Removable ramp sections lift out to allow access to the vehicle.

When repairing minor damage, the vehicle can be anchored using Car-O-Liner’s B631 chain holders. Side support system locks parts in place when pulling, or holds them in place during welding operations. 10-ton Draw-Aligners pull from almost any angle around the vehicle.

Car-O-Liner says all B e n c h R a c k s s h a re a single purpose: they allow for faster set-up times, repairs and inspections to give you more productivity and more profits.

> www.chassisliner.com

> www.caroliner.com

18’ PRofit puller plus

benchrack

august 2013 collision Repair 43

products

Star-A-Liner

Spanesi

Star-A-Liner has been manufacturing and selling structural repair equipment throughout North America for over 30 years. The newest entry to the field from the company, the Cheetah Floor Rack provides the convenience of a drive-on floor rack. The unit itself is 12-ft. with 21-inch treadways and a 6-ft. tall tower. The hydraulics system provides a robust 10-tons of power, powered by a 100 psi air compressor.

The complete Cheetah Floor Rack system consists of a 6-foot portable pulling post, a hydraulic pump, hose and ram. The unit also includes two 8-ft. chains, two 12-ft. chains, two 12-ft. treadway sections, a set of four pinch weld clamps and 14 anchor pots.

The drive-on convenience of the Cheetah Floor Rack is enhanced by the two portable ramps included with each system.

The weight of the Cheetah Floor Rack system is relatively light at 360 lbs. Star-A-Liner provides a number of optional accessories to enhance the Cheetah Floor Rack system, including a number of tool boards and a wide selection of alternate and additional towers, including double p u l l t o w e r s a n d ro u n d towers with collars.

The Multibench-12 from Spanesi is an electro-hydraulic lift that the company says is suitable for lifting any type of motor vehicle, with a maximum capacity of 6600 lbs. (3,000 kg). The Multibench-12 raises the vehicle directly on its wheels.

Spanesi says that technicians can straighten vehicles through 360-degrees by the pulling tower and the supplied Fast Clamps, which can be used without wheel stands or lifting the vehicle from the ramps. Spanesi says these features help to provide the Multibench-12 with the fastest setup in the industry. The company also says that adding a TOUCH measurement system from Spanesi transforms the Multibench-12 into a convenient station for diagnosis and repair.

The system is floor mounted with a very low profile, measuring just 4.25 inches high, with no need for external ramps. The unit can lift up to a height of 57.5 inches, providing technicians with the ability to raise the vehicle to a convenient working height.

Spanesi also offers a wide range of optional equipment to expand the capabilities of the Multibench-12.

cheetah

multibench-12

> www.staraliner.com

> www.spanesi.com

Car-O-Liner

Wedge Clamp

According to Car-O-Liner, new car models and new materials require new ways of measuring, aligning and repairing crashed vehicles and this ethos has informed the design process behind the new EVO. It is a universal system for anchoring, measuring and holding. Modularity is at the heart of EVO. Each component can be assembled with the others in a multitude of configurations.

There are three EVO systems. EVO 1 is for basic anchoring. EVO 2 is for extended anchoring and EVO 3 is for holding and fixturing.

According to Car-O-Liner, the three EVO systems can be combined to handle every imaginable anchoring, holding and fixturing situation. The EVO system is integrated with Car-O-Liner’s data and software to support the complete vehicle repair process, and the company says the combination of the EVO system and the company’s Car-O-Tronic Vision X3 replaces the need to rent or buy a set of fixtures for each vehicle. The EVO system works well on its own, but Car-O-Liner says the maximum benefit can be derived by combining it with the Car-O-Tronic Vision X3.

Wedge Clamp’s EZE Tie Down Anchoring system is designed for fast, light pulls and express production bays. Wedge Clamp says that as there is no need to lift, the setup for light repairs takes 15 minutes or less. According to Wedge Clamp, full-frame anchoring means it’s the ideal system for light trucks and ladder-frame vehicles, quick pulls on radiator supports, sheet metal alignments, and door posts, and being chainless makes the system fast and versatile for the majority of repairs. The 4-point securing provides a stable base for work, and the alloy castings come with a 10-ton rating.

Wedge Clamp says its patented 2-way swivel clamps accommodate virtually any frame shape or direction. Wedge Clamp says the EZE Tie Down system was developed specifically to meet the demands of shops and to increase productivity, job quality and technician efficiency, allowing technicians to complete light repairs and finishing metal work in a single bay area in the shortest time possible.

> www.car-o-liner.com

> www.wedgeclamp.com

evo system

44 collision Repair collisionrepairmag.com

EZE Tie down anchoring

products

Chief Automotive Technologies

Chief Automotive Technologies

Chief Automotive Technologies says its F.A.S.T. Anchoring System accommodates most of today’s pick-ups, SUVs and full-frame vehicles. According to Chief, the F.A.S.T. Anchoring System is easy for technicians to learn and use, making it easy to measure and pull vehicles with great precision. The company says the F.A.S.T. Anchoring system’s fast setup provides technicians and the collision repair facility with increased productivity. The system also gives technicians the ability to isolate the vehicle frame from the suspension, which Chief Automotive Technologies says will help make diagnosis and repair fast and simple. There are three available models from Chief. The first, 105-200033, is the complete F.A.S.T. Anchoring System. The second, model 105200030, is the F.A.S.T. Upgrade Package for technicians with an existing F.A.S.T. Anchoring System. The third, 105-200043, is the F.A.S.T. Anchoring System without adapters. The company says the system is adaptable to all Chief pulling racks and most other frame straightening systems. Optional accessories include 3-inch riser bars, narrow rail vise attachments, turnbuckle assists and more.

Chief Automotive Technologies says its Goliath rack will ensure you never have to turn away business due to an undersized rack again. At 22-feet long and 92-inches wide, the Goliath is the longest and strongest passenger car and truck pulling system Chief Automotive technologies has produced. The system is designed to handle the very largest pick-up trucks, extended cab dualies and SUVs. The Goliath uses Chief’s patented Sure-Lock towers, providing 10 tons of pulling power at the hook. The roller bearings raise off channel when the tower is locked and bear no weight during pulls. Chief says this will help provide years of maintenance free operation. Other features of the Goliath system include a lift capacity of 12,000 lbs., simultaneous multiple pullings and 360-degree capabilities. The Goliath also offers variable height adjustments, a self-leveling deck and the ability to gang tower anywhere. Key components are powdercoated for durability. All functions are controlled from a single hand-held pendant. Goliath is available in two, three, or fourtower models.

F.A.S.T. Anchoring system

> www. chiefautomotive.com

goliath

> www.chiefautomotive.com

Wedge Clamp

Spanesi

QP5T Mini Puller is the newest addition to Wedge Clamp’s family of structural repair systems. The QP5T Mini Puller joins Wedge Clamps other pulling towers, the 15-ton Monocoque tower for heavy-duty pulls and the more economical 10-ton EZE Roller. According to Wedge Clamp, the system is meant for common light-duty pulls up to 5-tons. The QP5T Mini Puller offers dual independent pulling capability, which the company says allows the technician to pull continuously from two points at the same time, or switch from a double to a single pull. The QP5T Mini Puller is Wedge Clamp’s smallest tower, but it doesn’t lack for power, offering a pull of 50 cm in one continuous stroke. The pulling height ranges from as high as 7 feet (213 cm) off the ground to as low as just 10 inches (25 cm) above the floor. An optional downpull kit accessory from Wedge Clamp will allow the operator to pull from underneath the vehicle.

Designed by the company’s namesake himself, Orazio Spanesi, the Supe r s t a r u n i v e r s a l j i g i s a holding and fixture system meant to be used for the majority of repairs.

According to Spanesi, the Superstar is a universal jig that can be used in repairs for all commercial and industrial vehicles on the market, including future vehicles. Spanesi says its universal jig solves common technician problems by allowing the user to avoid heavy weights, mount and de-mount heavy cross members, avoid problems with jig positioning, and avoiding costly rentals for jigs for new models. Spanesi says the same kit can be adapted to any bench and can be used in the repairs for vehicles of any make and model, including cars from BMW, Mercedes, and Nissan which don’t have a pinch weld and would otherwise require special clamps.

Spanesi says the Superstar universal jig is also very useful for vehicles with plastic coverings, side skirts, and spoilers for quick demounting.

> www.wedgeclamp.com

> www.spanesi.com

QP5T Mini Puller

superstar universal jig

august 2013 collision Repair 45

GLOBAL VIEW

Inspiring Change

Future models for success at IBIS 2013.

By Mike Davey

Engaging sessions and presentations keep the 380 repair professionals from around the globe who attended IBIS 2013 riveted throughout the course of the Symposium.

Y

ou can inspire change using a “relate, reframe and repeat” leadership style, according to Paul Gange, President/COO of Fix Auto USA. Gange spoke on “Getting the best out of entrepreneurs” at the International Bodyshop Industry Symposium 2013. This year’s IBIS saw 380 of the world’s most influential accident repair industry professionals, representing 35 countries, descend on Montreux, Switzerland to do business, share knowledge and network. Collision Repair magazine is the Canadian Media Partner for IBIS. “Those employees who are engaged will drive the strategy forward and those who have already quit, will quit,” said Gange.

Highly respected across the globe, the theme for this year’s event was “Future

business models: strategies for success.”

Offering a truly diverse range of sessions, IBIS Conference Director, David Lingham, told delegates, “The content of IBIS 2013 has been inspired by many people, events and countries. Over these two days we are going to be travelling across the world.”

Desmond D’Silva is the CEO of Assured Automotive, Canada’s largest corporately owned multi-store operator (MSO). A frequent attendee at IBIS, D’Silva notes that IBIS can help develop a global viewpoint.

“It was interesting to see that, throughout the developed world, the MSO model has shown the most growth,” he said. “I know it works for us in Canada, but no matter where you go, it’s the same thing. The insurers are looking for consistency and self-management, and we can deliver that.”

46 collision Repair collisionrepairmag.com

Michael Macaluso is the Chief Operations Officer for CARSTAR Automotive Canada. This was his first time attending the international symposium.

“It offers great networking opportunities and really good content. You get to see what’s happening in both emerging markets and more mature markets like Germany and the U.K. The different regions bring different perspectives on problems they’ve had and solutions they’ve found. It’s good to see where Canada fits in the puzzle,” said Macaluso.

A live link-up to the U.S. to speak with Solera’s founder, Chairman and CEO, Tony Aquila also formed part of the program.

Aquila told delegates, “We are seeing the BRIC (Brazil, Russia, India and China – ed.) markets move from emerging to

GLOBAL VIEW

IBIS provides a number of opportunities for social events and networking. From left: Lara Leal, Steve Leal of Fix Auto Canada, Bob Kirstiuk of Advantage Data Systems, Nickole Macauley, Jennifer Randles and Dave Hodges of Fix Auto.

IBIS Moderator David Lingham.

This year’s IBIS saw 380 of the world’s most influential accident repair industry professionals descend on Montreux, Switzerland.

From left: Nick DiLuca of CARS Auto Collision~CSN, Darryl Simmons of Collision Repair magazine, Flavio Battilana of CSN Colision & Glass and Michel Charbonneau of Carrossier ProColor.

Michael Macaluso of CARSTAR and Bob Kirstiuk of Advantage Data Systems.

IBIS attracts stakeholders from the highest levels. From left: Sam Mercanti, CEO and President of CARSTAR Automotive Canada; Brock Bulbuck, CEO of Boyd Group; Desmond D’Silva, CEO of Assured Automotive.

evolving. Brazil is showing an incredible immunity to the global economic crisis and continues to grow at a fast pace.”

An insight was given on the Chinese market by Xiaolong Peng, General Manager of Longco and Karen Fiest, President of KerenOr Consultants. The session highlighted the complexity of the Chinese auto repair market which is government regulated and based on a class system.

“Even so, there are many street repair shops which often repair and paint a vehicle in the street,” said Xiaolong. “Networks will become more popular in the future. Insurers are asking for it.”

The symposium also included presentations from Brock Bulbuck, President and CEO, Boyd Group Income Fund; Chris Denison, founder, Ingenin; Rene

Lang, Vice President Sales Management Distribution Europe, BASF Coatings; Nina Nyman, Global Marketing Manager, Mirka Finland; Aidan Quinn, Claims Process and Strategy, Bristol West Insurance; Richard Steer, Managing Director, JCA Coatings; Craig Summers, Acting Head of Motor Claims, Suncorp Group, and Terese Wood, Executive General Manager, Personal Insurance Claims, Suncorp Group.

Official partners for IBIS 2013 are 3 M , Au d a t e x , A k z o N o b e l , Au t o mechanika, BASF, Enterprise, Innovation Group, Quindell Portfolio plc and SunCorp Group.

IBIS 2014 will take place in Barcelona, Spain on May 19 to 20, 2014. For more information, please visit ibisworldwide.com.

A truly global viewpoint is one of the great strengths of IBIS. Drawing on the expertise of the collision repair’s key influencers and thought leaders from around the world provides IBIS and its attendees with perspectives that are literally impossible to find otherwise.

As many of its frequent attendees point out, it is often the case that the challenges we face here have already been dealt with by others across the sea. When they get it right, we can copy their solutions. When they get it wrong, we have a head start on figuring out what not to do.

august 2013 collision Repair 47

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AUTOMOTIVE

FINISHES

Trends

The

Evolving

Market Expansion and consolidation continue to spur multi-shop operator growth.

By Vincent J. Romans

This article comes to us from Vincent J. Romans, principle of The Romans Group, a consulting firm based in the U.S. The company releases an annual report entitled “A Profile of the Evolving Collision Repair Marketplace,” dealing primarily with the situation south of the border. The first section of the article below offers a peak into the world of our brothers and sisters in the U.S. market. The second section outlines general trends we can expect to see regarding multiple store operators (MSOs) and multi-location network operators (MLNs). While drawn from research conducted in the U.S., there is every indication that these trends will continue in Canada as well. – Mike Davey

W

e have been researching, tracking, analyzing and interpreting data and trends involving the collision repair industry and multiple location operators, MLOs or MSOs, since the first round of industry consolidation began during the late 1990s through about 2003.

This first‐round consolidation period saw MSO platform transactions with companies like ABR A, M2, CARA, Car Quarters (Sterling) and Caliber. This consolidation effort eventually lost its momentum for several reasons including: • An overly‐aggressive growth model based on acquisitions that were not properly integrated and a business model that could not be sustained, • Insurers’ less‐than‐enthusiastic adoption of the MSO model with its promised, but under‐developed, operational and performance benefits, • Inadequate multi‐location information, operations and management systems for an expanding and growing enterprise.

In our annual white paper, A Profile of the Evolving Collision Repair Marketplace, we identify and track the $20 mil-

experienced, along with their segment market share, from 2006 to 2011.

The number of MSO companies generating repair revenue greater than $20 million annual revenue in 2011. The marketshare for these organizations relative to all collision repair industry revenur processed during that time grew from 9.1 per cent to 13.4 per cent. We estimate that 2012 revenue processed by the $20 million or larger MSOs/MLO will be about $4.4 billion or larger MSOs within the U.S. along lion or approximately 15 per cent of total with multiple-location network operators, annual collision repair industry revenue. also known as MLNs. The second wave of collision repair inThese MLNs include four franchise and dustry consolidation started in 2010 and has branded network organizations, CARSTAR picked up momentum in the last two years.

U.S., which strategically and operationally Since 2010, we have seen the evolution of two positions itself as an MSO; Maaco; ABRA primary MSO expansion strategies begin to (MSO and franchise); and Fix Auto USA reshape the collision repair industry. (franchise and branded network).

One strategy, focusing expansion within The following charts show the growth existing and/or contiguous markets, is being that these larger MSOs and MLNs have driven by regional MLOs/MSOs such as CollisionMax, Seidners and Car Care Collision Centers.

US Collision Repair Market Another strategy utilized by (Dollars in Millions) national MSO consolidators 2011 2006 Change such as Boyd/Gerber, ABRA and Caliber is centering Total Collision Repair Locations 36,800 45,000 -8,200 expansion within existing Total Collision Repair Revenue $29,475 $30,000 -525 markets coupled with leapTotal Number of $20M MLOs 65 57 8 frogging to new markets $20M MLO Locations using platform acquisitions Total MLO Locations 1,245 959 286 to gain entry.

Total MLO Production Locations 1,125 898 227 With both strategies, % of MLO Production Locations to single-location “tuck ins” are 3.1% 2.0% 1.1% 36,800 Collision Repair Locations utilized, in the form of single MLO Revenue location or smaller mulTotal $20M MLO Revenue $3,951 $2,728 $1,283 tiple location acquisitions, $20M MLO Share of Total Brownfields and Greenfields, 13.4% 9.1% 4.3% Collision Repair Revenue to fill in market gaps. august 2013 collision Repair 49

Trends

2012 Estimated Market Segments

Annual Revenue

≥ $20.0 M MLO/MSO

$4.4 B

Multiple Location Networks- MLN/MSO

$1.5 B

$10.0-$20.0M MLO/MSO

$1.5 B

Total

$7.4 B

Unlike the larger, national MSOs, there have been few regional MLOs/MSOs venturing into new markets. These expansion strategies will continue to influence the direction of consolidation and rightsizing within the collision repair industry, and will result in increased MLO market share in the U.S. The chart below represents four primary MSO franchise and branded network organizations: CARSTAR, Maaco, ABRA (franchise) and FIX Auto. These organizations have historically been viewed as franchise businesses.

Some companies, such as CARSTAR, have positioned and branded their capabilities and value proposition as those of an MSO with geographic scale, a broad range of national, multi-regional and local market capabilities, centralized services, managed KPIs for enterprise performance for owner/operators who actively manage their collision repair businesses.

When combined with the greater than $20 million MSOs and the franchise and branded networks, MLNs/MSOs represent about 18 per cent of the annual repair revenue processed. As with independent and dealer MSOs, we expect this share to continue to grow throughout 2013.

Our early and preliminary numbers for 2013 are reflected in the following chart along with another important segment, those repairers processing $10 million to $20 million annually.

The $7.4 billion total for these three segments represents approximately 24 per cent of the annual collision repair revenue processed for 2012, indicating a fragmented collision repair industry with much upside for further consolidation.

From 2010 to 2012, the merger and acquisition activity for single and multiple– location operators occurred primarily in 16 state markets, seven of which — Illinois, Colorado, Ohio, Maryland, North Carolina, Pennsylvania and Indiana — were associated with the largest single platform acquisitions by Boyd/Gerber

involving True2Form in 2010 and Cars Collision in 2011. The following is a list of the announced MSO multiple location platform acquisitions (two or more) occurring between 2010 and 2012.

MSO Multiple Platform Transactions 2010-2012 Boyd/Gerber True2Form, Cars Collision, Master Collision, Pearl Auto, Big Sky, Collision Works, Auto Crafters, Recovery Room Service King B&B Collision, Alamo, Auto Body World, Collision Specialists, Wade, Express Auto Body, Auto Body America Caliber 911 Collision, Crown Collision, 101 Collision, Hi Tech Collision ABRA Bradshaw, Collision Solutions, Collision Plus Cooks Collision Holmes Auto Body

nationally recognized independent, franchise and hybrid MSOs. The map at right shows which states had the most independent MSO multiple‐location platform merger and acquisition activity from 2010 through 2012.

Determining which companies will ultimately lead the industry is an evolution and part of a longer-term continuum involving four active and simultaneous industry-changing phases: contraction, consolidation, convergence, and constructive transformation. The need for constructive transformation has become greater due to the acceleration of MSO platform acquisitions in 2010 through 2012, as well as the anticipated 2013 acquisition activity.

Industry contraction and consolidation facilitates an environment where companies converge across both similar and different market segments through mergers and acquisitions. It is especially prevalent with MSOs as seen in both the map and the merger and acquisition chart. Contraction, consolidation and convergence ultimately give way to the inevitable and required phase of constructive transformation.

Constructive transformation within the consolidating and converging collision repair industry involves the necessary heavy lifting associated with the integration of different organizations, business platforms and cultures. It involves determining the best suited or MSO-preferred estimating management system, technology infrastructure, brand transition, personnel and organizational structure for the merged enterprise and its morphing culture, while simultaneously managing its growth and expansion.

Absent this integration transition phase of construction transformation, MSOs

In 2012, merger and acquisition activity for multiple‐location platform transactions took place in 10 states, involving 17 independent collision repair organizations with 128 locations. These platform transactions shifted approximately $300 million in revenue during 2012, an average revenue of $2.35 million per location acquired. At this time, merger and acquisition activity remains noticeably absent in the upper northeast region, from New Jersey to Maine.

The short‐term profile for exUS Collision Repair Market-2011 including isting and emerging MSO models Franchise and Branded Network (FBN) today includes the following: (Dollars in Millions) • Independent, dealership and Total Collision Repair Locations 36,800 franchise multiple‐region platTotal Collision Repair Revenue 29,475 form MSOs Production Locations • Multiple‐region combined Total Franchise and Branded Networks 906 independent and franchise Total $20M MLO Production MSOs 2,031 Locations, including FBN • Large multiple‐location, single‐ Total $20M MLO Production Locations, including 5.5% market independent and dealFBN, to 36,800 Colliision Repair Locations ership MSOs Revenue • Medium size multiple‐locaTotal Franchise and Branded Networks $1,342 tion single market indepenTotal $20M MLO including FBN $5,293 dent and dealership MSOs Share of $20M MLO including FBN to The longer‐term future 18.0% Total Collision Repair Revenue will eventually include some

50 collision Repair collisionrepairmag.com

trends

AK

run the high risk of failing to assimilate the acquired companies. This failure is manifested through poor operational performance, lower customer satisfaction and the under achieving of KPIs that eventually provide lower competitive peer rankings related to insurance company DRPs. An unintended consequence would be a reduction in wholesale business, which is the lifeblood of an MSO’s planned revenue and market share position.

When properly executed, constructive transformation delivers both the plan and the promise for MSOs that aggregating capacity can bring accretive financial and operational value, market share dominance and higher business valuation. It also allows the MSO to consistently deliver sustained performance and output, reflecting an increasing benchmark of competitiveness that the MSO leverages for its own advantage. During constructive transformation, MSOs lead and manage with a strategic mindset that embraces both the opportunity and risk associated with new market entrance and expansion while leveraging market uncertainty and ambiguity to their advantage, rather than avoiding it.

In today’s competitive and dynamic market, MSOs know they shouldn’t go it alone. It’s important to leverage a strategic partner and alliance ecosystem with a broad number of constituent groups including strong and loyal customers, supportive and flexible suppliers, competitors for benchmarking progress, investors and business partners. These entities become integral parts of the collaborative brain trust. It is through this constructive transformation that successful MSOs will secure their future.

The collision repair landscape will continue to evolve, likely causing a continuation of repairers exiting the business or become MSO merger and acquisition targets. Some of the prevailing conditions that support this industry evolution include: • Continued contraction, consolidation, convergence and constructive transformation of all auto physical damage segments associated with the collision repair industry • A lackluster economy with uneven and slow growth, prompting repairers to consider exit or strategic alliance options that include being acquired or joining a franchise MSO or branded network • Globalization and U.S. market entry of foreign companies in the collision

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repair, property and casualty insurance, and numerous auto physical damage industries, creating both horizontal and vertical channels of distribution influence and disintermediation within the collision repair and property and casualty insurance industries.

Private equity interest and focus on increased investments in MSOs and various auto physical damage segments Insurance company strategies related to cost reduction and the adoption of fewer points of contact with a limited number of multiple‐location operators. MLOs and MSOs are more aligned during this consolidation phase than in the past.

The benefits of insurer DRPs and hybrid model DRPs have been accepted and adopted by the once reluctant and uncertain insurance companies The insurance company DRP claim‐ conversion percentage continues to increase, producing a larger volume of business for the emerging end‐game MSO winners under contract Key performance indicators and peer rankings, coupled with MSO wide-area networks, are becoming the de facto standard used to drive DRP claims utilization and preference for top‐tier MSOs Innovation and risk‐taking by MSOs, prompting a move toward a co-managed or self‐managed vehicle repair model, will require more people and infrastructure, with the expected outcome of less insurance company oversight, involvement and disintermediation Fluctuating and conflicting market trends are reflected in higher gas prices, fewer miles driven, diminished interest

on the part of younger drivers to obtain their driver’s license, broader adoption of accident avoidance systems, nascent car sharing models, and numerousother trends are influencing lower accident frequency and eventually fewer repairable claims in the longer term • Acceleration of aggressive repairer multi‐level selling, marketing and branding of their competitive value propositions and performance to current and prospective wholesale and consumer segments • Development, marketing and implementation of new, innovative services

by MSOs as a competitive advantage that others will not have the ability of the inclination to pursue • Lean production and its business benefits leading to a competitive • advantage and long‐term business sustainability for some MSOs • Hybrid claims management and process models that not all repairers are • willing or able to accept, adopt or maintain • Increased technology requirements, with the associated integration and adoption, and its effect on the evolution and movement toward an integrated electronic claims processing model Any one or just a few of these prevailing conditions would have limited impact.

However, all of these conditions are simultaneously in play. As they continue to intersect, their impact will accelerate the business, market, financial and strategic decisions that drive the future direction of not only MSOs, but all constituent groups in the auto physical damage landscape. CRM august 2013 collision Repair 51

PROFIT BOOSTERS

Compact

Larry Pellizzarri and Andrew Harsevoort of Hamilton Group Autobody. As you can see, the lift gives you enough height to completely expose the car’s underbody.

Power The Ikotec lift has a small footprint and big capabilities

By Mike Davey

T

here’s an old saying that good things come in small packages.

To see if that was true, I recently visited Hamilton Group Autobody in Hamilton, Ont. as they tested and used the Ikotec 3000.

The Ikotec 3000 is a single post lift designed to take up as little space in the shop as possible. It’s packs a lot of lifting power despite its small size, and the unit can be used to lift full-size pick-up trucks and SUVs. That it can also easily lift a passenger car goes without saying.

A quick visual inspection confirms that the unit has a small footprint. The base is barely more than the width of a car’s tire.

The real question is whether or not it performs as advertised. After speaking with Larry Pellizzarri and Andrew Harsevoort of Hamilton Group Autobody, I can say with confidence that it does.

“I had a full-size pick-up on it with no trouble, lifting with the trailer hitch attachment,” says Pellizzarri, the staff member at Hamilton Group Autobody who has the most experience with the unit. “There are lots of different attachments for different jobs. You can switch them out in seconds.”

Part of the unit’s strength lies in its versatility. There are over a dozen attachments available. The unit comes standard with a wheel lift. The technician simply slides the unit under the tire, makes sure it’s secure and the lift is ready for action. There are other attachments for straight lifting, such as the trailer hitch attachment Pellizzarri mentions. These can be used to lift vehicles with tires too wide to fit on the standard wheel lift, or simply for when you want to lift the vehicle by a different point.

The various attachments take the Ikotec 3000 beyond vehicle lifting. There are a number of different attachment for holding doors, a hoist crane, an engine hoist and many more applications. Basically, if it’s part of a car that you might want to lift one day, Ikotec has an attachment for it.

Okay, so it has a small footprint and it has the power to lift the heaviest of light trucks. How high does it get them, though?

Power at a point. The unit can handle even the largest pick-ups, such as this truck from Carter Rentals.

Is this essentially a glorified jack? This is a case where pictures definitely speak louder than words. You can see for yourself that it’s easily capable of lifting the vehicle to working height, and beyond.

“You can completely expose the underbody of the car,” says Harsevoort. “It’s great for doing estimates. You can jack the car up

52 collision Repair collisionrepairmag.com

in a very short time and actually show the customer the problem.”

The unit weighs roughly 150 lbs. and is fully portable within the shop environment.

Techs can simply roll the unit to where it needs to be. The wheels on the bottom of the unit are small but very sturdy.

There is one issue with the Ikotec unit that Pellizzarri mentions that shops in Canada should be aware of.

“We blew a few fuses when we first got it,” says Pellizarri. “We’ve got it on its own circuit and haven’t had any problems since.”

According to Conrad Egerter, President of Ikotec USA, this is due to a difference in power supplies between Canada and the U.S. “In the U.S., 20 amp circuits are standard, whereas in Canada a lot of circuits are 15 amp,” he says. “When you lift with the Ikotec, you’re just compressing it for the first 12 inches. For the next 12 inches, you’re lifting the most weight. Higher than that, and the side of the car that’s still on the ground is taking the most weight. During those middle 12 inches, the unit might draw up to as much 15 amps. We recommend having it on the shortest, heaviest cord you can. The longer the cord, the more amperage you’re going to lose. I would recommend a 12 gauge cord, no longer than 25 feet.”

For more information on the Ikotec 3000, please visit ikotecusa.com. CRM

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Tow truck arsonist on the loose in Cornwall, Ontario

By Avi Patel

City Tow and Recovery has had another vehicle torched, six months to the day from the first tow truck that was set afire in the early morning hours of November 20, 2012.

On May 20, owner Bill Fell was awoken once again to the sight of his company’s only vehicle engulfed in flames, “My neighbour woke me up around four in the morning and told me my truck was on fire,” said Fell, “it seemed to be set the same way [as the first fire], but we’re not sure exactly how they’re doing it.”

Cornwall police have confirmed that they are investigating the fires as arson, but have not released any details regarding evidence or suspects.

“We haven’t heard anything from the ongoing police investigation,” said Fell, “there isn’t any clear information.”

Tow trucks are always a heavy investment. With this $20,000 flatbed completely ruined and unrecoverable, Fell says he will be resilient.

“We’re not giving up, we’re currently looking for another truck to purchase, we’re definitely not giving up,” said Fell.

There have been five torched tow trucks now in the city of 46,000 in less than two years. Metro Towing lost three of their vehicles to arson in a matter of months in 2011.

The first vehicle was torched at 2 a.m. on October 21, followed by two more torched trucks on December 6 at 2 a.m. and December 24 at 1:30 a.m.

“They had three fire marshals come in from Montreal, Toronto and Casselman,” said a spokesperson for the company.

“They all determined it was arson.”

Unfortunately, police have been unable to link these cases together or make any arrests as of time of publication. A statement from Cornwall Community Police Services regarding the investigation was also unavailable as of press time.

When asked if they had any advice for City Tow and Recovery, the spokesperson for Metro Towing said “We talk all the time, we’ve been through the same thing. Keep your head high and carry on, we can’t let these things ruin us.”

RIGHT: Two of the five tow trucks torched in Cornwall, Ont., in the last two years.

Ontario towing association releases first annual report The Provincial Towing Association of Ontario (PTAO) has released its first Annual Report on the state of the industry.

“Recognizing the importance of leading the industry into a more meaningful and respected industry the Directors and staff of the PTAO, among other persons, have been working hard at developing the essential communications with government, policing agencies and all those that have continual contact with our members and others,” said Doug Nelson, Executive Director of the PTAO. “There is no doubt we have had our challenges in developing these relationships, but you can rest assured we will continue to work hard with the assets we have to represent the industry in a professional and forward thinking manner.”

For more information on the PTAO, or to download a copy of the report, please visit ptao.org.

For advertising inquiries, please contact Gloria Mann at 647-998-5677 or advertising@collisionrepairmag.com.

august 2013 collision Repair 55

Contents Recycling News......................57-63 AARDA celebrates 25 years, OARA holds Tire Take Back and much more.

Recycler’s View............................64

by David Gold

AARDA celebrates 25 years at 2013 AGM

By Andrew Ardizzi

John Bruner and Darcy Jordan with the painting Bruner won in a draw, only to auction it off for $900. Jordan had the winning bid, with all proceeds going to the Sunshine Foundation.

While the industry has struggled to improve in every way, 25 years later the Automotive Auto Recycling and Dismantlers Association (AARDA) is proud to have prospered and cultivated the auto recycling business in Alberta.

“The past quarter century has been a remarkable period for our industry as it has dealt with many changes that have come along, not the least of which have been increased environmental standards and expectations,” AARDA president Steve Cox told association members during his closing remarks at the 2013 AGM conference.

The weekend was used to celebrate AARDA’s silver anniversary and consisted of a host of activities, including an opening reception, vendor exhibits with guests travelling from as far away as Italy, a presentation from John Couper of Couper Marketing Solutions, a golf tournament, special draws and auctions, and was punctuated by a performance by singer-comedian Richard Popovich and the closing dinner reception to end the weekend’s festivities.

Cox told delegates that over the next year they will begin to see the launching of many new initiatives that will propel the association

into its next 25 years, beginning with its recently relaunched website and extending beyond to include more industry advertising and greater collaboration with collision repair shops and insurance companies relating to the use of recycling automobile parts.

“I want to close by asking you to stay tuned for what is in store for the next year and in fact the next 25 years. Think about how great it would be for many of us here tonight to be gathered here again in 2038 to celebrate another quarter century,” Cox told delegates in his closing remarks.

AARDA’s Executive Director Ian Hope was also in attendance, and feels it was a truly special occasion, especially with his being able to meet Keith Walker, the association’s first Executive Director when AARDA was formed in 1988.

“It was quite special for me to meet him. It was amazing to hear their original visions for the association and see how we evolved towards becoming a responsible environmental group of recyclers,” Hope says.

Hope says it’s a very friendly atmosphere and gives each delegate a chance to sit and chat in a relaxed setting with likeminded

OARA’s Tire Take Back Days wins Ovation Award The 2012 Ontario Automotive Recyclers Association (OARA) Tire Take Back event has been awarded the Communication Management Community Relations Award of Excellence by the Ovation Awards. The award was presented Wednesday night at the Ovation Awards Gala in Toronto.

The Ovation Awards are presented by the International Association of Business Communications (IABC).

Susanne Robins, Director of Promotion and Education with Ontario Tire Stewardship, Melody Gaukel with Environics Communications and Brigitte Pesant of OARA attended the gala event and jointly accepted the award.

OARA wishes to thank Environics Communications and the OTS for submitting the 2012 OARA Tire Take Back event to the IABC organization, and for their great support in making the Tire Take Back event such a successful event in support of The Sunshine Foundation.

The 2013 T i r e Ta k e Back ran from May 27 until June 2.

For more information, visit rethinktires.ca.

OARA’s Ovation award for their Tire Take Back initiative.

Continued on page 58.

august 2013 collision Repair 57

AARDA anniversary... continued from page 57.

people. He says that while many of the recycling businesses in Alberta are independent and family-owned, there’s hardly an air of competition between the association’s membership and they’re all really good friends.

“They aren’t so much competitors as they are collaborators. They want to share their knowledge and information,” says Hope.

Hope says that collaborative idea rests at the heart of the conference atmosphere, and reminds of him of one of his favourite sayings that sums up the recycling business in his eyes.

“If I have a dollar, and you have a dollar and then we exchange our dollars, then we both have a dollar,” he says. “Now, if I have an idea, and you have an idea and then we trade ideas, then we both walk away with two ideas.”

Hope feels the association has come a long way, based on that very principle, and that they’ve made significant headway in achieving their objectives.

“I think our impacts are far-reaching. We’ve worked to protect the land, air and water that we share with the community. We’ve been instrumental in developing our industry so that there are plenty of recycled parts available,” he says. “We serve to help people afford their

58 collision Repair collisionrepairmag.com

vehicles and be in safe vehicles.

We’ve brought the industry a long way from the junkyard stereotype and it’s all be done on a voluntary basis by our members.

Recyclers have chosen to meet AARDA’s standards.”

Hope says a huge piece of AARDA’s success has been its sponsors and partners, while the organization has been a Guest performer Richard Popovich strong supporter of a number of entertained all charitable causes such as the in attendance at the 2013 AGM. Heart and Stroke fund, Cancer research, Autism Services Alberta, Mothers Against Drunk Drivers, local animal shelters and preserving the habitat of the province’s wildlife.

John Bruner, of Coreline Auto Parts, is an Associate Member of AARDA and also attended the conference. He agrees with Hope in that the AGM is a great way to trade ideas with fellow members and relax, but the highlight of the weekend for him was the conference’s draw. Bruner won a painting that was done by a local artist which depicts an old car in a field with flowers blooming around it.

It wasn’t the act of winning the painting that made his night, nor the painting itself. Rather, Bruner turned around and auctioned off the painting with all proceeds going to the Sunshine Foundation.

“I think the Sunshine Foundation is a worthy cause and I think all members should try and support them at some point in the year, because every little bit helps,” says Bruner of the not-forprofit organization that recently organized the DreamLift trip to Disney Land for terminally ill children. “I’m all about putting a smile on someone’s face.”

The painting was sold for $900 to Darcy Jordan, owner of Useable Used Auto Parts, who will also be putting the painting up for auction.

Bruner is happy to contribute to the Sunshine Foundation, and feels not enough attention is paid to them.

“They may not be curing anything, but they’re making kids smile and I’m okay with that,” says Bruner.

Hope is quite happy with how the event turned out, and relishes the opportunities to catch up with a group of people he feels are honest, genuine, value-driven.

“To me the best part of it is being with those kinds of people,” he says.

Going forward Hope wishes to see a renewal of AARDA’s efforts and expansion of their founding principles which began with Walker and the group’s original vision 25 years ago.

“Let’s do in the next 25 years what Mr. Walker did and achieved in the beginning and see where we can take AARDA in the next quarter century,” Hope says. “I think it’s important for us to not rest on our laurels.”

OARA welcomes Kenny U-Pull Hamilton to the fold

By Andrew Ardizzi

Kenny U-Pull’s Hamilton location is joining the Ontario Auto Recyclers Assocation (OARA) as its newest member.

“Kenny U-Pull has a brand in Ottawa that has been open for two-and-a-half years, and when we opened in Hamilton we felt it was just a good fit for us and the association as well,” says Paul Race, General Manager of Kenny U-Pull.

Race says a huge benefit to being a member of OARA is the legitimacy that comes with membership, instantly bolstering a company’s professional portfolio. He also says it’s a great resource for industry information.

“You’re part of an association and you do benefit from being able to gain insights into where the industry is going,” he says.

OARA has spent more than 20 years working to keep auto recyclers informed about developing industry trends and government legislation pertinent to their businesses.

Steve Fletcher, OARA’s Executive Director, says they hope to continue to help auto recyclers like Kenny U-Pull Hamilton better understand the laws affecting their businesses.

“It’s one of the big things that we do, which is to help interpret

the world for auto recyclers so that everyone understands and is aware of what’s going on in places like the government and insurance/repairer sectors,” says Fletcher.

Fletcher additionally notes programs OARA employs, such as buying and selling co-ops, that are designed to help members gain better access to materials and opportunities they wouldn’t otherwise have available to them as individual recyclers.

“We’re just getting more involved in that and figuring out how we can add more value to the members as a group,” he says.

Race says the benefits of being an OARA member are vast, noting how impotant it is for auto recyclers to have access to OARA’s information resources, in addition to standardizing basic business practices for each member.

“They ensure that the image of the business is credible and that the membership itself is credible and that everything is handled in the correct manner,” Race says. “I think we just want to make sure that we can represent Kenny U-Pull with the best practices that we can to help us continue to be a good corporate citizen in our community.”

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august 2013 collision Repair 59

Atlantic recyclers launch gold seal at AGM

By Mike Davey

The Automotive Recyclers Association of Atlantic Canada (ARAAC) held its Annual Meeting on May 24, 2013 at the Sheraton Hotel Newfoundland in St. John’s, Nfld.

ARAAC’s Board of Directors held a closed-door meeting the previous night, with the main portion of the annual meeting taking place on Friday. The morning session consisted of the ARAAC Direct Member meeting. After lunch, the meeting moved to an open format, featuring a variety of presentations.

The ARAAC meeting also included an Open House & BBQ at Auto Parts Network, one of Newfoundland’s preeminent automotive recyclers. The facility was featured on the cover of the latest issue of Canadian Automotive Recyclers magazine.

Highlights from the meeting include a $5,000 donation to the CCIF Skills Program in honour of Glenn Hickey from Auto Parts Network, for his continued representation of the industry within CCIF and the announcement of the re-audit schedule for the Canadian Auto Recyclers Environmental Code. All ARAAC Members will be re-audited this summer.

The meeting also included a tabletop trade show, with displays from Burlington Business Forms, Car-Part.com, Hollander, Impact Auto Auction, LKQ Corporation, Monidex Distribution, Switch Out Program and Wholesale Auto Parts Warehouses. The ARAAC Meeting also saw the Gold Seal customer assurance program launched to the membership, and the first four regional members were announced: Blenkhorns Auto Recyclers, Covey Auto Recyclers, Maritime Auto Salvage and Island Auto Supply. The Gold Seal Program is a voluntary quality assurance accreditation program that uses a series of standards, audits and CSI requirements to help ensure high quality recycled parts are reliably provided to repairers, insurers and the public.

The next ARAAC meeting is scheduled for October 26 in Halifax, Nova Scotia. For more information on ARAAC, please visit araac.ca.

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AARDA supports Autism Centre Cherie Cohen Diamond, daughter of Jaspar Used Auto Parts owner Jack Cohen, Jasper Auto Parts has an 18-yearcontributed $2,500 to old autistic son the Centre of Austism Services, Alberta. named Adam.

After lear ning a few AARDA members hadn’t made their $500 donatons as part of the “End of Life Vehicle” program, she quickly called AARDA’s office and asked if she could contact those members.

AARDA approved her request, and before long Cohen was able to raise $2500 for the Centre for Autism Services with the help of other recyclers.

“They were really great. When the owners I called heard about the Centre and the key services they provide to autistic clients and their families. They were immediately supportive,” says Cohen.

OARA helps lift kids’ dreams with Tire Take Back

By Avi Patel

With another successful Tire Take Back event coming to a close, the Ontario Automotive Recyclers Association (OARA) has donated all proceeds from the initiative to the Sunshine Foundation’s DreamLift.

This was the fourth year OARA and the Ontario Tire Stewardship (OTS) have organized the tire-based recycling program to raise money for the Sunshine Foundation.

Every year the Sunshine Foundation sends children suffering from life-threatening and debilitating illnesses on a magical, one day trip to Disney World. Sunshine sent 75 children, each who were partnered with a number of volunteers from OARA, Toronto Police Services or who were health care Darrell Pittman, of P&G Auto Parts, professionals. The DreamLift took off at 4 was so moved by his a.m. on June 11 for Orlando, with children volunteering experience being able to tour Disney World for an entire that he got a tattoo to commemorate the day before returning home to their parents 2013 DreamLift. later that day at midnight.

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AARDA will mark its 25th Anniversary as an Association at Sylvan Lake, June 7-8, 2013.

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Your choices of quality recycled automotive parts from AARDA members help us succeed and serve the community better!

All AARDA members have voluntarily implemented the new standards of the Canadian Automotive Recyclers Environmental Code (CAREC) – we care about the environment!

august 2013 collision Repair 61

Tom Huehn of 400 Auto Wreckers nominated for award

By Mike Davey

A Medal of Honour recipient once said, “There are two kinds of people in this world; those who get things done and those who take credit for getting things done.” Tom Huehn of the town of East Gwillimbury, Ont., is the kind of man who gets things done and shies away from taking much credit at all.

An entrepreneur and environmental steward, Huehn is one of nine nominees up for the 2013 Character Community Award for York Region, in the category of Change Our World: Environmental. The award recognizes citizens who have made outstanding contributions to their community. Huehn arrived in the Holland Landing village area of East Gwillimbury 27 years ago and established his company, 400 Auto Wreckers. Since then, he has been an upstanding and well-known member of the community of 8,500.

For years, Huehn has undertaken initiatives to improve his community, from raising funds for municipal repairs, encouraging high standards for drinking water and landfill storage, and opening free libraries for the public. His second free take-a-book-leavea-book library program is set to be opened next week. When asked about the difficulties of opening such a library, Huehn said, “It’s not a big deal, you’ve just got to build it.

There are only about fifteen of these free programs in Canada, but there are thousands in the States. We’re going to improve that.”

Huehn’s company is also one of 62 participating members of the Ontario-wide Tire Take Back event sponsored by Ontario Automotive Recyclers Association (OARA) and Ontario Tire Stewardship (OTS). Funds raised go towards the Sunshine Foundation of Canada, to help

62 collision Repair collisionrepairmag.com

A recent event at 400 Auto Wreckers promoting Tire Take Back Days highlights just how long old tires can hang around. Marlene Johnston, Member of East Gwillimbury Town Council examines a wheel and tire from a 1935 Ford with Susanne Robins of OTS and Tom Huehn.

kids with severe disabilities or life-threatening illnesses make their dreams come true.

“This is a truly unique fundraiser, because we don’t ask for any gifts or money or anything,” says Huehn. “All we ask for is a disposable item, something they want to get rid of anyway, and we use the money to help kids.”

LKQ acquires Sonshine Auto Parts LKQ Canada Auto Parts has acquired the capital stock of Sonshine Auto Parts, which operates a 50-acre wholesale salvage yard in Cumberland, Ont., in the Ottawa area.

Established in 2002 by Denis Desjardins, Sonshine Auto Parts has 40 employees serving more than 10,000 commercial customers. Sonshine’s customer base is primarily located in Canada, but the business also sells parts in the U.S. and overseas. Sonshine processes more than 3,000 vehicles annually.

Sonshine is a member of the Ontario Auto-

mobile Recyclers Association (OARA).

Prior to 2002, Desjardins operated Cumberland Auto Parts, which he founded in 1994.

In 2000, he sold that business to Ford Motor Company. Ford subsequently decided to divest all of its recycled auto parts businesses, and Desjardins bought his salvage yard back from Ford in 2002 and founded Sonshine Auto Parts. He will continue to manage this business for LKQ. For more information on LKQ, please visit lkqcanada.ca.

OARA donates to carstar’s “Soaps it up” CARSTAR’s 10th annual “Soaps It Up” got off to a great start with a donation from the Ontario Automotive Recyclers Association (OARA).

Brigitte Pesant and Sherry Baugh of OARA presented the donation to Lisa Mercanti-Ladd, Executive VP of CARSTAR Canada and Melissa Slote of CARSTAR Hamilton Midtown West. The donation of $2,100 represents $5 for each certified recycler across Canada. was presented at C A R S TA R H a m i l t o n Midtown West in Hamilton, Ont. To date, CARSTAR has helped raise over $2 million for Cystic Fibrosis Canada.

Brigitte Pesant of OARA, Melissa Slote of CARSTAR Hamilton Midtown West, Lisa Mercanti-Ladd of CARSTAR and Sherry Baugh of OARA.

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Steven Cox is the Manager of Allwest Auto Parts in Edmonto, Alta., and also currently serves as the President of AARDA. He says the Canadian industry would benefit from similar legislation.

“If you’re purchasing more than two salvage vehicles per year, you’re obviously in some sort of business,” says Cox. “I think there’s a good chance that if they’re not

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a licensed recycler, then they’re operating under the table.”

Steve Fletcher of ARC says there is a real danger to the public from fly-by-night operators. “It’s possible in some places to buy a vehicle designated as salvage, perform some cosmetic work and minor repairs, and sell it to an unsuspecting buyer,” says Fletcher. “A lot of these leave the country, but some are driving on North American roads. That puts the drivers and passengers and other motorists at incredible risk.”

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august 2013 collision Repair 63

recycling i

workshop

Collaboration is the key to victory for all parties.

By David Gold

O

n April 23, 2013, I was invited to participate in a workshop in Ottawa, Ont. This was the first of 10 such workshops taking place across Ontario where collision shop owners and managers local to the event were strongly encouraged to come out and attend this session. Not surprisingly, this workshop clearly highlighted the “financial stress” that collision shops are under as a main focal point in their marketing flyer, aimed to bring people in and get involved.

The main premise of such a workshop is to inform the collision repairers as to the multitude of changes and the regulatory initiatives that are taking place in the industry. Engaged business people will be better educated and equipped with the latest and most current information that is available to them which is essential to be successful in their company. For me, being able to communicate the role that auto recyclers play in our collective marketplace is priceless. I was afforded the opportunity to present the automotive recycling side of

the industry as another key element of information for the open forum discussion.

After John Norris of CIIA made his opening remarks, he gave me the floor to kickstart the event.

I explained the distinct groups of those that handle vehicles that have reached the end of their lives and I honed in on the important role that the professional automotive recyclers and dismantlers play in this vast group. The audience was impressed to know how seriously recyclers take the business.

I also spoke about what collision repairers can expect from us, including how we grade our parts and what’s included, as we sell assemblies, for example.

I finished up my presentation on how and why we purchase inventory, also outlining all of the nuances and challenges. We then heard from the Director of Enforcement for the new College of Trades mandates as well as an update from I-CAR by a local representative. There was also information about work arounds for complex vehicle security systems, as well as health and safety updates and even some time for a discussion on parts procurement programs.

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64 collision Repair collisionrepairmag.com

recycling i

It was made very clear by John Norris that those who are not adopting better practices will soon find it impossible to keep their doors open. The due diligence on the environmental regulations must be a shop’s top priority in addition to the regulatory and licensing requirements that are coming down from the College of Trades.

it clear that he will be listening to shop owners and managers and learning and adapting his enforcement of violations as this moves forward. Workshops such as this one are so successful at bettering the industry for everyone. I got e-mails and calls the next day from customers who genuinely want to work together as business partners.

those who are not adopting better practices will soon find it impossible to keep their doors open.

During the Q & A, Bob Onyschuk of the College of Trades was very candid when he acknowledged that previous attempts to license Auto Body and Collision Damage Repairers were unsuccessful but promised this new initiative will be different. The discussion on this topic was intense for many local reasons, including cheaper door rates for collision work in neighbouring Quebec where a trade certificate is not required. But ultimately the message was made that any enforcement by Bob and his team will be targeted to those illegal and unlicensed operators who work for cash and evade the rules. Bob seemed to have quelled the attendees’ concerns and made

You know the event was meaningful when the presentations ended and no one wanted to leave – we were all just talking shop and discussing the issues.

I am very encouraged by events like this, and would suggest that all collision repairers consider getting involved and signing up for the next industry workshop that comes your way. CRM David Gold is the co-owner of Standard Auto Wreckers, an auto recycler with locations in Toronto, Ottawa and Niagara Falls, New York. He can be reached by phone at 416-286-8686 or via e-mail at david@standardautowreckers.com.

august 2013 collision Repair 65

last word

papers,please Got your license? Better get one quick.

By Mike Davey

M

any questions and concerns may run through people’s minds when they bring their vehicles in for repair, but one of the primary things they want to know is something almost never heard in the shop: “Is the technician working on my car competent?”

At least in Ontario, it is now possible to check on the basic credentials. The Ontario College of Trades operates an official registry of tradespeople.

“Anyone in a compulsory trade already has a Certificate of Qualification (C of Q)

the collision repair business? Johnson says that it does.

“The value proposition is enforcement,” he says. “They’re getting tired of losing business to people who aren’t qualified.

We’re eventually going to have over 150 enforcement staff. They’re designated provincial offences officers ... giving them the power to levy fines.”

The first enforcement officers have just finished training. Numbering 16, their ranks will likely increase to 30 or 40, with even more coming on board in 2014.

Bill Speed is an autobody instructor

“the value proposition is enforcement.”- Ron johnson from the province,” says Ron Johnson, Chair of the OCOT’s Board of Directors.

“Those certificates are now instead issued

by OCOT. We have a database of all the individuals working in the compulsory trades in Ontario.”

Receiving a new C of Q is as simple as contacting the College and paying the fee.

Technicians who have let their Certificate of Qualification lapse over the years should still be able to receive one. There is also a way to receive one even if you didn’t go through an apprenticeship. The Ministry of Training, Colleges and Universities can evaluate your other education, such as I-CAR classes, and determine if you’re qualified and issue you a C of Q. “For anyone who was issued a C of Q in the past, we have a record and we can reissue them. Anyone who has never received one is not entitled to work in a compulsory trade,” says Johnson. “They’re taking business away from those who take the time and effort to go through a proper apprenticeship.”

Consumer protection is important, but does the registry have value for those in

with Danforth Collegiate in Toronto. As he points out, though, just because a tech has a C of Q doesn’t mean they’re qualified.

“Without some form of monitoring of skill sets, the consumer only knows that the tech is licensed,” says Speed. “I’ve been licensed since 1981. If I still did repairs using the techniques of 1981, people’s lives would be in danger. So far as I can see, all customers can check is whether the tech has a license and if it is current.”

The decision to create the OCOT has been controversial. Its critics have called it another layer of bureaucracy, as well as calling into question both the benefits and the structure of the College. The most vocal critics of the OCOT have organized under the Stop The Trades Tax campaign, where they urge tradespeople and consumers to sign petitions and write to their MPPs regarding the College. CRM

66 collision Repair collisionrepairmag.com

Mike Davey is the editor of Collision Repair magazine.

He can be reached at 905370-0101 or via email at editor@collisionrepairmag.com.

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