8 minute read
INDUSTRY INVESTIGATION
Top five trends to watch for in 2021
BY MAX REID
Experts suggest that this trend could be a result of lighter-weight parts being used in vehicle assembly and “the interconnectedness of vehicle systems” and their potential to fail.
Eager to put what is now being considered Earth’s worst orbit around the sun, more commonly referred to as the year 2020 behind them, Mitchell International has released a report showing the top five trends to watch out for in the automotive industry in 2021.
The industry suffered a number of setbacks over the past year as a result of the COVID-19 pandemic, including “a disruption in the export of Chinese parts, manufacturing delays in Europe, the short-term closure of U.S. assembly plants and a significant drop in sales volume” as major contributors to industry strain.
However, where disruptions were experienced in many aspects of the industry, many automakers and parts manufacturers found ways to pivot their business in order to meet the new needs demanded by such an uncertain year for the economy.
Ford, General Motors and Tesla Motors, among others, teamed up with medical equipment manufacturers to help produce the ventilators, respirators and face shields that would in turn help so many struggling dealerships and collision centres reopen their doors following the initial lockdown in the spring.
As well, the new emphasis on remote accessibility to services has prompted a more serious look towards online purchasing platforms for companies in the auto sector.
Startups like Carvana Co. and Vroom Inc. are drawing an increased amount of attention as consumer habits continue to trend strongly toward a desire for more online and app-based vehicle purchasing options.
Since the beginning of the pandemic GM has seen its percentage of dealers using the company’s Shop-Click-Drive program rise more than 40 percent, with 85 percent of GM dealers now using Shop-Click-Drive.
In these adaptive business decisions, automakers and repairers have demonstrated their ability to adjust to rapid and abrupt change, a factor that helped Mitchell determine the five trends that are likely to present themselves in the coming year.
The first trend identified in the report indicates that the pandemic has led to an environment where personal vehicle ownership has taken greater priority in the minds
of consumers over shared mobility options which industry experts predicted to overtake the traditional concept of vehicle ownership.
Cox Automotive’s chief economist Jonathan Smoke referred to this shift in consumer ideals as an indication that “the vehicle, in many ways, has become our own private bubble,” according to Smoke.
The second trend in the report points to the rapid expansion of electric vehicle (EV) availability in the market as a key contributor to the increased adoption of emissions-free options for drivers.
In 2021, the U.S. market is expected to offer 75 different fully electric or plug-in hybrid models compared to 59 in 2020. As well, increased competition in the EV sector has resulted in the former market dominance of Tesla being reduced to a projected market share of 55 percent in 2021, down from 66 where it was previously predicted as the competition in EV sales starts to ramp up.
Diagnostics and pre-repair scanning are becoming a more common practice in the collision repair industry, according to the report. The necessity of these procedures grows by the day as a study of more than 2.2 million scans by Mitchell shows that “the average scan produces more than seven diagnostic trouble codes (DTCs), making pre- and post-scanning critical to properly restoring a vehicle’s safety systems.”
The report found that “the average number of labour hours categorized as ‘glass’ has increased by just over 27 percent since 2018,” based on Mitchell’s data from glass estimates.
A potential reason for this shift in focus could be the increasing prevalence of “headsup display” (HUD) technology that displays vehicle information directly on the glass of the windshield.
“Analysts expect the use of HUD technology to increase, with an anticipated 31.3 percent compound annual growth rate (CAGR) between now and 2025,” according to the report.
Finally, the report shows that accident severity is up slightly, with the frequency of estimates classified as “non-drivable” having grown by 5.63 percent. As well, the frequency of airbag deployments has increased by 22 percent according to the data.
Experts suggest that this trend could be a result of lighter-weight parts being used in vehicle assembly and “the interconnectedness of vehicle systems” and their potential to fail.
The report found that “the average number of labour hours categorized as ‘glass’ has increased by just over 27 percent since 2018,” based on Mitchell’s data from glass estimates.
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RECOGNIZING THE MASTER ARTISTS
Certification is a step in the right direction for the automotive industry
BY STEVE LEAL
The automotive industry is not for everyone.
Day in and day out, auto technicians go the extra mile in restoring vehicles to their original glory, making sure that form, build, and performance are in perfect sync.
They are the “master artists” for whom each vehicle is an exquisite work of art that needs a skilled technician’s special touch to recreate its beauty. This dedication requires a certain degree of passion for cars and for some, it’s a personal calling.
After spending over 20 years in the industry and leading one of the largest automotive aftermarket franchise networks in the world, I am still in awe of these master craftspeople.
They are the lifeline of this industry, each day they find an opportunity to do something different than their peers. And, as the franchise leader, we constantly look for opportunities where we can support them.
I am a lifelong advocate of training and certification for our industry and have spoken about these two topics at many prestigious forums around the world. Different countries have different requirements for certification of shops, which I keep underlining to our global network of franchises the importance of certification.
Over the past few decades, the automotive industry has been evolving rapidly, in terms of technology, build, safety and performance. From gas-powered engines to electric cars to self-driving vehicles, the industry is witnessing a huge quantum leap forward.
While these new features are aimed at enhancing a vehicle’s safety and performance, it becomes imperative for technicians and auto body shop owners to keep up with new technology at all times.
With rapid advancements in vehicle technology, such as driving assistance options and new lightweight materials, having the right equipment and knowledgeable technicians is no longer an option. If you look up the repair procedures of most makes and models, the processes and requirements change from one year to the next due to new equipment complexities or raw materials used in the construction of different components of the vehicle structure.
The successful shops are those that have decided to stay ahead in the game by making
sure that their technicians are well-trained in the latest auto technologies and that their shops have the right tools and equipment to meet the demands of modern vehicles.
Shop certification demonstrates to customers and insurance partners that the team has been trained to manage the most complex mechanical and collision repair requirements, and that the shop has the latest equipment to ensure all repairs and services completed on vehicles are to manufacturer specifications.
For shops to be certified, they need to undergo a test of their repair processes and equipment and an audit of their facilities to meet the industry’s stringent standards.
Many shops around the world have started to invest in quality equipment that improves turnaround time and assures quality control in all processes. And these are shops with an eye on the future.
For technicians, continuous learning should be an important prerequisite.
We need people with an open mind to agree that the repair process will evolve from year to year. Regular training and refresher courses for skilled technicians in the most advanced collision repair technologies prepare them to be better prepared for the future.
As technology evolves, electronic components become more sophisticated while alloys used in the construction of cars become more comple, technicians can no longer rely on past experiences only. They need to read every OEM technical data sheet prior to any structural repair to ensure they meet OEM recommendations and standards for a particular vehicle.
In the next few years, I anticipate that there will be a huge demand not only for certified shops but also for talented technicians who can repair vehicles safely to top quality standards.
Here’s to welcoming the next generation of master artists!
STEVE LEAL
is the president and CEO of Fix Network World. Under his leadership, the company continuously aims to transform the global collision franchise business by aligning global operations around lean, customer-driven processes.
