Stick to it: Our spotlight on adhesives. Serving the Business of the Industry
BUILT FOR
Larry Doherty and Steve Alizadeh of the Brampton Auto Mall give us the inside scoop on the collision centre’s new facility.
VOLUME Rear View Mirror
Examining the trends shaping the collision industry. Volume 10 Number 2 l $4.95
Strong Dollar
The loonie’s rise may impact parts use.
>> PLUS
Highlights from PPG’s MVP conference, the OARA meeting, and much, much more!
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CONTENTS
On The cover Volume 10 Issue 2, May 2011
21
21 building for volume Larry Doherty is the GM of Brampton Auto Mall’s collision facilty, a new building designed with process in mind.
The new facility at Brampton Auto Mall under construction.
features 13 Rear View Mirror Examining the trends that will shape 2011.
17 journey to excellence Practical information forms the backbone of the PPG MVP conference.
25 the loonie’s rise How will an above average dollar impact parts use?
32 passion and commitment
Shellie Andrews has joined the board of the Women’s Industry Network.
35 stick to the point Turning the spotlight on the latest in adhesives, sealers and foams.
13
Janet Taylor of the Summerhill Group was one presenter at OARA.
52
52 Inter-industry synergy Highlights from the Ontario Automotive Recyclers Association conference.
departments 04 Publisher’s page by Darryl Simmons The big picture. 44 Point Blank by Sam Piercey Kudos to OARA.
Stick to it: Our spotlight on adhesives. Serving the Business of the Industry
On the Cover:
Brampton Auto Mall’s collision centre is expanding.
Built for
larry Doherty and Steve Alizadeh of the Brampton Auto mall give us the inside scoop on the collision centre’s new facility.
VolumE Rear View Mirror
Examining the trends shaping the collision industry.
Strong Dollar
The loonie’s rise may impact parts use.
>> PLUS
Highlights from PPG’s MVP conference, the OARA meeting, and much, much more!
YOUR ONLINE SOURCE
Canada’s collision repair information resource. New articles and top news stories daily. Visit collisionrepairmag.com.
collisionrepairmag.com
HAVE YOUR SAY We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to editor@collisionrepairmag.com.
46 Prairie View by Tom Bissonnette Crisis situation.
48 Who’s driving? by Jay Perry People skills.
50 Recycling by David Gold Talk the talk.
58 Last Word by Mike Davey What’s your strategy?
May 2011 collision Repair 03
publisher’s page
realinfo We don’t even know what we don’t know
PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com
By Darryl Simmons
EDITOR MIKE DAVEY editor@collisionrepairmag.com
I
t seems like I can’t go anywhere without people asking me, “What’s going on in the industry? Where is it going?” The need for current information in our industry is apparent. Shop owners especially are hungry for detailed and reliable information on the current state of the industry to help determine where they are and where they are headed with business. There’s much speculation and nearly everyone in the industry has an opinion on where the tr ue issues lie. Viewpoints and concerns may differ, but the
The fact that the industr y has no real detailed, current and readily accessible data is made more serious simply because we don’t know what we don’t know. There are most likely huge gaps in our information simply because none of us have ever thought to ask the right questions at the right time. What do you, as a collision repairer, want to know? What are the key items that you believe are going to be important to your business over the next year? Is the lack of a formal group that lobbies and advocates on the industry’s behalf a hindrance or a
What’s Important is that we find the answers to the questions you have. bottom line is that nobody has all the data needed to answer the question authoritatively. No one can truly answer this question or claim to know exactly what awaits the industry. Of course we, as an industry, have a general idea of what’s going on. We all know that the last 10 years have seen an increase in the number of collision repair facilities joining networks. We all know that there are more multi-shop operators today than ever before. And we all know that insurers are actively looking for the most efficient shops to partner with. Yet there are many more questions about the industry in which we operate that have not been answered. Even from a broad perspective, questions linger. For example, how many shops are there throughout Canada? How many in your own province? What is the average door rate? What percentage is consumer pay, and in fact, what do you consider the definition of consumer pay is? The list can go on and on. All of this information would be valuable. Not only would it help shops, it could create intelligent dialogue with insurers, supplies as well as government and probably in other ways as well.
help? Do you think we need accreditation? What about a series of standards? And if so, what type? After all, the direction is easy, but the devil is in the details. What’s important is that we find the answers to the questions you really have, instead of the questions we think you might have. That is essentially the biggest and most critical question: What do shops want? These aren’t hypothetical questions. With enough of us working together, we can pool our knowledge, determine where the gaps in our knowledge lie, and fill them in with the appropriate answers. The goal is providing you with what you really want to know and data you can use to help steer your business. I’d love to hear from you personally. Let me know exactly what kind of information you’re looking for, and we can start planning out a roadmap to a better future. CRM
04 collision Repair collisionrepairmag.com
ART DIRECTOR DANIELA LUBERTO daniela@collisionrepairmag.com assistant EDITOR Megan Ng megan@mediamatters.ca Interns tess Kang, Viola Li COLUMNISTS DAVID GOLD, JAY PERRY, SAM PIERCEY, TOM BISSONNETTE VP INDUSTRY RELATIONS GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com VP Digital Media JOE PLATI (647) 669-2625 jplati@mediamatters.ca circulation department Pat Cappelli (905) 370-0101 pat@mediamatters.ca publisher’s assistant Ryan Potts ryan@mediamatters.ca SUBSCRIPTION One-year $24.95 / Two-year $35.95 Collision Repair ™ magazine is published bi-monthly, and is dedicated to serving the business interests of the collision repair industry. It is published by Media Matters Inc. Material in Collision Repair magazine may not be reproduced in any form with out written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 86 John Street Thornhill, ON L3T 1Y2
Collision Repair magazine is published by Media Matters Inc., publishers of:
Trainingmatters.ca T H E T RA I N I N G P O RTA L F O R C O L L I S I O N R E PA I R
magazine
Products Change High Standards Don’t DuPont provides the full Low VOC system to meet all of your refinishing needs. DuPont™ Cromax® Pro waterborne basecoat can speed up your operations and increase productivity, without compromising the quality of work you demand. With 1.5 coat coverage, wet-on-wet application and no flash time between coats, DuPont™ Cromax® Pro can help you reach your operational goals. It’s part of a proven integrated range of DuPont Refinish products. A full range of primer and clear coats are available to complement Cromax® Pro for excellent results. Each of the new products has been designed to meet the challenges you face everyday in your shop. To learn more about increasing your productivity, call your local DuPont Representative or speak with a DuPont Customer Care Representative at 1.800.668.6945.
The DuPont Refinish Logo, DuPont™ and all products denoted with ™ or ® are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates. DuPont Canada is a licensee. © Copyright 2011 DuPont Canada. All rights reserved.
the front end
Reader letters Recently we asked readers to give us their tips for communicating a lean vision. We’ll continue to print the responses as they come in. We have spent the last three years implementing a lean process. As you know, having all your staff buy in is very hard. I hired a retired engineer to assist with this journey and we set a time line for continuous improvement. After about one month, and
two process changes my engineer sat down with me and said he was done at the end of the week. I was totally shocked and asked him why. He replied by saying that he would stay if I would keep focus and not keep changing the process back to the way it was before I signed off on it. From that day forward we made a commitment that when the process is set, we will stand by the process. To have our employees buy in we first
need to take a good hard look at ourselves. As for our employees, we put in an incentive program and included them in implementing our lean process. When we all work together as a team, ideas start flowing. Kevin Carlaw Kawartha CARSTAR Collision 570 Neal Drive Peterborough, Ontario
People on the move
strange but true
U.S. Chemical appoints Matt LaGuardia to Director – Business Development
Man Drives into Pole, Sues
U.S. Chemical & Plastics has promoted Matt LaGuardia to Director – Business Development. In his new role, LaGuardia will be responsible for all sales, product management and overall profit growth for USC, Morton, Sunmight and Spray-Max products distributed through manufacturer’s representatives and retail channels in the U.S. and Canada.
AkzoNobel appoints Laura Costello Director of Marketing for Aftermarket AkzoNobel Automotive & Aerospace Coatings (A&AC) Americas has announced the appointment of Laura Costello a s D i re c t o r o f Marketing. She will oversee all Laura Costello activities related to the marketing, branding and promotion of the Sikkens, Lesonal, U-Tech and Wanda brands for both the car and commercial business sectors. In her new capacity, she will also be a member of the Global Marketing Council for Automotive & Aerospace Coatings. Prior to joining AkzoNobel, Costello held positions in a number of organizations whose core competencies are closely aligned to issues found in the aftermarket. 06 collision Repair collisionrepairmag.com
new addition to fix auto’s head office team Athena Hilts, Managing Director of Fix Auto Ontario, Alberta and Atlantic Canada has announced the addition of Grace Monaco as Insurance Account Executive for Fix Auto Ontario and Atlantic Canada. Monaco has over 10 years of sales and marketing experience including vendor relations, account acquisition, new territory development, contract negotiation and strategic sales plan development. She will focus on the development and g ro w t h o f F i x Auto Ontario and Atlantic Canada within the insurance i n d u s t r y. S h e can be reached at gmonaco@ Grace Monaco fixauto.com.
A Maine man drove into a pole in a Walmart parking lot, then claimed the store should pay $2,918.05 to repair his truck. He filed a small claims complaint in Portsmouth District Court alleging he was owed the money for repairs to his 1997 Chevy S10 after he drove into the parking lot pole. The judge determined he was responsible for damages.
Moose vs. Cars Loose moose in Newfoundland have a St. John’s lawyer calling for a reduction in their numbers for ecological reasons as well as human safety reasons. Ches Crosbie has launched a lawsuit against the provincial attorney general, calling for a halving of the moose population and financial compensation for people who have been seriously injured in car accidents involving moose. Newfoundland has roughly one moose for every four people. Ontario, by contrast, has about one moose for every 121 people.
The High Cost of Bungee Cords A man in Virginia was sent to the hospital after being thrown from the roof of a car when it turned a sharp corner. He had been riding on the roof to hold down a mattress that he and a friend were transporting.
Why be anonymous when you can be visible? fixauto.com
TO JOIN THE NETWORK CALL 1.877.344.4349 Untitled-1 1
THE BODY SHOP NETWORK
6/16/09 12:00:10 PM
news
Mark’s Auto body wins “FIT” award AkzoNobel has announced that Mark’s Auto Body is one of the second year recipients of the “FIT” Sustainability Award. Mark’s Auto Body has locations in Burnaby and Port Coquitlam, British Columbia. Moody’s Auto Body, located in Gorham, Maine and Lafontaine Automotive Group in Highland, Michigan have also received “FIT” Sustainability Awards. The “FIT” Award recognizes visionary organizations that are utilizing business practices which meet the needs of the present without compromising the needs of the future.
The three letter acronym represents the three key measurement criteria of the award; Focus, Innovation and Talent. According to AkzoNobel, the award was created to promote the leadership role and unique contributions which the collision repair industry is making to generate a more sustainable future. Mark’s Auto Body comprises two facilities owned and operated by the Milacic family. From left: Bobby Milacic, Mark Milacic (founder), Vicky Milacic and Dino Milacic.
carstar expands in alberta, Ontario and quebec Carstar Automotive Canada celebrated the network’s 17th Alberta location recently with the opening of Carstar St. Albert. Carstar St. Albert is owned and operated by Chris Lane along with his parents, Cathy and Frank. Lane’s 10 years of industry expertise and his parents’ business background have already Carstar St. Albert is the 17th Carstar location in Alberta. brought their location success in their community. square feet of production space with another “We’ve been a family-run business for five 500 square feet dedicated to office space. years,” said Chris. “We are dedicated to proThis is Carlini’s second store, making him viding our community with the absolute best a multi-store owner. His first store, Carstar in collision repair.” Windsor, has been running successfully since A new Carstar collision centre has also 2004 when he joined the company. opened in LaSalle, Ontario. Carstar Diamond Trois-Rivières has also Dennis Carlini is the owner and operator of joined the Carstar network, making it the 17th Carstar LaSalle. The building houses 4,800 Carstar location in Quebec. The network has expanded rapidly in Quebec over the last year. Serge and Danielle Diamond, owners and operators of Carstar Diamond Trois-Rivières, have been in the collision industry for 24 years and have owned their location since 1997. The building is 8,400 square feet, providing the collision team with enough space and state-of-the-art equipment to complete top quality repairs. “We are excited to be a part of the Carstar network,” said Serge. “We’re also looking From left: Yves Robichaud, Regional Manager in forward to becoming our community’s first Quebec for Carstar, Danielle and Serge Diamond of Carstar Diamond Trois-Rivières. choice in collision repair.” 08 collision Repair collisionrepairmag.com
3mcollision.com launched 3M Automotive Aftermarket has launched a new website that the company says will allow users to more easily find products, solution guides, how-to videos, related projects and more. The new website can be found at 3MCollision.com. The new website is designed to help customers, jobbers, distributors and other professionals by arranging products in a logical path by product number, task, solution and quick technical information without having to read a significant amount of technical copy to find the right product.
kirmac acquires precision autocraft Kirmac Collision has continued to expand in the United States with the acquisition of Precision Autocraft in Newcastle, Washington. The newly acquired facility will operate under the Kirmac Collision name. Kirmac operates a total of 10 collision repair facilities in Washington, under the Kirmac and Thoroughbred Collision brands. The company also operates 10 locations in British Columbia. According to CEO Ian McIntosh, the acquisition is part of a strategic goal to meet the needs of customers and insurance partners throughout the Puget Sound area. He also indicated that the acquisition of Precision Autocraft is the first of several the company plans to make this year.
news
successful agm for across canada warehouses Across Canada Warehouses held its 39th Annual General Meeting and conference recently. It was attended by over 100 members, manufacturers and industry stakeholders. The meeting took place at the Phoenician Resort in Scottsdale, Arizona. The event featured an opening pool side BBQ kickoff, a Mitchell Canada industry seminar on market trends and Mitchell’s new repair centre solutions, an all-delegate golf tournament and supplier meetings and networking conference throughout the meeting. The 2012 Annual General Meeting will also take place in Arizona.
The Across Canada Warehouses team at the organization’s annual general meeting in Arizona.
Akzonobel pretreatment gets chrysler approval michelle rolls makes most influential list AkzoNobel has announced the leaders that have been selected to receive the 2011 Most Influential Women in the Collision Repair Industry (MIW) designation. Five distinguished honourees are being recognized. They comprise a cross section of service areas within the collision repair industry from the United States and Canada. • Barbara Davies – Autobody News – Carlsbad, California • Michelle Rolls – Queensway Autobody – Prince George, British Columbia • Jennifer Justice-Hayley – Valley Paint & Body Inc. – Amelia, Ohio • Susanna Gotsch – CCC Information Services – Chicago, Illinois • Sharon Mazanec – Sterling Collision Centers, Inc. – Northbrook, Illinois The MIW program was established in 1999 by AkzoNobel as an industry honorarium. The goal of the program was to promote the contributions of key leaders and grow the future involvement of a valuable resource pool for the industry. The MIW program collaborates with the I-CAR Education Foundation to provide scholarships to deserving women.
Chrysler has approved two exclusive Sikkens pre-treatment systems for regulated and non-regulated markets. AutoPrep (Pre-treatment Wipes)/Colorbuild Plus (undercoat) and Autobase Plus (basecoat) and Autoclear III (clearcoat) have been approved for use in non-regulated markets. AutoPrep Pre-Treatment Wipes/ Colorbuild Plus 250 (undercoat)/Autowave (basecoat) and Autoclear Superior (clearcoat) are approved for use in regulated markets.
Both systems have as their cornerstone component the recently introduced AutoPrep Pre-Treatment Wipes. “We are extremely gratified to receive this acknowledgement from Chrysler,” said Laura Costello, Director of Marketing for AkzoNobel Automotive & Aerospace Coatings Americas. “These systems are priorities in the repair process and represent two key technological evolutions for both AkzoNobel and the collision repair industry.”
fix auto enters partnership with economical Fix Auto has signed a new partnership with The Economical Insurance Group. “We look forward to our new relationship with Fix Auto, and feel the terms of the service level agreement will greatly benefit the Economical, our policy holders and the Fix Auto organization,” said Keith Hudd, National Vendor Manager, The Economical Insurance Group. “Fix Auto network’s ability to centralize and manage all internal and external processes is a very nice fit for the Economical, especially from a national perspective. These benefits will allow us to develop and deploy future strategic service programs in all regions where we do business and that the level of quality and service from the Fix Auto repair facilities will be consistent throughout Canada.” “Fix Auto is excited about this new strategic partnership and looks forward to working
10 collision Repair collisionrepairmag.com
Keith Hudd of Economical Insurance (left) with Tony DeSantis and Steve Leal of Fix Auto.
with The Economical Insurance Group,” said Steve Leal, Chief Operating Officer, Fix Auto Canada. “I would also like to thank The Economical Insurance Group for recognizing Fix Auto’s ability to effectively measure and benchmark our network’s KPI’s. We look forward to this prosperous relationship.”
news
speakers announced for win conference The Women’s Industry Network (WIN) Conference will be held May 1-3, 2011 at the Westin Gaslamp Quarter, in San Diego, California, and will feature two keynote speakers: Lauren Fix and Jennifer Sertl. Lauren Fix is a recognized automotive and lifestyle expert. She has been seen on nu-
merous network and cable television shows, and toured with O Magazine for Oprah Winfrey’s 2005 “Live Your Best Life Tour,” providing motivational inspiration, consumer information and automotive advice. Fix is an ASE Certified, award-winning professional race car driver who will speak on “Using Your
Feminine Force for Good Car-Ma.” Jennifer Sertl is the co-author of the book, Strategy Leadership and the Soul, will speak on “Transforming Your Organization and Yourself for the 21st Century.” For more info or to register, please visit womensindustrynetwork.com.
BASF to host visionplus conference BASF has announced the VisionPLUS Performance Group Conference, a two-day, interactive conference for collision centre owners and managers. The conference will be hosted in Chicago, Illinois at the Hilton Indian Lakes Resort on May 16 and 17. Attendees will experience discussions and insight into insurance relations from an engaging insurance executive, along with idea sharing, updates and lean strategies. Please contact your local BASF representative to reserve space as seating is limited.
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record year for boyd group income fund Boyd Group Income Fund has reported its financial results for the three and twelvemonth periods ended December 31, 2010. The Fund’s complete fiscal 2010 financial statements and MD&A have been filed on SEDAR. The Boyd Group Income Fund achieved record sales, adjusted EBITDA, net earnings and distributable cash in 2010.
Energy saving Reduced environmental impact Shorter operating cycles Exceptional results Higher profits
nace pARTNERS WITH ibis The International Autobody Congress & Exposition (NACE) has announced it will be one of the sponsors of the International Bodyshop Industry Symposium (IBIS), scheduled for May 16-18 in Barcelona, Spain. Collision Repair magazine is the Canadian Publisher Partner for IBIS. NACE is scheduled for Oct. 6-8 at the Orange County Convention Center in Orlando, Florida. As a sponsor, NACE receives international visibility and marketing exposure among IBIS attendees, publishing partners and other sponsors. NACE plans to hold a press conference on-site at the event.
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May 2011 collision Repair 11
CROSS CANADA + KEYSTONE
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A true combining of forces in the collision repair industry. Cross Canada and Keystone two best-in-class companies are together - ultimately bringing you, our valued customer the highest quality Aftermarket and Reconditioned products in the industry. Our goal is to become your single-source provider of alternative parts for your collision repair needs.
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LOCATIONS SERVICING CANADA Burnaby, BC Richmond, BC Edmonton, AB Calgary, AB Saskatoon, SK (2)
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North York, ON Ottawa, ON London, ON Hamilton, ON Cornwall, ON
Montreal, QC Sherbrooke, QC Quebec (Pintendre), QC (4) Sainte –Madeleine, QC
Rear View Mirror Highlighting the trends that shape the industry.
AutoHouse Technologies and Collision Repair magazine are pleased to present the Rear View Mirror Report for 2011, examining recent trends in the Canadian collision repair industry. All data in the report is derived directly from operational data from management systems, rather than estamatics data. The report compares data from 2009 and 2010 and was gathered from over 100 collision repair facilities from different areas of the country.
May 2011  collision Repair  13
TRENDS TRENDS
There is no question that the last few years have been tough on everyone, not just those in the collision repair industry. Sluggish economic conditions have led to many consumers putting off the purchase of nonessentials. While this does not have a direct effect on insurance paid repairs, or on the purchase of any repair that is absolutely necessary, it has likely led to at least some consumers delaying non-essential fixes, such as cosmollision damage. In addition, a recently released report showed an increase in the number of people driving without insurance. The report was based on data from the United States, but the situation in Canada is probably somewhat similar. Obviously, uninsured drivers aren’t going to be a source of insurance work, but they’re unlikely even to be a source of consumer paid work. If they had the money for repairs, they would probably buy car insurance.
CANADA HAS CHOSEN ITS BODY SHOP
2009 Insurer vs. Consumer Pay Total Sales 8.7% 8.7%
2010 Insurer vs. Consumer Pay Total Sales 8.7% 8%
Why Should I Convert My Body Shop To A Maaco?
92% 91.3%
91.3%
91.3%
Maaco is ranked #1 in its category by Entrepreneur Magazine in its Franchise 500 List Maaco has a Canada-wide 97.4% customer satisfaction rating [measured by CSI Complete]
Maaco receives 75% of its business through retail out-of-pocket customer pay
Customer
Insurer
Customer
Insurer
2009 Insurer vs. Consumer Pay Total Repair Orders
Maaco services more than 500,000 customers / year in North America
Half of Maaco’s Canadian shops achieve average sales of over $1.4 million annually with a 12% average net profit
Canada Has Chosen Maaco,
73.9%77.1%
73.9%
73.9%
Customer
26.1% 22.9%
26.1%
Customer
Insurer Insurer
2010 Insurer vs. Consumer Pay Total Repair Orders
26.1%
[572 more customers / year per shop on average than a traditional body shop]
Maaco Canada average store volume = $1 Million PLUS
Customer Customer
Insurer
Insurer
Customer
Customer
Insurer
Insurer
Now It’s Your Turn. CALL
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14 collision Repair collisionrepairmag.com
Insurer Pay vs. Consumer Pay
The total number of annual sales dollars from insurers at the facilities included in the sample has decreased from $2,147,976 in 2009 to $2,117,690 in 2010. This is a decrease of $30,276, or a percentage decrease of 1.4 percent. Spread over all of the facilities in the sample, it may not seem like much. A decrease of this size may not be statistically significant, and may simply reflect changes, factors and variables other than pure market conditions. For example, the winter months in 2010 were comparatively mild, with less snow and ice on the roads than in previous years. Improved road conditions may have led to a corresponding decrease in collisions. The winter
TRENDS
of 2010/2011, with its attendant heavy snowfall, may very well have reversed these numbers already. A slow economy also tends to lead people to drive less to save on gas. A drop in kilometres driven per motorist will also tend to decrease the number of overall collisions, leading in turn to small decreases in insurance paid work. Turning to consumer pay, however, the decrease is considerably more noticeable. Consumer pay accounted for $205,147 in annual sales dollars at the surveyed facilities in 2009. The same figure for 2010 is $184,315. This is a decrease of $20,832. While this is considerably less than the total dollar decrease of the insurer pay category, the initial numbers were much smaller.
The actual percentage decrease of consumer pay from 2009 to 2010 was 10.2 percent. Consumer paid work has also decreased when considered as part of total sales dollars. Consumer pay in 2009 accounted for 8.7 percent of total sales dollars at the collision repair facilities included in the sample. In 2010, this figure fell to eight percent, a decrease of less than one percent. However, when it is viewed as a percentage of total repair orders, the decrease seems to be more significant. Consumer pay work comprised 26.1 percent of all repair orders in 2009. By 2010, this number had decreased to 22.9 percent. The drop in total consumer paid repair orders seems much more significant when viewed in this light.
Profitability - Insurance Pay
Production Indicators - Insurance Pay
80
10 67%
70
65%
68% 67%
8.7
8
60 50
8.9
50% 49%
6
40
5.1 4.5
31% 31%
4.2
4.4
4
30
2.4
20
2.3
2
10 0
Gross Profit Percentage
Labour
Refinish
0
Parts 2009
2010
Cycle Time
Industry Average:
2009
Touch Time or Units per Day
2010
Top 10%:
2009
2010
Sales - Insurance Pay Industry Average Microtrends
2009
2010
Change
Hours per Repair Order
16.0
16.0
-
Total Hourly Sales Rate
$133
$134
+0.8%
Sales - customer Pay Industry Average Microtrends
2009
2010
Change
Repair Order Sales Dollars:
$205,147
$184,315
-10.2%
As % of Total Sales
8.7%
8.0%
-0.7%
As % of Total Repair Orders
26.1%
22.9%
-3.2%
May 2011  collision Repair  15
TRENDS Insurance Pay Repair Order Sales Dollars 2009 vs. 2010
1000
2009 $812
2010
$807
800
600
$565
$570
$373
400
$407
$371
$382
200
0 Labour
Refinish
Parts
The gross profit percentage for insurer pay work has dipped as well. While the 2009 figure was 50 percent, it has decreased to 49 percent in 2010. While this is only a one percent decrease, it may indicate a general downward trend in collision repair centre profitability. However, it is also possible that a number of other factors have combined to drive gross profitability down temporarily. For example, if slowed economic growth leads to consumers being reluctant to part with cash for non-essentials, then profit will obviously decline. A short-term drop in profitability may be the result, as certain kinds of overhead, such as physical plant, can’t be easily scaled back when less cash is flowing in. Cycle time has decreased from 2009 to 2010. Average
Other
cycle time dropped from 8.9 to 8.7, a percentage decrease of 2.2 percent. Bear in mind, though, that this is the industry average. Looking exclusively at the facilities that occupy the top performing 10 percent, we find a dramatic reduction in cycle time, from 5.1 to 4.5, a percentage decrease of 11.8 percent. In other words, the top performing collision repair facilities across Canada were already well below industry average when it comes to cycle time, and yet still managed to decrease it a little bit further. CRM AutoHouse’s platform generis provides analysis and benchmarking and looks forward to identify specific actions. To learn more visit autohousetechnologies.com or call 1-800-790-6899 ext 100.
!
W NE
www.anestiwata.com 16 collision Repair collisionrepairmag.com
distributed by: ASET (Automotive Spraying Equipment Technologies) 800-628-5449
features
The PPG MVP Conference brought together over 250 collision repairers from across Canada and the United States to learn and network.
Journey’s End By Darryl Simmons
Value and education at PPG’s MVP conference.
F
or those waiting for things to settle down, it’s time to get over it and get moving. Change is the new normal and those unprepared will be left by the wayside. This was the clear message delivered by Jim Berkey as he set the stage for PPG’s MVP bi-annual Business Solutions Conference, the appropriately themed “Journey to Excellence.” The conference took place March 27 – 29 at Rancho Las Palmas Resort & Spa in Palm Springs, California. “Shop owners need to look over the horizon for the next paradigm. This is what will separate those who survive and prosper from those who don’t,” said Berkey in his opening address to 250 or so collision repair facility owners from across North America. “The game is constantly changing and it doesn’t matter how big you are. When things change enough you have to go back to the start.” Berkey referred to changes State Farm Insurance is implementing to direct work on behalf of its customers. Performance and productivity are the new benchmarks as the nation’s largest insurer begins its program of using a national rating system to direct work. May 2011 collision Repair 17
features
Michael McMillan.
Above: Workshops were well-attended. Below: Tom Heck’s seminar “The 7 Qualities of the Leader as Coach.” Above: The first day of the PPG MVP conference kicked off with a round of golf. Right: Don Strong of Concordia Carstar Collision in Ottawa, Ontario. Below: Greg Mario of Regina Auto Body and keynote speaker Greg Smith.
Below: Raili McIvor and Mike Gilliland of Autohouse Technologies.
Left: Robert Minotti of Grand Touring Collision, Lianne Perissinotti of PPG and Ken Friesen of Concours Collision~CSN.
“This means they’re are going to look at repair facilities who perform better rather than those who currently possess top market share. It’s a game changer.” Greg Smith, a world-renowned management and HR consultant and one of three keynote speakers for the event, picked up the same theme without missing a beat. “In this new economy, what made us successful in the past may make us unsuccessful in the future. Companies need to readjust to the new environment, redirect the culture of their organization and reignite their employees.” Using examples drawn from a wealth of experience in the military and as a corporate consultant, Smith explained the differences of today’s hiring processes. “In job interviews today, the younger generation isn’t being interviewed, they are interviewing you,” said Smith. “You’ll have to be comfortable being uncomfortable and always be willing to learn something new.” According to Smith, only 45 percent of the workforce is happy. This is a recipe for high employee turnover. Money is not the
key reason for leaving, says Smith, but poor management is cited as the top cause. The key to keeping people happy is keeping them motivated and empowered. Smith provided a simple solution to the complex problem. He’s developed the SMILE principle, which he says works wonders for managers and leaders: S is for seeking solutions, M is for make yourself approachable, I is for ignite and know your strengths, L is for listen to your employees and E is for execute and take action. “You just can’t make money without good people,” said Smith, who also presented a seminar during the conference, on how to hire and retain the right people. “But you also need the right leadership to get staff to do just about anything. People are not your most important asset, the right people are.” Tom Heck, author of “Duct Tape Teambuilding Games: 50 Fun Activities to Help Your Team Stick Together,” was on hand to speak on the nature of motivation in the modern day with “The 7 Qualities of the Leader as Coach.” Norm Angrove and John Martin of PPG gave attendees access to a wealth of information on 360º marketing systems
18 collision Repair collisionrepairmag.com
through a seminar that explained the basic concepts, and a workshop the following day that showed how to put them into action. 360º marketing systems involve going beyond traditional methods, insight into how generations perceive value and utilizing the tools of social media. Michael McMillan gave the closing keynote for the second day of the conference. His entertaining presentation, entitled “Pink Bat: Turning Problems into Solutions,” focused on a “problematic” plastic baseball bat he received as a child. McMillan emphasized how we must take advantage of other people’s problems, as one person’s problem is sometimes another person’s solution. The final day of the conference was devoted to workshops, placing a heavy influence on lean production and included “Value Stream Mapping: Aligning Your Organization,” “Load Leveling” and “The Lean Journey in Collision –A Road Map to Implementation.” All workshops promoted an interactive approach to learning. For more information on PPG’s MVPprogram, please visit ppgmvp.com. CRM
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profiles of success Larry Doherty, General Manager of the collision centre, and Steve Alizadeh, one of the owners of Brampton Auto Mall.
Expanded
Process The Brampton Auto Mall Collision Centre is expanding and changing the way repairs are done.
T
By Mike Davey
he Brampton Auto Mall is a pretty big car dealership, in exactly the same way that a giant redwood is a pretty big tree. It’s an accurate statement, but it doesn’t capture the true scope. Owned by the Alizadeh family, the Brampton Auto Mall employs over 430 people at various dealerships such as Brampton North Nissan, Mazda of Brampton, Kia of Brampton, Planet Ford, Suzuki of Brampton, Brampton Mitsubishi and Subaru of Brampton. The family also owns Bolton Honda in Bolton and is currently building brand new Nissan and Hyundai stores at the same location in Bolton. In Orangeville they own Motion Mazda. In Brampton, Classic Powerhouse sells motorcycles, ATV’s and Honda lawnmowers and snow blowers. The Alizadeh family also owns Brampton Auto Mall Collision Centre, with Larry Doherty serving as General Manager. Doherty started out in the collision repair business as an estimator in a 3,000 square foot shop in Orangeville, Ontario. Doherty became the owner of the facility in 1976 and he added a Honda dealer franchise to the business offering in 1979. In 2001 a new building was constructed and the shop became part of the Carstar network. In 2008 he sold the operation and came to Brampton to work with the Alizadeh family to help grow the collision repair business at the Brampton Auto Mall.
May 2011 collision Repair 21
profiles of success Barry McKenly and Nayeem Baksh of Brampton Auto Mall. In addition to new paint booths, several from the old facility have been moved to the new one.
To say he succeeded in that mission would be an understatement. A 30,000 square foot collision centre has recently been constructed in an existing 81,000 sq.ft. building to house Brampton Auto Mall’s expanding collision repair operation and a large retail outlet for power products. “Our goal was a new, state-of the-art facility that was designed for the capacity we’re expecting and with growth in mind,” says Steve Alizadeh of Brampton Auto Mall, “I believe that, because of the way this facility is designed and the volume it can handle it will be very attractive to insurance companies and all of our customers.” “At last we will have everything under one roof,” says Doherty. “It’s been a challenge to handle the work load in the space we had.” The added space isn’t simply a solution to the volume problem though. The facility has been designed from the ground up to accommodate a range of new standard operating procedures, new equipment and ongoing training. “We’ve added a new boardroom and we will be conducting training there on a monthly basis. This is part of our new process and standard operating pro-
The facility has been designed from the ground up to accommodate a range of new standard operating procedures, new equipment and ongoing training. cedure,” says Doherty. “Our abrasives supplier and our paint company will be doing constant training there.” The abrasives supplier in question is 3M. Dave Hawthorn of 3M has known Larry for over 20 years and shares his dedication to the industry. “3M and the Brampton Auto Mall are moving forward together with 3M’s standard operating procedures, says Hawthorn. “In a nutshell 3M and the client’s paint company BASF will work together with established repair systems. Larry wants to
22 collision Repair collisionrepairmag.com
come out of the gate running hard when they open this spring.” As the paint supplier to the Brampton Auto Mall’s new collision centre, BASF is also heavily involved in the training and the development of standard operating procedures for the facility. Rick Valin of BASF has known Larry Doherty since Larry’s days with Orangeville Carstar. He notes that Doherty’s foremost dedication is to making his facility the best it can be and improving the industry as a whole. “No matter what event it is Larry is there,” says Valin. “It’s a dedication that he passes on to his staff. BASF will be working very closely with Larry and the staff to prepare for the conversion to BASF products. We’ll also be working closely with 3M and the Brampton Auto Mall to develop and refine standard operating procedures.” The Brampton Auto Mall is also investing in new equipment for the collision repair operation. This will include one 24-foot paint booth and a 27-foot paint booth. “We’re putting in a new 31-foot booth so that we can work on big trucks and cube vans – we couldn’t do that before,” says Doherty. “We’ll also have a small edging booth to do parts of painting on quarter panels and doors.”
profiles of success
The collision repair facility at the Brampton Auto Mall currently employs 25 people. This number will likely increase in the future in order to complement the expanded work space. Finding qualified body techs is an ongoing problem in the industry. Larry Doherty’s solution is to work with current staff to create teams where one member can mentor the other. “We have two teams right now, a father and son team and a team made up of two brothers,” says Doherty. “In the case of the brothers, they split their time right down the middle. One brother does the heavy stuff and the other brother does light hits. We have four other bodymen right now and we’re going to get them to work together. In about a year we’ll be at a full team aspect.” In addition to increased training, team building and new equipment, the new home of Brampton Auto Mall’s collision centre will have new policies and procedures. “We’re doing a study on the cars we repair most often,” says Doherty. “The plan is to buy bumpers for all of those cars and fix them ourselves. Then, if your car comes in with bumper damage, we can give you a new bumper and get the repairs done the next day. I think this is one thing that will attract new insurance customers. It will save on cycle time and as a result, lower car rental costs.” A 24-hour quick repair lane is also part of the new shop and adds to the facility’s repair capability. “We’re going to have two or three people working in that lane and they will be dedicated to turning the vehicles around in 24 hours. Nobody else in Brampton is doing that to my knowledge,” says Doherty. Although challenges are very often the same, there’s no denying that a dealership environment is different from an independent collision repair facility in some respects. “Part of the dealership aspect is that, when you come through the front door, you get greeted in a nice environment,” says Doherty. “The customer is greeted, a work order is prepared and then the fun starts. Everybody in our facility is in touch with everybody else on a regular basis. When we have a breakdown, we’ll know just where the breakdown is.” To aid this, copies of the standard operating procedures will be posted throughout the building. Someone working on the production floor can simply read the post and say, “Here’s the step I missed.” Of course, no matter how well-designed a process is, it won’t work if people don’t follow it.
ABOVE: Larry Doherty stands by one of the new spraybooths purchased for the new facility and installed by AutoQuip. TOP-RIGHT: A 3M demonstration takes place at Brampton Auto Mall’s Collision Centre. 3M and BASF are working closely with Brampton Auto Mall’s Collision Centre to provide training and assistance with developing new Standard Operating Procedures. BOTTOM-RIGHT: Khalid Khan, Internal Coordinator for Brampton Auto Mall Collision.
“We’re going to do monthly audits with our people, and see how well they’re following the process,” says Doherty. “This is going to help our staff improve professionally. For example, say you’re a painter and you paint 25 cars a month using $3,500.00 worth of materials. Your colleague is painting 25 cars a month, using only $3,000.00 worth of materials. The management team will look over the data with the first painter and point out where and how he can improve.” In many respects, the collision centre at Brampton Auto Mall is similar to any other collision repair facility in Canada. However, being part of a large group of dealerships does mean there are special challenges that must be dealt with. “In a dealership repair setting, nothing happens until the vehicle is sold,” says Doherty. “We do try to be proactive. In the case of a used car, once the vehicle is sold, it has to go through the safety inspection and any dents or dings have to be fixed. Because the group is selling over 3,000 used cars a year, we have learned to do quick repairs faster than most places. We’ve got two staff members visiting the dealerships every day. If those cars have bumper damage, we want to get it in the shop and out the door the next day.” CRM
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May 2011 collision Repair 23
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features
the An Above-Par Dollar May Impact Parts Use. By Bruce Carrick
T
he rise in the Canadian dollar is a welcome sign to snowbirds as well as those crossing the border for some Sunday shopping. But for those of us in the collision industry, it may have implications for how vehicles are repaired, or more specifically, which kinds of parts are placed on the vehicle. Given that parts represent over 40 percent of the dollar value of the repair, it is important to understand this trend and where it may be headed. Over the past few years, there has been a gradual decline in the use of OEM parts in the collision repair industry. Since mid2008, OEM crash parts usage has declined three percent, down to about 72 percent of all parts dollars spent as of Q4 2010. This is measured by what is written on the estimate and based on the strong correlation between the types of parts specified by estimators and the parts actually used during the course of repairs.
Major Benefactor
The major benefactor of alternative parts usage (APU) has, of course, been aftermarket parts suppliers. Aftermarket crash parts usage has jumped from 11 percent to over 13 percent in the last two years. Remanufactured parts, such as alternators, engines and wheels, which are also usually provided by aftermarket suppliers, stayed constant at four percent. Recycled parts increased a modest one percent to about 11 percent of all parts dollars. Note that a three percent increase in the dollar amount of APU represents more than this percentage in the actual number of parts that have shifted away from OEMs, since these parts cost less than the equivalent OEM parts. Additionally, assemblies distort the part count which is another reason we report on the parts dollars spent, rather than the number of parts utilized.
The OEM Decline
There are a number of factors that have impacted the decline of OEM parts utilization in the Canadian collision industry, including: Decreases in the cost of recycled parts: Over the last few years, Mitchell has been tracking a basket of the 20 most commonly replaced collision parts in North America. While the prices of OEM, aftermarket and remanufactured parts has risen over 25 percent since 2003, the price of salvage (recycled) parts has actually dropped over 5 percent during this same time period. Ease of ordering and comparing features: In the past, a collision repair
facility might call around to find out about the top three items on a sheet. They might check for that door shell or hood. But they would not think about searching for alternatives for the tail light. Now that estimators can compare all parts for OE, aftermarket and LKQ pricing and availability while writing the estimate, it becomes a no-brainer. Combine this with the ability to automate the parts order from within the shop management systems using email, fax or online connections, and repair facilities have no reason not to source the most cost-effective part. Alternative part supply chain technology infrastructure: Advanced inventory May 2011  collision Repair  25
features
Canadian OEM Collision Usuage (Percentage of Parts Dollars) and logistics systems enable suppliers to ensure part avail78% ability and timely delivery. The merger of various alternative 77% part providers has resulted in 76% fewer, but stronger companies that have now entrenched mar75% keting and sales channels. Insurance rules and the 74% ability to oversee compliance: Repair facilities can now use 73% automated self-audit tools to ensure that they are following 72% the insurers’ best practices for part-type selection (e.g. older 71% vehicles require alternative parts in certain situations). In70% surers also have the ability to Q2/08 Q4/08 Q2/09 Q4/09 Q2/10 Q4/10 review sheets online to ensure © 2011 Mitchell International, Inc. All Rigths Reserved compliance. Based on the above list, one might question why APU has only in- examples of OEMs modifying their pricing structure. For excreased a few percentage points, and OEM suppliers still command ample, Chrysler’s retail price for grilles is extremely low compared to the actual cost of production. This makes it tougher for the afthe lion’s share of parts replacement. Some of the reasons include: OEM suppliers fighting back on price and quality. The termarket providers to compete. Many parts are not offered by aftermarkets: Due to the OEM suppliers have been fighting back: For years, they have questioned aftermarket part quality, despite the great strides in initial cost of production (e.g. headlamp technology), or the quality improvement of the aftermarket industry. There are many specialization associated with that part (e.g. adhesive trim that’s
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26 collision Repair collisionrepairmag.com
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features
Canadian OEM Crash Parts Usage, Q4 2010 (Percentage of Parts Dollars)
Remanufactured 4%
LKQ 11%
OEM Aftermarket
72%
13%
Aftermarket crash parts usage has jumped from 11 percent to over 13 percent in the last two years. Recycled parts increased a modest one percent to about 11 percent of all parts dollars.
© 2011 Mitchell International, Inc. All Rigths Reserved
colour coded to a specific model) it just may not be worth it for the manufacturer. Additionally, the cost of the materials themselves may shrink margins. For example, the margins on boron infused steel are very low due to the high cost of materials. At some point the aftermarket providers are unwilling to invest in the expense of adding these items to their production lines. Reluctance of recyclers to sell non-sectioned parts: The recycler
makes the most profit when they can sell the entire section or assembly. Would an aluminum hood on a front section be separated and sold? Not always. This can reduce the competitiveness of the pricing. Better OEM vendor margins: Higher margins on OEM parts provide a huge incentive to the body shops that are experiencing tight margins on their overall business. Supply issues with some recycled parts: Depending on
May 2011 collision Repair 27
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the time of year and location across the country, some recycled parts simply are not available for less common vehicles. So which direction will crash part utilization take?
Look to the loonie
The answer may lie with the loonie. At the time of this writing, the Canadian dollar is worth over $1.03 USD, which is the highest it’s been in four years. And other than that brief flirt with parity in 2007, the dollar has not been on par with the greenback since the late 1970s. Many OEM parts are manufactured in North America, with a big chunk of them being produced in the U.S. Historically, OEM parts have been priced higher in Canada than in the U.S., even factoring in exchange rate differences. Compare this to aftermarket parts, which are typically produced overseas in low-cost manufacturing environments in countries such as Taiwan. The Taiwanese dollar as well as the Chinese yuan has been appreciating against the loonie,
which could cause aftermarket parts to be more expensive in Canadian currency. Salvage parts, since they are sourced locally, really aren’t impacted by exchange rate fluctuations. But don’t expect OEM prices to drop significantly even if the loonie shoots through the roof. As anyone who has been watching gas prices knows, prices are quick to jump up, but slow to come back down. More than likely OEM parts prices will continue to increase, but at a slower pace than their aftermarket counterparts. This may make OEM parts more competitive vis-à-vis aftermarket, and slow the decline of OEM parts utilization. CRM
Bruce Carrick is Director of Canadian Product Management at Mitchell International. He has nearly 20 years of experience in information technology, operations management, market research and product management, including a dozen years of experience in the insurance and automotive repair industries.
Parts Use Trends According to the Winter 2011 Mitchell Trends Report, Canadian OEM parts use not only decreased compared to Q4-2009, but had fallen to one of the lowest rates in recent history. In fact, the use of OEM parts has declined by 5.6 percent in just two years. The use of remanufactured parts has remained relatively static over the same period. While some of the drop in the use of OEM parts can be attributed to small but consistent gains by recycled parts, another factor is the increased use of aftermarket parts use over the last few years. The fourth quarter of 2010 saw Canadian aftermarket parts use exceed 13 percent of the parts dollars used on an average estimate for the very first time.
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28 collision Repair collisionrepairmag.com
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CSN Collision & Glass
A Pot-of-Gold for CSN at the OIAA London Tradeshow! London, Ontario – March 17th, 2011 – The CSN Corporate Team and Members of Southwestern Ontario celebrate St. Patrick’s Day at the OIAA Tradeshow in London, Ontario. The task is to have the OIAA tradeshow attendees estimate the damage of a front bumper, headlight and quarter panel, generously provided by Jones’ Auto Body ~ CSN. The winner provided his guess being within $4.00 of the true estimate. Congratulations to Russ Colosi from Giffin Koerth as the CSN winner of an iPod Touch!
The fun did not stop there! The London Chapter of the OIAA decided to spice things up in 2011 and have all exhibitors compete for BEST decorated booth for a chance to win the 2012 entry fee...with all efforts put forward, the CSN Team came in 2nd place. We will cherish the memories and vision of our very own Larry French appearing more like an Elton John look-a-like rather than a leprechaun!
The CSN Corporate Team would like to thank Jeff and Linda of Jones’ Auto Body ~ CSN, Dave of High St Auto Body ~ CSN, and Matt of St. Clair Auto Repair ~ CSN for your attendance and support of this event.
With the Luck-of-the-Irish,CSN will continue to increase its participation rates at the OIAA tradeshow for years to come.
About CSN Collision & Glass For more information, please contact us at: Collision Solutions Network 377 Evans Avenue, Suite 102 Toronto, ON M8Z 1K8 1-866-400-4CSN www.CSNinc.ca
Since its inception in 2002, CSN is the only national collision repair network providing independent collision repair owners the freedom to maintain their own operations and identity. The creation of CSN was driven by four successful independent collision repair owners. Their focus was to provide a business solution allowing independent collision repair owners to maintain their individual leadership role within their local communities while working in a team environment to better the industry. Today, CSN represents 5% of Canadian market share with over 90 locations. CSN repairs more than $160 million in collision work with representation in Alberta, New Brunswick, Nova Scotia, Prince Edward Island, Ontario and most recently Quebec. As one of the fastest growing consolidators, CSN continues to stress the importance of quality and excellent customer experiences. Even with the exponential growth achieved since the Company’s commencement, CSN has never compromised its integrity and has stayed true to the original foundation of its business model. CSN strives to be the preferred national network of collision repair facilities, dedicated to excellence and sustainable growth for all stakeholders.
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women of the industry
Passion&Commitment Shellie Andrews has the qualities to succeed. By Mike Davey
S
hellie Andrews is the Operations Manager of Dana’s Collision Center. She’s also the latest addition to the board of the Women’s Industry Network (WIN). Dana’s Collision Center is owned and operated by Andrews’ father, Dana Alexander Although Andrews works primarily in the office, she started off in the wash bay and the mixing room. When it comes to WIN, Andrews has been involved with the organization since before it was even founded. This may seem contradictory, but it’s nonetheless true. “My dad is a big proponent of education and advancement. He found out that the Assured Performance Network was putting on a women’s conference for their members, and he asked if I would like to go,” says Andrews. “That event turned out to be the precursor of WIN. It got the ball rolling.”
Many of the women who attended that first conference ended up forming the core of WIN. Many who attended that conference ended up forming the core of WIN. They’ve kept coming back because they’ve found lasting value in the organization. “I loved the business, loved being in the shop, but I had never been much of one for making myself visible outside the shop,” says Andrews. “It’s given me the confidence to have my say and let my knowledge come through.” Kim White is the Chair of WIN. She has gotten to know Shellie Andrews over the last year through her work with the organization. “We had an opening on the board that needed to be filled, and we immediately thought of Shellie,” says White. “She had already demonstrated a commitment and a passion for what we are doing.” In addition to her passion and commitment to WIN, White also mentions Andrews’ central quality. “In one word, she’s thoughtful,” says White. “When you ask her a question, she takes the time to think it through, think through all the ramifications, good, bad and otherwise. She’s not one to jump to a quick decision. She likes to look at all the angles.” There have certainly been challenges along the way for Shellie Andrews. As she herself notes, there is a certain stigma attached to being the boss’s daughter. “Some people knew and some people didn’t. There’s an advantage to having a different last name. In fact, we have one team member who worked with me for about two years before he found out,” says Andrews. “I think there still is a perception with some people that I don’t 32 collision Repair collisionrepairmag.com
Shellie Andrews of Dana’s Collision Center has recently been appointed to the board of the Women’s Industry Network.
Women’s Industry Network (WIN) is a not-for-profit organization dedicated to encouraging, developing and cultivating opportunities to attract women to collision repair while recognizing excellence, promoting leadership, and fostering a network among the women who are shaping the industry. Collision Repair magazine is pleased to announce that every woman profiled in our Women of the Industry section will receive a membership to WIN.
know as much because I’m female. Now, it’s true that I don’t know as much about repair as the techs do, but there’s a perception with some people that I don’t know as much about the management side as a man would, and that’s not true.” Andrews wouldn’t hesitate before recommending collision repair as a career choice for the right person. “If that’s what you want to do, I say go for it,” says Andrews. “We have female technician at the shop right now. She came to us right between high school and college, and she’s starting on her second block of college training this spring. I think that you have something you want to do, then you should follow it. It’s not just for females. It’s anybody.” CRM
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products
Let’s Get Sticky Our guide to the latest and greatest in adhesives and sealants. By Mike Davey
W
elcome to the Collision Repair magazine spotlight on adhesive products for collision repair. As a category, the products have certainly been around a long time. However, there have been a lot of advances in the chemistry that underlies these useful substances. The most commonly used adhesives in the automotive industry can be sorted into three basic types: urethanes, acrylics and epoxies.
Urethanes
Urethanes are commonly used in situations where high strength is needed, but
flexibility must be maintained. Obvious examples include the front and rear glass. Most urethane adhesives produced for the automotive aftermarket are singlecomponent. However, there are also some two-part urethanes such as the SpeedGrip line from Norton Automotive.
Acrylics
Acrylic adhesives are resin-based and are made up of acrylic or methylacrylic polymers. They are two-components and offer fast cure times. They’re also resistant to sunlight, not easily damaged by water and humidity and can generally withstand big fluctuations in temperature. The one disadvantage of acrylics is that they’re complicated to produce, as they must be formed into a polymer, suspended in a catalyst, and cured.
Epoxies
Epoxies are also two-component adhesives, with the first part being a resin and the second a catalyst. The resin is made up of short chain polymers, and the catalyst is made up of polyamine monomers. When the two substances are mixed together, the molecules link up to form new bonds. This is a large part of what gives epoxy adhesives their strength. Another advantage of epoxies is that they can have their cure times decreased by force heating. All three of the above categories are represented in our adhesives product guide. Please make sure to research any product thoroughly before making any purchases. Product information on the following pages is based on information submitted by the manufacturer. The appearance of a product in this section does not constitute an endorsement of that product from Collision Repair magazine or its staff. May 2011 collision Repair 35
products
Henkel Canada
Rubber-Seal Medallion
Blue Stick Threadlocker is part of the Loctite line of adhesives from Henkel Canada. It is a medium strength, removable grade threadlocker that was developed in a stick formulation for maximum ease of application on all types of fasteners. Fasteners treated with Blue Stick Threadlocker can still be removed with hand tools. Henkel Canada says it protects threaded parts from
DTAM (Direct To All Metal) Epoxy Non-Sag Seam Sealer is a twocomponent, epoxy seam sealer formulated for automotive and truck applications. It can also be used in light industrial applications. Rubber-Seal Medallion says that DTAM Epoxy Non-Sag Seam Sealer can be applied directly to properly prepared cold-rolled steel, galvanized steel, aluminum, sheet molded compound (SMC), fibreglass, fibre reinforced plastic (FRP) and other plastics. It can also be applied to sanded 2K primer surfaces and pre-treatment primers including self-etch
vibrational loosening and corrosion and suggests using it for frequently serviced parts. It is pocket and toolbox friendly, as the stick will not leak, spill or run. Accordig to the company, it is ideally suited for use with hardware ranging from 1/4” to 3/4” in size. Henkel Canada recommends pretreating fasteners to ease in larger assembly and service jobs.
primers. It has a work time of approximately eight to 12 minutes. It offers a sanding and paint time of between 30 and 45 minutes. DTAM Epoxy Non-Sag Seam Sealer reaches a full cure in six hours.
> www.nortonautomotive.com
> www.finalsand.com
blue stick threadlocker
DTAM non-sag seam sealer
GOT HAIL? Finest Trained Catastrophe Team
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www.hailrepair.ca 36 collision Repair collisionrepairmag.com
info@hailrepair.ca
products
Wurth Canada
Lord Corporation
Wurth Canada’s Replast Easy is a urethane structural adhesives designed to bond and repair all plastics, fibreglass, SMC, metal and glass. It uses a dual-mix cartridge system, and can be used in most automotive and heavy truck applications. Replast Easy is also OEM approved. The main difference distinguishing different members of the Replast Easy line lies in the open, work, clamp and sanding times. The range goes from 893.50002, which offers an open time of 30 seconds, working time of 45
Lord Corporation says Fusor 019 duplicates a brushed OEM/factory seam appearance. It can be applied directly to bare metal, eliminating the primer and pre-treatment steps. A proprietary colour-changing formula tells users that the product is curing properly and when it is ready for painting. The company also says that it is easy to use and reduces cycle time because it is faster to apply when compared to traditional seam sealing procedures and products.
seconds, clamp time of two-and-ahalf minutes and sanding time of five minutes, all the way up to 893.50006, offering an open time of 35 minutes, working time of 50 minutes, clamp time of 90 minutes and sanding time of three hours.
It can be used on truck bed seams, tooled door skin seams, floor pan seams, core support seams rear-body panels, tail-light pockets, under hood area, aprons and strut towers. Fusor 019 contains phosphatizing agents, which protect against corrosion with no additional primers or pre-treatment necessary.
> www.wurth.ca
> www.lord.com
Replast easy
Fusor 019
May 2011 collision Repair 37
products
Lord Corporation
Norton Automotive
Lord Corporations says Fusor 130 Rigid Acoustical Foam provides noise, vibration and harshness (NVH) properties for a quieter ride, tough compressive strength for maximum energy absorption and is a super-fast application, providing full foam expansion in three minutes. Fusor 130 Rigid Acoustical Foam can be used in automobile pillars, rocker panel areas, and in other locations where the car manufacturer has used this type of foam to reduce and eliminate NVH. Lord
Norton Automotive is known around the world for its line of abrasive products. In addition, Norton Automotive offers a full line of low VOC adhesives, sealers and coatings. The line includes numerous entries, including brushable sealers and one-component seam sealers. The company says they are all designed for fast, sure, easy work around
Corporation says Fusor 130 allows the collision repair facility to reinstall the same material quickly and easily allowing the shop to return the vehicle to pre-accident condition without extending cycle times. Lord Corporation says the two-component foam duplicates OEM appearance and function.
the shop. The adhesives are ultra fast and have a high strength bond. Norton also carries a full line of joint and seam sealers as well as brush and spray protective coatings. Norton Automotive says the line is made using high quality components and offers a match with OEM colour and texture. According to Norton, one of the benefits of the line is that it can be used for multiple applications with minimal inventory.
> www.lord.com
> www.nortonautomotive.com
Rigid acoustical foam
Norton Adhesives
3M
panel bonding
Key products from the 3M line of adhesives include a number of adhesives designed for panel bonding and plastic repair. The 3M Panel Bonding adhesive is a two-part epoxy cartridge system designed for bonding replacement body panels. 3M says it seals and bonds steel, aluminium and SMC securely in a single operation. The company says 3M Panel Bonding adhesive delivers the highest bonding strength in the industry at over 3000 pounds per square inch (psi). Being an epoxy based product, it accepts polyester fillers and putties. In addition, 3M Panel Bonding Adhesives contains rust inhibitor. 3M says this allows technicians to bond and seal in just one step. 3M says collision repair centre profitability can be increased by repairing bumpers easily and quickly using the 3M EZ Sand plastic repair product, combined with the peel and stick application of the EZ Fix Patch, providing a reliable, high strength repair. 3M EZ Sand can be used to repair SMC, FRP, and other rigid plastic parts. The product is epoxy based to provide easier sanding and excellent featheredge.
> www.3MCollision.com
38 collision Repair collisionrepairmag.com
products
Henkel Canada
Rubber-Seal Medallion
The Instant Gasket is part of Henkel’s Loctite line of automotive adhesives. It is designed to make high performance, leak proof gaskets in one minute so that equipment can be returned to service immediately. It is blowout resistant, and the company says it outperforms precut gaskets. It forms a non-rigid flange composed of silicone and polyacrylate, and is completely waterproof. Loctite Instant Gasket is available in three diffent sizes, a five ounce cartridge, a 90
The RS Series from Rubber-Seal Medallion comes in three different versions, RS-7130, RS-7160 and RS 7190. The last two digits indicate the maximum open time for each product; 30, 60 and 90 minutes. The RS-Series is designed to be used on door skins/quarter panels and large panels. RS-7190, pictured here, is designed for use on medium to large panels. The company says
millilitre aerosol can and a 190 millilitre aerosol can. Each comes six to a case. The Loctite line contains a wide variety of other products, including super glues, contact adhesives, two component epoxies, threadlockers, aerosols, sealants and surface treatments.
the RS series. offers super strong and tough adhesion with no soft spots. It will bond to any type of properly prepared automotive or truck metal, SMC and fibreglass. The RS series is a non-sagging formula offering anaerobic cure acceleration when the product is sandwiched between two pieces of metal. Rubber Seal Medallion guarantees performance when it is used according to directions.
> www.henkel.com
> www.rubber-seal.com
loctite instant gasket
Rs Series
Wurth Canada
sprayable seam sealer
Sprayable Seam Sealer from Wurth Canada is a sprayable joint sealing compound for restoring original surface structures after accident repairs. Wurth Canada says that Sprayable Seam Sealer is fast drying, paintable and free of both silicones and isocyanates. The product has a curing rate of 3.5 millimetres at 20 degrees Celsius and 65 percent humidity, leading to a full cure in approximately 24 hours. The newly developed application gun allows a cartridge to stay ready for use for up to several weeks. Sprayable Seam Sealer is suitable for use in replicating seams in lap joints, engine bays, trunk floors, vehicle underbody and wheel arches. Wurth Canada says it offers good adhesion properties on galvanized, hot galvanized and originally primed surfaces.
> www.wurthcanada.com May 2011 collision Repair 39
products
Catalyst Industries
Norton Automotive
The Sonic Bond Universal Plastic Repair Kit from Catalyst Industries bonds most metals, glass, rubber, plastics and other non-porous materials. Each kit includes Sonic Bond Accelerator, Sonic Bond Adhesive, Rapid Fill Powder and a spray applicator. These components combine to become an extremely versatile repair kit for many different applications. Some suggested uses
Norton has announced an upgrade to the SpeedGrip Structural Adhesives Auto Line. The SpeedGrip line includes products for bonding steel, sheet molding composite (SMC), fibre reinforced plastic (FRP), fibreglass, rigid plastic, semi-rigid plastic, flexible plastic and panel bonding. Adhesives comprised of acrylic, urethane and
for collision techs are headlight bezel tabs, air conditioning vents, and vehicle interior panel tabs. The product cures in four seconds. Sonic Bond Adhesive can be used on its own, or the Rapid Fill Powder can be used to reinforce and strengthen broken joints and also to build missing pieces. The Accelerator is used to cure the adhesive when the parts do not provide an exact fit.
epoxy bases intended for various applications can all be found in the SpeedGrip line. The acrylics utilize glass bead technology for correct panel spacing and bond control. The urethane portion of the line is made of 100 percent solids, so that there is zero shrinkage. According to Norton, the epoxies are ideal for undetectable SMC repairs. Norton also carries a number of accessories for SpeedGrip, including guns, mixing tips, cloth and tape.
> www.finalsand.com
> www.nortonautomotive.com
Sonic bond
40 collision Repair collisionrepairmag.com
speedgrip
products
Wurth Canada
3M
Seam & Joint Sealer from Wurth Canada is a permanently flexible adhesive sealant for automotive and industrial maintenance. According to Wurth Canada, it is a high-performance sealant with excellent adhesion to a variety of materials. Wurth Canada’s Seam & Joint Sealer is paintable, nonstaining, non-sagging and remains permanently flexible. It must be applied on a dry, primed surface that is free of oil and soap for maximum protection from corrosion. It is unaffected by temperatures ranging from -40 °C to 90 °C, and for a short time all the way up to 120°C. Seam & Joint Sealer ad-
3M has recently launched the 400ml product line, designed w i t h t h e t r u c k re p a i r industry in mind. Formulated and manufactured by 3M Canada, the twopart urethane line is used to adhere SMC, FRP, and Metton body panels to each other and to metal frames. Truckline products are available with a variety of work times, ranging from three to 35
heres to a wide variety of materials, including masonry, glass, metal, paint, wood, fibreglass, porcelain and polycarbonate. It can be used to bond metal, glass, most types of plastic, fabrics and gaskets. Wurth Canada says Seam & Joint Sealer dries tack free in two minutes and is paintable by 30 minutes. Up to 24 hours is recommended to ensure a complete cure. Seal & Joint Sealer is available in both white and black. It will not suffer decomposition if it is stored and applied as directed.
minutes. The line is completed by two epoxies. The 3M SMC/FRP Repair - 90 two-part epoxy is used to bond steel, aluminum, SMC, FRP, Metton, and body panels to each other and to metal frames without primer. This product has a 90 minute work time, while the 3M Rigid Parts Repair is a two-part epoxy used to repair SMC, FRP and other rigid plastic parts. This faster working product can be used as a filler and adhesive.
> www.wurthcanada.com
> www.3MCollision.com
seam & Joint sealer
TruckLine
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May 2011 collision Repair 41
products
3M
foams & sealers
3M offers a complete line of foams and sealers that the company says will allows accurate matching with OEM finishes. The combination of varied flow rates and 3M’s OEM tip kit provide the tools needed to reproduce any OEM appearance. Self-Levelling Seam Sealer is designed for roof ditches and rear body panels, including tail light areas, wheel well flanges, etc. The 3M Heavy-Bodied Seam Sealer is designed for use in vertical or horizontal seams to match OEM sealers. 3M Bare Metal Seam Sealer is a formulation with rust inhibitor reducing process steps (no primer required). Combine these products with the 3M OEM Sealer Appearance Kit to match OEM appearance. Repair is completed with foams with different expansion and flow rates, 3M Rigid
HUGE CAPABILITIES. TINY FOOTPRINT.
Pillar and 3M Flexible Foam.
> www.3m.com
Next Issue Spray booths
Affordable pulling power that can fit in almost any bay.
Free up bigger racks for bigger jobs with the EZ Liner Express – a versatile yet compact pulling system and allpurpose workstation. With it, you can fix more vehicles at once, reduce cycle times and increase productivity. And you’ll do it all at a price of less than $10,000. Harness the versatility and affordability of the EZ Liner Express, and add value to your shop today.
Spray booths are a necessary part of the business for almost any kind of refinish work. Next issue, we shine the spotlight on spray booths and see what’s being touted as the latest and greatest technology for collision repair centre refinishing operations in 2011. We will also be bringing you tips on safety, maximizing profitability and painting tips from the pros. Watch for it in the July issue of Collision Repair magazine!
EZ LINER EXPRESS SPECIFICATIONS Minimum Footprint: 4,267 mm x 5,181 mm (14’ x 17’) 6 Working Heights: 114 mm to 939 mm (4.5” to 37”) Lift Capacity: 2,494 kg (5,500 lbs.) Max Pulling Force: 5 tons (44 kN) at the hook Unique telescoping design fits easily in narrow bays
Call 800-445-9262 or visit chiefautomotive.com/ez/cr
42 collision Repair collisionrepairmag.com pCHIEF0002_AD_Huge Capabilities_CollisionRepair.indd 1
3/15/11 4:45 PM
products
DISTRIBUTOR INFOrmation: 3M 300 Tartan Drive London, Ontario N5V 4M9 Phone: 1.800.3MHelps Fax: 1.800.479.4453 www.3M.com Please contact your 3M automotive aftermarket professional sales representative at 1-800-3MHelps for further information on 3M products.
Rubber Seal Products Canadian distribution by Crescent Industries 1400 Bonhill Rd. Mississauga, Ontario L5T1L3 Phone: 905.364.5093 www.crescentindustries.ca
Wurth Canada Limited 6330 Tomken Road Mississauga, Ontario L5T 1N2 Phone: 905.564.6225 Fax: 905.564.3671 Email: info@wurth.ca Wurth Canada has 360 sales representatives in Canada from St-Johns, Newfoundland to Victoria, British Columbia.
Catalyst Industries,Inc./Catalyst Direct 3833 West Industrial Loop Coeur d’Alene, Idaho 83815 Phone: 208.667.4066 Fax: 208.765.5398 www.finalsand.com www.catalystdirect.biz Henkel Canada 6685 Kennedy Road Mississauga, Ontario L6T 3A5 Phone: 905.696.2770 Fax: 905.564.7325 www.henkelna.com For more information on Loctite, call 1-800263-5043 ext. 7151 and order the Loctite(r) Automotive Aftermarket Adhesive and Sealants Guide (LTC-1299). Lord Corporation Larry John: 4818 Eagle Creek Lane Gib Harbor, Washington D.C. 98335 Phone: 253.858.7853 Kevin Creegan: 19045 Story Road Rocky River, Ohio 44116 Phone: 440.333.5750 www.lord.com LORD Fusor products can be purchased at most PBE jobber distributor locations in North America. Norton/Saint-Gobain Abrasives, Inc. 3 Beach Road Hamilton, Ontario L8L 7Y5 Phone: 1.800.387.9162 ext. 2284 Fax: 905.547.8593 www.nortonautomotive.com May 2011 collision Repair 43
point blank with piercey
KudosTooARA Ontario’s recycling association is getting it right. By Sam Piercey
“Our Focus is Spray Booth Filters!”
J
ust recently, I was invited to attend the annual convention of the Ontario Automotive Recyclers Association (OARA. All I can say is this, “Boy, what an organization of guys and gals in the recycling business!” These people are getting it, and they really have a great organization. They are donating money to quite a few different charities, and they really put on great convention, with lots to see and learn. The trade show in particular really showed a lot of new aftermarket stuff, such as front end, steering parts, con-
things in the industry and help their members work with us. With that idea in mind, they asked myself, Larry Jefferies of Carstar and Flavio Battilana of CSN to sit on a panel for an hour so they could pick our brains. We gave them great information on how they can help us, and they really focused on what we had to say. In their own words, “On behalf of all auto recyclers, we appreciate having Sam, Flavio and Larry participate on a panel that’s main purpose was to build bridges so we can all work together more effectively. It was clear to all of those in
OARA can provide “Green pamphlets” to hand out. • • • •
Pit Filters Ceiling Filters Door Filters Intake Filters
We stock filters for 100s of makes and models of spray booths! Call For your FilTer quoTe!
www.servairfilters.com Call Toll Free: (866)
Keith Hayward “The Filter Guy” Cell: 416-801-5218
402-1221
36 Armstrong Ave., Georgetown, ON L7G 4R9
44 collision Repair collisionrepairmag.com
trol arms, steering racks, sheet metal, headlamps and tail lamps, side mirrors and on, and on. There were things that I never knew existed. This will really help your bottom line. If you take the time to shop, you will be surprised at what you can buy. I really think that the guys and gals in OARA are making some major progress towards their goals. We, as collision repairers, should be ashamed of ourselves. Imagine the money they have donated (over $1 million dollars in the last two years. - Ed.), the organization of their association, and the sheer amount of participation. In comparison, we are doing very little as an industry. We are actually doing nothing. OARA is really focused on promoting green initiatives and recycling, and we need to look at how we can improve cycle time and the bottom line. I believe we can do this by buying more like-kind-quality (LKQ) parts and thinking green. OARA is putting a lot of effort into investigating how they can improve
attendance that each respective stakeholder was looking for solutions in the collision repair process – and for auto recyclers to be hosting this event, with our ‘Green Parts’ message at the forefront was priceless.” OARA can provide “Green Pamphlets” to hand out to our customers to help explain what exactly “recycled parts” are. It makes our sale much easier when doing an appraisal, and they also show what the recycler does, what kind of warranty they carry, etc. I suggest, as collision repairers across Ontario, that you take a good look at OARA and give them a call. I think you will see the difference and it will improve your bottom line! My hat goes off to the guys and gals in OARA. I can sum up in just two words: great job! CRM
Sam Piercey is the co-owner of Budds' Collision Services in Oakville, ON.Samisalong-timeCoyotemember and sits on many boards and committees. He can be reached at sam@buddscollision.com.
blair.assoc@rogers.com lucchampagne13@videotron.ca ken.coulter@specialtysales.ca mike.fazackerley@matthewscott.com steve.gushie@gpi.com mike@hollandenterprisesinc.com ro8997@gates.com brad.shaddick@federalmogul.com
Bill Blair Luc Champagne Ken Coulter Mike Fazackerley Steve Gushie Mike Holland Ray Osika Brad Shaddick
This ad space generously donated by the publisher.
john.vanstone@specialtysales.ca
Shad’s Board of Directors: 905.990.0349 514.945.1299 905.816.0011 905.542.8855 416.679.3003 289.218.6650 519.759.4141 905.761.2681
905.816.0011
For more information on how you can become a sponsor of or make a donation to SHAD’s R&R “For the Kids”, please contact one of our board members directly.
Station Creek Golf & Country Club - Stouffville, ON June 9th, 2011 10:00am shotgun start
Please consider joining us for the 38th annual SHAD’s R&R with all proceeds continuing to benefit Muscular Dystrophy Canada.
$3,666,700
Chairman: John Vanstone
Since 1954, Muscular Dystrophy Canada (MDC) has been committed to improving the quality of life for the tens of thousands of Canadians with neuromuscular disorders and funds leading research for the discovery of therapies and cures. Since 1973, SHAD’s R&R has supported these efforts by donating over $3.6M to MDC. Now entering its’ 38th year, the automotive aftermarket continues to fulfill founder Fred Shaddick’s original mission of “For the Kids”.
That’s how much our generous sponsors have donated to the SHAD’s R&R “For the Kids” charitable golf tournament over the last 37 years!
SHAD’S R&R
(and we’re just getting started)
What a TRIP it’s been!
prairie view
TrainingCrisis It’s not just on the way, it’s here. By Tom Bissonnette
I
recently had the privilege of spending a few days out in St John’s, Newfoundland presenting an advanced estimating class on behalf of the PPG MVP training series. I always enjoy my time out on The Rock and this visit was no exception. As I was preparing for this class, I was overwhelmed with the amount of technical information that is required to repair even the most common of today’s vehicles. The tremendous advances in manufacturing technology driven by the desire to make safe, fuel efficient vehicles at a reasonable cost is nothing short of astounding. Boron steel, tailor rolled blanks, laminated “quiet” steel; if you do not know what this stuff is, you had better find out. What is repairable and what is not repairable has the potential to cause even the most forward thinking shop a major headache if they improperly repair a vehicle that gets into another accident. For many shops, technical training is something
that has been all but ignored. I-CAR is hit and miss in some areas of this country. Knowing what I know, I think it would be great idea to contact Andrew Sheppard and find out how to get classes rolling in your area. This technological nightmare is not limited to just the high-end vehicles but is increasingly being used on pretty much every daily driver that you see on the road. The new Honda Civic is composed of more than 50 percent high strength and alloy steels. Chrysler Sebring and Ford Focus use an array of high strength and boron steel. This is all not to mention the complex electrical systems where simply disconnecting the battery would eliminate any damage to computers and components. In the United States, the Collision Industry Conference (CIC) has initiated a “Repair Standards Advisory” committee and they are currently working to lay the ground work for their organization to define the demand for repair standards based upon
16-18th May 2011 Hotel Arts Barcelona, Spain
IBIS brings together collision repair leaders and influencers from all sectors of the industry and all over the world to discuss issues, exchange ideas and share information on a global stage. If you need 2o/20 vision on the future of the collision repair industry, and you want to get together with the people who will be making it happen, then you should be at IBIS 2011.
Reserve your place today... call Nicki Cooke on +44 (0)1296 642826 nicola@ibisworldwide.com
www.ibisworldwide.com
IBIS 2011 is sponsored by
2011 half horizontal.indd 1 46 IBIS collision Repair collisionrepairmag.com
04/02/2011 16:08:03
prairie view
interviews and research with collision repairers, insurers, equipment manufacturers, paint system manufacturers, vehicle manufacturers and others. The business case will also define the scope of the new organization and how it will develop standards, how the standards will be used by the collective industry and how the organization will be staffed, governed and funded.
For now, here is a list of some technical websites that can help you: • www.collision.alldata.com (subscription site) • www.asashop.org • www.degweb.org • www.abrn.search-autoparts.com • www.genuinegmparts.com • www.i-car.com (check tech information)
We have to give the issue of training some serious attention. Is this something that we need to look at in Canada? Wouldn’t the consumer like to know that the shop repairing their car has the knowledge and tools to repair it properly? What does this mean for shops that are not willing to get the training and equipment to repair the vehicles of today and tomorrow? Tough questions. Even tougher answers. Folks, we have to give the issue of training and repair standards some serious attention. Your future as a viable business may depend on your willingness to get engaged in this process.
• www.mic.mymitchell.com (subscription site) • www.moparreapirconnection.com • www.motorcraftservice.com (subscription site) CRM
Visit
trainingm
atters.ca for cour ses
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.
See these and Over 50 Other Name Brands at www.CEGroup.com
Call Your Local Distributor at 888.877.4450 DISTRIBUTORS UTORS Atlantic Provinces, Ontario & Quebec: Call Jerry Snyder at 1-800-838-6111
Prairie Provinces: Prairie Alberta Booth & Bodyshop Equipment Call Stan Barlow at 1-866-433-6321
British Columbia: A.F.E. Call Mike Chornoby at 1-877-388-4523
may 2011 collision Repair 47
who’s driving?
IdealAttitude Practice the human skills.
By Jay Perry
B
“
usiness is where you practice your human skills. It’s where you grow.” That quote from Andrew Cherng, Founder and CEO of Panda Restaurant Group, is probably the best description of the ideal attitude toward business I have ever found. I have stopped believing in a “key to successful business.” I have come to believe in many keys. Sort of like a combination lock, where you need all the numbers to line up before everything starts to come together and work well. If you forget to practice your people skills at every level, things quickly unravel.
Differentiator
There must be a quality product delivered in a timely manner with competitive pricing. There must also be something that differentiates you
shows up in pride of identification with the company, also known as engagement. Another area where the people or “human” skills are needed are in relationships with vendors. When I speak of vendors I am referencing not only the people that sell product and services to you, but also the people that believe in your business enough to refer customers. What are you d oi ng to promote s mo ot h practices and ease of doing business? Are you constantly evaluating the offering? If you are difficult to deal with how long do you think these people will want to do business with you?
Connection
It is easy to see the connection with people that refer business to you, but have you also thought
It is easy to see the connection with people that refer business to you. from all of your competitors that can also deliver the same product, timeliness and pricing. That differentiator is based on people skills. Let’s face the truth in our industry. There are far too many shops vying for far too few jobs. That puts us into a consumer’s market. Could it be clearer that the business that figures out how to deliver a superior customer service experience is going to be the winner in the consumer’s market? This is also true of attracting and retaining the best of the best employees. I have seen many examples of employees staying with a company in tough markets where they are being lured to leave their place of employment. They stay because they want to be a part of something bigger and better than themselves. If the “human skills” Andrew Cherng spoke of in the above quote are not being practiced within a company there is no longer an incentive for that employee to stay and be a part of something bigger and better.
Engagement
The human skills of the leader of the company can and do make the difference for the employees. This 48 collision Repair collisionrepairmag.com
about the people that you buy from as having needs that you might be able to fill? I think that if there is anything, anything at all, that can be smoothed out inside of those relationships, then it serves you well to do so. This is especially true as you go through the normal ups and downs of business. Keep your mind open to the fact that you may (let’s be honest: probably will) need their help to grow your business. That help could be in the form of direct referrals or lines of credit. It could even take the form of assistance as you grow with training and supply-chain redesign. So there are three areas that you must continuously work on refining your human skills, customers, employees and vendors. It is by keeping on top of these relationships that you can continue to be 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.
IT’S ALL ROLLED INTO ONE
ASRW 2011 // ORLANDO, FL USA THE PREMIER EVENT DEDICATED TO THE AUTOMOTIVE SERVICE & REPAIR INDUSTRIES Exhibits: October 6–8 // Conference: 5–8 // Orange County Convention Center
www.ASRWEVENTS.com
recycling
ElectronicData Recyclers and repairers can benefit from using the same language. By David Gold
N
ever before has it been so important for the auto recycling industry to utilize a system to describe and grade its parts. Vehicles are becoming more complex every year and the user options, codes and features are very intricate. Procuring the correct part type and determining its interchangeability are now largely an electronic process. This is a big step forward and will help to mitigate mistakes. Our desire is to paint the most accurate description of our parts. Auto recyclers go to exceptional lengths to indicate the imperfections with their parts and in no way look to pass off a part as being perfect when it is not. In fact, all of the parts grading standards our association has developed are used to describe areas and types of damage. If anything, auto recyclers look to overstate the damage of their parts to reduce any surprises on delivery. Recyclers have inventory specialists on staff that review each vehicle and their job is to denote the
quality parts that were not damaged in the collision and make them available for sale. We utilize shop estimating software similar to that used in the collision repair industry to identify each specific part and note the various components that make up an assembly. The parts descriptions auto recyclers use are meant to assist in answering questions about what parts type we have and we attempt to include details such as trim, glass, suspensions and even paint codes. Like our parts grading initiatives, these codes are displayed along with our parts and are there for everyone’s benefit. The first step in parts grading is to be able to accurately describe the damage location. The Automotive Recyclers Association developed a “Damage Locator” that breaks down any given body panel into seven to nine increments so damage can be pinpointed accurately. The second step in the parts grading process is to accurately describe what kind of damage is on the
SWITCH OUT 2011
Participating in Switch Out is more important than ever! The Canadian Steel Producers Association has enacted “Zero Mercury” Scrap Purchasing Policy. This affects all businesses in the scrap steel supply chain, including automotive recyclers, dismantlers, hulk crushers and shredders. Canadian Steel Producers Association Member Companies
Participating in Switch Out will ensure that your business meets the requirements of this policy.
Metal Shredders & Brokers
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50 collision Repair collisionrepairmag.com
recycling
body panel. This can range from no damage, to a paint problem, a scratch-surface only, rust on surface, parking lot dings, lip, buckle, rip or crack, hail, bent, dent, crease or burn problems (just to name a few). The third step in the process rests on describing the extent of the damage. The United Recyclers Group (URG) has come up with a “URG Damage Standard” card. It’s a standard credit card size and covers the URG standard of
system that automatically grades parts. Collision parts that are not OEM are not applicable for “A” grade parts status. Only the highest quality “A” grade parts get preferred exposure on automated estimates. Grading is essential for successful parts exchange from recycler to the collision repair industry. Auto recyclers have bonded together to create this common language of the used OEM part.
Grading is Essential for Successful Parts Exchange. approximately one hour of damage for each card needed to cover the damage. For the first time, an “hour” can mean the same thing from one recycler to another. The fourth step to a standardized parts process is using “standard cut lines.” These help illustrate where recyclers have cut front, rear, roof and quarter sections. Collision repairers can also use standard cut lines to describe where they need a part to be cut. For body parts to qualify for “A” grade, they must need no more than one unit of repair time. Also, all parts and components will be OEM. Some recyclers have an inventory management
The salespeople in our own facilities use this data when completing orders and it is all accessible to our customers to use and benefit from. Let’s make use of this common language to ensure that there are no surprises on delivery! CRM
David Gold is the co-owner of Standard Auto Wreckers, an auto recycling facility with locations in Toronto, Ontario and Niagara Falls, New York. He can be reached by telephone at 416-286-8686 or via e-mail at david@standardautowreckers.com.
May 2011 collision Repair 51
features
Repairrecyclerinsurer synergy Highlights from the Ontario Automotive Recyclers conference. By Mike Davey
52 collision Repair collisionrepairmag.com
The OARA conference collision repair panel: Flavio Battilana of CSN, Sam Piercey of Budds’ Collision Services and Larry Jefferies of Carstar.
T
he Ontario Automotive Recyclers Association has shown a lot of leadership, but it’s just as important to make sure that leadership continues. That was one of the messages delivered by Janet Taylor of Summerhill Group at OARA’s annual conference. Taylor was there to update OARA members and other interested parties on the current state of the mercury switch out program. The OARA conference took place at the Airport Marriott Hotel in Toronto. Steve Fletcher, OARA’s Executive Director, opened the conference and introduced the event’s keynote speaker, Rob Rainwater of Jerry Brown Auto Parts. Rainwater’s chosen topic was “The 14 Golden Rules for Selling Auto Parts” with the content slanted specifically for managers. Steve Fletcher took to the podium again in the company of Rebecca Spring of Summerhill Group to update attendees on the past, present and future of the highly successful Retire Don Fraser of Aadco Auto Parts and Your Ride program. Next up were Brigitte Pe- his granddaughter. sant of OARA and Jennifer Barbazza of Ontario Tire Stewarship discussing the joint OTS/ OARA Tire Takeback Days program. Following was the first of two panel discussions for the day. John Aird, Workplace Safety and Prevention Services (formerly OSSA), Michael Carcone of Carcone’s Auto Recycling and Lisa Sticca, Thunder Bay Auto Parts discussed Health and Safety Trends in the Industry. John Couper of Couper Marketing Solutions spoke on essentials of Green Parts Marketing. “The Green Parts strategy was intended to do several things. One thing we wanted to do was to elevate the brand, get it away from the junkydard dog image, and give it a clean, green image. The other
features
below: Janet Taylor of the Summerhill Group. TOP RIGHT: Brigitte Pesant, Director of Business Development for OARA and Susanne Robins, Director of Promotions and Education, Ontario Tire Stewardship (OTS). CENTRE RIGHT: Ed MacDonald of Maritime Auto Salvage and Steve Fletcher. MacDonald gave a lunch presentation titled “A Canadian’s Perspective on the International Automotive Recyclers Association.“ BOTTOM RIGHT: Jeff Smith of Car-Part.com, Terry Bourdage of Bickell Auto Parts and Jens Sorensen of Car-Part.com.
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thing that it was intended to do was increase that consumer acceptance of the product as a category.” Couper gave attendees insight into concrete fundamentals that could be put into practice in the recycling facility. In essence, this means making sure the brand experience matches the brand promise. Steve Kriter of Audatex presented on current trends in the auto insurance and collision repair industries and how those trends impact the auto recycling industry. Kriter began his presentation by noting the symbiotic relationship between collision repairers, recyclers and insurers. “By reducing average paid loss, more vehicles are repaired, which certainly affects collision repairers, and more parts are sold,” said Kriter. Kriter showed that people are holding on to cars longer, leading to a decrease in salvage at auction. A sluggish economy may be responsible and is almost certainly to blame for another trend Kriter outlined: an increase in uninsured drivers. “The number of uninsured motorists has climbed almost four percent since 2007. That has an impact on the number of vehicles that are being repaired,” said Kriter. “As the number of vehicles being repaired goes down, less parts are being sold.” The second panel discussion of the day took place following Kriter’s presentation. The Repairer - Recycler - Insurer Roundtable was comprised of Larry Jefferies of Carstar, Flavio Battilana of Collision Solutions Network and Sam Piercey of Budds’ Collision. The three answered and discussed questions from the attendees, with a focus on how recyclers can sell more parts. This ended with
• • • • • • •
a reception in the trade show area, followed up by a charity casino in the support of the OARA Foundation Scholarship Fund. The conference continued on Saturday with the OARA annual general meeting and elections, and different seminar streams for management and staff members. Highlights of the employee stream include a specially tailored version of Rob Rainwater’s “14 Golden Rules for Selling Auto Parts” presentation, a seminar on brokering parts in real time by Jeff Schroder of Car-Part.com and “What’s New with Hollander/Tips and Tricks with Powerlink” presented by Michael Angell and Laurie Woods of Hollander. For more information on OARA and recycler-led initiatives such as Green Parts, please visit oara.com. CRM
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May 2011 collision Repair 53
recycling news
lecavalier wins zenith award Lecavalier Auto Parts has earned a Zénith Award for Strategic Management or Human Resources from the Chambers of Commerce and Industry in St-Jérome, Quebec. This award is given to recognize strategies displayed to meet challenges with recruitment and retention of human resources, and is given to a company who bet on the develFrom left: Sébastien Jean, Président Immovex Rive-Nord; Éric St-Pierre, opment of the workforce Human Resources Director for Lecavalier Auto Parts; Nathalie Chasles, President’s Assistant, Lecavalier Auto Parts, and François Lajeunesse, and the quality of the reBusiness Development Manager for Lecavalier Auto Parts. lations as a innovative strategy of growth. our devoted employees, our partners and “This distinction is the result of incredsuppliers and also our faithful customers ible teamwork orchestrated by a creative who believe in us and allow us to surpass and devoted Human Resources Manager, ourselves every day.” Éric St-Pierre,” said Veronique Patry of For more information on Lecavalier Auto Lecavalier Auto Parts. “Lecavalier would Parts, please visit lecavalier.com. also like to take this opportunity to thanks
oara exceeds $1 million in donations Parkway Auto Recyclers and the Ontario Automotie Recyclers Association (OARA) have recently made a donation to the Grand River Hospital Foundation, with funds earmarked for the Cancer Centre. This will help OARA surpass $1,000,000 in donations the past 18 months. At a time when charitable organizations are having a difficult time fundraising, the members of OARA have dug deep to help dozens of worthy causes across Ontario. Among the recipients have been the Halton Health and Stroke Foundation, which received a $10,000 donation, ThinkFirst, a national non-profit organization dedicated to the prevention of brain and spinal cord injuries, which received a donation of $25,000 and the Niagara Health System, which received a donation of $50,000.
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54 collision Repair collisionrepairmag.com
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new products
Sata
SataJet 4000B
Sata has announced the launch the SATAjet 4000 B, replacing the successful SATAjet 3000 B. According to Sata, the new, curved gun handle of the SATAjet 4000 B has been designed to fit the hand like a glove. The low centre of gravity improves the balance of the gun, thus minimising the strain on the wrist. The weight of the SATAjet 4000 B has been reduced by 15 percent compared to its predecessor. With integrated digital pressure gauge and RPS disposable cup, the company says it’s the lightest gun of its class. The control elements also come in a new design. Due to their improved profile, they can be exactly adjusted even when wearing gloves. The round/flat spray control has been completely redesigned as well: with one quarter turn only required from open to closed, the spray fan can now be precisely tuned with linear effect to the shape of object to be painted. At the time of its market launch, the SATAjet 4000 B will be available with the following nozzle set-ups: The RP versions with the sizes 1.2 / 1.2 W / 1.3 and 1.4 and the HVLP versions with the sizes WSB / 1.3 / 1.3 C / 1.4 and 1.5. The SATAjet 4000 B is also equipped with a trigger cover
element to protect the paint needle from overspray, thus increasing the lifetime of the paint needle packing. Furthermore, selftensioning paint needle and air piston packings minimise timeconsuming maintenance repairs. The proven cup connection (Quick Cup Connector) with bayonet for a quick and clean cup change has been adopted from its predecessor to ensure best conditions for the use of the RPS disposable cup system. To save time during disassembly and cleaning, the air cap thread has been further shortened. The air cap consists of sturdy chrome-plated brass, while fluid tip and paint needle are made of stainless steel. In combination with the corrosion-resistant chrome surface of the drop-forged gun body, the spray gun is extremely robust and waterborne proof.
DV Systems
ETC-SV EcoTec
DV Systems has introduced an oil-free solution for compressed air in waterborne systems. According to the company, ETC-SV EcoTec is a revolutionary new converter package which uses innovative catalytic technology to deliver clean air simply, efficiently and economically. ETC-SV technology uses catalytic material heated to +200°C to chemically convert hydrocarbons (oil and silicone aerosols) into harmless water and carbon dioxide as the air passes through the system, capturing all other unwanted molecules in the catalyst. ETC-SV EcoTec can be used downstream of oil-injected or oil-free compressors, and it’s independent of the ambient air quality. Unlike conventional filter systems such as active charcoal filters, ETC delivers consistently ISO class 0 air quality, currently used by high end car manufacturers in painting facilities. ETC eliminates the need for conventional filter technology and oil separation systems (condensate).
For Spraybake OEM parts service and technical support,
Call 1-866-325-2886 56 collision Repair collisionrepairmag.com
new products
3M
RBL Products
According to 3M, paint professionals looking for a new edge for improved efficiency and great results need look no further than the masking materials they are using. The company says its new 3M Soft Edge Foam Masking Tape PLUS provides innovation to a 20-year-old product that 3M created. It provides a foam tubular design that allows painters to easily mask wide and narrow jambs in one simple step. “With the 3M Soft Edge Foam Masking Tape, paint professionals can cut their time in half and dramatically improve the quality of their results,” said Ted Guck, marketing manager for 3M Automotive Aftermarket. “You can create a tight seal and a smooth tapeline around connecting areas without wasting time on hiding it or resanding it after painting.” The tubular design of the 3M Soft Edge Foam Masking Tape conforms to the desired height of the painting surface and seals the opening. The off-set adhesive keeps paint away from the paint edge. The new 3M Soft Edge Foam Masking Tape is available nationwide through 3M distributors.
Canadian Auto Body Sales & Marketing has announced that it is now carrying a slip-on/disposable Air Hose Protective Sleeve from RBL Products. The product fits all 5/16” I.D. & 3/8” I.D. air hoses. Simply inserting the hose into the Protective Sleeve keeps the air hose clean and aids in maintaining a clean spray booth. The narrow diameter of the Protective Sleeve fits closely to the circumference of the air hose for safe, easy maneuverability of the spray gun line. It also eliminates wiping off dust, dirt, smeared paint materials, fillers, putties and grease between paint jobs. Paint overspray sticks to the Protective Sleeve without flaking off. The product is completely disposable. When it gets dirty, it can simply be removed from the hose and thrown away. For more information, please contact Michael McLean at 705-790-3969 or via email to m.r.mclean@sympatico.ca.
New soft edge tape
Air hose protectors
Meguiar’s
Dual Action Microfiber Correction System
Meguiar’s has announced its new Dual Action Microfiber Correction System for paint defect removal and surface finishing. According to Meguiar’s, the Dual Action Microfiber Correction System is a unique purpose engineered system of new technology, microfiber discs and liquids. The system features two specially formulated liquids; Meguiar’s Dual Action Microfiber Correction Compound (D300) utilizes super-micro abrasive technology to remove scratches, acid rain, swirls/holograms and other light to moderate defects on factory paint. After applying Meguiar’s Dual Action Correction Compound, Meguiar’s Dual Action Finishing Wax (D301) utilizes mild cleaners, polymers, silicones and carnauba to refine the paint surface, providing durable high gloss protection. Both liquids are specifically designed for use with Meguiar’s unique Dual Action Microfiber Cutting and Finishing Discs providing no sling, low dusting performance with one-pass wipe off. The company says that optimal performance can be realized with Meguiar’s Dual Action Polisher-G110V2. Three disc sizes will be offered allowing for versatile tool application; 3 inch, 5 inch, and 6 inch.
Start your day the Cardinal Way! ...because your business is our business Call 1-800-387-3199 www.cardinalcouriers.com
On-time, pre 8 AM delivery service to meet the needs of customers with time-sensitive goods and parts is why Cardinal Couriers is your preferred choice in Ontario and Quebec. Our delivery is facilitated through the use of secure vaults, which are placed just outside your place of business. This allows our professional drivers to handle pick ups and deliveries unattended. We can also partner with you using key access to a secure area in your business, when shipping volumes exceed vault capacity. Consistency, security and reliability is our commitment to you. Pre 8 am delivery means you can get down to business right away. So start your day, the Cardinal Way.
May 2011 collision Repair 57
last word
Centrevision Taking, lifting, borrowing and adapting a process. By Mike Davey
I
heard a term during a phone conversation a few weeks ago that I’d like to share with you. It’s “process centred vision” and he used it to describe the way he thinks about managing workflow. Every few years it seems there’s a new management trend such as theory of constraints, six sigma or lean manufacturing. You can apply any or all of them to any business in the world, but the invisible fine print always reads “results may vary.” Having a process centred vision comes down to looking forward, examining actions and consequences and identifying barriers before they create havoc. This is
nothing to offer. They clearly do, a fact demonstrated by the ever growing number of collision repair facilities putting them into practice successfully. In fact, I would argue that every system of process, workflow and management has something to offer, even going way to shipbuilding systems of the ancient Greeks. But one of the most important keys to using these systems is to make sure that the system being used is adaptable to the realities of the business in question. Reducing variables is a goal common to most of those systems. The idea is that if you get rid of all the variables, then surely a won-
Reducing variables is a goal common to most of those systems. the soul of pretty much every management theory I’ve ever heard of. Taking the process centred vision as a starting point allows you to take what works and leave behind what doesn’t. Classic lean manufacturing, for example, is all about reducing waste. It doesn’t acknowledge the concept of strategic waste. For example, if the objective is to reduce wasted paint, then one solution might be to mix 10 half-litres and make sure it all gets used. It sounds good at first, but it doesn’t take into account the time it takes to mix 10 half-litres as opposed to five full litres. Pure lean processes are great from a manufacturing point of view. Manufacturing benefits greatly from relentless waste reduction and standardization of processes. Those are great goals for any business, but they won’t benefit every business equally. It’s important to remember that lean manufacturing was developed by and for a business with very high volumes and very low variability. Collision repair, on the other hand, is a business of relatively low volumes and very high variability. I’m not saying that lean principles have
derland of increased production is just around the corner. Maybe so, but it’s literally impossible to reduce the variables to zero. That’s all the more reason to reduce the variables under your control, so you can concentrate more effort of dealing with the ones you can’t. Identifying which one is which has to be a top priority. Implementing a new process to manage something that is literally unmanageable is simply a waste of time. There are lots of things in the shop that absolutely can be standardized, such as disassembly and parts procurement. Some things, alas, cannot. Figuring out which ones are which in your shop will certainly save pain later on. Take whatever you think will be useful from every system you can find. It’s a buffet, not a fixed menu. Just because the party at the other table is having salad doesn’t mean you shouldn’t have steak. CRM
58 collision Repair collisionrepairmag.com
Mike Davey is the editor of Collision Repair magazine. He can be reached at 519582-2960 or via email at editor@collisionrepairmag.com.
SPEED
Perfect Fit For Light Hits! Today, more than 80% of accidents occur at such low speeds that they do not cause any structural damage to the vehicles involved. Body shops benefit considerably by focusing their resources on repairing this kind of cosmetic damage quickly and cost-effectively. • SPEED can be raised and lowered to the most comfortable working position for every operation. Accessibility is perfect around the entire vehicle. • SPEED is so low that you can drive/roll the car over the lifting platform — no ramps or additional equipment necessary. • Save time and effort — avoid moving the car back and forth between different workstations for steps such as disassembly, alignment, welding, sanding and filling. • The SPEED Lifting Platform is available with a snap-in drawaligner (pulling tower) for use in one end (SPEED) or in both ends (SPEED Plus).
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Go Smart, Go Profitable, Go PCE. When Brad Zara decided his shop, Zara’s Collision Center, needed an effective approach to building a business model that was more sustainable; he had options, but only one good choice. He chose the Process Centered Environment (PCE) approach from AkzoNobel. PCE is the only process centric solution that focuses on the needs and unique issues found in the collision repair industry. Each practice… each procedure… is designed to reduce waste, enable efficiency and generate results that provide sustainable and profitable business. So make the next PCE success story your own. Visit us on the web at www.paintitwithwater.com.
CREATING TOGETHER