Collision Repair/13#2/April 2014 by Media Matters

SPECIAL FEATURE: WELDING, NEW MATERIALS AND THE TRAINING GAP

CUSTOMER RIGHTS

Help your clients know their options.

STATE OF THE INDUSTRY

Canada’s collision repair business compared.

HIGH

INSIDE BASIC ESTIMATING

How to get what you’re owed on every single estimate.

STYLE Joe Visconti and Auto Bugatti built a reputation on excellence in service. PLUS

CRM SIVE: EXCLU TIVE U C E X E VISION

Volume 13, Number 2

Christian Charest of Desjardins on the State Farm acquisition, the 2015 Ford F-150, handing over the gavel at CCIF and much, much more! l

April 2014

$4.95

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CONTENTS

On The cover 27 Attention to Detail Auto Bugatti keeps a top-notch reputation through investment and constant training.

Volume 13 Issue 2, April 2014

The popular Basic Estimating course covers repair procedures, how coatings look under different lights and much more.

features 16 Surveys and Polls Our readers on concerns for 2014, job descriptions and digital security. 30 executive vision Christian Charest discusses insurance consolidation and collision avoidance. 33 Unwavering Loyalty The Superior Paint & Auto Body family stood strong during Calgary’s 2013 floods. 36 State of the Industry Vincent Romans discusses collision industry consolidation in the Canadian market. 39 Report on Training Canada’s most prolific trainer, the basics of estimating and facts and figures. 45 WElding Spotlight An analysis of current skills, new equipment and the state-of-the-art.

NEWS 06 COLLISION REPAIR 55 Towing & Recovery 57 RECYCLING

Saeed Ahmed may be Canada’s most prolific trainer.

How to make sure your facility bridges the “welding gap.“

SPECIAL FEATURE: WELDING, NEW MATERIALS AND THE TRAINING GAP

On the Cover: Joe Visconti of Auto Bugatti. Photography by Corey Narsted.

CUSTOMER RIGHTS

Help your clients know their options.

STATE OF THE INDUSTRY

Canada’s collision repair business compared.

HIGH

INSIDE BASIC ESTIMATING

How to get what you’re owed on every single estimate.

STYLE Joe Visconti and Auto Bugatti built a reputation on excellence in service. PLUS

Christian Charest of Desjardins on the State Farm acquisition, the 2015 Ford F-150, handing over the gavel at CCIF and much, much more! Volume 13, Number 2

April 2014

$4.95

Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632

YOUR ONLINE SOURCE

Canada’s collision repair information resource. New articles and top news stories daily. Visit www.collisionrepairmag.com.

departments 04 Publisher’s page by Darryl Simmons Winter wonderland. 18 Point Blank by Sam Piercey Real partners. 20 Prairie view by Tom Bissonnette Taking the floor. 22 Who’s driving? by Jay Perry Repair mapping. 24 Sales & marketing by Rob Dumais Know your rights.

86 John Street, Thornhill, ON L3T 1Y2

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64 Recycling by David Gold Trial by fire.

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

66 Last word by Mike Davey Class actions.

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

april 2014 collision Repair 03

publisher’s page

Winterwonder The “worst” winter in years? Not for collision. By Darryl Simmons

e’re finishing up what was without a doubt the worst-weather winter of recent memor y in almost all areas of the country. It’s taxing, but in our industry we have to look through a different set of lenses. This is without a doubt one of the best winters ever. Let it snow, let it snow, let it snow. Not one shop I’ve spoken with since Christmas is complaining, at least not about volume ...and that’s a positive move. If your shop is not making money this season, it’s time to give some serious thought to your exit strategy before it’s too late altogether. Yes, these are some good times for the collision repair industry, but don’t put

waiting lists of clients and insurers cozying up to get their clients to the top of the line. Another thing you’re going to see playing out a lot more aggressively in the next little while is the OEM entry into the collision repair market. The F-150 aluminum truck is a harbinger of things to come. Sure, the price of aluminum rooms may drop, but that’s just the price to ante in. There are welders, and rivet guns and other things to add. And don’t forget the space that is needed. Just as important, don’t forget the training. Since the F-150 is one of the top selling vehicles in the country, you can bet you’ll see a lot more aluminum in entry level cars coming down the pike soon.

Hopefully You’ve got the dollars coming in to reinvest. a down payment on that new Cadillac and Florida condo just yet. For all the windfall on this side of the insurer/repair equation there’s going to be some backlash from insurers. They are taking what might be the biggest hit they’ve ever been handed. I have no doubt that auto claims are up, but extreme weather also causes a lot of damage to other forms of property, and a lot of that property is insured. From the massive ice storm that paralyzed Toronto, to all sorts of damage on the east coast and prairies, they’ll want to make up that money. Don’t be surprised if they try to tighten up in the future. In the meantime, they want their customers’ vehicles fixed ASAP, so they’re going to be on their very best behaviour, I’m sure. Most areas of the country are seeing volumes like those enjoyed by Alberta and Saskatchewan for the last few years:

Add to this the OEM certified repair programs and my bet is you as a shop owner or manager are about to be courted like never before. Insurers and OEM will both be seeking your hand as consumers will, in my opinion, throw their weight and their wallets behind the OEM certified repair programs. Before you complain about the cold and start longing for hot sun and poolside drinks, take the time to thank the weather gods for this opportunity. You’ve hopefully got the dollars coming in to reinvest. Whatever you do, don’t miss the chance to get some training, get some new equipment and strengthen your shop’s brand in the market. CRM

04 collision Repair collisionrepairmag.com

PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com general manager Ryan Potts ryan@mediamatters.ca EDITOR MIKE DAVEY editor@collisionrepairmag.com ART DIRECTOR DANIELA LUBERTO daniela@collisionrepairmag.com Assistant eDITOR ANDREW ARDIZZI andrew@mediamatters.ca COLUMNISTS TOM BISSONNETTE, Dick cross, Rob dumais, DAVID GOLD, JAY PERRY, SAM PIERCEY, Vincent Romans VP INDUSTRY RELATIONS GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com Marketing Assistant WILL JACQUES will@mediamatters.ca INTERNS palak palak SUBSCRIPTION One-year $29.95 / Two-year $55.95 Collision Repair™ magazine is published bi-monthly, and is dedicated to serving the business interests of the collision repair industry. It is published by Media Matters Inc. Material in Collision Repair™ magazine may not be reproduced in any form with out written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 86 John Street Thornhill, ON L3T 1Y2

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

Collision Repair magazine is published by Media Matters Inc., publishers of:

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People on the move Michael Macaluso of CARSTAR will present at the 2014 International Bodyshop Industry Symposium in Barcelona, Spain. Collision Repair magazine is Canada’s official Publisher Partner for IBIS. Macaluso, Chief Operating Officer at CARSTAR Automotive Canada, will team up with Stephan Salzer, Master Coachbuilder from Team Salzer, to discuss the challenges of passing family businesses from one generation to the next. IBIS 2014 takes place at the specMichael Macaluso. tacular Hotel Arts Barcelona, Spain on May 19 to 21, 2014. For more information on IBIS 2014 or to make any bookings contact Nicola Keady at nicola@ibisworldwide.com. AkzoNobel’s Doug Holmberg will take the lead as Director of Vehicle Refinishes North America. A statement from Ak zoNobel says the appointment is part of a global initiative designed to position the company’s auto and aerospace coatings business for expanded growth and market leading performance within the aftermarket business of the passenger and commercial vehicle sectors worldwide. In this new role, Holmberg will be responsible for leading the Canadian and U.S. business responsible for the Sikkens, Lesonal, Wanda, Sikkens Autocoat BTLV and U-Tech brands in the automotive, truck and fleet segments. He is also responsible for ensuring the alignment of AkzoNobel’s strategic goals overall within its North America Vehicle Doug Refinishes business. Holmberg. An AkzoNobel veteran, Holmberg has held a number of key leadership roles, including his most recent position as Director of Sales, Vehicle Refinishes, A&AC North America. Prior to this he lived in the U.K., serving as International Paint’s General Manager of Yacht Coatings EMEA; a division of AkzoNobel’s Marine and Protective Coatings business. He also held positions as Yacht Coatings’ Global Marketing Manager and North America Marketing Manager.

For more information, please visit akzonobel.com/aac. Mirka Abrasives Canada is pleased to announce the addition of Matti Ollila to its team. Ollila has been named to the position of Sales and Matti Marketing Assistant. Ollila. In this position, he will be responsible for supporting the sales team and the marketing function of Mirka Abrasives Canada. Ollila can be reached at 514-618-1770. For more information on Mirka Abrasives Canada, please visit mirka.com. Quest Automotive Products (QAP) has announced that Aaron Mastro has been promoted to Northeastern Territory Regional Sales Manager for Matrix System Automotive Finishes. Mastro’s responsibilities will include Canada and the Great Lakes and Northeast re g i o n s o f t h e U . S . Mastro will report to Mark Flint, VP of Sales and Marketing Aaron for Matrix System and Mastro. Pro-Spray. Guelph Paint & Bumper has announced the appointment of Dave Armstrong to the position of Account Manager. Armstrong has 40 years of experience working in the collision industry. He is a licensed technician and painter, and has 25 years experience in collision repair facility management. As Account Manager, Armstrong will cover Kitchener-Waterloo, Cambridge, Stratford, Brantford, Burlington and Hamilton. “I’ve known Dave for over 20 years, and we’re very excited to have him on board,” says Wayne Kurtz, President of Guelph Paint & Bumper. “I know he is looking forward to facilitating improvement and profit for our loyal customer base.” For more information on Guelph Paint Dave & Bumper, please visit Armstrong. gbpsupplies.com.

06 collision Repair collisionrepairmag.com

That car is my baby. I want to make sure you’ve got one of your top guys working on it.

Come into the back and I’ll introduce you.

No way! I don’t want her fixing my car! She’s a (mumble).

I see. Well, in that case, you’re fired.

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Ed Coates, founder of Lordco Auto Parts, passes away It is with deep regret that we must announce the passing of Ed Coates. Coates was the founder and owner of Lordco Auto Parts, with over 100 locations throughout British Columbia. Coates passed away unexpectedly at the age of 65. Well known throughout the Ed Coates, with his wife industry, Coates founded the Marlyn and daughter company with his partner Ray Samantha CoatesWeins, when he received Lord in 1974. Coates later bought the AIA Distinguished out his partner in the early 1980s. Service Award in 2011. The company currently employs approximately 1,500 people. Coates was known for his positive attitude, and it permeated throughout his organization. A long list of incentives was part of his philosophy to empower staff to make decisions. Always adaptive and forward-thinking, Coates ensured that Lordco was able to adapt quickly to challenges and opportunities. He had four children working in the business, and extended family that reaches to every corner of the company. But he also considered his family to include Lordco’s many long-time employees. He was the recipient of the prestigious AIA Distinguished Service Award in 2011. Brad Morris, AIA Past Chairman, presented the

award and noted Coates’ leadership and innovative business thinking. “Ed Coates has been a supporter of many industry and community projects over the years,” says Morris. “His personal support for a number of causes, both in the industry and in his community, reflects the corporate values that Lordco has become well known for.” Coates is survived by his mother Shirley; wife Marlyn, daughter Samantha, daughter Sarah (Garret), son Ian (Erin), daughter Candace (Brian); grandkids Natalie, Brooklyn, Dylan, Sydney, Josh, Harper and Delaney; Brother Dave (Carol), Sister Chick (John); sister Evelyn (Don); brother Doug (Lornie), several nieces, nephews, great-nieces and great nephews. A public celebration of his life was announced following his mid-February passing. Having touched many people in his life, his friends and family organized a public celebration in his honour on Saturday, March 8, 2014 at Pan Pacific Vancouver Hotel, located at 999 Canada Place. Coates’ family has additionally announced they will be establishing a legacy fund in his memory with specific details to be determined.

Advance Auto Parts closes deal to become North America’s largest aftermarket parts provider CarProof vehicle history reports Advance Auto Parts has closed a deal to buy General Parts International, making the company the single largest provider of aftermarket auto parts in North America. Advance Auto Parts operates over 4,000 stores in 39 U.S. states, Puerto Rico and the Virgin Islands. General Parts International distributes and supplies aftermarket parts under the Carquest brand, and original equipment parts under the Worldpac brand. This transaction creates a company with annual sales of over $9.3 billion, a staff of over 70,000 and approximately 5,300 company operated stores.

08 collision Repair collisionrepairmag.com

As a result of the closing of this transaction, Advance will add to its operations 38 General Parts distribution centres, 1,248 company operated Carquest locations across Canada and the U.S., and will service approximately 1,400 independently owned Carquest locations, located primarily in Canada and the United States. Advance will also add Worldpac, an importer and distributor of original equipment and aftermarket replacement automotive parts to import specialists in North America and Puerto Rico operating 105 facilities across the U.S. and Canada, to its operations.

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CCIF Toronto digs into profitability, tech and HR The collision industry performed relatively well in 2013, according to statistics released at the Toronto meeting of the Canadian Collision Industry Forum (CCIF). CCIF took place the Airport Marriott in Toronto, Ont. This meeting marks the first event under the direct administration of the Automotive Industries Association of Canada (AIA) and the first release of data from the initial Business Conditions Survey organized by AIA. Leanne Jefferies of AIA Canada opened the meeting and discussed the format for the day before giving the floor to Larry Jefferies of CARSTAR Automotive Canada, who began a new term as chairman at CCIF Toronto. Larry took the opportunity to thank Tom Bissonnette of Parr Auto Body for serving as chairman of CCIF for the last few years. Jefferies noted that Bissonnette’s term as chairman was marked by a desire to go beyond the status quo. “He’s stirred the pot a few times,” says Larry, to the crowd’s obvious approval. “But people came back.” Larry has been involved with CCIF since its inception. An early and common criticism of CCIF was that it was long on talk and short on action. He acknowledged this criticism, and noted that if it had not been dealt with, there was a very real possibility that CCIF would have disappeared. “There’s no possibility of that happening now,” says Larry. “We have a clear mission and a mandate.” Larry outlined that mission as focusing on the three things that matter most to repairers, as shown by surveys of CCIF attendees: profitability, vehicle technology, repair complexity and human resources. One of the primary ways in which CCIF has moved towards more of an action-based model is with the recent introduction of the Business Conditions Survey. This marks the first efforts to survey a broad cross-section of the industry on an ongoing basis. As Larry pointed out, up until this time, only anecdotal evidence had been available. The initial survey results as presented during CCIF are taken from data uploaded by 712 collision repair facilities. The data was managed, aggregated and analyzed by Desrosiers Automotive Consultants. Leanne encouraged those in attendance to make sure they have entered the data from their facilities. There is a definite pay off involved for any shop that participates. “This is the only time that, if you’re not putting data in, that you’ll see the results,” says Leanne. After a short break, attendees were treated to a short presentation

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CCIF Toronto showed an impressive turnout for the first meeting of the year.

Handing over the gavel. Larry Jefferies of CARSTAR Automotive Canada (left) congratulates Tom Bissonnette of Parr Auto Body on his successful chairmanship of CCIF.

by Marc Honorat, Director of Haiti Arise, a non-profit organization that has established a technical college in Haiti as part of its efforts to provide children with greater opportunity. Honorat’s personal story is heart-rending. His parents couldn’t care for him, and had to give him away when he was just five years old. “For the next seven years, I was a slave,” says Honorat, who makes it clear that he is not speaking figuratively. His older brother located Honorat when he was 12 and helped him get out of that situation. Sponsors from Canada helped Honorat go to school, including sending him to university in Jamaica. He later traveled to Canada to complete his studies. “Haiti is not that far from us here,” says Honorat. “It’s closer to go to Haiti than to go to Calgary from Toronto. I’m here to invite you to come partner with us and help us make change in Haiti.” Andrew King of Desrosiers Automotive Consultants was next to take the podium. King provided some background on Desrosiers Automotive Consultants, and why a broad study of the automotive world leads to more solid predictions about particular aspects. “If you want to find out what the automotive aftermarket will be like in five or 10 years, you have to look at new car sales now,” says King, giving just one example of how Desrosiers’ sole focus on automotive data can help them to find connections. King presented some conclusions from the initial Business Conditions Survey, noting that there has been strong performance from the industry as a whole in 2013. He also discussed

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the different results seen from different regions of the country, as well as referring to Desrosiers’ data on new and used car sales. New car sales were very strong in Canada. In fact, 2013 was a record breaking year, with more new vehicles being sold than in 2002, the previous record holder. Canada was alone among the developed nations in setting records for new vehicle sales this year. Looking deeper into the numbers, the Ford F-150 managed to sell in numbers almost double that of the most popular passenger car, the Honda Civic. In addition, the luxury segment set a record in 2013. “This is going to have a big impact on your business, as you’re going to be repairing a lot more high-end vehicles,” says King. “Obviously, there’s going to be a big impact on insurance as well.” Doug Kirk of AkzoNobel gave the last presentation before the lunch break. Kirk works and lives in the U.K., and gave several useful comparisons between the industry in Canada and in the U.K. The industry in the U.K. has seen plunging shop numbers, going from 35,000 shops to around 3,000 today. This has led to an industry where innovation has become almost commonplace. “We’ve had to challenge all of the conventions,” says Kirk, referencing trends such as customer pay, mobile repair, small repairs and attempts to bring much of the previously subcontracted work into the facilities. After a break for lunch, attendees returned for a panel discussion moderated by Larry Jefferies, drawing on topics presented during Kirk’s presentation. Eric Boutin, Director of Parts & Service Business Development,

Group After Sales at Volkswagen Group Canada took the stage to discuss new materials developed by the O E M , a n d h o w t h e y a re changing the repair process. Boutin demonstrated the importance of professional repairs, the importance of ensuring that staff are properly trained to follow OEM standards, using the right equipment, ultimately leading CCIF brings together disparate to increased safety for Canamembers from associated industries, including parts suppliers such as Roger dian vehicle owners. Schroder of Car-Part.com and David Leanne Jefferies followed, Gold of Standard Auto Wreckers. presenting an update on the CCIF Skills Program and what’s ahead for 2014. Following Jefferies, Margaret Knell, chair of the Women’s Industry Network (WIN) updated attendees on WIN, its importance to both women in collision repair and the industry in general, and how interested parties can get involved. CCIF Toronto concluded with updates from Andrew Shepherd, Executive Director of I-CAR Canada, on the state of I-CAR training in 2013, and from Dan Risley, ASA Executive Director, on U.S. market conditions and what to expect at NACE 2014. For more information on CCIF, please visit ccif.ca.

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Assured Automotive heats up the night at annual Winter Blast Assured Automotive held its annual Winter Blast Dinner & Dance recently at the Mississauga Convention Centre. Over 500 staff and family members of Assured Automotive’s 40plus locations gathered at the annual event to honour the individuals and stores who went above and beyond in the last year. Assured Automotive would like to congratulate the following members of the organization who received awards for their work in 2013:

Des D’Silva, Chairman and CEO of Assured Automotive, updates staff, partners and family members on Assured Automotive’s accomplishments in 2013.

Decade of Excellence Des Browne Bob Giard Angie Yousif John Kearns Kevin Arthur Ian Watson Brian Clark Brian Freethy Danny Faria John Stranaghan Duane Whitaker Donna Hubbert

Rocco Aurelio of Assured Automotive cuts a rug with his wife Connie. The annual gala event helps Assured staff socialize and reconnect to the organization’s core values.

Operational Excellence Assured Markham

Store of the Year Assured Burlington

Sales Excellence Assured Leaside

Attilio Giancola Lifetime Achievement Sandra Bigras Claude Delorme

CSI Excellence Assured Mississauga City Centre

For more information on Assured Automotive, please visit assuredauto.ca.

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12 collision Repair collisionrepairmag.com

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Audavision Toronto connects the dots The sectors of the auto claims economy are more interconnected than ever before, and the trend is moving toward even greater connections. Highlighting these growing connections was a major focus at AudaVision Toronto 2014, hosted at the Airport Marriot Toronto. Anthony Giagnacovo, Managing Director of Audatex Canada, helped highlight these growing connections during his opening remarks. “Our world keeps changing and the connections keep magnifying,” says Giagnacovo. “There are many more connection lines between both individuals and organizations. That’s our expertise, as we’re delivering this new platform, to make it better, faster and easier for businesses to communicate with each other and their customers.” Giagnacovo was followed by George Cooke, the keynote speaker for AudaVision Toronto 2014. Cooke is the President of Martello Associates Consulting and the former CEO of Dominion of Canada Insurance. Cooke offered insight into the future by focusing on autonomous vehicles, also sometimes called driverless cars.

“We’ve all heard about the driverless car, but I was surprised to hear that there are already three states that either have or soon will have legislation to allow these cars on the road,” says Cooke. “The fact that this is happening will be a catalyst for an enormous amount of change in our industry.” Cooke was followed by Rick Tuuri, Vice President of Industry Relations for Audatex, who spoke on the topic of Trusted Date and the Future of Technology. A sheaf of short presentations on recent innovations in claims services followed. Sessions continued after a break for lunch with “Customer Experience in the Age of the Digital Consumer,” by Glenn Gibson, President - Business Operations, Hamilton Tiger-Cats and “Improving Insurance Telematics,” by Louis Dore, Director Strategic Partners, Baseline Telematics. An in-depth examination of AudaNet: The Next-Generation Claims Platform followed, facilitated by Anthony Giagnacovo, and featuring commentary from Colin Moore, Manager of Software Engineering and Massimo Pecchia, Product Manager. Com-

monwell Mutual, formerly Farmer’s Mutual, had been engaged in testing the new platform and provided a testimonial on the value they have seen. The last session of the day focused on OnStar and 4G LTE technology, delivered by Gary Gumushian, VP-OEM Global Relations and Mark DuBois, OnStar Manager of New Business Development. Giagnacovo returned to the podium to deliver the closing remarks for the day. “Don’t strive to hit achievable objectives,” says Giagnocovo. “Strive to achieve those objectives that are so far out there you will always hit above the mark. Aim high.”

George Cooke, former CEO of Dominion of Canada, provided the keynote address at Audavision Toronto 2014.

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april 2014 collision Repair 13

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Emeryville Collision~CSN and HailCraft donate $25,000 By Palak Palak

Hailstorms can damage entire communities, but at the same time they can bring communities together. This was demonstrated recently by Emeryville Collision~CSN and HailCraft when the companies made a joint donation of $25,000 to the Lakeshore Multi Recreational Centre. A summer hailstorm rocked the town of Lakeshore, Ont., damaging many vehicles belonging to long-time customers of Emeryville Collision~CSN. “There were so many customers we had to process that it was overwhelming at first,” says Robert Labonte, President of Emeryville Collision~CSN. However, Labonte says throughput solutions and lean processes, not

to mention a partnership with PDR repairer Hailcraft, allowed the facility to repair the vehicles in a timely and efficient manner. “The donation was a means of giving back after the loss the community had incurred due to the July hailstorm,” says Labonte. Funds were raised through donating a certain percentage of Emeryville Collision~CSN’s income from hail repairs. HailCraft, owned by Ryan Hart and Barry Bodnar, was also involved in raising the money. “The success of two companies that have the same training, goals and quality standards

Robert Labonte of Emeryville Collision~CSN, with his wife Christine and their children Emily, Brayden and Carter, hands over the cheque to Mayor Tom Bain and the other members of city council.

was a major contributing factor in the volume that was done and the donation to the Town of Lakeshore,” says Labonte. The funds will be utilized toward building up the facilities at the Lakeshore Multi Recreational Centre.

Celette opens Canadian facility Celette will open a new facility in Canada in partnership with Titanium Tools and Equipment, the exclusive Canadian distributor. The new facility is located at 147 Citation Dr. Units 28 and 29 in Vaughan, Ont. A statement from the company says the aim of the new facility is to build closer relations to Canadian business partners and customers, establishing a national Technical and Training Centre with locally-run training classes, a local show-

“A new generation in collision repair performance.”

room and sales inventory, house an internally-managed National Canadian Fixture Rental Bank and update the local Rental Bank according to the local needs. Farouk Hassen is the Rental Bank Coordinator. He can be reached at 905-760–8665 or via email to canadianrental@celettena.com. For bilingual technical support, please contact Charles Aoun at 514-250-8732.

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14 collision Repair collisionrepairmag.com

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CCIF to host special event at NACE The Canadian Collision Industry Forum (CCIF) has announced it will host a special event during NACE/CARS 2014 in Detroit, Mich. The CCIF meeting will feature expert speakers and panel discussions followed by an exclusive cocktail reception. Attendees will be able to connect with other Canadian industry leaders at the first ever CCIF Special Event at NACE/CARS. “CCIF represents the heart of the Canadian automotive repair market and to have this group host a special meeting during NACE/CARS for their constituents is very exciting,” says Dan Risley, ASA Executive Director. “This decision supports the ongoing plan for international growth of NACE/CARS and fits with the direction of Industry Week.” “We are looking forward to hosting this special meeting during NACE/CARS 2014,” says Leanne Jefferies, CCIF Director, Collision Programs, AIA Canada. “Many of our forum attendees and partners plan to attend NACE, and with the new location so close to Canada, this is a logical step for CCIF.” Vincent Romans, North American collision industry expert, will give an overview of the state of both the Canadian and US Collision Repair and Property and Casualty industries. He will address many of the following topics and will provide a framework for MSOs and collision repairers to consider alternatives:

Leal, Duplantie and Bessette acquire international Fix Auto brand Jean Delisle, founder of the Fix Auto brand, has announced the transfer of Mondofix to Steve Leal, Manon Duplantie and Guy Bessette. Mondofix is the holding company of the Fix Auto international brand. The ownership transfer became official as of March 1, 2014. The three associates will play the same role into the Mondofix organization as they do in Fix Auto Canada. Leal will also continue to operate the Fix Auto Canada daily operations as usual.

Duplantie and Bessette will retain their respective roles of Strategic Advisor to the President and Chairman of the Board. Mondofix has licensed the 333 strategic partners representing the brand. A statement from the company says this acquisition will increase the communication, the speed of execution and brand development between the Fix Auto organizations in different countries. For more information visit fixauto.com.

• The Evolving MSO Marketplace • Industry contraction, consolidation, convergence and constructive transformation • M a r k e t s i z e , M S O l e a d e r s a n d rankings, segments and market comparison • Collision Repair Industry Trends • P & C Insurance Industry Trends • What are the implications and what might the future look like Cost to attend is $85 per person. Registration will be available shortly. For more information, please contact Leanne Jefferies, Director, Collision Programs, AIA Canada at 905-628-2041.

april 2014 collision Repair 15

Facts & Figures

Job Security

Top concerns for 2014, job descriptions and digital security. By Mike Davey

ecruiting and retaining highquality staff remains top of mind for many collision repairers across Canada, according to the results of a recent poll. We asked readers of collisionrepairmag.com to let us know what their biggest concern was for 2014, and “Employee hiring and retention” took the top spot, ranking ahead of new equipment costs, uncertainty in the economy and even revenue and cash flow. Keeping the focus on human resources, another recent poll asked if every position at the facility had a written job description. Judging from the responses to this poll, a large number of repair facilities don’t bother with written job descriptions. This can be tempting, especially when the facility has just a few

employees. They become absolutely essential as the business grows, however,

and the y make hir ing considerably easier. After all, it’s difficult to find just

what you want if you don’t know exactly what that is. Finally, we took a look at digital security. The majority of respondents to our poll indicated that digital security was a concern, and either had a solution in place or were studying solutions. However, the single most popular answer indicated that while they had data, it was not the sort of data anyone would be interested in stealing. If you find yourself in that camp, consider this: the data you have on hand may contain such gems as a customer’s name, home address, contact information and place of business. Add in a few choice nuggets such as their vehicle information, including VIN, and their insurance provider and policy number, and you’ve got a prize that would tempt any identity thief. CRM

What is your biggest concern for 2014?

Does every position at your facility have a written job description?

How concerned are you about digital security?

A large number ... don’t bother with written job descriptions.

11% 34%

11%

15%

18% 46%

55%

0.1352

39%

13%

18% 26%

Employee hiring and retention. Revenue and cash flow. Other. Uncertainty in the economy. New equipment costs. New or upcoming legislation and/or regulations.

16 collision Repair collisionrepairmag.com

No, written job descriptions aren't needed. Everyone knows what they need to do. Some jobs have written descriptions, others don't. Everyone, including me, has a written job description. Everyone but me has a written job description.

Not at all. We have data, of course, but it's not the sort of data people steal. I do have some concerns that our info is vulnerable, and I've been looking into solutions. Very concerned. We have already put in an electronic security solution.

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ow can you tell if a company is really a true partner to your shop? It’s not enough to say it. Words are cheap. Action is what makes the difference. You might be used to me ranting a bit on this page, calling out the bad apples and the bad practices in and around our industry. This time I’m looking at things a little differently, talking about all of the great partners we’ve worked with over the years. Really, that’s most of them. I would have to say that the overwhelming majority of our partners, especially our major partners, have always done what they could to help take Budds’ to the next level.

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Look at your list of partners and ask yourself what they’re doing to help you and your shop. Every partner worth their salt will provide training on their products. Do they step outside that box and deliver

partners are on your team in this game. They don’t hold you back.

One way to tell if a company is really a true partner is to look at whether or not they help raise you and your business to the next level. The best partners are the ones that want you to succeed and go the extra mile to make sure that you get there. They also need to understand where the industry is headed. The best partners have it together when it comes understanding continuous improvement/Six Sigma/Kaizen, any of the continuous ways to improve your business and do it better, faster, cheaper than you did before.

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are. They dig deep to find the best Standard Operating Procedures (SOPs) that will make a change for the better in the daily operations for your business. Keep in mind there is no real textbook for our business, one that guarantees you how to improve or make more money. They’ve got to have people who can do it from solid experience and knowledge of real-life solutions.

Real partners are on your team in this game. They don’t hold you back, they don’t hog the ball and they’ll always do what they can to show you how to win. Major partners that are really there to help can bring in highly trained and skilled professionals to get an overview of your operation and find where the hiccups

18 collision Repair collisionrepairmag.com

training that you and your staff can really use? Think about it. Look to your paint company for an example of a great partner. Do they stop training when you understand your paint? Hell no! They come in and train you on SOPs, lean, all of it. They know that by helping you succeed, they’re helping themselves to succeed. They’re real partners for your shop and a great example of what a partner should be. Great partners make helping you succeed their number one priority. It makes sense for them to do it that way. I challenge you to ask not what you can do with your partners, but what they can do for you! CRM Sam Piercey is the co-owner of Budds' Collision Services in Oakville, Ont. He is a long-time Coyote member and sits on many boards and committees. Sam can be reached at sam@buddscollision.com.

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*Ford Protection Plan (“FPP”) is only available for purchasers of Ford or Motorcraft® replacement parts for non-commercial cars and light trucks. FPP provides coverage (part only, labour and towing excluded) beyond the expiry of the standard Parts & Accessory Warranty. If a FPP-eligible Ford or Motorcraft® part fails due to a defect in material or workmanship, wear out or rust through, it will be replaced at no charge as long as the original purchaser of the part owns the vehicle on which the part was installed. Coverage varies between over-the-counter and dealer-installed parts. See your local Ford Store for complete coverage details and limitations. ©2014 Ford Motor Company of Canada, Limited. All rights reserved.

prairie view

Takingthefloor Owners should pitch in to understand their shop’s realities. By Tom Bissonnette

bout 32 years ago I started working as a parts person in the auto body industry for a large independent shop in Saskatoon. It was tough considering I had no prior shop experience. I was a mechanic by trade, but didn’t know what a belt molding, a reveal molding or a scalp molding was. Estimates were handwritten and the estimator’s writing was terrible! I had maybe two days training and was then told to “figure it out.” Well seeing as how interest rates were hovering around the 20 percent mark and we were expecting our first child I just did whatever it took to learn the job. I came early, stayed late and asked lots of questions. I didn’t wait for someone to tell me how to do something—I just got in there and figured it out. Within three years I was managing one of the largest shops in Saskatoon. It turned out that 14 years later I actually bought that shop—Parr Auto Body—and things have worked out nicely for my

wife and I, and my life is pretty good. I work with some terrific young people that have bought into the business, and I was at a point where I was working on the business instead of in the business. This is a fun place to be because you are always in the creative zone and it is very stimulating. Then things got interesting. My parts manager, a recently married wonderful young lady who said she would never have children, found herself in the motherly way. No problem, we had plenty of time so we hired someone to take her place and set about training this individual. Everything was going along just great until about one month before her due date. For various reasons her replacement was not working out. No problem, we will get someone else—he lasted about two weeks! Now it is Christmas and finding someone is near impossible. No problem, I have done this before, how hard can this parts job be? After the Christmas break I began training for my new parts job—I got all of two

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prairie view

days training before our young parts manager took her maternity leave! Déjà vu! I have been here before! I came to work early, I stayed late and I worked weekends. After about a month I was starting to get a pretty good grasp of how to do this parts thing but, just to make it interesting, we switched to a new shop management system at the beginning of February! I came home from the CCIF meeting in Toronto

As tough and frustrating as these last two months have been I am thankful that I went through it on the front lines. I think that sometimes when owners get into the “working on the business” groove they sometimes lose touch with what their employees go through on a daily basis. This is not an easy business and I think it is important for every shop owner to spend time

It is important for every shop owner to spend time working on the shop floor. with a nasty cold and went straight into on-the-job training for the next four days! Now those of you that have been through stuff like this know that when you change software or hardware there is always a settling in period where whatever can go wrong does go wrong. The first month was hell, not only for me but also for my entire staff. Miraculously no one has quit (yet) and we can see light at the end of the tunnel. I think that very soon we will be a better, more efficient shop than we have ever been.

working on the shop floor so that we can help to make positive changes for our employees. Come back next issue and I will tell you some of the neat things I learned while I worked on the shop floor. CRM Tom Bissonnette is the owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, Sask. He can be reached at tom@parrautobody.com.

april 2014 collision Repair 21

who’s driving?

RepairMapping Accurate processes keep a shop’s flow front and centre.

By Jay Perry

e’ve covered a lot of territory about what must be done to achieve a smooth running store. There are a few more things in the production area I would like to bring up before focusing on the front-end of the house. We are going to cover two of those things here. One of the best techniques to speed things up is when shops utilize mapping. This involves communicating the major ideas of the repair process by writing on the vehicle the thought of, “how the writer THINKS the job will proceed through the shop.” Because no writer is perfect (sorry guys and gals, I know we like to think we are and it should always be our goal, to write the perfect sheet),

because the tech thought there was a door skin coming and the writer thought the panel could be repaired. You know what happened to cycletime in that situation, don’t you? Mapping also provides visual enhancement in photos that often cannot pick up the nuances of chips, scratches, dings, etc. Many times I see people that do the technique are too shy in marking out damage. To do it accurately think of how a repair spreads from feather-edging and that gives you the idea of how you should be marking the size of the damages you are documenting. Now, the second item: disassembly. This is one of the least understood and most critical parts of the pre-repair components to the running of the

The other advantage to mapping is the reduction of mistakes based upon assumptions. writing on the vehicle is a guide. As a guide it may change post-disassembly when the job’s reality is fully determined. If there are changes to how the job will proceed, the mapping itself should change so that it is as accurate as possible. It supports lean-thinking processes in its visual nature. Mapping also answers eventual questions such as peripheral damage and whether to repair or not. It marks unrelated (or prior) damage. So it involves completely examining the balance of the vehicle in addition to the primary damaged area. When this is done and photographed, you now have documentation that can be used to negotiate additional sales or protect the shop. Most importantly, it reduces wasted time by technicians that need this information. The techs need to know if we are going to repair that door-ding in the blend panel or that damage that may or may not be related to the authorized claim. The other advantage to mapping is the reduction of mistakes based upon assumptions. If a panel is clearly marked for “repair” and not “replace” then you will avoid a problem that one shop I know suffered when a vehicle was left sitting for days 22 collision Repair collisionrepairmag.com

shop. Recently I had to have a stern review with a very capable technician about how a proper disassembly contributes to the smoothness of the shop’s running. He got lazy, making excuses for not taking everything off the damaged vehicle so that it could be examined properly for replacement parts. Because he did not completely take it apart, a critical and hard-to-get part was not on the original parts order. This delayed the repair by three to four days, cost more in rental car fees, took up valuable real estate and increased handling time (money). To get this operation done at the critical level it needs to achieve peak performance. Use this ruleof-thumb: the next thing that will be done to this vehicle is something will be installed or repaired. In other words, you will be rebuilding, not taking more off the vehicle. It’s the way you stay the one who’s driving. CRM Jay Perry is the founder and owner of Automotive Business Consultants (ABC), a performance coaching company specializing in the automotive service industry. He can be reached via e-mail at jayperry@a-b-c-inc.com.

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KnowYourrights Shops and insurance companies must put customers first.

By Rob Dumais

eing in the collision repair industry for 26 years I have witnessed insurance company steering tactics many times, mostly as a shop owner and a few times as an insured vehicle owner. It has had a huge impact on our industry and can make or break a shop’s abiliy to stay healthily in business Being a small collision repair shop, we have built our local reputation as a shop that prides itself on good work and has a strong following of referralbased customers. We always strive for great customer service, and safe, high quality repairs done in a reasonable timeframe. However, not enough insurance companies recognize this reality.

with other likeminded professionals I found a document on one of the collision industry websites. I have been stapling them to every estimate ever since and have had very positive feedback from my customers. That’s right, my customers. They are your customer, not the insurance company’s. The insurance company is not your customer. They are the third party that the customer has paid to reimburse them in the event of a loss. The “Know Your Rights” sheet has opened the eyes of many insured people that previously had no idea what they are entitled to legally! Many customers have stated that they felt they had been lied to after reading the “Know Your Rights” sheet.

Resorting to intimidation, slander and outright lying does no one in this industry any good. When an insured calls in to make a claim, an insurance company representative may use steer tactics to direct the insured to the shop of the insurance company’s choice, not the shop of the insured’s choice. These tactics make most insured people feel scared or threatened in some capacity. This practice is money-based, not on what’s best for the vehicle owner. These deals are made between the shop and the insurance company; it is a business agreement between them. With these agreements, shop owners agree to certain concessions and in turn insurance companies direct its insured vehicle owners there. Some are very aggressive in steering customers to the shop of their choice based on a computer generated list, and they pass judgment on those not on the agreement list. These judgments have no merit or truth in many cases, and often insurance agents have never set foot in a shop unless selling in person or if they need repairs done. Growing tired of judgments being placed on my shop, I decided to do something about it. I began a search for a one page, easy-to-read and understand “Know Your Rights” facts page that I could hand out with every estimate. After asking and networking 24 collision Repair collisionrepairmag.com

Now, some may think I hate insurance companies or that I am out to get them. You couldn’t be more wrong. My intentions are to try and take some steps forward to change the way some insurance companies represent themselves to our mutual customers. I demand respect and professionalism from them. I don’t bad mouth them or use scare tactics to sway a customer because it’s financially beneficial for me. How about a statement like, “you have the right to choose the shop that repairs your vehicle? If you don’t have one, we can recommend one for you.” I am sure most shops would have no problem with this. Resorting to intimidation, slander and outright lying does no one in this industry any good. If you want to improve our industry let’s all start acting professionally, show some respect to customers and each other, and above all, be honest. CRM

Rob Dumais is the managing co-owner of Streamline Collision Repair in Barrie, Ontario.

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profiles of success Joe Visconti, owner of Auto Bugatti and manager Rosario Ruggeri.

By Sylvain Meyrous

Joe Visconti and Auto Bugatti built a reputation on excellence in service.

april 2014â&#x20AC;&#x201A; collision Repairâ&#x20AC;&#x192; 27

profiles of success

o e Vis c ont i has always had a passion for beautiful cars,

but his passion for repair and refinish didn’t begin until 1981. Still, one thing led indirectly to the other. He owned a ‘75 Corvette at the time, and caught the autobody bug when he brought it to a local shop. His passion awoke when he discovered what he considers to be a true art form.

In 1982, Visconti began his journey into the profession. He left his job as a technician for Canadian Airlines and enrolled at the Aviron Technical Institute of Montreal to study body repair and painting. Visconti worked privately on cars for various clients before he opened his first shop, Auto Bugatti in Dorval, Que., in 1990. From the very beginning, he has specialized in his true passion of highend cars. These are names that conjure up dreams: Jaguar, Ferrari, Aston Martin and many others. When it comes to repairing these gems, Visconti says he aims at nothing less than perfection.

“My goal is to return the vehicle to its original state. We strive for quality work,” he says. Soon after opening its doors, Auto Bugatti began gaining a reputation for repairing Ferraris. “I began working with Luigi Sports Cars, the original Ferrari dealer in Canada since the 60s,” says Visconti. “We are recognized for it and it’s something we’re proud of. We’ve been repairing Ferraris for over 20 years.” Auto Bugatti continued to grow and branched out into other brands, with accredited repair status awarded by a

28 collision Repair collisionrepairmag.com

number of other manufacturers. Auto Bugatti was accredited by Jaguar in 2004, making it one of only four accredited collision repair centres in Canada. It is also the only shop in the country accredited by Aston Martin. Land Rover has recently expressed its confidence in the facility, granting accreditation for repairs to its vehicles. Work on high-end vehicles led to an early specialization in aluminum, starting with the Honda NSX in 1990. “I was introduced to aluminum in the 90s when the Honda NSX is out,” says Visconti. “I was repairing all of the NSX

profiles of success

from Clockwise: Auto Bugatti in Dorval, Que.; Painter Franco Fortunato in the mixing room at Auto Bugatti; Antoine Oujeil, body finisher at Auto Bugatti. Opposite page: Joe Visconti founded Auto Bugatti in 1990 with a focus on high-end vehicles.

Auto Bugatti doesn’t repair everyday vehicles, and their processes may be a bit different.

in Montreal. This was a car 10 to 15 years ahead of its time.” Early knowledge of how to repair aluminum is definitely an edge in today’s collision repair industry, but Visconti is always interested in new technology and processes. The facility is currently undergoing accreditation for repairs to the Tesla range of electric cars, using technology from the aerospace industry. Auto Bugatti doesn’t repair everyday vehicles, and their processes may be a bit different from those at most shops. “Over the years we’ve developed a certain process,” says Visconti. “When we

hire a new employee, it usually takes them some time to get up to speed, even if they’ve been in the business for 25 years.” A collision facility that wishes to obtain and maintain accreditations must strictly follow extremely rigorous specifications set by the manufacturers. These requirements include regular advanced training on specific techniques. These courses are typically only available directly from the manufacturer. “We have staff training all year long. There is always someone from our facility participating in a course somewhere,” says Visconti. As an example he notes that two

of Auto Bugatti’s technicians are taking a two week course on carbon fibre in the Aston Martin Vanquish model. The training is only available in the U.K. Of course, this has a cost, but those costs pale in comparison to the money needed to cover the equipment required to gain OEM certification. It’s not unusual for new equipment costs to total well over $100,000. Each and every manufacturer develops its own specifications for which tools must be used after extensive testing. Simply put, repairing high-end vehicles is very expensive. Unfortunately, to Visconti’s dismay, he often finds this difficult to get across to insurers. “I’ve been having these arguments with insurers for 20 years,” he says. “Many of them simply do not understand the complexity, time and investment on this type of vehicle. They think a car is a car, but the manufacturers are very strict on what can be repaired and what can not.” Recruiting fresh talent is another challenge for Auto Bugatti, as it is for many in the industry. “There is a shortage of qualified employees,” says Visconti. “There are very few newcomers. The industry average for technicians is 50 or so.” Visconti says that part of the issue is the relatively low starting wage. “An apprentice is paid $14 an hour. The industry simply cannot pay more than what it gets from insurers. It does not inspire newcomers to get into the business,” he says. So, how to find new recruits? Visconti says Auto Bugatti has had no results from want ads, but some success simply through word of mouth. “When we hire a technician, it is always someone who has passion for the job, passion for working with high-end cars and learning new technologies,” says Visconti. “Great work always takes passion. If you want to get quality out, that’s what you have to put in.” CRM april 2014 collision Repair 29

EXECUTIVE VISION

Advantages of Size By Mike Davey

Christian Charest of Desjardins on insurance consolidation, collision avoidance and long-term partnerships.

xecutive Vision focuses on discussions with key players in the auto claims economy, their views on the present industry and their vision for the future. In this issue, Collision Repair magazine’s editor Mike Davey speaks with Christian Charest, Director of Claims, Legal Counsel and Commercial Partnerships for Desjardins General Insurance Group, to discuss his views on sustainable business practices for the collision industry and the effects on repairers of consolidation within the industry. Collision Repair magazine: Hello Christian. Thanks for joining us. The collision repair industry has a number of challenges. In your opinion, what are the three most critical issues? Christian Charest: I think the biggest challenge is the rapid evolution of vehicle technology. Vehicles are becoming so much more sophisticated, with cutting edge technologies like obstacle avoidance systems, parking assist capabilities and automatic high beam control, to name a few. Although many of these technologies are limited to high-end vehicles, what’s cutting edge today will be commonplace in vehicles in a few years. Keeping up with the rapid pace of change—and just wait until cars have pure Wi-Fi internet access – is a real and growing challenge for the repair industry, and has a direct impact on the P&C insurance industry because of repair costs and complexity. To keep up with this evolution will require ongoing rigorous training programs that are

EXECUTIVE VISION

well structured, coordinated and managed by collision repairers and also by insurers. But by doing so, the different players in the repair industry will have a common understanding of what will be required and the impact on the appraisal and repair process. Another big challenge we see for the industry is managing the multiplicity of business insurance models, the expectations of insurers, and the variety of tools used to communicate and manage claims. We feel that our collision repair partners should be careful not to spread themselves too widely by dealing with multiple insurers. Those that do may find it difficult to manage their own processes if they must meet many different insurer expectations in terms of scheduling, cost, quality and client experience. The third challenge is retention of skilled and experienced employees. Skilled people really are at the heart of the repair industry, and shops with a constant turnover will find it very difficult to compete and survive. That being said, it is also important to bring in and train new employees and help them build skills and experience. Smart companies will have succession plans so they can maintain the level of critical repair expertise they need to meet customer needs and to grow. Don’t be surprised if some of the bigger insurers start asking their repair industry partners about their succession planning.

a solid reputation in their communities for the quality of their work and service—not just with insurance companies. Obviously, well-known, high-performance shops are very attractive to insurers, particularly for companies like Desjardins that respect the choice of their clients. The ideal situation for us is to have partnerships with these types of shops. It is much easier to convince customers to take their business to well known and respected collision repair facilities than to shops they don’t know.

CRM: In your view, what are the most important steps for a shop to take to secure longevity? CC: Ongoing employee training and investment in new tools to keep up with technology changes are absolutely critical. It’s so difficult to catch up once you get behind, and it can be very disruptive to try to suddenly leap forward. By staying up to date on a regular and methodical basis, shops can minimize the fluctuation in their workflow and processes and accordingly are better positioned to meet Insurer and client expectations. I also think it makes sense for shops to develop mutually-beneficial long-term relationships with the big insurers in the market. That will help ensure a steady flow of work and the financial stability to invest in the training and tools I mentioned.

CRM: Thinking solely of how it’s going to change the business, what’s the biggest change we can expect in the next few years? CC: Continued consolidation in the insurance industry will have a big impact on the vehicle repair industr y. With Desjardins’ acquisition of State Farm’s operations in Canada, Economical Insurance planning to demutualize, and Intact still on the hunt for more acquisitions, it’s clear that the industry will be dominated by fewer, but larger players down the road. It only makes sense that larger insurers will want to manage their networks of partners to ensure competitive pricing and consistent and predictable service quality that enhances the customer experience. At the same time, the industry should be seriously thinking about the impact on the frequency and severity of claims as vehicles get safer with new crash avoidance systems and other related technologies. How will these technologies impact claims volumes as they become standard? How will

CRM: What do you think will be an area of growth? CC: Collision repair facilities that want to grow should work hard to ensure they have

“

Size has definite advantages in terms of segmenting and pricing, managing claims and in the relationship with suppliers. - Christian Charest

this impact the repair business in the mid to long-term? From a different perspective, how will the changes we are seeing in the climate—with more severe weather events—impact the repair business? How can the shops help insurers manage catastrophic events like ice storms and flooding which bring huge and sudden spikes in the number of claims? CRM: Desjardins recently made public its plans to acquire State Farm Canada, with the deal going into effect in 2015. What motivated Desjardins to make this move? In particular, what is it about the current climate that made this attractive? CC: Desjardins has grown at roughly twice the industry rate over the past five years, surpassing two million policies in force and $2 billion in premium volume. Despite this success, we’ve been very concerned that the industry is consolidating, with fewer, but larger players, and we didn’t want to be left behind. It’s been our goal to be one of the top three P&C insurers in Canada, and despite our strength in Quebec, we still had a long way to go in the other provinces. The acquisition of State Farm’s Canadian operations will allow us to jump from the 7th to the 2nd spot in the industry. Size has definite advantages in terms of segmenting and pricing, managing claims and in the relationship with suppliers. State Farm’s Agent network also provides a way of reaching customers who are uncomfortable with the direct model and prefer a more personal relationship with their insurance agent. CRM: Many collision repair facilities have deals in place with either State Farm Canada or Desjardins. Can they expect to see changes to those deals in 2015? CC: We have a large challenge ahead of us integrating the two businesses, so we don’t expect to make changes to any such deals in the short term. Obviously it is too early to speculate on how any such deals would be impacted or when. But we will at some point naturally expect to leverage our large business volume and realize mutual benefits with the partners serving both insurance companies. Bear in mind, that we plan to continue growing both sides of the company, which of course will mean more work for our preferred collision repair facilities down the road. CRM April 2014 collision Repair 31

Extreme Makeover

It rained constantly, leaving Superior and surrounding businesses closed as flood waters filled the streets.

Ian Viner and the Superior Paint & Auto Body team grew closer amid Calgary’s disastrous floods in 2013.

By Andrew Ardizzi

n Ju ne 2 0 , 2 0 1 3 he av y rainfall hammered cities spanning southern and central Alberta, with many reporting high volumes of rainfall in and around Calgary, exceeding anywhere from 200mm to 325mm over three days. The excessive flooding that resulted led to the declaration of 32 local states of emergency, the calling in of approximately 2,200 members of the RCAF, $1.7 billion in uninsured damages, the displacement of 100,000 people across the region and four deaths. The disaster was called the worst in Alberta’s history by the provincial government, which is what makes Superior Paint & Auto Body’s recovery inspiring. “We’ve been saying we’re Calgary’s newest and oldest body shop. This year marks 75 years that Superior has been in business, so with our renovations it’s both the city’s oldest and newest shop to date,” says Superior’s General Manager Mark Sturby. Superior Paint & Auto Body was first opened in 1939 by Al Viner, father of present owner Ian Viner, who later moved the original location to a more accommodating space just west of the city’s Stampede grounds where Superior continues to

operate to this day. However, while its location has served the Viner family well since 1946, Superior’s employees found their shop among the buildings directly affected by last June’s floods. “Your heart just fell,” says the 68-yearold Ian. “I was devestated, but I thought

“The effort from the staff was more than 100 percent. it was awesome.” – Ian Viner

I have to rebuild it to support my work family and their families. At my age it was hard, but I had to do it.” Altogether, the rainfall resulted in roughly 25 cars stored in the facility’s basement complex, 10 additional cars outside the shop and select vehicles inside the shop itself being written off. Sturby admits though that it could have been so much worse.

“I was in the shop, right in the middle of it, as it was happening,” he says. “We were trying to save our servers. We take our hats off to our staff because every one of them pitched in to get us back up and operational within a tight timeframe.” This was especially moving for Ian, who reveled in watching his extended family pitch in and stick by his shop even while having offers for other jobs extended to them. “It’s like family helping family, everybody pitched in, and that’s what they’re like to me: my work family,” he says. “I always try to say good morning to each of them when I come in and good night when I leave. “The effort from the staff was more than 100 percent. It was awesome.” It took roughly seven months, but Sturby says the facility is now 95 percent operational, although not without some upgrades here and there. Viner seized the masquerading silver-lined opportunity to revamp Superior’s operations to not only bring back what was previously great about Calgary’s oldest shop, but to improve upon the overall shop operations to surpass its previous work capacities. “Before the flood we were talking about renovations, and this gave us the opportunity to revamp the shop,” he says. “So we renovated April 2014 collision Repair 33

Extreme Makeover After

Before: Debris was left scattered as the flood waters flowed out of the shop area, leaving a mess for the shop’s loyal workers to clean up.

Before

our front office and now it’s modernized to fit with the new era of collision repair. “We had the chance to improve our workflow systems throughout the shop to better enhance flow inside the shop,” Ian says. Sturby noted that the renovated front office and reception area has been remodeled to allow for easier access to the appraisal bay, which previously required going through the shop area to access. “We’re just able to get the flow moving much better to repair a customer’s vehicle in a more timely manner,” he says. In addition to the front office and reception area, Superior’s team has also used this as an opportunity to upgrade its equipment to embrace the newest technologies, as well as enlarging the parts room in the coming months. It wasn’t all sunshine and smiles for them though, as Superior had just installed new spray booths 18 months prior to the flooding. The booths incurred some damage, but their suppliers helped them by offering ideas on how to salvage the shop’s booths. “The contractor for our booths came up with some good ideas and we were able to make the booths like new again in a very short period of time,” he says. Yet, the positives that have come out of the ordeal far outweigh the drawbacks, as Superior has righted itself and continues forward towards brighter days. It’s allowed them to retool their operations to fit the contemporary realities of collision repair, which really rests upon the principle of organizing the shop area to lend itself to greater ease of use, combined with more

Months later, the renovated basement looks spotless compared to the immediate aftermath of the flood.

After

Before

Before: At one point during the flood, Superior’s main floor was submerged.

constructive use of the shop’s total space. “Our basement was never set up as a floor body shop. When I started here nine years ago it was mainly just detail and we worked around it,” he says. “Now we’re able to do detail and be close to the washing bay on one side and body repair on the other side. It’s allowed us to have extra room to get more technicians which has contributed quite a lot towards what we’ve needed to accomplish.” Sturby altogether feels the shop and its staff made the best out of a bad situation, and they’re looking forward to getting version 2.0 of Superior Paint & Autobody up and running to full capacity, which truly only had its first month of full operation since the flood in January. That Superior is even running at 80 percent of its workflow capacity is a testament to their staff. “I wouldn’t have thought we’d ever be in a spot where we’d be flooded, it caught everybody off-guard,” he says, noting everything is moving along positively. “We’re a 27,000 sq.

34 collision Repair collisionrepairmag.com

Ian Viner took advantage of the opportunity presented to him and renovated the front office area, which has allowed the shop to improve its flow.

ft. shop and there are stores that are smaller in square footage that aren’t open yet. We’re pretty proud of the staff we have.” Despite the seven month temporary closure, Viner stuck by his employees and they to him, as in the end they aren’t so much employees as they are family—Viner even continued to pay them throughout the shop’s renovations and clean-up. “It stems from ownership, everyone here is treated as family and when a family member is down and out, everybody pitches in and that’s what we got from our staff,” Sturby says. “Everyone was sad to see the state of the shop and we wanted to get it done and back in operation as soon as possible.” Despite the disaster, Sturby and Ian say they’re proud of what they’ve accomplished, of how the staff bonded and how everyone worked together to spin a positive tale of camaraderie despite the terrible situation. “We couldn’t have orchestrated a better team-building exercise,” Sturby says. CRM

features

The Canadian market has become a friendly environment for banner and franchise networks. By Vincent J. Romans

lobalization’s impacts are increasingly evident with the emergence and migration of new and hybrid auto physical damage models from around the globe, some of which have found their way to North America. There has also been an increase in foreign trans-border investments involving various segments within the collision repair, property and casualty insurance, auto insurance, and the automotive aftermarket ecosystem. In light of this, we have analyzed and profiled the Canadian repair marketplace and have positioned it in contrast to the U.S. marketplace. Over the last few years we’ve begun to see an increase in the number of mergers and acquisitions, with companies moving into new markets and expanding their operations. Multiple Location Operators (MLOs), and the collision repair industry in general, continue to move through what we have identified as contraction, consolidation and convergence. We believe that constructive transformation, the inevitable and necessary heavy lifting associated with the integration of businesses, organizations and their platforms, is one of the main reasons consolidation momentum has tapered down.

Other factors, such as higher valuations and more complex transactions requiring longer due diligence periods, also contribute to this temporary respite. We’re currently seeing three main active expansion strategies shaping the collision repair industry. One of these strategies is driven by independent and regional dealership MLOs focusing their expansion within pre-existing markets. Another strategy common among national independent consolidators, such as Boyd/Gerber, is to gain entry into new markets through a continued focus on activity within those markets

is another strong example, continuing its two‐pronged strategy of building out its franchise model in target markets while maintaining and growing its banner network across the broader marketplace. When looking at the North American collision market, it’s very easy to compare Canadian companies to their American counterparts. Ten Canadian provinces and three territories make Canada the world’s second largest country in geographic area as compared to the third-ranked United States. Canada’s collision repair and insurance industries have a number of similar marketplace dynamics when compared to

Top 10 Canadian MLOs (revenue) 1

CSN (B)

Boyd Autobody & Glass (I)

Maaco (F)

CarrXpert (B)

Assured Automotive (I)

10 Hammer Group (I)

Carstar (F)

Craftsman (I)

Fix Auto (F)

ACG Atlantic (I)

B-Banner F-Franchise I-Independent

through clustering and leapfrogging into expanded regions. Thirdly, there has been aggressive expansion by franchise consolidator MLOs such as CARSTAR. CARSTAR is targeting growth with independent repairers in specific markets with some market penetration. Fix Auto

36 collision Repair collisionrepairmag.com

the U.S., including contraction and consolidation, professionally-managed operators, lean-based production and operations, extensive marketing operations through traditional and evolving social media trends, and increasing demands for technicians to continually evolve their competencies and

features

skill-sets. There are also differences related to other facets of the business, such as insurance-industry relations, a commonality is the growing dominance of franchises, banners and MLOs. The franchise, banner/multiple location networks, MLN and MLO segments in Canada represent a significant 55 percent share of the private insurer repairable vehicle market. The top 10 Canadian repairers making between $10 million and $20 million, or greater than $20 million, are composed of eight independent operators and two dealers. These 10 operators account for 12 percent of total Canadian repair revenue—$400,000 from private insurers—through only three percent of total repair locations. Revenue from these locations are nearly four times that of the MLOS/Banners/Networks making >$10M dominate the Canadian collision market share

1.5

1.0

0.5

0.0

average Canadian repairer, with the market being dominated by Boyd, Assured Automotive and Craftsman. However, despite their success the top 10 dealers shops only amounts to 3.1 percent—about 185 shop locations—across Canada. They account for $346,000 of total Canadian shop revenues, which is about 12.3 percent of total industry revenues. Compared to the top 10 Canadian MLOs, including Collision Solutions Network, CarrXpert, CARSTAR, Fix Auto and Maaco, these networks account for over 1,000 collision repair locations, with revenue exceeding $1.3 million; this accounts for nearly half the total revenue across the industry’s top 10. Comparing the Canadian collision market to that of the U.S. landscape, there are few surprises with respect to the differences in each country’s size and relative order of magnitude

regarding the collision repair market and the private property and casualty insurance industries. Certain Canadian marketplace dynamics are different than the U.S., especially as they relate to the government-operated insurance companies in British Columbia, Saskatchewan and Manitoba; one such difference relates to how insurance is acquired and how claims are processed within the provinces. Insurance and collision repair industries and consumer rights also differ in Canada from the United States. Relative to each other, the Canadian industry boasts substantially less financial gains than U.S.-based insurance companies. However, there are similar total numbers in American and Canadian auto insurance companies with little variance in the number of existing firms—there are 259 private auto insurance companies in the United States, with 220 private Canadian companies, in addition to the three public insurance companies. What is interesting though is that despite the larger shadow cast by American-based companies, Canadian insurance companies in the top 10 control 76 percent of the market share, compared to only 70 percent in the United States. Within the U.S. market, independent and dealer MLOs are the foremost business model. In Canada, however, it is the franchise and banner networks that dominate the market. Canada can be viewed as a more consolidated market, where the total MLO/ Franchise/Banner/MLN segment represents 55 percent of Canada’s private insurers and consumer-paid vehicle repairable market size as compared to 22 percent in the U.S. The Franchise/Banner/MLNs in the U.S. and Canada represent approximately the same revenue at $1.4 billion and $1.1 billion respectively. In Canada, this segment is a significant 73 percent share of Canada’s total MLO/Franchise/Banner/MLN revenue; whereas the MLN share of the U.S. MLO/Franchise/Banner/MLN segment is a considerably smaller 18.7 percent. We looked at combining these markets in two ways; MLOs as individual entities operating in either the U.S. or Canadian 2012 U.S.-Canada Market Segments Market Segment

U.S.

Canada

≥ $20.0M MLO

$4.5B

$0.3B

Multiple Location Networks

$1.3B

$1.1B

$10.0-$20.0M MLO/MSO

$1.4B

$0.1B

Total

$7.2B

$1.5B

market, and as consolidated country segments where companies with operations in both markets were consolidated to represent the total of their U.S./Canadian 18 percent of the Canadian collision marketplace controls more than half the revenue

MLO/Banner/Networks (1094) 55% of revenues. Remaining Canadian Market (4906) 45% of revenues.

market share. Looking first at a consolidated U.S./Canada market, the top ten consolidated U.S. and Canada MLO/Franchise/Banner/MLN market size is $4.28 million, representing about 49 percent of the combined U.S. and Canada vehicle repair revenue of nearly $8.8 billion. When looking at the companies individually, without cross-border consolidation, eight of the top 10 operators are located in the U.S. with CARSTAR, Fix Auto, Maaco and Boyd operating in the North American consolidated market. The franchise/banner/MLN segment across the U.S. and Canada combined represents 28 percent of the consolidated market for shops with revenues greater than or equal to $10 million, amounting to about $8.8 billion. Independent dealers making at least $20 million in Canada represents $297 million, compared to U.S. independents who account for $4.5 billion. When all MLO segments are combined in Canada, the total number of shops making at least $10 million composes 55 percent of the total national market share, whereas the same demographic is only 23 percent in the United States. This demonstrates that Canada MLO banner and franchise networks control a larger market share than the indeTotal Revenue pendents and dealer MLOs. Conversely, the indepen$4.8B dents and dealer MLOs have $2.4B a greater presence in the U.S. $1.5B market than do the franchises $8.7B and banner networks. CRM april 2014 collision Repair 37

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Top Trainer

Saeed Ahmed is I-CAR’s most prolific trainer. By P. Palak

aeed Ahmed may be one of the most influential people working in the Canadian collision repair industry today. His influence is subtle, but it’s definitely present. In fact, you may have never heard of Ahmed, but there is a strong chance he’s trained someone you know at some point. He is one of the most prolific I-CAR trainers working in Canada, having delivered hundreds of units of training to many students in just the last few years. Ahmed got into the business of collision repair, because he knew from a young age that he was interested in the skilled trades. As he puts it, “I enjoy fixing and repairing things. I was exposed to the auto industry from a young age, as my father was a mechanic. I was exposed to that end of the business, but I knew that I preferred bodywork to automotive service.” Ahmed began his career as a body technician straight out of high school, through a combination of formal education and on-the-job training. He also later worked at an insurance agency as an appraiser. He found the work satisfying, but there was a part of him that simply wanted to teach. “I wanted to pass on the knowledge that I had gained,” says Ahmed. “This led me to work at I-CAR as a trainer, so I could use my skills to give back to the industry that had provided me with the opportunity to develop expertise.” Saeed Ahmed has been responsible for delivering more units of training than anyone else currently working as an I-CAR instructor in Canada. The motivation behind his zest for teaching so many classes comes from the simple fact that he enjoys training. Ahmed says that training is a “wonderful feeling” wherein every training session pro-

vides him the opportunity not only to teach, but to acquire more and more knowledge about the collision repair industry. He says that the more training he does, the more tuned in with the industry he stays. This has led him to be widely respected in the industry. This respect, he says, is one of the reasons why he enjoys imparting collision repair training to his students. Ahmed describes training as an addiction. His passion for training has also been a motivating factor behind his teaching such a staggering number of classes.

There is a strong chance he’s trained someone you know at some point. Ahmed says he enjoys making a difference in the lives of his students and in the industry. Collision repair training is a mechanism by which he enjoys helping others and himself. The respect he gets from the collision industry and the insurance industry is another reason why he is so heavily involved in training. Training, he says, also gives him the first chance of learning about the latest technological development happening in the collision repair industry. He relishes studying and understanding new material.

Saeed Ahmed.

“My favourite part of being a teacher is being able to provide the training to the technicians at a level which makes them feel worthy and inculcates a sense of self-respect,” says Ahmed. “I really enjoy delivering new material to my students, and I find a lot of satisfaction in providing them with access to new technology.” Forever evolving, the industry is ripe with new ideas and technologies that consistently force us to re-train in order to understand them. Through teaching and training, Ahmed has his finger on the industry’s pulse, and in a landscape where innovation happens constantly, it’s an advantage. While we may concentrate on the need to pass on knowledge and the latest information, there is another aspect to teaching. The greatest teachers don’t just hand their students information, they present it in a way that engages the student. “This is a serious business, but that doesn’t mean the classroom experience shouldn’t be fun,” says Ahmed. “There’s always at least one funny moment in every class I teach. The material we’re covering isn’t boring, far from it. The process should be as exciting as the material.” CRM april 2014 collision Repair 39

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Julien displays a teaching aid constructed to show how different primers and lighting conditions can radically alter the look of the final coatings.

Estimate

Basics CIIA’s six-night course teaches estimators what they need to know. By Mike Davey

40 collision Repair collisionrepairmag.com

t’s Thursday night in Oakville, Ont., and the latest class taking the Basic Estimating course is gathered around a table on the second floor of CARSTAR Oakville West. They’re on the fourth night of the six night course, learning to write the most accurate estimate possible. Jean-Marc Julien is the instructor for this particular group. An experienced trainer, both with I-CAR and in his current position as head of training and development with Assured Automotive, Julien has taught the Basic Estimating course to well over 100 people over the last few years. The program itself has been running successfully for well over a decade. There are few, if any, programs like it anywhere in the country. Tonight’s class consists of six people from local facilities. It’s a fairly typical turnout for the program. Classes run for six nights, typically on Tuesdays and Thursdays. “We’ve had amazing feedback from this course,” says Julien. “This group is all entry-level as a lot of shops have been hiring new people. But I adapt the class to who I’m teaching. It’s a very easy course to modify. With a more experienced group, we’d go more in-depth.” No matter the number of students or their relative experience, one overriding goal remains the focus: how to write a fair and accurate estimate. Tonight’s session reviews and expands on topics covered in the previous three nights, with a dual focus on putting together a handwritten estimate and how the software works. “The insurance companies are onboard with this sort of training,” says Julien. “They want to pay for what we do, but they also want to know that the estimate is accurate.” Increasing vehicle complexity, not to mention tighter margins, have raised the importance of highly accurate estimates from the earliest possible point in the repair process. An estimator that knows every step of the OE recommended procedure is an estimator who can make sure to include, for example, the time needed to remove and replace a door seal. “It’s quite simple,” says Julie to the class. “If you don’t list it, the facility can’t charge for it. You need to know what can be put on the estimate and what must be lumped in with other procedures.” Ultimately, estimators and appraisers must know what is repairable and what is not.

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Increasing vehicle complexity, not to mention tighter margins, have raised the importance of highly accurate estimates. “Experienced techs would have a leg up when it comes to writing estimates,” says Julien. “We’re working on including them into the curriculum. Often, it’s the techs who are informing the appraisers on how to write an estimate.” The Basic Estimating course is run by Collision Industry Information Assistance (CIIA), Ontario’s provincial trade

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Jean-Marc Julien leads the Basic Estimating course in the training area at CARSTAR Oakville West.

association. John Norris, the association’s Executive Director, believes that it’s a model that could find success in other areas of the country. “There’s really nothing else like it,” says Norris. “I-CAR has a course that covers the most basic parts of the estimating process, but its intent is really just to scratch the surface and give the students tips on

how to acquire more knowledge. This class gives even an entry-level person the knowledge they need to start writing fair, accurate estimates that bring more profit to the shop.” For more information on CIIA’s Basic Estimating course, please contact John Norris at 1-866-309-4272. For more information on CIIA, please visit ciia.com. CRM

april 2014 collision Repair 41

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Welding Gap? Canada’s techs have the tools, and I-CAR is helping to make sure they have the technique. By Mike Davey

f there is a welding gap among Canada’s collision repair technicians, it is not due to a lack of available training. I-CAR offers numerous options for those looking to build their skills. Solid, dependable training is a definite asset to collision repairers, as welding is a skill they frankly don’t get a chance to practice ver y much. Training has to give them the best possible guide. Interesting things happen when we look at the number of people taking the same courses in 2013 compared to the previous year. Steel GMA (MIG) Welding Qualification drops somewhat in popularity, likely due to increasing numbers of technicians who already possess the certification. Two courses in particular showed big jumps: Squeeze-Type Resistance Spot Welding and Aluminum GTA (TIG) Welding. It’s not unreasonable to assume that this is being driven by new or upcoming equipment purchases, which were in turn driven by new repair procedures. Welding/Cutting (Alum) 1 shows a definite drop from 2012 to 2013. This may be a blip on the radar. We suspect numbers for this course will show an increase in 2014. In fact, we would be very surprised if all of the courses applicable to aluminum repair didn’t show an uptick for 2014. The aluminum paneled Ford F150 is having far reaching effects. In addition, rumour has it that GM will produce an aluminum paneled pick-up truck as well, increasing the occurence of this once exotic material. CRM

42 collision Repair collisionrepairmag.com

I-CAR Canada Welding Training 2013 80 70

50 40

30 20

10 0 Squeeze-Type Resistance Spot Welding

Welding/ Cutting (Steel) 1

Steel GMA (MIG) Welding Qualification Series

Welding/ Cutting (Alum) 1

Aluminum GTA (TIG) Welding

Number of Students

I-CAR Canada Welding Training 2012 100 90

80 70 60

50 40 30 20

10 0

6 Squeeze-Type Resistance Spot Welding

Welding/ Cutting (Steel) 1

Steel GMA (MIG) Welding Qualification Series

Welding/ Cutting (Alum) 1

Aluminum GTA (TIG) Welding

Number of Students

I-CAR Canada Welding Training 2012/2013 Percentages Squeeze-Type Resistance Spot Welding

6% 21%

26%

Welding/Cutting (Steel) 1 Steel GMA (MIG) Welding Qualification Series Welding/Cutting (Alum) 1 Aluminum GTA (TIG) Welding

16%

31%

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products

Joins The latest and greatest in welding equipment and accessories.

he only welding process available until the end of the 19th century was forge welding. This was a process used by blacksmiths to join two pieces of metal by heating and hammering. By the closing years of the 1800s, other processes had been invented, including arc welding, oxyfuel welding and electric resistance welding. Other welding technologies advanced quickly, especially during the World Wars, and numerous processes and techniques have since made their debut. Over the next few pages you’ll see a few of the top welders currently available for different applications. They include both resistance spot welders and various gas welders. In each case, the products are listed alphabetically by manufacturer. As always when considering new equipment or lines, please research any purchases thoroughly before you sign on the dotted line. Information presented in this section comes directly from the manufacturer. Inclusion in this section is not intended as an endorsement of these products by Collision Repair magazine or its staff.

Car-O-Liner

Car-O-Liner’s CMI3000II MIG/MAG welding system is designed for modern car body work, capable of accommodating a variety of steels, aluminum and MIG brazing. The unit saves up to 200 welding jobs and favourite settings on an SD Card. Additionally, Car-O-Liner says its true spray pulse and Quattro Pulse technology makes the CMI3000II MIG/MAG primed to complete structural aluminum repairs. The system monitors and adjusts itself during the weld to help protect heat sensitive materials from damage. Much like the company’s AUTOMIG model, the CMI3000II sports a swivel torch head with a remote control, allowing for weld setting adjustment right from the torch. The CMI3000II MIG/MAG is part of the Ford 2015 F-150 Collision Repair Program.

Car-O-Liner says its pulse boost welding systems are designed for all materials, ranging from aluminum to high strength steel. The AUTOMIG 273i Pulse Boost MIG Welder’s auto pulse technology helps to keep heat-sensitive materials safe, while welding presets and on-the-fly adjustments make the 273i pulse boost easy to use. Capable of operating in either single or three phase power, its digital interface puts all the controls at your fingertips in a way that’s easy to read. It’s also equipped with a MIG-A Twist torch, allowing welders to swivel the torch head wherever it’s needed to access hard-to-reach places. Complementing the single pulse model, its duo pulse counterpart off e r s much of the same, but with the addition of a second torch to increase the efficiency of all welding projects. The AUTOMIG 273i Pulse Duo Boost MIG Welder sports an easy-to-switch-over function that allows you to go from welding to brazing at the click of a switch, without changing torches, wire, drive rollers or gas.

CMI3000II mig/mag

> www.car-o-liner.com

automig 273i pulse

> www.car-o-liner.com

april 2014 collision Repair 45

products

Elektron

The MultiMig Series consists of the 511 and the 522 aluminum capable MIG/MAG welders. The key difference is that the 522 can be equipped with two separate torches simultaneously, each with different reels and wire, increasing versatility. The 522 also has a double-pulse feature that controls welding parameters to achieve a classic TIG-looking weld bead. The MultiMig Series features synergic pulsed technology, and includes a complete set of synergic programs in memory. Elektron says the inverter technology enables precision electronic control of output power for better quality welds, while Integrated Power Factor Correction (PFC) technology reduces input power by avoiding energy waste. Two types of torches can be used: a standard MIG torch or the unique push-pull torch. Many programmable options are available to customize the unit’s operation. The MultiMig 511 and 522 are part of the Ford 2015 F-150 Collision Repair Program.

The MultiSpot M22 AL is a featured part of Elektron’s MultiTool Aluminum Dent Repair Station. The welder is aluminum capable by using capacitor discharge technology that enables very high current density very briefly to break through the surface oxidation and insulation without damaging the sheet metal below. Elektron says the MultiSpot M22 AL can weld up to 6mm diameter stud bolts on a clean, bare aluminum surface. The unit comes complete with a stud-gun and 2-clamp ground cables. The package also includes user friendly information displays and control knob. Elektron also produces the MultiSpot M25 AL, a similar unit that also features the company’s Integrated Power Factor Correction (PFC) technology and a two-capacitor design for fast consistent welds and high output at relatively low energy input. The MultiSpot M22 AL from Elektron is part of the Ford 2015 F-150 Collision Repair Program.

Multimig series

Multispot M22 AL

> www.chiefautomotive.com SEMA Booth #10639

> www.chiefautomotive.com

Pro Spot

Spanesi

The PHS-100 from Pro Spot proudly boasts that there is no 220V or 3-Phase required for this battery operated DC spot welding system. This is a definite advantage in many collision repair facilities, where power supply is often at a premium. According to the company, the Hybrid Spot Resistance Spot Welder is a great alternative spot welder where 3-Phase power is not available or overloaded. The battery operated welder delivers high amperage DC weld current designed to produce powerful spot welds. No input power is required to operate the welder. The built-in charging system is capable of charging all batteries at the same time from either 110V or 220V charging voltage. Pro Spot says the spot gun features a double-acting cylinder, wide-spreading electrodes and self-aligning electrodes. The welder comes with a variety of extension arms, adding to its flexibility, and the unit also features 10 different single-sided welding applications. The Hybrid Spot features a large control panel displaying current control, battery voltage and air pressure.

The Spanesi Smart-Plus Resistance Spot Welder from TECNA is a microprocessor controlled resistance spot welding system, specifically designed for collision repair facilities. According to Spanesi, the key to the Smart-Plus is its fully automatic operation, with no input required from the technician. The operator simply pulls the triggers and welds. The welding control unit with digital touch-screen shows all necessary welding parameters according to the type of tool as well as the type and thickness of the sheets to be welded. The system automatically acknowledges which tools are connected, and features a welding tool equipped with a transformed that is connected to the machine by means of an industrial plug and quick connection devices. The Smart-Plus Resistance Spot Welder is fully liquid cooled by means of a closed circuit cooling systme. This includes the transformer, arms and electrodes. Spanesi says the Smart-Plus has the most OEM approvals of any unit on the market.

smart-plus

phs-100

> www.prospot.com 46 collision Repair collisionrepairmag.com

> www.spanesi.com

products

Spanesi

Star Company

Spanesi’s MIG Pulse Synergic Welder accepts five torch types, including MIG/MAG torches for aluminum, MIG braze and steel. In addition, an MMA-Stick torch and TIG torch are available as options. There three wire drives, so changing spools of wires and torches is not necessary, with the unit always ready to load aluminum, silicon bronze and steel wires. Spanesi says the welder is more than capable of handling collision repair duties, and has the advantage of centralizing all welding material types and operations into one unit. “Smart” software in the welder adapts to the correct weld settings and gas automatically at the press of a trigger. Its synergic curve programs use pulse technology to meet the needs of the materials.

The Miracle Aluminum Dent Puller is part of the Miracle System produced by Japanbased Star Company, and carried in Canada by Titanium Tools and Equipment. The Miracle Aluminum Dent Puller u s e s L i f t A rc Te c h n o l o g y with Argon Shield to weld slotted keys to aluminum panels. The keys are very similar in design to the steel keys used in the steel Miracle System, but made of an aluminum alloy. In both cases, special keys are included specifically for welding onto body lines, ensuring a smooth, accurate pull on every part of the panel. According to the manufacturer, the result is more like a MIG weld in the way the key attaches to the panel. The manufacturer also says that the weld is much stronger than a similar weld provided by a capacitor discharge machine, with less chance of blowing holes in the metal. With the Miracle System tools, the manufacturer says you will have the ability to pull on a panel anywhere on the vehicle with full control, meaning you can repair damage that would be difficult or impossible with conventional systems.

> www.spanesi.com SEMA Booth #10669

> www.titanium22.com

MIG PUlse SYNergic

Steck Manufacturing

accessories

Steck Manufacturing d o e s n ’t p ro d u c e welders, but they do make accessories to help you weld faster and easier. Steck’s MIG Light allows you to light the area to be welded so that you can locate your torch where you need it before you strike an arc. The large diameter on/off button can be actuated while wearing welding gloves, and the MIG Light can assist you whether you are using a traditional or auto-darkening helmet. Steck says the MIG Torch Holder quickly and easily holds your MIG torch close to your work area. It attaches directly to the vehicle you’re working on and the simple prong design allows for quick and easy removal. The spring mounted floating magnet heads adjust to the contour of the vehicle body, ensuring a snug fit. The MIG Torch Holder fits most MIG, TIG and Plasma torch heads.

> www.steckmfg.com

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Practicing technique on a plate. Developing technique is absolutely vital when it comes to welding and it cannot be learned out of a book.

Steel Knowledge Increasing use of high-strength steels point to Canada’s welding gap. By Mike Davey

e’ve come a long way since the days when forge welding was the only game in town. Forge welding is a simple matter of heating and hammering to join pieces of iron and steel together. No matter what else you can say about welding today, it’s definitely not simple. We’ve seen numerous forms of arc welding come into the industry, such as SMAW, MIG and TIG, as well as the various types of resistance welding. In any case, advances in welding for the collision repair industry are not driven internally, but by the vehicle manufacturers. We have not seen enormous changes in the materials themselves in recent years, but we have seen a continuation of the april 2014 collision Repair 49

WELDING SPOTLIGHT

We have not seen enormous changes in the materials themselves in recent years, but we have seen a continuation of the trend away from traditional mild steels.

trend away from traditional mild steels. Today a technician is far more likely to encounter high-strength steels of various kinds than ever before. These materials can present serious challenges. Jeff Coppes is a member of Car-OLiner Company’s Ser vice & Welding Support Team. He notes that the challenge is not in new materials, but simply a shift in percentages. “The percentage of ultra-high strength steel is going up, even compared with just five years ago,” says Coppes. “The average tensile strength is going up. Typically, it used to be below 600. Now we’re often seeing steels with a tensile strength of 780 and up.” While these steels aren’t new, their increased use places a burden on shops to make sure they have up-to-date equipment. “It really emphasizes the need for the newer style welders,” says Coppes. “Everything they’re doing to lighten the car

makes welding trickier. The main concern is heat. Controlling the heat is absolutely key. If we don’t weld and cool correctly, there’s a potential to take high-strength steel back to a mild steel.” The recommended procedure typically involves resistance spot welding, but MIG welding can still be used in certain applications. “With resistance spot welding, you can hold it under pressure and cool it quickly,” says Coppes. “With MIG welding, because of its nature, you’re looking at more heat dissipating through the metal and that can weaken it. However, you’ll start to see that some of the more advanced MIG welders can be used to braze high strength steel. It’s a matter of precision.” Higher strength steels save weight by allowing car manufacturers to use thinner sheets. “Instead of using 2mm of a milder steel, they can go down to 1mm and get

50 collision Repair collisionrepairmag.com

the same strength,” says Coppes. “Instead of doing a C-frame, they’re often moving toward square framing, and by changing over to HSS, they’re able to form those thinner welds.” Matthew Bannister of Titanium Tools and Equipment carries the Pro-Spot line of welders in Canada. He confirms that we’re seeing more and more of the once “exotic” materials. “The car manufacturers are trying to make their vehicles more fuel efficient, that’s for sure,” says Bannister. “In addition, they’ve got new requirements for rollover, side impact, etc, and that’s affecting design. The passenger cell has to be stronger than it did before, but they can’t add weight. That’s a big part of the reason we’re seeing more carbon fibre, more aluminum and more highstrength steel.” Tim Morgan is the Managing Director of Spanesi Americas. He foresees

WELDING SPOTLIGHT

Instructor Bill Davidge sets up a test stand during an I-CAR welding certification test at CARSTAR Vision Park in Hamilton, Ont.

aluminum becoming more mainstream, possibly accompanied by higher rates of panel replacement, rather than repair. “The higher the tensile strength, the thinner the sheet. The thinner the sheet, the more brittle it will be,” says Morgan. “I think this may lead to more outright panel replacement. Structural straightening will mean bringing it back to spec, then cutting off the damaged portions.” Morgan notes that even resistance spot welders purchased five or six years ago might not meet modern demands. It’s all about bringing power to where it’s needed. “One of our latest entries is a trans gun welder, with a transformer at the tips,” says Morgan. “You’re losing voltage all through the cables. Putting the transformer at the tip gets the power directly to the material quicker with less line droppage.” It’s not just the materials themselves that present challenges to today’s techs,

it’s the thinness of the metal. The thinner the metal, the less resistance there is to cracking and other issues. This is still a material issue at its core. However, there is another issue when it comes to welding for collision repair, and that’s the human element. It’s been said in recent years that there is something of a “welding gap” when it comes to where Canada’s technicians are, and where they really need to be when it comes to welding skill. Terry Abbott is also with Car-O-Liner Company’s Service & Welding Support Team. He says he’s certainly seen technicians who don’t have the welding ability they should, but that there are also technicians who are on top of the issue. “I’ve had experiences both ways,” says Abbott. “Some of the techs are up on the new technology and some of them are set in their ways. To be honest, I think that’s probably what is driving the creation and adoption of ‘smart’ welders.” Some of the most advanced welders available on the market today are indeed ‘smart.’ The welder itself determines the necessary parameters for the material in question. Abbott says that even some newer MIG welders have gone to that, telling the technician what type and thickness of filler wire to use. “They’ll also compensate for the type and thickness of the material,” says Abbott. “When we talk about the ‘welding gap,’ the real problem is that body techs aren’t welders. They may only have to weld on a car once a month. No doubt if they had a torch in their hands all the time they’d get better quick, but that’s not going to happen. Having these new welders will definitely help the industry in terms of efficient, safe repairs.” Proper welding technique is a matter of both training and practice. “Very rarely do I see a technician make a test weld,” says Morgan. “You need to be able to do a pull test, to make sure your weld is correct.” Morgan says the information is readily available, but it seems the problem is that it may not be getting to where it is sorely needed. “I-CAR and equipment providers have that type of information,” says Morgan. “It’s there, but is it getting to the shop? I still hear shops saying ‘I can’t afford to send my guys to training.’ Sorry, but that’s wrong. You can’t afford not to.” april 2014 collision Repair 51

WELDING SPOTLIGHT

This graphic shows the cab support structure of the 2014 Chevrolet Silverado, which uses high-strength steel to increase rigidity, improve safety, and remove unnecessary weight. (Image appears courtesy of General Motors.)

There’s another challenge when it comes to welding in the shop setting that has nothing to do with either materials or technician skill levels. The OE welds are performed in a factory setting, with full industrial power supply and robotic welders. These are power levels and equip-

ment that collision repair facilities simply do not have access to. So how can a shop replicate OE welds? “We absolutely can replicate it,“ says Abbott. “We have tested it, and we have approvals from the OEM that it does replicate what they’re doing.”

52 collision Repair collisionrepairmag.com

That does not mean that the process is the same, or that it will give the exact same result. However, it will still meet the OE’s criteria for safety and structural integrity. “We may have to go a slightly different route to get where we need to be,” says Abbott. “In a factory setting, we’ve got 25,000

WELDING SPOTLIGHT

North American Light Vehicle Metallic Material Trends -

Body and Closure Metallic Material Content by Type

2007

0.8%

amps, rather than the 12,500 amps common to most shops. Using the right equipment, you can achieve the same end result.” Abbott says there are some manufacturers who are now spot welding aluminum. This is not a technology available to collision repair facility, but with HSS the capability exists now to produce a repair that is just as safe as the original. “Seldom will we have one piece of equipment that allows us to do the whole repair,” says Abbott. “You may have to

spot weld and then bond and rivet. There are several different processes for complete repairs.” Matthew Bannister notes that there are ways around the power supply issue. “Even leaving aside industrial settings, there are plenty of people who just don’t have the power available to run most spot welders,” says Bannister. “The Pro-Spot Hybrid uses four car batteries to overcome that issue. When you’re ready to use it, it’s ready for you.” CRM

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april 2014 collision Repair 53

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Proposed law will provide move-over protection to towers O n t a r i o’s M i n i s te r o f Tr a n s p o r t , G l e n Murray, has recently introduced a wideranging piece of road safety legislation. In addition to new regulations regarding distracted drivers and motorists who knock over cyclists with car doors, there is one provision dealing spe cifically with the towing industry. In particular, the proposed law would mandate drivers to slow down and move over when passing a tow truck that has its yellow lights activated. This is not the first time Ontario has seen a law like this put forward for consideration. Garfield Dunlop, MPP for Simcoe North, had twice tabled a private member’s bill that would have forced drivers to slow down and move over. The first time, it died because an election was called. The proposed law never made it the second time because

former Premier Dalton McGuinty prorogued the government. The proposed provincial changes won the approval of the Canadian Automobile Association (CAA) and the Ontario Trucking Association. “I’m really pleased that we can finally get this legislation before the house,” Dunlop says. “This is a government bill, so it should have a bit more strength than a private member’s bill. A government bill is meant to pass and meant to become law. This is one of those bills that can actually happen that way. “This is one where everyone kind of wins on it. If any bill can pass very quickly, it would be this one.” A possible spring election still looms in Ontario but Dunlop said the government

could work quickly to pass Murray’s bill. “I think we could really make this thing happen in two or three months. Once we get it proclaimed, it doesn’t matter after that if there’s an election,” Dunlop says. “There’s a certain amount of instability here at Queen’s Park so I’m definitely worried it might not happen.” As Dunlop notes, it might not be time for towers in Ontario to celebrate just yet. TowTowers in Ontario need this protection, but that’s no guarantee that they’re going to get it. On the surface, move-over bills seem like relatively simple pieces of legislation that should garner strong public support, but the history of trying to pass the legislation in Ontario shows that it’s anything but simple. Ontario’s professional towers will have to wait and see what Queens Park decides.

New Super Easy Wedge from Steck Steck has announced the release of the company’s latest wedge clamp. Some of today’s new vehicles may require additional pressure and surface area to spread the force along the door when performing unlocks. New vehicles are being built with sturdier window frames that necessitates the additional pressure when unlocking vehicles. Doors on larger vehicles especially require added pressure when per forming unlocks. Super Easy Wedge (PN 32923) is a larger version of the Easy Wedge to be used as an accessory with our BigEasy Lockout kits. The Super Easy Wedge, as well as our Easy Wedge, are inserted to create a controlled opening of the vehicle door. Once inserted the wedge can be inflated to the

desired size, allowing you to insert your BigEasy tool to safely unlock the vehicle. Our bigger wedge can provide more power as well as a bigger opening to be able to maneuver the BigEasy lockout tool. Super Easy Wedge is made in the U.S., is a seven by nine inch inflatable wedge made from ballistic nylon to prevent slippage in extreme weather. The Super Easy Wedge will also have a taffeta print on the exterior with a 30-gauge polypropylene insert for stiffness which will lead to ease of insertion into the vehicle. The Super Easy Wedge has a contact area of 2.5 by 4.5 inches, giving the wedge 168.75 pounds of force. The bulb has been increased by 50 percent to allow for fewer compressions to fill the wedge. The Super Easy Wedge also provides more

Steck says its new Super Easy Wedge provides additional pressure when unlocking a vehicle.

power and has a larger surface area allowing for larger openings and better weight distribution resulting in a smaller chance of damage to a vehicle when trying to unlock it. For more information on Steck, please visit them online at SteckMFG.com.

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

april 2014 collision Repair 55

Contents Recycling News.....................57- 63 Proposed recycling regs, upcoming conferences and much, much more. Recycler’s View...........................64 by David Gold

Standard Auto Wreckers to rebuild By Mike Davey

Firefighters were called to Standard Auto Wreckers early on March 3 to deal with a fire that may have started in the facility’s warehouse space.

Ontario MOE releases ELV processing standards report By Andrew Ardizzi

Firefighters were called to Standard Auto Wreckers on March 3 to battle a four-alarm blaze. The fire broke out at the auto recycler’s Toronto location on Sewells Road at 1:30 a.m. while the facility was closed. Three people were present at the business when the fire started but all escaped unharmed and no injuries were reported. Members of Toronto Fire Services had to deal with adverse conditions caused by extreme cold, in addition to battling the fire. The fire hydrant in front of Standard Auto Wreckers was out of commission, forcing firefighters to transport water from nearly a kilometre away, using more than a dozen fire trucks as pumping stations along the route. The cause of the fire is currently under investigation. David Gold, co-owner of Standard Auto Wreckers, spoke to Collision Repair magazine early March 3 to discuss the blaze. “We’ve surveyed the damage, and it Continued on page 58.

looks like it started in the dismantling and warehouse area,” says Gold. “No one works here on Sunday, but we’ve got 24 hour security and they saw it right away. At this point, we really don’t have any idea how it started. We don’t even use torches in that building.” Employees of Toronto Hydro were hard at work to restore power to the recycling facility located near Steeles Avenue in Toronto. The buildings at Standard Auto Wreckers are separated into two main clusters. The central office was untouched by the flames and Toronto Hydro just arrived to turn the power back on when we spoke to Gold. “Once the power is back on we can start on getting back to business. We’re also going to start looking over the videos to see if we can see how it started,” says Gold. “Toronto Fire Services and Toronto Hydro have both done great jobs in helping to contain and mitigate the damage. A lot of firefighters

The Ontario government’s Ministry of Environment (MOE) has released a proposal calling for the implementation of standards concerning the processing of end-of-life vehicles (ELV). The proposed amendments to Regulation 347 under the Environmental Protection Act would standardize the necessary conditions to legally process to-be-retired vehicles. Ontario’s automotive industry is a central figure in the management of potential environment impacts as it relates to recycling procedures, vehicle processing and ultimately their disposal; this includes dismantling, depolluting, crushing and the shredding of ELVs. These are vehicles considered to have no market value as a means of transportation, or a market value less than the cost of needed repairs. The proposed changes would replace the phrase “derelict motor vehicle” with “end-of-life vehicle.” The move by the MOE would adopt the language used within the auto recycling industry to limit confusion. Secondly, the revised definition is complemented by narrowed criteria for ELV exemptions to sites that at any time have no more than 10 ELVs on-site, Continued on page 59.

april 2014 collision Repair 57

Standard Auto Wreckers ... continued from page 57.

have trained here over the years, and they know we’re very safety conscious. The guys I spoke to seem to be as puzzled as we are.” Gold says they are in currently in the process of rebuilding. As of publication, the Toronto location of Standard Auto Wreckers is open for business, although Gold has moved the company’s late-model dismantling facilities to Standard’s Ottawa location. Although their servers and administrative files were unharmed, production, warehouse, shipping and loading docks are a write-off. Even still, he and his dedicated crew have made the best out of a bad situation; parts sales were back in operation the morning of March 4. “We stayed at work very late Monday to rearrange our shipping area into a section of our front office so we can maintain a sense of normalcy,” he says. “Our team is pretty hardy, staying late to make sure we could get back on our feet right away. It showed me

Employees of Toronto Hydro were hard at work the morning of the fire to restore power to the auto recycling facility located near Steeles Ave. in Toronto.

the kind of family we have here.” He’s also appreciative of the outpouring of support from fellow recyclers who contacted him early March 3 to offer aid and advice. “This could have been much, much

worse,“ says Gold. “For me, this showed me that other recyclers have got our back. They were literally still cooling off the site when the calls, emails and texts with offers of support and help started pouring in.” CRM

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58 collision Repair collisionrepairmag.com

Ontario MOE ... continued from page 57.

receive no more than two ELVs a year, and do not flatten, crush, shear or shred ELVs. Further, in conjunction with the Vehicle Dismantling and Recycling Industry Environmental Planning Regulation and the Canadian Auto Recyclers’ Environmental Code (CAREC), the list of regulated ELV contaminants would be further complemented by a depollution notice containing the business name and address of the ELV processing site, the Environmental Activity and Sector Registry Number or Environmental Compliance Approval number, the date of ELV processing at the facility and the vehicle identification numbers of all ELVs that are processed. Eligibility would further hinge on meeting criteria focused on expanding waste management operations, and the replacement of any plant structure, equipment or mechanism that discharges harmful contaminants into the environment. This is to ensure that all ELV facilities are in compliance with industry standards and government regulations. These regulations would also work towards limiting who can legally process ELVs. Chief among the proposed operating requirements are specific protocols limiting where ELV processing can occur, the necessity for crushing equipment that’s able to capture and prevent the escape of excess liquids, that crushed ELVs must be stored on an impermeable surface with the same applying to wet vehicles, that each fluid released during disposal be collected and properly stored, and that each tool or item used to clean up excess waste is properly stored. When storing waste products on-site, facilities must notify the MOE after 90 days of storage for any one contaminant, no contaminant can be stored longer than 24 months, all batteries, mercury-based waste and leadbased products must be sufficiently stored and covered, and each container housing a specific material must be clearly labelled to identify the contents. To further ensure compliance, all storage areas must be inspected weekly, and management must employ safe practice and ensure all personnel are trained as it relates to spill management and the employment of an action plan should a spill occur on-site. All companies must maintain up-to-date documents and records detailing their own

compliance and that of employees, notably inspection, maintenance and repair records. The transition toward these new processing standards would not be immediate, but would necessitate the gradual and even-

tual 100 percent compliance with government regulations to bring the industry fully into a focused standard. To read the MOE report on ELV processing standards, please visit EBR.gov.on.ca.

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april 2014 collision Repair 59

ARC, Summerhill announce Grants in Gear winners The Automotive Recyclers of Canada (ARC) and Summerhill Impact have announced the four winners in the inaugural award of the Grants in Gear program. A five-member jury used a scoring matrix to evaluate each application’s potential to achieve their stated environmental results, as well as to deliver against their work plan and budget. The winners, located throughout British Columbia, Alberta and Ontario, will each receive up to $25,000 to help further the environmental outcomes of their projects. “The review committee evaluated more than 30 applications and it was hard to choose just four winners,” says Ed MacDonald, President of the Automotive Recyclers Association (ARA) and owner of Maritime Auto Parts. “We were impressed by the innovative ideas brought forth by Canadian NGO and entrepreneurial groups and look forward to witnessing the positive environmental changes made possible by Grants in Gear funding.” The four winners are: Fraser Basin Council, who will deliver the “E3 Fleet: Gear Up!” project to provide customized solutions to reduce fleet emissions and improve the environmental and economic performance of 10 fleets throughout Canada.

Recycling Council of Alberta, who will develop an offset quantification protocol to apply to the greenhouse gas emissions associated with the diversion of waste through recycling. Plug’n Drive (in partnership with WWF-Canada and the Canadian Condominium Institute - Toronto Chapter), who will identify and address the technical, legislative and logistical issues that prevent the installation of electric vehicle charging stations in condominiums. Automotive Recyclers Environmental Association (AREA), who will establish an infrastructure to responsibly manage and recycle endof-life vehicles (ELV) from a remote northern community in British Columbia. AREA also won the Green Recycled Parts Impact Award, for which they will receive an additional $5,000 that will be used to expand their program to additional remote locations and engage First Nations Communities. AREA was also selected to receive the Green Recycled Parts Impact Award, which they will use to develop programs for additional remote locations and First Nations Communities, and demonstrate how the CAREC standard for auto recycling can be applied in remote locations. “The Automotive Recyclers of Canada is showing strong leadership on the issue of managing ELVs in remote communities across Canada, says Colin McKean, Executive Director, Automotive Recyclers Environmental Association. “The grant will be used to develop the procedures that can be used by organizations and communities to manage ELVs in remote locations. The long-term goal of ensuring all ELVs in Canada are managed in an environmentally appropriate manner is a step closer thanks to this funding from ARC.”

Motorhog Doncaster to host CARS 2014 The Complete Auto Recycling and Secondary Materials trade show will take place June 5 to 6, 2014 at Motorhog Doncaster in the U.K. CARS is organized by Environment Media Group, with sponsors Fab Recycling, JCB and JMC Recycling Solutions. The Automotive Recyclers of Canada is one of the industry associations supporting CARS. Ed MacDonald of Maritime Auto Parts is the current President of the Automotive Recyclers Association (ARA). MacDonald will be in attendance to officially represent both ARA and ARC. For more information, please visit cars-expo.com or contact Iona Smith at +44 20 7633 4500 or via email to iona.s@environmentmedia.co.uk.

60 collision Repair collisionrepairmag.com

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62 collision Repair collisionrepairmag.com

The Alberta Automotive Recyclers and Dismantler’s Association has revealed plans for its next Annual General Meeting and Conference. The AGM takes place in Wetaskiwin, Alta. on May 1 and 2, 2014. “This year we’re doing things a little differently,”says Ian Hope, AARDA’s Executive Director. “We’ve decided to hold our AGM at the Reynolds Alberta Museum in Wetaskiwin, just 40 minutes or so south of Edmonton and about 20 minutes from the Edmonton International airport. We chose the Reynolds Alberta museum as our venue after hearing how many of our members have not yet had the opportunity to see this world class exhibit, and particularly with them having a great deal of interest in the many old and historic vehicles that are displayed there.” Upon arrival on May 1, delegates will be treated to an evening reception in the Reynolds Gallery. Food and refreshments will be available, with some of the vehicles from the Museum’s current special feature, “The Fabulous Fifties” enhancing the setting. The Museum’s theatre will host the AGM on the morning of May 2, leaving plenty of time for attendees and family members to visit the museum in the afternoon. In addition to the extensive collection of cars and trucks, the Museum also features antique farm machinery, a collection of restored vintage aircraft and other exhibits relating to the history of transportation.

The Reynolds Alberta Museum is home to an internationally acclaimed restoration and conservation shop. Special tours of the shop for AARDA AGM attendees will be available after lunch on May 2. The official reception and gala dinner takes place at the Best Western Hotel the evening of May 2. Entertainment for the event will be announced shortly. Room reservations may be made by calling the Best Western Wayside Inn at 1-877-3586177 and asking for the special AARDA rate, starting at $115 plus taxes. The Super 8 Wetaskiwin is also offering a group rate for AARDA AGM attendees at $119 plus taxes. The Super 8 rates include breakfast. “Our conferences always offer great education from speakers, presenters and networking opportunities,” says Hope. “This year, we’re going beyond that in a very practical way. If it’s true that a picture is worth a thousand words, then how much more tangible might it be to go beyond simple words and pictures and spend a day or two being among the actual cars and trucks that are part of our long and intriguing history as an industry? Having delegates from other Provinces is always a plus for us, so I sincerely hope that some of the ARC members will consider making the trip and also that they will circulate information on our conference plan among their own memberships.” For more information on AARDA’s 2014 AGM and Conference, please contact Ian Hope at 780-478-5820 or admin@aarda.com.

Vortex to carry Green Car in North America Vortex De-pollution and Recycling Equipment have announced that they are now North America’s official distributors of the Green Car De-pollution System. Nigel Dove, CEO of Vortex, feels this is a huge step forward for the company and its partners. “Everyone in the vehicle processing business has an idea of the system they prefer for de-polluting a vehicle at its recycling stage. For the first time ever, our customers now have the freedom to choose the system they prefer and can mix and match elements of the Vortex and

Green Car De-pollution systems,” says Dove. “We are the only company in the world to offer both drill and punch solutions.” Vortex’s U.S. President, Willem Geyer, believes this move will put Vortex at the forefront of the industry. “Green Car equipment is built to a higher engineering tolerance than competing drill systems and therefore doesn’t require the repair and maintenance that competitors systems suffer,” says Geyer. For more information on Vortex, please visit VortexDepollution.com.

Tire Take Back Days help recyclers to build their communities By Mike Davey

Old tires are unsightly and pose serious risks for both human health and the environment. For the last several years, Ontario Tire Stewardship has worked in conjunction with the Ontario Automotive Recyclers Association (OARA) to ensure that old tires are collected and disposed of properly. The collected tires are then recycled and turned into a number of different consumer products. It’s a winning solution that cleans up communities and provides industry with raw materials. However, there is another benefit to Tire Take Back Days, that of community grants. OTS launched the first community grant on May 30, 2011 as a way to encourage Ontario communities and organizations to think green when planning their projects; build green by using recycled tire products; and grow green by using products made by Ontario recyclers and manufacturers. The program awards eligible communities and organizations grants toward the purchase and installation of recycled rubber products. Since the grant’s inception, it has benefited numerous communities across Ontario through projects such as playgrounds, community

sidewalks and roofing retrofits. Recently, 4,000 sq. ft. of ProFit athletic flooring was installed at the Stirling and District Community Centre in Stirling-Rawdon, Ont. The new flooring was manufactured by National Rubber Technologies and would cost approximately $15,000 if purchased at retail prices. Greg Woodbeck of Woodbeck Auto Parts selected the upgrade for the local arena as the Community Prize from the 2012 Tire Take Back event that saw his company generate the most tire donations. “I had no idea the impact of winning the OTS Community Prize would have for our community. We were fortunate enough to outfit our arena with new athletic flooring for the entire lobby and dressing room area,” says Woodbeck. “The Stirling and District Community Centre is a hub for our community through hockey and figure skating. Because of this, I have been happy to receive so many positive comments from people on behalf of Woodbeck Auto Parts, OARA and OTS.” The next Tire Take Back Days event is scheduled for May 26 to 31, 2014. Ontario Tire Stewardship is once again offering $15,000 in tire derived materials to the community that generates the most tires.

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trialbyfire Disaster can show you just how much others care. By David Gold

art of my role in writing for Collision Repair magazine is to help bring a better awareness of the auto recycling industry to the collision repair world and to all stakeholders in our collective industry. I have broached many topics and have always tried to show our willingness to work with your industry. This sentiment of mutual support is something that surprises many collision repairers about auto recyclers. Certainly it is well known that we work together and buy and sell parts from each other to satisfy our customers, but in reality we must all be staunch competitors right? The reality is that we view the new OEMs as competitors and each other as allies. Never has this been truer for me than in the past week. Our company suffered a pretty major fire on March 3. Naturally no company is prepared for an emergency of this nature and I was certainly consumed with many thoughts about how we would go on without our production, warehouse, QC,

and distribution/shipping departmental buildings, as they were all a total loss. By 7 a.m. I had already received numerous texts, e-mails, and phone calls offering support. At 6:27 a.m. I received a text from Michael Carcone of Carcone’s Auto Recycling asking what he and his company could do to help us. He offered us the use of his location as a pick-up and drop-off point for our shipments until we were able to better handle incoming deliveries and get our physical capabilities sorted out. We all know Michael Carcone is a class act. For him to reach out to us certainly means a lot to me personally and it speaks volumes as to the integrity and the quality of the companies that are represented under the OARA banner. By 10 a.m., Dominic Vetere sent me a text message offering advice as he had a fire similar to ours 11 years ago. He expressed his concern and offered up some first hand advice about what we could focus on during this difficult time. He said to “be cool, it all works out.” These words of sup-

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port helped me get through this ordeal. I could see there is a light at the end of the tunnel. The world of business is changing dramatically and many industries have recognized they need each other to further the advancement in their sector. I have seen great examples of that in recent years and surely this collaboration will continue in the future. We know we are stronger together and

Salvage has always said, “If you give a little, you get a little. But if you give a lot, you get a lot.” Rachel’s acknowledgement that you have to share information and work with your peers is what makes this industry great and is why so many of us love what we do every day. That is reward enough, more so than any monetary compensation. If you love what you do every day, that is priceless.

the world of business is changing dramatically and many industries have recognized they need each other. that is the best way to be successful. Auto recyclers regularly reach out to each other for help and the extent with which we go out of our way to help each other is second to none. I literally had friends from California to Atlanta to Australia wanting to help and some of them were borderline upset that I didn’t take them up on their offers to fly to Toronto, just to give any type of support that may have been required. We are an industry that continually has to be resourceful to stay in business and as one of my close friends Rachel Whetstone from Allied Auto

I wanted to take this opportunity to thank everyone who reached out to me and our company with their good wishes. Auto recyclers and all those in our collective industry have always shown me how genuinely concerned they are for each other. You should all be proud of yourselves. CRM David Gold is the co-owner of Standard Auto Wreckers, an auto recycler with locations in Toronto, Ottawa and Niagara Falls, New York. He can be reached by phone at 416-286-8686 or via e-mail at david@standardautowreckers.com.

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Classactions U.S. repairers and insurers are heading to court. By Mike Davey

here are two class action suits going on in the U.S. right now that bear watching for collision repairers, and there are indications that more will follow. The first suit was filed by attorney John Eaves Jr. on Jan. 7, 2014 on behalf of 21 collision repair facilities in Mississippi. The suit names various insurance companies as defendants, including State Farm, Progressive, Allstate, Nationwide and GEICO. The second suit, filed in Florida by Brent Geohagan, is similar, but adapted to that state and with a modified list of defendants. Eaves has stated publicly that the complaint is currently being modified for use

Decree. This goes back to 1963, when the U.S. Justice Department settled a class action suit that it brought against associations representing over 200 insurance companies. In this case, the terms included refraining from setting prices and steering. At the time, the DOJ alleged that a number of practices violated the Sherman Act, the U.S. antitrust legislation. By signing the Consent Decree, the three insurance associations settled out of court. One issue with using the Consent Decree is that despite being major players both at the time and currently, some insurance companies are simply not on

canadian courts are under no obligation to follow U.S. Precedent. in other states, with the end goal to have similar suits filed in all 50 U.S. states. The Mississippi complaint alleges that “the defendants have engaged in an ongoing, concerted and intentional course of action and conduct with State Farm acting as the spearhead to improperly and illegally control and depress automobile damage repair costs.” The suit also states that the defendants “have engaged in an ongoing pattern and practice of coercion and implied threats to the pecuniary health of the individual plaintiff businesses in order to force compliance with unreasonable and onerous concessions.” Other specific allegations made in the complaint include suppression of labour rates, repair and material costs, steering and tortiuos interference. That last one refers to when someone intentionally damages the plaintiff ’s contractual or other business relationships. Further, the complaint alleges that the defendants have violated the Consent

the list of signatories. State Farm isn’t, for example. Neither is GEICO. Courts in Mississippi and Florida may decide it applies to them, but that’s not certain. Representatives of the DOJ’s antitrust division have also stated that the consent decree cannot be enforced against individual insurance companies, since they were never signatories to the decree. Again, this does not mean the suits will fail. There are other bases for the complaints lodged. What does this mean for us? That depends. Canadian courts are under no obligation to follow U.S. precedent, of course, but in certain areas of emerging law, they will often research U.S. law to see how similar cases played out. We’ll have to wait and see what happens. CRM

66 collision Repair collisionrepairmag.com

Mike Davey is the editor of Collision Repair magazine. He can be reached at 905-3700101 or via email at editor@ collisionrepairmag.com.

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