Collision Repair 13#6, December 2014 by Media Matters

STATE OF THE INDUSTRY: CANADA VS. US

FORWARD THINKING

TECH & TRENDS

CSN Conference puts customer service in focus.

I-CAR rolls out new course for 2015.

TRISTAGE

Extra steps mean extra time.

First CHOICE

Relationships are the key for Chris and Margot Birecki of Carrossier ProColor Montreal Ouest. CRM SIVE: EXCLU TIVE EXECU VISION

Volume 13, Number 6

PLUS

Anthony Giagnacovo of Audatex on Big Data, Celette’s new home in Canada, and what’s hot at SEMA! l

December 2014

$4.95

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

COLLISIONREPAIRMAG.COM

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Photo by Michael Furman

CONTENTS

On The cover 41 Building blocks Chris Birecki and staff are watching Carrossier ProColor Montreal Quest grow.

Volume 13 Issue 6, December 2014

features 32 Surveys and Polls Readers on telematics, risk-taking and industry networking hotspots. 44 executive vision Anthony Giagnacovo of Audatex on Big Data and embracing predictive analytics. 47 Canada: Ahead of the curve Vincent Romans discusses Canada’s trendsetting role in the collision repair industry market. 55 Report on training I-CAR’s new tech and trends course, Centennial College increases KPIs, and Chief takes on computerized measuring.

Future-focused at the 12th annual CSN Conference.

NEWS

CCIF meets in Montreal.

08 COLLISION REPAIR 61 Towing & Recovery 63 RECYCLING

departments

Coming together at the 2014 SEMA Show in Las Vegas.

STATE OF THE INDUSTRY: CANADA VS. US

FORWARD THINKING

TECH & TRENDS

CSN Conference puts customer service in focus.

I-CAR rolls out new course for 2015.

On the Cover: Margot and Chris Birecki of Carrossier ProColor Montreal Quest. Photography by Peter Ford.

06 Publisher’s page by Darryl Simmons Sustainability. 34 Point Blank by Sam Piercey Tri-stage. 36 Prairie view by Tom Bissonnette Learning curve.

TRISTAGE

Extra steps mean extra time.

First CHOICE

Relationships are the key for Chris and Margot Birecki of Carrossier ProColor Montreal Ouest.

PLUS

Anthony Giagnacovo of Audatex on Big Data, Celette’s new home in Canada, and what’s hot at SEMA!

YOUR ONLINE SOURCE

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

COLLISIONREPAIRMAG.COM

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

38 Who’s driving? by Jay Perry Sustained success. 72 Recycling by David Gold Executive level. 74 Last word by Mike Davey Auto sexism.

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

december 2014 collision Repair 05

publisher’s page

sustainability Building today for a better tomorrow. PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com

By Darryl Simmons

’ve been thinking about sustainability a lot lately. I recently attended SEMA in Las Vegas, and took the opportunity to drop in on the AkzoNobel Sustainability Leadership Symposium. This is a big issue in the industry, but what do we really mean when we talk about sustainability? The word itself comes to our lexicon from ecology, where it refers to how biological systems remain diverse and productive. However, it’s a much bigger topic. In business, the concept of sustainability includes the environment, but it also includes broader corporate social responsibility. As a business strategy, sustainability drives growth and profitability by including issues that aren’t solely about dollars. The

Thinking about sustainability as a concept got me to thinking about the words it’s made up of: sustain and ability. That’s just a play on words, but in our industry it’s incredibly appropriate! The environment we find ourselves in has to provide certain resources, or we’ll have no choice but to go out of business. If you have no collisions, you have no business. If you have no parts or materials, you’re out of business. If you have no techs … See where I was going with that one? We need sustainability, and part of that means we need to sustain ability, the ability to successfully perform the increasingly complex tasks needed to put vehicles safely back on the road. Formal training is more important today than at any prior point in history. Training

sustainable development strikes a balance. idea is to generate the biggest possible increase in value by taking opportunities and managing the risks that arise from environmental and social developments. To achieve sustainability, you’ve got to have sustainable development, corporate social responsibility, and corporate accountability. Sustainable development strikes a balance between the need for growth and the need for environmental protection. Corporate social responsibility means looking at your past actions and seeing if you need to make good on damage, intentional or unintentional. Corporate accountability provides a legal and ethical basis for reporting on your overall societal impact, not just your financials. In short, sustainability means doing your best to make sure your company does positive things today and is therefore still around tomorrow. That’s really what it comes down to.

isn’t a nice to have, it’s a must have. This is true of those just entering our industry, it’s true of those who have 20 years of experience or more under their belts, and it’s true of those on the management side. It’s a complex world out there, and it’s becoming more complicated every year. I won’t say it’s not a numbers game, but what the numbers are measuring has changed. It’s not just about dollars. There will always be a place for those who can produce. I don’t think there’s any question about that. But I do think that those who can produce while building for the future will be the ones who own that future. It’s up to us. CRM

06 collision Repair collisionrepairmag.com

EDITORIAL DIRECTOR MIKE DAVEY editor@collisionrepairmag.com ART DIRECTOR DANIELA LUBERTO daniela@collisionrepairmag.com Assistant eDITOR MELISSA HAYES melissa@mediamatters.ca VP Industry Relations & Advertising GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com director of sales & Marketing ellen Smith (416) 312-7446 ellen@mediamatters.ca Marketing Assistant WILL JACQUES will@mediamatters.ca COLUMNISTS & CONTRIBUTORS TOM BISSONNETTE, DAVID GOLD, JAY PERRY, SAM PIERCEY, Vincent Romans

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.

CMCA AUDITED

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

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People on the move Christopher Toomey, Senior Vice President of Regional Procurement for BASF in North America, has assumed responsibility for the BASF Coatings business in North America, effective November 1, 2014. Toomey succeeds Juan Carlos Ordoñez, Christopher Toomey. S e n i o r V i c e P re s i dent. Ordoñez will move to lead the BASF Performance Materials division in Wyandotte, Michigan. Before joining BASF in 2011, Toomey worked for Cognis, where he was Vice President and General Manager of Functional Products and Vice President of Human Resources and Communications. CARSTAR Automotive Canada has appointed Bill Goodwin as new Dire c t o r o f B u s i n e s s Development. Goodwin will take on the task of leading CARSTAR’s business Bill development strateGoodwin. gies and team, while working alongside regional directors and managers across Canada. With a background in the auto glass industry, Goodwin’s experience falls in line with CARSTAR’s own expansion of glass and retail services. With over two decades spent working in the automotive and fleet management industries, the seasoned sales and management professional held past management positions with PHH Arval and Belron Canada.

Steve Leal, President of Fix Auto Canada, has announced the addition of Carl Brabander to the senior management team. Brabander will fill the role of Vice President of Marketing. Brabander brings extensive marketing experience in the insurance, advertising, and online industries, most recently with Intact Insurance, where he played a leading role in developing brand strategy and distribution channels for both Belairdirect and Grey Power. Brabander will oversee all national brand, communications, and media Carl strategies for Fix Auto Brabander. Canada, with a view to building a strong national voice to help grow awareness of Fix Auto, and support the success of company franchisees. Brabander holds an MBA in Marketing from Dalhousie University (Halifax) and a BA in Communications from McGill University (Montreal). Centennial College has invited two new industry representatives to join its Auto Body Program Advisory Committee. They are Michael Morello of Lexus Richmond Hill, and Mike Davey, Editor of Collision Repair magazine. Program advisors identify industry trends and shifts in the skills and knowledge graduates need. Committee members also assist in identifying industry resources, including guest speakers, work placement, co-op and graduate employment opportunities.

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1-866-325-2886 www.autoquip.ca 08 collision Repair collisionrepairmag.com

Ooh! Look at this rack!

Nice! But I liked the last one better.

Bigger isn’t always better, Eddie.

Remember, Ang: you like working here. Remember Ang: you like working here.

Hey, Angie! Come look at pictures of frame racks with us!

Remember, Ang: you really like working here.

Mike Davey.

GET CONNECTED!

Follow Collision Repair magazine at... facebook.com/collisionrepairmag

Keep it real.

Ordering Kia Genuine Parts is now easier with Auto PartsBridge. Our hassle-free process offers: •Kia Genuine Parts at competitive prices •Kia Genuine Electronic Parts Catalog (EPC) •Improved cycle time •More illustrations than other collision software •VIN-specific orders •One-click parts ordering Auto PartsBridge is available at no cost to body shops. So start enjoying the exceptional fit and finish of Kia Genuine Parts today. For more information, please contact Alain Daoust at adaoust@kia.ca.

would like to thank all of the CSN Collision Centres & industry partners across Canada

for a wonderful 2014 & wishes you all continued health, happiness & success in the

â&#x2C6;&#x2122; 2014 â&#x2C6;&#x2122;

news

Celette opens Canadian Rental Bank & Training Centre Celette’s decision to act as sole proprietor for the Canadian Rental Bank is based on the desire to supply its Rental Bank customers with a Rental Bank that hosts an appropriate number of fixture sets available for rental and to ensure that the newest dedicated fixture sets are available right away. The new training facility, equipped with an intimate classroom, is also available for third parties to host training courses on Celette’s collision repair equipment, and Titanium Tools & Equipment’s auto body repair equipment brands: Miracle System, Pro-Spot, and Wielander & Schill. For more information, please visit celette.com.

A few of the people on hand at the Grand Opening of Celette’s new Canadian Rental Bank & Training Centre. From left: Canadian Warehouse Supervisor, Farouk Hassen, Jennie Lenk and Bastien Dias Da Costa of Celette, and Matthew Bannister and Jon Venckus of Titanium Tools & Equipment.

Celette recently hosted the Grand Opening of its new Canadian Rental Bank & Training Centre in Vaughan, Ontario. The building has been opened in partnership with its Canadian distributor, Titanium Tools & Equipment. Beginning in February 2015, Celette plans to host quarterly training courses on its frame straightening equipment, as well as on its newly released electronic measuring system update, NAJA 3D.

The new Canadian Rental Bank should provide easier access to needed fixtures.

Bob Smart: 1953 - 2014 StudLever Combo

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12 collision Repair collisionrepairmag.com

Innovative Body Shop Tools & Equipment

It is with great regret that we must report the passing of Bob Smart of State Farm. Bob was tragically involved in a fatal motor vehicle accident on Hwy. 401 near South Stormont, Ontario on October 18. Bob was pronounced dead at the scene. His sister, Lynda Baynton, passed away a few hours later from injuries sustained in the crash. They were en route from Toronto to Montreal to celebrate the birthday of their granddaughter and niece, Chloé. Bob was well liked and highly respected both in the insurance industry and by the collision repair professionals with whom he dealt on a daily basis. Flowers to any senior home or donations in support of diabetes or heart charities are welcome. A gathering to celebrate Bob and Lynda’s lives and mourn their loss took place at Springdale Christian Reformed Church, 1466 5th Side Road, Bradford West Gwillumbury, on Saturday, November 1, 2014. The visitation took place at 11 a.m., followed by the service at 1 p.m.

news

Nominations open for Most Influential Women Awards Women’s Industry Network (WIN) has announced that nominations for the prestigious Most Influential Women Awards are now open and will be accepted through Wednesday December 31, 2014. The winners will be recognized at a Most Influential Women gala held during the 2015 WIN Educational Conference, May 4 to 6, 2015 at the Baltimore Waterfront Marriott, in Baltimore, Maryland. Nomination forms may be downloaded at thewomensindustrynetwork.ning.com/page/most-influential-women. Nominations from every segment of the industry are welcomed and WIN membership is not a requirement. The Most Influential Women Award recognizes women who have enriched the industry with their leadership, vision, and commitment to excellence. Leanne Jefferies, Director of Collision Programs with AIA Canada and a 2014 MIW Honoree says, “To be recognized as an Influential Woman by WIN was one of the highlights of my career. I am passionate about finding ways to improve the collision repair industry for all stakeholders, and I was honoured to have this recognized.” At the MIW awards gala, honourees will be presented a Tiffany’s crystal award and commemorative pin and meet the WIN Scholarship winners as part of the mentoring program. “One of the most rewarding aspects of this award is that it provides an opportunity for MIW honourees to mentor the next generation by sharing their experience and providing guidance to young women, as they transition from education to a career in collision repair,” says Jefferies. H onourees have he l d p o s i t i o n s i n e v e r y f a c e t o f t h e industry, as shop owners, body and paint technicians, managers, wholesalers, lobbyists, suppliers, insurance adjusters, consultants, educators, editors and writers, and industry association directors. “This award is not about the individuals that have the honour to receive it nor is it about male vs. female. This award is important to the collision repair industry because it says to all that are interested in a career in the automotive industry that collision repair is a sector where opportunities exist and that skill, creativity and a strong work ethic are recognized as valuable assets to the industry,” says Frederica Carter of F. Carter Events, a 2014 MIW Honoree and Co-Chair of the 2015 MIW Committee. The program’s charter aligns with WIN’s mission to enhance the role of women in the industry. For over 14 years it has recognized more than 80 women for their accomplishments and for going beyond to give back to their communities. “We are proud of the fact that MIW recipients are active and visible for years after they received the MIW award,” says Margaret Knell, Director of Corporate Administration at I-CAR, a 2001 MIW Honoree, and Co-Chair of the 2015 MIW Committee. “We recognize that, as women, we have the ability and responsibility to support each other to achieve greater heights and to nurture others in the industry at the same time.” Established by AkzoNobel, WIN acquired stewardship of the Most Influential Women program in 2013. For more information, please go to womensindustrynetwork.com.

CROMAX® MOSAICTM A basecoat line for automotive body shops doing collision work that is designed to provide dependable colour match and a durable OEM quality repair. Classic coat-flash-reflow technology allows application flexibility and promotes excellent metallic control.

For additional information about this technology please call your preferred Axalta distributor or the Axalta Customer Care Centre at 1-800-668-6945. www.cromax.ca

AN AXALTA COATING SYSTEMS BRAND The Cromax logo and Cromax® Mosaic™ are trademarks or registered trademarks of Axalta Coating Systems LLC or its affiliates, used under license by Axalta Coating Systems Canada Company. © 2014 Axalta Coating Systems Canada Company. All rights reserved.

news

Pfaff Autoworks hosts Certified Collision Open House Chris Castagna of BMW Group Canada (left), in discussion with industry stakeholders during a recent event at Pfaff Autoworks.

An educational evening hosted by Pfaff Autoworks gave attendees the chance to hold one-on-one information sessions with representatives of OE certified collision programs and key OE suppliers. The event took place at the Pfaff Autoworks facility in Vaughan, Ontario, and featured special guest speaker Mike An-

“A new generation in collision repair performance.”

derson of Collision Advice - Consulting and Training. Anderson is the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, Virginia. He is an Accredited Automotive Manager and has served in many positions over his career including seats on the Mitchell Advisory Board, MOTOR Advisory

Board, and as a member of the US-based National Auto Body Council. Anderson’s presentation focused on proper OEM repair processes and why they are critical to safe, cost-effective, and long lasting repairs. For more information on Pfaff Auto works, please visit pfaffautoworks.com.

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At Assured Automotive, we deliver on our promise to provide each policy holder with a quality collision repair. We fully understand that a positive repair experience with us, leads to a repeat customer for our Insurance and Dealer Partners. We NOW HAVE 45 LOCATIONS throughout Ontario to serve you better. Assured Automotive is a proud supporter of the Michael “Pinball” Clemons Foundation and their efforts to build hope, security, education and opportunity.

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14 collision Repair collisionrepairmag.com

Driving coating technology into the future. At DeBeer, color is at the heart of everything we do. Itâ&#x20AC;&#x2122;s what inspired us to create our advanced line of automotive coatings, and what motivates us to keep moving color technology forward. Like the bear on our label, DeBeer is always moving ahead so we can offer you the ultimate in automotive coatings. Where value meets technology. de-beer.com

P.O. Box 1461 Minneapolis, MN 55440 PH: 1.800.845.2500 refinishinfo@valspar.com valsparauto.com

news

Economical Insurance to receive AkzoNobel 2014 FIT Sustainability Award Economical Insurance is one of three North American companies selected as winners of the fifth annual AkzoNobel FIT Sustainability Award. The award recognizes and honours businesses and organizations that are actively engaged in practices that advance the concepts of sustainability. Economical Insurance is headquartered in Waterloo, Ontario, and is the only Canadian firm to make this year’s list. The other winners are GMG Envirosafe, headquarterd in Chicago,Illinois, and Select Auto Body of San Francisco, California. “We are pleased to recognize these businesses,” says Bill Orr, Communication Manager, AkzoNobel Vehicle Refinishes North America. “Sustainability is not simply an obligation, it is an opportunity to grow through the implemention of business practices that meet today’s needs for profitability, while considering societal and environmental issues. The 2014 honourees of the FIT Sustainability Award represent different facets of the collision repair industry, yet they share unique perspectives for implementing focus, vision and talent to anticipate the impact that today’s decisions will have on future generations.” Representatives from the three companies—Rocco Neglia, Economical Insurance; Joe Hayes, GMG Envirosafe; J.R. Hubbard, Selecta Auto Body—participated as panelists

New mobile sites for Sikkens, Lesonal brands AkzoNobel has launched new mobile sites for Sikkens and Lesonal. Each site delivers ways to stay updated on products, colour tools and services as well as providing quick methods to stay in touch. The sites are sikkensnamobile. com and lesonalnamobile.com. Each site places an emphasis on making the AkzoNobel wealth of resources available to collision repair professionals. Users can access product application details, related technical data sheets, images on the mobile device, manage alerts when new and specific content is published and stay on top of new product releases, and much more.

in the fourth annual AkzoNobel Sustainability Leadership Symposium at SEMA. FIT is an acronym for three key measurement criteria of the award: Focus, Innovation and Talent. This award, an industry innovation of AkzoNobel, was created in 2009 to promote the leadership role and unique contributions that the collision repair industry is making to generate a more sustainable future.

Rocco Neglia accepted the award on behalf of Economical Insurance.

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december 2014 collision Repair 17

news

Fix Auto Regional Meetings shines the spotlight on process Stakeholders in different parts of the country came together recently for Fix Auto Regional Meetings in Ontario, Alberta, and BC. Discussions around continual performance improvements were one highlight of the recent Fix Auto Ontario Regional Meeting, held at the Springhill Suites by Marriott Toronto Vaughan. The meeting was hosted by Fix Auto Ontario General Manager Daryll O’Keefe and brought together representatives from every location in the Ontario network. “Fix Auto Regionals take place twice a year, and they’re an opportunity for us to bring together all of our Strategic Partners and Fix Auto corporate leadership in one location,” says O’Keefe. “This helps Fix Auto keep ahead of industry trends, allows us to update each other on new opportunities and ideas to increase performance, and reinforces the strength of Canada’s largest collision shop franchise network.” In addition to continual performance improvement, discussions also focused on processes to further increase and streamline production. Attendees also zeroed in on aluminum repairs. This is an area that was once primarily restricted to facilities

A few of the stakeholders at the Fix Auto Ontario Regional Meeting. From left: Ken Jimmo, Fix Auto Ajax Central; Tony Corbett, Fix Auto Sarnia; and Sam Scarpelli, Fix Auto Weston.

Fix Auto franchisees in BC recently came together for their regional meeting.

performing repairs on high-end vehicles, but aluminum is seeing increased use in mass-market autos, with vehicles such as the 2015 Ford F-150 leading the charge. Speakers from Fix Auto taking the podium during the event included Guy Barbeau, VP Operations; Carl Brabander; VP Marketing, Tony Desantis, VP Sales, and Gabrielle Comtois, VP Finance. Education and discussion wasn’t limited to formal presentations. Stakeholders also had the opportunity to tour the attached Supplier Tradeshow, featuring exhibits from over 15 vendor partners. Coming together as one brand was the theme at Fix Auto’s recent BC and Alberta Regional Meetings, held at the River Rock Casino and Resort in Vancouver, and at the Sandman Hotel in Calgary. Both meetings were hosted by Fix Auto Western Canada General Manager Peter Polito, and brought together representatives from over 36 locations in the Western Canada network. “Getting together as a network and bringing in corporate leadership and guest speakers, is a great opportunity to build the strength of our network,” says Polito. “We

18 collision Repair collisionrepairmag.com

work individually with our franchisees as Strategic Partners, but getting together as a group helps raise the bar for the entire Fix Auto network, as we come together as one brand nationally and globally.” Discussions took place around operational excellence, industry trends, and new shop openings in Parksville and Williams Lake in British Columbia, as well as a massive renovation underway at the soon-to-be-opened Calgary Northeast location. Aluminum repairs were another focus for attendees, who were also given the opportunity to tour the attached Supplier Tradeshow, featuring exhibits from over 15 vendor partners. New Western Sales Manager Keith Jones, formerly with the Insurance Corporation of British Columbia (ICBC), was a popular addition to the team, providing insight and clarity around the insurance referral channel in Western Canada. Speakers from Fix Auto taking the podium during the event included corporate Vice Presidents Tony DeSantis (Sales), Guy Barbeau (Operations), Carl Brabander (Marketing), and Gabrielle Comtois (Finance). For more information on Fix Auto, please visit fixauto.com.

Make your next investment your best investment Getting into business with Fix Auto is the smartest investment you can make. Yield the dividends of 20 years of auto body experience and over 200 locations nationwide.

For more information, contact Daryll O’Keefe dokeefe@fixauto.com (905) 712-0011 THE BODY SHOP NETWORK – FIXAUTO.COM

news

Craftsman Group purchases Wedge Clamp Systems He liked the product so much, he bought the company. Bill Hatswell’s Craftsman Group of Companies has recently announced the purchase of Wedge Clamp Systems. Craftsman Group owns the Craftsman Collision chain of 36 collision repair facilities, among other ventures. “Nothing on the market compares to it for speed, accuracy and ease of operation,” says Hatswell. Despite sales to countries as far as Russia and Japan–and a recent welcome endorsement by US collision repair giant Maaco to its franchisees–Richmond, BC-based Wedge Clamp has concentrated mainly on its home market of Canada because of a lack of resources to achieve more worldwide exposure. Now thanks to its purchase by Hatswell and his Craftsman Group of Companies, Wedge Clamp is poised for a new beginning. Wedge Clamp is also the worldwide distributor of NitroHeat, a spray painting system that replaces air with heated nitrogen, designed to dramatically reduce paint consumption and drying times while delivering a more lustrous and durable finish. “The same holds for NitroHeat,” he says. “It is amazing how much money this system can save. We’ve got Wedge Clamp and NitroHeat in all our shops. I’m very excited about the global potential of both systems. We just have to get the word out.” Hatswell says the purchase is also good news for Craftsman customers. “As an industry leader committed to having the best technology, we know that both Wedge

Clamp and NitroHeat add to our advantage over other shops in terms of repair quality and vehicle finish,” says Hatswell. “Our techs and painters love working with them. And our accountants love the savings. Buying the company also means I can personally ensure the company’s long-term health, and parts and equipment supplies for our customers and shops.” Craftsman’s purchase of Wedge Clamp includes the firm’s well estabBill Hatswell, founder and President of the Craftsman Collision chain, has recently announced lished Asia headquarters in Suzhou, the purchase of Wedge Clamp Systems. China, just west of Shanghai. A model training facility showcases Wedge Clamp for visiting autobody technicians and to spur U.S. adoption of the system, acteaches them how it can maximize the speed cording to a statement from the company. and efficiency of their shops. Rodica Matei, Wedge Clamp’s newly proWedge Clamp has been in China since moted Chief Operating Officer for Canada, 2008, and opened the facility in 2012 in says she is extremely enthusiastic about conjunction with Craftsman’s first Chinese lothe ownership change. cation in the same building. “Craftsman’s connections will allow us “Car sales in China are 20 million a year, to reach way higher than we have in the but aftersales service lags far behind,” says past,” says Matei, whose 16 years at Wedge Frank Liu, Wedge Clamp’s General ManClamp were most recently as General Manager of Business Development in China. ager. “We’ve barely scratched the surface of “With body shops here now required to the American and international markets. The have alignment equipment, our recent Level vast amount of knowledge and experience II certification and widespread industry and that Craftsman brings to the table–having government acceptance make Wedge Clamp been in the autobody industry for over 37 the most obvious and efficient choice. In Suyears–will contribute greatly to our research zhou City alone there are 3000 auto repair and development of new, innovative prodshops of all levels. The demand for Wedge ucts that will help improve efficiencies in the Clamp in the emerging market is huge.” autobody industry.” Wedge Clamp will also be establishing an For further information about Wedge office and showroom in Los Angeles in 2015 Clamp, please visit wedgeclamp.com.

ARE YOU READY FOR ALUMINUM REPAIR? 2 Man Wet Mix Dust Collection System Model #: 50-183

A wetmix dust collection system is REQUIRED in order to repair Ford’s new aluminum 2015 F150 truck. A Eurovac “wet mix” dust collection system with dustless sanding tools ensure the safe, effective removal of explosive aluminum dust. These systems also eliminate the possibility of cross contamination of dusts which can lead to galvanic corrosion that will affect the structural integrity of the vehicle.

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20 collision Repair collisionrepairmag.com

Portable Fume Extraction System Model #: 70-451061

news

Ford names pro spot supplier of the year Pro Spot has been awarded Supplier of the Year by Ford Motor Company Rotunda Program. Pro Spot is an OEM approved aluminum repair equipment supplier to the Collision Repair Program for repairs on the aluminum-bodied 2015 Ford F-150. The approved equipment list includes Pro Spot Spot’s SP Pulse MIG welders, Aluminum Dent Repair Stations, Fume Extractors, and the SPR Riveter. “We would like to thank the customers that have supported us in purchasing our aluminum repair products. This means a lot to our hard-working team at Pro Spot,” says Pro Spot President Ron Olsson. “I’m overwhelmed and honoured to win this award from Ford. “We appreciate the trust in our equipment and of course, the overwhelming amount of orders we have received for the aluminum program.” With the anticipated release of 2015 F-150 mainstreaming aluminum repair, representatives of Pro Spot says the company is looking forward to continuing to design equipment for collision repair fa-

From left: Mike Berardi of Ford Motor Company, Ashley and Ron Olsson of Pro Spot, and Steve DeAngelis of Ford Motor Company.

cilities and technicians to repair vehicles back to OE standards.

F o r m o re i n f o r m a t i o n o n P ro S p o t , please visit ProSpot.com.

december 2014 collision Repair 21

news

Prochilo Brothers go the distance with Rally for Kids By Mike Davey

They say a good deed is its own reward, and that’s certainly the case when the good deed is running a car rally/scavenger hunt with a celebrity navigator. Prochilo Brothers Auto Collision recently took part in the Rally for Kids with Cancer Scavenger Cup in Toronto, in the process raising over $26,000 for children’s cancer research, treatment and care at SickKids. Sometimes described as a high-end scavenger hunt meets “Amazing Race,” the car rally features luxury vehicles moving from checkpoint-to-checkpoint to fill their goals over two days. “Each checkpoint has different activities, fun things to do with the kids,” says Domenic Ieraci of Prochilo Brothers Auto Collision. “It’s a fun day, but you really find yourself thinking a lot about what these kids are going through, and how strong they are. We heard an 11-year-old girl tell us about how she’s had cancer three times, Adam Prochilo (left) served as driver for the rally. Also shown are Matoula Charitsis and one of the kids that the event directly benefits.

The Prochilo Brothers Auto Collision sponsored vehicle, ready to roll for the Rally for Kids with Cancer Scavenger Cup. The Prochilo Brothers Auto Collision team raised over $26,000 in support of SickKids.

and how she beat it three times. You can’t help but be in awe of their courage.” The entire team came together to raise funds for the rally, with Adam Prochilo filling the role of driver. His celebrity navigator was three time NBA championship team member and sports broadcaster John Salley. Salley played for the Detroit Pistons, Miami Heat, and Toronto Raptors among other teams. In total, the rally raised over $1.2 million this year for cancer research, treatment and care in support of SickKids Foundation. The rally events have now raised over $14 million during the past seven years. “There’s so much these kids have to go through. They’re the ones we should all look up to,” says Ieraci. For more information on Prochilo Brothers Auto Collision, please visit prochilobrothers.com.

Celette Wins New Product Award at SEMA 2014 NAJA Evolution 3D Software * Over 14,200 vehicles * Precise diagnostics with control points determined from OEM-provided CAD drawings * Deviations shown in relation to length(X), width(Y) & height(Z) * 3D display allows damage to be viewed from any angle * Dual targeting guides repairs to original positioning * Direct access to updates & data storage on the Celette CLOUD * Print repair reports - before & after

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22 collision Repair collisionrepairmag.com

WE’VE GOT YOUR BACK. AND HOOD. Genuine Ford Collision Parts are a great choice for your customers, because they’re designed to meet demanding Ford proprietary engineering specifications. That means easy installation, a precise fit and long-lasting reliability. That also means your customers will experience like-new performance and get back on the road sooner. What’s more, Ford sheet metal is protected by a lifetime warranty backed by the Ford Protection Plan.* So, for quality parts and more satisfied customers, choose Genuine Ford parts, available only at your local Ford Store.

* Ford Protection Plan (“FPP”) is only available for purchasers of Ford replacement sheet metal for non-commercial cars and light trucks. FPP provides coverage (part and labour only) beyond the expiry of the standard Parts Warranty. If an FPP-eligible Ford sheet metal fails due to a defect in material that causes 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. See your local Ford Store for complete coverage details and limitations. ©2014 Ford Motor Company of Canada, Limited. All rights reserved.

news

Enterprise releases Q3 length of rental data Canada Average Length of Rental by Province Q3-2014

Length of of replacement rental has remained relatively stable in Canada over the last five years, according to information gathered by Enterprise Rent-A-Car. Canada’s average length of replacement rental (LOR) for Q3 2014 was 10.2 days, a 0.1 day decrease over the average third quarter LOR for the last five years. The data only covers private insurance provinces, excluding British Columbia, Saskatchewan, and Manitoba. The map above breaks the data down by province. Looking to the US, average length of replacement rental increased to 11 days in the third quarter of 2014, a slight increase over the average third quarter LOR for the last five years. Data gathered by Enterprise’s Automated Rental Management System (ARMS) tracks the length of time a replacement vehicle is rented to collision centre customers and is considered a proxy for vehicle repair time.

Saint-Gobain Abrasives teams up with IPG Saint-Gobain Abrasives is now the exclusive supplier of Intertape Polymer Group’s full line of American brand automotive tapes for the automotive aftermarket. “IPG has built an unparalleled reputation as a manufacturer of high-quality tapes, which are all manufactured in the United States,” says Ron Cuccia, North American Sales and Marketing Manager of Automotive Aftermarket Sales for Saint-Gobain Abrasives. “The combination of IPG’s American-brand masking tapes with our Norton comprehensive product bundle and strong sales team provides both companies’ distribution network and end-users with enhanced solutions for the automotive aftermarket. IPG’s dedication to excellence is consistent with the philosophy and objectives of Saint-Gobain Abrasives.” IPG has been supplying co-branded American/Norton tapes for several years. When inventory of these cobranded tapes is sold, sales will begin of solely American brand products by Saint-Gobain Abrasives and the Norton sales team.

24 collision Repair collisionrepairmag.com

PATHWAY TO THE FUTURE Trainingmatters.ca is the destination for accessing career training and opportunity within collision repair and associated industries. Targeted to career seekers and those already working, Trainingmatters.ca provides tools, resources, processes, connections and a comprehensive directory of courses across Canada.

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news

F-150 repair, predictive analytics among the highlights at CCIF Montreal The most recent meeting of the Canadian Collision Industry Forum (CCIF) took place September 26 at the Hilton Montreal Bonaventure in Montreal, Quebec. The meeting drew together over 200 stakeholders from across the country. CCIF Montreal began the previous evening with a networking reception on September 25, starting at 7:30 p.m. The following day featured a full agenda of presenters from across the auto claims economy. Simultaneous translation of all presenters was provided in both English and French. Larry Jefferies of CARSTAR and current chairman of CCIF opened the meeting and introduced the first speaker of the day, Larry Coan of Ford Motor Company. Coan spoke on the 2015 F-150 Collision Repair Program, including design for repairability, enhanced service information, available training courses and recommended tools and equipment. Leanne Jefferies, Director of Collision Programs for AIA Canada followed, with an update on CCIF’s involvement with the Haiti ARISE Technical Institute, a project designed to provide technical training and career opportunities to the people of Haiti. Jefferies briefly switched hats immediately after the update, staying at the podium while stepping into her role as Director of CCIF Skills Program. Jefferies provided a final report on the 2014 Skills Competitions and a look ahead to 2015. The meeting then moved from skills competitions to skills development, with Andrew Shepherd, Executive Director of I-CAR Canada, taking the podium for a presentation on I-CAR’s new courses and the importance of staying current.

Anthony Giagnacovo of Audatex.

Rodica Matei of Wedge Clamp and Cliff Riehl of Color Compass.

Warren Bennett of State Farm and Des D’Silva of Assured Automotive.

Chris Castagna, Certified Collision Repair Program Specialist at BMW Group Canada, followed with a presentation on advanced materials, examining both the materials that repairers are facing today and what the next five years might hold. After a short break for lunch, stakeholders again packed the meeting room for “Telematics: Are you in touch with our industry’s next game changer?” presented by Paul André Savoie, President & CEO of Baseline Telematics. Savoie shared his company’s story and spoke about how their technology could im-

Rick Orser of 3M and Leanne Jefferies of AIA Canada.

pact the collision repair industry in the future. Anthony Giagnacovo, Managing Director of Audatex Canada, followed Savoie, discussing the power of predictive analytics in the collision repair space. Chairman Larry Jefferies once again took to the podium to update attendees on the status of 2014 CCIF initiatives including the Business Conditions Survey and Insurance Claims Project, and provide a look ahead to what is planned for CCIF in 2015. For more information on CCIF, please visit ccif.ca.

AB Warehouse, Treschak Enterprises honoured at AkzoNobel 2014 Distributor Conference Two Canadian firms were honoured recently at AkzoNobel’s 2014 North America Distributor Conference. AB Warehouse, located in Blainville, Quebec, received the League of Excellence Award for the Canadian region, while Treschak Enterprises, located in Welland, Ontario, received the Leadership Award.

The annual Distributor Conference brings together automotive paint and supply distributors from across Canada and the US. This year’s event was held at the prestigious Ritz-Carlton Hotel Pentagon City, in Washington DC on September 21 to 24. Rallying to the “Powering Growth through Partnership” conference theme, distribu-

tors engaged in three action-packed days of workshops focusing on new business innovations and learning opportunities. Each element of the program was designed with the goal of providing attendees sustainable strategies for growing the profitability of their businesses and the collision repair centres they serve.

december 2014 collision Repair 27

news

SEMA’s 47th annual show puts focus on the changes driving the industry The 2014 SEMA Show offered industry professionals a variety of collision repair catered events, including educational seminars and training, product demonstrations, panel discussions, and networking opportunities galore. Marking its 47th year, the Specialty Equipment Market Association’s annual automotive trade show ran November 4 to 7 and was once again held at the Las Vegas Convention Center in Las Vegas, Nevada. There was much to see and do, with over 2,500 covetable gadgets and gear covering the 35,000 sq. ft. space as part of the New Products Showcase and close to 200 exhibitors set up in the North Hall’s Collision Repair and Refinish section. Live product demonstrations were also held in the area by the likes of Miller Electric Manufacturing and Eastwood Company. The Society of Collision Repair Specialists (SCRS) returned with their Repairer Driven Education Series (RDE), providing attending collision repairer community members a chance to build on their industry knowledge and skills, touching on both the technical and businessminded aspects of the ever-evolving field. Unsurprisingly, highlights of this year’s RDE roster included several courses running through the duration of the event centered around the hot topic of aluminum repair— concerning proper processes, the material’s future in the industry as well as a wealth of F-150 specific information provided by Ford. A wide range of seminars covered subjects of interest such as: the connection between vehicle design, materials and equipment, how automotive manufacturing is driving change in the industry, the differences between modern and traditional repair and the necessity to invest in training, equipment and resources, the importance of reputation management online, customer service manager training, and how to build an effective brand strategy for your collision repair shop.

From left: Mrs. Kwasny, Sabine Kwasny, Marcus Maier and Randy Letsch of SprayMax Technology.

From left: AkzoNobel District Sales Manager Sylvain Seguin, ProSpot Canada Sales and Marketing Director Art Ewing, L.J. Peters Warehouses General Manager Bill Stanzeleit, LKQ Director of PBE Operations Roland Taube, Director of CCIF skills program and AIA Canada collision programs Leanne Jefferies, CSN Collision & Glass COO Flavio Battilana, AkzoNobel Country Manager VR David Smith, PPG Canada’s Collision Business Manager Norman Angrove, PPG Director of Refinish William Shaw.

From left: Ford Damageability Engineer Larry Coan, I-CAR Marketing Communications Manager Stacey Wesselink, I-CAR Director of Industry Technical Relations Jason Bartanen.

LBL President Alfredo Longhi, Spanesi SpA Marketing Director Cristina Spanesi, Spanesi Americas Managing Director Timothy Morgan.

In addition to the offered courses were a number of panel discussions, notably Marketplace Development: How Specialization is Shifting Collision Repair Practices, employing U.S. collision repair professionals from across the U.S. to address the industry’s commitment to embracing certified collision repair programs and advancing technologies in contemporary collision repair facilities. The most anticipated addition to the SCRS

SEMA offerings proved to be the inaugural November 5 debut of the OEM Collision Repair Technology Summit—an innovative, full day agenda of panel discussions revolving around the changing industry as it directly relates to collision repair. Among the inter-industry representatives in attendance were OEMS—such as Ford, GM, BMW, Toyota, Mercedes, Audi, and Tesla—equipment suppliers, training facilitators, shop owners and engineers. With the 2014 event wrapped, next year’s SEMA Show is currently scheduled to return to the Las Vegas, Nevada venue, kicking off on November 3, 2015. To learn more, visit semashow.com.

Loyalist College student Dillon Storey, Celette Marketing Director Jennie Lenk.

28 collision Repair collisionrepairmag.com

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FACTS & FIGURES

Survey Says ... Readers on telematics, risk-taking, and the best places for industry networking. By Mike Davey

very entrepreneur and business owner is a risk taker on some level. The risks may be carefully calculated and weighed, but they’re taken nevertheless. One of our recent surveys asked readers if they considered themselves risk takers. The responses were overwhelmingly in favour of the idea that you can’t win if you’re not prepared to lose. A bare four percent of respondents simply answered “No.” Oddly enough, the numbers scale down fairly smoothly. As the risk they were comfortable with decreased in the answers, so did the absolute numbers of respondents. We also asked our readers to tell us how familiar they are with telematics. The single most popular answer was “What are telematics?” at 32 percent. However, 11 percent chose “Very familiar. I could probably give a course on it.” Most fall between these two extremes. In a nutshell, telematics is the long-distance transmission of computerized information. In our industry, it’s usually referred when discussing topics such as vehicle connectivity. At this time, telematics is more of a concern for those on the insurance side. However, it may impact vehicle repair at some point. In theory, telematics may one day provide you with the same sort of “black box” data that flight recorders on airplanes carry, such as velocity, acceleration, heading, and other information. Combine this data with a robust predictive estimating platform, and it may be possible to predict what repair procedures and parts will be needed to fix a vehicle before it even comes in the door. Most of the respondents to a survey on towing and recovery indicated that they were not directly involved in the business (52 percent). However, the minority of respondents that do own one or more tow trucks is significant, at 13 percent. We also asked readers for the best places to network. Network or franchise meetings and the Canadian Collision Industry Forum topped the list, both taking 27 percent of the total. Of 32 collision Repair collisionrepairmag.com

Do you consider yourself a risk taker?

4% 20% 44%

Yes! You'll never win if you're not prepared to risk losing. Yes. I take risks when the reward is great enough.

32%

Yes, but only when risk is unavoidable. No.

How familiar are you with telematics?

5% 11% 32%

What are telematics? Pretty familiar, at least with what's been discussed so far. I've heard the term, but I'm not exactly sure what it means. Very familiar. I could probably give a course on it. Somewhat familiar. There's always more to learn.

26% 26%

FACTS & FIGURES

Where’s the best place to network?

6% 7% Network or franchise meetings. CCIF.

Are you involved in the towing and recovery business?

NACE.

13%

52%

No.

Performance groups. Other.

13%

27%

13%

27%

We know local towers, but we don't have anything formal in place.

SEMA.

Yes, we own one or more tow trucks.

Online.

Yes, we have a partnership with a towing company.

course, network or franchise meetings may be good places to network within an organization, but they generally don’t let independents just wander in and start making contacts. Performance groups are a traditional way to network and conference with peers, but they only drew 13 percent of the total. Those who prefer to network online are definitely in the minority, with only six percent of the total. Despite the low numbers, we suspect that this is an area that will only grow in the future.

26%

We’d like to discuss one final survey before we close things off for this issue. We asked “Will we see more OE certification programs?” You may have noticed that there is no graph to illustrate this question. This is because the most popular answer was “OE certification programs will grow until there is one for every marque.” In fact, this answer was so popular that showing you the other answers would be pointless. For Canada’s collision repairers, it’s not a question of if the OEs will continue to roll out these programs, but when. CRM

Committed to being there for customers, communities and cars when they need us. With our Give, Green & Growth Certification, CARSTAR locations across Canada are leaders in sustainability, in the industry and in the communities they serve.

carstar.ca december 2014 collision Repair 33

point blank with piercey

tri-stage Translucent colours add complexity to the job.

OEM Approved: The Importance of Approved Fixtures

It’s impossible to underestimate the importance of manufacturer approved fixture benches when it comes to repairing structural damage of modern, technologically advanced automobiles. “If you perform a structural repair on a BMW or several of the other premium brands using anything but manufacturer approved fixtures, you could potentially be breaking the vehicle,” says Chris Castagna of BMW Group Canada. BMW and other high-end manufacturers often use a blend of material types throughout the vehicle’s structure. This approach is also making its way into mass-market automobiles. It seems likely that we’ll see more of this technique in the future. The use of blended materials means a single area of the vehicle may include cast aluminum, high strength steel, ultra-high strength steel, thermoplastics and other materials. These all have unique characteristics, and they all react differently in a collision. “Say you’ve got a damaged B pillar. That damage might range across nine different types of material, and they may be joined together in different ways. Just that one component may use laser welds, spot welds, rivets, and adhesives.” If you put that damage on a non-approved frame machine, you may not be properly securing the pull. All the metals are being pulled in the same direction at the same time, but the way they react is wildly different. OEM approved fixture systems secure the vehicle properly. Essentially they recreate the original pick-up points used in the factory, returning the car to its original condition. Non-approved methods may compromise safety to a threatening degree. For example, an improperly repaired frame rail may not react properly under the impact of a subsequent collision, possibly compromising the vehicle’s advanced safety systems. Considering the risks, improper repairs must be avoided at all costs. The only safe way to repair vehicles is by OEM trained technicians using OEM approved equipment, following OEM approved procedures and the proper remuneration for the facilities that perform them. This message brought to you by BMW.

By Sam Piercey

et’s look at the new paint technolog y coming out to match the OE manufacturers. You can look at paint in auto repair using the Three-T concept: Translucent Tri-Coats, Three Stage, and Two Stage. This boils down to more work, longer paint times, and higher costs. That’s not necessarily bad, as long as you’re getting paid!

and also the time and material that goes into ensuring proper colour match. When vehicles come out of the plant, or are off loaded at the port of entry, paint company reps are on site matching the 2015s. These “Colour Shaders” are also at the OEM dealerships constantly matching and tracking variances; and on top of that paint reps are constantly submitting parts to be matched. Plus

Simple stuff: colour is a problem in the aftermarket industry. Painters need time for match and blend, and for spray-out cards. If you don’t do a spray-out card on some of these translucent and tri-coat colour, and build a library of difficult colours, you are going to have the struggle of your life. Your painters will eventually burn up or burn out. When was the last time you sat down to take a look at prices of paint, and labour on tri-coats, three stage and two stage when calculating the paint and material times? It shows approximately 15 percent mark up and it needs to be at least 25 percent! If you are not making the 25 percent per cent on the calculation in the final estimate, you might as well give the customer the car in primer because that’s probably close to the paint material time coming out of your estimate times. Tri-stage uses at least 25 percent more material than two stage. You need those spray-out cards. There is no room for butt matching. I encourage you to reach out to your partners and explain that these colours can’t be butt matched, but rather need a let down panel to ensure a 90 percent colour match. Ask them to define the difference in three stage vs. translucent

different substrates are enhancing and changing the colours too. Simple stuff: colour is a problem in the aftermarket industry. Between pearls, metallic flip/flop, three stage and translucent colours, it is taking more time to match these colours! The tri-coat process has been around for some time, but now we are dealing with translucent tri-coat colour. The OEMs are producing translucent colours so you can see right down through to the primer/sealer. This means you need to make sure your greymatic shades of primer/sealer are accurate. Here are the steps: • • • • •

OEM Substrate G6 Sealer Metallic Ground Coat Layer Tinted Mid Coat Clear Layer Topcoat Clear Layer

That’s why there is extra time and money involved. 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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prairie view

learningcurve Aluminum? Try your hand at ultra high strength steel repair! By Tom Bissonnette

he industry is all abuzz about the soon to be released Ford F-150 and the challenges that will come with aluminum repairs, but I think we’re overlooking the even bigger challenges we’ll face with the new ultra high strength steel. We just finished repairing a new 2014 Acura MDX that was T-boned on the right side and I can say that it stretched us to the limits of our technology and skill sets. The ultra-high strength steel (1500 mpa hot stamped) is amazing stuff: • It doesn’t bend, it cracks! • You absolutely cannot weld it with traditional MIG welding. • It cannot be repaired or sectioned Before we started the repair we printed the manufacturer’s repair procedures—a whopping 32 pages of technobabble. My technician took the printout home and spent

hours reading and studying the information before cutting or pulling anything. Once we had a repair plan we did what structural pulls we could and proceeded to remove the damaged panels. A Boron steel spot weld drill lasted about six holes! We ended up using a belt sander bit and ground out all the spot welds. Tedious and time consuming. The inner rocker was salvageable but the edge needed to be straightened to accommodate the new outer panels. Not an easy feat, as we had to pull it a whopping 4 mils and dolly the mating edge. You could not move this metal with a large hammer. It took constant pressure from a 5 ton pulling tower, a jack to hold the floor in place and a technician performing stress release on the metal. Fortunately the metal did not crack and we were able to salvage the original panel. If not, off comes the quarter panel and a bunch more welding on the floor and inner structure.

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prairie view

To install the new panels we had to assemble them with clamps on the vehicle so that we had the correct positioning, then we spot welded a few spots to hold the assembly together. From there we removed the assembly and spot welded the outer and inner panels together off of the vehicle. This assembly was then positioned back on the vehicle then spot welded into place.

When it was all done I can assure you that we did not make good time on this job but we learned plenty. We are confident that the next job will go much smoother and quicker. My concern is that we have spent a lot of time and money keeping current with equipment and training yet it is not an exaggeration to say that we were pushed to the max of our capabilities. If we

i think we’re overlooking the even bigger struggles we’ll face with the new ultra high strength steel. There were 12 spots that the spot welder could not reach so we had to MIG weld those areas with either a special wire available from Acura (a 4 lb. roll is $375.00) or we could MIG braze the areas with a pulse welder. Fortunately we have a Pro Spot SP5 welder that has those capabilities and MIG brazing available. The final touch was to weld the area where we spliced the new exterior panels to meet the existing panels. Again we used MIG brazing with the pulse welder and got a very good result. IMP-0187 Ad_largest selection_hlf pg_print.pdf

are one of the better equipped and trained shops what would have happened to this vehicle if it went somewhere that did not have access to all the information and technology? CRM

Tom Bissonnette is the owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, SK. He can be reached at tom@parrautobody.com. 1

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december 2014 collision Repair 37

who’s driving?

Sustainedsuccess Fundamental practices are key in building your business.

By Jay Perry

ustainability is one of the biggest challenges in the business world. While the word is most commonly used to refer to the environment, I would like to examine the subject from the business process perspective. We have all started things that we end up abandoning over time, like a hobby or a health practice. In business, I have found that it’s the little things people tend to forget, and these are the very things that brought them success in the first place. I was speaking with a client recently who has succumbed to the pressure of increased business and the strain on his time the extra work has created until

are utilizing the aforementioned 3C’s—Complete, Clear and Concise—very little friction results within the organization. It becomes easy to pick up where someone has left off. When we get busy or complacent, we adopt an attitude of “Things are going well, I don’t need to do as much” or, “I am so busy, I don’t have time to fully document the file.” The results of course, are those incomplete, improperly documented files from which questions arise. These questions must have answers, and this time-consuming research eats into your day. You’re left with the tedious task of going back over invoices, pictures and notes to try and appease those queries. This is how we sabotage ourselves and lose

you give up on those small, efficient practices, thinking you are good as gold—then disaster hits. his staff expands to handle the growth. I told him it was the little things that set the stage for the increase in business and will help sustain the new level of business flow. These small things are the SOPs put in place that seem to get in the way of pushing the higher production through the business. In every example throughout my career of clients swapping the fundamentals for “shortcuts,” I can honestly say it inevitably meets with failure and a breakdown of service or quality levels. In some ways it could be looked at as an illusion that this new level is the “arrived” status. As you have heard before, in business there is no arrived status and certainly no time to put our feet up on the desk. I am not saying you can’t celebrate successes. You must. It is just that we must not leave behind those practices that helped us in reaching that high level of achievement. I’ve discussed fundamentals in past columns, outlining regular communication through organized meetings with an agenda, continuing education, proper documentation, leading edge estimate practices and so on. I will now illustrate how this relaxing of fundamentals creeps in, making sustainability impossible with the subject of documentation. When files are documented well with photos and notes that 38 collision Repair collisionrepairmag.com

the sustainability. You give up on those small, efficient practices, thinking you are good as gold—then disaster hits. Inefficiencies creep back into our day and the hours become longer, the energy goes lower and frustration rises. This is, of course, all very easily avoidable. Strong commitment is required, and even when your time is stretched due to more work, you can recover quicker and easier than ever before if you stay on track. One fundamental principle of mine, something most people haven’t realized, is the direct connection between inefficiency and frustration. It’s no coincidence that when inefficiency rises, so does frustration. Efficiency, as you may have guessed, leads to satisfaction. If you desire greater satisfaction, you must raise efficiency levels. This is accomplished by faithfully taking the time to do the small things that make sustainability possible. That’s how you take charge and remain 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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PROFILES OF SUCCESS Cap

Brick by Brick By Mike Davey

Christopher and Margot Birecki and the staff at Carrossier ProColor Montreal Ouest have built by always moving forward.

Above: Christopher Birecki. Inset: Margot Birecki. december 2014 collision Repair 41

PROFILES OF SUCCESS

here are advantages to starting small. You can concentrate on a particular focus, and you may not have to depend on anyone other than yourself. That was the case for Krzysztof (Christopher) and Margot Birecki, owners of Carrossier ProColor Montreal Ouest. Located at 11A Westminster South in Montreal, Quebec, the facility currently occupies approximately 30,000 sq. ft. in a threestorey building completely owned by the company.

It’s a large operation, employing a staff of about 20 people and producing more than $3.5 million worth of business a year. But it wasn’t always this way. In fact, there was a time when almost nothing about the business was the same: it wasn’t part of Carrossier ProColor, it wasn’t in the current building, and it wasn’t even a collision repair facility. It was a car wash. “Margot and I needed to support our kids, so we bought a small car wash in Lasalle,” says Birecki. “Soon I started partnering with some of the local dealerships, and doing the detailing on their cars.” Birecki worked as both a ship mechanic and later a truck mechanic after immigrating from his native Poland before making the decision to go into business for himself. There’s no question that it was a big step, and the new business didn’t have

much to work with at first. One thing it did have were owners who believed very strongly in customer service and running an ethical business. “It’s important to look in the mirror and feel that you’re needed,” says Birecki. “So many people come in, and you recognize them by name, and they know you. Customer service isn’t just good business, it’s my motive and my engine.” It wasn’t long before the Bireckis expanded beyond car wash and detailing. Soon the small facility was offering paint touch-ups and repairing minor dings. A body technician and a painter were added to the staff, and within a year the business had moved into the building it currently occupies. “We grew up gradually, one day after another,” says Birecki. “Building a business

42 collision Repair collisionrepairmag.com

is just like building a wall. Put one brick down after another.” When the facility originally moved into the building, it only occupied the second floor. Today, the business has expanded significantly, and occupies all three floors of the building. Today, Carrossier ProColor Montreal Ouest occupies every floor and has continued to expand, or as Birecki might put it , they’ve put more bricks in the wall. In addition to collision repair and refinishing, the company also offers full mechanic service as part of the Unipro banner. Birecki and his staff are highly experienced when it comes to adding services. After all, it’s how the business has grown from a car wash into a full-service automotive repair and service centre. However, every step of growth has its own challenges.

PROFILES OF SUCCESS

Below: Quality and customer service are important to every member of the team. They’re aided by some of the latest in equipment. Opposite page: The team at Carrossier ProColor Montreal Ouest.

The business has grown from a car wash into a full-service automotive repair and service centre. However, every step of growth has its own challenges.

“We train our mechanical section to be versatile,” says Birecki. “There are basically two seasons when it comes to auto service: pre-winter and post-winter. Those times we’re very busy, but the volume quickly goes down. You need to rely on regular maintenance and emergency repairs for breakdowns.” Birecki and his team are dedicated to offering efficient and timely service, so it’s vital that the mechanical section is fully staffed during the busy periods. But what’s a business to do when those hands aren’t needed? The answer for some businesses is simply to lay off those employees. The Bireckis follows a different path. “We don’t lay off people. We train some of the techs to work in the body shop section instead. Mechanics are trained on assembly and disassembly,

how to apply compounds and buffing, and other tasks,” says Birecki. “We keep people working instead of sending them to the unemployment office.” It’s a strategy that has a number of benefits. For one thing, there’s less need to search for replacement staff when the mechanical business picks up again. For another, knowing their position is secure means employees are more loyal. There’s little reason to search for a new job when you’re satisfied with your current one. There’s also the increased productivity. “If you can increase the number of production hours, you’re automatically increasing your productivity, and we need very high productivity during the busy season to keep up with the flow of work,” says Birecki. High levels of production need a lot of logistical management. That’s Birecki’s

main role; making sure that production keeps flowing. The facility is covered by cameras and hands-free speakers, so Birecki can talk to his staff on every floor. He can be in instant communication with his staff any time they encounter a problem. Even when those problems aren’t work related, Birecki gives his time. “Don’t just be the boss. Be a human,” he says. “Your staff have a lot of things going on in their lives, and you have to learn how to help them be successful in life. Do that, and they’ll be successful at work too.” It’s a strategy that gets results. Birecki has had the same group of people working for him for more than 15 years. The number of staff has grown as the business has expanded, but the recruitment philosophy hasn’t changed. “Take a young guy on for a placement, and see if he loves the job,” says Birecki. “You need to love this job to do it well. You can’t do it just for a paycheque.” It may be that passion that has led to a string of awards and acknowledgements for Carrossier ProColor Montreal Ouest. The facility was the Bronze winner of the Carrossier ProColor Insurer’s Choice Award for Western Quebec in two different years. Winners are determined by a compilation of survey responses received from our insurance partners. If there’s an environmental certification available, then Carrossier ProColor Montreal Ouest has it, including recognition under Quebec’s Green Key program. When it comes to equipment, Birecki believes Carrossier ProColor Montreal Ouest is one of the best equipped facilities in the city. He says they’ve increased budgets for both equipment and training every year since they started operations. However, it’s likely the recommendations from the Canadian Automobile Association (CAA) of which the Bireckis are the most proud. The facility is CAA recommended for both collision repair and mechanical service and repair. “You have to have ver y high standards to get that recommendation,” says Birecki. “Every six months CAA comes in and makes sure you’re hitting all of the targets. You have to be constantly on top.” CRM december 2014 collision Repair 43

EXECUTIVE VISION

Anthony Giagnacovo of Audatex Canada on Big Data, predictive analytics, and why it’s important to embrace them. By Mike Davey

xecutive Vision focuses on discussions with key players in the auto claims economy and the auto industry, their views on the present industry and their vision for the future. In this issue, our guest is Anthony Giagnacovo of Audatex Canada. Audatex provides software solutions to collision repairers, insurers, and other segments of the claims economy.

Anthony Giagnacovo of Audatex Canada.

44 collision Repair collisionrepairmag.com

Collision Repair magazine: Hello Anthony. Thanks for joining us. It’s no secret that the collision repair industry has a number of challenges. In your opinion, what are the three most critical issues we’re facing as an industry? Anthony Giagnacovo: First, ever increasing customer demands—new communication channels, social media, mobility everywhere, all the time. Second, being too slow to leverage Big Data—it’s everywhere around us, and with telematics and the Internet of Things, the collision repair industry will be overrun with data and our job is to capture, categorize and derive insights to enhance workflows and to improve the flow of information to all constituents. Three, enhanced technology and sophistication of vehicles, which is complicating repair. New materials mean more complex repairs, at higher costs, requiring more technologically and financially savvy technicians to determine the best course for the customer and insurance carrier.

EXECUTIVE VISION

CRM: What is the best way for a shop to deal with Big Data? AG: At its core, our industry needs to become more information-aware and information-driven—causing an industry transformation where computers, databases, and prescriptive guiding systems like Audatex are facilitating more efficient workflows, informing repair processes, and supporting insurance decisions with better data and analytics. While the expertise, knowledge, and skills of technicians will always be integral to safe high quality repairs, internet enabled expert systems are increasingly necessary to support the collision repair process. Furthermore, customer and insurance partner expectations are increasing. At Audatex, for example, we are no longer just the provider of an estimating system; we’ve built a platform that connects all the constituents—insurance carriers, repair shops, dealers and consumers through the flow of information, and connectivity through the devices we all use day to day. CRM: You presented on predictive analytics at the CCIF meeting in Montreal and drew a strong response. In a nutshell, could you tell us what predictive analytics is? AG: Simply put, predictive analytics is a systematic Big Data approach to making better use of data to guide decision making. This is a rapidly evolving topic, but in my opinion it’s about the role data will play in the future. Beyond the simple collection of data, the idea is to explore “what if scenarios” with math and statistics. Rather than looking at an eye chart of numbers, this is about taking a lot of data, and turning it into a score to help you make decisions. You look at a mountain of data, and you apply a predictive analytics system to see if that data can help you predict a decision that used to be difficult. This can be used to create a scoring mechanism, which can help to guide you to better decisions. These approaches are what enable Google and Amazon, and other modern internet companies to predict what you would like to buy. We feel that similar techniques can be applied in the collision industry to help you make better decisions, which used to solely be the domain of experts making judgment calls. Audatex’s first forays into this area have been in facilitating and recommending

decisions on repair versus replace for some collision repair parts. Our expectation is that we will be able to do much more in coming years. With the advent of telematics in the vehicle, it may be possible to do things like alerting you that your vehicle may need a specific repair before it becomes an issue.

“

revenues, profitability and customer satisfaction for their businesses. In the short term, these technologies appear to be costs, but in reality, they are savings and revenue enablers. CRM: What do you think will be an area of growth for collision repair facilities?

“Data insights, analytics and shop systems, processes and workflows are all about helping repair shops focus on what they do best—repair vehicles.” – Anthony Giagnacovo

CRM: How can predictive analytics benefit the collision industry at the shop level? AG: Audatex through Solera has access to millions of data points, which means we can deliver highly actionable insights that result in process improvements across the entire repair lifecycle. Audatex data makes the repair vs replace decision much easier to make, minimizes the number of handoffs, and reduces the variability that is often introduced by judgment decisions within the estimating process. Predictive modeling can deliver a distinct advantage in terms of accuracy and speed. Ultimately, this translates in greater consistency, better service, and happy customers. CRM: In your view, what are the most important steps for a shop to take to secure longevity? AG: Embrace change and technology. D at a i n s i g ht s , a n a l y t i c s a n d s h o p systems, processes and workflows are all about helping repair shops focus on what they do best—repair vehicles. Inventory management, parts negotiation, procurement—these are not core competencies of repair shops—and they should leverage the systems to take cost out of the equation and create the streamlined efficiencies that will drive more repair

AG: As vehicles continue to become more complicated, it will be important for repair facilities to evolve with this complexity. Software systems can help, but the collision repair facilities that will remain viable and competitive will be the ones that can handle the modern materials of vehicle manufacturing (aluminum, carbon fibre, etc), safely repair collision avoidance systems, accommodate new vehicle technologies associated with hybrids, and most importantly change with the times to meet the expectation of the next generation of customers. CRM: What’s the biggest change we can expect in the next few years? AG: The amount of data that is out there, and those businesses that embrace and leverage it into actionable information versus those that don’t. Those that don’t run the risk of falling behind. We are no longer being measured against our peers but against all technology that is out there. I recently was asked why can’t I get my car repair details cost, status, and parts that were procured online in one single place. The answer is that you should be able to! The technology that can do that for us is already out there, we just have to move more quickly to adopt it! CRM December 2014 collision Repair 45

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INDUSTRY REPORT

Ahead of the Curve Trends in Canada often play out in the US a few years later. By Vincent Romans

Vincent Romans (right) served as panel moderator during a recent CCIF meeting. The panel consisted of Stephen Applebaum, Insurance Claims Solutions; Michael Macaluso, CARSTAR Automotive Canada; and Tony Canade, Assured Automotive.

ompared with the US, Canada’s collision repair industry evolution over the last 34 years has many similarities with respect to industr ychanging events that altered the collision repair markets. These changes frequently appeared in the Canadian market typically three to five years earlier than they did in the US, although in most cases the US market eventually did experience them. Some of the more notable differences and similarities over this 30-year span of auto physical damage evolution between Canada and the US include: • Some of Canada’s most prominent MSOs are the franchise and banner organizations which started their dominant growth and development earlier as compared with the US franchisors. Today, they compete head on with the top independent and dealer MSOs. • The top ten property and casualty insurers in Canada are more consolidated with 76.2 percent of the auto insurance market share versus the US auto in-

surance carriers with 70.6 percent. • Private equity investment in the US collision repair industry is very active and aggressive today with little to no private equity investment in the Canadian collision repair marketplace heretofore. • Canadian private equity and pension fund investors ONCAP and Omers have invested and placed their bets consecutively on the largest indepen-

dent MSO in the US, Caliber. • LKQ remains the dominant alternative parts supplier in both the U.S. and Canada. • The parts industry in the US continues to reflect a more fragmented segment than Canada’s with many more disparate providers all competing for a broader customer base and greater market share in parts december 2014 collision Repair 47

INDUSTRY REPORT

sourcing, procurement, and management landscape. Boyd/Gerber remains the only publicly-traded collision repair and auto glass business in either country There are many similar and simultaneous current and future market trends and dynamics that are in play which are expected to influence and impact both countries concurrently over the near term. They include but are not limited to telematics, crash avoidance technology, semi-autonomous driving vehicles, demographic attitudes toward vehicle ownership and driving, big data and predictive analytics, CAFE standards, changing vehicle materials, and technician resource availability. As close geographic neighbors and part of the broader continent of North America, the lines of clear demarcation are getting thinner and fading quickly when it comes to the broader auto physical damage transborder economy. There are approximately 30 different auto physical damage organizations that are either headquartered in or conduct business in both countries. These companies are just one example of how Canada and the US are tethered together as transborder trading countries. The Canadian franchise, banner, multiple-lo cation network segments in Canada represent a significant 48.8 percent share of the private insurer repairable vehicle market, quite different than the U.S. where the franchise segment represents only 4.8 percent of the market. When the ≥ $10 million dealer and independent MLOs are combined with the banners and franchise networks, they represent 66.7 percent of Canada’s private insurer repairable vehicle revenue. Within the top 10 ≥ $20 million MLO independent and dealer segments, including the franchise and banner network segment, there are four independents, three franchise, two banners, and one dealer organization represented. Together they repair $1.6 billion in revenue through 1,048 production locations. Within the ≥$10 million independent and dealer MLO segment, the top 10 repairers include seven independent operators and three dealers. These top 10 operators account for $387 million, or 13.8 percent of total Canadian repair revenue, through only 3.2 percent of repair locations.

Canada: Top 10 MLO/Franchise & Banner Networks (Dollars in Millions) Rank

2013

Type

2012

Collision Solutions Network

Banner

Collision Solutions Network

Fix Auto

Franchise

CarrXpert

Banner

CARSTAR

Franchise

Fix Auto

Assured Automotive

Independent

Boyd Autobody & Glass

Independent

Assured Automotive

Craftsman

Independent

Craftsman

Auto Canada

Dealer

ACG Atlantic

Independent

Maaco

Franchise

Hammer Group

Canada: Top 10 > $10M MLO (Dollars in Millions) 2013

2012

Company

Rank

Type

Assured Automotive

Independent

Boyd

Independent

Craftsman

Independent

Auto Canada

Dealer

ACG Atlantic Auto Body

Independent

Hammer Group

Independent

Gabriel

Dealer Independent

Herbert’s

Birchwood

Dealer

Kirmac

Independent

The top five franchise and banner networks represent $1.35 million in annual revenue; the largest single repair segment within Canada at 48.2 percent of the private passenger auto market and 72.2 percent market share of the ≥$10 million franchise and banner segments. • Banners - Collision Solutions Network and CarrXpert • Franchisors - CARSTAR, Fix Auto and Maaco The US collision repair market size remains approximately 10 times the Canadian market size when combining both Canada’s private and government auto insurers. Although the US has seen an increase in its consolidation within the MLO segments, Canada remains significantly more consolidated at 67 percent of the total collision repair market versus 24 percent for

48 collision Repair collisionrepairmag.com

the US. The combined revenue of $9.2 billion is 27 percent of the combined private auto insurer and consumer paid market size for Canada and the US. Within the US market, independent and dealer MLOs are the foremost business model. In Canada, the franchise and banner networks continue to dominate the market. The Franchise/Banner/MLNs in the US and Canada represent approximately the same revenue at $1,032 billion and $1.365 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 US MLO/Franchise/Banner/ MLN segment is considerably smaller at 14 percent. The $9,234 million combined MLO/ Franchise/Banner/MLN repair revenue in the US and Canada represents 27 percent

INDUSTRY REPORT

Canadian Market

2013 Revenue (millions)

2013 Locations

Total ≥ $20M

353

155

Total $10-$20M

150

Total >$10M MLO

503

237

Total Banners/Networks

1,365

926

Total >$10M MLO/ Banners/Network

1,868

1,163

TOTAL CANADA

2,800

5,500*

*Subscriber lists for Collision Repair magazine peg this number at 5,823 facilities currently offering collision services in Canada.

of the combined qualified US and Canadian collision repair market of $34,200 million. Looking forward, we expect a confluence of prevailing conditions to influence ongoing innovation, disruption, transformation and disintermediation across all auto physical damage segments within North America. By themselves, any of these individual business, market or strategic conditions would create certain risks and opportunities, but as part of an ongoing confluence of conditions, we believe the impact, at any given time, will be exponential and not just linear in their cause and effect. Here are just a few of the conditions that we see as having a higher probability to influence the North American auto physical damage ecosystem in the next 12 to 36 months. • Telematics and its growing influence on an integrated electronic claims process. • Repair segmentation including aluminum repair. • Big data and predictive analytics; recommended/suggested pricing. • Vehicle technology and material advances. • Private equity investment in various APD segments. • Crash avoidance; semi-autonomous vehbots. • Sourcing and retaining technicians. • Technical Tsunami’s impact on technician’s training requirements. • Demographic diversity, mobility and millennials.

• Parts procurement process. Final frontier or just beginning? • Digital convergence and smartphone claims reporting. • OEMs increasing influence and involvement in claims process. • OEMs certification process. • Hybrid claims solution models. • Google, Wal-Mart, Overstock.com and insurance channel redistribution. • Globalization and specifically Canada and US trans-border activity • M S O s’ g r o w i n g i n f l u e n c e a n d dominance: insurers strategically aligned, strategic preferred provider DRP contracts, executing and delivering metrics, brand value and differentiation. • Flat to downward trend in accident frequency. • Consolidation = industry structural change Because of this confluence of prevailing conditions affecting both countries, we see the North American auto physical damage market as more homogenous and porous then separate, independent or insulated from each other. CRM Note: The information presented here is excerpted from A 2013 Profile of the Evolving North American Collision Repair Marketplace, prepared by Vincent J. Romans and Mary Jane Kurowski of The Romans Group. More information is available in the full report. For more information on obtaining a copy, please visit romansgroup.com.

Trans-Border Following are some recent examples of transactions demonstrating how companies in the US and Canada are expanding through trans-border acquisition and influencing both countries. Parts • LKQ acquires Max Auto • LKQ acquires Sunshine • LKQ acquires Cross Canada • LKQ acquires Pro Body Parts Canada PBE Distribution • UniSelect acquires FinishMaster, J.K. Distributors, Metro Paint • Lakeland Auto Paint and Supply, Metro Paint Supply, J. K. Distributors Collision Repair, Fleet • OnCap acquires Caliber • OMERS acquires Caliber • Boyd makes numerous U.S. MSO and glass acquisitions • Fix Auto Canada acquires all Fix master franchises • Element Financial acquires PHH Arval Insurance • TD Insurance acquires Liberty Mutual Canada • Travelers Insurance U.S. acquires Dominion Insurance Canada • Desjardins acquires State Farm Canada • Hub International acquires St. Andrews Insurance Brokers and Essex Insurance Brokerage • ING acquires Alliance • ING becomes Intact with acquisition of Dutch held ING by private and institutional investors Technology, Data, Software • Hellman & Friedman U.S. invests in CarProof Canada • Quindell acquires iter8 Inc., marks entry into North American insurance market • KKR acquires Mitchell International

december 2014 collision Repair 49

Coast to Coast

The Mitchell Road Show comes to a triumphant conclusion in Halifax.

he Mitchell Road Show landed in Halifax recently, concluding this year’s cross-country tour. It’s been quite a trip, starting on Canada’s west coast in Vancouver and reaching the final destination in a city bordering the Atlantic. Stops along the way included collision repair facilities in Alberta, Ontario, and Quebec. Mitchell made two stops in the historic port city of Halifax: CSN – Chapman Auto Body and one of the collision centres belonging to the Steele Auto Group, a dealership organization with four collision facilities. Laurie Hutt is the manager of the Steele Collision Center at 6050 Livingstone Street, one of two facilities the group operates in Halifax. The facility has a staff of 10 and produces approximately 250 to 300 work orders per month. “We use Mitchell Estimating, of course, because it drives everything right from the start,” says Hutt, noting that they’ve recently started using Mitchell RepairCenter as well. “It delivers a lot of information, and it does it automatically. Frankly, we’re still not using it to its full capabilities. We’re still learning how to use it, but we’re on our way.” Regarding the learning curve, Hutt notes that Mitchell has always responded quickly to the questions he has had. “If I have a problem, I call them up and they fix it,” says Hutt. “We don’t have to wait for hours to hear back. Their head office is in California, on the other side of the continent, but we haven’t had enough problems to make the time zone difference an issue.” Graham Owen is the General Manager, Collision Division, for the Steele Auto Group. He’s responsible for all four of the group’s collision centres, including the two in Halifax and the two in Dartmouth.

The team at CSN Chapman Auto Body.

The Steele Collision Portland Street team.

“Four out of four locations use at least some Mitchell products,” says Owen. “From the top level, we use a Mitchell product called Office Manager. It’s like a digital whiteboard, and it allows us to keep track of everything at all four locations.” Mitchell’s next stop was CSN – Chapman Auto Body, owned and operated by Kelvin Campbell. His facility currently uses Mitchell RepairCenter and Mitchell Estimating. “We were already using Mitchell Estimating extensively, so RepairCenter seemed to be a good fit,” says Campbell. “We had some issues at first, but we’re still using it and things are running smoothly.”

Mitchell RepairCenter

™

Part of the Mitchell Road Show is demonstrating new and upcoming Mitchell products to members of the industry. The team from Mitchell took the opportunity to show Campbell a new product while at CSN – Chapman Auto Body. “They showed us their latest offering. It connects with ARMS, the management system used by Enterprise Rent-A-Car,” says Campbell. “What I can say right now is that there is exciting new stuff around the corner for both customer updating and insurance updating.” For more information on Mitchell, please visit mitchell.com.

Profit at work.

Digital Marketing =

Profit. RepairCenter Digital Marketing helps turn prospects into loyal, repeat customers.

• Create your online presence and attract new customers to your shop. • Keep current customers informed about their vehicle repair and more. • Expand loyalty and referrals from customers.

To learn more today, visit www.mitchell.com/digitalmarketing or give us a call at 1.866.990.9279

www.mitchell.com

INDUSTRY EVENT

Forward Thinking CSN looks to the future at annual conference. By Melissa Hayes

“

f you want something you’ve never had before, you have to be willing to do things you’ve never done before.” That was part of the message delivered by George Kourounis, one of the keynote speakers at the 12th Annual CSN Conference, which took place September 18 to 21 at the Westin Prince in Toronto, Ontario. The theme of this year’s conference was Forward Thinking. The conference got underway on Thursday September 18 with a welcome reception, followed by dinner and awards honouring the facilities who went above and beyond in the past year. The awards were followed with an autograph signing and photo session with former NHL player Wendel Clark. The Friday session opened with an address by Flavio Battilana, COO of CSN Collision Centres. He discussed changes such as telematics, driverless cars, and increasing vehicle complexity, as well as

Right: George Kourounis, host of Angry Planet. Kourounis was the keynote speaker at the second day of the conference. Far right: Karl and Brigitte Strachan of CSN - Collex Collision, and Sharon Ashley of Micazen Consulting.

how to attract and retain young potential employees, the changing landscape of the market, and how CSN is meeting these issues. “The development of the CSN logistic center will help our partners to not only provide greater levels of service and support in a performance environment, but to better manage the work for maximum results, that leads to high quality repairs, with customer retention, and strong cost management as its fundamental cultural value,” says Battilana. Battilana also discussed the ongoing technician shortage, and why it’s critically important to develop technicians with a process and performance mindset. “The projected closure of small shops will not provide the future technicians for our industry, as most of these shops are not at a level that provides an employee ready to enter into a process or production driven environment,” says Battilana. “A possible validation of this is the interest of the OEM, in the repair of their vehicles. Today, there’s a risk that vehicles are

52 collision Repair collisionrepairmag.com

not being repaired accurately, therefore leading to risk of quality, safety, and customer retention.” Battilana was followed by the Visionary Panel, with panelists Lorenzo D’Alessandro, Joe Frangione, Steve Hammond, Rejean Marchand, and Dale Keizer. The panel was moderated by Larry French of CSN. “Visionaries base their actions in deep knowledge and systematic thinking but also in vivid imagination,” says French. “Visionary leaders understand the most important trends of their own operational environments but are equally aware of what happens outside their territories. This means, among other things, their competitors, new technologies, the economy, and political decisions.” Dianne Buckner, the first keynote speaker of the day, followed. Buckner is best known for her work on business programs such as Venture and Dragons’ Den. She identified several trends, including the drive towards greater convenience, escalating expectations, and increased consumer skepticism. Kourounis was next to take the podium after a short break, regaling attendees with anecdotes and practical advice from his adventures. Kourounis is the host of “Angry Planet,” a show chronicling his adventures in inhospitable environments. The lunch break was followed by rotating breakout sessions with a number of insurance partners. The Vendor Showcase also officially opened, allowing attendees a chance to browse exhibitor booths before the final speaker of the day, Keith Hudd of Economical Insurance.

INDUSTRY EVENT

The Visionary Panel. From left: Steve Hammond of CSN - Morinville Auto Body, Joe Frangione of CSN-Bemac Group, Dale Keizer of CSNKeizer’s, Rejean Marchand of Carrossier ProColor Shawinigan, Lorenzo D’Alessandro of CSN 427 and CSN - Avenue Collision, and Larry French of CSN.

The second day of the CSN Conference concluded with a gala dinner and entertainment at Sunnybrook Estates Pavilion. Day three of the 2014 CSN Conference saw keynote speaker, PPG Canada’s Norm Angrove, take to the podium. With a focus on the future, and how shop owners need to step up their game and rethink SOPs in terms of marketing and overall customer service experience to cater to the newer generations, the National Business Development and Business Solutions Manager says you can’t rely on what worked yesterday to hold true today. “Past success guarantees nothing when the rules change, we have to understand and embrace that,” says Angrove. “Marketing strategies, the way we attract customers, the way we retain customers, have changed unbelievably. “The way we connect with customers is absolutely a brand new game. Now, what does that mean? Well for the people who haven’t figured it out, it’s creating opportunities, and what it does provide is value innovation.” Angrove says the bar has been raised, and generations Y and Z are expecting much more from service providers across the board, and compare those services, albeit unrelated, to one another. Referencing the successful business models of Disney, FedEx and Wal-Mart, he says the difference between providing mediocre and worldclass customer service lies in the ability to adapt faster than the competition. “They’ll take that leap of faith, they’ll go that extra mile, they accept that status quo isn’t just what it is, and they clearly

Left: Norm Angrove of PPG and Leanne Jefferies of AIA. Right: Dan Galler of Northbridge Insurance and Richard Marsh of CSN – Brimmell Collision Centre.

Matt Gibson of Flat Line, Lorenzo D’Alessandro of CSN - 427 Auto Collision, and Scott Wideman of Volkswagen.

think outside of the box,” he says, adding, “Getting to world-class, there is no elevator just to get to the top. You’ve got to climb the stairs.” He says that climb starts with strong leadership, and taking the initiative to sit down with your team, to identify all customer service touchpoints—your front office, internet strategy, ads, the way people answer phones, the way they dress, the backrooms, production areas—and how to go about implementing improvements to make your business stand out “in a world of sameness.” “Basic is run of the mill, basic is what people expect when dealing with you . . . if you really

want to have world-class experience, you’ve got to get . . . the wow factor, which is something totally unexpected,” he says. “This wow factor provides a world-class atmosphere, and people talk about your business.” Angrove says owners need to tackle larger objectives first, and shelve smaller ones for later. He says by putting customer service first, and utilizing new technologies and marketing strategies, you’ll be well ahead of the curve. “This industry is very, very competitive and we have to take control of it, to take the customers where we want to go.” For more information on CSN Collision Centres, please visit csninc.ca. CRM december 2014 collision Repair 53

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Crystal Ball I-CAR looks into the future, focusing on industry trends in newly designed course. By Melissa Hayes

-CAR is aiming to keep industry members informed and ahead of the game with their new Vehicle Technology and Trends 2015 course. Premiering at the 2014 SEMA Show, the latest in the vehicle technology and training series—NEW15—sets out to provide students with a preview of up and coming trends directly related to the collision repairer community, uti-

touching on structural design innovations, system changes and new materials and electronics throughout new and redesigned vehicles. Falling in line with the facilitator’s mission to deliver knowledge needed to perform complete, safe and quality repairs, the I-CAR series will also dive into the proper practices of aluminum repair training demanded by the surge of OEM

“Courses like these are really paramount to the health of the repair industry” - Andrew Shepherd, Executive Director of I-CAR Canada

lizing HD videos and activities to help inject the excitement of auto shows into the confines of the classroom. I-CAR Canada’s Executive Director Andrew Shepherd says that given the ever-evolving landscape of the industry, the New Technology series is critical. “The main focus of this course is to deliver a forecast of what’s to come down the line and how it will impact those involved in the collision repair industry,” he says. “Each release in the series describes the latest developments in technology, materials in vehicle construction and repair techniques, and their anticipated impact on processes.” Shepherd says the training details the way these shifts will necessitate changes in the way techs approach repairs,

aluminum-intensive vehicles set to enter the consumer market. Shepherd says understanding these changes before these newer vehicles enter shops is a key component of the course. “Every course release in this series proves to be among the most popular of our offerings,” says Shepherd. “I think it’s because technicians are very keen on understanding where their careers, their livelihoods are going—really, what their world will look like in the coming months. “Courses like these are really paramount to the health of the repair industry,” he adds. Registration and more information on Vehicle Technology and Trends 2015 is available on the I-CAR Canada website at i-car.ca. CRM

Want a better ROI on Training? Become a Learning Organization! One of the biggest objections to training is the “what if my tech quits” question. All that money spent and the guy moves to another shop. Was that money wasted? Well, not if you are a learning organization. Let’s look at the “training wasted” scenario. You tell your techs they have to attend training (which you don’t) because I-CAR Gold Class will bring in business from an insurer or a dealer. Let them figure out what class to take. When you realize at the end of the year no one bothered, you call I-CAR and insist on a class (any class), this coming weekend because your staff happens to be free. Next year it repeats. After 10 years you’ve spent quite a bit on training with nothing to show for it. Try this approach instead: • Share your vision: Make sure everyone knows that the learning of the group directly affects your KPIs which can make or break the shop. Make sure everyone sees that you are personally engaged in the objective. • Target the need: Target your training based on what is missing in each tech as well as the shop as a whole. • Ask: Ask your trainees about what they learned, how could it be applied, and the changes needed to take advantage of the new information. • Share the learning: Ask for a five-minute recap of the training at a team meeting. Build the expectation that the whole shop benefits from the money invested in training. • Reward training: It can be financial compensation, a round of public applause or even a gift card for achieving certain training stages. It’s not the amount but the consistent, public feedback that counts. • Leadership commitment: Strong leadership uses training to improve the shop, KPIs and focus on team growth it is core of a learning culture and organization, and WILL ensure that training pays.

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Education Centennial College’s program is training tomorrow’s technicians today. By Mike Davey

embers of the collision repair industry are certainly no strangers to measuring Key Performance Indicators (KPIs). In a way, every KPI is about satisfying the customer. Whether it’s speed, quality, or communication, it all comes down to making sure the end-user is satisfied and has a positive experience. Judging by the numbers, students at Centennial College’s Auto Body program are having that positive experience. The college, located in Toronto, recently honoured the program with an award for their increased KPIs. Some people may be surprised to learn that colleges use KPIs as well. In their case, the end-user is typically the student. The KPIs for a particular program are based not just on educational outcomes, but on how well students feel their needs are being served. This is more important than it might appear at first. The course material and information being delivered is certainly key, but students learn best when they feel that they’re receiving value. There doesn’t seem to be any question that the program at Centennial College is delivering that value to its students. The award is given for hitting certain targets, and the bar is set high. This is the first year the Auto Body Repair Techniques program has received the distinction, but the reasons for the increase in satisfaction are still in place, so there seems little reason to doubt that they’ll receive the award again in 2015. Centennial College relies on broad student surveys to determine a particular program ‘s key performance indicators. Rest assured, the Auto Body Repair Techniques program was already satisfying the majority of its students. However, Automotive & Mo-

Coordinator/faculty member Paulo Santos and faculty member Daniel Chudy discuss student assignments

torcycle Department Chair Dave Samalea and the instructor staff noticed that some of their students didn’t think they were receiving full value. It was a minority, but they saw an opportunity to do better. “We looked at the way we were delivering courses, and made some extremely small changes,” says Samalea. “These weren’t to the course content itself, but in a lot of cases, simply to the way it was discussed with students.” In at least some cases, these changes were not even about the automotive aspects or technical knowledge, but simply about the way students could communicate with the college. “One of the KPIs for every program in the college is to ask students if they’re satisfied with the level of feedback they received,” says Samalea. “We managed to increase that score by simply explaining to students what ‘feedback’ means in this

56 collision Repair collisionrepairmag.com

context. It’s your instructor saying ‘You did a good job on that panel, but this one still needs some work.’ It’s graded assignments. In short it’s any communication from the instructor to the student about their work.” This might seem pretty basic, but the fact of the matter is that for some students it needed to be explained. There’s a lesson here for everyone. In any discussion, make sure you define your terms and you can move forward together. If you have different definitions (or no definitions at all) you’re not going to get anywhere. This might seem like a small thing, and it is a small thing. So is the rock that starts a landslide. You don’t need big changes when you make the right ones. One part of the survey asks students if a particular course has prepared them with adequate work skills. In 2012, 87 percent of students in the Auto Body Repair Tech-

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niques program believed that it had. That number is certainly not low, but it could be improved. In 2013, it was improved significantly. The last survey done indicated that the number had increased to 96.5 percent of students. That’s a significant increase. Remember that the course content hasn’t changed, and yet a far greater percentage of students believe they’re receiving full value. The key must have been how outcomes, expectations, and feedback are delivered. Guess what? Applications for Centennial’s Auto Body Repair Techniques program have increased in the last year. This is at a time when enrollment is down across the province in all fields. In other words, the program is attracting candidates to our industry, and it’s relatively rare that students drop out of the program. “We had one student drop out so far this year,” says Paulo Santos, an instructor with the program. “He was satisfied with the program, but he was an international student and there was trouble at home that he needed to go back and deal with. I believe he still intends to finish at some point.”

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The school is progressive in other ways as well. Reflecting the changing nature of the collision repair industry, the program recently hired its first female instructor,

Applications ... have increased in the last year

Hillary Nowak of CSN - 427 Auto Collision, and like all Centennial’s program is concerned with equipping students with more than just job skills. First, there are what are called Essential Employability Skills. These are not job skills as such, but skills for life. While this may

at first seem to fall outside the mandate of a skills-focused educational program, it’s important to remember that it takes more than hard skills to be a success. Technical competence is simply the price of admittance. Staying with an employer and being successful in the shop environment takes something more. Team work, taking responsibility for your actions, and time management skills increase an employee’s value enormously. In addition, Centennial College strives to inculcate Global Citizenship & Equity outcomes in all of their students. This is the material that goes beyond both hard and soft skills, and into the realm of turning out students who are better people. For some programs this is a literal requirement. It is not for Auto Body Repair Techniques, but they still try to get them across to their students. Even here, this can be a benefit to employers. Racism, sexism, and classism may not come up much in your business. Wouldn’t it be better if they didn’t come up at all? For more information, please visit centennialcollege.ca. CRM

december 2014 collision Repair 57

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Mitapping Out

Chief University focuses on the role real-time computerized measuring plays in the industry.

hief Automotive Technologies invited industry media members for a two-day training and demonstration session focused on collision and design-based repair theory, while shining a light on the capabilities of its LaserLock Live Mapping System. Held at Vehicle Service Group’s world headquarters in Madison, Indiana on September 24 to 25, the course set out to provide insights on the role of computerized measuring systems in the collision repair industry. Richard Perry, Chief Automotive Technologies Global Repair Product Manager, led the training and says the use of laser mapping is necessitated by changes in materials used in modern vehicle design and construction. “We’ve always thought it was important to measure the entire vehicle,” he says. “But with the advanced high strength steels or aluminums or composites that today’s vehicles are built with, it’s harder now than ever to see and rely on traditional visual indicators. “The amount of force that goes into the vehicle in a collision hasn’t changed—what

has changed is how the energy is absorbed and where that force is being transmitted throughout the rest of the body. It may look like the damage is just in the area of impact, but those forces may have transferred through other parts of the vehicle and if the vehicle isn’t measured, the technician may be unaware of additional damage somewhere else.” Perry says Chief ’s LaserLock Live Mapping system expedites shop cycle time by providing a complete picture of all damage at once, through reading the measurements of an entire vehicle simultaneously. “The real benefit of Live Mapping is the ability to find out exactly what’s wrong with the vehicle before it goes from the estimating area to the technician’s bay,” he says, “Once we set it up and measure, we leave the targets on the vehicle, as a continuous reading of those targets.” When shifting to repair, Perry stressed the idea of multiples: multiple measuring points, pulling at multiple points simultaneously with equalized pressure, and holding at multiple points. “Essentially, we want you to walk away thinking multiples, that’s the biggest

58 collision Repair collisionrepairmag.com

OEM Global Repair Product Manager Richard Perry shows the class how the system guides technicians in target placement in order to get a complete picture of collision damage on a vehicle. Below: Richard Perry demonstrates how to set up to pull out frame damage.

thing and really key to understanding the whole process.” Following training, attendees were given the chance to witness the system firsthand through Chief ’s provided demos. Chief University provides a range of classes designed for industry stakeholders, including estimators, appraisers, insurance adjustors, and repair technicians. It currently offers a Computerized Measuring Training focused course, eligible for I-CAR credit. Up and coming courses include a revised design-based repair class, as well as training focused on aluminum repair analysis and welding. CRM

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Ontario towing and storage rules to change with passing of Bill 15 By John Norris

Towing and storage issues have been a major headache for Ontario automotive shops. In an effort to reduce abuse of the Repair and Storage Liens Act and to address large towing bills that lead to high insurance rates, the province of Ontario—acting on the Anti-Fraud Insurance Task Force’s advice—reintroduced legislation after the last election to address towing and storage issues in the form of Bill 15. In December 2013, stakeholders met to discuss the best ways to approach these issues. Four meetings were held in early 2014 under the auspices of the Ministry of Consumer Services (MCS), with two meetings on storage and two about towing. Recommendations from those meetings were reviewed by MCS, and the government moved quickly to enact regulation changes.

Frankly, if you operate a legitimate, compliant repair facility, these changes will have little effect. But if you do not, then be prepared for significant change. Ontario towing operators and vehicles will be regulated by the province. In the past, 18 of 440 municipalities regulated towing in a patchwork of police contracts, bylaws and licensing. Towing operators will have to abide with the Commercial Vehicle Operator’s Registration (CVOR), which sets the standards for equipment, training, pricing procedures, safety, and performance. Actual pricing models may be set by a “fair value” committee of stakeholders into the future, while storage yard activity is controlled, meaning a yard cannot charge more to an insurer than they would normally charge a regular customer. The notice pe riod in the Repair and

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Storage Liens Act allows for amendments. Currently, the Act refers to notification to those having an ownership interest at no more than 60 days if the shop wants to continue to bill for storage. That may change to as little as 15 days. Towing abuse may be diminished with this Bill, and storage yards—including those shop-owned and on your lot—will get cleared faster. Always obtain signed repair authorization and customer contact information to ensure they are the vehicle owner. There is nothing wrong with asking for a deposit prior to major repairs. If you’re unsure whether you should pay a towing bill, please remember, the customer ordered the tow, and is therefore responsible for it. While you are being kind in paying, get paid for what you do!

Peace River tower dies in two-vehicle collision A 51-year-old towing operator from the Peace River region fell victim to a fatal twovehicle collision on October 15. As reported in the Beacon News and Edmonton Journal, RCMP investigations drew that the All Peace Towing and Hotshot. employee was hooking up a pickup truck southeast of Peace River on Highway 2 on North Harmon Valley Road at around 9:30 a.m. when the collision took place. Police say the towing rig was struck from behind by a green Ford Taurus. Both the tow truck operator and driver of the Taurus died on impact. The incident is under investigation by Occupational Health and Safety.

For advertising inquiries, please contact Mike Davey at 905-370-0101 or advertising@collisionrepairmag.com. december 2014 collision Repair 61

Contents Recycling News......................63- 71 Highlights from the ARA Convention, ARAAC looks at legislation, and much, much more. Recycler’s View...........................72 by David Gold

Education, networking among the top draws at ARA Convention By Mike Davey

cari hosts annual consumers’ night event The Canadian Association of Recycling Industries recently held its largest networking event of the year: Consumers’ Night. The event took place at the Hyatt Regency Toronto at 370 King Street West. For CARI members, the event serves as an opportunity to meet face-to-face with representatives from the biggest consumers in North America and to network with many other brokers, dealers, and suppliers in the Canadian recycling industry. For more information on CARI, please visit cari-acir.org.

The ARA Convention brings together recycling professionals from across North America. From left: Herb Lieberman of LKQ, David Gold of Standard Auto Wreckers, Steve Fletcher of the Automotive Recyclers of Canada, and Joe Nissenbaum of Nissenbaum Auto Parts.

The Automotive Recycling Association’s (ARA) 71st Annual Convention and Exposition took place October 22 to 25, 2014 at the Gaylord Opryland Resort and Convention Center in Nashville, Tennessee. It was

Rick Tuuri of Audatex and Janice Schroeder of Car-Part.com. The annual ARA event serves as an excellent venue for networking and reconnecting.

one of the best attended conventions so far, with over 1,100 auto recyclers traveling from across North America to attend. “One of the greatest attractions is our top-notch educational program,” says ARA CEO, Michael E. Wilson. “This year’s educational and training program was focused on seven key areas: business management, future technology, operations, profitability, salesmanship, sustainability, and global perspectives.” Other highlights included tours of Nissan North America’s manufacturing plant, 12 hours of Exposition with over 100 exhibitors, a networking breakfast for the Ladies of the Automotive Recyclers Association, and the Annual Awards Dinner and Presidential Gavel Passing. Attendees also heard a report on how ARA is working on several different fronts to obtain necessary parts information from OEMs.

Gloria Mann of Canadian Auto Recyclers magazine and David McBride of Elemental Controls.

Randy Douglas of JM Bastille Acier and Larry Kummer of London Salvage.

Continued on page 64. december 2014 collision Repair 63

ARA Convention... continued from page 63.

Dalbert Livingstone of Island Auto Supply, and Derek and Darlene Covey of Covey’s Auto Recyclers.

“We are actively pursuing this issue in Congress, NHTSA, and with the automakers,” says Jessica Andrews, Director of State Government and Grassroots Affairs for ARA. “The attention on the

OEM parts recall issue provides a critical opportunity for us to educate policymakers and industry on the need to have parts data so that we can better identify parts for repairs and to estimate vehicle value.” Ed MacDonald of Maritime Auto Parts in Truro, Nova Scotia, gave his final speech as the President of the ARA. His tenure on the Executive Committee continues in a supportive role as the Immediate Past President, where he will help direct the actions of ARA, as well as lead ARA Regional and At-Large Directors, the organization’s eyes and ears at the grassroots in each region. “What a year it has been,” says MacDonald “It has indeed been a privilege to share experiences and work with you—a diverse membership of progressive and talented industry leaders.” MacDonald was first nominated to serve on the Executive Committee in 2010. “In my first address to you as ARA President about this time last year, I spoke of my plans to help strengthen ARA through building partnerships and promoting certification. With the help of leadership, colleagues and staff, your association has made great strides on both of these initiatives this past year,” says MacDonald. “As I traveled this past year, I became acutely aware of the various

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colourful and creative differences common to our industry not only within North America but worldwide.” Ricky Young of Young’s Auto Center & Salvage in Benson, North Carolina, will serve as ARA President for 2015. MacDonald isn’t the only Canadian on ARA’s Executive Committee. David Gold of Standard Auto Wreckers starts his tenure this year in the position of Secretary. He will become President at the Convention in 2017 and serve in that role through 2018. “David Gold has been on the Nominating Committee’s list of possible candidates to serve on the ARA Executive Committee for many years,” says Chris Wright, ARA Past President and Chair of the Nominating Committee. “We are very pleased that David accepted the position and is ready for the role and responsibilities that come with serving on the Executive Committee.” Gold has many years of experience both as a recycler and as an active association member of ARA, the Ontario Automotive Recyclers Association and the Automotive Recyclers of Canada. “I grew up in this industry and have watched it mature over the last two decades. I am so proud to be a part of this industry and I am truly lucky to now have the opportunity to help steer it into the future,” says Gold. “I am really proud to be in an industry that is so important

Ed MacDonald, Immediate Past President of ARA, and Michael E. Wilson, the organization’s Executive Director.

to both the economy and the environment. I have always been progressive minded in my own business and hope to bring that type of positive, forward thinking energy to my position with the ARA.”

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ARA Convention... continued from page 65.

The 2014 STAR Award Winners were: • ARA Member of the Year Steve Holland, Brandon Auto Salvage,Valrico, Florida • ARA Regional Director of the Year - Lawrie Beacham, Jeepart Recyclers, Hervey Bay, QLD Australia • ARA Affiliate Chapter of the Year Iowa Automotive Recyclers, Waterloo, Iowa • ARA CAR Member of the Year - Reitman Auto Parts & Sales, Melbourne, Kentucky Ed MacDonald proudly awarded his President’s Award to the very deserving Jerry Brock of Brock Supply. The ARA President’s Award is an honour bestowed by the Association’s President to an individual who has shown exemplary dedication to the industry through their service and work on behalf of the Association. “Jerry Brock and Brock Supply have exhibited at every ARA Convention since 1967,” says MacDonald. “His history of support to ARA, the culture of giving back that is instilled within his company, and service within his home state of Arizona speak volumes about the kind of man Jerry is. His enthusiasm and passion for

A busy schedule still leaves some time for fun. Some of the live entertainment during one of the social events at the ARA Convention.

the industry is contagious. Jerry is a true asset to the automotive recycling industry and we are lucky to have him.” MacDonald also presented a special posthumous award to automotive recycler Bob Phelps for his contributions and announced that a permanently named scholarship has been established in his memory. Phelps was the owner and operator of Central Auto Recyclers in Concord, New Hampshire. Three new ARA Lifetime Honorary Members were recognized for their significant contributions to the association and for furthering the goals of the association and the automotive dismantling and re c y c l i n g i n d u s t r y. They were Kennie Andersen, Bob Griggers, and Bob Eubanks. N e x t y e a r ’s A R A Convention will take place in Charlotte, North Carolina on October 7 to 10, 2015. Please visit a-r-a.org for more information.

Roger Schroeder of Car-Part. com presenting at the ARA Convention. Education is a vital part of the annual event.

66 collision Repair collisionrepairmag.com

Serving the Automotive Industry for Over 45 Years

Atlantic auto recyclers look at provincial legislation at latest meeting Maritime members of the auto recycling industry gathered for the Automotive Recyclers Association of Atlantic Canada (ARAAC) 2014 Annual Meeting. Held at the Holiday Inn Hotel & Conference Centre in Truro, Nova Scotia, the October 18 event kicked off at 8 a.m. with a provided breakfast before launching into meetings and elections. During the elections portion, Dana Poehl of Poehl’s Auto Recyclers, and One Stop Auto’s Larry Drouin stepped down as treasurer and secretary respectively, with Shelley Roy of Blenkhorn Auto Recyclers and Capital City Auto Parts’ Heather Langille called upon to fill the roles. ARAAC President Dalbert Livingstone, of Island Auto Supply, welcomed Roy and Langille to their new positions within the association, while thanking Poehl and Drouin for their years of service. “Dana was treasurer when I first started coming to ARAAC meetings, and now he’s finally passed the torch onto someone else,” Livingstone says, adding that the association provided a presentation and gifts to honour Poehl and Drouin for their long-standing membership and dedication. “I’m excited to see what Heather and Shelley can bring to the table as a younger generation.” Following the elections, ARC Managing Director Steve Fletcher delivered the meeting’s international report, in addition to a white paper focusing on provincial legislation changes relating to the auto recycling industry. “PEI is still the first province to change their legislation, but it looks like Ontario and Saskatchewan are making some headway,” Livingstone adds. “New Brunswick is getting very close, and I think they’re moving in a positive direction.” For Livingstone, these types of meetings are important simply due to the wealth of information shared among members. And it’s this information, whether of regional, national or international scope, that he says can’t be found elsewhere.

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Robert Counts at the ARAAC meeting. Counts presented on CBC Dashboard, a software package designed to help manage auto recycling operations.

Attendees then heard from Robert Counts of Counts Business with a presentation on CBC Dashboard. As co-founder of the software, Counts walked members through its aim to assist recyclers in keeping tabs on company vitals, diagnosing problems and creating solutions. After breaking for lunch, Counts continued as speaker with training sessions focused on the Three P’s—People, Processes and Perception, as well as the intricacies of running a family business before the day concluded with a yard tour of Blenkhorn’s Auto Recyclers, scheduled reception and BBQ. With this year’s meeting wrapped up, Livingstone says ARAAC members will connect again in May and while no keynote speakers have been lined up as of yet, Langille and Fletcher have been busy meeting with various environmental departments in hopes of proposing legislative changes. Livingstone is optimistic that more progress will be made and that environmental legislation will begin to reflect the modern auto recycling industry. “Every time we have a meeting, somebody else is getting closer and it’s really exciting,” he says. “It would be nice to have every province update their outdated legislation to be more in line with the progressive automotive recycling that we’re doing today.” For more information, please visit ARAAC.ca.

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december 2014 collision Repair 67

Looking Back … and Forward By Mike Davey It’s been eight years since Michael Carcone and his father Tony appeared on the cover of the very first issue of Canadian Auto Recyclers magazine. The father and son team are the co-owners of Carcone’s Auto Recycling in Aurora, Ontario. With a new edition of the much lauded publication appearing soon, we decided to visit with Carcone and see how the landscape of auto recycling and his business have changed. “What’s changed? Shoot, there’s not much that hasn’t changed,” says Carcone. “From consolidation, to the implementation of parts procurement systems, every area of our business has seen big changes.” Carcone points out that a lot of what was once person-to-person, is now essentially a software transaction. Inventories are uploaded nightly to the systems Carcone’s Auto Recycling partners with, the shop uploads its estimates, and chooses parts from the recycler of its choice. “The personal contact is just not what it used to be,” says Carcone. “It’s not a disadvantage. It’s just change, and it’s something you have to get adjusted and accustomed to. There’s always an adjustment when something new comes along. It’s how you change and adapt that will make the difference.” Part of the change at Carcone’s Auto Recycling is the diversification into other product lines. The facility is well known for its wheel refinishing business, and they carry other lines as well, such as OE surplus.

“We’re constantly looking for the next avenue. This isn’t so much about competimagazine YOUR KEY TO THE RECYCLING MARKE T tion, but about always moving our business forward,” says Carcone. FULL SPEED AHEAD Like his father before him, Michael Carcone is a strong WHO MAKE A proponent of profesDIFFERENCE: sional associations, MEET THE NEW FACE OF AUTO at both the provincial RECYCLING and national level. “The association INDUSTRY OVERHAUL gives us one voice. As Scrapping the Image: This is NOT your individuals, we fight grandfather’s scrapyard the same battles that LIFE AFTER we would as an assoDEATH ciation, but we’d have Find out how recycling can take your ELV to It’s kept Carcone’s Auto Recycling at the a better place forefront of the industry for 28 years. to fight them completely on our own,” says Carcone. “The asVolume 1 Issue 1 sociations have been instrumental in helping to change the percepMichael Carcone was the subject of the very first cover story in Canadian tion most people have Auto Recyclers magazine back in 2006. We recently sat down with of the auto recycling Carcone to discuss the changes in the recycling industry since then. industry.” There’s no question that this perception is changing, but it can The negative perceptions don’t just effect seem like a very slow process for someone some consumers views, but also is a hinwho knows what the industry is really like. drance to attracting high quality staff to an

Tony Carcone, Michael’s father and the founder of Carcone’s Auto Recycling. Tony was an early crusader for higher standards and professionalism in the automotive recycling industry.

The fleet of trucks at Carcone’s Auto Recycling.

PASSION FOR PROGRESS

68 collision Repair collisionrepairmag.com

Announcing Canadian Auto Recyclers 2015! We’re gearing up from production on the next great edition of Canadian Auto Recyclers magazine, and this issue promises to be bigger and better than ever! With an in-depth overview of Canada’s auto recycling industry, profiles of the country’s top recyclers, and the latest news on how they can help you and your business do things better, faster, and cheaper, the 2015 edition of Canadian Auto Recyclers magazine is not to be missed! Other highlights include updates on how auto recyclers are protecting our water supply and environment, and how a new initiative is bringing auto recycling to Canada’s far north. Watch for it in January!

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Michael Carcone displays the ISO certificate earned by the company’s wheel refinishing division.

industry that they know very little about. “Working for a modern up to date recycler is really no different than working in a dealership service department. It’s the same sort of set-up, working with the same sort of equipment,” only we dis-assemble rather than repair says Carcone. “But because our company name may contains recycler, wrecker or ‘salvage,’ some still view us in a much different light. “Thankfully this is changing.” There have certainly been major changes over the last eight years, enough to make you sympathize with Carcone’s first question: what hasn’t changed? “The one thing that hasn’t changed is a commitment, the passion, and the devotion to quality,” says Carcone. “You can try to grow and expand, but if you can’t offer a part on time, as promised, at the quality you described, you just won’t do well. At the end of the day, that’s what it’s all about.”

There’s plenty of life left in Green Recycled Parts. And putting them back on the road is a great thing for the environment, your customers and your business. So offer your customers an environmentally friendly alternative that will save them about half the price of new OEM parts without sacrificing performance or quality. Not only will they appreciate it, you’ll be rewarded with enhanced customer loyalty, trust... and more repeat business.

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december 2014 collision Repair 69

Global gathering brings together different perspectives Examining different process, methods, and goals can provide insight into how you run your own business. For Lorne Denneus, this was part of his motivation for attending the most recent meeting of the International Roundtable on Auto Recycling (IRT) in Kushiro, Japan. The IRT brings together leading international automotive recycler associations, industry officials, guest speakers, and local auto recyclers to discuss the global auto recycling industry. Denneus is the co-owner of Highway 4 Auto Salvage with his father, Roel Willekes. The business is located in Coombs, British Columbia. “For me, the biggest highlight was the yard tour. I got to directly experience how they do things, as opposed to how we do it here,” says Denneus. “That’s a lot of why I went. To pick up some new ideas and see if we could apply them here.” This year’s IRT was hosted by the Japan Auto Recyclers Association (JARA). Well over 200 stakeholders attended, not counting IRT staff and volunteers. While Japan’s auto recycling industry obviously made a strong showing, international participation was also high, with 55 delegates travelling from outside the country to attend.

“Here, we tend to focus on parts sales and re-utilization,” says Denneus. “They focus more on scrapping the car, with lots of different bins for different materials. I’m not sure if the way they do things would be financially viable here, but it’s certainly a learning experience.” In addition to Denneus, Canada’s contingent consisted of Steve Fletcher, Managing Director of the Auto Recyclers of Canada (ARC), and Ed MacDonald, President of the Automotive Recyclers Association (ARA). There were a few highlights from the IRT of special interest to North Americans. First, Jeff Schroder of Car-Part.com announced a partnership in which Japan Auto Recycler Alliance, a super network of auto recyclers throughout Japan, will feed parts information to Car-Part.com to create a marketplace with parts from the US, Canada, Japan, and Mexico. The parties will cooperate together on eCommerce initiatives. In addition, ARC has signed a Memorandum of Understanding with the Malaysia Automotive Recyclers Association (MAARA), in which MAARA and ARC agree to collaborate in a number of matters related

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70 collision Repair collisionrepairmag.com

The latest meeting of the International Roundtable on Auto Recycling brought together delegates from more than 50 countries.

to Malaysia’s auto recycling industry, including Big Data analysis, best practices, establishing industry standards, green technology, R&D, and business modeling. Among the other highlights from the meeting, delegates were presented with a global overview of current developments in relation to automotive recycling through individual country presentations that addressed key issues facing the industry including environmental standards and best practice, public awareness, government policies, manufacturer policies, industry stewardship, education and training, and research and information sharing. “There was definitely a focus on the proper disposal of ELVs and

environmental protection, which in North America, I think we’re pretty good at it,”says Denneus. “It’s an important issue for the global industry, as there are lots of countries that have no regulations at all.” The IRT noted the significant progress being made in “regulated” jurisdictions towards the achievement of a target of 95 percent recyclability for End-of-Life motor vehicles (ELVs), and also acknowledged the positive outcomes being achieved in less regulated jurisdictions where increased awareness of the environmental risks posed by ELVs is being achieved at community, government, and manufacturer levels. For more on the IRT, watch for the next issue of Canadian Auto Recyclers magazine!

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Executivelevel Associations provide us with a bigger voice. By David Gold

’ve just returned from the 71st Annual Automotive Recyclers Association (ARA) Convention & Exposition held in Nashville, Tennessee. This isn’t the first time I’ve attended, but it was the first time that I have attended as a member of the Executive Committee. The Executive Committee of the association helps to direct the actions of the ARA, steering it in the direction of biggest benefit to our members. My position with the Executive Committee is that of Secretary. This is the starting position for everyone who joins the Committee. Every year, members of the Committee move up one rank. Canada has been well represented on the

mark, we’re usually more interested in the components that aren’t wrecked! Make no mistake, the stigma still exists, but I think it’s at the lowest point it’s every been. Members of the public are catching on, and every positive story you see in the media helps with that, especially since big newspapers, TV stations, and trade publications started calling us auto recyclers. A lot of the reason for the shift can be attributed to tireless work by our associations, including ARA, the Ontario Automotive Recyclers Association (OARA), and the Automotive Recyclers of Canada (ARC), with a bit of assistance from publications like Collision Repair magazine and

i’ve always been a big believer in the power of associations.

Executive Committee in recent years, notably and ably by Ed MacDonald of Maritime Auto Parts. Ed has just completed his term as President of the ARA, and will now move into the role of Immediate Past President. Given the way the system works, I’ll become President of the ARA in 2017 – 2018. One of the benefits of this system is that only one person in any given year is unexperienced (that would be me this year, folks). Since you start as Secretary, you always have a chance to observe how the other jobs are done. It’s a method that virtually guarantees that the ARA will always have a highly experienced Executive Committee. Those of us who have joined recently can learn from those with more experience, just as they themselves did just a few short years ago.

Power of Associations

I’ve always been a big believer in the power of associations. There was a time, not too long ago, when nobody outside of the industry used the term “automotive recycler.” We were junkyards or scrapyards. A few charitable souls would call us auto wreckers. While that may be closer to the 72 collision Repair collisionrepairmag.com

Canadian Auto Recyclers magazine, two periodicals that have been instrumental in helping to spread the word.

Strong Believers

Standard Auto Wreckers has been a proudly active member of ARA, OARA, and ARC for many years. It’s something we believe strongly in as a company. I grew up in this industry and I’ve watched it mature over the last two decades. I am so proud to be a part of this industry and I am truly lucky to now have the opportunity to help steer it into the future. I am also very proud to be in an industry that is so important to both the economy and the environment. I like to think that I have always been progressive minded in my own business and hope to bring that type of positive, forward thinking energy to my position with the ARA. CRM David Gold is the co-owner of Standard Auto Wreckers, with locations in Toronto, Ottawa, Port Hope, 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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last word

autosexism A positive environment starts at the top. By Mike Davey

here was a time when there were no women working in the collision business, but that’s because there was a time when no one was working in the collision repair business. As a business, it effectively didn’t exist. When an early motorist banged up their car, they took it to the local blacksmith. He’d hammer out the dents as best as he could and send you on your way. Even then, I suspect it was the blacksmith’s wife who made sure the business’s balance sheet totaled at the end of the month. Today, women are increasingly moving out of the office and onto the production floor. There has been some resistance to this, but in my experience it rarely comes from facility owners and managers. I’ve asked a lot of owners about this, and the

You’re probably one of the smart ones, though. You’re ready, willing, and able to hire anyone who has the right skill set and the right attitude. But is your shop ready? A good working environment is essential to retaining productive employees. A highproducing tech or painter isn’t likely to stay somewhere where they don’t feel welcome. Just like I’m sure that most owners and managers are fine with women working on the floor, I’m sure most of the folks in back feel the same way. The issue is that it really only takes one person to turn the atmosphere toxic. Bear in mind that the one person who is a problem may not even mean to be a problem. There may be no actual malice there. Nevertheless, you may have to take them aside and patiently explain why we don’t talk about our coworkers’ butts, even in a positive way.

the one person who is a problem may not even mean to be a problem. universal attitude seems to be that if you can do the work and do it well, then there is room for you in collision repair. Maybe, though, you’re one of the rare members of management who does have a problem with women working on the shop floor. You don’t need to worry if that’s the case, because I’ve got a solution for you, and it’s really simple: get over yourself. This isn’t a matter of right and wrong. Okay, maybe it is. But it’s also a matter of dollars and cents. Given the state of the labour pool, you simply cannot afford to be sexist. Maybe you don’t want to hire the bright young woman fresh out of school, the one whose eyes light up whenever she talks about autobody. That’s fine. No one can make you, and no one needs to make you. Your competitor down the street doesn’t have a problem, and he (or she) is going to snap her right up.

Be on the lookout for it, and be proactive. Don’t depend on your employees coming to you if they have a problem with another staff member. People don’t want to be tagged as complainers or whiners. They may prefer to grin and bear it … until the day they quit your shop, or leave the industry completely. I don’t think we can afford to lose good people. I’m not saying you have to mollycoddle women working in your facility, or treat them differently. Far from it. The best policy is to treat them just like you would any team member, because that’s exactly what they are. No more ... but certainly no less. CRM

74 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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