COLLISION REPAIR MAGAZINE Issue 15#1

S P O T L I G H T: T H E L E D A D V A N TA G E

CARROSSIER PROCOLOR

An inside look at Quebec’s largest repair network.

CUSTOMER SERVICE

Be a service star with these top tips.

LABOUR CRUNCH

Two repairers have found different solutions to sourcing skilled labour.

CONCENTRATED

EFFORT Frank Sottile is focusing his efforts on his home store of CARSTAR Brampton.

PLUS

Alex Sun of Mitchell on the future of software, the road to I-CAR Gold Class, repairers help their communities, and much, much more!!!

Volume 15, Number 1

l February 2016

l

$7.95

l

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

COLLISIONREPAIRMAG.COM

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CONTENTS

ON THE COVER

Volume 15 Issue 1, February 2016

40 NETWORKING FOR SUCCESS Frank Sottile is concentrating on his home store and home town of Brampton, Ontario.

FEATURES 45 COMMUNITY SUPPORT Carrossier ProColor has found success with community ties.

56 EXECUTIVE VISION Alex Sun of Mitchell on OEMs, predictive estimating and the power of data.

59 ROAD TO GOLD How to become I-CAR Gold Class, and why you should start the journey.

48

Light up your work with our look at the advantages of LED lighting systems.

NEWS 08 COLLISION REPAIR 62 TOWING & RECOVERY 64 RECYCLING

DEPARTMENTS 06 PUBLISHER’S PAGE by Darryl Simmons New year ahead!

50

Customer service can make or break your facility.

53

Two repair facilities have taken different approaches to solving the skilled labour shortage.

ON THE COVER: Frank Sottile of CARSTAR Brampton.

PHOTOGRAPHY BY CAMERON WATSON.

YOUR ONLINE SOURCE

Canada’s collision repair information resource.

New articles and top news stories daily.

Visit www.collisionrepairmag.com.

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

30 POINT BLANK by Sam Piercy Be tough.

32 PRAIRIE VIEW by Tom Bissonnette Moving on.

34 WHO’S DRIVING? by Jay Perry Magic pill.

36 TRAINING by Andrew Shepherd Knowledge focus.

72 RECYCLING by David Gold Commodity prices.

74 FINANCIAL VIEW by Jeff Sanford Consolidation continues.

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

FEBRUARY 2016 COLLISION REPAIR 05

PUBLISHER’S PAGE

NEWYEARAHEAD 2016 will be filled with challenge and opportunity.

By Darryl Simmons

F

rom all accounts there is no doubt that 2015 was a year of change in the collision repair industry. However, it looks as though 2016 will be even more, for the lack of a better word, interesting.

As we’ve all been warned from the famed fortune cookie philosophy, “May you live in interesting times.” Well, these are interesting times indeed.

The good news is, and there is a lot of good news, the industry has finally reached its natural state. That is, we probably won’t see a lot more shrinkage in terms of the number of shops. Just a decade ago there were more than 10,000 shops in the country. Now there’s prob-

There are a number of reasons for these record numbers. We’ve got low interest rates, relatively cheap gas compared to a few years ago and a fairly stable economy.

There’s also a lot of pent-up demand. The 2008 recession made a lot of people put off buying a new car. A stable economic picture means more people willing to purchase or finance a new vehicle.

This is unquestionably a good thing for the collision repair industry as the more cars on the road means more chances to repair those who had the opportunity to meet by accident.

Combined with the plethora of growing OEM certification programs, these record numbers emphasize the need to train

EARLY ADOPTERS ARE REAPING THE BENEFITS. ably about half of that. The biggest change in the past 10 years has been the penetration of network affiliation or MSOs (multi-store operators).

Big shops got bigger and the smallest of shops continued to eke out a living. The mid-sized shops felt the impact basically because the new cost of doing business involved heavy investment in equipment and training.

The early adopters are reaping the benefits with improved productivity, lean processes and well-trained staff in the back of the shop and in the front office.

Currently we are enjoying the thirdstraight record setting year for automotive sales in Canada. Manufacturers delivered a whopping 1.898 million vehicles in Canada last year. Auto sales numbers south of the border were sky-high as well.

Americans purchased 17.42 million new cars in 2015, surpassing the previous sales record set in 2015.

and maintain relationships. Not only are there new materials, but new processes.

Thankfully, the suppliers advertising in our pages provide a wealth of resources whether you’re looking for new equipment or training. These are the people who have a grassroots knowledge of what needs to be done today and can also provide a roadmap or blueprint for the future. Take advantage of them by calling them for advice.

2016 will be filled with many challenges and also many opportunities. Preparing a plan, carrying out that plan and being able to adjust to things that may impact your plans and actions are some things to consider as we start a new year. CRM

06 COLLISION REPAIR COLLISIONREPAIRMAG.COM

PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com EDITORIAL DIRECTOR MIKE DAVEY editor@collisionrepairmag.com ASSISTANT EDITOR ANNA DAVEY STAFF WRITER JEFF SANFORD jeff@collisionrepairmag.com VP INDUSTRY RELATIONS & ADVERTISING GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com DIRECTOR OF SALES & MARKETING ELLEN SMITH (416) 312-7446 ellen@mediamatters.ca PUBLISHER’S ASSISTANT AMANDA BELANGER amanda@mediamatters.ca COLUMNISTS & CONTRIBUTORS TOM BISSONNETTE, DAVID GOLD, JOSH KEGLEY, DYLAN O’HAGAN, JAY PERRY, SAM PIERCEY, RICK WALSH

SUBSCRIPTION One-year $39.95 / Two-year $64.99 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.

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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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THE FRONT END

PEOPLE ON THE MOVE So it turns out our boss is some sort of alien or something, and some other alien has seized control of his latest invention!

Yeah, and he said he was going to destroy the Earth!

From left: Marie-Claude Boudreault, Melissa Murphy, Josée Bélanger and Mary Jayn De Villers.

The Carrossier ProColor network has announced four new appointments to the head office team.

Marie-Claude Boudreault has joined the team as Administrative and Customer Service Clerk. A statement from the company says this new position will allow Carrossier ProColor to bring extra support to the team already in place. Boudreault will be responsible for various general administration duties as well as adequately referring customers in search of information.

Mélissa Murphy has been appointed Communications and Marketing Coordinator.

She previously held the position of Customer Service Agent. In her new role, Murphy will actively participate in the execution of the communications and marketing plan.

Murphy has been with Carrossier ProColor since 2011 and sources within the company say she has risen to her duties with great ease and expertise.

Mary Jayn de Villers has been appointed to the role of Communications and Marketing Director as part of the Marketing and Communications team’s reorganization. She has held the position of Communications and Marketing Coordinator for almost seven years. A statement from Carrossier ProColor says that since joining the company, she has successfully met the many challenges that have been entrusted to her: rebranding of the corporate image, communications and marketing plan, advertising campaigns, various corporate events for the network, as well as many other challenges she has been presented with.

Josée Bélanger has been appointed as Administration Coordinator. Josée has been employed by Carrossier ProColor since 2009 and has always been very rigorous in

the management of the Carrossier ProColor group’s accounting and bookkeeping.

For more information on the network, please visit carrossierprocolor.com.

Timothy P. Dawe has joined BASF Automotive Refinish as the new Sales Director for North America.

“Tim’s extensive experience and knowledge of the automotive refinish industry will enable him to immediately start to I need to phone home Yeah, me too. drive growth and say I’m going to be working late. for BASF and our distribuTimothy tion partners,” P. Dawe. said Paul Whittleston, BASF Vice President for Automotive Refinish & Industrial Coating Solutions in North America.

“This is a new position that will provide additional focus for our commercial team.”

Dawe has more than 30 years of experience in automotive refinish in positions of increasing responsibility, including international experience. Previous to joining BASF, he was in charge of China operations for a coatings company.

Ultra-efficent NitroHeat will cut your paint costs “We’re pleased that Tim by up to 35% while boosting throughput has agreed to join BASF as much as 20%. Call today! doing what he does best – g ro w i n g s a l e s , ” s a i d Whittleston.

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NEWS

CCIF ANNOUNCES 2016 STEERING COMMITTEE The Canadian Collision Industry Forum (CCIF) has officially announced its Steering Committee for 2016. The Steering Committee guides the establishment of priority areas for action and helps to ensure the continued success of industry events and projects.

Members of the Steering Committee represent all industry stakeholders, including collision repairers, OE manufacturers, insurers and suppliers. For more information, please visit ccif.ca.

Chairman: Joe Carvalho, Economical Insurance CCIF Steering Committee Members: David Adams, Global Automakers of Canada Trista Anger-Miklusek, CSN corporate Terence Bradimore, CK Collision Centre Larry Jefferies, CARSTAR Automotive Canada (past Chairman) Eric Léveillé, NAPA Tony Mammone, RBC Tony Sutera Sardo, RSA Patrice Marcil, Axalta Sandro Perruzza, Speedy Collision corporate Jennifer Steeves, Canadian Vehicle Manufacturers’

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Association Dave Stretz, CMD CARSTAR Group, Calgary, Alberta Tony Canade, Assured Automotive Koos Reineking, AkzoNobel Anita Zeitler, Crawford & Company (Canada) CCIF Administration Leanne Jefferies, AIA Canada Andrew Shepherd, AIA Canada

JERRY SNYDER OF JES SALES EARNS TWO AWARDS FROM SPANESI

Jerry Snyder of JES Sales demonstrating the Spanesi TOUCH Electronic Measuring System at an event at CARSTAR Vision Park in Hamilton.

Spanesi Americas recently recognized individual distributors for their contributions and accomplishments of 2015. Among those reco g n i z e d w a s S p a n e s i ’s distributor for Canada, Jerry Snyder of JES Sales, headquartered in Grimsby, Ontario.

Snyder has won two awards from the organization, one for dedicated service and the other for top sales.

Snyder’s two awards from Spanesi.

“We were very happy to recognize Jerry Snyder for his contributions to the Spanesi organization,” said Tim Morgan, Managing Director of Spanesi Americas. “Jerry and his organization were recognized for having the North American Top Sales during the first quarter of 2015. In addition Jerry was recognized with a Spanesi Service Award for his three years of service representing Spanesi in Canada.”

For more information, please visit spanesi.com.

NEWS

CSN-AUTOMACS COLLISION SHOWCASES REPAIR CAPABILITIES AT OPEN HOUSE

Some members of the CSN-Automacs Collision team at the open house event. The facility recently gained steel certifications for Audi and Volkswagen.

A chance to hear about the latest OEM approved methods is always sure to draw a crowd. That was certainly the case at the CSN-Automacs Collision Open House, taking place at the collision centre’s facility in Oakville, Ontario.

The event drew strong attendance from stakeholders in the insurance, collision and vendor sectors. Opening the evening, Adrian Ingoglia of CSN-Automacs Collision addressed the crowd that filled a good portion of the production space at the facility.

Ingoglia thanked the many staff members and partners who had helped CSN-Automacs Collision achieve Volkswagen and Audi certifications before introducing Scott Wideman of Volkswagen Group Canada.

Wideman discussed the certification process and outlined why a safe and quality repair to one of the Volkswagen Group’s vehicles relies on the right equipment, the right processes and the right

Norm Angrove of PPG was one of the speakers at the CSN-Automacs Collision event.

training. Wideman made use of a number of videos throughout his presentation, showcasing the materials currently being used in Volkswagen Group’s vehicles. These include not just aluminum and high-strength steel of a number of types, but structural carbon fibre.

This is a material most facilities are still relatively unfamiliar with in a structural capacity.

Norm Angrove of PPG stepped up after Wideman, congratulating CSN-Automacs Collision on its achievement and noting that to succeed in today’s marketplace a collision facility must be at the forefront of both technology and the ability to provide a superior customer experience.

For more information on CSN-Automacs Collision, please visit automacscollision.com.

FEBRUARY 2016 COLLISION REPAIR 11

NEWS

TRESCHAK ENTERPRISES MOVES TO EXPAND WAREHOUSE

HOUSING OFFICIALLY OPENS FOR NACE 2016

A view of the new warehouse being stocked. Treschak Enterprises had to move to a new location to expand.

One of central Canada's largest jobbers, Treschak Enterprises, has just announced it is moving to a new location. According to the company's owner and founder Don Treschak, the business has outgrown its old location and needed a new warehouse.

“We're doubling the square footage,” said Treschak in an interview with Collision Repair magazine. “Like our customers, we're on a journey. We needed a better facility to service them. We needed the space. This new warehouse is going to give us that.”

The new warehouse will be located just ten kilometres from the old one in Welland. Still situated in the Niagara peninsula region, the new home of the company is in the city of Fonthill, a quiet community just north of Welland.

“We have a Fonthill address, but a Welland phone number. We're right at the junction,” says Treschak. “After 34 years in business, this is our fourth move. At our last place, we kept taking up more space.

Eventually the landlord ran out of space. We had to move.”

Treshak Enterprises employs 22 people throughout the region. The company does business through Toronto and north of the city.

“My competitors come down here. We go up there. We need to stay competitive,” he says. “I guess we are one of the larger ones.

We’re strictly business-to-business now. We dropped retail a couple years ago.”

Back in June, Collision Repair magazine reported on the implementation of a pioneering new distribution system the company had installed. At that time Treschak Enterprises announced it was rolling out the industry’s first “pull” inventory management system for collision repair centres. In an interview with Collision Repair magazine at that time, Jamie Treschak of Treschak Enterprises explained how the new “lean” inventory management was a first in the industry. Known as a Mobile Depot system, the firm was outfitting supply rooms in collision centres with an Internet-connected bar-code system that allows technicians to self check-out items. Inventory is monitored over the Internet. When supplies are low, replacements are sent automatically before the shortages become a hindrance to productivity.

For more information, please visit treschak.com.

12 COLLISION REPAIR COLLISIONREPAIRMAG.COM

The Anaheim Marriott is the official Headquarters Hotel for NACE 2016.

There are also six other official hotels within walking distance of the event.

Feeling chilly? Maybe booking a trip to sunny California will help warm you up. Housing reservations are now officially open for NACE 2016.

The event takes place August 9 to 13 at the Anaheim Convention Center in Anaheim, Californa.

According to a statement from NACE show management, hundreds of rooms have already been booked. Show management recommends booking quickly if you want to reserve a room at the Anaheim Marriott, the officials Headquarter Hotel for NACE 2016. OnPeak is the official hotel partner of NACE 2016.

In addition to the Anaheim Marriott, there are six other official hotels: • Annabella Hotel • Best Western Raffles Inn & Suites • Clarion Hotel Anaheim Resort • Desert Palms Hotel & Suites • Hilton Anaheim • Red Lion Anaheim All of the official hotels are within walking distance of the event. In addition, co-located events will take place in the official hotels. With special show pricing, room rates range from $147 US per night at the Best Western to $178 US per night at the Hilton Anaheim.

Please visit the Hotels page at naceexpo.com for information or to register.

NEWS

UNI-SELECT GOES ON ACQUISITION DRIVE

teammates to its team.

“The additional nine stores integrate nicely with our current and growing network of corporate stores in British Columbia and Ontario,” says Gary O’Connor, President and Chief Operating Officer, Automotive Canada.

Uni-Select was also the best performing stock on the Toronto Stock Exchange (TSX) in 2015. Shares in the company were trading at just $30.37 on the first business

day of 2015, January 2. Just about a year later, on December 18, shares hit a new record high of $67.24. This is a gain of 121 percent, and outpaces the broad TSX Index by far. The company installed both a new CEO and a CFO, shed its debt and sold off some business lines. The sales have left the balance sheet in great shape.

Uni-Select is headquartered in Boucherville and its shares are traded on the TSX under the symbol UNS.

HOW COOL IS YOUR WELDER? Uni-Select appears to be on something of an acquisition drive. The company has announced that its subsidiary FinishMaster has completed the acquisition of substantially all of the assets of Aquia Auto Parts, doing business under the name Refinish Solutions.

Certain customary closing conditions had to be satisfied before the deal could go through, but Uni-Select has indicated that the conditions have been met and the acquisition will go forward as planned.

"Our success starts with our team, and our newest team members are trusted experts in their market, who will continue to drive business growth as part of the FinishMaster family," says Steve Arndt, President and Chief Operating Officer, FinishMaster.

Uni-Select has also announced that it has completed the acquisition of the rem a i n i n g 5 0 p e rc e n t e q u i t y i n t e re s t o f Colwood-Langford Auto Supply and the assets of B.H. McFarlane Automotive.

Colwood, a member of Uni-Select since 1994, has been a well-reputed wholesaler of automotive parts and paint products since 1970. Their team has served the market for over 45 years from eight locations on Vancouver Island and the Gulf Islands, British Columbia. The 85 professionals who contributed to building its reputation and position in the market now join the Uni-Select family.

B.H. McFarlane, a member of Uni-Select, has been a wholesaler of automotive parts and paint products since 1982. The company's team of professionals has served the market for over 30 years from one location in New Hamburg, Ontario.

Uni-Select is glad to welcome 15 new

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NEWS

CSN-CARLAW COLLISION HOSTS MIRACLE SYSTEM DEMO

Errol Cowan of Titanium Tools & Equipment (centre) demos the Miracle System for some of the staff at CSN-Carlaw Collision.

By Rick Walsh

CSN-Carlaw Collision in Peterborough, Ontario, recently hosted a demo of the Miracle System, manufactured by Star-co in Japan and available in Canada through Titanium Tools & Equipment.

Kevin Carlaw is the owner of CSN-Carlaw Collision. He says they see aluminum on a fairly frequent basis, so the equipment needed to repair it is a necessity.

“We have Mercedes vehicles coming in to us with aluminum doors, hoods and trunks,” he said. “Even the Dodge Avenger has an aluminum hood.”

The demo of the Miracle System was conducted by Errol Cowan of Titanium Tools & Equipment. He will also train the staff at CSN-Carlaw Collision in its use. The training is a vital piece of the process. The equipment, while necessary, isn’t enough.

“There will be more time required and a higher skill level needed for aluminum repair,” says Carlaw. “I’ve seen the Miracle System in use at another shop, so I knew it worked well.”

Titanium Tools & Equipment also carries Pro Spot’s full line of spot welders, pulse MIG's and steel and aluminum dent pullers, as well as Celette frame equipment and Wielander Schill special tools like Xpress 800. According to the company's President, Matthew Bannister, their speciality is equipment for OEM certification.

“We’ve got a complete package that we can provide to shops that want to make sure they’re ready for the future,” says Errol Cowan. “Repairing aluminum isn’t necessarily more difficult than repairing steel when you have the right tools, but it is different. That’s part of the reason we offer training as well.”

Cowan has done a lot of these demos over the last year or so, and he’s noticed that they tend to attract attention.

“They’ll generally have a few guys who are getting trained on it, but the demo draws a lot of other staff,” he says. “Very often I’ll see some of the younger people, who are working the wash bay or detailing, take a strong interest. They’re obviously interested in building up their skills, and they know that this is something they’re going to have to deal with as working technicians.”

For more information on Titanium Tools & Equipment, please visit titanium22.ca.

BOYD EXPANDS IN INDIANA

The Boyd Group has acquired two new collision repair centres in Lafayette, Indiana. The facilities previously operated as Twin City Collision Repair and have served the community for over 24 years.

"We are very pleased to add these thriving centers to our 13 other locations in Indiana," says Tim O'Day, President and COO of the Boyd Group's US operations. "They establish a presence 14 COLLISION REPAIR COLLISIONREPAIRMAG.COM

NEWS

in the central region of the state and are a great start to meeting our goal to grow single locations by six to 10 percent in 2016."

The acquisition follows news from the Boyd Group that it has completed the early redemption and cancellation of unsecured subordinated debentures. These did not fall due until December 31, 2017.

In other words, the company paid it off earlier than was strictly necessary. While the Boyd Group has not issued a statement as to why, this could be taken as a suggestion that the company is doing well and has plenty of money coming in.

For more information, please visit boydgroup.com.

GOOGLE EXECS TO KEYNOTE IBIS 2016

IBIS has announced that Richard Offermann, Industry Leader Automotive at Google, and Tanja Hufschmidt, Analytical Lead at Google Automotive, will deliver the keynote presentation at the IBIS Global Summit 2016, on May 23 to 25 at the Hilton Diagonal Mar in Barcelona, Spain. Collision Repair magazine is exclusive Canadian Media Partner for IBIS. Google is one of the largest and best-known companies in the world and the most visited website on the planet. To talk of Google is to talk in superlatives. With business interests in almost every sector

that technology touches, Google’s move into automotive and insurance was inevitable. Its power to disrupt, change and lead the future of our industry is incomparable.

Offermann and Hufschmidt will present in the keynote slot on the morning of the first day of the IBIS Global Summit conference. This year’s theme is “changing future landscapes” and few organizations are as well placed to cover this as Google.

IBIS has also announced two more sessions: Neil Atherton, Sales and Marketing Director at Autoglass, will be exploring the latest developments in Advanced Driver Assistance Systems (ADAS); and John Van Alstyne, President and CEO of I-CAR, will discuss the importance of people and training for the good of the collision repair. Both of these sessions tie into the IBIS principles of safety, skills and standards.

IBIS is possible thanks to the support of its partners, the ranks of which have recently been strengthened by Belron. Every week Belron completes 110,000 mobile jobs worldwide in 34 countries across five continents. Belron is in good company, joining IBIS partners 3M, AkzoNobel, Audatex, EMM, Enterprise Rent-A-Car and Fix Auto World, without which IBIS would not be possible.

IBIS Global Summit tickets are £1,795 (approximately $3,699 CAD) and include full access to the Welcome Reception on May 23, access to the full day’s conference, including lunch and breaks, on May 24, the International Dinner on the evening of May 24 and the final half day’s conference and delegates’ lunch on May 25. The price also includes two nights’ accommodation (May 23 and 25) at the conference venue, the Hilton Diagonal Mar. To confirm your place, email Nicola Keady Nicola@ibisworldwide. com, call 00 44 (0)1296 642826 or visit ibisworldwide.com.

FEBRUARY 2016 COLLISION REPAIR 15

NEWS

CES SHOWS OFF SELF-DRIVING TECH, BUT SURVEY SAYS CANADIANS STILL WARY

Ford has announced it will add 20 Ford Fusions to its autonomous vehicle testing fleet, making it the largest self-driving fleet of all automakers. The company has also recently announced that it has begun testing AVs that can handle snow.

The quest for fully autonomous vehicles continues, with major announcements coming out from a number of automakers at the Consumer Electronics Show (CES) regarding their autonomous vehicle (AV) technology.

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16 COLLISION REPAIR COLLISIONREPAIRMAG.COM

Ford announced that it would add 20 more AV-equipped Ford Fusions to its existing fleet being tested in Michigan, California and Arizona. Mark Fields, Ford’s CEO, pointed to the five stages of autonomous driving developed by the Society of Automotive Engineers, and noted that his company has now reached the fourth stage. This means the vehicles are capable of all aspects of dynamic driving, even if a human does not respond to the vehicle's request for driver intervention. In other words, a stage four AV can drive on its own, and make decisions if it decides you're not going to do what's needed. The fifth stage is when vehicles are fully autonomous in all weather conditions that a human driver could handle, and widely available to consumers.

Ford recently announced they have begun testing AVs in the snow. The University of Michigan said they have conducted what they believe are the first tests of autonomous vehicles in wintry conditions. The automaker and university tested the vehicles in Michigan and on the university’s 32-acre Mcity simulated urban environment, noting in a statement that typical autonomous vehicle sensors are useless on snow-covered roads.

Ford and Toyota have also announced that they will use the same software, SmartDeviceLink, to link smartphones to screens on the vehicle’s dashboard. The software was developed by Ford.

“Using the most advanced technology and expanding our test fleet are clear signs of our commitment to make autonomous vehicles available for millions of people,” says Raj Nair, Ford Executive Vice President, Global Product Development, and Chief Technical Officer. “With more autonomous vehicles on the road, we are accelerating the development of software algorithms that serve to make our vehicles even smarter.”

There seems to be little question about whether or not car makers are ready for driverless cars. They’ve done the research, developed technology and tested it repeatedly. There’s still a question as to whether or not drivers will be willing to take their hands off the wheel. A new survey released by Kanetix reveals that Canadians in particular may not be ready to cede control to their automobiles.

"With companies like Google and major auto manufacturers obtaining permits to test autonomous technologies, these vehicles could be a reality in the next few years," said Andrew Lo, Chief Marketing Officer and Tech Expert at Kanetix.ca. "While it is fun to imagine the possibilities these innovations present, we wanted to find out from Canadian consumers how they truly felt about the possibility of sharing the road with self-driving cars."

The survey found that Canadians are split into three groups on the issue. About one-fourth would buy one if the technology was available, another one-fourth say they won’t, and the remaining 50 percent of the people surveyed say it would depend on the technology and how well it works before they would make a decision.

In terms of geography, Western Canadians are the least likely to want the driverless car with Quebec and Ontario being the most enthusiastic. We have to wonder if population density, and hence traffic conditions, might play a part in this.

There are also differences among age and gender. Almost twice as many males as females want driverless cars, and the younger demographic, age 18 to 34, are the most excite about the possibility.

An overwhelming majority of Canadians say driverless cars will be safer. Fifty-one per cent believe there will be fewer accidents, and 61 per cent think the elimination of risks like speeding and drunk driving will be the among the best outcomes of driverless vehicles.

1/7/16 1:52 PM

NEWS

NEW REPORT RECOMMENDS NATIONAL WORKING GROUP ON DISTRACTED DRIVING The Traffic Injury Research Foundation and The Co-Operators have released a new report on distracted driving across Canada.

The Traffic Injury Re search Foundation (TIRF) and The Co-operators have released Distracted Driving in Canada: Making Progress, Taking Action, a report that provides a snapshot of activities underway in Canada to reduce distracted driving.

Based on an enviro n m e n t a l s c a n T I R F completed in partnership with Drop It and Drive (D.I.A.D.) earlier this year, it identifies the need for a national action plan to combat the problem and recommends the creation of a National Working Group on Distracted Driving that can work with a diverse set of stakeholders to develop such a strategy.

In the months ahead, TIRF will take the lead on creating the working group, with the ongoing support of The Co-operators. The report contains the results of an environmental scan and compiles statistics, recent initiatives and lessons learned about distracted driving strategies throughout the country, to establish a solid foundation upon which future activities may be planned and coordinated. It examines five main areas of focus: provincial and territorial government approaches to understanding and addressing the issue; enforcement strategies and outcomes; data collection and measurement; education and awareness campaigns; and legislation.

“The rapid pace of activity in response to this issue is unprecedented. Work is being undertaken on multiple fronts, both across jurisdictions and across sectors, to increase knowledge, track outcomes and identify solutions,” said Robyn Robertson, president and CEO of TIRF. “Increased coordination and sharing of these activities can help to maximize the results of our collective efforts.”

The report revealed that a primary emphasis was placed on improving data collection, and raising awareness and educating Canadians about distracted driving. In addition, there was a high level of coordination of activities within individual jurisdictions.

Nevertheless, the problem of distracted driving persists. In fact, the research revealed that distracted driving is a significant contributor to crashes that is comparable to impaired driving in several jurisdictions. The report concluded that distracted driving is widely considered a top priority by provincial and territorial gov-

ernments across the country, which have implemented a number of measures to begin to address the problem.

Researchers, non-profit organizations, industry professionals and media are equally engaged and working to strengthen efforts using complementary approaches. Yet there is a gap in specific mechanisms to facilitate coordination across groups of stakeholders, and efficient exchange of information and outcomes at the national level.

“Because distracted driving is still an emerging issue, and one that falls under provincial jurisdiction, bringing together stakeholders to help develop a strategic plan at a national level will be very valuable work,” says Kathy Bardswick, President and CEO of The Co-operators. “The information in this report will serve as a resource for the National Working Group on Distracted Driving as well as decision-makers across the country who share our concern for road safety.”

TIRF will be working closely with D.I.A.D. in early 2016 to form the National Working Group and engage its members in the development of a national action plan. Distracted Driving in Canada: Making Progress, Taking Action is based on information collected from a broad cross-section of stakeholders from all three levels of government, police departments, insurance companies, health care institutions, non-governmental, academic and community organizations.

WIN to celebrate 10th anniversary at 2016 Educational Conference in Tampa Women’s Industry Network (WIN) has announced that the 2016 Educational Conference is scheduled to take place in Tampa, Florida from Monday, May 2 through Wednesday, May 4, 2016. The event will mark the 10th Anniversary of WIN and the Educational Conference.

In addition to a comprehensive lineup of professional development programming, the Educational Conference will feature the Most Influential Women awards as part of the celebratory gala dinner, as well as the Annual Scholarship Walk fund raising event. Program specifics will be published as they become available.

Wendy Rogers, one of WIN’s 2016 Conference co-chairs, articulated that this year’s event “... will provide a look back and forward at the continuing opportunities for success of the Women's Industry Network and its members.”

The Hilton Tampa Downtown will be WIN’s home during the Conference. The hotel is situated near the Tampa Convention Center and is located within walking distance of several city landmarks. According to a statement from WIN, the Hilton’s extensive meeting space will provide the perfect place for attendees to acquire knowledge and inspiration during the two-and-a-half day event.

“The 2016 WIN Educational Conference marks the tenth year of successful collaborations among WIN volunteers, members and sponsors. One of our early Educational Conferences was held in Orlando, so this 10th Anniversary is the perfect time to return to Florida and reflect on how the WIN network has grown and been enriched during this decade,” says Denise Caspersen of National Autobody Parts Warehouse, who also serves as WIN’s Chair.

For more information about the Conference, becoming a WIN member or sponsor, or to learn more about WIN programs and events, please visit womensindustrynetwork.com.

FEBRUARY 2016 COLLISION REPAIR 17

NEWS

B-TEC Systems introduces high speed dryer for spray outs The new B-TEC ST-01 Paint Sample Dryer.

B-TEC Systems has introduced a high speed dryer for spray outs, the ST-01 Paint Sample Dryer. According to the company, the unit is designed to produce rapid drying of both waterborne basecoats and urethane clears and single stage coatings.

The ST-01 can use infrared, air movement or both to obtain a fast drying result. A statement from B-TEC Systems says that before its launch, the ST-01 Paint Sample Dryer was tested on high performance waterborne basecoats and achieved drying results in as little as 90 seconds, with clear coats reported to be curing in only three minutes.

Peter Phillipson is Technical Sales Manager for B-TEC Systems’ Infrared Program and was in charge of the testing.

“Obviously, our main infrared offerings are the mobiles, but this little unit certainly compliments the range. The better body shop pros like to see a fully dried/cured spray out for colour matching purposes,” Phillipson says. “Sometimes a difficult colour can add hours to a job.

Time is money as they say and the ST-01 Paint Sample Dryer certainly keeps dry times down to the absolute minimum."

For more information, please visit bteccleaners.com.

Martech launches Best Buy Filter Kits Martech Services Company has launched the Best Buy Filter Kit, containing enough filters for an entire year of filter changes.

Martech Services Company has launched a new product to make life easier for users of the company’s Quality Air Breathing Systems. The new Best Buy Filter Kits are available for various models and include enough filters for one year of filter changes according to the company’s recommended schedule.

According to Tom Wright, Director of Sales and Marketing for Martech Services Company, it is imperative for proper breathing

system maintenance that filters are replaced on a regular basis. Each product has a recommended filter change schedule. Failure to change filters as necessary may result in permanent damage to the product.

More importantly, it can cause serious illness or injury to the user of the product.

For more information, please visitbreathingsystems.com.

The Review Engine from eMarketing Sherpas

In a world where reviews are just a click away, managing your businesses reputation is more important than ever. With this in mind, eMarketing Sherpas has announced the launch of The Review Engine, an online review and reputation marketing system specifically designed for the automotive industry.

"Our team is very excited to make The Review Engine available to all automotive businesses in North America,” says Frank Terlep, founder of eMarketing Sherpas. “We have spent the last two years researching the online review and reputation space while testing The Review Engine in hundreds of businesses."

According to eMarketing Sherpas, The Review Engine automates the entire review and reputation marketing and management process for individual locations as well as multi-location organizations by integrating with more than 100 review and social media sites and using email, text messaging, social media, websites, QR Codes, point of sale materials, automated notifications and other methods to make it as easy as possible for consumers to review and recommend the business.

The Review Engine automatically monitors more than 100 online review and social media sites for any positive or negative customer reviews and posts and sends daily alerts to the business and its management team. The Review Engine also has a multi-location dashboard to allow staff to manage online review and reputation marketing from anywhere.

The Review Engine also includes a Net Promoter Score (NPS) system that captures and measures NPS scores and sends a notification if a response falls below a previously set NPS threshold.

The Review Engine comes with a money back guarantee. According to a statement from eMarketing Sherpas, if a business follows the company's recommended processes and The Review Engine does not help the business generate more online reviews and make it easier to manage its online reputation, the business will receive a refund of up to six months of its monthly subscription.

Please visit thereviewengine.com for more information.

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NEWS

UNLOCKING THE CONCEPT OF DIMINISHED VALUE The first Guild 21 conference call of the new year featured Kevin Gardiner of Auto Club Enterprises. He unpacked the concept of diminished value (DV) for listeners and warned that small claims courts cases involving the concept are on the rise in the US. While the term is widely used outside of the auto claims economy for a variety of things, in collision repair and auto insurance it usually refers to the value of a vehicle after repairs are completed. What is a car worth after it has been repaired and returned to the customer? This value can be controversial.

“This is a controversial topic. People are on one side or the other. I'm going to do the best I can to walk the middle line,” said Gardiner. There are three different classes of DV: repair related diminished value, claims or insurance related diminished value and inherent or perceived diminished value.

The first class relates to less than perfect results on the part of the repair facility (for example, if the paint on the repaired body panels does not match non-repaired panels).

The second type of DV relates to claims or insurance related diminished value. This claim of DV often hinges on the insurer disallowing certain items, such as new OEM parts.

Both of these are relatively well known, but it’s the third class of DV that is the one being argued in more court cases these days: the consumer’s perception that a repaired vehicle is not as valuable as a vehicle of the same year, make, and model which was never damaged, no matter what the quality of repair. Everyone in the industry has dealt with this client: the repair on the car is cosmetically perfect, and the safety features and structural integrity of the vehicle have been maintained. Still, the client worries about future sale value and demands to be compensated, typically by the insurer.

“Many people have a sense that the tradein value of a car could be reduced. What is the loss there going to be? This is where many claims against insurance companies come from,” said Gardiner, noting the claims of diminished value come up even if the parts used are newer than those replaced. Consumers still sense a loss of value.

“This often comes up around aftermarket parts. Insurance companies use these parts.

But this leaves a perception of less value from owners,” says Gardiner. He went on to explain that “property damage” claims for DV claims appear to be on the rise. “Demands for these suits appear to be increasing,” he said.

Not only that, small claims courts in the US are actually awarding money to claim-

ants and plaintiffs. There are even online appraisers now who charge up to $750 to provide a Diminished Value Report.

“When I go to conferences I hear that these claims are coming up more and more.

For that $750, these appraisers are helping the consumer. Maybe sending a letter to the insurance company or lawyers. They're guiding consumers through the claims process. So that's something to be aware of,” said Gardiner.

What can be done to counter DV claims?

It is important to understand how courts are handling these types of claims in your market.

For repairers, it’s important to ensure that quality control procedures are in place and to measure results. Expect your work to be scrutinized, and engage customers in the vehicle repairs and repair warranty.

Going back up the chain, OEMs need to partner with quality repairers, and understand how claims for diminished value can impact future sales and the overall customer service experience, according to Gardiner.

FEBRUARY 2016 COLLISION REPAIR 19

REGIONAL NEWS

British Columbia CSN-Superior Collision donates to help family in need CSN-Superior Collision recently refurbished a Cadillac as part of the Acoat Selected Benevolence Program. The car was given to Nicole Beaumont during a special presentation at CSN-Superior Collision.

Kirmac expands in Richmond with second location The new Kirmac location in Richmond.

Kirmac Collision & Autoglass is excited to announce the opening of its second location in Richmond, British Columbia. The latest addition brings the total number of Kirmac stores in British Columbia to 16.

A 42-year-old BC family owned and operated auto body and glass repair company, Kirmac now operates 16 repair centres throughout the Metro Vancouver area.

CARSTAR SURREY (2000 AUTO COLLISION) JOINS CARSTAR’S NETWORK CSN-Superior Collision in Sidney, British Columbia, restored and gifted a Cadillac to a local working mother who will be able to use the car to get to work. The giveaway is run in partnership with Acoat, which is a division of AkzoNobel. The company runs the National Benevolence Program, which helps local community businesses to give back to the community they live in.

More than 40 members of the local business community in Sidney pitched in to offer insurance, tires, parts and mechanical services. The work on the car was done at CSN-Superior Collision.

Fix Auto adds Fix Auto Pemberton to network in BC Fix Auto Pemberton.

Peter Polito, General Manager, Fix A u t o We s t e r n Canada, has announced the addition of new strategic partner Fix Auto Pemberton, British Columbia, to the network.

Tim Watt, owner-operator of Fix Auto Pemberton, is a seasoned collision repair professional with 29 years of experience in the industry and four years as a shop owner. He explains that Fix Auto’s "think global, act local" philosophy was a deciding factor in joining the network. Laura Fordyce, Fix Auto Pemberton owner-operator adds: “Fix Auto is a family-oriented company with a vision similar to ours. Also, Fix Auto has a seat at the insurance table, a distinct and recognizable brand and is experiencing significant growth in the industry. Our shop has a family-owned feel, but we now offer our clients all the benefits of a banner network."

Khuong Nguyen and David Franklin, owners of CARSTAR Surrey (2000 Auto Collision).

C A R S TA R h a s a n n o u n c e d t h e opening of CARSTAR Surrey (2000 Auto Collision) as the latest collision facility to join the expanding CARSTAR network in British Columbia.

Owners David Franklin and Khuong Nguyen have 56 years of combined collision repair experience and have both earned reputations for ensuring customer standards are both met and exceeded.

CARSTAR Surrey (2000 Auto Collision) is a long-standing ICBC accredited Valet collision repair facility. The business employs a staff of 10 and is regularly involved in Vietnamese charities in the Surrey area.

Fix Auto – The Miller Group gives family in need new wheels Noelani Dreger, her sons Gaberial and William, and some of the team from Fix Auto Abbotsford who helped get Dreger into a refurbished Nissan Altima in time for the holidays.

Employees and the owner of Fix Auto The Miller Group in Abbotsford, Chilliwack and Vernon recently made a significant contribution to a family in need in their community. For the tenth year in a row, Fix Auto Abbotsford East and West partnered with Abbotsford Nissan to refurbish a vehicle for donation.

A Nissan Altima was donated to a single mother of two sons, one of whom suffers from heart problems. Her new vehicle will eliminate the need to spend 10 to 12 hours a day on the bus to take her son to Children’s Hospital in Vancouver.

20 COLLISION REPAIR COLLISIONREPAIRMAG.COM

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15-06-17 2:39 PM

REGIONAL NEWS

Alberta Craftsman Collision steps in to right wrong in Calgary graffiti episode Harj Bharaj, manager of a Craftsman Collision centre in Calgary, recently donated his services to restore a van that had been vandalized by racist graffiti.

“I saw it on the television. That's not right what they did. Basically, we just stepped in and do the right thing,” said Bharaj. “No one deserves to be treated like that. It was just the right thing to have to deal with that. I'm not a political kind of person. But if I can help someone, I will. I called up the insurance company, Intact, and said I cannot charge this guy.”

Police have since charged Kyle James Mackenzie and Miguel Laverne with six counts of mischief relating to the incident.

CARSTAR CANADA EXPANDS WITH TWO NEW LOCATIONS IN ALBERTA

CARSTAR Red Deer South was designed and built to work in conjunction with the existing CARSTAR location in Red Deer.

Deer locations pride themselves on being best in class operations with an eye on sustainability, and both locations operate in a team based environment and see that as a competitive advantage in the future.

“We understand that the industry is constantly changing and feel that we are now more prepared for the future,” says Warrian.

CARSTAR Red Deer supports many local initiatives including the local chapter of Cystic Fibrosis Canada, the Red Deer Boys & Girls Club, the Red Deer Christmas Bureau, and several youth sports teams.

Cochrane Collision expands along with city of Cochrane Greg Archibald and Kevin Brown, owners and operators of Cochrane Collision.

The exterior of CARSTAR Ellerslie.

CARSTAR Automotive Canada has announced the addition of CARSTAR Ellerslie located in Edmonton, Alberta and CARSTAR Red Deer South in Red Deer County, Alberta.

A statement from CARSTAR says the new CARSTAR Ellerslie 20,000 sq. ft. collision centre will be the largest in the Edmonton and surrounding area. Built to reduce its environmental footprint, the centre features LED lighting, a paperless office and internet controlled air quality systems. CARSTAR Ellerslie is owned by Johnny Kloeckes, Anton Wootliff, and Ming Xu. CARSTAR Red Deer South is a brand new 9,000 sq. ft. facility that was built and designed to work in conjunction with the existing CARSTAR location in Red Deer, located in the Downtown Business Area.

The owners of CARSTAR Red Deer South are Darryl Hemstreet and Brian Hemstreet along with Darren Warrian.

“Red Deer continues to be a strong and thriving western Canadian city and timing was finally right for us to expand,” says Hemstreet.

“Our new location will work closely with our existing location to make sure that we are providing the highest possible service to our insurance partners.”

A statement from the company says that both CARSTAR Red 22 COLLISION REPAIR COLLISIONREPAIRMAG.COM

Cochrane Collision, located in Cochrane, Alberta, is expanding, even as the province finds itself in an economic slump, helped along by an expanding city that has turned their former industrial zone into a thriving downtown.

Over the last two years, a new addition that doubles the size of the shop has been added. The outside of the shop has been redone and modernized, in part to help it fit in with local buildings. Inside, there is lots of new equipment including aluminum facilities, a new Pro Spot welder and rivet guns.

Cochrane Collision is owned and operated by Kevin Brown and Greg Archibald. Yhe history of the facility goes back 25 years. The duo bought the shop about six years ago and have focused their efforts on making sure that Cochrane Collision is ready for the future.

“We’ve serviced the town since 1985, and for the past few years we’ve been thinking ahead,” said Brown in an interview with Collision Repair magazine. “We’ve been busy.

We’ve doubled the size of the shop recently. We’re now big enough to handle anything that comes our way.”

neWs REGIONAL NEWS

MITCHELL PEDDIE: 1984 - 2015

Saskatchewan it is with great

nationwide auto glass. “his family and friends and family, as well as his colleagues and cusare grieving, but i also know that his customers tomers. he is survived by his parents, Tom sorrow that we are profoundly saddened by his loss. he was the and carmen, his sister katie ann peddie, announce the sort of guy who would go out of his way to help his in-laws mario boucher and linda oulunexpected a customer, even at great inconvenience to himlette, and his wife, noemi boucher. boucher passing of self, justCAA because he could. Thehas world is a poorer was pregnant with their child at the time of mitchell peddie.Collisions in SaskatchSaskatchewan announced place forscholarships his passing.”are available for students mitchell’s passing, mitchell workedewan have fallen to theand has since delivered The planning memorial to service took place at the a healthy boy, anthony mitchell philip for nationwidelowest level inbaby at least attend Saskatchewan Mitchell Peddie. perrin funeral chapel on Thursday, september born on sunday september 20, 2015 at 7:16 auto glass andsix years.

Saskatchewan Polytechnic and study the automotive 10. donations p.m. anthony weighed in at 7.1 lbs. was responsibleGovernment Insurance trades. to the heart & stroke foundation in mitchell’s memory be greatly waswith liked and respected by evfor the north bay sudbury market in on-collision“mitchell (SGI) records showand that there were 127,585 claims filed A total of $5,000would has been alloappreciated thethese family. eryone who knew him,” says howard berg of tario. he willinbe2015. greatly missed his friends the insurers Data from by before 2010 is not available, but that catedbyfor scholarships. Half of year there were 130,491 collision claims filed with SGI. those funds are earmarked for students Every year in between 2010 and 2015 had a higher number of studying the Auto Body Technician program at the Wascana Campus in claims, with 2013 occupying the top position.

Regina. The rest is allocated between the Automotive Service Technician olation of section 1 (Palliser of the Campus) shermanand antitrust act, a usCampus). federal us district gregory a. presnell has dismissed the last of the • 2010:Judge 130,491 programs in Moose Jaw Saskatoon (Kelsey law prohibiting business activities deemed to be anti-competiclaims in the second amended complaint in a case that started when • 2011: 136,342 Applications for the CAA Scholarships at Saskatchewan Polytive. complaints 14 Saskatchewan other lawsuitsMembers brought and by collision repair a group of 20 collision repair facilities in florida fi led an antitrust • 2012: 134,434 technic are open toinCAA non-members. facilities and association that alleged that insurance action against a group comprised of 39 insurance companies. The • 2013: 144,438 Applicants are an evaluated on academic excellence, economiccompaneeds niesother havefactors, conspired to suppress labour in violation of the case•was originally 2014: 132,400filed in february of 2014, and gathered support and including participation in rates extra-curricular activities sherman antitrust act andThe numerous state including laws were from•other 2015:groups 127,585of repairers outside florida, leading to similar or community involvement. scholarships, thedismissed selection bysuccessful Judge presnell in august, following a through recommendation by us class actionanlawsuits. later request wasingranted by the Judicial It’s been unusually dry,awarm winter Saskatchewan, which of candidates, are administered each educational magistrateThe Judge Thomas are b. smith. panelhave on multidistrict consolidate these suits. may lowered the litigation number of(Jpml) claimsto reported in 2015.

However. institution. scholarships part of the CAA Saskatchewan Cenin dismissing the second amended complaint, Judge presnell The original a&e auto body,ofinc., et al.

21st cenSaskatoon sawsuit, seven centimetres snow fallv.on thecentury city in just a tennial Merit Scholarship, which was established in 2006. noted that the fact that some of the defendants named were the not tennial insurance company, et al., alleged that that automobile couple of days in early January, so it’s possible that 2016 may show More information and application forms are available through willing to pay and moreAwards than what state farm was paying does not, in and insurance companies higher overall numbers. attempted to suppress the reimbursement Scholarships page at saskpolytech.ca. of itself, contravene the sherman act. rates for collision repair orders, and claimed that this was in vi-

Collisions in Saskatchewan at lowest level in six years

CAA Saskatchewan offers collision repair scholarships

Judge dismisses remaining claims in US anti-trust case

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REGIONAL NEWS

Manitoba

MPI to open a new advanced materials training centre The province of Manitoba is taking a proactive approach to training on new materials. Manitoba Public Insurance (MPI) has just announced a major initiative that will ensure techs know how to repair the new and advanced materials coming into use in the industry.

MPI has announced it will build a new facility dedicated to training collision techs how to repair advanced body materials such as aluminum, carbon fibre and high strength steel.

The new state-of-the-art facility will be located within MPI’s existing Physical Damage Centre in Winnipeg. The new school will enable qualified technicians to share and teach the newest auto body repair techniques and technologies. As more vehicles incorporate these new lightweight materials, the creation of this new school ensures that the province’s collision repair sector can handle repairs on next-generation cars.

Gord Mackintosh, the provincial minister responsible for MPI, is aware of the big trends in the collision repair space. On hand to announce the forthcoming Centre of Excellence, he indicated an understanding of the trends in the industry.

“With an eye to the future, we all recognize that the auto manufacturing industry is going through significant change. The auto body repair industry must keep pace for the sake of its customers,” said Mackintosh. “This is an entirely a new tool set, so

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now we’re able to keep up and actually get ahead of the new materials that are being used for the vehicles that are on the roads of Manitoba.”

That depth of understanding looks good on the minister and on the province. Clearly, MPI recognizes the importance of this sector to the overall economy. “The new research and training centre provides an excellent opportunity for Manitobans to pursue highly skilled careers and ensures there is the capacity to do cutting edge auto body work in Manitoba, helping to keep Manitoba’s auto insurance rates amongst the lowest in Canada,” said the minister.

The new facility will be rolled out “over the next few months.”

The target date for completion is 2017. The centre will also be tasked with creating “body apprenticeship opportunities and fostering partnerships with Apprenticeship Manitoba, Red River College and Manitoba high schools.”

MPI officials noted the duty of the organization to ensure that the auto body technicians in Manitoba remain highly skilled and able to repair the latest materials. The press release announcing the opening of the facility noted the use of lightweight materials in the 2013 Dodge Dart, 2015 Ford F150 and various BMW models.

“It’s expected that by 2018, half of the Manitoba fleet will represent vehicles with at least some complex materials. The auto body repair industry is going to experience significant changes in terms of its repair techniques, the need for special tools and body shops,” said Dan Guimond, CEO and President of MPI. “Manitoba Public Insurance recognizes that the auto manufacturing industry is creating significant change for the auto body repair industry and costs of repairs are increasing, which is why we are taking steps to save Manitobans money over the long-term.”

The centre will also collaborate with the Automotive Trades Association, the Manitoba Motor Dealers Association and the Manitoba Commercial Vehicle Repair Association to offer improved training for workers in the collision repair space. That the entrance of advanced body materials is getting the attention of provincial governments bodes well for the health of the auto body repair sector in the province.

“We recognize the importance of auto body repairers staying abreast of new vehicle design, construction, technology and repair techniques and partnership with MPI is an innovative learning approach to meet the high demand for skilled employees throughout the industry,” said Paul Vogt, President and CEO, Red River College. “In addition to the academic outcomes, joint research studies between Red River College and Manitoba Public Insurance with composites and advanced trades techniques will ensure the completion of safe and reliable vehicle repairs by auto body repairers in Manitoba.”

“This new Centre of Excellence will ensure Manitoba Public Insurance and the Manitoba collision repair industry can keep up with the rate of change for vehicle technology and continue providing the highest levels of customer service to Manitobans,” said Guimond. “The facility will enable highly-skilled professionals to perform research and training on new vehicle design, repairability and technology, while also delivering training for the collision repair industry in Manitoba, and perhaps beyond.”

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Ontario

New vehicle storage regs for Ontario will come into force July 2016

New regulations regarding vehicle storage are coming into force in Ontario in July of 2016.

The new year is here and it’s set to bring some regulatory shifts.

In Ontario, operators of collision repair facilities will be dealing with changes to the laws around vehicle storage. The new regulations are designed to eliminate overcharging for vehicle storage and make it easier for vehicle lien holders to find out that the vehicle is in storage in the first place.

This past year Ontario MPPs passed Bill 15 in Ontario, which is a wide-ranging piece of legislation that will have the greatest impact on the towing sector.

However, the new towing regulations do not come into effect until 2017. The new rules regarding storage will come into force on July 1, 2016.

The rule changes will also have consequences for collision repair centres in that there are changes coming to the way clients can be charged for vehicle storage. The days of some operators charging unnecessary and outrageous fees for keeping a car on the lot, retrieving something from a vehicle or moving other cars to let a blocked one out are over, according to experts. The new rules remove the possibility of an operator of what is supposed to be a collision repair facility basing the business around storage fees.

“The new rules are expected to improve storage practices and remove associated costs from the auto insurance system,” according to a press release put out by the Ontario Ministry of Government and Consumer Services, which developed the new regulations. What this means in practice is that deceptive procedures that have long tarnished the name of legitimate collision repair facilities are being wrung out of the industry.

“We’ve seen these kinds of stories before. These are the kinds of places where, out front the sign says ‘collision repair,’ but the business is really about storage. These are the places that can't make money on the collision work. No one will give them that work. So they try to make money off of storage,” says John Norris, Executive Director of Collision Industry Information Assistance. “The fees for coming in and getting your keys out of car. Or $60 bucks to move the vehicles blocking you in, that kind of thing ... that's gone.”

26 COLLISION REPAIR COLLISIONREPAIRMAG.COM

Norris was a member of the panel which helped the Ontario Ministry of Government and Consumer Services formulate the new rules, and had a hand in developing the new regulations. He suggests this is going to be good for the industry as a whole.

“The majority of shops are not in the storage business, and don't want to be in the storage business. Some will charge different amounts for indoor or outdoor storage. Some will charge for storing a car after the work is done. But that is about managing a shop that's doing real repair work, where space is at a premium. The shops that are just charging as a way of doing business, there's going to be no more of that,” he says.

We’ve all see media reports of people overcharged massive amounts of money for vehicle storage, Recently, the CBC ran a story about a motorist who was charged $8,000 for two days storage. Getting rid of these practices will help raise the image of the industry, or at least prevent the unscrupulous from tarnishing it.

“The ones running a legitimate shop, I don’t think they're going to see any challenges here. Someone who comes to the door and says, 'I left my prescription or the kid's glasses in the car' and then gets charged for that, or who gets charged for moving cars blocking another car in, this is going to cut down on that. Legitimate operators won't have a problem with this,” says Norris.

Another of the changes contained within the act is that, starting July 1, 2016, anyone receiving a vehicle without the permission of the owner and planning to put a lien on the car must tell the owner within 15 days. Right now, the storer has 60 days.

“This is going to be a big change for some. Right now, if you've got a car in your lot, and you just want storage fees, you don't tell anyone. It's there until the end of that period. At 61 days you have to let the owner know it's there. Sometimes, if the car is owned by a leasing firm or a bank, by that time the storage fees are so high, they just let it go. It's not worth it. It doesn't happen frequently, but it happens. The new rules will change that period to 15 days,” says Norris.

As someone involved in the development of the bill, Norris notes that there was some discussion and the possible creation of a computer database to track stored cars.

“There is some talk about a database, where everyone who stores a car has to register it digitally. That way leasing companies would know immediately where it is,” says Norris. “That isn't part of this bill.

But that could be coming.”

REGIONAL NEWS

Quebec All three Carrossier Marc Pilon shops earn top environmental certification

Carrossier ProColor to sponsor Tournée de films chasse & pêche 2016

Carrossier ProColor has announced that three of the network’s facilities have earned the Gold certification from the Clé Verte program. The three facilities, Carrossier ProColor Trois-Rivières, Carrossier P ro C o l o r Tro i s R i vières Ouest and Carrossier ProColor Cap de la Madeleine, are all owned by Marc Pilon, forming Carrosseries Marc Pilon.

The Clé Verte program is an environmental certification awarded to automotive service centres in Quebec who have developed procedures and exemplary standards for recovery, recycling and remediation of residual and hazardous materials. The Gold level is the highest level that can be achieved.

Protecting the environment is not a new concern for the members of the Pilon family. Indeed, the three collision facilities had already earned the Silver level of the Clé Verte program. To achieve Gold level, the business had to invest in a number of areas, and employees had to be made aware of the impact they could have on the environment. Each of the facilities has a section that is strictly reserved for the Clé Verte program.

“This allows us to ensure and maintain a close monitoring of our environmental interventions” says Emy Pilon of Carrosseries Marc Pilon.

The newest branch, located on Charbonneau Street, as well as the one located on Des Érables Street, have an important asset which is directly linked to the environment. Both of their machine rooms have been specially designed so that the heat produced by the machinery is recovered and redirected to the production hall.

This can save significant amounts of energy that would otherwise go to heating. All three of the facilities in Carrosseries Marc Pilon are located in Trois-Rivières, Quebec.

Carrossier ProColor will partner once again with the Tournée de films chasse & pêche for its 2016 tour. Founded twenty years ago, the Tournée de films chasse & pêche involves the screening of two films containing scenes of unforgettable fishing and hunting shots and edited in high definition. This edition will take place in the evening in fifty cities across Quebec from January 14 to April 14, 2016.

The Carrossier ProColor network’s sponsorship will include a draw for an electric outboard engine at each evening of the tour, at the time of the door prize draw. More information about the Tour, including the event schedule, can be found at actionchassepeche.com/html/tournee.html.

Landry Automobiles joins Carrossier ProColor network

Landry Automobiles has joined the Carrossier ProColor network, and will now operate as Carrossier ProColor Sainte-Rose Laval Sainte-Rose (Laval). The facility has a long and rich history, having been based in Laval for nearly seventy years.

“It is a great honour for us to welcome this renowned body shop among our members, and we will put in every effort to provide them with all the support they need,” says Mario Verret, Business Development Director at Carrossier ProColor.

Landry Automobiles is located at 103 Curé-Labelle Boulevard, in the district of Sainte-Rose, Laval. The collision repair facility is located just down the street, at 108 Curé-Labelle Boulevard.

The business is co-owned by the father and son team of Jules and Mathieu Landry. Jean-Paul Bélisle is the overall manager of the company, while Alain Cardinal manages the collision repair facility.

“We needed a banner that really works for us, with us and offers us an effective and continuous support, particularly to put us in connection with the insurance companies,” said Belisle.

“Moreover, even if we work mostly at full capacity, there remains a few months in the year where additional customers could benefit from our services. We rely on Carrossier ProColor to help us achieve this goal.”

For more information, please visit carrossierprocolor.com.

FEBRUARY 2016 COLLISION REPAIR 27

REGIONAL NEWS

Atlantic CSN-Dana's Collision Center presents cheque to Chalmers Hospital Foundation From left: Andrew Spurway and Collin Miller of Enterprise Rent-ACar; Debbie Sangster, a volunteer with the Chalmers Hospital Foundation; and Dana Alexander of CSN-Dana's Collision Center.

Dana Alexander of CSN-Dana’s Collision Center got a chance recently to hand over a donation cheque to Debbie Sangster, a volunteer at the Chalmers Hospital Foundation. The cheque for $1,000 was delivered by Alexander, but comes courtesy of the Enterprise Rent-A-Car Foundation.

The cheque was to be given to a local charity on behalf of collision centres in the Maritimes as part of the Hometown Heroes program. CSN-Dana’s Collision Centre was one of two businesses chosen as “Hometown Heroes” in the New Brunswick draw that took place earlier this year in Moncton.

CSN-Keizer to purchase CSNThe Coachworks CSN-Keizer's Collision and Automotive Center has announced it will purchase CSN-The Coachworks. Both facilities are located in the

Greater Halifax Area.

"We're looking for more territory," says Dale Keizer, owner of CSNKeizer's Collision. "We're looking to grow, and purchasing CSN-The Coachworks was a great opportunity. The owner, Terry Hill, has a great brand and a really great model that fits ours 100 percent."

CSN-The Coachworks will retain its branding under the new ownership.

Fix Auto expands with Fix Auto Fredericton Some of the team from Fix Auto Fredericton. The facility has recently joined the Fix Auto network.

Paul Randles, General Manager of Fix Auto Atlantic Canada, has announced the addition of new strategic partner Fix Auto Fredericton. This facility is located in Fredericton, New Brunswick.

Fix Auto Fredericton has undergone major changes in the past few months, like the addition of four more work bays, a new office, new management software, a new paint system, new aluminum repair equipment and new nitrous plastic welding equipment.

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POINT BLANK WITH PIERCEY

BETOUGH Draw a line and get what you’re owed.

By Sam Piercey

College helps motivate technicians to become certified When it comes to compliance and certification, the automotive repair industry saw significant strides in 2015.

Working with the Ontario College of Trades (the College), Collision Industry Information Assistance (CIIA) says more technicians are being motivated to become certified and that there has been an increase of apprentices working in the field.

In the past six months alone, the rate of new licensed technicians entering the trade is up an astounding 600 per cent – with an average of 20-40 new licensed technicians per month (previously it was less than 10).

“Skilled trades professionals work hard to become certified and trained in their area of expertise,” says Bob Onyschuk, the College’s director of compliance & enforcement. “It’s great to see more individuals protecting their integrity and adhering to these high standards of practises.”

When it comes to compliance – education is the key. The College, a first of its kind regulatory body in North America, currently has over 50 enforcement officers throughout Ontario who are on the road every day educating people about the legal requirements of certification and ensuring that anyone engaging in the practice of a compulsory trade has the proper training to do the job. In December 2015, they conducted two extensive blitzes in the motive power sector, visiting close to 600 sites over a multi-day period.

“Our goal isn’t to hand out as many tickets as possible; it’s to promote education and bring people into compliance,” says Onyschuk.

“Through education, people are able to see the big picture — that certification exists first and foremost to ensure safety for the public and tradespeople alike.”

Overall, in 2015, the auto body collision damage repair sector also saw the number of people writing the Certificate of Qualification (C of Q) examination double, the failure rate drop from 76 to 60 per cent and the number of apprenticeships increase by 30 per cent.

30 COLLISION REPAIR COLLISIONREPAIRMAG.COM

W

e are going into a new year as I write this.

Same old, same old.

You would think that after 45 years things would have changed for the better. They have in some ways, but not in others.

There are still some insurance companies that get it, and there still some that don’t. The ones that don’t get it re-

When you call to collect, they don’t return your call, or they say they didn’t receive it, or they suddenly discover they’re not happy with the repair. It goes on and on and I’m sure you’ve heard it and seen it just as much as I have.

It’s time for us to put our feet down about this. The solution isn’t going to win you any friends, but it’s simple.

Do not release the car until the cus-

IN THIS BUSINESS, WE HAVE TO BE TOUGH.

ally give the impression that they don’t want to work with us to satisfy our mutual customers. These are the ones that say things like “Well, if you go to that shop, we won’t guarantee the work!” The fact is that we guarantee our work, not the insurance company. That’s the way it’s always been.

These are the same insurance companies that also try to bully customers into using a DRP shop, when the customer really wants to go somewhere else. Over the years, I’ve seen and heard it all.

They want to send work to the DRPs. I get that. I really do. Still, customers get to take their car to their preferred facility.

Discouraging them from doing so is bad business.

Here’s something that just bugs me: sending the cheque co-pay to the policyholder’s home. We’ve finished the repair in good faith, the customer has their vehicle back, and now we have to chase them for the money? Ridiculous!

Sending the policyholder the cheque just creates trouble for the shop. Not with everyone, of course. Most people are honest, but some aren’t. I’ve seen cases where the policyholder simply cashed the cheque and kept the money.

tomer brings the cheque. Tell them in advance that it’s cash on delivery, or there’s no delivery.

As I said, this won’t win you any friends, but I think this what we sometimes need to do just to get the money we’re owed for our repairs. The insurance company has paid out, so as far as they’re concerned there’s nothing they can or should do.

It’s up to us to fight for that money, so avoid the fight in the first place by making it crystal clear to your customers that until the cheque clears or you have cash in your had, you’re not releasing the car.

This might sound tough. Well, it is tough. In this business, we have to be tough, or the few bad apples out there will walk all over us.

Most customers are honest, most shop owners are honest, most insurers are honest. Watch out for the dishonest ones and hang tough. 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.

CRM 14#3 Book.indb 44

2015-05-21 5:15 PM

PRAIRIE VIEW

ACTIVEDUTY It’s time for me to go on the reserve list.

By Tom Bissonnette

S

ixty! I will be 60 years old in 2016! In my mind I am still 19 years old, but my joints and stamina tell me otherwise. Time waits for no man and I am not exempt from its ravages.

It is with that in mind that I have made the decision to “retire” from active duty here at Parr Auto Body at the end of September 2016. I know that I have friends in this business that are older than I am and they are still going strong, building new shops, planning for the next five years, etc., but for me, I have accomplished my goals in this industry and it is time for some of the younger folks to step up.

What were my goals? First, I wanted to own my own successful collision shop. Did that.

Second, I wanted to make a difference locally, provincially and nationally to help the industry

b ecome b etter. Did that (I think). Third, I wanted to give my key employees a chance to have a great life by becoming business owners.

Did that and doing it now.

I’m lucky. I have five people in my organization that were willing to buy into the business and they now have enough equity to buy the remaining shares. Three of them are technicians just approaching 30 years of age, one is a longtime friend just a year younger than me and the fifth is a person you will all start to get familiar with this coming year, Chelsea Stebner.

Chelsea has been a friend and co-worker of mine basically since 1996. There was a period of maybe two years when we worked at separate jobs. Other than that she has been a key part of Parr Auto Body’s success since the spring of 2001. I am an idea guy, she is a detail person,

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PRAIRIE VIEW

and together we have had great success.

Chelsea will be the face of Parr Auto Body going for ward. You will see her at CCIF and other industry events in the coming year, please welcome her and prepare to be amazed at how she steps up to the plate to help move this in-

cause I believe it will be good for our industry here to take our eyes off of our problems for a short while and help somebody else solve theirs.

Further to this, I plan to do a little traveling.

I am a golf nut so I expect to spend some time next winter where I can indulge in the game.

I HAVE ACCOMPLISHED MY GOALS AND IT IS TIME FOR SOME OF THE YOUNGER FOLKS TO STEP UP. dustry forward. For me, what am I going to do when I retire?

My first goal is to help the CCIF/Haiti Arise Collision Repair Training School in Haiti become a reality. Expect to hear about a major fundraising push. Essentially we need to raise enough money to build a shop, organize a couple of containers to be sent down and arrange for volunteers to start heading down to help mentor the young people in and around the Haiti Arise compound. I am excited about this project beIMP-0187 Ad_largest selection_hlf pg_print.pdf

I am sure that after a while I may get bored as I am the type of person that always need to be doing something so stay tuned, I may be back in some capacity in this crazy but wonderful industry.

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

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WHO’S DRIVING?

MAGICPILL Sorry, friends. It doesn’t exist.

By Jay Perry

G

ood news and bad news. First, the bad news, there is no magic pill that can be taken to immediately catapult your business to a higher level. Next, the good news. There are myriad adjustments that can be easily instituted that collectively bring high impact to the performance of your business.

I think that the former, bad news, situation is why so many people give up on things in business and end up resigned to what they have as opposed to starting with tiny little improvements.

They get stuck on the idea that this one next sem-

what kind of improvements will come to them if the marketing is successful.

Do those benefits look like raises, bonuses, a benefit package expansion? Could it be funds for reinvestment into newer equipment, software or training? Could it be a greater responsibility and room for advancement for their career? In other words, they want to know “What’s in it for me?”

The benefits may be spread over the whole operation, and you know that, but your staff may not see it right away. It is difficult to get people to support you unless they know that benefits will come to them as well.

WHEN PEOPLE CAN SEE OPPORTUNITY, THEY CAN FULLY THROW THEMSELVES INTO THE SYSTEM. inar or course they take or piece of equipment that they buy or the new location or the expansion, etc. is actually going to be that magic pill.

When it proves not to be a magic solution to every problem, they get disheartened and stop looking at the tiny things. They reason if they can’t bring significant change through large things, then how can tiny things work?

If you think about it mathematically, if I make a 1 percent change to the 10 major areas of my business I can change things by a collective 10 percent.

That is significant and it is also manageable. When combined with a plan that supports the overall strategy and keeps things moving forward toward the place you want to be, you can drive change in tolerable doses through your company.

Here is an example. If you know employee engagement is important for the success of the strategy for your business, start by having small one-on-one conversations with the staff, sharing with them what the future looks like and what plans you have put in place to help you accomplish the goal.

So if you know marketing your company is what is going to bring more work to the door, but you need for others to “watch your back” while you are doing that, then share with them 34 COLLISION REPAIR COLLISIONREPAIRMAG.COM

When people can see opportunity for themselves, they can fully throw themselves into the system that supports your strategy. If they think it is doomed because they do not understand, they will not throw their support into doing their part. Why would they? It would seem that you’re asking them to do something with no benefit!

This is part of why it’s so important to explain thoroughly and make sure they understand both the process and the destination.

The small thing of better communication can bring improved results for you and ultimately business growth. If you want to have a modern looking office, start with one room and proceed one room at a time. That way, the 10 room office can be completely modernized over a manageable time. If you do one a month, you’ll have it finished in less than a year. It is the thinking through the strategy and designing a system, then bringing others into the plan that will keep you the one who’s driving.

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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TRAINING

KNOWLEDGEFOCUS In business, training really is the key to success.

By Andrew Shepherd

T

he Car Care Professionals Network (CCPN), an Auto Care Association advisory committee made up of successful repair shop owners and managers, has released a recommended set of best practices for repair shop education and training.

Although the CCPN deals with mechanical repair issues, its recommendations could serve as an ideal model for Canadian collision repairers as well. In this article we’ll look at the roles and responsibilities of shop managers and staff in training.

In keeping with I-CAR’s focus on knowledge management as the most important driver of suc-

for the entire group. One way to create and sustain this behaviour is to keep the learner informed of their training and recognition/certification path, in addition to any rewards waiting at the end of the road.

Now that your training needs and focuses are set, map out a rough training schedule (keeping in mind seasonal workloads, of course). Contact training providers or prepare for online training.

Since so much training is delivered virtually these days, consider a dedicated work station in a quiet environment, with supportive materials and manuals nearby.

THESE BEST PRACTICES ARE KEY TO THE SUCCESS OF YOUR BUSINESS. cess, the foremost role of the manager is to position training in the knowledge development cycle (create and instill a vision for success; determine the skills needed by the organization to achieve that success; plan and execute training to build those skills; ensure the knowledge acquired through training is disseminated as widely as possible).

The manager should be planning training for the year, with a dedicated financial and time budget and specific skill needs in mind. The plan is mapped against staff capabilities. Are there new staff who need fundamentals? Have you got functional areas of the shop that are facing new technology and equipment challenges? Are there technicians who should be “training models,” acting as mentors and team leaders for others?

Another important aspect of your training plan is a reward system. This doesn’t need to be exclusively financial, although few technicians will say no to a training bonus. Public recognition, time off and/or small gifts can go a long way to signaling the priority you are putting on training.

The role of the technician, estimator and other staff in training can’t be ignored, of course. Learner buy-in is key to success. They must understand why they are training and they must commit to growth 36 COLLISION REPAIR COLLISIONREPAIRMAG.COM

Once training is completed, think about how to distribute the new knowledge within your organization, and how to measure training results. Have the trainee explain key learnings to you and to teammates. Have him or her mentor other technicians in the new skills. Where possible, examine the impacts of training on key performance indicators. Has cycle time improved? Have CSI scores increased?

Has employee satisfaction been enhanced?

Finally, start your cycle again. What knowledge gaps remain (or indeed have emerged over the past months)? Is everyone on the team on board with training and its place in profit and success? Are you as a leader planning and engaging your group to make the most of training?

These best practices are key to the success of your business. In future articles we’ll examine the roles and responsibilities of the training provider, and how choosing the right training partner can make your life a whole lot simpler.

Andrew Shepherd is the Executive Director of I-CAR Canada, a non-profit organization that provides collision repair training and ongoing education. He can be reached via e-mail at andrew.shepherd@aiacanada.com

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CARSTAR CARSTAR is one family, on both sides of the border, thanks to Driven Brands.

Jose R. Costa (left), President of the Paint and Collision vertical for Driven Brands, and Michael Macaluso, President of CARSTAR.

C

ARSTAR Canada and CARSTAR US have united as one company on both sides of the border. This unification comes after both brands were recently acquired by Driven Brands, the leading holding company of many automotive aftermarket franchise brands across North America. This will have a profound impact on the collision repair sector.

Driven Brands was formed in 2006 with a mission to create the largest automotive franchise holding company. Today that vision is reality. Collectively Driven Brands has more than 2,200 centres across

the U.S. and Canada, which are predominately owned and operated by franchisees. Combined, all businesses generate nearly $2.0 billion in system sales.

Driven Brands recognizes that business starts at the shop level for its franchises – a value that makes CARSTAR a perfect fit for the company.

Driven Brands’ investment in each of its franchisees is part of what will push the business forward. This has been part of the CARSTAR philosophy from the very beginning.

CARSTAR, already a leader in the automotive

R United collision repair space, is positioned for additional growth and improved efficiencies under the Driven Brands umbrella. Jose R. Costa is the President of the Paint and Collision vertical for Driven Brands. The Paint and Collision vertical houses CARSTAR, Maaco and Drive N Style.

“CARSTAR is a phenomenal business on every measure.

Whether location, profitability, insurance relations or performance of the network, CARSTAR is a strong business.

Our team was very impressed with the leadership team and their track-record of success,” said Costa. “The established marketing, operational and information technology platforms are best in class for the industry and I am very excited to have CARSTAR Canada join the Driven Brands family.”

With the addition of CARSTAR, Driven Brands was able to establish its Paint and Collision vertical. Costa explained that with CARSTAR’s depth and impressive service offering Driven Brands now has the ability to offer more opportunities to franchisees and customers.

“As we reviewed the opportunity to acquire CARSTAR Canada, we immediately saw the legacy that Sam Mercanti and Michael Macaluso built for the last 20 years. It’s very impressive and we are confident about our decision to have them join our family,” said Costa.

Michael Macaluso, president of CARSTAR Canada, says that the newly united CARSTAR companies will realize a number of benefits from joining Driven Brands.

“From the Canadian perspective, times have changed – and that’s a positive thing. This is an absolutely incredible opportunity for our franchise and vendor partners to take things to the next level,” Macaluso says. “We’ve done great things over the last 20 years, and I’m looking forward to the great things we’re going to achieve in the future. This isn’t the end of a chapter. It’s the beginning of new opportunities, including increased breadth, scope and horsepower for our franchise partners.”

An interesting business line that CARSTAR Canada has developed but is generally absent in the US is CARSTAR Express; retail locations designed specifically for estimates and minor cosmetic automotive repairs. These retail-focused shops are connected to larger production facilities in the same communities where needed larger repairs are managed.

The car is delivered back to the Express for pick-up. It’s a convenience service for customers, and allows the local CARSTAR to provide greater geographic coverage without the expense of a full shop.

“CARSTAR Express is part of our multi-tiered approach to offering convenience to consumers. It developed out of a need to be more accessible to our customers and insurance

partners through providing better retail coverage. It’s also proven to be an avenue for our franchise partners to grow,” Macaluso says.

Led by Costa, Driven Brands has begun testing the CARSTAR Express model and believes there are opportunities to share best practices across the entire Paint and Collision division.

“Driven Brands is committed to continue to grow our network, to reinvest in the community and hire more people,” says Macaluso. “They have been crystal clear that this is all about growth, growing outwards across the country and keeping Hamilton as the national headquarters. We want to grow exponentially across the country, and this is an ideal opportunity to leverage our combined franchise networks and improve operational efficiencies while enhancing the customer experience. This will new resources to CARSTAR, allowing us to strengthen and grow for the future. This joining of forces demonstrates both of our organization’s drive to be humble and hungry.”

In a note to CARSTAR employees, Sam Mercanti, the founder of CARSTAR Canada, hailed the deal as a pivotal moment in the company’s history. “Over the last few years, we have been searching for the right strategic partner to help CARSTAR Canada take our amazing organization to the next level. I’m pleased to announce that we have found that right fit with Driven Brands. They share our same values, determination and success, and have extensive expertise in automotive retail franchising around the globe.”

Sam Mercanti will assume the role of Chairman of CARSTAR Canada, while Michael Macaluso will continue to lead CARSTAR Canada in his role as President.

CARSTAR’s “commitment to a variety of causes and new developments in the Hamilton community will continue as they enter this exciting new era in their evolution of creating employment and providing care and support for others in Hamilton,” said Mercanti. “For customers and partners of CARSTAR Canada, it will be business as usual as the company continues its legacy of carefully managed growth and continuous service enhancement. Known as a brand that customers associate with quality, CARSTAR’s commitment to the highest levels of quality and premiere positioning fits perfectly with Driven Brands and strengthens the company’s product offerings and expertise.”

PROFILES OF SUCCESS

Networking

Frank Sottile, owner of CARSTAR Brampton. Sottile has recently sold off his interest in CARSTAR Downsview and it’s associated CARSTAR Express location to concentrate on the Brampton business.

For Success

Frank Sottile of CARSTAR Brampton believes in education through colleagues.

By Mike Davey

F

rank Sottile has had a foot in both sides of the auto repair business from a young age. The owner of CARSTAR Brampton, he’s the son of Luigi Sottile, an auto mechanic who founded a combination shop with his cousin Armondo, a body tech, in 1979. Both sides of the business grew and grew, and eventually the mechanical side of the business split off to become Promotive Service Centre.

“As a young kid, when all the other kids were playing street hockey, I was taking every opportunity to come into the shop,” he says. “It was either cars or spending time with my father that drove me, probably a

40 COLLISION REPAIR COLLISIONREPAIRMAG.COM

combination of both.”

When Sottile started high school, his father took him to a repair and service centre within walking distance of his school. It was Sottile’s first experience working outside of the family business.

“My dad gave the owner of that shop his first job, and in turn he gave me my first job,” he says. “Once I got my drivers license, I started working more at the family business.

Every day, if I didn’t have homework to do, I’d head to the shop to work.”

After high school, Sottile took automotive administration at Centennial College, as well as various estimating programs the col-

PROFILES OF SUCCESS

lege offered. He completed his autobody license, but moved into the administrative side fairly quickly.

“I think my father put me on the right path, and got me doing all the right things to make me well-rounded. From the washing of cars to preparing the final invoice, there isn’t anything in the shop that I can’t do,” says Sottile.

There’s a lot to be said for this sort of hands-on experience. It’s easier to manage staff if you’ve got direct experience with the sorts of challenges they experience every day.

Consolidation started to become a major force in the Canadian industry in the late 1990s, and more than one consolidator approached Luigi Sottile about selling the business, but he wasn’t interested. However, he had a change of heart and approached Larry Jefferies of CARSTAR about selling the facility.

“CARSTAR had 11 franchise stores at the time, and they decided to purchase the Brampton store from my father in 1999,” says Sottile.

“The deal was that I would work for them as manager for six months, and then move on.”

The deal was signed in August of 2000 and CARSTAR was supposed to take possession on January 1, 2001. Fate intervened, and Luigi Sottile passed away in November of 2000. The paperwork was already signed, but Frank Sottile said CARSTAR put the ball back in his court.

“CARSTAR was very compassionate about our loss,” says Sottile.

“They said ‘whatever you want to do, we’ll go with that.’ After a long discussion, we decided to move forward with it.”

The deal was modified slightly so that CARSTAR would take possession in July, and Frank Sottile would stay on until December. It didn’t quite turn out that way, though.

“I was born and raised in the business, and frankly I thought I knew it all, but I got an education with CARSTAR in those six months that

“I was born and raised in the business, and frankly I thought I knew it all, but I got an education with CARSTAR in those six months that was unbelievable.”

– FRANK SOTTILE was unbelievable,” he says.

Instead of leaving the business after six months, Sottile stayed on.

As he says, it was an education.

“I knew the business in Brampton, but with CARSTAR I got to experience the collision repair industry across the country,” he says. “My six month term turned out to be five years. At that point, I decided it was time move on.”

CARSTAR had something else to offer, though. They presented Sottile with an offer to buy the business from them. He took them up on the offer, and Sottile and his facility have been part of the CARSTAR family ever since. It’s been a journey that’s encouraged him to become a part of the growing community of multi-store operators (MSOs).

“When CARSTAR offered to sell me the Brampton store, they also offered an opportunity to expand into another territory. I decided to pursue that, and ended up purchasing CARSTAR Downsview with partners.”

Later, the business expanded again, this time with a CARSTAR Express location linked to the Downsview store. Sottile has recently decided to sell his interest in the Downsview locations to concentrate full-time on the Brampton location.

The team at CARSTAR Brampton.

FEBRUARY 2016 COLLISION REPAIR 41

PROFILES OF SUCCESS

A technician uses a cart-equipped computer on the production floor at CARSTAR Brampton. Touches like this help the operation keep moving.

“I am focusing more of my energy on the Brampton business, and the future is about building that,” says Sottile.

It’s easy to believe that managing and growing CARSTAR Brampton is a full-time job. The facility employs a staff of 25 spread over three buildings. The main building is 12,000 sq. ft. and it’s where the bulk of repair work is carried out. There’s a second building, 4,000 sq. ft. in size, that’s used for prepping and edging of parts. Finally, a third building measuring 2,000 sq. ft. is used for detailing and rust proofing.

The family also still owns Promotive Service Centre in Brampton, within walking distance of CARSTAR Brampton. It’s a synergistic relationship.

“Our mechanical business started off by specializing in collision repair, so our mechanics have something of a reputation of being collision savvy,” says Sottile. “It’s very beneficial for CARSTAR Brampton when we need to subcontract mechanical work, but we also do mechanical work on collision damaged vehicles for other companies.”

Sottile says the biggest challenge is one that’s familiar to owners across the country: finding qualified technicians.

“We use a number of approaches to find good staff,” says Sottile.

“I am focusing more of my energy on the Brampton business, and the future is about building that.”

– FRANK SOTTILE

“First, we take as many co-op students as we can. Some of them turn out to have an aptitude for the business, and some don’t, but it’s definitely been worth the effort. We’re also currently working with an immigration lawyer to bring in technicians from Eastern Europe and other places.”

Good technicians are never easy to find, either for collision or mechanical work. However, as we noted earlier, Sottile has a foot planted in both worlds, and he says it’s easier to train good mechanics.

“It’s not easy to find them, but I think it’s easier to train someone with aptitude to be a good mechanic,” he says. “A brake job on a Honda Civic is essentially the same as a brake job on a Ferrari.

Collision work isn’t like that. Every single one is different.” CRM FEBRUARY 2016 COLLISION REPAIR 42

• Pre-8AM delivery to 90% of Ontario • Extensive inventory of mechanical parts • Quality parts at competitive prices

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PROFILES OF SUCCESS

CARROSSIER PROCOLOR:

Fueling the community The network gives back to the community with over $1 million in donations.

By Jeff Sanford

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arrossier Proat Carrossier ProColor Color’s mission couldn’t be better. is simple: Be a But where the company leader in the also stands out is in terms collision repair of its community-building space in Canada. Following initiatives. Carrossier Prothe blockbuster merger with C olor has inst itute d a CSN, the company is well on rigorous policy on phiits way to fulfilling that goal. lanthropy and charitable But if the definition of giving that is one of the real success includes charileading examples of cortable giving and building porate social responsibility the local community, Car(CSR) in the country. rossier ProColor is already a One important annual major player—the company event is the three-year old has made it company policy Christmas Charity Project. to get involved in commuThe company raises money nity building events. More dur ing its annua l golf importantly, it has acted on tournament to provide that policy, and has been g ro c e r i e s to i mp ove rDenis Taillon, head of the company’s local fundraising committee, Ginette Fortin, busy funding several difished families around the President of the Board of la Traversée internationale du lac Saint-Jean, and ferent charities. holidays. Over the years Michel Charbonneau,Honorary President of the fundraising campaign, unveil the In 2 0 0 1 t he net work the event has grown. This amount raised during the fundraising campaign. launched under the name year’s donation is the bigof ProColor Prestige. It gest yet. was a large provincial multi-store operator (MSO) with 38 colli“We have many fund raising activities over the year. One thing sion repair centres in its network. But between 2001 and 2008 the we’ve been doing for the last three years is to help underprivileged chain grew rapidly, expanding its network to 97 collision centres families during the holiday season,” says Mary Jayn de Villers, across the province, and then to 130 by 2010. Since that time Car- Communications and Marketing Director at Carrossier ProColor. rossier ProColor has partnered with Collision Solutions Network The company had planned to give out Christmas baskets to the (CSN) in an industry-changing merger that created the single families, but hit on gift cards as a better option. “At first we were largest chain of collision repair centers in Canada. considering giving food baskets. But it’s not practical anymore The deal was a big win for both sides. Carrossier ProColor be- since so many people have different food allergies. Instead, we came part of a network of over 315 collision repair facilities. CSN have decided to give out grocery store gift cards so that they can immediately gained a very substantial presence in Quebec. Today, buy what they want,” says de Villers.

Carrossier ProColor represents the interests of CSN in Quebec.

This year the company was able to raise $20,000, doubling both The company operates state-of-the-art facilities, is a leader in the amount donated and the number of families that will benefit. terms of utilizing new technology and is one of the largest MSOs One hundred needy families will receive a $200 grocery store gift in Canada. Executives at Carrossier ProColor enjoy being leaders card. So far the company has given a total of $40,000 to 190 famiof the industry, clearly. The company was one of the first to shift lies over the three year run of the program. entirely to water-soluble paints.

Also on the charitable calendar for Carrossier ProColor is the When the network began collecting and measuring perfor- Children’s Wish Foundation, an organization which helps grant mance indicators in 1998 the company found it had a customer children diagnosed with a life-threatening illness their biggest satisfaction index of 98 percent. So the business side of things wish, which has received over $600,000 from the company. DoFEBRUARY 2016 COLLISION REPAIR 45

PROFILES OF SUCCESS

Realizing the Benefit Carrossier ProColor takes its charitable giving seriously.

Over the last five years the company has given away over $1,000,000 to various charities, foundations and causes.

In addition to the organizations cited in the story Carrossier ProColor has also donated to the following organizations:

Carrossier ProColor’s team at headquarters. Back row: Jérôme Bolduc, Mario Verret, Serge Noreau. First row: Mario Lépine, Renée Fortier, Josée Bélanger, Mary Jayn de Villers, Claude Gravel. Not in the photo: Michel Charbonneau, Alain Villeneuve, Michel Fournier, Mélissa Murphy.

nations are raised through a fundraising activity held during its annual conference, as well as through its collisions centres who donate $1 for every repair estimate they make. Since it starting supporting the foundation in 2008, Carrossier ProColor has helped make over 60 dreams come true There are many other community-building events the company takes part in, however. The company also supports an interesting organization named PurNat. Created by Marcel Poiré, Jean-Raphaël and André Coté in July 2013, PurNat is a non-profit that cleans up illegal dump sites. Everyone knows what an eyesore empty lots can be if become illegal dumping spots for people trying to avoid fees at a designated landfill. Construction debris, old cars, mattresses—it all piles up, destroying the local environment. PurNat is a charity dedicated to cleaning up these sites. The organization coordinates the operations and mobilizes volunteers, while also working to educate youth about the dangers and harmful effects of dumping.

This past July Carrossier ProColor took part in the second cleaning operation of the Montagne-des-Roches Mountain in Quebec City. Twenty volunteers cleared over ten tons of illegally discarded metal, plastic, building materials and household waste.

So far 25 tons of junk has been removed from the site. Both shop owners and head office staffers took part in the clean-up.

“We have a three-year partnership with PurNat. We help build awareness of their charity by inviting our network and industry partners to sign up as volunteers for clean-up events,” says de Villers. “It’s a great way for our collision centres to give back to their community.

With 156 repair shops across the province, we are well positioned to lend a hand wherever the cleaning activities take place.”

The company is also sponsored the 2014 edition of the Traversée internationale du Lac St-Jean. The event is an epic, legendary 32 km open water swimming race between Péribonka and Roberval Quebec. The event takes place on the last Saturday of July. This “cult” marathon has been held for 60 consecutive years. It is one of the oldest sports events in North America. In 1994 “Outside” magazine classified the Traversée internationale du lac St-Jean as one of the six most challenging sports events in the world.

Carrossier ProColor will also be encouraging young Canadian swimmers by sponsoring the Canadian Espoir Cup for the next

• • • • • • • • • • • • •

Adaptavie Soutien-O-Sinistrés : Relay for Life Société Saint-Vincent de Paul de Québec Fondation du CHUM Opération Enfant Soleil Epilepsy Support Centre Fondation des musées de la Civilisation Dystrophie musculaire Canada Fondation des pompiers du Québec pour les grands brûlés Fondation des maladies du coeur et de l’AVC En Coeur fondation québécoise pour les enfants malades du coeur Movember Foundation

three years, 2015 through 2017. The Carrossier ProColor Canadian Espoir Cup consists of three open water swimming races for young Canadian athletes aged 15 to 26, which take place during the Traversée internationale du lac St-Jean, lac Memphrémagog and lac Mégantic events. At the end of the season, swimmers who have accumulated the most points share prizes worth $5,000.

The company also donated generously to the Red Cross to help Lac Mégantic in the wake of the oil-train disaster.

Most recently the company has been involved with collision industry educational efforts. In what is a unique bit of charity, the company has sponsored a project in which Montreal’s École des métiers de l’équipement motorise de Montréal will refurbish an old 1967 Mustang.

“To help students discover and fall in love with a career in auto body repair, we’re sponsoring a project with the school where they are rebuilding a ’67 Mustang from scratch,” says de Villers.

The refurbished Mustang will be sold by a silent auction at the 2016 International Auto Show in Montreal. Proceeds from the sale will go to the Trioomph Foundation which encourages and motivates students to finish their high school or vocational education.

“There is a real labour shortage in our industry. Supporting the Mustang project is one way we can help students develop a passion for the trade,” says de Villers.

It is now commonly accepted by business professionals that corporate charitable giving has many benefits. There are, of course, the benefits to the community. But beyond that there are benefits for the organization itself. Experts identify several “external” benefits for companies that institute these programs. There are benefits in terms of public relations, reputation and a generally positive corporate image. Clients can feel good about dealing with the company. But there are other, internal, benefits. Employees are engaged. Morale is high. Teamwork improves. A more generally positive attitude develops throughout the organization.

No wonder Carrossier ProColor is taking on an image as one of the elite organizations in the Canadian collision repair networks. CRM

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REFINISH ZONE

Mark Worman and Royal Yoakum of Velocity’s ‘Graveyard Carz.’ Worman says the change since switching to LED lighting has been dramatic.

Making the case for switching to LED lighting.

By Josh Kegley

C

ollision repair facility owner Mark Worman spends his days restoring classic Dodge Chargers, Challengers and Barracudas. And because he’s also the star of “Graveyard Carz” on Velocity, he does a lot of that work in front of a camera.

His shop’s custom restoration jobs are seen and critiqued not just by Worman’s team and customers, but by his entire viewing audience. Talk about a tough crowd. With all those eyes scrutinizing the muscle cars that roll out, Worman wants each new restoration to top the last. That requires not just hard work and

48 COLLISION REPAIR COLLISIONREPAIRMAG.COM

expertise, but really good light.

Like many shops, Worman’s team used to have to wheel their vehicles outside to be inspected in natural daylight because the fluorescent fixtures inside weren’t up to the task. That changed in early 2015, when Worman moved into a newly renovated space and had 28 high-bay LED fixtures installed. The fixtures produces 26,000 lumens – equivalent to the light output of about 32 standard 60-watt bulbs.

“We haven’t had to pull one car out since we’ve been here,” Worman says. The lights’ precise, directional output has saved

REFINISH ZONE

the team time and helped declutter their workspace. Worman and crew no longer have to rely on drop lights with cords running from wall plugs to cars, creating tripping hazards.

LEDs aren’t perfect for every facility or budget. But they are particularly well suited to collision repair facilities. Besides energy efficiency, shops can benefit from LEDs’ long-life, reduced maintenance, durability, and especially, their quality of light: High-quality LEDs appear far brighter than fluorescents.

Here’s where it gets tricky: take a look at spec sheets for an LED A view of the production area lit by LEDs, manufactured by Big Ass Light. According to the manufacturer, they do a better job than flourescents in part because the lighting is directional. fixture and a typical four-bulb fluorescent fixture, and you’ll notice that both produce similar total lumens, the industry standard measurement of light output. So why brightness that can only be regained by constantly replacing bulbs, do LEDs appear brighter? whereas high-end LEDs have a rated life of up to 17 years of 24Unlike traditional bulbs, which disperse light in all directions, hour use. If you’re not working 24 hours a day, your grandchild LEDs are a directional light source. That means all light produced could someday be using the same fixture. is focused toward the work area (typically within a 120-degree Worman is convinced that the work his team has done since arc), which creates brighter work stations, as well as fewer shadows moving into their new shop is their best ever. and less wasted energy. Fluorescent bulbs, on the other hand, are a “Our cars look like glass,” says Worman. “They look like candy, 360-degree light source. They emit light up to the ceiling and out to like you just dipped them in a big vat of maple syrup and poured the walls, neither of which is of much help to workers on the floor. them out. CRM Light bouncing off walls and reflecting back to the cars can create Josh Kegley is employed with Big Ass Solutions, providing a number of items troublesome shadows.

As fluorescent bulbs age or become dirty, they lose even more designed for use in collision repair facilities, including LED lighting systems.

Making Your Choice So say you’ve decided to upgrade to LEDs. How do you choose a fixture and supplier?

To get the most out of your lighting upgrade, I suggest you seek out the following: DIODE PROTECTION: Contaminants like paint, dust and fumes aren’t good for the electronics in LED fixtures. Look for fixtures with covers that protect the diodes and circuit boards. The cover should be able to be easily removed for cleaning.

are ideal for body and engine work, but a couple wall-mounted fixtures, for example, can help technicians see inside and under cars.

DURABILITY: Auto shops are one of the only places where light fixtures are likely to get hit by a truck. (Lifts and low ceilings don’t mix.) Avoid fixtures made from flimsy sheet metal or with delicate components, such as the LED driver, exposed.

COLOR TEMPERATURE AND CRI: For accurate paint matching and inspections, fixtures with color temperature of 5000K or higher and color rendering index (CRI) of 70 or more will provide the most clarity.

HEAT DISPERSAL: Heat is the enemy of LEDs, and that’s a problem in shops lacking air conditioning.

Search for fixtures with large heat sinks and compare average rated life. Fixtures with effective heat sinks are much more likely to reach a rated life of 150,000 hours.

MULTIPLE MOUNTING OPTIONS: Overhead high-bay or low-bay fixtures

OCCUPANCY SENSORS: Unlike metal halide lamps, LEDs don’t require time

to warm up. And, unlike fluorescents, turning LEDs on and off rapidly won’t cause the light to fail early. Occupancy sensors guarantee the lights only operate when they’re needed, which will save energy without negatively affecting productivity or fixture life.

PROJECT MANAGEMENT: For bigger shops with lots of lights, coordinating the installation of fixtures can be a hassle with a web of contractors and distributors to untangle. Search for suppliers that provide sales, installation, warranty service, rebate administration and more.

FLEXIBLE HOURS: Time is money.

Search for a supplier that installs around your schedule, including afterhours, so you don’t have to stop working while guys in coveralls climb around your ceiling running wires.

FEBRUARY 2016 COLLISION REPAIR 49

CUSTOMER SERVICE

Shop of

HORRORS Word of mouth has the power to hurt or harm your business.

By Bob DuBreuil

Staff members that know how to speak to customers can help your business rise, but employees that don’t can sink your facility.

N

ot too long ago, a friend of mine shared a collision repair experience with me. Her story shocked me.

It all began right after she had an accident.

There was not a lot of damage, but the car required a new bumper and some work to one of the fenders. She decided to take it to a shop not far from where she lives.

The shop gave her an estimate and she agreed to bring her car in for the repairs. When the repairs were completed, she went to pick up the car.

The estimator that she had dealt with previously delivered the car. As he was going over the vehicle, she noticed that the gaps on either side of the bumper looked uneven. The estimator seemed aggravated at her for bringing this to his attention. He told her to wait while he brought the car back into the shop.

He returned a while later and told her they had fixed the bumper as good as they could. Not knowing what she should expect, she paid her deductible and drove the car home.

Knowing that I work in the collision industry, she asked me to have lunch and to look at the car. Now everyone knows that I am not a technician but my 20 plus years of experience told me that 50 COLLISION REPAIR COLLISIONREPAIRMAG.COM

this was not an acceptable repair.

The bumper had not been put on straight and the gaps were not even. I could insert my pinky finger in the gap between the bumper and fender that had been repaired. I, along with another person she knew from the industry convinced her to take the car back to the shop.

When she showed up at the shop, things got even worse. The estimator was really annoyed with her. He blamed the poor repair on the insurance company because they had insisted he use an aftermarket bumper as the car was over 2 years old. And then he complained that using an aftermarket part had been less profitable for him so he wasn’t happy about fixing again, but finally relented.

He told my friend that she should leave her car and he would give her a courtesy car to drive. She agreed.

A few minutes later, a courtesy car arrived at the front of the shop for her. First off, the car was covered in snow, and she had to clear it off herself. Once inside, she saw that the interior of the car was filthy. Garbage from the previous occupant was everywhere, including some rotting food in the cup holder. Wanting just to get her car fixed, she drove off.

She picked up the car a few days later, and fortunately it had

CUSTOMER SERVICE

actually been fixed properly. However, my friend says she will never go back to that shop. And she told me that she has shared her experience, naming the shop, with over 30 people.

This shop owner evidently has no idea about the importance of the customer experience. I really hope that he ends up reading this because I would like to share the following statistics with him:

96 PERCENT OF CONSUMERS WHO HAVE HAD A POOR EXPERIENCE WILL NOT TELL THE BUSINESS, THEY JUST WON’T COME BACK.

• 60 to 70 percent of a collision centre’s sales are the result of a previous customer • 78 percent of consumers will not return to a business where they have had a poor customer service experience • 96 percent of consumers who have had a poor experience will not tell the business, they just won’t come back • An unhappy customer will tell an average of 11 people about their experience • 80 percent of unhappy customers will tweet about it, effecitvely reaching even more people, creating a potential negative view of a business • 70 percent of customers who have had a poor experience will return to that business if their problem was fixed in a prompt and professional manner

“A new generation in collision repair performance.”

So why am I telling you this story? It is no secret that the collision industry is not growing. Holding onto customers so that they recommend your business, and return when they need a collision repair facility is critical to the long-term success of your business.

Insurance companies are tracking customer service index (CSI) religiously because they do not want to lose customers because of a poor experience with a shop that they recommended. Poor CSI could result in the loss of insurance company relationships.

What can you do to ensure a good experience for your customers? Listen to how your employees are interacting with customers. Invest in customer service training. If you are the owner or manager, insist that all complaints be directed to you so that you can find out firsthand what your customers are saying.

When you do have an unhappy customer, make it your personal priority to resolve the problem immediately, and to the customer’s satisfaction. And make sure that you apologize sincerely.

Mistakes will happen, but how you resolve them will have a major impact on your future in this great business. CRM Bob DuBreuil has been employed with AkzoNobel for 22 years and was one of the developers of the company’s “ lean” initiative, Process Centered Environment (PCE).

REST ASSURED

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 55 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.

www.assuredauto.ca

Outperform with Assured!

FEBRUARY 2016 COLLISION REPAIR 51

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HUMAN RESOURCES

Finding qualified applicants is a frequent challenge for owners and managers. The right direction when it comes to staffing is the one that delivers results.

Two repairers have followed different paths to finding good people. By Mike Davey

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Seeking Solutions

ood help can be hard to find. It’s a cliché, but owners and managers of collision repair facilities know that it’s also the cold, hard truth. Kelvin Campbell experienced this first hand when he ran a nationwide campaign seeking experienced techs to work at his facility, CSN-Chapman Autobody in Halifax, Nova Scotia.

“We started our search campaign over seven months ago, and we got about three applicants,” he says. “None of them had experience in collision repair.”

It’s worth noting that CSN-Chapman Autobody is a progressive facility that has earned a good reputation in its community and is a BMW Certified Collision Repair Centre. You don’t get that certification without a dedication to investing in the latest equipment and making sure staff are highly trained. In short, it’s the sort of facility that shouldn’t have trouble attracting staff.

After the cross-Canada campaign failed to net results, Campbell’s next step was somewhat unusual. He hooked up with a company called GlobalForce Resource. The firm specializes in supplying North American companies with the very best in automotive talent from overseas.

“I went to the UK for a weekend and interviewed 10 candidates.

We’re hiring four of them,” Campbell says. “It was eye-opening.

They had gratitude and a lot of enthusiasm about moving to Canada. I not only interviewed candidates, but their spouses as well. It’s extremely expensive to bring a family here, and you don’t want to hire someone and have them leave after six months.”

This makes a lot of sense. Moving overseas is not like simply taking another job. Success relies on entire families buying into the concept. Campbell says it was just as important that ev-

eryone involved knew what they were getting into.

“The UK is very crowded and heavily urbanized. They look at Canada as the land of milk and honey. We’ve got wide open spaces, wildlife and plenty of trees. That’s a different world to them,” he says. “In Halifax, you drive just a bit out of the city and you can buy a huge, beautiful home with a few acres of land for under $300,000. It’s a complete lifestyle change.”

CARDS ON THE TABLE To Campbell’s credit, he did make sure his prospective candidates knew every aspect of what they would be getting into.

Halifax had a record year for snowfall last year, and it’s not unusual for at least one storm per winter to dump 30 to 40 cm of snow in one night. “It didn’t phase them a bit,” he says. “Then I showed them some photos of Nova Scotia in the summer and they were floored. I took along some real estate listings as well.”

You can’t argue with results. Campbell has hired four new technicians, all of them highly experienced and eager to start new lives in Canada.

“I would definitely recommend it to other shop owners,” he says. “The company I used has two options. You can either do Skype interviews or meet them in person. Personally, I think inperson interviews give you a much better feel for a person, and you get to know what they really want.”

Christopher Cosgrove is the founder and General Manager of GlobalForce Resource, the staffing company Campbell used.

He’s been in the business for 15 years.

“The UK is our primary market for applicants, but we do get FEBRUARY 2016 COLLISION REPAIR 53

HUMAN RESOURCES

applicants from Europe, the Philipines, South Africa ... we’re generally looking for the job skills and either English or French proficiency,” Cosgrove says. “We specialize in the mechanical skilled trades, focusing on the automotive trades, as well as trucks and heavy equipment.”

Going outside your own country for staff can present challenges. Cosgrove points to the process in place at his company that tries to minimize those challenges and make it as painless as possible.

“We take the specifications of the job order, run through terms and conditions of employment, rates of pay and discuss if relocation assistance is available and find a resource consultant to work specifically for that client,” he says. “We’ll run recruitment campaigns on digital and social media, and then we screen the applicants.”

No doubt that screeing process saves employers a ton of time and effort. Pre-screening applicants means the employer only needs to interview the cream of the crop. International recruiting may not be for everyone, but for Kelvin Campbell and CSNChapman Autobody, the results are worth it.

“For any shop owner considering this, I would strongly recommend hiring a local immigration lawyer. They’ll understand all the requirements for bringing someone in from overseas, and they can help you avoid the pitfalls,” Campbell says. “I’m also available to give other owners feedback and advice.”

You can reach Kelvin Campbell via email to kelvincampbell1@ mac.com.

Martin and Rachel Eggleton, Kelvin Campbell of CSN-Chapman Autobody, Michael Johnson, Adrian Cetu and the founder of GlobalForce Resource, Christopher Cosgrove.

munities that have a shortage of established services.

It’s up to the candidates to work hard, but there’s some work the business has to do as well to give them the best possible start.

Just as important, they have to have a path to follow once they do get started.

“We develop a curriculum and a career path to make sure there is some sort of advancement from month to month,” says Adam Prochilo. “Costi checks in periodically to make sure they’re progressing.”

Even when hiring through a service or from overseas, a face-to-face interview and chances to get to know the applicant will result in more successful hiring.

ANOTHER APPROACH The management staff at Prochilo Brothers Auto Collision in Toronto, Ontario, has also met challenges when trying to fill staff positions. However, they’ve followed a different path.

Rather than going outside the country, they’ve hooked up with an outfit called Costi. The organization provides educational, social and employment services to help all immigrants in the Toronto area attain self-sufficiency in Canadian society. The organization was founded by the Italian community to meet a shortage of services for immigrants in the post war era, but today it is a multicultural agency that works with all immigrant com54 COLLISION REPAIR COLLISIONREPAIRMAG.COM

HOME GROWN

Note that this is more of a “grow your own” approach to hiring technicians. Some people have an aptitude for the work, but they’re generally not technicians.

“Some of them have no background whatever, but we’re grooming them,” says Prochilo. “It’s a good way for the industry to attract fresh individuals, people who haven’t yet decided on a career path. We give them a three month trial period. After that, they can decide if they want to continue, and we can make the same sort of decision about them.”

Prochilo makes it clear that it’s not just about finding body techs, or fitting people into a mould that doesn’t suit them.

“The end goal is usually for them to become apprentices, but we play to people’s strengths,” he says. “We get them to learn a little bit of everything to find out what those strengths are. If they’re not strong as a body tech, then we can set them up with a plan to become something else.”

The true test of any human resources plan is simple. Is it working?

“One of our candidates is registering as an apprentice, and another is very well suited to quality control, as he’s very meticulous,” says Prochilo. “We have a third coming on as an entry level repair planner.”

While there are certainly still challenges in finding qualified people, some facilities are managing to overcome those challenges.

Whether it’s growing your own or looking outside the usual places, there are still ways to staff your facility. CRM

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EXECUTIVE VISION

Technology

By Darryl Simmons

E

Core

Mitchell’s Alex Sun on OEMs, predictive estimating and the power of harnessing data.

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 Alex Sun, President and CEO of Mitchell International. Collision Repair magazine’s Publisher, Darryl Simmons, sat down with Sun at SEMA 2015 to discuss what we can expect to see in the next five years.

Darryl Simmons: Hi Alex. Thanks for joining us. Currently, 75 percent of dollar volume in the collision repair industry is done by consolidators. How do you see this trend panning out over the next couple of years?

Alex Sun: I think it’s just more continuation of that trend. I think that almost everybody will acknowledge that in certain markets there are still too many collision repairers, so there will continue to be consolidation, and potentially even a culling could take place. If anything, the market will probably become a little bit more concentrated.

I think the large provincial insurance carriers are committed to their strategic partners in the collision repair industry, and have a lot of incentive to continue down the path of furthering those relationships. This will probably happen through a combination of setting relatively high standards, and also recognizing shops that meet those high standards with further commitment in terms of the sheer volume of work they will do with them.

I think the good news for the industry overall is that, in the last year or so, frequencies are up. I don’t believe that’s going to change in the foreseeable future. So the good news is that I think it’s going to be a relatively healthy environment for a collision repairer.

The initial step is exactly as you’ve described it. That’s the kind of work we’ve done, with integrating Toyota repair proceduresToyota Recommended Repair Procedures into our estimating solutions, as well as BMW’s integrated repair procedures.

I think the OEMs have a broader strategy that they’re exercising right now, in that they’re trying to create a closer connection to the collision repair process, because they have a more complete vision of what they think the customer experience needs to be.

They have a vision of having a stronger hand in the customer life cycle, because their job is to perpetuate that life cycle over and over again. And obviously they have lots of issues they want to einsure in the meantime, like their quality and safety standards.

I think, over time, we will not just be incorporating that repair information into our systems, but providing feedback to our partners at Toyota or BMW if we were to see anything we thought was unusual or inconsistent with what we think is a balanced view of safe repair. I think the OEMs are completely open to feedback, and we’ve certainly enjoyed a pretty long history of working with OEMs in our 69 year existence. We’ve had partnerships with OEMs for many years.

DS: When we look at the new standards, the OEMs are playing a much bigger role.

Do you see Mitchell developing a closer relationship with the OEMs to develop standards on behalf of the insurers and the repairers?

AS: I think our role is to do what we’ve always done in the industry, which is trying to be the best possible objective party in the process of providing repair information.

DS: In your unique position between balancing the needs of the insurers and the needs and desires of repairers, you act as an adjudicator almost. How do you think that’ll play out in the next five years or so, in terms of less friction between insurers and repairers?

AS: I do think there is clearly the potential for increased friction as the OEMs gets more proscriptive. I think it will increase

56 COLLISION REPAIR COLLISIONREPAIRMAG.COM

our level of diligence, and our role in trying to arbitrate that.

Many of the OEMs have tried to position themselves in the last five years as being really strategically competitive for the next decade, so I think we’re going to see kind of an ebb and flow of friction, and we’ll work through it, as more and more OEMs start to exercise themselves in that regard.

DS: What’s new and exciting at Mitchell?

What’s coming down the pipe that we can look forward to?

AS: We’re at our core a technology company, so it’s really all around what kind of technology products or enhancements we’re bringing to market.

We try to consolidate everything that we offer into one platform, so that we can deliver it more easily. In the old days people bought their technology solutions piecemeal, but we’re offering everything through RepairCenter, and depending on a collision repairer’s needs, they only provision on what they need.

We’re doing some digital marketing for collision repairers. We’re also doing a lot with the mobile side, because it’s becoming really evident that even people who work in the office environment in the collision repair shop don’t want to be tethered to a desktop, and people are becoming much more comfortable with doing truly productivity oriented work on mobile devices, so we’re making a big push along those lines as well.

Ultimately, we’re adding a lot of features and improvements to how collision repairers communicate with insurance companies. Our shop communications platform is changing dramatically to make it easier to communicate with insurance companies.

EXECUTIVE VISION

A lot of what we do is really about trying to make it easier to consume technology. Users of software today have a much higher expectation of what software will do for them. When I first started using technology decades ago, we used to joke about what software did forto us. Now it really is more about beautiful design, streamlining workflow and processing, and giving you access to data.

DS: When you mention data, it brings me to our last question, which is about predictive estimating. In the future we may see cars dictating the estimate as they’re hit. What do you see coming down that line?

AS: There are already plenty of applications that sit on an iPhone that you plug into the OBD port, that tell you a lot of good information about whether there’s been a crash. It could, if they wanted to extend the capability of that diagnostic computer, tell you where the car has been damaged. It definitely tells you the speed, and all those other things that can be part of information intake to predict an estimate.

The difference between estimating and predictive estimating is just inputs. It’s leveraging data or databases or a library of repair procedures to render an estimate using a system, instead of a lot of manual entry.

There’s no question in my mind that over the next five years, there’s going to be a pretty significant shift in the sophistication of what estimating systems will do. In its ultimate end state, which is probably not that far away, we’re probably going to get to a point where 90 percent of estimates are very, very high fidelity, and written by a system.

We’re mining the data that we have. We have over six million collision estimates running through our system in any given year. We capture over 500,000 photos a day through uploads to our systems. Our legacy is in creating repair reference materials, so we have an editorial staff of over 70 people that do nothing but collect information on how to repair vehicles. And we have a research centre.

I think in the future, people will be calling estimating “predictive estimating” or “smart estimating.” Not that estimating isn’t smart today. I think it is. It’s just more physical than it will need to be in the future, and a lot of that just has to do with the accessibility of technology. CRM

“A LOT OF WHAT WE DO IS REALLY ABOUT TRYING TO MAKE IT EASIER TO CONSUME TECHNOLOGY. USERS OF SOFTWARE TODAY HAVE A MUCH HIGHER EXPECTATION OF WHAT SOFTWARE WILL DO FOR THEM.” - ALEX SUN

Alex Sun, President and CEO of Mitchell International.

FEBRUARY 2016 COLLISION REPAIR 57

3D LOGO HORIZONTAL LAYOUT (STANDARD) SPONSORED CONTENT

Claims Management Solutions. Your Way.

By Domenic Ieraci

CREATING CUSTOMER LOYALTY It starts with culture, and ends with a happy policy holder.

O

perating a customer-centric business is essential in the collision repair space. How does a facility foster a customer-centric focus? It’s largely about attitude. Facilities with a customer-centric focus are run and staffed by people always working with the customer in mind and who strive to provide that customer with the best possible experience.

This approach starts at the top and filters down.

It isn’t a request or something that’s nice to have.

It’s a must. Communicating with clients in the way they prefer ensures the company stays connected with its customers. This kind of communication is well received and is perceived as delivering value.

In collision repair it’s becoming more vital for the repair facility to keep in contact with their customers in a way that is current and relevant.

This is why using database marketing with an upto-date customer retention management system is critical to informing and assisting clients with vehicle management and maintenance. This long-term investment helps ensure customer loyalty by keeping your brand top-of-mind.

Another key to success is staying on the cutting edge of technology. This isn’t just about having the latest equipment and tools. It means using data to better understand client needs and preferences for product/service innovation, customer loyalty programs and other marketing needs essential in maintaining customer connectivity. Organizations that analyze client feedback and use the data to drive innovation have a considerable advantage over the competition.

Once this is in place and you begin your outbound communication, remember to personalize the customer messaging. No one likes feeling that they are just a number.

Today, many leading insurers are also using customer data in a way that makes it easy to connect

2 PMS COLOUR VECTOR HORIZONTAL to their clients where theyLAYOUT work, live and play.

They do that by(STANDARD) making their information acces-

sible through computer, mobile and tablet. It is the age of digital and that means immediacy. The one thing that must be understood is that now, more than ever before, your current and potential customers are connected and informed.

Organizations often fall in to the trap of focusing too heavily on the transactional activities when it comes to interacting with clients.

However, there is a tremendous opportunity when we think “transformational.” Learn what clients really want, validate those needs and then implement a way to serve those needs within various channels of the organization. That is how to maintain a client-driven culture.

The first step has to be about attitude. This is imperative when developing a client-focused culture. The entire organization must buy in for the change to a customer-centric facility to be sustainable. Customer experience is a competitive differentiator. Provide a better experience and customers will come to you.

Successfully leveraging technology helps opera1 COLOUR VECTOR tional efficiencies in both production and HORIZONTAL LAYOUT administration. Client relationship management is (STANDARD) an amazing tool that puts you in touch and in front of your customer at any moment. This strengthens the relationship and this translates to more efficient use of time and human resources.

Prochilo Brothers Auto Collision is a well-respected, successful and family-owned auto collision MSO that operates in Toronto, Scarborough and North York. Starting with one location in Toronto, the company has since expanded locations and built a strong reputation for delivering customer-focused service.

58 COLLISION REPAIR COLLISIONREPAIRMAG.COM

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Trainingmatters.ca REPORT ON TRAINING POWERED BY

T H E T RA I N I N G P O RTA L F O R C O L L I S I O N R E PA I R

Road to Gold

The importance of ongoing training on the path to success.

By Dylan O’Hagan

T

he road to I-CAR Gold Class recognition brings critical skill development, recognition from the collision repair industry and the knowledge to complete repairs safely and efficiently in today’s increasingly sophisticated workplace.

The automotive industry is changing; new vehicles, new technology and new materials continue to challenge repair technicians to keep up. Ongoing skill development programs, beyond journeyman certification, are becoming an expectation rather than an option for repair facility owners.

Lorenzo D’Alessandro is President and co-owner of CSN-427 Auto Collision in Toronto. He was on the I-CAR Canada committee for five years and his shop was the first in Canada to achieve Gold Class standing. He recognizes the importance of continuous improvement programs.

“I-CAR training can be the difference between failure and success in the shrinking repair market,” he says. “If a shop is serious about sustaining its business in this ever changing industry, I don’t think they have much of a choice.”

The Gold Class recognition program

“IF A SHOP IS SERIOUS ABOUT SUSTAINING ITS BUSINESS IN THIS EVER CHANGING INDUSTRY, I DON’T THINK THEY HAVE MUCH OF A CHOICE.” – Lorenzo D’Alessandro

provides professional development in four role-relevant areas of collision repair. They are the Estimator, Refinish Technician, Steel Structural technician and NonStructural Technician. To gain Gold Class, a repair facility must have an individual complete a series of required courses to earn I-CAR Platinum recognition in each of the four areas.

Becoming Gold Class means the repair facility is committed to continuous skill development and is reaching for the highest level of training in the industry.

It comes with several benefits, both for the individual technician and the repair facility. D’Alessandro notes that this includes skill development, higher customer satisfaction and a better understanding of industry trends.

“We’ve experienced an increase in skill development and knowledge in our employees who participate, resulting in informed decision making and quality service repairs,” he says. “At CSN-427 Auto Collision, our customers recognize our commitment to training and the correct use of the latest equipment, which creates higher customer satisfaction and mainFEBRUARY 2016 COLLISION REPAIR 59

REPORT ON TRAINING

PRESENTED BY

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Larry French of CSN Collision Centres, Lorenzo and Frank D’Alessandro of CSN - 427 Auto Collision, Andrew Shepherd of I-CAR, and Flavio Battilana of CSN Collision Centres at the ceremony that recognized the facility as the first I-CAR Gold Class facility under the revamped program.

tains all factory warranties”.

The first step to becoming Gold Class is to pick up the phone, says I-CAR Canada Executive Director, Andrew Shepherd.

“The first step is to call us and we will have a consultant help verify their staff list.

We set up an online profile for all the staff members, then the manager in the shop can see the training that each person has taken,” he says.

Individual I-CAR platinum recognition is gained by completing a series of required, core knowledge courses. One advantage for Canadian technicians is that completion of a journeyperson certificate in automotive body repair or refinishing brings 28 equivalent I-CAR credits, so that subject matter doesn’t have to be re-taken.

For most technicians this leaves only a year or two of training to achieve Platinum status. Once gained, the recognition must be maintained through annual training.

The ongoing training requirement keeps repair technicians familiar with emerging technologies and the 200 new vehicle designs and redesigns scheduled to come out over the next three years. The automobile industry isn’t as simple as it once was, even 15 years ago, says Shepherd.

“Vehicles often weren’t that different from each other – if you knew how to section one

car, you knew how to do most others. Now there are dozens of steel strengths, different attachment methods, different bonding and sealing requirements,” he says. “Finding out the right repair method for each individual (vehicle) is absolutely critical now and the knowledge needed by a technician is easily ten-fold what it was years ago.”

When asked if his shop experienced any challenges as it pursued Gold Class recognition, D’Alessandro is positive. He says that his technicians didn’t face any challenges obtaining Platinum status, adding it was a matter of running classes on-site every two weeks for six months.

The biggest improvement D’Alessandro’s shop has seen is a better understanding of industry trends and improved communication with the original equipment manufacturers (OEMs).

Aside from technical proficiency, another benefit of Gold Class recognition lies in meeting new OEM requirements.

Over the last year, many Canadian OEMs have established certified repair networks which designate shops as official repair facilities. These shops participate in the marketing and customer retention initiatives of the OE, a new and potentially profitable sales growth avenue. Many of the OEMs require full or partial achieve-

60 COLLISION REPAIR COLLISIONREPAIRMAG.COM

ment of I-CAR Gold Class recognition.

The impact of I-CAR training can also be measured in improved cycle times and touch times inside repair facilities. Cycle time – a core measure of the efficiency of the repair operation - measures how fast quality repairs are achieved while touch time is how long the technician worked on the vehicle.

In 2012, I-CAR US began a key performance indicator study to measure cycle and touch times in 28 repair facilities taking I-CAR training. The study showed shops improved cycle times by over 14 per cent and touch time by over 33 per cent as they worked towards Gold Class recognition.

I-CAR Canada is operated by AIA Canada, a not-for-profit organization, and all course revenues are re-invested in the program. This is one factor in making the courses more affordable. A four hour class is $135, or $100 if the facility is Gold Class recognized. As Lorenzo D’Alessandro declares, “you can’t afford not to train.”

“If your shop has never done I-CAR and you want to move to Gold Class status, it’s an initial investment of about $10,000”, notes Andrew Shepherd. “But remember that people are your most important asset.

This is a critical investment in business success and cannot be looked at as a costdriven exercise.” CRM

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.

Become a member today and help build your future.

For more information contact Ellen Smith, Director of Sales & Marketing, at ellen@mediamatters.ca or 416.536.9285.

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TRK Towing rescues truck stuck in ice Recoveries are rarely more dramatic or exciting than this. A pickup truck broken through the ice and was submerged in the water off Regina Beach at Last Mountain Lake. The owner of the truck had been on his way to an ice fishing competition when his truck fell through the ice. Luckily, the driver escaped, but his truck still needed to be recovered. Enter TRK Towing.

Tyler Temple of TRK Towing was one of the team involved in the recovery. “It was a big ice cube,” Temple says. “The interior was full of water, and it was just frozen like an ice cube.”

Temple stated that safety was his biggest priority in recovering the vehicle, especially as the ice no thicker than 5 cm for the majority of the recovery. Chain sawing through the ice was required to clear a path for the frozen truck.

A spokesperson for SGI says that while submerged vehicles are assessed on a case-by-case basis, the truck was likely a total write off.

Vehicles from TRK Towing involved in the recovery.

The partially submerged truck. It took hours and a lot of work to free it from the ice.

Freed from the ice. The ice sheet was only 5 cm in many places, making the recovery especially dangerous.

Three police officers alleged to have colluded with tow operator An ongoing Toronto Star report into police misconduct has revealed that three Peel Region officers have been alleged to have collaborated with a tow truck operator to write false collision reports. One officer has received a criminal conviction for his involvement in the scheme, while two others were subjected to internal discipline.

Wayne Isaacs, a tow operator based out of Brampton, faces criminal charges relating to the scam, which is alleged to have defrauded insurers of nearly $1 million. The alleged fraud consisted of one veteran officer writing fraudulent reports, while two

other officers would alert Isaacs to the location of crashes using confidential police information.

Peel police Const. Carlton Watson had known Isaacs since the early 1990s, and considered him a friend, according to the Star report. He provided Isaacs with reports for three fictitious accidents in 2010, according to the court decision from Watson’s criminal trial.

Const. Matthew Pekeski and Officer Christy Clough were also discovered to have texted Isaacs information about crashes before dispatchers had broadcast the news to fellow officers.

For advertising inquiries, please contact Mike Davey at 905-370-0101 or advertising@collisionrepairmag.com.

62 COLLISION REPAIR COLLISIONREPAIRMAG.COM

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The Right peop

Latest Tundra Take-Back project targets communities in Labrador

By Mike Davey

Canadian Auto Recyclers: So Pat, what is new with CAR-MS QRP? Pat Ryan: A lot has happened in the past year. We are in the midst of rebranding to QRPCanada, we have grown our membership from 20 recyclers to 51 recyclers, plus an aftermarket parts distributor. We were fortunate to find many enthusiastic new members in our home province of Ontario and we were joined by four new members from Atlantic Canada and another 12 from the QRP BC organization. With the new additions to QRPCana-

Darrell Pitman of P and G Auto got a tattoo to commemorate his part in the second phase of the Tundra Take-Back project.

da we now have four Multi-Yard Owners in our group, which is

Canada’s auto recyclers started something incredible in 2014 when industry partners banded together to clean up the Arctic and help Nunavut’s Arviat and Gjoa Haven communities establish sustainable models for dealing with hazardous vehicle waste. But they didn’t stop there. The project continued in 2015, this time targeting communities in the isolated region of Nunatsiavut.

Unlike urban and rural areas, many communities in the far north face significant challenges with effective vehicle recycling.

Typically, end-of-life vehicles are simply piled up at the local dump. It’s a daunting task, but the Tundra Take-Back project proves that

where’s there a will, there’s a way.

Volunteers from the recycling industry and Summerhill Impact flew into the communities of Nain and Hopedale in the fall of 2015 with one mission: teach local people the proper way to depollute vehicles, thereby preventing them from contaminating the local land and water sources.

Andrea Hoyt is the Environmental Assessment Manager with the Nunatsiavut Government, Department of Lands and Natural Resources. She notes that the logistics of the operation were challenging, but the results were well worth the effort.

“Shipping season is typically July to the

Continued on page 66.

a trend I see growing in the future. In addition, we launched our new website, www.QRPCanada.ca, in the fall. We have also moved our head office to Brampton where we are sharing office space with one of our newest members, AADCO Auto Parts. Earlier in 2015 we expanded our Parts Runner to include five new members who joined QRPCanada. We now have 19 recyclers on the Parts Runner with four distinct truck

64 COLLISION REPAIR COLLISIONREPAIRMAG.COM

people, the Right parts, the Right Solutions!

Recycling’s Progressive Network QRPCanada goes nationwide and builds connections for customer service.

Recently Canadian Auto Recyclers magazine sat down with Pat Ryan of CAR Management Solutions QRP Canada to discuss some of the advances the organization has made recently, and what’s planned for the future.

routes that interconnect all the participating recyclers.

treal warehouse currently serves our Ontario members and their Dartmouth warehouse is able to serve all of At-

CAR: Are you expanding your group for a reason?

lantic Canada.

PR: Well, before 2015 we were the largest group of recyclers in Canada but we were regionalized in Ontario with

CAR: Tell us more about the QRPCanada Parts Runner.

one Atlantic recycler in the group. As I started to mar-

PR: The Parts Runner began several years ago and was

ket the group to collision repair organizations it became

borne out of the necessity to ship parts damage free be-

apparent that they were seeking a more national based

tween Ontario recyclers. What started out as two truck

solution for their non-OEM parts procurement needs.

routes has grown to four routes with 19 recyclers in On-

To satisfy those needs, we made the decision to expand

tario participating. We are looking to expand the Parts

CAR-MS QRP and thus QRPCanada was born. I have

Runner to Quebec once we sign up some new mem-

spent time in Alberta and Quebec speaking with recy-

bers in that province. During 2015 the participating re-

clers as we look to expand the group. I will be spending

cyclers moved 42,000 parts amongst themselves. The

more time this year travelling the country like a recycling

inter-yard commerce that was generated from all this

Pied Piper issuing a clarion call to recyclers to join us on

sales activity is in excess of $10 million, and a good per-

our adventure.

centage of that would be incremental new business to the participants. That isn’t the primary benefit though;

CAR: What is your goal for 2016?

the recyclers that are on the Parts Runner have the con-

PR: I have several goals for this year. My quest to recruit

fidence that the parts that they purchase from one an-

the best-in-class recyclers across the country will con-

other will arrive damage free, so they in turn have the

tinue and it is my expectation that we will have 40 new

confidence to commit to their customer a concrete de-

members by the close of 2016, thereby doubling the size

livery date. This in turn generates more business from

of QRPCanada again. Additionally we want to secure

the shops as they receive top quality damage free parts

Preferred Vendor Agreements with collision and me-

from their recycler.

chanical repair groups across the country.

CAR: Thanks for speaking with us. Pat, how can a CAR: You mentioned earlier that there is an aftermarket

prospective recycler get in touch with you?

parts distributor in your group. Who are they?

PR: No problem. I can be reached at patryan@car-ms.

PR: I began discussions with Monidex International in

ca, also check us out at our new website, www.QRP

Montreal last March and we are very pleased that they

Canada.ca.

joined QRPCanada in August. With their vast inventory we have been able to service our collision and mechanical repair customers with one stop shopping for both their recycled and aftermarket parts needs. Their Mon-

Tundra ... continued from page 64.

end of November. At other times of year the pack ice in the Labrador Sea prevents ships from coming through,” she says. “It was a challenge, but there are great benefits. Community members got a chance to learn how to properly decontaminate vehicles, and it provided employment in addition to helping to clean up our communities.”

Jennifer Court is with Scout Environmental (formerly Summerhill Impact) and one of the volunteers with the team in Hopedale. She says that it’s not just a matter of the vehicles being unsightly. In Nain, the local dump is very close to the ocean. Contaminants leaching into the river can have a disastrous impact on the quality of life and health of the local people.

“Food is very expensive there,” she says.

“Many of the Inuit people in those communities depend on fishing to supplement their food supply and to make a living, so it’s essential that the water remain uncontaminated.”

The tools used in Tundra Take-Back may not be what many auto recyclers are used to, but there’s no arguing with results.

“We did about 40 vehicles or so, depolluting them and then flattening them with an excavator,” says Darrell Pitman of P and G Auto. “The tools and equipment we used are staying in the communities, so the people we trained can continue the work on their own.”

The project will certainly continue, and there’s at least some chance that it will expand next year to include more communities.

“Long term, we’d like to run on a 10 year cycle,” says Hoyt. “The decontamination would continue on a regular basis, then the scrap metal would be shipped out every 10 years or so. Next year we’d like to see it expand to include the southern communities.”

Note that these communities are only “southern” by the standards of Nunatsiavut.

They’re still relatively inaccessible, and cleaning up their local dumps would have

just as big of an impact as it has in Nain and Hopedale.

It’s hard to overestimate the positive impacts from the Tundra Take-Back project.

The goal of the project—removing potentially dangerous contaminants by recycling end-of-life vehicles—is laudable in and of itself. However, the positive impacts don’t stop there. There are both environmental and economic benefits that have been realized, and these will be ongoing.

In short, automotive recyclers stepped up and helped the residents effect change in their communities, and it’s a two-way street.

Judging by the tattoo on Darrell Pitman’s arm commemorating the trip, the communities changed them right back.

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ARC Carmag tall2.25x9.75 final.pdf

1

IN MEMORIAM: MIKE MOFFAT Representing PROFESSIONAL AUTO RECYCLERS across Canada

www.autorecyclers.ca AARDA Alberta Automotive Recyclers

& Dismantlers Association

(780) 478-5820 www.aarda.com ARPAC

Association des recyclers de pièces d’autos et de camions inc.

(450) 504-8315 www.arpac.org ARAAC Automotive Recyclers Association

of Atlantic Canada (902) 892-0138

ARM B-CAR

It is with deep regret that we must report the passing of industry from his work with Liberty Tire Recycling.

supporter of the Ontario Automotive Recycling Association and the industry as a whole, and tirelessly worked

Automotive Retailers Association BC Auto Recyclers Division

(604) 419-4836 www.ara.bc.ca

OARA

Moffat passed away in late November in Brantford, Ontario, after a year long battle with cancer. He was a great

Automotive Recyclers of Manitoba

(204) 667-7882 www.arm.mb.ca

Mike Moffat.

Mike Moffat. Many in the Canadian automotive recycling

www.araac.ca

Ontario Automotive Recyclers Association (905) 383-9788

SARA

www.oara.com

Saskatchewan Automotive Recyclers Association (306) 751-1787

in the tire recycling industry he loved. He will be missed by many.

Offering the following Programs:

Moffat was the beloved husband of Lynda (Shaver) Moffatt, and a loving father to Adam (Rachel), Scott, and Erin (Tom), and the grandfather of Mikey, Mikaela, Xander, and Audrey. Moffat will also be remembered by his brothers and sisters, his nieces, nephews, aunts, uncles, cousins, the Shaver family, and not least by the many people he touched through his years with Liberty Tire Recycling.

The family honoured his life with a visitation at the Hyde & Mott Chapel, R.H.B. Anderson Funeral Homes in Hagersville on Tuesday, with a celebration to remember his life held in the chapel on Wednesday November 25.

As an expression of sympathy, donations may be made to the Simcoe SPCA. Condolences for his family may be left at rhbanderson.com.

Steve Fletcher, Managing Director steve@autorecyclers.ca • tel: 519.858.8761 London, Ontario, Canada OCTOBER 2015 COLLISION REPAIR 67

2014-01-03

1

CAR-MS QRP EXPANDS, LAUNCHES ONLINE PARTS LOCATOR CAR-MS QRP is expanding again, this time in Ontario. The network of professional automotive recyclers also recently announced new members in Atlantic Canada, greatly expanding the network’s coverage.

The new facility in Ontario is the second location of Hotch’s Auto Parts, located in Bowmanville. Pat Ryan of CAR-MS QRP Canada would like to welcome the second location of Ho tc h’s A uto P a r ts to the expanding group of recyclers. Hotch’s Bowmanville location is located right off the 401 and will complement the company’s existing

operation in Belleville, Ontario.

“We now have 40 members in the QRP Canada family, serving all of Ontario and Atlantic Canada,” says Ryan. “This puts us halfway to our goal of bringing together the 80 best recyclers across Canada.”

Further cementing the cross-Canada approach, CAR-MS QRP has recently unveiled its new Parts Locator at qrpcanada.ca. Through this online tool, repairers and consumers can access all of the inventory available from QRP Canada member recyclers.

“You can search by VIN or make and model,

search for just one part or several, and it’s filtered by location,” says Ryan. “Our member facilities have a lot of great parts, and this tool makes it easier to find them than ever before.”

For more information on CAR-MS QRP, please visit car-ms.ca. The parts locator can be found at qrpcanada.ca.

Impact Auto Auctions purchases Sudbury Auto Auction Impact Auto Auctions has announced it has purchased the assets of Sudbury Auto Auction (SAA). Located at 90 National Street in Sudbury, the auction, which covers 17 acres, serves the northern Ontario fleet and dealer communities. Through the transaction, Impact Auto Auctions also becomes the sole owner of Impact Auto Auction Sudbury.

“We are excited to be adding the talented team at Sudbury Auto Auction to our national auction network,” said Terry Daniels, Managing Director at Impact Auto Auctions. “Owners Dale and Lynda Harnden have been great partners for more than 23 years in helping to develop and serve the northern Ontario salvage market. We look forward to leveraging the strengths of both businesses and continuing the great tradition of whole car services that SAA is known for in this important market.”

Family-owned, SAA began its almost 30 year presence in the Sudbury community as an auction service in 1986, when Lynda Harnden’s

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father built the business from scratch. SAA sells dealer, rental, lease, fleet, and finance vehicles. Secondary to that business is a public auto auction company known as Nor Ontario Auctions, which provides public buyers with the opportunity to purchase dealer, repo and corporate consigned vehicles at auction prices. This sale also includes commercial vehicles and a variety of recreational vehicles such as ATV’s, boats, campers, motorcycles, snowmobiles and other items.

“We felt honoured to be asked to formally join Impact Auto Auctions,” said Dale Harnden about the transaction. “It’s been wonderful doing business with the team from Impact Auto Auctions who we’ve come to know and trust over the last 23 years. We’re excited about this opportunity and we expect this relationship will only grow stronger in the years to come.”

The Harndens will continue to support and consult with SAA during and after the transition.

The business will continue to operate under the Sudbury Auto Auction name going forward. The purchase of SAA will give Impact Auto Auctions’ Remarketing Division the opportunity to expand into northern Ontario.

F o r m o re i n f o r m a tion about Impact Auto Auctions, please visit impactauto.ca.

COPART OPENS MONCTON FACILITY, INTEGRATES MONTREAL Copart Canada has announced the grand opening of the Moncton, New Brunswick location and the full integration of Copart’s Virtual Bidding – The Third Generation (VB3) technology at the Montreal, Québec location.

Both of the locations have already successfully hosted online auctions using VB3 technology, and have reportedly received a high level of engagement from Copart’s international buyer base.

“We are excited about our growth in Canada and our ability to provide a firstclass, online auction experience in both English and French Canadian,” said Steve Macaluso, Managing Director of Copart Canada. “Launching these locations as a part of Copart Canada has been a team effort across the company.

We are also grateful for the support from these communities as well as our insurance partners.”

Copart Canada acquired Encan Berpa in November 2013, and after upgrading and developing new technology, VB3 was Vinnie Mitz, President of Copart; Steve Macaluso, Managing Director for Copart Canada; fully integrated and translated to French Robert Goguen, at the time MP for Moncton—Riverview—Dieppe, and Peter Beers, Canadian. Prior to this upgrade, the aucGM of the Moncton location of Copart, at the new facility’s grand opening. tion was a traditional live auction with a The Moncton, New Brunswick location extendance numbers prior to the integration. broadcast web tool. Now, with VB3, this locapands Copart’s coverage of Eastern Canada, Online auctions for Montreal are now hosted tion joins the rest of the Copart auctions using representing Copart’s commitment to the weekly, on Tuesdays at 10 am EST. the leading patented auction technology.

Canadian marketplace. For more information Copart Moncton hosted its first auction Copart Montreal hosted its inaugural, fully on Copart Canada, please visit copart.com/ on October 13 and will be hosting an auconline auction on November 3, experiencing Canada. tion every second Tuesday going forward. record auction attendance compared to at-

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Malaysia to host next International Roundtable on Auto Recycling

By Mike Davey

It’s official. The 9th International Roundtable on Auto Recycling (IRT) will take place at Hatten Hotel Melaka, Malaysia on April 20 to 23, 2016.

The IRT brings together the leading international automotive recycler associations, industry players, officials, guest speakers and local auto recyclers to discuss global auto recycling issues.

Each IRT is unique to the local hosting association. The event takes place every two years and provides a platform for recyclers to share information about emerging technology, regulatory trends and business opportunities. It also provides a place to recyclers to showcase and share industry best practices.

The 2016 IRT will be hosted by the Malaysia Automotive Recycling Association (MAARA).

The conference really gets rolling on April 21 with a visit to a local recycling operation, followed by an environmental event and a networking dinner in the eventing. The following day’s event include morning and afternoon sessions and a gala dinner. The last day of the IRT focuses on country reports and the official round-up and conclusion of the conference.

For more information on IRT 2016, please visit irt-autorecycling.org.

The 2016 IRT will take place at Hatten Hotel Melaka in Malaysia.

Europe’s largest recycling show to include outdoor demos Automotive recycling is a global industry. In Europe, the biggest event for auto recyclers is the Complete Auto Recycling and Secondary Materials (CARS) trade show. This year’s event takes place July 13 and 14, 2016 at Donington Park Circuit in Derby, United Kingdom.

With the 2014 event attracting over 75 exhibitors and more than 1,200 attendees from 25 countries including Canada, India, Japan, Germany, the US and Australia, the 2016 event is predicted to be bigger than ever before. The exhibition offers the opportunity to find out what products and services are available to make your business more profitable. Suppliers can demonstrate their products in a realistic setting.

According to CARS trade show management, this provides you with the opportunity to correctly gauge the effectiveness of one product over another. The CARS trade show has a strong focus on new products and equipment, but the show also offers a full slate of education and discussion. The Conference Theatre offers a hard hitting two-day program designed to help you stay abreast of key issues affecting the sector, providing you with information on how to protect your business and facilitate growth going forward. The Skills Lab offers you the chance to up-skill your staff and provide

70 COLLISION REPAIR COLLISIONREPAIRMAG.COM

valuable training from industry experts.

A key feature of CARS 2016 is the outdoor live demonstration area. It allows attendees to view practical applications of products and machinery in their intended environment, giving recyclers a better view of how the equipment will work in a real life setting.

Tickets for CARS 2016 are available at no charge. Registration is available through cars-expo.com.

At the outdoor demo area at CARS 2014. Outdoor demos allows exhibitors to showcase equipment capabilities in a real life setting.

Reid’s Automotive Recycling wins environmental sustainability award Reid’s Automotive Recycling has been chosen as the 2015 recipient of the Burnaby Board of Trade Excellence Award in the Environmental Sustainability Award Category.

The Burnaby Business Excellence awards honour and celebrate businesses, entrepreneurs and not-for-profit organizations for their contributions to the local economy and community. The Environmental Sustainability category is for a business that has made protecting, sustaining and enhancing natural resources an integral part of its business plan by adopting strategies and activities that reduce energy and materials consumption and/or eliminates waste and pollution.

Those who know something about Reid’s Automotive Recycling won’t be surprised to hear about the new award. The business and its owners have long been staunch proponents of environmentally sustainable business practices, recently becoming Climate Smart certified.

“We are so grateful to our customers who instantaneously better the environment when choosing Reid’s parts and services in vehicle

repair,” says Teresa Reid.

Reid’s Automotive Recycling is located at 6064 Trapp Ave. in Burnaby, BC. The facility is also an ICBC-approved alloy wheel repair centre. For more information, pleas visit reidsauto.ca.

LEFT: Matt Reid accepting the finalist award for Environmental Sustainability.

RIGHT: Teresa Reid accepting the Environmental Sustainability award on behalf of Reid’s Automotive Recycling & Alloy Wheel repair from George Strappa, Dean of Business at Douglas College.

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RECYCLING I

COMMODITYPRICES Low prices for metals are changing the way we do business.

By David Gold

I

feel it is once again important to highlight a trend that everyone is hearing about regularly and watching closely these days. Commodity prices have been steadily declining and have reached levels that many of us have never seen. My last update on this topic came in 2005, when the market was very volatile with large changes in the prices paid for scrap by the processors. Today there is a relatively grim outlook on all types of commodities.

Auto recyclers have to adapt to this new norm.

It significantly affects what we can pay for vehicles with minimal parts value to your industry and to all stakeholders. The reality of the situation is that all of

they look at their business.

I have heard projections that one out of every three scrap yards may go under in the next two years.

Whether or not that holds true, it’s an important message for all of us to reflect on. It’s not only innovation and advancements in technology that shape the future. It’s the world economy.

The cost of doing business is also increasing disproportionately to the revenues generated in the scrap and related scrap auto industries. In some markets the government regulations and scrutiny is intense, representing a further drain on the economy.

Certainly these threats need to be recognized and

AUTO RECYCLERS HAVE TO ADAPT TO THIS NEW NORM.

this is out of our control and while our customers are feeling the pinch from the reduced revenues generated from their scrap, we as an industry are doing everything we can to ride this economic decline out and stay in business with margins that have been reduced drastically. Our business practices have to be tightened up and our key focus has to be primarily on the auto parts business.

Recyclers at this point can’t even speculate on what to do other than to buy at market prices and sell at market prices to keep the business flowing. What is even more interesting is that all types of metals, ferrous (iron) are down in price significantly as are all non-ferrous categories (aluminum, platinum for example), in unison. There isn’t much light at the end of the tunnel.

Much like the collision repair industry, auto recyclers perform many manual and labour intensive business practices and as such we employ many people. The importance of our survival to the communities we are located in is substantial for this reason and because of the benefits and services that we provide. There is no question that we are all working harder and harder to keep our businesses profitable and at this time I can tell you that auto recyclers are all evaluating their overheads and changing the way 72 COLLISION REPAIR COLLISIONREPAIRMAG.COM

understood so as not to be caught off-guard. At this time we are forced to re-evaluate the business and take the time to figure out what is in our best interest in terms of the direction to take the business going forward.

It’s not all doom and gloom as the key component of the professional auto recycler and dismantler is the sale and reuse of green OEM auto parts. Auto recyclers who are paying close attention to their business are getting stronger and alliances are being made to proactively serve our customer base.

Keeping on that positive tone and getting back to the heart of this article, one commodity reduction that we all have to be thankful for is the prices paid at the pumps for our fuel. The price dropped four cents a litre this morning and that is welcome news for all of us. People can afford to fuel up and drive, so regardless of the late winter this year we can still expect cars to be introducing themselves to each other on our roads and that should keep us all busy.

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.

FINANCIAL INSIGHT

NEWYEAR Consolidation proceeds at high velocity.

ADVERTISER INDEX

By Jeff Sanford

COMPANY

PAGE

3M............................................9 AADCO Auto Parts..................68 AkzoNobel..............................75 ARC........................................67 Assured Automotive...............51 Auto Quip Canada.....................8 Axalta............................11, OBC BASF...................................4, 16 Boston Auto Wreckers............69

I

t was an active and exciting year in the collision repair industry.

The steel-versus-aluminum debate continued to play out. The race to consolidate the industry accelerated to record speeds.

Just before the holidays, news broke that CARSTAR Canada had been sold to Driven Brands. Just six weeks before, Driven Brands had acquired the US CARSTAR chain.

year that the company will also be kicking tires on collision repair facilites in Australia this winter.

A recent revamp of the board of directors at Fix Auto saw some of the executives important early in the company’s history step down and some new faces added to the roster, including the head of mid-level private equity at the Caisse, Stéphane Léveillé. The company is tuning up for some big moves

Carcone’s Auto Recycling ....71 Cardinal Couriers...................27 Car-O-Liner............................13 Car-Part.com.........................73 CAR-MS QRP..........................65 CARSTAR...............................38

YOU CAN BET 2016 WILL PROVIDE SOME MORE GREAT ACTION.

Collision 360..........................14 Color Compass......................23 CSN........................................21 D&E Distributors.....................12 Dominion Sure Seal................43 DV Air Systems..........................7 Eurovac..................................10 Fix Auto .................................29 Garmat...................................19 GFS........................................32 Hilltop Auto Recycling............69 Hollander................................47 ICA.........................................52 Impact Auto Auctions.............33 LKQ Sonshine.........................66 Mirka......................................18 Monidex .................................44 Ontario College of Trades......15, 30 PPG.......................................2,3 Prochilo Brothers...................58 Prospot..................................37 Rondex..................................25 Spanesi..................................28 Spraymax...............................31 Stark Auto Sales.....................63 Steck Mfg. Co..........................24 Valspar...................................35

74 COLLISION REPAIR COLLISIONREPAIRMAG.COM

Now that the blockbuster deal is public the new shape of the North American collision repair space comes into sharper focus. Driven Brands is going to be a serious competitor in the collision repair space. CARSTAR Canada joins a much larger portfolio of auto industry-focused companies.

Along with CARSTAR US, the company also owns Maaco, Meinicke and DriveN-Style, and has created a new division, the Paint & Collision business segment.

The combined CARSTAR business (Canada and US) now has a combined 450 locations and $700 million of annual sales, making it the largest brand in both sales and locations in the collision repair industry. Driven Brands now has a footprint of more than 2,200 franchise locations in the US and Canada, generating nearly $2 billion in system sales.

This is really big business. Can the other players in the race keep up?

Fix Auto also announced a major deal this year, with the mighty pension fund the Caisse de dépôt et placement du Québec. The deal will help provide funding for the company’s continued global expansion efforts. Fix Auot already operates in France, the UK and Turkey. But news emerged late in the

in 2016. Another big board announcement is promised for early in the year.

Not to be outdone, the race team made up of the Ontario Municipal Employment Retirement System (OMERS) and Dallas-based Caliber Collision has been packing on new stores.

Ti m Patt e r s on , a d i re c t or w it h OMERS Private Equity, pointed out in an interview earlier this year that the consolidation plans for Caliber are “ahead of schedule.” At the time of that conversation, OMERS had doubled the size of Caliber Collision in just a year and a half, adding well over 100 locations through that time.

Out in Winnipeg, the Boyd Group also continued to make acquisitions at a rapid pace, passing a milestone with the acquisition of its 300th US location.

It seems announcements of new stores come every other week now. As the race to consolidate the collision repair industry speeds up you can bet 2016 will provide some more great action. CRM Jeff Sanford is the Staff Writer for Collision Repair magazine. He can be reached at 905-370-0101 or at jeff@ collisionrepairmag.com.

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2015-10-08 2:58 PM