BIG BUSINESS: SPOTLIGHT ON HEAVY TRUCK REPAIR
FUTURE LANDSCAPES
Get a global view with exclusive coverage of IBIS 2016!
THE NEXT GENERATION Full report on Fix Auto’s 2016 conference.
READY TO TRAIN? ICBC passes the training torch. But is ARA prepared?
BUSINESS
EDGE Dave Miller of Fix Auto has risen to the top in two different worlds.
PLUS: Crescent Industries celebrates 30th anniversary, CARSTAR and Axalta hit the track in KC, the WIN Conference and much, much more!!! Volume 15, Number 4
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TECH TALK
JUNE 2016 COLLISION REPAIR  4
CONTENTS
ON THE COVER 35 REPAIR CHAMPION Dave Miller of Fix Auto has found success on and off the water. Volume 15 Issue 4, August 2016
FEATURES 40 EXECUTIVE VISION JF Champagne of AIA Canada on what’s next for the association. 41 CANADIAN MADE AIA Canada’s accreditation program is already lining up support. 42 REPAIR OR REPLACE? Some parts can be only be used once. 45 BC’S TRAINING QUESTION ICBC offloaded training onto ARA. What happens next? 65 STUDENTS FIRST KKT Collision does its part to encourage new technicians.
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Advanced technology and the need for training under discussion at IBIS 2016. Check out our exclusive report!
66 TOP SPEED CARSTAR and Axalta hit the track in Kansas City. 68 30TH ANNIVERSARY Crescent Industries celebrates three decades! 71 LEGENDS OF THE INDUSTRY There’s no-one like Nana!
NEWS 08 COLLISION REPAIR 75 TOWING & RECOVERY 77 RECYCLING NEWS
55
Big business: Inside the world of heavy truck repair.
BIG BUSINESS: SPOTLIGHT ON HEAVY TRUCK REPAIR
FUTURE LANDSCAPES
Get a global view with exclusive coverage of IBIS 2016!
READY TO TRAIN?
THE NEXT GENERATION
BUSINESS
EDGE Dave Miller of Fix Auto has risen to the top in two different worlds.
PLUS: CARSTAR and Axalta hit the track in KC, J.F. Champagne of AIA Canada on the new BC division, the WIN Conference and much, much more!!! l August 2016
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$7.95
ON THE COVER: Dave Miller of Fix Auto’s Miller Group in BC. PHOTOGRAPHY BY IAN AKERS.
Full report on Fix Auto’s 2016 conference.
ICBC passes the training torch to ARA.
Volume 15, Number 4
51
Fix Auto brings the focus to the next generation at its annual conference in Calgary.
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DEPARTMENTS 06 PUBLISHER’S PAGE by Darryl Simmons New foundation. 29 WHO’S DRIVING? by Jay Perry Build a better boss. 30 PRAIRIE VIEW by Chelsea Stebner Culture matters. 32 TRAINING by Andrew Shepherd Our solution. 86 FINANCIAL INSIGHT by Jeff Sanford Deflating the hype.
AUGUST 2016 COLLISION REPAIR 05
PUBLISHER’S PAGE FEATURES
NEWFOUNDATION A better industry is rising in place of the old. PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com
By Darryl Simmons
A
s I write, I’m watching excitedly out of the corner of my eye a huge excavator tearing down a house across the street in preparation for something newer, and without a doubt, better. Over the years I’ve watched as the owners patched up here and there, with a new roof, a deck and a driveway. By the time you read this, that old place will be history and a much better new one with a strong foundation and the latest in building materials will stand in its stead. There is an analogy here with today’s collision industry. This certainly is a stimulating time for owners and managers in Canada’s collision repair community. Perish the thought this is the “same old, same old” and that doing
education tracks as well as a show floor where you can discuss these advancements. Another significant change already in place and moving at the speed of light are the OEM programs with specific needs in training and equipment. Different OEMs are insisting on processes that may have specific items that are similar, but not exact enough. This of course leads to more investments at the shop level. AIA/I-CAR have launche d a ne w accreditation program that will help mitigate costs and streamline OEM approva ls. Known as t he C anadian Collision Industry Accreditation Program (CCIAP), AIA Canada says it will establish a set of core standards for equipment,
EDITORIAL DIRECTOR MIKE DAVEY (905) 549-0454 editor@collisionrepairmag.com CREATIVE DEPARTMENT KAYLEE MCLEAN (905) 370-0101 kaylee@mediamatters.ca MICHELLE MILLER (905) 370-0101 michelle@mediamatters.ca 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 COLUMNISTS & CONTRIBUTORS DAVID GOLD, JAY PERRY, SAM PIERCEY, ANDREW SHEPHERD, CHELSEA STEBNER
START REFRAMING YOUR BUSINESS MODEL. business the way you always have is the way you should continue. One of the biggest changes just over the horizon wasn’t even a concept when you first opened your shop: autonomous cars. Full production is a lot closer than you may think. Tesla drivers are now roadtesting cars that can basically take you home without touching the controls. The recent fatal accident with one of their cars is only going to speed up the process by drawing more attention to the need for proper safety. The sooner you stop thinking of your shop as a place where you focus on dents, parts and paint, the better. Start reframing your business model to position your facility as a high-tech process where connected transportation and peoplemoving devices are scanned upon entry and exit to factory-specifications. One of the best ways to get and stay ahead of the curve is to attend a trade show. NACE and SEMA both have excellent
training and procedures. There are other programs available in the market, but this one has garnered the full support of Canada’s major networks. You can read about it on page 41. I think it’s fantastic to see competitors put aside their differences to support programs that are to the benefit of the entire industry. This program will undoubtedly follow the success and inroads made by I-CAR under the direction of Andrew Shepherd. Please make sure to get in contact with AIA to find out how you can benefit. I’m sure the new house across the street will be far better than the old one. And so will Canada’s collision repair industry going forward. CRM
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. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 455 Gilmour St Peterborough, ON K9H 2J8
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AUGUST 2016 COLLISION REPAIR 7
THE FRONT END
PEOPLE ON THE MOVE Carole Anne Elliott has joined the Fix Auto Canada team as a Senior Business Development Manager. She will be based out of Fix Auto’s Ontario office. The announcement was made by Tony DeSantis, Vice President of Sales for Carole Anne Fix Auto Canada. Elliott. Prior to joining Fix Auto, Elliott was employed in the rental car business for 15 years in business development and national sales roles. In her position with Fix Auto, Elliott will work to secure existing and new business through insurance, broker, corporate and fleet channels. “As a key member of the sales team, Carole Anne’s extensive experience will play an integral role in supporting and driving our sales objectives at the account level, while supporting our strategic partners at the location level. We are glad to have her on board and welcome her to Fix Auto,” said DeSantis. Fix Auto has also announced that Mike Heska has left his role as Strategic Partner Developer for Fix Auto Ontario to take on a Mike Heska. new and interesting challenge as Managing Partner of Fix Auto Etobicoke. “Though Mike is no longer working at Fix Auto Ontario’s head office, we are thrilled to still have him be a part of the Fix Auto family,” said Daryll O’Keefe, Fix Auto Ontario General Manager. “On behalf of the whole Fix Auto Ontario team, I would like to thank Mike for his great work and wish him much success in his future endeavors.” Fix Auto Etobicoke is located at 55 Shorncliffe Rd. in Etobicoke, Ontario. Spanesi Americas has announced that it is expanding its team. The new hire is Gordon Michael, who joins the company in the role of Technical Training Instructor. “We are extremely pleased to announce that Gordon Michael has joined the Spanesi team. Gordon will be providing our customers and distributors with training and installation support,” said Timothy Morgan, Managing Director of Spanesi Americas. “I have previously worked with Gordon and know that his education and training experience will help Spanesi continue to
support our customers as we continue to grow.” Bringing more than 30 years of experience in the collision industry to Spanesi Americas, M i c h a e l ’s e x p e r i e n c e includes working as a Gordon Michael. collision repair technician, a collision repair instructor at a technical college and as a staff member for I-CAR Tech Center. “I’m very pleased to be joining the Spanesi organization,” said Michael. “I am always willing to help out a fellow technician or offer an easier way of doing a repair. I love learning and sharing information about new technology and how it fits into the collision industry. Spanesi is a leader in innovation and technology, and with the complete product line that they offer I’m looking forward to the great things ahead.” Carrossier ProColor has appointed Sylvain Dufault to the position of General Manager. Dufault has many years of experience in the collision repair industry, including several years working for one of the largest insurers in Canada. According Sylvain Dufault. to a statement from Carrossier ProColor, his vast experience with collision centre relationships and his understanding of insurers’ needs will be valuable assets for all franchisees and insurance partners. Dufault will be responsible for the development and management of Carrossier ProColor’s network operations. He will also maintain business relationships w ith the ne tw o r k ’s i n s u r a n c e pa r t n e r s and suppliers. “Without a doubt, Sylvain is the ideal candidate to ensure continuity in the execution of our Michelle Sullivan. business plan and our growth over the coming y e a r s , ” s a id Mi c h e l Charbonneau, VP of Sales and Marketing, PBE Division for UniSelect and responsible for the Carrossier ProColor business unit.
08 COLLISION REPAIR COLLISIONREPAIRMAG.COM
REGIONAL NEWS
BRITISH COLUMBIA
AIA Canada launches BC division The Automotive Industries Association of Canada has created a new provincial division for British Columbia. In fact, the new division has already held its first meeting. It took place in Richmond in April. “All of us in the automotive aftermarket know that our industry is in the process of much change and faces a number of challenges. While AIA Canada and its staff play a large role in how the industry responds to these changes and challenges, it has been shown across the country that the presence of a strong, local division is of huge benefit to our collective efforts,” according to an official statement from AIA Canada. The newly-minted provincial division is currently seeking local volunteers to help identify provincial issues and work with the national office to deliver effective government relations events at the provincial level. An official statement from AIA Canada also notes that grassroots activities at career fairs and local schools have proven to be the most effective way to engage young people in considering a career in the automotive aftermarket industry. Local members also have the opportunity to get together on a more frequent basis to discuss concerns and share ideas on programming, events, training and growth opportunities.
Interested stakeholders are asked to contact one of the five individuals listed below. The initial conversations will aid in developing a plan for ongoing activities in the division.
Ken Morrison ken@lyman-agencies.com 604-435-9098 Mike Rutherford mrutherford@oktire.com 778-228-6602 Al Catton al.catton@ca.bosch.com 250-893-3850 Jason Yurchak jasony@worldpac.com 604-841-1456 Greg Phoenix gphoenix@uapinc.com 778-233-7770
False Creek Collision receives Burnaby environmental award
Bernhard Rubbert of False Creek Collision accepts the award from Derek Corrigan, Mayor of Burnaby.
False Creek Collision has won an environmental award in Business Stewardship from the City of Burnaby. The award is primarily in recognition of the facility’s outstanding efforts to invest in new technologies that reduce electricity consumption and the company’s carbon footprint. Bernhard Rubbert is the owner of False Creek Collision. He says the facility plans even more environmental upgrades. “In fact, we just recently installed a brand new air compressor that is already reducing our energy consumption by a whopping 32 percent,” he said. “We will be making other environmentally friendly upgrades too, like switching out our low energy light bulbs, and investing in new LED lights. In the near future, we even plan to install solar panels on our roof.” The City of Burnaby Environment Committee has congratulated the facility for being leaders in environmental sustainability. A statement from False Creek Collision says the facility plans to continue paving the way for greener business practices, and hopes that other collision repair shops will begin to do the same in the near future. “Eventually, we intend to become the greenest autobody shop in the whole of Canada, and to encourage other businesses worldwide to adopt more eco-friendly alternatives,” says Rubbert. 10 COLLISION REPAIR COLLISIONREPAIRMAG.COM
ALBERTA
REGIONAL NEWS
Fix Auto franchisees, staff bring nationwide support to Alberta wildfire victims The expression is “one good turn deserves another,” and sometimes that’s exactly how it plays out. One Fix Auto franchisee’s generosity and challenge snowballed into over $20,000 in donations to the Red Cross’ Alberta Fires Appeal. “We tip our hats to Fix Auto Okotoks’ owner Morley Barnaby, whose initial donation and challenge to the Fix Auto network snowballed into a wave of support from across Canada,” said Peter Polito, General Manager of Fix Auto Western Canada. “It warms our hearts to see the support pouring in from Quebec, Ontario and the Atlantic provinces to help the Red Cross make a difference in Alberta.” Fix Auto Okotoks issued the challenge to the Fix Auto network in May, when over 80,000 Fort McMurray residents were displaced; within days, Fix Auto owners from all regions of Canada had
contributed over $15,000, with another $5,000 coming in from individual donations from Fix Auto corporate staff and contributions from Fix Auto’s four regional offices. “I would like to recognize Jeff Leeper, Dan Doeber and Ken Bast of Fix Auto Waterloo and Parkway Ford Lincoln, for being the first in Ontario to answer the challenge,” said Daryll O’Keefe, General Manager of Fix Auto Ontario. “Their generous contribution makes a big difference to our collective efforts, and helped build momentum across the network to help the victims of the Alberta fires drive forward with their normal lives.” In total, dozens of Fix Auto franchisees and employees contributed over $20,000 to support the Red Cross in their efforts to help Alberta residents displaced by the fires.
Concours Collision Centres opens South Trail Auto Mall location Concours Collision Centres has opened a fourth location in Calgary, expanding to the South Trail Auto Mall in one of the city’s fastest growing areas. “From the deep north to the deep south, Concours has coverage across the city,” Concours Collision Centres President Ken Friesen said. “We are proud to be part of the new South Trail Auto Mall community.” Located at 14131 McIvor Blvd SE, the new south east facility joins Concours Collision Centres already in the northwest and central Calgary. A statement from Concours Collision Centres says the
new location incorporates Concours’ lean strategies in a 6,800 sq. ft. purpose built facility that is equipped to provide customers with complete collision repair care. “Designed around our lean strategies, this shop is sure to not only meet but exceed our customers’ expectations,” Friesen said. “The most important thing is getting the car fixed right the first time and in a timely fashion.” Concours Collision Centres has been in business for 35 years. With the addition of this new facility, the company expects to repair over 5,000 vehicles a year. For more information, please visit concours.ab.ca.
AUGUST 2016 COLLISION REPAIR 11
REGIONAL NEWS
SASKETCHEWAN
SGI targets work zone safety in July Saskatchewan Government Insurance (SGI) has announced that work zone safety is the current province-wide traffic safety spotlight. Police will be looking for drivers speeding and exhibiting other aggressive driving behaviours in work zones, such as stunting, racing, ignoring construction signage or illegally passing other vehicles. “Road safety is everyone’s responsibility, and drivers need to be extra diligent when there are workers on the road,” said Earl Cameron, Executive Vice President of the Auto Fund for SGI. “Those workers depend on you to slow down, pay attention and respect work zone signage so they can get home safely to their own loved ones at the end of the day.” In 2014, there were 203 collisions in Saskatchewan work zones. One person was killed and 48 others were injured.
SGI recommends drivers keep these tips in mind to ensure all road users are safe while traveling through construction zones: • Slow to 60 km/h in highway work zones or the posted speed limit in municipal work zones. • Follow the directions of work zone signs at all times. • Avoid distractions and be alert for workers, equipment and other hazards. • Plan your route ahead of time to avoid work zones or allow extra travel time. • Posted speed limits are in effect even when workers are not present – there could be a sharp drop-off or rough road surface. • Drive with courtesy and patience for all drivers and workers. Please visit SGI’s website at sgi.sk.ca for more information on work zone safety.
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Fire at Wilf’s Auto Body & Painting in Regina
The fire took place at Wilf ’s Auto Body & Painting, located on St. John St.
Regina Fire & Protective Services responded to a call in June after fire broke out at an autobody facility near St. John St. and Saskatchewan Drive. The fire took place inside Wilf ’s Auto Body & Painting. Local radio station CJME interviewed Omid Azimi, an employee at Wilf ’s Auto Body & Painting, at the scene. According to CJME, Azimi believed the fire may have started on a car inside the facility. “I just run outside and come back in and there’s a big fire,” he said, as reported by CJME. The radio station also reported that Azimi said he ran around the facility to make sure everyone was safely outside and then dialed 911. No injuries were reported as a result of the fire. The cause of the fire is still under investigation, according to a statement from Regina Fire & Protective Services.
Chase Auto Body Supplies hosts hands-on demos at MPI Training Centre
MANITOBA
REGIONAL NEWS
Rondex Equipment Showcase brings needed information to repairers
A demo in progress.
The event featured a number of hands-on demos of body shop equipment, including the latest equipment for small damage repair.
Chase Auto Body Supplies held a collision repair equipment show at the MPI Training Centre in Winnipeg. The show featured hands-on demonstrations of the industry’s latest technology. From cuttingedge equipment in the body shop to new product innovations in the paint and detail department, top industry vendors were on hand to show the latest advancements with their products. Terry Sharanowski, Manitoba Market Manager for Chase Auto Body Supplies, pointed to continuing changes in the industry as the primary driver for the event. “The focus of the show was to bring together body shop owners and technicians with many of the vendors that supply today’s cutting edge equipment and technology. There were well over 100 people in attendance representing about 50 shops,” says Sharanowski. “With all the changes in materials, repair procedures and OEM certification, Chase feels it’s important to equip our customers with the knowledge and tools necessary to not only survive but thrive in today’s marketplace.” For more information, please visit chaseautobodysupplies.com.
Changes to repair procedures demand up-to-date information on the latest equipment and repair procedures. Rondex recently stepped up to help fill this need with an equipment showcase event to update repairers on advances in welding, measuring and innovative tools. The evening event was held at the MPI Training Centre in Winnipeg and drew in repairers and other industry stakeholders. Darrin Jorowski is Regional Sales Director with Rondex. “We recognize that the industry has changed and continues to change,” he says. “That leads to a need for shops to get the right information on how to do repairs properly and with the right equipment. Filling that need was the real focus of the event. That’s part of the reason we had factory experts on-site to help answer any questions that came up during the demonstrations.” The event included updates and equipment demonstrations from AMH Canada, Arslan Automotive demonstrating the Tecna welding line and demos of Spanesi’s Touch 3D measuring systems. Andrew Shepherd of AIA Canada served as a special guest speaker. In part, Shepherd discussed the need for ongoing training. As technology advances, this need becomes even more critical to ensure cars receive safe, high-quality repairs. For more information, please visit rondex.ca.
AUGUST 2016 COLLISION REPAIR 13
REGIONAL NEWS
ONTARIO
CIIA workshop looks at shop financials, top health and safety concerns
CSN-Zenetec Collision Centre to open new location in south Barrie
An artist’s rendering of the new location for CSN-Zenetec Collision Centre in south Barrie. The facility is slated to be fully operational by 2017.
John Norris of CIIA during the evening workshop.
Collision Industry Information Assistance (CIIA) held an evening workshop recently to discuss a number of topics, including updates on apprenticeships, new grants incentives and new technology for the shop. The workshop took place at the Monte Carlo Inn in Vaughan, Ontario. One of the presentations during the event focused on a topic that is almost certainly top of mind for professional repairers: collision centre financials and profitability. The presentation was delivered by representatives of 3M Canada and covered some of the issues that repairers must look for to maintain critical profitability. Also on the slate was a thought-provoking presentation by representatives of Workplace Safety and Prevention Services (WSPS). During the workshop, they dug into 10 things that can go wrong in health and safety. This is a critical area of concern for repairers. In addition to the human factor, a single injury can seriously impact a busy facility’s production schedule. The evening also featured a Q&A session on what CIIA should be working on for its members.The event was sponsored by 3M and Carcone’s Auto Recycling & Wheel Refinishing. For more information, please visit ciia.com.
CSN-Zenetec Collision Centre has announced it will open an additional location in south Barrie, and that the new location will use the Fixline system by Symach. The new facility will be fully automated with Symach’s Fixline conveyor system and six robots. “This is Symach’s first greenfield location in Canada, allowing the best use of the space considering efficiency, quality, volume of production and aesthetic design using their substantial line of equipment,” says Martin Monteith, the facility’s owner. Osvaldo Bergaglio is the President of Symach. He personally designed the layout of the new facility, working with CSNZenetec Collision Centre since last October to make sure everything will flow smoothly. According to a statement from Symach, the automation drastically reduces cycle time and should allow the new facility to produce about 90 repairs a week. Training of the staff should take about four to five weeks after installation of the system is complete, according to Osvaldo Bergaglio, President of Symach. “We have always been at the forefront of the latest technology here at CSN-Zenetec,” says Monteith. “Although this project has a much larger scope, when we decided to open another repair facility we wanted to offer our clients and insurance repair partners something better, something no one else had offered, providing the very finest in service, speed and accuracy. We feel our team and our customers deserve the very best. We have dedicated ourselves to invest more to give more.”
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The 28,000 sq. ft. shop will also include an automatic car wash, with six independent stalls for detailing. The car wash is not part of the Fixline system, but a stand-alone tunnel system from Tommy Car Wash Systems. The car wash is extremely advanced and can handle over 150 cars an hour. While it will no doubt be used for washing repaired vehicles, the new car wash is also expected to serve as an independent profit centre for the facility. Also incorporated in the new shop will be five bays for vehicle wraps, window tinting and glass replacement. The large office area will include a customer lounge with various amenities. “It all comes down to who can repair the vehicle faster while keeping quality and safety paramount, and costs contained by reducing overall cycle time,” says William Monteith, VP of CSN-Zenetec Collision Centre. The new shop is slated to be fully operational by the beginning of 2017.
Assured Automotive Employee of Excellence Jacqueline Piet was named Assured Automotive’s 2016 Employee of Excellence at the company’s annual Spring Fling. In last issue’s story regarding the event, a photo was mistakenly identified as Piet. The photo in question was in fact Cheryl Stavropoulos of Assured Ajax, accepting an award on behalf of the facility for Customer Service Excellence. We regret any confusion this may have caused.
QUEBÉC
Coupe Espoir Canada Carrossier ProColor returns for 2016
Michel Charbonneau, Uni-Select’s Vice-President of Sales and Marketing, PBE Division and responsible for the Carrossier ProColor business unit (left) with some of the scholarship recipients from the 2015 event.
REGIONAL NEWS
The Carrossier ProColor network has announced it will once again serve as a sponsor for the Coupe Espoir Canada Carrossier ProColor, an open water circuit for athletes aged 14 to 21. Carrossier ProColor is presenting the event in association with the directors of the Traversée internationale du lac StJean, lac Mégantic, Lac-à-Jim, the open water provincial championships and the Quebec Swimming Federation (FNQ). This year, a fourth round has been added to the Coupe Espoir Canada Carrossier ProColor. The circuit includes a total of four open water swimming events, a 5 km event in Shawinigan on July 4, a 5 km event in Lac-à-Jim on July 16, a 10 km event in Lac St-Jean on July 29 and a 7 km event in Lac Mégantic on August 12. At the end of the season, the swimmers who have accumulated the most points will share scholarships worth $6,400, with $5,000 offered by Carrossier ProColor and $1,400 offered by the FNQ. To be eligible for these scholarships, an athlete must have earned ranking points in at least three of the four competitions. The scholarships will be awarded in the gala of the Quebec Federation of Swimming (FNQ) to be held September 24, 2016. “It is an honour for Carrossier ProColor to be able to renew its association with these four competitions to present the second edition of the Coupe Espoir Canada,” says Mary Jayn de Villers, Director of Communications and Marketing at Carrossier ProColor. For more information, please visit carrossierprocolor.com.
CARSTAR opens store in St-Félix-de-Valois CARSTAR has announced the opening of CARSTAR St-Félix-deValois. The facility is located at 1520 Chemin Barrette, Route 131 in St-Félix-de-Valois, Quebec. Franchise partners Eric Henault and Jessy Dufresne operate the 4,500 sq. ft. facility. They had previously operated in St-Ambroise, but said they made the move to St-Félix to better serve customers. Henault has over 25 years of experience in the auto repair industry. Both Henault and Dufresne have been involved in their community for a very long time. “We joined CARSTAR, first and foremost, because of the philosophy behind the company. We were attracted by the priority given to service and support available to franchisees, as well as the importance given to customers. For us, customers come first,” said Dufresne. For more information, please visit carstar.ca.
Jessy Dufresne and Eric Henault, franchise partners of CARSTAR St-Félix-de-Valois.
AUGUST 2016 COLLISION REPAIR 15
REGIONAL NEWS
ATLANTIC
Brandon Drover gold medal winner in Autobody Repair The competition at the Moncton Coliseum was fierce, but in the end it was Brandon Drover of Newfoundland who received the gold medal in the post-secondary category for Autobody Repair. Drover is a student at College of the North Atlantic and will now be invited to join Team Canada for the 2017 WorldSkills Competition, taking place in Abu Dhabi. Every year, more than 500 young people from all regions of Canada come to the Skills Canada National Competition (SCNC) to participate in over 40 skilled trade and technology competitions. It isn’t an easy road. Students must compete at local, regional and provincial or territorial events to gain their place at SCNC. Autobody Repair saw 15 students competing this year, across both secondary and post-secondary categories. The showing for Car Painting was almost as strong, with 14 competitors across both categories. Johan Wiebe of Manitoba took the silver medal in post-secondary Autobody Repair. Roeloph Clements won the bronze. In the secondary category for Autobody Repair, Alex Fortier of Quebec took the gold, while Kevin Messerschmidt of Manitoba and Braedon Thiffeault of British Columbia went home with the silver and bronze, respectively. Fortier will also be invited to join Team Canada for WorldSkills 2017.
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Winners in the post-secondary category for Autobody Repair at the 2016 Skills Canada National Competition. Brandon Drover (centre) took the gold, with Johan Wiebe (right) earning the silver and Roeloph Clements taking home the bronze.
Turning to Car Painting, Ashley Weber of Manitoba took the gold medal in the post-secondary competition, followed by Brodie Gibson of Ontario with the silver and Gheorghe Apopei of New Brunswick winning the bronze. Dave Mercier of Quebec headed up the secondary competitors in Car Painting. Conrad Proszowski of Ontario and Julian Walsh of British Columbia took the silver and bronze medals, respectively. SCNC 2017 will take place at the RBC Convention Centre in Winnipeg, Manitoba, from May 31 to June 3. For more information, please visit skillscompetencescanada.com.
ATLANTIC
REGIONAL NEWS
CSN – Dana’s raises funds with 2nd annual Racing with Autism event
Nathan Goncalves (left) presents this year’s donation cheque to Austin Riley and his father, Jason Riley.
You can always count on members of the collision repair industry to step up and help out when needed in the community. Recently, CSN–Dana’s Collision Center was proud to support autism awareness by sponsoring the 2nd Annual Racing with Autism event at East Coast Karting, in Moncton, New Brunswick. The money raised helps support both autism awareness and kart racer Austin Riley. Riley, who is autistic himself, is also a threetime karting champion and a rising star in Canadian motorsports. The event, held Father’s Day weekend, started off with a celebrity race Friday night as a fundraiser for autism awareness. Saturday was another day of racing for drivers to qualify for the CSN–Dana’s Collision Center sponsored Atlantic Championship event held Sunday at East Coast Karting. Racers of various age groups competed in different divisions over the weekend. Stakes are high and everyone races to win. However, the drivers and teams also form a strong community that will always help each other in the event that something breaks, or if they just need a hand or advice in preparing their
carts. It’s a widespread attitude that results in a real family atmosphere around the track. Leading up to the Championship weekend, the drivers and their families sold puzzle pieces to raise funds. Including other events, a total of $4,100 was raised for Racing with Autism. “Upon our arrival on Saturday I noticed every kart in every class had puzzle piece stickers on it. It seems for many weeks previous all of the competitors were selling these stickers to help raise money for Racing with Autism ... I was left speechless,” said Jason Riley, Austin’s father. This is the second year that Austin and his family have been at the Moncton facility. Last year, 12-year-old Nathan Goncalves, who is also autistic, came to see Austin race and was very inspired. This year Nathan came again to watch the races, and was very proud to present the cheque on behalf of East Coast Karting for $4,102 to Austin and his father. Money raised this year will help Austin race in the Autism Awareness Tour of Australia. For more information about Austin, check out his Facebook page, Racing with Autism. For more information on CSN–Dana’s Collision Centre, please visit csninc.ca.
AUGUST 2016 COLLISION REPAIR 17
NEWS
Report: Global collision repair market expected to hit $196 billion by 2020
AIA Canada significantly increased ‘Strategic Partnerships’ in 2015
Global automotive collision repair market size is expected to grow to $196 billion USD by 2020, according to a new report by Hexa Research. This is a compound annual growth rate (CAGR) of over 2 percent from 2014 to 2020. Aging fleets and an increasing number of vehicles are the major factors estimated to have a positive impact on the global collision repair market. Part of the expected growth will likely come from increases in repairs to commercial vehicles. Repair costs for heavy trucks and busses are extremely high compared to most passenger vehicles. The report from Hexa Research indicates an increase in both intercity and intra-city transportation globally for both goods and passengers, leading to an increase in total dollar volume of repairs in this sector. The report takes into account the growing implementation of driver assistance systems, including forward collision warnings, and forecasts that the continued proliferation of these systems will impact overall global growth of the industry. Globally, light-duty vehicle repairs were valued at over $118 billion USD in 2013. This segment is forecast to exceed $140 billion USD globally by 2020. North America is expected to grow at a CAGR of over 2 percent from 2014 to 2020. The Hexa Research report anticipates growth in North America at a CAGR of over 1.5 percent from 2014 to 2020. Much of the growth can be attributed to erratic weather conditions, according to Hexa Research.
AIA Canada has released its annual report for 2015. The report leads off with a message from Jean-Francois Champagne, President of AIA Canada. Champagne provides a brief overview of AIA programs, including training delivery through I-CAR and steps the organization is taking to address key labour shortages. The annual report then digs into AIA Canada’s numbers, including a financial snapshot of the association. Total revenue for 2015 was $6,174,940. This is a significant rise from 2014, when total revenue was $5,027,886. At least some of this increase in revenue came under the heading of “Strategic Partnerships.” Revenue under this category rose to $54,738 in 2015, an enormous increase compared to the $1,103 brought in under this heading in 2014. Information on new projects undertaken in 2015 is also provided, including updates on Advancing Women in Automotive Knowledge Exchange (AWAKE), Georgian College’s Aftermarket Business Lounge and AIA’s online job board. The report also includes information on AIA Canada’s events in 2015, market research undertaken and awards given out to AIA volunteers who went above and beyond in 2015.
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FEATURES
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NEWS
Providence Equity takes majority stake in OEConnection By Jeff Sanford
OEConnection has announced a deal that sees Providence Equity Partners acquiring a majority equity stake in the company. According to the terms of the deal, Providence Equity will take a 50 percent stake in OEConnection; two of the founding investors, Ford and GM, will reduce their stakes to 15 percent each. The dollar cost of the deal for the privately-owned company was not released. “We’re not sharing what the value of the deal is,” said Geo Money, Manager of Branding and Culture at OEConnection in an interview with Collision Repair magazine. “But I can say that the whole intent here is to bring in an investor that is very focused on the auto industry and technology as a way to help us accelerate our growth. We needed someone that could bring in that technical side.” Providence Equity is a leading global private equity firm with $45 billion in assets under management and 250 employees. The company began in Rhode Island, far from Manhattan, where many private equity firms are based. Through the 1990s and the early 2000s the fund emerged as a major player in this unique and rarified area of modern capital markets. Private equity firms are considered the most sophisticated of investment funds. Whereas a pension or mutual fund typically buys up passive stakes in publicly traded stock of a company to generate returns, private equity funds are much more active. Private equity funds use borrowed money to take majority stakes in a company. The private equity fund then attempts to rejig the business of the company to make it more profitable. The private equity fund might bring in management expertise, or work on strategy. They can shake up management, move manufacturing to a more profitable region, or bring in new technology, ideas and capital. After a period of time—a typical private equity investment is held for five years—the reformatted and more valuable company is sold back into the market, hopefully for a profit. Early reports on the ProvidenceOEConnection deal suggest no immediate management changes are in the works. According to Money, management at OEConnection is looking forward to opportunities Providence can provide. “They have a large global footprint. What that is going to allow us to do is to ride on their coattails and expand nationally, and even internationally. They’ve been involved with major companies like Cox Enterprises. They’ll help us break into those markets from a technical standpoint,” says Money.
Some have speculated that the reduction in the stakes held by Ford and GM will see OEConnection approach other OEMs and bring those companies into the OEConnection fold. Providence has a stake in autotrader.com, but it is the technology firms affiliated with Providence that are key to the deal, said Money. “They can partner us with other companies and they can introduce us to
technologies that we may not be aware of,” he said. “GM and Ford are not leaving. They’ll both retain 15 percent. What this does is that it maintains our strength. We’ve created a really strong foundation for growing and expanding the business over the years ahead.” The deal is subject to regulatory approval. It is expected to close by the end of the second quarter of 2016.
AUGUST 2016 COLLISION REPAIR 21
NEWS
CSN raises funds for Make-A-Wish at annual golf tournament CSN Collision Centres held its 10th Annual Golf Tournament recently at Piper’s Heath Golf Club in Milton, Ontario. All proceeds from the tournament go to Make-A-WishCanada , the company’s charity of choice. By the end of the day, CSN Collision Centres was able to present the Make-A-Wish Foundation with a cheque for $10,000. The purpose of the organization is to grant the wishes of children with serious medical conditions. Numerous industry stakeholders from the collision, supplier and insurance sectors lent their support to the tournament, with many of them hitting the links to help out. The tournament itself was followed by cocktails and dinner, with a number of prizes given out in various categories.
Ready to hit the links!
CSN Collision Centres would like to thank the generous sponsors who helped make the tournament possible: -
AkzoNobel BASF PPG 3M Color Compass LKQ Uni-Select Audatex Guelph Paint & Bumper
- OK&D Marketing - Caruk & Associates - Discount Car & Truck Rental - ART - Lord - Flatline - Carcone’s Auto Recycling
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Wurth Norton Symach Enterprise Thorold Auto Parts Titanium Tools and Equipment - Micazen - Autohouse Technologies
- Please Hold Canada - MARS - Michael Walker Advertising - Progi - CDC-APC - Mitchell - Treschak Enterprises - Brown’s Auto Supply
NEWS
DAIHATSU OPENS THE ERA OF MASS CUSTOMIZATION Automotive customization through 3D printing has been predicted for a while now, but Daihatsu may be the first automakers to deliver on that prediction. The company has been collaborating with 3D printing firm Stratasys to bring mass customization to market. In the last three years, 3D printing has expanded from prototyping to factory tooling to short run production, with the expectation that it would be used also for mass customization of consumer products. Based in Ikeda, Osaka, Japan, Daihatsu partnered with 3D printing solutions company Stratasys, Kota Nezu from industrial design company Znug Design and 3D creator Sun Junjie to turn the vision into reality. Designers created 15 “Effect Skins,” intricate geometric and organic patterns in 10 different colours that are 3D printed using Stratasys Fortus 3D printers. Customers can adjust the parameters of the designs themselves, exponentially increasing the numbers of options and allowing “one-off ” customization for each consumer. The skins may be ordered for front and rear bumpers and fenders. They are 3D printed on Fortus Production 3D Printers from Stratasys using ASA thermoplastic which is very durable, UV resistant and aesthetic. “What would have taken two to three months to develop can now be produced in two weeks,” says Osamu Fujishita, General Manager, Corporate Planning Department, Brand DNA Office, Daihatsu Motor. The traditional manufacturing method of reducing costs is mass production of identical parts to take advantage of economies of scale. But this Effect Skins project illustrates the power of 3D printing when it comes to creating on-demand product parts with high customizability and rich design properties. The Effect Skin project is being tested in 2016 in select markets with plans for commercialization in early 2017.
Copen owners will be able to customize the Effect Skin design by changing parameters for truly one-of-a kind patterns and textures.
There are 10 colours and 15 base patterns available, which can be further customized. AUGUST 2016 COLLISION REPAIR 23
NEWS
Prochilo's diagnostic symposium highlights the importance of scanning By Mike Davey
Dan Dominato of Precision Marketing and Jake Rodenroth of Collision Diagnostic Services demonstrated the AsTech scanner.
Vehicle scanning has received a lot of attention lately. Increasing vehicle complexity means that the best practice is to run both pre- and post-repair scans. This ensures that all of the vehicle’s issues are addressed and all systems are functioning properly. In turn, this can help to safeguard repairers against liability. Scanning and associated technology were the main topics at the recent Collision Diagnostic and Technology Symposium, hosted by Prochilo Collision Group at one of its facilities in Toronto. The event was attended by vendors, insurers, representatives of OEMs and other members of the value chain. The featured speaker was Jake Rodenroth,
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Director of Client Services for Collision Diagnostic Services (CDS). CDS is the company behind the AsTech remote diagnostic tool. Essentially, the AsTech is a scanning tool that allows a collision facility to run diagnostics using OEM factory scanners without having to purchase one for every brand. Instead, the AsTech scans the vehicle and uploads the information to the cloud. From there, it is fed into the appropriate OEM factory scan tool by CDS. According to CDS, this provides the most accurate possible results and covers most of the popular makes and models. The unit can identify issues within the vehicle’s internal sensor systems that may be difficult or impossible to identify with a visual inspection. The AsTech also provides documentation of every scan performed. Demonstrations of the system were conducted by Rodenroth and Dan Dominato of Precision Marketing. They conducted the demonstration on three vehicles: a 2017 Lexus RX350 F Sport, a 2016 Toyota Camry and a 2014 BMW 3 Series. During the demonstration, Rodenroth hooked up the system to each vehicle and the scans were automatically
uploaded to the CDS head office. Results were returned in about 20 to 30 minutes. Domenic Ieraci heads up Sales/ Marketing and Communication for Prochilo Collision Group. He outlined the goals of the Symposium in a recent interview with Collision Repair magazine. “Our overall goals were to add value, educate our stakeholders, leverage technology to enhance performance, reduce costs and create a better and safer repair experience for our customers,” he said. The AsTech scanner shows fault codes, but it also indicates where and how the fault originated. This can be vital for a collision repair facility. “It shows whether the fault is accident related or non-accident related,” said Ieraci. “That really helps to determine what we as repairers are responsible for and what our insurance partners will pay to repair. It’s a way to do a better, more thorough repair, while at the same time contain costs and protect the business from liability.” For more info on Prochilo Collision, please visit prochilobrothers.com. For more information on CDS and the AsTech scanner, please visit astech.com.
NEWS
CARSTAR raises funds for Cystic Fibrosis at annual golf tournament Early summer is a great time to hit the links, and it’s even better when you can do it for a good cause. The 23rd annual CARSTAR Charity Golf Classic took place at Glendale Golf & Country Club in Hamilton, bringing together CARSTAR franchise partners, insurance and vendor partners as well as
CARSTAR corporate staff and executives. The tournament raised $20,650 for CARSTAR’s national charity of choice, Cystic Fibrosis Canada. With these latest donations added to the total, CARSTAR has now raised nearly $3 million for CF Canada over years of committed fundraising.
Presenting the latest donation to Cystic Fibrosis Canada. From left: Michael Macaluso, President of CARSTAR North America, Christine Martysiewicz of Cystic Fibrosis Canada, Madison and McKayla, and Sam Mercanti and Colson Cole of CARSTAR. Madison (15) and McKayla (13) are sisters who were diagnosed with CF at birth. They have spoken at the CARSTAR golf tournaments for the last several years and inspired attendees with their resilience and courage.
CARSTAR would like to thank the following sponsors who helped make the tournament possible: PLATINUM SPONSORS GOLD / DINNER SPONSORS 3M Enterprise Rent-a-Car AkzoNobel LKQ Axalta NAPA-CMAX BASF RBC Insurance Discount Car and Truck Rentals Mitchell SILVER / WINE SPONSORS GOLD / LUNCH SPONSORS Color Compass Corporation Color Compass Norton Saint-Gobain Saint Gobain Abrasives Carborundum Thorold Auto Parts Thorold Auto Parts & Recycling
IIHS Report: Vehicles with good driver-side protection may not offer the same to passengers A new study from the US-based Insurance Institute from Highway Safety (IIHS) shows that drivers of vehicles with good small overlap front ratings can expect to be protected well in a frontal crash involving the left corner of the vehicle, but good protection doesn’t always extend across the front seat. The Institute conducted 40 mph passenger-side small overlap tests on seven small SUVs with good driverside small overlap ratings. Only one of the vehicles, the 2016 Hyundai Tucson, performed at a level corresponding to a good rating. The others ran the gamut from poor to acceptable. The results have prompted IIHS to consider instituting a passenger-side rating as part of its TOP SAFETY PICK criteria. “This is an important aspect of occupant protection that needs more attention,” says
Becky Mueller, an IIHS Senior Research Engineer and the lead author of the study. “More than 1,600 right-front passengers died in frontal crashes in 2014.” IIHS introduced the small overlap test in 2012, following the success of the moderate overlap front test in spurring automakers to make improvements. While the moderate overlap test involves 40 percent of the width of the vehicle, the small overlap test involves just 25 percent. It is designed to replicate what happens when the front corner of a vehicle collides with another vehicle or object. Small overlap crashes pose a challenge because they bypass a typical vehicle’s main front structure. Since the test was introduced, 13 manufacturers have made structural changes to 97 vehicles. Of these, nearly three-quarters earned a good rating after the changes.
Is your vehicle safety compromised by corrosion? Most of us believe our vehicles are safe. But have you taken a peek underneath your car lately? Chances are, if you have kept your car for over 4 years the first signs of deterioration have already begun to appear in the form of corrosion - unless of course you’ve taken preventive measures by rust protecting your car annually. Without proper protection against rust, a vehicle’s metal body can begin to corrode after just a few years, making new cars susceptible as well. After years of exposure to our harsh weather conditions and road salt, rust usually starts to appear in weaker areas of our cars such as spot welds, door dings, scratches and rock chips. If left unchecked, rust can spread and also harm the mechanical parts that are essential to the safe running of the vehicle such as the gas tank, electrical connections and brake lines. “Corrosion should not be taken lightly as it directly affects the overall safety of your vehicle,” explained Freeman Young, president of Krown Rust Control. “As soon as your car starts getting rusty, the overall integrity of the vehicle is compromised. Treating your vehicle with a rust control product every year actually makes the frame stronger and protects the moving parts. The fact is rust protection equals safety.” Rust inhibitors also act as lubricants and will protect the internal parts of your car, such as wiring, which is often prone to oxidation and electric shorts. While protecting yourself and your loved ones should be your main concern, there are also products available that have a lower environmental impact. Make sure you choose a product that does not contain any solvents, VOCs or toxins.
“30 Years in Business” For more information visit www.krown.com
AUGUST 2016 COLLISION REPAIR 25
NEWS
CSN-CARS COLLISION HOSTS LAUNCH PARTY FOR FIXLINE SYSTEM
By Mike Davey
CSN-CARS Collision in Burlington, Ontario officially unveiled its Fixline system from Symach at a launch part held in the facility’s production area. Stakeholders attending the event included local repairers, CSN executives and franchisees, insurers, vendors, suppliers and members of the local business community. Fixline isn’t a product, but a process, one that revamps collision repair from start to finish. The system is in use in facilities around the world. The CSN-CARS Collision is the first in Canada. Nick DiLuca, owner of CSNCARS Collision, took Collision Repair magazine on a tour of the system earlier this year when the installation was completed. The launch party actually offered attendees a chance to see the system in action. DiLuca gave a short presentation on the benefits of the Fixline system and introduced a practical demonstration of the system’s speed. A vehicle was rolled into the booth and then basecoated and clearcoated. Before the launch party was over, the vehicle had finished curing. For more information on CSN-CARS Collision, please visit carsautocollision.ca.
Michael Carcone of Carcone’s Auto Recycling and Joe Da Cunha of Allstate.
Keith Hudd, formerly of Economical, and Flavio Battilana of CSN Collision Centres.
Nick DiLuca of CSNCARS Collision provided a brief overview of the Fixline process.
GLOBAL AUTO PRODUCTION CONTINUED
TO INCREASE IN FIRST HALF OF 2016 The automotive industry is still doing a bang-up business from the global perspective. Worldwide car sales posted another solid advance, climbing 4 percent over the same period in 2016 and continuing the string of strong gains since last September. Western Europe and China led the way, with both regions posting double-digit advances in May, but North America is apparently poised to lead the way throughout the summer. While the economic and sales outlook has become more uncertain in the aftermath of the UK referendum, volumes across Western Europe have advanced a stronger than expected 9 percent. The improvement reflects increased replacement demand and a strengthening labour market, which will continue to buoy sales even as activity begins to falter in the UK. “Rising sales will lift vehicle production across most of the world in the second half of 2016, providing a welcome boost
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to industrial activity,” says Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank. “This comes at a time when heightened economic and political uncertainty is dampening overall economic growth.” North America assemblies in the JulySeptember period are scheduled to post the largest quarter-to-quarter increase in more than two years. However, assemblies are also moving higher across Asia and Europe, supporting manufacturing activity which has staggered into the summer. While North American vehicle production and overall industrial activity has been sluggish in recent months, factory floors are expected to become busier during the summer, with a record number of vehicles scheduled to be built during the July-September period. Estimates from Scotiabank predict the annualized production rate in Canada, the United States and Mexico will climb to 18.9 million units during the summer, up from 17.9 million between January and May.
NEWS
AIA CANADA REPORT OUTLINES CHALLENGES FOR WOMEN IN AUTOMOTIVE TRADES AIA Canada has released a new assessment report outlining the current landscape for women working in the automotive trades. The report, Advancing Women in Automotive Knowledge Exchange Needs Assessment, also provides recommendations for increasing the number of women currently working in the trade. The assessment report is based on the results of nation-wide focus groups of women employed in the automotive aftermarket industry and supplemented by an online survey of human resources insiders. “A considerable body of research has provided an extensive amount of data supporting the business case for companies to diversify their workforce,” says France Daviault, Senior Director of Industry Relations for AIA Canada. “This needs assessment report offers a glimpse into where we are as an industry and provides a roadmap to improving the industries’ labour outlook by addressing the low representation of women in the automotive aftermarket.” The Conference Board of Canada predicts that one million skilled workers will be needed by 2020. Although many jobs will go unfilled due to the lack of skilled workers, women remain significantly underrepresented in multiple sectors, including the automotive aftermarket. The needs assessment report makes four key recommendations for employers, the industry and government. The
Did you know that when you are spraying a catalyzed paint product in a spray booth or prep deck, the proper personal protection equipment is an air-supplied respirator? Air supplied respirators must be supplied with Grade “D” Breathable Air.
The Advancing Women in Automotive Knowledge Exchange Needs Assessment report is available from AIA Canada’s website.
Quality Air Breathing Systems are designed to provide Grade “D” Breathable Air from your existing compressed air system, for compliance with current CSA Standards when using an air supplied respirator. Systems sized from one person to twelve persons at the same time. We offer complete systems, with proper filtration and carbon monoxide monitors, panel mounted, and ready to use. Available in belt mounted, wall mount, and portable versions.
recommendations include developing more inclusive workplace cultures; implementing pro-active support measure for women employees; investing in measures to enhance public awareness of employment opportunities for women; and, continued support for training and incentive programs as well as communications programs to raise awareness and interest in the industry among women.
Key Findings Women’s perception of their acceptance within the industry: Even with some participants possessing over 20 years of experience in the industry, focus group participants acknowledged the significant challenges associated with being “one of few” within a workplace and having to “work twice as hard as their men counterparts.” The impact of workplace culture: In discussions surrounding workplace culture and its impact on their experiences, women identified instances of gender stereotyping and harassment as typical. Public perception of industry opportunities for women: The majority of participants advised that although they had an interest in the trades they had never contemplated the industry as a possibility because it was perceived as “male-dominated.” Industry support for women’s advancement: Participants’ general perception was that, compared to their male colleagues, women experienced
more barriers to advancement than men. Resources for women in the sector: The value of resources designed to facilitate women’s involvement in the industry resonated throughout all focus groups. Participants unpacked three key priorities: mentorship, training and development and networking. The needs assessment report is the first phase of the Advancing Women in Automotive Knowledge Exchange project. With the collaboration of key industry partners, an action plan will be developed based on report recommendations. The action plan will include the development of an online portal to support networking and knowledge sharing, the development of employer tool kits to assist with the recruitment of women in the sector and the development of an inclusive work environment, and the sharing of best practices as it relates to promoting gender balance at various levels of the industry. A free copy of the report is available at aiacanada.com. AUGUST 2016 COLLISION REPAIR 27
WHO’SFEATURES DRIVING?
BADBOSSES Evidence says it’s the number one reason employees quit.
By Jay Perry
D
evelop your employees or lose them. It’s a bold statement that ends up being statistically true. In research on the subject of why people leave their employers, a Deloitte paper published this year states that after interviewing over 7,000 employees, it was found that the number one reason for them to leave their job was “Insufficient opportunities to develop their leadership skills.” This research backs up what was found in a 2014 study by Quantum Workplace. That study looked at findings from surveys of more than 400,000 employees about what was important to them. The
make up part of your workforce today and will be an even larger part tomorrow. It is very rare that people will actually leave the profession or trade they chose when they quit a job. They stay in the same industry or business, but most of them go onto a competitive firm and do the same job for the new company. This is important because we can lose sight of that truth and miss opportunities that could help us retain talent and operational efficiencies if we are proactive and start to address the problem. I know this challenge to business is not simple and there are many aspects to it. Here is the low-
THE MAJORITY OF PEOPLE HAND IN THEIR NOTICE BECAUSE THEY DON’T HAVE FAITH IN THEIR BOSS. conclusion was that professional growth and career development came in at number one. The authors of the report observed: “If young employees aren’t having their needs for professional development met, they will seek other opportunities.” A Gallup poll of more than 1 million employed US workers concluded that the number one reason people quit their jobs is a bad boss or immediate supervisor. B enchmark R e cr uit sur ve ye d over 3,000 employees and found that over 22 percent left their last job due to lack of faith in the leadership team. According to this consultancy “rather than quitting over low pay, the majority of people hand in their notice because they don’t have faith in their boss, feel unappreciated and are disengaged in their work.” Taken together, these studies are overwhelming evidence that bosses overall are doing a poor job and actually making it more expensive for their companies through lost employee retention. As re p or t e d l a s t Ju n e by C an a d i an B u s i n e s s , millennials are now the largest sector of the workforce. It makes the point even more poignant when we see that the vast majority of them will walk if not satisfied in their post. These millennials
hanging fruit: If the number one reason is bad bosses (people quit bosses, not jobs) then it is time to build a better boss. Being a leader in a a small-to-medium sized enterprise is a big job. Most of the skill set required hasn’t been taught in a formal way, but picked up from others. That is why mentoring is so important. This is where those skills are modelled and the mentoree learns. But times are changing and we need to change with them. There are courses now available for helping to create understanding of leadership skills and techniques. Whether you want to investigate the one my company offers or research what else is available, the time has come to really dig into this challenge. Provide opportunities for your people from both the perspective of growth and of personal development, and you will make sure you stay the one who’s driving! CRM
Jay Perry is co-author of the book “Success Manifesto” with Brian Tracy, and the founder of Ally Business Coaching, a process improvement and leadership development firm. He can be reached at jayperry@a-b-c-inc.com.
AUGUST 2016 COLLISION REPAIR 29
PRAIRIE VIEW
CULTUREMATTERS It impacts literally every facet of the business. By Chelsea Stebner
E
veryone has culture in their business. Whether good, bad or ugly, it’s there. Some businesses invest in their culture, others ignore their culture and lots simply don’t understand it or how to make change to it. As leaders, the first order of business is to follow what we preach. Easy to say but not always easy to do. Simply doing what we say we’re going to do, practicing our values and morals instills culture in our team. It sets the tone for how the entire business runs. Employee culture is an entire living, breathing being. It is a code. It is an attitude. When you get great employee culture it is an amazing thing. It feels good. It makes you want to be at work. You have a team of people that are invested in each other’s lives
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both personally and professionally. You have people that have each other’s backs. They care about one another. They lift each other up and they hold each other accountable. In that great employee culture there are still challenges. How hard is it for that new employee to come in, break into that culture and be a part of it? When we hire someone new, we always semi-jokingly tell them that they can be voted off the island. In other words, if you don’t fit, you’re gone. We always tell the new hire that they must earn the trust and respect of t he i r te am m ate s . Te am m ate s hol d e a ch other accountable. How do ensure that you’re hiring the right person for the right seat on the bus? People have certainly been voted off our island.
PRAIRIE VIEW
We’ve been challenged in our administrative department over the last several months. We have a small tight-knit group of smart, strong, confident women who have ver y high expectations of themselves and their team. Throw a newbie into the mix and watch that culture have a good shake-up. Even with excellent training, great job descriptions
the mix. Women bring the soft side, the nurturing side, the passionate side to our businesses. We bring heart. Our next move is to revisit our team dynamic, involve our team in the interview process as that will give them a vested interest, and maybe utilize a recruitment agency or a personality profiling tool.
EMPLOYEE CULTURE IS AN ENTIRE LIVING, BREATHING BEING. and instructions, along with years of experience from the administrative team, we are struggling to find the right fit. A respected Saskatoon businessman once told us, a couple of women are okay in the mix, more than that it turns into a nightmare. Fast forward to 2016 where we have loads more women in our industry and we are still finding that a challenge. As a matter of fact, I had the opportunity to sit on a panel at CCIF last September speaking on gender balance and why it’s important to have women in
In all seriousness, guard your culture, protect it, nurture it and build on it. That great culture is a key to a lean, efficient team that’s willing to do whatever it takes to make a difference in your business. CRM Chelsea Stebner is a co-owner/operator of Parr Auto Body, a collision repair facility located in Saskatoon, Saskatchewan. She can be reached at chelsea@ parrautobody.com.
Being certified sets you apart.
www.collegeoftrades.ca
1.855.299.0028
@collegeoftrades
AUGUST 2016 COLLISION REPAIR 31
TRAINING
CANADIANMADE Discussing the upcoming AIA accreditation program. By Andrew Shepherd
F
or 30 years Canadians have led the world in collision repair innovation. We launched franchise-based MSOs which have become global front-runners. We implemented provincial insurance programs with first-rank collision research and development capabilities. We changed the Canadian Collision Industry Forum (CCIF) from a looselyorganized industry gathering into a collaborative engine which brings together, unlike anywhere else on the planet, insurers, OEMs, suppliers and educators. Through that consensus we have produced an insurer-repairer agreement on First Notice of Loss templates which is a unique prototype for the future.
geography, language and history. They do not recognize a vastly different industry structure. They ignore the phenomenal success we’ve had in building CCIF as a world-leading industry consensus builder. And most importantly, they leave the control of future rules, future guidelines, future requirements and future fees in American hands. The Canadian Collision Industry Accreditation Program (CCIAP), set to launch in fall 2016, puts the critical control of standards and recognition in Canadian hands. The program establishes a core shop standard for equipment, training, procedures and general business requirements. This standard matches those developed by the vast majority of
IT’S TIME TO BRING THE SAME CANADIAN ENERGY TO COLLISION SHOP ACCREDITATION. We have tailored an international collision repair training program to Canadian needs, generating innovative solutions which are admired and emulated world-wide. It’s time to bring the same Canadian energy to collision shop accreditation. Let us be clear that the emergence of shop accreditation is inevitable. The increasing complexity of vehicle repair, with the requisite training and equipment advances, demand that all partners have evidence of shop capabilities. Insurers need to protect their customers against poor quality, and even lifet h r e a t e n i n g , r e p a i r d e f i c i e n c i e s . Ve h i c l e manufacturers need to assure their customers that innovative designs can be fixed in the event of an accident, and that post-repair vehicles continue to deserve brand loyalty. For repairers themselves, demonstrating a capability for safe and effective repairs is the only sure path to growth and profit. So shop accreditation is here to stay. The next question is critical. Do we want to be in control of our “shop accreditation destiny”? We are currently being offered several shop accreditation options from the US. These have been developed for the American collision repair industry. They take no account of Canadian realities, including 32 COLLISION REPAIR COLLISIONREPAIRMAG.COM
Canadian OEMs. It audits Canadian repair facilities against these items as well as any unique standards from participating OEMs. CCIAP is run by the Canadian industry, delivered by AIA Canada and oversight is provided by Canadian industry stakeholders with direct input from OEMs, insurers and all CCIF stakeholders. It will synchronize with provincial accreditation systems and will serve equally in both official l a n g u a g e s . C C IA P m e e t s C a n a d i a n O E M requirements and will be updated to continue to meet those requires. Last but not least, CCIAP is affordable. as a not-for-profit association AIA Canada must deliver the program at cost-recovery fee levels, rather than generating profits. No doubt many accreditation programs can and will run in Canada, but it is critical that one of these b e C ana d i an - l e d. O n ly t he n c an ou r shop accreditation destiny remain in our hands. CRM
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
PROFILES OF SUCCESS
REPAIR
CHAMPION Dave Miller of Fix Auto has found success both on and off the water. Miller on the water at a recent tournament in West Palm Beach, Florida. Miller is currently ranked number two in the world for slalom skiing in the 35 years and older category.
D
ave Miller knows how to keep himself busy. The owner of a smartly growing chain of eight Fix Auto collision shops, he’s accomplished far more than most in his life. Not only has he created a major sophisticated multi-store operation across southern British Columbia and Alberta, but he continues to maintain a parallel career as one of the world’s leading competitive water skiers, and is about to release a new ski he helped develop with equipment-maker GOODE company. It’s a fascinating life. Success only arrived after some serious hard work. His story is a classic industry one. He learned the trade from his grandfather. As a kid he hung around a shop, cleaning it up. He began working at age sixteen. As a young painter he gathered a local following who recognized his talent. He developed a solid reputation and opened his first shop in a chicken coop in a backyard, doing work for a small group of “friends and family.” He went on to work at different shops and gathered the experiences that would allow him to flourish as a multi-store operator. Working under a good custom painter, he learned the craft and technique. Being disciplined, focused and talented, he built up a reputation as a standout in the local area. “I leaned how to do these things really
well,” says Miller today. “I realized I had a following. Wherever I went to work, they flowed to me. I had that mentality everywhere I worked.” Eventually he teamed up with a business partner and invested in a small shop on the west side of Abbotsford. It opened in 1987. “That’s where we started. We began growing from there,” says Miller. He talked the partner into buying another property. They built a 46,000 sq. ft. shop. Those first
two shops in Abbotsford would be the base for an expansion. “From that day on it just kept on getting busier and busier,” says Miller. He bought his partner out and kept expanding. “By that time we were doing three million in sales. We were fifteen years in. I realized this shop is paid for now. I’ve got a good team under me.” Over the years, the organization expanded to a whole other level. Today,
Dave Miller at Fix Auto Abbotsford East, one of eight Fix Auto stores in the Miller Group.
AUGUST 2016 COLLISION REPAIR 35
PROFILES OF SUCCESS
Miller chats with Customer Service Representative Vanessa Goor. A large multi-store operation requires outstanding staff at all levels.
there are eight Fix Auto stores in the Miller Group. His first two shops were in Abbotsford. Those locations are still in operation, and have since been joined with operations in Vernon, Chilliwack, the Fraser Valley and Salmon Arm, BC. There’s a shop in Airdrie, Alberta, and another on the way in Calgary. “We want to find the best possible location for the Calgary store. We’re still examining all of our options,” says Miller. Today the company does over $20 million in business a year. A recent group meeting with another local company could see him get involved with the conversion of
for taking a business to this level—hire the right people into the right places. Like a lot of people who are passionate about the business of collision repair, Miller learned how to do every single job in the shop. As he expanded his operation the one thing he always made sure he did was hire people better than him in all the positions he’s filled. “I started out doing everything, working in the shop. The office. I’ve done it all. And I’ve tried to fill every position with someone better than me. That’s the philosophy,” says Miller. It’s a philosophy that has paid off for
skiing competitions. Those of us in Canada’s collision repair industry know Miller as the operator of a large MSO. He has a good reputation in the industry, but his profile and reputation in the world of competitive water skiiing may be even higher. Miller is, of course, defending World Masters Water Ski Champion. In his 22-year career in water skiing Miller has earned two international top placings, two Canadian championship titles, multiple first place finishes in Western Canadian/USA competitions, and numerous provincial titles in Mens’
Today, there are eight Fix Auto stores in the Miller “ Group. His first two shops were in Abbotsford. ” ten brand new repair shops. “We’re doing great. There are always some stragglers among the stores. But I’m seeing that the upside is better than ever,” he says. Today he still calls Abbotsford home, after more than 40 years. He has two grown children with his wife Jackie. One of the most important bits of advice Miller has
Miller and his team. Today he has people in his organization that have been there for decades. There is trust and loyalty, which allows things to get done. Everything is centralized at the head office. With the right people in place he is able to spend five or six months a year on his other passion: travelling to and participating in water
36 COLLISION REPAIR COLLISIONREPAIRMAG.COM
III Slalom. Miller’s top international finish was at the World Seniors in France in 2004 where he placed third. That same year Miller took home a sixth place finish at the Pan American Games in Peru. In his home town, he took on the role of chairman for the transformation of Albert Dyck Park into one of the top sites for
PROFILES OF SUCCESS
water ski competition in Canada and the Pacific Northwest. He founded The Fraser Valley Water Ski Club, which is considered a provincial icon for competitive water skiing. He also has a spot on a lake in California where he trains for the ski competitions. “We’re all over the world. I’m not the young one anymore. But I’m still doing it. We ski at our place in California and then on a lake here,” says Miller. Most recently he teamed up with a company that manufactures water skis to develop the Rev6. That ski has just been released. It’s a good life. “From travelling I have friends all over the world. I can go anywhere, France, Spain, Chile and I know someone who has a private lake and can really ski,” he says. “It’s nice.” The Miller Group gives back to the communities it serves. Shown here are 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.
Dave Miller in the centre of Fix Auto Abbotsford East. The facility was one of the first in the eight-shop Miller Group chain.
AUGUST 2016 COLLISION REPAIR 37
EXECUTIVE VISION
Canada
WIDE
JF Champagne, President of AIA Canada, on his first year and what comes next.
By Mike Davey
E
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 Jean-Francois Champagne, President of AIA Canada. Champagne came onboard at AIA Canada in September 2015. Previously, he served as Executive Director for the Canadian Security Association (CANASA). He holds a Certified Association Executive (CAE) designation and serves on the Board of the Canadian Society of Association Executives. He discusses the current state of the automotive aftermarket, the collision repair industry and accomplishments during his first year.
C ollision Repair magazine: You’ve been with AIA Canada as President since September of 2015. What has been the most challenging part of the job so far? Jean-Francois Champagne: When I think about the challenges, it would have to be where we put our energies and how we prioritize. There are a lot of opportunites and the association is in a good position for growth. But just like everyone else, there are only a certain amount of resoures. The question is where do we put those resources to achieve the maximum effect? Coming in to the position, I thought the biggest challenge would be engaging with the industry. That’s actually been the easy part. I’ve received open doors invitations, help and support both from within the organization and from members of industry. It was a beautiful surprise to find out just how engaged members of the automotive aftermarket are. It’s a very vibrant industry. CRM: What do you see as some of the most critical challenges for the automotive aftermarket as a whole, and the collision
industry in particular? JFC: The rapid change in technology is having a significant impact and that will continue for the foreseeable future. Technology disrupts the whole supply chain. It impacts how consumers interact with their vehicles and how the cars are being built and later repaired. Vehicles are more and more software driven. This makes the need for ongoing training critical. How repairers access that information is and will continue to be key to the future of the automotive aftermarket.
CCIF will get the best possible access to information they need to stay on top of rapid changes.
CRM: What do you think is the single most important of those challenges? What would you suggest to a shop owner who is trying to deal with that? JFC: Continuous education is one way. Thinking specifically of the collision sector, I have observed that Canada’s collision industry in the forefront. Look at the success of CCIF, which serves as a central place of conversation for all stakeholders. Shop owners who get involved and participate in meetings like
CRM: The new BC division had its first meeting in April. What outcomes can you share from that meeting? JFC: I wasn’t there personally, but the people who met were creating a structure for what to do and how to do it. The concentration was on local issues and government relations. Our local divisions are a great place for networking, but the focus is on the issues. Going forward, the primary goals of the BC division will be on local grassroots events and activities.
38 COLLISION REPAIR COLLISIONREPAIRMAG.COM
CRM: AIA Canada recently announced it would start a new provincial division in British Columbia. What was the impetus behind this decision? JFC: We had representation all over the country, except for British Columbia. AIA has branched out across the country, but there was still a gap in BC. We responded to local stakeholders who asked for a local division.
EXECUTIVE VISION
CRM: Thinking solely of how it’s going to change the automotive aftermarket and the collision repair industry, what’s the biggest change we can expect in the next few years? JFC: The whole relationship of car ownership is going to change. I heard Bill Ford Jr. (current Executive Chairman of Ford - Ed.) speak recently, and he discussed how building, selling and servicing cars is no longer enough. Car companies must think of themselves as mobility providers. If you look at services like Lyft and Uber, it’s obvious that the car ownership model will change. Fewer people are likely to own 100 percent of a vehicle, especially once we see truly autonomous vehicles on the road. It will impact how those vehicles are serviced and repaired. From a social perspective, it will likely reduce the number of fatalities on the roads, but it’s also going to
change the repair business. It will definitely change the landscape enormously over the next 20 years. CRM: What else does the future hold for AIA Canada? JFC: We’ll continue to monitor trends in consolidation, the collision industry, the automotive aftermarket and the heavyduty industry. We have a very large and wide pool of volunteers to draw on for our future activities. They’re very dedicated to improving the industry. There are certainly challenges ahead, but we’re very well positioned to meet those challenges. I can say that our accreditation program for collision repair facilities is one of our top priorities currently. We’ve made a good strategic decision to say “the time is now.” Overall, the future looks good.
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Our accreditation program for collision repair facilities is one of our top priorities.
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- JF Champagne.
AUGUST 2016 COLLISION REPAIR 39
ACCREDITATION
MADE IN CANADA New AIA Canada program to establish core shop standards. By Mike Davey
T
he Canadian Collision Industry Accreditation Program (CCIAP) is set to launch in the fall of 2016. Andrew Shepherd has been tagged by AIA Canada to administer the program. Shepherd is also the Executive Director of I-CAR Canada. This is an obvious advantage, as any accreditation program for the collision industry must place a significant emphasis on training. “For 30 years, Canadians have led the world in collision repair innovation,” says Shepherd. “Our industry has built
critical items that the Canadian-designed program does not. “The industry is currently being offered several shop accreditation options from the US, but these have been developed for the American collision repair industry. They don’t take into account Canadian realities, such as our geography, language and history, or recognize that the structure of the Canadian industry is vastly different from the US,” says Shepherd. “Perhaps most importantly, they leave the control of future rules, future guidelines,
“We need a shop accreditation program that is built by Canadians, for Canadians. Our industry is unique in the world.” - Tony Canade. franchise-based MSOs that are global leaders and we’ve changed CCIF from a loosely-organized industry gathering into a collaborative engine, which brings together repairers, insurers, representatives of the OEMs, suppliers and educators. Through that consensus we’ve produced an insurer-repairer agreement on First Notice of Loss templates, which is a unique prototype for the future. We’ve also tailored an international collision repair training program to Canadian needs, generating innovative solutions which are admired and emulated world-wide. It’s time to bring the same Canadian energy to collision shop accreditation.” Shepherd notes that CCIAP puts the critical control of standards and recognition in Canadian hands. The program establishes a core shop standard for equipment, training, procedures and general business requirements. Shepherd also says the new program will match up with the programs Canada’s OEMs have already put in place. “This standard matches those developed by the vast majority of Canadian OEMs,” says Shepherd. “It audits Canadian repair facilities against these items as well as any unique standards from participating OEMs.” This is not the first or only shop accreditation plan in existence. However, Shepherd points out that the other programs have their roots in the US, and have been developed with that market in mind. They may therefore miss certain
future requirements, and future fees, in American hands.” CCIAP is delivered by AIA Canada, a notfor-profit industry association. Oversight will be provided by Canadian industry stakeholders with direct input from OEMs, insurers and all CCIF stakeholders. Shepherd says the program is designed to fit Canadian needs. One advantage of this, according to Shepherd, is that it will synchronize with provincial accreditation systems such as those found in B.C. and Manitoba. It will also serve equally in both official languages. The program has already garnered significant industry support. Canadian collision repair networks such as Assured Automotive, CARSTAR Canada, CSN Collision Centres and Fix Auto Canada have declared their support for the upcoming CCIAP. Comprising over half of the collision repair business in Canada, the networks have unanimously voiced their backing
for a shop accreditation program built by Canadian industry and for Canadian industry. Steve Leal, President and CEO of Fix Auto, captured the intent of the group. “We’ve had tremendous success by using our national association, AIA Canada, to build and deliver critical programs like I-CAR Canada and the Canadian Collision Industry Forum. AIA is not-for-profit and serves our unique needs.” Flavio Battilana is the Chief Operating Officer of CSN Collision Centres. He points to what he sees as a positive for all stakeholders. “Not only will all shops– whether banner or independent–benefit from a highly credible and not-for-profit third-party accreditation program, but our suppliers and our customers will see the advantages as well. In particular, our insurance partners will be able to draw on the program to verify the highest quality of repair service.” AIA Canada has stated that the CCIAP will establish a national field staff of auditors with a rigorous set of audit standards and will also measure collision repair facilities against participating OEM requirements. The program will thus serve vehicle manufacturers seeking shop audits to support their certified repair network programs. Tony Canade is the President of Assured Automotive. He commented on the Canadian element of the program. “We need a shop accreditation program that is built by Canadians, for Canadians,” said Canade. “Our industry is unique in the world.” Michael Macaluso, President and CEO of CARSTAR, also pointed out the distinctiveness of the Canadian collision repair marketplace. “We operate with both public and private insurers. We have intense industry consolidation but also a strong and healthy independent repairer constituency,” said Macaluso. He also noted that “no country in the world has demonstrated collision industry partnership like Canada. We should build on that when it comes to shop accreditation.” For more information on the Canadian Collision Industry Accreditation Program, please contact Andrew Shepherd, Senior Director Industry Programs, AIA Canada, at andrew.shepherd@aiacanada.com.
Clearing Up Confusion
Certification and accreditation programs seem to be multiplying quickly. In addition to the new AIA-designed program and various OEM certification programs, Certified Collision Care has recently appeared in Canada. It is no way connected with the AIA program or I-CAR. Certified Collision Care is a third-party certification program that works with collision repair facilities that meet or exceed certain technical and training requirements. The program is owned by US-based Assured Performance Network. While the names are similar, Assured Performance Network is in no way affiliated with or connected to Assured Automotive, an independent chain operating more than 60 collision repair centres in Ontario. AUGUST 2016 COLLISION REPAIR 41
One-Time-Use Parts Sometimes replacement is the only option. By Cynthia Trumbull
S
ometimes the customer wants you to fix a part even though you know it should be replaced. It was a one-time-use part installed at the time the vehicle was manufactured. These parts were never designed to be repaired and must be replaced. However, the customer doesn’t understand this throw away concept and doesn’t want to incur the
Mitchell’s UltraMate includes Toyota Recommended Repair Procedures (TRRP). Estimates written with TRRP will have non-reusable parts automatically added to the estimate for most Toyota models.
replacement cost. It’s up to you to ensure customer satisfaction, which is paramount to the return of the customer and to your bottom line. Don’t jeopardize customer satisfaction by reusing nonreusable parts. Your customer will thank you for the information and explanation of non-reusable parts and drive away satisfied that they received excellent service.
Some parts can be used again, but some, such as windshield washer nozzles, cannot.
Don’t jeopardize customer satisfaction by reusing non-reusable parts. Understanding Non-Reusable Parts “Non-reusable parts—sometimes referred to as one-time-use parts—are parts that are designed to be installed only once,” says Paul Stella, Manager, Collision Repair and Refinish for Toyota Canada. Toyota doesn’t recommend non-reusable parts be reinstalled. Items such as glass, fasteners, gaskets, emblems, clips, grommets, garnishes and decals are often designated as non-reusable parts because of how they are designed. This means that if you are repairing a vehicle and you remove any of the parts mentioned above, you must replace them if they are specified as non-reusable in the vehicle repair manual. “Non-reusable parts shouldn’t be reinstalled because they won’t operate as they were originally designed to upon second use,” explains Stella. “Reusing these parts can lead to customer dissatisfaction and a failed repair. It can cause water or air leakage, rattling, or
can accidentally damage other nearby parts.” Toyota one-time-use parts can be identified by checking the Toyota Service Repair Manual for the vehicle you are working on. The parts are called out in the components section. Non-reusable parts have a black dot next to them and the key for the diagram will indicate that the black dot means the part is nonreusable. Estimators and technicians should review this material before work begins on any vehicle. This will ensure that all necessary work is captured in the estimate and that you have all the parts needed to complete the repair satisfactorily. Collision centres who are using Mitchell Estimating (UltraMate) will have access to Toyota Recommended Repair Procedures (TRRP). Estimates written with TRRP will have non-reusable parts automatically added to the estimate for most Toyota models.
TECH TALK
Know the Facts Regarding Non-Reusable Parts Non-reusable parts come in all shapes and sizes and the reason for their non-reusable designation varies. Below are some examples of common non-reusable parts. • Windshield Washer Nozzles - These parts are usually made of plastic that has spring to it. They are designed so that when they are installed, the plastic bends in, then bends back out again. The part will be squeezed and bent again during the removal process for a repair. However, the part is not built to withstand being squeezed during removal and reinsertion. If so, the plastic will lose its springiness and may fail to perform as originally intended. The part may then rattle around, break, or even fall out. • Tail Light Gasket - The gasket in the tail light is an important component because it creates a seal that keeps water from entering the vehicle and prevents wind noise. The tail light gasket is commonly made of foam material that is designed to squish together to form the seal. Once crushed, the material will not bounce back and therefore cannot be reused to create another seal. A good rule of thumb for all gaskets is to check to see if they are one-time-use and always replace them if they are designated non-reusable by Toyota. • Moisture Barrier - The moisture barrier is a
plastic barrier that you will find when you remove a vehicle’s interior door trim panel. This piece is intended to protect the interior of the door from moisture. When the moisture barrier is removed it becomes deformed and can no longer perform its function properly. Moisture barriers should be replaced every time they are removed. • Emblems - During the course of a repair your shop may be asked to clean and re-tape vehicle emblems. In the factory, emblems are precisionmade. It is almost impossible to recreate this process in the shop and if you attempt to re-tape emblems you most likely will not get the same fit and finish as the original decals. Technicians are advised to replace rather than re-tape all emblems. As with any collision repair related issue, it is important to be transparent with your customer about the work necessary to deliver a high-quality repair. If customers question the necessity of replacing rather than reinstalling a non-reusable part, help them to understand that replacing one-time-use parts is part of the manufacturer’s recommendation for the repair you are carrying out and provide them with OEM supporting documentation. To access Toyota repair manuals (Technical Information System –TIS), please visit techinfo.toyota.com.
Using Mitchell’s UltraMate gives technicians access to Toyota’s recommended procedures, including which parts must be replaced. AUGUST 2016 COLLISION REPAIR 43
READY TO
REPORT ON TRAINING
TRAIN?
ICBC transfers training to ARA.
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T
ICBC went through a round of government cuts that started in 2011. Many middle-managers were laid off.
he recent decision by the British Columbia government to transfer a collision repair training program from the provincial insurer to a regional industry group has some collision repair centre owners in the province scratching their heads. Earlier this year Todd Stone, British Columbia Minister of Transportation and Infrastructure, appeared at the annual meeting of the Automobile Retailers Association (ARA). In that appearance Stone said the government would allow the provincial insurance provider, the Insurance Corporation of British Columbia (ICBC), to hand off its training program to the ARA. The decision is a controversial one. For years ICBC ran a basic training program for collision repair techs. The program was run out of a facility in Burnaby. The course offered basic material damage (collision) training. ICBC contracted out the training. These courses offered basic accreditation for shops hoping to work with ICBC. ICBC went through a round of government cuts that started in 2011. Many mid-level managers were laid off. The training program suffered cuts as well. The program began to lag and wasn’t able to keep up with changes in the industry. Now the government-run insurer has decided to get out of training altogether. The decision to hand off training to the ARA strikes some as rash and unconsidered. Many in the industry see the decision by ICBC as a break with a continent-wide trend toward the adoption of the training
programs and courses created by I-CAR. Those in the collision repair industry talk about something called the “Manitoba Solution,” a phrase used to describe the process whereby government insurance programs such as Manitoba’s provincial insurance company adopt the I-CAR certification process and demand that shops looking to gain certification in a province acquire I-CAR Gold status. I-CAR’s programs are the generally accepted industry standard across most of North America. That ICBC is bucking that national and continental trend by offering the BC training regime to an organization active only in one area of the continent seems short-sighted and out-of-step to some in the industry. Many wonder if this decision simply adds an unneeded, extra layer of bureaucracy to the training regime. Has Minister Stone decided to “reinvent the wheel” in terms of collision repair industry training on the West Coast? Rick Francoeur is the President of the 360 Group of Companies in Abbotsford, BC. He and his brother Daryl have a combined 51 years of experience performing collision and customization work in the province. In an interview with Collision Repair magazine Francoeur said he was dismayed by the deal. “At the risk of angering both parties, I think it’s ridiculous. I don’t understand why BC would develop a training program that is different than the rest of North America. I have no idea why they’re doing this,” said Francoeur. In an earlier email correspondence Francoeur had suggested that he didn’t
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By Jeff Sanford
“believe the ARA has the capacity to take over the training for ICBC.” He suggested it would be a “challenge” for the ARA to hire the staff necessary to facilitate this “and pay for it.” Francoeur noted he thinks it is good that ICBC will no longer be doing training. Francoeur is also a member of the ARA. Nevertheless, the deal doesn’t make sense to him. “I pay my $700 a year to the ARA. And sure, at the end of the day I want the ICBC to be out of training. But the I-CAR program is the North American standard. Just give them the contract. I’m sure the ARA is begging to justify their existence, but why do we have to do it this way?” In a recent interview with Collision Repair magazine, Ken McCormack, President of the ARA, explained that it has long been a policy of the organization to have training done by an organization other than ICBC, which had set up its own training program. Previously ICBC had provided basic material damage (collision) training. The organization contracted the training out to instructors who worked in a Burnaby-area building owned by ICBC. ICBC will still be involved in accrediting shops in the province, but the insurance provider won’t be providing direct training. This makes sense— having the provincial insurer in charge of training for collision repair facilities could be seen as a conflict of interest. In this the move seems a smart one, and many expressed they are in agreement with this aspect of the deal. “We’ve always advocated that ICBC should get out of that and leave training AUGUST 2016 COLLISION REPAIR 45
REPORT ON TRAINING
with industry. We’ve long advocated as an association that training should be done outside,” says McCormack. He went on to explain that the training issue was moved along by deep staffing cuts at ICBC a couple years ago when hundreds of mid-level managers were purged from the organization. The training program ICBC was running was lost in the cuts. “That’s where this starts,” says McCormack. Rick Hatswell, COO of the Craftsman Collision chain, suggested the ARA deal was good for the industry. “I like it. I think it’s an exciting thing that the ICBC created a training program and we’re going to continue that,” says Hatswell. “What we’ve found in the last five years is that with all this new technology there is a real gap between what OEMs and ICBC were offering. They [ICBC] were a little behind. We had to take hybrid-engine training from a local guy. Ultimately the industry has decided that the industry should look after things for themselves. Kudos for them for putting training in place. I think it’s important to be able to take control of our industry.”
The ARA was founded in 1951 by a group of service station owners. Over the years the organization has created various divisions for towing, recycling and collision, and lobbied the government on behalf of members. That role shifted several years ago when the ARA lost the right to lobby on behalf of members.
In 2010 the ICBC wrote a letter to the Competition Board of Canada asking the board to rule on the legality of allowing the ARA to lobby on behalf of members. The Competition Board ended up ruling against the ARA, thereby preventing the organization from carrying out its original function. Today, the ARA carries on various commercial activities. The ARA is the single shareholder of the Automotive Retailers Publishing (ARP), a privately owned corporation that publishes two industry trade publications, Tow Canada and Collision Quarterly. Is the ARA in search of a new role in the industry? Some think so. “The ARA is constantly trying to prove their worth. I’m sure there are some politics involved. It seems to be a provincial thing,” says Francoeur. He wonders if the minister has “done his due diligence. If the ARA needs to have something to make the group have value ... that’s one thing. But leave the training to the trainers. Why add another layer of bureaucracy? It’s another layer that we don’t need. In BC the collision repair industry is in survival mode. What are they going to do, hire a bunch of new people? Use the existing guys to do the training course. It makes no sense.” Francoeur went on to outline his practical concern. “What If I want to hire a guy
from Alberta? Now I have to get him retrained. It makes no sense. I think it’s a waste of time. I’m pretty sure they have the same Chevy cars in Alberta that they do here.” When asked for comment, ICBC Senior Media Relations Advisor Adam Grossman replied with an email stating that at the 2015 ARA annual general meeting, “the Honourable Minister Todd Stone announced a ‘potential’ transfer of material damage technical training to be managed by industry partners.” The next step in the transfer of responsibility was, according to Grossman, the development of “a business plan, in coordination with ICBC.” Over the past six years, Grossman says, “ICBC has been transitioning away from providing industry training in order to focus on our internal material damage programs to improve services for our customers and business partners.” As this story was going to press news emerged of a meeting between I-CAR
Is the ARA in search of a new role in the industry? Some think so. officials and the ARA, so there may be a deal in the works to have ARA adopt I-CAR content. And McCormack did suggest in the interview that his organization will look to partner with I-CAR for the training course. This would ensure some consistency across the country in terms of training. Nevertheless, some wonder why there needs to be an “extra” organization inserted into the more direct relationship that exists between shop owners in the rest of Canada and I-CAR. Those involved in auto body training through trade courses at provincial
46 COLLISION REPAIR COLLISIONREPAIRMAG.COM
colleges also seem concerned about the shift. According to the minutes of a meeting of the Auto Collision Articulation Meeting at the College of New Caledonia School of Trades & Technologies Room conducted some time ago the question of what to do if ICBC stops or reduces involvement in training was debated. At the time it was noted in the minutes that ICBC was looking at going with I-CAR Gold Class. But the notes of the meeting also suggest that ICBC would consider alternative to I-CAR if they were developed and met ICBC standards. According to the minutes of the meeting, “Developing alternatives to I-CAR is not feasible as I-CAR courses are readily available so collaborating with I-CAR and modifying [courses] to meet needs is the productive option.” That is, some among the community of college trainers that provide training in collision repair seem to be in favour of a direct relationship with I-CAR, a la Francoeur’s concerns. “It’s just a waste of time. I don’t want ICBC doing it, but I don’t want ARA creating a whole new course either. I-CAR has the program. We have lots of trade schools. They’re set up. We already have that up and running. If I-CAR is good enough in Alberta and the rest of the Canada—if it’s good for the rest of North America—why isn’t it good enough for BC? I don’t get my detailer to pull frames. Why not let the people who do training, I-CAR, do the training ... let them be what they are,” says Francoeur. Andrew Shepherd is the Executive Director of I-CAR Canada. We asked him to comment on the situation. Shepherd responded with the following statement: “As you know the training and accreditation situation in BC has been up in the air for the past couple of years. It appears that ICBC and ARA are repositioning themselves in this landscape and we’re certainly looking forward to some clarity,” said Shepherd. “I do know that the OE certified repair networks and other national and international standards continue to develop. I can only hope that whatever approach emerges in BC fits the larger context, since that is the world that repair shops must operate in.” Check out collisionrepairmag.com and future issues of Collision Repair magazine for continuing updates on this ongoing story.
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GLOBAL VIEW
Changing Future
LANDSCAPES Des D’Silva of Assured Automotive, Gillian D’Silva, Harry Dhanjal of BASF and Darryl Simmons of Collision Repair magazine.
C
ollision repair leaders from across the globe converged on Barcelona, Spain, for the 2016 IBIS Global Summit. Every year the conference brings together the collision world’s elite for knowledge sharing, thought leadership and unrivaled networking opportunities. Collision Repair magazine is the exclusive Canadian Media Partner for IBIS 2016. The event got underway at Hilton Diagonal Mar Barcelona on May 23 with a welcome reception. The conference really got into high gear on May 24 with the first presentations. Leading off the slate was an introduction and update on IBIS. Richard Offermann of Google was next to take the stage. The theme of IBIS this year was “changing future landscapes” and there are few organizations as well placed to cover this as Google. The company first entered the automotive world with the introduction and testing of it’s self-driving cars. IBIS is hosted in a different nation each year, with part of the conference given over to an in-depth examination of the challenges faced by the host nation. This year Gregorio Rodríguez Santos of MAPFRE Internacional presented on being a Spanish insurer in the global market, and Ignacio Juárez Pérez of research organization CESVIMAP discussed claims handling in the Spanish market and the latest repair techniques. After a break for lunch, delegates returned to the hall for “Beyond Consolidation” delivered by Bradley Mewes of Supplement!, a consulting firm specializing in the collision repair industry. Mewes discussed the future of collision repair and where the industry is headed after consolidation has reached its peak. More discussion of consolidation trends followed, with David Smith, Vice-President Supply Chain/Procurement for Caliber Collision Centers, one of the largest multi-
Advanced technology and the need for training under discussion at IBIS 2016.
store operators in the US. Smith spoke on “MSO procurement strategies: changing the vendor relationship.” John Fearn of Broadspire by Crawford & Company was next to the stage. Fearn presented on connected claims, examining how third party administrators add value and new business models for the insurer/ repairer relationship. The second day of IBIS 2016 concluded with an international dinner. Training, advanced driver systems and the power of technology were all under discussion on the third day of the International Bodyshop Industry Symposium. Presenters for day three of IBIS 2016 included John Van Alstyne of I-CAR, Neil Atherton of Autoglass UK and Tony Aquila of Solera Holdings. I-CAR CEO and President John Van Alstyne was first to the podium for the third day, focusing on the need for continuous training to deal with what he refers to as the “technical tsunami” of new car models and technologies. He noted that some of the changes we’ve seen in vehicles in recent years are due to lightweighting efforts. In particular, materials have changed and adhesives are much more commonly used than in previous years. “Vehicle architectures are changing significantly,” said Van Alstyne. “This is bringing new repair techniques, with repairs becoming vehicle-specific. Advanced electronics is another key area of change and, as an industry, we’re dealing with rolling computers now. IBM says we’re on track to have perhaps 100 million lines of code in vehicles.” Van Alstyne noted that this is part of the reason for making sure to scan the vehicle and perform correct diagnostics. “Diagnostics is really critical; we have to do it pre-repair and post-repair, because we’re dealing with an integrated system,” he said.
48 COLLISION REPAIR COLLISIONREPAIRMAG.COM
Van Alstyne also pointed to increasing vehicle sales around the world, which will place more strain on the industry. He noted that even in developed countries with a mature vehicle industry not enough training is taking place, leading to a growing skills gap. “The skills bar is rising. We need to recognize it and act upon it. Education, knowledge and skills are the glue that holds it all together. If you’re not training, you shouldn’t be repairing cars today. Training equals survival,” he said. Neil Atherton of Autoglass UK was next, discussing the importance of proper calibration for Advanced Driver Assistance Systems (ADAS), and the challenges the systems present to the industry as a whole. During his presentation, Atherton discussed the coming advent of selfdriving cars and the technologies that represent different levels of development. In Atherton’s view, autonomous vehicles are already here. It is the ethical and legal framework that still needs to be fully developed. “Camera systems have been around for a number of years now, but the number of applications and makes and models utilizing them is set to explode globally,” he said. “A combination of government influence and consumer-led NCAP programs will drive more vehicle manufacturers to adopt ADAS technology.” Atherton used this example to point out the challenges for repairers regarding the increasing amount of ADAS in today’s vehicles. According to Atherton, many vehicle manufacturers mandate calibration after replacing the windshield. This is to ensure the cameras and sensors provide the system with accurate readings. Tony Aquila of Solera Holdings brought IBIS 2016 to a close with a look at how repairers must embrace technology to survive and thrive. “Technology is changing the game,” said Aquila, as
GLOBAL VIEW
"We’re dealing with rolling computers now. IBM says we’re on track to have perhaps 100 million lines of code in vehicles." - John Van Alstyne of I-CAR. Harry Dhanjal of BASF, Des D’Silva of Assured Automotive and Michael Macaluso of CARSTAR.
reported by Bodyshop UK. “It’s changing business from a contact sport to a content sport.” Aquila started in the collision repair business sweeping floors in a body shop. He later went on to found Solera Holdings, a multibillion dollar software company. Solera Holdings includes Audatex, Hollander, HPI and CAP, among many others. Aquila noted that there are 54 transactions across a vehicle’s life. Solera’s goal, according to Aquila, is to be the “Amazon” of those transactions. Aquila believes that there is essentially only one way for a company to move with the
Michael Macaluso, President of CARSTAR North America; Mike Stronger, Managing Director of the UK’s Unipart Group and Jim Muse of Axalta.
times and not get left behind: to innovate. “Websites are for the company, not the customer,” he said. “Apps are for the company and the customer. Apps is the war. It’s going to be everything. All our technology is going to be on apps and we’re pouring hundreds of million dollars into it. There will be a king of apps that consolidates all your apps. You’re going to have to be in the app game too.” In conclusion, Aquila noted that simply “doing it right” will not be enough in the future. The key, he says, is to go beyond that base level and do it both better and differently from the competition.
Julio Bruno of CSN-Glen Merritt and Flavio Battilana of CSN Collision Centres.
David Smith of AkzoNobel and Michel Charbonneau of Carrossier ProColor/Uni-Select.
Bob Kirstiuk of Advantage Auto Parts, Nicole Kirstiuk and Andy Baker from Fix Auto Australia (centre).
From left: Dan Hogg, CFO, Fix Auto World; Steve Leal, President & CEO, Fix Auto World; Aleeshen Kisten, Director, Repair Solutions; Desmond Chan, Network Development – Asia, Fix Auto World; Jean Charles Dupuis, COO, Fix Auto Canada; David Lush, President & CEO, Prime CarCare Group and Gabrielle Comtois, VP Finance, Fix Auto World. AUGUST 2016 COLLISION REPAIR 49
INDUSTRY EVENT
The Next Generation Repairer panel at Fix Auto’s annual conference: Joshua Sigouin, Alexandre Dube, Brayden LaBossiere and Calobe Miller. The panel presented insight into why they got into the business, why they’ve stayed and why they choose to work with Fix Auto.
The Next Generation Fix Auto focuses on the future at latest annual conference.
T
he right time for change is not when things are going wrong, but when they’re going well. That was one of the messages delivered by Fix Auto President Steve Leal during his opening remarks at Fix Auto’s 2016 national conference. The conference took place at the Westin Calgary. The theme for this year’s conference was “The Next Generation.” During his address, Leal referred to the story of Polaroid. At one time, Polaroid cameras were effectively the only way to achieve instant photos. In particular, the company’s products were widely used in the collision repair industry for estimating purposes. When the digital camera revolution came along, Polaroid refused to make a big change and ended up shutting its doors. Leal also discussed the recent news of the Prime CarCare acquisition and Fix Auto’s global expansion. The network now operates in eight countries, with a total of 430 collision facilities expected by the end of June 2016. Vice President of Marketing Carl Brabander served as emcee for the conference. After Leal concluded his remarks, Brabander welcomed keynote speaker Alexandre Bilodeau to the stage. Bilodeau is a retired freestyle skier, and the first Canadian to win a gold medal at
an Olympic Games held in Canada. The attendees seemed to respond well to his message, which can be summed as “take nothing for granted.” “Nothing can be taken for granted,” said Bilodeau during his presentation. “You’re only as good as your next deal.” The first of several panel discussions followed. In this case, the focus was truly on “The Next Generation.” Moderated by David Lingham of IBIS Worldwide and Orbis Business Impact, the panelists were all apprentices who provided insight to the assembled stakeholders on why they got into the business, why they’ve stayed and why they choose to work with Fix Auto. Retention of young employees is of critical concern for the aging collision repair industry. Among other highlights, the panelists listed having a good mentor and providing new technicians with opportunities that show them the potential of the industry as critical for retaining younger staff. On the “don’t” side, the panelists pointed out that if you keep a new person detailing cars at $14 an hour, they will almost certainly want to leave and go into an other industry, such as construction, to make $18 an hour. One panelist also noted that while money is important, the collision repair industry needs to focus on presenting
collision repair as a career path, rather than just a way to make money. In conclusion, another panelist noted that part of the trouble with recruitment is a general lack of programs available at the high school level to pique student’s interest. Following the lunch break, Carl Brabander discussed the evolution of customer expectations and announced the launch of several initiatives that build on Fix Auto’s recently redesigned web site to build Fix
Steve Leal, President of Fix Auto, opened the conference and discussed the Prime CarCare acquisition. AUGUST 2016 COLLISION REPAIR 51
INDUSTRY EVENT
The team building activity at the Fix Auto Conference. Attendees were split into teams and tasked with building the bicycles in an alloted time. The completed bicycles were given to underprivileged youth in Calgary.
Auto’s mobile channels. Brabander also unveiled new brand standards that will be rolled out nationally over the next one to three years. The presentation also included an announcement of the upcoming launch of the Fix Auto Hub, an online all-in-one resource for Fix Auto operators, including an online dashboard designed for Fix Auto operators to monitor and manage their shop performance KPIs in real time, and on mobile devices. The first day of the Fix Auto conference wrapped up at a special welcome reception held at Sky 360, a revolving restaurant located at the top of the Calgary Tower. The second day of the conference led off with a look at Fix Auto’s community efforts, and an announcement of a national partnership with a major non-profit organisation that will be announced in the coming days. The presentation was followed by an interview with Jean Charles Dupuis, SVP and COO for Fix Auto.
Carl Brabander of Fix Auto served as emcee of the event.
The second keynote speaker was next to the stage following Dupuis. Frank O’Dea is an entrepreneur, humanitarian and author. The co-founder of the Second Cup chain, O’Dea captivated the audience with stories of his life as a homeless panhandler and how he rose from that background to found several successful businesses and international not-for-profit organizations. The second panel discussion followed O’Dea. The panel this time was composed of insurers discussing “Next Generation DRP.” Panelists were asked to predict what the automotive insurance industry would look like in the year 2021. According to the panelists, we’ll like see an increased focus on delivering what consumers want, including a simplified process and a seamless, positive experience. Also under discussion for the panel was the essential matter of advancing technology, with one panelist noting that
David Lingham of IBIS served as moderator of the 'Next Generation Repairer' panel. 52 COLLISION REPAIR COLLISIONREPAIRMAG.COM
Laura Pennings of Fix Auto and Gloria Mann of Collision Repair magazine.
certain technologies in vehicles will almost certainly drive the total loss frequency higher than it was previously. Another panelist noted that it seemed likely that not every shop would be able to repair every vehicle, so insurers and the OEMs need to find ways to work together. Elaborating on this theme of cooperation, one panelist noted that collaboration and sharing of information will be more important and vital than ever before. Another panelist noted that insurers are currently working with the OEMs to see how they can help drive this cooperation. Following a brief break for lunch, attendees engaged in team-building activities. The second day of the Fix Auto conference concluded on with a Gala event and the presentation of awards to stores and individuals who have gone above and beyond in the last year. For more information, please visit fixauto.com.
Another view of bike building.
FEATURES
Big Business Canada’s heavy truck collision repair centres bring the big rigs back to life.
By Jeff Sanford
T
he collision repair industry is a varied and diverse place. Some shop owners specialize in fleets. Others focus on imported cars. There are those who do custom work. Some do paintless dent repair. And then there are those who work in the biggest and most expensive shops in the country, the heavy truck collision repair facilities. Stepping into this world is to enter the land of giants. The shops are the biggest in the industry. They sprawl across tens of thousands of square feet. The paint booths can extend beyond sixty feet in length. The vehicles are the largest on the road. Techs haul huge parts up and down ladders to service them, so the work is hard and physically taxing. But the work also demands real skills. Straightening a multiaxle trailer rollover on a massive 60-foot frame is no small bit of work. The repair bills are massive, often more than what most people spend on a brand new car. So it’s no wonder the competition is fierce. A sluggish economy has many in the sector working harder than ever to keep clients loyal, but those who survive are proud of what they’ve accomplished. It might be appropriate to say that heavy truck collision repair is the toughest, most hardcore sector in the industry. Garry Letichever is the CEO of Toronto Truck Collision. The company has been in operation for over 35 years. They do truck alignment, body damage repair, chassis modification, refurbishment, refinishing, frame work, panel beating, cab and chassis straightening and painting. They do this on everything from fridge body vehicles to horseboxes. The shop can handle and repair any make and model of truck up to 10 tonnes. The building itself is a fantastic and massive 37,000 sq. ft. space located in the urban jungle of north west Toronto. This isn’t the usual setting. Most heavy truck collision centres are found just outside cities in large industrial parks near highways. The company’s paint booth is a
Western Paint & Body Works has found a niche halfway between heavy vehicles and the luxury market: RV repairs.
mighty and majestic 62 feet long. “Trucking is a tough business. It’s not easy. Operators just want to get that rig back on the road,” says Letichever. “They have a load to haul. Their money is just sitting there when they’re not driving.” The commercial nature of the vehicles drives the business dynamics of the industry. These are invariably working vehicles. Time off the road costs a lot of money and so there is huge pressure to get the trucks fixed and back out on the road. “Estimates can take five or six days,” says Letichever. “You can get an estimate in an hour on a car, but in this sector the parts are coming from the dealer. You have to wait to get the quotes back. It takes time.” No matter what, the cost of repairing a big rig that’s been in a collision is going to be huge. Insurance companies take longer to okay estimates. Getting an insurer to sign off on a work order that is over $100,000 is going to take some time to arrange. According to Letichever that lag time often gets the owners of the trucks riled. “By the time insurance companies get around to checking the estimate the owners are already getting impatient,” he says with a laugh. “The owners of the fleets get on the insurance companies real quick. They want their trucks back on the road. It’s not uncommon for us to be waiting on an estimate for two or three weeks.” If the wait time is too long and damage to a truck cosmetic, not structural, Letichever will sometimes send the rig back out on the road until the okay comes in as a way of saving the client money. “I’ll put it back on the road and get it out there. If you’re the owner of a fleet you want your truck on the road. Once we get the go-ahead we’ll bring it back in and get the damage fixed up,” he says. The volume of work at the Toronto facility is steady. “I don’t know about other places but we’re lucky to have lots of contact and insurance work,” he says. Letichever notes that statistics indicate
there are about six-and-a-half thousand accidents reported each year in his region alone. “We get a steady volume, three to five a week. People are always crashing. It doesn’t matter if the economy is up or down. If trucks are moving there are going to be accidents,” he says. Every job that rolls into the shop is unique. A trailer can smash into another trailer. Trucks can jackknife. “It’s all kinds of things. Every case is different,” says Letichever. The final repair bills in this sector are also the largest in the industry. “It’s not uncommon to do a $60,0000 or $80,0000 repair. You’re not going to write off a truck if the work can be done for $70,000 or $80,000,” he says. When asked if he has any complaints, his answer is one that will be familiar to anyone in the industry, be it car or heavy truck repair: “Insurance companies trying to take shortcuts ... that’s always an issue. We’re always fighting with the insurance company. We’re always trying to get the repair done right.” Today, big transit companies like the Toronto Transit Commission and the transit authority in Hamilton run their own large shops for their bus fleets. Other heavy truck shops will focus on construction machinery, which is most common in the west where energy infrastructure projects see greater numbers of heavy trucks running on rough, remote roads. Another interesting niche in this sector involves the biggest vehicles travelling at the highest speed through cities, fire trucks. In Calgary, Alberta, Brenda Petraschuk works as VP of PET Auto Body. She runs the company with her partner Darrell. Like so many of the husband and wife teams in the industry, Darrell oversees the customers and the techs on the shop floor. Brenda runs the operation and does the books. Hard work and many sacrifices have ensured that the company has thrived since 1992. “We work really hard,” says Petraschuk. AUGUST 2016 COLLISION REPAIR 55
HEAVY REPAIR
Outside PET Auto Body in Calgary. Everything about the heavy truck repair facilities is bigger than usual, from the facilities themselves to the oversized paint booths.
Her secret to staying in business is cultivating and maintaining loyal longterm customers as well as building a great ensemble team of employees. “Both our customers and employees are integral to our business. Without customer service, quality and trust you have nothing, but you can’t build that foundation without great employees. For Darrell and myself, both our employees and our customers are one big family unit, and that is how we can maintain the long-term relationships,” she says. “Family first. Our company is successful because of the name we have built for ourselves, because Darrell earned the trust of our customers, but it took our team to build it.” She says it was tough going in the early days. “It was hard. We had to earn a lot of respect and trust from our clients. It took a while,” she says. “We had some really lean times in those first five to seven years.” More than a quarter century later, the reputation has solidified as a result of consistently good service. “Quality control is everything in this industry,” says Petraschuk. “The first thing isn’t price. Long after the job is done it’s not the price they remember, it’s the quality and service. We work one-on-one with the customer. We’re very personable. I think that’s the difference. Our estimates are complete and thorough and our company is well known throughout the industry. We work with our customers to ensure that they are completely satisfied. We work with our employees to ensure that they are satisfied. We are a family here.” Consider these words of wisdom from someone who has been through both good and bad times. “Many of our clients have been with us from the beginning. We have grown together and we help each other out through the good times and the bad times. Having those long-term clients really helps. Our clients know that they can trust us, that quality and service sets us apart from our competitors. That’s our secret. Other competitors may be struggling, but we are
still here,” says Petrashuck. Along with a good clientele list some of the work for the shop comes from the Calgary Fire Department, which often sends its firetrucks to PET for repair. “They’re great people to work for and with,” says Petrashuk. To update its marketing the company recently produced a video of their massive paint room. A customer who recently got into drones flew the camera-equipped device into their massive paint room (check out the video at petautobody.com). “We’ve never done a lot of advertising. It’s been word of mouth,” says Petraschuk. “But that was kind of fun.” Like so many in the province of Alberta these days she’s a bit worried about the economy. In the wake of the Great Recession of 2008 the price of oil has plunged from record highs and the economy has taken a hit. “We’re hoping the pipelines get built,” says Petraschuk. New energy infrastructure projects would help heavy truck repair facilities. The trucks that haul materials to remote construction sites experience vibration damage, cracked windshields and dented bodies. But there are few big energy projects underway. The oil-dependent Alberta economy is sluggish. “The business in Alberta right now is not as it had been. It’s trickling in. There is not as much work being done right now. No one is doing any more than they have to. Customers aren’t spending money. They’re not upgrading equipment. If they have to fix something, they fix it, but they’re not doing anything extra,” says Petraschuk. “We’ll see how this summer goes. Summer is the slow time. Clients will sometimes use that time to get their trucks painted. Hopefully we’ll see some of that this year.” Concerns about the state of the Alberta economy are rife throughout the sector. “It’s tough in the province right now. I can see three or four ‘For Lease’ signs from my office. The street we’re on is quiet. There’s nothing going on. It’s a like a light switch went off here
56 COLLISION REPAIR COLLISIONREPAIRMAG.COM
in Alberta,” says Steve Ray, General Manager of Western Paint & Body Works. His company does heavy truck collision repair in Calgary. In the past Western has targeted the motor coach and bus sectors. Today the focus of the company is shifting again as the industry changes. Ray explains the deep shifts occurring in the industry. “Trucks are about five years behind cars. You’re just now seeing adaptive cruise control, lane change assist and automatic braking on trucks,” says Ray. That is, the number of sensors and cameras on the big rigs is exploding, making repairs more expensive and complex. New features like automatic braking and lane change assist are working to reduce the number of accidents. This is making it tough for the smaller shops. “When it comes to the heavy truck collision repair industry in Calgary it’s a small community. There are probably five big places in a city of one million. The best techs know where they should go. That’s the way the business is. And I’m okay with that,” says Ray. Time to find a new niche line of business. Which is what Ray did. He got serious about focusing on a specialty niche in the heavy truck collision repair sector. He spent a year and a half researching what areas of the industry were under served. The answer that came back was recreational vehicles (RVs). “When I talked to people it turns out there was an opening here. We’ve found a market where there aren’t too many guys. We really go after the RV business now,” he says. “You can’t be a one trick pony in this business. You have to change direction when the market demands. You have to think about where the market demand is. When the market demanded long haul trucks we did them. When the market demanded school buses we did a lot of school buses. Now the boomers are retiring and so we do what we have to do.” There is never a dull day in heavy truck collision repair.
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REPORT ON TRAINING
Inside View:
Jeff Peevy on the ‘Next Generation’ Automotive Management Institute By Jeff Sanford Jeff Peevy.
T
he Automotive Management Institute (AMi) recently announced the launch of the “next generation” of the organization. The new President of the non-profit organization, Jeff Peevy, unveiled a series of courses that have been created to address the challenges of a changing industry, including courses designed to upgrade the skills of front office personnel. Customer service is extremely important in today’s marketplace. The revamped AMi program aims to provide training in the service-oriented skills needed by those working in the front office. The new program includes six new front office and management certificates and professional designations. The organization also offers access to more than 100 relevant online courses that have been created by outside parties but have been vetted and cleared for AMi certification. There is also a new website and a world-class online Learning Management System that brings the organization’s offering into the modern era. “The new AMi represents more than a year of soliciting, organizing and prioritizing industry feedback to ensure we offer the most relevant professional designations, career paths and overall management educational support possible,” said Peevy. The non-profit was established in 1989 and to date AMi programs have attracted more than 250,000 enrollments throughout North America. But the company began to drift a bit over the last decade. “It’s kind of a classic example of an organization that didn’t change on the inside to keep up with the change that was happening on the outside,” said Peevy in an interview with Collision Repair magazine. “The board of trustees had a decision to make; shut down or make the organization into something.” The board made the decision to overhaul the course program. Recognizing Peevy’s deep experience in the industry—Peevy worked for
I-CAR for 16 years in a senior capacity—the board of trustees offered him the chance to help come in and rebuild the organization. “They were still an organization. They had 8,400 students registered a year. But that wasn’t near what it should be. The company didn’t continue to invest in infrastructure. They didn’t have any online courses, no advertising, no trade shows,” said Peevy. Thirteen months ago he was brought on board and began the long process of overhauling the program and spent six months travelling and engaging with the industry. Peevy was pleasantly surprised to find the organization had good reserves, so there was capacity in the organization to do a revamp. “The lessons I learned in the past, about prioritizing feedback, strategic plans, it all came together,” he says. Last week the revamped course program was launched after more than a year of preparation— Peevy looks forward to re-engaging the industry with the new product. “It’s exciting. For the last two months I have been doing non-stop presentations, to try and get some engagement with the industry,” said Peevy. “I find there are
two types of people out there. One is the generation of people who knew AMi, but now they don’t. They haven’t heard from us in years. They don’t know who we are now. And then there are people who haven’t heard of us.” The new organization will reach out to both audiences. The revamped organization has a learning foundation that will take in tax deductible donations (and will trade donations for advertising in some cases). There is also the new set of courses that will combine the latest digital technology with updated course content to provide a modern, effective training regime. “We believe we can help a shop improve their
KPI scores,” said Peevy. An interesting aspect of the new program is the focus on the front office staff. Typically the client-facing employees in a shop are overlooked when it comes to training. The new AMi courses will address this gap in training. “Whether it be NACE or SEMA, a lot of the front office people don’t attend those things. But that’s where a lot of the training happens,” says Peevy. “There was a need for online courses that could help these people.” The new courses aim to make training more consistent. “Often you can have three or four people who present the same designation, but have no consistency. They are all marketing, or finance, or operations,” he says. AMi has created a course program that has seven different knowledge areas, among them marketing, operations, IT management, risk management, sales and leadership. But those taking the courses will have some grounding in all these areas. “For IT management, we’re not making an IT guy, but as an operator you need to know the basics about cybersecurity and email. You have to have that foundation,” said Peevy. The courses are also designed to create organizations that are what Peevy calls “constant learning organizations.” “What I found was that where the weakness lay was in the communication in the shop. There wasn’t lots of feedback in the back, front office staff and service staff. Often that there wasn’t what I would call a ‘learning culture’ within the shop,” said Peevy. Looking back, he remembers some shops that came in for training and were performing well, “I didn’t think I could help them. But what we found that the higher performing shops got much better. The average shop would come in and get a bit better. The shops performing at the lowest level, the shops that I thought we could really help got a little better for a year and then they lost it again,” said Peevy. What he found was that the culture AUGUST 2016 COLLISION REPAIR 59
REPORT ON TRAINING
within the shop dictated how the shop performed. “We identified the culture, and understood it. Shops that had a leaning culture and had a tendency to share what people knew in the shop did better. Having a learning culture within a collision repair shop means that there is culture there that encourages understanding and sharing. They know that learning is the only source of a sustainable competitive advantage. That means that from the owner to the manger and down to people doing the detailing there is a constant effort to improve. When the manager or owner sends someone to a class they set an expectation to learn. Typically they have a conversation about what they learn when they get back. They share what they learn. There is an openness to share. They’ll say ‘I read this article, or I went to this course, check this out.’ There is an intentional application of the learning. Some shops go so far and have that person lead a seminar in the shop when they get back from training,” said Peevy. This approach to learning is very different from that found in shops that use Peevy calls “an industrial-age management mindset.” In those shops employees are essentially labourers. “They are only expected to work. The pay is set up so that they compete against one another. If someone knows something new and unique they use that as an advantage over their competitor, another employee. They don’t share,” said Peevy. “But the fact of the matter is, this will only take you so far. Ten years ago that worked, but not today. Cars are becoming much more complex. You have to share learning throughout the shop.” The new AMi courses are designed to help facilitate the learning process, according to Peevy. The company has created courses in conjunction with well-known names in the industry like Mike Anderson, who has designed some online courses around financial management. “He’s got a course, ‘understanding financial statements,’ that I really enjoyed. Business is my background and the course is a good refresher on how to read a balance statement,” said Peevy. Some of the other new course offerings include content from highly-respected industry professionals, such as Michael Graham, Frank LaViola, Jeremy O’Neal, Frank Terlep and others. “Mark Claypool does an IT course on email basics and cybersecurity as well as social marketing that’s really good,” said Peevy. The new online interface also makes it easy to access the content. There is a short video showing students how to set up their profile. The 30-hour customer service certification will touch on a range of subjects and skills including selling skills, relationship skills (both internal and external), phone skills, listening skills, dealing with a difficult customers, maintaining customer relations, gaining commitments from clients and feedback delivery. “There is a new generation coming. If they have a good work ethic, but maybe they have come straight out of high school, if you feel it’s worth investing, start them working toward the customer service for collision repair,” said Peevy. “If you’re an independent shop and you’re looking for a good way to retain good employee you can put them on career path. We’ve built these courses so that they are 20 to 30 minutes long. So someone can do them while they are at work.” 60 COLLISION REPAIR COLLISIONREPAIRMAG.COM
Also new is an emphasis on digital technology. The courses can be done online, which is an absolutely essential format these days. Since many of the courses are online they are accessible in Canada, but some courses are also available in a classroom format. “We have instructors in Canada who have their course materials and content approved for AMi credit. Bob Greenwood and the paint companies come to mind,” said Peevy. The AMi is also working on another impressive technology. Within the next year, the program will have a function that will determine how much the student knows based on the way the questions are completed. The program will determine if the person doing the course knows a lot about the subject or whether the person is a novice and needs extra help. “People seem to think that a good instructor in front of the room is the best way to go. But I think this will be better
than a live course. I’ve managed 400 instructors for 10 years. Classes are tricky because of the variation of experience of knowledge about what you’re talking about. In a class room you have to balance between the guy with 25 years of experience and the person with six months of experience,” said Peevy. “This way we get around that.” Peevy also notes that in the Learning Foundation for every $200,000 raised, “we’ll reduce the fees of online by ten percent.” This is a way of giving back to the industry he says. “It’s a different a business model for sure,” said Peevy. But it seems to be working. “It’s been an amazing week since we launched. We tried to have a soft launch, but when we put out the press release, we’ve had an amazing response since the middle of the week. We’ve had way more people signing up and taking courses than we thought,” said Peevy. It looks like the new AMi is off to a great start. For more information, please visit amionline.org.
I-CAR set to launch second level of Production Management Role
I
-CAR has announced the second level of coursework covering ProLevel 2 requirements of the Production Management Role curriculum. According to I-CAR, this new set of courses will enable those who manage shop production to improve their efficiencies, critical thinking and problem solving skills to ultimately drive more powerful and profitable business practices. The new curriculum is part of I-CAR’s Professional Development Program and builds on the ProLevel 1 curriculum for Production Management that was introduced in 2015. Shop owners, estimators, technicians and lead technicians can begin their ProLevel 2 training with no prerequisites. For many of the courses, they can enter the curriculum path at the point designated for their specific role in their shop, or they can take the courses after completing ProLevel 1. New this year, there are now fewer ProLevel 1 prerequisites. The ProLevel 2 curriculum is designed
to build upon the skills students learn through ProLevel 1 courses or through I-CAR-designated individual course entry points. The ProLevel 1 program focuses on creating a “Learning Culture” in the repair facility, establishing a sound production process, and developing the team and the business. The specific courses ensure the right people are assigned to each repair job, establishing and synchronizing workflow, problemsolving, strengthening quality and optimizing operations. In comparison, ProLevel 2 will expand on these foundational skills, bringing new perspectives to developing talent and business acumen, boosting efficiencies, and better understanding production management’s role in the financial success of the business. The ProLevel 2 curriculum is the result of extensive industry input and collaboration with production managers, shop owners and experts in the industry. For more information, please visit i-car.ca.
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INDUSTRY EVENT
Shellie Andrews (left) and Katie Henwood (right) accepting the WIN Cornerstone Award from Denise Caspersen (centre).
Michelle Sullivan of FinishMaster and 2016 Most Influential Women honouree.
CELEBRATING 10 YEARS
The Women’s Industry Network gives women a chance to support each other.
T
he Women’s Industry Network (WIN) has concluded its conference for 2016. One highlight was a gala event to celebrate this year’s recipient of the Most Influential Women (MIW) award. The WIN 10th Annual Educational Conference was held at Tampa Hilton Downtown in Tampa, Florida. The event provided a glimpse into the MIW program’s history, recognized past recipients of the award and announced the 2016 recipient. The Most Influential Women award is given annually to women in the collision repair industry who exemplify qualities of business and civic leadership, vision and commitment to excellence. This year’s recipient was Michelle Sullivan of FinishMaster. “The 2016 MIW nominees highlighted the geographic, functional and sector diversity of women who are influencing the collision repair industry today,” says Sandra Herron, owner of MiddlEdge, a third-party company contracted to interview nominees and select this year’s honoree, based on criteria set out by WIN’s Board of Directors. “I was inspired by each nominee’s industry involvement, professional accomplishments, mentoring of others and community service. Michelle’s record of creating value for companies, developing industry talent, and championing charitable causes in her community stood out as exemplary.” For the last 18 years, the MIW program has recognized 88 women for their professional accomplishments and
for going beyond requirements of their positions to give back to their communities. “The industry has experienced the positive impact of the women recognized as MIWs over the last 17 years,” says Cheryl Boswell, CFO at DCR Systems and a 2015 MIW Honoree. Boswell also emceed the event. “This award continues to recognize women who are not only passionate about their work, but also are active in mentoring others to help them advance within our industry.” Another major highlight of the event involved the only Canadian currently serving on the WIN board. Shellie Andrews of CSN-Dana’s Collision Center has been named as one of the winners of this year’s WIN Cornerstone Award. The award recognizes the efforts of a board member whose actions and unique contributions demonstrate their commitment to the WIN mission and vision, and set an example for others to follow. Andrews has been a part of WIN since its formation. She has been on the board since 2011 and served as treasurer for two terms. She has also served on just about every committee. “I’m extremely honoured and humbled. I never expected it,” she said in an interview with Collision Repair magazine. During the interview, Andrews confirmed that she believes very strongly in WIN’s mission. “I really do believe in the work WIN does, especially from the technician perspective. We always hear that there’s a technician shortage, but there’s this huge untapped resource. It’s
also a definite benefit for women who are already in the industry, knowing that’s there an organization to help and mentor them. I think it helps them not to feel so alone.” Two board members received the award this year. In addition to Andrews, Katie Henwood was also honoured during the WIN Educational Conference in Tampa . The award was presented by Denise Caspersen of National Autobody Parts Warehouse, who is also WIN’s Immediate Past Chair. “WIN is fortunate to have many diverse talents contributing to the success of this all-volunteer organization. This year’s WIN Cornerstone’s represent a longevity of altruism that reaches beyond just one task or one moment, but many that impact WIN’s future, ” says Caspersen. “Over the past six years Katie Henwood has been instrumental in the formulation, execution and success of WIN’s main event – the WIN Education Conference. For the many that know Katie, it’s her quiet, steady approach that brings strength and calm to WIN. Shellie Andrews, who began her service filling an open seat, serves without hesitation on nearly every WIN committee. Shellie takes on tasks that both fit her skill set and stretch her personal strength. WIN is built by many hands making light work and as WIN continues its growth and engagement, it’s the volunteers’ willingness to lend their time and talent that is the force of WIN’s future.” For more information, please visit womensindustrynetwork.com. AUGUST 2016 COLLISION REPAIR 63
APPRENTICESHIPS
STUDENTS FIRST Owner/operator Jack Tellian is a strong believer in encouraging the next generation.
A
Jack Tellian mentors the next generation at KKT Auto Collision. By Jeff Sanford
long-standing issue in the collision repair industry has been the lack of trained technicians. Instilling the knowledge of how to repair cars after an accident has to be a priority if body shops are going to continue to be viable. Arguably, few in the industry have done more to train the next generation of workers than Jack Tellian, owner and operator of Markhambased collision repair centre KKT Auto Collision. Tellian started in the auto body industry in 1972. He was just 13 when he began sweeping up shops. Now, more than 40 years later, he has developed a reputation as a stand-out trainer of young talent. KKT Auto Collision takes in two to four students a year from Markville Secondary School as part of the Ontario Youth Apprenticeship Program. Tellian has been recognized with awards for his ability to provide mentorship and training for students looking for guidance in the industry. His dedication to training is also clear in a wall of letters in his shop office. They are from former students thanking him for their experience at KKT, and for the skills and knowledge they gained from Tellian. “I take pride in helping the youth. I care about the students. They are our future. I treat them like they are my own kids,” said
Tellian in a recent interview with Collision Repair magazine. The important thing, says Tellian, is giving the kids real, hands-on experience in the shop when they are there. “I know that, at some places, the techs don’t dedicate enough time to training the kids. The techs are busy around the clock trying to get their own work done on time. So, the students just stand around and watch, or are tasked with sweeping the shop, and don’t get the proper handson experience for which they entered the apprenticeship program. No wonder kids don’t want to get into the industry,” says Tellian. “Everyone is so busy that they don’t think about the next generation of the trade. It’s not a sustainable way to operate, especially with the current shortage of properly trained and skilled people. Because the kids don’t get the experience and real training they are looking for, they become disappointed and stop pursuing a career in the industry. It’s not good. It’s not just about getting kids into shops and putting them on the floor to sweep up. You have to take the time to develop the next generation.” Giving the students proper hands-on training, by letting them do real jobs with informative supervision, has inspired many of the students that have come to KKT.
Many of the youth that Tellian has worked with have decided that they want to have a career in the industry, and have continued their education and apprenticeship in college. In September of 2006, York Region recognized his outstanding contribution to apprenticeship training. In 2012, he was named Best Supervisor of the Year at Markville Secondary School. “We have to have a strong work ethic in this industry. I try to encourage all of my apprentices to work hard and to always do their best, both in their careers and in their lives,” he says. “Another big issue with sustaining the future workforce of the industry is not enough financial incentive,” says Tellian. “Money is tight in this industry. It’s difficult for aspiring tradesmen to find apprenticeship positions because the shops don’t have enough money to hire them. There has to be more financial support for the shops to be able to take in apprentices.” Tellian continues to work at training the next generation at KKT Auto Collision, despite the obstacles. “If you know how to treat apprentices well, we will have no problem with having enough people that want to enter the industry,” he says. “Treat them as human beings. Teach them. Invest the time and effort. Plant a seed and watch it grow.”
Co-op students and apprentices performing various tasks around the shop. There’s more to the job than sweeping floors.
AUGUST 2016 COLLISION REPAIR 65
INDUSTRY EVENTS
CARSTAR MCSO Peter Smith.
From left: Dave Meery, CARSTAR Atlantic Canada Director; Johnny Kloeckes; Rob Kember, CARSTAR MSCO; and Zach Gallant, CARSTAR Summerside.
Hitting the Track CARSTAR and Axalta team up with Dale Earnhardt Jr. in Kansas City.
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It was an honour to carry the CARSTAR colours on the No. 88 Axalta car and represent the CARSTAR shop owners and thousands of employees across North America at Kansas this spring.
“
C
ARSTAR North America threw the business into high gear recently at Kansas Speedway, thanks to a joint promotion with CARSTAR’s new paint partner, Axalta Coating Systems. The No. 88 Axalta/CARSTAR Chevrolet SS, driven by NASCAR’s 13-time most popular driver, Dale Earnhardt Jr., raced under the lights in Kansas City, Kansas. He started 22nd and finished 15th in the paint scheme dubbed “Solar Flare”, which features the CARSTAR logo prominently on the car. “This was an incredible opportunity to further strengthen our relationship with various franchise partners across North America and showcase the CARSTAR value proposition to prospective new ones,” said Michael Macaluso, President of CARSTAR North America. “Although Dale Jr. did not take the checkered flag, we all had a winning experience with our partners at Axalta.” As part of the race weekend, Axalta hosted CARSTAR corporate team members, store owners and potential franchisees for dinner and a behind-the-scenes experience at the track. Guests had an opportunity to meet Dale Earnhardt Jr. and tour the NASCAR Sprint Cup garage, among other activities.
Dave Meery, CARSTAR Atlantic Canada Director, and Zach Gallant of CARSTAR Summerside.
Johnny Kloeckes, owner of CARSTAR Edmonton South and South East.
Dale Earnhardt Jr. takes his No. 88 Axalta/CARSTAR Chevrolet SS around the track at Kansas City. It was the first official NASCAR event for the newly-branded car.
-Jim Muse, Axalta’s North America Sales Director.
66 COLLISION REPAIR COLLISIONREPAIRMAG.COM
CARSTAR North America President Michael Macaluso.
INDUSTRY EVENTS
Colson Cole of CARSTAR and Jim Muse of Axalta.
Jose R. Costa, Group President of Driven Brands and CARSTAR MCSO Peter Chavez.
Ryan Isherwood of CARSTAR Duncan.
Lonnie and Dorritt LaPlante of CARSTAR Mission.
Dave Meery, CARSTAR Atlantic Canada Director and CARSTAR MCSO Rob Kember. AUGUST 2016 COLLISION REPAIR 67
JOBBER SPOTLIGHT
CELEBRATING
30 YEARS Crescent Industries has stayed the course through perseverance.
Zubair (Zuby) Siddiqui, President of Crescent Industries.
By Zeahaa Rehman
I
n May of 1986, a man named Zubair Siddiqui was trying to find a new job. Fast-forward 30 years and that man is now the President of Crescent Industries, one of the most well-known collision repair supply firms in the Greater Toronto Area. The firm celebrates its 30th anniversary this year. How exactly did this come about? “I was in the shoe and leather manufacturing business, but I was trying to get out of it,” says Siddiqui. “I met a guy in the US and he showed me an isocyanate hardener that
repair supplies at a competitive price. A well-known figure in the collision repair industry, Siddiqui is usually referred to by his nickname of “Zuby.” “Our goal is to provide the highest standard of products at very reasonable prices,” Siddiqui says. Crescent Industries currently boasts a 30,000 sq. ft. home base, located at 1495 Bonhill Road, in Mississauga. A fleet of delivery trucks supply its repair facility customers with paint, body and equipment supplies from brand names like BASF,
repair vehicles. “We carry products for every price range, but if we’re selling a ‘budget’ product, then we make it a practice to let the customer know exactly what they’re getting,” says Siddiqui. “And even at the low-end, they’re still getting the best product that can be found in the price range.” Siddiqui and his company have flourished for 30 years in the collision repair service industry, which is no small feat. Why does he still continue to persevere
Crescent Industries currently boasts a 30,000 sq. ft. home base in Mississauga. we could sell at half the price the big paint companies would.” It was exactly the sort of opportunity he had been looking for. Siddiqui, armed with isocyanate hardener and determination, made numerous calls to collision repair shops, which soon turned into sales. Since Zubair was making money, he decided to keep going. The rest, as they say, is history. Why ‘Crescent’ Industries? “My father told me to name it that,” Ziddiqui says. “I don’t know why!” Siddiqui, with his vision and drive, eventually transformed his isocyanate hardener sales into Crescent Industries, a multi-million-dollar business that thrives on providing high quality collision
DeVilbiss, Medallion, U-Pol, SEM and 3M to name a few. However, competitive pricing is not the only reason for Crescent Industries’ success; Siddiqui says excellent customer service is another reason customers keep coming back. Staff at Crescent Industries are well-informed and willing, educated and enthusiastic to answer the customer’s questions and provide them with the support they need. Customer service and stocking highquality products has lead to many loyal customers over the years. Crescent Industries even has staff working as far away as London, Ontario keeping body shops supplied with what they need to
68 COLLISION REPAIR COLLISIONREPAIRMAG.COM
and work hard? “Independence!” Siddiqui replies emphatically. In 30 years, Zubair “Zuby” Siddiqui has transformed his isocyanate hardener sales into a solid and long-standing part of the collision repair industry. One wonders what might be next for him and his company. “Who knows? I might be dead in the next two years and then I’ll get my son to take care of it for the next 20 to 30 years. But I might not even have a company,” he chuckles. “If Donald Trump becomes president, then I’m going back to India.” For more information on Crescent Industries, please visit crescentindustries.ca.
LEGENDS OF THE INDUSTRY
No-one Like Nana
Nana at a recent event, with her daughter, Gloria Mann, VP of Industry for Collision Repair magazine and family friend Jeanette Jones.
By Zeahaa Rehman
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lot of people i n t he i ndust r y k now Gloria Ma nn, Collision Repair magazine’s VP of Industry Relations. She’s often seen at industry events and is a frequent visitor to both repair facilities and vendor’s offices. No matter the location or event, Mann is often accompanied by Nana, her 104-year-old mother. It goes almost without saying that Nana has had a rich and varied life, including living in London during the Blitz, the heavy and frequent bombing raids during World War II. “She was telling me a story once, of when she taking shelter in the Underground, and subconciously I was picturing her as a little girl,” says Mike Davey, Editor of Collision Repair magazine. “It was after she mentioned having her children with her that my perspective suddenly shifted. She’s definitely seen a lot.” There’s at least one other thing you should know about her: she likes cigars. “I f irst met Na na when I was at a conference in Montreal and she brought me cigars during drinks for my husband,” says Joy Sk inner, President of CSNIndustrial Park Collision in Orillia. “I was just so impressed by her and how full of life she was.” Lorenzo D’Allessandro of CSN-427 Auto Collision shares a similar story. “It was at one of our events,” he recalls. “She came to the barbeque and I remember thinking of her as outgoing, very well put-together, and an extremely, incredibly beautiful individual!” Tony C a n a d e i s t he P re sid e nt of
Assured Automotive. He first met Nana some years ago and recollects that first meeting. “Gloria had come to watch my daughter Bianca’s soccer game and invited us back to her house for lunch,” says Canade. “I distinctly remember how eloquent and elegant Nana was; dressed impeccably, hair done and sitting at the kitchen island sharing a glass of wine with my wife Mary and I.” Na na’s daug hter is k now n for her personable demea nou r a nd ma k i ng friends whereever she goes. It’s incredibly obvious where she gets it from after you meet Nana. “She instantly makes you feel at ease and within minutes you get the feeling that you have known Nana for years,” says Canade. In 2010, Nana attended an Assured Automotive event to celebrate the company’s successful achievement of the Women’s Certified Award. Mississauga’s then-Mayor Hazel McCallion was also in attendance. At the time Madame Mayor was 89 years old and still four years from retiring as Mayor. Canade recounts a conversation he heard between Nana and Mayor McCallion at the event. “M a d a me M ayor s a id s ome t h i ng along the lines of being a little tired as she was getting older, to which Nana replied, ‘Nonsense, you’re still young! Just wait until you get to be my age,’” Canade recounts. “I looked at Madame Mayor and said: ‘With all due respect, Madame Mayor, I bet you don’t hear that every day.” Don Teevens is w it h Co-Auto Co-
Operative. Also a frequent visitor to various industry events, Teevens has met Nana on many occasions. “I look forward to seeing her when she comes to our events,” he says. “She always waits outside in the car and I make sure to bring her treats and chat with her. She’s a lot of fun. She comes to our golf tournaments regularly. She’s a great lady, and Gloria Mann is a super lady for spending so much time with her.” Teevens can describe Nana with just one word. It’s a word that isn’t used much, but those who know Nana would agree it describes her very well. “Royalty. I always associate her with the Queen,” says Teevens. “She’s always perfect and respectful and graceful.” There are many reasons Gloria Mann t ravels w it h Na na as she ma kes her rounds of the collision repair industry. Na na enjoy s it a nd t he compa ny is certainly nice on long trips. Being able to use the car pool lane is just a pleasant bonus, although Joy Skinner relates how her friend was once pulled over by the police while doing exactly that. “Gloria was driving in the the car pool lane, with Nana sitting beside her,“ says Skinner. “Gloria got stopped by the police because they thought that she had a mannequin beside her, just to be able to drive in the lane. And then they discovered that Nana was, in fact, a real person.” There’s no one more real than Nana. She’s lived an amazing life and has been quite happy to spend her most recent years wandering around the collision industry, slowly but surely becoming a legend. AUGUST 2016 COLLISION REPAIR 71
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Canadian Towing Equipment hosts Tailgate Party
C
anadian Towing Equipment held an open house at its Toronto location to celebrate the company’s 25th anniversary. The event served a dual purpose, allowing the company to thank its customers for their business over the years and to show off the store’s recently expanded Parts to Tow department. Canadian Towing Equipment has been serving the towing industry for 25 years from its headquarters in Cambridge, Ontario. The Toronto location first opened in 1996. The open house offered local towing professionals a chance to see the recently expanded facility. In addition, special deals were offered throughout the Parts to Tow department. Towing professionals in attendance also had a chance to preview Canadian Towing Equipment’s special 25th Anniversary Edition carrier, meet with a factor rep from well-known supplier Miller Industries to discuss the latest and greatest advancements in towing equipment and partake of mini-seminars covering service and maintenance tips and how
A staff member demonstrates a truck’s features at the open house event. Canadian Towing Equipment celebrated its 25th anniversary in May 2016.
to get the most out of tow trucks and other equipment. For more information, please visit cantow.ca.
New regs in Ontario for towing and storage now in effect New rules are now in effect if you repair, tow or store vehicles in Ontario. The new regulations under the Repair and Storage Liens Act (RSLA) officially took effect on July 1, 2016. Further regulations under RSLA will come into force starting January 1, 2017. The following new rules come into effect on July 1, 2016: - If a vehicle being stored is subject to a lien and is received from someone other than its owner or a person having the owner’s authority, then the storer must give notice to the owner and other interested parties of the lien in writing (e.g. secured parties who have registered their interest, such as lease and finance companies). - For vehicles registered in Ontario, the notice period is reduced from 60 days to 15 days after the day after the vehicle is received. If notice is not provided within 15 days, a storer’s lien is limited to the unpaid amount owing for that period. The 60-day notice period remains unchanged for out-of-province vehicles. - Storers now have the option to give written notice by fax or e-mail. Previously, notice had to be given personally, sent by certified or registered mail or via prepaid courier. These options continue to be available. - If no amount has been agreed upon for repair and storage costs, fair value may be determined by a court. There is a new list of discretionary factors a judge will be required to consider (such as fixed costs, variable costs, direct costs, indirect costs, profit and any other relevant factors). Some of the RSLA rules will relate to new regulations under the Consumer Protection Act (CPA), and come into effect on January 1, 2017.
The CPA changes will require towing and storage service providers to: - Get permission from a consumer or someone acting on behalf of the consumer (that is, in the event a consumer has been removed from the scene of an accident) before providing or charging for towing and storage services. - Record the name and contact information of the consumer or the person giving the authorization, along with the date and time of authorization. - Disclose certain information, in writing, such as the provider’s business name, contact information and address where the vehicle will be towed. - Make a current statement of rates available at all business premises, on a website (if one is maintained) in a form that can be reproduced, and provide a copy to any person upon request. - Provide an itemized invoice, listing services provided, the cost for each service and the total cost before demanding or receiving payment. - Accept credit card payments from consumers. - Provide a consumer (or someone acting on their behalf) with access to the towed vehicle, at no charge, so that they may remove personal property between 8 a.m. and 5 p.m. on business days. - Tow and storage providers will be prohibited from recommending repair and storage facilities, legal service providers or health care service providers, unless a consumer or a person acting on their behalf specifically asks, or the provider offers to make a recommendation and that person agrees.
For advertising inquiries, please contact Mike Davey at 905-549-0454 or advertising@collisionrepairmag.com. AUGUST AUGUST 2013 2016 COLLISION REPAIR 75
CONTENTS Recycling News....................77 - 83
news resource
Tire Take Back 2016, OARA Scholarship winners, Grants in Gear program returns and much more.
Seventh annual Tire Take helps communities and helps fulfill dreams OARA ANNOUNCES SCHOLARSHIP WINNERS
Early’s Auto Parts in Alliston, Ontario definitely made anyone dropping off tires feel welcome! Turn the page for more photos from Tire Take Back 2016!
Tire Take Back has officially concluded for another year, but its positive impacts will continue throughout the rest of 2016 and beyond. This year marks the seventh annual Tire Take Back event, a joint effort of Ontario Automotive Recyclers Association (OARA) and Ontario Tire Stewardship (OTS), in conjunction with the Ontario Federation of Agriculture (OFA). In addition to cleaning up unsightly and unhealthy discarded tires, the annual event raises funds for The Sunshine Foundation of Canada. To date, the campaign has raised over $940,000 for The Sunshine Foundation of Canada, helping to fulfill dreams for Sunshine Kids through the Individual
Dreams and DreamLift programs. Ontario residents dropped off their used tires for free at participating auto recyclers during business hours across the province from May 24 to June 4. Every single tire dropped off generated a donation to The Sunshine Foundation. Over 60 OARA member auto recyclers signed on to help collect tires during the 2016 event. Gloria Mann of Collision Repair magazine visited a few of these recyclers during the event and you can see some photos from her visits on the following pages. For more information on Tire Take Back 2016, please visit rethinktires.ca. Continued on page 78.
The Board of Directors of the Ontario Automotive Recyclers Association (OARA) is pleased to announce the recipients of the post-secondary education funding for 2016/2017. The Scholarship Program generates funds from a number of sources, all culminating at the OARA Conference. The annual “cat drive,” where member recyclers are encouraged to donate catalytic converters, raised $4,673.87. The casino night and silent auctions at the OARA Conference raised $11,901.08. Two other major funding sources were the Veolia used oil rebate, which netted $7,894.09 in donations, and draws at major automotive auction houses raised a further $2,670. The OARA Employee Scholarship Program started in 2010. Since that time, OARA has provided scholarships to 191 recipients for a total of $190,500. Scholarship applicants must plan to pursue a full-time post-secondary education program in an accredited college, university or school providing trade, business or technical programs, or enroll in a recognized apprentice program with the Ministry of Training, Colleges and Universities. Applicants must also have achieved at least a 65 percent grade point average, or equivalent, in their previous educational program. In addition, a parent or guardian of the Continued on page 80.
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Seventh annual Tire ... continued from page 77. LEFT: At McGregor’s Auto Parts in St. Thomas, Ontario. Over 60 OARA member recyclers participated in Tire take Back 2016. BELOW LEFT: Staff at Erin Auto Recyclers in Erin, Ontario and a “Sunshine Family.” Tire Take Back directly benefits the Sunshine Foundation, which helps children struggling with terminal or lifethreatening illnesses. BELOW RIGHT: It’s free to drop off tires during Tire Take Back. The tires are then properly recycled, often into durable consumer goods.
ABOVE: Tires can be recycled into many consumer products, including an environmentally friendly rubber mulch.
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OARA Scholarship ... continued from page 77.
applicant must be a current employee of a Direct Member of the Ontario Automotive Recyclers Association (OARA) with a hire date at least one year prior to April 30 of the application year. Children of owners or those owning stock in the business are not eligible.
This year’s recipients are listed below. • • • • • • • • • • • • • • •
Molly Ghanam, A&L Auto Recyclers Amanda McCaskie, ABA Auto Parts Wilson Nixon, Andy’s Auto Wreckers Cody Corbin, Arnprior/Ottawa Auto Parts Logan Naudi, Cambridge Auto Parts Olivia Johnson, Carcone’s Auto Recycling Aaron Taylor, Carcone’s Auto Recycling Christopher Taylor, Carcone’s Auto Recycling Lauren Wyatt, Corey’s Auto Wrecker Bryan Thomas, Dom’s Auto Parts Emily Raite, Doug’s Auto Parts Makayla Churchill, Formula Auto Wreckers Thomas Arseneau, Hank’s Auto Wreckers Dustin Boehm, Hank’s Auto Wreckers Jessie Seili, Hank’s Auto Wreckers
• • • • • • • • • • • • • • • •
Matthew White, Hotch’s Auto Parts Nicholas Polinski, Miller’s Auto Recycling Erin Collison, Miller’s Auto Recycling Hannah Polinski, Miller’s Auto Recycling Spencer Gullion, Miller’s Auto Recycling Alysha Gullion, Miller’s Auto Recycling Christina Whitmore, Nuhn’s Auto Supply Morgan Hughes, P&G Auto Parts Caitlyn Elton, Pic N Save Auto Parts Jesse Fitzgerald, Standard Auto Wreckers Victoria Lam, Standard Auto Wreckers Jessica Tymchyshyn, T&T Auto Supply Ashley Tymchyshyn, T&T Auto Supply Meghan Behm, Valley Automotive Kristen Noack, Valley Automotive Samantha Cooney-Grills, Woodbeck Auto Parts
ARPAC golf tournament raises funds for Lighthouse Children and Families Quebec’s automotive recycling association, ARPAC, has announced the successful completion of its annual golf tournament. The 19th Annual ARPAC Foundation Golf Tournament was held at the Golf Club of the Island of Montreal. As usual when it comes to industry golf tournaments, there was more to the event than just hitting the links and having a good time. There’s a charitable component to the tournament as well, with a different charity chosen each year to receive the funds raised. This year, the receiving charity was Lighthouse Childrens and Families. Founded in 1999, Lighthouse Children and Families contributes to the well-
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being of children whose lives are threatened by illnesses that require complex treatment. The organization also provides respite and support to their families. To carry out its mission, Lighthouse welcomes children at Maison André-Gratton, Quebec’s only pediatric palliative care home, which offers both respite stays and end-of-life care. It also offers in-home respite care and a family support program. All services are free of charge. Thanks to ARPAC, and its members and partners, the tournament raised a total of $3,250 for the charity.
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Scout Environmental honours Golden Switch Award recipients Switch Out, Canada’s national automotive mercury switch recovery program, would like to take the opportunity to recognize the outstanding and continued efforts of the automotive recyclers that participate in the program. Over 950 businesses from across Canada have recovered mercury switches from end-of-life vehicles (ELVs) since the start of the program. What’s equally incredible is that 136 of these participants have sent switches through Switch Out every year since the start of the national program in 2008. All of those 136 are Golden Switch Award recipients. The Golden Switch Award celebrates five years of consecutive participation in the program. The continued efforts of these automotive recyclers demonstrates the commitment of the automotive recycling industry to operating in an environmentally responsible manner. The impact of this work has been insignificant. Over 700,000 switches and 600 kg of mercury have been recovered because of the work of automotive recyclers in Canada. As Andrew MacDonald from Maritime Auto Parts describes, “Switch Out is an essential part of our CAREC program, without which we wouldn’t
The team at LKQ Lecavalier in Ste-Sophie, Quebec with their Golden Switch Award. The award celebrates five consecutive years of active participation in the Switch Out program.
have been able to develop the strong relationships we have with OEMs or government regulators. We’re also really proud of the impact that Maritime Auto Parts, and the auto recycling industry in general has made by participating in Switch Out.” Please accept our thanks, and keep checking ELVs for mercury switches. And remember: Every switch counts! For more information on the Switch Out program, please visit switchout.ca.
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HOLLANDER - EBAY TECHNOLOGY SUMMIT TO FOCUS ON ECOMMERCE FOR AUTO RECYCLERS
Hollander and eBay Motors are teaming up to present the Hollander eBay Technology Summit, taking place in Minneapolis. Hollander says it will provide eCommerce ideas, solutions, best practices and training to help recyclers be more productive and profitable. “This is the right event at the right time, given the challenges our industry is facing,” says Mary Moberg, Marketing Director at
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Hollander. “For success both today and into the future, we need to embrace eCommerce and new technologies while tapping into the collective wisdom of the brightest minds in the industry. The Hollander – eBay Technology Summit is the ideal forum for making it happen.” Moberg also says Summit 2016 promises outstanding value for yard owners and their employees alike, with a focus on both eCommerce as well as practical product training. The event features a Welcome Reception followed by two days of educational sessions, presentations, keynote speeches and ample opportunities for networking with other automotive recyclers. The first day, the eBay / eCommerce Summit, will focus on eCommerce best practices, tips and success strategies using eBay and Hollander eCommerce products. Attendees can choose from a variety of workshops. Highlights include building a cost-effective, profitable online presence to using eBay tools and programs to increase sales to leveraging the power of the Hollander Interchange. Presenters will include successful recyclers and experts from eBay and Hollander. The second day, the Hollander Technology Training Summit, will feature interactive training sessions across three tracks—system management, inventory and eCommerce—to help yard owners and employees sharpen their skills using Hollander’s solutions to manage inventory, run systems effectively, efficiently sell parts online and more. Participants can choose to attend the first, second or both days of the conference. Summit 2016 will also showcase several k e y n o t e s p e a k e r s , i n c l u d i n g J o n A c u ff , bestselling author of five books and voted one of the best speakers of 2015 by the Meeting & Convention Planners association. Also speaking will be Sree Menon, Head of Parts and Accessories at eBay Motors and Tanvir Arfi, Global Head of SMR & Parts Platform SVP Solera Holdings. Attendees can preview new technologies at the aptly-named Hollander’s Technology Test Drive Center. They can try out new software and other tools for running their yards more efficiently and cost effectively. Hollander’s IT experts will be on hand to answer technical questions and provide technology advice. Registration for the summit is now open at info. hollandersolutions.com/summit.
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ARAAC ANNUAL MEETING INCLUDES TRADE SHOW FOR THE FIRST TIME The Automotive Recyclers Association of Atlantic Canada (ARAAC) has concluded its annual meeting for 2016. Previously, the association had met twice a year in the spring and fall. This year the decision was made to move to one larger meeting. Judging by attendance, it seems like ARAAC made the right move. Also new at this year’s meeting was a trade show component, featuring exhibits from Burlington Business Forms/BCAP, Power-DB by SolexD, Monidex Distibution, Hollander, Car-Part, Progi, Scout Environmental and CCC Pinnacle Yard Management. Glen Vatcher of Vatcher’s Used Auto Parts is stepping down from his position on the ARAAC board and Devon Field from A-1 Automotive in St. John’s will take his place. Vatcher will continue as a member of the association, and his business will host the 2017 Yard Tour at next year’s annual meeting. Otherwise the ARAAC Board remains intact with Andrew MacDonald as President, Dalbert Livingstone as Vice President, Shelley Roy as Treasurer, Heather Langille as Secretary, Derek Covey as Past President, and Ron Bastarache as Director. Among the highlights of the ARAAC meeting was the co-location of the Automotive Recyclers of Canada (ARC) Board meeting and their participation in the overall event. In addition, new ARAAC Code
of Ethics plaques were distributed to attending members. Audits to the Canadian Auto Recyclers Environmental Code (CAREC) are currently underway and Platinum, Gold, Silver or Bronze status will be announced in the fall. Board Members from the national association, Automotive Recyclers of Canada (ARC), provided insight in to the issues and opportunities in their regions for a fascinating snapshot of auto recycling across Canada. Members also received updates from Hollander on its continuing work to bring accurate and complete interchange data to automotive recycles. In addition, members were updated on the latest from Monidex, which continues to grow in Atlantic Canada, adding new SKUs on an almost constant basis. One of the highlights of the ARAAC meetings is the open house and yard tour, a rare opportunity for automotive recyclers to really see inside the business of their peers. This year’s tour was hosted by Maritime Auto Parts. The next ARAAC meeting is tentatively set for November 19, 2016 in Truro, Nova Scotia. This is a one-day Board Meeting and strategic planning session but all ARAAC members are invited to attend and participate.
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REPAIRHELP Consumers buy from us, but need you for installation. By David Gold
T
he core business of the professional auto recycler is, of course, the sale of recycled auto parts. Often our parts are sold to cons umers who increasingly can’t perform the necessary installation of the parts themselves. The procurement of cost effective alternative parts is genuinely appealing to many car owners. Therefore a qualified collision repair centre or automotive service provider is required to be involved in the repair process. Every day consumers purchase parts from us in our respective local markets. With the parts becoming more complex, the ave rage consumer requires assistance to fix their vehicle. Recyclers want to recommend repair centres that will look after our mutual customers. We like to view collision repair centres as valua ble allies in the
promote each other in a mutually beneficial way? Of course it would, and we need to be able to find a way for us to view each other as the valuable busi ness partners that we really are. Our associations play an important role in working together and promoting good busi ness. We are stronger together. At the same time, the level of respect between collision repair centres and auto recyclers has to be ele vated in a significant way so as to mitigate issues. Repairers and auto recyclers alike have to make sure that any misunderstandings are dealt with expeditiously and rectified with a resolve to move forward. There is no question that we both want to resolve issues right away. When one bad deal gets blown out of proportion and business issues are taken personally, we all lose.
THE LEVEL OF RESPECT BETWEEN COLLISION REPAIRERS AND RECYCLERS HAS TO BE ELEVATED. repair process and utilize the benefits and features of local collision repair centres to assist us in the sales process. We all win when vehicles are being repaired. The consumer doesn’t want his or her vehicle written off and sent for recycling when it is perfectly capable of being roadworthy for a few more years. We are seeing vehicles on the road lasting longer than ever these days. Many consumers put great care into their vehicles and do regular preventative maintenance, have installed new brakes recently or perhaps have purchased new tires. As such they do not want to have their vehicle totalled due to a fender bender. Just as recyclers need a good mix of vehicles being written off and repaired, so do collision repair shops. That’s why a business referral option is beneficial to both parties. Auto recyclers are not in competition with collision repairers. We know that our recycled parts have been invaluable in saving vehicles from being written off, which is an important balance that will sustain both our respective business interests. To that end, wouldn’t it make sense for us to work together to embrace recycled parts and 84 COLLISION REPAIR COLLISIONREPAIRMAG.COM
It is our responsibility as leaders in the industry to find solutions to issues that arise and deal with one another at a high level. Continual improvements will yield profound results. Many of our best customers and suppliers have had deals that didn’t go as planned, but they were worked through and resolved and closer business relationships have occurred as a result. It is incumbent upon us all to make sure that we repair any broken relationships, just like it is our responsibility to repair broken vehicles. Recyclers are a great source of cost savings and alternative parts and cons umers and all st a keholders ack now le dge t hat , just as we acknowledge the high degree of professionalism it takes to run a successful collision facility. Our goal is to grow together and serve the best interests of our collective customers. CRM David Gold of Standard Auto Wreckers is a founding member of Fenix Parts and holds the title of President for Canadian Operations. Locations in Canada include Toronto, Port Hope and Ottawa. He can be reached at 416-286-8686.
FINANCIAL INSIGHT
THEHYPE When can we really expect to see AVs on the road? ADVERTISER INDEX COMPANY
PAGE
3M..............................................4 AADCO Auto Parts...................80 AkzoNobel..................................6 Ally Business Coaching...........22 ARSLAN Automotive.................47 Assured Automotive.................30 Auto Quip Canada......................8 Automotive Recyclers...............82 Axalta................................67,OBC Bodyshop 911............................19 Canadian Hail Repair..................34 Carcone’s Auto Recycling........78 CARSTAR...................................18 Cardinal Couriers......................15 Car-O-Liner................................21 Car-Part.com.............................76 CollisionCommunity.com.........64 Collision Solutions Network......58 Collision 360............................. 40 Color Compass.........................24 D&E Distributors........................14 Dominion Sure Seal....................28 DV Air Systems.....................44,69 Enviro Database Solutions.......16 Fix Auto .....................................54 Formula Honda.........................62 Garmat.......................................23 Global Finishing Solutions........12 Hollander....................................85 Impact Auto Auctions...............79 Krown.........................................25 LKQ............................................81 Martech Services.......................27 Mercedes-Benz........................33 Mitchell International............72,73 Monidex .....................................61 Monster Auto Wreckers.............80 Ontario College of Trades...............31 Peter Kwasny Inc......................53 Polyvance.................................50 PPG..........................................2,3 Pro Spot International..............70 Prochilo Brothers......................26 Saint-Gobain Abrasives............17 Sherwin-Williams.......................13 Spanesi......................................57 Stark Auto Sales.......................74 Steck Manufacturing.................10 Symach......................................11 Toyota...................................42,43 Thorold Auto Parts..................83 Valspar.......................................87 Wurth Canada.............................9
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By Jeff Sanford
I
t’s time to wade through the muddy waters to get a sense of when it is collision repair executives can bet on seeing real autonomous vehicles (AVs) on the road. E s t i m at e s for w h e n AV s ar r i v e extends from 2020 to 2050, but no one really knows for sure. That said, don’t assume AVs are a complete fantasy. Betting against technology is never a good idea. Remember those in the early 1980s who scoffed at the idea
behind the wheel and let the vehicle do the driving” is predicted to arrive after 2020. Tesla’s Autopilot comes close, but recent reports indicate that it’s far from perfect. After that, “somewhere between 2020 and 2025,” so-called Level 4 automation—where “vehicles can perform all driving functions and monitor roadway conditions for an entire trip”—arrives. Finally, “between 2025 and 2030” fully self-driving cars, Level 5 automation, arrives.
LEGISLATIVE AND MARKET ISSUES NEED TO BE WORKED OUT. that anyone would ever want to have a personal computer in their home. It seems smart to assume the benefits of AVs will ultimately drive adoption. A report released by global investment bank Morgan Stanley last year estimates that AVs could provide “$1.3 trillion in annual savings to the US economy ... with global savings estimated at over $5.6 trillion.” Mark Rosekind, head of the US-based National Highway Traffic Safety Administration recently suggested at a conference that the number of deaths from auto accidents is like, “a 747 crashing every week for a year.” The desire to reduce that body count will be the primary reason AVs are developed and adopted. So, when do the robot cars actually arrive on roads in real numbers? This is still very much a debatable question. Level 2 automation—cars that are “c a p a b l e o f c o n t r o l l i n g f o r w a r d movement and longitudinal or transverse movement in select situations .... but still need a driver to take control if necessary to avoid a crash”—is here now. Level 2 automation includes lane change assist and automatic braking. Level 3 automation, where drivers “sit
That might seem optimistic. There are many who suggest that consumer acceptance and legislative issue will push the arrival of AVs out much further than the timetable discussed above. Some estimates suggest it won’t be until 2030 and 2040 that a significant portion of the fleet will be self-driving. There are others who think adoption will happen later than that, if at all. The most pessimistic assume that the technological barriers will prove to be too high, that AVs will never really “take over” and will only find use in niche areas of the market. The hype around AVs is running high right now, but there is good reason to think actual adoption will be a bit slower. Those in the AV industry say it’s going to take at least a decade to generate the digital maps needed to allow true AVs. Building sensors into existing highway infrastructure will take even longer. Legislative and market issues need to be worked out. Something to keep in mind as the hype around AVs boils over. 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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