SPOTLIGHT: INFRARED CURING COMES OF AGE
SCAN OR BE DAMNED! Why you need to scan, pre- and post-repair.
ROBOT REVOLUTION
CSN-CARS Collision gives us an inside look at their newly-installed Symach system.
WORK IN PROGRESS Minimize mistakes by ‘right-sizing’ your operation.
FAMILY FIRST
Vito Attivissimo brings a family-friendly attitude to his Fix Auto locations in Quebec.
PLUS
Complete report on Canada’s biggest collision event, I-CAR presents trends and tech, SGI’s Paul McIntyre on industry overview, and much, much more!!! Volume 15, Number 2
l April 2016
l
$7.95
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Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
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CONTENTS
ON THE COVER 39 FAMILY PASSION Vito Attivissimo’s Fix Auto stores support his family, and his family supports the business.
Volume 15 Issue 2, April 2016
FEATURES 42 EXECUTIVE VISION SGI’s Paul McIntyre on OEM certification and advanced materials. 54 WORK IN PROGRESS Capping the number of vehicles in your shop can improve production. 57 STORAGE REGS Make sure you’re ready for new storage regulations with this handy guide. 61 INFRARED SPOTLIGHT It’s invisible, but not mysterious, and the technology has advanced.
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The inside scoop on CCIF Cars & Tech Showcase, Canada’s largest ever collision event.
NEWS 08 COLLISION REPAIR 70 TOWING & RECOVERY 73 RECYCLING NEWS
DEPARTMENTS 06 PUBLISHER’S PAGE by Darryl Simmons In Tom we trust.
51
CSN-CARS Collision opens its doors for a look at the new Fixline system by Symach.
65
Mike Anderson’s simple message: always scan.
ON THE COVER: Vito Attivissimo of Fix Auto Cartierville and Fix Auto Laval West. PHOTOGRAPHY BY EVE RICHARD.
YOUR ONLINE SOURCE
Canada’s collision repair information resource. New articles and top news stories daily. Visit www.collisionrepairmag.com.
HAVE YOUR SAY. We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to editor@collisionrepairmag.com.
30 POINT BLANK by Sam Piercy Folding money. 32 PRAIRIE VIEW by Chelsea Stebner Extra mile. 34 TRAINING by Andrew Shepherd Choosing your provider. 36 WHO’S DRIVING? by Jay Perry Your top job. 76 RECYCLING by David Gold Complexity. 78 FINANCIAL INSIGHT by Jeff Sanford Consolidation trends.
APRIL 2016 COLLISION REPAIR 05
PUBLISHER’S PAGE
INDUSTRYIMAGE A salute to Tom Bissonnette. By Darryl Simmons
T
his issue we welcome Chelsea Stebner, who is taking over the Prairie View column from our good friend and long-time contributor Tom Bissonnette. I really should have introduced her in the last issue when Tom said he was stepping back from things for a while to practice his golf game (much needed) and spend more quality time with his wonderful wife Barb. I didn’t at that time, because it’s hard to imagine our magazine without Tom’s insight. In fact it’s hard to imagine the entire industry without Tom’s involvement, so I subconsciously didn’t accept that he was really leaving. In Tom’s final column for us last issue, he mentioned that there were three goals he wanted to achieve before retiring. Two of those goals were to own a successful collision facility and to give his key employees a chance to have a great life by becoming business owners. He’s certainly achieved both of those. I think he’s achieved his third goal as well. It was “to make a difference locally, provincially and nationally to help the industry become better.” I first met Tom more than a decade ago and was immediately impressed by his honesty and forthrightness. I was not alone in noticing these qualities. Tom’s a well-known figure in the industry, in part because he’s the sort of guy who likes to visit other people’s facilities when he’s nominally on vacation. You may have had him pay you a visit at some point. Tom’s also deeply involved in industry initiatives like Haiti Arise, which is helping to build a technical school in Haiti, and he’s been a constant attendee at the Canadian Collision Industry Forum (CCIF) for pretty much its entire history. He really believes in raising up the industry as a whole. His dedication was recognized by his peers with his appointment to Chair of the CCIF, a position now occupied by Joe Carvalho. It was during Tom’s tenure that the CCIF was brought under the wing of AIA Canada and subsequently the direction of Leanne Jefferies. This was a turning point for the “new” CCIF, so if you like what you have seen (and I don’t know anyone who
PUBLISHER DARRYL SIMMONS (905) 370-0101 publisher@collisionrepairmag.com EDITORIAL DIRECTOR MIKE DAVEY (905) 549 0454 editor@collisionrepairmag.com
wasn’t completely impressed with the latest meeting in Toronto - see more starting on page 45) then you have Tom to thank as well. Among his other accomplishments is his work with youth in his hometown. Never one to hog the spotlight, Tom stayed in the background but his force and presence were always present. The new management team and owners at Parr Auto Body in Saskatoon share the feeling I’m sure.
ART DIRECTOR SYLVIA LISI (905) 370 0101 sylvia@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 PUBLISHER’S ASSISTANT AMANDA BELANGER amanda@mediamatters.ca COLUMNISTS & CONTRIBUTORS DAVID GOLD, DYLAN O’HAGAN, JAY PERRY, SAM PIERCEY, ANDREW SHEPHERD, CHELSEA STEBNER
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.
In 2009 we ran a cover story on Tom and his team at Parr Auto Body. Our art director put together a mock up cover that ran the headline “In Tom We Trust.” We ended up going with another headline, but that one sure did fit. In Tom, I do trust ... and I know I am not alone. So welcome, Chelsea. I’m sure our readers will love reading your column. And I know Tom’s influence will always be there. Oh, and Tom, if you’re reading this, when you make your way to Ontario we can practice your golf game ... after we fix the backhoe. CRM
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APRIL 2016 COLLISION REPAIR 7
THE FRONT END
PEOPLE ON THE MOVE Fix Auto has appointed Jean Charles Dupuis to the positions of Senior VP and Chief Operations Officer. Dupuis has over 20 years of experience in Jean various strategic executive Charles Dupuis. positions, including as Chief Information Officer and Vice President Information Technology at MASS Insurance Brokers, Dale Parizeau Morris Mackenzie and TD MelocheMonnex, as well as President for Dutech Consultants. Steve Leal, President and CEO of Fix Auto Canada, announced the addition of Jean Charles Dupuis to Fix Auto’s Executive Leadership team. Dupuis will be responsible for overseeing Fix Auto Canada’s business, as it goes through an aggressive growth strategy. “I am excited to join a dynamic team and be a part of the Fix Auto success story,” says Dupuis. A statement from Fix Auto says Dupuis brings a vast array of business management, process optimization and development skills to the company. “Jean Charles’ leadership and proven efficiency in project delivery are valuable assets that are sure to help fuel Fix Auto’s growth. We are thrilled to have him on board to help steer the company towards new heights in operational excellence,” says Leal. Sherwin-Williams Automotive Finishes has appointed Bruce Redwood as Regional Sales Manager, Central Canada. The announcement was made by Bob Leibel, Sherwin-Williams Automotive Finishes Director of Sales - Canada. In his new position, Bruce Redwood will be responsible Redwood. for leading the Central Canada employees to consistently grow sales and profits through the company’s dedicated automotive branches and distribution partnerships in the marketplace. “Bruce’s background and experience have him well prepared for this role,” says Leibel. “Bruce comes to this position with more than 30 years of extensive PBE sales and operational experience including farreaching refinish market background prior to his joining the company.” Redwood was promoted from his recent assignment, that of Sherwin-Williams’ Vehicle Refinish Sales Representative in the Greater Toronto Area-West.
Denise Kingstrom has been appointed North America Distribution Director for BASF Automotive Refinish. The appointment was announced by Vice President Paul Whittleston. “In line with our strategy to grow market s h a re , D e n i s e a n d h e r team are accountable to execute our North America distribution strategy,” said Whittleston. “This includes Denise enhancing the compelling Kingstrom. value proposition distributors gain when partnering with BASF and growing their sales. Strategic leadership of ColorSource, the BASF single line distributor program, and of the National Distribution Accounts are also part of her responsibilities.” Kingstrom began her career with BASF in 1999 with assignments in New Jersey and Mexico. In 2003, she joined the Coatings OEM team as a Field Technical Sales Representative. In 2010, Kingstrom joined the Refinish business leading both Key and Strategic Account teams. She is a graduate of Michigan State University with a Bachelor of Arts and Masters of Business Administration. The Women’s Industry Network (WIN) has announced this year’s recipient of the Most Influential Women award for 2016. After reviewing the nominations, one inspirational industry leader was selected to receive the Michelle honour: Michelle Sullivan, Sullivan. Regional Vice President for FinishMaster. The Most Influential Women award recognizes women who have enriched the collision repair industry with their leadership, vision, and commitment to excellence. The Most Influential Women program’s charter aligns with W I N ’s m i s s i o n t o “enhance the role Michelle Sullivan. of women in the i n d u s t r y. ” S i n c e 1999, the program has recognized 88 women for both their professional accomplishments and for going beyond requirements.
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APRIL 2016 COLLISION REPAIR 9
REGIONAL NEWS
British Columbia
CSN-ELITE celebrates 50th anniversary CSN-ELITE Body Shop of North Vancouver is celebrating a huge milestone this year—50 years in business. “It’s a little sketchy as to when exactly the shop opened,” says Wade Bartok, the current owner and operator. “We had a fire in 1977 that wiped out our records, and so a lot of the history has been lost. But as far as we can tell, it was June of 1966.” Over the next five decades the business generated deep roots in the North Vancouver community. “We didn’t want the milestone to pass quietly. It’s our 50th anniversary. I wanted to do something, so we had a big party,” says Bartok. The party was definitely big, with over 300 guests at the bash. A popular local band with a Grateful Dead-type following, IConIX, played. Two of the band members are also technicians who work at CSNELITE. Former employees showed up. So did employees and owners of dealerships and suppliers. “It was amazing. We were worried at one point we were going to have too many
CSN-ELITE Body Shop has been in business since 1966.
people,” says Bartok. “It was a real shaker. But we wanted to celebrate the history.” The business still operates out of the store they moved into in 1974, but there have been plenty of changes. There is an express shop a couple of blocks away now. The dead-end gravel road they used to be on is now paved and opened up, while the nearby stream is an expressway. “It used to be deserted around here, but
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now the sprawl has caught up,” says Bartok. Today they see the fourth generations of customers coming in to the business. “We used to do a lot of restoration work. And we’ll have someone come in who says, ‘Your Dad painted this in 1982.’ It’s funny to see those same people after all these years,” he says. For more information, please visit elitebodyshop.ca.
APRIL 2016 COLLISION REPAIR 11
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Alberta
Fix Auto expands: Cardston, Lacombe, Cold Lake Three new Fix Auto locations have joined the network in Alberta recently: Fix Auto Cardston, Fix Auto Cold Lake and Fix Auto Lacombe. “Starting off the year with such significant development is great news for the Fix Auto network,” says Peter Polito, GM of Fix Auto Western Canada. Fix Auto Cardston is owned and operated by David Nay. Fix Auto Cold Lake is owned and operated by Louis Lessard. Fix Auto Lacombe is owned and operated by Jerry Pala.
ABOVE: Some of the team from Fix Auto Lacombe. BELOW: Fix Auto Cardston and Fix Auto Cold Lake
Desire for better customer service drives Intact’s new Calgary storefront Intact Insurance has opened a new service centre in Calgary that provides a new level of customer engagement. In an interview with Collision Repair magazine, Mike Van Elsberg, Deputy Senior VP of Claims, Western Division for Intact, noted that the decision to open the location was driven by a desire to improve customer service. “It’s a customer service initiative,” said Van Elsberg. “It’s something we heard from customers. They told us that all the time it takes to bring the car in, get a rental, that’s time they don’t want to spend.” A statement from Intact says the company will open four new Service Centres in urban areas across Canada. “It’s a storefront type of arrangement. You make an appointment. You bring the vehicle to the store. We greet you at the door and then bring the vehicle into the service bay at the back of the shop for an inspection. We have a discussion about what needs to be done, and then we shuttle the vehicle to a collision repair
facility. The customer leaves in a rental that we have right on-site,” says Van Elsberg. According to Van Elsberg, the collision centres the cars will be delivered to are all from the company’s direct repair partner (DRP) program. “We have our network. We have aligned a number of shops within that network to complete the repairs to our customers’ vehicles,” said Van Elsberg. “We talked to some of the shops in the network and explained what we were doing. This isn’t for all customers. But for those who want it, it’s there.” The Calgary store is the first one to open. According to Van Elsberg, Intact hopes similar service centres will open in Ottawa and Toronto by the end of the year, with Montreal to follow shortly after that. “We are making things easier for customers after an automobile accident,” he said. “This process is simpler, more efficient and could save customers time. Customers will drive their repaired cars sooner.”
REGIONAL NEWS
Saskatchewan Manitoba SGI BRINGS THE FOCUS TO DRIVER, PASSENGER SAFETY Occupant safety was the province-wide traffic safety spotlight for the month of March. Police were looking for people not wearing a seatbelt, wearing it improperly, or not having children properly secured (based on the child’s age, height and weight) in the vehicle.
In 2014 in Saskatchewan, 23 people died and 185 were injured because they weren’t properly restrained in a vehicle. “The responsibility to ensure everyone under 16 is properly restrained in the vehicle falls on the driver, and it’s a job they need to take seriously,” said Earl Cameron, Vice
A rash of vandalized vehicles in the River Heights section of Winnipeg prompted MPI to eliminate the deductible for some customers on vandalism claims.
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President of the Auto Fund. “Wearing a seatbelt won’t prevent a crash, but it can save your life if you do crash.” Saskatchewan General Insurance (SGI), the provincial auto insurer, recommends these tips that you can pass on to your customers to help keep them safe: - Buckle up every time you get in a vehicle and ensure all passengers are properly restrained too. - The seatbelt should fit securely across the middle of the shoulder and across the hips. - Keep babies and kids secure in the appropriate car/booster seat as long as the seat allows. Consult the owner’s manual for guidelines. - Ensure you have the right fit. Visit an SGI car seat clinic or book an appointment with a car seat technician your community. - Keep children 12 and under safe in the back seat in proper restraints based on age, height and weight. - Adjust the vehicle’s head rest so the top is level with the top of the head, to help prevent whiplash. There are also some special considerations when it comes to children, especially those still in car or booster seats. The correct car seat for the child’s size and weight as well as proper installation goes a long way in ensuring the child’s safety. Child car seats are designed based on four categories of sizing: - Rear-facing: 1.8 to 16 kg (4 to 35 lb.) - Forward-facing: 9 to 30 kg (22 to 65 lb.) - Booster seat: Over 18 kg (Over 40 lb.) - Seatbelt: Over 36 kg (Over 80 lb.) Weights may vary from car seat to car seat. The child car seat manufacturer’s instructions will advise if the seat is suitable for a particular child. Recommendations for transitioning to a regular seat belt from a booster seat have changed significantly. Can the child sit comfortably with his or her back against the vehicles’ seat back? Do the child’s knees bend comfortably at the edge of the vehicle’s seat? Is the lap portion of the seatbelt as low as possible, touching the child’s thighs? Does the shoulder portion of the seatbelt cross the middle of the shoulder? Can the child stay comfortably seated like this for the whole trip? If the answer to any of these questions is “no” then a booster seat is required.
Manitoba WINNIPEG-BASED BOYD EXPANDS IN US AND CANADA The Winnipeg-based Boyd Group has announced the opening of a collision repair centre in Conyers, Georgia, a community outside of Atlanta. The centre is located close to the central business district of Conyers and Interstate 20. The new facility will operate under the Gerber Collision & Glass brand name. “This new location increases our large market presence in the Atlanta area and adds service capability in the region east of the city,” says Tim O’Day, President and COO of the Boyd Group’s US operations. “This will help us serve new customers and our insurance partners, while introducing Conyers to the Gerber brand of professional and friendly service.” The company has also announced an expansion in Punta Gorda, Florida. Punta Gorda is about 23 miles north of Fort Myers and about a two-hour drive south of Tampa. The new collision centre is located on US Highway 41 linking Tampa and Miami and is close to the I-75 Interstate Highway. It will operate under the Gerber Collision & Glass trade name. “We are pleased to add this new location as it complements our locations in Fort Myers and Tampa and adds to our position as a leading provider of collision repair services in Florida, with over 50 locations,” says Tim O’Day, President and COO of the Boyd Group’s
US operations. “We look forward to serving new customers in Punta Gorda, better assisting our insurance partners, and growing to become the collision repair provider of choice in southwest Florida.” The Boyd Group has also announced the acquisition and opening of two collision repair centres on Vancouver Island in BC. The facilities previously operated as Hi-Tech Collision in the town of Sidney and Keating Collision in the community of Keating. Both are well-located in proximity to Highway 17 which connects to the Island Ferry Terminal, Victoria International Airport and the City of Victoria. “We are excited to add these locations, which have been serving their communities for more than 15 years, to our network,” says Eric Danberg, President of the Boyd Group’s Canadian operations. “With four locations on Vancouver Island for a total of 11 in British Columbia, Boyd is a leading provider of collision repair services in the province and continues to make progress towards its goal of growing single locations by six to ten percent in 2016.” The Boyd Group operates locations in five Canadian provinces as Boyd Autobody & Glass, as well as in 19 US states under the trade name Gerber Collision & Glass. The company is also a major retail auto glass operator in the U.S. with locations across 30 US states. For more information on the company, please visit boydgroup.com.
REGIONAL NEWS
Ontario
CARSTAR Southbank opens appraisal centre and mobile glass service CARSTAR Canada has announced the opening of CARSTAR Southbank Appraisal, located at 1255 Johnston Road in Ottawa, Ontario. CARSTAR Southbank Appraisal is located in the Southbank Chrysler Dodge Jeep Ram dealership. According to a statement from CARSTAR, the drive-in appraisal centre offers a quick and easy encounter, while the on-site representative delivers professional and knowledgeable communications. “Our goal is to keep our customers happy by offering a multitude of services delivered by highly skilled and attentive employees,” says Guy Parker, Dealer Principal for Southbank Chrysler Dodge Jeep Ram and CARSTAR franchise partner. The business has also announced its glass service is going mobile with the addition of CARSTAR Southbank Glass. The new glass
facility is also located within the Southbank Chrysler Dodge Jeep Ram dealership. The facility offers CARSTAR Southbank Appraisal franchise glass services both partners. From left: Guy Parker, Dealer Principal; Louise Michaud, Collision on location and via Manager and Paul Monette, Glass Manager. a mobile unit. In addition, CARSTAR Southbank Glass has rental cars available on-site.
Napanee high school brings repairers and students together Keystone Automotive held a clinic recently in Napanee, Ontario that should make anyone interested in the future of the collision repair industry sit up and take notice. Craig Sindall is the auto body instructor at Napanee District Secondary School. The vendor-led clinic took place in his classroom. It also isn’t the first event industryfocused event his school has hosted.
“We’ve hosted two I-CAR events after school hours, which my students had the opportunity to attend and really enjoyed,” says Sindall. Perry Clark works with the local Keystone outlet. He points out that holding events like this at the school has benefits for both collision facility owners and the students. “The students get to learn about the latest advances in our industry, as well as meeting local shop owners,” Clark says. “In turn, the shop owners get to come out and meet the students who might be working for them some day.” In this case they also benefitted from exposure to new products. Dan Dominato of Keystone Paint Circuit and Precision Marketing conducted the SEM demo. “We focused on a new OEM refinish system for rad supports, parts, cut-ins and jambs that utilizes aerosol technology to eliminate mixing paint and cleaning spray guns,” he says. “It enables technicians to refinish on the shop floor or at prep stations, decreasing cycle time and reducing cost.” All across the country, high school auto body programs are falling by the wayside. The program at Napanee District Secondary School, and others like it, should be supported by the industry. Luckily, members of the industry are already showing their support. “I’d like to thank Gord Wry from Axalta for a huge donation of materials,” says Sindall. “Support from companies like Axalta and Keystone, and people like Gord and Perry, helps to bring an outside connection to the industry into my classroom. It makes a huge difference for the students in my classes and hopefully the future tradespeople we so urgently require in the industry.”
Representatives of local collision facilities watch Dan Dominato of Keystone Paint Circuit and Precision Marketing demonstrate SEM’s OEM Refinish System at a clinic held at Napanee District Secondary School. The school has also hosted I-CAR events, and plans are underway to host more clinics in the future.
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Quebec CARROSSIER PROCOLOR SUPPORTS NEXT GENERATION RECRUITMENT Melissa Murphy, Communications & Marketing Coordinator, and Mary Jayn de Villers, Director of Communications and Marketing for Carrossier ProColor at the Salon Expert à l’emploi.
MTB Transit Solutions is Canada’s leader in repairing and refurbishing transit buses & highway coaches. Founded in 1973, we operate a multi-facility property in Milton, Ontario.
LOOKING FOR NEW TEAM MEMBERS
BODY & COLLISION REPAIR TECHNICIAN
Reporting to the Maintenance Supervisor, the Body & Collision Repair Technician is responsible for performing high-quality body repairs.
Position Duties: The Carrossier ProColor network recently stepped up to help attract the next generation by participating in the Salon Expert à l’emploi, an employment event organized by the students of the Centre d’études professionnelles of Saint-Jérôme. Students visited the Salon Expert à l’emploi with the aim of finding a job or an internship related to their studies. This year the exhibition hosted over 500 students, some of whom are part of the Auto Body DEP program. During the exhibition, Carrossier ProColor took the opportunity to promote its online job application form by inviting students to register in the central database of candidates. The form can also be used by students seeking an internship to complete their studies. “For job seekers it is a very useful tool because it enables them to display their candidacy with 155 collision centres across Quebec. The form is available on our website but also on our mobile app,” says Mary Jayn de Villers, Director of Communications and Marketing at Carrossier ProColor. “All the collision centres in our network have access to this database and can refer to it at all times.” Carrossier ProColor puts several tools in place to assist their members in their search for skilled candidates. In addition to the online application form, Carrossier ProColor invites its collision centres to display their job openings in this same section and all jobs are shared on the Carrossier ProColor Facebook page. “The skilled labour shortage in our industry is a major concern for us and our members who must deal with this reality,” says de Villers. “We must be proactive and that starts by being present for students who seek to work in the industry. Being on-site at events such as this one allows us to promote the Carrossier ProColor
network as well as its career opportunities and demonstrates our commitment to get involved with the next generation.” Of course, it isn’t enough to attract students to collision repair. Efforts need to be made to retain them as well. As one of the sponsors of Project Mustang, Carrossier ProColor has helped to donate $25,000 to organizations that work towards student retention or student aid. The money was raised through a raffle held at the Montreal International Auto Show. The prize was a restored 1967 Mustang. Carrossier ProColor was a partner of the 1967 Mustang Project. The project itself involved much more than simply raffling off the car. First, we need to get into a bit of background on the genesis of the project. The Guide de l’auto is Quebec’s highest selling annual publication, with approximately one guide sold for each five new cars sold in Quebec. The publication celebrates its 50th anniversary this year and to mark this occasion, the Guide acquired a convertible 1967 Mustang and launched the project of the same name. The students of École des métiers de l’équipement motorisé were tasked with restoring the car to its former glory. Supervised by qualified instructors, the students completely dismantled, reassembled and refurbished the vehicle to showroom condition. The project had another result, in addition to the car itself. It has enabled the creation of a new course in automotive restoration that was specifically designed around the 1967 Mustang project. “Carrossier ProColor is extremely proud to be associated with this important project,” says de Villers, “It’s a very challenging and rewarding project for students. In addition, it helps promote career opportunities in the autobody industry.”
• Repair transit bus & highway coach bodies.
Technical Qualifications:
• 4+ years related experience. • Knowledge and experience with automotive plastics, putties, fillers, hardeners/metals & composite materials. • Ability to analyze problems and provide expertise in repairs.
MECHANIC
Reporting to the Mechanical Supervisor, the Mechanic is responsible for diagnosing and carrying out repairs. This includes repairs, maintenance activities, inspection of equipment and mechanical assessments.
Position Duties:
• Detect, troubleshoot and inspect equipment. • Adjust, repair or replace equipment or defective machinery parts while testing for proper performance.
Technical Qualifications:
• Valid Ontario Government certificate of qualification and a valid license as a Truck and Coach Technician and/or Automotive Service Technician. • 3+ years practical experience with heavy-duty vehicle preventative maintenance and repair. • Knowledge of relevant legislation, health and safety act and standards for equipment maintenance procedures. • Ability to analyze vehicle/equipment problems including the use of electronic/diagnostic equipment. • Ability to compile reports, parts requirements documentation and forms according to fleet maintenance and other procedures.
Please email resumes to:
hr1@m-t-b.com
Only selected candidates will be contacted.
REGIONAL NEWS
Atlantic Manitoba CSN EXPANDS WITH CSN-COUNTY COLLISION CSN Collision Centres has announced its newest location, CSN–County Collision in Mahone Bay, Nova Scotia. The facility is owned and operated by Michelle Nickerson. Nickerson spent 27 years working in the newspaper industry before taking a leap of faith and switching her focus to collision
repair. She was given an amazing opportunity to bring vibrancy and life to the former County Collision in Mahone Bay. After a few months of working on the business, she fell in love with the industry and the staff, and saw an opportunity to purchase the business and make it her own.
A rash of vandalized vehicles in the River Heights section of Winnipeg prompted MPI to eliminate the deductible for some customers on vandalism claims.
“One thing I enjoy about this business is that it is so dynamic,” says Nickerson. “I love seeing the different vehicle transformations happen right in front of my eyes. I watch as the vehicles come in after their accidents, I examine the extent of the damage that the vehicles have and then I observe the technicians as they diligently work on the vehicles to bring them back to pre-accident condition. It’s so exciting!” According to Nickerson, her staff “goes above and beyond to maintain excellent customer relations with customers while their vehicles are being repaired and after they are repaired. We also have an extremely friendly and professional working relationship with our suppliers in the area that helps us get our repairs done efficiently and effectively.” Nickerson says industry support is a big reason why she is proud to have joined CSN Collision Centres. “CSN is a helping hand! We have seen a tremendous amount of support in our marketplace and the industry after joining the CSN network. This helps us ensure that our customers are connecting with us more easily and that we are doing what we are supposed to be doing for them,” says Nickerson.
PEI has lowest LOR in Canada R e p a i re r s i n P r i n c e E d w a rd I s l a n d might be the fastest in Canada at turning work around, based on data f r o m E n t e r p r i s e R e n t - A - C a r. T h e company has recently released its fourth quarter length of replacement rental (LOR) data. Enterprises’ length of rental data is sometimes considered a proxy for repair time. It’s gathered by Enterprise’s Automated Rental Management System (ARMS) which tracks the length of time a replacement vehicle is rented to collision centre customers. In general, the data shows an average decrease across Canada. Prince Edward Island had the lowest average time, with just 8.2 days. This matches the province’s LOR data from Q4 2014.
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APRIL 2016 COLLISION REPAIR 19
NEWS
Assessing Canada’s P&C sector in the era of radically low interest rates By Jeff Sanford
In February, Aviva Canada announced it would buy up the assets of RBC’s general insurance arm. The deal was a relatively small one for the insurance industry, with about $582 million changing hands to seal the deal. Around 575 RBC Insurance employees will become part of Aviva Canada’s operation. A 15-year distribution deal that will see Aviva products sold to RBC Insurance customers was also part of the transaction. The move was unsurprising to many who follow the insurance sector closely. Several years ago RBC made some noise about plans to lobby the government to allow it to sell insurance out of its bank branches. “Syngeries” would be achieved according to RBC executives. RBC even set up insurance offices right next to bank branches in some communities. But the regulatory shift never happened. With radically and weirdly low interest rates making it ever tougher to eke out a profit, it made sense for RBC to offer up the book of business to another company. The deal between Aviva and RBC went ahead. But what does this deal say about some of the wider trends and issues in the insurance industry? In a recent report, credit rating agency A.M. Best noted that consolidation through exactly the type of deal struck between RBC and Aviva could be expected as a series of market issues put pressure on Canadian P&C issuers to become more efficient and bulk on assets. What are the market issues insurers are dealing with? One of the biggest trends hanging over the insurance industry right now are the extremely low interest rates that have surprised almost everyone. Today interest rates are effectively zero. This fact has great impact on the insurance industry. Last year the Organisation for Economic Co-operation and Development (OECD) released a report warning that “the current low interest rate environment poses a significant risk for the long-term financial viability of pension funds and insurance companies.” As the report states, over time as bonds become due, high-yielding bonds are replaced by low-yielding bonds in the portfolios of insurance companies. The longer rates stay low, the lower the return to insurance companies. The OECD Business and Finance Outlook warned that one of the main concerns of regulators is that insurance companies might become involved in a “search for yield.” That is, in order to generate the necessary returns and keep the promises made to policyholders when interest rate were higher, insurance companies will be tempted
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to invest in riskier ventures. According to the OECD report, “If interest rates remain low into the future, funds and insurers may find their assets insufficient to meet their promises, unless they adjust their pension or payment promises ... [insurers] may need to offer lower guaranteed returns on new contracts to reduce liabilities and, in extreme cases, renegotiate current terms.” Bankruptcies among insurers are very rare. Union of Canada Life Insurance was wound up in 2012 after 148 years of business. That was the first failure of an insurance company since the early 1990s when three companies failed: Les Coopérants, Sovereign Life and Confederation Life. In each of these cases, low interest rates were said to have played a part. So no wonder some of Canada’s largest insurance companies have been taking measures to handle the low interest rates. When it comes to the property and casualty (P&C) market, Canadian insurers have, so far, managed the new low rate environment. In a report released this past fall, A.M. Best suggested, “Canada’s Profits Endure Despite Lower Interest Rates, Regulatory Changes and Consolidation.” The report notes that “despite challenging market conditions, characterized by slowing economic growth and further interest rate declines,” the company was maintaining its stable
NEWS
ratings outlooks on Canadian P&C insurers. Although the companies were dealing with a large amount of “uncertainty” in several lines of business, to their credit, the Canadian P&C companies have managed to grow their businesses through this period of volatility. According to A.M. Best, the Canadian P&C market remains “resilient.” Companies in the sector have stayed ahead of trouble by investing in new underwriting technology and enhanced risk management practices. Risk-adjusted capitalization levels have been maintained, trouble averted. All in all, according to A.M. Best, “The Canadian P&C market, along with the many individual companies participating in the market, has demonstrated resiliency in addressing ongoing headwinds ... it is A.M. Best’s expectation that this industry will continue to respond appropriately to these ongoing and emerging challenges.” One method for managing the heavy weather will be the ongoing trend toward demutualization. The long-awaited final regulations outlining the process of demutualization for Canadian P&C insurers were released this past July. The new financial structure will help. Another issue for auto insurers in Ontario has been the Auto Insurance Cost and Rate Reduction Strategy, which was the controversial promise made by the current Liberal government to reduce auto insurance rates by 15 percent. According to the A.M. Best report this caused a significant contraction in personal accident premiums and “exerted significant pressure on the industry’s automobile loss ratio in Ontario.” The market for auto insurance was expected to “remain challenging” for insurers. The report goes on to say that the organization responsible for overseeing the insurance sector, the Financial Services Commission of Ontario (FSCO), “appears to be
taking a reasonable approach to rate reductions, given the upward trajectory in auto loss ratios.” That is, FSCO has understood the challenge insurance companies face in such a low rate world. The 15 percent reduction in auto premiums has not come to pass in Ontario. The Liberal government has had to step away from that promise. Rates have come down by about 6.5 percent instead. But as the challenges remain, it is no surprise that P&C insurers continue to seek out ways to maintain the stability. Another key method P&C insurers have utilized to manage adverse conditions has been consolidation. By buying up smaller companies, more business is spread across the corporate infrastructure. This reduces costs. An active market remains for consolidation in the Canadian P&C sector. An A.M. Best report on consolidation in the Canadian P&C sector suggests the “active M&A market for Canadian P&C insurers shows no sign of slowing ... Ongoing performance pressures in Canada’s property and casualty market, combined with the need for scale and long-term strategic positioning continue to drive consolidation in the sector,” according to the report. In 2014, Canada’s top 10 P&C companies wrote 66.2 percent of the market’s direct premiums, compared with 56 percent in 2007. Long story short, the big guys are getting bigger and taking up more market share. At that time, A.M. Best said that as the industry moves into the third quarter of 2015, it “anxiously awaits the next merger that is likely around the corner. While time will tell when the next big deal goes from a mere discussion to a full-blown announcement, there are a myriad of factors that could lead to continued activity over the near- to mid-term.” It seems that the next deal showed up when Aviva absorbed the RBC assets in late January.
Police data shows decline of collisions in Ontario Crashes on Ontario’s highways fell by over 6,000 in 2015 compared to 2014, according to a report released by the Ontario Provincial Police (OPP). The OPP responded to 69,469 road collisions in 2015, compared to 75,644 in 2014. Most of the accidents occurred between passenger vehicles. Breaking down the data, collisions involving large commercial transport trucks decreased to 5,373 collisions in 2015, compared to 6,307 in 2014. Motorcycle accidents increased to 838 in 2015 compared to 803 in 2014. There were fewer accidents in 2015, but the crashes that did occur had a higher toll in human lives. According to the data,
299 people were killed in road collisions in OPP jurisdiction in 2015, compared to 288 in 2014. The “Big Four” causes of road fatalities—alcohol/drugs, inattentive, speed, no seat belt—were all down in 2015. In particular, last year marks the lowest number of alcohol/drug related deaths in more than 10 years and the lowest number of inattentive-related deaths since Ontario introduced distracted driving laws in 2009. Tragically, last year there were more road crashes in which more than one life was lost. In 2015, there were four times as many crashes in which three people died and sadly, one of the collisions claimed the lives of four people.
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IBIS Preview: Bradley Mewes on widespread automotive consolidation By Jeff Sanford
Collision repair experts from around the globe are set to descend on Barcelona, Spain this spring for IBIS 2016. Collision Repair magazine is the exclusive Canadian Media Partner for the event that gathers together the key influencers and thought leaders in collision repair. Brad Mewes is scheduled to present on consolidation. Mewes is an industry analyst with Supplement, based in Irvine, California. A self-described “business geek,” the MBA-holding Mewes does corporate finance, management consulting and strategy work. “It’s a big deal to be asked to speak at this event,” said Mewes in an interview with Collision Repair magazine. He is appearing in the same slot that Rex Green of BB&T Capital Markets did at IBIS 2015. At that time Green used the phrase “The Four Horsemen of Consolidation” to describe the four banner companies rapidly consolidating the US collision repair space: Boyd, Caliber, ABRA and Service King. At that time Green predicted the four big consolidators would increase their share of collision repair revenue from 10 to 65 percent of revenue over 10 years. Mewes’ presentation will bring attendees up to date on what’s gone on in the twelve months since. “Looking at the US market, the consolidation story has changed,” says Mewes. “The Big Four continue to aggressively acquire multistore operators and single store locations. However, we’re seeing some changes in the way they’re growing.” Mewes says the Big Four are beginning to open brownfield and greenfield locations. “This method of expansion is taking off. Over the long-term it presents a better return on investment. You have a longer time horizon to realize return. You don’t need to pay a premium to a competitor to get a shop. It’s a longer term strategy,” says Mewes. Mewes also mentions the amount of consolidation taking off in Australia. “‘Taking off’....that’s an understatement. Australia ... it makes North America look slow,” says Mewes. He mentions the publicly-traded chain AMA Group. “They’re on a tear. The head of the company, Ray Malone, is just an incredibly sharp individual.
Bradley Mewes will present at IBIS on trends in consolidation.
He’s taken a page out of what’s going on in the rest of the world. But they’re doing a great job. They’ve done in a compressed time what has been going on in North America for years,” says Mewes. Mewes notes that the consolidation in the collision sector is also driving events in related areas. “Look at the jobber and paint distribution sector. As we’re seeing their customer base consolidate, we’re seeing consolidation in the jobber business. We’re seeing a greater need for a nationwide trading partner,” says Mewes. “These trends are reverberating through the entire sector.” Consolidation is even taking off in the dealership space. “Consolidation on the dealership side is widespread,” says Mewes. He notes the acquisition this past spring by Warren Buffett of Van Tuyl Group, the fifth largest privately held dealership group in the United States. That company provide the base for a company that will be known as Berkshire Automotive and is expected to acquire dealerships across the continent. That the world’s “great investor” is in the space is some kind of confirmation of the excitement around the auto industry right now. “Warren Buffett has been been very open that he bought Van Tuyl with the very explicit goal of consolidating the dealership space. Automotive in general is a big, hot investment play right now,” says Mewes.
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NEWS
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NEWS
Uni-Select continues acquisition drive with three more deals By Mike Davey
Uni-Select has been on something of an acquisition drive over the last year. Reports in the early days of 2016 showed yet more acquisitions in the works or recently completed. Uni-Select has officially acquired all the shares of Pièces d’autos M.A.G. and has entered into an agreement to purchase the assets of Jean Talon Auto Parts and Centre de Pièces Gagnon. The Jean Talon Auto and Pièces Gagnon acquisition is subject to customary closing conditions and are expected to close in early April. The deals significantly increase Uni-Select’s reach in its home province of Quebec. Pièces d’autos M.A.G. has been in business since 2007. Its team has served the market for over eight years from one location in Sherbrooke, Quebec. The 11 parts experts who contributed to building its reputation and position in the market will join UniSelect. Jean Talon Auto operates six locations in Montreal and has been in business for over 30 years. The 56 people employed by Jean Talon Auto will also join the Uni-Select team after the deal closes. Pièces Gagnon specializes in heavy duty and industrial parts. Its team of 16 professionals will also join Uni-Select upon conclusion of the transaction. “We are proud to add M.A.G. to the Uni-Select family in the Sherbrooke area and to have these long-time Uni-Select customers, Jean Talon Auto and Pièces Gagnon, continue to serve the Greater Montreal Area,” said Gary O’Connor, President and Chief Operating Officer, Automotive Canada for Uni-Select.
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As mentioned previously, the company has been on something of an acquisition drive recently, snapping up distributors in Ontario (B.H. McFarlane Automotive in Hamburg and T.N. Discovery Auto Collision in Toronto) and British Columbia (Colwood-Langford Auto Supply) as well as acquiring Refinish Solutions through its subsidiary FinishMaster. The acquisitions haven’t gone unnoticed in the business world. The company was the second best performing stock on the Toronto Stock Exchange in 2015, providing a return of 128.17 percent. Mark Brown, writing for Canadian Business, noted that the stock would have performed even better if it had been on the exchange earlier in the year: “If not for its late addition to the index, Uni-Select—a distributor of automotive parts and paint products—would have been the runaway winner on the index with a 128.2 percent return,” Brown writes. “The company sold off the assets of its Uni-Select USA business to an affiliate of Icahn Enterprises L.P. for $340 million and put that money into several new acquisitions of its own.” The latest acquisitions are part and parcel of the ones we’ve already seen, adding to Uni-Select’s reach. “We are very pleased to add these terrific businesses and teams to our network of corporate stores in the important urban Montreal and Sherbrooke markets,” said Henry Buckley, President and Chief Executive Officer of Uni-Select. For more information, please visit uniselect.com.
NEWS
IBIS digital magazine offers global view of collision repair The world is more connected today than at any point in history. Keeping up with advances around the globe can be daunting, but a new publication is helping repairers and other members of the automotive claims economy keep up with worldwide developments. Published by the International Bodyshop Industry Symposium (IBIS), iBusiness is a digital publication, released bimonthly and supported by IBIS conference partners. Collision Repair magazine is the exclusive Canadian Media Partner for IBIS. The latest issue of iBusiness is now available for download. This new edition includes market updates from Media Partners around the globe, an examination of how tech companies are threatening traditional automakers and a look inside 3M’s Innovation Centre. Other features include a look at how Germany is backing the electric car market, skills in the modern industry and a trip to the McLaren Technology Centre. This issue also features and interview with David Smith, VP Supply Chain/Procurement at Caliber Collision, who will be speaking at this year’s IBIS Summit. To d o w n l o a d t h e latest issue, please visit ibisworldwide.com/ ibusiness-the-digitalibis-magazine.
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NEWS
Inside View: Michael Macaluso and Jose Costa on the new CARSTAR North America A massive merger, two cultures coming together and a remarkably swift series of moves at the parent company have resulted in Canadian executive, Michael Macaluso, heading up the CARSTAR organization across North America. Dan Young, President of CARSTAR US, stepped down recently and left the company. Jose Costa, who heads up the paint and collision segment at CARSTAR’s parent company, Driven Brands, swiftly called on Macaluso to take the reins of the combined operation. The appointment will be on a sixmonth “trial basis,” though it is assumed that Macaluso will continue as head of the merged CARSTAR units after that time period. Some have speculated that the merger between CARSTAR Canada and the US is happening at a faster pace than had been planned. Driven Brands had planned to formally combine its two recent acquisition within 12 to 24 months. Now the merger moves to its next level. CARSTAR US was purchased by Driven Brands in October and CARSTAR Canada was acquired in December. This means a total of more than 450 CARSTAR locations across North America and a combined revenue of $800 million in sales. It seems that Driven Brand execs felt the CARSTAR Canada field structure for insurance, development and operations could be useful down south. CARSTAR Canada has a field structure for its insurance-facing operations that allows a CARSTAR representative to work with an insurer counterpart at the local, middle-management and corporate level—this organizational structure is said to have been appealing to the Driven Brand execs. It is also thought that US shops might also benefit from CARSTAR Canada’s advanced insurer-, franchisee-, customer-facing IT platforms, and appraisal-only satellite facilities. These facilities, the so-called “CARSTAR Express” model, have extended the reach of the brand to locations that would otherwise be offlimits to a full-scale, industrial-zoned collision centres and helped to attract coveted affluent female consumers. “The Canadian industry is much more advanced than the US,” says Costa. “CARSTAR’s Canadian business is frequently as much as five to 10 years ahead of America’s. There’s many, many things we’ll bring over from Canada into the US and vice versa.” So perhaps recent events are not so mysterious. It was a natural fit for Costa
to bring Macaluso into the top spot at CARSTAR. The posting is another feather in the hat for the young but impressively accomplished executive. Macaluso has received the 2015 Canadian Italian Business Professionals Young Executive of the Year Award in 2015; as well as the AIA Young Executive of the Year and is a Top 40 under 40 business award recipient for the city of Hamilton. But Macaluso is quick to point out that nothing is ever accomplished by one individual and it takes an entire team to achieve greatness–and the Canadian and US CARSTAR teams are world class, according to Macaluso. Costa was glad to enthuse about Macaluso in a phone call with Collision Repair magazine. “When we bought the two CARSTAR businesses we analyzed both management teams for quite some time. We originally identified Mike as the top leader in both CARSTAR Canada and the US. Our plan was to give him some time to understand the companies,” says Costa. “Our plan was never to have Young go away. He is a fabulous leader and someone really experienced in the auto industry. But when he left, this accelerated the plan that was already in place. Driven Brands is a company that likes to promote based on performance and Mike has that. He has a record of permanence and experience running CARSTAR Canada. He has a vast range of experience in different areas, including insurance. He is very well-respected. And last but not least, here at Driven Brands, we like smart, young aggressive executives. That what we like to promote.” The Canadian CARSTAR team is no doubt excited to see their leader advancing to the top spot. Now he gets to run one of the biggest North American collision repair chains. Macaluso says he’s looking forward to the new challenge. “I am absolutely excited, energized and ready to roll,” says Macaluso. “We’re already working on ways to make these two teams into the best outfit in the industry, with the clear mandate of helping our franchise partners succeed and delivering an impeccable customer experience to our insurance partners. It’s already happening. What we’ll be doing is really a continuation of what we’ve already been doing. We’ve been working with CARSTAR US and CARSTAR Canada to bring them together. What we’re going to be doing is a continuation of that.”
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Michael Macaluso will serve as President of CARSTAR in both Canada and the US.
Macaluso is going to have his hands full in the months ahead. Costa explained he’d like to see the new CARSTAR North America double in size in the next five years to over 1,000 locations. He’d also like to see increased profitability. “We must increase franchise profitability, which is a challenge across the globe for all of us in this business. We have clear strategies to help our franchise partners, and of course striking the balance with our insurance partners. With better procurement we can bring value,” says Costa. Macaluso is going to be busy over the next five years, clearly. Nevertheless the hometown hero of Hamilton, Ontario, sounds on-point, focused and excited. “There are some things to do in terms of understanding the nuances of the differences in the markets. We have to pay close attention to the unique nature of the US market. We’ll be engaged and make a business out of the US and Canadian operations. Where it’s possible to merge operations, in vendor partners and insurance, we’ll do that and where it makes sense to keep things separate, we will. It’s already happening and it’s exciting,” says Macaluso. The merger will consolidate some executive roles but leave three areas with their separate leaders, as detailed below: - Operations: Chief Operations Officer Dean Fisher and Vice President Colson Cole will keep their posts in America and Canada, respectively. - Insurance: Vice Presidents Arlo Johnson (US) and John Harvey (Canada). - Marketing: Marketing Directors Hannah Ross (US) and Chris Moore (Canada). For more information on CARSTAR, please visit carstar.ca. For more information on Driven Brands, please visit drivenbrands.com.
INDUSTRY IMAGE
The Search for
CANADA’S
TOP TECH
Is one of your techs the very best in Canada? We’re going to give you the chance to find out!
We’re looking for the best of the best.
Y
our staff have been through it all and your techs are at the top of their game. They’ve learned their trade and you’ve done your part by helping them to upgrade their skills, and you have stayed ahead of the next game-changing automotive technology. But is one of them the very best in the whole country? We’re on a crusade to find out! We’re on a mission to find Canada’s Top Tech. The search starts in September 2016. We’ll tell you how to enter so keep watching for details in Collision Repair magazine, Bodyworx Professional magazine and collisionrepairmag.com as well as Facebook, Twitter and Google+. We don’t want to give it all away too soon, but we can tell you that at the very least, the Top Tech winner will be profiled on the cover of Bodyworx Professional magazine, with articles
announcing the win in Bodyworx Professional, Collision Repair magazine, Collision Quebec, Collision Repair Daily E-zine and all social media. The winner will be the rock star of the collision repair and automotive industry in Canada. We’ll be revealing the rest of the prize package over the coming months. Watch for more updates in upcoming issues of Collision Repair magazine, Bodyworx Professional, bodyworxmag.com and on collisionrepairmag.com! We’ll officially kick off the search in September 2016, but over the coming months we’ll fill you in on how technicians can enter, the criteria that will be used for evaluation and who will be examining the entries. Keep an eye on our publications and social media channels for more information!
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SPONSORED CONTENT
Claims Management Solutions. Your Way.
TECHKNOWLEDGE Technology provides the challenge ... and the solution.
T
he information technology age has revolutionized the world in a generation but arguably no single part of it, except maybe communication, has witnessed as much change as the automobile. Within several decades, computerization has transformed not only how cars operate, but also how consumers view them. Currently, approximately 5 percent of a vehicle’s value is technology. This is expected to rise to between 40 and 60 percent in the next 10 years, creating tremendous opportunities for Canadian technology companies. Audi, Mercedes Benz, BMW and car industry suppliers Bosch and Continental are all currently working on technologies for autonomous or semi-autonomous cars. The average car today can have between 25 and 50 c e n t r a l p r o c e s s i n g u n i t s ( C P Us ) controlling these functions and more, often networked but sometimes operating independently. The level of sophistication is likely to rise as self-driving vehicles move closer to mass production. L o ok i ng i nto t h e f utu re, t h e bi g question is, how will collision repairers adapt to this changing landscape? “Big data” and the “Internet of things” have made more than just a cameo appearance in our industry. Not only is Big Data being disseminated regarding driving habits, but also when a car is in an accident, first responders, insurance companies and even OEMs are notified immediately. It won’t be long before a vehicle in an accident will estimate its own damage. And it will be up to the collision
By Domenic Ieraci
repair community to ensure accuracy. In spite of much evolution, I believe the collision repair industr y to be quite resilient and open to change. The Canadian Collision Industry Forum (CCIF) has certainly provided the industry with a tremendous platform for insurers and collision repairers to discuss how to best respond to these changes and embrace them as an opportunity. However, keeping up with the changes in the way business is done is no small challenge. Taking inventor y of our past and present, technology integration within claims management and vehicle repair is nothing new. Shop management systems have played an important role as it has enabled collision repairers to process reports to better manage their performance and scalability. Management systems have also lent a hand in reducing the average hours of administration per file. The ability to aggregate data and to make insightdriven decisions for your business and insurance partners is expanded through the use of technology. Communication with claims stakeholders has also been enhanced. By leveraging the possibilities in today’s digital networks, companies can deliver the next level of customer service to clients by providing real-time updates on the status of the repair, a ser vice muchappreciated by busy clients. Building stronger relationships between facilities, insurers and our common customers is the positive end-result. Technology is also making a difference on the shop floor as it has the ability to
increase capacity and produce more with less. The design and pace of the shop’s workflow is assisted digitally. OEM certification programs could not have come at a better time as they have positioned collision repairers to be ready as the changes in vehicle components occur and the demand for specialization increases. Progressive and proactive facilities are not only keeping up, but in many cases leading the charge by adopting new technology. The ability of repair facilities to stay ahead of changing technical trends will dictate who becomes a leader in the field.
Domenic Ieraci of Prochilo Brothers and Arlene Dickinson, CEO of Venture Communications and star of Dragons’ Den, discuss auto technology at a Toronto business event.
Prochilo Brothers Auto Collision is a wellrespected, successful and family-owned auto collision MSO that operates in Toronto, Scarborough and North York. Starting with one location in Toronto, the company has since expanded locations and built a strong reputation for delivering customer-focused service.
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POINT BLANK WITH PIERCEY
FOLDINGMONEY We need bills, not pocket change. By Sam Piercey
T
he lion is out there, and he’ll get us if we’re not careful. It seems to me that a lot of collision repair owners are kind of like sheep: placid enough as long as there’s food and shelter. Get them scared and they start to run off in all directions. Who can blame them? We’ve all seen at least one staff member move on to a
make enough profit to cover it. What if it doesn’t, though? What if they’re still paying off last year’s investment when a new challenge comes along? The answer is pretty simple, again: they close up or go to the bank again. We all like to complain that there are no apprentices coming into the trade, or that they’ll come in and go back out again. There’s a good reason for this.
A YOUNG KID THESE DAYS HAS GOT TO PAY THE BILLS.
trade or a business that pays better. Not to mention, their new career doesn’t usually require them to constantly upgrade their skills just to stay current. Plumbing doesn’t change much. Electrical doesn’t change much. But bodywork? Oh boy. When the manufacturers change the models to high-strength steel or aluminum or carbon fibre, who has to pay for new tools and training, again and again and again? It’s us. It’s totally up to us and I’m starting to think it always will be. When we need to upgrade the facility or even build a new one to match the current reality of what we need to do, who pays? It’s up to us again. T h e m aj or it y of prof it s f rom a business should go back into a business. Improving it, upgrading it and making sure it’s ready for the future. That’s just the way it works. The trouble is, what do you do when the profits being returned don’t cover the investment needed to upgrade? A lot of owners over the past 10 years have decided to simply close their doors and sell out. Others bite the bullet and go to the bank. Business ow n e r s h av e b e e n d oi n g t h i s for hundreds of years, in the expectation that the new investment will let them 30 COLLISION REPAIR COLLISIONREPAIRMAG.COM
You need an enormous level of skill to be a body tech these days. You need to be technically minded, good with people and willing to spend your working life learning new techniques. It’s a rare combination. The ones who have it are often tempted by another career path. Unless they absolutely worship cars, they’re probably just going to seek that other career. Why not? A young kid these days has to pay the bills, just like we did, and collision repair may not give them what they need. Our overhead is getting bigger. Put in all the lean processes you like, you’re still paying more in taxes, paying more for your tools and training and paying more for your business and workplace safety insurance. We’re paying more for our utilities too. Gas, heat, hydro ... it all adds up and the bill is always rising. Paint and materials aren’t free, either. So what’s the answer? Simple. We need more money, right across the board. CRM Sam Piercey is the co-owner of Budds’ Collision Services in Oakville, Ont. He is a long-time Coyote member and sits on many boards and committees. Sam can be reached at sam@buddscollision.com.
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PRAIRIE VIEW
EXTRAMILE It’s always worth it and you’ll benefit in the end. By Chelsea Stebner
W
e’ve all heard this line: Whatever you put in, you will get out. You get what you give. Karma. The fol low i ng stor y has b e en in the Parr books since its early days (est. 1952). Ken Scissons was the original proprietor of Parr Auto Body and one day long ago he was getting his vehicle fueled up at the local gas station. The young man working the gas station and fueling up his vehicle was moping about with a long face so Ken asked him what was wrong. The young man stated, “got married, got no money to take my bride on a honeymoon and I’m feeling low.” Ken Scissons pulled a $100 bill out of his wallet, handed it to that young man and said “take this and enjoy a honeymoon with your wife.” In the early 1950s $100 was a windfall. By the time we heard this story, Ken
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Scissons was long gone. But that young man became a forever customer of Parr Auto Body. Going the extra mile will come back to you - whether it’s in a customer for life, a young apprentice who becomes a superstar in the industry because of the start you gave him or her, a vendor that bends over backwards for you because of the way you treat them. As a group of young business owners, we look to our leader and how he’s quietly built his business over the last 15 years, we have observed and learned and wish to continue that legacy. We think of the Ken Scissons story often. What do you stand for? What’s important to you as a business owner, your team, your customers, your stakeholders in your business? Our team knows that when making a decision on a customer’s vehicle to “always take the high
PRAIRIE VIEW
road.” What does that mean to us? Simply, do the right thing. It might cost us some money. It might take a bit more time. A customer might never know we went the extra mile, filled the chips, shined the headlights, polished that scuff off of his lower bumper that he didn’t know was there.
of why we chose this trade? We chose it because of the people. Yes, we need and expect profit and yes, we love vehicles but the truth of the matter is that we want to make a difference each and every day in someone’s life. We build relationships, we grow our team, we
WHAT DO YOU STAND FOR? WHAT’S IMPORTANT TO YOU AS A BUSINESS OWNER? Our team knows: honesty, integrity, safety, craftsmanship. When we hire, we think of those values, when we do business with our vendors, we use those values, when we are out in our community, we are reminded of those values. We practice those at work and in our daily lives. This turns into a bigger question. Why are we in business? Money? Fame? Nice cars? Vacations? For some, success is straight cash. For others, it’s more free time. Profit is exactly why each and every one of us is in business, but the big picture
learn, we make mistakes, but we are together in this journey and while we build this awesome business that we’re in, we are making a difference. Ask yourself the question. What legacy are you building? 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.
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TRAINING
BESTPRACTICES A short guide to what to look for in your training provider.
ByAndrew Shepherd
I
n our last article we looked at best practices for education and training. I-CAR has advanced the precept that knowledge management is rapidly becoming the most important driver of business success–and has instilled this in many of the new Production Manager Role courses. In this approach, the first and foremost role of the manager or owner is to position training in the knowledge development cycle (create and instill a vision for success; determine the skills needed to achieve success; plan and execute training to build those skills; ensure the knowledge acquired through training is disseminated as widely as possible).
• Access by staff to use on their own time. • Online courses are enhanced by access to online sk i l l te st i ng and pre - e mpl oy me nt te st i ng / evaluations. Generally, shops have found that onsite/ classroom/hands-on training works for: • Advanced hands-on training for technical instruction. • General and specific applications. • Hands-on training in the shop. Ideally we would choose the form of training which fits the material, the trainee and the shop. Unfortunately we don’t have such a surplus of
KNOWLEDGE MANAGEMENT IS RAPIDLY BECOMING THE MOST IMPORTANT DRIVER OF BUSINESS SUCCESS. But all training is not created equal. It can range from theoretical to hands-on, from short bursts of 15 minutes to days or even weeks, from delivery in your shop to a separate location or even distance learning. How do you choose a training provider? Reputable training providers will offer: • A stable and predictable course schedule, with full information on location, the trainer and course content, to allow as much planning as possible by the shop management; • A learning management system (LMS) in place to let you keep track of training progress; • A website which details course descriptions, schedules and offers course registration; and • Comprehensive connections with the shop and trainee to provide notifications of upcoming courses, existing registrations, etc. Finally, word of mouth or customer references should confirm that the training provider offers a quality product with good customer service. In choosing a form of training, shops have found that online training works for: • Teaching basic theory. • Basic technical and sales training. • Product introduction, basic technical and sales training modules. 34 COLLISION REPAIR COLLISIONREPAIRMAG.COM
training choices that all options are available for all skills development areas. What is clear is that we are going to be doing much more training than in the past. With the increased time commitment and cost comes greater urgency to get the best return on the investment. To this end, no matter which provider you choose: • Ensure techs know why they’re attending the session and understand the overall goals; • Move the learning from the individual to the group–ask for a five-minute recap of the training– spend time assessing where the learning can change your shop practices; • Continue to review the role of training in meeting your goals and use your goals to drive training. In the next issue we’re going to look at a much more fundamental question. Are our current training programs, including apprenticeship, a legacy of the past, and do we need a more modern approach for the high-tech industry of the future? 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
APRIL 2016 COLLISION REPAIR 35
WHO’S DRIVING?
JOBDESCRIPTION The boss has two duties that can’t be delegated.
By Jay Perry
T
he owner of a business (in my boileddown version of a job description) has two things to do when it comes to keeping her company moving forward. The first is very simple: represent the company to the community. This representation covers ensuring compliance with the local regulations, but it is really more focused on being sure the company has a seat at several different community tables. The first one is where your business resides, the local community. You must participate in things like the social activities, local charities, sport sponsorships and the
browbeating or harsh to your people. There’s no need to go around with the proverbial whip. Rather, move through your place in a fashion where you are constantly examining if your people are up-to-date on trends and techniques. Have they received the latest training? Are there tutorials that could sharpen their skills? Is the equipment and software you supplied truly sufficient? Much training is done on the job these days as things rapidly change on the business landscape. Do you have a dedicated time set aside for an inhouse training regimen? You should. There are many sources of content for these types of sessions
THE FIRST IS VERY SIMPLE: REPRESENT THE BUSINESS TO THE COMMUNITY. like. This is the community in the most traditional sense of the word. Another community is the business community in which you operate. This means you should be a member of the local Chamber of Commerce, plus any networking groups and the various advocates for the business perspective. You know what a business, your business, needs from the community. Chances are you know this better than the community leaders do, as most of them are trained and educated in not-for-profit or bureaucratic methods, rather than business. The third community where you need to be represented is the industrial community. By that, I mean you must be represented in our industry. This means supporting your industry’s associations and lobbying groups, taking advantage of educational opportunities such as seminars and expositions and participating in peer groups. Basically, you need to be at anything that will allow you to learn what is coming down the pipe. That’s a lot already! But remember, I said there are two main things. Let’s get to the latter item, which is frankly even more important: making sure everyone on your team is doing their job. Now I do not mean this in a way that would be domineering, 36 COLLISION REPAIR COLLISIONREPAIRMAG.COM
that are both cheap and easily attainable. You need to work on this as part of growing the culture of your company. Another aspect of doing this part of the job is supplying the support that your people need in a way that they need it. Do you have multiple generations in your firm? It’s pretty likely in today’s environment. Do you try to treat everyone the same? You can treat people equally without treating them the same. Have you prepared yourself to offer that kind of leadership support and are your managers trained as well to handle the various situations they will face? Making sure that everyone is doing their job is all about positive reinforcement and providing vehicles of growth for personnel (and personal!) development, not being lord of the manor. Adopting this attitude and make sure you’re represented in your communities is what will keep you the one who’s driving. CRM Jay Perry is the founder and owner of Automotive Business Consultants (ABC), a performance coaching company specializing in the automotive service industry. He can be reached via e-mail at jayperry@a-b-c-inc.com.
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APRIL 2016 COLLISION REPAIR 38
PROFILES OF SUCCESS
PEERLESS REPUTATION
Vito Attivissimo’s Fix Auto stores support his family, and his family supports the business. Vito Attivissimo and some of the family at Fix Auto Cartierville. Front row, from left: Frank Attivissimo, Nadia Attivissimo, Teresa Attivissimo and Nicoletta Attivissimo. Back row: Joe Attivissimo and Marco Bruno.
By Jeff Sanford
F
ix Auto’s Vito Attivissimo owns and operates two shops in the Montreal area. His is a family-focused business that has prospered under his care and direction. On a recent late February afternoon, the well-respected, energetic proprietor answers the phone in the shop with his son Joe. It is quickly determined the interview is taking place just a couple days after Vito’s 30th anniversary in the collision repair industry. “I’ve been doing this for a very long time,” says Vito. Has he ever. Today, his family helps him operate a large organization that also includes a second shop, located in Laval Ouest. But it all goes back to 1979, when Vito arrived in Canada from Italy. In an interview with Collision Repair magazine, he reminisced a bit about those early days. Like many of his generation, Vito picked up the skills on the job. The industry was
just then evolving into its modern form. Vito remembers a lot of double shifts. “This is where I learned it, in Montreal. At first, I started preparing cars. Then I started to paint. I would finish at six o’clock at one shop and then go off to another shop and paint cars there. For many years I did that,” he says. START OF A LEGACY Eventually Vito set out on his own. His entrepreneurial spirit led him to open a small shop in 1986 in the vibrant Côte-desNeiges neighborhood, in the centre of the island of Montreal. “We started with space for just four cars,” he says with a laugh. But they were successful. The quality of the work and great customer service kept clients coming back throughout the years. The size of the collision repair facility began to increase. Eventually Vito took on a partner. The two would be among the first
25 stores in the Fix Auto chain when that organization was just coming together. “We joined in 1992, when Fix Auto was just starting off,” Vito remembers. It’s clearly been a good relationship to have lasted this long. Vito is a true believer in the Fix Auto model. He says that through the years, Fix Auto has been a strong partner, providing him and his staff with the tools, training and support needed to grow and develop his businesses. “It is so much more than just a banner or a brand, it’s been a real partnership,” he adds. The feeling is definitely mutual. “Vito and his family have been wonderful ambassadors for almost 25 years now. We are truly proud to have them as a part of our network,” says Michel Bourgeois, General Manager of Fix Auto Quebec. Eventually, the size of the collision repair facility expanded so that there was room on the floor for up to 40 cars. APRIL 2016 COLLISION REPAIR 39
PROFILES OF SUCCESS
The third generation? Grandkids Vito and Valerio.
By 2007 the firm split into its current form, with Fix Auto Cartierville and then the addition of a smaller store, the Laval Ouest location. Today, the Cartierville location boasts 14,000 sq. ft. of space, with Laval Ouest adding another 7,000 sq. ft. This spring they’ll add another 3,000 sq. ft. to the Laval shop, as the business continues to grow through its fourth decade. EXTENDED FAMILY One subject that always comes up when people talk about the company is the remarkable focus on family. Vito and his wife Teresa are the centre of a large extended Montreal Italian-Canadian family that supports and is supported by the business. Today, all three kids are in the family business, including sons Joe and Frank, daughter Nicoletta, son-in-law Marco, who 40 COLLISION REPAIR COLLISIONREPAIRMAG.COM
Hard at work, a technician at Fix Auto Cartierville.
PROFILES OF SUCCESS
does valuation and daughter-in-law Nadia, who is at the reception desk. Christian, a cousin of his wife, works at the Cartierville location. “Plus, my brother-in-law Dominic and his son Frank work in the Laval shop,” says Vito, with clear pride. “It is truly a family-run business,” he says. GROWING UP RIGHT Joe and Nicoletta take care of business at Fix Auto Laval Ouest. She likes to talk about how the business has always been a part of the family, and the family a part of the business. “We grew up at the shop. We would come in on Saturday just to be with our Dad. My brothers were working from an early age,” she says. Joe, Vito’s eldest son, remembers that time. “I started early,” he says. “If we weren’t in school, we were helping out at work. We quickly learned the value of working together to ensure great service and results.” Going on to talk about her father, Nicoletta discusses his peerless reputation as a businessman. This is almost certainly one of the reasons why it is the clients have always come back through the years. “He’s a very honest man. He’s loyal to his employees. I don’t think you can find anyone who would have a negative thing to say about him,” says Nicoletta. “The collision repair industry is a service one. You don’t keep customers coming
back over decades with anything less than excellent service.” Today, the business employs 25 people between the two facilities. Monthly, the organization will work on up to 120 cars. Not bad considering it was four to five cars a week on Côte-des-Neiges. On the island of Montreal, the competition is tough. This is a major urban centre. “We aren’t the only ones doing it, we have competition,” says Joe. But the two collision repair facilities continue to grow their business. Vito notes what many collision centre owners have experienced this year, that it’s been a bit quieter because of the warm winter. “But our business is growing every year,” says Vito. And that’s an important thing. ALWAYS INNOVATING Proving that innovation is also a top priority for the Fix Auto shop owner, the facility has also started in on some aluminum repair. “It’s important to know how to work it, and proper training is necessary,” he says. Keeping with other modern trends, the shops also make themselves visible on social media, so locals know what’s going on in the neighbourhood business. But when it comes down to it, looking back, there’s one attribute that Vito has always had that helped put the business over the top. “I can tell you, he’s a very hard worker,” says eldest son Joe. It’s the best way to prosper.
THE QUALITY OF THE WORK AND GOOD CUSTOMER SERVICE KEPT CLIENTS COMING BACK.
Attention to detail is always important, no matter how big or how small the job.
APRIL 2016 COLLISION REPAIR 41
EXECUTIVE VISION
Certified
SUCCESS
E
SGI’s Paul McIntyre on OEM certification, advanced materials and expanding the workforce.
By Mike Davey
xecutive Vision focuses on discussions with key players in the auto claims economy and the auto
industry, their views on the present industry and their vision for the future. In this issue, our guest is Paul McIntyre, Assistant VP of Urban Claims and Salvage, Saskatchewan General Insurance (SGI). McIntyre received his Bachelor of Laws from the University of Saskatchewan and worked in private practice for a number of years. In 2012 he became Assistant Vice President of Urban Claims and Salvage, the position he holds today. He is a member of the Law Society of Saskatchewan and the Canadian Bar Association.
Collision Repair magazine: What do you see as the three most critical issues for the collision repair industry? P a u l M c I n t y r e : The f irst would b e original equipment manufacturer (OEM) certification of repair shops on various vehicles. Shops face continuous pressure to become certified by various manufacturers to repair vehicles, which has the potential of limiting customer choice and increasing cost. The second would be technology, including different materials used in the construction of vehicles, such as aluminum and carbon composites. The third would be the recruitment, retention, and training of the labour force. CRM: What is the single most important decision facing repair facility owners today, and how should they deal with it? PM: A shop owner has to make a decision as to what their shop and business will look like five years from now. Owners have to determine if they want to and can be a repairer of all vehicle makes and models, or decide if they want to concentrate on one manufacturer or area of manufacture. My view is that the repair industry understands this challenge. A shop owner has to figure out their short and long range
plans and how to get there. The days of simply having work come in and go out and then the shop gets paid are over. They’ve got to have to a plan. Every facility, regardless of size, has to look at the industry and decide where they fit. They need to ask, “Where do I want to be in five years and how do I get there?” It’s a bit of crystal ball gazing, but there are significant issues coming down the pipe with materials, OEM certifications and how they’re going to align themselves. The repair industry has to partner with insurers. We’ve just gone through a fairly lengthy process to allow collision centres to do the estimates. We used to do it. SGI used to do literally every sheet, but we’ve built a significant structure to allow us to get repair instructions out to the repair firms and give them guidance on what KPI scores we’d like to see and what they mean. I think the repair industry as a whole is reasonably sophisticated, and they want to partner with the best-in-class. CRM: In your view, what are the most important steps for a shop to take to secure longevity? PM: For continued success, repair firms need to have a good long-term business plan, partner with the insurance industry,
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and be very change-adept. I know it’s an old saw, but the only constant is change. As a repair facility, or an insurer for that matter, you have to be adept at managing change. The way I look at it, repairers have to make some choices. Do they want to be a specialist? Attempt to be an all makes and models repairer? They have to make those decisions. Just as important, they have to be able to implement those decisions. CRM: What do you think will be an area of growth for collision repair facilities? PM: Any repair facility that can improve cycle time and customer service will be a winner. Cycle time is a pretty standard key performance indicator. If you’re providing quality, safe repairs and so is your competitor, then I’ll go to the repair facility with the shorter cycle time every time. That saves insurers money in the long run, but it isn’t just about saving money. Our mutual customers are becoming more aware of timeliness, and they’re starting to care more about things like what the facility looks like. I would say the biggest thing is keeping people informed. Speaking just as a consumer, if you tell me and alert me that the job won’t be ready, and give me an updated timeline, that will build loyalty.
EXECUTIVE VISION
I’ve seen stats that show that even if a repair facility doesn’t repair on time, as long as they make sure to keep the customers informed, they’ll return to that shop. In a nutshell, what customers see as a satisfactory experience is that you do what you say you will and keep them advised if it changes. Most customers understand that there are circumstances outside of your control, but you need to let them know. CRM: Thinking solely of how it’s going to change the business, what’s the biggest change we can expect in the next few years? PM: Some of the biggest changes currently f a c i ng t h e re p ai r i n du st r y i n clu d e technological change, such as materials and electronics. We can also expect a pretty dramatic change in how our mutual customer interacts with both the insurer and the repair industry in the years to come. I’ll break it down: from the insurance
“
they send an email or tweet and the repair facility has to be able to deal with those. It’s a matter of making sure you’ve got some way to manage the responses. CRM: What does the future hold for SGI? PM: SGI has worked hard with the industry over the last number of years to ensure we’re properly positioned to take advantage of technology which allows electronic submission and approval of estimates. It positions SGI for the future dealing with all of the challenges that the industry faces. We’re the province’s statutory automotive insurer. We’re spending a lot of time and effort improving the customer experience. Sometimes the experience doesn’t go the way the customer would want, and sometimes that’s just a matter of managing expectations. We work with our customers so they know what to expect and what the journey is.
We’re building an infrastructure to do this. I see a similar situation for the collision repair industry. They need to be able to deal with the customer in the way that the customer wants, and that’s always as an individual. For example, there are plenty of repair facilities that will provide their customers with photos of the repairs in progress, but some customers don’t want to see their cars “naked.” It’s a matter of tailoring services to customer expectations. The real question for any business is “Would this customer refer a family member to our enterprise?” As an insurer, we want the answer to be unequivocally “Yes!”CRM
OWNERS HAVE TO DETERMINE IF THEY WANT TO AND CAN BE A REPAIRER OF ALL VEHICLE MAKES AND MODELS, OR DECIDE IF THEY WANT TO CONCENTRATE ON ONE MANUFACTURER OR AREA OF MANUFACTURE. - PAUL MCINTYRE
perspective, our customers have come to us and said they want to interact in a multitude of channels. The old way, where a customer comes in and then maybe gets a letter a couple of weeks later, simply doesn’t work. Our goal is to interact with them how they want to interact, whether that’s email, Twitter, instant message. Our customers have told us, “We don’t want to phone and we certainly don’t want to take the time to come in.” It’s much the same for the repair industry. At one point in time, the customers would phone. Now
Paul McIntyre.
APRIL 2016 COLLISION REPAIR 43
44 COLLISION REPAIR COLLISIONREPAIRMAG.COM
CCIF Cars & Tech Showcase
INDUSTRY EVENT
Canada’s national forum moves to the next level at Toronto event By Mike Davey
Jim Dickson of Rio Tinto presented on the current and future use of aluminum.
The Cars & Tech Showcase drew together repairers from across the country. From left: Raj Kavia of CSN-Kavia Auto Body, Lloyd Giles of Giles Midtown Autobody and Chelsea Stebner and Tom Bissonnette of Parr Auto Body.
Darryl Simmons, Publisher of Collision Repair magazine; Bing Wong of Canadian Hail Repair and Mike Davey, Editor of Collision Repair magazine.
I
t was hyped as the biggest collision repair event in Canada’s history and the Canadian Collision Industry Forum (CCIF) Cars & Technology Showcase lived up to expectations. Tickets to the event were sold out well in advance, and it showed. Even the back of the hall was crowded during the presentations with stakeholders who couldn’t find a seat. The CCIF Cars & Technology Showcase was held at Universal Event Space in Vaughan, Ontario. There were 600 tickets sold, but walking the halls it seemed like a lot more. Repairers and other stakeholders came from across the country and from
Wendy Hillier of Intact and Jay Perry of ABC.
Mike Kukavica of Porsche discussed technological advances in the collision repair space.
CCIF attracts representation from the recycling industry as well, including Steve Fletcher of Automotive Recyclers of Canada and David Gold of Standard Auto Wreckers.
the US to attend this event. It was time well spent, judging by the reactions to some of the presentations. One of the first presenters of the Friday session was Mike Anderson of Collision Advice. He spoke with great vigour and authority on virtual steering, zero point calibrations and especially on the need to run scans both pre- and post-repair. Anderson pointed to the enormous number of computers and modules in today’s vehicles, and stressed that a thorough scan will often reveal problems that don’t show up as indicator lights. Not doing your due diligence in this area
Gloria Mann of Collision Repair magazine and Dave Swenson of Colour Compass.
Paul Stella of Toyota Canada and Pat Ryan of CAR-MS QRP.
can lead to disaster. Anderson peppered his talk with stories drawn from his experience as a consultant that outlined various times a scan could have ended up saving time and money. In one example, a Toyota Camry arrived in a collision centre and needed a new bumper and new grill. During the reconstruction, a translucent grey emblem rather than a clear one was put on the front. That tiny oversight negatively impacted the cruise control by covering up a needed sensor. The modern collision repair facility cannot survive that kind of negative client experience. Repair techs need to be aware of the new realities. APRIL 2016 COLLISION REPAIR 45
INDUSTRY EVENT
As Anderson says, “You need to do a preand a post-repair check. You need to find out what you’re missing. There are codes that need to be reset that don’t show up as warning lights on the dash. You need to know those.” For more on this, please see “Scan or Be Damned!” on page 61. Next to take the podium was Pete Karageorgos, Director, Consumer & Industry Relations, Ontario for Insurance Bureau of Canada (IBC). Karageorgos filled in attendees on the new towing and storage regulations in effect in Ontario, and the advocacy work IBC has done on this issue. “ T h r o u g h o u t O n t a r i o w e’v e g o t municipalities that have been taking action. Some of the largest municipalities have gone out and enacted bylaws on their own to regulate towing and storage,” said Karageorgos in an interview with Collision Repair magazine prior to the event. For more on this, please see Karageorgos’ overview of these new regulations on page 53 of this issue. After a short networking break, CCIF Chairman Joe Carvalho introduced Jim Dickson, Director, Global Automotive Strategy, Commercial, Primary Metal for Rio Tinto. Rio Tinto is one of the largest producers of aluminum in the world. Dickson discussed advances in multi-material vehicle designs and their intersection with the repair process. He addressed joining, corrosion and dust management as well as key training considerations. Mi ke Ku kav ic a, C ol lision R ep air Technology Instructor for Porsche Cars North America, followed Dickson and shared his perspective on changing vehicle technology, and the cultural changes needed to keep pace. “For a long time the industry was one in which the tech on the floor would say, ‘I’m the expert. Give me the part. I’ll figure out how to get it on the car.’ But with these high end cars, there are specific repair instructions. And these have to be followed,” said Kukavica. The lunch break allowed attendees an opportunity to visit the Cars & Technology Showcase. This offered a chance to interact with vendors as well as viewing the various displays highlighting the advanced multimaterial designs of current generation automobiles. The afternoon session was dedicated to two panel discussions. These followed up on the panel discussion presented at CCIF Calgary, in which a panel of repairers discussed adapting to the constant need
to continue to invest in training and equipment. The panel discussions were split into two parts: a repairer discussion and an insurer discussion. The repairer panel discussion was m o d e r at e d by Jo e C a r v a l h o, C C I F Chairman, and looked into repair standards, how the industry currently defines key performance indicators and the challenges with retaining qualified staff. The insurer panel discussion, moderated
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by Larry Jefferies, CCIF past-Chairman, focused on key issues for insurers, including managing repair programs, and finding the balance between meeting OE repair guidelines and ensuring sustainability. The event wrapped with announcements on the progress of Haiti Arise, an effort supported by CCIF to build a technical school in Haiti, and closing remarks from Joe Carvalho. For more information, please visit ccif.ca.
REPAIRER PANEL: KPIS AND THE NEW BREED OF TECH
The CCIF Repairer Panel. From left, Bill Davidge of CARSTAR, Andy Neufeld of Fix Auto, Mark Roesch of CSN Collision Centres and moderator Joe Carvalho. Carvalho is the current Chairman of CCIF.
The panel discussions at the Canadian Collision Industry Forum (CCIF) are frequently among the most fascinating parts of the meetings. Sitting on the repairer panel this year were Bill Davidge of CARSTAR Canada, Mark Roesch of CSN Collision Centres and Andy Neufeld of Fix Auto. The panel was moderated by CCIF Chairman Joe Carvalho. The discussion got underway as the panelists were asked to consider what they thought the landscape for repairers would look like in three years time, based on the expected increase in advanced materials. “They (repairers) have to look at it now, and they have to make some very difficult choices,” said Bill Davidge of CARSTAR. “The expense of the equipment, and the amount you need for different brands is going to be a major concern. It’s going to be very difficult if you’re not prepped for it.” Andy Neufeld of Fix Auto noted that while some facilities are on top of things, the industry in general is already behind the times. “Some facilities simply do not make enough of a profit to reinvest in the business to the level that will be required if they want to stay competitive,” said Neufeld. Mark Roesch of CSN Collision Centres says he believes that we will need higher levels of collaboration between repairers and the OEMs. “Repairers and the OEMs will have to work collaboratively. We need to understand that these vehicles with advanced materials are already on the road,” he said. “I believe the landscape will look considerably different in three years, simply because this is something we have to do.” Next, panelists discussed whether they believed there is adequate understanding at the insurance claims staff level of the increased requirements to repair vehicles correctly. Andy Neufeld of Fix Auto may have summed it up best: “If the shops have to have it, and the shops definitely do, then the insurers need to have it as well,” he said. “They also need to be prepared to pay to have the car repaired to OEM standards.” In general, the panelists seemed to agree that this is something insurers have to know. Davidge pointed out that, going forward, the information should be embedded in the estimating system. This would help to eliminate misunderstandings of what repair processes can and cannot be safely used on a modern vehicle. The panelists also looked at how a collision facility can stay competitive, maintain and improve insurance company key performance indicators (KPIs) and perform all suggested OEM operations.
INDUSTRY EVENT
INSURER PANEL: COLLABORATION
Stakeholders came from across the country and from the US to attend this event. It was time well spent.
“I do believe there is increased pressure to meet those KPIs,” said Neufeld. “I think the majority of shops are doing the OEM procedures anyway, they’re just not getting paid for them. This is obviously a problem.” Davidge noted that KPI numbers alone don’t really tell you the whole story. “It’s good to be competitive, but we can’t be compared to the guy down the street who is doing Chevy Cobalts all day, if we’re in a high-end environment that’s working on BMWs,” he said. Finally, the panelists were asked if they were concerned with maintaining highly qualified staff when retaining them is crucial to operations. Roesch was the first to point out that today’s technicians are very different from the traditional type. “It’s really a new breed of technician that we’re dealing with moving forward,” he said. “This technician doesn’t just need to be good with their hands, they need to be good in the classroom.” Neufeld expanded on this theme, noting that today’s technicians not only need higher levels of technical skills, but skills that fall outside of the traditional model of bodywork. “We’re not just hiring panelbeaters,” he said. “They’re computer savvy, they’re technically minded and they’re good with their hands. Unfortunately, the ones that do find they’re interested and have the right combination of skills sometimes realize they can make more money in a different trade. Wages are a key part of this. We need to raise that up, and make it comparable to other trades.”
The insurer panel at CCIF. From left: Luc Ruest, Tony Mammone, Tony Sutera and moderator Larry Jefferies.
It’s rare that a group of repairers gets to hear multiple representatives of major insurance companies discuss the challenges of the collision repair industry. The Canadian Collision Industry Forum (CCIF) offered just such an opportunity through an insurer panel discussion. The insurer panel took place immediately following the repairer panel at the most recent CCIF meeting in Vaughan, and built on some of the topics raised during that discussion. On the panel were Tony Mammone, Director, Claims for RBC Insurance; Tony Sutera, National Vendor Manager (APD) for RSA/Johnson and Luc Ruest, National Vendor Manager for TDI Auto Preferred Partner Network. Larry Jefferies, past-Chairman of CCIF, served as the moderator. The first topic for the panel was the challenge repairers face in effectively managing the balance between the key performance indicators (KPIs) established by insurers and the required OE repair recommendations. Panelists were asked whether the current repair guidelines may need to be adjusted to more accurately reflect changes in the repair process. “If t h e y ’re fo l l ow i n g t h e OE M specifications, and it says that, for example, you need to recalibrate a mirror to get the car back on the road, then do a scan, take a photo of the post-calibration reading on the scanner that shows the code, and another photo that shows it has been calibrated. Make sure the make and model is showing in the photos, and add it to the appraisal,” said Tony Sutera. “You need to follow the right process to get that vehicle back on the road.” In a follow-up interview with Collision Repair magazine, Sutera recommended that repairers try to answer questions from the image desk before they’re asked. This can be done by anticipating what they’ll want to know.
“The more detail you can provide, the better. If you’re just going to throw it in, then you’ll definitely get questions,” he said. “Add some comments to show the image desk not just what you did, but why. Show us where the source is. Cooperation between the shop and the insurer is critical. We need that input. Our goals align: to get the insured in and out as fast as possible, with a quality repair at a fair cost.” The next topic of discussion was OEM subscription sites, specifically the fees paid by repairers to access them. In particular, the idea was raised that perhaps repairers should be compensated for these subscriptions as a line item on the appraisal. Moderator Larry Jefferies summed up the issue and its associated costs: “When you add up the 17 manufacturers that sell a product in Canada, it becomes a big nut,” he said. “This hasn’t gotten enough airtime yet. How can we absorb that cost, or should we be finding a means of driving compensation?” It seems as if, with certain insurers at least, there’s already a way for collision facilities to be compensated for those OEM subscriptions. “We roll it into the training and learning piece,” said Tony Mammone. “If you’ve met certain standards from an I-CAR standpoint, there’s an allowance for accessing those subscriptions.” This makes sense from the viewpoint of encouraging training, and also as a way to ensure that vehicles are repaired to OEM standards. “We need to continue to collaborate among industr y stakeholders and ensure we have more clarity in what is necessary in providing a safe repair for our customers and an exceptional client experience,” said Luc Ruest. The OEMs were also central to another part of the panel discussion, specifically the recent proliferation of OEM certified collision repair programs. Panelists were asked if they thought these programs would influence or impact on their choice of repair facilities in the future. “This theme aligns with much of what we’ve heard from our own clients,” said Tony Mammone in a follow-up interview. “Our policyholders want peace of mind. As complexity rises, it makes sense to align with facilities that have the right expertise.” APRIL 2016 COLLISION REPAIR 47
INDUSTRY EVENT
FIRST NOTICE OF LOSS Larry Jefferies, past-Chairman of CCIF, provided an update on the progress of efforts to standardize first notice of loss (FNOL).
A standardized First Notice of Loss (FNOL) could be of benefit in streamlining a portion of the pre-repair claims process. Thanks to the ongoing efforts of the CCIF, the industry is closer than ever to realizing these benefits. CCIF achieved a major milestone at the September 2015 meeting in Calgary when five of Canada’s leading automotive insurers agreed to a list of 18 items that would form the basis of a common FNOL assignment. Since the agreement, other insurers have indicated their intention to adopt the shared 18 items as separate fields in their FNOL assignment to repairers. Past-Chairman of CCIF Larry Jefferies updated CCIF attendees on the progress that has been made at the latest CCIF event held in Vaughan, Ontario. He predicted repairers would start to see standardization within the next few months.
“Many of the changes will happen by mid-2016 but some will take a little longer. Once it’s completed, all of the repairers will see a nearly identical first page of the assignment form coming from insurers,” said Jefferies. Jefferies also noted that within the next year, repairers would start to see the benefits. These include creating a better customer experience and improving cycle time by reducing labour costs not directly associated with the repair. CCIF is managed by the Automotive Industries Association of Canada (AIA Canada). AIA Canada has been instrumental in bringing repairers and insurers together to work on the project. “While all insurers will continue to maintain individual approaches to the First Notice of Loss, participating insurers will adopt all of the critical items listed below as separate fields as system changes permit. This is a major milestone to improving the collision claim and repair process for customers and the industry,” according to a statement from AIA Canada. There are a number of positive benefits to a standardized FNOL. For insurers, any reduction of total cycle time will result in an improvement in policyholder satisfaction. It should also reduce the total
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number of rental days. For repairers, a standardized FNOL should help to get cars in and out faster, and reduce the need for calls and emails throughout the process.
FIRST ASSIGNMENT CRITICAL ITEM LIST 1. Insured’s Name, clearly itemized into First & Last Names 2. Insured’s phone numbers 3. Insured’s Physical Address 4. Insured’s Email Address 5. Adjuster’s Name 6. Adjuster’s Email 7. Adjuster’s Phone Number(s) 8. Claim Number 9. Date of Loss (DOL) 10. Deductible Amount 11. Coverage for Rental - Yes or No 12. Policy Endorsements 13. Rental Vehicle Already Acquired or Arranged - Yes or No - Rental Company - Rental Confirmation # 14. HST or GST Exemption - Yes or No 15. Vehicle Status - Drivable or Non-Drivable 16. Claim Without Prejudice - Yes or No 17. Type of Loss 18. Area of Damages (Driver’s Side, Front End, Rear End, etc.)
APRIL 2016 COLLISION REPAIR 49
PRIDE. PASSION. SKILL. You work hard, every day, getting customers back on the road and keeping the engine of the business running. You’re the last line of defense between the customer and their next accident. It all comes down to you. This is your industry. This is your magazine. Bodyworx Professional celebrates techs, painters, and other members of the production staff. Every issue is packed with news, how-tos, and tips on working smarter, faster, and better, with a special insight into the world of customization and restyling. Be the best you can be. Subscribe to Bodyworx Professional today.
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BODYWORX THE VOICE OF COLLISION REPAIR TECHS & PAINTERS
PROFESSIONAL
VISION OF THE FUTURE
Paul Scott demonstrates how to program the drying robot.
W
alking into the production area of CSN-CARS Collision is like stepping into the future. It may be a cliché, but that’s the best way to describe what you’ll find inside. The collision facility in Burlington, Ontario has recently completed the installation of the Fixline system from Symach. Fixline is not a product, but a process. It completely revamps the process of collision repair from start to finish. It’s already up and running in numerous countries around the world, but CSN-CARS Collision is the first in Canada. Nick DiLuca, owner of CSN-CARS Collision, walked us through the process during a recent visit to the facility. “There are two stalls set aside for blueprinting and estimating,” he said at the start of the tour. “If you’re not doing an estimate, there
Nick DiLuca and CSN-CARS Collision bring the first Symach system to Canada.
shouldn’t be any vehicles in those stalls.” As DiLuca says, the first step in the Fixline process is blueprinting the repair. This has become a standard for progressive collision repair facilities, but the next stages of the process are where things start to get really interesting. Body filler is applied in the usual fashion if the repair requires it, but the time it takes to cure has decreased enormously. “Using the Symach system, we’re curing body filler in just a few minutes, rather than hours,” says DiLuca. Next, primer is applied. “We’re using roll-on primer,” says DiLuca. “I’d seen it in use in Europe years ago, but we didn’t have time to wait for it cure. The Symach system has allowed us to use it efficiently.” The vehicle is then masked and made ready for the paint booth. It’s during painting and curing that the advantages of the Symach Fixline system become most obvious. The entire system is programmable to a degree never seen before. The painter programs the system in advance and can then select the vehicle or parts from these programmed options. The painter can choose to input precise parameters or simply allow the system to scan the vehicle. Once it’s scanned, the painter can alter the program, for example to tell the system that curing is only required for certain areas. This dramatically speeds up the process. The system cures only what needs to be cured, using precision programming and robotics technology. Part of the beauty of the Fixline process is that there is no wasted movement. Various stages of the repair are carried out on the Car Mover line. The system uses tracks in the floor and special rollers built by Symach to move the car from place to place. The system is not Paul Scott, painter at CSN-CARS Collision.
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“We’re getting cars in and out faster, and nobody is stressed out. It’s wonderful.” – Nick DiLuca powered, but this isn’t necessary. Gloria Mann, Collision Repair magazine’s VP of Industry Relations, was on the tour. Despite being of slight stature, we found she could easily move a full-size passenger sedan along the track. The equipment is advanced and so is the new process. DiLuca notes that they’re expecting a 40 percent increase in productivity once staff are fully acclimatized to the new systems. “Productivity has already increased, and we’re just starting to see the benefit,” he says. “We’re getting cars in and out faster, and nobody is stressed out. It’s wonderful.” With that said, there are some points to ponder if you’re considering installing the system at your facility. It’s a major investment in terms of time. To install Fixline, CSN-CARS Collision had to shut down completely for several months. That means a loss of revenue, and a prolonged shut down may encourage technicians to find other work. The installation is complex. Symach’s staff are experienced at this, but the sheer amount of equipment that needs to be installed makes it a lengthy process. “We had four shipping containers of equipment delivered,” says DiLuca. “The teams from Symach were working 12 hours a day, seven days a week, but it’s a big job.” A big job, but a worthwhile one. Fixline isn’t just installing new equipment or changing the workflow plan. It’s a total change in the way cars are repaired. “The team from Symach did an amazing job,” says DiLuca. “They really know their business, and they work really hard. They had us up and running as quickly as possible, given how big of a change this was.” According to Symach, the majority of modern repairs involve only one to three panels. However, most facilities employ just one repair process. While this is suitable for extensive repairs, it isn’t necessary for smaller jobs. The Fixline system uses three different repair and layout processes, based on the number of panels to be repaired. The system optimizes repair times and reduces labour costs. The facility gets more work done in a shorter time frame, and the technicians do as well. That’s a bonus for everyone. DiLuca and his team did a lot of research before he made the decision to install the Symach system. DiLuca’s son, Fab DiLuca, even travelled to Italy to see the process in action. “We wanted to explore all of our options. We had all sorts of manufacturers in here to show us equipment before we made the decision,” says Fab. “I went to Italy to see it in action, and not just at their training centre. I needed to see how it worked in a busy shop, see how the cars moved, and what I saw that it worked as flawlessly as they said it would. The things they sold us on were true.”
Part of the Car Mover line. Cars are easy to move, even with just one hand.
The drying robot in action.
Fab, Natalie and Nick DiLuca.
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PRODUCTION
LESS
IS MORE
Capping the number of vehicles in your shop can improve production. Reducing work in progress can speed up cycle time.
By Bob DuBreuil
A
while back, I was at Kelowna Performance Collision Centre teaching one of AkzoNobel’s Acoat S elected Process Centered Environment (PCE) two-anda-half day Boot Camps. When I arrived, I walked out back and could not help but notice that the compound where they store vehicles in process did not have the usual amount of cars and trucks. I checked the production screen on their management system, and it confirmed what I was seeing. What I saw was about 75 percent of the work-in-process (WIP) that I would normally have expected. Pete Facinek, the owner of Kelowna Performance Collision Centre, saw me looking at his inventor y and calmly said, “Don’t panic, Bob. We are trying something new.” As you may already know, Kelowna
Performance Collision Centre was one of the first Canadian shops to adopt “lean” processes back in 2007. Over the years, we have been trying to determine the right amount of inventory for a shop that delivers about 40 vehicles per week. At any given time, there are no more than 14 vehicles actually being worked on in the shop—which has a staff of nine technicians. A couple of years ago, we felt that we needed two days’ supply of vehicles in the compound, as parts normally take about two days after the vehicles have been repair planned to receive parts. So we settled on a total WIP of 42 vehicles—14 in the shop plus 28 in the compound— and that seemed to work fine. Then a curious thing happened. Pete noticed that business slowed down a bit, the buffer inventor y shrank and
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production seemed to improve. So he decided to reduce his inventory from 42 to 36 and was very pleased with the results. So I was surprised when I arrived at the shop and counted only 30 vehicles in the total inventory. My first thought was that business had slowed to a crawl in Kelowna. I asked Pete how far out he was booking jobs and was astonished when he said they were scheduling vehicles out for several weeks. He had intentionally reduced his inventory to 30 vehicles to see what impact that might have on production. When I asked him what the answer was, he told me to put that question to his customer service representativess. So I did. They told me that Kelowna Performance Collision Centre was delivering more vehicles on time and even earlier than the target delivery date.
PRODUCTION
When you fill your shop and your compound with more vehicles than you can actually work on effectively, production slows down.
To most collision repair facility owners, this whole concept of reducing inventory would seem counterintuitive, as it is absolutely contrary to what most collision centres do when it comes to inventory. The old adage of “fill the shop and make nothing but money” comes to mind. We’re now finding out that the opposite is true. When you fill your shop and your compound with more vehicles than you can actually work on effectively, production slows down. Vehicles remain idle—and not just for hours, but frequently they remain completely untouched for days. In a study I read recently, the average repair in Canada consisted of 11 total labour hours. However, the vehicles spent an average of 113 hours in the shop when you look at keys to keys cycle time. In turn, this actually means that the vehicles were only being touched by staff as part of the repair for 10 percent of the time that they were part of WIP. Ninety percent of the time was process waste.
There are many reasons for this, and some you may not be able to change, such as waiting for parts. But there are things you can do, like reducing your supplement factor. It stands to reason though that if you have all of the parts for a vehicle and a technician is only working on that vehicle instead of juggling three or four at a time, the vehicle will be repaired that much faster. That is the philosophy, and is precisely what Pete Facinek is doing at Kelowna Performance Collision Centre. By reducing vehicles in his WIP, he is essentially forcing his team to work only on the vehicles that they have in the shop and, as a result, they are going through his production process much faster. Wow. Who would have thought that fewer vehicles = improved production. The collision world must be spinning out of control. Bob DuBreuil has been employed with AkzoNobel for 22 years and was one of the developers of the company’s “lean” initiative, Process Centered Environment (PCE).
APRIL 2016 COLLISION REPAIR 55
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LEVEL
PLAYING FIELD The Insurance Bureau of Canada helps explain changes to towing and storage legislation.
The nature and features of a storage facility will be taken into account when considering appropriate storage fees.
By Peter Karageorgos
C
hange is a constant for every industry, and it is driven by the customer, who is at the core of the work our respective industries do. This is the case for insurers as much as for the collision repair industry in Canada. In Ontario, there has been a lot of dialogue aimed at aiding drivers in their time of greatest need after a collision. The discussion involves the government, the auto insurance industry, the vehicle towing and storage industries, the collision repair industry, police and consumers. Helping the driver, the ultimate customer for everybody involved in these businesses, is our ultimate objective. First, it is important to share some information about Insurance Bureau of Canada (IBC). IBC is the national industry association for Canada’s private property and casualty (or P&C)
insurance companies. It represents the companies that provide Canadians with insurance for their homes, cars and businesses. It has been in existence for more than 50 years, and its member companies provide more than 90 percent of the home, car, and business insurance sold to Canadians. The P&C insurance industry plays an essential role in helping consumers manage the risks in those areas, and it is vitally interested in developments related to the collision and repair industry. The number of collision insurance claims has remained fairly level in the past five years among the provinces with private auto insurers. Volume in comprehensive claims—the other part of physical damage coverage—has also been steady. In dollar terms, collision claims and comprehensive claims costs in most provinces are roughly in the same range, with the exception of Alberta, which APRIL 2016 COLLISION REPAIR 57
has seen a recent upward spike. It is too early to determine if that spike is the start of a trend, but it should be noted. Data is a key factor driving changes in most industries, including the collision repair industry. For example, municipalities track complaints relating to vehicle towing and storage, and in many cases respond through introducing regulations and bylaws. Many municipalities in the greater Toronto and Hamilton areas have acted on consumer complaints and have introduced by-laws and regulations relating to vehicle towing and storage. Those complaints also led the provincial government to introduce reforms for towing and storage. P&C insurers have played a significant role in advocating for consumers in the review of vehicle towing and storage reforms in Ontario. Governments do a considerable amount of homework before they act.
In Ontario, the government surveyed over 500 Ontario consumers about their experiences with tow truck companies and vehicle storage lots in the province. HERE ARE SOME OF THE FINDINGS: • 97 percent of respondents said that a tow truck driver or business should be required by law to post identifying information on their trucks. • 96 percent of respondents stated that a list of fees for each service the driver or business provided should be included on the consumer’s invoice. • 96 percent said a tow truck driver or business should be required by law to accept credit cards. • 87 percent stated that a tow truck driver or business should be required by law to post their prices at their offices and on their website, if one exists.
A level playing field will be especially helpful for drivers who are not familiar with the steps to take after a collision, at a time when they are extremely vulnerable. In 2014, Ontario introduced the Fighting Fraud and Reducing Automobile Insurance Rates Act, which responded to major concerns over insurers’ costs at collision scenes. The regulations for towing and storage created by that Act come into effect this year and in 2017. Change will continue. Before the recent changes, there was only a patchwork of various local regulations for vehicle towing and storage in the province. Approximately 16 of Ontario’s 400 municipalities took action, and some of the largest municipalities have enacted bylaws on their own to regulate towing and storage. Sometimes solving one problem may create a new challenge. Imagine a police officer in York Region. It is a region composed of nine municipalities including the City of Vaughan, Town of Richmond Hill and City of Markham, each having their own set of by-laws, and that officer must also understand the Federal Criminal
Code and Provincial Highway Traffic Act. Think of the challenge created when a constable attends a collision scene. They must know the local municipal by-laws that apply, as well as the different regulations if the collision happened on a regional road, and also consider provincial statues. What if that collision is on a municipal road that borders two different municipalities with different regulations? That may be a very confusing situation. It’s confusing for consumers too, and can be confusing for those who deal with collisions every day as part of their jobs. Making sure that everybody is on the same page will help eliminate this confusion. That requires clear lines of communication between everyone; the intent behind some of the legislative changes is to do just that. For instance, the government has moved toward the disclosure and posting of rates, and to uniform insurance and identification requirements. A level playing field will be especially
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helpful for drivers who are not familiar with the steps to take after a collision, at a time when they are extremely vulnerable. The changes in Ontario are still in the early stages. There are other issues that have to be addressed, including tow truck inspection and operator training. More changes will be coming. Training and certification for those working in the industry is another area where work needs to be done. Everyone with a stake in the collision and repair process must understand that the industry has to ensure that the person who shows up at the scene is properly trained. Ontario hasn’t yet reached its destination on reform of towing and storage and arrived at the sought-after level playing field, but if all parties keep the idea of serving the driver as their destination, we’ll get there sooner. Peter Karageorgos is the Director of Consumer & Industry Relations for the Insurance Bureau of Canada.
THE TIGER AUTO PARTS ADVANTAGE
One of the warehouse locations of Tiger Auto Parts. The company has three warehouses with over 250,000 sq. ft. of space.
Bringing you the right parts, on time, every time.
The loading docks at one of the Tiger Auto Parts locations.
Some of the team at Tiger Auto Parts. An advanced inventory and
Deliveries are made to repair professionals twice a day.
order system allows them to pick any order in 10 minutes or less.
There are few things more frustrating than waiting on the parts you need to complete a repair. Just about the only thing that’s worse is getting your order and finding out it’s incorrect. Tiger Auto Parts has installed a new warehouse and inventory system that reduces the waiting time to minutes and reduces errors in picking to zero. That’s not “in the best case scenario.” It’s just what happens every single time. Place an order with Tiger Auto Parts by phone or through the web, and your order will be ready for pick-up in 10 minutes or less. “As soon as the order is placed, it’s on our order pickers scanning devices within half a second,” says Mike Younos, General Manager of Tiger Auto Parts. “The order will be completed and ready for pick-up in 10 minutes or less.” That’s an incredible testament to the advanced technology Tiger Auto Parts has installed. Even pizza places will want at least 30 minutes to get your order ready. Of course, most professional repairers don’t want to pick up their orders. They want them delivered, on time and with the exact order that was placed. Tiger Auto Parts has it covered. “We have a fleet of new trucks offering delivery just about anywhere in Southern Ontario,” says Younos. “If you order in the morning, you can expect it to arrive at your repair facility that day.
Order afternoon, and it will be at your repair facility the next morning.” The new system is a marvel of efficiency. Place an order, and it immediately goes to every scanning device. The parts are picked and the order is made ready for pick-up or shipping, at the customer’s choice. As noted previously, the entire process takes 10 minutes or less. The Tiger Auto Parts method doesn’t entirely rely on advanced technology. There’s also good oldfashioned customer service. “Customer service is more than just getting you the right parts on time. It’s also about the personalized service we provide,” says Younos. “Every customer has an account manager who takes care of them. They can always get in touch to place orders, cancel orders or change their orders. It’s like having your own personal customer service department. This is one of the things that makes us different from the competition.” Tiger Auto Parts carries a staggering number of top-flight products. Three warehouses, totaling 250,000 sq. ft. hold around 50,000 SKUs of parts. In the rare event that the product isn’t on hand, Tiger Auto Parts can get it from the manufacturer quickly and easily. All parts are purchased from ISO 9000/9001 certified manufacturers and are certified to meet or exceed OEM specifications.
The company was an early adopter of webbased technology to facilitate the ordering process. Today, Tiger Auto Parts has advanced even further to increase customer service and ensure that repair professionals receive the right parts, on time, every time. “We were one of the first in the business to offer online shopping,” says Younos. “Our website is extremely user-friendly. You can easily place orders, check the status of your order, pay invoices and submit returns. Not only that, but in the rare event that you do have to return something, we’ll process that return and credit your account within 24 hours. With just a few clicks you can do it all.” The high levels of customer service and the wide variety of parts available come with a surprisingly low price tag. “We understand that cost containment is always of concern to repair professionals,” says Younos. “We put efficiency first, and that means a very low mark up. You get top products at low prices.”
For more information or to place an order, please visit tigerautoparts.com.
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REFINISH
INFRARED BASICS
It’s invisible, but not mysterious.
A small infrared unit from B-Tec, intended solely for drying spray outs. One of the advantages of infrared curing is its high speed.
By Peter L. Phillipson
The following information is taken from “The Infrared Handbook” by Peter L. Phillipson and published by B-Tec Systems. Phillipson wrote the book based on his personal experience and numerous consultations with representatives of major coating companies and OEMs.
I
nfrared is all around us. In fact, any material which has a temperature above absolute zero (-273.15C or -459.67F) emits infrared waves to some extent. Even an ice cube is giving off a small amount of infrared radiation. Infrared radiation cannot be seen with the human eye as it falls just beyond visible light in the electromagnetic spectrum and has a stronger heating effect than any other type of radiated energy. Infrared creates heat in an object by exciting molecules. As different objects are made of different molecules, each will react in a different way. For example, on a sunny day, given the same amount of infrared from the sun, a wooden bench will not reach the temperature of a metal car. There are three wavelengths: long, medium and short wave. Generally speaking, the higher the temperature of an infrared lamp or heat source, the shorter the wavelength produced. The difference between the three forms is basically in the depth of penetration through the paint film and the amount of excitement in the molecular structure, which in turn produces heat. The penetration through the paint to the
substrate is much greater with short wave than with medium and long wave. This is key to the success of short wave paint curing, as a two-way cure is produced. The coating is bombarded with infrared producing heat, but the temperature is held back while solvent or water evaporates. The molecules are also excited in the substrate and this heat is transferred back through the paint via conduction. This is why painters experience good sandability of primers after applying short wave infrared. Less penetration of energy can result in primers being described as “cheesy,” i.e., not fully cured and will clog an abrasive paper or disc. Long wave infrared is not normally used in refinish as the surface heating effect can induce skinning and subsequent solvent popping. Medium wave emitters come in various forms, including tubular fused quartz and reflector heating lamps. Catalytic infrared also falls into this part of the spectrum. The temperatures achieved with medium wave are generally higher than with long wave. Medium wave infrared is more efficient than long wave and was commonly used in automotive paint curing applications as
well as adhesive curing, solder reflow for printed circuitry and moisture removal. As medium wave generally produces a slower heat build the use of a half power timer is not required. Short wave infrared is by far the most efficient form of heat in the spectrum, which is evident in the wide variety of industrial and research applications it is used for. Short wave emitters include standard air-cooled equipment, spot heaters, watercooled units and high-intensity units using tungsten halogen emitters. Mobile (short wave) infrared is by far the most efficient method of curing paint for local panel repairs. Mobile infrared is not out to compete against the oven, but to complement it. For example, why crank up an expensive oven to heat the whole car when one only needs to heat a door or fender? Infrared will do the job for a fraction of the cost in less than a third of the time. The cost saving over the year to the infrared user can be significant. Most local repairs have filler, glaze, sealer, primers and base/clear applied. Even when the vehicle receives a full re-spray, infrared spot repair has a dramatic effect in the preparation area, as primer curing is the most common application. Infrared can even come into play after the shop has used the oven for a full re-spray. For example, even the best painter can get a run or sag in the paint job from time to time. The big problem is that this needs to fully cure so the painter can sand out the mistake or recoat. In most cases, you’ll be looking at the next day to complete the repair. That means additional costs, not to mention the bottleneck it will cause in the shop. Infrared, however, can cure the area hard in 10 minutes, allowing an immediate flat off. These points relate to the collision centre with an oven facility, but there are even more benefits for the air drying shop. The faster a quality cure, the less contamination time there is. Peter L. Phillipson is Sales & Marketing Manager (IR) for B-Tec Systems. APRIL 2016 COLLISION REPAIR 61
Infrared curing systems are becoming more popular throughout the collision repair industry.
SEEING INFRARED Infrared curing systems may save you time and money.
By Dylan O’Hagan
I
nfrared curing technology has existed for a long time, but what’s new is how it’s being used, according to President of Hedson Technologies North America, Mike Bertrand. Hedson Technologies is a Swedish company that has been around North America since 1998. The company markets and sells infrared curing products through brands like IRT and Trisk. Bertrand says collision repair shops use infrared curing more than before and now use them through the entire shop. “Infrared units now are entering that spray booth area, so it’s a much more complete system. You can use the infrared not only in the prep area with your primers and fillers, but all the way through,” he says. “These larger systems that fit into the spray booths are interlocked with spray booth operation creating speed from A-to-Z through the shop.”
Infrared technology has been around since the First World War, when it was used to cure paint on tanks and ships. Since then, the technology has been used in more diverse ways such as photography, guiding missiles and even night vision. Infrared is one of the best way to dry paint on a car quickly and effectively. This is because it cures in both directions. “ The technolog y works in that it penetrates the paint layer, generates heat from two or three millimetres below and dries from bottom up,” says Bertrand. “You get a thorough cure and a high quality finish. It’s efficient in terms of energy and speed, as well as offering a high quality, thorough cure.” Reflector panels are also used with infrared curing systems. These panels are used to focus heat and energy, and can vary how well they focus based on the reflector material. For example, IRT
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uses something called free-form reflector technology, which uses computers to optimize ref lector surface and bulb placement, spreading heat evenly. Infrared curing systems are easy to use, according to Bertrand. Automation, he says, have come into play more and painters can work on other jobs as the system paints parts of the car. “With the sophistication of the controls on the newer units today, you highlight the panels of the car you want to cure,” he says “The arch will pull out into the spray booth, light up, cure those areas, park itself, and you’re done.” T he underst anding t hat inf r are d technolog y can generate greater productivity in a collision repair facility is becoming more widely known. Matt Gibs on is t he President of Flat line Spraybooth Specialists, a company that services and distributes infrared curing
“
WHAT YOU SEE IS WHAT YOU GET WITH THE INFRARED. – MIKE BERTRAND, PRESIDENT OF HEDSON TECHNOLOGIES NORTH AMERICA
systems. He says more shops are recognizing the impact that infrared systems can have on their productivity. “What’s making it more appealing is that everyone is seeing the value in infrared technology as the quickest way to cure their paint,” says Gibson. “It’s allowing customers to have quicker throughput.” Bertrand echoes Gibson and says the industry is very concerned today about key-to-key time. Shops want to keep cars for as little time as possible and infrared curing is a way to speed up the entire shop. “There is a groundswell of interest in infrared curing as people see the actual benefits,” says Bertrand. “Mainly it’s the speed.” Shops can see improvement in more than just speed. According to Bertrand, infrared technology has three benefits over other paint drying methods. “Productivity gains are number one. There’s greater speed through the shop, reduced cycle time, and reduced key-to-key time,” says Bertrand. “Number two is energy efficiency, and number three is the quality of the repair. What you see is what you get with the infrared. If there is going to be any kind of flaw, you’re going to see it right there.” It is also an investment, according to Bertrand. He pointed to energy savings and the amount of time that can be saved by using infrared technology through an entire shop. “If you’re going to make a $5,000 investment, we can show just in time savings alone you’re going to pay your system off in no time. After that, it’s just a money maker.” APRIL 2016 COLLISION REPAIR 63
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TECH TALK
SCAN
DAMNED! Mike Anderson on stage at the CCIF Cars & Tech Showcase. During his presentation, Anderson presented several anecdotes illustrating why scanning is an absolutely necessity.
It’s essential to protecting your customers and your business. By Mike Davey
T
he trend towards greater vehicle complexity continues. Advanced materials continue to proliferate. High-strength steel is now common and the use of aluminum is increasing. Advances in carbon fibre composite manufacturing are bringing the price down and car companies will start using it more and more frequently as the costs dip even lower. However, it’s not just construction techniques and materials that are becoming more advanced. The proliferation of sensors and computers in a modern vehicle means that a progressive collision repair facility must be prepared to deal with technology that simply can’t be assessed with the naked eye. That’s part of what makes scanning so important in modern repair.
Mike Anderson of Collision Advice has been beating the drum for thorough scanning of all vehicles for some time now. He says it’s essential to performing a proper, safe repair. “The scan needs to be done during the estimating stage so you know what you’re dealing with,” he says. “You need to scan again, after the repair, to make sure nothing was missed.” The lights on the dashboard no longer cover all the “incidents” occurring. There are numerous codes that will either never show on the indicator lights or won’t show up until long after the car has left the collision centre. Not scanning means the liability can land on you. As Anderson says, “You need to do a prerepair and a post-repair check. You need
to find out what you’re missing. There are codes that need to be cleared that don’t show up as warning lights on the dash. You need to know those.” The beauty of scans, both pre- and postrepair, is that it helps to show what is the collision repair facility’s responsibility to repair and what is not. This is especially important when it comes to pre-existing malfunctions in the vehicle. “There may be damage or malfunctions that had nothing to do with the accident. A thorough scan will show you not only what the fault is, but when it occurred, as some vehicles have what is referred to as ‘freeze frame’ data,” says Anderson. “The shop and the insurance company shouldn’t be on the hook for a fault that had nothing do with the collision. Without scanning, there’s APRIL 2016 COLLISION REPAIR 65
TECH TALK
An AsTech2 scanner produced by Collision Diagnostic Services (CDS). These tools can scan any vehicle and upload the information to CDS servers where it is run through factory scan tools. These help to spot potential trouble spots and give a guide to repair procedures.
Be prepared to deal with
TECHNOLOGY
that simply can’t be assessed with the naked eye. really no way to tell if a sensor had been malfunctioning for weeks or even months before the crash.” Anderson isn’t speaking hypothetically. He’s seen this happen on numerous occasions. He’s also seen cars leave a repair facility, only to come back in a short time frame, with “damage” that the motorist claims is the shop’s fault. “The driver doesn’t even need to be dishonest for this to happen,” he says. “They come pick up their car and a week later something goes haywire. They’re going to blame the repairer, because they didn’t know it was at fault either. Doing those scans means you have a record of what needed to be done, when it happened and what was done to repair it. You can prove that you followed OEM procedures.” With that said, not all scanning tools are created equal. You can pick up a cheap automotive scanner almost anywhere these days. No matter how much you spend, you’re not going to get the same results as you would with a factory scan tool. Unfortunately that can be a massive expense. Anderson mentions the AsTech2 as a scanning device. “The thing about the AsTech is that it gives you every factory scan tool in one unit,” he says. “You scan, it uploads to the cloud and they give you the results from their factory scan tools.” The AsTech2 is manufactured by Collision Diagnostic Services. We spoke with Jake
Rodenroth, the company’s Director of Client Services on how the tool works. “It offers OEM scans that can identify any and all existing issues,” he says. “This allows shops to create a full repair plan and order all needed parts before the repair starts. That’s going to save you time. You scan the vehicle and upload it. We run that through our factory scanner, then our master technicians give you the procedures you need to repair it.” Rodenroth notes the post-repair scan may prevent headaches as well. “Doing your completion scan gives you, the insurer and your customer peace of mind,” he says. “It confirms that all the work has been completed, and trouble codes have been reset. That way you’re not looking at customers coming back in a week, complaining that something was missed.” Most repairers will agree that scans, both pre- and post-repair, can help them but there is often a concern that insurers won’t want to pay for it. The answer is that it’s not just a good idea, it’s often recommended by the OEM. The question will often arise, “Is a scan really needed in this situation?” “Some insurers will question whether or not a scan is truly needed in some cases, for example in a crash that wasn’t severe enough to activate the passenger airbag. The fact is that a lot of manufacturers require the passenger airbag sensor to be calibrated after any collision. It’s not just a matter of seeing what went wrong. You need to
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recalibrate the sensors as well. If the weight sensor is off by, say, 10 lbs., it can create a very dangerous situation for a child sitting in the passenger seat.” This is vital. Uncalibrated or miscalibrated sensors can lead to enormous trouble down the road. Even relatively minor fender benders may mean that sensors need recalibration. “Modern bumpers are full collision and accident avoidance features, such as blind spot monitors,” says Anderson. “You’ve got to make sure they’re in perfect working order before you send that car out. Scanning pre- and post-repair is the only way to make sure you’re not liable.” This is the new reality. Scans are absolutely necessary to protect your customers and your business. Another thing collision repair shop owners need to keep in mind: “This is going to present liability and legal issues for OEMs. If they direct the car to a shop, if they say, take ‘that one here,’ they take on some liability,” says Anderson. “They’re going to be making sure approved shops can do the work. But that brings with it legal issues.” Could the future be one in which the OEM responds to an accident faster than local EMS? It seems the technology as it exists could allow this to happen. The complexity of the average vehicle is exploding, and appropriate procedure and policy needs to be implemented for collision repairers to deal with it effectively.
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Axalta launches Axalta Learning Campus
Training is frequently needed in collision repair, but despite strides made in recent years it can still be difficult for some repairers to access. A new initiative launched by Axalta Coating Systems promises to help relieve some of that difficulty. The company has just announced the launch of the Axalta Learning Campus in Canada. It is a web-based portal that serves as a gateway to Axalta’s Learning and Development programs. Through the portal, repairers can take courses online through Axalta’s library of training programs. The portal also enables repairers to register for live technical training sessions at one of the company’s Learning and Development Centers. There are three Axalta training locations in Canada. They are located in Ajax, Ontario; Pointe Claire, Quebec and Vancouver, British Columbia. The company also operates eight training centres in the US. Classroom Axalta has recently launched the Axalta Learning Campus in Canada. The web portal allows repairers to take courses online and to register and online courses are offered in English, French and Spanish. for courses at the Axalta Learning and Development Centers. “We are thrilled to extend the power of the Learning Campus to customers in Canada,” says Patrice Marcil, Axalta’s North American Learning and Development Director. “The convenience of online course registration and learning modules in three languages reinforces our commitment to provide world-class learning and development programs in North America.” A statement from Axalta says the company’s Learning and Development programs are designed to boost customer performance by developing skills and knowledge to help eliminate waste, reduce costs, keep cycle time to a minimum and increase retention by investing in employees’ careers. Instructor-led classroom programs are offered at Axalta Development Centers in Canada and the US, virtually in your own office or facility, online through axaltalearningcampus.com and through customized, blended learning methods.
Rotary Lift introduces ‘90 Second Know How’ video series Rotary Lift has introduced a new video series called ‘90 Second Know How.’ The videos even feature a stopwatch in the corner.
Got 90 seconds to spare? Rotary Lift wants to answer your questions regarding vehicle lifts, and the company promises it will take less than two minutes. The company is drawing on its more than 90 years of experience designing and manufacturing vehicle lifts to answer frequently asked lift operation, maintenance and installation questions in a new video series dubbed “90 Second Know How.” These short videos cover light-duty and heavy-duty lifts, including two-post lifts, four-post lifts and inground lifts. “Rotary Lift’s customer service team gets more than 190,000 phone calls a year,” says David Fischmer, Rotary Lift’s Marketing Director. “Our customers are busy, and when they need help, time is money. But when a customer isn’t standing at the lift when calling, verbal explanations can be difficult to convey and hard to understand. This new video format is like being in the customer’s shop to demonstrate the answer, in just 90 seconds.” The first six videos are online now, with additional releases scheduled monthly. The first six videos in the 90 Second Know How series are currently available at rotarylift.com/training-videos. The company also offers more in-depth videos at rotarylift.com/videos. 68 COLLISION REPAIR COLLISIONREPAIRMAG.COM
I-CAR debuting two new courses in April Two new I-CAR courses are headed our way in April. Both courses are hands-on and are related to welding or attachment methods required by various OEM procedures. The courses are part of I-CAR’s Hands-On Skills Development series. According to I-CAR, these courses provide unique, personalized preparedness for both facilities and technicians to stay competitive. Designed to ensure end-to-end shop readiness, a statement from I-CAR says Hands-On Skills Development gives shop owner’s peace of mind and technicians a chance to hone their skills based on their own personal level. Hands-On Skills Development combines the intellectual and experiential sides of learning, resulting in a holistic learning experience. The first of the new courses is Rivet Bonding (RVT01). With the Ford F-150 and other vehicles requiring this attachment method, there is a need for technicians to become familiar with this repair process. The course provides hands-on practice and coaching from an experienced instructor. The second new course debuting in April is MIG Brazing (BRZ02), which provides an in-shop, hands-on training that prepares collision repair facilities and technicians for the shift to high-strength steel (HSS) and ultra high-strength steel (UHSS) vehicles entering the market. According to I-CAR, an in-shop pre-course capability and readiness assessment combined with instructor-led practice ensures shops are ahead of the curve on this technology.
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CIIA AND ICOAT TEAM UP FOR TRAINING Collision Industry Information Assistance (CIIA) and aftermarket supplier icoat [Innovative Coatings] have teamed up to offer training. The organizations have issued a joint announcement noting that, starting this spring, repairers can take the Basic Estimating course, the Certificate of Qualification exam prep course (to help unlicensed techs pass the Ontario College of Trades certification exam), as well as the Positive Approach in
the 21st Century and Production Management courses and other training. CIIA member shops continue to receive a discount on training and those attending icoat courses receive a $200 product voucher good for products from any icoat warehouse in Ontario. Rebates of up to two-thirds the cost of the course are available in some cases. Please register by calling 1-855-GO-ICOAT.
Mirka sales team takes PPG’s White Belt training
I-CAR presents trends and tech at Centennial College
Some of the assembled stakeholders at the Technology and Trends for 2016 course held at Centennial College.
The Mirka sales team at a recent meeting. The company’s sales force has recently completed PPG’s ‘White Belt’ training to better understand the needs of their customers.
Repairers know Mirka as a provider of sandpaper and abrasives to the collision repair industry. So why would the company’s staff take the MVP Lean White Belt training session from PPG? It’s actually a simple answer: to get to know the needs of their clients better. The MVP Lean White Belt training session was hosted by Frank Lefebvre of PPG Automotive Paints in St. Sauveur, Quebec. John Booth is the President of Mirka. In a recent conversation with Collision Repair magazine he explained why he had his people—who don’t work in a shop—take the course. “It’s important for us to not just walk into the shop and sell sandpaper. Our people have to know what that company does,” says Booth. The course provides an overview of how facilities typically run, and sets out how a collision repair centre can run a leaner business. The White Belt session is a unique part of a larger training program. Typically, the technicians and other “on floor” people in a collision repair facility taking the PPG training program go through the Green Belt course, which is three full days of training in lean production techniques and Six Sigma concepts.
Ongoing training is crucial to delivering quality repairs, but there are still many operators who haven’t received this message. A recent event hosted by I-CAR and Centennial College in Toronto has helped to change that. I-CAR Canada offered a free class on “Technology and Trends for 2016” to insurers and repairers in the Toronto area. A total of 112 stakeholders registered for the course, which took place in the auditorium at Centennial College’s Ashtonbee Road campus. They came to get the latest information on new materials, electronics and repair procedures. The class was led by Saeed Ahmed, one of North America’s most prolific I-CAR instructors. Ahmed noted that many in the class had not participated in I-CAR training in some time. “This course is a must for our industry,” he says. “The changes facing us now are coming fast and furious, and training is absolutely critical to stay in, and succeed, in business.” I-CAR launched the Trends and Technologies series in 2010 and the class has been updated on a yearly basis since that time. Andrew Shepherd is the Executive Director of I-CAR Canada. He says there are plans to follow up the Toronto event in other cities. “In some of the major metropolitan areas like Toronto and Vancouver, there are a lot of shops that are not taking I-CAR courses,” he says. “We don’t know what kind of training they are doing, but we suspect that when it comes to general technical updates, they’re not doing any training. The Technology and Trends 2016 course is perfect for showing why you need training.” Shepherd says the Technology and Trends series is consistently one of I-CAR’s most popular courses. APRIL 2016 COLLISION REPAIR 69
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Fire causes damage at Chadwick’s Towing A recent fire left Chadwick’s Towing of Cobourg, Ontario, grappling with over $400,000 in damages. Rob Chadwick, owner of Chadwick’s Towing, said the damage was done to a 2006 heavy hauling tow truck that had functioned as a show piece. The vehicle, which was the only of its kind from Toronto to Montreal,
had only been in active use since 2008. Chadwick told local news reporters that he felt the fire was suspicious, as the truck had been stored in a locked and fenced compound for the two days before the fire. Firefighters have yet to determine a cause for the blaze, although vandalism is being considered.
For advertising inquiries, please contact Mike Davey at 905-549-0454 or advertising@collisionrepairmag.com.
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The photo at left shows the extent of the damage caused by the fire.
Nova Scotia towing operator reports two vandalized trucks After 18 years as an active community member in New Victoria, Nova Scotia, Louie Syms, the owner of JL Syms Towing and Recovery says he woke up one day to find something disturbing sitting on his lawn. Syms says he found eight tires slashed on two of his service trucks. That’s bound to upset anyone, but Syms says it’s particularly upsetting, given how he and his business have given back to the community for the last 18 years. “I support practically everything; I support three firefighting departments around here all the time. I supply cars for Jaws of Life practice and have for years,” said Syms. Syms believes he was targeted and said he has a hunch who did it, but can’t prove it. This isn’t the first time his equipment has been vandalized. At Sym’s other compound in River Ryan, he said he found smashed windows back in 2013. However, these incidents haven’t shaken his faith in the t o w i n g i n d u s t r y. W h e n a s k e d i f h e t h o u g h t i t h a p p e n e d
One of eight tires slashed by vandals at JL Syms Towing in Nova Scotia.
because he owns a towing company, he said definitely not. “There is nothing wrong with the towing industry, my son knows a lot of good people in the industry,” he said.
Cycle Caddy now available from Canadian Towing Equipment A new motorcycle dolly is available through Canadian Towing Equipment. According to the company, the innovative Speed Ramp on the Cycle Caddy makes loading a motorcycle smooth and nearly effortless. The Cycle Caddy stores in a folded, compact position, saving valuable room in the tool box. The Cycle Caddy not only stores easily, it also assembles easily and has easy to follow instructions printed right on it. The Cycle Caddy can support a motorcycle up to 900 lbs. and is manufactured in the United States. It features steel construction and a black finish. For more information, please visit cantow.ca.
APRIL 2016 COLLISION REPAIR 71
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CONTENTS Recycling News....................73 - 76
news resource
LKQ to acquire Pittsburgh Glass Works, Tanvir speaks about the evolution of online recycled parts distribution and much more.
LKQ diversifies even further with latest acquisition: Pittsburgh Glass Works By Jeff Sanford
HOLLANDER’S INPART TO POWER ONLINE PARTS MARKET
By Jeff Sanford
Keystone to enter into the aftermarket parts distribution segment,” writes Brochmann. “Automotive aftermarket distribution is still rather inefficient globally, and LKQ is identifying segments where they can leverage their existing distribution network to streamline operations, strip out costs and generally leverage their economies of scale.” The acquisition will also help the company diversify beyond its original core business of distributing recycled automotive parts in North America. This diversification is a publicly stated goal of the company. LKQ was founded in 1998. That year it had revenues of just $31 million. Today revenues are $5 billion. But the company sees growth and diversification as important to preserving the growth. In its 2014 annual report, the company noted that one of the risks to its
The advent of online marketplaces has changed many industries. This has been true in the case of providers of recycled parts in North America, but get ready for the next level of connectivity in the parts market. In a recent conversation with Canadian Auto Recyclers magazine, Tanvir Arfi, President of Service Maintenance Repair and the InPart platform at Solera, took time out to talk about the evolution of online recycled parts distribution. Solera is the parent company of Hollander, which distributes products aimed at the recyclers market. Arfi outlined some of the advantages now flowing to recyclers as a result of new levels of digital connectivity. “The value in this for the parts suppliers is the connectivity. Traditionally a lot of recyclers have served the people who walk in the front door at the physical location, or call in by phone. But what we’re doing for the recyclers is opening the door to the wider world, to the global
Continued on page 74.
Continued on page 75.
LKQ started off as a recycled parts provider, but acquisitions over the last decade have turned the company into a broad-spectrum collision vendor. The latest deal, to acquire Pittsburgh Glass Works, sees LKQ moving into automotive glass.
LKQ has announced it will acquire Pittsburgh Glass Works (PGW) from private equity firm Kohlberg & Co. and PPG Industries, an acquisition that continues the company’s recent diversification efforts. PGW is a major player in the automotive glass manufacturing business. The price of the purchase is a serious $635 million US. At time of publication, that converts to about $848 million CAD. Nate Brochmann, an equity analyst with William Blair & Company, likes the deal. In a note distributed to clients he outlined the reasons for optimism, saying that LKQ’s growth strategy for some time now has been focused on identifying acquisition targets with strong synergies. “This is a continuation of the strategy witnessed as far back as LKQ’s acquisition of
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news resource
LKQ acquiring PGW ... continued from page 73.
business is the potential reduction in car accidents that could follow on the arrival of connected car technology. Recently LKQ announced it had bought the holding company of RhiagInter Auto Parts Italia, a company that operates 247 distribution centres and 10 warehouses from which it sells used parts to customers in Italy, the Czech Republic, Switzerland and seven other European countries. The used auto parts distributor will spend $1.14 billion in a deal to boost its exposure to the European market through this acquisition. “With this acquisition, we further solidify our leading market position in Europe and enhance our global diversification strategy,” Robert Wagman, President and CEO of LKQ, told analysts at the time. Bradley Mewes is an analyst with Supplement, a company that specializes in collision repair consulting. According to Mewes this was a significant deal. LKQ is moving beyond its North American roots to become a truly global company with multiple sources of revenue. “You have to look at what LKQ did in Europe. That’s a huge acquisition for them. They are becoming the multinational of aftermarket parts,” said Mewes. “They’ve been very open in saying they see Europe as a huge growth opportunity.” LKQ CEO Wagman delivered an address at a conference in Troy, Michigan recently. In 2011 the company had no revenue in Europe, but under Wagman’s leadership, the overseas diversification strategy now sees European operations representing more than 27 percent of LKQ’s revenue. “Now we’re projected to do $1.4 billion,” said Wagman. He went on to note that LKQ is the number one supplier of parts in the United Kingdom and, in the spring of 2013, bought Sator Beheer BV, a leading distributor of auto parts, tools and equipment headquartered in Schiedam, the Netherlands, for approximately $268 million. The company has also launched a joint venture in Australia, where the company partnered with a leading insurer to develop alternative auto parts business there and in New Zealand. Overall, since 2012, LKQ has acquired 30 companies. Potential future markets, according to Wagman could include Russia, India, and China. The company is also diversifying across sectors. In 2003 an insurance company recommended that LKQ begin to provide collision repair facilities with original aftermarket parts, not just recycled parts. “It was a game-changer for us,” Wagman reportedly said at the presentation. “They wanted to be able to say to a shop, ‘Here’s a pallet with everything you
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need.’ It was brilliant out-of-the-box thinking. They wanted us to be their delivery agent.” Soon after, LKQ acquired Keystone Automotive Industries, the largest distributor of aftermarket parts in North America. This was a key acquisition for the company. “We bet the company with that purchase,” Wagman reportedly said during his Flint presentation. Judging by the company’s success since that time, the Keystone acquisition was definitely a smart move. Since then, LKQ entered the remanufactured engine business in 2010 with the purchase of two companies. The company has also entered the paint supply business by acquiring AkzoNobel Coatings’ US paint distribution business. Most recently, the company acquired PGW. According to Brochmann’s analysis of the deal, PGW brings to LKQ a “new manufacturing component to the business. PGW operates through roughly 120 distribution branches serving over 7,000 automotive glass retailer shops across North America.” “It certainly fits with their strategy to diversify the business and expand into adjacent verticals,” said Mewes regarding the PGW deal. As headwinds from scrap steel prices and foreign exchange work to limit near-term results the diversification will help stockholders, who will by heartened by attempts to continue the growth. The growth has been reflected in a rising stock price. When LKQ went public in 2004 shares were $13. There have been three share splits along the way. Taking those into account the original shares have grown to $270. Remarkable growth by any measure. Brochmann believes the five-year outlook on the company remains bright as a result of the diversification strategy. “LKQ’s recent acquisitions of Rhiag and PGW (both expected to close in the second quarter) should help expand the company’s market potential and provide nice cost synergies and cross-selling opportunities,” he said. “The underlying operating environment remains favorable in the United States with increased miles driven, more parts per car and a recent increase in the new car SAAR (seasonally adjusted annual rate – Ed.). In addition, we believe that LKQ can improve its profitability over time through its internal initiatives in North America and increased scale in Europe.” For more information on LKQ, please visit lkqcorp.com.
news resource
Hollander’s ... continued from page 73.
market via eBay,” says Arfi. For Hollander in the eBay marketplace, the parts suppliers are usually recyclers, independent aftermarket parts sellers and dealerships. The buyers are often mechanical repair shops, collisions repair centres and the
“do-it-yourselfers.” “This last group is quite a large chunk of the market, says Arfi, “Frankly, it’s a very important segment.” The advent of this online marketplace is changing the nature of the business of
recyclers. “If you look at recycled parts on eBay, it’s a huge market. Parts providers are connecting with the consumers of parts ... that’s what this product does,” says Arfi. Those on the platform now have their inventory exposed to a global buyer base in approximately 190 markets. It’s difficult at first to fully comprehend what this really means, simply because the concept is so vast. Recyclers can sell worldwide, and there are numerous markets hungry for quality recycled auto parts. Regions of the world where the auto market is less developed than in North America have an opportunity to find parts that may not be available locally. Those in North America can ship to the rest of the world. It is an amazing shift in the basic dynamics of the market. “There are 12 million unique visits per month from people looking for parts on eBay, according to comScore data. We are very, very excited about this relationship,” says Arfi. “This is part of the innovative spirit in Solera. For a long time, recyclers have been focusing on their traditional markets and supporting customers that way. But as the e-commerce market expands, we have built on this relationship with eBay. We have leveraged that relationship, and that has brought a lot of value to the recyclers.” Coming down the pipe is another exciting evolution in the marketplace. Giving a glimpse of the future, Arfi notes that Solera/Hollander will “very soon” launch a service connecting recyclers to repair shops. “Generally repair shops buy from independent aftermarket, but we’ll be opening our recyclers into that part of the repair market. For those in that market that want a recycled part, that’s going to be available soon,” says Arfi. “I believe this is going to be a massive opportunity.” The coming platform is expected to have hundreds of recyclers connected to 55,000 repair facilities across North America. “Each shop will get three or four passwords for their mechanics. There are already 200,000 techs using a Solera product in those shops. The transactions are expected to be in the millions,” says Arfi. “The connectivity is amazing.” F o r m o re i n f o r m a t i o n , p l e a s e v i s i t hollandersolutions.com.
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RECYCLING I
ADVANCEDTECH Collision repair is more complex than ever before. By David Gold
T
he first Canadian Collision Industry Forum of 2016 was much different from all previous events. I have always attended because I wanted to learn about the issues our customers are facing. This year had a much different meaning from my perspective. The speakers were very candid about the future of the industry and it didn’t take long for a message of rapid change to be expressed. This new era of vehicle technology is a game changer for the collision repair industry. While I have always appreciated the complexity of repairs, I could have never imagined the technological impacts that
industry. Repairers will need to have access to factory scan tools for even the lightest of damage. Even if the damage can’t necessarily be seen! The audience was informed that factory scan tools will be required to be used before they start the repairs and then again after the repairs are completed. The level of professionalism and know-how by collision repairers is not optional going forward and it means that there will, by all accounts and purposes, be a weeding out of the industry on a scale projected by one presenter to be about 50 percent less collision repairers in Canada in the next five years. Even more so, those that will exist will be specialists in a
THE LEVEL OF PROFESSIONALISM AND KNOW-HOW ... IS NOT OPTIONAL GOING FORWARD.
new vehicles will have on the collision repair industry. Unless you are connected (pun intended) you won’t meet the OEM standards in the repair process. Innovation cannot be halted. Many features are highly complex to understand and work with. In the past, CCIF has expressed many of the issues repairers face in their day-to-day working environment but this year there was more talk about how everything and anything needs to be better than “market average” to survive. The level of scrutiny seems to have escalated. Customers demand more features in their vehicles, but they also demand to be more informed than ever before about the repair process. Since consumers are much more informed than ever before, the audience was clearly told that collision repair centres need a blend of both DRP programs and in the future will also need to be OEM certified in order to thrive. This was the first time I had ever heard this before and I can tell you that those industry stakeholders that were sitting at my table all looked at one another. We knew the collision business had changed and would never be the same. As an auto recycler, this may have been the first time I could honestly say that the collision repair industry may actually be more complex than our 76 COLLISION REPAIR COLLISIONREPAIRMAG.COM
particular brand as the techs in the field will require the necessary and customized training to be able to work on those types of vehicles. Collision repairers may not be able to perform all repairs for all types of vehicles and this is a trend we are told to expect to see grow exponentially just as the technology on our vehicle fleet advances. All of these nuances in the vehicle industry in general may be one reason why there was such an elaborate level of involvement from key industry stakeholders. This includes the insurance industry, which always participates and contributes, but for the first time the OEM presence was really felt as well. Included not only by way of sponsorships, but also in their participation in a “Technology Showcase,” for all for all of us to see firsthand how vehicles are evolving and how the repairs must evolve in parallel. It is really a privilege to be able to be a part of the CCIF each year to learn and grow. Kudos to all of the organizers for another great forum! CRM David Gold is the co-owner of Standard Auto Wreckers, with locations in Toronto, Ottawa, Port Hope, and Niagara Falls, New York. He can be reached by phone at 416-286-8686 or via e-mail at david@standardautowreckers.com.
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FINANCIAL INSIGHT
NEWPLAYERS Will auto dealers get into collision consolidation? ADVERTISER INDEX By Jeff Sanford
COMPANY
PAGE
3M..............................................19 AADCO Auto Parts...................74 AkzoNobel.................................4 ARSLAN....................................25 Assured Automotive.................32 Automotive Recyclers...............75 Auto Quip Canada......................8 Axalta...............................63,OBC BASF............................................7 Carcone’s Auto Recycling........55 Cardinal Couriers......................21 Car-O-Liner................................14 Car-Part.com.............................72 CAR-MS QRP.......................22,23 Collision 360.............................56 Color Compass.........................10 D&E Distributors.......................20 Dominion Sure Seal....................9 DV Air Systems....................37 Fix Auto.....................................35 Global Finishing Solutions.......33 Garmat.......................................18 Hollander....................................77 Impact Auto Auctions...............70 LKQ Sonshine............................71 Krown........................................30 Martech Servies........................13 Mercedes-Benz.........................53 Monidex.....................................44 Monster Auto Wreckers.............74 MTB Transit.................................17 Nace Expo.................................64 Ontario College of Trades................47 PPG...........................................2,3 Peter Kwansy Inc........................49 Polyvance...................................28 Pro Spot International................31 Rondex.......................................15 Sherwin-Williams.......................12 Spanesi......................................11 Steck Manufacturing..................16 Stark Auto Sales........................67 Thorold Auto Parts.....................24 Tiger Auto Parts........................59 Valspar.......................................79 Wurth Canada............................38
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C
an the Canadian collision repair industry stand up and take a bow? In the first week of March news broke that Mike Macaluso, the CEO of CARSTAR Canada, would take over as the head of the combined US and Canadian arms of CARSTAR. The appointment marked the Canadian operation as a standout organization. Driven Brands, the company that
undertaken by the consolidators,” said Romans. Consolidators will build new stores or convert existing buildings to collision repair centres in areas where they need a presence. “Because they’ve acquired quite a bit over the last few years, the Big Four need to focus on digesting these chains and getting them to operate as one large network. The strategy going forward will be one of tucking in, and shoring up the market
THE NATURE OF THE CONSOLIDATION
TREND WILL CHANGE IN 2016. owns CARSTAR, likes the CARSTAR Canada field structure for insurance that allows a CARSTAR representative to work with an insurer counterpart at the local, middle management and corporate level. Macaluso is going to be busy over the months and years to come. What kind of market environment can he expect to find in the US? A recent conversation with Vincent Romans, founding partner of The Romans Group, brought some big trends to light. Romans explained that although it will continue to be “fast and aggressive,” the nature of the consolidation trend will change a bit in 2016. Romans explained that, in 2014 the Big Four US consolidators (Boyd, Caliber, ABRA and Ser vice King) acquired 28 multi-store operators (MSOs) involving 261 locations and $964 million of revenue. That continued i n 2 0 1 5 at a l e ss f re ne t i c p a c e as valuations increased. The race will change again in 2016. “The huge number of acquisitions saw valuations of shops soar, so the cost of acquisitions increased on a valuation basis. Operators will find it a bit cheaper to build from the ground up. We’ll see more greenfield and brownfield activity
clusters that the four big consolidators have. I see that being the key strategy of 2016, which is a bit different from t he l ast fe w ye ars, w hich s aw big acquisitions to ensure market presence,” says Romans. “The consolidators aren’t going to pay those values if they can avoid it. But they are going to put on market share and market entrance.” Romans also points out that “There could also be new entrants into the industry,” from some of the companies around the periphery of the collision sector. Many in the industry sat up and took notice when Warren Buffett’s Berkshire Hathaway bought up the huge dealership group, Van Tuyl. That organization has several dozen collision re p a i r s h op s i n it s or g a n i z at i on . “Nothing is stopping dealerships that have their own body shops from trying to buy up independents,” says Romans. “They have business that touches on this, and I could see that accelerating the consolidation trend.” Interesting times, indeed. 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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