metal mayhem: what you need to know about the palladium spike
Special edit ion Focus on Family
back to class
3D Products Canada dominates Canadian market share with training
grudge match
How to win over even the most reluctant customers
family feud
How to fire family members and deal with other familial issues in the business
business bloodline Three generations of D’Alessandros have made the family shop into an innovative model for success
Plus Repair services on the
go, immigrating into the Canadian industry, what students think of collision repair and much more! Volume 17, Number 2 l April 2018
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$7.95
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Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
CONTENTS
ON THE COVER 27 Kindred calling The D’Alessandro family shares a passion they’ve passed down for generations.
Volume 17, Issue 2, April 2018
features 30 bodyshops without borders Immigrating into Canada through the auto repair industry 39 Grudge purchases How to win over reluctant customers 49 MOBILE REPAIRS Is the cost worth the convenience? 53 Expectation vs. reality Automotive students reveal their true feelings about the industry
36
NEWS
The kins and outs of managing your family.
80 COLLISION REPAIR 89 Towing & Recovery 91 RECYCLING
departments 6 Publisher’s page by Darryl Simmons Why we need open communication.
44
3D Products Canada talks training as a way of moving into the industry.
57
12 Who’s driving? by Jay Perry Turn profits through investments. Why you should bring family into the business.
On the Cover: The D’Alessandro men from CSN - 427 Collision. Photography by Kristina Smith.
14 training by Andrew Shepherd Meeting Canada’s training needs. 16 SAAR says by Tom Bisonette Trouble is brewing in the industry.
YOUR ONLINE SOURCE
18 Prairie view by Chelsea Stebner Get ready for new technology.
Canada’s collision repair information resource. New articles and top news stories daily. Visit www.collisionrepairmag.com.
20 Atlantic Insight by Kelvin Campbell Are OEM certifications worth it?
correction: Last issue, Leigh Peters’ company was referred to as “LG Peters.” The company is titled L.J. Peters Warehouses Ltd.
HAVE YOUR SAY. We welcome your comments on anything you see in Collision Repair magazine. Send your feedback to editor@collisionrepairmag.com.
22 point blank by Sam Piercey Fair income for fair repairs. 96 Recycling by David Gold OARA’s new community campaign. 98 FInal word by Jeff Sanford
arpil 2018 collision Repair 5
publisher’s page
Standup,Speakout The industry needs everyone’s help. Get involved
A
producers of the show, as well as blasted via social media to every news outlet that ran similar stories, the industry—our industry—voiced its displeasure with the inaccurate portrayal. Letters, calls and emails flooded into our office supporting our stance and making thoughtful observations about the state of affairs. More importantly, they made it clear that there are deep problems in voicing concerns. There isn’t just an elephant in the room. There is a herd. Why is it, we wondered, that everyone is so quiet?
We need to be frank about the issues that repairers feel pressured to avoid ception is reality and nothing made that more clear than an investigative television report by a national news agency, prompted by none other than a national insurer. Wow. Rather that working with progressive and legitimate repairers to solve an industry-wide problem, Aviva Canada chose to instigate and work with CTV’s W5 to ‘investigate’ alleged fraudulent behaviour. This was the antithesis of working together in partnership. The collision repair industry has made tremendous strides in improving its image, thanks to the fantastic work of so many industry people. But this is all for naught when an audience with jaded preconceived perceptions are led to believe repairers, mechanical and collision, are not to be trusted. Within the industry, we know this to be untrue, making these claims against us all the more frustrating. Our industry is packed full with reliable, quality repair facilities equipped with educated and engaged staff and owners. This huge portion of the industry does not seem to be getting credit where credit is due. There is a silver lining, however. Based on a letter penned by this magazine to the
6 collision Repair collisionrepairmag.com
DARRYL SIMMONS (647) 409-7070 publisher@collisionrepairmag.com ASSOCIATE EDITORS
By Darryl Simmons
long with the advent of spring, comes the promise of a brand new season. This isn’t just a moment to break out the garden spades and golf clubs, but a chance for our entire industry to plant the seeds of a new era in communication and trust. One of the biggest stumbling blocks in our industry right now is image. It is affecting our ability to attract young people into the industry, and on our labour retention rates. It is also shaping the consumer opinion. Unfortunately, as inaccurate as it is, per-
PUBLISHER
So, we ran a survey. The results revealed that nine-in-ten repairers feel pressure to hold their tongues due to fear that insurance companies might penalize them for going ‘off-script.’ One-in-three feel that same pressure from their peers in the industry. For the public’s perception of us to be meaningfully changed, we need to harness unheard ideas. We need to be able to be frank about the issues that repairers feel pressured to avoid. We need to be able to speak out. At the end of March, my team created Stand Up, Speak Out—a forum on our website where—either anonymously or not—collision repairers may speak without fear of retribution. Please check it out and voice your concerns at collisionrepairmag.com/forum. As the country begins to thaw out, let’s begin the conversation among ourselves. That’s the foundation of true partnership.
ERIN MCLAUGHLIN (905) 370-0101 erin@mediamatters.ca GIDEON SCANLON (905) 370-0101 gideon@mediamatters.ca CREATIVE DEPARTMENT MICHELLE MILLER (905) 370-0101 michelle@mediamatters.ca STAFF WRITER JEFF SANFORD jeff@collisionrepairmag.com VP Industry Relations & Advertising GLORIA MANN (647) 998-5677 advertising@collisionrepairmag.com Managing Director iMM/Director Business Solutions & Marketing ellen Smith (416) 312-7446 ellen@mediamatters.ca CONTRIBUTORS David Gold, Jay Perry, andrew shepherd, Chelsea Stebner, Kelvin campbell, tom bisonette, josh white, allison preston, tabatha johnson, Harland Goulbourne, Jeff mowat
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 without written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher. PRINTED IN CANADA ISSN 1707-6072 CANADA POST CANADIAN PUBLICATIONS MAIL SALES PRODUCT AGREEMENT No. 40841632 RETURN POSTAGE GUARANTEED Send change of address notices and undeliverable copies to: 455 Gilmour St Peterborough, ON K9H 2J8
“We acknowledge the financial support of the Government of Canada”
Collision Repair magazine is published by Media Matters Inc., publishers of:
NEWS
People on the move Spanesi Americas announced the hiring of Ron Coan as a spray products specialist. “I understand the importance and the value that a great spray booth can provide to a Ron Coan repair facility. Spanesi creates high-quality, high-performance spray booths that produce amazing results,” says Coan. “I’m ready to use the knowledge that I have accumulated throughout my career and work for a company that goes out of its way to help customers and painters. Spanesi is a great company with extremely knowledgeable people. I’m proud to be joining a team like that.” Spanesi chief operating officer, Timothy W. Morgan, says, “Ron’s experience on the paint side of the automotive industry is second to none. Adding Ron and his experience to the world-class team at Spanesi Americas is priceless.” Uniparts has announced the appointment of Anne Hall as territory manager and sales representative for GTA east and southeastern Ontario. Hall joins Uniparts with 30 Anne Hall years experience as an automotive industry professional. Mike Kaplaniak, vice president of Uniparts says, “We are very excited to have Anne on our team. Her industry experience, work ethic and knowledge of the area will be a great asset to our suppliers and customers in her territory.” Hall’s responsibilities involve growing and managing the Uniparts OEM supplier network, as well as ensuring the best-in-class service to all existing and future bodyshop customers. Anne is also responsible for supporting the ProgiParts users in her area. “I’m so pleased to join Mike and his Uniparts team and look forward to a successful future,” says Hall. Simplicity Car Care recently announced three new appointments. Ed Corbett joins as chief financial officer, and brings with him over 20 years of executive financial and opEd Corbett erational experience in hightech, software and consumer related companies. Prior to his title at Simplicity, Corbett held the positions of chief financial officer, chief operations officer and general manager for both public and private companies. “Corbett is highly experienced in strategic planning and raising capital,” says Domenic Ieraci, president of Simplicity Car Care.
Greg Taba has been appointed by Simplicity Car Care to the position of business development manager in Ontario. He brings more than 17 years experience in sales, business Greg Taba development and marketing to the company. His experience as director and business development manager includes helping several organizations build through organic growth and new account acquisition. “Greg is dedicated to educating and helping franchise owners achieve success by utilizing the proven Simplicity Car Care system. He is an advocate of the company’s vision to enrich the quality of life for collision centre owners and make car care simple and affordable for every vehicle owner in the world,” says Ieraci. Michael Lawther joins Simplicity Car Care as field conversion manager. He has more than 30 years of automotive repair experience, primarily in the glass industry. Matthew Previously, Lawther was Lawther the national process manager for mobile with Belron Canada’s service and delivery team. Lawther has experience working with franchising, technical training organizations, developing KPI dashboards, ‘customer delight’ and business. Lawther has also been directly involved in landing several National Fleet Accounts as well as drafting and adopting unprecedented service level agreements that included after-hours and Sunday services. Copart announced the promotion of Anthony Monas to eastern regional manager of Copart Canada. Managing director Steve Macaluso says, “Monas’ new role will include working with Anthony Monas our entire team to continue enhancing Copart Canada’s operations.” Monas served for four years as the general manager of Copart’s Toronto location. He will now be responsible for monitoring and providing support for Canada’s Eastern locations. “I’m grateful for this tremendous opportunity and I look forward to working toward the growth and development of Copart Canada,” said Monas.
8 collision Repair collisionrepairmag.com
READER INput
Sense and Nonsensibility Readers write-in responses to our industry analysis and comic writing abilities
Early spring in Canada is a fickle time of year, with snowfall, rainstorms and summery sunny days all on the meteorological agenda. Like the weather, our mailbox has received letters that can only be described as poles apart. First, a sober minded analysis of the state of the industry as OEM certifications become more and more common. The other is, we suspect, is a tongue-in-cheek note lamenting a recent plot twist in our long-running comic, Dr. Dent. Should the weather be sunny, we recommend sitting down to absorb the first, entirely sensible note. Should it be disappointingly grey and chilly, the second may warm the heart and lighten the mood.
Dear Collision Repair magazine, While perusing the February issue, I came across the “Certifiable Concern” column. Having run a collision centre for twelve years during which there were sweeping changes that affected everything from DRP relationships, to the buy in of banner relationships and the certification programs we currently have, I watched our business go from dismal, to incredible, to dismal again. Eight years ago, it was easy to stay afloat, so long as your shop had a long history of doing good business in a community. All of the insurers wanted your name on their list. Then banner programs came into play and, unless you were affiliated with a
10 collision Repair collisionrepairmag.com
national brand, you lost your DRP status. Some of these DRP shops were really qualified at the time, and some were not much more than a bunch of signage and monthly fees. We lost our steady flow of insurance work to the banner companies. It’s hard to compete without national representation from insurers. Now we are seeing what may be the next big change in the industry, and one that makes the most sense to me. Certification on an OEM level means that certified shops are the shops that should be repairing the vehicles. If you don’t have the tooling, training and technology to work on modern cars, how can you? Any shop that is repairing vehicles with incorrect equipment or repair methods should not be being paid by insurance companies—that’s just crazy. But it’s happening. Who can guarantee the safety of our customers? I’ve spoken with body repairers who have said, “well that should be good enough,” when talking about sectioning a frame in the wrong place, or welding with old methods on high strength steels. How about recalibrations? Airbag deployment dynamics? Vehicles that are not repaired correctly cannot react correctly in an accident. The world has moved on, and it’s time that we step up and do the right thing. Get certified or get left behind. Steve Knox General Manager CARSTAR Fredericton
READER INput
Dear Collision Repair magazine,
Spotlight on women in the industry
As a devoted reader of Dr. Dent, the cartoon which appears in your magazine, I have long-cherished opening up each and every issue of your estimable publication. As the nephew of a collision repairer and subscriber, I have been following the truly gripping story for more than a decade. It is, I admit, a guilty pleasure. In the latest issue, however, the story has done something that I view as unforgivable. Just as we were reaching the climax of the plot where Dr. Dent, having travelled to Mars and been given robotic tentacles, was about to foil a Martian plot to destroy the world, the good doctor awakens from his sleep. This revelation has retroactively declared the events of the past few years of comics to have been entirely fictional, even within the fictional plot of the comic itself. When Dynasty, the 1980s soap opera, did the same thing to eliminate the plot twists of an entire season, there were protests. While I suspect that the collision repair community is unlikely to find itself as stirred up by this controversy, I am writing to ensure that the staff of Collision Repair magazine understand that the cheap plot twist has been noted and that at least one fan is hoping for it to be reversed. James Smyth, General Manager Toronto, Ontario
Dear readers: In the coming months, Collision Repair magazine and its youth-oriented sister publication Bodyworx Professional magazine will be looking at the challenges facing women in the automotive repair industry, as well as the opportunities that are available to them. To do this effectively, we need to hear from women at every level of the automotive sector. If you would like to share your opinions, stories or concerns about being a woman in a profession traditionally dominated by men, we invite you to write in. Please note that we will reach out to anyone who sends in a sensitive story that is used or referenced in our coverage prior to publication. While we read every letter we receive, we lack the space to publish them all. To share your story, please email our editor Erin McLaughlin at erin@mediamatters.ca.
April 2018 collision Repair  11
who’s driving?
Abolderbusiness Turn profits by investing in your company
By Jay Perry
I
t is easy to become complacent in good times. Couched in comfort, profits and ease, I am always impressed by those that continue to look for ways to better their businesses. It would be easy to coast when you have business lined up out the door and no sign of it abating. The clients I am working with understand the concept of constant forward movement through continuous improvement. You should, too. If you
because they are doing great work and are being noticed for it. Their business has doubled in sales within the last year, which means more staff, stretching those that are on board already and helping them by providing professional assistance in their personal growth as leaders. This type of growth is not cheap, but it is necessary. These kinds of investments should not be made lightly. The word ‘investment’ is key because
many think of training as a cost alone. Rather, it is always a plan for the future.
are not investing in your facilities and your people you are going to move backwards. This is because the demands of a business are always the same—do what you are already doing, but better, faster and cheaper than you have done it before. The machine you currently have eventually will break down unless you prepare it for this future transition. It will take investment in your staff so they can work together more efficiently and effectively. It will take investment in your facility so processes can be improved. One of my clients is making a massive investment in facility improvement, designed to make life better for their people, customers and suppliers by providing a more predictable workflow. Simultaneously this client is investing in their staff through technical training and leadership soft-skills. Another client is investing six figures in training and development this year alone so their multi-million dollar operation can continue to work smoothly in a collegiate atmosphere. This will provide better retention, cycle times and profit improvements going forward. A different client’s business is growing quickly 12 collision Repair collisionrepairmag.com
many think of training as a cost alone. Rather, it is always a plan for the future. You have to be bold and brave to make big changes, but investments such as these need careful consideration. The right approach and implementation plan must be assembled prior to launch. This will ensure the success of the changes. I would encourage you to get together with a trusted adviser and create a plan for preparing your company for the future. That plan will include an assessment of current conditions, consideration of trends in your industry and a knowledgeable directive toward filling the gaps that will inevitably reveal themselves. It is the only way you can remain in the driver’s seat on the road to the future of your business.
Jay Perry is Co-Author of the book Success Manifesto with Brian Tracy, and the Founder of Ally Business Coaching, a process improvement and leadership development firm. He can be reached at jayperry@a-b-c-inc.com.
TRAINING
torchbearer Fuse training with Canada’s specific welding needs By Andrew Shepherd
I
n 2017 I-CAR Canada delivered 1,500 welding qualification exams across Canada, almost double the number from the previous year. This demand, growing to such an extent in such a short period of time undoubtedly reflects the critical place of welding certification in almost every OEM, private and public shop certification program, and more generally the foundational aspect of proper welding skills in the collision repair process. In response, I-CAR has been evolving to match the increased need for technicians properly trained in welding. I-CAR Canada currently delivers a number of various welding focused courses: WCS03—the Steel Welding Qualification; WCA03/05—the Aluminum Welding
Another example of Canadianization in the I-CAR program has been our determination and success in recognizing the extensive preparation of collision repair technicians through Canada’s apprenticeship system. A trade certification from this system provides the technician with almost 35 I-CAR equivalencies—core skills (and Gold Class requirements) which do not need to be retaken through I-CAR once learned through apprenticeship. Of note for all stakeholders, recent experience with welding qualification has led to a change in this equivalency approach. It has become evident that many apprenticeship graduates do not have the welding experience and knowledge required to pass I-CAR’s
to mould the I-CAR program to Canadian conditions has been one of the Canadian repair industry’s great successes.
Qualification; SPS05—the Structural Parts Steel Qualification and BRZ02—the MIG Brazing Hands-On Skills Development course. Both WCS03 and SPS05 are required for Gold Class shop status. Coming soon will be a hands-on Squeeze Type Resistance Spot Welding program to further enhance technicians’ abilities to effectively work with specific welding jobs. These welding certifications and hands-on skill development courses are a great example of the effective ‘Canadianization’ of what was initially designed as an international program. That is, what students learn is now relevant to the specific needs of the Canadian collision repair industry. In addition, I-CAR Canada delivers most of its welding programs through community colleges, institutions that have deep ties to the collision repair sector, and thus a well-established understanding of it. We prefer to use college training locations and instructors wherever possible, as they have no agenda other than public service, thus reducing the likelihood of bias in the classroom. 14 collision Repair collisionrepairmag.com
welding qualification. Because this is such a critical component of safe and effective collision repair, in later 2018 I-CAR Canada will no longer grant steel welding equivalency with a trade certificate, as it is vital to ensure all Canadian technicians are equally educated and capable of doing their jobs safely. The ability to mould the I-CAR program to Canadian conditions, and in particular to contribute to excellence in welding, has been one of the Canadian repair industry’s great successes. It is the responsibility of us all to ensure we remain aware of Canada’s specific automotive needs, that such needs are transferred to the training programs offered and that technicians have access to these training programs. 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
SAAR SAYS
will a hard rain fall? The signs of a storm brewing are here Tom Bissonnette
O
ne of my favourite musicians is a young lad from Regina, Saskatchewan by the name of Colin James. He wrote the song “Chicks ‘ n Cars” to tell the story of a young man that feels, “danger, trouble all around,” and eventually has to leave his town. In my short time as the executive director of the Saskatchewan Association of Automotive Repairers (SAAR) this song has come to mind on numerous occasions. Why? Well for starters, when visiting a number of shops throughout the province, I have noticed that many of the best run shops are either managed or influenced by women. Michael Gerber, in his book, The E Myth Revisited, talks about the fatal assumption most technicians
these beasts in the near future. Many shops I have visited are thinking about what the next two to five years will have in store for them, and they wonder, “will I even be in business?” The cost of equipment is daunting to say the least, but I think the training to get up to speed may be the biggest challenge. It is glaringly obvious that many shops are not repairing cars the way they are supposed to and probably have been doing so for some time now. SGI is very cautious about if or how much they want to pay for pre- and post-repair scan. Paying for a scan seems like a lot of money, but when you consider that most automotive mechanical repair shops charge in the neighborhood of $100 just to run a systems check, SGI is
It is glaringly obvious that many shops are not repairing cars the way they are supposed to
make when they develop an entrepreneurial spirit and decide to go into business—while they might be excellent craftsmen, they are usually lousy managers. Now before all of you guys go berserk over that comment, please realize that I include myself in that category, as I had three women backing me up while I ‘ran’ my shop. I think women generally make great managers. They have higher levels of empathy and authority than men. They see things from others’ points of view, but when required they will stand their ground and demand accountability. As SGI, our provincial insurer, allows shops to do more of the estimating and claims handling processes, we are going to see a proliferation of women in Saskatchewan bodyshops due to their managerial ability and organizational skills. In my travels I have met women in the workshop areas, at the Technical Schools and as PBE representatives. Personally I think they are making a hugely positive impact on our industry. We in Saskatchewan, like everyone else, are struggling with the technological challenge of scanning and reprogramming today’s newer vehicles. SGI is wondering what it means to their bottom line. Shops are wondering if they will be able to meet the challenge of being able to repair 16 collision Repair collisionrepairmag.com
getting a very good deal. Re-calibration, aiming of sensors and cameras is going to drive the cost of repairs even higher as manufacturers make driver assist safety features standard equipment even on their entry level vehicles. The folks in Newfoundland have colourful ways of describing life. My friend Derrick Ryan and I were discussing the challenges facing the collision industry, wondering how we were going to survive. He told me that bodyshop people are like rats: they can survive anything. He said that if there was a nuclear war on this planet, only rats and the bodyshop folk will be left! With survival, the worst thing a shop owner can do in our province today is withdraw into his own little world. They should stay plugged into training and equipment. There are interesting times ahead but you don’t have to face them by yourself, and you don’t have to leave this town!
Tom Bissonnette is the Executive Director of the Saskatchewan Association of Automotive Repairers. He can be reached at dir@s-a-a-r.com.
PRAIRIE VIEW
Flames on the Plains New technology is on the horizon. Start prepping today By Chelsea Stebner
“G
ive me some heat, and I will put on a log,” I imagine them telling their fireplaces. ‘Who is they,’ you ask? The sort of person who expects immediate results without making any efforts to achieve them. For most who work in our industry, the flaw in this kind of thinking is quite clear: you can only achieve results by making an effort. Back in the early 1990s there was a group of concerned shop owners in Saskatchewan that felt they lacked a voice in their Saskatchewan market. Looking back at the hazy history of Saskatchewan Association of Automotive Repairers, or SAAR as we call it, it is a little difficult to figure out who got things started. Regardless, the core idea remains the same: to ensure that collision repair facilities have a voice, and to focus on propelling industry change.
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Over the years, SAAR has done a fair bit of evolving. In fact, we believe that SAAR is one of the strongest shop associations in Canada. As a government insured province, it is important for shops to have a voice that will allow them to create solutions to help them bring their business to the next level, as well as create a feeling of trust among our stakeholders. After all, it can be said without a doubt that the goal for all parties is a safe, process driven repair for each and every customer. Today, industry disruption is happening as we speak. Technological change is rapidly coming down the pipe, and my question to you is: are you ready? Are you ready to engage in your industry and the on-coming change? You have great opportunity knocking at your door. Either embrace it, or simply ignore it. The choice is yours to make.
PRAIRIE VIEW
I’m certain every industry has those folks—the bumps. The ones that are merely along for the ride. The ones that get hit in the side of head and say, “What? I didn’t know that change was coming,” or “Wait for me, I need a chance to get caught up now.” But when that happens, it will already be too late.
Everyone is busy. Every. Single. Day. But if we don’t engage, if we don’t answer the emails, if we don’t show up, if we don’t offer to lend a hand—the fire goes out. Next time an email gets sent out or a question is asked, or an industry stakeholder needs your help, set aside your short-term responsibilities and say yes.
Technological change is rapidly coming down the pipe, and my question to you is: are you ready? You must engage. You must be on your game. You must respond to questions and look for answers at industry events. You must stick your neck above the crowd and be part of the solutions moving forward. Today, we have an engaged and tenacious executive director at SAAR who is bound and determined to forge relationship with insurance partners, to find solutions and to work together for the industry’s well-being. However, in order for this vision to move forward, we need engagement from shop owners, managers and stakeholders in our industry.
Take the five minutes to respond. If you want to thrive, not just survive, put a log on that fire and keep it bright and flaming.
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.
April 2018 collision Repair 19
Atlantic Insight
To Be or Not to Be To become OEM certified, that is the question
By Kelvin Campbell
H
ere on the East Coast, we local repairers have a proud tradition of mulling the big questions. These days, most of these questions are centred around certifications. Not so long ago, life felt pretty simple. We were pretty near getting a handle on things with insurers, who were starting to play nice, paying fair prices for our quality work. Then OEM certifications jumped into the ring and things got a bit topsy-turvy. There’s no denying it: deciding what equipment to use is a question owners have been pulling their hair out over for years, but
the technician while he is taking the course. I’ve said it before, and I’ll say it again: If you are chasing down one certification, you might as well be chase two, or three, or even six. Preparing for one certification builds up the shop infrastructure needed to start getting many others. When we became Porsche certified in 2014, it was almost free. The equipment we had for BMW was also certified with Porsche. This would also stand true with accreditation from CCIAP and certification through Mercedes, Audi and Ford. That’s not to say you should definitely go all in.
i’ll leave you with this: When it comes to certifications, fish or cut bait. allowing OEMs to make those decisions for shops is unlikely to prevent any hair loss. As a bodyshop owner with OEM certifications, I am often asked about whether they were a wise thing to pursue. I find you can make a decision—to OEM or not to—by answering three questions. First, is your customer safe? Second, do you have everything you need to fix new technology coming off the market? And third, can you do this while maintaining a healthy cost-benefit ratio? This really is not rocket science. I received my first certification in 2004 through BMW. I can tell you straight—the money invested was never recouped. Having said that, before I had become BMW certified, I did not have any direct repair relationships. Shortly after becoming certified, the DRPs started to flow in. This was my blue ocean strategy—a market-space clear of competition—and it worked. This was for me a turning point in my business as the revenues started to increase. Back then the cost of becoming certified was relatively inexpensive compared to today’s standards. My initial investment was around $250,000. Today, going from being not certified to certified would most likely cost some $400,000 depending on the tech in your shop. To be certified through BMW you can expect to spend at least $50,000 per year for training. That does not include transportation costs or the cost of paying 20 collision Repair collisionrepairmag.com
There are many avenues for autobody shop owners to take in order to have their technicians trained. I-CAR has been a staple in our industry for many years and offers courses on most new technologies offered at a fraction of the price of OEM certifications. There are also many online subscriptions with repair procedures available to subscribing shops. When it comes to brands that we are not certified with we have ALLDATA to give us the information we need to do the repair properly. I’ll leave you with this: when it comes to certifications, either fish or cut bait. A bodyshop should be investing at least a quarter of their profits back into their business. It is extremely important to have well trained technicians, modern equipment and information at their disposal. Whether that investment is more wisely spent pursuing OEM certifications or third-party training remains a question that must be answered by each shop owner. That’s how I see it. If anyone sees it differently, drop me a line. I’d love to have a conversation. Kelvin Campbell is the owner/operator of CSN Chapman Auto Body and CSN Chapman West Bedford. You can contact him at kelvin@ chapmanautobody.com.
Point Blank With Piercey
S
am Piercey was a true original. As the co-owner of Budds’ Collision in Oakville, Ontario, Piercey was always willing to share his opinions and experience with other members of his industry, both in person and through his popular column in Collision
Repair magazine, Point Blank with Piercey. We are pleased to share some of Piercey’s most insightful columns in this space in
support of the Sam Piercey Foundation, which awards bursaries to outstanding students in autobody and car painting. Donations and commitments can be made online by visiting theocf.org and clicking DONATE NOW. This will take you directly to Canada Helps, a secure payment platform for online donations. In the Fund drop-down menu, choose Sam Piercey Foundation (a fund established by Budds’ Group of Companies). Alternatively, donations may be directed to Sam Piercey Foundation, c/o Budds’ Group, 2454 South Service Rd. West, Oakville, Ontario, L6L 5M9.
Fair Play
Paying for bad repairs isn’t fair to anyone By Sam Piercey
Sam Piercey was the co-owner of Budds’ Collision Services in Oakville, Ontario. He passed away on July 24, 2016 as a result of complications arising due to leukemia.
A
luminum is showing up now more than ever before, and I bet we’re going to see more in the future. We’ve been repairing aluminum for years and I can tell you that it has simply got a higher cost than repairing steel. You will already know that, though, if you’ve looked into the investments you need to make if you want to repair it properly. If you can’t or won’t make that investment, don’t touch it. Here’s the thing. We’re seeing more certification programs coming from the OEMs. We’re seeing more advanced materials that require more investment in equipment and training. Frankly, I think we need to charge more for repairs to certain vehicles. The regular door rate does not cut it. There are partners who understand this and partners who don’t. I’ll lay it out. Some materials require more intense labour when it comes to repair. Not only that, but prepping is also more intense. Plus, we have to use epoxy primer, which is an increased expense. Add in the equipment investment and the training investment, and the costs go up again. When it comes to aluminum, you are either looking at a separate clean room or at least a heavily curtained off area of the shop that you can’t use for anything else. In short, it’s more expensive to fix some cars than others. Equipment, training, renovating
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the facility…what about the gals and guys on the floor? You know, the ones doing the work? Procedures must be followed exactly, with little to no tolerance for error. The higher-end the vehicle, the more “exotic” the materials, the more stress there is on the folks doing the repairs. They need to cover their time, training and investment in tools. More than that, they need to be paid what they deserve. If you pay bananas, don’t be surprised if you get monkeys. We’re also talking about issues of consumer safety here. I’d like to think that everybody is just going to bite the bullet and repair the car safely, even if it means showing a loss on that repair. I’d like to believe that, but I’m not in kindergarten anymore, so I don’t. We see bad repairs coming in to our facility now, sent to us only after someone else butchered it. It’s compromising safety and it’s diminishing the overall value of the vehicle. As I said, some partners get it, and some partners don’t. Why is it that we seldom see appraisers that sit at the image desk at a training session learning about the needed repairs and procedures before they get to sit down and cut the sheet up? The industry needs more fair income, and I do mean fair. It’s not fair or right to send an aluminum car to a facility that will do a dangerous repair. It’s also a waste of money that piles up liability for the future. That’s why good partners don’t do it.
PROFILES OF SUCCESS
Photograph taken by Kristina Smith
Kindred calling
Ralph’s family, the D’Alessandros. Bottom left to right: Lorenzo and Ralph D’Alessandro. Top left to right: Nicholas, Jessica, Gabriel, John, Frank, Giulian D’Alessandro.
The D’Alessandros make quality repairs a family tradition By Erin McLaughlin Photography: Kristina Smith
E
ntangled into a family tree is far more than the people it is comprised of. Families consist of nuggets of knowledge, stories, legends and genes passed down from generation to generation. Some families exude this kind of shared knowledge—the fact that they come from the same soil is as clear as the colour blue. Such is the case with the D’Alessandro family, a group of people who share a vibrant history, beginning in a small Italian town in the region of Puglia. Today, they run CSN - 427 Auto Collision in Toronto, Ontario. April 2018 collision Repair 25
PROFILES OF SUCCESS
– Lorenzo D’Alessandro
Ralph D’Alessandro, a proud grandfather and a living, breathing map of his family’s story, first arrived to Canada on April 18, 1959 and was joined six months later by his wife, Gina. A life change as substantial as moving to a brand new country is difficult, but Ralph remained steadfast in one simple goal: “I wanted to find ways to improve myself all the time.” This goal extended to how he ran his business, and extended further to his relationship with the collision repair industry. “All my life I’ve wanted to change the face of the industry—to show people that it’s a respectable path,” he said. Before Ralph owned a business, his brother ran a small shop that offered mechanical and autobody services. Ralph was heavily involved with the autobody division of his brother’s facility. His oldest son, Lorenzo, too started working there during the summers around the age of twelve, sanding cars in the lane. Lorenzo would have never realized it, but spending those long, sunny summers working alongside his father and uncle would instill in him a life-long love for the family business. 26 collision Repair collisionrepairmag.com
Giulian D’Alessandro works on an estimate. The atmosphere of CSN - 427 Auto is noteworthy in its warmth and friendliness.
Photograph taken by Kristina Smith
“The only constant we have here is continuous improvement. We never fear change.”
Photograph taken by Kristina Smith
From left: Lorenzo, Ralph, John and Frank D’Alessandro.
PROFILES OF SUCCESS
Gabriel D’Alessandro, Ralph’s grandson. To increase productivity and get places more quickly, staff ride around the facility on bicycles.
From left: Lorenzo and Ralph D’Allessandro, and Joe Bragga, long time family friend.
Lorenzo was not the only child of Ralph who was ultimately drawn back into his dad’s bodyshop. In fact, all three of Ralph’s boys now work at CSN - 427 Auto, each playing their own unique and equally vital role in the success of the business. “I (Lorenzo) have the big mouth, Frank is the production guy and Johnny has the charisma. We have three different, but complementary, personalities. If we were all the same it wouldn’t work.”
Photograph taken by Kristina Smith
In 1972 Ralph took over the autobody facility at his brother’s shop. Determined to own and build his own business, he saw the potential for growth in an otherwise overlooked industry. Less than two years later, Ralph was able to move into a much larger, new space, unprecedented for an auto collision facility at the time. Over the years, Lorenzo found himself orbiting away from collision repair. “I didn’t really want to go into the family business, as weird as it sounds now. I saw how hard they worked, how many hours they put in. I didn’t think I wanted that.” Lorenzo graduated with a business and economics degree from York University in 1982, with the intentions of pursuing something in finance. After having graduated, however, Lorenzo found himself struggling to find employment. “When I look back, it was all circumstance. I was having trouble finding a job so my dad said, ‘Well why don’t you come work for me?’” Working with his father conflicted with Lorenzo’s ultimate career objectives at the time, but he soon embraced the autobody world, taking any course he could find related to the business and visiting every successful bodyshop in the area. Lorenzo came full circle—back to working with his dad. And it worked out. “I understood the bodyshop business from youth, and picked up the other pieces really quickly. My degree in economics helped.”
Johnny said, laughing, “Ralph is a bit of a magician. He was able to pull all his sons into the industry. We believed in him.” In 1987 Frank graduated from York University and was offered various jobs before deciding to join his family and help grow their auto collision centre. Soon after, University of Toronto Grad Johnny, the youngest of the three brothers, realized he could not turn down the opportunity to work with his family, owning and operating such a unique business in the collision repair industry. Jessica D’Alessandro, Lorenzo’s daughter, is employed with the business as public relations and marketing coordinator. Along with Jessica is her brother Nicholas; and Frank’s two sons, Giulian, customer service representative and Gabriel, production assistant. While Ralph has retired from the hustle and bustle of running a successful business, he still consults with his family, and offers advice rooted in years of experience. It seems to be true time and time again, that with the collision repair industry, once you’re in it, there’s no getting out. While not all those who are employed by CSN - 427 Auto are members of the D’Alessandro family, Lorenzo says everyone who works there is treated like family. Consequently, the staff receives many perks. “We lead by example. Offering equal opportunities to every employee is important to us—benefits, company events and so much training,” noted Lorenzo. April 2018 collision Repair 27
28 collision Repair collisionrepairmag.com
In 1972 Ralph took over the autobody facility at his brother’s shop. Determined to own and build his own business, he saw the potential for growth in an otherwise overlooked industry.
Photograph taken by Kristina Smith
Jessica, who fairly recently joined her family at the business, said, “It’s different, working with your family. It was hard to get used to, but it’s really special. It has made our relationships stronger, you see your lives relating more.” Although Jessica recently came aboard the business, she grew up in the shop. “We would come here every weekend—me, my brother, my cousins. We were always up to something.” In spending time at the shop as a child, she witnessed first-hand the work her father and family put into the business. “This place didn’t come from nothing. They put so much hard work into it. I’m so proud of them and of what they have built. I really look up to them.” The way in which Ralph and Gina raised their children, and how they raised theirs in turn, might just be why the atmosphere of CSN - 427 Auto is noteworthy in its warmth and friendliness. One gets the impression that they’ve accidently walked into a busy family home on a holiday. “My dad and mom would always make my brothers and I spend time together and go on trips together. I think that’s why we are so close,” said Jessica. Ralph has taught a series of lessons to his children, who have in turn passed them down to their children. Ralph has always been one to strive for continuous improvement, but this was never an empty promise he made to himself, because he had a method for how he would do such a thing. “I have a simple philosophy. If you eat small bites, you can eat all the time. You don’t want to choke.” This philosophy has since been passed from generation to generation, and is deeply woven into the business structure. “Our family principles make us work harder,” said Lorenzo, adding, “The only constant we have here is continuous improvement. We never fear change.” One example of this is the development of Collision Solutions Network, or CSN Collision Centres. In 2001, the D’Alessandros were one of the co-founders of CSN—a network of locally-owned repair facilities, now encompassing over 350 shops nationwide, which focuses on producing quality repairs and an elevated level of customer service. Driven by the need for constant improvement and adaptation, the family works to continuously evolve. Equipping his family with the skills and resources to move onward and upward is for Ralph, a source of pride that cannot be extinguished. He said warmly, “My progress, my family, that’s what I’m most proud of. The life I have created and initiated, and to have them follow my route—that’s pride.”
Photograph taken by Kristina Smith
PROFILES OF SUCCESS
Jessica D’Alessandro, Ralph’s granddaughter, is employed with the business as public relations and marketing coordinator.
An old photo of Ralph’s son Lorenzo, and grandson, Nicholas.
www.ProFirst.ca
Industry Landscape
Chris Stathonikos when he opened his first shop in 1974.
Bodyshops without Borders Immigrating into Canada through the auto repair industry by Josh White
W
ith Canada’s auto repair industry growing every day, it comes as no surprise that immigrants contribute to its development. Looking at the industry, first-generation immigrants are working on all levels from shop workers to owners and beyond. Their hard work and dedication to the craft is welcomed in this country, allowing for people from all over the world to bring their skills and knowledge to our home and native land. With each immigrant comes a different experience and a story following their journey to Canada and within the auto repair industry. Here are the stories of two immigrants and their way into the Canadian auto field. As president and founder of the CARSTAR CMD Group, Chris Stathonikos is no stranger to collision repair, but had a long road to
get where he is today. He began working at his first shop at fifteen in Athens, Greece. Stathonikos would work during the day and attend school at night. In 1966, Stathonikos got an invitation from his brother to travel to Calgary. At 17, he went through the Canadian Consulate in Greece to begin his
kinds of situations took time to overcome. “For three years, you’re lost,” he says. But this did not stop him. With help from Canada and the auto repair industry, he was able to build the successful life he has now. Finally arriving in Calgary, the auto industry was quick to welcome him. Within a month, Stathonikos got a job at a bodyshop. Here, his skills developed further and he opened his first shop in 1974, with two more locations by 1980. Like many other Albertans, Stathonikos was hit with hard times in 1984 from the National Energy Program, closing two of his shops. Fortunately, he was not on his own and had help from Canada and the industry. “It is a very good country; they will help you with this and that,” he reflects. The original shop remained open until 1998 when Stathonikos made the decision to join the CARSTAR network. He explains how this decision was his way of adapting
“I’m very grateful to Canada. People have been great to us and appreciate labour work.” – Stephanie Recavarren life-changing journey. Stathonikos recognized the challenges of immigration as he passed through New York and Toronto on the way to Calgary. After missing the flight to Toronto and having his luggage lost, his limited English left him unable to understand the situation until he could find someone to translate. Stathonikos describes how these
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Industry Landscape
Juan Recavarren working on his family doctor’s car in 1992. It was the first Porsche he had ever worked on; they are now his specialty.
Chris Stathonikos painted the Greek bobsled for the 2006 Winter Olympics in Torino.
to the market. “I saw the industry was changing. The groups were doing better than the small shops.” This choice proved to be beneficial for both him and his family. In 2004, Stathonikos formed the CMD Group with his son, Matthew, as well as Dave Stretz. With the group opening five shops and a CARSTAR Express, Stathonikos received the Matthew Ornstein Lifetime Achievement Award in 2014. Although far from his start in an Athens bodyshop at fifteen, Stathonikos does not forget where he came from. Though he faced challenges developing his new life in Canada, his hard work allows him to thrive both in business and family. Juan Recavarren had a much different experience immigrating to Canada. In the 1970s, he was repairing cars in his home country of Peru. Unfortunately, this was not a promising way to make a living. After working in California with his uncle for a period, he was forced to return to South America to study when his papers expired. Upon visiting his sister who recently moved to Canada, Recavarren immediately saw his potential in the industry. Shortly after moving to North Vancouver in 1990, he was working in a shop. In this work, he noticed major differences from
the industry in Peru. “I was impressed with how many parts we repair in Canada. In Peru, the availability of parts was lower,” says Recavarren. With only three car brands sold in Peru at that time, technology was not as advanced as it was in Canada. Embracing what our country had to offer, he worked hard to learn as much as he could from the industry. Today, Recavarren has a family and owns Juan’s Auto Service in Richmond. His shop has won several awards including “Auto Repair Shop of the Year” and “Best Mechanic.” On integrating into Canada, Recavarren
found it easy to establish his place in the country. “It’s a beautiful place to live. The community is strong, you can go hiking outdoors, and the culture is similar to Peru,” he says. His wife Stephanie expresses the same sentiment saying, “I’m very grateful to Canada. People have been great to us and appreciate labour work a lot more.” Sharing these stories, Stathonikos and Recavarren prove it is not where you are from, but the dedication you are willing to put into the craft that makes you stand out in any industry. April 2018 collision Repair 31
BUSINESS STRATEGY
Doug Roberts is the facility’s founder, while his daughter Kim handles day-to-day operations.
The Logistics of Legacy The kins and outs of running a family business
by Gideon Scanlon
came a co-owner of Regina Autobody in 1965. “I was six when my brothinheritable trait, and in most industries passing down a directly managed ers and I got our first expebusiness through the generations would seem downright passé. Yet in the rience in the shop. My dad collision repair sector, many family-run facilities don’t just survive, they thrive. got us to sweep in exchange for pop,” says Mike. “As we grew up, we got involved in In the collision repair community, family-run busimore and more of the shop’s business. When we took nesses are anything but a rare sight. While mainstream over, it was easy to understand the why behind the economists may say businesses thrive when power is how of the operation.” in the hands of those who have shown proficiency for Asking ten top executives what makes them sucwielding it rather than directly inheriting it, plenty cessful is likely to garner you ten distinct answers. of shops appear to prove this rule wrong. In one area, however, the vast majority will be in The question must be asked: are economists incoragreement: The key to leading a business lies in knowrect, or is there something special about the industry ing how every aspect of the machine runs. Here, the itself that favours family-run shops? Marios had a leg-up, making their father’s ‘will work Mike Mario has both worked for and alongside for soda’ scheme something of a strategic advantage members of his own family. Growing up as the son when they took over control. They are hardly unique of one of the partners of Regina Autobody, he, along here; for many owners, the shop floor is an excellent with brothers Greg and Chris, purchased the facility place to help teach children the meaning of responin 1989, learning to turn their brotherly love into the sibility. Like the Marios, Rob Ligouri learned many foundation of a successful business.For the Marios, of his early lessons of the meaning of hard work on the lessons began early, shortly after their father bethe shop floor. The son of Nick, and nephew of CCS The ability to run a business effectively is not generally considered an
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BUSINESS STRATEGY
president Sandy Ligouri, who together co-own Woodchester Collison, Rob Ligouri oversees the activities at shop-level alongside cousin Danny Ligouri. “It started with sweeping, and went from there until I finished high school,” says Rob. “So I grew up with a pretty good idea of everything that was going on.” As much as a childhood of collision immersion is a compelling explanation for the success of the family-run shop, it cannot explain everything about their near-ubiquity within the industry. After all, not every parent is so eager to see their children working alongside them. Doug Roberts, owner of two Fix Auto facilities in Barrie, employs his children Kim and Todd and son-in-law Greg Dunn.
“You have to draw a distinction between family and business. No matter what happens, you have to go to family dinners, so we have had to learn to draw a line in the sand.” - Mike Mario, Regina Autobody He brought his children into the workplace only relatively recently. In fact, when his daughter had been thinking of first jobs, he had actively sought to convince Kim to stay away from collision repair. “At the time, I didn’t think it was an appropriate place for a young lady to work,” he says, adding that after coming into the business many years after beginning her career, “She has definitely shown me she’s capable.” Doug is also cognizant of his responsibilities to those employees who are not his kin—particularly Derek Clark, his long-time location manager. For business partners without shared blood, arguments can become insurmountable barriers to work. If one wants to move the business in a new direction and the other hopes to stick to the comfort of the status quo, the partnership, and the business itself, could be imperilled. Within families, however, arguments
Johnny (left) and his father, John D’Ambrosio. Together they co-own Fix Auto St. Catharines.
Allain and Adam Sarkis with their mother, Rose-May. Rose-May’s sons literally grew up in the business, learning to wash cars before they were even big enough to properly handle the bucket.
Greg, Chris and Mike Mario bought Regina Autobody from their father and his business partner in 1989.
April 2018 collision Repair 33
BUSINESS STRATEGY
r a re l y h av e s u c h h i g h stakes. In fact, while most people are more likely to argue with siblings and cousins they have known since childhood, they are also better able to move on from conflict. “You have to draw a distinction between family and business,” says Mike Mario. “No matter what happens, you have to go to family dinners, so we have had to learn to draw a line in the sand.” For those family members who work under the direction of the older generations, familial ties often bring a level of added responsibility, and the promise of reconciliation can sometimes mean that they are more likely to take on additional accountability for mistakes made. “Working with my cousin is a lot of fun, though our fathers can be especially hard on us. If something goes wrong, we can expect to bear the brunt of the blame,” says Rob Ligouri. Special treatment is also something that Doug Roberts is eager
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The Fix Auto Barrie North team: Kim Roberts, Todd Roberts, Doug Roberts, Greg Dunn, Derek Clark.
to avoid. For his children and son-in-law, this means he ensures they take their lead from his most trusted lieutenant, Derek. “I make sure that they learn as much as they can about the business from him,” he says. Like any father, no matter how fair-minded, the ability to refrain from playfully embarrassing his children is something that cannot be completely removed from the workplace. “I think the sibling rivalry thing is mostly over, but it is something to watch out for,” Doug teases, eliciting a bemused groan from Kim and Todd. “I have to sit Derek between them to keep the peace.” On the shop floor, workers will sometimes sink to petty games in order to mark themselves out for promotion—or to undermine the aspirations of their rivals. While still very much an aspect of life in a family-run business, decisions made by members of the family-run shop are far less likely to be made with short-term personal advantages in mind—long-term decision making is often ingrained in the business. “Our fathers, Nick and Sandy, opened the place in 1977. They’ve always cherished the business and had their eye on the long-term, focusing on steady, sensible growth,” says Rob Ligouri. “Danny and I have really taken that message to heart, and so our business instincts tend towards looking for long-term solutions rather than chasing risky short-term ones.” While economists may be flummoxed by the continued strength of the family-run business in the industry, insiders are not. Repair work is a complex business, and the ability to understand the business and speak frankly about the problems it faces is something that should not be under-valued. Beyond economic concerns, however, there may be a much more human side to the story. In each shop surveyed, one thing was clear: successful family-run shops do not favour family members over other employees—they make all their employees feel like family.
EXECUTIVE VISION
Balancing Act Greg Morton on how to keep up with the growing business world of collision repair
G
reg Morton has spent a lifetime building a career with Dominion Sure Seal, working with them for over 22 years, many of them as managing director. Starting off in sales with Meguiar’s Canada, he soon rose up the ranks and began to run the show, taking on the position of managing director.
Collision Repair magazine: Why don’t you start by telling us a bit about your beginnings with Dominion Sure Seal? Greg Morton: I started working at Domin-
ion Sure Seal when I was fourteen years old, working in the warehouse and in production every summer until I completed university in 1996. When I got out of university I started working for Meguiar’s Canada which we had the rights to until 2009. I began just working in sales but after about three years I started running the company as managing director. Over the next few years Meguiar’s Executive Vision focuses on discussions with key players in the auto claims economy. If you would like to know what’s going on in the mind of a specific individual involved in the collision repair industry, please email editor@ collisionrepairmag.com.
Canada grew exponentially and was quite successful. In 2009 3M bought our parent company Meguiar’s and in turn 3M bought out Meguiar’s Canada. After that I started working with Dominion Sure Seal fulltime. CRM: In the quarter century you have been in your role, what was the toughest lesson you had to learn, and why? GM: That not everything is under my control. Market factors, company buyouts, governmental regulations and many other things impact our business that I have no control over. Meguiar’s Canada was bought out by 3M and I had to adapt. There was nothing else I could do about it. CRM: Do you have a particular goal in mind for the business in the next year? How about the next decade?
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GM: To grow our market share in Canada and the U.S. We have substantial market share in Canada, but we have a lot of work to do in the U.S. So, largely our focus will be increasing our market presence in the U.S. CRM: To what do you credit your own success? GM: I have solid mentors who have taught me about ins and outs of the business. They have played a huge role in what I’ve learned and accomplished. I am also university educated and continue to take courses in business to this day. I am constantly learning. CRM: Do you have any tips for young people looking to fill the shoes of the older gen? GM: Start by learning the easier or smaller parts of the business and work your way up.
EXECUTIVE VISION
Greg Morton, managing director of Dominion Sure Seal.
“I have solid mentors who have taught me about ins and outs of the business. They have played a huge role in what I’ve learned and accomplished.” – Greg Morton
Get to know all aspects of the industry from shipping to marketing to general management. It may take a while but it all pays off in the end.
GM: The carrot. I incentivize my staff to be the best they can be and if they achieve their goals and set targets they are well rewarded for doing so.
CRM: Do you have an achievement that you are particularly proud of in business?
CRM: If you were trying to sell someone on taking over your job, which parts would you highlight? What would you forget to mention?
GM: After I took over Meguia’s Canada our business grew about 300 percent and since I took over Dominion Sure Seal our business and market share has increased substantially as well. Also the fact that I have a lot of longterm employees who have been here more than ten years and some more than twenty. They have stuck with me through the good and the bad and if it wasn’t for them I don’t know where I’d be. CRM: Do you motivate with the carrot or the stick? Expand.
GM: I would highlight the fact I get to work with fantastic people. These are people I can rely on and not worry about doing their jobs correctly. It’s rewarding to see their accomplishments and how much they care. I would forget to mention how work is constantly on my mind and that it’s virtually impossible to leave it at the office when I go home for the night. CRM: What is the biggest challenge facing the automotive aftermarket?
GM: Continued movement towards fully autonomous cars. They will have a great impact on the collision repair sector due to the constant changes in technology. Cars will have sensors on every part of the vehicle which will make them more difficult to repair than replace. CRM: Do you have a solution in mind? GM: It’s important to stay up to date on industry trends and the collision repair solutions to these trends. This is the main reason Dominion Sure Seal is a proud major sponsor of the CCIF and we attend all the forums and events. The CCIF is a great way to stay up to date on changes and challenges to the automotive collision industry and get involved with the discussions on proposed solutions.
April 2018 collision Repair 37
Gaining Goodwill with CONSUMER CORNER
Grudge Purchases by Jeff Mowatt
H
ow do you think your customers would prefer to spend $1,000—toward a vacation of their choice or towards repairing their damaged vehicle? Probably the former. After over 25 years of advising companies that deal primarily with reluctant customers, I’ve developed these four strategies for helping customers feel better about spending money on “grudge purchases.”
1. Focus on Task over Mood If you sense your customers are rushed or frustrated, don’t ask them how they are. That question just reminds them that they’re not having a good experience. Instead, ask, “What can I do to make your day go a little better?” It helps keep the conversation positive while indicating you’re aware that they have other things they’d rather be doing. Speaking of better word choices, avoid asking reluctant customers what they want or what they’d like. Frankly they don’t want to be there at all. Instead, phrase your questions along the lines of, “Would it be useful...?” “Would it make sense...?” “Would it be helpful...?” In general, we get better results with task-oriented questions that focus on resolving the customer’s problem.
2. Acknowledge Delays A couple enjoying an appetizer at a fancy restaurant may not mind waiting if the main course is slightly delayed. On the other hand, a parent kept waiting past appointment time with a fidgety child in a crowded waiting room needs an explanation. The customer service provider shouldn’t just ignore being late. She should start with, “Thanks for your patience today. I was just helping another customer with their estimates. Rest assured we’ll take all the time we need to take care of you. Before I do, how’s your time—are we OK?” When customers agree to proceed they feel less taken for granted, more like they’ve regained control, and become more receptive to your service.
3. Share your Strategic Intent Let begrudging customers know that you understand what they really want. Your employee would do well to say something like, “Let’s get this done quickly so you can get your children to soccer practice this weekend.” Customers may be focused on the immediate painful purchase. You need to remind them of the more positive strategic outcome.
4. Offer Pricing perspective By definition, people don’t enjoy spending money on grudge purchases. So with big-ticket purchases it’s helpful to break the price down into something that sounds less daunting. So, rather than saying to a customer, “The full repairs will be eight thousand dollars,” instead say, “The repairs will be 8k.” Then compare that figure with their overall investment. Bottom line: too often, service providers fail to realize just how much customers don’t want to be there. That’s when employees appear to customers to be oblivious and uncaring. Meanwhile, these same employees wonder why customers are so demanding and grouchy. The good news is with a little training, employees can come across as wonderfully astute and empathetic. That makes for This article is based on the bestsella more pleasant experience for ing book, Influence with Ease by Hall of Fame motivational speaker, everyone. Most importantly, Jeff Mowatt. To obtain your own customers become less resentcopy of his book or to inquire about engaging Jeff for your team, visit ful about sending their dollars www.jeffmowatt.com. your way. April 2018 collision Repair 39
FINANCIAL REPORT
Metal Mayhem
W
e may live in a time of plastic, but it is metal prices that have driven much of the recent economic news related to the collision repair industry, from the interest generated in an auto recycler by the spike in steel and aluminum prices, to the chilling effect of President Donald Trump’s decision to slap import tariffs on aluminum and steel imported into the U.S.
The U.S. gets protective about steel and aluminum while the Bank of Canada raises its rates BY JEFF SANFORD
The Coin Crisis The Bank of Canada has been raising interest rates of late. The bank argues higher interest rates are necessary to head off the threat of inflation, but a recent report from Statistics Canada suggests the bank could be getting ahead of itself. According to the report, the economy is already decelerating as indebted households begin to reign in spending. According to Stats Canada the economy grew at an annual pace of just 1.7 percent in the fourth quarter. The idea that rapidly expanding growth will kick off a round of inflation seems less plausible in light of the latest data. However sluggish the growth is,
David McKay, CEO of the Royal Bank of Canada.
Rule with an Aluminum Fist U.S. President Donald Trump surprised after hastily announcing he will attach a 25 percent duty on imported steel and aluminum. Corporate America widely disagreed with the policy, warning that prices would rise for products through the economy, slowing consumer spending. According to experts such tariffs would hit the auto and aerospace industries hardest, though the price of everything from beer to soft drinks, canned soup, pharmaceuticals and the iPhone could be expected to rise precipitously. Toyota executives said the proposal would, “hike the price of cars and trucks sold in America.” Auto dealers also raised concerns. “These proposed tariffs on steel and aluminum imports couldn’t come at a worse time,” the president of the American International Automobile Dealers Association was quoted as saying. “Auto sales have flattened in recent months, and manufacturers are not prepared to absorb a sharp increase in the cost to build cars and trucks in America.”
it seems that a number of temporary factors, specifically a strong housing market, bumped it up in the quarter. New home construction was stronger than expected as buyers rushed to beat the imposition of tighter mortgage requirements that came into effect January 1. Without the increase in residential spending from housing the growth rate would have been just 0.7 percent. That’s quite low. The stall in growth was attributed to indebted consumers who increased the rate at which they saved money. With consumers increasing their savings rate, consumer spending fell. It will be interesting to see what the Bank of Canada’s outlook on interest rates will be in light of the most recent data.
President Donald Trump declares war on steel and aluminum.
April 2018 collision Repair 41
FINANCIAL REPORT
The increased potential for a global trade war the announcement brings also has to be worrying for anyone in business. The Chinese are already reacting to Trump’s new tariffs on steel and aluminum with quotas and import-export taxes of their own. Some observers were impressed with how quickly China reacted. It was clear to some that the Chinese had a plan ready to go in anticipation of Trump’s trade policies. It is remarkable how rapidly the U.S.’s shift from its long-term post-war policy of global free trade has occurred. Manufacturers are already experiencing higher prices for basic materials. The Institute for Supply Management has long provided the basic measure of raw-material prices in the U.S. economy and its latest manufacturing report finds input costs in the American economy have already risen to an almost seven-year high in March. Steel and aluminum are basic raw materials used throughout the industry. Businesses have already begun stocking up on these metals
in response to the tariff announcement. Some companies have received price quotes for steel that are valid for just 24 hours, as the price begins to rise. Some manufacturers are finding prices quoted by suppliers are higher if they call back after just a day or two. Apparently some in the machinery sector have already experienced panic buying. Manufacturers will surely experience a hit to earnings in the months ahead. Will the shift to aluminum in autobody be put on hold? It was also announced last week that the Trump administration is taking steps to roll back fuel economy rules for cars. New measures on vehicle emissions brought in by the Obama administration had been thought to be driving the adoption of higher levels of aluminum in cars. More aluminum would have allowed vehicles to achieve fuel efficiency standards that would have required cars to get more than 50 miles on the gallon. If those regulations are rolled back, one assumes the rate of adoption of alminum in vehicle bodies will fall.
Manufacturers are finding prices quoted by suppliers are higher if they call back after just a day or two.
Not all that Glitters is Gold Palladium prices remain relatively high, good news to auto recyclers that can recover this element from catalytic converters. The price of the rare metal, which reached a record high of $44,000 per kg in January, has remained above $40,000 per kg since. That had manufacturers wondering whether to raise prices on catalytic converters, according to reports. It is thought that the record sales of autos over the past few years have driven the bull market in the price of the commodity. According to one report, “Automotive industry and precious metals analysts say the hike in catalytic converter prices will likely hit the secondary aftermarket first—the manufacturers of the units and repair shops that replace them in used vehicles, rather than auto manufacturers.” Some analysts are predicting a price increase of five to ten percent in aftermarket catalytic converters as a result of the price shift. The price of palladium moved higher
Some analysts are predicting a price increase of five to ten percent in aftermarket catalytic converters as a result of the price shift. John Wilson, CEO of Ontario-based Sprott Asset Management.
than that of platinum in September of last year. This was the first time that has happened since 2001, according to reports. Both platinum and palladium are used in catalytic converters, but platinum is used more often in diesel vehicles. Sales of diesel engine-based cars have been flat since the emissions-rigging scandal of 2015 that found
car manufacturers like VW had cheated on emissions tests. Palladium is also used more often in hybrid electric vehicles, and so demand has risen. According to a metals analyst at Ontario-based Sprott Asset Management, “The deficit situation likely won’t go away anytime soon. Existing mines are not able to ramp up production to meet demand. Above-ground stockpiles, which are used to plug the supply-demand gap, are quite likely gone by now.”
Price Hike Vince Rae, senior vice president, trade sales.
42 collision Repair collisionrepairmag.com
PPG announced this past week it will raise prices for select coatings products for automotive OEM customers in the Americas. The price hike will be effective immediately or as contracts permit. Apparently, the company is taking the pricing actions to head-off the effect of rising raw material and operating costs. One report suggests PPG is, “currently witnessing excess demand for raw materials outpacing the supply capacity of industries providing materials for paints and coatings. Additionally, the company has seen increased freight and logistics costs for the past six months due to oil prices increasing nearly forty percent over the past nine months.”
FINANCIAL REPORT
On the Rise Could AutoCanada replicate the success of Boyd? The publicly-traded dealership group announced it has made its first foray into the U.S. market with the purchase of an Illinois-based dealership group. Boyd has had fantastic success consolidating U.S.-based collision repair shops. Not many securities have a steady and positive stock price growth like Boyd now does. No wonder the units are getting more attention from investors. Could AutoCanada be on the verge of attempting a similar roll-up of U.S.-based dealerships? Why not? The company laid out $110 million to purchase of the Grossinger Auto Group in Illinois. This is the first acquisition for AutoCanada south of the border. The deal includes stores that AutoCanada would not be permitted to own in Canada. Ford, Honda and Toyota have banned publicly traded dealership groups like AutoCanada from buying up the stores. But these deals are allowed in the U.S., as well as most other nations. The deal diversifies the company by geography and brand. The 54 franchised dealerships under the AutoCanada umbrella processed
Mark Warsaba, senior vice president and chief operations officer, AutoCanada.
approximately 870,000 service and collision orders in over 999 service bays in 2017, bringing in over $3 billion in revenue. AutoCanada also announced it signed a new credit agreement that will give it access to a maximum $1.08 billion. Of this, $350 million for acquisitions and capital expenditures. The new facility is led by Scotiabank but involves CIBC, RBC, HSBC and ATB and replaces a previous $550 million credit agreement. “This new credit facility will
provide AutoCanada with the flexibility to continue to grow and acquire dealerships, finance our business and maintain a prudent approach to leverage. We thank all of our lending partners for their support in completing the syndication and their continued vote of confidence in our success,” said Chris Burrows, senior vice-president and chief financial officer. Could AutoCanada be the next Boyd? We’ll have to wait and see.
April 2018 collision Repair 43
BUSINESS STRATEGY
3D Product Canada president Barry Dixon (left) with sales and marketing manager Brian Walroth.
Customer care with class
By Gideon Scanlon
O
n April 7, 2017, 3D Products Canada opened a 250 sq m facility in Vaughan, Ontario. At first glance, there may seem to be nothing unusual about the site. In front, a shop where walk-in customers looking for waxes, polishes and shampoos can buy their goods. In back, however, is where the unexpected happens. For one thing, there is the 65 sq m training centre where industry professionals learn the ins-and-outs of their systems. For another, the second storey is a classroom. While it might seem an unusual use of resources for a company best known for providing environmentally responsible finishing systems and products for car washes, detailers and bodyshops, thus the considerable “unexpectedness” of the training facilities offered, there is a considered strategy at play.
Brian Walroth’s hands-on demonstrations have helped build-up the popularity of 3D Products Canada’s seminars.
From the outside, the Vaughan location appears to just be a retail outlet.
44 collision Repair collisionrepairmag.com
From left to right: Bryan Walroth, sales and training manager; Chris McGee, sales representative, Gloria Mann and Barry Dixon, President 3D Products Canada.
As the only International Detailers Association-certified training centre in Ontario, the centre serves as a major hub for both the business operators and workers of Canada’s detailing industry with the curriculum monitored by 3D Product Canada’s sales and marketing manager Bryan Walroth. Walroth, who founded his own detailing company, Concourse Touch, is one of 3D Product’s most reliable and well-informed Canadian customers. Noted for his in-depth understanding and business-minded approach, he was taken on by 3D Products when the new division opened in 2014. “We offer a four-day training seminar aimed at business owners at the facility. Our goal with it is not just to teach them how to effectively use our systems and products, but to share strategies for making refinishing businesses run more smoothly,” says Walroth, adding, “Our two-day course is focused on teaching the use of the systems and tools.” While the classes are delivered to six fee-paying students per session, and scheduled to run eight times a year, Walroth also delivers several one-day free seminars during the summer. When 3D Products opened its Canadian division in late 2014, the Californian firm knew it was going to have to work hard in order to find a stable niche in the competitive market. The executive team had every reason to be confident in their products, and, in California, it had an established reputation for providing environmentally friendly and cutting-edge products. From its beginning in 1996, 3D Products was known for investing considerable sums in research and development. With a flurry of new environmental legislation passed in California
BUSINESS STRATEGY
in the late 1990s and early 2000s, that focus did not just allow the company to stay on the ball—they walked well-ahead of it. Not only was 3D Products the first company to develop waterless car wash systems, it was also able to stay ahead of California Resource Board rules which mandated the reduction of volatile organic compounds five years before they were implemented. More recent innovations include the invention of the hyper-concentrated nanodrum, which replaces 208 litre shampoo drums with 6 litre ones, saving floor space and increasing safety for detailers. That interest in innovation has continued with its new Canadian branch, the team working with chemists to come up with solutions for a climate far more wearing on a car’s appearance than the warm sun. “We recently came up with a stain remover that targets salt-based damage,” says Walroth. “Road salt isn’t something you come across much in California.” Beyond onsite training and using high-tech chemistry laboratories to help find solutions to climate-specific challenges, 3D Canada’s attention is largely focused on providing long-term assistance to their customers. “Much of my time is spent on assisting shops and driving out to troubleshoot technical questions, and sometimes our sales people end up doing the same thing when there is an overlap,” says Walroth, who credits the company’s training culture for giving them the tools to be able to do this work. “We make sure that everyone on our team understands all aspects of our business, chemical and technical.” While 3D Canada’s training culture and troubleshooting strategy have earned Walroth’s admiration, he admits that spending so much time on the road is not the most relaxing part of his job. “Things get pretty busy sometimes,” says Walroth. “So it is nice to spend some time in the classroom.”
At the front of the facility is a shop aimed at capturing all kinds of car enthusiasts.
Barry Dixon watches as Brian Walroth demonstrates proper procedures to his class.
April 2018 collision Repair 45
FACTS & FIGURES
Labour of Love
Collision Repair magazine readers on working with family and hiring students By Gideon Scanlon
How do you feel about family-run businesses?
I
n last month’s survey, we asked readers to share their thoughts on working alongside family members, and their attitudes about working with summer students. On the subject of summer students, it seems that the community is of two minds. While opinions differ on whether it is better to pay more for a technician-in-training, or to go with the eager assistance of a fresh-faced high schooler, most agree that university students, with their know-it-all bravado and compulsive partying, are best kept out of the shop. First, however, our readers offer up their thoughts on the challenges of hiring and firing of relatives.
The Family Business
19.5
30.4
45.6
2.1
Enthusiastic (30.4)
Okay (45.6)
Very Good (19.5)
No Way (2.1)
In general, almost half of respondents describe themselves as either enthusiastic (30 percent) or very good (19.5 percent) when asked how they feel about family-run bodyshops.
Interestingly, just one in ten of those who do work in family For this issue’s first survey, we look at the family business model, asking respondents their opinions on working alongside businesses feel that the situation caused problems. When compared to the average Canadian employee in any field, one in those they love most. six of whom describe their workplaces Unsurprisingly, the vast majority of as dysfunctional, family-run shops are responses came from people working beating the odds. It is a fact that seems in family-run shops, comprising some to resonate with most of the respondents 95 percent of the total, with almost As for firing a familywho did not work in such facilities, with 70 percent of respondents being the member, just 18 percent two-thirds of them saying that they current owner of their family shop. would consider hiring a relation. In general, almost half of responof respondents have ever As for firing a family-member, just dents describe themselves as either done so, and all describe 15.2 percent of respondents have ever enthusiastic (30 percent) or very good done so, and all describe the decision (19.5 percent) when asked how they the decision as difficult. as difficult. A fact that one respondent feel about family-run bodyshops. 45.6 highlighted by describing an incident percent of respondents were of a slightly when he or she was forced to let go of more mixed opinion, responding that they were ambivalent about family-run shops because there were a troubled relation: “When the time came, it was necessary as as many advantages as disadvantages to the model. A little more his addiction got the better of him. It was done professionally than two percent of respondents, however, were truly horrified and there were no bad feelings amongst the family. It had to by the prospect of such a business, answering that there was be explained as a business decision by showing the negative “no way in hell” they would be willing to mix work and family. effects it was having on the business.” 46 collision Repair collisionrepairmag.com
FACTS & FIGURES
The Hiring Line
Have you ever fired a family member?
The end of the school year is quickly approaching. With summer just around the corner, there will be no shortage of freshfaced would-be collision repairers eagerly seeking short-term employment on the shop floor. Owners can expect a flurry of resumes that find their way onto their desks. No doubt many are already dreading the moment when a pile of papers, each one seeking to turn time spent over deep fryers or volunteer hours spent organizing balloon badminton tournaments into reasons for being hired, arrives on their desks. Bemused at the lack of hard data regarding the industry’s feeling on summer students, Collision Repair magazine invited readers to tell us the truth about whether they hire students, and what it is that they have them do.
, Yes
71.7
15.2 percent of respondents have fired a family member.
15.2
0
Unc
le
n eve ry on ssa ber, d job cisi e e m c d e o m ard n ne a go mily ry h bee a fa ’t doing ver a ve d e s e n r a n i s ere er f , it w it ha Nev they w Yes No, if
use e is Dav
2
0
less
Oth
er
What kind of work will your students do? Office (8.3)
66.6 41.6
Cleaning and Washing Cars (6.6) Prepping and Sanding (41.6)
As for what it was that students would spend their time doing, some 66 percent of the students who will spend their summers with our respondents can look forward to washing and cleaning vehicles.
Technician Helper (8.3) Other (16.6)
8.3 16.6
Asked if they had ever hired summer students in the past, 78.5 percent of the respondents say yes, though just 71.4 percent intend to do so for the coming summer of 2018. For the shops that would no longer be taking on summer students, the most commonly cited reason was a bad experience with a past student. With the vast majority of shops, only one student will be hired, with just ten percent of shops planning to take on two and another ten percent taking on three or more.
8.3
As far as qualifications are concerned, shops are split, with slightly more facilities looking to pay premium rates for students studying collision repair at a technical college, at 54 percent, and those who prefer the more economical assistance of high schoolers, at 45 percent. Interestingly, just 36 percent of respondents say they would consider the application of a university student. While more cost-friendly than technical students, respondents were vocal about their reasons for viewing university students as less appealing hires, which range from their
lack of long-term interest in the industry, to a sense of entitlement and an apparent tendency for them to arrive at work with hangovers. As for what it was that students would spend their time doing, some 66 percent of the students who will spend their summers with our respondents can look forward to washing and cleaning vehicles. For 41.6 percent, their time will be spent on sanding and prepping. In the shops with multiple hires, additional students will work as administrative assistance or take up short-term projects in IT and web development. April 2018 collision Repair 47
Innovative Business
The Cost of
Convenience Should you mobilize your services?
D
riven by the rise of cultural phenomena like fast food, efficient public transportation and the Internet, consumers are looking for ways to do things more conveniently down every avenue you can think of. In response, the industry is slowly undergoing a change in where the repair process actually takes place. In other words, mobile repair may soon be the norm. Work that just ten years ago was considered strictly ‘in shop only’ is now taking place in customers’ driveways. The biggest mobile repair business innovations thus far have been in dent repair, detailing and estimating, transforming them into completely on-the-go services. Shops are increasingly outsourcing work in regards to paintless dent repair (PDR) because, in most cases, it is much more cost effective than blending adjacent panels and wasting materials. Shop owners may question why they should outsource work that could be done in-house by their own employees. The answer is simple: the cost of convenience.
by Harland Goulbourne
In an economy where we have become used to buying products with a single click, convenience is no longer appreciated—it is demanded. The faster you can get customers back to normal life, the more valuable your services. And so collision repair facilities should operate on the premise that, ‘We don’t sell repairs, we sell the most efficient solutions to get customers safely back on the road.’ Another service that is taking off is mobile estimating. It, too, relates back to the cost of convenience theory. The beauty of mobile estimating is that it is simple for shops to implement and needs very little overhead to get going. Mobile estimates require a vehicle that contains a laptop, Bluetooth connectivity and a printer. UCC Mobile, estimating out of Regina, Saskatchewan made a small initial investment and garnered a return in the first month with $8,000 in sales building up to $14,000 in July 2017. April 2018 collision Repair 49
Innovative Business
Solera Canada (Audatex) is one of the industry leaders in automotive estimating software. “We strive to reduce cycle time in the business by allowing estimators to write a fast, accurate estimate the first time. This significantly reduces supplements, which means the repairs get done that much faster,” says Jordy Fujiwara, digital marketing lead at Solera Canada. “We understand the longer it takes, the more aggravating it is for customers. Our software is designed to create positive experiences for clients by creating value from accuracy and convenience.” Solera Canada’s software streamlines the estimating process in many ways, from integrating policy information to providing the estimator with interactive 3D parts and substrate models of the specific vehicle. Also lending itself to a mobile business model is detailing—at least during the warmer months in our Canadian climate. One such business operator, Joshua Dunand, owner of Amaris Premium Auto Care in Oshawa, Ontario, found his mobile detailing venture to be a roundabout way of getting customers into his shop. By first going directly to his clients to demonstrate the care and precision with which he would handle their vehicles, he earned customers’ trust enough that many eventually returned to him when seeking other automotive services. “It’s a means to get people in the shop door,” says Dunand. “One of the best things I do on the daily is interact with the clients and see how happy they are when I bring services right to their homes.” And what could be more convenient for customers than having their vehicle cleaned right in their driveway? Despite the benefits of providing convenient services, there are major issues shop owners looking to go mobile should watch out for. With paintless dent repairs services becoming more and more popular, shop owners should be weary of the variations in the quality of work that exists within the marketplace. As with any dent removal practice, the final result may only be as good as the environment it is performed in. Andrew Majik of MajikDent has been doing mobile PDRs for the last 19 years, and spent ten years before that on the tech side of the collision repair industry. He prefers to practice his service indoors whenever possible—whether that is performing the repairs using the customer’s garage or inside a client’s shop. The need to conduct mobile dents indoors can make mobile repairs difficult, if the repairer does not have such resources. “If you do it outside you can’t see as much. It is always best to do the repair inside if possible,” says Majik. Majik also warns shop owners to question mobile dent repairers that appear overly inexpensive. It is a specialized process that requires an experienced eye to get blemishes back to perfection without ruining a costly paint job. You get what you pay for, and a customer’s vehicle is not something worth taking risks on for cheaper services. One of the other challenges facing paintless dent repair has been the paint itself. Stemming from the industry’s switch to the more sustainable waterborne paint, the way in which the paint ‘flexes’ when moved has changed. Some dents that could be repaired before with polymer-based paints can no longer be repaired without repainting, because the waterborne paint tends to stretch less and simply crack instead. Weighing the costs and benefits of any new service is difficult and so it is essential to do your research and make sure you are employing the right repairer. Nonetheless, software like Solera’s and companies like UCC Mobile Estimating, Amaris Premium Auto Care and MajikDent are breaking down the shop walls on their way to bringing repair services directly to customers’ doors—or driveways, anyway. 50 collision Repair collisionrepairmag.com
Audatex Canada’s estimating software, available on mobile and desktop platforms.
Andrew Majik chasing out a dent without disturbing the vehicle’s paint.
Joshua Dunand, owner of Amaris Premium Auto Care, alongside his mobile detailing vehicle. The vehicle is equipped with water and power, making detailing possible from virtually anywhere.
STUDENT PERSPECTIVE
Expectation VS Reality
Students reveal negative impressions of the industry, pre-exposure Patrice Marcil, Brigitte Pesant and other members of the AIA team and students from Saint Joseph’s high school during a career day event.
T
he future of the collision repair industry lies in the unmarred hands of the students currently enrolled, or planning to enrol, in autobody repair apprenticeship programs. Consequently, it is important to understand what kinds of thoughts these future industry men and women have about it. This is exactly the mindset that led Patrice Marcil, chairman of CCIF, to investigate what it is these students are really looking for from the industry. It also inspired the creation of the Collision Industry-Education Committee put together by CCIF almost 2 years ago. The committee focuses on four aspects of the industry: roles in a collision centre, instructor development, workforce retention and school improvement. With this in mind, Patrice and his team began visiting schools across the country, hosting shop tours and asking students to participate in a survey about their expectations of the automotive industry. So far he has visited New Brunswick Community College (NBCC) in Saint John, N.B.; Northern Alberta Institute of Technology (NAIT) in Edmonton, A.B. and Centennial College in Toronto, O.N. “From an HR perspective, we need to know who [the students] are and what they want. We need to get to know our future employees better,” says Patrice. “It’s important to have feedback
by Tabatha Johnson
from the students. We cannot assume we know what they want, they are a different generation with different ideas.” The surveys gather demographic information from the participants (sex, location, willingness to move etc.) as well as questions about the students’ desires from the industry, their ideal work environment and reasons for joining the industry. One of the questions asks if future techs had received any negative ideas about the industry before entering into their programs. The responses were varied but plentiful. Many
respondents had heard about health and safety concerns due to working conditions and exposure to chemicals. One student responded, “The chemicals that are used in some area of the shop, are not the most desirable to be inhaled or ingested.” Another common comment was about the pay rate of techs in the industry being too low: “Pay is really low as compared to other industries,” said a student. Even more students recalled the number of times they had heard the automotive industry was a demanding and
Left to right: Patrice Marcil, Matthew Lindberg (NAIT), Bryce Nelson (NAIT), Brigitte Pesant (AIA).
April 2018 collision Repair 53
STUDENT PERSPECTIVE
Patrice Marcil speaking with two of the NAIT instructors, Bryce Nelson and Matthew Lindberg.
John Turner, general manager for SATA Canada with Collision Repair magazine’s vice president of industry relations and advertising, Gloria Mann.
“It’s important to have feedback from the students. We cannot assume we know what they want, they are a different generation with different ideas.” Patrice Marcil speaking at NBCC.
dirty environment to work in. Ultimately, none of the students enrolled in the program let the negativity persuade them, one student commenting, “There are negative things about every industry, that should not make someone choose an alternative.” Regardless, one has to wonder about other students who may have been led off the collision repair path by the naysayers. When asked where he thought the negative impressions had come from, Patrice says “Maybe stereotypes or misinformation. There are so many reality TV shows around cars now, but they are not representative of what the industry really is.” He also said that, from the survey findings, around 40 percent of the students who come into these programs thinking they want to work in the repair industry really do not—what they want to do is customize cars. “The balance is wrong,” he says. “It’s important to let them know that this is not what the industry really is.” In fact, according to the surveys, when asked which segment of the industry first attracted them to join it, 42.9 percent of respondents said custom shops with 49.7 percent leaning toward collision repair facilities. Not all students had heard negative thoughts about the industry. One student said, when asked if they had been exposed to such ideas, “Nope, it’s technically the same risks you take with most industries. 54 collision Repair collisionrepairmag.com
- Patrice Marcil
Some of the students surveyed at NBCC with their instructors.
Just have to work as safe and efficient as humanly possible.” Looking to improve the awareness of the industry, CCIF plans to continue hosting career day events, adding them to each of its meetings and forums. “We are going to bring existing and future students to where all the future employers will be. We need to educate the students and at the same time connect with the teachers and let them know we are here for them,” says Patrice. His hope for these initiatives is that they will lead to a more consistent collision
repair industry throughout Canada. “We are working in a national industry. We use the same insurers, franchises, brands and MSOs across the country—this logic of consolidation needs to apply to education as well. If we are at a point where all the cars are being repaired the same way, are the instructors using the same curriculum and are we teaching the same skills?” Going forward Patrice says CCIF’s focus remains always on profitability and sustainability of the industry, keeping up with technology and recruiting and retaining new talent.
FAMILY MATTERS
Anthony Iaboni and father Giuliano Iaboni. Anthony was first introduced to the auto repair industry through his father’s plastic bumper and fender remanufacturing business.
The Son also Rises Why you should bring family into the business By Allison Preston
T
he fast-paced lifestyle associated with running a business is difficult—especially when you’re trying to raise kind, intelligent and successful children. Some shop owner parents have found a solution: bringing their kids into the business. While simultaneously increasing the amount of time you have to hang out with your children, introducing them to collision repair at a young age can nurture a deep-seated passion for the autobody repair industry. Such was the case with three kids turned professionals. Anthony Iaboni, owner of Collision 360, Corey Carlaw, general manager at CSN-Carlaw and Joe Piercey, owner of Fix Auto Brantford, have had the collision repair industry ingrained into them—a magnificent consequence of a lifelong journey.
For Corey, following his father’s footsteps was never a decision. It was, as he puts it, ‘a calling.’ Corey has been around cars his entire life. “From the age of ten I would go into the shop on PA days,” he remembers. Corey spent most of his days off from school sweeping floors, washing cars, cleaning up and helping customers. Kevin Carlaw, Corey’s father, recalls a time when Corey was helping prep panels to paint. Corey came up to him, requesting further instructions on the project. “I want you to show me. I don’t want anyone else to show me.” He continues, “That’s when I knew he was going to be a part of this business. I knew then. I’m very proud to know that after all the effort we put into everything, he’s going to take over and keep the business going.” April 2018 collision Repair 57
FAMILY MATTERS
“I think it’s been ingrained in me. I always gravitate back to the industry in one way or another.” – Anthony Iaboni
From left: Kevin, Debbie and Corey Carlaw. Corey spent most of his days off from school cleaning the facility. Now he’s the general manager and an estimator.
Anthony adds, “I honestly think in hindsight now that I always knew I would be in the collision repair industry. I think it’s been ingrained in me. I always gravitate back to the industry in one way or another.” Joe Piercey, son of well-loved Sam Piercey who passed away in 2016, started getting “dragged” into his father’s shop around the age of nine. “I would come in after school and on Saturdays, sweeping and changing the garbage,” says Joe. “I eventually started prepping, which I did for a few years. By the time I was fifteen I could fully prep and paint cars.” Joe fondly recalls the mentors he had throughout his youth, the technicians who taught him and his father. “There were always people teaching me. I grew up fast,” he says. For Joe, the wish to stay in the industry largely stems from the skill level he was able to reach at such a young age, the learning
From Left: Sam Jr. Piercey, Diane Piercey, Sam Piercey and Joe Piercey.
The father-son duo now works together to run CSN-Carlaw in Peterborough, Ontario. “It’s awesome to work with family,” says Corey. Anthony had similar experiences growing up. His father, Giuliano Iaboni, ran his own company: Classic Bumpers and Fenders, a plastic bumper and fender remanufacturing business. Though Anthony went in a slightly different direction than plastic manufacturing, he does not doubt that working with his father was what sparked his interest in vehicle repair. Sales staff would often visit collision repair facilities with a young Anthony in tow. “That was the best aspect of the job. I loved going to work and I loved getting my hands dirty,” he says. “That’s how I was first acquainted with collision repair.” 58 collision Repair collisionrepairmag.com
Young Corey Carlaw and his sister, Natasha. Corey has been helping his dad at CSN Carlaw since he was ten.
FAMILY MATTERS
Another family in collision repair: The CSN JD Collision family. From left: Pat Dechaine, Paul Ouellette, Joe Dechaine, Rose Dechaine, Luc Dechaine and Joel Dechaine.
From left: Sam Jr. Piercey, his wife and daughter, along with Diane and Sam Piercey.
opportunities he received, and, frankly, the amount of money he was able to make given his skill set. “To be a good technician, you have to spend many years working on it. By the time I was fifteen, I was making a full wage, and I wanted to keep making money. It was great to be a teenager with a bank full of money,” he says. Today, Joe and his wife, Kate Tapley, have introduced their own children into the collision repair industry. “My kids were in their mid teens when they started working with me,” says Joe. A number of the lessons he’s learned from his father he hopes to pass onto his children, including always treating a car like it is your own and keeping in mind that these vehicles are important to their owners. They are one of the biggest investments people make. He teaches his children that they have to be dedicated to the work they do and improve all the time. But more than anything, he’s tries to show his kids to “have fun” with the work. Corey, Anthony and Joe have been a part of the collision repair industry since childhood. The strength in family ties that grow from being taught by, and sharing a passion with one’s parents is unbreakable. So, next time you’re heading to work on a Saturday morning, consider bringing your kids in with you. You never know where it may lead. April 2018 collision Repair 59
AV REPORT
Upping the The first self-driving semi to make it across the U.S. without a driver.
Will a tragedy slow the deployment of AVs?
I
t was going to happen sooner or later. At some point one of the AVs being tested on North American roads was going to strike a pedestrian. It happened recently in Tempe, Arizona, where a homeless woman was walking her bike across the roadway. Elaine Herzberg, 49, was the victim. The Uber self-driving car that hit her was in autonomous mode, with a human backup driver present inside but not operating the vehicle, making her the first victim to die in a collision with a fully self-driving autonomous vehicle. The reaction from media outlets around the planet has been swift. An endless number of stories appeared noting the tragic (but historic) bit of auto industry news. An important part of the AV story—the rapid rush to deploy AVs with barely any testing—leaked into the mainstream as many were surprised to find they’d been sharing the road with self-driving cars for some time already. As a well-known cycling advocate asked on social media: “There are self-driving vehicles on the road in Toronto? I’ve been sharing the road with self-driving vehicles? Are these safe?” It’s only been over the last year that AVs have begun to appear on the streets of North American cities. For those not following the
A self-driving Uber vehicle.
auto trade press—and that’s a majority of the population—you might not be aware that fully self-driving AVs are being tested and have been on the road in several cities for months now. Since the accident, Uber has been forced by the government of Arizona to take its cars off the road and it has halted testing. The state had previously lobbied heavily to get the Uber test program, but now government officials may be taking heat for allowing AVs on the highways of the state before the
60 collision Repair collisionrepairmag.com
most basic safety testing had been performed to satisfactory levels. According to a recent report, the family of the deceased has allegedly settled with Uber, though no indication had been previously given that they had even entered into a lawsuit with the company. Neither the company nor the family’s attorney, Cristina Perez Hesano, have issued statements other than to say the matter has been resolved. The local and federal authorities are still investigating the incident.
AV REPORT
antE
By Jeff Sanford
Canadian constitution must prepare for AVs The idea that there is a real shift coming in terms of the existing auto-based economic infrastructure is becoming a hot topic of conversation across the country. A media report from Manitoba stated that its provincial Minister of Infrastructure Ron Schuler is worried that the province’s current laws do not allow for driverless vehicles. “It’s coming very quickly, and certainly we want to be on the forefront of this. We want to allow for it, and want to do a test run from Calgary to Toronto. We want to be part of that,” Schuler said.
Ron Schuler, infrastructure minister in Manitoba.
He went on to talk about what it is the country’s governments need to do to be prepared for the inevitable arrival of AVs. According to the report, “Each province must have its own legislative and regulatory framework in place to allow for testing AVs. The federal government has to create national and international guidelines as well.” Schuler added “nobody’s too sure what the final products are going to look like. So we are all having these conversations and it is time we allow some testing to take place so everybody can have a look at it and say, ‘OK, that’s what it’s going to look like.’”
First autonomous semi completes trip across U.S. A company working on self-driving trucks, Embark Technology, claims that its autonomous semi just made its first cross-country trip in the U.S. The vehicle drove from Los Angeles, California to Jacksonville, Florida with, “Minimal help from its on-board human driver.” According to Embark Technology’s chief executive officer, “The autonomous tractor trailer completed a 3,800 kilometre trip from Los Angeles to Jacksonville in five days, travelling for hours at a time with no disengagements.” The executive added, “When [disengagements] did occur, they were usually only a few seconds.”
The trucks are equipped with five cameras, three long-range radars and two lights detecting sensors to map its surroundings in real time, helping it to avoid obstacles. As well, Embark plans to have installed autonomous technology in 40 more tractor-trailers by the end of 2018. The CEO was quoted as saying, “By allowing automation to work together with local drivers to handle less desirable long haul routes, we will be able to increase productivity to address the current 50,000 driver shortage while also creating new local driving jobs that attract younger drivers to the industry.”
Embark Technology’s CEO Alex Rodrigues.
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Global View
All roads lead to the repair shop Spotlight on Italy By Gideon Scanlon
I
n 312 BCE, the Roman Republic faced its darkest hour. Having unified central Italy under its authority, newfound prosperity made the city the target of every greedy Celtic chief, Etruscan general and Greek adventurer. Terrified, the city’s senators turned to Appius Claudius Caecus for a solution. Rising before the senate floor, the dashing patrician said, “As men are the architects of their own fortune, so must Rome build roads to become great.” While infrastructure spending was not what the senators had in mind, they agreed to the construction of a highway, enabling them to quickly counter any force that dared tread on their lands. For seven centuries, Rome’s roads served as the foundation of its military success, and they eventually stretched from Britain to Syria. Modern Italian attitudes toward road construction have become somewhat lax. Where ancient 62 collision Repair collisionrepairmag.com
engineers cut broad, direct roots through forests and across rivers, modern ones have preferred idyllic but dysfunctional roadways, dangerous for the motorists and pedestrians alike. Were Appius alive, he would be horrified. In writing this month’s international collision repair industry report, this magazine experienced the full horror on his behalf. Overcrowded, wending and in poor condition, Italy’s thoroughfares are now dangerous to traverse. Last year, there were 4.5 million accidents on the country’s 250,000 km of roads—though the vast majority were quite minor, with traffic slowing the speeds at which they occurred. By way of comparison, despite having 1 million km of roads, only 1.4 million collisions occurred in Canada. While a cynical repairer might feel slightly envious of the Italian driver’s stylish disregard for vehicular safety, the truth is that the situation has made the industry less profitable for owners.
GLOBAL VIEW
FACTS AT A GLANCE Population
61 million
GDP Per Person
$38,568.61
TOTAL VEHICLE FLEET
36.4 million
Collision Repair Facilities
8,500
Number of Insurers:
3
Hourly Labour Rate
$50 per hour
Built in 312 BCE, the Appian way was once the best maintained road in the world. Modern Italian roads, with their congestion and frequent mild collisions, are hard on commuters, insurers and collision repair shops alike.
Appius Claudius Caecus, a patrician of Rome, suggested the city’s senators build more roads in order to make the city “become great.”
Italian repairers may see far more customers, with so many minor accidents occurring, repair shops are filled with cars, and vespas, in need of only minor repairs. While the average cost of a repair in Canada is close to $3,500, over there they bring in just $1,600. Being in Europe, the shop owner must also contend with a culture far less comfortable with free enterprise. As a result of decades of a strong socialist movement, repairers must also pay their workers at a 25 percent premium—Canadian auto repairers earn just $40 per hour to their Mediterranean counterparts’ $50. Higher costs and lower returns aside, the Italian industry is quite similar to our own. The insurer-driven system is comparable, with more than 100 providers offering coverage but more than 70 percent of drivers receiving coverage from the top six companies.
Last year, there were 4.5 million accidents on the country’s 250,000 km of roads—though the vast majority were quite minor, with traffic slowing the speeds at which they occurred. Likewise, repairers in both countries are working with vehicles that are very similar, with the average car being eight years old in Italy and almost nine at home. Italians and Canadians also buy about as many vehicles, with 1.8 million new Italian cars to Canada’s 1.9 million in 2016. The similarities are, however, a bit of a moot point. While repairers in Canada may, in their darkest moments, fantasize about a Canada filled with the laissez-faire
approach to driving like that found in Italy, the truth is that our own economic model is far more profitable and that is only partly due to our laissez-faire approach to the market. While Rome’s roads were once the envy of the world, they are now the bane of its repair industry. Long dead, bodyshop owners may not be able to seek the council of wise Appius, but it is easy to surmise what he would suggest: “Build more roads.” April 2018 collision Repair 63
Report on Training
presented by
Skills Ontario building momentum for young women in trades
S
kills Ontario recently announced its upcoming event series, Young Women’s Career Exploration Events, as part of its Young Women’s Initiatives. The series is to be held across Ontario throughout 2018 to bring young women information and experience to begin a career in a skilled trade. “Young women need to know that the trades offer many opportunities that can lead to bright, stable and successful futures,” says Ian Howcroft, chief executive officer, Skills Ontario. “Skills Ontario looks forward to continuing to work with our partners from government, industry and education to increase the momentum for gender equality, and a strong and diverse workforce.” The event series will culminate in the Young Women’s Conferences at the Skills Ontario Conference, May 7-8, 2018 at the Toronto Congress Centre. The Skills Ontario Young Women’s Conferences are the largest young women’s conferences in Canada, attracting over 2,000 young women from across Ontario to attend.
The under-representation of women in skilled trade and technology professions continues, with under 14 percent of registered apprentices being female, according to a 2015 Statistics Canada survey. According to a press release, Skills Ontario seeks to change misconceptions about the
skilled trades being dirty, low-paying and generally unsuitable to female workers. The education and mentorship portions of the Career Exploration Events and Young Women’s Conferences help make it easier for young women to see themselves in a similarly rewarding career.
I-CAR announces 2018 International Board of Directors and Executive Committee Following its annual membership meeting in San Antonio, Texas, I-CAR announced its 2018 International Board of Directors and Executive Committee. The board of directors sets the overall strategic direction for the organization while assisting with obtaining resources in support of the I-CAR mission. “I-CAR is a critical component that enables our industry to properly repair vehicles. As we look to the future, we know responding to the changing market faster is becoming critical,” Tim O’Day, chair of the I-CAR International Board of Directors says. “The changes are only going to accelerate, meaning I-CAR must work even harder to ensure our industry has the information, knowledge and skills required to perform complete, safe and quality repairs. The I-CAR board of directors remains committed to sustaining that vision.” The board of directors is comprised of representatives from each of the following six industry segments: collision repair; insurance; OEM vehicle manufacturers; equipment, tools, and supplies; education, training and research; and related industry services. Tim O’Day of Gerber Collision & Glass will lead as chairman of the board and chair of the executive committee. In addition, the following members will serve on the executive committee:
• Kyle Thompson, USAA (vice chair) •
Ron Vincenzi, Chilton Auto Body (treasurer)
•
Mark Allen, Audi of America (secretary)
•
Robert Hills, Universal Technical Institute (member-at-large)
•
Jim Guthrie, Car Crafters (member-at-large)
•
James Roach, American Honda Motor Company (immediate past chair)
The remaining directors include: •
Mark Algie, 3M
•
Roy Schnepper, Butler’s Collision
•
John Donley, IAnet
•
Jeanne Silver, CARSTAR Mundelein
•
John Eck, General Motors Company
•
Randy Stabler, Pride Collision Centers
•
Chris Evans, State Farm Insurance
•
Marcy Tieger, Symphony Advisors LLC
•
Daniel Friedman, Enterprise Holdings
•
Gary Wano, GW & Son Auto Body
•
Tim Hession, GEICO
•
Sandee Lindorfer, Allstate Insurance Company
•
Richard Perry, Chief Automotive Technologies
•
Gerry Poirier, Farmers Insurance
April 2017 collision Repair 65
Report on Training
presented by
Color Compass hosts diagnostic scanning event Color Compass recently held a diagnostic scanning event bringing in over 100 shop owners and technicians.“The response from attendees of the show has been extremely positive. Feedback from those who already purchased the units often said they were unaware the scanner could complete all the functions it can. There have also been requests for the advanced training modules already. Demo requests for the scanners are high, with a week wait or more currently,” says sales manager Sean Skoropat, White & Peters. Going into the event, many shops had already expressed an interest in the scanning equipment and the discussion surrounding it. In fact, extra chairs had to be brought in to accommodate a larger than expected crowd. Those present included existing users of the scanning technology, looking to learn more about the tool’s functionality, and new buyers looking to compare with other diagnostic equipment. “Some shops who were comparing scanners have opted to order the LAUNCH tech based on what they saw during the presentations,” says Skoropat. The presentation showcased many of the tool’s features, including its remote tech access. The presenter connected to the vehicle and completed the initial report and functionality tests from his scanner while the tech watched and assisted in the vehicle. During the live scanning presentation, one of the scan techs stood across the street
The LAUNCH product booth at the event.
to demonstrate the range of the Bluetooth connector, activating the lights and horn on the vehicle from his distant vantage point. The presentation went through the three training modules set to be run at Color Compass University in April. Each of the modules explores the different levels of functionality of the tool and works through the more advanced testing, diagnosis, sensor re-learns and recalibrations. Skoropat concludes, “Overall, to have such a good turnout when many shops are experiencing equipment overload shows us that the need for these types of events is there. Collision repair is rapidly evolving and equipment sophistication increases alongside. After sales support, training is key to ensure the shop realizes the full potential of the investment and that customer confidence in the brand remains high.”
Collision 360 hosts aluminum rivet bonding course Collision 360 recently hosted a training event at its training centre in Toronto. Anthony Iaboni, owner of Collision 360, says, “I get asked on a regular basis about repairing the new F-150.” In response, he decided to host a training event where a set of repairs could be performed on the vehicle live. His hopes for the event were that when attendees left, “The techs will know what to do when they get the F-150 in their shops.” Beforehand, Iaboni acquired a complete aluminum F-150 box. During the event, Iaboni guided the 50 shop owners and technicians who attended the course through the repair procedures live, following the repair data from ALLDATA. Iaboni partnered with team members Tom Widmer and Juan Cordova from SEM, Art Ewing from Pro Spot and Russel Duncan from Color Compass and PBE to provide the training on the F-150 and the necessary aluminum rivet bonding. SEM gave attendees the inside scoop on its adhesives for rivet bonding and Pro Spot demonstrated how to remove and replace the rivets.
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From left to right: Tom Widmer, Art Ewing, Juan Cordova, Anthony Iaboni and Russel Duncan.
To the benefit of those in attendance, two replacement F-150 box sides were donated by The Humberview Group specifically for use during the training event. Cordova, the eastern regional sales manger for SEM, says, “It’s not about selling the product alone. It’s about training the customer how to use the product. Anthony provides solutions for the technicians. He is extremely passionate about training and partners with manufacturers who support his training in the industry.”
Elevating the Industry The Canadian Collision Industry Forum provides a national venue for all collision industry stakeholders to network, share information and collaborate to develop solutions to common industry issues and challenges. CCIF meeting speakers and/or panel discussions address the following three main CCIF priorities: • People | Human Resources
• Profitability | Sustainability
• Vehicle Technology
Montreal Airport Marroit In-Terminal Hotel (Located in Montreal-Pierre Elliott Trudeau International Airport) 800 Place Leigh-Capreol, Dorval, QC H4Y 0A4 Canada
ccif.ca
RECEPTION
THURSDAY, May 24, 2018: 7:00 PM – 10:30 PM
MEETING
FRIDAY, May 25, 2018: 8:30 AM – 3:30 PM
Breakfast and Registration
7:00 AM – 8:30 AM
CCIF Vancouver 2018 – September 27-28 September 27 @ 7:00 pm - September 28 @ 3:30 pm UTC+0 RECEPTION
THURSDAY, September 27, 2018: 7:00 PM – 10:30 PM
MEETING
FRIDAY, September 28, 2018: 8:30 AM – 3:30 PM
Breakfast and Registration
7:00 AM – 8:30 AM
Insurance News
Insurance tax meets the axe The government of Newfoundland and Labrador has voted to cut a five percent retail sales tax on auto insurance for four years in order to stabilize the province’s insurance market, which, to borrow from the local vernacular, appears as healthy as a sick clam at low tide. The Insurance Bureau of Canada’s government relations manager for the Maritimes, Tom O’Handley, described the move as a “significant step in the right direction,” adding that, “Auto premiums in Newfoundland and Labrador are already the highest in the Atlantic region.” With the highest insurance premiums in the East Coast, Newfoundlanders pay rates about 40 percent higher than the national average. With the IBC suggesting that the premium-priced premiums stem from a lack of competition in the insurance market, the move may help to solve this problem by lowering entry barriers to the market. The move also makes Newfoundland and Labrador the only province without a tax on auto insurance premiums, though it may not
Newfoundland and Labradorians will see a four-year tax cut on their auto insurance premiums.
be the only significant measure taken to restore market stability. The IBC has called for the province to conduct a full-scale review that will “Consider how to encourage more insurers to compete in the marketplace and offer more choice and lower prices to Newfoundlanders and Labradorians.”
New government, old problems for the ICBC gested that the company could generate $59 million from the revenues generated by a new speed camera program. The report mentioned that additional revenues could help offset pressure on basic insurance premiums, punishing bad drivers and rewarding the ones who follow the rules of the road. Not only The ICBC has spent more than five years and close to $780,000 on still-incomplete repairs for a Ferrari that would the initiative keep costs down, crashed into a pole in 2012. it would discourage the unsafe driving behaviour that has lead to an increase in Measures taken by the provincial government collisions in B.C. over the past five years. to help buoy the finances of the Insurance This week, the NDP government announced Company of B.C. (ICBC), which lost $1.3 that the revenues would not go to the ailing insurer, billion last year, may not be paying off. but to municipal budgets. At a press conference, Last month, an independent report into the Attorney General David Eby announced that, “This ways to ease the financial crisis at the crown red-light camera initiative is not a revenue-genercorporation, written by Ernst and Young, sug- ation piece for ICBC. It’s not going to be creating
money that will help close the financial gap.” While using traffic ticket revenue to fund municipal budgets is par for the course in B.C., the tactic has raised eyebrows among Liberal ML as members of the NDP had criticized the Liberals for diverting ICBC funding. One of the other measures taken by ICBC was an increase in the premiums paid by drivers of luxury vehicles. On April 1, drivers of passenger vehicles worth between $125,000 and $149,000 saw rates spike between 10 and 15 percent, and drivers of even more expensive vehicles will pay an additional 20 percent. It recently emerged that the ICBC had spent five years, and close to $780,000 on repairs for a Ferrari that was driven into a pole in 2012.The car remains undrivable, with a total repair bill expected to come in close to a million dollars.
Aviva explores the fringes of insurtech in its digital garage Canadian insurance companies are lagging behind its international peers in its use of connected car technologies to monitor driver behaviour, or so Aviva Canada’s digital innovation chief Ryan Spinner believes. During a speech at the companies second-annual InsurTechCanada Digital Garage, held in Toronto on March 1, Spinner was just one of several speakers who suggested that Canada’s auto insurers were lagging behind in terms of tech. “People, especially regulators, understand mobility is changing and we have to have a really good honest conversation with the different parties involved and how we protect drivers,” said Spinner. “It is an evolution of every business, not only of the car manufacturer, but our own, and of new the new businesses popping-up.” Other speakers at the sold-out evening event included Kyle Mojito marketing director Kyle MacDonald and Ontario Centres of Excellence’s automotive technology director Raed Kadri. 68 collision Repair collisionrepairmag.com
Auto experts and insurance industry leaders at InsurTechCanada, held in Aviva Digital Garage in Toronto.
MacDonald demonstrated a tool that could be attached to some late-model vehicles in order to collect data for the insurers, which could be attached to cars in exchange for the opportunity for good drivers to be rewarded with lower premiums. Kadri suggested that Ontario may be one of the earliest ‘hotspots’ of autonomous vehicles, partly because of liberal regulations and centres of research.
Insurance News
Repairing Repairer Reputation An open letter to CTV from Collision Repair publisher Darryl Simmons has garnered considerable attention online and in the repair community. The W5 report, which had suggested that bodyshop fraud was rampant within the industry after as small-scale study alleged that eight-of-nine bodyshops had made fraudulent repairs. Simmons, a leading voice covering industry topics for the past two decades, described the coverage as “unfairly casting a negative pall on legitimate and professional repair facilities across the country.” “Your team’s recent television broadcast report on a select few bodyshops specifically in the Toronto area raised the same concerns of the vast majority of the 5000 or so professional and legitimate collision repair facilities across the country; namely that the tactics used by a small number of shops are tarnishing the reputation of an industry dedicated to preserving public safety on Canadian roads. Some of the recent improvements towards a self-regulated marketplace include certification, advanced technical training, as well as
Collision Repair magazine publisher Darryl Simmons rebuked CTV for its coverage of an Aviva investigation into alleged bodyshop fraud.
pre-and post-repair scanning,” said Simmons in the letter. “Your report, although somewhat misleading, is certainly timely as it coincides with the industry’s consistent open conversation for the betterment of itself and how to eliminate those few who tarnish the reputation of the many.” Simmons message was echoed across a variety of social media platforms, even garnering the approval of senior figures in other areas of the automotive aftermar-
ket, including Craig Snelgrove, a general manager and vice president at Enterprise Rent-A-Car. In a LinkedIn comment, Snelgrove wrote: “Well said Darryl. Though the story was interesting it really shows a small segment of the industry with towing and ‘bad actors.’ This could help shine a light on legitimate participants in our industry and make consumers more aware of they impact their choices can make.”
April 2018 collision Repair 69
British Columbia | Regional News
B.C. to lower capital requirements to save ICBC Provincial Attorney General David Eby announced that the Insurance Company of British Columbia (ICBC) will no longer be required to have enough capital available to cover the cost of claims. “So, we had to change the rule in order to appear in front of the utilities commission to lay out the changes we’re doing with ICBC to get back on track financially,” said Eby. Believed to have lost $1.3 billion last year, the insurers’ reserves of cash-on-hand had dipped below 54 percent of the amount mandated by the Crown. Without Cabinet’s assent, the ICBC would be unable to make last month’s emergency rate-hike permanent. As a public business, the announcement, which described the move as part of a broader effort to restore financial stability to the ICBC, was no surprise. While Crown corporations can be sanctioned for failing to live up to their fiscal duties, closing down the insurer would cause a crisis as insurance is mandatory for Canadian drivers and the ICBC is, by far, the largest auto insurer in the province. Last month, Eby referred to the ICBC’s financial situation as a “dumpster fire,” one he has suggested was largely the fault of the previous government which had used ICBC funds to help sustain provincial spending.
Believed to have lost $1.3 billion last year, the insurers’ reserves of cash-on-hand had dipped below 54 percent of the amount mandated by the Crown.
Nicholas Jimenez, CEO of ICBC.
April 2018 collision Repair 71
Regional News | Alberta
Carlson Body Shop Supply participates in the Autorama World of Wheels At the recent Autorama World of Wheels event in Calgary, Carlson Body Shop Supply, a division of Color Compass, co-sponsored the Student Pedal Car Challenge during the student career day. Jamie Corbeil, Southern Alberta sales manager for Carlson Body Shop Supply summed up why the sponsorship means so much to the company’s team. “It is a fabulous event and we were honoured to be part of student career day again this year. It’s exciting to see the students so engaged through their pedal car designs. The creativity expressed by each school was inspiring. We hope events like this will continue to attract the next generation of skilled technicians into the collision repair industry.” The pedal car challenge provides an excellent opportunity for a team of automotive students from each area high school to apply their technical skills. Participating schools were provided one pedal car to customize and show off at the event. The Carlson technical
The first place winner at the Student Pedal Car Challenge at this year’s Autorama World of Wheels.
sales team assisted the schools with product application and procedures, enabling them to follow the typical collision repair process from metal work, to sanding and preparation to final paint procedures. The day kicked off with a discussion in the auditorium, with over 300 students in
attendance. Guest speakers from many sectors of the automotive industry encouraged the students to follow their passion for automobiles and consider a career in the automotive industry. Carlson Body Shop Supply’s own general manager Dave Swenson also spoke during the event.
CARSTAR Red Deer earns prestigious I-CAR Gold Class accreditation The CARSTAR location in Red Deer officially earned the I-CAR Gold Class accreditation recently. In doing so, it joins a league of outstanding collision repair facilities. “The tremendous team at CARSTAR Red Deer understands what customers have gone through, and they work tirelessly every day to ensure they provide premier service with industry leading repairs in an effort to alleviate any customer worries,” said Darryl Hemstreet, co-owner, CARSTAR Red Deer. “Getting the certification was a large undertaking, but worth it, as now everyone knows that we provide Gold Class worthy collision repairs.” Darryl runs the shop alongside his brother Brian Hemstreet. According to the pair, their co-owned CARSTAR location has been a trusted staple of the community for over 20 years. Both brothers have remained true in their commitment to operating standards and customer service, and show an ongoing investment in advanced repair technology, which is what inevitably earned them this certification. We’re proud to have CARSTAR Red Deer recognized as one of the top collision centres
The repair team at CARSTAR Red Deer.
in Canada,” said Michael Macaluso, president, CARSTAR North America. “Across the country, customers and our insurance partners can rely on CARSTAR to deliver this highest quality collision repair and excellent customer service.” The Gold Class recognition is the highest role-relevant training achievement recognized by the collision repair industry. It is estimated
72 collision Repair collisionrepairmag.com
that only ten percent of repair shops currently meet the rigorous Gold Class standard. The I-CAR Professional Development Program provides collision repair and insurance businesses with a reliable training framework for acquiring Gold Class and maintaining up-to-date knowledge and skills that contribute to proper repairs, improved business performance and risk reduction.
Regional News | Saskatchwan
Saskatchewan association hosts Mike Anderson Mike Anderson has never worked a day in his life. The enthusiasm and passion for what he does clearly illustrates that none of his seminars are work to him. Rather it is pure joy for Mike to be able to impact collision industry stakeholders in a positive way resulting in his vocation being his avocation. How sweet is that? This is the goal that so many us strive for, but many fail to achieve. The good news is that Mike explains it is attainable for all of us—if we simply choose to make a difference. Mike’s style is a blend of high level understanding of the challenges to the collision repair industry coupled with a down home folksy way of connecting with everyone in the room. From the crusty 60-year technician to the peach fuzz faced youngster in the room there was a genuine appreciation for the transparent way that Mike easily shifts from technical issues to life lessons that we all need to hear. His story about being ‘Albert,’ a young boy, short and gifted with Tourette’s syndrome was priceless. He tells of going to the school dance and being afraid to ask a girl to dance for fear of being rejected. He goes on to explain that his dad takes him to one of the dances and strongly encourages Mike to ask a girl to dance. His first attempt was a dismal failure but eventually he gets a yes! Lo and behold, this kid can dance! From then on, he understood that if you never take a chance you never get an opportunity to win. He stated “So many of you are playing not to lose rather than playing to win” encouraging our folks to move out of their comfort zone and aim high. Ciaran Downes, a senior manager of SGI’s Appraisal Transition team was in attendance and when asked what he thought of Mike’s presentation he replied that it exceeded his expectations. “I came here thinking I might get a few jabs coming my way but there was absolutely none of that, he simply stated the facts!” After Mike’s presentation more than a hundred bodyshop personnel moved over to a quaint little Scottish pub called Bobby’s Place and enjoyed each other’s company while reminiscing about the great day of fun and learning that was experienced. All in all, it was a great weekend.
Mike Anderson visits SAAR.
April 2018 collision Repair 73
Regional News | Manitoba
Rondex concludes threeday annual general meeting
The Rondex team during their three-day annual general meeting.
After three days in Winnipeg, Rondex concluded its second annual general meeting (AGM). The meeting focused largely on maintaining strong relationships with company partners and defining the company brand moving forward. “The keyword is family,” say James Sun, marketing assistant, Rondex. “It’s a family-owned business. We care about our customers and take the extra mile to show them love and make them feel like they are part of the family.” The meeting aimed to polish the company’s mission value statement. According to Sun, they went through the mission statement “as a company, word by word” to ensure they were using the proper terminology to define what their business stands for. The company flew in its branch managers from nine of their locations across Canada so they could attend the meeting. They took the time to introduce any new managers and welcome them into the organization. “We try to eliminate the blind spots by having a monthly management team update meeting,” says Bret Greenwood, chief executive officer, Rondex. For the company “it was a great team-building opportunity.” The meeting started by employees sharing their expectations for this year’s AGM. Other topics covered during the three days included reviewing sales numbers from 2017 and allocating budgets for the coming year. The company also spent time in a workshop with a guest speaker all the way from Australia, Alan Mitz. They brought in Mitz to facilitate discussion about the company’s progress and how they can further improve their policies and processes. Proposed improvements included doing a quarterly review on the company’s performance based on the merits proposed at the AGM.
Con artist offers fake repairs While collision repairers must be very competitive if they hope to remain profitable in the industry, one Winnipeg man, who claims to be in the industry, appears to have found a sure-fire way to make a buck—by conning elderly women. Winnipeg police have received multiple reports of elderly women being approached by a man who, claiming to be concerned about a fictitious mechanical issue on the car, offered to fix it for a fee. According to one victim, the self-proclaimed mechanic waved her down, saying her vehicle was too dangerous to drive. Agreeing to allow the man to fix the vehicle, the elderly woman paid $45 for the privilege of getting her not-at-all-wobbly tire un-wobbled. In response to the reports, the city’s police issued an order telling drivers that they were not obligated to stop if told to by anyone other than the police. 74 collision Repair collisionrepairmag.com
www.autorecycling.com
Nestled in the small town of Lumby, in the interior of BC. D&M Auto Recycling has found a home for itself, and have been going big ever since. Situated centrally to supply all of western Canada with Quality used parts, D&M Auto Recycling has upwards of 27 acres of land and 42,000 square feet of warehouse space, overflowing with late model insurance write off vehicles and parts. Since day one of moving to our rural location, we have focused our business plan to stock and keep only the highest quality parts available to our market; we do not stock end of life vehicles, only parts we trust to supply to our customers.
But it is not always business at D&M! We are always strong supporters of the town we call home and the community that supports our cause. Our staff are always volunteering to help this community grow in any way we can, from our yearly float in the Lumby Days parade, competing in Halloween and Christmas decorating light up contests, bringing the local schools on yard tours showcasing our environmental impact, and so much more. Due to our involvement, we were given the honor this year of receiving the Lumby Chamber of Commerce Business of the Year award, as voted by the community itself, in recognition of the efforts we are putting towards making our small town great. At D&M we are always growing. Whether it is our business and the best ways we can supply our customers, or the ever expanding sculptures and gardens that we have built for the community outside our offices, every day at D&M is something new and exciting. We may have found a small place to call home, but it is the best place to go big. And big is what D&M is all about. Check us out at www.autorecycling.com and see what we are all about!
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Regional News | Ontario
System Shock: Ontario’s $5 million EV Charging Station incentive program bled dry in six weeks Just six weeks after the Ontario Ministry of Transportation announced a $5 million initiative to promote sustainable transportation by helping building owners install electric vehicle charging stations, the funds have been exhausted. The Workplace Electric Vehicle Charging Incentive Program (WEVCIP) was launched on January 16, but was so successful that the ministry was forced to announce that it was no longer accepting new applications. Under the original terms, the government would contribute a maximum of $7,500 per charging station. With the initiative having already run its course, Ontarians can expect 650 new stations to be completed within the next six months.
The Ministry of Ontario’s $5 million investment will help pay for more than 650 new charging stations.
While the program has been suspended, there is good news for Ontarians who are interested in receiving financial support from the province. The ministry’s information page appears to suggest that the government is considering making additional funds available for EV charging stations.
“If you have already submitted your application and did not receive a notification of approval, you will be placed on a waitlist (subject to eligibility). Funding may become available as projects are completed or if additional funding is identified,” the page reads.
St. Brother Andre Catholic High School students win TADA skills competition second year in a row One of the events hosted at this year’s Canadian International AutoShow saw a showdown between 18 high schools in the GTA. The competition, the 19th annual Toronto Automotive Technology Competition, involved teams of students from the schools demonstrating their high-octane skills. Two automotive technician students from St. Brother Andre Catholic High School in Markham, Ontario prevailed over the 17 other teams to win the competition for the school’s second year in a row. Christopher Giuga and David Vecchiarelli performed a number of timed technical tasks and worked on a new Volkswagen Tiguan that had been rigged with a nostart condition by automotive instructors from Centennial College.
Winners of the Toronto Automotive Technology Competition, David Vecchiarelli and Christopher Giuga.
By finishing first, the pair will represent Canada at the National Automotive Technology Competition in New York City this April. In addition to the all-expenses-paid trip, Giuga and Vecchiarelli received tools and equipment from sponsors. Scarborough’s Woburn Collegiate finished second, thanks to the efforts of students William Chee and Rishivaran Raveendran, while Kjanseh Mohan and Thanuraj Pathmanathan from Jean Vanier Catholic
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Secondary School earned third place. The automotive labs at all three schools will receive a donated vehicle from General Motors Canada for training purposes. Teacher Franco Ferrari of Woburn Collegiate earned the Gerd Reisenecker Memorial Teacher of the Year Award, named for the former Centennial College professor and TADA member. The Toronto college operates Canada’s largest transportation technology training centre.
QuebÉc | Regional News
Concrete decision: Provincial Liberals to invest $15 billion in Quebec roads Half of Quebec’s roads are in dire need of repairs, with a government report suggesting that the cost to repair them would be around $15 billion. During a press conference, provincial Transport Minister André Fortin suggested that Quebecers have grown inured to the problems, but said the issue would be confronted. “Nobody’s waking up this morning saying ‘Oh, our roads are so much worse than they were yesterday,’” said Fortin. “They use the roads every day. We’re putting forward the proper money to fix the issue.” Facing some of the most extreme temperatures of any province in Canada, Quebec’s roads are particularly vulnerable to strain from seasonal expansion and contraction. While extreme weather and poorly maintained roads often lead to a rise in accidents, bodyshops do not appear to see any additional business as a result of these
Frost heaving has left more than half of Quebec roads in dire need of repairs, though drivers appear to be used to the problem.
infrastructural failings. In fact, it may be that the poor conditions have Quebecers paying extra attention behind the wheel. While there is not public information about how many non-fatal collisions occurred on provincial roads, the insurance rates paid by Quebec’s drivers are far lower
than in other provinces, about half of Ontario premiums. With plans to put $20 billion toward infrastructural investment, three-quarters of Quebec’s infrastructural budget for the next decade will be devoted to roadwork.
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Atlantic | Regional News
Fix Auto expands in the Maritimes, welcoming Halifax and Dartmouth to the network Mark Weeks, general manager for Fix Auto Atlantic Region, recently announced that two new locations have joined the Fix Auto network in Halifax and Dartmouth, Nova Scotia. The Steele Auto Group owns multiple dealerships with integrated collision repair centres in and around Halifax, and has been in the automotive industry since 1990. Fix Auto Halifax and Fix Auto Dartmouth are both stand-alone facilities that are not integrated into a dealership but rather provide services to the broader markets and customer bases. The Steele Auto Group has grown its network of dealerships and collision centres through multiple acquisitions over the past 28 years. “As the company grew, numerous dealerships were added to the group, many of which had integrated body shops,” said Graham Owen, general manager, Fix Auto Halifax and Dartmouth. “Having our own collision repair facilities means we are able to provide complete vehicle service and repairs for our customers and ensure that the repairs are made to factory specifications by our accredited, highly skilled technicians.”
For the team at Steele Auto Group, joining the Fix Auto network was based on shared values. Much like Fix Auto, they shoot for superior customer service, high quality repairs and facilities, and ongoing training. “We are pleased to offer our customers state-of-the-art facilities, modern and comfortable waiting areas, and highly trained staff who consistently strive for perfection,” noted Owen. According to the company, Fix Auto provides ongoing support and a comprehensive selection of operational and management tools as well as strong relationships with insurance partners across Canada. Weeks concluded, “We are very pleased to partner with the Steele Auto Group team. Their experience, knowledge and passion for the industry over the past 28 years is inspiring. Their ongoing commitment to customer satisfaction and industry-leading collision repair work is echoed within the Fix Auto network and we are looking forward to supporting the team as they continue to grow their business under the Fix Auto banner.”
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Fix Auto Dartmouth. (From left) Bret Keddy, Hayley Rogerson, Zach Nolan and Jeff Hubley.
Fix Auto Halifax. (From left) Brooke Nichols, Rick Purcell and Paige Ritcey.
NEWS
Art Ewing to retire as sales and marketing director of Canada Art Ewing will retire as sales and marketing director of Canada. Pro Spot. “Art has been not only a member of our team, but a member of the family,” said Ron Olsson, President of Pro Spot. “His knowledge and commitment to the company and our customers made him a vital component of our success. We wish him the best in his well-deserved retirement.” Art will continue his association with Pro Spot in a marketing advisory role. “My time with Pro Spot has been very exciting. It’s been great working with such a talented team,” said Ewing. “Looking back on this wonderful journey I can honestly say we took care of business, and had a great time along the way. Our distributors are so dedicated to looking after our customers and it’s been an honour to work with each of them. Pro Spot will continue to be the industry’s innovator and will have even greater success in the future. I thank Ron
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Art and Janice Ewing. Art joined Pro Spot in 2014.
and the whole team for supporting our efforts in the Canadian market.” Russell Duncan, previously the equipment specialist for Color Compass, will succeed Ewing as Pro Spot’s new sales and marketing director for Canada on April 1, 2018. Duncan has worked closely with
the Pro Spot line of equipment. “I am honoured to be taking on this role,” he said. “I’m ready to continue building on this incredible brand in all facets of the company – sales and marketing, training, engineering, manufacturing and distribution.”
NEWS
General Motors Canada manufacturing facilities now landfill-free Joining its St. Catharines Propulsion and CAMI Assembly, General Motors’ (GM) Oshawa Assembly has announced that its operations are now 100 percent landfill-free. St. Catharines Propulsion and CAMI Assembly have been operating landfill-free since 2008 and 2014, respectively. General Motor’s Oshawa facility recently “Diverting waste from converted into a landfill-free location. landfills by reducing, reusing, recycling and recovering waste—including cutting GHGs from erations—more than any other OEM. With the addition of its Oshawa transporting and landfilling waste, and in the supply chain—roughly offsets the total GHG Assembly to the list of landfill-free emissions from our manufacturing operations,” operations, GM is now diverting 100 percent waste from landfills at all Casays GM Canada president Steve Carlisle. The Oshawa Assembly and the Cana- nadian manufacturing facilities. In Ontario, the waste sector is respondian Technical Centre (CTC) Oshawa Campus are the latest Canadian operations sible for approximately six percent of to join GM’s growing list of landfill-free greenhouse gas emissions. GM Canada facilities. General Motors now operates has become a leader and is setting an 142 global facilities that recycle, reuse or example for businesses to strive for convert-to-energy all waste from daily op- zero-waste operations.
BASF Canada reduces carbon footprint with Bullfrog Power’s green electricity BASF Canada announced its partnership with Bullfrog Power to help decrease its carbon output. The new environmentally friendly standards will be put into place at BASF’s headquarters, as well as production facilities in Windsor, Cornwall, Etobicoke, Blackie, Nisku, Saint Leonard and Saskatoon. “Through the partnership with Bullfrog Power, BASF is supporting an innovative approach to growing Canada’s renewable energy industry,” says Marcelo Lu, president of BASF Canada. “BASF wants to contribute to a world that provides a viable future with enhanced quality of life for everyone. Partnering with Bullfrog Power means BASF is helping to support community renewable energy projects across Canada.” According to a press release, the agreement with Bullfrog Power ensures that 100 percent renewable electricity is put onto the grid to match the amount of conventional electricity being used at BASF’s Canadian corporate headquarters and its production facilities. Across Canada, Bullfrog’s green electricity comes from a blend of wind and low-im-
Sean Drygas of Bullfrog Power and Marcelo Lu of BASF Canada.
pact hydropower sourced from new Canadian renewable energy facilities. Ron Seftel, chief executive officer, Bullfrog Power, says, “BASF’s partnership signifies that manufacturers in the supply chain increasingly see energy as a key input when making their products more sustainable. As a global leader and major chemistry company in Canada, BASF is taking a proactive approach to addressing climate change by proactively committing to renewable electricity at its Canadian sites.” April 2018 collision Repair 81
NEWS
BASF named one of Canada’s Top Family-Friendly Employers for 2018
BASF Canada president, Marcelo Lu, speaks to employees at a holiday luncheon celebration in the Distillery District.
BASF Canada as one of Canada’s Top Family-Friendly Employers in the 2018 list of Canada’s top employers. The list, which has been compiled for the last 18 years by Mediacorp, appeared in a supplement in The Globe and Mail. “At BASF Canada we recognize that fostering an environment where everyone feels valued, supported and respected is at the core of our success,” said Terri Howard, director of human resources for BASF Canada said in a press release. “We provide flexible work options that enable our employees to adapt to the needs of various life stages. Additionally, every employee brings diverse perspectives, experiences and lifestyles that contribute to our unique identity and allow us to innovate in all that we do.” The citation credited BASF Canada’s comprehensive efforts to help employees balance their family commitments outside work, including 17-weeks parental leave top-up and flexible career development opportunities as reasons for the honour. The competition reviews a range of employment practices and policies, including: maternity, parental and compassionate leave; daycare assistance; reproductive assistance, including fertility drugs and IVF; adoption assistance; paid personal and earned days off programs; flexible work arrangements and academic bursaries for employees’ children. For more information about the award and its winners, visit canadastop100.com. April 2018 collision Repair 83
NEWS
PPG develops new paint mobility team PPG is looking to the future with a new paint mobility team specifically in place to develop paint technologies for electric cars and autonomous vehicles. “PPG has a long history of providing paints and coatings that help automotive manufacturers protect and beautify vehicles, as well as coatings applied to bridges, roadways and public infrastructure. Mobility promises to not only change how PPG delivers its products to customers, but also what our customers will do with those products,” says Calum Munro, a senior scientist at PPG. The company is aware that these innovative vehicles will require different technologies to maintain their paint coatings, as the wear and tear they endure will be different than the average driver operated vehicle. The types of coatings the company is focusing on goes beyond standard external coatings for auto
body parts. They are also looking at coatings for mechanical and electric parts. PPG discussed new developments of the paint coatings they have been working on for battery packs found in electric and hybrid vehicles at the North American Interna-
tional Auto Show last month in Detroit. The Auto Show showcase from PPG also featured their improved coatings for darker coloured vehicles, allowing them to be more visible to infrared sensor technology used by autonomous vehicles. In a recent announcement PPG revealed current plans include coatings to help maintain a vehicle’s cleanliness, inside and out. They are testing paints that are smudge-free, so the cameras and sensors in autonomous vehicles are not obstructed by smudges and debris. For interiors one area of development is focusing on maintaining pristine cleanliness with ride-sharing autonomous vehicles in mind. For exteriors the company is continuing to develop better coatings for LIDAR reflectivity, related to AVs detecting other vehicles on the road. For more information visit ppg.com.
CARSTAR Peterborough donates van to Big Brothers Big Sisters In early March, Jim and Cathy Shirtliff, owners of CARSTAR Peterborough, along with sponsors from Enterprise Rent-a-Car, Burrows Insurance Brokers, LKQ, Fitzsimmons Towing, Kings Auto Wreckers, Autographics Peterborough, Wurth, Akzo Nobel and Peterborough Petes, presented a refurbished van to the Big Brothers Big Sisters of Peterborough to support its community programs. According to Cathy, CARSTAR franchises are often involved in these types of donations across the country, though this was the first time it had been done in the Peterborough area. “We just really want to become more community-oriented and helping out an organization like this has an immediate local impact,” she says. As part of the program, the CARSTAR location will find a total loss vehicle from a salvage company and either purchase it or propose a donation from the company. The rest of the repair, including the parts
The CARSTAR Peterborough team with the van they donated to Big Brothers Big Sisters.
and the time required to fix it, is purchased and donated by the CARSTAR franchise and its local sponsors. The charity the vehicle goes to is chosen by the CARSTAR location itself, with a focus on a local need. Big Brothers Big Sisters was selected by Jim and Cathy’s team due to their obvious transportation needs. “They shuttle kids
around on a regular basis,” Cathy says. The other sponsors provided help in many different forms, says Cathy, including financial support, labour hours, technical repair assistance and the artwork and decals that were placed on the vehicle itself. For more information about CARSTAR, please visit carstar.ca.
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New Products
Noteworthy tools for your business AirPro Diagnostics: ORION AirPro’s ORION is a cloud-based diagnostic management system. The company describes the software suite as offering a simple, streamlined platform for shops to view scan data on a user and mobile-friendly device. Said to offer a simple way of decoding VINs and automatically produce scanning and invoicing reports, the software is designed to seamlessly interact with CCC One accounts. For more information, visit: airprodiagnostics.com/orion.
Autel: MaxiSys Ever wish for a tablet tough enough to handle the rigours of the shop floor? According to Autel, MaxiSys utilizes an A9 quadcore 1.40GHz processor and a 9.7” HD touch screen. With an Android-based operating system, Autel says the scanning tablet offers the most up-to-date coverage of OE-level diagnostics, making the device a diagnostic solution for shops and technicians looking to use smart technology to make smart repairs. For more information, visit nauteltech.com.
Chief: The Meridian Chief ’s new live measuring system is comprised of two parts: the Meridian computerized system and the Galileo laser scanner. The Meridian and Galileo components work together to provide techs with measurements of vehicles needing repair. According to Chief, the Meridian can measure up to 45 individual points on a vehicle, allowing for real-time 3D imaging of a vehicle, even during repairs. Chief says that using the Meridian system allows for faster frame measuring, more accurate estimates and more precise repairs. For more information visit chiefautomotive.com/Meridian. 86 collision Repair collisionrepairmag.com
New Products
Chief: The Galileo Scanner The Galileo scanner utilizes laser technology which helps increase measurement length up to five metres. The geo-spatial control system makes necessary adjustments to provide precise measurements no matter what direction the scanner is tilted. Chief says the scanner features dual processors for rapid data processing, optical components for accurate readings under any lighting conditions, and a built-in calibration check. The Galileo self-levelling laser scanner is said to feature a 360-degree field of view with improved line of sight. The system requires a subscription to Chief ’s Thunderbolt vehicle specifications. For more information visit chiefautomotive.com/Gallileo.
Car-O-Liner: PointX The PointX measuring tool comes accompanied with Car-O-Liner’s Vision2 software, meant to guide technicians through repairs and track diagnostic data. Made from carbon fibre, the tool is said to be to be lightweight for one-handed magnetic fixes. Car-O-Liner boasts the new tool’s automatic three-dimension measurement calculations, intuitive user interface and software and electronic documentation capabilities. With the PointX’s ability to track measurement data, technicians will now have the documentation needed to charge customers for their diagnostic work, a necessary step in every repair. For in the motion, visit car-o-liner.com.
Matrix Electronic Measuring: The Matrix Wand Wands may long have been a symbol of society’s least scientific minds, but one scanning tool is reversing that trend. The Matrix Wand is designed to identify hidden damage. According to the developer, it can reliably blueprint work to be carried out and verify repairs by comparing outcomes to Mitchell’s database, which is integrated into the system. It can also create reports that can be easily sent to to insurers. For more information, visit thematrixwand.com.
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Tow truck drivers protest on Ontario highway Highway 417 in Ottawa recently saw a protest of nearly 60 tow truck drivers between Orléans and downtown. The drivers flashed their lights and honked their horns in a show of disapproval over a monopoly that drivers argue has been given to two towing companies by local police. City councillor Scott Moffatt was less than sympathetic toward the towers’ pleas, tweeting, “What are tow truck drivers protesting? Their unregulated market where they can gouge unassuming customers left, right and centre?” One responder cited several reasons for the protest, including “Equal Opportunity Employment, a fair and regulated market, the right to provide food and shelter for not only ourselves but our families and our rights as individuals.” During an interview at the scene of the protest, one of the drivers, Ahmed Kocyigit says, “We need to be able to put food on the table for everybody. Everybody should have the fair, equal chance and we’re not getting that.” In a current contract, it is delegated that during the course of an investigation police must use certain approved towing companies for what they
Currently only two towing companies are contracted to be used during police investigations.
are calling a “secure tow.” Currently, only two companies in Ottawa have been mandated for police use under the contract: Metro Towing and Recovery and Ottawa Metro Towing Recovery. The contract appears to already be under fire from a lawsuit filed by Gervais Motors, on the grounds that both towing companies are in reality a part of the same company, although the allegations have yet to be proven in court.
Other towers are claiming that the monopoly given to the two companies excludes their services from potential future work. A recent report shared an internal memo distributed to the officers at the local detachment, urging them to abide by the contract with a strict warning of the officer’s personal liability if he or she decides to use a different towing company when clearing a crime scene.
Saanich towing rates to soon rise to match Victoria’s New measures are being put into motion in Saanich, British Columbia, in order to raise fines for drivers parking illegally on private property. Brent Reems, director of building, bylaw, licensing and legal services says, “The main basis of the rate changes was to adjust for inflation. We have a bylaw in place that sets the rates for towing and it hasn’t been adjusted since 2009. We wanted to make sure the rates are reflected in today’s dollar. We also did a wider review that involved members of the community and members of the towing industry.” The proposed increases will raise basic towing charges from $72 up to $85. “We looked at comparable municipal rates from municipalities in the surrounding area and
New towing rates will be reflective of dollar inflation since the last update in 2009.
the increase reflects rates similar to those in the city of Victoria. We also took into account the rates used under the motor vehicle act by police services when they require towing services,” says Reems. More complex tows will garner even higher charges, but the final rate has yet to be ap-
proved, following advice from industry persons. “There were some charges added for the use of dollies and slings to reflect the cost, time and equipment those tows require. These types of tows are becoming more common given the placement of newer vehicle transmissions, so the rates should reflect that,” says Reems. august April 2013 2018 collision Repair 89
Contents
Recycling News.................... 91 - 95
Auto recyclers reduce Massachusetts CO2 emissions by 2.5 percent – study
Troy Regene Generoux of Parkway Auto Recyclers passes away “An ordinary guy who lived an extraordinary life.” This is how Troy Regene Generoux (May 8, 1971 – March 16, 2018) of Parkway Auto Recyclers is described by those who knew him. An integral member of his church and community, and loved by both his family and “Parkway family,” Troy will be greatly missed by all.
Massachusetts estimates the state’s total emissions to be about 75 million tonnes per annum.
Last January, Worcester Technical College, a leading metallurgical school, attempted to tally the scale of carbon savings brought about by safe automotive recycling in Massachusetts. The answer was staggering— by recycling about 150,000 vehicles each year, Massachusetts’s recyclers reduced the state’s total footprint by about 2 million tonnes—2.5 percent. When Automotive Recycling Association president David Gold saw the numbers, he fell out of his chair, before picking himself up and calling for a meeting with the ARA board—a meeting where it was resolved that the board would meet with environmentalists in Washington. “We have been making the environmental case for years, but we have always lacked clear scientific data,” Gold says, “this is
Troy’s children describe him as a “one-of-a-kind dad.”
something we can point to and say ‘here is the evidence – it is independent, it is scientific, it is reliable.” While the idea of Massachusetts manufacturers environmentally efforts being roughly equivalent to taking almost 400,000 vehicles off the road might sound unbelievable, it is important to understand how the numbers were reached. So how could the cost of not recycling a vehicle is as environmentally damaging as 30 months of driving it? If we just consider an entirely scrapped vehicle, think about what a reduction in metal demand can prevent. It takes an immense amount of fossil fuel to mine ore and purify into ingot. A scrapped vehicle is simply melted down. No mining and purification required. Continued On Page 92
The number of people Troy had an impact on is reflected in what people had to say about him. Troy’s children, Rowan and Gillen, wrote about their father, “You were a one of a kind, special dad, who always put us first in your life. We knew you were proud of us. We will love you forever.” His parents, Vic and Donna, wrote, “You are our beautiful, ‘brown-eyed’ boy. We couldn’t have been prouder of you and the way you lived your life.” A co-worker wrote, “You were not just a co-worker. You were a true friend who brought so much fun and joy to everyone. You will never be replaced.” Several initiatives are currently taking place to honour the life of Troy in a way that simultaneously raises up the communities in which he lived. Parkway Auto Recyclers in Kitchener is accepting donations for a local food bank with the goal of filling up
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features
Continued From Page 91
Next, there are the savings that come from making productive use of the parts that are put to new, productive purposes, rather than being scrapped. When parts are manufactured directly, auto workers drive to their factories, their factories use energy to reshape plastics, weld metals and machine parts, all of which have also needed energy to be produced. While little attention is traditionally paid to the costs of manufacturing car parts, it is an issue that Steven Fletcher, managing director of the Automotive Recyclers of Canada, has been struggling to bring to the public’s attention for years. “The circular economy favours reuse component over recycling. Recycling is great, but we can make more of an impact through reusing.” Already an avid supporter of the industry, Gold had previously worked with the University of Windsor on studies looking at the environmental impact of recycling end-of-life vehicles. With the arrival of the
Produced under the direction of the institute’s top academic, Professor Brajendra Mishra, the study’s greatest challenge was in explaining the knock-on carbon savings of the industry.
Massachusetts study, however, Gold believes auto recyclers could benefit from increased academic attention in all areas. “I would love to see ARA members come together to help with studies about the industry, already, you don’t have to be an eco-freako to realize we are important,” says Gold, adding that, “The more insurers and OEMs understand the economic benefits of working together, the more they will be willing to bring down barriers for us and be willing to work together.” Fletcher also believes that inter-industry relationships will soon be on the upswing. “The biggest roadblock for our industry is that dealers are thinking short-term. They make more money selling a new part—they make short term profits at our expense, but
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that could hurt them in the long-term.” With vehicles becoming increasingly complex, the metals used in manufacturing them become more and more expensive. “Their demand outweighs the supply, and it will become much more expensive to make a vehicle without us.” says Fletcher. “Both recyclers and manufacturers would benefit from reducing the arbitrary divisions.” When the ARA board meets with Washington environmentalists, the ARA has two goals in mind: To encourage their partners to begin to recognize how much recyclers are already doing to reduce the automotive sector’s carbon footprint and push the American government to support the circular economy at a legislative level.
features
Continued From Page 91 The Automotive Recyclers Association’s new logo. The design is said to underscore the organization’s commitment to sustainability.
The Parkway Auto Wreckers facility, Troy’s place of employment.
an entire truck with goodies for community members in need. Troy’s cousin, Abby Micks will be riding for “Ride to Conquer Cancer,” in memory of Troy from June 9 – 10. Others are welcome to join and support her cause. As well, family and friends of Troy encourage others to donate to the World Accord, to help residents of third world countries in need. There will be a celebration of Troy’s life on Sunday May 6 from 1:00 to 4:00 PM at the Waterloo Regional Police Association.
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ARA logo rebrand celebrates new environmental direction On Monday, January 8, The Automotive Recyclers Association (ARA) revealed its brand new logo. Beyond being a simple update of the organization’s historic vehicle and globe, the blue vehicle on a green logo is a celebration of the association’s new, environmentally aware direction. In a statement, the ARA explained the new logo is designed to highlight the association’s “commitment to sustainability and focus on the reutilization
of automotive parts and components.” ARA President David Gold commented, “Our new logo better exhibits what Automotive Recyclers Association represents today. We’ve retained visual elements that reflect our history, but we provide greater focus on our important role in environmental sustainability and the circular economy.” The special redesign was timed to coincide with the group’s seventy-fifth birthday in 2018.
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features
2018 OARA Conference coverage On Thursday, March 22, more than 350 auto recyclers came together for the highly anticipated Ontario Auto Recyclers Association (OARA) conference. The threeday event was the best-attended OARA conference in the organization’s history, speaking to its influence and importance within the community. It also received a record number of non-member delegates, prompting executive director Steve Fletcher to quip that: “Word is getting out!” Opening with an executive meeting on Thursday evening where the 2018 board was chosen, the Friday saw the majority of guests arrive. With twenty speakers delivering relevant and exciting presentations on everything from changes in tire disposal regulations to strategies to build online sales, the schedule was jam-packed with information, from how the end of the current tire exchange program would be handled, to the best ways to approach a fluctuating precious metal market. Over the course of the presentations, a common theme began to emerge: there is a considerable amount of money to be made by developing a tiered approach to digital sales. In his presentation on how to make the most of product descriptions on CarPart and Car-Part-Pro, company president Jeff Schroeder suggested that firms could benefit by selling competitor’s products that were not in their own inventory. He was particularly pleased to note that, with more and more Ontario recyclers adopting this tiered approaches, the industry looks poised to capitalize on this new approach. This theme was further explored in keynote speaker JC Cahill’s lively presentation, “Who Moved My Cheese.” In his first speech of the convention, the owner of New England Auto and Truck Recyclers lovingly called on his Canadian peers to get with the times. “A customer doesn’t know whether a part you are advertising comes directly from you, or if it is from another supplier,” Cahill said, “But do they care? No. They just want to know that you can give it to them.” On Friday afternoon, the trade show brought more than 50 innovative and note worthy exhibitors with 57 booths to the Hilton Conference Centre. 94 collision Repair collisionrepairmag.com
features
Wally Dingman (centre) says goodbye to the OARA board. To celebrate Wally’s years of dedication, he was presented with the OARA member of the year award.
Towards the end of the trade show, the winners of the charity draw were announced by Steve Fletcher (with the eager assistance of a number of the conferences youngest guests). The event raised $21,000 for the children of OARA members’ employees, going toward their respective scholarships. During the final day, the board took some time to thank one of its longestserving members. After fifteen years on the OARA board and eleven as the chair, Wally Dingman announced he would be stepping down late last year. To celebrate Dingham’s years of dedication, he was presented with the OARA member of the year award by his successor, Greg Woodbeck of Woodbeck Auto Parts. “I don’t want to speak for Wally, but I am sure he’d agree that his work promoting and implementing EASR is one of his greatest accomplishments on the board,” said Woodbeck. “Wally’s presence on the board will be missed.” Woodbeck, who was re-elected to serve as chairman, embarks on his second term alongside treasurer Mary Poirier of Valley Automotive and secretary Derek Nissen of Hank’s Auto Wreckers, both of whom were also re-elected. Newcomer Darrell Pitman, of P&G Auto, was also chosen to serve on the board. While Dingman may be stepping away from OARA, he is happy to see that younger members, like Woodbeck and Pittman, are interested in becoming involved in significant ways. 95 collision Repair collisionrepairmag.com
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Recycling
ChooseRecycled The OARA is kicking off a new campaign By David Gold
A
s I write this article I am chuckling because of a TV commercial I saw last night from Fix Auto. It aired during the Raptors’ game at the local hot spot I was at with a group. My friends and I were thoroughly amused with the quality and creativeness of the commercial—very witty! Not only that, the commercial is good for all professional collision repairers and it certainly enhances the industry’s overall image. Seeing this commercial certainly brings to mind the impact good advertising can have on and for an industry. While larger collision repair banner groups have the resources and savvy to create targeted advertising campaigns, auto recyclers are, for the most part, smaller entities and as such benefit greatly from the work of their association to create awareness. For many years Steve Fletcher and
gain the recognition that it has lacked for so long and keep the continuity of that message strong all of the time. Our industries are so closely tied to one another and we are always trying to find ways to make doing business more seamless and robust. This is a big part of our mission and what we do every day. I would welcome everyone to have a look at chooserecycledparts.com and provide some feedback. Also, perhaps our industries should consider the opportunity to work together with our provincial and national association to see where we can find more common ground to help ensure that both our industries prosper with the ever-changing advancement of the automobile going forward. For your reference, below is the memo that was sent to ARA members promoting the awareness campaign:
We as an association believe In a unified message from coast-to-coast. the OARA team created great campaigns for its members to use and benefit from to help further the auto recyclers’ interests and grow the recycled parts marketplace. Now, ARA—our national association headquartered out of Washington, D.C. has followed suit on a concerted effort. The reason this initiative is positive for all stakeholders is because we understand that more needs to be done to promote the positive aspects of auto recycling, and thereby make the collision repairer’s job easier when recycled parts are incorporated into the repair. The ARA has dedicated a special committee and outside marketing group with this in mind—to create the most appropriate message when it comes to recycled auto parts. We as an association believe in a unified message from coast-to-coast that can be used by industry publications when recycled auto parts are the topic of the day would be very helpful. As such, the ARA awareness campaign was created. This campaign is meant for all to use and benefit from and we believe it will not only help all auto recyclers but also, perhaps, the customers that never before considered a recycled part as a viable option. The “Choose Recycled Parts” campaign that we are promoting is something that we are so proud of and we hope all auto recyclers will be as well, some of whom have already told us that this is the “best thing that the association has ever done for us.” The concept here is to pool our resources and make it easy for our industry to 96 collision Repair collisionrepairmag.com
As the first quarter of 2018 comes to a finish, I wanted to take this opportunity to thank you for your continued support and membership in ARA. Since taking the reigns as president of ARA back in November, I have been busy working with the executive committee team, our member volunteers and staff to make sure we accomplish as many tangible goals as possible in 2018. To that end, I want to make sure that each and every one of you is aware of our “Choose Recycled Parts” branding campaign. This exciting new marketing campaign launched during the ARA Convention and is designed specifically for our industry. Influencing customers to use genuine recycled OEM parts is a priority for every member of ARA, and as such, I hope that you and your company will consider incorporating the “Choose Recycled Parts” resources into your own marketing initiatives. Imagine how far our collective message can spread if everyone—recyclers, affiliate chapters, industry suppliers, vendors—works together using this targeted message! I hope you will join me in the movement! David Gold of Standard Auto Wreckers is a founding member of Fenix Parts and holds the title of President for Canadian Operations. Locations in Canada include Toronto, Port Hope and Ottawa. He can be reached at 416-286-8686.
the last word
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3-D Measuring..................................45 3M........................................................7 AkzoNobel...........................................9 ARSLAN ...........................................35 Assured Automotive..........................71 Audatex.............................................74 Automotive Recyclers of Canada....95 Axalta...............................................99 BETAG .............................................48 Canadian Hail Repair........................38 Carcone’s Auto Recycling................93 Cardinal Couriers..............................85 Car-O-Liner........................................4 Car-Part.com.....................................97 CARSTAR Canada.............................15 CCIF..................................................67 CIIA...................................................66 Collision 360.....................................24 Color Compass.................................11 Conservation Ontario.......................64 Crescent Industries..........................79 D & M Recyclers...............................75 Equalizer...........................................43 Eurovac.............................................59 Finixa.................................................23 Fix Auto Canada................................51 Formula Honda.................................21 Garmat...............................................73 GFS...................................................70 Hollander...........................................40 Honda................................................29 IBIS....................................................77 Impact Auto Auctions......................90 Kia......................................................17 Martech.............................................81 LKQ...................................................56 Polyvance.........................................19 PPG Canada.....................................2,3 ProSpot.............................................82 SATA Canada....................................52 Sherwin Williams..............................18 Skills Canada....................................84 Stark..................................................88 Steck.................................................34 Symach.............................................69 Thorold..............................................92 Tiger Auto Parts...............................83 Transtar..............................................13 UAP....................................................19 Valspar.............................................100 Wedgeclamp.......................................8 Wurth.................................................55
The economics of collision repair By Jeff Sanford
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n this country, the premier publicly traded collision repair company is, without a doubt, the Boyd Group Income Fund from Winnipeg. The company is organized as a trust rather than a corporation— a legal distinction that is tax friendly for investors— and it has delivered an outstanding return-on-investments over the years. In 2007, units in Boyd traded around $1.40. Fast-forward to March of 2018 and they were trading at $101, a 7,400 percent increase in eleven years. It is the sort of success that leads investors to spray champagne and wake up drooling in yesterday’s suit. It is the consolidation of the North American collision repair industry that has spurred on this growth. In simple terms, when the number of shops and shop owners decrease, the ones that remain share more of the business between them. No wonder it seems some others are intent on trying to do something similar. Another publicly traded organization in the auto-service category in this country is AutoCanada. The company has not had the straightforward success that Boyd has had—shares are still well-off previous highs. But it is an interesting company that seems set on carrying out a consolidation play à la Boyd. When AutoCanada released its latest numbers the company also announced its first foray into the U.S. market with the purchase of an Illinois-based dealership group. The company has also announced it signed a new credit agreement that will give it access to a maximum $1.08 billion, some $350 million of which is earmarked for acquisitions. AutoCanada became the first publicly traded organization to sign a public company master agreement (PCMA) with General Motors (GM) of Canada, which allows the company to take direct ownership stakes in GM Canada dealerships, something they were previously unable to do. In the case of the U.S. acquisition, AutoCanada also bought into some brands —Ford and Toyota—that it would not be
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allowed to buy into here. This led to some speculation about whether the AutoCanada U.S. acquisition may influence Ford and Toyota to change rules around ownership in Canada. All of this would clear the way for more acquisitions by AutoCanada. But will the company ever challenge the success that Boyd has had over the past decade? Hard to say—the businesses are different. But looking into the breakdown of AutoCanada’s profits by business segment reveals an interesting story. According to the latest filing, the collision and mechanical repair departments within AutoCanada dealerships are the real profit centres in the company. The 54 dealerships under the AutoCanada umbrella processed approximately 870,000 service and collision orders in about 1,000 service bays in 2017. That work brought in a mighty amount of revenue, $3 billion, an increase of 9.3 percent over the year prior. But what is interesting are the relative contributions of the various business lines to gross profit. According to the earnings report, while new vehicles accounted for a mighty 59 percent of the company’s total revenue, that activity provided just 25 percent of gross profit. On the other hand, the collision and repair bays provided just 13 percent of total annual revenue, a relatively small bit there, but a huge piece of gross profit with a very healthy 41 percent. Clearly, collision repair pays. If AutoCanada is getting set to move further into the U.S. market it will be interesting to see if it can become the kind of investment that Boyd has. But it seems Boyd—and collision repair in general—have the higher margin business. You have to wonder, why bother with vehicle sales? Stick to where the profit is generated!
Jeff Sanford is a staff writer at Collision Repair magazine. He can be reached at jeff@collisionrepairmag.com.