February 2010 www.bodyshopbiz.com
Bodyshop CANADA’S MAGAZINE FOR COLLISION REPAIR PROFESSIONALS SINCE 1970
BUSINESS UNUSUAL
Predictions and Warnings from the 2010 Outlook Survey
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Bodyshop CANADA’S MAGAZINE FOR COLLISION REPAIR PROFESSIONALS SINCE 1970
contents
February 2010 l Volume 39, Issue 1
Features 16
Gaining Ground Particularly in a difficult economy, new advancements in business management software can help your shop keep ahead of the game. Find out which applications you could be leveraging today.
19
Let’s Make a Deal With the imminent conversion to waterborne, many shops are scrambling to find the best options for their new spray booth equipment. Find out how some distributors can help ease the pain.
22
Efficiency Now How efficient is your shop? The experts at I-CAR offer up some tips and insights on how to make the commitment to improving your overall efficiency. We also include a handy troubleshooting chart for efficiency-killing spray-gun problems.
Cover Story
12
Business Unusual With a rocky 2009 now behind us, find out what people in the industry think the first year of the new decade will look like, as we unpack the results of our 2010 Outlook Survey.
16
19
In Every Issue 4
Viewpoint
28
Subscription information
6
News
29
Advertiser index
24
Photofile
29
Internet directory
25
Products
30
From the publisher
visit us at bodyshopbiz.com In the next issue: We take a look at what it means to be a "green" shop, from marketing to operations. Plus: the industry's most comprehensive automotive recyclers directory, paintless dent repair and more. www.bodyshopbiz.com l February 2010 l Bodyshop 3
Bodyshop CANADA’S MAGAZINE FOR COLLISION REPAIR PROFESSIONALS SINCE 1970
viewpoint
New Decade, New Blood The flipping of our collective calendars from the aughts to whatever we’re going to call this new decade (I’m partial to the “twenteens” personally) can be seen as a new beginning— a chance to wipe the slate clean and re-evaluate the way things have been done in the past, but with an eye to the future. Flipping through the pages of this issue, you’re bound to come across a few articles that will inspire some thought and perhaps even motivate some action, but in this particular instance there is a message to be highlighted that could be easily missed by just reading the features independently of each other. One of the great benefits of my seat here at the magazine is that in putting together each individual edition, I get to design the whole, as opposed to looking at it in its individual parts, and its was while compiling a few separate sections that an interesting disconnect jumped out. In the news section this month you’ll find an item about the release of a pair of studies from CARS and the Canadian Apprenticeship Forum. In those surveys it was determined that while many shops across the country do have an active apprenticeship program, nearly one-third (31%) of all shops do not. In isolation, the figure is noteworthy enough, but combine that with the comments that flooded my inbox as part of our 2010 Industry Outlook Survey (also more fully unpacked in this issue), and the contrast/dichotomy is troubling. While the survey asked a few “choice and option” questions, it also asked for some more detailed feedback on a couple of specifics: namely, what challenges did you see moving forward in 2010? Looking through the results, the number of respondents who said that staffing, finding quality technicians, and labour shortages were their number-one concern was remarkable. Now I understand the arguments against bringing in apprentices—
which isn’t to say I agree with them. Many owners claim it’s too high an investment to make, managers say it’s difficult getting them up to speed, and technicians don’t like working with untrained people. However, those arguments only contribute to the current state of affairs, a state in which onethird of shops do little or nothing to train the next generation of technicians and managers, while a large percentage bemoan the lack of talented labour in the industry. Quite simply, you can’t have it both ways. What’s more, the collision repair industry is certainly not the only trade that is looking to entice a new generation of talent through its doors. Many in the bodyshop business who dismiss an apprenticeship program altogether—claiming, perhaps, that trained young techs are poached by a shop down the street—are missing the point. If apprenticeships are not abundant and appear to be readily available, young people today will simply pick some other trade that will welcome them with open arms and opportunities. With a one-third opt-out rate, the collision industry is losing out on talented kids before the hard part — convincing them to stay — even begins. B J.D. Ney, Editor jdney@bodyshopbiz.com
EDITOR J.D. Ney 416-510-6839 jdney@bodyshopbiz.com PUBLISHER Andrew Ross 416-510-6763 aross@bodyshopbiz.com SALES MANAGER Jay Armstrong 416-510-6745 jarmstrong@bodyshopbiz.com ACCOUNT MANAGER Jim Petsis 416-510-6842 jpetsis@bodyshopbiz.com PRODUCTION MANAGER Steven Hofmann 416-510-6757 shofmann@bizinfogroup.ca ART DIRECTOR Lisa Zambri PRINT MANAGER Phyllis Wright CIRCULATION MANAGER Selina Rahaman 416-442-5600 ext.3528 CUSTOMER SERVICE Roshni Thava 416-442-5600 ext 3555 VICE-PRESIDENT Alex Papanou PRESIDENT Bruce Creighton
BODYSHOP is published by BIG Magazines LP, a div. of Glacier BIG Holdings Company Ltd. 12 Concorde Place, Suite 800, Toronto, ON M3C 4J2 Phone 416-442-5600 Fax 416-510-5140 Subscription rates: Canada – $39.95 (add applicable taxes) per year, $62.95 (add applicable taxes) for 2 years, single copy $7.00. USA and all other foreign – US$61.95 per year. U.S. single copy US$10.00. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent. US Office of Publication: 2424 Niagara Falls Blvd, Niagara Falls, NY 14304-1118. Periodicals postage paid at Niagara Falls, NY. US Postmaster: send address changes to Bodyshop PO Box 1118, Niagara Falls, NY 14304-1118. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Tel: 1-800-268-7742 Fax: 416-4422191 E-Mail: privacyofficer@bizinfogroup.ca Mail to: Privacy Officer, Business Information Group, 12 Concorde Place, Suite 800 Toronto, ON M3C 4J2 ISSN 0045-2319 Canada Post Canadian Publications Mail Sales Product Agreement No. 40069240 Return postage guaranteed. Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept. — Bodyshop Magazine, 12 Concorde Place, Suite 800, Toronto, ON M3C 4J2 We acknowledge the financial support of the Government of Canada through the Publications Assistance Program towards our mailing costs. PAP Registration NO.11024 Member of Member of Inc. Inc.
4 Bodyshop l February 2010 l www.bodyshopbiz.com
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Copyright © 2008 DuPont. The DuPont Oval Logo, DuPont ™, ColorNet ®, and Cromax ® are trademarks or registered trademarks of E.I. du Pont de Nemours and Company or its affiliates. All rights reserved.
news
CARS to Release Apprenticeship Study In a study to be fully released sometime early this year, The Canadian Automotive Repair and Service (CARS) council released some initial findings in its regular newsletter. The national apprenticeship numbers were surprising, given the industry’s looming labour shortage. Some of the early results are: • 69% of aftermarket shops in Canada have apprentices working in them, while 31% do not. These are the findings from an employer survey conducted by CARS as part of its current national labour market research. • 32% of autobody and collision repair shops are experiencing difficulty retaining apprentices, compared to 23% of shops in the overall industry. • 67% of journeypersons, when offered the opportunity to train apprentices, are very willing to do so, while another 37% are somewhat willing. What’s more, a study from the Canadian Apprenticeship Forum (CAF) indicates that employers often reap the long-term rewards of a solid apprenticeship program. According to the CAF, employers who invest in hiring apprentices get a return on their investment, often within the first year. That is the overall conclusion of a recent study conducted by the Canadian Apprenticeship
Forum (CAF), which gathered information from over 1,000 employers across Canada on what impact apprenticeship training has on their business. The study showed that, on average, employers across all trades get a return on investment of $1.47 for every dollar spent on apprenticeship training. This amounts to an increase of nine cents from figures reported in 2006. The study found the revenue generated by an apprentice far exceeds the total training costs. Employers of automotive service technicians get a return of $1.69 for every dollar spent, based on a cost of $250,016 and benefits of $423,138. Motor vehicle body repairers get an average of $1.72 back on costs of $210,088 and benefits of $497,636.
50 Reasons to Celebrate For the fourth straight year, the British Columbia Automobile Association (BCAA) has been named one of Canada’s 50 Best Employers. BCAA, which employs just over 1,000 people across B.C., ranked no. 46 on the list and joins five other B.C.-based organizations on this year’s national 50 Best Employers list. The prestigious annual list, compiled by international HR consultants Hewitt Associates and published in the Globe and Mail’s Report on Business Magazine, is unique in that employees (based on a comprehensive opinion questionnaire) determine which organizations make the list. The study measures employee engagement, not just satisfaction or employee programs. The survey has become increasingly competitive since it was first published in 2000. “British Columbians consistently tell us that the BCAA brand stands for trust, and we know that our employees are one of the primary reasons for that,” says Condon. “Our members and customers trust us to deliver exceptional service and value, delivered by highly engaged employees.” The 2010 study collected information from more than 100,000 employees and 1,200 leaders at more than 200 organizations across Canada. For more details on the survey, visit www.hewitt.com/bestemployerscanada.
AIA and I-CAR Forge Ahead I-CAR, The Inter-Industry Conference on Auto Collision Repair, and The Automotive Industries Association of Canada (AIA) have announced that they have executed a Memorandum of Understanding allowing the two organizations to proceed with the development of a Licensing Agreement under which the management of the delivery of I-CAR products and services in Canada will be undertaken by AIAC. The announcement was made by John Edelen, president and CEO of I-CAR, at the January 23 meeting of the Canadian Collision Industry Forum (CCIF) in Toronto. Edelen reviewed for the CCIF attendees the developments and the two-year process under which I-CAR had evaluated how it could best address its future role in meeting the training needs of the auto collision indus6 Bodyshop l February 2010 l www.bodyshopbiz.com
try in Canada. During that time, the Canadian collision repair inter-industry, through a Canadian Advisory Committee, had presented its perspectives and recommendations to the I-CAR International Board of Directors. As a result of that process, the board directed Edelen to pursue a relationship with AIA, the leading participant in the proposal process. “I am grateful for the support of the Canadian auto collision industry, and for the significant and substantial efforts of Roland Taube and Tony Canade in leading the work of the Canadian Advisory Committee. The I-CAR International Board of Directors had the benefit of a well-designed and thoughtful process, and a clear direction from the industry, to support its actions,” said Edelen. Marc Brazeau, president of the AIA, also
addressed the CCIF attendees, ensuring them an effective, efficient, and seamless transition of I-CAR’s activities, as well as a more complete training experience for the industry in both of Canada’s official languages. Brazeau also indicated that AIA had established an industry Transition Advisory Committee to ensure continued industry involvement in the process. “This is a very exciting development for the Canadian auto collision industry,” offered Edelen. “It represents the industry’s best opportunity to ensure that its training needs are being met through access to I-CAR curriculum – and one that will be managed and led by a clear leader in the automotive industry in Canada, AIAC.” The current target date for the transition is May 1, 2010.
SCRC Adds HARA to Affiliate Roster The Society of Collision Repair Specialists (SCRS) has announced that the Hamilton District Autobody Repair Association (HARA) has become its newest affiliate association. Headquartered in Hamilton, Ontario, HARA becomes the second active Canadian affiliate of SCRS, joining the Automotive Retailers Association (ARA) in British Columbia. While focused on collision repair-related issues in the Hamilton area, HARA has experienced rapid growth in membership and service in other parts of the province, where it uses the name Collision Industry Information Assistance (CIIA). “The grass-roots issues that SCRS addresses are key to the future success of the industry,” says HARA executive director John Norris. “The opportunity to dialogue on a regular basis with other SCRS association affiliates from other jurisdictions is invaluable in providing solid hands-on information regarding programs on which others have worked. Their ideas and experience can help us ensure we follow their success and learn from their cautions.” The Hamilton District Autobody Repair Association is a non-profit industry trade association dedicated to ensuring the industry and member collision repair facilities operate profitably in a professional, environmentally friendly fashion for the benefit of consumers.
Maaco Honours Regina Shop as Top Performing Franchisee Charlene and Marty Klyne of Maaco Collision Repair & Auto Painting in Regina, Sask., received the Maaco Cup award at a convention held in Punta Cana, Dominican Republic. The award recognizes the chain’s top-performing franchisee. “I’m honoured to be singled out for accolades from among all 475 Maaco franchises,” says Charlene Klyne. “I have a great team supporting me in the centre and at the corporate office.” Associated with Maaco since 1987, Marty runs a separate business and handles the centre’s marketing and advertising. A superb team, the Klynes rely on the Maaco system in the course of their daily operations. “This centre is to be commended for creating a superb brand experience that keeps customers coming back,” says Maaco president David Lapps. Charlene has run day-today operations since the Klynes opened their new store in 1999.
Carrying The Flame Two CARSTAR owners will became part of history by carrying the Olympic torch in the Vancouver 2010 Torch Relay. Paul Appleman of CARSTAR Port Hope was chosen to be one of 12,000 torch bearers creating a path of northern lights along the 45,000-kilometre journey to the Olympic Flame. Appleman was chosen because of his pledge to make his local community, city, and country better by helping find a cure for cancer through the Terry Fox Run. Appleman has been organizing these runs in his local community for the past 28 years. To date, he has helped to raise nearly $1 million. Also becoming part of Olympic history was Dennis Carlini of CARSTAR Windsor. The Vancouver 2010 Olympic and Paralympic Winter Games are truly Canada’s Games, as the 2010 Torch Relay becomes the longest in history to be contained within the host country.
CANADA HAS CHOSEN ITS BODY SHOP Why Should I Convert My Body Shop To A Maaco? Maaco is ranked #1 in its category by Entreperneur Magazine in its Franchise 500 List Maaco has a canada-wide 97.4% customer satisfaction rating [measured by CSI Complete]
Maaco receives 75% of its business through retail out-of-pocket customer pay Macco service more than 500,000 customers / year in North America [572 more costomers / year per shop on average than a traditional body shop]
Maaco Canada average store volume = $1 Million PLUS Half of Maaco Canada’s shops achieve average sales of over $1.4 million annually with a 12% average net profit
Christmas Spirit In December, Renascent Fix-Auto partnered with the Chilliwack Times to give local resident Lisa Hackl a professionally refurbished car for Christmas. Store manager Joe Kovarik presented the keys to the grateful winner, who was the finalist among more than 50 nominees. “She sincerely deserves something good to come her way,” says Hackl’s mother, Bev Durant, in an article in the Times. “I heard about the giveaway, and I thought it would be such a blessing if something like that could happen for her.”
Canada Has Chosen Maaco,
Now It’s Your Turn. CALL
today to learn how you can convert your body shop into a high-volume Maaco franchise.
www.bodyshopbiz.com l February 2010 l Bodyshop 7
news
Appointments I-CAR Announces Industry Veteran William “Bill” Stage as New Director of Marketing & Distribution I-CAR has announced that William “Bill” Stage has been appointed to fill the newly created position of director of marketing and distribution. Stage comes to I-CAR with over 20 years’ experience in the collision inter-industry and is no stranger to the I-CAR organization, having previously served as director of field operations, marketing and product development for I-CAR from 1990 to 1994. Since 2006, he has served on the I-CAR International Board of Directors, most recently serving as secretary. He also served as chairman of the I-CAR International Advisory Committee, a committee comprised of volunteers who provide an advisory role to the organization. Stage will report to John Edelen, president and CEO of I-CAR. “I am very excited to join I-CAR at this time to assist in implementing the new programs developed under John Edelen’s leadership,” says Stage. “The I-CAR staff and volunteers are a dedicated group of individuals committed to improving the industry and I am proud to be a part of the team.”
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8 Bodyshop l February 2010 l www.bodyshopbiz.com
They Don’t Build ’em Like They Used To Results were “night and day,” in a 65-kph offset crash demonstration between a 1959 Chevrolet Bel Air and a 2009 Chevrolet Malibu. The test crash, conducted by the Insurance Institute for Highway Safety (IIHS) in September and recently released on video, demonstrates the strides made in keeping drivers and passengers safe in the 50 years since U.S. insurers organized the IIHS. In a real-world collision similar to this test, occupants of the new model would fare much better than in the vintage Chevy. “It was night and day, the difference in occupant protection,” says Institute president Adrian Lund. “What this test shows is that automakers don’t build cars like they used to. They build them better.” The crash test was conducted at an event to celebrate the contributions of auto insurers to highway safety progress over 50 years. Beginning with the Institute’s 1959 founding, insurers have maintained the resolve, articulated in the 1950s, to “conduct, sponsor, and encourage programs designed to aid in the conservation and preservation of life and property from the hazards of highway accidents.” The video and still images can be viewed at the IIHS website. A decade after the Institute was founded, insurers directed this organization to begin collecting data on crashes and the cost of repairing vehicles damaged in crashes. To lead this work and the Institute’s expanded research program, insurers named a new president, William Haddon Jr., who already was a pioneer in the field of highway safety. In welcoming Dr. Haddon, Thomas Morrill of State Farm said, “The ability to bring unbiased scientific data to the table is extremely valuable.” This scientific approach, ushered in by Dr. Haddon, is a hallmark of Institute work. It’s why the Institute launched the Highway Loss Data Institute in 1972—to collect and analyze insurance loss results and to provide consumers with model-by-model comparisons.
Cell Phone Ban While Driving Now in Effect for Ontario Drivers Starting February 1, 2010, any adult driver caught talking on a hand-held phone in Ontario will be assessed fines. Bill 118, also known as Ontario’s Countering Distracted Driving law, began on October 26, giving drivers a three-month grace period before drivers caught talking would be given fines. Ontario drivers can expect to receive a minimum $155 fine (and a maximum $500) if caught, and a loss of demerit points in addition to a fine if caught texting, typing, emailing, watching a DVD, or playing a portable device while driving. Talking using hands-free devices is still permitted. Similarly, there are exceptions for drivers making 911 emergency calls. Drivers of emergency vehicles and certain commercial vehicles will also be allowed to use certain hand-held devices. Technicians that operate di-
Cross Canada Acquires Distribution Company, Builds Bumper Offering Cross Canada Auto Body Supply has acquired Collision Parts Specialists (CPS), a paint and body supply distributor with bumper recycling facilities. According to the terms of the agreement, CPS will become one of the distribution arms for Cross Canada. “As one of our largest customers, CPS captured our attention as it quickly developed into a major national distributor,” says Peter Sepetanc, president of Cross Canada Auto Body Supply. “Through aggressive growth it gained significant market share in the distribution channel of automotive aftermarket parts. Our management team agreed this was a prudent move to secure both our competitive advantage and our market share. In addition, the four CPS bumper recycling facilities greatly expand Cross Canada’s product offering.” Paul Reichert, vice-president of CPS, adds, “Since our inception we recognized the value of Cross Canada’s parts, personnel and leadership under Mr. Sepetanc. Their commitment to quality and service played an integral role in the success of our business. Now, as part of the Cross Canada team, we can further develop our business model and better serve our customers in the collision repair industry.”
agnostic scan tools while driving in Ontario are also exempt in certain instances as well. A similar provincial bill went into effect in British Columbia in January. B.C. drivers can expect similar reprimands in the form of a minimum $167 fine, as well as a loss of demerit points if caught texting while driving. For more information, visit the Ontario Ministry of Transportation’s website at www.mto.gov.on.ca.
“The jobber network has, and will always be, the cornerstone of our success,” continues Sepetanc. “This acquisition will not jeopardize our long-standing jobber relations; it will enhance them, by the addition of the added bumper rebuilding capacity.” Headquartered in Windsor, Ont., Cross Canada Auto Body Supply has been serving the Canadian collision industry for 48 years. Cross Canada has five distribution warehouses: Windsor, Toronto, Edmonton, Calgary, and Vancouver. Collision Parts Specialists, based in Winnipeg, Man., is a supplier to the collision repair market with locations in Toronto, Mississauga, Winnipeg, Saskatoon, Regina, Calgary, Edmonton, and Kamloops.
Mitchell Releases Latest Industry Trends Report Mitchell International, Inc., has released the first quarter 2010 edition of its U.S. Industry Trends Report (ITR). This edition’s Quarterly Feature, “Do You Really Know Where Total Losses Are Trending?,” by Mitchell’s vice-president of industry relations, Greg Horn, details Mitchell’s indepth examination surrounding the trend of declining total loss claims—a phenomenon that has occurred despite a severe U.S. economic slowdown that has seen approximately six million fewer cars and trucks sold in 2009
than in previous years. Horn’s examination of Mitchell’s multiyear claims data breaks down the results and explains that the pool of older vehicles carrying first-party coverage is shrinking. Older vehicles in North America today are increasingly under-insured or not insured at all, as cashstrapped drivers reduce or drop their coverage. Therefore, no total loss claim is made by the owners of these vehicles in the event of a collision. The ITR’s second feature, “Technology to the Rescue: Use Innovation to Help Speed Report of Losses,” also by Greg Horn, discusses how insurers can use technology to improve the time from date of loss to date of report. Horn describes why the most significant obstacle to speedy claims resolution is often the claimant’s delayed response in reporting an accident to the insurer, likely due to lack of experience with the claims process. He points out that if policyholders know that technology such as cell phone applications and online tools that give them visibility into the claims process and keep them informed and up to date are available, they may have a less daunting view of the process and be inclined to take action more quickly. The Industry Trends Report can be downloaded in PDF format by visiting www.mitchell.com. www.bodyshopbiz.com l February 2010 l Bodyshop 9
news
BASF Refinish Launches Expanded Lean Education Program
BASF Automotive Refinish recently announced it has expanded its Lean educational program for collision repair facilities. Originally launched as part of BASF’s VisionPlus University (VPU) in 2008, BASF’s Lean program offered customers a half-day introduction to Lean, giving collision centres a high-level overview of Lean concepts. BASF’s Lean education component of VPU now includes three additional programs: • Launching Lean (VPU-031) is a two-day workshop that demonstrates fundamental concepts and introduces the tools needed to successfully implement Lean in a collision repair centre. This is the first step in implementing a continuous improvement business model.
• Lean Implementation (VPU-032) is a three-day workshop centred around a bodyshop simulation that guides customers in identifying non-value added activities, exploring methods for reducing waste and developing ways to measure success. • Leading a Lean Culture (VPU-033) is a seminar that is a solid step forward for owners and managers considering a Lean business model. Customers will assess their individual businesses and establish a plan for Lean implementation. BASF’s program was developed in-house by its team of Lean Six Sigma Master Black Belts and collision industry experts. The entire curriculum was designed with the intent to teach collision centres the concepts so that they can create their own Lean model. Classes are taught at a BASF facility by BASF instructors who have years of collision industry experience and who have used Lean principles in their everyday work. Occasionally classes are taught at customer locations if both attendee and facility criteria are met. For more information about the programs offered, go to www.basfrefinish.com.
Automotive Recyclers Express Concern Over New Refrigerant The Automotive Recyclers Association has expressed concern to the U.S Environmental Protection Agency over the recyclability, safety, and feasibility of the proposed HFO-1234yf refrigerant regarding the environment, automotive recycling employees, and the general public. The comments were offered in the context of the U.S. Environmental Protection Agency’s (EPA) proposed rule to approve the new substitute refrigerant, HFO-1234yf, under the Significant New Alternatives Policy (SNAP) Program. Alternative refrigerants accepted by the program have generally been accepted for use in Canada. The recyclers association says that, while it appreciates the EPA’s obligations to identify the best available alternatives to ozone-harming fluids, it has concerns. Those concerns target the storage, disposal, occupational hazard, internal cost associated with specialized equipment, impact on air quality, and storm water run-off requirements. According to the association, the EPA has expressed a willingness to address these issues and gain more of an understanding about the automotive recycling industry as it moves closer to administering a final rule. The ARA represents over 4,500 auto recycling facilities in the United States and fourteen other countries around the world, including Canada.
10 Bodyshop l February 2010 l www.bodyshopbiz.com
ccif
Power of Positive Thinking: CCIF Toronto seeks the high ground
I
t was an undoubtedly upbeat group that gathered at the Marriott Hotel near Toronto’s Pearson Airport on January 23rd to ponder, mull, and debate the present and future direction of the Canadian collision repair industry at CCIF Toronto’s day-long seminar, “The Power Of Positive Thinking.” With hundreds in attendance, representing suppliers, shops, insurance partners, and media, the event was an opportunity to showcase the spirit of cooperation that has been the hallmark and goal of the CCIF for over a decade. Getting an early start to the morning was a joint presentation by John Edelen, president and CEO of I-CAR, and Marc Brazeau, president of the Automotive Industries Association, who were both able to shed some encouraging light on the future of I-CAR-based training in the Canadian marketplace. (For more details, please see the news story on pg. 6.) The positive news continued during a presentation by NATA executive vice-president Dale Finch, Canadian Vehicle Manufacturers Association president Mark Nantais, and Association of International Automobile Manufacturers of Canada president David Adams. The three execs joined forces to talk about the hard-fought CASIS (Canadian Automotive Service Information Standard) agreement, which in essence, ensures that “Canadian technicians will soon have access to everything that their U.S. counterparts have” — a welcome message for the diligent shop owners and technicians in attendance. Once association business was squared away, including an informative status update by CCIF’s Skills Program director, Leanne Blackborow, the attendees’ energy was boosted by well-known Canadian entrepreneur and business consultant Donald Cooper, who provided thought-provoking insights and more than a few laughs during his keynote address on the trials and tribulations of staff retention. During his address, Cooper sought to bust various stereotypes and excuses that permeate the industry, none more pointedly than those surrounding staff training. It’s an old saw within the automotive repair business that it’s pointless to spend resources training staff,
since they will probably only leave and join your competition. However, Cooper turned the logic on its head, with the telling question: “Ask yourself, what happens if I train people and they leave? Or, what happens if I don’t train them and they stay?” Perhaps the most contentious and debategenerating presentation of the afternoon was provided by Akzo Noble speakers Doug Kirk and Keith Malik, who were invited to travel from their homes in the U.K. to offer attendees advice on what can happen to a collision industry where there is “mistrust, misuse, and misaligned values.” Armed with war stories from the British industry (which Kirk characterized as “the most repressive market in the
world”), the two encouraged those in the Canadian industry to avoid the troubles that have taken hold across the pond. “In a symbiotic industry, we need each other,” said Kirk. “Realizing that is the first step you can take here, in avoiding the pitfalls we found in the U.K.” The event was capped off with well-received presentations from Automotive Recyclers of Canada’s Steve Fletcher, and Neil Martin from the Ontario Ministry of Labour. All in all, CCIF’s daylong event provided all of those in attendance with critical, timely information, specific strategies to take back to their respective businesses, and a valuable overview of the industry. Not to mention a bit of entertainment value as well. B
Clockwise from top left: CCIF chairman Tony Canade; I-CAR president and CEO John Edelen; CCIF administrator Mike Bryan; AIA president Marc Brazeau www.bodyshopbiz.com l February 2010 l Bodyshop 11
BU The 2010 Industry Outlook Survey By J.D. Ney
Paul West, manager Nurse Collision Centre, Whitby Ontario
12 Bodyshop l February 2010 l www.bodyshopbiz.com
USINESS cover story
UNUSUAL P
aul West, manager at Nurse Collision Centre in Whitby, Ontario, knows that the winter months are supposed to be good for the collision repair business. He takes the time to explain the difference between most dryroad collisions, with their higher speeds and often total-loss outcomes, versus the glancing blows Canadian auto body specialists have come to expect from snow-covered roads. It’s the kind of damage that those in the collision industry like to see—because it is damage that can be fixed, inside of an insurer’s cost matrices. But, as West sits at his desk on this cold January night, the roads are bone-dry, and have been almost all winter. “Business so far this year is worsening,” he says. “This time last year, we were running at full capacity, but weather determines so much of the business in the winter, and we’ve had, what, an inch of snow all season?” Despite the slow start to the year, West says the shop is exploring all of its options for attracting new business, that may not necessarily come via one of their Direct Repair Providers. “You wrack your brain and bend over backwards to get your DRP agreements—and we obviously appreciate all of that business—but today repairs are down, totals are up, so we’ve got to look at other ways to increase volume,” he says. Fortunately, one tool at their disposal comes right from the showroom floor. West’s shop is part of a larger General Motors dealership in the city, and he says the company’s policy now is to introduce new dealership customers to the collision side of the business as part of a general introduction to the firm. “I’m not a hardsell kind of guy,” acknowledges West. “We just try and be as pleasant, helpful, and courteous with the customer as possible. We find once people have dealt with us, they’ll choose to come back.” www.bodyshopbiz.com l February 2010 l Bodyshop 13
cover story
West’s story of poor weather and low-volume challenges is just one issue we heard about over the course of our 2010 Outlook Survey research. It seems that perhaps more than any other time in recent memory, there is little consensus on how 2010 will play out in terms of profitability and overall success, and even less consensus as to why that might be, or how those problems might be solved. So, while the strategies West’s group has employed might work for some of you, the research numbers would indicate that many respondents feel the issues lie elsewhere completely. Taking a look at the first two questions on the survey, the complexity of the issues and the divides across the country only begin to reveal themselves. Looking at the results of question one (Figure1), we see that those who responded can’t even come to any kind of agreement on whether or not 2010 will be much better than 2009, a year when a dismal economy dominated the daily news headlines. In fact, the final result is almost split right down the middle, with some 52.5% believing that 2010 will be better or much better than the year past, while the remaining 47.5% think that 2010 will be the same or worse. The next question, designed to dig a little deeper into the true confidence of those running collision 14 Bodyshop l February 2010 l www.bodyshopbiz.com
repair facilities in 2010, produced an even more opaque view. On the issue of capital investment plans (a sure sign of businesses regaining confidence in the year ahead), the results were just about as statistically split as they could possibly have been (Figure 2) among those who are looking to make some serious capital investment in the coming year, those who are looking to do so in the second half of 2010, and those who will simply be riding out a potentially tumultuous year with what they’ve got. With each option garnering approximately 25% of total responses, it’s clear that we are indeed looking at a very fractured marketplace in 2010—perhaps not so much in terms of overall industry cohesion (as recent CCIF meetings show), but through an industry full of players with some very different views on how to survive during this period of supposed economic recovery. The remaining questions on the survey show just that. When asked to elaborate on a few critical points about 2009 and moving forward in 2010, with more probing questions like “What was the biggest challenge your shop faced in a difficult 2009?”; “What do you see as being the number-one challenge facing the industry going forward in 2010?”; and “What strategies do you have in terms of facing those chal-
in my estimation
lenges? What suggestions could you offer others in the industry?,” the salad of replies was as varied as you might expect after seeing the final tally from the first two queries. In terms of top challenges for 2009 and moving into 2010, the replies were typically wide-ranging: “Low door rate, driven by insurance company’s stranglehold;” “making a profit—we were busy but the bottom line was not good enough,” “cost to change over to waterborne paints and the upgrades,” “locating qualified manpower,” and “we had a record year.” As one can see, there is little agreement there. In fact, even on the perennially cited grievance, “rates from insurance companies,” there is hardly a national consensus. In fact, while compiling the final results, we spoke with operators in different parts of the country personally, and heard wildly different stories. Several shops in Manitoba who asked not to be identified by name for fear of repercussions, suggested they are nearly on the verge of a “farmers-drivingtheir-tractors-to-the-Parliament buildings” type of revolt against that province’s public insurance practices, while some like, Paul West in Whitby, said that— on the insurance front anyway—there is little concern. “I’ve worked with the same insurance partners for years, and they support what we’re trying to do here,” he says. “No one wants to argue anymore.” Finally, in terms of strategies moving forward the results, predictably by now, were as varied as the overall survey itself. Suggestions from those who completed the survey included, but were not limited to: “Communication. Create maximum value with minimum waste. Make the hard decisions and keep moving forward. Do not continue to follow ritual without thinking about the actual purpose.” “Spend more time educating customers on repair practices, claims handling, and follow-ups. Being in the community for so many years has helped us develop a solid reputation in uncertain times.” “Insurance company seminars. Educate them on the new repair process on clinching/bonding on high-end vehicles.” “We must get our rates to a level playing field with other trades if we want new blood. Why would I want my son to work for depressed wages?” And one that we at the magazine tried not to take too personally: “This industry has enough talking heads and salesman; we need more qualified staff. It seems there is an abundance of people to tell us how to do things but nobody with any ability to do it.” In terms of that “ability to do it,” another shop manager from Ontario states flatly that gross sales are going to be his key aim in 2010. “Even if you’re as fiscally responsible and as lean as you can be, it can still be a challenge, especially as a DRP shop, to in-
crease your margins,” he says. “So you have to do it with gross sales.” According to him, the strategy for accomplishing this is a never-say-quit approach to insurance companies. “The number-one key is always going after new insurance accounts,” he states. What’s more, he says, the effort needn’t be concentrated only at the insurers’ respective national levels, which can be intimidating or logistically difficult for some shops. “We focus on our own local marketing with the brokers here. We focus on our insurance KPI numbers and we make sure to advertise and tell them about our successful cycle time, average severity, and alternative parts numbers. We’re also sure to advertise our 99% CSI number.” All in all, the final result of this annual exercise is telling, albeit difficult to focus. It’s clear that many collision repair shops are facing some serious threats in 2010 from labour issues (perceived or real), waterborne conversion, and insurance company difficulties, not to mention a sputtering economy. There are those in the business who are thriving though, and it is their examples and ideas that we at the magazine will try and bring to light in each issue, for the benefit of all. On that note, if you have any suggestions, technical or managerial, we’d like to hear them at any point, and not just at annual outlook time. After all, we don’t want to be just talking heads. B
“Spend more time educating customers on repair practices, claims handling, and follow-ups. Being in the community for so many years has helped us develop a solid reputation in uncertain times.”
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business management
Gaining Ground: How Utilizing Business Management Software Can Increase Profits By David Halpert
A
s collision repair software becomes more integrated—taking advantage of expanded hardware capabilities, greater storage capacities, and, of course, the Internet—questions arise as to how repair technicians are utilizing these business management systems once they leave the developers’ hands. There’s no arguing that today’s collision repair software (which for business purposes can include everything from financial management to estimating, production management, task management, customer retention, communications, etc.) can greatly improve the efficiency and productivity of a bodyshop, leading to increased profits. However, while most realize the benefits of a new software system, few utilize them to their fullest potential. The “power users” of these software systems represent only a small percentage in the collision repair industry. The process starts with implementation. For many developers, this is the single biggest challenge in releasing (or updating) a new software product to market.
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“When you add additional features or functions to a product or make a change that requires them to do something different, the biggest challenge for the user is to understand the benefit,” says Frank Terlep, president of Summit Software Solutions. “It’s part of a communications strategy. The user is going to have to change how he is using the software. When they understand the benefits and it matches what their expectations are, it’s relatively easy to get them to use it.” One of the ways developers have been accommodating collision repairers is by offering packages tailored to the size of their bodyshop’s operations. Summit Solutions’ CollisionRepairNet software suite allows shops of all sizes to get the features and functions they need to achieve the objectives they want from a shop management system. Not to be outdone, Mitchell’s RepairCenter, launched at last year’s NACE Expo in Las Vegas, allows collision repairers to choose from six customizable RepairCenter packages and 30 modules. And while only a select number of
modules have been released to the Canadian market thus far (including the ClaimTools Photo Management module and the TechAdvisor Collision & Mechanical Parts & Labour Estimating Data module), more are expected to be available in the first quarter of 2010. “The challenge with any change of systems is within the migration from differing systems,” says Mike Jerry, Mitchell Canada vicepresident and general manager. “If [a collision repair facility] has been using software or a particular program for a considerable period of time, there’s a level of comfort. It’s overcoming a new workflow, a new process. These programs can take you to being as lean as you want to be, and the real struggle is not the software but the internal process changes within the shop.” Just as there’s a considerable difference between reading about the benefits of a business management system and seeing actual tangible results to your bodyshop, the same can be said about the potential costs, as Frank Terlep explains.
A New Mobile Frontier “If [a bodyshop] has the capability of going paperless and they have chosen not to over the last three or four years, we have identified that the average cost of paper and paper-based processes to a shop is approximately $50 per repair order—and that cost is not just based on the paper. It’s based on the loss and misfiling of paperwork, the time needed to search and find information, the cost of printing, copying, etc. Another part of the fifty-dollar cost per RO is that the typical repair order jacket travels 2.6 miles during the course of its lifetime. “Another ‘hidden cost’ in many collision repair shops is their flat-rate or commissionbased pay structure and processes. We have a feature in our software called ‘Auto Flagging,’ that automates the flagging and commission payroll process, which can eliminate anywhere from three to five hours a week in payroll processing time.” Bernard Peloquim, a consultant for Carrus Technologies’ CollisionWay software, says that in terms of finances, many collision repair facilities fall victim to what he calls the “shoebox syndrome.” This is where all of the invoices and paperwork needed to conduct accounting procedures are placed in a shoebox and sent to the bodyshop’s respective accountant on a regular basis, leaving the owners and managers with little understanding of the true day-to-day profitability of the business. Peloquim believes that part of the solution for bodyshops lies in real-time, accurate communication between collision repairers and their respective business partners. “What the industry needs is a day-to-day contact with what’s happening in their shop. [Imagine] if, for example, you can pull the report on whether you made money or you lost money on the car that just left your door, instead of having to wait for the report for two to three weeks, or even a month. What is the negative effect and how much is it costing them? I would say somewhere between 0-5% of net profit.” Audatex took a different approach with its Lean Six Sigma for Collision Repair. Instead of offering a robust suite of integrated modules, Audatex strives to improve efficiency and productivity in collision repair facilities through its time-tested Lean methodology, which has led to success with its other platforms and systems. Through its Web-based audio and video tutorials that collision repairers can access anytime online, Audatex gives industry professionals a cost-effective, broad foundation to
The number of mobile devices sold in North America over this past year has skyrocketed, leading to an increased use of smart phone technology—so much so that people in the collision repair industry have started to take notice. Last December, Summit Software Solutions released “Help I Crashed My Car!,” a free smart-phone app that provides motorists with the tools they need if they’re ever in a car accident. The app includes one-click automated emergency communication with up to three family or friends, insurance companies, agents, and the consumer’s preferred bodyshop; its patent-pending GPS location technology also provides bodyshops with a direct First Notice of Loss from the scene of the accident as well as a map and directions that allow bodyshops to locate the consumer and the accident almost immediately. “Help I Crashed My Car!” also includes the ability to take photos, as well as write and send accident reports onsite. Now available in Canada, the app also allows for status updates as the consumer’s vehicle is being repaired. “Our customer is the bodyshop, and it was built to help bodyshops retain their customers and to offer them a new, cool, and powerful customer service,” says Frank Terlep, president of Summit Software Solutions. “We give the bodyshop a license to give out an unlimited number of free apps to their clients.” Mitchell International’s RepairCenter has a module specifically designed for both the Apple iPhone and Blackberry, allowing collision repairers the ability to check the status of their repair jobs with only a few simple clicks. The app, specifically designed for the collision repair industry, also allows technicians to take photos, record voice notes, and assign tasks.
learning how their business operates and how to improve upon it. “The whole idea behind Lean is to gain efficiencies through productivity. It’s really looking at removing redundancies or unnecessary steps in the process,” says John Kotsopoulos, managing director for Audatex Canada. “It’s like getting 30% more output with 30% less input. So how do I get 30% more with an existing process, [then] how do I get
Designed to accommodate busy shop schedules, the Lean Six Sigma training course details targeted methods on how to run a more productive shop that will deliver high-value work, satisfy customers, and drive greater loyalty.
30% more with 30% less on the input side?” For those wishing to get the most out of their business management software, there’s no shortage of available resources from the developers themselves. While most software systems will have comprehensive tutorial modules included in the program, many developers go the extra mile when it comes to technical service and training. Carrus Technologies, for example, offers one-on-one online training, while Mitchell offers alternative “Mitchell University” courses that allow clients to learn the finer points of their software at home on their own time. Summit Software Solutions, as part of its consultant work, will actually revisit a bodyshop as many as four or five times after initial implementation to help its customers better utilize their software. It’s impossible (and somewhat unreasonable) for collision repair industry professionals to learn all the functionalities offered within these software platforms, but don’t dismiss them entirely. Be aware of the resources out there and the potential to improve the operations of your bodyshop. B www.bodyshopbiz.com l February 2010 l Bodyshop 17
Bodyshop Magazine online is Bodyshopbiz.com The Top 10 stories for the month of January, 2010 are: 1. Insurer Report Card 2009 2. U.S. News: AkzoNobel Strikes Deal with Third Largest Chevrolet Dealership in U.S. 3. PPG Canada's Automotive Refinish Division Announces Organizational Changes 4. New Cell Phone Law Goes into Effect January 1st for B.C. 5. PVCC Training Puts Students in Rural Areas on a 'Collision Course' to an Early Career 6. GM Approves New Low VOC Clearcoat from Sherwin-Williams Automotive Finishes 7. Standox Launches "Color Box" for Add-on Parts 8. Chrysler Approves New PPG Low-VOC Etch Primers for Warranty Repairs 9. CCIF Kicks off 2010 Season with Solid Toronto Program 10. Popular Basic Estimating Course Returns
Bodyshopbiz.com Just another way that Bodyshop Magazine is the leading information source for the Canadian collision repair industry.
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equipment feature
Let’s
Make A Deal Distributors help ease the pain of the transition to waterborne paint By Peter Caulfield
I
n mid-summer 2009, Environment Canada announced new regulations that require the use of waterborne paints that are low-VOC (volatile organic compounds). Canadian bodyshops have no choice in the matter and will have to comply with the shift, which has been a long time in the works.
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in my estimation
Beginning in June 2010—just a few short months from now—paint manufacturers will be restricted to importing and manufacturing only low-VOC products. They can, however, continue to sell solvent-based paint until December 2010. Most bodyshops across the country have been affected by the ongoing recession and suffered a loss of business to some degree in 2009. Many of them, especially the independents, are therefore not in an ideal financial position to deal with the cost of the switch to waterborne paint. However, some spray paint booth manufacturers and dealers have launched programs that ease the financial pain of installing new equipment. According to a small and unscientific survey undertaken for this article, however, deals on equipment are not general throughout the industry. Any bodyshop owner who wants to save a buck or two on new spray booth equipment will have to shop very carefully and be prepared to make more than a few inquiring phone calls. Nevertheless, there are deals on equipment to be had. For example, Everett Greenwood, a technical representative with Rondex Limited in Winnipeg, says his company offers bodyshops incentives if they sign a contract with the company. “A basic deal for a shop if they sign a contract may include a new spray gun and a set of venturis,” Greenwood says. “If it’s a high-volume shop that needs to install a fan or blower system, we will generate a dollar amount for an incentive, based on previous purchases, and use that to offset the cost of any upgrades.” Greenwood says Rondex will work with any customer who is already under contract to satisfy any equipment needs. “Whether that involves 20 Bodyshop l February 2010 l www.bodyshopbiz.com
selling items near cost or having them sign a contract extension, we try our hardest to make sure no one is left out in the cold,” he says. Greenwood says some of the time- and money-saving air movement technologies that are coming onto the North American market now have been in use in other places for years. “Europeans have been spraying waterborne base coats for 20 years,” he says. “Most of their technology came to us long after it was used over there. I recently attended the NACE convention [NACE International—The National Association of Corrosion Engineers] in Las Vegas and was intrigued by one item. It was basically a heat lamp with a set of venturis attached to it. This item epitomizes the ‘new’ technology for waterborne. They are either old ideas or a combination of old ideas that are given a new purpose.” Dean Marino, president of Dormer Finishing Systems Ltd., a Winnipeg-based spray booth equipment distributor, says his company offered a “recession rebate” of five percent in 2009 on all spray booth equipment from Global Finishing Systems. “It was a very successful promotion,” Marino says. “In some cases it made the difference between purchasing a new waterborne booth or not.” As of early January 2010, Marino says he doesn’t know if the same program will be offered this year. Dormer also works with paint distributors on rebates to customers. Thanks to new product developments—some by homegrown Canadian companies—bodyshops can meet the summer deadline for waterborne without breaking the bank. Charles Makad, who is on the spray booth sales team at Barrie, Ont.-based Paintline Products Inc. and Omega Compressors, says many spray booths and related equipment
equipment feature
VOC/AB/BOD
show improvements of one kind or another in air movement, air paint. However, there is one limitation that downdraft airflow just heating, and safety. Partly as a result of these innovations, spray cannot avoid. This limitation is the creation of ‘laminar air’ and ‘boundary air.’” booths and air compressors sold well in 2009. Barrick says that, when looked at under a microscope, even the Flatline Spraybooth Specialists Inc. in Markham, Ont., launched most perfect paint jobs are not entirely smooth. They have tiny the Aquacure spray booth system in 2009, featuring an air velocity bumps, dips, and ridges that are imperceptible to the naked eye. of more than 400 feet per minute. “Aquacure reduces bake time These tiny imperfections slow down the air enough to create the and energy costs,” says Matt Gibson, Flatline sales manager. slow-moving “boundary air.” During the paint The company sells Aquacure directly to cusdrying process, this boundary air becomes satutomers in Ontario and through distributors to Thanks to new product rated with water molecules from the paint, prebodyshops in the States and the rest of Canada. developments — some venting the airflow from drawing water moleAt a cost of $10,500, Gibson says the product cules out of the wet paint and thus limiting the comes in at between three and six thousand by homegrown speed of evaporation. dollars less than competitive products. Canadian companies In order to achieve the fastest drying times Flatline is also primed to launch a hosepossible, the boundary air must be disrupted hanger for bodyshops. “It’s a wall-mounted track — bodyshops can meet and dispersed. By creating turbulent airflow on system that keeps air hoses off the floor,” Gibson the summer deadline the surface of the vehicle, which is what Adsays. “The hose-hanger helps decrease dirt and vanceCure does, it breaks up the boundary air dust in a shop and increases safety.” Gibson says for waterborne without and rapidly speeds up the drying process. Flatline will launch the hose-hanger in 2010. breaking the bank. AdvanceCure is a feature of Global Finishing Global Finishing Solutions Canada Inc. in Solutions’ ECO Ultra Plus 1 Downdraft Paint Barrie, Ont., has developed the AdvanceCure Booth, which was designed to save energy and Accelerated Airflow System for waterborne keep bodyshop operating costs down. Other paints, which combines rapid air movement and heat for a convection-oven-like environment. It is available in six features include the Controlled Air-flow Ceiling for optimized downdraft airflow; SmartCure control panel with programmable different tower models and can be retrofitted. According to Global marketing manager Jonathan Barrick, cure cycles for one-touch operation; direct-fired heat system with the AdvanceCure system breaks up the “boundary air,” a low- variable-frequency drives; and economy mode to decrease energy pressure layer of slow-moving air immediately below the “laminar use and maximize fuel conservation. Any way you slice it, the conversion to waterborne is not going air,” which is created as air passes in one direction over a solid object in a paint booth, and rapidly speeds up the drying process. to be an inexpensive proposition, nor is it likely to get any cheap“Downdraft airflow is generally accepted as the best type of er. But by taking advantage of the various distributor programs at 4/3/09 2:37 PM Page 1 airflow for a paint booth, and generally speaking this is correct,” your disposal, combined with the improved operational efficienBarrick says. “It does an excellent job of controlling over-spray and cies of the latest equipment, you can, at the very least, lessen the B contamination and provides a safe, clean environment in which to burden.
VOCCompliance.com Your Source for the Best Information on the Low-VOC/Waterborne Refinish World VOCCompliance.com is an initiative of Sponsored by these fine companies:
www.bodyshopbiz.com l February 2010 l Bodyshop 21
from the publisher
EFFICIENCY NOW W
hile the cult of efficiency has made its way into the collision repair business, the terms associated with it remain just buzzwords. According to the technical pros at I-CAR, going from buzz to your business is as simple as reevaluating what you mean when you say cycle time, and adopting some standard operating procedures. According to I-CAR, in the efficient repair facility, every vehicle is having something done to it during the entire time it is on the repair floor. Several vehicles are being delivered every day of the week, on a schedule that was known before any of the repairs ever began. Collision repair is an orderly, evenly paced, standard process that does not alter when a key technician is on vacation. The repair cycle time for all vehicles is an average of four to five calendar days. There may be a separate lane for small repairs that are in and out of the facility in one or two days. There is more open space in the repair facility, every repair bay and storage area looks clean, everything looks organized, tools are visible and in proper place. Everyone working in the facility is happy to be there
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and enjoys what they are doing, a result of being able to get things done in a more efficient way. At first, what appears to be a collection of techniques and tips aimed only at managers and supervisors is much more than that. In fact, it is not a management system at all, but a way of thinking designed for everyone in the workplace. Everyone must be on board and be willing to change, or the mission will not be successful. Suggestions for improving processes must be welcome from anyone, and although management may have started the wheels turning, the implementation of ideas and ensuring that the nuggets of success will follow requires input and involvement from all levels. Cycle time—the time from which the key is handed over to a repair facility until the time it is handed back to the customer—is affected by everyone at the repair facility. It is not only the technicians who do the actual repairs, but everyone from the receptionist and other front office staff to the technician or supervisor that delivers the vehicle after detailing. In a sense, everyone is a customer,
i-car tech tip since each department is an internal customer of the next department in the process. “SOPs,” or standardized operating procedures, is another term that has made its way into repair facilities. SOPs are not a set of rules that the manager writes down then tells the staff, “This is how we’ll do things from now on.” Doing a job “the way the boss wants it” may work in some cases, but only goes so far. Without understanding the “whys,” and without having a voice in creating procedures,
there is no ownership and little incentive to sustain (one of the five Ss). SOPs must be introduced, discussed, and agreed upon by the people who will do the work. They must remain flexible and open to review or change when repairs in the real world uncover necessary tweaks in the list. When SOPs are developed correctly, they ensure an outcome that can be repeated. An SOP in the metal shop area, for example, may specify always finishing body filler
work to a specific grit, stepping up no more than 100 grit at a time, and sanding out to a specific grit. In the next stage of the process, the technician in the refinishing prep area then knows that masking for primer can begin as soon as the vehicle arrives. Because the SOP was followed, there is no need to slow down the repair by spending time assessing the area for imperfections such as pinholes. The technician knows that this was already handled in the previous stage, regardless of who did it. B
in my estimation
CAUSE AND EFFECT One of the most common and frustrating causes of inefficiency in the repair cycle is the incidence of faulty equipment. As many painters know, a clogged or corroded spray gun can throw an unexpected wrench into any job. Thanks to the people at SATA, an international spray gun manufacturer imported here by Eurotech Canada, here is a quick reference troubleshooting chart to help you quickly diagnose and remedy some common spray gun cleaning problems. FAULT
CAUSE
SOLUTION
Fluttering or sputtering spray fan or air bubbles in cup
Fluid tip has not been sufficiently tightened
Tighten fluid tip with universal wrench
Air distribution insert is either damaged or dirty
Exchange air distribution insert; it cannot be cleaned, as disassembly leads to damages
Spray pattern too small, crooked, or deformed on one side
Drillings of air cap are clogged with paint or cleaning fluid
Clean air cap with cleaning fluid and a suitable cleaning brush. Blow dry afterwards
Fluid tip (fluid tip aperture) damaged
Ensure that the fluid tip has not been damaged. If necessary exchange complete nozzle set
No function of round/flat fan control — adjustment knob can still be turned
Air distribution insert has not been properly installed (fixation pin is not located in drilling) or damaged
Exchange air distribution insert ensuring installation is in correct position (fixation pin located in drilling)
No function of round/flat fan control — adjustment knob cannot be turned
Control knob has been turned counter-clockwise into the limitation, probably causing the spindle to have loosened inside the spray gun thread.
Completely remove control knob with universal wrench in clockwise direction; re-install control knob in spray gun body, seal thread with “loctite,” and tighten with universal wrench, or exchange completely
Permanent airflow
Clogged air piston seat or worn-out air piston seal
Clean air piston seat and/or exchange air piston and air piston packing
Corrosion at air cap thread, material passage (cup connection), or on spray gun body
Cleaning fluid (water-based) has not been thoroughly rinsed off after cleaning and air cap and the zone around the distribution insert of the spray gun have not been thoroughly dried
Unscrew air cap after cleaning and dry blow spray gun / air cap from inside and out
Use of inappropriate cleaning fluids, either not pH-neutral or reclaimed solvent which is chemically too aggressive Black digital display
Use pH-neutral cleaning fluid (pH 6.0 -8.0) and/or rinse thoroughly with neutral fluid; dry blow spray gun / air cap from inside and outside. Please observe operating instructions for cleaning fluid
Spray gun has been soaked in cleaning fluid
Do not soak spray guns in cleaning fluid
Spray gun has been left in spray gun washer for an extended period of time, such as overnight
Remove spray gun from cleaning fluid immediately after cleaning process has been completed and dry blow thoroughly
Cleaning fluid has been blown into spray gun with spray gun head pointing upwards and air cap removed at the same time
Manual cleaning: Ensure that nozzle head points upwards when cleaning the spray gun Spray gun washer: Spray gun must be blown through with air — in this case spray gun suspension hook must be positioned at the lowest point
www.bodyshopbiz.com l February 2010 l Bodyshop 23
photo file
On the Way to the Forum
It was all smiles the evening before CCIF'sToronto meeting, at a reception sponsored by Collision Solutions Network.
NEXT CCIF MEETING: May 15, Vancouver, B.C. Renaissance Vancouver Harbourside Visit www.ccif.net 24 Bodyshop l February 2010 l www.bodyshopbiz.com
products
Welding Helmet Hatch Jammer Steck Manufacturing Company has released a new hatch jammer. The Hatch Jammer XL (PN 17200) allows bodyshop technicians to hold lift gates or hatches in a partially open position for sanding, painting, or buffing, or totally open to easily replace lift struts or work inside the hatch or cargo area without having the hatch fall. The product easily adjusts the work angle of the hatch door from 15” to 21”, 34” and to full extension of 59”.This allows the technician to secure the hatch position to repair and paint the hatch, as well as securing the hatch to replace lift struts and access interior cargo area work. Steck Manufacturing 1-800-227-8325 www.steckmfg.com
ESAB’s new Origo-Tech 9-13 welding helmets are solar-powered with ADF filter technology, feature infinitely variable shade level between 9 and 13, and are CSA-approved. The Origo-Tech 9-13 comes with a two-year standard warranty and is backed by ESAB’s 100% Satisfaction Guarantee. The helmets are available in two stylish colours: high-gloss black or yellow finish. ESAB Canada (877) 935-3226 www.easb.ca
Spool Welder Hobart Welding Products has introduced the DP 3545-20 Spool Gun for optimized aluminum and other soft alloy wire welding. The DP 3545-20 plugs directly into Hobart’s IronMan 230 MIG welder’s wire drive system without the need for tools, and uses .030 to .047 in. aluminum, steel, and stainless steel wire, with a wire speed range of 200-1200 IPM. The DP-3545-20 Spool Gun is rated at 200 amp at 60 percent duty cycle. Weighing just 8 lbs. with the cable assembly, the DP 354520 is available through farm/ranch and hardware/tool retailers in the U.S. and Canadian markets. Additional features include: cable sheath and spring strain relief; spool canister that protects the wire and allows users to see the spool easily; and easy-to-remove barrel assembly. The unit comes complete with extra drive rolls, contact tips, and blow-moulded plastic case. Hobart 1-877-HOBART1 www.HobartWelders.com
25 Bodyshop l February 2010 l www.bodyshopbiz.com
Compressor Controller Boge America, Inc. recently launched a new compressor controller, the Boge FOCUS, which operates according to the customer’s actual compressed air demand ensuring optimized system efficiency. The FOCUS controller from Boge has been designed to ensure simple and reliable control for various operating parameters at two levels and serves to monitor, control, and optimize a compressed air system efficiently. A large-scale backlit LCD display with clear text information visibly shows error/maintenance messages, operating states, and all operating parameters. All relevant values are available at a glance, enabling the user to individually configure all essential parameters for efficient operation and complete system control. Boge FOCUS uses a pressure sensor to control whether or not the requested pressure within the compressor station has been achieved. This enables the user to preset minimum and maximum pressures and to control the operation of the compressor station according to demand. Boge FOCUS has been engineered to meet the latest control requirements to ensure safe and efficient operation in all operating conditions. Boge America Canadian Distributor: Compressors Air Us 905 501 0116 www.compressorsairus.com www.bodyshopbiz.com l February 2010 l Bodyshop 25
products
ARC Station Miller Electric Mfg. Co. has introduced its ArcStation, designed specifically for welding and metalworking. This purpose-built workbench is fully customizable and perfect for industrial pros and home hobbyists alike. Welders may choose an approximately 30 x 30 in. or 30 x 60 in. table, a 3/16 or 3/8 in. tabletop, and customize it with optional accessories, including an X-Pattern tabletop, X-Clamps, tool chest, weld curtain, vise, and an assortment of shelving options. ArcStation allows welders to replace older, makeshift welding benches with a safe, sturdy, and ergonomically designed workstation. The optional X-Pattern design simplifies clamping and cleanup. The frame is constructed of 1/8-in. steel, and has a rear crossbar and levelling feet on each leg for maximum strength and stability. Miller Electric Manufacturing 1-800-4-A-Miller www.MillerWelds.com
Liquid weld station Walter Surface Technologies has launched its new Air Force / AF-Weld, a unique system to reduce the costs of welding operations while simultaneously minimizing environmental impact. It also provides a hasslefree welding experience, with an anti-spatter formula that inhibits corrosion, allows for immediate painting, and helps prevent weld porosity. Thanks to the addition of special and natural ingredients, the new AF-Weld anti-spatter emulsion retracts in the presence of heat, leaving the immediate welding area clean and void of liquid. This helpful condition effectively prevents anti-spatter liquid from chemically interacting with the metal during fusion and thus minimizes impurities and porosity in the weld. This aids welders in making “clean” welds and increases both the quality and productivity of their work. Air Force / AF-Weld is comprised of an automatic refilling station, a reusable aluminum bottle, and a 10L bag-in-box of AFWeld anti-spatter product. This Air Force system immediately reduces environmental impact by using compressed air as a propellant and by eliminating the need to dispose of empty aerosol cans of anti-spatter. Walter Surface Technologies (905) 795-8555 www.walter.com
MIG Gun Liner TIG Torches To help provide better joint access, Weldcraft offers several TIG torches with flex-neck designs. The company’s popular WP-9, WP-17 and WP-26 Series of air-cooled TIG torches all feature an optional F or flex-neck model (e.g., WP-17F) for welding applications featuring limited joint access and/or difficult joint angles. Weldcraft also offers valved versions of each of these flex-neck torch models (e.g., WP-17FV) for use with power sources that do not have gas solenoids. Weldcraft’s WP-9F and WP-9FV torches have been designed for welding thin-gauge materials—up to ¼ inch—and offer 125 amp DC and 100 amp AC welding capacity at 60 percent duty cycle. The torches feature a lightweight body that adds to operator comfort and control, even when welding on hard-toreach joints. Weldcraft 800-752-7620 www.weldcraft.com
26 Bodyshop l February 2010 l www.bodyshopbiz.com
To minimize downtime and cost for MIG gun liner replacement, Tregaskiss offers Quickload Liners for its semi-automatic and robotic MIG guns. The liner requires less than half the time and effort for replacement when compared to conventional MIG gun liners, and allows for more regular and easier routine maintenance. The liner consists of a two-piece system with a retainer that installs in the power pin on the first use. The liner portion of the system then feeds through the front end of the gooseneck while the MIG gun remains attached to the wire feeder. Also, there is no need to cut the wire in the MIG gun; the welding operator simply removes the front-end consumables (nozzle, retaining head, and contact tips) and slides the liner over the wire, using it as a guide. Tregaskiss offers Quickload Liners in lengths up to 25 feet for semi-automatic MIG guns and up to 15 feet long for robotic applications. The liners, which are made of high carbon steel, accommodate wire diameters ranging from .035 to 1/16 inches. Tregakiss (519) 737-3000 www.tregakiss.com www.bodyshopbiz.com l February 2010 l Bodyshop 26
Only The Automotive Group Delivers Canada’s Entire Automotive Aftermarket Focused content, unparalleled readership, and audited circulation guarantees your message reaches the market. Jobber News Magazine
Since 1931, the only magazine dedicated to the distribution segment of Canada’s automotive aftermarket. 12 issues per year, plus the Annual Marketing Guide Directory. Audited Circulation: 10,000 plus.
Bodyshop Magazine
Published for Canada’s collision repair professionals since 1970, with the best readership in the country. Six issues per year. Audited Circulation: 10,000 plus.
Service Station & Garage Management
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THE
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products
New Prybar Design Snap-on has designed the next generation of prybars: the heavyduty 48-inch and 54-inch Striking Prybars with Crown Handle (SPBH series). “Snap-on heavy duty prybars offer increased reach, which means less bending and reaching with your body. Stronger and larger components reduce the chance of off-centre strikes, which is important when using a heavy prybar in one hand and a heavy hammer in the other,” says Bryan Hantke, product manager for Snap-on. “Our heavy-duty prybars also feature a handle where two large hands can be comfortably positioned when high leverage is needed. They are a perfect combination of ergonomics, performance, and durability.” Snap-on Striking Prybars with Crown Handle are offered in high-visibility colours so they can be seen in dark and dirty environments. Both the 48-inch and 54-inch prybars are available with a red handle (SPBH48R and SPBH54R) or an orange handle (SPBH48O and SPBH54O) and feature exclusive “crown” handle which provides protection from off-centre hammer strikes; 10-3/8inch long handle for a comfortable, secure grip; and cylindrical design with taper that allows user to find a comfortable grip. 877-SNAPON-2 (877-762-7662) www.snapon.com
✂ ✂
Battery-Powered MIG Welding Package Leave the generator and extension cords behind. Hobart Welding Products has introduced the Trek 180, a self-contained battery-powered MIG welding package and the first professional system for true “off-the-grid” welding. The ultra-portable (52lb.) Trek delivers heavy-duty weld power to fabricate or repair 24-gauge- up to 1/4-in.-mild steel in a single pass. Two internal high-performance batteries enable the Trek to achieve a 100-percent charge in 90 minutes, or a 20-minute, 80-percent quick charge from a standard 115V wall outlet or within a vehicle using an automotive power inverter. The Trek 180 is designed to meet the demands of metalworking enthusiasts in DIY, automotive restoration, racing, and home hobby markets who require great arc performance in an extremely portable package. Hobart 1-877-HOBART1 www.HobartWelders.com
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HAND CLEANERS
AUTOMOTIVE PARTS & ACCESSORIES Goodyear Engineered Products www.goodyearep.com/aftermarket www.goodyearbeltsandhose.com The officially licensed belt of NASCAR. Gatorback, the quiet belt. You can never replace Goodyear quality. NGK Spark Plugs Canada Limited www.ngksparkplugs.ca The World Leader in Spark Plugs, Oxygen Sensors and Ignition Wire Sets. Used by 87% of the World’s OE Manufacturers S.B International Inc. www.sbintl.com “We keep engines humming” ZEX AC Compressors Division of Mister Starter
www.misterstarter.com Remanufactured/New A/C compressors and Turbochargers/Superchargers for complete line of cars and trucks, DOMESTIC & IMPORTS. Custom Rebuilds also available for your needs.
COLLISION REPAIR Masters School of Autobody Management www.masters-school.com Masters offers a number of education programs and implementation follow-up programs designed to take bodyshops to the next level of success.
REFRIGERANT
GOJO Industries, Inc. www.automotive.gojo.com GOJO is a leading manufacturer of skin care products and services for many marketing including automotive and manufacturing. GOJO continues to pursue a commitment of creating well-being through hand hygiene and healthy skin.
LUBRICANTS & ADDITIVES Empack/emzone Automotive Care & Maintenance www.emzone.ca The high performance emzone product line is specially formulated for your detailing and maintenance needs. For maintenance: Lubricants, Brake Cleaners, Degreasers, and Coatings. For detailing: Glass Cleaners, Carpet Foams, Tire Shines and Auto Fresh.
REFRIGERANT Duracool Refrigerants Inc. www.duracool.com Nationally Distributed by: Deepfreeze Refrigerants Inc. The Leaders in Hydrocarbon Refrigerant Technology Guaranteed In writing not to harm any Mobile A/C System You can feel the Difference that Quality Makes “Our Formula Never Changes”.
advertiser index DuPont Performance Coatings
5
www.cromax.dupont.com
H&S Auto Shot
10
Maaco
7
www.maaco.ca
Pioneer Steel
8
www.pioneersteel.ca
PPG Canada
31
www.ppgmvp.com
Rondex Limited
32
www.rondex.ca
SATA
2
Stay up to date at www. VOCcompliance.com
www.hsautoshot.com
www.sata-gmbh.com
Empack / emzone Refrigerants www.emzone.ca Eco-friendly, non-ozone depleting and system safe. The emzone quality A/C Refrigerant product line includes stop leak, system conditioner, oil charge, UV dye leak detection, and dryer offering colder vent temperatures, improved system efficiency, lower head pressure and greater gas mileage. Ideal for cars, trucks, SUVs and tractors.
TOOLS & EQUIPMENT AIR LIQUIDE CANADA INC. www.airliquide.ca Your one-stop shop for all your industrial gases and welding supplies. Rotary Lift www.rotarylift.com World Leader in Lift Productivity
WAREHOUSE DISTRIBUTORS & BUYING GROUPS Bestbuy Distributors Limited
www.bestbuyautoparts.ca Independent buying group and warehouse distributor that allocates its profits to member shareholders and provides unbeatable value for independent jobbers. The E.R.I. Group www.theerigroup.com Canada’s Premier Machine Shop Buying Group Kerr Machine Shop Group Inc.
www.kerrmachineshopgroup.com Buying group for machine shops and performance shops.
from the publisher
Insuring Excellence One of the most interesting dynamics in the collision industry is the relationship between insurance companies and the bodyshop. In one sense, it can be described as the most critical customer-vendor relationship in the industry; in another it can appear more like two competing interests vying for the allegiance of the consumer. Day-to-day relations between the two entities can be phenomenally productive at times, appear schizophrenic at others, and occasionally, become downright hostile. And the tenor of the relationship can ebb and flow with every work order. In any in-depth discussion on the issue, generalities about how the relationship is good quickly give way to specifics regarding the troubling gulf between what is expected from the collision repair facility and what they can deliver. Anecdotes about this job or that job carry the day as examples of how the system falls apart. Recently a shop owner told me that he wished that we in the media would be more realistic about the repair process: not everything is quite as rosy or goes quite as smoothly as he believes we depict. His concern was not so much that those in the know at the shop level wouldn’t recognize that we are trying to present best practices as examples, but that those individuals on the insurance side may get the impression that a repair always moves smoothly from step to step, and develop financial models accordingly. He was also specifically concerned that the move to waterborne technology was being characterized as seamless and that the technology was a cure-all. Even with the solvent-borne technology that he had been using for decades, he said, there were sometimes problems. Paint one part; everything goes swimmingly. Pull the next one into the booth and wham, the paint is bubbling and curling like broken film in a projector, or ends up with more fisheyes than a Maritime trawler with a record catch. In many of these cases, he said, it is just easier, faster, and cheaper to back up the process and start again rather than trying to find out what the real cause might have been. All of which is just to say that the imperfection of the process in the real world gets hidden from those who are not privileged enough to see it day in and day out. Can every shop strive to improve its performance? Sure. Can those who supply them help? They can and do. Is training needed now more than ever? Of course it is, especially in this low-VOC transition year. But whether it is one in 10 jobs that has a problem—or more, or fewer—at some point the degree of rework reaches the lowest level achievable in the real world. This isn’t an excuse on behalf of shops; it is just recognition that real-world repairs do not occur in a laboratory environment. Even the best-trained and best-equipped establishments are subject to changes in weather, transient changes in conditions at the shop level, human error, and Murphy’s Law. We have to accept the fact that perfection, while remaining a goal, will have to give way to the fact that excellence is the best we can hope for. Everyone involved, from the shop to the claims sector and the consumer—yes, the consumer—needs to understand this. B Andrew Ross aross@bodyshopbiz.com
30 Bodyshop l February 2010 l www.bodyshopbiz.com
Think
lean. UPCOMING PPG MVP EVENTS
“My favorite way to learn is by talking to other shop owners and managers who share the same concerns I do. Working together we can achieve things that none of could do separately. That’s the value the MVP Business Solutions conferences offers.” Tom Bissonnette Parr Autobody Saskatoon, SK
THE PPG MVP TEAM HAS TWO UPCOMING EVENTS NOT TO MISS: •Business Solutions Conference March 28-30 - San Diego, CA • Green Belt, Throughput Performance Training June 7 - 10 - Barrie, ON For more information and registration, visit www.ppgmvp.com.
World Leaders In Automotive Finishes ©2010 PPG Industries www.ppgrefinish.com Pantone 307 CVC C100 M6 Y0 K34