AUSTRALASIAN
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NOVEMBER / DECEMBER 2017
BATES SWITCHES TO TOYOTA YARIS
RALLY CAR
LANDMARK IMPROPER REPAIR COURT RULING
TOY0276 P&P Cover rev.indd 1
2017 NATIONAL WINNERS PROFILES
BEST BODYSHOP PROCESSES
CELEBRATING 2017 INDUSTRY ANNIVERSARIES
16/10/17 11:31 am
NOVEMBER / DECEMBER 2017 WWW.PAINTANDPANEL.COM.AU
NEWS 06
KOBE STEEL CRISIS
The company has revealed it falsified numerous reports regarding steel strength.
08
AUTOCARE 2018
The newest collision repair exhibition will take place in Sydney next May.
10
CAR CRAFT CONTINUES NATIONAL GROWTH
Businesses across NSW, ACT and QLD have all joined the network.
44
IN DEPTH 14
ANY REPAIRER OUTRAGE
The industry reacts to the latest move from IAG and RACV.
18
STUCK WITH THE FINE
The Eagle verdict is a potential watershed moment for the industry.
22
CELEBRATION TIME
We look back on all the great anniversaries celebrated this year.
52
IBIS US
All the key insights from collision industry in America.
FEATURES 30
PAINT & PANEL AWARDS
We wrap up a great night and profile our national winners.
46
NEXT GENERATION: LEVEN SMASH
Husband and wife team, Simon and Christie share their success story.
54
BODYSHOP PROCESSES
The latest products and software to improve your businesses productivity.
30
56
REGULARS 24 CRASH COURSE 26 COOLING IT 28 LONDON CALLING 44 BEST PRACTICE 48 SUPPLEMENTARY 62 PRODUCTS 66 FENDER BENDER
66
EDITORIAL
WHO SAYS OUR INDUSTRY ISN’T GLAMOROUS?
W
E’VE TALKED A lot about the public perception of the autobody repair industry this year. Take note I did not use the S word as we promised never to use it in the pages of Paint & Panel again (unless it’s in quotes, we can’t help it if someone else uses it!). Changing vocabulary isn’t about making the industry seem better than it really is, it’s about reflecting where it is now and where it is moving towards in the future. I love the people in this industry, they are usually fun, smart, full of energy and really appreciative and polite. You totally deserve a full on night of nights to celebrate your achievements which have neccessitated blood, sweat, “Each of the winning ingenuity, creative thinking, investment and probably tears too. A huge section of you run businesses that turn over well in excess of businesses raise the bar $1million, are great employers and allow the government to distribute your even further each year” profits to the rest of us through a complex labrynith of taxes. Each of the winning businesses raise the bar even further each year. Looking at the customer facilities, the cleanliness of the workshop and the equipment invested in, many independent autobody repairers are moving towards the glamour of dealership standards because they realise that this is what sets them apart from the herd and that these standards radiate professionalism and inspire confidence both in the public and work provider. Running a profitable autobody repair business is an increasingly complex and challenging proposition and yet so many of you are doing it brilliantly. As this is the last issue of 2017 I ask you to make a 2018 resolution to start the year with your head held high. Know that your business has survived and hopefully thrived despite harsh market conditions while many others haven’t managed to stay ahead of the very steep curve. Be like our national Bodyshop Award winners and know that while you do things well, they can always be done better and keep searching for those better ways. Meanwhile at Paint & Panel we’ll resolve to do the same.
Sam Street Editor
AUSTRALASIAN
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4 PAINT&PANEL Month / Month 2000
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ISSN 0816-3596. Member Circulations Audit Board
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T2017-008240 TOY0274
“Toyota Everyday Competitive Pricing means I don’t race around in circles.”
Beau Yates Toyota Motorsport Ambassador Australian Drift Champion
Don’t waste your valuable time chasing for competitive parts pricing. Take advantage of Toyota Everyday Competitive Pricing at your local Toyota Dealer. Not only will you be giving your customers the best quality and value repairs, you’ll save time with the full range of Toyota parts available at one place. Contact your local authorised Toyota dealer for more information on Toyota Everyday Competitive Pricing.
toyota.com.au/parts
NEWS AUTOCARE 2018
CAR CRAFT GROWTH
PAGE 8
PAGE 10
FIX AUTO DOUBLES DOWN PAGE 12
KOBE STEEL SCANDAL EXPOSED JAPANESE MANUFACTURER AND distributor of aluminum extrusions, Kobe Steel, has come under fire in the US after reports revealed its staff falsified data about the strength and durability of some aluminum and copper products used in cars. According to reports by Reuters, companies such as Toyota, Honda and Subaru have all come forward stating they have used materials that were part of the falsification scandal. Kobe’s shares began to plummet following the announcement, with replacement cost estimates reaching $170 million AUD. The company revealed that it discovered the issue in products manufactured between September 2016 to August 2017, noting there have been no reports of safety issues and that it had distributed these products to over 200 undisclosed companies. Honda has stated that it used materials in car doors and hoods, Mazda has also revealed it used falsified aluminum from the company. In a company statement, Kobe Steel acknowledged the error it made and apologised for the “considerable trouble caused.”
SUNCORP ACHIEVES I-CAR GOLD BRETT WALLACE (PICTURED left), executive manager - industry & repair performance said: “Suncorp is extremely pleased to have been awarded Gold Class Insurer status by I-CAR Australia. The achievement demonstrates the ongoing commitment to training that Suncorp has made with I-CAR as a major training partner. “The industry-leading training that has been undertaken by Suncorp to achieve the Gold Class status, ensures that our assessing workforce remain 6 PAINT&PANEL November / December 2017
highly skilled and equipped with the required knowledge to continue to be at the forefront of a challenging and rapidly changing repair industry. “Suncorp look forward to maintaining the excellent partnership that has been in place with I-CAR and will continue to train and develop our assessing workforce, to provide our customers with the peace of mind that their vehicles are repaired in line with the required specifications and methodology” Wallace said. www.paintandpanel.com.au
Genuine Savings. Genuine Reasons. Mercedes-Benz Genuine Parts Below are just some of the wide range of Mercedes-Benz Genuine Parts that have been reduced. For a full range of discounted parts, please contact your authorised Mercedes-Benz dealership, or go to www.mercedes-benz.com.au/carspartspromotions
Category
Lifecycle Cluster*
Average Price Reduction^
1
19%
2
37%
3
35%
Radiators
Detachable Parts Bumper Outside
Airbags
Inclusions
-
3
31%
• Ornamental Pieces • Engine Covers • Bumper Inserts • Licence Plate Mouldings • Vibration Dampers
1, 2 & 3
62%
-
* Lifecycle cluster model allocation. LCC1 LCC2 LCC3
117
156
166
172
176
190
205
212
213
222
231
242
246
251
253
292
451
453
217
218
197
204
207
216
240
163
164
168
169
170
171
199
203
208
209
210
211
215
219
220
221
230
245
450
452
454
^ The average price reductions are based on the difference between the December 2016 and January 2017 relevant manufacturer’s maximum recommended retail prices for a range of genuine parts. The price reductions referred to herein are averages only and specific parts may have a lower or higher level of price reduction. For information on specific parts, please contact your preferred authorised Mercedes-Benz dealership. Valid to 31 December 2017.
NEWS IN BRIEF FIX AUTO’S LEGAL EAGLE
Fix Auto World CFO Dan Hogg has announced the appointment of Jeffrey Lieberman to the role of VP legal affairs and general counsel for Fix Auto World. The newly created role will give Lierberman the opportunity to provide input and direction on the organisation’s global growth. Lierberman will also be involved in the network’s critical business initiatives including acquisitions, growth of existing territories and expansion into new markets. He will collaborate internally on corporate affairs and in an advisory capacity and will oversee global legal affairs for all of Fix Auto World’s brands, including Fix Auto, NOVUS Glass and Speedy Auto Service.
FIRST 5 STAR CHINESE CAR
ANCAP announced it has awarded the first five star safety rating to a Chinese vehicle with the MG GS rising to meet the top safety threshold. The five star ANCAP safety rating applies to all MG GS models built from August 2017 and on sale from October 2017. The MG GS is produced by SAIC Motor and distributed locally by MG Motor Australia. ANCAP CEO James Goodwin said intial tests revealed the car did not meet the requirements for a five star rating but congratulated the company on making the necessary adjustments. “MG must be commended for upgrading this model and this achievement raises the bar for other similar brands.”
8 PAINT&PANEL November / December 2017
AUTOCARE 2018 THE AUTOCARE CONVENTION, will see significant involvement from the collision repair sector with many of the industry’s major companies committing to take part. Autocare 2018 will be held on May 4 and 5, 2018 at the new International Convention Centre (ICC) located at Sydney’s Darling Harbour. I-CAR has become a Diamond sponsor of Autocare 2018 and will have an integral involvement in this educationled industry event along with many more major suppliers to the industry. I-CAR will be joined by a number of the collision repair industry’s biggest names, including Lowbake Australia, who will have their portable spray booth in operation at Autocare 2018,
providing live demonstrations of refinishing. Other industry players taking part include: 1Q1, Axalta Coating Systems, Bodyline Imports (Autolac), Car-O-Liner Australia, Dent Wizard Tools, Fix Auto Australia, GPI Automotive Products, Henkel Australia, Kemppi Welding Machines, Nippon Paints, Saint-Gobain Abrasives and Valspar Automotive Australia. Autocare 2018 will feature plenary sessions and seminars across three key streams that are integral to the continued success and growth of the collision repair, automotive parts and service industry. These important events address the theme of Autocare 2018, being disruption, innovation and rejuvenation.
WA: RISING CASES OF ‘CLAIMS HARVESTING’ THE INSURANCE COMMISION of Western Australia has announced a concerning rise over the past two years in the amount of motor injury insurance claims in WA, known as ‘claims harvesting’. Claims harvesting is the practice of unethically pursuing accident victims to encourage them to lodge a motor injury insurance claim. Victims are often then encouraged to exaggerate or even lodge false claims. Since 2015, the Insurance Commission has received 322 motor injury insurance claims it suspects originated via claims harvesting. The Commission is working alongside the relevant Government entities to
investigate these claims, a number of legal firms are suspected of involvement in claims harvesting. Information is gathered in cold calls made to members of the public by people pretending to be from a crash investigation company or the Commission. The callers may deceive the people involved in the crash by promising money if they lodge a claim through a specific legal firm.
www.paintandpanel.com.au
NEWS IN BRIEF THE ANCAP SAFETY APP
Federal minister for infrastructure and transport Darren Chester joined ANCAP to launch a new consumer information app developed to help Australians make safer vehicle choices. In a global first, the Safety app allows customers to access ANCAP safety rating information in the lead-up to a vehicle purchase. It also provides additional safetyrelated content, features and news to see the conversation of safer vehicles continue post-purchase. “Getting Australians to drive the safest car they can afford will help to reduce road trauma and by checking this app, vehicle buyers will be better informed before they make their choice.”
HOLDEN ZB REVEALED
Holden revealed the ZB Commodore VXR to the Australian public for the first time at Motorclassica in Melbourne. The ZB Commodore VXR has a 3.6-litre V6 engine paired with a 9-speed transmission and adaptive all-wheel-drive capable of producing 235kW and 381Nm torque. The next-generation Commodore VXR will be on sale alongside the rest of the sedan range in early 2018.
10 PAINT&PANEL November / December 2017
CAR CRAFT GROWTH
CAR CRAFT NSW ACT and QLD both welcome new businesses into the group. Hume Bodyworks becomes the sixth shop in the ACT region to join the network of independent repairers. Set up just over 10 years ago by Geoff Parkins who had a vision that owning a collision repair facility was the natural progression for him. Parkins completed his trade as a spray painter and then spent some years as a paint rep for Glasurit before starting on his own. Parkins has remained a relatively small player in the Canberra landscape, however with the demise of many shops in the region and the consolidators moving in, has recently started building
his own facility which will be up and running in the next few months. “Joining Car Craft is one of the ways we are attempting to ‘Bullet Proof’ our business in what has become a very volatile industry. I am very proactive in helping the industry, and if you’re not part of the solution, then you are probably part of the problem.” The latest addition to the Car-Craft Qld fold is Warwick Panel and Paint in the country town of Warwick on the Darling Downs. Warwick Panel and Paint was started back in 1977 and bought in 2004 by a young couple of locals, Brett and Rachel Benz who have continued to operate and grow the business.
TWO MORE SHOPS STRIKE GOLD I-CAR AUSTRALIA GOLD Class Coordinator Gary Wood announced that B&A Motor Body Repairs in Clayton, has been awarded the I-CAR Gold Class Collision status as well as Euro Collision in Moorabbin both in Victoria. “The team at B&A Motor Body Repairs have shown great commitment to the training program. Through a combination of virtual classroom sessions, ITA training in conjunction with PPG and participation in the I-CAR welding certification, they fully deserve the recognition of I-CAR Gold Class status” said Wood. “Partnering with I-CAR has assisted us to gain the confidence to meet the many changes within the industry to ensure we are prepared for the future.” said B&A’s Tony Mazzeo. “Euro Image has shown great
commitment to the Road2Gold program over the past 18 months and this has resulted in seven members of staff becoming Platinum Individuals with I-CAR. The ongoing training to maintain Gold Class accreditation will ensure that their staff members continue to develop their industry skills and knowledge,” said Wood.
www.paintandpanel.com.au
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NEWS TOP WEB STORIES
Here are the top three stories on the Paint & Panel website for the last two months. If you haven’t signed up for our weekly e-newsletter you can do so free on our homepage, www.paintandpanel.com.au. Our online traffic continues to go from strength to strength, building on our record month in August. We publish many stories online that we don’t have room for in the magazine so don’t miss out on keeping up with the latest industry news and products. You’ll also find different content and news on our Facebook page.
FIX AUTO DOUBLES DOWN FIX AUTO AUSTRALIA has announced that Wangara-based Allen’s Vehicle Refinishers (AVR) as the latest to join the franchise. The business is owned and operated by Andy and Gail Allen. In 2012, AVR was nominated for and won the Paint and Panel Best Small Shop Award, Western Australia. Now operating as Fix Auto Wangara, the business undertakes work from small paintless dent repairs to major accident damage. “In our opinion, Fix Auto is different from any other repair network, as the businesses are still owner-operated, not managed. We feel that this is very important to ensure the best possible service for our customers,” Allen said. Fix Auto Australia also acquired Osborne Park-based D&T Panel Beating.
The business is owned and operated by Tony and Steve LoPrestri. Tony LoPresti, a seasoned industry professional, opened his first panel shop in 1971 and, in 1992, after continued expansion, found a permanent home in Osborne Park and founded D&T Panel Beating. The next generation joined in 2007, with Tony’s son Steve becoming part of the business. Tony said the decision behind joining Fix Auto was to ensure that his business could remain ahead of the curve in the competitive West Australian market. “We joined Fix Auto due to the changing dynamics between work providers and repairers. Although it was hard, we decided to make the change from D&T Panel Beating to Fix Auto Osborne Park so we can continue to grow this business that we love.”
SEPTEMBER
1 2 3
IAG changes its PDS and hire car policy QBE launches RFP Hollard Insurance buys Calibre
OCTOBER
1 2 3
VACC very unhappy about new IAG policies Watershed $31.5 million John Eagle fine RACV adopts any repairer option
The Paint and Panel Facebook page has separate content to our website, sharing best practice tips from industry magazines and business around the world and highlighting interesting posts from Australian smash repairers. Instagram. We’re fairly new on Instagram but gaining quite a few followers. After all a picture is worth a thousand words.
12 PAINT&PANEL November / December 2017
FAIR WORK TAKES A HARD LINE FAIR WORK OMBUDSMAN Natalie James has welcomed new laws protecting vulnerable workers. The new laws enforce higher penalties for serious contraventions of workplace laws and record keeping breaches. The changes apply to all employers, companies and employees covered by the Fair Work Act. The Act includes a range of measures including an increase in the maximum penalties for employers who deliberately pay workers less than minimum wage and other entitlements under the Fair Work Act 2009. “Businesses that don’t keep the right
records, don’t give proper pay slips, or who make false or misleading records and payslips can face higher penalties.” James said. “The Fair Work Ombudsman will apply the laws judiciously and fairly, and work with business to ensure employers understand their obligations under workplace laws. “Employers should always check their obligations, either by accessing our free and comprehensive tools on our website or asking their employer organisation or another qualified workplace relations adviser.” www.paintandpanel.com.au
AWARD-WINNING DESIGNS DEMAND WORLD-CLASS FINISHES The world-renowned designs of legendary automotive expert Chip Foose have been recognised time and again with the industry’s highest honours – including the coveted Ridler Award. And to bring all of his visionary masterpieces to life, Chip always relies on world-class Glasurit® finishes. You too can put the rich liquid color and deep brilliant gloss of Glasurit to work in your shop. Visit www.glasurit.com.au to learn more.
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W567531 02.2017
IN DEPTH
ANY REPAIRER BUT AT WHAT COST?
IAG who previously offered choice of repairer are now charging policy holders if they wish to have thier car fixed outside of the approved repairer network.
“RACV members are also able to choose their own repairer IAG HAS MADE changes to its PDS and its online booking system outside of our network, if they have added the ‘Any Repairer’ to include choice of repairer, at a significant, extra, cost and now option on their comprehensive motor insurance policy. offers not-at-fault drivers a hire car. The move has sparked “This option can be selected at the time of renewing or controversy. The option on the NRMA website for choice of purchasing a policy or mid-term as long as there is no repairer is ‘Any Repairer’ and the information provided to the unrepaired damage on the vehicle." customer for this option says: “In the event of an accident, The new changes from both IAG and RACV have caused waves your policy automatically includes access to our of dismay in the industry as most people acknowledge that extensive Partner Repairer network. We partner with trusted consumers will automatically tick the cheapest option. businesses to deliver quality, safe repairs and have you back on the road as soon as possible. “If you select Any Repairer you may use DISASTEROUS FOR any licensed repairer of your choice, which INDEPENDENT REPAIRERS “The VACC does not agree, may still include an NRMA Partner VACC executive director Geoff on any terms, that Repairer. NRMA will provide a lifetime Gwilym told Paint & Panel that guarantee on any repairs we authorise.” these changes are potentially consumers should have RACV also announced it will be following suit disastrous for independent choice removed and then with IAG, by offering an ‘any repairer’ option to repairers and will leave consumers be asked to pay for a choice very much worse off. “The main it customers. The company also stated that it will introduce a new ‘mobility’ benefit, which issue here is that parts of the to be returned to them.” will give not-at-fault customers the use of a hire insurance industry have decided car following their accident. that they are going to give people RACV GM motor insurance Mark Geraghty said the changes a choice to remove their choice of repair,” Gwilym said. were introduced to accommodate consumer demand. “I think that, in principle, choice is one thing that we all “RACV is making changes to keep insurance affordable fight for in Australia. We fight for choice at work, we fight for for Victorians. RACV is providing choice in the community. Now we have reached a seminal point our members a choice as to where in insurance land where some of the brands have decided that a they can get repairs when their vehicle is consumer, in their view, may be better off making a decision if damaged. they don’t have choice at all. “Members can choose to have their “Our view is that this is untenable because you will vehicle repaired by our extensive network compromise people that don’t have a lot of money and they are of partner repairers across Victoria. going make a decision to limit their choice because they are 14 PAINT&PANEL November / December 2017
www.paintandpanel.com.au
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IN DEPTH
potentially going to tick a box because its cheaper. We don’t think that’s good for the “Now we have reached a industry or the community.” seminal point in insurance Gwilym says that it’s a ‘no brainer’ that land where some of the if you ask somebody if they want a cheaper insurance policy they are going brands have decided that to tick the ‘yes’ box. a consumer, in their view, “Most people who sign up for an may be better off making insurance policy do it on the basis that they won’t have an accident – and it is a decision if they don’t only at the point when they get their have choice at all.” vehicle back that they become more aware that they could have exercised choice. They realise they could have taken that vehicle to the RIGHT: VAC CEO body repairer around the corner who they have known for 20 Geoff Gwilym years. They didn’t know that that their vehicle may have been BELOW: Jeff shunted off to a repairer 30kms away who has no relation to Williams AMBRA their local business community. Chairman “This is an example of consumers not being fully informed BELOW LEFT: VACC about the ramifications of their decision. Not to mention the newspaper advertising fact that it will isolate smaller independent repairs. Anybody campaign who ticks the no box is also making a decision, without knowing it, that they don’t want their vehicle to have more who aren’t part of the NRMA than one quote at the point of repair – I don’t know why network. I ask – where’s the anybody would think that’s a good idea. evidence that this is going to be “My view is that this will lead to more closures of more better for the consumer? independent body repair shops. I also think the other insurers “In conclusion the VACC does will be forced to follow because of the drive to make money. not agree, on any terms, that When one insurance company lowers the bar, the others feel consumers should have choice they have to follow suit to remain viable – well, make more removed and then be asked to profit. I think this will be the new low bench mark for the pay for a choice to be returned to insurance industry to aim for,” said Gwilym. them that they already had the year before.” “It looks like its another example for the insurance industry When Paint & Panel added ‘Any Repairer’ to a new policy, under to circumnavigate local body repairers - local business. the fictional identity of a 30 year old male with a clean driving “The irony is now that people are invited to pay for something record, the premium jumped close to 14%. that they had before – choice of repairer - and now you are AMBRA chairman Jeff Williams also commented on the effectively being offered the opportunity to sell your rights. changes, urging those impacted to contact the appropriate Letters are being written writing to the ACCC through government representatives and take action. MTAA and independent legal advice sought on whether “Insurers like the NRMA and RACV would normally be this contravenes any laws such as third line forcing congratulated for offering consumers choice on new or renewing or unconscionable conduct. policies. The option called ‘Any Repairer’ alerts consumers they “These changes are likely to force the quicker amalgamation are being asked to pay an extra premium for a fundamental right of shops and will remove work from independent repairers to choice of repairer contained as part of the previous ‘comprehensive’ policy, whilst being subject to the PDS extracts from the new RACV/NRMA PDS’s. “It is clear that both entities ignore our country’s competition policy and it would also appear that without business owners knocking on the door of their local politician, the status quo will continue. “Independent body repairers need to take action. As insurers move to expand greater control over the consumer, your customer. “Repairers need to embrace their existing customers and communicate the potential in not ticking the ‘any repairer’ box which may see them completely lose all rights to choose who repairs their vehicles. “These policies may be legal, but they are another form of steering our customers into NRMA and RACV preferred repair networks bypassing the independent small businesses. This puts our future sustainability at risk NRMA and RACV have laid the foundation blueprint for change to the industry.” 16 PAINT&PANEL November / December 2017
www.paintandpanel.com.au
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IN DEPTH
“State Farm secretly and covertly plays Russian Roulette with its customers and the public by forcing body shops to choose their profits over the safety of the motoring public,” Tracy said. Tracy’s campaign highlighting the insurance industry’s influence over collision repairs, which includes a series of YouTube videos about the crash. This resulted in Texas Watch, a citizen advocacy organisation dedicated to ensuring insurance companies are held accountable, requesting the Texas Department of Insurance to investigate the insurance industry’s “corner cutting” of automobile repairs. Tori Sommerman, deputy director of Texas Watch, said the organisation never felt compelled to involve itself in the insurer-collision relationship until this lawsuit. “We believe body shops should be making safe repairs,” she said. “We also believe insurance companies should prioritise policyholder’s safety.” The bodyshop director for John Eagle Collision Centre admitted, under oath, on July 7, 2017, that John Eagle deliberately violated Honda’s 2009-2013 Honda Fit Body Repair Manual when it glued the new steel roof on to the 2010 Honda. Honda’s official repair manual for dealers specifies that a new roof must be welded onto a 2009-2013 Honda Fit when the roof is replaced. According to his testimony, the collision centre’s profits trump safety, “State Farm dictated to John Eagle how the car was to be repaired, i.e., to use adhesive rather than spot welding. Furthermore, State Farm can ‘trump’ the original equipment manufacturer (OEM) specifications because the repair facility needs to get paid.” Tracy stressed that, “State Farm sells auto insurance. They are not in the business of designing vehicles, or testing vehicles, or repairing vehicles. And their adjusters are certainly not professional automotive engineers with an A Texas court has ruled in favour of the expertise in designing vehicles that provide crashworthiness victims of the recent US roof gluing scandal. protection to prevent serious injuries. No insurance company should ever dictate to a collision centre how to repair a vehicle. Such coercion jeopardises public safety on the nation’s highways.” THE CONTROVERSIAL COURT case over the Honda Fit with a The Society of Collision Repair Specialists reported that glued, instead of welded, roof has resulted in a $31.5 million representatives of State Farm and Allstate at the Collision fine for repairer John Eagle Collision Repair Centre, who was Industry Conference for found to be 75 per cent liable. collision repair industry The lawsuit has gained international media attention “The verdict could executives failed to support after it emerged that John Eagle Collision Centre (Dallas) the idea that OEM instructions had used 3M 8115 adhesive on the roof of a 2010 Honda Fit become a watershed are always the standard instead of the 104 Honda-mandated spot welds when moment that will of care - a position endorsed replacing a hail-damaged steel roof on the vehicle. affect collisionby all major collision repair The safety cage subsequenly collapsed because the roof trade groups, I-CAR and even separated in the collision. The accident left Matthew and insurer relationships CIC’s own definition of a Marcia Seebachan trapped in the crushed, burning 2010 and increase public collision repairer. Honda Fit. Matthew was trapped and conscious while his awareness of OEM According to the report, body burned and spent months in hospital. Clint Marlow, director at Now that John Eagle has been assigned 75 per cent procedure.” Allstate, stated “I think liability in the case (the other driver was assigned 25 per there’s a lot of … mechanical cent), Erica Eversman, a collision repair attorney for acumen in our industry, and while most of us are not Vehicle Information Services, says that the verdict could mechanical engineers by trade, I believe that we are educated become a watershed moment that will affect collision-insurer enough to form an opinion”. relationships and increase public awareness of OEM procedures. When asked about OEM repair procedures, State Farm claims “It has the potential to lead to a class action lawsuit,” she said. director Russ Hoffbauer said, “We don’t consider them Gospel.” The Seebachans’ attorney, Todd Tracy, indicated they may The federal lawsuit also accuses State Farm of violating the revive another lawsuit against State Farm, which allegedly had Texas Deceptive Trade Practices Act (DTPA). influence over John Eagle not following OEM specifications.
STUCK WITH FINE
18 PAINT&PANEL November / December 2017
www.paintandpanel.com.au
The excellence of innovation
THE TIME TO ACT IS NOW!
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CELEBRATION TIME
HAPPY ANNIVERSARY There have been so many great businesses and people celebrating anniversaries this year we thought we’d acknowledge those who let us know and wish them many more years of success from the team at Paint & Panel.
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GRAEME CUTHERBERT AUTOMOTIVE
Graeme Cuthbert Automotive celebrates its 15th year as part of the Sheen Group in Melbourne. The company has been in business for over 50 years and is a badged repairer for Volvo, Peugeot and Volkswagen.
U-POL AUSTRALIA Robert and Gay McClymont set up U-POL Australia on 1 December 1996. The company has warehousing and distribution facilities in Sydney and Perth, and a sales and technical team covering all regions.
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WFAANZ
This year marks the 25th anniversary of the International Window Film Association Australasia WFAANZ. In 1992 the NSW government banned auto tint altogether, sending shockwaves through the industry and making apparent the urgent need for an association. WFAANZ played - and continues to play - an important role in positively changing the mindset of individuals employed in these government authorities to enable fairer discussions and therefore outcomes.
20 PAINT&PANEL November / December 2017
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“There are some risks I can control.”
T2017-007765 PSA0900/C
Harry Bates Toyota Motorsport Ambassador Youngest ever Australian Rally Championship round winner
The best way to control risk is through knowledge. In the automotive industry, that means knowing who’s engineering and manufacturing your replacement parts and panels. If they’re not Toyota Genuine replacement parts and panels sourced from an authorised Toyota dealer, there’s no guarantee of authenticity. They could be made by counterfeiters in illegal factories who likely have no quality control, may be breaching labour laws, and are probably impossible to even track down. Don’t risk it. Always go with who you know, and buy Toyota Genuine Parts only from authorised Toyota dealers.
toyota.com.au/parts
CELEBRATION TIME
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WALLABY CRASH SUPPLIES
Wallaby Crash Supplies in Sydney turned 25 last year along with some of our staff being with the company as long as it has been open. Specifically Domenic D’onofrio (24 years), Graham Lucey (25 years), Debbie Evans (22 years), Kate Zovi (18 years) Emily Apap wrote to tell us.
HANSON ROAD CRASH Hanson Road Crash in Adelaide held a huge party in the workshop to celebrate 30 years of a great partnership between Tony Bava and Alasdair Ross.
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CAR CRAFT ACCIDENT REPAIR GROUP
The repair group celebrated its birthday in style on Hamilton Island where the founding members were recognised at a masquerade dinner.
FLEURIEU CRASH REPAIR
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Fleurieu Crash Repairs in SA celebrated 32 years on 16 September. This impressive business won Best Country Repairer in the Paint & Panel Bodyshop Awards on its 30th anniversary. “We all love the feedback we get when we present the client with their vehicle on completion of repair,” says Meredith Abbott.
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LMSR
Garry Maher (left) celebrates 40 years in the industry this year. LMSR in Sydney has seen three generations of Mahers at the helm. Garry and son Dan have worked together since 2002. Dan moved into management in 2007 and bought into the business in 2012. “We plan to work and succeed together for years to come.” Dan says. “40 years does not seem like a long time! I still think of myself as one of the young fellas,” Garry says.
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WAYNE PHIPPS SMASH REPAIRS
Over the years WPSR in Perth has won many industry awards – including Paint & Panel Bodyshop award for best large bodyshop in WA and a national award for best customer experience. It was also crowned as Small Business Development Corp best business in the nonmanufacturing category and best presented bodyshop in WA.
S&S INDUSTRIES Tony Siroen points to quality staff and the service they provide as the secret to enjoying 50 years of business success. It can’t be a bad place to work because they have a number of staff that have celebrated silver anniversaries (25 years) at the company. Almost half the staff have been there for over 20 years.
22 PAINT&PANEL November / December 2017
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CRASH COURSE
TECHNOLOGY AND THE FUTURE OF CARS What the future may look like for the industry with the development of technologically advanced cars and how will we have to evolve.
IMAGE © SCOTT RIGNEY
DO YOU FEEL like it’s almost impossible to plan for the future as you’re witnessing the industry that you’ve long been a part of, and mostly loved, disappear before your increasingly weary and bloodshot eyes? You know that pockets of the crash repair industry still remain strong with plenty of work resulting from generally poor driving skills, loyal customers and the vagaries of the weather. However, in a motoring world being bombarded by eco-friendly and sustainability ideology and the unrelenting predictions of autonomy, it’s no wonder that the crash repair industry’s future appears bleak. Perhaps the key to planning in the midst of this dying light is to actually ask more questions. A paradox, from which the answers could in some way chart a path for the business to embark upon. Looking beyond the pace of technology and what will power vehicles in the near future, one of the most crucial questions would have to be related to which new companies are actively looking at or indeed developing cars. It is the answer to this that has the potential to turn the marketing of cars and the associated repair industry on its head. Apart from some bit players exclusive to the Chinese market, the standout names currently developing cars are technology and phone company related. Samsung, Apple, Delphi, Waymo and Google to name a few. So, in addition to supplying software and hardware to current car manufacturers, what is the possibility of one or more of these getting a foothold on the car market? More than likely this will be with autonomous vehicles. Especially, when you consider that we now have a generation that finds it impossible to sit down or walk anywhere without having their head and mind buried in a screen from a device manufactured by some of those companies. So, brand and product awareness won’t be an issue with their already a gargantuan customer base. Supposing then, that one or more of these phone brands adopts the already proven business and marketing model which has earned them a fortune. Could car ownership, including the aspect of repairs, mimic that of having their phone? A process with which their customers are already familiar. That could mean a third party offering the option of “lease” contracts similar in structure currently made available to mobile phone customers. Depending on the contract, a monthly fee could cover all running, maintenance, repair and insurance costs. This leads to questions regarding who will be doing the 24 PAINT&PANEL November / December 2017
insuring and repairs and, of course, freedom of choice. Self-insurance could be a most attractive proposition for the manufacturer. It would, as with phones, give them complete control over the maintenance and repair of the vehicle. Manufacturer service and repair hubs would need to be established around the country and they would function just like their exclusive tech stores now operating in shopping centres. The vehicle will know where to go for the customer to just hand over their vehicle and everything (claims, loan cars etc) will be handled by a perky and smiling technician. The vehicle will be covered by a warranty similar to their phones. It could stipulate that during the warranty/contract period only a manufacturer approved centre/repairer using genuine replacement parts be employed. This could be easily justified on the basis of litigation and safety. Only highly qualified technicians using sophisticated tooling “Please hold, your call would be allowed to deal with is important to us...” the complexity of the sensors and their set-up. The manufacturer will be able to tell whether the vehicle has been tampered with by an unapproved source and thus void the warranty and/or contract. A major point of difference to a phone contract, will most likely be that the autonomous vehicle will never be owned outright by the customer. It will always remain the property of the manufacturer. At the end of the contract it would be handed back to the manufacturer for refurbishment and offered to the contract market at a reduced rate. The same maintenance obligations, repair and insurance conditions would apply. Unlike the current phone market, this would leave no room for independent autonomous vehicle service and repair centres to operate. The owner/manufacturer will control all aspects of autonomous motoring. Whether this scenario plays out as written remains to be seen. What is certain though, planning and making choices for the independent crash repairer during this transition to autonomy is not going to be easy. By the looks of it, one option is to evolve and begin to align the business with a new autonomous vehicle manufacturer. Getting in on the ground floor, so to speak. Another is to gain manufacturer recommended status with one or more car companies currently in the Australian market. Utilise their expertise, training and specific tooling to repair their cars as they become more sophisticated and autonomous. Eventually, it seems that by not being associated with a manufacturer, a crash repairer may be relegated to exclusively handling cosmetic jobs. Litigation and safety will see to that. www.paintandpanel.com.au
ADVERTISING FEATURE
BATES SWITCHES TO TOYOTA YARIS
RALLY CAR Emerging rally star Harry Bates is set to take a genuine leap in his competitive career when he campaigns a storming new Yaris in this month’s Rally Australia.
Bates, supported by Toyota Genuine Parts, will have the eyes of the rallying world on him when he fires up his turbocharged pocket rocket in the forests around Coffs Harbour. Rally Australia is the last round of this year’s Australian and World Rally Championships, which means Bates will be competing on the same tough gravel roads as rally legends including four-time champion Sébastien Ogier. Bates will also be aiming to impress another four-time title-holder in Tommi Mäkinen, who heads the Toyota GAZOO World Rally Team which has spearheaded Toyota’s successful return to the premier category of world rallying after a break of 17 years. Competing in Coffs has been the target for Bates and the Neal Bates Motorsport team since a bold decision a little over a year ago to switch from their trusty Genuine Parts S2000 Toyota Corolla to the smaller, lighter yet more powerful Yaris. Compared with the Corolla that has served them so well, the three-door Yaris is turbocharged instead of naturally aspirated and offers more suspension travel and a lower centre of gravity. Maximum outputs are substantially higher with
power up almost 18 per cent to 224kW and torque jumping more than 19 per cent to 420Nm. Bates and co-driver John McCarthy have formed an impressive duo, earning third place in the Australian Rally Championship (ARC) last year. This year, Bates became the youngest winning driver in ARC history: he took out Victoria’s Eureka Rally in March and followed up with a dominant performance in his ‘home’ rally in Canberra, winning seven of the 13 completed stages. The 22-year-old led this year’s championship going into the second-last event, Rally SA in September, but sacrificed his advantage in the interests of developing the new Yaris. Frustratingly, an electronics gremlin limited him to competing in just one of the forest stages in the Barossa, leaving him with a slim chance of claiming the title in Coffs Harbour. Bates regards his new Yaris as the way of the future, describing the light, nimble and powerful car as “something special”. He and the team at Neal Bates Motorsport have worked incredibly hard to strive for the best possible chance of success at Rally Australia. “Our experience in Rally SA shows the incredible stress that motorsport puts on a car and the importance of having the right parts, which is why I appreciate the ongoing support of Toyota Genuine Parts,” he said. “All our testing confirms this is a very fast car with nimble handling, great brakes and fabulous suspension. We’ve fine-tuned the car and I’m really looking forward to having a crack at the biggest event of the year,” he said.
COOLING IT
So imagine my surprise when I found out that Indian vehicle manufacturer Tata Motors had partnered with German component supplier Mahle to develop a secondary-loop air-conditioning system in the United States that will be tested with R152a. Tata owns Jaguar Land Rover, which last year accounted for 600,806 of the 757,994 vehicles sold worldwide by the Indian conglomerate, so this development runs deeper than simply reducing refrigerant costs for budgetoriented developing market vehicles (R1234yf is hellishly expensive). In addition to the obvious safety advantage when using flammable refrigerants, the secondary coolant circuit flowing through the cabin also helps increase energy efficiency through its ability to continue There is a potential new arrival on the cooling for short periods without the AC compressor operating. automotive air-conditioning refrigerant Vehicles with idle-stop systems would obviously benefit here, especially as this technology is being extended so that engines scene, writes Haitham Razagui. shut down more often and for longer, including when coasting down hills. Despite the additional weight of the Mahle/Tata secondaryFOR THIS EDITION I am here to tell you loop system, its potential for enhanced efficiency is expected to about another potential new arrival on the deliver fuel consumption reductions of up to three per cent automotive air-conditioning refrigerant compared with an equivalent conventional setup running R134a. scene, R152a, which could join R1234yf and At last month's Frankfurt motor show, I spoke with an expert R744 in providing a successor to good old from Mahle who said secondary-loop systems also have numerous R134a that helped save the ozone layer but advantages for the thermal management of electrified and is now subject to a worldwide phase-down autonomous vehicles. due to its high global With its cost advantage over warming potential. “Even if R152a is again a flash R1234yf, the benefits of When ditching R134a on environmental in the pan, it is becoming secondary-loop systems for grounds was first discussed around a decade ago, ultra-efficient vehicles of the R152a was considered but ultimately rejected by increasingly likely that we will future and its ability to outthe automotive industry because it is flammable. never return to the days of perform R744 in hot climates, The only way to satisfactorily mitigate R12 and R134a when all R152a looks set to make against flammability related risks was to a comeback. devise a secondary-loop system consisting of a vehicles used a single Even if R152a is again a flash in small refrigerant circuit in the engine bay, one-size-fits-all refrigerant.” the pan, it is becoming increasingly which chilled a liquid that was then pumped likely that we will never return to through a heat exchanger in the cabin. No the days of R12 and R134a when all vehicles used a single refrigerant would pass the firewall. one-size-fits-all refrigerant. Of course, this was all too complicated, costly and heavy so For a while it looked like R1234yf might be it, but from alternatives were sought, resulting in the development of R1234yf speaking with decision-makers and engineers in Frankfurt, that is far less flammable than R152a and can be used with hardware significant R&D is being pumped into R744, R152a and who similar to R134a, just beefed up to prevent leaks into the cabin. knows what other alternatives. Now every carmaker on the planet is using R1234yf, Whether or not you thought auto-AC was already a specialised with a handful of German brands also getting into R744 field, things sure are about to get a whole lot more complex. (carbon dioxide).
FORGOTTEN AIR-CON GAS HAS A SECOND COMING
26 PAINT&PANEL November / December 2017
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LONDON CALLING
ARE CUSTOMERS THE APPLE OF YOUR EYE? Fix Auto Dagenham’s Chris Oliver examines the iPhone phenomenon and what we should learn from it. A CONFESSION. I never have, and probably never will, own one of the products I am about to discuss. However, that does not stop me taking an intense interest in many of the things Apple does and says. In its 10th year and eighth model incarnation, I'm specifically talking about the iPhone. Why? Because it is a fascinating study in many and services they didn't previously know they needed. things – product, positioning, pricing, consumer behaviour, What is there not to admire about this model? to list just a few. And I believe there are parallels and things Humans do almost everything to generate feelings. In the to learn for us all. main, we don't have sex to produce children. We don't purchase With its iPhone, Apple has exhibited a rare genius by creating Gucci sunglasses to protect our eyesight from the sun. We do it a new market that defies not only convention but is directly because of how it makes us feel. We do things to make contrary to the usual rules of business. By steadfastly refusing ourselves feel good - and why not? Then we post-rationalise our to chase volume sales and through obsessive attention to design decision making. Apple's biggest insight is to exploit that detail, Apple has changed from a geeky tech company to a feel-good factor and the iPhone's appeal lies not in its dry use company with all the characteristics and behaviours of an as a tool to talk to somebody wirelessly, but in its remarkable aspirational luxury goods brand. The one and only time it did ability of how it makes us feel. bow to pressure and produce the lower cost, plastic-bodied 5C, A-ha, you might say, I've spotted it bombed. There is no space in the market for a flaw, and in part, you'd be a budget versioned Rolls Royce. There is no “Are our business models correct. Most us of us do not spend clamour for less leg-room in first class. five hours a day having sex, or take While looking at a business proposal, someone of low-cost, high-volume, a million trips to the cruddy once said to me about a product, "there is a gap turgid transactions correct recycling centre, but for an Apple in the market". But is there a market in that for our customers, many of user the feeling is any time, any gap, I thought, as I walked away. place, anywhere. Similar to a very high-end fashion brand, whom care deeply about When something changes human Apple's unique formula lies in "taste their vehicles?” behaviour to that extent, we have to making". Conventional business logic says take notice. Are our business models you should do your research, find out what of low-cost, high-volume, turgid transactions correct for our consumers want and then provide it to them, preferably customers, many of whom care deeply about their vehicles? under-cutting the competition at an eye-catching low price. For many people, their car is a passion. They could have Apple's approach, however, is more akin purchased a Skoda, but instead they bought an Audi. It does to an artist or chef – they exist to the same job. Looks the same. Drives the same. But they don't inform, improve or stretch your taste, feel the same. And when their Audi is damaged, some people rather than to reflect it. Steve Jobs once react as though their offspring is injured. Yet, how do those said, "It's not the customer's role to business models that we have allowed, even enabled to develop, figure out what they want". Apple tells us make those consumers feel? Not how an iPhone user feels, I bet. how to think and behave with its Is there a gap in the market? Yes, without question. different approach and systems. Hence, Apple proved beyond any possible doubt that there is a very Apple has the extraordinary ability to Chris Oliver successful market in the gap. suggestively make people accept products 28 PAINT&PANEL November / December 2017
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2017 PAINT & PANEL BODYSHOP AWARDS PLATINUM
GOLD
SILVER
ASSOCIATIONS & GROUPS
SPONSORED BY
A NIGHT TO REMEMBER The national winners of the 2017 Paint & Panel Bodyshop Awards were announced at a magical event at the Establishment boardroom in Sydney’s CBD on 20 October. NEARLY 150 PEOPLE gathered for the Paint & Panel Bodyshop Awards presentation night. As well as the winning business owners and their teams (10 came over from Queensland’s Sommerville Smash Repairs), the sponsors Compass Claims, Mercedes-Benz, Car Craft, MTAA, Collision Repair Expo, Glasurit and Norton St Gobain all brought along additional repairers to cheer on the winners. A huge thank you for all the support the sponsors have given the 2017 awards. First up was the presentation of the state award winners who feature in the September Paint & Panel magazine, each winning shop had a video shown of their facility – you’ll find these on the Paint & Panel YouTube channel. The country repairer award video caused a sensation – if you only watch one video watch that one, these guys really look after their team. In between courses fabulous magicians, The Black Ties, confounded each table with their slight of hand. They took to the stage and brought up various members of the audience 30 PAINT&PANEL November / December 2017
acting as ‘lovely assistants’, including this editor who had to run up and down the stage in high heels. Judge Neil Powell was subjected to a poem written by the editor to thank him for his many years of service. Powell, who’s knowledge and passion for the industry is incredible, owns the most unreliable sat nav that has been the cause of the two of us losing valuable time on the judging circuit. Powell was presented with a new sat nav, so fingers crossed for next year. The guests heard from Patinum sponsors James Frape of Compass Claims and Axalta Coating systems’ Steve Brett. Gold sponsor MercedesBenz and silver sponsors Car Craft, Norton St-Gobain, MTAA, Glasurit and Collision Repair Expo all came to the stage to present awards. Feedback from the event has been fantastic with the only improvement suggestion being that all the winners get a chance at the microphone to thank their teams. The Paint & Panel team have plans for an even bigger event next year, we want to bring more of the industry together in a positive atmosphere to network and celebrate achievments.
A WORD FROM OUR SPONSORS The awards program is an expensive one with a huge amount of travel, administration and promotion costs as well as the presentation evening itself. Expensive, but totally worth it as far as our sponsors are concerned who all signed up for a second year in a row without a moment’s hesitation. www.paintandpanel.com.au
Steven Brett of Axalta Coating Systems are platinum sponsors and are also passionate about sustainability - an award they have sponsored for many years said: “Each year, the Award nominees reflect increasingly high standards and share some very worthwhile innovations. The quality of nominees and the underlying effort that that they have put into their businesses is credit to them and the industry in general. It is an honour to be associated with these awards.” James Frape from Compass Claims brought along both his team and some repairers who weren’t in the running for awards to cheer on those who were. “When asked whether we wanted to sponsor the awards for the second year running it really wasn’t a hard question to answer.” he said. “This year the night went up another notch and with the grand plans the team at Paint and Panel have for next year we look forward to being a major partner once more. So many shops work so hard and to see their happiness in return for the recognition they deserve is just reward. Each and every one has their own story of how they have achieved success, and its often in the face of adversity. It’s great to be part of such a special night for the industry and we look forward to it growing year on year.” Gold sponsors Mercedes-Benz also brought along some of their approved repairers to the evening’s celebrations Brenton Doley, parts sales & autobody manager Mercedes-Benz said: “Congratulations to Paint & Panel for hosting a fantastic evening, it was a pleasure to witness the passion shown by all. Mercedes-Benz supports quality and it was great to see the winners and nominees also striving to achieve a quality standard within each of their operations.” www.paintandpanel.com.au
MAIN: James Frape. ABOVE LEFT INSET: Nick Farago (left) being presented with Axalta Sustainability award by Steven Brett. TOP CENTRE: The Black Ties magicians were great. TOP RIGHT: Car Craft taking snaps of winning members. ABOVE RIGHT: Scott Elder of Bennett Elder Smash Repairs receives his award from James Frape. RIGHT: Judy Neeskens of Plaza Crash Repairs with Steven Brett. November / December 2017 PAINT&PANEL 31
2017 PAINT & PANEL BODYSHOP AWARDS
NATIONAL BEST SHOP WINNERS There are so many autobody repair businesses raising the bar for the industry, standards climb each year. Deciding on the national winners is no easy task. HOW DO WE choose who wins in their category? The national best shop winners in each category are drawn from the state winners. To be a state winner you already have to excel in every aspect of the judging criteria, so what tips a business over the edge to superstardom? It’s a combination of factors including having a clear vision for the business, attitudes towards staff, innovative ways of doing business and a positive go-getter attitude. We say it every year, these awards are not a beauty contest – although there might be an element of that for the new shop category. We visit shops during working hours and, now the judging team has nearly 20 years experience between them, notice if staff are happy and productive. If the workshop is reasonably clean and well organised, with equipment and consumables easy to find and in good order that goes a long way towards the happy productive staff. Dirty shops can’t be as efficient as cleaner businesses especially as dirt is the enemy of the spray painter and a waster of valuable
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time and therefore profit if endless denibbing is needed to get the vehicle up to scratch. A clean orderly workshop also indicates a healthy staff culture - team members who take pride in and have respect for their workplace. Our national winners tend to be involved in their community and in the industry. They take their blinkers off and try to foster as many beneficial relationships with suppliers, work providers and other repairers. They take time to attend events which could inspire them or increase their knowledge. This year’s winners all have different personalities and different business models. What they do have in common is total focus, a steel will to succeed, an obsessive need to constantly improve processes and facilities, dedication to quality and customer satisfaction and a Trojan work ethic.
Sharp and modern Damage Control. LEFT: From left Phillip Cox, Anthony and Eva Arnold with Steven Brett.
BEST NEW SHOP DAMAGE CONTROL Alright, the fact that Damage Control Accident Repair Centre in Forrestdale WA is ridiculously gorgeous (a word not often associated with autobody repair facilities) didn’t go against it. Stunning exterior in bold, eye-catching orange livery, plenty of parking, contemporary, attractive business logo are all ticks. But build this business frontage so that it faces 33,000 potential customers who drive by daily and you’re definitely onto something.
www.paintandpanel.com.au 08299 APP Compass HPH.indd 1
It’s a bold step to move the business to another suburb and start from scratch – but they do say that fortune favours the brave. A definite industry trend is reception areas that would put boutique hotels to shame. Eagle Smash Repairs in Queensland and the majority of our winners would make many a customer walk outside to check they were in the right place. Damage Control doesn’t disappoint here, or in the boardroom upstairs or in the offices. However it is the workshop where the team’s passion for the business shines brightest. State of the art everything here, beautifully laid out for optimum workflow. Anthony Arnold has
November / December 2017 PAINT&PANEL 33 6/11/17 2:30 PM
2017 PAINT & PANEL BODYSHOP AWARDS
built his dream shop, hell he’s built a lot of people’s dream shop and it was undoubtedly a big investment. However, nothing is over the top, just beautifully designed and executed. The mechanical and tyre offering is a great way to build relationships with customers so the business is front of mind if they do have an accident. What Arnold has achieved here is making his business stand out in a relatively small WA crowd and we imagine that this will help his investment pay off.
TOP: Dealership style reception at Len Hollis Repair Facility. TOP RIGHT: Axalta’s Steven Brett (left) and Darren Myers of Len Hollis. RIGHT: Paull & Warner. BELOW: Steven Brett and Nick Farago (elft) of Paul & Warner.
BEST BOUTIQUE SHOP AXALTA SUSTAINABILITY AWARD PAULL & WARNER WA did well this year in the nationals with Paull & Warner in Belmont snabbing Best Boutique. It was very close as Bennett Elder in Sydney also really impressed the judges. Business partners Nick Farago and Heath Barber have seen the wind blowing towards MSOs and decided to step into the breeze. Their second shop is stylish, practical and well kitted out with a keen emphasis on customer comfort. Both benefit from careers in the supplier chain which allowed them to visit a huge range of repair shops and observe what works and what doesn’t. That the pair impressed us with their sustainable business practices is evident in it collecting the Axalta Sustainability award this year – we will cover this in the January issue. A lot of thought, planning as well as heart and soul have been invested in the business – we’ll be keeping an eye out for shop number three in the next couple of years.
BEST MEDIUM SHOP BEST CUSTOMER EXPERIENCE LEN HOLLIS REPAIR FACILITY Darren Myers has created an exceptional customer-focussed business, so much so that he also won the best customer experience award. Another way that our national winners stand out is that they often don’t follow industry trends but set them. Myers has had an ipad bar for a couple of years now. We loved the open dealership-style reception desk instead of a counter. The whole of reception is soothing which is what you want if you’ve had an accident. There’s a baby changing table in the outrageously opulent toilets and even a difiribulator in the hallway. Mortlake is a wealthy suburb and Myers has pitched it just right. Staying a step ahead is a mindset – has he repaired any electric cars yet? No. But he’s installed a car charger so he’s ready when the opportunity arises. He was another early adopter of the curtained aluminium repair bay. Forward thinking and customer-focussed – if you’re a manufacturer or a work provider what’s not to love? 34 PAINT&PANEL November / December 2017
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LOWBAKE WOULD LIKE TO CONGRATULATE THE FOLLOWING 2017 PAINT & PANEL BODYSHOP AWARDS STATE WINNERS... NATIONAL
CAPITAL SMART, BANYO
BEST MSO (MULTI-SHOP OPERATOR) Lowbake would like to congratulate Simon Dyer and his team for achieving the national award for Best Multi-Shop Operator. Equipment installed includes Lowbake IR Gas Preparation Bays, Lowbake Parts Booth with Rapid Air Drying System and Lowbake Overhead LED Light Bays. We wish Simon and his team every success for the future.
PETER KITTLE COLLISION
BEST DEALER OWNED SHOP AND OPERATIONAL EXCELLENCE Lowbake would like to congratulate Paul Whelan and his team for achieving the National Award for Best Dealer Owned Shop and Operational Excellence. Equipment installed includes the Lowbake IR Gas Preparation Bay, the Lowbake Single Arm Gas IR, and the Lowbake ALPHA Spray Booth. We wish Paul and his team every success for the future.
SCOTT STEPHENS - SMASHTEC
RISING STAR Lowbake would like to congratulate Scott Stephens for achieving the National Award of Rising Star in the industry. Lowbake are proud to be Scott’s preferred supplier of paint shop equipment and wish him all the best for the future.
LEN HOLLIS REPAIR FACILITY
BEST MEDIUM NSW, BEST CUSTOMER EXPERIENCE AND NATIONAL BEST MEDIUM SHOP Lowbake would like to congratulate Darren Myers and his team for achieving the National Award for Best Medium Shop and Best Customer Experience. Equipment installed includes the Lowbake IR Gas Preparation Bay and the Lowbake Premium Ventilated Paint Mixing Room. We wish Darren and his team every success for the future.
KEN MORLEY SMASH REPAIRS
BEST COUNTRY REPAIRER Lowbake would like to congratulate Pat Morley and his team for achieving the National Award for Best Country Repairer. Equipment installed includes Lowbake Tradesman Spray Booths, Lowbake End Draught Preparation Bays and the Lowbake Premium Ventilated Paint Mixing Room. We wish Pat and his team every success for the future.
DAMAGE CONTROL ACCIDENT REPAIR CENTRE
BEST NEW WA AND BEST NATIONAL SHOP Lowbake would like to congratulate Anthony Arnold and his team for achieving the National Award for Best New Shop. Equipment installed includes Lowbake ALPHA Spray Booths with Rapid Air Drying Systems (RADS), Lowbake Premium Ventilated Paint Mixing Room and Lowbake Down Draught Preparation Bays with Overhead Electric IR. We wish Anthony and his team continued success for the future.
VICTORIA
CAPITAL SMART, ROWVILLE
BEST NEW Lowbake would like to congratulate Nick Elkington and his team for achieving Best New facility in Victoria. Lowbake are proud to partner with the SMART group and be their preferred supplier of paint shop equipment. CSRA Rowville uses the very latest Lowbake IR Gas and Lowbake Rapid Air Drying System (RADS) technology. We wish Nick and his team every success for the future.
NEW SOUTH WALES
SMASHTEC
BEST NEW Lowbake would like to congratulate Scott Stephens and his team for achieving Best New facility in New South Wales. Lowbake are pleased to have been chosen by Scott to deliver a facility that exceeded his expectations. Equipment installed includes the Lowbake IR Gas Preparation Bay and Lowbake ALPHA Spray Booth with Rapid Air Drying System (RADS). We wish Scott and his team continued success for the future.
SOUTH AUSTRALIA
PLAZA CRASH REPAIRS
BEST NEW Lowbake would like to congratulate Eric & Rob Giro and their team for achieving Best New facility in South Australia. Equipment installed includes the Lowbake Craftsman Spray Booth, Lowbake End Draught Preparation Bays with Overhead Electric Motorised IR as well as the Lowbake Premium Ventilated Paint Mixing Room. We wish Eric, Rob and their team every success for the future.
HANSON ROAD CRASH REPAIRS
BEST BOUTIQUE Lowbake would like to congratulate Tony Bava, Alan Ross and their team for achieving Best Boutique facility in South Australia. Equipment installed includes the Lowbake Craftsman Spray Booth. We wish Tony, Alan and their team every success for the future.
EBLEN COLLISION REPAIRS
BEST LARGE Lowbake would like to congratulate Dario Tonon and his team for achieving Best Large facility in South Australia. Equipment installed includes withe Lowbake IR Gas Preparation Bay and Lowbake Premium Ventilated Paint Mixing Room. We wish Dario and his team every success for the future.
QUEENSLAND
SOMMERVILLE
BEST LARGE Lowbake would like to congratulate Carl & Chris Agnew and his team for achieving Best Large facility in Queensland. Lowbake has worked with Chris over many years and we wish him and his team every success for the future.
ALL OF THESE WINNERS USE AND RECOMMEND LOWBAKE EQUIPMENT AND BENEFIT FROM THE ENGINEERING AND QUALITY THAT LOWBAKE OFFER - YOU TOO SHOULD FOLLOW THE LEADERS AND TALK TO LOWBAKE TODAY! 20 LUISA AVENUE, DANDENONG SOUTH, VIC, 3175 TOLL FREE: 1800 337 340 ENQUIRIES@LOWBAKE.COM
2017 PAINT & PANEL BODYSHOP AWARDS
BEST LARGE SHOP B&A MOTOR BODY REPAIR This is a huge site in Melbourne which has grown organically over decades. This family business radiates a passion for cars, quality and customer service. Offering full mechanical services enlarges the customer base. The Mazzeos’ (pictured below with James Frape from Compass Claims) professional attitude is evident in the way they have nurtured relationships with manufacturers and work providers, who they consider to be business partners. That’s the mindset that is needed to succeed in today’s repair business landscape. Again, the customer area could put a dealership to shame. How they treat their team is evident in the number of long serving members demonstrating that providing a great working environment and culture insulates you from any skills shortages because talented technicians want to work for you.
BEST DEALER OWNED SHOP AND OPERATIONAL EXCELLENCE PETER KITTLE COLLISION When we walked into Peter Kittle Collision in Adelaide manager Paul Whelan said ‘we do things differently here,’and the judges eyes rolled a little with a ‘yeah yeah’. Oh, we wrong, they really do things differently and extremely well, hence they also won the operational excellence award. Paul Whelan cut his teeth in some big shops, his previous gig was at the humungous Carrisbrook Collision. He had the luxury of building this facility from scratch and the entire site is built on lean principles – he had been working for Kittles for 12 months before the first car came in for repair. They benefit from some shared dealership facilities such as the uber-cool laser car wash. FROM LEFT Tony, Bill and (far right) Dominic Mazzeo, B&A with James Frape of Compass Claims.
Every car is washed before it enters the workshop – as you can imagine the workshop is really clean. It’s the attention to detail that impresses. Every single action has been broken down and the best product and process selected for maximum efficiency and profitability. Every cost is monitored and reviewed monthly. From the large solar array on the roof, to the temperature controlled paint mixing room which ensures the perfect paint viscocity to the air conditioned spray booths – yes you read right. Air conditioned spray booths, especially in hot Adelaide summers ensure there is no loss of production on scorching days as well as providing the ideal painting temperatures. It’s not just about quality but also about cost and using the least paint for the most coverage. The facility repairs around 50 cars per week – and not just Toyotas, it has to stand on its own two business feet. If we were going to split hairs... nope, no hairs to split - we couldn’t find fault. Dealerships don’t have a great track record with running bodyshops – with dealer principles often thinking that service managers can understand the complexities of dealing with insurance companies, proper quoting and the myriad variables that occur everyday in body repair. Peter Kittle haven’t made that mistake and have allowed Whelan and his team to create a sustainable repair business, although Warren Tudor who accepted the award admitted it had not been an easy journey.
BEST MSO CAPTIAL S.M.A.R.T BANYO This is the first year that Capital S.M.A.R.T has taken part in the awards and we were very impressed. Jimmy Vais and his team have quite simply changed the face of the industry – a fact that was acknowledged in the acceptance speeches of more than one of our national winners. Capital S.M.A.R.T has a great culture full of professional, driven individuals who obviously have great pride in the company they work for. The business also has its own dedicated program for apprentices. S.M.A.R.T now employs over 1000 staff and repairs over 3,500 vehicles per week. www.paintandpanel.com.au
FAR LEFT: FROM LEFT: David Priestly, Glasurit with Warren Tudor, Peter Kittle Best Dealer Shop. THIS IMAGE: Capital S.M.A.R.T Banyo. BELOW: Terry Vearing from Ken Morely Smash Repairs with Helen Davies Paint & Panel.
Capital S.M.A.R.T Banyo, Queensland can only be described as palatial. It’s an enormous building with breath-taking kerb appeal – it’s a shame that it’s in an industrial estate. It’s probably the sky high ceilings that make it seem bigger than the other sites but it is comparable with Rowville and Mulgrave in Victoria at 4,060sqm. You could safely land a plane inside – the team has plenty of room to get things right and it is superbly designed for maximum workflow. Again, everything has a process and measuring metrics. What really stands out is the top quality equipment and products sourced in Australia used throughout the repair chain. The company has phenominal buying power but it could just as easily use it to make more profit buying lesser consumables for example. Banyo has the usual bright red reception capsule seen in many of the groups workshops, with coffee machines and tables in case people have to wait. Around 130 cars per week drive in and out of Banyo and we’ve seen other high volume driveable shops that really look like they put out that many cars. Banyo has a calm atmosphere with everyone knowing what they need to do and when and the workshop is a clean at midday as it was at 8am and will be when the doors close. The bays are big and the Lowbake drive-through booths and arches are smart and productive. The layout is echoed in many other of its facilities but Banyo really took our breath away.
www.paintandpanel.com.au
November / December 2017 PAINT&PANEL 37
2017 PAINT & PANEL BODYSHOP AWARDS
BEST COUNTRY REPAIR KEN MORELY SMASH REPAIRS This Wagga Wagga shop is run by a second generation brother and sister team Pat and Jacinta Morely. Their dad Ken, opened the doors in 1978 and retired in 2014. Since taking over the reins they’ve purpose built a stunning workshop which you have to check out on our Youtube channel. Finding and keeping staff in regional areas is a challenge. Pat says: “We wanted to be very staff focussed and make it a nice place for them to come and work. Without them we’re nothing. So we decided to add an upstairs area for staff with a small gym, bar, pool table and their lunch room.” We had some great entries for country repairer and the standard is clearly climbing. Ken Morely Smash didn’t just win because of their incredible staff facilities. The whole presentation of the business is contemporary, sharp and state of the art. They even have a shell in reception showing the different types of construction material used in cars. Pat demonstrated strong links with the community, a rigorous customer satisfaction and quality checking process and optimum workflow. Ken Morely is proud of its facility and justifiably so, it’s a corker.
RIGHT: Paul Smith from 1Q1 with Steven Hutchinson of Norton St Gobain (right). BELOW: Scott Stephens receives his Rising Star award from Richard Dudley of MTAA.
RISING STAR SCOTT STEPHENS SMASHTEC Stephens’ story is well told in his video entry. To have two large inner city shops by the age of 34 is impressive enough but it’s the business strategy and logistal expertise that contributed to the win. Stephens has a thoroughly 21st Century attitude towards autobody repair. He has a partnership approach to both work providers and suppliers. Monza Smash Repairs carries out the heavy hits and out of scope work that SmashTec isn’t geared to repair. Both businesses are in the same Marrickville Street and between them can repair 130 cars per week. Despite the high volume Stephens has created an excellent staff culture and the whole atmposhere is one of calm productivity. SmashTec has two compressors to ensure there’s no down time if one fails - if that’s not an impressive ‘belt and braces’ attitude we don’t know what is.
INNOVATION AWARD 1Q1 The fact that a number of this year’s winners use 1Q1 and quite frankly rave about it says a lot about this workshop productivity program. Developed by father and son repairers Paul and Lauchlan Smith from Midland Smash Repairs in Perth, this system has made a hugely positive impact on production and profitability to early customers. Anything that gives repairers an edge is a boon but the simplicity and visibility of 1Q1 also helps to empower staff and create a true team atmosphere as every stage of every job can be accessed at a glance. www.paintandpanel.com.au
BODYSHOP FLOW MANAGEMENT
Innovation Award Winner Paint & Panel Bodyshop Awards 2017
Better efficiency, productivity, margins and profits
visit www.oneqone.com
2017 PAINT & PANEL BODYSHOP AWARDS 2
GRINS FROM WINS There were miles of smiles at the awards presentation evening. Well done to all of our winners and thank you to everyone to came to applaud them. 1
3
4
7 1&2. The Establishment in Sydney was a great venue for the event. 3. Jimmy Vais from Capital S.M,A.R,T 4. S.M.A.R.T crew with Nancy Lane of Axalta in the centre. 5. Bennett Elder crew from left: Amy and Wayne Cousins, Queli De Marchi and Scott Elder 6. From left: Adam Cusheri, Compass Claims; Tony, Bill and Dominic Mazzeo and Sam Street. 7. Neil Powell. 40 PAINT&PANEL November / December 2017
6
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2017 PAINT & PANEL BODYSHOP AWARDS
9
8
15
10 14
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12 8. Magic shennanigans. 9. Winner’s trophies. 10. Phillip Cox, Eva and Anthony Arnold, Denise Anderson. 11 Great magic show. 12. Compass Claims’ Nikki Porter, Kath Westren, Dave Beardmore. 13 The Zito clan from J&M Smash Repairs. 14. A rare shot of the P&P team from left: Max Yaffa, Helen Davies, Sam Street, Josh McDonnell. 15. From left Robert and Cheryl Borsak, Darren Myers, Jack Gabriel and Belinda Kelly from Len Hollis.
42 PAINT&PANEL November / December 2017
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Smart! Smarter!
S.M.A.R.T - est!! —
Suncorp is proud to congratulate our repair partner Capital S.M.A.R.T, Jim Vais and his team for winning the inaugural 2017 Paint & Panel MSO Award.
Capital S.M.A.R.T is constantly setting new standards in repair timeliness, quality, work place safety, employment standards, and clean and sustainable working environments. They have an extraordinary passion for innovation and lead the industry in customer satisfaction. With 42 repair locations in Australia and New Zealand and 170,000 customers every year and growing, this award is fantastic independent recognition of this Collision Repair Industry leader. To find out how you could be a part of this award winning business go to https://www.capitalsmart.com.au/our-team/smarter-for-you/
BEST PRACTICE
SETTING OBJECTIVES Setting objectives is crucial to any business says FixAuto World’s operations manager, Nick Spiers.
All opportunities will depend on several variables, some will be within the control of the business and some will not. Business owners (or managers) can influence the effectiveness of the staff, workshop’s efficiency and attitudes but they will not have any control over the price of new vehicle parts or the technology in new vehicles they will be repairing. Also, the economic conditions in which they operate will not always be under their control. Business owners and managers must also bear in mind what resources will be available to them. Are the current staff capable of carrying out the ambitious objectives? Is there enough financial backing? Is the property capable of the objectives? Nine times out of 10 the reason for failing to achieve objectives is because we were unrealistic when setting them, or because we don’t work as effectively as we should. All businesses normally consist of a collection of individuals. We are only human and we all make mistakes. Sometimes perhaps we are too ambitious, too timid or maybe it’s just a case that there are other things on your mind apart from work. A key point to remember is that no matter how perfectly people perform inside the business, conditions outside the business can change and this DETAILED OBJECTIVES NEED to be set out will make it more difficult for the business to achieve the set precisely and clearly but also worked out on objectives. Tax rates, consolidation or the general economy are a timescale. Best practice is to set the all major contributing factors that can be classed as conditions following time frames for your objectives: outside of the business that will affect meeting the objectives. • Long Term – Anything over five years Just because there are difficulties does not mean that • Medium Term – Two to five years business owners and managers should not be setting objectives, • Short Term – Less than two years but is does mean that objectives should be regularly reviewed to The further away the objective, then the consider the business performance and the uncontrollable, like more difficult it is to set out the details of the objective. Long the changes in the economy. term objectives are ambitious or sometimes aspirations, rather Although the business owners normally set overall objectives, than precise expectations. However, all businesses should set these should be explained from the top down – from the owner to long term objectives as best practices. An example of this might the apprentice. The effects of a be “to be the largest bodyshop in town, within change in objective are felt all the the next 10 years”. way the down the line. An example Short term objectives should always be set “Are the current staff of that could be to increase the a lot more easily and all businesses must be capable of carrying out the workshop efficiency by 20 per cent able to realistically achieve these. An ambitious objectives? Is over the next two years. By doing example of a short-term objective might be this it will affect the workflow, “to increase my weekly throughput of there enough financial potentially new equipment, training repaired vehicles from 30 to 40 within the backing? Is the property requirements and possibly new next year”. capable of the objectives?” incentives? Because these will have Medium term objectives are all the other all stemmed from the original objectives in between these two. objective set, they need to be When a business owner sits down to set the planned in detail to allow the objective to be reached. objectives they should use three things to influence their decision All objectives should be set at two levels – the principal when setting the objectives and the period. objectives for the whole business and the secondary 1. What opportunities is the business likely to encounter in the future objectives of each individual department. The objectives of 2. The company mission statement each department must be planned so that the efforts of every 3. What resources will be available to you in terms of money, part of the business are directed towards achieving the people, and products 44 PAINT&PANEL November / December 2017
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BEST PRACTICE
overall objective. Another key point and proven best practice is to set objectives not just for departments but also for individuals that will ultimately help you achieve the overall objective. Management by objectives is a method of control which measures individual performance against individual objectives. These can be applied to anyone in any organisation. A best practice to start this would be to ask your employees two questions. What do they do in their job? And why do they do it? This may sound simple but it is very effective as it enables people to focus on the real priorities of their work which are quite often lost in the busy day to day pressures. You can then set objectives individually by a process of consultation. There are three levels to this: 1. There should always be a high degree of job satisfaction 2. They must be highly motivated to achieve the objectives 3. Individual goals must be aligned with the business goals So, once you have set your overall objectives and your individual objectives, the following procedure takes place: 1. All managers should agree the set of objectives and targets to be achieved. They must be realistic but at the same time challenging. 2. The day to day manager should be the one that plans how the targets can be achieved.
3. There must always be an agreed process for evaluating and reviewing actual performance against actual targets and allowing for modifications to objectives, plans and targets if necessary. A key point is that management by objectives will not work if it is imposed from above. It should always focus on participation and consultation of the team. Although setting clear objectives is crucial it must also be recognised that at times managers might still achieve the objective by working inefficiently. This will need to be understood to help you support the staff operating in this way. The reason for this is because management by objectives will fail to deal with conflicts between the objectives of the business and the individual. Just because the business owner wants everyone to work towards the same goal does not always make it happen. This is when you must put your leadership and coaching skills to the test.
Fix Auto’s core values: Entrepreneurial spirit, ethics, continuous improvement and customer commitment. To find out more about Fix Auto Australia contact Terry Feehan on 0455 345 055.
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November / December 2017 PAINT&PANEL 45
NEXT GENERATION
IT’S A FAMILY AFFAIR Josh McDonnell spoke with the husband and wife team, Simon and Christie Leven, owners of Leven Smash Repair in both Dubbo and Mudgee, about the businesses’ history, challenges and triumphs.
HOW DID THE BUSINESS GET STARTED? WHAT IS THE STORY BEHIND IT?
“Investing in my education will never end, it is now in my DNA. This is how I stay ahead of the industry and the competition. “Forever learning, growing, educating the team and those around me, while adding as much value to the community as we can.”
LSR MUDGEE BUSINESS was established 37 years ago by Ian Leven. In 2001, Ian’s son, Simon, came into the business after finishing school and travelling abroad. Giving up a career in music, he went completely left field and started as a panel HOW DO YOU RUN THE TWO BUSINESSES? beater apprentice finishing his trade in 2005. While Simon had Simon is the sole director of both smash repair companies. a music background he also loves cars and working on them. He overlooks both businesses with the help of the CFO/brand In 2008, Ian, after being in business for over 30 years, was manager, Naomi Sheehan. The Mudgee branch is run eager to retire. Simon was 24 at this time and wanted to stay predominately by Ian Nobbs and Simon’s wife Christie Leven. in the industry because of his love for the work. He offered to The Dubbo branch is run by Frik Minni and Travis Harte buy the family business. Within the next 12 months and convinced his WHAT WERE THE CHALLENGES father he could take it on. “The Mudgee business IN THE EARLY DAYS OF THE NEW Putting it all on the line (including the DUBBO BUSINESS? is much more refined couple’s house) in July 2009, Simon The biggest challenge in the Dubbo acquisition was simply because it was purchased the family business at just 25 getting used to the work volume that came with years old. Both his parents stepped out of the new insurer contracts while setting up the the main focus for the business and retired with no further business, new equipment and building a team. seven years.” input or contribution. “Getting the team to ‘buy in’ was originally a At first Simon didn’t like it, but later challenge and we lost 80 per cent of the staff in he was glad he did it on his own because he built the business the first nine months,” Simon said. “Thinking back on it now it with a strong vision in mind – to be the best regional repairer was like giving the new business a big old colonic and opened up in Australia – and educated himself about business with an opportunity to go and look for a bunch of new highly skilled anything he could get his hands on. team members with great attitudes locally from Dubbo and from Simon laughs as he mentions that he has spent well all around the world.” over six figures on his own education in the last four Simon’s first and foremost goal was to hire locally then look years alone and is still going. further afield and do whatever he needed to do to find the 46 PAINT&PANEL November / December 2017
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NEXT GENERATION
right team who are invested personally in the company’s vision and future. “Building the team is the singular biggest challenge of all, but also the most rewarding if you get it right. Somehow over the last 12 months we doubled the original team size in the process,” he says.
HOW ARE YOU FUNDING THE OPERATION? The second LSR shop was the largest in Dubbo. He purchased it with banking funds and operating profits from the Mudgee shop. Dubbo had been on Simon’s radar for years. “Many work providers saw value in what the LSR Mudgee shop represented in the industry and often asked if me if I planned to expand into other locations.” The move to Dubbo was a no-brainer and an opportunity not to be missed. It is just over an hour drive from the Mudgee shop with a population of around 55,000. It is close enough to be able to oversee and commute to.
WHAT ARE SOME OF THE BENEFITS OF BEING A COUNTRY REPAIRER? “The connection with the team and community is on a more personal level. In a high pressure fast-paced industry at least when you leave work you can wind down without the hustle and bustle of traffic and city congestion. Five minutes out of both Mudgee or Dubbo and its either rolling hills or large fields with crops or stock and plenty of clear blue skies. You don’t get that in the city.”
WHERE ARE YOU TAKING THE BUSINESS IN THE NEXT 12 MONTHS? “LSR Dubbo is looking to grow further in the next 12 months, with new premises due to start construction very soon. This will allow more growth. We are currently at capacity in our current location,” Simon says. “During this 12 months we look forward to training our team and graduating them into new roles, along with strengthening our relationship with the community and work providers. Our new shop will have a capacity to repair 70-80 cars a week.” There are a total number of 38 employees across both businesses with 19 in Dubbo and 19 in Mudgee. The group also has a mechanical shop Simon started with a partner, Dean Sebelic, in 2013. It currently employs five. “As a total, we employ 43 legends,” Simon says proudly.
WHAT CELEBRATIONS HAVE YOU GOT PLANNED FOR THE ANNIVERSARY? While it was great to acknowledge the first anniversary of the Dubbo shop, Simon said that victory laps aren’t in order yet. “We have lots of hard work yet to come. With the new facility build just about to kick off and proposed to be competed by June 2018. There will be plenty of celebrating then as it will also mark our second year anniversary.
Simon won Entrepreneur Business School- Best Client results for a business over $1 million turnover.
WHAT ARE THE CHALLENGES OF BEING A COUNTRY REPAIRER? “There are plenty but it’s all relative. Metro areas have challenges that we don’t face and vice versa. The biggest challenge in operations is parts. Our Dubbo branch has two full time part staff. The volume of damaged parts and logistical complications around freight is 75 per cent of any production loss and inefficiencies.” The sheer volume of parts and high cost of repair has led Simon to consider setting up his own freight services to mitigate the problems. “Other challenges I’m sure everyone has – finding the right team and maintaining profitability and so on,” Simon explains. www.paintandpanel.com.au
November / December 2017 PAINT&PANEL 47
SUPPLEMENTARY
THE ADAS EFFECT Finance guru Brad Mewes of Supp-co. com looks at the impact of ADAS on the collision and aftermarket industry. RECENTLY, I HAVE had multiple conversations with a number of very intelligent people about ADAS – Advanced Driver Assistance Systems, and the impact the automotive aftermarket industry. While opinions have varied, one thing is certain – the role of technology in the automotive aftermarket is only increasing. Some are very concerned about the impact of ADAS on the automotive aftermarket, and others appear ambivalent about the technology.
THE CONSULTANTS Recently, KPMG released a report that spelled out a rather gloomy future for companies that operate in the collision repair segment, including OEMs, parts distributors, paint distributors, and collision repairers, suggesting that the industry could see as much as 75 percent decrease in parts replacement business as a result of autonomous vehicle technology. My friend and colleague James Carter, Principal Consultant at Vision Mobility sees a similar dreary future for the industry. In a recent report titled Who Stole My Company he states “As the convergence of new technologies into a “CASE” platform (Connected, Autonomous, Shared, Electric) occurs, people will be able to access their mobility cheaply through pay as you go systems.” James is very active in the mobility space, and sees autonomous technology and ADAS having a significant impact on industry profitability as well. He believes we are on the cusp of a major shift in how consumer purchase, service and use automobiles. “As the popularity of such autonomous car sharing services grow, many current industries and businesses associated with automotive and car ownership will begin to dwindle and finally fail.”
THE REPAIRERS AND SUPPLIERS The repairs and the suppliers to the repairers I interface with 48 PAINT&PANEL November / December 2017
generally have taken a “wait and see” approach regarding the impact of ADAS on the automotive aftermarket. When I attended NACE Automechanika in Chicago generally speaking, few participants were focused on the potential negative impact ADAS could have on the industry. Technology was in the spotlight, however, repairers and suppliers focused on the impact of new vehicle construction methodologies, the impact of lightweight metals and materials on vehicles, and the increasing role of OEMs in dictating repair methodology. ADAS was mentioned, but in passing, and generally in relation to the importance of diagnosing and calibrating systems pre and post repair.
THE INVESTORS The investors I have spoken with appear to be most concerned about the impact of ADAS on the automotive aftermarket. While these investors see a risk from ADAS, some also see opportunity, and generally they take a very nuanced approach to the technology. Many are keenly attuned to current and projected severity and frequency rates, and see little cause for concern in the near to medium term. Others consider historical vehicle scrappage rates have trended below historical averages over the past 5 years. Additionally, some investors I spoke with, while bullish on the technology, recognise technology comes at a cost that not all consumers are willing to incur immediately.
CONCLUSION One thing is unanimous – autonomous technology and ADAS will impact the automotive aftermarket. I do find it interesting that the businesses that potentially face the greatest impact as a result of ADAS – repairers, suppliers, and distributors – seem to be discussing it the least. However, based on current and historical data, including frequency and severity, and future trends, including trends in scrappage rates and adoption of new technologies, the impact of ADAS on the automotive aftermarket is likely years, and possibly decades out. www.paintandpanel.com.au
ADVERTISING FEATURE
CAR-CRAFT TOTAL HAIL SOLUTIONS Since its inception in 1987 the Car Craft Group has been a progressive company, always looking for the opportunities to service not only its clients but work providers as well. BUILT ON THE back of a strong independent mindset, the group has now established itself as the largest network of its kind in Australia with over 95 family-owned and operated collision repair facilities. Over three years ago Car Craft Queensland realised that the landscape of the hail repair industry was changing dramatically. They knew that they needed to make some drastic changes to the core business in order for their members to continue to be a part of hail repair opportunities when an event happened in Queensland. As hail storms become an ever increasing part of our climate, and the severity of these events has a greater impact and causes widespread damage in many cases, Car Craft now offers a total solution for all hail damage repairs. As a hail event can cause two “Highly efficient levels of damage, Car Craft has the ability to provide both PDR processes have been and a degree of conventional repair are quoted to be (paintless dent repair) and developed. The vehicles repaired using conventional methods. The customer conventional repair methods to are triaged and quoted drops their car off at the PDR facility. All repairs are ensure that no matter what repair co-ordinated and completed before the car is collected is required it will be carried out by the highly trained by the customer. This takes the stress and worry out in accordance with current PDR technicians.” of what can be a confusing situation. industry practices. The past events Car Craft Total Hail Solutions have Insurance companies want hail managed has seen a single point of contact for all repairs to be carried out with a single point of contact for their communication pertaining to the repair process: customers. Some insurance companies now ensure their hail repair companies have mobile booths that are set up each time • A fully transparent and equitable fixed pricing model there is a major event. Others have put the onus on the hail for PDR repairs companies to arrange and co-ordinate the conventional repairs • A guarantee of professional repairs and administration from start to finish. • A smooth transition of vehicles through the process This is where Car Craft saw that its existing network of • Customers’ vehicles returned completed, detailed and established body repair shops with expert, fully trained and quality inspected qualified panel and paint technicians could be complimented • An open and accountable system by adding an experienced team of PDR technicians. Car Craft Total Hail Solutions will not jeopardise quality for Car Craft Total Hail Solutions (CCTHS) was established to give a deadline. insurers one point of contact to gain access to the full suite of The team are experts in their field and have over 50 years autobody repair services available through the Car Craft network. combined experience in PDR. This coupled with access to over 95 The 2016/17 storm season was the first opportunity for CCTHS businesses in the Car Craft network across Australia means the to work alongside Car Craft shareholders in repairing over 600 team are confident of being able to help with any event in country. hail damaged vehicles in Adelaide. With strong alliances with most insurance companies Car Craft CCTHS also repaired a large volume of vehicles in the Wollongong, Total Hail Solutions are only a phone call away. NSW region, 98% of which were repaired with PDR expertise. Car Craft shareholders are required to follow a strict code of CAR CRAFT TOTAL HAIL SOLUTIONS conduct and this code of conduct has been applied to the hail More information from: repair side of the business as well. Ben Chesterfield 0499 697035 Uber efficient processes have been developed. The vehicles are Carl Skilllern 0418 796378 triaged and quoted by the highly trained PDR technicians. Dave McCallum 0411 517820 CCTHS will only quote to repair panels that can be fully repaired using the PDR method. Panels that will require paint 50 PAINT&PANEL November / December 2017
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IBIS REPORT USA Here are the key facts of the last IBIS report from Auto Body Repair Network based in California only the preferred method to learn repair procedures, in many CHALLENGES REMAIN MUCH of what they have been the last several cases it’s a required part of joining manufacturer certified decades. With labour prices largely controlled by insurers (and well training programs that too are growing in popularity. below that made for mechanical repairs), shops struggle to remain With more parts utilising sensors and computer networks, profitable. To survive, shops most adopt operational models that cut manufacturer assistance is increasingly needed to calibrate or waste and improve effciency and productivity in order to create as flash parts to get them to work. This work often can only be much revenue as possible. Shops also must market themselves in performed at dealer shops since independent repairers currently ways that bring in steady streams of business. are not given access to this repair technology. This frequently means having to join insurer Direct Repair Programs (DRPs) since insurers recommend DRP shops to their customers. Joining a DRP has some negative points since shops must EMERGING TRENDS agree to insurer program rules, which++ can mean turning more The largest consolidators continue to look for ways to expand repair decisions over to insurers and providing more work at a nationwide. Their growth, in part, has helped fuel the increase in discount. Cost layouts for upgrades in the number of US shops. For nearly two tools, equipment and training remain decades, the number of shops has declined, “The number of MSO significant. With new vehicle technologies but this past year saw noticeable growth. locations continues to grow. and materials demanding greater This growth points to the relative health of Larger MSOs have turned equipment and training investments, the US repair market. shops are pressed to find ways to create as Some experts predict that eventually a their attention to buying up much revenue as possible. number of shops will no longer be able to smaller MSOs as opposed to This has led to the growth of multi-site afford to fix a wide range of vehicle standalone shops.” operations (MSOs) who can better models but instead will need to focus on leverage their profits to pay for the specific brands or specific types of repairs. investments needed to remain in the collision repair business. The growth in MSOs also, in many INSURER INFLUENCE cases, is creating more competition for standalone shops and Insurers maintain substantial control over the US repair market. smaller MSOs who must constantly look for new ways to squeeze The vast majority of repairs are insurer-paid. Insurers essentially more revenue from their operations. dictate labour rates, part-sourcing choices and repair procedures. This degree of control has created significant friction between insurers and repairers for decades, especially in the area of MARKET TRENDS labour rates, which have remained relatively stagnant for years. The number of MSO locations continues to grow. Larger MSOs As for supply chains, insurers prefer that shops use aftermarket have turned their attention to buying up smaller MSOs as and salvage parts as much as parts since these products also opposed to standalone shops. hold down repair costs. Repairers frequently prefer manufacturer The other major trend is the increase in manufacturer parts and also, in some cases, question the use of salvage parts involvement. As vehicle technology has increased in complexity, if locating and accessing them adds days to repair cycle time. with each model year, manufacturer training has become more important. In past years, simply having access to manufacturer repair procedures was a challenge for many shops. Today, that VEHICLE MANUFACTURER INVOLVEMENT access is much better (though expensive), but shops have begun Manufacturers are increasingly adopting certified repair placing a premium on manufacturer training. programs or networks. These programs demand member shops to Training organisations like I-CAR now incorporate more invest in required training and equipment to work on newer manufacturer training in their offerings. This training is not model vehicles. In some cases, manufacturers will only sell
52 PAINT&PANEL November Month / Month / December 2000 2017
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IBIS WORLD
structural parts for specific vehicles to program shops. Manufacturers, particularly of luxury vehicles, often limit membership in these programs to allow shops to offset the sometimes significant investment in tools, equipment and training by giving them specific repair markets where they won’t see competition for this work. With the increasing use of aluminium and alternative materials, becoming manufacturer-certified is becoming increasingly popular with shops, particularly MSOs, who pick up multiple manufacturer certifications. Many industry leaders see certification as one of the most important market trends. Manufacturers also are becoming more involved in the area of pre- and post-repair scans posting position statements recommending shops run full pre- and post-repair scans to ensure sensors are working properly. Unfortunately, some shops struggle to afford the scanning tools necessary to diagnose and calibrate this work. Scanning/ calibration tools can vary widely between manufacturers and some aren’t available in more affordable aftermarket versions. This can mean sending a vehicle to a dealer shop for this service, which adds extra costs and time to a repair.
STANDARDS Insurers typically set standards as part of their direct repair programs (DRPs). Manufacturers do as well for repair certification programs. They are monitored through audits conducted by insurers and manufacturers. Shops also set their own standards, which they manage. There are no national standards set by the US Federal Government. As noted earlier, newer technology is demanding greater investments in tools, equipment and training and is forcing repairers to form closer ties to manufacturers.
NEXT GENERATION MARKET? Collision repairers face significant challenges in helping create the next generation of skilled workers. For one, young industry members often are turned off by the physical nature of collision repair. Working on the mechanical side – which often involves more computer-based tools and procedures – frequently is more enticing. Also, considering the cost of collision repair equipment, many vocational/technical school students don’t get real-world experience during their education. They typically don’t spend time working in an actual repair business and leave school without any knowledge of what a collision repair career offers. Some shops have responded with their own mentoring programs, where they either provide all training in-house or compliment school-based instructions. Many have reached out to armed service members returning to civilian life.
TRENDS THAT WILL IMPACT THE SECTOR? Shops will need to continue to work more closely with manufacturers. The biggest areas of concern will be the continued growth and stability of the US economy. When the economy ‘crashed’ in 2007-2008, repairers saw significantly decreased business. With a new presidential administration in Washington, DC, repairers will keep a close eye on national economic trends. Other areas of concern are the decreasing popularity in vehicle ownership among young people. In 2014, 24.5 pe cent of 16-year-olds had a license. These numbers could have significant repercussions in the collision market over the next five years. www.paintandpanel.com.au
FACTS & FIGURES Population: 325 million (Worldometers 2017) GDP: $16.77trn (World Bank 2017) Number of people with full driving licence: 214 million (Statistica 2014) Total vehicle parc: 254 million (Bureau of Transportation Statistics 2012) Average vehicle age: 11.5 years (IHS Markit 2016) Total new road vehicle sales: 2014 – 16.5 million (AutoData, January 2015) 2015 – 17.4 million (AutoData, January 2016) 2016 – 18.4 million (AutoData, January 2017) Number of collision repairs per annum: 13.8 million (2014 Romans Group) Number of vehicle write-offs per annum: 2.9 million (2014 Romans Group) Number of motor insurers: 199 (2012 CarInsurance.com) Top three motor insurers by number of vehicles insured: 1 – State Farm 2 - GEICO 3 – Allstate (From Mitchell International, 2016) Average motor insurance premium and excess/deductible: $907.38 and $500 (Quadrant Information Services 2014) Annual cost of motor insurance fraud: $6-7bn (CCC 2013) Insurance approved collision repair networks in operation: Yes Insurance owned collision centres in operation: No Vehicle manufacturer approved collision networks in operation: Yes Vehicle manufacturer owned collision networks in operation: No Accident management companies active within market: No Accident management company approved collision repair networks in operation: No Total number of collision repair operators (all body repair facilities/types): 40,962 (US Bureau of Labor Statistics, 2016) Number of collision repair centres: 17,200
TYPES OF COLLISION REPAIR CENTRES: Independents: Yes Dealer: Yes Networks: Yes Group/multi-site operators (MSO): Yes Franchise operators: Yes
LARGEST OPERATORS BY NUMBER OF SITES: 1. Boyd Group 2. Caliber 3. Service King (Automotive Body Repair Network, 2016) Average cost of repair: $3,072 Average cycle time of repair (key-to-key): 11.9 days Average labour rate: $46.12 (CCC 2014) Mobile SMART repairers in operation : Yes Total accident repair market value: $32.3bn (The Romans Group 2015) November / December 2017 PAINT&PANEL 53
FEATURE
AXALTA HELPS SMASHTEC SMASH THE NUMBERS Axalta services has helped Scott Stephens to transition staff from repairer roles into management.
MAIN: The paint mixing room at SmashTec. RIGHT: Scott Stephens owner of SmashTec and Monza Smash Repairs in Marrickville, Sydney. 54 PAINT&PANEL November / December 2017
AXALTA SERVICES, A division of Axalta Coating Systems, is designed to ensure the company’s relationship with its customers extends beyond products and colour technology, helping them to achieve success by optimising their efficiency, productivity and sustainability. The program’s services include personalised consulting and coaching, training courses on best practice procedures using LEAN and pre-LEAN concepts, industry networking opportunities, and access to marketing and managing tools. SmashTec owner Scott Stephens has been a long time user of the service and says the evolution of the service has greatly assisted his business. “What I’ve been working on with Axalta is how we do it on the floor right through to the office. Looking at the whole big picture, rather than just the paint. “We’ve got them working in the paint shop with how the processes work.” Stephens says the service has helped develop programs and processes for transitioning employees from repairer roles into office and management. “What I had been finding is that middle management in the smash repair trade was missing. A guy comes off the floor and there is a big gap between the office and the floor. “The Axalta programs start to develop their brain a bit more to help them think more about the business than just, ‘I’ve done three jobs for the day I’ve had enough’. “When they move from the floor to the office you’ve got to start to develop the mentality that the dollars and cents count, otherwise we’re all gone.” The service was also utilised by Stephens and his team when setting up his latest shop, SmashTec. He says Axalta consultant Robin Taylor gave him the opportunity to see other shops and workspaces to get a better idea for layout and workflow structure. “Axalta helped with the layout of SmashTec and helped set it up for flow, plus they also gave me the opportunity to speak to other panel shop owners that had already set up large facilities and visit them to see it all work. “That gave us the knowledge to be able to set it up right. Because you can see when you go to other shops, you can see congestion spots. Taylor and the Axalta team also provide assistance with ensuring day-to-day operations are kept to a high standard, with minimum wastage in both productivity and paint. “If they are going through the finances and they can see an issue with the way the amount of consumables the panel shop is using, well that’s an important factor that we need to start working on. “The same if they see we are spending to much on paint. We ask is there a process issue in the paint shop that we need to hone in on? “I worked closely with Robin because there are a lot of criteria and things that we have to pass these days, like being as ‘green’ as we can and I-Car training. So having someone who can help you put those documents together as well is a huge help,” Stephens says. www.paintandpanel.com.au
FEATURE
decision, and to perform the task in the desired way so that no job is forgotten and there are no interruptions to the flow.
1Q1 THE EYE OPENER 1Q1’S PRIMARY FOCUS is flow management, and it does it well. If you were to describe 1Q1 in one word it would be visibility. 1Q1 opens your eyes to the status of jobs, the bottlenecks in your business and the areas that are overloaded, enabling all staff to make the correct decisions that will optimise the flow of work. 1Q1 has been built to be flexible enough to cater for different shops styles, but rigid enough to lock staff and jobs into a process, increasing productivity and efficiency as a result. The key difference with 1Q1 is that it is a task based system rather than a job based system. Most software products in our industry are job based systems where you search for a job number and can only see and work on one job at a time. 1Q1’s task-based status screens display the live data required to make the correct
1Q1 will get your business flowing by: • Locking staff and jobs into a process. • Creating an even flow into and out of your business by giving visibility on bookings. • Automating the prioritization of work at each stage. • Giving visibility on the progress of jobs. • Automating communication of status to customers. • Communicating, tracking and enforcing a quality standard. • Removing the communication barrier between the office and the workshop. • Setting and tracking overall turnover targets, weekly booking targets and performance targets for production staff. • Providing staff with a sense of achievement seeing what has been completed and motivating them to meet the targets set. • Providing staff with a simple and highly visual system that they can easily engage with to give you the data you need. Production managers will gravitate to 1Q1 as it will do the heavy lifting for them. 1Q1 gives great insight into a business, providing owners and managers with visibility on average cost, bookings, production, quality, status, staff performance and load in various departments within the business. Once you have this visibility of 1Q1 you will wonder how you managed without it. 1Q1 is the tool to help your business systematically process jobs to its greatest capacity with maximised profits. More information at www.oneqone.com
Structural Repair Etch Primers The fast, convenient way to achieve a professional finish on structural repair jobs.
PPG’s ground-breaking new range of aerosol Structural Repair Etch Primers are all about convenience. Returning a structural repair to the original ‘factory’ appearance is now as simple as choosing the appropriate colour to suit the job, giving the can a shake and spraying the required area.
Contact your PPG representative or the customer service hotline 13 24 24 (Aust) or 0800 320 320 (NZ) for more information. www.paintandpanel.com.au
November / December 2017 PAINT&PANEL 55
FEATURE
COLORVATION REVOLUTION AT GINO’S PANEL AND PAINT Gino’s Panel and Paint in Perth is a high output repair facility which switched to Sikkens and began using its digital colour retrieval system, Colorvation, about a year ago.
SECOND GENERATION OWNER Aaron Scagliotta told Paint & Panel how using the system has radically improved workflow and had a beneficial culture change in the paint shop. While the primary reason Scagliotta moved to AkzoNobel was its A-Coat program, when it was suggested that Gino’s dived straight into using Colorvation he readily agreed. “It appealed to me because I thought we can go straight to the latest technology,” he said. Scagliotta says that Colorvation is quite simply foolproof: “It’s a standardised process that they follow. They go to the vehicle, they go through a set of polishing steps, then they press a button. They mix, they do a spray out card and then if its not an exact match they use the spectro again for the spray out. This process has meant that Ginos has built up its own colour library, “The computer will tell the painters that we already have a spray out, they can take the card over to the car and say ‘yeah that’s perfect’ and off they go. As the library develops the colour matching process becomes even faster. “Because its such a standard procedure it’s taken a lot of the skill out of colour matching which means even the apprentices can match successfully - it gives them the confidence to know that it works. The mantra here is that if you follow the steps you can’t go wrong. And that’s a true reflection of what I see in the workshop – I’m not repainting cars because the colour is wrong. They’re going through once and properly and its allowing for better procedures that filter through the whole repair process. “When the vehicle lands in the shop, quite often I’ll see the apprentices going up to the car in the panel stage and matching the colour so that everything is prepared and ready to go when it arrives in the paint shop, so the work flows quicker. So has using Colourvation really impacted on workflow? “Dramatically,” Scagliotta said. “It’s halved rework to do with 56 PAINT&PANEL November / December 2017
MAIN: Aaron Scagliotta of Gino’s Panel & Paint; RIGHT: Colorvation in action.
colour matching. It has also created an environment where, if you follow the steps and there’s an issue then you just follow another procedure to resolve it. “Is my volume increasing? Let’s put it this way, a year ago I had exactly the same amount of work and I couldn’t get through it, now I’m running out. “That is because of a combination of factors – the A-Coat learnings, using Colorvation and also the 1Q1 workflow management system.
CULTURE CHANGE “Now my painters are working as a team. It’s not like before where one guy has one job and he works through it till the end. Now one will be doing the prep work, one the colour matching and one the painting. Colorvation has given them the confidence to trust each other – they know that’s it’s not a person’s opinion about colour it’s about fact.
THE TRANSITION Scagliotta says the transition to Colorvation was seamless. “Big kudos to AkzoNobel, they sent a whole team of technical sales reps from all over Australia to help us with the transition for a week. They educated the team and held their hand through the process and it was really smooth. It was out with the old and in with the new. They guaranteed me no decrease in throughput during the transition and they were right.” www.paintandpanel.com.au
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FEATURE
For over a year the AkzoNobel research and development has been testing and field trialling the latest generation of UVA cured coatings with leading edge UVA LED curing technology supplier TeslaCure.
AKZONOBEL AND TESLACURE TURBOCHARGE PAINTING THE RESULTS? NOW you can spray your primer, cure it and then sand it within 30 seconds, when you use a combination of Sikkens Autosurfacer UV Primer with the TeslaCure UVA LED R100 cordless curing lamp. The need for speed, efficiency and low energy consumption are all crucial aspects of any process driven bodyshop business focussing on Rapid Repairs. To keep ahead of the competition and continually improve, you must always strive to reduce your process times, increase throughput and earn more profits without necessarily needing to hire more staff. This is exactly where AkzoNobel UVA cured coatings and TeslaCure are leading the way into the future of high speed rapid vehicle repairs.
INDUSTRY LEADING PRODUCT
VEHICLE REPAIRS AT THE SPEED OF LIGHT
The steps involved in repairing a vehicle should be broken down into each process even if you think that process is simple. Each process needs to be given an average process time. The only hard one to estimate is a structural repair time, but every other process should have a set average process completion time. The first step is to measure your average process times, then to improve on them; if you can save five minutes per process on every vehicle, then this would reduce your repair time by more than one hour per vehicle . Managing your process time is achieved by: • Measuring, monitoring and improving process times • Teamwork under effective management, rather than individuals working on cars • Managing your bay space, as your bay space equals dollars. Move cars in and out as fast • Using only the best products and technology available to achieve the fastest possible times. If you manage your process times this will allow you to control workflow at a very predictable rate . For more information call : (03) 9644 1711 or e-mail: ekaterina.gridina@akzonobel.com.
The days of using heat to cure refinish coatings may be coming to an end. Heat uses a lot of energy and energy is expensive. Most mobile infrared curing units use 6000-9000 watts of electrical energy, a spraybooth running on gas and electricity may also be a thing of the past in the not to distance future. TeslaCure LED UVA curing technology uses only light to cure UV primer in 30 seconds, the panel and UV primer is cured cold and the running cost per year is only $3.95, which is less than most cups of coffee. The days of air dry products are also disappearing as these types of products create bottlenecks and that is the last thing you need in today’s high production bodyshops focussing on rapid repairs. Conventional UV mercury lamps are slow, they require a warm up time of three minutes and you have to replace the globes every 500 hours, they run at high temperatures and use high wattage. TeslaCure’s UVA LED R100 is a major breakthrough in UV curing technology, the lamp life is 20,000 hours so you will never need to replace a globe, they start curing instantly and run on only battery power. The unit is cordless and only needs charging at the end of each day. 58 PAINT&PANEL November / December 2017
AkzoNobel enables the world’s fastest curing process with the most advanced, industry leading UVA cured primer - Sikkens Autosurfacer UV. It delivers an unmatched performance for any spot to medium-sized repair. Sikkens Autosurfacer UV is a one component, ready to use filler with an unlimited pot life. It has good build, excellent sanding properties and is not sensitive for contour mapping. There is no wash primer required before application, drying times are extremely short and sanding is possible immediately after drying, saving you valuable time and energy while still achieving excellent results.
HOW TO CREATE PROFITS BY INTRODUCING TRUE EFFICIENCY INTO YOUR PROCESSES
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FEATURE
3M PPS SERIES 2.0 SPRAY CUP SYSTEM THE NEXT EVOLUTION of disposable paint cup systems is arriving in this November, 17 years after 3M invented the revolutionary 3M Paint Preparation System PPS. The 3M PPS Series 2.0 Spray Cup System has been reinvented from top to bottom to help painters work easier. With six critical improvements on the current offering, using PPS Series 2.0 speeds up the painting process to help with paint shop productivity. After spending thousands of hours watching painters work, key changes have been made to every component of PPS, whilst maintaining the most effective parts of the current offering. The collar is now built into the lid to avoid issues with cleanliness and to make assembly easier. There is a wider adapter spout with four-connection points to maximise stability of the system and make cleaning up quicker. The sealing plug also has a wider edge which means you can seal and protect coatings upside down, reducing the number of lids used as you can keep the filter wet between jobs. Finally, the new domed lid with full-faced filter has been proven to aid in a more consistent paint flow and reduce spitting from start to finish. The cup has changed too, with ratios printed on the outside to eliminate traditional mixing cups and an access window which allows for STX easier of the lid and the ability to check the NCR removal 185x127mm.pdf 1 20/10/17 8:58 am
paint level throughout the spray. There’s also now a new cup in every carton of PPS Series 2.0, as starting with a clean cup more often reduces the paint build up on the system and the chance of contaminating your paint job. Available in the same convenient sizes as the original and with new adaptors to suit any gun, PPS 2.0 Spray Series will help make painters better, more productive and more confident in the quality of their work. For further information call: 136 136.
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November / December 2017 PAINT&PANEL 59
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THE HAMMER OR THE ROCK? Insurance company influence, repairer consolidation and a shrinking pool of repair jobs have all come together to shape the local market over the past decade but where does that leave individual collision repairers? WITH THE NEED to accept change as part of their ongoing business operations, says Greg Tunks, PPG MVP Manager ANZ. For almost two decades, PPG’s region wide MVP team has worked with collision centre owners to provide close business support to help them adapt and prosper. According to Tunks, a recent roadshow of seminars has drawn large numbers of repairers and highlighted the fact that many are looking for answers and direction. Tunks points out that many repairers have been carrying out age-old practices that have become entrenched. In the past they could get away with inefficiencies but in today’s market climate it simply doesn’t cut it anymore. Repairers need to accept change and make changes, such as taking advantage of the latest tools, products and processes, in order to improve efficiency across the whole business. “To illustrate the point, we show a short video of a person hitting in a nail with a rock. Another person offers them a hammer but, even though it would be quicker and easier, they refuse because ‘this is the way I’ve always done it’. It gets a few giggles but it hits home because they realise it is reality.” Tunks said.
CONSOLIDATORS THE BAD GUYS? Consolidators are definitely an issue because a larger percentage of repair jobs are being directed to them. However, you can hardly blame the insurance companies for doing that. Insurers operate in a super- competitive market so they understand the need to be efficient and they want efficiency from the businesses they deal with. “People might complain about consolidators but the ones I have worked with don’t cut corners – they just use very efficient products and practices as a way to minimise their cost of repair. Some repairers have chosen to combat consolidation by doing it themselves – it gives them bargaining power to approach insurers and offer coverage of a given area at a certain rate,” Tunks said. Now even smaller insurance companies are now creating their own networks of repairers and directing work to them. It is narrowing the options. Independent repairers can look at other 60 PAINT&PANEL November / December 2017
options, such as sourcing work from fleets, vehicle OEMs, etc. but it is becoming more difficult. What is absolutely vital for every repairer is securing a reliable supply of work.
WHY NOT SIMPLY IMPROVE EFFICIENCY? “Unfortunately, a lot of owners don’t believe they need help. They think they are already working efficiently so, until you show them the figures to prove otherwise, they don’t believe they need to change,” Tunks said. “It is a sad fact that one of the MVP team’s biggest challenges is convincing people to take up the help which is available as part of the support package that comes with using PPG products. Quite often we don’t get called in until the business is in real trouble and the owner goes looking for help but it can be too late by that point. We would much prefer that collision centre owners recognised the signs that serious challenges are coming and that they need to prepare for them. “The solutions on offer have got more sophisticated but, in reality, the message hasn’t changed significantly over the years. There are still key things you need to do to be successful in business. The first is about understanding the numbers which drive your business. From there, you can start to implement changes to boost efficiency. Collision centres often have to provide a discounted rate to secure a reliable source of work and, if they do, the only way to maintain margin is to work more efficiently and do more volume so they need a means of doing that.
WHAT DOES MVP OFFER? As much or as little support as the owner wants. We recommend a top to bottom audit of the business, from which we produce an ‘Action Plan’ that details the improvements that need to be made. We realise that ‘lean’ and ‘5S’, can be daunting so we offer one-on-one mentoring. We also provide coaching on leadership and culture change within the business. The objective is to be able be remove all the hurdles and allow them to work as efficiently as possible. More information from PPG’s Customer Service hotline 13 24 24. www.paintandpanel.com.au
FEATURE
GET YOUR HEAD IN THE CLOUD FOXQUOTE 2017 CLOUD is Bruce Jones’ latest computer-quoting and body shop management system offering which complements his comprehensive family of optional cloud applications. Celebrating thirty years of rock-solid experience in the Australian collision repair industry, Jones prides himself and his FoxQUOTE suite of fast, accurate, dependable and easy-to-use applications, on quality one-on-one support and repairer training. “When you’ve been helping repairers with their I.T. needs as long as I have, you just get very good at it”, Jones says. “The Australian panel beater just doesn’t have the time to be mucking around with amateurs and junior players. Sometimes repairers need their I.T. problems fixed extremely quickly so they can back get on with the job. Australian repairers need a supplier who isn’t going to waste their precious time and money”. “The beauty of my FoxQUOTE is that it has been designed, developed and maintained 100% by only one programmer – me. It means my program is easier to maintain, faster, and more accurate than the rest,” Jones says. Moreover, FoxCLOUD has been up-andgoing and fully tested for well over twelve months. According to Jones, his FoxQUOTE Cloud customers, can login from any computer – anywhere - anytime. Customers can use PCs running Windows 7, 8 or 10 or, their Apple Macbook, IPad or even Iphone. Cloud computing is very popular these days because it means all a repairers’ precious quotes and invoice files are centralised. Subsequently, it’s easier for the repairer to access the information he needs from his workshop, home or
the car – or even when overseas. Jones’ FoxCLOUD service provider maintains all the hardware and operating system software so the repairer never needs to worry about computer hardware failure, operating system virus’, ransomware, trojans or any horrible security threats. The FoxCLOUD provider even performs those tedious, albeit essential, nightly backups as well. “I’m old fashioned,” Jones said. “I still request that my valued customers download an extra FoxQUOTE backup to their own, local machines from time to time - it’s better safe than sorry.” “With FoxQUOTE Cloud, or any cloudbased computer application, be it Facebook, Twitter, or Instagram, it’s only as good as your internet connection speed. There’s nothing worse than waiting for the screen to catch up, always lagging behind.” Jones continues, “From my experience, a repairer needs about five or six megabits per second (Mbps) download speed and, about one and half to two megabits per second upload speed to make cloud computing work properly.” A fast, reliable ADSL2+ or 4G connection is good enough, super-fast cable is even better however, a fibre-optic (ie. NBN) connection is the best by far. FoxQUOTE CLOUD costs around $39 per month license. All the usual FoxQUOTE online quoting assessing, accounting, production management & financial reporting applications are available too. For more information call: 02 9580-3898 or visit: www.foxquote.com.au.
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PRODUCTS
AXALTA’S SAGOLA 4600 XTREME SPRAY GUN The new Sagola 4600 Xtreme spray gun tackles modern refinishing challenges head-on. While it might be the same colour as its predecessor, the 4600 Xtreme has been specifically designed to suit today's industry professionals. "Sagola have worked with users around the globe to refine their latest Xtreme spray gun. They've taken on the voice of the customer to help develop the 4600," explains Axalta national training manager Paul Polverino. Its lightweight, ergonomic design is suitable for left and right-handed users. It is made from the toughest 100 per cent stainless steel. "The 4600 even has a new centre of gravity, making it amazingly comfortable for both small and large hands. The new trigger design and internal valve also give the 4600 a completely new feel," says Polverino. This new trigger design reduces fatigue while still delivering perfect paint uniformity. A new air distribution system creates the finest and smoothest spray yet. "Brand new nozzles allow for greater fluid flow and distribution, creating easy spraying in a wider range of conditions. "Redesigned air caps give a more controlled fan and perfect application from air pressures as low as 1.5bar up to 2bar," says Polverino.
FARÉCLA G3 PREMIUM Everyone who has worked with the new compound, smash repairers and paint technicians alike, are loving the speed of cut and exceptional finish offered by G3 Premium. It is a first true one-step compound for the super hard European clearcoats. The high performance cut and gloss extends all the way up to the very latest energy or 'hyper' clearcoats used in the latest European car models. Paint companies are especially impressed with the new G3 Premium as it performs very well on the new generation clearcoats they are developing. For smash repairers, that means G3 Premium is future-proofed and versatile. It performs well across all HS and MS paints as it does on the latest very hard clearcoat systems. Farécla have taken a radically different approach to the abrasive technology in this formulation and it is paying dividends. The one-step "cut and polish" nature of this product combined with its ease of use will improve efficiency and enhance profitability for smash repairers of all sizes. A limited number of free trial samples of G3 Premium Abrasive Compound are available from the sales team at Stork AWD Pty Ltd on 03 9560 6060.
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PRODUCTS
GLASURIT 151-170 UV PRIMER FILLER Glasurit has announced the launch of a new primer filler for bodyshops that want to repair minor to moderate damage more efficiently. Glasurit 151-170 UV Primer Filler grey helps reduce process times, energy and waste. Thanks to
UV-A technology, it is also easier and safer to use. A special lamp transmits longwave ultraviolet light, referred to as UV-A radiation. The radiation brings about quicker drying, enabling the primer filler to literally dry at the speed of light. Compared to oven and infrared drying, bodyshops can substantially save energy costs and drying time with the new primer filler and UV-A technology. As no heat develops with UV-A radiation, process times are shortened because it eliminates the need for a cooling phase. It also prevents plastic bumpers from becoming deformed during the refinishing process. The UV-A radiation is the least harmful part of the ultraviolet light. This makes the technology safe and easy for bodyshops to use. There is no need for a separate work area in the bodyshop and spray painters do not need to wear protective clothing. It's enough for them to wear protective glasses and regular protective gloves. The new UV primer filler is a 1K product without limited pot life. It requires neither hardener nor thinner additives and once it's in the cup, has a shelf life of several days.
STANDOX CHANGES SUBSTRATE PRE-TREATMENT PROCESS Standox has launched the VOC Xtreme Filler U7600 and the Express Prep Wipes U3000 as a new option to accelerate the substrate pre-treatment process. The new VOC Xtreme Filler U7600 is very simple and quick to apply in a single process step, without intermediate flash-off times, in up to four coats. "When dried at ambient temperatures of 20°C, the filler is ready for sanding after just 20 to 40 minutes," Axalta product and colour manager ANZ John Nettleton said. "This not only makes it possible for bodyshops to increase their throughput, but also helps them to cut energy costs. And refinishers don't have to worry about moving and adjusting IR drying devices. "Thanks to the product's fast air drying properties, a large number of areas that require filling can be dried at the same time. Forced drying can also be used, which can keep idle time to an absolute minimum." If the VOC Xtreme Filler U7600 is used on bare metal, refinishers must use the Express Prep Wipes U3000. 64 PAINT&PANEL November / December 2017
These wipes ensure proper adhesion of the filler and provide outstanding corrosion protection. Compared to the use of an etch primer, using the wipes means flash-off times before application of the filler are reduced by up to 25 minutes. A single cloth is sufficient to pre-treat approximately two square metres of substrate. The cloth is also chromate-free and easy to dispose of after use. www.paintandpanel.com.au
PRODUCTS
HELLO SAILOR! Check out SATA’s latest special edition spray gun ‘Sailor Lady’. Inspired by classic pin up motifs and traditional tattoo artworks, the SATAjet 5000 B Sailor features a nautical theme, including a cheeky sailor lady and the words 'The SATA way – let's spray away'. The attention-grabbing design was created by Connie Manjavinos, from Colorado, USA, and took second prize in the 2016 SATA Design Contest. The durable, high quality surface treatment is designed to cope with the rough and tumble of everyday paint shop use or it could look great in a collector's display cabinet. The special edition gun comes with a reusable 600ml plastic cup and is available in digital and non-digital format, and in HVLP or RP technology. Like all of SATA's special edition spray guns, the SATAjet 5000 B Sailor is a limited production model with strictly limited stock available. The SATAjet 5000 costs the same as the standard 5000. Contact your SATA distributor now to put your name on one.
PANDA LAUNCHES RAPID CURE ARCH Panda’s Rapid Cure Infrared (IR) Systems were developed to meet the demand for faster repairs. By utilising shortwave electric infrared technology, Panda's rapid cure IR Systems dramatically decrease the overall repair cycle time, allowing you to get more repairs through your shop in less time. The system is designed for fast, hassle-free repairs. You can dry a large surface area on multiple panels with no need to reposition it. Once set in place, the semi-automatic system will automatically move according to the parameters previously set by the user. Fast positioning makes the Rapid Cure - I especially suited for body shops that perform large volumes of small repairs on one to four panels. The first arch was recently installed in Auckland where a hard dry was achieved in eight minutes.
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NISSAN’S REAL LIFE VIDEO GAME
KIA’S PROCEED CONCEPT: THE SMELL OF SUCCESS KIA MOTORS HAS unveiled the Proceed Concept at this year's Frankfurt International Motor Show, which features 'sensory evoking scents'. The Kia team has recreated the ‘Memory Bank’ for the Proceed Concept – a flush-mounted shelf housed within the dashboard, containing a trio of aromas. Kia Motors chief designer Europe Gregory Guillaume explained that each smell taps into every car owner throughout the generations. “Each of these three engraved flacons contains a scent synonymous with power, passion and performance; aromas that any petrolhead will instantly recognise. “There’s the warm musky smell of aged leather, the oily fragrance of a garage that’s home to a classic car, and the tang of high-octane motorsport fuel. This is about automotive passion and the love of car culture.” The new model also included the Luminline feature that creates an illuminated outline of the vehicle's glasshouse. The highlighted line that frames the glasshouse extends to the rear tailgate, enhancing the car’s dynamic proportions. The Proceed Concept’s body, including the low-mounted ‘Wingcams’, is coated in the unique Lava Red paintwork. The application of the paintwork is completed during week-long paintshop process, which combines 19 hand-applied layers of black, chrome-effect silver and red tinted lacquer for a glossy and lustrous paint finish. Kia has created the paint to be sensitive to changing light conditions so that its depth and metallic sheen further enhances the vehicle's contours and curves.
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AS PART OF the launch of Gran Turismo Sport, the latest installment in the well-known auto simulation game series, Nissan has created a one-off car controlled by a Playstation 4 controller. The remote-control vehicle, a GT-R/C is capable of a top speed of 196mph – not restricted for the purpose of the project car – with no one sitting behind the wheel. The GT-R /C is fitted with four robots that operate the steering, transmission, brakes and throttle. Six computers mounted in the boot update the controls at up to 100 times a second. The steering position is measured to one part in 65,000. The unmodified controller connects to a micro-computer which interprets the joystick and button signals and transmits them to the GT-R /C’s on-board systems. The wireless operation has a primary control range of one kilometre. The GT-R/C is also fitted with two independent safety systems, operating on different radio frequencies, which allow two additional operators to apply full ABS braking and cut the engine in the event of the main operator losing control of the vehicle.
www.paintandpanel.com.au
CAR CR AF T GROU P
Why you should become a part of Car Craft • Nationally Recognised Brand • The buying power of a group • Exclusive business partner offers • One off membership fee • No ongoing fees or charges • Network of like minded business owners • Established for 30 years • You own the company*
www.car-craft.com.au *Car Craft is an unlisted public company
Are you ready for the future of digital color? Colorvation enables bodyshop owners, technicians and painters to maximize productivity and profitability by using the company’s latest Automatchic™ and MIXIT™ digital technologies to increase speed and accuracy in color matching. Digital color matching means fewer errors and reduced cycle time, leading to a consequent reduction in costs and an increase in the potential number of vehicles going through the shops. Users already report an average reduction of up to 20% in overall paint use. Are you ready to give your business the digital advantage? To find out how Colorvation can give your business the edge, contact one of our digital color experts today, and visit : Automatchic™ is our pioneering hand-held spectrophotometer. In its current form, in combination with our extensive database, it is the most accurate color-matching system available.
www.colorvation.com