APP Sep Oct 2017

AUSTRALASIAN

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SEPTEMBER / OCTOBER 2017

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SEPTEMBER / OCTOBER 2017 WWW.PAINTANDPANEL.COM.AU

NEWS 08

HISTORIC REPAIR INFORMATION AGREEMENT A mandated scheme will allow the nation’s mechanical and motor body repairers fair and reasonable access to repair information.

10

FIX AUTO WELSHPOOL

The network continues to expand.

12

AXALTA TRAINING YIELDS RESULTS

TAFE NSW and Axatla celebrate its recent graduates

IN DEPTH 18

THE TAKATA SCANDAL

The tragedy continues to unfold.

20

A STICKY SITUATION

US practices have been called into question over glueing vs bonding.

28

CAR CRAFT, THE NEXT 30 YEARS

The network celebrates 30 years of success and looks forward to the future.

32

L!VE REPORT

The highlights from our half day conference

FEATURES 38 OPINION: OVERSEAS WORKERS

We share you thoughts on the 457 controversy

42

IBIS GLOBAL REPORT There’s a lot going on in the repair sphere in the UK.

51

PAINT & PANEL AWARDS

Insights into the conditions with shops on the judges’ circuit. Plus, the regional winners of our 2017 awards unveiled.

32 51

24

REGULARS 2 BEST PRACTICE 24 COOLING IT 26 WOMEN IN COLLISION 30 MARKETING 36 TECH TALK THATCHAM 46 TECH TALK I-CAR 48 SUPPLEMENTARY 50 LONDON CALLING 94 CRASH COURSE 96 PRODUCTS 98 FENDER BENDER

18

Genuine Savings.

Genuine Reasons.

Edition 1

From 1 January 2017

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.

EDITORIAL

WORTH ITS WEIGHT IN GOLD

I

’VE HEARD SOME criticisms of I-CAR before – the courses are too expensive, it’s too theoretical with not enough ‘hands on’ and "I can’t spare my staff for training".

IAG recently announced that all its repairers must be I-CAR Gold Class in the next two years - and this declaration is an industry game-changer, make no mistake about it. Yes, it's great that IAG is mandating Gold Class, as it will help to elevate the quality of repairs across its extensive network.

However, have you thought about what it means for your business?

If you’re not an I-CAR Gold shop, of which there are still only a handful at the moment, then imagine Mr or Mrs consumer has the I-CAR training scheme explained “Incorrect welding and ignorance to them. We know that insurers would manifestly prefer their customers’ cars fixed on recalibration issues which at one of their approved shops. Currently there are a number of ‘marketing would render the customer’s techniques’ employed, that we’re all familiar with, to encourage customers to do this.

Let’s pretend that your customer has a burning desire to use your services second biggest investment as above any other repairer – that they are rabidly loyal to you. Maybe the useful as a glass cricket bat in insurer’s ‘marketing techniques’ would hold no sway over them and they would protecting its occupants” put their foot down and insist on taking their car to your shop.

Now imagine the insurance consultant explaining that their repairers had undertaken an exhaustive training program to ensure that technicians were totally up to date with the latest repair techniques. They explain the potential dangers of incorrect welding and ignorance on recalibration issues which would render the customer’s second biggest investment as useful as a glass cricket bat in protecting its occupants if they were involved in another accident. That would convince me to take my car to a Gold Class repairer - hell, you’d probably take yours there!

If you don’t display the Gold Class sign in the next two years then you will start losing business. Where IAG lead other insurers follow, so don’t be surprised if in the next rounds of RFPs there’s a new condition about I-CAR training. IAG has effectively set a minimum industry standard so it’s time to be as good as gold and get training - because anything less just isn’t going to cut it.

Sam Street Editor

AUSTRALASIAN

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NEWS NEW FIX AUTO WA

TRAINING SUCCESS

PAGE 10

PAGE 12

SENATE INSURER FOCUS PAGE 14

HISTORIC REPAIR INFORMATION AGREEMENT MTAA WELCOMES THE Australian Competition and Consumer Commission’s (ACCC) decision to recommend a mandated scheme to allow the nation’s mechanical and motor body repairers fair and reasonable access to repair information.

The recommendation, contained in the ACCC interim New Car Retailing Market Study report, acknowledges the significant advocacy, representation and leadership MTAA and members have provided on behalf of its thousands of member businesses.

MTAA CEO Richard Dudley said the recommendation of a mandated scheme recognised MTAA’s and members’ unique

understanding of a highly complex issue by harnessing knowledge from all of its member constituents.

“This enabled MTAA and members to deliver a balanced and pragmatic input and suggestions to resolve this issue and deliver improved consumer choice, enhanced fair competition and greater certainty to all industry participants.

The ACCC market study team has tackled an extremely complex and multi-faceted issue as part of their investigations and MTAA and members welcomed the opportunity to provide comprehensive information from grassroot businesses, other materials

gathered and to provide access to member businesses and resources,” Dudley said.

“MTAA facilitated the original heads of agreement with Government and has spent the past two years investigating improvements, gathering detailed information on specific problems and trying to facilitate further enhancements.

“We now look forward to continuing that leadership by working with the ACCC, Government and willing members of the industry to cement the recommendation into action,” he said.

AKZONOBEL MELBOURNE BUSINESS BOOST AKZONOBEL HAS ANNOUNCED a new partnership that will see its brands Sikkens and Lesonal distributed by the Zagame Group throughout the Melbourne market.

AkzoNobel GM vehicle refinishes Australia John Bermingham said the deal was struck out of a mutual business strategy by both brands.

“We see a lot of synergies between our brands, and in today’s market conditions, it is absolutely crucial to have strong partners and reliable and effective channels to market.

“We have global expertise, renowned products, and Zagame has a strong name in the local market. One of our values is ‘Winning Together’ and we see our partnership as such. Not only will it help us to win more business, the end user will benefit from our joint forces.”

8 PAINT&PANEL September / October 2017

Zagame Automotive Group MD Bobby Zagame said the move would allow the business to expand into new markets.

“With our recent acquisition of our distribution centre in Tullamarine, this

new partnership will further diversify and expand our current logistics model, enabling our wholesale business to provide a complete service to our existing clients now and into the future.” www.paintandpanel.com.au

NEWS IN BRIEF CHANGES AT SUNCORP

Brett Wallace is Suncorp’s new national industry and repair performance manager. Wallace takes over from Rob Bartlett who has begun a new role as executive manager at Suncorps joint venture operation.

Wallace has been with Suncorp for more than 10 years. He is a panel beater by trade, and he started his insurance career as an assessor.

He has since worked in repairer management and repair strategy.

AXALTA OPENS WA TRAINING FACILITY

IAG’S NEWEST INNOVATION HUB

IAG has unveiled its latest ‘innovation incubator’. The Firemark Labs, located in Sydney’s CBD, will play a key role in developing IAG talent, insights and capabilities with external partners, with a focus on creating better customer experience.

The labs will endeavour to create an environment that can sustain ideas that enhance customer experience for IAG brands.

The incubator has the capacity for more than 100 people from within and outside IAG to work together in the space.

AXALTA HAS OPENED the doors of its newest training facility in Western Australia, designed to maximise refinishers’ skill-sets and keep them up-to-date with latest technology and techniques. Another aim of the centre was to help customers and business partners in

WA avoid having to travel vast distances, often up to 4,000km, to their nearest facility.

The 400 square metre facility is located south of Perth on the premises of Axalta distributor Global Autocoat.

It has two training rooms with the latest audio/visual equipment, two mixing rooms, a functional production planning room, two dry sanding floors and an adjoining colour study.

There are also two spray booths, one down draft and one down draft with GAS IR Arch, with full-length glass walls.

The booths have also been fitted with a climate control setting that allows varying temperatures, commonly found in regions of WA, to be replicated.

FIX AUTO GAINS ANOTHER

IAG COO Julie Batch said the new facility will draw focus to the important role customer experience will play, especially when shaped through new technologies and capabilities.

“Firemark Labs Sydney will link us to Australia’s entrepreneurial community and enable our business to work with the people and partners who can help us challenge the status quo and innovate for our customers’ changing needs.

“It is critical to our growth strategy that we build and connect with innovation ecosystems that bring together universities, entrepreneurs and business, along with the regulators and government, who can help us evolve.”

Earlier this year IAG opened its first insurtech hub, also called Firemark Labs, in Singapore to connect with, and contribute to the thriving start-up scene in the global technology hotspot.

10 PAINT&PANEL September / October 2017

FIX AUTO HAS announced its latest addition to its network, Fix Auto Welshpool, owned and operated by Mark Zeyad Damer. Originally Swan Smash Repairs, the business will now operate under the Fix Auto banner.

Damer and the team have grown the business since its launch in 2003, and in 2007, the shop was moved to a larger location, to which an adjacent unit was added in 2011.

Damer said he made the decision not only because of Fix Auto network’s global reach and model but also because it allowed him to continue to operate at a local level.

“The Fix Auto network is made of successful familyowned businesses like mine, which grow thanks to their owner’s passion for the industry.

“Plus, Fix Auto offers value through their supply

chain, as well as world-class marketing support and access to industry-leading operational tools and procedures.

“Through Fix Auto, we benefit from a recognised brand, strong industry relations and a collective commitment to excellence.

“These benefits, coupled with corporate support and a comprehensive suite of reporting tools, allows me to proactively monitor processes and increase productivity,” Damer said.

Welshpool team in their new Fix Auto uniforms. www.paintandpanel.com.au

NEWS IN BRIEF CHEMSPEC APPOINTS NEW AUSTRALIAN PARTNER ChemSpec USA has announced the appointment of Brisbane Refinish Supplies as the distributor of its products for the Queensland market. Brisbane Refinish Supplies will offer a range of paint systems from ChemSpec USA, including the Metalux Automotive Refinish System and Montana Big Sky products for Refinish, Fleet and Industrial applications.

The company will also handle all aspects of importing and selling of product, plus technical support in their region.

EURO NCAP NEW CHAIRMAN

Euro NCAP has appointed Pierre Castaing as its new chairman and president of the board of directors. Castaing, who succeeds Andrew Miller will step into the role for the next two years.

Originally an aeronautical engineer, Castaing has worked in the field of personal protection and vehicle safety for over three decades.

RESULT FOR AXALTA, TAFE NSW TRAINING AXALTA AND TAFE NSW celebrated the success of its partnership with the graduation of its inaugural program’s first students. Under the training and support of the partnership, each student has now successfully completed their Certificate III Vehicle Painting Apprenticeship.

The course, run out of Axalta’s Riverstone facility, saw a student retention rate of 90 per cent, compared to the industry standard of 50 per cent.

Axalta’s alliance with TAFE NSW began in 2016 following the closure of TAFE course facilities at Mount Druitt.

Axalta national training manager Paul Polverino said the Riverstone facility was able to provide those students, still looking to complete courses, with the right training and guidance alongside TAFE NSW. “At our Riverstone training centre, we provide the materials, the venue and a

trainer to work alongside the TAFE trainer.

“Our aim is to show these talented young people that they can have a rewarding career in auto repair and refinish.”

The first apprentices were recognised in an awards presentation in late June, where I-CAR Australia’s OEM and operations coordinator, Jason Trewin, was there to present the six graduates with their I-CAR Platinum Certificate.

“I-CAR congratulates the first group of apprentices to successfully complete their training. The initiative shown by the whole team at the Axalta training centre and the refinish staff at Campbelltown College should be commended for their efforts,” said Trewin.

Following the program’s success, Axalta has committed to continuing its support of additional apprentices.

HEAD TO THE WORKSHOP SUV DRIVERS SUCK

SUV drivers have been labelled the the worst in the world, according to research by TomTom Telematics 32 per cent of Australians surveyed pointed to SUV drivers as the worst on the road, with sports car drivers trailing closely behind.

The survey found 52 per cent of motorists have been put in a dangerous position by commercial drivers.

Over three quarters (77 per cent) of Australian motorists also said they are less inclined to do business with companies whose drivers drive unsafely or discourteously.

Truck drivers (29 per cent), motorcyclists (29 per cent) and Utes (28 per cent) were also in the bottom four for driving stardards and safety.

12 PAINT&PANEL September / October 2017

CAPRICORN HAS LAUNCHED a new online member community platform called The Workshop, a place where members can come together to share thoughts and ideas on anything to do with Capricorn.

The Workshop enables members across to have a say in how the other business they own, Capricorn, is run.

According to Capricorn Group CEO, Greg Wall, The Workshop provides a real time, fast and easy method for members to voice their valued opinions directly to Capricorn.

“Our members are the whole reason why we exist and everything that we do at Capricorn is designed to make business easier for them. In order to further improve our services and to gain new ideas from our members, we have established this easy to use Capricorn member online community platform. The Workshop

provides us with direct member feedback to shape an even more exciting, efficient and rewarding future ahead.”

The Workshop will feature different Capricorn topics each month, topics in which Capricorn Members can vote, express opinions and submit their own ideas about.

“I am sure that our members will be very surprised with the differences that can be made by spending five minutes a month to make their thoughts known at The Workshop. We look forward to our members making the most of this important online information and feedback platform now and well into the future,” Wall said.

Access the Workshop via the Capricorn website.

www.paintandpanel.com.au

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NEWS

HARMER CALLS IAG FY17 RESULTS ‘SOUND’ IAG ANNOUNCED AN FY17 insurance profit of $1.3 billion and a reported insurance margin of 14.9%, a 6.8% and 60 basis points (bps) respective increase on FY16.

Gross written premium grew by 3.9% to $11.8 billion. This was driven mainly by higher rates on short tail motor in response to claims inflation and continued momentum in IAG’s Australian commercial rates. Net profit after tax increased 48.6% to $929 million.

IAG CEO Peter Harmer said the company was on track in its work to strengthen the overall performance of its businesses.

Harmer added that the company was well-advanced with its plans to address the rising cost of claims.

“We have a number of initiatives underway that look at how we can reduce the cost of managing claims in a way that creates affordable insurance options for customers both now and into the future. We expect these initiatives, which are being created in consultation with our customers, to be finalised in the first half of the 2018 financial year.” Strategy update “Over the year we’ve refined how we work with customers on product and experience

design; empowered our frontline people to solve customer needs in real time; and provided excellent experiences around claims and repair. These have all contributed to a steady increase in our net promoter scores across our brands,” Harmer said.

“We’re on track in partnering with global experts to simplify processes and reduce complexity, and advanced on our work to reduce our 32 policy and claim systems to two. We have started work on rationalising our product range from 1,500 to just over 400; and on 1 August 2017, following court approval, consolidated our Australian insurance licences from nine to two.

SENATE INQUIRY ON INSURANCE THE SENATE INQUIRY committee into the insurance industry was formed in November 2016. It was tasked with examining the rising cost of insurance cover over the past decade in comparison to wage growth, competition and transparency in the market and the potential benefits of establishing an independent governmentrun insurance comparison service.

Lively public hearings took place in Sydney and Melbourne and now the committee has published its report called ‘Sapping the consumers will to compare.’

There are 15 recommendations many of which are about areas unrelated to motor insurance. However, policy comparison on home, motor and other insurance was a big focus of the report. Many of the inquiry submissions were vehemently against comparison websites. While the committee acknowledges the strong concerns: ‘in particular the risk that such a service could lead to consumers focusing on product price rather than value,’ the report recommends the Government carry out a detailed proposal for a ‘more simplified’ insurance comparison tool.

Product disclosure statements (PDS) were directly in the line of fire and considered unfit for purpose. ‘The committee is deeply concerned by the apparent lack of transparency in the general insurance industry with regard to product disclosure, and the detrimental effect this has on consumers’ ability to effectively compare similar insurance policies,’ the report says.

It recommends requiring insurers to 14 PAINT&PANEL September / October 2017

disclose the previous year’s premium on renewal notices and provide an explanation of premium increases when requested by policyholders. It also says component pricing of premiums should be available to policyholders.

An independent review of the standard cover regime is also recommended, along with the development of standardised definitions of key terms for general insurance. The committee also recommends the removal of general insurers’ exemption from unfair contract terms laws – which the insurers fiercely oppose.

VACC says it concurs with the inquiry, “More needs to be done,” said John Guest, VACC Industry Divisions & Policy Leader.

Guest is deeply concerned by the apparent lack of transparency in the motor vehicle insurance industry with regard to product

disclosure. A lack of process and transparency also leads to unnecessary conflict between insurers and repairers Consumers need to know the extent to which they are covered by choice of repairer, towing coverage immediately after accident through to the place of storage they determine and the consequences if the policyholder then decides to have the vehicle transferred elsewhere.

Critically, and a matter Gerard Brophy from the Consumer Law Action Centre (CALC) alluded to in his presentation to the Senate Inquiry, is the reasons for cash settling the policyholder to be made clear.

VACC says consumers need to be protected here and not exploited by a failure of insurance assessors to apply Realistic Times and Realistic Rates (RTRM) calculations to the cash settlement amount.

www.paintandpanel.com.au

NEWS TOP WEB STORIES

INDUSTRY REPORT

Here are the top three stories on the Paint and 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.

THE FIRST COMPREHENSIVE analysis of the nation’s automotive industry in three years, launched by Senator Nick Xenophon at Parliament House, Canberra in August and explores the full scope of the industry.

Directions in Australia’s Automotive Industry: An Industry Report 2017 provides detailed insight into key sectors of the automotive industry and answers key questions including: • How important is the automotive industry to the Australian economy?

• What trends are impacting on key sectors of the automotive industry?

• Where is the industry headed over the next few years?

• How can automotive businesses prepare for the future?

At a time of unprecedented change, the report uncovers the automotive industry’s economic contribution to the nation, business operating conditions, and detailed analysis of skills shortages and training requirements, along with insights into the direction automotive is headed.

We had another record month on the website in August with over 11,000 unique visitors. We publish many stories on-line 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.

KEY FINDINGS • The automotive industry contributes $37.1 billion to the Australian economy (2.2 percent of GDP).

• Automotive repair and maintenance businesses account for 54.0 percent of the automotive industry; the next largest sector is motor vehicle retailing at 8.3 percent.

• Automotive vehicle and parts manufacturing accounts for 4.4 percent of the industry.

• 96.5 percent of automotive businesses are small and family run enterprises.

• 41.9 percent of auto businesses are run by sole proprietors; 54.6 percent employ 1-19 employees.

• 800,000 registered vehicles (excluding motorcycles) were scrapped between 2015 and 2016.

• Profit margins for repair/maintenance businesses in 2015/16 was 12.2 percent; fuel retailing was 2.4 percent.

The report costs: $90 for MTA members $309 for non-members. Visit VACC website for more details.

JULY

1 2 3

Vasse Panel & Paint joins Car Craft IAG centralises Australian operations Bunbury City Smash Repairs joins Fix Auto

AUGUST

1 2 3

2017 Paint & Panel Bodyshop Awards State Winners Senate inquiry into insurance industry report published What is insurtech?

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.

16 PAINT&PANEL September / October 2017

BMW CONTINUES ELECTRIC CHARGE BMW GROUP HAS stated that all brands and model series can be electrified, with a full-electric or plug-in hybrid drivetrain being offered in addition to the combustion engine option. The decision is part of the group’s continued dedication to providing alternative energy vehicles to the market, with the company also announcing that additional electrified models will be brought to market in the coming years and beyond 2020.

BMW will also put its fully electric Mini

into production in 2019. By 2025, the BMW Group stated it expects electrified vehicles to account for between 15-25 per cent of sales.

However, the company did highlight that factors such as regulation, incentives and charging infrastructure will play a major role in determining the scale of electrification from market to market. www.paintandpanel.com.au

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IN DEPTH

TAKATA: AN INTERNATIONAL CRISIS Josh McDonnell recaps all the recent developments surrounding the Takata airbag scandal.

More than 850,000 affected vehicles in Australia have already SOME HAVE LABELLED it one of the largest industrial failures in been rectified. In a statement from the ACCC, the watchdog said it automotive history, 19 different automakers, all now scrambling was urgently seeking information from the Department of to recall cars manufactured within a 13-year window.

Infrastructure and Regional Development (DIRD) and car The reason? Faulty airbags. manufacturers regarding Takata airbags at the centre of the largest The Takata airbag crisis, which has already been the cause for vehicle recall in history.

19 confirmed deaths worldwide, has been an international “Do not ignore or delay responding to a letter from your car’s talking point over recent months. manufacturer or retailer asking you to have your car’s airbag Manufacturers such as Honda and Nissan are at the heart of replaced. The airbags degrade over time and can become lethal this scandal, after supplier Takata installed millions of faulty by misdeploying and firing metal shards at the car’s airbags worldwide. occupants,” ACCC chairman Rod Sims said.

The main source of the fault is with the airbag’s inflator, which The ACCC says due to the availability of stock worldwide, has begun to generate an excessive amount of heat and then retrofitting issues and the availability of authorised technicians explode, causing shards of metal to spit out from the wheel. able to fit airbags, progress on the recall was initially slow but is An ammonium nitrate-based propellent without a chemical improving over time as stock becomes available. drying agent has been identified as the cause for the heat Car manufacturers say there is now sufficient stock available within the inflator. for affected cars to be fixed.

Since news broke of the fault, Takata While recalls in Australia are well Corp has filed for bankruptcy protection “Regulators in the US have underway, the Australian Government in Japan and the US. given the ailing airbag has indicated that a mandatory recall US supplier, Key Safety Systems Inc could be issued should it determine that (KSS), based out of Michigan in the US is company until the end of manufacturers aren’t working quick expected to acquire “substantially all” of 2019 to prove that its enough to solve the issue.

Takata’s global assets and operations for replacement airbag Regulators in the US have given the $1.59 billion. ailing airbag company until the end of The deal will not include the business inflators are also safe.”

2019 to prove that its replacement relating to the global airbag recall which airbag inflators are also safe. will be run by a “reorganised” Takata.

Should Takata fail future safety tests, the close to 100 Takata said it would keep producing the components until million inflators which are currently being installed, may also March 2020 to ensure a steady supply of replacement inflators need to be recalled. for the millions being recalled.

The failure of this workaround could see automakers who “Throughout this process, our top priorities have been have existing contracts with the manufacturer once again providing a steady supply of products to our valued customers, liable for the costs of replacement. including replacement parts for recalls and a stable home for our A large sum of the $10 billion USD bill has already been passed exceptional employees. This agreement would allow that to on to automakers following initial recalls. continue,” said Shigehisa Takada, chairman and CEO of Takata.

While companies such as Honda, Toyota and Nissan have There are estimates that replacing the airbags and faulty parts stated they will no longer use Takata airbags on new models, could cost Takata around $5 billion, without factoring the costs some manufacturers will still opt to use replacement inflators associated with impending lawsuits. in the recall.

The problem has spread here to Australia as well.

A man in NSW was tragically killed on July 13 when his airbag deployed incorrectly, and a woman in the Northern Territory suffered severe injuries from her airbag after a crash in April.

The Federal Chamber of Automotive Industries (FCAI) has extended its sympathies to the family and friends of the man involved in the tragic Takata airbag incident.

FCAI has joined the call from government and the ACCC in strongly urging all owners to assess whether their vehicle is affected and if so, to contact their authorised dealer network immediately.

The Takata airbag recall is said to impact close to 2.3 million vehicles in Australia.

As one of the major manufacturers involved, Honda Australia is working closely An up close image to provide whatever assistance is required. indicating the airbag is on 18 PAINT&PANEL September / October 2017

www.paintandpanel.com.au

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IN DEPTH

WHEN IT ALL CAME UNSTUCK A tragedy caused by improper repair methods has resulted in multiple lawsuits and blame finger pointing. Josh McDonnell reports.

A HORRIBLE CAR accident has sent shockwaves through the US vehicle repair industry after it was revealed that glue was used to repair the vehicle’s roof instead of the correct welding procedure. A couple from Dallas Texas suffered crushing injuries as a result of the alleged cost cutting method used by Dallas-based John Eagle Collision Centre who is being sued by the couple.

The couple had originally intended to also sue insurance powerhouse State Farm, however the insurer has since been dropped from the case. It was indicated that legal proceedings against John Eagle Collision would be delayed should State Farm remain part of the case.

3M, whose adhesives were used in the botched repair, is now set to be included in the newly refiled lawsuit. What role 3M will play within the case has yet to be made public.

Matthew Seebachan, 33, and his 29-year old wife, Marcia, were trapped inside their used 2010 Honda Fit when the glued roof caused the car’s structure to catastrophically collapse and catch fire in a car accident.

In the case against John Eagle Collision Centre, director Boyce Willis admitted that the company ignored Honda’s repair specifications. John Eagle’s corporate representative further testified that the 3M adhesive, used in the repair process, was used despite the fact that 3M specifically stated that Honda does not permit the use of adhesives. According to his testimony, the collision centre’s profits is considered to be more important than safety and that State Farm are able to ‘trump’ Original Equipment Manufacturer (OEM) standards to ensure the centre is paid. “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 OEM (Honda) specifications because the repair facility needs to get paid.”

John Eagle Collision Centre glued on a new metal roof to repair hail damage when Honda 20 PAINT&PANEL Septmber / October 2017

specified that the metal roof should be welded together, according to evidence filed in the lawsuit.

“John Eagle Collision Centre, by covering up its arrogant repair of using glue rather than following the manufacturer’s body repair specifications and using welds just like Honda had done when they designed, developed, and tested the vehicle, created a time bomb that was waiting to explode,” said Tracy Law vehicle safety lawyer, Todd Tracy.

The defective roof repair caused the car’s safety cage to collapse and the fuel tank located below the driver’s seat to rupture.

Matthew was subsequently trapped behind the wheel, remaining conscious, as flames burned his feet and lower legs before he was pulled from the wreckage by a motorist. Another motorist rescued Marcia through the passenger window of the car.

Automotive and biomechanical engineers in the case analysed the Seebachans’ wrecked Honda Fit and concluded that had the roof been properly welded by John Eagle Collision Centre as specified by Honda’s body repair manual, the Seebachans would likely have had only minor injuries.

The hail damaged body work was not disclosed to the Seebachans when they purchased the used Honda four months before the accident occurred in 2013. A statement filed by the Seebachans as part of the federal lawsuit points the finger at State Farm for causing the horrific incident.

“State Farm advertises that it is a ‘good neighbour. On the contrary, behind the closed doors of auto collision centres, State Farm’s ‘good neighbour’ becomes a Dr. Jekyll and Mr. Hyde creature that turns into the ‘neighbour from hell’.”

The lawsuit alleges that State Farm forced John Eagle Collision Centre “to use glue instead of welds and the shoddy and substandard repair work turned Matthew and Marcia Seebachan’s Honda into a bonfire”.

“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,” said Tracy.

“There was no way the Seebachans or anyone from Huffines Kia could see that the roof was glued rather than being welded because paint and shiny trim covered up a time bomb.”

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BEST PRACTICE

QUALITY CONTROL IS PARAMOUNT Nothing in collision repair is as expensive as re-work and there is nothing more damaging than a poor customer review says Nick Spiers from Fix Auto World.

IN TODAY’S COLLISION repair industry, the quality of repair is essential to survive and nothing less than 100 per cent repair quality satisfaction should be accepted. A good rule is to ask yourself the following question would you accept a poorly finished repair if it was your own vehicle?

Quality control is something that's a key part of almost every industry and every job.

You probably engage in your own form of quality control several times a day. If you proofread your email before you send it, that's a form of quality control.

Therefore, creating systems and processes to find quality issues as quickly as possible is now essential.

Compare the cost of a missed dent in a repaired panel.

If the dent is discovered before the vehicle enters the safety net and a chance to ensure the presentation of the vehicle is paint shop, the cost of correction is small. If it’s discovered perfect. All repair process stages are part of quality control and need after the panel has been refinished, the cost of repair is to be checked systematically if you don’t want them slipping through. significantly higher. If the customer finds the dent at delivery, Therefore, the Fix Auto Quality Assurance checklist is a the cost is extremely high. routine that needs 100 per cent compliance as should yours Therefore, in our case, the Fix Auto Quality Assurance so document it.

Process is there. Do you have a process in your shop? The key It is vitally important for the person carrying out the final points of the checklist are to ensure ownership and quality inspection to know what repairs were performed to the vehicle. standards are met during the repair from start to finish and The process for this is to ensure that the repair order (job not just left until the end. card), repair methods used and quality assurance checklist are Each stage has its own checklist and requires sign-off by the with the vehicle at all times or are available at the final technician responsible before it progresses to the next stage. inspection stage. Part of the final inspection should also be a The next stage should only start when the technician receiving cross check to ensure the ownership of the vehicle in the next stage has cross each stage has been complete on the checked the previous stage and ensured quality assurance checklist. that sign-off has been completed.

“Each stage has its own A key point in the quality assurance The transition of the repair from checklist and requires process is that the failure to follow this body to paint presents a major sign-off by the technician process could result in an increase in opportunity to catch quality issues cycle times. Adherence to the quality early. Create a standard for the responsible.” assurance process builds confidence in movement of a repair into the paint the front of house/bodyshop reception as shop that includes your approved filler it allows the communication to the customer to be delivered finish grit, paint edges, dismantling and where parts to be accurately and with confidence. They know that when they painted are to be checked and located. The process should make promises to the customer that the vehicle will be check the repair quality of the work carried out and also delivered right first time, on time they have the reassurance provide a method to check for additional damage or dents, and safety net of the quality assurance process behind them. before the vehicle is allowed into the paint shop.

But another key point is that many of the items covered here Remember, the little things you miss can become greater require communication between all departments and knowledge exposures than you possibly imagined. of how the specific vehicle being repaired operates.

Cycle time is important in today’s collision repair centres, but so are customer satisfaction scores and NPS. Cleaning and detailing of vehicles has become a big part of final delivery procedures today and something that the customer sees right away.

Fix Auto’s core values: Entrepreneurial Inspecting many areas of the vehicle before releasing it to the spirit, ethics, continuous improvement customer must continue. But the reassurance for the person carrying and customer commitment. To find out out the final inspection will be that the team of technicians more about Fix Auto Australia contact responsible for the finished repair have also taken ownership Terry Feehan on 0455 345 055. throughout the repair. Technically, the final inspection is now just a 22 PAINT&PANEL September / October 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.

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COOLING IT

NEW AIR-CON GAS TO HIT THE STREETS VASA's Haitham Razagui helps you to wrap your head around the next entrant into the increasingly complex automotive refrigerant market.

JUST AS YOU were getting your head around the latest automotive air-conditioning refrigerant, R1234yf, another one crops up on the scene.

I was at an auto-AC conference in Frankfurt last year where a prototype Mercedes-Benz S-Class using carbon dioxide as air-con refrigerant was being demonstrated.

The refrigerant name for CO2 is R744. It behaves very differently to the synthetic gases we’re used to, operates at seriously high pressure and can form dry ice if you’re not careful.

Beneath the gleaming black S-Class bonnet, among what looked like desert sand – evidence of hot-weather testing – I spotted a Sanden R744 compressor and some Valeo heat exchangers plumbed around the V6 turbo-diesel engine.

The R744 compressor has a 31cc capacity, a fifth of the R134a Now Sanden has officially announced it is unit it replaces, but Sanden claims its “cooling performance and supplying Mercedes-Benz parent company Daimler with ‘the function exceeds conventional compressors”. world’s first CO2 compressor for mass-produced passenger cars’.

Its packaging and weight is also said to match that of the old The global media launch for the facelifted Benz flagship took R134a compressor and it is able to withstand five times the place in Switzerland last month, with six-cylinder engines moving operating pressure. Sanden also says the new R744 pump from V6 layout to inline format. So I take it the prototype in included internal design features designed to reduce noise, with Frankfurt was a proof-of-concept machine and that testing of the new control technology that improves its stability and safety. straight-six engines with CO2 air-con components came later.

Facelifted S-Class limousines are now literally driving Indeed, the announcement from Sanden suggests the themselves off the end of the Sindelfingen production line just development timeline for this technology was compressed. outside Stuttgart, travelling 1.5 “It has been quite a challenging kilometres to a holding yard without project also for Daimler to get the R744 “R744 behaves very anyone behind the wheel.

AC system launched in such short They are obviously pretty capable period,” said Daimler AG project leader differently to the synthetic of avoiding accidents, but if you see for R744, Dr Ralf Theurer. gases we’re used to, one in your panel shop, don’t be He added that the reason for selecting operates at seriously high surprised to find a pretty alien-looking Japanese component manufacturer AC system to recommission.

Sanden as development partner for pressure and can form dry I’m travelling back to Frankfurt Daimler’s CO2 air-conditioning systems ice if you’re not careful.” this September for the international was “their extensive experience with motor show, and will bring back this refrigerant and pioneering spirit updates about which R744 cars are coming to Australia, towards new technologies”. and when, from the people in suits at each German car According to Sanden, it accelerated the development for manufacturer. Watch this space.

Daimler by drawing on its experience in R744 applications including freezers, refrigerators and vending machines, then incorporated technologies from all these products to create a Smash repairers tend to be among the first to high-performance automotive compressor. encounter new technology on late model cars.

Sanden Automotive Components took the development of this Becoming a member of VASA, the industry R744 compressor incredibly seriously, establishing a project team association for those in the business of that reported directly to the company president, in close automotive air conditioning, electrical and collaboration with their German counterparts at Daimler. engine cooling, helps you to be ready for – and Company president Tsuguo Ito said he intends to “expand this to profit from – rapidly evolving changes to the way vehicles technology and use the knowledge gained throughout the work. Visit www.vasa.org.au/join. development to grow in a sustainable manner in the world market”.

24 PAINT&PANEL September / October 2017

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WOMEN IN COLLISION As great as our awards lunches are this year we want to include more women, getting as many as possible together at one event to network.

FOURTH LEADING WOMEN IN COLLISION AWARDS The Leading Women in Collision awards, sponsored by IAG, are now in their fourth year and the program will be enhanced to include developing women in the industry as well as recognising their contribution.

THIS YEAR’S AWARDS provide greater opportunities for women throughout the industry, as Paint & Panel and IAG have worked together to develop the event into something more than an awards ceremony.

Women in Collision is developing and growing and instead of the traditional finalists’ lunch and award presentation, IAG will be hosting a seminar for women in the industry at its research centre in Newington, Sydney on Friday 17 November and we want you to join us. Places are free but limited to just 50 so make sure you secure your ticket today.

We’ll be dicussing how to encourage more participation in the industry, having a quick tour of the research centre, enjoying a spot of lunch and of course recognising the women nominated and chosen as finalists for this year’s awards.

It’s a brilliant opportunity to network and make new contacts in the industry. As it’s a Friday we might even stop for a tipple in the CBD on our return from the research centre.

Spotlight on women The reason we’re shining the spotlight on women is because, despite there being so many performing roles from owners to managers, accounts and payroll, marketing, business strategy, estimating, customer liaison, work provider relationships and working on the shop floor, it’s usually the men we hear about.

That was until the Paint & Panel/NRMA Awards began in 2014.

In that time we have received hundreds of nominations and recognised 16 women in the industry.

26 PAINT&PANEL September / October 2017

IAG’s Stephen Palmer, senior manager of industry development, was present at last year’s event and commented on the important role women play within the industry.

Palmer also said it is vital that these women a recognised for their dedication and service.

“Women play an integral role in smash repair businesses across Australia and are key to keeping the wheels of this industry rolling.”

This year we’ve added new categories to encourage recognition for younger women in the industry and those who who are either technicians or estimators.

Young Lauren Neil was a finalist in 2016 was very enthusiastic about the program. “I was proud to be a finalist in women in collision and now as a newly qualified spraypainter, I want young women not to feel held back in challenging themselves and trying any industry they may be interested in.” she said.

“I want them to be welcomed in a male-dominated industry, especially in apprenticeships, and see what great opportunities our trade has to offer, while bringing in new dynamics and skills themselves.”

Remember, Paint & Panel has a closed Facebook page for women in collision which anyone can join.

SECURE YOUR FREE PLACE

We’re not sexist here but we’d prefer that women stepped out from behind their desks or put down tools for the day to join us as the IAG Research Centre in Sydney on 17 November.

To secure you free place (places are strictly limited to 50) send an email to awards@paintandpanel.com.au with your contact details. www.paintandpanel.com.au

IN DEPTH

CAR CRAFT LOOKS TO THE NEXT 30 YEARS Car Craft recently celebrated its 30th birthday. Sam Street talks to Car Craft’s general manager, Peter McMahon, about what the group has achieved and what its future goals are.

HOW HAS CAR CRAFT DEVELOPED OVER THE LAST 30 YEARS? Over the last 30 years, Car Craft has achieved so much it’s hard to highlight just a few achievements. If you ask any of the former and current members I’m pretty confident it would be unity, standards, networking, opportunities and a proactive participation in the industry, through membership of the MTA’s or the lobbying of governments or its social responsibilities in supporting charities. It is not just about being a buying group. Sure, that is where the group started from. There’s been a transformation over 30 years to the group we see today. However, I will say one thing – they are still all proudly independent.

HOW DO CAR CRAFT MEMBERS INTERACT AND WHAT ARE THE BENEFITS? The paint companies and others do networking events well and many of our Car Craft members take part. However, we take a 28 PAINT&PANEL September / October 2017

slightly different approach which is more focused on the group being successful and trying to ensure no one gets left behind.

Networking socially as well as professionally, we also make sure that we are, as a group, across the latest vehicle technology and training techniques with the support of I-Car and our supplier – this one space where being part of Car Craft gives members the edge. Also it is invaluable to be able to pick up the phone to another member and seek advice. That is a big part of why people join Car Craft.

CAR CRAFT IS KNOWN AS A BUYING GROUP – DOES THAT MEAN MEMBERS HAVE TO BUY CERTAIN PRODUCTS? At its core, yes, the success has been based on being a buying group. Yes, each state will make deals with suppliers who can provide the best deals. This includes more than just discounts it can be servicing the shareholders, credits returns, networking and access to service departments in the case of OEMs. www.paintandpanel.com.au

IN DEPTH

MAIN AND LEFT: Car Craft Group holds regular networking events. ABOVE LEFT: Peter McMahon, General Manager BELOW: Total Hail Solutions is another string in the Car Craft Group bow.

repair industry stays quiet for long) so as to make sure we had all the pieces in place and believe me, we had a couple hurdles thrown our way. But it has been the absolute best decision made by the WA board.

Ezi-Methods is a no brainer for me, not only for Car Craft shareholders but everyone in the industry in general should have access to repair information. I remember back when I was running various shops, methods were rare and hard to get and to some extent we thought we knew everything anyway. But with today’s requirements in vehicle repair you have to know precisely what you’re doing. Distributing Ezi-Methods to both members and non-members is another way we ensure our members return these technologically advanced vehicles back to pre-accident condition.These methods won’t be just exclusive to members but are also available for non-members through the Car Craft group at the Ezi-Methods “We take a slightly distributor in Australia.

If we, as a group, are to achieve our different approach which ultimate goal to be is more focused on the best and for all members to achieve at the group being successful least the industry minimum as outlined in the AMBRA Shop Grading then we and trying to ensure no should have access to methods. Just to be one gets left behind.” clear we are a distributor for Ezi-Methods, this is not exclusive to Car Craft product.

To break it down, each Car Craft state is owned by the shareholders or members, and each has an elected board of directors and is an unlisted public company.

Every deal done is for the benefit of the shareholder/member and collectively those shareholders support certain suppliers to gain the best discounts and returns.

There are no ongoing fees after the initial joining fee and that fee hasn’t changed in a very long time and is not likely to.

This is sometimes hard for non-Car Craft business owners to understand. As a group we have built long standing relationships with many suppliers and in nearly all cases great discounts to the business owners. A small portion of that goes to running each state and providing the services.

TELL US ABOUT YOUR RECENT INDUSTRY PARTNERSHIPS.

I think we should go back further to when Car Craft took on the Finixa consumable brand in WA. I wasn’t here back then but I am told it certainly livened up the industry in the west, and as I said earlier these decisions are for the shareholder members benefit. Our members still support many suppliers and will continue to do so.

I think you’ll find Car Craft is a proactive organisation not only with Finixa. In Queensland the Car Craft team formed Car Craft Total Hail Solutions which has been a brilliant success run out of our Car Craft Queensland office and again these are all benefits to the shareholders.

On the decision to join up with the Valspar brand Octoral, over a period of time, the group had a few approaches all from quality organisations and as you would be aware there has been massive movement in this space with AMA Group and Fix Auto aligning themselves with certain brands. These brands are still used by many of our members. However, we could see an opportunity to further offer a point of difference to some of our shareholders who were looking for a top of the range premium product at a competitive price. Octoral has filled that brief.

We did keep it quiet for a while (not that anything in the smash www.paintandpanel.com.au

CAR CRAFT’S FUTURE PLANS? Our plan is to roll out the brand at a steady pace across Australia. The reason behind that is to ensure we don’t rush into a market and then we can’t deliver on our promises. I’m not into selling a pipe dream. This is about the future and a group that supports independent business owners who want to keep their identity while being part of a large group. At this point in time we have Darren Curry on board in Victoria and we’ll have some exciting news there soon with new signings. Once we are solid in the Victorian market, it is off to Sydney. I’ve been in this game long enough to know why they call it the ‘big end of town’. You need to do it right, and while I know we have quite a few interested businesses in NSW I want to make sure we don’t disappoint anyone.

September / October 2017 PAINT&PANEL 29

MARKETING

CONVERT CUSTOMERS DON’T TORTURE THEM Tinny digital tunes or even worse silence – if you don't have a professional hold message you can alienate customers and you're missing out on selling your business say Messages on Hold. “’I’LL JUST FIND out for you; hang on a sec.’ And that’s when it started: a 20-second piece of appalling music, repeated six times while I waited.”

Business today is more competitive than ever, so treating a business caller like this is one sure way to get them quickly off-side.

Callers will judge your business by the way you sound. In the instance above, this business clearly has little regard for their callers. If you wouldn’t annoy a customer in your premises by playing a tacky piece of music over and over, why would you consider it okay to do it to a caller?

Many business owners feel that because they don’t have to listen to their welcome announcement or on-hold music/audio, it doesn’t matter what these recordings sound like.

Businesses like these are under pressure from savvy competitors – competitors who go out of their way to make every interaction a positive one.

So what’s the experience like for your callers?

If you’ve upgraded your phone system in the past three years, it will almost certainly have the ability image or b) destroy it, like the example set out at the onset to automatically answer calls and play a welcome announcement. of this article.

This is the very first thing your customers and prospects hear, Understand that when you hit the Hold button, you have so it has to be impressive. your customer’s/prospect’s total attention at what is virtually A tacky voice reading a poorly scripted message and recorded in point of sale. a noisy office screams “We don’t care!” Instead, consider having You could waste their time and serve them up a 20-second your welcome announcement professionally scripted to include a loop of tacky music, force feed them radio ads for every business subtle plug for your business, recorded using voices that except yours (and pay the compulsory ARIA license fee for the complement your brand and mixed with high quality music. The privilege) or plunge them into silence which will surely result in end result should be, “Wow, these guys sound switched-on!” at least 50% hanging up after 30 seconds.

After the caller has heard the welcome message, they’ll be Instead, tell them something interesting, transferred to a member of your team. It’s something that enhances your chances of important that all team members sound “FACT: More than securing their business. professional on the phone and let’s be honest, Even if your callers know what you do, that requires some level of training.

70% of your remind them why you stand out from the crowd Most business owners don’t have time for callers will be and focus them on the real benefits of doing ongoing staff training, and it’s expensive. Well placed on hold.” business with you. Failure to reinforce your it used to be, but there are a number of new branding could well cost you a fortune. online training platforms, like www.canity.com, that offer quality training in bite-sized chunks, viewable on any device, anywhere in the world and for just a few dollars per day.

Phone skills is just one of many training modules available via • The largest telephone audio provider in Asia-Pacific. the Canity platform and it’s fair to say that every team member • On Hold messages, Menu Prompts, Music and Voice Overs. who picks up the phone in your business should at least view • Don’t think of it as placing customers on hold, think of it as this training module if you’re serious about wowing customers. holding onto your customers.

Assuming the first person they speak to sounds polished and Contact: professional, chances are they’ll then have to spend some time on 1800 MESSAGES (1800 637 724) hold while information is sourced or the right person is found. This +61 8 9260 4444 15-60 second period is of paramount importance. What you serve info@messagesonhold.com.au your callers then, has the potential to a) further enhance your

MESSAGES ON HOLD

30 PAINT&PANEL September / October 2017

www.paintandpanel.com.au

LIVE 17

SMASH MUST DIE

THIS YEAR’S LIVE half day conference was about one thing, and one thing only, where does the industry go next?

Everything from a complete industry re-branding right through to business diversification.

NO MORE SMASH

Moving away from the words smash and crash could raise the profile of the industry in consumer’s eyes according to keynote speaker Johnny Barker.

Report by Josh McDonnell.

First up was Barker Brand Partnerships principle Johnny Barker who demonstrated what’s in a name - especially the name smash or crash? Barker asked people to look at the word smash and what thoughts it evokes for customers. Words like fear, anxiety, anger, frustration and effort were all linked back to ‘smash’.

Further insights revealed that when people watched footage of an accident, their judgement of how fast the car was moving jumped 25 per cent when the word smash was used to describe the incident.

But what can be done to raise the image of the industry? Change the name. No more Smith Smash Centre, why not Smith Auto Revival Clinic or Smith Auto Body Specialists? Barker suggested some other name options for both business and tradespeople.

IS CHANGE POSSIBLE?

Johnny Barker offers his advice on industry changes.

32 PAINT&PANEL September / October 2017

Chaired by editor Sam Street, a panel of industry professionals including Damian Cahill of Holden, MTAA’s Richard Dudley, Steve Lozenkovski from Bears Group and Rainer Malkki from One TAFE all discussed the possibilities name changing could provide.

Of the many points raised, two stood out; is there enough time to change? And is it more about internal culture than external appearance? While Barker believes something as large as an entire industry rebranding could take up to 10 years, Dudley stated that was far too long to sit and wait. Comments from the audience were split. One particular member of the crowd said re-branding wasn’t what is needed, it was about re-building culture and ensuring staff and customers remain loyal to business.

Lozenkovski whose company made a conscious decision not to use the words smash or crash when it started out, agreed with the rebranding idea saying it would help to make the industry more appealing to ‘Joe Public’.

Street then stated that Paint and Panel will no longer be using the word ‘smash’ and panel beater in its coverage and invited the industry to take a pledge and do the same.

SUCCESSFUL RECRUITMENT Fix Auto World head of business David Lingham gave his tips to solving the ongoing employment crisis that continues to plague the auto repair industry.

Sharing experiences, Lingham said that the key ways to ensure you not only hire the right person but also retain them, are often the most simple.

• Give them the right amount of time in an interview • Show them a culture and workplace that is apprealing and engaging He pointed out that attracting the right staff has a great deal to do with marketing and PR and how you have to make each candidate really want to work for your business.

Interviews are key, with 65 per www.paintandpanel.com.au

LIVE 17

A day full of discussion and insights.

Fix Auto’s David Lingham talks emplyoment strategy.

MaxMyProfits managing partner Ben Fewtrell.

Grip Moto director Gary McDonald.

cent of candidates identifying poor interviews or interviewers as the reason they lost interest in the position on offer. Lingham suggested specific questions and strategies including have some else do the interview to allow you to observe the candidate more effectively.

EZI METHODS: BEN CARDY Ben Cardy updated the room on some of the issues being faced by the UK repair industry especially the windscreen companies.

ADAS recalibration is causing issues such as windscreen companies repairing customer cars and telling them to drive to the dealers - with an uncalibrated system.

SKILLS FOR THE FUTURE PWC Skills for Australia CEO Sara Caplan gave a presentation, updating delegrates on the current training procedures and packages on offer. One of the strategies is to prepare packages that allow people to move into different areas such as marine or cycling which take into account the relevant skills they already possess.

BOTH FEET ON THE PEDAL The charismatic Grip Moto director Gary McDonald was up next to talk diversification, and does he know how to do it.

Originally a spray painter with his own shop, McDonald’s cycling hobby quickly helped him realise another business opportunity.

McDonald said people would see him ride his bike into the shop and immediately notice the custom paint job it had, inquiring as to whether he could do the same for them. From there Paint My Bike was born and McDonald found a way to go from car paint repair to substantion profits for custom cycle painting. While the shop is no longer owned by McDonald, he has another lucrative business sprucing up cars in dealerships and he’s already thinking about what’s next. The presentation showed the audience that thinking outside the box doesn’t mean you have to re-invent the wheel, maybe just swap the vehicle that uses them. www.paintandpanel.com.au

MEET FREDDIE Walker Crash and Caravan Repairs director John Walker gave a great presentation about sky-driving Freddie. Freddie has been skydiving year-after-year, day in and day out. He knows everything that he needs to do to get him up in the air and subsequently back down on the ground. He packs his own ‘chute, gets on the plane and away he goes.

But one day, during a casual jump, Freddie’s ‘chute hits a drone and suddenly good old reliable Freddie is plummeting to earth. When his back up ‘chute fails to deploy - it’s splat.

Walker’s tale of Freddie showed that not having and checking your plan B can mean ‘splat’ for your future.

September / October 2017 PAINT&PANEL 33

LIVE 17

Baker explains the impacts of violent words such as smash in business.

Ben Cardy reveals some of the issues facing the industry internationally.

WHAT YOU SAID ABOUT LIVE 17

“Love the positive approach” “Great day, the speakers were engaging and made it easy to ask questions.”

“Some great ideas were provided” “Very relevant to shop owners” “Thank you for taking a fresh approach to the motor vehicle repair industry and the changes we are facing. Some hearty food for thought and discussion on the day.”

“Brilliant day. The entire team took some fresh ideas away and look forward to bringing them back to the business and making some changes - both short and long term.

“Well done - the event flowed nicely and kept the audience engaged.”

Caravans, these were Walker’s plan B, and when he didn’t secure an RFP, he was ready to launch and implement plan B immediately and his business continues to thrive.

RURAL RELOCATION Bears Group GM Steve Lozenkovski discussed the advantages of geographical diversification, opening up on the initial challenges he had when trying to expand rurally.

Starting up the the Illawarra, Lozenkovski said rural expansion seemed like an easy next step. However the rural community has a different customer and work culture. He was honest about the challenges, where his business had made wrong assumptions that rural shops would happily embrace the Bears way of business and some of the strategies he employed to overcome this.

He says it is important to look at all areas of the industry, even those outside of the regular services you provide.

THE ZONE TO AVOID MaxMyProfits managing partner Ben Fewtrell closed out the day with an energetic speech that got the crowd buzzing.

As an ex-repairer himself, Fewtrell knows all to well the pitfalls that many often stumble into. The main one? Falling right back into your comfort zone.

34 PAINT&PANEL September / October 2017

I-CAR CEO Mark Czvitkovits offers his two cents.

Bears Group GM Steve Lozenkovski talks about the benefits of tapping into rural markets.

To demonstrate he had the audience taking off shoes, swapping watches and messing up hair. The point of the exercise was not to see how far you could undress before it became inappropriate but to show that the minute you could, you went back to how you were before, as all of us did.

As a second and final game, Fewtrell asked people to think, really think, how could you diversify your business if you were forced too?

The team at Capital SMART took out the prize, five tickets to one of Fewtrell’s seminars and a bottle of distinctive bourbon, for suggesting the idea of driving lessons. Other suggestions included working on wheels, a massage service, a carsharing fleet and many more.

This was the point so many of the day’s speakers were making, you will have to get out of your comfort zone to survive the future.

Disruption will only amplify and you have to adapt, adjust, expand, diversify, re-brand or possibly even paint a bike or two. You need to think outside the box or run the very real risk of getting boxed in.

A huge thank you to our sponsors especially MTAA who commissioned Barker Brands for the presentation.

Also many thanks to Car Craft, SAPE, Car-O-Liner, CrashZone, Axalta and PPG. www.paintandpanel.com.au

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TECH TALK

WHY REPAIRABILITY IS NOT A HIGH PRIORITY FOR VEHICLE MANUFACTURERS Andrew Hooker, Thatcham's advanced repair projects manager, explains the pressures that car makers are under which mean that repairability is not top of the priority list.

THE REMOVAL OF a chief executive at a major vehicle manufacturer was reportedly met by sighs of relief by the engineers at that company. It was strongly suggested that many felt that the company had, in the recent years under his tenure, focused too much on ‘technology’ that excited shareholders and not on the core vehicle programmes.

Being a car maker is surprisingly much like being a car body repairer. You need a lean and efficient process in the workshop/ factory, and a focus on completing as many jobs/cars as you can for a defined margin to exceed your fixed costs. So when the car maker spends huge amounts of money on research and development of new technologies, that leaves less money to engineer the car itself.

Of course, to sell cars the car maker cannot cut back on the features that attract the customers to buy, though they will drive hard bargains with their suppliers, but money and resource for less visible aspects may be restricted. Support for the hard-pressed teams working to develop repairability and data is one such area. With the focus on reducing emissions or improving fuel consumption, more gadgets and features for the customer, and yet still meeting crash requirements, repair is perhaps not as high on the agenda as we’d like it to be.

It is not easy to engineer a modern car. Customers want a big car with lots of space. Without careful engineering big can mean heavy. Heavy means more power required to move it so bigger engines, which can, of course, add weight. A heavier car with a heavier engine needs stronger, and heavier, suspension. And, of course, in recent years the many additional features we expect in our cars as standard have added further weight.

We all know that Ultra-High Strength Steels (UHSS) are lighter than milder steels, so this is why we’ve seen such an increase in these in car bodies. Where possible a material is supplemented with a higher grade that can make each component just that little bit lighter and stronger. This can’t be done everywhere as these UHSS are stiff as well as strong, so not suitable for crumple zones at the front and the rear of a car. If you want to make these areas lighter, aluminium is a better bet as it is lighter and deforms in a more predictable way.

Of course, you can also use aluminium and higher strength steels for suspension and steering components too, further reducing weight, and the stiffness makes for better agility and handling. You can also thin the material down, in key areas where the strength requirements are not as great, so that you have a number of thicknesses along a single panel.

But it gets complicated. Using a stiffer and thinner material may well result in more engine or road noise intrusion. And adding soundproofing material may cancel out the benefits of using the lighter, and probably more expensive, material. This is one reason we have not yet seen great use of carbon or glass fibre materials. The weight distribution across the car body may 36 PAINT&PANEL September / October 2017

also not be balanced and so a heavier material may be used to rebalance the vehicle. This is sometimes seen in aluminium intensive vehicles, with steels used to resolve the weight distribution issues.

Perhaps the biggest issue for us in repair is that the joining of these stiff, ultra-strong materials, can need some big interfaces between the panels or overlapping of panels in locations that do not make replacement easy. And short sectioning is also not possible with reinforcements and panel overlap. This often means intrusive, expensive and uneconomical repair.

There can be solutions that make the car more repairable and less likely to be written off. But these solutions take time, and time is cost. With focus on competitive development of so many exciting new technologies and services, it is hardly surprising that budget for repair is not a priority.

At Thatcham Research we can and do try to support repair by carrying out much of the investigation work to find alternative replacement or sectioning procedures. We use the vehicle manufacturer’s own engineering strategy as a basis; joining, consumables, sectioning parameters. In this way we are working solutions most likely to be successful and agreeable to the vehicle manufacturer. We’re constantly engaged with the manufacturers, discussing and agreeing these solutions, though some are more engaged and aware of the benefits of this than others. But we have continually kept our doors open to them, offering our help whenever possible to ensure cars can be safely and correctly repaired.

Where we can we work ahead of the start of production of a vehicle, so that replacement and repair solutions can be applied with minimal cost by the manufacturer. Sadly not everyone realises the benefits of this. But, as demands on research and development budgets grow and technical development continues, we shall keep our doors open and remain available to every opportunity to develop better repair procedures so that we can repair cars rather than write them off. www.paintandpanel.com.au

NORTON AND SAINT-GOBAIN - PROUD SUPPORTERS OF PAINT & PANEL'S BODYSHOP INNOVATION AWARD 2017.

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AUTOMOTIVE SOLUTIONS

OPINION

HOME GROWN OR SKILLED MIGRANTS? After our recent report on international workers in the automotive repair, we asked you for your thoughts on the matter. The results are in.

IN OUR MAY/JUNE issue of Paint & Panel we examined the impacts, opinions and changes surrounding the abolishment of the 457 skilled worker visa.

The Turnbull Government decided that it would no longer allow workers, under certain employment categories, to obtain permanent residency if they came to Australia to bridge a skills gap.

Many professions were slashed from the skills list - from goat farmer to prison officer, archaeologists to zoo keepers, in all, over 200 jobs were scrapped.

For the repair industry, the ditching of vehicle painter has caused controversy, although panel beater did make the cut.

We've had comments, calls, and posts, all offering differing opinions on how this will impact the way the industry and whether it is a blessing or a curse.

We launched a survey that offered the chance for everyone to have their say.

The first question, 'how do you feel about importing tradespeople to Australia?' offered participants three possible answers:

1. The new system where only panel beaters can come in for a maximum for two years is fine.

2. We should be able to go back to the old system and import paint and panel professionals with permanent residency options.

3. We shouldn't import industry technicians from overseas, we should focus on recruiting and training Australians and then there would be no shortage.

The overwhelming majority (64%) believed that the decision to remove the option of permanent residency was the right call by the Government, as many believe training local workers was vital to the long term health of the industry.

Just 34 per cent of you thought we should return to the previous system.

However, none of you thought the current short-term, two year, visa was suitable for the industry.

There was an option to leave a comment and many of you did, and we thank you. Here are some of your comments.

HOME GROWN TRAIN OUR OWN? “Support TAFE and keep TAFE strong. By employing apprentices and training apprentices we will have a highly skilled work force able to repair vehicles of the future.”

“Teaching boys can be a great waste of time and effort. I have had two of them that quit at the end of third year. They will not be tradesmen.”

“The answer is a combination of ‘qualified’ skilled international workers and a good system for training apprentices, with incentives for employers. Any international workers should be from countries that have a high quality training system and a properly regulated industry.”

38 PAINT&PANEL September / October 2017

“Almost all 457 workers I have seen have an extremely limited skill set, doing sub- par work at best. This seems to be the preferred option for the big national repair organisations, as cheap labour lowers wage rates for local skilled technicians.

It seems that collaboration between big national repairers (not all) and insurers is sending an already dismal occupation further into decline.”

www.paintandpanel.com.au

OPINION

“Learning the trade is something and learning how to work is something else. Shops need reliable and hardworking skilled immigrants to teach and show the kids not just the trade but mostly how to work and how to be reliable.”

“We should be training our industry for the future right now.

We currently have 29 apprentices and plan to triple this next year. However it takes three to four years to achieve a trades qualification, and there is a shortage right now which can’t be filled by training today.”

“I spent over $20,000 in advertising over the last 10 years trying to find a suitable painter for my restoration/smash business. We employed dozens of local painters but not one was up to the job with skills, and some had the worst attitude as well as having no skills.”

www.paintandpanel.com.au

“With the skills shortage we are facing in the industry and the reluctance of young people to enter the trade, overseas workers are a vital contributor to the ongoing viability of smash repair businesses.”

“It’s a job that generally does consist of big hours, years of learning and most of all the toll on the body. More recognition for what we do would go a huge way. Let’s face it, money is the biggest factor in any person’s life. So pay accordingly. This industry needs a change and only people’s voices will do it.”

“The training systems in Queensland should not have been privatised. The kids don’t get taught something unless their workshop teaches them. I have seen fourth year apprentices, and even tradesmen, that can’t repair anything and purely strip and fit because that’s all their shop trained them to do.”

“It’s clear the government has failed us with their incessant push to higher education.

Not everyone is built to work in the white collar segment and there is definitely no shame working in the blue collar. Maybe bring back tech schools.”

September / October 2017 PAINT&PANEL 39

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IBIS WORLD

IBIS UK REPORT AI, data thefts, electric vehicles, consolidation, Britex – the UK market has a myriad of issues repairers there are having to deal with. Report by Bodyshop editor Mark Haddaway. investigations into data leaks, including those of bodyshop THE INDUSTRY IS changing so rapidly that every sector is facing owners and ex-employees. immense challenges at the moment, but these can also be turned New EU data protection legislation is due to come into force in into opportunities.

May 2018, when the General Data Protection Regulation (GDPR) Electric vehicles present both a solution and a problem. The replaces the Data Protection Act 1998. GDPR guidelines will slow and steady uptake of EVs and other alternative fuels has strengthen an individual’s data right and bodyshops failing to damaged oil prices. It is also a chicken and egg situation. Until comply could face fines of up to four per cent of turnover.

EVs become mainstream, investment in infrastructure and The shift in motor insurance has also continued apace, with training for technicians is likely to remain restrained. the number of telematics-based policies increasing by 25%. This Conversely, without infrastructure and skills, EV uptake will is partly down to the number of tech-savvy start-ups, many of remain sluggish. That’s created a situation in the UK where only whom have jumped the queue by introducing flexible, bespoke one per cent of technicians are trained to operate on EVs. policies targeting specific audiences.

Other notable opportunities can be found in fast-track and Among the more successful ones, pay-as-you go insurer Cuvva mobile repair. The widespread introduction of software such as has recently added monthly subscriptions to its package, while Automatic Emergency Braking (AEB) and Advanced Driver Assist app-based Lemonade promises policies Systems (ADAS) is resulting in fewer in 90 seconds and compensation in three collisions, while the use of carbon fibre, “It is also a chicken and egg minutes. high strength carbon fibre and aluminium situation. Until EVs become Mobile phone network operator O2 in-car construction means more collisions launched its first motor insurance result in write-offs. mainstream, investment in policy in February, underlining the As a result damage is more often infrastructure and training potential of big tech firms muscling in cosmetic than catastrophic, and the for technicians is likely to on insurance in the future. crash repair industry has spawned a Meanwhile, the trend among key car rapidly-expanding subsection to cater remain restrained. ” manufacturers to form close for these types of repairs. SMART partnerships with tech companies is bodyshops and mobile repairers, some paying off , and last year was a milestone in the UK for the owned by traditional bodyshops and some independent, have development of autonomous vehicles (AV) with a number of continued to gain traction this year. public trials taking place. There are also plans to introduce platooning trials on British motorways.

MARKET TRENDS A growing concern among bodyshops is the security issue around its data. The Information Commissioners Office (ICO) has EMERGING BODYSHOP TRENDS undertaken a series of investigations in recent months, The trend towards greater consolidation within the bodyshop uncovering incidents of large-scale data theft involving sector has not slowed. The largest group in the UK, Nationwide, bodyshops, insurers and claims management firms. has followed up last year’s acquisition of the second largest Royal Sun Alliance (RSA) was fined £150,000 after a database group, DWS Automotive Repair Solutions, by continuing its containing the details of nearly 60,000 policyholders was stolen. aggressive expansion policy. In February it bought insurer RSA’s Oracle Insurance Brokers was wound up just days before it had to six quality repair centres, increasing its capacity by 30,000 jobs pay a £30,000 fine for sending 136,000 unsolicited texts, while a year, and now boasts a network of 124-wholly owned the ICO broke new ground in May by fining Keurboom bodyshops as well as eight rapid repair centres – and 10 more Communications a record £400,000 for making nearly 100 million planned to come on board this year. On top of that, it counts 160 nuisance calls. Various homes and smaller businesses in the repairers in its secondary network, manages 83 mobile repair north of England have also been raided as part of ongoing vans and 10 commercial mobile repair vans.

42 PAINT&PANEL Month / Month 2000

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IBIS WORLD

FACTS & FIGURES

Population: 65 million (ONS) GDP: £2.2trn (World Bank) Full driving licence holders: 38M (DVLA) Total vehicle parc: 37.3 million (DfT) Average vehicle age: 7.8 years Total new road vehicle sales: 2014 – 2.58 million 2015 – 2.63 million 2016 – 2.69 million Number of alternative fuel vehicles registered: 2014 – 248,000 2015 – 310,000 2016 – 388,000 Number of reported road collisions per annum: 5 million (ONS) Number of collision repairs per annum: 4.2 million Number of vehicle write-off s per annum: 16% Number of motor insurers: 264 (Defaqto) Top three motor insurers by number of vehicles insured: 1 – Aviva 2 – Direct Line Group 3 – Ageas Average motor insurance premium and excess/deductible: £781 (Confused.com) Annual cost of motor insurance fraud: £2bn (AA) Insurance approved collision repair networks: Yes Insurance owned collision centres in operation: Yes Vehicle manufacturer approved collision networks: Yes Vehicle manufacturer owned collision networks: Yes Accident management companies active: Yes Networks in operation: Yes Total number of collision repair operators (all body repair facilities/types): 4,520 (bodyshop) Number of collision repair centres (static sites dedicated to collision repair): 3,318 (bodyshop)

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. Natiowide Crash Repair Centres (125 sites, £316m t/o) 2. Gemini ARC (19 sites, £40.1m t/o) 3. Apollo Motor Group (15 sites, £28.4m t/o) Average cost of repair: £1,336 (bodyshop) Average cycle time of repair (key-to-key): 6.9 days (bodyshop) Average labour rate: £33.11 (Audatex – 2016, H1) Mobile collision repairers in operation (eg panel repair/s within mobile rig/booth): Yes Number of mobile collision repairer operators: estimated 500 Mobile SMART repairers in operation : Yes Number of mobile SMART repair operators: estimated 2,500 Other vehicle damage repair facilities/models in operation: Semi-permanent repair units Total accident repair market value: £4.7m 44 PAINT&PANEL September / October 2017

Meanwhile, Gemini ARC is the leading independent multi-site group with 19, Apollo has 12 sites and Balgores 11, and there are a cluster of groups with five to 10 sites. Several dealer groups also have multi-site operations, the largest of which is Arnold Clark with 28. Perhaps the greatest movement though, has come from franchise operator Fix Auto. From 74 bodyshops in May 2006, it now has 90 with a further 10 undergoing integration.

Among other trends, bodyshops have increasingly been placing customer service at the top of their list of priorities. This has manifested itself in a number of noticeable shifts in practice. For example, there is evidence from a number of suppliers that more bodyshops are bringing vehicle recovery in-house rather than out-sourcing it, ensuring they are able to satisfy customer conveniently, while there has also been a continued increase in the digitalisation of their practices, from initial image capture to the use of video in marketing and brand awareness.

INSURER INFLUENCE Insurers continue to hold sway, but there have been clear signs in the last 12 months that their influence is under threat. The growing complexity within cars, and the need to repair them in line with approved methodology, is drawing manufacturers into the realm of insurance; Tesla already provides its own insurance while Volvo and BMW are among those who have said they will accept full product liability for their autonomous vehicles.

Also counting against insurers are premium prices, which have followed an upward arc in the last year. The industry has blamed the rise of Insurance Premium Tax (up to 12%) and the unexpected discount rate change (from 2.5% to -0.75%) for steepling premiums, adding also that higher cost of repairs and the continued abuse of whiplash claims have inflated prices.

However, industry bodies such as the NBRA have refuted these figures on repair costs and whiplash claims put forward by insurers, saying both are steady or decreasing, while the Association of Personal Injury Lawyers (APIL) said in February the insurance industry faced a crisis of identity. It argues that personal injury reforms, intended to reduce small claims and introduced by the government after intense lobbying from insurers, could www.paintandpanel.com.au

IBIS WORLD

of their approved networks. Countering this argument though, are those bodyshops who are giving up their pursuit of badges, claiming it’s no longer financially viable.

IMPACT OF NEW VEHICLE TECHNOLOGY

significantly disadvantage the people insurers are meant to protect.

But while insurers’ role in motor is changing, they still wield power, as their successful lobbying of government proved, and in many cases they are increasing their influence on crash repair.

VEHICLE MANUFACTURS

In the last year ADAS in particular has accelerated beyond all expectation and some sections of the crash repair sector have struggled to keep up. No longer the preserve of high-end cars, upwards of 80% of all models introduced to the UK market today include ADAS technology. Some models of car have 12 and more ADAS solutions embedded, which has raised the complexity of repairs. This has sometimes left bodyshops in an awkward position, trying to satisfy the safety demands of manufacturers while at the same time justifying additional costs to insurers.

ADAS, and the subsequent need for correct recalibration, has also exacerbated the gap in knowledge in the industry.

Auto Windscreens has pledged that all its repairs are now sent to the dealer network to guarantee safety. Others have taken the route of investing in equipment to provide a solution in-house.

New solutions around first notification of loss are also enabling the quicker and more accurate triage of jobs, identifying the right solution for the right repair, while integrated technology and new ‘consumer-based’ job costing platforms have emerged to streamline the process. Artificial intelligence (AI) is in its infancy still, but the industry is already looking for ways to use it successfully as part of a continued drive on efficiencies.

NEXT GENERATION

A lack of skilled technicians has been one of the greatest challenges facing the industry for a number of years. The figure of 5,000 critical Manufacturers are trying to manage the repair of their vehicles in jobs unfilled remains true, and most within the industry accept the increasing numbers. Brand reputation is key and failure within problem is only deepening as technology leaves skills behind. their cars, regardless of who is at fault, will almost inevitably be However, a number of initiatives to redress the balance have laid at their door. One way they’re tackling this is through gained traction in the last 12 months. AutoRaise was officially increased training and knowledge sharing. The large launched in December as the charity for the crash repair industry, manufacturers have in excess of 1,000 technicians within their and has since held a number of ‘industry network. Training them all ahead of showcase’ events around the country to every new launch is impossible, but Countering this argument attract new talent. Bodyshops have they believe ensuring the correct repair bought into it, lining up to host methodology is available – to all though, are those bodyshops AutoRaise evenings. technicians, not just those it has who are giving up their Apprenticeships in general have come certified – is an effective first step. To pursuit of badges, claiming it’s under sharp focus in the last year, with further spread the message, Ford, Volvo the government’s Apprenticeship Levy, and VWG have held a number of product no longer financially viable. introduced in April, targeting an awareness days for VDAs and insurers. additional three million apprentices by In some cases, manufacturer processes 2020. Nationwide has pledged to recruit another 250 apprentices this have also evolved to simplify repairs where possible, with many year, Gemini says it will recruit 40 by December, and numerous other producing and replacing entire units rather than individual parts. organisations have announced record apprenticeship numbers.

STANDARDS IN OPERATION

BS 10125 remains the industry standard, but has been under much scrutiny by the industry at large for its perceived lack of clout.

Everyone agrees the standard has been of major benefit, but some now suggest it needs a major overhaul.

Manufacturers are also having to pay much greater attention now to Euro NCAP, ADAS is now a prerequisite for any model to achieve a five-star rating. In line with this, while not an official standard, a new calibration Code of Practice was introduced last September by a Thatcham Research-led industry group.

For bodyshops, the standards that matter equally, if not more so, are those set by the manufacturers themselves. While these are independent of BS 10125, bodyshops need to comply to remain part www.paintandpanel.com.au

TRENDS OVER NEXT THREE TO FIVE YEARS Brexit is an obvious influencer, although at this stage it is not possible to say what effect it will have. Artificial intelligence (AI) is also going to transform the industry. Beyond insurance, the benefits to bodyshops will be felt more in first notification of loss, damage assessment, triaging, and parts ordering.

A KPMG’s report found that the UK economy could benefit to the tune of £74bn by 2035 – that’s about £6.9bn a year – if it successfully embraces digitalisation.

For bodyshops, that means more training, training of different skills, and an influx into the workforce of young people who are more ‘techie’ than technician.

September / October 2017 PAINT&PANEL 45

TECH TALK

DON’T COME UNGLUED ON PROCEDURES I-CAR CEO Mark Czvitkovits ponders on the consequences of ignoring OEM proceedures.

FOR THOSE KEEPING abreast of international news you will often see reports from Europe and the USA and the state of the industry across the globe. What is fascinating is that whatever market we look at, the issues are the same. There are disruptors across the globe in every industry and of course there are a few individuals who ignore the change and believe that their expertise overrides the change required.

Which brings me onto the subject of adhesives and its use in the smash repair industry; the question is whether it is being used for the correct application?

If we look at how vehicles are constructed we can see that most are constructed using spot welds for panel attachment, however there are play a huge role in challenging even the most minor collision some new models which combine the spot weld process with repairs, so the vehicle protects the occupants in the way the adhesive and even combine rivets with adhesive. What should vehicle was designed too and not change the structure during be taken in to account with vehicle construction is the the repair process. rigidity of the structure that the manufacture is engineering A major part of repairing vehicles today is to understand the in the construction to protect the occupants in a collision. structure, understand the engineering of collision energy Spot weld spacing and utilising differing materials plays a management built into the structure then repair the vehicle so major role in collision energy management to manage the the structure performs the same way in another collision. OEMs energy being developed. produce procedures to ensure the integrity of their vehicles is If an OEM repair procedure states that a panel is to be replaced retained after a collision to ensure the same performance levels with spot welds but makes no mention of adhesive, this is the in any subsequent collisions. correct method to follow. With the vast range of materials and In Australia we are still coming to grips with the changes vehicle designs currently existing, there is no one method for all and the dramatic affect this is having and the best practice will always be to on business, staff and customers. check before the repair is estimated. This “Adhesive does have a The challenge for our industry today is ensures the entire process is understood by to really focus on the longevity and what all involved in the repair process, place in the collision is required. estimator, assessor, technician and the repair industry but only Do you plan for short term returns or owner receives a vehicle that is repaired if the OEM repair long term returns on your business correctly and retains its safety features. investment? Most financial experts will Adhesive does have a place in the procedures contain it.” advise that the long term gains will far collision repair industry but only if the outweigh the short term ones.

OEM repair procedures contain it.

An investment in your biggest asset (staff) will require a large Technicians can be trained in the process of applying adhesive initial step and the rewards may not be there in the first and even obtain a certification in adhesive application but this instance, but as the knowledge within your business grows, training does not give a technician, estimator or assessor the so will the return on your investment. approval to override an OEM procedure.

Correct repair decisions, quality work, communication and If a technician proceeds to replace a panel with adhesive alone customers that will advocate your business as true professionals or combining it with spot welds, is the structure going to react will deliver real long term results. It is always great to see the the same in a subsequent collision? If spot welds only are used but number of collision businesses today that are investing in the the welds are spaced too close together or too far apart, the area future and being rewarded by their will differ from its original design specification and the collision acknowledgment in the Paint and Panel energy management will also be affected. awards. The dedication to continuous It is vitally important to follow the manufacturer repair improvement means that these repairers procedure when repairing any vehicle, no matter how small or will not be left behind. insignificant the repair may seem. Advanced Driver Systems also 46 PAINT&PANEL September / October 2017

www.paintandpanel.com.au

SUPPLEMENTARY

THIS IS WHY ACQUISITIONS ARE GOOD FOR BUSINESS Finance guru Brad Mewes of Supp-co.com walks you through the benefits of acquisitions.

LAST ISSUE, WE looked at the four key reasons acquisitions fail. What we didn't cover was, if they can be achieved, what benefits do they provide?

Acquisitions get a bad rap. Acquisitions are described as risky.

Acquiring companies are portrayed as evil raiders and titans. Tales of highstake chest thumping negotiations between power brokers fill our conversations. Stories of lay-offs, firings, law suits and forced relocations ensue. But even with all of the negatives, I know that acquisitions are good for business.

ACQUISITIONS ARE MISUNDERSTOOD One of my favourite pastimes is to read about the great deals of our times. Carl Icahn’s hostile takeover of TWA. KKR’s acquisition of RJ Reynolds. Ron Perelman’s takeover of Revlon. And of course, the ongoing saga between PPG and AkzoNobel.

These types of high profile deals are indeed often dominated by larger than life raiders, huge egos, lay-offs and forced liquidations of once prized corporate assets. But these types of deals represent a small minority of acquisitions. And the rationale for these types of deals are often very different compared to that of a typical privately held company.

IMPROVED COST STRUCTURE

GREATER DIVERSIFICATION. DECREASED RISK

Portfolio Theory (i.e. diversification) effectively states that a diversified portfolio of stocks lowers risk while increasing return when appropriately diversified (and yes, I’m massively simplifying into one sentence one of the most influential "Acquisitions allow a concepts in finance over the last century). company to leverage A business can diversify in a similar way. both cost and revenue Acquisitions are good for diversification.

An acquisition-based growth strategy synergies, leading to provides diversification benefits to the increased cash flow." business, lowering non-systemic risk while increasing returns.

Acquisitions are good if you want to improve the cost structure of your business.

One of the primary benefits of engaging in an acquisition-based growth strategy is an improved cost structure. The improved cost structure arises as a result of building economies of scale, leveraging purchasing power, improving efficiencies and other business performance, or simply rationalising underutilised business assets.

These cost synergies are often the cornerstone of the investment thesis and considered the most “likely” of benefits to be realised by the acquiring company. But beware, simply because cost synergies have been identified does not imply they are guaranteed to materialise. Some deals may actually have negative synergies, depending on the industry as well as the specifics of the individual companies involved in the transaction.

INCREASED CASH FLOWS Acquisitions are good if you want to increase your cash flow. A strong allure of pursuing acquisitions is simply to build a larger empire. And while the desire to grow large for the sake of empire building is not a recommended business strategy, the ability to 48 PAINT&PANEL September / October 2017

sustainably grow cash flows in a systematic way very much is.

Acquisitions allow a company to leverage both cost and revenue synergies, leading to increased cash flow. When negotiated and structured appropriately, acquisitions can provide a positive stream of cash flows day one, something brownfield and greenfield investments are unable to provide.

HIGHER VALUATION Acquisitions are good if you want to increase the value of your business. Aquisitions provide a proven way to increase the relative valuation of your business. Growth through acquisitions provides a company a way to not only grow cash flow, which results in a higher valuation, but to also increase the multiple on which these cash flows are valued. While there are a lot of factors that influence valuation and multiples, the simple fact remains that, all else equal, a larger company will command a larger multiple than a smaller company. Put differently, a company with $10 million in EBITDA will have a higher multiple than a company with $1 million in EBITDA (shoot me an email and we can have a discussion as to why that is).

These are just a few of the reasons why acquisitions are good for business. There are lots of other reasons. www.paintandpanel.com.au

LONDON CALLING

PROFIT? DOES IT MAKE YOU STICK YOUR HEAD WHERE THE SUN DON’T SHINE? It is difficult to talk to people when some of them have their head about 18 inches up their own colon, Chris Oliver from Fix Auto Dagenham complains. even been lucky enough to have shared data with Australian repairers and there were many things to learn there, too.

Sadly, I’ve witnessed repairers losing money on individual jobs and not realise it until they had the benefit of peer reviews. But even well run, tightly organised shops struggle to get across a line of reasonable profit right now in the UK. You’ve read my comments about the lack of young people being attracted to our sector. I’ve spoken at length about the Chris Oliver rise of technology, as an industry we are a long way behind that curve. Then there is investment in our current teams for IS IT RIGHT TO RIP PEOPLE OFF? long term sustainability.

People often raise the question, what a reasonable profit is, It won’t be long before your conference season is upon you. of which there can be no right answer. Everyone has their own Isn’t about time real conversations started taking place about view. Is it right to rip people off? The only answer can be, no. these issues? We have a couple of choices. Clear and stark. We But what is the definition of rip-off? It is not right to con can put our head between our legs, hum Jerusalem and hope anyone in the ordinary sense of the word that we’d all agree on, these issues go away when we stop humming. Try it. for example, to charge for things palpably not completed.

Or we can get our fingers out and start a dialogue. Who’s up for it?

But is it okay to charge to blend a panel and then not do it?

Talking of grown up conversations, one last thought. I was at One argument I’ve heard is, yes. You might charge blend 'time'. a conference earlier this year where these issues were being That could, for example, include the cost for time spent mixing raised. One senior executive approached me, “when I used to run and matching and discarding several paint mixes. It could my own bodyshop Chris…,” he started and went on to educate include utilising the time and years of experience of a paint me about cars designed in the 1950s and technician. He will be outstandingly repaired in the 70s. I must have switched efficient, but how do you charge out his “If I’m paying a top quality off as I was aware of a silence filling the time? Who pays for that experience, skill air between us as he stopped talking. and craftmanship? team member $60 dollars “Here’s an idea,” I suggested, “there is a Some reading might argue this is just an hour for the ability to job at the local brewery for an sophistry and a blend is a blend. If you go edge to edge yet I’m administrator, why don’t you apply and charge and don’t do it you are a crook. I’m see if you can organise a party”. My minded to agree but is it actually as being paid $40, just who phone rung just as he was responding. It simple as that? If I’m paying a top is being ripped off?” was someone telling me to grow-up. quality team member $60 dollars an hour Keep those emails and calls coming. for the ability to go edge to edge yet I’m being paid $40, just who is being ripped off? I didn’t say I have the answers, but isn’t it time we had a grown up discussion as an industry to explore models of business that worked two decades ago but are now about as appropriate as a pork chop at a bar mitzvah?

LET’S BE CLEAR, the only purpose of any business is to provide a return for its shareholders. Anything else is fantasy. Conversations about social good and contributions to the local economy are stretching into cloud cuckoo land. These are great by-products of great companies.

UGLY BABY SYNDROME Do we all understand how profitable, or not, our individual businesses are? Some of us, I know, are reluctant to reach out and ask for outside assistance, ugly baby syndrome, possibly.

No one wants to be told they have an ugly baby. But if we take the bull by the horn and jump in we may find we are too close to see clearly.

You’ll be aware I am a part of formal network in the UK. But prior to that, I was part of many similar smaller informal networks and still am today. We meet regularly and share data. We benchmark the granular details of our business. From how much we pay for grinding discs, to parts margins through to rental costs and bigger numbers. It is a eye opener. In recent months, I’ve 50 PAINT&PANEL September / October 2017

www.paintandpanel.com.au

CONTENTS 52 Best of the industry 58 Regional winners Western Australia 64 Regional winners South Australia 70 Regional winners New South Wales 76 Regional winners Victoria 82 Regional winners Queensland 90 On the road 92 Clever stuff

PLATINUM

SPONSORED BY

GOLD

SILVER

ASSOCIATIONS & GROUPS

2017 PAINT & PANEL BODYSHOP AWARDS PLATINUM

GOLD

SILVER

ASSOCIATIONS & GROUPS

SPONSORED BY

CELEBRATING OUR BEST Judges Sam Street and Neil Powell found innovative, positive, thriving autobody repair businesses across Australia. All our winners have either adapted to, or even influenced market conditions.

THE 2017 JUDGING tour was a breath of fresh air in terms of positivity about our industry. There are more and more cars on the road, undoubtedly fewer repairers which means at the moment everyone we encountered was busy.

Charles Darwin is credited as saying: “It is not the strongest of the species that survives, nor the most intelligent that survives.

It is the one that is most adaptable to change.”

What we found out in the marketplace was clear evidence of strength, intelligence and adaptability. Those we met who have a Capital SMART, Gemini or other mega shop on their patch for the most part have decided, wisely, not to compete and adjusted their business models to specialise in the work the consolidators don’t want, or found other insurers to work for outside of the big two. Some have worked on building third party or private work, others have diversified offering a range of services such as mechanical or wheel services or specialising in recreational vehicles or certain car marques.

It was interesting to encounter a number of owners who had downsized their businesses and yet were making more profit.

What all our winners have in common is that they run a clean, safe businesses with plenty of emphasis on keeping and developing staff and offering smart, modern customer facilities and services.

NEW CATEGORY This year we created a new category for dealer-owned autobody repairers and large MSOs, sponsored by Glasurit. We did this because both of these have a different business model behind them. We visited several Capital SMARTs for the first time on the judging circuit and we’re pleased that the group is taking part in the awards.

It’s a really impressive organisation and without doubt has been a significant industry disruptor. Now, love ‘em or hate ‘em you can’t deny that Capital SMART has also been a catalyst for some positive changes in the industry. By adopting new, innovative methods of repairing cars, presenting itself professionally with its consistent corporate livery - where SMART has led, many have followed and improved their business outcomes because of that.

Mirage is a family business that has invested in refurbishing and reinventing itself and, well, wow!

2017 PAINT & PANEL BODYSHOP AWARDS PLATINUM

GOLD

SILVER

ASSOCIATIONS & GROUPS

SPONSORED BY

TOP LEFT: Garry and Dan Maher from L&M; LEFT: Captial SMART has driven some positive changes; RIGHT: Brett Evans has thrived by down sizing.

SO CLOSE

Another close runner up was Coorparoo Paint & Panel. We admired Brett Evans’ intelligent and adaptable business approach.

For every winner each award cycle there are excellent He was one of the owners who had downsized. He had run a large bodyshops that could have won another year and will almost rapid repair operation but took a brave step off the hamster wheel certainly do so in the future. It was these judges first visit to and moved into a wealthy suburb with a much smaller operation. A L&M Smash Repairs in Seven Hills. The first repairer in NSW lot of his work is private and on some really tasty pieces of to achieve I-CAR Gold status, they may have to expand the motoring metal. His business is more profitable and shop just to have more wall space for their I-CAR “It is not the strongest of the he is much happier and less stressed – well played. certificates. This third species that survives, nor the generation shop combines A WORD FROM OUR SPONSORS most intelligent that survives. Of course the Paint & Panel Bodyshop Awards the latest technical know how with family charm, wouldn’t exist without the generous support of It is the one that is most stunning memorabilia and a our sponsors. All the sponsors are delighted to adaptable to change.” genuine passion for the support a program and event that celebrates and work. Dan Maher sees the acknowledges the hard work, dedication and investment in training as an investment in the future of his innovation that this industry is rich in. business. As cars become more complex, he realises that the Platinum sponsors Axalta Coating Systems also sponsor the early bird will catch the worm – those who are ahead of the Sustainability award. Managing director Steven Brett, said: “The pack will secure the work. He is also at one with social media Paint & Panel Awards is a unique and important event for the and the complicated world of SEOs to make sure the company’s industry. Axalta welcomes the opportunity to support the website delivers new customers to their doors. awards and honour the talented owners and managers of repair Mirage Spray Painters and Panelbeaters in Perth is a great operations around Australia.” business that has recently invested in expanding the repair James Frape of Platinum sponsors Compass Claims said: “The facility and installing a brand new paint shop. The frontage is winners work tirelessly to make their shops stand out and the gala cutting edge modern as is reception and there’s a gorgeous awards ceremony in the evening is a great event that people need customer inspection area worthy of the many prestige cars and to get behind and show their support. We would love to see many their no doubt picky owners that pass through Mirage. The fit more shop owners there as it’s a great opportunity for the industry out was relatively new and the team are still working on the to get together in an informal setting to celebrate the many panel shop - we reckon they will be hard to beat next year. successful businesses and people that this industry produces.”

54 PAINT&PANEL September / October 2017

www.paintandpanel.com.au

2017 PAINT & PANEL BODYSHOP AWARDS PLATINUM

GOLD

SILVER

ASSOCIATIONS & GROUPS

SPONSORED BY

Gold sponsor Mercedes-Benz said: “Mercedes-Benz is proud to support the Paint and Panel Bodyshop awards, and the panel shops across Australia that have displayed the highest quality standards for autobody repairers. We recognise the importance of superior repairs done by qualified technicians and using genuine parts, always ensuring that customers receive nothing but the best."

WHAT DID WE LOOK FOR? Winning shops don’t have to be glamorous these are the basics that we look for.

• Comfortable customer facilities • A clean, tidy reception • Good signage • Dedicated estimating space • Clean toilets • Equipment • Investment in the latest repair technology • Organised equipment storage • Organised parts area • Robust training schedule for correct use of equipment to achieve repairs to manufacturers’ specifications

• Staff welfare • A clean, healthy work environment • Good OH&S procedure • Staff training • Acceptable staff facilities • Extra credit for water recycling, energy efficient equipment, solar installation and other green initiatives • A website

WHAT SCORES EXTRA POINTS? • Having a coherent vision for the future of the business • Demonstrating how the business has been adapted to meet current challenges • Innovation in business practice • Involvement in the industry - trade associations or industry business groups • Positive attitude towards the industry • Marketing program which connects with customers and work providers, social media involvement • Investing in the next generation • Modern marketing methods

Mirage's rather fancy new Spanesi paintshop.

56 PAINT&PANEL September / October 2017

www.paintandpanel.com.au

PartsCheck would like to congratulate all our members who are winners of the Paint and Panel Autobody Repairer of the Year Awards.

B & A Motor Body Repairs Best Large Shop, VIC Damage Control Accident Repair Centre Best New Shop, WA

Eblen Collision Repairs Best Large Shop, SA

Paull and Warner Accident Repair Centre Belmont Best Boutique Shop, WA

Eagle Smash Repairs Best New Shop, QLD

J & M Smash Repairs Pty Ltd Best Large Shop, WA Hanson Road Crash Repairs (New User) Best Boutique Shop, SA We are thrilled that 11 of this year’s winners choose PartsCheck every day as the timesaving, business solution in their operation.

Congratulations!

www.partscheck.com.au find us on

Maxbutts Body Works Best Medium Shop, QLD Sommerville Smash Repairs Best Large Shop, QLD Smashtec Best New Shop, NSW Len Hollis Repair Facility Best Medium Shop, NSW

PH: 07 3376 9474 info@partscheck.com.au

2017 PAINT & PANEL BODYSHOP AWARDS

BEST NEW SHOP WA

DAMAGE CONTROL

SHOP STATS Size: 1200m2 Staff: 16 Type of repairs: All types Avg car repaired per week: 35

Eyewateringly lovely! The building has fantastic kerb appeal for the 33,000 potential customers who drive past every day.

Anthony Arnold has achieved his dream shop with Damage Control in Forrestdale, in fact he's pretty much achieved everyone's dream shop.

TRAINED IN BOTH painting and panel beating Arnold started out with a mobile van servicing car yards. Four years after he set up his own premises, in 2007, Arnold won best boutique shop nationally – blowing away the judges with the business' spotless presentation and smart working practices.

Damage Control mark 2 had only been open for a week when we visited but I'm quietly confident if we go back next year it will look just as good. Arnold always wanted to design his own dream shop from scratch. Before undertaking the task he really did his homework. Firstly the location is important, right on a main road with 33,000 cars crawling past every day in a rapidly growing suburb. The bold orange and black livery delivers an eye-catching curb appeal. The business also offers full mechanical services and retail trye fitting – as attested by the tyres in the parking lot and inside reception. Handily, Damage Control can be accessed from both the front and rear for customer convenience.

About the reception area – simply stunning. Beautifully designed, uber modern – another one that would put many decent hotels to shame. The stylish toilets also cater for disabled customers. Upstairs there is a fabulous boardroom for training 58 PAINT&PANEL September / October 2017

and meetings with work providers and suppliers and a further suite of beautifully decorated offices and a kitchen. The boardroom has a screen providing data for the 1Q1 workshop management system which Arnold piloted.

Next to reception is a spacious customer inspection area with roller doors into the workshop.

The workshop is just as stunning as the rest of the building.

The wide orange driveway and Lowbake drive-thoughts with orange detailing give it a cheery atmosphere. The huge windows let in plenty of natural light and offer great sky views for the team. There's a mechanical bay and what looks like a Car-0-Liner mini showroom. Hats off to Mark Williams and the Lowbake team – the prep areas and booths work beautifully, look gorgeous and they would be very happy if they could see how spotless the paint mixing room is.

What we loved about Arnold is his total passion and excitement about the business, he glows with pride when he talks about it. An MTA and Car Craft member he's also involved with the repair and local community as well as in the motor racing as he's a true rev head.

We couldn't pick a single fault with this one.

POWELL’S COMMENTS Well thought out, beautifully presented. Great workflow, great enthusiasm and great pride in their work.

www.paintandpanel.com.au

BODYSHOP FLOW MANAGEMENT

1Q1 would like to congratulate our users Smashtec Best new shop NSW Damage Control Accident Repair Centre Best new shop WA Paull & Warner Accident Repair Centre Belmont Best boutique shop WA

Better efficiency, productivity, margins and profits

www.oneqone.com

2017 PAINT & PANEL BODYSHOP AWARDS

BEST BOUTIQUE WA

PAULL & WARNER Here’s a couple of smart cookies – Nick Farago and Heath Barber have purpose built their second business in Perth and it’s a stunner.

SHOP STATS Size: 1500m2 Staff: 10 Type of repairs: All types Average cars repaired per week: 30

Modern thinking, modern presentation - Paull &Warner is one to watch out for in WA.

PAULL & WARNER started out as an ambulance builder and the shop in the city carried out the bodywork for the fleets.

That’s now a separate business and both the city shop and this one in Belmont is run by Nick Farago and Heath Barber.

Farago used to be with PPG. He bought into the business 15 years ago and when his partner retired, Heath Barber who worked at AMCAP bought in.

When they began the greenfield build over two years ago at the height of industry consolidation in Perth and when mining was taking a dive, Farago reckons if they had a dollar for every time someone said it was a bad idea, they could have built it for free. But Farago and Barber saw that work providers were heading down the MSO route – that they wanted to have fewer interactions in the marketplace and those work providers – predominantly Allainz, RAC, Toyota Insurance and QBE – have all responded very positively to the new shop.

Both the partners came from backgrounds where they helped autobody repairers improve their workplace efficiencies and profits and of course, they’ve applied that to their own business. As well as the insurance work they also carry out a lot of private fleet work too. Belmont is an up and coming area - only four miles from the CBD - and there’s a lot of money being spent to promote it as the gateway to the city.

As for the shop itself – it’s sharp, stylish and well thought 60 PAINT&PANEL September / October 2017

out. There’s great customer facilities with a customer room complete with computer and internet where they can help people with their claims if needs be. The shop isn’t huge but space is maximised and the drive-though booths make it seem bigger than it is. It’s a toss up between this shop or Damage Control for the cleanest mixing room prize – spotless.

Belmont is on the Swan river and the ‘Shire’ are eagle eyed on the environment. Panel shop was a dirty word to them, but Farago consulted with the council before building the shop and clearly got things right as The Shire has just presented the business with an environmental award.

Farago and Barber have their eye on the future – could another shop be in the pipeline at some point? Most definitely. “Work providers like choice and there is plenty of room for more multi-site repair networks,” said Farago. “You have to be committed, deliver what you say you will and ensure quality is high.”

POWELL’S COMMENTS

Nick and Heath have created a really sustainable business here, both in terms of their environmental efforts and their plans for the future. www.paintandpanel.com.au

CONGRATULATIONS BEST BOUTIQUE SA - HANSON ROAD CRASH REPAIRS WA - PAULL AND WARNER ACCIDENT REPAIR CENTRE BELMONT

BEST NEW VIC - CAPITAL SMART ROWVILLE

BEST LARGE VIC - B&A MOTOR BODY REPAIRS Congratulations to all that have won awards in the Autobody of the Year Awards. We hope for many more years of success for all repair shops.

PPG is proud to continue supporting progressive bodyshops who strive every day to excel.

2017 PAINT & PANEL BODYSHOP AWARDS

BEST LARGE SHOP WA

J&M SMASH REPAIRS

SHOP STATS Size: 1500m2 Staff: 19 Type of repairs: All types Average cars repaired per week: 35

The judging team has never been to J&M Smash Repairs and we've been seriously missing out, because this a great shop.

OWNED BY BROTHERS Jim and Mario Zito, the business was set up in 1988. The team undertook an extensive renovation back in 2010. The street facade is eye-catching – the red, black and silver combo really works. The exterior and large, stunning reception is an example of innate Italian styling – it's a modern take on Art Deco. Out of the kitchen comes a truly delicious coffee and the best biscotti I've tasted.

This is a substantial shop – 1500m2 – that's superbly organised. It's clean, well laid out and the staff all seemed happy to be there. We spoke to a painter who had joined the company a few months earlier and he couldn't have sung J&M's praises higher in terms of what a great place it is to work and the shop's dedication to putting out top quality work. The fact that there are so many long term employees speaks volumes.

Flexible working hours and regular staff events no doubt contribute to team loyalty.

J&M specialises in medium to big hits – which is pretty smart in the Perth market where there are a number of MSOs specialising in small hits. The shop has its own well equipped plastic repair room (Jim describes the inhabitant as an artist) and everything around the whole site is signposted to make it quick and easy to find.

62 PAINT&PANEL September / October 2017

Very modern Art Deco in reception - we like the friendly wizard logo. Clean and organised in both paint and panel shops.

The paint shop sports five spacious prep bays and there are two oversized Saico ovens that you could probably fit two small cars in – and a shedload of parts. The paint and panel team are both working with top quality equipment, lighting is also good.

J&M is another example of an established business that keeps up with the latest techniques. Parts are pre-ordered and the team has devised an excellent visual system to ensure there are no mistakes. They don't start working on the car until everything is in. The team undertakes I-CAR and Valspar training to keep their skills up to date.

All headlights are properly calibrated before the vehicle leaves the shop and there are a number of quality checks before the vehicle is handed over to the customer. The company is proud to have been complying is ISO 9001 for over 15 years.

Jim and Mario also market the business well through Facebook, radio and online advertising as well as producing brochures about the business.

The brothers clearly take their reputation for both customer service and quality repairs incredibly seriously and combine passion, precision with Italian flair.

POWELL’S COMMENTS

Looks as good inside as it does on the outisde. The brothers have total commitment to the best customer outcomes and have have thought through every aspect of what it takes to achieve this. www.paintandpanel.com.au

AHG Trade Parts Centre congratulate

WINNERS ARE GRINNERS

J&M Smash Repairs BEST LARGE SHOP

Paull and Warner Accident Repair Centre Belmont BEST BOUTIQUE SHOP

Damage Control Accident Repair Centre BEST NEW SHOP

100 APP House Qtr x3.indd 1

21/09/17 11:16 AM

MAZDA PARTS WA

Congratulates DAMAGE CONTROL ACCIDENT REPAIR CENTRE

PAULL AND WARNER ACCIDENT REPAIR CENTRE BELMONT

J&M SMASH REPAIRS PTY LTD

Best New Shop WA

Best Boutique Shop WA

Best Large Shop WA

08032 Mazda Parts HPH.indd 1

18/09/17 2:38 PM

2017 PAINT & PANEL BODYSHOP AWARDS

BEST NEW SHOP SA

PLAZA CRASH REPAIRS While this isn’t a brand new shop, brothers Eric and Rob Giro and their team have substantially refurbished and extended the business to create a logical, well equipped, comfortable working environment.

SHOP STATS Size: 1250m2 Staff: 22 Type of repairs: All types Average cars repaired per week: 30-40

ABOVE LEFT: Eric Giro standing in front of the company's distinctive logo.

RIGHT: Welcoming front of house.

ONLY IN ADELAIDE do you find a repair facility in residential areas with suburban birds tweeting happily away outside the business.

Plaza Crash Repairs is all about quality repairs and customer service. For the last two years running they have nabbed the YOUI Authorised Service Provider of the year for SA and came second in Australia. The majority of work comes from RAA, QBE, Allianz, Elders, Comminsure, and YOUI. While they look after customers, they really look after the team too. We all know how hot it can get in Adelaide which, apart from making an uncomfortable environment to work in, can lead to downtime when its simply too boiling to pick up the tools. To combat this the Giros have put air conditioning into the panel shop. While it makes good business sense to do this there are plenty of other ways that the Giros look after their team such as regular training, bonuses, flexible hours, family events, and a holiday house retreat.

There are two panel shops feeding the paint technicians – the smaller dedicated to fast repairs and the larger deals with the heavier hits. Both are clean, uncluttered and well organised. Both are well-equipped with top notch gear with the larger being treated to gleaming green new Globjig realignment systems – locally sourced of course. There’s also a smart, undercover detailing area.

The paintshop is large and the team invested in a new Lowbake 64 PAINT&PANEL September / October 2017

system with two booths, two prepartion bays and a paint mixing room which looks very smart, bright and up to date.

Really there was nothing to fault at Plaza. All the team from front of house to the technicians behind were friendly, happy and productive. Powell’s critical eye very much approved of the standard of work he saw being undertaken and I very much approved of the smart reception and possibly the best coffee of the trip (J&M Smash came really close).

We haven’t said much about parts storage in our reports this year because, for the most part (and thankfully), gone are the days of dusty, disorganised parts areas. No one can afford the downtime of technicians not being able to find what they need instantly – needless to say Plaza was on top of their parts ordering and storage and that this area reflected the passion for order, precision and quality outcomes evident throughout the rest of the business.

POWELL’S COMMENTS

Impressive organisation, quality work being carried out, Giro’s passion for the business shows in every department. www.paintandpanel.com.au

On behalf of the team at the SAPE group of companies Including Sydney Automotive Paints & Equipment, Prestige Paints & Equipment Supplies and Automotive Colour & Equipment

Congratulations!

To All the Regional Winners of the 2017 Autobody Repairer of the Year Awards

NEW SOUTH WALES

SOUTH AUSTRALIA

QUEENSLAND

BEST NEW SMASHTEC Contact: Scott Stephens Address: 8 Carrington Road Marrickville NSW 2204 Phone: (02) 8321 7988 Email: scott@smashtec.com.au

BEST NEW PLAZA CRASH REPAIRS Contact: Eric Giro Address: 21 Braeside Avenue Holden Hill SA 5088 Phone: (08) 8263 3655 Email: reception@plazacrash.com.au

BEST NEW EAGLE SMASH REPAIRS Contact: Scott Stahlhunt Address: 36 Harvey Street North Eagle Farm QLD 4009 Phone: (07) 3268 7310 Email: scott@eaglesmashrepairs.com.au

BEST BOUTIQUE BENNETT ELDER SMASH REPAIRS PTY LTD Contact: Scott Elder Address: 3 Harley Crescent Condell Park NSW 2200 Phone: (02) 9791 9229 Email: admin@besr.com.au

BEST BOUTIQUE HANSON ROAD CRASH REPAIRS Contact :Antonio Bava Address : 231 Hanson Road Athol Park SA 5012 Phone: (08) 8345 4019 Email :admin@hansonrdcrash.com.au

BEST BOUTIQUE EURO COLLISION CENTRE Contact: Steve Robey Address: 6 Anne Street Southport QLD 4215 Phone: (07) 5583 8844 Email: eccadmin@eurocollisioncentre.com.au

BEST MEDIUM LEN HOLLIS REPAIR FACILITY Contact: Darren Myers Address: 4 Emily Street Mortlake NSW 2137 Phone: 1300 465 547 Email: darren@myershollis.com.au

BEST LARGE EBLEN COLLISION REPAIRS Contact: Dario Tonon Address: 240 BrightonRoad Somerton Park SA 5044 Phone: (08) 8294 2952 Email: admin@eblencollision.com.au

BEST MEDIUM MAXBUTTS BODY WORKS Contact : Gavin Perry Address: 18 Green Glen Road Ashmore QLD 4214 Phone: (07) 5597 0444 Email: gavin@maxbutts.com.au

WESTERN AUSTRALIA

VICTORIA

BEST NEW DAMAGE CONTROL ACCIDENT REPAIR CENTRE Contact: Arnold Investments Pty Ltd Address: 18 Haydock Street Forrestdale WA 6112 Phone: 0422 868 949 Email: damage.control@bigpond.com

BEST NEW CAPITAL SMART ROWVILLE Contact: Brian Jack Address: 960 Stud Road Rowville VIC 3178 Phone: 0417 056 402 Email: brian.jack@capitalsmart.com.au

BEST BOUTIQUE PAULL AND WARNER Accident Repair Centre Belmont Contact: Nick Fargo and Heath Barber Address: 15 Wynyard Street Belmont WA 6104 Phone: (08) 6102 4020 Email: nick@pwbelmont.com.au BEST LARGE J&M SMASH REPAIRS PTY LTD Contact: Jim Zito Address: 287 Victoria Road Malaga WA 6090 Phone: (08) 9249 3455 Email: jmsmash@jmsmash.com.au

BEST LARGE SOMMERVILLE SMASH REPAIRS Contact: Chris Agnew Address: 12/14 O’Shea Drive Nerang QLD 4211 Phone: 0408 965 711 Email: chris@sommervillesmashrepairs.com

BEST BOUTIQUE 5 STAR PANELS Contact: Fred Sleman Address: 32 Ovata Drive Tullamarine VIC 3043 Phone: (03) 9338 0389 Email: admin@5starpanels.com.au BEST LARGE B&A MOTOR BODY REPAIRS Contact: Dominic Mazzeo Address: 1848 Princes Highway Clayton VIC 3168 Phone: 0438 360 580 Email: dominic@bamotors.com.au

The SAPE Group of Companies One-stop shopping for Collision Equipment and Consumables...

Tel: 02 9772 9000

SAPE Head Office, Showroom and Training Centre - Unit A3, 366 Edgar Street, Condell Park NSW Australia 2200

Totally committed to the performance of your shop!

2017 PAINT & PANEL BODYSHOP AWARDS

SHOP STATS Size: 1300m2 Staff: 8 Type of repairs: All Avg car repaired per week: 20

Great livery and kerb appeall, reception has had modern makeover too.

BEST BOUTIQUE SA

HANSON ROAD CRASH Hanson Road Crash won best boutique shop back in 2011 but they have really upped their game since then, rebranding and expanding the shop.

WE'VE VISITED A lot of Car Craft shops over the years but none as loud and proud as Hanson Road Crash (HRC) sporting huge signs everywhere. It's not surprising really as owners Tony Bava and Alasdair Ross and fully immersed in the industry. Not just in Car Craft but also MTA SA – they both invest a great deal of time sharing best practice and networking with fellow repairers. This year the business celebrates it 30th anniversary.

A series of fortunate events has led to the pair being able to purchase units either side of the site. This has allowed them to double the size of what was a very cramped panel shop. It's also allowed them to up their productivity by five cars per week.

Another building purchase offers handy covered storage for cars and the old post office next door now houses a boardroom and awesome kitchen facilities for the team.

The new panel shop is kitted up with new Car-O-Liners. While the Monarch paintshop is old it is perfectly functional and able to cope with the extra work. HRC specialises in four wheel drives and fleet work. Bava and Alasdair could read the writing on the 66 PAINT&PANEL September / October 2017

wall for smaller shops when insurers began to favour the mega shop – which Adelaide has had a significant influx of over the last three years. A badge was sought and gained, Peugeot and the specialisation in four-wheel drives has paid off. The pair are quality questors and neither have a desire for a high volume, high pressure small repair environment. Although it's a small team there is an abundance of knowledge and expertise, with long-term, well trained employees who enjoy the challenges and variety of the work.

One of the industry positives for Bava is: “Even after 30 years we still get the opportunity to learn and apply new technology and techniques in an ever-improving industry.”

To keep the staff up to date daily tool box meetings take place and there's plenty of staff lunches to keep the team happy. Although Bava and Ross don't yearn for a megashop they are in good position to expand or downsize in the future with a flexible property lay out that can be utlised in a number of ways.

POWELL’S COMMENTS

A well managed repair facility that has kept up with trends, techniques and developments in the industry. The involvement within the repair community is also to be applauded. www.paintandpanel.com.au

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21/09/17 11:17 AM

The CMI Toyota parts and accessories team congratulate Eric Giro of Plaza Crash Repairs (2017 Best New Shop SA)

Tony Bava of Hanson Road Crash Repairs (2017 Best Boutique Shop SA)

Category winners at the Paint & Panel Auto Body Repairer of the year awards 2017

2017 PAINT & PANEL BODYSHOP AWARDS

BEST LARGE SA

EBLEN COLLISION REPAIRS Eblen Crash is another SA business that’s invested in expanding the workshop to ensure a better workflow.

SHOP STATS Size: 1000m2 (site 2500m2) Staff: 19 Type of repairs: All types Average cars repaired per week: 40

LEFT Dario Tonon; MAIN Expanded panel shop offers much better workflow.

DARIO TONON UNDERSTANDS the benefits of networking and exploring every opportunity to encounter fresh ideas he can take back to the business. He attends every conference, Car Craft event, MTA SA, I-CAR event he can. If he can’t go then he’ll send someone else from the business.

Eblen Collision Repairs was one of the first appointed Subaru repairers and is also an approved repairer for VW. Customer service is paramount and this is demonstrated in a number of ways. Firstly a simply beautiful reception area with toys for the kids, lovely flowers and comfortable facilities. The customer parking area is excellent too – it looks onto a funky glass corridor which is lined with excellent pictures of various repairs so that the team can explain to a customer what needs to be done and why.

The offices are modern and well kitted out and there’s a fantastic kitchen and boardroom.

What strikes you first as you walk into the workshop is the number of youngsters working in there. Practically the best aspect of working in the business for Tonon is bringing on the next generation of technicians. Given that other repairers complain about the lack of apprentices available, Tonon must be doing all the right things to have so many on staff. Of course it also has the benefit that many of them have stayed and these technicians are trained in the Eblen ways. The panel shop has 68 PAINT&PANEL September / October 2017

been expanded since our last visit and that’s made a huge difference to workflow.

Tonon is all about empowering his team – they take responsibility for what they do, he expects the best from them and generally gets just that. While Tonon doesn’t see the point in micromanaging anyway, he knows that time is better spent working on the business and maintaining great relationships with work providers and customers.

Tonon and his business partner Peter Eblen have also invested in rebranding Eblen with a bright eye-catching new logo. They market Eblen through facebook, both print and online advertising and community sponsorships. While there’s plenty of training going on in the workshop, the front of house staff also undergo training to ensure the levels of customer service are at their highest.

By keeping up with all the latest thinking in the collision sphere, Tonon and the team keep are definitely keeping ahead of the game.

POWELL’S COMMENTS

The latest of everything but all with the solid unerpinning of the core skills needed for success - quality technicians turning out quality repairs leading to satisfied customers. www.paintandpanel.com.au

TICKETS ON SALE NOW FRIDAY OCT 20

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HAMILTON HOLDEN SOUTH AUSTRALIA’S LEADING SUPPLIER OF HOLDEN COLLISION PARTS, PPG & 3M. WOULD LIKE TO CONGRATULATE OUR VAULABLE CUSTOMERS ON THEIR 2017 ACHIEVMENTS

6/09/17 4:06 P

PLAZA CRASH REPAIRS (BEST NEW SHOP) SA HANSON ROAD CRASH REPAIRS (BEST BOUTIQUE SHOP) SA EBLEN COLLISION REPAIRS (BEST LARGE SHOP) SA HAMILTON HOLDEN & HSV BRIGHTON ROAD, SOMERTON PARK SA T - (08) 8179 4300 HAMILTONHOLDEN.COM.AU

07939 Hamilton Holden HPH.indd 1

6/09/17 3:58 PM

2017 PAINT & PANEL BODYSHOP AWARDS

SHOP STATS Size: 4500m2 Staff: 50 plus Type of repairs: Driveable Avg car repaired per week: 100 Cars as far as the eye can see in this enormous facility. BELOW: The painters like Craig Bodeker (pictured) seem pretty happy.

BEST NEW SHOP NSW

SMASH TEC

Smash Tec is Scott Stephens’ second location - just a little further along the street in Marrickville from his first shop Monza Smash, which scooped Best Medium Shop NSW in last year’s awards.

STEPHENS IS YOUNG, capable, determined and clearly he’s impressed the brass at IAG. When the former electrical goods warehouse became available in the same street as Monza, Stephen saw a way to streamline his business to offer an even more attractive service to IAG. This much space in the inner city is the stuff of dreams.

Smash Tec’s footprint is a giant 4,500 square metres – probably even a bit more than Stephens needs, but he’s not complaining.

While Monza concentrates just on the heavy work, Smash Tec is geared up for driveable repairs.

Stephens has made the most of the space with wide bays, plenty of room to manouvre and a logical, smooth workflow.

The paint arena is a drive-through Lowbake arrangement with huge prep bays.

Stephens is the classic example of how working on the business instead of in it pays off. You just can’t come up with such a seemingly simple workflow without a great deal of big picture thought. From developing their own efficient parts and consumables system which ensures they never run out of anything or hold too much stock, to investing in two compressors so that if one conks out the other can take over and pay for itself in a couple of days of saved downtime. The shop alternates between the two units which will lenghten the lifespan of each.

The car wash takes just seven minutes per vehicle.

This is no glamour shop - it’s in an old building that’s far from purpose-built, but walk around and you’ll find beauty in the clean, supremely organised workshop floor. The technicians look happy and at 100 plus cars a week, you know they’re productive.

While the outside is kind of ugly industrial art deco, reception and customer waiting areas are modern, attractive and 70 PAINT&PANEL September / October 2017

professional. Reception contains a large, comfortable waiting room for those who want to wait for their repairs, as well as the best kitted out children’s playroom we’ve seen.

Stepping onto the floor there’s an estimating area twice the size of most inner city shops - you could quote five semi-trailers in there if you were so inclined. No car has to be outside the building at any time, keeping finished cars clean and customers dry on rainy days.

With such a big shop Stephens didn’t want his staff to feel ‘like a number’. The workshop staff are made up of small teams with a team leader for each. This gives employees a heightened sense of ownership responsibility and pride in their work.

Stephen clearly relishes the challenge of running two shops and we wouldn’t be surpised if, over time, the business morphed into a formidable MSO. What does he like about working in the industry right now?

“Seeing the modernisation of the smash repair industry which is now firmly in the 21st century,” he says. “Most shops are now fitted out with the correct, professional equipment required to repair today’s vehicles.

“This along with further training with the likes of I-CAR and other training organisations is allowing industry to have a more corporate and professional approach to customers.“

POWELL’S COMMENTS

A smart repairer who investigates every efficiency avenue. Stephens makes the best out of an old building with modern up to date equipment and techniques. www.paintandpanel.com.au

DNS Technology would like to congratulate the following winners of the 2017 Paint & Panel Bodyshop of the Year Awards.

It is with great pride that 7 of the 16 winners are our customers.

Smashtec

Bennet Elder Smash Repairs

Euro Collision Centre

Maxbutts Auto Body Works

Sommerville Smash Repairs

B & A Motor Body Repairs

Best New Shop, NSW Best Boutique Shop, QLD Best Large Shop, QLD

Best Boutique Shop, NSW Best Medium Shop, QLD Best Large Shop, VIC

Hanson Road Crash Repairs Best Boutique Shop, SA

All of these shops must be commended on their commitment to customer service, quality repairs and their never ending quest for improvements in productivity and efficiency making them leaders of the industry and worthy award winners.

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2017 PAINT & PANEL BODYSHOP AWARDS

BEST BOUTIQUE NSW

BENNETT ELDER SMASH REPAIRS Smart exteror, plenty of parking and a paragon of order inside.

SHOP STATS Size: 1100m2 Staff: 8 Type of repairs: All types Average cars repaired per week: 20

Another new shop for the judging team, another one that impressed the hell out of us. Scott Elder has created a sustainable businesses that focuses on quality rather than quantity.

THE TEAM MOVED from the Revesby site Bennett Elder had inhabited since 1967 just two years ago, after the landlord sold out. To ensure they don’t have to move again, Elder bought this building in Condell Park. “Moving was the best thing we ever did,” said Elder who has worked in the business since his apprenticeship days and has been running it solo since 2002.

He and manager Wayne Cousins put in a lot of after hours and weekend labour on the new premises – an electrical lighting factory – which means they shut the Revesby shop on Friday and were able to reopen in Condell Park the following Monday.

The facility prays at the alter of ‘a place for everything and everything in its place.’ Judge Powell’s heart always beats a little faster when he sees comprehensive signage and Bennet Elder has this in spades, with the home of every piece of equipment sporting a label above it – even the garbage bins at the front of the shop have their own stylish little house so that they don’t spoil the neat forecourt of the shop.

One of these signs is the I-CAR Gold accreditation. Customers ask about the sign and that gives Elder the opportunity to explain that in other businesses the technicians might not do any training after they have finished their apprenticeship but that his guys are different.

“I went down the Gold path because I thought the day would come when insurers will only want to deal with I-CAR Gold accredited shops,” Elder said. “I thought it would come a lot sooner, but it looks like its finally heading in that direction.

72 PAINT&PANEL September / October 2017

“At the end of the day we’re here to repair cars properly not cheaply. If my customer has a five star car I will give them back a five star car. “ Bennett Elder’s main work provider is Hollard. The company took the decision not to go for volume and chase contracts with either of the big two. Elder knows his numbers and exactly the right volume for his business – he would rather repair less and concentrate on high quality repairs. The business is also self assessing for Youi and does some fleet and local council work. A good profit centre is car dealership warranty work – an area where he can charge his proper hourly rate, the business also profits from a healthy dose of referral work from the dealerships.

The Condell Park site is compact, simple and beautifuly organised and super clean. The Pan paint shop looks brand new. All the of equipment is stored behind a false wall which accounts for the minimalist feel. Elder reckons that the team is capable of repairing 35 vehicles per week but says they are ticking along really nicely doing 25 with cycle times to keep work providers happy. Sounds like someone might have their work/life balance sorted.

POWELL’S COMMENTS

It refreshing to meet a repairer who really understands their business and is totally committed to training and high quality repairs. The high level or organisation has created an unstressful working environment. www.paintandpanel.com.au

PARTS & PAINT

CONGRATULATES

PARTS & ACCESSORIES

BENNET ELDER SMASH REPAIRS PTY LTD

Peter Warren Automotive Wishes to Congratulate Scott Elder from Bennett Elder Smash Repairs For Winning BEST BOUTIQUE SHOP in NSW 2017

Winner of the Best Boutique Shop New South Wales At the Autobody Repairer of the Year Awards 2017 McGrath Parts & Paint 402 Hoxton Park Rd Prestons P: 9602 3322 E: parts@acmcgrath.com.au

parts@peterwarren.com.au

Phone: 02 9828 8999

Fax: 02 9602 8884

Cnr Hume Highway & Todman Rd Warrick Farm NSW 2170

08038 McGrath Parts & Paint.indd 1

west end mazda

15/09/17 9:02 A

W O U L D L I K E T O C O N G R AT U L AT E

SMASHTECH Best New Shop NSW

BENNETT ELDER SMASH REPAIRS PTY LTD Best Boutique Shop NSW

LEN HOLLIS REPAIR FACILITY Best Medium Shop - NSW

W I N N E R S AT T H E A U T O B O D Y R E PA I R E R O F T H E Y E A R AWA R D S 2 0 1 7

08047 West End Mazda HPH.indd 1

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2017 PAINT & PANEL BODYSHOP AWARDS

BEST MEDIUM NSW

LEN HOLLIS REPAIR FACILITY Here’s another repairer well ahead of the game. Darren Myers seems very laid back - like it all comes naturally, but there’s been a huge amount of work, thought and investment applied to this business.

SHOP STATS Size: 1100m2 Staff: 13 Type of repairs: All Average cars repaired per week: 25-40

The aluminium bay gets a good work out at Len Hollis.

MOTRLAKE IS WHAT you might call a pricey part of town and Darren Myers certainly caters for his clients – everything is in the best possible taste. The exterior is sharp and modern and the interior is, well, jaw-droppingly gorgeous. There’s an ipad bar as you walk in – designer wall paper that you might expect to find in mansion somewhere and the best neccessariums we’ve seen -and we’ve seen some top notch customer toilets in our time.

Aside from all the lovely marble and designer sinks etc, there’s a baby changing table and even a difributlator which impressed the hell out of judge Powell. Sadly Myer’s manager had a heart attack last year hence the installation, but given that the business has recently installed an electric car charger with an eye to repairing those vehicles, it’s a doubly excellent idea.

Upstairs is a boardroom and offices. The panel shop has a clever aluminium cabin and the Lowbake paintshop has an IR arch in the booth. This is an old shop and essentially inner city, therefore not the ideal layout for today’s autobody repairer but Myers makes the most of it with cunning storage solutions.

We love the customer collection inspection bay which leads directly out onto the road.

Myers gets that proactive not reactive wins the day. His thinking on installing the electric car charger is that you don’t want to get your first electric car delivered to work on and then 74 PAINT&PANEL September / October 2017

you can’t move it round the workshop or the customer can’t drive away in it. That’s also smart, because once he lets his work providers know then he’s one step ahead of the competition when the time comes he’ll be the first to be allocated these car.

The affluent neighbourhood is bound to have plenty of early adopters and who knows what other badges might be granted on the back of being at the forefront of the electric charge.

The I-CAR Gold status is never going to hurt when reeling in manufacturers and work providers. Having invested in all that training he’s not shy about letting everyone know, with a prominent section on the business web site.

Len Hollis is already Toyota approved and work providers include Hollard, IAG, Innovation and Dawes. We expect there to be a least a couple more badges in the next couple of years as the equipment and facility standards are nudging towards those of a dealer and so manufacturers will be happy to send their customers there.

POWELL’S COMMENTS A good attitude, modern look and feel, great equipment levels and impressive commitment to training,

www.paintandpanel.com.au

CELEBRATE EXCELLENCE THE PAINT & PANEL TEAM WOULD LIKE TO CONGRATULATE ALL THE BODYSHOP AWARD WINNERS FOR 2017.

WE WOULD ALSO LIKE TO THANK OUR SPONSORS WHO MAKE IT POSSIBLE TO RECOGNISE AND CELEBRATE THE BEST IN THE INDUSTRY.

Platinum sponsors

Silver sponsor

Gold sponsor

Associations/Groups

2017 PAINT & PANEL BODYSHOP AWARDS

BEST NEW VICTORIA

CAPITAL S.M.A.R.T ROWVILLE SHOP STATS Size: 4500m2 Staff: 90 Average cars repaired per week: 75 Type of repairs: Mainly drivable It’s big, it’s well lit and well equipped.

Below: Lowbake drive throughs are pretty much standard at most S.M.A.R.T facilities.

The purpose-built company headquarters in Rowville includes a brand new S.M.A.R.T +PLUS workshop that is both huge and impressively laid out and equipped.

NOW WE KNOW that large multi-site operators are competing in their own category this year, but as we had no nominations for other new shops in Victoria, Rowville is an outstanding shop and a deserving winner.

The large MSOs mainly work on a spoke and hub system these days where the drivable-only shops send their out of scope to one facility that only deals with larger repairs. Capital S.M.A.R.T doesn’t work on really big hits but a number of S.M.A.R.T +PLUS facilities have been opened over the last couple of years to cater for structural drivable repairs.

Now we know the S.M.A.R.T model has not been universally popular with the industry. And we know that there might be a dollar or two more available to set up a new shop compared with your traditional independent shop owner, but these guys really invest in the best equipment around and buy from Australian suppliers. Apart from the obligatory Lowbake paint shop showroom complete with super-fast drying arches, the alignment benches are Car-O-Liner, the spray guns are top notch, as are the consumables and other equipment.

I have to report to all the naysayers out there, the Capital S.M.A.R.T crew is tight. Everyone we encountered was proud to be part of the network – so top marks for creating a healthy 76 PAINT&PANEL September / October 2017

culture. Initiatives like supplying staff lunches every day and having open days on weekends so employees can work on their own cars are the sort of gestures that will encourage loyalty.

You won’t be surprised to hear that the group has its own training programs and a number of incentives to reward outstanding team members as well as staff events and an annual conference.

The group’s CSI score for 2016/17 was 8.65 out of 10 which, given the huge volume of repairs, is impressive.

We know this team isn’t there to get intimate with spiders – they push out serious numbers and have created clever ways of speeding up cycle time and keeping costs down. Every site has a plastic repairs area, every painter knows the correct volume of paint to measure out for the repair, every spray gun is standard to ensure that there aren’t variations in this volume. Every S.M.A.R.T has its own workshop management system with screens around the business so that the team can see vehicle progress and how close they are to their given targets.

While the Rowville site is brand new, the S.M.A.R.T processes will ensure that the team put in the effort and maintenance so that continues to look as good for many years.

POWELL’S COMMENTS

Large and impressively equipped, the S.M.A.R.T +PLUS team have all the right tools to undertake the repair work for these driveable structural repairs.

www.paintandpanel.com.au

WINNERS ARE GRINNERS

CONGRATULATIONS To this years’ winner in the Paint & Panel Magazine, Suncorp Body Shop of the Year awards:

Jim Vais at Smart Plus Rowville Winner of Best New Shop, Victoria bayford.com.au

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21/09/17 11:16 AM

Zagame Automotive Group wishes to congratulate our customers who have been awarded Victorian winners of the 2017 Paint & Panel Bodyshop Awards.

■

Capital S.M.A.R.T Repairs Rowville – Best New Shop 2017

■

B&A Motor Body Repairs – Best Large Shop 2017

■

5 Star Panels – Best Boutique Shop 2017

PARTS HOTLINE 130 0 Z AG PARTS - 130 0 924 727 EMAIL par ts@zag.com.au ZAG.COM.AU

2017 PAINT & PANEL BODYSHOP AWARDS

SHOP STATS Size: 2000m2 Staff: 14 Type of repairs: All Types Average cars repaired per week: 20

Black red and silver works every time!

BELOW: Spacious paint shop.

BEST BOUTIQUE VIC

5 STAR PANELS A lot has changed since we visited 5 Star Panels last year – and all of it has been good. Owner Fred Sleman has doubled the size of his workshop and achieved a spacious and organised autobody repair environment.

5 STAR HAS fantastic kerb appeal with its black, red and silver livery. Both the panel and paint crew used to be crammed into the current spacious paint shop. The new workshop next door has allowed both teams generous bays to work in. Both sides are kept spic and span and are well equipped.

5 Star has a smart, corporate style reception with a kick ass coffee machine and a supply of fresh pastries from a nearby fancy French cakery. Sleman outgrew his former premises and moved to the current location in Tullamarine in 2016, only minutes from the airport. So naturally he was our first stop on the Melbourne leg – only no one had told Powell's sat nav as we chased around circles trying to get there. It was well worth the aggro though. Sleman is justifiably proud of what he has achieved since he moved into the current site.

While Sleman is the first to admit market conditions have been volatile to say the least, he's kept his head down and just got on with improving and growing the business. He might have missed out on securing approved repairer status with some of his work providers but they are still happy to keep sending him cars to repair 78 PAINT&PANEL September / October 2017

and he's happy to repair them. The extra space allows him to carry out mechanical repairs onsite helping to control cycle times.

“Our workshop has had steady increase over the five years I've owned it in extremely volatile times for our industry. We are pleased to keep investing and growing the 5 Star Panel brand regardless of who we do work for,” Sleman said.

“Our customer service and workmanship is second to none and we go above and beyond to make sure every customer leaves here satisfied with the repairs and service.

“In the long run, although we are a "badged shop", all services provided reflect on our reputation and not the insurer. I like to think I can prove those people who say insurance shops have to cut corners to be able to do quality repairs wrong. In if you have correct procedures and workshop management this should be quite and easy target to achieve,” he said.

Sleman markets the business through his website and on social media and reports that business is good. His team undertakes I-CAR and Axalta training, enjoy monthly barbecues and seemed quite happy getting on with their work in their more spacious surroundings.

POWELL’S COMMENTS

Sleman has utlised the new workshop well, the workflow is more harmonious. Sleman is a realist and a hard worker both necessary to succeed in this competitive market. www.paintandpanel.com.au

2017 PAINT & PANEL BODYSHOP AWARDS

BEST LARGE SHOP

B&A MOTOR BODY REPAIRS ‘Corporate structure, family values’ motto could just as easily be applied to the building as the buisness.

SHOP STATS Size: 4,150m2 Staff: 36 Type of repairs: All Average cars repair per week: 80

B&A is the epitome of family business with two generations working side by side. The repair facility is living proof how hard work, dedication and a passion for quality work and excellent customer service can lead to impressive business growth.

SECOND GENERATION COUSINS Dominic and Tony Mazzeo showed us around. B&A could stand for blimmin’ awesome, especially when it comes to the amazing customer facilities. There’s a sleek, corporate, huge reception area. Upstairs you’ll find a stylish board room and offices, downstairs lovely ‘comfort’ facilities including a disabled toilet and free wi-fi.

The business was founded by Bill and Fred Mazzeo and their wives Antonia and Catina who bought the site in 1974. It was originally a petrol station with a little workshop behind it. Every five to 10 years the family have reinvested in expanding and developing the business into the large operation it is today. The petrol station was closed down recently to concentrate on the repair and servicing business.

The family is devoted to customer service, professionalism and training. They take immense, and justifiable pride in their achievements. The business motto is ‘corporate structure, family values’.

As well as being approved Subaru and Toyota repairers, B&A’s main work providers are Suncorp, IAG, AIOI, local dealerships and fleet companies.

B&A offers full mechanical services, electronic wheel alignment, PDR, is a 4x4 specialist, repairs light commercial, performs plastic repairs, aluminium repairs, air conditioning services, LPG certified repairs and trade towing. Pretty much a one-stop shop. Keeping everything in house also allows them to 80 PAINT&PANEL September / October 2017

control all aspects of repairs from a quality and workflow management perspective.

A large core of the staff are long termers– we’re talking up to 30 years – which always speaks volumes about good working conditions and management.

The Mazzeo’s bring Italian passion and style to every aspect of the business and that includes bringing on the next generation and ensuring their team stays up to date with training. They also immerse themselves in the local community and market their business professionally both in print and online and through social media.

The huge, well equipped workshop is laid out logically, separating structural and driveable. It’s clean, tidy with good signage. On top of all that, the family shows off it’s automotive passion in the spacious, well lit customer pick up area with the back row being taken up with some of their private collection of Italian exotica as well as some very cute Fiat 500s.

It’s fair to say we were very impressed.

POWELL’S COMMENTS

An impressive shop both in terms of size and business professionalism. The family have worked hard to future-proof the business by investing and growing it over the last 40 years. www.paintandpanel.com.au

Congratulations

NGP Melbourne Pty Ltd

Dominic Mazzeo B&A Motor Body Repairs Best Large Shop

CONGRATULATES

B&A Motor Body Repairs Best Large Shop - Victoria

and

Fred Sleman 5 Star Panels Best Boutique Shop Victorian 2017 Australasian Paint & Panel Autobody Repairer of the Year awards Penfold Motors Parts 11-15 McIntyre St, Burwood VIC 3108 Tel. 1300 858 084 | penfold.com.au

08019 NGP Melbourne QP.indd 1

Your partner in parts

Congratulations B&A Motor Body Repairs for Winning

BEST LARGE SHOP IN VICTORIA

by Australasian Paint & Panel Magazine

Mercedes-Benz Berwick

LMCT578 MCK59410

18/09/17 2:56 P

2017 PAINT & PANEL BODYSHOP AWARDS

BEST NEW SHOP QUEENSLAND

EAGLE SMASH REPAIRS SHOP STATS Size: 1300m2 Staff: 14 Type of repairs: All types Avg car repaired per week: 30 Strong branding, modern styling and fantastic organisation behind the scenes.

Scott Stahlhut started Eagle Smash Repairs back in 2007 aged just 20, with just two staff on board. Over the past 10 years the business has outgrown its first shop and Stahlhut has created a stunning new facility near the airport.

THE BUSINESS NOW employs 14 staff, including two apprentices who have a great environment, to work in. The front of the business could be an office building and when you walk inside you can understand why so many customers say: “I just can’t believe this is a panel shop.”

The reception is simply stunning. A large, beautiful reception desk with the powerful Eagle logo behind it and there’s funky modern furniture in the customer area. It could the lobby for a boutique hotel – complete with a very fancy coffee machine that would make many a barrista’s heart beat faster.

On the walls are a couple of bonnets showing off the stunning air brushing talent of the paint crew. Smart offices are tucked around the corner.

Walk through to the panel shop and while it is your common or garden ‘shed’ it is beautifully laid out and as neat as a pin.

Stahlhut is only 30 has obviously learned the business well over the last decade judging the workshop design. The workflow and layout of is elegant simplicity – nothing fancy, just incredibly well organised and functional. The panel shop sports luxuriously wide work bays, great lighting and he’s invested in some top class equipment for both longevity and sustainability. There’s a state of the art Festool centralised dust extraction system that we’ve only seen at much bigger shops. It certainly does the trick as the panel shop is incredibly clean. The alignment systems are Spanesi and the paint shop is from Masterbooth. Everything is wall mounted 82 PAINT&PANEL September / October 2017

or arranged neatly on shelves. There’s a large paint prep area and the paint mixing room while small is, yes you’ve guessed it, clean and well organised.

To control cycle times there’s a mechanic’s bay too, so that most work is undertaken in house including PDR and regassing.

The business has secured a number of contracts with hire car companies maximising on the airport geography and also has a healthy fleet clientele. The majority of insurance work is for IAG and Youi.

Eagle also has a racy side as well, undertaking repair and paintwork for the Triple Eight Race Engineering, Kostecki Brothers Racing and PMQ. All in all a stunning facility, beautifully designed for efficiency. The staff seemed both cheerful and productive and benefit from bonuses and events to build teamwork.

With his attention to detail, calm demeanour and fantastic attitude it’s quite possible we should consider cloning him, the industry needs many more Stahlhuts.

POWELL’S COMMENTS

Smart, well presented, well organised flow, good signage and ‘lineage’ making for a fluid workshop. www.paintandpanel.com.au

Proudly Congratulates BEST NEW SHOP WESTERN AUSTRALIA

BEST LARGE SHOP SOUTH AUSTRALIA

BEST BOUTIQUE SHOP SOUTH AUSTRALIA

Anthony Arnold

Peter Eblen & Dario Tonon

Tony Bava & Alisdair Ross

DAMAGE CONTROL ACCIDENT REPAIR CENTRE

EBLEN COLLISION REPAIRS

HANSON ROAD CRASH REPAIRS

BEST NEW SHOP QUEENSLAND

BEST LARGE SHOP QUEENSLAND

Scott & Peter Stahlhunt

Carl & Chris Agnew

EAGLE SMASH REPAIRS

SOMMERVILLE SMASH REPAIRS

Australia’s Largest Independent Repair Network

2017 PAINT & PANEL BODYSHOP AWARDS

Ideally located near dealerships, you could throw a stone and hit the Aston Martin dealer, but we wouldn’t recommend it.

SHOP STATS Size: 700m2 Staff: 12 Type of repairs: All types Average cars repaired per week: 25-35

BEST BOUTIQUE QUEENSLAND

EURO COLLISION CENTRE Nestled near some some truly fancy luxury car dealerships in Southport is Euro Collision Centre a boutique repairer that gets to repair some seriously gorgeous pieces of metal to their former glory.

THIS PRESTIGE SHOP is an approved repairer for Jaguar, Landrover, Aston Martin, Audi and - get this - McLaren. Now here's a business that's been using their aluminium repair bay for more than storage for a number of years. It's a credit to them because the workshop is small and awkwardly laid out but since our last visit a couple of years ago they have worked hard to declutter and maximise space, as well as investing in a new Junair paintshop.

As you might imagine getting your mitts on the parts for some of these automotive thoroughbreds need can requires the patience of a saint. Some jobs have jaw dropping key to key times through not fault of the team and yet the 12-strong team can still repair between 25-30 cars per week.

The business front is smart as you would expect and there's a lot of luxurious black leather in dealer standard reception with plenty of pictures to prove the team's passion for cars.

Bays in the panel shop are wide and clearly marked – an old store cupboard has been repurpose to house non-essential 84 PAINT&PANEL September / October 2017

pulling equipment which keeps the panel area clean and tiday.

Bumpers are wall mounted as there isn't a space for traditional parts trollies. In the paint shop there's a well organised mezzanine parts storage area.

As the customers' cars can be at the shop for some time it's a smart move to offer mechanical servicing and wheel alignments to maximise profits.

To ensure team communication and smoother workflow the business employs Planning Plus and iBodyshop.

Technician training is expensive and totally worth it when you hold these kind of badges, but the team still attend I-CAR courses as well as the regular manufacturer training.

If you invest that much in training your team then why wouldn’t you shout about it? Euro Collision Centre isn't shy, undertaking Facebook, radio and print advertising, online advertising and community sponsorships.

The mantra at Euro Collision Centre is 'we deliver outstanding quality, time and time again' , with the kind of demanding clientele they service it's a good one to have and on our visit it very much looked as that if that is exactly what they deliver.

POWELL’S COMMENTS Efficient, compact, improved facilities still maintaining high standards of work on prestige vehicles.

www.paintandpanel.com.au

CONGRATULATIONS TO THE REGIONAL WINNERS OF THE PAINT & PANEL 2017 AUTOBODY REPAIRER OF THE YEAR AWARDS CAR-O-LINER AUSTRALIA IS PROUD TO BE THE SUPPLIER OF AUTOMOTIVE EQUIPMENT TO THESE REGIONAL WINNERS OF THE PAINT & PANEL REPAIRER OF THE YEAR AWARDS 2017

WESTERN AUSTRALIA BEST BOUTIQUE PAULL AND WARNER ACCIDENT REPAIR CENTRE SOUTH AUSTRALIA BEST BOUTIQUE HANSON ROAD CRASH REPAIRS BEST LARGE EBLEN COLLISION REPAIRS VICTORIA BEST NEW CAPITAL SMART ROWVILLE

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QUEENSLAND BEST BOUTIQUE EURO COLLISION CENTRE BEST MEDIUM MAXBUTT BODY WORKS BEST LARGE SOMMERVILLE SMASH REPAIRS NEW SOUTH WALES BEST BOUTIQUE BENNETT ELDER SMASH REPAIRS

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2017 PAINT & PANEL BODYSHOP AWARDS

BEST MEDIUM QUEENSLAND

MAXBUTTS AUTO BODY WORKS SHOP STATS Size: 100m2 Staff: 22 Type of repairs: All types Average cars repaired per week: 65

The unusual purple livery is striking and memberable. The panel shop is a bit cramped but they make it work.

This busy productive one stop shop has continued to invest in the latest equipment to stay competitive.

BIT OF SURPRISE, but Maxbutts changed hands in between our visit and announcing the award winners. It's now owned by the Victorian-based Western General Motor Body Works Group (WGMW) who also bought another well known Queensland shop last year – Miami Smash.

The purple livery on the exterior and in the reception area of this busy shop gives a great first impression. There’s ample customer parking and excellent signage outside. We love the traditional Queensland sail shade cloths in the estimating area.

Behind reception are the admin offices, then it’s into the workshop, which is jampacked with cars in an orderly fashion.

For the size of this shop, the throughput is pretty impressive. The building layout isn’t ideal and it’s a bit cramped in the panel shop, however there’s a seemingly natural flow to the work, helped by roller door exits. The business recently installed another spraybooth with an SAPE IRT arch to further speed up production, in addition to its two drive through booths in the paintshop.

The team, which consists of a manager, assistant manager, a quality control manager, two admin personnel, four spraypainters and an apprentice, 12 panel beaters and one apprentice, two detailers, a spare parts manager and an account 86 PAINT&PANEL September / October 2017

lady, oversee around 65 repairs a week for just about every insurance company out there. The shop is approved for Allianz, RACQ, NRMA, Zurich, Shannon, QBE Fleet, Sureplan and Fleetplus and is an approved repairer for Toyota and Subaru.

We loved the huge signs that were erected at the entrance and on the side of building to tell people that they had won these awards back in 2013 - if you’ve got it, flaunt it we say.

Maxbutts also has a strong and loyal customer base thanks to its 30-year reputation for quality repairs and excellent customer service.

It’s a substantial workshop team to manage and a lot of cars to juggle. Normally we would say something about the manager who showed us around, but new owners has meant a new manager from the WGMW stable. These guys are used to working in high volume environments so we’re sure they will bed in easily.

Nearby is the company’s mechanical workshop so Maxbutts can keep the air conditioning, wheel alignment, steering and suspension, and other mechanical requirements, and the profits made from them, in house. The business runs a fleet of 8-10 courtesy cars and offers car hire and a roadside breakdown service.

With a towing service as well, the business can claim onestop-shop, offering an integrated service for customers.

POWELL’S COMMENTS

Efficient, well run, producing high quality, high volume work and keeping a lot of it in house with its suite of automotive services. www.paintandpanel.com.au

BODYSHOP AWARDS DINNER 2017

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BEST MEDIUM SHOP QLD

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CONGRATULATES EURO COLLISION CENTRE ON BEST BOUTIQUE, QLD

MAXBUTTS BODY WORKS ON BEST MEDIUM, QLD

SOMMERVILLE SMASH REPAIRS ON BEST LARGE, QLD

JAMES FRIZELLE’S PARTS TEAM CORNER OF NIND AND HIGH STREET, SOUTHPORT, QUEENSLAND, 4215

(07) 5552 3202

20/09/17 9:55 A

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2017 PAINT & PANEL BODYSHOP AWARDS

Highly productive facility that’s easy on the eye as well.

SHOP STATS Size: 3000m2 Staff: 26 Type of repairs: All AVG cars repaired per week: 75

BEST LARGE SHOP QUEENSLAND

SOMMERVILLE SMASH REPAIRS Somerville Smash Repairs looks every inch the quintessential Queensland repair shop with its lush garden and smart blue and citrus green livery.

BROTHERS CARL AND Chris Agnew took over the business in 1994 and have invested in growing, refurbishing and upskilling staff.

The shop is in a great location in Nerang near the freeway. As well as a smart exterior there’s a smart interior reception with great customer facilities. Upstairs there’s a boardroom and further offices which overlook the clean, tidy panel shop.

Adjacent to the panel shop is a large booth, which can be used for trucks or as an aluminium bay. The majority of work is carried out for IAG, RACQ, Budget Direct and Comminsure as well as some fleet and truck repairs.

The paint mixing room was a huge investment and it an impressive size and a pleasant environment for the team to work in. If we were to criticise anything, we found the layout of the paint shop a little disjointed.

The brothers have experimented with a number of different workflows to maximise efficiencies. They also employ both iBodyshop and Planning Plus to keep cycle times down. They certainly put out some numbers – around 75 cars per week with just 18 technicians with a mix of drive and some real heavy hits.

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The brothers pride themselves on their exceptional relationships with work providors and say one of the positives about being in the industry is the current commitment and support to businesses that have invested in and maintain standards from work suppliers.

As well as I-Car training, Sommerville is a member of Car Craft and the MTAQ and benefit from the networking and other training opportunities these relationships bring. The Agnews also venture overseas to increase their knowledge attending shows such as SEMA. That’s where they found the clever parts storage bins they use that fold down to save space in the workshop.

The business makes the most of its geography and have invested in a website designed to inform and convert potential customers and the Agnews have pulled in a satisfying amount of work through this medium.

Carl and Chris clearly love the business are serious about their reputation, committed to constant improvement and growth and confident about their future. That’s what we like to see.

POWELL’S COMMENTS

Big hit, high volume repair centre.

Efficient, well run, achieving a high volume even with a disjointed paint shop which needs to be formalised. www.paintandpanel.com.au

The largest supplier of Toyota crash parts in Australia wishes to congratulate

BEST LARGE SHOP QLD

Chris Agnew from Sommerville Smash Repairs for winning BEST LARGE SHOP in QLD 2017 Downtown Toyota 68 Freight Street Lytton QLD 4178 T 3348 4222 downtowntoyota.com.au

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CONGRATULATES

EAGLE SMASH REPAIRS BEST NEW SHOP QLD

SOMMERVILLE SMASH REPAIRS BEST LARGE SHOP QLD

Congratulates

Sommerville Smash Repairs Winner Best Large Shop (Queensland) at the Autobody Repairer of the Year Awards 2017

WWW.APEAGERS.COM.AU www.paintandpanel.com.au

September / October 2017 PAINT&PANEL 89

2017 PAINT & PANEL BODYSHOP AWARDS

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ON THE ROAD Yes, there's all the equipment and attitude that judges look for but the industry is much richer than that. Here's what caught our eye this year.

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1 4 1 Even though it doesn’t really go in the new reception area, Coorporro Panel and Paint’s customers love this sofa (made by owner Brett Evans) so much it has to stay.

2 One of the staff at J&M Smash Repairs showing their Italian heritage.

3 Damage Control’s Anthony Arnold practices what he preaches.

4 A representation of a quote once an assessor has pared it to the bone?

Or depicting how long it takes to get a car assessed if you’re not in an insurer’s network? L&M Smash weren’t saying.

5 Loved this card holder at Musico.

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6 A very expensive LEGO model on the shelf at Mirage Spraypainters and Panel Beaters.

7 Editor’s 2017 award for best facial hair, Glenn Southgate at Musico Smash Repairs.

8 I don’t think Mrs Powell has much to worry about with Neil in his Village People pose.

9 Real talent at Eagle Smash Repairs

10 We’re not saying Neil has a sweet tooth or anything but some of those were for Five Star Panels’ customers.

11 Not exactly what you expect to find in a paint mixing room - here’s Neil getting trolled.

12 Would you buy a used car from a Bent owner?

13 Loved this stool in reception at Autocraft Collision repairs.

September / October 2017 PAINT&PANEL 91

2017 PAINT & PANEL BODYSHOP AWARDS

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CLEVER STUFF There are so many things that repairers get right, here are some of the things we thought were clever or eye catching this year.

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1 I know it’s a luxury to those who are space constrained but the inspection area for customer pick up is sure to make that customer feel special. This one is at Mirage Spray Painters and Panel Beaters in WA. 2 This inspection area (ignore the driving game, it was there for the opening party) is at Damage Control, WA and the door lets in light to the workshop and allows customers to see what’s happening in there - a bit like theatre kitchen.

3 Lovely paint room at Plaza Crash Repairs, SA. 4 Loved these consumables cabinets at BMW Melbourne, smart and practical.

5 If you’re going to have a heart attack make sure its at Len Hollis Repair Facility, NSW. www.paintandpanel.com.au

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6 The brothers Agnew at Sommerville Smash Repairs saw these clever parts boxes at SEMA. They’re from the US and see how they collapse to a quarter of the size when not in use.

7 Judge Powell wanted this sign tatooed on my arm as I kept leaving stuff all around the country - good to remind customers though.

8 Way to make your staff feel special Jim Vais at SMART. 9 Lovely coffee table at Mirage in WA. 10 Every car that leaves J&M Smash Repairs, WA has its headlights checked.

September / October 2017 PAINT&PANEL 93

CRASH COURSE

WHEN IGNORANCE ISN’T BLISS ‘What you don’t know can’t hurt you’ and ‘ignorance is bliss’ are expressions said to explain if one is unaware of a potentially unpleasant fact or situation.

YOU’D THINK THAT this definitely isn’t the case when it’s applied to smash repairs – in particular, when it concerns their scope and cost. Keeping tabs on rising vehicle repair costs incorporating manufacturer specified procedures coupled with new safety, entertainment and technology features is difficult enough for anyone in the smash repair industry and nigh on impossible for the layman.

The pace at which once high-end technology and safety systems have filtered down into quite humble and affordable new cars has been astonishing. With front and rear radar, cameras and a myriad of sensors with their associated wiring, racking up a 20 grand repair cost for moderate damage to something like a new Subaru Outback for example, is not uncommon.

Anyone who chooses to drive uninsured and ignorant of this could potentially face financial ruin especially if they’re already doing it tough in an economic sense.

While most owners and other drivers work hard not to damage their own or someone else’s car, they would be well advised to be calmly seated and a good distance from loved ones should they ever receive a replacement bill for the active LED headlights on some Mercedes Benz models. This advanced "Intelligent Lighting System" in tandem with computer operated swivels is able to adjust to oncoming traffic, peer around corners, illuminate more brightly, save fuel and cater for thick fog. Each bulb is approximately the size of a grain of rice, encompassed within a lens that projects the beam in the required shape and direction.

All very clever, yet how many within the general motorist population would be aware that these headlamps cost in the vicinity of $5,000 each to replace?

A fairly minor carpark or traffic shunt could well add up to the cost of a near new small car in headlamps alone.

In a similar vein recently, a Sydney talkback radio program was abuzz with mostly ignorant comments about smash repairs following a call from a listener. The caller explained that some weeks earlier he’d parked next to a near new Audi SUV. Upon alighting from the car, his young son had carelessly swung the door open and it hit the Audi’s rear door leaving what appeared to be a minor parking type dent and small scratch. Feeling bad about what had happened, this obviously honest and wellmeaning fellow hung around to give his details to car’s owner and offer to pay for the repairs. The appreciative owner of the 94 PAINT&PANEL September / October 2017

Audi told him that he’d just put it through his insurance.

Subsequently, the caller has received a letter of demand from the insurance company for the recovery of the cost of repairs which has left him flabbergasted and hence the reason for him contacting the radio station for advice.

First of all, he couldn’t believe that he was up for a repair cost of around $3,500 for what appeared to him something very minor. What astounded him more though, was the extent of the scope of work described on the quotation. He felt items like disassembling and totally repainting the damaged door, front door and quarter panel among other things totally unnecessary. The hourly labour rate also got a mention for appearing excessive. The host of the radio program appeared to agree with the caller and became all riled up firing uninformed comments and opinions at his audience about the insurance company, smash repairs, assessors and labour rates.

An independent assessor confirmed with me that cases like this are becoming far more common. He’s noticed a spike in requests for his services to assess estimates on behalf of at fault and uninsured folk who have an insurance company chasing them for what they reckon to be excessive repair costs.

Many are of the belief that repairers still charge around $30 an hour and repairs are merely the application of a bit of filler in a dent with a quick spray over the repaired area. Half the battle is convincing them that this isn’t the case and that their couple of hundred dollar guesstimate is actually a fair and reasonable couple of thousand.

This ignorance of smash repairs appears to partly emanate from the convenience for clients in dropping off their damaged vehicles with their insurance company and thereby having no contact whatsoever with the bodyshop doing the repair. Gone are the days when the repairer dealt directly with the vehicle’s owner taking the opportunity to discuss and explain the work to be carried out.

In addition, by embedding themselves between the damaged vehicle’s owner and the repairer, insurers have managed to confuse the repair process by keeping their customers ignorant of behind-the-scenes negotiations in the repair of their vehicle.

And that folks has got to be bliss for insurance companies. www.paintandpanel.com.au

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SPIES HECKER ACCELERATES DRYING SURFACER “The reliable Permasolid HS Express Surfacer 5250 can normally be sanded after 60 to 120 minutes at 20°C ambient air temperature.

However, if refinishers use the new Permasolid Express Surfacer Accelerator 9250, they can cut drying times at room temperature down to about 30 minutes,” says Spies Hecker product and colour manager for Australia and New Zealand John Nettleton. Offering Permasolid Express Surfacer Accelerator 9250 for use in combination with Permasolid HS Express Surfacer 5250 gives bodyshops a particularly efficient and potentially energy-saving solution for refinish jobs.

EASY TO USE, FLEXIBLE APPLICATION The VOC compliant 2K sanding surfacer can be mixed with HS and VHS hardeners. When mixed with the Permasolid Express Surfacer Accelerator 9250, the 2K sanding surfacer offers good flow properties when applied in two or three spray passes without flash-off times.

ACCELERATED PROCESSES When used together, Permasolid Express Surfacer Accelerator 9250 and Permasolid HS Express Surfacer 5250 delivers benefits to bodyshops that air-dry outside the spray booth.

NEW U-POL ROLL-ON RAPTOR LINER THE LATEST PRODUCTS FROM BOGE BOGE compressors, made in Germany, now offer a medium sized ‘all-in-one’ screw compressor with complete conditioning for use on paint surfaces.

You can now achieve extremely clean, oil-free compressed air with the BOGE ‘Paintline’ compressor.

Oil free compressed air compact design refrigerated air dryer included Galvanised air receiver included Filtration included Direct drive (no belt maintenance) Quiet Disposal of condensate LABS free filter technology removes paint wetting disruptive substances like silicon and oils.

The BOGE Paintline filters are pre-assembled as a single cartridge with free filters and have a long service life.

The oversized design reduces pressure losses with a design that allows for a service life of at least 3,000 hours of operation.

The BOGE ‘Paintline’ machines come in a selection of sizes from 5.5kW at 25cfm to 11kW at 60cfm with some models also offering the VSD option.

For your nearest dealer or service partner contact BOGE office (03) 5940 3266 or visit www.boge.net.au

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There are hundreds of other possible uses for Raptor, including use as a protective coating inside and outside of caravans, camper trailers, 4X4s and RVs. Raptor has been UV tested to 5000 hours so the textured finish stays looking good for many years.

And Raptor is now available in a new kit format: Roll-On Raptor. It is fast and easy to use and is great for application in difficult-to-access areas, for small jobs or wherever it is not convenient to use a spray gun or air compressor.

The kit includes everything you need to cover a standard sized ute tray, and contains two Raptor Liners (black) 750ml, two Raptor Hardener 250ml, one roller handle, two roller heads, two roller trays, two abrasive pads, four disposable gloves, two anti-slip additive and full instructions.

The features of the Roll-On Raptor include: • Protects against corrosion, salt water, chemicals and more • Produces a textured black finish • Easy to use – just mix, shake and roll on More information on U-POL at 02 4731 2655 or visit U-POL.com.au.

www.paintandpanel.com.au

PRODUCTS

MAZDA CHOOSES GLASUIRT FOR SOUL RED CRYSTAL This means that Glasurit is the worldwide supplier for repairs involving the colour that Mazda will introduce on its all-new CX-5.

The certification enables Glasurit to support Mazda dealers and their bodyshop networks in this region with a VOC-compliant, high-quality and efficient solution.

“Mazda and BASF have fostered business relationships around the world for a long time,” said Oliver Birk, head of Key Account Manager Management EMEA at BASF's Coatings division.

“Our excellent collaboration is based on the way we reliably supply Mazda with high-quality products, technical support, efficient processes and our colour development know-how.”

Glasurit is supporting the Mazda network throughout Europe at the launch of Soul Red Crystal on the CX-5.

In addition to its 90 Line premium

refinish paint system, Glasurit is also offering training courses in which the Mazda bodyshop spray painters can learn to repair the unique colour using the sophisticated three-layer application technique.

The colour was developed to perfectly accentuate the car’s dynamic shape. It is composed of three layers – one layer with bright aluminium flakes and one translucent colour layer with highly saturated red pigments – plus clearcoat.

The colour is now available for the all-new Mazda CX-5.

“Our training courses and Glasurit 90 Line will permit all bodyshops partnered with Mazda to perform perfect refinishing jobs for the new colour generation,” Birk explained. “The colour Soul Red Crystal is so complex that we advise bodyshops to get in touch with their Glasurit contact partner before they undertake a refinishing job.”

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September / October 2017 PAINT&PANEL 97

FENDER BENDER

TO INFINITI AND BEYOND INFINITI UNVEILED ITS latest customer designed vehicle, the ‘Prototype 9’, at the 2017 Pebble Beach Concours d’Elegance.

The sleek, open-wheeled electric retro-roadster prototype is a re-imagining of what might have been for a 1940s Infiniti grand prix race car.

The car is powered by a prototype electric motor and battery from Nissan Motor Corporation’s Advanced Powertrain Department.

This nod to the future contrasts with the traditional materials and techniques applied for the Prototype 9’s manufacture, including panels hand-beaten by a team of Takumi - Nissan Motor’s master craftspeople.

Infiniti chairman and president Roland Krueger said the vehicle was a blend of modernity and history, with designers tapping into looks and builds throughout the generations.

“What started as an after-hours idea grew into a fully-fledged prototype; our designers and engineers were excited by the notion of creating a past vision, a nod to our origins.

“They volunteered their own time, more and more staff became involved.

Our teams have proven skills in manufacturing, engineering, design and advanced powertrains, yet they wanted to bring their own traditional craftsmanship to the project.”

GLARING DEFECT FOR PORSCHE IT LOOKS AS though Porsche drivers in the US have just scored themselves a free pair of shades, simply for owning a Porsche.

It appears a defect in the manufacturer’s dashboard colours has caused extra glare for motorists who opted for the Cognac, Luxor Beige, Natural Brown, Platinum Grey, or Sand Beige dashboard.

A class action lawsuit was brought against the company last year, with a settlement reached in December.

Motorists who owned any 2007-2016 Porsche, regardless of model, were entitled to $50 to $175 USD compensation if they bought sunglasses or made any relevant modifications.

Reports indicated that while there was some discomfort caused, no drivers were involved in any costly incidents as a result of the defect.

Porsche must surely be upset with this glaringly obvious defect.

EASING THE TENSION GOOGLE-OWNED AUTONOMOUS CAR company Waymo has just been issued a patent for a technology that makes cars softer.

The technology, focused on pedestrian safety, is designed to soften the blow of accidents both for the vehicle's passenger and the individual hit by the car.

Safety is achieved when the ‘tension members’ within the vehicle, that give the car a rigid surface, increase or decrease in strength when it senses an approaching hazard.

“The vehicle may identify and respond to a potential collision by altering the tension that is applied to one or more tension members, thereby altering the rigidity of the vehicle's surface,” the patent states.

If a hazard is sensed, tiny processors will determine whether a collision is imminent and will become softer by releasing or loosening the tension members.

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