Serving the Business of the Industry Manuel Der Haroutiounian is open to new ideas at Bayview- Steeles Auto Collision ~CSN. HARD TIMES Make tough firing decisions easier with our guide. TOP GEAR Inside BMW’s equipment selection process. REBUILT CLASSICS CARSTAR 360 has style, substance and flair. CARBON FIBRE’S RISE Are you ready for it? WALKING THE WALK SPECIAL REPORT: FUTURE TRENDS AND YEAR IN REVIEW Volume 12, Number 1 l February 2013 l $4.95 l Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2 COLLISIONREPAIRMAG.COM PLUS Exclusive interview with Steve Leal, President of Fix Auto Canada; PDR’s road warriors can help your shop; BASF’s Charity Camaro Auction and much, much more!!! Steve Leal.
Transcript
Serving the Business of the Industry
Manuel Der Haroutiounian
is open tonew ideas at
Bayview- Steeles Auto
Collision~CSN.
HARD TIMESMake toughfiring decisionseasier withour guide.
TOPGEARInside BMW’s equipment selection process.
REBUILT CLASSICSCARSTAR 360 has style, substanceand flair.
CARBON FIBRE’S RISEAre you ready for it?
WALKING THE
WALK
SPECIAL REPORT: FUTURE TRENDS AND YEAR IN REVIEW
Volume 12, Number 1 l February 2013 l $4.95 l Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
COLLISIONREPAIRMAG.COM
PLUS Exclusive interview with Steve Leal, President of Fix Auto Canada; PDR’s road warriors can help your shop; BASF’s Charity Camaro Auction and much, much more!!!
Steve Leal.
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25 walking the walkManuel Der Haroutiounian keeps an open mind at bayview-Steeles auto Collision~CSN.
36 2013: the way foRwaRdWhat to expect in 2013.
YOUR ONLINE SOURCECanada’s collision repair information resource. New articles and top news stories daily. Visit www.collisionrepairmag.com.
on the coveR: Manuel Der Haroutiounian.
Serving the Business of the Industry
Manuel Der Haroutiounian
is open tonew ideas at
Bayview- Steeles Auto
Collision~CSN.
HARD TIMESMake toughfiring decisionseasier withour guide.
TOPGEARInside BMW’s equipment selection process.
REBUILT CLASSICSCARSTAR 360 has style, substanceand flair.
CARBON FIBRE’S RISEAre you ready for it?
WALKING THE
WALK
SPECIAL REPORT: FUTURE TRENDS AND YEAR IN REVIEW
COLLISIONREPAIRMAG.COM
PLUS Exclusive interview with Steve Leal, President of Fix Auto Canada; PDR’s road warriors can help your shop; BASF’s Charity Camaro Auction and much, much more!!!
51
40 once in a lifetimeWhen andy Trudel saw an opportunity in repair, he grabbed hold with both hands.
48 haRd decisionsHow to let staff go.
46 Road waRRioRsHail can boost profits with PDr. Inside CarSTar
360’s custom business.
43 caRbon’s Riseare you ready for cheap and plentiful carbon fibre?
20 insuReR viewpoint by Joe CarvalhoNo substitute.
23 social media by Jonathan BarrickThe social show.
66 last woRd by Mike Daveyrobo revolution.
1310CCIf panel discusses repairer
rated “most important” issues.
audatex and PH Glass announce exclusive partnership at audaVision 2013.
04 collision RepaiR COLLISIONrePaIrMaG.COM
PaSSITONEveryone can benefit from insight.
You have my deepest thanks for reading Collision Repair mag-azine, but I’d like you to do me a favour and try to make sure some other folks read it too.
I’m not talking about your customers in the waiting room. I’ve been in a few shops where they’ve framed an article we did on their business and I love seeing that. I can’t help but feel proud that those shops want their customers to know they’ve appeared in our pages. With that said, this is your magazine, rather than your customers, so there’s no reason to leave it lying around the waiting room.
More to the point, I bet there are other people, people in the business, that would get something from our pages. You know this is as well as anyone, but your busi-ness isn’t just about you.
Your entire staff, from office to produc-tion, has an interest in making sure the business continues to thrive and to grow. It’s much better to pass the magazine on than to leave it lying around the waiting room or your office.
Find one story of interest and pass the magazine on to someone else. It could be anything, from a photo of someone you know to an article you really want a particular member of your staff to read because you think they’ll find value in it.
Our aim, with each column and article, is to provide your staff with a window into the top tier of the business and a view of how others have achieved success. It just might spark something good.
Once the magazine has made the rounds of the shops, please keep passing
it on to others. For example, there may be something you want your insurance part-ners or suppliers to see.
We’ve got more information on hand than ever before. You can carry thou-sands of books in your pocket, and the vast majority of all public knowledge is now available through your phone. The result of this often seems to be that we’re drowning in information, because most of it we couldn’t care less about.
This magazine is concentrated infor-mation, filtered to provide you and your business the best knowledge out there. We have a simple test that we use when
we’re considering an article. Basically, we ask “Does this help collision repairers?” If the answer is “No,” then we don’t run it.
This is information that we believe is going to help you. Take a look through this issue and I guarantee you’re going to find at least one thing that will help. It might be on the production floor. It might be in the office. It might be in dealing with insurers. It might even be something that helps with your per-sonal life, as you struggle to achieve work/life balance.
Once you’ve found something to help yourself, start looking for something to help your staff and your partners. You won’t regret it. CrM
By Darryl Simmons
PubLISHer’S PaGe
find one story of interestand pass the magazine on.
sUBsCriPtionOne-year $29.95 / Two-year $55.95Collision Repair™ magazine is published bi-monthly, and is dedicated to serving the business interests of the collision repair industry. It is published by Media Matters Inc. Material in Collision Repair™ magazine may not be reproduced in any form with out written consent from the publisher. The publisher reserves the right to refuse any advertising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. all facts, opinions, statements appearing in this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by the publisher.
pRinted in Canada issn 1707-6072Canada post Canadian pUBLiCations maiLsaLes pRodUCt agReementno. 40841632RetURn postage gUaRanteed
Send change of address notices and undeliverablecopies to: 86 John Street Thornhill, ON L3T 1y2
Collision Repair magazine is published by Media Matters Inc., publishers of:
magazine
Trainingmatters.caTHE TRAINING PORTAL FOR COLLISION REPAIR
We acknowledge the financial support of the government of Canada through
the Canada periodical Fund of the department of Canadian heritage.
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CarSTar has announced the appointment of Michael Macaluso as Chief Operating Officer and Lisa Mercanti-Ladd as execu-tive Vice President, while MJ Marshall will continue as Vice President finance. This announcement completes CarSTar’s business transition plan that has been shared with all stakeholders over the last three years.
“There comes a point in every successful company when the founders have to step aside and empower new leadership,” said Sam Mercanti, President and CeO of CarSTar automotive Canada.
Mercanti will remain as the Chairman of the board while Larry Jefferies will assume the title of eVP, ex-officio and continue to support CarSTar’s busi-ness development activit ies. Dennis Concordia will continue as VP of Human resources and assume all activities re-lated to organizational effectiveness.
CarSTar has also appointed Darren Lumsden as CarSTar’s new regional Manager in alberta. He will work along-side CarSTar’s regional Director for Western Canada, Lloyd Wheeler and CarSTar’s Quality Systems Specialist for Western Canada, Terry Holowaty. Lumsden will head business develop-ment efforts in the province of alberta, whi le a lso act ing as the f i rs t point o f contac t fo r CarSTar’s a lber ta f ranch ise par tners . Lumsden jo ins CarSTar fol lowing a successful 12 year career with enterprise rent-a-Car in Calgary.
PeoPle on the moveCARStAR announces new exec appointments and appoints Regional manager for Alberta
darren Lumsden.
PPG Canada has announced several changes in its business development and sales or-ganization. Norm angrove is now National business Development and business So-lutions Manager. The promotion expands angrove’s current Canadian business develop-ment responsibilities to include the Canadian business solutions division in his portfolio.
“Moving into this new position is very ex-citing,” said angrove. “Working as a team, we will ensure that we are providing ongoing value and innovation along with the best systems, prod-ucts and processes to maximize our customers’ profits and their customers’ satisfaction.”
Two new team members, Teresa Masotti and Melanie rice, have been added to PPG’s sales division.
Masotti was most recently business Devel-opment Manager, Ontario region, with Hooper Welding enterprises. Prior to that, she spent five years with Lamons Gasket Company and 13 years with russel Metals. Masotti will join the Greater Toronto area sales team.
PPG Canada adds to sales team, expands Angrove’s role
illu
stra
tion
s by
jie
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drive-thru serviceanother vehicle has plowed through the front door of a colli-sion repair facility, this time in Port Jefferson Station, New york. The interesting twist this time, though, is that not only was the vehicle that smashed open the building stolen, it was stolen from inside the shop’s lot! This may be the single worst es-cape route ever chosen.
what’s in a name? People say the ford edsel failed because of its name, but some of the names it could have wound up with were much worse. Some of the suggestions included resilient bullet, Mongoose Civique, Turbotorc and utopian Turtletop, all from Pulitzer winning poet Mari-anne Moore.
too much holiday cheer?a man was pulled over in St. au-gustine, fla., because he was driving erratically. When police pulled him over, they found he had a piece of a traffic sign embedded in his skull from a previous collision! Police say they believe alcohol may have been a factor.
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Vic Wiwchar has joined the Insurance Claims Services division of audatex Canada as Director of business Development.
Wiwchar has 25 years experience in the property and casualty insurance industry, having held senior management positions in a range of capacities within the insurance sector. He earned his Chartered Insurance Professional designation and has sat on and chaired various Insurance bureau of Canada sub-committees.
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Trust.
To learn more about CSN Collision & Glass, visit www.csninc.ca
CSN Collision & Glass and ProColor Celebrate a New Partnership!CSN Collision & Glass and Quebec-based Carrossier ProColor create Canada’s largest and fastest growing national collision network, with over 270 locations to serve your customers.
Together, we are committed to building stronger relationships with all industry stakeholders in order to continue to exceed customer expectations. The same high standards of quality and customer satisfaction are guaranteed at all network locations across the country.
Rest easy knowing you’ve made the right decision. CSN and Carrossier ProColor are dedicated to providing your policyholders with quality repairs and exceptional customer service built on confidence, trust and integrity.
This is a promise we make today and moving forward.
Confidence.
Integrity.
Trust.
To learn more about CSN Collision & Glass, visit www.csninc.ca
CSN Collision & Glass and ProColor Celebrate a New Partnership!CSN Collision & Glass and Quebec-based Carrossier ProColor create Canada’s largest and fastest growing national collision network, with over 270 locations to serve your customers.
Together, we are committed to building stronger relationships with all industry stakeholders in order to continue to exceed customer expectations. The same high standards of quality and customer satisfaction are guaranteed at all network locations across the country.
Rest easy knowing you’ve made the right decision. CSN and Carrossier ProColor are dedicated to providing your policyholders with quality repairs and exceptional customer service built on confidence, trust and integrity.
This is a promise we make today and moving forward.
10 collision RepaiR COLLISIONrePaIrMaG.COM
THe frONT eND
The automotive Industries association of Canada (aIa) will take on the administra-tive duties of the Canadian Collision Industry forum (CCIf). The announcement was made at the recent CCIf meeting held at the Mar-riot Toronto airport hotel where more than 350 industry members gathered to listen to relevant speakers and network.
This decision was made by the CCIf Chair-man’s Council to increase the forum’s ability to take more concrete action on relevant issues.
The transition will officially take place after the two remaining CCIf meetings scheduled for 2013 are completed and is expected to be complete by January of 2014. andrew Shepherd was named as the point man for the transition. Shepherd serves as Director, Collision for aIa, and is in charge of I-Car training in Canada.
“aIa Canada will take over operation of CCIf completely by January 2014, but we’re already building deliverables for the new CCIf,” says Shepherd. “for example, we’re going to start
putting in a system to provide an industry-wide data package covering areas that influence col-lision repair activity. This will mean assembling and analyzing some of the data which is already publicly available but scattered. as we move into 2014 we’ll be addressing the more obvious information gaps and developing the survey and analysis tools required to bring this to the industry - for example regional data on profit-ability, supply cost trends, labour rates, etc.”
another highlight was a presentation by Matthew Ohrnstein of Symphony advisors. Ohrnstein presented facts and figures high-lighting trends in the auto claims economy.
Ohrnstein also moderated a six-person re-pairer panel comprised of David Low of Wolf Collision, Paul Prochilo of Prochilo brothers auto Collision, Kevin Machell-Cox from Craftsman Collision, Michael Macaluso from CarSTar, flavio battilana from CSN and Sam Piercey of budds’ Collision Services.
The panel discussed a number of issues rated as most important by those in at-tendance. ratings were determined using instant response technology that allowed stakeholders to provide their input. The top issues were surviving in a shrinking market, gross margin and ebITDa profitability, vehicle technology, repairability and Oe Certification, human resources and insurer relations, pro-grams and consolidation
During his presentation, Ohrnstein outlined data regarding shrinking profits at insurance companies and their need to control costs. This, combined with a glut of repair facilities who are willing to perform work for low door rates, is leading to a downward pressure on profits for all shops. He predicted that the number of shops in Canada will decrease from around 6000 today to 4000 in 12 years.
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panelists Kevin machell-Cox from Craftsman Collision, Flavio Battilana from Csn Collision & glass, david Low of Wolf Collision in halifax, michael macaluso from CaRstaR automotive Canada, sam piercey of Budds’ Collision services in oakville, ont. and paul prochilo from prochilo Brothers auto Collision in toronto.
andrew Shepherd.
by Darryl Simmons
february 2013 collision RepaiR 11
THe frONT eND
The annual assured Winter blast is a chance for assured auto-motive to give back to their employees and to recognize those individuals within the organization who have made a difference in the past year. Impeccably dressed assured employees and their guests packed the Mississauga Convention Centre for the evening of January 26, 2013.
This year’s assured Winter blast was a little different from those in previous years, as assured automotive has recently ex-panded into the Ottawa market with the formation of assured Ontario east. assured Ontario east was very well represented at the Winter blast.
The assured Winter blast allows staff members from assured’s 43 facilities across Ontario to connect and renew their dedication to the organization’s values. It’s also an opportunity for assured automotive to recognize those facilities and staff who have gone above and beyond in the last year.
assured automotive would like to congratulate the following mem-bers of the organization who received awards for their work in 2012:
customer service excellence awardassured Hamilton
salesexcellence awardassured Leaside
operational excellence awardassured brampton
store of the year excellence awardassured Scarborough West
attilio giancola lifetimeachievement awardHarry Scupham bill Scott
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Assured Automotive recognizes staff at 2013 Winter Blast
The executive management team of assured automotive presents the Customer Service excellence award to the staff of assured Hamilton.
from left: teresa and tony alberquerque and Lynette and david desouza. all are with assured scarborough.
the decade of excellence awardalain beauchamp Chantal Lavigne Sandra bigras Jean Mauviel bob boisvertrob McLeodMichel Carreference Mihaly Claude DelormeMichel St-JeanLouis fitzpatrick
for more information on assured automotive, please visit assuredauto.ca.
by Mike Davey
12 collision RepaiR COLLISIONrePaIrMaG.COM
NeWS
CSN Collision & Glass has partnered with Quebec-based Carrossier ProColor to create Canada’s largest national col-lision network.
Carrossier ProColor will now repre-sent the interest of CSN in Quebec as a member of CSN Collision & Glass. The new strategic alliance will create the largest network of collision repair facilities
in Canada, with over 270 locations.
There are many synergies between t h e t w o o p e r a -tions, in terms of geography, culture, values and vision.
“We’re very well pos i t i oned geo-g r a p h i c a l l y t o
service the needs of our insurance part-ners. This alliance will not only help to strengthen and grow both CSN and Car-rossier ProColor, but will also allow us to provide a complete national solution,” said flavio battilan, Chief Operating Officer of CSN Collision & Glass. “Having an ex-tremely strong partner in Quebec will allow us to focus more resources on expansions into markets such as Northern Ontario, al-berta and other parts of Canada.”
Michel Charbonneau heads up the Car-rossier ProColor network for uni-Select. He says that Carrossier ProColor stores in Quebec will continue to operate under that name.
“Our current head office will continue
to manage the Carrosier ProColor part of the network, at the same time working closely with CSN’s head office on the na-tional level,” says Charbonneau.
Charbonneau also says that the two networks already had strong similarities.
“all of the businesses making up the new network are collision repair facilities selected for their high levels of perfor-mance and their standards of excellence, which provides a superior quality of ser-vice,” said Charbonneau. “Customer satisfaction and network KPI performance are the highest priorities for both networks, and we will continue to offer a high stan-dard of service across the country.”
The CSN/Carrossier ProColor part-nership has created Canada’s largest network, but battilana says more growth is planned for the future.
“Our goal in five years is to get to 350 stores nationwide,” said battilana. “Our research indicated that we could grow in Quebec organically, but it would have taken much longer. More important than speed, though, this partnership offers many strengths in addition to simply in-
c r e a s i n g t h e number of shops in the network.”
One o f those advantages is that Carrossier ProColor isn’t just a network of collision repair facilities. It’s also a buying group,
leveraging the power of uni-Select.“This partnership will help provide CSN
stores with increased buying power and more options,” said Charbonneau. “There are also strategic advantages for both companies. We offer both a national so-lution to insurers, while at the same time providing a regional solution in Quebec to the customers who are doing business in Quebec only. This alliance gives us the power of a buying group and a national network rolled into one.”
battilana and Charbonneau both note that providing the insurance industry with a national standard of performance is the partnership’s primary goal.
“CSN and Carrossier ProColor have always had very similar goals: to grow a sustainable, managed network that delivers high quality repairs and key per-formance indicators, and provide a high level of satisfaction for our stores,” says battilana. “Strategically, this aligns us with a strong competitor who has now become a partner. We’re already learning from each other, and we’re going to continue to learn and grow as we share experiences over the coming years.”
for more information on CSN Collision & Glass, please visit csninc.ca.
csn and caRRossieR pRocoloR paRtneR to cReate nation’s laRgest netwoRk
Sue Higgs with her new car, courtesy of Superior Collision~CSN, CSN Collision and Glass and akzoNobel.
Flavio Battilan.
michelCharbonneau.
by Mike Davey
february 2013 collision RepaiR 13
NeWS
four main trends will impact future auto-motive claims and repair costs, according to Mike anderson, Vice President, Data & analytics for audatex. anderson discussed these trends during his presentation at au-daVision Toronto 2013 held at the Marriot Toronto airport, on friday, January 25.
audaVision Toronto 2013 got off to a strong start in the morning, with an introduction and welcoming remarks from anthony Giagna-covo, Managing Director of audatex Canada.
Giagnocovo noted that one of the compa-ny’s key strengths was its worldwide reach, coupled with a dedication to delivering tailored solutions on the local level. The Ca-nadian auto claims economy has already contributed to this, with the Canadian-de-veloped autosource Vehicle replacement Service, soon to go global. Giagnacovo also discussed audatex’s ongoing commitment to Canada, noting that the staff at audatex Canada has grown from 17 to over 60 in the last year alone. “That’s Canadians serving Canadians,” he said.
Mike anderson followed Giagnacovo, pre-senting “Industry Trends and the Impact on future Claim & repairs Costs.” anderson identified four main trends, the impacts they will have on the auto claims economy, and the emerging needs that each trend reveals:adoption of vehicle active safety man-agement systems and the increase in use of alternative materials: These fac-tors are projected to lead to fewer claims and changes in the repair process. The in-creased use of alternative materials drives a need to identify precisely which option package was used when the vehicle rolled off the assembly line.
“a lot of Mercedes-benz owners think they have leather seats, but they don’t,” said anderson. a simple mistake like this can boost repair costs significantly. One audatex tool, audaVIN, provides repairers and claims professionals with the exact op-tions used in constructing the vehicle.profitability: Investment income has been close to zero for the last few years, leading to increased pressure on claims departments to perform increased effi-ciencies at a lower price. big data & analytics: More data is available than ever before, but using it requires big data mining capabilities and an evaluation of which data really matters. anderson dis-cussed some of the ways audatex is allowing
stakeholders to ac-cess and use this data to increase efficiencies. gen y impact : The consumer de-mand for real-time, mobi le informa-tion is not limited to members of Generation y, but young people tend to have higher communica-tions expectations. anderson notes that this shows a need for more consumer self-service tools, process automation and mobile accessibility solutions.
The final presentation of the morning was led by Scott Westbrook, VP of Sales and Co-founder of aPu Solutions. Westbrook’s presentation, “benefits of a real-Time Parts and Purchasing Solution,” focused on using the audaNet platform to increase efficien-cies and lower costs in parts ordering.
“right now, we’re searching every al-ternative parts supplier in Toronto who is part of the program. It takes about 60 seconds, but once audaNet is released for Canada, that 60 second wait will dis-appear,” said Westbrook during a live demonstration of the software.
Sessions resumed after a short break for lunch with “autoWatch: enhancing Customer Service in the repair Process,” presented by Dave Henderson, executive Director of repair Status at audatex and the founder of autoWatch. Leslie Persaud, audatex Canada’s Director, Product Man-agement next took stakeholders through a discussion of the company’s next genera-tion automotive claims and collision repair management platform, audaNet.
rounding out the day’s presentations was “Connected to your Customers’ Cars: How could you use direct access to vehicle acci-dent data to enhance the claims process?,” led by richard Woodruff and David rhodes, respectively Co-founder/VP business De-velopment and VP Partner Development for moj.io, a company that has developed a platform to deliver data directly from cars.
audatex also announced an exclusive agreement with PH autoglass to extend that company’s search functionality to au-datex Canada’s core estimatics service augmented by aPu Solutions, supplying real-time parts inventory data to the colli-sion repair value chain.
Trends, “Big Data” and customer connection at AudaVision Toronto 2013
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14 collision RepaiR COLLISIONrePaIrMaG.COM
NeWS
Marking a milestone feels even better when you can help a good cause. The Canadian International au-toShow celebrated its 40th anniversary with a Gala char i ty ce lebr i ty d inner and dance, with proceeds going to the Toronto auto-mobile Dealers foundation (TaDf), in i ts support of ronald McDonald House, the Tr i l l i um Gi f t o f L i fe Network and the Canadian Sa fe Schoo ls Ne twork .
The event took place at the Metro Toronto Convention Centre.
Scott Goodyear, world renowned racing champion, served as emcee. also on hand were Canadian racing greats alex Tagliani and Paul Tracy. Dan aykroyd was the fea-ture celebrity.
The live charity auction of a limited pro-duction, Canadian International autoShow 40th anniversary Camaro ZL1 as well as numerous one-of-a-kind collectibles was a major highlight of the evening.
The charity auction was sponsored in part by baSf Canada’s coatings division. The limited edition Camaro ZL1 received a professional baSf custom paint job with Tribute graphics, designed and applied by renowned artist ron Gibbs. The total value of the unique graphics and paint alone is more than $30,000.
for more infomration on the Canadian International auto Show, p lease v is i t autoshow.ca.
autoshow celebRates 40th anniveRsaRy with dan aykRoyd, Racing gReats and a basf painted camaRo auction
from left: rick Valin of Basf; sam piercey of Budds’ Collision services; sandy Liguori, incoming president of the 2013 autoshow; harry dhanjal of BasF and Laurent tainturier, president of BasF Canada.
Radio and tV personality mike Bullard and darryl simmons, publisher of Collision Repair magazine.
dan aykroyd and pete degiuli of BasF. aykroyd was a feature celebrity at the event.
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16 collision RepaiR COLLISIONrePaIrMaG.COM
Teach your employees how to play and secure your future.
i once heard someone say that most business people start planning their succession and retirement about five years later than they should have. With this in mind, at age 56, I decided to start planning.
None of my children are interested in the busi-ness so my options are:
1. Sell the assets and rent out the building. Not so good for my employees.2. Sell out to a consolidator. Might be a good thing for my employees. Might not be.3. Sell to my existing employees. Sounds good, but where do they get the money?
Most of my staff are younger people, starting into their child-rearing years. They don’t have a lot of cash to invest. They do, however, have terrific energy, great attitudes and a fantastic work ethic, so I decided to figure out a way to
help them pursue this business, if that is what they want to do.
My wife and I decided to utilize the resources of The Great Game of Business (greatgame.com) so that we could teach our people how business works and what it takes to survive financially in the collision business.
open the booksIf you’ve heard of the term Open-Book Manage-ment, you might understand it to mean sharing financial information with employees. Although that is true, it is just one small piece of a much larger operating system we call The Great Game of Business. Frankly, you can share all the data in the world with your people; the question is, will they understand it, and what will they do with it?
The Great Game of Business is a way of running your company that gets everyone, at all levels of the business, as informed, involved and
By Tom Bissonnette
GreaTGaMe
PraIrIe VIeW
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february 2013 collision RepaiR 17
engaged as the owner is in making the company successful. It’s about fully engaging employees in the business by teaching them how the business works and what is critical to success.
increase understandingThis includes understanding how profitability is driven, how assets are used, how cash is gener-ated, but most importantly how their day-to-day actions and decisions can make or break the business. Just from this, you can see that The Great Game of Business goes far beyond simply opening the books and helps to generate a new kind of culture.
Jack Stack, one of the founders of the Great Game, talks about the Ultimate Higher Law of Business: “When you appeal to the highest level of thinking, you get the highest level of performance.”
We want to appeal to our employees and have them think like owners. If we can do that, we can help them to become owners. Currently, we have a number of employees that are looking at buying a small piece of
our business so that they have skin in the game. From there we plan to work with them to make our business the best it can be and eventually sell the entire business to them at a fair market value. Sound crazy?
Think about it. How are you going to transition from your business to a happy retirement and get paid a fair dollar for what your business is worth? CrM
tom Bissonnette is the owner/operator of parr auto Body, a collision repair facility located in saskatoon, sK. he can be reached at [email protected].
PraIrIe VIeW
we want to aPPeaL to oUr emPLoyees and haVe them thinK LiKe oWneRs.
TRAINED EQUIPPED
Assured Automotiveenough to be properly
& NOT BECAUSE WE HAVE TO, BUT BECAUSE WE WANT TO.
“Assured Staff – Achieve More”Assured Automotive honours our staff for their commitment to continuous improvement. Over fifty of Assured Automotive’s Administrative Staff recently participated in an Authentic Impact Workshop. The purpose of the Workshop was to provide the tools and knowledge employees need to put meaning in their work, get a sense of purpose and satisfaction from their job and turn obstacles into powerful opportunities. Using a continuous improvementcycle of insight and action, the results continue long after the training is complete. At Assured we believe that our staff is the key to oursuccess; to this end we would like to thank all of our stafffor their contribution and dedication to Assured Automotive.
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18 collision RepaiR COLLISIONrePaIrMaG.COM
TOuGHLOVeWhen the going gets tough ...
when insurers send in appraisers, most of the time you have already written the sheet. They’re basically reviewing it to
make sure it meets their standards. It keeps you honest and the partners happy, but remember that they are being paid.
It sometimes seems like we have essen-tially taken their place, and we do it for nothing. We invested in cameras, computers, more staff, etc. That’s the nature of the game, but I think most of us would agree that it’s got to be a two-way street. As an industry, I think we need to see some movement from our partners on some of the challenges that we have at the shop level.
no surprisesHave you run an ad looking for techs lately? It’s no surprise that there’s no one out there. We did this to ourselves, or at least we’re letting some of the people in our business get away with doing it to themselves and the rest of us too.
Our insurance partners need to protect their bottom line. That’s pretty simple, but the fact of the matter is that we need to get paid what it takes to bring people into the trade and buy new equipment. We also need to get rid of caps on materials. Have you a done a material cost calculation on paint lately? If you have, you know you’re losing money, a lot of money in most cases.
How much can you take before you sell out and buy a coffee shop? There’s another choice, but you might not like it. We can sit down with our partners and figure out exactly what we need to do and what they need to do, to make sure that the high-quality and progressive shops have enough stability to not just stay at the same level, but move our businesses forward and
By Sam Piercey
continue to invest in training, equipment and processes. I’ve got a couple of sugges-tions below on what I think a few of our top priorities should be.
What to doFirst off, we need to get any cap on mate-rials removed. The guys in the paint shop aren’t drinking the stuff, they’re using what they need to use to paint the car! Our part-ners in the paint industry and the refinish equipment industry are always looking for ways to make sure the paint we mix isn’t wasted, and we love them for it. We’re not flushing this stuff down the drain. We’re using it to do our jobs.
Second, we need to start charging some
of our customers up front, and when I say that, I mean the customers actually picking up the car when the repair is done. If we haven’t been paid, they don’t get to take their vehicle.
That may seem extreme, but the problem is that some companies send pay-able cheques to the customer, and they’re made out as payable to both the shop and the policy holder. Guess what? Some of those policy holders go ahead and cash the cheque. Surprise! Now we’re left trying to collect what we’re owed from them.
Customers aren’t going to like forking over their own money to get their car back, and they’re going to complain to their in-surance company. The insurer isn’t going to like it much either. But hey, they call it tough love for a reason. CrM
sam piercey is the co-owner of Budds' Collision services in oakville, on. sam is a long-time Coyote mem- ber and sits on many boards and committees. he can be reached at [email protected].
POINT bLaNK WITH PIerCey
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NOMeDIOCrITyStop tolerating inconsistency, and mediocrity will disappear.
i came across a quote from Jim Collins, best known as the author of “Good to Great.” He states: “The signature of mediocrity is not an unwillingness to change. The signature of me-diocrity is chronic inconsistency.”
In every business I have worked with I find this to be true. Some things get done well one time and then not as well another time. A case in point is a client company I visited where we had instituted a scheduling program to better con-trol work flow for their production. It was off and running well two months prior. I arrived for a follow-up visit to find that they were using the system around 50 to 60 per cent of the time. In other words, inconsistently. What were the re-sults? Chaos!
Another area where I see inconsistency, medioc-rity, is in diagnostics. We call it “Blueprinting” or “Repair Planning.” I see it as a terrible tease. When it is done properly there is a smooth production flow. Then someone has a “better idea,” usually to go back to what they used to do, and then every-thing falls off the rails again.
Fear of changeThe true enemy of greatness in business is this inconsistency in performance. What causes that inconsistency? Myriad reasons but one of the most common I found is complacency or satisfaction with the status quo. To me that is fear. People are afraid to make a full commitment to a new way of being. They have reached a certain level of com-fort and go into what I call “preserve mode” which means let’s not get too far out of the average way of doing things.
That is where the call for great leaders comes in. Without a great leader who is willing to look at bold ideas and then present them in a safe way so that the followers can support the new initiatives forthcoming, nothing will get done. The followers will not do it on their own. Not
because they do not want the benefits of a better way, but because they cannot connect the dots between their current position and where they potentially could be.
make change okayIn leadership the job entails more that looking at new ideas. You must make it okay for people to accept the changes necessary to affect improve-ment. Followers are willing to change if shown an acceptable way to do so.
What follows next is the need to root out the inconsistency that will creep back into people’s behaviors over time. Once a habit is formed, it can be very hard to break, even after a commitment to do so is made. Holding people accountable for
the promises they make in implementing new methods and processes is one of the most impor-tant things a leader has to do.
A leader often figures that everyone else can see the same benefits that they see. To the leader it is a “no-brainer” that we should do this and ev-eryone will support it. That’s a mistake as others do not see things exactly like we do. Accept that truth and make your life easier.
Many leaders also do not see themselves as helpers. They like to think of themselves in a more romantic fashion, riding the great steed, leading the army into victory, always looking for-ward. Like the old saying says “Get off your high horse.” Your job is to constantly help others do their job better today than they did it yesterday. Once that mindset is firmly entrenched in your being and your behavior shows it, then you will be the one who’s driving! CrM
By Jay Perry
Jay perry is the founder and owner of automotive Business Consultants (aBC), a performance coaching company spe- cializing in the automotive service in-dustry. he can be reached via e-mail at [email protected].
WHO’S DrIVING?
HoLding PeoPLe aCCoUntaBLe ... is one oF the most impoRtant things a LeadeR Can do.
20 collision RepaiR COLLISIONrePaIrMaG.COM
NOSubSTITuTe Accreditation can’t beat conscience and training.
iwas reading a recent copy of Colli s ion Repair magazine when I came across an article entitled “The Coming Storm.” I felt it was appropriate to provide one insurance company’s point of view on this subject.
The collision industry can’t and shouldn’t expect the insurance industry to provide them with an accreditation program. Facilitating such a pro-gram would require substantial resources and a governing body to make sure that compliance is in place along with regular enforcement.
Insurance companies work in a highly regulated environment and therefore are subject to an overwhelming amount of regulations. Trust me,
you don’t want to be regulated by an entity that isn’t fully aware of the collision repair industry.
I don’t believe anyone knows and understands the collision industry better than the collision industry. Don’t let someone that’s not in your business provide you with what they believe to be accreditation. The world of the collision repairer is complex. Accreditation will never be a substitute for a good conscience and regular training.
Today we have many great independent repair facilities that consistently produce high quality re-pairs. We also have a number of banner groups with many facilities; this is where it gets interesting. I will come back to this point, but first I have to comment on the insurance company sending clients to ill-equipped repair facilities to save money. I sit on various panels and love to network with my insurance peers. In over 24 years in this business I have yet to hear anyone say, “Why don’t we send our customer to an inferior facility so that we can save a dollar?”
It is the exact opposite. Our VP of claims, Rocco Neglia, maintains a constant vigil on what our
clients want and need. He is always fully aware of industry changes and consistently drives for best-in-class service and workmanship. We guarantee the work for life! We continue to insure these clients, so why would insurers introduce additional exposure and liability? Our goal is, and has always been, to have the vehicle returned to pre-loss con-dition. We would never place our clients at risk.
Back to the accreditation. The great facilities w i l l c ont i nu e d oi ng g re at work . T he b a d facilit ies wil l continue doing bad work and accreditation to an industry of over 5000 facilities may never come to be. But what can happen is the following: banners have the leadership, the will and
the wherewithal to handle this task within their organizations. These large organizations can de-liver consistency across the board, much like the big coffee or burger chains. You always know what it’s going to look like and you can taste it before you reach the drive through window. This may not be considered accreditation, but it’s leaps and bounds better than nothing.
In closing, I say the race is on. Who wil l develop a standard repair and refinish accreditation program that is widely accepted and viewed as checking all the boxes? Who will deliver the message to the insurers and the driving public that they are equipped and trained? Who will become the next household name in collision repair? Time will tell, let’s watch and see what happens. I’m looking forward to it! CrM
By Joe Carvalho
Joe Carvalho is national, manager appraisals for economical insurance. he can be reached via email to [email protected].
we ContinUe to insUre tHese CLients, so WhY WoULd insUReRs intRodUCe additonaL eXposURe and LiaBiLitY?
INSurer VIeWPOINT
HOW TO CHOOSE yOur network ?
Any network thAt scores lower thAn 75 points will not live up to your expectAtions.
Choosing a network is an important decision. Fix Auto has put together this exercise to make it easier. Rate three networks, and compare the results.
0 points — hopeless
2 points — weak
4 points — average
6 points — good
8 points — very good
10 points — excellent ? ?
Rate the networks from 1 to 10 on each of the following criteria, then add up the totals.
Networks >
1 Leadership
2 Network image
3 Customer service
4 Freedom of action
5 Member selection
6 Commitment
7 Training and support
8 Relations with insurers
9 Marketing
10 Innovation and technology
total per Network / 100
1 2 3
22 collision RepaiR COLLISIONrePaIrMaG.COM
PHONyMeTer Power it up, and point it at yourself first.
want your business to be extraordi-nary? I mean ... extra-ordinary? It starts with you. But in a way different from what you’ve ever heard before.
Extraordinar y accompl ishment requires extraordinary commitment. Not just your own. But also from others who believe in you and your business. Not just enough to trade you 40 hours a week for pay, but to gift you with their zeal.
People only “gift their zeal” to one who’s authentic to them and in whom they believe. That’s the only kind of person who can inspire them to
feel part of something special and cared for. It took me a while to figure that out. I mis-
spent some of my career trying to be admired rather than understood and believed. It felt like putting on a costume every day that didn’t quite fit. I even had some successes in that get-up. But looking back, I see now that those laurels were won by others, not me. People in my organiza-tions who were better understood and in whom others believed.
So, are you authentic and believed in your organization? Pause before you respond. A lot of people answer yes right away, and a lot of them shouldn’t. The phony at the top is always the last one to know. My own make-over, from a wan-nabe Bonaparte to aspirant Braveheart, wasn’t too difficult. But it did take willingness to accept that I wasn’t who I wanted to be at work. And a commitment to get it right. It starts with deciding you like yourself. It’s the first step in allowing others to see you authentically. I got there by making a list of things I liked most about myself and a list of things I hoped no one would ever find out. It was a sobering moment.
The first list outweighed the second, but there definitely were items on the second list that embar-rassed me and I needed to fix. After fixing those, I really didn’t care whether people knew about the others that were left. There were enough in the first category to carry the day. Nobody’s perfect.
Next, power up your “Phony Meter.” It’s the little device we all have that signals when we’re trying to be something other than who we really are. But we only hear it if we’re listening for it. And a lot of us never turn it on.
When you first start paying attention, it goes off a lot. But with time, less frequently. That’s when
people are starting to develop a better under-standing of who you are and when you start feeling the same thing. Deeper comfort and satisfaction.
No more “deer in the xenons” when something goes wrong. Know that you’re good. Damn good. Your sense of who you are is solid and there’s nothing to hide.
Your authentic belief in yourself is what’s authentic to others. It’s what they seek. To be inspired. To make them feel part of something special, and proud. That anchors a depth of follow-ership that no guy in a costume can ever achieve.
What does it take? It takes courage and humility to find out how you are perceived, and to think hard about how you need to be to build the business you want and align your thinking and behavior assiduously with that. That’s what creates an extra-ordinary company. It’s all up to you! CrM
By Dick Cross
dick Cross is an eight-time turnaround Ceo, private equity partner, consultant, the originator of the mid tier presidents Course for executives at harvard, frequent speaker, chairman and member of numerous boards, and author of the book “Just Run it!” he can be reached at [email protected].
VIeW frOM THe TOP
are yoU aUtHentiC and BeLieVed in yoUr organization?
paUse BeFoRe YoU Respond.
february 2013 collision RepaiR 23
SOCIaLSHOWSocial media has replaced trade shows as the most effective way to be immersed in the industry.
another season of big trade shows is behind us for another year, making this a good time to reflect on the ex-citement generated by those traveling to collision repair meccas. Attendees
immerse themselves in the culture, technology, and energy of thousands of others involved in the in-dustry. What was once the only game in town for learning about new products, industry trends and sourcing, trade shows are being overshadowed by social media - and it doesn’t stop when the trade show season does.
No longer do we need to wait a whole year to research the latest and greatest technologies. In-novations and new concepts are continuously posted on company websites. No longer do we need to travel across the country to learn from industry experts. Online educational resources, white papers, and webinars provide great training value whenever you need it.
While trade shows still display much of the content found online and on social media, much of the value of attending comes from networking with other industry professionals. This can also be accomplished via social media by attendees, journalists, exhibitors and show organizers after the show ends.
Check out pictures, videos, and live coverage from the event. It allows you to archive your expe-rience for future reference. Tweets, Facebook posts, Tumblr links and any other social content you share is all permanent, searchable, and easily accessible.
It also allows the show to reach people who weren’t able to make the trip. By sharing content from the show floor on social media, your com-
munities benefit from your journey. You become a reporter for your audience directly from the show, offering real-time coverage, opinion and advice.
Apart from greater audience and publicity, so-cial media feedback on the show allows exhibitors to better plan for the next show. The feedback gar-nered from the web enables the show’s organizers to design the event attuned to your input. It’s your chance to influence the show for the better by letting them know what you enjoyed and what you didn’t. Why would exhibitors want to waste time, money, show floor space, and your attention on displays and
activities that you don’t care about? So take advantage of the opportunity to design the show your way.
Lastly, social involvement at a major industry event is a fantastic brand-building opportunity for your business. It allows you to inject some personality into your business’ social presence by showcasing what you deem to be important, pertinent and entertaining. Conversely, you can downplay any unpopular aspects. It allows you to show that your business is invested in the future and towards new tools, techniques and processes. It allows you to demonstrate that your involve-ment in the industry goes far beyond just ‘work’ - but rather that it’s your passion. So get excited, fire up that smartphone, and share all the great stuff you come across this year. I look forward to sharing with you! CrM
By Jonathan Barrick
Jonathan Barrick is the marketing manager for global Finishing solutions, and a strong proponet of social media for business. he can be reached at 705-719-4014 or via email to [email protected].
SOCIaL MeDIa
wHat was onCe tHe onLy game in town for Learning aBoUt new ProdUCts,
indUstry trends and soUrCing, trade sHows aRe Being oVeRshadoWed BY soCiaL media.
february 2013 collision RepaiR 25
PrOfILeS Of SuCCeSS
Manuel Der Haroutiounian is open to new ideas at Bayview-Steeles Auto Collision~CSN. By Mike Davey
It takes courage to leave everything you know
behind and start a new life somewhere else.
Even a seemingly simple move from one part
of the country to another will involve adjusting
to a different culture. Moving to a completely
different country, with a completely different
language and set of customs, isn’t for the faint
of heart. Of course, it helps if you’ve got really
good reasons for leaving in the first place.
StreetSmart
26 collision RepaiR COLLISIONrePaIrMaG.COM
PrOfILeS Of SuCCeSS
Lebanon wasn’t a comfortable place to be in 1974 when Manuel Der Harou-tiounian decided to emigrate to Canada. Manuel is the owner of Bayview-Steeles Auto Collision~CSN in Thornhill, Ont.
The Lebanese Civil War, which lasted from 1975 to 1990, was already brewing when Manuel made the decision to build a new life in Canada. Among other effects, the conflict resulted in a mass exodus of almost one million people from Leb-anon. Manuel made his decision early, but leaving still wasn’t simple.
“We decided to leave when the prob-lems, started, but it wasn’t easy to do it,” he says. “You had to go through the whole process of finding sponsors only to have them rejected.”
It was tough and anything but straight-forward. In fact, Manuel first left Lebanon to go to Cypress. From there, he applied for refugee status and finally made his way to Canada in 1976.
Manuel worked in a number of indus-tries over the next few years, including welding, construction and in a machine shop, but he always knew that he wanted to be a business owner and the auto in-dustry was in his blood.
“My father owned a muffler shop in the middle east, and I would spend a lot
of time there on school breaks. Not nec-essarily working, but always observing,” he says.
A childhood spent observing the way the business worked paid off when Manuel was 17 years old. His father lost the use of his right hand, and Manuel took over management of the muffler shop. It was an experience that would be invaluable a few years later when he opened his own shop.
Even before he landed in Canada, Manuel knew he wanted to be a business
owner. However, adjusting to a new cul-ture as a business owner requires even more work than it does for the average person. It’s not just cultural. By-laws and regulations must be adhered to, and often you must learn new ways of relating to customers. By 1979,
Manuel was ready. He opened his f irst shop with his
brother that year. Ken Der Haroutiounian was already a proficient autobody techni-cian, so opening a collision repair facility
with RepaiReRs woRking side by side with
insuReRs and the oem,
theRe’s no limit to what
we could accomplish.
- Manuel Der HaroutiounianCap
“
february 2013 collision RepaiR 27
PrOfILeS Of SuCCeSS
was a natural move. The brothers opened their shop as some of the first tenants in a newly-built industrial strip mall, just down the street from Bayview-Steeles Auto Collision~CSN’s current facility.
The first shop was only 4,000 sq. ft. in size and remained that way for a number of years. However, in 1992, the Der Haroutiounians decided to part ways, with Ken leaving to open a new facility in Fresno, Calif. Manuel took over as sole owner at that point, with a mission to enhance the business.
Advancement was swift . By 1996, Bayview-Steeles Auto Collision~CSN expanded into the unit next door, adding another 6,000 sq. ft. of production space. Soon even that wasn’t enough, and the business moved to its current location, a 16,000 sq. ft. modern facility located near the busy intersection of Bayview and Steeles.
Manuel says it was a desire to en-hance the business that led him to join CSN in the early days of the network. In fact, his was the 16th shop to join CSN, a network that now consists of over 200 facilities across Canada.
“CSN approached me with their vi-sion, and I liked the idea of a network,” says Manuel. “I’ve always believed that the trade should be more friendly than hostile. It’s good to have people share ideas on how to improve and prosper.”
This philosophy of communication and openness finds expression in his views on working with insurance partners.
“I’ve always wanted to see us working with insurers to deliver quality. I think the key to working together is to share ideas, not impose them. The insurance compa-nies have their shareholders to consider, but so do we. What are the employees who depend on our businesses to support their families if not shareholders? There has to be a mutual benefit, or it won’t last,” he says. “We need the opportunity to make enough money not just to survive, but to enhance and improve. Without that, sooner or later there won’t enough high-quality shops left.”
Although there’s question that the in-dustry has improved and continues to do so, Manuel says the improvements made so far simply aren’t enough.
“As an industry, we achieved a higher level of cleanliness. We improved our re-ception area and made our facilities more receptive to female customers, but there
are still many areas we need to improve,” he says, noting that training is a bigger concern than it has ever been before.
“I-CAR can provide us with a good base, but we need to have our techs trained on the very latest OEM procedures. Frankly, the OEM are not helping us to learn to fix their cars,” says Manuel.
This is critical in the modern era, when vehicles are more advanced and more complex than at any other time in history. High fuel efficiency, advanced electronics and continuous improvements to crash protection come with a cost: vehicles that require a repair technician to have a thor-ough knowledge of the construction and design of that particular car. Manuel does not understand why the OEM are not more willing to share this information.
“If ever dealership had a collision centre, then I could understand this at-titude, but I don’t think it’s even 10 per cent. They rely on independents to serve their customers,” he says. Manuel makes it clear that he believes that this could be of mutual benefit.
“If I’m willing to pay for the training and pay my techs for their time so they can learn exactly how those cars work, then the manufacturer will have assur-ances that one of their cars in my shop
will be repaired properly. Offer inde-pendents the training you already offer to your dealerships, and there will be more technicians able to repair your ve-hicles and help ensure the safety of your customers.”
A number of car manufacturers, most prominently Toyota and BMW, have pro-grams that allow a dealership to sponsor an independent repair facility for com-pany-specific training. However, even this system has its disadvantages, and they’re not all on the collision shop’s side of the equation.
“We work with a local dealership that uses one shop for their heavy hits, but that shop doesn’t have the time to handle the smaller stuff,” says Manuel. “Unfortunately, the dealership can only sponsor one shop, regardless of the situation. In another case, a dealership likes my shop and wants to sponsor us, but we’re technically outside of their territory, despite being close by.”
The solution Manuel proposes is sim-ilar to how he feels the collision repair industry has progressed internally: open-ness and sharing of ideas.
“Alone, we can only do so much. With repairers working side by side with in-surers and the OEM, there’s no limit to what we could accomplish.” CrM
above: Jerry st. Rose prepares a part for painting. opposite page, bottom: noubar ohannessian working on a customer’s door.
Steve Leal of Fix Auto on amalgamation, advances and resistance to change.
Collision Repair magazine is pleased to introduce Executive Vision, a new series focusing on discussions with key players, their views on the present in-
dustry and their vision for the future. In this issue, Collision Repair magazine’s
editor Mike Davey speaks with Steve Leal, president of Fix Auto Canada, to discuss his vision for the network and the industry.
Collision Repair magazine: hello steve. thanks for speaking with us. let’s start at the beginning. how did you get into the business of collision repair? Steve Leal: I started in the car rental busi-ness after studying economics at Wilfred Laurier University. I was in the business for a few years when some of the shop owners I had met told me they wanted to start their own rental fleet. As it happened, I wanted to learn more about the collision repair
industry. I took a job with them, both learning how to run shops and starting their car rental fleet. I knew I wanted my own shop after I worked with them for a while, so I bought my first collision centre in my home town of Cambridge.
CRM: your first shop started as an independent. why did you choose to align your business with fix auto, rather than remaining an independent or joining another network? SL: From the beginning, I knew I wanted to align myself with a network or franchise, because I knew that our business was one of the last to change, but that change was already happening. Our industry is about 10 to 15 years behind most other indus-tries in terms of consolidation, and we know from that it’s much easier to secure yourself and your business if you’re part of something bigger.
When I looked at Fix Auto, I found that their brand presence was very strong, marketing was very strong, and they had a very strong presence with insurance car-riers. Overall, the pricing was the best bang for the buck, and I could see the net-work moving towards providing more and more benefits for the stores.
CRM: a few years later, you made the decision to purchase fix auto ontario. what led you to that decision?SL: I knew there were changes I wanted to help make in the industry. The decision I faced was either to start buying stores and become an MSO, or buy a franchise system. I wanted to see if I could help to better the
industry for the shops. After I purchased Fix Auto Ontario, we later went to take the Alberta and Atlantic territories.
CRM: recently those divisions amalgamated with the rest of the canadian organization, with yourself at the helm. what is your vision for fix auto canada? SL: Under the amalgamation, Fix Auto be-comes one company, able to execute plans better and faster, serve customers more ef-fectively and use head office resources to full capacity. I envision us on one paint line, one management system and one brand nationwide to better serve our insur-ance customers. We’re going to make sure the Fix Auto network is the benchmark and maintains our reputation of being the first ones to adopt needed changes.
CRM: what do you see as some of the biggest challenges facing the collision repair industry as a whole? SL: The biggest challenge really is resis-tance to change. It’s guys saying, “It was fine for the last 20 years!” They’re going to have to lose that attitude, because the industry will change more in the next five years than it did in the last 15. We’re al-ready seeing evidence of those changes. Guys who said they would never be part of a banner, franchise or network, even the big independents who thought them-selves untouchable have often found that they have to align themselves with a larger group.
Advancing technology, parts procure-ment programs and the need for lean
february 2013 collision RepaiR 29
eXeCuTIVe VISION
We’re going to leverage both of our skill sets going forward.
CRM: what does the future hold for fix auto? SL: We’re going to see lots of success for our strategic partners, in part due to our drive towards uniformity of processes and technological services. This will help position us as the preferred solu-tion for insurers and motorists. Our goal is to make sure people do business with Fix Auto because they want to, not be-cause they have to.
We’ve had a lot of firsts over the years. I love to be part of something innova-tive, and we’re going to be the first group
to offer this high level of uni-formity and consistency
in a l l of our stores , nationwide. CrM
position entail and what differences will there be between the Duplantie presidency and your own? SL: Manon will continue to support Fix Auto Canada in a number of ways. For ex-ample, right now she’s working on finishing the brand revisions we started in 2012.
The first thing for us is to finish what she started, primarily the integration, network-wide, of our standard oper-ating procedures, ensuring that every store in the network is using the same paint line, the same management system, and so on. We’ve removed the barriers of provinces and we’re improving national communications.
One thing I bring is a strong background in the shop and with opera-tions, while Manon is very strong on sales and marketing.
processes are challenging for the shops, but at least everyone now realizes that they have to do something if they want to survive. It’s forcing repair facilities to be more efficient.
CRM: fix auto was founded in canada, but it has a truly international presence. Does the existence of fix auto uK and fix auto us help fix auto canada? SL: It gives us insight into what’s happening around the world, which gives us a com-petitive advantage, especially when we’re dealing with global insurance carriers.
CRM: fix auto has traditionally had a very strong presence in Quebec. two of the other major networks
have recently announced large scale sign-ups in that province. how will this affect fix auto going forward? SL: It gives strength to the concept that Fix Auto started over 20 years ago. We have over 60 percent brand recognition in Quebec and the average quality of the stores is very high, in repair quality, cus-tomer service and management. Quebec is the second biggest market in the country, so it was inevitable that our competitors would try to catch up to us there. It’s a very mature market for us as a network. There are a few areas where we can still grow, but our aggressive growth will be outside of Quebec.
CRM: you assumed the role of President effective october 1, 2012, taking over from Manon Duplantie, who will now hold the position of strategic advisor to the President. what does this
“the industRy will change moRe in the
next five yeaRs than it did in the last 15.
– Steve leal
steve Leal, president of
Fix auto Canada.
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Gus Stavropoulos is the owner of Fix Auto Yorkdale in Toronto, Ont. He has been using Mitchell RepairCenterTM since 2011. He says that the power to pick and choose from different modules is one of RepairCenterTM’s greatest advantages.
“You can tailor and customize this system to your needs by adding the modules you feel will help your business,” says Stavropoulos. “It’s like a menu in a restaurant. You just pay for what you want.”
Extending the menu analogy, you can order RepairCenterTM either a la carte, choosing specific modules that will help you, or you can order from the fixed menu, choosing a package deal that comes closest to what you need, and then adding more modules from there.
If it relates to managing repairs, customer service or the collision business, there’s a RepairCenterTM module that covers it. Even the most basic version of RepairCenterTM will give you the information you need to make the most critical decisions, and it gives you the information all on one screen.
“You can monitor the company’s profitability, and keep track of labour and job costing in real time,” says Stavropoulos. “We use it to keep track of our own key performance indicators. For years our insurance partners have been compar-ing us to other shops based on their numbers. RepairCenterTM allows us to do our own compar-ison and see where we need to improve.”
Expanding RepairCenterTM with modules provides even more flexibility. There are mod-ules for part management, estimate analysis,
photo management and much more. No matter the module or how complex the job it’s designed to do is, you can depend on it being fully integrated with the rest of Re-
pairCenterTM and even beyond. An account-ing software interface is standard with most RepairCenterTM packages and is available as an option on the others.
“Once your file is balanced in RepairCenterTM, it’s just a click of a button to transfer that invoice into your accounting software,” says Stavropou-los. This helps to ensure that you know exactly how much money is moving in and out of the business on a daily basis and assists in analyzing costs. These are vital things to know for anyone with a goal of long-term profitability.
RepairCenterTM offers progressive repairers so much that it’s almost impossible to detail it all. However, Mitchell’s goal in designing it is easy to explain. Every aspect of RepairCenterTM exists to make repairers’ lives easier.
“I’ve personally had the privilege of working with a few management systems, and I can say from experience that Mitchell is very committed to us, the end users,” says Stavropoulos. “They have spent countless hours on understanding our needs and making the appropriate changes or enhancements to RepairCenterTM, and they keep progressing. I’m looking forward to the near future when in addition to RepairCenterTM and all the helpful modules, we will also have Eclaims integrated on the same screen.”
With Mitchell RepairCenterTM, your shop and your future are in your hands.
Take ConTrol
mpowered
Mitchell RepairCenter™
LABOR EFFICIENCY
Labor efficiency percentage is simply sold labor hours divided by the actual hours worked multiplied by 100 (sold hours/worked hours X 100). Labor efficiency is nearly impossible to calculate without some type of “shop clock” that allows technicians to clock in and out of jobs. Knowing your labor efficiency can help you correctly determine your shop’s capacity.
CYCLE TIME
Repair cycle time is commonly expressed as “keys- to-keys” and is one of the top two measurements used by insurance companies to grade their DRP shops. Cycle time can be measured in a variety of ways so it’s vital to understand how your DRP partners are measuring it.
NET PROMOTER SCORE (NPS)
It’s a simple answer to a simple question: “How likely (on a scale of 1-10) are your customers to recommend your shop to a family member or friend?” The actual score is calculated by taking the number of customers who answer 9 or 10 and subtracting the number of customers who answer 1 through 6. Knowing your NPS is a great baseline for measuring and understanding overall customer satisfaction and loyalty.
PROFIT PERCENTAGE BY DEPARTMENT
This is Job Costing 101, but the ability to look at your cost centers and break this data out by insurance carrier or estimator will give you huge insight into the influences affecting your profitability by department.
SHOP CAPACITY
Capacity isn’t just measured by the number of open bays or number of technicians available to do the job, but also depends on other variables—such as parts availability. If you don’t know your shop’s capacity, how can you effectively schedule vehicles?
1
2
3
45
Top Ten Numbers that Matter
As the old saying goes: If you can’t measure it—you can’t manage it. Here is a list of the top 10 numbers you should consider measuring, along with a brief definition and why we think they are important to keep tabs on.
Gus Stavropoulos, Joe Cannata (back) and Jamie Stavropoulos of Fix Auto Yorkdale. Mitchell RepairCenterTM gives them what they need to know, all on one screen.
MiTChell’s RepaiRCenTeR puTs The poweR in youR hands.
Collision repair is a complex business. Managing repairs is important,
but it is only one part of the equation. Managing customer experience
and the business itself are just as important.
if your goal is to take control of all aspects of your business, there’s
really only one solution—Mitchell RepairCenterTM. RepairCenterTM was designed
from the beginning to help you accelerate profitability and growth, and simplify
operations in your shop.
every shop is different, but Mitchell RepairCenterTM can help you, regardless if
you manage one small shop or a large chain. it’s the industry first true workspace
solution that allows you to choose the modules that fit your goals. over 30
RepairCenterTM modules allow you to pick and choose what you need to take
your shop to the next level.
mpowered
Mitchell RepairCenter™
LABOR EFFICIENCY
Labor efficiency percentage is simply sold labor hours divided by the actual hours worked multiplied by 100 (sold hours/worked hours X 100). Labor efficiency is nearly impossible to calculate without some type of “shop clock” that allows technicians to clock in and out of jobs. Knowing your labor efficiency can help you correctly determine your shop’s capacity.
CYCLE TIME
Repair cycle time is commonly expressed as “keys- to-keys” and is one of the top two measurements used by insurance companies to grade their DRP shops. Cycle time can be measured in a variety of ways so it’s vital to understand how your DRP partners are measuring it.
NET PROMOTER SCORE (NPS)
It’s a simple answer to a simple question: “How likely (on a scale of 1-10) are your customers to recommend your shop to a family member or friend?” The actual score is calculated by taking the number of customers who answer 9 or 10 and subtracting the number of customers who answer 1 through 6. Knowing your NPS is a great baseline for measuring and understanding overall customer satisfaction and loyalty.
PROFIT PERCENTAGE BY DEPARTMENT
This is Job Costing 101, but the ability to look at your cost centers and break this data out by insurance carrier or estimator will give you huge insight into the influences affecting your profitability by department.
SHOP CAPACITY
Capacity isn’t just measured by the number of open bays or number of technicians available to do the job, but also depends on other variables—such as parts availability. If you don’t know your shop’s capacity, how can you effectively schedule vehicles?
1
2
3
45
Top Ten Numbers that Matter
As the old saying goes: If you can’t measure it—you can’t manage it. Here is a list of the top 10 numbers you should consider measuring, along with a brief definition and why we think they are important to keep tabs on.
For more information on Mitchell RepairCenterTM, please visitmitchell.com
Mitchell repairCenter’s offers nearly unlimited flexibility with
Workspace modules, allowing you to tailor the industry-leading solu-tion to fit your business exactly.
february 2013 collision RepaiR 31
faCTS aND fIGureS
Facts and Figures2012
2012: YeaR in ReVieW
The trends and issues that shaped the last year. By Mike Davey
Nearly half of collision repairers are expecting an increase in business in 2013, according to the preliminary results of our 2012 Year End Survey.
The Collision Repair magazine 2012 Year End survey asked repair professionals across Canada for their views on trends in business, profitability, parts use, franchising, diversifica-tion and much more.
Type of companyExpected gross annual
revenue for 2012
National networks and multiple store operations may have increased in prominence in recent years, but our survey shows that the single location, independently owned collision repair facility is still very much alive and well. It remains the single largest group of respon-dents, at over 40 percent.
Nearly 38 per cent of repairers said that business had decreased in 2012, a higher percentage than for any other
category. However, nearly as many (35.5 percent) indicated that they believed business had increased, and more than a quarter of respondents said it had stayed the same.
Many survey respondents also left comments per-taining to individual questions. Below are some of the comments regarding increases and decreases in business in 2012. Comments are unedited except to correct spelling or typographical errors. Please note that all comments
type of company expected gross annual revenue for 2012
*these numbers reflect our survey results only and are not intended to present the overall industry.
32 collision RepaiR COLLISIONrePaIrMaG.COM
faCTS aND fIGureS
reproduced in this article are solely the opinion of the survey respondent, and inclusion here does not constitute an endorsement by Collision Repair magazine or its staff.
Gross $ went up but Net $ is down.•Up 10%. Still down from 10% from the peak.•We had a big hail storm last year so we are ex-•periencing a slowdown due to that work being finished up but collision is still going strong and even growing.Business has decreased substantially due to insurance •companies changing DRP programs and lack of loy-alty to long-term partners. Direction of work seems to go to those that offer the lowest price and has nothing to do with quality of repairs or customer service. Their concern seems to be quick and cheap. Very poor winter season. Small increase in spring and •summerSales at my shop at this point in my fiscal year is •20%!!!! We have been here for almost 70 years, and I cannot remember such a horrible time for business. Increase due to hail •No winter weather definitely a decrease•Approx 30% decrease insurance related work, about •10% increase in customer pay work
Future FocusTurning to expectations regarding 2013, collision repairers seem to be showing more optimism, with nearly half indi-cating that they believe business will increase in 2013.
Many of our readers left a comment explaining why they felt that their answer was the way to bet. Some comments are reproduced below. All comments are unedited except for spelling.
The insurance companies are filling the customers’ •heads with false information, making it harder and harder to keep customers at the shop. Opening second location•All dependent on weather •It’s not going to get any better. •We have a vibrant economy and our shop has posi-•tioned itself as one of the dominant players in our market place.My business will decrease as we are aware that there •will be other insurance companies that are going the direction Intact/Rely program and we will not partner with those companies. All changes that accompany those programs are strictly beneficial to the insurance companies and not shops. They’re killing well-run, in-dependent shops and this industry as a whole. Not seeing any signs that claims are going to •increaseWe are hoping it will stay the same. We have been for-•tunate to stay operating with a steady year. Unfortunately as long as insurers keep steering claims •sales will continue to go down. We are focusing on increasing revenues through other •avenues beside collision repair. We expect an increase with changes we have made •and expanding our shop space.
Has business increased, decreased or stayed the same since the end of 2011?
Do you expect business to increase, decrease or stay the same in 2013?
has business increased, decreased or stayed the same since the end of 2011?
Do you expect business to increase, decrease or stay the same in 2013?
*these numbers reflect our survey results only and are not intended to be presented to reflect the overall industry.
february 2013 collision RepaiR 33
faCTS aND fIGureS
Facts and Figures2012
parts use
Aftermarket parts are out in front in 2012, with over 60 per cent of repairers noting that their use of aftermarket parts has increased over the year before. When it comes down to which category is used the most, new OEM parts are in the lead.
Reader comments on the situation may help to illus-trate some of the driving factors:
Being a dealer, we are able to match jobber prices. •Also, the new CollisionLink and Bridge programs en-able us to match more parts. Really like it. The gross profit margins (45 to 50 per cent) on the af-•termarket parts is a major contributor to my bottom line. When you consider the other parts types will av-erage out to about 22 per cent gross profit (on import, domestic OEM and recycled), clearly the aftermarket is the way to go if you insist on only CAPA parts.
Of the three major parts categories, which do you use the most?
Has your use of aftermarket parts increased over the last year?Has your use of new OEM parts
increased over the last year?
Has your use of recycled OEM parts increased over the last year?
Thinking of just the answer to the above question, what is your main reason
for choosing that category?
has your use of new oeM parts increased over the last year?
has your use of recycled oeM parts increased over the last year?
thinking of just the answer to the above question, what is your main reason for choosing that category?
of the three major parts categories, which do you use the most?
has your use of aftermarket parts increased over the last year?
*these numbers reflect our survey results only and are not intended to present the overall industry.
34 collision RepaiR COLLISIONrePaIrMaG.COM
faCTS aND fIGureS
training
The culture of training is robust, with over 80 per cent of our respondents accessing some form of training in the last year. The traditional classroom is still preferred over online training, but the majority of our respondents are sheerly results driven, believing that the preferred method varies with the type of training being offered.
Suppliers and jobbers are filling a vital role in this re-gard, with a slight edge over I-CAR in total number of respondents who accessed their training in 2012.
How do you prefer to access training?
Does your facility offer services other than collision repair?
franchising and diversification
The theory behind diversifying beyond collision repair states that a business offering a more diverse range of ser-vices will find it easier to weather economic downturns and recessions. Unsurprisingly, the most common “extra” service offered by our survey respondents is auto glass. On a more personal level, many of the shop owners we’ve spoken to in the last year have indicated that they’ve ei-ther brought glass repair and replacement in-house, or intend to do so shortly. Occupying the second and third spots are mechnical service and detailing.
It’s telling that of all our survey respondents, only 15.1 per cent offered no services other than collision repair, but of those that did, over 50 per cent added these ser-vices prior to 2012. Diversification has been a trend in the collision repair industry for some time, and our re-sults indicate that this will continue at least into 2013, with many repairers planning to add services during the coming year.
Did you add any servicesin the last year?
Who provided the training? Please select all that apply.
Did you or any of your staff attend training in 2012?
Did you add any services in the last year?
Does your facility offer services other than collisionrepair?
Did you or any of your staff attend training in 2012?
how do you prefer to access training?
who provided the training? Please select all that apply.
*these numbers reflect our survey results only and are not intended to present the overall industry.
february 2013 collision RepaiR 35
faCTS aND fIGureS
Facts and Figures2012
When was the last time labour rates increased at your facility?
Have you experienced a price increasein other consumables in 2012(abrasives, adhesives, etc.)?
Have you experienced a price increasein paint materials in 2012?
supplies, equipment and expenses
The majority of shops taking part in our survey have seen a labour rate increase in the last two years. However, the posted door rates may not actually indicate the real labour rate. Some comments illustrate why:
We try and raise our “posted” rates about 1 to 2 % per •annum. But insurance compensation rates only go up every 1 to 6 years depending on the company. One company, with the discount we have to give them, are paying us what we were getting paid in 1992-93!We raised our door rate to the dismay of the insurers and •were successful for the most part, but the insured is asked to pay the difference when the rate is not adhered to.Door rates increase slightly, but then insurance companies •don’t allow certain operations, so really there is no increase. Shop rates can be set to whatever you want, but the re-•ality is insurance companies dictate what will be paid. And if you try to fight it, they will threaten to pull the job from your shop.No increases from DRP programs in 4 years. I am •raising door rate again in Jan. 2013 to compensate for the rate I am getting from our largest DRP program. The DRP insurance companies control the majority of our sales. We will be raising door rates again in 2013 to balance the books to compensate their shortfalls.
It won’t surprise many people in the collision repair in-dustry to learn that the price of paint has risen over the last year. In fact, our survey results indicate that the price of other consumables, such as adhesives and abrasives, have
also increased in the last year. That brings us to the end of our review of the trends
of 2012. Turn the page to see what the 2013 may hold for Canada’s collision repair industry. CrM
when was the last time labour rates increased at your facility?
have you experienced a price increase in paint
materials in 2012?
have you experienced a price increase in other consumables in 2012 (abrasives, adhesives, etc.)?
*these numbers reflect our survey results only and are not intended to present the overall industry.
36 collision RepaiR COLLISIONrePaIrMaG.COM
INDuSTry TreNDS
Innovation and the future of the collision industry.
By Michael Pistol
Innovation within the automotive sector has always brought major technological advances, but the pace of innovation is speeding up and the industry is on the brink of new
technological revolution that may have far-reaching implications for the traditional automotive value chain and beyond, espe-cially in the area of collision repair.
Let’s have a look at the innovations that will challenge the collision industry, im-mediately and in the longer term:
The trend towards increasing use of advanced high strength steel in favour of traditional mild steel is already well established. However, research is cur-rently underway to bring much more exotic materials to the table. Carbon fibre
Google’s driverless car is licensed to drive in Nevada, a state that has been very friendly to autonomous vehicles.
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certainly isn’t new, but it’s extremely high cost has seen use limited to race cars and the luxury sports market. That hasn’t stopped a number of automakers and other corporations from funding research into dropping the cost of production and searching for simpler forming methods. Those projects have already started paying off in some cases, so we can expect to see more and more carbon fibre appearing in mid-range vehicles.
More manufacturers are producing full aluminum vehicles, and each auto-maker has restricted who is authorized to repair these vehicles.
Aluminum is now the second most common material used in vehicle con-struction today, and currently in the North American auto market, average content has increased almost 24 per cent over the past five years.
The manufacturers’ motives for placing restrictions on who can repair their ve-hicles are simple. They want to assure the vehicle is repaired properly and that the quality and the customer repair experience are appropriately managed.
The days when a collision technician could look at the original vehicle con-struction and replicate that process in the repair are gone. We’re likely going to see more and more manufacturers starting certified collision repair programs. Under most programs, shops will likely need to be sponsored by a local dealership to even apply for the program. Assuming a shop owner can line up this sponsorship, it still needs to be determined if the shop will have enough potential volume of these ve-hicles to justify the needed investment in equipment and training.
This isn’t just a matter of aluminum construction, of course. The same type of situation also applies to alloy and other component materials. Shops can no longer rely on observing the manufac-turer’s assembly technique and replicating the procedure. More shops, in turn, must increasingly begin to rely on specific man-ufacturer collision repair information to properly complete their repairs.
We’ve seen a lot of news in recent months regarding new collision avoid-ance technology and its big brother, the
february 2013 collision RepaiR 37
INDuSTry TreNDS
fully autonomous vehicle. In addition to Google’s famous driverless car, Con-tinental and Audi also have permits to test their autonomous vehicles on Ne-vada’s highways. Both Volvo and Nissan recently showcased new, self-driving ve-hicles that maintain speed and direction devoid of any driver interaction. The cars are concepts, but could become produc-tion vehicles in coming years.
How will the insurance industry react to these vehicles, should they become a feature on our streets? Insurance is largely a matter of determining risk. It’s diffi-cult to determine the statistical risk of a completely new factor. At first, insurance companies will most likely simply insure these vehicles without regard to their self-driving capability. The human driver will be considered to be in charge at all times. In any case, there are no current plans to rollout these vehicles. That we will see them hit the streets at some point seems almost certain, but it will be a few years down the road at least.
Collision avoidance technology, on the other hand, is already becoming more widespread. While most cars in the
Canadian vehicle fleet still do not have this technology, it’s only a matter of time until it is fleet wide. The estimated time for new technology to percolate into 95 per cent of the vehicle fleet is about 20 years.
Few people would disagree that this will mean a lower number of collisions. How-ever, it’s important to remember how most collision avoidance systems work: the car’s sensors detect an imminent collision and sig-nals to the driver to do something about it. In some cases at least, this may not prevent the accident entirely, but simply reduce its se-verity. We will definitely see fewer collisions, but we may see fewer write-offs as well.
Going forward, maintaining customer loyalty will be one of the most important things you can do to ensure long-term vi-ability. Expanding the offering at your shop might be indicated as well. The more services you offer, the more reasons a cus-tomer has to keep coming back. The more they come back for rust-proofing, detailing, etc., the more likely they will be to turn to you when they experience a collision.
Customer loyalty is complex, because it is based on an entire relationship with a business, not a specific transaction. It’s al-
most impossible to have loyal customers without delivering satisfaction, but satis-fied customers are not necessarily loyal customers. Loyalty is a matter of making sure your customers know that you are the best value around, and make sure they re-member that “best value” does not always mean the cheapest. CrM
the growth ofnational and regionalnetworks and the rise of multi-storeoperators has captured a lot of attention in the last year, but the single location, independent collision shop is still in the majority, according to the results of our 2012 reader survey.
type of company
38 collision RepaiR COLLISIONrePaIrMaG.COM
OeM SPOTLIGHT
bMw’s Collision Vision
There are a number of signs pointing to an increase in the number of OEM certified col-lision repair programs in the next few years. Increasing ve-
hicle complexity is one aspect, but there is also a natural desire on the part of the OEMs to encourage brand loyalty in every aspect of automobile maintenance and care.
BMW has often been at the forefront of automotive technology, and there’s no denying that the company’s brand is very strong, in terms of both recognition and customer loyalty. Technological innova-tion comes at a price. For BMW, it’s meant that from a relatively early time, the com-pany has had to keep a very close eye on how its vehicles are repaired.
These repairs aren’t just a matter of technical skill. The right equipment is also needed. Finding the right equip-ment isn’t a job that BWM takes lightly. I recently visited the headquarters of BMW Group Canada to meet with Mi-chel Matte and Chris Castagna to discuss the rigorous process that both equip-ment and the shops themselves must undergo before becoming part of BMW’s repair program.
The BMW certified collision repair program began in the late ‘80s, with the introduction of “GRAV” shops. GRAV is a German acronym. A loose translation would be “weight reduced aluminum front car” referring to the aluminum front end first introduced in the BMW 5 Series and the BMW 6.
“It really goes back to the introduc-tion of structural aluminum,” say Matte. “Before that, the program was more rudimentary, dealing with unusual fea-tures of a specific vehicle, such as the Z8,
which was the first vehicle that needed all laser welds.”
Structural aluminum repairs require special equipment, such as fixture benches and dedicated, sealed rooms, but that only tells
part of the story. “It’s not just the issue of cross-con-
tamination from particles of aluminum,” says Castagna. “Aluminum structure just doesn’t behave the same way that steel does. You can’t pull it, you can’t weld it.”
One statistic makes the need for proper training and equipment frighteningly clear. BMW has examined a number of cases where repairs were done by a shop that didn’t have the right training and
Car-O-Liner’s Vision X3 passes one of the industry’s most demanding tests.
Car-o-Liner’s Vision X3 has been named by BmW as the mandatory electronic 3d measuring system for repairs to its vehicles.
By Mike Davey
february 2013 collision RepaiR 39
OeM SPOTLIGHT
equipment, as mandated by BMW. The company found the repairs were done im-properly in 100 per cent of cases.
“BMWs have the reputation of being very safe cars” says Matte. “There are a lot of different systems involved in passenger safety, and we want them to perform 100 per cent of the time.”
Essentially, any collision repair facility on the program has to be able to bring the car back to factor specs.
“Any collision repair facility can make the car look the same, but it’s what under the skin that counts,” says Castagna.
Most of the collision repair facili-ties certified to repair BMWs are dealer owned shops. However, from the early years, BMW has allowed members of their dealer network to sponsor indepen-dent collision repair centres.
“The reality is that our customers want to have their vehicles repaired in the same market where they purchased it. Part-nering allows our dealers that don’t have collision centres of their own to still offer those services,” says Matte.
A dealer sponsor isn’t a requirement for joining BMW’s certified collision program. Rather, it’s a requirement to even apply, and it’s only the first hurdle. The selection process is thorough and deep, examining anything and every-thing to do with the facility’s ability to
return the vehicles to specifications de-termined by BMW.
“There has to be an established rela-tionship,” says Matte. “After the dealer sponsors the shop, the onus is on us to find out if they’re good.”
BMW has high expectations, and not just in the area of equipment and training. The company wants to know that the shops they partner with are long-term, viable businesses.
“The shops we partner with are usu-ally premium facilities already, but one of the things we ask is, ‘Do they have a vision to move the business forward?’” says Castagna. It’s a matter of attitude.
A shop that has reached the pinnacle of success and efficiency, but is nevertheless still striving to grow and progress, has the right attitude.
Equipment also plays a major role in the repair process. BMW mandates the use of not just certain types of equipment for cer-tain procedures, but certain brands. These are requirements, not recommendations. Making sure all of the correct equipment is in place can be a major investment for shops, but it’s the gear necessary to get the job done right.
BMW’s equipment selection process is painstaking. A specific department at BMW’s headquarters in Germany exam-ines and tests all prospective equipment. The testing department works directly with the equipment’s design engineers, en-suring every aspect is thoroughly vetted.
BMW recently added a new tool to the mandatory list of equipment, requiring that all BMW Certified Collision Repair Network centres utilize an electronic 3D measuring system. After researching all of the available 3D measuring systems, BMW selected Car-O-Liner’s Car-O-Tronic Vision X3. That the equipment must be able to repair BMWs is obvious, but only part of the story. There are other criteria that must be met before BMW will select the equipment.
“We also look at which system is more adaptable to the shop environment,” says Matte. “It has to be able to work on non-BMWs as well. We understand that new equipment is a major investment for a
collision centre, so our selection process works to find the most flexible option.”
The Car-O-Tronic Vision X3 is a true 3D measuring system with a number of special features, including upper body measuring on all vehicles, including full frames, light trucks and SUVs, surface damage diagnosis and multimedia sup-port for the company’s new modular anchoring, side support and universal parts fixturing system.
Doug Bortz is the National Sales Man-ager for Car-O-Liner. He notes that the fact that the equipment was selected by BMW speaks to its quality.
“BMW is often at the forefront of tech-nological development, and we share the same attitude,” says Bortz. “We’re very pleased that BMW has selected the Vision X3 for its certified collision program, as we believe it to be the most advanced system of its kind on the market today.”
Sam Piercey is the co-owner of Budds’ Collision Repair Services in Oakville, Ont., and a columnist with Collision Repair maga-zine. His facility is affiliated with a dealership offering numerous luxury car brands. His facility has had a Vision X3 in place almost since the day they went on the market.
“It’s probably one of the most accurate and sophisticated, up-to-date, easy-to-use electronic measuring systems there is,” says Piercey. “It’s got a full colour screen,
and it offers before and after dimensions. You can get side measurements as well as front and rear, something some other ma-chines have difficulty doing.”
Piercey says the Vision X3 is, in his ex-perience, extremely accurate and features a relatively easy set-up.
“It’s expensive, but it’s probably one of the longest lasting and most up-to-date systems available today,” says Piercey. “Car-O-Liner does its homework.” CrM
these RepaiRs aRen’t just a matteR of technical
skill. the Right equipment is also needed.
Chris Castagna. Michel Matte.
40 collision RepaiR COLLISIONrePaIrMaG.COM
LeGeNDS Of THe INDuSTry
Andy Trudel has a lot of ex-perience in the collision repair business. Having o w n e d a n d o p e r a t e d his shop since the early
1970s, he’s witnessed the evolution of both vehicles and the equipment de-signed to fix them.
But as a young entrepreneur who ran a grocery store in the hamlet of Albertville, Sask, and prior to his initial venture into the business - which began in a converted garage with minimal lighting, haphazard air circulation and an oil stove for heat - he never imagined himself dedicating his life to repairing cars, nor building a state-of-the-art repair facility.
“I had a one ton truck to haul groceries with,” recounts Trudel. “One day I rolled it on its side. Of course I didn’t have any money to get it fixed, so I pulled it into my garage, bought myself a spray gun and fixed it. I didn’t have any experience, but I thought, ‘Why not?’”
That impromptu decision eventually led Trudel to a life in collision repair –
Andy Trudel turned a one-time, self-repair job into a thriving business. By Hayden Kenez
a career path that he had never contemplated before his truck accident.
His neighbours were impressed with the work he’d done, and they soon began to petition him to fix their vehicles. He quickly turned his focus to the collision repair industry, and soon his flourishing business warranted the opening of a larger, more professional facility.
In 1975, Trudel sold the grocery store that had been the focus of his previous life, signed his brother John into the busi-ness as a partner and purchased a building across the street from his original shop. The new facility could accommodate four vehicles at any given time, and the added business allowed the brothers to focus on
more lucrative insurance work. For nearly two decades Trudel’s
shop thrived in Albertville. The busi-ness was well-known in town and the surrounding area, and in 1992 Trudel was invited to teach a course designed to introduce students to the automo-tive repair sector. Trudel’s course ran for four months and was held for two consecutive years, and attracted twelve students – several of whom Trudel invited to work for his business fol-lowing completion of the course.
In 1993, Trudel’s business again outgrew its lodgings, and he pur-chased a more fitting facility in the larger city of Prince Albert, Sask.
In 1997, Trudel’s son Ivan joined the business full time and started his ap-prenticeship. Trudel ultimately relocated his entire business to this new facility, and has been here ever since.
“Forty years later, we’re still giving ‘er,” chuckles Trudel.
As the years progressed, and au-t om ot i ve m anu f a c tu re r s b e g an t o
The fully modern home of Trudel auto body.
CHANCE OF A LIFETIME andy Trudel working on one of his earliest jobs.
Trudel’s first location.
february 2013 collision RepaiR 41
LeGeNDS Of THe INDuSTry
incorporate newer, mless intuit ive technology and safety features into cars, Trudel’s has constantly adapted to changes in the industry. To keep up with innovations, Trudel has imple-mented a more focused and intensive mandate to his business.
“Originally, I did everything,” says Trudel. “Now I have a manager, body techs, painters, preppers and an admin-istrative assistant to do the paperwork, a foreman to run the back of the shop. These guys have to know what they’re doing.”
He stresses that the intricate nature of today’s cars requires specialized workers, and longer repair processes. Auto man-ufacturers eager to distinguish their aesthetics from those of their competi-tors have made most features unique to each specific model, requiring more work locating replacements and, as a re-sult, more expensive parts.
“It’s always a different process,” explains Trudel. “Autos are complex now, with all the computers, sensors and airbags.”
Aside from the increased costs associ-ated with newer technologies, collision
repairers face a lack of interest in the business from apprentices and workers new to the industry, according to Trudel. He cites lower wages, when compared to those of other trades, and competition from the lucrative oil sands develop-ment, as dissuading young people from pursuing a career in collision repair.
“A kid coming out of school will say, ‘I need to make a living, I like body work, but it doesn’t pay enough’,” says Trudel.
“We’re not attracting enough kids and that’s a problem.”
Of course, like any other career path, money is not the only deciding factor, Trudel acknowledges.
“If you enjoy what you do its always positive. I still enjoy bringing in some-thing that’s a mess, and returning it in pristine condition to the customer who has a smile on his face,” says Trudel. “That’s worth a million bucks to me.” CrM
The current staff of Trudel auto body.
february 2013 collision RepaiR 43
TeCH TaLK
Ca r b o n f i b r e i s r a p i d l y changing the face of the automotive industry. The once rare, exotic material is quickly finding its way into
mass-produced automobiles, blowing its top competitors - steel and aluminum - out of the water in terms of strength, durability and weight savings. Carbon fibre has been used in the automotive world for a long time, primarily in the luxury and sports segments. However, new and upcoming advances in carbon fibre manufacturing show that this ma-terial may soon be making its way into more mid-range vehicles.
For automotive makers appealing to the current market trends of reducing weight and improving efficiency, the
move towards carbon fibre makes sense. The material outperforms competitors in every department, offering the OEM an unequivocally superior material to work with. Carbon fibre has long been associ-ated with performance, and has enjoyed years thriving in Formula One racing - it’s a dynamic material that elicits images of superiority.
“The classic argument is that a carbon fibre structure is going to be a lot lighter for the same stiffness, when compared to a different material,” says University of British Columbia professor Anoush Poursartip, who directs the school’s Com-posites Group. “This material does really well in all counts.”
Initially reserved for high-end auto-motives, and associated with the speed,
performance and efficiency of racing cars, the material is becoming omnipresent in today’s mass-produced automotive world. Companies such as Audi and Ford are implementing more carbon fibre parts into their automotive lines, in a bid to capitalize on two of trends in today’s au-tomotive market: environmental impact and efficiency. BMW has announced the development of its “i-series,” an entire line of fully carbon fibre cars (which also offers an electric engine to appeal to envi-ronmentally-conscious drivers).
While consumers will undoubtedly be pleased with the savings associated with a lighter, more nimble vehicle, and have re-sponded well to the material, there is a far more pressing concern for manufacturers. They’re coping with the increasingly strin-
individual carbon fibre strands are thinnerthan a human hair but, when embedded in an appropriate material, offer higher resiliency than steel.
New advances may make carbon fibre cheaper. Are you ready?By Hayden Kenez
44 collision RepaiR COLLISIONrePaIrMaG.COM
TeCH TaLK
gent environmental and safety regulations currently being implemented across Eu-rope and North America. Pressure from governments to reduce weight and de-mands from consumers for a car that lasts longer are at the forefront of automakers’ minds, as they cut weight and build more resilient components to appease all those with a vested interest in seeing the pro-duction of better automobiles.
Frank Gobbato of Formula One Collision in Windsor, Ont., has witnessed a surge in cars with carbon fibre parts arriving at his shop. He attributes this to automakers re-alizing the potential of this advantageous material in securing their future in an in-creasingly fuel-efficient world.
“In a time when the price of fuel is sky-rocketing, would it not be wise for a vehicle manufacturer to use a material that is lighter, stronger, more durable, ridged and visually appealing to consumers?” says Gobatto.
For automotive manufacturers, imple-menting carbon fibre into vehicles appears to be an easy decision. A lighter, more ef-ficient vehicle that boasts the prestige of an exotic material is bound to sit well with consumers. However, there is one major, and as of yet unavoidable, drawback to
developing carbon fibre parts: price. The material is one of the most expensive to produce. Along with surpassing rivals in resilience and longevity, it also transcends its counterparts in cost. Producing carbon fibre is a lengthy, extensive process, and one that requires heavy initial investment from manufacturers.
In the fall of 2011, BMW announced the opening of a carbon fibre development fa-cility in Moses Lake, Wash. The luxury car behemoth coupled with SGL Automotive Carbon Fibers to produce carbon fibre and ultimately reduce the costs associated with its use in vehicles.
“The BMW groups is pioneering new frontiers in automotive production,” BMW chairman Norbert Reithofer said during the ceremonial opening of the Moses Lake facility. “Using carbon fibre on this scale has never been attempted before.”
The announcement of the new facility’s announcement will no doubt help cement BMW’s image as a leading-edge manufac-turer, but the company will still have to bear the high costs and lengthy process that carbon fibre demands. That is, until they can develop a quicker, more efficient method of production.
Carbon fibre is a colloquial term for “Carbon Fibre Reinforced Plastics,” or CFRP, a tightly woven bond of carbon fibre cloth coupled with a resin. While the process varies depending on the specific manufacturer, the fundamentals remain the same.
Simply put, CFRP is produced through the infusion of carbon fibre cloth with a resin, which is then exposed to intense heat in varying degrees, cleansed of ex-cess coagulant in a bath, oxidized in yet another oven and carbonized in an oxy-gen-free chamber. Finally, it undergoes surface treatment and sizing - the critical component in ensuring performance, in which the material is coated for protection during shipping and handling.
On top of the extensive production process, the material is still relatively new in production cars, and thus comes with a hefty price tag. While it’s been used in Formula One cars for decades, and in production sports cars for just as long, it remains an anomaly in mass-produced, affordable vehicles. Conversely, carbon fibre has been the norm in the aerospace industry since the 1980s, despite initial safety concerns. So why has carbon fibre taken off in airplanes, but failed to reso-nate with automotive makers?
High costs, hesitancy to invest in new technology and safety concerns explain much of automotive makers’ trepidation, according to Professor Poursartip. Engi-neers working with automakers must rule out the potential for any structural failure before approving new components. This can take years. “Engineering is by nature a very conservative science. You do a few laps, and scrutinize it and always ask if there any ‘gotchas’,” says Poursartip.
A lack of confidence in new technologies is inherent in the innovation of trans-port, according to Poursartip. Carbon fibre in aerospace engineering dates back to the 1960s, and took decades to gain the confidence of engineers and airplane manufacturers. Like many new technolo-gies, carbon fibre got its start in military planes, with commercial airplane makers soon recognizing its potential. Despite manufacturers’ cognizance, carbon fibre endured decades of trial and error, and remained in the shadows into the 1980s, only appearing sporadically as a panel on the fuselage or tail of a plane. During the economic downturn of the early 1990s, commercial airlines began looking at
The bMW i3 Concept Coupe. bMW plans to manufacture the passenger cell from CfrP.
february 2013 collision RepaiR 45
TeCH TaLK
fuel efficiency to drive down costs. Thus, lightweight and durable carbon fibre fi-nally made its debut. Today, Boeing and Airbus produce airplanes comprised of 70 per cent carbon fibre.
The place that carbon fibre held during the 1980s in the aerospace industry is similar to the one it currently holds in the automotive industry. It’s revered by engi-neers, automakers and the general public alike, but economic and safety concerns have impeded its explosion onto the mass market scene, and meant that we are only now seeing its introduction into afford-able, everyday cars. However, Poursartip expects carbon fibre to be an enduring trend, one that will soon become ubiqui-tous in the automotive world.
“It just takes a while for a new technology to take off because people are conserva-tive,” says Poursartip. “Everyone has to relearn how to deal with the materials.”
While many repairers might be unac-customed to working with carbon fibre, a niche in the market exists for shops willing to adapt to the idiosyncrasies of the new material. Collision repair shops that cater to high-end, luxury vehicles have been working with carbon fibre for years, typically focusing on sourcing new parts rather than repairing them.
Sean Wallace of Collision Autohaus in Pickering, Ont., often sees BMW M3 and M5 models arrive at his shop with damaged carbon fibre panels. Protocol at Collision Autohaus warrants repairs for carbon fibre parts with cosmetic damage, but complete
replacement for any that have sustained structural damage.
“Most of the stuff we’re doing now with carbon fibre is mostly replace it with new or used aftermarket parts,” explains Wal-lace. “We repair scratches, that’s about it. If there are any cracks we replace it.”
Gobbato says that his shop subscribes to a similar protocol. In some cases, however, a customer will request repair of a struc-turally-damaged piece of carbon fibre. One customer urged Gobbato and his team to make an attempt at repairing his Ferrari Enzo’s front bumper, as an aftermarket part cost roughly $33,000.
“We contacted a company in the U.S. that had experience with repairing struc-tural carbon fibre parts. We sent pictures of the damaged parts and they sent us back a quote for making a partial mold for the damaged portion of the cover and then repairing it,” says Gobbato. “Upon seeing the opportunity, we talked it over with the client and he agreed to let us do the structural repairs.”
As carbon fibre becomes increasingly prominent in mass-produced vehicles, and companies begin to warm to the idea of investing in CFRP production, repairers will find themselves faced with adapting to new technologies, and subsequently, new methods of repair and replacement. Shops that cater to luxury cars have dealt with carbon fibre for years. But collision repairers that deal primarily with economy and mid-range vehicles have yet to face the full brunt of carbon fibre. CrM
Barriers to entry
Bmw isn’t the only global
automaker investing in carbon
fibre research. the material
has obvious benefits from an
automotive design standpoint,
and the company that can
overcome its drawbacks would
have a competitive edge.
for example, ford has partnered
with specialists from the institute
of automotive engineering
at rwtH aachen University,
Henkel, evonik, institute of
Plastics Processing, Composite
impulse and toho tenax on the
Hightech. nrw research project.
funded by the german state
of north rhine-westphalia,
the project began in 2010 and,
despite being set to continue
until september 2013, has
already made significant
progress towards its targets of:
developing a cost effective •method to manufacture carbon fibre composites for body panel applications that can be incorporated into existing vehicle production processessignificantly reducing •individual component production timesreducing the amount of •finishing work required to acceptable standardsmeeting requirements •for paintingat least 50 per cent reduction •in component weight
The bMW i8 will also feature a carbon fibre body. both designs are slated for production in 2013.
46 collision RepaiR COLLISIONrePaIrMaG.COM
PrOfIT bOOSTerS
The road to
PDR is pavedwith profitability.
By Mike Davey
A serious hail storm can be a disaster, causing serious damage and in some cases even endangering lives. The hail storm that slammed into
southern Alberta on July 12, 2010 was the worst storm on record, according to the Insurance Bureau of Canada. It resulted in more damage than any other storm in Canadian history, causing approximately $400 million in property damage.
Hail stones can hit with tremendous ve-locity, as determined by the diameter of the stone and a number of other factors. Every-thing else being equal, a hail stone 1 cm in diameter will hit with an acceleration of about 32 km/h. Larger stones tend to be rarer, and that’s a good thing for both people and prop-erty. A hail stone 8 cm in diameter will be travelling over 175 km/h when it strikes. To put it in context, that’s about the same speed as a home run ball leaving the bat. It’s easy to see just how much damage hail can do.
However, there are specialists who help to mitigate some of the damage, and increase profitability for local col-lision repair facilities at the same time. They’re Canada’s paintless dent repair road warriors, and they may be coming soon to a town near you.
“Hailstorms are most common from May to July, but they do occur at other times of year,” says Kelly Heathwood of Precision Dent Repair/Hail Connection. “They happen most often in the west and in southwestern Ontario. The Calgary area gets as many as ten hailstorms a year.”
The hail portion of a storm, known as the hailfall, usually only lasts from six to 10 minutes. Repairing the damage to cars can take weeks. A hail damaged car will often have dozens of dents, ranging in size from a dime to as big as a toonie, depending on
the size of the hailstones. Repairing all of those dents using traditional techniques is certainly possible, but it’s a very expen-sive proposition. That may appeal to some collision repairers, but both motorists and insurers aren’t as thrilled.
Partnering with a paintless dent re-pair specialist offers a solution. There are tangible benefits, to be sure, but there’s an-other side to this as well.
“The shop gets the tangible profits from leasing us the space, but they also get a chance to capture customers for life,” says Heathwood. “What the customer will remember is that their car was repaired quickly, professionally and at a relatively low cost, and they will remember where they got the work done. It’s advertising you can’t buy at any price.”
“Right off the bat, there’s the mon-etary benefit,” says Heathwood. “The upcharge from the insurance company is usually about 20 per cent over what we charge. But there’s also the value add for customers, both existing and new. Recommending PDR can result in either keeping a customer or creating a long-term customer.”
That customer care aspect shouldn’t be ignored when considering PDR. Offering
a technician from Precision Dent repair fixes a ding in the front right quarter panel. although it is often heard of in the context of hail damage, PDr techniques can be used to repair almost any small dents that do not require refinishing.
PDR, especially for hail damage, gives you one more chance at customer interac-tion. PDR experts can help make sure that customer’s cars are repaired quickly, profes-sionally and at a relatively low cost.
Consider the situation when a shop tries to deal with lots of hail damaged vehicles on its own. No matter how well equipped or large the shop is, chances are the above situation has been turned upside down.
“The shops we’ve worked with have gotten bogged down trying to do the cars on their own,” says Heathwood. “There is often so much work that they simply can’t get it all done in the time their customers expect. We’re specialists, so we can get it done faster, better and cheaper.”
Heathwood notes that there are advan-tages for the PDR company as well.
“The benefit is def initely mutual. We’re not able to repair certain types of damage. PDR won’t work if the paint is cracked or if the damage is in certain lo-cations. Partnering with collision repair facilities means providing their cus-tomers with complete repairs in as short a time frame as possible.”
Typically, a PDR contractor will work inside the facility they’ve partnered with. The company will rent tents and perform the work there in some cases, depending on weather, available space in the shop and other factors.
Canadian Hail Repair also offers pro-grams where they partner with local collision repair facilities. To date the com-pany has partnered with over 100 collision repair facilities across Canada and over-seas. Bing Wong is the Managing Director of Canadian Hail Repair. He says shops must keep several things in mind when partnering with a PDR provider.
“Check their status with your top in-surance partners so you’re not in conflict with their preferred vendors,” says Wong.
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some typical hail stones. Hail stones can be smaller than a pea to as large as a grapefruit in some cases.
“Choose hail repairers who can manage more of the appraisal, check-in and sup-plemental process. Otherwise the shop will end up doing more of the work on each file and it will slow everything down. Avoid the guys who just set up their busi-ness for a particular storm. They’ll be gone as soon as the next storm hits. The legitimate businesses will still be around to help you after the initial rush. CrM
48 collision RepaiR COLLISIONrePaIrMaG.COM
MaNaGeMeNT
In my many years of business, from time to time it has been necessary to discharge an employee. I found it difficult the first time and equally hard the last. With some you are sub-
jected to the cries of anguish and the threat of having to rot in hell. With others, it’s a draw. Do you fire them or do they quit? Except for just cause it is always difficult to terminate an employee. Because of the potential for litigation these situations are made still more onerous. If not handled with discretion it can become quite costly to defend a lawsuit. This could also apply to “constructive dismissal”, which is where by creating an oppressive working environ-ment you have forced an employee to leave. Oversights made before, during and after
the exit interview can significantly affect all involved, including remaining employees.
Minimizing the need to terminate
Termination always poses the question: Should this person have been hired in the first place? Did we make a mistake in the hiring process? Should this person have accepted employment here? Did he get adequate post-employment training and supervision? Was this person treated un-fairly, picked-on or intimidated by other employees? Could it be your shop’s fault?
before TerminatingDischarging an employee should never be a shoot-from-the-hip reaction to a
By Lloyd Manning
A Tough CallFiring a disgruntled employee can have serious implications for your business. Are you prepared?
specific situation. It should be a well thought out, albeit timely process; don’t delay it unnecessari ly. When oper-ating a real estate and business appraisal practice an employee appraiser struggled with appraisals and as a result, I struggled with him for around six months. I even-tually terminated him with the suggestion that he try a different field. Had this chap been discharged much earlier I would have done both of us a favor. Here was a situa-tion where there was no way to correct his poor performance. He had the desire to be an appraiser but lacked the ability. When faced with an incompetent employee, you must satisfy yourself that you have taken all steps to ensure that terminating them is the correct action and doing so is best for all involved.
Doing the deedOnce having concluded that there is no al-ternative, take a few days to plan the exit interview so that it creates minimum dis-tress for both of you. Be certain to provide the departing employee with a detailed ex-planation of why you are taking this action. Be clear about the reasons. Avoid personal, degrading or vague statements or say any-thing that might suggest that the situation is reversible. When planning your explana-tion, consider the possibility of an irrational, negative or combative reaction and per-haps a tear stained appeal. When you’ve concluded upon a fair speech, don’t pro-crastinate: do it now. Not tomorrow or next week - now! Never allow an employee a few days or weeks to get his things in order. This only permits this person to do nothing to further your business but sufficient time to tell others what a dork you are.
Wrongful dismissalToday’s labour laws appear to be structured in favor of the employee. One only has to read the multitude of advertisements by law firms to see that none are for the benefit of the employers. However, this does not limit your right to discharge an employee for a good reason (including simple dissat-isfaction with this person’s performance). Ensure that the discharge is not prejudi-cial. You must make doubly certain that your action could not be classified as wrongful dismissal. This would be where the termination breaches one or more clauses of an employment contract, a union agreement or a provincial statute. This would include discrimination on the basis of race, sex, religion, age, nationality
february 2013 collision RepaiR 49
MaNaGeMeNT
Lloyd manning is a semi-retired business writer. his newest book: Winning With Commercial Real estate – the ins and outs of making money in investment properties is available online from booklocker.com or indigo-Chapters. he can be reached at [email protected].
or sexual orientation. You cannot fire an employee who filed a discrimination claim, refused to commit an illegal act, partici-pated in union organizing or in other cases of statutory rights.
However, the law is not unfair. It provides the employer the opportu-nity to prove that the dismissal was not wrongful or prejudicial. Still, be careful, You may not be gui lty of wrongful dismissal, but the cost of proving your in-nocence can be exorbitant. If you get sued never present in court any notes that could be construed as having even the slightest hint of prejudice. Some years ago when defending a major project foreclosure, opposing counsel snatched my sheath of notes and used some of the information therein against me.
firing for just causeJust cause means that the employer has a valid reason to fire the employee. Just cause includes harassment of other staff, inability to perform his duties satisfacto-rily, theft, using drugs or drinking on the job, ignoring workplace rules, creating unsafe working conditions for others, lying, refusing to undertake certain tasks, bel-ligerency, uncooperative with coworkers, does not have the qualifications that they claimed to have when being hired and so forth. In union shops the union agreement sets out when you can and cannot fire an employee and for what causes.
after the terminationIn some instances some remaining em-ployees may think you have acted too harshly and prematurely. Telling them it isn’t their concern or something of this sort may not cut it. You must gauge how much expla-nation is required and how much you are prepared to give. At other times they will wonder what took you so long. There is no definite rule as to how to deal with these situ-ations. Play it by year and hope for the best.
So far as I could establish there are no provincial or federal laws that govern what you can or cannot say to a prospec-tive employer about the now-departed soul. Although not legal ly required you may wish to provide a valid reason for the termination. Because of con-cern about being liable for defamation of character many employers will pro-vide only the date of the firing and the position this person held in your company. That’s all. How much information to pro-vide and what to say is your call.
The bottom lineFiring an employee, particularly one who has been in your employ for some time, is al-ways stressful for both of you. Because of the possibility of the situation getting out of hand be certain that you go about it care-fully, methodically and with forethought. Know and understand the protection given to employees by the laws of your prov-ince. You could be sued for a tort action, wrongful dismissal or prejudice including punitive damage for pain, suffering and
anything else that comes to some high price lawyer’s mind. You can discharge an unsatisfactory employee, but rushing the matter can easily backfire. CrM
Battery Operated Spot Welder
PR-112Plasma Cutter
HSW-200 Staple Welder
NP-3 Plastic Welder
SP-5SMART MIG
Aluminium welding station
Plastic Repair
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Smart spot welder, featuring Auto Weld. Measures resistance and thickness, and then welds automatically.
Nitrogen Plastic Welding System.Welds most plastics. Digital control.
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3 MIGs in one. Aluminum-Silicon Bronze- Steel switches between
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No 3-Phase power needed
february 2013 collision RepaiR 51
PrOfILe
CompletelyFor brothers Rick and Daryl Francouer, repairing cars and making them better go hand in hand.By Mark Kimmich
CarsWe’re not a normal col-
lision repair centre.”That’s how Rick
Francouer sums up his thoughts on the
burgeoning empire that he and his brother Daryl have constructed. While his sum-mary is an understatement, it is certainly true that there is not much that’s ordinary about CARSTAR 360.
Located in Abbotsford, B.C. and opened only two years ago, their CARSTAR was incorporated into the brothers’ other business, 360 Fabrication, a large and re-nowned custom car facility. While they didn’t always plan on getting into the collision repair business, it is definitely something that, along with a love of cars, runs in the family.
“Dad worked at a body shop in Port Alberni on Vancouver Island,” says Rick Francouer. “I started working there when I was thirteen. I used to have to run two miles to work after school.”
Rick stayed in the collision repair in-dustr y and then later moved to the customization industry while Daryl pur-sued his passion: aircraft/aviation. Daryl ultimately ended up with an aerospace engineering degree. Eventually though, the pair ended up working together for a local customization shop.
As Rick explains, “Daryl and I have this huge creative side and there was one par-ticular customer that was begging and pleading for us to go out on our own.” So, in 2006, the brothers took the leap and opened up 360 Fabrication in a 3,000 sq. ft. facility approximately two blocks from their current location.
“In the beginning, we weren’t even sure if we were going to have a paint shop, believe it or not,” Rick chuckles as he de-scribes the anxiety of those early days. “That plan changed pretty quickly. The first guy that we hired was a painter.”
As it turned out, they were going to need more than just a painter. Signs of success
“
rick and Daryl francouer.
52 collision RepaiR COLLISIONrePaIrMaG.COM
PrOfILe
started to appear regularly in the form of cars being dropped off in their shop ready to be customized.
“We were in the middle of building a crazy truck when we opened. People wanted to come in and take a look,” says Rick. “Soon friends of friends started just dropping their cars off.”
For the next few years, business grew, their name recognition improved and things were going well. The brothers had expanded already by opening up an uphol-stery division and an audio division.
In a few short years, their business was booming to the point that they were, by volume, one of the largest shops in the country. They also employed 40 staff who Rick says “enabled us to do high quality cars very quickly. We had hockey players, rockstars, and presidents of banks bringing their cars to us.”
It didn’t take long for history to repeat though. Approximately four years after opening 360 Fabrication, it was a cus-
tomer recommendation that again took the brothers’ business in a new direction.
“We had a big customer who kept asking us to enter the collision repair busi-ness. My first inclination was that I didn’t want to do it. We were busy enough and things were going well.” Rick credits his brother with pushing him to get into the business.
“It was Daryl who really pushed it. He said that the collision shop would be a revenue stream that we shouldn’t ignore.”
The brothers understood the col-lision repair business from their father’s time at the collision shop when they were kids. According to Rick, they also knew that times had changed. “We knew that the days of the mom and pop shops were coming to an end. We felt that we had to join a large group. For us, CARSTAR was our first and only choice.”
The timing also worked out. In 2010, they incorporated the new CARSTAR
franchise into their new building, pur-chased around the same t ime. This allowed them to fully integrate the two businesses. With the exception of sepa-rate paint divisions, the two shops share personnel depending on need, and that diversification has made them a force.
“The two shops definitely work hand in hand,” says Rick. “The neat thing is that we’ve made ourselves hard to compete against we are so diversified. Now we do work for five insurance companies and we expect to add a few more in the near fu-ture.” Rick has to chuckle a bit when he adds “we build a lot of cars for guys who own body shops too.”
Rick says that their success in custom cars was always in large part to their knowledge of collision repair. “We apply all of the rules of the collision repair business to building custom cars,” says Rick. “We build better cars and we build them faster.”
And there are other advantages . CARSTAR 360 is often given the job of re-pairing badly damaged custom or rare cars. They have the ability to build parts that they can’t order and they have obvious experi-ence dealing with custom cars generally.
True to form though, the brothers aren’t done improving or expanding.
With plans to further expand their building to a 50,000 sq. ft. facility and to grow their workforce to 90 within the next four years, it’s clear that the brothers think that they can do more. Until then though, the volume keeps increasing to the point that they are going to be running seven days a week starting in October.
Says Rick, “This is a multi-billion dollar a year business. There is no ceiling. We are far from done.”
It’s true, they aren’t a normal collision repair centre.
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This issue’s Canadian Towing & Recovery page features a guest column by Dale Finch, Executive Director of the Western Canada Automotive Business Association (WCABA), a recently formed association focused on au-tomotive issues in Western Canada.
I have been asked many times why a new towing association was formed. Members of the towing and recovery industry in b.C. and alberta are very concerned about the direction of the industry and the lack of
representation with government insurance and the Impound Lot Operators program in b.C. This led to the formation of the Western Canada automotive business association (WCaba), as it strives to be the voice of the automotive sector in Western Canada.
The resource-based economy in Western Canada is very strong right now. The auto-motive sector is under pressure to maintain and attract new workers, while trying to compete against remuneration in the re-source based sector. We all understand the pressure tow companies are under to retain and attract quality employees.
In settling an action in alberta, ICbC set-tled on a “go forward agreement” with a tow company that operates in both provinces, for roughly twice what the b.C. rate schedule is. all the while, a senior manager at ICbC was pushing an agenda, which lead many to believe ICbC may tender a request for Proposal (rfP) for single supplier at least in the metro area. an ICbC tender had already wiped out a 27 location rental company in a previous tender, so there was much concern about the corporations direction.
This is dur ing the same time per iod
that ICbC filed for a “federal Competition Opinion” on negotiating with stakeholder associations, alleging a criminal conspiracy for those involved in negotiating on behalf of the association. remember, ICbC is a crown monopoly. That’s the government’s description, not ours. So far the federal government is really having a hard time understanding this position. When the fed-eral government revised the act, they have stated they didn’t set out to disturb stake-holder relations in Canada. The sad part of all this, is it causes reflection in other gov-ernment insurance companies. Thankfully the same radical position doesn’t seem to have caught on in other western provinces. What tow company could take this one on, in the courts on their own?
also in b.C., WCaba has been working with the Office of the Superintendent of Motor Vehicles and the Justice branch regarding the rates for the Impound Lot Operators (ILO) program. unfortunately, ICbC going to the competition bureau really spooked the gov-ernment regarding negotiating with industry. before, the government reviewed industries numbers and then forwarded them onto Treasury board. This is on a program where the “Offender” pays the bill. Not the taxpayer at all. WCaba has written a report and will be asking for further meetings shortly.
Meantime, we have groups who want
abandoned vehicles towed for free, stating these no value vehicles are a cost of doing business for towing. Towing needs to figure out how to maximize revenue from these ve-hicles on their own. at the same time, u.S. based public and private salvage companies are now setting up shop in Canada. Towing is supposed to pick up these abandoned ve-hicles and the towing industry isn’t a charity. How we work with the salvage companies really affects the bottom line.
a huge cost to the industry aside from em-ployee retention is training and health and safety. That includes mental health from the exposure to the horrendous sights members of the towing and recovery industry are ex-posed too. The towing industry pays one of the highest workers compensation premium rates per $100 of income. a quick survey of WCb rates across Western Canada shows towing well above the average premium and for the most part rates are up.
Working at the roadside is dangerous busi-ness. another towing issue, lighting on trucks and at accident scenes needs to be looked at. Light blindness is a real issue and coordi-nating industry needs and WCb regulations is a must. attaining first responder status for the towing and recovery industry for police towing is a goal that is part of the lighting issue.
So there are lots of folks who want to tell the towing industry what, when and how much they are going to charge but aren’t around when it comes to writing cheques for staff, training, tow trucks and fuel. Towing is a way of life for a huge portion of the sector. It is a 24/7, 365 days a year commitment.
That’s why there is a new association! We hope you will join with your peers and stand together when lobbying for your industry.
the inside story on the formation of western canada’s new associationBy Dale Finch
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february 2013 collision RepaiR 57
The alberta automotive recyclers and Dismantlers association part-nered with the alberta Motor association recently on an initiative to reward good driving behaviour with free hockey tickets. Called “None for the road,” it rewarded drivers who had nothing at all to drink when stopped by police at local checkstops with free tickets to a junior hockey game. The program was carried out in eight different communities across alberta that have junior pro hockey teams. These include edmonton, Calgary, red Deer, Grande Prairie, fort McMurray, Lethbridge, Okotoks and Medicine Hat.
In addition to participating with aMa officials at booths set up at the arenas on game night, aarDa financially supported the initiative by providing the funds with which to purchase the hockey tickets.
as part of the event in red Deer, masking tape was placed on the floor and fans were invited to first walk a straight line. each participant was then provided with specially made goggles which simulated the impairment effect of as little as .006 per cent alchohol.
To add to the illustration, during the game’s first period break, red Deer rebels players donned the distortion goggles and tried to carry the puck around pylons toward the goal. Not one player managed to score, highlighting the serious impact that alcohol can have on per-formance, coordination and judgment, even for individuals in the peak of physical condition and training. No amount of impairment can be considered “safe,“ regardless of what other factors may be present.
AARDA partners with AMA on “None for the Road” oaRa to sponsoR
dReamlift
contentsrecycling news..........57-63“None for the road,” DreamLift 2013 and much more.
Pressure cooker...........64-65by David Gold
Continued on page 59. Continued on page 59.
The Sunshine foundation of Canada has announced that its 53rd DreamLift will depart from Toronto, Ont. on June 11, 2013, sponsored by the Ontario automotive recyclers as-sociation (Oara).
a DreamLift is a one-day, whirlwind adventure to the Magic Kingdom. The DreamLift offers a taste of indepen-dence for boys and girls with severe physical disabilities and life-threatening illnesses. for many, it is their first plane ride or their first day away from their parents. Some have never been able to travel due to their daily treatments, special feeding requirements or the physical challenges involved in their day-to-day care.
earlier in 2012, Oara, along with partner Ontario Tire Stewardship (OTS), ran a wildly successful Tire Take back event. In one week in May, participating Oara Members collected 139,000 tires and donated $358,000 to the Sun-shine foundation.
the team that covered the Red deer Rebels home game on december 14. From left: Liam Crotty, ama; Kelly popow, aaRda Board member from Lacombe; traffic safety Consultant Len Wagner; darcy Baron of ama; Bob dixon with Red deer County; Christine Waldo of ama; RCmp Constable tom harnum and ian hope, executive director of aaRda.
Volunteers from the 2012 dreamlift, ready to depart. the dreamlift can make a crucial difference in the life of a child suffering from disability or life-threatening illness.
february 2013 collision RepaiR 59
“We are tremendously grateful to Oara and OTS for making the 2013 Toronto DreamLift happen,” says Nancy Sutherland, National executive Director of the Sunshine foundation. “We know that DreamLifts have a huge impact on children’s lives. Oara and OTS are making a real differ-ence to these kids.”
“We are looking forward to our second DreamLift with the Sunshine foundation,” notes Steve fletcher, Oara executive Director. “The joy the DreamLift brings not only to the kids, but to our members is invaluable. Our members are enthused to be involved again, and while I can’t say that we will break last year’s record, we have some interesting plans to try. With the DreamLift occurring just 10 days after the close of the 2013 tire collection event, we know our members are going to be pumped, and we hope the community gets involved too.”
The Sunshine foundation makes dreams come true for children challenged by severe physical disabilities or life-threatening illnesses. for more information, please visit sunshine.ca. for more information on Oara, please visit oara.com.
OARA to sponsor ... continued from page 57.
AARDA partners ... continued from page 57.
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“None for the road” was an excellent fit for aarDa, and adds synergy to the project that aarDa funded last year with MaDD, pre-senting the film “Damages” in schools across the province.
“Partnering with aMa is also a strategic benefit to recyclers, since they have almost 1 million members in alberta, and we’d like to have a higher profile with them as desired customers for our green recycled parts,” said Ian Hope, executive Director of aarDa.
for more information on aarDa, please visit aarda.com. for more information on MaDD Canada, please visit madd.ca.
a hockey fan struggles to keep her balance while wearing special goggles that simulate the impairment that can result from even a small amount of alcohol.
60 collision RepaiR COLLISIONrePaIrMaG.COM
It is with great sadness that we an-nounce the passing of yvon Hamel of Pieces d’autos Hamel in Trois-riv-ières, Que. Hamel was also President of arPaC, Quebec’s professional automotive recycling association,
f rom 2006 to 2011.
H a m e l p a s s e d away on No-vember 23, 2012 af ter a battle with lung cancer. He was 50 years old.
nick staub named as apRa chaiRmanNick Staub was installed as the Chairman of the automotive Parts remanufacturers assoc iat ion dur ing the assoc ia t ion’s
r e c e n t I n t e r -na t iona l b IG r S h o w a t b a l -ly’s Hotel in Las Vegas, Nev.
“This is quite an honour. My fa-ther, John Staub, w a s C h a i r m a n o f a P r a b a c k i n 1 9 8 6 , a n d was a member o f aPra s i nce 1948, so it is re-
ally nice to follow in his footsteps,” he said. Nick and John are the third father and son team to have held the Chairman position in aPra.
Staub has been in the remanufacturing business since 1982 when he joined ro-maine electric. He took over as President in 1989 after his father passed away.
When asked about his upcoming term as aPra Chairman, Staub commented, “I’m honoured to be selected by my peers to serve as Chairman. My goal is to reach out to the small rebuilder and help grow our membership base, making our in-dustry stronger by uniting all segments of our industry toward our common goal. Successfully leading the association into the future and taking advantage of the brain trust available to us is an opportu-nity that I look forward to.”
Staub wi l l serve as aPra Chairman until November 4, 2013 at the conclusion of the next International bIG r Show in Las Vegas, Nev. for more information on aPra, please visit apra.org.
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february 2013 collision RepaiR 61
ford of Canada has an-nounced the return of its recycle your ride vol-untary vehicle retirement program. The program will again use the auto-
motive recyclers of Canada (arC) and its network of accredited auto recyclers to en-sure that all vehicles are properly recycled in an environmentally conscious manner.
Since the program was first offered in 2009, ford’s recycle your ride program has retired nearly 60,000 old vehicles. This year, the program has been expanded to include 2006-model-year-or-older vehicles. Motor-ists can receive between $500 and $3000 in incentives towards ford vehicles when they recycle their old vehicle under the program.
“arC has 385 of our members active on this program, in addition to our charity car
program - Car Heaven,” says Steve fletcher, Managing Director of arC. “We applaud ford of Canada and their dealers for their com-mitment to the environment by ensuring the vehicles they retire are responsibly managed by Canada’s best auto recyclers.”
all members of arC are audited to the Canadian auto recyclers environmental Code (CareC). for more on CareC, please visit carec.ca.
BMW, Boeing to research carbon fibre recycling
foRd’s Recycle youR Ride pRogRam RetuRns
bMW and boeing have signed a collaboration agreement to partici-pate in a joint venture in researching the recycling potential of carbon fibre, specifically vehicle end-of-life carbon fibre materials.
both the bMW Group and boeing are pioneers of the use of carbon fibre in their products. With the release of the bMW i3 in late 2013, followed later by the bMW i8, the bMW Group will bring two vehicles with a carbon passenger cell onto the market for the first
time. boeing’s 787 Dreamliner is made up of 50 per cent carbon fibre material. recycling composite material at point of use and at the end of the product life therefore is essential to both companies.
as part of the collaboration agreement, boeing and the bMW Group will share carbon fiber manufacturing process simulations and ideas for manufacturing automation. The collaboration agreement between the two companies is the first in the history of either company.
62 collision RepaiR COLLISIONrePaIrMaG.COM
Modernization and a need to further leverage social media were primary reasons for recent redesigns of the websites of both the auto recyclers of Canada (arC) and the Ontario automotive recyclers association (Oara).
“Part of it is to pull all of our facebook updates, tweets and blog content into one location. arC will be the creator of most of the content, with local content provided by the provincial associa-tions,” said Steve fletcher, Managing Director of arC.
Management of the website has also been moved into a WordPress format, allowing for the associations to do everything in-house.
“Harmonizing all of the information will allow us to give much better and more timely updates, and make promoting our mes-saging on Green recycled Parts and other topics much more efficient,” said fletcher.
The associations once again worked with John Couper from Couper Marketing Solutions, the smarts behind the international Green recycled Parts branding project, to pull together the web-site content, look and workflow.
To view the new arC website, please visit autorecyclers.ca. for the new Oara website, please visit oara.com.
ARC, OARA launch redesigned websites
The Ohio House of representatives adjourned recently without casting a vote on Senate bill 273, a controversial piece of legislation which would have allowed unlicensed and unregu-lated in-state and out-of-state buyers to purchase vehicles from Ohio salvage auctions. ara, the Ohio auto & Truck re-cyclers association (OaTra) and local automotive recyclers throughout Ohio have been engaged in an extensive advo-cacy effort to defeat Sb 273. ara’s discussions with Ohio lawmakers have detailed how Senate bill 273 would seriously harm the autorecycling industry, as well as eliminate law en-forcement, environmental and consumer protections that have been in place for over 30 years. Information regarding recent ara testimony, letters and press releases on Sb 273 are cur-rently posted on a-r-a.org.
legislatoRs adjouRn without voting on contRoveRsial salvage bill
the newly redesigned aRC (above) and oaRa (below) websites will help the organizations to more efficiently promote messaging on green Recycled parts and other key topics.
february 2013 collision RepaiR 63
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oaRa’s cat dRive Raises money foR scholaRship fundThe Ontario automotive recyclers associa-tion’s Cat Drive fundraising program is off to a strong start this year, with a number of do-nations already received. The Cat Drive helps provide funding for the Oara employee Scholarship Program. The program provided 43 scholarships to the children of Oara em-ployees in 2012, a total of $34,000.
a special event was held recently at aaDCO auto Parts in brampton, Ont., to an-nounce the official start of the program. Steve fletcher, executive Director of Oara, also an-nounced that as of January 2, 2013, a total of 44 catalytic converters had already been do-nated from the following Oara members:
a & L auto recyclers•andy’s auto Wreckers•Dom’s auto Parts•Jones auto Wreckers•King’s auto recycling •P & G auto•rock City auto Supplies •Valley automotive•
Oara has also received cash donations
from anprior/Ottawa auto Parts, Corey auto Wreckers, Hotch’s auto Parts, Kenilworth auto and Sonshine auto Parts.
Oara funds the scholarship program through a number of events throughout the
year, including the salvage vehicle auction at the September Meeting and the Casino auction at the annual Meeting. Oara is now asking Members to send in any of their catalytic convertors that they can spare.
The “cats” are being collected at aaDCO auto Parts in brampton, Ont. until March 8, 2013. Participating auto recyclers can drop off catalytic converters at either aaDCO auto Parts directly, or at the Oara Drop Zone, noted as a pick-up for aaDCO.
Cardinal Couriers has graciously agreed to waive the shipping charges for any cata-lytic converters that cannot be dropped off at Oara or the Drop zone, but all cats must be marked as for the Oara “Cat Drive.”
Once the catalytic converters are at aaDCO, John bruner from Coreline auto Parts will sort them and convert them into a donation to the Oara employee Scholarship Program.
The final tallies for the Oara Cat Drive will be announced at the 2013 Oara Trade Show and Convention, taking place March 22 to March 23 at the Toronto airport Marriott Hotel.
Pick-n-Pull auto Dismantlers, a division of Schnitzer Steel Industries, has acquired four of ralph’s recycled auto Parts locations in the communities of richmond and Surrey, british Columbia.
The ralph’s empire used auto Parts location in abbotsford will remain under the current ownership. The new business will be called ralph’s Pick-n-Pull to honour the history and success of ralph’s recycled auto Parts in the Vancouver market.
ralph’s Pick-n-Pull will maintain current customer accounts regardless of the location with which you were originally affiliated. Customers will also still deal with the same people they have dealt with for years.
all phones, business hours and delivery routes will remain the same. The same credit terms, warranties and return policies will continue. a statement from ralph’s Pick-n-Pull says that over the coming months, customers can expect to see fresher inventory to fill parts requests. for more information, please visit picknpull.com.
don fraser of aadCo auto Parts displays one of the donated catalytic converters.
Pick-n-Pull acquires four Ralph’s locations
reCyCLING I
64 collision RepaiR COLLISIONrePaIrMaG.COM
Recyclers and repairers are under scrutiny.
iwas all set to write an article on a completely different topic (flood vehicles) when I read Sam Piercey’s latest column on Collision Repair mag-azine’s website titled “Fight Night – It’s time to drop the gloves.” Being your typical “Rock’Em
Sock’Em” Don Cherry-style hockey enthusiast I was intrigued and read Sam’s article. The sentiments expressed in the article are all-encompassing espe-cially as it relates to the constant pressure that Sam and his industry are under and the feeling of being squeezed on a daily basis.
This feeling of being “squeezed” isn’t limited to the collecting of the appropriate amount of money for products and services as Sam explains, but it also manifests itself in the constant scrutiny of having to keep your performance metrics or key performance indicators (KPI’s) at the level’s expected, whether or not they make sense at all. As Sam explains, all of this has led to decreased efficiencies in that he has hired more staff to deal with elaborate processes and moreover a decrease in cycle times as he handles files longer. As Sam says, “… just so we could do
things the way some of our partners insist they want it done, rather than just wanting it done right.”
As I read through Sam’s article a few times I really began to appreciate what it must be like for collision repairers whose business model is very dependant on their partners to remain profitable so they can keep up with the current technology and best prac-tices in the collision repair process and to of course, compensate their people well.
Believe me when I tell you that auto recyclers don’t condone or want to participate in programs that will see you “dry up and disappear” as we un-derstand that we will disappear with you.
We understand the scrutiny you’re under and we feel it to. For the first time auto recyclers KPI’s are being tracked by third party vendors. Interpreting the data and looking for trends has been a daunting and time-consuming task for many of us.
To Sam’s point, “when does it stop?” For auto re-cyclers that question has to be measured in dollars and sense as we have to look at ourselves as being in the “money business.” What used to be a labour
of love is closer to a love of labour these days.Many auto recyclers simply do not want to play
in the late model collision parts game any longer. There has been a profound shift. Many recyclers that still play in this game are questioning their involvement. Many more have slowed down their involvement significantly and are happy to diversify into other areas. Some have even closed their doors.
When recyclers that have been around for 50 years in a major city shut down that speak volumes.
Giving up for the majority of us is not an option and while we do feel the pinch with these in-depth reports and KPIs, I suggest that we all take a step back and relax. Recyclers can have great KPI scores if we want to quality control everything to the point where the majority of our parts don’t make these estimates, but while the report would look good we would go bankrupt! It has been told to me by our consultant that he has seen recyclers with return rates that are “too low” and this is as big a concern
for him as those recyclers that have return rates that are above average. If recyclers and repairers have barriers put up that discourage making our parts stick for the repair, then something is not right.
Recyclers and repairers have always worked to-gether very well and we look forward to continuing this relationship for many years to come. At the same time, auto recyclers have to be resilient and forge
ahead on other profit centres, as it is very clear that we can’t survive if we had to rely on the late model sheet metal parts sales alone to stay in business. Let’s work together and respect each other for both our mutual benefits and make it our resolve to partici-pate in profitable deals in 2013 and beyond. CrM
david gold is the co-owner of standard auto Wreckers, an auto recycling facility with locations in toronto, ontario and niagara Falls, new York. he can be reached by telephone at 416-286-8686 or via e-mail at [email protected].
many aUto reCyCLers simPLy do not want to pLaY in the Late modeL CoLLision paRts game anY LongeR.
66 collision RepaiR COLLISIONrePaIrMaG.COM
rObOreVOLuTIONThe day of the autonomous vehicle is almost here.
self-driving cars have been part of the public conciousness for a long time, because people like to imagine things they can’t build, like a jetpack that
doesn’t run out of fuel after 60 seconds, or a smart phone that doesn’t stick to your hands. At least I assume that’s why people never seem to put them down.
The autonomous vehicle, though, is a bit different. The first known depiction of cars that drive themselves was in 1939, at the World Fair’s “Futurama” exhibit, sponsored by General Motors. The vision in that case was one of electric cars powered by cir-
cuits buried in the road and controlled by radio transmissions. Presumably human operators at a cental location would still have to make many of the decisions, as computer technology was essentially in its infancy at the time. Other than that, how-ever, the technology existed in 1939 to make autonomous passenger cars a reality. So what stopped them?
The answer is infrastructure. More spe-cifically, a lack of infrastructure to power and control the vehicles. Most of the auto-piloted vehicle schemes proposed in the past didn’t get out of the garage. Without exception, they required some form of in-frastructure that we simply didn’t have. One system, for example, proposed planting a magnetic peg in the highway surface every metre or so. Assuming that each peg cost only $1 to produce and insert, it would still cost $1,000 to do this with just one kilo-metre of one lane of one highway. You can see that the price tag to renovate all of Can-ada’s highways would be prohibitive.
The self-driving vehicles we’ve been seeing recently don’t have any of those old limitations. Google’s car has proven itself
over the course of the last year, and sepa-rate entries from Continental and Audi aren’t far behind.
Even without fully autonomous vehicles, advances in sensors and computer control are putting robots behind the wheel. Several of the major automakers have premiered collision avoidance systems in the last few months that go far beyond a simple buzzer to warn the driver. If the driver ignores the warning, or simply isn’t acting fast enough, the car itself will apply the brakes and even steer if needed to avoid a collision. People have been known to ignore warning signals when they’re tired or distracted. Computers,
of course, don’t get tired or distracted. So, what does this mean for the collision
repair industry? We’re going to see fewer collisions as these systems become more common. You would be hard pressed to find anyone who says otherwise. The colli-sions we do see will likely be less severe, as the systems will help to mitigate collisions that they don’t prevent entirely.
The next question is, what are we going to do about it? We can’t stop this revolution from happening. Trying to stuff the techno-logical genie back in the bottle never works. What we can do is diversify the shop offering as much as possible. In theory, this will allow you to pursue the type of customers collision repairers have never really had access to: re-peat business. Serve them in every other area and build those relationships. When their computer driven car does go on the fritz, they’re going to head straight to you. CrM
adVanCes ... are PUtting RoBots Behind the WheeL.
LaST WOrD
By Mike Davey
mike davey is the editor of Collision Repair magazine. he can be reached at 905-370-0101 or v ia emai l at [email protected].
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