Collision Repair 1#1

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Publisher's Message

Working together

ur collision repair industry is changing. Over the past few years I've watched the shift to a more business-oriented partner based profession. No longer can anyone insist fixing cars is the beginning and end of the collision repair industry. Generating rev enues of $3 billion annually, it's bigger...much bigger! Aside from the repair facilities, it includes insurance and manufacturing partners, suppliers and high-tech providers. And the sooner we all realize that we're all on the same side, the better.

However, change is never easy. There are those who will continue to fervently deny the process is happening. But it is, and it will continue, until all parties work together in a trusting environ ment. Our mission at Collision Repair magazine is to work towards that vision.

One of the main keys to success fully adapting to change is to start with the end in mind. In our case, we must envision an indus try that is profitable for all. It may mean fewer players, but the playing field willcontinue togrow and thOse who are progressive will reap the rewards. Therefore, our business philosophies must change first; the practices will follow accordingly.

This may be the biggest relation ship sales process We ever encounter as we convince our staffs, our business allies and our peers, that we are all partners in the same industry. To make this happen, it is our task as an indus try to look beyond ourselves

towards the big picture. Our jour ney will be easier, if our goal is shared.

For the past eight years I've worked closely with the collision repair industry as Publisher of the French-language magazine Le Garagiste Carrossier +. Recently, industry players have vocalized their need for a new publication dedicated to the business end of our industry. Collision Repair magazine is the result. Our strong team has a specific man date to help the industry reach its goal of a partner-based environ ment.

For those of you who know me, you'll appreciate my commitment and dedication to this goal. For those I have not yet had the pleasure of meeting, I look for ward to hearing how we can work together to make the collision repair industry stronger, more profitable and a better place to work.

Tool Tax Deduetions Victory at last for AIA

Starting January 1, 2002, automotive sery ice apprentices can deduct the cost of their tools from their income tax. This is a major vic tory for the Automotive Industries Association of Canada (AIA), which has been leading a coalition of automotive trade asso ciations on this issue for the past several years.

"In these uncertain economic times, AIA is pleased to see that the Federal Government has recognized the importance of the $15 billion auto motive aftermarket industry by assist ing the industry to address the skills shortage issue. The expense of basic tools was a deterrent to becoming an automotive service apprentice this tool tax will enhance the industry's ability to attract young talent," says AIA President Ray Datt.

The relief is in the form of a tax deduction versus a tax credit and will affect federal and provincial taxes in all provinces that do not collect their own taxes (exceptions are Ontario & Quebec). In the case of Ontario and Quebec, history has shown they will likely follow suit voluntarily to remain consistent with the other provinces. All tools purchased in a tax return year will be eligible, less a deduction of the greater of $1,000 and 5% of an individual's apprenticeship income for the year.

Any part of the eligible deduction not taken in the year the tools are pur chased can be carried forvward and deducted in subsequent taxation years. The individual will also be eligible for a rebate of the Goods and Services Tax/Harmonized Sales Tax paid on the portion of the pur chase price that is deducted in calculat ing employment income.

Ray Datt

The apprentice's employer will need to certify that the tools are required as a condition of and for use in, the apprenticeship.

"AIA members have themselves to thank for this major lobbying victory" says Mr. Datt. "Over the years mem bers have sent in thousands of cards, letters, faxes, emails, etc., to the Minister of Finance, Minister of Human Resources, and Members of Parliament on the tool tax issue. Success in government lobbying can be slow, but with a united industry voice such as the one we have had on tool tax, the sound business argument we had supporting tool tax deductions, and the overwhelming support after marketers have shown for this issue, our success was only a matter of time."

The government provides the fol lowing tool tax deduction example: Alexandra, an automotive service technician apprentice earns $25,000 as an apprentice in a year and spends $5,000 on new tools in the year.

Alexandra's deduction is $3,750 ($5,000 - $1,250 [the greater of $1,000 and 5% of $25,000|), representing a federal income tax savings of $600.

The budget also included several specific initiatives for the automotive sector, including:

" Increased funding for Sector Councils - 24 million of increased funding to increase support for exem plarycouncils such as CARS.

" Reduced waiting period proui sions for employment insurance retraining programs.

" Tax deductions for adult basic education tuition assistance.

For more information,please con tact Ray Datt at ray@aiacanada.com or (613) 728-5821 ext. 229.

City of Toronto Works and Emergency Services to enforce "Sewer Bylaw" to prevent pollution

The City of Torontois taking a concerted effort to crack down on pollution. Bylaw #457-2000 requires all city collision repair shops, as well as mechanical repair garages including deal ers, gas stations, car washes, transmission shops and exhaust repair shops to fill out a pollu tion prevention plan. The City of Toronto, Works and Emergency Services has faxed and mailed a package to auto refinishers in Toronto.

The Collision Industry Action Group (CIAG) and the Toronto Collision Repair Society worked with city officials to simplify reporting require ments. The form for auto refin ishers is only two pages long.

To download a copy with an explanation how to fillit out, visit www.ciia.com. You can also callthe CIAG office at 1-800 318-DENT or check out the Websites, ciag@ciia.com and infosource@ciia.com

New CFO for CARSTAR

Sam Mercanti, President & CEO of CARSTAR Automotive Canada, is pleased to announce the appointment of William James (Jim) Bethune to the position of Chief Financial Officer of CARSTAR Automotive Canada.

Mr. Bethune has held progressively senior positions within account ing firms and most recently was the Senior Vice President, Director and part owner of a large retail oriented organization within the automotive aftermarket.

Dale Dolmage appointed Spraybake Marketing Director

With more than 20 years automotive aftermarket experience, Dale Dolmage is the new Director of Marketing for Spraybake Limited based in Concord, ON. Dale's wealth of experience will be a great benefit to the Spraybake team, said Peter Wagner, Chief Operating Oficer.

Spraybake Limited is a leading manufacturer and maintenance provider of spray and prep booths for automotive and commercial markets.

PPG announces Garry A. Goudy Vice President, Automotive Refinish

Garry A. Goudy isPPG's new Vice President, Automotive Refinish.

Anative of Meaford, Ontario, Goudy joined subsidiary PPG Canada Inc. in 1970 as a sales and marketing trainee in Toronto and held sales and management assignments of increasing responsibility in Canada. He moved to PPG's headquarters in 1988 and progressed through a series of general management positions in flat glass before being named General Manager of Auto Replacement Glass in 1994. He was named Vice President, Automotive Replacement Glass, in 1997. Goudy, 54, is a busi ness administration graduate of Ryerson Polytechnical Institute.

NABC Board elects Jay Perry

At its meeting during NACE week in Las Vegas, the National Auto Body Council elected three new members to its Board of Directors including Jay Perry, Founder and CEO of Automotive Business Consultants, Inc. from Toronto, Canada and Schaumburg, Ilinois.

The National Auto Body Council is a not-for-profit association whose sole purpose is toimprove the image of the collision repair industry in the eyes of the general public and to recognize the pride and professionalism of its members.

Hyundai Auto Canada announces new President

Hyundai Auto Canada is pleased to announce Mr. Steve Kelleher has become the company's new President and CEO. Mr. Kelleher takes over from Mr. Jong Hoon (James) Lee who will become the President and Chief Executive Offcer of Kia Motors America. Mr. Kelleher is the first Canadian President in the history of Hyundai Auto Canada.

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By Lary Jefferies

CARE

A:Moving at the speed of businesS. not body shops

rewe in challenging times? You got it!How much dif ference can a minute make? What about the differ ence in the world on September 11 between 8:46 a.m. and 8:47 a m.? Nothing in our world willever be exactly the same again. What's this got to do with the collision industry? Well, it will take more than a minute to create a different and better environment for your business but, it will change. The speed of change is something you can contribute to and participate in.

Starting in 1998, about 100 people invested a weekend of their time to attend a forumn sponsored by the Paint, Body and Equipment Council of the Automotive Industry Association (AIA). The objective was to get some facts about our business; facts that no one could agree on such as the size of the industry in dollars; how many shops; how real is the labour problem and what can be done about it.

There was no national vehicle to bring people together to deal with common challenges and to seek out solutions. Out of that weekend invest ment came the Canadian Collision Industry Forum. Then came the HRDC study, Prep for the Future, a $500,000 investment in learning the real state of our industry. Then came the CD ROM, The Art of Learning, a tool designed to assist shop owners, and educators sell the benefits to young people on the collision industry for a career choice. And there is more to come as there are still many chal lenges to overcome.

The core group that made this hap pen is the AIAPBE Council...roughly 25 members who represent mainly the manufacturers, distributors and

the trade press that make their living selling to the collision industry. The CCIF consists of a chairman, admi

Adapt your product and services to the business environment,and continue to prosper.

nistrator and a core group of 25 sub committee members. Represented in this group are the collision repair owners, provincial associations, the insurance industry, the educators, the suppliers to the industry and the trade press.

This small group of 50 people has made a big difference in the Canadian collision repair industry..just talk to any of our American cousins as I did at the CIC meeting at NACE. This group has decided that they are passionate

about our business. Yes, business. Not. body shops. They believe that it is time to take a look through a differ ent set of glasses.

The high level of mutual respect is significant and noticeable. All have an interest in raising the image and profitability of the collision store. All have a vested interest in your suc cess.What is important is tocontinue working towards expanding this envi ronment past the few that are work ing on it today. More support, more energy, more speed.

We are in the business of getting peo ples lives back to normal, not fixing cars. We are retailers first. We serve the driving public. Consumers have expectations. Provide good service, innovative processes, and great qua lity; get good results.

We are also dealing withathird party that in most cases pays the bill. Accept it, deal with it, work towards understanding the challenges the insurers face, and learn how to be profitable in the environment we have. Adapt your product and servic es to the business environment, and continue to prosper.

So, you have a choice. You can contin ue to get the results you are getting. Or, you can choose to get involved and focus. And move your business for ward, at the speed of business.

Larry Jefferies is an industry leader with more than 35 yearS experience. He is Chairman of the AIA/PBE Council and

By lyikeBry:n

SCanadian Collision Industry Forum

CoiF Canada-witde forunn gesaasay

o what does it matter to you? What is the Canadian Collision Industry Forum (CCIF) all about, anyway?

Well, if you're a stakeholder in the collision repair industry, earning your living directly or indirectly from it, you'd be wise to check out CCIF... and join in.

CCIF meetings take place in dif ferent cities four times a year and are enthusiastically attended by industry people from coast to coast. The meetings provide an opportunity for local shop owners and other industry stakeholders to get involved in serious debate on the issues that really matter to them...and surprise, surprise, to just about everyone else in the industry. What are the big issues?

- Attracting and retaining skilled staff. - Education and training. - Industry image.

No surprises here, either. What about shop profitability, though? Sure it's a big issue, but increased profits will be an outcome of the progress made on the three issues above. Let's connect the dotsCompete for and attract smart employees, not just technicians, but managers, too. Pursue educa tion and training, again not just in the technical area, but in man agement, marketing, finance and customner relations. The result of

these efforts will start impacting the image of the industry. It will begin to look more welcoming and professional to Consumers, insurers and, to come full circle, to the bright young people we need to attract and keep successful businesses strong.

The great news is that there are some tremendously successful shops in Canada already leading the way. Many of them participate at CCIF meetings, willing to share their ideas and help others who want to be part of the solu tion rather than the problem.

Participants at CCIF meetings takepart in work groups that dis cuss and propose actions that will make a positive difference on the big issues. Recognizing that there is no simple magic solution to solve everything, CCIF work groups break down the issues into bite-size pieces. For example, the

CD-ROM, "The Art of Earning", was the outcome of discussion on how to attract young people into the industry. Students across the country can now watch a punchy computer presentation showing young industry people promoting career opportunities. Simple, practical stuff, and a great step in the right direction.

Shop accreditation has become a hot topic at CCIF recently, as has the debate on standardizing which parts and materials should be included in estimates. These are the kind of subjects which spark lively debate, but CCIF meetings are always handled in a way that keeps the discussion focused, civil and time-managed.

CCIF is run by a Chairman, cur rently shop owner, Glenn Hickey from Newfoundland, and a steer ing committee with representa tives from all regions of Canada. CCIF has no members, just par ticipants who want to be success ful in a respected industry. To find out more about CCIE call Glenn Hickey at 709 747 2000 or the CCIF Administrator, Mike Bryan at 905 726 9027.

Mike Bryan, CCIF's Administrator has 30+ years of industry experience with a paint supplier and is now an independ ent business and training consultant. Mike led the grOup that acted as catalyst for the creation of CCIE

Introducing Glenn Hickey, new Chairman for CCiF

Glenn Hickey has come a long way from painting cars as a teenager in the back end of a chicken coop on his father's farm. Today, as President and owner of the Collision Clinic in St. John's Newfoundland, he runs one of the biggest collision repair facilities in the Maritimes, and one of the most productive in the country. Recently, he accepted a new challenge; to lead the Canadian Collision Industry Forum onto bigger and greater accomplishments.

"Iwant to continue to build on the good work of Ken Freisen, the former Chairman. Ken was committed and focused and I plan on continuing his vision," says the 45-year-old Hickey, who is a winner of the prestigious Hall of Eagles Award. "I see CCIF as a truly national forum. I will work toward maintaining involvement of people from all over the country. I want to create a following of regular attendees from all over Canada regardless where the meeting is being held.'

Local Association Support

The new Chairman promises to seek the support of local associations and suppliers to get the people out to the meeting when it is in their town. He says this approach worked very well in Quebec where there was standing room only.

Another key focus is maintaining CCIF's total independence and non entity status and to ensure CCIF remains a forum where all partici

pants are of equal standing, regard less of position or experience. Hickey says he will work hard with Administrator Mike Bryan to Improve ongoing communication with all related industries.

"The most significant accomplish ment of our most recent CCIF meet ing in Toronto was that the Parts and Materials Committee facilitated a meeting of the major Canadian sup pliers and distributors of aftermarket sheet metal," said Hickey. "The result an agreement by all parties to cre ate a forum, association or entity of some nature that will allow them to meet on a regular basis."

Healthy Dialogue Needed

Hickey also says he enjoys the healthy dialogue that takes place in the open forum environment. He says this type of communication is a key catalyst for the change that is needed in the collision repair industry.

"Take for example the lively discus

sion on a draft report on National Standards for Body Shops tabled by committee chair Tony Canade, General Manager of Mississauga's Woodchester Collision. It was agreed that Tony and his committee would revisit the issues and pursue a report that was more focused on collision repair facilities as opposed to attempting to cover the broader focus of any and all types of body repair businesses. Now that's progress in the making."

Hickey promises to be in regular con tact with committee chairs between meetings to ensure that goals and deadlines are met. However, putting into practice the skills that have made him successful in business, he is ever mindful that these people are volunteers and busy in their daily lives.

In his daily life, aside from The Collision Clinic which he started in 1978, and his relatively new venture of Auto Parts Network, Glenn and his wife Joanne have two daughters, Kala, 11, and Taylor, 8.

"As Chairman it is my job to facilitate the meetings and maintain order and consistency. I will not always be in the position to comment or express my personal views during a discus sion. Keeping my opinions to myself during these times might prove to be my greatest challenge."

Winning Ways

At 427 Auto Collision, it's all about commitment...

to

people, process and partnerships

By Darryl Simmons

|ever compromise your quality... whether it's repair, service or employee relations. According to Lorenzo D'Alessandro. General Manager of 427 Auto Collision in Toronto, Ontario that's the secret to success in the collision repair industry. And in an industry where success is measured with peer recognition, pro duction efficiencies and cycle time, this formula certainly works.

After a visit, it was clear why 427 Auto Collision was named North America's Best Facility at the prestigious awards ceremony at NACE in 2000...the only Canadian ever called in the his. tory of the award.

"Don't worry about the competition, or what others are doing. Just focus on what vou do and do it better" Lorenzo says. "This is a people-oriented business, from the front door to the completed repair.

Although the success formula seems simple, the key is in the details and exe cution. This is where Lorenzo's true genius in the "remanufacturing" (as he likes to call it) industry shines.

"This is a very fragmented industry.Nobody has yet figured out a predictable and profitable process driven model."

But the 427 Auto Collision process model is close...really, really close!

LorenzoD'Alessandro,

General Manager, 427 Auto Collision.

Below, the reception area is open and welcoming.

The details are constantly being updated and tweaked by the senior management, comprised of Lorenzo and his two brothers,. Frank looks after the production side and John's main responsibility lies with estimating and onsumer relations All major decisions are made within this team environment, under the watchful eye of the father, Ralph D'Alessandro, whostarted the business 27 years ago with a pasion for quality and a vision of partnerships with manufacturers and technology.

Ralph instlled in each of his sons this driving desire for innova tive solutions and conmmitment tocustomer satistaction. In 1975, Ralph visited European shops and retumed filled with ground breaking and revolutionary technological ideas. True to his inno vative spirit, he had engineers build him one of the first dowi draft paint booths in North America. This DAllesandro vision is S strong us ever, now carried forward through his sons

Today, a work order follows each repair with conmplete informa tion as to what must be done at each step along the way, It's al part of the process that keeps workers focused and cycle time reduced.

"Management's job is to make sure Roch and every employee knows what is expected of them, and that they bave all the tools and materials thev need." says Lorenzo. "For the bod man in the sheet metal department that could mean anything from having all the body parts necessary to com plete the repair, to proper training."

The IS0 9002 certified centre, has more than 50,000 square feet in two buildings. ISO audits, conducted by a consultant four times a year, keep employees on track with one major audit annually to make sure upper management stays in line. These. ike the Consumer Satisfaction Index reports posted weekly in several key locations, are not taken lightly.

"Everyone, management, administra tion, appraisers and production tech nicians are given constant feedback. CSI reports keep us all on track."

Expansion over the last year has resulted in much larger capacities and potential. Playing a key role in this success and growth, Lorenzo credits his manufacturer/supplier "partners."

"We get great support from several industry players. Our Quick Repair Lane is basically a shop within a shop, a system developed by Sikkens and 427 Auto Collision to improve our cycle time and productivity. Each car with less than a thousand dollars in dam age enters a separate division. Things go quick, with positive results for cus tomers, insurers and the shop."

Other systems in place include three Nova Verta paint booths and prep sta tions, Sikkens and Akzo Nobel Spray Products and three Car-o-liner frame machines...the newest one a top-of the-line unit complete with the latest in computerized Car-o-tronic measur ing equipment

"We like to think of accidents as oppor tunities. Opportunities to make our partners on the insurance side shine and to give them the chance to firm up relationships with their clients. We want tomake them look good in front of the client. This can help them ensure repeat business."

The D'Alessandro's have no fear what about technology...they Soever

The D'Alessandro's: From left, Frank, Lorenzo, Ralph and John

embrace it and use it. In techno terms, they are, as they have always been, early adopters... trendsetters who beta test technologies and implement solutions before many others are even aware of their existence.

Lorenzo is currently beta testing new shop management software for Mitchell, providing feedback about quirks and glitches and making rec ommendations for improvement.

He doesn't get paid for this, but con siders it part of a greater learning experience. A value that he not only recommends to his staff, but insists on.

"Allour staff are trained and retrained on a regular basis. Even if a technician wants to upgradea technical skill that is not readily apparent, but can prove that it will help him do his job at some point in the future, we are there with 100% support."

This type of support is part of the respect that the D'Alessandro's have for their employees. Perhaps that is why the turnover that plagues the industry is not a big problem for 427.

"Most of the people here are here for the long haul. We don't pay flat rate, so there is more camaraderie. Our entire staff, from the painters to the sheet metal workers to the guy driving the

parts cart, all know they are valuable. Not just for their work, but for their views. Each week we have staff meet ings and it is their input that helps us advance. Self respect is a great moti vator."

So is the health benefits plan, flexible vacation scheduling and the employee pension plan.

"We set up a pension plan that will help ensure an easy transition to retirement for the staff. There's no rea son why these types of benefits should be limited to other industries," says Lorenzo.

"Our biggest asset is our people, and our process keeps them happy. With employees, both new and seasoned, attitude is much nore important than the skills...skills can be taught to someone with the right attitude, but someone with a bad attitude is usual lynot worth the investment.

The D'Alessandro's are enthusiastic about the future of the collision repair industry. They see a role for all types and sizes of shops, as long as they are legitimate. As for the techniques and processes, Lorenzo's eyes light up at the possibilities.

"We're going to see barcoding of parts at teardown and ordering stage; Web based tracking systems for manage ment, insurance companies and cus

tomers and much,

"But no matter how technical and process driven we become, we will always remember our commitment to quality service and never compromise our integrity. Our key to success is to never assume we are the best."

But you can guarantee that others will step in and proclaim that for them.

COATINGS

What's New For '02

It's obvious research departments of the major manufac turers have been working diligently to meet collision repair facilities' needs to reduce cycle time and improve productivity.

Answering the industry's needs are a host of new high-tech colour matching systems, quicker primers and topcoats, as well as spot repair kitsand materials to get bigger profits from smaller jobs.

Abig trend for 2002 is high-tech solutions to match colours correctly and quickly. Major coating manufacturers are overcoming the myriad of vari ables affecting finishes, ranging from temperature changes and location differences to application procedures.

DuPont's VINdicator

One of the biggest advancements is DuPont's VINdicatorTM a revolu tionary new colour tool for obtaining a superior colour match using the vehicle's own Vehicle Identification Number (VIN).

"VINdicator has been exten sively field tested and field proven, " says Bob Livingston, DuPont's Colour Marketing Specialist.

"Customers report that it delivers dead-on matches that save time and dramati cally increase productivity."

The VINdicator formula retrieval system is claimed to provide a superior colour match for 98 per cent of the vehicles sold in North

ICIAutocolor Provides

America since 1997 and it works with DuPont's ColorNet system (Windows version). It actually uses the Vehicle Identification Number and selects the best available ChromaPremier colour formula.

One-Step Engine Bay Repair System

ICIAutocolor's new 2K Engine Bay Repair System lets collision repair cen ters improve engine bay repair productivity through time and cost savings.

The 2K Engine Bay Repair System is claimed to duplicate the OEM process, in which a single foundation coat is colour-keyed to the vehicle's exterior. When repairs are necessary, collision repair technicians apply the activated 2K Engine Bay Repair colour to all interior and exterior damaged areas in one step as opposed tothe traditional two-step process.

Combining colour chips with high-tech, BASF makescolour matching simple, and fast. The SmartCOLOR Formula Lookup CD is a perfect "first step" in finding an electronic colour information solution. Replacing piles of microfiche, colours can be deter mined by OEM code, model. COLOR-MAX number. or even by a competi tor's paint code.

"As an addition to the SmartTools family. SmartCOLOR allows BASF customers to match colour with unprecedented speed and accuracy. The days of the microfiche are coming toan end and the benefits are realized both by paint companies and their cus tomers," says Matthew Simpson. Marketing Co-Ordinator for BASF Canada.

The new COLOR-MAX 2 system is the next generation of BASF's visual reference tool. Now fea turing more than 4,700 metallic colour chips and a more concise selection of solid colours, the system is claimed to cut colour matching time by up to 75 per cent. Each chip is sprayed with BASF refinish paint according to formula. When used in con junction with SmartTRAK2 paint management software and the SmartSCAN spectropho tometer, COLOR-MAX2 becomes a sophisticated colour manage ment system.

Small Job Solutions From Sikkens

With the introduction of Sikkens Aerosol Products, AkzoNobel is offering options toget small jobs done quicker. The user-friendly spray cans

means less wastage and more profits.

Primer PO for plas tics is fast and easy to use, requiring only a single coat and elimi nating the need for gun cleaning. Since it is non-sanding, the re-coat time is only 10-15 minutes.

Coatings.

For surface cleaning, M600 and Anti Static Aerosol Surface

Cleaner offer conven ient options.

AkzoNobel alsorecently introduced its Sikkens AutoPrep Etching Pen. This ready-to-use primer works similar to a large pen-shaped marker with 1.3 oz of materi al. It is excellent for small areas of aluminum, bare steel and galvanized surfaces.

PPG Industries CYBERMATCH

PPG Industries recently introduced its new CyberMatch Color Matching System at NACE. The handheld device employs a patent-pending optics system that measures a car's finish with five reflective angles. The device, according to the manu facturer, is able to access a central database containing more than 700,000 colour-matching formulas.

The handheld CyberMatch device features an ergonomic design that includes cushion handgrips and left/right hand controls as well as a large LCD screen for viewing menu options. It has a built-in barcode scanner used to input the Vehicle

Identification Number (VIN). The device is used in conjunction with a docking station that provides built in calibration, continuous charging of the on-board battery, and linkage to the repair shop's computer.

The system can even provide mate rial usage reports and other data useful as management tools to help improve the shop's business

Sherwin-Williams Introduces Ultra 70000 CC930 Speed Plus Performance Clearcoat

Meeting the need for speed and productivity, Sherwin-Williams is introducing Ultra 7000®0 CC930 clearcoat. This new clearcoat is the first of many new Performance-Plus products the compa ny plans to launch over the next year.

CC930 is claimed to produce excellent gloss hold out and through cure in both air dry and baking environments. The new clear is out of the dust in as little as 20 minutes and, according to the manufac turer, can be cut and buffed in about 90 minutes.

WThe innovative Performance-Plus line is sure to strengthen our already powerful collection of ULTRA 7000 products," says Bob Leibel, Director, Sales and Operations, Automotive Division, of Sherwin-Williams Canada.

Autobase

Akzo Nobel is offering a new generation of colour, with its all-new Autobase Plus. In addition to improved colour matching capability, the manufacturer claims the product delivers better coverage, spraya bility and more consistent metalic control.

"With Autobase Plus, you get all the bene fits of the first generation of Autobase cou pled with even better sprayability and colour match," says Rejean Marchand, Marketing and Services Manager, Car Refinishes, N.A. of Akzo Nobel Coatings.

"It adds up to improved refinish productivity, which translates into an improved bottom line."

Autobase Plus is claimed to take only a few minutes to flash, just three to five min utes between coats and 15-20 minutes before taping or clear coating.

All of the toners have a similar consisten cy, which makes for more accurate pouring and mixing. The tone numbering system makes for easier mixing because the toner numbers all follow the same code.

Glasurit Introduces Repair System for Small Jobs

Small repair work can add up to big revenue for collision repair faci lities with Glasurit's new Small-Damage Repair System (SDXS). Offering fast depen dable repairs as a value-added service at a reasonable cost, the innovative system allows for repairs with out the need to clearcoat an entire panel.

"Scratches, stone chips and other types of small paint damage are a common annoyance," says Matthew Simpson, BASF Canada. "Now these little annoyances can mean increased profits and happier cus tomers."

The SDRS is limited to small scratches and defects up to three cen timeters in diameter, on vertical surfaces only, which is where most minor paint dam age occurs. Glasurit 352-500 spot blender is a newly developed product that is key to the system's success.

Conference seminars and workshops had record participation

NACE Wrap Up

Crowds packed the aisles. of the Las Vegas Convention Center to see the latest collision repair technology, products, services and equipment at the 2001 International Autobody Congress & Exposition (NACE).

Exhibitors were thrilled with the turnout, which surpassed even organ izers', expectations. Away from the show floor, the general sessions and seminars also proved extremely pop ular as audiences packed in.

"Attendees showed thirst for education as many of the NACE Conference seminars and workshops had record participation. These num bers validate that our selection of topics for this year's event was on target with the needs of the industry," said Dana Bellantone, NACE show director.

One of the highlights was the Opening General Session forum with a lively discus sion about the most challenging issues facing the collision repair industry, and an opportunity for Allstate's Chuck Paul Vice President of the Claim Strategy Group in the Property-Casualty Claim Services

Organization to explain its strategy toacquire Sterling Collision Centers.

He talked about the key trends influ encing the property/casualty mar kets, including consumer demograph

ics and behaviors, and Allstate's com mitment to meet customers' needs.

"Customers look for quality repairs,

There were many Canadians on site, including Bob Leibel (eft). Director Sales and Operations, Sherwi-Williams Canada, with Wayne Johnson and Serge Leblanc (right).

reasonable costs and timely repairs" he said. "Ninety percent of all colli sion repairs are paid under an insur. ance contract. However, there is a fundamental misalignment of incen tives between the collision repairers and insurers, and the customer is mostly caught in the middle."

According to Paul, the Alstate/Sterling Network is designed to ensure quality work, faster repairs and on-time delivery by assuring that repair facilities and Allstate work together. He says this is not a threat to independent collision repair facili ties, which offer quality service and integrity.

"It is a new type of working arrange ment that creates more value, but it does not limit consumer choice."

Also during the General Session, host Steve Pernick and NACE 2001 Chairman Chris Dameron, talked about new industry developments and challenges that still need to be addressed. Dameron praised the information providers for stopping the encryption of data and talked about OEMs entering the collision repair business, as well as the contin ued growth of direct repair programs (DRPs).

He talked about the strides made by several industry organizations to improve management and technical training and closed by reminding col lision repairers that they maintain the right to do business with whomever they cho0se.

PROFIT TOOLS

Software solution promises increased productivity

Mitchel announces Version 7 of ABS management system

S:hopmanagement systems are quickly moving from the wish-list into the category of essential business tools. To help collision repair managers further boost their bottom line by saving time and money, Mitchell International has launched Version 7 of its ABS Body Shop Management System.

"Progressive managers know the value of working on their business, as opposed to working in it." says Mike Jerry, National Manager Collision for Mitchell. "Our systems provide the tools necessary to expand business by increasing productivity Profitability is something we want for our partners in the collision repair industry:"

Advanced Business System (ABS) Version7 offers a wealth of new func tions, but one of its unique characteris tics, is the ability to access it remotely from the Internet or a private network. It communicates openly with CIECA standard EMS files and includes an Internet-standard XML data export for repair orders. This allows individual shops or chains to send management reports and other data, via the Internet,to a central location for analy sis by shop owners.

"Remote access is an important func tion for multi-shop owners. They now can have direct access to their facility's information at their fingertips whether they are across town or a hundred miles away." said Jerry.

According to Jerry, beta testing of ABS Version 7 showed collision repair shops can save up to 30 minutes per repair order, increase productivity and streamline business functions.

A strong marketing component com bined with a report generator will help facilities focus expansion by determin

ing the profit base according to types of customers, and even types of repairs.

He says shop owners using ABS Version 7 will also be able to:

" Import industry standard UDS and EMS estimates and easily export data to the Internet.

" Save time as much as 30 minutes per repair order - by offering com plete supplement support for all CEICA compliant estimating systems.

"View a total of more than 100 avail able reports, including detailed break outs of personnel, job functions and locations.

" Track estimating activities to increase sales performance.

" Simplify parts management with ABS' ordering, receiving and costing processes. Manage job costs by providing reports that highlight profits and loss es generated at every step in the repair process.

" Maximize employee efficiency and productivity by assigning employees to jobs that capitalize on their skills and

provide useful reports to detail their performance.

" Track marketing efforts so that money is spent on those that best gen erate sales.

" ABS 7 will also interface with QuickBooks, the small business accounting and financial management software from Mountain View, Calif based Intuit Corp.

ABS data interfaces with QuickBooks, Lawson or MAS90 accounting systems and BusinessWorks accounting soft ware. Users can produce financial statements, print invoice and customer statements, manage AR/AP, perform job-costing analysis and produce gen eral ledgers among other things.

The interface will save users time and increase efficiency by eliminating hours of duplicate data entry and data errors," Jerry said. "Streamlined busi ness functions have a direct impact on the bottom line. We believe ABS 7 adds

chel

Mike Jerry, National Manager Collision for Mitchell

an entire new set of profit-enhancing functions that can turn any size of facility into a more productive enter prise,"

By John Soris

FRULES & REGULATIONS

Indsiryiaces dilemna as rebuilt airbags recalled

ederal Transportation Minister David Collenette is urging all provinces to follow Quebec's lead and recall rebuilt airbags.

This follows action where the Societe de l'assurance automobile du Quebec (SAQ), the province's automobile insurance board, obtained an injunc tion ordering a firm to cease rebuild ing and selling rebuilt airbags.

Two firms were accused of assem bling airbags with gunpowder and other explosive substances as an igniter that "literally exploded," according to the board's petition.

that carries an insurance policy obli gating the insurer to repair the vehi cle to pre-accident condition i.e. work ing airbag(s). This can add, on aver age in Ontario, $1,300.

The Motor Vehicle Repair Act of Ontario mandates an itemized invoice detailing whether parts are new, used remanufactured.

What does a shop do?

While legislators try to find a faulty airbag recall process, and insurers worry about fraud issues, consumers are uneasy. Shops are advised to show the original airbag invoice and the name of the purchasing dealer to confirm it was not returned. Shops can check if it is an OEM bag, or if electrical current is reaching it, but there are reports some OEM compo nents were used in the rebuilt units. Many customers will have to rely on the reputation and assurances of the shop owner.

The Future

There is a common misconception in Canada that airbags are required in allnew vehicles. They are not. Unlike the U.S., where airbags must be installed, Canada's OEM vehicle manufacturers voluntarily include

The Provincial Problem them.

New cars are federal responsibilities, but in most cases, aftermarket parts fall under provincial control. However, in Ontario many motor vehicle technicians will not sign a mechanical safety standards certifi cate if an airbag has been removed, even though there are no legal grounds. Ontario-based collision repair technicians performing struc tural standards inspection (see www.ciia.com under "Inspection Stations'") are not required to check the airbag either. Quebec requires collision repair techs to inspect the airbag.

Into this mix comes the insurable repair of a collision-damaged vehicle

Shops are advised o show the original airthag ivoice and the name of the purchasing dealer to confim it was not retumed

However, new parts do not have to be identified as OEM or aftermarket. Nor is the manufacturer or supplier name needed.

So, how do you recall airbags from the installed consumer marketplace? If an invoice says "rebuilt airbag" then the consumer can contact the repair facility or insurer. If the invoice sim ply says airbag, then no one can iden tify the manufacturer.

If shops identified the supplier and model/serial number of the airbag on the bill, then disclosure issues would be over. This is one option being con sidered by the Ontario government. Another option is adding airbags to the required parts disclosure listing that accompanies each salvage vehi cle.

The Collision Industry Action Group has submitted a brief to the Ontario government urging a faulty parts recall provision.

John Norris is Executive Director of the Collision Industry Action Group-Ontario (CIAG). John is also on the stakehold er review group for the Ministry of Transportation's Stolen and Salvage Vehicle Project and presented the orientation Workshops across Ontario for the program.

Good customer communication is key to providing solutions

By Jay PerTy

elcome to a series of articles to give you a perspec tive on an age-old mental wrestling match. You as owners of private businesses have made tremen dous sacrifice to be "self-employed." When facing the daily tribulations it sometimes gets to the point of wondering who works for whom!

There are many influences on our independent enterprises. Customers, with their demands of better-faster cheaper. Governments with ever increasing legislation. Competition putting pressure upon us to do better. Employee demands and even the community at large influences our conduct.

You hold much influence over others. Communications can build or demol ish, smoothen or bristle, calm or upset, invigorate or weaken. It is skills in communication that does all of the above.

Let's start with the influence on our business Iconsider the most impor tant, the customer. If you do not place importance upon the consumer's right know, you set up a dynamic that will eventually cause problems. These problems show up as wasted work, unpaid services, lost income (both real & potential), conflict with workers, loss of reputation, friction with other businesses and more.

If we look at some very simple princi ples we can begin to strip away the preconceived ideas as to how business is to be done. Often times we do busi ness the way we do business because it is always the way we have done business.

Visitors to your stores. all come in with the same notion. Problem is, the customer shopping for estimates doesn't know what they are doing!

Focus on the problerm and offer solutions,

then let then choose

Neither does the person that would prefer to get a cash settlement. What do you do? You stand up reaching for your pad, prepared to make notes on the same damage that who knows how many other shops have already or will analyze before the day is done.

You do that because it is the way business has been set up. You are giv ing no conscious thought to what you are doing. You are supposed to be in business to help people with their problems.

Think about it! Every business con ducts sales.What is a sale? Look at it from the consumer's side. A sale to the consumer is a purchase. A pur chase is the acquisition ofasolution. You need to focus on the problem and offer solutions.

I have sat in many a prospective client's office and watched as 40% of the possible increase to their busi nesses come for an estimate.. The writer goes into "auto-pilot", produc ing an estimate and making a feeble attempt to close the sale. They are there to get help don't let them walk away! Focus on the problem and offer solutions, then let them choose.

The industry average languishes about 60% closing ratio. If a better job was done at the front door, it would be substantially higher. Based on our experience if a shop has less than a 95% closing ratio we can authorita tively say the front-end staff is not doing a good job at problem identifi cation and solution presentation. Our clients consistently perform at that level, month after month year after year. That's howv we know it can be achieved!

See you next issue when we will dive into this subject even deeper! In the meantime think!

CARSTAR Network Brightens Hopes for Charity

A $225,000 gift towards curing Cystic Fibrosis highlights anniversay gala

They came from across the country and across the indus try to help CARSTAR celebrate. Franchisees and head office personnel mingled with partners from the manufac turing sector, distributors and a whole host of insurance company representatives at a gala evening featuring a charity casino and silent auction. The crowning glory of the evening, however, came in a heart-warming ceremony when Sam Mercanti, CARSTAR Canada's President and CE0 handed over a cheque for $225,000 earmarked to help fund research into a cure for Cystic Fibrosis.

Sam Mercanti, CARSTAR President and CEO

"We are blessed in this industry with the good fortune to be in the position to help others. On behalf of the Morgan Firestone Foundation and the CARSTAR network of hard-working personnel who have made it the suc cess it is today, I am honored to present this token of gratitude and support of the bigger com munity surrounding us," Mr. Mercanti said. "I look for ward to continued growth and the opportunity to help out in the future. I

believe in my heart that together we are going to find a cure for this deadly disease affecting Canadian children and young adults."

Money was raised primarily by the Canada-wide FrightLitesTM campaign, created to help keep children safe while trick-or-treat ing. Last October, Foundation volunteers and CARSTAR stores sold FrightLites (glow sticks) in communities across Canada to be worn with children's costumes.

Each year, CARSTAR celebrates with its staff and partners with a special affair. This year, the ele gant and renowned Carmen's Banquet Centre in Hamilton pulled out all stops, featuring a wealth of hors d'oeuvres and desserts along with featured live music from ABBAmania, with their brilliant re-creation of the music of ABBA. A charity casino offered guests a bevy of donated prizes from CARSTAR's many supportive business partners.

Back Row: (from left) Larry Jefferies, Exec. VP, CARSTAR: Craig Dowhaniuh, Exec. Di:. The Morgan Firestone Foundation: Stan Keyes, MP Hamiltion West. Front Row: Sam Mercanti (left); Sam Malatesta, VP Marketing and Insurance Relations CARSTAR

"It gives me great pleasure to be here to help celebrate this organi zation's growth and success," said Refinish Russell, Derrick Business Manager of DuPont Canada, as he awarded a special prize of Daytona 500/NASCAR tickets, complete with pit pass and racing jacket.

During his address to the audience, Mr. Mercanti paid a special tribute to all the CARSTAR network, including the franchisees, manu facturing and insurance part ners, and the dedicated head office staff. He specially pointed out Executive Vice President Larry Jefferies, Sam Malatesta and Karen Puckering for their hard work and successes.

DuPont Canada's Refinish Ontario Sales Manager, Michelle Huot, and Derrick RuSsell, Business Manager, Refinish

AccelerateYour Knowledge with an Exciting Learning Line-Up

Get set for an impressive linc-up of learning opportunities organized at the Canadian International Automotive Show being held May 3 to 5, 2002, at the International Centre in Toronto, Ontario.

Well-known business speakers include PBE expert Scott Biggs, client service guru Jeff Mowatt, automotive service business consultant Bob Greenwood, and financial commentator Fred Ketchen.

"TheAIA Show is evolving from an old-fashioned trade show into a dynamic learning event for everyone in the aftermarket industry" explains Ray Datt.

Of special interest to the collision repair industry are the following seminars:

Inside Sales

Norman Rose, Excel Sales Consulting

10:30 am - 12:00 noon or 2:30 - 4:00 pm Friday, May 3

10Steps to a Better Collision Repair Business

Scott Biggs, Business Development Group

10:30 am - 12:00 noon or 2:3Ð -4:00 pm, Saturday, May 4,

Installer Trends & Financial Overview

Bob Greenwood, E.K. Williams and Company Ltd.

10:30 am - 12:00 noon or 2:30 - 4:00 pm, Saturday, May 4

Art of Client Service

Jeff Mowatt, J.C. Mowatt Seminars Inc.

10:30 am - 12:00 noon or 2:30 - 4:00 pm, Saturday, May 4

For more information contact: Denise Faguy, AIA Manager, PublicRelations,

Tel: (519) 763-9660, Ext. 293, Fax: (519) 837-3408:

E-mail: denise@aiacanada.com

Insurers to Stop Referrals At Toronto Collision Reporting Centres

A panel of three justices of the Ontario Court of Appeal has ruled insurance companies can no longer recommend preferred repair shops at City of Toronto Collision Reporting Centres (CRCs). At issue, was city by-law designed to prohibit tow truck operators or insurers pres suring a consumer regarding choice of repair facility at CRCs.

City officials have advised the CRCs they will enforce action to ensure the Court of Appeal verdict is followed. Since January 1, 2002 centres must have signs conspicuously placed advising accident victims it is an offense for anyone to recommend a collision repair facility.

The City of Toronto, working with the collision repair industry, created an accreditation list of repair facilities that meet industry standards for equipment and compliance. This list of almost 200shops is available at no charge at the CRCs. Consumers can freely choose from that list of shops for their vehicle repair.

The Collision Industry Action Group and the Toronto Collision Repair Society were involved in the original by-law's drafting.

By Darryl Simmons

Expanding the vision of collision repair

Anew magazine for a new industry approach

et's imagine, for a minute, a whole new collision repair industry. Let's stretch our imaginations and envision customers that are happy, manufacturers that take an active role as partners and insurance compa nies that not only want harmony, but are willing to put their money where their proverbial mouths are. Let's imagine an industry blessed with amazing new technolo gies in materials, processes, equipment and computerized hardware and software solutions. Let's imagine an indus try where everyone, from 0EMs tolocal insurance apprais ers, wants nothing more than to see successful facilities. But, whoa!!Hold on there! This is already happening.

Welcome to Collision Repair maga zine, a fresh and proactive approach to the collision repair industry.

We believe in promoting the industry from within by expanding the tradi tional borders beyond those who are responsible for repairing the cars.

Forget the talk about insurance com panies entering the repair side...for the most part it will remain talk. Insurance companies don't want to stray from their expertise any more than facility owners want to become part-time florists. We all want the same goal; a happy customer. It's the happy customer who returns to your facility, the happy customer who renews their policy. The happy cus tomer ultimately keeps this industry moving forward.

Cries for higher door rates may echo down the line from front office man agement to the shop floors, but intel ligent managers know that's not where the real difference will come from. Even if insurance companies raised rates right across the board it would do little to solve the problems

facing the industry...namely lack of qualified technicians, retention, train ing, and image. Sure, some owners

Paint manufacturers, insurance companies and other stakeholders want the collision repair facilities to flourish

might make a better profit margin, but Idoubt the revenue would trickle down to where it matters most.

On the other hand, if that money was reinvested directly into the entire industry it would make a difference. Training programs, either guaran teed by the facility

or paid out of a special fund directly by the insurer, would be money well spent. But let's focus on the good we have at hand, because there is a lot.

The Future is Here

New technologies and materials mean repairs can be done quicker, easier and cheaper than ever before. New shop software and tracking sys tems mean improved customer satis faction...more profits. And these are at the beck and call of any legitimate shop for the asking. And you will read about them first in Collision Repair magazine.

We are standing on the brink of a brand new future...a future in which all stakeholders share a common goal of customer satisfaction and prof itability.

Collision Repair magazine will be at the forefront, profiling progressive facilities and partners, as well as delivering the news and information needed to advance.

The tools are there for all who want them. Those who take advantage will prosper.

Darryl Simmons is the Associate Publisher of Collision Repair magazine. He has more than 15 years experience in communications and publishing..and one year as owner of his own collision repair centre.

Little dings mean a lot.

You've heard the old saying that "itle things mean a lot".,Well, little "dings" can also mean a lot when you're talking about paint repairs. Soratches, stone chips and other types of small paint damage are a common annoyance for owners of new or expensive cars. Now these litle annoyances can mean added revenue for you.

In the past, small-damage repair was often more trouble than it was worth, because most customers were not willing to pay the cost of doing the job properly.

But now those small repair jobs can mean extra revenue for your shop. The new Glasurit Small-Damage Repair System" allows you to offer fast, dependable repairs as a value-added service and at a reasonable cost. Using this innovative system, you can make small repairs (up to 3 cm in diameter) without the need to clearcoat an entire panel-and the repairs are covered by the famous Glasurit Lifetime Warranty. All of this adds up to real added value for your customers. And a real profit opportunity for you.

So if you thought you couldn't sell small damage repair, think again. Now you can.

The Glasurit Small-Darmage Repair System"M Consists of acompact kit that is only available at BASF training facilities. The kit includes two specially designed spray guns and an instruction manual inprint and CD-ROM formats.

The price of the kit also includes a two-day training session for certified paint technicians that ensures Correct use of the system.

For more information about the Glasurit Small-Damage Repair SystemN, call 1-800-825-3000 or e-mail TheFuture@basf.com.

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