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T O D AY ’ S M A G AZ I N E F O R C O L L I S I O N A N D I N S U R A N C E P R O F E S S I O N A L S T O D AY ’ S M A G AZ I N E F O R C O L L I S I O N A N D I N S U R A N C E P R O F E S S I O N A L S PM 40014105 VOL.7 | NO.6 I DECEMBER 2016 I $ 4.95 Autosphere.ca SPECIAL FILE TOOLS & EQUIPMENT JACK ROZINT Weighing the Options SEMA 2016 Coverage Inside HERE & NOW Adding Mechanical Repairs FINISHMASTER CANADA Michel Charbonneau, Vice President, Sales & Marketing, PBE Division ADDING VALUE BOOST YOUR PROFITABILITY. Introducing Color Advance, the new line of Glasurit® mixing base concentrates that take painting efficiency to a whole new level. Color Advance mixing base concentrates deliver better hiding, reduce process times and save basecoat material by up to 50%. Plus you retain the proven advantages of the Glasurit 90 Line,™ such as world-class appearance, OEM certifications, proven quality and maximum efficiency. Get Color Advance and boost your profitability. Visit basfrefinish.com/GlasuritColorAdvance to learn more. Autosphere.ca Collision Management 3 FEATURES CONTENTS IN EVERY ISSUE VOL. 7 I NO. 3 I $ 4.95 I DECEMBER 2016 SPECIAL FILE OUR COLUMNISTS 10 INDUSTRY TRENDS Weighing the Options 12 MSO SPOTLIGHT Keizer’sCSNCollisionCentre 20 STRUCTURAL HOLDING Tweaks Over Tonnage 21 MULTI-MATERIAL WELDERS Worthy Workhorses 24 NEW PRODUCT Prospot PR5 Riveter 26 SEMA 2016 Class & Creativity 4 EDITOR’S NOTE 6 ACROSS CANADA NEWS 8 HERE & NOW Coming Together 23 AUTO RECYCLING From Auction to Shop – Steve Fletcher 22 LOOKING TO THE FUTURE Differentiation – Leanne Jefferies 28 REFINISHING Brilliant Blue Shines at SEMA – Jason Reitz 30 VIEWPOINT An Ongoing Commitment – Rémy L. Rousseau 14 COVER STORY FinishMaster Canada Adding Value 18 TOOLS & EQUIPMENT OEM Certification 25 CCIF VANCOUVER Certification & Cooperation 13 ASSOCIATION VIEW Pinpointing Problems – John Norris 4 Collision Management December 2016 EDITOR’S NOTE I t’s hard to believe the end of the year is upon us. It seems like yes- terday we were just toasting the start of 2016 and the possibilities it might bring. Certainly a big topic this year for the col- lision industry has been the continu- ing growth in OEM certification and the need for shops to understand the complexities of dif- ferent substrates and technology they have to work with on repairing the latest genera- tion of vehicles. Examples include structural holding and also welding, which you can read about beginning on page 20. Smooth process There’s also the question of insuring the repair process goes as smoothly as possible, and a good deal of that comes down to ensuring the right parts, products and equipment is readily available. Our cover story charts the introduction of Uni-Select’s FinishMaster brand to Canada, where it hopes to build on the considerable success already enjoyed south of the border in the U.S. FinishMaster has been able to build an enticing pur- chase proposition for collision shops, through its network of both corpor- ately owned and independent jobber locations and a service and support network that’s second to none. Although it sometimes seems that the challenges facing us continue to increase, whether its through vehicle complexity, cycle times and custom- er expectations, the flip side is that we’ve never had as many specialized tools and services at our disposal to help the job go smoother and more efficiently. There’s more choice than ever and although it requires careful re- search and selection, there’s an ideal solu- tion for just about every business out there. And, as I reflect back on another dy- namic year in the collision sector, it will be interesting to see how 2017 shapes up. One thing’s for certain: it won’t be dull. In the meantime, best wishes for the holiday season and we’ll see you in the New Year! Editor-in-Chief
[email protected] Getting the Job Done Having the right equipment is more critical than ever. PRESIDENT Jean-Luc Rousseau PUBLISHER Isabelle Courteau FOUNDER Rémy Rousseau EDITOR-IN-CHIEF Huw Evans EDITORIAL ASSISTANT Joanie Péloquin-Dumoulin CONTRIBUTING EDITORS Michel Beaunoyer, Shirley Brown, Krystyna Lagowski and John Morris GUEST EDITORS Steve Fletcher, Leanne Jefferies, John Norris, Rémy L. Rousseau Jason Reitz and Jack Rozint GRAPHIC DESIGNER Raquel Munoz and Diane Desvaux PRINTER SOLISCO COPY EDITOR Shirley Brown TRANSLATOR François Charron ACCOUNTING Esther Twells CIRCULATION MANAGER Nancy Belleville 514 289-0888 # 225
[email protected] MARKETING & PROJECT MANAGER Marie-Hélène Côté MARKETING & ADMINISTRATIVE ASSISTANT James Leonardo De Sà SALES DIRECTOR Dennis Fauteux SALES COORDINATOR Maxime Fournier 514 289-0888 # 243
[email protected] KEY ACCOUNT MANAGERS Leslie Campbell and Stéphanie Massé PUBLISHED BY 455 Notre-Dame East, Suite 311, Montreal, QC H2Y 1C9 PHONE 514 289-0888 / 1 877 989-0888 FAX 514 289-5151 EMAIL
[email protected] SUBSCRIPTION 1 year: 2 years: 3 years: $29.95 $49.95 $59.95 Collision Management Magazine is dedicated to serving the business interests and facilitating communications between the collision and insurance industries. It is published 6 times a year by Rousseau Communication, a member of AIA Canada and sponsor of CCIF. Material in Collision Management may be reproduced, provided the publisher is advised and proper credit is given. The publisher reserves the right to refuse any adver- tising and disclaims all responsibilities for claims or statements made by its advertisers or independent columnists. All facts, opinions and statements appearing within this publication are those of the writers and editors themselves, and are in no way to be construed as statements, positions or endorsements by Rousseau Automotive Communication. PRINTED IN CANADA ISSN 1923-9203 Publications Mail Agreement no. 40014105 FSC We’ve never had as many specialized tools and services at our disposal to help the job go smoother and more efficiently F-150 Rivet Gun System The Pro Spot PR-5 is designed to be the tool of today and tomorrow. The unique design allows for current attachments and adapters for various riveting applications. PR-5 Die Kit PR-5 Riveter PRR-CQ-120-80 PRR-CQ-55-85 PRR-CQ-240-120 (Optional) Comes With Self Contained Hard Plastic Case (Shown With Optional Blind Rivet Adapter) (Optional) PROSPOT.COM Toll Free (North America Only): (877) PRO SPOT E-Mail:
[email protected] Applications: • Self Piercing Rivets • Solid Rivets • Blind Rivets • Flow Form Rivets • Rivet Studs • Rivet Nuts Features: • Easy to Use • Non-Thermal Joining Process • Smart Trigger System • Magnetic Punches • Portable, Battery Operated CONNECT WITH US PURCHASE THE NEW PR-5 RIVET GUN SYSTEM, RECEIVE FREE ICAR RIVET BONDING COURSE TRAINING FOR 2 TECHS! PR-5 EXTENDED REACH ARMS $980 VALUE *PROMOTION RUNS FROM OCT. 1ST, 2016 - MAR. 31ST, 2017 6 Collision Management December 2016 ACROSS CANADA NEWS Mitchell Launches Parts Procurement Solution Mitchell has announced the launch of Mitchell Parts—a fully integrated parts procurement solution to be offered to all collision repair shops and their ex- isting suppliers. Powered by and created through a strategic alliance with uParts, an advanced cloud-based parts pro- curement company, Mitchell Parts is designed to connect collision repair shops with their suppliers to stream- line and automate the parts procure- ment process. Under the strategic alli- ance, the companies will deliver deep integration between the uParts platform and Mitchell’s UltraMate, Estimating, and Re- pairCenter solutions. From November 2016, Mitchell Parts Procurement will be made available by geogra- phy and at no additional fee for Mitchell repair facility custom- ers. More information about Mitchell Parts can be found at Mitchell.com/Parts. H.E. PHOTOS: MITCHELL, LINCOLN Mitchell has announced Mitchell Parts, a parts procurement solution designed to increase efficiencies in parts ordering for collision repairs. Lincoln Electric contracted with master builder and television personality Bryan Fuller, plus longtime educator and author Mark Prosser to team up to teach several seminars on welding and fabricating at Booth 24643 during the 2016 SEMA Show, Nov. 1-4, at the Las Vegas Convention Center. Together, the pair has gained prominence in the fab- ricating industry for their series of instructional videos (found on the Fuller Moto YouTube channel). During SEMA 2016, Fuller and Prosser tackled welding topics including: TIG vs. MIG: Which One is Right for You? Take the Mystery Out of Welding 4130 and Purging vs. Not Purg- ing Stainless: What You Don’t See May Be Hurting You. H.E. Fix Auto Calgary Peigan Joins Network Peter Polito, General Manager, Fix Auto Western Canada has announced that Fix Auto Calgary Peigan, owned by Andy Jeffs, has joined the network. Jeffs brings over 20 years of experience to the Fix Auto network, with five years as a shop owner. Jeffs says that joining Fix Auto was a sound decision that was made with the future of his business in mind. Jeffs says he prides himself on this custom- er focus, adding, “our shop is equipped with top-of-the-line tools in order to offer the best service possible. We’ve made many important upgrades to our shop, from brand new equip- ment, to new spray booths, new office furni- ture and bathroom upgrades. It is all part of our commitment to our clients.” H.E. Canadians Well Represented at ARA Convention Over 900 delegates and exhibitors descended upon the Baltimore Convention for the 73rd ARA Convention and Expo on the last weekend in October. Between loads of speakers—43 speakers in over 23 educational ses- sions plus a one-day technology summit—and an active Exhibit Hall with over a hundred vendors, auto recyclers of all shapes, sizes and global locations had something to benefit from. Canadian auto recyclers were out in force at the event and continue to play a pivotal role in the organization. Ed MacDonald from Maritime Auto Parts in Truro, N.S. is the second Past President; David Gold from Standard Auto Wreckers in Scarborough, Ont. is the first Vice President; Dalbert Livingstone from Island Auto Supply is the Ca- nadian Regional Director on the ARA Board; and plenty of Canadians are active in chairing and participating on ARA Committees. There is a newfound cooperation between the Automo- tive Recyclers of Canada (ARC) and the ARA as well, sharing certification protocols, research, and market intelligence. One of the themes of the ARA event was Family—auto re- cyclers are still overwhelmingly family-run businesses, and when Family gets together—great things happen. Steve Fletcher Mark Prosser and Bryan Fuller taught welding and fabrication during special Lincoln Electric classes at SEMA. Follow us on Twitter @autosphere en Lincoln Electric Offers ‘Celebrity’ Welding Classes at SEMA • Outstanding service and fast delivery • In-depth technical expertise • One-stop shopping for paint, autobody and mechanical 8 Collision Management December 2016 Coming Together Collision and mechanical shops are finding common ground.– John Morris PHOTO: LESLIE CAMPBELL I n the 1920s, as cars evolved from buggies with engines to motor- ized vehicles, the need for speed produced cars that could go much faster. And, when combined with the aspect of mass-production of ve- hicles like the Ford Model T, along with rough roads and inexperienced drivers, the risk of breakdowns and collisions grew exponentially. Some repair mechanics decided they were panel restorers and started to specialize in fixing and painting the repaired cars. Suddenly, collision re- pair was an industry. Today, the collision industry is very much a world of its own, but as we move into the future, the collision and mechanical repair specialists are find- ing each other once again. There are green shoots of an integrated indus- try poking through the repair land- scape as it continues to evolve with new brands, a variety of new vehicles and new ways of servicing them. Five into one CMD CARSTAR—an MSO in Calgary— acquired a mechanical shop, Ramsay Auto Select in July 2015. The company took the one-time muffler shop, gutted it and rebranded it as a full mechanical facility. According to Dave Stretz, Chief Operating Officer at CMD, the concept was to operate the shop both as a prof- itable area mechanical repair shop and also to use it as the in-house source for mechanical repairs required in the colli- sion restoration process. Like most collision facilities, mech- anical repairs that are primarily sus- pension related are done in-house but when it comes to major mechanical work, electronics and other specialized tasks the work is sub-contracted. Often an OEM is involved or a skilled mechan- ical shop. Experience has taught CMD that when the vehicle went to an outside mechanical shop, the cycle time became much harder to control. There’s also the 20 percent markup to contend with. More readily controlled By adding the six-bay facility to the mix, costs and scheduling are more read- ily controlled. Stretz indicates that the ratio of five collision shops feeding a single mechanical shop is very efficient, although he notes that a rough winter in Calgary and a high volume of repairs could create a need for more mechan- ical capacity. Last July, Fix Auto acquired three new brands: Speedy Auto Service, Minute Muffler and Brake, and Novus Glass. Daryll O’Keefe, General Manager of Fix Auto Ontario, explains that Steve Leal, the company’s President and CEO sees horizontal integration as the future of the service business. The three areas—collision, mechanic- al and auto glass—intersect naturally and that offers a breadth of oppor- tunities from geographic integration into a service mall, an interchange of services or more. The way cars are brought to market, like Tesla is doing by selling cars with no service facil- ity on premises, may well offer op- portunities for outside suppliers to undertake an increasing share of the world’s auto service needs. In the short term, the shops share a family relationship and may well find some synergies. That said, currently there are no plans to integrate their functions. In the future, however, there will likely be many opportunities to of- fer a pallet of auto services and Fix Auto wants to be in the forefront of that inte- gration. Like a century ago, it seems the panel beater and gearhead are coming together again. CMD CARSTAR has realized more opportunity by adding a mechanical repair business. HERE & NOW | INTEGRATION CANADIAN DISTRIBUTOR – MADE IN FRANCE Montreal: (514) 955-8870 Toll free: 1 (888) 837-6452 Ontario: (416) 577-2417
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[email protected] www.filcoinc.com www.gys.fr DISTRIBUÉ PAR : PPROUVÉ PAR ET EN COLLABORATION AVEC : GYSLINER COMBI 230 E PRO Ensemble de ébosselage complet ALU et ACIER M3 GYS AUTO MIG/ MAG 1/PH 3 connecteurs torche avec fils CuSi3 et CuAl8 RIVETEUSE GYSPRESS 8T ivets autoperçants unch rivets» et rivets «flow form» PROLINER PRO 230 Ensemble de débosselage complet ALU TRITON Console de puissance 230v/1ph/2cv Capacité de 6,600 lbs, peut être mobile MANTA Capacité de 13,300 lbs, 4.5 m long. Avec ou sans vérin à ciseaux, peut être mobile CONTACT EVOLUTION Système de mesure électronique - Fiable, précis, convivial, mobile, WI-FI, laptop inclus - Banque de données développée conjointement avec les fabricants de véhicules - Facilite les estimations plus précises pour les assurances Venez visiter notre centre de formation Filco complètement rénové! Septembre 2016 Distributeur canadien • Fabriqué en France 10 Collision Management December 2016 INDUSTRY TRENDS | INDEPENDENT SHOPS Weighing the Options With increasing consolidation, many collision repairers are asking themselves what the future looks like for their business. – Jack Rozint Jack Rozint is Vice President, Sales & Service, Repair, Auto Physical Damage Unit at Mitchell International. T oday, as a result of technology advance- ment and the increasing need for re- pairers to join OEM certified networks and share economies of scale, independent shops are exploring new ideas. Among the three most prevalent factors are: 1. Joining a franchise organization Franchise groups offer many benefits includ- ing improved purchasing power, technology & operational programs, and enhanced mar- keting capability. In addition, you become true business partners with many other top operators that can offer insight and ad- vice that can improve efficiency and profits. While it is often difficult for entrepreneurs to give up their independ- ence and to see another name on the sign, the reality is that as a fran- chisee you still own your business and still have substantial control. Before dismissing this option, consider that the successful collision repair facility of tomorrow is go- ing to deal with radically more complex vehicles, which require greater investments in tech- nology, training and equipment. As part of a franchise, you may be better able to meet these challenges and remain competitive and profitable. If the franchise route seems best for you— the next step is to choose the right one. There are several excellent organizations with different franchise models. Study each, do a cost/benefit analysis specific to you and your business, and make a decision. Then make it clear to your en- tire organization that you are fully committed and make the move—the sooner the better. 2. Sell your shop If you decide that you don’t see yourself oper- ating your business 3-5 years down the road, then the time to begin preparing is now. Any- one buying your business is going to base the price on at least three factors—the facility, the employees, and the volume of business, which is normally measured by EBITDA. First, take a look at your facility. Does it have curb appeal, are the customer areas clean and neat, and is the production area organized? If not, get to work and address these issues now. You’ll get some immediate benefits with your customers, and you’ll improve employee morale as a side benefit. Second, how is your human resource situation? Make sure you have competitive, but not excessive pay plans, written HR poli- cies, and that you’re in compliance with all ap- plicable laws and regulations. Training will pay benefits now, and when you sell. Third, business valuation is normally based on Earnings Before Interest, Taxes, Deprecia- tion, & Amortization—or EBITDA, so work with your accountant to learn how to maximize this number. Also—don’t forget to ask your accountant and/or lawyer about selling stock vs. assets and other con- siderations—the time to understand these issues is now, and not the day you get an offer to purchase. 3. Stay independent If you’ve considered the first two options and choose to remain independent, then it’s critic- al to prepare for the increased competitive environment that lies ahead. Create a busi- ness plan with a marketing plan that defines your unique value proposition to insurers, fleets, and consumers in your area—and be prepared to spend
