Investing in collision and body repair can reap big rewards over the longer term
“You have to be willing to make the commitment,” says Jim Donaldson, manager at Heffner Collision in Kitchener, Ont. “The business today is very competitive. If you’re not able to invest in new technology and equipment and especially in your staff, you probably shouldn’t be in the business.”
Donaldson knows all about how taking a proactive approach can reap substantial rewards, having been around the business since the 1970s, watching it change and evolve.
“More and more collision work is coming via Direct Repair (DRP). So if you want to stay in the game, you need to be able to work with insurance companies and go the extra mile in terms of efficiency and service, to get on the DRP list and get the business,” says Donaldson. “You simply can’t take an ‘us versus them’ mentality, because the insurance companies will take their business elsewhere, you’ll lose business and worst of all, you’ll have unhappy customers.”
Jim Donaldson, Manager at Heffner Collision, in Kitchener, Ont. has been in the trade since he was in his teens.
HIGHEST STANDARDS NEEDED
Sam Piercey, Vice President, General Manager at Budd’s Collision in Oakville, Ont., agrees. “It all goes back to Six Sigma, being able to do it, better, faster, cheaper.”
“Insurance companies want to work with those shops that can meet the demand, in terms of turnaround, getting the vehicles in, repaired and out, while making sure the work is done properly and the customer leaves happy. If you can consistently deliver, you’re going to get more business and you’re going to make money.”
Nevertheless, both he and Jim Donaldson caution that speed and quality aren’t the same thing. To achieve both in the collision industry it requires substantial investment.
TECHNOLOGY INVESTMENT
Donaldson says that given how the auto industry has evolved with changing vehicle manufacturing techniques and paint finishes, shops need to be able to repair today’s vehicles to the same standard as when they rolled off the assembly line.
“Gone are the days when you could hammer out a fender or straighten a bumper. Today, with composite materials, waterborne paints and precise tolerances and panel gaps, you need to have access to equipment, technology and training that will enable the shop to repair the vehicle to as good as new,” he says.
He points to a pair of state-of-the art Car-O-Liner straightening and measuring benches on which sit a rather sorry looking Toyota Highlander and Lexus RX SUVs — vehicles that in a matter of days will look like new. Equipment like this represents a big investment, even for the larger collision shops, but the end result is nearly always worth it.
“Car-O-Liner are pioneers in the industry,” says Donaldson. “Thanks to a cutting-edge computerized repair system, we can, through computer modeling, create how the vehicle looked prior to the accident, replicating the shape of the bodywork contours or bumper. It enables us to perform sheet metal repairs faster and also perform servicing work at the same time, which helps us increase workflow and get more vehicles repaired and out the door. These benches truly are some of the best out there.”
Budds’ Sam Piercey and Neil Thomas examine a Jaguar XJ undergoing repairs in the shop’s sealed aluminum repair room.
ADVANCED REPAIRS
Other state-of-the art equipment at Heffner includes spot welders that replicate factory joins via precisely measured heat, pressure and time for each weld, plus dual Garmat down draft spray booths, which have been modified to incorporate custom lifts — yet another aspect of a major investment designed to make the process smoother and more effective.
“It was something I discussed with dealer principal John Heffner,” says Donaldson. “We determined that it was worth it because it was not only time consuming but also a potential hazard to have the painters working on their knees. It required quite a bit of engineering to get to work but the result has been fantastic.”
Another innovation has been the installation of an alignment rack within the shop, so that once cars are repaired they can go straight on it to adjust and set the required camber, caster and toe, without having to be taken to another facility or even somewhere else on the Heffner dealer site.
“It’s just a huge benefit,” says Donaldson. “It means that when the car is finished, it is completed. Not only does it save us time, it also saves us aggravation because we control the process. The tracking can be set properly and when the customer shows up, they can drive the car straight out of the shop. It provides peace of mind for both them and us.”
TOP NOTCH FACILITY
Sam Piercey, who had just returned from Germany when we caught up with him, says investing in the latest technology and equipment is critical to running a successful collision shop. In fact, it’s due to such major investments over the years and solid support from Budds’ Group of family owned automotive stores, that the collision centre has emerged as one of the very best in the industry, not only in North America but also the world.
Driven by the need for constant improvement; Budds’ is embarking on a plan to upgrade its paint facilities once again. “They’ll be the first of their kind in North America,” Piercey says in reference to the new German manufactured Wolf booths the shop recently purchased.
He shows me the brochure. Impressive stuff. “We made the investment because we know that down the road they will help us save time.”
Once up and running, the new booths will enable Budds’ to paint four cars every hour and 15 minutes, which over the course of 10-12 hours adds up rather quickly. The new booths will require an additional 5,000 square feet of expansion, but having seen the benefits past expansions and investments in equipment have added, Piercey believes the end result will be worth it.
Further aiding the process of even greater speed and efficiency, while maintaining quality, are developments with suppliers BASF and 3M to which Budds’ has developed strong ties over the years. “We’re always working on how to improve the actual paint process,” Piercey says. “BASF is constantly improving, developing clearcoats that dry even faster and reducing pigments when it comes to colour mapping. Whereas you might have used up to 20 pigments in the past, today it is down to just seven.”
SAFETY AND ENVIRONMENT
Besides equipment, successful shops are also finding a need to deal with ever more environmental and safety regulations, as well as demands from insurers, which also means more paperwork and administrative tasks, particularly when it comes to Direct Repair work.
“There are a lot of demands today from major insurance companies and a lot more administrative issues to contend with than there used to be,” says Budd’s manager Neil Thomas. “We hired four additional staff to work in the front office, in order to keep up with the work orders and related paperwork. For every job that comes in you need to make sure there is an accurate and easily accessible database of information, especially if a potential issue arises. Documentation is so important.”
So is training, yet both Heffner Collision and Budds’ are finding that it’s proving a struggle to attract new blood into the industry. “A major problem,” says Piercey, “is that the government doesn’t invest enough in the trade.
Apprenticeship programs have been cut back and many trade schools are struggling to attract students. Today, the collision industry has really cleaned up its act. It’s a far cry from what it was years ago and for those that do come to the industry, it can prove demanding but also highly rewarding. It’s no longer a default trade. Today’s collision industry requires highly skilled individuals but we need to encourage young people to consider this field as a potential career.”
Blair Wooley started washing cars in high school. Today he’s head painter at Heffner’s state-of-the-art collision centre.
GOOD CAREER POTENTIAL
To get around the issue of staff shortages, Jim Donaldson has recruited high school students, getting them involved at an early age. Indeed, his head painter, Blair Woolner has been with Heffner Collision, since he started out washing and detailing cars. Now a certified technician and responsible for the entire paint side of the operation, Donaldson has seen him grow into a pivotal role within the collision centre and also the dealership.
“Blair is just one example,” he says. “If you can bring these kids in here and show them, it can be so worthwhile. We’ve currently got three apprentices working with us and they’re making excellent progress. I’ve seen it too often, when after three years, they’re still washing cars because the shop and the dealership thinks that training them costs too much money. It’s a view that’s very penny wise and pound foolish.”
Over at Budds’, Sam Piercey, sees that providing the tools, training and support is critical to making staff perform at their best. “A happy employee is a productive one,” he says, but in the 21st century, getting people to commit can be an issue, especially as earnings on the whole have remained fairly flat.
“Let’s say you’ve got a door rate of $55 per hour; from that the technician will earn, maybe $26-$30. Given the skills required to repair vehicles today, with computers, sensors and increasingly the use of lightweight materials like aluminum, it’s easy to look at other professions and say: “Why do this?”
And yet Piercey says to be really successful and thrive takes a long-term view. “You might make more as a plumber, but the skills you can learn in the collision trade can prove invaluable down the road. I started out as a body man, back when this was a dirty, dangerous business. I never imagined that I would be in the driving seat of one of the most advanced collision facilities in existence. I’m proof of the opportunities. Shops have to sell their services to potential hires but when you find the ones that get it, that are willing to learn, it can be very satisfying. ”
STIFF COMPETITION
As dealer affiliated collision centres, both Budds’ and Heffner face similar challenges, namely having to complete with multi-shop operators, which are spread across the country.
“MSOs have really grown to become a major force in this industry,” says Donaldson.
One competitive advantage he cites is being able to offer and honour a national warranty regardless of the make or model of vehicle repaired, even though dealer affiliated body shops deliver work to the same standard.
“Because we are a single location, we can’t advertise the fact, even though we’ve completed the work to the manufacturer’s standards,” he says. “If dealers and OE Manufacturers can work together as groups, then it’s possible we’ll be able to provide the same coverage as they do but there has to be a collective will to do so.”
However, dealer affiliated shops also have an advantage they can use, especially relating to the customer. “I’ve been in the body trade all my life,” Donaldson says, “and it was Toyota’s reputation for quality, for treating their customers right and also Heffner’s reputation in this community that brought me here. When a customer who drives a Toyota or Lexus comes in and they see the facility, they see we have factory-trained technicians and the latest in equipment and stand behind what we do.”
For most collision centre customers, the process of having the vehicle banged up and then waiting for it to be repaired can be incredibly stressful, so if shops are able to ease their worries and develop a relationship of trust it can prove hugely beneficial, especially over the longer term.
“I’ve seen it first hand on many occasions,” says Donaldson. “If they leave here happy and at ease and know that we stand behind our reputation, when the time comes, they’ll more than likely come here and visit the adjacent showroom to buy their next car, becoming a sales and service customer of the dealership”.
THE RISE IN PAINT PROTECTION
Although non-toxic, waterborne paints have presented challenges. Successful shops have been able to turn them into opportunities by investing in state-of-the art booths and spraying equipment.
Changes in the way cars are painted have led to some emerging trends at the collision and also retail level. Waterborne paints, which have been mandated by the Environmental Protection Agency in the U.S., required different primers and different application processes, since many modern vehicles use not only steel but also plastics and other composites for body parts.
Given the advancements in pigmentation and formulation as well as clearcoats, they tend to fade less. One downside, however, is they’re generally more prone to chipping than lacquers, enamels or traditional urethane paints.
As a result, both consumers and dealers are investing in paint protection products to maintain that showroom look on their vehicles and improve resale value come trade in time.
For dealers, paint protection can be a great way to bolster profits through the business office and improve customer satisfaction via the products and services they sell.
However, with any emerging and evolving technology, not all products are created equal. Avery Dennison says it is at the forefront of paint protection products and has developed high quality films that won’t yellow or fade.
For both dealers and customers, this represents a worthwhile investment. Recently, Canadian auto dealer spoke with AD’s Phil Novac, asking him a little about the product that’s making some waves in the industry.
“Our Paint Protection Film started out as a product designed for helicopter rotor blades and then it migrated to automobiles, initially high end cars. The reason why it became popular on exotics was that many of these vehicles have paint finishes applied by hand. Resale value is very important to many high-end vehicle owners and they discovered that with our film applied, the paint was much more effective at resisting stone chips and blemishes resulting from road debris.”
Starting out 15 years ago, PPF’s popularity has mushroomed and although still popular on luxury and exotic vehicles, it’s being applied more and more to regular passenger cars and light trucks.
The latest development is Nano Fusion technology, designed to eliminate the yellowing process common on some of these films as they age.
“We discovered the yellowing is actually a result of the manufacturing process,” says Novac. “We’ve developed a process in which Nano particles actually penetrate the urethane layer of the film instead of just sitting on top of it. The result is a product that won’t peel, crack or bubble for as long as you own the car.”
In fact Avery Dennison backs it up with a lifetime warranty, something Calgary-based master distributor Victory Vinyls loves about the product.
“I’m finding it hard to keep up with demand at times,” says Victory Vinyls president Dennis Dressler. “Avery Dennison has developed a top quality product, which they stand behind and both the dealers and shops we supply to have had nothing but good things to say about it. There’s no question it has helped us grow our business and reputation.”
For more information visit: www.nano-fusion.net
