ARC360 introduces inaugural Breakfast Think Tank

ARC360’s first online Breakfast Think Tank took place recently, when more than 20 leading figures from the across the vehicle incident repair sector met to share their views on the year ahead.

The session featured contributions from a panel of experts from vehicle repair, vehicle manufacturing, insurance, training and mobility.

The Think Tank invited the panel to share their thoughts on what lies ahead in 2024, and the overwhelming immediate concern was the continued challenge around people and skills across the sector.

With the average age of technicians in their late 40s, it was suggested that the industry had to ‘get serious’ about raising awareness to younger people and other potential candidates outside of the sector of the fulfilling and varied career paths available within automotive repair.

Attracting the next generation of talent has to be a priority for all stakeholders, it was agreed, with a far more collaborative and targeted approach instead of individual businesses operating in siloes.

“We’re not bringing people in from outside the industry,” said one panellist. “We’re all vying for the same candidates and just taking skills off each other. Every sector is facing a similar challenge, but we need to start competing with other industries rather than each other.”

It was also suggested that greater support for independents was needed, with some reluctant to take on apprentices due to limited time, financial resource and unclear futures ie exit Vs investment. There is also a ‘fear’ among many that their efforts will be wasted with apprentices either dropping out or taking their skills to a higher-paying competitor.

However, a lack of new talent entering the sector is only one part of the puzzle. There is the additional and arguably more immediate challenge in meeting existing demands and productivity levels with a limited pool of skilled resource.

“Apprenticeships are obviously crucial going forward,” said one panellist, “but they won’t address the skills challenges we face now and in the next two or three years.”

The next Breakfast Think Tank will take place in March and continue its progressive discussions with people and skills as an ongoing ‘anchor’.

ARC360 is supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: Gemini ARC, Repairify, Prasco; and Associate Partners: Thatcham Research and Trend Tracker.

To find out more about ILC’s New Generation in Claims event – closely aligned to the discussion during the inaugural ARC360 Think Tank – click here or to find out how to become an ILC New Generation Claims Ambassador email liane@iloveclaims.com

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Steer Group celebrates apprentice skills

Steer Group hosted its final repair and refinishing Apprentice Skills competition last week at EMTEC Colleges and 3M.

Apprentices took part in the competition ahead of their end-point assessments and in preparation for potentially taking part in the IMI World Skills. 

The Apprentice Skills competition was introduced to raise standards, boost confidence, hone problem-solving abilities, and enhance planning and time management skills.

Judges included Andy Geary, LKQ, Chris Colton, 3M, Karl Smith, Stanners Equipment, Jim Swann, Steer Automotive Group, Kieron Woolgar, Thatcham Research, Michael Massey, 3M, Paris Asquith, Steer Automotive Group, Robert Smith, Axalta, and Satpal Thamu, Emtec College, with the overall winner to be announced next month.

Head of Academy and Organisation Development Steve Hoe said, “Everyone involved with the competition noted the apprentices’ outstanding attitudes and their demonstration of high-level skills, making the scoring incredibly tight. All our apprentices gained valuable insights, with experienced judges providing feedback after every task. We were very pleased with how it went and can’t wait to do it all over again.”

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Join the team for Plunky’s All Stars’ final match

The last ever Plunky’s All Stars charity football match will kick-off at the Football Development Centre in Norwich at 6.30pm on 28 June.

The match is being held to raise awareness around mental health after fireman Carl Mills took his own life two years ago.

The chosen charities this year are the East Anglian Air Ambulance (Just Giving) , the Fire Fighters Charity (Just Giving), and Norfolk & Waveney Mind (Just Giving), which provides support to anyone struggling with mental health and wellbeing issues through its regional centres, talking therapies, residential programmes, social groups, specialist programmes and mental health training.

The match is being organised by Steve Plunkett, who set the charity ball rolling a decade ago with the first ever Plunky’s All Stars game. In that time his initiative has raised more than £93,000 for a range of worthy charities.

The target this year is to add another £25,000 to the total, with anyone able to donate prizes for the raffle and auction or interested in sponsoring opportunities invited to contact Steve at stephen.plunkett@eu.lotuscars.com.

A place in the team is also still available for any would-be goalkeepers.

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ABI to publish AI governance guide

The Association of British Insurers (ABI) is working with experts to produce a guide to responsible AI innovation.

Focused on consumer outcomes, the first sector-specific guide will set out how insurers and those in the long-term savings industry can work within the UK government’s five principles around accountability, transparency, fairness, safety, contestability and redress.

The guide, which will be developed by the ABI’s AI Working Group, which includes experts across actuarial, data science, data protection, legal, regulation and compliance, will also support businesses in maximising the benefits of AI, including improved affordability, accessibility, and availability, while also mitigating against the risks of discrimination, bias and exclusion of consumers.

Its aim will be to help businesses develop a responsible AI strategy, be inclusive in their use of AI, use the technology ethically, and understand how to control AI rather than being controlled by it.

Charlotte Clark, Director of Regulation, Association of British Insurers, said: “Artificial intelligence presents new opportunities and risks. By setting out practical resources, questions our industry needs to consider, and regulatory requirements, we hope this guide will support firms in starting conversations about AI and get a clearer understanding of what the responsible use of AI looks like.

“We’re grateful to our members for sharing their experiences and expertise, which has been at the heart of the guide throughout its development. Close collaboration between business, government and regulators is key to being able to adapt and respond to this evolving technology and we look forward to continuing to work together as the AI landscape progresses.”

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ABI publishes plan to tackle insurance costs

The Association of British Insurers has published a 10-step roadmap intended to tackle rising insurance costs for drivers.

This comes after the EY reported that for every £1 paid in premiums last year, insurers incurred £1.14 in claims and expenses.

As part of the 10-step roadmap, the ABI will focus on greater transparency around insurance costs to support better customer decision-making. It will also try to mitigate the rising costs of vehicle thefts by working with the police to aid in the recovery of stolen vehicles.

The plan also calls for greater action around insurance fraud, improving road safety and infrastructure, and providing additional support for new drivers.

Further, the ABI will seek to reduce the impact of the Personal Injury Discount Rate (PIDR), while continuing with reforms to reform whiplash claims, advocating safety-focused vehicle technology, and continue to lobby for lower Insurance Premium Tax (IPT).

In addition, it aims to support the vehicle repair sector by working with government, manufacturers and repairers to create more volume and flexibility in the sector.

Mervyn Skeet, Director of General Insurance Policy said, We know that insurance costs are putting strain on household finances, so we’ve been working hard to find solutions. Some of these actions we can do quickly, others will require time or assistance from the regulator or government.

“Regardless, we will continue to do what we can under our new strategy to help consumers access the products that are integral to financial wellbeing and play a key role in the nation’s financial resilience.”

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ARC360 News Round-Up – Friday 23 February 2024

Bodyshop briefs

  • Porters Bodyshop has successfully passed its Volkswagen Audi Group audit with a score of 98%.
  • L&I Eaton ARC has acquired Brooklands Autobody Lincoln South.
  • D Gawthorpe ACR has been appointed to the Ford Certified Collision Network.
  • The Pennings Group recently hosted colleagues from Collision Experts Ireland, demonstrating its industry-leading technology and solutions.
  • Fix Auto Lichfield owner Andy Johnson will take part in the 3,000km Panda Raid charity drive across the Moroccan desert to raise funds for Carter The Brave, which has been set up to raise money for the Oncology Ward, Clinic and Research department at Birmingham’s Children’s Hospital.

Industry News

ARC360 introduces inaugural Breakfast Think Tank

ARC360’s first online Breakfast Think Tank took place this week, when more than 20 leading figures from the across the vehicle incident repair sector met to share their views on the year ahead.

The session featured contributions from a panel of experts from vehicle repair, vehicle manufacturing, insurance, training and mobility.

Monthly Key Metrics

Trend Tracker’s latest monthly update has revealed that repair cost increases are still higher than inflation, but the rate of increase has slowed to six per cent year-on-year.

Cycle times are reducing although lead times are longer than this time last year, while repair volumes in January were four per cent higher than January 2023.

BASF signs sustainability partnership with INEOS

BASF’s Coatings Division has signed a strategic agreement with INEOS Automotive to develop sustainable vehicle body repair and paint refinish solutions. The partnership also incorporates product supply, shared expertise and training.

New data sees EV myths go up in smoke

Salary sacrifice specialist Tusker has analysed data from its fleet of more than 30,000 electric vehicles and found that they are 20 times less likely than petrol or diesel cars to catch fire.

EV training on the charge

New analysis from the IMI has found that 22% of technicians, or 55,000, are now EV qualified.

This is higher than anticipated, and the IMI has now revised its projection of when the industry will experience a skills gap in this area from 2029 to 2032.

Inclusion starts at the top

Business leaders need to set the standard to create a culture of inclusivity within their companies.

According to Rachel Clift, Health and Wellbeing Director at automotive charity Ben, those at the top of the organisation play a critical role in developing a workforce that is engaged, diverse and inclusive.

Industry interview: Adrian Furness, Managing Director, Motor Repair, Activate Group

Adrian Furness has a unique perspective on the challenges facing automotive claims, having worked on both sides of the sector.

Here, he shares his views on the key issues impacting the industry and explains how Activate Group helps to overcome them through its expanding portfolio of services.

GSF Car Parts attracting industry acolytes

GSF Car Parts, one of the UKs leading suppliers of car parts to the independent aftermarket, is establishing a notable leadership team with some of the industry’s most prominent names coming on board.

Founder and Non-Executive Chairman Sukhpal Singh Ahluwalia is joined by CEO Steve Horne, Alistair Preston, Paul Wright, Lee Forty, David Bevan, Chris Barella, Martin Gray, Bill Stimson and Adam White.

Best face forward

BASF subsidiary TrinamiX, a pioneer in biometric face authentication, has launched its next generation of Face Authentication. Developed alongside Continental, the solution enhances vehicle security by offering both external and internal face recognition.

IMI calls for urgent skills focus

The Institute of the Motor Industry has urged the Chancellor Jeremy Hunt to focus on electric vehicle skills training in his Spring Budget.

It says that consumer incentives are not enough to secure a successful EV transition.

PartsXCHANGE reaches 600 milestone

NBRA supplier member PartsXCHANGE has achieved the significant milestone of serving 600 bodyshop users.  

The company supplies preowned genuine unused and used parts to repairers across the UK.

Plunkys All Stars 2024

The final Plunky’s All Stars charity football match will take place at Norfolk FA’s Football and Development Centre, Bowthorpe Park in Norwich, on 28 June.

The match is fundraising for three charities: Norfolk and Waveney Mind, the East Anglian Air Ambulance and The Fire Fighters Charity.

To donate or find out more, please email stephen.plunkett@eu.lotuscars.com

HEVRA adds Dacia to portfolio

HEVRA has added Dacia to its portfolio of more than 40 supported electric and hybrid vehicle brands.

The company’s database now offers technicians the latest repair and maintenance information across a range of 361 models.

Lloyds sets £450m aside for FCA investigation

Banking giant Lloyds has set aside £450m to cover the potential cost of an FCA investigation into car finance deals.

The FCA launched an investigation last month into whether car buyers overpaid as a result of high interest rates, which could have been set to raise commissions for brokers.

Employers obligated to manage the menopause

New regulations from the Equality and Human Rights Commission means employers are now legally obligated to support colleagues going through the menopause.

The help organisations meet their obligations, automotive charity Ben offers four different training courses aimed at supporting both employers and employees.

NVIDIA develops the ‘simulated’ world

NVIDIA has unveiled Omniverse, which used AI and digital technology to enable its automotive partners to ‘build’ factories and ‘manufacture’ new vehicles in simulation before any physical development begins.

This enables them to test efficiencies and validate new solutions such as ADAS.

VM news

Stellantis to begin EV production in Luton

Stellantis will manufacture all-electric vans at its Luton site from the middle of next year. It will produce the Vauxhall Vivaro Electric, Peugeot E-Expert, Citroën ë-Dispatch and Fiat E-Scudo, becoming the second Stellantis UK site producing EVs after Ellesmere Port.

Volkswagen and Mahindra enhance EV agreement

Volkswagen Group has signed a supply agreement on components of its MEB for Mahindra’s purpose-built electric platform INGLO.

The deal, which also includes the supply of electric parts, underpins the two companies e-mobility collaboration.

Ford unveils new propulsion centre

Ford has unveiled its new £24m Propulsion Development Laboratory at its Essex-based UK headquarters. 

Situated at the Dunton Campus’ research and development centre, the site comprises eight vehicle-size rooms capable of testing electric power units and propulsion systems

Porsche adds E-Hybrid variants

Porsche is expanding its Panamera model range with the 4 E-Hybrid and 4S E-Hybrid variants, offering 59 miles electric range.

Volvo standardises EV names

Volvo Cars is renaming and standardising its fully electric cars. The XC40 Recharge and C40 Recharge models are renamed to EX40 and EC40 respectively to align with its other models, the EX30, EX90 and EM90.

People

  • A1 ADAS Solutions has appointed Matt Hume as its UK sales manager.
  • Autotech Group has appointed William Charsley and Alana Fuller as Trainee Recruitment Consultants. Meanwhile, Darren Dowling has joined as Client Services Director, Declan Gleghorn has been appointed Marketing Executive, and Colin Hankey has been named Business Relationship Manager. Other appointments include Chris Haber, Automotive Technical Trainer, Natalie Hodgson, Marketing Director, Finn Molloy, Specialist Headhunter, Pavithra Shankar, Business Data Analyst, Barry Williams, Business Relationship Director, and Ivan Zabolotny, Admin and Sales Apprentice.

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BASF signs sustainability partnership with INEOS 

BASF’s Coatings Division has signed a strategic agreement with INEOS Automotive to develop sustainable vehicle body repair and paint refinish solutions.

The partnership also incorporates product supply, shared expertise and training. 

Chris Titmarsh, Senior Vice President, Global BASF Automotive Refinish Coatings Solutions, said, “There has never been a more exciting time to be in the automotive industry and we are delighted to have the opportunity to broaden our engagement with INEOS Automotive. With our highly innovative portfolio of solutions now setting the industry standard, we look forward to aligning and complementing INEOS’ vision with our own strategic principles to drive a new, strong, and rewarding partnership.”

Steve Graham, Global Head of Aftersales, INEOS Automotive, added, “We are very happy to partner with BASF to develop a world-class sustainable paint programme in the next few years which follows the highest quality standards in paint-work repairs for premium vehicles. With BASF’s technical support and management experience in the latest bodyshop standards, the INEOS Automotive network can now rely on a partner that shares our commitment to excellence in customer service.”

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Industry interview: Adrian Furness, Managing Director, Motor Repair, Activate Group

Adrian Furness has a unique perspective on the challenges facing automotive claims, having worked on both sides of the sector.

Here, he shares his views on the key issues impacting the industry and explains how Activate Group helps to overcome them through its expanding portfolio of services.

Tell us about your business.

I’ve recently joined Activate Group, an accident management specialist that handles hundreds of thousands of claims every year. We support fleets through sopp+sopp, and handle insurance claims through Motor Repair Network.

We have our own chain of repair centres – Activate Accident Repair – that works alongside an approved nationwide repair network. We also have a specialist parts division called Activate Parts.

I’ve joined the business at a very exciting time because we recently announced a new investment deal with a private equity firm, Elysian Capital. This gives us the opportunity to accelerate our growth strategy so we can really be a transformational leader in the industry.

What are the challenges are facing your business right now, and how are you working to overcome them?

Since joining Activate Group, I’ve made it a priority to spend time with insurers and MGAs to understand more about their challenges, and how we can support them. Activate Group has a lot to offer in a very competitive market; my priority is to make the best use of our core capabilities to solve problems for our partners.

In the wider industry, repair capacity has been a challenge, which is why we’ve invested in our own Activate Accident Repair centres. We have nine sites now, with another set to open in March.

The sites are in areas where demand is highest and complement the footprint of our existing repair network. They’re purpose-built and equipped with the very best technology, giving us additional control over capacity so we can deliver for our customers.

Parts supply has also been a big challenge for the industry. It’s starting to ease, but it’s still far more of a challenge than it was four or five years ago.

Our parts supply division, Activate Parts, is in a unique position to support customers with parts sourcing, data, and strategy. As an ex-insurer, my eyes lit up when I heard Activate Group had in-house parts capability. It’s an area of the business with real growth potential.

What’s the best piece of advice you’ve ever received?

“Don’t change who you are, just be the best version of you.”

It can be tempting to try to emulate other successful leaders, or present a false image to impress other people. It sounds a bit corny, but the best piece of advice I’ve ever had is to be yourself. When you’re representing a business, you want to build trust. You can only do that by being open and honest – people can tell if you’re not being yourself.

In the claims industry I’ve found that building business relationships is particularly important for long-term success, and I think trust is at the heart of that.

What would be your prediction for the industry in the next year?

Some of the challenges I’ve already mentioned are easing, but I don’t expect them to go away completely. Repair capacity is coming back into the market, partly thanks to significant investment from companies like ours. There is still a shortage of skilled technicians, and as an industry we must maintain our commitment to apprenticeships.

We’re also looking at other solutions, including bringing in skilled overseas talent to ensure we have the right capability in place to support our customers.

Consumer Duty will also have a significant impact on the insurance industry over the next year.

Market forces are pushing up costs, and insurance premiums are increasing as a result. In general, policyholders aren’t always aware of these industry-specific challenges, so it’s down to insurers and their supply partners to demonstrate value for money.

We’ll support our customers in this by delivering an excellent claims service, with quick and efficient repairs and great communication throughout.

How would you like to see the insurance industry change by the time you retire – what is next for your business?

I’d like to see us build greater trust with our policyholders, by placing the customer at the forefront of our decisions. When we develop technology, let’s do it with the customer in mind. When we make investment decisions, let’s consider how it benefits our clients.

We’ve talked about this for a long time as an industry, but in reality it has often been deprioritised.

I firmly believe that delivering great service leads to profitability, and I have high hopes that the new consumer duty regulations will have a positive long-term impact on our industry.

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Inclusion starts at the top

Business leaders need to set the standard to create a culture of inclusivity within their companies.

According to Rachel Clift, Health and Wellbeing Director at automotive charity Ben, those at the top of the organisation play a critical role in developing a workforce that is engaged, diverse and inclusive.

She said, “Like all workplace initiatives, engagement at a senior level is paramount. Senior leaders should understand and be able to define what being inclusive means and live by this day to day. Without this, developing an inclusive workplace just won’t happen.”

She also encouraged businesses to embrace diversity when it comes to individual characteristics, values, beliefs, experience, backgrounds, preferences, and behaviours, and to constantly focus on ‘employee experience’ to enhance engagement and foster a sense of belonging and community.

Rachel said, “The employee experience also includes encouraging openness; welcoming and pro-actively seeking people’s thoughts, feedback and ideas; helping them build personal skills or introducing the right forums for those who may not be able to do this, to really enable a contribution by all.”

She concluded, “It’s key to make inclusion an intentional habit for everyone, meaning that employees are reminded of this on a frequent basis and it becomes part of the organisation’s DNA.”

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Monthly Key Metrics – February 2024

Insight & commentary provided by Paul Sell, Director, Trend Tracker

As these headline metric show, keeping informed about how the vehicle repair market is evolving remains critical.

Throughout 2023 we saw rapid and significant increases in repair costs – largely driven by inflation (particularly energy costs) – which led to large scale increases in motor insurance premiums (Confused.com claim 58% increase in last year).

Keeping informed on key metrics became and remains important.

Repair costs (eg labour, paint, parts combined) continue to climb higher than the current rate of annual inflation (CPI 4.2%) but have slowed from the double figure increases seen in 2023 to a six per cent increase year-on-year currently. This was consistent in December and January suggesting this is starting to find a new level. Within this, the largest increase year-on-year was in labour – influenced by sharp rising energy costs.

Cycle time has started to reduce, which seems to be largely due to key-to-key (K2K) which has fallen. Lead times are longer than this time last year. This suggests the ‘new normal’ method of collecting images and information prior to bringing the vehicle in and pre-ordering parts to ensure everything is in place to reduce K2K/off-road time, has created greater bodyshop efficiencies whilst customers might need to wait a little longer for their vehicle to be repaired.

Finally, repair volumes bounced back in January after a quiet (short) December, showing a four percent increase Vs the same period in 2023. This brings the repair volumes almost in line with those seen prior to the covid pandemic.

For further details on these metrics, as well as economic factors, vehicle values and sales, salvage values and green parts penetration click here.

ARC360-Trendtracker-Feb24

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