Raw material prices surge for paint manufacturers

The British Coatings Federation’s (BCF) latest statistics confirm further sharp increases in raw material prices for paint and ink manufacturers.

Higher prices for a range of critical solvents are just one area of concern for paint manufacturers with increased costs for resins, some pigments, extenders, and packaging also causing major problems for manufacturers.

The impact of the price increases differs across the coatings industry due to the mix of raw material types and their use in each sector. On a weighted average basis, BCF estimates raw material prices for paints and coatings to have increased by 15-35% in the last year.

The Federation expects current availability issues to continue throughout the rest of 2021.

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NBRA launches Repair Industry Requirements (RIR) for ADAS

In response to the Insurance Industry Requirements (IIR) for ADAS introduced by Thatcham Research, the National Body Repair Association (NBRA) has launched its own Repair Industry Requirements (RIR).

As a result of feedback from a survey, the association said it has created the RIR to support the IIR as best practice and setting out repairer charges.

“With vehicle technology advancing at a fast pace, it is essential that the bodyshop industry ensures that its repairs are to the required standard and specification”, said Chris Weeks, Director of the NBRA.

He continued, “The RIR includes a schedule of costs that will ensure bodyshops can charge out a fair cost for placing the vehicle back to vehicle manufacturer specification, along with the time allocated to triage the vehicle and audit trail the safety critical ADAS features, functionality as requested by the IIR.

“If you have implemented all the requirements to be IIR compliant, the NBRA advises to use the schedule of costs that will both aid the repairer and the work provider in a transparent manner.”

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News round-up: week ending Friday 9 July 2021

Register now…

The ARC360 on demand Supply Chain Special (1.30pm Wednesday 14 July) takes a closer look at what is happening across the supply chain right now and provides an in-depth insight into what it might mean for the claims sector.

Featuring: • Paul Sell, Associate Director, Trend Tracker • Kelvyn Waugh, MD, Prasco UK • Richard Steer, CEO, Steer Automotive • Jeff Mack, National Account Manager, NWVA • Mike Partridge, Paint & Body Business Manager, VWG UK

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CAPS reports big leap in claims exchanges

CAPS has reported a big leap in unique claims exchange volumes with a 13% month-on-month increase from May to June 2021.

The data highlights how June saw a return of claims volumes to 82% of pre-pandemic levels, increasing from 69% in May. Supply chain transmissions also rose by 14% month-on-month, reaching 87% in June compared to 73% in May.

Great British Motor Claims Survey launched

ILC and ARC360 have teamed up to launch the 2021 issue of The Great British Motor Claims Survey.

Support by Trend Tracker the survey will provide a snapshot of current sentiment from across the sector on a host of topical issues.

COVID-19 pandemic is and could potentially impact on the UK’s incident repair sector moving

Industry Leader Interview: Simon Powell, Client Director, Innovation Group

Here, ILC – parent company to ARC360 – catches up with Corporate Partner Innovation Group’s Client Director, Simon Powell to talk challenges and solutions; learnings; the benefits of hindsight; and predictions for the future.

AW rolls out Thatcham methods and support

In a reinvigorated relationship, AW Repair Group has chosen Thatcham Research as its preferred supplier of choice for methods repair data and technical support.

Following a short trial, AW has returned to the Thatcham Research ‘escribe’ platform, an online repair methods solution designed to help the industry return crash damaged vehicles safely and efficiently to pre-accident condition.

Sherwin Williams partners with Mercedes-EQ Formula E Team

Sherwin Williams has partnered with the Mercedes-EQ Formula E Team.

Both organisations share the objectives of driving technical innovations in the automotive industry, bringing people, products and platforms together and working towards a better, more sustainable and more inclusive future around the world.

Survey set to reveal EV readiness

ARC360 has once again teamed up with Trend Tracker and NBRA to survey the sector about its readiness for electric vehicles (EVs).

The survey aims to reveal just how the industry is gearing up to manage the rapidly increasing electrification of the UK car parc.

Click here to complete the survey.

Redde Northgate Board confident of repair turnaround

The Board of Redde Northgate Plc are confident the integration of FMG RS, following the acquisition of Nationwide on 4 September 2020, will be earnings enhancing in FY2022 following a loss-making initial period.

In its preliminary audited results for the 12 months ended 30 April 2021 the business reported the integration of FMG RS ‘progressed well in the second half of the year, including the appointment of a new management team’.

Registrations rise but hampered by supply

New car registrations in June grew 28.0% year-on-year to 186,128, according to the Society of Motor Manufacturers and Traders (SMMT)’s latest figures.

Compared with the previous decade average, however, monthly registrations were down -16.4%, while total registrations for Q2 2021 fell short of industry expectations by around 9,000 units partly as the ongoing global semiconductor shortage acted as a limiting factor on supply. As a result, overall registrations for the first half of the year are down -26.8%.

Meanwhile, the light commercial vehicle (LCV) market saw 34,363 vans registered in the month, down -13.9% on 2019 meaning a shortfall of some 5,566 units as supply shortages affected production volumes and caused delays in the market.

Kangoo and Mokka receive four stars

The latest two cars to be tested by Euro NCAP – Renault Kangoo and the Vauxhall Mokka – achieved strong results across all categories in impact and crash avoidance testing, resulting in four-star rankings for both.

Matthew Avery, Director of Research, Thatcham Research comments: “These are family friendly cars, so it is really positive to see that young passengers are well protected.”

However, both vehicles fell short of the maximum five-star rating, in part due to performance in lateral impact testing.

Allianz invests in used car platform

Allianz X, the digital investment unit of the Allianz Group, has invested in Mobility Trader Holding GmbH, the parent company of used car platform – heycar.

Existing investors include Volkswagen, Volkswagen Financial Services, and Daimler Mobility.

Allianz Partners will become the insurance partner of heycar for the next five years in all existing and future markets. The cooperation will extend the heycar platform with Allianz insurance products and services by seamlessly integrating them into the digital customer journey.

IFED arrests 7 in ‘ghost broking’ crackdown

The City of London Police’s Insurance Fraud Enforcement Department (IFED) executed 10 warrants in a week as part of a crackdown on ‘ghost broking’ across the country, resulting in seven arrests.

The arrests formed part of a week of action led by officers from IFED, a specialist police unit dedicated to tackling insurance fraud which is hosted by the City of London Police.

Officers were deployed across 11 operations in London, Essex, West Yorkshire, Bristol, West Midlands, Derbyshire and Wales from Monday 28 June to Friday 2 July 2021.

ARS appoints ACIS

Automotive Repair Systems (ARS) has appointed ACIS Ltd to be sole supplier of its paint refinish products to serve its mobile repairers effectively. 

Phil Howlett, operations director of ARS, said, “As we continue to expand our operation with new vans out on the road to service our customers successfully, we’re confident the supply arrangement with ACIS will add considerable value to our organisation.”

DM Keith makes moves

DM Keith Ltd has increased its representation across Yorkshire with the acquisition of Ringways Motor Group.

Family owned, DM Keith now represents six brands, with 13 showrooms and two accident repair centres – DM Keith Leeds and Ringways Leeds – across 10 Yorkshire and Lincolnshire locations.

The business has also joined the Retail Automotive Alliance (RAA) as a shareholder expanding the RAA UK coverage through the 27 member businesses. The RAA has a turnover of £3.47bn through more than 200 sales outlets.

Axalta set to acquire UPol

Axalta Coating Systems is set to acquire U-Pol Holdings Ltd from Graphite Capital Management LLP and other holders for £428m.

Based in the UK, U-POL manufactures repair and refinish products for automotive refinish and aftermarket protective applications including fillers, coatings, aerosols, adhesives, and paint related products.

U-POL’s manufacturing plant and R&D lab is in Wellingborough, England.

Listen up…

In this episode of the ARC360 podcast we have the pleasure of catching up with Volkswagen Group UK bodyshop development manager, Franco Iannotta who shares with us how his love of cars and a passion for knowing how things work got him started in the automotive sector. He also mentions his passion for F1 and Astro physics.

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Industry Leader Interview: Simon Powell, Client Director, Innovation Group

Here, ILC – parent company to ARC360 – catches up with Corporate Partner Innovation Group’s Client Director, Simon Powell to talk challenges and solutions; learnings; the benefits of hindsight; and predictions for the future.

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

As lockdown restrictions have begun to ease and with no further restrictions on the horizon, our claims volumes have increased which is great to see and we have begun re-opening our offices and planning a staged return for many of our employees.

As many of you will know, trying to accurately forecast incoming claim volumes isn’t always easy, and predicting how the rest of 2021 will look has been difficult. To manage this, we have been and continue to work closer with our clients building stronger relationships remotely over Teams, which I must say has been such a positive outcome of the National Lockdown. I don’t think I have ever used Teams as much as I have in the last 18 months and I honestly believe this is a new way of working and will be part of the new norm. Having more of a regular dialogue with our clients has allowed us to share best practice and market knowledge, whilst also giving both us and them real insight into books of business and performance. That said, Teams will never replace the benefits of meeting face to face and it is not feasible for project or strategic meetings.

The re-opening of our offices is another huge step in the right direction for 2021 and we are so excited to start welcoming back employees! Getting the offices fit for purpose after the lockdown, with all of the COVID19 procedures and health and safety in place has been a real challenge and I would like to say a huge thank you to everyone who has been involved and spent their time cleaning and getting the correct restrictions in place.

Work ethics and preferred environment of working has changed over the last 15 months. We have to appreciate that we have employees that enjoy working from home and productivity has not dipped and then on the other hand we have employees who are desperate to be back in an office environment and around their peers.  

What has been your biggest business learning from the coronavirus pandemic?

This is a very easy question for me to answer. It is simply our people and how fantastic they have all been throughout this extremely difficult period. Our employees have been so accommodating, understanding and flexible during the lockdown and I just want to say a massive thank you to each and every one of them.

As a business we have been able to learn and understand our people more, which I think is fantastic. Again, Teams has allowed us to stay in frequent contact with people and has almost increased the interaction which I think is a huge benefit for us. We have also learnt so much more about the dynamics of our work force and the need for a work / life balance and how flexible as a business we can be to accommodate our people and their individual needs.

Remote working has also had huge benefits for us and enabled us to expand our geographical reach for talent. As a business we always want the best people and we are no longer restricted when it comes to appointing new hires as we are more flexible as a business to cater for the needs of our people.

I think Technology must be mentioned here. It has been a massive enabler for Innovation Group over the last 15 months. As a business, like many others, we were forced to adapt and change our way of working almost overnight. We have learnt so much over this period and I am excited for what is to come in regard to our technology advances. The new way of working is powered so much by our technology and without this, and our incredible tech team, we would not have been able to continue performing and servicing our clients in the way that we have.

As we go to a ‘new normal’ what are you looking forward to returning to and what practices will you keep?

I used to spend on average 3 days/nights a week away from home and my family. I would be travelling up and down the motorway, between offices or on the train to London. Working from home for the last 15 months has been a real shock to the system, and my families!  I have learnt so much about myself though, as well as our business and our people in that time. Before the pandemic, if someone had said to me that I would need to work from home full time and spend my days sat on back to back Teams calls, I probably would have laughed! That said, this is now the ‘new normal’ for most businesses and will continue to be. Utilising technology allows me to have 5/6 client meetings per day, instead of the 1 that I used to be able to fit in. This is providing us with a perfect balance of old and new which creates our new way of working.

The technology will allow me to continue to stay in close contact with clients and share best practices. We are all speaking on a more regular basis now and I think this needs to stay. As a business, and I am sure others will be in agreement here, we have proved the concept of homeworking and technology works and suits our business requirements and also allows us as a business to be as effective and efficient as possible.

If you could go back to the beginning of 2020, what piece of advice would you give to yourself?

Firstly, upgrade your WIFI! My WIFI was definitely not ready for that amount of use, it was a struggle at the beginning of the pandemic especially when on calls.

Secondly, take out shares in Amazon! I’m now on first name terms with my Amazon delivery driver, I couldn’t have survived the first lockdown without them!

In all honesty, I admit that coping with lockdown has been really tough at times. Things I would remind myself, is to always remain calm, be open with your team and provide them with the flexibility they need, as long as clear objectives are set and deadlines are delivered, the new norm no longer requires a “9-5” culture or micromanaging.

What would be your prediction for the industry in 2021?

I think the industry will look to strike the right a better balance between office and home working, client meetings will resume face to face, but Teams will still feature heavily.  I am very much looking forward to being able to meet with clients face to face, having not seen them in so long and also attending some events and networking with prospects. I do think 2021 will see more virtual events and I honestly believe this will become part of the future.

Technology is going to play a key part in the future of our industry, for 2021 it will continue to enable us to work in a different way with further advances being made to allow all employees to be as efficient and effective as possible.

The Government made changes to the MOJ Reforms in May, which has changed the claims process for low value road traffic accident related personal injury claims (whiplash claims). This has had an effect on the way we handle whiplash claims and the structure of our claims team who handle these. As the change is in its early stages, we are still adapting and working out what works best for us and our people when it comes to these claims.

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Great British Motor Claims Survey launched

ILC and ARC360 have teamed up to launch the 2021 issue of The Great British Motor Claims Survey.

First introduced in July 2020, as part of the Digital Motor Claims Festival, the inaugural Great British Motor Claims Survey – supported by Trend Tracker – provided a snapshot of how the COVID-19 pandemic is and could potentially impact on the UK’s incident repair sector moving forward.

One year on and, again supported by Trend Tracker, we are now updating this key industry insight.

Please spare a few moments to complete the survey by clicking here.

In return for your input, you will receive a pre-publication version of the report keeping you one step ahead.

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Redde Northgate Board confident of repair turnaround

The Board of Redde Northgate Plc are confident the integration of FMG RS, following the acquisition of Nationwide on 4 September 2020, will be earnings enhancing in FY2022 following a loss-making initial period.

In its preliminary audited results for the 12 months ended 30 April 2021 the business reported the integration of FMG RS ‘progressed well in the second half of the year, including the appointment of a new management team’.

It stated: ‘the business continued to be impacted by lower repair volumes during COVID-19 lockdowns and was loss-making through FY2021, but the Board remains confident that the acquisition will be earnings enhancing in FY2022, the first full financial year of ownership’.

The results also highlighted the group’s development of contract hire, expanding to LCVs in the fleet, and at year-end £17m of credit lines (2020: £nil) had been utilised on 1,600 commercial vehicles.

It also points to the roll-out of the new accident and incident management product to Northgate customers, launched in October, ‘is progressing well and has seen good take-up with several thousand vehicles signed up to date’.

Elsewhere in the business it has created a new small claims system called Pilot to manage claims post accident whiplash reforms, a new traffic officer app to support Highways Agency traffic officers at the roadside and a new online claims portal to enable more efficient processing of claims.

Overall, revenue (excluding vehicle sales) was 50.2% higher than the prior year, with the increase mainly due to the inclusion of Redde for a full year.

Martin Ward, CEO of Redde Northgate, commented: “Last year we focused on the integration of the businesses following the merger. That work is largely complete, ahead of time, with £20.5m of cost savings secured. Our next strategic priority is to grow revenue under our Drive phase and to utilise the services and infrastructure platform we have built to extend our market reach.”

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Sherwin Williams partners with Mercedes-EQ Formula E Team

Sherwin Williams has partnered with the Mercedes-EQ Formula E Team.

Both organisations share the objectives of driving technical innovations in the automotive industry, bringing people, products and platforms together and working towards a better, more sustainable and more inclusive future around the world.

Brian Gallagher, President and General Manager, Automotive Finishes division, Sherwin-Williams, said, “We’re extremely proud to partner with a groundbreaking team that not only supports Sherwin-Williams drive to redefine, repair and refinish, but our ambition to redefine what is possible.

“This partnership amplifies our corporate sustainability purpose around our environmental footprint, our product blueprint and our social imprint. By partnering with the Mercedes-EQ Formula E Team, we look forward to building on efficiencies and product performance to accelerate our customers’ performance – faster.”

Mercedes-EQ Formula E Team Principal Ian James said, “We are delighted to have Sherwin-Williams onboard as a partner of the team.

“Their commitment to making a positive impact on the world is something we praise and share as partners. The Company invests in its people and its communities, creating inclusive opportunities. This, coupled with their commitment to sustainability and their innovative approach to performance, further supports the alignment of our combined team.”

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Survey set to reveal EV readiness

ARC360 has once again teamed up with Trend Tracker and NBRA to survey the sector about its readiness for electric vehicles (EVs).

The survey aims to reveal just how the industry is gearing up to manage the rapidly increasing electrification of the UK car parc.

Click here to complete the survey.

In September 2020, EVs outsold diesel cars for the first time ever – 18.5% marketshare compared to 18.4% – and that trend has repeated every month since then, with EVs increasing their margin incrementally all the time.

A further injection for EV uptake came in November, when UK Prime Minister Boris Johnson announced that the ban on the sale of new petrol and diesel vehicles would be brought forward to 2030. The ban had originally been earmarked for 2040.

As such, it is now predicting that EV sales could overtake both petrol and diesel by 2025, while alternatively fuelled vehicles (AFV) could reach that landmark even earlier, in 2024.

To find out more about the current trends in EVs see the ARC360 special feature from March 2021:

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DM Keith acquires Ringways

DM Keith Ltd has increased its representation across Yorkshire with the acquisition of Ringways Motor Group.

Family owned, DM Keith now represents six brands, with 13 showrooms and two accident repair centres – DM Keith Leeds and Ringways Leeds – across 10 Yorkshire and Lincolnshire locations. 

The company is a franchised partner for ŠKODA, SEAT, CUPRA, Honda and now adds Ford and Kia to its brand portfolio.

Dougal Keith, Managing Director of DM Keith said, “The acquisition of Ringways; a well-known and respected business in the Yorkshire area, enables us to continue to invest in our business for future and sustainable growth.  We have a long-term desire to increase our portfolio and the addition of two fantastic brands is a huge step in the right direction.”

All Ringways employees have been transferred to DM Keith Ltd taking it from 290 staff members to 445 employees.

The combined annual turnover of £250m moves the Leeds based business into a top 60 position within the AM100 motor groups within the UK.

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AW rolls out Thatcham methods and support

In a reinvigorated relationship, AW Repair Group has chosen Thatcham Research as its preferred supplier of choice for methods repair data and technical support.

Following a short trial, AW has returned to the Thatcham Research ‘escribe’ platform, an online repair methods solution designed to help the industry return crash damaged vehicles safely and efficiently to pre-accident condition.

Steve Hoe, Technical Development and VM Executive at AW Repair Group explained, “We’re really pleased to return to the escribe platform. The speed that new technologies and materials are introduced can be challenging for repair, but escribe presents the latest information easily and accurately.”

Technicians and support staff at AW are also using Thatcham Research’s online learning programme, ecademy, with a business-wide roll out programme in place.

Dean Lander, Head of Repair Sector Services, Thatcham Research says: “It’s great to have AW back on board. This is more than a supplier and customer transaction, it’s a two-way street of feedback and insights, spanning ADAS fitment, safe Electric Vehicle repair and a skills programme. We look forward to continuing to work closely with AW, a business that remains at the forefront of repair.”

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