Bodyshop, Covid 19, Insurance, People, Salvage, Supplier, Technology, Vehicle Repair and Words
Claims exchange fluctuations level off
Claims exchanges remained relatively stable for the week ending 27 February 2021 according to the CAPS Claims Analysis Report.
Measured against the exchanged peak – week ending 07 November 2020 – unique claims saw a two percent increase over the previous week rising to 76%, while supply chain transmissions stood at 82%, a one per cent increase on the previous week’s figure.
Industry Insights Ltd has acquired UK vehicle body repair and motor insurance market reporting and analysis organisation Trend Tracker Ltd.
Since 2003, Trend Tracker has produced The Future of the UK Car Body Repair Market report, renowned as the most credible and thorough research for the sector. The acquisition provides the platform for Trend Tracker to now add this success critical analysis across a range of market trends.
Supporting the acquisition, claims market specialist and Industry Insights associate director, Paul Sell will have extensive involvement.
Selsia has developed its repair management software to enable a new and faster connection with CAPS.
The new system means bodyshop management system updates from any of Selsia’s approved repairer network will automatically update Selsia’s repair management portal, Selsia Central.
Neville Lidford, Selsia’s Engineering & Operations Director said, “We’re always looking at ways to improve our operational processes. The adoption and integration of CAPS into our system was a strategic consideration.”
The team at BMS Eclipse has successfully completed the first half of the virtual Land’s End to John O’Groats challenge raising funds for Enterprise’s BBC Children in Need partnership efforts.
During February the BMS Eclipse team completed the 2918.85km distance by cycling and running. The challenge saw 31 individuals participate and included 233 unique activities completed along with 35 virtual bodyshop visits.
The EMACS Bodyshop Management Systems team is now attempting to complete the return journey during March.
Markerstudy Group has acquired Brightside Group, subject to regulatory approval, from private equity investor AnaCap Financial Partners in its first major move of 2021.
It follows the Group’s completion of the purchase of Co-op Insurance in December 2020 and investment by Pollen Street Capital and Qatar Insurance Company in January this year.
The acquisition adds in excess of £125m GWP to the Markerstudy Group and affirms its new partners’ belief in a dynamic buy and build strategy.
Breakout for Ben has raised just under £159,000 for automotive charity Ben – an amazing total that will help address its £1million fundraising shortfall.
The 10-day virtual active challenge took part in February and saw a total of 986 people from across the automotive industry take part. Participants walked, ran, cycled and exercised their way to complete over 80,000 miles collectively to raise much-needed funds for the charity.
Fix Auto Petersfield is undertaking a major investment programme that will double the size of the business and its repair capacity.
The first of the two-phase project is now complete after owners James and Patricia Poste added two neighbouring 4,500sqft units to their existing established business. The second phase will include the installation of additional equipment including a spraybooth for commercial vehicle repairs.
Once the project is finished, Fix Auto Petersfield will feature 20 work-bays which will double its capacity and enable the repair of up to 200 vehicles a month.
Copart UK has completed the seven-acre expansion at its York Operation Centre, as part of its ongoing growth programme.
Having acquired and secured planning permission last year, the additional land in York is now ready for use, providing a total of 31 operational acres and storage for over 11,000 additional vehicles annually.
In addition to its Operation Centre, Copart’s York-based capabilities also include a U-Pull-It (UPI) site, providing total capacity of 45 acres and a full cycle of services, from online auction sales through to recycled parts, to customers in the North.
Breakout for Ben has raised just under £159,000 for automotive charity Ben – an amazing total that will help address its £1million fundraising shortfall.
The 10-day virtual active challenge took part in February and saw a total of 986 people from across the automotive industry take part. Participants walked, ran, cycled and exercised their way to complete over 80,000 miles collectively to raise much-needed funds for the charity.
Teams embarked on a virtual journey visiting motor circuits across the UK, starting at Pembrey Circuit in north Wales and taking in all four home nations, before ending at Silverstone.
With the Breakout total included, just under £737,000 has now been raised to help address Ben’s £1million fundraising shortfall following its rallying cry last year asking for urgent support.
Breakout for Ben was the latest challenge to launch as part of Do It 4 Ben, to help ensure no-one in automotive faces life’s toughest challenges alone. Originally an annual fundraising challenge for Ben by TrustFord, Breakout for Ben was opened up so the whole automotive industry could show their support.
Stuart Foulds, Chairman and CEO of TrustFord, said: “With all the support Ben has continued to provide and knowing that the charity needed more support, I was very happy to lend TrustFord’s ‘Breakout For Ben’ event to a broader audience of participants in 2021.’’
Matt Wigginton, Fundraising Director at Ben, said: “Thanks to the incredible support of our industry, we’ve made a huge dent in the £1m fundraising shortfall we faced during the pandemic. This means we can always be there to help people in our industry when they need us the most.”
All funds raised will help Ben support automotive industry people with their mental health, physical health and wellbeing. Fundraising like this is vital and means that Ben can be there to help those in crisis and provide support with stress, anxiety, depression, money worries, or anything else.
Bodyshop, Environment, Mobility, Supplier, Technology, Training, Vehicle Repair and Words
Ever since electric vehicles (EVs) began appearing on our roads, people have been speculating whether the next 12 months would be ‘the year’ of the electric car. Experts have often referred to the ‘tipping point’, only to be proved wrong as sales numbers remain stubbornly low.
However, after many false dawns, 2020 saw a step-change in both attitudes and registrations and it seems now that, finally, EVs have made that long-awaited and irreversible breakthrough.
Numbers
The statistics make compelling reading. 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 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.
Literally overnight consumer interest in EVs surged, with Auto Trader reporting an increase in searches of 124%. 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.
Predictions
It predicts that EVs will account for around 10% of the total British car parc and AFVs around 18% by 2025, with these figures climbing rapidly to 30% and 40% by 2030.
The report said, ‘Post the ban on internal combustion engine sales in 2030 and then hybrid sales in 2035, it’s likely that, if assuming typical scrappage rates and exclude the exception of classic or collector cars, ICE vehicles will almost disappear from the car parc by the mid-2040s.’
These estimations appear to be borne out by figures from the Society of Motor Manufacturers and Traders. It found that while overall car production fell by 29% in 2020 in the UK, the production of electric and hybrid models actually rose 18.8%, with pure battery vehicles accounting for 4.5% of all units manufactured, up from 3.4% in 2019.
Models
It says there are now more than 100 plug-in models available in the UK, with upwards of 35 new models coming to market this year. However, even that number may be an under-estimation as vehicle manufacturers rush to bring forward their EV ranges. This month alone Jaguar Land Rover and Ford have announced plans to go all electric by 2030 respectively, following similar announcements by the likes of Volvo (2019), Honda (2025), PSA Group (2025), and Volkswagen (2026).
SMMT chief executive Mike Hawes said, ‘With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with government to encourage drivers to make the switch.’
Expected to soar
So, with an estimated 165,000 EVs already on UK roads, and that number expected to soar to a million by 2025, is the aftermarket ready? The obvious answer is no. A lack of skills in repairing EVs has been well-documented, as has the potential risks this brings, but there is another area that has not been so widely discussed – charging points.
If EVs become as widespread as anticipated, and in such a short time-frame, then repairers will need to ensure they have the infrastructure on site to support them. Vehicle manufacturers and work providers may insist on it.
Network
In January Activate Group surveyed its approved network to gauge EV charging capabilities, finding that 56% of survey respondents confirmed that they already have EV charging on site for vehicles undergoing repair work, with a further 34% offering a charging service to vehicles on site for other services.
Head of Business Services, Activate Group, John Gaynor, said: “As part of our supply chain strategy, we plan to put a UK-wide EV charging network in place for use by our fleet and insurance customers by the end of 2021.”
And while the survey also found that 80% of those who had no EV charging points on site said the extra power supply required did not pose a problem, businesses that take this for granted could be setting themselves up for a rude awakening.
Because while capacity may not be a problem now, it could become so.
Installations
Each substation on the national grid has a certain capacity, and each building is allocated a certain amount of that. Therefore, before any business installs charge points it needs to be sure the site itself has spare capacity, and also that the serving substation does.
Most individual sites have headroom, and if they need to go above it there is the potential to ‘rent’ more capacity from adjacent sites.
However, the really serious issue arises when a host of businesses max out their own capacity, and in so doing push demand on the substation to the limit, because whichever business is responsible for pushing the substation beyond its threshold is also responsible for the cost of upgrading it – a cost which could run into hundreds of thousands of pounds. It’s not inconceivable then, that a scenario could develop where a handful of organisations are holding back in investment, waiting for a rival blink first and thus incur the cost.
Steve Bolt, business development director at BCR Associates, a cost management consultancy in the energy sector, among others, said, ‘There is a perception that you can just put charging points in where you like, but that’s not the case. Every building has a kilowatt allowance and local substations can only support a certain amount of power. But there is an assumption that the grid can cope – very rarely does anybody have an idea this is an issue.’
National
But it’s not a just a local issue. It is widely recognised now that the national EV infrastructure in place is vastly inadequate to cope with surging numbers, and the installation of charging points will need a huge impetus in the coming years.
According to the well-respected Policy Exchange think tank, there will need to be an estimated 400,000 public chargers in the UK by 2030 if the petrol and diesel ban is to be viable. At the moment there are well below 10% of that (some estimates put it at 35,000 while others suggest the number is barely more than half that, at 20,775).
A report by Policy Exchange found that over the last three years an average of 7,000 public charge points have been installed annually, meaning that number will have to increase five-fold between now and 2030.
Boris Johnson has pledged £1.3bn to developing the charging infrastructure over the next four years, and earlier this year the government unveiled a new £50m scheme to increase the number of charge points in rural areas. Under the EV Homecharge Scheme, small businesses, landlords and leaseholders can get up to £350 in state funding to install a charge point.
Private sector
Meanwhile, the private sector is also rushing to fill this void. Gridserve opened the first forecourt dedicated to charging EVs in Braintree in December 2020. The site, which can charge 36 vehicles at once, is the first of more than 100 similar facilities planned for the UK.
Traditional oil behemoths Shell and BP are also ambitious in this area. Shell has recently purchased EV charging firm Ubitricity ‘to support drivers as they switch to lower-carbon transport’ and said that acquiring the 2,700-strong public charging network continues its expansion into the on-street EV charging market.
The company has already installed than 1,000 ultra-fast EV chargers across 430 retail sites in the UK, while its first bespoke EV charging forecourt is set to be unveiled in Fulham – first but by no means last.
BP meanwhile acquired the Chargemaster and Polar networks two years ago, now renamed bp pulse, and the company also manages 7,000 public charge points in the UK which it aims to more than double that to 16,000 by 2030.
So, with everyone else apparently at it, surely the time is ripe for repairers to get in on the charging act?
Planning
For those considering it, it’s worth remembering that not all chargers are created equal so what suits one business might not suit another.
Regarded as one of the country’s top repairers, with manufacturer approvals from the most prestigious brands in the world, including Tesla, Chartwell can consider itself to be an expert in this area.
Director Chris Brightmore said, ‘The speed of charging is the decider on the decision on how many points you need. Most electric cars will trickle charge off standard 240v over many hours, so no investment is needed there. But the speed comes from increasing the kW supply.
‘Fast chargers are rated at 7-22 kW and usually take between three and seven hours. Obviously as you get faster chargers you need less outlets, but the consumption needs a better infrastructure.
‘Rapid chargers are quicker still, and there are two kinds. Rapid AC charging just uses more power (43kW), while rapid DC chargers supply DC current straight to the car, allowing the car to charge at 50kW. All of these options need a suitable three-phase supply to achieve the ratings, often more than your invertor welders and other repair tooling require, so it needs to be looked at in detail by professionals.’
Speed
In terms of costs, the speed of charge determines installation costs. While EVs have adaptors to connect to various supply options from 240v up to 120kw, the faster charge options often require alterations to substations and the way power is supplied to the building, and that can get expensive.
Chris said, ‘The bigger the pipe-in the more you use and the more you get charged, it’s like water, more can flow so more gets charged.’
Fully charging a 60kWh electric car will cost between £8.30 and £9.40
A typical public rapid charging point in the UK costs around 30p per kWh
Of course, energy usage is variable and it’s impossible to know exactly how much you will use over the course of a year. But most contracts provide volume tolerance of 20% either way, with rates only rising if you go below 80% or above 120% of the total amount of energy bought.
Options
As ever though, there is a valid counter argument to rushing in. Although it is probably inevitable that virtually all businesses, not just bodyshops, will have charging points on site in the future, holding fire on that investment for a little while might be a sensible – and practical – approach.
Steve continued, ‘Since Boris Johnson announced the 2030 ban there has been a huge swathe of people saying they need to put EV chargers in place. But the negative side of the repair industry is that bodyshops don’t make large profits. Most don’t make much more than 10% profit. So, they need to ask themselves how many EV jobs they actually get and could they cope with what they’ve got for now?
‘Many of these shops have had a really tough year and just don’t have the cash. It might make sense for them to build up a fund now to enable them to do this in the next few years. The technology is changing and these things will get cheaper, so it probably wouldn’t hurt if they waited another 18 months.’
He also suggests that as we hurtle towards carbon reduction, even more incentives and grants will enter the market.
A year and a half may be about the limit of the delay though, as the automotive aftermarket will inevitably be dragged into the drive towards carbon neutrality by pressure being exerted down the supply chain.
Carbon neutral
The 2050 deadline to bring all carbon emissions to net zero by 2050 is well known. But less well known are the interim targets and the steps now being taken to achieve this status.
Already all companies in the UK with a workforce of more 250 must report carbon usage, while also providing their four-year plans to reduce energy usage. Heavy fines are imposed to those companies who fall short, and the financial penalties are likely to be ratchetted up in November when Glasgow hosts the 26th UN Climate Change Conference.
Dom Napier, managing director of Carbon Neutral Repair, which helps companies reduce their carbon footprints, said, ‘Carbon and carbon neutrality is very much on the agenda. 2050 is a world away, but there is an interim target in 2030 that the UK has to meet. At the moment we are tracking 20% behind that so I expect after November that the cost of being heavy on carbon is going to increase, and increase significantly.
‘That means if you are in a supply chain you are at risk that your customer or someone else in your supply chain is already looking at your carbon footprint. Procurement will no longer be based on price and service. It will be based on price, service and carbon neutrality.’
Greater awareness
Further, he says the rise in the EV car parc underpins a much greater environmental awareness among consumers, and repairers who get on board with that could steal a march on their competitors.
Dom said, ‘At the moment drivers overtly conscious of their footprint don’t have anywhere to go in terms of servicing and repairing that continues their own environmental commitment. So being able to demonstrate that you can service or repair that vehicle in a carbon neutral manner is absolutely aligned with the customer’s own environmental focus. People will definitely pay a premium for that so it’s a huge opportunity for the sector.’
Opportunity is definitely the word. In just eight years there will be an estimated 10 million public chargers in circulation, not to mention another 50 million private chargers. The charging infrastructure market value is tipped to top £100m by then, rising at an annual compound growth rate of 33%.
Very rarely do entire industries change as rapidly as the automotive sector is now, and in every case there have been winners and losers. Timing is everything, but for those who get it right the next few years could be a welcome relief after the last few.
Top tip
Although there might not be great savings to be made by reducing energy costs – when annual bills are typically between £10,000 and £20,000, turning the heating off when the workshop door is open and installing LED lights will only bring marginal gains – there is one other that might yield greater returns.
Steve Bolt said, ‘Make sure you get a decent contract. Too many repairers that I’ve met are not businesspeople; they are happier mending cars than they are looking at the business end of things and that’s where they fall down, because they don’t give enough attention to the things that cost them money. One repairer we work with was quoted £19,000, but we got it for £11,000.”
He also urged businesses to make sure they don’t let their energy supply contracts run down in the first place. Unlike mobile phone contracts, which tend to roll over on similar terms, if businesses let their energy contract expire they could see rates surge by 50%.
Bodyshop, Insurance, Supplier, Technology, Vehicle Repair and Words
Selsia has developed its repair management software to enable a new and faster connection with CAPS.
The new system means bodyshop management system updates from any of Selsia’s approved repairer network will automatically update Selsia’s repair management portal, Selsia Central.
The enhanced connectivity aims to reduce call volumes and administration time for network members, whilst providing Selsia insurance, claims solutions, and fleet customers with faster repair updates.
Neville Lidford, Selsia’s Engineering & Operations Director said, “We’re always looking at ways to improve our operational processes. The adoption and integration of CAPS into our system was a strategic consideration.
“Working together with the CAPS development team, the integration went very smoothly and we have been pleased with the consultation and support provided by the wider CAPS team. The benefits to our approved repairer network and our clients, will be substantial.”
CAPS Commercial Manager, Kevern Thompson commented: “CAPS, the Common Automotive Platform Standard is proud to support Selsia Vehicle Accident Centres in their approach to creating a digital journey for their networks and customers.
“Removing friction and cost of resource by ensuring automated data exchange provides the transparency of repair progression as it happens on the workshop floor. Everyone gains from the efficiencies created.”
Bodyshop, Covid 19, Supplier, Technology, Vehicle Repair and Words
Claims exchanges remained relatively stable for the week ending 27 February 2021 according to the CAPS Claims Analysis Report.
Measured against the exchanged peak – week ending 07 November 2020 – unique claims saw a two percent increase over the previous week rising to 76%, while supply chain transmissions stood at 82%, a one per cent increase on the previous week’s figure.
The week’s activity, although continuing the rise and fall trend since the start of Lockdown 3.0, breaks the pattern seen during the past few weeks which had witnessed major fluctuations from week-to-week. It also signalled the lowest increase seen over the reporting period.
Regionally, Greater London and Northern Ireland demonstrated three consecutive weeks of exchange volume increase, whilst for the third week in a row East Midlands; North East, North West; and Scotland all showed decreases.
Copart UK has completed the seven-acre expansion at its York Operation Centre, as part of its ongoing growth programme.
Having acquired and secured planning permission last year, the additional land in York is now ready for use, providing a total of 31 operational acres and storage for over 11,000 additional vehicles annually.
In addition to its Operation Centre, Copart’s York-based capabilities also include a U-Pull-It (UPI) site, providing total capacity of 45 acres and a full cycle of services, from online auction sales through to recycled parts, to customers in the North.
The announcement follows recent updates about expansions at Copart’s Operation Centres in Bristol and Wisbech, as well as plans for a new 31-acre site in East Kilbride which will double the company’s operational capabilities in Scotland.
Phil Briggs, Copart UK’s director of Operation Centres, Transport & Engineering, said: “This expansion will provide annual storage capacity for around 50,000 vehicles at our York Operation Centre and will enable us to continue providing our industry leading services in this part of the UK.”
Jane Pocock, managing director of Copart UK & Ireland, said: “Our ambitious growth programme has never wavered throughout the pandemic, and with the government’s roadmap out of lockdown plan now in motion, it’s set to be an exciting year for Copart as we keep investing into land, technology and unrivalled operational capabilities.”
Bodyshop, Insurance, Supplier, Vehicle Repair and Words
Industry Insights Ltd has acquired UK vehicle body repair and motor insurance market reporting and analysis organisation Trend Tracker Ltd.
Since 2003, Trend Tracker has produced The Future of the UK Car Body Repair Market report, renowned as the most credible and thorough research for the sector. The acquisition provides the platform for Trend Tracker to now add this success critical analysis across a range of market trends.
Steve Thompson, director of Industry Insights said, “Having worked in conjunction with Trend Tracker since Mark Bull took over the company several years ago, we saw this as a fantastic opportunity to broaden our offering to the vehicle repair and insurance markets.
“Mark saw Industry Insights as the natural home for Trend Tracker to continue its progressive approach to critical analysis for the market, that Trend Tracker has delivered over many years, and we wholeheartedly agreed.”
Supporting the acquisition, claims market specialist and Industry Insights associate director, Paul Sell will have extensive involvement.
Paul said, “Having been a help to Mark [Bull] in the recent production of The Future of the Car Repair Market report, I am excited to now be a part of bringing Trend Tracker into Industry Insights and developing its critical analysis of key market matters.”
Mark Bull, former owner of Trend Tracker and director of Auto Body Projects Ltd said, “During my time leading Trend Tracker’s comprehensive research, I’ve been proud to deliver meaningful industry analysis, from which several businesses have made informed strategic decisions.
“Industry Insights has a wealth of market-focused expertise, experience and knowledge that will develop the Trend Tracker market insight further, adding to the solid foundations thus far. I wish them every success in the future.”
Industry Insights has a number of immediate plans for Trend Tracker for the forthcoming months, including an in-depth report into electric vehicles and how the exponential growth will impact the motor insurance and vehicle repair markets.
Bodyshop, Covid 19, Environment, Salvage, Supplier, Technology, Vehicle Repair and Words
Save the date: ARC360 Q1 2021 digital event launch
ARC360 will be hosting its next digital event – The future in focus – during week beginning Monday 22 to Friday 26 March.
The online event will include innovative formats and deliver insights from key persons of influence from across the sector at both 10.30am and 1.30pm on Monday, Wednesday and Friday.
The session line-up includes: a debate around the things highly effective repairers could and, arguably, should be doing to continuously develop their value proposition; an exploration of vehicle technology and what impact it is having on the sector including a look at IIR; and an interview with a key person of influence from within the motor insurance sector to discuss how the motor claims business has and continues to evolve.
Full details of the event, along with registration, will be available next week.
Claims volumes continue to ‘ebb and flow’
Claims exchange volumes continue to ‘ebb and flow’ according to the CAPS Claims Analysis Report for week ending 20 Feb 2021 which highlights a reduction of eight per cent, following a 10% rise the week previous.
Unique claims – those claims initiated and exchanged for the first time within CAPS – reduced from 82% (week ending 13 February) down to 74% (week ending 20 February). This followed a 10% increase the previous week which saw unique claims rise from 72% (week ending 6 February).
Steer Automotive Group has opened a new site in Luton, bringing its number of branches to 11.
The new 10,000sqft bodyshop is the second site to open in 2021 making it a strong start to 2021 for the progressive group under the stewardship of CEO, Richard Steer.
The announcement on its website reads: ‘The business believes it is well placed to develop its operations as the lockdown measures ease and the country emerges from the pandemic. The new site expands the geographical reach and footprint of the business and enables Steer to provide its own range of services and measurably different repair experience to its clients and their customers.’
Repairify Inc operating as asTech, a portfolio company of Kinderhook Industries LLC, has acquired adasThink – a vehicle-specific ADAS identification technology.
adasThink retrieves information related to the vehicle-specific advanced driver-assistance systems (ADAS) and identifies required ADAS procedures and calibration based on labour operations in an automotive repair estimate.
The investment is planned to help Repairify further expand and accelerate its proprietary tools, technology and service offerings across the Americas and Europe.
Fix Auto Leeds North opens new flagship site
Fix Auto Leeds North has opened the network’s first purpose-built, state-of-the-art, multi-million-pound repair centre.
The flagship repair centre, owned by Sam and Stephen Smith, complements their existing Fix Auto sites in Keighley, Bradford and the opposite side of the city of Leeds.
Director, Sam Smith explained, “Soon after we opened our first site in Leeds five years ago it became apparent that unit would not accommodate our ambitions.
“The new development is in a perfect central location with superb road infrastructure and plenty of space enabling us to develop.”
To hear more about the development, as well as much more, listen to the ARC360 Podcast recorded with Sam back in September 2020.
Meanwhile: Fix Auto Blackburn; Fix Auto Bristol West; Fix Auto Mid Devon; Fix Auto North Staffs; Fix Auto Slough; and Fix Auto Stoke-on-Trent have celebrated their 10-year service to the network.
Copart welcomes HSE inspection programme
Copart has welcomed the announcement from The Health and Safety Executive (HSE) to launch a targeted inspection programme across the waste and recycling sector.
The HSE plans to carry out inspections across businesses within the sector, which includes the handling of end-of-life (ELV) vehicles, with a specific focus on reducing risks and injuries related to moving vehicles and machinery.
“Protecting our company reputation, employees, and anybody else that may be affected by our activities are of paramount importance, and we are pleased to be seen an example of best practise within our industry,” said Jane Pocock, managing director of Copart UK & Ireland.
The effects of Lockdown 3:0 are continuing to dampen work volumes across the UK repair sector, with more than half of respondents to an ARC360 poll reporting levels have dropped again in the last two weeks.
The snapshot poll, conducted during webinARC 3.4, found that nearly one in five (18%) reported a significant decrease in claims volumes in the past fortnight.
A further 38% reported a ‘slight’ decrease in volumes.
Sustainability is something every business is striving for, but there is no single route to get there. That was the message to stem from ARC360’s latest webinar – series 3, episode 4 – which touched on the technical, environmental and human elements of sustainability.
Catch up with the latest ‘repairer special’ ARC360 webinar featuring Sam Smith, Fix Auto UK multi-site franchisee; Phil Gilbert, Parkway Prestige; and Phil Chopping, Whaley Bridge ARC.
Bodyshop, Supplier, Technology, Vehicle Repair and Words
Repairify Inc operating as asTech, a portfolio company of Kinderhook Industries LLC, has acquired adasThink – a vehicle-specific ADAS identification technology.
adasThink retrieves information related to the vehicle-specific advanced driver-assistance systems (ADAS) and identifies required ADAS procedures and calibration based on labour operations in an automotive repair estimate.
The adasThink technology leverages the vehicle identification number to identify the vehicle’s build information. Within the information, the technology identifies the ADAS on the vehicle that has been impacted by the vehicle’s damage. Additionally, the technology identifies OEM calibration requirements and instructions.
“adasThink is a strategic acquisition that allows asTech to augment its service offering with identification of advanced vehicle systems that do not display a diagnostic trouble code. While these systems do not display diagnostic trouble codes, calibrations are necessary to ensure that vehicles are functioning as designed by the manufacturer,” said Paul Cifelli, managing director of Kinderhook Industries.
“Repairify is thrilled to welcome Nick Dominato from adasThink, who will be joining the Repairify team. asTech has always remained committed to providing customers with accurate diagnostic services. The addition of adasThink to asTech’s capabilities offers our customers meaningful information about the condition of a vehicle’s safety systems to ensure the vehicle is repaired to OEM specifications,” said Cris Hollingsworth, president of Repairify.
adasThink represents the 10th add-on acquisition for asTech and Kinderhook’s 101st automotive-related transaction.
Taking part were panellists Sam Smith, director, Fix Auto multi-site franchisee: Phil Chopping, director, Whaley Bridge ARC; and Phil Gilbert, bodyshop manager, Parkway Prestige – all of whom share the same objective, if not the same strategies.
Environment
To most people, sustainability is a green issue, relating to the preservation of the planet. That is certainly the approach being taken by Phil Chopping at Whaley Bridge, which became one of the first UK repairers to achieve PAS2060, the only globally recognised carbon neutral accreditation.
He said, ‘We’re all on the planet and we all want to look after it. I’m a father of three and want to give them something, so this just seemed like the right thing to do.’
There is also a strong business argument behind his decision.
The business case
He said, ‘By reducing carbon footprint you’ll reduce running costs. There is an initial capital investment but you will save money. It’s early days but we’ve already had good feedback from local fleets who want to work with us, local councils have also been in touch, and so have some larger fleets with 200-plus vehicles.
‘I saw it as a good differentiator as well. Being carbon neutral is a massive flag to wave to the general public. If you had the choice to repair your car at a bodyshop that was carbon neutral or one that wasn’t, you’d choose the one that was carbon neutral even if you did pay an extra £5.’
Step by step
Some of the steps Whaley Bridge has taken so far include going paperless, planning the most efficient routes for delivery/collection drivers – ‘a couple of minutes in the morning can save a couple of hours in the afternoon,’ Phil says – while also asking suppliers to make fewer, bundled deliveries.
‘We want them to bring all the parts together, we can’t do the job until we have them all anyway,’ said Phil hinting at the touch time process efficiencies within the business.
Whaley Bridge is now actively seeking similarly carbon neutral companies to work with, as it strives to reduce its footprint still further – aiming to reach net zero status by 2030.
People
No less significant to a company’s sustainability is its workforce. This is more true now than it ever has been, with the global pandemic impacting people in myriad ways, from mental wellbeing to their work-life priorities.
With apprenticeships put on the backburner and difficult trading conditions tempting many older workers to bring forward retirement plans, protecting and preserving your team is only going to become more critical.
Sam said, ‘The thing we’ve focused a lot on is looking after our people and making sure we communicate more often with them. We have a good one-to-one process in place now which we think makes us more sustainable in terms of our staff.’
Alongside two-way communication, Sam is also a great advocate of career development plans for every member of his team.
He said, ‘Work has to be fun, and if they can see how they’re developing and where they’re going it’s much more fun for them. Everyone has a tablet now and we use them during jobs to share images of repairs, but wouldn’t it be great if they also tracked your personal development, so you could come in every morning and see exactly where you were on the path in terms of training?’
Technology
A third plank of sustainability is keeping pace with technology. In today’s world we don’t use technology, we live it, and this is profoundly true in the automotive incident repair industry.
Philip Gilbert explained how Parkway Prestige, a repairer with a number of high-profile VM approvals, is future-proofing itself by ensuring it has the equipment and skills to handle the latest technology in the sector – such as ADAS repairs, which it also carries out for a number of other local bodyshops.
Its latest milestone is securing Tesla approval, a process which took two years.
Philip said, ‘We are keen on VM-approvals and decided to approach Tesla because it’s the future of electric vehicles. Getting the tooling was relatively easy, we budgeted for it over some months, but the training in Holland was a challenge due to Covid-19, which delayed things.
‘But we’ve only been approved a matter of weeks and are already getting work coming through the door, and because the labour rate is quite high because of the training involved it makes sense as a sustainable business model.’
Growth
Of course, sustainability has many moving parts and these are just a few of them.
Sam has recently unveiled a new bodyshop in Leeds, Fix Auto UK’s first purpose-built site, to help his business cope with rising volumes and process them more quickly. This too is part of securing a sustainable future.
He said, ‘Because of its location there is a lot of value in the building, so the property will gain more value than money in the bank. We’re now looking to do later shifts to utilise the space over a longer period. That doesn’t mean people working longer hours but introducing flexible shift patterns, which we know works better for some people.’
Social media working
Meanwhile, both Whaley Bridge and Parkway Prestige have engaged with social media to a greater extent to attract more business, yielding positive returns from LinkedIn and Instagram respectively, while Parkway Prestige is also considering diversification in the near future, with detailing and wrapping services both being considered for 2022.
Challenging times certainly, but the resilience and robustness of the industry is apparent wherever you look, with new models, new priorities and new solutions appearing to ensure the repair sector is in safe hands.
And all this despite Lockdown 3:0 continuing to bite. A live online poll conducted during the webinar found that 64% of respondents said claims/repair volumes are now between 40% and 80% (an even split between 40-60% and 60-80%), with 56% saying volumes had decreased slightly (38%) or significantly (18%) in the last fortnight.
ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa, Innovation Group and Prasco UK; and strategic partners AutoRaise; NBRA; RepairTalks; and TrendTracker.
