ARC360 Market Intelligence: September 2022

Market-Intel-September-2022

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NBRA welcomes Synetiq as part of green parts push

UK salvage, dismantling and vehicle recycling company Synetiq has joined the NBRA in a bid to raise awareness and uptake of green parts.

Research has found that nearly 30% of bodyshops do not use green parts in repairs, although most say this is down to resistance among customers and work providers.

The NBRA and Synetiq argue this proves that more needs to be done raise the economic and environmental benefits of using green parts in repair.

David Bradley, Head of Green Parts at Synetiq, said, “We’re proud to become a member of the NBRA and to have the chance to engage and listen to their members across the UK. One of the main reasons for our collaboration is that we share such similar values, and we exist for the same purpose – to transform our industry for the better. We can only do this by working together, particularly to raise the awareness of green parts and the benefits they bring.

“We’re already seeing the tide of change in opinions of using green parts and collaboratively we aim to keep this momentum going by listening and acting on feedback. We want members to help shape the future of green parts and I believe that together, we are a powerful voice that can make an impactful difference to our industry, our customers and in the global efforts of reducing carbon emissions.”

Chris Weeks, Director at NBRA, said, “NBRA have been pushing the environmental message for many years now and in October this year will host our third Greener Bodyshop Awards. However, profitability, parts delays and speed of repair is almost a more immediate challenge for repairers, one which can be significantly counteracted with intelligent use of recycled parts.

“Synetiq are incredibly proactive in this space and very keen to work more closely with the NBRA and to understand what more can be done to assist the sustainability of both repairers and the environment. We are very pleased to announce this collaboration.”

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Copart Colchester upgrades underway

Copart is continuing its commitment to its Plan-Net-Zero strategy with major infrastructure upgrades underway at its Colchester Operation Centre.

In line with the sustainability blueprint established at the recently refurbished Bristol Operation Centre, Copart’s Colchester site is following a programme of upgrades that will include state-of-the-art insulation, low energy LED lighting, and new onsite waste treatment facilities to filter and clean water.

As the demand for electric vehicles escalates, the redevelopment at the Colchester site will also introduce dedicated EV areas as well as charging facilities. Plans also include new areas for vehicle preparation and processing, valeting, and 360° imaging.

The company said, “As the partner of choice for most major insurers, alongside our continued efforts to expand and improve our range of customer services, we have a responsibility to operate sustainably and ethically.

“Our programme to upgrade and replace offices at our nationwide Operation Centres will ensure that going forward our offices are always inclusive, energy efficient, and constructed in an environmentally friendly way.”

All upgrades are expected to be completed this year.

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Gemini goes ‘all-in’ for AutoRaise Rally

Gemini Accident Repair Group is supporting the AutoRaise Rally by entering 29 cars, which will travel 370 miles through the Midlands and Wales from 21-23 September.

This is the first AutoRaise rally to be held since Covid-19, and will raise valuable funds for the charity set up to support apprentices hoping to join the industry as well as businesses seeking to offer apprenticeships.

Gemini’s cars will be prepared by its own apprentices across its sites, giving them an opportunity to highlight their skills while at the same time raising funds for the charity.

Meanwhile, the group has recently been named among the UK’s Top 100 Apprenticeship Employers.

It finished 70th on the prestigious list, and Technical Training and Development Manager John Henderson will now represent the company at the House of Lords Top 100 Apprenticeship Employer lunch on 7 September.

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Talent spotting within automotive

With a focus on the next generation of automotive talent, this month’s ARC360 on-demand webinARC met three individuals who are all thriving in very different roles within the sector.

Taking part in this one-off session were Adam Daloub, Operations Manager Credit Hire & Recoveries, Carpenters Group; Elyse Bell, UK & Ireland Account Specialist, Entegral; and Matt Turner, Multi-Skilled Accident Repair Technician, Gemini ARC.

They shared their experiences, early impressions of the industry, and offered telling advice for those coming up behind them.

In their owns words, let’s hear their stories:

Adam Daloub:

“It was purely by luck I ended up in the industry. I studied law at university and applied for various law jobs after qualifying, and just fell into motor, specifically credit hire.

In my first role I used to monitor hire and ensure that period is recoverable. I then progressed to negotiating outstanding payments and then into litigation, where I was a defendant litigator. That meant I was on the side of the insurer and would see what was recoverable and proportionate and then negotiate offers.

I joined Carpenters four years and now I’m on the claimant side, and it definitely helps having worked both sides of the argument.

One thing I’ve learned is that this is a fast-paced industry and quick decision-making is key. No matter how strong your argument is, everything is down to documented evidence so you have to be realistic. You can’t afford to hold on to arguments you can’t win.

I’d also say that being a good communicator is key. It’s probably the most important thing, because you’re in the industry for a long time and you want to build relationships with your opponents. So being able to communicate and find a middle ground is really important.

And you have to be patient with your career. Carpenters provides the right development and training and offers a clear career development path. It also has a policy of promoting from within so the opportunities to progress will come, but that’s only if you have the right attitude.”

Elyse Bell:

“I graduated from university and came through the Enterprise Graduate Management Trainee Scheme. It was great, you learn every aspect of business and even get the opportunity to run your own business. Enterprise also offers a very structured career path after graduation and that was very attractive.

I went from assistant manager to manager, and then about a year ago I moved to Entegral. I’d learned during the scheme that my strengths were in account management and that was something I wanted pursue, and I’m grateful that I’ve had a lot of support and training along the way. I was also given an individual mentor through Enterprise’s Women in Rental, a scheme to support women progress in the workplace.

One of the things I like best about working at Entegral is its focus on young people. It has really embraced the next generation, and the diversity in age and its willingness to put its trust in youth to make big decisions is not something you see everywhere. It’s very empowering.

That’s actually similar to the best piece of advice I was given. When I was facing a challenge, I was asked, ‘what’s the worst that can happen?’. I think that applies to both your personal and professional life, and it give you the confidence to aim high.”

Matt Turner:

“I did an apprenticeship in construction first and it was a bad experience. Apprentices were treated in quite an old-fashioned way so I decided to move to motor, and the Gemini apprenticeship completely eclipsed my previous experience.

It was more flexible with lots of encouragement to progress and make the most of yourself, so you can tell Gemini values their apprentices as future technicians rather than just cheap labour.

It is a three-year apprenticeship but took me five because of Covid-19, and it is very structured with different phases for different disciples – so MET, Panel, Paint and EV – and when you’ve done them all you begin the process again, getting more in-depth and building your skills each time.

You also have block weeks at EMTEC College, where you learn a bit of theory and get the opportunity to practice the skills you might not use every day in the workplace, like repairing aluminium.

I’ve also learned so much from working with technicians who have done the job for 20 years. You have to treat them as a book and read them, because everyone who has helped me has taught me something different.

Looking back, I’d say the best advice I’ve been given is don’t be afraid to push yourself and make mistakes. You learn far more from your mistakes.”

ARC360 would like to thank its Corporate Partners Solera Audatex, BASF, BMS, CAPS, Copart, Emacs, Entegral, Enterprise Rent-A-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, and Sherwin Williams as well as Partners asTech, The Green Parts Specialist, Indasa and Prasco, and Associate Partners Gemini ARC, Thatcham Research and Trend Tracker.

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Feature interview: Dave Sargeant, Managing Director, Gemini ARC

According to the Institute of the Motor Industry, the automotive industry could face a 160,000 shortfall in skilled labour by 2031. Although the total number of jobs in the sector may decrease, the changing skill sets and growing exodus of talent could put the industry under even greater strain than ever.

ARC360 partner Gemini Accident Repairs has been a long-time advocate of apprentices, recognised again this year as one of the top 100 companies in the UK for developing new talent.

Here, we speak to Managing Director Dave Sargeant, who is also Chairman of AutoRaise, about the company’s commitment to developing the next generation, and how the industry can appeal to a wider demographic.

Can you briefly explain how Gemini is securing a pipeline of new talent?

Gemini uses several methods of sourcing strategies to secure new talent. From partnering with the AutoRaise charity, the UK industry charity that aims to solve the skills crisis by finding and recruiting new apprentices into the industry, to connecting with Nottingham College, using an in-house recruiter team to build a talent pool in addition to joining with some of the best recruitment agencies in the industry, we have a strong recruitment strategy.

From an apprenticeship perspective, Gemini ARC partners with Nottingham College, EMTEC, to source talent and recruit apprentices. EMTEC will carry out pre-screening assessments for applicants, and then suitable candidates are passed forward to Gemini ARC to interview.

Gemini also advertises at recruitment fayres, schools, and colleges to gain as much reach as possible as well as encouraging our current apprentices to speak with their friends.

What are your company’s long-term goals?

Gemini ARC’s long-term goal involves evolving and growing with new site locations, thus increasing our repair capacity and staff focus. We are currently recruiting 73 apprentices throughout the group, which equals 11.5% of the workforce. The goal is to always keep above 10% of the workforce on an apprenticeship or training programme to ensure we keep bringing in new talent and upskilling the workforce. We are very fond of ‘promotion from within.’

We back-fill Vehicle Damage Assessor and Multiskilled technician positions at all sites for when an apprentice is fully qualified and progresses to a permanent role. Similarly, when we open new sites we take on a minimum of three further apprentices to add to the programme. Some are looking at future training on our pathway to VDA courses.

We are also widening our training and development team capabilities by adding additional courses and investing in our people.

The drop-off rate of apprenticeships remains high – how does Gemini ensure apprentices remain engaged throughout the journey?

We hear this a lot, but Gemini has very little drop off regarding apprentices. I believe that to be because of the investment we have made into a strong training and development team.

It is well known within the industry that we invest in our apprentices and go the extra mile by hosting awards ceremonies and regular recognition of their achievements. This can make a difference to just offering a job pathway.

Apprentices are also fully aware of their journey. This includes a timeline for when they will reach pay increases and other benefits, when they will qualify and what career paths are open to them after that.

The Gemini programme is so considered and detailed that apprentices are aware of what is coming. They are also offered individual mentoring when they first join the programme.

What more can the wider industry do to appeal to the next generation?

The industry must start somewhere; listening to the likes of AutoRaise and actively taking apprentices and young people on will make all the difference, but you must be prepared to invest, teach, and develop people. I strongly believe the amount of young people that are interested in the industry far outweighs the numbers of actual apprenticeships and bodyshop placements available to them.

Is there too much onus on bodyshops to attract and train – can other stakeholders in the sector do more to future-proof the aftermarket?

I think it is and 80/20 split now; 80% is on the bodyshops because we require the staff and there is an aging workforce that needs replacing, but the other 20% of the industry must support bodyshops with the likes of levy funds.

How do you see the role of the bodyshop technician evolving in the next 2-5 years?

The role of a bodyshop technician will certainly be more technical and electronic based over the years. Over recent years there has been a need for EV training, and this will only evolve. There will be less manual and more automated methods of repair.

For us, the multi skilled technician is the way forward, and our apprentices undertake training on many aspects of repair functions, such as using ADAS technology.

Vehicle technology is evolving, and we must keep up with the times. For example, a painter will now need to understand radar cameras to be aware of the depth of the paint onto a bumper as part of a vehicle repair.

Will the skills of today be the same as tomorrow, and if not, what new skills do you think will become more relevant?

All in all, the skills of today will remain, such as panel alignment, panel repair and the standard paint process which has not changed. The electronics and combustion engines changing will obviously mean that there are mechanical and electronic changes to adapt to.

Also, the extensive accidents will reduce with car technology evolving but will lead to an increase in smaller repairs, but they will be more expensive and complex. However, this industry will always thrive, and car repairs will continually be required.

Are apprenticeships as they are now fit for purpose?

Yes, the multiskilled apprenticeship is most certainly. A multi-skilled apprentice learns all craft aspects of vehicle repair, including Mechanical, Electrical and Trim, Panel Repair and Replacement and Preparation and Paint. If anything, they risk being over skilled, overtaking that of a single skilled technician.

The bodywork has stayed the same for a long time and will remain the same, we’ll still need to be able to repair vehicles, but the technology in cars is massively advancing and that needs to be understood by all repairers.

We often hear experts advising to recruit people over skills – what sort of characteristics/personality traits do you think will suit a future repair centre?

It helps when someone has a real passion for cars, but so long as individuals present a positive attitude and have the willingness to learn they have the characteristics to make it. Like other roles they must show enthusiasm to the role.

What do you think is the sector’s most influential selling point?

There are several selling points. Firstly, the industry offers good pay and packages. The industry also can offer a career for life. I believe our sector can appeal to the younger generation as it offers a recession-proof career.

Not forgetting either that the car is also one of the most important purchases for someone, UK people are precious about them, and there will always be that requirement to ‘fix’ a car.

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Audatex joins grid for AutoRaise Rally

Audatex has announced that it will take part in the AutoRaise Rally.

The Rally is returning this year for the first time since Covid-19 and will raise funds for AutoRaise, which aims to tackle the skills crisis in the sector through more apprenticeships. It will take place from 21-23 September, following a 370-mile route through the Midlands and Wales.

Audatex has bought its own car for the event, and is partnering with Foray Motor Group to get it ready for the starting grid.

Anyone wishing to sponsor ‘Billy’ can visit here, with donations over £100 also securing your company’s name and logo included on the livery for the event. 

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ARC360 News Round Up – Friday 19 August       

Register Now… 

On Demand webinARC – Next Generation: 1.30pm Wednesday 24 August 

The next ARC360 On Demand webinARC will address the escalating skills crisis within the automotive sector, with leading experts in the industry discussing recruitment and retention, and how to appeal to a wider demographic of next generation talent.

Taking part will be Carpenters, Entegral and Gemini ARC. 

Government announces accelerated self-driving timeline

The UK government has unveiled plans which could see self-driving vehicles on UK roads by 2025, with some automated vehicles on motorways as early as next year.Backed by an investment of £100m, it is creating new legislation to accelerate the roll out of automated vehicles which it believes could create 38,000 new jobs and add £42bn to the UK economy. 

Repairify set for Automechanika reveal

Repairify will showcase a range of new remote diagnostics products for the European automotive aftermarket at Automechanika Frankfurt, which will take place from 13-17 September.

Motofix secures AA appointment

Motofix Group has announced that all eight of its accident repair locations covering the south and south west have been appointed by AA Insurance, covering both the AA Underwriting and AA Accident Assist.  

Coming soon: ClaimsTech Live

There is less than a month to go until the innovative ClaimsTech Live event takes place at Village Underground, Shoreditch on 15 September.

Themed ‘Show me happy customers (and the money!)’, the fully immersive ILC event is being widely supported by the insurance industry, with Aviva, Collingwood, ERS, LV and Marshmallow among the major insurers taking part.

Automotive vacancies set to top 160,000

The IMI has revealed the scale of the looming skills crisis, predicting there will be up to 160,000 vacancies in the automotive industry by 2031.

It believes that despite a two per cent decrease in the total number of jobs in the sector, an aging population, decreased immigration and the green agenda will exacerbate the skills crisis over the coming years.

Promotion for Powles

Phil Powles has been promoted to the position of Volvo Cars UK Body and Paint Programme Manager at OUTSORC.

He joined the multi award-winning programme in January after working at Davies Group as the Network Manager and brings with him over 25 years of experience in the repair, engineering and insurance claims sector.

Mixed second quarter results

UK heavy goods vehicle (HGV) registrations grew by 0.4% to 9,533 units in the second quarter of 2022 but has declined by one per cent in the first half of 2022 compared to 2021, according to the Society of Motor Manufacturers and Trader.

It has also reported that the UK new bus and coach market grew by 0.6% to 1,066 units in the second quarter and is up 17.9% on last year.

Indasa teams up with Evercoat for major exhibition

Indasa will co-exhibit at Automechanika Frankfurt with Evercoat after signing a European marketing and distribution agreement with the a US-provider of high-performance body fillers.

Automechanika Frankfurt takes place from 13-17 September.

Book now for ‘must attend’ event

Tickets are still available for the inaugural MGA Claims Conference, which takes place at 155 Bishopsgate, London, on Wednesday, 28 September.

Held in association with the Managing General Agents Associations and supported by gold sponsors EDAM Group and DWF360 along with silver sponsors Vitesse PSP, the ILC event has been described as ‘must attend’ for MGAs, insurers, capacity providers and claims suppliers throughout the UK and Europe.

Use it or lose it

Motor insurers must make the most of new technologies such as automation and AI to prevent policyholders switching carriers.

This is according to EIS Group Senior Alliance Director Paul Wishman, who said that a bad claims experience is the main reason customers change insurers.

ARC360 podcast library 

Check out ARC360’s back catalogue of podcasts featuring some of the key personalities from across the sector sharing insights into their journey within the claims sector, their perspectives on how the industry and how they see the future shaping up. 

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Customer retention is the not-so-hidden war taking place within the insurance sector and as technology advances, creating more opportunity for differentiation in the claims journey and customer satisfaction, the battle is only going to intensify.

In this contributed article, Paul Wishman, EIS Program Director, who has a proven track record of improving performance through innovation, discusses the value of artificial intelligence (AI) and automation in gaining the competitive advantage. 

Our acquisition of Metromile’s Enterprise Business Solutions coincided with a recent report from Accenture and a spate of LinkedIn posts from some within the insurance industry that highlighted the friction that still exists within the claims experiences – and served as a timely reminder that customer experience is the area where the greatest opportunities exist.

To help encapsulate the scale of concern, Accenture found that 31% of claimants were not fully satisfied with their home and auto insurance claims-handling experiences over the past two years. Among the top concerns were settlement speed (cited by 60%), followed by issues with the closing process (cited by 45%).

Not surprisingly, dissatisfaction with the claims experience is a primary reason customers switch insurers. According to the report, 30% of dissatisfied claimants said they had changed carriers in the past two years, and an additional 47% said they were considering it. 

Overall, unhappy consumers could represent as much as $34bn in premiums annually and as much as $170bn over the next five years.

AI

However, AI and a range of other technology solutions can now improve the claims customer experience. 

Accenture found that 79% of claims executives that were surveyed believe automation, AI, and data analytics can add value across the entire claims value chain, from flagging fraudulent claims to damage assessment and loss estimation, reserving, adjusting, processing optimisation, and subrogation.

Further, Accenture found that 65% of insurers plan to invest $10m or more in these technologies over the next three years, which spells bad news for technology laggards.

From my own experience, I can attest that AI can replace rules-based applications, which frequently require manual interventions, and introduce enormous efficiencies. 

And it makes sense to leverage AI for decision-making across the claims value chain too.

Plus, insurance carriers are inundated with structured and unstructured data. By leveraging AI and cloud-native technologies, carriers can better ingest and analyse data, making quicker and better decisions while at the same time minimising overheads and, most importantly, offering claimants an improved customer experience.

Technology

While the Accenture report focuses primarily on the impact AI can have on improving claims, many other complementary technologies also can help insurers align with the claims value chain and make sure they’re responsive to customer needs.

These opportunities include harnessing the right ecosystem of technologies to make it easier to collaborate with essential partners across the value chain, including third-party administrators, enabling more straight-through processing that liberates adjustors to focus their efforts on more complex incidents.

All of this can help improve the customer experience as well as overall satisfaction. 

But as customers increasingly seek insurance providers that offer the best service, a carrier’s interest in improving the claims experience is also a matter of healthy self-interest, and I look forward to continuing to solve root problems and demonstrate enhancements across claims operations and the customer experience.”

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Coming soon: ClaimsTech Live

Less than a month remains until the innovative ClaimsTech Live event takes place at Village Underground, Shoreditch on 15 September.

Themed ‘Show me happy customers (and the money!)’, the fully immersive ILC event is being widely supported by the insurance industry, with Aviva, Collingwood, ERS, LV and Marshmallow among the major insurers taking part.

ClaimsTech Live 2022 will showcase the latest in product development through a number of cutting-edge demonstrations, while attendees will also hear key people within the sector share their experiences and insights into the trends and technologies shaping the claims space through a number of peer-to-peer interviews.

Supported by Headline Sponsor Sightcall, Gold Sponsors Solera Audatex, CoreLogic, Digilog, DWF360, LexisNexis, and Verisk and Silver Sponsor Synergy, ClaimsTech Live 2022 is the latest in a full calendar of digital and physical events taking place throughout the year. 

This includes two digital events – the first took place in June and can be seen here – as well an ongoing series of interviews with ClaimsTech partners.

To secure a ticket or support the event please email ILC Sales Executive Jon Hutchinson jon@iloveclaims.com or ILC Head of Events Rachael Hunt rachael@iloveclaims.com.

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