I just received the CCIF Mississauga meeting report. Even though I was not at the meeting the report I received outlined key discussion topics. Attracting and retaining techs is one of thee most important areas of concern in the auto collision industry and for that topic not to be at the top of the industry’s communication agendas and not talked about raise concerns for me.
I continue to ask this question, “What is the auto collision industry doing to address the short and long term viability of auto collision techs?”
Read on to hear what the Canadian collision industry has to say at the-
CCIF
“With the theme of this meeting being about leadership”, began CCIF Chairman, Tony Canade, “what better way to start than with an opening address from the Mayor of
Myths, Lies and Leadership…The Simple Truth About How to Lead Your Market, Your Business and Your Life
“Every industry thinks theirs is the toughest and their challenges the greatest,” said Donald Cooper. “Running a business is certainly tough, but if you truly love it, you’ll find ways to satisfy increasingly demanding customers and cope with stronger competition, shrinking margins, increasing complexity and finding/keeping great staff.” Donald explained the problem of overcapacity and how it affects margins; a market may be able to support three competitors, but there may be five in business. The top company will achieve an ROI of 15-20%, the second will achieve 10-12% ROI, the third will break even and the other two will lose money. What is interesting is that when the two money losing companies go out of business, someone will perceive a gap in the market and promptly fill it, thus perpetuating the overcapacity and the pressure on margins for all five competitors. Donald suggested following the strategies of successful large corporations that will only enter or remain in a market if they can reach the number one or two position in it.
Donald drove home the point that mediocrity in business is no longer an option. Once the customer has experienced “Disney World”, they expect nothing less. So the challenge is how to create an extraordinary customer experience, whether it be through creative, visible features or simple “go the extra mile” services that “wow” your customers. The first task of leaders and managers, though, is to create clear commitments – commitments to the future of the business, to customers, to staff, to the community and to family. Commitments should be derived from a vision of the desired future and should be expressed in a one page clear and measurable vision statement, devoid of the usual “aims, goals and targets”, but with clear and compelling commitments to the business, customers, staff and community.
Instead of defining themselves by the business they are in, companies should restate their role by describing how they help their customers. They need to ask more questions to understand their customers better, building and maintaining information on their purchase history, their interests, their lifestyle, their concerns and needs. To grow a business by gaining new customers and retaining existing ones, it is not enough to be extraordinary through uniqueness; the customer experience must provide compelling value. A sure sign of failing to provide or communicate that value is when customers see nothing else to focus on except price.
Addressing another major issue of the collision repair industry, Donald spoke about the need to create a business where people want to work and to be committed to its success. Companies must understand what staff want from their work, but also communicate to them the vision for the business, seeking their feedback and their commitment to the vision. It is essential that the whole team be on the same page with the same sense of commitment to the business and to their role in achieving the vision.
IBIS Global Collision Repair Conference Report
Fresh back from attending the International Bodyshop Industry Symposium (IBIS) in
While on one hand the trend towards corporate consolidation continues, the diversity of OEMs, brands and vehicle models is growing. There may be limited export potential for some of the new vehicle manufacturers developing in emerging markets, but they will bring innovations in cost and technology that may influence manufacturers in mature markets. With the increase in vehicle brands fighting for market share, competition will drive new model/variant introductions over shorter time scales, thus increasing the number of parts and the complexity of repair.
An IBIS survey of CEOs revealed that the issues of greatest concern were technical skill levels and environmental legislation. Vehicle technology is moving ahead of the industry’s ability to repair some models. In order to meet customer needs, vehicle manufacturers must work more closely with the industry to ensure the availability of trained technicians and equipment in order to carry out repairs correctly and safely. Further waves of environmental legislation were expected to keep impacting the industry, putting more pressure on costs and the ability to operate profitably.
Other presentations at IBIS focused on lean production and the need to develop new strategic relationships in order to find new creative solutions. Tony expressed some pride in the fact that many of the issues discussed at IBIS were already being addressed at CCIF meetings. Good examples are best practice recommendations on lean production techniques presented at CCIF and CCIF’s strategic partnership with Skills
Government Regulations Affecting the Collision Repair Industry
“The purpose of government regulations is to provide Canadians with a safe and healthy environment in their home and workplace,” said Bruce Henderson of DuPont Performance Coatings, as he began an overview of current and future regulations affecting the supply of materials to the industry. These include the chemical content of products, labelling, shipping and emissions. Bruce cited the main components of the regulatory areas administered federally, provincially and regionally – Workplace Hazardous Materials Information System (WHMIS), Precursor B Regulation, the Canadian Environmental Act (CEPA), the Chemical Management Plan and Toxic Substance regulations.
CEPA gathers information on chemicals and tracks their use, raising concerns if necessary and requiring CEPA compliance for all chemical components of a product before it can be imported into Canada. Under the Chemical Management Plan there is an aggressive project to reassess 11,000 chemicals that were grandfathered by CEPA in 1984. Only four of five of them are used in products used by the collision repair industry, but manufacturers will be ready to face the issue if the reassessment calls for their elimination.
Provinces and in some cases, local “regions” such as Greater Vancouver, the cities of Toronto and Montreal, are responsible for regulations on emissions into the air and water.
Sarah Paul of the Ontario Ministry of the Environment (MoE) described a new streamlined process for the Certificate of Approval that all
Waterborne Survey Results
Cindy Macdonald reported the results of Bodyshop Professional’s benchmark survey on the conversion to waterborne products. On a scale of one to ten, collision repairers reported their satisfaction with the conversion experience as an eight. While just under 10% of respondents had spent less than $1,000 on the conversion, over 20% had spent more than $20,000. If they had to do it again, some shops commented that they would do more research into paint brands and equipment and that they would seek more financing. With regard to post-conversion costs, 40% stated that operating costs were higher and over 50% said that material costs were higher. While 46% of respondents claimed that productivity was about the same, nearly 40% said that it had improved. Overall, satisfaction levels with the conversion were high, as was the satisfaction with paint supplier support.
The Journey of a Recycled Part
Steve Fletcher of the
CCIF Skills Program
The increasing need to attract young people into careers in collision repair has always been a focus of CCIF, but the existence of Canada-wide skills competitions has provided a tremendous opportunity to expose the industry to thousands of students and influencers. Leanne Blackborow explained the unique partnership that had been created in April between CCIF and Skills
- Ensuring that there is a national car painting champion in 2008 and a coach to prepare him or her for the 2009 WorldSkills Competition in
- Identify what can be done to maximise the number of regional and provincial car painting and auto body competitions.
- Involve the industry in providing materials, facilities, equipment and people to design and judge the competitions and to meet, greet and promote the industry to visitors at the Skills Competitions.
- Create the linkage between the industry and Skills
Reporting on the 2008 National Skills competition that took place in
Leanne thanked CCIF Skills Program sponsors individually, without whose support there would have been no 2008 national car painting champion to compete at next year’s WorldSkills Competition. She encouraged others to make contributions to sustain the program and help it achieve its goals for the industry.
The Y Factor: Engaging the Younger Generation
“It’s one thing attracting young people,” began Laura Cole of the Dale Carnegie Business Group. “But it’s another thing to understand their needs, keep them motivated and retain them as long term staff.” The Y or Millenial generation represents those born between 1977 and 1998 and, like every generation before them, has been shaped by its time. “Gen Ys” are confident, optimistic and believe they have the power to change things. They may appear to have short attention spans, but this may be because they can multi-task and because they simply get things done quickly. They believe in the wisdom of the group more than authority, and they influence by talking rather than rebelling. They may not complain, but just do something differently or rewrite the rules based on their perspective.
The Y generation grew up in a safe environment, transported by minivan, in safety seats, to facilities that met all their needs. In sports and competitions there were trophies for everyone – just for showing up.
So what does all this mean in the workplace. First, more than 50% of Gen Ys have had three of more jobs in the last five years. Employers often recognize that this generation is different, but simply don’t know how to deal with it. What the Gen Ys are seeking is good pay (many of them have large school debts), respect, fun, responsibility, frequent feedback, mentoring, benefits and security. They want to feel secure, appreciated and allowed to be creative. Work is important to them, but as part of a balanced life which includes family, friends and many activities. They are willing to work hard, but want to enjoy it, making friends and socializing with their co-workers, too.
It’s important to recognize that trying to change Gen Ys won’t work. You can keep trying, but you’ll keep losing them. So if your
goal is to keep them, the key to success is to work with them. Make sure they understand your vision and goals for the business and that they are truly aligned with them and on board. Provide structure by organizing schedules, setting deadlines, seeking commitments, defining tasks and success factors. Encourage their “can do” attitude and support their personal self-image, while taking advantage of their team spirit and getting them involved in company social events. Listen to them and ask for their opinions and ideas. Respond to their need for change and new challenges so that they don’t get bored or feel that their contribution has no value. Respect their life balance needs and provide fun opportunities in an employee-centered workplace. By adopting the attitude that your job is to accommodate them, rather than change them, you’ll keep the brightest and the best for years to come.
Mentors at Work
In concert with the ideas expressed about the Y generation, Mark Claypool of VeriFacts Automotive, showed some alarming statistics about the looming skilled labour shortage, emphasizing the critical importance of running a business in such a way that it not only attracts, but also retains the young people it will need to survive. The industry has not done a good job of attracting and developing apprentices, but studies have identified the key elements of apprenticeship programs that have proved to be successful. The key elements include strategies and processes for recruiting entry-level staff, apprentice orientation, mentoring, pay plans, accountability, tools and equipment. All of this provides structure and consistency that will certainly be appreciated by the apprentice, but most important is the mentor principle, i.e. a designated experienced employee who will support and develop the apprentice.
A mentor should be chosen, not because he is the best or fastest technician, but because he has respect for others, technical expertise, the desire to mentor, company loyalty and above all, good communication skills. Just as teachers are trained to teach, mentors at work benefit from being coached in how to mentor apprentices.
Mark explained that his company’s Mentors at Work program can help with the selection criteria for apprentices and with strategies for reaching out into schools and colleges to identify and attract young people with the potential to become skilled technicians. To create the best first impression, an apprentice orientation program should be in place to share the company’s vision and goals, discuss what’s expected of them and excite them about their roles. From that point on, regular reviews between the mentor, apprentice and the program co-ordinator, will keep the focus on developing the apprentice’s skills, dealing with issues before they become problems and keeping the young person motivated to make his or her career at your shop.
Tony Canade commented that several of the day’s presentations had fitted well together in providing important insight on ways to beat the challenge of maintaining a skilled workforce. The changes that are needed to ensure successful, profitable businesses and a healthy industry will be made one at a time by individuals ready to accept new ideas and motivated to act on new knowledge. Tony hoped that every CCIF participant would leave with at least one “take-away” on which they would act. He also hoped to see a large contingent of industry stakeholders from across the country at CCIF
CCIF thanks the following sponsors for their support in making CCIF and this meeting possible. Sponsor contributions also enable meeting fees to be kept at a level that makes CCIF accessible to all.
AkzoNobel Coatings Ltd. Assured Automotive
Audatex BASF Automotive Refinish
Bodyshop Professional Magazine Canadian Underwriter Magazine
Canavans Central Appraisal Limited Car-Part.com
CARSTAR Automotive Canada C.K. Collision Centres Inc.
Claims Canada Magazine Co-Auto Co-Operative Inc.
Cross Canada Auto Body Supply Ltd. Discount Car & Truck Rentals Ltd.
DuPont Performance Coatings
Fillon Technologies Fix Auto
Impact Auto Auctions Ltd. Keystone Automotive Industries
Mitchell International NAPA-CMAX
Pro Color Prestige Publications Rousseau & Associés
R.S. Finishing Systems Inc. Rockwood Learning Solutions Inc.
Sherwin-Williams Automotive Finishes The Dominion of Canada General Insurance Company
Uni-ram 3M
For more information about CCIF visit www.ccif.net or contact Mike Bryan at administrator@ccif.net or 905 726 9027
