Reinvesting in the industry

It's no longer enough just to manufacture a quality product. Paint companies today play dual roles in the collision repair industry as product innovators and business educators.

Traditionally, paint manufacturers have supplied the collision repair industry with the materials it needs at the end of a repair job. Paint not only makes the car look like new, but it also protects the sheet metal below from corrosion. Plus, it gives the owner something to wash every Saturday during the summer and spring seasons. But in recent years, the paint industry has taken a more active role in the industry it serves by training shop owners to take their businesses to the next level; by training shop managers in best hiring practices and how to manage better; and by training technicians to be more productive. In short, they are training the shop from the front end to the back end.

"The product today isn't enough," says Hugh Schwartz, vice president of Spies Hecker. "It is very nice to have a fine product. [But] you need to be able to offer a heck of a lot more than just a good product to have a loyal customer today. We set out in all aspects of our company to improve the chances of success for body shops."

Perhaps more important to the future of the industry, many paint manufacturers also sponsor programs such as Vocational Industrial Clubs of America (VICA). They sit on boards of associations nationwide, such as the Automotive Service Association (ASA), the Society of Collision Repair Specialists (SCRS), the Automotive Service Industry Association (ASIA) and the National Auto Body Council (NABC). At the local level, paint manufacturers work to make the image of the industry more attractive to prospective technicians by going to high schools and by emphasizing collision repair's positive aspects. ICI Autocolor contributes both personnel and financial assistance. For example, the company was the first sponsor of the Collision Technician Apprenticeship Program (CTAP) and is also a corporate sponsor of SCRS and NABC. The paint maker's employees participate on the board of the NABC as well as on the executive council of the Automotive Management Institute (AMI).

Training, Training, Training

Paint companies have a vested interest in the success of collision repair shopstheir customers. If repair facilities thrive, then jobbers and distribution networks succeed, and the paint conglomerates prosper. But today, running a body shop entails more than just fixing cars. "Today it's not enough to be the best at repairing vehicles," says an Akzo Nobel spokesperson. "Shop owners and managers have to be top-notch business people, too."

To help the collision repair industry thrive, paint manufacturers are investing in it by expanding their roles.

According to the Akzo Nobel spokesperson, the company's mission is to be the best at enabling body shop profitability. That dedication allows the company to leverage its knowledge value beyond the basic paint product.

Most paint makers have training centers across the country that offer courses in management training, products, sales, warranty, production flow, hiring and interviewing, production management, increasing close ratios, hazardous materials, the National Rule, CSI indexing, paint shop performance tracking, OSHA compliance, personnel, materials training, and inventory management. ICI offers free educational seminars on the East Coast that cover such topics as better ways to run the shop, how to increase profits, how to increase efficiency, and training and development. According to Joel Hart, Valspar group vice president, the company's philosophy is to develop the end user (the painter) and the shop owner through training management techniques. "The trick is how to help [repair facilities] be successful and profitable during this day of consolidation. That's a critical part to it," says Hart.

Schwartz states, "The business is much more competitive today than it ever has been. You've got consolidators out there who are making inroads into the business. These are professional business people who understand business, who understand finance and are joint venturing with experts on the technical end of body shops, which makes business more competitive. For an independent to survive, it has to be better, too. So I think [consolidtion] is actually raising the standard for everybody."

Investing in the Future

Management training to help established businesses grow is not enough to keep the industry thriving. There is a technician shortage right now, and some blame the trade's image, while others blame unqualified technicians. Regardless of who's at fault, if the technician pool is not refilled and if the technicians entering the workforce are not sufficiently skilled, the industry will suffer. Because of this, many paint manufacturers are taking measures to increase the quality and quantity of technicians.

Elevating the expectations of body shop managers requires elevating the quality of the education technicians receive. PPG has developed a scholarship fund for students graduating from NATEF-certified high school programs and attending NATEF-certified junior colleges. In addition, PPG supports local VICA programs by acting as judges for skills competitions and by donating paint materials. Don Askew, director of automotive industry relations at PPG, chairs the executive steering committee for the International Youth Skills Competition and sits on the board of the Youth Development Foundation, a planning arm for VIC.A's Skills USA Championship, which is held in Kansas City every year. DuPont Automotive Finishes also has been active in VICA for many years. The company chairs 35 to 40 state VICA events and is active in Skills Canada as well as in international competitions.

Another avenue some paint companies have chosen is involvement with CTAP. Both PPG and Sherwin-Williams have representatives on CTAP's board, and both companies supported CTAP's recent initiative to establish a workforce alliance that would establish standards for apprenticeship programs.

Industry Image

Realizing that a good image is essential for the collision repair industry, the paint industry has joined the quest to establish a more positive image for its customers. To some companies, establishing a positive image is essential to attracting potential technicians. "People don't understand how good a career this industry can be," says Schwartz.

Many companies are active with the NABC in some capacity and use it as a vehicle to draw technicians at the high school level. "We have taken initiatives with NABC to work toward letting people know in the vo-tech schools that the automotive industry and collision area is a good viable field," says Askew, who also serves as chairman of NABC's industry relations committee. "I've made presentations at several junior colleges and vo-tech schools about the shortfall of technicians coming into this industry and ways that we can somehow improve the image of the industry itself."

Askew is also working with the American Vocational Association and with the American Guidance Counselor's Association to put together programs that will help enhance the image of the industry and reinforce to teachers and guidance counselors that the collision industry is a reputable one. DuPont and Spies Hecker also work with NABC, while Hart believes the best way to improve the image of the industry is through I-CAR's training program.

No matter how a company chooses to enhance the industry's image, it is clear that the concept is unanimously accepted and practiced. "I don't know an association in the collision industry that doesn't think it's working hard to enhance the image," says Bruce Cooley, director of industry relations for Sherwin-Williams.

Community Involvement

While the paint makers primarily reinvest in the industry that keeps them in business, they also contribute to the communities in which they do business.

According to Doug Kelly, marketing manager for DuPont Automotive Finishes, DuPont as a corporation donated more than $30 million last year in cash and property to non-profit groups. It also offered many land grants to wildlife groups that used land contiguous to the company's 87 plant sites.

Many paint companies, such as Martin-Senour, Sherwin-Williams and Valspar, contribute to the United Way and Habitat for Humanity. Valspar sponsors a Paint-a-Thon every year that entails employees repainting houses, and Spies Hecker sponsors an Adopt-a-School program to provide assistance to underprivileged schools across the country.

Spies Hecker also sponsors a Day at the Races, which is dedicated to assisting children with cancer. ICI Autocolor employees participate in community activities, such as coaching Little League baseball, soccer, basketball and football, according to John Bosin, industry relations for ICI. They also donate their time to inschool tutoring programs.

The Paint Industry's Role

Paint industry representatives have various opinions on the role of their industry within the collision repair trade:

According to Akzo Nobel's spokesperson, the company feels that the industry's role is "doing everything we can to enable our customers to run their body shops as profitably as possible."

Sherwin-Williams' Cooley says that "there's almost no role that some players are unwilling to participate in."

Andy Ladak, manager of marketing communications for BASF, notes, "Among the things we do is advise our customer base in preparing them for the future."

Bill Mays, director of sales at Martin-Senour, believes that the role of the paint industry is changing.

ICI's Bosin contends that his company's role is to make the best products possible to help shops increase productivity, as well as the best products for the environment. "Our role has changed a great deal in the last several years. Today, helping shops be more productive and efficient facilities [helps strengthen] their position," he says.

"With the consolidation that is taking place today," adds Bosin, "the shops that are classified as B (mid-level) shops are feeling a lot of pressure to invest in their facilities [so] they can produce more revenue and be a surviving, thriving shop. I think it's incumbent upon the paint companies that deal with those shops to [sit them down], build a business plan and do a complete analysis of their operation to help them become better business operators."