Mar - Apr 06: News

News

Online times manual launched
More than 500 repairers gathered in Sydney, Homebush Bay convention centre on 1st February to see the NSW branch of the MTA launch the eagerly awaited on-line times manual. If the manual is adopted by all repairers, not only in NSW but around Australia, and it is accepted by insurers as the universal times reference, it will herald a new level of understanding and cooperation between the parties. It will also drive another nail into the coffin of 'funny money funny time', since the manual is written in real time which necessitates the use of real money in arriving at a quote's bottom line. It will also force many shops to overhaul their internal cost analysis because they will be unable to use the outmoded 'allowed' rate of insurers which varies between $25 and $32 an hour depending on location. Each shop will have to know its own costs to which it will add a profit margin to arrive at its own shop rate.
While the launch may have been intended to be simply the release of a defining tool in calculating the cost of repairs, it also turned into a platform to confirm the strengthening position of the repairers in NSW in their campaign against NRMA over web based repair management (WRM) and preferred repairer contracts.
While speakers James McCall, Greg Coli and Richard Nathan concentrated on the principles and working details of the times manual, federal MP Bronwyn Bishop ripped into NRMA. The repairers certainly liked her comments but it had the effect of splitting the intent of the meeting between the times manual and the campaign against NRMA's on-line tendering system.
James McCall, CEO of the MTA in NSW opened proceedings by declaring funny money - funny time an anachronism and a fantasy based on fraud. He said that two Productivity Commission enquiries had now come out against it and the MTA had taken the initiative to change it with the launch of the online times manual called the 'OTMguide' which was cutting edge technology.
"This is the first step," he told his audience. "OTM is not written in stone. It is open to change."
He acknowledged the presence in the gathering of representatives from all the major insurance companies and said that NRMA had been especially helpful in putting the manual together. He also said that the launch was taking place in a spirit of cooperation rather than confrontation.
Leading repairer, Richard Nathan, (who began in the repair industry in 1954) called the guide the most significant change in the smash repair industry since the second world war. Once, he said, it was possible to pass on costs, but no longer.
"This meant that repairers were forced to cheat," he said, "but these methods of doing business are no longer acceptable. Honesty and transparency are in. Tonight we are introducing a better method of doing business that will lead to better working relationships ? sustainable relationships.
"Not all the blame for the past should be on insurance companies' shoulders. But what we've got here is quality and safety at a fair price."
He said that real time and real money had been accepted by some insurance companies already but as to those sitting on the fence the MTA had to go for the change now or it would never go.
Supporting James McCall, Nathan said the repair times manual is a living document. In other words it would evolve over time.
"One thing you must do," Nathan told his fellow repairers, "is to work out your shop rate. If you don't know what it is you won't be able to use the new times manual. If you can't work out your shop rate yourself there are people to help you like your accountant and the paint companies. Don't be afraid to face the fact that your shop rate is not the same as the bloke down the road. One size does not fit all."
Consultant Greg Coli concentrated his remarks on the workings of the times manual.
"This is just the start," he said. "To get the best out of the manual will need training and debate. We still have some work to do on it, but we've done a huge amount to bring it to this point. 300 people have trialled the product without major problems. It is the mechanism to move forward. We've had very valuable help from NRMA in its development."
Coli then ran a brief powerpoint presentation on how the system works. Once logged by an MTA member, a series of screens lead through vehicle make, model, year and all parts. Times for R&R on each part are quoted. The old paint rate has been done away with and now has been divided between labour and paint costs. Allowances are made for additional savings in painting multiple panels and for paint wastage in start-up and clean-up. A major benefit to repairers in dividing paint from labour is that a cost change in paint can be immediately factored into the system. There was also advice on repair method for each type of vehicle on OTM. The presence of high strength steel or a requirement to bond or rivet rather than weld (often indicated by a car maker for a turret replacement) is also shown in the manual.
The times quoted have been sourced as a starting point. As repairers begin to use the manual some may find a certain time to be inaccurate. There is provision for individual repairers to record their take on times and, if verifiable, adjusting the time shown in the manual for all members' use.
The manual can also be applied to making a list of parts required for a job and to email them directly to the parts supplier.

One of the most significant points made at the launch was by Richard Nathan who pointed out that remove and replace cost occupied only between five and 15 per cent of a job. The bulk of the money was spent on parts, repairs, paint and consumables.

Jackson replaced in IAG reshuffle
Rick Jackson has been moved from IAG's home, motor and compulsory third party insurance operations to take on a newly created role in IAG role of CEO, asset management, reinsurance and group strategy. He has been replaced by David Issa, who has come from group executive, technology services.
NSW repairers, who have embarked on a tireless campaign of protest against online tendering and aspects of IAG's preferred repairer contracts, will see this as a resounding victory.
CEO of MTA of NSW, James McCall, said he stood ready to talk to the new leadership at NRMA Insurance (IAG) in light of leadership changes in the organisation over the on-line tendering system.
McCall said that managers were simply a manifestation of the organisations they represented, explaining "it is one thing to get rid of pimples but it is the poison underneath that causes the pimples, which must be addressed. At IAG it is the culture that needs fixing."
McCall went on to say that the changes offered an opportunity to tackle long standing issues. He said the MTA is ready to work co-operatively with the new IAG management to address aspects vehicle repair management.
He also called on the NRMA Insurance to implement the recommendations of the Staysafe Committee which found the on-line tendering system to be unsafe and that NRMA/IAG had so far made no serious attempt to come to terms with these recommendations.
?This is about safety and protecting NSW families,? McCall added.
Although it was rumoured that Jackson was leaving, IAG CEO, Michael Hawker instead moved him out of the repairer conflict by recasting his front line of executives "to ensure the talent and depth of capability was shared across the group, while continuing to align executive roles to core businesses."
Jackson was appointed to his motor insurance role in July 2004. He joined IAG in 1999 from the Royal Automobile Club of Victoria where he had been the head of sales and marketing and executive general manager of commercial services.
Commenting on Jackson's change of portfolio Hawker said: ?in his new role, Rick Jackson will use his 20 years experience in underwriting, claims and financial analysis to determine our reinsurance needs, manage our in-house asset management group and drive our longer-term strategy."
Of David Issa Hawker said: ?David Issa will use his expertise in technology to create product innovation and continue to improve customer service in our personal lines business. During the past three years David has transformed our technology services area and has worked closely with personal insurance to introduce new initiatives such as our single customer view project which has enhanced our understanding of our customer base and our ability to cross-sell our products and services. He?s also had experience running financial services businesses from his time in banking."

AAMI now sole sponsor of Awards
AAMI, has become the sole sponsor of the Paint & Panel 2006 Bodyshop of the Year Awards. This means that all three award categories: best large shop, best small shop and best new shop will carry the title of "AAMI/Paint & Panel Autobody repairer of the Year". This will apply to regional as well as national winners.
AAMI's support has enabled Paint & Panel to elevate the quality and standing of the awards so that they are now a highlight of repairers' and suppliers' calendar.
Although AAMI is fully behind the awards, it does not participate in either the nomination or judging process. Nominations are made by suppliers or work providers. Shops can also nominate themselves. Winners in a particular year cannot be nominated for the following year but may rejoin the awards the year after. In that way fresh winners come up every year and shops new to the awards are encouraged to enter.
AAMI is part of Promina Group Limited. It is one of Australia's three largest motor insurers. Geoffrey Hughes, manager, public affairs for AAMI, is a strong believer in the awards program. It is largely through his enthusiasm that AAMI has now become the sole sponsor for the awards. He had this to say about the 2006 Bodyshop of the Year Awards:
"AAMI began our association with Paint & Panel in 1996 when we commenced as the sponsor of the Paint & Panel repairer of the year award. In 2002 the award was split into two categories of Large Shop and Small Shop (less than 12 employees) and last year, for the first time, the winners were named at a function attended by most of the state winners. This year AAMI is expanding its sponsorship to incorporate the best new shop award and we look forward to continuing the important task of rewarding new entrants to the industry.
"Despite the challenges facing all industry participants it is encouraging to meet the finalists each year and to see how they have all achieved excellence in different ways and in different markets. With the two divisions of large and small shops the judges can reward repairers with upwards of 50 employees on one hand and shops that operate as family businesses on the other. It is interesting also to see how some shops concentrate on big jobs and others on the smaller jobs but still attain the highest standards. I was lucky enough to be able to speak to a number of repairers at last year?s function at Mosman Rowers Club in Sydney and their clarity of vision for their business and their intimate knowledge of the details of their businesses were the most notable constants in our conversations.
"2006 is another year with other challenges and we are confident that the same spirit of striving for the best results will ensure another difficult task for the judges. On behalf of AAMI and in conjunction with Paint & Panel may we wish all nominees the best and we will look forward to this year?s awards."

NRMA opens new research centre
NRMA has moved its research centre from the Sydney suburb of Artarmon to Newington. Officially opened on March 3, the new centre has doubled the floor area of the old. There is now 1100m/sq (including a workshop) devoted to low speed crash testing, repair cost and car theft resistance.
The centre is staffed by more than 15 specialists including professional engineers, panel beaters, mechanics and parts experts. The new Centre will continue to provide NRMA Insurance?s repairer network with detailed technical bulletins to help identify potential issues that may arise when repairing particular vehicle models. As Australia?s only representative of RCAR, the International Association of Insurance Research Centres, which represents 25 centres in 20 countries, the new NRMA centre will be able to disseminate the latest industry information.
For over a decade, NRMA Insurance has operated a technical research centre, which carries out testing and research to help reduce the cost of car insurance premiums by working with the automotive industry. Since its inception, the technical research centre has reviewed thousands of vehicles, many before being released to the market. In fact, many of today?s popular cars have had direct design input from the technical research centre.
The centre is headed by Robert McDonald a professional mechanical engineer who joined NRMA Insurance as development engineer in 1986. He is also a private member of the NSW Ministerial Advisory Council for Motor Vehicle Repairs and a board member of the Motor Vehicle Repair Industry Authority. He represents the Insurance Council of Australia on the National Motor Vehicle Theft Reduction Council and is a member of the NSW Police Minister?s Car Theft Action Group as well as being a steering committee member of RCAR and chairman of the damageability and repairability committee.

Plans to import skilled labour
VACC has joined forces with the Federal Government to promote its latest initiative to tackle Australia's worsening skills shortage.
The Federal Government has announced an increase of 20,000 places in its 'Skill Stream of Australia's Migration' program. Under the program, 15 specialist 'outreach officers' have been appointed to assist industry associations and their members with advice on visas, employer options and accessing the Department of Immigration Multicultural and Indigenous Affairs skill-matching database.
Outreach Officer, Ian Ingle, has been appointed to the motor industry. He brings to the job over 30 years experience in dealing with employer-sponsored migration in Australia, China, the UK and India.
Ingle was introduced to the Victorian motor industry at a seminar for VACC members giving information on how to gain access to overseas skilled labour.
The seminar was the first of a series scheduled for VACC House. The next seminar will be held in February 2006.
"The skills shortage in motor trades in Australia is a major problem facing many of our members today," VACC Executive Director David Purchase said.
"To ensure the automotive industry remains competitive, VACC members need to be able to source reliable skilled labour.
"In many cases local skilled labour is just not available, and while a long-term solution to developing Australian skilled labour must be found, in the meantime, overseas skilled personnel has to be considered as a short-term fix.
"However, there are many pitfalls for small businesses looking to employ overseas skilled labour. By joining with the Federal Government on this initiative, VACC is helping its members avoid the traps and, in doing so, it hopes to ensure a good outcome for both employer and employee," Purchase said.

Permagard - the next level in shine
How do you get more kilometres per litre out of your passenger jet aeroplane? One answer is to treat its paintwork with Permagard, a French product that has now been released in a version for auto paintwork. Your aeroplane will use three to four per cent less fuel because Permagard will make its surface more slippery. Permagard on your car will give it a flawless shine and protect it from those nasty things that attack paintwork like sunlight, bird droppings and plant residues. There is also a third version for your boat.
Permagard was the brainchild of Frenchman Luc d'Argence, who was working for DuPont when he thought about developing a polymer coating for paintwork that would extend its life and make it look better. Not surprisingly, DuPont found the concept counter-productive and the inventor left to start the Permagard company in 1996. It came to Australia last year for testing and evaluation and now is being taken to the OE and smash repair markets. It is already being sold in 22 countries.
Permagard uses bonded reactive polymer technology to put a clear protective coating over paintwork. It also has a hardener in it, so that it cures like a clearcoat, filling rather than cutting the paint. It comes in two versions: 'pre-delivery' and 'permanent performance protection'.
The pre-delivery version is recommended for use by panel shops that are either preparing new cars for delivery or are looking for a stunning finish on a respray or repair.
The product must be applied by machine. Permagard supplies a repairer pack comprising a special buffing machine that provides extra weight and slow revolutions (around 1500 rpm), six bottles of the polymer solution, and buffing bonnets for a total of $1460.
One of the directors of the company is Darren Pate (Kingswood Smash Repairs) who has been trialling Permagard in his own shop and found it revolutionary ? not only in performance but as a profit earner too.
The body shop product is at its best on prestige cars and dark colours ? especially black ? where it totally eliminates swirl marks ? something that fussy owners notice. Permagard offers a six month warranty on the bodyshop product. It recommends that cars finished with it come back for a service each six months. NSW body shops using Permagard include Perfect Auto Body (Mercedes Benz), Tony Farrugia and Scientific.
The other auto body product is Permagard 5000. It is intended for use by professional car detailing shops and uses a more expensive version of the product which results in a two year warranty and a promise that your car will never have to be cut or polished again.

Smashlink speeds up quoting
The winner last year's AAMI/Paint &Panel best large shop in Australia, H. Harvey & Co in Brisbane, can estimate damage and give a written quote in 15 minutes. Essential to this remarkable performance is direct access to parts prices via Smashlink.
Smashlink is a parts interface service provided by Melbourne software development company, Reynolds & Reynolds. It directly links the repairer's computer (or portable tablet) to parts dealers so that the repairer can directly access current prices from the dealer's records. It cuts out not only telephone enquiries but also having to log on to a dealer's website and locating a parts list ? even if one is available. The link also enables repairers to order parts on-line and to be invoiced electronically.
When operating, Smashlink looks simple, but the work Reynolds & Reynolds had to perform in setting it up was considerable.
Smashlink is a piece of software that is added to an electronic quoting system already being used by a repairer. Currently, DNS, PPG and VQS can provide their users with Smashlink. The quoting system providers pay Reynolds & Reynolds a fee which they can on-charge to their users at their discretion.
At the other end of the link are dealers who supply parts and consumables to the repair shops running Smashlink. The dealers pay a one-off fee of $4400 for the software and $95 per year for support, technical assistance and upgrades to be part of the chain.
The repairer, who sits in middle of the chain, must nominate the dealers from whom he wants quotes, and those suppliers must agree to take on Smashlink. Once in place, Smashlink acts as a conduit between repairers and parts dealers via Smashlink's internet service. Smashlink says it provides the following benefits:
? Repairer can see accurate pricing and availability immediately.
? Repairer can quote anytime day or night.
? Repairer can order anytime day or night.
? Repairer can automatically receipt orders with one simple click of a button (hours of manual entry is removed)
Smashlink requires valid OEM part numbers and ?crashbooks/crashkits? are used to obtain this information. The repairer selects vehicle make, model & variance to display a list of valid parts for the selected vehicle to be sent through Smashlink for pricing and ordering.
Smashlink currently has 200 repairers nationally utilising Smashlink to quote, order and receipt their parts. There are currently about 120 dealers subscribing to provide pricing and ordering to those repairers.
An obvious extension to Smashlink would be the addition of insurance companies as a link in the repair chain so that repairers could send quotes to them through the same conduit. The company is currently seeking interest from insurers.

Reynolds & Reynolds primary business is as a dealer management system provider. It has 300 employees Australia wide, 40 of whom are in the development team. The company spend approximately $4 million per annum on research and development. The help desk is staffed by 50 people.

Bishop blasts IAG
In the midst of an attempted conciliatory atmosphere by the MTA of NSW for the launch of its online times manual, the Hon Bronwyn Bishop MP took off the gloves and pummelled NRMA over its online tendering system. She had appeared to have been invited to add her support to the concept of a times manual that would serve to unite repairers and insurers, but instead used the platform to fuel the repairers case against NRMA's online tendering scheme.
She told an audience of some 500 repairers who had gathered in Sydney for the launch that she was a great supporter of their industry and has respect for all small business.
"The David and Goliath struggle has brought you together," she said, not naming NRMA but clearly indicating who Goliath was. "You have strength and fortitude and won't be brow-beaten by those that threaten to put you out of business. Like the hospital system in NSW you can cut costs only by making people queue. In the panel beating business there will be a queue for consumers.
"The industry wants transparency and IAG should re-assess the system they are forcing on the trade. There is also a consumer safety aspect. IAG should see that it has made an error. There must be harmony again. This the country of the fair go. The question is, should IAG have third line forcing exemption or not?
"There is a need for a fair and reasonable outcome. Small business is the backbone of our nation."
As proof of her condemnation of IAG' WRM system in NSW Bishop said that she had taken her business away from NRMA.

Painting a Packard for a packet
The 1934 Super 8 Packard (Even though the sale price seemed encouraging, since Shannons' estimate was up to only $130,000, the cost of the restoration tells another story. The total cost of body repair, parts, engine repair, interior restoration and painting was about $180,000, meaning that the owner's wife (her husband, the original owner, had died during the restoration process)had to wear a substantial loss for all the anguish of the work and the waiting.
Those who have never paid for a total restoration of classic car would not understand where so much money could possibly go. But go it does, into chasing down rare parts, many from overseas, and into dismantling old bodywork and, in some cases, building parts that are unavailable. Finally, the car must be painted so that it closely resembles the original colour and finish.
This particular Packard was the car that everybody wants to find in a country shed ? which is exactly where it was discovered. It had stood there for 48 years, yet was in remarkably good repair, resident rats and other creatures not withstanding. There was only 58,000 miles on the clock and it begged restoration. The original owner, Richard Ruwolt, began by buying bits and pieces for the Packard himself in the second half of 2002, but by August 2004 it was in the hands of KJR Coachbuilding.
Looking at the invoices of the total restoration, one would have to say that KGR's charges are more convincing than those of New Image. The main reason is that New Image charged nearly $50,000 to paint the Packard. The paint used was PPG with a slight metallic speck. So the cost could hardly be attributed to paint materials. Furthermore, KGR's Karl Richardson says that he gave the car to New Image in a ready-to-paint condition ? meaning a relatively straightforward three stage process, plus polishing.
New Image is currently owned and run by Doug Welfare who defends his role in the huge charge by saying he was only an employee when most of the Packard was painted and didn't take over the business until the final stage of the job.
Irrespective of who owned the business at what stage of the painting job, the invoices show some remarkable hours, enough to encourage any young person to get into autobody painting, especially on restorations, and more especially on 1934 Packards.

AAMI crunches crash numbers
For the past 11 years insurer AAMI has produced its "Crash Index". It is published to inform and educate the community about crash trends. The Index is based on data collected from two independent surveys of 2400 Australian adults, each conducted by Sweeney Research. These are its key findings.
Road rage justified 82 per cent of people who have gestured rudely or yelled at another driver believe this response to the incident was justified.
Linking rage and congestion
Seven in ten drivers (70 per cent) think traffic congestion is a major cause of ?road rage?.
Most have experienced a crash
Two-thirds of Australians (68 per cent) have experienced a crash while driving. Almost half(45 per cent) have experienced a crash as a passenger in a private vehicle.
Unsure of limit
One in six drivers (17 per cent) is unsure how many standard drinks they can consume in two hours and remain under the legal blood alcohol limit.
Four in ten have driven over BAC limit
Four in ten (40 per cent) drivers have driven while ?probably over the drink-drive limit?.
Exceeding safe speeds Most drivers (89 per cent) admit they exceed the speed limit at least some of the time.
Distrust for cameras half of drivers (51 per cent) say they do not trust the accuracy of speed cameras.
Licences suspended one in eight drivers (13 per cent) have had their driver licence suspended or cancelled because of a driving
infringement. Of those, speeding is the most common reason (47 per cent).
Children a distraction half of people (55 per cent) agree that having young children in the back seat is a real distraction.
Fatigue a crash factor one in nine drivers behind the wheel during a crash (11 per cent) said fatigue contributed to the crash.
ABOUT OLDER DRIVERS?
For the purposes of the Crash Index older drivers? are those aged 55 and over.
Eight in ten older men (79 per cent) and six in ten older women (59 per cent) have experienced a crash while driving.
Of the older drivers who have had an accident in the past five years, one-quarter (22 per cent) said it was not their fault versus eight per cent of all drivers surveyed.
Drivers aged 51 and older have the lowest average cost per insurance claims
Nationally, drivers aged 60 years and older have the lowest incidence of car accident insurance claims (claims per 100 policyholders)at nine per cent versus drivers 51 and older withv29 per cent and drivers 31-50 with 47 per cent.
Most Australians (82 per cent) agree that older drivers should be tested more regularly for deteriorating eyesight and other things that may affect their driving Half of Australians (46 per cent) believe older drivers are worse drivers due to deteriorating eyesight and loss of confidence.
Older drivers are least likely to have gestured rudely or yelled at another driver when they have done something they thought was dangerous or rude.
Older women are the group most likely to have had another driver steal their car space while they were clearly waiting for it.
Older men are least likely to be annoyed when they are courteous to another driver who does not acknowledge the gesture.
Older drivers are less likely to believe they are better drivers than most others on the road.
Older drivers are least likely to have become angry with the actions of another driver and tailgated them.
Older drivers are least likely to have witnessed a road rage incident between other drivers.
Older drivers are least likely to lose their temper with another driver when in a hurry.
Older women are least likely to believe they are impatient drivers.
Older drivers are least likely to have lost concentration while changing a CD, tape, or radio station while driving.
Older drivers are least likely to often use a mobile phone without a hands-free kit while driving.
Older drivers are most likely to agree that hands-free mobile phones can be as distracting to driving as normal mobile phones (source: 2005 AAMI Crash Index)
Older drivers are most likely to agree that very loud music is a serious distraction when driving.
South Australia requires a certificate of fitness once drivers reach 70 years
Queensland, Tasmania and Australian Capital Territory require a medical check for drivers aged 85 and NSW requires a medical check for drivers at age 80
In the Northern Territory and Victoria, drivers are not required to undergo a medical or a driving test unless the State?s roads authorities are notified of concerns about a licence holder?s ability to drive safely

Why RACV wrote off a Mazda 6
The claim involved a Mazda 6 sedan with collision damage to the right hand side. The vehicle was finished in a pearl paint which is a finish that proved virtually impossible to reproduce outside the manufacturer's factory. A number of attempts were made by two bodyshops to repair the vehicle to the customer's satisfaction, however, after this was not successful, RACV organised an independent assessor who recommended a complete respray as the only way to satisfactorily return the vehicle to its pre-accident condition.
The decision was taken to close the claim as a total loss, firstly, because this was the customer's preference, and secondly because the costs were comparable to the costs of respraying the vehicle given that RACV could recover the resale value of the vehicle. In addition, because of the difficulty of reproducing the original manufacturer's finish, the insurer could not be confident that even a respray would be successful. The customer was fully compensated for all out of pocket expenses, and was given a hire car while his vehicle was being worked on.
RACV says its concern throughout this claim was to ensure that the customer was satisfied with the outcome of the repairs and, when this could not be achieved, to receive a final satisfactory settlement.
RACV states its objective in settling claims is to make sure that the needs of its customers come first, and that they are satisfied with the outcome of their claim.
RACV organises the repair of approximately 100,000 vehicles a year, and in by far the majority of cases it says customers are satisfied with the result. Where the customer is not satisfied, RACV says its assessors will arrange for the necessary rectification work to be carried out. In a very few cases, such as the Mazda 6, the vehicle cannot be repaired to a satisfactory standard, and a total loss payment is then negotiated with the customer.

Auto Trade Fair proving popular
The Australian Auto Trade Fair is the only major auto trade event in 2006 and the only auto trade fair in Sydney until 2008. Organisers, Expertise Events, says the fair's popularity endures ? judging by early exhibition space bookings. Thousands of auto buyers are expected at the fair over its three day span.
Not many exhibitions have a track record of thirty consecutive events over three decades. The Australian Auto Trade Fair turns 30 this year and returns to Darling Harbour in Sydney after being in Melbourne last year.
?The Australian Auto Trade Fair has been driving the auto trade forward for 30 years, and to reach this milestone is a remarkable feat? says Expertise Events managing director Gary Fitz-Roy.
The Australian Auto Trade Fair is being held at the Sydney Exhibition Centre, Darling Harbour, from 23 ? 25 June 2006.
A new creative initiative of ATF 2006 ? developed as a response to exhibitor feedback - is the Product Presentation Stage which gives exhibitors the opportunity to demonstrate and promote their products and services to a large qualified market. The Product Presentation Stage ads yet another dimension to the marketing and promotional possibilities of the fair.
To celebrate its 30th birthday ? its triumph over time - Expertise Events will present a handsome watch to a lucky visitor at random every hour the fair is open, on the hour. The watches are attractively designed, with Citizen movement, waterproof to 30 metres, and the bands are styled as tyre treads ? very appropriate for the automotive trades.
Suppliers interested in exhibiting should contact exhibition manager Ross Hannan on (02) 9452 7516 or email rossh@expertiseevents.com.au.

Repco helps apprentices
Repco, Australia's leading automotive retailer and trade supplier of automotive parts and equipment, tools and accessories has responded to the Federal Government's apprenticeship initiative called
"Tools For Your Trade". Repco has become its official supplier.
Tools for Trade has been designed to increase the uptake of apprenticeships in skilled trades, lead by the automotive trade.
Along with an awareness programme designed to promote skilled trade based vocations, the government also offers each new apprentice a grant of $800 which goes towards a tool kit which is collected from any one of the 300 nationwide Repco stores.
Repco caters for all apprentice needs and has designed kits in both Repco and Sidchrome brands to provide apprentices with all that they will need for the formative years of their new apprenticeships.
At the three month point of an apprentice's course his or her employer will receive a Tools For Your Trade voucher to purchase premium quality tools for the approved apprentice.
Once the apprentice has completed a further six months of employment, the purchased tools become their own property, forming the building blocks of a successful and rewarding trade based career.
According to John Florey, Repco general manager of merchandise and marketing, "Repco is delighted to be intrinsically involved with the Federal Government's "Tools For Your Trade" apprenticeship initiative. As Australia's
leading supplier of tools, parts and equipment to the automotive trades, our involvement in this initiative makes perfect sense. Our own Repco tools are excellent quality and carry a lifetime guarantee. We know that the tools
that we provide these apprentices with will form an essential part of their career for many years to come."

Fan Welding expands operations
Demonstrating its confidence in the collision repair industry, Fan Welding has expanded operations in New South Wales, Victoria, Western Australia and has plans for growth at head office in Queensland.
Following significant support from customers located on the NSW Central Coast and Sydney Northern Beaches, Fan has based a full time staff member at Gosford to strengthen its service to customers at NSW north, central coastal areas and Sydney northern suburbs. Also, to allow for its ever growing customer base in Sydney, Fan has increased its total customer care team based out of the Sydney office to six full time staff.
In Victoria too, Fan doubled its number of staff on the ground in Melbourne from November 2005.
In Western Australia, Fan commenced full customer support operations in Perth as of January 2006.
To assist in providing even greater customer support to its customers across Australia, Fan plans to install a small call centre at its head office in Brisbane to allow for the various time zones that its customers are operating in.
When asked about the expansion that Fan has planned for the future, Gary Locke, managing director said: ?our goal is to be a national provider to the industry and we will continue expand the level of service that we offer our customers into the future. We are confident that if we just continue to focus on providing excellent customer support through cutting-edge technology, newer time-saving methods and strong back-up service, we can contribute to the future success of the industry as a whole.?

Reality check for bodyshops
A management consultant in the UK has circulated a letter to bodyshops which applies equally in Australia. The figures were originally quoted in pounds. They have simply been multiplied by three to approximate dollars in Australia. Although the purpose of the letter was to drum up consultancy business, it has a message worth considering.
The letter says:
Are you experiencing a quiet time in the trade? Losing Money? Worried? Angry? Some prominent repairers have recently closed their doors. You don't want to join them.
It's time to take a close look at your business - will you survive? Let's face it, its tough out there. It's quiet. Yes, some shops are busy but many are not.
The repair business is simple:
? For each repair, you make about 40 per cent gross margin - in simple terms about $1000 per car assuming an average repair cost of around $2700.
? If you repair enough cars you cover your overheads and go on to make profits
? Try it! Take your monthly overheads (say $105,000 per month) and divide by $1000
? $105,000 divided by $1000 is 105 cars per month or 26 per week
? Are you repairing 26 decent jobs a week? If not, you will lose money each month until your volume ? How long can you afford to stay in business like that?
? Don't rely on the volume fairy.
? Don't bury your head in the sand and assume things will get better - they probably won't.
? Don't be too proud to ask for help.
? Don't lie in bed at night worrying - worrying is not the answer.
The answer is to take a deep breath and embark on a change program that will keep your business alive and put you in a position of strength from which to grow.
Think about it this way. You may be great at repairing cars but are you great at running a business? If you are, then you're very profitable and you don't need us.

The rise of the small bench
Most alignment bench manufacturers now offer an alternative to the drive-on heavy duty machine that was considered a natural progression to floor racks. Market demands have pushed the small scissor lift bench into prominence.
Tony Rogolo of Melbourne based Car Bench says: "the average shop is now handling between 65 and 70 per cent small hits. The big hits are being increasingly written off, leaving less work for the big benches.
"We're still selling big benches but they have been overtaken during the past three or four years by small benches like the Marlin."
Small benches began to move forward significantly when they added attachments like sill clamping, universal pins and jigs. Car Bench claims that its Marlin is the only small bench that takes universal jigs.
Pulling power comes from detachable arms. Today's small benches have arms can pull between six and 10 tons ? which covers the vast majority of jobs in most shops. Four wheel drives and heavy big cars are still the domain of the big benches.
There are several reasons why small hits have paved the way for small benches. One is the slowing of traffic, either by traffic authorities or traffic jams. Slow traffic produces small collisions. Another is the rising percentage of big hits which become write-offs. The introduction of airbags, for instance, has added thousands of dollars to any repair where the airbags have been deployed ? or even when they have to be removed and put back un-deployed. Yet another is the use of build materials which are difficult, if not impossible to repair. As high strength steels and aluminium are used more and more, the cost of repairing them pushes cars towards write-off. And the growing cost of repairs as a percentage of the falling value of used cars is also increasing write-offs.
Small benches have many advantages. They scissor lift, which means a technician has abetter access to the vehicle and any height he chooses to work. In their unextended state they are only a few centimetres from the floor which means cars can be driven or rolled on to them with ease. Many small benches are movable, meaning that they can take advantage of available floor space and work especially well in small shops.
Price is another attractive feature of a small bench. They sell in the $18,000 to $22,000 range, depending upon attachments that are included. Full size benches are double those prices and more.
Small benches are also suitable for adding measuring machines, handling mechanical work, engine removal and replacement.

Workplace Safety chart released
The updated Body Repairers Guide to Workplace Safety 2006 has been released with more than 7,100 copies being sent out to body repair workshops throughout Australia. This year?s chart features toTo Automotive industry management is required to have workplace safety information available to supervisors and employees at all times. Displaying the chart around the body repair workshop is an easy way to keep on the right side of workplace health and safety law.
All of the information on the chart is easy to read, using bullet points and plain English to get the safety message across efficiently and effectively.
Pro-Visual Publishing has produced the chart in association with the Motor Traders Association to ensure it meets the concerns of the industry.
Additional copies are available and all charts are produced and distributed without cost, thanks to sponsorship from responsible supply-chain businesses committed to raising health and safety awareness.
Enquiries: Pro-Visual Publishing (02) 8272 2611.

Sikkens raises $11,000 for RCH
It started in December of 2004, a little girl from Tasmania had been diagnosed with a serious brain tumor and was on her way to RCH in Melbourne for treatment. It could have been a nameless, faceless child, one of countless stories told each day. But this little girl was the daughter of one of Sikkens paint distributors and he had been given the news that most parents dread: his child was seriously ill. To add to the trauma Christmas was approaching fast and it looked like she would be spending it in hospital.
Paul Wake the national services manager for Akzo Nobel Car Refinishes decided that perhaps he had an opportunity to help in some way at his up-coming national performance group seminar which was being held in New Zealand. He decided he would hold an auction to raise funds for charity. His goal was to raise at least $10,000.
With donations of auction items from Sikkens, their distributors and even a couple of suppliers the auction was held. Paul?s job was to encourage the panel shop businesses attending the conference to be generous enough to bid. The auction raised just over $6,000 from only 15 items.
Although this was a substantial total, Paul had not reached his target and decided to approach four of the attendees: Danny Buzadzic from Western General Bodyworks in Melbourne, Tony Farrugia from Farrugia Bodyworks in Canberrra, BF Panels from Albury, NSW and Peter Blaas from Blaas Autocraft in Sydney with the dilemma of the shortfall. Each of them donated an extra $1,000 on top of their initial bids at the auction. A late donation of $500 from Trevor Parkes of Parkes Bodyworks in Melbourne took the total to $11,000 ? passing the target.
The cheque was presented to The Royal Children?s Hospital on Thursday 22nd December. The funds will be directed to the hospital?s paediatric intensive care unit (
New Glove Standards
One set of safety standards, known as the ?AS/NZS 2161 Occupational Protective Gloves? has been recently revised. These standards hae been devised to ensure gloves for industrial applications meet appropriate quality requirements. Complying with the standards is not compulsory for manufacturers, but may be seen as fundamental to safety mangers, providing essential performance information and peace of mind. But it is important to understand that because these standards are voluntary, not all manufacturers? products meet the standards.
What is of particular relevance to customers when choosing appropriate protection is covered in part three of the Occupational Protective Gloves Standards, dealing with ?protection against mechanical risks?. A ?mechanical risk? or hazard is one that can be caused by the mechanical aggressions of abrasion, blade cut, tear and puncture. Performances in these areas are measured on a scale of one to four for abrasion, tear and puncture, and one to five for cut, using standard testing methods. The higher the rating the better the glove performs.
Chemical Risks AS/NZS 2161.10 (EN 374)is another area of relevance, when choosing appropriate PPE. This is the section of the standards that covers ?protective gloves against chemicals?. This section will assist in choosing the right glove for the particular chemical being handled. It is important to note that even the best-made, most sophisticated glove may not be the right glove. Knowing which glove for which chemical will reduce accidents, glove costs and wastage.
The chemical hazards test measures a product?s permeation performance to a range of chemicals from 10 distinct chemical groups. The product must be able to meet a minimum permeation level to at least three chemical groups in order to pass this test. Gloves with the EN374-2 symbol offer the minimum permeation protection of more than 30 minutes against the chemicals, as represented by the letters below the symbol. Each letter corresponds to one of the main chemical groups.
Gloves with the symbol offer very basic protection, and do not provide more than 30 minutes permeation protection.
For more information on chemicals in the workplace and glove selection visit the Ansell Chemsafe website: www.ansellchemsafe.com
Other parts of the standards that are of relevance to specialty applications include protection against thermal risks, cold and radiation - to name just a few. All tests to comply with standards are performed by independent laboratories, while the ratings are for information and comparison purposes only. This allows you to compare two gloves and find out which one is better suited for your application.
The Australian Standards are designed to provide users with a clear set of guidelines for gloves intended for use in the workplace. The standards provide recommendations to ensure that the gloves selected will provide workers with adequate levels of protection and provide a guideline of what to look for in glove performance. Using gloves that do not have standards approval are less reliable and risky, especially when performing critical handling tasks. When choosing a glove look at information provided by the manufacturer to ensure that your glove choice is the right one.