Nearly 400 delegates attended the 2018 IBIS Challenging Perspectives conference in Munich last week, 11-13 June.
As an IBIS media partner Paint & Panel also contributed to the 2018 Global Focus and over the coming weeks we will be publishing the reports on the state of the bodyshop industry in a number of key international markets.
The IBIS Summit is spread across a Monday night of networking drinks, a full day conference with formal dinner and entertainment and a further half day of sessions. There was a strong delegration from Capital S.M.A.R.T attending as well as the Fix Auto team from around the globe. Apart from that we didn't spot many Australian industry representatives this year.
The conference kicked off with a session from Paul Steele of TurstPilot talking about the change in consumer car buying habits and the key elements of creating online trust for you business.
Steele described trust elements as: web design (ie have a good one or people are immediately put off), updated content, ‘browseability’, easy to find contact, company and location information, a humanised brand, accessible FAQ, T&Cs and data security, trust seals (approvals, awards etc) and the presence of social proof. Steele placed emphasis on the need for a website to have social proof, or reviews, with over 92% of consumers reading online reviews before purchasing. He said, ‘The most important trust element is having social proof, having a community of reviews is a big confidence booster for customers.’
Paul concluded that businesses can engage with consumers more effectively, while gaining trust will bring a stronger relationship with customers.
Next up data experts ICDP predicated an average of 23% reduction in collision repairs across EU countries by 2030. Much of the thinking behind the reduction doesn't apply to Australia while the presentation was interesting it did have a crystal ball element to it as these kind of predications are very hard to make.
Profiting from automotive chaos
Andrew Marsh, director of Auto Industry Insider who produces Ezi-Methods, gave a cracking presentation on how the disruption caused by current technology should be seen as an opportunity by enterprising bodyshops. He encouraged delegates to ‘embrace’ electronics, software, system networks, big data, new commercial partners, recruit or invest accordingly and, in his own words, ‘above all: enjoy.’
He pointed to the ever-increasing complexity of repair highlighting a host of calibration points including the potential for lidar, radar and camera fitments both front and rear of a vehicle. ‘A vehicle could have all of these systems fitted or could have none of it fitted – we really don’t know until it lands in a collision repair centre,‘ said Marsh.
Discussing the variety of sensors, Marsh highlighted three groups: those from 2000 onwards which require static recalibration; those from 2008 onwards which need dynamic recalibration; and those from 2017 onwards which are self-calibrating. ‘Self calibration is where vehicle manufacturers need to go because when it becomes standard they need to be capable of covering it with a warranty,’ said Marsh.
Andrew referenced how the ‘tool room’ approach is becoming increasingly critical to repair/recalibration tasks – correct procedures, necessary space, time and correct tooling being the key aspects for repair in the future. ‘Until we get to self-calibration, the methods are skewed and scattered.
‘As a future trend we will see more sensors per vehicle,’ said Andrew, ‘but due to a lack of consistency in technology and fitment there is no one standard of how to recalibrate the systems. We have a significant pool of vehicles already within the market that will require ‘expertise’ to facilitate a safe and efficient repair'. This, he suggested, was where the value would lie for profitable businesses in the future.
‘Moving towards 2030, self-calibration will come and come quickly, but it leaves a gap,’ he said. ‘We need to educate ourselves and become the go-to industry for this expertise – become the one stop service provider,’ said Marsh. ‘We need to recruit and invest accordingly and become that hub of expertise for the future.’
Horses for courses
After a rather bewlidering session from Deloitte essentially about the fleet marke came a session with Michael , chief executive of Nationwide Accident Repair Services (UK giant network) and Frank Liu, CEO of Fix Auto China.
Nationwidesuggest that the day of one site being able to repair every vehicle had passed. When asked to describe each company’s model of operations, Wilmshurst explained that Nationwide places an emphasis on the diversity of the repair solution where different problems need different methods.
‘We have a saying: sometimes you need a nurse, sometimes you need a doctor and sometimes you need a surgeon,’. In order to repair correctly, a company must have the right equipment, and technology. Furthermore, Wilmshurst stated that it is important to ‘keep within scope’ and make sure you are capable of doing the job before taking it.
Talent is a concern in both markets, with Liu highlighting the lack of technicians within China’s industry. He pointed to efforts Fix Auto has made to implement training. Supported by government funding, Fix Auto China has invested in schools to train technicians. Frank said, ‘The goal was to set the bar for the industry in China, we are the future for the industry.’
We reported on Jennifer Boyer's session last week which wrapped up day one. We have also reported separately on Brad Mewes' consolidation session and Calibers' presentation. IBIS closed with a session on the skills gap, the best suggestion this reporter thought was to engage universities more in qualifications. This could bridge parental objections about going to TAFE or equivalent versus going to university.
Next year the summit takes place on 10-12 June at the Grand Hotel Dino, Baveno near Milan. (Sign me up now please)