THE INFLUENCE OF
INSURANCE COMPANIES
Insurance companies are increasingly
exhibiting more influence on the the
automotive refinish market by implementing Direct Repair Programs
(DRP). Body shops understandably
have a desire to become involved in
these programs since they result in
more business. Insurance companies
encourage these programs because it
lowers their costs by reducing the number of body shops that they need to
work with and by leveraging their purchasing power. In a recent report on the
automotive refinish market, Chemark
Consulting Group reported that more
80% of all shops in the U.S. participate
in at least one DRP.
“One trend we see, especially in the
higher segments, is a shift away from
local customers—small independent
operators—to global customers,” said
Schueler. “Compared to the past, vehicle
manufacturers (OEMs) play a much
more active role in vehicle refinishes
activities through their dealer networks
and approval systems. The majority of
body shops used to be small independent operators, but these days the number of body shops linked to dealerships
is increasing constantly.”
The increased power of insurance
companies has fueled the consolidation
of the body shop industry. According to
Chemark, the number of body shops in
the U.S. has decreased by 31% from
1992-2006.
“The decision-makers in the industry—insurance companies and OEMs
in particular—have played an important role in this trend,” said Schueler.
“For our premium brand Sikkens, it
means that we need to provide a different sort of support than we have traditionally provided to smaller operators.
Where they needed support on business
management and finance, it’s much
more about providing process solutions
to improve efficiency and throughput
with these larger operators.”
BASF SIGNS CHIP FOOSE
AS A COLOR EXPERT
BASF has signed Chip Foose, one
of the nation’s most successful car
designers and builders, to be one
of BASF’s color experts for both
OEM and aftermarket paints.
The Foose Signature Line of
BASF colors, marketed under the
brand names R-M and Glasurit,
will be launched in November.
CONVERSION TO WATERBORNE
Environmental concerns such as
stricter environmental legislation and
the move to more water-based technologies are also driving the market. In the
U.S. most refinish coatings are high-solids solventborne. However, in
Europe, in compliance with VOC regulations, the basecoats in use are mainly
waterborne coatings. As environmental
regulations continue to become more
stringent manufacturers of automotive
refinish coatings continue to explore
waterborne and UV technologies.
“The market trend continues to be
conversion to waterborne systems,
spurred on by legislation or interest in
new technology,” said Eilenberger.
“Another key market trend is fewer
miles driven, because of gas prices,
which has led to fewer accidents.
Consumer trends toward smaller, more
economical cars will mean smaller collision repairs.”
“Moving forward I see oil prices stabilizing,” said Eilenberger. “However, I
believe U.S. consumers will stick with
smaller vehicle choices, but will
increase their number of miles driven
back to 2005-2006 levels.”
“For the next three to five years I
believe we will continue to see some
entrepreneurs leave the industry, but I
expect the trend to stabilize very
shortly,” said Eilenberger. “For the
next three-to-five years the industry
will see change with regards to technology, insurance relationships,
improved standards and growth of
Dream Car Garage, a popular Speed
Channel television show, recently
restored BASF’s 1957 Mercedes 300 SL
Gullwing. BASF’s 1957 300 SL is one of
only 76 built in the Gullwing’s last year
of production. This particular Gullwing
was originally shipped to Texas in 1957,
and in the ensuing years went through a
number of owners and color changes.
For the past decade, the Gullwing has
been kept in the lobby of BASF Coatings’
Southfield, MI headquarters. To maintain the integrity of the restoration, the
Gullwing was refinished in an original
1957 Mercedes color, using the waterborne Glasurit 90 line from BASF.
