Archive for category ADAS
Posted by "Just Sayin'..." in Acquisitions, ADAS, AGRR, aumotive after-market, Auto Glass, Auto Glass Networks, Autoglass, Business, Call Centers, customer, Disruption, Disruptive Innovation, Fleets, General, Innovation, Insurance, Service, state government, Technology, U.S. Govt., Uncategorized on August 20, 2019
Today the competitive landscape in the auto glass repair and replacement (AGRR) industry in the United States was dramatically altered. We saw this morning an announcement that Safelite, the largest company in the space, purchased the second largest company. As the clear market leader Safelite was perhaps 14+ times or so larger than TruRoad Holdings. By acquiring the companies that make up TruRoad and bringing them into the Safelite platform the gulf between Safelite and the possible number two AGRR company Glass America is even more gigantic.
You’d have to believe that auto insurers, fleets and even consumers would have a strong interest in ensuring that competition continues to exist for AGRR services. Insurers and fleets especially would have interest in seeing a strong national competitor emerge to keep pricing and service levels in check considering the market share Safelite controls. The prospect of building a true competitor and all that would be required to compete against Safelite in the marketplace would be an incredibly daunting task and in my opinion is highly unlikely considering the new competitive landscape in the AGRR space with Safelite acquiring TruRoad.
Baseball player and coach Yogi Berra was once quoted as saying when asked about the chances of the New York Yankees winning a pennant race one year, “It ain’t over til it’s over.” I’m sorry to say that competition in the AGRR space might be over. Welcome to the new normal.
Posted by "Just Sayin'..." in ADAS, aftermarket, AGRR, AGRSS, aumotive after-market, Auto Glass, Auto Glass Safety Council, Autoglass, Business, cars, Collision Repair Industry, Disruption, Disruptive Innovation, driverless car, Driverless Cars, ideas, Innovation, Leadership, OEM, Technology, Uncategorized on July 1, 2019
If you’re part of the automotive aftermarket repair industry you’ll find interesting an article titled “Car Safety Systems That Could Save Your Life” written by Mike Monticello (@MikeMonticello) for Consumer Reports. The article detailed a Consumer Reports study on vehicles with ADAS technology onboard and the effect it could have on your business. The study reported that, “ A majority—57 percent—reported that at least one advanced driver-assist feature in their vehicle had kept them from getting into a crash.” Considering that the study involved 72,000 vehicles the potential impact on the automotive repair industry in the years to come could be dramatic.
Mitchell International, an organization providing technology solutions to the insurance industry as well as automotive repair industry, reports that during the first quarter of 2018 the average gross collision appraisal value showed that the average cost of collision repairs was $3,512. When you then consider the Consumer Reports study showing that 57 percent of vehicles with ADAS technology managed to avoid a collision equates to 41,040 fewer vehicles needing repairs. The lost repair value would result in a revenue loss to the collision repair industry of $ 144,132,480. An amazing number considering the small overall size of the Consumer Reports sampling. Imagine the effect this lost revenue will have on the companies that supply the body parts, paints, auto glass and mechanical parts to the collision repair industry.
The Consumer Reports article goes on to explain that “48 percent for the 2019 model year, according to data compiled by Shawn Sinclair, CR’s automotive engineer for advanced driver assistance systems” have automatic emergency braking (AEB) systems. In 2018 “only 29 percent of new vehicle modes sold in the U.S. in 2018 had standard AEB”. Within the next few years it is expected that the majority of OEM car manufacturers will include basic AEB ADAS technology on new vehicles. Granted it will take a number of years for the automotive repair industry to feel the full effect of ADAS technology across the entire United States car parc of 289 million vehicles, especially with the average age of a vehicle in the United States at 11.8 years as reported by the web site statista. IBISWorld.com estimates that total United States collision industry revenues in 2018 totaled $ 47 billion.
You can just do the math to see what the ultimate effect of ADAS (Advanced Driver-Assistance System) technology across the entire car parc will have to the collision repair segment of the automotive repair industry. The effect to the companies that supply parts and services will also be just as dramatic. What is your company’s strategy to deal with the potential loss of revenue that ADAS technology brings because it’s coming?
Nationwide Windscreen Services – A Leader in Auto Glass Replacements of Vehicles with Advanced Driver Assistance Systems (ADAS)
Posted by "Just Sayin'..." in ADAS, aftermarket, AGRR, AGRSS, aumotive after-market, Auto Glass, Autoglass, Collision Repair Industry, Credibility, Disruption, driverless car, Driverless Cars, Leadership, OEM, self-driving, self-driving car, supplier, Technology, U.S., U.S. Govt., Uncategorized, Windscreens on July 6, 2017
If you’re in the automotive industry you’ll know that the complexities of Advanced Driver Assistance Systems (ADAS) technologies are being utilized on more and more Original Equipment Manufacturer (OEM) vehicles rolling off assembly lines around the globe. What does ADAS mean to drivers buying or leasing OEM vehicles? As an article published by the research and consulting firm McKinsey & Company titled “Advanced driver-assistance systems: Challenges and opportunities ahead” explains,
“Demand for advanced driver-assistance systems (ADAS)—those that help with monitoring, warning, braking, and steering tasks—is expected to increase over the next decade, fuelled largely by regulatory and consumer interest in safety applications that protect drivers and reduce accidents. For instance, both the European Union and the United States are mandating that all vehicles be equipped with autonomous emergency-braking systems and forward-collision warning systems by 2020. A recent McKinsey survey also suggests that car buyers are becoming even more interested in ADAS applications that promote comfort and economy, such as those that assist with parking or monitoring blind spots.”
Another article titled “Driver Assistance System Market to Grow..” that appeared in the online Digital Journal stated,
“Increasing government regulations such as mandating usage of driver assistance systems in the vehicle and emerging high-end vehicles market in developing countries has an important quotient in the growth of driver assistance system market. In the coming years, it is expected that the driver assistance system market will advance with higher growth rate as compared to previous years. The current challenges for the market are training the professionals on the software due to its complex and expensive features. Therefore, steadily changing process of manual workflow to digital workflow, will result in long-term benefit when the advance features of driver assistance system services are implemented and would be used on regular basis by various industries.”
Consumers buying vehicles with this technology onboard, who will require aftermarket services that could alter the original calibration of ADAS technology, will need to be aware of the importance of choosing service companies that are not only knowledgeable on these safety systems, but that also have service technicians equipped and proficient on the use of all required tools to ensure that the ADAS technology works properly. It’s critical that OEM car manufacturers, companies developing ADAS technology, governments, along with a myriad of automotive aftermarket service industries work together to ensure consumers are kept safe.
One aftermarket service organization in the auto glass repair and replacement (AGRR) industry in the United Kingdom is a leader in ensuring consumer safety. That company is Nationwide Windscreen Services (NWS). NWS began in 2006 and in just over a decade they have 70+ locations that provide auto glass repair and replacements, with 500+ mobile fitting vans and 600+ staff offering a 24/7/365 call center operation and service coverage to insurance, fleet and consumers across the United Kingdom.
NWS has taken dramatic steps to ensure that the replacements they do are done properly. On August 1, 2015, NWS opened its first ADAS center in Leicester, England, and Stuart Sole, Managing Director of NWS said:
“The windscreen of the future will no longer be a piece of glass protecting occupants from the elements and offering structural support for the vehicle, safety systems are being developed with driver aids to help avoid collisions and accidents. Advanced Driver Assistance Systems technology will manage the cruise control, automotive braking, adaptive lighting, GPS, smart phone, lane departure warning cameras, collision avoidance system. This technology continues to influence vehicle design at a great pace, with more and more of these systems being introduced onto new vehicles. NWS will continue to invest in future technology within the automotive glazing industry; ensuring that the NWS customer base continues to receive a market leading product in all areas of our business.”
Since opening their first ADAS service center in 2015, NWS has invested more than £ 300,000 (US$ 380,000 prox) to ensure that NWS provides proper calibration when required on replacements that have ADAS technology. Today NWS is fully capable of providing recalibration for replacements which require this service across their platform. NWS has been awarded the Lloyd’s Register Quality Assurance ISO 9001 for their processes.
I asked Philip Homer, Operations Director at Nationwide Windscreen Services, who has responsibility for developing the service delivery model at the company to answer a few questions regarding the commitment to the safety of their customers at the time of replacement and when recalibration is required:
- You’ve made a huge commitment to safety in time and treasure to ensure that you provide a complete drive-away solution when you complete a replacement for customers whose vehicles have ADAS technology. What drove you to decide to provide a solution internally versus utilizing the OEM dealer network after you replaced a glass where ADAS was involved?
Answer: A one stop solution for the driver and vehicle down time, standardised pricing throughout the United Kingdom. Assurance for fleet and insurers that the vehicle has been calibrated following a replacement.
- I’m sure that you spent a great deal of time researching the best solution for your customers. What is the name of the recalibration system that you chose and what were the main reasons you chose their equipment?
Answer: Hella Gutman – We feel their system is the most practical available at present providing a solution for static or dynamic calibration. The equipment also prints off a certificate to confirm a successful calibration.
Hella also provide training for our technicians at their facility in Banbury Oxfordshire, once completed the technician is also issued with a certificate to confirm that they have attended a training session and competent in how to use the equipment.
- Are you able to complete recalibration with the Hella Gutmann equipment that you’ve chosen on all vehicles in your marketplace?
Answer: Approximately 75% of vehicles requiring some attention can be calibrated using the equipment we use.
- Within the United Kingdom are there AGRR installation and/or automotive recalibration standards that have been determined and approved by a governing body that your company follows?
Answer: We are not associated to any governing body but do feel we have considerable experience in the field as we were the first to market in the UK.
- You’ve received the Lloyd’s Register Quality Assurance ISO9001 rating. What does this mean to your company and staff?
Answer: We have been accredited by Lloyds QA for over five years and our team are very proud of this accreditation. We are currently working towards ISO9001 // 2015.
- Do you provide recalibration services at each of your centers? Do you also provide the service on a mobile basis?
Answer: We currently have twenty sites across the UK and during 2017-2018 we are planning additional sites in strategic locations
- What is the time required for completing recalibration – shortest, longest and average?
Answer: Approximately forty-five minutes for static or dynamic calibration.
- Do you charge customers for recalibration? How much do you charge for a recalibration? Are you able to bill insurance and fleet customers for this service or do the customers pay for the recalibration directly?
Answer: Our standard price is in the region of £130.00 (US$ 165.00 prox) plus vat. We have a number of billing routes into insurance or fleet customers
- When you complete a recalibration is it always 100% effective? How do you know that a proper recalibration has been completed?
Answer: We have had a small number of unsuccessful calibration. This has been largely down to the relevant software release. In the event that we are unable to recalibrate we would advise the driver to take their vehicle to a franchised OEM dealership.
- NWS is committed to providing this service to your customers. For those companies in other parts of the world who are interested in providing a similar service to their customers and wonder what the return-on-investment is, can you tell me how long will it take you to get a return on your investment?
Answer: Provided you have access to the vehicle park you should have no problem in obtaining an ROI in under 12 months.
- Do you provide this service for other AGRR companies that you compete with or does NWS make the service available solely to your customers?
Answer: This is under discussion now as we feel if has further potential.
- ADAS has been called an interim technology. Do you feel this is the case and, if so, what do you think will replace it?
Answer: We have been informed that the technology is at stage three and the vehicle manufacturers or those providing the equipment are aiming for fully autonomous vehicles which would be stage five.
- How have you been able to determine which makes and models require recalibration?
Answer: Manufacturers with an ADAS enabled windscreen, but on several occasions they aren’t activated or the camera mounting has been blanked off. We feel that the best identification point is by the technician during installation
- How do you handle makes/models where the vehicle owner is instructed to only use the OEM car dealership for calibration?
Answer: We have a robust process in place to organise any calibration should we need to use a franchised dealership. However, we would always recommend a calibration to be carried out during the glass installation to avoid any inconvenience to the driver.
- How knowledgeable do you find consumers are about ADAS and the need for recalibration?
Answer: Their understanding is gaining momentum largely due to the vehicle manufacturer selling the driver aid technology as a safety feature
- How have you educated your insurance and fleet customers, as well as consumers of the importance of proper recalibration of ADAS after you’ve completed a replacement?
Answer: Yes, we feel have taken an active role in educating the insurance and fleet sectors. We have presented to number of customers and a “best practice” session at the 2016 Fleet Management Live event at NEC in Birmingham.
- Are there any learnings from your experience with providing a complete ADAS solution to your customers in the United Kingdom that you can share with other auto glass companies interested in recalibration systems?
Answer: Good technical support is the key to successful calibration in the initial stages of use.
Thank you for taking the time to answer the questions that I’ve asked today Philip. The commitment that Nationwide Windscreen Services has made to customers they serve is highly commendable and provides a roadmap to AGRR companies that are looking to provide an ADAS solution for vehicles with this technology that requires recalibration after the installation. The commitment that NWS has made in investing in calibration equipment, employee training and facilities allowing the company to deliver a complete ADAS solution to is highly commendable and delivers a strong statement that safety is paramount to their customers. Congratulations to you and your company for being a leader in the industry.
As more and more OEM vehicles have ADAS technology onboard we need to ensure that aftermarket automotive companies are fully prepared to properly recalibrate vehicles they service if recalibration is required. The consequences could be life or death for consumers when an automotive aftermarket company provides service and doesn’t recalibrate the vehicle when required. Is your company taking the proper steps to ensure that you’re fully prepared?