ARRIVE THINGS TO THE SH MONTH ES NEXT TOCOME HAPE OF ALVES ANKSHAFT SENSORS AND EGR V T & CR MAP : CAMSHAF T : MAF/ LAMBDA : NOx : EG The No.1 magazine for automotive information OCTOBER 2023 www.aftermarketonline.net INSIDE Unlocking workshop potential P24 ALLDATA Europe shows how the right software can really unlock the potential latent in an independent garage A month in the life of a vehicle tech P28 Frank gets tangled up in a Skoda Fabia wiring conundrum, and he finds that when one door closes, a window opens… The shape of things to come P30 Niterra UK looks at future developments heading your way, and what they will mean when they hit the workshop NEW FOR 2024: AFTERMARKET EVENT – TURN TO PAGES 14-15 FOR DETAILS
HUNTER WHEEL ALIGNMENT BOOST YOUR PROFITS WITH Find out more about Hunter workshop equipment at Pro-Align pro-align.co.uk | 01327 323 007 Identify workshop opportunities in seconds Approved by world leading OEMs Boost customer satisfaction and first-time fix rates Seamless integration with your data management system Backed by industry leading aftersales support Book a demonstration today: 01327 323 007 Call us today to discover more. Wheel alignment equipment is one of the most profitable revenue-generating opportunities in the aftersales sector. Around seven-in-10 cars on the road today are misaligned and those workshops that are properly equipped to diagnose and fix these are already benefitting from the sizeable revenue and profit opportunity. Alignment servicing frequently returns profit margins of around 88% and with the right equipment, your workshop can slash repair times and labour costs while increasing customer satisfaction and retention. With the Hunter Elite TD, your workshop can accelerate your service delivery to provide an accurate wheel alignment assessment in just 70 seconds, from start to finish.
www.aftermarketonline.net OCTOBER 2023 AFTERMARKET 3 CONTENTS BUSINESS 8 Big issue: Rise of the machines 12 Adam Bernstein: Incorporate in haste, part 2 16 Halfords: New business models 18 You down with OCPP? 20 Call tracking: The time is now TOP TECHNICIAN/TOP GARAGE 22 Top Technician 2023: Semi-final 26 ALLDATA Europe: Unlocking potential TECHNICAL 26 Aftermarket of the future 28 Frank Massey: A month in the life 30 Niterra UK: Shape of things to come 32 TotalEnergies: Getting to green 34 Repairify: Twist in the tail-gate IN FOCUS 36 Exhaust system and DPF 40 Timing systems 42 Wipers 44 Batteries and chargers 48 Tyres and tyre bay PLUS... 52 Competition/General products 54 On the road: Ring/OSRAM van 56 Garage visit: Hunters of Linlithgow 58 EV workshop from design to delivery 60 EVs and hybrids 62 Training update 64 Recruitment 66 Teabreak MAKE IT SO Alex Wells, Editor Average net circulation July 2021 to June 2022 19,073 @aftermarketmagazine @aftermarket01 @aftermarketmagazine ISSN 2516-9149 Aftermarket is published 10 times a year and is sent free of charge to applicants meeting the publisher’s criteria. All others may subscribe at £60 per anum, £120 Europe and £150 rest of the world. While every care is taken to provide accurate information, the publisher cannot accept responsibility for any errors or ommisions, no matter how caused. All rights reserved. No part of the publication may be reproduced or transmitted in any form or by any means without prior consent of the publisher. The views of contributors do not necessarily represent the views of the publisher. Copyright: DFA Media Group 2023. As you will already know, London’s Ultra Low Emission Zone (ULEZ) was enlarged to take in all of Greater London on 29 August. It now costs £12.50 for a non-compliant vehicle to move within Greater London, with fines if the driver does not pay. Of course, the raw cost to the motorist is not the end of the issue. It’s the unexpected consequences that will be the kicker. Higher cost of deliveries for businesses? Motorists perhaps opting to get around the cost by shaving expenses elsewhere, such as servicing, which will have an impact on road safety and, oh yes, air quality. I wonder if anyone at the Gherkin thought of that? Unfortunately, this piece of legislation, lauded and decried in almost equal measure, isn’t going anywhere for a while, and is likely to be a permanent fixture. Then of course, there is the impact on garages and the wider automotive aftermarket. “By Riker’s beard!” I hear those of you in the London-based readership cry, tastefully substituting some of your more, er, shall we say, colourful metaphors. “This is a massive problem for us and our customers! How are we going to deal with this:” As you will see in the news section on pages 4-7, the IGA and its sister organisation the NFDA both had meetings with Transport for London (TfL) shortly before the new rules came into force to ask these very questions, and more. This will rumble on for some time. My last observation on the topic is this. Considering the rate of natural wastage in the car parc, surely within a few years many of the offending vehicles will remove themselves from the roads as they are replaced by newer vehicles, thereby eliminating the problem at no cost to the taxpayer, and with no need for a scrappage scheme? Too on the nose? Well, let’s see what happens when other cities get in on the act. Down here in Brighton, since the mid-00s I have been amazed they haven’t tried a congestion charge zone like London, as the L-shaped stretch between the main station terminus and the Palace Pier pretty much invites such a scheme, and with most of the main car parks based in this area, they could fleece all the unwary day-trippers and shoppers. There’s also a pretty-much imaginary ULEZ supposedly already operating in North Street, so let’s see if they have a go at actualising, monetising and weaponizing it. Some are further ahead. As this issue was going to press, the Welsh government imposed 20mph speed limits across many of its roads. Whatever happens, by the time the new-for-2024 Aftermarket Event, comes to Farnborough International next October, we will all have plenty to talk about. As I explained last month, this will offer visitors 150 exhibitors as well as twin live arenas serving up technical information, training and debate. For more information, go to pages 14-15. Lastly, don’t forget that the Top Technician and Top Garage Finals are coming up on Saturday 14 October, with the Awards Evening taking place that night. Turn again to news on pages 4-7 for more information. Enjoy! Editor | Alex Wells alex@aftermarket.co.uk | +44 (0) 1732 370 345 Head of Sales | Angela Lyus angela@aftermarket.co.uk | +44 (0) 7823 736 629 Managing Director | Ryan Fuller ryan.fuller@dfamedia.co.uk | +44 (0) 1732 370 340 Contributors Karl Baker | Andrew Bates | Adam Bernstein | Harry Bott | John Bramley | Brian Estrada | Neil Kennett | Frank Massey | Martin Pinnell-Brown | David Valentyne Operations Manager | Emma Floyd emma.floyd@dfamedia.co.uk | +44 (0) 1732 370 340 Marketing Executive | Hope Jepson hope.jepson@dfamedia.co.uk | +44 (0) 1732 371081 Finance Department accounts@dfamedia.co.uk | +44 (0) 1732 370 340 Chief Executive | Ian Atkinson ian.atkinson@dfamedia.co.uk | +44 (0) 1732 370 340 Published by | DFA Aftermarket Media Ltd 192 High Street, Tonbridge, Kent, TN9 1BE
NEWS London’s Ultra Low Emission Zone (ULEZ) expanded on 29 August to take in all of Greater London. The controversial move has been both welcomed on environmental terms and widely criticised due to the potential economic impact, which could be felt both within and beyond its perimeter. Looking to highlight the potential impact on motor sector businesses, just before the expansion took place both the IGA and NFDA met Transport for London (TfL). Topics discussed included the impact the £12.50 per day fee could have on motorists, which the IGA suggested could hamper vehicle owners seeking MOTs, servicing, and repairs from independent garages. The £160 million ULEZ scrappage scheme was also discussed, along with the funding TfL is offering for vehicle owners to retrofit vehicles to get them up to Euro 6 standards. Here, the IGA also made their concerns known due to the fact that there is only one approved parts supplier for the whole area. IGA CEO Stuart James said: “Whilst we wholeheartedly support the need to protect health and provide clean air for the people of Greater London, we must not lose sight of the fact that businesses and livelihoods need to be considered. Our meeting with TfL was a step towards highlighting the concerns of independent garages. Protecting the environment is important, but we must find ways to strike a fair balance between environmental goals and the economic wellbeing of local businesses and individuals.” The NFDA pointed out that up until that point, only 40% of the available scrappage funding had been used, and pushed TfL for more information about how motorists can access these funds and how they will be distributed. The NFDA also brought up media reports of some local councils not putting up suitable charge zone warning signs. NFDA Chief Executive Sue Robinson added: “Whilst the NFDA believes that environmental consciousness and public health are vitally important, the ULEZ's impact on businesses and drivers must be thoroughly evaluated to avoid unintended consequences that could negatively affect the London economy and impact some of its least affluent residents. We have called for ongoing dialogue with TfL to find equitable solutions that achieve emission reduction goals without disproportionately burdening businesses and drivers." 4 AFTERMARKET OCTOBER 2023 www.aftermarketonline.net ULEZ: Sector concerns raised with TfL MOTUL-Nismo Gran Turismo partnership MOTUL took to the big screen this summer in Gran Turismo, a film based on the story of Jann Mardenborough. He made the leap from playing the Sony PlayStation racing game to becoming a racing driver via a global competition put together by Sony, Gran Turismo game developer Polyphony Digital and Nissan. Since his 2011 GT Academy victory. Jan achieved a podium finish at the Le Mans 24 Hours in the LMP2 Category in 2013, and has raced ever since. Andy Wait, MOTUL UK Sales and Marketing Manager, commented: “NISMO – the motorsports division of Nissan, has long been an OE Partner of Motul, and with Nissan providing both the means to Jann Mardenborough’s move to professional motorsport and many of the cars he has driven in his career to date, it was logical that MOTUL would be a part of the Gran Turismo story.” To view the trailer, visit: www.youtube.com/watch?v=GVPzGB vPrzw
MONTH 2017 AFTERMARKET 3 www.aftermarketonline.net OCTOBER 2023 AFTERMARKET 5 Top Technician/Top Garage 2023 finalists The finalists for Top Technician and Top Garage 2023 have been named. Top Technicians’ finalists, who will be returning to the Delphi Academy on Saturday 14 October for the final, are as follows: David Weston, Kia UK, Surrey George Bettley, Crewe SEAT, Cheshire Jack Richards, Millers Garage, Berkshire Simon Parkinson,Motolec, Lancashire Mark Sturgess, Keen and Betts, West Sussex This group will face a range of 50 minute technical and diagnostic challenges set by the judges. At the same time, businesses in a range of size-based classes will also be facing the Top Garage judges at the Delphi Academy. With them will be individual employees taking part in the Top Service Advisor Award, as well as businesses competing for the brand-new Workplace Health and Wellbeing award, which is being run in association with Ben. The finalists are as follows: Businesses with 1 to 3 employees: A&J Fleetcare Alga Garage Bectec Vehicle Repairs CM Automotive Bristol Drive Green Vehicle Services Hutchings Vehicle Services John Hall Auto Electrician MMS Technik The Garage Warmington WJH Auto Businesses with 4 to 6 employees A1 Autocentre AJ Automedics CT Cars Links Automotive Maitland Motors Shires Garage Auto Services Businesses with 7 to 9 employees Auto Works Service Centre Beverley Motor Works Billingborough Cars and Commercials Bryan Swales Auto Repairs CSN Autos Cleevely Motors E&M MOT & Service Ewan Lawson Motors P Breading Motor Services Ramsey Hill Garage Robert Cockings Motor Repairs Businesses with 10+ employees AAK Autos Service Anderson Clark Motor Repairs D&D Autos (Ashford) Express Motor Workshop Fitch Autos Jackson & Phillips Automotive Services Oldfields Garage Services QCD Autocentres Milton Keynes Ruellans Garage Uckfield Motor Services Multi-site businesses CCM HiQ Tyres and Autocare Ipswich Shaikly Motor Company Rowes Honda Top Service Advisor Adrian Bird: Alga Garage Jessica Cobbold: Billingborough Cars & Commercials Terry Felstead: CSN Autos Sharon McCormick: CCM (Ewhurst) Amanda DiFrancescomarino: CCM (Gatwick) Connor Blanning: CM Automotive Bristol Sam Brown: HiQ Tyres and Autocare Ipswich Daniel Anthony Noel-Johnson: Rowes Honda Plymstock Michael Meaker: Shires Garage Auto Services Miriam English: Torque Monkey James Wheatley: Uckfield Motor Services Wesley Heimann: WJH Auto Ltd Workplace health and wellbeing; In association with Ben AAK Autos Service Alga Garage Billingborough Cars and Commercials CSN Autos CM Automotive Bristol Maitland Motors MMS Technik Ruellans Garage The winner and runner-up in Top Technician, as well as the winners in Top Garage will be named later that day at the Top Technician and Top Garage Awards Evening being held at the DoubleTree by Hilton Hotel in Coventry. Top Technician and Top Garage 2023 come to you in association with the Garage Equipment Association (GEA), the Independent Automotive Aftermarket Federation (IAAF) and the Institute of the Motor Industry (IMI). Full Event Partners: Snap-on, TOPDON, TechMan, Delphi Technologies, BookMyGarage, ALLDATA Europe, TPS and MOTUL. For a full report on the Top Technician semi-final go to pages 22-23. Full Event Partners: www.aftermarketonline.net
NEWS 6 AFTERMARKET OCTOBER 2023 www.aftermarketonline.net Excitement is beginning to build across the industry following the announcement of Aftermarket’s new show designed for the automotive aftermarket, that is set to open its doors for the first time next October. Suppliers across the sector are looking to find out more about Aftermarket Event, which will be held 2-3 October 2024. The show will include up to 150 exhibitors from across the sector, with 50 speakers offering up comment, opinion and information across two dedicated theatres themed around the Top Technician and Top Garage competitions. The event will also be co-located with another show, Safety, Health & Wellbeing Live. This will mean Aftermarket Event visitors can also learn more on recent progress around workplace safety and occupational health. Aftermarket Event is taking place at Farnborough International on 2-3 October 2024. For more information, visit: www.aftermarketevent.uk Anticipation grows for Aftermarket Event IMI There’s More to Motor campaign launches The IMI has launched its digital campaign, There’s More To Motor, across the UK to change the perception held by school leavers and graduates regarding the motor industry. Those who engage will be directed towards employers and recruitment agencies offering vacancies in their area. IMI CEO Steve Nash commented: “There are currently 218 occupations across the sector, with technological advances, from ADAS and electric to connected motoring and online sales, creating opportunities that go far beyond traditional perceptions of working in automotive. Our new campaign highlights the career opportunities that exist for individuals, whether at the start of their working life or looking for a change in direction.” The campaign has coincided with the release of the IMI’s latest Automotive Labour Market Briefing which shows a slight improvement in job vacancy rates. 24,000 vacancies were on offer when the Briefing was released last month, compared to 26,000 at the start of the year, although the sector still fields a vacancy rate 34% higher than the average across all other industries. All automotive occupations saw increasing job vacancy postings, peaking at the start of Q2 2023. The most indemand professions are Vehicle Technician, Mechanic and Electrician, up 32% year-on-year. Steve Nash added: “We have noticed that management, leadership and sales skills are less frequently requested now than a year ago, with a greater number of vacancies focused on core skills. It could be that this reflects a fall in the number of management roles advertised, but it could also simply be because of an urgency to fill roles that require those core skills. Also reflecting the urgency is the rising number of postings for apprenticeships, as well as increasing salaries.” Straightset becomes Beissbarth UK partner Straightset has become the UK partner for Beissbarth. Through the new partnership, Straightset will be offering Beissbarth's wheel alignment range, including its 3D wheel alignment systems, alongside its existing Supertracker wheel alignment offering. Straightset has also appointed Nick Lauff as their dedicated Wheel Alignment Specialist offering demonstrations, technical advice, and expertise. He said: “After representing Beissbarth in the UK for over 30 years, primarily in sales, I am excited to be joining a well-established and respected company in Straightset, as their Wheel Alignment Specialist, who want to give Beissbarth the UK platform it so richly deserves.” Follow us on Facebook @aftermarketmagazine
NEWS www.aftermarketonline.net OCTOBER 2023 AFTERMARKET 7 OESAA Academy Live hits Liverpool Liverpool’s Hugh Baird College will be hosting the next OESAA Academy Live event. The event will be held across Wednesday 4 October and Thursday 5 October. Headlined by GSF, the event will also include Banner Batteries, DENSO, Laser Tools, MAHLE Aftermarket, Schaeffler, VARTA, Brembo, HELLA, Bosch, Dayco, Fil Filter, ZF Aftermarket, and Garage Online Services On the Wednesday evening, OESAA members will be in the workshop arena, with visitors able to access on-stand presentations, live demonstrations and more. There will also be training classrooms designated to various OESAA members, with video game console giveaways and food and refreshments on offer. On the Thursday morning, OESAA members be at the colleges offering sessions for students. OESAA Chairman Nigel Morgan said: “After three successive OESAA Academy Live events rolled out at the start of the year, we’re delighted to return with new dates, locations, and an adapted format. I am confident our trade evening will inspire the audience.” He added: “The student days have been invaluable to us; the energy and passion shown, as well as the apprentices’ existing knowledge, was encouraging. It demonstrated that there is a genuine appetite to learn and create a career in this fantastic trade.” There is no need to sign-up to OESAA Academy Live. Visitors are Ben recently launched a month-long campaign centred on suicide prevention, with content including downloadable resources, contact details for further support and information on training and services for employers available in a new section of the website 126 people die by suicide in the UK every week, 74% of them being male. With the UK automotive industry having a 80%/ 20% male/ female split, the sector could have a greater risk and vulnerability to suicide than in other industries. In 2022, Ben supported 303 individuals who disclosed they were having suicidal thoughts. Meanwhile, around seven employers each year contact its Urgent Response Service after an employee has taken their own life. Rachel Clift, Health & Wellbeing Director at Ben, said: “Research and statistics should give us cause for concern in our industry, coupled with the fact we currently have more people than ever requesting support. This is why it’s crucial to raise awareness about loss of life through suicide, as it’s a difficult topic to broach. We want everyone in our industry to know that Ben is there for them and urge people to get in touch for support if they’re struggling or in crisis.” To access the new suicide prevention support available from Ben, visit: www.ben.org.uk/suicideprevention Suicide prevention support IAAF signs up to global automotive Right to Repair movement The IAAF has become part of the global Right to Repair movement, signing a new right-to-repair position statement alongside other worldwide automotive trade associations that sets out ten bestpractice principles to develop a framework for right-to-repair legislation for any country. IAAF Chief Executive Mark Field said: “By joining this global Right to Repair movement, the UK aftermarket is united in a common goal to ensure competitive choice for the motorist. This fight is ongoing, and we have ambitious plans to raise awareness of motorists’ rights and highlight the brilliance and choice the sector offers in vehicle service and repair.”
8 AFTERMARKET OCTOBER 2023 BIG ISSUE www.aftermarketonline.net Last month, in part one, we considered the growing influence artificial intelligence (AI) is likely to have on the sector. In this issue, we are looking at how it is likely to affect garages on a day-to-daybasis. According to Laurence Abbott, Autotech Group’s Marketing and Technology Director, there are aspects of AI that could be advantageous for garage businesses: “While the role of a vehicle technician or MOT tester may not be superseded by AI, incorporating technology and assisted reality into a garage or workshop to supplement skills and streamline business processes will become increasingly prevalent.” Indeed, the company recently formed a new division in order to help bring this kind of new tech within the reach of garages. Laurence explained: “One of the reasons we founded our Autotech Connect division was to help the aftermarket effectively implement technology into their businesses, not only to counteract the growing risk of cybercrime threats, but to utilise technology in the workplace and help them innovate and flourish in a connected age. Transforming mobility Laurence continued: “It’s no secret that technology is transforming mobility. As software-defined vehicles enter the market and the proliferation of connected vehicles continues, consumers are increasingly expecting their cars to be an extension of their smartphones. While this brings a need for a robust digital infrastructure to protect against potential cyberattacks, it is also having a knock-on effect on automotive skills and knowledge, pushing the aftermarket even further when it is already suffering from a depleted pool of talent. Without doubt, training remains important, particularly as the industry evolves from repairing ICE vehicles to electric/hybrid and hydrogen powered cars. “As drivers adapt to more efficient modes of vehicle technologies, we will undoubtedly see the role of the vehicle technician irrevocably shift and those quipped with knowledge around ADAS and the ability to resolve software-related issues will be in high demand. While vehicles might have fewer moving parts, there will be an extra layer of complexity and implementing technology will increasingly become commonplace.” There is a range of technology that could help garages as far as Laurence is concerned: “The use of assisted reality devices for example represents an exciting opportunity to help streamline processes and empower vehicle technicians, since the most up-to-date technical information they need will be right in front of them. Once a major concern that it would take jobs away from humans, this type of technology has proven to be a lifesaver in other industries as it helps PART TWO AI: RISE OF THE MACHINES? Aftermarket’s look at the potential impact of AI on the garage sector concludes with a further examination of how tech could affect garages
Only the right partner gives the right solution. Poly-V Belt Timing Belt www.dayco.com Dayco, the full system supplier and partner of choice of the world’s leading vehicle manufacturers. Fit Dayco with confidence and give your customers the aftermarkets OE solution.
to lessen workloads, supplement skills, and increase resources.” Laurence added: “While AI won’t replace the role of a vehicle technician, the role will evolve and be enhanced by AI and technology. It’s an exciting concept to a young person on the cusp of starting their motor industry career and we need to get better at conveying how their digital skills can be utilised within the sector. The competition to attract and retain talent is still fierce and we should be showcasing the progression of the industry, including the growing use of technology and AI to motivate young people and inspire them to forge a career within the aftermarket.” Significant technological development Ray Dilsons, Managing Director of Garage Hive, said: “Artificial Intelligence represents one of the most significant technological developments of the 21st century. It has the potential to play a significant role in the way an efficient business operates, which is why we’re currently exploring these new-found capabilities to consider possible future enhancements of Garage Hive.” According to Ray, wider developments in the market are helping blaze the AI trail for businesses in the sector: “Powering Garage Hive is tech-giant Microsoft. Garage Hive users have long benefitted from Microsoft-developed system updates. Now, with the launch of Microsoft Dynamics 365 Copilot earlier this year, Garage Hive is AIready. Microsoft Dynamics 365 Copilot provides interactive, AI-powered assistance to reduce repetitive tasks in sales, service, marketing and operations. It has the potential to simplify the workflow in data exploration and audience segmentation and can even offer highly personalised email campaign inspiration. Crucially, all future AI integrations within Garage Hive will fall within Microsoft’s framework for the safe deployment of AI technologies. Microsoft has been working to build a responsible AI infrastructure since 2017 and has invested in a cross-company program to ensure its AI systems are safe.” Ray added: “These recent advancements in generative AI have the power to automate repetitive and labour-intensive tasks such as manual data entry.” Outside the box As far as the IAAF are concerned, steps taken by the wider automotive industry to introduce AI-based technology will change the way the aftermarket works. “With the increasing digitalisation of a vehicle, there are multiple ways that AI is already being implemented to assist in diagnosis, service, and repair,” said Neil Pattemore, IAAF Technical Director at IAAF. Connected car technology has already featured AI for some time, but there remain questions over the future effect of AI on the fundamental operation of garage businesses. Neil continued: “Remote access to the vehicle and its dynamic data is using embedded applications that interact with off-board server data analytics to monitor and predict such things as driving style, potential component failures, and service and repair needs “On newer vehicles, there’s loads of data generated by the car when it’s being driven. Rather than all the data being transmitted over the air, it’s first processed incar and then the pertinent results are sent over the air for deeper analytics by the vehicle manufacturer’s server farms. “Embedded apps will monitor the car for developing faults, or offer drivers suggested routes based on recognising patterns such as commutes, but also forecast servicing requirements for components like tyres, brake pads and oil, based on the monitored driving style of individual drivers. This data is exchanged with a back-end server that uses AI to predict the requirements and subsequently create a quotation for garages, but also creates the program for the workshop to work on the vehicle. This is a good example of efficiency and cost benefits from the use of AI, but also raises the question of who is controlling this remote activity and the benefits it supports.” Full and direct access Neil went on to say: “The IAAF has lobbied for full and direct access for the independent aftermarket to vehicle generated data as part of an open and competitive marketplace where motorists have choice over how, where and by whom they can get their vehicle serviced or repaired.” “An AI-generated work program impacts workshop repair and the ability to prepare the workshop before a car arrives. A diagnostic tool that once plugged into the vehicle’s OBD port, is in effect now in the car and data is transmitted over-the-air. Whoever generates that outcome controls the repair process, which raises issues as competition and independent innovation, which becomes more restricted and difficult if it is only one dominant service provider.” Neil added: The impact of artificial intelligence need not be totally feared, as the inherent need for faceto-face services will mean businesses cannot fully transition to an AIpowered workforce. From the beneficial aspect, will the nature of the work across the board mean human ingenuity will always be required, thinking front of house as well as the workshop. Yes, most likely, for as long as vehicles transport people and goods, there will always be the need to think outside of the box.” Standout As Frank Harvey, Head of Member Services at the IGA observed, many digital services we take for granted already fall under the AI category: “Is AI already here? We have been living with machine learning for well over a decade, from Google Translate, to facial recognition on our phones, but what does the future hold with AI for independent garages? With the skills shortage in the sector, does AI have a role to play? Will AI, via robotic interfaces, be able to repair vehicles? All I feel are valid questions but who knows what the future holds.” He continued: “The standout feature with most independent garages is the personal service they offer to their customers, it’s not uncommon for many generations of a family to use the same local garage, so how would AI fit with that? One thing we know for sure is, rarely are two repairs the same, which is likely to make it difficult for AI robotics to facilitate the actual repairs, however, could AI have a part to play in vehicle diagnostics? I for one, wouldn’t want to be dealing with a computer for having my 10 AFTERMARKET OCTOBER 2023 BIG ISSUE www.aftermarketonline.net “There are multiple ways that AI is already being implemented to assist in diagnosis, service, and repair” ”
OCTOBER 2023 AFTERMARKET 11 www.aftermarketonline.net vehicle fixed; I want to talk to an expert that can decipher the problems I might be experiencing and to answer some of my questions or concerns.” Garages have been dealing with increasing vehicle connectivity for some time now, with benefits and challenges from both ends. This is only going to continue: “With the advent of connected cars, remote diagnostics is, to a certain degree already with us, but wide scale vehicle connectivity, open to all, could have far reaching implications. Access to security related diagnostics and repairs would need to be strictly policed and there is the ever-present fear or threat of vehicles being hacked for personal data or even taken control of remotely. While all this is possible, does it mean it is probable for small independent garages in the short to medium term? “Another possible AI intervention could, according to some, be with front of house or parts procurement, but I refer back to my earlier comment, that personal touch is what enhances the whole experiences with independent garages. As for parts procurement, AI might be able to search, in seconds, a plethora of suppliers to find the available part at the best prices, but again we all know from experience, that getting the right parts isn’t always that simple.” Frank concluded: “Does AI have a role in the independent garage sector? Quite possibly, but the investment required may exclude many, and so delay AI being adopted, but never say never. Look at the changes we have seen in the sector over the last 25 years. Who knows for sure what the future holds?” Final thought With all the myriad functions that AI can take on, at least you know for sure that the final thought in Aftermarket’s Big Issue section will have been written by its Editor, following some reflection on the points raised in this two-part article. Do you know that for sure though? I am fairly certain that if I fed the right question into ChatGPT along the lines of “Provide an overview comment on the potential impact of AI on businesses,” it could produce something pretty close to what I am toiling over as I type right now. However, I don’t think I want to end the article that way. It’s not just sheer self-preservation at play either. What would be gained by me doing it that way? Nothing. It would be a poor use of a tool that has many uses. The tools exist. Great. Now we need to understand them and learn to use them to our advantage. Businesses and individuals are going to have to work out how to integrate this technology into their working lives. Through AI, perhaps there is a better way, and maybe there isn’t, but it would be interesting to find out. If I can learn how to integrate AI into my very old-fashioned approach to work, I’m certain you can too. www.aftermarketonline.net
As we saw last month, company tax law is a quagmire waiting to entrap the unwary. In this concluding part, another accountant offers his advice to staying out of trouble. This issue, we speak to Kieron BathamTomkins, Senior Tax Manager at accountancy firm, BHP. Payroll and paperwork Kieron Batham-Tomkins sees clients who don’t understand that on top of Companies House and HMRC filing requirements there’s the detail and “obligations of running a payroll and the need to complete paperwork such as dividend vouchers.” “Directors,” as Kieron points out, “with a limited company as the working entity, will be extracting profits via salary and dividends, and in order to pay salary, some form of payroll system will be required which allows Real Time Information to be sent to HMRC and provides a payslip each month, along with a P60.” He adds that “when declaring dividends, it is also important to make sure that paperwork is completed with regards to board minutes and dividend vouchers.” Of course, most owner managers do this at home. Regardless, he reminds that “the paperwork still needs to be on file to show that a decision was made on a set date to declare dividends and extract remuneration.” Not checking tax rates Another problem area for Kieron is the lack of tax planning when directors pay themselves. He knows that as a rule of thumb, the most tax efficient way of extracting profits from a company is via a NI level salary and the remainder being extracted as dividends. By ‘NI level salary’ he’s referring to a level of salary where no employee National Insurance arises, but where the individual will still receive a stamp towards their state 12 AFTERMARKET OCTOBER 2023 BUSINESS www.aftermarketonline.net INCORPORATE IN HASTE AND MAKE MISTAKES AT LEISURE Part two: The rundown on how to avoid problems around how your business is set up concludes with more handy advice BY Adam Bernstein
OCTOBER 2023 AFTERMARKET 13 www.aftermarketonline.net # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # PRODUCT GROUPS IN 8 WIDE RANGE automotive parts Remanufactured RING LS ECONOMY AR PART OF A CIRCUL FACTUR USED IN REM 96% LESS RAW MATERIAL OE MATCHING QUALITY ANUF P ! ! $ $ & $# " $ % $ ! $ $ " $ $ % $ % % $% " $ " " % $% $ ! % " $ $ " %" "$ " $ " ! % " " % !$ $ % " " $ "$ % $ &%$%"! % ! $% " $ % " pension. Kieron explains that with a NI level salary “the company will also receive a corporation tax deduction for the salary paid, unlike dividends which come out of post-tax profits – a potential saving.” But there are other considerations beyond a NI level salary for those extracting monies from a limited company says Kieron. He refers to the relevance of the state pension age. Here Kieron says that “if an individual is over state pension age and therefore at a point where no employee national insurance is due, then they should run calculations as to whether salary is more efficient than dividends.” Lastly, Kieron advocates keeping an eye on ever changing tax rates. Specifically, he says “it is always worth taking advice or running calculations to check that the rule of thumb is still most tax efficient.” Trivial benefits add up Another mistake that Kieron sees directors – and their companies – often making is the failure to use the trivial benefits exemption. Effectively, under the exemption, a director can receive six lots of £50 gifts from their company each year with no tax implications. But there are rules to observe and Kieron details that “the gift cannot be cash, or a cash vouchers, and it also can’t be a reward for service or performance, but as long as there are six reasons throughout the year then the company can provide a director with up to six gifts throughout the year - completely tax free.” What happens at the end? Kieron says that as a sole trader, it can be relatively straight-forward to end a business as “all income was taxed as it was earned, leaving the individual to just ‘walk away’ from it.” But the situation is very much different for a limited company. Here he says that “thought needs to be given on how the company may be wound up.” He asks: “Can the company be sold? Is it going to be passed to the next generation? Has the company come to an end and if so, how are funds going to be extracted - by dividend or through liquidation?” From his perspective, too few company owners think about the end game in good time and so either lose value, pay too much tax on the exit or both. The right advisors Kieron moves to his final point - making sure that company owners have the right advisors in place to offer the most up to date and bespoke advice for them and their business. He’s naturally biased, but nevertheless says that “having the right advisors at the right time can help save tax upfront, down the line, and helps avoid any pitfalls that come with running a company.” As he says, “in the fast-paced world in which we live, what can be sound advice today, might not hold true in six- or 12-months’ time.”
ALL UNDER ONE ROOF DIAGNOSTICS, TRAINING, TOOLS, TECHNOLOGY & WELLBEING DEDICATED TO THE INDEPENDENT GARAGE & BODYSHOP SECTOR (combined events)
Ryan Fuller Managing Director T: +44 (0) 1732 370340 M: +44 (0) 7720 275097 E: ryan.fuller@dfamedia.co.uk Angela Lyus Head of Sales T: +44 (0) 1732 370340 M: +44 (0) 7823 736629 E: angela@aftermarket.co.uk Fault finding demonstrations on live vehicles Live audience Industry updates New tools, equipment & software Find out more about the Top Technician competition Hear from and network with industry experts Live panel discussions and seminars covering major issues and developing market trends Health, Safety & Wellbeing Content in association with Ben - The Automotive Industry Charity. Discover ways to level-up your business Ask our speakers and panels your own questions • Accessories & Customisation • Business Management & Services • Paint & Bodyshop • Car Care & Clean • Diagnostics & Repair • Electronics & Connectivity • Distribution & Factors • Parts & Components • Skills, Learning & Human Resources • Wheels & Tyres
How can automotive service providers levelup to support customers impacted by increasing costs, while maintaining profitability in their organisation? Research shows that the rise in the cost-of-living is impacting vehicle owners, but also garages, repair shops and automotive service providers. Forbes reports significant cost-of-living pressures on consumers. A study found that 19% have had to dip into rainy day savings or take out a loan to cover basic running costs. Overall, two-thirds of all drivers agreed the rising cost of living has made owning a car more challenging, with 68% worrying about affording fuel for essential journeys such as commuting to work or taking children to school. The impact of rising inflation works both ways. A study from The Motor Ombudsman shows that automotive servicing and repair businesses are facing their own operational issues due to the cost-of-living increase. Nearly 80% of workshops surveyed stated that increased parts prices may impact their business. This led to 60% of those polled to suggest they would be looking to increase costs to their customers, in order to remain profitable in the face of higher overheads. Delays getting hold of replacement parts were cited as the second largest obstacle for garages and workshops, negatively impacting 72% of businesses. The poll also showed 71% of workshops are seeing motorists reducing their ad-hoc spending and routine vehicle maintenance when compared to the first six months of last year. McKinsey’s prediction for the reality of the automotive sector spanning the remainder of the decade is upbeat however: “Driven by shared mobility, connectivity services, and feature upgrades, new business models could expand automotive revenue pools by about 30%, adding up to $1.5 trillion.” As McKinsey cites in its report, thinking out of the box is 16 AFTERMARKET OCTOBER 2023 BUSINESS www.aftermarketonline.net Emerging repair models and digital tools can guarantee a happy customer, while retaining competitive service pricing for garages key to unlocking both better customer offerings and business value – and both of those are symbiotically linked. The route to better customer satisfaction and business growth will involve changing traditional repair shop business models, adapting to meet changing customer preferences and introducing supporting automotive technology inside and outside the physical garage. This is exactly the approach Halfords has taken as a business – both inside and outside of its autocentres with its tech- and customer-led changes, underpinned by its end-to-end Avayler software platform. New software accelerates business change and keeps the customer in tow On the Halfords Autocentres side, new tech has been introduced on to the repair shop floor that has a threefold advantage. It aids technician productivity, at the back end makes parts/inventory management more automated, and essentially keeps the customers on-side with a portal to keep them informed throughout the repair journey. Halfords has also been growing its Mobile Expert operations. Customers can book slots online for vehicle repairs at a time and location that suits them. The Avayler platform then tracks the skills level of a technician, work hours and the work undertaken to not only optimise scheduling but learn from the data to make mobile jobs more efficient. The van operation, which has a 4.8/5 Trustpilot rating, has seen a 70% increase in job productivity and more than 200% increase in utilisation since it started using the platform, demonstrating the potential for greater customer satisfaction from mobile operations. With this experience in mind, here are the top three areas where tech-led innovations can deliver realisable cost, efficiency and time benefits across all areas of the automotive repair landscape. 1. Putting the customer front and centre Automation of tasks and having a coherent digital presence makes repair organisations more responsive and time-efficient – better for customer service and for the business bottom line. Whether booking a service inside or outside the garage, most customer journeys will begin online. This means making sure they can easily book their services at a time and date that suit them – for mobile services this will also extend to location. Overlaying this with dynamic pricing depending on slot availability allows. Once the service is booked, it’s important to keep a digital line of communication with the customer through a self-service portal. Customers log in to the portal and can view details about their appointment including pricing quote, parts needed, technician name and more. NEW BUSINESS MODELS DRIVING SMR BY John Bramley, Group Operations Director, Halfords, Karl Baker, Head of Halfords Mobile Expert
OCTOBER 2023 AFTERMARKET 17 www.aftermarketonline.net Automated digital communication is sent to the portal at every stage, for the customer to access in real-time. Inside the garage this could be live updates on the status of their repair, for mobile operations this could be accurate updates on the whereabouts of the technician coming to execute their repair. dentify and manage minor faults By digitising all customer interactions, garages and automotive service providers can also maintain customer data and history and streamline services according to this information. Here’s where this can really pay off in the current economic environment. Any non-critical faults that might save the customer some money on this appointment can be flagged and tracked to address later. Here again, a more predictive maintenance management approach can remind customers to book their next services when needed based on relevant customer data – to capture recurring revenue but also let customers manage and prioritise their requirements on their own terms. 2.Boosting operational efficiency with increased automation Of course, it’s not just the customer themselves getting better value from more streamlined, intelligent and efficient processes. Operationally, introducing new tech will have significant business benefits too – right from initial booking through to job execution and recurring revenue. Automated scheduling delivers the best outcomes for while maximising efficiencies with our automated scheduling. Dynamic appointment booking easily books customers into lanes, bays, offices or other site locations from the schedule board. Managers, dispatchers, and admin users have the ability to accommodate walk-in customers, additional jobs and last-minute changes. Capturing key customer information that integrates with dynamic scheduling ensures added jobs are optimally scheduled to accommodate more services per day. Avoid inventory shortages One of the best efficiency benefits that technology and software can offer to automotive repair organisations shops is inventory management. End-to-end software can track inventory levels at all times and trigger responses to shortages accordingly. This type of platform can also connect with vendors and automatically notify them of required inventory, products and parts. With the Motor Ombudsman reporting citing inventory shortages was a key pain point right now – automating these processes can significantly alleviate these inventory pressures. 3.Keeping employees on the right road Not only should technology optimise stock and resources, but it can also maximise employee productivity too. It begins with assigning the most suitable technician to each specific job. Putting technology into the hands of technicians in auto repair centres and in the field, makes their jobs much easier. Tablet-based systems can easily guide technicians through jobs, including integrations to access information such as vehicle identification numbers and all the details of vehicles to make the process quicker and more transparent. Technicians will need the ability to add additional jobs that are needed on the vehicle – the system, which should then automatically remove completed jobs from the technician’s diary to free up any other available slots throughout the course of the day. Not only will this ensure quality assurance, audit trails and time stamps, but without the option to adjust labour timings, technicians are encouraged to complete the necessary MOT, service, or repair within the designated time slot. All these tech-enabled efficiencies will translate into bottom line benefits. We are a case in point. We used Avayler to manage the Halfords expansion to mobile operations, and it was both successful and profitable. Very quickly we were able to increase productivity by 20% on top of our initial projections, while ensuring the highest levels of customer satisfaction New digital solutions drive the future of the garage Both drivers and automotive repair providers are feeling the effects of inflation everywhere, especially as this era of economic hardship isn’t expected to disappear quickly, but those who look to new models to serve customers and prioritise digital solutions will prosper. Automotive repair providers should take this chance to re-calibrate their business systems and make the most of available technology to provide a better service to their customers. A tech-focused investment could propel garages well into the future of the auto repair industry. www.aftermarketonline.net Automotive aft software desig Business mana e easy- reporting processes in on s, stock mana Integrate your sale termarket gned for the agement age. -to-use pack d gement, accounting an factors Motor 7/10 Used by 7 Autopart For further information or to request a demo, pleas www.mamsoft.co.uk/autopart or call us on 01226 35 se visit 52901
Why is conformity with Open Charge Point Protocol (OCPP) charging profiles important? The reason is hardware agnostic load balancing. Some sites with charge points have a limited electricity supply, and load balancing can alleviate these problems by actively controlling the charging current for charge points on a site. Let’s look at how load balancing works. Static load balancing means that each charge point is assigned a fixed maximum current. For a 48-amp installation, six charge points could be installed being 48/6 = 8 amps for each charge point. But what if only four cars are charging? It would make sense if the current could be changed according to the number of cars charging. Dynamic load balancing assigns each charge point a maximum current continuously based on how many cars are charging. If four cars were charging in the example before, each charge point would be assigned 12 amps, meaning a better charging experience for the end user. This allows for a greater number of charge points per site without reduced level of service during non-busy hours. In practice How is dynamic load balancing implemented in practice? Some manufacturers implement their own load balancing solution within the charge point software; i.e. using a web interface, app, etc. Dynamic load balancing requires constant communication: What communication needs to happen when doing load balancing? User plugs car into charge point Charge points tells the system that a car has connected System recalculates the available current for the site System assigns new charging current to each charge point The system also continuously recalculates the available current based on data from each charge point, with these available states: 1. Charging 2. Waiting to charge (Smart charging or delayed charging) 3. Finished charging 4. Not charging Smart charging However, not all manufacturers implement built-in load balancing using their own software. This is where Monta’s software comes into play. So how does Monta 18 AFTERMARKET OCTOBER 2023 BUSINESS www.aftermarketonline.net YOU DOWN WITH OCPP? For garages with EV charge points, a look at why conformity with Open Charge Point Protocol (OCPP) is so important BY Brian Estrada, Engineering Director at Monta
RkJQdWJsaXNoZXIy MjQ0NzM=