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Church Brothers Collision Repair

Church Brothers Collision Repair. Summary of a Waterborne Conversion at a 6 location MSO. Family Owned Collision Repair Company since 1929 (founded by brothers Noel and Clem Church) Repair and Paint approximately 8,000 Cars and Light Trucks Annually

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Church Brothers Collision Repair

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  1. Church Brothers Collision Repair Summary of a Waterborne Conversion at a 6 location MSO

  2. Family Owned Collision Repair Company since 1929 (founded by brothers Noel and Clem Church) • Repair and Paint approximately 8,000 Cars and Light Trucks Annually • 6 Indianapolis area locations • 145 Employees Who is Church Brothers Collision Repair?

  3. Converted Solvent Basecoat System to a Waterborne Basecoat System for all vehicle refinishing processes. • Between Dec. 2007 and Nov. of 2008 Church Brothers converted all 6 locations. • Solvent Refinishing Systems exist in 99% of all Collision Repair shops today, with the exception of special containment areas on the South Coast of California, where a mandate took effect in 2009 . What process did we modify to reduce pollution emissions?

  4. Why Change to Waterborne? • Contractual Arrangement with Dupont (Spies Hecker) had ended. • Decision to change based on following: • Wanted to be 1st MSO in Indiana to convert to waterborne • Right thing for environment and employees • Marketing Benefits • Anticipated we would get more technical assistance if we were significantly ahead of any mandate • Improved color match as OEM’s moved to water • Using less material has many benefits • Improved Productivity ? • Lower cost total cost ?

  5. Water vs. Solvent What’s in the Can Solvent Basecoat Waterborne Basecoat Average 6+ VOC’s per pound Average 3.5 VOC’s per pound 70 % Water 85 % Organic Solvents 10% Organic Solvents 20% Pigment, metallic and pearlescent particles 15% Pigment, metallic and pearlescent particles

  6. Church Brothers Waterborne Transition 28% Less VOC Emissions Equals 15,000 Fewer VOC’s Emitted Each Year AnnualEnvironmental Impact

  7. 2010 Timing Canada 2012 – 2015 Est. Timing Lake Michigan Air Directors Consortium (LADCO): IL, MI, IN, WI 2009 – 2011 Est. Timing Est. ~50% of the US market on WBC in 6-7 years California 2012 – 2015 Est. Timing Ozone Transportation Commission (OTC): CT, DE, DC, ME, MD, MA, NH, NJ, NY, PA, RI, VT, VA Legislation Mandating the Change to Waterborne?Regions & Air Districts Impacted North America View 99%+ U. S. Repair Shops still use a Solvent Basecoat Refinishing System

  8. OEM Adoption of Waterborne Basecoat 40% of OEMs in U.S. use Water60% of OEMs in Europe use Water In General: Cars made in Germany, Scandinavia , Spain use WaterCars made in France, Italy use SolventCars made in Japan use solventAsian transplants in North America use WaterEuropean transplants in North America use Water

  9. OEM Adoption of Waterborne Basecoat 0% 50% 100%

  10. Church Brothers’ 6 Conversions in 12 months: • CB Castleton 1st store in Dec. 2007 • 1 store a quarter in 2008 with CB Greenwood and Shadeland locations converted by Nov. 2008 • 30 Day Transition at each location Waterborne Conversion Schedule

  11. Conversion to Waterborne Basecoat created following changes: Establish Paint Distribution New Paint Process SOP’s Spray Test Panels Finer Grit Abrasives Material Handling Installed Enhanced Air Moving Equipment in Paint Booths* New Training: Product Training/Tinting Class at Spies Training center in Michigan Added Waste Stream/Gun Cleaner • 1 Solvent/1 Waterborne (non-hazardous) New Paint Guns/Hoses /Materials What Did We Have to Change?

  12. Relative Humidity AirFlow Air Flow Vapor Barrier Temperature Paint Film Substrate Waterborne Drying Process – Influential Factors Film Thickness

  13. Transitioned from Spies Hecker Solvent to Spies HeckerPermahyd (Waterborne Basecoat): • Easiest Transition/ Less to learn: • Only had to learn new techniques and attributes of new color coat. Clear coat and primer/ sealers stayed same. • Familiar with support and people. • Product Tried and Tested in Europe for last 10+ years. Benefits of staying in the same product family

  14. Church Brothers did 100% of what was recommended to insure success: • Air Handling Systems- Garmat - $9,000 per Booth • Jun-Air Quads- $13,000 per Booth • Gun Cleaner- Dual Gun Cleaner $2,500 • Paint Guns- $1,200 • Hoses/ Water Heater/ Fittings/Driers- $1,000 • Total cost of approximately $25,000- $35,000 per store depending on type of equipment we chose to install at the location. • Assistance from IDEM’s P2 Pollution Prevention Grant: Cost Share Program What Did Equipment Cost to Change?

  15. Initially cost increase of $. 70 per paint hour, but currently increase down to $.40 over baseline costs. • Paint toners cost more, but use should use less • Spray test panels for every job • Use more straining filters • Recommended use of Paint Gun Cup Liner and Filter System (3M PPS cups ) • Gun Cleaning Materials- 2 waste streams Ongoing Costs of the Waterborne Change.

  16. Pros: • Less Pollution- 28% reduction in VOC Emissions • Generate less hazardous liquid waste • Safer for Employees- No brain numbing solvent smell • Improved Productivity- less booth time because fewer coats of paint are required to cover. 5 minute dry time. • Color Match to Waterborne is better • 10 out of 10 CB Painters prefer waterborne to solvent • Product is very consistent • Customer Satisfaction Paint Scores are higher with waterborne. • CSI Complete Paint Scores - 98.4% Satisfaction since Waterborne Conversion vs. 97.7% Satisfaction with Solvent • Colors are brilliant and clean Benefits of Waterborne Use…

  17. Cons: • Color is extremely sensitive to technique- A painter can change a color 10 shades with air pressure/ distance and gun control. Must do a spray out on every new color. Person Spraying should do the spray out. • Product is temperature sensitive- Must keep color in temperature controlled environment. • Need additional 6 inches of panel to blend from 12-18 Inches. • 2 Tone Vehicles = Paint 2 times/3 Stage take longer to dry base. • Toners are dirty and need to be strained to a greater degree. • More Tinting-Database of variances is not complete. Some solvent colors have 7 variances and in water there might be 1 or 2. • Increased Liquid Costs- Originally costs increased $.70 per paint hour, but started to decline as painters get better acclimated to product. Negatives of Waterborne Use…

  18. Overall….. Satisfied with Change to Waterborne. • Timing was right for us to realize some Marketing benefit. • Product is different but performs very well. • Productivity is improved. • Materials costs are gradually working closer to neutral, and we are still hopeful profitability will continue to improve with waterborne. Management Commitment, Preparation and Continuous Communication Were Key to Our Success!

  19. Thank You……

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