SBT1917 Modern Claims 26 Supplement v5[1]

INTERVIEW

Martin Gray The entire automotive and insurance industries continue to evolve at an accelerated pace – and that has never been more the case than in these uncertain political and economic times. Modern Claims spoke to Martin Gray , CEO of Euro Car Parts, about his organisation’s view of the world, changes affecting the collision sector, as well as the role played by technological, legislative and consumer pressures upon the industry. Q How’s business? In addition, we are one of the only operators able to offer collision parts, paint and consumables in the UK, in one total solution. Added to that, we have an industry-leading workshop equipment

A On the collision side of the organisation, business is as good as it has been for a while, which is positive. That seems to be reflected across the sector in general. We’re hitting budgets and looking to the future. We won’t sit still though, and our aim is to continue to challenge our own numbers and philosophies. We are always trying to make the business work more effectively, while striving to further improve service to the bodyshop, meaning we can pass process improvement benefits on to the customer. Q What factors impact on customer decisions in the UK aftermarket/collision repair sector e.g. price, quality, availability, brand loyalty, standards? A The big driver across the industry is that all-important key- to-key time for the insurer’s customer. Indeed, as consumers become, rightly, more discerning and demanding, the pressure is there to reduce downtime and get the vehicle back to the policyholder, fast. Therefore, the quick availability of parts is crucial. If the panels or components are not available, the knock-on effect for getting the car back on the road is significant. Price is obviously another factor, as is the need for an excellent product and service at every juncture, including the quality of the parts used. Q What are the key selling points of your collision repair offer? A It’s the same for our collision repair offer as it is for other elements of the business; good, old-fashioned customer service, as well as price and availability. We pride ourselves on endeavouring to get those key themes right. And, we deliver those key tenets via a truly world-class logistics solution. It’s about having the right part, in the right place, at the right time. That is why, as a group, we invest heavily in our hub and branch logistics operation, allowing us to get parts to the customer faster by driving improvements in terms of better process. That investment includes the new T2 facility at Tamworth. We also believe that our approach to pricing allows us to give the bodyshop a better commercial model through increased margin.

service team to support bodyshops and garages in terms of capital equipment purchases, as well as training. So, we’re striving to offer that total package for our customers. Q Are there lessons from LKQ’s success in America that can be adopted here in the UK? A That’s a fascinating question; there are so many lessons for both sides of the Atlantic to learn from each other. For example, LKQ has been extremely successful in gaining adoption of aftermarket parts as a credible alternative to OE suppliers in the USA. An increasing penetration of non-OE parts in the US is something we can learn more from back in Europe. Indeed, the market reach of non-OE parts in the USA is 37%, where in the UK it’s running at only 7%. In addition, the United States has a thriving recycled operation that would be welcome in the UK, both from an environmental and CSR perspective. Whichever way one looks at the issue, writing a car off is not a good thing. We still don’t have a significant green parts/recycled operation in the UK, but that tide is starting to turn for the good.

It’s an invigorating, challenging, £4 billion industry, and we want to attract the best recruits for the next generation

July 2017

The Aftermarket Supplement 07