Where We Began
When we first became involved in the supply of repair
panels, very few were actually available. It was necessary for a panel beater
to cut sheet metal by hand and to beat it into the correct shape. This was
not only skilled and time consuming work but also expensive. Gradually new,
more efficient tools were produced which allowed the manufacture of part
panels in quantity. This tooling revolutionised the car repair industry and
the benefits were enormous. More and more people became involved and processes
became much faster and cheaper. Unfortunately many of the panels produced
at this time were of rather poor quality and this leant credence to the belief
still held in some areas today that all pattern panels are inferior.
This belief, that only
Original Parts are good enough for use in crash repair work is of course
untrue.
Quality non original body panels are now produced all
over the world in great quantities and many of today's manufacturers are
based in traditional centres of motor production where they often make parts
for Original Equipment Manufacturers.
It has long been accepted
that the use of Non OEM replacement panels in accident repair work produces
savings of between 15 and 20% on OEM materials, sometimes more. The potential
savings to the motor vehicle insurance industry as a whole is
vast.
Non OEM Manufacturers have long realised that the issue of "quality" was paramount to their success in the UK crash repair market and have consequently invested large sums of money in their factories. Many of these manufacturers already comply with ISO9002 1994, thus showing their commitment to "Quality".
OUR MARKET PLACE
A few years ago the major Non-Original Panel Manufacturers which comprised Veng, Saltofix, Hadrian and Popon supplied a market which was worth in the region of £50,000,000. Now it is worth approximately £30,000,000. The question that immediately comes to mind is where can £20,000,000 have gone.
The probable answers are surprisingly simple.
Bodyshops have gone through some fairly drastic changes: -Insurance Company labour rates have only risen by 1% to an average of £19.80 per hour in the last year which is the lowest rise recorded by Sewells in the last 10 years. In addition to this Insurance companies have insisted that courtesy cars must be provided by bodyshops for the use of their customers whilst vehicles are being repaired and last but not least, new paint regulations have come into force.
Each of these examples affects a bodyshop's potential profitability and to
combat these effects bodyshops have changed their buying pattern and are
tending to fit more original parts. They obtain a percentage discount according
to the value of the part being fitted. If an original part costs £100.00
and the Non-Original part of a comparable standard costs £70.00, the
bodyshop is more inclined to fit the more expensive part.
This is quite understandable; after all, Bodyshops are businesses and must
make profits.
There are a number of other factors that also come into play.
The quality of cars being manufactured has improved and consequently there is less demand for corrosion panels which has traditionally been the Non- O.E Manufacturer's area of expertise. We have also had three very mild winters and there has been a reduction in the number of car accidents.
Insurance Companies don't wish to rock the boat too much, but use Non-Original Suppliers as leverage to force Original Equipment Manufacturers to reduce their prices. They contributed to the Automotive Panel Association "Code of Practice" which has helped stem some of the unwarranted claims made by the uninitiated that non-original equipment is in some way sub-standard. However, as mentioned above Non-OE Manufacturer / Suppliers of car body panels are still only being given a very small percentage of the £1,000,000,000 car repair market.
Certainly the panel market has been and is going through substantial changes. At one time the majority of motor factors were stockholders and received a small number of deliveries each week. Now however they demand daily delivery thus enabling them to hold a very small amount of stock.
Overseas suppliers have obviously noticed the downward trend in our market place and are worried about our market's apparent instability. With this in mind some of them have approached a few of the larger motor factors with a view to supplying direct. These Motor Factors purchase a limited number of containers and are prepared to work on incredibly low margins. They tend to supplement their small stock range with panels supplied by SVG, Hadrian, EV UK and Imperial etc on a daily basis.
This combination of events has forced a reduction in prices and contributed to an unsettling of the market. However recent changes to some of our competitors should allow for some much needed stability and we are confident that there is light at the end of the tunnel.
Hadrian Manufacturers & Distributors of Non-Original Car Body Panels
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Copyright © 1998 Hadrian
Last modified: 07/12/00