The pandemic really shined a light on the importance of having strong business partners and support in the shop. AkzoNobel sat down with ABRN talk about the role they played in helping their customers through COVID and what changed about their business practices. John Griffin, Regional Commercial Director - AkzoNobel Automotive & Specialty Coatings, Americas, and Business Director, AkzoNobel North America; Michelle Sullivan, Strategic Sales Manager – AkzoNobel Automotive & Specialty Coatings North America; Brad Hendricks, National Sales Manager - AkzoNobel U.S. Vehicle Refinish Premium Segment; and John Eubanks, Regional Marketing Manager - AkzoNobel Auotmotive & Specialty Coatings, Americas shared company insights and what is to come in the future.
How has AkzoNobel adjusted its business practices in light of COVID?
John Griffin: At AkzoNobel North America, we implemented additional safety procedures, minimized shift overlap, and have asked employees to work remotely, where possible. When the pandemic hit, we quickly invested in infrastructure and adapted human resources policies and procedures as the pandemic progressed. The management team meets every two weeks to review our COVID policies and procedures to ensure the safety and well-being of all our employees from commercial to operations and R&D to ensure we can service customers in North America.
Michelle Sullivan: AkzoNobel balances face-to-face and virtual engagements with customers and distributors, keeping safety top of mind. With respect to virtual activities, we have a broad range of offerings from working with our customers on training and informational sessions to holding our national performance group meeting virtually. We are fortunate to have had very positive feedback for the support we’ve given our customers. In addition, AkzoNobel continues to participate in the industry trade shows and events, though virtually, with the largest event being SEMA.
Shops have experienced a big dip in business because of the pandemic. How has AkzoNobel worked as a partner to help keep them successful?
Brad Hendricks: As a global company, we had a true global view of the impacts of COVID-19 in markets around the world that were affected before North America. We used that information to help us predict what was to come in our market and be prepared to help customers the moment they needed support. We quickly initiated support programs for our distribution network, assisting them in growth opportunities to help offset the decline in business volumes. We continue to support and invest in the market in hopes to see it thrive on the other side of this pandemic.
One interesting insight we have in the U.S. is with Sikkens customers using our Acoat Selected business support services, including Carbeat™, our proprietary shop management system. While these locations have experienced a reduction in volume like other collision repair shops throughout the country, they continue to trend above market in profitability by utilizing these services to support their businesses.
Michelle Sullivan: AkzoNobel has seen various levels of impact throughout the countries we operate. We have engaged with our customers through training, education and best practices sharing. We brought in industry experts to help them with new dynamics in their business due to the challenges brought on by the pandemic. AkzoNobel has offered numerous educational sessions and opportunities to our partner shops through e-learning and webinars for continuous improvement. And as Brad mentioned, we have seen our Sikkens Acoat Selected shops collectively weather the pandemic better than market average.
Are there any new initiatives or announcements AkzoNobel is excited about going into 2021?
John Griffin: In 2020, we achieved an aggressive, five-year goal to strengthen the core of our business and become more streamlined as a company. Our 2020 full year earnings were released on February 17, 2021 and showed strong performance in a very difficult year. Moving into 2021 and beyond, we are focusing on growth and profitability improvement with our Grow and Deliver strategy along with a new purpose statement of Pioneering a World of Possibilities to bring surfaces to life. Our purpose defines us, unites us and makes us proud to work for AkzoNobel. As part of this strategy, we continue to evaluate acquisitions that fit well with our business.
We are also excited to have once again received Top Employer Re-certification in the U.S. and four other key AkzoNobel markets: The Netherlands, United Kingdom, Brazil and China. This demonstrates a broad effort to make AkzoNobel a great place to work and build a career.
What are some of the core values the company was founded on and how do they translate to the industry today?
John Griffin: The core values that have led our company for literally centuries are safety, sustainability and integrity. The belief that employees are the most important asset for building a sustainable future is central to the company’s “People. Planet. Paint.” approach. Year after year, the feedback that comes with the Top Employer certification mentioned earlier helps AkzoNobel continue to improve on its position as a leading employer.
Regarding sustainability, several years ago AkzoNobel transitioned from the Dow Jones Sustainability Index to EcoVadis, believing that the more rigorous rating system would better help us achieve our goals of reducing waste, energy consumption and our carbon footprint. AkzoNobel is proud to hold a Platinum rating, the highest available from EcoVadis.
How has AkzoNobel evolved its brand and offerings as the industry has changed?
John Eubanks: We’ve evolved our brand strategies as the industry has changed, particularly as it relates to regulations in different areas of North America. Governmental legislation is driving that change. Also, the speed of which repairs are being done is driving our industry and our offerings. In the past, a repair might take 3 - 4 days; now we’re looking at 1.5 - 2.0 days to complete a repair. Our product systems -- from the primer all the way through to the clearcoat -- need to be fast to help increase body shop throughput.
Any fun or interesting facts about the company that your average customer may not know?
John Eubanks: One of the most interesting facts about AkzoNobel is that our story begins more than three centuries ago! In fact, we can trace our origins all the way back to a foundry established in 1646 in the Swedish countryside. Another very interesting fact is that one of our founding fathers, Alfred Nobel, established the Nobel prize in 1895, recognizing excellence in academic, cultural or scientific advances. The Nobel Prize is widely recognized to this day as the most prestigious award available in a respected field.
The Automotive & Specialty Coatings business of AkzoNobel has been operating in North America since 1919 when the Vehicle Refinishes business’ predecessor, Pontiac Varnish Company, was founded in Pontiac, MI. AkzoNobel acquired Wyandotte Paint Products in 1983 to enter the North American automotive market, the same year the Sikkens vehicle refinish brand was launched in North America.
About AkzoNobel
We’ve been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there’s a good chance you’re within reach of one of our products. Our world class portfolio of brands – including Sikkens, Dulux, International, and Interpon – is trusted by customers around the globe. We’re active in more than 150 countries and have set our sights on becoming the global industry leader. It’s what you’d expect from the most sustainable paints company, which has been inventing the future for more than two centuries.
