Then there was the anxiety surrounding the issue. Many observers braced for the worst – from the permanent loss of vital financial data to cataclysmic system failures that would send planes falling from the sky. Of course, none of this happened. Businesses made changes and fears quickly vanished.
Think back to the 2007 passage of California Air Resources Board (CARB) Rules 1151 and 4612, which mandated that shops in two air quality management districts move to low-VOC refinish coatings by Jan. 1, 2009. Businesses again faced serious compliance costs in lost time and system upgrades. Fear also accompanied this change. Shops swapped dire rumors that moving to waterborne would entail spending hundreds of thousands of dollars on new spray booths or that the finishes would prove difficult to use and would provide substandard finishes. Some predicted the low-VOC mandate would be the nail in the coffin for shops already struggling to remain open.
Again, the vast majority of affected businesses made needed changes and nothing awful happened. The move to waterborne does differ from Y2K in some key aspects. For one, the entire nation dealt with the latter at the same time whereas the auto body repair industry continues to deal with waterborne conversion in areas outside of California. Two, waterborne is leaving a unique mark that continues to transform the industry in some unanticipated ways.
Right now, just where low-VOC finishes will be mandated next and when is becoming much clearer.
VOC mandates
For years, paint manufacturers have maintained projections of where low-VOC finishes will be mandated and when. They publicly withheld those predictions as proprietary information. As those projected dates loom closer, some are opening up.
Rebecca Rizzo, product manager of global products for Sherwin-Williams Automotive Finishes, said her company sees the Northeast and Midwest as the next waterborne hot spots. She notes that there have been no formal mandates. "There is talk of the OTC (Ozone Transport Commission) states, the New England States, moving to low-VOC legislation in 2012. Soon after that, the LADCO (Lake Michigan Air Directors Consortium) states, Midwest states, are anticipated to follow in 2014."
"The OTC has passed a model rule based on the CARB model. Model implementation is 2012. Delaware has started the rule-making process and published a draft rule based on the OTC model. Limits are identical to CARB rule," she adds.
The OTC is a multistate organization created under the Clean Air Act. It's responsible for advising the U.S. Environmental Protection Agency (EPA) on transport issues and for developing and implementing regional solutions to the ground-level ozone problem in the northeast and mid-Atlantic regions. OTC members include Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia.
LADCO is a non-profit organization formed in 1989 to "provide technical assessments for and assistance to its member states on regional air quality problems, including ozone, fine particles, regional haze, and air toxics; and to provide a forum for its member states to discuss regional air quality issues." LADCO includes Illinois, Indiana, Michigan and Wisconsin. LADCO, along with Ohio and federally recognized Native American tribes in Michigan and Wisconsin, leads the Midwest Regional Planning Organization (RPO), which shares LADCO's mission.
There's plenty of reason to believe LADCO and RPO will suggest adoption on low-VOC legislation to their member states. The groups have been following CARB's efforts to lower VOCs produced by body shops. They've created documents detailing the projected effects of mandates similar to CARB's in their own states.
Following the projected mandates in the Northeast and Midwest, Rizzo expects Texas and Arizona to institute low-VOC legislation in 2015 and 2016, respectively.
While other paint manufacturers agree with Sherwin-Williams' projections, they also caution that so many legislative and political elements are in play – both on local and national levels – that low-VOC mandates could be popping up sooner than expected. Some mandates could occur first at municipal rather than state levels.
Darlene Eilenberger, director of marketing for BASF Coatings North America, notes, "We do believe that over the next few years several other municipalities and states will begin to discuss lower VOC legislation for body shops – especially due to the recent lowering of the ozone standard by the U.S. EPA."
In January 2010, the EPA proposed far stricter standards for controlling smog, which VOCs help produce. The proposed standards would help states and municipalities looking for relief from smog set standards they've had difficulty mandating on their own. During the Bush administration several states took the federal government to court, saying current standards were inadequate to protect human health and the environment.
The EPA said it expects to issue a final rule in August with its new standards. States will then have to submit plans by the end of 2013 describing how areas not attaining the standard will be brought into compliance. New rules are to be phased in between 2014 and 2031, with deadlines set based on how dirty the air is in a specific region.
Some suggest the entire nation will be under low-VOC mandates by 2020.
Eilenberger said that this date could be moved up. "This really depends on so many factors it is difficult to say. If Washington maintains the current power ratio – it will move quickly," she says.
Conversion division
With the timetable for moving shops to low-VOC finishes looking more aggressive, repairers would be better served by converting to waterborne finishes sooner rather than later. Many shops outside of California already have made the move. Doug Beuke, compliant product manager for PPG Automotive Refinish, says 25 percent of PPG's waterborne customers are located outside of mandated areas.
There are good reasons to convert other than laws. Shops rave about the relative low cost of conversion, superior finishes, additional revenue and the benefits of being able to market oneself as a "green" shop.
Industry members are asking why so many shops still are waiting to convert. Some believe that how shops respond to this issue, especially during a critical time in the industry when the number of shops continues to drop, is a litmus test on whether shops will survive long-term.
Ray Cerette, a jobber and former shop manager who worked in Los Angeles during the CARB mandate, says, "I really have to question the judgment of shops that aren't now going to waterborne. The shop I was running didn't have access to all the information that's out there now.
"I understand that dollars are hard to come by and some guys may think they might lose money, but the proof is there. If shops aren't on top of this, it says a lot about them and whether they're on top of a lot of other things that will determine if they really have what it takes to stay in this industry. What sort of businessman is going to wait and watch money go out the door or not take advantage of this? If something offers you a competitive advantage, you'd better jump on it."
Doyle McIntyre, a Chicago-based small business consultant who has begun working with mechanical and body shops, similarly says repairers need to be acting with a greater sense of urgency when it comes to moving to waterborne finishes. He explains, "Regardless of the size of any business, today the name of the game is acting quickly, before you have to react. With small businesses, that should be much easier because you have a smaller organization to redirect. That's the benefit of running a small business.
"The problem with body shops is that so many are locked into a model where they're fighting so hard to turn a dollar with what they have, they can't even think about change. Fear has pushed many of them to abandon what should be their best, most effective business attribute – their ability to reform their business fairly quickly.
"That's a real shame when it comes to using waterborne products since it's such a slam dunk. Going lean is a difficult, long-term venture. Waterborne works today. You can start doing better work now. There's plenty of help to get up to speed. Once you do that, you can make more money and reinvest. Shops shouldn't look at waterborne as some sort of solution to their problems. They need to realize it's a necessary part of being in this industry."
Conversion motivation
Still, McIntyre expects most shops to continue to wait before converting. Some industry members say shops won't act until they're confident they can justify any costs or until they're compelled to do so.
Keith Rickerman, global product manager for AkzoNobel, notes, "The primary obstacle to switching could probably be summed up in one word – economics. There is always a friction to change because there are concerns over the costs associated with learning curves and educating staffs that are already comfortable with certain practices. There are also concerns over the costs of retrofitting businesses by adding or deleting equipment and materials that are already paid for and seem to still have a lot of working life left in them."
Representatives from ChemSpec USA note that, "There is still some reluctance by shops to accept the product, and because of this there are still requests for low-VOC solvent basecoat. As far as accepting changes, in our current economy most shops are complaining about this additional mandate and the additional cost."
Ken Papich, western regional sales manager for Matrix System Automotive Finishes, says shops have some increased costs to absorb. In some cases, these costs can be significant. "Some new products require significant investments in equipment, which some shops are not able to afford. Additionally, the cost of most low-VOC products is significantly higher than national rule; therefore shops have hesitated or reverted after conversion." He added that shops can avoid unexpected high immediate costs through proper training.
"Government mandates make people switch, no other reason," says Thomas L. Gardner, director of business development for Pro-Spray Automotive Finishes. "If people had a choice between low-VOC and national rule solvent products, they would choose nine times out of 10 the national rule product." Gardner adds that, apart from mandates, shops change when they find concrete reasons to move to waterborne – when they realize they can both produce an OEM quality finish and "save the planet," he says.
Cerette said it's imperative that shops make these realizations soon and begin moving to low-VOC products now. "The paint guys do a great job, but you have to remember there are only so many trainers. When the conversion date got closer in our area some shops were scrambling to get help. What happens when an entire state or group of states has to convert at the same time? Odds are you're going to be given some time to comply, but people have a habit of waiting till the last minute to act. You're going to end up with a bunch of people all screaming for help at the same time right before a deadline. Why wait and risk this?"
The future is now
Ed Martin of All Makes Collision Center in Indianapolis hasn't waited. Manager Dennis Deaton says he started looking at waterborne three years ago and converted in September 2007. "I knew we would eventually have to convert. I didn't want to be first to do so and I didn't want to be the last," he says.
Deaton's interest in waterborne was part of an ongoing examination of new products, a practice McIntyre says waterborne underscores. "It sends a message on the importance of staying abreast of technology," he says. "Shops commonly look at the latest and greatest products but can be reluctant to actually try them until they see other shops do so. With waterborne, you'll see lots of innovations with them you won't with solvents since the paint companies know solvents are going away. Shops will want to be a part of all this now, not later."
Some shops already report that low-VOC finishes have advanced past their solvent-based counterparts. Jeremy Weller, owner of Unique Auto Body in South Jordon, Utah, said he moved to waterborne, to duplicate some OEM finishes. "I thought there were colors we couldn't get right unless we moved to waterborne," says Weller. "There are a lot of colors with a brilliant metallic that you can't do with solvent."
Other shops are picking up on waterborne's message that cost reduction can be tied to the latest green technologies and other innovations. Tim Carmack, DuPont Performance Coatings Americas marketing & strategy leader – refinish, notes, "We have some shops that have embraced solar power for their facilities, and we think there will be increased activity in this area in the future."
Carmack adds, "Once a shop has upgraded to waterborne, they start to embrace the environmental sustainability spirit. While shops are looking at sustainability, they are also focusing on business upgrades, such as LEAN, KPIs, SOPs, etc. – great business practices that enhance their business operations."
The health issue
Often overlooked in the discussion of low-VOC finishes is their immediate impact on the health of painters and other shop employees. Reducing the level of VOCs in a community means a healthier environment for everyone, especially those who would otherwise be closest to all of these pollutants.
During a visit to Pro-Spray's training center last fall, ABRN talked with painters who noted – with excitement – just how much better they felt physically after moving to low-VOC paints.
Weller shares a similar experience. He spent several years working as a painter and said he and his painters feel markedly better after a day of working with waterborne compared to solvent-based finishes. "You feel like you can do so much more at the end of the day. When you get home, you have the energy to do things," Weller says. "Before, even with all the protective equipment you'd wear, it just seemed like the solvents would still get into your body, almost like your body was absorbing them."
Cerette said the healthier environment boosted production at his shop. "A month or two into using this stuff you could tell something changed. My guys made a point of saying they felt better," he says. "We saw fewer sick days. Waterborne paints make a real difference."
McIntyre says the significance of these experiences can't be overestimated. Ground-level employees often must wait to receive any of the benefits of business changes, which, he said, isn't the case here. "Good painters can be hard to come by, so you need to keep them happy. A lot of managers and owners were painters at one time, so you can guess where this can go."
McIntyre said this could result in a generation of managers and owners tuned in more than ever to environmental issues. "Shops already really care about being compliant. When an issue becomes personal and affects how you feel when you get out of bed in the morning, you can bet it will be on the top of your list when it comes to making shop policy," he says. "When an issue becomes as personal as this, it can completely change your perspective."
Paint companies discuss issues
ABRN: Aside from government mandates, what are the major reasons or forces that are convincing shops to convert to low-VOC finishes?
BASF: Going “green” and doing the right thing is very high on the list. Many shops realize that low-VOC products are where all the paint companies are spending their research and development time and energy. If shops want to use the best technology, they need to switch to low-VOC products.
ABRN: Are most shops well educated on the benefits of converting to waterborne finishes?
Sherwin-Williams Automotive Finishes: Since the introduction of the mandates in California in 2007, more paint suppliers are holding informational sessions to educate collision repair facility owners about waterborne paints. The interest of shop owners has grown over the last three years and with the increase in interest, these informational sessions, articles in trade journals, and web advertising has become much more frequent and in-depth. I think that the collision repair facilities located in the OTC and LADCO states are becoming the most educated due to increased interest and talk of upcoming mandates.
ABRN: In what other ways do you see the conversion to waterborne affecting the auto body repair industry? For example, does it help pave the way for shops and the industry to accept other changes?
Pro-Spray: That depends on what the change is and if they have to change (mandated). Body shops are going to be critical of any change, especially if it will cost them more money in an industry where margins are shrinking on a daily basis. But if a proposed “green” initiative has a marketable benefit, they will look at it.
ABRN: Is the interest in converting to waterborne still growing?
DuPont Performance Coatings: Yes, interest is definitely ramping up. If a shop is interested, we recommend that they be proactive and upgrade to waterborne early. No one likes to be forced into change.
ABRN: What obstacles are preventing shops from converting?
PPG: Change, illustrated by the old saying “if it ain’t broke don’t fix it.” Most shops are comfortable with their solvent base and get good results, so many think, “Why bother?” However, we have found that shops that do convert to waterborne consistently say they would never go back to spraying solvent.
ChemSpec USA: Paint companies’ limited resources of technical personnel to provide proper training. Shops are finding that simply putting a waterborne system in is not all that’s required. You also need a proper booth and additional equipment, which is adding to the cost, which in many cases delays implementation. Without a proper setup, the paint will be blamed for any failure. Insurance companies have not made any adjustments for waterborne paint (product cost, equipment, additional time, etc.).
Matrix System Automotive Finishes: Many shops are at the mercy of their painters. The fear of losing them because of their unwillingness to change has shops worried about lost production. A major hurdle is for the painter to learn a whole new system, especially with application and spray environment modifications.
ABRN: Are there any myths surrounding the conversion to waterborne that you’ve found many shops still believe in?
AkzoNobel: Myths revolve around the perceptions of complexity, expense or color match. As with most myths, they reside in the minds of the holder. Preparation and training is required to have an effective and efficient conversion. We have many customers that say the reality of the conversion has been much less dramatic than was anticipated, and many that say they would never go back to the previous technologies.
