Sun, 04/01/2012 - 10:07

SEMA News—April 2012

INDUSTRY SNAPSHOT
By John Stewart

A Fresh Coat

How Waterborne Paint Is Changing The Automotive Industry

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
In California, where regulation of volatile organic compounds has been in place for years, use of waterborne paint in body shops and custom shops is already commonplace.
   
Paint has long been a necessary product in the automotive world. Customizers and aftermarket manufacturers are among those who require paint products to conduct business. Perhaps the most prolific painters in the automotive sector, other than OEMs, would be shops operating in the repair and refinish segment. These are auto-body shops that make a living on being able to paint fast, match colors perfectly and be economical in the process.
Because volatile organic compounds (VOC) in paint have been recognized as bad for the environment, there is change afoot that will eventually affect practically everyone who paints. A number of states around the country have enacted regulations that are gradually forcing shops to reduce VOC emissions. These regulations, in a nutshell, mean that American paint shops will need to use waterborne paints in order to comply.

The move to less toxic, water-based finishes is already well under way elsewhere. Waterborne paints are currently in extensive use in Europe and Canada, and many OEMs now use water-based paints on their newest products. Paint manufacturers are also moving quickly to develop low-VOC primers and clear-coat products in addition to the color coats available now.

In high-smog states like California, regulations requiring low-VOC technologies have been in place for years, and now other states are following suit. To find out what these requirements will mean as low-VOC requirements spread across the country, SEMA News contacted a variety of stakeholders in the paint industry. We specifically sought information about the newest technology as it stands today and what it will mean to companies that paint.

The consensus among the people we talked to is that the transition to waterborne finish products may not be as difficult or as costly as some first supposed. In fact, the changeover may bring with it a number of advantages.

Paint Formula Advancements

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
An entirely new paint booth, such as this one on display at the SEMA Show, would not likely be required to make the transition to waterborne paint. However, an ample supply of clean air is an upgrade most production body shops choose to make in order to shorten drying time.
   
One of the biggest areas of activity is at the paint manufacturer level, where the transition to waterborne paint has prompted paint companies to develop new products from scratch. Some are now releasing second- and third-generation water-based paints.

“We’ve been doing waterborne for quite a long time; CroMax Pro is our third-generation waterborne product,” said Harry Christman, brand manager for DuPont Refinish. “This is a product that has a brand-new technology.”

The newest waterborne paint from DuPont is a good example of the kinds of paints the industry will need to come up with to help shops achieve low-VOC requirements. It’s formulated with 88% less solvent but 25% more pigment. The result is a product that offers advantages but also requires re-educating painters.

“Most other waterborne products went in the direction of trying to create a waterborne paint that was like solvent-based paint,” Christman explained. “Solvent is the old technology, and painters tend to dislike change. So many paint companies, when they created their waterborne paint, said ‘we’re going to make them like solvent.’ We went a different direction.

“It’s a higher solids product, so it’s got more of the stuff that gets left behind when the water evaporates off. It’s a one-and-a-half coat, wet-on-wet process. Rather than having to lay down a coat of paint, let it flash, then lay down another one, let it flash—and, depending on what you’re working with, lay down four, five, six coats—with Cromax Pro, you cover in one and a half coats. And anything that doesn’t cover in one and a half coats covers in two coats. So you go in, put on the first coat, go right back and put on your mist coat, your ‘effect’ coat, which is half a coat. Then you’re done. You can put the gun away; leave the booth. It will dry, and then you can clear coat it.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Next-generation waterborne paints such as the DuPont product shown here are now becoming available to the industry. Formulated with much less solvent but more pigment, this third-generation paint is designed to cover completely in one to two coats using a fast, wet-on-wet application process.
   
The newest DuPont paint costs a little more per gallon but offers the advantages of speed and better coverage, making it less costly to use. According to Christman, painters can reap benefits once they understand the process.

“It’s much faster, which high-volume direct repair program shops love, and you use less material,” said Christman. “So it’s great not only for reducing the cost, but because it speeds cars through the shop, it increases the capacity of the body shop. They can sell more jobs and create more revenue.”

Conversion Equipment Requirements

In California, most shops have already converted to waterborne paint. In other states, many paint shops have put off the transition, in part because of cost concerns.

“It’s a myth that you’ve got to buy all kinds of new equipment and put in new spray booths to convert,” Christman noted. “The truth is, they’re going to need a new gun—a stainless-steel gun, because you don’t want rust in your spray gun.”

In addition to a new paint gun, waterborne paint does like to have large volumes of clean air to enhance drying.

“For water, the key to drying is air flow—getting air to move across the surface of the car to make it dry,” Christman said. “However, the car will also dry without great air flow; it just will take longer. So if you’re a production shop that’s trying to move cars through, you’re going to want to put in blowers to get a lot of air movement to get the cars to dry super-fast. But if you’re a custom shop or a smaller shop that doesn’t have cars stacked up outside and you want to put in a small box fan to get a little air movement, that’s all it takes. The difference will be, maybe, instead of drying in 10 minutes, you’ll dry in 30 minutes. For a production shop, that’s a big deal. For a custom shop, probably not to them.”

To add another voice to the conversion, we talked to Douglas Albin of Bodyworks Collision Center in Murietta, California. His shop, which grosses about $250,000 a month, has been using waterborne paint for about five years.

“I converted before it was mandatory,” he said. “I wanted to be ahead of the curve.”

After a period of experimentation, Albin has adjusted his process to make the most of waterborne technology, and he noted some differences.

“With water-based versus solvent, it’s a lot more forgiving,” he said. “Your blending techniques are a little bit easier. It’s not as susceptible to contamination, dirt. We also had to fine-tune our prepping—we had to have a cleaner job, a tighter wrap.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Even though waterborne paint is less toxic and offers easier disposal and cleanup, painters will still want to use a fresh-air system, gloves and a spray suit, because paint is still a chemical.
   
Initially, Albin was using a waterborne paint from his long-time supplier. And he stuck to a process that required multiple coats.

“When water-based paint came and we made the change, I was only getting through two to three cars a day with a $100,000 full-downdraft, 30-foot booth with mixing room,” he explained. “Then I noticed a big difference in the actual manufacturers of the paint. When I first made the transition, I was literally putting on five and six coats and waiting 20 minutes between coats for it to completely flash. Now I paint 12 cars a day, without a $15,000 retrofitted jet dry system. So we mastered it really quick,” said Albin, who now uses DuPont Cromax Pro. “The major expense was training.”

“Painters are going to have to be completely retrained. A lot of them struggled with it. So we really had to go in and retrain them, but once they’re trained, they will never want to go back to the old paint system.”

The Don Ayres Honda Collision Center, located in the area of Fort Wayne, Indiana, is another top-tier production body shop that recently switched to waterborne and does about $2 million a year in total sales. Manager Kevin Cox agreed that painters will need to get used to the new paint technology.

“Painters need to learn a little different technique,” he said. “Both my painters spent two and a half days at a DuPont training center. And then Dupont was in here for one full week after with both of them. But the transitions that the industry went through in the days of lacquer, then to acrylic enamels, then to base coat/clear coat—this transition from solvent to water is a baby step compared to the days of spraying lacquer.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Waterborne paint requires a spray gun with stainless-steel parts, which means most shops will want a new gun for each painter. Suitable spray guns are widely available; companies such as Optima, Eastwood and Iwata all had newly designed stainless-steel guns on display at the SEMA Show in 2011. This gun, introduced at the Show by SATA Spray Equipment, is a special-edition SATAjet 4000 B.
   
Cox decided to make the jump to waterborne paint just recently as VOC requirements began to get tighter.

“Everybody’s kind of wigged out over water,” he said. “I was one of those guys—why fix something that’s not broken? But we have some compliance issues with regard to the state of Indiana for VOC compliance and overspray containment. And we thought, well, if we’re going to do this, let’s go ahead and make our transition to water-base paint, so when they walk in the door, they see we’re proactive.

“In all reality, we’re probably four to five years away in this part of the country from any sort of mandate. But I would say embrace it. The time factor and the coverage of the base coat is so much better than solvent, and there is so much waterborne product being applied at the OEM level, it gives you a lot better chance to hit color matches, because you’re putting water against water.”

Cox doesn’t think there is a huge amount of risk in making the conversion to a waterborne paint system.

“I would think any jobber in a given market who is representing any of the Big Three, if they’re transitioning a shop to water, they’re not going to set that shop up for failure,” he said. “And the manufacturers—be it BASF, DuPont, whoever it is—they’re walking on top of each other to get the business. They’re not going to shoot themselves in the foot when it comes to support.

“Cost, for most shops, will depend on what they go with. We went with a blower system with a stainless-steel fan about 12 inches in diameter and about 8 inches deep. We spent maybe $5,500. It’s air driven, so we did have to run some air lines to it, but it wasn’t any big engineering feat.

“You do have to get a new gun; there’s a couple out there to choose from. Actually, through our jobber, it was all part of a kit—they give you the choice of the gun. It changes your cleaning process a little. It’s also going to lower some of your waste issues.”

Albin, with his shop in California, confirmed a reduction in waste-disposal costs.

“We put anything solvent-based in a 55-gallon drum,” he said. “We have thinners to clean that, so we’ve got our thinner cost—about $300 bucks. It’s gone down because of water-based, so we’re only buying one of those a month, versus two.”

When Speed Is Less Important

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Collision and repair industry manufacturers have already geared up with disposable products suitable for use with waterborne paint, such as masking tape that resists waterborne paint’s tendency to bleed under tape. The tack cloths shown here are marketed as ideal for use with waterborne paint.
   
Brian Ferre, a long-time professional painter and instructor at LA Trade-Tech, worked in a volume body shop when waterborne paint was first introduced and now is involved in training young painters to move into body-shop jobs. In his arena, speed is not so important, but technique and quality are.

“My advice would be not to be scared of it,” Ferre said. “If you’re an open-minded professional painter, the transition will be no problem at all. “

Through his teaching, Ferre has had experience with a lot of different paint formulas.

“I’ve painted with pretty much all the water bases; teaching wise, I try to shoot pretty much everything I can get my hands on,” he said. “All the waterborne products, across the board, the technique for the painter has to be very even. It’s almost like painting custom paint jobs, where you have to be on your game a little bit more to make it even. The DuPont brand, I would say, is pretty goof-proof, even for a student.”

Ferre noted that using waterborne paint offers advantages but also requires using different masking materials.

“In the beginning, when doing multiple colors and taping up, the paint manufacturers had to come up with different tape where it wouldn’t bleed underneath,” he said. “Water has a tendency to bleed a little bit underneath the tape. So they came out with different plastic tapes.”

Water-based paint also offers certain advantages to a custom shop, where speed is not the primary consideration.

“Another advantage,” Ferre said, “is your clear has better adhesion. So you can leave the base coat open longer than you can a solvent-based paint. There’s a certain window that you have to hit to clear coat solvent-based paints, and that window is open longer with water-base. You can leave it open and come back on top of it later, and you won’t have any adhesion problems later on.” According to sources at DuPont, painters can wait up to 72 hours before applying clear.

Ferre also noted that water-based paint is now often used on race cars. Although the paint itself is not lighter, the thinner waterborne paint film adds less weight. “Racers are very conscious about adding weight,” he said. “So racers like it.”

Sun, 04/01/2012 - 10:07

SEMA News—April 2012

INDUSTRY SNAPSHOT
By John Stewart

A Fresh Coat

How Waterborne Paint Is Changing The Automotive Industry

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
In California, where regulation of volatile organic compounds has been in place for years, use of waterborne paint in body shops and custom shops is already commonplace.
   
Paint has long been a necessary product in the automotive world. Customizers and aftermarket manufacturers are among those who require paint products to conduct business. Perhaps the most prolific painters in the automotive sector, other than OEMs, would be shops operating in the repair and refinish segment. These are auto-body shops that make a living on being able to paint fast, match colors perfectly and be economical in the process.
Because volatile organic compounds (VOC) in paint have been recognized as bad for the environment, there is change afoot that will eventually affect practically everyone who paints. A number of states around the country have enacted regulations that are gradually forcing shops to reduce VOC emissions. These regulations, in a nutshell, mean that American paint shops will need to use waterborne paints in order to comply.

The move to less toxic, water-based finishes is already well under way elsewhere. Waterborne paints are currently in extensive use in Europe and Canada, and many OEMs now use water-based paints on their newest products. Paint manufacturers are also moving quickly to develop low-VOC primers and clear-coat products in addition to the color coats available now.

In high-smog states like California, regulations requiring low-VOC technologies have been in place for years, and now other states are following suit. To find out what these requirements will mean as low-VOC requirements spread across the country, SEMA News contacted a variety of stakeholders in the paint industry. We specifically sought information about the newest technology as it stands today and what it will mean to companies that paint.

The consensus among the people we talked to is that the transition to waterborne finish products may not be as difficult or as costly as some first supposed. In fact, the changeover may bring with it a number of advantages.

Paint Formula Advancements

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
An entirely new paint booth, such as this one on display at the SEMA Show, would not likely be required to make the transition to waterborne paint. However, an ample supply of clean air is an upgrade most production body shops choose to make in order to shorten drying time.
   
One of the biggest areas of activity is at the paint manufacturer level, where the transition to waterborne paint has prompted paint companies to develop new products from scratch. Some are now releasing second- and third-generation water-based paints.

“We’ve been doing waterborne for quite a long time; CroMax Pro is our third-generation waterborne product,” said Harry Christman, brand manager for DuPont Refinish. “This is a product that has a brand-new technology.”

The newest waterborne paint from DuPont is a good example of the kinds of paints the industry will need to come up with to help shops achieve low-VOC requirements. It’s formulated with 88% less solvent but 25% more pigment. The result is a product that offers advantages but also requires re-educating painters.

“Most other waterborne products went in the direction of trying to create a waterborne paint that was like solvent-based paint,” Christman explained. “Solvent is the old technology, and painters tend to dislike change. So many paint companies, when they created their waterborne paint, said ‘we’re going to make them like solvent.’ We went a different direction.

“It’s a higher solids product, so it’s got more of the stuff that gets left behind when the water evaporates off. It’s a one-and-a-half coat, wet-on-wet process. Rather than having to lay down a coat of paint, let it flash, then lay down another one, let it flash—and, depending on what you’re working with, lay down four, five, six coats—with Cromax Pro, you cover in one and a half coats. And anything that doesn’t cover in one and a half coats covers in two coats. So you go in, put on the first coat, go right back and put on your mist coat, your ‘effect’ coat, which is half a coat. Then you’re done. You can put the gun away; leave the booth. It will dry, and then you can clear coat it.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Next-generation waterborne paints such as the DuPont product shown here are now becoming available to the industry. Formulated with much less solvent but more pigment, this third-generation paint is designed to cover completely in one to two coats using a fast, wet-on-wet application process.
   
The newest DuPont paint costs a little more per gallon but offers the advantages of speed and better coverage, making it less costly to use. According to Christman, painters can reap benefits once they understand the process.

“It’s much faster, which high-volume direct repair program shops love, and you use less material,” said Christman. “So it’s great not only for reducing the cost, but because it speeds cars through the shop, it increases the capacity of the body shop. They can sell more jobs and create more revenue.”

Conversion Equipment Requirements

In California, most shops have already converted to waterborne paint. In other states, many paint shops have put off the transition, in part because of cost concerns.

“It’s a myth that you’ve got to buy all kinds of new equipment and put in new spray booths to convert,” Christman noted. “The truth is, they’re going to need a new gun—a stainless-steel gun, because you don’t want rust in your spray gun.”

In addition to a new paint gun, waterborne paint does like to have large volumes of clean air to enhance drying.

“For water, the key to drying is air flow—getting air to move across the surface of the car to make it dry,” Christman said. “However, the car will also dry without great air flow; it just will take longer. So if you’re a production shop that’s trying to move cars through, you’re going to want to put in blowers to get a lot of air movement to get the cars to dry super-fast. But if you’re a custom shop or a smaller shop that doesn’t have cars stacked up outside and you want to put in a small box fan to get a little air movement, that’s all it takes. The difference will be, maybe, instead of drying in 10 minutes, you’ll dry in 30 minutes. For a production shop, that’s a big deal. For a custom shop, probably not to them.”

To add another voice to the conversion, we talked to Douglas Albin of Bodyworks Collision Center in Murietta, California. His shop, which grosses about $250,000 a month, has been using waterborne paint for about five years.

“I converted before it was mandatory,” he said. “I wanted to be ahead of the curve.”

After a period of experimentation, Albin has adjusted his process to make the most of waterborne technology, and he noted some differences.

“With water-based versus solvent, it’s a lot more forgiving,” he said. “Your blending techniques are a little bit easier. It’s not as susceptible to contamination, dirt. We also had to fine-tune our prepping—we had to have a cleaner job, a tighter wrap.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Even though waterborne paint is less toxic and offers easier disposal and cleanup, painters will still want to use a fresh-air system, gloves and a spray suit, because paint is still a chemical.
   
Initially, Albin was using a waterborne paint from his long-time supplier. And he stuck to a process that required multiple coats.

“When water-based paint came and we made the change, I was only getting through two to three cars a day with a $100,000 full-downdraft, 30-foot booth with mixing room,” he explained. “Then I noticed a big difference in the actual manufacturers of the paint. When I first made the transition, I was literally putting on five and six coats and waiting 20 minutes between coats for it to completely flash. Now I paint 12 cars a day, without a $15,000 retrofitted jet dry system. So we mastered it really quick,” said Albin, who now uses DuPont Cromax Pro. “The major expense was training.”

“Painters are going to have to be completely retrained. A lot of them struggled with it. So we really had to go in and retrain them, but once they’re trained, they will never want to go back to the old paint system.”

The Don Ayres Honda Collision Center, located in the area of Fort Wayne, Indiana, is another top-tier production body shop that recently switched to waterborne and does about $2 million a year in total sales. Manager Kevin Cox agreed that painters will need to get used to the new paint technology.

“Painters need to learn a little different technique,” he said. “Both my painters spent two and a half days at a DuPont training center. And then Dupont was in here for one full week after with both of them. But the transitions that the industry went through in the days of lacquer, then to acrylic enamels, then to base coat/clear coat—this transition from solvent to water is a baby step compared to the days of spraying lacquer.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Waterborne paint requires a spray gun with stainless-steel parts, which means most shops will want a new gun for each painter. Suitable spray guns are widely available; companies such as Optima, Eastwood and Iwata all had newly designed stainless-steel guns on display at the SEMA Show in 2011. This gun, introduced at the Show by SATA Spray Equipment, is a special-edition SATAjet 4000 B.
   
Cox decided to make the jump to waterborne paint just recently as VOC requirements began to get tighter.

“Everybody’s kind of wigged out over water,” he said. “I was one of those guys—why fix something that’s not broken? But we have some compliance issues with regard to the state of Indiana for VOC compliance and overspray containment. And we thought, well, if we’re going to do this, let’s go ahead and make our transition to water-base paint, so when they walk in the door, they see we’re proactive.

“In all reality, we’re probably four to five years away in this part of the country from any sort of mandate. But I would say embrace it. The time factor and the coverage of the base coat is so much better than solvent, and there is so much waterborne product being applied at the OEM level, it gives you a lot better chance to hit color matches, because you’re putting water against water.”

Cox doesn’t think there is a huge amount of risk in making the conversion to a waterborne paint system.

“I would think any jobber in a given market who is representing any of the Big Three, if they’re transitioning a shop to water, they’re not going to set that shop up for failure,” he said. “And the manufacturers—be it BASF, DuPont, whoever it is—they’re walking on top of each other to get the business. They’re not going to shoot themselves in the foot when it comes to support.

“Cost, for most shops, will depend on what they go with. We went with a blower system with a stainless-steel fan about 12 inches in diameter and about 8 inches deep. We spent maybe $5,500. It’s air driven, so we did have to run some air lines to it, but it wasn’t any big engineering feat.

“You do have to get a new gun; there’s a couple out there to choose from. Actually, through our jobber, it was all part of a kit—they give you the choice of the gun. It changes your cleaning process a little. It’s also going to lower some of your waste issues.”

Albin, with his shop in California, confirmed a reduction in waste-disposal costs.

“We put anything solvent-based in a 55-gallon drum,” he said. “We have thinners to clean that, so we’ve got our thinner cost—about $300 bucks. It’s gone down because of water-based, so we’re only buying one of those a month, versus two.”

When Speed Is Less Important

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Collision and repair industry manufacturers have already geared up with disposable products suitable for use with waterborne paint, such as masking tape that resists waterborne paint’s tendency to bleed under tape. The tack cloths shown here are marketed as ideal for use with waterborne paint.
   
Brian Ferre, a long-time professional painter and instructor at LA Trade-Tech, worked in a volume body shop when waterborne paint was first introduced and now is involved in training young painters to move into body-shop jobs. In his arena, speed is not so important, but technique and quality are.

“My advice would be not to be scared of it,” Ferre said. “If you’re an open-minded professional painter, the transition will be no problem at all. “

Through his teaching, Ferre has had experience with a lot of different paint formulas.

“I’ve painted with pretty much all the water bases; teaching wise, I try to shoot pretty much everything I can get my hands on,” he said. “All the waterborne products, across the board, the technique for the painter has to be very even. It’s almost like painting custom paint jobs, where you have to be on your game a little bit more to make it even. The DuPont brand, I would say, is pretty goof-proof, even for a student.”

Ferre noted that using waterborne paint offers advantages but also requires using different masking materials.

“In the beginning, when doing multiple colors and taping up, the paint manufacturers had to come up with different tape where it wouldn’t bleed underneath,” he said. “Water has a tendency to bleed a little bit underneath the tape. So they came out with different plastic tapes.”

Water-based paint also offers certain advantages to a custom shop, where speed is not the primary consideration.

“Another advantage,” Ferre said, “is your clear has better adhesion. So you can leave the base coat open longer than you can a solvent-based paint. There’s a certain window that you have to hit to clear coat solvent-based paints, and that window is open longer with water-base. You can leave it open and come back on top of it later, and you won’t have any adhesion problems later on.” According to sources at DuPont, painters can wait up to 72 hours before applying clear.

Ferre also noted that water-based paint is now often used on race cars. Although the paint itself is not lighter, the thinner waterborne paint film adds less weight. “Racers are very conscious about adding weight,” he said. “So racers like it.”

Sun, 04/01/2012 - 10:07

SEMA News—April 2012

INDUSTRY SNAPSHOT
By John Stewart

A Fresh Coat

How Waterborne Paint Is Changing The Automotive Industry

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
In California, where regulation of volatile organic compounds has been in place for years, use of waterborne paint in body shops and custom shops is already commonplace.
   
Paint has long been a necessary product in the automotive world. Customizers and aftermarket manufacturers are among those who require paint products to conduct business. Perhaps the most prolific painters in the automotive sector, other than OEMs, would be shops operating in the repair and refinish segment. These are auto-body shops that make a living on being able to paint fast, match colors perfectly and be economical in the process.
Because volatile organic compounds (VOC) in paint have been recognized as bad for the environment, there is change afoot that will eventually affect practically everyone who paints. A number of states around the country have enacted regulations that are gradually forcing shops to reduce VOC emissions. These regulations, in a nutshell, mean that American paint shops will need to use waterborne paints in order to comply.

The move to less toxic, water-based finishes is already well under way elsewhere. Waterborne paints are currently in extensive use in Europe and Canada, and many OEMs now use water-based paints on their newest products. Paint manufacturers are also moving quickly to develop low-VOC primers and clear-coat products in addition to the color coats available now.

In high-smog states like California, regulations requiring low-VOC technologies have been in place for years, and now other states are following suit. To find out what these requirements will mean as low-VOC requirements spread across the country, SEMA News contacted a variety of stakeholders in the paint industry. We specifically sought information about the newest technology as it stands today and what it will mean to companies that paint.

The consensus among the people we talked to is that the transition to waterborne finish products may not be as difficult or as costly as some first supposed. In fact, the changeover may bring with it a number of advantages.

Paint Formula Advancements

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
An entirely new paint booth, such as this one on display at the SEMA Show, would not likely be required to make the transition to waterborne paint. However, an ample supply of clean air is an upgrade most production body shops choose to make in order to shorten drying time.
   
One of the biggest areas of activity is at the paint manufacturer level, where the transition to waterborne paint has prompted paint companies to develop new products from scratch. Some are now releasing second- and third-generation water-based paints.

“We’ve been doing waterborne for quite a long time; CroMax Pro is our third-generation waterborne product,” said Harry Christman, brand manager for DuPont Refinish. “This is a product that has a brand-new technology.”

The newest waterborne paint from DuPont is a good example of the kinds of paints the industry will need to come up with to help shops achieve low-VOC requirements. It’s formulated with 88% less solvent but 25% more pigment. The result is a product that offers advantages but also requires re-educating painters.

“Most other waterborne products went in the direction of trying to create a waterborne paint that was like solvent-based paint,” Christman explained. “Solvent is the old technology, and painters tend to dislike change. So many paint companies, when they created their waterborne paint, said ‘we’re going to make them like solvent.’ We went a different direction.

“It’s a higher solids product, so it’s got more of the stuff that gets left behind when the water evaporates off. It’s a one-and-a-half coat, wet-on-wet process. Rather than having to lay down a coat of paint, let it flash, then lay down another one, let it flash—and, depending on what you’re working with, lay down four, five, six coats—with Cromax Pro, you cover in one and a half coats. And anything that doesn’t cover in one and a half coats covers in two coats. So you go in, put on the first coat, go right back and put on your mist coat, your ‘effect’ coat, which is half a coat. Then you’re done. You can put the gun away; leave the booth. It will dry, and then you can clear coat it.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Next-generation waterborne paints such as the DuPont product shown here are now becoming available to the industry. Formulated with much less solvent but more pigment, this third-generation paint is designed to cover completely in one to two coats using a fast, wet-on-wet application process.
   
The newest DuPont paint costs a little more per gallon but offers the advantages of speed and better coverage, making it less costly to use. According to Christman, painters can reap benefits once they understand the process.

“It’s much faster, which high-volume direct repair program shops love, and you use less material,” said Christman. “So it’s great not only for reducing the cost, but because it speeds cars through the shop, it increases the capacity of the body shop. They can sell more jobs and create more revenue.”

Conversion Equipment Requirements

In California, most shops have already converted to waterborne paint. In other states, many paint shops have put off the transition, in part because of cost concerns.

“It’s a myth that you’ve got to buy all kinds of new equipment and put in new spray booths to convert,” Christman noted. “The truth is, they’re going to need a new gun—a stainless-steel gun, because you don’t want rust in your spray gun.”

In addition to a new paint gun, waterborne paint does like to have large volumes of clean air to enhance drying.

“For water, the key to drying is air flow—getting air to move across the surface of the car to make it dry,” Christman said. “However, the car will also dry without great air flow; it just will take longer. So if you’re a production shop that’s trying to move cars through, you’re going to want to put in blowers to get a lot of air movement to get the cars to dry super-fast. But if you’re a custom shop or a smaller shop that doesn’t have cars stacked up outside and you want to put in a small box fan to get a little air movement, that’s all it takes. The difference will be, maybe, instead of drying in 10 minutes, you’ll dry in 30 minutes. For a production shop, that’s a big deal. For a custom shop, probably not to them.”

To add another voice to the conversion, we talked to Douglas Albin of Bodyworks Collision Center in Murietta, California. His shop, which grosses about $250,000 a month, has been using waterborne paint for about five years.

“I converted before it was mandatory,” he said. “I wanted to be ahead of the curve.”

After a period of experimentation, Albin has adjusted his process to make the most of waterborne technology, and he noted some differences.

“With water-based versus solvent, it’s a lot more forgiving,” he said. “Your blending techniques are a little bit easier. It’s not as susceptible to contamination, dirt. We also had to fine-tune our prepping—we had to have a cleaner job, a tighter wrap.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Even though waterborne paint is less toxic and offers easier disposal and cleanup, painters will still want to use a fresh-air system, gloves and a spray suit, because paint is still a chemical.
   
Initially, Albin was using a waterborne paint from his long-time supplier. And he stuck to a process that required multiple coats.

“When water-based paint came and we made the change, I was only getting through two to three cars a day with a $100,000 full-downdraft, 30-foot booth with mixing room,” he explained. “Then I noticed a big difference in the actual manufacturers of the paint. When I first made the transition, I was literally putting on five and six coats and waiting 20 minutes between coats for it to completely flash. Now I paint 12 cars a day, without a $15,000 retrofitted jet dry system. So we mastered it really quick,” said Albin, who now uses DuPont Cromax Pro. “The major expense was training.”

“Painters are going to have to be completely retrained. A lot of them struggled with it. So we really had to go in and retrain them, but once they’re trained, they will never want to go back to the old paint system.”

The Don Ayres Honda Collision Center, located in the area of Fort Wayne, Indiana, is another top-tier production body shop that recently switched to waterborne and does about $2 million a year in total sales. Manager Kevin Cox agreed that painters will need to get used to the new paint technology.

“Painters need to learn a little different technique,” he said. “Both my painters spent two and a half days at a DuPont training center. And then Dupont was in here for one full week after with both of them. But the transitions that the industry went through in the days of lacquer, then to acrylic enamels, then to base coat/clear coat—this transition from solvent to water is a baby step compared to the days of spraying lacquer.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Waterborne paint requires a spray gun with stainless-steel parts, which means most shops will want a new gun for each painter. Suitable spray guns are widely available; companies such as Optima, Eastwood and Iwata all had newly designed stainless-steel guns on display at the SEMA Show in 2011. This gun, introduced at the Show by SATA Spray Equipment, is a special-edition SATAjet 4000 B.
   
Cox decided to make the jump to waterborne paint just recently as VOC requirements began to get tighter.

“Everybody’s kind of wigged out over water,” he said. “I was one of those guys—why fix something that’s not broken? But we have some compliance issues with regard to the state of Indiana for VOC compliance and overspray containment. And we thought, well, if we’re going to do this, let’s go ahead and make our transition to water-base paint, so when they walk in the door, they see we’re proactive.

“In all reality, we’re probably four to five years away in this part of the country from any sort of mandate. But I would say embrace it. The time factor and the coverage of the base coat is so much better than solvent, and there is so much waterborne product being applied at the OEM level, it gives you a lot better chance to hit color matches, because you’re putting water against water.”

Cox doesn’t think there is a huge amount of risk in making the conversion to a waterborne paint system.

“I would think any jobber in a given market who is representing any of the Big Three, if they’re transitioning a shop to water, they’re not going to set that shop up for failure,” he said. “And the manufacturers—be it BASF, DuPont, whoever it is—they’re walking on top of each other to get the business. They’re not going to shoot themselves in the foot when it comes to support.

“Cost, for most shops, will depend on what they go with. We went with a blower system with a stainless-steel fan about 12 inches in diameter and about 8 inches deep. We spent maybe $5,500. It’s air driven, so we did have to run some air lines to it, but it wasn’t any big engineering feat.

“You do have to get a new gun; there’s a couple out there to choose from. Actually, through our jobber, it was all part of a kit—they give you the choice of the gun. It changes your cleaning process a little. It’s also going to lower some of your waste issues.”

Albin, with his shop in California, confirmed a reduction in waste-disposal costs.

“We put anything solvent-based in a 55-gallon drum,” he said. “We have thinners to clean that, so we’ve got our thinner cost—about $300 bucks. It’s gone down because of water-based, so we’re only buying one of those a month, versus two.”

When Speed Is Less Important

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Collision and repair industry manufacturers have already geared up with disposable products suitable for use with waterborne paint, such as masking tape that resists waterborne paint’s tendency to bleed under tape. The tack cloths shown here are marketed as ideal for use with waterborne paint.
   
Brian Ferre, a long-time professional painter and instructor at LA Trade-Tech, worked in a volume body shop when waterborne paint was first introduced and now is involved in training young painters to move into body-shop jobs. In his arena, speed is not so important, but technique and quality are.

“My advice would be not to be scared of it,” Ferre said. “If you’re an open-minded professional painter, the transition will be no problem at all. “

Through his teaching, Ferre has had experience with a lot of different paint formulas.

“I’ve painted with pretty much all the water bases; teaching wise, I try to shoot pretty much everything I can get my hands on,” he said. “All the waterborne products, across the board, the technique for the painter has to be very even. It’s almost like painting custom paint jobs, where you have to be on your game a little bit more to make it even. The DuPont brand, I would say, is pretty goof-proof, even for a student.”

Ferre noted that using waterborne paint offers advantages but also requires using different masking materials.

“In the beginning, when doing multiple colors and taping up, the paint manufacturers had to come up with different tape where it wouldn’t bleed underneath,” he said. “Water has a tendency to bleed a little bit underneath the tape. So they came out with different plastic tapes.”

Water-based paint also offers certain advantages to a custom shop, where speed is not the primary consideration.

“Another advantage,” Ferre said, “is your clear has better adhesion. So you can leave the base coat open longer than you can a solvent-based paint. There’s a certain window that you have to hit to clear coat solvent-based paints, and that window is open longer with water-base. You can leave it open and come back on top of it later, and you won’t have any adhesion problems later on.” According to sources at DuPont, painters can wait up to 72 hours before applying clear.

Ferre also noted that water-based paint is now often used on race cars. Although the paint itself is not lighter, the thinner waterborne paint film adds less weight. “Racers are very conscious about adding weight,” he said. “So racers like it.”

Sun, 04/01/2012 - 10:07

SEMA News—April 2012

INDUSTRY SNAPSHOT
By John Stewart

A Fresh Coat

How Waterborne Paint Is Changing The Automotive Industry

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
In California, where regulation of volatile organic compounds has been in place for years, use of waterborne paint in body shops and custom shops is already commonplace.
   
Paint has long been a necessary product in the automotive world. Customizers and aftermarket manufacturers are among those who require paint products to conduct business. Perhaps the most prolific painters in the automotive sector, other than OEMs, would be shops operating in the repair and refinish segment. These are auto-body shops that make a living on being able to paint fast, match colors perfectly and be economical in the process.
Because volatile organic compounds (VOC) in paint have been recognized as bad for the environment, there is change afoot that will eventually affect practically everyone who paints. A number of states around the country have enacted regulations that are gradually forcing shops to reduce VOC emissions. These regulations, in a nutshell, mean that American paint shops will need to use waterborne paints in order to comply.

The move to less toxic, water-based finishes is already well under way elsewhere. Waterborne paints are currently in extensive use in Europe and Canada, and many OEMs now use water-based paints on their newest products. Paint manufacturers are also moving quickly to develop low-VOC primers and clear-coat products in addition to the color coats available now.

In high-smog states like California, regulations requiring low-VOC technologies have been in place for years, and now other states are following suit. To find out what these requirements will mean as low-VOC requirements spread across the country, SEMA News contacted a variety of stakeholders in the paint industry. We specifically sought information about the newest technology as it stands today and what it will mean to companies that paint.

The consensus among the people we talked to is that the transition to waterborne finish products may not be as difficult or as costly as some first supposed. In fact, the changeover may bring with it a number of advantages.

Paint Formula Advancements

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
An entirely new paint booth, such as this one on display at the SEMA Show, would not likely be required to make the transition to waterborne paint. However, an ample supply of clean air is an upgrade most production body shops choose to make in order to shorten drying time.
   
One of the biggest areas of activity is at the paint manufacturer level, where the transition to waterborne paint has prompted paint companies to develop new products from scratch. Some are now releasing second- and third-generation water-based paints.

“We’ve been doing waterborne for quite a long time; CroMax Pro is our third-generation waterborne product,” said Harry Christman, brand manager for DuPont Refinish. “This is a product that has a brand-new technology.”

The newest waterborne paint from DuPont is a good example of the kinds of paints the industry will need to come up with to help shops achieve low-VOC requirements. It’s formulated with 88% less solvent but 25% more pigment. The result is a product that offers advantages but also requires re-educating painters.

“Most other waterborne products went in the direction of trying to create a waterborne paint that was like solvent-based paint,” Christman explained. “Solvent is the old technology, and painters tend to dislike change. So many paint companies, when they created their waterborne paint, said ‘we’re going to make them like solvent.’ We went a different direction.

“It’s a higher solids product, so it’s got more of the stuff that gets left behind when the water evaporates off. It’s a one-and-a-half coat, wet-on-wet process. Rather than having to lay down a coat of paint, let it flash, then lay down another one, let it flash—and, depending on what you’re working with, lay down four, five, six coats—with Cromax Pro, you cover in one and a half coats. And anything that doesn’t cover in one and a half coats covers in two coats. So you go in, put on the first coat, go right back and put on your mist coat, your ‘effect’ coat, which is half a coat. Then you’re done. You can put the gun away; leave the booth. It will dry, and then you can clear coat it.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Next-generation waterborne paints such as the DuPont product shown here are now becoming available to the industry. Formulated with much less solvent but more pigment, this third-generation paint is designed to cover completely in one to two coats using a fast, wet-on-wet application process.
   
The newest DuPont paint costs a little more per gallon but offers the advantages of speed and better coverage, making it less costly to use. According to Christman, painters can reap benefits once they understand the process.

“It’s much faster, which high-volume direct repair program shops love, and you use less material,” said Christman. “So it’s great not only for reducing the cost, but because it speeds cars through the shop, it increases the capacity of the body shop. They can sell more jobs and create more revenue.”

Conversion Equipment Requirements

In California, most shops have already converted to waterborne paint. In other states, many paint shops have put off the transition, in part because of cost concerns.

“It’s a myth that you’ve got to buy all kinds of new equipment and put in new spray booths to convert,” Christman noted. “The truth is, they’re going to need a new gun—a stainless-steel gun, because you don’t want rust in your spray gun.”

In addition to a new paint gun, waterborne paint does like to have large volumes of clean air to enhance drying.

“For water, the key to drying is air flow—getting air to move across the surface of the car to make it dry,” Christman said. “However, the car will also dry without great air flow; it just will take longer. So if you’re a production shop that’s trying to move cars through, you’re going to want to put in blowers to get a lot of air movement to get the cars to dry super-fast. But if you’re a custom shop or a smaller shop that doesn’t have cars stacked up outside and you want to put in a small box fan to get a little air movement, that’s all it takes. The difference will be, maybe, instead of drying in 10 minutes, you’ll dry in 30 minutes. For a production shop, that’s a big deal. For a custom shop, probably not to them.”

To add another voice to the conversion, we talked to Douglas Albin of Bodyworks Collision Center in Murietta, California. His shop, which grosses about $250,000 a month, has been using waterborne paint for about five years.

“I converted before it was mandatory,” he said. “I wanted to be ahead of the curve.”

After a period of experimentation, Albin has adjusted his process to make the most of waterborne technology, and he noted some differences.

“With water-based versus solvent, it’s a lot more forgiving,” he said. “Your blending techniques are a little bit easier. It’s not as susceptible to contamination, dirt. We also had to fine-tune our prepping—we had to have a cleaner job, a tighter wrap.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Even though waterborne paint is less toxic and offers easier disposal and cleanup, painters will still want to use a fresh-air system, gloves and a spray suit, because paint is still a chemical.
   
Initially, Albin was using a waterborne paint from his long-time supplier. And he stuck to a process that required multiple coats.

“When water-based paint came and we made the change, I was only getting through two to three cars a day with a $100,000 full-downdraft, 30-foot booth with mixing room,” he explained. “Then I noticed a big difference in the actual manufacturers of the paint. When I first made the transition, I was literally putting on five and six coats and waiting 20 minutes between coats for it to completely flash. Now I paint 12 cars a day, without a $15,000 retrofitted jet dry system. So we mastered it really quick,” said Albin, who now uses DuPont Cromax Pro. “The major expense was training.”

“Painters are going to have to be completely retrained. A lot of them struggled with it. So we really had to go in and retrain them, but once they’re trained, they will never want to go back to the old paint system.”

The Don Ayres Honda Collision Center, located in the area of Fort Wayne, Indiana, is another top-tier production body shop that recently switched to waterborne and does about $2 million a year in total sales. Manager Kevin Cox agreed that painters will need to get used to the new paint technology.

“Painters need to learn a little different technique,” he said. “Both my painters spent two and a half days at a DuPont training center. And then Dupont was in here for one full week after with both of them. But the transitions that the industry went through in the days of lacquer, then to acrylic enamels, then to base coat/clear coat—this transition from solvent to water is a baby step compared to the days of spraying lacquer.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Waterborne paint requires a spray gun with stainless-steel parts, which means most shops will want a new gun for each painter. Suitable spray guns are widely available; companies such as Optima, Eastwood and Iwata all had newly designed stainless-steel guns on display at the SEMA Show in 2011. This gun, introduced at the Show by SATA Spray Equipment, is a special-edition SATAjet 4000 B.
   
Cox decided to make the jump to waterborne paint just recently as VOC requirements began to get tighter.

“Everybody’s kind of wigged out over water,” he said. “I was one of those guys—why fix something that’s not broken? But we have some compliance issues with regard to the state of Indiana for VOC compliance and overspray containment. And we thought, well, if we’re going to do this, let’s go ahead and make our transition to water-base paint, so when they walk in the door, they see we’re proactive.

“In all reality, we’re probably four to five years away in this part of the country from any sort of mandate. But I would say embrace it. The time factor and the coverage of the base coat is so much better than solvent, and there is so much waterborne product being applied at the OEM level, it gives you a lot better chance to hit color matches, because you’re putting water against water.”

Cox doesn’t think there is a huge amount of risk in making the conversion to a waterborne paint system.

“I would think any jobber in a given market who is representing any of the Big Three, if they’re transitioning a shop to water, they’re not going to set that shop up for failure,” he said. “And the manufacturers—be it BASF, DuPont, whoever it is—they’re walking on top of each other to get the business. They’re not going to shoot themselves in the foot when it comes to support.

“Cost, for most shops, will depend on what they go with. We went with a blower system with a stainless-steel fan about 12 inches in diameter and about 8 inches deep. We spent maybe $5,500. It’s air driven, so we did have to run some air lines to it, but it wasn’t any big engineering feat.

“You do have to get a new gun; there’s a couple out there to choose from. Actually, through our jobber, it was all part of a kit—they give you the choice of the gun. It changes your cleaning process a little. It’s also going to lower some of your waste issues.”

Albin, with his shop in California, confirmed a reduction in waste-disposal costs.

“We put anything solvent-based in a 55-gallon drum,” he said. “We have thinners to clean that, so we’ve got our thinner cost—about $300 bucks. It’s gone down because of water-based, so we’re only buying one of those a month, versus two.”

When Speed Is Less Important

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Collision and repair industry manufacturers have already geared up with disposable products suitable for use with waterborne paint, such as masking tape that resists waterborne paint’s tendency to bleed under tape. The tack cloths shown here are marketed as ideal for use with waterborne paint.
   
Brian Ferre, a long-time professional painter and instructor at LA Trade-Tech, worked in a volume body shop when waterborne paint was first introduced and now is involved in training young painters to move into body-shop jobs. In his arena, speed is not so important, but technique and quality are.

“My advice would be not to be scared of it,” Ferre said. “If you’re an open-minded professional painter, the transition will be no problem at all. “

Through his teaching, Ferre has had experience with a lot of different paint formulas.

“I’ve painted with pretty much all the water bases; teaching wise, I try to shoot pretty much everything I can get my hands on,” he said. “All the waterborne products, across the board, the technique for the painter has to be very even. It’s almost like painting custom paint jobs, where you have to be on your game a little bit more to make it even. The DuPont brand, I would say, is pretty goof-proof, even for a student.”

Ferre noted that using waterborne paint offers advantages but also requires using different masking materials.

“In the beginning, when doing multiple colors and taping up, the paint manufacturers had to come up with different tape where it wouldn’t bleed underneath,” he said. “Water has a tendency to bleed a little bit underneath the tape. So they came out with different plastic tapes.”

Water-based paint also offers certain advantages to a custom shop, where speed is not the primary consideration.

“Another advantage,” Ferre said, “is your clear has better adhesion. So you can leave the base coat open longer than you can a solvent-based paint. There’s a certain window that you have to hit to clear coat solvent-based paints, and that window is open longer with water-base. You can leave it open and come back on top of it later, and you won’t have any adhesion problems later on.” According to sources at DuPont, painters can wait up to 72 hours before applying clear.

Ferre also noted that water-based paint is now often used on race cars. Although the paint itself is not lighter, the thinner waterborne paint film adds less weight. “Racers are very conscious about adding weight,” he said. “So racers like it.”

Sun, 04/01/2012 - 10:07

SEMA News—April 2012

INDUSTRY SNAPSHOT
By John Stewart

A Fresh Coat

How Waterborne Paint Is Changing The Automotive Industry

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
In California, where regulation of volatile organic compounds has been in place for years, use of waterborne paint in body shops and custom shops is already commonplace.
   
Paint has long been a necessary product in the automotive world. Customizers and aftermarket manufacturers are among those who require paint products to conduct business. Perhaps the most prolific painters in the automotive sector, other than OEMs, would be shops operating in the repair and refinish segment. These are auto-body shops that make a living on being able to paint fast, match colors perfectly and be economical in the process.
Because volatile organic compounds (VOC) in paint have been recognized as bad for the environment, there is change afoot that will eventually affect practically everyone who paints. A number of states around the country have enacted regulations that are gradually forcing shops to reduce VOC emissions. These regulations, in a nutshell, mean that American paint shops will need to use waterborne paints in order to comply.

The move to less toxic, water-based finishes is already well under way elsewhere. Waterborne paints are currently in extensive use in Europe and Canada, and many OEMs now use water-based paints on their newest products. Paint manufacturers are also moving quickly to develop low-VOC primers and clear-coat products in addition to the color coats available now.

In high-smog states like California, regulations requiring low-VOC technologies have been in place for years, and now other states are following suit. To find out what these requirements will mean as low-VOC requirements spread across the country, SEMA News contacted a variety of stakeholders in the paint industry. We specifically sought information about the newest technology as it stands today and what it will mean to companies that paint.

The consensus among the people we talked to is that the transition to waterborne finish products may not be as difficult or as costly as some first supposed. In fact, the changeover may bring with it a number of advantages.

Paint Formula Advancements

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
An entirely new paint booth, such as this one on display at the SEMA Show, would not likely be required to make the transition to waterborne paint. However, an ample supply of clean air is an upgrade most production body shops choose to make in order to shorten drying time.
   
One of the biggest areas of activity is at the paint manufacturer level, where the transition to waterborne paint has prompted paint companies to develop new products from scratch. Some are now releasing second- and third-generation water-based paints.

“We’ve been doing waterborne for quite a long time; CroMax Pro is our third-generation waterborne product,” said Harry Christman, brand manager for DuPont Refinish. “This is a product that has a brand-new technology.”

The newest waterborne paint from DuPont is a good example of the kinds of paints the industry will need to come up with to help shops achieve low-VOC requirements. It’s formulated with 88% less solvent but 25% more pigment. The result is a product that offers advantages but also requires re-educating painters.

“Most other waterborne products went in the direction of trying to create a waterborne paint that was like solvent-based paint,” Christman explained. “Solvent is the old technology, and painters tend to dislike change. So many paint companies, when they created their waterborne paint, said ‘we’re going to make them like solvent.’ We went a different direction.

“It’s a higher solids product, so it’s got more of the stuff that gets left behind when the water evaporates off. It’s a one-and-a-half coat, wet-on-wet process. Rather than having to lay down a coat of paint, let it flash, then lay down another one, let it flash—and, depending on what you’re working with, lay down four, five, six coats—with Cromax Pro, you cover in one and a half coats. And anything that doesn’t cover in one and a half coats covers in two coats. So you go in, put on the first coat, go right back and put on your mist coat, your ‘effect’ coat, which is half a coat. Then you’re done. You can put the gun away; leave the booth. It will dry, and then you can clear coat it.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Next-generation waterborne paints such as the DuPont product shown here are now becoming available to the industry. Formulated with much less solvent but more pigment, this third-generation paint is designed to cover completely in one to two coats using a fast, wet-on-wet application process.
   
The newest DuPont paint costs a little more per gallon but offers the advantages of speed and better coverage, making it less costly to use. According to Christman, painters can reap benefits once they understand the process.

“It’s much faster, which high-volume direct repair program shops love, and you use less material,” said Christman. “So it’s great not only for reducing the cost, but because it speeds cars through the shop, it increases the capacity of the body shop. They can sell more jobs and create more revenue.”

Conversion Equipment Requirements

In California, most shops have already converted to waterborne paint. In other states, many paint shops have put off the transition, in part because of cost concerns.

“It’s a myth that you’ve got to buy all kinds of new equipment and put in new spray booths to convert,” Christman noted. “The truth is, they’re going to need a new gun—a stainless-steel gun, because you don’t want rust in your spray gun.”

In addition to a new paint gun, waterborne paint does like to have large volumes of clean air to enhance drying.

“For water, the key to drying is air flow—getting air to move across the surface of the car to make it dry,” Christman said. “However, the car will also dry without great air flow; it just will take longer. So if you’re a production shop that’s trying to move cars through, you’re going to want to put in blowers to get a lot of air movement to get the cars to dry super-fast. But if you’re a custom shop or a smaller shop that doesn’t have cars stacked up outside and you want to put in a small box fan to get a little air movement, that’s all it takes. The difference will be, maybe, instead of drying in 10 minutes, you’ll dry in 30 minutes. For a production shop, that’s a big deal. For a custom shop, probably not to them.”

To add another voice to the conversion, we talked to Douglas Albin of Bodyworks Collision Center in Murietta, California. His shop, which grosses about $250,000 a month, has been using waterborne paint for about five years.

“I converted before it was mandatory,” he said. “I wanted to be ahead of the curve.”

After a period of experimentation, Albin has adjusted his process to make the most of waterborne technology, and he noted some differences.

“With water-based versus solvent, it’s a lot more forgiving,” he said. “Your blending techniques are a little bit easier. It’s not as susceptible to contamination, dirt. We also had to fine-tune our prepping—we had to have a cleaner job, a tighter wrap.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Even though waterborne paint is less toxic and offers easier disposal and cleanup, painters will still want to use a fresh-air system, gloves and a spray suit, because paint is still a chemical.
   
Initially, Albin was using a waterborne paint from his long-time supplier. And he stuck to a process that required multiple coats.

“When water-based paint came and we made the change, I was only getting through two to three cars a day with a $100,000 full-downdraft, 30-foot booth with mixing room,” he explained. “Then I noticed a big difference in the actual manufacturers of the paint. When I first made the transition, I was literally putting on five and six coats and waiting 20 minutes between coats for it to completely flash. Now I paint 12 cars a day, without a $15,000 retrofitted jet dry system. So we mastered it really quick,” said Albin, who now uses DuPont Cromax Pro. “The major expense was training.”

“Painters are going to have to be completely retrained. A lot of them struggled with it. So we really had to go in and retrain them, but once they’re trained, they will never want to go back to the old paint system.”

The Don Ayres Honda Collision Center, located in the area of Fort Wayne, Indiana, is another top-tier production body shop that recently switched to waterborne and does about $2 million a year in total sales. Manager Kevin Cox agreed that painters will need to get used to the new paint technology.

“Painters need to learn a little different technique,” he said. “Both my painters spent two and a half days at a DuPont training center. And then Dupont was in here for one full week after with both of them. But the transitions that the industry went through in the days of lacquer, then to acrylic enamels, then to base coat/clear coat—this transition from solvent to water is a baby step compared to the days of spraying lacquer.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Waterborne paint requires a spray gun with stainless-steel parts, which means most shops will want a new gun for each painter. Suitable spray guns are widely available; companies such as Optima, Eastwood and Iwata all had newly designed stainless-steel guns on display at the SEMA Show in 2011. This gun, introduced at the Show by SATA Spray Equipment, is a special-edition SATAjet 4000 B.
   
Cox decided to make the jump to waterborne paint just recently as VOC requirements began to get tighter.

“Everybody’s kind of wigged out over water,” he said. “I was one of those guys—why fix something that’s not broken? But we have some compliance issues with regard to the state of Indiana for VOC compliance and overspray containment. And we thought, well, if we’re going to do this, let’s go ahead and make our transition to water-base paint, so when they walk in the door, they see we’re proactive.

“In all reality, we’re probably four to five years away in this part of the country from any sort of mandate. But I would say embrace it. The time factor and the coverage of the base coat is so much better than solvent, and there is so much waterborne product being applied at the OEM level, it gives you a lot better chance to hit color matches, because you’re putting water against water.”

Cox doesn’t think there is a huge amount of risk in making the conversion to a waterborne paint system.

“I would think any jobber in a given market who is representing any of the Big Three, if they’re transitioning a shop to water, they’re not going to set that shop up for failure,” he said. “And the manufacturers—be it BASF, DuPont, whoever it is—they’re walking on top of each other to get the business. They’re not going to shoot themselves in the foot when it comes to support.

“Cost, for most shops, will depend on what they go with. We went with a blower system with a stainless-steel fan about 12 inches in diameter and about 8 inches deep. We spent maybe $5,500. It’s air driven, so we did have to run some air lines to it, but it wasn’t any big engineering feat.

“You do have to get a new gun; there’s a couple out there to choose from. Actually, through our jobber, it was all part of a kit—they give you the choice of the gun. It changes your cleaning process a little. It’s also going to lower some of your waste issues.”

Albin, with his shop in California, confirmed a reduction in waste-disposal costs.

“We put anything solvent-based in a 55-gallon drum,” he said. “We have thinners to clean that, so we’ve got our thinner cost—about $300 bucks. It’s gone down because of water-based, so we’re only buying one of those a month, versus two.”

When Speed Is Less Important

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Collision and repair industry manufacturers have already geared up with disposable products suitable for use with waterborne paint, such as masking tape that resists waterborne paint’s tendency to bleed under tape. The tack cloths shown here are marketed as ideal for use with waterborne paint.
   
Brian Ferre, a long-time professional painter and instructor at LA Trade-Tech, worked in a volume body shop when waterborne paint was first introduced and now is involved in training young painters to move into body-shop jobs. In his arena, speed is not so important, but technique and quality are.

“My advice would be not to be scared of it,” Ferre said. “If you’re an open-minded professional painter, the transition will be no problem at all. “

Through his teaching, Ferre has had experience with a lot of different paint formulas.

“I’ve painted with pretty much all the water bases; teaching wise, I try to shoot pretty much everything I can get my hands on,” he said. “All the waterborne products, across the board, the technique for the painter has to be very even. It’s almost like painting custom paint jobs, where you have to be on your game a little bit more to make it even. The DuPont brand, I would say, is pretty goof-proof, even for a student.”

Ferre noted that using waterborne paint offers advantages but also requires using different masking materials.

“In the beginning, when doing multiple colors and taping up, the paint manufacturers had to come up with different tape where it wouldn’t bleed underneath,” he said. “Water has a tendency to bleed a little bit underneath the tape. So they came out with different plastic tapes.”

Water-based paint also offers certain advantages to a custom shop, where speed is not the primary consideration.

“Another advantage,” Ferre said, “is your clear has better adhesion. So you can leave the base coat open longer than you can a solvent-based paint. There’s a certain window that you have to hit to clear coat solvent-based paints, and that window is open longer with water-base. You can leave it open and come back on top of it later, and you won’t have any adhesion problems later on.” According to sources at DuPont, painters can wait up to 72 hours before applying clear.

Ferre also noted that water-based paint is now often used on race cars. Although the paint itself is not lighter, the thinner waterborne paint film adds less weight. “Racers are very conscious about adding weight,” he said. “So racers like it.”

Sun, 04/01/2012 - 10:07

SEMA News—April 2012

INDUSTRY SNAPSHOT
By John Stewart

A Fresh Coat

How Waterborne Paint Is Changing The Automotive Industry

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
In California, where regulation of volatile organic compounds has been in place for years, use of waterborne paint in body shops and custom shops is already commonplace.
   
Paint has long been a necessary product in the automotive world. Customizers and aftermarket manufacturers are among those who require paint products to conduct business. Perhaps the most prolific painters in the automotive sector, other than OEMs, would be shops operating in the repair and refinish segment. These are auto-body shops that make a living on being able to paint fast, match colors perfectly and be economical in the process.
Because volatile organic compounds (VOC) in paint have been recognized as bad for the environment, there is change afoot that will eventually affect practically everyone who paints. A number of states around the country have enacted regulations that are gradually forcing shops to reduce VOC emissions. These regulations, in a nutshell, mean that American paint shops will need to use waterborne paints in order to comply.

The move to less toxic, water-based finishes is already well under way elsewhere. Waterborne paints are currently in extensive use in Europe and Canada, and many OEMs now use water-based paints on their newest products. Paint manufacturers are also moving quickly to develop low-VOC primers and clear-coat products in addition to the color coats available now.

In high-smog states like California, regulations requiring low-VOC technologies have been in place for years, and now other states are following suit. To find out what these requirements will mean as low-VOC requirements spread across the country, SEMA News contacted a variety of stakeholders in the paint industry. We specifically sought information about the newest technology as it stands today and what it will mean to companies that paint.

The consensus among the people we talked to is that the transition to waterborne finish products may not be as difficult or as costly as some first supposed. In fact, the changeover may bring with it a number of advantages.

Paint Formula Advancements

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
An entirely new paint booth, such as this one on display at the SEMA Show, would not likely be required to make the transition to waterborne paint. However, an ample supply of clean air is an upgrade most production body shops choose to make in order to shorten drying time.
   
One of the biggest areas of activity is at the paint manufacturer level, where the transition to waterborne paint has prompted paint companies to develop new products from scratch. Some are now releasing second- and third-generation water-based paints.

“We’ve been doing waterborne for quite a long time; CroMax Pro is our third-generation waterborne product,” said Harry Christman, brand manager for DuPont Refinish. “This is a product that has a brand-new technology.”

The newest waterborne paint from DuPont is a good example of the kinds of paints the industry will need to come up with to help shops achieve low-VOC requirements. It’s formulated with 88% less solvent but 25% more pigment. The result is a product that offers advantages but also requires re-educating painters.

“Most other waterborne products went in the direction of trying to create a waterborne paint that was like solvent-based paint,” Christman explained. “Solvent is the old technology, and painters tend to dislike change. So many paint companies, when they created their waterborne paint, said ‘we’re going to make them like solvent.’ We went a different direction.

“It’s a higher solids product, so it’s got more of the stuff that gets left behind when the water evaporates off. It’s a one-and-a-half coat, wet-on-wet process. Rather than having to lay down a coat of paint, let it flash, then lay down another one, let it flash—and, depending on what you’re working with, lay down four, five, six coats—with Cromax Pro, you cover in one and a half coats. And anything that doesn’t cover in one and a half coats covers in two coats. So you go in, put on the first coat, go right back and put on your mist coat, your ‘effect’ coat, which is half a coat. Then you’re done. You can put the gun away; leave the booth. It will dry, and then you can clear coat it.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Next-generation waterborne paints such as the DuPont product shown here are now becoming available to the industry. Formulated with much less solvent but more pigment, this third-generation paint is designed to cover completely in one to two coats using a fast, wet-on-wet application process.
   
The newest DuPont paint costs a little more per gallon but offers the advantages of speed and better coverage, making it less costly to use. According to Christman, painters can reap benefits once they understand the process.

“It’s much faster, which high-volume direct repair program shops love, and you use less material,” said Christman. “So it’s great not only for reducing the cost, but because it speeds cars through the shop, it increases the capacity of the body shop. They can sell more jobs and create more revenue.”

Conversion Equipment Requirements

In California, most shops have already converted to waterborne paint. In other states, many paint shops have put off the transition, in part because of cost concerns.

“It’s a myth that you’ve got to buy all kinds of new equipment and put in new spray booths to convert,” Christman noted. “The truth is, they’re going to need a new gun—a stainless-steel gun, because you don’t want rust in your spray gun.”

In addition to a new paint gun, waterborne paint does like to have large volumes of clean air to enhance drying.

“For water, the key to drying is air flow—getting air to move across the surface of the car to make it dry,” Christman said. “However, the car will also dry without great air flow; it just will take longer. So if you’re a production shop that’s trying to move cars through, you’re going to want to put in blowers to get a lot of air movement to get the cars to dry super-fast. But if you’re a custom shop or a smaller shop that doesn’t have cars stacked up outside and you want to put in a small box fan to get a little air movement, that’s all it takes. The difference will be, maybe, instead of drying in 10 minutes, you’ll dry in 30 minutes. For a production shop, that’s a big deal. For a custom shop, probably not to them.”

To add another voice to the conversion, we talked to Douglas Albin of Bodyworks Collision Center in Murietta, California. His shop, which grosses about $250,000 a month, has been using waterborne paint for about five years.

“I converted before it was mandatory,” he said. “I wanted to be ahead of the curve.”

After a period of experimentation, Albin has adjusted his process to make the most of waterborne technology, and he noted some differences.

“With water-based versus solvent, it’s a lot more forgiving,” he said. “Your blending techniques are a little bit easier. It’s not as susceptible to contamination, dirt. We also had to fine-tune our prepping—we had to have a cleaner job, a tighter wrap.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Even though waterborne paint is less toxic and offers easier disposal and cleanup, painters will still want to use a fresh-air system, gloves and a spray suit, because paint is still a chemical.
   
Initially, Albin was using a waterborne paint from his long-time supplier. And he stuck to a process that required multiple coats.

“When water-based paint came and we made the change, I was only getting through two to three cars a day with a $100,000 full-downdraft, 30-foot booth with mixing room,” he explained. “Then I noticed a big difference in the actual manufacturers of the paint. When I first made the transition, I was literally putting on five and six coats and waiting 20 minutes between coats for it to completely flash. Now I paint 12 cars a day, without a $15,000 retrofitted jet dry system. So we mastered it really quick,” said Albin, who now uses DuPont Cromax Pro. “The major expense was training.”

“Painters are going to have to be completely retrained. A lot of them struggled with it. So we really had to go in and retrain them, but once they’re trained, they will never want to go back to the old paint system.”

The Don Ayres Honda Collision Center, located in the area of Fort Wayne, Indiana, is another top-tier production body shop that recently switched to waterborne and does about $2 million a year in total sales. Manager Kevin Cox agreed that painters will need to get used to the new paint technology.

“Painters need to learn a little different technique,” he said. “Both my painters spent two and a half days at a DuPont training center. And then Dupont was in here for one full week after with both of them. But the transitions that the industry went through in the days of lacquer, then to acrylic enamels, then to base coat/clear coat—this transition from solvent to water is a baby step compared to the days of spraying lacquer.”

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Waterborne paint requires a spray gun with stainless-steel parts, which means most shops will want a new gun for each painter. Suitable spray guns are widely available; companies such as Optima, Eastwood and Iwata all had newly designed stainless-steel guns on display at the SEMA Show in 2011. This gun, introduced at the Show by SATA Spray Equipment, is a special-edition SATAjet 4000 B.
   
Cox decided to make the jump to waterborne paint just recently as VOC requirements began to get tighter.

“Everybody’s kind of wigged out over water,” he said. “I was one of those guys—why fix something that’s not broken? But we have some compliance issues with regard to the state of Indiana for VOC compliance and overspray containment. And we thought, well, if we’re going to do this, let’s go ahead and make our transition to water-base paint, so when they walk in the door, they see we’re proactive.

“In all reality, we’re probably four to five years away in this part of the country from any sort of mandate. But I would say embrace it. The time factor and the coverage of the base coat is so much better than solvent, and there is so much waterborne product being applied at the OEM level, it gives you a lot better chance to hit color matches, because you’re putting water against water.”

Cox doesn’t think there is a huge amount of risk in making the conversion to a waterborne paint system.

“I would think any jobber in a given market who is representing any of the Big Three, if they’re transitioning a shop to water, they’re not going to set that shop up for failure,” he said. “And the manufacturers—be it BASF, DuPont, whoever it is—they’re walking on top of each other to get the business. They’re not going to shoot themselves in the foot when it comes to support.

“Cost, for most shops, will depend on what they go with. We went with a blower system with a stainless-steel fan about 12 inches in diameter and about 8 inches deep. We spent maybe $5,500. It’s air driven, so we did have to run some air lines to it, but it wasn’t any big engineering feat.

“You do have to get a new gun; there’s a couple out there to choose from. Actually, through our jobber, it was all part of a kit—they give you the choice of the gun. It changes your cleaning process a little. It’s also going to lower some of your waste issues.”

Albin, with his shop in California, confirmed a reduction in waste-disposal costs.

“We put anything solvent-based in a 55-gallon drum,” he said. “We have thinners to clean that, so we’ve got our thinner cost—about $300 bucks. It’s gone down because of water-based, so we’re only buying one of those a month, versus two.”

When Speed Is Less Important

  Auto Body Repair, Automotive Industry Research, Auto Collision, Auto Body Business
Collision and repair industry manufacturers have already geared up with disposable products suitable for use with waterborne paint, such as masking tape that resists waterborne paint’s tendency to bleed under tape. The tack cloths shown here are marketed as ideal for use with waterborne paint.
   
Brian Ferre, a long-time professional painter and instructor at LA Trade-Tech, worked in a volume body shop when waterborne paint was first introduced and now is involved in training young painters to move into body-shop jobs. In his arena, speed is not so important, but technique and quality are.

“My advice would be not to be scared of it,” Ferre said. “If you’re an open-minded professional painter, the transition will be no problem at all. “

Through his teaching, Ferre has had experience with a lot of different paint formulas.

“I’ve painted with pretty much all the water bases; teaching wise, I try to shoot pretty much everything I can get my hands on,” he said. “All the waterborne products, across the board, the technique for the painter has to be very even. It’s almost like painting custom paint jobs, where you have to be on your game a little bit more to make it even. The DuPont brand, I would say, is pretty goof-proof, even for a student.”

Ferre noted that using waterborne paint offers advantages but also requires using different masking materials.

“In the beginning, when doing multiple colors and taping up, the paint manufacturers had to come up with different tape where it wouldn’t bleed underneath,” he said. “Water has a tendency to bleed a little bit underneath the tape. So they came out with different plastic tapes.”

Water-based paint also offers certain advantages to a custom shop, where speed is not the primary consideration.

“Another advantage,” Ferre said, “is your clear has better adhesion. So you can leave the base coat open longer than you can a solvent-based paint. There’s a certain window that you have to hit to clear coat solvent-based paints, and that window is open longer with water-base. You can leave it open and come back on top of it later, and you won’t have any adhesion problems later on.” According to sources at DuPont, painters can wait up to 72 hours before applying clear.

Ferre also noted that water-based paint is now often used on race cars. Although the paint itself is not lighter, the thinner waterborne paint film adds less weight. “Racers are very conscious about adding weight,” he said. “So racers like it.”

Sun, 04/01/2012 - 08:50

SEMA News—April 2012

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

State Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts  
   
Colorado Newer-Car Exemptions: SEMA is supporting legislation to extend the emissions inspection exemption to vehicles that have not yet reached their sixth model year. Current law exempts only vehicles that are four model years old or newer. Colorado already exempts pre-1976 collector cars, kits and street rods from emissions testing. The logic for this trend is clear: Such vehicles do not contribute in significant ways to air quality problems. This logic applies equally to newer cars.

Hawaii Exhaust Noise: For years, SEMA has beaten back legislation that would have essentially banned aftermarket exhaust systems in Hawaii, including one that would have allowed law enforcement officers to seize and impound a vehicle upon making a subjective determination that the vehicle was in violation. This year, SEMA-model legislation was introduced that would allow vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective noise limit. Car owners would be issued a certificate of compliance if a test of the exhaust system demonstrated that the exhaust system emitted no more than 95 decibels.

Iowa Exhaust Noise: SEMA-model legislation that would allow Iowa’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit was introduced in the Iowa State Senate. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard, benefitting consumers, the aftermarket industry and police officers who are charged with enforcing the law.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Iowa Antique Registration Fee: SEMA is supporting a bill to allow any vehicle that is 25 years old or older and used only for exhibition, entertainment or educational purposes to be registered for an annual fee of $5. Under current law, the automobile may be registered as a “limited-use” vehicle for a two-year fee of $40. Alternatively, it may be registered without restriction with a regular annual vehicle registration fee.

Maryland Historic Vehicles: Identical legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles” has been introduced in the Maryland House and Senate. Under the bill, the age requirement would be raised from 20 to at least 25 years old, and these cars would be prohibited from being used for “occasional transportation.” The measure would also require that an historic vehicle be insured by an historic-vehicle, show-vehicle or antique insurance policy. SEMA is opposing the bill but is working with sponsors to amend the measure to accommodate hobbyists and related businesses.

Maryland Tires: SEMA is opposing legislation that would require the tire industry in the state to affix a label containing the month/year of manufacture and other information on tires. SEMA believes that this legislation would place tire dealers, wholesalers and manufacturers at an unfair disadvantage by requiring additional sidewall information at no value to the motoring public. The date of a tire’s manufacture is already on the sidewall, found as part of the Tire Identification Number. SEMA contends that this legislation may serve to confuse consumers into believing that newer tires answer critical safety concerns. Consumers have greater concerns regarding tire safety, such as proper inflation levels, safe tread depth and overloading of tires/vehicles.

New York Restoration/Custom Shops: A SEMA-supported bill has been introduced in the New York Assembly to exempt restoration and custom shops from the state’s motor vehicle repair shop requirements. This exemption would relieve these shops from the obligation to provide written estimates to customers seeking restoration, rebuild or customization work on specialty motor vehicles or motor vehicles at least 25 years old. The measure would allow restoration and custom shops to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Utah Vintage Travel Trailers: A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was approved by the Utah Senate Transportation Committee and now moves to the floor of the Senate for a vote by all members. The House of Representatives has already approved the bill, under which vintage travel trailers would also be eligible for a special group license plate and would be exempted from wheel cover, mudguard, flap or splash apron requirements. The measure defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Vermont Exhaust Noise: SEMA is opposing legislation to ban motor-vehicle exhaust systems that increase the noise level above the level emitted by the originally installed system. Under the bill, violators would not pass the state’s required inspection. The bill does not provide an opportunity for vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective 95-decibel limit under a fair and predictable test. In addition, the measure does not supply inspectors with an enforcement standard, allowing them to make subjective judgments on whether an exhaust system increases “the noise emitted by the motor vehicle above the level emitted by the exhaust system as originally installed.”

Virginia Restoration Projects: The House of Delegates approved legislation that originally threatened to provide localities with the authority to raise the amount charged from $100 to $500 for an annual license tax for vehicles that do not display current license plates. Working with Virginia hobbyist groups, SEMA negotiated amendments with the bill’s sponsor to 1) totally exempt from the license tax all vehicles 25 years old and older that are undergoing restoration or repair and 2) extend the exemption to all other vehicles (including parts cars) undergoing restoration or repair that are stored on private property for fewer than 60 days. Vehicles stored within a structure would remain exempted from the tax. Under current law, all vehicles—even those 25 years old and older—are subject to the license tax. The bill now moves to the Virginia Senate for consideration.

Washington Restoration/Custom Shops: A SEMA-supported bill to exempt restoration and custom shops from the requirement that they provide written estimates for the repair of any vehicle that qualifies for a “horseless carriage” or “collector vehicle” license plate or is a “parts car,” “street rod” or “custom vehicle” was approved by the Washington State Senate, clearing its way for consideration by the House of Representatives. Under a SEMA-drafted amendment, the bill would allow restoration and custom shops to bill at least every two weeks on a time-and-materials basis. Shops would be able to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

Washington Inoperable Vehicles: SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents legitimate automobile collectors from pursuing their hobby was approved by the Senate Government Operations Committee but not considered by the full Senate before it died in the legislative session. Under the bill, a limited number of junked, wrecked or inoperable vehicles, including parts cars, stored on private property, would have required only screening from public view if required by local law. The bill will be reintroduced next year.

West Virginia Ethanol: The House of Delegates has introduced a concurrent resolution urging the Environmental Protection Agency (EPA) to revoke its decision to allow the sale of gasoline with 15% ethanol (E15) until there is clear and convincing scientific evidence that El5 does not pose a risk to any gasoline-powered vehicle or equipment. SEMA is supporting the resolution.

West Virginia Exhaust Noise: The House Transportation Committee passed SEMA-model legislation that would allow West Virginia’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit. The bill must now be approved by the Judiciary Committee before moving to the House floor for a vote by all members. Current West Virginia law allows only a muffler originally installed by the manufacturer or an equivalent. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard.

West Virginia Property Tax: SEMA is supporting legislation to provide owners of antique motor vehicles with a cap on property taxes paid on antique motor vehicles. The bill was approved by the House Transportation Committee and will now be considered by the Finance Committee. West Virginia law defines an “antique motor vehicle” as any motor vehicle that is more than 25 years old and is owned solely as a collector’s item. The bill would assess antique motor vehicles for property taxes at their salvage value. That value could not exceed $500. At the most costly rate in West Virginia (approximately 3%), the actual property tax paid by antique motor vehicle owners at the maximum salvage value would be only about $15 per year.

Federal Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Ethanol Fuel: The U.S. House Science Committee approved a SEMA-supported bill that directs the National Academy of Sciences to conduct a study on how gasoline blended with 15% to 20% ethanol (E15 and E20) may impact gas-powered vehicles. The analysis would consider a variety of issues, including tailpipe emissions, materials compatibility and fuel efficiency. The House bill would prevent the EPA from introducing E15 into the marketplace until the report has been submitted to the House Science Committee. The bill will now be considered by the full House of Representatives. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. However, SEMA contends that a gas-pump warning label will not protect consumers from accidentally misfueling these vehicles. E15 has not yet been marketed. It is still the subject of several lawsuits and legislation to block its sale.

Bonus Depreciation: SEMA joined with the National Association of Manufacturers and a number of other organizations in urging the U.S. Congress to extend the 100% bonus depreciation through 2012. The depreciation had been at 100% since 2010 but dropped to 50% on January 1, 2012. Lawmakers are considering whether to include the extension within a larger bill to extend the payroll tax cuts for the rest of the year. The depreciation provision would allow businesses to write off 100% of the cost of new equipment in the first year rather than depreciating the cost over multiple years. SEMA contends that the bonus depreciation encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs.

Merging Federal Agencies: President Obama wants Congress to grant him authority to reorganize the federal government, as was permitted for more than 50 years from the Hoover through Reagan administrations. Congress would have an up-or-down vote on each proposed change. The intent is to consolidate functions and reduce duplication in the federal workforce. To start, the White House has proposed merging the Commerce Department and five agencies tied to the business community: the Small Business Administration (SBA), the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corp. and the Trade and Development Agency. The new department would oversee trade, investment, business/economic development, technology and economic statistics and be led by a cabinet-level secretary. While Congress considers the issue, President Obama intends to elevate the current SBA Administrator position to a cabinet-level post, at least until the new department is organized.

Tire Fuel Efficiency: The National Highway Traffic Safety Administration (NHTSA) held a public workshop in February to gather additional information on how to implement a tire fuel efficiency consumer information program. The program is required under a 2007 law. In 2010, NHTSA established the test procedures to be used by tire manufacturers when rating the fuel economy, safety and durability characteristics of replacement tires. However, the agency is still debating how to convey the information to consumers at the point of sale and online. NHTSA is also interested in reviewing the experiences other countries have had in pursuing similar programs. The premise for the program is to allow consumers to compare ratings for different replacement tires and determine the effect of tire choices on fuel economy or the potential tradeoffs between tire fuel efficiency (rolling resistance), safety (wet traction) and durability (tread-wear life). The 2007 law included a SEMA provision exempting tires that have been produced or imported in annual units of less than 15,000 and do not exceed 35,000 tires in total brand-name production.

Design Patents: A bill has been introduced in the U.S. House of Representatives that would allow companies to market collision repair parts without infringing a design patent after a vehicle has been marketed for two and a half years. Under current law, a design patent covers the ornamental design for an object having practical utility for a 14-year term. At issue is the recent practice of many automakers to obtain design patents for individual vehicle parts associated with collision repairs, such as fenders, lamps, hoods, bumpers and grilles. Historically, the companies have received design patents for the car’s overall design rather than individual parts. The design patent allows a company exclusive rights to exclude others from copying the product or to license the rights. SEMA is reviewing the legislation. A House committee held a hearing two years ago on a previous version of the bill that would have provided a total exclusion for replacement parts. The auto companies noted that they had invested enormous amounts of money in developing the part designs only to have them copied in a matter of hours and were seeking to protect that investment through rights available under current law. Opponents countered that auto companies were seeking to eliminate competition and that the design patents raise prices for consumers in repair costs and insurance premiums. The current bill seeks to craft a compromise approach.

Counterfeit Products: U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement seized nearly 25,000 counterfeit and pirated goods in fiscal year 2011, a 24% increase from the previous year. The value of the seizures actually decreased by 5%, totaling $179 million for FY 2011. The high-volume/lower-value differential was attributed to an increase in express courier and consolidated shipments and the growth of websites selling counterfeit goods directly to consumers. The top 10 categories of counterfeit products seized were consumer electronics, footwear, pharmaceuticals, optical media, apparel, perfume/cologne, watches, cigarettes, toys/electronic games, auto parts and all other commodities. China continues to be the primary-source country for counterfeit and pirated goods seized, accounting for 62% or $125 million of the total domestic value of seizures.

Sun, 04/01/2012 - 08:50

SEMA News—April 2012

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

State Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts  
   
Colorado Newer-Car Exemptions: SEMA is supporting legislation to extend the emissions inspection exemption to vehicles that have not yet reached their sixth model year. Current law exempts only vehicles that are four model years old or newer. Colorado already exempts pre-1976 collector cars, kits and street rods from emissions testing. The logic for this trend is clear: Such vehicles do not contribute in significant ways to air quality problems. This logic applies equally to newer cars.

Hawaii Exhaust Noise: For years, SEMA has beaten back legislation that would have essentially banned aftermarket exhaust systems in Hawaii, including one that would have allowed law enforcement officers to seize and impound a vehicle upon making a subjective determination that the vehicle was in violation. This year, SEMA-model legislation was introduced that would allow vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective noise limit. Car owners would be issued a certificate of compliance if a test of the exhaust system demonstrated that the exhaust system emitted no more than 95 decibels.

Iowa Exhaust Noise: SEMA-model legislation that would allow Iowa’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit was introduced in the Iowa State Senate. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard, benefitting consumers, the aftermarket industry and police officers who are charged with enforcing the law.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Iowa Antique Registration Fee: SEMA is supporting a bill to allow any vehicle that is 25 years old or older and used only for exhibition, entertainment or educational purposes to be registered for an annual fee of $5. Under current law, the automobile may be registered as a “limited-use” vehicle for a two-year fee of $40. Alternatively, it may be registered without restriction with a regular annual vehicle registration fee.

Maryland Historic Vehicles: Identical legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles” has been introduced in the Maryland House and Senate. Under the bill, the age requirement would be raised from 20 to at least 25 years old, and these cars would be prohibited from being used for “occasional transportation.” The measure would also require that an historic vehicle be insured by an historic-vehicle, show-vehicle or antique insurance policy. SEMA is opposing the bill but is working with sponsors to amend the measure to accommodate hobbyists and related businesses.

Maryland Tires: SEMA is opposing legislation that would require the tire industry in the state to affix a label containing the month/year of manufacture and other information on tires. SEMA believes that this legislation would place tire dealers, wholesalers and manufacturers at an unfair disadvantage by requiring additional sidewall information at no value to the motoring public. The date of a tire’s manufacture is already on the sidewall, found as part of the Tire Identification Number. SEMA contends that this legislation may serve to confuse consumers into believing that newer tires answer critical safety concerns. Consumers have greater concerns regarding tire safety, such as proper inflation levels, safe tread depth and overloading of tires/vehicles.

New York Restoration/Custom Shops: A SEMA-supported bill has been introduced in the New York Assembly to exempt restoration and custom shops from the state’s motor vehicle repair shop requirements. This exemption would relieve these shops from the obligation to provide written estimates to customers seeking restoration, rebuild or customization work on specialty motor vehicles or motor vehicles at least 25 years old. The measure would allow restoration and custom shops to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Utah Vintage Travel Trailers: A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was approved by the Utah Senate Transportation Committee and now moves to the floor of the Senate for a vote by all members. The House of Representatives has already approved the bill, under which vintage travel trailers would also be eligible for a special group license plate and would be exempted from wheel cover, mudguard, flap or splash apron requirements. The measure defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Vermont Exhaust Noise: SEMA is opposing legislation to ban motor-vehicle exhaust systems that increase the noise level above the level emitted by the originally installed system. Under the bill, violators would not pass the state’s required inspection. The bill does not provide an opportunity for vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective 95-decibel limit under a fair and predictable test. In addition, the measure does not supply inspectors with an enforcement standard, allowing them to make subjective judgments on whether an exhaust system increases “the noise emitted by the motor vehicle above the level emitted by the exhaust system as originally installed.”

Virginia Restoration Projects: The House of Delegates approved legislation that originally threatened to provide localities with the authority to raise the amount charged from $100 to $500 for an annual license tax for vehicles that do not display current license plates. Working with Virginia hobbyist groups, SEMA negotiated amendments with the bill’s sponsor to 1) totally exempt from the license tax all vehicles 25 years old and older that are undergoing restoration or repair and 2) extend the exemption to all other vehicles (including parts cars) undergoing restoration or repair that are stored on private property for fewer than 60 days. Vehicles stored within a structure would remain exempted from the tax. Under current law, all vehicles—even those 25 years old and older—are subject to the license tax. The bill now moves to the Virginia Senate for consideration.

Washington Restoration/Custom Shops: A SEMA-supported bill to exempt restoration and custom shops from the requirement that they provide written estimates for the repair of any vehicle that qualifies for a “horseless carriage” or “collector vehicle” license plate or is a “parts car,” “street rod” or “custom vehicle” was approved by the Washington State Senate, clearing its way for consideration by the House of Representatives. Under a SEMA-drafted amendment, the bill would allow restoration and custom shops to bill at least every two weeks on a time-and-materials basis. Shops would be able to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

Washington Inoperable Vehicles: SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents legitimate automobile collectors from pursuing their hobby was approved by the Senate Government Operations Committee but not considered by the full Senate before it died in the legislative session. Under the bill, a limited number of junked, wrecked or inoperable vehicles, including parts cars, stored on private property, would have required only screening from public view if required by local law. The bill will be reintroduced next year.

West Virginia Ethanol: The House of Delegates has introduced a concurrent resolution urging the Environmental Protection Agency (EPA) to revoke its decision to allow the sale of gasoline with 15% ethanol (E15) until there is clear and convincing scientific evidence that El5 does not pose a risk to any gasoline-powered vehicle or equipment. SEMA is supporting the resolution.

West Virginia Exhaust Noise: The House Transportation Committee passed SEMA-model legislation that would allow West Virginia’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit. The bill must now be approved by the Judiciary Committee before moving to the House floor for a vote by all members. Current West Virginia law allows only a muffler originally installed by the manufacturer or an equivalent. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard.

West Virginia Property Tax: SEMA is supporting legislation to provide owners of antique motor vehicles with a cap on property taxes paid on antique motor vehicles. The bill was approved by the House Transportation Committee and will now be considered by the Finance Committee. West Virginia law defines an “antique motor vehicle” as any motor vehicle that is more than 25 years old and is owned solely as a collector’s item. The bill would assess antique motor vehicles for property taxes at their salvage value. That value could not exceed $500. At the most costly rate in West Virginia (approximately 3%), the actual property tax paid by antique motor vehicle owners at the maximum salvage value would be only about $15 per year.

Federal Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Ethanol Fuel: The U.S. House Science Committee approved a SEMA-supported bill that directs the National Academy of Sciences to conduct a study on how gasoline blended with 15% to 20% ethanol (E15 and E20) may impact gas-powered vehicles. The analysis would consider a variety of issues, including tailpipe emissions, materials compatibility and fuel efficiency. The House bill would prevent the EPA from introducing E15 into the marketplace until the report has been submitted to the House Science Committee. The bill will now be considered by the full House of Representatives. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. However, SEMA contends that a gas-pump warning label will not protect consumers from accidentally misfueling these vehicles. E15 has not yet been marketed. It is still the subject of several lawsuits and legislation to block its sale.

Bonus Depreciation: SEMA joined with the National Association of Manufacturers and a number of other organizations in urging the U.S. Congress to extend the 100% bonus depreciation through 2012. The depreciation had been at 100% since 2010 but dropped to 50% on January 1, 2012. Lawmakers are considering whether to include the extension within a larger bill to extend the payroll tax cuts for the rest of the year. The depreciation provision would allow businesses to write off 100% of the cost of new equipment in the first year rather than depreciating the cost over multiple years. SEMA contends that the bonus depreciation encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs.

Merging Federal Agencies: President Obama wants Congress to grant him authority to reorganize the federal government, as was permitted for more than 50 years from the Hoover through Reagan administrations. Congress would have an up-or-down vote on each proposed change. The intent is to consolidate functions and reduce duplication in the federal workforce. To start, the White House has proposed merging the Commerce Department and five agencies tied to the business community: the Small Business Administration (SBA), the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corp. and the Trade and Development Agency. The new department would oversee trade, investment, business/economic development, technology and economic statistics and be led by a cabinet-level secretary. While Congress considers the issue, President Obama intends to elevate the current SBA Administrator position to a cabinet-level post, at least until the new department is organized.

Tire Fuel Efficiency: The National Highway Traffic Safety Administration (NHTSA) held a public workshop in February to gather additional information on how to implement a tire fuel efficiency consumer information program. The program is required under a 2007 law. In 2010, NHTSA established the test procedures to be used by tire manufacturers when rating the fuel economy, safety and durability characteristics of replacement tires. However, the agency is still debating how to convey the information to consumers at the point of sale and online. NHTSA is also interested in reviewing the experiences other countries have had in pursuing similar programs. The premise for the program is to allow consumers to compare ratings for different replacement tires and determine the effect of tire choices on fuel economy or the potential tradeoffs between tire fuel efficiency (rolling resistance), safety (wet traction) and durability (tread-wear life). The 2007 law included a SEMA provision exempting tires that have been produced or imported in annual units of less than 15,000 and do not exceed 35,000 tires in total brand-name production.

Design Patents: A bill has been introduced in the U.S. House of Representatives that would allow companies to market collision repair parts without infringing a design patent after a vehicle has been marketed for two and a half years. Under current law, a design patent covers the ornamental design for an object having practical utility for a 14-year term. At issue is the recent practice of many automakers to obtain design patents for individual vehicle parts associated with collision repairs, such as fenders, lamps, hoods, bumpers and grilles. Historically, the companies have received design patents for the car’s overall design rather than individual parts. The design patent allows a company exclusive rights to exclude others from copying the product or to license the rights. SEMA is reviewing the legislation. A House committee held a hearing two years ago on a previous version of the bill that would have provided a total exclusion for replacement parts. The auto companies noted that they had invested enormous amounts of money in developing the part designs only to have them copied in a matter of hours and were seeking to protect that investment through rights available under current law. Opponents countered that auto companies were seeking to eliminate competition and that the design patents raise prices for consumers in repair costs and insurance premiums. The current bill seeks to craft a compromise approach.

Counterfeit Products: U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement seized nearly 25,000 counterfeit and pirated goods in fiscal year 2011, a 24% increase from the previous year. The value of the seizures actually decreased by 5%, totaling $179 million for FY 2011. The high-volume/lower-value differential was attributed to an increase in express courier and consolidated shipments and the growth of websites selling counterfeit goods directly to consumers. The top 10 categories of counterfeit products seized were consumer electronics, footwear, pharmaceuticals, optical media, apparel, perfume/cologne, watches, cigarettes, toys/electronic games, auto parts and all other commodities. China continues to be the primary-source country for counterfeit and pirated goods seized, accounting for 62% or $125 million of the total domestic value of seizures.

Sun, 04/01/2012 - 08:50

SEMA News—April 2012

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

State Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts  
   
Colorado Newer-Car Exemptions: SEMA is supporting legislation to extend the emissions inspection exemption to vehicles that have not yet reached their sixth model year. Current law exempts only vehicles that are four model years old or newer. Colorado already exempts pre-1976 collector cars, kits and street rods from emissions testing. The logic for this trend is clear: Such vehicles do not contribute in significant ways to air quality problems. This logic applies equally to newer cars.

Hawaii Exhaust Noise: For years, SEMA has beaten back legislation that would have essentially banned aftermarket exhaust systems in Hawaii, including one that would have allowed law enforcement officers to seize and impound a vehicle upon making a subjective determination that the vehicle was in violation. This year, SEMA-model legislation was introduced that would allow vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective noise limit. Car owners would be issued a certificate of compliance if a test of the exhaust system demonstrated that the exhaust system emitted no more than 95 decibels.

Iowa Exhaust Noise: SEMA-model legislation that would allow Iowa’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit was introduced in the Iowa State Senate. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard, benefitting consumers, the aftermarket industry and police officers who are charged with enforcing the law.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Iowa Antique Registration Fee: SEMA is supporting a bill to allow any vehicle that is 25 years old or older and used only for exhibition, entertainment or educational purposes to be registered for an annual fee of $5. Under current law, the automobile may be registered as a “limited-use” vehicle for a two-year fee of $40. Alternatively, it may be registered without restriction with a regular annual vehicle registration fee.

Maryland Historic Vehicles: Identical legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles” has been introduced in the Maryland House and Senate. Under the bill, the age requirement would be raised from 20 to at least 25 years old, and these cars would be prohibited from being used for “occasional transportation.” The measure would also require that an historic vehicle be insured by an historic-vehicle, show-vehicle or antique insurance policy. SEMA is opposing the bill but is working with sponsors to amend the measure to accommodate hobbyists and related businesses.

Maryland Tires: SEMA is opposing legislation that would require the tire industry in the state to affix a label containing the month/year of manufacture and other information on tires. SEMA believes that this legislation would place tire dealers, wholesalers and manufacturers at an unfair disadvantage by requiring additional sidewall information at no value to the motoring public. The date of a tire’s manufacture is already on the sidewall, found as part of the Tire Identification Number. SEMA contends that this legislation may serve to confuse consumers into believing that newer tires answer critical safety concerns. Consumers have greater concerns regarding tire safety, such as proper inflation levels, safe tread depth and overloading of tires/vehicles.

New York Restoration/Custom Shops: A SEMA-supported bill has been introduced in the New York Assembly to exempt restoration and custom shops from the state’s motor vehicle repair shop requirements. This exemption would relieve these shops from the obligation to provide written estimates to customers seeking restoration, rebuild or customization work on specialty motor vehicles or motor vehicles at least 25 years old. The measure would allow restoration and custom shops to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Utah Vintage Travel Trailers: A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was approved by the Utah Senate Transportation Committee and now moves to the floor of the Senate for a vote by all members. The House of Representatives has already approved the bill, under which vintage travel trailers would also be eligible for a special group license plate and would be exempted from wheel cover, mudguard, flap or splash apron requirements. The measure defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Vermont Exhaust Noise: SEMA is opposing legislation to ban motor-vehicle exhaust systems that increase the noise level above the level emitted by the originally installed system. Under the bill, violators would not pass the state’s required inspection. The bill does not provide an opportunity for vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective 95-decibel limit under a fair and predictable test. In addition, the measure does not supply inspectors with an enforcement standard, allowing them to make subjective judgments on whether an exhaust system increases “the noise emitted by the motor vehicle above the level emitted by the exhaust system as originally installed.”

Virginia Restoration Projects: The House of Delegates approved legislation that originally threatened to provide localities with the authority to raise the amount charged from $100 to $500 for an annual license tax for vehicles that do not display current license plates. Working with Virginia hobbyist groups, SEMA negotiated amendments with the bill’s sponsor to 1) totally exempt from the license tax all vehicles 25 years old and older that are undergoing restoration or repair and 2) extend the exemption to all other vehicles (including parts cars) undergoing restoration or repair that are stored on private property for fewer than 60 days. Vehicles stored within a structure would remain exempted from the tax. Under current law, all vehicles—even those 25 years old and older—are subject to the license tax. The bill now moves to the Virginia Senate for consideration.

Washington Restoration/Custom Shops: A SEMA-supported bill to exempt restoration and custom shops from the requirement that they provide written estimates for the repair of any vehicle that qualifies for a “horseless carriage” or “collector vehicle” license plate or is a “parts car,” “street rod” or “custom vehicle” was approved by the Washington State Senate, clearing its way for consideration by the House of Representatives. Under a SEMA-drafted amendment, the bill would allow restoration and custom shops to bill at least every two weeks on a time-and-materials basis. Shops would be able to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

Washington Inoperable Vehicles: SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents legitimate automobile collectors from pursuing their hobby was approved by the Senate Government Operations Committee but not considered by the full Senate before it died in the legislative session. Under the bill, a limited number of junked, wrecked or inoperable vehicles, including parts cars, stored on private property, would have required only screening from public view if required by local law. The bill will be reintroduced next year.

West Virginia Ethanol: The House of Delegates has introduced a concurrent resolution urging the Environmental Protection Agency (EPA) to revoke its decision to allow the sale of gasoline with 15% ethanol (E15) until there is clear and convincing scientific evidence that El5 does not pose a risk to any gasoline-powered vehicle or equipment. SEMA is supporting the resolution.

West Virginia Exhaust Noise: The House Transportation Committee passed SEMA-model legislation that would allow West Virginia’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit. The bill must now be approved by the Judiciary Committee before moving to the House floor for a vote by all members. Current West Virginia law allows only a muffler originally installed by the manufacturer or an equivalent. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard.

West Virginia Property Tax: SEMA is supporting legislation to provide owners of antique motor vehicles with a cap on property taxes paid on antique motor vehicles. The bill was approved by the House Transportation Committee and will now be considered by the Finance Committee. West Virginia law defines an “antique motor vehicle” as any motor vehicle that is more than 25 years old and is owned solely as a collector’s item. The bill would assess antique motor vehicles for property taxes at their salvage value. That value could not exceed $500. At the most costly rate in West Virginia (approximately 3%), the actual property tax paid by antique motor vehicle owners at the maximum salvage value would be only about $15 per year.

Federal Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Ethanol Fuel: The U.S. House Science Committee approved a SEMA-supported bill that directs the National Academy of Sciences to conduct a study on how gasoline blended with 15% to 20% ethanol (E15 and E20) may impact gas-powered vehicles. The analysis would consider a variety of issues, including tailpipe emissions, materials compatibility and fuel efficiency. The House bill would prevent the EPA from introducing E15 into the marketplace until the report has been submitted to the House Science Committee. The bill will now be considered by the full House of Representatives. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. However, SEMA contends that a gas-pump warning label will not protect consumers from accidentally misfueling these vehicles. E15 has not yet been marketed. It is still the subject of several lawsuits and legislation to block its sale.

Bonus Depreciation: SEMA joined with the National Association of Manufacturers and a number of other organizations in urging the U.S. Congress to extend the 100% bonus depreciation through 2012. The depreciation had been at 100% since 2010 but dropped to 50% on January 1, 2012. Lawmakers are considering whether to include the extension within a larger bill to extend the payroll tax cuts for the rest of the year. The depreciation provision would allow businesses to write off 100% of the cost of new equipment in the first year rather than depreciating the cost over multiple years. SEMA contends that the bonus depreciation encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs.

Merging Federal Agencies: President Obama wants Congress to grant him authority to reorganize the federal government, as was permitted for more than 50 years from the Hoover through Reagan administrations. Congress would have an up-or-down vote on each proposed change. The intent is to consolidate functions and reduce duplication in the federal workforce. To start, the White House has proposed merging the Commerce Department and five agencies tied to the business community: the Small Business Administration (SBA), the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corp. and the Trade and Development Agency. The new department would oversee trade, investment, business/economic development, technology and economic statistics and be led by a cabinet-level secretary. While Congress considers the issue, President Obama intends to elevate the current SBA Administrator position to a cabinet-level post, at least until the new department is organized.

Tire Fuel Efficiency: The National Highway Traffic Safety Administration (NHTSA) held a public workshop in February to gather additional information on how to implement a tire fuel efficiency consumer information program. The program is required under a 2007 law. In 2010, NHTSA established the test procedures to be used by tire manufacturers when rating the fuel economy, safety and durability characteristics of replacement tires. However, the agency is still debating how to convey the information to consumers at the point of sale and online. NHTSA is also interested in reviewing the experiences other countries have had in pursuing similar programs. The premise for the program is to allow consumers to compare ratings for different replacement tires and determine the effect of tire choices on fuel economy or the potential tradeoffs between tire fuel efficiency (rolling resistance), safety (wet traction) and durability (tread-wear life). The 2007 law included a SEMA provision exempting tires that have been produced or imported in annual units of less than 15,000 and do not exceed 35,000 tires in total brand-name production.

Design Patents: A bill has been introduced in the U.S. House of Representatives that would allow companies to market collision repair parts without infringing a design patent after a vehicle has been marketed for two and a half years. Under current law, a design patent covers the ornamental design for an object having practical utility for a 14-year term. At issue is the recent practice of many automakers to obtain design patents for individual vehicle parts associated with collision repairs, such as fenders, lamps, hoods, bumpers and grilles. Historically, the companies have received design patents for the car’s overall design rather than individual parts. The design patent allows a company exclusive rights to exclude others from copying the product or to license the rights. SEMA is reviewing the legislation. A House committee held a hearing two years ago on a previous version of the bill that would have provided a total exclusion for replacement parts. The auto companies noted that they had invested enormous amounts of money in developing the part designs only to have them copied in a matter of hours and were seeking to protect that investment through rights available under current law. Opponents countered that auto companies were seeking to eliminate competition and that the design patents raise prices for consumers in repair costs and insurance premiums. The current bill seeks to craft a compromise approach.

Counterfeit Products: U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement seized nearly 25,000 counterfeit and pirated goods in fiscal year 2011, a 24% increase from the previous year. The value of the seizures actually decreased by 5%, totaling $179 million for FY 2011. The high-volume/lower-value differential was attributed to an increase in express courier and consolidated shipments and the growth of websites selling counterfeit goods directly to consumers. The top 10 categories of counterfeit products seized were consumer electronics, footwear, pharmaceuticals, optical media, apparel, perfume/cologne, watches, cigarettes, toys/electronic games, auto parts and all other commodities. China continues to be the primary-source country for counterfeit and pirated goods seized, accounting for 62% or $125 million of the total domestic value of seizures.

Sun, 04/01/2012 - 08:50

SEMA News—April 2012

LEGISLATIVE AND TECHNICAL AFFAIRS
By Steve McDonald

Law and Order

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

State Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts  
   
Colorado Newer-Car Exemptions: SEMA is supporting legislation to extend the emissions inspection exemption to vehicles that have not yet reached their sixth model year. Current law exempts only vehicles that are four model years old or newer. Colorado already exempts pre-1976 collector cars, kits and street rods from emissions testing. The logic for this trend is clear: Such vehicles do not contribute in significant ways to air quality problems. This logic applies equally to newer cars.

Hawaii Exhaust Noise: For years, SEMA has beaten back legislation that would have essentially banned aftermarket exhaust systems in Hawaii, including one that would have allowed law enforcement officers to seize and impound a vehicle upon making a subjective determination that the vehicle was in violation. This year, SEMA-model legislation was introduced that would allow vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective noise limit. Car owners would be issued a certificate of compliance if a test of the exhaust system demonstrated that the exhaust system emitted no more than 95 decibels.

Iowa Exhaust Noise: SEMA-model legislation that would allow Iowa’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit was introduced in the Iowa State Senate. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard, benefitting consumers, the aftermarket industry and police officers who are charged with enforcing the law.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Iowa Antique Registration Fee: SEMA is supporting a bill to allow any vehicle that is 25 years old or older and used only for exhibition, entertainment or educational purposes to be registered for an annual fee of $5. Under current law, the automobile may be registered as a “limited-use” vehicle for a two-year fee of $40. Alternatively, it may be registered without restriction with a regular annual vehicle registration fee.

Maryland Historic Vehicles: Identical legislation to increase the age requirement for vehicles eligible for registration as “historic motor vehicles” has been introduced in the Maryland House and Senate. Under the bill, the age requirement would be raised from 20 to at least 25 years old, and these cars would be prohibited from being used for “occasional transportation.” The measure would also require that an historic vehicle be insured by an historic-vehicle, show-vehicle or antique insurance policy. SEMA is opposing the bill but is working with sponsors to amend the measure to accommodate hobbyists and related businesses.

Maryland Tires: SEMA is opposing legislation that would require the tire industry in the state to affix a label containing the month/year of manufacture and other information on tires. SEMA believes that this legislation would place tire dealers, wholesalers and manufacturers at an unfair disadvantage by requiring additional sidewall information at no value to the motoring public. The date of a tire’s manufacture is already on the sidewall, found as part of the Tire Identification Number. SEMA contends that this legislation may serve to confuse consumers into believing that newer tires answer critical safety concerns. Consumers have greater concerns regarding tire safety, such as proper inflation levels, safe tread depth and overloading of tires/vehicles.

New York Restoration/Custom Shops: A SEMA-supported bill has been introduced in the New York Assembly to exempt restoration and custom shops from the state’s motor vehicle repair shop requirements. This exemption would relieve these shops from the obligation to provide written estimates to customers seeking restoration, rebuild or customization work on specialty motor vehicles or motor vehicles at least 25 years old. The measure would allow restoration and custom shops to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Utah Vintage Travel Trailers: A SEMA-supported bill to create a statutory definition of a “vintage travel trailer” and provide for a one-time $40 registration fee was approved by the Utah Senate Transportation Committee and now moves to the floor of the Senate for a vote by all members. The House of Representatives has already approved the bill, under which vintage travel trailers would also be eligible for a special group license plate and would be exempted from wheel cover, mudguard, flap or splash apron requirements. The measure defines a “vintage travel trailer” as a travel trailer, camping trailer or fifth-wheel trailer that is 30 years old or older and primarily a collector’s item that is used for participation in club activities, exhibitions, tours, parades, occasional recreational or vacation use and other similar uses.

Vermont Exhaust Noise: SEMA is opposing legislation to ban motor-vehicle exhaust systems that increase the noise level above the level emitted by the originally installed system. Under the bill, violators would not pass the state’s required inspection. The bill does not provide an opportunity for vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet an objective 95-decibel limit under a fair and predictable test. In addition, the measure does not supply inspectors with an enforcement standard, allowing them to make subjective judgments on whether an exhaust system increases “the noise emitted by the motor vehicle above the level emitted by the exhaust system as originally installed.”

Virginia Restoration Projects: The House of Delegates approved legislation that originally threatened to provide localities with the authority to raise the amount charged from $100 to $500 for an annual license tax for vehicles that do not display current license plates. Working with Virginia hobbyist groups, SEMA negotiated amendments with the bill’s sponsor to 1) totally exempt from the license tax all vehicles 25 years old and older that are undergoing restoration or repair and 2) extend the exemption to all other vehicles (including parts cars) undergoing restoration or repair that are stored on private property for fewer than 60 days. Vehicles stored within a structure would remain exempted from the tax. Under current law, all vehicles—even those 25 years old and older—are subject to the license tax. The bill now moves to the Virginia Senate for consideration.

Washington Restoration/Custom Shops: A SEMA-supported bill to exempt restoration and custom shops from the requirement that they provide written estimates for the repair of any vehicle that qualifies for a “horseless carriage” or “collector vehicle” license plate or is a “parts car,” “street rod” or “custom vehicle” was approved by the Washington State Senate, clearing its way for consideration by the House of Representatives. Under a SEMA-drafted amendment, the bill would allow restoration and custom shops to bill at least every two weeks on a time-and-materials basis. Shops would be able to accurately inform customers of actual costs and materials, removing vagueness associated with shops attempting to “guess” probable time for unique tasks and probable costs for unique and in some cases yet-to-be-fabricated parts.

Washington Inoperable Vehicles: SEMA-model legislation to prohibit cities or towns from enforcing an ordinance, development regulation, zoning regulation or administrative practice that prevents legitimate automobile collectors from pursuing their hobby was approved by the Senate Government Operations Committee but not considered by the full Senate before it died in the legislative session. Under the bill, a limited number of junked, wrecked or inoperable vehicles, including parts cars, stored on private property, would have required only screening from public view if required by local law. The bill will be reintroduced next year.

West Virginia Ethanol: The House of Delegates has introduced a concurrent resolution urging the Environmental Protection Agency (EPA) to revoke its decision to allow the sale of gasoline with 15% ethanol (E15) until there is clear and convincing scientific evidence that El5 does not pose a risk to any gasoline-powered vehicle or equipment. SEMA is supporting the resolution.

West Virginia Exhaust Noise: The House Transportation Committee passed SEMA-model legislation that would allow West Virginia’s vehicle hobbyists to install and use aftermarket-modified exhaust systems that meet a 95-decibel limit. The bill must now be approved by the Judiciary Committee before moving to the House floor for a vote by all members. Current West Virginia law allows only a muffler originally installed by the manufacturer or an equivalent. The bill would remove subjective provisions in the law and force compliance with an objectively measured standard.

West Virginia Property Tax: SEMA is supporting legislation to provide owners of antique motor vehicles with a cap on property taxes paid on antique motor vehicles. The bill was approved by the House Transportation Committee and will now be considered by the Finance Committee. West Virginia law defines an “antique motor vehicle” as any motor vehicle that is more than 25 years old and is owned solely as a collector’s item. The bill would assess antique motor vehicles for property taxes at their salvage value. That value could not exceed $500. At the most costly rate in West Virginia (approximately 3%), the actual property tax paid by antique motor vehicle owners at the maximum salvage value would be only about $15 per year.

Federal Update

  Aftermarket Parts Regulation, Aftermarket Parts Laws, Auto Legislation, Automotive Legislation, Federal Regulation Aftermarket Parts
   
Ethanol Fuel: The U.S. House Science Committee approved a SEMA-supported bill that directs the National Academy of Sciences to conduct a study on how gasoline blended with 15% to 20% ethanol (E15 and E20) may impact gas-powered vehicles. The analysis would consider a variety of issues, including tailpipe emissions, materials compatibility and fuel efficiency. The House bill would prevent the EPA from introducing E15 into the marketplace until the report has been submitted to the House Science Committee. The bill will now be considered by the full House of Representatives. Ethanol increases water formation in the gas tank, which can then produce formic acid and corrode certain metal, plastic and rubber parts. Last year, the EPA approved the sale of E15 for model-year 2001 and later vehicles. The EPA agreed with SEMA’s concerns that ethanol poses a threat to older vehicles and made it “illegal” to fuel pre-2001 vehicles with E15. However, SEMA contends that a gas-pump warning label will not protect consumers from accidentally misfueling these vehicles. E15 has not yet been marketed. It is still the subject of several lawsuits and legislation to block its sale.

Bonus Depreciation: SEMA joined with the National Association of Manufacturers and a number of other organizations in urging the U.S. Congress to extend the 100% bonus depreciation through 2012. The depreciation had been at 100% since 2010 but dropped to 50% on January 1, 2012. Lawmakers are considering whether to include the extension within a larger bill to extend the payroll tax cuts for the rest of the year. The depreciation provision would allow businesses to write off 100% of the cost of new equipment in the first year rather than depreciating the cost over multiple years. SEMA contends that the bonus depreciation encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs.

Merging Federal Agencies: President Obama wants Congress to grant him authority to reorganize the federal government, as was permitted for more than 50 years from the Hoover through Reagan administrations. Congress would have an up-or-down vote on each proposed change. The intent is to consolidate functions and reduce duplication in the federal workforce. To start, the White House has proposed merging the Commerce Department and five agencies tied to the business community: the Small Business Administration (SBA), the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corp. and the Trade and Development Agency. The new department would oversee trade, investment, business/economic development, technology and economic statistics and be led by a cabinet-level secretary. While Congress considers the issue, President Obama intends to elevate the current SBA Administrator position to a cabinet-level post, at least until the new department is organized.

Tire Fuel Efficiency: The National Highway Traffic Safety Administration (NHTSA) held a public workshop in February to gather additional information on how to implement a tire fuel efficiency consumer information program. The program is required under a 2007 law. In 2010, NHTSA established the test procedures to be used by tire manufacturers when rating the fuel economy, safety and durability characteristics of replacement tires. However, the agency is still debating how to convey the information to consumers at the point of sale and online. NHTSA is also interested in reviewing the experiences other countries have had in pursuing similar programs. The premise for the program is to allow consumers to compare ratings for different replacement tires and determine the effect of tire choices on fuel economy or the potential tradeoffs between tire fuel efficiency (rolling resistance), safety (wet traction) and durability (tread-wear life). The 2007 law included a SEMA provision exempting tires that have been produced or imported in annual units of less than 15,000 and do not exceed 35,000 tires in total brand-name production.

Design Patents: A bill has been introduced in the U.S. House of Representatives that would allow companies to market collision repair parts without infringing a design patent after a vehicle has been marketed for two and a half years. Under current law, a design patent covers the ornamental design for an object having practical utility for a 14-year term. At issue is the recent practice of many automakers to obtain design patents for individual vehicle parts associated with collision repairs, such as fenders, lamps, hoods, bumpers and grilles. Historically, the companies have received design patents for the car’s overall design rather than individual parts. The design patent allows a company exclusive rights to exclude others from copying the product or to license the rights. SEMA is reviewing the legislation. A House committee held a hearing two years ago on a previous version of the bill that would have provided a total exclusion for replacement parts. The auto companies noted that they had invested enormous amounts of money in developing the part designs only to have them copied in a matter of hours and were seeking to protect that investment through rights available under current law. Opponents countered that auto companies were seeking to eliminate competition and that the design patents raise prices for consumers in repair costs and insurance premiums. The current bill seeks to craft a compromise approach.

Counterfeit Products: U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement seized nearly 25,000 counterfeit and pirated goods in fiscal year 2011, a 24% increase from the previous year. The value of the seizures actually decreased by 5%, totaling $179 million for FY 2011. The high-volume/lower-value differential was attributed to an increase in express courier and consolidated shipments and the growth of websites selling counterfeit goods directly to consumers. The top 10 categories of counterfeit products seized were consumer electronics, footwear, pharmaceuticals, optical media, apparel, perfume/cologne, watches, cigarettes, toys/electronic games, auto parts and all other commodities. China continues to be the primary-source country for counterfeit and pirated goods seized, accounting for 62% or $125 million of the total domestic value of seizures.