Midwestern January 2015 Issue by Autobody News

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VOL. 4 ISSUE 4 JANUARY 2015

Four News Stories from 2014 that Will Impact the Entire Collision Repair Industry in 2015

Freer Auto Body in Illinois Raises Money Year-Round for Community Christmas

As in most years, 2014 ended with some unfinished business for the collision repair industry. Here’s a look at four of the news stories from this part year that will likely continue to make headlines in the year ahead.

At the age of 18, it was David Freer’s dream to own a body shop, and that dream came true in 1991 when he and his brother, Tim, opened Freer Auto Body in Godfrey, IL. From the start, Freer Auto Body contributed to Community Christmas, which was David’s favorite project. Community Christmas, sponsored by United Way and Telegraph, raises money, toys and clothes for 15 local agencies. These agencies then distribute the goods to more than 6,000 less fortunate families in Riverbend. According to his mother and shop owner Margaret Freer, David would purchase sale items throughout the year and save them for the event. When David passed away in an

by John Yoswick

1. “We are requiring that you have the separation of the work area, but that can be (achieved) using curtains and proper filtration; it’s not going to require brick and mortar.” Ford Motor Company’s Paul Massie was a featured speaker at many in-

dustry events in 2014 as they automaker prepared to roll-out its 2015 F-150 pick-up, the first high-volume aluminumintensive vehicle. Ford and Massie worked last year to convince about 750 of its dealerPaul Massie ship body shops – and about 850 independent shops – to invest in the equipment and training to be certified by Ford to work on the vehicle. For shops with virtually See Four News Stories, Page 20

Auto Body Associations Look Back on 2014

automobile accident on September 11, 2008, the Freer family decided to go even further with their contributions

The Godfrey Women’s Club baked all of the cookies for the year’s Cookies and Cocoa Community Christmas event

to Community Christmas by creating Cookies and Cocoa for Community Christmas the following December. “Freer Auto Body is very comSee Community Christmas, Page 16

Using Industry Statistics to Your Advantage with Mike Anderson by Victoria Antonelli, Online Editor

Statistics are a great way for any business, organization, or industry to figure out what areas need growth and improvement, and why. Mike Ander-

son of CollisionAdvice presented statistics helpful to every corner of the collision repair industry during his SCRS seminar at SEMA 2014. The following industry statistics, both regional and national, were taken from Anderson’s PowerPoint. The original sources are credited in each section. Studies by The Romans Group found: ● There are 13.3 million insured auto accidents annually ● Customers pay $3.2B (10.2% of total shop $) ● Insurers paid $28.2B ● Total repair revenue is $31.4B ● Up 2.2% from $30.7B in 2013

See Associations Look Back, Page 22

P.O. BOX 1516, CARLSBAD, CA 92018

From record snowfalls in the southern U.S. to a missing Malaysian airplane to the fear of an Ebola outbreak, 2014 was a memorable, if somewhat frightening, year around the world. In the American collision repair industry, 2014 was riddled with lawsuits against insurers’ unfair business practices and other battles for the rights of collision repair professionals, but industry associations still managed to provide some positive experiences for their members throughout the year. As the New Year rolls around, Autobody News asked a handful of association leaders about the most memorable things their associations did in 2014.

Dan Risley, Executive Director of ASA-National, states that “without a doubt, the most memorable thing in 2014 was NACE|CARS in Detroit. We made significant changes to the show including but not limited to the location, dates and show management company. We had no idea what to expect or how the industry would respond because the show had steadily declined for several years. What made it memorable was the overwhelming support and positive response from the industry. We are humbled, thankful and appreciative for all of those individuals and companies that helped make it a success.” “I think one of the most memorable moments of 2014 for me was at

Change Service Requested

by Chasidy Rae Sisk

by Victoria Antonelli, Online Editor

Mike Anderson of CollisionAdvice.com informs the packed seminar of industry statistics across the country

“A lot more people coming to your shops are paying out of their pocket,” said Anderson. “There are people in the industry looking to capitalize on that.” See Industry Statistics, Page 6

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Contents Audit Seminars . . . . . . . . . . . . . . . . . . . 4

Freer Auto Body in Illinois Raises Money

Year-Round for Community Christmas . . 1

Insurance Auto Auctions in IL Raises Over $142,000 to Battle Childhood Cancer

Through ALSF . . . . . . . . . . . . . . . . . . . . 4

Could Create Manufacturer Problems . . 34

Enterprise’s ARMS Application Helps Shops Track Cycle Time and Benchmark

Performance . . . . . . . . . . . . . . . . . . . . 39

Four News Stories from 2014 that Will Impact the Entire Collision Repair

Industry in 2015 . . . . . . . . . . . . . . . . . . 1

LaMettry’s Recycled Ride Goes to

Hey Body Techs! Malco Tools Are Built

MO Shops See Increase in Business

Industry Looks to Plant DNA to Solve

OH House Takes Up Mechanical

Judge Grants Permanent Injunction

Military Couple . . . . . . . . . . . . . . . . . . . 8 Following Icy Roads . . . . . . . . . . . . . . 16

Registration . . . . . . . . . . . . . . . . . . . . . . 8

Oxmoor Auto Group in KY Donates

Just for You . . . . . . . . . . . . . . . . . . . . . . 9

Scrap Metal Theft . . . . . . . . . . . . . . . . 26 Against Connecticut Anti-Steering

Auto Glass Law . . . . . . . . . . . . . . . . . . 34

Refurbished Car to Family in Need . . . . 13

Manheim Reports Wholesale Used

in MI . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Mitchell Fourth Quarter 2014 Industry

Staff Changes at Town & Country Sales

WI Driver Blames Beer Battered Fish Fry

for DUI. . . . . . . . . . . . . . . . . . . . . . . . . . 8

WI Shop Fined for Improper Disposal

of Hazardous Waste. . . . . . . . . . . . . . . 10

COLUMNISTS

Attanasio - Your To-Do Marketing

List for 2015 . . . . . . . . . . . . . . . . . . . . 14

Luehr - Successful Change Using Modern

Leadership. . . . . . . . . . . . . . . . . . . . . . 28

Yoswick - CIC Says ‘No’ to ASA, Sheila Loftus Predicts, Multi Association

Task Force, Labor Rates. . . . . . . . . . . . 32

NATIONAL

AASP-MN Announces 2015 Race for

Automotive Education . . . . . . . . . . . . . . 4

ABPA Convention Announced. . . . . . . . . . . 6

ABRA Expands in Wisconsin . . . . . . . . . . . 6

Auto Body Associations Look Back

on 2014 . . . . . . . . . . . . . . . . . . . . . . . . 1

Vehicle Price Adjustments in Q3. . . . . . 35

Trends Report Provides Insights

for 2015 . . . . . . . . . . . . . . . . . . . . . . . 36

New Alternative Fuel Vehicle Course Premiered by I-CAR, Both 1- and

2-Hr Offerings . . . . . . . . . . . . . . . . . . . 33

Nissan Settles Class-Action Suit Claiming

Faulty Brakes . . . . . . . . . . . . . . . . . . . . 17

Northeast Instructor And Students Gain A New Global Perspective Following

Trip To England . . . . . . . . . . . . . . . . . . 12

PPG Redesigned Website for

ADJUSTRITE . . . . . . . . . . . . . . . . . . . . 35

Recycled Rides Vehicle Goes to Mother of

Infant with Congenital Heart Disease . . 10

Sherwin-Williams “Media Center”

Website Addition . . . . . . . . . . . . . . . . . 36

The Hybrid Shop Carves a Niche in Hybrid

Maintenance and Service . . . . . . . . . . . 30

Toyota’s “Game-Changing” Recommended Repair Procedures Set to Launch

in 2015 . . . . . . . . . . . . . . . . . . . . . . . . 37

Chrysler And Fiat Names Dropped

Web-Est and Crash-WriteR Announce

Commercial Customers—A Reliable

Website Connects Collision Shop Owners

From Corporate Titles . . . . . . . . . . . . . 17

Business Source . . . . . . . . . . . . . . . . . 18

Merry Christmas, Happy Holidays, and a Joyous New Year from all of us at Autobody News. We look forward to bringing you our collision news in 2015, including a more frequent e-newsletter, more regional coverage and easier access to content on our websites. Get in touch with us to promote your regional events, association meetings and anything you think the rest of the industry should know. Advertisers can reach us at advertising@autobodynews.com. Articles can be submitted to editor@autobodynews.com. Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Closing of Acquisition Agreement. . . . . 39

& Auto Techs: TalentMonger.com . . . . . 36

Assured Performance . . . . . . . . . . . . 6 Audi Wholesale Parts Dealers . . . . 33 BMW Wholesale Parts Dealers . . . . 31 Bumper Smith Nitrogen Welding Station . . . . . . . . . . . . . . . . . . . . . 14 Car-Part.com . . . . . . . . . . . . . . . . . . 16 CarcoonAmerica Airflow Systems . 21 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 19 Charles Gabus Ford . . . . . . . . . . . . 27 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Color-Dec North America, Inc. . . . . 10 DJS Fabrications, Inc.. . . . . . . . . . . 40 Equalizer Industries, Inc. . . . . . . . . . 4 Erhard BMW of Bloomfield Hills . . . 26 Erhard BMW of Farmington Hills . . 26 GM Wholesale Parts Dealers . . . . . 32 Graham Auto Mall . . . . . . . . . . . . . . 20 Hall Volkswagen-Mazda . . . . . . . . . 13 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Motor America . . . . . . . . . . 5 Hyundai Wholesale Parts Dealers . 37 Jake Sweeney Chevrolet . . . . . . . . 28 Kia Wholesale Parts Dealers. . . . . . 36

Serving Illinois, Iowa, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC.

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Midwest

ASA-Midwest Hosts Wage and Hour

Dropping Gas Prices and Strong Car Sales

Indexof Advertisers

REGIONAL

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Laurel Auto Group of Westmont . . . 23 Lexus Wholesale Parts Dealers . . . 39 Luther Hopkins Honda . . . . . . . . . . 18 Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9 Maplewood Toyota-Scion . . . . . . . . . 8 Mazda Wholesale Parts Dealers . . . 35 Mercedes-Benz . . . . . . . . . . . . . . . . . 7 MINI Wholesale Parts Dealers . . . . 31 Mitsubishi Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . 37 MOPAR Wholesale Parts Dealers . . 29 Morrison’s Auto Parts . . . . . . . . . . . 22 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SATA Spray Equipment . . . . . . . . . 11 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . 16, 17 Subaru Wholesale Parts Dealers . . 34 The Sharpe Collection of Automobiles . . . . . . . . . . . . . . . . 12 Toyota of Des Moines . . . . . . . . . . . 27 Toyota of Grand Rapids . . . . . . . . . 30 Toyota Wholesale Parts Dealers . . . 35 Valspar Automotive . . . . . . . . . . . . . 15 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 33

www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 3

Insurance Auto Auctions in IL Raises Over $142,000 to Battle Childhood Cancer Through ALSF

Insurance Auto Auctions, Inc. (IAA), a business unit of KAR Auction Services headquartered in Westchester, IL, has raised over $142,000 for Alex’s Lemonade Stand Foundation (ALSF) to help raise awareness and funds in the battle against childhood cancer. In recognition of September’s National Childhood Cancer Awareness Month, IAA raised funds through a month-long fundraising campaign by selling lemonade onsite in over 100 IAA branch locations during auction sale days. IAA has raised over $400,000 to date since beginning company-wide fundraising efforts for the Foundation. In addition to cash donations, insurance companies and other donors donated proceeds from the sale of vehicles at IAA auctions that contributed to fundraising efforts. “I am proud of the enthusiasm with which IAA employees contributed toward this great cause, and I am honored by the generosity of IAA’s providers and buyers in donating vehicle sales that helped us surpass our fundraising goals by 42 percent,” said John Kett, CEO and president, IAA. “Our team came to-

gether in creative and impactful ways—our Houston branch raised over $16,000 and our Orlando-North branch customized a yellow 2005 Harley Davidson with ALSF colors and decals that auctioned for $6,000—all to support Alex’s Lemonade Stand Foundation in the fight against childhood cancer.” “Alex’s Lemonade Stand Foundation thanks IAA for its critical support in this important fight against childhood cancer,” said Liz Scott, Alex’s mom and Co-Executive Director of ALSF. “For the past few years, IAA has consistently been among our top fundraising companies, and we are pleased to continue our mission together in making a difference in the lives of children with cancer, supporting research into new treatments and cures for pediatric cancer.” This is the third year that IAA has committed to a corporate-wide partnership with the foundation. In previous years, IAA participated in ALSF’s National Lemonade Days in June, a collaborative initiative that raises nearly $1 million for childhood cancer research over the course of three days.

AASP-MN Announces 2015 Race for Automotive Education by Chasidy Rae Sisk

The Alliance of Automotive Service Providers in Minnesota (AASP-MN) announced that their 13th Annual Race of Automotive Education will be held on January 13-15, 2015 at ProKart Indoor Racing in Burnsville, MN. The 2015 Race of Automotive Education will consist of teams made up of AASP-MN members and other industry supporters competing in kart racing at speeds up to 40 miles per hour, and the association anticipates that they will raise around $10,000 by the final wave of the checkered flag. This yearly event is the primary fundraiser for AASP-MN’s Automotive Education Fund which provides financial resources to support students in the automotive field, to enhance automotive educational programs, and to raise awareness of the career opportunities in the automotive service industry. Since the AASP-MN Automotive Education Fund began, nearly $161,000 has been disbursed directly to students enrolled in automotive education programs, both through the

association’s scholarship program and through the Skills USA Competition. Judell Anderson, Executive Director of AASP-MN, states “the industry and our members benefit when automotive students are encouraged to stay in school and complete their training prior to entering the industry. The financial help provided by scholarships allows students to do this. We expect that, while enjoying an evening of fun and camaraderie, participants will also raise close to $10,000 for the Scholarship Fund.” The majority of the money AASP-MN expects to raise has been allocated to scholarships for students entering their second and last year of a NATEF-certified automotive program, either collision or mechanical, in the state of MN. AASP-MN will choose and announce the recipients of their scholarships in the spring of 2015. AASP-MN 1970 Oakcrest Ave, Suite 102 Roseville, MN 55113 612-623-1110 www.aaspmn.org

4 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

ASA-Midwest Hosts Wage and Hour Audit Seminars by Chasidy Rae Sisk

In November, the Automotive Service Association of the Midwest (ASAMidwest) held seminars for two chapters entitled, “Are YOU Prepared for a Wage and Hour Audit?” Because it is difficult to understand the Federal Wage and Hour Law, “ASA-Midwest tries to put a bi-annual focus on this issue,” Sheri Hamilton, Executive Director of ASA-Midwest, explains. “We try to provide information to ensure that shop owners understand pay structures, who can be paid on salary, how overtime should be calculated, and other matters related to these laws.” Thousands of businesses are audited yearly, and violations can be an expensive mistake. Rather than assuming that they understand the law, shop owners who attended the association’s Wage and Hour Audit seminars took the step to interpret the law correctly. Susan Wagner of the U.S. Department of Labor, Wage and Hour Division taught the seminar and led the discussion that followed. Hamilton says, “we try to provide the information necessary to keep them out of trouble, but we also explain how the audit process works

in case they do get audited. Attendees also had an opportunity to ask questions so that they can better understand their responsibilities as employers.” Hamilton stated that both meetings were well-attended, informative and successful. The Central MO Chapter held their seminar on November 18 at Bandana’s BBQ in Columbia, MO, and the Lincoln Chapter’s seminar was held on November 25 at the Hy-Vee Club Room in Lincoln, NE. Cost for members was $25 with non-ASA members paying only $30 to attend this informative session. ASA-Midwest 244 W. Mill St, Suite 105 Liberty, MO 64068 816-781-5801 www.asa-midwest.org

To advertise call Advertising Sales at:

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Continued from Cover

Industry Statistics

Trends - Higher deductibles and more customer-pay work means shops are: ■ Offering no-interest financing ■ Offering 90 days same-as-cash ■ Suggesting gap insurance (www.4ubenefits.com) ■ Using tools to show how claim may impact rates ■ Offering good-better-best options

“According to a focus group study by 3M Automotive, the biggest complaint customers had was a lack of options,” said Anderson. “People want to feel like they have a part in the decision making. For example, a guy comes in with his 16-year-old who just crashed her car and needs the headlight fixed. Say, ‘we can fix it for $100, and it will still be safe and effective, but won’t look as good. The best option would cost $200.’”

with growth in number of shops ● Still down from 5.7% peak in 2005, but up 3.1% from 2011 ● The 34,430 total does not include more than 6,300 dealership body shops, nor small shops without payroll

“Since 2011, we’ve been seeing an increase in shops and the number of people working in the collision repair industry,” said Anderson. “The biggest area of increase is the office – we now have more people working in administration than ever before.”

‘Backyard’ Competition Stats: (U.S. BLS, CollisionWeek) ■ In 2011, 83,721 individuals reported wide variation in annual wages ■ Top painters average $70,420 compared to $25,700 for lowest 10% ■ Top body techs average $66,870 compared to $22,970 for lowest 10% ■ Top estimators average $83,990 compared to $32,390 for lowest 10%

Collision Shop Population Stats: (US Census Bureau, U.S. BLS, and Crash Network) ● Preliminary government data indicates 2014 will be third year in a row

Leasing Continues to Grow (Edmunds.com) ● Upside for shops: Leased vehicles tend to get repaired ● Potential downside for shops: Rising numbers of off-lease return vehi-

The Automotive Body Parts Association (ABPA) announced that the 2015 Annual Business Meeting and Trade Fair will be held in downtown Chicago, IL from April 21-24, 2015. The venue will be the Drake Hotel. “With the great success that we had in Austin in 2014, we listened to our members and will build upon the feedback they provided to make our convention in 2015 in Chicago even better,” said Edward Salamy, Executive Director of the ABPA. “We will be expanding on our successful educational breakout programs and our guest speakers will provide valuable information for our members as it relates to running their businesses.” Automechanika Chicago, the largest U.S. trade show for automotive technicians and shop owners, starts the following weekend, which will enable attendees to visit both shows without paying twice for airfare. For reservations, call 1-80055-DRAKE or visit https://aws. passkey.com/event/12546016/ owner/2879/home. The group code for guests is ABP and the cutoff date for the room block is March 30.

ABRA Auto Body & Glass announced the opening of a new franchise repair center in Hudson, Wisconsin about 20 minutes east of St. Paul, Minnesota. The additional opening increases ABRA’s total repair center portfolio to 253 in 20 states. The accelerated and continued growth is part of the company’s aggressive initiative to dramatically increase its national footprint. Duane Rouse, ABRA’s President and Chief Executive Officer, said the company’s franchise strategy has very specific goals. “Our focus has always been to provide vehicle owners with consistent service and a superior collision repair experience. By opening franchise repair centers in small and mid-size markets, we can help our insurance partners streamline the claims process for our customers.” “Opening the Hudson repair center is an opportunity to show the St. Croix Valley and Western Wisconsin community ABRA’s superior customer service and industry-leading processes,” said Mark Wahlin, ABRA’s Vice President of Franchise Development/Relations. “Our continued success and aggressive growth can be attributed to the commitment of our people and proven collision repair operations.”

ABPA Convention Announced

ABRA Expands in Wisconsin

6 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

cles in the coming years can drive down used car prices, which can drive up total losses

Labor Rates vs. Overall Inflation (Crash Network) ■ When looked at nationally, labor rates have not kept up with inflation. ■ Overall U.S. inflation 2006-2013 was 15.6%. ■ The national average rates for body/paint, frame and mechanical rose 14% or less during that period. ■ The national average rate for paint materials went up 19.7% from 20062013

Average Labor Hours per Claim: (Mitchell International) ● 2011: Avg. repair labor hours - 8.8, avg. removal of labor hours- 6.54, avg. refinish hours- 9.19 ● 2012: 8.78 hours, 6.85 hours and 9.23 hours ● 2013: 8.74 hours, 6.94 hours, and 9.25 hours ● 2014 (1Q): 8.31 hours, 6.94 hours, 9.13 hours Uninsured Drivers (Insurance Research Council) ■ All but one state (New Hampshire)

requires drivers to have insurance ■ Percentage of uninsured motorists rises or falls with unemployment (so percentage has fallen since 2009) ■ About 29.7 million drivers (12.6%) of drivers nationally lack insurance, down from 14.9% in 2003

Inflation Comparison (Collision Week) ● Over the last 12 months, price of auto insurance and body work increased above the rate of inflation ● And since 2009, body work has risen 13.11%, slightly ahead of the overall inflation rate of 12.65% during that period ● But auto insurance costs have risen considerably higher, up 24.53% since 2009

Anderson says insurance companies need “service, speed, and accuracy” from body shops, in order to be as effective as possible. “Body shops should give extraordinary service, fix the car fast with quality, which is possible with a team system, allowing for more hands on deck and be accurate - know when the car is going to be returned to the cusSee Industry Statistics, Page 17

www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 7

OH House Takes Up Mechanical Registration

On Dec. 9, the Ohio House of Representatives’ Committee on Commerce, Labor, and Technology reported Senate Bill 232, which recently passed the Senate by an overwhelming majority. If enacted, SB 232 would extend the jurisdiction of the Motor Vehicle Repair Board (MVRB) to include mechanical repairers. Under current law, only collision repair facilities are required to register with the MVRB. This loophole for mechanical repairs has allowed “backyard” operators to undercut legitimate businesses by avoiding compliance with the Occupational Safety and Health Administration’s (OSHA) laws and Ohio’s environmental standards. Because many of these “backyard” shops do not pay taxes or workers’ benefits, there is a considerable price difference between these operators and law-abiding shop owners. SB 232 would ensure that all automotive repair professionals are adhering to a uniform set of service and safety standards. The Automotive Service Association (ASA) strongly supports this legislation. When the Ohio Senate considered SB 232 in March 2014, ASA sent a letter to Commerce and Labor Committee Chair Kevin Bacon expressing support for the bill. In the

letter, ASA President Dan Risley stated, “Senate Bill 232 will ensure shops meet at least the minimum requirements to conduct business within the State of Ohio, provide consumers confidence that they are dealing with legitimate and professional automotive repair businesses, protect consumers, shop employees and the environment by ensuring that these repair businesses and their employees are properly trained.” When hearings on SB 232 began in the OH House, ASA sent another letter of support to the committee, urging members to pass this bill before the end of the legislative year. ASA encourages Ohio’s mechanical repairers to go to ASA’s legislative website, www.TakingTheHill.com to send a letter to their representative in support of SB 232. The ASA is the largest not-forprofit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership that includes affiliate, state and chapter groups from the mechanical and collision repair segments of the automotive service industry. To learn more about ASA,visit www.ASAshop.org or call (817) 5142923 or (817) 514-2931.

LaMettry’s Recycled Ride Goes to Military Couple

WI Driver Blames Beer Battered Fish Fry for DUI

LaMettry’s Collision & Glass recently donated a fully restored 2008 Chevrolet Impala to a newlywed couple returning from their deployment to Afghanistan. The recipients, Sean and Nichelle, are members of the Minnesota Army National Guard 114th Transportation Company, welcomed back to Minnesota in September. At the presentation, Sean and Nichelle spoke of how they were in “complete disbelief” at receiving the vehicle. “This is a huge help for us,” they said. The community effort to make this donation happen for two well deserving vets was emphasized throughout the event. “It is a privilege to be part of a company and a local industry that is willing to invest time and dollars to demonstrate our appreciation to those in our military who give so much to represent and protect us,” said LaMettry’s President of Operations, Darrell Amberson. Colonel Johanna Clyborne of the Minnesota Army National Guard thanked “the community as a whole that has stepped forward, working together to fill a need.” The vehicle was donated by American Family, and repaired by LaMettry’s Collision with help from many local vendor partners.

Authorities say a Wisconsin man suspected of his 10th drunken driving offense is blaming a Wisconsin tradition for his latest legal troubles. A criminal complaint filed in Adams County says 75-year-old John Przybyla told the deputy that stopped him that the reason he smelled like alcohol is because he had been at a fish fry and had eaten beer-battered fish. A complaint says the deputy had spotted Przybyla make a U-turn on Highway 13 in Dell Prairie last October, followed his vehicle and discovered he had a revoked license. He was taken to a hospital in Adams for a blood test. WSAW-TV reports Przybyla has previous conviction in Milwaukee, Adams, and Columbia counties dating back to 1995. A Jan. 21 preliminary hearing has been scheduled. Court records do not list a defense attorney.

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Hey Body Techs! Malco Tools Are Built Just for You by Ed Attanasio

One consequence of the evolution of the collision industry is that better tools exist now than ever before, thereby dramatically improving the working lives of body technicians everywhere.

The S6R Redline, 6-inch model, Hand Seamer by Malco Products is designed to save time, prevent hand fatigue and last for many years

Malco Products, Inc. in Annandale, MN, won first place at the 2014 SEMA Show’s New Product Showcase in the Collision Repair and Refinish Products category for its Quarter Panel Hemming Air TurboXTool. Founded in 1950, Malco was a market pioneer with its innovative HVAC hand tools initially, but today the company serves several industries, including collision repair.

Designing tools that are easy to use and cause minimal impact on the human body has been instrumental in Malco’s success. When the company designs any tool, it first looks at how it will be used; how long it will last and how it can save labor and wear and tear on the person that will use it every day. If a tool does the job, but it injures the hands, elbows or shoulders of the user, what’s the advantage? As a body shop owner, you obviously want your techs to be healthy and injury-free, because losing an employee to injury can drastically impact your cycle times and compromise your production. One of the most unique aspects of all Malco’s hand tools are the fact that they’re designed to comfortably fit hands of all sizes, from small to very large or gloved hands. The human hand’s natural power stroke range falls within a gripping range of 2-1/2 to 3-1/2 inches (63 to 89 mm). The challenge for accommodating this entire range is to provide handle openings and natural ergonomic contours that complement hand strength and resist strain and fatigue of repetitive motions without sacrificing the labor-saving, productivity

features of the working end of the tool, such as length of cut or throat depth. This balancing act has been achieved with all of Malco’s Redline Handled family of Hand Seamers (hand brake) and the company’s 11 models of “Andy” lightweight-with-the-strengthof-steel Aluminum Handled Snips.

This model MV12“Andy” Aluminum Handled Snip is designed with the busy body tech in mind and is specially designed to cut plastics including auto bumpers

Development Engineer Thomas Batho has worked on Malco’s design team for the past 15 years, which means he has played an integral role in the creation of more than 50 tools for Malco. “Every tool we make is designed with things like ergonomics, safety and the life cycle of the tool at the forefront,”

Batho explained. “We pride ourselves on making products that the customers want because they fill a need and then we stand behind them 100%. That’s something we take very seriously here at Malco.” At least 1,000 hours goes into the development of each tool manufactured by Malco. The company’s Redline Handled seamers were no exception, according to Batho. “With every tool, we do the field research first—to see if there’s a need and where the markets are headed. With our collision tools, we go to body shops to gather data. We personally visit shops in our area and do webinars with others country-wide. The ideas come in and the results are documented. Then we enter the concept stage followed by the initial design stage and prototyping. When we have a functional product we take it into the field and get reactions from techs, before we finalize it. Once we’ve completed that, we release it to manufacturing, do final testing and finally offer it to the public.” More information about the tool designs and the entire Malco Products line can be accessed at www.malcotools.com.

www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 9

Recycled Rides Vehicle Goes to Mother of Infant with Congenital Heart Disease The gift of a Recycled Rides vehicle will make life a little easier for a young, single mother who is juggling obtaining an education with taking care of an infant who requires specialized medical care. When Diamond Shouse was five months pregnant, she found out the baby had a significant heart disease that would require a number of open heart surgeries throughout his life. Leon was born at Saint Elizabeth Regional Medical Center in Lincoln on June 5, 2014. He was immediately taken to Children’s Hospital & Medical Center in Omaha, where within a few weeks he underwent his first surgery. The shunt that was inserted in his heart to keep a valve open was a temporary fix, and the infant is facing what Shouse refers to as “the big fix” later this year or early next year. Leon will have another surgery when he’s between the ages of three and five, and there will be other operations as he grows older. Shouse, who lives with her parents in Lincoln, Nebraska, previously borrowed her dad’s truck when she needed to take Leon to an appointment or run errands. A number of the appointments require her to drive to Children’s Hospital in Omaha to see specialists, and she will stay in Omaha when Leon has surgery.

WI Shop Fined for Improper Disposal of Hazardous Waste

A father-son owned body shop, functioning out of a residential garage in rural Oconto, WI, will pay about $3,200 in fines for improperly burning paint solvent, according to Paul Srubas, greenbaypressgazette.com. Timothy and Travis Hanaway must each must pay $1,597.50 for improper storage and disposal of hazardous waste over the last five years, according to the state Attorney General’s office. A criminal complaint stated that TNT Auto Body generated about five gallons of used solvent every three or four months. The owners then disposed of it in a burn pit on the property, reported Srubas. According to the Department of Natural Resources, hazardous waste must be stored in non-leaking containers, labeled as hazardous waste and properly disposed of through a licensed treatment storage and disposal facility. The WI Department of Natural Resources directed the Hanaways to store and dispose of the waste properly and to hire a contractor to evaluate soils in the burn pit area, the AG’s office said on December 11. According to Srubas, they have been complying with the orders.

On December 11, Shouse was presented with the keys to a 2006 Mercury Mariner at a luncheon in Omaha. Shouse said it is a blessing to receive the vehicle. “It puts me farther down the path to becoming independent.” Her three-to five-year plan was to stay with her parents so she could save up for a car and move out. “Now, the plan has changed in a good way,” she says. Her goal is to have a career writing musical productions. She started taking general studies classes this summer at Southeast Community College, then took the fall off to care for Leon. Shouse plans to return to classes in January. Before Leon was born, Shouse’s dream was to attend Full Sail University in Florida to study music production. Now, she wants to find somewhere closer to home to continue her education following community college so that Leon’s grandparents will be close. Shouse writes music and plays piano and violin. “I like any kind of music,” she said. For now, Shouse is focused on Leon, who she describes as a happy baby, as she waits to hear when his next surgery will be scheduled. And she’s thankful for the gift of the Recycled Rides vehicle. “I am blessed. I am happy. I am so grateful,” she says. “It is going to really help me out.”

“Recycled Rides” is a community service program of the National Auto Body Council where body shops repair and donate recycled vehicles to families in need. The Mercury Mariner, which had been totaled as a result of a collision, was donated by Farmers Insurance and was refurbished and repaired by CARSTAR Silver Hammer Body Shop, 4827 N. 90th Street in Omaha. Greg Petersen, co-ower of CARSTAR Silver Hammer, said body shops frequently see cars written-off or totaled by either the owner or insurance company and sent to salvage yards. “Many times all these vehicles need is some body work, mechanical repairs or TLC to get them road ready and safe to drive,“ Petersen said. “We are grateful that Farmers Insurance generously donated a salvage car for our shop to repair. Repairing this car has been a labor of love. Our staff worked hard to make the donation a reality.” “At Farmers, we’ve recognized that access to a safe and reliable vehicle is one of the most important resources a family needs to get back on their feet financially,” said Doris Dunn, Director of Community Relations for Farmers Insurance. “Over the years we’ve donated a number of restored vehicles to help families in need.”

Farmers Heartland claims office employees, agents and district managers also donated funds to purchase Shouse’s car insurance and other necessities. Midwest Heart Connection sought nominations of families affected with congenital heart disease, and Shouse was the recipient. Midwest Heart Connection is a non-profit organization that provides support for children and adults with congenital heart disease, promotes awareness of the disease, and raises funds for research, education and treatment. “Midwest Heart Connection is thrilled to partner with CARSTAR and Recycled Rides to provide Diamond and her family the transportation they need to travel easily and safely to the many medical appointments required by someone with congenital heart disease,” said Brain Luke, President of Midwest Heart Connection. Petersen said many other businesses and organizations helped to make the gift possible. Recycled and aftermarket parts were donated by LKQ Corporation and Keystone Automotive Industries. Additional parts and services were donated by: 3B’s Towing, Absolute Auto Dent, Auto Tech, Auto Zone, Baxter Ford, Chahity Cars, J.D. Casey Paint, National Auto Body Council, Nebraska Frame and Alignment and CARSTAR Silver Hammer technicians.

Staff Changes at Town & Country Sales in MI

Town & Country Sales in Quinnesec, MI recently announced some changes in its staff with a new service manager, service adviser, collision center manager, and an internet manager/marketing coordinator, according to www.ironmountaindaily news.com. Kyle Pirlot, a 2005 graduate of Iron Mountain High School, is taking over as service manager. He has been with the dealership for four years and is a certified Ford master mechanic. Travis Gedvick, 2011 graduate of Northeast Wisconsin Technical College, will be promoted to the position of collision center manager. He received his Associates degree in collision repair and refinishing. Gedvick is certified in several areas including I-CAR Platinum, I-CAR F150 aluminum repair, State of Michigan certified in collision repair, and CCRM certified. The duties of Internet manager and marketing coordinator will be taken care of by Shannon Nichelson. She has worked in customer service and hospitality for more than 16 years. Kathy Cunningham is the new service adviser. She has been in customer service for more than 10 years.

10 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 11

Northeast Instructor And Students Gain A New Global Perspective Following Trip To England

by James Curry, Northeast Community College

Dave Beaudette said a recent trip “across the pond” has given him and five of his students at Northeast Community College a better understanding of themselves and the world in which they live. “I think each of us came home with a greater appreciation of our program, our college and our country.” Beaudette, auto body instructor at Northeast, and the students traveled to North Lindsey College in Scunthorpe, England, for a ten-day visit from October 12-21, as part of a student and faculty exchange program established between the two colleges in 2012. Pam Saalfeld, associate dean of humanities, arts and social sciences at Northeast, accompanied the group. The students making the trip included Kyle Ebel, Scribner, Caleb Fowlkes, Meadow Grove, Dustin Johansen, Friend, William Weiland, Decatur, and Kellen Wells, Norfolk. Beaudette said North Lindsey’s auto body program compared favorably to Northeast’s. “They are in the process of building a new shop, but it

will be much smaller than ours and they don’t do much collision work. We certainly came back with a greater appreciation for our shop and our auto body program in general,” he said.

coating, so they are certainly not all water based considering that undercoats and clear coats are solvent.” Beaudette said they spent time in the classroom and working in the auto body lab at North Lindsey, where the students were able to take time to work on panels and spray water base paint. He said he was proud of each student as they did very well with the work and conducted themselves in a professional manner. Beaudette said, “It seems ‘panel beaters,’ as they call body men and painters, are in Northeast Community College auto body students prepare short supply across the counto work in a shop on the campus of North Lindsey College in Scunthorpe, England. The students and their instructor, try, both in auto and truck Dave Beaudette, traveled to England recently as part of shops. Wages and benefits are an exchange program between the two schools. Pictured comparable to here, but the (from left) are Kyle Ebel, Scribner, Caleb Fowlkes, government supplies health Meadow Grove, William Weiland, Decatur, Dustin care.” Johansen, Friend, (partially hidden) and Kellen Wells, Norfolk. (Courtesy Dave Beaudette/ Northeast Community The group visited a large College), Photo credit: James Curry, Northeast Community body shop chain that has 27 College locations and 400 employees. “Paint techniques are not much differBeaudette said they learned the coment with the exception of more water pany faced the same business chalbase coat. They still use some solvent lenges seen by many businesses in the base coats, but they label it industrial United States, specifically larger ma-

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terial costs and 12 or more different insurance programs. “Most cars are very small in England and almost all of them have manual transmissions while 85-percent of them are leased vehicles, so the shops also deal with many lease companies. The road tax in England is based on the fuel economy of each vehicle,” he said. All of the students said one of the hardest adjustments to being in England was the size of cars, the steering wheel on the right side and driving on the opposite side of the road compared to here. “You would walk up to a car to get in to the passenger side and it was actually the driver’s side,” Ebel said. “They have a lot of hatchbacks and small coupes that can navigate their small roads. Most of our cars would not make it through there.” The students did get to experience driving in England, but it was not in the opposite lane. As part of a motorsports program, North Lindsey has set up a go-cart racing competition at a track in nearby Grimsby. Beaudette said it was a day of good natured, but

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serious competition of which his students fared very well.

English countryside. “In this culture, it seems many of the buildings are 500-plus years old. All construction is brick, so it lasts for many, many years. We spent several days sightseeing Lincolnshire and sea ports in the region. The culture and the architecture were simple, but overwhelming to us. It is unbelievable to see what was built by hand Dustin Johansen, Friend, and Kyle Ebel, Scribner, auto many hundreds of years ago body students at Northeast Community College in Norfolk, and is still in remarkable shape NE, work on a panel in a lab at North Lindsey College in and is still used today,” he Scunthorpe, England. Johansen and Ebel and three other said. “Everything is extremely students and their instructor, Dave Beaudette, were in England recently as part of an exchange with North Lindsey. ornate and beautiful inside and (Courtesy Dave Beaudette/Northeast Community College), out. It’s hard to believe it was Photo credit: James Curry, Northeast Community College built by hand. For example, it The Northeast delegation also had took 20-years to build Lincoln Cathethe opportunity to tour MAN Truck dral and one wonders how many workand Bus, which offers a comprehensive ers lost their lives in the process?” range of commercial vehicles, buses, coaches and industrial engines to operators and companies in the United Kingdom. They also toured a factory The second half of this museum for vehicle manufacturers article will be featured Range Rover, Aston Martin and Jaguar. in the February 2015 Beaudette said in walking across Midwestern issue. campus, he and the students were struck by the age of the buildings, not only at North Lindsey, but across the

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Oxmoor Auto Group in KY Donates Refurbished Car to Family in Need

Oxmoor Auto Group in Louisville, Kentucky has been fixing up cars and donating them to local families in need as part of the nationwide program Recycled Rides, sponsored by the NABC and Progressive, according to voice-tribune.com. The auto group selected The Cabbage Patch Settlement House as their recipient because of their Patch Parents program. This special program aims to break the cycle of poverty through commitment to intensive, long-term case management services. This is the second year that a Cabbage Patch client has been the recipient of a Recycled Rides automobile, according to voice-tribune.com. The refurbished 2013 Toyota Corolla was revealed to Feona Hayes at Oxmoor Collision Center on Nov. 24 at 3 p.m. Hayes was selected to receive the donation because of her active participation in Patch Parent programs and her dedication to her children’s education and development through The Cabbage Patch’s youth programs, according to voice-tribune.com. Hayes is a single mother who previously relied on a borrowed car to

get to and from her job at Jefferson County Public School, run errands, and drive her 12- and 17-year-old to the Cabbage Patch programs. The Corrolla is a much safer form of transportation, compared to the older model she had been driving, and the excellent gas mileage will make it possible for Hayes to save more money toward her goal of buying her own house and sending her children to college. Over the course of two months, employees at Oxmoor Collision Center donated hours of their time on weekends to make the once-damaged Corolla look new. According to voice-tribune.com, many other sponsors contributed to the giveaway, including Enterprise Car Rental, Five Star Wheels, Gipe Automotive, Grade A, PPG Paint, Toyota Corporate and Acudent. For more information about The Cabbage Patch, visit www.cabbagepatch.org.

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Media and Publicity for Shops Your To-Do Marketing List for 2015

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

When body shop owners ask me how can we get started on marketing for our shop, I tell them to start off with baby steps and gradually build your efforts over time. Marketing for any business is like chopping down a huge tree and the average small company does not have the means or money to knock it down with one full swoop. Imagine that marketing is like a big old Redwood tree and you’re sitting there with a little pen knife, but if you keep hacking away at it, eventually you’ll see results. So, I came up with this list of five deliverables—things you can start doing tomorrow. Why just five? Because it’s better to do five things right, as opposed to 500 poorly. After you’ve successfully achieved these five things, come up with five more, but don’t try to do everything—advertising, public relations, online marketing, social media, etc.—all at once, because then you’re setting yourself up for failure. Make a list and work through it and delegate if you can and then re-group after say six months and assess what has worked and what hasn’t.

1) Get Closer to Your DRPS Strengthen the insurer relationships that you currently have while always looking for more, because you may be doing well currently, but what if a new shop (or an MSO) moves into your region and cuts into your workload? We’re all aware that this is the age of consolidation, so it’s more than likely that new players may enter your market at any time. If one or more of your DRPs is shaky for whatever reason, either shed them or figure out ways to re-energize them. Keep continually engaged with your insurance agents, through e-mail marketing, networking events, blogs, occasional drop-in visits and social media. Facebook and Instagram might not be appropriate for your DRPs, but LinkedIn is a perfect vehicle to keep your insurance partners in the loop. Have constant and open communication with insurers, and offer insurer services at your shop, such as hosting continuing education courses, for example. Some body shops have special sections on their web sites dedicated to their insurance partners. Many of these require passwords and some

shops ask their insurance agents to register before then can access these exclusive sections. On these pages, shops can offer valuable information for insurance agents and even maybe entertain them a little too. In some of these exclusive sections, insurance agents can keep abreast of their company’s cars in your shop and message the shop’s personnel, if needed.

2) Get Closer to Your Community Improve your shop’s image in the community by host local events like a summer barbecue, or sponsor organizations that are important to the people in your region. Don’t’ be another faceless company and start reaching out to the community and supporting charitable organizations if you can. Be sure to identify local charities that community members have a connection with and reach out to them. Giving refurbished vehicles to people in need is a big way to achieve this, because the local media loves these types of stories and you’re playing a positive role in your own backyard, which is huge. Too many shop owners are like groundhogs—they stick their heads out of their shop only occasionally and people in their community don’t get a chance to meet them or know them. A body shop’s image should be the same as a bank’s or a hospital’s—leverage the good things you do in the community and make yourself visible at events and other occasions. Check into your local chamber of commerce and start attending their business mixers, because if more people see you, it can only enhance your position in your region. If you’re out there and your competitors are not, there’s a distinct advantage there for obvious reasons. You want people to think about you when they get in an accident and one of the best ways to achieve this is by being seen and building a reputation for being a business that just isn’t into making a buck. 3) Get More Social Utilize social media more this year. Use Facebook, Twitter, Google + or Foursquare to get your message out there especially to the younger generation of customers. Research the newest forms of social media, but just don’t

14 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

jump in without determining if it’s right for you. There are a lot of shops out there trying to use certain types of social media that aren’t ideal for them. If you start a Google + account and then never post anything, that looks bad. Find 4-6 forms of social media and post items on them (pictures and videos are best) and stay with them for the duration. Post on a regular basis and don’t deviate, because hammering away at social media is the most effective way to do it. If a customer can see that you haven’t posted anything on Facebook in quite some time, for example, it can actually hurt your image more than you think.

4) Update Your Web Site I’m shocked whenever I see a big, very successful body shop with a web site that is obviously 5-7 years old. With all of the great new platforms and development tools out there, remodeling your web site can likely be much easier this time around. With so

many new bells and whistles available for even a very simple site, you can quickly keep up with the shop down the street and stand out online. We all know that the Yellow Pages are on the endangered list and more and more people are going to their laptops, smart phones, iPads and other devices to find businesses, including body shops. If a potential customer sees a dated web site with old-looking graphics and clunky navigation, they’re going to keep looking. It’s all about “image perceived, mission achieved” and making a good first impression. Having a shabby web site is like having an ugly waiting room or dirty bathrooms. So, if your site is outdated, make a point to get a new one in 2015. 5) Get a Blog! A decade ago, people didn’t take blogs seriously. They thought a blog was for amateur poets or quilting clubs, but those See Your To-Do Marketing List, Page 18

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Continued from Cover

Community Christmas

munity minded,” said Margaret. “Our community has supported us 100 percent in all of our endeavors, so we try to give back as often as possible.” The shop’s finances, office management, public relations, and “you name it” are handled by Margaret. Her son, Tim, who co-owns the shop took over as president after David passed away. Margaret’s husband and daughter-in-law are also employees. The family’s seventh annual Cookies and Cocoa event, which took place on December 4, has raised $3,800 in cash donations so far, as well as 41 bikes and barrels of coats and toys. “We bought 36 of the bikes, and then our friends contributed the other five,” said Margaret. “I buy the coats from Rothschild; they give me an 85 percent discount for the event.” This year, Godfrey Women’s Club made all the cookies for Cookies and Cocoa, while in past years, Margaret and her two granddaughters, Taylor, 11, and Lily, 8 were in charge of baking. “[Godfrey Women’s Club] is a group of local women who do a lot of

good in the community,” said Margaret. “We are friends with all the ladies, so one of the members asked if she could make the cookies this year, which saved me a lot of work.”

Margaret’s granddaughters, Taylor and Lily Freer, pose in front of the spread of cookies before the crowd comes

The traditional holiday season isn’t the only time the Freers spread Christmas cheer. For the past five summers, they have raised money for the Community Christmas in December with a Christmas in July event. “It all started when Taylor wanted to donate her piggy bank to Community Christmas,” said Margaret. “I suggested they start a lemonade or Kool-Aid stand instead.”

The idea for a lemonade stand took off, and turned into a full-blown fundraiser. The girls raised $2,500 the first year, $6,500 the third year, and a whopping $18,200 this past summer. “My granddaughters and their friends do everything – they wait on people, serve food, sell the raffles, etc., while we make 100 lbs of Sloppy Joe’s.” The yearly prize for the raffle winner is a trip to Disneyland. Margaret and the rest of the family at Freer Auto Body ask 50 of their friends to sell 20 raffle tickets for $10 a piece in order to reach $10,000. Over the years, Freer Auto Body has raised over $36,000 in cash donations, toys and clothes for Community Christmas, which is one of the many reasons the Godfrey Women’s Club awarded the shop a Golden Leaf in 2011. “We are the most respected body shop in the community,” Margaret said. Please call United Way’s Southwest Illinois Division at 618-258-9800 or visit HelpingPeople.org for more information.

www.autobodynews.com

MO Shops See Increase in Business Following Icy Roads by John Harper, kspr.com

Following the sleet and ice on roads, body repair shops in the Ozarks saw an increase in business. “It doesn’t matter if you are 4 wheel drive or 2, front wheel drive or rear wheel drive, on ice there is pretty much no stopping that,” says body shop manager Jon Bea. He says driving on ice can be tricky. “They [drivers] don’t normally see the ice, the roads may look clear they may just look a little bit wet, ice can sneak up on you pretty quick and not everybody can stop in time,” says Bea. Bea says a Jeep Cherokee ran off the road and was brought to his shop for repairs and so was a Dodge Dart that he thinks hit a mail box due to the icy conditions. The body shop manager says with bad weather in the forecast, his shop can anticipate a spike in business. “Unfortunately everybody has wrecks here and there but we definitely don’t want to see anybody get hurt but we do like the business,” adds Bea.

Autobody News thanks Jonathan Harper and kspr.com for giving permission to reprint this article.

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Associations Look Back

tomer, and stick with that time.”

The Romans Group studies show: ■ Of the largest 68 MSOs, almost 28% are in the West, and almost 26% are in the Southeast ■ The Northeast has the lowest MSO representation (just 5.6%) ■ Of the largest 68, more than half (39) do business in only one state

The 68 MSOs with annual sales over $20 million: (The Romans Group) ● Processed 15.5% of the $31.4 billion in collision revenue (up from

14.7% the prior year) ● When combined with four largest franchise branded consolidators, they processed 19% of all collision revenue ● Had sales of about $4.9 billion in 2013 (up $400 million from 2012 ● Have annual average sales of $3.5 million per location ● The top 10 MSOs include four dealerowned and six independent MSOs

CCC information services answers the question, “Why aren’t MSOs adding DRPs as much as they did 20002009?” ■ As larger insurers gain market share, more claims are going through fewer DRPs ■ One major insurer replaced traditional

DRP by placing adjusters in shops, reducing many shops’ DRP counts by one ■ Some insurers are allowing more shops to write and upload an initial estimate even if not part of the insurer’s formal DRP program ■ During recession, drop in claims may have allowed insurers to process higher percentage of claims through staff appraisers rather than through DRP shops ■ Some of the “regional MSOs” with higher DRP counts may have expanded across state lines, shifting them into “national MSOs” and thus leading to reduction in the average DRP count for regional MSOs “I think DRPs have made body shops lazy,” said Anderson. “What happens

is once they’re certified by the DRPs, they stop worrying about servicing the customer, building that rapport, and marking their business, and then when things don’t work right and the DRP wants possession, the body shop gets all mad. At the end of the day, we need to take responsibility.” If you’re not happy with the way your shop is performing, Anderson says, “take responsibility – it’s not ‘we’ it’s ‘I;’ what can I do differently as a shop owner to impact my community and the industry?”

Chrysler And Fiat Names Dropped From Corporate Titles

Chrysler is Chrysler no more, according to a report in Automotive News. Fiat Chrysler Automobiles, the Netherlands-based parent company of what was Chrysler Group LLC, said that it has changed the name of its U.S. affiliate from Chrysler Group to FCA US LLC. The change is effective immediately. The parent company also said Italy’s Fiat Group Automobiles SpA has changed its name to FCA Italy SpA. The letter-only new name removes the name of Walter P. Chrysler from the company he founded in 1925 for the first time in its history. In a statement, the automaker said the name change “does not affect the company’s headquarters location in Auburn Hills, Michigan, its holdings, management team, board or brands.” The statement also noted that FCA US LLC “remains proud of its joint heritage” and that the company “continues to build upon the solid foundations first established by Walter P. Chrysler in 1925 as well as a rich Fiat heritage that dates from 1899.”

Nissan Settles Class-Action Suit Claiming Faulty Brakes

Nissan North America has agreed to reimburse customers between $20 and $800 each to resolve a lawsuit alleging that defects in certain vehicles caused brakes to fail suddenly, according to court papers. The settlement agreement, filed on Dec. 5, would affect current or former owners of approximately 350,000 vehicles nationwide. They include 2004-08 Nissan Armadas, Infiniti QX56s or certain Nissan Titans, according to the court papers filed with the U.S. District Court for the Northern District of California. If approved by U.S. District Judge Phyllis Hamilton, the settlement would resolve a 2011 lawsuit that claimed a problem with an electrical component would cause the brakes to fail without warning. www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 17

On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Commercial Customers—A Reliable Business Source with Thomas Franklin

Although there are still many more independent shops than franchise and multiple operator shops, many of the best DRPs and dealership deals often go to the well-funded group shops. This trend may increase, as vehicle manufacturers require expensive equipment, tooling and certification to work on their vehicles. To carve out a successful niche for an independent shop, in the past I’ve suggested a variety of options. One that I think gets too little attention is the commercial vehicle market. In the past I’ve assisted three different shops that at least partly specialized in commercial vehicles. One focused on government and police vehicles. Another put in an oversize frame machine and an expanded spray booth to accommodate slightly larger delivery trucks, and a third shop, a GM dealership shop, focused on companies with Chevrolet and GM business vehicles. All three enjoyed above average profits on their commercial business. When I inquired about the pros and cons of this business, I learned that many small businesses prefer not to place minor damage claims with their insurance companies. They’d rather self-pay the repairs. Also since small dents and dings were a regular occurrence with some companies, the shop would provide a monthly billing statement and enjoy a steady stream of income. The shop owner who provided much of its commercial business to the local police department, quickly learned that he would get more of that business if he also provided minor en-

gine maintenance, lubrication and brakes and times. One single dedicated bay sufficed for that business, which also turned out to be quite profitable. This added service also got him into other commercial accounts. Plunging into the world of commercial accounts requires a very different method of marketing from normal insured and dealership vehicle promotions. Marketing to this world is more similar to that of many other services. Since most areas have a multitude of small and medium business with anywhere from a couple of vehicles to an entire fleet (one pest control company had over 200 vehicles), building a database of prospects can be a first step. For example, lists of appliance repair companies, air conditioning and heating companies, plumbers, electricians, and handyman and painting service companies can be purchased from a list company or built from on-line listings. The following four steps might be one way to develop opportunities to meet with prospective commercial account principals. It assumes you have a competent phone solicitation person who can modify the script to fit the conversation as he or she goes along. 1. Exploratory phone call: Could I please speak to your (delivery) vehicle maintenance manager. (If not in) Can I leave a message? What is his/her name, please? May I also send a note? What is the exact spelling of his/her name? Do I have the correct address? (If none, get mailing address. (If provided by outside

Continued from Page 14

you’ll see that there is a wealth of great things for you to write about. Did your shop recently win an award? Are you gearing up to work on aluminum vehicles? In what ways are you a green shop? A blog will keep people coming back to your web site, because blogs provide new, relevant information and by posting at least 2-4 times every month, there is always something fresh and new for your customers to read.

Your To-Do Marketing List

days are long gone. Blogs are an ideal way to enhance your Search Engine Optimization (SEO) because Google indexes blog articles and will move your company’s name up the rankings by using a blog. It’s inexpensive to create a blog (using Word Press, for example) and linking it to your web site. There’s a lot going on at any busy shop, so ideas for articles are plentiful. Once you start looking around for blog article leads,

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ternate source? (IF not at this time) May I send you some information about our company? 3. Follow up the call by sending a letter and some literature. After a while, when you’re sure your letter has arrived, call again to see if he or she got it. Check again for an opportunity to perform some minor service to demonstrate what our shop can do -or to meet with the appropriate person. 4. Continue to send an update every month. Call again in a couple of months. Continue until they begin to respond positively and are willing to come in for at least a minor repair. Eventually this will work with many of them. Soliciting commercial business is very different from the usual collision repair marketing. Speed of repair is of the greatest importance. The company wants to get a disabled vehicle back on the road as soon as possible. If you can prove your shop can be the fastest, you’re likely to get the business.

source, ask for company that provides delivery vehicles) 2. To vehicle manager: Hello. I noticed that your company has company-owned vehicles. Do you do your own maintenance? (If so) Do you also repair damage to vehicle if they get in an accident or pick up minor dents or dings? (Usually they say NO) We would like to do some minor repair on one of your vehicles to show you the quality and speed of our work. (If large vehicles, indicate if we have an oversize frame machine and expanded spray booth to accommodate oversize vehicles). (If not doing their own maintenance) I assume, then, that you’re using an outside company to do your maintenance? (Usually YES) How many vehicles do you have? Would you consider an alternate outside service, if just for emergencies, when you need very fast service – or just to try an al-

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Continued from Cover

Four News Stories

no aluminum repair capabilities, that investment likely topped $50,000. Will that investment begin to pay off in 2015 for those shops and the 1,400 more independent shops Ford hopes to get certified this year? Just as Ford is rolling the dice to some degree in making such a significant change to its best-selling vehicle, shops too should probably be thinking long-term

about the investment needed to ramp up for aluminum repairs. One study predicts that even by the end of 2015, there may be only nine aluminum F150s a month needing repairs in most major markets. But other automakers are expected in 2015 to announce new aluminum vehicles coming. So while shops equipped to do aluminum work may see only a trickle of such work this year, they’re getting ready for what is likely more to come.

2. “(Shops are left in) the untenable position of either performing incomplete or substandard repairs and thus breaching their obligations to automotive owners to return vehicles to pre-accident condition, or performing labor and expending materials without proper compensation.” That’s the description used in almost 20 lawsuits filed by shops in 17 states in 2014, accusing insurance companies of conspiring to manipulate labor rates and other shop charges to reduce

Also Heard Around the Industry in 2014

“If they want to return a part, you need to tell them, ‘You bought this through PartsTrader; you need to return it through the system,’ so you get credit for the return. If they don’t want to return it through the system, then I hate to say it, but they are probably up to no good.” – PartsTrader’s Ken Weiss telling non-OEM parts distributors at a conference why the system will help vendors “avoid some of the games and will help bring down (parts) returns.” “We have most of the U.S. large cities or popu-

lation areas covered. We’re not targeting to be in all 50 states. We’ve got the vast majority of Americans covered for what we need to do from an insurance perspective.” – CARSTAR CEO David Byers on the company’s plans to work for growth in key markets (it now has about 440 franchises in 32 states) rather than specific states.

“We’re giving you guys a lot of instructions. Yet I could walk into three-quarters of shops in the country and they’re not doing it right.”

costs. The suits allege that State Farm is at the heart of an effort by the insurers to suppress labor rates, to coerce shops into accepting less than actual or market costs for materials, to refuse to pay for a list of required procedures, and to punish non-compliant shops through steering. The suits allege these actions constitute tortuous interference, unjust enrichment and violation of Sherman Act price-fixing and boycotting prohibitions. They seek un-

– Rick Leos of Toyota, expressing frustration with what he sees as the industry’s failure to use the OEM collision repair procedures that do exist. “The shop didn’t sell a rental coverage policy, and they didn’t profit from the sale of that policy.” – Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, on why it’s unfair for an insurer to expect a shop to pay the cost of a rental vehicle if cycle time for a job exceeds an unrealistic formula adopted by the insurer.

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specified damages for lost revenue and damages suffered by the shops, and treble damages and attorneys’ fees for the Sherman Act violations. They also seek an injunction prohibiting the insurers from “directing, advising or otherwise suggesting that any person or firm do business or refuse to do business” with any of the named shops; from using boycott, coercion or flat rate manuals to establish or control repair shop pricing; and from requiring the shops to participate in any parts procurement program. As 2014 came to an end, most of the lawsuits were being consolidated into one U.S. District Kris Mayer Court in Florida, a court whose first decision on them in 2015 could be whether to dismiss them or allow them to continue. If they are not dismissed, the judicial process could easily extend not only through 2015 but on into 2016.

3. “There’s probably some disruption and some unintended consequences in this process.”

Within 24 hours of surprising almost everybody by announcing in November that General Motors was discontinuing the publication of traditional list prices for crash parts, GM’s Kris Mayer had clearly heard a lot about those disruptions and unintended consequences. In less than a week, GM backed off a December 1 launch of the change, pushing it back into sometime in early 2015. As described by GM, the new system means that parts prices will no longer be available within the estimating systems. Instead, shops will need to upload all estimates requiring prices for GM parts to MyPriceLink, which will then return the estimate back with current, competitive prices. Mayer said the prices returned by the system will be dynamic, based on “the market or a particular price and its competition.” Mayer said GM does not intend to “change margin structure for the people who are involved.” What happens in 2015 may depend a little on what the real reason was for GM delaying the launch. Publicly, GM said that “workflow pressures on outside parties have brought to light enhanced solutions and the in-

creased desire for integration opportunities,” necessitating the delay. In a memo to its dealers, GM said it had “uncovered a system issue that could negatively impact the performance of MyPriceLink across a number of industry work streams.” Some sources have said a major technology partner working with GM on the system pulled out based on push-back it received from shops and insurers. Jason Bartanen In any case, whatever GM decides about launch of the system, it definitely will be among the major news stories in 2015.

4. “We really want to put this information into technician’s hands.” I-CAR’s Jason Bartanen said the goal of I-CAR’s “Repairability Technical

Support Portal,” launched back in August, is to get OEM repair procedures and vehicle information as close to technicians as the nearest computer, tablet or smartphone screen. The portal (http://rts.i-car.com) is a hybrid of both a guide to what procedures each automaker makes available (on their own websites) and increasingly a source for the actual procedures themselves. In late 2014, for example, the portal posted 51 collision repair instruction sheets from Ford for the new F-150. I-CAR promises to offer similar access to even more OEM information in 2015. The portal also enables a technician to submit an inquiry about OEM information he or she can’t locate, and the responses to those inquiries will be posted to the portal as well. That may make it an increasingly valuable resource in 2015 – and beyond.

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Continued from Cover

Associations Look Back

the conclusion of the OEM Collision Repair Technology Summit that we launched during the SEMA Show,” recalls Aaron Schulenburg, Executive Director of the Society of Collision Repair Specialists (SCRS). “This was a first year event that we spent the entire year working to develop content for. I love that our trade association produces events that can make our members feel inspired and empowered, and it is one of the very specific reasons that SCRS and SEMA partnered on our work together over 5 years ago. We saw opportunity for an industry that had everything to gain from good ideas being delivered in an environment that fostered creativity and business development. I never fail to be in awe of that ‘electricity’ that fills the halls and classrooms of the Show, and this particular day of focused discussion was memorable because it brought people together to focus on an issue that is important to all.” Schulenburg continues, “this session generated some remarkable responses from the attendees, as we took a good hard look at the defining responsibilities of collision repair businesses, automakers and equipment manufacturers as the room focused on a common issue relative to repairability of new technology found in the structural design of the modern vehicle. The topics from this new forum have spawned a whole new level of engagement from an industry hungry for more information. It has shone a light on areas that SCRS can help to encourage and promote relevant and much-needed industry discussion, and where we can provide insight into areas of curiosity. The work from this session has already fueled potential programs and offerings that we will launch during the year and that will inspire programs next year. What makes it memorable isn’t the event; it is watching the ideas flow in the postevent conversations and to see what was just a spark of imagination in our planning session turn into such a valuable resource that inspires so many others. For those that joined us this year, I hope it was equally as memorable for you. For those who couldn’t, I really hope you can next year!” In 2014, the National Auto Body Council (NABC) assisted in facilitating the donation of over 300 vehicles that

were restored by members of the collision repair industry and donated to families and military heroes in need of reliable transportation. “In speaking for the NABC, I’m proud to say that our organization, made up of dedicated members of our inter-industry, changed the lives of the recipients of those vehicles, forever, through the NABC’s Recycled Rides initiative,” states NABC President, Nick Notte. “ This activity was in direct support of the NABC’s vision, which states that ‘Automotive Collision Repairers are Admired Professionals.’ It absolutely supports the NABC’s mission to ‘Develop, implement and promote community-based initiatives which exemplify the professionalism and integrity of the Collision Repair Industry’.” Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), believes that the best thing the association did in 2014 was to “bring education style meetings to our membership, specifically by presenting topics with speakers to address industry concerns and ever-changing evolution. We strive to entice members to get away from their normal way of conducting business and experience new and different approaches to keep up with training, technology, and equipment.” For the Georgia Collision Industry Association (GCIA), “our most memorable achievement was raising money for a local technical school to help them educate the next generation of technicians,” according to GCIA Executive Director Howard Batchelor. “The average age of technicians is over 45 years, and we need a well-educated work force to work on the technically advanced vehicles of today.” John Petrarca, President of the Auto Body Association of Rhode Island (ABARI), says “in 2014, ABARI witnessed the positive effects of its hard fought legislation regarding the valuation of total losses that was passed in 2013. As the regulatory process concluded in 2014, consumers quickly began to see the benefits of the legislation, as insurers must now use the 75% repair cost/value threshold for every vehicle, or obtain the owner’s written consent to total the vehicle, thereby preventing insurers from unfairly declaring a consumer’s repairable vehicle a total loss, because it would cost less. The law also requires insurers to value total loss vehicles based upon either NADA or Kelley Blue Book when settling total loss claims. ABARI fought

22 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

hard at every step to prevent insurers from diluting the meaning and intent of the law at the regulatory level. We succeeded, and the law’s implementation has taken the guesswork and hassle out of the process and prevents insurers from using cost cutting programs to unfairly settle claims. The total loss legislation was an enormous win for consumers, and ABARI is very proud to be part of this victory, especially in Rhode Island where most residents are still struggling to crawl out of a very difficult economy.” For the Long Island Auto Body Repairmen’s Association (LIABRA), 2014 was filled with opportunities for growth and supporting their membership. Executive Director Ed Kizenberger recalls, “we had several memorable items worth mentioning in 2014. First is our merger with the Auto Body Craftsmen’s Guild of NYC. This merger will allow us to support and represent all of downstate New York. Our membership now spans from the East end of Long Island to the western end of Staten Island. Also, our parts procurement bill, which was one of the first of its kind in the USA, came quite close to being voted into law. We hope to see it come to its full potential in

2015. Lastly, our educational seminars were well attended and received good reviews from our membership.” “At ASA-Illinois, our best accomplishment was hiring Donna Kelly as our new Executive Director,” said Dave Walter, President and Chairman of ASA-IL’s Board. “That, along with Deb Bullwinkel staying on as Co-Executive Director, was the catalyst for our 15% growth on the Mechanical side. They were also instrumental in what many would say is our most significant accomplishment, opening ASA-Illinois to Collision members after almost 20 years. They did a great job this year, and we’re looking forward to more growth in 2015.” ASA-CO Board members got the chance to meet ASA-National’s Executive Director in 2014, and according to the affiliate chapter’s Executive Director Kari Foster, “meeting with Dan has been the highlight of ASA Colorado’s year. The work we do for the Collision members on the national level and in Washington is why many local members are a part of the Automotive Service Association of Colorado—and we are so proud to be a part of the national community.” See Associations Look Back, Page 30

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Industry Looks to Plant DNA to Solve Scrap Metal Theft Retribution for Scrap Metal Thieves Arrives from Overseas by Victoria Antonelli, Online Editor

The thievery of aluminum, copper, and other scrap metals continues to haunt all corners of the international auto industry, despite a steady decline in prices since its peak in 2008 (nearly $500 a ton). Michael Cavanaugh, owner of J&D Auto Salvage in West Warwick, RI, is all too familiar with scrap metal scandals. “We used to have a list on a pad, and we could pick and choose which cars we were going to get, and which ones we’d send to the town over. Our truck would always come back with three to four cars a day. It never came back empty,” said Cavanaugh. “Now, for the past year, year-and-a-half, we’re lucky if we get three to four cars a week. It’s slim pickins’ now that everything has been scrapped.” Cavanaugh blames unlicensed scrap metal yards for his decline in business. He said that he and his wife have contacted the Rhode Island Department of Business Regulation about the issue.

“I have emails going back to 2009,” said Cavanaugh. “The position that deals with these types of issues was left unfilled for 10 months, so the department said they would keep my complaints in a folder until they hired someone, but even when they did, I never heard back.”

Photo courtesy of Mitchell Miller, Director of Communications at Applied DNA Sciences in Stony Brook, NY

“I understand [Cavanaugh’s] frustration that there are unlicensed people out there. That’s why, give us more tips,” said Maria D’Alessandro – the Deputy Director of Securities, Commercial Licensing, and Racing and Athletics at the Rhode Island DBR – in an article written by wpri.com re-

porter Tim White. “We are acting on these tips.” Autobody News contacted the DBR for comment, but never heard back. Cavanaugh has noticed a change outside his auto salvage yard as well. “When you used to drive through a neighborhood, there would be junk cars in everyone’s yard,” he said. “Now there’s not a car to be found – your car breaks down on the side of the highway, after no more than a day somebody comes and grabs it for scrap.” Body shops have also felt the pain of scrap metal theft. Travis Dowling of Great Plains Auto Body in Nebraska said their shop on Emmet Street has been robbed three times. “The burglars sliced through cables, torched the key hole on one side of the building, and then cut the pad locks on the containers where the scrap metal is kept,” said Dowling. “Luckily, they stole the older scraps – aluminum hoods, containers and condensers – and not the newer ones that are worth more.” After the third break-in, Dowling contacted authorities, and the property

now has constant police surveillance after hours and on weekends. “It’s time-consuming and costly to have to replace the locks, chains, and make 12 new keys for the employees,” he added. Also in Nebraska, a man was arrested for stealing wheel rims from Ron’s Body Shop and scrap metal from Precise Fabrication and T.O. Haas Tired Company back in 2012. Rhory M. Ivy became a suspect after police found a receipt from Beatrice Scrap Processing Co. stating that he brought in 2,800 lbs of scrap metal, which is worth about $554, according to reports by the Beatrice Daily Sun. Authorities were then able to trace the scrap metal back to the three locations. At a body shop in Elizabeth, N.J., five male burglars tied up patrons and employees before pursuing catalytic converters and cash in April 2014. No injuries were reported, according to ABC Eyewitness News, New York. Unassuming vehicle owners have also experienced the aftershock of these crimes. Five catalytic converters

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were cut off of vehicles parked in Silver Lake, Los Angeles during a span of one week in June 2014, according to an article by eastsiderla.com. Police stated that on average, there is about one catalytic converter theft per week. A Silver Lake resident reported that his Honda Element sounded like a “jet engine” when he turned it on in the morning after parking in the street. Sure enough, the catalytic converter had been severed off. “Cat-Clamps” have become a popular solution, since most car alarms do not react to this type of intrusion because windows or doors are not being accessed. Another alternative to stopping scrap metal theft has “taken off” in the UK and other parts of Europe, and is making its way to America’s shores. Applied DNA Sciences, a biotech company in Stony Brook, NY, has found a way to synthesize plant DNA into, well, anything, and then track the object from there. “There are so many applications, it’s almost a problem,” said Tony Benson, managing director of ADNAS, who is based in London, England. “You dream it and it’s there, I don’t think we’ve found anything we can’t

apply it to, it’s that flexible.” The product, called SigNature DNA, has a complex characteristic, which allows for the endless possibilities. “The fluorophore within the product or liquid glows bright red under UV light, but cannot be seen at all under normal conditions,” said Benson. “Law enforcement is aware of

An example of the SigNature DNA in visible light vs. UV light. Photo courtesy of Mitchell Miller, Director of Communications at Applied DNA Sciences in Stony Brook, NY

this, so when they scan an item with a UV light and it turns red, they know it is one of our products and from there we can track where it came from and who stole it.” The product was initially developed to combat the rising number of armored car attacks in England. In 2006, there were 1,006 attacks on ar-

mored cars driving to and from banks with cash. The first deterrent – an ink spray that was released when the robber opened a cash box – didn’t stop them, according to Benson. “They would just wash the ink off the cash,” he said. “But once the plant DNA was synthesized into the cash boxes in 2008, attacks dropped by 75 percent – close to 100 criminals have been put away with a combined sentence of 500 years, thanks to DNA technology.” Today, car dealerships, body shops, insurers, vehicle manufactures, boat owners, electrical and railroad companies, and even homeowners in Europe use DNA technology to target scrap metal theft. “A car dealer can use the kit we sell on the interior of their car, like in the leather seats for example, or on the underbody,” added Benson. And the improvement is monumental. “We have seen an 85 percent reduction in crime in areas where we’ve applied the DNA to copper and other scrap metals,” said Benson. Benson feels that getting the word out about this product will help prevent crime from happening in the

first place, which is the ultimate goal. “Criminals understand DNA, they all watch CSI, and they know they’d be in trouble if they got caught with that, so it’s a fantastic deterrence.” Another popular product created by Applied DNA Sciences is SmokeCloak® DNA. “As soon as someone enters a building after hours, the fog triggers, and fills the whole place,” said Benson. “You can’t see your hand in front of you. It’s like you’re at a pop concert.” “I’ve experienced it − and you literally don’t know where you are – it’s like you’re in a plane upside down,” added Mitchell Miller, director of communications at ADNAS. The fog is filled with: you guessed it, DNA molecules that stick to the trespassers’ clothes, hair, and skin, and can fill warehouses that are 200,000 sq. ft. or bigger. “Europeans understand it and get what it does, and it’s starting to get traction in the US,” added Benson. “In fact, it could be bigger in the US − the main thing is, it works − people love it, insurers love it, car dealerships love it.”

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Lean Operations

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

Successful Change Using Modern Leadership with David Luehr

I have presented and written several articles recently where I have expressed my views on the new age of leadership. I have been openly critical about the outdated, Industrial Age leadership methods being used by leaders in many collision repair businesses. The reason I am so passionate about this subject is because it is at the very core of our continued success as a collision industry. The business leaders that first embrace modern leadership concepts will dominate the industry! Shop leaders continue to struggle implementing new systems for producing repair jobs faster and better. Lean systems are beginning to get a bad name. Technicians think that each new attempt at process change is just another “flavor of the month” and rarely if ever do they embrace the change initiatives. Why? I will give you my scaled down version of “why” containing two eye opening thoughts.

■ Why are you in business? ■ Why should the staff care?

Why are you in business? This seemingly simple question completely stumps a vast majority of my clients. Why do you do what you do? Is the reason you get out of bed every day just to keep the bills paid or is there a grander more noble purpose to why you are managing or owning a collision repair business? The sad fact is that many of my clients forgot why they started their business to begin with. The harsh realities of daily business has changed the original why from what was once a why of great joy and passion to what is now mere survival. Have we forgotten how to dream? I have nothing against consolidators, but in many cases, MSO consolidation feeds on the lost dreams of independent owners. Can you see the connection? I can see it, because I have lived it, and seen it firsthand. What does this have to do with influence and getting people to do what you want? How does this affect your attempts at lasting change? It has everything to do with it! Values and vision are at the very foundation of every great organization. If you

don’t know the “WHY” how are you going to have a guiding vision in the first place? First you must deeply think about your why. Think about the dreams you had when you first opened your body shop or when you first became the manager of a shop. Find that passionate person inside of you and bring him back! What does your business model look and feel like in your dreams? In your dreams, is your shop the one everyone wants to come to work at? Are DRPs lining up at your door because your reputation is so amazing? Are your customers raving fans because you and your employees treat them with a level of excellence rarely seen in the industry? Are you and your staff enjoying your time at work? Thoughts like those I have mentioned are a distant dream for many, but it is also a pleasant reality for business owners that are willing to continue fighting when slapped in the face by reality, doubt, and fear! Once you have figured out and written down your why, it is time to shout it out to the world! It becomes the fabric of your business, the culture, and then you can begin to share the vision of the why with your employees. Only after you understand this can the next step be addressed.

Why Should the Staff Care? Industrial aged thinking views employee satisfaction and motivation primarily as a product of the almighty dollar. In Daniel Pink’s book, DRIVE, he states “The best use of money as a motivator is to pay people enough to take the issue of money off the table.” Daniel then goes on to say, “But once we’ve cleared the table, carrots and sticks can achieve precisely the opposite of their intended aims.” So to paraphrase Pink’s thoughts, paying people what they are worth is critical to fulfill their basic needs of living, but beyond that, throwing money at problems in an attempt to solve them usually doesn’t work. I believe that many of us still use this technique mainly because we don’t understand modern leadership skills. In my recent article “The Wrong Bonus Plan Can be Worse than None

28 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

at All” (see Auto Body News August 2014) I go into depth on why this is so. “There will never be an incentive program that can make up for the lack of proper management and leadership!”

3 fundamental leadership steps I believe there are 3 fundamental leadership steps to getting your people to follow you and your change initiatives. Obviously there is a lot more to leadership and influence skills than what I am giving you today, but if you can get these 3 right, you are well on your way!

1. Learn how to communicate with people In order to get people to openly communicate with you, you need to learn how to talk to people correctly. Modern leadership involves creating a safe environment for people to speak freely with each other and leaders. Time

wisely spent just listening to your staff with your ego removed is huge to the development of a healthy change culture. Every shop has employees that mouth off and complain a lot, it is your job to find out what lies beneath the griping. Communication skills are paramount to all other leadership skills in my opinion and simply by being a better listener and making it safe for people to open up to you will make a huge difference over time.

2. Tie intrinsic values to key behaviors If you want to get your staff on board with your change initiatives, you must learn to tie your employees intrinsic values to key behaviors that will make your vision come to life! In other words, you have to know your people, what they value and think is important. Intrinsic value is another word for “what are you passionate about?” See Successful Change, Page 38

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The Hybrid Shop Carves a Niche in Hybrid Maintenance and Service by Stacey Phillips, Assistant Editor

With nearly 75 different hybrid vehicles currently on the road and more than 100 models expected to be in production by 2016, Matt Curry of The Hybrid Shop said education, training and technology are crucial for the expanding hybrid electric vehicle (HEV) industry. “There’s a pent up demand for hybrid and electric vehicles,” said Curry, the company’s Chief Visionary Officer. “In order to keep up with the future you need to be in the business.” Prior to launching The Hybrid Shop in 2013, Curry and his wife Judy owned Curry’s Auto Service in Northern Virginia since 1997. Over the years they expanded their auto repair business to include 10 shops. During this time Curry purchased eight Toyota Priuses to use as customer shuttles and learn more about hybrids. After talking to Dr. Mark Quarto, a PhD electrical engineer at GM for 28 years who specializes in alternative fuel and hybrid technology, Curry soon realized that HEVs were very different from traditional automotive design. Continued from Page 22

Associations Look Back

For many associations, no memories from 2014 can usurp memories of some of the events they hosted. Luz Rubio, Executive Director of ASA-AZ, cites the Phoenix Chapter’s Board retreat in August as being extremely memorable since it was the first time the retreat has been held in over a decade. Rubio states, “it was a great experience. All members contributed to the development of the plan for the year and agreed to reconvene in 2015.” For John Williams, Executive Vice President of the Independent Damage Appraisers Association (IADA), his most memorable association-related experience of 2014 was “the success of our 46th Vehicle Repair Conference in Baltimore, MD. Our conference was well attended, and speakers were outstanding; it was a great educational experience!” Similarly, “for the Texas Independent Automotive Association (TIAA), the most memorable event was the 2014 Texas Tire & Automotive EXPO. It was memorable because it was the first joint

The Currys sold their retail stores to Monro Muffler Brake in 2013 and opened The Hybrid Shop, which is headquartered in Gainesville, Virginia. Just one year later they have 39 franchises across the U.S. and are looking at further expansion nationwide and around the world. They recently attended the SEMA show in Las Vegas to continue to educate the industry about their business.

In addition to selling full franchises, the Hybrid Shop offers fractional franchises to those who own existing automotive repair and tire facilities and want to add a hybrid component. New owners and their technicians go through a four and a half day training session in Wisconsin. “We teach them how to diagnose, maintain and repair everything on a hybrid vehicle,” said Curry. The fran-

The Hybrid Shop team at their booth during SEMA: Jennifer Martin, Marketing Director; Dave Crawford, CEO; Matt Curry, Chief Visionary Officer; and Bob Curry, President

convention/EXPO of the Texas Tire Dealers and the Texas Automotive Collision/Repair organizations, and it was very successful. This first event set the stage for a great future alliance between the two industries,” says Chuck Space, Executive Director of the TIAA. ASA-Northwest also enjoyed a successful event in 2014 with their annual Automotive Training Expo (ATE) where Executive Director Jeff Lovell recounts, “we had over 900 attendees with 600 going through our training program; the Expo was sold out, and most of the training seminars were filled to capacity. Our first ATE had only 173 attendees going through the training, so it was a very special time for ASA-Northwest to see all of our efforts, which started seven years ago, come to fruition with such a successful ATE.” Overall, 2014 was a very productive year for the collision repair industry, and hopefully, 2015 will be even better, thanks to the efforts of these and many other associations. We look forward to continuing to provide you with all of the association news in 2015 also. Happy holidays! See you in 2015!

30 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

chise includes diagnostic tools, training, branding, marketing and sales support. “It is a comprehensive system that teaches them everything about hybrid vehicles.” Once a shop is operational, The Hybrid Shop profiles them on their website, which Curry said generates more than 300 leads a month to their dealer network. “We actively drive traffic into their stores,” said Curry. “We drive car count revenues and profits.” He said that while running his prior business they always prided themselves on their marketing and branding ability. “That’s what allowed us to grow from one store to 10 in 15 years.” Another main component of The Hybrid Shop is the battery conditioning that is offered to customers. Working closely with Chief Technical Officer Dr. Quarto, the AR&D team developed an exclusive technology only found at The Hybrid Shop that can restore a hybrid’s battery to over 95 percent of its original performance. Since hybrid batteries have a 100 percent failure rate, Curry said the only option available has been to replace the battery at an average cost of

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$4,000. “We can condition the battery for about a third of the price of battery replacement so it saves the customers thousands of dollars, it makes the repair shops thousands of dollars, and it’s better for the environment.” Curry said by conditioning the battery every four to five years or every 80,000 miles, it will keep the vehicle running at maximum efficiency, keep the gas mileage up and the performance of the vehicle working properly. “We are revolutionizing the Hybrid Electric Vehicle (HEV) industry by making repair and maintenance as cost-effective and eco-friendly as we possibly can,” said Curry. The Hybrid Shop received a 2014 Stevie People’s Choice Award for Favorite New Products and the 2014 Stevie American Business Award. On Nov. 19, the company announced that a Northern Virginia investment firm that manages approximately $4 billion in assets, has invested in The Hybrid Shop. Funds managed by the firm now own 38% of the company. “We are proud to announce this investment in The Hybrid Shop by a leading, multi-billion dollar firm,” said CEO Dave Crawford. “The fact that a

multi-billion dollar investment firm would want to invest in an early stage company serves as affirmation of our brand, business model and future potential as well as recognition of our success to-date in our ongoing efforts to achieve a position of innovation and fast-growth in the rapidly-evolving hybrid and electric space.” Dave Carney, owner of Hillside Auto Repair, purchased a fractional franchise in March as an addition to their shop. “I think it has provided the most amazing opportunities that I’ve seen in the 30 years that I have been in the industry,” he said. The Torrance, California-based company had limited industry training and didn’t feel they had enough knowledge about this growing industry. After sending five employees to The Hybrid Shop’s training, Carney said he could dispatch a hybrid to any one of them and they had the skill sets to be able to diagnose and work on it. “I’ve never seen such an energized, motivated employee in my entire life in 30 years of business as these employees came back from this hybrid training,” he said. “It was extensive. It was a lot of hands on and they came back and had a lot of confidence.”

Carney has found that business comes in spurts and the hybrids that need conditioning are the earlier ones on the road. He predicts that as the number of hybrids increases, they will be working on at least one per week, if not three or four. “What the Hybrid Shop did for us is it gave us the confidence to venture into this area of the unknown,” he said. “My expectation is that a year from now, once we get a little experience under our belt, we will be the knowledge base of everything hybrid in our community in Southern California.” Rich Hoffman, owner of Hoffman Tire Pros in Fayetteville, Georgia, purchased a franchise in June. With no prior knowledge of hybrids, Hoffman said that he saw great potential for hybrids in the future. “I like to stay on top of technology and I like to be ahead of the curve,” said Hoffman, who has owned his business for 38 years. “I did some research and felt like the hybrid was here to stay and the Hybrid Shop has the advantage that nobody else has.” Hoffman estimates that he currently does 35 percent tire work and 65 percent service at his eight-bay facility, which he can also use to work on hy-

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brids. He recently built a 10 foot by 20 foot “clean” room for the hybrid equipment and to service and condition the batteries. “Any service facility can do the job,” said Hoffman. “You just need to have, I feel, a separate place to work on it.” In addition to the training offered by The Hybrid Shop, Hoffman has learned a lot from staying in touch with other dealers in the network. The dealers recently met for a roundtable discussion during SEMA where they established a dealer advisory council. After hearing many wives’ tales about working on hybrids, Hoffman said, “The hybrid is not as difficult as it sounds as long as you have the training and knowledge and respect what you are working with.” “It’s an opportunity to differentiate yourself from the competition, Crawford. He said that with the mandated CAFÉ standards from the federal government, all new vehicle fleets must average 54.5 miles per gallon by 2025. “The traditional internal combustion engine as we know it today will not be able to meet this objective, which opens the door for hybrid technology. Fastforward 10 years from now and the hybrid business is going to be huge.”

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Historical Snapshot

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

CIC Says ‘No’ to ASA, Sheila Loftus Predicts, Multi Association Task Force, Labor Rates with John Yoswick

20 years ago in the collision repair industry (January 1995) Participants at the Collision Industry Conference (CIC) in San Diego in January voted to reject the Automotive Service Association’s offer to fund and administer future CIC meetings. While shop owners, suppliers and insurers at the meeting praised ASA’s offer, many also said they felt ASA’s resources could be put to better use. “I would like to commend the leadership of ASA for being willing to look at benevolent programs on the part of the industry,” Mitchell’s Ted Hill said. “But CIC has gotten where it has with its present (funding) method. If we change it, would we be cheating ourselves from some other opportunity that ASA’s funds could go toward to benefit the industry?” ASA’s offer was presented to CIC by Bob Anderson, an Ohio shop owner and director of the ASA’s Collision Division. The proposal stated that ASA would use profits from the National Autobody Congress and Exposition (NACE) to fund its administration of CIC, eliminating the need for CIC participants to pay a per-meeting fee or annual sponsorship fee. “It would be an open-door policy for anyone who would like to attend,” Anderson said. “Many times, ASA has been criticized by those saying, ‘NACE makes some money; why don’t you do something for the industry?’ That is our intent here today. This is not an attempt by ASA to take control of CIC. We are not asking for any special considerations from this group by making this proposal. Our motives are sincere. It is merely to provide financial assistance to the industry.” CIC participants voiced several concerns with ASA’s proposal, including the possible perception of CIC if administered by ASA. “I honestly would be surprised if at any point in time this group decided to have any other group administrate it,” Jeff Hendler, a past CIC chairman and current administrator of CIC, said. “I don’t think Mitchell would like it if ADP or CCC made this proposal. I don’t think Ford would like it, if General Motors made this proposal. I don’t think ASA would like it if the Washington Metropolitan Auto Body Asso-

ciation made the proposal. I think it’s – From an editorial in Hammer & ministration to direct repair shops. the most benevolent gesture I’ve heard Dolly by Sheila Loftus. Progressive in a long, long time. I’d just like to see has not owned body shops, but within 10 years ago in the collision repair the money funneled somewhere else.” two years of Loftus’ column, the insurer industry (January 2005) Anderson said ASA would be began piloting its “Concierge” service The three national collision repair assoopen to consider CIC proposciations have formed a “groundbreakals for use of ASA resources ing” joint taskforce as an off-shoot of and NACE profits. the Collision Industry Conference (CIC) to work on “macro issues related to the – As reported in Autobody way the [estimating] database compaNews. Now in its 31st year, CIC continues to be adminisnies operate.” tered by Hendler’s company. Although the Association of AutoASA’s profits from NACE motive Service Professionals (AASP), have presumably declined sigthe Automotive Service Association nificantly since its offer to CIC (ASA), and the Society of Collision Rein 1995. That year, NACE had pair Specialists (SCRS) pushed for for620 exhibiting companies and Bob Anderson presented the Automotive Service mation of the task force, the three 31,000 attendees; last year, Association’s 1995 offer to fund and administer the groups said it will be open to particiNACE had 6,500 attendees quarterly Collision Industry Conference (CIC) meetings, pants from other segments of the inan offer CIC declined and 180 exhibiting companies. dustry, including insurers. In announcing the proposal, SCRS centers. Allstate bought Sterling Collichairman Lou DiLisio said the tasksion Centers in 2001 and grew the chain 15 years ago in the collision repair until it sold it off last year. Virtually all force will not address concerns about a industry (January 2000) Now that we’ve seen one millennium auto insurers, however, have shifted specific labor time. Rather, the taskcome to a close, I’d like to have a crysforce will look at issues such as how significant portions of their claims adtal ball and be able to foresee what will happen in the next millennium. I’d ORIGINAL GM PARTS RTS FOR RA even settle for being able to see about to the next 10 years. Or 50. Or 10. FINISH I’m afraid, though, that I, like Call Any of These Wholesale Parts Dealers. most non-visionaries, will just have to see how things go. Even so, I’ll venture my own New Year’s list of predictions. Situation: The Baby Boomers are aging. The collision repair industry is already struggling to replace the Boomers in the workplace, and the search for good help will only get more difficult in this millennium. I’d like to see our industry actively embrace works we Michigan Ohio haven’t pursued in the past: women, minorities, non-English speakers. Alma Chevrolet Buick GMC Jake Sweeney Chevrolet Prediction: By 2005, women will ALMA CINCINNATI represent 10 percent of business own888-229-2336 513-782-2829 ers in the collision repair industry, and 989-463-0456 Fax 513-782-2846 Fax the majority of workers in the industry Mon.-Fri. 7:30-6 Mon.-Fri. 7:30-6 parts@almabuickgmc.com Sat. 8-Noon will be first- and second-generation www.jakesweeneychevy.com Americans. Situation: One collision repairer I Wisconsin know said he’d be happy to concentrate all his business on one insurer. So Ivan Gandrud Chevrolet in the future, will collision repair shops GREEN BAY be appropriated by insurance company 800-242-2844 claims departments? 920-468-3658 Prediction: In 2008, you’ll see 920-468-3673 Fax the opening of Progressive Body Mon.-Fri. 7-7; Sat. 7-2 parts@gandrud.com Shop. And in 2009, you’ll se the closing of Progressive Body Shop.

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large-scale changes are made to the estimating databases and introduced into the industry. The creation of the taskforce comes in the wake of the ADP October (2004) situation in which paint labor times for about 150 vehicles were reduced. Such time reductions, whether made in error or not, are typically found by users only through trial and error, DiLisio said. The new taskforce may work toward a disclosure system for such changes. “The ADP issue caused problems across the industry for insurers, repairers and consumers,” DiLisio said. “To try to stop that from happening again, we’d like to sit down with the information providers and figure out a better way to make sure there’s full disclosure of any changes that come forward.” – As reported in Autobody News. The taskforce was active for about five years, during which time it successfully pushed the estimating system providers to add more information to the systems about such things as what types of metals are used in various parts of particular vehicles. It was less successful in pressing for such changes as automation of operations such as “feather, prime and block.” “We’re disappointed

in the lack of progress with some of the issues we’ve brought to the table,” DiLisio said in April of 2010.

5 years ago in the collision repair industry (January 2010) The Rhode Island Supreme Court will hear arguments on February 9 in the legal battle over a 2006 state law mandating that every insurer (with more than 1 percent market share) in Rhode Island conduct a labor rate survey. A state agency had said that under the law such surveys can be just one of a number of factors an insurer uses to determine a prevailing rate. But the Auto Body Association of Rhode Island sued the agency, and a lower court ruled in 2008 that the survey results must be “the sole determinant of the prevailing auto body labor rate.” The agency appealed that decision to the state’s Supreme Court. – As reported in CRASH Network (www.CrashNetwork.com), January 4, 2010. The Rhode Island Supreme Court later that year overturned the lower court’s ruling, saying that while the labor rate surveys must be conducted, they don’t have to be the sole determinant used by insurers in the state to determine a prevailing labor rate in a market.

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New Alternative Fuel Vehicle Course Premiered by I-CAR, Both 1- and 2-Hr Offerings

I-CAR® has launched an all-new instructor-led course, Alternative Fuel Vehicle Damage Analysis and Safety (ALT03). This live, instructor-led, 3credit hour course improves a collision repair professional’s understanding of how to safely approach alternative fuel vehicles of all types after a collision and how to understand the risks and risk-avoidance of working around such vehicles. Online options for Alternative Fuel Vehicle Damage Analysis and Safety (ALT03) are also available, broken into two courses for learning effectiveness: Alternative Fuel Vehicle Damage Analysis (ALT04e), a 1-hour offering and Alternative Fuel Vehicle Safety (ALT05e), a 2-hour offering. Josh McFarlin, I-CAR Director of Curriculum & Product Development explained, “Each vehicle will require specific knowledge about the different risk avoidance elements engineered into these vehicles from a propulsion system perspective. This makes building knowledge on the different alternative fuel vehicle types extremely important,” McFarlin continued, “This course serves as a solution to building a knowledge base on hybrid, electric and advanced fossil fuel powertrain

systems such as propane, CNG and Diesel.” Each course dives deep into important information on safely repairing these vehicles after a collision and the common parts found on electric vehicles. They meet training requirements in ProLevel® 1 for Estimators, Auto Physical Damage Appraisers and Electrical/Mechanical Technicians in I-CAR’s Professional Development Program™ (PDP). The new courses have replaced Electric and Electric Hybrid Vehicles (ALT01/e) and Hybrid Electric and Alternative Fuel Vehicles (ALT02/e). Either the Live course or both online courses must be completed in order to receive credit. I-CAR is also debuting the new “Hybrid and Electric Vehicle Disable Search” on the I-CAR Repairability Technical Support (RTS) Portal. Through the Hybrid and Electric Vehicle Disable Search, professionals can more easily identify where parts of the hybrid or electric system are located, how to disable the system before beginning a repair, welding best practices and refinish precautions. All of this information can quickly be found by make, model and/or year. Visit: www.i-car.com/rts.

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Dropping Gas Prices and Strong Car Sales Could Create Manufacturer Problems by Jason Plautz, Nationaljournal.com

Plummeting gas prices have pushed car buyers away from smaller, greener cars and back into their traditional comfort zone: big SUVs and lightduty trucks. Amid robust sales last month, automakers saw consumers flock toward larger cars, while shunning traditional small cars. And although the strong sales are good news for carmakers right now, that could create problems later as the manufacturers work to meet tightening federal fuel economy standards. “It is a fact that sales of our most energy-efficient vehicles mirror gas prices,” said Gloria Bergquist, spokeswoman for the Auto Alliance, the lobbying arm for American carmakers. “When gas is more costly, sales of high-mileage vehicles rises too, and vice versa. While low energy prices offer good news for our customers, it makes the steep climb to [fuel economy] compliance even more challenging.” Thanks in part to dealers’ promotions and a rebounding economy, auto sales were strong in November, with Subaru and Chrysler both reporting 20 percent increases over the previous

month. General Motors, Honda, Toyota, and Volkswagen all saw gains as well, as the industry is on track to finish with annual sales higher than in 2013.

Photo credit: Scott Barbour/Getty Images

Those sales were largely driven by rebounding light-duty trucks and SUVs—the GMC truck brand was up 22.7 percent, the Jeep Cherokee rose 67 percent, and the Honda CR-V saw sales rise 38 percent. Toyota took a hit on its cars but stayed afloat thanks to increased sales of its 4Runner SUV (up 53.4 percent) and the Highlander crossover SUV (up 16.7 percent). The Washington Post has even anecdotally reported higher demand for the gas-guzzling Hummer on

used-car lots, years after General Motors killed off the massive car. Those sales increase as low gas prices make bulkier, heavier vehicles cheaper to drive: per-gallon prices dropped 23 cents in November and now sit at $2.76 a gallon, a four-year low, according to AAA. And that’s bad news for smaller cars. Toyota’s car sales overall were down 2.7 percent, the Ford Fusion fell 11 percent, the Nissan Altima fell 7 percent, and the Chevy Malibu lost 16.7 percent of sales. Even one of the flagship electric vehicles, Chevy’s plug-in hybrid Volt, saw sales drop to 1,336 units, a 30 percent dip from last month and a 16 percent decline compared to 2013 (some of that drop could be driven by consumers waiting for a new model to be released next year). The all-electric Nissan Leaf defied the odds and continued its strong performance—November sales of 2,687 were up 34 percent, and the model is on pace for its best year yet. “Consumers respond very quickly to the changes in the price of gas,” said

Michael Sivak of the University of Michigan’s Transportation Research Institute. “Specifically, when the price of gas goes down, so does their interest in fuel-efficient vehicles. This is especially the case if the change in the price of gas is rapid, as was the case this fall.” Those market forces could present some problems as automakers strive to meet tougher Corporate Average Fuel Economy standards. The Obama administration set a fleetwide 54.5 mile per gallon limit by model year 2025, and automakers must meet a 35.4 mpg target in model year 2016. Although the standards allow a footprint approach that will keep automakers in line if they make their light trucks cleaner, to hit the fleetwide average automakers are counting on sales of their smaller, greener, more fuel-efficient models. Autobody News thanks the author and nationaljournal.com for permission to reprint this story.

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Judge Grants Permanent Injunction Against Connecticut Anti-Steering Auto Glass Law

Jenna Reed, writing in Glassbytes, has reported that the lawsuit filed by Safelite Group and Safelite Solutions against Connecticut Attorney General George Jepsen and Thomas Leonardi, state insurance commissioner, over the state’s anti-steering law has reached a resolution. A Connecticut U.S. District Court judge has granted the parties’ joint motion for entry of final judgment, permanent injunction and stipulation of voluntary dismissal. “Plaintiffs and defendants have determined that their interests, and the interests of judicial economy would be served by the entry of a final judgment and permanent injunction with respect to section 38a354a(c)(2), joint waiver of all claims for attorneys’ fees or other costs or damages and voluntary dismissal of plaintiffs’ remaining claims …” attorneys write in their motion. “[N]o party shall assert, in this action or in any other or further action, any claim for monetary relief arising from the operation of 38a354a(c)(2), including but not limited to any claim for attorney’s fees, costs, expert fees or damages,” ac-

cording to the court document. An order granting the motion for judgment was signed by the judge. “Defendants, in their official capacities, their successors and all other persons in active or concert or participation with them are permanently enjoined from enforcing or attempting to enforce Section 38-354a(c)(2) of the Connecticut General Statutes,” the judge writes. “The parties have waived any right to appeal from this order,” she adds. The Second Circuit Court had ordered a preliminary injunction on First Amendment grounds that temporary halted enforcement of PA 1367—An Act Concerning Automotive Glass Work in September 2014. A permanent injunction has now gone into effect with the latest ruling by the U.S. District Court.

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Manheim Reports Wholesale Used Vehicle Price Adjustments in Q3

Wholesale used vehicle values declined by just over 2 percent in the third quarter, as the market showed signs of returning to more normal levels after historically high prices earlier in the year. The Manheim Used Vehicle Value Index, a measure of wholesale prices adjusted for mix, mileage and season, ended the third quarter at 121.4, a decline of 1.1 percent compared to a year ago, Manheim reported as it released the Index. After posting increases over the winter and early spring, used vehicle prices fell for five straight months through September. A boom in new car sales during the quarter resulted in more trade-ins and lease turn-ins in the quarter, which led to an increase in inventories and put downward pressure on prices. The price declines, however, took place as the market showed positive signs. Loan delinquencies and repossessions remained low. Certified pre-owned sales increased 20 percent in September, and showed a 10 percent rise year-to-date, as consumers evidenced strong demand for quality, late-model used vehicles. Lease penetration rates went up, a sign of satisfied customers. Dealers also closed out the quarter with higher retail unit sales in September, moving more vehicles as prices fell. “The decline in prices so far appears to be part of a healthy overall mar-

ket,” said Manheim Chief Economist Tom Webb. “Valuation adjustments enabled dealers not only to retail the large number of customer trade-ins and lease returns but also actively purchase from the growing supply of late-model vehicles available at auction. Dealers were able to turn their inventory more quickly because of the lower wholesale prices.” Third-quarter wholesale pricing for vehicle segments included: Compact Cars continued to be the weakest segment with prices ending the quarter down 3.4 percent compared to a year ago. Midsize Cars matched the overall market and experienced a 1.1 percent decline in values compared to a year ago. Luxury Cars fell 3 percent compared to a year ago. The multi-year decline in luxury cars appeared to be slowing in September. Pick-ups and Vans remained the strongest segment with prices up 6.5 percent for pick-ups and 1.5 percent for vans. Owners in this segment tend to hold onto their vehicles for longer than the average, keeping supplies tighter even as the overall market increases. SUV and CUV prices were down 1.5 percent to end the quarter compared to a year ago. Normally one of the stronger segments, SUV and CUV prices fell inline with the overall market.

PPG Redesigned Website for ADJUSTRITE

PPG Industries launched a redesigned website for the ADJUSTRITE® Commercial Estimating System at www.adjustrite.com. The site features a refreshed look, user-friendly navigation and new information about the AdjustRite and AdjustRite Plus collision repair estimating systems. The website focuses on the two applications and details and compares their individual features and benefits. They are specifically designed for the commercial truck market and have been updated to coincide with the launch of the website. “The new website makes AdjustRite easier than ever to use,” said John Lewis, Manager of Programs and Services for PPG’s commercial coatings group. “The database has been expanded, a variety of estimate solutions are available, and visitors can even sign up for a free trial to see which program best fits their requirements. We’re confident that our current customers will appreciate the site and system enhancements, and I think those just learning about AdjustRite will also be pleased.” While the AdjustRite system is updated regularly, enhancements introduced on the website include: ● online alternative parts solution with list prices for a variety of truck makes, models and parts;

● generic light-duty pickup truck database; and ● combined pricing solution that first checks for facility pricing, then checks for available global average pricing. The AdjustRite system is an estimating platform that uses truck model information, based on a database compiled from truck parts and repairs. It is suitable for insurance companies and claims adjusters, and also offers a claims management component. PPG said it is the first and only full-service application that takes into consideration the complete commercial truck claim process and the automated features of the systems reduce the time required to write an error-free professional repair estimate, eliminating the chance of miscalculation while improving overall cycle time and productivity. The AdjustRite estimating platform works on all Web-enabled computers, including mobile devices that meet system requirements. Estimates can be managed from the office, shop or in the field. The system is also EMScapable, enabling it to communicate with other shop management systems. It was developed by PPG’s commercial coatings group. For information, contact 800-647-6050 or visit www.ppgcommercialcoatings.com

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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 35

Website Connects Collision Shop Owners & Auto Techs: TalentMonger.com by Stacey Phillips, Assistant Editor

Finding and hiring new staff can often be a challenge for collision repair shops. Greg McVicker, a collision center manager in McMurray, Pennsylvania, recently launched TheTalentMonger.com website to help shops recruit employees based on their specific employment needs. “The whole premise of our site is that it’s proactive,” said McVicker. “You can go search for the person you are looking for versus spending the money to put an ad up and hoping that someone is going to respond to it.” Working at Budd Baer dealership and collision center in Washington, Pennsylvania since 2005, McVicker said one of their biggest challenges was to find qualified staff while their facility expanded. Established in 1975, they re-located in 2010 and added a two-story addition in 2014. “Through that time period I saw the same scenario play out over and over again where we tried to use traditional means of recruitment that are somewhat outdated for our industry,” he said. In addition to placing ads in the local classifieds and advertising on generic online recruitment sites, McVicker recalled spending nearly

$1,600 one week looking for technicians. After interviewing perspective employees who responded to the advertisements, he found that many didn’t have the necessary qualifications. Around that same time, McVicker became involved with the Alliance of Automotive Service Providers of Pennsylvania. He has been the local chapter President in Pittsburgh since 2008 and sat on the board of directors as the Collision Division Director of AASP-PA since 2012. Last year he began representing the association on the national board. As he was introduced to more and more shops, he noticed a recurring theme. “It became very clear to me that this wasn’t just an issue I was dealing with here in Pittsburgh,” said McVicker. “It was an issue that all over the country shops are struggling and trying to find and get connected with those people.” He said this led to the creation of the job search website. “That’s really the spirit with which TheTalentMonger.com came into existence,” said McVicker. “It was a way for us to eliminate the current recruiting process in the industry, save shop owners valuable time and money and get them connected with qualified techs.”

McVicker and his two partners, Erin Koen and Alan Shen, hired Impere Media in February to design the website. Seven months later it was launched nation-wide to the industry. Auto technicians are able to create a free profile highlighting their certifications, education and training. Owners and managers can also create a free profile for their shop, which allows them to search for potential employees who meet their specific criteria. Whether they are looking for a frame tech or a paint tech, when they are ready to contact a candidate, they can subscribe to the service to gain access to detailed information. As the site expands, McVicker said one of their goals is to reach out to the technical schools to give students a way to connect with the industry. Eventually, the plan is to give techs the option to relocate, which McVicker said would give shop owners access to a group of employees they might not otherwise have. They are also working with industry partners, such as SherwinWilliams, to help spread the word about the site. He encourages both job seekers and shop owners to check back regularly as TheTalentMonger.com continues to expand.

Mitchell Fourth Quarter 2014 Industry Trends Report Provides Insights for 2015

Mitchell, a leading provider of technology, connectivity and information solutions to the Property & Casualty (P&C) claims and Collision Repair industries, announced on Nov. 5 the availability of its Industry Trends Report (ITR) for the fourth quarter of 2014. The report compares year-overyear data to analyze the key areas of growth within the industry and help P&C insurers, bill reviewers, payers and auto body repair shops make better business decisions. The ITR is delivered in two editions to address timely concerns for the auto physical damage and casualty industries. In the Auto Physical Damage edition, vehicle repair speed remains a hotbutton industry topic because turnaround time is a priority for all parties involved. Within that process, bumper covers are the most commonly damaged part and the first point where an appraiser exercises judgment to repair or replace. In the report, Greg Horn, Vice President of Industry Relations at Mitchell, analyzes the labor hours devoted to repair a bumper and whether time varies by the make of the vehicle or if bumper price impacts repair time. According to Horn, the industry “should be devoting more hours to

bumper cover repair because it is a demonstrable win-win-win for the shop, the insurer and the vehicle owner. But the repair must be a quality, durable repair. It also suggests that whether you are an appraiser or collision technician, you need to keep up with the latest repair products and materials. When was the last time you looked?” In addition to this trends analysis, readers will find the latest data on average rental car time and used vehicle market conditions. Mitchell offered a webinar, Industry Trends Live, on the Auto Physical Damage edition of the report. During the webinar, Horn provided a deeper look into the trends, information and studies highlighted in this quarter’s ITR on Wednesday, November 12. First published in April 2001, Mitchell’s ITR now reaches more than 33,000 collision and casualty industry professionals and provides visibility into data-driven trends in the P&C market. The complete report is available at: www.mitchell.com/industry-trends-report. For further collision repair and property casualty industry updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.

36 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com

Sherwin-Williams “Media Center” Website Addition

Sherwin-Williams Automotive Finishes announced a new addition to its website – a Media Center. The Media Center can be accessed through the Fleet Refinish and Commercial Manufacturing portals of the website and will showcase the following features:

● Weekly Coating Maintenance Blog − Each week a blog will be posted detailing a topic related to the coatings industry. These posts will then be shared through the Sherwin-Williams Transportation Finishes social media accounts. ● Video Gallery − Provides easy access to all videos that are within the Sherwin-Williams Transportation Finishes YouTube Playlist. ● Product Flyers − All product information flyers related to the Genesis® and AIC™ product lines can be downloaded here. ● Case Studies − These profile articles highlight customer stories and in-depth research created by Sherwin-Williams. For direct access, visit: www.sherwin-automotive.com.

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Toyota’s “Game-Changing” Recommended Repair Procedures Set to Launch in 2015 by Victoria Antonelli, Online Editor

At the 2014 SEMA Show, Toyota Motor Sales, U.S.A., Inc. exhibited their updated collision repair estimating system, which can be accessed from every web browser on any device. Tens of thousands of collision industry professionals were introduced to Toyota Recommended Repair Procedures (TRRP)—a tool that provides repair specialists with instant access to all the information needed to restore vehicles to their pre-accident condition. In the first quarter of 2015, Toyota will begin their release of TRRP with coverage for 29 Toyota and Scion vehicles dating back to 2005. “This program is a game changer for the industry,” commented Rick Leos, Collision Program Developer, Toyota Motor Sales, U.S.A., Inc. “By offering a solution that provides Toyota repair procedures, parts and technical information in one place, we help the industry by establishing a standardized approach to repair planning. Collision repair specialists will benefit from decreased cycle times, reduced supplements and greater overall work efficiency. It’s a win for our customers, repair experts and insurance companies alike.”

Toyota has integrated with Mitchell Estimating, which will be the online platform for repair shops and insurance carriers. Although Toyota is the first and only OEM currently providing Recommended Repair Procedures, the estimating platform is capable of writing an estimate on any vehicle in Mitchell’s database, according to Kenny Crumpler, Product Manager at Mitchell International.

and sub-models.” Toyota’s template-based program reduces the preparation of a repair plan from hours to a couple minutes, saving collision repair specialists’ time, while increasing the level of efficiency and accuracy at the front end of the repair process. Repairers no longer need to start from a blank sheet of paper; they begin with a detailed repair plan, and omit what isn’t needed rather than adding each operation individually. Additionally, TRRP includes recommendations on parts that manufacturers designate as non-reusable or one-time use, which by definition means they must be replaced rather than reused. “When you have 1.8 million claims a year, a The new Toyota Recommended Repair Procedures featured 500-shop network isn’t going to able to make a big in a web-based platform enough footprint,” said “All these years we’ve relied on Leos. “Ninety percent of our cars are insurance companies to guide us on fixed by the independent repair shops cars, and now it’s time for the OEMs to − we owe them this data, so they can push their data down to the street level have the documentation to get the job to get our cars fixed,” said Leos. “With done correctly and, most importantly, the technology nowadays you got to safely, for our customers,” said Leos, a have all the information... there’s no 25-year collision veteran who has way you’re going to have technicians been developing Recommended Reable to specialize in 30 OEM models pair Procedures since he entered the

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industry. Toyota’s long-term vision is to offer other OEMs the opportunity to leverage this patent-pending template technology, consequently shifting the industry paradigm to one with greater transparency and better access to factory-recommended repair procedures. As a result, OEMs will achieve a significant impact in maintaining the safety of their vehicles through greater visibility of the parts and procedures required to complete the repairs. “I hope this is the beginning of something that will catch fire,” said Crumpler. On November 4, Leos and Crumpler decided that the new template will be integrated into the legacy system, which they hope will make the transition to an upgraded platform smoother. TRRP is currently being tested at Beta certified Toyota locations. In an effort to broaden the reach of this template technology, it is being licensed under the name “OEM Recommended Procedures” to OEMs and data providers in the U.S. and internationally. To learn more about TRRP, contact Rick Leos, Collision Program Developer, Toyota Motor Sales, U.S.A., Inc. at (310) 468-3111.

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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 37

Continued from Page 28

Successful Change

Once you get to know your people at a deeper level, you can have conversations with them about why such and such change initiative is important not only to the company, but also to them. To illustrate this, imagine speaking to your body tech about the importance of thorough disassembly and why it is critical to the success of blueprinting. This body tech is often negatively vocal about the quality of the estimates that are being produced at your shop, and commonly complains about all the delays it causes for him. This problem does create a financial impact for him, but what really ticks him off is that every time he gets started on a vehicle, he runs into a supplement or parts issue, and has to stop again. Too many leaders would write him off as a chronic

complainer and not act further on the matter. He values smooth continuous production and it is your job as a modern day leader to connect the dots for him as to specifically why the thorough disassembly will help eliminate his pain. You have then connected his intrinsic values (smooth continuous production) to key behaviors (thorough disassembly.)

3. Share the vision If you closely follow steps one and two and act with integrity while doing so, you will have built a foundation of trust and respect. This foundation may take months or maybe years to create, but it is this foundation that allows you to successfully share your why with your team. Your why, when connected to the intrinsic values of your people becomes a powerful culture. The vision of your why becomes the vision that your entire organization “lives.” You must paint this vision

every day, so don’t be afraid to yell it from the roof tops, talk about your vision in your morning meetings, live it! Just don’t make the mistake of acting contrary to your vision. If your vision is to produce the highest quality collision repair work in your city, you better not turn a blind eye to even one poor quality repair job. Every time you turn a blind eye on your why or your vision, you quickly lose respect, and your integrity suffers. Having created a culture where everyone understands the vision, change initiatives such as those used in lean methods become much easier to pull off. If for example you want to implement a new Blueprint program, you gather your people, you explain why Blueprinting is important to the company’s vision. You connect the behaviors necessary for successful Blueprinting (such as thorough disassembly) to their intrinsic values (smooth continuous production, or

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Enterprise’s ARMS Application Helps Shops Track Cycle Time and Benchmark Performance by Stacey Phillips, Assistant Editor

A website application developed by Enterprise Rent-A-Car 15 years ago has evolved to become an industry standard to help shops track their cycle time and benchmark their performance against others in the collision repair business. Enterprise’s Automated Rental Management System (ARMS) tracks length-ofrental (LOR) data, which Frank LaViola, Assistant VP of Collision Industry Relations, said can improve a shop’s performance by increasing operating efficiencies, enhancing customer service and streamlining communications with insurance companies and customers. With more than 13,000 users, ARMS was originally built in 1999 as a communication tool for auto body shops to report to Enterprise on the repair status of a vehicle. The information was then passed on to the insurance company. Prior to the introduction of ARMS, Enterprise would typically call the collision repair center for an update. “As the number of claims and customers in need of rental cars grew, it became more burdensome for the body shops and the insurance companies to manage the communication,” said LaViola. “When we launched ARMS, we were ahead of the time. Now, ARMS has become a mainstream tool for the majority of collision re-

pairers out there.” Enterprise began sharing LOR information with collision shops five years ago in response to requests from the industry. LaViola, who has worked at Enterprise since 1992, said they sat down with their business partners, individual collision repairers and MSOs and came up with a variety of ARMS reports. After tracking data for more than a year, they have found the cycle time is actually going up. The U.S. average length of replacement rental increased to 11 days in the third quarter of 2014, which was a slight increase over the average third quarter LOR for the last five years. “I think a lot of us would think it would be going down because there is more awareness,” said LaViola. He attributes the increase to several factors, including severe weather conditions. In addition, the number of shops in operation is declining, which he said has been an ongoing process. He said there were approximately 80,000 shops in the U.S. in 1980 and now there are about 34,000. The complexity of vehicles is also a big factor. “It isn’t like five years ago when you could just pound out a dent, and send a car on its way,” he said. “Now you’ve got sensors on vehicles that require you to only use so much paint. Too much paint can cause the sensors not to work because of

the mil thickness.” The free application can be integrated with over 20 body shop management systems, including Mitchell Repair Center, ProfitNet, Rome Management Software and Summit Software Solutions. LaViola estimated that 30 percent of shops currently have a management system that tracks cycle time. Although he said this is a great mechanism to measure productivity internally, the challenge has always been the interpretation of when the cycle time begins. “Three different shops using the same management system can actually have different interpretations of when cycle time starts and ends. Enterprise’s ARMS length-ofrental data helps give shops a more consistent measurement of cycle time.” Enterprise’s LOR has become such an important part of the industry, according to LaViola, because it’s based on the bill dates of the rental, which includes the open date of the rental contract to the last date they bill an insurance company. Using ARMS, shops are able to upload the date into their management system and it will automatically feed the repair status and estimated completion dates to Enterprise and the insurance company. They’ve received positive feedback from shops regarding the reporting, said LaViola. Not only has it decreased the phone calls made, it has also taken away a

lot of the double keying that is done. Chris Pohanka, VP of Operations for Pohanka Collision Centers of VA and MD, said ARMS has helped him shave off more than two days of cycle time. With 12 locations, Pohanka said they have been using ARMS since it was first introduced. “Currently, we utilize it to manage our cycle time by way of the LOR report,” he said. “With it, we can identify opportunities to reduce cycle time. We find it a tremendous tool.” He stressed how critical it is to have target dates entered correctly in the management system so it is seamlessly transferred into ARMS. “This gives a good indication of the forecasted cycle time and shows what vehicles and files are pending and which ones are closed,” he said. One of Enterprise’s goals is to input the year, make and model of the car into the ARMS application. Since luxury vehicles often take more time to fix than domestic vehicles, shops will be able to track cycle time based on their mix of vehicles. “You can’t improve what you don’t measure,” said LaViola. “When I show collision repair centers what their cycle time is, and they start evaluating their processes within the shop to reduce that cycle time, that’s when the homerun hits. That’s when they’re able to drive themselves to hit those numbers and achieve those goals.”

Web-Est and Crash-WriteR Announce Closing of Acquisition Agreement

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Web-Est, LLC and Crash-WriteR, Inc. jointly announced that the two companies closed an asset acquisition agreement. This agreement creates a “First-in-the-Space” national leader for the small- to mid-size independent collision repair shop market. The transaction will not, however, impact either company’s customer base nor their respective product offerings as they exist today. The combining of operational teams and resources is expected to create expanded, programmatic features that will translate into additional value for their customers. The combined companies will be operated under the newly created brand “Web-Est Global.” Once the transition is completed, Web-Est Global will continue to offer its core program, Web-Est Online Estimating platform, as well as “Crash-WriteR by Web-Est” as an offline/cloud product. By combining development teams, Web-Est and Crash-WriteR programmers will develop a new online estimating platform. This new platform will incorporate all of the most powerful features offered in both products and provide a more

powerful, mobile product designed specifically for the small to midsized, independent shops. Eric Seidel, Web-Est President and CEO commented, “We believe the new operation creates the single largest customer footprint serving the small to mid-size body shop market in North America for collision estimating products. We intend to leverage the economies of scale to build value for our customers and the small shop market as a whole.” Seidel continued, “The leadership at Crash-WriteR has demonstrated their commitment to their customers and product. This shows in their high level of customer loyalty; we are very excited to join forces.” “The Crash-writeR brand has a long-standing reputation for focusing on needs of the small independent shop; we see the same focus with the Web-Est brand,” stated Art Rezac, President and CEO of Crash-Writer. “Combining these two organizations will benefit both customer bases and serve as a launching pad for more value to this segment of the market,” Rezac continued. For more information, contact (888) 932-3780.

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