Northeastern April 2016 Issue by Autobody News

Northeastern Edition New York Delaware New Jersey Pennsylvania

Maryland Connecticut Rhode Island Massachusetts

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Maryland House Bill Center of Debate Over Use of OEM & Aftermarket Parts, Stakeholders Speak

Maryland House Bill 1258 would require insurance companies A controversial bill in Maryto pay for the use of car comland, addressing the type of pany-branded parts (OEM collision parts being used parts) for repairs made during during a repair, was presented the first two years after a veat a committee hearing March hicle’s date of manufacture. For vehicles older than two 10 in front of state delegates. years, the bill would limit reRepresentatives from the colFormer shop owner lision repair industry testified and current member pairs to either “certified” parts or original manufacturer parts. about whether to put restricof the Maryland tions on the use of OEM and House of Delegates, Regardless of the vehicle’s Rick Impallaria, aftermarket parts. This has manufacture date, an insured been a recurring debate in introduced HB 1258 motorist may consent in writMaryland, as well as across the United ing that he or she would like to use afStates. See MD HB 1248, Page 12 by Stacey Phillips, Assistant Editor

VA Photo-Appraisal Bill Passes with WMABA’s Input and Suggested Amendments, Update on PA Bill

See VA and PA Photo Bills, Page 20

P.O. BOX 1516, CARLSBAD, CA 92018

In January, VA Senate Bill 193 was presented to allow photos of collision damage to be used during the appraisal process, creating a stir among industry advocates who feared its passage could pose potential risks to consumers and collision repair professionals in VA. The Washington Metropolitan Auto Body Association (WMABA) quickly went to work to negotiate a compromise, and according to WMABA’s Executive Director Jordan Hendler, “The bill passed with our suggested amendments which was great.” The original wording in VA Sen-

ate Bill 193 did not seek to remove the requirement for vehicle appraisals to be based on physical inspections, but it would have permitted an initial appraisal based on photos to be used as the final appraisal. This provision caused Hendler and others to fear that consumers would cash out a claim without a physical inspection which could reduce the value of their vehicles since over 90% of VA estimates require a supplement. Because WMABA also saw potential benefits for consumers and shop owners from the proposed legislation, Hendler focused on refining the lan-

Change Service Requested

by Chasidy Rae Sisk

VOL. 7 ISSUE 1 APRIL 2016

Connecticut Senate Considers Shop Tax Legislation by ASA Staff

The Connecticut Joint Committee on Finance, Revenue and Bonding held a hearing on Senate Bill (SB) 335. If passed, this legislation would eliminate the sales and use tax on goods used exclusively in a business process. Specifically, SB 335 would correct a 1999 Department of Revenue Services ruling that has allowed taxation on paint and materials at the point-of-sale to shops, followed by shops then taxing customers for the same paint and materials. Speaking on behalf of the bill, Lisa Siembab, executive director of the Automotive Service Association of Connecticut (ASA-CT) said, “Collision repairers in the state of Connecticut have been unfairly penalized by an interpretation of the law that al-

lows paint and materials to be subject to double taxation. ASA-CT believes that the current law does not take into consideration the evolution of industry practices, and we think that SB 335 is a good first step toward lifting this unnecessary burden on small businesses and their customers.” In a letter of support submitted to the Committee, ASA also described how taxation of paint and materials is unfairly applied when shops purchase it, and again when they sell it. It also explained that today’s auto body repair business practices, related to the purchase of paint and materials, works to the advantage of vehicle owners or consumers and the environment, i.e. purchasing and mixing what is needed. To view the text of the legislation, please go to www.TakingTheHill.com.

NABR Launches New VRS Labor Rate Survey for Luxury Brands and Special Vehicles

National AutoBody Research (NABR) announced in March the launch of the new VRS Labor Rate Survey for Luxury Brands and Special Vehicles. Intended for collision repairers who work on highline vehicles and have luxury brand manufacturer certifications, the online survey is free and is accessible on the NABR website. Through the survey and its VRS technology, NABR measures and reports the market-based labor prices collision repairers charge for working on luxury brand vehicles, such as Audi, Bentley, Mercedes, or Tesla, for example, as well as special vehicles such as the new Ford F-150 or Nissan GT-R. “This new survey fills a large gap in collision repair pricing information and enables a new level of pricing sophistication for repairers,” said Sam Valenzuela, president of NABR. “Previously, there was no easy way for a repairer to know what competitive market labor rates were for working on luxury and special vehicles, or to know whether their price was above or below market.”

“The significance of this new survey and new pricing data cannot be overstated,” said Eric McKenzie, director of body shop operations for Park Place Dealerships, which includes Park Place Bodywerks in Dallas, TX. “This is a real breakthrough for the industry, helping us all understand market prices nationwide for repairing highline vehicles. Intuitively, shops know they cannot charge standard door rates for repairing these luxury brands, given the tremendous investment required to achieve those manufacturer certifications. Yet, it is not really clear what the market price is either, so this new VRS survey will shine light on that topic, to everyone’s benefit.” ds of dollars. Any collision repair owner or general manager may request a free, no-obligation demonstration of the VRS by contacting Sam Valenzuela, president, National AutoBody Research, 913-226-6550, Sam@National AutoBodyResearch.com. You can also visit www.National AutoBodyResearch.com for more information.

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

2 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - California Autobody Assn Goes to the Capitol for Legislative Day on April 12th . 30 Attanasio - California Veteran Body Shop Owner Returns to Serve CAA for the Seventh Time . . . . . . . . . . . . . . . . . . . . . . 72 Luehr - How to Hold People Accountable . . . 56 Phillips - Collision Shop Benefits from Improved Cycle Time, CSI and Closing Ratio After Joining CARSTAR Network . . . . . . . . . . . . 22 Phillips - NY Body Shop Owner’s Weekly Radio Show Aims to Educate and Entertain Customers. . . . . . . . . . . . . . . . . 14 Phillips - OH Auto Body Shop Benefits from Hiring & Training Students . . . . . . . . . . . . 50 Sisk - Why WIN? Webinar Explains Why Everyone Should Be a WINner . . . . . . . . . 34 Wickert - A Primer on Diminution in Value Claims . . . . . . . . . . . . . . . . . . . . . . 46 Yoswick - Mike Anderson in 1996, Incomplete Estimates, Feather Prime and Block, PartsTrader . . . . . . . . . . . . . . . . . . . . . . . 64 NATIONAL #1 Cochran Acquires Sixth Collision Center . . 6 2016 Digital Collision Repair Trends Report . . 66 2016 Second Quarter Training Schedule Announced by The Martin Senour Company . . . . . . . . . . . . . . . . . . . . . . . . . 79 AAA: Drivers Spend $3B on Pothole Expenses a Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 ABAC Releases “Now What?” App for Consumers . . . . . . . . . . . . . . . . . . . . . . . 10 AkzoNobel Reveals 2016 Distributor Council. 79 Alleged Admissions of ‘Price Fixing’ by State Farm and Progressive Employees Prompt New Filings in Multi-District Lawsuit . 44 Altra Products Supply, a Car-O-Liner Distributor, Celebrates 30-Year Milestone in Business . 70 Auto Body Shop Owner in Texas Restores Vehicle for Car Donation Using OEM Parts . 52 Auto Glass Academy Training Begins in April . 68 Axalta’s Custom Finishes Calendar Competition . . . . . . . . . . . . . . . . . . . . . . . 67 BASF Names N. America Distribution Director . 68 Best Practices Shared to Enhance Growth After CARSTAR Merger . . . . . . . . . . . . . . 29

BMW Ramping Up in Autonomous Vehicle Space. . . . . . . . . . . . . . . . . . . . . . 53 B-Tec Systems Releases The Infrared Handbook . . . . . . . . . . . . . . . . . . . . . . . . 42 Car-Part Announces World Tour Training ‘16. . 9 Complete Agenda Released for ASA Training in Philadelphia . . . . . . . . . . . . . . . . . . . . . 58 Cops: Auto body Shop Owner in PA Attacked Reporter. . . . . . . . . . . . . . . . . . . . . . . . . . 59 Facebook Contest for New Flooring at School . 42 Google’s Self-Driving Car Hits Bus: No Injuries, Team Expands, Google to Testify Before Congress . . . . . . . . . . . . . . . . . . . . . . . . . . 4 H&V Collision Centers Sponsors Easter Celebration for Albany NY Boys and Girls Club . . . . . . . . . . . . . . . . . . . . . . . . . 59 IL Bill Would Impose Storage Requirements . 68 Indiana ABA February Meetings Address Changes to FLSA . . . . . . . . . . . . . . . . . . . 76 Indiana Moves Forward on GM-Written Bill To Close Auto Sales Loophole, Sponsor: “Not About Tesla”. . . . . . . . . . . . . . . . . . . 73 Larson Electronics Releases Two New Products . . . . . . . . . . . . . . . . . . . . . . . . . 67 LKQ Hosts Charity Bike Build at 3-Day Summit . 54 Looking Outside of Industry for New Ideas Prompted Maaco Partnership With Pep Boys . . . . . . . . . . . . . . . . . . . . . . . . . 32 Maryland House Bill Center of Debate Over Use of OEM & Aftermarket Parts, Stakeholders Speak . . . . . . . . . . . . . . . . . . 1 Mercedes-Benz USA Reveals Plans for New HQ in GA . . . . . . . . . . . . . . . . . . . . . 47 Mirka USA Introduces Aquastar® Abrasive . . 53 NABR Launches New VRS Labor Rate Survey for Luxury Brands and Special Vehicles . . . 1 NACE | CARS 2016 Registration is now OPEN . 54 Nviro-Tech Launches Paint Facts Displays. . . 73 PDA Extends Expertise to Financial Services Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Portacool Introduces New Jetstream™ Coolers . . . . . . . . . . . . . . . . . . . . . . . . . . 53 PPG’s Charley Hutton Delivers Another Ridler Award-Winning Finish . . . . . . . . . . . . . . . 24 Pro Spot Display at 2016 I-CAR Instructor Conference . . . . . . . . . . . . . . . . . . . . . . . 56 RDA Collision Solutions Training Seminar in TX . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Recent Poll Finds Tie Between Car Driven and Presidential Candidate Supported. . . . 50 Rotary Lift Introduces Video Series. . . . . . . . 73 Santa Rosa, CA-based G&C Auto Body Doubles Shops and Sales in Five Years . . . 60 SEMA and Auto Care Association Partner on Industry Job Board . . . . . . . . . . . . . . . 76 Senate Passes Aftermarket Parts Legislation in NH . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Service King Launches Revitalized Website. . 76 Sherwin-Williams Automotive Finishes 2016 Second Quarter Training Schedule . . . . . . 70 The Body Shop of the Future . . . . . . . . . . . . 36 Tsunami Compressed Air Solutions Launches The Rove . . . . . . . . . . . . . . . . . . . . . . . . . 58 WIN Announces 2016 Educational Conference Content and Celebration of 10th Anniversary . . . . . . . . . . . . . . . . . . . . . . . 35 YANG Hosting Inaugural Legislative Conference. 9

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales/Research Associate: Cass Heckel Art Director: Rodolfo Garcia

Indexof Advertisers

REGIONAL ASA-CT Workshop with Mike Cassata. . . . . . . 8 Auto Shop Owner Handcuffs, Zip-Ties Break in Suspect in RI. . . . . . . . . . . . . . . . . . . . . 29 CEI Awarded I-CAR Gold Status for Appraisal . . 6 Connecticut Senate Considers Shop Tax Legislation . . . . . . . . . . . . . . . . . . . . . . . . . 1 Glenn Cecala, 58, Passes Away on Staten Island . 10 LKQ to Acquire Pittsburgh Glass Works . . . . . 8 Maaco Laurel in MD Earns Super Service Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 New MD Legislation Will Honor Crash Victim and Work to Speed up Repair and Recalls . 26 Police Say MD’er Charged With Stealing Scrap Metal . . . . . . . . . . . . . . . . . . . . . . . . 9 Sisk - ABAC's Quarterly Meeting Features Multiple Guest Speakers . . . . . . . . . . . . . . 18 VA Photo Bill Passes with WMABA’s Suggested Amendments, Update on PA Bill . . . . . . . . . 1

The AASP-NJ sponsored NORTHEAST trade show occurs just after we go to press this month. Look for coverage in our May issue.

Abaris Training Resources, Inc. . . . 22 Acura of Westchester . . . . . . . . . . . 44 Amato Agency . . . . . . . . . . . . . . . . 54 Atlantic Hyundai . . . . . . . . . . . . . . . 59 Audi Wholesale Parts Dealers . . . . 69 Axalta Coating Systems . . . . . . . . . . 2 Bald Hill Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 38 Baystate Chrysler-Jeep-DodgeRam . . . . . . . . . . . . . . . . . . . . . . . 14 Bergey’s Wholesale Parts . . . . . . . . 21 BMW Wholesale Parts Dealers . 62-63 Bonding Solutions . . . . . . . . . . . . . 25 Cadillac of Mahwah . . . . . . . . . . . . 67 Car-Part.com . . . . . . . . . . . . . . . . . . . 6 CarcoonAmerica Airflow Systems. . 46 Central Avenue Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . 32 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 45 Cherry Hill Audi . . . . . . . . . . . . . . . . 26 Cherry Hill Porsche . . . . . . . . . . . . . 26 Cherry Hill Volkswagen. . . . . . . . . . 26 Chief Automotive. . . . . . . . . . . . . . . 11 Classifieds. . . . . . . . . . . . . . . . . . . . 78 Clay Auto Group . . . . . . . . . . . . . . . 55 Colours, Inc. . . . . . . . . . . . . . . . . . . . 8 Dent Fix Equipment . . . . . . . . . . . . 31 Dent Magic Tools . . . . . . . . . . . . . . . 6 Ditschman/Flemington Auto Group . . . . . . . . . . . . . . . . . . . . . 33 Dominion Sure Seal, Ltd. . . . . . . . . 15 Eco Repair Systems of North America, LLC . . . . . . . . . . 35 Empire Auto Parts . . . . . . . . . . . . . . 30 Equalizer Industries, Inc . . . . . . . . . 48 FBS Distribution Co., Inc. . . . . . . . . 10 Fitzgerald’s Lakeforest HyundaiSubaru. . . . . . . . . . . . . . . . . . . . . 66 Ford Wholesale Parts Dealers . . . . 56 Fred Beans Parts . . . . . . . . . . . 37, 80 Fuccillo Kia of Schenectady . . . . . . 61 Gary Rome Hyundai-Kia . . . . . . . . . 50 GM Wholesale Parts Dealers . . . . . 75 Herkules Equipment Corporation. . 24 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 40-41 Hyundai Wholesale Parts Dealers . . 72 Infiniti of Norwood. . . . . . . . . . . . . . 58

Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts 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. ©2016 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Northeast

Contents

Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 71 Koeppel VW-Mazda . . . . . . . . . . . . 52 Kool Tools - SEMA 2015 Product Review . . . . . . . . . . . . . . . . . . 16-17 Larson Electronics, LLC.. . . . . . . . . 12 Lexus Wholesale Parts Dealers . . . 76 Long Automotive Group . . . . . . . . . 47 Maxon Hyundai. . . . . . . . . . . . . . . . 34 Maxon Mazda . . . . . . . . . . . . . . . . . 42 Mazda Wholesale Parts Dealers . . . 79 Mercedes-Benz of Atlantic City. . . . 13 Mercedes-Benz of Fort Washington . . . . . . . . . . . . . . . . . 13 Mercedes-Benz of West Chester . . 13 Mercedes-Benz of Wilmington . . . . 53 Mercedes-Benz Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 68 MINI Wholesale Parts Dealers . . . . 60 Miracle System/Equipment Gateway, Inc. . . . . . . . . . . . . . . . . 9 Mitsubishi Wholesale Parts Dealer . 74 MOPAR Wholesale Parts Dealers . . 43 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 68 Orio . . . . . . . . . . . . . . . . . . . . . . . . . 20 Polyvance . . . . . . . . . . . . . . . . . . . . 28 Porsche Wholesale Parts Dealers . . 73 Providence Lacquer & Supply Centre . . . . . . . . . . . . . . . . . . . . . 36 SATA Spray Equipment . . . . . . . . . 19 Security Dodge-Chrysler-Jeep-Ram . 7 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . . . . 23 Subaru of Morristown . . . . . . . . . . . 39 Subaru Wholesale Parts Dealers . . 77 Tasca Automotive Group . . . . . . . . 49 Thompson Organization . . . . . . . . . 57 Toyota of Morristown . . . . . . . . . . . 39 Toyota Wholesale Parts Dealers . . . 64 Valspar Automotive . . . . . . . . . . . . . . 5 VIP Honda . . . . . . . . . . . . . . . . . . . . 29 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 65 Volvo Wholesale Parts Dealers . . . . 70 Wagner Auto Group . . . . . . . . . . . . 51 Wesch Tools . . . . . . . . . . . . . . . . . . 18 Westbury Jeep-Chrysler-DodgeRam-SRT. . . . . . . . . . . . . . . . . . . 27

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 3

Google’s Self-Driving Car Hits Bus: No Injuries, Team Expands, Google to Testify Before Congress

One of Google’s self-driving cars has collided with a public bus in Mountain View, CA, an accident report has revealed, in what appears to be the first instance of one of the company’s prototype cars causing an accident. The collision between the self-driving vehicle and a city bus was apparently caused by a software error on the part of the vehicle. The car pulled into the bus’ lane assuming that the bus was going to yield, but it didn’t. The collision happened on Feb. 14. Footage recorded by cameras on the bus shows a Lexus SUV, which Google has outfitted with sensors and cameras that let it drive itself, edging into the path of the bus that was rolling by at about 15 mph. Though it was a low-speed collision, the impact crumpled the Lexus’ front left side, flattened the tire and tore off the radar Google installed to help the SUV perceive its surroundings. The Lexus had to be towed. Neither the Google employee in the driver’s seat—who must be there under California law to take the wheel in an emergency—nor the 16 people on the bus were injured. The transit agency has concluded based on the footage that the bus driver was not responsible, spokeswoman Stacey Hendler Ross said. An independent claims adjustor has not yet determined liability, she said. El Camino Real is a busy six-lane boulevard with hundreds of intersections. The car was following a recent change to its programming, following “the spirit of the road” as well as the traffic code by hugging the far side of the right-turn lane to allow other cars to pass on the left. Images from the bus show two small, black sandbags on either side of a drain at the curb. The right lane was wide enough to let some cars turn and others go straight, but to avoid driving over the sandbags, the Lexus needed to slide to its left within the lane. The bus and several other cars that drove straight were to the left of the Lexus, in the same lane. When the light turned green, several cars ahead of the bus passed the SUV. Google has said that both the car’s software and the person in the driver’s seat thought the bus would let the Lexus into the flow of traffic. The Google employee did not try to intervene before the crash. “This is a classic example of the negotiation that’s a normal part of driving—we’re all trying to predict each other’s movements. In this case, we clearly bear some responsibility, because if our car hadn’t moved there wouldn’t have been a collision,” Google wrote of the incident, adding,

“That said, our test driver believed the bus was going to slow or stop to allow us to merge into the traffic, and that there would be sufficient space to do that.” The software that controls the cars is programmed to follow all traffic laws and to drive conservatively, the company said. The law-abiding algorithms that rule the SUV’s onboard computer make its decision to try and slip in front of the bus surprising. Footage from a forward-facing camera on the bus shows there was not much more than a full car length between the bus and the GMC Yukon in front of it. Google said it has tweaked its software to “more deeply understand that buses and other large vehicles are less likely to yield to us than other types of vehicles.” The DMV said that manufacturers of autonomous vehicles must report crashes, but “the DMV is not responsible for determining fault.” A spokesman for the U.S. National Highway Traffic Safety Administration declined to comment. The company also said it has reviewed this incident “and thousands of variations on it in our simulator in detail and made refinements to our software. From now on, our cars will more deeply understand that buses (and other large vehicles) are less likely to yield to us than other types of vehicles, and we hope to handle situations like this more gracefully in the future.” The Feb. 14 crash is the first in which Google has acknowledged its car made a mistake that led to a collision. The company has reported that between September 2014 and November, its prototypes drove themselves about 400,000 miles on city streets near its Silicon Valley headquarters without causing a collision. Its fleet has likely driven an additional 100,000 miles since then, though the company won’t be specific. According to Google’s accounting, its cars have been hit nearly a dozen times on the streets in or around its Mountain View headquarters since road testing began in spring 2014.

Google Expands Self-Driver Team Google’s self-driving car team is expanding and hiring more people with automotive industry expertise, underscoring the company’s determination to move the division past the experimental stage. The operation now employs at least 170 workers, according to a Reuters review of online profiles. Google has advertised nearly 40 new positions on the team, and many are related to manufacturing. The team

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Bus Fails to Yield.

currently has six people with such experience, including purchasing, supplier development and supply chain management. Google has said previously that it intends to ready the technology for a marketable self-driving car by 2020, but it may never manufacture vehicles itself. Analysts say self-driving technology has several profit channels including licensing mapping database and vehicle control software, as well as an integrated package of software, sensors and actuators that would form the backbone of a self-driving vehicle. Google to Testify Before Congress The director of the Google X self-driving car project, Chris Urmson, and other auto industry executives will testify before Congress the week of March 13 on efforts to develop safe and effective autonomous cars. Senator John Thune, who chairs the Senate Commerce Committee, said that Chris Urmson would appear on March 15. Urmson will testify alongside executives from General Motors Co (Mike Abelson), Delphi Automotive PLC and Joseph Okpaku, VP of privately held ride-hailing service Lyft

Inc., to talk about “advancements in autonomous vehicle technology and its anticipated benefits for Americans,” the committee said. The director of Duke U’s Humans and Automony Lab, Mary Louise Cummings, will also testify.

The committee wants witnesses’ views “on the appropriate role of government in promoting innovation including removing unnecessary hurdles, and their strategy to grow consumer adoption of this new technology.” Major automakers and technology companies are racing to develop and sell vehicles that can drive themselves, but they have complained that state and federal safety rules are impeding testing and ultimate deployment of such vehicles. In January, NHTSA said it may waive some vehicle safety rules to allow more driverless cars to operate on U.S. roads as part of a broader effort to speed up development of self-driving vehicles. Safety regulators will write guidelines for self-driving cars within six months, Transporation Secretary Anthony Foxx said in January.

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 5

Maaco Laurel in MD Earns Super Service Award Maaco Laurel, in Laurel, MD, has earned the service industry’s coveted Angie’s List Super Service Award, reflecting an exemplary year of service provided to members of the local services marketplace and consumer review site in 2015. “We are humbled to be recognized by Angie’s List with the 2015 Super Service Award,” said Mike Frost, owner of Maaco Laurel. “This is an honor that will be shared by our entire staff. It’s a great feeling seeing a customer leave our shop happy. That means we did a good job. We know that if we do quality work and keep our customers informed, there will be a lot of smiling faces walking through our door. Only about 5 percent of the auto painting centers in Laurel, MD have performed so consistently well enough to earn our Super Service Award,” said Angie’s List Founder Angie Hicks. “It’s a really high standard.” Angie’s List Super Service Award 2015 winners include an “A” rating in overall grade, recent grade, and review period grade; the company must be in good standing with Angie’s List, pass a background check and abide by Angie’s List operational guidelines.

CEI Awarded I-CAR Gold Status for Appraisal

CEI—a fleet driver management company—has earned Gold Class designation for excellence in automobile collision repair appraisal expertise from I-CAR. I-CAR’s Gold Class status is the highest role-relevant training achievement recognized by the collision repair industry, and has been awarded to only 10% of the industry's repair shops. CEI provides accident repair management services to automotive fleets all across North America. The I-CAR designation was earned by CEI's Quality Control Department, lead by Greg Neuman, which consists of 15 licensed physical damage appraisers who review every repair estimate for savings on parts, labor and ensuring that the repair is safe and meets industry standards. To earn Gold Status, appraisers must take courses in the latest repair techniques and pass a rigorous series of tests. The courses cover every aspect of collision repair, including repairs on hybrid vehicles, advanced materials like aluminum and highstrength steel, safety restraint systems, electrical damage, refinishing , identifying loss recovery potential, and assessing and repairing damage due to hail, theft and vandalism.

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#1 Cochran Acquires Sixth Collision Center

#1 Cochran, one of Western Pennsylvania’s leading automotive retailers and a fast growing collision repair provider, announced that it has acquired Mignogna Collision in Greensburg, PA, 35 miles east of Pittsburgh. The acquisition boosts #1 Cochran’s collision operations to six and marks the company’s first entry into the Westmoreland County market. The 30,000-square-foot facility will continue to operate as Mignogna Collision until a rebranding occurs later this year. Founder Patsy Mignogna will remain actively involved in the business and nearly all of the company’s 25 employees are joining #1 Cochran. “We are extremely proud to welcome Mignogna Collision to the #1 Cochran collision repair network,” said Rob Cochran, president and CEO of #1 Cochran. “The company’s decades-long reputation for exceptional service fits perfectly with our mission to provide unequalled collision care to vehicle owners and insurance partners throughout the region.” Mignogna built the 30-year-old business from a two-bay garage to the current 30-bay, full-service facil-

ity, said his decision to sell the company hinged upon finding a partner who shared his commitment to bestin-class customer service and unparalleled automotive repair. “#1 Cochran is widely known for delivering the highest standards of quality and care to customers in every community it serves,” said Mignogna. “Equally important, it is driven by a culture of integrity, values and standards that matches our own.” The acquisition comes on the heels of an announcement last month that #1 Cochran received approval from Cranberry Township to convert a former copper and brass fabrication facility into its first collision operation located in Butler County. Renovation of the former ThyssenKrupp Materials plant will begin this spring and is expected to be completed in the fall. “The addition of Mignogna Collision, together with the green light we received to begin renovation on our first repair facility in Butler County, gives us even more opportunity to demonstrate why we’re the provider of choice for collision repair in every market we serve,” said Cochran.

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 7

ASA-CT Workshop with Mike Cassata by Chasidy Rae Sisk

On the evening of Thursday, February 18, the ASA-CT held a dinner workshop for members at the Hilton Garden Inn in Milford, CT. Lisa Siembab, Executive Director of ASA-CT, saID it was “standing room only - great attendance!”

Mike Cassata reminded shop owners that nothing happens without the customer

The workshop, “Building a Culture of Outstanding Customer Service,” was taught by Hammer Insights’ Mike Cassata who recently retired from Amica Insurance after 16 years of being responsible for all automotive physical damage activity in the West, Midwest and Southern regions. Cassata explains, “Customer service is the act of taking care of your customer’s needs by providing and delivering professional, helpful high-quality advice and assistance before, during and after

LKQ to Acquire Pittsburgh Glass Works LKQ Corporation announced on February 29 that it has signed a definitive agreement to acquire Pittsburgh Glass Works LLC from private equity firm Kohlberg & Company LLC and PPG Industries, Inc. for an enterprise value of $635 million. PGW is a global distributor and manufacturer of automotive glass products. PGW’s business comprises wholesale and retail distribution services, automotive glass manufacturing, and retailer alliance partnerships. PGW operates 120 distribution branches serving over 7,000 automotive glass retailer shops across North America. In addition, PGW operates 12 automotive glass fabrication facilities in North America, Europe and China. The transaction is expected to be completed in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals. “We are excited to be partnering with PGW, and look forward to working with the existing core management team at PGW to continue to invest in and grow its business while continuing the high quality service to all its customers. PGW reflects LKQ’s commitment to provide a one-

the repair process. The first order of business is to get your head around the fact that nothing happens without the customer. Once you do that, you’re on your way!” Workshop topics included the evolution of your relationship with each customer, how CSI drives every other KPI in the collision repair industry and

ASA-CT members came out in droves to learn about building an outstanding customer service culture in their shops

Net Promoter Scores and how they apply to your business. Cassata also explained how to discover the soft skills of customer service and how to turn a negative situation into a positive. Lastly, attendees learned how to identify internal customers and why they are important. In other news, ASA-CT announced that Siembab has been asked to serve on the newly formed Career Technology Advisory Committee for the CT Technical High School system.

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stop-shop solution to the North American collision repair industry by adding automotive glass to our product offerings. PGW is the largest pure-play provider in the $3.5 billion North American automotive glass market. This acquisition will expand our addressable market in North America and globally, and simultaneously offers tremendous distribution synergy opportunities with our existing network,” stated Robert L. Wagman, president and CEO of LKQ Corporation. Jim Wiggins, chairman and CEO, Pittsburgh Glass Works, LLC commented, “PGW transformed itself into a strong global competitor of automotive glass and enjoyed tremendous market and financial success under the stewardship of Kohlberg and PPG. We are excited to become part of the LKQ family, and expect that the company will continue on its growth and success trajectory under LKQ.” PGW’s revenue for the 12 months ended October 31, 2015 was approximately $1.07 billion, and LKQ expects the transaction to be accretive to its earnings in 2016. These projected results exclude restructuring and acquisition related expenses.

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Car-Part Announces World Tour Training 2016

After seven years of conferences, Car-Part is offering a new twist on training. The Car-Part World Tour is bringing training classes to cities throughout North America in 2016. On March 12, the training program made its way from Canada to the U.S. Janice Schroder, vice president of marketing, said, “Recyclers have asked us to bring our training closer to them, and we are happy to accommodate their requests.” Training is interactive and hands-on at a computer, and facilitated by Car-Part product experts. Topics included Car-Part Pro, CarPart mobile apps, Images, Core Pricing and sales, CrashLink, Bidmate for buying, Checkmate Sales Pro Boot Camp, Partmate for inventory and assemblies, Car-Part Interchange Plus, Brokering, eBay through Checkmate, Reports, and more. The Car-Part World Tour kicked off in Burnaby, British Columbia, on February 19-20, in cooperation with the Automotive Retailers Association (ARA-BC) at their facility. Next scheduled was Raleigh, North Carolina, on March 12, following the Carolina Auto Recyclers Training and Conference.

This fall in Baltimore, Maryland, Car-Part will provide four hours of training during the Automotive Recyclers Association Annual Convention on Saturday, October 29. Even more stops will be added to the schedule in the coming weeks. Mike Swift, president of the Automotive Recyclers Association, said, “Recyclers need to get back to the basics. They already spent money on their management systems, now they need to invest in knowledge and training to increase their return on investment.” If your association (or you as an individual recycler) would like training in your area, contact CarPart to discuss coordinating a CarPart World Tour stop. For more information and to register for a Car-Part World Tour stop near you, visit www.Products .Car-Part.com/worldtour or call 859344-1925.

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Autobody News

Police Say MD’er Charged With Stealing Scrap Metal

On February 9, officers from the Anne Arundel County Police Department responded to a theft report at the European Auto Body Shop located at 8201 Ritchie Hwy, Pasadena, MD. The victim advised that $7,000 worth of metal, wire, and engine parts were stolen from his business. The victim supplied surveillance footage of the suspect committing the theft. Based on the video and further investigation, the suspect was identified as Adam James Ziemski, a 32-year-old from the 8100 block of Solley Rd., Pasadena, MD. On February 12, detectives from the Metal Theft Unit with assistance from Eastern District Patrol Shift 2 executed a search warrant at 8149 Solley Rd. in Pasadena. Detectives were unable to locate any of the stolen property, but they seized clothing and documents related to the crime, as well as CDS paraphernalia. While interviewing Ziemski at Eastern District, detectives discovered additional information of Ziemski scrapping the stolen property at a scrap yard in Baltimore City, and receiving $58 in return. Ziemski was charged for theft over $1,000, trespassing, fourth degrees burglary, and CDS paraphernalia possession.

YANG Hosting Inaugural Legislative Conference

The Young Auto Care Network Group (YANG) of the Auto Care Association is hosting the first-ever YANG Legislative Conference, June 13-14, 2016 in Washington, D.C. The YANG Legislative Conference will provide an opportunity for young auto care professionals to learn about the auto care industry’s most pressing issues and meet face-to-face with members of Congress on Capitol Hill. Attendees will receive an issue briefing and coaching on the afternoon of Monday, June 13, followed by a reception and dinner. A full day of meetings with elected officials will be held on Tuesday, June 14. “Some of the best advocates for educating legislators on the impact of laws and regulations on our respective businesses are our newest leaders in the auto care industry,” said Bill Hanvey, president and CEO, Auto Care Association. “Given the increasing enthusiasm surrounding this industry’s future, combined with the association’s desire to offer more political advocacy opportunities for our members, the 2016 YANG Legislative Conference is a must-attend event.” Contact Courtney Hammer at courtney .hammer@autocare.org.

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ABA Connecticut Releases “Now What?” App for Consumers For over 50 years, the Auto Body Association of Connecticut (ABAC) has been dedicated to protecting consumer safety. In February 2016, they took their mission a step farther by releasing the “Now What?” app which coaches consumers through the proper steps to take after a car accident. Tony Ferraiolo, President of ABAC, noted, “Our app is free, easy to use and assists consumers by navigating easily through what would normally be a stressful and hectic process. Our app provides consumers with the convenience of having a guide readily available to lead them through the process of documenting the accident.” Downloading ABAC’s “Now What?” app enables consumers to gather information, take photos, hare the report with others (including their collision repair facility), find an ABAC shop in their area, and file a complaint with the Department of Insurance. One app function advises the consumer to obtain needed information from the other driver, including their name and numbers, insurance company and policy number, as well as the car year, make and model. All this information can be entered and stored within the app or sent to themselves, another person or body shop.

Photos can also be attached through the app. The app’s homepage allows the consumer to call 911, learn about their rights, file an insurance complaint, locate an ABAC shop, read about the as-

sociation or access its YouTube channel. Choosing “File an Insurance Complaint” will direct the user to the Connecticut Insurance Department’s website where they can upload photos and attach them to the complaint they submit electronically. The “Know Your Rights” feature includes comprehensive advice about

10 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

what to do after an automotive accident, covering everything from what to do at the scene, how to handle injuries and what to know about legal representation. This information was compiled by the Law Offices of Buckley & Wynne for their booklet, “Auto Accident Rights and Responsibilities.” By clicking “Find an ABAC Shop,” the consumer will be directed to an interactive map showing nearby member shops as well as contact information and a link to the shop’s website. Ferraiolo stated, “The steps and resources provided give consumers confidence knowing their accident was properly documented, ensuring the repair process goes smoothly. Our app also provides the body shop with information needed to help customers file the insurance claim. Not only does our app provide a checklist for customers. It also provides valuable information and resources informing them of their rights and responsibilities. We encourage CT shops to invite customers to download the app and utilize the great features provided!” ABAC’s “Now What?” app is available for download at www.aba conn.org by clicking the “get the app” tab.

Glenn Cecala, 58, Passes Away on Staten Island

Longtime Staten Islander Glenn Cecala, 58, of Todt Hill, an auto body business owner and hardworking family man, died Feb. 20 in Staten Island University Hospital, Ocean Breeze, according to reports by the Staten Island Advance. Born in Manhattan, he moved with family to Dongan Hills and graduated from New Dorp High School. Mr. Cecala earned his bachelor’s degree in business accounting from the College of Staten Island, Willowbrook. Glenn Cecala, circa He operated Ed2000. Family photo kins Auto Body before founding and operating Preferred Auto Body, Stapleton, for the past 25 years. He was working up to the the time of his death. Mr. Cecala enjoyed cars, and was an avid hockey fan, rooting for the New York Rangers. He was primarily concerned for the well-being of his family and making sure those he loved were all right, family said. He also enjoyed being an uncle to his many nieces and nephews. “He was easygoing and funloving, and he had a good sense of humor,” said his son, Joseph. “He also was kind and caring, and tried to help people any way he could.”

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 11

cases, are forced to pay the difference. the use of aftermarket parts while supIn my 18 years in the business as a posedly protecting consumers,” said technician, and as a shop owner, I can Hoover. “It doesn’t really benefit the tell you that the parts are not equivacitizens of Maryland as I see it. This termarket crash parts or non-certified lent; they are not the same.” bill limits consumer choice, inflates aftermarket crash parts. Gillis spoke during the hearing consumer costs and is unnecessary Rick Impallaria from the Mary- on behalf of CAPA “…to testify in and will result in increased economic land House of Delegates introduced favor of HB 1248 to protect Maryland burden on Maryland consumers.” the bill—Motor Vehicle Liabiity In- consumers from both overpriced parts He said that aftermarket parts are surance—Replacement Parts for and poor quality repair parts.” safe and added that the National HighDamaged Motor Vehicles—on FebruThrough a consensusway Traffic Safety Adminisary 12. He used metaphors like the based technical committee tration (NHTSA) has not now familiar Rolex watch and coffee involving manufacturers, colfound an increase in safety spills on white shirts to make the lision repairers, parts distribissues with the use of afterpoint: “The quality of what you get is utors and insurers, Gillis said market crash parts listed in important,” said Impallaria during the CAPA develops objective the bill. hearing. “It really matters with the standards to test which afterColas is with LKQ govGovernment Affairs quality of the project you are working market parts are functionally Representative for ernment affairs. “We feel that on and what the public expects to get equivalent to the car comcurrent law does provide conLKQ, Ray Colas, objected to the bill. back.” pany parts they replace. sumer choice,” he said during File photo Those who spoke in favor of HB “The overarching probthe hearing. 1248 during the hearing included: lem facing Maryland consumers is the “They [collision repairers] are in Jordan Hendler, executive director cost of getting our cars repaired,” said business today because we enable of the Washington Metropolitan Auto Gillis. “In addition to the need for them to repair their vehicle. In terms Body Association (WMABA); Mark competitively-priced parts, there is the of total loss calculation, we keep veSchaech Jr., president of WMABA; concern about repairing cars with poor hicles on the road; we allow them to Jack Gillis, executive director of the quality parts. By defining a program repair vehicles. If we were not here to Certified Automotive Parts that identifies parts that are provide that type of service, you Association (CAPA); and functionally equivalent to the would have more total loss vehicles Travis Martz, director of car company brand parts, HB and they would not be able to repair government & industry af1258 complements the conthose vehicles and that’s why they are fairs for the Maryland Autosumer protections inherent in our customers today.” mobile Dealers Association. competition with protection As the executive director from poor quality parts.” of WMABA, Hendler said Executive Director Martz also spoke in favor she represents 1,000 inde- of the Washington of HB 1258, on behalf of the pendently-owned businesses Metropolitan Auto Maryland Automobile DealBody Association in Maryland. “We enjoy in ers Association, which repreMaryland one of the lowest (WMABA), Jordan sents 300 franchise owners. Hendler. File photo costs of repair there is in this Those who testified against country and this, in our opinion, is just the proposed state law included Bruce a measure to protect the consumers Bereano, a Maryland lobbyist, Jim [and] give them the best opportunity of Lohan and Marcel Hoover of LKQ the right parts being put back on their and Ray Colas with LKQ government vehicle,” said Hendler. “If there were affairs. to be an effect in insurance premiums, Strongly opposed to the legislathere are many insurance companies tion, Bereano spoke on behalf of currently with this practice in place and LKQ-Keystone. “This is not a bill to we feel that it’s morally obligating to protect the consumer,” said Bereano. the remainder of the insurance compa“This is not a bill for disclosure to the nies to do the same thing.” consumer. It certainly is not a bill for Schaech, president of WMABA, competition. It is a bill for a two-year runs a family-owned collision center in monopoly.” Baltimore. The 40-year-old business is Lohan, who represents 186 emcertified by 14 manufacturers. “When I ployees in Maryland and has 50 drivhave a customer come through the ers delivering aftermarket parts on a door, generally, regardless of the age of daily basis, said he is strongly opthe vehicle, an insurance company usuposed to the bill. ally only reimburses for aftermarket Hoover runs the LKQ facility in parts,” said Schaech. “Those aftermarFrederick, Maryland and also opposes ket parts are usually the cheapest afterthe bill. He said for over 30 years they market parts available so if a customer have offered consumers and busiis in a lease, which in our facility is 40 nesses a reputable and economical alpercent of the time, they are required to ternative to expensive OEM parts. use genuine OEM parts, and in those “It unfairly discriminates against Continued from Cover

MD HB 1248

12 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

The Automotive Body Parts Association (ABPA) has denounced and expressed concern over the proposed legislation. “Senate Bill 1258 is only good for car companies, giving them a virtual monopoly on parts for the first two years of the vehicle’s life,” said ABPA Executive Director Edward Salamy. “We also have concern about the limits this bill places on a consumer’s desire to use alternative parts and how this would affect them financially.” Based on the language of the bill, ABPA said that the proposed legislation could potentially exclude NSF certified parts. ABPA said it believes this would further limit choice in the marketplace by eliminating a large portion of the certified parts inventory. Jim Smith, president of ABPA, added, “This bill is being sponsored by industry special interest groups that are pushing their own agenda and are not concerned about the general welfare of the consumers. If this anti-competitive legislation is passed, insurance premiums will be in jeopardy of being raised and more vehicles will be totaled by insurance adjustors because the cost of See MD HB 1248, Page 24

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Shop Strategies with Stacey Phillips - ASSISTANT EDITOR

NY Body Shop Owner’s Weekly Radio Show Aims to Educate and Entertain Customers Nick Orso’s Body Shop and Service enforcement. We talk about school bus safety and DWI (driving-while-intoxiCenter in Syracuse, New York will celebrate their 62nd anniversary cated) awareness. We have won awards for our participaon April 15. Autobody News spoke to Mike Orso, the tion and effort to promote owner of the shop, about the highway safety, and stop radio show he has run for the DWI programs, the “Move past five years and his recent Over Law” campaign, workinvolvement as president of zone safety, texting and agthe NYS Auto Collision Techgressive driving risks. Mike Orso, owner nicians Association. Orso also We have business people of Nick Orso’s that want to talk about their own’s Nick’s Garage, Inc. Body Shop and Service Center commitment to consumers and What prompted you to and president of NY best business practices. We begin recording the State Auto Collision have an insurance agent, acciTechnicians Nick Orso radio show and dent attorneys, political candiAssociation can you tell us about the topdates, law enforcement, NYS ics you cover? State Police, county Sheriff’s departments, police departments, the district atWe felt we had more to say and torney’s office, doctors and health care the 60-second radio spots we professionals and officials, highway were doing needed to tell the rest of safety experts, restaurants and delis, inthe story, to be more effective. vestment bankers, home builders, funeral We have guests from all areas of directors, tire dealers, service garages, business and legal, political and law damage appraisers, senators and assem-

Q: A:

14 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

blymen, college sport coaches, coast guard, travel agents, and heating and air conditioning. March 5th marked our 257th show.

What type of advertising do Q: you focus on and what are the main benefits you have found?

Wreck Check Post Repair Inspections, an in-house 40 car-truck-SUV rental fleet, in-house council, advertising, radio shows, 100-car capacity, and NO DRP conflicts of interest.

We do consumer-based informational commercials. Most A: people know we can repair a damaged

car and our commitment to repair integrity. What they don’t know is their rights after a claim. AND that’s what we tell them. Help is available.

What are the primary areas of Q: focus at your shop and what environmental initiatives have you

taken?

Our resume includes a list of A: eight manufacturer-sponsored certifications. Our services include:

Nick Orso’s collision repair shop is located in Syracuse, New York and was established in 1954

In addition to using waterborne paint, LED lighting and a modulating air system, we completed one of the largest installations of solar power electrical-producing panels in Central New York in 2011. We are Syracuse’s only solar-powered body shop. We get

80 percent of our electrical energy from the sun. There are 280 solar panels on our roof. We are the most environmentally-friendly body repair shop in upstate NY. We received a New York State Assembly Citation from the legislature in November 2012 for our efforts in clean energy as the largest private solar installation in the Syracuse area.

Can you update us on the $3 Q: million lawsuits that were filed in 2012 against insurance companies

they do not know the intricacies of automobiles or have accidents often enough to be experienced. We do it so that we can repair the vehicle to the best of human ability while settling the cost of repairs efficiently – IF the insurance company involved is inclined to negotiate and settle the claims.

citing capping and short pays?

I am at liberty to say: A: Most of the suits were “resolved.” There are a few? that are still in

litigation. We now use in-house council that handles the day-to-day collections and interacts to negotiate and settle repair costs on claims.

What is the assignment process Q: you use to collect short pays? We take assignments from consumers who authorize us to act A: on their behalf to negotiate a repair

settlement. Most consumers are illequipped to handle repair claims since

In 2012, Orso received a New York State Assembly Citation from the legislature for “unparalleled work ethic.” Orso was recognized for his shop’s accomplishments, which included the installation of solar panels in 2011 (l to r) Assemblyman Bill Magnarelli, Mike Orso and Assemblyman Sam Roberts

Some companies, however, will not negotiate and use a take-it or leaveit offer. Those cases are typically handled by our attorney. We explain to our customers that some of the companies are not acting in the consumers’ best interest. We then have been putting our

in·teg·ri·ty:

customers in touch with independent agents who sell insurance for companies we know will settle claims and treat customers fairly. We average four to five customers a week? who are changing companies, dropping the companies that typically will not settle claims fairly-promptly or that show any anti-consumer tendency. We constantly hear that they save money, get more insurance coverage and it’s from companies that will settle claims fairly. I think it sends a message consumers will not stand for behavior that gives them less than they had prior to the loss.

What is the importance of Q: being part of an association and what is your current involvement with the NY State Auto Collision Technicians Association?

This is my 16th year as president of the NYS Auto Collision Technicians Association. I feel the most important part is the sharing of information and experience. The cohesiveness of a committed group of individuals is much stronger than a single person trying to do it alone. During our annual Lobby Day, we

visit the NY State Capital, legislators, NYS Insurance and Financial Department and the NY Attorney Generals office. We keep them apprised and invested in our efforts to best serve consumers.

Is there anything else you Q: would like to share with readers?

We have found that being comA: placent and accepting whatever is offered has no reward. Most of the

drive-in estimates we see are 100 to 1,000 percent below what it takes to properly repair a vehicle. We have thousands of loyal customers built from over 60 years of collision industry knowledge and experience. We are a tough competitor.

The Nick Orso Radio Show plays Saturdays on 105.9 FM from 9 to 10 a.m. EST. It streams live during show times at http://www.therebelrocks.com/thenick-orso-show/ Mike Orso can be reached at 315471-8521. For information about Nick Orso’s Body Shop and Service Center, visit nickorso.com, and on Facebook and Twitter.

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Northeast Associations with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

ABAC’s Quarterly Meeting Features Multiple Guest Speakers The Auto Body Association of Con- whether you are building a business necticut (ABAC) held its Quarterly worth selling, and if so, how to maxiMembership Meeting on March 8 at mize the valuation of your business. the Country House Restaurant, featurHanding out guides for business owning several industry speakers includ- ers, Tye discussed solutions for ading Gene Tye of Corporate Business dressing owners’ common concerns Solutions, John Parese of Buckley & about valuing the worth of their busiWynne, and Superare Marketing’s ness and maximizing that value. Tony Lombardozzi and Peter AbNext, Bill Romaniello, ABAC’s delmaseh. Attendance hit near record- Legislative Director, read the Anti-Trust breaking levels, and ABAC President Disclaimer, encouraging attendees to be Tony Ferraiolo stated, “Many attentive to the evening’s “dyassociations thrive when their namic and helpful” presentamembers passionately support tions. The group then indulged their organization, and the in dinner before Ferraiolo inABAC is certainly setting the troduced ABAC Legal Counstandard for organizational sel John Parese of Buckley & support with the massive shoWynne who was the evening’s wing of current members and primary sponsor. Parese began Gene Tye members-to-be at our recent by quipping, “I am here tomeeting. Over 150 attendees came out night in a different capacity than usual. to see what the ABAC has been offerTonight, I’m here as a sponsor. Unlike ing with its educational and informamost times when I speak, I’m hoping tional seminars. Members and guests that you’re not all asleep!” certainly weren’t disappointed as the Parese encouraged attendees to speakers offered training, education call his firm if they, their employees and solutions to many of today’s most or customers need a personal injury challenging problems in the collision lawyer. He stated, “We are a relatively repair industry.” small boutique injury firm. Every case Ferraiolo thanked attendees for is handled personally by a partner. We supporting the association and exdon’t just get you in, cycle you to a pressed gratitude to sponsors. Ferraiolo paralegal, and forget about you—we announced that he and ABAC would don’t operate like that. We take great be attending a hearing on March 9 at pride in providing a high quality of the Legislative Office Building to tesservice to every client. That level of tify that double taxation is not fair. “I quality, I believe, is what’s helped fosknow everyone here knows what I’m ter the great relationship we now talking about with the paint and mateenjoy with the ABAC. Much like your rials being taxed when you buy them shops, we can’t succeeed without deand taxed again when you sell them to livering a quality product.” the end user. Hopefully, the lobbying Parese distributed gift bags to atthat we have been doing for over a year tendees which contained an Insurance on this issue will be fruitful.” Claims Directory and Auto Rights and Before introducing the first guest Responsibilities booklets which can speaker of the evening, Ferraiolo stated, be given to customers to walk them “Tonight is about tools. Everything disthrough all they need to know after cussed tonight will be designed to probeing involved in an automotive accivide you with viable ways to make dent. To acquire more booklets or to more money for your business. Please contact Parese, please email him at enjoy tonight’s speakers. I’m sure that jparese@buckleywynne.com or call you’ll leave with different ideas, better 800-445-2278. ways to run your business, and soluAfter his presentation, Parese intions to help your bottom line.” troduced the evening’s main speakers First up was Gene Tye of Corpofrom Superare Marketing in Belmont, rate Business Solutions, and his pres- MA: co-founders Tony Lombardozzi entation, “Inside the Red Zone: Exit and Peter Abdelmaseh. Each gentleStrategy Planning for Body Shop man has served several decades as inOwners,” focused on the question of dustry advocates for independent

18 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

body shops as well as having owned shops personally and having been involved with their local associations. Abdelmaseh began with an overview of the evening’s presentation which was a combination of two of Superare Marketing’s full-day seminars: “Short Pays” and “The True Cost of Labor and the True Cost of Your Labor Hour.” He stated, “This is a quote that we have been using in our seminars: The auto body industry in the United States is the only 60-billion-dollar industry that sells its products and services for 30 billion dollars! We believe auto body shops price their products and services for half price; we all know why, but it doesn’t have to be that way, and there are people around the country who are realizing this.” Introducing his partner, Abdelmaseh noted, “Tony Lombardozzi was perhaps the best known practitioner of the method that we work with for individual shops to begin to turn this

around.” Taking the stage, Lombardozzi listed the strategies he would go on to cover. He insists that shops have the right to a profit, profit and owner compensation should be between 2540% which can be achieved by being in control of your own business, and shops must create an end-to-end strategy and make good decisions to stick with it. Lombardozzi discussed how to charge the right price and receive the price needed to make a solid profit. Mentioning short pays, he observed that there may be a difference between what a shop needs to charge and what they are being reimbursed for, and he admitted that, until the system changes, the only alternative may be litigation. Lombardozzi encouraged attendees to realize they can set their own prices, and in order to set a realistic retail price, they must know the true cost of everything. He advised, “Tonight’s presentation will introduce you to the main elements of these strategies.

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Some of you will agree, while some of you will have questions, but these are tried and proven strategies.” According to Ferraiolo, “Lombardozzi went on to command the attention of the room for the next 90 minutes, and for the entire time, you could hear a pin drop.” In upcoming weeks, Superare Marketing will hold two major seminars at

the Best Western Hotel in North Haven, CT. On Saturday, April 23, Abdelmaseh and Lombardozzi will present “Collect Your Short-Pays Successfully,” and “Running a More Profitable Body Shop” will be held on Saturday, May 14. Both full-day seminars are scheduled from 8:30AM until 4:30PM, include breakfast and lunch, and cost $249 each with a discounted price of $179 for ad-

ditional attendees from the same shop. For more information or to register, contact Superare Marketing at 617-9936901, tony@superaremarketing.com, or peter@superaremarketing.com. The evening’s sponsors included Buckley & Wynne, Enterprise Rent-ACar, Auto Body Supplies and Paint, and Corporate Business Solutions. Ferraiolo also thanked ABAC’s new Diamond

Sponsor, the Hoffman Auto Group, represented by Wholesale Parts Director John Musco. The association will hold its Annual Meeting in May where, Ferraiolo said, “The ABAC will continue to provide quality education and looks forward to keeping this momentum going forward at the May meeting.” Contact ABAC at www.abaconn.com.

Continued from Cover

sonal inspection of the vehicle or from photographs, videos or electronically transmitted digital imagery of the automobile; however, no insurer may require an owner of an automobile to submit photographs, videos or electronically transmitted digital imagery as a condition of an appraisal.” This text was revised to include: “Supplemental repair estimates that become necessary after the repair work has been initiated due to discovery of additional damage to the motor vehicle may also be made from photographs, videos or electronically transmitted digital imagery of the motor vehicle, provided that in the case of disputed repairs, a personal inspection is required.” “WMABA is pleased that the bill passed with their suggested amend-

ments which place emphasis on the physical inspection and promotes consumer safety by allowing the collision repair professionals to determine what is necessary to properly restore these vehicles to their pre-loss condition.”

a hearing, they vote on that bill within a few days after the hearing. If the insurance industry felt they had the votes in Committee, they would have pressured the Chairman to push for a vote. The state budget situation in PA is currently the most important issue, and until the two sides agree to resolve that issue, not much will happen, especially passing a high profile and customer protection type legislation.” PCTG has been hard at work lobbying to stop the bill and has hired a firm to repress the proposed legislation. Behrndt stated, “Time will tell if we are successful at stopping this legislation, and even if we are successful, we can only assume the Insurance Federation will bring it around again next session.”

VA & PA Photo Bills

guage in Senate Bill 193 to minimalize the possible risks. Attempts at compromise were successful, ensuring that the physical inspection receives precedence over photos provided when writing the appraisal. The original proposed amendment to VA Code 38.2.510 read, “Notwithstanding the requirement that an appraisal be based upon a personal inspection, the repair facility or the insurer making the appraisal may prepare an initial, which may be the final, repair appraisal on an automobile that has been damaged as a result of a covered loss either from the representative’s per-

20 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

PA Photo Bill Update In January, Autobody News spoke with the Pennsylvania Collision Trade Guild (PCTG) about a photo only appraisal bill being presented in their state. Steve Behrndt, Director of PCTG, has provided an update that the Senate Banking and Insurance Committee has not yet voted on House Bill 1638. He said, “Locked in Committee is a good situation for PA consumers and collision repairers. The Committee held a hearing, and typically, once they hold

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 21

Shop Strategies with Stacey Phillips - ASSISTANT EDITOR

Collision Shop Benefits from Improved Cycle Time, CSI and Closing Ratio After Joining CARSTAR Network Autobody News spoke to Steve Ranck at CARSTAR John Hine in California about the collision center’s decision to join the network in April 2015 and find out how it has benefited the business.

Steve Ranck, CARSTAR John Hine collision manager

John Hine Sr. established John Hine Pontiac in San Diego, CA in 1957 and the John Hine Mazda franchise in 1971. He received the Time Quality Dealer Award in 1991 and his son, John Hine Jr., accepted the same award in 1994. Two years later, Hine, Sr. passed away at 91 years of age. “He believed in hard work, equality and fair treatment of both customers and employees,” said Ranck, CARSTAR John Hine’s collision service manager, who has worked there for 37 years. “His legacy is our dealership’s dedication to delivering complete customer satisfaction and employee goodwill. I know that the continued success of our dealership lies within every employee’s ability to deliver his/her personal best.” The collision repair shop is located at John Hines Mazda, which is in Mission Valley, CA and run by John Hine, Jr., who had worked with his father since 1971.

What prompted the decision for John Hine Mazda to become a CARSTAR franchise in 2015?

Most insurance companies are A: now going to MSOs to do their business. I saw the trend moving that

way about a year and a half ago and we looked at it as an opportunity to get involved. The way I used to get my business is that I’d meet an adjuster and their boss and then I’d join their program. Everything is done at the corporate level now.

We have shops right next to each other that are in the same industry. Years ago, I never used to see that. It’s strange because what happens is that people will come in and shop you to see what you are going to do with their deductible. We currently have seven DRPs with different insurance companies. I didn’t lose any of those since joining CARSTAR.

What has the reaction been from Q: your employees and your customers? It’s an exciting new process. We A: have 32 employees and a lot of them have been here a long time. I have

one employee who started with his dad as a helper 42 years ago. You worry about people when it comes to change. Anytime you rock peoples’ world and change it around, it’s not always easy for them. When we took on this change, we started keeping our team involved in all of the processes. We let them know what CARSTAR is all about, and what they were going to bring to the table. They really got onboard with the change. Since the change, the moral has improved greatly.

Kenny Bailey said the addition of parts carts has helped keep the dealership more organized

With our customers, we explain that we are still John Hine with the same employees we’ve had. Then we tell them why we took this opportunity. It has been a positive reaction. We give a lifetime warranty on our workmanship anyway. Now that they see that we’re part of a larger organization it gives them a little more security. And our customers our just wowed by the way our shop looks.

Can you tell us about the CARbranding that you have Q: STAR

22 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

incorporated into your shop, which is part of the new look in shops across the country?

We’ve done a lot of CARSTAR branding and it was a fairly easy A: process. Our office was completely dif-

ferent before we joined CARSTAR. When an insurance company sends a client to a body shop, they want it to feel the same way, whether it’s in Texas or San Diego, so name recognition becomes important. In addition to the fresh new paint and CARSTAR graphics, we also rebranded our 60-foot-tall sign that sits right on Interstate 8, where more than 350,000 cars pass each day. The remodeled lobby has also had an impact on the customer experience. Just seeing the CARSTAR “Relax, We’ll Take it from Here” slogan in the office seems to have a calming effect when a customer, who has just been in an accident, sits down with the service

writer to start talking about their repair. To add to the professional look, all of our employees wear CARSTAR uniforms. They have even gone so far as to take it upon themselves to coordinate their dress. One week will be black shirts, the next week red. The appearance of the staff has added to the positive impact on the customer perception of the shop. Also, the uniforms are different from the dealerships’ uniforms. We decided to pull ourselves away a little from the dealership, just to let people know we’re not just a Mazda body shop but that we work on all makes and models of vehicles.

What are some of the changes Q: that have taken place since joining CARSTAR?

We’ve taken advantage of CARA: STAR’s knowledge and experience to revamp our production area for

a better workflow. Going through CARSTAR’s tier process, our shop is a lot cleaner and more organized than what it used to be. For example, we purchased 25 parts carts, which have made a huge difference in shop efficiency. There are no longer parts scattered on the ground. They are able to clean the entire floor every night. The change has been a complete 180 from what the shop used to look like. Not only have the carts made for a much cleaner production area, the end result has also made an impact on the way customers perceive the the shop when they go in the back. We also noticed about a day and a half improvement in our cycle time just by making that change. Another change was incorporating the DFR (dissemble for repair) process.

We always called it tear down – you take the car apart and write your estimate. DFR is more than just taking the

lights, etc. We do this because we want to know at the beginning of the repair process everything that is wrong with the car instead of at the end. This has helped us tremendously by being more organized and improving our cycle time.

After visiting other CARSTAR Q: locations, what new processes have been added?

Javier Zamora, head painter at John Hines

car apart. Now, instead of taking the bumper off, we take everything off that bumper, including the clips, side maker

After talking to two other CARA: STAR locations in San Diego and the corporate store in Kansas, we

decided to add a second computer monitor so customers can see the actual estimate being built. We also started mapping the car, which entails showing the damage on

the windshield of cars with marker pens. The main advantage is that we bring it to the attention of everyone involved in the repair process so things aren’t being missed. Then the car is disassembled for repair. It is an efficient process because you are trying to catch it at the beginning instead of at the end. Our Area Director of Operations (ADO) manager, Mike Calens, comes in about once a month and helps us evaluate our shop. What CARSTAR does is help you put certain goals into place. If you want to be part of a DRP program, you have to be one of the top elite shops in the industry. They want you to reach a certain tier level. If an insurance company markets our shop to get more business,we need to have our cycle time, CSI and closing ratio in the right spot. What are the benefits you’ve Q: experienced as a result of joining CARSTAR? When working at the same shop for 37 years, there is a tendency A: to do things the same way. You don’t

see new ideas that much. By joining CARSTAR, getting involved in their Edge process and going through the three Cs – cycle time, CSI and closing ratio – it really fine tunes your store. Edge performance stands for Education, Development, Growth, and excellence. It starts with working on your shop’s foundation and culture and then moves in operations, and the CARSTAR Lean process. We did our research and talked to other CARSTAR locations. The first thing you do is ask ‘Did they bring you business?” I talked to two different CARSTARs and was told,’Steve, even if I don’t get one DRP, they are making me a better store.” They come in with their procedures and work with you to get your numbers in the right position so you become more appealing to the insurance companies. When you have been in the same shop for so long sometimes you can get tunnel vision. You don’t see the big picture. Being with CARSTAR, they really looked at our procedures and said, ‘Steve, this is what we suggest.’ Then we tried them out and it works.

Have you encountered any chalQ: lenges and how have you addressed them? See Collision Shop Benefits, Page 24

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 23

PPG’s Charley Hutton Delivers Another Ridler Award-Winning Finish

A 1939 Oldsmobile convertible sporting a custom-mixed metallic PPG ENVIROBASE® High Performance finish by Charley Hutton won the 53rd annual Ridler Award at the recent 2016 Detroit Autorama held at Cobo Hall. The Ridler Award is presented to the most outstanding custom car or truck making its debut appearance at the Autorama, an event—now in its 64th year—held every winter in the “Motor City.” It was Hutton’s fourth

The 1939 Oldsmobile convertible “Olds Cool”

Ridler honor. Previous wins came in 2005, 2007 and 2013. It was also the fourth time in nine years that an entry painted with PPG Automotive Refinish products took the prize. Nicknamed “Olds Cool,” the custom build is owned by Bill and Debbie Thomas of Georgetown, Texas. The car was constructed over four years by Continued from Page 23

Collision Shop Benefits

When you have any change in A: your shop, you’re going to have some challenges to address. First

of all, you have to really look at the buy in from your employees. When CARSTAR came in, they focused on our foundation first. They looked at our employees. When our ADO Mike first came in, he took the time to get to know the employees. Now when we implement something new, we do it together. When you being to change and clean up your shop, your employees start to notice and say, ‘Wow, there is something going on here.”

Q: Our upcoming goal is to bring A: more jobs into our shop. We are still a relatively new CARSTAR shop, What are your upcoming goals at CARSTAR John Hine?

but our goal is to be their flagship collision center in San Diego. We currently work on about 135-40 cars per month. We can handle a lot more than that. I set up a goal board and every

Harold Chapman and his team at Customs & Hot Rods of Andice, also of Georgetown. Hutton painted Olds Cool at his shop, Charley Hutton’s Color Studio, in Nampa, Idaho. Hutton is well-known for his ability to select and mix colors to match a car’s style and character, giving it a distinctive look. In this case, the car’s custom color, Kona Brown, was personally created by Hutton. He used PPG Envirobase High Performance waterborne products and the GLOBAL REFINISH SYSTEM™ brand D8152 Performance + Glamour Clearcoat to give Olds Cool its finish. “The Olds is beautiful, and the key to our success has been working with PPG’s Envirobase High Performance waterborne basecoat,” said Hutton. “Using Envirobase High Performance products made it possible to create the exact finish we wanted. When mixing a custom color, Envirobase High Performance paint always exceeds my expectations; the colors that we’re able to achieve are so clean and brilliant.”

week I post what needs to be done that month. Then we can see how we are doing and track it. We’ve incorporated that recently and we’re finding that it brings everyone together so they are focused on the main goal of the shop. We also have a production meeting twice a day. This is when all of our employees meet and talk about what they have planned for the day.We keep the meetings under 10 minutes and all the Metal men and Painters attend.

What is your advice to other Q: shops considering joining an MSO? I’ve noticed over the years inA: surance companies are putting a lot of emphasis on MSOs. It makes it easier for insurance companies to deal with one contact person for a large qroup of shops. But the main reason for joining is that they are going to make you a better shop. With the Edge performance platform and there support with human resources, marketing, insurance contacts, legal, they will be a great partner in your business.

www.autobodynews.com

24 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

and AAA survey found one-in-four car owners could not afford major repairs. The Insurance Institute for Highway Safety (IIHS) states that aftermarket repairs would become too expensive.” parts do not compromise the safety of Autobody News reached out to Aua vehicle. tomotive Service Association (ASA) According to ASA, in the United regarding the proposed state law. “LegStates 44 states have laws governing islation similar to Maryland House Bill the use of replacement crash parts. Of 1258 has been considered prethese 44 states, 36 require viously in Maryland,” said notes to consumers when afASA Washington D.C. Repretermarket crash parts are sentative Robert L. Redding, used and seven states require Jr. “ASA supports the provinotice and consent from the sions requiring two-year consumer. OEM parts use only, certified The bill will need to pass parts after the first two years a vote in the House of DeleASA Washington and the written consent for the DC Representative gates, and then go to the Robert L. use of non-OEM and non-cerState Senate before being Redding Jr. tified parts. We believe the signed by the governor. If certification language in the legislation passed, the bill would take effect Janneeds further discussion.” uary 1, 2017. According to a consumer report Autobody News will continue to survey, 40% of car owners postpone follow this story and invites comment car repairs due to a financial burden, from readers. Continued from Page 12

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New MD Legislation Will Honor Crash Victim and Work to Speed up Repair and Recalls

New car safety legislation before the Maryland legislature would improve public access to key safety and warranty information as it fights unfair practices by big carmakers. The legislation known as “Amber's Law” offers a package of reforms that promise to save lives by speeding up repairs and recalls, especially in the face of recordbreaking car recalls and a series of high-profile auto safety scandals, including deadly GM ignition switch failures and long-delayed recalls of Takata airbags that have killed at least 10 drivers. The bill (HB 982/SB 666) is sponsored by Del. David Fraser Hidalgo in the House of Delegates and by Sen. Susan Lee in the MD Senate. The House Environment and Transportation Committee head the bill on March 3. The Senate Judicial Proceedings Committee considered it on March 10. “Our bill is about safety and transparency for all Maryland drivers,” Senator Lee noted. “It’s a scandal that consumers today aren’t getting the full information they need. This bill changes that equation to protect Maryland families.” The legislation enables dealers to share warranty policy updates, service bulletins and other key safety informa-

tion with all customers. Under current practices, auto manufacturers share such information with dealers but often prohibit dealers from disclosing it to drivers unless they specifically ask about a related problem. “That secrecy deprives drivers of information they need to know—information that can save lives and help consumers keep their cars safe on the road,” Consumer Auto executive director Franz Schneiderman argued. “Our bill makes clear that dealers can share that information with their customers. The sunshine that puts on dangerous defects will speed up repairs and recalls for all drivers.” The bill honors Amber Marie Rose, a 16-year-old Charles County girl who died on July 29, 2005 as a result of an ignition switch failure in her new Chevy Cobalt. Rose was among the first of at least 124 people to die because of failures in that 99-cent part. General Motors knew about the defect for at least a decade before finally beginning to recall more than two million dangerous cars for repair in February 2014. Rose’s birth-mother, Laura Christian, has worked for years to hold GM accountable for its long delay and to win justice for Amber and for the family

members of other victims of the GM scandal. “If we had known what GM knew about the ignition switch defect in 2005, we never would have bought that car—and Amber would be with us today,” Christian noted. “The bill honors Amber by getting information that can save lives to all Maryland drivers and allowing dealers to stand up for their customers.” More than 100,000 people have signed a petition on change.org asking the MD legislature to change the rules to get critical safety information to drivers like Amber. You can see the petition here: https://www.change.org/p/ keep-car-buyers-and-drivers-safe?recruiter =88982734&utm_source=share_petition &utm_medium=copylink Key provisions of the bill include: ● Preventing carmakers from punishing dealers for sharing safety information, repairing cars under warranty, or exercising other rights.

● Easing the audit pressures that make it difficult for dealers to repair cars under warranty. ● Allowing dealers to publish more complete safety, price and product in-

formation on their websites so consumers have easy access to that information online.

● Letting dealers buy more supplies from lower-cost Maryland suppliers— a “Buy Maryland” rule that will save dealers and consumers money and support other MD businesses. ● Increasing the maximum fines for carmakers that violate MD consumer protection laws.

● Making sure dealers can use a trial by a jury of consumers to fight abuses by carmakers. This package of reforms “works together to get consumers crucial safety information and to enable dealers to serve as the first line of defense for their customers,” House bill sponsor Delegate Fraser-Hidalgo argued. “Passing the bill will improve safety, help consumers make better-informed car buying and car repair choices, and cut costs for Maryland drivers,” the delegate concluded. Learn more at www.consumerauto .org

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Best Practices Shared After CARSTAR Merger

Auto Shop Owner Handcuffs, Zip-Ties Break in Suspect in RI

grow the franchisee network in Canada to more than 240 centers. “He has CARSTAR’s U.S. and Canadian op- worked in multiple roles and we’re erations have merged and Michael very excited to give him the opportuMacaluso has assumed the top lead- nity to lead both enterprises,” said ership role for CARSTAR North Costa. America. Macaluso, former presiCARSTAR’s top initiatives, acdent of the Canadian entercording to Costa, will focus prise, will now lead approon growing insurance relaximately 500 CARSTAR tionships, franchisee proflocations. itability and further exThis follows the Februpansion. “We always knew ary 25 resignation of Dan that Canada had a strong Young, head of CARSTAR business, much stron-ger U.S. Young was named presthan the U.S. and this gives ident during Driven Brands’ us the opportunity to let the acquisition of CARSTAR in Michael Macaluso Canadian infrastructure perwas named November 2015. meate the U.S.,” he said. president of Autobody News spoke to “We’re going to absorb the CARSTAR North Jose Costa, Driven Brands Canadian best practices into America paint and collision group presthe U.S.” ident, about the recent changes at the Costa explained that Canada company. supports its field structure differently “The merger was planned later than the U.S. with a head of developon but with Dan Young’s resigna- ment, head of operations and head of tion we had to accelerate some of insurance by territory. Upcoming our plans,” said Costa. “We respect plans also include hiring more field Dan’s decision and thank him for support in the U.S. being an invaluable asset during Dean Fischer, head of U.S. operthese pivotal months of on-board- ations, and Arlo Johnson, head of U.S. ing.” insurance, will both report to Macaluso. Macaluso has been with the CAR- No other changes were made to the exSTAR brand since 2008 and helped ecutive team. by Stacey Phillips, Assistant Editor

by Tony Gugliotta, NBC 10 NEWS

A burglar got a big surprise after breaking into Al's Auto Parts, a body shop on Huntington Avenue in Providence, RI. A silent alarm alerted owner Albert Scialo at his home just before midnight on February 29 that there was activity in the shop. Scialo and his 23-year-old son responded to the shop and came upon the suspect, 32year-old Angelo Lamourt. “Apparently (Lamourt) ran past them trying to get away. They tackled him and after a brief struggle, they were able to detain him,” said Maj. David Lapatin of the Providence Police Department. Scialo told NBC 10 News that he and his son secured the suspect's hands and feet with zip ties and held him in the shop until police arrived. But while he said Lamourt told police he entered through a broken glass window on the garage door, Scialo also noted that all the glass was intact before the incident. When the suspect was caught, a power drill was recovered from his backpack. Police said power tools

are often targeted items to steal. “If you look at the big stores such as Home Depot (and) Lowes, everybody's trying to get out with the power tools,” said Lapatin. “If you look, they're in their own section.” When police arrived at the body shop, they found a large screwdriver and a broken golf club in the suspect's possession—possibly tools used to break in or possible weapons. Though the incident ended peacefully, police warn business owners and other residents that taking matters into their own hands can be dangerous. “We don't encourage it because in other cases, innocent people could get hurt,” said Lapatin. Lamourt has several charges related to breaking and entering, as well as shoplifting on his record. Thank you to NBC 10 News for permission to reprint this article.

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Western Associations

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

California Autobody Association Takes on the Capitol at Legislative Day on April 12th with Ed Attanasio

Every year, the California Autobody Association co-hosts its ASCCA/CAA Joint Legislative Day and this year it takes place on April 12, 8 am to 3 pm at the Capitol Event Center, located at 1020 11th Street in Sacramento. The CAA gears up for this event every year as the organization partners with the Automotive Service Councils of California (ASCCA), the largest independent automotive repair organization in California, to hold this event. With more than 800 members, the ASCCA has been representing all areas of the automotive repair industry, including mechanical, auto body, supplier and educators in the automotive technology field for the past 76 years. CAA Executive David McClune is ready to lead these two groups as they take on the Capitol. “This is our big moment every year when we can meet with our political representatives,” he said. “We can influence these bills before they become laws and provide valuable feedback for our key decision makers, so we tell our members to seize the moment and make the most of it. Most importantly, we can provide them with a look into how our CAA State President members run their Don Feeley is businesses and all encouraging more of the factors that body shop owners can affect them and to attend the their livelihoods.” ASCCA/CAA Joint By strategically Legislative Day on April 12 in scheduling appointSacramento ments throughout the Capitol’s offices all day long, AS CCA/CAA members break into smaller groups to cover as much territory as possible. With major concerns about bills that can greatly impact their businesses, collision and mechanical repair companies come from all over the state every spring to meet with their local legislators and discuss “hot button” bills. Although this year’s slate of speakers at Legislative Day was not yet finalized, past speakers have included: The Chief of the Bureau of Automotive Repair; Governor’s Small Business Advocates, the Governor’s Economic Adviser; Chair of the Select

Committee on Career Technical Education and Workforce Development; the author of AB 2289 (Smog Check), and Chair of the Senate Transportation and Housing Committee. To kick off the day, everyone is briefed by Jack Molodanof, the lobbyist for both organizations, who instructs the members about the correct protocol for meeting with their legislators or their representatives. Molodanof always opens with a joke or amusing anecdote, but then he’s all business. Coaching the members of ASCCA/CAA about how to approach their local representatives is always crucial and that’s why Molodanof always sets down the rules first. In the handbook that every member gets from Molodanof at the start of Legislative Day, the lobbyist ably summarizes the day’s purpose. “Not only can one person make a difference, but one person can also make others change their perception of an issue. You have the power in that you have firsthand experience as it relates to issues that are most important to you. Let the lawmakers know how you feel about these issues. You must be heard to make a change. John F. Kennedy once said, ‘One person can make a difference and every person should try.’” Molodanof was happy with last year’s turnout, he said, and is hoping to see more body shop owners at the Capitol in 2016. “We’re pinpointing proposed bills here at the State Capitol and raising awareness about possible future laws that can directly impact the collision industry. It was wonderful to see so many new faces at last year’s Legislative Day and I’m hoping to see even more on April 12.” Don Feeley is the CAA State President and a highly-respected name in the collision industry, especially in southern California. He has served CAA at the state level for more than 21 years, holding each of the seven positions available on the board an unprecedented three times. So, when Feeley talks about the importance of events such as CAA Legislative Day, people listen. Feeley said that body shop owners should attend Legislative Day for many reasons. “Some years, we have

30 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

bills that impact the collision repair market greater than others, but we always need to be vigilant, because there are many issues that affect collision repairs such as environmental and governmental regulation changes not to mention insurance companies who are always working on their best interest at the State Capitol,” he explained. “One of the problems of leg day attendance is that a lot of body shop owners like many Americans are turned off by politics in general and don’t feel their voices will be heard so why bother. They figure, CAA has a great lobbyist in Jack Molodanof, and that’s true, but he can’t do it all alone.” Feeley said that showing up at the event is more than halff the battle. “We need collision repairers here physically, so that our representatives can see that Jack Molodanof and David McClune and our board have some numbers behind it. When they see that we are a significant group, it adds credibility to the

work that the association is doing for its members and the collision industry. So, by showing up, we can emphasize our role and show our strength.” Ideally, getting a body shop owner in office in California would have been a great way to give CAA a much-needed voice at the legislative level. Unfortunately, recent attempts have fallen short. However, Feeley still thinks that CAA’s current methodology, with the help of its members, is the best way to tell their story and educate their elected officials on the collision repair environment. “A few years ago, Kelly McCarty, a shop owner ran for the 64th Assembly District in the Inland Empire and although it was a close race, we lost,” Feeley said. “Having a voice is a big deal and getting someone in office would be nice, but in the meantime we need to mobilize our members and get more new members to assist us. I look forward to seeing our members at the state Capitol on April 12th.”

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 31

Looking Outside of Industry for New Ideas Prompted Maaco Partnership With Pep Boys

Costa said it’s a fraction of the cost to set up a satellite location beShortly after Maaco announced a na- cause the repair is still done in one of tional partnership with Pep Boys in Maaco’s main facilities. “It’s basically March and the opening of two GA satel- a concierge service,” explained Costa. lite locations, Autobody News inter- “You write the estimate, you get a loaner viewed Jose Costa, the group president for the consumer and you take the keys of the paint and collision divithere. Then we transport the sion for Driven Brands, which vehicle to the production faowns Maaco. We asked Costa cility, which is usually three what it takes for a body shop to five miles away.” to think outside of the box Over the last 18 months of and continually advance their testing, they have averaged business. about eight to 10 cars a week, His advice is to do a lot generating about $275,000 to of reading. “I encourage our $300,000 incremental to the Jose Costa team to read and learn as production facility. much as they can and to be inquisitive The first two Maaco shops opened and learn from other industries,” said in March in existing Pep Boys locations Costa. Many people just look at their at 1531 Cobb Parkway S, Marietta, GA competitors and their industry. There and 5000 Highway 138, Union City, is so much learning that other indus- GA. Plans are in place to open additries can teach the aftermarket auto- tional locations in Los Angeles, CA. motive industry.” The shops offer full-service autoCosta said the satellite model has motive services, including auto paintbeen implemented in other industries ing, collision repair, insurance claims, with much success. fleet and industrial services, paintless Maaco spent the last two years dent repair, scratch repair, detailing, testing the concept, opening 18 loca- trim insulation and decaling, with the tions. They currently target affluent support of nearby Maaco production female consumers who spend more shops. money in car repair and visit a shop Costa said they plan to use a momore regularly. bile estimating platform in some of by Stacey Phillips, Assistant Editor

32 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

the Pep Boys’ satellite locations as well as digital merchandising boards, with the intent of saving space and enhancing the customer experience. “The footprint varies from location to location so where we have more space we can have more merchandising,” said Costa. “Easy access to Maaco’s services will be a great addition for our customers,” said Joe Cirelli, SVP Real Estate & Construction for Pep Boys. “Maaco has a reputation for quality work, and Pep Boys’ customers now have a truly full-service automotive maintenance shop for all of their needs.” “It was a great fit,” said Costa, referring to the partnership. “They have a lot of foot traffic that they bring to their stores. They don’t offer the type of service we offer so it was complementary. Our consumers are very similar so it made sense to develop this partnership with Pep Boys.” The goal is to open 25 to 50 satellite locations a year. CARSTAR, also owned by Driven Brands, uses a similar model in Canada. “We’re very excited about this concept and we feel it puts our brand in front of the consumer,” said Costa. A fan of the franchise model, Costa said it helps the middle-Amer-

ica small business owner take their company to the next level. “There are incredible benefits to being a franchise owner,” he said. “I call franchisees ‘light entrepreneurs’ because you get a playbook and you are getting a support structure from a national brand so it’s a lot easier to play within the guardrails of the brand versus being a small independent.” He said it also gives an owner more purchasing power and access to technology and marketing. Maaco invests more than $25 million in marketing. “There is no way a small independent can do that,” said Costa. “Our training arm—with Maaco University and CARSTAR University—are best-in-class schools for technicians.” Maaco currently has more than 490 locations in the U.S. and Canada and plans to have 1,000 by 2020. “A lot of people gave us a hard time when we first joined because we didn’t have automotive experience, but we brought a very fresh perspective and that’s where those ideas, like our partnership with Pep Boys came from,” said Costa. “We like to be pioneers and we hope that we can help the industry and help raise the tide for everyone.”

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National Associations with Chasidy Rae Sisk

Why WIN? Webinar Explains Why Everyone Should Be a WINner On Thursday, February 18, the Wo- sions. WIN also awards scholarships men’s Industry Network (WIN) hosted for students and professionals, and Chasidy Raerecognizes Sisk exceptional women in the “Why WIN? Anwith Introduction to the collision repair industry through their Women’s Industry Network” to exMost Influential Women (MIW) proplain WIN’s mission, how WIN engages women, why the industry needs gram. WIN is very involved nationally and engages in its targeted campaign WIN and how to get involved. The informative webinar was conducted by through the association’s leadership, Michelle Sullivan and Mary Kunz, co- which is comprised solely of volunteers who donate their time and talents chairs of WIN’s membership commitwith Ed Attanasio tee, who expressed the desire for all to growing the organization. There are a variety of ways to get participants to learn something new involved with WIN, according to Sulabout WIN. WIN was founded in 2006 by a livan. If members want to help adsmall group of women who had made vance the organization’s strategy and significant contributions to collision further its direction, they can join one with Ed Attanasio repair. They began the organization to of the following committees: scholarsupport and encourage women in all ships, industry outreach, membership, communications, sponsorship, stratesegments of the industry. Sullivan explained that WIN pro- gic planning, governance and confervides great leadership opportunities ence planning. Kunz explained, “Most committhrough their Board of Directors and tees have a monthly call, but there are various committees, plus their annual with Ed Attanasio educational conference offers plenty no required time commitments. It’s of developmental and breakout ses- what you can contribute and where

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your talents best fit. Joining a committee is the best way to engage with this organization and get the most out of your membership.” WIN also offers opportunities on their Board of Directors, and the organization is looking to bring new people and ideas in. The deadline for this year’s Board of Directors has been extended through the end of February. The deadline for scholarship applications has also been extended through the end of the month. WIN offers scholarships for high school students, as well as post-secondary/continuing education students to allow recipients to further their development and help women advance in the industry. Scholarship recipients receive WIN memberships, and some are selected to attend WIN’s annual conference where they’re given the opportunity to network with women in the collision repair industry. Schol-

arships recipients are mentored by MIWs and board members. WIN’s website also features an employment center for job postings and resumes. Sullivan noted, “There’s a lot of talent in this industry and getting involved with WIN helps industry engagement and improves retention.” Over the past few years, WIN has increased its visibility by attending a lot of national events. This year will be the first time WIN makes an appearance at AASP/NJ’s NORTHEAST Conference and Tradeshow. Kunz said, “WIN is looking to constantly be visible in the industry and really engage women.” WIN’s “There’s a Place for You” campaign focused on educating women about all the different opportunities in the industry and allowed them to open a dialogue about the various career paths available. As part of its efforts to create a recognizable brand, WIN has created brochures and other marketing

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materials which are available to members for distribution. Sullivan and Kunz are proud of WIN’s MIW awards which they took over from AkzoNobel in 2013 to honor women who have “enriched the collision repair industry with their vision, leadership and commitment to excellence.” Nominations are collected each fall and then reviewed and selected by an independent third party; MIW honorees are acknowledged at the MIW Gala during WIN’s annual conference. “Why does the industry need WIN?” Sullivan asked. “What does the face of your business look like, and how is your organization positioned for growth? Looking at diversity and sustainability, we need an organization like WIN whose mission is to engage women. For years, shops have struggled with a shortage of technicians; our scholarship program sees a number of women entering that segment of the industry.” Sullivan continued, “Join WIN, join committees and encourage others to join. There are still people who don’t know about WIN, but membership is beneficial and provides great networking opportunities. Become a corporate sponsor or donate individu-

ally as a Friend of WIN to support our scholarship fund. Even better, attend WIN’s annual conference - we’re always looking for people to share their experiences!” Kunz said, “It’s a unique experience to be in a room filled with women from this industry. The camaraderie is great. I got hooked at my first conference and have been a member ever since. It’s been a wonderful opportunity to grow myself professionally and personally. Attending a WIN conference will serve you well.” When WIN was founded in 2006, the organization had 140 members. Thanks to their membership drive, they ended 2015 with 478 members, the highest number to date, which represents a 29 percent increase over 2014. Going forward, WIN plans to enhance its member profiles in order to focus conference sessions on specific segments of the industry. WIN memberships run from January through December and are available online for $75 annually. Kunz and Sullivan “encourage you to join and to spread the word about WIN.”

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WIN Announces 2016 Educational Conference Content and Celebration of 10th Anniversary

The Women’s Industry Network (WIN) announced details of the 2016 Annual Educational Conference, scheduled to take place in Tampa, FL, May 2-4 at the Tampa Downtown Hilton. “Power of the Past-Force of the Future,” is the theme for the 10th annual conference. Olympian, Shannon Miller is the featured keynote speaker who will take main stage on May 3. Her message “The Gold Medal Mindset” will be heard by attendees from all segments of the collision repair industry. “I was there to see her claim the gold medal and now we will hear about her incredible journey to that professional accomplishment,” explained Yolanda Sandor, BASF, and co-chair of the Conference Planning Committee. Additional guest speakers include David Leuhr, Elite Body Solutions; Laurie Altman, VP 3M; Susan Lombardo, Sr. VP Vehicle Acquisitions – Enterprise Holdings; Collette Bruce, owner, Team Safety, LLC; Karen Fierst, principal, KarenOr Consultants; Jeff Peevy, president, Automotive Management

Institute (AMI), Kristen Felder, Engage Target Media and Mark Claypoole, chairman and CEO of Optima Automotive. In addition to the professional development that will be presented, attendees will also have an opportunity to participate in the annual WIN Scholarship Walk that benefits the WIN Scholarship Fund and hear from some of WIN’s founding members during a Q&A panel. The WIN Gala and Most Influential Women Reception will be held on May 2 to celebrate past recipients as well as the 2016 Most Influential Women Award Recipient, Michelle Sullivan, regional vice president of FinishMaster, Inc.

Members registering before April 1 will receive a discounted rate of $400. For member registration after April 1, the rate is $450. Nonmembers may attend at a rate of $650 and attendance for the Most Influential Women Reception is $75 per person. Promote your business For more information and towith an exclusive article featuring register, visit www.womensindustrynetwork.com. your products or services.

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The Body Shop of the Future

Mike Anderson shares tips on how to “thrive and not just survive” by Stacey Phillips, Assistant Editor

What will it take for an auto body shop to prosper in the future? Industry expert Mike Anderson shared tips on what shops need to do in order to “thrive, not just survive,” during a recent California Autobody Association’s chapter meeting. It was held in March at Mitchell International in San Diego, CA. Regardless of the type of business, Anderson said a company needs to focus on three specific areas: marketing, production, and finance human resources.

Sales & Marketing Currently, if a vehicle owner does not have a shop in mind to go to after an accident, the insurance company will make a referral to a DRP (direct repair program) shop. Anderson said that moving forward, OEMs will become more involved in this process. In the future when someone is in a collision, Anderson said the technology in the vehicle will automatically notify the OEM about the drivability of the car. This will give the OEM an opportunity to direct where the car will be repaired, also known as “virtual steering.” During his presentation, Anderson showed CAA members a Collision Hub video released in 2015 titled, “Virtual Steering The Future Of Automotive Collision Claims.” https://www.youtube.com/watch?v= MWqYWDdRvu4 Several OEMs have already incorporated this technology into their vehicles and are in the process of building vehicle networks. Meanwhile, insurance companies are in discussions with OEMs to be their preferred carrier of choice. Anderson shared information from Erica Schaefer at Chrysler: “Statistics have shown that 60 percent of consumers who have to return their car back to a body shop for a problem no matter how minor, will sell or trade that car in within one year. Sixty-three percent of that number will change vehicle brands when they sell or trade in their vehicle.” “At the end of the day, the OEMs want to protect their brand,” said Anderson. “DRPs are not going away; however, I do believe that as shops we need to set ourselves up to win and this OEM trend needs to be clearly

considered.” performance indicator) that insurance He said in the past a prosperous companies are now tracking and shop was either part of a DRP or had should be monitored – Assignment high-end OEM certifications. This is no Received to Estimate Start Date. This longer the case, according to Anderson. is the time period that insurance com“The shop of the future that is going to panies measure a shop from the time thrive and not just survive, is they send an assignment at going to be a blend of both,” FNOL (First Notice of Loss) he said. “If you have not on a customer’s car until the started down the path of OEM body shop actually begins certifications, you have alwriting the estimate. ready started to lose the race.” The industry average is In addition to pursuing currently 5.5 days. “InsurOEM certifications, he said it ance companies want it to be Mike Anderson from Collision is critical to monitor and less than 1.6 days because Advice gave maintain your shop’s online they see a direct correlation CAA San Diego presence. He talked about enbetween the time it takes members tips on suring your business presence from FNOL to when the shop how to run a is consistently representing contacts the customer and besuccessful business your brand. Regardless of the gins writing that estimate,” search engine used – Google, Yahoo, said Anderson. “The longer the period Facebook, Bing, white pages or yelp – between FNOL and a shop beginning having a consistent and accurate listan estimate impacts what they pay on ing is critical to success. Anderson adbodily injury claims.” vised having the shop’s logo, shops Some of the MSOs he works with hours and website link accurate across have call centers that contact the vethe board. hicle owner within seven minutes of Websites such as www.yext.com when they receive an assignment. “If can provide information on how con- shops are taking up to 5.5 days to consistent your shop ranks in regards to your online presence. In order to “thrive and not just survive,” Anderson noted that the following are important to consumers – trust, empathy and direction (TED), while insurance carriers are looking for service, speed and accuracy. To meet these needs, Anderson recommended that shops focus on the three Cs – CSI, closing ratio and cycle time.

tact the customer, they can be assured that they are losing work,” he said. Another factor affecting CSI is whether the vehicle is delivered on time. “The number one thing that contributes to on-time delivery being missed is that we give them a false date to start with,” said Anderson. Although shops often feel pressured to give customers a date, one of the things Anderson said he learned from Cheryl Hart at 3M was to change our word tracks with customers and let them know that we will be able to provide a more accurate date once the car has been disassembled, the shop has received full authorization from the insurance company and find out when the parts are available. He stressed the importance of ensuring vehicles are repaired properly the first time and suggested using the asTech Scan technology from Collision Diagnostic Services to identify issues with a vehicle. After being hooked up to the car, the vehicle is connected to an OEM SCAN Tool in Dallas, Texas where they have factory-trained technicians who use OEM scan tools to

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CSI “If you want to thrive and not just survive, you need to give extraordinary, over-the-top, off-the-charts customer service,” said Anderson. “‘Good nuff’ is not good enough.” In addition to paying attention to how your customer is greeted, the appearance of your front office and the use of uniforms, one of the biggest factors affecting CSI is whether or not customers are kept informed via their preferred method of communication - text, email or phone -- while their vehicles are repaired. Sixty-three percent of customers surveyed prefer to receive text message updates, but this ranges depending on gender, age and demographics. He mentioned a new KPI (key

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provide relevant information. Another idea he shared is having an after-hours emergency number for customers. The recording should include information about whether the shop is open or closed; if it has a towing service and provide the phone number; the address of the shop as well as a nearby landmark; and where the key drop is.

Closing Ratio Anderson discussed the advantage of devising sales scripts to use when contacting customers. “The day after you deliver the vehicle, call the customer so you can ensure if there is a problem, you can head it off before the CSI survey is completed,” he said. He also recommended following up with customers after writing the estimate to ask if they have any questions as well as conducting sales training with staff. Anderson said that every good business does what he called “corporate espionage” to find out what their competitors are doing well and what they are struggling with. He encouraged attendees to conduct a SWOT analysis, checking the Strengths, Weaknesses, Opportunities and Threats of their business as opposed to the competition.

This may include looking at their Facebook page, website, online reviews, what OEM certifications they have and how they rank with insurance companies.

Cycle Time A year ago, Anderson said he would have recommended that in order to be successful in cycle time, a shop needed to repair vehicles at least two days faster than the market average, based on Enterprise’s Length of Rental ARMS Reporting. “Today, you need to be four days better than the industry average because everyone else has gotten that much better,” said Anderson. “Having a complete and thorough understanding of Enterprises ARMS reporting is critical to a shop’s success.”

Production In regards to production, Anderson said it will be necessary for shops to retain more labor gross profit in order to pay for OEM certifications and training. Otherwise, they won’t be able to afford it. “The body shop of the future is going to have to retain 65 to 70 percent gross profit unloaded without benefits,” said Anderson. This can be accomplished through bonus-based pay

38 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

plans, a team system, a tiered approach and labor rate increases. Adding more non-included operations to an estimate will also help a shop’s sales mix, said Anderson. One of his recommendations to improve additional labor hours per estimate is to utilize Automotive Service Association’s (ASA) not-included chart. The free reference chart highlights the “non-included” operations when installing new replacement parts. He also encouraged the use of estimatescrubber.com, which analyzes an estimate and shows what NOT included operations may have been overlooked on the estimate. It costs $25 per month for unlimited use. “The shop of the future is going to have to focus on more repair versus replace opportunities,” said Anderson. “We’ve got to look at some repair opportunities when we know we can do a quality repair. More labor equals more gross profit.” Anderson recommended purchasing a nitrogen welder for plastic repair since insurance companies are currently tracking repair versus replace on front and rear bumpers. In 2013, the industry average for rear bumpers was about 42 percent repair versus re-

place; front bumpers were 29.86 percent. That metric has since changed. Shops are now closer to 45 percent for rear bumpers and 32 percent for front bumpers. He encouraged shops to stay upto-date and educated as estimators. Some of the websites he has found helpful include www.boronextrication .com; www.drivealuminum.org; www .worldautosteel.org; and www.intlmag .org.

Finance & HR In order to be successful, data will continue to remain key. “Data is going to be very critical to you as an OEM-certified shop,” said Anderson. “If you don’t measure it, you can’t manage it.” The body shop of the future will use an accrual accounting system rather than cash, said Anderson. This means that they will adjust their work in process each month and reconcile prepayments with receivables. “Shops need to know how to manage cash flow and determine their ROI [Return on Investment],” said Anderson. He said that although he hopes he is proved wrong, he believes that parts price matching will no longer be availSee Body Shop of the Future, Page 42

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800-288-6985 301-498-6050 Dept. Hours: M-F 7:30-7; Sat 7-4 ron.malitz@ourismanautomotive.com

AC URA M ARY L AND

Tischer Acura Lau rel

800-288-6983 301-498-3322 Dept. Hours: M-F 7-6; Sat 8-4 wholesaleparts@tischerauto.com M ASSA CHU SETT S

Acura of Boston Brig ht on

800-254-1169 617-254-5400 Dept. Hours: M-F 8-5:30; Sat 8-5 bruce.fisher@acuraofboston.com N EW J ERS EY

Acura Turnersville Tu r ners v ille

888-883-2884 856-516-6060 Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com 40 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. MA S SAC H U S ET TS

NE W J ERSE Y

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LIA Honda Northampton

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York

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800-893-3030 856-692-4449

800-462-0056 (N.Y.) 585-586-4919

800-960-9041 717-848-2600

Dept. Hours: M-F 7:30-5:30; Sat 8-4 dstanisewski@liacars.com

Dept. Hours: M-F 6:30-5; Sat 7:30-3 dave@rossihonda.com

Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com

Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

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Clinton Honda An n a n d ale

Route 22 Honda H i l l si de

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973-705-9100

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Dept. Hours: M,Tue, F 7-6; W, Thu 7-7; Sat 7-4 chrish@clintonhonda.com

N o rt h P l a i n fi e ld

Lia Honda of Albany

908-753-1680

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800-883-0002 856-649-1584

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800-468-2090 412-390-2908

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Lia Honda of Williamsville W il l ia msv il le / Buffa l o

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Dept. Hours: M-F 7-7; Sat 7:30-3:30 babylonparts@aol.com

877-659-2672 716-632-3800

Brewster Honda

Dept. Hours: M-Thu 7:30-8; Fri 7:30-5; Sat 8-5:30 liaparts@liacars.com

Ma d iso n

845-278-4177 Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com

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Sussman Honda Ros ly n

800-682-2914 215-657-3301 Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

Dept. Hours: M-F 7:30-8; Sat 7:30-5:30 ekuznicki@raylaks.com

Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com

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Dept. Hours: M-F 7-7; Sat 7:30-5; Sun 8-3 anthony.perrone@hudsonhonda.com

Wex f ord

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800-826-4078 215-884-6285

Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

Dept. Hours: M-F 8-5; Sat 8-1 rendrick@sussmanauto.com

Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com

Park Ave Acura Ma ywoo d

888-690-7621 201-587-0028 Dept. Hours: M-F 8-6; Sat 8-3 jon.tangen@parkaveacura.com NE W Y O R K

Acura of Westchester We st ch est er

914-834-8887 Dept. Hours: M-F 7:30-8; Sat 8-4; Sun 9-4 acura.parts@yahoo.com

Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com

Smithtown Acura St. James

888-832-8220 631-366-4114 Dept. Hours: M-F 7:30-5:30; Sat 8-4 parts@smithtownacura.com

Lehigh Valley Acura

Davis Acura L a ngho r ne

866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 41

B-Tec Systems Releases The Infrared Handbook

The Infrared Handbook from B-Tec Systems was written by Peter Phillipson who has over 30 years automotive experience. Phillipson spent 18 years with Edwin Trisk where he was responsible for developing short wave infrared systems and global technical training. He has also been acting as a consultant for several infrared manufacturers in recent years. He has been working recently for B-Tec Systems in the USA, as technical sales & marketing manager (IR). Phillipson commented, “I have been writing educational pieces for several years, but finally found the time to write another book on infrared. It basically covers everything about infrared, what it is, how it works and also covers most of the applications you can use it for in the automotive refinish industry. I hope it will enable both distributors and body shops better understand infrared equipment and its benefits.” The book is available from BTec Systems. The electronic version is priced at $9.95. For information, call B-Tec corporate office phone (480)-621-5304 or email btecusaoffice@gmail.com.

Facebook Contest for New Flooring at School

The Collision Repair Education Foundation (CREF) and RustOleum are collaborating this spring on a Facebook contest that will help provide high school and college collision school programs with a professional appearance upgrade through the donation of epoxy floor coating. Eighteen schools that applied for the Education Foundation’s 2015 Makeover school grant, submitted pictures of their collision program floors. Industry members can then vote for a school by visiting the Education Foundation’s Facebook page and “Liking” the picture of their choosing. The picture that receives the most “Likes” by May 2 will receive RustOleum’s, RockSolid floor coating for their floors. “We’re proud and excited to contribute to such a worthwhile effort,” said Steve Gillmann, vice-president human resources, at Rust-Oleum. “We know that giving these students a chance to work in a professional environment can ultimately lead them to success in their careers.” For information, contact Brandon Eckenrode at 847-463-5244.

Continued from Page 36

Body Shop of the Future

able in a year or two because OEMS are realizing a decrease in their profits. “This system is not working,” said Anderson. “It is a band aid for an issue that is not being discussed.” It is for this reason he said parts discounts will continue to shrink. Therefore, he recommends shops focus on making more gross profit on labor. “If you want to maximize your gross profit, you need to focus on the 30-2020 sales mix to achieve the maximum gross profit,” said Anderson. This equates to 30 percent of sales coming from body, frame and mechanical labor; 20 percent of sales on paint labor; 10 percent of sales on paint materials; 36 to 38 percent on parts; and two to four percent on sublet. “If you hit this sales mix, you will make a 46 to 48 percent gross profit unloaded [without benefits], said Anderson. However, most shops are 26 to 28 percent body, frame and mechanical labor; 13 to 15 percent paint labor; 7 – 9 percent paint materials; 40 to 42 percent parts; and the remainder on sub-

let. This amounts to 43 percent gross profit. “If you do $100,000 a month in sales, that three percent difference is $3,000. If you do $300,000 a month in sales, that is $9,000 additional money to your bottom line,” said Anderson. He suggested looking at the possibility of bringing in some of a shop’s sublet in-house. “If your sublet is more than two percent of your sales, you need to ask yourself, ‘what can I bring in-house?’” This might include looking at more repair versus replace opportunities; more non-included operations to bump up the sales mix; more refinish operations and if the paint materials percentage is low, an invoicing system. While taking steps to become a successful body shop in the future, Anderson recommended aligning yourself with people who will help you grow. “Surround yourself with people who are positive, not negative, and have the same vision and hope,” he said. “In my opinion, it’s a bright future in the industry,” said Anderson. “I don’t think our industry is doom and gloom. It’s one of the most exciting times I’ve ever seen in my life.” For more information, visit www .collisionadvice.com.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 43

Alleged Admissions of ‘Price Fixing’ by State Farm and Progressive Employees Prompt New Filings in Multi-District Lawsuit by Stacey Phillips, Assistant Editor

In light of new evidence in the multidistrict lawsuit, on March 2 Eaves Law Firm filed a motion to reconsider the dismissal of the Mississippi antitrust complaint by Judge Gregory Presnell. Allison Fry of Eaves Law Firm pointed out that at the time the amended complaint was filed a year ago, they did not have access to the information they do now. This includes two statements, one from a State Farm representative and one from a Progressive representative where Fry said they admit to price fixing. “We have direct admissions of price fixing and other illegal acts,” said Fry, the litigation director and designated plaintiffs’ liaison counsel at Eaves Law Firm. On February 22 of this year, the trial court issued an order dismissing the plaintiffs’ claims for price fixing and boycotting under the Sherman Antitrust Act with prejudice, which means they cannot be refiled. Fry explained there are very limited grounds in which a court can reconsider an order. These include (1) an intervening change in controlling law; (2) the availability of new evidence; and (3) the need to correct clear error or manifest injustice. Therefore, the new information acquired by the Jackson, MS firm is grounds for reconsidering the case, she said. “Specifically, plaintiffs obtained a statement from a Progressive employee who stated unequivocally that body shops have no say in the setting of their own labor rates, that the insurance companies ‘get together at big meetings’ to set body shop labor rates, and that the insurance companies uniformly apply the labor rates agreed upon at these meetings,” according to court documents. “This representative even identified when the next such meeting was going to occur.” In addition, a State Farm representative provided the following statement in court documents: “State Farm intentionally suppresses and fixes body shop labor rates, and that State Farm’s labor rate survey is a sham to justify its intentional fixing of labor rates.” The anti-trust lawsuit was first filed in Mississippi by 20 auto repair

shops in February 2014 against 39 insurance companies. Eaves Law Firm subsequently filed more than 20 others. The lawsuits were eventually consolidated for pretrial purposes and the law firm now represents 500 shops across the country. In the lawsuits that have been filed, the plaintiffs allege that the defendants, “engaged in an ongoing, concerted and

Firm filed an objection to the magistrate’s report and recommendations in both Mississippi and Indiana. Fry pointed out that in the MS case, the court did not dismiss four of the tortious interference claims. “At this moment they are alive,” she said. “Unfortunately there is no final answer on that at this moment because of the very unusual nature where they separated the

“We have direct admissions of price fixing and other illegal acts” — said Allison Fry, the litigation director and designated plaintiffs’ liaison counsel at Eaves Law Firm.

combined intentional course of action and conduct to improperly and illegally control and depress automobile damage repair costs to the detriment of the plaintiffs and the substantial profit of the defendants.” The plaintiffs also claim that the defendants engaged in price fixing, compulsory use of substandard parts and boycotting shops that refuse to comply. Eaves Law Firm plans to file the same motion to reconsider in IN, MS, TN and Utah, citing the new evidence obtained. Meanwhile, the court is going through the claims on a rolling basis. “What is unusual about the current crop of orders is that the court has made a separation,” said Fry. “Other than the very first order two years ago, the court has handed over to the magistrate [Judge Thomas Smith] the duty to prepare a report and recommendation for all of the claims, state and federal.” Magistrate Smith has prepared the report and recommendation on the state law claims and District Judge Gregory Presnell entered an order on the federal claims, which Fry said is a break from their previous habit. The next step is to wait for the court to rule on the motion to reconsider, which Fry said can happen at anytime because there isn’t a specific deadline set. “If he does agree to reconsider and reverse itself on dismissal, then we will move forward with ordinary practices of litigation,” she said. “If he does not, we will appeal it to the 11th circuit.” In March of this year, Eaves Law

44 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

claims, federal vs state.” Tortious interference occurs when a person intentionally damages the plaintiff’s contractual or other business relationship. Although the report and recommendations issued by the magistrate judge stated that there are sufficient facts to move forward, Judge Presnell

will still make the final ruling. Eaves Law Firm plans to file an amended complaint in the states that the judge hasn’t dismissed yet, in order to include the new evidence. Fry wants shops to know that “…there is still a great deal of life to go here. We will be pursuing each and every avenue that is required, whether that is an appeal or additional motion to reconsider.” State Farm provided the following statement to Autobody News magazine: “Our court filings speak for themselves; we believe that the allegations made by the plaintiff are without merit. We will ask the court to deny the motion for reconsideration. We have nothing further to add at this time.”

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 45

The Legal View

A Primer on Diminution in Value Claims with Gary Wickert

One of the recurring questions Matthiesen, Wickert & Lehrer, S.C. (MWL) is called on to answer involves when and under what circumstances the insured suffering automobile property damage, or his or her subrogated automobile insurer, may recover for diminution in value of a damaged automobile. This article is intended to provide a global answer to many of the questions we have been asked on this subject. When a vehicle is damaged in an accident and then repaired, the resale value may be less than a comparable vehicle that has not been damaged. In other words, the damage results in a reduction or “diminution” in the market value of the vehicle, even after competent repairs have been completed. An insured’s claim for this reduction in value may be made against a third party that negligently caused the damage to the insured’s vehicle, or it may arise from a first-party claim against the physical damage coverage under

the insured’s own automobile policy. The term “diminished value” can be confusing. There are three types of diminished value: 1. Immediate Diminished Value: This is the loss in value that results immediately after an accident before any repairs are made. It is the difference in market value immediately before and after an accident caused by a negligent tortfeasor. In many states, this is the measure of damages for injury to personal property. 2. Inherent Diminished Value: This refers to the loss in value of a vehicle that remains after it is completely and professionally repaired. It is the loss of value that results from the simple fact that the vehicle has been in an accident. This type of diminished value is also known as “stigma damage.” Given two identical vehicles on a car lot, the one which hasn’t been involved in an accident is preferable to the one which has

Gary Wickert is an insurance trial lawyer and a partner with Matthiesen, Wickert & Lehrer, S.C., and is regarded as one of the world’s leading experts on insurance subrogation.

been damaged and repaired. 3. Repair-Related Diminished Value: This refers to the additional loss in value to a vehicle which results from incomplete or poorly-performed repairs. It could include simple cosmetic damages that remain after repair or major mechanical or structural deficiencies. The most common and widelyused form of diminished value is inherent diminished value. There are two types of inherent diminished value claims, both of which are discussed in this article:

1. First-Party Claims: These are claims made by the vehicle owner/policyholder against his or her own insurance company to recover the difference in the value of the vehicle before the collision and value of the vehicle after the damage caused by the collision had been repaired. This type of claim is usually governed by contract law and the terms of the insurance policy. When a

vehicle is damaged, a policyholder generally expects to be “made whole” by its first-party property insurer, but an insurer is legally responsible only to pay according to the terms of the policy.

2. Third-Party Claims: These are claims made by the owner of a vehicle against a third-party tortfeasor (person other than the insured and insurer) for negligently causing damage to the owner’s vehicle. This type of claim is governed by tort law.

First-Party Claims With regard to first-party claims, the Insurance Services Office (ISO) contract language (specifically the Limit of Liability Condition) arguably appears to cover only the Actual Cash Value (ACV) of the damage or the actual cost to repair the damage. There is often nothing in the policy language that would contractually cover any reduction in market value, even if the insured

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were able to prove the amount of reduction in value. On the other hand, the policy clearly allows the insurer to deduct for “betterment” or depreciation, although the burden of proof is on the insurer to demonstrate such depreciation or betterment. In physical damage claims, the policy allows the carrier to deduct for an “improvement” in value (i.e., betterment) due to repairs with newer parts, but will not compensate the insured for a reduction in value due to the same accident. There is a disparity among the various states regarding recovery of diminution in value in first-party cases. Insurance claims professionals should be aware of when and how the laws of each state deal with diminution in value. Georgia is in the minority of states which require insurers to pay the diminished value as well as the cost of repair of a vehicle even if the insured does not make a claim for the diminished value.

Third-Party Claims In third-party claims for property damage to automobiles that are the result of a collision for which a third party was at fault, the measure of damages is traditionally, but not al-

ways, the difference between the market value before and after the collision (“diminution in value”) or the reasonable repair value, whichever is greater. Such third-party diminution claims have generally been found by the courts to be covered by automobile insurance since the measure of damage in tort claims (which the insurer promises to pay) is the difference in the value of the property before the loss and the value of the property after the loss. The Restatement of Torts § 928 states as follows: Where a person is entitled to a judgment for harm to chattels not amounting to a total destruction in value, the damages include compensation for: (a) the difference between the value of the chattel before the harm and the value after the harm, or at the plaintiff’s election, the reasonable cost of repairs or restoration where feasible, with due allowance www.autobodynews.com for any difference between the original CHECK ITafter OUT! value and the value repairs. It should be remembered that diminution in value of a vehicle after repairs have been conducted can be difficult to prove and, in some states, the burden is quite high. In some cases it may be necessary to actually sell the vehicle in its damaged condition in order

to establish its post-crash market value or, at a minimum, engage an expert appraiser to provide a detailed report. A comprehensive summary of how first-party and third-party inherent diminished value claims are treated in all 50 states can be found at www .claimsjournal.com

Gary Wickert is the author of several subrogation books and legal treatises and is a national and international speaker and lecturer on subrogation and motivational topics. He can be reached at gwickert@mwl-law.com. Thank you to the Claims Journal for permission to reprint this article.

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Mercedes-Benz USA Reveals Plans for New HQ in GA

Mercedes-Benz USA (MBUSA) has unveiled the first rendering of its new Atlanta headquarters in Sandy Springs in GA. The company plans to break ground in the spring of 2016, with a target completion date of early 2018.

Rendering of planned Mercedes-Benz headquarters in metro Atlanta

MBUSA, which moved to a temporary facility in July 2015, will conPromote business with struct a new, your state-of-the-art headquarters facility on aarticle greenfield site loan exclusive featuring cated at the corner of Abernathy and yourroad, products or services. Barfield near the intersection of Georgia 400 and Interstate 285. The 225,000 sq. ft. headquarters will be located on a 12-acre campus at the south side of the 76-acre property, formerly owned by Glenridge Hall. The company Call for details! said the four-story building will contain innovative architectural elements designed to800-699-8251 provide a performance-oriented and collaborative environment.

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AAA: Drivers Spend $3B on Pothole Expenses a Year by Mark Saunders The Connecticut Post

Connecticut drivers will want to drive more carefully in the coming months, according to a study released by the American Automobile Association (AAA) Feb 22. As the winter season slowly begins to thaw out, Connecticut roads will see the lingering brunt of this past winter’s rain, snow, and ice. AAA estimates that potholes in our country’s roads cost U.S. drivers $15 billion over the last five years, or $3 billion annually on average. Before you assume most drivers aren’t affected by potholes, AAA also found that 15 percent of motorists surveyed said they have had vehicle repairs resulting directly from pothole damage over the same time frame. Of that group, 20 percent are drivers from the northeast. On average, drivers said they had to shell out around $306 for potholecaused repairs, and experienced pothole-related damages three times over the last five years. While drivers 3544 years old were most likely to incur pothole-related damages, those 45 and older were the most concerned segment of drivers when it came to pot-

hole damages. Vehicle damage specifically reported included punctured tires, bent wheels, and suspension damage. AAA advised drivers and local governments to focus on minimizing these easily obtainable damages.

Credit: Brian A. Pounds, Connecticut Post

“AAA cautions drivers to remain alert to avoid pothole damage, and urges state and local governments to fully fund and prioritize road maintenance to reduce vehicle damage, repair costs and driver frustration,” AAA said. To acquire the data, AAA performed telephone surveys nationally between the later half of 2015 and early 2016. the combined surveys in-

48 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

cluded over 2,000 drivers living in the U.S. The Connecticut Department of Transportation reported last year that they estimate the state’s level of poor road conditions will rise from four percent to 23 percent over the next 30 years if state funding levels remained the same. They continued on to say the state’s level of pavement in less than acceptable condition would also rise from 47 percent to 71 percent over the same period. Connecticut currently invests $105 to $135 million annually to maintain and repair pavement needs of statemaintained roadways. Pothole damage can happen anywhere, thankfully AAA has a few easy to follow tips on navigating hazardous roads and vehicle care to minimize risk and damage. Click through the slideshow on their website to learn more. If you see or know of any potholes in your area, let us know in the comments section or visit our pothole database to report it. Thank you to the Connecticut Post for reprint permission.

Senate Passes Aftermarket Parts Legislation in NH

New Hampshire Senate Bill 436, introduced by state Sen. Nancy Stiles, R-24, requires an insurer to disclose whether or not an estimate has been prepared based on the use of aftermarket parts. Any insurer who fails to provide the disclosure would be prohibited from requesting or requiring the use of aftermarket parts. The bill would also prohibit an insurer from requiring or specifying the use of aftermarket parts on certain leased vehicles, vehicles less than two years old or vehicles with fewer than 30,000 miles. In a letter to New Hampshire state senators, ASA stated, “We are writing today in support of Senate Bill 436. This legislation is good for consumers, good for shops and consistent with trends in other jurisdictions.” Senate Bill 436 passed the New Hampshire Senate March 3 and is currently before the House for further consideration. To view the text of the legislation, visit www.Taking TheHill.com For information about ASA and membership, visit www.ASA shop.org or call (817) 514-2900.

www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 49

Shop Strategies OH Auto Body Shop Benefits from Hiring & Training Students with Stacey Phillips - ASSISTANT EDITOR

In business for more than 56 years, Brown’s Body Shop in Zanesville, Ohio has 15 employees, including two students who work on a part-time basis. Autobody News spoke to Dusty

2007. I wanted to get involved in order to help train young people coming into the field the correct way. In 2010, I hired another student who is now our head painter.

partment where he disassembles incoming vehicles. Both are paid positions.

Q: One major benefit of hiring stuA: dents is the fact that they have not developed any bad habits. A chalWhat is the benefit and challenge of hiring students?

lenge is that they require a lot of hands-on instruction and supervision.

What is your advice to other body shops considering using students to help out in their facility?

Located in Zanesville, Ohio, Brown’s Body Shop has 15 employees, including two students who work there part-time

Brown, the owner of the auto body shop, about the benefits of hiring students to assist with their collision repair work.

When did you first begin hiring students and what prompted your decision?

We first hired a student from Mid Ohio Vocational School in A: East

a great way to train them the proper way.

How often do the two students Can you tell us about the reQ: work at Brown’s and what are Q: cent relocation of your shop their primary responsibilities? They work every day after A: school and all day on days that school is not in session. One student

works in our paint department prepping cars, masking parts and doing final clean up before paint. The other student works in our tear down de-

Recent Poll Finds Tie Between Car Driven and Presidential Candidate Supported

Prius owners were more likely to support Ted Cruz and Hilary Clinton than the general population, while Dodge owners favored Donald Trump, and Honda Fit and Subaru Forrester enthusiasts “Feel The Bern,” according to data generated by car-shopping site BestRide and nationally syndicated radio program CarTalk. The findings stem from a poll of more than 10,000 respondents, who were asked what car they drive and which presidential candidate they backed. In a report issued February 23, the following results were determined: Toyota Prius owners were 40% more likely to support Clinton than the general population. Prius owners were 126% more likely to support

I would encourage them to do A: so. It is hard to find good quality technicians in this field and this is

Cruz than the general population. Dodge owners favored Trump 50% more than the general population. Bernie Sanders and Clinton supporters registered the highest EPAestimated fuel mileage, tied at 28.5 MPG. Republican candidates had the lowest average, with Trump supporters at just 23.6 MPG, and Marco Rubio and Cruz-backers tied at 24.7. As for highest MSRP, supporters of Green Party candidate Jill Stein drive cars averaging almost $40,000. They’re also the least likely to drive what most Americans do, with a paucity of Honda Accords, Ford Fusions and Toyota Camrys. Among electric car owners, 86% of responses supported a Democrat and 14% supported a Republican.

50 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

and some of the new technologies that you added?

My father started the business A: in 1960 in a shop the size of a two-car garage. I took over the busi-

ness in 1996 when we built an 8,000-square-foot shop. In September of 2015, we moved into our new 19,000-square-foot state-of-the-art facility.

The new shop has two Nova Verta 31 foot heated downdraft with wind system paint booths; four Car-O-Liner frame machines with computerized Car-O-Tronic measuring systems; three phase-resistant welders; and drive-through estimating. It is also a complete Sikkens Autowave water collision repair center. Dusty Brown, owner of Brown’s Body Shop, can be reached at 740454-1655.

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Auto Body Shop Owner in Texas Restores Vehicle for Car Donation Using OEM Parts by Stacey Phillips

When auto body shop owner Burl Richards presented a set of keys and an SUV to Becky Whiteside, he said it was a great feeling to give back to someone in need. The owner of Burl’s Collision Center in Henderson, Texas, held a con-

Becky Whiteside received a 2008 Mitsubishi Endeavor from Burl’s Collision as part of a contest the auto body shop held

test in late 2015 inviting the local community to write a short summary about why they needed a dependable vehicle. One of the managers in his shop had suggested the idea, after hearing about a body shop in Arkansas that had done something similar. “I thought to myself, ‘We have to do this,’” said Richards.

Applicants had the following criteria: they had to be a single mom, have a job or actively searching for one, include a resume and write why they needed the car. Richards received 10 applications and local Lions Club members in Henderson assisted in the decisionmaking process. “It was a hard decision and I wish we could have done this for every one of them,” said Richards. Whiteside, a single mom, was presented with the vehicle in December 2015. The SUV had originally been in a front-end crash. Richards said the insurance company did not want to repair the vehicle or pay the storage fees, and it was deemed totaled. He talked to the insurance company about giving the car away after it was repaired. “They were very surprised and said it was a great thing that we’re doing and sent the title ASAP,” said Richards. Ten of his employees spent about two weeks restoring the 2008 Mitsubishi Endeavor. “They really embraced the idea and were excited about doing it,” said Richards. “They worked after-hours as well and just enjoyed the entire process.” Local businesses also showed their

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Richards, president of the Auto Body Association of Texas (ABAT), said they made it a priority to use OEM parts for the vehicle and his vendors were happy to help with pricing. “There was never a thought of using aftermarket parts,” said Richards. “With the quality and fit issues that we see with using aftermarket parts, and the fact that we request OEM every day from insurance companies, I felt it would be hyp-

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(l to r) Sabrina and Burl Richards of Burl’s Collision Center presented the keys and SUV to Becky Whiteside

ocritical to use anything other than OEM. He said that he wanted the recipient of the vehicle to have confidence that it was repaired properly using OEM parts. “I hear insurers tell us all the time that we are greedy because we want to be paid for processes and procedures that are necessary to restore vehicles to their pre-loss conditions,” said Richards. “It’s good to know and they know, it’s not all about making money. We chose OEM parts, we didn’t cut corners, we repaired the vehicle properly, and we spent free time after hours because it would help out a needy family. You can’t put a price on that.” His advice to other shops considering doing something similar is to do it! “Your employees will embrace it and it will give them a great sense of accomplishment. “Your local community will appreciate it as well,” said Richards. After being in business for 18 years, he said the surrounding community is very supportive of his business and the employees every day. “It is a great feeling to share your blessings with others, and I think it is our responsibility to give back to those in need.”

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Mirka USA Introduces Aquastar® Abrasive

Portacool Introduces New Jetstream™ Coolers

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Mirka USA recently introduced Aquastar® to their abrasives product line. Aquastar is a film abrasive providing flexibility, and durability for hand sanding, either wet or dry, accoding to a company press release. Aquastar® was developed with a pattern consisting of multiple abrasive zones surrounded by interconnected channels. This channel system provides flexibility while minimizing the amount of water used in the sanding process, allowing debris to flow freely away from the abrasive, according to a company press release The pattern design also allows Aquastar® to be used in any direction. Aquastar® can be used for wet sanding of clear coats and primers, automotive OEM applications, mold and plug sanding in Marine applications, dry sanding small areas and spot sanding. For more information, visit: www .mirka.com/en-US/us/

The new Portacool Jetstream™ series of portable evaporative coolers is engineered to generate airflow and provide cooling options for a variety Original BMW Parts of hot working environments. The Portacool Jetstream™ 240, 250, 260 and 270 are equipped with KUUL Comfort™ evaporative media to provide maximum cooling comfort, bmwusa.com according to a company press release. Available in four sizes, there is a Jetstream portable evaporative cooler option that ranges from 1,125 Original BMW Parts to 5,625 square feet. Some of the features include: ● Equipped with KUUL Comfort™ evaporative media, the highestquality evaporative media available and made in the USA exclusively bmwusa.com for Portacool products. ● Liquid level indicator with automatic pump shut-off ● Large drain allows for easy, effective cleaning ● Built-in handles for easy mobility; heavy-duty casters ● Comes with Portacool Protect™ lifetime warranty on evaporative cooler housing against manufacturing defects; three year warranty on all electrical components Visit Thewww.portacool.com. source for timely

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 53

LKQ Hosts Charity Bike Build at Three-Day Summit girl’s and boy’s bicycles. Teams competed to be the first LKQ Corporation hosted a Charity one to finish assembling two bikes, in Team Bike Build Challenge on Thurs- perfect order. Full inspections were day, March 10 as part of its annual conducted on all of the bikes. leadership conference at the Hyatt Re“I thoroughly enjoyed the Bike gency in Atlanta, GA. Build,” said Patrick ‘Skip’ Stevenson, At the conclusion of the Bike of Keystone Automotive Operations, Build, LKQ presented new boys’ and one of LKQ’s seven subsidiaries. “I girls’ Huffy bicycles to the Metro Atthink it speaks to LKQ’s extraordinary lanta Chapter of the Boys & Girls Club commitment to team culture and environment.” Keystone Automotive Operations specializes in aftermarket automotive equipment, accessories and vehicle enhancements, and was acquired by LKQ in 2014. Sponsors for the Agents of Change Charity Bike Build included Caliber Collision, Gerber Collision and Service King. Caliber Collision is headquartered in Lewisville, Texas and LKQ presented new boys’ and girls’ Huffy bicycles to the Metro Atlanta Chapter of the Boys & Girls Club of America. has more than 376 repair cenCredit: Javier Rivas, LKQ Multimedia Specialist ters. Gerber Collision and Glass of America. The Boys & Girls Club is headquartered in Skokie, Illinois with will donate the bikes to children in 316 repair centers and has been in the inneed in the metro Atlanta community. dustry for over 75 years. Service King is The Bike Build was only one part headquartered in Richardson, Texas with of LKQ’s three-day annual leadership 292 locations throughout 23 states. conference, titled “Agents of Change.” The summit brought together company Relationship Building in Action executives from all over North Amer“We came together this week to see the ica to further the LKQ mission to ennumbers as well as review and enhance hance teamwork, collaboration and the vision for LKQ. But we’re also here commitment within the organization. to develop relationships with our colBrand new children’s bikes taunted leagues around the country. We might from within their boxes along the walls speak to many of them frequently but of the conference room. By mid-afterwe never get to meet them otherwise,” noon on March 10, event organizers said Stevenson. paired company leaders with conference Samantha Brill, marketing assomembers into teams. They were diciate with LKQ, said the three-day rected to break open the boxes, assemconference was an opportunity for reble the parts, and transform them into lationship building in action. by Diane Eaton

NACE | CARS 2016 Registration is now OPEN

NACE | CARS 2016 registration is now open for attendees and expo visitors. The 34th annual event, scheduled August 9 through August 13, continues to offer live demonstrations, exclusive OE training, world-class exhibits and networking. Reserve your place in Anaheim, CA for #NACECARS16 with conference and expo passes. You may also secure your spot for special programs featuring new and exclusive content including: ● The exclusive MSO Symposium ● The Technology & Telematics Forum ● The Service Repair Leadership Forum

● The Young Technicians Symposium program This year’s sessions have also expanded. Programs will include tracks for Heavy Duty (first time ever), as well as Management / Leadership, Technology & Telematics, Demos, MSO, I-CAR, Technical, and OEM Training (with record levels of commitment for 2016). Additional session details will be released soon. After completing registration, you will have the ability to create your personalized agenda when the full list of sessions is released. For more information and to register, visit www.naceexpo.com

54 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

“The goal of the Bike Build Challenge is to unite executives and community through teambuilding,” said Brill. “Each team had to work together and figure out how to put the bikes together as partners. Everyone had fun and everyone benefited!” This year’s conference was arranged to gather company leaders under one roof to discuss past, present and fu-

is focused on influencing change. We are transforming how we do things and how things are done,” said LKQ Multimedia Specialist, Javier Rivas. With nearly 570 facilities worldwide, LKQ Corporation is a global provider of recycled and remanufactured mechanical parts. The company said it is dedicated to growth with over 200 company acquisitions and roughly 6.7 billion in revenue as of 2014. Brill said LKQ’s civic dedication is also fundamental to its mission, with an emphasis on relationship building and environmental integrity. The company’s Green Initiative focuses on recycling, waste elimination and reduction of greenhouse emissions. During the LKQ leadership conference, teams assembled LKQ offers a broad range of bicycles as part of the Charity Team Bike Build Challenge. Credit: Javier Rivas, LKQ Multimedia Specialist replacement systems, compoture. Participants were asked to step outnents, equipment, and parts to repair and side of their comfort zones to seek new accessorize automobiles, trucks, recreways to demonstrate industry leadership ational and performance vehicles. In adin operations, community involvement dition to its presence in North America, and environmental responsibility. LKQ has operations in Taiwan, Belgium Brill said LKQ’s vision is to leave and France. In 2013, LKQ surpassed $5 a positive imprint on the industry. “LKQ billion in revenue.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 55

Lean Operations

How to Hold People Accountable with David Luehr

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

If you struggle getting people to do to prove they understand what is exwhat you want them to do, it may be pected of them. Again, don’t make the time to learn a few new accountability assumption that your team knows what with Jennifer Driscoll-Chippendale skills. Many collision shop leaders are is expected of them, you have to overfrustrated that people seem to ignore communicate what you expect. them when asked to perform simple tasks such as picking up after themKnow how to hold an accountability selves, or living up to quality stanconversation dards. This disregard for the rules may One of the things that leaders hate the with asErica come across to leaders a lack Eversman of remost is, unfortunately, having those litspect, and sometimes it could be, but tle talks with people that aren’t living very often these indiscretions are a reup to expectations. Leaders need to sult of insufficient leadership skills. learn to become comfortable being unThere is a lot to know about mo- comfortable and go ahead and have tivating and keeping an engaged work that talk! If you have done a good job force. letting people know what is expected with Here are some tipsEd thatAttanasio will get of them, these conversations are much you started in the right direction and easier to have. Especially if the stankeep your team doing the right things dards are in writing. What makes these in order to win: “coaching” conversations difficult is when the discussion is based on the arDon’t assume your team knows what bitrary, such as “Dan, I don’t think you you expect with Ed Attanasioare communicating with your cusMuch of the frustration felt by my tomers well enough.” The conversation clients are brought on by themselves is much easier and effective when you because they don’t have written stanare explaining a gap in the employee’s dards. Standards take on a whole new current performance versus a known level of seriousness when in writing. I standard. “Dan, our company values highly recommend creating a simple excellent customer communication as written “playbook” to document how you know, and you know our standard with Ed Attanasio you want repeatable actions performed is to contact our customers every two in your collision center. Once this indays as outlined in our playbook. Dan, formation is in writing you can sit please explain to me why this behavior down with your staff and clearly comis not taking place?” municate what the expectations are. Some of the best collision companies Inspect what you expect with Victoria Antonelli even ask their staff to take a short test Many of my clients find that inspect-

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ing or auditing their systems and standards pay huge dividends. Many of the world’s fastest growing MSOs have found regular periodic audits to be the real secret sauce to standards being consistently met. Once deviations are discovered, you should provide immediate feedback through employee coaching or holding a company meeting to reinforce the standards. Again, you must over-communicate the standards and what is expected.

Why consistency is the key Most people actually prefer structure. Like children, many of us may not like being held accountable at first, but almost everyone learns to appreciate the consistency and healthy structure of a company that lets people know what they are supposed to be doing and how they should be doing it. Far too many leaders simply hire people and stick them in a position with the full expectation that all the experience they have

accumulated over the years at other body shops will translate into meeting the expectations at your company. This rarely works well! You have the choice to run your business or let the employees run it their way. Consistency also means that you have to quit turning your head the other way when standards are not being met. If you choose to keep stepping over your employee’s pile of tools and parts laying on the shop floor instead of correcting the behavior immediately, you will have a difficult time getting anyone to take you serious as a leader. Your job is to be a leader, not a buddy! Take back control of your business by setting clear expectations, and holding people accountable in a professional way! If your company would like help with leadership training or creating and documenting standards please contact us today. Visit www.elitebody shopsolutions.com for more information.

Northwest Associations Web Window

Pro Spot Display at 2016 I-CAR Instructor Conference

Pro Spot International, US manufac- ments and questions on rivet bonding, turer of repair equipment and tools for MIG brazing, spot welding and more. Pro Spot has been working with Ithe collision repair industry, sponsored with Chasidy Rae Sisk the 2016 I-CAR Volunteer & Instructor CAR for many years and offers I-CAR Conference, March 10-12, in Orlando, Industry Training Alliance courses, including squeeze-type resistance spot Florida. Pro Spot displayed the updated welding (STRSW) and MIG welding. The I-CAR Volunteer & InstrucPR-5 Riveter and its new extension arms. The company said the new rivet tor Conference offered opportunities gun features an adapter for quick, easy for training, networking, interactive with changing of arms, new Ed flowAttanasio form dies, sessions and more. and more. In addition, Pro Spot representatives answered questions about equipment, including spot welders, FOLLOW US ON aluminum repair equipment, MIG welders and plastic welders. : Product Support Manager, Bob Pluth, was on the I-CAR Joining Ed Attanasio Method Panel,with discussing advance-

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Complete Agenda Released for ASA Training in Philadelphia The Automotive Service Association, with the support of ASA Pennsylvania, has released the complete agenda for management and technical service training taking place in Philadelphia, Pennsylvania, at the DoubleTree Airport Hotel April 8-9. These events will take place on Friday and Saturday, bringing a full day management session dedicated to shop owners and managers on Friday and service repair training to the technicians and service advisors on Saturday. Both days include AMI-approved course content. Bob Greenwood, president/CEO, Automotive Aftermarket E-Learning Centre Ltd., will lead the management training on Friday. His workshop, entitled Profitability Secrets That Dramatically Build Your Bottom Line, has been approved for credit by AMI. Topics that will be covered include: ● Important formulas and business guidelines that focus on Net Income development. ● The new approach required to meet staff competency, economic, and technology realities. ● The key daily measurements to ensure the shop is on track while engaging staff to stay focused on results. ● The right sales with the right car

count for your shop. Attendees participating in the management training will also have the opportunity to participate in the technical training sessions the following day at no additional cost. Technical training, taking place on Saturday, April 9, will include sessions with Donny Seyfer, co-owner,

Seyfer Automotive, Inc.; Scot Manna, owner, MB Automotive Inc.; and Bill Haas, president, Haas Performance Consulting. Attendees will have the opportunity to choose their sessions with each of these trainers. Highlighted training topics include:

Donny Seyfer presents: ● 21st Century Cooling System Design ● Preparing to Service Connected Car (AMI-Approved) Scot Manna presents:

● Logical Diagnostics ● Mass Airflow and Fuel Trim Diagnostics

Bill Haas presents: ● From Order Taker to Sales Maker (AMI-Approved) ● Customer Care and Communication, Deliver an Exceptional Experience (AMI-Approved) For both days, networking opportunities, refreshment breaks, breakfast and lunch are included. All attendees are encouraged to join for the networking reception, taking place on Friday, April 8 at 6 p.m. These regional events offer an opportunity to keep your team current, efficient, and to help your business grow. ASA has scheduled these events to minimize shop downtime through weekend programs and reduce travel costs by bringing the training to you, getting the most valuable and requested training for the region, including AMI Certification offered for many of the classes. For more information about ASA regional events, or to register for the Philadelphia program, visit https: //www.regonline.com/builder/site/ custom.aspx?EventID=1821963&_i= 4YoBwF0k4cU%3d

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Tsunami Compressed Air Solutions Launches The Rove

Tsunami Compressed Air Solutions, a company that specializes in providing compressed air filtration and dryer products, announced a new product in its line of clean air solutions. The company, based in Minnesota, said The Rove was created to provide the industry with a versatile filtration and drying system that can be easily wheeled across a shop or transported to another location where dry air is required. “Its unique quick-connect design makes the system extremely user friendly and provides waterborne-ready air for point-of-use applications,” said Steve Thompson, sales manager, PBE. He said that depending on the facilities air consumption, The Rove can provide down to -80° dew points for the entire facility. Developed for release in March of 2016, Steve Thompson, said that The Rove is changing the way body shops deliver dry air to their applications. The company’s other products include the Ultra Drying System, Moisture Minder Automatic Drain, and Ultra-flo Spray Hose. For information, contact Chase Marshall, cmarshall@gosuburban.com, 800-782-5752 or www.tsunami.us.com.

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H&V Collision Centers Sponsors Easter Celebration for Albany N.Y. Boys and Girls Club

H&V Collision Center, an independent, family-owned collision repair facility in the New York Capital Region, hosted a major Easter celebration at the Boys and Girls Club in Albany. The Easter party at the Boys and Girls Club in the state’s capital city continues H&V’s tradition of giving back to the community. The Boys and Girls Club in Albany have served and supported youth from inner-city neighborhoods for generations. H&V has partnered with families and organizations to support the health, safety and education of youth in the Capital Region, including donation of refurbished cars for families with children dealing with medical issues. “We are very excited to team up with an outstanding organization like the Boys and Girls Club of Albany and sponsor a big Easter celebration that was fun and enjoyable for the kids and their families,” said H&V’s Vartan Jerian Jr. “We have been proud to support many worthwhile organizations and families with children. H&V is very excited about this new partnership with the Boys and Girls Club, and to support the outstanding work done by Boys and Girls Club in our region and across the

country,” added Jerian. The upcoming Easter celebration featured food, refreshments and a guest appearance by the Easter bunny. All 60 of the program’s children had the opportunity to sit with the bunny and get their picture taken. Each child also received an Easter gift from the collision center filled with special treats. H&V Collision Center was started in the early 1970s by Vartan Jerian Sr., and today includes seven locations throughout the Capital Region. H&V prides itself on customer service, and has earned a customer satisfaction ranking of over 97 percent. H&V supports many community and charitable organizations. H&V also implemented new technology and practices to make its four locations more environmentally safe. H&V has also implemented modern management practices that reduced repair times and made its shops more efficient. Since the founding of H&V Collision Center 45 years ago, H&V has expanded from a two-man operation on Oakwood Avenue in Troy, to the largest independently-owned collision repair business in the Capital Region with seven locations.

Cops: Auto body Shop Owner in PA Attacked Reporter

over and spit at O’Connell, which was caught on video and posted on FaceThe owner of an auto body book, the reporter wrote. shop is charged with as“We are pressing charges saulting a Fox 29 news reto send a message,” O’Conporter and cameraman. nell wrote. Police Superintendent According to Chitwood, Michael Chitwood said the the news team had received incident occurred about 5 permission from an owner p.m. on March 1 outside of a vehicle on Kathopoulis’ Modern Auto Crafters in the lot to use it in the pothole 7000 block of West Chester segment. Peter Kathopoulis, Pike. Kathopoulis is charged owner of Modern According to Chitwith simple assault, harassAuto Crafters wood, the news team was ment and disorderly conCredit: Delaware doing a story on potholes County Daily Times duct. His bail was set at and damage caused to ve$30,000 unsecured. A prehicles when Peter Kathopoulis con- liminary hearing was scheduled March fronted them. 14 in Magisterial District Judge Harry “A business owner didn’t want J. Karapalides court. us shooting a story that had nothing We would like to thank Delaware to do with him,” Fox 29 reporter County Daily Times for reprint perChris O’Connell posted on his Face- mission. book page on the night of March 1. According to O’Connell’s post, he “tried ripping the camera” out of photographer Dave Eizen’s hand. FOLLOW US ON He also allegedly hurled threats and : threw slurs. Then, as O’Connell was on the phone to 911, Kathopoulis walked by Delaware County Daily Times

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 59

Santa Rosa, CA-based G&C Auto Body Doubles Shops and Sales in Five Years by Jeff Quackenbush, The North Bay Business Journal

G&C Auto Body has doubled sales and locations in the past five years, as a new Sonoma Valley spot gives the company 10 shops in four North Bay counties. The Santa Rosa-based company run by the Crozat family is preparing to open a shop at 19285 Sonoma Hwy., a 4,500-square-foot former tire and automotive building purchased in the fall for $1.7 million. Renovations and tenant improvements added another $700,000 to the project, led by general contractor Pacatte Construction of Santa Rosa. This new location comes during a spurt of rapid growth, according to Shawn Crozat, oldest son of cofounder Gene Crozat and chief operating officer. “We added stores and kind of went on steroids for a few years, and then we needed to figure it all out and dial it in with growth,” Shawn Crozat said. G&C (gandcautobody.com) started in 1972 in Santa Rosa then expanded to San Rafael almost two decades ago and Petaluma a few years later. Next came Windsor in late 2010, Novato and Rohnert Park in 2011, Ukiah and Fairfield in 2012 and Vacaville in 2013. Revenues last year were $43 million, passing the forecast by $40,000, Crozat said. By comparison, sales in 2011 were $22 million. Same-store revenue growth was 10.5 percent last year and 9.8 percent in 2014. That’s a standard retail metric for comparing location performance without the new-store sales spike. The new shops boosted overall revenue growth by 22.5 percent in 2013, 27.5 percent in 2012 and 19 percent in 2011. The Sonoma location is expected to contribute $2 million in annual sales after one year, Crozat said. The four starting employees in the six-bay shop would increase the company workforce to 200-plus. “We kind of feel it’s a market in which people have to drive out of town

to have their car fixed,” he said about Sonoma Valley. “And it’s the only body shop in the main populated area directly on the main highway.”

A Decade Coming A Sonoma Valley location has been 10 years and four attempts in the making, Crozat said. The first try was a decade ago but didn’t work. The second attempt was four years ago. Though it, again, didn’t come together, one trip

G&C Auto Body opens its 10th location in Sonoma, seen in this architectural rendering, in early 2016. Credit: G&C Auto Body

to Sonoma Valley led to an extended scouting mission in Solano County and a back-of-the-napkin deal in a coffee shop for the Fairfield location, now G&C’s third-most-profitable. The latest, successful try came this past summer. On previous site-selection trips to the valley, Crozat had eyed the 19285 Sonoma Hwy. building, then occupied by McLea’s Tire & Automotive Centers (mcleastire.com). A mutual friend at a local radio station where G&C and McLea’s advertise told Crozat that McLea’s had relocated staff and equipment from the Sonoma shop in early July to a justopened Windsor location. McLea’s President Les McLea told the Business Journal he recommended that the Crozats buy the Sonoma building instead of rent it. The property was in escrow within a week, with closing contingent upon securing use permits for the project. Crozat Family Properties LLC purchased 19285 Sonoma Hwy. from Gary and Terrie Heon on Sept. 14. McLea said he didn’t renew the

Sonoma lease because of a dispute with the property owner over a worker injury and increased workers’ compensation insurance costs. “We outgrew it,” McLea said. “It was too confined for us, and parking was terrible with two parking spots for the 20 to 30 cars a day coming in to be worked on.” McLea has a real estate agent scouting for another location in the valley, but alternatives are smaller than desired, he said. “We have five stores on [Highway] 101, and they’re within 25 miles of each other, so we pretty much have Sonoma County covered for now,” McLea said.

Expansion To Napa G&C also has been looking for opportunities in Napa Valley for years, but nothing has come together yet, Crozat said. “In our business, usually you have to buy somebody — a competitor — or find a need in the market,” he said. “Sonoma has that need, so it works out great. Napa doesn’t, so what you need is someone to sell. In our industry, a lot

of owners in Napa are not old enough to sell their business.” Valuation of the business and the potential for proceeds from a sale to fund retirement is key to that calculation, he said.

Colliding With Industry Consolidation But G&C isn’t the only company looking to expand in Northern California by acquiring collision-repair businesses. In the past several years, companies backed by large investment funds have been buying shops. For example, Richardson, Texas-based Service King Collision Repair Centers in November 2014 bought Car West Auto Body, which had seven California shops. Backed by The Blackstone Group and The Carlyle Group, Service King now has 290 locations in 23 states, including 29 in California, and topped $1 billion in revenue last year. “Our industry is consolidating like crazy right now,” Crozat said. “Our business is not for sale. We love what we do — and our business and our community.” We thank The North Bay Business Journal for reprint permission.

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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.

Mike Anderson in 1996, Incomplete Estimates, Feather Prime and Block, PartsTrader with John Yoswick

ers an opportunity to discuss issues 20 years ago in the collision repair “without outside interference or fear industry (April 1996) “We are our ownwith worst enemy. Every retribution” from other segments of Chasidy RaeofSisk day I try to collect for color sand and the industry that participate in most buff or other procedures, only to be told other industry events and discussion. that now one else charge for them. You Shop owners and representatives may say I am a fool when I tell you that of SCRS state affiliate associations atI believe insurers when they say this, tending the event voiced support for but you are a bigger fool if you do not three “resolutions” created during the Chasidy Raemeeting. Sisk believe them. Thiswith industry is made up of cowards, people who talk the talk Attendees unanimously voiced but don’t walk the walk. Wise up. Insupport, for example, for efforts to desurance companies are only going to clare total loss vehicles “unrepairable” pay for what they are asked for or what and salable only to dismantlers if they the industry demands. are less than 8 years old and have dam“State Farm is not necessarily our age exceeding 100 percent of their with Take Chasidy Raevalue. Sisk industry’s worst enemy. payment of claims, for example. Does State Auto recycler Herb Lieberman Farm stretch your receivables out over said his industry has introduced such 30 days? I’m not saying State Farm legislation nationally but the bills have pays better than all other companies, never moved out of legislative combut let’s give credit where credit is due. mittees. “If you want to getChasidy angry with “Of the vehicles declared total with Rae Sisk someone, get angry with the guy down losses and removed from repair facilithe street who doesn’t charge for the ties to salvage pools and sold as total items you do and should charge for. loss vehicles, our The guy who tapes up door handles, industry is only purdoesn’t know the P-pages, doesn’t chasing 30 percent withbusiness, Chasidy Rae Sisk know his cost of doing doesof those vehicles, n’t charge for colorsand and buff. and that has an ad“We need to clean up our act and verse effect on all look inward for solutions to our probof us,” Lieberman lems, not outward where place blame said. In 2001, Nebraska on a third-party.” He and others at shop owner Boyd the meeting pointed —From an April editorial in Hamwith Chasidy Rae Sisk Dingman said out that the current mer & Dolly by Mike Anderson, at incomplete initial estimates impact that time the second-generation owner situation results in cycle time and of a body shop in Virginia and the preshigher prices and overall costs for lower availability ident of the Washington Metropolitan shops and insurers, and quality of salAuto Body Association. Anderson sold essentially advohis collision repair business in 2010 and vage parts; surgical cating for the with Chasidy Rae Sisk process known founded Collision Advice, a training stripping of vehitoday as “blueprint- cles, VIN swapping and consulting firm. Among his projing.” Dingman’s ects: Quarterly “Who Pays for What?” and other fraud; infamily now opersurveys asking shops about how fresurers re-insuring ates four shops quently they bill for and are paid for poorly-rebuilt total not-included labor operations. purchased by unsuspecting consumers; with Chasidy Raeand Sisk high salvage values that result in more vehicles being totaled. 15 years ago in the collision repair National Industry Issues Forum industry (April 2001) A call to define some total loss vehi- attendees also urged insurers to concles as ‘unrepairable’ was among the sider how the accuracy and completeresolutions passed at theChasidy National Inwith Raeness Siskof initial estimates impact cycle dustry Issues Forum held recently in time and overall shop and claims costs. Minneapolis, MN. “We have some insurers that ask The event, sponsored by the So- us not to write a complete estimate,” ciety of Collision Repair Specialists, said Boyd Dingman, owner of Dingwas designed to give collision repairman’s Collision Center in Omaha, NE.

Associations Assembling Southeast News

Western Associations

Southwest Associations Southeast Associations

“They say, ‘Let’s not put blend time on there,’ or ‘Let’s not put R & I trim on there.’ Then they want cycle time. The car comes in and we don’t have blend time or the R & I time on the sheet. All of a sudden we went from the 15-hour job to a 25-hour job. That certainly slows our cycle time down because we didn’t schedule for 25 hours. They’re hurting our cycle time by asking us to write a short-sighted estimate.” —As reported in The Golden Eagle. Little has changed in terms of total loss vehicles in the 15 years since the Forum was held, but shops and insurers have for the most part come to realize the value of “blueprinting,” fully documenting all vehicle damage up front to reduce delays and expense created by the supplement process. Dingman continues to operate four shops in Nebraska. Lieberman is an industry liaison for LKQ Corporation.

10 years ago in the collision repair industry (April 2006) The “gap” has been defined. One of the long-simmering debates among shops and insurers involves when body work ends and paint work begins. The transitioning processes, which is called different things including “feather, prime and block,” are a frequent source of conflict in terms of whether and how shops should be compensated. The Collision Industry Conference (CIC) Estimating Committee has spent much of the past year holding panel discussions and working to craft a written statement that “defines the gap” in order to try to bring some clarity to the issue. At the CIC held in Portland in April, the committee received a nearly unanimous vote in favor of its ninth version of the feather / prime / block explanation. See Historical Snapshot, Page 66

Northeast Associations Midwest Associations

National Associations

Northwest Associations Shop Showcase

64 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

with Ed Attanasio

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 65

Continued from Page 64

Historical Snapshot

“The repair process associated with damaged painted body panels typically involves multiple operations: body repair, feather, prime, block, and refinish,” the statement reads. “The body repair process includes metal finishing and/or the use of body fillers to return the body panel to its undamaged contour. The repaired area is finished to 150 grit and free of surface imperfections. Feather, prime and block are not-included refinish operations that complete the process from 150 grit to the condition of a new undamaged panel. The refinish process starts at the condition of a new undamaged panel and is outlined and documented in printed and electronic time guides. The body / paint labor and materials necessary to prepare the repaired area from 150 grit to the condition of a new undamaged part is a valid and required step in the process. The labor and material allowance for these operations requires an on-the-spot evaluation of the specific vehicle and damage.” —As reported in The Golden Eagle. Despite the adoption of this

definition, “feather, prime and block” continues to be a matter of some debate within the industry. A 2015 “Who Pays for What?” survey (www.collision advice.com/survey) of more than 900 shops nationwide found that two-thirds of them reported receiving body labor, rather than paint labor, for this operation—yet less than 14 percent said this work was performed solely by body technicians. In fact, well over half said the operation is performed solely by the paint department.

5 years ago in the collision repair industry (April 2011) State Farm says in the coming months it will develop a new electronic parts ordering system for its Select Service shops. In a video message to those shops, State Farm’s Gregg McDonald said the insurer will work with all segments of the industry to develop a system to “reduce the amount of time and effort needed to search for, source and order all part types,” and “to give suppliers a better view of the process, and access to complete parts orders.” McDonald said that the system will include a review tool to allow shops and vendors to provide feedback on the parts ordering experience.

“Supplier choice and decisions regarding which parts are best suited for the individual repair will remain in your hands,” McDonald tells Select Service shops in the video. In 2009, State Farm halted an electronic parts ordering test it had rolled out in California and Indiana, saying it had no plans to implement such a program nationally, but that it had found that electronic parts ordering “has value.” The Select Service agreement that participating shops must sign gives the insurer the right to require electronic parts ordering. —As reported in CRASH Network (www.CrashNetwork.com), April 11, 2011. The system State Farm was referring to was PartsTrader, which it began requiring Select Service shops to use in 2012, rolling it out nationally by mid-2014.

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email: Ifsparts@fitzmall.com 905 North Frederick Ave., Gaithersburg, MD 20879 66 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

2016 Digital Collision Repair Trends Report

The Auto Care Association (ACA) has expelled a 2016 Digital Collision Repair Trends report—an online 70page investigation of information gathered from primary ACA research and other sources. The news highlights a distance and range of the U.S. collision industry, including a paint, physique and apparatus (PBE) segment, with a brief investigation of the Canadian collision industry. It also includes analyses of the collision industry and the Direct Repair Program (DRP). Users can: download Excel-based files, charts, tables and graphs that can be copied and pasted for presentations; view pages in an accumulation of sizes and formats; locate information by a “word search” feature; and print the publication. According to this year’s report, trade deaths, totaling 29,867 deadly collisions in 2011 (the lowest ever), have increased by 10 percent to 32,317 in 2013. Copies of a new 2016 Digital Collision Repair Trends news are now accessible for $125 for Auto Care Association members and $250 for non-members. For information, visit www.autocare.org/marketintelligence or by call (301) 6546664.

’

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Axalta’s Custom Finishes Calendar Competition

Axalta is once again on the hunt for the very best in custom cars to feature in its annual Custom Finishes Calendar. Collision repair professionals, hot rodders and artists compete to appear in the custom calendar that Axalta Coating Systems has produced annually since 1993. If your car was painted with Axalta’s coatings, it might just

make the cover. Axalta is looking for motorized passenger vehicles including automobiles (imported or domestic), motorcycles and aircraft or watercraft that are finished with Axalta’s custom Cromax, Nason, Spies Hecker, Standox brands, or with Hot Hues products. The Axalta Custom Finishes 2016 Calendar Competition officially began at 12:01 a.m. EST on Monday, March 7 and ends at 11:59 p.m. EST on Tuesday, May 31. Entrants must own or have finished the vehicle they enter into the competition

and must provide two photographs of the vehicle. To enter online, visit the contest website, then select “Call for Entries,” and complete the registration form in its entirety. Properly submitted entries that meet all eligibility requirements are subject to the official rules of the contest. Judging will be based on “best use of color” including finish quality, technical difficulty, design originality and artistic merit. Twelve winners will be selected on or before Monday, August 1. One grand prize winner will receive $1,000, a complimentary professional onsite photo shoot of the winning vehicle, cover position on the 2016 Custom Finishes Calendar, one calendar page highlight and 35 copies of the 2016 calendar. Eleven first place winners will each receive $500 cash, a complimentary professional onsite photo shoot of the winning vehicle, one in-calendar page position and 35 copies of the 2016 Calendar. For more information on Axalta’s Custom Finishes 2016 Calendar Competition, including how to enter, visit axaltacalendars.com. The official rules are available at axaltacalendars.com/ competition/content-conditions.php.

Larson Electronics Releases Two New Products

Larson Electronics recently announced the release of a 120-watt self-contained LED light tower. The WAL-BP-3XLED-CPR rechargeable LED light tower from Larson Electronics light assembly consists of three light heads attached to a circular bracket and center support.

Larson LED Strip Light

“This new portable light tower is a self-contained lighting solution designed to be easily deployed for applications such as emergency rescue, fire, police, and utility maintenance,” said Rob Bresnahan, CEO of Larson Electronics. “For storage and transport, the light assembly and tower can be stored within the wheeled case, aiding in mobility and providing operators with a compact lighting solution when storage space is of the essence.” Larson Electronics also announced the release of a four-watt

Class 1 Division 2 LED strip light equipped with a 20-foot cord terminated with a standard two wire flying lead. The HAL-6-IPS-LED-20 hazardous location LED strip light from Larson Electronics is designed for applications where Class 1 Division 2 compliance is required. “Featuring a low profile design, this fixture provides optimal light output for applications requiring hazardous location classifications,” said Bresnahan. “The adjustable moun-ting brackets make this hazardous area LED light versatile and is a perfect solution for applications with common exposure to wetness or dusty conditions.” To learn more about Larson Electronics, visit www.Larsonelectronics .com or call 1-800-369-6671. Larson Electronics will be attending the 2016 OTC show in Houston, Texas from May 2-5. Visit them at booth 6716 to inquire about their lighting solutions for many industrial applications.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 67

PDA Extends Expertise to Financial Services Sector

Property Damage Appraisers (PDA) is spreading the word about one of its core business practices—financial services. PDA’s appraisal services can be utilized by banks, credit unions and leasing companies that hold liens and force-placed insurance on vehicles. PDA inspects vehicles anywhere in the country and estimates damages in the event of an accident or total loss. “At PDA our work is quite versatile. From vehicle estimates to financial services inspections, we want companies to think of our appraisers as an extension of their team that they can rely on when workloads are heavy,” said Ken Loose, COO, PDA. “We complete estimates quickly to help get customers back on the road or get better returns on your repossessions.” “With more than five decades of experience, we’ve got the expertise to deliver high quality, accurate estimates in less time. That means you can control your costs and higher returns for your repossessed and lease turn-in vehicles,” Loose said. Visit http://www.pdacorporation .com/financialservices.php.

IL Bill Would Impose Storage Requirements

Illinois State Representative Ron Sandack, R-81, has introduced House Bill (HB) 6169. The bill would require vehicle storage providers to send a certified letter to the vehicle lien holder stating their rates prior to imposing fees. It also states that the lien holder must have the opportunity to inspect the vehicle on the premises. Under HB 6169, the responsibility for identifying the lien holder would fall on the Illinois Secretary of State. The Automotive Service Association (ASA) said this would cause an increase in cycle time for shops, create unnecessary paperwork, form recordkeeping burdens and would fail to address the root problem of holding the vehicle owner responsible for his/her automobile. ASA is also concerned that the state government infrastructure is not in place to perform such a task. ASA opposes Illinois HB 6169 and asks Illinois repair shops to visit ASA’s legislative website, www .TakingTheHill.com, and to send a letter to their state legislators in opposition to the legislation.

BASF Names N. America Distribution Director

Paul Whittleston, VP BASF Automotive Refinish North America, announced the appointment of Denise Kingstrom as the North America distribution director in Southfield, MI. “In line with our strategy to grow market share, Denise and her team are accountable to execute our North America distribution strategy. This includes enhancing the compelling value proposition distributors gain when partnering with BASF and growing their sales. Strategic leadership of ColorSource®, the BASF single line distributor program, and of the National Distribution Accounts are also part of her responsibilities,” said Whittleston. Kingstrom began her career with BASF in 1999 with assignments in New Jersey and Mexico. In 2003, she joined the coatings OEM team as a field technical sales representative. In 2010, Kingstrom joined the refinish business, leading both key and strategic account teams. For more information, visit www.basf.com.

www.autobodynews.com

Auto Glass Academy Training Begins in April

Equalizer has announced the opening of its Auto Glass Academy. Auto Glass Academy provides instructordriven, hands-on technician training to the auto glass and body industries. The four-day course focuses on technical training, time-management, customer service and safety using Equalizer® brand products. Auto Glass Academy instructors are AGRSS/AGSC certified. “When Gilbert Gutierrez, global education director, began his career at Equalizer in 1992, he created a training process to support our products,” said Eric Asbery, president of Equalizer. “Gilbert has now expanded that service that we have provided our customers over the years into the Auto Glass Academy. This is an accredited Auto Glass Safety Council (AGSC) program, and is a registered I-CAR® Industry Training Alliance Member.” Auto Glass Academy utilizes a hands-on, small-team style instruction at their three national campuses to serve areas across the USA. To enroll and/or learn more, contact info@autoglassacademy.com, toll free USA & Canada: 800-2130136, international: 512-387-5785.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 69

RDA Collision Solutions Training Seminar in TX

RDA held their fifth Collision Solutions Seminar in Dallas, Texas on March 11 and 12. RDA members, industry leaders, and supporting manufacturers attended a day and a half of presentations. Attendees told RDA that the event was a success and that the presentations are helpful and informative.

language and unconscious persuasion expert, Traci Brow. Brow assists groups to learn tools to “read” others, and hear “Yes!” more easily and more often. Robert McKenzie Jr., executive director of RDA said, “Our members and key people continue to embrace these training venues. The synergies created between our members and industry partners at these events provide exciting and excellent opportunities.” RDA has 19 members, representing 243 locations. Members service over 3,800 collision centers throughout the United States. The company’s sales profits are $455 million as a group, comprisAttendees of RDA’s Collision Solutions Seminar in ing around 17 percent of the Dallas, TX refinish business nationwide. Kevin Wolfe, industry consultant Those interested in joining RDA with Leaders Way, presented talent as- /IMPACT should contact Robert Mcsessment, understanding why smart Kenzie, Jr. directly at 731-217-9081 people under-perform, and creating or via email at robertemckenzie@me profitable and happy work environ- .com. ments. Steven Trapp, North American For more information on RDA strategic accounts manager for Axalta, /IMPACT, visit their web site at www presented on enhancing your role as a .rda-impact.com or contact Melisa distributor in delivering value-added Jolls at 908-251-5713 or email: meljolls services. The event closed with body @earthlink.net.

Altra Products Supply, a Car-O-Liner Distributor, Celebrates 30-Year Milestone in Business

Car-O-Liner®, a global provider of collision repair equipment to the automotive aftermarket, announced that Car-O-Liner distributor, Altra Products Supply Inc., is celebrating 30 years in business.

Richard Post, owner of Altra Products

Altra is owned by Richard Post and opened on March 1, 1986, in Wayland, MI. The 10,000-square-foot facility provides products such as Car-O -Liner measuring, welding and holding products, Garmat USA paint booths and booth products and Col-Met powder coat booths and ovens. “I opened Altra because I wanted to help people,” Post said. “This is a very technical industry, and we wanted people out in the field to know the right ways to correct damaged vehicles.” Altra began selling Car-O-Liner products in 2011, and Post said sales of

these products have really taken off locally. “We chose to work with Car-OLiner because they are a local company with great products,” he said. “They have a great local facility. Our customers recognize that Car-O-Liner is top notch in the industry. They like that we are supporting them so they are supporting us through that as well.” Post is a 1975 graduate of the Kent Career Center in Grand Rapids and holds an Associate’s Degree from Ferris State University’s auto body program. He has been married for 30 years and have four children. Post said support from family has been vital in the success of his business. His sister, Rose Wiers, has been the controller for Altra for 20 years. He also credits his employees for their continued hard work and support of the customers and their business. “Our employees here are second to none. They work very hard to take care of the customer and to make sure things are right for them,” Post said. “I couldn’t do it alone. I am very pleased to have these top notch people to do what we have done for the past 30 years. They have helped establish an honorable relationship with our customers. We’re looking forward to the next 30 years!”

70 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

Sherwin-Williams Automotive Finishes 2016 Second Quarter Training Schedule

Sherwin-Williams Automotive Finishes announced its second quarter 2016 collision repair industry courses taking place nationwide at training sites from April 4 through June 27. Participants will learn through a combination of classroom, digital and hands-on settings at various metropolitan Sherwin-Williams Automotive Finishes training centers, according to Rod Habel, Sherwin-Williams Automotive Finishes director of training operations. “In today’s constantly changing industry, training has become more important than ever for a customer to be successful in business,” Habel says. “For instance, with today’s new factory finishes, our Color Adjustment and Blending class is a great way for technicians to stay ahead of the curve.” He also noted that special hands-on, paint and processes application-based courses will be offered during the second quarter featuring the brand’s AWX Performance Plus™ Waterborne Refinish System, as well as painter certification classes. 2016 Second Quarter Training: Atlanta / 04/04/2016 / AWX Performance Plus™ / Waterborne Basecoat

Painter Certification / 3 days

Atlanta / 05/10/2016 / Painter / Certification / 3 days

Atlanta / 05/17/2016 / Color Adjustment and Blending / 3 days

Chicago / 04/11/2016 / Painter Certification / 3 days

Chicago / 04/27/2016 / ATX™ Refinish System Painter Certification / 2 days

Chicago / 06/27/2016 / Color Adjustment and Blending / 3 days

Dallas / 05/10/2016 / Color Adjustment and Blending / 3 days Dallas / 06/27/2016 / Painter Certification / 3 days

Reno / 04/11/2016 / AWX Performance Plus™ Waterborne Basecoat Painter Certification / 3 days

For information about courses, visit the training section at www.sherwinautomotive.com/refinish/trainingsupport/ or call 1-800-SWULTRA (1-800-798-5872).

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 71

Western Associations

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

California Veteran Body Shop Owner Returns to Serve CAA for the Seventh Time with Ed Attanasio

Adam Piper is a 45-year veteran of me if I wanted to give auto body a try. the collision repair industry and a forI said ‘yes’ and ‘thank you very mer body shop owner who established much.’ He handed me some tools and with Attanasio told me that the pay was strictly comseveral successful shopsEd called FCC mission. There Collision Centers in the Silicon Valley starting in the late ‘70s. wasn’t any I-CAR back then, so Since selling his locations to Caleverything was iber Collision in 2014, Piper has worked for the MSO as a liaison beOJT (on-job-traintween the company and car dealerships ing). Within three Chasidy Rae Sisk in the South Bay.with Recently, Piper, who years, I was the has been on the California Autobody highest paid, but Adam Piper is back Association’s Board for over 30 years, not necessarily the to be the SC-CAA agreed to be the President of the orgabest body man in President for the nization’s Santa Clara Chapter for an the entire area. I seventh time, because he believes unprecedented seventh time. did that for seven in the organization years and then I with Janet Chaneyand its members decided this was How did you initially get into collision repair? wearing me out—I was pretty burnt out, producing 100 hours a week, and I came out of the military in needed a change! 1971 with a wife, two young So, I started looking around in sons and no job. My father-in-law was 1978 for a business opportunity and I the body shop manager at a Ford deal- found a body shop in Mountain View, with LuehrCA, that was for sale. The owner reership in Monterey, CA,David and he asked

Western News

Northeast News

Q: A:

Associations Update Lean Operations

ally didn’t want the shop, because he got it due to a bad debt. He wanted $75,000 for it, but he dropped it down to $50,000 with terms, so I took it. Three days later my RV was parked in the backyard and I was the manager until escrow closed and my years as an owner had begun. Initially, the shop had five employees and was grossing around $50,000 per month. At the time I had no experience writing estimates or managing anything other than myself, so there was a lot of OJT taking place. I expanded my operation into two shops with 50 employees grossing over $5 million annually. I owned the business for almost 20 years until I sold it to M2 Collision Centers in 1997. After that, I took a break from the industry until I, along with my two sons Matt and Jason (then 36 and 35 years old), got both of my former shops back at auction in 2005. We opened two more shops (2012 and 2014) in the

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complished, intelligent and hardworking.There are always ups and downs when working with family, but overall, it has been a wonderful experience. Making money is important but being able to work with Matt and Jason has been even more special. Matt is now 44 and he has been able to take some time away from the day-today working world to pursue many of his dreams. Jason at 43, chose to stay on with Caliber as a Business Development Manager (Acquisitions and

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Indiana Moves Forward on GM-Written Bill To Close Auto Sales Loophole, Sponsor: “Not About Tesla” Indiana is seriously considering legislation that could lock Tesla out of the state—with a real possibility that Tesla will be prohibited from holding a dealer license in the state after 2017. The Indiana Senate Committee on Commerce & Technology recently held a hearing on the bill in question— HB1254/Amendment 3, authored by GM—and held a follow-up meeting on February 25th, at the Capitol building. The bill, authored by Rep. Kevin Mahan, R-Hartford City, could ban auto manufacturers from selling directly to consumers. The bill seems designed to shut down Tesla, the manufacturer of all-electric vehicles whose direct sales strategy runs counter to the traditional franchise dealer model. Tesla operates a showroom at the Fashion Mall at Keystone. The House on Feb. 2 passed a version of House Bill 1254 that would send the issue to a study committee. But a proposed amendment to the bill would bypass a study. It “provides that a dealer license issued to a manufacturer expires after 30 months,” causing Tesla’s dealer license to expire in 2018. “It’s not about Tesla. It’s about a

level playing field,” Mahan said. “Tesla just happens to be the only manufacturer in the state working under this situation. But the thing is, with the technology forthcoming, not only in the United States, you could have another manufacturer pop up any time. So I’m trying to close this loophole.” Indiana lawmakers are pushing the bill as Tesla is planning to unveil a product that will compete with a new all-electric vehicle from General Motors. Tesla earlier this month announced it will begin accepting pre-orders for its Model 3 car on March 31, with an expected delivery of late 2017. Existing law allows any manufacturer to apply for a dealer license without the use of independent franchised dealers. Despite having a lawfully granted license to sell Tesla vehicles directly since 2014 at the Fashion Mall at Keystone; despite contributing over $42M to the state through the purchase of parts and components from Indiana suppliers; and despite plans underway to construct a 26,000 square foot Tesla Service facility that will employ approximately a dozen Indiana residents.

Rotary Lift Introduces Video Series

Rotary Lift is drawing on its more than 90 years of experience designing and manufacturing vehicle lifts to answer frequently asked lift operation, maintenance and installation questions in a new video series dubbed “90 Second Know How.” These short videos cover light-duty and heavyduty lifts, including two-post lifts, four-post lifts and inground lifts. “Rotary Lift’s customer service team gets more than 190,000 phone calls a year,” says David Fischmer, Rotary Lift marketing director. “Our customers are busy, and when they need help, time is money. But when a customer isn’t standing at the lift when calling, verbal explanations can be difficult to convey and hard to understand. This new video format is like being in the customer’s shop to demonstrate the answer—in just 90 seconds.” The first six videos are online, with additional releases scheduled monthly. The videos are currently available at: www.rotarylift.com/ training-videos. To learn more, contact your local Rotary Lift distributor, visit www.rotarylift.com or call (800) 640-5438.

Nviro-Tech Launches Paint Facts Displays

Nviro-Tech, LLC has launched ecotools and custom training and education programs for the collision industry. “Collision Paints Facts” Office Shop Display, available in 3 sizes: ● 11” X 17” framed wall mount model ● 8.5” X 14” table/desk model with plexiglass stand ● 6” X 9” table / desk model with plexiglass stand The Collision Paint Facts Office Display was created in 2015 by Michael Mettinger to educate customers on color matching. It explains to the customer that the shop is responsible for bumper and trim color variances and how to remedy the problem before it begins. NviroTech, LLC also provides the following products and educational tools: ● 6H Source Rule Compliance ● EPA Painter/Refresher Compliance ● Customized Shop Curtains ● CTR “Cycle Time Reduction” Inflatable Spray Booths Contact Matthew T. Mettinger, mattm@nvviro-tech.com, (561) 3365463.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 73

Continued from Page 72

Returning to CAA

Development) for the first year and now is working with many of his old teammates as a regional manager in the Silicon Valley market.

As someone who has seen this industry change in so many ways, what are some of the challenges that body shops are facing now? Well, everyone knows that finding good people is the #1 probA: lem in this industry right now, at least

in the Bay Area. The challenge of retaining top employees was getting intense, because other shops were constantly trying to hire them away. This problem has gotten worse, because there are enough experienced techs out there to fill the void. At some shops, it’s like a revolving door where they hire and fire people all the time. It does not help the fact that we also are in one of the most expensive places to live in the country. Even a body/paint technician making $100,000 a year finds it difficult to live in the Bay Area, so that makes it even tougher to find and retain top people.

At your peak, you were emQ: ploying more than 75 people, so how did you retain them and keep

them happy?

Luckily, we were very handsA: on owners and involved in making sure that our people were

doing things the way we wanted them to be done. We worked closely with them, let them know that we valued their work and we had a full benefit package. Other shops were calling them all the time and trying to recruit them but we tried to include our employees in as part of the family and showed them our appreciation with friendship as well as compensation. For our industry today, my top concerns are finding and retaining good

employees. The crazy labor laws in California don’t make that any easier either.

In California today, most body shops are between 80%–100% fueled by DRPs, but when you started in the 1970s, they weren’t yet prevalent, correct?

body shops in California?

Definitely. The prices are very robust around the Bay Area. For A: example, one of the properties that I

auto body industry has had its challenges but overall it has been great. I have met many amazing shop owners, staff and vendors through the years and I hope to be of help to this industry for many years to come.

You’re now back leading the purchased in Mountain View in 1987 Santa Clara Chapter of the for $1.2 million is now worth over $6 CAA? There were almost no DRP million. It’s going to be tough for body programs back then. When I Yes, I joined the CAA and shop owners because they’re not going originally sold in 1997, there were restarted going to the local meetto be able to afford the increasing ally only three significant DRPs out rents. Back in the 1990s when the real ings around 1983. Being an active estate in the Bay Area started member over the years has helped me to go up in price, some people network with the local shops, learn what each of us were dealing with and were thinking about setting develop relationships that have gone up “feeder locations” in well beyond the other guy just being my towns 50-100 miles away from their Bay Area locations, competitor. The state meetings became an added bonus as I was able to do all because the property values were so much lower. That the same things and learn what legislation was being pushed that would have way, they figured they could afford the rent in those an effect on me and the auto body insmaller cities, but in the end it dustry. California is a very proactive Piper said he has lived the dream by being able to work would not work, because state and tries to enact a huge amount with his two sons, Matt (left) and Jason (right) and of bills that at not business friendly. If today the insurance compabuilding a successful business over 38 years nies are so focused on cycle it was not for the CAA and other groups there—Farmers, USAA, Allstate and times and efficiency. Also, the cost to reading and understanding the ramifithey were not getting that much work cations of the bills before enactment, transport the vehicles back and forth into the DRP shops at that time. I only would add up. well....I wouldn’t want to think how had Farmers at the time when I sold. The life I was able to build in the much tougher it would have been. When I re-entered the business in 2005, I realized that if you didn’t have at least two or more DRPs, you were probably in trouble. Without them, you couldn’t have enough cars in your shop to stay consistent and survive. DRPs are an integral part of the business today and the Bay Area is a good example of that. I would bet that any shop in this area that is doing well is almost completely supported by DRPs. It’s the model that seems to work the best in California and I don’t see it changing any time soon. The Genuine Mitsubishi Replacement Crash Parts are close at hand from biggest obstacle now with the DRPs is the following quality dealerships. all of the administrative work the shops now have to do. It was the insurance company’s responsibility before, but over the last decade, it shifted to the shops. So, now you need more front ofMASSACHUSETTS fice personnel to deal with all of the paperwork.

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74 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 75

Service King Launches Revitalized Website

Service King Collision Repair Centers® recently unveiled a revitalized look and experience to its consumer-facing website—www.ServiceKing.com The website was designed and developed by award-winning, fullservice digital agency Blue Fountain Media. “We place a priority on providing customers and business partners a cutting-edge, user-friendly digital experience,” said Jeff McFadden, Service King president. “The new Service King homepage was rebuilt from the ground up to enhance the repair experience for our customers and provide an engaging platform to connect with our brand.” “We’ve very pleased to have provided Service King with a website that takes their online presence to the next level,” said Gabriel Shaoolian, VP of digital services, Blue Fountain Media. “The site’s focus on providing cutting-edge design that drives measurable results will help their brand continue to establish itself as an industry leader while also making the collision repair process even more convenient and hassle-free for their customers.”

Indiana ABA February Meetings Address Changes to FLSA by Chasidy Rae Sisk

In February, the Indiana Auto Body Association (IABA) held five chapter meetings to present upcoming changes to the Federal Fair Labor Standards Act (FLSA). These presentations were delivered through the association’s Virtually Live (VLive) training initiative. According to IABA Executive Director Tony Passwater, these meetings were held to discuss “new regulations coming from the federal government over the next two to four months. The government will be making some major changes to the FLSA.” Currently, an employee must make a salary of $23,000 to be considered exempt, but the government is discussing raising that requirement to $50,000. Passwater predicts, “Shops will need to convert employees to hourly wages, making them eligible for overtime, or raise their salary over $50,000. Even if an employee makes the minimum amount, they’re still unlikely to pass the duty test that requires them to have direct reports to qualify for exempt status; 90% of positions within the collision repair industry don’t meet this requirement.” Passwater also discussed the importance of employee handbooks, re-

minding attendees that it’s not complete once it’s put together. “It must be legally correct, and shops must update their handbooks regularly because they will be held to it. Most importantly, the handbook must include arbitration clauses, or court costs could rise into the hundreds of thousands.” In addition to qualifying as a service business, a shop must pay its employees at least one-and-a-half times the minimum wage for them to be exempt. Shops must also require employees to clock in and out, even if they work on commission. “Many shops don’t do that which can allow employees to go to the labor board and say they’re working 5060 hours weekly,” Passwater warns. “The employee is always right if there’s no documentation.” Passwater also talked to attendees about protecting themselves in terms of liability, and he predicts that these new requirements will cause much concern in the next few months. The New Albany chapter held their meeting on Monday, February 8 at Tuckers, and the next day, the Bloomington chapter’s meeting took place at the Crazy Horse Food and Drink Emporium. The Fort Wayne chapter held their meeting at the Lucky Moose on Wednesday, and on Thursday, February 11, the Indiana NW

chapter held a morning meeting at Gino’s Steakhouse in Merrillville, IN, with the Indianapolis chapter holding their meeting that evening at Rick’s Boatyard and Café. Passwater said attendees responded well to the information shared, but attendance fluctuates drastically. While he believes there’s a lot of value in attending meetings and networking with peers, it is not necessary for shops to receive the education they need. The VLive concept was created because of the difficulty of finding speakers to travel to five locations in one week, so Passwater has begun interviewing industry speakers remotely or acquiring permission to use content which can be distributed electronically to IABA’s five chapters. Since meetings generally last no more than two hours, the VLive system also contains an online training portal that is free to members. Here, Passwater posts the full content of the educational sessions, giving industry professionals a chance to learn more at their convenience. Non-members ca purchase access to this useful information. Passwater says, “We want to create more value for our membership. We’re trying to get this information out there, regardless of attendance, and I see virtual learning as the future for all of IABA’s meetings.”

SEMA and Auto Care Association Partner on Industry Job Board

SEMA members,” said Zane Clark, director, education, SEMA. “The SEMA Career Center addresses this challenge and makes it easy for automotive employers to connect with job seekers that are best suited for their needs.” The Industry Job Board, a resource for both applicants and employers, is designed to be a central hub where auto care job seekers and job creators connect. The job board currently hosts hundreds of positions available today in marketing, finance, legal, H.R., information technology, logistics, sales, international trade, facility management, technicians and hundreds of other career specialties in the auto care industry. The upgraded website features tools to help companies recruit talent to the industry, including a custombuilt, interactive career accelerator featuring five industry segments, a comprehensive recruiting resource guide and the Industry Job Board. For more information, contact: Courtney Hammer at courtney .hammer@autocare.org or 301-6546664.

76 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com

All The Genuine Lexus Parts You Need For A Lexus Finish i

The Auto Care Association and the Specialty Equipment Market Association (SEMA) announced a new partnership to support the Industry Job Board, www.autocarecareers.org and the recently-launched SEMA Career Center. The partnership creates a network between both job boards of available positions and resumes of qualified candidates in the auto care industry. The Auto Care Association recently also partnered with Babcox Media, combining www.aftermarket jobs.com and www.autocarecareer hub.com with the Industry Job Board. “As part of the Auto Care Association’s Job and Career Development Program, the Industry Job Board is quickly expanding to create a single industry-wide resource to find top talent,” said Bill Hanvey, president and CEO, Auto Care Association. “We are excited to continue to connect and share with other organizations passionate about recruiting the best of the best in the auto care industry.” “Finding qualified employees with specific skills and relevant work experience are top challenges facing

These Dealers Below Are Genuine Lexus Parts Distributors:

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Fitzgerald Subaru of Gaithersburg Gaithersburg (301) 670-4881 (301) 670-1595 Fax

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Mon.-Fri. 7:30-5; Sat. 8-2 subaruparts@lcmotors.net parts.lancastercountysubaru.com www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 77

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2016 Second Quarter Training Schedule Announced by The Martin Senour Company

The Martin Senour Company announced its 2016 second quarter training schedule, with courses running from April 19 to May 19. Training courses emphasize painter certification and maximizing shop profits, and will be held at training facilities nationwide. Martin Senour Automotive Finishes Director of Sales Jeff Hartl noted the brand’s training sessions are designed to help shop owners, managers, and technicians better execute environmentally-responsible practices, as well as improve their repair techniques and knowledge of today’s new innovative painting systems – particularly the brand’s popular Pro//BASE™ refinish system. In addition, customized classes are being held for NAPA Jobber professionals on specific Martin Senour product and process knowledge to help them better service to their NAPA collision shop customers. In particular, Martin Senour professionals will teach the following courses during the second quarter of 2016: ● Color Adjustment and Blending ● Fleet FPG

● Jobber Level 1 ● Painter Certification ● Pro//BASE™ Refinish System Painter Certification Training Schedule: Atlanta // 04/19/2016 // Painter Certification // 3days

Atlanta // 04/26/2016 // Color Adjustment and Blending // 3 days

Atlanta // 05/03/2016 // Jobber Level1 // 3 days

Chicago // 05/10/2016 // Jobber Level 1 // 3 days Chicago // 05/16/2016 // Color Adjustment and Blending // 3 days

Chicago // 05/19/2016 // Pro//BASE™ Refinish System Painter Certification // 2 days Dallas // 05/02/2016 // Fleet FPG // 3 days

For information, visit www.martinsenour-autopaint.com or call 1800-526-6704.

AkzoNobel Reveals 2016 Distributor Council

AkzoNobel’s Vehicle Refinishes announced on February 24 the members of its 2016 Distributor Council. The Distributor Council is a legacy activity of Vehicle Refinishes that spans its 30-year history in North America. Over this period of time, Vehicle Refinishes has looked to advisory bodies drawn from its distribution network to assist AkzoNobel in establishing frameworks for business practices as well as provide inspiration for creating new polices, products and programs. Those advisory bodies have gone under various names; however, the purpose of the group has remained constant….provide counsel.

Council Members are: Paul Fus – PF3 Paint Supply, Wixom Michigan Robbie Brinkley – C&D Auto Paint & Body, Thomasville, Georgia Doug Richau – Auto Color and Industrial Supply Peter Kilkenny – Providence Lacquer & Supply Centre, Cranston, Rhode Island Layla Maus – Gladwin Paint, Austin, Texas Kim Snyder – Body Parts Store, Inc. Des Moines, Iowa Peter DeLuca – Industrial Finishes

The Right Parts.

& Systems, Inc., Salt Lake City, Utah Don Treschak – Treschak Enterprises, Ltd., Welland, Ontario “The council, comprised of eight representatives throughout North America, is a visible and proactive sign that AkzoNobel’s Vehicle Refinishes business in North America is dedicated to distribution as our primary method of going to market,” said Dave Recknagel North America customer services manager. “As a result, we are constantly striving to innovate. This includes Go-To-Market business models which ensure that we are engaging, evolving and advancing practices and processes that enhance current relationships as well enable growth and expansion to create new.” Council members are asked to serve as ambassadors to other members of the AkzoNobel distribution network within specific geographic market sectors to ensure that information is received, delivered and comprehended in as equitable a manner as possible. The council physically meets three times a year with intermittent conference calls to help bridge time gaps or address critical and immediate issues. For information, call Bill Orr at 770- 441-8973.

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www.autobodynews.com | APRIL 2016 AUTOBODY NEWS 79

80 APRIL 2016 AUTOBODY NEWS | www.autobodynews.com