Frank Subaru

Owning and operating a collision shop today is a daunting task. It’s not uncommon to hear some owners say that they would just as soon get out and close their shop… but then, whatwouldtheydo?Inlastmonth’s edition of Autobody News we produced part one of this two-part series on alternatives to operating a body shop. Here are a few additional ideas on alternative but related options and the conclusion of this series.

W ork For an OE: Car makers have a lot of people on the payroll - a lot of people with many talents, levels of education, experience and expertise. OE’s, at the national level, specialize in establishing dealerships, distributing cars, administering sales programs, warranty administration and ensuring a steady flow ofspare parts. To do this they spend the majority of their time concentrating on their dealership network. Up until fairly recently, they spent little to no time on the collision side of the business and thus have few people who are well versed in it. A former body shop manager could provide expertise in any number of areas including field work, training, producing training or service materials, or administering body shop certification programs, just to name a few.

Third Party/Consulting: Vehicle Collision Experts LLC, better known as VECO Experts, owned by industry icon and former shop owner , Mark Olson, offers a number of different consulting, training, coaching and auditing services to body shops. He also serves as an expert witness for court cases including collision and vehicle defects. In addition, he manages shop inspections for OE shop certifications programs for Subaru and several other OEs. To do this he employs over 20 associates…many of them former shop owners. Olson says, “I would like to have ten more former shop owners. Someone with 10 to 15 years in the business knows what they are doing… and do a good job at it.”

Independent Consultant: It is not uncommon for a former shop owner to lend their expertise to any number of different related companies who need a consultant on a part time basis, or to conduct a special project. Two that immediately come to mind, and are both former shop owners are Lou DiLisio of Automotive Industry Consulting, Inc. and the ever-popular Mike Anderson of Collision Advice. Technical Instructor: Doug Irish is the Department Chair for Collision Repair and Refinish T echnology for the Fayetteville Technical Community College (FTCC) in Fayetteville, NC. “People become instructors for colleges, tech schools or high schools for anumberofdifferentreasons and in a number ofdifferent ways” says Irish. “But it’s good to have someone with several years’ experience and someone who knows the industry.” Irish notes that an instructor’s position will not command the paycheck that a shop owner’s will, but in many ways the job is less demanding, but, like any job, not without its challenges. be passionate about, and talk to the booth representative. If they are not looking for new people, they probably know someone who is. In either case, it’ s a great place to network. Website Design, Social Media and Promotion: To be “alive” in the business world today requires a well-designed and constantly updated website and appropriate social media presence. Some people are good web designers but know nothing about the collision business or how to relate to people. As aformershop manager, youdefinitely know the business, and know what to say(andwhatnottosay)topotential customers. If you know how to produce websites and manage social media, or know someone who does andyoucanmanagetheirefforts,you have a ready-made and very lucrative business. Engage in Emerging Technologies: Industry veteran and author of the new book, AutoIndustryDisruption,Who and What is Being Disrupted and What to Do About It, Frank Terlep notes, “If someone is looking to get out of their body shop and do something else, theyfirstmustbe engaged with what they are doing now and where the industry is headed in order to be valuable to someone else. The future in this industry is electronics and you must watch the trends.” This includes autonomous cars, artificial intelligence, and alternative motive power and fuels. “AirPro Diagnotics is a good example of this emerging technology” noted Terlep. “They are diagnosing vehicle electronics from a remote location.” Industry veteran, former chairman for the Collision Industry Conference See He’s Had it! Part 2, Page 57 “If someone is looking to get out of their body shop and do something else, they first must be engaged with what they are doing now and where the industry is headed in order to be valuable to someone else.” — Frank Terlep

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Magazine Reporter: Since the 1970’s, scores of shop owners have authored magazine articles, some even had their own monthly column. Some did it while they were still running their shop, some after retirement. They wrote about everything from spray painting technique, to how to buy the correct equipment to tips for running an efficient frontoffice… andeverything in between. One thing they all had in commonaswriters–credibility.

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Frank Subaru

Hawaiian Technical School Instructor Helps Train Technicians of the Future

Just over two decades ago, Marlene Spence entered the Autobody Repair & Paint Program at Honolulu Community College in 1997 and earned an Associate ofAppliedScience(A.A.S.) degree two years later . Fast forward to 2020, and Spence is now teaching as a lecturer in that same program to help train the technicians of the future.

When prospective collision repair students ask Spence about the importance of attending an auto body pro

es inOregon. She also ownedashop where she worked on custom motorcycles.

Through the years, Spence always had a desire to go back to the community college to teach. When the opportunity to become a lecturer presented itself in the latter part of 2019, she said it was an easy decision to return. “It’ s exciting and I love it,” she said.

Instructor Marlene Spence traveled with her students to the SEMA Show in Las Vegas this past November

gram, she tells them that it will provide the knowledge they need to work at a body shop.

“If they come to college, they won’t have to start as the guy who sweeps the shop or washes the car or moves the car,” said Spence. “Instead, they can start with an entry technician position with better pay.” This is the first year Spence has taught at the community college. Growing up, she always had an interest in cars but spent most of her free time attending art and music classes. She attended Honolulu Community College as an art major and decided to switch to auto body, so she could learn how to custom paint.

After graduating, she worked at the Pearl Harbor Naval Shipyard painting submarines for six months, one of which was the USS Keywest nuclear submarine.

“It was a great experience,” said Spence. “It was unlike anything I had done before.” Over the next several years, she worked as a paint technician for a localHonolulujobber, Hi-LineDistributors, as well as for Industrial Finish

She currently has nine students as part of the one-year program and focuses on a combination of lecturing and hands-on learning. “Ifindthattheyretainmorewhen they are actually doing the work,” she said.

In the classroom, Spence focuses on developing the core skills students need in the field: attendance, attitude, organization, communication and developing a tight team that looks out for one another. This past November, she traveled with her students to the SEMA Show in Las Vegas to show them the various opportunities available in the industry. A few of them with native Hawaiian ancestry received financial assistance to attend as part of the ALU LIKE, Inc. Hama Lima Scholarship. Theprogramoffersa$1,500awardto students participating in a vocational or technical education program for occupations that can provide a “living wage.”

“They were blown away at the show,” said Spence. She recalls that one of her studentstoldherthatgoingtoSEMAand

seeing the opportunities available in the collision repair industry changed his life.

Spence is now in the process of updating the curriculum at the school, which was the same material used while she attended the program. She is relying on information provided from the Inter-Industry Conference on Auto Collision Repair (I-CAR) as well as theCollisionCareerInstitute(CCI). She is also working to boost enrollment, so the auto body program isn’t cut. WhileattheSEMAShow,Spence had the opportunity to attend a Collision Repair Education Foundation (CREF) roundtable meeting. There, she met other instructors with similar challenges.

“I think other instructors across the nation are in this same situation,” she said. “At the end of the day, school is a business,” said Spence. “They need enrollment to make the money to have the program survive.”

Her advice to other instructors facing these challenges is to reach out to prospective students by attending career fairs at local high schools, visiting elementary schools and hosting tours to share information about the industry.

While attending these types of events herself, Spence often observes that many parents try to steer their kids away from learning about vocational trades. “They don’t know that their children can make a really good living with minimal tuition and the skills stay with them forever,” she said.

As a result, she stresses the importance of educating parents and students about the opportunities available and the type of future that is possible. “The more it’s out there, the more people will start accepting it

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and encourage their children to take something like this,” said Spence. “I know I’m passionate and I portray that to these future techs. If you don’t believe in it, they can pick up on it.” She also recommends reaching out to local associations and body shops to build connections. “If shops don’t already have relationships, build them because they are going to be your backbone of support,” said Spence. “The schools only know what they know and not always what the industry needs, so you need to get the industry behind you.”

Spence has experienced industry supportfirst-handthroughtheMarch T aylor Memorial Foundation. When she firstbeganteaching, she realized that the tools in the college body shop were old and rusty.

“These are the same tools used when I was going to school there,” she said.

She talked to Toby Chess and Dale Matsumoto, both of whom are committee members from the March Taylor Memorial Foundation. T aylor worked in the collision repair industry and was known for being a compassionate businessman committed to changing the industry for the better and helping people learn. He lived his life according to the Hawaiian word “Kina’ole,” which means “Doing therightthingintherightway , at the right time, in the right place, to the right person, for the right reason, with therightfeeling…thefirsttime.” The foundation was established in 2007 by close industry friends who knew Taylor and also believed in his passion. Other committee members include Jeff Hendler, Collision Industry Conference (CIC) administrator; Jordan Hendler, president ofAdmin Concepts; and Barry Dorn, owner ofDorn’s Body and Paint in Mechanicsville, VA. T oday, the donations received by the industry are used to provide opportunities for the next generation of technicians.

Chess had originally met Marlene while she was a manager at Hi-Line. “She has a lot of technical experience, knows how to fix welders and is one of the best painters I’ve ever seen,” said Chess.“Everytimewewould do a training seminar, she was always involved and helped bring people in.” Chess recommended Spence apply for an educational grant through the foundation. “March was always adamant about supporting the technicians in the industry and also big on promoting education,” said Matsumoto, who owns Auto Body Hawaii with his wife, Rissa. “The scholarship fund is about giving back. March always gave—he never took.” Matsumoto said the foundation really embodies “Kina’ole” and what he referred to as the “circle of giving.” “When the industry supports the foundation, the foundation is able to The auto body program at the college focuses on lecturing and hands-on learning

support schools, which educates and supports students and ultimately the outcome is that industry gets back a better technician,” he said. “When you truly give from the heart, then good things really happen.”

Spence prepared a wish list of tools that would be helpful to have in the shop. Chess said the cost of the tools came close to $4,000. The March Taylor Memorial Foundation donated $1,000 and the Automotive Body & Painting Association of Hawaii (ABPAH) matched that amount. Matsumoto also reached out to a number of collision repair shops and friends in the state to contribute to the program. “This was a grassroots effort,” said Chess. “The next thing you know we covered the cost. She got everything on her list and then some.” Kent Automotive donated 10 air hoses, threedrillbitindexes,andfive sets of shears in conjunction with the March Taylor Fund to help support the community college. “The benefit of supporting an educational program like this is to promote the collision industry and generate more interest surrounding

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this as a viable career path for young men and women,” said Ashley Lucenti, the Western U.S. regional sales director for Kent Automotive. “The success of these young men and women is important to all of us and the evolution of our industry.” Lucenti said she is new to the industry but in the short time she has worked for Kent Automotive she has observed many good ideas on how to better support one another as well as the industry as a whole and looks forward to seeing some of these ideas come to fruition.

Meanwhile, Spence said that with all of the generous donations of tools and equipment, she will continue to develop the program at Honolulu Community College.

She tells her students to remain in school, learn everything they can and ask a lot of questions.

“I tell them that if it is something you really believe in, go for it,” said Spence. “I did and it worked out just fine. Don’t let anyone ever tell you no because they will.”

For more information about the March Taylor Memorial Fund, visit www.marchtaylormemorial.org/.

The HD Repair Forum announced the release of its’ educational programand agenda (www. hdrepairforum.com/agenda) f or this years’ installment of the only event dedicated to the heavy-duty collision repair market. The two-day event is filled with a fast-paced agenda, with speakers from industry leading companies and individuals driving change in the industry. Some of the top ics include: FHD Repair Forum March 24 th -25 th Details

• Frame, Cab, and Trailer Repair • Advanced Driver Assistance Systems (ADAS), Scanning, and Diagnostics • Business Strategy and Employee Relations • Steering, braking, and other key repair knowledge

The speakers and content for this program are a derivative of the work, input, and direction of the HD Repair Forum Adviso ry board www.hdrepairforum. com/advisory-board. Continued from Page 42 ASA Webinar

a silly discount; I’m talking about running an actual promotion.”

An example where a shop offers a 10% discount on a select repair indicated $5,500 in additional gross profit, but Witt pointed out, “All of those sales are net profit because they are sales that would not have been made if he hadn’t run the promotion. That’s a 45% net profit, a 41.6% increase, and it demonstrates the value of doing just one more job each day.” “The aim of cost accounting is, first, find operational steps that add cost but not value, such as techs waiting for parts, and work on shop efficiency and labor billing,” Witt said. “Second, find out which operations make money, and which don’t. Focus on the money-makers and adjust your pricing or marketing on that tones that don’t. You’re the one that determine what it sells for.” Witt also warned about the “log jam.” When service writers are overloaded, it prevents them from effectively selling or keeping up. As a result, additional unsold work quits being found. “T oo many shop owners see low sales and want to add a tech,” she said, “but the answer may be that you need more office staff. You may need one support person per tech. If your shop’s techs are producing less than 160 billed hours per month, you need more office staff, not more techs.”

Encouraging attendees to make changes to benefit their businesses, Witt concluded, “Analyze your own data, remember accountants only count beans, and do something! It’s very interesting. Accountants don’t make management decisions – accountants only provide information which management uses to make decisions. Do something! Make just two small changes that will do the most good, then make two more changes.” The webinar ended with a question-and-answer session. ASA’s next Webinar Wednesday will be held on Feb. 19 and will feature “TPMS Tech Solutions” with Gary Hicks, TPMS product marketing manager at Standard Motor Products. For more information, visit asashop.or g/ webinars.

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Automotive Artwork Adds Class to Your Waiting Room

During my career as a journalist covering the automotive repair industry, I have probably been in more than 600 body shop’s waiting rooms, and unless it’s an MSO, they’re all different. Some shops go over the top, with fountains, beverage bars, contemporary furniture and big-screen TVs, etc. Othershireinteriordesignerstocreate a customer-friendly environment. But, what’s on the walls? WhatIoftenfindarepicturesofLittle Leagueteams, I-CARandOEcertifications,rustyoldtrafficsigns,plaques fortheEmployeeoftheMonthorother forms of community or professional recognition. These types of things can reinforce your already stellar reputation, but are they really pleasing to theeyes? Puttingallofthesethings on your walls is nice, but in the end, many waiting rooms look like minimuseums or large bulletin boards. Remember that when any individual enters your facility, he or she can potentially become a customer for life. Stand out and impress them and begin the process on the right foot. Ofcourse, you’ll have to do a great job on their car, but that’s given. In a world where social media can help or hinder a business overnight, a good firstimpressionismoreimportant than ever.

There are a handful of options for decorating your walls in an attractive and uncluttered manner. In some waiting rooms, I’ve seen a series of black and white photos of their town featuring different scenes throughout the years. They went to the local library, made high-res copies of the photos, and then had them nicely matted and framed. It’s a smart move because the message is that you’re connected to your community and hopefully vice versa.

Another cool way to give your waiting area that “wow” factor is with a mural. You can hire a local artist and come up with a concept that is unique and suited for your shop and your story. Many shops have murals on the exterior of their buildings, so why not oneinside?Theonlythingisyoubetter like the finished product, because changing it isn’t as easy as moving a couple paintings or posters around. I once wrote an article about Luscious Garage in San Francisco, that converted part of its shop into an art gallery featuring the works of local artists. They curate it carefully, rotate the images every few months and the owners must have good taste, because the art is always A-List. If you want to do something that’s a little more conventional, hanging automotive art is always a winner, in my opinion. Whether it’s a giclee or a print, it won’t be cheap but you won’t need to apply for a small business loan either. A giclee looks more like the original and costs more, but digital prints are extremely affordable.

I have chosen four painters of automotive art whose works appear in body shop waiting rooms all over the world. I like their work and have chosen fourwithdifferingstyles. WhenI was in Italy recently visiting shops, I saw images created by at least two of the artists that I’m featuring here. Alan Fearnley: The paintings of British artist Alan Fearnley focus on classic and racing cars that feature people, architecture and landscape to accent the images. He has created more than a 100 automotive paintings on this subject, and 70,000-plus copies of his works sold worldwide, as well as three books published of his work. F earnley’s style has been described as impressionism, and I would bet that you’ve seen his images on prints, posters, albums, calendars, etc. Paul Chenard: Canadian artist Paul Chenard’s fine drawings using pencils and pastels have been popular for more than 25 years. His passion is for the history of automobile racing, which eventually led to collecting vintage toy racecars and then his illustrations. ‟Through my motorsports artwork, I’m trying to capture the feeling that the spectator has watching the race, their favorite driver in battle or the classic racecar at rest,” Chenard said in his artist’ s statement. “I’m also trying to feature the stories that give racing history depth and texture.” Michael Irvine: Working primarily with watercolors, Irvine is known for creating clean and sharp images that are alive with “color and narration.” This approach to watercolor, together with his background in illustration and his love of classic cars, has turned Irvine into a major player within the world of automotive art.

“My goal is to continually challenge myself. I want to give the viewer something they cannot see in ‘real life,’” Irvine said. “I always with Gary Ledoux Truck Topics with Bruce Roistacher Auto Body Attorney with Stacey Phillips National Associations Alan Fearnley focuses on classic and racing cars that feature people, architecture and landscape to accent the images Paul Chenard is well-known for his racing images drawn by using pencils and pastels

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The 1980’s – The Evolution of the “Patch Panel”

In the early 80’s, the term “patch panel” was still being used to describe non-OEsheetmetalbodypanelsused primarily to replace rusted-out rocker panels, floor pans, headlight buckets and the like. (In the 50’s, 60’s and 70’s, rust was a major problem. A car could be only three years old, be mechanically sound, but with rust holes already poking through rocker panels and fender wells, hence the need for “patch panels.”)

An early 80’ s trade magazine article noted that when the Big 3 were changing sheet metal design every model year, it didn’t make financial sense for the aftermarket to make fenders for such a short-run of a vehicle model. However, with Chevy pick-ups keeping the same basic body design for many years, it now made sense to invest in tooling to make the fenders in the aftermarket. Also cited as recently becoming available were fenders for the Chevy Chevette and Citation.

Fueling the “patch-panel” market, a number of aftermarket parts suppliers began to emerge.

Some sold direct to shops, while some sold through jobbers. Some claimed that their parts were better than OE, while some claimed some really poor -fitting parts were in the supply stream–but“notcarriedbytheircompany.” Some suppliers noted that they concentrated more on service rather than the part’s quality. Some suppliers noted that they offered a longer warrantythantheOEtorelieveanyapprehension that a potential customer may have. It was the “Wild West” days of the “patch panel” market.

By 1984, “patch panels” were startingtohaveanimpact. Onetrade magazine noted “Crash parts used to be a one source buy-OE parts from the local dealership. But seemingly , overnight, alternative buying sources have become available to collision shops… It’s a growing business that someday is going to be big business.” Also, in 1984, an ad for Collision PartsDistributorsofGrandRapids, MI touted availability for hoods, fenders, doors and grills for Datsun, Honda, Toyota, Mazda, Volvo, Audi, BMW, Fiat, Peugeot, Mercedes, Renault and Volkswagen as well as popular Chevy, Ford and Chrysler applications. A mid-1984 ad for Keystone body parts promoted front fenders for 80-84Fordpickups,tailgatesfor73-80 Chevy pick-ups and front fenders for 80-84 Oldsmobiles. The aftermarket body repair panels market was rolling. During that time, conspicuously absent from the growing number of trade magazine articles dedicated to the burgeoning body repair panel market was the mention of insurance companies and their insistence that the shop use more aftermarket parts. But that wouldn’t last long. By 1985, insurers began to prescribe aftermarket parts as a way to reduce severity and cost.

In the summer of 1986, a trade magazine articleaboutthedifference and growing controversy over OE versus aftermarket crash parts notes that it is “…the touchiest and most controversial situation to hit the collision repair industry many years.” The article notes that some people see nodifference.TheOE’sclaimthatthe aftermarket parts do not measure up, do not fit properly, are not properly rust-proofed and have less then desirable primer on them. The aftermarket claims that their parts are comparable to OE atlowerprices andsaves consumer’s money. The article notes that the controversy about aftermarket VS OE didnotreallystartuntilbody shops were forced, by the insurance with Ed Attanasio Shop Management with Gary Ledoux Truck Topics with Gary Ledoux OE Shop Certification with Stacey Phillips OE Shop Certification with Bruce Roistacher Auto Body Attorney with Stacey Phillips National Associations “We are getting parts with certified stickers and the parts still don’t fit. When people promote something that it is not, it is fraud in any other industry.” — John Loftus

companies, touseaftermarketVSOE. Prior to that, aftermarket parts were not given a second thought by most. Once they discovered aftermarket parts and the cost savings, more and more insurance companies began to call for aftermarket parts on an estimate. This, according to some, has caused a cost decrease for aftermarket parts. Aftermarket parts tend to be lower in cost for a number of reasons including, economies of tooling, labor costs (being made in countries where unions don’t exist), and priced at a niche-carving rate. And while the lower costs affect how much an insurance company has to pay for a claim, it also reduces the amount of money a body shop makes on parts. Shop owners maintained that aftermarket parts are not the same quality. They say they have to slot aftermarket fenders and other parts to make themfit. Aftermarketproponentsnote thatslottingmustbedoneonsomeOE parts,theresultofabadbodypull.(Let the sniping begin!)

Aftermarket parts were also criticized for inadequate rust-proofing. Ford Motor Company tested parts under a 500-hour salt spray test. Ford noted that generally, the aftermarket parts did not hold up. They said thatOE’suseasuperiorrust-proofing treatment that is not economically feasible for aftermarket suppliers.

Aftermarket opponents say that aftermarket parts are available only on a limited scale. While General Motors may carry 17,000 designated collision parts, aftermarket suppliers will have about 420 part numbers. Aftermarket suppliers carry only the most popularpartswhiletheOEhas to have every possible part available, something that also contributes to the higheroverall price ofanOE part.

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