BodyShop Business, July 2014 by Babcox Media

NACE Preview » Lessons from a Storm » Profit Centers

July 2014//Vol. 33 No.7

What to do when one of the mega consolidators comes to town.

SHOW ISSUE

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Inside

July July 2014

Vol. 33 No. 7

ON THE COVER Battling the Bigs Four small MSOs explain their strategy should one of the mega consolidators move to their block.

FEATURES

34 The Perfect Storm BUSINESS

A Philadelphia-based shop talks about the business lessons it learned after one of the worst winters in its history.

44 Clean That Booth! EQUIPMENT

Cleaning and maintaining your spraybooth is essential to avoiding costly redos and keeping a tidy shop.

54 Ringing Up the Profit BUSINESS

Add-on businesses can be just the thing to add a boost to your bottom line.

SHOW PREVIEW

64 Rev Up for the Motor City NACE 2014

The NACE/CARS Expo & Conference is taking place July 30Aug. 2, and what better place to have it than Detroit?

SHOP TALK Editor’s Notes

8 10 Detours 14 Clark’s Corner 20 Web Presence Management

Photo courtesy of Bill Bowen

After a run-in with a deer, I’m now your customer. It’s time for NACE/CARS!

What separates the “wow” shops from the “ugh” shops? Cybersecurity for your business.

BODYSHOP BUSINESS (ISSN 0730-7241) (July 2014, Volume 33, Number 7): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2014 Babcox Media, Inc. All Rights Reserved. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to BODYSHOP BUSINESS, P.O. Box 13260, Akron, OH 44334-3912. Member, BPA Worldwide

DEPARTMENTS Guess the Car ....................................................................................4 e-Buzz ..............................................................................................6 Industry Update ..............................................................................12 Tech Tips ........................................................................................30 Product Showcase..........................................................................100 By the Numbers..............................................................................104

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Guess

the Car Reader Contest! Win $50!

SOLVED!

What vehicle MODEL does this picture represent? Fax your guess to (330) 670-0874. Include name, title, shop name, city, state and phone number. Or submit your guess with our online contest form by visiting bodyshopbusiness.com/guessthecar. The winner will be randomly selected from correct entries and awarded $50. Entries must be received by July 31.

See the August issue for winner of Guess the Car #135.

Sonic boom = (Chevrolet) Sonic

*Only one winner will be selected. Chances of winning are dependent upon the number of correct entries received. Employees of Babcox, industry manufacturers and BSB advertisers are not eligible to enter.

#134

#136

July 2014 | BodyShop Business

#135

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WINNER

Andy Charnota, manager, Chicago Collision Center, Chicago, Ill.

Soup + RA = (Toyota) Supra

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They Said It On

e-Buzz

The latest online content from BodyShop Business June 18 — Attendees of the Sherwin-Williams EcoLean Workshop on the production floor of Michael Waltrip Racing...

Like • Comment • Share

: BodyShop Business Readers Group

Who’s responsible, and how do we fix this? Some would say that this is all the responsibility of the shop, some believe the problem is the DRP environment. I would suggest that both bear responsibility for work that is totally... Mark Schaech

Why You Shouldn’t Go to the First Shop Your Car Insurance Recommends youtube.com

http://www.packbrotherscollisioncenter.com/ Don't go to the first auto body shop your insurance recommends! It's your car, it's your choice! If you've had a significant repair to your vehicle, make sure you get a post collision repair inspection...

@BSBMagazine: Attention, young #automotive technicians! Don’t miss this event at #CARS2014:

Find 1,000’s of BodyShop Business articles online at www.bodyshopbusiness.com 6

July 2014 | BodyShop Business

bodyshopbusiness.com Defying the Odds Comment by stopdrp.com: Thumbs up! What you did is exactly what I'm fighting for: to bring the American Dream back. You’re living what I call the “American Dream.” You’re doing the same thing I did 25-plus years ago. Greedy Corporate America and crooked politicians make it just about impossible for anyone to live the American Dream. I am 100 percent in hopes of you being very successful, and I really believe you will be. There are a lot of people like me all over the country fighting for people like you, and we are going to win – not only in this industry, but all industries. Again, I wish you the best of luck! If there’s anything we can do to help you, please let us know. Comment by Bobby Brain: Unfortunately, you’re living in fantasy land. With all of the new advances in the automotive industry (e.g. aluminum, carbon fiber, fiber optics, AHSS at 1800 mpa, etc.), you’ll need to invest substantial amounts of capital in equipment and training all of the time. With the low labor rates, the insurance companies set it to be impossible to get any return on investment, making it a loser to be involved in the collision repair industry. The large MSOs will be the only shops out there to repair the new cars as they will have large designated shops that will have the equipment for those vehicles and have them towed to the locations. Comment by hippy: I don't normally like to comment on things, but I thought I should say a few words. I’m a body shop owner of eight years and have been painting cars since I was a kid in my father’s shop. I do it because I love it. I met Ben a while back and got along great with him right from the start. It’s refreshing to meet someone with passion and enthusiasm for what they do, especially when it’s the same thing you feel that way about. He doesn't treat me as competition. In fact, he once said to me, ‘We're bodymen, and we have to stick together.’ So congrats on the article, Ben!

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Editor’s

Notes

Publisher

S. Scott Shriber, ext. 229 sshriber@babcox.com Editor

Jason Stahl, ext. 226 jstahl@babcox.com

Oh Deer!

Managing Editor

Gina Kuzmick, ext. 244 gkuzmick@babcox.com

he deer strolled out in front of me with no warning. I was rounding one of the many curves on the scenic Shoreway in Cleveland that offers a fantastic view of Edgewater Beach and Lake Erie Friday night. I had no chance to react, smashing into it with the right front corner of my car at roughly 50 miles per hour and turning it into so many pounds of hamburger. I yelped a few choice curse words, but other than that sped along my (merry?) way toward home.

Once I arrived home, I grabbed a flashlight and inspected the damage. Busted fender. Smashed headlight. Cracked bumper cover. Bunged up hood. Smashed-in grille, with the front grille molding I had so lovingly Windexed that morning gone. Was the radiator damaged too? Possibly. I was devastated because I had fallen in love with the ’09 Honda Civic ever since purchasing it in November 2012. I loved how compact and fun to drive it was. I detailed it every week, applying tire shine to it and Windexing the chrome. That

Friday morning, I had even cleaned the glass with a microfiber cloth and water. I found myself firmly in the shoes of your average customer, and it felt awful. I texted a friend of mine who owns a body shop, and he set me up with a tow truck. I was impressed by the empathy shown by both the insurer and the shop manager, who both asked if I was OK. The call center rep even told me how she had hit a deer once as well. I don’t know if my friend’s shop is on my insurer’s DRP, but when I told her the car was already at that shop, there was no attempt to steer me somewhere else. Shortly after the incident, I got over my pain and realized the car would come back looking better than it had before. But I gained a new appreciation for what you’re dealing with: customers who are in a fragile frame of mind when they see their second biggest investment and the thing that takes them to work to feed their families put out of commission.

Jason Stahl, Editor Email comments to jstahl@babcox.com

Contributing Editors

Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, Tom Ferry, Curt Harler, Kristen Hampshire, Hank Nunn, Carl Wilson Graphic Designer

Lisa DiPaolo, ext. 281 ldipaolo@babcox.com Advertising Services

Kelly McAleese, ext. 284 kmcaleese@babcox.com Director of Circulation

Pat Robinson, ext. 276 probinson@babcox.com Director of eMedia

Randy Loeser, ext. 285 rloeser@babcox.com Subscription Services

Ellen Mays, ext. 275 emays@babcox.com Tel: (330) 670-1234 Fax: (330) 670-0874 Website: bodyshopbusiness.com Corporate

Bill Babcox, President Gregory Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Scheetz, Controller A limited number of complimentary subscriptions are available to those who qualify. Call (330) 670-1234, ext. 288, or fax us at (330) 6705335. Paid subscriptions are available for nonqualified subscribers at: U.S.: $69 for one year. Canada/Mexico: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via air mail: $129 for one year. Payable in advance in U.S. funds. Mail payment to BodyShop Business, P.O. Box 75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.

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Detours

By S. Scott Shriber, Publisher

It’s Time for

NACE/CARS! ell, it’s time to pack our bags and local attractions. Our friends, the Canadians, head to our very own collision are just across the river in Windsor with all trade show. Yep, NACE/CARS is that they have to offer and see. The city is in here for 2014. I have to tell you the middle of a renaissance, and you owe it to that I’ve been inyourself to come and see all volved in much of that it has to offer. the planning, and I If you’re a car person, what can assure you that more do I need to say? This is ASA has developed the Motor City – Telegraph, and organized a Woodward, The Rouge, the show to remember. I Fisher Building and on and on. urge you to go to The Saturthe website day sched(www.nace ule is so full expo.com) of activities and see all to do, you the great couldn’t get events and it all done if educationyou stayed al opporthe followtunities to ing week. participate Just take a look at in. Detroit will be the collision the “Places to Go” mecca July 28-Aug. 2. on pg. 66 and you’ll From a professional standsee what I mean. point, the educational offerings There are over are unbelievable. Whether 6,000 collision you’re looking for technical repair shops within know-how, industry trends, a four-hour drive; business procedures or the latthis is the place to est repair techniques, it will all be in late July. It has be available in Detroit. The sup- (Clockwise from top) The Tigers, Greenwich been a long time port from the automobile manu- Village, Woodward Dream Cruise and Motown since our show has tour all await visitors to Detroit. (Photos facturers this year is nothing been here in our courtesy of MeetDetroit.com) short of incredible. If it’s in our neck of the woods, industry, you can learn about it there. and we should all get together and see what’s If you’re looking to kick back and enjoy a new. Our entire team will be on hand, and we big city, there’s lots for you to do. Downtown look forward to seeing you there and talking Detroit is home to the Tigers, Lions, Red about the industry. Wings and Pistons, as well as many other See you in Detroit!

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Industry

Update

Sherwin-Williams Talks Lean at EcoLean Workshop in Charlotte Sherwin-Williams Automotive Finishes held an EcoLean Level 1 Workshop June 17-18 in Charlotte, N.C., providing collision repairers the essentials of running an efficient shop and also a glimpse of Joe Gibbs Racing and Michael Waltrip Racing. Steve Feltovich, manager of Business Consulting Services, led the first day’s discussion, talking about the general principles of lean and the Toyota Way. The following day, Judy Lynch, manager of Collision Repair Design Service, went over the principles of 5S.

BodyShopMedia.com Urges Body Shops to Use Power of Social Media t wasn’t long ago that an anonymous body shop owner created StopDRP.com to educate consumers on steering, appraisal clauses and diminished value. Now, another anonymous shop owner has created BodyShopMedia.com, urging collision repairers to use the power of social media (especially Twitter) to communicate with one another and unite over issues such as PartsTrader and not getting paid for procedures necessary to return vehicles to their previous condition. A statement on the homepage of the website states: “We are a private firm looking out for the collision

I 12

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industry. We are connecting body shops across the U.S. to see what everybody else has to say. This blog is for all of us to share our opinions and thoughts. As cars get more technical in the industry, we can share advice and ideas with each other. We hope you make friends on here and also get some good ideas.” The site has a “Shop of the Month” contest where the winner is the shop with the best tweet. It also has a link to StopDRP.com and a video showing tips and tricks when using certain collision products. There is also a video of George Avery explaining why State Farm created PartsTrader. Circle 120 for Reader Service »

»| Industry Update |«

Florida Judge Denies Insurers’ Request to Dismiss Body Shops’ Lawsuit he Honorable Judge Gregory A. Presnell, senior U.S. district judge for the U.S. Court for the Middle District, has filed an order in an effort to attain more specific information relative to the lawsuit initially filed by 20-plus Florida auto body repair shops against dozens of insurers. In an effort to gain a more thorough understanding of the issues leading to the lawsuit, Presnell dismissed the case without prejudice allowing the plaintiff attorneys to modify, amend and replead the complaints to meet the court’s request. The judge has asked that the plaintiffs provide a more detailed complaint listing specific actions or inactions by each of the defendant insurers, along with the specific damages relative to each, on or before June 27, 2014. In another ruling, Presnell dismissed the defendant insurers’ request for the court to dismiss the repairers’ lawsuits which, by way of the judge’s ruling, were “moot” and summarily denied through the judge’s dismissal. This lawsuit is similar to those filed in Mississippi and other states by Attorney John Eaves Jr. earlier this year on behalf of a group of body shop owners who accused more than three dozen insurance companies of conspiring, through DRPs, to manipulate labor

rates and other shop charges to reduce their claim costs. The suit alleges that State Farm is at the heart of an effort by insurers to suppress labor rates, coerce shops into accepting less than actual or market costs for materials, refuse to pay for many required procedures and punish noncompliant shops through steering. The suit alleges these actions constitute tortious interference, unjust enrichment and violation of Sherman Act price-fixing and boycotting prohibitions. These actions, the suit states, place the shops in “the indefensible position of either performing incomplete or substandard repairs and thus breaching their obligations to automotive owners to return vehicles to pre-accident condition, or performing labor and expending materials without proper compensation.” The suit also seeks an injunction prohibiting the insurers from “directing, advising or otherwise suggesting that any person or firm do business or refuse to do business” with any of the named shops; using boycott, coercion or flat-rate manuals to establish or control repair shop pricing; and requiring the shops to participate in any parts procurement program (i.e. PartsTrader) and unspecified compensatory and punitive damages suffered by the represented shops.

North Carolina Collision Shop Wins Short-Pay Arbitration Over Allstate Pack Brothers Collision Center in Belmont, N.C., has won a short-pay arbitration case in a North Carolina court against Allstate. On May 27, a Lincoln County judge ruled in favor of awarding a Pack Brothers customer $891.72, which was owed to the body shop for collision repairs that the in« Circle 121 for Reader Service

surer refused to pay after the insured’s car was fixed. The short-pay litigation was filed by Ronnie Pack, owner of Pack Brothers, on behalf of his customer using a Power of Attorney. According to the insured customer’s policy, Allstate is obligated to pay for necessary and proper repairs of his ve-

hicle. The total amount charged for repair of the vehicle was $3,445.27, but the insurer only paid $2,503.55 for the damages. The customer is entitled to the full amount of $891.72 owed to Pack Brothers plus interest accrued since his accident, attorney fees and any other punitive damages.

Illinois Body Shop Owner Posts Feather, Prime and Block Video on YouTube n Illinois shop owner has created a 20minute video and posted it on YouTube to demonstrate all of the steps in the feather, prime and block procedure that must be performed to bring a repair panel back to a new, undamaged one. Russ Hoernis of Hoernis Auto Body in Belleville, Ill., starts off the video by stating: “Feather, prime and block is a refinish operation that for years has been snubbed by the insurance industry as either an included operation in repair times, or they have just been unwilling to compensate shops for the work and materials utilized. I have researched the CCC, Audatex and Mitchell manuals, and each estimating system has independently stated that feather, prime and block is a necessary operation that must be performed to bring a repaired part back to a new, undamaged panel. Each manual also clearly states that published refinish times are for new, undamaged panels.” After documenting the entire operation, Hoernis goes over the labor and materials used and ultimately calculates that not getting paid for this results in roughly $50,000 per year in lost revenue to his shop. Hoernis concludes the video by saying, “I hope for whoever is watching that this clarifies some of the issues we are up against.”

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Clark’s

Corner

By Mark Clark

Separating the

“Wow” from the “Ugh” n several classes I teach for paint, body & equipment (PBE) jobbers, I describe the universe of American body shops as follows: 5 percent: Ugh! These shops have no interest in calculating financial numbers of any kind, improving their production efficiency (what’s that?) or new and faster equipment. They’re too busy fixing cars to get any better at it. 30 percent: Good. These shops know they should be measuring performance somehow and organizing their workspaces more efficiently. They also understand that more productive equipment would eventually pay for itself but are unclear how to make any time to implement those needed improvements because all their repairs must be delivered by noon this Friday. 30 percent: Better. These shops have figured out that the only way to make serious money in collision repair is to beat the flat rate times at every opportunity. They measure a few numbers, the painters mix most of their liquid over an electronic scale, the shop sets aside some funds annually to buy faster equipment and even holds occasional meetings with their techs to discuss how they can improve. 30 percent: Best. These shops are tracking numbers all the time. From production efficiency percentages to parts-to-labor ratios, close rates to sales mix (how much of their sales are labor, parts, P&M and sublet), they know where their shop performance stands today and have specific future

July 2014 | BodyShop Business

goals to meet. They communicate regularly with everyone in the shop, from the detail kid to the receptionist, and all employees have clear performance targets. These shops got to where they are through lots of hard work and consistent followthrough. 5 percent: Wow! These top performers also know that communication is key and that they can’t identify a win if they don’t keep score of everything all the time. They share numbers with managers, have regular shop meetings to examine current performance and receive feedback on improving it. They mix every drop of liquid over their smart scale and tie all of it to an RO number, have the fastest, latest equipment because they know speed pays, and get up every morning with a goal of getting better by nightfall. Of my five shop segments, these folks are the easiest to identify. Walk from the parking lot to the office to the shop floor, look around and say “Wow!”

Clean as a Whistle » As I travel around the country, I’m often invited to the local super shop. “You gotta see this guy,” my host says. These various “wow” body shops have lots in common with each other, which is not surprising since all body shops are in the same business and these businesses have clearly excelled at it. First, second, third and fourth on all the superior players’ shop checklists is “clean.” As every insurance company survey ever

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»| Clark’s Corner |« conducted has concluded, a clean presentation is No. 1 on the consumer’s preference list. Every year, every survey, forever. One thing that usually distinguishes the wow shops from the best shops is their production

spaces. Best shops look super professional and clean from the front. Their parking lots, windows, waiting areas, estimating bays and sales offices all sparkle. Their shop spaces often look like dirty, dusty collision repair takes place in them.

Wow shops’ production spaces are just as clean, well lit and organized as their front ends. All that extra care is worth it because they turn out top-quality repairs really quickly – just what the insurers’ CSI surveys all want to see. When you step through the door into these shops’ production spaces, the first thing out of everyone’s mouth is, “Wow!”

Presentation » Wow body shops all seem to have great signage both outside and inside. On the exterior, the lighted, professionally made signs look big-time retail. Say what? Illuminated signs from full service, commercial sign companies are very expensive. These wow shops all had the nearby stamped-vinyl place do their inside signs but paid the big bucks for real-deal outdoor advertising signs. The parking and estimate areas are clearly marked with even more professional signs. In no uncertain terms (two signs for every command), they direct apprehensive customers where to go next. Not to mention the entire lot itself is squeaky clean – there are no weeds anywhere, there are mowed and trimmed grass areas (it does look cool), parking stall lines are freshly painted, and there is a shaded cover if the shop is in an extra sunny market. Check out the sparkling glass, too. The difference between a $200 auto detail and a $5 car wash in part is the glass. Wow shops keep all their window and door glass crystal clean every day. It’s a subtle clue, you think, but next time you’re shopping at the mall, check the big retailer’s display glass. Smudge-free glass makes a difference and sends the “we care” message your shop would like your potential customers to hear. Circle 16 for Reader Service

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»| Clark’s Corner |« Inside the brightly lit reception areas, the top shops have waiting spaces as nice as the ones in doctors’ offices. Plus, there’s free Wi-Fi and professional seating areas with attractive furniture (nothing left over from the owner’s old living room set). Current issues of both this week’s photo and news magazines are racked neatly nearby. A kid’s play area and a guest desk or two for those trying to work while their estimate is created sends the thoughtful message of, “We’re glad you’re here, and please be comfortable while we complete the paperwork” – even if the customer doesn’t have kids or a critical work project.

Perception Is Everything » Notice that none of my body shop segment descriptions had

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anything to do with actually fixing the collisions. I’m willing to concede that even the “ugh” shops could perform a safe, attractive repair. My point is that Mrs. Smith (my universal consumer) won’t give them the chance. If your shop doesn’t look as nice as your best-looking competitor, it doesn’t matter how good your techs are or how accurately your equipment performs. She wants to go somewhere that looks like they’ll take good care of her second-most valuable possession. It isn’t easy; neither the best shops nor the wow shops were born looking like that. It takes a major daily commitment to keep everything clean and dust free. It takes an ongoing commitment to buy better equipment, train faster

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processes and constantly improve. It takes an iron-clad will to persevere in the face of the many obstacles on the road to top performance. Wishing your shop were better won’t help. Make those business improvement commitments and the next time I’m speaking in your area, the locals will want to take me to your wow shop. I look forward to seeing it. BSB Mark R. Clark is owner of Professional PBE Systems in Waterloo, Iowa. He’s a popular industry speaker and consultant and is celebrating his 26th year as a contributing editor to BodyShop Business.

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Web Presence

Management

By Mark Claypool

Cybersecurity

for Your Business assword: fluffy1234. One of our clients asked us to use this for setting up his email, telling us it was the name of his wife’s cat. “Admin” was another client’s request for a username, and he wanted his password to be 1234. Nope! No way, no how! We vigorously refuse to put unsecure passwords in place. “But they’re hard to remember, I have so many of them,” said one business owner. “I just keep them all the same, it makes it easier to keep it all straight,” said another. And that makes it easier for thieves to make life a living nightmare. If you haven’t been And if they aren’t they are, at the impacted by identity thieves, very least, vandals.

theft, hacked emails and websites or data breaches, consider yourself lucky.

Real Threats »

Consider this a warning shot across your business bow. There are plenty of people out there gunning for weaknesses in website passwords, email passwords and databases with information of value – names, addresses, phone numbers, email and credit card information. How secure are you and your business? Threats to your cybersecurity are all too real. If you haven’t been impacted by identity theft, hacked emails and websites or data breaches, consider yourself lucky. To protect yourself – and your business – from cybersecurity threats, you need a plan.

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Here are nine things you need to address: 1. Policies and training: Set up rules and policies to protect your business. Have systems in place, then train employees and set up consequences for non-compliance. 2. Passwords: Strong passwords need to be set up. Here’s a free source for the creation of a highly encrypted password: http://passwordsgenerator.net/. Some policies to follow include: 䡲 Don’t use the same password across multiple accounts. 䡲 Passwords should be at least 15 to 20 characters long and include numbers, upper and lower case letters, and symbols. 䡲 Don’t use family names, initials, pets, birthdates, addresses, towns or full words in general, phone numbers or mathematical sequences as passwords. 䡲 Do not permit your browser or FTP client programs to save your passwords. Any password saved in this manner can easily be discovered with a single click using some programming script. 䡲 Do not access important, passwordprotected accounts from public computers or someone else’s computer. 䡲 Change your passwords regularly. Monthly is best, quarterly at the very least. 䡲 Keep passwords straight using phone apps or an online password management system. PC Magazine suggests the following: KeePass (free, download to your computer), www.keepass.com; LastPass (free, cloud-based), www.last pass.com; RoboForm Desktop 7 (for

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»| Web Presence |« one PC), or RoboForm Everywhere 7 (multiple PCs) (from $29.95) www.roboform.com. Alternatively, save your passwords as plain text, then encrypt them with AES Crypt or AxCrypt. 䡲 When employees leave the company, change all passwords that person was familiar with. 3. Virus/malware protection: Your computers must have the latest virus and malware protection installed and operating. It must be updated regularly, then have a full scan run after each update. 4. Firewall: A firewall should be set up for your company’s Internet connection. Talk with an IT professional about what that entails. Firewalls protect your private network data from being breached by outsiders. 5. Mobile device protocol: Mobile devices used by your team can pose significant threats. They may contain confidential information and are frequently used to access company networks. Password protect these devices, and have security apps installed. Encrypt all important data. Devices connecting to public networks at coffee shops, libraries, schools, etc., are particularly vulnerable to attack. 6. Back up data: Nothing is sacred. Back up your data regularly. Email, documents, spreadsheets, databases, accounting files, HR files, etc., are irreplaceable and should be backed up regularly, preferably automatically. Services like Carbonite or Barracuda are great for this purpose. If you make your own backups, put them on two external drives and keep them in a safe deposit box. Alternate these drives with each backup. 7. Wi-Fi: Secure your company Wi-Fi account with a highly enCircle 22 for Reader Service

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crypted password, which will help block outsiders from getting into your company network. If you offer a public access point for customers to use, make it separate from your business network. 8. Credit card processing: Work closely with whatever service you use to process credit cards and make sure you’re using the most trusted, validated and anti-fraud system possible. Use an isolated computer for these transactions, not one used for going online. 9. Give limited access: Give access to employees only on a need-to-know basis, only for the processes they use. No person other than the owner should have access to all this information. We call this having the “keys to the castle.” Give these keys to a trusted attorney who’s in charge of the owner’s estate should something happen, with strict instructions that these be given out ASAP to a specific person in the event of the owner’s demise.

Not So Hard » Sure, it’s hard to do all this, but it’s much harder to fix a data breach, undo the damage done by hackers and apologize to customers for their personal information being stolen. Set a goal to get this done before the end of the year. BSB BSB Contributing Editor Mark Claypool has more than 30 years of experience in the fields of workforce development, apprenticeships, marketing and Web presence management with SkillsUSA, the I-CAR Education Foundation, Mentors at Work, VeriFacts Automotive and the NABC. He is the CEO of Optima Automotive (www.optimaautomotive. com), which provides website design, SEO services and social media management services.

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COVER STORY

Four locally owned small MSOs share their thoughts on how they plan to retain their market share should one of the mega consolidators move to their block. By Gina Kuzmick

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COVER STORY » Battling the Bigs

n a world where Walmart and McDonald’s reign supreme, it’s sometimes difficult to even see the mom and pop shops of yore beyond the bold red letters and golden arches that seem to adorn every other block in America. But we as consumers know they’re out there, and they still retain their own loyal followings to stay in business and stave off competition. As members of the collision repair industry, we often divide ourselves into two categories: the big guys vs. the little guys. But what about the in-betweeners? What are they doing to keep their businesses thriving and out of the hands of mega consolidators? Ask Pat Beavers, managing partner of CollisionMax in Philadelphia, and he’ll tell you that his business’s experience and knowledge of their market gives them the upper hand. Since its inception in 1977, the business has grown to 11 locations between Pennsylvania and South Jersey. With Service King’s recent purchase of Sterling Collision Centers, the large-scale consolidator will be moving into CollisionMax’s area, which means it could potentially disrupt their relationship with insurance carriers. “As we view it, the ‘Big Four’ all have national relationships with insurance companies and we are a pro-direct repair organization,” said Beavers. “So we are concerned that [Service King] could have an impact on our claims and customer base. The highlevel relationships they have could impact our relationships that we’ve worked to develop for years, but that’s the unknown for us.” Despite this concern, Beavers is reassured that CollisionMax will uphold its longstanding presence in the Philadelphia market. “We’re local, family owned and operated, and we’re not a franchise,” said Beavers. “Almost a third of our people have been with us for 10 years, so there’s a strength over a new corporation that’s not from the market and doesn’t understand some of the market nuances. We can touch our 11 locations in any given day, so we’re accessible to all our stores because of proximity.” To maintain that feeling of proximity, Beavers regularly meets with his management staff to discuss performance and how to maximize the business in

its market as much as possible, which includes expanding the company’s brand identity. “We’re working on our name in our market and having some top-of-mind presence with the retail consumer so they identify us in the markets we serve as the shop of choice,” he said.

Forming Alliances » Beavers also points to another unlikely reason for CollisionMax’s success: his current, local competition. By keeping an eye on one another, CollisionMax and similar wellestablished shops in the area have been able to stay on their toes and create their own exclusive and competitive marketplace. “If we didn’t have some of the good operators in our market already, we probably wouldn’t be as advanced as we are,” he said. “I think because of our competition locally, we and our competitors have made a market that may not be that easy to come into and take over because we have all watched each other and didn’t ignore each other – and our companies got better as a result.” Similarly, Richard Fish, owner of Coast Collision Centers in Oceanside, Calif., actually admires collision giant and local competitor Caliber. “They’ve always had great prowess in terms of marketing, and they’ve been able to strike big deals with insurance carriers,” Fish says. “That gives them great precedence over other MSO organizations, and that’s always a challenge.” Fish has been in charge of Coast since 1996 and now owns four locations in the San Diego area. He attributes his success to implementing lean practices and Six Sigma in his business, but also allying with Fix Auto. “Being aligned with Fix Auto allows me to have my cake and eat it, too. I’m the owner and operator of four body shops. If I were branded on my own, I would have felt the market demand to be up to six to 10 body shops, so [my alliance with Fix Auto] will allow me to grow at a pace I feel good about.” Fish says that aligning with the Fix Auto name will give his shop boosted marketing power as well. In addition, he’s linked to a number of “peer shops,” which grants him opportunities to scope out the friendly competition and gain ideas as to how to improve his own business model. “When you see someone doing something notably better than you time in and time out, there’s a paternal feeling there that allows you to reach out to those shops and ask how they’re doing it so much better than you,” he said. “You might end up even going to visit them to share their www.bodyshopbusiness.com 25

COVER STORY » Battling the Bigs best practices, and that collaborative atmosphere is something that’s very powerful.”

Eye on the Competition » Fish believes in acknowledging the competition rather than ignoring it. “I think ignoring the competition is shortsighted and would prevent

you from learning about some innovation that a competitor might be bringing to the table,” he said. “Having said that, I wouldn’t spend too much time focusing on it. We’re focusing on our own level of excellence, knowing full well that if we achieve that there are very few competitors who can keep up.”

Keys to Maintaining Market Share in a Consolidation Environment 1. Aligning with an established name or improving your brand identity. 2. Understanding market nuances. 3. Establishing a strong company culture. 4. Being an active and proximate owner. 5. Knowing your competitor in and out.

However, like many businesses, some worries still creep up in the back of his mind. “I’m a buyer, so the thing I worry about now is the fervor that’s happening in the marketplace in terms of valuations. With Service King coming through the market recently through the acquisition of Sterling, and Caliber continuing to expand in Southern California, you would think they have enough market positioning in the area, but apparently they don’t think so. I hope I don’t get priced out of the valuation marketplace.” Still, some shops say that large consolidators haven’t had any impact whatsoever on their respective businesses. For Jacob Nossaman, owner of Collision Works in Del City, Okla., the key to keeping neighboring giants Caliber and Service King away is to implement a strong company culture and employee environment. “I feel that if you focus on your organization with 110 percent each day, then the competition is not an issue,” he said. Established by Nossaman in 2001, Collision Works has grown from two to four locations in its marketplace. One of the factors that allowed his business to grow was using a management software platform that’s specifically designed for large single-shops and small MSOs. Circle 26 for Reader Service

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COVER STORY » Battling the Bigs “The management software is also your accounting software, so you do everything out of it,” he said. “It improves accuracy and allows you to look at multiple locations off of your PDA. You can be anywhere and you’re still at your office.” While Service King and Caliber

have more buying power as corporations, Nossaman is confident that Collision Works’ stable, small business model will give him the advantage. “I’m the owner and I’m involved,” Nossaman says. “We run a family-oriented, locally owned business. There’s no corporate

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red tape; we make decisions and connect fast.”

No Threat in Sight » While consolidators continue to sweep across the nation, there are still some parts of the U.S. that haven’t yet felt the impact. Conner Brothers in Richmond, Va., is a small, family-owned business with four locations and no mega-consolidator in sight. But that doesn’t mean it’s not on owner Kevin Conner’s mind. “We’d have to step up our game if they did come to town,” he said. “They could really take a lot of work from us.” Although the shop is out of the hands of consolidators for now, Conner says he still wants his staff aware of the potential threat they pose. He meets with his manager every few weeks to discuss strategies that can help to improve their business model – and keep the big guys at bay. Because according to him, losing to the competition stems from ignorance – something he doesn’t want to succumb to. “Having not experienced [consolidation in our market], I think my biggest fear is ignorance. We don’t know what to fear.” While some might turn a blind eye and deny the fact that consolidation is indeed a threat to many shops, Conner says he actually looks forward to learning more about the topic. “If you don’t know your competitor inside and out, all you’re doing is setting yourself up for defeat. They’re going to eat you alive.” These four businesses each shared one commonality that’s allowed them to keep mega consolidators at bay: the involvement of an active and proximate owneroperator. And as long as their owners stay active, the customers will keep on coming. “I plan on being in the business for many years to come, so the prospect of selling my company isn’t on the table,” said Fish. BSB

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Tech

Tips

By Karl Kirschenman

What Are Your Top Five Repairs? ou want to hear a great horror story? Ask a collision shop owner. Most of them start with, “Remember that car we worked on…?” You’re probably thinking, “Yeah, everyone has a few of those stories. What’s the big deal?” But the story only starts with “that car;” the horror enters when you have to pay your parts bills and do your payroll. Yeah, that’s the horror story I’m talking about! As you’re cutting checks, you remember all the time your staff wasted working on “that car” with three techs not producing revenue because they were standing around with their chins in their hands. The clock was ticking and dollars signs were flying out the window. It just goes to show that it’s almost impossible for anyone to keep up with the latest vehicle technology. Electronic systems, alternative materials, new construction techniques designed to save weight, tricky engineering to improve aerodynamics, etc. I can listen to shop horror stories for days on end, and it drives me to look at the most searched for repair procedures in our database to see what’s causing those stories. As my grandfather always told me, “It’s easier to learn from someone else’s mistakes.” Too bad I didn’t heed his advice when I was younger. The older I get, the wiser the “ol’ man” gets. In the May 2014 issue of BodyShop Business, we told you about the most requested OEM procedure from ALLDATA Collision, which was the removal and replacement of the front bumper fascia on a 2014 Jeep Grand

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Cherokee. For this month’s Tech Tips, I decided to focus on those top articles that folks are currently looking at to give you some insights into what other shops are running into right now. Here are five of the most requested vehicles/repairs among subscribers to ALLDATA Collision. See if any of these ring a bell for you.

perform their R&I operations. The repaired door must be airtight. Anything that compromises proper pressure within the door will generate a code. Something as seemingly insignificant as a broken clip may be the culprit. You might say you’re under a lot of “pressure” to get this job right.

2014 Ford Fusion

2013 Hyundai Sonata DTC B1742 – Airbag Event #1 (Front Driver’s Side Door/Pressure-Side Impact Sensor) So you repair damage to the front driver ’s side door on a Sonata, including the airbag and side impact sensor. You’re ready for a break before the next job, but the airbag light is still lit. Unlike a conventional acceleration sensor, this vehicle is equipped with pressure-side impact sensors that sense air pressure in a distorted door at the time of a crash. The SCM detects the impact signals of the pressure-side impact sensor and does its electronic magic to determine if the driver is going to get hit upside the head with a puffy white bag. Verify that your techs are properly reassembling these doors after they

Front Door Skin Panel If you’ve ever had to perform this repair, you already understand why so many technicians may need OEM information to do it right the first time. To put it bluntly, this procedure is a bear. Removal of the skin panel begins with grinding it off along the perimeter of the door. Then, the original adhesive residue must be trimmed off with a utility knife. Replacement requires bonding the panel with adhesive and MIG welding in two spots. I guess this procedure could be called a “skin panel Fusion.”

2014 Jeep Grand Cherokee 4WD Frame – Lower Front Rail The new 2014 Jeep Grand Cherokee may look pretty hot, but Chrysler says to save the heat when working on the new SUV because it uses an “extensive amount” of high-strength steels in this vehicle. However, many of you will be delighted to hear that Chrysler has produced sectioning documentation for the new Grand Cherokee. The lower front frame rail procedure calls for sectioning the rail 90 millimeters in front of the cradle bolt center-line

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»| Tech Tips |« and to use butt-joint welding with a .75-inch backer. And don’t forget to apply corrosion protection per OEM specifications. Just an FYI, Chrysler uses structural adhesives in the 2014 frame rails as well. If the sectioned component fails, the results might not be so “Grand.”

2014 Toyota Corolla Quarter Panel Sections While you’re not supposed to use heat on a Grand Cherokee’s body panels or frame components, Toyota says you need heat for removing and replacing the quarter panel on a Corolla. The procedure cautions against too much heat, which may deform the panel. R&R on the quarter panel is not a walk in the park. It involves adhesive, body sealer and the three weld brothers: plug, spot and butt. The devil is in the details for a proper repair.

2014 Chevrolet Silverado 1500 4WD Front Bumper Lower Shutter Actuator Replacement Remember when bumpers were just pieces of metal? Bolt off, bolt on. Of course, bumper assemblies are a bit more complex now. For example, the bumper/grille assembly on a 2014 Chevy Silverado includes a shutter component designed to close when the need for engine cooling is reduced. Why? Well, when you’re driving your Chevy to the levee, the shutters may close down to increase the truck’s aerodynamic qualities and performance. It’s all aimed at boosting MPG. The removal procedure describes carefully disassembling links, tabs, electrical connectors, actuators and louvers. The emphasis is on “carefully.”

you encountered any of these vehicles yet? Always be sure to check the latest OEM information so you can guarantee that your shop delivers safe, efficient and properly repaired vehicles. The way technology is evolving, it may not be long before there is a whole new slate of candidates for the most requested collision repair procedures. NOTE: This repair/service information is excerpted from information published by the vehicle manufacturer, and intended for the purpose of promoting OE collision repair information to trained, professional technicians with the knowledge, tools and equipment to do the job properly and safely. Before attempting any repairs described, refer to the complete article in ALLDATA Collision S3500. It’s recommended that these procedures not be performed by “do-it-yourselfers.” BSB

Evolution » Yikes! It’s getting more complex out there every day. So, have

Karl Kirschenman is ALLDATA’s collision product manager, focused on providing simple, innovative and best-in-class products that contribute to efficient, safe and quality automotive repairs for the collision repair industry. Prior to joining ALLDATA, he was the director of technology for I-CAR, leading the corporate technology team and supporting operations in North America, Canada and Australia. He holds a bachelor of science degree in communication, and has over 10 years of experience in the collision industry. © 2014 ALLDATA LLC. All rights reserved. All technical information, images and specifications are from ALLDATA Collision S3500. ALLDATA and ALLDATA Collision are registered trademarks of ALLDATA LLC. Hyundai and Sonata are registered trademarks of Hyundai Motor Company. Ford and Fusion are registered trademarks of Ford Motor Company. Chrysler, Jeep and Grand Cherokee are registered trademarks of Chrysler Group LLC. Chevrolet and Silverado are registered trademarks of General Motors Company. Toyota and Corolla are registered trademarks of Toyota Motor Corporation and/or Toyota Motor Sales, USA. All other marks are the property of their respective holders.

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BUSINESS

The

Perfect Storm

f Old Man Winter had an axe to grind, this winter was certainly the year he decided to do it…and boy did he make that sucker sharp! With more than 60 inches of the white stuff and 13 separate storms, we had the third highest snowfall ever in the Philadelphia area. Without question, this winter was a collaboration of perfect “storms.” In the modern collision repair era, it has never taken longer to process estimates, customers and claims. As a regional MSO in the Philadelphia area, the average amount of time it takes us to document damage and process an estimate for our insurance partners is one to two hours per vehicle. Combine that with the amount of claims, which were up approximately 20 percent over last year due to the weather, and you’re talking major delays. And I haven’t even

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We had to throw out all we learned from Six Sigma when systems, computers and power disappeared after one of the most brutal winters on record. The lesson? Our people are our greatest asset. By Lou Berman

touched on other factors that delayed the process. In fear of sounding like someone crying hunger with two loaves of bread under my arms, let me state that my goal in writing this article is to share what we went through last winter to hopefully impart some lessons that the average shop can learn from and

use to improve their own operations. After all, it’s extremely important that we, as our industry moves forward, meet any and all challenges, expected or unexpected, in an efficient and effective manner.

Extended Hours » Before I decided to write about this challenging winter, I interviewed all of our stores and most of our administrative and office personnel, asking them how they got through it all. The common theme among them was: they came in early, stayed late, and performed temporary repairs to buy more time and make a vehicle drivable to A) avoid an unnecessary delay to the customer and B) allow us to get caught up. Extended hours and double shifts were the standard over this winter and not the norm. Our version of extended hours was 6 a.m. to 7 or 8 p.m.

BUSINESS » The Perfect Storm We subcontracted help to assist us with much of our administrative duties. We also had out-of-pocket expenses for rentals due to delays on repairs, even though they weren’t our fault. Here are some other expenses we had to deal with:

A. Overtime for techs. Based on missed days, weather, etc. B. Car rental. Due to weather, parts delays, injuries, manpower, etc. C. Subcontractors. We hired additional administrative temporary staff and second shift evening techs to make

5 Lessons Learned from the Storm

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1. Tie up your loose ends and evaluate all of your policies and procedures. You can’t fix these problems when your shop is in crisis and you have no techs, adverse weather, no parts, etc. Make your improvements and become as efficient and lean as you can. This will serve you better than you could hope for in a time of extreme challenge. 2. Being proactive is the key to a calm, understanding customer. Make that preemptive call or text, advising them of winter-related delays/challenges. 3. Schedule, schedule, schedule! Live and die by the schedule. You want to help a customer in need but you only have so much production capacity. The road to hell is paved with good intentions…and how true that is. In our opinion, customers give you only about a 24- to 48-hour grace period regarding weather-related delays. A big component of this is parts. Our CEO, Val Fichera, is known for saying, “You can’t make the dinner without the groceries!” If we could do it all over again, we would have turned off some accounts in the few locations that suffered power outages. Even when customers come in and see we’re without power, as they probably are too, they sometimes still expect that we’re going to repair their vehicles in record time. They just don’t understand the dynamic of production and orchestrating collision repair and all of the components that need to be in sync to make the miracle of what we do happen on a consistent and timely basis…and please both the vehicle owner and insurance company. 4. Warn employees as much as possible about the dangers of the weather. Snow shoveling and even walking can be hazardous. While we all want to step up to the plate and hit a home run, we need to be mindful of our employees first, keeping them healthy and able to produce effectively. Collision Care is a company that has always relied on and valued our employees. We’re proud that we have one of the best employee retention rates in our region. This storm reminded us that the engine that drives this company is not our process or procedures or Six Sigma but our people. We couldn’t have been prouder of our employees for stepping up when the systems failed, computers went down and the power disappeared. This company still ran well! 5. Be flexible. We certainly were not more efficient during this storm. We were so accustomed to the efficiency we developed through our Six Sigma training and implemented at all our stores that we had to revert back to the “old way” of doing things, like ordering parts from cell phones. We had to adjust on the fly and adopt the Marine-type mentality of “Improvise, Adapt and Overcome.” From that standpoint, our company got stronger because we had to operate without our big guns and no cover. At the same time, it was a measure of our company’s X factor of talent. Who can think on the fly, outside the box and outside the system? It was kind of like a flight simulator that’s doomed to fail. Nothing was working. Computers were down, parts were hard to come by, raw materials were at a standstill, etc. If you can produce in that kind of environment and still keep your vendors, it’s a testament to your company. (Side note: in the last quarter of the year, our CSI remained at a constant high, helping us achieve an AutocheX Premier Achiever Award from Mitchell International.)

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BUSINESS » The Perfect Storm up production from “over in-flow” (when you take in more than you can effectively produce in our cycle time goal of eight days keys to keys). D. Snow plowing. We had to do this 15 separate times. Includes lot maintenance, salt, etc. E. Additional parking. We rented lots adjacent to our stores for car storage, etc. F. Damage to cars in lots. There were so many cars in tight spaces, we saw a large increase in lot damages, unforeseen circumstances, etc. G. Weather-related injuries, workman’s compensation. Three employees slipped and fell, other employees were injured shoveling snow at home. Most of our production employees sacrificed their weekends, and even spouses pitched in with callbacks, making files and delivering customers’ vehicles. Customer invoices and paperwork were taken home at night,

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and the load was spread among family and friends. We hired more people in the last three months than we have in the last three years to help offset the volume. We had to lease land in many of our markets to accommodate vehicles that were either totaled or waiting to be worked on. Parking spaces at all of our stores were allocated for customers so we could meet their needs in a convenient, efficient manner.

Walk-Ins » The additional “X factor” in this equation, observed by our CEO, Val Fichera, was all of the additional walk-in business that occurred, mostly due to the weather. From an administrative perspective, that’s a larger challenge as you don’t have an assignment waiting for you in your inbox. You have to make phone calls, assist the customer in determining whether to pursue a first-party or third-party claim, etc. It was very time-consuming,

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and time was what we needed during this period. But first impressions are lasting ones, and we needed to maintain that presence with our customers. Our business, despite the prolific volume of work, still needed to operate at the customer’s leisure and convenience.

Parts » I interviewed three parts managers from three major manufacturers to get a better grip on the challenges they faced in obtaining and delivering parts. They all agreed this past winter was the most challenging one in modern-day crash parts history – not even considering some new wrinkles in parts procurement. As John Hatchell, parts manager at Cherry Hill Nissan, put it, “This winter was just brutal.” One of the issues was snow delays with factory parts transportation from the manufacturers (delivered by union drivers). Often, at the slightest hint of

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BUSINESS » The Perfect Storm snow, transportation was either delayed and/or cancelled. Like us, the parts managers also had to deal with employees either showing up late or not at all due to the weather. According to Jeff Potteiger, parts manager for Main Line BMW Eurocars, FedEx and UPS aircraft were diverted and could not land in Philadelphia on several occasions. Also, parts from Germany were severely delayed either by bad weather grounding aircraft or storms in the Atlantic Ocean causing significant disruption out of all German ports. “Wheels this past winter became the hot commodity,” said Ray Gluch, parts manager at Bryner Chevrolet. “There were so many potholes from the ice expanding on the roadways that we couldn’t order and get wheels fast enough. I never saw anything like it before.” Gluch listed some challenges he and other parts managers faced:

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1. Snow delays. These were weekly. It’s so much harder to deal with many separate storms than just a few. Each one took up huge blocks of time. Three storms averaging two inches of accumulation is way worse than one storm with six inches. 2. Warehouse power outages. 3. Tractor trailers not delivering orders due to bad driving conditions. 4. PDC running out of crash parts due to the spike in business. 5. Shortage of wheels due to poor road conditions. 6. Parts on major backorder as inventory got consumed. When you factor in the economy and how most dealerships are keeping a lean inventory to keep expenses down, you can see how significant a one- or two-day delay became when trying to obtain parts and meet cycle times. Also consider manufacturers’ projections of PPCP (post-production

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crash parts), or parts budgeted for and manufactured strictly for crash replacement. Simply put, all businesses forecast sales according to need. But when the demand exceeds the supply that’s been calculated at a certain rate for years, you can imagine the delays it causes. Manufacturers live and die by projections.

Car Rental » The car rental industry is critical in giving MSOs like us the flexibility to repair customers’ vehicles and address the serious backlog that can occur when extreme, unforeseen weather hits. “You cannot fleet forecast, hire or plan for what we all experienced this winter,” said Christine Gallagher, RVP for Enterprise’s Eastern PA division. “What we had was a tough one, and this was a biggie.” Like everyone else, Enterprise had to make significant changes to meet

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BUSINESS » The Perfect Storm their customers’ needs. According to Gallagher, cars were brought in from all over the country and websites shut down, preventing retail customers from renting cars. Employees were hired and moved to high traffic areas to meet demand. Locations opened earlier, extended hours were offered and one-way rental traffic out of the area was shut down to avoid reducing the fleet. Car sales

were practically shut down from December until late March so they could commit to service first before any fleet planning. They did the best they could to stay connected to body shops and insurance companies to stay on top of their renters’ files and control the rental life. Despite these efforts, there were still situations where expectations fell short, so compensation had to be made.

Who’s Your Customer? » As a Six Sigma-trained lean facility, any time you get this type of extreme influx of work, one of the biggest challenges is customer service. Along with that is the elevated level of stress among employees working their fingers to the bone to appease your insurance partners and customers. Do you know who your customers Continued on pg. 98

UniCure ZAPPER 3006 The UniCure Zapper 3006 is a downdraft side-exhaust spraybooth that comes standard with a full paint and curing system, tri-fold product doors with large windows, a personnel door with a large window and (14) four-tube light fixtures. This booth is constructed of 3” Rockwool insulated double panels and is powder-coated white inside and out. UniCure can also custom build to meet your specific needs. With premium quality, superior features and more than 34 years in business, UniCure has the products and support that your business expects. For more information about our complete product line, visit www.spraybooths.com or call (800) 868-3033.

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EQUIPMENT

Clean

That Booth! Cleaning and maintaining your spraybooth is essential to avoiding costly redos and keeping a tidy shop.

By Jason Stahl ou know what happens when you don’t keep up with the dishes, right? You chow down with your family and lay four dirty dishes in the sink, reasoning, “It’s only a few, I’ll get to it later.” And then, of course, you don’t get to it later, one day turns into one week, and the pile of dishes looks like the Leaning Tower of Pisa. Whereas one person could have done the job of cleaning four dishes, now the whole family has to be enlisted in order to snuff out the mess in a reasonable amount of time. It’s the same principle with your spraybooth. If you don’t have a set, regular cleaning schedule, the grime will pile up and make the job even more undesirable and difficult when it finally comes time to do the task. Or you may just decide to forgo it even longer because you can’t stomach the amount of work it will take to get it back to new.

Y It’s a wet job, but powerwashing your spraybooths regularly can pay big dividends.

Standard Procedure » Angelo DiTullio knows how bad it can get. That’s why the assistant vice president and regional operations manager of Rocco’s Collision Centers has made cleaning the booths (and the rest of the shops) a standard operating procedure that occurs on a regular basis. “Like anything else, you have to make it part of

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EQUIPMENT » Clean That Booth your culture because, if you wait for the right moment, the right moment will never come,” says DiTullio. “You will always be busy and are always going to have cars that need to be painted. You have to basically make it a law and say, ‘This is how we operate.’” So what’s the law at Rocco’s? The booths get cleaned the first Monday of every month. That means they get powerwashed, have their filters changed and get remasked for overspray. On a weekly basis, painters change the floor filters, clean and sweep out the booths, clean the paint rooms and change the paper on the mixing tables. And then there is follow-up. “Every store manager has to send a text to [Mark Cipparone, Rocco’s CEO] and myself letting us know the booths have been cleaned so

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we’re all on the same page,” DiTullio says. “Sometimes it gets crazy busy and it’s an easy excuse to say you didn’t get to it. But that’s why we set it up this way so everybody keeps on that mission and always takes care of it.” Cleaning the booths isn’t assigned to specific people; at Rocco’s, cleaning is looked at as a team effort. If there’s only one painter at a shop, he will be responsible for his booth and paint room. In the shops where there

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Some shops hire an outside company to do the heavy cleaning and maintenance of the booth.

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EQUIPMENT » Clean That Booth! are multiple painters, they will share the duty. “It’s part of their job,” says DiTullio. “It’s set in stone for the first Monday of every month, so everyone knows what’s going to happen that day.” Even though it’s part of the cul-

ture now, DiTullio still sets up the regular booth cleaning as an automatic calendar event in the company’s email system as a reminder to managers. “This is because we do get busy, and sometimes you might forget,” he says. “If Friday was a slow day, they

might have done it then, but they know that as long as it gets done by that first Monday, they’re good.” Although DiTullio has no physical documentation that keeping a sparkly clean booth has resulted in less redos and comebacks, logic says less dirt and grime leads to a more dirtfree paint job. “We absolutely buff less, run into less problems and have less redos by keeping on top of that maintenance,” he says. But redos aside, another reason it’s critical to keep the booths clean at Rocco’s is because every customer gets a tour of the shop. “Having a booth that you’re painting a lot of work in, you have overspray that gets on the walls and filters and looks crummy and becomes embarrassing to the point where you don’t want to bring someone in the booth to show it to them,” DiTullio says. So how does the process go? They take out all the filters and don’t powerwash any higher than the walls, so the ceiling filters can stay. They’ll pull the exhaust filters out of the floor and pull the grates out and set them somewhere to get powerwashed as well. The cleaners wear boots and gloves and try not to get wet. Each booth takes two to twoand-a-half hours to clean. But it’s not just the booths that get cleaned. Every Friday, the rest of the shops get tidied up, too. Around 3:30 or 4 p.m., crews throw away all the parts they don’t need, sweep and powerwash the entire shop from the walls down. “As busy as we are, parts and boxes can build up very quickly, and if you don’t take that time to clean the store every week, it shows,” says DiTullio.

In and Out » The painters at Valley Motor Center Autobody in Van Nuys, Calif., are expected to tidy up their booths every week, according to General Manager Mike Circle 48 for Reader Service

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EQUIPMENT » Clean That Booth!

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Towney. This involves sweeping, washing down the walls, wiping down hoses and any shelves that might collect dust, and cleaning any overspray off the glass. Floor filters are also changed out. Heavy-duty maintenance, however, is left to an outside company that performs it on a monthly basis. “They do full-service as far as building booths, relocating booths, permitting booths as well as servicing and maintaining them,” says Towney. “They go through and deep clean everything, including the vents and fans, and replace all the filters.” The idea, Towney says, is to prevent a problem before it happens. With four booths to maintain, it’s not cheap, he admits, but he feels it’s worth it. “If we tried to do it ourselves, there are things we would miss,” he says. The overall goal of the weekly cleanings and monthly maintenance is to achieve consistent airflow around the car, Towney says. “If [the booth] is struggling to work and you have more overspray floating in the air for a longer period of time, you have more opportunity for lint to attach itself to debris and land on the car. Cars don’t necessarily straddle the vents or grates at the bottom equally. You need the best airflow from top to bottom to push out all overspray immediately. So if your filters are pretty clogged, it slows that down and you have the potential for more impurities and thus you will have to buff more on the back end.” While Towney admits he doesn’t have a standard procedure to verify the cleaning has been done, he trusts it has because of what’s at stake. “I will periodically ask the painters if it has been done, but I’m not that rigid on that because it’s in their best interest to keep the booths clean because they will spend less time correcting problems, and they know that.” BSB

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BUSINESS

UP the Profits RINGING Add-on businesses can be just the thing to give a lift to a sagging bottom line. By Kristen Hampshire

dd-on businesses give body shops opportunities to ring in sales rather than turning requests for sprayed-on bedliners, glass work, detailing and aluminum repairs to other outlets. But are you ready to expand your core business? And what’s the best service to add to your menu?

Truck Mania » With increased truck production now that the economy is loosening up, John Jamroz of Ultimate Linings in Houston, Texas, says the last 18 months have provided a solid 54

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market for sprayed-on bedliners. “If you look at fleet sales alone, they have doubled from three years ago,” Jamroz says. “You’ve got more trucks on the road, but a lot of the mom-andpop shops that did lift kits, bumpers, grills and everything else went out of business when sales were down at the dealerships, and now you’ve got the bigger shops left doing spray-on bedliners and [other add-ons].” That means there are fewer places to get a sprayed-on bedliner today, Jamroz says. And now, more trucks leaving the

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BUSINESS » Profit Centers

Increased exposure to sprayed-on bedliners is causing more vehicle owners to ask for them.

factory have bedliners, opening up repair work for body shops that are equipped to manage these jobs. Jamroz says 40 percent of Dodge Rams leaving the factory have bedliners. Increased exposure to bedliners also causes drivers to ask for the feature. Body shops that do sprayed-on bedliners can capture

that business from dealerships if a partnership exists. “You’ve got increased truck production, pent-up demand and increased exposure at the dealershiplevel – and lower operating costs,” Jamroz says of the perfect ingredients for a successful add-on business. There are two sides to the bedliner

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business: installation and warranty work. “We offer two methods for body shops to maintain that profitability in-house – and often, it’s a [bedliner] repair,” Jamroz says. With more vehicles, owners are spending today on add-ons, in general, making additional profit centers an investment to consider for body shops. “We’re finally back to a point where people are investing in their vehicles,” says Dana Mitchell of Scorpion Coatings in Cloverdale, Ind.

Breaking In » Is a bedliner business right for your shop? And, beyond protective coatings, what about other add-ons such as glass work or advancing current repair capabilities by investing in tools to do aluminum collision repair? Some add-ons are admittedly outside of a body shop’s core business. A question to ask is: “Is it worth it –

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BUSINESS » Profit Centers is there enough business there?” says Bob Olszak, USC product manager at Quest Automotive Products in Massillon, Ohio. Do you have the space to devote to a sprayed-on bedliner operation? (A devoted, screened-in area is necessary to avoid overspray.) Do you have the resources to train technicians and market the service? And how will the supplier/dealer assist with these tasks? What’s the market in your area? (Is the guy next door doing the same exact thing?) And is there opportunity for feeder business? Will dealerships and insurance companies send vehicles to your door if you offer the service? Sprayed-on bedliners is one business option – but so is detailing, headlight repair and other side services that take up less space in a body shop that wants to test additional services before investing in new equipment. Ease of use/operation is a key consideration as well. Olszak explains how Quest’s epoxy system offers more adhesion, corrosion protection and chemical resistance than other urethane options. “Basically, these products are easier to prepare and apply, and while slightly slower to cure, there isn’t a huge [time] difference and it’s a simple, easy system to invest in if a shop wants to do bedliners,” he says. Mitchell says body shops that want to test the waters can enter the bedliner business with lowpressure systems/kits and choose to advance their systems as they do more volume. “It makes sense to crawl before you walk, and walk before you run,” he says. The body shop start-up investment can be as low as $850 if you count an applicator gun and materials – less, in some cases, for kits. With materials costs running about $150 for high-end products, and an average national bedliner installation price of about $550, the profit potential is certainly there, Mitchell points out. Circle 58 for Reader Service

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Mitchell says the material cost for low-pressure systems is 20 to 30 percent higher (for Scorpion Coatings) than high-pressure materials. “But, there is no equipment investment,” he says. “Your spray guns will be $200 in the worst case.” A shop that does two or three trucks per month will be well served by this easy entry approach. But once a shop starts spraying five to 10 vehicles a week, the volume justifies an investment in high-pressure equipment, Mitchell says. “You have to ensure that you have that business long-term – if it’s a flash in the pan for a dealership you’re spraying for and you lose that business in six months, you’re stuck with a $30,000 equipment investment,” he relates. For long-term volume, and an opportunity to continue growing the sprayed-on bedliner business, a body

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BUSINESS » Profit Centers shop can do the math and make higher profits by getting into a highpressure system. Some good news: The cost to get a sprayed-on bedliner business going is much less today, Jamroz says. Highpressure equipment cost is less now through Ultimate Linings – about $16,500 compared to up to $28,000 – now that more machines are on the market for body shops to choose from, Jamroz says. Not sure whether to start with low- or high-pressure application? Jamroz crunches some numbers. For a truck bed requiring six cartridges of product (and that’s a lot, he says) at $25/cartridge, materials for a single bed cost about $150. Switching over to a high-pressure system, materials cost is approximately cut in half, but the application equipment costs more. “But if you’re doing 20 trucks per month and saving $75

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5 QUESTIONS

to Ask Before Adding On a New Service 1. Is there enough business available to justify the investment? 2. Do you have the necessary space? 3. Do you have the resources to train technicians and market the service? 4. How will the supplier/dealer assist with training and marketing? 5. Is there an opportunity for feeder business? (Dealers and insurers sending vehicles to you).

per truck on materials costs, that’s $1,500 per month you’re saving, so in 11 months, you’ve paid for the equipment,” Jamroz says. Volume justifies the investment – and cross-marketing can pump that volume up. Mitchell says shops can operate sustainable add-on businesses by partnering with dealerships and other suppliers that do not have a body shop on site. “They will get requests for bedliners and drive that traffic to you,” he says. “Work with

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the parts and sales departments, because they will push that [add-on] for you. If a salesperson feels like he can close a deal on a truck by offering a bedliner, he is going to promote that.” Another strategy is to coordinate with local accessories retailers. “Have them drive their bedliner business to you, and create a nice bundle to drive the traffic back and forth,” Mitchell suggests, relating that body shops are generally not involved in bolt-on accessories and can recipro-

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BUSINESS » Profit Centers cate referral business by sending requests for these products to retail partners in their region. Mitchell adds that shops should take advantage of social media and post specifically labeled photos (tagging the truck description, liner and material) of bedliner projects on Facebook and other outlets, which will get them recognized as local installers.

Enhancing the Core Business » Add-on businesses such as undercoating and restoration kits can be simple and take up little space. “You can use a single bay, the turns are quick and the revenues are high,” Mitchell says. He says many shops got away from this work in the last five years. “There wasn’t demand for it, and they focused on panel repair and paint.” Undercoating and restoration costs less from a time and materials perspective, and can generate as much revenue and gross profit as full-on panel repair service, Mitchell says. “Headlight restoration, window film and tinting are other options we offer that are a huge push for body shops right now,” Mitchell says, reiterating increased driver spending on vehicle add-ons. “Folks are spending more – we see that trending in the market here.” Meanwhile, shops must also seriously consider their core business and how it will evolve with the increase in aluminum repair that will hit the market after fall when the No. 1-selling vehicle in the country, the Ford F-150, debuts. “It’s a paradigm shift in auto body repair,” says Erik Spitznagel, CEO of Dent Fix Equipment, Gardena, Calif. Dent Fix offers more than 50 different pieces of body shop-specific equipment for technicians, including those for aluminum repair. By 2025, 18 percent of vehicles on the road will be aluminum-paneled. “It doesn’t sound like a lot, but if Ford itself puts out 736,000 pickups per year, that’s a lot of repair,” Spitznagel points out. A changeover in equipment could Circle 62 for Reader Service

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cost a shop $30,000 to $50,000, depending on the preparation required. But Spitznagel says this expanding field of repair will differentiate body shops from competitors – and how long can a shop ignore a significant stream of business? He compares the future influx of aluminum repair to a tidal wave. “It’s an aluminum wall coming toward us,” he says. Some shops will get the equipment to make aluminum repairs; those that dig their heads in the sand could get swept away by the wave of aluminum repair. “For those who are forward-thinking and preparing their shop, it will allow them to direct the business for aluminum repair to their shops,” Spitznagel says, adding that as aluminum becomes more standardized, there will be demands that body shops repair and not just replace the panels. Spitznagel acknowledges the range of add-on businesses that shops can choose from to increase revenues, from detailing to car rentals. But Dent Fix focuses on collision repair. “That is the body shop’s business, so they need to focus on that and make sure they’re the best that they can be in the field,” he says.

Where Do You Want to Be? » Think about this: Where do you want your body shop to be in five years – and in 10 years? Set a goal. And be willing to take calculated risks in the name of driving more profit to the business. “Analyze how much you can, and are willing, to invest to see if your facility can handle growth, then start looking for areas to explore,” Spitznagel says, relating to his own family’s business, founded in 1978 by his father. Dent Fix just moved into its third facility – the company started out with one piece of equipment, and now it offers 50plus. Spitznagel offers this advice: “You have to allow yourself the opportunity to grow.” BSB Kristen Hampshire is a freelance writer based in Cleveland, Ohio.

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SHOW PREVIEW

The 2014 NACE/CARS Expo & Conference is taking place July 30-Aug. 2, and what better place to have it than Detroit? By Jason Stahl and Gina Kuzmick ook too closely and you may not recognize NACE this year. New city (Detroit). New time (July 30-Aug. 2). New organizer (Stone Fort Group). You might say the show has reinvented itself. And how appropriate as the inventor of the automobile, Henry Ford, was born there. And what about all the other collision events going on the same week? The Collision Industry Conference. The I-CAR Annual Conference. The Collision Repair Education Foundation Golf Fundraiser. The Society of Collision Repair Specialists Open Board Meeting. The National Auto Body Council Open Board Meeting. Just to name a few. This means it’s going to be the biggest week in the collision repair industry in 2014…which means you absolutely have to be there!

Education » The pounding drumbeat in the industry lately has been “training-training-training.” And more training! With new technologies being introduced into vehicles every year, shops can no longer rely on the knowledge and experience they built up for the last 20 years. 64

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There’s no place better to get up-to-speed on today’s vehicles than NACE. Starting Wednesday, July 30, NACE will be offering classes on both technical and management topics. Some of the technical topics include: 䡲 Chief Automotive Technologies, Aluminum 2014 䡲 Automotive Wheel Alignment Theory and Practical Application: Relations with Electronic Stability Control & Dynamic Driver Assist Programs 䡲 Rivet Bonding and Weld Bonding Becoming Mainstream – Are You Ready? 䡲 Steering and Suspension Damage Analysis 䡲 Plastic welding and bumper repair Some of the management topics include: 䡲 Situational Leadership: Understanding People 䡲 QuickBooks for the Collision Repair Industry, The Right Way 䡲 Creating a Culture Where New Hires Succeed 䡲 Dynamic Marketing Through Social Media There will also be aluminum-focused training and presentations to collision instructors and industry

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SHOW PREVIEW » NACE 2014

Places to Go Henry Ford Museum A Detroit staple established by Henry Ford himself, the museum highlights the finest and most important pieces of American history and innovation. From early airplane models to the first Macintosh computer to the 15 millionth Model T, milestone inventions abound. Be sure to check out the new exhibit titled, “With Liberty & Justice for All,” which examines some of the most profound moments in American history. It includes items like the chair in which President Lincoln was assassinated and the bus in which Rosa Parks stood up for civil rights. 20900 Oakwood Blvd., Dearborn (313) 982-6001 www.thehenryford.org

Concours D’Elegance Now in its 35th year, the Concours d’Elegance continues its longstanding tradition of showcasing majestic vintage automobiles and bikes. View pre- and post-war classes of classic vehicles, participate in auctions and attend seminars on vehicle restoration. July 25-27 The Inn at St. John’s 44045 Five Mile Road, Plymouth (248) 643-8645 www.concoursusa.org

professionals thanks to a $60,000 grant from the Alcoa Foundation. Other manufacturers will also offer presentations at NACE on aluminum repair, including but not limited to Ford Motor Co., Audi, Pro Spot, Car-O-Liner, Chief and 3M. Ford will have a class that will provide 2015 F-150 aluminum repair information and details on its National Body Shop Program. There will be at least nine classes covering aluminum, including sessions on aluminum welding and repair and a class explaining the differences between aluminum and steel.

Collision Repair Executive Forum » The Collision Repair Executive Forum (CRES), formerly known as the MSO Symposium, has been a hit ever since it debuted in 2011. Whereas in previous years it was only open to multi-shop operators, the all-new CRES will cater to a broader group of collision repairers. 66

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Motown Historical Museum This attraction offers a glimpse into the golden age of soul through historical music exhibits and artifacts. Step foot into Studio A, where legends such as The Supremes and the Temptations recorded hit songs, then learn all about such artists as the Jackson 5, Stevie Wonder and the Four Tops. 2648 W. Grand Blvd., Detroit (313) 875-2264 www.motownmuseum.org

Ford Rouge Factory Tour This five-part, self-guided experience incorporates informative videos and walking tours to educate visitors on the history and process of Ford manufacturing. Tour the assembly plant for an up-close view of the new F-150 manufacturing process, then hop in one to see what it’s like for yourself! 20900 Oakwood Blvd., Dearborn (313) 982-6001 www.thehenryford.org

This year’s event includes key changes in content, including a focus on management, operations and participation from insurance company executives presenting leading information on industry trends. CRES is designed for collision repair multi-shop operators, as well as operators looking for highgrowth strategies, mergers and acquisitions. The symposium is scheduled for Friday, Aug. 1 from 8 a.m. to 4:30 p.m.

Canadian Collision Industry Forum » The Canadian Collision Industry Forum (CCIF) will host a special event on Thursday, July 31 that will feature industry speakers, panel discussions and a cocktail reception. Keynote speaker Vincent Romans of The Romans Group LLC will provide an overview of the state of both the Canadian and U.S. collision and property/

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SHOW PREVIEW » NACE 2014 casualty industries. He will discuss the acceleration of mergers and acquisitions in the collision repair industry, and address what consolidation means for the industry at large and how it impacts each collision shop’s business. The CCIF conference will take place at the COBO Center from 1-4 p.m. and will be followed by a cocktail reception.

OEM Technology & Innovation Expo » A new addition is the inaugural OEM Technology & Innovation Expo scheduled for Friday, Aug. 1. It will include panel discussions with OEM experts as well

as product and application demonstrations. In addition, connected vehicles are expected to be on-site to provide attendees with a hands-on experience. “The OEM Technology & Innovation Expo at NACE/CARS will provide attendees with access to advanced technologies currently being deployed by automakers,” said Matthew Godlewski, vice president of the Alliance of Automobile Manufacturers. “A host of technologies will be on display, and OEM experts in the field will be on hand, including a panel discussion regarding telematics and future innovation in diagnostics and repair.” BSB

Dining Motor City Brewing Works Michael Symon’s Roast 11128 Washington Blvd. www.roastdetroit.com Renowned meat aficionado Michael Symon’s Motown restaurant is a carnivore’s paradise. From wild boar to duck to the “beast of the day,” you’ll have a wide assortment of mouthwatering meats to choose from. If you’re not completely stuffed after dining, stick around for a hefty dessert of porter beer ice cream with chocolate covered pretzels.

470 W. Canfield St. www.motorcitybeer.com Enjoy flavorful brick oven pizza and a hearty selection of craft beer atop this microbrewery’s rooftop patio or in its cozy taproom. With such names as Old Gear Oil and Ghettoblaster, the beverage menu is a piece of Detroit history in itself.

Astoria Pastry Shop 541 Monroe St. www.astoriapastryshop.com Satiate that sweet tooth with nearly any dessert you can dream up. From posh European treats like éclairs and crème brulee to traditional favorites such as brownies and danishes, this shop is guaranteed to have something for everyone. Bonus: It’s open late to satisfy your late-night cravings.

American Coney Island/Lafayette Coney Island 114 and 118 W. Lafayette Blvd. www.americanconeyisland.com Detroit is famous for its coneys, and these two rival shops, located right next to each other, make some mean dogs. Get a coney from both, then make your assessment as to whose is better.

July 2014 | BodyShop Business

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»| Industry Update |«

National Average Age of Vehicles on the Road Remains Steady at 11.4 Years he combined average age of all light vehicles on the road in the U.S. remained steady at 11.4 years, based on a snapshot of vehicles in operation taken Jan. 1 of this year, according to IHS Automotive, which incorporated Polk into its business last year. Total light vehicles in operation (VIO) in the U.S. also reached a record

level of more than 252,700,000 – an increase of more than 3.7 million (1.5 percent) since last year, said the IHS Automotive analysis from July 2013. In addition, new vehicle registrations outpaced scrappage by more than 24 percent for the first time in a decade, according to the analysis. The average age is in line with the trend shift first seen in 2013, in

July 2014 | BodyShop Business

which the combined fleet of cars and light trucks on the road is older than ever. New analysis, however, indicates the average age of light trucks has increased in the past year to the same age as passenger cars, both at 11.4 years. This is the first time this has happened since 1995, when the data was first reported. IHS forecasts that average age of vehicles will

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remain at 11.4 years through 2015, then rise to 11.5 years by 2017 and 11.7 years by 2019. This rate of growth is slowing compared to the last five years due to the increase in new vehicle sales. The number of vehicles scrapped in 2013 was significantly fewer than in previous years, with just over 11.5 million vehicles scrapped during the 12month timeframe analyzed by IHS Automotive. In comparison, a record high of more than 14 million vehicles were scrapped in 2012 – this while VIO is up 1.5 percent, a rate the auto industry hasn’t seen in the U.S. since 2004-2005.

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»| Industry Update |« Study Shows Honda Collision Warning System Reduces Insurance Claims A combined forward collision and lane departure warning system available on the Honda Accord is reducing insurance claims, a new Highway Loss Data Institute (HLDI) analysis shows. The results are even better than expected based on previous studies of such technology on luxury vehicles, the HLDI stated. In the first real-world study of a crash avoidance system on a highvolume, non-luxury vehicle, Honda’s system was found to reduce insurance claims for damage to other vehicles by 14 percent. It cut claims for injuries to occupants of the equipped vehicles by 27 percent and claims

for injuries to other road users by 40 percent. “This was our first opportunity to study advanced crash avoidance technology on a high-volume vehicle, and the results are impressive,” said HLDI Vice President Matt Moore. “This is a warning system only, but the claim frequency reductions are similar to what we saw earlier for systems with automatic braking.” Previous analyses of forward collision warning without autobrake showed more modest claim reductions. Lane departure warning was associated with increases in claims in earlier studies, though none that were statistically significant, according to the HLDI.

Liberty Mutual CEO Says Driverless Cars Could Put Dent in Auto Insurance Market A report from the Boston Globe on Google’s plan to manufacture 100 cars without steering wheels and brakes and start testing them out quoted Liberty Mutual CEO David Long as saying, “[Driverless cars] are coming, and it will have a significant impact. Thank God in a shrinking market, we don’t just insure cars, we insure property.” When asked about whether they feel driverless cars may hurt the auto insurance business, some collision repairers have replied, “The insurers will figure out some way to make it mandatory to keep your same level of insurance.” But Long’s comments at the Greater Boston Chamber of Commerce breakfast seem to indicate real worry on the other side. Long said in the Globe story that more than 60 percent of consumers trust driverless technology. But he personally still prefers to use a steering wheel and drive a car. Circle 72 for Reader Service

July 2014 | BodyShop Business

Product

Spotlight INTER-MIX™ Automotive Seam Sealers INTER-MIX™ seam sealers are 100% solids, two-component epoxy systems that are quick to set up and cure. No waiting for solvents to escape or for moisture cure reactions to occur. INTER-MIX™ epoxy seam sealers help you move repairs in and out of your shop faster – saving you time, space and money. 8412

INTER-MIX™ 5 Semi-Flexible, 5-Minute Working Time Used for sealing vertical & horizontal seams and joints. Great for door skin beads! Edges round out to duplicate OEM seams! Will not retain brush marks.

8411

INTER-MIX™ 15 Semi-Flexible, 15-Minute Working Time Used for sealing vertical & horizontal seams and joints. Great for door skin beads! Edges round out to duplicate OEM seams! Will not retain brush marks.

8405

INTER-MIX™ 10 “Thick-Set,” Semi-Flexible, 10-Minute Working Time A bare metal seam sealer used for sealing vertical & horizontal seams and joints. Great for Push and Pull, Notched Spreader and Zig-Zag beads, also retains brush marks!

8413

INTER-MIX™ 15 Extremely Flexible, 15-Minute Working Time Flexible! Used for sealing vertical & horizontal seams and joints where extreme flexing occurs. Great for Push and Pull, Notched Spreader and Zig-Zag beads, also retains brush marks!

8410

INTER-MIX™ 30 Control-Flow, Self Leveling, Semi-Flexible, 30-Minute Working Time Used for sealing roof seams, drip rails and other horizontal seams and joints. Flows to a smooth finish.

International Epoxies & Sealers is a U.S. manufacturer of high quality adhesives, sealants, foams, coatings and other specialty products. Since 1985, our objective has always been to provide our customers with the highest quality products and services at the fairest prices. We have Salesmen and Distributors located throughout the U.S. to better serve your needs. Let us help you grow your business. Visit www.useies.com or call 800-451-7206.

Distributor and Salesmen inquiries welcome. NACE Booth #25008 SEMA Booth #11086 Circle 73 for Reader Service

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»| Industry Update |«

Legislative ASA Members Meet with Congress to Discuss Most Favored Nation Clause utomotive Service Association (ASA) leaders traveled to Capitol Hill to meet with members of Congress to discuss the negative effects of the Most Favored Nation (MFN) clause. ASA noted the problems MFN clauses can create for shops, consumers and insurers. “We were encouraged by the interest in Washington, D.C., and look forward to continued conversations with our representatives,” said Dan Risley, ASA president and executive director. “Most Favored Nation clauses are harmful to consumers, shops and some insurers. Michigan has recognized the damage these clauses can do in a marketplace and acted accordingly with regard to health insurance. This same reasoning should apply to vehicle repair, and property and casualty insurance. This is the single most important issue we have in the collision repair industry today.”

July 2014 | BodyShop Business

Louisiana Legislature Enacts Bill to Curb Airbag Fraud he Louisiana legislature has completed action on S.B. 32, which will establish stricter definitions and penalties for airbag fraud. Act No. 105 will take effect in August 2014 and reads: 䡲 No person shall knowingly install or reinstall in any motor vehicle a counterfeit or nonfunctional airbag or any other object intended to fulfill the function of an airbag that does not meet the definition of “airbag” set forth in this bill. 䡲 No person shall knowingly manufacture, import, sell or offer for sale a counterfeit or nonfunctional airbag. 䡲 No person shall knowingly sell, install or reinstall a device in a motor vehicle that causes the diagnostic system of the vehicle to indicate inaccurately that the vehicle is equipped with a functional airbag. Along with Louisiana, the New York legislature is considering Assembly Bill 9730, which affects the sale and installation of recycled airbags. It also proposes penalties for those who install, reinstall or offer for sale any “inflatable occupant restraint system” that does not meet federal safety requirements.

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Product

Spotlight VORTEX® Premium Waterborne Refinish System ORTEX® is an easy-to-apply, fast-drying waterborne basecoat system that behaves like solventborne technology. VORTEX® provides excellent color match to today’s OEM colors while meeting the strictest VOC limits in North America. VORTEX® waterborne basecoat is especially suited for high-volume collision centers specializing in high-quality repair and refinishing that have to meet strict VOC regulations.

VORTEX® Premium Waterborne Refinish System Features

䡲 System: Water 䡲 Warranty: Lifetime 䡲 Color Match Quality: Excellent 䡲 Intermix/Factory Package: Intermix 䡲 Use: Spot Repair / Overall Refinishes 䡲 Color Resources: FormulaExpress®, Prospector®, iFEX®, Color Book 䡲 Color Alternative: Many Alternates 䡲 Hide: Excellent 䡲 Cycle time: 50-60 Minutes 䡲 VOC: 3.5

Martin Senour® Automotive Finishes provides products for various automotive, fleet and manufacturing refinishing segments. Martin Senour® is the exclusive supplier of automotive refinish products to NAPA. Together, they provide the single source for all your automotive needs. For more information specific to Martin Senour® paint products, visit

www.martinsenour-autopaint.com or call 1-800-526-6704. Circle 75 for Reader Service

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»| Industry Update |«

Consolidation The Boyd Group Acquires 15-Store Collex Collision Operation Collex Collision Experts, with 15 locations throughout Michigan and Florida, has been acquired by The Boyd Group. “We couldn’t be happier today. This is a big win for all the team members at Collex Collision Experts along with our customers,” said Nick Booras, vice president of sales and marketing for Collex Collision Experts. “You will

continue to see the same friendly local faces that you always have. “Paramount in this deal was the fact that the values of The Boyd Group matched those of Collex Collision Experts. Making sure all of our customers are driving safe, reliable vehicles has been priority one for both organizations and will continue to be.”

July 2014 | BodyShop Business

The Boyd Group is the largest operator of nonfranchised collision centers in North America. It operates as Gerber Collision & Glass in the U.S. “You don’t get to be No. 1 in North America without providing excellent service and putting the customer first,” said Booras. “We’re proud to now be part of that same team.”

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Nu-Look Collision Opens 12th Location Nu-Look Collision Centers, a Rochester, N.Y.-based MSO, has opened its 12th location in the city of LeRoy. This news arrives just weeks after announcing the acquisition of the 11th Nu-Look store on Lyell Avenue in the town of Gates. “We owe our growth and success to our hard-working employees and to our loyal customers,” said Nu-Look President Todd Zigrossi. “Without the support of the community, and their trust in our services, we wouldn’t be going strong after 33 years. We’re honored to be the largest locally-owned collision company in western New York.”

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»| Industry Update |«

Fix Auto Enters Alaska Market ix Auto USA has entered the Alaska market with five locations in the state, bringing the total number of franchises to 59. “We’re ecstatic to join this elite and exclusive brand of high-caliber

operators as we adapt to shifting market dynamics,” said Tony Stanley, the Fix Auto Alaska franchise group (formerly Driven Auto Body). “The benefits of being part of Fix Auto are many. We’re looking forward to seeing the beneficial

impact the organization’s buying programs, operational best practices, marketing and technology will have on our business.” The five stores making the transition to the Fix Auto brand are: 䡲 Driven Auto Body – Gambell becomes Fix Auto Gambell 䡲 Driven Auto Body – Soldotna becomes Fix Auto Soldotna 䡲 Driven Auto Body – Spenard becomes Fix Auto Lake Hood 䡲 Driven Auto Body – Valley becomes Fix Auto Valley 䡲 Driven Auto Body – Fairbanks becomes Fix Auto Fairbanks “The team at Driven Auto Body has a proven track record as excellent operators, and Tony has certainly demonstrated, time and again, a vision that allows his enterprise to stay ahead of the curve,” said Fix Auto President and COO Paul Gange. “The Driven Auto Body team is a welcome addition to the already burgeoning number of highlevel facilities that are helping to strengthen our brand throughout the Western U.S.”

Service King Finalizes Sterling Collision Centers Acquisition Service King Collision Repair Centers announced that it has finalized the acquisition of Sterling Collision Centers. Service King now operates 175 locations across 20 states. Service King said the acquisition “supports our growth strategy and further strengthens our position as the premier provider of high-quality collision repair backed with exceptional customer service.” “Acquiring a company like Sterling Collision Centers is about more than expanding our network with bricks and mortar,” said Chris Abraham, CEO of Service King. “The strength of our organization lies within our people, and we are Continued on pg. 80 Circle 78 for Reader Service

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»| Industry Update |« Continued from pg. 78 extremely excited to welcome the very talented Sterling team to the Service King family. Service King has offered consumers a superior collision repair experience for more than 38 years, and we are well positioned to grow that legacy with what I believe is the most capable and experienced team in the industry.” Sterling’s 62 locations will begin operating as Service King immediately, and the rebranding of Sterling stores across the country began on June 3, 2014. Added Jeff McFadden, president of Service King, “Service King has built a

strong reputation in the communities where we do business. We recognize that collision repair is not just about the car, but it’s about the care and the lives we touch every day. This acquisition allows us to expand our footprint

and offer more consumers an unparalleled, personal repair experience.” Service King now employs more than 3,800 technicians and support team members and offers collision repair services in the following states: Ari-

zona, Arkansas, California, Colorado, Georgia, Florida, Illinois, Maryland, Michigan, Mississippi, Nevada, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Virginia.

H&V Collision to Open New Location in Hudson Valley, N.Y. H&V Collision Center will be expanding into the Hudson Valley region, adding a fifth location in the Kingston market and continuing the expansion of the familyowned collision repair business. Located in Ulster County, the new location will be H&V Collision Center’s first outside the Capital Region, and fourth new location in just over five years. “We are very excited to be expanding H&V Collision Center into the historic Hudson Valley, and growing into

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a new region and market,” said Vartan Jerian Jr., vice president of H&V. “H&V Collision Center is proud to have formed many long-lasting relationships with customers in our home area, and look forward to serving new friends in the Ulster County area. The Ulster County/Kingston area is a growing, busy market, and it made great sense for H&V to set up shop here and begin our work in the Hudson Valley.”

Product

Spotlight Measure Vehicles in Real-Time, Even in Out-of-Level Conditions, with

Chief LaserLock™ Live Mapping™ System he LaserLock™ Live Mapping™ system from Chief Automotive Technologies is the next evolution in computerized collision repair measuring. It includes a new laser scanner with out-of-level measuring capabilities; 45 targets and a wide range of attachments; a lockable, portable workstation equipped with dual flatscreen monitors, computer and color printer; and exclusive Chief software. LaserLock measures up to 45 individual points on a vehicle simultaneously in real time – more than any other system – so collision repair technicians can monitor dimensional changes as they occur during pulling. As a result, there is no need to recalibrate after every pull and the risk of putting additional damage into a vehicle is reduced. The lightweight, durable new LaserLock scanner features easy-to-reach handles and a compact profile that maximizes the laser’s line of sight. As a result, LaserLock can map an entire vehicle at once, making it possible to repair vehicles with diamond or twist damage, as well as frames that have both front and rear damage. LaserLock’s state-of-the-art design allows for vehicles to be measured even when they are not level, so set-up time is reduced. This also makes LaserLock a natural choice for the estimating bay, where it can be used with a simple two-post lift to measure every vehicle, resulting in better scheduling, more efficient repair plans, improved cycle times and happier customers. Moving LaserLock from the estimating bay to the frame rack is easy using the system’s portable work-

station. This custom steel cabinet sits on casters, so it can glide around the shop as needed. One of LaserLock’s two flat-screen monitors is dedicated to the live mapping system, while the secondary Web-enabled monitor can be used to run an estimating system or to access OEM repair procedures. With LaserLock, technicians never need to leave the bay during the repair process, leading to significantly greater productivity. The lockable workstation has a secure body scanner drawer, as well as secure storage for the computer, monitors and printer. Recognizing that modern vehicles are increasingly complex to repair, LaserLock includes a step-by-step tutorial program to help technicians make higher quality repairs quickly, accurately and profitably. The system includes on-screen photos of recommended targets and attachments, as well as where they should be placed. Chief also includes free interactive live support. LaserLock enables shops to print full-color maps of all the collision damage on a vehicle as part of the estimating process, as well as a final inspection report showing that the vehicle has been returned to OEM specifications. Like all Chief measuring systems, LaserLock uses the company’s exclusive vehicle spec data. Chief personnel measure every vehicle themselves with the frame anchored and the suspension unloaded in order to provide technicians with “real world” accuracy unmatched by any other source. Chief specs cover more vehicles than anyone else’s.

For more information about the Chief Automotive Technologies LaserLock live mapping system, contact your local Chief distributor, visit www.chiefautomotive.com or call (800) 445-9262.

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»| Industry Update |« Caliber Collision Acquires Five Locations in North Carolina Caliber Collision Centers announced that it has acquired Haddock Collision Centers in North Carolina. The company has five stores in the Raleigh, N.C., market and has operated for more than 40 years. This acquisition brings the total number of Caliber stores to 177 nationwide. “Our acquisition of Haddock Collision Centers in North Carolina represents our first of many acquisitions to come in the eastern U.S.,” said Steve Grimshaw, CEO of Caliber. “I am very excited to have Todd

McGowan and the entire Haddock Collision organization join forces with Caliber. The Haddock Collision facilities and management team are perfectly aligned with our purpose, vision and mission by consistently

delivering unparalleled customer satisfaction and industry-leading operational consistency in the Raleigh, N.C., area for over 40 years.” Added Todd McGowan, owner of Haddock Collision, “We

created a place where people really do want to work and are pleased that Caliber Collision will offer our employees a bright future, while serving the community in the fashion they have come to expect.”

Car West Auto Body Opens New Location in Dublin, Calif. Car West Auto Body celebrated the opening of its new 26,500-square-foot Dublin, Calif., location on June 17 with 350-plus guests. The new location is the sixth for the Bay Area-based business. Located directly across the street from their current location, Car West Auto Body will mark the entrance to the Dublin Auto Mall. Family, friends, business partners gathered in support of Car West’s grand opening celebration and ribbon cutting ceremony. Vice Mayor Don Biddle and the City of Dublin’s Hazel Wetherford were also present in support of the celebration. Guests enjoyed live jazz music, food, libations and raffles prizes.

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»| Industry Update |«

Corporate Pro Spot Names Art Ewing Canadian Sales & Marketing Director

Pro Spot International announced the appointment of Art Ewing as sales and marketing director – Canada. Ewing’s main focus will

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be to support and further develop Pro Spot’s existing distribution in Canada. Ewing, a resident of Vancouver, has been involved in selling and marketing Pro Spot products for several years in his past role as welding products marketing manager with Lordco Auto Parts. He has also Art Ewing held North American marketing and sales management roles with a major industrial gases manufacturer. Ewing is a welding engineering technologist graduate from the Southern Alberta Institute of Technology, holds a special certificate in finance from the British Columbia Institute of Technology, and is a graduate of Vancouver Community College’s Provincial Instructors and Adult Learning Program. He’s a certified welding engineering technologist with the Edison Welding Institute and the Canadian Welding Bureau. “We are committed to providing our growing Canadian market with innovative welding products and great representation from within Canada,” said Ron Olsson, president of Pro Spot International. “Art Ewing’s skills and knowledge make him an incredible asset to the Canadian market, we are excited to have Art on board.” Pro Spot International is a leading manufacturer of resistance spot welding equipment and tools specializing in applications for the collision repair industry and now the fabrication and restoration industry as well. The company is headquartered in Carlsbad, Calif.

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»| Industry Update |«

PPG Releases New RapidMatch Software Workflow PPG Automotive Refinish has released an enhanced version of its PaintManager program specific to the RapidMatch X-5 spectrophotometer and software workflow. The new RapidMatch software – with an improved color formula re-

trieval workflow process – is designed to increase speed, productivity and formula match accuracy. Combined with PPG’s advanced RapidMatch X-5 spectrophotometer, the software uses sophisticated algorithms to join match rating with a

new texture indicator, resulting in a heightened level of color characterization and formula precision. According to Mary Kimbro, global color director, PPG, the software requires no hardware changes, is easier to use, yields faster results and, in many cases, can find the best color match in just two clicks. “We have been able to successfully create a higher industry standard for color matching,” said Kimbro. “The RapidMatch X-5 spectrophotometer and our new optimized software, with all its upgrades, work together to make the PPG system more effective and efficient than ever.”

PPG’s RapidMatch X-5 spectrophotometer.

The enhancements automate routine processes, streamline formula searches, quickly identify best matches and accelerate downloads. With no new hardware required, collision centers only need to update their current PaintManager software to improve their capabilities. Customers utilizing the Internet will be updated automatically. One of the software’s key features is the capability to address texture. An integrated texture indicator compares the returned color formulas’ pigment component to the target vehicle color, thereby serving as a guide to the final surface appearance. The new software employs a “Green-Green-Go” search-rate-mix process to ensure the best starting color formula. When the RapidCircle 86 for Reader Service

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»| Industry Update |« Match X-5 spectrophotometer analyzes the target color, the texture and match rating results are displayed. A green match rating assures blendable results. Coupled with a green texture “OK” – indicating the returned formula’s texture is equivalent to the vehicle being repaired – the technician can then go directly to mix. Other formula returns may be finer or coarser (F=finer, C=coarser) compared to the target color. Another feature is a redesigned landing page with a simplified one-search launch pad of color information that has eliminated the need for separate OEM and wild card searches. The software also automatically predicts if the target color is a solid or metallic, and job tracking is easy with options to add customer information for each repair. Since high-throughput collision centers often use the RapidMatch X-5 spectrophotometer for all their color matching, an automatic download configuration is available with the software. Measurements from the device are organized and displayed as a reading list of color bars to ease sorting. PPG introduced the RapidMatch software match rating and blend/check workflow in 2010. Since then, unit sales of the five-angle measuring device have tripled globally.

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Kaeser Compressors Posts New Blog Entry Kaeser Compressors Inc. has published a new blog entry to company blog Kaeser Talks Shop: www.kaesertalksshop.com. Authored by System Design and Engineering Manager Neil Mehltretter, the blog entry explains what artificial demand in compressed air systems is and gives a quick, easy and free way to help reduce it. “While plants may take a look at the leaks in their compressed air system, they usually ignore artificial demand,” says Mehltretter. “Since artificial demand can account for 10 to 15 percent of the air in your system, this is an overlooked area of savings potential.” For more technical resources for the compressed air industry, Kaeser’s blog features articles such as: 䡲 Consider All the Costs of Compressed Air 䡲 Receiver Tanks for Small Compressed Air Systems 䡲 Piston Versus Rotary Screw Compressors 䡲 CAGI Data Sheets: An Apples to Apples Comparison

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»| Industry Update |«

National Demand for Lightweight Automotive Materials in North America to Reach 22.3 Billion Pounds Demand for lightweight automotive materials in the North American light vehicle market is anticipated to rise 5.2 percent annually to 22.3 billion pounds in 2018, according to research conducted by The Freedonia Group, an Ohio-based market research firm. Titled “Lightweight Automotive Materials in North America,” the study discusses how the

current race to lighten the automobile is largely being driven by increasingly stricter fuel economy standards being adopted throughout North America. “Advances will significantly outpace gains in automotive materials overall,” said analyst Bridget McMurtrie. “Regulatory pressure will be the major force propelling growth.”

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The best growth prospects are exterior and structural components, propelled by the ongoing development of lightweight materials suitable for use in structural applications and the substantial weight savings such materials can provide. The study expects that this segment will account for nearly threequarters of total average vehicle weight reduction through 2023, with body and frame applications alone accounting for about half. According to the study, interior applications are relatively mature and will see only limited growth going forward, as plastics have

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long been used in interior components, thus restricting opportunities for further weight reduction. Aluminum and highstrength steel represent the primary lightweight materials employed in this market. The Freedonia Group expects that aluminum will enjoy rapid growth in exterior and structural applications, as automakers explore the adoption of this material in place of steel for body components such as closures and panels. In addition, The Freedonia Group states that automakers will closely follow Ford’s highly publicized switch to aluContinued on pg. 92

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»| Industry Update |« Continued from pg. 90 minum for the body of its 2015 F-150 pickup to determine whether they too will make a similar move. According to the study, high-strength steel is predicted to offer the best opportunities for growth based on its relatively low cost and the ongoing development of new grades that provide a combination of exceptional strength and formability, which will make it the material of choice for structure and frame applications. Engineering plastics will remain the leading polymer type through the forecast period, having successfully supplanted metals in a number of applications based on advantages such as their ability to enhance design freedom. Demand for highperformance composites will rise rapidly from a small base due to the materials’ substantial vehicle weight savings potential, although their high cost will remain an obstacle to more widespread adoption.

Automotive Recyclers Association Urges GM to Supply OE Parts Data eaders of the Automotive Recyclers Association (ARA) are urging General Motors (GM) to live up to its “New Industry Standard for Safety” by providing professional automotive recyclers with access to crucial OE parts data. General Motors CEO Mary Barra is set to testify on Capitol Hill for a second time regarding the company’s massive ignition switch recall, while ARA members from across the nation are in Washington for the association’s annual Hill Day to advocate on behalf of the professional automotive recycling industry and their need for parts data. The association says that the complexity of today’s automotive supply chain underscores the importance of access to VIN-specific OEM parts numbers, build sheet data and other identifying information. Automakers rely on an expansive number of suppliers from all over the world, and minor variations in a vehicle part model, modifications to manufacturing materials, external factors impacting a third-party supplier that slow or stop production, and a myriad of other risks can all have tremendous impact on – and potentially disrupt – parts supply sources, according to the ARA. “The significance of OEM part numbers is demonstrated by the ongoing GM ignition switch recall investigation and

revelation that GM engineered a new ignition switch nearly a decade ago,” said ARA CEO Michael E. Wilson. “However, the redesigned part was not given a new part number – an act contrary to standard operating procedures. As a result, redesigned parts were introduced into the market and installed on GM vehicles. And without a new part number, those corrected ignition switches are indistinguishable from the flawed switches that resulted in 13 deaths.” Added ARA President Ed MacDonald, “Information about a part and where it is produced is critical to all stakeholders in the automotive parts supply chain. That is why ARA members are up on the Capitol Hill meeting with their federal representatives and asking for their support in requiring auto manufacturers to enhance access to recall information and integrate parts data into the automotive parts supply chain.” ARA went on record earlier this year at the 14th International Automotive Recycling Congress in Brussels, Belgium, when Wilson called on the automotive manufacturers in attendance “to become better economic, environmental and safety partners by releasing OEM build sheet data to the professional automotive industry’s inventory management entities, just as they do for insurance companies and the collision repair industry.”

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»| Industry Update |«

Virginia-Based Body Shop Revamps Local Children’s Shelter Van

Richard Heneger Jr. got lots of love for helping the Rescue Mission.

By Gina Kuzmick ichard Henegar Jr., better known as “Junior” to his friends and customers, first achieved fame two years ago when he fixed a Radford University student’s

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car free of charge after it was vandalized with homophobic and derogatory slurs. Word of his good deed became so widespread that it landed him a spot on “The Ellen DeGeneres Show” and earned an appearance from both Ellen DeGeneres and pop star Pink in one of his shop’s commercials. But the estimator and manager of Quality Auto Paint & Body in Roanoke, Va., decided that there was still more to do in the world. After receiving such positive feedback, Henegar

established his own nonprofit called Quality Cares, which aims to help individuals in need through automotive repair. His first project? A revamped van for a local shelter called Rescue Mission that spews bubbles and spreads happiness wherever it travels. “My inspiration for the design was the kids,” he said, explaining that the van transports children between the shelter and a day camp-type program. “Most of them are homeless and pretty unfortunate. I wanted to take their

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mind away from their daily struggles with something cool, something they’ve never seen before.” The van had endured years of wear and tear and wasn’t exactly in the greatest condition. So Henegar reached out to a friend who owns a vinyl graphic shop to see if he could help with the redesign. The two men, along with another colleague, worked to create a vinyl “animated Roanoke” design for the van’s interior, which colorfully showcases popular sights around downtown.

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»| Industry Update |« The outside of the van now serves as a traveling billboard for Rescue Mission, showcasing shelter children holding up signs thanking local individuals and businesses who helped sponsor the project. The interior of the van now features an “animated Roanoke” theme, and the exterior serves as a billboard for Rescue Mission. To make the van even more kid-friendly, Henegar installed a special hatch at the vehicle’s rear that reads, “Bubbles Only.” Instead of opening to receive fuel, the hatch emits an outpour of bubbles, much to the children’s delight. Under the banner of Quality Cares, Henegar’s

dream project is to overhaul a school bus and use it as a platform to combat bullying, since a majority of bullying takes place on buses. “I do a lot of volunteer work for schools and speak about anti-bullying,”

kids will get to ride the Cool Bus for a week.” But he says that project will have to wait until he has more time and money to fund it. “I think Pink would be all over it, though,” he said.

Ford Unveils Lightweight Concept Car Just several months after introducing the all-aluminum new F-150, Ford Motor Company is now aiming to implement that same lightweighting construction to sedans. The automaker unveiled its Lightweight Concept vehicle, which uses advanced materials to explore future weight-reduction solutions that could improve performance and fuel efficiency while reducing carbon dioxide emissions. The design reduces the weight of a 2013 Fusion to that of the smaller Ford Fiesta, resulting in a nearly 25 percent Ford’s Lightweight Concept vehicle. weight reduction.

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he said. “I’d like to trick a school bus out so much that every kid would want to ride it. We’d call it the ‘Cool Bus.’ Bus drivers could keep a tally on their routes, and the route that has the most well-behaved

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»| Industry Update |« The vehicle represents the latest phase of Ford’s research into developing sustainable technology solutions that are affordable for consumers and can be produced in large volumes across the product lineup. This research has also led to a weight reduction of up to 700 pounds in the all-new F-150. “Consumers today want better fuel efficiency, but they also want more technology and features in the car, which usually adds weight to the vehicle,” said Raj Nair, Ford group vice president, Global Product Development. “A focus on lightweighting will be fundamental to our in-

dustry for years to come, and we are investigating many advanced materials applications as possible solutions for weight reduction in our vehicles.” To reduce weight, Ford engineers incorporated advanced materials into the entire design of the vehicle, including power train, chassis, body, battery and interior features such as seats. The research vehicle was developed with the U.S. Department of Energy’s Vehicle Technologies Program, together with Cosma International – a subsidiary of Magna International – to illustrate long-term potential lightweighting solutions.

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NHTSA Study Says Car Crashes Have $871 Billion Impact on U.S. The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has released a new study that underscores the high economic toll and societal impact of motor vehicle crashes in the U.S. The price tag for crashes rings in at $871 billion in economic loss and societal harm. This includes $277 billion in economic costs – nearly $900 for each person living in the U.S. based on calendar year 2010 data – and $594 billion in harm from the loss of life and the pain and decreased quality of life due to injuries. “No amount of money can replace the life of a loved one, or stem the suffering associated with motor vehicle crashes,” said U.S. Secretary Anthony Foxx. “While the economic and societal costs of crashes are staggering, today’s report clearly demon-

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»| Industry Update |« strates that investments in safety are worth every penny used to reduce the frequency and severity of these tragic events.” NHTSA’s new study, The Economic and Societal Impact of Motor Vehicle Crashes 2010, cites several behavioral factors as contributing to the huge price tag of roadway crashes based on the 32,999 fatalities, 3.9 million non-fatal injuries and 24 million damaged vehicles that took place in 2010. Key findings include: Drunk Driving: Crashes caused by drivers under the influence of alcohol accounted for 18 percent of the total economic loss due to motor vehicle crashes and cost the nation $49 billion, an average cost of $158 for every person in the U.S. Including lost quality of life, these crashes were responsible for $199 billion or 23 percent of the overall societal harm caused by motor vehicle crashes. More than 90 percent of these costs occurred in crashes involving a drunk driver with a blood alcohol concentration (BAC) of .08 or higher. Speeding: Crashes involving a speeding vehicle traveling faster than the posted speed limit or too fast for conditions accounted for 21 percent of the

total economic loss and cost the nation $59 billion in 2010, an average cost of $191 for every person in the U.S. Including lost quality of life, these crashes were responsible for $210 billion or 24 percent of the overall societal harm caused by motor vehicle crashes. Distraction: Crashes involving a distracted driver accounted for 17 percent of the total economic loss and cost the nation $46 billion in 2010, an average cost of $148 for every person in the U.S. Including lost quality of life, these crashes were responsible for $129 billion or 15 percent of the overall societal harm caused by motor vehicle crashes. Pedestrians and Bicyclists: Crashes involving pedestrians and bicyclists accounted for 7 percent of the total economic loss and cost the nation $19 billion in 2010. Including lost quality of life, these crashes were responsible for $90 billion or 10 percent of the overall societal harm caused by motor vehicle crashes. Seatbelts: Seatbelt use prevented $69 billion in medical care, lost productivity and other injury- related costs. Conversely, preventable fatalities and injuries Continued on pg. 99

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BUSINESS » The Perfect Storm Continued from pg. 42 are? Our organization defines the customer as “anyone/anything who has a vested interest in the successful completion of repairs.” So, to us, our customers are: 1. The consumer 2. The insurance company 3. The insurance agent 4. Our employees In the past, customer service was solely focused on the vehicle owner – and that was if you were a good shop. But there are other people who factor into many business models, and we treat them as customers, too. Customers are concerned less with your challenges as they are with their own, and rightly so. That’s human nature. Creating ways to connect with customers is

the only key to keeping them, and that’s called communication. Your customer will be a lot more understanding regarding winter challenges when you already have a plan in place and make that preemptive call or text, advising them of winterrelated delays/challenges. Sadly, many shops today are still not prepared for the unexpected. Advising a customer that their car is late after the delivery date has expired is too late. Being proactive is the key to a calm, understanding customer. I would hate to see what our stores would look like if we didn’t require daily documented communication. Updating every other day is a day too late because too much can happen in one day. In the customer’s mind, as soon as the snow melts, it’s as if it never happened. Despite all of the ef-

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fort, communication and extended hours, there are those out there who will hold you to the same standard in the beginning of September (traditionally a slow month) as they will in the peak of winter. Pair this with a brutal winter, complex parts procurement and delivery challenges, continued emphasis on performance measurement such as CSI, cycle time, loss severity, etc., and…well, welcome to our world. Our KPIs were negatively impacted. Time from parts order to deliver doubled, time from car arrival to shop to estimated doubled and cycle time increased like never before in the last quarter of 2013. But fortunately, none of our insurance relationships were compromised. We were still held to the same standards with KPIs despite a 20 percent increase in cars to the stores (not including customers coming to stores just for estimates and ultimately not choosing us to do the repair). There were some unofficial considerations made by our insurance partners in lieu of the extraordinary circumstances, and for that we were extremely grateful. A 20 percent increase in revenue might sound like a godsend to some, but when you operate on the margins we do and employ Six Sigma lean practices, 20 percent for too long can suffocate you as you’ll bottleneck at some point. There is only so much nitrous in the canister. Our profit margins in fourth quarter 2013 and first quarter 2014 were the worst we ever had. We were in the red, and that pretty much says it all.

Are You Ready? » Are you ready? I don’t know about you, but the next time someone tells me how lucky we were to have gotten all this business, I’ll happily agree. But silently, to myself, I’ll be praying that Old Man Winter takes a well-deserved vacation. BSB Lou Berman is vice president of sales for Collision Care Auto Body Centers. He can be reached at lberman@ collisioncareabc.com. Circle 114 for Reader Service

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»| Industry Update |« to unbelted occupants accounted for 5 percent of the total economic loss and cost the nation $14 billion in 2010. Including lost quality of life, failure to wear seatbelts caused $72 billion or 8 percent of the overall societal harm caused by motor vehicle crashes. “We want Americans to live long and productive lives, but vehicle crashes all too often make that impossible,” said NHTSA Acting Administrator David Friedman. “This new report underscores the importance of our safety mission and why our efforts and those of our partners to tackle these important behavioral issues and make vehicles safer are essential to our quality of life and our economy.” The economic cost of motor vehicle crashes in the U.S. is the equivalent of 1.9 percent of the $14.96 trillion gross domestic product (GDP) in 2010. Factors contributing to the price tag include productivity losses, property damage, medical and rehabilitation costs, congestion costs, legal and court costs, emergency services, insurance administration costs and the costs to employers, among others. Overall, nearly 75 percent of these costs are paid through taxes, insurance premiums and congestion-related costs such as travel delay, excess fuel consumption and increased environmental impacts. These costs, borne by society rather than individual crash victims, exceeded $200 billion.

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»| Classified |«

Continued from pg. 97

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Product

Showcase Prevent Cross-Contamination Between Steel and Aluminum Steck Manufacturing’s Aluminum Conversion Kit aims to prevent corrosion on aluminum components. The kit includes Soft Strike Rubber Dolly Body Covers and Dinging Spoon Cover, made from Buna rubber for steel heel dollies and dinging spoons. It also includes a Soft Strike Hammer Cover, which is made of vinyl to allow for an easy transition from working body tools on steel to aluminum without fear of cross-contamination. Steck Manufacturing www.steckmfg.com Circle 150 for Reader Service

Certified Steel Bumpers Diamond Standard Certified Front Steel Bumpers are 100 percent CAPA certified and are the only U.S.-made plated and painted front steel bumpers. Dynamic crash testing, cradle to grave parts traceability and the Diamond Standard Security Shield product liability warranty are just some of the added benefits of these bumpers. Diamond Standard Parts www.diamondstandardparts.com Circle 153 for Reader Service

Easily Update Frame Rack Chief’s Structural Holding Package allows shop operators to use their existing frame racks to properly repair aluminum vehicles. Included in the 2015 Ford F-150 Collision Repair Program, this product includes more than 50 components such as vice clamps and bolt-on surface plate attachments. The product’s four bases fit into the rectangular deck holes on most Chief frame racks, so there is no need to modify an existing frame rack. Chief Automotive Technologies www.chiefautomotive.com Circle 151 for Reader Service

Light-Duty Puller

The R80DTXF tire changer features an automatic bead lifter, variable speed turntable and bilateral bead loosener with direct hand-operated controls. Other features include a traveling drop-center tool, top bead assist rollers, dual lower bead lifting discs and a nylon non-marring wheel restraint device.

Capable of taking on up to 5 tons, the Quick Puller offers dual independent pulling capacity to enable setting up two pulls at the same time. Ideal for tight spaces, the integrated handle and swivel wheels ensure mobility for easy setup and storage. Combine the Quick Puller with Wedge Clamp’s EZE Tie Down anchoring system for a productive express repair bay. Order now through July 31, 2014, and receive a $150 rebate. Call (800) 615-9949.

BendPak/Ranger www.rangerproducts.com Circle 152 for Reader Service

Wedge Clamp Systems www.wedgeclamp.com Circle 154 for Reader Service

Change Tires With Ease

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ADVERTISER INDEX COMPANY NAME

AAPEX Advanced Measurement Systems, Inc. AFC Air Filtration Co. Aflac Aframe Spray Booths Airomax/U.S. Body Products AirVANTAGE Amerex Corp. ArmorThane Coatings Inc. Automotive Mgmt Institute Automotive Service Equipment Automotive Video/AVI AutoZone Axalta Coating Systems BASF Corp. BendPak Blair Campbell Hausfeld Car-O-Liner Co. CCC Cebotech Inc. Certified Auto Parts Association Chief Automotive Systems Chrysler Group LLC Crash-writeR DEKRA Dent Fix Equipment Diamond Standard Brand Parts Group

PG #

95 84 86 35 46 82 18 50 62 94 60 79 51 5 15, 52-53 56, Insert 50 93 19 21 70 7 81 31 92, 96 98 9 17

COMPANY NAME

Dominion Sure Seal DV Systems Dynabrade Inc. Eagle Abrasives Evercoat Excel Tees FS Curtis Garmat USA Herkules Equipment Corp. Homak Manufacturing Company Inc. Hyundai Motors America Induction Innovations Innovative Tools & Technologies, Inc. International Epoxies & Sealers Kaeser Compressors Lenco D/B/A NLC, Inc. Malco Products Martech Services Co. Matrix System Automotive Finishes LLC Messe Frankfurt Mirka Abrasives Mobile Spray Technology Motor Guard Corp. NACE NAPA Nissan Motor Corp. USA Oâ&#x20AC;&#x2122;Reilly Auto Parts Performance Gateway

PG #

40 26 94 97, 101 3 96 72 11, 45 28 87 47 38 29 73, 76 78 80 99 36 39 61 48 74 98 65 75, 91 23 83 42

COMPANY NAME

PPG Industries Pro Spot International Pro-Spray Finishes RBL Products Reflex Truck Liners Repair Shop Loans Rubber-Seal Products S.A.I.M.A. Of N. America Sata Spray Equipment Scorpion Truck Bed Linings SEMA Sherwin-Williams Co. Shop-Pro Equipment Southern Polyurethanes Spanesi Spraymax Steck Mfg Co. Tsunami Compressed Air Solutions TYC/Genera Corp. Ultimate Linings UniCure Spray Booths Urethane Supply Co. U.S. Chemical & Plastics Valspar/Debeer Wizards Products/RJ Star Inc. Zendex Tool Corporation

PG #

Cover 2-1 Cover 3 57 4, 59 56 90 16 Cover 4 27 58 85 49 37 67 22 43 32 99 41, 69 55 42, 88 33 77 71 89 58

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By the

Numbers Vital collision industry stats

Do You Feel DRPs Hamper Your Ability To Properly Repair The Vehicle? What Is The Average Number Of Jobs You Perform Per Week?

Average Number Of Jobs Performed Per Week

Yes 20%

Sometimes 40%

33%

35%

No 40%

30%

25% 24%

Base: Just DRP shops Source: 2013 BodyShop Business Industry Profile

20% 17%

Do You Charge For The Following Procedures?

13%

15%

10%

Over 30

20 to 30

15 to 20

11 to 15

6 to 10

5 or less

On average, each shop performs 12.7 jobs per week; the median is 10. Source: 2013 BodyShop Business Industry Profile

Procedure Seam sealer Removal of stripes/decals/moldings Color sand and buff Panel bond kits Misc. hardware & fasteners Pull for access LKQ cleanup Sound deadening restoration Dismantle of LKQ assembly Tape/mask jambs Diagnostic labor Body materials Mask for prime Detail for delivery Feather edge & block Test fitting of parts Administrative documentation time

%Yes 73 79 53 74 69 74 77 72 69 56 53 37 30 22 32 22 9

%No 11 7 18 14 7 3 10 8 10 25 15 37 49 49 36 52 75

%Sometimes 16 14 29 13 24 23 14 20 21 19 32 26 21 29 32 26 16

Source: 2013 BodyShop Business Industry Profile

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July 2014 | BodyShop Business

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