Spot Welding » Spraybooth Technology » Social Media Tools
April 2013//Vol. 32 No. 4
www.bodyshopbusiness.com
14th Annu al
Five readers’ questions make the cut and get answered by collision experts.
Submit your Questions for Reader’s Choice 2014 for a Chance to Win $50! pg. 28
Circle 1 for Reader Service
Inside
April April 2013
Vol. 32 No. 4
28
ON THE COVER Reader’s Choice Five lucky readers get their questions answered by experts – and win $50! For your chance to win $50, see pg. 28.
Cycle Time ......................................................................................29 “Why is cycle time so important?”
Parts Procurement ..........................................................................32 “Will we all be forced to order parts online in the future?”
Plastic Repair ..................................................................................36 “How can I determine what kind of plastic I’m working on?”
Parts Inventory ................................................................................46 “How do I calculate depreciation into leftover parts?”
Post-Repair Inspection ....................................................................50 “What are some things post-repair inspectors look for?”
FEATURES
56 Spot On
TECHNICAL Today’s sophisticated vehicles are making a stronger and stronger case for owning an inverter spot welder.
SHOP TALK Editor’s Notes
6 8 Publisher’s Perspective 10 Clark’s Corner 18 Web Presence Management A day at the salon...or not.
questions Submit yourChoice 2014 for Reader’cshance to for a 50! pg. 28
win $
Do you know what you do well?
A tale of tumbling spraybooth doors.
Twitter’s new Vine app may yield fruit.
BODYSHOP BUSINESS (ISSN 0730-7241) (April 2013, Volume 32, Number 4): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2013 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 Industry Update ..............................................................................16 Technology Focus ............................................................................22 NASCAR Performance ......................................................................26 Product Showcase............................................................................85 The Shop ......................................................................................88
Circle 3 for Reader Service
Guess
the Car Reader Contest! Win $50! 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 April 30. *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.
See the May 2013 issue for winner of Guess the Car #120.
D-art = (Dodge) Dart
#119
April 2013 | BodyShop Business
Tore-rent = (Pontiac) Torrent
Circle 4 for Reader Service
!
WINNER
Ken Lamb, manager, Goodwin Chevrolet Buick, Oxford, Maine
#121
4
#120
SOLVED!
Circle 5 for Reader Service
Editor’s
Notes
Publisher
S. Scott Shriber, ext. 229 sshriber@babcox.com Editor
Anyone Home? t’s not often that I experience such poor customer service that I’m motivated to write about it, but a recent incident with a hair salon did just the trick.
I
I don’t know about the rest of the country, but there have been “maleoriented” hair salons popping up all over Cleveland like toadstools. They typically feature bars inside, along with comfortable leather couches, plasma screen TVs and classic rock blaring from ceilingmounted speakers. I’ve tried just about every hair cutting establishment around, from the low-priced franchise stores to the high-end salon and spas, so I thought it was time to try this place specifically geared toward guys. When I walked in, they didn’t ask for my name or what I was there for. Instead, they asked if I wanted a beverage. In case you think that’s what I’m
going to complain about, think again. In my mind, you can do no wrong if you offer me a beer. The experience overall was a good one. The haircut turned out pretty decent and the stylist was nice. It’s what happened five weeks later when I called to make another appointment that set me off. I found out they didn’t open till 10 a.m., so I called at 10:30 – and no one answered. This kind of irked me. But still, I gave them a pass, thinking maybe they were busy. So I left a message, stating my name and what day and time I wanted to come in. What happened next, or more specifically what didn’t happen next, really upset me. No phone call back. Nothing. Nada. Zip. Zilch. In my mind, they had one day to call me back – that day. Even if they had called me back the next day, the damage would have been done. But they didn’t. They never called at all. I won’t rule out ever patronizing this business again, but I haven’t been back since this experience. The lesson to all businesses? Make sure someone answers the phone during business hours. Or at least that someone returns a customer’s message promptly.
Jason Stahl, Editor Email comments to jstahl@babcox.com
Jason Stahl, ext. 226 jstahl@babcox.com Associate Editor
Gina Kuzmick, ext. 244 gkuzmick@babcox.com Contributing Editors
Charlie Barone, Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, Tom Ferry, Curt Harler, John D. Lyman Sr., Hank Nunn 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 & Audience Development
Brad Mitchell, ext. 277 bmitchell@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.
Circle 7 for Reader Service
Publisher’s
Perspective Do You Know
What You Do Well? I
t seems like such a simple question. In reality, it’s probably one of the most difficult questions to answer. The only one harder is the really important one: “Do you know and are you willing to admit to what you don’t do well?”
I think it’s human nature to avoid these two questions because they make us go places that are uncomfortable. Internal reflection can be a rewarding journey, but it can also be a train wreck. Still, I think it’s well worth the risk if you go at it in the proper frame of mind. All of us have things that we’re good at. Usually these are things we enjoy doing. Personally, I like working with people and doing things that help people and organizations. It gives me a sense of purpose and gratification. Conversely, laboring deeply on spreadsheets and analytical work is just not what I like to do. I’m probably not really good at it, so it’s best if I leave those tasks to others in my organization.
The old adage that you have to have the right people on the bus is only half the answer. You have to have those people in the right seats on the bus doing things they can excel in. I urge you to take a look at yourself and really dig into what you’re good at and not so good at. Then, do the same for the people on your team. Make sure you have all your business tasks covered – but by the people in your organization who are best suited for those tasks. This simple procedure, although difficult to complete, will take your organization to the next level and beyond. Doing the same thing and expecting a different outcome is known as insanity. Go ahead, look in the mirror and take the next step toward driving your team to the next great thing.
S. Scott Shriber, Publisher Email comments to sshriber@babcox.com
Circle 9 for Reader Service
Clark’s
Corner
By Mark Clark
Opening the Door
on Spraybooths nclosing the spraying of flammable material inside a fireproof box is the impetus for automotive spraybooths. Various regulatory agencies, led by fire code enforcement, call for containing any combustion inside a corral that won’t readily burn, and metal sheeting, cement blocks and thick sheetrock all qualify. When my PBE career began back in the Stone Age of the 1970s, fewer officials were involved in building a compliant spraybooth. These days, as many shops can attest, the electrical, building, environmental, safety and fire inspectors all have something to say about what’s legal in your area.
E
occupancy permit and was borrowing big to cover the $3,500 cost. We decided we could save money and assemble the box ourselves pretty easily – no deep exhaust pit in the floor, and no specific height for the exhaust stack out the roof (so we went right out the back of the shop wall.) We only hired out the electrical wiring. The shop’s techs volunteered to help, and in two nights (and five cases of beer), we bolted together most of a legal spraybooth. The hardest part was getting the filtered door assembly to hang square in the big, wobbly doorway. We finally succeeded, loaded the filters and started painting cars.
My First Sale » The first spraybooth I recall selling was a cross-draft DeVilbiss – your basic hip-roof (so the lights pointed toward the car), 14-foot-wide by 24-foot-long by 9foot-high metal box. There was no air replacement unit, so when the fan kicked on, it sucked all the air and heat out of the main shop and slammed shop doors like explosions. The purchasing shop was forced into buying the booth to get the city to issue it an
When my PBE career began back in the Stone Age of the 1970s, fewer officials were involved in building a compliant spraybooth. 10
April 2013 | BodyShop Business
Circle 11 for Reader Service
»| Clark’s Corner |« Filter Folly » Installing filters in a spraybooth was a thankless task back in the day, and it still is today. But, since moving air always takes the path of least resistance, any gap around the filter and its mounting hole will cause huge amounts of air to bypass it and rush into the booth uncleaned. Whether cardboardframed, heat-sealed and wire framed, or rolls of bulk media, intake filters have to fill their mounting holes perfectly or shocking amounts of dirty air can blast into the booth cabin. That original DeVilbiss booth’s filtered doors each held six 20-by25 intake filters. Taking plenty of time to seat all 48 edges squarely and cover any possible gaps with masking tape made a huge difference in clean paint work. The first thing to wear out in that booth was the folded rubber seal
12
April 2013 | BodyShop Business
(like an inner tube) along the bottom of the door, where it dragged along the floor. The moment it wore through, dirt whooshed under the door instead of getting sucked through the filters. The vibrating exhaust fan shook the metal walls every time it ran, and pretty soon, the dirty air was leaking in along the seams of the panels, too. You could see the smudge tracks on the white walls. Even today’s double-walled, insulated, top quality booths need to be squared up, caulked up, tuned up and cleaned out on a regular basis.
Door Debacle » Time passed, and I actually sold some spraybooths to shops that weren’t responding to local fire regulations but wanted to achieve cleaner paint work. Even back when the door rate was $20 an hour, keeping
Circle 12 for Reader Service
the dirt out of the paint made production flow much faster. Many of my customers in small town Iowa wanted to build their own spraybooths to meet local fire codes. In most towns, cement block construction met the flame containment rating, as did double layer 5/8-inch sheet rock. Both DeVilbiss and Binks offered a filtered door assembly that you could affix to any compliant sidewalls, and I sold several to do-ityourself customers. My recollection is that the door kit shipped to the Midwest for about $1,200 shop cost. I had one farm town shop that refused to spend that kind of money for some doors. The owner located his project in the rear corner of a cinderblock building so he would have two booth walls already in place. He laid a block wall down the third side and started building his doors.
Circle 13 for Reader Service
»| Clark’s Corner |« I’m no contractor, but it seemed to me a spraybooth door made of two big sheets of 5/8-inch sheetrock screwed to metal twoby-fours would be kind of heavy. Even with the two (two!) filter holes he cut in each door, they weighed a ton. I wasn’t there to see the door construction, but I was on hand for the mounting circus. He and three techs wrestled the doors into place, used some hardware store hinges to screw them into the walls and stepped back to admire their work. The painter went to reopen them and, as he pulled them back, both tore free of the hinges, crashed to the ground and broke apart. His $1,200 factory door kit arrived within the week.
A Common Mistake » The shop also made the common mistake of thinking that less filtered area
would make for less dirt in the paint. The exact opposite is true. You can’t have too much filtered area. The exhaust fan in an average spraybooth will constantly pull about 10,000 cubic feet of air every minute. If there is insufficient filtered air available, the fan will drag air from every crack, gap and pinhole in the cabin. In a cross-draft booth, I’m a big fan of pleated filters for the intake air. In the same 20-by-25 opening, you can have four or five times that in filtered area. On the subject of filter media, remember that what makes any downdraft spraybooth perform well is the sophisticated, $1,000-plus, air-balancing filter pad set. Through the magic of physics, these filters won’t pass air though them until the pressure across the face of the filter is even, ensuring smooth air flow through-
Circle 14 for Reader Service
14
April 2013 | BodyShop Business
out the cabin – a heck of a neat trick! A $300 filter set might fit the holes, but won’t do the same thing.
An Ounce of Prevention » Whatever style of fireproof box your shop is using to paint cars, take plenty of time to load and secure the best quality filters you can buy. At $45 per labor hour, every minute the painter spends removing dirt and trash from the paint work costs the shop $0.75. An ounce of prevention is worth a pound of cure. BSB Mark R. Clark is the owner of Professional PBE Systems in Waterloo, Iowa; he is a wellknown industry speaker and consultant. He is celebrating his 25th year as a contributing editor to BodyShop Business.
Circle 15 for Reader Service
Industry
Update New ASA Executive Vice President Talks PartsTrader, Other Challenges Facing Industry By Jason Stahl ust 24 hours at his new job as executive vice president of the Automotive Service Association (ASA), Dan Risley spoke to reporters on what he hopes to accomplish in his new position and the challenges that face the automotive industry – specifically collision. In a 24-year career working for CCC Information Services, BASF, the Society of Collision
J
Repair Specialists and Allstate, Risley believes it’s the last six he spent with the latter that may help him the most in his new position with ASA. “That gave me a completely different perspective than what I had in previous roles,” said Risley. “I think every one of those roles I held was a building block to help me lead or represent ASA, but by virtue of my role with Allstate being the most recent one, the background information
and insight I got from the insurer perspective will certainly help me in understanding what motivates them. And as our members look to work with insurers – because whether you’re a DRP or a non-DRP, you’re going to be working with insurers – it will help us bridge some of those gaps that are out there.” Risley feels that one of his strengths is helping to bring diverse groups together that have different objectives and opinions
Dan Risley
and coming up with a solution that can be a win for all. “Whether you’re an independent or MSO, there are some very broadbased issues that adversely impact each and every one of those folks. Being able to not only understand what those issues are but, more importantly, find a way to take some action that will help improve that
Illinois Restoration Shop Owner Invents Reusable Paint Mixing Cup By Jason Stahl onnie Espig characterizes himself as a little guy in a small shop in the sticks. But he’s come up with a very big idea that could save shops a lot of money, not to mention help out the planet. It’s called the Green Cup, which Espig says is the only 100 percent reusable paint mixing cup on the market. He came up with the idea in 2009 after starting his own restoration
R
Ronnie Espig and his Green Cup.
16
April 2013 | BodyShop Business
shop and becoming painfully familiar with the high cost of paint and materials. “I found out that one of the biggest expenses was those plastic cups, so to eliminate that expense, I took the old idea of aluminum paint mixing sticks and turned it into a cup,” says Espig. Espig had a friend who’s a machinist create a prototype: an aluminum 32-ounce cup with the same measuring numbers a plastic cup has, only inside the cup. It also has a pour spout and is stackable. And the best part? Cleaning it out with a little thinner between jobs, it can be used over Circle 120 for Reader Service »
»| Industry Update |« situation by working together with all industry facets is critical,” Risley said. “You have to try to not be adversarial but find a way to get common ground. We may not be able to get everything we want, and they may not get everything they want, but somewhere in the middle we will get something everyone can live with.” Risley said that his top priority is to address NACE and ASRW, get fully engaged with the industry, and improve membership growth and retention. “We need to make sure we’re not only listening to our members but responding to what their needs are,” he said. “Thus far, the team has done an admirable job of that. I look to build upon that, and going to the April CIC meeting will give me some exposure
to what some of those concerns are. I have some cursory knowledge of that, but having been removed from the past six years, it is just cursory knowledge. So I’m looking forward to getting more ingrained and intune with the industry.” When PartsTrader was brought up, Risley complimented ASA on the job it has done so far in educating the industry on the facts about the parts procurement program. But he also offered his personal opinion. “You’re not going to get rid of PartsTrader or the advancements in technology,” Risley said. “If PartsTrader were to go away tomorrow because State Farm decided they no longer wanted to pilot it or they didn’t feel it was providing value, there will definitely be another one. Some other insurer or vendor will
and over again. He had tried cleaning out plastic cups before, but found there was always some residue left. Plus, the measurement numbers would eventually wear off. As a one-man shop in Hebron, Ill., painting cars, motorcycles, goalie helmets and miscellaneous other things, Espig says he used to go through two boxes of plastic cups a month, so he estimates he’s now saving roughly $1,500 a year. “The average MAACO in my area uses a whole pallet of them per month, so I can’t imagine what they would save,” he says. The No. 1 question Espig gets « Circle 121 for Reader Service
come into that space because, conceptually, there are probably some efficiencies to be gained there – and, by the way, there are cost savings to the insurers as well. But it’s not going away. It’s not illegal, so that’s why they’re able to do what they’re doing. “As of right now, probably the best thing we can do is educate ourselves and stay closely tied to those groups so we can share with them our concerns and hopefully shift and change the direction they’re headed.” Ron Pyle, president of ASA who also participated in the press conference, added that ASA strives to provide more “light” when it comes to controversial topics like PartsTrader, not generate more heat. “I know PartsTrader is an issue that has stirred up a lot of emotions, but
asked about the Green Cup is, “Will someone understand how to use it?” But there is virtually no learning curve, says Espig, since the exact numbers that are printed on the outside of a plastic cup are on the inside now. The hard part is affecting a behavior change in painters. “If I own a large shop of 10 guys or more and I’m going to save money from this, it’s a simple decision to have guys do this,” says Espig. “I’m still paying the guy regardless of what he’s doing. It’s not hard to put some thinner in there. Not only that, a lot of guys in between doing jobs will wash their guns, so you can
in reality what we’re hearing now is that a lot of folks are beginning to realize that, in some cases, there are actual benefits to them,” said Pyle. “Obviously, some folks don’t like the interjection of other parties into their business model, so that will continue to be controversial. But I don’t really believe the industry should devote so much of their attention to something that really is just an advancement in technology and a different business model. It’s not as important as some of the other major issues we need to really have our eyes on.” Risley added that it’s important for ASA to maintain the same approach it has with PartsTrader of “flushing out” the facts so that they can maintain dialogue with them. Continued on pg. 72
throw the cup in the gun washing machine. You have to wait for flash time anyway. Once I tell people that, they say, ‘I guess you’re right.’” Espig has sold about 450 Green Cups so far via local trade shows, Facebook and Twitter. He figures he has put roughly $5,000 of his own money into building a small inventory and pursuing a patent. Whether he gets that back or not isn’t important to him: it’s about helping the industry and the planet. “We’re throwing money away and destroying Mother Earth, and right now, this planet needs all the help it can get.” www.bodyshopbusiness.com 17
Web Presence
Management
By Mark Claypool
Swing from
the Vine
ast month, we discussed using Twitter as an outreach marketing tool for your business. Tweets are short and sweet and engage your followers in your business on an ongoing basis. Twitter helps you get your brand in front of your followers – if you’re posting often enough. It’s also a great way to engage Generation Y in your business (people under 30 years old). And now there is Twitter’s new Vine app. Vine, which was launched early this year, allows you to shoot and upload videos to your Twitter account. It’s similar to Instagram, but what makes it different is that it’s video, not pictures. Vine allows you to do so much more with Twitter than you ever could before.
L
How Does It Work? » Vine
Two examples of Vine videos from Taco Bell and OneNine Design: simple yet effective.
18
April 2013 | BodyShop Business
inserts a short (six seconds or less) looping video (with sound) into a tweet. You can easily start and stop your video by clicking a button, so you can create interesting videos literally in seconds. However, Vine is currently only available for the iPhone and the iPad Touch.
Five Simple Steps 1. Start by downloading and installing Vine from iTunes https://itunes.apple.com/ app/vine-make-a-scene/id592447445. 2. Setup a Vine account with your business Twitter profile. You may also use your email address. 3. On your iPhone, look for people to follow, go to your profile, and click on the “People” icon on the upper-right side of the screen. This can also be done from your settings screen, where you can use the “Find People” option in Friends. 4. Start recording videos by clicking on the video camera icon. Start and stop your recording by simply tapping your finger on the screen. 5. Once you’re finished recording, click on “Continue,” which will then allow you to share your video on your Vine and Twitter accounts.
Business Uses » There are many uses for Vine in a collision repair business. Generation Y has about a six-second attention span anyway (just kidding, sort of), so there’s a lot you can do. Consider the following: 1. Send a quick vehicle status update to a customer who’s active on Twitter. 2. Send a message from the owner or CSR. 3. Recognize employees on their birthdays or work anniversary dates, or for training received, certifications earned, expertise and more. 4. Ask happy customers to give a quick testimonial. 5. Show your lobby area, signage out front, remodeling in process, etc. 6. Show new equipment.
Circle 19 for Reader Service
»| Web Presence |« 7. Highlight charitable campaigns and events your shop participates in. 8. Show cool cars you’re working on or see (don’t show license plates, however). 9. Do quick public service announcements on buckling up, no texting and driving, proper use of car seats, etc. 10. Airbag demonstrations. 11. Recognize first responders. 12. Celebrate holidays. 13. Setting clocks forward and back an hour at that time of year as a reminder. 14. Show how paint is sprayed on a car. 15. Grinding (lots of sparks make a dramatic video). 16. Welding (people enjoy seeing this, but guard your eyes when doing so). 17. Do a brief demonstration.
18. Promote contests. 19. Record something funny.
Examples » I can’t show you examples from our industry…not just yet, anyway. It’s too new and I couldn’t find anyone using it yet. If you’re using Vine, please send me your examples so I can include them in future columns. But let’s look at some other industry examples. Visit https://vine.co/v/bvla YggdIiU to see a Vine video by Taco Bell. Makes you hungry just watching it, doesn’t it? Or visit https://vine.co/v/bdYhY50DL33 to see an example from OneNine Design promoting an Art Walk. Using this OneNine Design example, consider how you can promote local community events, fundraisers, etc., while getting your brand included in the process. It will loop over and over, creating
marketing impressions each time. According to Drew Gorlewski, social media account manager at Optima Social Media, “Vine can be used to be creative and unique. It can be used to advertise the product thoroughly, and advertising is on a completely low budget, like in Taco Bell’s video. No fancy cameras, special effects or actors. A simple idea is taken to the next level when a creative twist is added.” You don’t need a high-tech camera or even video editing software. All you need is your iPhone (and eventually, any smartphone). Now click, click, click, hold button, click and post. You’re done. You know, this whole Vine video process sounds ridiculously easy, doesn’t it? That’s because it is. Make sure your videos are funny and creative and showcase your logo, people and services. If you follow these guidelines, people will be more likely to view your stuff and look forward to more. And they’ll pay more attention to these than written tweets. Vine is a great way to spice up your Twitter feed and get you noticed! BSB BSB Contributing Editor Mark Claypool has more than 30 years of experience in the fields of workforce development, business/ education partnerships, apprenticeships and Web presence management. He is the CEO of Optima Automotive (www.optimaautomotive. com), which provides website design, development, SEO services and social media management services. Claypool’s work history includes stints at Metro Paint Supplies, VeriFacts Automotive, the National Auto Body Council (NABC), the I-CAR Education Foundation and SkillsUSA. He is the founder of Mentors At Work and co-founder of the Collision Industry Foundation. He served, on a volunteer basis, as the Skills-USA World Team Leader for the WorldSkills Championships from 2003 to 2011.
Circle 20 for Reader Service
20
April 2013 | BodyShop Business
Circle 21 for Reader Service
Technology
Focus Spraybooths Get Smart Accudraft’s SmartPad takes the thinking out of the spray application process by monitoring what the painter is doing and defining the type of paint that’s being sprayed. Complete with two different programs, the SmartPad can run either a solventbased or water-based paint process. Features like automatic pressure balance take care of changing filter conditions, and standby mode saves heat and electric costs if the painter has to step away from the job for a few minutes. When the painter returns, all systems come back on to full power. Universal programming allows the user to integrate a future waterborne add-on system into the SmartPad’s flash and cure process, eliminating the need for extra on/off switches, controls or complicated installations.
Optimum Control AFC Finishing Systems offers the most advanced finishing equipment controls available in the market today. Some features include 10inch TFT Siemens color touch screens; Siemens PLC control modules; programmable, user-defined settings; operator booth status displays including diagnostic and troubleshooting screens, filter loading status and preventative maintenance information; modem for remote troubleshooting; variable frequency drives for auto balance and economy mode; and data logging and trend reports. AFC control panels include
Advanced and Intuitive When talking about advanced spraybooth technology, the control panel is the most crucial component that’s often overlooked. While most manufacturers supply a basic, rudimentary electromechanical or PLC-based control panel, GFS engineers developed advanced and highly intuitive control systems with the ability to precisely manipulate air speed and temperature, as well as create pre-programmed cycles based on the unique properties of the coating being used. GFS controls are engineered to adapt to any change in coating technology, ensuring the paint booth is prepared for anything the coating companies can throw at it. To avoid making a panel that’s too difficult to operate, GFS designed its control panels to be extremely user-friendly. Basic operation of the booth can be controlled simply by depressing one of four buttons: stop, start, cure and flash.
Higher Efficiency, Lower Noise Garmat USA spraybooths now feature dual inlet centrifugal fans with airfoil backward curved blades. These fans’ improved design offers the highest efficiency of all centrifugal fan designs while boasting an even lower noise level. The static efficiency of an airfoil wheel versus a backward inclined wheel can easily exceed 10 percent. This benefit results in lower brake horsepower consumption and a reduction in sound levels of 2 to 6 dBA. This provides a safer environment for the painter and improves the airflow efficiencies, allowing for increased production capabilities. 22
April 2013 | BodyShop Business
a USB data port for transferring information to a personal computer and QR codes for instant access to operating and maintenance manuals. Plus, they’re ETL/UL listed to the 508a standard.
Circle 23 for Reader Service
»| Tech Focus |« Quick Cure and Excellent Finish Col-Met EZ Heat & Cure Air Makeup Units (AMUs) deliver heated and filtered air evenly throughout a spraybooth. Precision-controlled to minimize temperature variations, they effectively remove particulates from the air that can negatively affect the quality of the paint finish. AMUs allow for a booth system to be pressurized, which keeps the booth from taking air out of the building in which it resides and reduces energy costs. This also creates cleaner intake air because the air is filtered as it enters the AMU and
filtered again as it enters the booth. A pressurized system allows the user to control whether the booth has a positive or negative pressure and also gives them to heat air being drawn into the booth, which helps cure the finish quickly after painting.
Custom Size A-Frame Paint Booth offers affordable, easy to install and maintain spraybooths in several standard sizes. Fast delivery time and support is available if you need help with installation. Also offered are custom-sized booths and consultation on any project. Made in Texas by Texans.
Reduced Energy Costs Spray-Tech’s patented QADs waterborne drying system, a multi-tiered flash and baking system in the Junair 4 Series spraybooths, gives the painter the ability to easily program the flash and cure cycles based on the different types of product being applied. Primer, basecoat and clearcoat all have different cycle times, so the painter
can adjust the booth settings accordingly. By incorporating a full range of innovative features including T-5 high output lighting, the best “fit and finish” cabins in the industry, the latest in controller technology and the QADs air movement system as standard, the Junair 4-Series Booths will provide a shop with substantial reductions in energy costs as well as a refinishing environment unmatched by that of any other manufacturer. BSB Circle 24 for Reader Service
24
April 2013 | BodyShop Business
Circle 25 for Reader Service
Track Talk Car Enthusiasts, Fans Get Chance to Go Under the Hood with a NASCAR Champion April marks National Car Care Month – the perfect time for motorists everywhere to go under the hood and give their car the checkup it needs. As all automotive techni-
cians know, there’s no better way to keep a vehicle in tiptop performance, improve fuel economy and maximize horsepower than to perform regular motor oil changes.
Thanks to Mobil 1’s commitment to car care, one lucky motorist will have the opportunity to check the dipstick next month alongside one of NASCAR’s most popular drivers. From now through April 22, car enthusiasts and NASCAR fans everywhere can enter to win a chance to go under the hood with three-time NASCAR Sprint
What’s your favorite car in Tony Stewart’s classic collection? Visit the Mobil 1 Facebook page to cast your vote for your chance to go under the hood with the three-time NASCAR Sprint Cup Series Champion.
Cup Series Champion and driver of the No. 14 Mobil 1/Bass Pro Shops Chevrolet SS Tony Stewart in his personal garage. Stewart, who owns an extensive classic car collection, knows the importance of regular vehicle maintenance and oil changes. Via the “Under the Hood with Tony and Mobil 1” promotion, the NASCAR Champion, nicknamed “Smoke,” will get
some extra help with maintaining his classic fleet. Fans can enter to win the ultimate under the hood experience by visiting the Mobil 1 Facebook page to vote on their favorite classic car in Smoke’s collection – the 1955 Chevrolet Nomad, 1978 Pontiac Firebird Trans-Am, 1957 Chevrolet Bel Air or the 1967 Pontiac GTO. The winning fan will perform a Mobil 1 oil change alongside Stewart himself at the NASCAR driver’s private garage on May 7, 2013. Celebrate National Car Care Month today – cast your vote for your favorite classic car in Smoke’s collection and enter to win the ultimate under the hood experience, by visiting the Mobil 1 Facebook page at Facebook.com/Mobil1.
Follow NASCAR Performance on Twitter and Facebook www.twitter.com/NASCARauto ■ www.facebook.com/NASCARPerformance
Circle 27 for Reader Service
Tell Us What Articles You Want to See — and Win! BodyShop Business is planning its 15th Annual Reader’s Choice issue — an entire issue devoted to what you want to see! But we can’t do it without you! Fill out the form at www.bodyshopbusiness.com/readerschoice, or fax the below form to (330) 670-0874 by June 21, 2013. If one of your ideas is chosen, we’ll not only find someone to write the article you suggested, but we’ll credit you for the idea — and give you 50 bucks!
WIN
50!
$
Full name:__________________________________________________ Title or position: __________________________________ Shop name:__________________________________________________City, state: ______________________________________ Tel: ( __________) ____________________________ Email:________________________________________________________ Annual shop sales (this won’t be published) ✔ one:
___ Up to $249,999
___ $250,000-$349,999
___ $750,000-$1 million Address to send the $50 to if your idea is chosen:
___ $350,000-$749,999 ______
___ More than $1 million
________________________________________________________ ___________________________________ZIP __________________
If an industry expert offered to answer one question for you, what would your question be? (It must be collision repair-related) ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ Why is this question important to you? ________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________
On what topic would you like to see an article and why? I’d most like to see an article on
___________________________
because __________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ 28
April 2013 | BodyShop Business
Cycle Time “Why is cycle time so important? It seems the body shop industry has changed in that insurance companies’ No. 1 focus is now cycle time.” Question answered by: Hank Nunn
es, the collision repair industry continues to evolve, and cycle time is certainly a leading key performance indicator (KPI) for both collision repairers and insurers. While we all talk about cycle time, there is not a standard definition of cycle time in a collision repair shop.
Y — Cuu Thi, manager, Crenshaw Collision Center, Los Angeles, Calif.
Definition » BusinessDictionary.com defines cycle time as: The period required to complete one cycle of an operation; or to complete a function, job or task from start to finish. This definition points to the problem with the use of cycle time as a KPI in the collision repair industry. In collision repair, there are many components to cycle time. Cycle time for an insurance company is not the same as cycle time for the collision repairer. Measurement » Not only is there not a standard definition, but there also isn’t a standard measurement of cycle time in collision repair. While most measure “keys to keys,” or drop-off to delivery, others measure first customer contact to deliv-
ery. An insurer may measure the cycle from the initial report of the claim to final payment of the claim. Some measure the number of days the insured or claimant is in a rental car.
A Big Focus » So why do insurance companies focus on cycle time? The obvious answer is that they want to control their rental car or loss of use expense. Reducing the repair time for their insured or claimant reduces loss of use and rental expense. In addition, insurance is a competitive business. Just watch TV for awhile and you’ll see Flo, the Gecko, Mayhem and many others selling auto insurance. Insurers want high customer retention. They know that it’s much more expensive to find a new customer than to retain one. Insurers are aware that the time it takes to repair an insured vehicle is directly tied to the insured’s CSI score and retention rates. Low cycle time equals high CSI, so they focus on reducing cycle time. Another reason insurers focus on cycle time is “open claim liability.” www.bodyshopbusiness.com 29
READER’S CHOICE » Cycle Time The longer a claim is open, the more likely the insured or claimant will hire an attorney and increase their claim. Paying and closing claims quickly reduces open claim liability, providing additional motivation on the insurer’s part to push for reduced cycle time.
What’s In It for Me? » When the insurers began coming to collision repairers with demands to reduce cycle times, many repairers pushed back. “You want it faster? With those parts and all of your delays for supplement reinspection? You’ve gotta be nuts!” was the feeling many of them had. It took awhile, but most realized that cycle time reduction could be rewarding for them as well. If you can get repairs through your facility faster, you can move more repairs through the same facility…which means you can make more money! For the collision repairer, reduced cycle time equals increased sales equals more money. That’s a good thing! As noted before, cycle time is a key driver in the customer’s evaluation of repairer performance and overall CSI. Increased CSI should increase customer-driven repeat and referral business. Therefore, reducing cycle time translates to increased collision repairer profitability, CSI, and customer referrals and repeat business. Measure to Manage » If you’re not measuring cycle time now, begin immediately! Management systems include cycle time measurement tools. Make sure that you and your team enter accurate data into the system so that your cycle time reports are consistent. Don’t have a management system? Spreadsheets can be built to track cycle time. Start by building a tool to track repair from dropoff date to delivery date. You can track individual cycle time comCircle 30 for Reader Service
30
April 2013 | BodyShop Business
ponents. Not comfortable creating a spreadsheet? Work with your accountant; they live in a spreadsheet world. Discover your current cycle time, then find ways to improve that number! There are lots of articles and classes on the subject. If you do a great deal of work with one or two insurers, find out how they calculate cycle time and use the same dates for your customers so that you’re both measuring the same way. For example, if your largest insurer counts weekend days toward overall cycle time, you should count those days as well. That way, when you have discussions regarding cycle time improvement, you’re talking about the same number. Many insurers are now using rental car days, as supplied by the rental company, to calculate cycle time. In those cases, shops should maintain a strict watch on the reports generated by the rental company. For example, a customer drops their vehicle off on a Tuesday afternoon and leaves in a rental. The repairs are completed on Friday afternoon and the customer is called. The shop may view the cycle time as three days, Tuesday afternoon to Friday afternoon. But let’s say the customer decides to stay in the rental over the weekend, picking the car up the following Monday. In that case, the rental company-reported cycle time may be seven days, Tuesday through Monday. Yes, the industry is changing and yes, cycle time is a big focus of insurers. Cycle time should also be a focus of repairers, as understanding it and reducing it can result in additional profit and CSI. BSB Hank Nunn is a 37-year industry veteran of the collision repair industry and president of H W Nunn & Associates Inc., a collision industry training and consulting company. He may be reached at h_nunn@msn.com.
Circle 31 for Reader Service
Parts Procurement “What is the direction parts procurement is going, and why? Are third-party parts vendors the new way of ordering parts? Will we be forced to order parts online from a company like PartsTrader and not use our parts department?” Question answered by: Brad Desaulniers
What is the direction parts procurement is going, and why?
— Jim Patrick, collision center manager, Lang’s Chevrolet, Beavercreek, Ohio
Insurer-mandated parts procurement is certainly trending upwards. We can see it happening overseas in Europe and New Zealand and, even closer to home, in Canada with INTAC Insurance, the largest player in the Canadian market. I can also report that a number of other carriers in North America are seriously looking at ways to drive more transparency and competition into the parts market, and electronic procurement certainly seems to be the common thread.
Are third-party parts vendors the new way of ordering parts? We need to be careful here, as “thirdparty vendors” is a misleading term. No one is driving toward someone other than the body shop buying parts – that would seem foolish. But there are a number of service providers in the market delivering electronic ordering and fulfillment services as an intermediary for shops and vendors. Unless you’re willing to build the competitive procurement technology yourself, then yes, “thirdparty providers” will be a part of the equation. 32
April 2013 | BodyShop Business
Will we be forced to order parts online from a company like PartsTrader and not use our parts department? This is where I think a lot of confusion lies in the marketplace. You will always have your own parts ordering staff. Even with PartsTrader, the shop still does all the ordering and selects the suppliers it wants to use – even if you’re buying from yourself. None of the current technologies attempt to take over the ordering process for you, and I don’t think there is any scenario in which that will ever become the norm. Will you be forced to use some form of electronic ordering? I suspect the answer to this one is yes. If you’re a DRP, eventually you’ll need to use electronic ordering to meet DRP standards.
I read an article by SCRS saying that State Farm’s new parts ordering program has been successful in lowering the insurer’s costs but has done so by cutting repairers’ and vendors’ profits. Is this true? I think the article you’re referring to was written about the New Zealand/PartsTrader experience.
Circle 33 for Reader Service
READER’S CHOICE » Parts
Circle 34 for Reader Service
Even the folks from the New Zealand market admit they handled the introduction of PartsTrader poorly, and it cost them. There are a number of cost-saving features associated with electronic procurement. Done right, it reduces cycle time, expands access to alternative parts, and drives competition to be cost-conscious and innovative in delivering their products. Who reaps the financial benefits of these changes in the U.S. is still to be determined. As with any other major shift like this, there will be winners and losers at the end. My personal belief is that there will be far more winners than losers, as these technologies are great at leveling the playing field. So for all those shops and parts vendors that are struggling, access to new markets, better pricing and more innovative competition will be a win. For those who currently enjoy unfair (in my humble opinion) advantages in the business, a more transparent and competitive parts market will certainly be a new challenge to overcome.
Will this be rolled out nationally, and will other insurers do the same thing? Yes and yes. State Farm has made it absolutely clear they’ll be doing this on a national basis. With an 18.5 percent market share and 10,000 DRP shops, they’ll save, by our estimates, $500,000,000 a year. This is a major competitive advantage that every other carrier will have to address one way or another. With limited options at hand, there is no question that a significant number of other carriers will follow...soon. BSB Brad Desaulniers is president of WW BID Systems/PartsCheck Live. He writes a comprehensive blog on the subject of electronic parts procurement (https://partschecklive.wordpress.com) and is an industry-leading expert on the subject. He can be reached at braddes@partschecklive.com.
Circle 91 for Reader Service
Circle 35 for Reader Service
Plastic Repair “I repair classic cars to newer ones. With all the different kinds of plastics out there, how do I determine what kind I’m working on and the ideal method of repair?” Question answered by: Mitch Becker
lastic repair has evolved to match the changes and amount of plastics vehicle manufacturers are now using. The cost of plastic parts on many vehicles has led to improvements in procedures and equipment to meet the repair industry’s needs. With the addition of much better materials in rods, the industry now has better tools and information for plastic welding. Adhesive repair systems now have adhesion promoters that deliver a strong bond to ensure a durable repair. Both plastic repair and adhesive repair processes have changed to meet the challenge of making a
P — Rick Graves, owner, Graves Auto Body, Duluth, Minn.
lasting, durable and more flexible (when required) repair while keeping costs down. The cost of these parts has forced the industry to realize that to simply replace instead of repair is no longer a valid business decision. The use of combinations or blends of plastics in manufacturing has required technicians to learn to identify plastics and to use proper products and procedures. Failure to follow the most basic steps will lead to redos. Not following directions will also cause your reputation to take a hit in front of the customer.
Types » The types of plastics and types or severity of damage that can be repaired have also changed. Deciding what repair procedure to use is up to the person This bumper is pretty beat up, but it can be repaired with today’s advanced plastic repair technologies.
36
April 2013 | BodyShop Business
Circle 37 for Reader Service
READER’S CHOICE » Plastic Repair doing the repair. Is one procedure better than the other? That depends on the types of plastics being repaired. Each type of procedure depends on the training and experience of the person doing the repair. It comes down to preference. What are you comfortable with? The two types of repair addressed
here will be plastic welding and adhesive bonding. On many plastics, you have a choice as to which type of repair to perform. On others, such as SMC plastics, you’re limited in choice. You always have a choice of which product manufacturer to use. I won’t go through step-by-step
procedures as each company is different. But I will stress that you follow the instructions diligently. By failing to properly shape or clean, you’ll compromise other steps, and that will lead to failure. Training will help you avoid the pitfalls of repair failures. I-CAR PLA03 is an excellent source for procedures as well as company training from product manufacturers. State Farm’s Hi-Tech Toolbox has excellent videos on plastic repair procedures as well as the most common reasons for failures.
Adhesion Promoters » Adhesion promoters for adhesive repairs have reduced the issues long associated with the repair of plastics classified as polyolefin. New rods used in welding plastics have improved the adhesion on blends of plastics and polyolefin. Although solvent welding is still being practiced on older plastics on classic cars, the new systems are considerably better and more safe for technicians.
Two Categories » Plastics can be divided into two major categories: 1. Thermoset or thermosetting plastics. Once cooled and hardened, these plastics retain their shapes and cannot return to their original form. They’re hard and durable. Most repairs will involve an adhesive type process. 2. Thermoplastics. Less rigid than thermosets, thermoplastics can soften upon heating and return to their original form. They’re easily molded and extruded into films, fibers and packaging. Examples include polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC). First, you need to identify the composition or type of plastic being repaired. Most components have an ISO code stamped on the back. This code is put there for recycling purposes, but you can use it to identify what type of plastic you have for repair purposes. Then comes determining the plastic’s physical properties. Is the part Circle 38 for Reader Service
38
April 2013 | BodyShop Business
Circle 39 for Reader Service
READER’S CHOICE » Plastic Repair
Most plastic components have an ISO code like this one stamped on the back that will help you identify the type of plastic.
rigid, semi rigid or flexible? These properties are fairly simple to determine just by trying to bend the plastic.
Two Methods » There are two common ways to repair plastics today:
40
April 2013 | BodyShop Business
1. Heat: Using either a hot iron (airless) or hot air system. This includes nitrogen welding. Other sources can be laser, frequency or ultrasonic. 2. Adhesive: Using adhesives to bond to existing plastic. Solvent welding is a form similar to using adhesive. Both procedures have reinforcement available to either melt or bond into the plastic to give a strong, long lasting repair. Plastic welders have been around for a number of years. The airless kind uses a hot iron to melt and shape plastic. A hot air welder works by passing compressed air over a heating element and heating the air to around 345ºC (650ºF) to melt the base plastic and filler rod/ribbon together. If a reinforcement is required on the backside to strengthen the plastic, it will be
Circle 40 for Reader Service
melted in to the base plastic and filler rod. This type of welder does not use a flat shoe or feeder tubetype tip. A V-groove is cut into the part, the rod is laid into the Vgroove and the two are melted together. Whenever using this type of welder, it’s important to have airflow over the element at all times, no matter if it’s preheating, welding or cooling. A nitrogen hot air welder uses compressed nitrogen gas to eliminate oxygen from the weld area. The nitrogen acts as a shielding gas and allows for a contaminantfree weld with less smoke, which creates a stronger weld. This type of welder can also switch to compressed air so it doesn’t waste the nitrogen when preheating or cooling down the heating element. A fusion weld is made when the welding rod and plastic melt and
Circle 41 for Reader Service
READER’S CHOICE » Plastic Repair mix together. This type of weld can only be done on thermoplastics. Thermoplastics, such as polypropylene/ thermoplastic polyolefin (PP/TPO), which is used to make most bumper covers today, work well with this type of welder.
Weld Kit » Your plastic welding kit will include all of the components you need, including the heat gun and the various welding rods for the previously mentioned plastics. If you can’t identify the plastic, clean an area that is not visible to the finish side and find a rod that applies closest to the plastic being repaired. Heat the rod to the original plastic to check adhesion. Many kits now have a universal rod that will work with most plastics. The weld kits come with a chart that tells you what temperature to use for the different types of welds
42
April 2013 | BodyShop Business
and plastics. Reference your setting before you begin to tack weld, and set the heat gun accordingly. Shops that want to attempt these types of systems and train their employees should look into the cost of the machines and training availability. Many shops say it’s one of the best investments they ever made.
Adhesive Repair Systems » Adhesive repair systems do not require heat to bond. The adhesives bond to the plastics by linking to the repair area surfaces. Depending on the type of repair being done, a different adhesive may be used on the backside versus the front. This gives strength while maintaining the flexibility the plastic requires. In the past, adhesives were limited due to the “slippery” nature of some polyolefin plastics. Many
Circle 42 for Reader Service
systems now offer adhesion promoters to help the repair material link to base plastic. Many technicians try to use a generic adhesion promoter with specific brands, but this will most likely cause a failure. A successful adhesion process is dependent on very specific procedures being followed, from the prep of the part to be repaired to the grinding and shaping of the repair area. Each step is critical to success. A technician who doesn’t follow the procedures will run into complications, if not failures. Once a technician understands how to use these products, it becomes relatively easy to duplicate results. Adhesive systems offer the widest variety of plastic repairs. From PUR to SMC plastic, the procedures are fairly similar. Adhesion promoters may not be required on all as the
Circle 43 for Reader Service
READER’S CHOICE » Plastic Repair adhesive can bond to some plastics without them. Although adhesive plastic repair doesn’t have the same initial investment cost as heat repair, the cost of materials must be factored in. Both heat and adhesive plastic repair require a certain amount of training and practice to be efficient. A shop
must decide if one or the other or both are an option for them. To not repair is not an option.
Classic Cars » On classic cars, the ISO code may not be there or may not be visible. There are some physical tests that can be done to help with identification. One is the sand test.
䡲 TPO — Sands in chunks, melts like butter with high-speed grinders, feels like wax and gets stringy when hot. 䡲 Thermoset — Flexible or rigid, sands powdery, does not melt with high-speed grinders and easy to repair. 䡲 SMC — Sheet-molded compound; Corvettes have it and looks like fiberglass with white powder. 䡲 Polypropylene — RV water tanks, dirt bike fenders. New plastic rods make the repair of these plastics feasible.
Hot Staples » Another new weapon you can add to the plastic repair arsenal is hot staple kits. These staples melt into plastic to give good strength and hold the form well. They’re easy to use and inexpensive. This tool offers a variety of uses.
Charts » Depending on the type of system you’re going to use, many companies offer charts on their websites with suggestions for materials and their proper use. If you use adhesive repair products, identify plastics to be sure all the steps and materials such as adhesion promoters are used during the repair. Wall charts provided by certain companies become a necessity to ensure the proper use of materials. So the question is, which system should you use? Sit down with your technicians and ask them. They’re the ones who will be using the materials. Have them take some training to make sure the repairs they’re doing are top quality. The investment will be worth it. Some shops have found it pays to be involved in both adhesive plastic repair and heat repair. BSB Mitch Becker is a technical instructor for ABRA Auto Body & Glass. Contact him at (763) 585-6411 or mbecker@abraauto.com. Circle 44 for Reader Service
44
April 2013 | BodyShop Business
Circle 45 for Reader Service
Parts Inventory: What to Do with Leftovers “We have an inventory of parts we ordered and never returned to the vendor for whatever reason. What percentage of depreciation (from price when originally purchased) is calculated into our selling of the part to the customer? Or do we just sell it for whatever we feel is reasonable?” Question answered by: Hank Nunn
his question seems simple at first glance, but the answer is far from that. I have several follow-up questions: How are these parts shown on the financial statements? How many parts are there, and what was their cost? Can any be returned? Let’s assume that, over a period of years, we’ve accumulated an inventory of parts that we did not return for a variety of reasons. We paid for the parts on account or by check when they were received and absorbed them into our direct cost of parts. We’ll estimate the value of the parts at $10,000, which is not an uncommon scenario. The result of this sloppy recordkeeping is much more significant than just the clutter of a $10,000 pile of parts. The first impact is an understatement of parts gross profit on the profit and loss statement. I assume that the parts have never been inventoried and are not shown on the balance sheet as inventory. The result is an understatement of
T — Loretta Tanzo, body shop secretary
46
April 2013 | BodyShop Business
current assets, which can affect the financial condition of the business and increase the cost to borrow money. It also reflects poorly on business valuation, resulting in a reduction of owner’s equity in both cash flow and asset valuation appraisals of the company. Share this information with the owner. This is important!
Taxes » This understatement of inventory also has significant tax implications. Personally, I was educated on this topic by an IRS auditor a few years ago. That was an expensive lesson! Penalties and interest exceeded the tax liability. The issue is an understatement of income. We probably recognized the expense when we bought the part, but we didn’t adjust our inventory to reflect the added parts. The IRS views that as income and, in an audit, they’ll happily charge taxes, penalties and interest. In this scenario, depreciation does not apply as we never recognized the asset.
Circle 47 for Reader Service
READER’S CHOICE » Parts Inventory What to Do » So, what should we do about it? First, the owner should meet with their CPA to review the issue. I’m answering this question based on assumptions. I’ve run into this before, and it’s not uncommon. But I’m not familiar with the particulars of your case and I’m not a CPA/controller. Get the CPA/controller involved! As a general guideline, count the inventory and put it on the balance sheet at your cost. Going by our assumptions, this will result in a onetime increase in inventory of $10,000, which will result in a $10,000 reduction in cost of goods sold – and $10,000 higher net taxable income and appropriate taxes. The good news is you can elect to correct and take three years to recognize the income (the business can get that option if you volunteer the information to the IRS when you file the return; otherwise, if they catch it in an audit, things get a lot more expensive). You cannot depreciate the inventory like a fixed asset. You could look at the $10,000 “found” inventory to determine whether or not it’s still current/worth what the shop paid for it. If it turns out the inventory is obsolete and of no value in the marketplace, you could increase it by the
48
April 2013 | BodyShop Business
calculated current wholesale value (what you would pay for it), resulting in a smaller impact. If you’ve counted $10,000 of inventory at cost but you’ve analyzed the value and know it’s only worth $5,000 at the pricing you currently pay, then you would increase the inventory by $5,000. When you sell the items, re-enter the cost and reduce the inventory. So, this is a big issue! Bring it to the owner’s attention and get the CPA involved. Like I said, this is not uncommon! Many collision repair balance sheets do not reflect inventory or workin-process (WIP), resulting in erroneous gross profit on the P&L and understated current assets on the balance sheet. So, fix it...now! Check with the CPA, but you would probably be wise to make the correction in the 2012 financials to avoid higher taxes in 2013.
Paint & Materials » Since you have this issue with parts, you might consider doing a full inventory of the paint and associated materials you have in inventory as well. Those items are usually understated on the balance sheet, if they show up at all. You might as well make sure WIP is
Circle 48 for Reader Service
accounted for. Once these items are corrected, it’s easy to maintain going forward. Collision shops should not have much inventory. Aside from the paint materials and associated products, the hard parts should all be considered WIP.
Management System » Going forward, if you don’t have one, get a computerized management system and enter every part, invoice and credit to avoid having inventory build up again over time. Review parts handling and institute a “mirror matching” process so that incorrect or damaged parts are caught before they’re accepted. Don’t just sign invoices and accept parts! If a part is missing, wrong or damaged, ask the vendor to reissue the invoice less the bad or missing part to minimize the hassle of dealing with credits and double entry into the management system. Work with the CPA. Fix this. Then make sure it doesn’t come back to haunt the business in the future! BSB Hank Nunn is a 37-year industry veteran of the collision repair industry and president of H W Nunn & Associates Inc., a collision industry training and consulting company. He may be reached at h_nunn@msn.com.
Circle 49 for Reader Service
Post-Repair Inspections “What are some things you look for in postrepair inspections? As a tech, I’m always looking to put out a better product. Also, I’m interested in getting into the field of auto appraisal, either insurance or classic cars.” Question answered by: Barrett Smith
often joke that being a postrepair inspector is like being a “car whisperer.” As we inspect a vehicle, we allow it to more or less tell us its story. I’ll walk you through the basics of an average post-repair inspection (PRI) as performed by Auto Damage Experts (ADE) to allow you to get a glimpse of what we do and what we look for.
I —Joe Palumbo, body technician, Haggerty Buick GMC, Villa Park, Ill.
1. The first thing we do is interview the vehicle owner to determine if there are any issues or concerns regarding the vehicle’s appearance and operation such as: squeaks, rattles, wind noise, water leaks, etc.; drivability issues (pulling, vibrations, etc.); or functional issues (radio, cooling, heater, windows, etc.) 2. The next thing we do is review the estimate/invoice for the performed repair to match the vehicle’s ID number and to understand the nature and severity of the sustained damages, including: 䡲 Where was the damage? 䡲 How invasive were the damages and ensuing repair? 䡲 Frame and/or structural damages?
50
April 2013 | BodyShop Business
䡲 What was the chosen methodology (repair, replacement, etc.)? 䡲 What was the repairer required to do? 3. Next, if and when possible, we approach the vehicle from a distance (30 to 40 feet) while it’s outside under daylight conditions. This allows you to walk around the vehicle, comparing the color match of the damaged and repaired/blended panels to their adjacent original finish. We’ll make notes as needed regarding color match, side-cast and hue such as: “Excellent Color Match and Application”; “Poor Blend at RF door to R Rear Door”; “Substandard; Color Differs Significantly at RF Door to Fender”; and “Excessive Texture.” Much like an expert buyer might look at the vehicle at the time of trade-in or purchase, we’ll also check the condition of the vehicle for unrelated prior damages and finish. The only difference is that we have information regarding the known repair, whereas a buyer might not have the luxury of such information.
Circle 51 for Reader Service
READER’S CHOICE » Post-Repair Inspection 4. As we approach the vehicle, we’ll review the list of items replaced or repaired and start looking more closely at each addressed panel’s applied paint finish for issues such as: 䡲 Texture (excessive orange peel, too slick, “cellulite” and/or waviness) 䡲 Buffing issues (e.g. swirl marks) or insufficiently buffed/polished areas 䡲 Fall-out and foreign materials (dirt) 䡲 Runs, sags, “fisheyes,” etc. 䡲 Paint overspray on paint, trim, hardware or in jambs, etc. 䡲 Tape-lines at trim, inner jambs, etc. 䡲 Body repair indicators under paint (i.e. swollen sand-scratches, “bull’s eyes,” grinder marks, deformations, waviness etc.
52
April 2013 | BodyShop Business
5. We look for any obvious indicators of misaligned panels at the once-damaged and repaired panels as compared to the original, undamaged panels: misaligned, moveable panel issues (doors, hood, deck lid, etc.); uneven gaps between panels; misaligned trim and hardware (i.e. moldings, lights, etc.) 6. Depending on the nature of the damages and repair methodology, the vehicle is generally inspected inside and out, including being raised on a lift for an underside inspection where we again refer to the listed repairs and visually inspect each item that was to be repaired, replaced and/or repainted. While doing so, we look for: 䡲 Factory appearing finish (e.g. Elpo-Primers)
Circle 52 for Reader Service
䡲 Seam sealers (correct color, application-texture and appearance) 䡲 Sound deadening 䡲 Pinch-weld clamp marks from anchoring 䡲 Chain pull related marks/ damage 䡲 Painted bumper reinforcements 䡲 Parts identification, inventory/ supplier labels visible 䡲 Missing, damaged and/or mismatched clips and fasteners 䡲 Paint overspray in or under vehicle 䡲 Paint edges at edges of moldings/trim (which should have been removed) 䡲 Paint tape lines in jambs, on panels (e.g. rear edge of hood), etc. 䡲 Mismatching adhesives for reused nameplates, emblems and moldings
Circle 53 for Reader Service
READER’S CHOICE » Post-Repair Inspection 䡲 Repaired panel’s inner areas repaired and painted to appear as OEM 䡲 Comparison trim/moldings placement from one side to the other 䡲 Unaddressed welds (burns, remaining MIG/MAG wire, soot marks, etc.)
䡲 Body repair residue inside the vehicle and anything else that doesn’t appear original. As issues are revealed, they’re added to a list of remaining flaws, defects and issues which, in the opinion of the expert, are seen to prevent the vehicle from being
restored to pre-accident condition in safety, appearance, function and value. When dealing with issues such as determining diminished value (DV), we must assess the vehicle’s overall condition, including its preloss condition (interior, exterior, trim, glass, tires, etc.) as well as its post-repair condition (fit, finish and function), to determine how well the vehicle will present itself to a potential buyer. This information is necessary to help determine the vehicle’s pre-loss condition and value as compared to its post-repair condition and value. Should a dispute arise over diminished value and/or repair-related issues, and the expert is called upon to support their findings and opinions, such vehicle documentation will be required. Keeping and maintaining clear and concise photographs and notes that clearly depict and describe any remaining flaws, defects and/or other issues that have a direct and detrimental effect on the vehicle’s value is essential. Through ample photographs and notes, the subject vehicle will more or less speak for itself. The inspector/expert merely becomes a translator…or, as I mentioned earlier, a “car whisperer.” BSB Barrett Smith, AAM, grew up in a family owned and operated collision business with locations in both Washington and Alaska. Smith has managed dealership collision centers and owned and operated collision repair facilities in Tampa Bay, Fla., including an award-winning shop for 15 years (1994 to 2008). He’s also the founder and president of Auto Damage Experts, Inc., who, along with his vice president of operations and eldest son David Smith, has been providing automotive inspection and expert legal services nationwide since 1997. Smith and his wife have four children, including twin 9-year-old boys. He can be reached at (813) 657-6705 or barrett@autodamageexperts.com.
Circle 54 for Reader Service
54
April 2013 | BodyShop Business
Circle 55 for Reader Service
TECHNICAL
On
Spot
By John D. Lyman, Sr.
Vehicles today and the advanced metals they’re made of are making a stronger and stronger case for owning an inverter spot welder. Soon, it could be a necessary tool for all shops seeking to do OEM-recommended repairs.
n the collision repair industry, there are many tools out there that make our lives more simple, easy and productive. This is surely the case with the DC resistance inverter spot welder, also known as a Squeeze Type Resistance Spot Welder (STRSW). But forget about making our lives easier – this welder is becoming a must-have considering all of the advanced metals being introduced in vehicles today. Why? Because it produces a highly concentrated, precisely controlled current, which is best suited for welding base metals such as aluminum and many different steel alloys used on today’s modern vehicles. By producing heat more efficiently, it decreases weld times as much as one-third and reduces the Heat Affect Zone (HAZ), or the portion of the base metal that has not been melted but has had its mechanical properties altered. This is critical as too much heat can weaken or destroy the structural integrity of these advanced metals – and that can lead to someone dying after
I
A Squeeze Type Resistance Spot Welder produces heat more efficiently and reduces the Heat Affect Zone – critical for the advanced metals of today.
56
April 2013 | BodyShop Business
Circle 57 for Reader Service
TECHNICAL » Spot On Grade
Alloy Content
Heat Treatment
Typical Applications
Mild steel, bake hardened, solid solution strengthened
Low
Fully annealed/ dead soft
Body panels (closures, floor pan, dash panel, etc.)
High strength low alloy
Low
Fully annealed/ dead soft
Rails, structural members
Strengthened with fine particles and small grain size
Dual phase
Medium (manganese, silicon, molybdenum, chromium)
Fully annealed/ partially hardened
Rails, structural members
15-50% of structure is “hard” martensite
Ultra high strength steel (martensitic, boron)
Low
Fully hardened
Rocker reinforcements, 100% of structure is door beams, bumper beams “hard” martensite
TRIP (Transformation Induced Plasticity) Steel
High (manganese, phosphorus, silicon, aluminum)
Fully annealed/ partially hardened
TBD
Note: GM does not endorse repair of door impact beams. Dual phase steels up to DP 800 may be sectioned with a sleeve or backer plate.
they drive off in their compromised vehicle and get in an another accident. Some technical experts are going as far as saying that in five years, any shop that doesn’t have this welder will be out of business. The above information from GM specifies the various types of metals
58
April 2013 | BodyShop Business
that can benefit from the resistance spot welding process. GM and practically all the other automakers are pushing for the use of inverter resistance spot welder technology for proper, recommended sheet metal repairs.
Old and New » Many STRSW
Circle 58 for Reader Service
Comments
Complex microstructure for high strength and ductility
welders use alternating current (AC). In alternating current, the flow of electricity periodically reverses direction 60 times a second (also known as 60 hertz). A transformer-based power source supplies an AC secondary current to the welding tips. This type of welder is still available and serves a purpose in the collision repair industry. New technology in the welding
Circle 59 for Reader Service
TECHNICAL » Spot On Combination of Information, Skills and Tools Critical to Good Welding have long said that information is key to doing repairs right, but I recently discovered that there’s more to it than that, namely skills. For example, take a technician who’s a fantastic welder. If he doesn’t know what steels he’s working on or the procedures required, he’s
I
not aware of the damage he could cause by the same welding he does every day. His welds may look good, but appearances are deceiving. The same great welder brings a wire feed welder to the vehicle he’s repairing. He has spent a great deal of time and
Circle 60 for Reader Service
60
April 2013 | BodyShop Business
effort to make sure all panels, weld joints, etc., fit correctly. He has prepped the vehicle meticulously. He then turns on the MIG welder and completes his first plug weld or starts his continuous weld on the joint. The weld doesn’t sound right or look right. He stops and adjusts the machine and starts welding again or does another plug weld. It’s still not right, so another adjustment is made. Now it sounds and looks better. Sound familiar? The machine was not set right and welds were being made. We don’t know if the welder is making welds of the proper strength because there was no destructive test done prior to welding on the vehicle. Where in the manufacturers’ instructions or even welder manufacturers’ instructions do they list how many practice welds are allowed on the vehicle being repaired? Training also reminds us of the basics – the things we forget or take for granted. You can do something every day and still forget a basic principle. Managers should ask their technicians, “How many of you set up the welder or do practice welds off the vehicle?” This is not to say there aren’t any good welders who know their stuff and can follow through every time. The majority of the industry falls into this category. But can everyone’s welds pass the I-CAR welding qualifications on the first try? How about the second or even third weld? After a refresher on setting up the welder to the proper gauge of steel and guidance and some practice, most technicians will pass. Many technicians admit they learn a lot by taking that test, saying, “It makes me think about my welds more.” I have to admit, you appreciate honesty like that. If your technicians can pass the test on the first try, then congratulations. You’ve proven why customers should be bringing vehicles to your shop. If they pass the test after a refresher and some practice, then congratulations on reinforcing the importance of quality welds and investing in the time and effort to improve not just your shop but the entire industry’s quality of workmanship. Don’t just look at your shop but the industry as a whole.
Circle 61 for Reader Service
TECHNICAL » Spot On We want to maintain and always improve our people because they’re worth it. With the evolution of the automobile and steels being used today, this investment in training is also a necessity. What about a new employee? When do we learn how they weld? Do they know how to set up a welder? Thirty days down the road is way too long to find out that a
shop has an issue. If they’ve passed the I-CAR WCS03 test, at least you know they have the skills needed. This doesn’t guarantee perfect welds or a perfect tech, but it’s a start. Your shop’s reputation is based on the quality you produce. What if your taxman decided he could not afford the training or just decided he didn’t need any? Maybe he sends his
Circle 62 for Reader Service
62
April 2013 | BodyShop Business
employees to classes but not himself. He now has to blindly trust that his people know what they’re doing. Would you be confident in him? If he surrounds himself with the best people, then the issue is minor. What happens when people leave and go to other companies? How do you know who to hire? How do you know you made a good hire? The same applies for our industry. The large majority of our technicians are awesome at their jobs. To keep them awesome requires training – not just on how to do their job but why a procedure must be followed. A technician who understands why we must follow a procedure will, and can, make a decision in his, the shop’s and the customer’s best interest. That’s what an awesome technician does. There is still another piece of the puzzle: the proper tools. A taxman needs a computer or calculator to do the job correctly. But the calculator can’t just add and subtract; we need percentages and other functions to get the numbers right. He needs a computer to be proficient. I realize tools are expensive. It’s tough for a shop to stay up-to-date. A shop that doesn’t have an STRSW machine is losing time and money, but to buy one takes money. It’s a vicious cycle, and now the cycle changes even more. What if there are vehicles that can’t be MIG welded because the steels are so strong but extremely thin? What if metal is so heat sensitive that MIG with steel wire may not be an option? When the vehicle is repaired, a specific type of weld may be required. It could be an STRSW weld, or maybe silicon bronze or MIG brazing is required. What if your shop isn’t equipped to do the repair? In some cases, not only do technicians need to be trained and/or refreshed, but managers and owners need to consider what needs to be done and what’s needed in the future. Keeping up can cost a shop a lot of money in training and equipment, and getting ahead may be even more time consuming. Taking even the smallest things for granted and/or falling behind is the worst position to be in. – Mitch Becker, technical instructor, ABRA Auto Body & Glass
Circle 63 for Reader Service
TECHNICAL » Spot On What to Consider When Buying a Spot Welder 1. Duty cycle 2. Is it suitable for steels such as zinccoated and boron alloyed? 3. Weld bonding capability 4. Recording welds for reference 5. Vehicle manufacturer specs 6. How many outlets
7. Maintenance and costs 8. Training 9. Testing welds and destructive testing 10. Benefits in production to shop and technician 11. Manual vs. automated settings 12. Safety
field has led to inverter power sources that utilize high frequency AC voltage to supply a secondary direct current (DC). In DC, the flow of electricity goes in only one direction. Besides reducing the HAZ, another advantage the inverter welder has over a traditional welder is that it’s compact in size and consumes less power than standard AC welders.
Three Phase vs. Single Phase » Some welding machine manufacturers produce single-phase inverter spot welding units; however, most operate on a three-phase power source, which is cheaper to use in the long run. A single-phase power supply is standard in just about everyone’s home or small business today. It consists of a 220- to 240-volt power
Some technical experts are saying that in five years, any shop that
doesn’t have an inverter spot welder will be out of business. line and delivers enough energy to operate larger electrical items such as a whole house air conditioner or electric range. When the 220- to 240volt line reaches the circuit breaker (fuse) box, it gets split into two legs. Each side of this leg is 110 to 120 volts and is used for the rest of the lower draw items, such as lights, receptacles, etc. Some smaller body shops may also fit into this category. Many MIG welders, plasma cutters and both AC single-sided panel welders as well as AC resistance spot welders are of the 220 to 240 single-phase type. Circle 64 for Reader Service
64
April 2013 | BodyShop Business
Circle 65 for Reader Service
TECHNICAL » Spot On Three-phase power provides three alternating currents, which are three separate electric services that are uniformly separated in phase angle. That is, the points in
time at which each leg of alternating current reaches a maximum voltage are separated by one-third of the time in a full cycle. This means that the total amount of power supplied by all three alternating currents remains constant. The three phases share a common neutral leg in most installations. To consumers of electricity, consistent power delivery is the major benefit. The design of three-phase motors, with one set of windings for each phase, is highly efficient and allows them to draw significantly less current than the equivalent single-phase motor. For power transmission, singlephase power needs two units to function, while three phase requires
a single unit. Therefore, threephase power can transmit alternating currents by using three copper wires in a single wire unit as compared to single-phase power, which requires six wires for transmission of an equivalent amount of power. This reduces the number of copper wires needed and thus reduces cost. Below is a formula based on both a single- and threephase 5-hp motor: Single Phase
One consideration for making a good spot weld is the pressure applied to the work piece by the tip electrodes.
A three-phase power supply would use 40 percent less amperage.
1 hp = 756 watts 5 hp = 3,730 watts 3,730 watts at 230 volts = 17 amps
Three Phase 3,730 watts = 3730(watts) / (207(v) x 1.73) or 3730 / 358.11 = 10.4 amps
»| Product Spotlight |« rethane Supply Company’s 6056 Nitrogen Plastic Welding System is the latest technology in plastic repair. It creates very strong repairs to bumpers, headlights and other automotive plastics. The repairs are very quick and inexpensive as well. Check out the many benefits of the Nitrogen Welding System.
U
䡲 Strength: Stronger than any two-part epoxy or hot air weld. Plastics are melted together with no oxidation to form a permanent weld. 䡲 Speed: Complete repairs in a fraction of the time of two-part epoxies. Can weld 4” to 6” per minute. Then finish, prime and paint. 䡲 Versatility: Do repairs that are not possible with two-part epoxies. Mounting tabs thick or thin, grille bars, high stress areas, flexible tabs and fender liners. Not just for automobile plastics. 䡲 Cost Savings: An average 6” repair costs less than $2.00. You pay that much just for the mixing tips with the twopart epoxy. The same epoxy repair can cost over $30.00. 䡲 Ease: Repairs are simple to do. Your techs already have the skill set, get them the tools to do the job. 䡲 Keep Profits in Your Shop: No need to replace bumpers, headlights and other plastic parts. Keep the labor dollars in house. 䡲 Blend in the Panel: Repair the damage to the bumper and blend the color in the panel. Avoid the risks and costs involved in blending into the undamaged fenders. Circle 66 for Reader Service
66
April 2013 | BodyShop Business
Product
Spotlight Audatex Estimating Accurate Estimates the First Time, Every Time udatex Estimating is a next-generation estimating platform that improves productivity and drives faster, more accurate repairs. Now, insurers, collision repair professionals and independent appraisers can all collaborate using a single estimating application. The result is reduced cycle times, increased accuracy and streamlined communication. Key features and benefits include: 䡲 Powerful Estimating Database — The most comprehensive and widely accepted database in the collision repair market. 䡲 3D Intelligent Graphics — Unparalleled 3D graphical insight into parts and repairs translates into improved estimating accuracy and faster cycles. 䡲 Ongoing Data Updates — Stay current with weekly equipment part price up-
A
dates, overlap calculations, paint decode functions and more. 䡲 Easy Navigation — A straightforward design and intuitive fields allow quick processing. Estimating has never been easier with interactive graphics, a parts-search utility, the ability to add attachments and more. 䡲 Streamlined Communication — Exchange information and share estimates quickly and efficiently. 䡲 Estimating Organization — Get your business on track with a wide range of reports covering new estimates, labor, parts lists, work orders and more. 䡲 Multiple Training Options — Training options include everything from quick reference guides and selfpaced online training to webinars and instructor-led training.
Audatex 3D Intelligent Graphics offer 360-degree rotation, unlimited zoom, color-coded parts and substrate materials identification, making it fast and easy to create an accurate estimate.
See video: http://pages.audatex.us/xpert_estimating
800-237-4968
Circle 67 for Reader Service
www.bodyshopbusiness.com 67
TECHNICAL » Spot On Getting Three-Phase Power » In order to get a three-phase power supply from your electricity provider, there must be a threephase power source outside your shop. You can check with your local power company to find out how to go about this. If the power company has to run three-phase a
long distance to your shop, it can be costly. If there’s an existing three-phase setup because other businesses in the area also use it, the cost to hook up will be cheaper. Another factor to consider is, does your other shop equipment, such as the air compressor or other welding machines, utilize a three-phase power
A smaller Heat Affect Zone means less chance of weakening the metal.
supply? If so, it would make even better sense to go with three phase. If your inverter resistance welder is the only three-phase piece of equipment you have, there is an-
Too much heat can weaken or destroy the structural integrity of these advanced metals – and that can lead to someone’s death. other alternative: you can purchase a “static phase converter” unit from around $350 to $500, depending on the welder’s input/output amperage rating. These converters take single phase and convert it to three phase.
Cost » Inverter spot welders can run from $1,200 to $22,000 depending on what you’re looking for. They range from a no-frills economical unit to a much larger Circle 68 for Reader Service
68
April 2013 | BodyShop Business
Circle 69 for Reader Service
TECHNICAL » Spot On Three Considerations in Making a Good Spot Weld 1. The pressure applied to the work piece by the tip electrodes 2. The amount of electric current that passes through the work piece 3. The length of time that the current flows through the work piece
welder with all the bells and whistles. Some are even multi-function machines that can do several different tasks such as MIG, TIG, pulling dents and shrinking metal. Most of the inverter resistance welders come with several different types of welding tongs for different applications. Some even come with an overhead option, allowing the welder attachments to be suspend-
Circle 70 for Reader Service
70
April 2013 | BodyShop Business
ed from a huge rack that drapes across several work bays. This type of system frees up a lot of floor space and keeps the equipment out of the way. With this system, the welding units can slide from bay to bay, making them more versatile. When choosing a welder, you have to consider the amount of money budgeted for welding
equipment, as well as analyze your shop needs.
Conclusion » The case for purchasing an inverter resistance welder has been made. It’s important to remember that when you purchase three-phase, high voltage equipment like this, you should have it installed and wired by a qualified, registered electrician. Never work with high voltage electric wires yourself. BSB John D. Lyman, Sr. has been the collision repair instructor at the Forbes Road Career & Technology Center in Monroeville, Pa., since 1991. He has worked in the collision repair industry since 1974, is ASE- and PPG-certified and holds a master’s degree in education. He can be reached at lyman67@netscape.net.
Circle 92 for Reader Service
Circle 71 for Reader Service
»| Industry Update |«
Legislative Maryland Legislator Introduces Crash Parts Procurement Legislation aryland Delegate Mark N. Fisher (R-27B) has introduced H.B. 1375 regarding replacement parts for damaged vehicles. The bill has been referred to the House Committee on Economic Matters.
M
This bill includes language that prohibits an adjuster, appraiser, insurance producer or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for parts procurement or other necessary
ASA Exec continued from pg. 17 “If there are areas where improvement needs to be made or change needs to be done, we’re going to be in the room to have those conversations, and to me and Ron and our team, that is far more important than sending out a press release saying we have dispelled the use of PartsTrader,” he said. “We can certainly do that, and I’m sure a lot of people would probably want to hear
72
April 2013 | BodyShop Business
material for vehicle repair. The legislation requires an insurer to authorize repairs to be made using genuine crash parts, prohibiting an insurer from requiring repairs to be made using aftermarket crash parts during the five years after the vehicle is manufactured. The insured may consent to the use of aftermarket crash parts in writing at the time of repair. This Maryland legislation is one of the first attempts to address recent insurer initiatives relative to parts procurement.
that, but that doesn’t get us any closer to bridging any potential gaps we have an opportunity to bridge. If we were posturing ourselves that way, we certainly wouldn’t be allowed in the room to have those conversations and express ourselves in a professional manner. “At the end of the day, the one thing everyone who doesn’t like PartsTrader has is a choice: yes, I want to participate, or no, I don’t. Nobody is forcing them to do that.”
Circle 72 for Reader Service
Circle 122 for Reader Service »
»| Industry Update |«
Rhode Island Senator Introduces Insurance Unfair Claims Practices Legislation hode Island state Sen. Maryellen Goodwin (D-1) recently introduced R.I. Senate Bill 465 regarding insurance unfair claims practices. The bill amends current Rhode Island law identifying as an unfair claims practice a motor vehicle’s designation as a total loss when the cost to rebuild or reconstruct the vehicle to its pre-accident condition is less than 75 percent of fair market value. Under the bill, any of the following acts by an insurer constitutes an unfair claims practice: 䡲 Designating a motor vehicle a total loss if the cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is less than 75 percent of the “fair market value” of the motor vehicle immediately preceding the time it was damaged. (i) For the purposes of this subdivision, “fair market value” means the retail value of a motor vehicle as set forth in a current edition of a nationally recognized compilation of retail values commonly used by the automotive industry to establish values of motor vehicles. (ii) Nothing herein shall be construed to require a vehicle be deemed a total loss if the total cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is greater than 75 percent of the fair market value of the motor vehicle immediately preceding the time it was damaged. (iii) Nothing herein shall prohibit an insurance company from agreeing to deem a vehicle a total loss at the vehicle owner’s request and with the vehicle owner’s express written
R
« Circle 123 for Reader Service
authorization, if the cost to rebuild or reconstruct the motor vehicle to its pre-accident condition is less than 75 per-
cent of the “fair market value” of the motor vehicle immediately preceding the time it was damaged.
Circle 73 for Reader Service
www.bodyshopbusiness.com 73
»| Industry Update |«
Aftermarket Parts Bill Introduced in Vermont ermont State Rep. Bill Botzow (D-1) has introduced House Bill 362, which would regulate the use of aftermarket parts in auto-
V
mobile repairs covered by insurance. The bill has been referred to Vermont’s House Committee on Commerce and Economic Development.
Circle 74 for Reader Service
74
April 2013 | BodyShop Business
The language of the bill includes the following provisions: 䡲 No insurer shall require the use of aftermarket parts in the repair of an automobile unless the aftermarket part is at least equal in like, kind and quality to the original part in terms of fit, quality and performance. An insurer that requires the use of aftermarket parts shall consider and be liable for the cost of any modifications that may become necessary when making a repair. 䡲 All aftermarket parts manufactured after Jan. 1, 2014, shall carry sufficient permanent identification so as to identify their manufacturer. Such identification shall be accessible to the extent possible after installation. 䡲 Aftermarket parts may not be required by an insurer in the repair of automobiles placed in service during the two years immediately preceding the claim report and which have 30,000 or fewer miles recorded on the odometer. 䡲 An insurer shall identify clearly on the repair estimate all aftermarket parts installed on a vehicle, if any. If aftermarket parts are installed, the insurer shall disclose to the claimant in writing, either on the estimate or on a separate document attached to the estimate, the following information in bold-faced, capitalized font no smaller than 12-point type: “This estimate has been prepared based on the use of non-original manufacturer parts. Parts used in the repair of your vehicle by other than the original manufacturer, also known as aftermarket parts, are required to be at least equal in like, kind and quality in terms of fit, quality and performance to the original manufacturer parts they are replacing.”
Circle 75 for Reader Service
»| Industry Update |«
National California Body Shop Creates How-To Guide on Creating Yelp Reviews a-les Auto Body has recently posted a screencast to its website that walks clients through the process of creating a Yelp review. The Sunnyvale and Cupertino, Calif., auto body repair and collision specialists serve the San Jose and Sunnyvale areas, specializing in foreign and domestic vehicles. As a certified green investment shop that has been in business for 35 years, Da-les Auto Body has amassed many clients. Although many of these clients want to write reviews and post them to Yelp, the shop found that they’re hampered by a lack of understanding on how to do it. The shop’s new screencast will aid them in this process. “While we have gained a strong customer base across all demographics and ages, we have a significant portion of our client base that is a bit older and unfamiliar with how to use Yelp,” said a Da-Les Auto Body spokesperson. “This new screencast walks them through the process of how to make a Yelp account and Yelp review, and is posted on our website’s blog page so that it is easy to find.”
D
Montana Collision Repairers Discuss Parts Procurement at Spring Meeting he Montana Collision Repair Specialists (MCRS) had their spring meeting on March 3 in Helena with 105 attendees. Repairers from the Idaho Autobody Craftsmen Association and Utah, Colorado and Florida were also in attendance, as were dealership parts managers and counterpeople. The highlight of the day was a seminar titled, “Parts Procurement – Best Practices.” It was presented by wellknown industry speaker and consultant Mike Anderson, whose opening words were, “We will thrive – not just survive.” Anderson documented the changes and challenges in today’s marketplace and offered solutions to repairers to “be the best in your area.” Anderson also facilitated a roundtable discussion at the MCRS meeting luncheon that consisted of eight Montana shop owners pondering Anderson’s question of, “What’s keeping you up at night?” Finally, MCRS lobbyist Drew Geiger brought the industry up to date on the Montana state legislature activities at an interactive breakfast meeting, highlighting current legislation that might affect the industry.
T
Circle 76 for Reader Service
»| Industry Update |«
Consolidation ABRA Acquires Two Corporate Centers and Two Franchises in Four States n four separate transactions, ABRA Auto Body & Glass announced the acquisition of two corporate repair centers and the opening of two franchise repair centers in four states. The latest deals increase the number of ABRA repair centers nationally to 95 company-owned locations and 46 independently-owned franchises for a total of 141 in 16 states. “There is no doubt we are in
I
78
April 2013 | BodyShop Business
accelerated growth mode and are dedicated to following through on our long-term expansion and acquisition plan,” said Duane Rouse, president and CEO of ABRA. “We are focused on the future and fully expect to increase our business opportunities while expanding our national footprint in new and existing markets.” Added Tim Adelmann, ABRA’s executive vice president of busi-
Circle 78 for Reader Service
ness development, “Not only are we gaining momentum, but it is full steam ahead. We are working hard to increase our presence in the markets we serve and are focused on an operational excellence philosophy that gives us a competitive edge.” The four newly acquired repair centers are located in Omaha, Neb.; Wilmington, N.C.; Lebanon, Tenn.; and Clearfield, Utah.
»| Industry Update |« B&R Body Shops Opens Sixth Location B&R Body Shops, a Charlotte, N.C.-based multiple shop operator, has announced the opening of its sixth location in the metro Charlotte market. The store, a modern, 17,000square-foot facility, is located at 5700 West WT Harris Blvd. near Northlake Mall and will operate as B&R Body Shop-Northlake. The location offers easy access from the new developments surrounding the mall area and reaching toward Lake Norman. “There has been substantial development in this area over the past few years as evidenced by the growth in specialty retail, as
well as the numerous dealerships that have moved up here between Charlotte and the lake,” said Tommy Morgan, owner/operator of B&R Body Shops. “We have been seeking a suitable fa-
cility on this side of the city for some time and are pleased we have this opportunity to expand our service capability to continue to meet the needs of our customers and insurance partners.”
Global Collision Opens Ninth Location Global Collision, a Colorado-based MSO, has recently acquired its ninth location. Platinum Collision of Castle Rock will now operate under the name Global Collision Castle Rock. The new addition is located at 2759 N. Liggett Road in Castle Rock, Colo. “Castle Rock is a flourishing community on the vital I-25 corridor,” said Liza Milijasevic, marketing director for Global Collision. “Like our eight other Colorado locations, Global Collision Castle Rock will now offer Enterprise car rental on-site and a new drive-through paint refinish department applying environmentally friendly waterborne paints. We look forward to getting to know our new neighbors.” Global Collision holds manufacturer certifications from Nissan, Volkswagen, Porsche, Aston Martin, Bentley, Jaguar and Land Rover. It is the sole collision repair company to have received the state of Colorado’s Environmental Leadership Seal.
Circle 79 for Reader Service
www.bodyshopbusiness.com 79
»| Industry Update |«
Personnel Industry Veteran Mike Spagnola Joins SEMA Staff SEMA has hired industry veteran Mike Spagnola to fill the newly created position of VP, OEM & product development programs, effective immediately. Spagnola brings with him 40 years of specialty auto parts experience, including more than 20 years of product development and project vehicle work. With a focus on heightening SEMA services to help members develop products quickly and efficiently, Spagnola will collaborate with the SEMA OEM and vehicle technology departments while serving as a resource and a liaison for members and automakers. Mike Spagnola Spagnola’s experience includes retail, distribution and manufacturing. Most recently, he served as president for Street Scene Equipment, where he managed the company’s day-to-day business for 16 years. His project vehicles have been featured on the covers of more than 50 enthusiast magazines and honored with more than a dozen design awards from various OEMs. Spagnola has also completed six years of service on the SEMA Board of Directors, a position from which he resigned effective with his new role as a staff member. “I’ve personally witnessed the industry, particularly the product development process, change significantly over the years,” said Spagnola. “Through the use of new technology and partnerships, manufacturers can develop products faster, more accurately and less expensively than ever before. Programs such as SEMA’s Technology Transfer, Rapid Prototyping and Vehicle Measuring Sessions can all be enhanced to help our member companies make and sell more products. I look forward to developing tools and services to add to these programs and to educating members about how they work.” Spagnola will oversee the new SEMA Product Development Center located adjacent to the SEMA headquarters in Diamond Bar, Calif. The building has a history of serving as a vehicle technology center, giving SEMA the opportunity to offer these services without having to start at ground-zero. Circle 80 for Reader Service
80
April 2013 | BodyShop Business
Circle 93 for Reader Service
»| Industry Update |« Douglas Irish Named President of VeriFacts Automotive eriFacts Automotive has announced that Douglas Irish has been promoted to president. In his new role, Irish will maintain his current responsibilities for everyday operations, product planning and development as well as expanding opportunities into new markets. He will also move to a more visible role as the company’s industry point of contact. “Doug has proven to be a valued associate and has a deep understanding of the industry and VeriFacts’ role in that industry,” said Farzam Afshar, VeriFacts Automotive CEO and co-founder. “He has the unique perspective as a former technician, shop owner and manager along with 20 years of experience on the insurance side of the business, which, we believe, will reinforce VeriFacts’ position as the market leader for independent collision repair verification. As VeriFacts Automotive expands our business, we believe Doug’s experience and people skills will broaden our company’s visibility in the marketplace with insurers, repairers and manufacturers.” During introductions at the “Fix It Right, Fix It Smart” Symposium, Mark Olson, VeriFacts COO, introduced Irish saying, “We have a surprise today for everyone and even Doug does not know this, I would like to introduce the new President of VeriFacts Automotive, Doug Irish.” “I am humbled by the trust Farzam and Mark have shown in giving me this responsibility and opportunity,” said Irish. “VeriFacts is a great company to work for, and I am looking forward to this new challenge and working with a great team.”
V
Circle 81 for Reader Service
Circle 94 for Reader Service
www.bodyshopbusiness.com 81
»| Industry Update |«
Corporate Assured Performance Partners with Sherwin-Williams A-Plus Network herwin-Williams Automotive Finishes has announced that the Assured Performance Network has become the newest contributor program to its A-Plus Network. This partnership will offer member shops in the A-Plus program access to the Assured Performance rebate rewards program from carmakers including General Motors, Nissan, Chrysler and other OEMs. The 100% Write Rebate Rewards Program provides a rebate to body shops when they repair a vehicle using 100 percent OEM collision repair parts as defined by the program. According to Assured Performance, the program is designed to provide an incentive for the shop “to provide the highest level of fit, finish, durability, safety and the owner’s sustained vehicle value by using new OEM parts.” The program also includes a “Certificate of Authenticity” for consumers verifying that 100 percent OEM parts were used to repair their vehicle. As an option, if the vehicle damage is already reported to CARFAX, participating shops can report the repair information, which Assured Performance says will help in restoring their vehicle’s value. “We are very excited to announce our partnership with Assured Performance,” said Troy Neuerburg, Sherwin-Williams manager of marketing business services. “Assured Performance offers a wide range of benefits to our member shops, and we are very excited that this partnership allows us to offer our members access to the OEM parts rebate program. We think it is a great value to our members and will help drive higher profitability to their bottom line.” Added Assured Performance CEO Scott Biggs, “The 100% Write Rebate Rewards Program is the first of its kind in the industry and is valid with most of the leading automotive brands. We are proud to offer this program to SherwinWilliams’ A-Plus Network of collision centers.”
S
Circle 95 for Reader Service
Circle 82 for Reader Service
82
April 2013 | BodyShop Business
»| Industry Update |«
Web-Est to Distribute PDR-Software Web-Est has recently established a marketing agreement to distribute PDR-Software. PDR-Software, a new estimating platform for paintless dent repair professionals, was developed by Community Data Group LLC. PDR-Software is the first program to include OEM part pricing and R&I labor times for exterior vehicle panels trim, liners and more. In addition, the platform is the only paintless dent repair estimating software in the industry that aggregates dent rates from its subscriber base and displays the average historical “community rate” for a similar PDR service. The identity and location of the users, however, remain completely anonymous, thus allowing paintless dent repair professionals to stay competitive within the marketplace. “Web-Est is excited to bring this product to market," said Eric Seidel, president and CEO of Web-Est LLC. “For the last couple of years, many of our WebEst subscribers who are paintless dent technicians asked if we had something they could use at a lower price. Now, Web-Est can offer them this product at about half [the price] of our full-blown software.” PDR-Software runs on a different database than Web-Est collision estimating software. The product is available for a free 14-day trial by visiting www.PDR-Software.com and is currently being used by paintless dent repair professionals in retail and wholesale organizations.
Circle 83 for Reader Service
Circle 96 for Reader Service
www.bodyshopbusiness.com 83
»| Industry Update |«
PPG Announces 2012 Platinum Distributor of the Year entucky-based Gipe Automotive Inc. has been named the PPG 2012 Platinum Distributor of the Year. The announcement was made by Bob Wenzinger, director of the PPG Platinum Distributor program, during the awards banquet at the annual PPG Platinum Distributor Conference held Feb. 14-17, at the Westin Kierland Resort & Spa in Scotts- From left to right: Greg DeCamp, PPG general manager, sales and marketing, Automotive Refinish dale, Ariz. USCA; Jay Eberlin, refinish sales manager, Gipe Automotive; Tom Gipe, president, Gipe Automotive; Wenzinger and Greg Alex Gipe, business development director, Gipe Automotive; Greg Benckart, PPG vice president, Benckart, vice president, Automotive Refinish Americas; Bob Wenzinger, director, PPG Platinum Distributor program. PPG Automotive Refinish Americas, presented the award to and its customers. We are proud to Gipe Automotive president Tom recognize the Gipe team tonight.” Gipe and key members of his manAdded Gipe, “To be named Platagement team. inum Distributor of the Year is quite “It is always a pleasure to recoga surprise and very humbling. I’m nize the Platinum Distributor of the accepting the award on behalf of Year, and this year is no exception,” our entire company. I’m happy for said Wenzinger. “Gipe Automotive all the people at Gipe Automotive. has been an outstanding, customer They’re top quality, great to work service-oriented PPG distributor for with and the reason we’ve received years and deserves to be honored this honor. We all focus on the sucfor its growth and success and the cess of our customers; that’s the key contribution it has made to support- to our success. I thank PPG for recing the PPG brand, our products ognizing Gipe Automotive.”
K
Circle 97 for Reader Service
84
April 2013 | BodyShop Business
Circle 84 for Reader Service
Product
Showcase Easily Paint Plastic The combination of 9331 Metalux Plastic Prep Solution and 1111 Metalux Aerosol Plastic Adhesion Promoter makes painting plastic fast and easy. The plastic prep solution aids in the adhesion of primer or topcoats over difficult bare plastics, while the aerosol offers excellent adhesion to automotive plastic, including TPO. ChemSpec USA, Inc. www.chemspecpaint.com Circle 150 for Reader Service
Speedy Paint Gun Washer The FastTrack paint gun washer is designed to accelerate the paint gun cleaning process. Made to work with Herkules Sparkle Clean Blast aerosol can cleaner, the FastTrack’s nozzle is pushed up with the paint gun. The Blast’s cleaner is then released down into the gun’s paint channel.
Lower Air Humidity The WNA AMD-035 Membrane Dryer has four-stage pre-filtration that’s critical to the longevity and function of the membrane dryer. It has a flow rating of 35 SCFM and maximum working pressure of 150 psi. The dryer lowers the humidity level by harmlessly venting it into the surrounding atmosphere. A flexible input hose assembly eliminates the hazards of damage from vibrations in piped compressed air systems and allows the Membrane Dryer itself to be installed in any position. Walmec North America www.walmecna.com Circle 154 for Reader Service
Herkules Equipment Corporation www.herkules.us Circle 151 for Reader Service
Hem Door Skins The Turbo-X-Tools DH Door Hemming Drill Attachment and DH Pneumatic Door Hemming Tool produce accurate, tight and clean hems without blemishing the door skin. The attachment inserts directly into the chuck of a minimum 14.4-volt cordless or maximum 7amp A/C drill. The DH Pneumatic Hemming Tool is compatible with most shop air supplies. Malco Tools www.malcotools.com Circle 152 for Reader Service
Ensure Perfect Welding The DF-BC200 Butt Welding Clamps provide a simple and efficient way to ensure the perfect welded butt joint. The pack of four clamps holds two panels of varying thicknesses edge to edge with almost no gap. Dent Fix www.dentfix.com Circle 153 for Reader Service
Reduce Sanding Time EverGold Finishing Putty spreads and levels to a smooth finish, reducing sanding time to remove heavy texture. It easily sands with 180-grit sandpaper, eliminating the need for coarse grits that can cause sand scratch swelling. It contains ZNX-7, which quickly provides superior adhesion to galvanized steel and aluminum, reducing the risk of pulling back featheredge. Evercoat www.evercoat.com Circle 155 for Reader Service
www.bodyshopbusiness.com 85
»| Classifieds |«
Quality Solutions for the Collision Industry
1.800.529.2640 W W W . K AY C O S P R AY B O O T H S . C O M
BodyShop Business Classified Call Tom Staab today at 330-670-1234 ext. 224
MIG / TIG / PLASMA / SPOT * Fixed & Flex-Neck Torches * Tips / Nozzles / Caps / Diffusers
* Wire / Rods / Tungsten * Helmets / Gloves / Safety Gear
The Body Shop Specialists Toll-Free 1-866-568-3170
WELDINGDIRECT.COM
»| Classifieds |« Yuma, AZ Auto Body Shop FOR SALE: $499,000 or $150,000 lease option! Great location in Commercial Center 7,720 sq. ft. of building • 29,982 sq. ft. of land office: 928-344-8300 or cell: 928-920-7520 Don Woodke at don.combrokers@aol.com
Body Shop Inventory & Web Software by Rossknecht Software www.rossknecht.com
A Windows® inventory system for Body Shops that also salvage vehicles or have new/used parts to sell – vehicle and parts inventory, invoicing, reports, instant sales totals, bar-code labels, digital pictures, electronic catalog of body parts. NEW: Put your inventory on your Website included. No monthly fees. $895 complete. Free Demo CD. bpsales@rossknecht.com phone 303-884-5315
MarkiNgpeNdepot.coM Collision Shops, Towing, Auction Sites, Dealers, Recyclers, OEMs Tow Pro $2.50 Autowriter $3.50 Posca $3.50 Bopagla $2.00 Unipaint $3.86 MPD-15 $1.30 Volume Discounts!
BodyShop Business Classified Help wanted • Business for sale Equipment for sale • Software... and so much more! Call Tom Staab today at 330-670-1234 ext. 224
• Original Equipment Wheels In Stock • Limited Lifetime Guarantee • 1000s of Wheels In Stock • Affordable Prices
We ship from eight different locations: Dallas, Houston, San Antonio, Los Angeles, Philadelphia, San Francisco, Chicago, Miami
Alloy Wheel Remanufacturing
Call 888-906-9370 or online at
markingpendepot.com
Order your Wheels at:
www.newwheel.com or 800-486-0931
The
Shop Jim Pease Director of Body Shop Operations Montrose Collision Center 䡲 Fairlawn, Ohio
Is basketball your favorite sport? I like to watch it because that was one sport I was never good at. I admire it more because I can’t even dribble a basketball. I was a football player, starting at quarterback at Parma High School. I played a lot of baseball as a pitcher, too. But I couldn’t play basketball.
What’s your favorite sports team? The Cleveland Cavs. I’ve been a fan for more than 20 years.
Do you hate LeBron James like seemingly everyone else in Cleveland? I was really upset just like everybody else when he left. Who didn’t like LeBron James? He was awesome and great for the town. But every man is in charge of his own destiny. The way he left wasn’t proper, but I still feel like he’s a great ballplayer and I’m still a fan of his, so if he came back, I would welcome him. I think that anybody who says they wouldn’t welcome him back would become a fan of his again when he came back. The guy’s just very gifted.
Is LeBron James your favorite player in the NBA? Yes. Kyrie Irving is great on the Cavs, no doubt, but he needs more talent around him. But you can’t take anything away from LeBron; he’s just a great player.
Have you been to any Cavs games this year? Yes, about half a dozen.
The Cavs have been a pretty bad team over the last several years, but you never seem to hear about it. Why do you think that is? Probably because the Cavs games are so entertaining. Basketball in general is entertaining. The NBA is so loaded with talent, I think people feel like it’s just not possible for the Cavs to be that good without their own superstars.
88
April 2013 | BodyShop Business
Do you currently play in any recreational leagues? I used to play flag football and softball, but it has been probably five years since I did that.
It sounds like you’re pretty competitive. How does the collision repair world satisfy your competitive spirit? I think if you talk to anybody on the other side of this wall, they’ll tell you the No. 1 thing with me is that I don’t do well with the word “no” or “can’t.” As long as we exhaust all of our resources, I’m okay with that, but I’m not going to give up right now. If we open a box and find out we have the wrong headlight, how do we resolve this now rather than wait till tomorrow? What’s our solution today?
What are your feelings on change? A lot of people don’t like change. I, however, love it. I’m constantly trying to move forward. I feel like if we’re not moving forward, then we’re going backward. The business will run right over us if we don’t stay three to four steps ahead of what everyone else is doing. When I read articles in your magazine, I’m hoping that I’m already where you want me to be and not the guy reading it and saying, ‘Man, maybe I should start doing these things.’ BSB
Circle 89 for Reader Service
Circle 90 for Reader Service