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October 2012//Vol. 31 No. 10
www.bodyshopbusiness.com
Small Shop Survival Single-store independents are finding there’s strength in numbers when it comes to surviving and thriving in today’s business environment.
Show Issue
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Inside
October October 2012
Vol. 31 No. 10
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ON THE COVER Small Shop Survival Realizing that pointing fingers and doing things the same old way doesn’t cut it anymore, some shops are banding together in networks, finding strength in numbers.
FEATURES
34 In the Thick of It TECHNICAL
Today’s advanced vehicles use steels of varying thicknesses. A welding test has to reflect this to ensure a technician has the skills to weld these cars’ advanced structures.
44 Hail Horror
INSURANCE RELATIONS Do you truly have an insurance “partner?” After working through the worst hailstorm we had ever seen, we discovered that one insurer didn’t live up to that label.
52 A Sure Bet
SHOW PREVIEW The SEMA Show is back with a bigger and better Collision Repair & Refinish section and RDE educational sessions.
SHOP TALK Editor’s Notes
8 16 Web Presence Management 112 Publisher’s Perspective
My first SEMA Show experience is one I’ll never forget.
Is Google+ a plus for your business?
BODYSHOP BUSINESS (ISSN 0730-7241) (October 2012, Volume 31, Number 10): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2012 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
Parts is parts...or is it?
DEPARTMENTS Guess the Car ....................................................................................4 Industry Update ..............................................................................12 Maintenance Tips ............................................................................20 NASCAR Performance ......................................................................22 Product Showcase..........................................................................107
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Guess
Eek! I won?
the Car
SOLVED!
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 Oct. 31.
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She’s my sis!
*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.
#114 See the November issue for winner of Guess the Car #114.
Eek-won-ox = (Chevrolet) Equinox
!
WINNER #113 Tim Potter, painter, Redline Collision Center, Pompano Beach, Fla.
Sore end toe = (Kia) Sorento
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Editor’s
Notes
Publisher
S. Scott Shriber, ext. 229 (sshriber@babcox.com) Editor
See You at SEMA ’ll never forget my first SEMA Show experience. Someone had tried to prepare me by saying, “Imagine the biggest trade show you’ve ever been to...then multiply that by 100! It’s that big!” Still, when I showed up, the size and scale blew my mind.
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I remember walking through the tire section and feeling like I had just stepped into an ultra-exclusive, high-end nightclub. The bass was pumping, the lights were turned low, and tall, voluptuous women were approaching me left and right (where they usually run screaming in the opposite direction). Indeed, that trip was my first to Las Vegas ever! Up to that point, the basis for most of my knowledge of that town was the infamous book written by Hunter Thompson, “Fear and Loathing in Las Vegas.” So of course I halfexpected to see animals doing acrobatic stunts on trapezes.
While I didn’t quite see that, I did see people getting tattoos of tire treads on the show floor. And the cars...oh my. Every single one I passed, I found myself daydreaming about the same thing: me jumping in behind the wheel, tearing out of the show with a stylish squeal of the tires and heading into the sunset. The growth of the Collision Repair & Refinish section at SEMA and the Repairer Driven Education seminars offered by the Society of Collision Repair Specialists has been encouraging to me. In fact, with all that’s being offered this year, including a discussion on State Farm’s controversial parts bidding program and a “Game Changers – Innovation Forum,” I think that any collision repairers who don’t go will miss out on staying in touch with the very information they need to grow their businesses in today’s ultra competitive and changing market. Check out our special SEMA Show preview section on pgs. 52-60 to see what else is going on. And hopefully I’ll see you there!
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, John D. Lyman Sr., Hank Nunn, Carl Wilson Graphic Designer
Lisa DiPaolo, ext. 281 (ldipaolo@babcox.com) Advertising Services
Kelly McAleese, ext. 284 (kmcaleese@babcox.com) Director of Circulation
Pat Robinson, ext. 276 (probinson@babcox.com) Director of eMedia & 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 Web site: bodyshopbusiness.com Corporate
Bill Babcox, President Gregory Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Scheetz, Controller A limited number of complimentary subscriptions are available to those who qualify. Call (330) 670-1234, ext. 288, or fax us at (330) 6705335. Paid subscriptions are available for nonqualified subscribers at: U.S.: $69 for one year. Canada/Mexico: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via air mail: $129 for one year. Payable in advance in U.S. funds. Mail payment to BodyShop Business, P.O. Box 75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.
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Industry
Update Large Number of Ohio Repairers Turn Out for
ASA Meeting on PartsTrader oughly 100 Northeastern Ohio collision repairers showed up Sept. 18 at the Crowne Plaza Hotel in Independence for the first of two meetings the Automotive Service Association (ASA) held in the state to discuss the latest developments in
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State Farm’s rollout of the PartsTrader parts procurement program. Another meeting was held in the Cincinnati area on Sept. 19.
Comments from the Crowd » For the most part, the crowd displayed the same skepticism and pessimism
about the parts bidding platform that other repairers have expressed across the U.S., although there was at least one shop owner who seemed undecided so far as to her feelings on PartsTrader. “I have been taking everything I have heard from repairers [on Part-
sTrader] with a grain of salt, because State Farm has been very good to us and I trust George Avery,” she said. “That’s why I came to this meeting: to find out what this is all about.” Another attendee who owns multiple shops expressed his dislike for the program but wasn’t ready to jump off Select Service. “It stinks,” he said. “But State Farm represents 24 percent of our business, so we have to figure out how to make this work.” He also speculated that maybe State Farm is doing this to further scale back its number of Select Service shops, and “if 5,000 more shops drop off, they get what they want.” Most of the repairers in the room, however, expressed some of the more popular sentiments heard ever since PartsTrader was first introduced to the industry. Continued on pg. 62 ASA Collision Division Manager Denise Caspersen addressed each of the major points of contention repairers have about State Farm’s parts bidding program. Circle 127 for Reader Service »
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»| Industry Update |«
State Farm to Expand
Parts Pilot to Chicago tate Farm has announced that it is expanding its electronic parts ordering pilot to Chicago on Sept. 17, but the application will not be actively used by repairers until December 2012. All 450 Select Service shops in the Chicago metro area will be included in the pilot. “The Chicago market will allow us to scale the program and the tech-
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nology in a larger metropolitan area,” said State Farm spokesperson Dick Luedke. The Alliance of Automotive Service Providers of Illinois (AASPI) is trying to organize a meeting to discuss the possible ramifications of such a program. “We’re hoping we can get dealers to carry flyers [about the meeting]
to all Chicago shops, rather than just AASPI members,” said AASPI. “Hopefully we can get a buzz up and a meeting, and also have SCRS Executive Director Aaron Schulenburg come and tell the same story he’s told in every other meeting.” In a statement released industry-wide, the Auto Body Association of Connecticut
called the parts program a “wolf in sheep’s clothing” and that the only two entities that will profit from it are State Farm and PartsTrader. State Farm just released a bulletin to its Select Service shops to answer the most commonly asked questions among shops and to clear up what it believes are “inaccuracies.”
Virginia Body Shop Owner’s Good Deed Gets Him on ‘The Ellen DeGeneres Show’ ll Richard Henegar, Jr., wanted to do was help Jordan Addison out after the gay college student’s car was vandalized several times. But he got so much more than that after Ellen DeGeneres, an American stand-up comedian, actress and host of the syndicated talk show “The Ellen DeGeneres Show,” found out about how Henegar and his staff at Quality Auto Paint & Body in Roanoke, Va., restored Addison’s car and decided to invite the pair to Hollywood to be on her show. Three days after a news clip about Henegar’s good deed aired, DeGeneres called and invited him and Addison out to Los Angeles. The show aired on Monday, Sept. 10. Traveling to Los Angeles on Monday, Sept. 3, a week before the episode actually aired, was a whirlwind trip for both Henegar and Addison, and they were back in Roanoke by Wednesday. After having Henegar and Addison tell their story to the audience, including that homophobic slurs
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and the word “die” were carved into the car and Addison was forced to drive it around for months before Henegar fixed it because of a tight budget, Ellen presented each of
Henegar (left) and Addison each received a $25,000 check.
them with a $25,000 check sponsored by Cover Girl. Henegar says he will put that money towards new equipment for his shop. Ever since the story first hit the news, Henegar has received an overflow of positive attention worldwide. He’s still sorting through floods of emails and Facebook “likes” from those who have been touched by his story. He hopes that his actions will
inspire others to do “good things for good people.” He never thought his actions would have generated such an outpouring of support from people around the world. “I want to spread the message that bullying is unacceptable, and that discrimination of any kind isn’t cool,” he said. “The responses that we’ve gotten from the world have been incredible. It felt good helping [Addison], but everyone’s reactions have been the best part. It sounds cliché, but it just goes to show that one person really can make a difference.”
CORRECTION BodyShop Business offers its sincerest apologies to Valspar Automotive for committing an error in their ad on pgs. 18-19 of the September 2012 issue. We regret the error and encourage everyone to visit them at their booth (23513) in the Racing & Performance section of the SEMA Show.
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Web Presence
Management
By Mark Claypool
Is Google+ a Plus
For Your Business? ne of the most frequent questions I get these days is, “What’s this Google+ thing I’m hearing about?” or “Should my business have a Google+ page?” I’ve been paying attention to Google+ for more than a year, watching it carefully to see how it evolves and grows and reading dozens of blogs about it. The consensus many social media professionals have, including myself, is that Google+ is a force to be reckoned with. It’s early, it’s cutting edge…and you want to be on that leading edge with a Google+ account for your business.
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What Is Google+? » Google+ is Google’s attempt to break into the social network arena. It’s similar to both Facebook and Twitter in many ways, but also unique in that it has usability that the others don’t. It’s not likely to replace either Facebook or Twitter; there’s room for all in social media land. The competition is actually going to make each of them better because they’ll have to adapt, evolve, innovate or die. I believe they’ll all do that, and not only survive but do well. Google just happens to believe they’ll do it better, and they have the bully pulpit of the world’s largest search engine to back that up.
Circles and Sparks » Rather than “Likes,” “Fans” or “Followers,” Google+ has “Circles.” Circles allow you to group friends in different areas and label them as high school friends, work acquaintances, family, businesses or whatever. It’s a unique and easy way to communicate to whomever you want, and perhaps more importantly, to not have some people see what may be meant only for others. Google+ also has what is known as “Sparks,” or things that interest you that you set up in your profile. Google+ will automatically push content to you based on those interests. Each interest area gets its own Spark designation and gives you links to articles, photos and videos related to your interests. It’s a feature that regular users rave about. Google+ has a video chat feature called “Hangouts” that allows you to do video calls to people in your Circles. There is also “Huddles,” an online chat feature much like one you may have used with AOL, Skype or ICQ. The big difference is that it can be a group chat where all in a particular Circle can join. There are Android-based cell phone apps for this, too.
Ridiculous Growth » Facebook now has just short of one billion users, of which
Getting started on Google+ is as easy as clicking on the “+You” in the upper left corner of the Google search page and following the steps from there.
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»| Web Presence|« more than 550 million are active daily via their cell phones. Believe it or not, about 81 percent of Facebook’s subscribers are from outside the U.S. and Canada. That stat amazed me. Twitter has more than 200 million subscribers, with 100 million of them being active users who log in at least once per day. Google+ is expected to hit 400 million users by the end of 2012. Unlike Facebook, the majority of Google+ users are from the U.S. But total users is only part of the story. It initially took Facebook 852 days to reach 10 million users (that’s 2.3 years). It took Twitter 780 days to reach that mark. It took Google+ only 16 days to reach 10 million users!
Website Rankings » Does participation in Google+ enhance your website’s rankings? The answer isn’t as clear as you might want at this point, but the fact is that it certainly doesn’t hurt at the present time. It may help your Google rankings in the future. But for now, Google+ alone doesn’t equal enhanced rankings. However, if you have strong social media participation with quality content, especially on Google+, and you have many customer reviews, especially on Google+ Local, it’s likely that you’ll enhance and defend your ranking positions in the future. That seems to be the direction Google’s algorithm updates are headed. May as well get a head start, right? Creating a Google+ Account » Creating a Google+ account is easy. You must first have a Gmail email account, and everything else evolves from there (and can be used for your website’s Google Analytics account, too). You simply open up a Google search
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page, where you’ll see “+You” in the upper left corner. Click on that and follow the steps from there. For more information on setting up a Google+ page, go to the following link: http://www.google.com/+/ business/.
Adapt or Die » Remember when I said that Facebook, Twitter and Google+ are going to have to adapt, evolve, innovate or die? The same can be said for all of us and our businesses, mine included. Do you have that mindset? You better! As such, you need a Google+ business page. In next month’s column, we’ll cover Google+ Local, which is another key way to adapt and evolve. Don’t miss it! BSB Contributing Editor Mark Claypool has 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, search engine optimization (SEO) services and Social Media Management services. He’s also the Director of Business Development for Metro Paint Supplies in Chicago. Claypool’s work history includes VP of VeriFacts Automotive, founder of Mentors At Work (now a division of VeriFacts), executive director of the I-CAR Education Foundation and the National Auto Body Council (NABC), co-founder of the Collision Industry Foundation and national director of development for SkillsUSA. Claypool served, on a volunteer basis, as the SkillsUSA World Team Leader for the WorldSkills Championships.
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Maintenance
Tips
Frame Machines Lubricate all bushings and bearings where accessible.
1 2 3 4 5 6
Keep machine clean by removing all dirt and debris around the work area.
Always follow the manufacturer’s maintenance recommendations as outlined in the owner’s manual. Regularly check for damaged electrical or hydraulic lines.
Oil the pump so that everything inside it stays lubricated. If this is not done, the pump will dry out and not last as long.
Regularly inspect the hydraulic pumps and rams in the pulling towers. If you use wedges for fastening, you’ll reduce stripped nuts and bolt replacement costs. Information courtesy of Car-O-Liner, Chief Automotive Technologies, CJJ, Inc. and Wedge Clamp.
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Track Talk NASCAR Performance Partners Give Pros & Fans Multiple Chances to Win Champion’s Week Prizes NASCAR Sprint Cup Series Champion’s Week™ has quickly become the hottest ticket of the season for diehard NASCAR fans and now, thanks to several NASCAR Performance partners, some lucky fans – and automotive professionals – will get to experience the week-long celebration VIP-style. Nov. 28 to Dec. 1, 2012, NASCAR devotees can once again expect a star-studded and entertainment-packed week in Las Vegas, as the top-12 drivers celebrate the culmination of the 2012 season. You could join them to
2012
NASCAR Race Schedules
NASCAR Sprint Cup Series
AAA Texas 500 Phoenix 500 (K) Ford 400
Nov. 4 Nov. 11 Nov 18
experience it all – all you have to do is enter to win! Grand prize winners plus their guests of each promotion listed below will receive a coveted trip to Las Vegas for the
Lap™. In addition, winners will receive tickets to the 2012 NASCAR Sprint Cup Series Awards™, which will take place at Wynn Las Vegas on Friday, Nov. 30, concluding a weeklong celebration for the 2012 s e r i e s champion a n d NASCAR’s legion of fans. Enter these great The annual NASCAR Sprint Cup Series Awards – and all sweepstakes of Champion's Week – will return to Las Vegas for the today for next three years. As in past years, fans can expect an your chance exciting, interactive week of activities. to win an awesome ultimate NASCAR bash of the year-end getaway to NASCAR year. Lucky partygoers will Sprint Cup Series Champion’s receive airfare, a three-night Week: hotel stay, tickets to the NMPA 3M Automotive AfterMyers Brothers Awards market “Your Ticket to the Luncheon™, NASCAR Victory Track” Sweepstakes – Now Lap™ and NASCAR After the select 3M products come with a
NASCAR Nationwide Series
O’Reilly Auto Parts Challenge Great Clips 200 Ford Ecoboost 300
Nov. 3 Nov. 10 Nov. 17
NASCAR Camping World Truck Series
WinStar World Casino 350K Phoenix 150 Ford 200
Nov 2 Nov. 9 Nov. 16
One of these top-12 drivers will be crowned the 2012 NASCAR Sprint Cup Series Champion – and you could join them in Las Vegas to celebrate!
Follow NASCAR Performance on Twitter and Facebook www.twitter.com/NASCARauto ■ www.facebook.com/NASCARPerformance
bonus inside – a chance to win great prizes and a dream NASCAR experience. Shop professionals can look for Your Ticket To The Track winning promotional stickers in qualifying 3M professional products. Just enter the code on the back of your sticker to win at 3MCollision.com. Freescale “Wide Open” Sweepstakes – Freescale, the Official Automotive Semiconductor of NASCAR and the processing power behind the NASCAR Sprint Cup Series switch to fuel injection, offers fans a chance at a Champion’s Week trip and more by visiting Facebook.com/FreescaleRacing. K&N’s 2012 NASCAR Sprint Cup Series Champion’s Week in Vegas Sweepstakes – K&N, the No. 1 Filter in NASCAR, invites technicians and fans to enter to win big at knfilters.com. MAHLE Clevite Champion Technician Contest – Designed to honor the skills of engine technicians and specialists nationwide, participants enter via essay submission describing how an engine technician or specialist demonstrates success and furthers the field of engine development. Participants can either submit an entry about themselves, or on behalf of the nominee. Applications can be downloaded at http://champion technician.mahleclevite.com. Mobil 1 Racing Academy – Mobil 1, the Official Motor Oil of NASCAR, invites you to race your way to NASCAR Sprint Cup Series Champion's Week by playing the Mobil 1™ Racing Academy game daily at mobiloil.com.
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COVER STORY
Small Shop
Survival Realizing that pointing fingers and doing things the same old way doesn’t cut it anymore, some shops are banding together in networks, finding strength in numbers. By Mark Claypool “Come gather ’round people Wherever you roam And admit that the waters Around you have grown And accept it that soon You’ll be drenched to the bone If your time to you Is worth savin’ Then you better start swimmin’ Or you’ll sink like a stone For the times they are a-changin.’” — Bob Dylan, The Times They Are A-Changin’
ndeed, the times are changing. This should come as no big surprise. It was predicted and the impact was foretold in the 1980s. Now we’re living it. Consolidation (read more about this in the September 2012 issue of BodyShop Business) isn’t happening everywhere… yet. If you live in a medium to large market, you’re probably either a consolidator/MSO yourself or a rugged
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individual still fighting the good fight. Or you don’t have a clue and probably aren’t reading this anyway. As independents, you’re probably seeing the big players taking bigger and bigger slices of the market share pie. Realizing that pointing fingers and doing things the same old way just doesn’t cut it anymore, some shops are banding together in networks, finding strength in numbers.
The Former Norm » Mom-and-pop shops used to be the norm. Local hardware stores in a community lived in denial when the threat of the big box stores loomed over them. They felt that no big, impersonal corporate store would match their level of service or connect with the customer the way they did. They were wrong, and nearly all of these small businesses are now toast. The same has been happening in our industry. Insurers, for their own economic reasons, have demonstrated that doing business with multiple-shop operators
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(MSOs) is their preference. They prefer the single point of contact MSOs provide, consistency of claims handling, brand recognition, administrative paperwork handling and, importantly, the ability to measure key performance indicators in an effective, efficient manner.
Banding Together » So what does that leave for the 91 percent of single-
COVER STORY » Small Shop Survival tions in Southern California, the Pacific Northwest and Mountain states. 䡲 BODYPROS Collision Repair (www.bodyprosusa.com) – BODYPROS is a four-shop network in the Des Moines, Iowa, area. Its goal is to reach out to a 50-mile radius of Des Moines and double its volume in the next five years.
The Network Theory » Independent
location shops in our industry? Acknowledging they’ll have to do something different just to try to maintain their present position, let alone grow. Carving out a specialty niche, like fleets, RVs, bedliners, window tinting, PDR, etc., is what many have done for more revenue. Many have strong reputations in their markets, repeat customers and great word-of-mouth. Others are banding together with other like-minded shops and creating networks that have many of the advantages consolidators enjoy while still maintaining their independence.
shop owners wear many hats: CEO, CFO, VP of marketing, VP of sales, etc. That’s a lot of pressure. Do they have all those skills or have they sought training to assist them? In the book, “The EMyth Revisited,” Michael Gerber points out that small business owners gravitate toward what they know best, spending time in those areas which often isn’t where the business actually needs them to be concentrating their efforts. Networks, structured properly with the necessary programs and tools, can provide all of this so the shop owner doesn’t have to do it all themselves. Networks are also creating relationships with insurers that bring cars to the door to fix – cars that shops would not likely have gotten otherwise. There are a number of efforts going on around the country. We’ll focus on these three: 䡲 1Collision Network (www. 1collision.net) – Based out of Milwaukee, 1Collision is targeting the Midwest, currently with 10 locations in Wisconsin and Illinois, 10 more soon to join, and plans to reach 200 shops in the next couple years in Minnesota, Iowa, Indiana, Michigan and Ohio. 䡲 Fix Auto USA (www.fixauto.com) – Founded in 1997 and based in Anaheim Hills, Calif., Fix is a network of nearly 200 shops, including 48 branded loca-
1Collision » For Jim Keller, president of 1Collision Network, brand is first and foremost in the mind of the consumer and insurer. His network offers an easy brand to affiliate with: a large, red numeral 1 attached to the shop name. Example, if the name is Joe’s Collision, it becomes Joe’s Collision 1. “The power of the brand is to promote the group as a whole, combining resources to promote ourselves,” says Keller. “We get lots of mileage out of dollars invested, facilitating group advertising and marketing.” 1Collision works with new partners to develop full marketing plans up front. “We actually execute the marketing plan on behalf of the shop,” says Keller. There are two basic components: connecting with insurers and connecting with consumers. “A typical shop would have to hire someone. That’s a special skill set and costly. We have industry professionals who are experienced in doing these calls.” Ongoing marketing efforts are conducted through special software that provides status updates via text or email. Every three months, an email goes out to keep in touch, and a phone app is also available. This is all done automatically through an application on the shop’s computer tied to its management system. In addition, the network will have the ability to track CSI electronically through its software system integrated into its dashboard. Consumers participate via email or text approximately two days after delivery. Optima Automotive handles all its Web presence management. KPIs are measured and managed with every repaired vehicle. SOPs are www.bodyshopbusiness.com 25
COVER STORY » Small Shop Survival
“We get lots of mileage out of dollars invested, facilitating group advertising and marketing.” — Jim Keller, president, 1Collision
ranging from marketing to Web presence to compliance. “We wanted to help independents see our vision of how to compete with MSOs, how consolidators do what they do and what a group of commonly branded shops can do to compete,” says Keller.
Fix Auto » “Through a network, shops implemented for consistency, paperwork, the customer service process and claims handling. “Our insurance marketing piece will demonstrate our network shops are compliant to SOPs,” says Keller. “Our brand means something. This includes meeting CIC’s Class A Standards. “Working with insurers is part of our growth strategy. We’ll be meeting with insurers regionally first, then nationally later. As we grow through the region, we’ll show our KPIs to insurers, confident that
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our performance will earn us some of their business. “We have a recruiter on board to reach out [to shops], one on one. We’re looking for shops with good insurance relationships, and we’ll reach out to them or them to us. We’ll grow our network with good performers, one at a time.” Keller recently hosted 1Collision’s first seminar titled, “Competing in 2013 and Beyond.” They brought in a veritable “who’s who” from the collision repair industry to cover topics
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gain access to resources they otherwise could never afford,” says Fix Auto CEO Erick Bickett. “We leverage the combined energy, capital and resources of disparate, highly fragmented pieces into a common delivery that will create more than the sum of its parts. “A small location, by itself, cannot compete with the consolidator model. They don’t have the scale necessary to have enough influence with suppliers and customers. Communicating with consumers, branding and advertising are still rarely used by independents.
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COVER STORY » Small Shop Survival Advertising will be a requirement in the future to drive utilization of insurance company-sponsored programs to the levels that keep costs down and value up.” KPI’s are one of Fix’s specialties, says Bickett. “We measure almost every element of the claims experience. We find that, without measurement, you
have to focus on activity – not good for creating improvement. If you want to create improvement, you measure outcomes first. This, in itself, will cause improvement for those who know they’re being measured. The second phase is comparing peer-to-peer, and then performance improves. The final phase is implementing incentives to
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the measurements…which results in more improvement.” Bickett believes competing with consolidators requires enhanced insurance relationships. “There are many examples of business-to-business relationships that drive value,” he says. “Service and quality are table stakes. Many independent repairers would argue this, saying that they alone are the quality leaders in their market. But remember – quality is in the eye of the beholder. Quite frankly, you can overbuild quality. Insurance acceptance comes from delivering on their business needs and requirements. Insurance companies want predictable outcomes and consistent delivery of quality, service and price. The business models that deliver this will win.” Bickett says many activities that are part of the claims and repair process aren’t well-suited for the typical collision repair shop. Example: new assignment management. The majority of claim assignments come in at the beginning of the week from Saturday and Sunday. Those assignments flood into shops Monday and Tuesday. For some repairers, those assignments are not managed in a timely manner. Customers don’t receive a call from the shop until Wednesday and have often made an alternative choice. The independent shop loses that opportunity. Fix moves assignments into a central environment where staffers handle the calls. The assignments are called within 30 minutes of receiving them. Fix has a 50-seat call center with more than 10 services being performed for Fix shops. “Having a pulse on customer experience, how they feel about the service they receive and whether or not your process, procedure and policies are hitting the mark is critical to guiding your business strategy,” says Bickett about CSI. “Anybody who isn’t doing this is flying blind. Getting this feedback is difficult these days. Consumers are being surveyed to death. With a combination of text, email, telephone and focus groups, information can be gathered to give a huge advantage over
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COVER STORY » Small Shop Survival of what can be done in a smaller market. David McCreight of Collision Resources The business helps administrate BODYPROS. He models that deliver this will win.” says the four shops – Erick Bickett, CEO, Fix Auto in their network benefit by “pooling money together for competitors who have their heads chises, there is significant brand risk marketing, increased branding, sharing buried in the sand.” for inconsistencies or problems with information, best practices, group buyFix focuses specifically on customer- quality. So standardization of these ing power and gaining market share. facing best practices. Fix measures all best practices is absolutely paramount.” We consistently bring new, more proffacets of the process, taking the “best Fix’s insurance partners are en- itable work to our members by prodemonstrated practice,” standardizing couraging them to open up addi- viding a consistent repair product and it, then creating training for it so it can tional markets. “We won’t enter a customer experience. We’ve lowered be implemented across the network market we cannot serve,” concludes the cost of new customer acquisition of Fix shops. Fix sets the bar high, Bickett. “We don’t want to denigrate by pooling resources and by having a using a sophisticated methodology for the quality, service and price levels bigger footprint in our marketplace.” filtering out shops that won’t fit their Fix commits to.” “BODYPROS helps members make model; only 20 percent make the cut. more profit, build stronger relationCrucial to Bickett is protecting the BODYPROS Collision Repair ships, network, communicate regularly brand. “With our Fix-branded fran- Network » BODYPROS is an example with trusted peers and work on issues
“Insurance companies want predictable
outcomes and consistent delivery of quality, service and price.
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COVER STORY » Small Shop Survival together,” McCreight adds. “We help track CSI as well through the use of a mail card and online.” “We’ve kept it simple and our members are still completely independent,” McCreight says. “We provide CE classes, do education sessions, created standardized procedures and processes for sales and customer servMcCreight: “We keep it ice for indexing. We simple, and our have our own form members are still of a call center. And, independent.” we’ve built good friendships in the process, too.” A unique benefit of being with BODYPROS is helping ownership develop long-term exit strategies – something all small businesses should be considering.
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Are Networks For You? » Given what you’ve seen from three different networks, you have a lot of information to decide whether a network is for you. Starting a new network is lots of work; someone needs to take the lead full time to put it together. Perhaps there are networks in your area. Explore your options and consider if a network fits your business philosophy and can become a part of your business model going forward. Your shop’s future may depend on it if consolidation is getting strong in your market and you don’t have a specialty niche or a huge percentage of repeat or word-of-mouth customers. Just remember, Generation Y (people under 30 years of age) now represent more than 50 percent of the population. Word-of-mouth means much less to them unless it’s done through social media. BSB
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BSB Contributing Editor Mark Claypool has 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, search engine optimization (SEO) services and social media management services. He’s also the director of business development for Metro Paint Supplies in Chicago. Claypool’s work history includes VP of VeriFacts Automotive, founder of Mentors At Work (now a division of VeriFacts), executive director of the I-CAR Education Foundation and the National Auto Body Council (NABC), co-founder of the Collision Industry Foundation and national director of development for SkillsUSA. Claypool served, on a volunteer basis, as the SkillsUSA World Team Leader for the WorldSkills Championships.
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TECHNICAL
In the
Thick of ofIt Today’s advanced vehicles use steels of varying thicknesses for safety and lighter weight. A welding test has to reflect this to ensure a technician has the skills to weld these cars’ advanced structures. Figure 1. The revised I-CAR Steel GMA (MIG) Welding Qualification Test now features 10 welds made on steel coupons in two thicknesses to more accurately represent today’s vehicles. (All photos courtesy of I-CAR)
he challenge for the automakers to make vehicles safe and strong as well as lightweight has resulted in material variations. Many of today’s steelstructured vehicles use steel for the outer panels that’s 0.70 mm thick. The structure is typically made of even thicker, higher strength steel.
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This has resulted in I-CAR revising its Steel GMA (MIG) Welding Qualification Test to more accurately reflect the thicknesses of steels being used. The revised test was released on July 30, 2012 and features 10 welds made on steel coupons in two thicknesses. (Figure 1).
Two Thicknesses » Based on a survey of some of the top-selling vehicles in North America, the two thicknesses selected were 22-gauge and 16-gauge zinccoated steel. The 22-gauge varies in thickness between 0.68 and 0.81 millimeters. The 16-gauge varies between 34
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1.4 and 1.6 millimeters. The original test coupons were a single thickness 18gauge steel. The two thicknesses selected not only represent the steel found on current vehicles, but require a broader range of technician welding ability. If a technician properly passes the test, it will verify that they have the skills required to weld advanced structures. Thin welding coupons were also included in the test based on several comments from participants indicating that they wanted to test on the kind of steel found on the exterior panels of many vehicles.
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TECHNICAL » Welding Mild Steel vs. High-Strength Steel » With the many different steels used in vehicles today, material selection and sourcing presented interesting challenges in revising the test. We asked ourselves, “If we select specific steel strengths that represent only one vehicle or OEM, how does this compare to other steels on other vehicle makes and models?” To maintain a focus on weld quality and a consistent student experience, both of the coupons selected for use in the revised test were mild steel. We found little or no difference in welder settings when making GMA (MIG) welds on mild steel compared to welding on high strength steel (HSS), or even steel graded as ultra high strength steel (UHSS). There’s another reason we went with mild steel only, and that’s because of the experiences we were having
Figure 2. In the plug weld portion of I-CAR’s Steel GMA (MIG) Welding Qualification Test, there is a “thick-to-thick” plug weld representing those made into a butt joint with back insert when sectioning a rail.
with destructive testing. A successful plug weld twist test on two mild steel coupons will invariably twist a nugget out of the base metal, or bottom coupon that does not have the
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punched hole. Any flaw in the plug weld, such as a skip or one spot around the hole where there’s no fusion, results in a nugget twisting out of the top coupon instead.
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TECHNICAL » Welding On a plug weld where the base metal is a grade of HSS and the top coupon is mild steel, the opposite occurs. A successful plug weld twist test pulls a nugget from the top mild steel coupon instead of the bottom coupon. It may be difficult to determine, then, whether the nugget twisted out of the top coupon because it’s weaker steel or because the weld is flawed in some way.
Plug Weld Tests » For the I-CAR Steel GMA (MIG) Welding Qualification Test, four of the 10 required welds are plug welds. These include a “thinto-thin” plug weld (22 gauge to 22 gauge) in the vertical position. The plug weld is made in a 6-millimeter hole punched out of the top coupon. This represents, for example, plug welds on a pinchweld flange joining two exterior panels, such as along a wheelhouse opening. It could also represent plug welds made into a butt joint backing piece, such as along a rocker panel. There’s also a “thick-to-thick” plug weld (16-gauge to 16-gauge) in the vertical position. The plug weld is made in an 8-millimeter hole punched out of the top coupon. This represents, for example, plug welds
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Figure 3. Open butt joints, butt joints with backing and fillet or lap welds in I-CAR’s test are done on materials of the same thicknesses.
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TECHNICAL » Welding made into a butt joint with backing insert when sectioning a rail (Figure 2). For the destructive test on these two welds, I-CAR requires a tearout hole in the bottom base metal coupon that’s at least 5 millimeters, but no greater than 10 millimeters. The I-CAR Steel GMA (MIG) Welding Qualification Test gauge can be used to measure the tearout hole. A tearout hole close to the size of the plug weld itself signifies a strong plug weld, but too large of a tearout indicates too much heat. There’s also a 22-gauge to 16-gauge or “thin-tothick” plug weld in both the vertical and overhead positions. These represent, for example, plug welds along a vertical pinchweld joining an outer B-pillar to a thicker reinforcement. With this example, the thicker steel on a vehicle may be HSS or stronger, as is common on B-pillar reinforcements. Again, in the I-CAR test, we wanted a nugget to twist out of the bottom coupon, so both coupons are mild steel. We found in our research that the more heat applied when making the plug weld, the larger the tearout hole. Since excessive heat is something to avoid when welding grades of HSS, we require a tearout hole
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Figure 4. A collision repair shop must have, among other things, a large vise for destructive weld testing in order for I-CAR to administer a test on-site.
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TECHNICAL » Welding from the bottom thicker coupon, but that hole should be a maximum 5 millimeters, rather than a minimum 5 millimeters like the rest of the plug welds.
Other Test Welds » In addition to plug welds, there are open butt joints, butt joints with backing and fillet or lap welds required in the qualification test. All of these welds are done on materials of the same thicknesses (Figure 3). There’s a vertical open butt joint using two thin coupons which, for example, represents a common joint required on pillars and rocker panels on Toyota vehicles. There’s also an overhead butt joint with backing using three thick coupons. This represents, for example, a common joint when sectioning a front lower rail on a Chrysler vehicle. There are two thin-to-thin fillet welds re-
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quired, both a vertical and overhead. These represent the joints where an exterior panel is lapped over another exterior panel.
Administering the Test » As has been the case for several years, an I-CAR test administrator will administer the test at your repair facility using your own welding equipment. This helps ensure you’re familiar with the equipment and surroundings. Also, the tips on maintenance and tuning the welder will give you intimate knowledge of your welding equipment. The test administrator provides the test coupons and a weld positioner for making the welds in the vertical and overhead positions. A check-off form, given to the repair facility prior to the test day, ensures that the facility has the right equipment and materials for the test. As an example, a large vise is
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required for destructive testing of the welds (Figure 4). Like any I-CAR event, the Steel GMA (MIG) Welding Qualification Test is administered in a supportive learning environment. The test administrator leads a practice session, as much as is required, and offers guidance throughout to ensure all of the technicians making the welds are successful. By the end of the session, everyone participating in the event will know more about GMA (MIG) welding and be a better welder. To learn more about the Steel GMA (MIG) Welding Qualification Test (WCS03), or to request a welding event in your area, visit the I-CAR website and click on “In-Shop Welding Qualification Series” under the “Quick Links” tab on the home page. BSB Article contributed by I-CAR.
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INSURANCE RELATIONS
Hail Horror o we have an insurance company “partner,” or will they abandon ship at the first sign of trouble? In the corporate environment we work in today, you can bet that some will run at the first sign of trouble, while others will stay and help. We found that out the hard way after the worst hailstorm we had ever seen blew through.
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Catastrophe Strikes » I’ve been in the automotive business for more than 35 years and I’ve never been through anything like the hailstorm that hit my area (Beavercreek/ Xenia/Dayton, Ohio) on May 25, 2011. I’ve experienced hailstorms, ice 44
Do you truly have an insurance “partner?” After working through the worst hailstorm we had ever seen, we discovered that one insurer didn’t live up to that label. By Jim W. Patrick storms, floods, blizzards, locusts, flies and a major tornado that hit my area on Sept. 20, 2000. But the 2011 hail storm caused more repairable vehicle damage in a concentrated area at one time than anything before.
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It was a catastrophic storm by insurance company standards, and not our normal way of doing business. It took us a couple months to get a handle on the volume and the total amount of damage. The first two days, we had more than 150 vehicles dropped onto our lot for repairs. Plus, more than 450 of our dealership’s new and used vehicles suffered damage and needed to be repaired as soon as possible. We set up some insurance drivethrus and had adjusters all over the place. We had a half dozen paintless dent repair (PDR) companies show up the first day after the storm, some good and some not so good. It took awhile to get them set up and sort
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INSURANCE RELATIONS » Hail Horror out the professionals from the hacks. The hail damage ranged from marble-size to baseball-size, and windshield and rear glass damage was common. We hired more techs (all we could find) and estimators to help, but we were already months behind and playing catch-up. For the next six months, we averaged 100 to 120 vehicles on the lot, most with severe damage. We normally handle 40 to 60 vehicles and maintain a nine-plus CSI score (10 being a perfect score). By the end of 2011, our total customer pay volume was up more than $1 million, and all of it came in the last six months. This overload continued as we scheduled hail repair through March 2012. Our CSI score with one insurer fell from 9.57 in January 2011 to 8.57 in December 2011. The workload for that insurer alone went up 63 percent
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Do we have an insurance company “partner,” or will
they abandon ship at the first sign of trouble? in the last half of 2011 compared to the first half of 2011. We had been on this insurer’s DRP for more than
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12 years and had never been suspended or reprimanded in any way. I asked this insurer if I could be re-evaluated at the end of the first quarter of 2012, but I was only given till the end of January 2012 – three days! This insurer had made up about 15 percent of our workload and had been a valued partner in our business. We also had a good working relationship with their local field manager and adjusters. On or off the DRP program, we will continue to honor our agreement and give the best customer service possible.
Not Fast Enough » The No. 1 complaint we got was that we couldn’t get the repairs done fast enough. It was a scheduling nightmare. Some cars could be done with PDR, while others needed conventional repair. Most, however, needed both. And most needed glass
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INSURANCE RELATIONS » Hail Horror work as well, so we also needed to schedule glass companies to a) replace or pull glass for roof replacements or repair work, and b) reinstall after refinishing. The problem is that the glass companies were dealing with the same overload and scheduling problems the body shops were. Most vehicles came in with poorly written estimates and needed major repair changes. Almost all needed a supplement of some kind, which would cause an insurance hold in most cases. For all the PDR work, we needed the PDR techs to estimate the work needed and supplement it to the insurers for approval. After the PDR techs did what they could do, we needed to complete a total estimate for the repair. Sometimes the PDR techs cracked the paint or couldn’t get the dent to come all the way out; thus, the estimate would be changed to a con-
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a PDR repair that would take three or four days but not include the roof because they couldn’t repair it. Thus, it would become a three- to fourweek repair. We had to add four large trailers to store parts as they came in. We got some hoods and fenders in two or three days, but then had to wait months for roofs, roof rails and sunroofs.
The first two days, we
had more than 150 vehicles dropped onto our lot for repairs. ventional repair or paint work – which of course added to the scheduling nightmare. For example, we would schedule
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Patience Is a Virtue » After our customers had to wait for weeks or months to get their vehicles in the shop for repairs, it was hard to ask them to be patient with us. They didn’t understand how the insurance estimates could be so far off. In all fairness to the field estimators, they hadn’t ever experienced hail damage of this magnitude and, in some cases, were totally at the mercy of the PDR companies. Some customers also worried
INSURANCE RELATIONS » Hail Horror about rental coverage running out, knowing they only had 30 days. Some big jobs took more than 30 days to repair. We had several repairs around $20,000, and some parts began to run short in supply after the storm. Over the last six months of 2011, we paid out more than $60,000 in car rental expenses to help our customers deal with this catastrophe. Customer satisfaction is always our No. 1 goal. We have 13 other DRP partners that are trying to help us get our CSI back to where it was before the storm. It’s just one that isn’t.
Apples to Apples » I was told that the problem we had with the insurer that dropped us was at the corporate level. The scoring system with insurance companies on CSI doesn’t consider volume. If a shop
does 100 repairs a month and has four bad customer satisfaction surveys, that means 96 percent of your customers were satisfied. If the shop does 10 repairs and has three bad surveys, that means 70 percent of your customers were satisfied. That clearly illustrates why volume should be a consideration when figuring out CSI. Local problem or corporate problem, when it comes to comparing collision repair centers, insurers should compare apples to apples and consider the total picture. The hail storm only hit an area around Dayton, so to compare us to shops in Southern Ohio that didn’t have to deal with any hail damage is ludicrous and leaves you with a distorted picture. Abandoning ship after a storm may help the insurance company’s
CSI scores for a short time and briefly relieve the corporate pressure, but in the long run, it could create inconvenience for our mutual customer. My main point is that DRPs belong to the insurance companies. Whether it’s your fault, their fault or nobody’s fault at all, it’s their program and they can drop a shop with only a phone call. I’m thankful we had 13 other DRPs to lean on.
A Good Thing » Please don’t think I’m whining about the overload of work we had; we were glad to have it. It resulted in recordbreaking sales, which was good for everyone. The hail fell like manna from heaven, but just like the manna from heaven in the Bible, you couldn’t store it because it wouldn’t keep. The timeframe we had to take advantage of this blessing was limited, and if we hadn’t handled it in a timely manner, it would have become a mess. We learned from our experience and now know what we would do differently if it happens again. John Maxwell once said, “The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails.” So hold on! We’re adjusting our sails to the wind and starting on a new course, totally committed to improving our CSI scores. P.S. The first half of 2012 ended with customer sales up 30 percent over last year and 98 percent of our repairs were delivered on time. We also showed improvement with all of our CSI scores and had a 9.8 average – and one CSI score was a perfect 10! Thanks to the 13 DRP partners that are helping us right the ship – and good luck to the one who’s jumping out. BSB Jim W. Patrick is the collision repair manager for Lang’s Chevrolet in Beavercreek, Ohio. He can be reached at jpatrick@langs.com.
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SHOW PREVIEW
The SEMA Show is back with a bigger and better Collision Repair & Refinish section and Repairer Driven Education seminars. Odds are you’ll walk away a winner. By Jason Stahl and Gina Kuzmick t’s best to be careful not to let the glitz and glamour of all those beautiful cars at the SEMA Show blind you…because then you might miss the best part of the show. The best part, at least, for collision repairers. That would be the Repairer Driven Education (RDE) track of seminars offered by the Society of Collision Repair Specialists (SCRS). In its third year, SCRS Executive Director Aaron Schulenburg says it’s bigger and better than ever. “The early registration numbers being up almost 300 percent over last year reflects a couple things: the caliber of the courses that we’ve had for the past two years and the
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lineup this year, plus the familiarity people now have with RDE,” says Schulenburg. “Two years ago, this was an event with a brand-new format that the industry was kind of figuring out, and I think this year, the industry has decided earlier that, ‘Hey, this is where we want to be.’ We’re seeing a lot of companies wanting to support it, and we’re continuing to receive great support from a lot of our existing sponsors. Content-wise, I think everyone can expect information that once again is relevant and can provide tangible benefits to people, who can then return home from the show and apply what they learned to their businesses.”
After-Hours Reception » And what would Vegas be without a party? SCRS will once again host its sky villa after-hours reception on Thursday evening, Nov. 1. Last year, only RDE participants were invited, but this year anyone can register for it by visiting
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SHOW PREVIEW » SEMA www.semashow.com/scrs. Last year, attendees got to cavort in Elvis’s suite at The Hilton, but this year the party will be held at one of Michael Jackson’s favorite haunts. “It’s just magical that you get to be in a space that very few people get to see,” says Schulenburg. “These are exclusive suites reserved for very special people who are guests of the hotel.”
Parts Procurement » A key presentation this year will be “Bidding Wars: A Global View on the Possible Economic Impact of Insurer Involvement in Parts Procurement.” The presentation will take place at 12:30 p.m. on Thursday, Nov. 1 in the Upper North Hall of the Las Vegas Convention Center, and will feature Rex Crowther, editor of Panel Talk Magazine in New Zealand, and David Newton-Ross,
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Things to Do Dream Racing As its name suggests, Dream Racing allows riders to fulfill their fantasies of driving a world-class racecar around a professional track. Suit up in full-body racing gear, then get behind the wheel of a Ferrari F430 GT for some fast-paced thrills at the Las Vegas Motor Speedway. Choose your own “experience” according to your desired challenge and burn some rubber! 7000 Las Vegas Blvd. North (702) 599-5199
Haunted Vegas Tours Channel your inner ghostbuster through one of these spooky historical tours. Patrons will visit local haunts and hear bone-chilling tales of paranormal occurrences and mysterious deaths. Brace yourself for an eerie séance at the end of the tour – and be prepared to sleep with the lights on afterward. (702) 339-8744
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SHOW PREVIEW » SEMA editor of The National Collision Repairer in Australia and The New Zealand Collision Repairer. While the U.S. has only recently been exposed to online bidding requirements for parts procurement, other countries such as New Zealand have dealt with carrier-mandated parts tendering for many years. This session will provide attendees with a global perspective on the economic impact of New Zealandbased bidding programs, procedural impacts they have had on cycle times and estimating practices, and changes they have had on repairer/supplier relationships. It will also include a historical overview of the national rollout, changes made to the program along the way and market impact from inception to present day, including market response at various points throughout the past eight years.
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Continued from pg. 54
Guns N’ Roses Let your hair down and get ready to rock! The beloved ’80s group finds paradise in Sin City for a 12-day residency at The Joint at the Hard Rock. Catch them on Oct. 31 and Nov. 2, and be sure to wash off your eyeliner before attending SEMA the next day. The Joint 䡲 4455 Paradise Road (702) 693-5000
Eli Roth’s Goretorium If you’re looking to get scared to death, then a visit to Eli Roth’s Goretorium may be in store for you. Created by the director of “Cabin Fever” and “Hostel,” this horror fest goes beyond your average haunted house by making the terrifying story of a serial killing family a reality. You’ll feel like the star of one of Roth’s films as you run for your life. Located across from The Cosmopolitan www.goretorium.com
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SHOW PREVIEW » SEMA
Repairer Driven Education Schedule Tuesday, Oct. 30 — 10:00 a.m. - noon RD2012 - Is New Vehicle Technology Endangering Your Business? (Kim Hazelbaker, Highway Loss Data Institute) Tuesday, Oct. 30 — 12:30 - 2:30 p.m. RD1 - Hybrid Power & Platforms (David Gruskos, RAE Inc.) RD2 - Marketing: More Customers, Sales & Profits (Frank Terlep, Summit Software and Mobile Solutions) RD3 - Monetize Your Opportunity: The Benefits of Business Diversification (Tom Myroniak, SEMA) Tuesday, Oct. 30 — 3:00 - 5:00 p.m. RD4 - Learn How to Make Sense of OEM Repair Information (Tom McGee, ALLDATA) RD5 - Change the Way You Think at a CORE Level (Bill Park and Dr. Byron Bissell, MpowerU) RD6 - Numbers You Can Take to the
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Bank: Measuring and Improving Performance (Tom Hoerner, BASF) Wednesday, Oct. 31 — 12:30 - 2:30 p.m. RD7 - Paint Shop Throughput: A Quick Changeover Approach (Robb Power and Brett Bialowas, PPG Automotive Refinish) RD8 - Marketing to Consumers Supporting Customer Pay Sales Efforts (Steve Trapp, DuPont Performance Coatings & Robert Rick, Gates Business Solutions) RD9 - Understanding Design-Based Repairs (Richard Perry, CHIEF Automotive) Wednesday, Oct. 31 — 3:00 - 5:00 p.m. RD10 - Going Green Doesn’t Have to be Expensive (Steven Schilling, GRC-Pirk Management) RD11 - Dedicated vs. Universal Fixtures: The Pros and Cons (Shawn Hart, Car-O-Liner Company)
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RD12 - Lean Flow Concepts: Improve Your Hours Completed Per Day (Steve Trapp, DuPont Performance Coatings & John Sweigart, The Body Shop) Thursday, Nov. 1 — 12:30 - 2:30 p.m. RD13 - Maximize Your Web Presence (Mark Claypool, Optima Automotive) RD14 - Make More Money WITHOUT Spending an Arm and a Leg! (Toby Chess) RD15 - Bidding Wars: A Global View on the Possible Economic Impact of Insurer Involvement in Parts Procurement (David Newton-Ross, Collision Repair Specialists of Australia (CRSA) Thursday, Nov. 1 — 3:00 - 5:00 p.m. RD16 - Importance of Repair Standards in Completing a Safe and Seamless Repair (John Spoto & Shawn Collins, 3M)
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SHOW PREVIEW » SEMA Continued from pg. 58 RD17 - Waterborne Refinish Coatings: What Are You Waiting For? (Jeff Griffin & John Parran, PPG Automotive Refinish) RD18 - Bulletproof Your Company: Effective Human Resources, Policies and Procedures (Cory J. King, Fine, Boggs & Perkins LLP) Friday, Nov. 2 — 10:00 a.m. - noon RD2012 - RDE Headline Session: Game Changers - Innovation Forum Friday, Nov. 2 — 12:30 - 2:30 p.m. RD19 - Vehicle Knowledge for Triage, Blueprinting and Estimating (Larry Montanez III, P&L Consulting) RD20 - Achieving Service Excellence by Applying LEAN Thinking (Steven Feltovich, Sherwin-Williams Automotive Finishes) RD21 - He Who Controls the Data, Controls the Truth (Michael Anderson, Collision Advice)
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Burger Bar » With endless burger combinations available, the Burger Bar appeases picky eaters and adventurous palates alike. Patrons customize their creations by choosing their own beef (buffalo, anyone?) and bun. If you’re looking for lighter fare, opt for a veggie patty or Atlantic salmon steak. Vegas Vittles Then prepare to load up on as many toppings as possible, from truffle mayo to jalapeno bacon. Save room for sweet potato or zucchini fries and dig in! 3930 South Las Vegas Boulevard #121 A 䡲 (702) 632-9364
Joe’s Seafood, Prime Steak and Stone Crab » Featuring a hearty menu of seafood, burgers and steaks, Joe’s has something for everyone in your party. Stone crab serves as the signature, as each one is freshly hand harvested. After having your fill, select from one of the menu’s numerous pies to take home as a late-night snack. 3500 South Las Vegas Boulevard 䡲 (702) 792-9222
Roy’s Restaurant » Say “aloha” to flavor from the islands. Located right in the midst of the Strip, this joint serves up delectable dishes such as seared duck, mahi-mahi and eclectic sushi rolls. Aloha Hour is from 4 to 6 every night and features $5 appetizers and tropical specialty cocktails. Select from one of the spacious private rooms for a business supper and dine-in paradise. 620 East Flamingo Road 䡲 (702) 691-2053
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»| Industry Update |« ASA continued from pg. 12 “Most of us are here today because this might be the one issue that pushes everybody over the edge where we say, ‘Wait a minute – no, we’re taking back our business and running it the way we want to,’” said one repairer. Terry Stanley, parts manager of Ganley Lincoln in Middleburg Heights, said, “I think the biggest issue here is control. You have to decide if you’re going to let State Farm run your business or if you are going to run your business. I think the answer is that if you let State Farm do it, then you have a problem because
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The roughly 100 Ohio collision repairers in attendance at ASA’s PartsTrader meeting displayed the same skepticism and pessimism toward the parts program shown by other repairers in the U.S.
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»| Industry Update |« no one knows your business better than you do. If you’re on this program today and there are certain rules, tomorrow if State Farm doesn’t like those rules, they can change them.”
Points of Contention » Denise Caspersen recapped all of the in-
formation that ASA has been gathering on PartsTrader in its effort to determine whether it will support the application. She clarified a few things and addressed some points of contention: When a shop sets up its “preferences,” it can select its default OEM supplier from which it
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can direct order if it so chooses instead of getting quotes from other suppliers. The shop can then choose (or not choose) its preferred OEM suppliers, which would be its secondary suppliers. If the shop wanted to see what was going on competitively in the marketplace, it could send out a quote that would go to all the suppliers in the market (used, aftermarket, OEM). “I get asked, ‘Am I going to get quotes from suppliers that are four states away?’” Caspersen said. “The answer is no unless the supplier stated that was their market area. When the supplier fills out its preferences, they state their market size. If they say their delivery is 50 miles from where they’re at or 200 miles, that’s what it is. But this program won’t make you buy from a supplier that is four states away.” Caspersen addressed repairers’ concern that their failure to get quotes from multiple suppliers will negatively impact their scorecards. She said the consequence for not using the quote process will be no different than what it would be the way repairers are ordering parts today. “The scorecard is based on a bunch of things,” she said. “Does doing a direct order affect your scorecard? If it affects your scorecard today, it will affect your scorecard tomorrow. [PartsTrader] is just an application to facilitate the purchase – not to change how your scorecard affects you.” Then there was a brief exchange on the scorecard between Caspersen and a repairer: Repairer: “The scorecard is the underlying thing here. This is what is putting all of us competing against each other. So if we’re just using a specific vendor, and that price point is not what the other competitive shops are doing by shopping it, that affects
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»| Industry Update |« the scorecard, which in turn will affect our position on their rating or who the shop of choice is in that area.” Caspersen: “No doubt. And that’s what is happening today, right?” Repairer: “No. Because if other shops are starting to use that pro-
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gram and you decide not to, you’re going to feel the effects of that.” Caspersen: “If you decide not to use this program, and you’re on Select Service and they roll it out in your market, the reality is you’re no longer on the program.” Repairer: “So the scorecard is
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what we’re all playing games with here.” Caspersen: “The scorecard is what you’ve always been playing games with as a Select Service shop. That’s the reality. That’s the piece that affects Select Service shops and how they’re listed in the marketplace. This application does not directly feed to the scorecard; it is not connected. But the reality is that the outcome of the use of this application, just like your parts purchasing today, is connected to your scorecard.” An alternative parts supplier in the group asked Caspersen if a shop’s scorecard would be affected if it chose him directly and his price was $100 higher than the market. Caspersen: “Potentially, but it depends on other [factors relating to the scorecard].” Supplier: “How do I know that?” Caspersen: “You don’t because you don’t know what other people are quoting. You have to compete based on your own circumstances. If you have eight widgets in a box and they’re costing you ‘X’ amount of dollars and you want to move them, and it would be more cost effective to quote at a different price, then you quote that price.” Supplier: “It sounds like it’s bad for suppliers because typically in our business, it’s not like we have a list price or we control that, so there will be a price war, and in order to get the sale, everyone is going to be beating everyone else down.” Another comment was added by a recycler who said, “It makes it a bit tough because our inventory isn’t like new where somebody can just look at something and know it’s this. We’re losing our ability to describe to our customer what we actually have.” Caspersen said she has been working with the Team PRP net-
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»| Industry Update |« work of recyclers, and so far, those recyclers that have tested the pilot are quoting more parts, but they’re only having a 7 percent return on quotes versus their normal 16 percent. “The other concern recyclers have is that the communication system they use is interchange, not VINs. Unfortunately, PartsTrader does not do interchange,” said Caspersen. “However, they’re working to do it and are adapting the program, but right now it’s just VIN numbers.” Caspersen added that in the supplier section of the PartsTrader program, there is a “comments” box and photo box where suppliers can add photos of the parts. Another point of contention is margins. According to Caspersen, if a supplier decides to change the discounted MSRP, it then changes your margins – the same situation that exists today. But Caspersen confessed to not understand why a supplier would do that. “If you have the MSRP here, and the supplier is able to quote a price, why do they need to change the discounted MSRP?” There is a fax-only option for suppliers that don’t want to participate in this program. It is exercised through the PartsTrader application and goes directly to the supplier. Caspersen mentioned the recent modifiCircle 68 for Reader Service
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cation of the PartsTrader program to allow a 30minute quote time versus two hours. A member of the audience asked, “Are you saying a walk-in customer will have to wait between 30 minutes and two hours to get an estimate back?” Caspersen: “Because some people want to come in and walk out the door with an estimate, that’s when you would set your preference for no quoting, just a direct buy.” Repairer: “Is this something where State Farm doesn’t want to give the customer an instant quote anymore? It feels that way to me.” Another repairer said, “It sounds like we could use some education of our customers before they hit our door so they know what to expect.” At the close of the meeting, a repairer commented on the size of the crowd that had gathered to hear about the major change in parts ordering going on in the industry. “In observing what went on tonight, I think all of the insurance companies really depend on us and would be horrified that all of us are sitting in a room together discussing this because it’s the last thing they want,” he said. “They depend on us not talking to each other. They depend on us all being independent.”
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»| Industry Update |«
National
DuPont Performance Coatings Answers Questions About Sale to Carlyle fter months of speculation, The Carlyle Group announced on Aug. 30 that it had signed a definitive agreement to purchase the DuPont Performance Coatings (DPC) business for $4.9 billion in cash. The transaction is expected to close in the first quarter 2013, subject to customary closing conditions and regulatory approvals. The pending acquisition no doubt raised many questions in the collision repair industry about the future of DPC, Carlyle’s role as a consolidator and what it may mean for the future of the collision repair industry. BodyShop Business recently sat down with Matt Robertson, North America Sales Director for DuPont Performance Coatings (DPC), to clear up some of these questions. BSB: As you know, The Carlyle Group recently bought Service King Collision Repair Centers. Does the fact that Carlyle now owns DPC mean that these stores will transition to DPC products? Robertson: We had very frank discussions with the senior leadership at Carlyle, specifically the folks who negotiated the deal on behalf of Carlyle with DuPont, and their instructions to us were pretty explicit: they are an equity partner and investment company, not a management company, and they expect each one of the managing teams of the businesses they hold as portfolio companies to make the best decisions for their business and to hit their numbers. So there is no expectation of our doing business with Service King and no strategy change at this time. [Service King and DPC] are owned by the same parent company but expect to be run independently. As an example, [Carlyle] was saying there is no expectation they will use Hertz rental cars even though they own Hertz. Could that change in the future? Sure. But right now, there’s no grand plan on the part of Carlyle or DPC leadership for a tie-up with
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»| Industry Update |« Service King. If you look at it as an outsider not understanding the structure of a group like Carlyle that has 200 independently run companies, you might be thinking that. Service King is a very successful consolidator, and we would certainly like to have that and other business. I think there
has been discussion by uninformed people about some type of grand plan to consolidate or vertically integrate the industry, but what I can tell you right now is that there is no grand plan in place. We plan to continue growing, but we’re expected by our new owners to post the best num-
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bers we can, not necessarily work with all of the other portfolio companies. BSB: What will happen with the Spies Hecker/Standox brands? Will their logos/names change? Will they be spun off? Robertson: First, regarding the entire business – meaning collision, OEM, and the liquid industrial and powder business, in all geographies in which its played and sold – there is no desire to split it up. And that includes our brands within refinish. Because we’ve been DPC as a business unit, we will at some point have to change that name. We have not chosen a name yet; that works goes on. That will go along with a rebranding exercise, because DuPont owns the rights to the oval and understandably only wants us to use that for some time. Brands like Spies Hecker and Standox or things we consider sub-brands like Imron or Cromax Pro are all going with the transaction. All belong to the new entity, and there will be no change required there. We believe we have strong equity built up in all those brands. Over some time period, probably measured in years and not months, we will be transitioning to a new name and you will see the DuPont name and oval coming off the labels of our products. We serve in the neighborhood of 80,000 shops globally, and so if they have DuPont signage and labels, etc., that’s obviously going to be a little bit of an effort. BSB: Does this acquisition change DuPont’s waterborne strategy at all? Robertson: A lot of the conversion to waterborne has been driven by regulation, and then we’ve also seen some early adopters who converted because it’s green or they needed the productivity or they have customers who are responsive to the waterborne sto-
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»| Industry Update |« ry. We feel we have a really strong product out there that’s pretty compelling when it comes to minimizing booth time. But no, you will not see a change in strategy. I think it’s important for our customers to understand that they will see the same products, level of customer service, value-added services and sales force – but that really doesn’t necessarily mean status quo. We’ve been on a share-gain journey for some time now that we feel has been successful. If anything, it will only be accelerated under new ownership. BSB: What have you
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communicated to your customers about this acquisition? Robertson: First of all, there was a very small core group of people who knew about our plans within our business prior to the public announcement. The reason was because this was a big, strategic move, so it tends to be just the folks at the very highest level of leadership who are actually brought into that process. Because this transaction represents $4.5 billion of a $40 billion-a-year corporation, any change in that portfolio could be very meaningful in the stock
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price, so all of us involved were under very strict SEC regulations in terms of not being able to say anything. So there wasn’t a whole lot we could say until there was a definitive move made. But the whole time, we were preaching caution to our customers and saying that we believe we have the right people and products and great value-added service and don’t worry about the future of this entity. We’re all a good team, we’re all adding value to society and no one is going to go and buy a $4.5 billion company because they want to break it up. They buy it because they
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think they can run it better than the current owners and think it has great growth prospects. We were preaching a waitand-see attitude, and I think we would still echo that. We feel the access to capital and the expertise Carlyle has and the ability to be a 100-percent coatings-focused business that is not part of a portfolio that is heavily agriculture and biotech really works to our advantage. We have been talking at multiple levels. We have prepared our sales force well so that when we got the go order, they were prepared with all their talking points. We
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welding repair kits, Cebotech has the right equipment for your shop. Cebotech offers a complete line of welding equipment for Ultra High Strength steels such as Boron and Dual Phase steels, as well as for mig brazing, aluminum, stainless steel, dent pulling and plastic welding. Sales consulting and aftersales training and support is provided quickly through a national network of trained distributors capable of demonstrating the equipment in your shop. For more immediate information, contact us directly or access our website. For a hands-on experience in your own shop, contact one of our distributors.
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»| Industry Update |« have an enormous number of customers in an enormous number of industries or segments, so that work continues. There was an official customer letter that went out both to body shops and our distribution partners in refinish. We followed it up with oneon-ones with all four salespeople and talking with people in the trade press to try to get the word out there. At this point, I don’t know if there are any other plans for broader announcements, but I think our customers have been very understanding. Frankly, after a bunch of Reuters reports came
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out, they suspected something was up, so it hasn’t been a huge surprise to them and I think everyone has viewed it really positively. BSB: Was the selling of DPC a reflection of the collision market, which seems to be shrinking rather than growing? Robertson: First, remember that DPC consists of four completely separate businesses. We’re seeing some growth in OEM, and we’re having a pretty good run with heavy duty truck right now. And even the powder business is good, so DPC is a very successful busi-
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ness right now. DPC selling to Carlyle is just representative of a long-term change in strategy for DuPont. For the first 100 years, it was all gunpowder, then for the second 100, DuPont was largely one of the world’s dominant forces in chemicals. The move into the third century is largely wrapped around what we would call world megatrends that our CEO has articulated and that drive where she wants to place portfolio bets – and that’s largely feeding and protecting the world and reducing people’s dependence on fossil fuels. [DPC] really doesn’t fit into that portfolio. Over
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time, DuPont has divested a lot of its core businesses, but that certainly doesn’t represent a lack of value of these businesses. We got a very high multiple for the business, there was a real bidding war between a lot of sophisticated private equity firms, all of whom believe there is growth in the business. The growth in business they see, at least in the U.S., is in share versus increasing volume. We have great growth prospects (20 percentplus) in a lot of Asian markets and Russia, but the U.S., for a variety of good reasons, is going to be a declining volume
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»| Industry Update |« market. But again, that’s just one piece of the DPC portfolio. BSB: Can you comment on the profit squeeze collision repair facilities are facing due in part to the rising cost of paint and materials? Robertson: I can’t comment on future pricing plans. I think people are being squeezed at all levels of the collision repair chain, and we’re just one of them. When you look at what a shop is spending, paint comprises 4, 5 or 8 percent of the overall, so they have the same concern with parts. I think our distributors are feeling squeezed, too. We’re seeing the cost of raw materials and the investment in things like color going up every year, so it’s sort of just normal in an industry that’s consolidating, and it will be incumbent on people at all levels to take cost out. We think our costs or prices are very fair, especially given the shop productivity we can show with our new products. So while the per can price might be high, in terms of what you get out of it, we actually think prices are very fair. BSB: What is the outlook for DuPont’s NASCAR sponsorship activities? Robertson: It will continue. It’s a big part of the DPC DNA. We created DuPont Motorsports in 1992 and are celebrating our 20th year with Jeff Gordon this year, so it’s really important to us and I think it’s impor78
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tant to our customers. We have a contract with Jeff and Hendrick Motorsports that extends through 2013, and we’re committed to that and believe we built a lot of equity with that. I can’t really tell you what the future holds, but we’re going to be working between the DPC leadership and the Hendrick organization and Jeff’s team to figure out what the future holds. BSB: Will there be any staff changes as the result of the acquisition? Robertson: Regardless of who the owner is, [staffing] could change in the future. But the word from our new owners is that they’re an equity partner and financial company, not a management company. They’re expecting to give us our financial target to hit, and it’s the responsibility of the management team in place to do that. For our customers, they’ve heard it a lot, but we’re committed to making it a seamless transition with them, so they shouldn’t expect to see changes to products or people or strategies or anything like that – at least in the short term. The rebranding issue will work out, and once we figure that one out we will be vocal with our customers about that. In sum, we’re very excited about the prospects of being associated with a company that has the type of resources Carlyle has.
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»| Industry Update |« State Farm Releases Update on Electronic Parts Ordering to Select Service Shops On Sept. 12, State Farm released a bulletin to its Select Service shops updating them on their electronic parts ordering initiative. Here is the bulletin in its entirety: As our electronic parts ordering pilot continues, we wanted to provide you with a brief update and answer some of the common questions we’ve heard so far.
Why is State Farm Getting Involved in Parts Ordering? » State Farm believes
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technology is changing the driving experience and customer expectations. While we don’t know what the future holds, trends suggest changes are ahead for insurers and repairers. State Farm believes our customers will benefit from competitive pricing, high quality parts and a strong parts supply chain for auto repairs. This will ensure that we can work with repairers to fix more cars rather than total them. We understand that
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the ideal ordering solution for repairers will leverage the benefits of technology to provide the opportunity to locate the highest quality parts, at the most competitive prices, as quickly as possible.
Select Service Network » As we introduce electronic parts ordering, it may be helpful to review the tenets of the Select Service program. As you know, the pillars of Select Service are quality, efficiency and competi-
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tive price. Select Service repairers are encouraged to balance these three important considerations in serving our shared customers. The electronic parts ordering pilot does not change the basic components of Select Service; in fact, we believe the process will aid repairers in optimizing performance and repairing more vehicles. Now and in the future, measurements of performance will continue to weigh these important considerations in evaluating repairers, who will continue to manage their performance to demonstrate this balance.
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»| Industry Update |« With several billion dollars of policyholders’ premiums spent on repair costs every year, we continue to manage our business effectively and efficiently by seeking out those repairers who will work with us to meet the needs of our customers.
Electronic Parts Ordering » As you know, State Farm has chosen to work with PartsTrader as a technology vendor for electronic parts ordering in Select Service facilities in four pilot markets. Feedback from these markets continues, and discussion of the
pilot has spread industry-wide. Along with PartsTrader, we are working with many collision industry participants on further development of the application, addressing concerns and making improvements. We look forward to many resulting enhancements. While we believe the pilot demonstrates our commitment to meeting changing marketplace conditions and customer expectations, we also understand that this process has resulted in some misunderstanding and misgivings on the part of many. As a further update, we invite you to consider these common questions and answers.
Frequently Asked Questions Does State Farm see pricing information in the PartsTrader tool? No. State Farm cannot see repairer cost or part margins. How does PartsTrader increase my efficiency when I’ve heard it’s inefficient and actually takes longer to order parts? We believe what you’ve heard is inaccurate. The process to create a quote takes only a few mouse clicks. While there is a waiting period to allow suppliers to submit their available parts and pricing to the tool, that time is not “active” for the repairer, unlike the phone calls, faxes and follow-ups common to the industry today. Like many new technologies, it takes time to gain efficiencies. A racecar may not turn its best time on the first lap. When computerized estimating first appeared in the industry, many thought it would take longer than handwriting an estimate – and for a time, it did. In time, electronic estimating technology increased efficiency. We are convinced that over time, repairers will also gain efficiency with the use of the PartsTrader application. Circle 82 for Reader Service
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»| Industry Update |« How long of a period of time do suppliers have to quote pricing and availability of parts? The default quote time is two hours, although repairers currently can reduce this to one hour. Future enhancements based on feedback from pilot participants will allow repairers even more flexibility. Does State Farm require me to use certain suppliers? No. State Farm will not require Select Service repairers to use a certain supplier and there are no requirements to simply purchase the lowest
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priced parts. The repairer will always maintain control over which supplier(s) is (are) selected for parts purchases. Among the many options available in customizing the tool, you can include or exclude suppliers as you wish, including selecting a single supplier with whom you prefer to do business. Can I use a supplier that is not signed up with PartsTrader? Yes. The application provides an option to send a fax to any supplier(s) you designate. This fax serves as a di-
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rect order for one or more parts from any supplier who does not participate in the program. Will my use of PartsTrader impact my Select Service scorecard? Overall performance of Select Service repairers will continue to be monitored using our existing Repairer Performance Management (RPM) report, which emphasizes quality, efficiency and competitive price. To the degree that repairers utilize the PartsTrader application to improve these elements,
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the technology can improve their overall performance. Can suppliers see one another’s price quote and availability information? No. Suppliers cannot see information beyond what they provide to repairers. Further, repairers can only see the pricing information after the quote period has closed. Protecting the integrity of the quoting process is an important aspect of the program, and at no point does the PartsTrader tool involve a “reverse auction” or bidding process.
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satisfaction by informing and empowering customers to get them back on the road as quickly as possible. The platform harnesses business rules engines, robust data connections and predictive analytics to deliver intelligent and seamless customer solutions. AudaNet solutions serve our clients throughout the automotive claim life cycle – from collision, to appraisal, and through repair or total loss settlement. Delivering maximum customer satisfaction is at the very heart of the AudaNet platform – the most advanced, innovative and intelligent automotive claims and collision repair platform in the world. Audatex 3D Intelligent Graphics offer 360degree rotation, unlimited zoom, colorcoded parts and substrate materials identification, making it fast and easy to create an accurate estimate.
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»| Industry Update |« Auto Body Association of Connecticut Releases Position Statement on PartsTrader he Auto Body Association of Connecticut (ABAC) has released a position statement on State Farm’s PartsTrader program. Here is the statement: The ABAC stands with our brother and sister organizations across the country decrying State Farm’s PartsTrader program. The endeavor is a wolf in sheep’s clothing. It is bad for repairers, part manufacturers, and most importantly, consumers. The only two enterprises in place to profit – and profit handsomely – are State Farm Insurance and PartsTrader. PartsTrader is a Web-based, collision part sourcing, quoting and ordering system. According to its website, “PartsTrader is a tool to improve the collision replacement parts sourcing, quoting and ordering process. We are not a parts retailer. We facilitate the matching of collision repairers with replacement parts suppliers.” Currently, PartsTrader is open only to State Farm Select Service repairers and parts suppliers nominated by Select Service repairers. According to PartsTrader, however, its long-term goal is to make PartsTrader available to the entire U.S. collision repair industry. The idea, as we see it, is to hoodwink the part suppliers and repairers into negotiating away their respective profit margins in the name of greater profits for State Farm. Despite the program being sold as a benefit to repairers and consumers, it quite clearly benefits neither. There are already programs in place to ensure competitive pricing. What PartsTrader does is infuse a grossly inefficient process at the expense of the repairers and OEM vendors. Thus, not only is the program redundant, it is also inefficient. What is more, insurers simply cannot continue to
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draw profits from an already besieged industry without further affecting quality and safety. It just can’t happen. Similar to what is happening in the health care market, the insurer model of perpetually taking in more premiums, while perpetually finding new ways to pay less on claims, is fundamentally corrupting both industries. If State Farm and PartsTrader are successful in penetrating the entire U.S. parts market, State Farm will find itself flush with new profits hot off the backs of repairers, retailers and consumers. It will not take long for the likes of Allstate, Progressive, GEICO and others to follow suit. History and experience have taught us that any time an insurer endeavors to “improve” the auto body industry, bad things happen. Instead of focusing on the business of insurance, State Farm has, once again, taken it upon itself to meddle with the collision repair industry for its own selfish motivations. Insurers should not be involved in collision repair decisions, collision repair standards, setting pricing on repairs or establishing a new system for the sale and distribution of auto parts. None of this relates to the business of insurance. Members of the ABAC and others across the country have unsuccessfully sought to secure the contractual documents detailing the specifics of this plan and respective rights and duties of State Farm, PartsTrader and the participating auto body shops. As with any program of this scope and degree, the devil is undoubtedly in the details. Seeing as the auto body industry had no say in this endeavor, the specifics are being kept from us, and because we know State Farm’s history of selfishly interfering in our industry, we can only presume that what we do not
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»| Industry Update |« yet know is even worse than what we already know. All of the facts, not just those selected by State Farm and PartsTrader, should be on the table. The ABAC surveyed all of its supporting OEM vendors to ask a simple question: Do you intend on participating in PartsTrader? For many of the
reasons articulated in this press release, every OEM vendor, all 76 of them, said they will not. Not one OEM vendor said it would agree to participate in PartsTrader. Indeed, we are unaware of any OEM vendor in Connecticut who intends on participating. Given the origin of the PartsTrader program,
State Farm’s apparent objectives, the obvious inefficiencies and harms caused by the program, together with the litany of problems already experienced and highlighted by industry leaders across the country, the ABAC felt it imperative to interject its voice into the national debate. For all of the aforementioned
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reasons, we write to strongly oppose the PartsTrader program. Further, in light of the long-term damage this program will likely cause our industry, we are respectfully encouraging those of you who have not yet weighed in on this debate to carefully examine the pilot program and voice your opinions.
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»| Industry Update |«
‘That’s Included!’ Calendar Brings Laughs to Collision Repair Industry
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Turning a negative into a positive isn’t always easy, but that’s what a Kansas-based shop owner is striving to do. “But we’re After hearing the same expres- giving you full sions used by clearcoat.” insurance adjusters over and over, he began to store some of these tiresome phrases, such as “We don’t pay for that” or “But we’re giving you full clearcoat,” in the back of his mind and on paper. The once-frustrating expressions suddenly seemed funny, and that’s what sparked his idea for the That’s Included! Insurance Adjuster Quote of the Day calendar. “You’re mad as hell at the time when you hear [those sayings], but later on, we’ll be shaking our heads laughing about how lame some of them are,” he said. The six-day-a-week 2013 calendar features a different caption and corresponding cartoon every day. The stick figure stars of the product are depicted doing quirky things like vomiting in “We don’t pay a toilet or gazing for prime down a and block.” black hole, to emphasize the discontent that some body shop owners experience with adjusters. Between sorting through his hefty backlog of memorable quotes from adjusters and finding a company to publish the product, the creator says the calendar took about eight months to produce. But that’s an effort that he was willing to put forth in order to bring humor to the collision repair industry. The calendar can be ordered online at www.thats-included.com for $19.99 via PayPal.
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»| Industry Update |« 2012 Tom B. Babcox Memorial Scholarship Recipient Announced The Automotive Management Institute (AMI), in conjunction with Babcox Media, recently announced Peter Rudloff, owner of Pete’s Peter Rudloff Garage Inc. in Newark, Del., as the recipient of the Tom B. Babcox Memorial Scholarship. The scholarship recognizes a management-oriented member of the Automotive Service Association (ASA) Mechanical Division. The recipient receives $1,000 to be applied toward expenses to attend educational sessions and view the latest repair technologies and equipment during the Congress of Automotive Repair and Service (CARS), Oct. 1013 in New Orleans. Rudloff has worked in the automotive service industry for 17 years and has been a shop owner for the past 13. He holds several industry certifications and is currently completing the necessary requirements to earn the Institute’s Accredited Automotive Manager (AAM) designation. Rudloff is a member of ASA, where he is currently serving on the national Mechanical Division Operations Committee. When not working in the shop, he contributes his time to various community and industry organizations. “I’m grateful to be selected as the recipient of the Tom B. Babcox Scholarship and to be given this opportunity to improve my management skills,” said Rudloff. “I contribute much of my success to management education and I’m thankful to AMI and Babcox Publications for their continued commitment to education and training.” Circle 92 for Reader Service
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»| Industry Update |« AMI and Babcox Media Announce BodyShop Business Scholarship Recipient Congress & Exposition he Automotive Man(NACE), Oct. 10-13, in agement Institute New Orleans. (AMI) and Babcox Clayton has worked in Media have announced the collision industry for that Tommy Clayton, 25 years and has been a owner of Tommy’s Dent shop owner for the last 13 Service in Gibsonville, Tommy Clayton years. He holds several inN.C., is the recipient of dustry certifications and is currently this year’s BodyShop Business Magcompleting the necessary requireazine Scholarship. AMI and Babcox present the schol- ments to earn the Institute’s Accredited Automotive Manager (AAM) arship annually to recognize mandesignation. Clayton is a member of agement-oriented members of the the National Alliance of PDR TechniAutomotive Service Association cians and ASA, where he is currently (ASA) Collision Division. The recipiserving on the national Collision Dient receives $1,000 to be applied tovision Operations Committee. When ward expenses to attend educational not working in the shop, he consessions and view the latest repair tributes his time to various commutechnologies and equipment during nity and industry organizations. the 2012 International Autobody
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Consolidators Gerber Collision & Glass Opens New Location in Maryland The Boyd Group has announced the opening of a new collision repair center in Germantown, Md. The new repair center is approximately 17,000 square feet in size and will operate under the Gerber Collision & Glass trade name. The Boyd Group now owns and operates eight locations in Maryland, which brings the total number of U.S. locations to 153.
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Caliber Collision has announced that it will double the capacity of its Redlands operations with its move to a new, state-of-art collision repair facility located at 450 Nevada Avenue in Redlands, Calif. The new 71,000 square-foot center features the latest in collision repair technology and equipment, state-ofthe-art customer service systems, and energy efficient, green technologies throughout its operations. The new production facility is twice the size of Caliber’s previous Redlands location. “We’ve only moved a mile-and-a-half away,” said David Goldstein, Caliber Collision vice president of operations, “but this relocation gives us increased capacity to ensure we deliver the highest quality repairs in the industry while quickly restoring Redlands customers to the rhythm of their lives.” “Our Redlands customers should expect a seamless transition to our new location and will continue to benefit from Caliber’s expert auto body repair and finish, quality auto glass repair, free estimates, and a lifetime Caliber Collision warranty on our award-winning work,” said Rusty Rauls, Caliber Collision regional manager for the Inland Empire.
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“The new Germantown center is situated in an attractive location on a main commercial thoroughfare with many auto dealerships in the surrounding area,” said Tim O’Day, president and COO of the Boyd Group’s U.S. operations. “As we continue to execute on our North American growth strategy, this center will serve the northwest Washington, D.C., customers and insurance partners.”
Craftsman Auto Body Opens New Store in Virginia
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Craftsman Auto Body, a third generation, family-owned collision repair operation with nine retail locations across Virginia, recently opened a new 25,000-square-foot location in Warrenton, Va. The new facility, located at 9850 Business Blvd., is centrally located near a major interstate and will enable load-leveling between locations during times of high claims volume. The company also recently expanded its Sterling, Va., facility by 25,000 square feet to better serve its customers and insurance partners. As part of Craftsman’s growth plan, the company has also opened a “Craftsman University” training facility. “This is the final piece of a puzzle that will give us a service offering for the Virginia market that is second to none,“ said Craftsman President Paul Krauss. “Desk review, file jacket audit, SOP training, leadership training and technician training – these are all critical for any organization that wants to be completely self-managed.”
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Service King Acquires 50th Repair Center Service King Collision Repair Centers has completed the purchase of Express Autobody, a collision repair center headquartered in Georgetown, Texas. The transaction is expected to close before Oct. 1, and David Schwartz will manage the new location. Express Autobody becomes Service King’s 50th location in Texas, and its sixth collision center in the Austin marketplace. It is located off I-35 and Westing-
house Road at 300 County Road 111. Service King is also building a new collision repair center in Lakeway, Texas, on Highway 620 that will open in early 2013. Express Autobody is an 18,000-square-foot facility capable of repairing more than 300 vehicles per month and currently employs 16 people. This facility will join Service King’s South Texas market that employs more than 321 people throughout
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Austin and San Antonio. This facility has Enterprise rental cars on-site and uses waterborne paint on all vehicles. Operating business hours are Monday to Friday 7 a.m.-6 p.m. and 9 a.m.-1 p.m. on Saturdays. “Georgetown is a growing area, and we look forward to serving the needs of customers and insurance partners by providing the best service and collision repairs in town,” said Jeremy Lennox, vice
president of Service King’s South Texas market. “We’re eager to provide Service King’s renowned level of friendly and professional customer service. The quality of work by highly skilled and expertly trained body technicians and painters carries a lifetime guarantee. We are also bringing topnotch health, retirement and career benefits to all Georgetown teammates.”
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SEMA News SCRS to Hold RDE Innovation Forum During SEMA During the SEMA Show, the Society of Collision Repair Specialists (SCRS) will feature its second RDE headline presentation, Game Changers - Innovation Forum on Friday, Nov. 2 at 10 a.m. This enlightening session will let attendees into a very personal discussion amongst well-recognized innovators and market leaders who explore the fundamentals of how
they approach innovative thought, and how that translates into workable business models and ideas. Join Randy Stabler (Pride Auto Body, Van Nuys, Calif.), Michael Giarrizzo, Jr. (DCR Systems, Mentor, Ohio), Scott Biggs (Assured Performance Network, Irvine, Calif.) and Gary Wano, Jr. (GW & Son Auto Body, Oklahoma City, Okla.) for a candid dissection of the
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heart of business ideas. While the SEMA Show remains the biggest showcase of automotive innovation and business opportunity, this RDE session will showcase the inner mind of innovation and the root of four very
unique success stories. “I think attendees are going to be in for a mindstretching discussion on the thought processes and general knowledge that go into changing one’s business mindset,” said Giarrizzo.
Five Major Refinish Brands to Sponsor SCRS RDE Program at SEMA Show he Society of Collision Repair Specialists (SCRS) has announced that it has received sponsorship from five major automotive refinish brands for its Repairer Driven Education (RDE) program at the 2012 SEMA Show. Along with PPG, BASF, DuPont Performance Coatings, SherwinWilliams and AkzoNobel, many other industry-related companies, organizations and exhibitors have shown their support for the event. “We have been extremely proud to work with SCRS, sponsoring what we consider to be one of the most relevant and
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»| Industry Update |« inspiring education forums available to the industry,” said Domenic Brusco, senior manager, PPG MVP Business Solutions & Industry Relations. “We are proud to say that PPG customers benefit not only from having the right coatings technology to fit their specific requirements, but that they can also expect a level of service and support that would be expected of a world leader. We believe that supporting SCRS’ RDE program at the highest possible level further amplifies the program and helps us to bring innovation to the surface.” “It has been a very gratifying experience to watch the industry support for our programs grow so much over the past several
years,” added SCRS Chairman Aaron Clark. “As a repairer, I am always excited to attend our event because I have never failed to bring home information
companies and all our attendees who have returned year after year. All of us at SCRS are deeply appreciative of that support from our membership.”
SCRS to Offer Free Vehicle Technology RDE Session at SEMA Show The Society of Collision Repair Specialists (SCRS) will be hosting the Repairer Driven Education (RDE) session, “Is New Vehicle Technology Endangering Your Business?”, at the 2012 SEMA Show from 10 a.m. to noon on Tuesday, Oct. 30. The presenter will be Kim Hazelbaker, senior vice president of the Highway Loss Data Institute (HLDI). This session, which will be free to all pre-registered attendees, will look at the current state of vehicle advancements, both crashworthiness and crash avoidance technologies. Through use of crash test video and real world results,
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that helps my business. As part of the hosting organization, I’ve never been so humbled by the show of support we have experienced from these
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Hazelbaker will outline the state-ofthe-art in safety today and how it’s rapidly changing. “SCRS understands that the industry gathers at annual events like SCRS’s RDE series and the SEMA Show to acquire information that can help them run their businesses and forecast how they need to adapt to remain relevant,” says SCRS Executive Director Aaron Schulenburg. “The dramatic pace at which we’re seeing new technology is perhaps one of the most critical pieces of information our members need to ensure the success of their businesses.”
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Personnel Greg Borst Joins
Urethane Supply Company Sales Team Greg Borst has joined the sales team of Urethane Supply Company, bringing more than 22 years of sales and management experience to his new position as upper Midwest sales representative. Borst, from Fond du Lac, Wis., most recently worked for Fond du Lac Bumper, an auto body job-
ber specializing in aftermarket and recycled crash parts. He worked in sales and managed the company’s bumper recycling department for more than a decade. His previous experience includes owning a body shop. In his spare time, Borst enjoys restoring old muscle cars, fishing and hunting.
Spanesi Americas Appoints New Managing Director
“Greg oversaw the transition to Nitrogen Plastic Welding at Fond du Lac Bumper and is perfectly suited to demonstrate the benefits of this system to shops all over his six-state territory in the upper Midwest,” said Kurt Lammon, president of Urethane Supply Company. “He is a solid addition to our sales team and we’re glad to have him on board.”
Greg Borst
Spanesi SpA has selected Timothy Morgan as managing director to head the new subsidiary Spanesi Americas headquartered in the Chicago area. Morgan's vast knowledge and experience in both the technical and management aspects of the collision repair industry made Timothy Morgan him the top pick in Spanesi SpA's candidate search. With more than 36 years in the collision repair industry, Morgan has held the positions in sales, technical and training areas. He most recently served in managing director positions for international equipment suppliers. He has previous experience as a technician, shop manager, collision repair facility owner and director/educator of a technical college's collision repair training program. Morgan's positions have also given him international experience with projects in both Europe and Asia. "Working internationally, I noticed Spanesi's simple technical approach to equipment and repairs. This, coupled with the passion Orazio Spanesi and his family have for the collision business, has inspired me to head this project. Over the past couple years, I have been looking for that 'new' approach to the collision equipment industry while assisting a companies that needed leadership and stability. I am now proud to be a part of the Spanesi family," said Morgan. Circle 99 for Reader Service
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»| Industry Update |« GFS, Dupont and Champion Team Up for Cromax Pro Experience at SEMA Show Global Finishing Solutions, Dupont Custom Finishes and Champion Compressors have teamed up to bring the Cromax Pro Experience
to the SEMA show in Las Vegas, Oct. 30-Nov. 2 2012. The Cromax Pro Experience will provide attendees the opportunity
to suit up in a state-of-the-art GFS 'Professional' paint booth equipped with AdvanceCure, grab a spray gun hooked up to a Champion compressor system, and spray the latest in Cromax waterborne paints from Dupont. Register online by following this link: http://www. seeuthere.com/SEMA_2012. Demos will occur on each day of the SEMA show, and visitors are welcome to swing by any time to check out what's happening in the paint booth, learn more about the latest products from the three brands and chat with the on-site finishing experts. The GFS/Dupont/Champion Cromax Pro Experience paint booth is located outside the north entrance to the Central Hall, at booth 61080.
ALLDATA Donates More Than $12,000 to Collision Repair Education Foundation
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ALLDATA has donated more than $12,000 to the Collision Repair Education Foundation. The funds will go toward the Education Foundation’s Collision Repair Education Campaign (CREC) fund, which allows the organization to provide its grants, scholarships and the Ultimate Collision Education Makeover school grant. ALLDATA makes a contribution to the Education Foundation for each sale of ALLDATA Collision to facilities that have achieved the I-CAR Gold Class Professionals training designation. “I would like to thank ALLDATA for their continued support of the Education Foundation through this contribution,” said Clark Plucinski, executive director of the Collision Repair Education Foundation. “ALLDATA’s support allows the Education Foundation the ability to provide even more support to secondary and post-secondary collision programs nationwide as their school budgets are being reduced year after year.” Circle 129 for Reader Service »
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PPG Opens High-Tech Color Matching Laboratory
PPG management and employees participate in the ribbon-cutting ceremony for the new automated color matching laboratory in Cleveland, Ohio.
PG management and employees participate in the ribbon-cutting ceremony for the new automated color matching laboratory in Cleveland, Ohio. PPG management and employees participate in the ribbon-cutting ceremony for the new automated color matching laboratory in Cleveland, Ohio. PPG Automotive Refinish has opened an automated, technologically-advanced color matching laboratory in Cleveland, Ohio. The announcement was made by Mary Kimbro, PPG global color director. A formal ribbon-cutting ceremony attended by PPG management and employees took place September 14. The new Refinish Color Matching Laboratory is expected to be fully operational this month. A new level of precision and efficiency has been developed for the laboratory. PPG states that this computer-controlled, hightech facility marks a significant advancement in the science and art of automotive refinish color matching. "The new laboratory is a reflection of our promise to PPG customers to provide the most effective and accurate color matching tools," said Kimbro. "As leaders
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in the industry, we're always looking for innovative ways to enhance the color formulation process and ensure that our customers have the support and benefit of the most up-to-date color technology." PPG says the Refinish Color Matching Laboratory addresses a major challenge the automotive refinish business faces: the growing number of domestic and import OEM color offerings and
variations – including exterior, bumper, accent and underhood colors – and the need for collision centers to match those colors. While an OEM's color code may prescribe a particular paint formulation, the reality is the actual vehicle finish color may differ from plant to plant for any number of reasons. Consequently, color variants are always needed. PPG's laboratory is equipped to produce accurate color formulations through improved processes and procedures. Using electronic and scientific methods made possible through state-of-the-art equipment and proprietary computer software programs, the patentpending automated system is capable of running continuously to produce more color formulations, allowing PPG to provide precise color formulas with operational efficiency. The laboratory's capability also allows PPG to expand its data collection practices, better analyze automotive pigments and explore applicable color formulation opportunities as they occur.
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Honda Launches Collision Information Website for Consumers American Honda Motor Co. Inc. has launched Collision.Honda.com, a new consumer-oriented website dedicated to providing Honda owners with the information they need to make informed decisions regarding collision repair. The site is divided into two main sections. Section one, entitled “Accident Assistant,” covers what to do at the scene of an accident and includes a handy “Accident Checklist” that can be downloaded. Section two, entitled “Collision 101,” includes important information about repairs,
collision parts and insurance. Also included is a glossary of collision repair terms and Honda collision repair position statements. Two videos are included on the site – one regarding wheel replacement, and the other taking a dramatic look at air bags and the importance of their proper deployment. The site also hosts Honda’s body shop locator system containing shops presently on American Honda’s Body Shop Recognition program. To keep consumers returning to the site, American Honda has included a
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section called “News, Views & More,” covering topical news within the collision repair industry that consumers should know about. These stories will be updated on a regular basis. Also included in this section is an Industry Hall of Fame highlighting those businesses within the collision repair industry that perform services for/contribute to charities, assist trade schools, provide scholarships or otherwise provide assistance in their communities. “Our research has shown that most Honda
owners are ill-informed, and in many cases, misinformed, about the collision repair process and what they need to do to exercise their rights and help ensure that their vehicle is properly and safely repaired. We also know they're hungry for information. This website provides a significant step in bringing topical and helpful information to Honda owner,” said Jim Roach, senior vice president for American Honda’s Parts and Service Division. To access the site, go to Collision.Honda.com.
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Matrix System Renews Larsen Motorsports Sponsorship atrix System Automotive Finishes has announced its continued sponsorship and support of Larsen Motorsports and jet car driver Elaine Larsen. Larsen has been a part of the drag racing community for more than a decade. She began racing jet dragsters in 2004 and hasn’t looked back since. Regarded as one of the nation’s leaders in turbine powered race vehicles, Elaine and Larsen Motorsports are among the most requested exhibition jet dragster teams in North America. The jet dragster features a General Electric Model J 85 engine that generates 2,500 horsepower and a Larsen Motorsports custom designed afterburner that adds another 2,500 horsepower. Since 2010, Matrix System has provided its paint products from start to finish to the Larsen Motorsports team. Since then, Larsen has been busy driving two jet cars at drag strips across North America. The team is now on their third generation Embry Riddle jet dragster and they recently announced the addition of Marisha Falk as the newest driver. “Matrix System is a valuable partner for Larsen Motorsports as their superior product line is applied to all of our race cars and transporters," said Larsen. "As our teams travel across the country, the equipment sees all kinds of harsh conditions, and in the motorsports entertainment business, our vehicles have to look perfect every time. Thanks to the durability and unparalleled quality of Matrix System products, that impression is easy to maintain."
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CCC Introduces 'Open Shop' Non-DRP Job Assignment Tool CCC Information Services Inc. announced today the availability of CCC ONE Workflow – Open Shop (“Open Shop”), the industry’s first tool to provide insurance carriers with the ability to electronically send assignments to repair facilities outside of their direct repair program (DRP) network and allow those shops to accept the assignments, create estimates and electronically upload them to insurance carriers. “DRPs have been an important component to the auto claims industry, providing efficiencies in the claim settlement and repair process that help both insurers and repairers get their customers back on the road faster,” said Chetan Ghai, senContinued on pg. 104
Atlas Copco Compressors Launches New Blog Atlas Copco Compressors has launched a new blog – The Compressed Air Blog, the Fifth Utility – to serve as a comprehensive resource of news and insights for compressed air professionals. The Compressed Air Blog is updated regularly with the latest technology, best practices, videos and thoughtstarters that are easily searchable by industry or technology. “We named our blog ‘The Fifth Utility’ as a tongue-in-cheek way of recognizing that our news and insights about the compressed air industry, commonly referred to as ‘The Fourth Utility’ behind water, gas and electricity because of the critical functionality it provides to so many manufacturing processes, is a beneficial resource for readers who rely on compressed air,” said Paul Humphreys, vice president communications and branding for Atlas Copco Compressors, LLC. “Much like a golfer stops in at the
‘19th hole’ after a round to share stories with his or her fellow loopers, our blog serves as a virtual clubhouse for the compressed air industry to talk shop and share information and anecdotal stories about our industry.” The blog also serves as a resource guide for energy-saving tips, sustainable manufacturing
best practices, industry news and links to interesting, relevant articles. Topics include charitable corporate endeavors, sustainable operations, carbon-neutral technologies that support energy-savings, energy audits and customer stories that detail the ways Atlas Copco compressors have made manufacturers more productive.
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»| Industry Update |« CCC continued from pg. 103 ior vice president, products and technology at CCC. “To meet consumer demand for shop choice, carriers and shops must find efficient ways to share assignment and estimate information that does not disrupt their existing workflow or add unnecessary days to the claims process. Open Shop was created to do just that.” Open Shop allows insurers to extend their reach by communicating electronically with repair facilities beyond their DRP program. Insurance carriers can now select from among the industry's most open network. For repairers, Open Shop assignments are received and processed like a DRP assignment,
and are clearly identified in the CCC ONE message center, making it simple to differentiate them from DRP assignments. Open Shop has been in limited release with several national insurance carriers over the past few months. According to John Dalton of Dalton Motors, a repair facility that has worked with Open Shop, “I’m very enthusiastic about the new Open Shop solution. The assignments are clearly flagged as non-DRP, and the process for downloading the assignment and completing the estimate is the same as with my other estimates written with CCC ONE Estimating. Open Shop is a great tool to help our shop capture more business.”
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Island Clean Air has announced that the California Air Resources Board has recently certified the company's Duster 3000 downdraft for sale in California. “This certification represents acknowledgement from a government body that over sees and mandates the strictest air quality standards in North America. It says that we are a safe and environmentally friendly way to remove harmful airborne particulate in the body shop,” said Derrick Swain, vice president of ICA’s auto body division. “While it doesn’t give the Duster a free pass everywhere, it does signify that we have met some very strict standards and hopefully this will allow us to have equally high level discussions in all the different jurisdictions” The product is CSA certified and OSHA compliant, as well as explosionproof and fireproof. It also meets the new 6H rules set out by the EPA. "In essence, it will dramatically add to any body shops productivity by allowing them to bring the prep station to the car. This could certainly change the way body shops do business,” said Swain.
AkzoNobel Sikkens Acoat Selected Releases Three New Training Classes AkzoNobel Sikkens Acoat Selected has released three new training classes. Each class has been approved for I-CAR points through the I-CAR Industry Training Alliance program. The new classes, available to all Acoat Selected members, are as follows: Cycle-Time Processing Reduction (CPR) — focuses on the impact of production management on cycle time. It’s not about workCircle 126 for Reader Service
»| Industry Update |« ing faster or harder. It’s about working smarter. Rules of the Road: Standardization and Visual Management (PCE) — learn how to create and implement standardization and a visual workplace while continuously eliminating waste and variability. PCE Ready — addresses the processes that must be in place to manage every incoming vehicle such that it can flow without delay or interruption through the repair process. “The addition of these classes expands our industry-leading class assortment to 23 courses,” says Barry Rinehart, AkzoNobel North American services manager. “The combination of the Sikkens brand paint technology and our leading edge business education programs and highly skilled Business Consultants that work with our business clients has created metrics of success that exceed industry trends.” For more information about Acoat Selected or distributor and bodyshop training, visit www.acoatna.com.
Sherwin-Williams Releases Fourth Quarter Training Courses Schedule The Sherwin-Williams Automotive Finishes fourth quarter training courses for collision professionals will kick off in October 2012, providing the collision industry with three months of intensive business-building and production-excellence courses via classroom, the Web and hands-on settings. Sessions will be held at numerous Sherwin-Williams Automotive Finishes training centers located in metropolitan areas across the United States. Classes consist of multiple courses designed to increase shop productivity and include sessions focusing on painter certification, AWX Performance Plus waterborne system, color adjustment and blending, commercial fleet refinishing, accurate estimating and workshop efficiency. Sherwin-Williams recently converted all of its hands-on training classes from standard, printed manuals to digital textbooks. Already in place for its series of e-learning courses, the new tablet format has replaced all traditional training manuals. "Converting all of our training manuals from pa-
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»| Industry Update |« per to digital has provided our employees and customers with an enhanced learning experience," says Rod Habel, Sherwin-Williams director of training operations. "It has established Sherwin-Williams Automotive as a category leader in training practices and demonstrated our environmental consciousness by eliminating the use of thousands of pages of paper each year."
Martin Senour Launches Fourth Quarter Training Schedule Collision center professionals who missed training sessions previously offered by The Martin Senour Company will have another chance to further develop both their operation
and technical skills starting in October when the company kicks off its fourth quarter training session curriculum. The fall 2012 course lineup, which is held at various Martin
Senour training locations nationwide, includes an emphasis on sustainable operations from both a business and technical standpoint. “We seek to help collision repair owners, managers and technicians better practice profitable and more productive thinking and hands-on doing,” says Jeff Green, director of sales. “We also have seen significant interest for classes regarding waterborne technologies, application certification and lean
practices, so we’ve provided additional courses specific to those practices.” Martin Senour professionals will be providing instruction on a number of class topics including its VORTEX waterborne, Tec/Base and Pro//Base refinish systems, painter certification, and color adjustment and blending. A complete listing of the second quarter training schedule, course descriptions and training center locations can be found at www.martin senour-autopaint.com.
ADVERTISER INDEX COMPANY NAME
PG. #
AFC Air Filtration Co. 82 Aframe Spray Booths 53 Airomax/U.S.Body Products 46 Airvantage Tools Inc. 80 Alloy Wheel Repair Specialists Inc 98 Amerex Corporation 100 American Family Insurance 71 Anest Iwata USA 29 Atlas Copco Compressors LLC. Front Cover, 81 Audatex 73, 85 Automotive Mgmt Institute 98 Autotron Induction Systems 88 BASF Corporation 59, Outsert Bendpak Insert, 104 Big Sky 95 Blackjack 105 Blair 28 Car Bench America/Phil Little Agency 74 Car-O-Liner Co. 21 CCC Information Services 14-15, 95 Cebotech Inc. 40, 75 Certified Auto Parts Association 19 Chassis Liner Corporation 62 ChemSpec USA 23 Chief Automotive Systems 5 CJJ Inc. 26 Collision Equipment Group 96 Col-Met Spraybooths 36 Crash-writeR 88 Dent Fix Equipment 45 Dent Magic Tools 96 Dominion Sure Seal 38
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COMPANY NAME
PG. #
DV Systems 64, 69 Dynabrade Inc. 97 Eagle Abrasives 27 ECS Automotive Concepts 84 Eurovac 18 Evercoat 3 Extractor 65, 76 Farecla Inc. 4 FBS Distribution Co Inc. 70 Ford Motor Co./Ford Parts 49 Gardner Denver 78 Garmat USA 6-7 Goffs Curtain Walls 103 H & S Auto Shot Mfg Co. 72 Herkules Equipment Corp. 66 I-CAR 9 Induction Innovations 50 Innovative Tools & Technologies, Inc. 37 Island Clean Air 32 Jessen Productions 68 Kaeser Compressors 33 Kayco Spray Booths 94 Lancer Insurance Company 60 Lincoln Electric Co. 35 Lone Star Alliance 92 Malco Products 97 Martech Services Co. 93 Martin Tool & Forge/ Martin Sprocket & Gear, Inc.100 Masters School of Autobody 42 Matrix System Automotive Finishes LLC 48 Maxzone Auto Parts Corp 47 MMLJ, Inc. 77
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COMPANY NAME
Mobile Spray Technology Mo-Clamp/Pull-it Corp. Motor Guard Corp NAPA Nissan Motor Corp. USA NRD LLC PPG Industries Pro Spot International Promotec Spa Reflex Truck Liners Rubber-Seal Products S.A.I.M.A. Of N America Safety Regulation Strategies Sata Spray Equipment Scorpion Truck Bed Linings Sherwin-Williams Company Shop-Pro Equipment Sorbothane, Inc. Steck Mfg Co. Suburban Mfg That’s Included Tite Spot Welders Total Automotive Toyota Transtar Autobody Technologies UCoat It America, LLC UniCure Spray Booths Valspar/Debeer Volkswagen Parts & Accessories Wedge Clamp Systems Inc. Wizards Products/RJ Star Inc. Zendex Tool Corporation
PG. #
30 90 90 91 79 101 Cover 2 - 1 Cover 3 57 86, 87 54 39 93 55 67 43 61 92 94 102 102 99 17 Cover 4 31 58 63 10-11 56 83 41 104
Ideal Air Solution
Product
Showcase Coatings for Custom Looks AkzoNobel has now expanded its Sikkens Autocoat BTLV650 product appeal with Infuse – a collection of three specialty coatings that helps customers within the commercial sector create their own custom look, providing aesthetic appeal and functional enhancement. These coatings include SpeckCoat, ideal for interior compartments and storage areas; FormCoat, a durable option for both interior and exterior areas; and LumiCoat, a semi-transparent, highly reflective topcoat that’s ideal for an enhanced aesthetic look. AkzoNobel www.akzonobel.com Circle 150 for Reader Service
Spot Priming with Good Adhesion Metalux 8852-AER 1K Spot Primer is designed for spot priming of sand-through areas and parts refinishing. This primer provides good adhesion to steel with fast curing and anti-corrosive properties. This product must be primed or sealed prior to topcoating.
LA-MAN Corporation’s Extractor/Dryer is a two-stage filter designed to operate most effectively within 25 feet of the point of use. Each model offers a standard 5Micron rating, with lower ratings available. With flow ranges of 15 SCFM to 2000 SCFM and pressure ratings of up to 250 PSI, the Extractor/Dryer is an ideal solution for an extensive array of applications including air-powered tools, surface preparation, paint spraying, powdercoating and pneumatic-operated equipment. Other standard features of the product include a built-in differential pressure gauge and weep drain. LA-MAN www.laman.com Circle 153 for Reader Service
ChemSpec www.chemspecpaint.com Circle 151 for Reader Service
Low-VOC, Easy Sanding Primer
Discounted PDR Set
The DPLV 2.1 Epoxy Primer line provides excellent adhesion and corrosion resistance to a wide variety of substrates including properly prepared steel, aluminum, fiberglass, rigid plastics and plastic fillers. This low-VOC, easy-sanding primer can also be used as a sealer and coated with many of PPG’s twocomponent urethane undercoats and topcoats. It’s compatible with waterborne basecoats as well. The primer is available in white, gray and black, which can be blended to achieve a broad range of gray shades.
For a limited time, Dent Magic Tools’ Master Set Special No. 1 includes a 60-piece Master Set, a multi-piece accessory pack, glue puller kit, portable reflection light and mini lifter for $1,999 – a $708 savings, all with a lifetime warranty. There is also a 20 percent discount on Unlimited Training Programming with purchase of this set.
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»| Product Showcase |« Heavy-Duty Hand Cleaner Introducing Kresto Cherry extra heavy-duty hand cleaner from STOKO Skin Care. It’s formulated to quickly clean heavy dirt, grease and grime, leaving hands fresh and clean. The cherry fragrance effectively neutralizes and rids the hands of heavy odors, such as petroleum, while skin conditioners keep hands in peak performance under tough conditions. STOKO Skin Care www.stokoskincare.com Circle 155 for Reader Service
New Fuel Delivery Parts Spectra Premium introduces 52 new Fuel Delivery part numbers, providing coverage on popular Hyundai and Kia import applications as well as first-to-market coverage on late model F-Series super-duty trucks and Dodge Sprinter Vans. First to market coverage is also achieved with the Fuel Filler Neck part number FN851, covering late 1990s Jeep Cherokee applications. Spectra Premium www.spectrapremium.com Circle 157 for Reader Service
Get a Booth and a Leather Jacket The limited edition Ringbrothers PERFORMER downdraft spraybooth features custom Ringbrothers Limited-Edition booth graphics and comes complete with an exclusive promotional leather jacket. This fully equipped dual-skin spraybooth is designed for working areas that measure 27’ x 14’ x 9’. It has a downdraft airflow with a high-efficiency directfired heater. Other features include an intuitive AXIOM control panel, a three-wing product door with solid back configuration and a single-row exhaust. The promotional package is valid from Oct. 1 to Nov. 30. Global Finishing Solutions www.globalfinishing.com Circle 158 for Reader Service
Easily Sand Irregular Work Areas New siafleece flex handpads conform to curves or can be formed into a ball-like steel wool, making it easier to sand, cut or clean irregular work areas. They’re recommended for both automotive and industrial settings, especially for surface preparation and finishing. They exhibit a consistent scratch pattern and provide a matte finish on new components, factory primers and varnishes prior to final coating. They can also be used moist or dry, do not clog and last an extended lifetime. sia Abrasives www.sia-abrasives.com Circle 156 for Reader Service
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Ultra Clean, Dry Air The Model 50-WB is designed to work with your existing compressed air source to properly filter and monitor the compressed air for Grade “D” Breathable Air. This 50 SCFM system (also available in 80 SCFM) provides ultra clean and dry air for use in spraying waterborne or solvent-based paints. This system can handle up to two painters at the same time. Martech www.breathingsystems.com Circle 159 for Reader Service
»| Product Showcase |« Monitor Air Quality Martech’s Model 50 Single Line Hose System works with the existing air supply to provide Grade “D” Breathable Air for a NIOSH-approved respirator. With the provided 54-inch tool air hose, it will supply air for a spray gun, all via the included single line hose assembly. Model 50 SL systems are available with 35-inch and 50-inch single line hose assembly. The four-stage filtration filters the air, and the on-board carbon monoxide monitor continuously monitors the air quality for compliance with current OSHA standards. Martech www.breathingsystems.com Circle 160 for Reader Service
Rental Profit Center
Pre-Paint Prep Solvent Ideal for Plastic Parts Rapid Prep is a non-flammable, non-hazardous pre-paint prep solvent ideal for plastic parts. Its formula penetrates deep to eliminate silicone, polymer, wax, oil and grease. Just spray on, wait a minute and wipe off. Rapid Tac www.rapidtac.com Circle 161 for Reader Service
Easily Locate BendPak/ Ranger Service Center BendPak’s enhanced ClickServe Web-based platform allows customers to locate a local BendPak or Ranger service center by navigating to the ClickServe website and entering their U.S. or Canadian ZIP code. This platform delivers customers an independent network of more than 650 service centers across the U.S., Canada and Puerto Rico. BendPak/Ranger www.bendpak.com/Support/clickserve/ Circle 162 for Reader Service
Portable Truck Bed Spray System The GXPro Spray System is an economical machine for applying professional grade truck bedliners. Heated stainless steel tanks, precisionmetered pumps and solid-state electronic speed controls combine into one portable package. It comes with a spray gun and a 25-foot hose. The system offers minimal cleanup – simply undo the gun barrel, discard the static mixing tube, wipe off the tip and move on to spraying your next truck bed. Includes a five-year warranty. Langeman Manufacturing www.langeman.com Circle 163 for Reader Service
Why refer clients elsewhere for a rental car while their vehicle is in your shop? Establish your own rental fleet with the help of Lancer Insurance Company’s commercial automobile insurance coverages and keep the revenues in-house. Lancer Insurance (800) 782-8902 x3027 www.lancerinsurance.com Circle 164 for Reader Service
Cut Paint Usage Up to 35 Percent Wedge Clamp’s NitroHeat extracts 98 percent of nitrogen from the air, then heats and sprays it using lower pressure and conventional equipment. Dramatically reducing overspray and reflection while purifying and heating the delivery stream, NitroHeat shortens drying time and cuts paint usage up to 35 percent – saving body shops $35,000 annually when they typically spend $100,000 on paint. Wedge Clamp www.wedgeclamp.com Circle 165 for Reader Service
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»| Classifieds |«
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
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! Call 888-906-9370 or online at
markingpendepot.com
USED BIG TRUCK PARTS Dismantling Medium & Heavy Trucks. Large stock of Cabs, Hoods, Doors, Fuel Tanks, Farings, Front & Rear Axles, Engines, Repairables
CALL (866) 241-2110 or view at: F R O N T I E R T R U C K PA R T S . C O M
3/8" and 1/2" Diameter heat treated alloy steel slide hammer hooks. 3/8" Diameter right angle hooks now available. Part No’s JR-16R & JR-16RF
Body Shop Tools • 800-423-4692 customerservice@morganmfg.com www.morganmfg.com
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»| Classifieds |« • 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 Order your Wheels at:
www.newwheel.com or 800-486-0931
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
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
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Publisher’s
Perspective Parts Is Parts...
Or Is It?
hen I was first introduced to the automotive business, it seemed things were much more simple. I know that sounds familiar and borders on being trite, but I think in some ways it’s true. Quality parts and price were the main decision points, and those were the battles we all fought. That’s not so today.
W
Last week, I had the opportunity to sit in on the Northeastern Ohio Automotive Service Association (ASA) Town Hall meeting in Cleveland. It was an excellent and well-organized event facilitated by ASA Collision Division Manager Denise Caspersen, and there were many shops, suppliers and dealers in attendance. Why such a broad and complete audience, you might ask? Because the topic was the most controversial issue in the collision market today. That topic is parts procurement and what influence an insurer should have in supplying parts for a repair. Of course, I’m speaking of the State Farm parts procurement program. Parts procurement makes the whole thing sound rather simple, doesn’t it? Well, this issue is anything but simple. (Remember, that’s why I’m writing this in the first place). Electronic parts ordering isn’t
new to this industry. As many of you know, I was involved previously in developing one of the well-known electronic ordering systems in the market today. The basic premise is simple, but the implementation and effect on other aspects of the business are not. I do not intend to explain or defend the current issue in our market in this column. I do intend to urge each of you to read up on the issue and get involved where you see fit. Don’t spend time on the emotional rhetoric being thrown around, but focus on the issues that could affect your business today and in the future. Read everything State Farm has to say to the industry and any communications your business receives from them. Spend time understanding the news about the subject reported from reliable news sources. Finally, pay attention to information sent out by your associations. ASA is an excellent advocate and seems to be doing a great job of communicating information on this parts program. This is a complicated issue and not one that’s likely to be solved quickly. You are all independent business people, and you need to exercise that independence and make good decisions based on sound reasoning. Speak up now while this program is in the formative stages...or get ready to live with what others decide.
S. Scott Shriber, Publisher Email comments to sshriber@babcox.com
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