MAY 2020
SURVIVING THE SHUTDOWN: MN Shops Shine in Dark Times
PLUS: Meet the New AASP-MN Board Members
EXCLUSI BONUS D VE IGITAL CONTEN T
Between Pgs. 10-1 1
Your Champion. Your Ally. www.aaspmn.org
AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 Roseville, MN 55113 Phone: 612-623-1110 Fax: 612-623-1122 email: aasp@aaspmn.org website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. 2020 All rights reserved. Cover image www.istockphoto.com.
AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.
CONTENTS Vol. 29 No. 5
MECHANICAL DIRECTOR’S MESSAGE........................................4 We Are All in This Together by Tony Newman, AASP-MN Mechanical Director
2020 - 2021
LEGISLATIVE UPDATE................................................................6 Uncharted Territory by Kevin Walli, AASP-MN Lobbyist
PRESIDENT Matthew Feehan
LOCAL NEWS ............................................................................8
IMMEDIATE PAST PRESIDENT Carl Thomas
NATIONAL NEWS ......................................................................10
AASP-MN BOARD MEMBERS
SECRETARY-TREASURER Tom Archambault COLLISION DIVISION DIRECTOR Jesse Jacobson MECHANICAL DIVISION DIRECTOR Tony Newman ASSOCIATE DIVISION DIRECTOR Loren Feldkamp
COVER STORY ..........................................................................12 Surviving the Shutdown: MN Shops Shine in Dark Times by Joel Gausten CASH IN ON YOUR MEMBER BENEFITS! ....................................14 C.H.E.S.S. Safety Compliance Services DIGITAL BONUS CONTENT (@ WWW.GRECOPUBLISHING.COM)
COLLISION SEATS Randy Miller Lee Schlosser
DEG Estimating Tips
MECHANICAL SEAT Jeremy Nordgren
Partners in Prevention: Floor Drain Best Management Practices
Insurance I.Q.: Cybersecurity for Small Business
STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc.
UPCOMING EVENTS
June 16 26th Annual AASP-MN Golf Outing Keller Golf Course 2166 Maplewood Drive Maplewood, MN 55109
ADVERTISERS’ INDEX
PUBLISHER Thomas Greco | thomas@grecopublishing.com
AmeriPride ............................................................17
Motorwerks BMW ..............................................IBC
SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com
Axalta......................................................................IFC
MPA ........................................................................10
Buerkle Hyundai..................................................10
Proven Force........................................................OBC
GRAPHIC DESIGNER Lisa M. Cuthbert | lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com
www.grecopublishing.com
Dentsmart ............................................................18 FinishMaster ........................................................9 Inver Grove Honda/Inver Grove Toyota ....17
Reliable Automotive Equipment....................5 Rosedale Chevrolet............................................18
Jack McClard........................................................12
Roseville Chrysler ..............................................17
Keystone ..............................................................8
Straight & Square................................................4
Maplewood Toyota............................................13
Sherwin Williams - Matrix ................................71
Morrie’s ................................................................6
Toyota Group ......................................................15
AASP-MN News
May 2020 | 3
MECHANICAL DIRECTOR’S MESSAGE
We Are All in This Together While preparing a column on a different topic, I, along with everyone else, took a detour into our new COVID-19 reality. In this previously unTony Newman charted territory, what steps are you AASP-MN Mechanical Director taking to deal with our continuously evolving, day-to-day status? It seems like most businesses sent out reassuring emails or posted the same type of messages on social media or websites. Have you updated your customers with any changes since then? Or reached out to remind them that you are still available to service their vehicles? We did an initial email blast listing changes in procedures and newly initiated preventative steps. Our follow-up contact will reassure customers of our continuing availability. Also, we have already prepared a message in the event we have to close completely. How has this coronavirus affected your daily operations, particularly regarding customer contact and staffing levels? To avoid having customers in close proximity to each other, we took our waiting area out of service. With a reduced workload, we can get by with less staff. Have your suppliers changed their services? Our vendor sales representatives are calling us regularly to check-in, rather than visiting in person. Can you think of ways to offer assistance to other shops? If other shop owners are willing to reach out,
4 | May 2020
how could they help you or your shop moving forward? The Alliance has a large pool of shop owners of all sizes, locations and specialties. Alliance members can use our network for ideas and support. AASP-MN hosted two Zoom Mech XChange sessions in April to do just that. A third is scheduled in May. It is important to remember we are all in this together and to help out where we can. Are you finding ways to stay connected to and support your community? In mid-March when Ohio closed its restaurants to dine-in customers, one dealership pledged to regularly order take-out for all employees until the restaurants could resume normal operations. All Alliance shop owners have a great opportunity to take the lead, which is good for right now and can only help you be recognized as a leader in your community moving forward. What other changes to your business do you anticipate in the coming weeks or months? Specifically, do you have improved practices and new policies that can be used going into the future? Are there things you can envision that you will actively want to avoid? What plans do you have for ramping business back up to previous levels? We’d love to hear from you. Please send any ideas, issues or concerns to aasp@aaspmn.org.
AASP-MN News
Start Fixing “The Right Way” Get the
Starter Kit TODAY!
A. Long Life Round Head Cutter B. Flat Head Aluminum Cutter C. Protective Cap D. Cutting Wax E. BTR/BOR Fluid
MEC 600
All Purpose Cutter
A. B.
C.
E.
Wieländer +Schill Designed for the removal of outer panels and laser welds
No heat applied to panels
D. Check out what else RAE has to offer at: https://www.facebook.com /ReliableAutomotiveEquipment/ www.raeservice.com
Reliable Automotive Equipment P (732) 495 - 7900 F (732) 495 - 7904
LEGISLATIVE UPDATE
Uncharted Territory There is not a person or business or government entity in the world that has not been dramatically impacted by the spread of the coronavirus. As Kevin Walli of this writing, the Minnesota legislaAASP-MN Lobbyist ture has passed two measures to cushion the financial impact of the outbreak. The first bill enacted by the legislature and signed by Governor Walz provided $200 million to allow our medical institutions to ramp-up in response to the wave of COVID-19 cases being diagnosed in the state. The second bill provided a safety net for workers and the start of a set of lending programs for small businesses to cushion the financial impact of the general downturn in the economy. Before the virus arrived, Minnesota was looking at a projected $1.3 billion revenue surplus. Now, with the increased expenditures in response to the coronavirus and the downturn in the economy, it seems highly unlikely that the remaining $800,000 of revenue surplus will ever materialize. The state has been steadily building up its “rainy day fund” to cover economic downturns. The arrival of
the coronavirus is much worse than your typical “rainy day.” It’s a deluge that may wear out even the most thoughtfully assembled reserve fund. We have been sorting through the legislative provisions to identify opportunities for auto repair businesses to weather this storm. Whether it’s in the area of unemployment insurance or small business loans, we will continue to look for relevant provisions that may help you manage your business through these difficult times. As for the 2020 legislative session, the session was put on hold in mid-March – and scheduled to return in mid-April. It is not certain exactly when the legislature will reconvene and how it may be configured in a time of “social distancing.” For the one-day session, which was held to provide the state COVID-19 Response Bill, legislators were spread out throughout the chambers, gallery and nearby meeting rooms in order to avoid spreading the virus. Votes were taken in a relay, of sorts, with members being called down from the galleries and into the chambers to cast their votes. We expect the legislature will have at least one more bill to fine tune the response to the coronavirus. Continued on page 17
124 Osseo Ave N • St. Cloud, MN 56303
THE GENIUS OF SMART WELDERS!
6 | May 2020
AASP-MN News
A SYSTEM
R EBO OR N w it h e v er yt hing y ou u a s k ed f or in a r e f inish s y s t em – c olor c onsis t enc y and t ools .
M AV ER IC K AP P R OV ED . R EQ UE S T A D EMO MO , V ISI T MA AT TRIXSYSTEM.COM
LOCAL NEWS AASP-MN Is Working for You The disruptions to “normal” life caused by the coronavirus pandemic over the past month and lasting into the foreseeable future have left all of us uncertain and on edge. This is particularly true for owners of auto service and collision repair shops who are concerned not only about the health and safety of their own families, but that of their employees and the communities they serve. Add to that, worries about downturns in business and how to stay compliant with new and ever-changing government requirements and things can get pretty overwhelming. This is exactly the situation where your industry association is more important and valuable than ever before. AASP-MN has been at the front lines on behalf of its members and the industry to advocate, protect and inform during this time of crisis: • Within two hours of Governor Walz’s press conference an-
8 | May 2020
nouncing the stay-at-home order, AASP-MN sent an e-mail to members to help them understand what the order meant for their auto repair business. • We’ve scoured all of the various legislation and other measures taken by the government, condensed the information to what’s relevant to members and then communicated it through weekly updates. • We’ve held three member roundtable discussions via Zoom during April to help members share and discuss the impact on employees, shop practices, marketing, finances and the like. They’ve appreciated the opportunity to connect and learn from each other. • We’ve hosted a free webinar, “How to Market Your Shop During a Crisis” to help members understand why and how to market the right way during a crisis. • We’ve connected members with resources to help them make
AASP-MN News
changes to their business practices to ensure the health and safety of their employees and customers. • And we’ve fielded dozens of calls each day, answering member questions and providing support where needed. The benefits of association membership remain unchanged and have become even more important during this crisis. We can help you move forward by providing access to “need to know” information and education, connecting you with your peers to share experiences and lessons learned and reducing your costs with our member benefit programs. We are here to help and will continue to be your champion and your ally.
KS95 “Open for Business” Features AASP-MN The April 16 edition of KS95 radio’s “Open for Business” spotlight featured
AASP-MN’s Executive Director, Judell Anderson. Judell took the opportunity to remind listeners that independent auto service and collision repair shops remain open and are ready to serve. Judell outlined some of the innovative ways that shops have adapted their business practices to protect employees and continue to serve their customers safely during the coronavirus crisis. She also reminded listeners that, despite the fact that a vehicle may be driven less frequently, ongoing maintenance and repair is necessary to ensure that it runs safely and dependably when it is needed. She urged car owners to get needed maintenance and repair work done now – when the pace of life is slower – and support their locally-owned auto service or collision repair shop at the same time. The spot can be heard at podmn.com/ episodes/1037937.
Meet the New AASP-MN Board Members A message from Jeremy Nordgren, Nordgren Automotive, Medina Mechanical Seat I own and operate Nordgren Automotive in Medina, which I started from scratch out of my garage 11 years ago. I’ve always been passionate about vehicles. Since I was a kid, I’ve enjoyed the old muscle car era. From about 14 years old — and still to this day — I’ve had a passion to learn about not only the new technology, but the old as well. I am a graduate of Hennepin Technical College’s Auto-
Jeremy Nordgren
Lee Schlosser
motive Service program and now want to learn how to do body repair work, so I can restore and build old cars. I still get my hands dirty every day and spend half of my time in the shop doing what I love — working on cars. I also enjoy coaching and teaching my employees and watching them grow, as it is rewarding for all of us. I’m happy to serve on the AASP-MN Board of Directors because I feel that it is a great way to help give back to better the industry. I have been a member of the Alliance since 2015, serving on its Mechanical Advisory Committee. I believe I can be an asset as a Board member because I typically have a different perspective from traditional shop owners, which will help with the ever-changing industry in the years to come. My wife Elizabeth and I currently have a Saint Bernard and a cat. On the weekends you can usually find me on the porch stoking the fire in the smoker as I continue to perfect my barbecue ribs and brisket.
have been working in the trade for 30 years. My key to success is being persistent and having a sense of humor. I am active in my local Chamber of Commerce and am an officer in the Knights of Columbus as a fourthdegree member. I was also recently appointed a trustee of St. Peter and
Paul in Loretto. My 12 siblings and I grew up on a dairy farm in Loretto, where I continue to live today with my wife Paula of 23 years. We have one son and two grandsons. In addition to spending time with family, my hobbies include mountain skiing, restoring vintage tractors, camping, fishing and hunting. I have been a member of AASP-MN since 1999 and have served on the Collision Advisory and Legacy Committees. Seeing the value in the AASPMN, I am excited to be a part of the Board of Directors.
WELCOME NEW MEMBER:
APRIL 2020 10 Star Auto Clinic, Wadena
A message from Lee Schlosser, Autoworks Collision, Rockford – Collision Seat I have been an owner and production manager at Autoworks Collision in Rockford for the last 25 years. I am a graduate of Dunwoody College and
AASP-MN News
May 2020 | 9
NATIONAL NEWS
Auto Care Deemed Essential As the nation’s leaders considered emergency measures to protect the American people from the spread of COVID-19, AASP added its voice to those of other industry organizations urging government entities to deem vehicle repair and supply entities “essential” businesses. The correspondence, directed to the National Governors Association, the U.S. Conference of Mayors, the National Association of Counties and the National League of Cities, stated: “In addition to gas stations, it is imperative that motor vehicle supply, motor vehicle repair and related facilities be encouraged to support the safe and efficient operation of transportation services. Community members providing critical care and services should be assured they won’t be impeded by a flat tire or vehicle problems that could be quickly addressed by motor vehicle care professionals. Our industry stands ready to help ensure aid can reach the places it is most needed.” Subsequently, the Department of Homeland Security released a memorandum on March 19 entitled “MEMORANDUM ON IDENTIFICATION OF ESSENTIAL CRITICAL INFRASTRUCTURE WORKERS DURING COVID-19 RESPONSE” that includes a list of Essential Critical Infrastructure Workers “to help State and local officials as they work to protect their communities, while ensuring continuity of functions critical to public health and safety, as well as economic and national security.”
10 | May 2020
Of major importance to the auto care industry, the document includes the list of workers that are considered essential: “Automotive repair and maintenance facilities” and “Employees who repair and maintain vehicles, aircraft, rail equipment, marine vessels and the equipment and infrastructure that enables operations that encompass movement of cargo and passengers.”
UFG Offers Payment Flexibility for Policyholders Affected by COVID-19 AASP preferred provider United Fire Group Insurance (UFG) takes pride in offering simple solutions for complex times. As the entire country unites to fight the novel COVID-19 pandemic, times certainly don’t get much more complex than they are today. During this unprecedented health crisis, be assured of one simple truth: UFG is here for its customers. Policyholders facing financial hardships caused by steps to slow the spread of COVID-19 are encouraged to call UFG’s billing office at (800) 637-6309 to start a conversation. UFG teams are closely monitoring Department of Insurance (DOI) regulatory updates that may offer additional support. UFG is built upon fundamentals of trust, keeping promises and treating people the right way. That foundation never waivers, especially in trying times like these.
AASP-MN News
Floor Drain Best Management Practices Many auto shops have floor drains to catch snowmelt and wash water from vehicles. When you factor in the potential for oils, chemicals and sediments to enter the drain, you have the recipe for a waste that can be difficult to manage. By following floor drain best management practices, you can simplify waste management and reduce risk to employees and the environment. It is common for floor drain systems to include trenches, also known as a sediment trap, and an oil/water separator, also known as a flammable waste trap, to segregate these wastes. While sludge collected in the drain may appear to be mainly sand or grit, it may not be assumed to be clean dirt and is a solid waste. Wastewater includes all liquids in your floor drain after sludges and oils have been removed. You can assume that sludge and wastewater are non-hazardous only if you follow best management practices. These include:
• If you are connected to a city sanitary sewer, notify the city’s sewage treatment plant (Publicly Owned Treatment Works or POTW) operator about your floor drain wastes and comply with any conditions required by the POTW. • If you have a septic system, collect all floor drain waste in a holding tank and ensure that no floor drain waste is discharged to the septic system or to the grounds outside the building. • When using aerosol-dispensed solvents or degreasers, clean parts over a drip pan, not the floor. Transfer drippings immediately to a closed waste container and, if hazardous, manage according to hazardous waste storage requirements. • Use a drip pan when changing vehicle fluids. Manage motor oil, brake fluid, transmission fluid and other oily wastes as used oil. • Use a dry sweeping compound or other sorbent to clean up spills instead of hosing floors down. (Remember that used floor dry, socks and other sorbents contaminated with used oil or fuel should not go in the trash and should be managed as an oil-related waste.) • Clean up spills immediately, even small ones. Make sure you have spill control equipment readily available and perform required emergency planning for your hazardous waste generator size. • Store liquid chemicals, fuels or oils in closed containers labeled with their contents. Store flammable chemicals in a fire-resistant cabinet with integral containment.
• Keep liquid waste containers closed. Ensure that potential leaks cannot reach your floor drain. Follow applicable requirements for hazardous waste accumulation. • If you wash vehicles, post signs prohibiting engine washing by employees and customers and immediately stop anyone washing engines. Management Options for Floor Drain Wastes If you’ve followed best management practices you can assume your sludge is non-hazardous. Sludge can be dewatered in your floor drain system and the solids disposed as industrial solid waste. You may land apply it at your site or another site only if you follow requirements for land application. It can also be managed as a used oil-contaminated waste. Non-hazardous wastewater can be discharged through a sanitary sewer to a POTW. Notify the POTW and comply with any reporting or testing they require. You can accumulate wastewater in an onsite holding tank before transporting it to a POTW that has agreed to accept the wastewater. Or you may land apply it at your site or another site if you follow requirements for land application. Floating oils can be managed as used oil. If not managed as an oily waste, you need to evaluate them to determine if they are a hazardous waste. By following best management practices for floor drains, you’ll have cleaner, safer floors and may reduce maintenance costs from cleaning out trenches and servicing your flammable waste trap. See the MPCA’s factsheet on floor drains, separators and traps and holding tanks (search for w-hw4-18) for links to more information on managing oily wastes, accumulating hazardous wastes, emergency planning and land application.
AASP-MN News May 2020 DIGITAL BONUS CONTENT
|
D1
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
PARTNERS IN PREVENTION
Cybersecurity for Small Businesses Courtesy of CBIZ High-profile cyber attacks on companies such as Target and Sears have raised awareness of the growing threat of cyber crime. Recent surveys conducted by the Small Business Authority, Symantec, Kaspersky Lab and the National Cybersecurity Alliance suggest that many small business owners are still operating under a false sense of cybersecurity. The statistics of these studies are grim; the vast majority of U.S. small businesses lack a formal internet security policy for employees, and only about half have rudimentary cybersecurity measures in place. Furthermore, only about a quarter of small business owners have had an outside party test their computer systems to ensure they are hacker proof, and nearly 40 percent do not have their data backed up in more than one location. Don’t Equate Small with Safe Despite significant cybersecurity exposures, 85 percent of small business owners believe their company is safe from hackers, viruses, malware or a data breach. This disconnect is largely due to the widespread, albeit mistaken, belief that small businesses are unlikely targets for cyber attacks. In reality, data thieves are simply looking for the path of least resistance. Symantec’s study found that 40 percent of attacks are against organizations with fewer than 500 employees. Outside sources like hackers aren’t the only way your company can be attacked—often, smaller companies have a family-like atmosphere and put too much trust in their employees. This can lead to complacency, which is exactly what a disgruntled or recently fired employee needs to execute an attack on the business. Attacks Could Destroy Your Business As large companies continue to get serious about data security, small businesses are becoming increasingly attractive targets—and the results are often devastating for small business owners. According to the Kaspersky Lab, the average annual cost of cyber attacks to small and medium-sized businesses was over $200,000 in 2014. Most small businesses don’t have that kind of money lying around, and as a result, nearly 60 percent of the small businesses victimized by a cyber attack close permanently within six months of the attack. Many of these businesses put off making necessary improvements to their cybersecurity protocols until it was too late because they feared the costs would be prohibitive. D2 |
10 Ways to Prevent Cyber Attacks Even if you don’t currently have the resources to bring in an outside expert to test your computer systems and make security recommendations, there are simple, economical steps you can take to reduce your risk of falling victim to a costly cyber attack: • Train employees in cybersecurity principles. • Install, use and regularly update antivirus and anti spyware software on every computer used in your business. • Use a firewall for your internet connection. • Download and install software updates for your operating systems and applications as they become available. • Make backup copies of important business data and information. • Control physical access to your computers and network components. • Secure your Wi-Fi networks. If you have a Wi-Fi network for your workplace make sure it is secure and hidden. • Require individual user accounts for each employee. • Limit employee access to data and information, and limit authority to install software. • Regularly change passwords. In addition to the listed tips, the Federal Communications Commission (FCC) provides a tool for small businesses to create and save a custom cybersecurity plan for your company, choosing from a menu of expert advice to address your specific business needs and concerns. It can be found at fcc.gov/cyberplanner. Your Emerging Technology Partner A data breach could cripple your small business, costing you thousands or millions of dollars in lost sales and/or damages. CBIZ has the tools necessary to ensure you have the proper coverage to protect your company against losses from cyber attacks. For more information, contact Brad Schmid at (763) 549-2247.
AASP-MN News May 2020 DIGITAL BONUS CONTENT
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
INSURANCE I.Q.
All Three Systems – Steering Column Inspection: CCC: Many vehicle manufacturers use collapsible steering columns to absorb energy sustained from a collision impact. These columns should be inspected for proper length, binding and deformation among other specific considerations. Failure to do so may prevent proper operation of steering column and/or airbag deployment. MOTOR recommends following vehicle manufacturer’s guidelines for inspection and replacement of these components. Audatex: Inquiry 15922 on a Subaru states, ”The Audatex labor allowance does not provide time to perform an inspection for the STEERING COLUMN.” Mitchell: Inquiry 15921 “Mitchell does not develop or publish labor allowances for Steering Column inspection. Please reference Air Bag/SRS Component Inspection and Replacement Tables.” Some OEM procedures may require the steering column to be removed from the vehicle for measuring and inspection. This process may not be included in published R/I times. Please reference the OEM information regarding removal, measurements and one-timeuse hardware. Audatex: Sandwiched Sheetmetal Layers – Recent update to Audatex DBRM Guide Page 48 section 4-3 specifies: “Any sheetmetal damage occurring during the separation of sandwiched panels is not included in Audatex provided labor values and would be a manual consideration.” All Three Systems: Welding Equipment Set Up/Test Weld – Some OEM repair procedures may indicate various welding techniques in different areas of the repair for a single component. Examples may include a single or combination of STRSW, MAG, MIG or CuSi Braze welding. Consideration to set up and perform a destructive test weld on a single type of weld or multiple weld types may NOT be included in published labor times. CCC/MOTORS Labor Time premise states: “Welder set-up or preparation” is NOT INCLUDED. Audatex DBRM Page 44 Section 4-2 Labor Exclusions “Setup of welding equipment, welding materials and/or test welding.”
Recent Mitchell Inquiry 15359 states “We do not provide information regarding the performance of destructive weld testing. This will be reviewed for consideration in future Procedure Page updates.” CCC: R1234YF AC Systems – CCC/MOTORS has confirmed that for the majority of vehicles utilizing R1234YF AC Systems that 1.4 hours Evacuate and Recharge + .4 hours Refrigerant Recovery labor is sufficient. According to the “Guide to Estimating: AIR CONDITIONER,” “LABOR TIME DOES NOT INCLUDE: • Cost of refrigerant & oil or test for leaks.” • The maintenance and cost of the A/C machine is not included in the estimated labor time. Mitchell: Additional Related Refinish Material Calculations Auto Paint Materials Calculation: • De-nib and Finesse, Finish Sand and Buff and Mask for Overspray, while coming on the estimate as a “Refinish” Labor Type, do not contribute to the materials calculation when using the “Rates” method. • While those operations use materials, it is not at the same cost level of primers, hardeners, paint etc…as are applied automatically within UltraMate for core refinish operations. There are two paths available to the estimator for the application of additional related material costs, as needed: 1. Refinish Materials Calculator (RMC) product provides a separate dollar amount for De-nib and Finesse or Finish Sand and Buff. • This product is available as a stand-alone or as a Value Added Feature capability that can be enabled within UltraMate. • RMC will also be an available option in Cloud Estimating (MCE) in the future. 2. These costs may also be added as manual line/s and/or Reference Sheet “Additional Costs & Materials” entries.
Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view these tips and others on the DEG website, DEGWEB.ORG.
AASP-MN News May 2020 DIGITAL BONUS CONTENT
|
D3
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
ESTIMATING TIPS
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
NATIONAL NEWS
www.langmarketing.com
Auto Parts Store Battle Big changes are sweeping across the population mix of automotive jobbers and retail auto parts stores as they battle for Do-It-Yourself (DIY) and Do-It-For-Me (DIFM) product sales in the U.S. aftermarket. Although the combined number of auto parts stores (jobbers and retail auto parts stores) has increased, the populations of jobbers and retail auto parts stores are moving in opposite directions. Auto Parts Stores: An Overall Category Auto Parts stores are outlets for which automotive products comprise virtually all of their sales (DIY and DIFM). Auto parts stores include two competing major groups of automotive parts outlets: Automotive jobbers and retail auto parts stores. Competition between these two outlet groups has increased as retail auto parts stores have expanded their share of the fast-growing DIFM parts market. Automotive Jobbers Automotive jobbers are part of the traditional distribution channel in which manufacturers sell to warehouses, who distribute to jobbers, who in turn sell parts to installers (service outlets and Do-ItYourselfers). This three-step distribution (involving warehouses, jobbers and installers) generates the majority of traditional channel sales. However, a growing share of traditional channel sales follow a more streamlined two-step distribution pattern. Two-Step Traditional Distribution There are two types of two-step traditional distribution. One form of two-step traditional distribution involves jobbers buying direct from manufacturers, rebuilders and other businesses (bypassing warehouses) and selling to end-users. In another version of two-step traditional distribution, warehouses sell direct to end-users (bypassing jobbers). D4 |
Retail Auto Parts Stores Retail auto parts stores generate most of their volume (which is dominated by several large chains) from the DIY aftermarket sector. Retail auto parts stores participate in the integrated distribution channel in which product ownership does not change hands from the time products are purchased from manufacturers to their sale to installers (DIYers or DIFM outlets). In the integrated channel, company-owned warehouses purchase products direct from manufacturers and distribute them to company-owned stores for sale to installers. Fewer Jobber Outlets Automotive jobbers are declining in number. As a result of growing aftermarket competition and changing distribution channel strength, the jobber store population fell at more than a 2.5 percent average annual pace between mid-year 2000 and July 2014. Jobber Population Decline Rate Slows Since 2014, the rate of jobber store closings in the U.S. has slowed. While Lang Marketing has not finalized its official jobber 2019 count, it estimates the annual rate of jobber store closings from 2014 to 2019 averaged less than one percent. Falling Jobber DIY Share Jobbers represent a diminishing portion of DoIt-Yourself (DIY) automotive product sales. Jobbers generated approximately 17.5 percent of light vehicle DIY product volume in the U.S. during 2009. Over the next 10 years, jobber DIY sales share declined. Lang Marketing estimates jobbers generated less than 14.5 percent of 2018 automotive DIY product sales in the U.S. Jobbers’ share of the 2019 DIY auto parts market was even lower. Retail Auto Parts Stores Expand Over 1,700 retail auto parts stores were added nationwide between 2009 and 2016, while the jobber store count fell by approximately 400. Retail auto parts stores have continued to increase in number over the past three years, up an estimated 400 outlets during 2017 to 2019. Retail Auto Parts Stores Target Commercial Sales Retail auto parts stores have expanded their overall aftermarket sales by developing profes-
AASP-MN News May 2020 DIGITAL BONUS CONTENT
Do-It-For-Me Market Growth While DIFM market expansion would seem to favor jobbers more than retail auto parts stores, the opposite has occurred. Retail auto parts stores, through their aggressive commercial programs, are growing in outlet count while the jobber store population is declining (although at a diminishing annual rate). As a result, the retail auto parts stores and jobber populations are moving in opposite directions. Six Major Takeaways: • There has been a dramatic shift in the population mix of auto parts stores (jobbers and retail auto parts stores). • Jobber locations declined at a 2.7 percent annual average pace between 2000 and 2014. However, jobber store loss in the U.S. slowed to one-third of that pace over the next five years. • As the jobber population fell by approximately 600 between 2009 and 2019, over 2,100 retail auto parts stores were added nationwide. • The expanding number of retail auto parts stores is being driven, in large part, by their increasing commercial auto parts business (sales to professional installers). • Despite the declining jobber population, the growth of retail auto parts stores has enabled the total number of auto parts stores (jobbers and retail auto parts stores) to climb more than four percent over the past 10 years. • Lang Marketing estimates retail auto parts stores increased their share of auto parts stores in the U.S. by more than one-quarter between 2000 and 2019.
Millennials Embrace Vehicle Leasing Sharing is a core value of the Millennial generation (Americans born between 1980 and 2000) and a primary motivation for much of their behavior. Their view of vehicle ownership will influence and change the automotive aftermarket in the coming years. Six Major Takeaways • The over 87 million Millennials in the U.S. comprise the largest generation in U.S. history. The 2008 Great Recession and the burden of
student loans has made Millennials more inclined to share things rather own them. • Many Millennials find vehicle leasing very appealing since it gives them access to new vehicles without the burden of ownership. • Increased vehicle leasing, fueled by Millennials, will lead to an unprecedented growth in the used vehicle market (as vehicles come off lease) over the coming years. • Vehicle leasing boosts dealer repair volume be cause leased vehicles are more likely to be re turned to dealers for service and vehicles coming off leasing provide a reconditioning market for dealers. • Lang Marketing estimates that over $25 billion in parts and labor will accrue to dealers over the next five years for the repair and maintenance of leased vehicles and the reconditioning of offlease vehicles for resale. • When dealers sell used vehicles (many of which have come off lease), they can promote their bays as a service resource for these vehicles, retaining these buyers as dealer bay customers.
SUBSCRIBE TODAY to
the official publication of AASP-MN / the Alliance!
Copy & paste the following link into your browser or click the logo up top to begin receiving print copies of AASP-MN News in your mailbox every month!
https://forms.gle/ ipnVyZzeLMYcoZvS7
AASP-MN News May 2020 DIGITAL BONUS CONTENT
|
D5
DIGITAL BONUS CONTENT - EXCLUSIVELY ON GRECOPUBLISHING.COM
sional installer programs to capture an increasing portion of the growing commercial auto parts market (sales to professional installers).
CUSTOMER SATISFACTION IS OUR TOP PRIORITY. PARTNERS OFFER DEDICATED WHOLESALE CALL CENTERS. OVER 50 DELIVERY VEHICLES WITHIN PARTNER NETWORK. ALL PARTNERS OFFER TECHNICAL SUPPORT FOR ASSOCIATE VEHICLES.
Toll Free 800-238-6664 Direct 651-423-2432 Fax 651-423-2808
Toll Free 800-537-6072 Direct 651-204-4610 Fax 651-256-9258
Toll Free 800-569-5735 Direct 763-424-3472 Fax 763-424-4631
Toll Free 800-448-5912 Direct 952-435-8401 Fax 952-435-8515
Toll Free 800-642-2654 Direct 952-947-5432 Fax 877-947-5479
Toll Free 800-661-4765 Direct 952-895-9514 Fax 800-661-4768
Walser Nissan - Wayzata Toll Free 800-328-9552 Direct 651-484-8888 Fax 877-593-2526
Toll Free 800-592-9514 Direct 651-484-0975 Fax 651-484-1970
Toll Free 800-328-3551 Direct 952-475-1721 Fax 952-475-2024
Mark Bowman
SUPPORTING MEMBERS OF
Toll Free 888-483-8840 Direct 651-484-0962 Fax 651-490-6674
PROUD SUPPORTING
MEMBER OF
by Joel Gausten
COVER STORY
Surviving the Shutdown: MN Shops Shine in Dark Times Although these are not comfortable times by any means, all is not lost. This is the prevailing sentiment among members of the Alliance community as they work to overcome the realities of the corovavirus pandemic. With current circumstances drastically changing how shops conduct their day-to-day business, many owners are relying on out-of-the-box thinking to connect with the motoring public. This is especially true for AASP-MN Immediate Past President Carl Thomas, owner of Lancer Service in St. Paul. Recently, his shop created a fun, must-see Star Wars-themed promotional video for its YouTube page to promote the extra steps he and his crew are taking to help keep customers safe. The
12 | May 2020
idea for the video came from Thomas’ wife, Angie, who handles the shop’s social media activities. Not surprisingly, the clip has resulted in considerable consumer engagement – even in these uncertain times. “For something that’s free, it’s been a really good way to keep in front of our customers and let them know that we’re being as socially responsible as possible and have a little bit of fun, too,” Thomas says. Fortunately, Thomas’ operations have also been able to thrive these days thanks to a focus on diversification. His second business, CJTunes, provides builds and custom calibration and tuning for late-model General Motors performance cars. He already had customer-pay work at this facility scheduled out a good two
AASP-MN News
to three months before the crisis hit, allowing him to make up for decreased jobs coming in on the auto service side. At the time of this writing, Thomas and his crew were fortunate enough to maintain a heavy schedule. “This is the most I’ve ever worked! Overall, morale has honestly been better than I expected.” Similar good news can be found at Auto Works Automotive Service Center in Woodbury, where owner Wayne Watson and his crew have made the best of the new demands facing them. “Our saving grace was that we offered to do at-home pick-up and delivery. On average, we’ve probably been doing five cars a day where we actually go to the customer’s house and pick the vehicle up, do the repairs and bring it back.”
Continued on page 16
AASP-MN News
May 2020 | 13
COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES, INC. (C.H.E.S.S.)
AASP-MN and CHESS Team Up to Offer Members Safety Compliance Services
provides support 24/7 if you cannot locate one. SDSLinks is available exclusively to AASP-MN members for $300 per year.
Complete Health, Environmental & Safety Services, Inc. (CHESS) offers AASP-MN members a 20 percent discount on the following services: Right to Know (RTK)/Hazard Communication You must train employees before they start work and annually. You must have a written program. CHESS’ Right to Know Written Program and Training Guide is customized for your facility, whether you offer collision or mechanical repair. The written program and training guide is available exclusively to AASP-MN members for $300. Safety Data Sheet Management As part of the Right to Know/Hazard Communication OSHA law, you must provide your employees access to Safety Data Sheets (SDS) for the products in your shop. CHESS’s SDSLinks, an online SDS management tool, makes them easy to find. CHESS also
Safety Reminder Posters OSHA has some regulations, such as walking and working surfaces and ladder use that require training. Keeping safety in front of employees on a regular basis is one way to help reduce injuries. CHESS will email you a poster on a different topic each month relating to safety issues found in your shop. You can post it or review it with employees in a shop meeting. The Safety Reminder Posters program is available exclusively to AASP-MN members for $240 per year. All of these services can be bundled for a fee of $800, with annual renewal of the SDSLinks and posters for $525. In addition, CHESS offers up to one hour of free phone consultation to any AASP-MN member with safety or environmental questions. For more information, contact Carol Keyes at (651) 481-9787 or carkey@chess-safety.com.
AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums.
LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.
WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful EMPLOYEE BENEFITS Business Planning Professionals Marketing (RPM) is an all-in-one program that bundles your Contact: Dennis Begley website, pay-per-click, search engine optimization, social media, 612-308-6577 / dennis@begley-group.com and much more! With five levels of RPM to match your budget, Business Planning Professionals will provide AASP-MN members goals, and competition, it’s built to drive your shop forward! with quotes from multiple carriers for life insurance, health Net Driven insurance, long-term care and disability insurance. Contact: Rich Mullen EMPLOYEE VOLUNTARY BENEFITS 877-860-2005, ext. 224 / rmullen@netdriven.com Colonial Life Net Driven is a market leader in website and internet Contact: Deb Ferrao marketing solutions designed exclusively for the automotive 612-600-4135 / deb.ferrao@coloniallifesales.com industry. AASP-MN members who choose Net Driven are or Tracy Bailey eligible for a $500 discount off their 1st year setup fees. 612-801-0139 / tracy.bailey@coloniallifesales.com Dedicated representatives can help members transform INFORMATION PROVIDERS Mitchell1 their benefit package with competitive rates, value added Contact: Mitchell1 Representative services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell to create a plan to fit everyone’s needs. 1’s ProDemand, Manager SE & Teamworks products. For more information, contact Customer Service at 888-724UNIFORM & LINEN SUPPLIES AmeriPride Services 6742, ext. 6986. Contact: John Majchrzak Mitchell International 612-670-4034/ majchrzak-john@aramark.com Contact: Mitchell International Representative Discounted pricing to members on rental of uniforms, 800-238-9111 entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ their business with AmeriPride each year. products-services/collision-repair-shop-solutions/cloudCREDIT CARD PROCESSING estimating for more information. Association BankCard Services Contact: Mac Hardin TECHNICAL INFORMATION HOTLINE IDENTIFIX 952-933-2026 / mach@retailfinancialservices.biz 800-288-6220 Competitive rates for AASP-MN members. Terminals and Members enjoy discounted prices on the industry’s #1 printers sold at cost. Monthly rental of equipment is also technical information hotline, Direct-Hit. available.
14 | May 2020
AASP-MN News
AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. (CHESS) Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.
WHY GENUINE PARTS? It’s the Right Thing to Do
You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Inver Grove Toyota 1037 Highway 110 Inver Grove Heights, MN PH: 651-306-4630 FAX: 654-457-8705 www.invergrovetoyota.com
Burnsville Toyota 14730 Buck Hill Road Burnsville, MN 55306 800-448-5912 PH: 952-435-8401 FAX: 952-435-8515
parts@invergrovetoyota.com
Maplewood Toyota 2873 Highway 61 Maplewood, MN 55109 PH: 651-490-2648 FAX: 651-490-2652 TOLL FREE: 877-574-0667 parts@maplewoodtoyota.com
ToyotaPartsAndService.com AASP-MN News
May 2020 | 15
COVER STORY
Continued from page 12
Additionally, Watson has implemented new measures within the shop to stay one step ahead of pandemic-related risks. “One thing we did was put a sanitizer dispenser at the front entrance so that when people come in – whether they be a customer, employee or parts vendor – they can sanitize their hands right out of the gate. Then, we have some sanitizers
16 | May 2020
at the front counter. We recently ordered some plexiglass barriers that will go between the customer and the front service counter.” Watson is also working hard to keep his staff engaged and positive during the unexpected downtime. “In an effort to keep everybody busy and keep their minds off of things, I created a Google Docs sheet and installed it on all of their work stations. I put a list of items that need to get done around the shop, then I put an area where they can initial who completed it. I created an initial
AASP-MN News
sheet, and then employees added to it as they saw things. We’ve been accomplishing a lot that normally wouldn’t get accomplished.” Over at Arrowhead Auto Body in Duluth, owner Travis Doyle is happy to report that only two members of his 33-person staff are not working at the moment (for personal reasons not related to COVID-19). Thankfully, he had work scheduled out five to six weeks before the pandemic hit. “We’re fortunate; there’s no doubt.” Like many shop owners, Doyle is encouraging customers who have been traveling or are exhibiting any symptoms to not come in the office, while he is giving others the option of emailing photos for estimates to reduce the possibility of physical contact. For Dan Sjolseth, working in the age of coronavirus also means helping those in his community. When the pandemic first began, he donated four cases of charcoal canister masks (which he received through a prior 3M promotion) and a box of N95 masks to the Eagan Fire Department. Although he experienced a considerable drop in work at both of his facilities (Superior Service Center in Apple Valley and Superior Collision Center in Eagan) after his backlog was completed after a couple of weeks, he was successful in securing payroll protection through the Coronavirus Aid, Relief and Economic Security (CARES) Act for his Eagan facility and planned to bring back his previously laid-off employees within a matter of days at press time. “A lot of people are excited to be coming back to work.” At the time of this writing, Sjolseth was waiting to confirm payroll protection for his Apple Valley shop. Once his workforce is back in place, he intends to have them focus on in-house training, deep cleaning/organizing the facilities and eliminating any unnecessary equipment and supplies. As these unprecedented times carry on, industry entities on the national front are doing all they can to offer much-needed information and assistance to affected businesses in Minnesota and beyond. I-CAR has made its Repairability Technical Support (RTS) Portal (rts.i-car.com) free Continued on page 18
LEGISLATIVE UPDATE
Continued from page 6
We also expect that the legislature will enact a sizeable bonding bill in order to approve funds for public projects that will put people to work. Beyond that, leadership has indicated that only provisions that have bipartisan support will likely receive much time and attention on the House or Senate floor. One positive aspect that has emerged, is the relative lack of partisan political fighting as the Republican-controlled Senate and the DFL-controlled House have joined with Governor Walz to prepare the state’s response to the virus. We expect the political wars will resume once we turn the corner on this outbreak, but it’s to everyone’s credit that they have managed to put aside politics for the good of the state.
AASP-MN News
May 2020 | 17
COVER STORY
Continued from page 12
to users through May 31. The RTS Portal provides comprehensive collision repair technical resources to technicians, appraisers, shop owners and managers, including reference tools for airbag and partial part replacements, OEM-specific repair information and access to real-time
Ask I-CAR technical support. The Society of Collision Repair Specialists (SCRS) is actively providing critical content to the inter-industry, including educational videos from the most recent SEMA Show and other events available on the official SCRS Facebook page (facebook.com/SCRS Collision). SCRS has also created a special online directory of industry-
related COVID-19 resources at scrs.com/covid19-resources. Although the final word on this challenging time in history has yet to be written, the Minnesota automotive community is working hard to overcome the difficulties ahead. If there’s one profession with the will to keep going while keeping customers safe and secure, it’s this one.
We carry a large inventory of Medium Duty truck parts.
• • • •
800-247-0585 651-639-2120 PARTS DIRECT:
Your Minnesota GM Wholesale Collision Parts Headquarters
Huge Inventory Competitive Discount Pricing Free Shipping on All Collision Parts Free Metro Delivery
24 Hour Fax: 651-639-2192
PARTS HOURS: Monday-Thursday: Friday: Saturday:
7:00am-8:00pm 7:00am-6:00pm 8:00am-4:30pm
www.rosedalechev.com email: cody@rosedalechev.com
2845 Hwy 35W North Located at I-35W & County Road C Roseville, MN
18 | May 2020
AASP-MN News
TRUTH IS THE MOST IMPORTANT REPLACEMENT PART. Your customers’ confidence is priceless. Original BMW Parts are identical to Series production parts and just as reliable. Choose the parts you can trust. Choose Original BMW Parts. · · · · ·
Professional, experienced, friendly wholesale specialists 2-year nationwide warranty on all parts Same-day shipping on most parts Free delivery within Minneapolis metro area Nationwide parts locator
Motorwerks BMW 1300 West American Blvd., Bloomington, MN 55420 Wholesale Parts Hotline: 1-888-204-2700 24-Hour Parts Fax: 612-884-6065 Wholesale Email: epeterson@penskeautomotive.com Hours: Mon - Fri 7:30 a.m. - 6:00 p.m. Sat 8:00 a.m. - 4:00 p.m. ©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.
AASP-MN News
May 2020 | 19