AASP-MN News January 2023

THANK YOU!

By Thomas Greco, AASP-MN News Publisher

As the old year fades and the new year arrives, I just wanted to take the time to thank all who have supported AASP-MN News, readers and advertisers alike. For over two decades, Thomas Greco Publishing (TGP) and the Alliance of Automotive Service Providers of Minnesota (AASP-MN / “The Alliance”) have worked together to bring you the latest news, events and commentary covering the automotive repair industry throughout the Great Lakes state.

A little over a year ago, we welcomed new AASP-MN Executive Director Linden Wicklund, and it has been our pleasure to share in her vision of where AASP-MN News will be going this year and in the future. I also want to thank former Executive Director Judell Anderson for all of her years of service and support to not only AASPMN News, but to TGP in particular. Last but certainly not least, Office Manager Jodi Pillsbury has been instrumental in helping us fine-tune each issue prior to production as our magazine liaison.

Thank you to AASP-MN President Jesse Jacobson and all of the Board members who volunteer their time to the Alliance, making sure members are up to date and

educated on all things affecting the industry. Whether it’s a legislative issue, a benefits issue or just an answer to an everyday question, the Board is there for all to access.

Publishing AASP-MN News quite literally would not be possible without our advertisers. I want to personally thank all of them, both longtime and new alike. Their dedication to give back to their industry through the pages of our publication is a big reason that AASP-MN News has succeeded where many others have failed. There’s an old saying: “We support those who support us.” That couldn’t be more true in this instance. Everyone who gets our publication should make sure when they need parts, equipment, tools or service, that the first place they look is in AASP-MN News.

Finally, without you, our readers, AASP-MN News would be nothing. Thank you for your engagement in our magazine whether through your direct feedback, or virtual and physical sharing of content with your colleagues and staff. We couldn’t do what we do without you and look forward to continuing to serve you.

Wishing you all a safe and healthy new year!

Legislative Priorities Take Shape Ahead of Session

With the election now far in the rearview mirror and the DFL poised to have control of both chambers of the legislature in addition to the Governor’s office in St. Paul, party and committee leaders have been named and top priorities have been identified.

As a refresher, the DFL maintained control of the House of Representatives by the same margin they held for the last two years – 70 to 64. The Senate, which the Republicans had controlled, will now also be run by the DFL by a razor thin one-seat majority – 34 to 33. With Governor Walz winning reelection, the DFL has a “trifecta” of state legislative control, a feat neither party has achieved since 2013. Additionally, the economic forecast released in mid-December continues to be strong. Because leaders walked away from bonding, spending and tax bills last year, the surplus leftover from 2022 has grown to a record-breaking $17.6 billion.

DFL leadership in the House and Senate and Gov. Tim Walz have all said passing a bonding bill will be a top priority. They are expected to propose the largest bonding bill in state history because inflation and delays in getting projects off the ground have increased the prices of pending projects. There will also likely be focus on a tax bill. DFL leaders have also discussed establishing a new Paid Family Leave program and spending more on education, health and human services and housing.

AASP-MN’s proposed legislation (and legislation that impacts AASP-MN’s members) is most often handled

by

in the Commerce Committees in the House and Senate. Committee chairs hold substantial power in determining which proposed legislation moves forward to be signed into law. During the 2023 session, Rep. Zach Stephenson (DFL – Coon Rapids) will continue to chair the Commerce Committee in the House of Representatives. In the Senate, there will be a significant shift in dynamics as the DFL takes control and Sen. Matt Klein (DFL- Mendota Heights) chairs the Senate Commerce Committee. With more than one third of the entire legislature consisting of new members, we look forward to upcoming committee assignments so we can get to know a lot of new lawmakers.

AASP-MN is working to solidify its legislative priorities. Some priorities that we’ll likely continue to advance include a requirement that insurance companies approve or deny claims within three days or be liable to pay for storage costs. Additional enforcement mechanisms to firm up statutes on steering, reasonable repair and short-pay will also be legislative priorities.

AASP-MN will also reserve the capacity to respond to urgent legislative issues as they arise, both supporting policies and funding that benefit members and working to identify and address any adverse legislation. One area receiving attention from many stakeholders is workforce development funding and programs, something impacting AASP-MN members. Training credits and funding for

Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists

We Need You!

AASP-MN is looking for automotive industry professionals who are interested in advancing the industry by serving in leadership positions on the Alliance’s Board of Directors and advisory committees. If you have a personal interest or would like to nominate someone to fill one of these positions, nominations must be received by February 17. To be considered, an individual must be nominated by five or more regular members. The Nominating Committee may also nominate a person whose name was not submitted by the regular members.

If, by Feb 17, only one person has been nominated to fill the open seat(s) on the Board of Directors,

the person so nominated shall be declared to have been elected to the Board without further action. If more than one person has been nominated to fill these positions, the Nominating Committee will prepare an electronic ballot setting forth the names of the persons who have been nominated and send to the regular members by March 10.

There are also several positions open on the Collision, Mechanical and Associate Advisory Committees, as well as the Government/ Regulatory Affairs Committee. If you are interested in serving on any of the committees above, please contact the Nominating Committee Chair, Tom Archambault (BLVD Autoworks) at (612) 789-5148 or

tom@blvdautoworks.com or the Alliance office at (612) 623-1110 or aasp@aaspmn.org by February 17.

Note: Only an individual representative of a member which performs collision work may be nominated to fill a Collision Division Seat, and only an individual representative of a member which performs auto service work may be nominated to fill a Mechanical Division Seat.

AASP-MN Annual Meeting & Leadership Conference Announced

The Alliance is pleased to announce its Annual Meeting and Leadership Conference will be held Friday, April 14, at the Minneapolis Marriott Northwest, Brooklyn Park.

The conference will be a full day of insights, practical strategies and critical information to help attendees stay up to date in today’s fastpaced and ever-changing industry. Attendees will leave with actionable take-aways and new connections to help them succeed!

In addition to an impressive agenda of educational programming, there will be ample opportunity for

Happy New Year from the AASP-MN Board of Directors & Staff!

attendees to network and socialize with their peers and industry vendors as they showcase new products and services. Watch for additional information as it becomes available!

Sponsorship Support Needed for AASP-MN’s Education & Events in 2023

Sponsorships are now available for AASP-MN education and events in 2023. Sponsorships help the Alliance deliver quality programs and keep registration fees affordable.

Sponsors are rewarded by increased visibility and recognition within the Alliance membership and industry at-large. It’s a great way to stand out, expand marketing dollars and connect with the best shops in the industry.

To date, the following companies have made sponsorship commitments in 2023:

Platinum Sponsors

• LKQ – Minnesota

• Lube-Tech

Gold Sponsors

• Auto Value Parts Stores / Benco Equipment

• CBIZ

• FinishMaster

• ShopMonkey

• United Fire Group Silver Sponsors

• Axalta Coating Systems

Bronze Sponsors

• aaa Auto Parts

• Radco/Accessory Pro Warehouse

If you are interested in sponsoring any events in 2023, sponsorship information can be found on the Alliance’s website, aaspmn.org or by calling the office at (612)-623-1110.

2023 Membership Dues Are Due!

Annual membership renewals were mailed mid-December. If you have not paid your 2023 membership dues, PLEASE do so today. Your timely payment will save the Alliance additional costs and time incurred with re-billing and other collection efforts. We would much rather be dedicating those resources to programs and initiatives to improve the automotive service industry – and your business. Thank you!

Minnesota Careers in Auto Repair & Service (MNCARS)

MNCARS is a nonprofit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state’s college-level automotive service and collision repair programs, and, ultimately, into industry workplaces.

Take advantage of the resources in the MotorMouth toolbox at carcareers.org/motor-mouth.

Get out and get active in your local community promoting industry careers!

www.langmarketing.com

Vehicle Average Age Metric is Out of Touch

Vehicle average age is a mainstay of estimating the aftermarket potential of a vehicle population. Despite its wide use, average age is out of touch with key aftermarket dynamics and can be misleading. For example, when new vehicle sales surge, average age can fall dramatically despite an increase in the number of older cars and light trucks, which are much more important than new vehicles for aftermarket volume.

Lang Marketing believes that aftermarket metrics should focus on vehicles of greatest significance to aftermarket product volume: cars and light trucks four years and older, which Lang Marketing calls aftermarket vehicles. This requires a new means of defining and calculating vehicle average age.

Aftermarket Vehicle Focus

The concept of aftermarket vehicles was explored in a recent Lang iReport, including the impact these vehicles (four years and older) have on aftermarket volume.

Rather than all vehicles in operation, Lang Marketing believes that aftermarket analysis should focus on aftermarket vehicles.

These cars and light trucks generate approximately 96 percent of all light vehicle aftermarket product volume (not including tires and accessories).

Aftermarket Vehicle Average Age

A new metric Lang Marketing has termed aftermarket vehicle average age is a more accurate measure of a VIO’s aftermarket potential: the average age of cars and light trucks four years and older.

Statistical Quirks of Average Age

The average age of all vehicles is determined by two factors: new vehicle sales and vehicle scrappage.

Aftermarket vehicle average age is a new metric developed by Lang Marketing that focuses on vehicle scrappage and the number of vehicles at least four years old.

By excluding vehicles aged three years and younger, this new metric focuses on the aftermarket potential of a select segment of the vehicle population rather than all light vehicles on the road.

Enhanced Average Age Metrics

The average age of all light vehicles in operation stood at 12.7 years at the beginning of January 2022.

Lang Marketing’s aftermarket vehicle average age is considerably higher due to not including newer cars and light trucks.

Aftermarket vehicle average age in the U.S. was 14.9 years at the beginning of 2022.

Average Age Five-Year History

Using the conventional means of calculation, the average age of all vehicles on the road climbed from 12.1 years in 2017 to 12.7 years by 2022.

Lang Marketing’s aftermarket vehicle average age was not only higher during both years, but it grew at a much faster pace. Aftermarket vehicle average age climbed from 13.7 years in 2017 to 14.9 years at the beginning of 2022.

Metric Differences

The key difference in these two metrics is that the conventional measure of vehicle age includes over 47 million vehicles under four years old at the beginning of 2022.

These newer vehicles contribute very little to 2022 aftermarket product volume. This traditional metric also understates the significance of the rapidly growing number of older cars and light trucks (particularly those 12 years and older) on aftermarket volume.

New Vehicle Metrics from Lang Marketing

Lang Marketing will begin developing a series of new aftermarket vehicle metrics that more accurately measure the aftermarket impact of the rapidly changing vehicle population.

Predictability

A significant advantage of aftermarket vehicle average age is that it can be predicted up to three years in the future more accurately than the conventional average age, which depends on estimates of new vehicle annual sales and annual vehicle scrappage.

Electric Vehicles

Average age, calculated in the traditional manner, understates the aftermarket impact of older vehicles, particularly Internal Combustion Engine (ICE) cars and light trucks.

Electric vehicles (EV) on the road are concentrated among cars and light trucks under four years old. Using conventional methodology, these vehicles are given the same significance in average age calculations as older ICE vehicles.

ICE vehicles and EVs make dramatically different contributions to aftermarket product volume, something that aftermarket vehicle average age can take into consideration.

New Metrics Needed

Beginning with aftermarket vehicle average age, Lang Marketing is developing a new set of metrics based on vehicles at least four years old, which will more accurately address the key dynamics of the evolving aftermarket and provide better analysis of a vehicle population’s potential to generate aftermarket product volume.

Six Major Takeaways

• Vehicle average age is widely used to estimate the aftermarket impact of vehicles in operation. However, this metric can be misleading and should be replaced by one focusing on vehicles with the greatest aftermarket significance: cars and light trucks four years and older (aftermarket vehicles).

• Aftermarket vehicle average age is a new metric developed by Lang Marketing that focuses on the segment of car and light truck population generating

approximately 96 percent of aftermarket product volume (not including tires and accessories).

• By excluding vehicles three years and newer, this new metric focuses on aftermarket vehicles, rather than all cars and light trucks in operation.

• The conventional measure of average age (which includes all light vehicles on the road) was 12.7 years at the beginning of 2022. Lang Marketing’s new metric, aftermarket vehicle average age, which measures the average age of cars and light trucks four years and older, reached 14.9 years on January 1, 2022.

• The significant difference between these two metrics is caused primarily by the 47 million vehicles three years and newer included in the conventional Average Age measurement; these contribute very little to aftermarket volume (not including tires and accessories).

• Lang Marketing will begin publishing a new series of aftermarket vehicle average age metrics (covering cars and light trucks and domestic and foreign nameplate vehicles). This will be the first in a group of new aftermarket metrics being developed by Lang Marketing to more accurately measure the aftermarket impact of the rapidly changing vehicle population.

Shrinking Repair Outlet Population

Vehicle maintenance is becoming less convenient for Americans. There are fewer outlets repairing cars and light trucks, despite the increasing population and complexity of cars and light trucks on U.S. roads. The number of repair (DIFM) outlets fell by nearly 14,000 over the past five years (2016 to 2021), and future annual reductions are likely.

Nevertheless, not all types of repair outlets suffered losses. Repair specialists, foreign specialists and dealers have grown in number, while the four other major types of DIFM outlets have endured thinning ranks.

14,000 Fewer Light Vehicle Repair Outlets

At mid-year 2021, there were over 211,700 car and light truck repair outlets in the U.S., down approximately 14,000 from 2016.

At the same time, vehicles in operation (VIO) climbed by more than 18 million and grew more complex, increasing the diagnostic and repair challenges faced by repair outlets.

Outlet Groups Growing in Number

Although the light vehicle repair outlet population fell by approximately 14,000 from 2016 to 2021, not all outlet types have declined.

Among the seven major types of car and light truck repair outlets, three increased in number between 2016 and 2021: Repair specialists, foreign specialists and vehicle dealers. These outlets groups grew even during the onslaught of COVID-19.

Repair Specialists

Focusing on a limited menu of vehicle repair and maintenance, repair specialist locations totaled just over 29,600 at mid-year 2021, up several hundred from five years earlier. Repair specialists are the second largest DIFM outlet group.

21st ANNUAL RACE FOR AUTOMOTIVE EDUCATION

January 23-26, 2023

6:00 - 9:30pm

ProKart Indoor Racing 14350 Rosemount Dr., Burnsville, MN 55306

A fundraiser to support the AASP-MN Automotive Education Fund… Enhancing opportunities in automotive education through scholarships, program support and partnerships.

Start your engines! Organize your team today. (This event would make a great employee outing!) The competition will consist of up to 10 teams each night with five members each and a crew chief.

These ain’t your daddy’s go karts! ProKart’s fleet of RiMO EVO6 Race Karts are run on power-boosting, lowemission, renewable methanol for consistency and performance.

All proceeds will benefit the AASP-MN Automotive Education Fund When the final checkered flag waves and the adrenaline subsides, our goal is to raise over $15,000 over the four nights. Most of that money is earmarked to fund scholarships for students enrolled in an ASE-accredited automotive programs (collision or mechanical) in the state of Minnesota. Scholarship awards are $500 - $2,000 per student.

The race is on! Registrations will be accepted on a first-come, first-served basis. The Race for Automotive Education is sure to be a sell-out event, so don’t delay – register today! _____ Team Sponsor - $500 (Includes admission for 6, including team captain and 5 racers)

Team Name: Contact:

Sponsor Name: Contact: Address: City: ______________________________________ Zip: Phone:_____________________________________ Email: Return with check payment by 1/15/2023 to: AASP-MN Automotive Education Fund 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 Phone: 612-623-1110 / Email: aasp@aaspmn.org

Credit cards are accepted with 3% surcharge. This surcharge is not greater than our total cost of accepting credit cards. Surcharge does not apply to debit cards.

The AASP-MN Education Fund provides financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry.

AASP-MN: Starting with a Strong Foundation and Scaling Up

Building a home that will withstand the wind and rain requires establishing a strong foundation by erecting a firm structure that will support the construction that is developed atop that foundation. That steadfast structure offers support for the growing building, providing it with the solidity needed to safely expand.

Likewise, an association that begins with a strong foundation creates the potential for growth and advancement. AASP-MN stands tall as a perfect example of the type of inspirational structure that can be developed on such a formidable base.

So, what’s the formula this organization uses to generate such success and strength?

“It’s our people,” lauded AASP-MN Executive Director Linden Wicklund. “We enjoy really strong participation from our member shops on both the automotive and collision side all across the state, and receiving their active feedback on what’s shifting and changing within the industry allows us to create programs and goals that are extremely relevant; we’re running on facts, not assumptions.”

In addition to soliciting feedback on a local level, Wicklund has joined members of the association’s Board of Directors in meeting with industry leaders regionally and nationally to further those peer-to-peer conversations and ensure that AASP-MN is “illuminating the day-to-day factors that really inhibit productivity and profitability as well as the larger scale elements that impact our members,” she shared. “We want to identify how we can support these businesses in making practical changes now while also keeping an eye focused on where we need to go in the future as we contend with the ‘new normal’ – supply chain issues, recovering

As AASP-MN prepares for the future with the introduction of the new year, many of the goals being chased will focus on maintaining and growing the association’s strength and expanding on the groundwork already laid.

“We piloted several ideas in 2022, and after spending some time really figuring them out, we’re now planning to formalize those programs and scale them up,” Wicklund said. “We hope to build upon what we’ve started and make these initiatives even larger and stronger as we continue them in 2023.”

Networking and education are two of the largest benefits that any successful trade association provides its members, and last year, AASP-MN began hosting monthly meetings in St. Cloud that drew as many as 80 industry professionals who came together for training and “sharing their thoughts. Some content was presented, but a large part of what made those events so beneficial was the communication and empowerment between shops. Those discussions really reinforced that we’re all in this together; no shop should feel like they’re going it alone.”

Two separate monthly Zoom calls – one for mechanical shops and another for collision centers –offered yet another opportunity for members to “swap ideas and evaluate what success looks like for different organizations,” according to Wicklund. “Sometimes, we’d get five shops on a call that would have never talked to each other otherwise, and it gave them a chance to explore their similarities and differences. It was surprising how often radically different shops would find many

from COVID-19, emerging new technologies and other disruptions, such as this year’s hailstorms.”

things in common, though their areas of expertise varied greatly.

“Even when certain practices were not directly transferable, those conversations often elicited new ideas and perspectives,” she continued. “We were happy to see more involvement from shops that are in less centralized markets and have historically been less engaged. Providing them with a low-effort means of obtaining high level education benefits those shops directly, but it also benefits the industry as a whole by elevating the standards by which vehicles are repaired. For 2023, we’re having fun exploring how we can make things immediately applicable and relevant in a more casual way that speaks to a larger number of our members. We’ll continue providing formal training of course, and our leadership team is really excited about our annual conference, but we’re focused on meeting members where they’re at so we can engage and learn from everyone.”

Wicklund views that level of camaraderie and training as some of the most valuable benefits the association provides its members, but AASP-MN also offers access to discounts on a variety of business needs, such as insurance, uniforms, credit card processing and more (check out the full list at aaspmn.org/savings). Of course, some shops already have standing relationships with these vendors, so “even when those vendors aren’t the right fit for some of our members, they may still be a useful resource to help shops learn more, so we’re bringing them in as educators to make sure we’re having dialogues on all those areas that impact our members’ businesses.”

Yet, the benefit that stands out as the most important aspect of belonging to AASP-MN is the same for most trade associations: “We provide strength in numbers, whether that’s from a buying perspective or when it comes to legislation,” Wicklund explained. “Members’ businesses need to shift and grow, and by having an awareness of one another, there’s a certain strength in that. When you’re so focused on the day to day operations of your own business, it’s easy to feel stuck and alone, but the size of our network allows members to tap into each other as a resource whenever they need to.

“Because we have so many member shops, we know who your competitors are and can connect you with a shop like yours, a shop that you aspire to be like or a shop struggling to catch up with you,” she added. “We offer that ability to connect with one another because our network is so vast, and we promote all our member companies on our public-facing website for consumers to see. AASP-MN stands out from a lot of other associations because, with nearly 700 members, we have a high percentage of market participation…We truly represent the state of Minnesota!”

With such a wide reach, the association is currently developing its strategic plan on the legislative front. “How do we widen our lens?” Wicklund asked. “What priorities and topics are other organizations focused on that matter to our members too, where we can participate to support them and to project our voice? In addition to building

by Chasidy Rae Sisk

partnerships, this strategy will help us create awareness of our organization by being in front of legislators more regularly. Then, when we approach them with a highly focused, specific request, they recognize us and know we’re participating in other spaces because we’re a regular part of the conversation in a way that’s relevant to all our members – mechanical, collision, suppliers and other service providers.”

AASP-MN saw a lot of progress in 2022, but it all started with one HUGE change at the beginning of the year: a change in leadership when Wicklund replaced long-time Executive Director Judell Anderson. “Linden hit the ground running and has done a great job,” AASP National President Dan Sjolseth (Superior Service Center; Eagan) pointed out. But Wicklund credits her predecessor for providing a solid structure that has allowed her to expand and strengthen what already existed.

“Judell grew AASP-MN to a place of health, stability and maturity with a strong foundation that we can now stand on top of to look in new directions. The strength of that groundwork allows us to be agile and forwardlooking, instead of needing to be reactive, because of everything that has been done to grow this organization. Without that strong foundation, we wouldn’t be able to see the possibilities or take risks to keep that momentum going, and that’s exactly what’s going to make us even more successful in the future.”

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womensindustrynetwork.com

ESTIMATING TIPS

Visit degweb.org to submit a Database Inquiry and contribute to database accuracy!

Audatex: Additional Operations Prompt – Additional NOT INCLUDED labor operations can be quickly added from the “Additional Labor Operations” prompt in Audatex. An example would be when replacing a lower control arm that would require engine R&I as per the OEM repair instructions.

Always reference OEM repair instructions and estimating system footnotes/added labor prompts to see what additional entries may be needed.

Mitchel CEG/P Pages from the MCE Application. The link will open in a new browser window. For non-Mitchell users, the same information can be accessed through the DEG Estimate Toolbox.

CCC/MOTOR:

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continued from pg. 5

employers who provide on-the-job training is one of several workforce development initiatives AASP-MN will monitor and support.

The legislative strength of AASP-MN lies within its statewide membership base. With so many new legislators and new committee chairs, there is a unique opportunity to educate lawmakers about the issues

members face and the corresponding legislative solutions. Shop visits and in-person meetings with legislators at the Capitol can move the dial in the right direction so stay tuned as we put together lists that match shop owners to legislators on the relevant committees and in leadership positions.

Mitchell: Accessing Mitchell P Pages from MCE – Mitchell MCE Users can quickly open and view component specific

Replacement Part Molding/Stamping Defects

Replacement parts may arrive with mold or stamping defects. DEG Inquiry 21426 states, “For any parts supplier parts issues, an on-the-spot evaluation would be required.”

Note: The estimating databases are all intended to be used as a GUIDE ONLY.View these tips and others at DEGWEB.ORG.

The Database Enhancement Gateway (DEG) helps improve the information in collision repair estimates through repairer feedback about vehicle-specific errors, omissions and inaccuracies in the database and labor times. If you are performing automotive repairs of any kind - collision or mechanical - you need to utilize the DEG! Check out some recent Database Inquiries - and their resolutionsbelow!

continued from pg. 9

Foreign Specialists

Foreign specialists concentrate on the repair of foreign nameplate cars and light trucks. They achieved the largest outlet gain over the past five years and the greatest percentage growth in locations.

There were just over 19,600 foreign specialists nationwide at mid-year 2012, up approximately 700 from five years earlier.

Vehicle Dealers

Vehicle dealers recorded a small (less than 0.2 percent) increase in outlets from 2016 to 2021. This reversed a trend of declining dealer locations in the years after the Great Recession of 2008.

Asian name plates have been the most successful in expanding their dealer counts.

Outlet Groups Declining in Number

Service stations and garages, tire dealers, discount stores/mass merchandisers with bays and retail auto parts stores with bays all fell in outlet count over the past five years.

Service Stations & Garages

Service stations and garages were battered by a significant population loss from 2016 to 2021, down by approximately 13,000 locations.

This represented most of the repair outlets lost

over these five years. Nevertheless, service stations and garages remain the most prevalent type of DIM outlet.

Tire Stores

There were approximately 800 fewer tire stores in the U.S. at mid-year 2021 than five years earlier.

Small tire stores suffered the brunt of this decline as growing competition from large, multi-outlet operations pushed many of them out of the market.

Discount Stores/Mass Merchandisers & Auto Parts Stores with Bays

The closing of hundreds of Sears Auto Centers nationwide contributed to the decline of discount stores/ mass merchandisers with bays, which has been ongoing since 2011.

The falling number of auto parts stores with bays between 2016 and 2021 continued a trend that has been underway for several decades.

COVID-19 Impact

Most of the DIFM outlet loss between 2016 and 2021 occurred over the past two years (2020 and 2021), reflecting the impact of COVID-19 and the resulting changes in consumers’ vehicle repair behavior.

Changes in the populations of the major types of DIFM outlets will continue, creating challenges and opportunities for a variety of aftermarket players.

Hazards in a Flash: WELDING

By Janet L. Keyes, CIH

We predict that more than half of them will say yes. And we can predict their answers when you ask them what caught fire. Rags. Parts of cars, such as foam insulation and carpeting. Their clothing. Themselves.

Another question to ask your technicians: “Have you ever had welder’s flash?” Don’t be surprised if nearly all of them say yes. Ask them how it happened. Sometimes, it’s because someone else was welding near them. Sometimes, it’s from the radiation reflecting off a nearby wall. Sometimes, the battery on their autodarkening welding helmet gave out. And sometimes, inexcusably, they decided to weld without eye protection.

What is welder’s flash? It’s photokeratitis – a burn on the lens of the eye caused by the intense ultraviolet radiation from welding (too much sun, particularly when reflected off snow or water, can cause it, too. In that case, it’s called snowblindness). It usually isn’t felt immediately. Instead, symptoms often show up at night, hours after the exposure occurred. Welders report it feeling like ground glass or burning sand in their eyes.

Fires cost you money. Employees who need to take time off work because their eyes hurt aren’t productive. Don’t underestimate the hazards of welding.

Welding hazards aren’t limited to fires and welder’s flash. Electrical shock can occur, especially if cables and connectors are damaged. The ultraviolet radiation can cause skin burns, just like a sunburn. The heat can cause thermal burns. Breathing in the fumes can damage lungs and increase the risk of lung cancer. If the metal is galvanized (zinc-coated), getting a big noseful of the fume can lead to metal fume fever. Several hours after breathing in the zinc fumes, the welder will start feeling like he’s come down with the flu – achy, feverish, chilled. That usually requires a day or two off work to recover.

It’s all very well and good to say how hazardous welding can be. What can you do about that? Stop welding? That isn’t realistic. Instead, think about ways to reduce the risk.

Don’t let welding burn down your shop. The Minnesota Fire Code requires that welding either be done in areas authorized for that purpose or that a hot work permit be filled out each time anyone welds (and

the permit just means you take the steps to make an area safe for welding). What makes an area safe for welding? Flying sparks or slags won’t hit anything that burns easily. Floors are kept clean. Walls and partitions won’t burn. There’s no welding or torch use on containers that hold flammable liquids or gases unless those have been thoroughly cleaned or purged. You have a fire extinguisher at hand, with people trained on how to use it.

The body shop or mechanics’ shop can be a designated area for welding. But you need to keep things that easily ignite out of the area. Keep aerosol cans and body filler on tool chests, not on the floor. Limit how much of those are out in the shop. Make sure rags are picked up and put into closed metal containers. Check that the extinguisher is close to hand.

If you’re welding on a car, try to fire-proof it. Can you remove any interior components, such as foam-padded seats? If you can’t remove them, use welding blankets or welding and spark deflection paper to cover it up. That adds to the cost and time, but you’ll make it up by not having to replace the vehicle.

Of course, don’t allow any welding in painting and priming areas.

Make sure welders dress appropriately for the job. As the employer, you are responsible for providing the required personal protective equipment. Even for quick welding jobs, that means welding helmets and leather gloves. Leather jackets keep sparks from burning clothes and skin. Is a respirator needed?

Those in the area need to be protected from the flash. The best option is to set up welding screens. The screens block the ultraviolet radiation and sparks. If that isn’t feasible, at least require everyone in the shop to wear polycarbonate safety glasses; teach them to look away from welding; and train welders to alert others in the area when they’re about to weld. If they’re helping someone who’s welding, they need the same level of protection, including a welding helmet, as the welder.

Don’t allow technicians to burn off coatings. Grinding them off is much safer. Only bare metal should be welded. Solvent residues and coatings can create toxic fumes.

How can we ensure welders don’t breathe too much of the fume? Welding helmets block some. Having good general ventilation in the shop provides some protection. But if anyone does a lot of welding, wearing a respirator with N95 or P100 filters is a good idea. And you must include that person in your respiratory protection

Ask your body techs and mechanics this question: “Have you ever started a fire when welding?”

program – getting medical approval for respirator use, training them on correct care and use each year, and fit testing.

Welding is hazardous. We can’t eliminate the hazards, but we can mitigate them. If your technicians need to weld, remind them of what they need to do to weld safely. Better to take five minutes now, instead of rebuilding the burned-down shop later.

For more information, contact Carol Keyes at (651) 481-977 or carkey@chess-safety.com.

What's Wrong With This Picture?

NATIONAL

continued from pg. 17

Six Major Takeaways

• The number and complexity of cars and light trucks in operation have continued to increase. Nevertheless, the population of repair outlets handling cars and light trucks fell by approximately 14,000 over the past five years (2016 to 2021).

• Despite the loss of car and light truck repair outlets between 2016 and 2021, three of the seven major groups of DIFM outlets expanded their populations: Repair specialists, foreign specialists and vehicle dealers.

• The number of repair specialists climbed by approximately 350 between 2016 and 2021, and approximately 700 foreign specialists locations were added. Vehicle dealers posted a modest increase in number, reversing a trend of vanishing locations that began during the Great Recession of 2008.

• Service stations and garages suffered the most significant outlet loss from 2016 to 2021. The populations of tire stores, discount stores/mass merchandisers with bays, and auto parts stores with bays also were battered during these years.

• The growing number and complexity of cars and light trucks in operation provide challenges and opportunities for the shrinking population of light vehicle repair outlets across the country. They must become more technically capable and productive to keep pace with the growing volume and complexity of vehicle repairs.

• See the all-new 2023 Lang Aftermarket Annual for the only 10-year analysis of the population changes sweeping across the seven major types of auto repair outlets in the U.S.

Answer: Damaged strain relief on a welder’s cord.

Incidental Tire Storage and Fire Safety

A wide range of organizations – including car dealerships, mechanics, auto body shops, gas stations and numerous retailers – keep tires stored at their commercial properties. However, such storage can result in serious fire hazards. Specifically, the rubber material typically found in tires can be extremely dangerous and damaging in the event of a fire. Although this material is slower to ignite, it can burn rapidly and emit high heat once a fire starts – making the flames difficult to extinguish.

What’s more, tire fires often release large amounts of oil and toxic smoke throughout the surrounding area, thus polluting nearby waterways and air. Tire fires not only have the potential to cause severe property damage but can also threaten the environmental safety of entire communities. In some cases, tire fires can even force neighborhoods to issue temporary evacuations until conditions improve.

Don’t let tire fires wreak havoc on your organization. Consider these tire storage precautions to help minimize fire risks at your property. Keep in mind that this guidance applies to incidental tire storage, meaning that such storage is not the main purpose of the commercial property, and the storage area does not exceed 2,000 square feet. Nonincidental tire storage – which is usually utilized within vehicle part distribution centers and recycling facilities – may require additional precautions.

Incidental Tire Storage Precautions

Here are some general tire storage tips to promote fire safety at your property:

• Select an appropriate location. First, make sure you choose a safe and secure location for storing your tires. This location should provide proper ventilation and protect tires from damage due to excess heat or moisture. Further, this location should contain minimal flammable or combustible materials that could promote the start of a fire.

• Adopt an effective layout. Once you’ve selected an appropriate location, it’s critical to develop a safe tire storage layout, usually through the use of sturdy tire racks. Although tires can be stacked directly on the ground, doing so could damage the tires and increase the risk of tire stack instability (and subsequent collapse). Tire racks should not be placed too close together or allow for tires to be stacked at excessive heights – otherwise, a fire could spread more easily between tires and cause greater damages. Maximum dimensions for tire racks, suggested tire-stacking

heights and the recommended amount of clearance between each tire rack varies based on the unique characteristics of your storage location.

• Stay organized. To supplement an effective tire storage layout, it’s also vital to keep your storage location clear of any clutter or obstructions. A disorganized storage area will only increase fire hazards, as well as make it difficult for the fire department to access the area and extinguish the flames if a fire occurs. With this in mind, be sure to maintain an effective housekeeping regimen.

• Restrict high-risk activities. To eliminate unnecessary tire fire exposures, make sure that any hot work tasks (e.g., welding, cutting and burning) or activities that entail the presence of an open flame (e.g., smoking) are prohibited near the tire storage area. These rules should be enforced with adequate signage and workplace supervision.

• Ensure adequate disposal. After tires have been scrapped, they shouldn’t remain in your storage area for long. Keeping these tires on your property for an extended period can lead to additional fire risks and pest concerns. It’s best to have these tires removed from your property in a timely manner and properly disposed of by a reputable, qualified company.

Apart from these tips, be sure to review both state and local fire protection regulations and building codes for specific tire storage requirements relevant to your community.

NFPA Considerations

In addition to the aforementioned precautions, it’s important to be aware of National Fire Protection Association (NFPA) standards related to tire storage. Under NFPA 13, a number of tire storage factors (e.g., how tires are stacked and storage area dimensions) must be considered when determining an appropriate sprinkler system design for a commercial property. NFPA 13 also requires an adequate amount of clearance between tires and sprinkler heads (36 inches), roof structures (39 inches) and nearby heaters (36 inches).

In addition, under NFPA 1, the volume of tires stored at a commercial property can require the building to be equipped with an automatic sprinkler system. Further, various tire rack characteristics (e.g., rack material, height and capacity) could require the property to implement an in-rack sprinkler system. Due to the severity of tire

fires, NFPA 1 also requires that any tire storage area designed to hold a significant volume of tires be separated from other areas of the attached commercial property by a four-hour fire wall. Such walls can temporarily block flames from spreading to other areas of a property during a fire – minimizing the resulting damages.

For more risk management guidance, contact Brad Schmid at CBIZ at (763) 549-2247 or bschmid@ cbiz.com.

This Risk Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2021 Zywave, Inc. All rights reserved.

AASP-MN & Automotive Seminars Team Up to Offer Members Online Training Discounts

AASP-MN and Automotive Seminars have partnered up to offer you discounted pricing on all upcoming liveonline training, as well on-demand training videos.

Automotive Seminars specializes in diagnostic training that provides automotive technicians with knowledge, testing techniques and data interpretation skills needed to diagnose today’s vehicles. The live-online training and on-demand training videos focus on automotive electronics and engine management systems and are written and created by some of the industry’s leading diagnostic technicians.

These online options take the best of in-person training and bring it to technicians wherever they are, whether at home or in the shop. Highlights include:

• Live-online events have Q & A periods after each discussion topic. These dynamic sessions are there to make sure everything is clear, and that the technician understands the information provided.

PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE

CBIZ

Contact: Brad Schmid 763-549-2247 / bschmid@cbiz.com

• Each shop’s technicians can be watching at the same time, from any location

• Unlimited video access after the live-online event concludes

• PDF manual included

• Certificate of Completion with number of hours

• Each live-online event costs $100 for the entire shop (multiple-shop locations require a license for each location)

• AASP-MN members receive 15 percent off all live-online presentations, as well as Automotive Seminars’ entire on-demand video library, by using promo code AASPMN-DISCOUNT during checkout.

For more information, visit aaspmn.org or contact the Alliance office at (612) 623-1110.

AASP-MN MEMBER BENEFIT PROGRAMS

WEBSITE AND INTERNET MARKETING SOLUTIONS

Autoshop Solutions

Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.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.

EMPLOYEE BENEFITS

Business Planning Professionals

Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com

Business Planning Professionals will provide AASP-MN members with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance.

EMPLOYEE VOLUNTARY BENEFITS

Colonial Life Contact: Deb Ferrao 612-600-4135 / deb.ferrao@coloniallifesales.com or Tracy Bailey 612-801-0139 / tracy.coloniallife@gmail.com

Dedicated representatives can help members transform their benefit package with competitive rates, value added services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility to create a plan to fit everyone’s needs.

UNIFORM & LINEN SUPPLIES

Aramark

Contact: Rick Krenz 612-616-5290 / krenz-richard@aramark.com

Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride/Aramark each year.

CREDIT CARD PROCESSING

Association BankCard Services

Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz

Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

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.

Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your website, pay-per-click, search engine optimization, social media, and much more! With five levels of RPM to match your budget, goals, and competition, it’s built to drive your shop forward!

REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS CARS COOPERATIVE

Contact: Stephenie Sheppard 405-547-4077 / membersupport@cars.coop

Members receive discounts on a variety of products and services they use every day! From discounts on paint and rental cars to office supplies and phone services. Over 50 programs available!

INFORMATION PROVIDERS

Mitchell 1

Contact: Mitchell 1 Representative 888-724-6742 ext. 6986

Mitchell 1 offers AASP members a $10 per month discount on any eligible Mitchell 1 subscription.

Mitchell International

Contact: Mitchell International Representative 800-238-9111

AASP members receive $350 off Mitchell's MD-500 allin-one solution for scanning, calibration, estimating, and blueprinting.

TECHNICAL INFORMATION HOTLINE

IDENTIFIX

800-745-9649

Members enjoy a 20% annual savings on Direct-Hit and Direct-Help subscriptions, the industry's most reliable source for experience-based repair information.

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.

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.

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).

SAFETY COMPLIANCE

Complete, Health, Environmental & Safety Services

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.

LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING

AUTOMOTIVE SEMINARS

Contact: Tim Houghtaling 920-866-9813 / tim@automotiveseminars.com Discounted pricing to AASP-MN members on all liveonline events, as well as on-demand training videos. Automotive Seminars specializes in diagnostic training that provides automotive technicians with knowledge, testing techniques and data interpretation skills needed to diagnose today’s vehicles. The live-online events and ondemand training videos focus on automotive electronics and engine management systems and are written and created by some of the industry’s leading diagnostic technicians.

BUSINESS COACHING

180BIZ

540-833-2014 / info@180biz.com

Members receive a 25% discount on Rick White's Pocket Business Genius subscription, offering independent auto shop owners fast access to actionable business advice from a leading industry expert.

SHOP SOFTWARE Condition Now 888-868-5440 / conditionnow.com/body-shop A platform that allows shops to supplement the accident or damage information reported on Carfax and Autocheck vehicle history reports. Every AASP member receives a discounted inspection rate, allowing them to generate additional revenue from their retail and dealer customers.