AASP-MN News March 2023

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UPCOMING EVENTS

Take a Break and Learn from the Best

By Jesse Jacobson, AASP-MN President

I know it has been hard to step away from our businesses lately. The repair backlog isn’t going away, employees are hard to find, insurance companies keep wanting you to do more while being underpaid and production issues always seem to pop up, leaving you feeling that you can’t leave. That is the exact signal that should tell you now is the best time to take a break and attend the AASP-MN Annual Meeting & Leadership Conference coming up in April.

No, I don’t mean run away from your employees and leave them hanging. I find stepping away from the shops and attending events like industry conferences, 20 group meetings and the AASP-MN conference always gives me new ideas to tackle current challenges and set new goals. The list of things that we’ve implemented from conferences and meetings is too long for this

article, so come find me during the conference and we can talk about them. The ideas and goals just aren’t shop related, they are self-improvement skills and how to be a better all-around person. These ideas and goals come from the members and the outstanding speakers that our staff and other members recommend. I find it so important that I have all six of our shop managers attend as well, because it is important for them to get out of our bubble and hear how other shops do things and listen to inspiring speakers. The conference is also about relationship building and networking. Someone might have a piece of software, welder, hand tool or paint booth that you’re interested in and now you can ask those questions to someone who uses it. Vendors also have a great opportunity to showcase their

continued on pg. 21

Clean Energy and Electric Vehicles Center Stage at Legislature

Clean energy was a priority for the Walz administration during the first term, and now with Democrats in control of both chambers, the renewed focus has more momentum. To that end, during the first five weeks of the legislative session, the House and Senate passed the “carbon-free electricity by 2040” bill, which was signed by the Governor. The new law requires the state’s electric utilities generate all their electricity from carbon-free sources by 2040, moving up the previous deadline by a decade.

This legislation becoming law coincides with a new report finding that Minnesota is on track to meet its goals for reducing greenhouse gas emissions that were set back in 2007. While this is overall positive news, there are many caveats – a glaring one of which is transportation

emissions which account for the largest source of greenhouse gas emissions in Minnesota. And while overall greenhouse gas emissions from transportation recently decreased, this reduction is likely attributable to the impact Covid-19 had on overall transportation demand and is not likely repeatable.

Given that electric utilities have made significant progress in decreasing emissions since 2007 and recent legislation provides even more regulations and assistance, many expect attention to turn to the transportation industry as lawmakers continue to look for ways to decrease carbon emissions. A shift in focus has already been happening as both the state and federal government are increasingly speaking out and making spending proposals to increase the use of

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

electric vehicles. Vice-President Harris spent time in St. Cloud this past month promoting EVs and supporting EV infrastructure. At the state level, Governor Walz’s proposed budget includes a variety of EV proposals as well, from funding for charging stations to programs to support job training in clean economy occupations. Stay tuned as more legislation moves through the process!

Another issue that has been top of mind for many shops with employees is the paid family and medical leave legislation making its way through the Legislature. There are a variety of opinions about the proposal. Regardless of support or opposition, it’s important for members to have a basic understanding of the components included in the draft bill moving forward. The state will use onetime surplus funds to get the program up and running, meaning benefits would be available from the beginning (2025). Then employers and employees would pay a new payroll tax to keep the programming running into the future. Money paid into the state fund by employers and employees would vary depending on an employee’s salary. Employees could take anywhere from seven days to 12 weeks off for a qualifying family or medical issue, with a maximum of 24 weeks in a year.

Paid family and medical leave is a priority for the DFL, which controls both chambers of the Legislature and the Governor’s office, so it will most likely become law in some form. What is less certain is what the final version will look like. Watch for updates as the draft legislation is amended and works its way through each chamber and on to the Governor.

AASP-MN’s Uniform & Linen Supplies Program Pays 10 Percent Rebate

AASP-MN recently distributed over $79,500 to 183 members participating in the Alliance’s uniform program through Aramark. That’s an average rebate of $434.80! The rebate is equal to 10 percent of their qualifying purchases during 2022.

This is just one of many cost-savings programs the Alliance offers to its members. To find out more about the benefits/services available, check out page 22 of this issue of AASP-MN News, call the AASP-MN office at 612623-1110 or visit the AASP-MN website, aaspmn.org and start saving today!

21st Annual Race for Automotive Education Raises Over $14,000 for Student Scholarships

AASP-MN held its 21st Annual Race for Automotive Education, January 23-26, at ProKart Indoor Racing in Burnsville. The event raised over $14,000 to support the Alliance’s Automotive Education Fund and will fund scholarships for automotive students enrolled in ASEAccredited auto service and collision repair programs in Minnesota’s technical colleges.

During the four nights of racing, 40 teams (197 racers) of auto service and collision repair shops, technical school students and industry suppliers took to the track in go-karts reaching speeds of up to 40 miles per hour. Many spectator fans were also on hand to cheer on their team.

Trophies were awarded to the first place and runnerup teams each night. They were:

Monday, January 23

• First Place - Fairway Collision & Mechanical, Vadnais Heights

• Runner-Up – Collision Specialists Inc., Red Team (CSI Green came in third), Austin

Tuesday, January 24 (student night)

• First Place – DCTC Team #1, Rosemount

• Runner-Up – DCTC Team #2, Rosemount

Wednesday, January 25

• First Place - Wenzel Auto Electric, Mankato

• Runner-Up - LaMettry’s Collision, Minnetonka

Thursday, January 26

• First Place – Suburban Chevrolet, Eden Prairie

• Runner-Up – Heppner’s Team #3, St. Paul

In addition to the 40 race teams, this event was supported by:

• 1 Collision Network

• 3M

• Auto Value/Benco Equipment

• CBIZ

• Dentsmart PDR

• Finishaster

• Justice Brothers Car Care Products

• LKQ-Minnesota

• Lube-Tech & Partners

• Shop Monkey

• United Fire Group

(Pictured top-bottom): Day One First Place winner Fairway Collision & Mechanical (Vadnais Heights); Day Four First Place winner Suburban Chevrolet (Eden Prairie) & Runner-Up LaMettry’s Collision (Minnetonka)

NEW this year, we will be awarding prizes at the Annual Meeting & Leadership Conference on April 5 for the top team of the week and other notable race accomplishments!

The Automotive Education Fund was established in 2002 to provide financial resources to support

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.

MNCARS is Back on the Road and Visiting Schools! If you would like to use the MNCARS materials for a school event or visit near you, or would like a representative from MNCARS to come to your area, let us know! Here is a list of our recent stops:

• Feb. 2: Anoka Tech, presentation to three classrooms of mechanical students & tour of new third-year program space

• Feb. 10: St. Paul College event with presentation from Senator Klobuchar promoting The American Apprenticeship Act

• Feb. 17: Central Middle School, White Bear Lake Area Schools

IDS624, presentations to five classes of 6th to 8th graders

• Feb. 23: Johnson Senior High School, St Paul, Opportunities Fair

• Feb. 24: Central Senior High School, St Paul, Opportunities Fair

• Feb. 27: Elk River Schools, Career Fair

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!

automotive students, enhance automotive programs and raise awareness of career opportunities in the automotive service industry. Since its inception, nearly $310,000 has been invested in student scholarships, SkillsUSA and automotive education programs throughout the state.

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

Sponsorships Support Alliance Educational Programs & Other Activities in 2023

Recently, AASP-MN asked for program sponsorships from its Associate members and other industry vendors to help support AASP-MN’s educational programs and other activities in 2023. Sponsorships help the Alliance deliver quality programming at an affordable price to members.

To date, the following companies have made sponsorship commitments:

Platinum Sponsors

LKQ Minnesota

Lube-Tech

Gold Sponsors 3M

Auto Value / Benco CBIZ

FinishMaster

ShopMonkey

Silver Sponsors

Aramark

Axalta Coating Systems

Colonial Life Enterprise Rent-A-Car

Heartman Insurance

O’Reilly Auto Parts

PPG Automotive Refinishes

Sherwin-Williams

Suburban GM Parts

Sunbelt Business Advisors

United Fire Group

Bronze Sponsor

aaa Auto Parts C.H.E.S.S.

Dentsmart PDR

Radco

If you are interested in becoming a sponsor for any Alliance educational program or event, contact the AASP-MN office at (612) 623-1110.

2023 Membership Dues Are Due!

If you have not paid your 2023 membership dues, PLEASE do so today. Your timely payment will save AASP-MN the additional cost and

time incurred with re-billing and other collection efforts. We’d much rather be working on programs and initiatives to improve the automotive service industry – and your business. Thank you!

Fewer Sweet-Spot Vehicles No Problem

Three years of depressed new vehicle sales from 2020 through 2022 (and probably for the next few years) have some aftermarket analysts concerned. They fear that beginning in 2026 fewer vehicles in the repair-age sweet-spot (cars and light trucks six to 10 years old) will reduce aftermarket volume.

While this reasoning seems compelling, Lang Marketing believes that several key factors will fuel an increase, not a decrease, of aftermarket volume, despite the shrinking number of vehicles six to 10 years old on U.S. roads in the coming years.

Aftermarket Sales Drivers

Sales of some aftermarket parts, such as accessories, are concentrated in the first few years of vehicle operation, but replacement parts (parts necessary for vehicle operation) are dependent on vehicle use (and the resulting wear and tear) to create aftermarket demand.

Vehicle Repair-Age Sweet-Spot

The repair-age sweet-spot has vehicle age boundaries of six to 10 years old. Traditionally, these cars and light trucks record an above-average rate of aftermarket product use.

The six-to-10-year age range of the repair-age sweet-spot is a product of the wear and tear from the annual miles typically traveled by these vehicles and their accumulated mileage.

Sweet-Spot Age Boundaries

However, these factors are in flux. Cars and light trucks are being driven fewer miles per year, rolling up odometer miles at a slower pace than in the past. Accordingly, accumulated mileage by vehicle age is changing.

Due to these factors and the increased durability of original equipment parts in new vehicles, the age boundaries of the repair-age sweet-spot will move higher in the next few years.

Fewer Sweet-Spot Vehicles

The consequences of plunging new vehicle sales during 2020 through 2022 (down about 20 percent compared to 2016 through 2019) are working their way through the vehicle population and heading to the repairage sweet-spot.

In a few years, there will be a significant reduction of vehicles six to 10 years old.

During 2021, there were over 81 million vehicles six to 10 years old on U.S. roads. By 2028, the repair-age sweet-spot population will shrink by over 10 million, down more than 12 percent in this critical vehicle age range.

Not All Miles Are Equal in Vehicle Wear

As vehicles age, they generally require more repairs (parts and purchased service) per mile than

newer cars and light trucks. Accordingly, not all miles are equal in creating vehicle wear and tear, which leads to aftermarket product use.

If a consumer with a four-year-old vehicle does not replace it with a new model, he will drive his aging vehicle for several more years at about the same annual miles he would have driven a new model.

Mileage Shift to Older Vehicles

These additional miles on older vehicles, rather than newer ones, boost aftermarket parts and purchased service per vehicle mile.

This example will be repeated millions of times over the next several years, increasing the aftermarket parts and purchased service volume per vehicle mile traveled by the aging VIO.

Shifting Sweet-Spot

As a result of low new vehicle sales (2020 through 2022 and probably beyond) there will be an upward shift in the boundaries of the repair-age sweet-spot, reflecting changes in the age mix of vehicles and their annual miles and accumulated mileage.

Strong Aftermarket Outlook for Many Products

While some aftermarket products, such as accessories, could suffer reductions in annual volume from the decline of new vehicle sales, replacement parts (and the purchased service required for diagnosis and installation) will benefit from a VIO in which older cars and light trucks are driven more miles annually and accumulate higher mileage.

Six Major Takeaways

• Approximately 20 percent fewer new cars and light trucks were sold from 2020 through 2022 compared to the previous three years. Lang Marketing expects that this lower sales trend will continue for several more years.

• Some analysts fear that new vehicle sales and the impending drop in cars and light trucks in the repairage sweet-spot (vehicles six to 10 years old) will reduce aftermarket volume starting in 2026.

• Lower new vehicle sales will work their way through the vehicle population, and in a few years, the number of cars and light trucks in the so-called repair-age sweetspot (vehicles six to 10 years old) will fall by about 12 percent.

• During their first four years in operation, cars and light trucks average thousands of miles more per year than the typical vehicle in operation. Lower new vehicle sales mean that mileage will be shifted to older vehicle age groups.

• As vehicles age, they generally require more repairs (parts and purchased service) per mile than newer cars and light trucks. Accordingly, all miles are not equal in creating vehicle wear and tear that leads to

aftermarket product use.

• As new vehicle sales decline, mileage is shifted to older vehicles, and wear and tear on these older vehicles increases per mile. Replacement parts volume (and the purchased service required for diagnosis and installation) will benefit from older cars and light trucks being driven more miles annually and accumulating higher mileage. Accordingly, a drop beginning in 2026 in the number of vehicles in the repair-age-sweet spot will not reduce aftermarket volume (parts and purchased service).

VIO Count Does Not Determine Aftermarket Sales

The number of vehicles in operation (VIO) does not necessarily determine aftermarket sales. More often, the key drivers of aftermarket sales are the types of vehicles in operation and their use (mileage), not the VIO count.

The VIO in the U.S. has been relatively flat over the past three years (2020 through 2022), and Lang Marketing projects that this VIO plateau will continue through 2024. Nevertheless, there will be significant car and light truck aftermarket product growth during these years.

10 Million Vehicles Not Sold Through 2024

Beginning in 2020, the new vehicle market dialed down. The onslaught of COVID-19 and resulting interruptions in the flow of components for vehicle production reduced the supply and sales of new cars and light trucks in the U.S.

Higher vehicle prices and soaring interest rates have added to the new vehicle market’s woes.

Accordingly, about seven million fewer vehicles were sold in the U.S. over the past three years (2020 through 2022) compared to the annual average of the red-hot new vehicle market between 2015 and 2019.

Slow New Vehicle Recovery

The new vehicle market recorded 2.4 million fewer sales in 2020 than the previous year. By 2022, the new vehicle market had declined by another million cars and light trucks.

Downward pressure on new vehicle production and sales will continue for the next two years. Lang Marketing projects that sales in 2023 and 2024 will fall about 12 percent below the yearly new vehicle average recorded between 2015 and 2019 (17.2 million).

Flat VIO in the U.S.

After three years of struggling new vehicle sales, the number of vehicles in operation (VIO) was flat in 2022 compared to the two previous years. The VIO will likely continue at that plateau through 2024, according to Lang Marketing’s projections.

Aftermarket Impact of No VIO Growth

Contrary to expectations, the lack of VIO growth

between 2020 and 2024 will not be a death sentence for aftermarket sales. In fact, aftermarket product volume boomed during 2021 and 2022, recovering from the onslaught of COVID-19, despite the flat VIO.

Lang Marketing expects this trend to continue through 2024, with aftermarket growth at least as strong during 2023 and 20224 as in the five years of VIO expansion from 2015 through 2019.

Three Types of Vehicles and Their Use

The types of vehicles on the road and their use (mileage) are much more important to aftermarket product growth than increases in the size of the VIO.

Three types of vehicles (and their use) are key to generating aftermarket product volume: older vehicles, light trucks and foreign vehicles.

Older Vehicles

Older vehicles consume more aftermarket products per mile than newer ones.

The average age of vehicles in the U.S. climbed by about 1.5 years from 2012 to 2022, and the number of older vehicles, especially those at least 12 years of age, increased significantly.

Much of the aftermarket product growth during the past few years (when the VIO was flat) has resulted from an older mix of vehicles using more products per mile than in past years.

Light Trucks

Light trucks average significantly more aftermarket product volume per vehicle than passenger cars.

This is due to consumers purchasing more accessories for light trucks than passenger cars, the higher prices of many components for light trucks compared to cars, and other high-priced parts that are unique to light trucks.

Light Truck VIO Majority

Over the past 20 years, light trucks have significantly increased their share of new vehicle sales, and, accordingly, they now represent a VIO majority.

This light truck surge has helped to increase the volume of aftermarket products, independent of VIO growth.

Foreign Nameplate Vehicles

Foreign nameplates generally average higher annual repair and maintenance use for two reasons: foreign nameplates have above-average rates of Do-It-For-Me repair (which has higher product costs at user-price than Do-It-Yourself repair), and their replacement parts generally are more expensive than those for domestic nameplates (greater use of OE brands, etc.).

All Three Systems: Topping Off Fuel Tank for Wheel Alignment – Vehicle manufacturers’ service procedures may require the fuel tank to be topped off prior to performing wheel alignments. When utilizing labor time from CCC, Mitchell or Audatex Qapter, the labor and fuel cost to fill up the fuel tank is NOT INCLUDED. Always consult with the vehicle manufacturer and vehicle owner for correct fuel type used in their vehicle.

All Three Systems: Steering Gear Initialization/ Re-learning NOT INCLUDED – OEM repair procedures for replacement steering gear assemblies may require programming or re-learning as per the OEM repair procedures. Additional labor for this diagnostic step, using a scan tool, is NOT INCLUDED in all three estimating systems.

CCC/MOTOR: Estimate Work Time Premise Pages G9

Audatex DBRM 4-2 Labor Exclusions Pages 43/44

Mitchell CEG Labor General Information > Additions to Labor Times

All Three Systems: Seam Sealer for Bolt-on Door Hinges – OEMs commonly require seam sealer application to door hinge areas. The labor to remove and/or reapply seam sealer is NOT INCLUDED on bolton parts. Material costs to perform the operation are also NOT INCLUDED. Always reference labor footnotes for vehicle-specific labor notes. Cavity wax may also be required and is also considered NOT INCLUDED.

Honda Water Shield/Vapor Barrier Adhesive – Honda/ Acura repairs that require installation of a vapor barrier may need to apply “putty-like adhesive that reattaches the plastic cover (rain protector) under the door panel to the door.” Honda part number 08712-0003 is available from your Honda/Acura parts dealer. Reference Honda Bulletin 99-030, “Honda Recommended Materials,” for a list of approved products used in Honda/Acura repairs. Labor to apply adhesive may vary depending on the information provider. Material cost is NEVER included. Submit a DEG Inquiry on vehicle-specific chapters to confirm labor application and labor times for vapor barriers when in question.

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 databasae and labor times. If you are performing automotive repairs of any kind - collision or mechanicalyou need to utilize the DEG! Check out some recent Database Inquiries - and their resolutions - below!

AASP-MN Annual Meeting & Leadership Conference: “NEW PERSPECTIVES”

April 4 & 5, 2023

Marriott Minneapolis Northwest 7025 Northland Dr. North • Brooklyn Park, MN 55428

AGENDA AT A GLANCE

Tuesday, April 4

12:00pm–5:00pm Registration Open

1:00pm–4:00pm Off-Site ADAS Calibration Center Tour with Q&A, LaMettry’s Calibration Center, Bloomington, tour guided by Darrell Amberson & LaMettry’s Team Experts

1:00pm–4:00pm “Writing and Negotiating Estimates from a Minnesota Expert,” presented by Josh Shaw, Shannon’s Auto Body

1:00pm–4:00pm “Six Steps to Skyrocketing Your Bottom Line,” presented by Rick White, 180BIZ

6:00pm–8:00pm Off-Site TOPGOLF Event, Brooklyn Center

Wednesday, April 5

7:00am–5:00pm Registration Open

7:30am–8:00am Coffee with Vendors

Register 2 from the same company on Wednesday & get the third at 1/2 PRICE!

8:00am–9:00am Opening Keynote: “The Champion’s Code, Part 1,” presented by Ross Bernstein

9:00am–9:30am State of the Industry Report, presented by Linden Wicklund, AASP-MN Executive Director

9:45am–11:30am Round Table Discussions. Attendees participate in 3 topics for 30 minutes each.

Leadership/General Business:

1. Under Construction

2. Inclusive Shop Culture

3. Customer Retention & 5 Stars

4. Hiring Students & Tech School Partnerships

5. Small Changes with Big Returns

6. ADAS

7. Electric Vehicles

Mechanical-specific:

1. Hiring an Experienced Mechanic & Other Magic Tricks

Collision-specific:

1. DRPs & OEM Certifications – When to Add or Drop

2. Negotiation Tips & Tricks

11:30am–1:30pm Lunch, Annual Meeting, Special Presentation: “The Why Behind Safe & Proper Repairs,” presented by Marcia Seebachan, & Vendor Showcase

1:45pm–3:45pm Breakout Sessions. Attendees will participate in 2 topics for 50 minutes each.

Leadership/General Business:

1. Wearing the C

2. Preparing to Buy, Sell, or Expand Panel Discussion

Mechanical-specific:

1. Profit Shouldn’t Be an Accident

Collision-specific:

1. Labor Rate Hero on Your Side

2. Profitable Repair Plans

2. The EV Servicing Opportunity for Independent Shop Owners

3:50pm–5:30pm Closing Keynote: The Champion’s Code, Part 2, presented by Ross Bernstein, Vendor Showcase & Reception

5:30pm Grand Prize Drawing

AASP-MN has crafted the following classes, workshops and networking opportunities to help provide new perspectives on the way you do business! Create actionable and meaningful working moments with information that you can start using right away. Bring your team! Owners, managers, estimators, service writers, and senior technicians will all benefit from attending.

TUESDAY, APRIL 4

Off-Site ADAS Calibration Center Tour with Q&A

Location: LaMettry’s Calibration Center, Bloomington

Guided by Darrell Amberson & LaMettry’s Team Experts

Time: 1:00pm–4:00pm

Visit the LaMettry’s ADAS Center to learn first-hand what it takes to calibrate a vehicle from a company that is certified with 14 major manufacturers. Attendees will see space and technology requirements in action, have the opportunity to ask questions from team members who are deep into the details of both static and dynamic calibrations, and learn from leadership about the business implications of in-house versus subcontracted ADAS work. Transportation NOT provided.

“Writing and Negotiating Estimates from a Minnesota Expert”

Presented by Josh Shaw, Shannon’s Auto Body

Time: 1:00pm–4:00pm

By day, Josh Shaw works to keep Shannon’s Auto Body successful, which means happy returning customers, loyal skilled staff, and enough workload and profitability to support continual expansion. By night, Josh lends his time to coach others in the field, so this is your opportunity to learn from someone who knows what successful negotiations look like here in Minnesota.

The focus and topics:

• Capturing the low-hanging fruit (easy picking, easy documentation, easy to be paid)

• Battery D & R: Associated procedures, operations, and requirements

• Test Welds: Why? For what?

• Safe & Proper: How do you know? Who makes the call? You can’t save them all

• When do we get back to normal? Perspective and collaborative conversation

• Q&A

“Six Steps to Skyrocketing Your Bottom Line”

Presented by Rick White, 180BIZ

Time: 1:00pm–4:00pm

Do you feel like your business is struggling and you’re not sure how to fix it? Are you looking for a clear, step-by-step process to help your business grow and become profitable? This course is designed to help you do just that.

With a focus on practical, real-world strategies, this course will give you the tools and knowledge you need to take your business to the next level. Whether you’re just starting out or you’ve been in business for years, completing this course will help you achieve measurable growth and improve your bottom line. So why wait? Enroll today and start building a brighter future for your business!

Off-Site TOPGOLF Event

Location: TOPGOLF, Brooklyn Center

Time: 6:00pm-8:00pm

Fee: $100 per person, includes dinner and golf

TOPGOLF is the premier entertainment destination in Brooklyn Center, featuring an inclusive, high-tech golf game that everyone can enjoy. Players use TOPGOLF’s complimentary clubs (or bring their own) to take aim at giant

outfield targets and the high-tech balls do all the scoring. Paired with outstanding food and beverage, climate-controlled hitting bays and music, TOPGOLF has an energetic hum that you can feel right when you walk through the door. Transportation NOT provided.

WEDNESDAY, APRIL 5

Coffee with Vendors

7:30am–8:00am

Grab a cup of coffee and a Danish and visit with industry vendors and make some new contacts! Catch up on the latest and greatest in products and services and get answers to questions you haven’t had time to ask.

Opening Keynote: “The Champion’s Code, Part 1”

Presented by Ross Bernstein

8:00am–9:00am

Sponsored by LKQ-Minnesota

“The Champion’s Code: Building Relationships Through Life Lessons of Integrity and Accountability from the Sports World to the Business World,” is all about the DNA of champions in sports and how that relates to business. It’s based on more than six years of research that resulted in two critically acclaimed series of sports-business books.

Ross interviewed more than 1,000 professional athletes and coaches and along the way he saw some fascinating trends, patterns, metrics, and analytics develop among certain peak performers who possessed a very unique DNA. For these special individuals, or “champions,” it wasn’t always about winning, it was about following their moral compass’ to play the game the right way — with respect — to achieve success.

Ross will use inspirational stories and poignant life lessons from the world of sports to show you how to:

• Create a “culture of excellence” by giving extraordinary customer service…

• Generate momentum by utilizing the “currency of karma”…

• Follow their moral compasses to win “the right way,” with respect, ethics, and integrity…

• Be better leaders and create more “buy-in” by embracing change and failure

• Evolve from “order takers” to “trusted partners” by enhancing the quality of their relationships…

State of the Industry Report

Presented by Linden Wicklund, AASP-MN Executive Director

9:00am–9:30am

While there are no magic ball predictions of what business for Minnesota aftermarket shops will look like in the next few years, there is a wealth of information available for shops to look to. During this session we explore the data predictions from major researchers in the industry. Learn what the numbers have to say about the percentage of vehicles on the road that are already equipped with ADAS, when electric vehicles will be commonplace for most shops, how big the market truly is, where new hires are coming from, and other key factors to consider when business planning.

Round Table Discussions

9:45am–11:30am

Sponsored by Lube-Tech

You will have the opportunity to participate in three 30-minute round table discussions of your choice. All discussions are led by an AASP-MN member or industry expert. Topics include:

Leadership/General Business

1. Under Construction

2. Inclusive Shop Culture

Register 2 from the same company on Wednesday & get the third at 1/2 PRICE!

3. Customer Retention & 5 Stars

4. Hiring Students & Tech School Partnerships

5. Small Changes with Big Returns

6. ADAS

7. Electric Vehicles

Mechanical-specific

1. Hiring an Experienced Mechanic & Other Magic Tricks

Collision-specific

1. DRPs & OEM Certifications – When to Add or Drop

2. Negotiation Tips & Tricks

Lunch, Annual Meeting, Special Presentation: “The Why Behind Safe & Proper Repairs” by Marcia Seebachan & Vendor Showcase

11:30am–1:30pm

Many in the collision repair industry have heard of “the John Eagle Case” and used the findings of this case to defend their work. However, the idea that shops are liable for the repairs they perform goes far beyond traditional body shops. Service shops, parts recyclers, aftermarket part manufactures, and all the entities who educate and write about repair procedures play a part in making sure the vehicles on the road are road worthy, and crash ready.

In this presentation Marcia Seebachan will share first-hand accounts of the accident that changed her and her husband’s life, the resulting lawsuit Seebachan vs. John Eagle, and the message she wants the aftermarket industry to take to heart.

BREAKOUT SESSIONS: 1:45pm–2:45pm

“Wearing the C” Leadership/General Business

Presented by Ross Bernstein

Sponsored by CBIZ

This session is based on a critically acclaimed book Ross wrote in which he was able to interview more than 500 captains and coaches to answer one question: What is it that makes the great ones great? Ross will focus on dozens of amazing leaders from the world of sports and explain how they were able to create “buy-in” through some very unorthodox methods.

Ross will show you how to:

• Lead with integrity in order to achieve success

• Create buy-in to connect with millennials, boomers and challenging co-workers

• Generate momentum through leading by example and mentorship of others

• Create a winner’s mindset to stay self-motivated through good times and bad

“Profit Shouldn’t

Be an Accident” Mechanical

Presented by Rick White, 180Biz

Sponsored by Shopmonkey

Are you tired of struggling to make ends meet in your auto repair shop? Do you feel like you’re working hard, but never making the profit you deserve? In this fast-paced webinar, we’ll show you how to build a business model that puts profit first and helps you achieve your financial goals.

At the end of the webinar, you’ll have a clear understanding of how to put profit first in your auto repair business, so you can stop subsidizing repairs for customers and start making the money you’re worth. Join us and take the first step towards building a more profitable, sustainable business!

“Short Pay Resolution Pathways” Collision

Presented by Brian Chenvert, Insuraclaim

Sponsored by FinishMaster

The short pay landscape is changing, particularly as more shops are practicing balance billing which brings clear data to a previously hidden problem. This session will highlight the legal pathways in Minnesota and how to make use of them when advocating for fair pay. Advocacy and resolution can be found within your shop, with the Department of Insurance, or within the court system. Different pathways yield different results.

BREAKOUT SESSIONS: 2:45pm–3:45pm

“Preparing to Buy, Sell or Expand” General Business

Panel led by Brad Peterson, Sunbelt Business Advisors

Sponsored by 3M Automotive Trades Division

Shop owners are nearing retirement at record rates and newcomers to the market are disrupting the traditional owner-operator shop model. Ask questions from those who have been through it to help sort out what the future of your business should be.

“The EV Servicing Opportunity for Independent Mechanical Shop Owners”

Presented by Brett Kinsfather, Shopmonkey

Sponsored by Auto Value / Benco Equipment

With EV production on the rise and more than 60% of shops not actively servicing EVs, there is a tremendous business opportunity for the independent shop owner.

Developed in conjunction with Chris Salvo, President and Co-Owner of Electrified Garage, this program walks you through the spectrum of EV service opportunities that exist today, and offers attendees a roadmap for how to get started in servicing EV’s.

“Profitable Collision Repair Plans” Collision

Presented by Josh Shaw, Shannon’s Auto Body

Sponsored by AASP National

We all talk about quality and safe repairs, but how does that equate to profit for my business? This session will cover key items to include in collision repair plans to improve profit with minimal conflict.

Closing Keynote: “The Champion’s Code, Part 2” Vendor Showcase, Reception & Grand Prize Drawing

3:50pm–5:30pm

Grab a drink and some hors d’ oeuvres and settle in for the exciting conclusion of Ross Bernstein’s “The Champion’s Code.” He’ll leave you with a message that is sure to inspire and motivate—or even give you “New Perspectives” for life and business.

Following his presentation, you’re invited to mix and mingle with vendors and industry peers until our Grand Prize drawing at 5:30pm!

HOTEL INFORMATION

Minneapolis Marriott Northwest

7025 Northland Dr. N.

Brooklyn Park, MN

Group room rate: $149+/night

Reserve your room online at: https://bit.ly/AASPMNroomblock

AASP-MN Annual Meeting & Leadership Conference Registration

Attendee #1: ___________________________________________ Company:

Address: ____________________________________________ City: ______________________________ Zip:

Email: __________________________________________________ Phone:

Attendee #2: ____________________________________ Attendee #3: Optional Activities, Tuesday, April 4

Calibration Center Tour

Calibration, Bloomington

Conference Registration*, Wednesday, April 5

Registration includes all educational sessions, lunch, social hour & vendor reception!

EARLY BIRD PRICING (BEFORE 3/24/23)

Payment Options: _____ Check enclosed. Payable to AASP-MN _____ Credit Card* (Visa, MC, DISC & AmEx accepted)

*NOTE: A 3% surcharge is added to all credit card payments. This surcharge is not greater than our total cost of accepting credit cards. Does not apply to debit cards.

Credit Card #: ________________________________________________________ Expires: _____/_____ CVC:

Billing Address: Signature: ______________________________________________________________________ Date:

Return with payment to: AASP-MN 1970 Oakcrest Ave., Suite 102 Roseville, MN 55113

Email: aasp@aaspmn.org / Fax: 612-623-1122

Cancellations must be received no later than 3/24/23 to qualify for a full refund. After 3/24/23 no refunds will be issued, and no-shows will be billed.

*BUY 2, GET 3RD AT 1/2 PRICE! *BUY 2, GET 3RD AT 1/2 PRICE!

Benefits of A Business Owners Policy (BOP)

As a business owner, there is no shortage of things that you need to manage on a daily basis. Whether it’s supervising employees, connecting with new clients or anything in between, there is only so much time in the day. That being said, it’s nice to have the peace of mind that you and your business are covered in the event that an insurance claim is brought against you.

A business owners policy (BOP) is a good option for small and midsized businesses, and it can offer you plenty of advantages, including:

Broad coverage—BOPs cast a wide net of protection by bundling a number of different types of coverage into one plan. In general, BOPs provide commercial property, general liability and business interruption coverage in one policy.

Cost savings—Every dollar counts for small and midsized businesses, and BOPs can provide cost savings by combining the aforementioned policies so that you don’t have to go out and purchase each one separately.

Coverage for medical expenses—CGL policies will provide protection for your company if a nonemployee is injured on your premises or in an incident related to your operations. Coverage for medical payments can be triggered without legal action and allows for smaller medical claims to be settled quickly and without litigation.

Customization—While BOPs cover multiple types of risk for your business, you don’t need to worry about buying something that you don’t need. These policies can be tailored to fit your business’s needs with additional coverage for risks such as cyber liability, equipment breakdown, personal and advertising injury, and more.

Learn More About Business Owners Policy (BOP) Insurance

There’s no shortage of responsibilities or risks that come with being a business owner, so make sure that the product of all your hard work and long hours is protected. Contact Brad Schmid at CBIZ today to learn more about United Fire Group’s Garage Pro BOP at (763) 549-2247 or bschmid@cbiz.com

continued from pg. 9

Not All Vehicles Are Equal in Aftermarket Impact

The types of vehicles on U.S. roads are more important to aftermarket growth than the number of vehicles in operation.

The growth of older vehicles, light trucks and foreign nameplates on U.S. roads has increased the average aftermarket product volume per vehicle.

The growth of these three types of vehicles (and their miles on U.S. roads) will generate increased aftermarket product use over the next several years, even with a flat VIO.

Six Major Takeaways

• Three types of vehicles and their use (mileage) have a much greater impact on aftermarket product growth than the number of vehicles in operation (VIO).

• Older vehicles, light trucks and foreign vehicles are key factors in generating growth of aftermarket products.

• As vehicles increase in age, they consume more aftermarket products per mile than newer ones. Older cars and light trucks will continue to increase on U.S. roads, stimulating aftermarket product use.

• Light trucks average significantly more aftermarket product use per vehicle than passenger cars. Light trucks will continue to expand their VIO share over the next five years, boosting aftermarket product sales.

• Foreign cars and light trucks generally average higher repair and maintenance costs than domestic nameplates. Foreign nameplates will continue to increase their VIO share over the foreseeable years.

• Not all vehicles are equal in their impact on aftermarket growth. The increase in older vehicles, light trucks, and foreign nameplates will stimulate aftermarket product growth over the next few years, even though the VIO will not record substantial annual growth.

Applications for CREF’s 2023 School Benchmark Grants and Student Scholarships Open

Collision repair facilities around the country are in desperate need of new talent to address the ongoing workforce shortage, yet a lack of qualified young professionals are entering the industry for many reasons. Many schools’ collision programs are underfunded, and post-secondary students seeking to enhance their skills and knowledge often struggle to afford tuition and tools.

The Collision Repair Education Foundation (CREF) addresses these needs through its Collision School Career Readiness Benchmark Grants and Student Scholarship awards, thanks to support from many generous industry donors and sponsors.

In 2022, CREF awarded $436,000 in grants to nearly 70 schools, impacting over 35,000 students. The Benchmark Grants recognize those programs that excel at educating students but which require additional financial assistance due to constrained school budgets, providing funds to purchase the tools, equipment and supplies necessary to enhance their students’ learning experience and elevate the caliber of their graduates.

The 2022 Student Scholarships benefitted 46 students with almost $150,000 awarded in financial assistance to ensure those students were able to continue their education, preparing them to pursue a successful career in body shops around the country.

Applications for CREF’s 2023 Student Scholarships are now open, with a deadline of March 9, 2023.

Applications for CREF’s 2023 School Benchmark Grants are open through June 28, 2023.

To apply for a Benchmark Grant or Student Scholarship, visit bit.ly/CREFapply. Learn more about supporting CREF’s efforts to promote the industry to future generations at CollisionEducationFoundation.org

NOTE: AASP-MN is accepting student scholarship applications until March 31. Visit aaspmn.org/scholarships for more information.

continued from pg. 4

products, answer questions and connect with current and potential customers.

The conference is also our annual meeting where we recognize members for their participation in the Alliance and conduct the leadership turnover. This organization has been so successful because of the dedication and selflessness of the membership. Whether you’re new to the industry or a veteran, the Alliance is a great place to serve and help your industry. Each year, one of you has a piece of the puzzle that when we put it all together allows us to do great things. You may think you don’t have time, but the commitment isn’t huge. I guarantee you’ll walk away from each meeting having learned something new. So please step forward and volunteer or recommend someone for one of the collision, mechanical, associate or government/regulatory affairs committees.

I look forward to seeing you at the conference, April 5!

Negotiating Bankcard Costs

Mac Hardin – AASP-MN Bankcard Program

Back in the day, I worked in a gas station. While I was kept busy with oil changes, flat tires and the occasional innertube, the mechanics would be busy fixing anything that ailed a car. The words I would often overhear were plugs, points, condenser and timing. I had a hard time understanding what that all meant so, thankfully, I didn’t pursue a career that eventually turned into chips, codes and computers.

As AASP-MN’s “bankcard guy,” it’s my job to understand bankcard pricing. Hopefully, if you’re shopping your bankcard rates, what I have to offer will not only give you a better understanding, but might just reduce your costs.

These are three main pricing components: Interchange, assessments and the processor’s fees.

• Interchange: This is what the card issuing bank receives per card type (Rewards, debit, hand keyed, business, etc.). It is normally the largest part of the fee.

• Assessments: Visa, MasterCard and Discover, as the organizing entities for the card issuing banks, receive what is called assessments. It is important to note that the per-sale interchange and assessments are the same to each processor. That means the only place a business can negotiate is in what the processor charges.

• Processor Fees: This is where it gets interesting, and it’s where the opportunity is.

The single most important of all the possible processor fees is the percentage that is added to the sale. Consider this: If one tenth of a percent is charged on a $500 sale, that’s 50 cents. If the processor fee is .30 percent, that’s $1.50. While that extra dollar doesn’t sound like a huge amount on a $500

PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE

CBIZ

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

repair bill, sale after sale, it adds up. To put it another way, if you have $50,000 in bankcard transactions in a month, meaning $600,000 in a year, we’re talking $1,200!

The processor will most likely have no shortage of other transaction or monthly fees, including authorization charges, statement fees, monthly minimums, batch closing fees, PCI compliance fees, etc. And don’t forget the annual or quarterly charges that seem to creep in. While all the miscellaneous fees can pile up, it’s still the percentage that can most quickly inflate your costs.

Admittedly, deciphering your monthly statement can be difficult. Each processor has a different format. Oftentimes, their add-on percentages are buried in some other numbers. So, you may want to call your processor and ask what they charge for:

• Percentage added to the sale amount

• PCI charges, monthly, quarterly or annually

• Authorization or item fees

• Annual fees

• Batch closing fees

• Minimum processing charges

• Statement, or flat monthly fees

• Any, and all other fees

Not only are these questions helpful when dealing with your current processor, they’re good to have nearby when the annoying telemarketers call. It puts you in charge of the conversation.

If you have questions, or if you would like to see if the AASP-MN Bankcard program can reduce your costs, I can be reached at (612) 750-2988, or at mach@retailfinancialservices. biz

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, longterm 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 allin-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 all-in-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 live-online 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 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.

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.