AASP-MN News April 2018

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April 2018

www.grecopublishing.com

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CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2018 All rights reserved. Cover image © www.istockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

AASP-MN BOARD MEMBERS

Vol. 26 No. 4

PRESIDENT’S MESSAGE ........................................................4 Price, Value and the Parts Enigma

by Will Latuff, AASP-MN President

LEGISLATIVE UPDATE ..........................................................5 Governor’s Proposal Would Reverse 2017 Business Tax Relief

by Kevin Walli, AASP-MN Lobbyist

2018 - 2019 PRESIDENT Will Latuff IMMEDIATE PAST PRESIDENT Wayne Watson SECRETARY-TREASURER Carl Thomas

LOCAL NEWS ....................................................................6 NATIONAL NEWS ................................................................9 INSURANCE I.Q. ................................................................10 Garage General Liability

COLLISION DIVISION DIRECTOR Matthew Feehan

DEG ESTIMATING TIPS...........................................................13

MECHANICAL DIVISION DIRECTOR Randy Notto, AAM

AASP-MN 24TH ANNUAL GOLF OUTING REGISTRATION........................ 15

ASSOCIATE DIVISION DIRECTOR Dave Bock

PARTNERS IN PRVENTION ........................................................ 17 Grants Available

COLLISION SEATS Bruce Tschida, AAM Randy Miller

CASH IN ON YOUR MEMBERSHIP! ............................................22 AASP-MN and C.H.E.S.S. Team Up to Offer Members Safety Compliance Services

MECHANICAL SEAT Tom Archambault

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com CREATIVE DIRECTOR Lea Velocci | lea@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Kristen Dalli | kristen@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com www.grecopublishing.com

UPCOMING EVENTS

June 19, 2018

June 27, 2018

24TH ANNUAL GOLF OUTING Keller Golf Course 2166 Maplewood Drive Maplewood, MN 55109

CUSTOM MOTORCYCLE RAFFLE DRAWING Veit Automotive Foundation 914 80th St. NW Maple Lake, MN 55313

ADVERTISERS’ INDEX AkzoNobel ................................................8 AmeriPride ................................................20 Axalta Coating Systems ............................IFC Buerkle Hyundai ........................................16 Choice Auto Rentals ..................................18 Dentsmart ..................................................17 FinishMaster ............................................19 Inver Grove Honda / Inver Grove Toyota ....18 Jack McClard ............................................5 Keystone....................................................13 Maplewood Toyota ....................................12 AASP-MN News

Mills Parts Center......................................4 Morrie’s ....................................................16 Motorwerks BMW......................................IBC MPA ..........................................................11 PAM’s Auto................................................19 Proven Force ............................................24 Rosedale Chevrolet....................................12 Roseville Chrysler ....................................4 Sherwin-Williams......................................21 Straight & Square ......................................20 Toyota Group ............................................14 April 2018 | 3

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PRESIDENT’S MESSAGE

Price, Value and the Parts Enigma

by Will Latuff AASP-MN President

Parts are a large percentage of your business, regardless of whether you are a collision or mechanical repair shop. Parts play a critical role in profitability, cycle time, warranty costs and ultimately, customer satisfaction. Parts sourcing and procurement are no longer simple tasks as the market has evolved and become digitized to all stakeholders. The digitization of the parts has had a direct effect on price, value and parts purchasing.

Over the last five to seven years there has been a trend of companies introducing parts sourcing or ordering solutions in an effort to corner the market and achieve a specific outcome. Most of these solutions have been single-tasking solutions, where they only order new parts, or only locate alternative parts, or only work for a specific OEM. Some solutions such as CollisionLink were designed to free shops from the fax machine, ease parts ordering and allow OEMs to compete against alternative parts vendors on price. This was the beginning of the downward pressure on price. The responses to CollisionLink were solutions

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that enabled locating alternative parts from more vendors over greater geographic ranges. These solutions increased the total supply of available parts immensely. However, claims frequency has decreased and the law of economics states that when supply increases and demand decreases, price will go down. But why?

The decrease in price realized in the market is directly related to the loss of value in parts. Value and price are two different things. Value is what you receive, while price is what you pay. Ironically, there are similarities between insurers and shops with regards to value. Shops value service, speed and accuracy from a parts vendor and this is exactly what an insurer wants from a repairer, yet current parts solutions place value on price. This is evidenced in the used parts market by parts sourcing solutions that display used parts priced as clean and undamaged alongside parts priced as-is, and treating them as equals. These results are ranked or recommended based solely on the selling price. This strategy has become apparent to parts suppliers, and in an effort to combat an ever-expanding continued on pg.21

AASP-MN News

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LEGISLATIVE UPDATE

Governor’s Proposal Would Reverse 2017 Business Tax Relief The 2017 Tax Bill provided relief for businesses from the statewide Business Property Tax. The first $100,000 of property tax value was exempted from the tax and the automatic inflation adjustment to increase the tax was eliminated.

In mid-March, the Governor submitted his supplemental budget proposal which includes a number of tax provisions. He would retain the $100,000 property tax value exemption but he would reinstate the inflation adjustment to automatically increase the tax by the annual rate of inflation. Business groups are looking to preserve the removal of the automatic tax inflator.

This business tax issue is being considered in the context of a much broader set of tax reforms which are necessary as the state conforms with the federal tax law changes enacted in late 2017.

Governor Dayton’s proposal would focus on reducing the tax burden on low-income and middle-class families. In order to ensure that the revenue is available to protect this class of taxpayers, the Governor proposes to repeal a number of the 2017 tax breaks which he regards as “unaffordable.” These include a

by Kevin Walli AASP-MN Lobbyist

tobacco tax break and a reduction of the state income tax rate for the highest-earning Minnesotans.

We will be watching closely as the Tax Committee addresses federal tax conformity issues so that we can report on the implications for AASP-MN members. In addition to following matters on the tax front, there are a number of other issues which may be addressed yet this session.

Among the legislative proposals, we are tracking the following: -A proposal to specify the type of services that can be provided under Vehicle Service Contracts; -A bill which would change the criteria for insurers’ application for a salvage certificate of title; In addition, we watch the whole range of bills relating to insurance or environmental regulation to determine whether there is any impact on collision or mechanical repair shops.

We will be vigilant in our review of these measures right through to the end of session – which will run until May 21.

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LOCAL NEWS

AASP-MN Announces 2018 - ’19 Board of Directors April marks the beginning of service for the 2018 - ’19 AASPMN Board of Directors. The association is pleased to welcome Randy Miller (Collision Specialists, Inc., Austin) and Tom Archambault (St. Anthony Mobil, St. Anthony) to the Board of Directors. They join other members of the Board, which include: • Will Latuff, Latuff Bros., St. Paul – President • Wayne Watson, Autoworks Automotive Service Center, Woodbury – Immediate Past President • Carl Thomas, Lancer Service Auto Care, St. Paul – Secretary/Treasurer • Dave Bock, Auto Value Parts Stores/APH, St. Cloud – Associate Division Director • Matthew Feehan, American Auto Body, Brooklyn Park – Collision Division Director • Randy Notto, Lenfer Transmission, Lino Lakes – Mechanical Division Director • Bruce Tschida, AAM, Lake Marion Collision, Lakeville – Collision Seat

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Jake Moser, Hopkins Auto Service, Hopkins Randy Notto, Lenfer Transmission, Lino Lakes Mars Overlee, Rick’s 36 Automotive Services Tom Phillips, Hennepin Technical College, Brooklyn Park • Aaron Rolfsrud, Master Collision, Bloomington • Dan Sjolseth, Superior Service Center, Eagan • Wayne Watson, Auto Works Automotive Service Center, Woodbury

AASP-MN also extends a sincere thank you to this year’s outgoing board members: • Greg Kasel, Downtown Tire & Auto, Hastings • Mars Overlee, Rick’s 36 Automotive Service, Stillwater

Volunteers are the heart and soul of AASP-MN, and we appreciate the leadership and commitment of these dedicated members.

1st Place Pedal Car Challenge Winner: South Central College, Mankato

AASP-MN Announces 24th Annual Golf Outing AASP-MN invites all collision and mechanical industry professionals and vendor suppliers to attend its 24th Annual Golf Outing on Tuesday, June 19 at Keller Golf Course in Maplewood.

Over 150 AASP-MN members, employees, vendors, and insurance industry representatives are expected to enjoy the day of golf and socializing.

Play will begin at noon, followed by a social hour and awards presentation. The cost to participate is $100 per golfer or $400 per foursome. Golf holes are also available to sponsor for $350 each.

For additional information, see page 15 or contact the AASPMN office at (612) 623-1110 or 800-852-9071 or online at www.aaspmn.org.

MNCARS Spreads its Message at World of Wheels AASP-MN member volunteers were out in full force at the MNCARS display booth during the World of Wheels show, March 23 - 25, at U.S. Bank Stadium, Minneapolis. Member volunteers were on hand to spread the MNCARS message about the rewarding careers in the auto service and collision repair industry and encourage attendees to pursue a two-year degree in the field at one of Minnesota’s technical colleges.

During the Student Day portion of the event, AASP-MN and other industry representatives also had the opportunity to present information to over 300 students that attended. In addition, students were able to see and admire the technical skills of eight teams that entered this year’s Pedal Car Challenge.

Thank you to the following AASP-MN members for making this event a success: • • • • • •

Tom Archambault, St. Anthony Mobil, St. Anthony Dave Bock, Auto Value Parts Stores/APH, St. Cloud Roger Bonn, Sartell Megan Farrand, Apple Valley Collision, Apple Valley Jesse Jacobson, Heppner’s Auto Body, Woodbury Greg Larsen, Crystal Lake Automotive, Lakeville

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AASP-MN News

Over 300 students attended Student Day

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2018 SkillsUSA Contest Winners Announced The 51st Annual Minnesota SkillsUSA competitions for collision repair and automotive service technology were held Saturday, March 24 at South Central College, Mankato. The competition allows high school and college students to demonstrate their abilities and talents in collision repair and automotive service. AASP-MN volunteers were out in force to help plan, organize and judge the competition.

Congratulations to the following SkillsUSA contest winners: Auto Refinishing Technology College Division 1st Place – Isaac Regla-Breton, South Central College, Mankato 2nd Place – Trevor Bitterman, South Central College, Mankato 3rd Place – Dalton Potter, South Central College, Mankato

Collision Repair Technology College Division 1st Place – Jared West, St. Cloud Technical & Community College, St. Cloud 2nd Place – Angel Paucar, Dunwoody College of Technology, Minneapolis 3rd Place – Carl Borlels, Ridgewater College, Willmar Automotive Service Technology High School Division 1st Place – Dylan Parsons, Minnesota State College, Moorhead 2nd Place – Jon Hausen, Faribault High School, Faribault 3rd Place – Tyler Oehmen, St. Cloud Technical & Community College, St. Cloud College Division 1st Place – Sam Peterson, St. Cloud Technical & Community College, St. Cloud 2nd Place – Kyler Adams, St. Cloud Technical & Community College, St. Cloud 3rd Place – Nicholas Dobbs, Ridgewater College, Willmar

The first place winners will go on to compete in the national SkillsUSA Championships this June in Louisville, Kentucky.

“These students are demonstrating more than just their skills; they are proving that our workforce is prepared to lead the way in every technical area our country needs to maintain a strong global economic presence,” said Jennifer Polz, SkillsUSA State Director. “We are very proud of this talented group of students who are truly champions dedicated to excellence in their trades.”

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Subaru to Certify Shops Subaru of America has announced it will launch a collision shop certification program, working with Wadsworth International.

The companies say that use of Solera's AutoWatch product, which documents the repair process and updates vehicle owners, will be part of the program. For more information, shops can call Wadsworth at (877) 257-0046 or email info@wadsworthint.com.

Ford Updates Repair Info The latest issue of Ford's On Target newsletter (www.oem1stop.com/content/ford) includes information on differences the automaker found between its hood and bumper brackets for the 2012 F-150 and several non-OEM versions of the parts. The automaker also has updated Ford and Lincoln position statements (also found at www.oem1stop.com) on such topics as clearcoat blending, "clip" repair procedures, structural repairs and remanufacturing or refinishing of steel or aluminum wheels.

Jobbers Lose Share of Foreign Sales Traditional automotive jobbers in the U.S. expanded their foreign nameplate car and light truck product sales by approximately $0.6 billion between 2012 and 2017 at user-price.

Foreign nameplates climbed from 27 percent of the average jobber’s 2012 product volume to over 30 percent share by 2017.

While traditional jobber foreign nameplate product sales increased at nearly a four percent annual rate over these five years (2012 to 2017), foreign nameplate car and light truck products across the U.S. soared at an even faster yearly pace. As a result, jobber foreign nameplate product growth failed to keep pace with the accelerating rate of foreign nameplate aftermarket product expansion in the U.S., causing jobber foreign nameplate product sales share to shrink between 2012 and 2017.

GM to Hold Certified Shops to High Standard Stressing customer education and a quality repair as paramount, General Motors has outlined some of the standards to which it will hold auto body shops in its upcoming certified collision repair network.

The nation’s No. 1 automaker will track key performance indicators such as whether a shop is following OEM repair procedures, scanning and recalibrating vehicles, customer care and aftersales, collision manager John Eck said in an interview in March.

He said General Motors plans to emphasize repairers with technicians, estimators, welders and painters at an appropriate level of I-CAR training and will be less likely to recommend shops using components such as salvage structural parts.

Eck said metrics like following repair procedures, scanning, calibration and quality control would be used to generate a score for auto body shops in the network.

Higher-scoring certified shops in the market are more likely to be suggested to a customer through a General Motors platform such as OnStar, Eck said.

Behavior of repair and output will drive a shop’s score — and a shop will know how they’re being graded — according to Eck. If a shop is fixing vehicles in a fashion acceptable to GM, the repairer

NATIONAL NEWS

will score well.

Eck said General Motors will require structural steel and nonstructural technicians to be I-CAR ProLevel 2 from the start, and “our goal” is for all of them to be ProLevel 3 by 2020.

All three components of I-CAR’s welding certification program will be required — including the aluminum welding segment.

Eck said GM also was paying attention to the quality of employees like estimators and painters.

He said GM hadn’t figured out what threshold an estimator will be required to meet, but pointed out the position held greater depth than its name suggested, such as repair procedure research and blueprinting.

Eck said GM also “absolutely” cared about the talent of refinishers, as it wanted a vehicle to be returned to a customer with both a structurally sound repair and a cosmetically pleasing appearance.

Eck said General Motors engineers will provide the list of equipment, but he said the OEM would likely only demand a couple of brand-specific items. Other equipment requirements could be met by any gear meeting certain specifications, regardless of manufacturer.

He did offer some details about what a shop will need.

Repairers will need a frame machine able to perform vehicle measurements. However, shops won’t need a pricey rivet gun; that requirement will continue to stay isolated to Cadillac CT6 repairers certified under a separate network.

General Motors will require all certified shops to have a set of dedicated tools, dedicated space and an aluminum dust extraction system, according to Eck. The OEM had “too much aluminum” not to do so, Eck said. The OEM won’t follow the lead of rival Ford and allow shops to have separate certifications for steel vehicles and aluminum ones; everyone needs to be aluminum-ready.

General Motors won’t restrict the sale of parts to uncertified shops, Eck said, noting that doing so could have negative ramifications for cycle time.

However, GM will frown on certified repairers installing used versions of “very safety-oriented” structural parts like quarter panels.

“That practice has to go away,” Eck said. “Those are the things that we’re going to be monitoring in the program.”

Asked about aftermarket parts that could be considered safetyrelated, such as wheels or bumper beams, Eck said the OEM would be considering such items over the coming months and hadn’t reached decisions on every one yet.

“It’s about a safe, proper repair,” Eck said. “…We have a very clear vision of what we want for our customers, that their safety is our overriding priority.”

The program will be open to independent shops as well as dealership shops, according to Eck. Asked about caps on the number of shops in individual markets as well as nationwide, Eck said, “we’re not worried about a number right now.”

Eck projected GM would start taking enrollments sometime between the end of the third quarter (which ends Sept. 30, 2018) and start of the fourth quarter.

Shops interested in joining the network should continue to check www.genuinegmparts.com for more information, and Eck said another announcement about the program should be coming soon.

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INSURANCE I.Q.

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COVERAGE INSIGHTS

Garage General

Liability

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Commercial garages can be full of a number of hazards. ! ! ! ! ! ! ! ! !

They are often filled with moving vehicles, expensive ! equipment, ! ! ! ! ! ! ! ! a surplus of employees and potentially ! ! ! ! tools. ! Even ! ! safest! garages ! !! occasionally dangerous the will !

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have accidents, and that’s why it’s essential to make sure ! ! is covered. ! ! ! ! ! that! your business

That’s where garage general ! ! ! ! ! ! liability! (GGL) ! coverage !

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GGL can basically be thought of as a! ! ! ! ! ! ! ! ! combination of a commercial general liability policy and a ! ! ! ! ! ! ! ! ! ! business auto policy that’s designed to cover the typical ! ! ! ! ! ! ! operations of commercial garages.

However, as with most ! ! ! ! ! ! insurance policies, there are some important exclusions and distinctions you should understand as you elect your ! coverage. ! ! ! ! !

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Garage General Liability: An Overview ! ! ! ! ! ! ! ! ! ! ! Garage ! general ! ! ! ! ! ! liability is designed to cover losses that ! ! could occur ! in!!the day-to-day operations of your garage. A

standard garage general liability policy breaks down covered( liabilities (into two classes: ( distinct ( ( ( !

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• Garage operations other than covered autos. This section ! ! ! ! ! ! ! ! ! ! ! includes coverage liability for property damage to the ! ! ! ! ! ! garage itself, as well as bodily injury to owners, their employees and their customers.

• Operation of coverage ! of ! autos. ! This !refers ! to aspects ! analogous !to! many a ! business ! ! auto ! policies. ! Specifically, ! !

GGL policy will cover vehicles owned by the business, ! ! ! ! ! ! ! ! ! ! vehicles! being !held ! for sale ! or !any! other! vehicles ! ! owned by someone else and being used in business operations. For ! ! ! ! ! ! ! example, this would include damages incurred if a ! ! ! ! ! ! ! ! ! business’s manager is driving a demo vehicle and causes ! ! ! ! ! ! ! ! ! an accident, or if the company’s parts driver gets in an ! ! ! a delivery. ! ! ! ! ! accident while making ( (

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The of which is the ! exclusions. ! ! ! most !important ! ! ! “care, custody! or control”! exclusion. This means that ! ( ! ! personal ! ! property left in the care, custody or control of the garage— ! !!

including, significantly, customers’ vehicles—will not be covered by the GGL policy.

! ! ! ! ! ! ! ! ! ! ! ! If a customer’s ! ! car !is !damaged ! ! company’s ! ! while! in your ! ! if it! causes !damage !while ! ! company’s ! care, or in your care, your GGL ! !could! leave ! ! you! exposed. However, a! separate coverage sold along ! commonly ! ! ! with a! GGL policy— ! ! ! garagekeepers coverage—is designed specifically to !

provide coverage for that exposure.

Keeping you Covered !

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! ! at CBIZ ! ! here ! to! help you! find the! !

Your !partners are coverage.

To learn more about! your GGL ! appropriate ! ! ! ! ! ! coverage options, or for more information on ! garagekeepers coverage, contact us today.

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Contact Brad Schmid at bschmid@cbizaia.com or 763-5492247.

PROVIDED BY CBIZ This Coverage 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. © 2016 Zywave, Inc. All rights reserved.

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ESTIMATING TIPS Audatex: Non-Included Operations in Door Shell Labor Times Recent DEG Inquiry 11797 addresses not-included considerations in door shell replacement.

Door shell transferal of small grommets, clips or fasteners is not included in the Audatex provided labor values. This would require an on-the-spot evaluation of additional labor time if required when replacing door shells in the Audatex database.

Glued-on weather strip measuring is included in Audatex provided labor values, whether installing or transferring to a new panel. Weather strip cleanup time is not an included operation; please see the DBRM Section 4-3 Replacement & Recycled Operations.

Mitchell: Vacuum-Fill & Bleed Cooling System When cooling radiators need to be R/I or R/R during the repair process, the coolant fill may be required to perform VacuumFill & Bleed operation. If this process is required, this is NOT INCLUDED and would need to be selected from the “Add To” section of the part selection screen. This can be found under the “Cooling” section in the part selection menu.

All Three Estimating Systems: Air Conditioner On A/C systems that have been damaged by collision or have been open and exposed and not immediately sealed, the receiver dryer or desiccant element should be replaced.

During A/C R134a and R1234yf evacuate and recharge process, testing for leaks is NOT INCLUDED. Cost of refrigerant, oil and seals are not included in labor times.

Mitchell: Quarter Panel Replacement When performing quarter panel replacement, the labor procedure does not include allowances for necessary precautionary measures to remove undamaged urethane-set glass, nor clean-up of the old adhesive on the glass. If the existing urethane-set glass is undamaged and will be reused, the labor time difference between the glass R&R and R&I represents the not-included allowance. This additional labor option is available to select in the “Add to R&R” in the part selection menu.

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.You can view these tips and others on the DEG website,WWW.DEGWEB.ORG.

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Registration Deadline June 5th

24th Annual

Tuesday, June 19, 2018 Keller Golf Course 2166 Maplewood Drive St Paul, MN 55109

AASP-MN Golf Outing Fees Include: • 18 Hole Green Fees • Golf Carts • Contests _Closest to the Pin _Longest Putt _Longest Drive _and MORE! • Prizes • Social Hour/Light Dinner

12:00 p.m. Shotgun Start Check-in 11:00 a.m. - 11:30 a.m.

Four person scramble $100 per golfer/$400 per team

AASP-MN 24th Annual Golf Outing Registration June 19, 2018 – Keller Golf Course

Name: _____________________________________ Company: ______________________________________________ Address: ___________________________________________________________________________________________ City: ________________________________________________________ Zip: __________________________________ Phone: ______________________ Fax: ______________________ Email: _____________________________________ 1st Player: 2nd Player: 3rd Player: 4th Player:

__________________________________________ Company: __________________________________________ Company: __________________________________________ Company: __________________________________________ Company:

____________________________________ ____________________________________ ____________________________________ ____________________________________

Payment Options: _____ Check enclosed. Payable to AASP-MN _____ Credit card (Visa, MasterCard, Discover & American Express accepted)

Credit card #: ______________________________________________________________________________________ Expires: ____________ CVC#: ______________ Signature: ________________________________________________ Return to:

AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 612- 623-1110 (ph) / 612-623-1122 (f) / aasp@aaspmn.org (e) AASP-MN News

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PARTNERS IN PREVENTION

Grants Available Have you thought about making changes at your shop, but the price tag held you back? If the changes will reduce the use of certain chemicals, you may be eligible for a grant from the Minnesota Pollution Control Agency (MPCA).

The chemicals in question are known as VOCs – volatile organic compounds. You may recognize them as the odors coming from paints, thinners and parts washers. VOCs are common air pollutants that affect everyone’s health, both inside and outside the shop. They can cause health effects like eye and throat irritation, headaches and nausea. VOCs become smog when they are vented from your shop and released into the community.

The grants are part of Minnesota’s effort to keep our skies clean and our air healthy to breathe by reducing the use of VOCs. Because VOCs are present in so many products and processes, a wide variety of projects can be covered by grant funds. Here are some ideas to consider: switching to waterborne paints, shifting to low-VOC reducers or thinners, getting non-solvent parts washers, using low-VOC cleaners and refillable spray cans, upgrading old equipment or buying hybrid courtesy vehicles.

Need more ideas? The Minnesota Technical Assistance Program (MnTAP) can help you figure out good ways to reduce VOCs in your shop. MnTAP is a program of the University of Minnesota that provides free industry-tailored technical assistance. Your jobbers and paint supplier are also good sources of ideas. New and innovative projects are welcome.

Grants can be up to $24,000. You are only required to match

50 percent so a $10,000 booth upgrade to switch to waterborne paints might only cost you $5,000. Your match can be cash or an in-kind donation such as staff time.

Businesses with fewer than 500 employees, schools, trade associations and non-profit groups are all eligible to apply.

The most cost-effective projects are more likely to receive grant funding. Consider the cost of your project and the amount of VOCs that will be reduced in dollars per pound. Cost-effective projects minimize the dollar cost and maximize pounds of VOCs reduced. Projects that cost less than $6 per pound have a better chance of receiving a grant than those that cost more per pound.

Look at the evaluation form in the Request for Proposals to see the list of criteria that will get you “extra credit,” such as where you are located, number of employees or ownership. You can review the grant materials, including frequently asked questions and answers, the RFP and the short two-page application, at www.pca.state.mn.us/voc.

Never applied for a grant before? Staff at MnTAP will work with you to figure out a project and help you calculate costeffectiveness. Contact Matt Domski at MnTAP at 612-624-5119 or domsk004@umn.edu.

Twenty-one Minnesota organizations have already been granted $660,000 to reduce VOCs. Learn about past projects and get ideas for your shop at www.pca.state.mn.us/voc.

Grants will be awarded until the program runs out of money, so act soon.

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LOCAL NEWS Attention Diesel Instructors and Aspiring Diesel Technicians Standard Diesel will be awarding three $5,000 scholarships to students enrolled in a diesel repair program. Visit: applaunch.net/Promotions/PromoNew/PromoLogin_Diesel.aspx to enter a chance to win by June 29, 2018.

Contact your Standard Motor Products representative if you have any questions about the contest entry criteria. continued from pg. 7

Sponsorships Support AASP-MN’s Educational Programs & Other Activities in 2018 Sponsorships help AASP-MN deliver the quality programs members expect, and keep registration fees affordable. To date, the following companies have made sponsorship commitments:

GOLD AASP National AmeriTrust Group Auto Value Parts Stores/APH Axalta Coating Systems CBIZ AiA FinishMaster PPG Automotive Finishes United Fire Group

SILVER aaa Auto Parts Enterprise Rent-A-Car LKQ/Keystone Automotive O'Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet

BRONZE Casualty Assurance of Chaska C.H.E.S.S. Lube Tech & Partners Sherwin Williams

OTHER Choice Auto Rental Dent Impressions Monroe Moxness Berg, PA

VENDOR Accessory Pro Warehouse AmeriPride Services Autoshop Solutions Dentsmart PDR Heartman Insurance LKQ Viking Auto / LKQ Minnesota NAPA Auto Parts NCS/Single Source Net Driven The Matrix Wand Workplace Safety Consultants AASP-MN News

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WELCOME NEW MEMBERS:

MARCH 2018

The Body Shop Lake City

Transmission Doctor Plus Apple Valley

Wallace Auto & Collision Benson

Dick’s Hot Rod Shop Lakeville 20 | April 2018

AASP-MN News

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PRESIDENT’S MESSAGE marketplace and preserve or gain market share, the decision is made to compete on price alone. This pricing strategy can work, but relies heavily on volume to make up for lower profits on per-unit sales. The downside to competing solely on price is that it is easily replicable by competitors and quickly becomes a race to the bottom. This leads to an enigma for shops.

Since the focus on parts has been strictly cost, this has allowed sourcing solutions to come to market that don’t necessarily meet the needs of the business buying the parts. The focus on price has increased documentation requirements from insurers to stray from the cheapest part. The sheer amount of parts results provided in these solutions slows sourcing decisions as employees must wade through lists of results to choose the correct part for the job. The expansion of markets through the digitization of parts has introduced shops to new and unknown vendors. Fear of the unknown makes shops use multiple parts systems in an effort to price match parts and avoid working with new vendors, even if they might be good vendors. These inefficiencies in the parts market offer the greatest opportunities for all stakeholders to benefit.

The steps to realize the next level in parts sourcing require a win-win-win approach for vendors, shops and insurers.

Keys to improvement will come through advancing the technology and algorithms used to locate parts. For example, used parts will need to be displayed on a level playing field. Parts priced as-is will need to have all damage codes added to the parts price based upon the labor rate on the estimate. This will allow clean, undamaged parts to be directly compared to as-is parts. The next advancement in parts sourcing will come from an open platform approach. Shops will need to be able to use one ordering interface to send orders across all required parts sourcing solutions. This will simplify ordering for the shop while still allowing insurers, OEMs and vendors to meet their procurement goals. The final and possibly largest benefit that can be realized will come with the advent of parts vendor DRPs or certifications which contain continued from pg. 4

The downside to competing solely on price is that it is easily replicable by competitors and quickly becomes a

race to the bottom. This leads to an enigma for shops.

feedback channels and performance-based accountability similar to the DRP scorecards of today.

These advancements will help unravel the enigma of the parts market while providing win-win-win solutions to all

AASP-MN News

stakeholders involved and the benefits of these efforts will be realized by the consumer. The ever expanding and evolving parts marketplace has a bright future – once the focus shifts to value instead of price.

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CASH IN ON YOUR MEMBERSHIP!

AASP-MN and C.H.E.S.S. Team Up to Offer Members Safety Compliance Services

Complete Health, Environmental and Safety Services, Inc. (C.H.E.S.S.) offers AASP-MN members a 20-percent discount on the following services:

Right to Know (RTK)/Hazard Communication You must train employees before they start work and annually. You must have a written program. The C.H.E.S.S. Right to Know Written Program and Training Guide is customized for your facility, whether you offer collision or mechanical repair. The written program and training guide is available exclusively to AASP-MN members for $300.

Safety Data Sheet Management As part of the Right to Know/Hazard Communication OSHA law, you must provide your employees access to Safety Data Sheets (SDS) for the products in your shop.

C.H.E.S.S.’ SDSLinks, an online SDS management tool, makes them easy to find. C.H.E.S.S. also provides support 24/7 if you cannot locate one. SDSLinks is available exclusively to AASP-MN members for $300 per year.

Safety Reminder Posters OSHA has some regulations, such as walking and working surfaces and ladder use that require training.

Keeping safety in front of employees on a regular basis is one way to help reduce injuries. C.H.E.S.S. will email you a poster on a different topic each month relating to safety issues found in your shop. You can post it or review it with employees in a shop meeting. The Safety Reminder Posters program is available exclusively to AASP-MN members for $240 per year.

All of these services can be bundled for a fee of $800, with annual renewal of the SDSLinks and posters for $525.

In addition, C.H.E.S.S. offers up to one hour of free phone consultation to any AASP-MN member with safety or environmental questions.

For more information, contact Carol Keyes at 651-4819787 or carkey@chess-safety.com.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE AmeriTrust Group (formerly Meadowbrook Insurance Group) Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums. Ask about our program with United Fire Group!

EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, longterm care and disability insurance.

UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.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 each year.

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WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up).

Net Driven Contact: Rich Mullen 877-860-2005, ext. 224 / rmullen@netdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees.

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.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE and Teamworks products. For more information, contact Customer Service at 888-724-6742, ext.

6986.

Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aaiassessment.com / www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. (CHESS) Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20 percent 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.

AASP-MN News

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.

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.

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).

Members who switch prior to June 30 will receive first month of payroll processing free.

BUSINESS COACHING 180biz 540-833-2014 / info@180biz.com Website: www.180biz.com Members receive a 20-percent discount on oneon-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments.

Members also receive a 25% discount on monthly sales & management webinars as well as a 20percent discount on all 180BIZ advisor training programs.

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AASP-MN News

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