AASP-MN News April 2023

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April 2023 grecopublishing.com • AASP-MN Announces 2023-24 Board of Directors • 28th Annual AASP-MN Golf Outing Announced PLUS: Winter Is Ending: A Bright Economy on the Horizon for Shops
AASP-MN News 2 | April 2023 CALL US TODAY!! (320) 363-4107 Mike: (320) 267-2102 Randy: (320) 428-6200 www.straight-square.com 30659 Pearl Drive Unit #3 • St. Joseph, MN 56374 The only thing you can compare a Pro Spot to is... Another Pro Spot!

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UPCOMING EVENTS

First Wednesday Each Month, 8:00–9:30am Southern Metro Collision Shop Meeting Dakota County Technical College, Rosemount

Second Wednesday Each Month, 7:30–9:30am St. Cloud Area Collision Repair Alliance Meeting APH Headquarters, St. Cloud

Third Tuesday Each Month, 9:00–10:00am Mechanical Monthly Morning Zoom Meetup

Third Thursday Each Month, 9:00–10:00am Collision Monthly Morning Zoom Meetup

June 21

28th Annual AASP-MN Golf Outing Majestic Oaks Golf Club, Ham Lake

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. PRESIDENT’S MESSAGE ..........................................................4 Strategic Planning is Important for Businesses of All Sizes by Mike McLynn, AASP-MN President LEGISLATIVE UPDATE .............................................................5 Electric Vehicle Policy and Funding Proposals Prioritized by DFL by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists LOCAL NEWS ..........................................................................6 28TH ANNUAL AASP-MN GOLF OUTING REGISTRATION .......7 NATIONAL NEWS ....................................................................8 D.E.G. TIPS ..............................................................................10 COVER STORY ........................................................................14 Winter Is Ending: A Bright Economy on the Horizon for Shops by Chasidy Rae Sisk COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S) ...............................................................................16 Ever Clean House? by Janet L. Keyes, CIH INSURANCE I.Q. ......................................................................18 Benefits of Business Interuption Insurance CASH IN ON YOUR MEMBER BENEFITS! .................................22 Aramark: The Partner You Need to Do Your Image Proud ADVERTISERS’ INDEX Aramark 17 Benco Equipment 10 CBIZ 19 Dentsmart 20 Inver Grove Honda ..................................... 23 Inver Grove Toyota 23 Jeff Belzer’s Roseville Auto, Inc. 2 Keystone 11 Maplewood Toyota 2 Mills Parts Center 20 Morrie’s 11 Proven Force OBC Reliable Automotive Equipment.......12-13 Spanesi ................................................... IBC Straight & Square 2, 21 Toyota Group 20 Thomas Greco Publishing 23 Womens Industry Network 23 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. ©2023 All rights reserved. Cover image www.istockphoto.com. AASP-MN BOARD MEMBERS 2023 - 2024 PRESIDENT Mike McLynn IMMEDIATE PAST PRESIDENT Jesse Jacobson SECRETARY-TREASURER Aaron Swanson COLLISION DIVISION DIRECTOR Travis Doyle MECHANICAL DIVISION DIRECTOR Dan Gleason ASSOCIATE DIVISION DIRECTOR Paul Yager COLLISION SEAT Shannon Christian MECHANICAL SEATS Tim Kruze Randy Notto STAFF EXECUTIVE DIRECTOR Linden Wicklund OFFICE MANAGER Jodi Pillsbury 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 |
AASP-MN News April 2023 | 3 Vol. 32 No. 4 @grecopublishing

Strategic Planning is Important for Businesses of All Sizes

Over the past six months, the AASP-MN Board has created a new strategic plan and started to put it into action. During the process, the thing that stood out to me was how important this sort of business analysis and planning is as important for our members as it is for the association. We hired Cincinnatus, the same consultant we brought in for the executive director search, to lead the strategic planning workshop. Here are the reasons we, board members and staff, were told a strategic plan is important and what to expect from one:

• Powerful strategies to drive the organization forward

• A foundation for organizational communication

• Synergy between leadership/board and staff

• A roadmap for dealing with change

• A doable amount of work for leadership/board and staff

• A framework for allocating resources (human and financial)

• Benchmarks and accountabilities to assess progress

Don’t these all sound like they would be very helpful in any business? As a small business, it is so easy to get caught up in the day-to-day and forget to step back and ask questions like:

• Is the company growing or shrinking?

• Are we doing the things we are doing on purpose and are they going to serve us in the future?

• What do we need to start doing now to be ready for change, both anticipated and unanticipated?

• Are we doing things that are unsustainable?

• Is scaling up through shop size, staff size or taking on another location critical to deal with new technology and relevant business models for today?

As I look at my own business, I think about what it takes to fix the range of vehicles we have been accustomed to working on and wonder if I should be doubling my team and equipment to accommodate the same range moving forward or if I should keep the same size team but specialize in a smaller range of vehicles. It seems to me like it is all too easy to have a business shrink on accident or to unintentionally keep fixing the same sorts of cars and then suddenly find

the shop isn’t capable of, or prepared for, taking on newer technologies.

My hope is that as the Alliance executes its strategic plan, we can also model for members what this looks like in real-time and inspire them to consider similar planning. As the incoming President, I’m grateful to have a plan in place that I can look to when evaluating if we are on track and heading in the right direction. So, what is in the plan? Here are the toplevel goals:

1. Tackle Workforce Shortage Issue with Broader Lens

2. Build on the Alliance’s Tenure as a Leader

3. Lead by Amplifying Member Voices

In action, this means things like continuing our existing workforce programing with MNCARS while also looking to the data for where shops might find employees right now outside of technical schools, expand our current legislative work to include workforce development and position independent shop ownership as a workforce issue.

We all make so many little decisions every day in our business that impact if we are moving toward or away from our long-term goals. I hope more shops carve out some time for business planning to make sure all those little everyday decisions are actually taking them where they want to go.

I look forward to serving the membership as the President over the next year and welcome any feedback on what you would like to see from the organization.

AASP-MN News 4 | April 2023
PRESIDENT’S MESSAGE
WELCOME NEW MEMBERS! MARCH 2023 Advantage Auto Glass Savage, MN CARSTAR Precision Collision Cold Spring, MN

Electric Vehicle Policy and Funding Proposals Prioritized by DFL

As mentioned in the March issue of AASP-MN News, with the DFL controlling the legislature and Governor’s office, there has been a shift in focus toward investing in renewable energy and efforts to address climate change. A bill requiring utilities to produce all energy from carbon-free sources by 2040 quickly moved through the legislative process and was signed into law by Governor Walz in the opening weeks of session. Some of the clean energy focus has now shifted to the transportation sector.

To that end, there have been many bills related to clean transportation broadly and more narrowly focused bills such as investments in electric vehicles (EVs) and charging stations. While scores of bills have been introduced, many were not heard before the first committee deadline and will not move forward this session. Several bills that did receive hearings before the deadline could dramatically increase the number of EVs on the road, and as a result, in repair shops.

Starting with perhaps the most comprehensive, SF 2584 titled the Clean Transportation Standards Act would require carbon intensity from transportation fuel supplied to Minnesota be reduced by 25 percent by 2030, 75 percent by 2050 and 100 percent by 2050. The bill also includes provisions for bolstering the EV market, including funding for purchase incentives and charging equipment. This legislation was heard in the Senate State and Local Government Committee in March and will then move on to the Senate Environment and Transportation Committees. There is

a lot left to be hashed out among various stakeholders as this moves through the process.

Another piece of legislation, SF 1296, is more specifically tailored to increase the number of EVs in use over the coming years. The draft legislation would require state fleets to give preference to EVs, provide rebates for individuals who purchase EVs and provide grants for auto dealers to become EV certified.

Finally, HF 1346 seeks to access federal funds for charging stations. The Infrastructure Investment and Jobs Act (IIJA) includes the National Electric Vehicle Infrastructure (NEVI) program for expedited charging along interstate highways. It requires state matching funds, which HF 1346 would provide.

While the Governor’s proposed budget included funding for job training programs in the “green space,” it was not specific to EV repair, and the provision has not shown up in proposed legislation yet. To date, there has not been significant workforce legislation proposed to bolster the EV repair industry. This could be an issue that is prime for broader coalition advocacy both during this session and the coming legislative session.

Much work remains between now and the constitutionally mandated adjournment date of May 22. We will continue to track and influence priority legislation and keep members updated as the session works towards an end.

AASP-MN News April 2023 | 5 LEGISLATIVE UPDATE

AASP-MN Announces 2023 - 2024 Board of Directors

April marks the beginning of service for the 2023 – 2024 AASP-MN Board of Directors. The Alliance is pleased to welcome new board members Shannon Christian (Shannon’s Auto Body; Brainerd), Tim Kruse (TGK Automotive; Hugo) and Randy Notto (Lenfer Automotive & Transmission; Lino Lakes). They join other members of the Board, which include:

• Mike McLynn (Automotive Electric; Grand Rapids) –President

• Jesse Jacobson (Heppner’s Auto Body; Woodbury) – Immediate Past President

• Aaron Swanson (LaMettry’s Collision; Eden Prairie) –Secretary/Treasurer

• Paul Yager (Enterprise Rent-ACar; Eagan) – Associate Division Director

• Travis Doyle (Arrowhead Auto Body; Duluth) – Collision Division Director

• Dan Gleason (Pro-Tech Auto & Truck Repair; Corcoran)Mechanical Division Director

AASP-MN also extends a sincere thank you to this year’s outgoing board members:

• Tom Archambault (BLVD Autoworks; St. Anthony)

• Jeremy Nordgren (Nordgren Automotive; Medina)

• Lee Schlosser (Autoworks Collision Center; Rockford)

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

Estimating for a Safe & Proper Repair Seminar Highlights

Over 55 collision repair professionals attended “Estimating for a Safe & Proper Repair” Wednesday, March 8 at Auto Value Headquarters in St. Cloud. The allday seminar, presented by Jeff Oldenettel of Collision Advice, was co-sponsored by Axalta Coating Systems.

The course covered a proven approach to writing safe and proper repair plans, including conducting OE safety, steering column and seat belt inspections and more. Attendees learned how to research, identify and document damage in a way that will assist in discussions with third-party payers, as well as reduce liability. Proven techniques for justifying repair operations, part type selection and refinish operations were also discussed.

Minnesota Careers in Auto Repair & Service (MNCARS)

MNCARS is a non-profit 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.

Recent MNCAR Activities:

March 17 Central High School Career Fair: 1,600 students exposed to a wide range of careers

March 22 DCTC Automotive Career Fair: All students enrolled in the current program met with employers actively hiring

March 24 Mahtomedi Middle School Career Day: 3 presentations of 25 minutes each given to students about automotive careers

March 28 Saint Paul College Automotive Career Fair: All students enrolled in the current program met with employers actively hiring April 1 SkillsMN Autobody Contest (St. Cloud Community & Technical College)

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!

28th Annual AASP-MN Golf Outing Announced

The 28th Annual AASP-MN Golf Outing will be held Wednesday, June 21 at Majestic Oaks Golf Club in Ham Lake. All collision repair and auto service industry professionals and suppliers are invited to attend the event to enjoy a day of golfing and socializing with industry peers.

Play will begin at 12:30pm followed by dinner and an 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 7 or visit the association’s website aaspmn.org. You may also email the Alliance office at aasp@ aaspmn.org or call (612) 623-1110.

Thank you 2023 Year-Long Sponsors!

Platinum Sponsors

LKQ Minnesota

Lube-Tech

Gold Sponsors

3M

AASP National

Auto Value / Benco

CBIZ

FinishMaster

NCS / Single Source

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

AASP-MN News 6 | April 2023
LOCAL NEWS

Fees Include:

• 18 Hole Green Fees

• Golf Cart

• Contests & Prizes

• Social Hour & Dinner

Golf Outing

Wednesday, June 21, 2023

12:30 p.m. Shotgun Start

Majestic Oaks Golf Club 701 Bunker Lake Blvd. Ham Lake, MN 55304 $100 per golfer/$400 per team

3rd Player: Company:

4th Player: Company:

Payment Options:

_____Check enclosed. Payable to AASP-MN

_____Credit card (Visa, MasterCard, Discover & American Express accepted)

Note: We add a 3% surcharge to all credit card payments. This surcharge is not greater than our total cost of accepting credit cards. Surcharge does not apply to debit cards.

Credit card #___________________________________________Expires_________

AASP-MN News April 2023 | 7
AASP-MN
28th Annual
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -AASP-MN 28th Annual Golf Outing Registration June 21, 2023 – Majestic Oaks Golf Club
Address: City: Zip: Phone: Fax: Email:
Name: Company:
1st Player: Company: 2nd Player: Company:
CVC
Return by June 10 to: AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 Phone (612) 623-1110 - email: aasp@aaspmn.org Four Person Scramble Check-in 11:30 am12:00 pm Registration Deadline June 10!
#_________ Billing address:

Millennials Put Amazon in Driver’s Seat

Amazon holds a special place among Millennials, who rank it as the most relevant product/service brand in the U.S. In the minds of Millennials, Amazon overshadows tech giants like Apple and Google and product/service companies the likes of Sony, Starbucks and Nike, to name only a few.

Amazon’s top ranking among Millennials has significant implications for its future sales of automotive parts and repairs. Amazon has shown a growing interest in the aftermarket as a foothold for gaining access to the massive, trillion-dollar mobility market of the future.

Millennials are America’s Economic Future

Millennials (Americans born between 1981 and 2000) range in age from 23 to 42 years and are the largest U.S. generation.

For the next 20 years, Millennials will be the key generation driving the U.S. economy as Baby Boomers fade from the scene, and Generation Z consumers gain economic traction.

Millennials Rate Amazon the Most Relevant Brand

Amazon is first in Millennials’ ranking of relevant product/service brands. Brand relevance is determined by its benefits to consumers and how it addresses their key needs, wants and desires.

Relevance is the most significant factor in determining a brand’s economic success and impact.

Millennials have grown up with Amazon, and it has become their go-to buying source for all kinds of goods and, increasingly, services. As digital natives, Millennials have not known the internet without Amazon.

From Books to Everything

Amazon began on July 5, 1994, as an online marketplace for books, run by Jeff Bezos from his garage in Bellevue, Washington. Amazon has rolled out its offerings to encompass virtually all types of products, transforming from the internet bookstore to the internet everything store.

Amazon is expanding into services, with o2o (online to offline) transactions growing in volume and

the range of services it offers, including auto repair.

Amazon’s Unique Appeal to Millennials

In addition to its product array and quick delivery (which appeal to all consumers), Amazon has two features aimed directly at key Millennial values, which have helped it earn the status of top relevance among Millennials.

Product Reviews

One characteristic of Amazon that makes it so popular with Millennials is its product review feature, which allows users to rate products that they have purchased. This taps into a primary Millennial value: peer-to-peer opinion sharing.

Millennials strongly rely on peer-to-peer opinions when they choose among products and services. This information provided by Amazon plays into Millennials’ core value of sharing.

This sets Amazon apart from many other buying sources (mainly brick-and-mortar businesses) and gives Millennials the feeling of an extra value from Amazon, which makes their product selection much easier and more likely to be “on target.”

Brand and Price Alternatives

Another of Amazon’s features that make it the first choice of many Millennials is its vast variety of options within product categories. Amazon offers brand and pricing alternatives to buyers, which most brick-andmortar stores cannot match.

This is important to Millennials who often prefer value (competitive pricing) over merchandise branding. This has led to the accusation by some analysts that Millennials lack brand loyalty.

Aftermarket Implications

Amazon’s appeal to Millennials will have significant consequences as Amazon increasingly targets auto parts (retail and wholesale) and expands its offerings of automotive repairs.

Millennials, who already play a critical role in DIY parts buying, are a growing force in the Do-It-For-Me (DIFM) market partially due to the increasing number

AASP-MN News 8 | April 2023 NATIONAL NEWS
www.langmarketing.com

of Millennial technicians and repair shop owners.

Lang Marketing’s recent study of repair shops’ internet buying practices has documented significant differences in the internet buying practices of Millennial technicians and shop owners compared to the behavior of their older counterparts.

Aside from this wholesale aspect of the DIFM market, Millennials are changing the role of the internet in the retail purchase of automotive repairs.

Delivery Time Not a Barrier

The rapid delivery of auto parts by brick-andmortar stores to repair outlets is usually regarded as a requirement of the DIFM aftermarket and a barrier that will keep internet buying from expanding beyond only a small collection of aftermarket repairs.

However, o2o (online to offline) transactions can reduce the need for rapid parts delivery, with consumers scheduling auto repairs through Amazon (online) at approved outlets and allowing lead time for the necessary parts to reach the outlet from Amazon before the scheduled time of repair (offline).

This o2o strategy shifts the focus of consumers’ auto repair buying decisions from local repair outlets to large platforms, such as Amazon.

Amazon in the Driver’s Seat

With its unprecedented position of reliance and trust among Millennials, Amazon is ready to expand its already substantial auto parts DIY sales base and increase its offering of auto repairs (using an o2o

model).

Its growing aftermarket foothold has positioned Amazon to gain access to the massive, trillion-dollar mobility market of the future.

Six Major Takeaways

• Ranging in age from 23 to 42 years, Millennials will be the dominant generation in the U.S. economy for the next 20 years.

• Millennials believe that Amazon is the most relevant brand, standing above tech giants like Apple and Google and consumer brands like Sony, Starbucks and Nike, to name only a few.

• Two key features of Amazon are directed at core Millennial values: peer-to-peer ratings of products and services, and a wide selection of brands and prices.

• o2o (online to offline) transactions can work around the need for quick parts delivery to installers by enabling consumers to schedule repairs several days in advance (online), allowing Amazon to ship the necessary parts to the repair outlet (offline).

• This o2o strategy shifts the focus of consumers’ auto repair buying decisions from local repair outlets to large platforms such as Amazon.

• Amazon’s interest in the automotive aftermarket is based mainly on the access that it can provide to the much larger, trillion-dollar mobility market of the future.

AASP-MN News April 2023 | 9

CCC/MOTOR: Door Weatherstrip Clips – DEG Inquiry 23156 states, “The estimated work time applied to the door weatherstrip is to R&I/R&R the door weatherstrip with no considerations for damage to the door weatherstrip or damaged clip(s). If the clip(s) are damaged during repairs, an on-the-spot evaluation would need to be performed to determine an appropriate estimated work time to replace the clip(s).”

Please note: MOTOR has no way to determine if the door weatherstrip or how many clip(s) are damaged during repairs.

Mitchell: VIN Scanning Using Device Camera – Mitchell Cloud Estimating (MCE) users can quickly enter VIN information by taking a picture of the VIN while at the vehicle. This feature can be accessed while logged into MCE using a portable device with built-in camera.

CCC/MOTOR: Masking for Seam Sealer – DEG Inquiry 23332 states, “The repair technician’s application time for “seam sealer/caulk” may vary depending on product, dispensing/application method and skilled technician level.

According to the “Guide To Estimating: Labor Time Premise,” “Labor Time Does Not Include: Material Costs.”

Please note: Masking off the panel to apply a sprayable seam sealer, would not be included, an on-the-spot evaluation to determine an appropriate time is recommended.

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

AASP-MN News 10 | April 2023 ESTIMATING TIPS Visit degweb.org to submit a Database Inquiry and contribute to database accuracy!
Phone 952-933-3666 128 Jackson Ave N Hopkins, MN 55343 SALES SERVICE INSTALLATION INSPECTION FINANCING Toll Free 800-328-2181 Fax 952-933-0265 BencoEquipment.com Since 1972 THE LARGEST ROTARY LIFT AND WHEEL SERVICE DEALER IN THE MIDWEST! Tire Equipment | Hoists & Lifts | Compressors
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 News April 2023 | 11 At LKQ, a passion for “better” is what drives us. For LKQ, the world’s “good enough” isn’t good enough. We believe better is the reward for those who keep striving. We bring this passion for better to our work every day. Today, LKQ is the auto industry’s largest recycler of vehicles. Our salvage vehicle operations recycle more than 90% of the materials from end-of-life vehicles that would otherwise end up in a landfill. Call Us : 866-LKQ-CORP Visit Us Online : www.LKQCorp.com New Aftermarket | Paint Products | HD Truck Parts Remanufactured Engines & Transmissions | Recycled OE
AASP-MN News 12 | April 2023
AASP-MN News April 2023 | 13

Winter is ENDING:

Inflation. Increasing interest rates. Recession. These scary concepts likely leave small business owners cold with dread about the future, especially during the darkest part of the year. But is economic uncertainty as detrimental to automotive and collision repair shops as to other industries?

In short, no! Although no industry is truly recession-proof, some are more resistant to economic changes than others, and fortunately, this appears to be one of them. Industry leaders explain why shops should be looking on the bright side.

“When interest rates rise and there are fears of a recession, I recognize how easy it is to become overwhelmed with fears, but I’m not afraid,” insists Mike Anderson (Collision Advice). “While it’s obviously bad in some ways, I believe it’s also good news for our industry because there are some pros. For example, a higher interest rate makes it harder to borrow money which means fewer people can open new shops. It increases the price of admission. While we need more good shop operators, creating a barrier of entry prevents just anyone from opening a shop and offers some protection to the people who are currently in the industry and actively investing in their businesses.”

Maylan Newton (Educational Seminars Institute) agrees that “the transportation industry has survived very well during every past recession. Even during the height of the pandemic, repair shops remained

busy because people wanted to isolate themselves in their own mode of transportation. In the U.S., we are very transportation dependent, and few places have a reasonably clean, rapid public transit system. The average vehicle age and miles driven has increased, and although the industry is changing, I don’t think it’s changing to the point that it won’t be needed. Sure, we will need to modify the way we do things and learn new technology, but there are plenty of cars on the highway that need our attention.”

Prior to COVID, shops complained when they experienced a lull of a couple weeks, but these days, shops have been rampantly busy. Despite the increase in more people working remotely, everyone still relies on their vehicles to take the kids to soccer or dance practice, to travel to appointments and to attend social gatherings.

“Our cars are integral to how we live our lifestyles. That plays a lot into the consistent need for repairs, and as the economy tightens, more people opt to repair their cars instead of buying new,” points out Rachel James (Torque Financial Group). “Looking back at the economic changes the industry has experienced over the years, the only real constant is change. The economy isn’t stagnant; there’s economic uncertainty every day. But shops are used to changing and adapting. If you get a run in your paint, the painter knows there are tools to fix it. Having a solid financial

AASP-MN News 14 | April 2023 COVER STORY

A Bright Economy on the Horizon for Shops

plan is a tool that every business needs, no matter the current economic situation.”

Another benefit of economic uncertainty for automotive and collision repair shops could be its impact on the workforce, and James suggests there could be an opportunity for shops to address their current workforce shortage.

“With companies announcing closures of locations all across the country, the employment structure is weakening which means qualified professionals will be looking for new opportunities. This offers our industry a chance to attract customer service representatives and other skilled talent to automotive and collision repair shops.”

While economic downturns are typically viewed negatively, they also offer some benefits, according to Rick White (180BIZ). “This is a chance to realign and correct the economy when prices spiral out of control. It also offers a chance to ‘discover who’s swimming naked,’ as Warren Buffet said. A lot of activity hides a lot of sins in sales. Poor performance at the front counter can still be profitable if I have enough people coming in, but when the tide goes out, those shortcuts are glaringly evident without the activity to hide them. Slowing down gives us a chance to step back, return to the basics and correct our actions.”

The most detrimental mistake that many business owners make is giving into pessimism and accepting

that doom-and-gloom mentality.

“If it’s all doom and gloom, why are so many consolidators buying up shops?” Newton asks.

“Venture capitalists are making huge investments in MSOs and software companies, and they wouldn’t do that if they didn’t believe there was a return on investment. We’re a vital industry, so we should be going to work excited, with a good attitude. Be optimistic about the future! Yes, we’ll need to learn about electric vehicles and how to work on alternatively fueled cars, but we’ve been learning for over 100 years. We started as blacksmiths, and now we’re working on complex machines. Even when vehicles advance to the Jetson-age of flying saucers, they’ll still need us to fix them. It’s up to you if you’re going to be prepared for that future or if you’re going to give up now.”

“Shop owners need to keep their heads and maintain a positive mindset because how you show up in business has everything to do with how the business will go,” White agrees. “You may need to work harder, but recognizing there’s still opportunities to take advantage of is better than believing it’s going to get slow. Thoughts dictate actions, so when you accept that negative change is coming, you stop working as hard; your negative thoughts allow you to spiral and reinforce that negativity. But positive thinking helps

AASP-MN News April 2023 | 15
21
By Chasidy Rae Sisk continued on pg.

Ever Clean House?

Ever clean house?

How did you interpret that sentence? Was it a question about whether your residence is clean? Or was it a question about whether you’ve gone through and gotten rid of all the miscellaneous no-longerneeded stuff that accumulates? We don’t really care about the answer to the first question. If the answer to the second is never, or not recently, it’s time to talk about housekeeping.

You’ve seen pictures of garbage houses or hoarder houses. Your shop isn’t anything like those. But unless you’re particularly diligent, stuff piles up. You try out a new product and no one likes it, so the barelyused container stays on a back shelf. You purchase a specialty piece of equipment but use it only once. It takes up residence in a back corner. If you have unlimited space, you may never need that back corner. But most shops do not have unlimited space. And too often, that stuff isn’t in the back corner but is left where it was last used, in the middle of the shop.

Who cares if you’re tidy and uncluttered? Your local fire inspector cares. The fire code says that “storage of materials in buildings shall be orderly.” OSHA cares. “All places of employment shall be kept clean to the extent that the nature of the work allows.” And “all places of employment…are [to be] kept in a clean, orderly and sanitary condition.” Why do they

care? Because messy shops increase the fire hazard. Messy shops increase the hazards from slips and falls. Messy shops are more dangerous.

Can employees get out quickly in an emergency? Can they get to fire extinguishers or eyewashes? People tend to forget about things they don’t use often – such as emergency equipment. One cramped shop had a large tool chest, a stepstool, a box, a creeper and a pail all stored in front of an emergency exit at the back of the shop. If a fire broke out in the front, employees would have no way of escaping quickly. Ever hear of disastrous fires where many people died because they couldn’t reach an exit in time? In Boston in 1942, nearly 500 people died in the Cocoanut Grove Nightclub fire – many couldn’t get out because some exit doors were locked.

Good housekeeping is more than just keeping emergency equipment clear. The risk of a fire increases with clutter. You already have a lot of flammable and combustible material in your shop. You get parts and supplies in cardboard boxes. Your employees use rags to wipe up oil spills or wipe down cars. Does anyone grind or weld? Those sparks can travel 30 feet. A spark landing in a pile of rags could smolder for hours. So, tidy up, to reduce the fire risk.

As you walk through your shop, what do you have to step over? See that cord across the aisle?

COMPLETE HEALTH, ENVIRONMENTAL AND SAFETY SERVICES
(C.H.E.S.S.)
AASP-MN News 16 | April 2023

What about the air hose? Those are tripping hazards. And if you stumble over the extension cord, you might pull it out of the wall, damaging the plug or pulling off its grounding pin. We doubt that you can eliminate those cords and hoses entirely. But is there a better way to handle them? Cord reels and drop outlets might keep them out of the way. Requiring employees to put them away, unplugging extension cords at the end of each day, will also help keep them tidy.

Don’t tolerate liquid spills. Cars have lots of liquids in them –gasoline, oil, coolant, washer fluid. Two of those are very flammable. The other two can burn. All are environmental pollutants. If you have employees who can’t pour into drums, get bigger funnels. Never let drums be filled to the very top, so they don’t overflow.

What's Wrong With This Picture?

And you need to leave room for expansion (that’s why your 55-gallon drum of thinner only holds 53 gallons).

Designate a spot for things to live. Mark where your welders will be kept. Store ladders in the same spot each day. If you’re tight on space, having designated locations for everything (even for trash containers!) makes it easier to find everything. Figure out what is used often; if equipment is rarely used, store it out of the way. If you have a designated location for it, it can be found when it is needed.

Put things away. When you’re done with the spot welder, put it back in its place. Use a broom? Hang it back up. This is easier once things have a place to go. Don’t hoard. Go through the shop at least once a year. Ask if anyone’s used this equipment or that product. If the answer

is no, get rid of it (following environmental regulations, of course). We all have those roundto-it projects – that cord you plan to fix, the equipment you want to weld back together. But if you haven’t been able to get to it in the past year, what makes you think you’ll get to it in the coming year?

If you’ve taken any management courses or read management books, you probably have heard of the 5S Methodology: Sort, Set (in order), Shine, Standardize and Sustain. It really is just good housekeeping. Get rid of what you don’t need. Have a place for things. Keep your shop tidy. Repeat. It’s an ongoing effort. Management gurus tout it because it improves productivity. It makes it easier for your employees to do their jobs. But it also makes your workplace safer.

AASP-MN News April 2023 | 17
The cord is across the exit path and items are also narrowing it.

Benefits of Business Interuption Insurance

Continuity is critical in business, and there are few things more important than continuous revenue and cash flow, particularly for small to medium-sized organizations. In fact, just one brief business interruption can be incredibly costly for an organization, often leading to serious reputational damages or long-term closures.

That’s where business interruption insurance can help. This form of coverage provides protection against a variety of common interruptions, including natural disasters, equipment damage and vandalism. The following are some other major benefits of business interruption insurance:

Revenue—In the event of a disruption, business interruption insurance provides coverage for income your business would have earned during a closure period if it had been operating normally.

Rent or lease payments—Even if your premises are unusable following a disaster or other event, many leases still require that you make payments. Business interruption insurance allows you to continue making rent or lease payments, even while your business is not operating.

Relocation—In the event that your primary location is unusable following a disaster or other event, you will likely have to relocate in order to remain open and continue generating revenue. Business interruption insurance can cover the expenses of moving your business to a temporary location and may include both moving and rent costs.

Employee wages—If you are unable to operate, it is likely you will not be able to continue paying employees. Business interruption insurance can help you avoid losing staff while you’re closed by ensuring that you make payroll. This is especially important, as finding new employees is often more expensive than keeping them.

Loan payments—If you have an outstanding loan, you will need to continue to make payments even if your business isn’t fully operational. Business interruption insurance will ensure you never miss a payment until you are fully operational again.

Learn More About Business Interruption 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 at (763) 549-2247 or bschmid@cbiz.com

AASP-MN News 18 | April 2023 INSURANCE I.Q.

Two Great Companies. One Great Program.

AASP-MN News April 2023 | 19
® ®
AASP-MN News 20 | April 2023

continued from pg. 15

you work harder and make good things happen.

“When things go well, we unconsciously expect them to stay that way, and when they go sideways, we fear they’ll stay that way,” he continues. “But neither is true. In reality, there are seasons to business: We plant and grow in spring, nurture in summer, harvest in the fall and then recharge and reset every winter. And if you’re prepared for those cycles, it can be pretty amazing. Jim Rohn has a great lesson on thinking like an ant…never quit, focus on gathering all you can, think winter all summer and think summer all winter. Your economy lives in the six inches between your ears, and when you’re approaching the unknown, recognizing that you control your mindset and your mindset controls your outcomes can make all the difference in the world.”

So, what are some of the opportunities that exist, and how can shops take advantage of them? How can advancing technology work to shops’ benefit, and how can shops navigate increasing expenses? Stay tuned to AASP-MN News as these leading industry experts share their thoughts on the silver lining in the economic cloud in an upcoming issue.

AASP-MN News April 2023 | 21 30659 Pearl Drive Unit #3 • St. Joseph, MN 56374 CALL US TODAY!! (320) 363-4107 Mike: (320) 267-2102 Randy: (320) 428-6200 www.straight-square.com For Fast & Easy Pulling and Measuring in Your Shop... MAKE IT STRAIGHT & SQUARE!
COVER STORY
ARE YOU INTERESTED IN: Supporting future technicians? Bettering yourself through ongoing education? Increasing efforts to improve the automotive repair industry? Taking advantage of amazing benefits, many at a substantial discount? Call (612) 623-1110 or email aasp@aaspmn.org If so...JOIN US!

CASH IN ON YOUR MEMBERSHIP BENEFITS!

The Partner You Need to Do Your Image Proud!

In the automotive service and collision repair industry, trust is earned. You work hard to earn it from customers every day. When your business features branded work uniforms and floor mats, and clean restrooms and bays, customers trust that you’re doing things right. This helps you stand out from the shops down the street and keeps customers coming back.

Aramark offers AASP-MN members a towel, rug and uniform rental program with:

• Discounted pricing

• 10 percent annual rebate

• Free installation

• Free emblems

• No deposits

• And, no set-up charge

With a uniform and facility care product program from Aramark you’ll save:

• Time – Aramark will manage the details, so you don’t have to. A customer portal with online billing and payment adds convenience and ease.

• Space – Your Aramark representative will stock the exact quantities your business needs, leaving you with the extra shelf space.

• Money – Weekly inventory monitoring means you’ll only spend on what you need. And, you will receive

PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE

CBIZ

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

an annual 10 percent rebate for your purchases with Aramark. In February, $79,500 was distributed to 183 members for their participation in 2022. That’s an average rebate of $434.80!

Local support keeps this program running smoothly. Aramark knows that service is more than just doing the job. Excellent service is the result of going above and beyond—and earning your trust. That’s why you’ll see the same familiar face at every delivery to your shop. Service is more than a 1-800 number. Service is showing up every day, no matter what.

For more information, visit aramark.com or call:

AASP-MN MEMBER BENEFIT PROGRAMS

WEBSITE AND INTERNET MARKETING SOLUTIONS

Autoshop Solutions

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

BUSINESS FORMS/CALENDARS

AASP-MN

Contact: Jodi Pillsbury

612-623-1110 / jodi@aaspmn.org

CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums.

EMPLOYEE BENEFITS

Business Planning Professionals

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

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

EMPLOYEE VOLUNTARY BENEFITS

Colonial Life

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

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

UNIFORM & LINEN SUPPLIES

Aramark

Contact: Rick Krenz

612-616-5290 / krenz-richard@aramark.com

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

CREDIT CARD PROCESSING

Association BankCard Services

Contact: Mac Hardin

952-933-2026 / mach@retailfinancialservices.biz

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

LEGAL CONSULTATION

Fryberger, Buchanan, Smith & Frederick 800-496-6789

Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.

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

REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS

CARS COOPERATIVE

Contact: Stephenie Sheppard 405-547-4077 / membersupport@cars.coop Members receive discounts on a variety of products and services they use every day! From discounts on paint and rental cars to office supplies and phone services. Over 50 programs available!

INFORMATION PROVIDERS

Mitchell 1

Contact: Mitchell 1 Representative 888-724-6742 ext. 6986 Mitchell 1 offers AASP members a $10 per month discount on any eligible Mitchell 1 subscription.

Mitchell International

Contact: Mitchell International Representative 800-238-9111 AASP members receive $350 off Mitchell's MD-500 allin-one solution for scanning, calibration, estimating, and blueprinting.

TECHNICAL INFORMATION HOTLINE

IDENTIFIX

800-745-9649

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

CHECK GUARANTEE SERVICES

Certegy Check Services

877-520-2987

Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

AUTO EMPLOYEE ASSESSMENT

Assessment Associates International

Contact: Nate Page 952-854-6551 / nate@aai-assessment.com

Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment.

Discounted rates on printed business forms and calendars.

PAYROLL PROCESSING

CBIZ Payroll

Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com

Members receive 20% discount off standard payroll products and services (excluding 401k).

SAFETY COMPLIANCE

Complete, Health, Environmental & Safety Services

Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com

AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/ Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance.

LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING

AUTOMOTIVE SEMINARS

Contact: Tim Houghtaling

920-866-9813 / tim@automotiveseminars.com

Discounted pricing to AASP-MN members on all liveonline events, as well as on-demand training videos.

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

BUSINESS COACHING

180BIZ

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

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

SHOP SOFTWARE

Condition Now

888-868-5440 / conditionnow.com/body-shop

A platform that allows shops to supplement the accident or damage information reported on Carfax and Autocheck vehicle history reports. Every AASP member receives a discounted inspection rate, allowing them to generate additional revenue from their retail and dealer customers.

AASP-MN News 22 | April 2023
Minneapolis (612) 331-1600 Bemidji (218) 751-5150 Mankato (507) 345-1039 Hibbing (218) 263-3611 St. Cloud (320) 251-2525 Fargo (701) 232-7484
AASP-MN News April 2023 | 23 Why Join WIN? WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market. • Local/Regional Networking Events • Annual Education Conference • Educational Webinars • Mentoring Opportunities womensindustrynetwork.com • Scholarship Program • School Outreach Program • Most Influential Women (MIW) Award THOMAS GRECO PUBLISHING Contact us to learn more! 973-667-6922 info@grecopublishing.com We do all of the heavy lifting so you can focus on what’s most important: GETTING YOUR MESSAGE OUT THERE. @grecopublishing Greco Publishing has successfully served the automotive repair industry for over 30 years in print, online and as an association liaison. Our team handles all pre-press production in-house, from ad design to editorial layout. Greco Publishing also provides a variety of services to cover our clients needs and facilitate their day-to-day business.
AASP-MN News 24 | April 2023 Choose a Replacement that Performs Better than OE. Inventory, Compatibility, Warranty and Service Automatic Transmissions Over 2,500 vehicle-specified units in stock Up to 3-Year/100,000 Mile Warranty Manual Transmissions 1-Year/Unlimited Mile Warranty Driveshafts Replacement, Custom Driveline We offer a complete line of all driveline parts. - Uncompromised Quality and Service4WD Transfer Cases 2-Year/Unlimited Mile Warranty PTUs (Power Transfer Unit) 2-Year/Unlimited Mile Warranty Differentials 2-Year/Unlimited Mile Warranty Maple Grove • (763) 425-7474 “From The Flywheel To The Drive Wheel” We Have What You Need - Delivered To You

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