May 2021
THE EV REVOLUTION:
April 2021
EXPLORING THE NEXT WAVE OF SERVICE & REPAIR PART ONE
PLUS: • AASP-MN’s 2021 Annual Meeting & Leadership Conference • Meet the New AASP-MN Board Members
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CONTENTS Vol. 30 No. 5
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. ©2021 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
MECHANICAL DIVISION DIRECTOR'S MESSAGE.............................4 See You at the Leadership Conference! by Jeremy Nordgren, AASP-MN Mechanical Division Director LEGISLATIVE UPDATE.....................................................................6 Session Moves into Final Weeks by Kevin Walli, AASP-MN Lobbyist
2021 - 2022
LOCAL NEWS..................................................................................8
PRESIDENT Tom Archambault
NATIONAL NEWS............................................................................9
IMMEDIATE PAST PRESIDENT Matt Feehan
AASP-MN ANNUAL MEETING AND LEADERSHIP CONFERENCE AGENDA & REGISTRATION.........................................................10-11
SECRETARY-TREASURER Jesse Jacobson
26th ANNUAL AASP-MN GOLF OUTING REGISTRATION.................14
COLLISION DIVISION DIRECTOR Lee Schlosser MECHANICAL DIVISION DIRECTOR Jeremy Nordgren ASSOCIATE DIVISION DIRECTOR Loren Feldkamp COLLISION SEAT Travis Doyle MECHANICAL SEATS Mike McLynn Tony Newman
STAFF
EXECUTIVE DIRECTOR Judell Anderson, CAE OFFICE ADMINISTRATOR 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 | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com www.grecopublishing.com
INSURANCE I.Q. ..............................................................................16 D.E.G. ESTIMATING TIPS .................................................................18 COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) .....................................................................................19 Who's Afraid? by Janet L. Keyes, CIH and Carol A. Keyes, CSP COVER STORY.................................................................................20 The EV Revolution: Exploring the Next Wave of Service and Repair - Part One by Joel Gausten CASH IN ON YOUR MEMBER BENEFITS! .........................................22 Employee Voluntary Benefits - Colonial Life AASP-MN MEMBER BENEFITS .............................................................22 UPCOMING EVENTS May 20
June 16
September 28, 29, 30
Annual Meeting & Leadership Conference
26th Annual Golf Outing
Race for Automotive Education
Nicollet Island Pavilion Minneapolis
Majestic Oaks Golf Club Ham Lake
ProKart Indoor Racing Burnsville
ADVERTISERS’ INDEX A-Con Recycling..................................................8 Aramark..................................................................9 Dentsmart..............................................................21 Inver Grove Honda/Inver Grove Toyota......18 Jack McClard.........................................................7 Keystone................................................................21 Maplewood Toyota.............................................15 Mopar Group ........................................................15 Morrie’s ..................................................................11
AASP-MN News
MPA..........................................................................IBC Proven Force.......................................................OBC Reliable Automotive Equipment...................12-13 Rosedale Chevrolet.............................................6 Sherwin Williams..................................................IFC Spanesi....................................................................5 Straight & Square.................................................17 Toyota Group.......................................................7
May 2021 | 3
MECHANICAL DIVISION DIRECTOR'S MESSAGE
See You at the Leadership Conference! by Jeremy Nordgren AASP-MN Mechanical Division Director
It’s time for the 2021 Leadership Conference! It’s hard to believe that it’s been two years since we got together at our last conference. I’ve been looking
4 | May 2021
forward to this year more than ever. If you haven’t ever been to an AASP-MN conference or are unsure about attending, I can tell you that
AASP-MN News
attending will be a decision that you will not regret. I was hesitant to go my first year – taking a whole day off to leave the shop when it was busy. Plus, I felt like I wouldn’t know anyone there and wasn’t really sure what I would get out of it. As soon as I got there, I met several outgoing individuals and the “shop talk” got started right away. I could tell that I had made the right choice. The day was packed with a variety of great speakers and small group breakout sessions. I wasn’t sure what to expect of the speakers and I quickly found out that there was a lot of time and effort put into selecting the right speakers with the right topics that we could learn and benefit from. One spoke about employment, recruiting, hiring and retaining. I learned a lot from the session and got a chance to speak to the presenter and ask him a few questions afterwards. The small group breakout session had a nice variety of topics that you could choose from. Tony Newman of Dale Feste Automotive did a great job leading a discussion on computer programming, where I found good feedback on a device that I had been looking into buying for the shop. I am really looking forward to Sam Silverstein speaking this year. His topic of accountability in your life and organization is a perfect example of how the conference is not just a meeting about the normal day-to-day work in the shop – it covers a lot more. So much of what we learn will not only apply to the shop but also to our lives at home. Above all other reasons to attend this year’s conference, is the relationships that you will make with other individuals in our industry. I look forward to seeing you all on May 20!
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May 2021 | 5
LEGISLATIVE UPDATE
Session Moves into Final Weeks by Kevin Walli, AASP-MN Lobbyist
As we close in on the final weeks of the 2021 legislative session, COVID-19 safety measures have made interactions with legislators extremely challenging. There has been no opportunity to speak directly to legislators or their staff. Everything is done by phone and Zoom. There are three areas of concern on which we are focusing most of our time and attention. First, in the area of taxes, we are watching to see how the House and Senate omnibus tax bills treat tax liability for businesses that received federal relief to respond to the pandemic. With the state revenue forecast having improved dramatically, it appears that the Legislature will protect businesses and individuals from tax liability associated with federal payments. We will report on the outcome of that measure at the close of session. An issue which emerged over the last several months has gained considerable attention at the Legislature. The theft and resale of catalytic converters has become an epidemic of its own. Legislators and law enforcement officials have been seeking ways to blunt this practice. Our objective has been to scrutinize proposals to ensure that repair shops are not unreasonably burdened in handling catalytic converters. Be aware that the Legislature is working on this area and we are trying to keep the response reasonable. We will report more fully on what emerges from the legislative process as the session draws to a close.
Finally, proposals to change the Salvage Title statute continue to be a concern for AASP-MN. An amendment to the Senate transportation finance bill would remove the terms “late-model” and “high-value” from the Salvage Title statute. The result would be many more vehicles required to secure a Salvage Title. Consumers would likely see a devaluation of their vehicles and fewer vehicles would likely be repaired. The impetus for this legislation was a false argument that Minnesota is a dumping ground for inappropriately titled vehicles from other states. The proposal pending in the Senate bill will do nothing to change the current processing of out-of-state titles in Minnesota. The state currently adopts the title restrictions that have been imposed on a vehicle in other states when they are retitled in Minnesota. That practice would continue in any case. The House has not advanced the provision and our efforts are focused on having them hold their ground so that there is a better opportunity for a broad discussion of the Salvage Title statute to ensure that any change is based on real issues that consumers face. Again, these issues will likely play out in the final weeks of session and we will provide a timely legislative report as soon as the session ends – hopefully on the constitutional adjournment date of May 17 – and not with a special session which drags on into the summer months.
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May 2021 | 7
LOCAL NEWS Meet the New AASP-MN Board Members Travis Doyle, Arrowhead Auto Body, Hermantown – Collision Seat I am the co-owner of Arrowhead Auto Body, a familyowned business in Hermantown. I have been working in the collision repair industry for eight years, after earning my bachelor’s degree in business management from the University of Minnesota, Duluth. I have served as president of Lake Superior College’s Auto Body program and I’m active in our local body shop business association. In addition, I participate in Axalta’s business councils. I have been on the AASP-MN Collision Advisory Committee for over two years and serve on the association’s Legacy Committee, as well. I look forward to working with other like-minded individuals to tackle issues in the collision repair industry. I am engaged to be married to my fiancé, Kassidy. I enjoy racing vintage stock cars, snowmobiling, snowboarding and working in and on my garage. In the summer, I like spending time with family at the cabin, four-wheeling and cruising on the pontoon. Mike McLynn, Automotive Electric, Grand Rapids – Mechanical Seat I am the owner of Automotive Electric in Grand Rapids. I began working there after graduating from Hibbing Community College and purchased the business in 2014.
I spend most of my time in the shop working on vehicles and I really enjoy the complex and difficult diagnostic work. I have been a member of AASPMN since 1999 and have served on the Mechanical Advisory Committee since 2017. I am also active on the association’s Legacy Committee. Seeing the value in the Alliance, I am excited to be a part of its Board of Directors. I am married to my high school sweetheart, have three children and way too many pets to count. In my free time, I enjoy anything and everything aviation related. Travis and Mike join other members of the Board, which include: • Tom Archambault, BLVD Autoworks, St. Anthony – President • Matthew Feehan, Fix Auto, Brooklyn Park – Immediate Past President • Jesse Jacobson, Heppner’s Auto Body, Woodbury – Secretary/ Treasurer • Loren Feldkamp, Lube-Tech & Partners, St. Paul – Associate Division Director • Lee Schlosser, Autoworks Collision Center, Rockford – Collision Division Director • Jeremy Nordgren, Nordgren Automotive, Medina – Mechanical Division Director • Tony Newman, Dale Feste Automotive – Mechanical Seat Join AASP-MN for the 26th Annual AASP-MN Golf Outing The 26th Annual AASP-MN Golf Outing is Wednesday, June 16 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
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industry peers. Play will begin at noon, followed by dinner (under a tent outdoors) 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 14 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 AASP-MN Sponsors! Platinum Sponsors Fix Auto LKQ Minnesota Lube Tech & Partners Gold Sponsors AASP National Auto Value Parts Stores/APH Axalta Coating Systems CBIZ FinishMaster Podium PPG Automotive Finishes United Fire Group Silver Sponsors aaa Auto Parts AmeriPride Services Colonial Life Enterprise Rent-a-Car O’Reilly Auto Parts Single Source Sherwin Williams Suburban Chevrolet Bronze Sponsors C.H.E.S.S. Twin Cities Auto Glass Leadership Conference Vendor Sponsors 1 Collision Network 3M Automotive Trades Division AutoZone CalPro ADAS Solutions Dentsmart PDR
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.
Take advantage of the resources in the MotorMouth toolbox at https://carcareers.org/motor-mouth/. Get out and get active in your local community promoting industry careers!
AASP-MN News
NATIONAL NEWS
www.langmarketing.com Tech Titans: New Automotive Big Five Five powerful tech companies intend to disrupt the car and light truck market, at both the OE and aftermarket levels: Amazon, Apple, Google, Microsoft and Tesla. The potential for these Big Five companies to significantly change the vehicle market stems from their long-term mobility goals and immense technical and financial resources. Changes in vehicle design, operation and use will be determined largely by software, alternative propulsion systems and connectivity. The Big Five are dominant players in these key areas of mobility evolution. Six Major Takeaways: • A new Big Five tech juggernaut is emerging in the mobility market. These financial titans have a combined market value topping $5 trillion, many times the combined value of all automakers worldwide. • Amazon has recently acquired several companies that provide it with leading-edge technology for the development of electric and autonomous vehicles. Amazon differs from the other members of the Big Five in its unique position as an investor in electric vehicle companies, a large user of electric vehicles and a major player in the development of electric and autonomous vehicles. • Google (Waymo) and Apple are focusing on driverless vehicle development, which will change the relationship between consumers and vehicles, remove the driver experience and change the social significance of vehicles to consumer status and self-expression. • Microsoft is positioning itself as the leader in AI assisted cloud-based data computation and storage for the immense amount of data that driver-assisted and driverless vehicles will generate. In this way, Microsoft can provide the resources for vehicle connectivity, which is a key requirement in the efficient and safe operation of driver-assisted and driverless vehicles. • Tesla, the leader in the development of electric vehicles, has programmed driverless features into many of its vehicles. Tesla is the leader in putting EVs on U.S. roads.
• The aftermarket impact of these vehicle changes on which the new high-tech Big Five are focused could influence the volume, nature and location of vehicle repair and maintenance. Vehicle Scrappage is Shaping the Aftermarket Vehicle scrappage (attrition) is the removal of vehicles from operation. There are many causes for vehicle scrappage: wear and tear, accidents, airbag deployment, damage from fire or water and other factors that render vehicles not worth the repair costs necessary to keep them on the road. Vehicle scrappage has a significant impact on important characteristics of the vehicles in operation (VIO) and, therefore, aftermarket product volume. Six Major Takeaways: • Although vehicle scrappage traditionally has moved in the same direction as new vehicle sales, vehicle scrappage remained low between 2015 and 2019, despite record-high car and light truck annual sales. • Low scrappage rates and the population growth of older vehicle age groups have helped to increase
AASP-MN News
the average age of light vehicles in the U.S. • The population of older vehicle age groups, particularly 15 years and higher, has been boosted by moderate scrappage rates. Older vehicles generally use more aftermarket products per mile travelled than new cars and light trucks. • Since older vehicle age groups contain higher shares of domestic nameplates than younger groups, low scrappage has enabled more domestic nameplates to stay on the road. • By keeping light trucks in operation longer, low scrappage rates are helping to increase aftermarket product volume, since light trucks in the U.S. average greater annual aftermarket product use per vehicle than cars. • Lang Marketing expects scrappage rates will remain low during 2021, continuing these aftermarketboosting trends in vehicle average age, the populations of older vehicle age groups, the mix of domestic and foreign nameplates and the population percentages of cars and light trucks.
May 2021 | 9
R TE S I ! G RE DAY TO
Thursday, May 20
Nicollet Island Pavilion | 40 Power Street | Minneapolis, MN 55401
AGENDA AT A GLANCE 11:00am
Registration Open
11:30am Pivot! Building Accountability Into Your Life & Organization, Lunch & Annual Meeting presented by Sam Silverstein, Sam Silverstein Enterprises 2:00pm
ADAS - Are You Ready? presented by Jason Bartanen, Collision Hub, & Alliance Member Experts
3:30pm
THRIVE! Turning Uncertainty to Your Competitive Advantage presented by Meridith Elliott Powell, MotionFirst
4:30 – 6:00pm On-Demand Virtual
Vendor Showcase & Social Hour Know Your Numbers: Marketing KPIs presented by Kim Walker, Shop Marketing Pros
On-Demand Virtual
Prove It! File Documentation for Profit presented by Kristen Felder, Collision Hub
On-Demand Virtual
Top 10 Front Counter Mistakes & How to Avoid Them presented by Rick White, 180 Business Solutions
COVID-19 Disclaimer: By registering to attend this event, attendees acknowledge and understand that participation includes possible exposure to and illness from infectious diseases including but not limited to COVID-19 and knowingly and freely assume the risk of injury, harm and loss even if arising from the negligence, fault or conduct of AASP-MN, its employees, agents and representatives. Attendees agree to comply with all COVID-related procedures that may be implemented by AASP-MN and the event venue, including, but not limited to, mask-wearing and social distancing requirements and restrictions on certain activities that carry higher COVID-related risk, in order to protect as much as possible the health and safety of all event attendees.
10 | May 2021
AASP-MN News
AASP-MN ANNUAL MEETING & LEADERSHIP CONFERENCE REGISTRATION FORM Name: _______________________________________________________________________________________________ Company:____________________________________________________________________________________________ Email: ______________________________ Phone: ______________________________ Fax:________________________ Address: ________________________________ City: _____________________________ State: _____ Zip: ____________
Registration includes lunch, social hour & vendor showcase & access to all virtual break-out sessions, available on-demand from May 10 – June 10. Early Bird Pricing (before 5/6/21)
Standard Pricing (after 5/6/21)
$195 Member/$225 Non-Member ea.
$225 Member/$250 Non-Member ea.
Payment Options: ____Check enclosed. Payable to AASP-MN ____ Credit Card* (VISA, MC, DISC, AMEX 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. Card Number: ___________________________________________________________ CVC #: _____ Expires: ____ /_____ Billing Address: _______________________________________________________________________________________ Signature: ___________________________________________________________________________________________ Return with payment to: AASP-MN, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 Phone: (612) 623-1110 - Fax: (612) 623-1122 - Email: aasp@aaspmn.org Cancellations must be received no later than 5/6/21 in order to qualify for a full refund. After 5/6/21 no refunds will be issued and no-shows will be billed.
AASP-MN News
May 2021 | 11
Fees Include: Fees Include: • 18 Hole Green Fees •• 18 Hole Green Fees Golf Carts •• Golf Carts Prizes •• Prizes Social Hour & Dinner •• Social Hour & Dinner Contests • Contests ⇒ Closest to the Pin ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒
Name:
Closest to the Pin Longest Putt Longest Putt Longest Drive Longest Drive and MORE! and MORE!
th th Annual AASP-MN 26 26 Annual AASP-MN Golf Outing Golf Outing Wednesday, June 16, 2021 Wednesday, June 16, 2021 Majestic Oaks Golf Club Majestic Oaks Golf Club 701 Bunker Lake Blvd. 701 Bunker Lake Blvd. Ham Lake, MN 55304 Ham Lake, MN 55304
Note: Note: New Location! New Location!
Four Person Scramble Four Person Scramble Check-in - 11 - 11:30 am Check-in - 11 - 11:30 am 12pm - Shotgun Start 12pm - Shotgun Start
$100 per golfer/$400 per team $100 per golfer/$400 per team
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - AASP-MN 26th Annual Golf Outing Registration AASP-MN 26th Annual Golf Outing Registration June 16, 2021 – Majestic Oaks Golf Club June 16, 2021 – Majestic Oaks Golf Club
Name: Address: Address: City: City: Phone: Phone:
st 1st Player: 1nd Player: 2nd Player: 2rd Player: 3rd Player: 3th Player: 4 Player: 4th Player:
Fax: Fax:
Company: Company: _Company: _Company: Company: Company: Company: Company: Company: Company:
Zip: Zip: Email: Email:
_ _
___________________________________ ___________________________________
Registration Registration Deadline June 5 Payment Options: Payment Options: Deadline June 5 _____Check enclosed. Payable to AASP-MN _____Check enclosed. Payable to AASP-MN _____Credit card (Visa, MasterCard, Discover & American Express accepted) _____Credit card (Visa, MasterCard, Discover & American Express accepted) Credit card #___________________________________________Expires___________CVC #_________ Credit card #___________________________________________Expires___________CVC #_________ Billing address:________________________________________________________________________ Billing address:________________________________________________________________________ *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. Return to - AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 Return to - AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN Phone (612) 623-1110 - Fax (612) 623-1122 – email: aasp@aaspmn.org 55113 Phone (612) 623-1110 - Fax (612) 623-1122 – email: aasp@aaspmn.org 14 | May 2021
AASP-MN News
AASP-MN News
May 2021 | 15
INSURANCE I.Q.
2021 Workers’ Compensation Insurance
Market Outlook The workers’ compensation insurance market has remained mostly stable, performing as an outlier relative to other lines of insurance by producing profitable underwriting results. According to the National Council on Compensation Insurance (NCCI), the private carrier combined ratio for workers’ compensation in 2020 is estimated to be 86%, compared to an 85% ratio for 2019. Yet, some emerging trends have the potential to cause an uptick in workplace accidents and claims. For 2021, we predict that workers’ compensation rates will remain stable, with moderate rate increases becoming the norm.
2021 Price Prediction
Overall:
Flat to +5% Tips for Insurance Buyers
Trends to Watch • COVID-19 presumptions—Several states have enacted legislation regarding COVID-19 presumptions (the conditions in which an employee’s injury or illness is presumed to have happened on the job and should be compensated), increasing the likelihood of pandemic-related claims.* Specifically, some states have updated their statutes to include presumptive liability, which provides workers’ compensation benefits to a larger spectrum of employees—namely, essential workers who contract COVID-19. Although such laws are rebuttable, overcoming presumptions is a difficult feat, seeing as the burden of proof in these cases is often being pushed to the employer rather than the employee. • Mega claims—A mega claim is an exceptionally large claim—totaling $3 million or more in incurred losses—that typically stems from an employee getting seriously injured on the job. These claims can result in hefty costs, lost time and reputational damage for affected organizations. According to data from the NCCI, these claims have reached a 12-year high—increasing in both frequency and severity. • Comorbidities—Comorbid conditions are typically long-term health complications that have the potential to increase the severity of other injuries or illnesses that the affected individual may experience, making it more difficult to fully recover. According to a study conducted by the NCCI, workers’ compensation claims involving comorbidities have nearly tripled since 2000. • Qualified worker shortages—Labor shortages have forced many employers to hire inexperienced workers. However, doing so increases the risk of accidents occurring. This is because inexperienced workers often lack years of safety training and may be more willing to take unnecessary risks. • An aging workforce—According to the U.S. Bureau of Labor Statistics, the share of workers over the age of 55 is expected to increase to nearly 25% by 2024. This is concerning, as the cost of workers’ compensation claims often increases as employees age. After all, because health typically diminishes with age, even minor injuries can be more severe for older workers—taking them longer to recover.
• Implement safety and health programs to address common risks, especially when using a loss-sensitive workers’ compensation program. • Conduct routine safety training for employees of all ages and experience levels. • Develop an effective return-to-work program that properly supports employees in the process of healing from a work-related illness or injury and resuming job duties following their recovery.
For more information, contact Brad Schmid at 763-549-2247 or bschmid@cbiz.com
*Editor’s Note: In Minnesota, an employee who contracts COVID-19 is presumed to have an occupational disease arising out of and in the course of employment if the employee is a licensed peace officer, firefighter, paramedic or emergency medical technician; a nurse or health care worker, correctional officer or security counselor employed by the state or a political subdivision at a corrections, detention or secure treatment facility; a health care provider, nurse or assistive employee employed in a health care, home care or long-term care setting, with direct COVID-19 patient care or ancillary work in COVID-19 patient units; or a person required to provide child care to first responders and health care workers.
© 2021 Zywave, Inc. All rights reserved.
16 | May 2021
AASP-MN News
AASP-MN News
May 2021 | 17
ESTIMATING TIPS Audatex: Estimating “QAPTER” > Database Search Function Audatex users that have recently updated to the newer version on Qapter estimating will come across a new look and feel of the entire estimating system. Included among the enhancements from ADXE is the ability to search for part descriptions, guide numbers and part numbers to quickly locate and add parts into the estimate. Once in the “Damage” screen, users can click on the magnifying glass icon in the top menu and will be taken to the search box. Users can add part description or part number for the database to pull up applicable items. CCC: Door w/Strips on Body When R&I of headliner is performed, CCC/MOTOR GTE states, “Weatherstrip D&R” (Disconnect & Reconnect) is included. “Weatherstrip R&I” (Remove & Install) is NOT INCLUDED. CCC users should note the difference between the D&R versus R&I process when performing headliner operations. When headliner operations are being performed, this is based on one continuous step. Published repair procedures on operations
that require the headliner to be out of the way may not account for a full removal. If the operation requires the headliner to be loosened or removed multiple times in the process, that may result in additional labor to D&R the weatherstrip throughout various stages of repair as the process is performed multiple times. Always reference headliner footnotes for any specifics on included operations. If CCC users identify instances where the weatherstrip R&I shows as “INCL” without any footnotes, please submit an inquiry to the DEG for review. CCC: Manual Adjustments for Section Operations CCC/MOTOR GTE (P Pages) Special Precautions > Sectioning “Some sectioning operations are not subject to Overlap Operations listed in the Headnotes of varying component groups. Adjacent components factored into Overlap Operation considerations may not apply due to the sectioning approach being implemented. Overlap deductions should be determined after an on-the-spot evaluation once section approach has been determined.”
An example of this scenario can be found in DEG Inquiry 17983, to which CCC responded: “When sectioning the LOCK PILLAR (Cab Corner) and Replacing the roof panel, the system is deducting -6.0 hrs. H notes indicate that the six-hour deduction only applies to R/R aperture panel FULL Panel and does not apply to the sectioning of the “LOCK PILLAR.” Mitchell: Carpet/Insulation Pull Back vs Full R&I Mitchell Collision Estimating Guide (CEG) replacement procedures may include “loosen and pull back carpet and/or insulation as required” as part of the welded panel replacement operation. Recent DEG Inquiry 18042 states “pull back the carpet is simply to pull it back out of the way to facilitate the repair. Complete removal of the carpet is not included in floor replacement.” Always reference footnotes if a specific procedure and/or operation is listed. Footnotes take precedence over the CEG logic.
Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view these tips and others on the DEG website, DEGWEB.ORG.
18 | May 2021
AASP-MN News
COMPLETE HEALTH, ENVIRONMENTAL AND SAFETY SERVICES (C.H.E.S.S.)
Who's Afraid?
by Janet L. Keyes, CIH and Carol A. Keyes, CSP What would you do if OSHA showed up at your door? Or if you received a letter from OSHA, stating that, “MNOSHA received a complaint of safety and/or health hazards…The alleged hazards are as follows:” Would you open your doors, say, “Come on in,” and give the inspector free rein to wander? Or would you bar the door and refuse entry? We don’t recommend either approach. Having the required safety and health programs, providing necessary training to employees and controlling the hazards in your shop are the most important steps to being prepared. But even if you have all of that, an OSHA inspection can be nerve-wracking if you aren’t ready for it and don’t know what to expect. Why will OSHA inspect? The most likely reason: a complaint. Anyone can file a complaint with OSHA, but not all complaints are treated equally. Complaints signed by current employees or their representatives are taken the most seriously. Those are considered formal complaints. Nonformal complaints could be unsigned complaints from current employees or could be from ex-employees. All complaints are evaluated to determine if they seem valid (so, an employee complaint about the coffee being bad will not result in a visit from OSHA). OSHA gives the highest priority to imminent dangers – those situations that could be life-threatening. For those, OSHA is likely to show up. But OSHA won’t take an angry ex-employee’s word about an imminent danger. Instead, an agency director or supervisor will evaluate the information. If it seems legit, an inspector will be sent out right away. Formal complaints trigger onsite inspections. Those inspections are limited in scope to the areas of the complaint. If the complaint is about a missing guard on equipment, for instance, the inspector will not ask if your employees have had training on respirators. Informal complaints trigger those letters mentioned above. You must respond to them, either explaining why the hazard does not exist or explaining what corrective action has been taken. If you do not respond within the time listed
on the letter (usually two days for a complaint related to COVID, seven days for other complaints) or if your response seems lame, OSHA may show up on your doorstep. OSHA may also do (somewhat) random inspections. Those could be done because of a special emphasis program, such as for isocyanates or silica exposure. Or it could be because you’re in an industry with a high rate of injuries or illnesses. If you’re a small shop with fewer than 10 employees, this type of inspection is not likely. Having an employee injured so badly that overnight hospitalization is required will also trigger an inspection. OSHA’s here! You can tell them to go away. We don’t recommend that – it just forces OSHA to get a warrant, gaining you only a bit of time. If OSHA has to get a warrant, they will likely spend a lot more time in your facility. The inspector will ask for a manager or owner. Then he or she will show credentials and explain the purpose of the inspection. You’ll be asked for your OSHA 300 log (if you have fewer than 11 employees, you don’t have to have this). You’ll also be asked for written programs and safety training records, depending on the type of inspection. That will be followed by a walk-through of your facility or, if it was a complaint, through the part of your shop that pertains to the complaint. Go with the inspector. Take notes on what is found. Take pictures, too, especially of anything the inspector photographs. The inspectors cannot share their pictures with you, so if you want to dispute any finding, you’ll need your own documentation. The inspector is willing to talk with you during the walkthrough. Feel free to ask questions. If the inspector starts taking pictures of something, ask why if you don’t know why. If the inspector points out a hazard that you can correct right away, such as a bad electrical cord, fix the hazard. Inspectors will talk with some employees. They’ll ask if the employee has any health or safety concerns and if the employee received required training. They might ask how certain jobs are done. These conversations are confidential; you can’t listen in and you should not ask the employee what continued on pg. 21
AASP-MN News
May 2021 | 19
COVER STORY
by Joel Gausten
THE EV REVOLUTION:
EXPLORING THE NEXT WAVE OF SERVICE AND REPAIR - PART ONE There will be more changes impacting the collision repair and auto service industries over the next four years than in the last four decades combined. Although there are several things driving the statement above, the proliferation of electric vehicles (EVs) on American roadways is easily the biggest trend that anyone in the auto repair business needs to follow now to prepare for a new level of technology, training and specialization that will surpass anything that’s hit their profession in the past. Why EVs are Here to Stay When all is said and done, 2021 will go down in history as the year of EVs. In January, President Biden pledged his support of electric vehicle technologies, announcing plans (via a report in Reuters and other sources) to eventually switch the roughly 650,000 vehicles in the U.S. Government’s fleet to electric. As he noted in a January 25 statement, “The Federal Government […] owns an enormous fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America, by American workers.” The start of the new year also saw major news from General Motors (GM), which made headlines by stating it would not only explore EVs but make them the primary focus of production moving forward. As reported by CNBC, the automaker plans to stop making gasoline and dieselpowered vehicles by 2035. GM drove home its commitment to EVs in a statement posted on its consumer-facing website (gm.com/electric-vehicles.html): GM is on its way to an all-electric future, with a commitment to 30 new global electric vehicles by 2025. We are aggressively going after every aspect of what it takes to put everyone in an EV, because we need millions of EVs on the road to make a meaningful impact toward building a zero-emissions future. GM is positioned to design, engineer and produce EVs for every style and price point, and we are rapidly building a competitive advantage in batteries, software, vehicle integration, manufacturing and customer experience.
that “the OEMs have made a huge shift” over the last 18 to 24 months and are now greatly increasing their production of battery electric vehicles. “All of the electronics going on board right now are creating a very different world for the collision industry […] It’s no longer a small number of models within a small number of manufacturers. The EV production is now getting ramped up to be mainstream.” What the Industry Can Do With EVs destined to hit repair and service facilities at greater volume in the months and years to come, the best and most immediate advice everyone should follow is to go straight to the OEMs for the appropriate procedures, training and equipment information. As longtime industry consultant Mike Anderson (Collision Advice) sees it, there are far too many nuances to an EV repair for a technician to rely on past education and practices to guide them through it. “I was looking at a Fiat electric vehicle, and the procedure said that when you go to paint that vehicle, you don’t want the battery to have more than a 20 percent charge,” he recalled. “If the vehicle is fully charged, you need to drive it in circles with accessories added to it to bring the charge down. Everybody talks about researching OEM procedures from a collision perspective, but I can absolutely see how we need to be doing it on the refinish side. And that’s not new – that’s something we should have been doing all along. “In the case of one European auto manufacturer with a lithium battery, you need to check the vehicle’s temperature near the battery area multiple times after repairs to ensure the temperature is maintained,” he added. “If it isn’t, then you have to quarantine the vehicle and call in a specialist from the manufacturer. That’s been around for years in the OEM repair procedures; it’s just that most people haven’t been doing it or thinking about it.” Look for Part Two of this feature in next month’s AASPMN News.
Naturally, the push toward EV manufacturing will lead to substantial changes in what technicians traditionally know about vehicle repairs and handling. As just one example, internal combustion engines are comprised of more than 2,000 moving parts, while EVs have fewer than 20. This jaw-dropping comparison came courtesy of insurance industry veteran Jimmy Spears (now head of automotive at Tractable) during his presentation at a recent virtual Collision Industry Conference (CIC). “We’re going to have a significant amount of [additional] sensors [and] electronics,” he shared. “As we well know, these types of things absolutely increase the total cost of repair […] Not only do we have a sophisticated electronic part that is damaged, we also have a recalibration. We will certainly also have a more educated and probably a more demanding, higher-cost labor source.” Fellow CIC presenter Bob Augustine (Opus IVS) added
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AASP-MN News
C.H.E.S.S. continued from pg. 19 was told to the inspector. At the end of the inspection, the inspector will hold a closing conference, where findings and potential citations will be reviewed. If you think the inspector got something wrong, discuss it then. This is not the last word on citations – the inspector will propose citations but those have to be reviewed and approved by OSHA supervisors. The inspector will ask how soon you can get a problem corrected. That will become your abatement date, so you want to ask for a generous but reasonable amount of time. Our basic rules for the inspections: 1. Accompany the inspector. 2. Don’t be unreasonable. Don’t argue. Don’t be belligerent. 3. Don’t hide, don’t cover up, but don’t volunteer. 4. Take good notes and take pictures. 5. Correct what you can fix immediately. Problems found! Not all OSHA inspections result in citations. Inspectors do not have quotas. But if you were cited, you’ll receive a letter by certified mail, listing those citations and the process you need to follow. Once you receive that letter, keep track of time. You have deadlines to meet. If you miss the deadlines, fines can go up tenfold. • You need to post the citations near the hazard, so employees can see them. • You must correct the hazard. • You must file progress reports, telling OSHA it has been fixed.
• You may need to pay a penalty. • If you think the citation was wrong, contest it. Even if you admit that you were dead wrong, you can contest the severity, the amount of penalty or the abatement dates. We usually recommend contesting the citation. OSHA doesn’t get mad if you contest and doing so is likely to result in lowered penalties. The one time we typically advise against contesting citations is when we think the citations were justified and you are offered an expedited informal settlement agreement (EISA). An EISA, offered only for the not-so-bad inspections, reduces your penalty by 30 percent in exchange for you agreeing to not contest the citations. You will survive OSHA inspectors are usually pretty nice people – they go into this job because they care about people. Their aim isn’t to intimidate you, but to help you do the right thing and keep employees from harm. By law, they must cite you and fine you if violations are found. They take into consideration if they think you are trying to run a safe operation, if you show you care about your employees’ safety and health and if you’ve made some effort to comply. They also take into consideration the size of your business. Be respectful, pay attention to deadlines and you will survive it. And you’ll probably find it less painful than a sales tax audit. Check out AASP-MN’s educational resources on this topic, including “How to Prepare for an OSHA Inspection” and “Creating an AWAIR Program for Your Shop,” found at elearning.autoserviceproviders.com. For more information, contact Carol Keyes at (651) 4819787 or carkey@chess-safety.com.
AASP-MN News
May 2021 | 21
CASH IN ON YOUR MEMBERSHIP BENEFITS!
Employee Voluntary Benefits - Colonial Life A Partner to help you prepare for the unexpected
It’s more important than ever to prepare for the unexpected. We’re steadfast in our commitment to providing financial protection and personalized benefits counseling to your employees – wherever they are. What Does This Mean For AASP-MN Members? AASP-MN members receive dedicated representation from Deb Ferraro and Tracy Bailey who can help transform your benefit package with competitive rates, value added services at no cost and complimentary Section 125 Flex Plan documents and legal document preparation service for all of your employees. For many employers, benefits seem out of reach until they hear about voluntary benefits that include the following plans: • Disability • Accident • Dental and Vision
• Life • Cancer and Critical Illness • Medical Bridge
There is no impact to your budget, and most benefits can be payroll deducted on a pre-tax basis making them even more cost effective. They are available to groups with three or more employees, with no minimum participation requirements. Protect Employees’ Dental Health – New Dental Enhancements Available Life is full of unexpected smiles, and good oral health helps maintain them. Adding Colonial Life dental coverage is a simple way to help employees pay for dental care and enhance your employee benefits package at no additional cost. Features: • No minimums required – if one person wants dental, we can write the policy.
• ROLLOVER benefit – A portion of an insured’s unused benefit rolls over to the next year when preventive care and threshold conditions are met. • 100 percent coverage for preventive care. • Coverage of up to 80 percent for basic services and up to 50 percent for major services. • No waiting periods for preventive and basic services. • Takeover option – gives insureds credit for waiting periods under previous coverage including individual or spouse coverage. • Insureds can keep their dental coverage if they change jobs or retire with NO COBRA. • Rates are stable with no yearly renewal process and policies guaranteed renewable until age 75. • 117,000+ unique network providers. • Vision Rider available. Enrollment Tailored to Your Needs We’ll meet one-to-one with employees, in person, by phone and virtually. We’re using technology to make enrollment simpler, while continuing to offer the compassion and expertise that allows your employees to make informed decisions about the coverage best suited to their needs. Dedicated Support Please contact Deb or Tracy to learn more about how we can help you during these challenging times and create peace of mind with your employees. We can support you anywhere in the state of Minnesota. For more information, contact Tracy Bailey at (612) 801-0193 or tracy.bailey@coloniallifesales.com or Deb Ferrao at (612) 6004135 or deb.ferraro@coloniallifesales.com.
AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbiz.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums. EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN members with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. EMPLOYEE VOLUNTARY BENEFITS Colonial Life Contact: Deb Ferrao 612-600-4135 / deb.ferrao@coloniallifesales.com or Tracy Bailey 612-801-0139 / tracy.bailey@coloniallifesales.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: John Majchrzak 612-670-4034/ majchrzak-john@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.
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LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call. WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful 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 Mitchell 1 offers AASP members special discounts on the Mitchell 1 family of integrated software tools. Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ products-services/collision-repair-shop-solutions/cloudestimating for more information. TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit.
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CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/ Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.
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