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CONTENTS Vol. 31 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. ©2022 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.
SECRETARY-TREASURER’S MESSAGE.............................................4 Check the Box by Mike McLynn, AASP-MN Secretary-Treasurer
AASP-MN BOARD MEMBERS
LEGISLATIVE UPDATE.....................................................................5
PRESIDENT Jesse Jacobson
by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists
2022 - 2023
IMMEDIATE PAST PRESIDENT Tom Archambault SECRETARY-TREASURER Mike McLynn COLLISION DIVISION DIRECTOR Travis Doyle MECHANICAL DIVISION DIRECTOR Jeremy Nordgren
Maintaining and Building Strong Legislative Relationships
LOCAL NEWS..................................................................................6 Annual Meeting & Leadership Conference Recap: Alliance Moves Ahead at “Full Speed” with New Leadership and Goals by Alana Quartuccio Bonillo NATIONAL NEWS ............................................................................10
ASSOCIATE DIVISION DIRECTOR Paul Yager
D.E.G. ESTIMATING TIPS .................................................................16
COLLISION SEATS Lee Schlosser Aaron Swanson
INSURANCE I.Q................................................................................18
MECHANICAL SEAT Dan Gleason
CASH IN ON YOUR MEMBER BENEFITS! .........................................22 Employee Voluntary Benefits – Colonial Life
STAFF
EXECUTIVE DIRECTOR Linden Wicklund 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 & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com www.grecopublishing.com
UPCOMING EVENTS May 11 "Common Paint Booth Exposures" Webinar Visit aaspmn.org for registration information
June 15 27th Annual AASP-MN Golf Outing Majestic Oaks Golf Club Ham Lake, MN
ADVERTISERS’ INDEX A-Con Recycling........................................... 8 AAA Parts....................................................... 10 Aramark.......................................................... 17 Dentsmart....................................................... 11 Inver Grove Honda/Inver Grove Toyota.... 5 Jack McClard................................................. 21 Keystone......................................................... 16 Maplewood Toyota...................................... 19 Mopar Group ................................................ 15 Morrie’s .......................................................... 17
AASP-MN News
MPA.................................................................. IBC Proven Force........................................................ OBC Reliable Automotive Equipment..............12-13 Rosedale Chevrolet...................................... 15 Spanesi............................................................ 20 Straight & Square....................................... 4, 19 Thomas Greco Publishing.......................... 17 Toyota Group................................................ 21 Valspar Refinish............................................ IFC
May 2022 | 3
SECRETARY-TREASURER'S MESSAGE
Check the Box By Mike McLynn AASP-MN Secretary and Treasurer
As the new Secretary/Treasurer of AASP-MN, I want to share with all of you my own experience with the Alliance that led me to this role. It all started with “checking a box” on the annual renewal form years ago. I had no idea how big of an impact that would have on my future. I never anticipated I would be in a leadership position, reminding others of the importance of joining. Over the years, I have been able to tour some very impressive shops, visit the Lube-Tech plant and testing facility and see the Veit Automotive Foundation’s Educational Museum. I have had countless conversations with other shop owners, not just about business but family and life too, who I wouldn’t have met otherwise. Each of these interactions
opened my eyes in unexpected ways and helped me grow. The wealth of information shared at the Mech XChange events, and the comfort provided by experienced shop owners encouraging me, has pushed my business and leadership forward, as has the experience of having the answers to someone else’s struggle, because I’ve been there. The exchange of ideas that owners are implementing at their own shops elevates the entire industry and creates a deep sense of community within the AASP-MN membership. These shops give back so much to their local communities, the industry and the association. The members of AASP-MN continue to inspire me, and I am thankful for all the connections I have
made. The level of professionalism was intimidating at first, but I soon realized how “normal” and relatable everyone is. Many of those I have met started in a small business like mine and now they own multiple locations. Finding an organization to be part of that is not dominated by egos and is instead filled with people genuinely interested in working together is extraordinary. I have received more from the Alliance than I could ever give. Don’t be afraid to check the box.
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AASP-MN News
LEGISLATIVE UPDATE
Maintaining and Building Strong Legislative Relationships Senate Republicans have unveiled their tax bill – an $8.4 billion tax cut package – signaling to potential voters that tax relief is their top priority. House Democrats argue the money should be invested into education, human health and services and other areas via supplemental budget appropriations. Split control of the legislature has resulted in partisan posturing thus far. Additionally, with redrawn legislative districts and every seat being up for election in November, there is a lot of political messaging happening at the Capitol. As a result, it’s uncertain what, if any, compromises will be reached as we near the end of the legislative session. Despite the partisan environment, AASP-MN has maintained strong relationships with legislators on both sides of the aisle who have championed our work. AASP-MN remains a critical stakeholder in industry conversations at the Capitol. To that end, AASP-MN successfully advocated to maintain the definitions of “high-value'' and “late model” in salvage titles by educating committee members, providing testimony and submitting letters of support. AASP-MN also sponsored legislation that would require insurers to accept or deny submitted claims within three days. While this legislation has chief authors and has
by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists
been introduced, it’s the beginning of a longer advocacy campaign that will run into next year. As we think about the following year, the record turnover and the number of new faces at the legislature present an exciting opportunity for AASP-MN to educate new members on critical issues impacting the industry and ultimately push legislative solutions. This will require building a foundation in the “off season” by determining which legislative changes to pursue. Current potential top priorities include “short-pay” and prevailing rate disagreements. We will continue to collect evidence of the negative impacts of these practices on shops and consumers as we craft our legislative agenda. Beyond refining our priorities and gathering supporting information, we will need to educate seasoned and new lawmakers alike who sit on relevant committees. One of the most effective ways to do this is to build relationships that give people a chance to connect with decision-makers as people. Shop tours with elected officials and candidates are a great way to accomplish this. Members of the AASP-MN Government Relations Committee will be taking the lead on this work and sharing updates and opportunities to take action with the broader membership.
AASP-MN News
May 2022 | 5
LOCAL NEWS
Annual Meeting & Leadership Conference Recap: Alliance Moves Ahead at “Full Speed” with New Leadership and Goals Learning one’s purpose. Practicing effective yourself if they are cavalier about the big things. Are you leadership. Creating worthwhile partnerships. Those are doing something to address that?” just a few of the valuable lessons that Alliance members Good leaders must also change their way of took home from this year’s AASP-MN Annual Meeting & thinking. Leadership Conference, held April 7 at the Crowne Plaza “Check your motives. Do a gut check. Ask yourself, Minneapolis West. ‘Is my mind open, and am I willing to learn something In line with this year’s “Full Speed Ahead” theme, thetoo? Do I want them to be better at meeting their goals Alliance got right down to business with a hefty agenda or just do what I want them to do?’” of educational and motivational speakers who kept Following Weinstein’s presentation, attendees members entertained and engaged throughout the day. took advantage of the opportunity for one-on-one The conference also provided the opportunity for new interactions, sharing ideas and contemplating solutions Executive Director Linden Wicklund to meet and greet to industry issues as they spent 30 minutes at a time members of the Alliance she had yet to interact with rotating between three discussion groups on the prior to the event. following seven topics: shop culture; blueprinting; “I am delighted to meet all of you,” she took to the marketing; collision management software; 20 groups; podium to welcome everyone and offered, “If I haven’t tips and tricks for recruiting employees and scams, ripmet you yet, please seek me out and say hello. I would offs and con artists. also love to visit your shops. Whether you are a supplier, As lunch got underway, the Alliance presented Gary mechanical shop or collision shop, I’d love to come see Lofald, longtime AASP-MN member and former owner you in action, meet your staff and find out what makes of Fourth Street Auto Body (Duluth), with the Honorary your company unique.” Member award. A member of AASP-MN since 1995, The day began with Chad Weinstein of Ethical Lofald served as president from 2004-2005 and has Leaders in Action who had repairers thinking about chaired committees, led programs and contributed in how to best carry out their role as leaders and ways many ways over the years. to build strong relationships that can help attract and “There is an amazing amount of knowledge in this retain employees to their facilities with his presentation, room,” Lofald told his peers. “The networking that “Staying on the High Road - Service, Professionalism andhappens in this room is unbelievable. My little success Leadership.” story is all because of you folks.” He encouraged all to think about their sense of Next, attendees learned about a program designed purpose. to prevent the theft of catalytic converters by way of “This is a world of total distraction and idiocy on the labeling the device with a unique number which will roads. I have never seen so many distracted drivers. It’s aid law enforcement in the search for these criminals. an unbelievable time. The work you do quite literally has AASP-MN Lobbyist Sam Richie gave the audience the ability to save lives, so if you have people in your an update on legislation AASP-MN is pushing for, organization who are cavalier about the small things, ask including amendments to the salvage title statute and a bill that would require insurers to respond to a repair supplement within three business days. Outgoing President Tom Archambault (BLVD Autoworks; St. Anthony) took to the microphone to reflect on the Alliance’s greatest accomplishment of the past year - finding its new executive director. “We are so grateful Linden applied for this position. She really embodies the core values of the Alliance. During the interview process, she said ‘I like working with people who fix things,’ and that’s us, and we liked that. You’ll be pleasantly surprised to find she is exactly who we were looking for.” Each year, the Alliance recognizes those members AASP-MN Executive Director, Linden Wicklund
6 | May 2022
AASP-MN News
by Alana Quartuccio Bonillo
Kamphof’s engaging discussion painted a clear picture of where one’s mind tends to go when negative things hapen and how one’s own definition of failure is actually an opportunity to become successful. She piloted participants to look at challenges diferently in order to bring positive change. “What if everything hapened FOR you, not O T you?” she asked. “The next time you are struggling, think about how it is hapening FOR you. You will start to see solutions.” Understanding one’s own purpose is another step to becoming a good leader. “When we know our purpose, it makes a big diference. e W can see ourselves as leaders. When you know your why, your what has more impact. Don’t just WKNO your why; WNO it.”
Alliance members took part in roundtable discussions
who went above and beyond in recruiting new members. This year’s efforts resulted in a four-way tie between Archambault, Jese Jacobson (Hepner’s Auto Body; o W odbury), Tony Newman (Dale Feste Automotive; Hopkins) and Dan Sjolseth (Superior Service Center; Eagan). New Board members were welcomed: Dan Gleason (Pro-Tech Auto Repair; Corcoran) will serve as the Mechanical Seat, and Aaron Swanson (Lamettry’s Collision; Eden Prairie) came on to fill the Collision Seat. Tony Newman (Dale Feste Automotive; Hopkins), Loren Feldkamp (Lube-Tech & Partners; St. Paul) and Matt Feehan (Fix Auto Body; Oseo) were honored for their service to the Board. Next, Archambault handed over the gavel to incoming President Jese Jacobson who shared his excitement for a future under new leadership with fresh ideas and new strategies. “I am honored to lead the most-committed auto association in the country,” he expressed. The mic was turned over to keynote speaker Dr. Cindra Kamphof (author of Beyond Grit and CEO of Mentally Strong Consulting) who taught attendees how to get out of their comfort zone and get comfortable with being uncomfortable during her presentation, “Beyond Grit - Embracing Pasion and Persee v rance for the Future.” “This industry has a lot of turnover so being able to be relatable and to be your best takes the ability to be flexible to change,” she advised as she outlined steps towards a brighter future. She had the whole audience literally stomping their feet and clapping their hands through an interactive sesion which paired up attendees in the practice of taking turns reciting the words “one, two, three” and later replacing the words with a foot stomp or clap. The exercise represented the hiccups and unpredictability they often encounter in their shops.
Outgoing AASP-MN President Tom Archambault passed the gavel to Incoming President Jesse Jacobson
The educational portion of the day wrapped up with three breakout sesions. “When the shop gets busy, every technician stops being thorough, and the shop owner stops being thorough,” said Aaron Stokes (Shop Fix Academy) as he explained how to break the habits that cause panic on the shop floor in his “Tech Momentum” presentation. Scheduling work in ada v nce and leaving room for walk-ins can really aid in getting a better handle on productivity, he suggested. Louie Sharp (Sharp Auto Body and author of The Gifted Leader - How to Grow Your Business for More Profit & Freedom ) got repairers thinking about the benefits of listening to their employees as a way to improve productivity with his talk “Productivity + Eficiency = Profit.” “Let them be heard. The most powerful way to do that is to repeat back to them exactly what they said,” he pointed out. “People leave leaders, NOT jobs. They will leave you because they feel unappreciated because they aren’t being heard or understood.” continued on pg. 8
AASP-MN News
May 2022 | 7
LOCAL NEWS continued from pg. 7
Thank you 2022 year-long sponsors Platinum Sponsors LKQ Minnesota Lube-Tech Gold Sponsors AASP National Auto Value /APH CBIZ Elite Worldwide FinishMaster United Fire Group Lucnheon Keynote Presenter Dr. Cindra Kamphoff
Silver Sponsors 3M Automotive Aftermarket aaa Auto Parts Aramark Axalta Coating Systems Colonial Life Dentsmart PDR Enterprise Rent-a-Car Heartman Insurance NCS/Single Source O’Reilly Auto Parts PAM’s Auto PPG Sherwin-Williams Shop Monkey Suburban Chevrolet
Repairers also had the chance to hear more from Kamphoff who led a “Beyond Grit” workshop, which exposed participants to more leadership development skill exercises. The day concluded with a vendor showcase and reception where attendees socialized and were awarded multiple door prizes courtesy of event sponsors. Congratulations to all the winners and to Will Latuff (Latuff Brothers Auto Body; St. Paul) who took home the $1,000 grand prize.
Bronze Sponsor C.H.E.S.S
AASP-MN Executive Director Linden Wicklund congratulates Gary Lofald, Honorary Member recipient
BUMPERS PILING UP?
2022 SkillsUSA Winners Announced The 55th Annual Minnesota SkillsUSA competition for collision repair and automotive service technology was held Saturday, April 9 at Dakota County Technical College, Rosemount. The competition allows high school and college students to demonstrate their abilities and talents in collision repair and automotive service. AASPMN volunteers were out in force to help plan, organize and judge the competition. Congratulations to the following SkillsUSA contest winners:
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Auto Service Technology College Division 1st Place - Madyan Khidir, Minnesota State Community & Technical College, Moorhead 2nd Place - Isaiah Specht, Minnesota State Community & Technical College, Moorhead continued on pg. 18
AASP-MN News
Registration deadline Registration June 5!
Deadline June 5th!
Fees Include: • • • • •
18 Hole Green Fees Golf Carts Prizes Social Hour & Dinner Contests ⇒ Closest to the Pin ⇒ Longest Putt ⇒ Longest Drive ⇒ and MORE!
27th Annual AASP-MN Golf Outing Wednesday, June 15, 2022 Majestic Oaks Golf Club 701 Bunker Lake Blvd. Ham Lake, MN 55304
Four Person Scramble Check-in 11 - 11:30 am 12pm Shotgun Start
$100 per golfer/$400 per team
-------------------------------------------------------------------------AASP-MN 27th Annual Golf Outing Registration June 15, 2022 – Majestic Oaks Golf Club Name:
____________________________________Company:
Address:
_________________________
_________City: __________________________
Phone:____________________________ Fax:
____________________
Zip:____________
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Email: ____________________________
1st Player:
Company: __________________________________________
2nd Player:
Company: __________________________________________
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___________CVC #_________ Billing address:________________________________________________________________________ Return by June 5 to: AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 Phone (612) 623-1110 - Fax (612) 623-1122 – email: aasp@aaspmn.org AASP-MN News
May 2022 | 9
NATIONAL NEWS
$22 Billion Channel Product Shift www.langmarketing.com
Distribution Product Shift Over $22 billion in product volume shifted among the five major light vehicle aftermarket channels between 2011 and 2021. This is the largest product shift in more than 75 years. This is the largest car and light truck product shift in aftermarket
product distribution since World War II and reflects a wide range of market factors: changes in DIFM and DIY outlet product volume, the rapid expansion of the foreign nameplate aftermarket and eCommerce growth, to name only a few. Channels Expanding Product Volume Two of the five major distribution channels expanded their product
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share over this 10-year span, while three were losers. These changes in channel share mark an inflection point in the evolving strength of distribution channels that will likely continue for several years. Together, the integrated and import channels added nearly $17 billion in product sales between 2011 and 2021. These were the only two channels to expand their product share over this 10-year span. Integrated Distribution Leads in Product Growth The integrated channel is characterized by product ownership, or franchised affiliation, not changing hands from the time they are purchased from manufacturers to their sale to an installer, DIYer or another end-user. The integrated channel boosted its car and light truck product sales by nearly $13 billion at user-price between 2011 and 2021. This unprecedented growth represented over half of light truck aftermarket product expansion during these 10 years. Import Channel Product Gain The import channel, which includes import warehouses and import jobbers, recorded the largest percentage increase in product volume (as a share of its 2011 sales) over the past 10 years. The rapid expansion of the foreign nameplate aftermarket has fueled the growth of the import channel, which has benefited from the expansion of direct-selling import warehouses and the surge in the foreign nameplate share of vehicles in operation (VIO). Two-step import warehouses are at the distribution heart of the fastgrowing foreign nameplate market, as import channel product sales soared by more than $3 billion at user-price between 2011 and 2021. This represents more than a 50 percent gain in the import channel’s product volume. Channel Share Losers Over the past 10 years, three channels shrank in light vehicle product distribution share: traditional, OE and specialized.
However, only the specialized distribution failed to record an increase in product volume between 2011 and 2021. Traditional Channel The traditional channel, with its multi-tiered distribution involving traditional warehouses and traditional jobbers, recorded the second-largest product growth between 2011 and 2021. Despite adding over $4 billion to its product volume, the traditional channel accounted for a smaller 2021 car and light truck product share than it held 10 years earlier. The traditional channel is engaged in both two-step and three-step aftermarket distribution. Two-step distribution achieved a higher product growth rate than its three-step distribution over these 10 years. OE Channel The OE channel consists of OE suppliers (and their affiliates) shipping products to vehicle dealers across the country. Although the OE channel accounted for a lesser share of light vehicle product distribution in 2021 than 10 years earlier, its nearly $3 billion increase reversed a decline in product sales from 2007 through 2017. Specialized Channel The specialized channel is engaged in two types of distribution: one that focuses on a limited array of products, and another that is involved in certain aftermarket sectors. Specialized distribution is the only major channel that suffered a decline in product volume between 2011 and 2021. Shift in Aftermarket Product Share More than one-fifth of aftermarket product volume shifted among the five major channels between 2011 and 2021. This amounted to more than $22 billion in product volume (at user-price) shifting among major distribution channels. Two Channels Add Product Share The integrated channel increased its product share
by nearly 3.0 percent between 2011 and 2021, a share gain of nearly one-tenth, followed by the import channel, which added 1.5 percent to its share, expanding its product share by one-fourth. Three Channels Decline in Product Share The specialized channel shrank nearly 3.5 percent in product share between 2011 and 2021, while the OE channel and traditional channel each declined approximately 1.0 percent in car and light truck product share. Continuing Product Sales Shift Car and light truck product shifts among major distribution channels will continue and most likely accelerate over the next five years. Six Major Takeaways: • Over $22 billion in car and light truck product sales at user-price shifted among the five major distribution channels between 2011 and 2021. • Integrated distribution achieved the largest gain in car and light truck product sales over this 10-year span, nearly a $13 billion surge at user-price, as its sales expanded by over one-third. • The import channel recorded the largest percentage product gain in car and light truck product share between 2011 and 2021. • The traditional channel ranked second in light vehicle aftermarket product growth between 2011 and 2021. Nevertheless, it declined in share over these 10 years. • The OE channel increased its product volume between 2011 and 2021, reversing a trend of declining sales between 2007 and 2017. Nevertheless, it suffered a decline in share. • Changes in channel share between 2011 and 2021 mark an inflection point in the evolving strength of distribution channels that will likely continue and accelerate for several years.
AASP-MN News
continued on pg. 14
May 2022 | 11
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NATIONAL NEWS
A Powerful Tool to Help Repairers Succeed In this complex and – all too often – challenging industry, collision repairers certainly need all the help they can get their hands on to remain successful. One of the best tools around is available to all repairers for FREE, courtesy of CRASH Network and Collision Advice via their quarterly “Who Pays for What?” survey. The survey provides an opportunity for shops to lend their voices to the industry by reporting about operations, and the results help educate them – and the whole industry – about “not included” operations, while also tracking trends and reporting issues. The data compiled can be used in negotiations and even as a training tool. Repairers can sign up to take the surveys at crashnetwork.com/collisionadvice. Everyone who completes the survey receives a report once the results are compiled. Results are also available for download via the website. Making its debut in 2015, the survey came to be as a result of a collaborative effort between well-known industry consultant Mike Anderson (Collision Advice) and John Yoswick (CRASH Network). “When I had my shops, there was a publication called Collision Insight, produced by this guy named Charlie Baker,” explained Anderson. “It was this little newsletter with industry trends in it. He always had a survey about 20 things relating to the top eight insurers which asked, ‘How often did you get paid for those?’ This was back in the days of fax machines. So, you would fill it out and fax it to him. Then he’d compile the results and put them in a future issue. “I used to love that,” he continued. “Once I became a consultant, I wanted to do something along the same lines but on a grander scale. So, I called John Yoswick at CRASH Network and suggested putting out a survey collaboratively. We put together a list of questions and got it out, and people saw value in it.” Once the survey got off the ground, repairers took to it quickly, Yoswick and Anderson report; one of the first surveys brought in more than 1,000 responses, according to Yoswick.
14 | May 2022
Anderson decided to break it into four surveys, which are distributed in January, April, July and October and conducted annually. “We decided to group them into themes,” says Yoswick. “There have been some changes over the years, but we always do one on refinishing operations, one on body labor operations, one on frame and mechanical and one on scanning and calibration and/or shop materials, which would ask questions such as ‘Are you charging for seam sealer?’” Anderson cited the four main reasons why repairers should take the 15 to 20 minutes to complete the quarterly survey: “The number one reason is to create awareness about things repairers may not be charging for. Number two is to show repairers that they aren’t ‘the only one’ and to give them confidence they aren’t alone. Third, it’s also a great training tool; repairers can take the results and share it with their staff during training. “The fourth benefit is a credit to the Database Enhancement Gateway (DEG). We’ve upgraded over the years to include links to the DEG inquiries that show ‘notincluded’ operations after every question.” Some interesting things have been uncovered over the years as a result of the surveys. For the past six years, repairers have been asked if they charge for administrative fees on total losses. Back in 2015 when the survey debuted, only 46 percent reported asking for reimbursement “regularly, always or most of the time.” Yoswick indicates their most recent results show that figure has driven up to 72 percent. Although the survey does generate results from hundreds of shops each quarter, Anderson still wishes more would complete it and therefore encourages every repairer to invest the time. It doesn’t cost anything more than a few minutes and using the results brings a high-level of value into one’s business. “It’s just good for the industry,” says Anderson.
AASP-MN News
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AASP-MN News
May 2022 | 15
ESTIMATING TIPS Mitchell: Interior Masking for Truck Bed Refinish – Inquiry 19742 provides feedback regarding NOT INCLUDED interior bed masking operation. Mitchell provides additional interior masking calculations in page 28 refinish procedure. Interior masking may be necessary when refinishing exterior surfaces to stop overspray damage that is not prevented by adjacent panel perimeter masking up to 36 inches or substitute with cover vehicle (bag) complete, which includes back taping or application of foam tape. Should additional masking be required, the estimating system provides functionality to allow the user to manually input masking operations. “The .5 represents masking the entire opening of the bed to prevent overspray from getting inside the bed while the painter is refinishing multiple outer panels of the bed or performing a refinish bed complete. In a case where only a single bedside is being refinished this additional time to mask the opening would generally not apply.” Audatex: Stellantis/FCA “Net, Form and Pierce” Procedure NOT INCLUDED – DEG Inquiry 19798 provides feedback regarding a procedure commonly found in Stellantis/FCA repair procedures: “Net, form and pierce is a manufacturing process which takes place during the original build of the vehicle. The original part will have a beveled platform that
will decrease toward the fastener location mounting hole. Replacement parts in these areas may not include bevel (form) or fastener hole (pierce) and will need to be adapted for proper fit and finish.” Audatex response to this operation is, “Per the DBRM we do not offer repair, fitting, or modification of new replacement parts (unless part is being sectioned). No change warranted at this time.” All Three Systems: Checking and Filling Transmission Fluid CCC – DEG Inquiry 20048, “Checking transmission fluid using a dipstick is included with radiator R&R/R&I. On vehicles that do not have dipsticks on automatic transmissions, checking fluid would not be included in R&R/R&I radiator and would need to be an on-the-spot evaluation agreed upon by estimators.” Mitchell – DEG Inquiry 11715, “Checking the ATF level is not in the scope of the radiator replacement procedure and is not included in the labor allowance.” Audatex – DBRM Page 43, “Drain, refill and/or top off transmission fluid.” Fluid cost is NOT INCLUDED in any of the three Information Providers.
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.
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16 | May 2022
AASP-MN News
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AASP-MN News
May 2022 | 17
INSURANCE I.Q.
CYBER UPDATE
Ransomware Largest Driver of Cyber Insurance Claims in the Last Five Years Ransomware represented the number one cause of loss in a study of almost 6,000 cyber insurance claims, with the average ransom rising to $247,000 and the average incident cost up to $352,000 in 2020. NetDiligence’s 11th annual cyber claims study evaluated 5,797 claims arising from incidents between 2016 and 2020. Across the five years of claims data, ransomware accounted for 32 percent of all incidents affecting small to medium enterprises (SMEs). Hacking incidents were a distant second at 10 percent, and business email compromise followed at nine percent. The study revealed that ransomware events accounted for 79 percent of claims with a business interruption (BI) expense, with an average BI cost of $446,000 in 2020 and an average BI cost of $316,000 over the five-year period. Ransomware events also caused 81 percent of claims involving recovery expense losses, according to the data. Professional services firms were found to have the highest frequency loss over the last five years, followed by manufacturing, health care, technology, retail and financial services. The top five sectors account for 70 percent of claims and 74 percent of total incident costs. Professional services firms also contributed 32 percent
($229 million) of overall incident costs; this number is well above health care, which was 11 percent. Claims costs range from less than $1,000 to over $120 million. Nearly all (99 percent) came from SMEs (small to medium sized enterprises) for a total of $537 million in losses, and the losses associated with the one percent of claims striking large businesses reached $727 million. The averages include “some very expensive claims,” the authors of the report noted. For SMEs, six claims in the sample reached over $5 million, with one costing over $100 million. For larger companies, 10 claims featured costs between $15 million and $100 million. NetDiligence said it found no link between business size and the magnitude of a cyber loss, with the largest event affecting an SME. “With ransomware again the number one cause of loss, we will be watching closely to see whether cyber policyholders, especially SMEs, deploy sufficient cybersecurity safeguards to reduce their ransomware exposure and qualify for ransomware coverage. If not, the challenge will be how we, as an industry, can help them get there,” said Mark Greisiger, NetDiligence president, in a statement. For more risk management and insurance guidance, contact Brad Schmid at bschmid@cbiz.com or (763) 5492247.
LOCAL NEWS continued from pg. 8
3rd Place - Madison Schuler, Dakota County Technical College, Rosemount
3rd Place – Noah Scherping, St. Cloud Community & Technical College
High School Division 1st Place – Jacob Kragero, Moorhead Senior High School 2nd Place – Carter Norman, Moorhead Senior High School 3rd Place – Jon Thayer, St. Cloud Community & Technical College
No High School Division
Collision Repair College Division 1st Place – Brad Bakker, Ridgewater College, Willmar 2nd Place – Tanner Friesen, Ridgewater College, Willmar 3rd Place – Jose Nunez, Minnesota State CollegeSoutheast Technical, Winona No High School Division Refinishing College Division 1st Place – Brad Bakker, Ridgewater College, Willmar 2nd Place – Cole Poncelet, Dakota County Technical College, Rosemount
18 | May 2022
Congratulations to all!
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. To further those efforts, MNCARS recently participated in the following event: • Bemidji High School Career Fair April 11 Thank you Scott Merschman (Kenny's Clark and Goodyear) for your participation
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!
AASP-MN News
AASP-MN News
May 2022 | 19
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AASP-MN News
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May 2022 | 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 1-to-1 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 Ferraro at (612) 600-4135 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 AASPMN 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.
22 | May 2022
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. WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cuttingedge 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/collisionrepair-shop-solutions/cloud-estimating for more information. TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k).
AASP-MN News
SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING AUTOMOTIVE SEMINARS Contact: Tim Houghtaling 920-866-9813 / tim@automotiveseminars.com Discounted pricing to AASP-MN members on all live-online events, as well as on-demand training videos. Automotive Seminars specializes in diagnostic training that provides automotive technicians with knowledge, testing techniques and data interpretation skills needed to diagnose today’s vehicles. The live-online events and on-demand training videos focus on automotive electronics and engine management systems and are written and created by some of the industry’s leading diagnostic technicians. BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-onone 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.
