AASP-MN News May 2023

SEAT

Shannon Christian

MECHANICAL SEATS

Tim Kruze

Randy Notto

STAFF EXECUTIVE DIRECTOR

Linden Wicklund

OFFICE MANAGER

Jodi Pillsbury

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UPCOMING EVENTS

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

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

Third Tuesday Each Month, 12:30-1:30pm Mechanical Monthly Morning Zoom Meetup

Third Thursday Each Month, 12:30-1:30pm Collision Monthly Morning Zoom Meetup

June 21

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

The Game Has Changed: Perspectives from Two Different Generations

By Travis Doyle, AASP-MN Collision Division Director & Aaron Swanson, AASP-MN Secretary/Treasurer

During the AASP-MN Annual Meeting, the board rotations took place. Aaron Swanson of LaMettry’s Collision stepped into the Secretary/Treasurer role and Travis Doyle of Arrowhead Auto Body will continue as the Collision Director. The two of them teamed up to share their unique perspectives on how the industry has changed over the years.

From Aaron:

My career has included working at a small independent shop in the ’90s, a number of years at two different ABRA locations, and 13 years at American Family Insurance. I found myself back on the body shop side, working at LaMettry’s as a compliance coordinator, when deteriorating comradery and relationships became the norm on the insurance side. I had one manager at American Family who told us “just be fair.” That manager was gone within two years. Managers were doing increasing numbers of desk audits. Estimators used to be able to negotiate, look at what the bottom line was and move forward with a verbal “repair per shop estimate.” There was comradery between the adjustors and the estimators. There is no comradery function built into today’s world of AI and algorithms. You don’t know who or what is on the other side. We went from severity levels to audited lines, but even with those changes the power dynamic is shifting. Supply and demand put shops in a stronger seat of power. Interestingly, the supply and demand shift is more about the complexity of cars, pandemic parts, labor shortages and slowdowns on the insurance side, with multiple and delayed supplements and increased claims. The supply of shops is the same, but the demand is up in new and changing ways. AI on the insurance side is designed to help address these issues, particularly the staffing issue, but for now the automation is inefficient at best.

From Travis:

We opened our first family shop in the late 90s, so I have been around the shop in one way or another for a long time. More recently, as my own career has taken off, we opened our second location. I have watched as the Duluth area market has shifted and changed over the years. The one thing that really stands out to me is the strength of the independent model. Large conglomerates have come into the market and tried to run shops with a manager heading up operations, but no matter how good those managers have been (and I know they are good because several now work at our shops), the way you oversee a shop is different when you are managing one versus leading it. There is a different level of autonomy and insight into how to make changes to meet long term goals. Being a business manager and a company owner are interconnected but starkly separate at the same time. As cars are getting more complicated, this separation of roles is showing up in other areas too. Technicians are no longer the ones primarily responsible for fixing a vehicle. It takes a well-trained team to properly blueprint a vehicle, look up all the procedures, one time use parts, order parts and communicate with the customer. This has added more production assisting roles in collision facilities, like repair planners and scan/ calibration technicians. Electric vehicles and widespread high-tech innovations like ADAS are going to keep contributing to the one-person-can’t-do-it-all trend.

Both of us agree the trends in the industry point to more permanent changes. Any longing to reduce conflict by relying on hard-built relationships is wasted if the plan of action doesn’t account for the increasingly complex and fractured environment we operate in. Shops need to focus their energy on communicating and building trust in entirely new ways with everyone involved: team members, insurance adjustors, customers and even the larger community in which they operate.

Paid Medical and Family Leave Bill Takes Shape

With the DFL in control of both chambers of the legislature and the Governor’s office, there are policy priorities that party leadership has made clear will become law during the 2023 session – “Paid Medical and Family Leave” being one of the most high profile. And while its passage is all but a foregone conclusion, some details of consequence are yet to be finalized. Opinions on this policy vary, but AASP-MN members must be up to speed for what will eventually be passed into law.

This complex draft legislation has made multiple committee stops in the House of Representatives and the Senate, with amendments changing some provisions at nearly every stop. The following is a high-level summary of what the Senate and House bills include thus far, but with the caveat that things continue to evolve.

In both the Senate and House bills, the state will allot $670 million to get the program started. Employers and employees will then split a payroll tax of 0.7 percent to fund the program into the future. After working for an employer for three months, employees would be eligible to take 12 weeks off for a qualifying medical event and 12 weeks to care for a family member. Employees would be entitled to their same or similar position upon returning. Both instances of this leave would require documentation. The Department of Employment and Economic Development (DEED) will hire approximately 400 fulltime employees to administer the program. Grants for small businesses are also part of the proposed legislation in both chambers.

There are several provisions that differ between the House and Senate versions. For example, the Senate version currently caps the number of consecutive weeks a person could take if they have qualifying family and medical events at 20 weeks. In the House, a person could take 24 weeks (12 weeks per event). Additionally, the Senate version now includes a lower tax rate for businesses with fewer than 35 employees.

AASP-MN continues to track this issue and has considered many factors as we decide how best to weigh in. Some questions we have considered include:

(1) Will this impact our members, and to what extent?

(2) Do members largely share the same opinion about

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

the policy or are opinions varied? (3) Do we have the power to impact the outcome? (4) Who else is leading in shaping the legislation and are there opportunities to advocate through these channels?

In exploring these questions, we have determined that legislation that changes employment law will most certainly impact our members. What is far less clear is the extent of the impact. This is because key details are still being negotiated, including lower tax rates for small businesses. Additionally, AASP-MN members, like the broader small business community, have varying opinions on whether this is a helpful or detrimental policy. Some feel this allows small businesses to compete with those offering robust leave programs. Others worry that employees will start taking time off for non-critical medical reasons, and companies will be short on labor and have increased overhead expenses.

The opportunity to influence the ultimate outcome is minimal as this program will become law in some form given past DFL support and complete control of state government. However, there is an opportunity to voice concerns specific to small businesses. To that end, AASP-MN has submitted letters to relevant legislative leaders that broadly outline key supports for small businesses. Additionally, the opportunity to be instrumental in the rule-making and implementation phase is even more critical. Therefore, AASP-MN will submit comments during the rule-making period and advocate for DEED to gather feedback from small businesses during the implementation phase.

Shifting gears, we know as laws change, the practicalities of how AASP-MN members conduct business will need to adapt and may require legal consultation. As part of Fryberger’s services to AASPMN, shops are entitled to consultations with the skilled business attorneys in our Duluth office. Many members have utilized this opportunity for services ranging from common employment law questions to help with creating or updating employee guidelines and handbooks. If you have legal questions or issues, please reach out to Linden Wicklund (612-623-1110 or linden@aaspmn.org) or Sam Richie (218-301-9758 or srichie@fryberger.com) to get in contact with the appropriate Fryberger attorney to help assist your shop.

Meet the New AASP-MN Board Members

The new AASP-MN Board members were introduced at the Annual Meeting & Leadership Conference, April 5 at the Minneapolis Marriott Northwest in Brooklyn Park. Each will serve a three-year term 4/1/23 – 4/1/26. They are:

Randy Notto, Lenfer Automotive & Transmission, Lino Lakes – Mechanical Seat

Hello, I’m Randy Notto, one of the newly elected Mechanical Seats of AASP-MN. I’m the owner of Lenfer Auto & Transmission in Lino Lakes and Wyoming. I have been a shop owner for over 30 years and worked for my father prior to taking over the business in 1989.

I am Shannon Christian, owner of Shannon’s Auto Body, a family-owned and operated business out of Brainerd. I have been in the industry for over 30 years and have been operating my business for over 28 years. My business includes a collision center, mechanical shop, Western & SnowEx snowplows sales and service and I will also be opening a new state-of-the-art 40,000 square foot collision repair facility in Brainerd soon.

An active member of the collision repair industry, I have participated in and led 20 groups at the local, regional and national level. A strong passion has always been to improve the industry through the education of customers and other shops on correct repair procedures. I continue to work closely with SCRS, Collision Hub, Collision Advice and NABR.

My wife, Amie, is an active member of the business as well. We share a blended family of eight children and one grandchild. We enjoy traveling and spending time at the lake with friends and families.

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 collegelevel automotive service and collision repair programs and, ultimately, into industry workplaces.

Spring is here and the end of the school year is getting closer. This means that many of the school advisory boards are meeting! MNCARS participates in as many of these meetings as possible, but it takes many committed volunteers across the state to reach all the schools. MNCARS partner the Minnesota Transportation Center of Excellence has lists of colleges, technical schools, and high schools around the state with automotive programs. Schools with Perkins funding are required to have advisory boards with industry participation. Visit: minntran.org/industry/getinvolved/

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!

I have been an AASP-MN member since 1989 and have realized a tremendous benefit from my membership and participation in Alliance activities and events, and I’m happy to be able to give back.

Through my membership and involvement in AASPMN, I have built relationships with many other members that have been extremely valuable. They have shared information on difficult repairs, loaned me tools and discussed difficulties I may have been having in my business, often offering a different point of view or way of approaching the problem.

Like many of you, I am plenty busy just trying to run my business and don’t have a lot of time to find things out on my own. Our association does a great job helping us all stay on top of new laws and regulations so we can run our business instead of the business running us.

AASP-MN has also done the homework for us when it comes to cost savings programs. From credit card processing and uniform and linen supplies to workers’ compensation and property/liability insurance, the association’s programs are difficult to beat!

If you haven’t been an active member, make 2023 your year! I encourage everyone to get involved. All of you have more to offer than you think. And, I promise, you will get 10 times back what you put in.

Tim Kruse, TGK Automotive, Hugo –Mechanical Seat

I have been in the automotive industry for 34 years. I started as a parts runner then moved on to technician, management, owner, director of operations and now market director. I enjoy every aspect of this industry and the people who work in it. The fast pace and everchanging vehicles are what keeps me intrigued and interested in this industry still today, and tomorrow.

I have been involved with AASP-MN for a couple years and enjoy having conversations with others in this industry about how to make it better. I am also President of the WBL HS Automotive Program, and a Board Member for Century College. I have been married for 24 years, with two children (grown men) and a dog. I love hunting, fishing, snowmobiling and ATV riding in my spare time.

Shannon, Randy and Tim join other members of the Board, which include:

Shannon Christian, Shannon’s Auto Body, Brainerd – Collision Seat

• Mike McLynn, Automotive Electric, Grand Rapids – President

• Jesse Jacobson, Heppner’s Auto Body, Woodbury –Immediate Past President

• Aaron Swanson, LaMettry’s Collision, Eden Prairie, Secretary/Treasurer

• Paul Yager, Enterprise Rent-A-Car, Eagan, Associate Division Director

• Travis Doyle, Arrowhead Auto Body, Hermantown, Collision Division Director

• Dan Gleason, Pro-Tech Auto Repair, Corcoran, Mechanical Division Director

Join AASP-MN for the 28th Annual AASP-MN Golf Outing

The 28th Annual AASP-MN Golf Outing is Wednesday, June 21, 2023 at Majestic Oaks Golf Club in Ham Lake. All collision repair and auto service industry professionals and suppliers are invited to attend the event to enjoy a day of golfing and socializing with industry peers.

Play will begin at 12:30 pm, followed by dinner and an awards presentation. The cost to participate is $100 per golfer or $400 per foursome. Golf holes are also available to sponsor for $350 each.

For additional information, see page 18 or visit the association’s website, aaspmn.org or contact the Alliance office at aasp@aaspmn.org or (612) 623-1110.

Thank you 2023 Year-Long Sponsors!

Platinum Sponsors

LKQ Minnesota

Lube-Tech

Gold Sponsors

3M

AASP National

Auto Value / Benco

CBIZ

FinishMaster

NCS / Single Source

ShopMonkey

Silver Sponsors

Aramark

Axalta Coating Systems

Colonial Life

Enterprise Rent-A-Car

Heartman Insurance

O’Reilly Auto Parts

PPG Automotive Refinishes

Sherwin-Williams

Suburban GM Parts

Sunbelt Business Advisors

United Fire Group

Bronze Sponsor

aaa Auto Parts

C.H.E.S.S.

Dentsmart PDR

Radco

Scrappage Is Shaping the Aftermarket

Vehicles in operation (VIO) are a primary determinant of the volume and mix of the light vehicle aftermarket products and brands in the U.S. The VIO is shaped by new car and light truck annual sales and vehicle scrappage (vehicles removed from operation).

The relative importance of these two factors in shaping the VIO and, therefore, the aftermarket is changing. Over the past three years (2020 to 2022) new vehicle sales have moved sharply lower, with annual volume down approximately 15 percent. Lang Marketing projects that new vehicle sales will remain weak through 2024 and, perhaps, longer. Accordingly, the number of vehicles in operation and their age and nameplate mix are changing based on the number and type of vehicles being scrapped each year.

Low Scrappage Rates

The vehicle scrappage rate in the U.S. historically increased with the growth of new vehicle sales and declined when the new car and light truck market slumped. Before COVID-19, light vehicle sales were running at a record-high rate and contrary to historical patterns, annual vehicle scrappage was low.

Annual Scrappage Rates

From 2000 to 2010, annual scrappage averaged more than 5.3 percent of vehicles in operation. In 2013, the light vehicle scrappage rate rose to 5.7 percent. However, in 2016 when new car and light truck volume reached five million more than five years earlier, the scrappage rate fell to 4.4 percent.

Despite record-high new car and light truck annual sales between 2015 and 2019 (yearly sales averaged more than 17 million), annual scrappage averaged only 4.5 percent, significantly lower than the 5.2 percent average annual scrappage over the previous five years (2010 to 2014).

Scrappage from 2020 through 2022 averaged below five percent, despite some “catchup” in scrappage stemming from the low annual levels of the previous five years.

Differing Scrappage Rates by Vehicle Features

The annual scrappage rate varies by three vehicle features: age, nameplate and power plant. With new vehicle sales at a low ebb since 2020, scrappage has taken on a greater significance in shaping the VIO according to these three vehicle features.

Vehicle Longevity and Age

The average life of vehicles in operation has significantly increased over the past three decades as manufacturing techniques have improved and the durability of materials used in new cars and light trucks has increased.

These factors have boosted the age at which vehicles are scrapped. In addition, the increasing value of used vehicles has raised the cost threshold at which vehicles are scrapped due to accidents. Accordingly, even as the average age of vehicles increased and the number of older cars and light trucks on the road climbed, the scrappage of older vehicles has been moderate among age groups that traditionally had high scrappage rates.

Domestic Nameplates

Domestic nameplates account for a minority of new car and light truck sales but represent a large share of vehicle scrappage. This reflects the higher average age of domestic nameplates compared to their foreign counterparts.

Despite averaging more than 53 percent of cars and light trucks in operation from 2016 through 2021, domestic nameplates represented two-thirds of light vehicles scrapped during these years.

Foreign Nameplates

The VIO share of foreign nameplates was onethird greater between 2016 and 2021 than their 33 percent share of vehicles scrapped during this time. This reflects the younger average age of foreign nameplates and their higher average value compared to domestic nameplates of the same age category.

Scrappage by Power Plant

Almost all vehicles scrapped in the U.S. are Internal Combustion Engine (ICE) models. Accordingly, low annual scrappage allows greater numbers of ICE vehicles to remain in operation, boosting the size of the ICE aftermarket.

In contrast, low new vehicle sales diminish the number of ICE vehicles in operation, but ICE cars and light trucks still account for the predominance of cars and light trucks on U.S. roads (99 percent in 2022).

Aftermarket Impact

Low scrappage rates in the U.S. are boosting aftermarket size and changing the mix of aftermarket products and brands used. This occurs in three ways. First, low scrappage boosts the average age of

vehicles in operation and the population of older cars and light trucks on the road. Since older vehicles use more aftermarket products per mile than newer models, low scrappage helps to increase aftermarket sales.

Second, since vehicle scrappage is concentrated among domestic nameplates, low rates mean that more domestic nameplate cars and light trucks remain in operation longer. This slows the rate at which the domestic nameplate aftermarket is declining.

Third, low scrappage rates help to maintain the number of ICE vehicles in operation since virtually all vehicles scrapped (besides those in accidents) are ICE vehicles. Accordingly, low scrappage boosts the ICE aftermarket.

Six Major Takeaways

• The VIO in the U.S. is shaped by new car and light truck annual sales and the vehicle scrappage rate. Over the past few years, the relative importance of these two factors in shaping the VIO has shifted.

• Despite record-high new vehicle sales from 2015 through 2019, annual scrappage averaged only 4.5 percent, substantially lower than the 5.2 percent average yearly rate over the previous five years. Scrappage remained moderate from 2020 through 2022, despite an increase in the average age of vehicles in operation and the growing population of older cars and light trucks.

• The rate of vehicle scrappage varies by three vehicle features: age, nameplate and power plant.

• Low scrappage increases the average age of the VIO and the population of older vehicles. Since older vehicles use more products per mile than newer models and product brand use differs by vehicle age, low scrappage is boosting aftermarket product volume and influencing aftermarket brand use.

• Low scrappage helps to keep more domestic nameplates on the road, slowing the aftermarket reduction of that aftermarket segment. Since product brand use differs between domestic and foreign nameplates, the domestic and foreign nameplate share of aftermarket product volume influences product brand use.

• Since ICE vehicles constitute 98 percent of the VIO, low scrappage keeps more ICE vehicles on the road, boosting the ICE aftermarket and the volume of aftermarket brands.

Audatex: Adjusting Blend Labor Value – Audatex provides customers a quick and easy process to adjust the automated blend hours.

Solera has provided the following instructions to adjust the blend labor value.

“A user can adjust the time in our Solera Qapter estimating solution when there is a need to adjust the automated blend hours. The slide out provides the full refinish time and the blend time so the user is aware of the full panel refinish times as they consider any adjustments for blend labor time.

Steps for adjusting blend refinish hours in Solera Qapter Estimating:

1. Select the appropriate part (the slide out will appear)

2. Select Blend Refinish

3. Select the gear icon in the Blend Refinish bar

4. Enter the user defined time in the Labor Hours box

5. Select Save & Close”

CCC/MOTOR: “Blend” Allowance for Parts Not Serviced as Individual Components – DEG Inquiry 23447 states,

“After review of MOTOR Crash Estimating Data, estimated Refinish times are developed for the exterior panel(s) as serviced by the OEM. Blend allowance is calculated using 50 percent of the nonoverlapped base panel refinish time for the same component published in the MOTOR database. The 2018-23 Toyota Camry “Lock Pillar” is not serviced as an individual OEM component. Blend allowance can be selected from the Quarter Panel or as a Manual Entry for a section (Lock Pillar) of the vehicle that is not offered as an individual OEM component.

Please note: It is MOTOR’s position that Blend allowance for a section or area of the vehicle that is not offered as an individual OEM component is best reserved for the judgment of an estimator/appraiser following a thorough on-the-spot evaluation of the specific vehicle and refinish requirements in question.”An example of these parts may include lock pillars or roof rails which are common components of a larger service assembly.

All Three Systems: Back Side Corrosion Protection/ Overspray Mist – Replacement or repaired body panels may require additional efforts to restore the corrosion protection on the panel backside by using an epoxy or 2k primer that has been tinted to replicate the OEM appearance. In addition, the backside may have a unique overspray appearance. Additional labor and material for backside panel corrosion protection and refinishing effort is NOT INCLUDED in CCC, Mitchell and Audatex.

Honda provides an excellent example of its requirements on Corrosion Protection for Honda Vehicle Repair, page 3, “Backside treatment of new panels.”

OEM Electronic Parts Catalogues – DEG has made recent updates to its Electronic Parts Catalogue resource page with additional manufacturer links to OEM parts schematics. In addition to the OEM websites listed, we’ve included partslink24, which has become a useful tool for DEG validation, and provides repairers the ability to look up the same OEM electronic parts catalogues from major European automakers (Audi, BMW, JLR, Polestar, Volvo, Porsche, VW). The online catalog provides a VIN decode that helps with correct part pricing and part numbers including any supersessions.

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

The Database Enhancement Gateway (DEG) helps improve the information in collision repair estimates through repairer feedback about vehicle-specific errors, omissions and inaccuracies in the databasae and labor times. If you are performing automotive repairs of any kind - collision or mechanicalyou need to utilize the DEG! Check out some recent Database Inquiries - and their resolutions - below!

2023 AASP-MN Annual Meeting & Leadership Conference Leaves Automotive Professionals with “New Perspectives”

Celebrating accomplishments, strategic planning, exploring the DNA of champions and being reminded about why it is so very important to fix cars correctly are just some of the many takeaways from the Alliance’s 2023 Annual Meeting & Leadership Conference, held April 4 and 5 at the Marriott Minneapolis Northwest. Each and every component of the two-day event was designed to leave Minnesota automotive repair professionals with new perspectives, not only on building and improving their businesses, but also shaping them toward more effective leadership.

Things kicked off with several options for repairers to learn about everything from ADAS to improving one’s bottom line and writing more effective estimates. The day was – literally – topped off with an evening of fun at Topgolf where food, drinks and social interaction were, of course, par for the course!

AASP-MN member shop LaMettry’s Collision welcomed fellow repair professionals into their Bloomington location for an up-close view of what is needed to perform ADAS calibrations on site. “It gave them an opportunity to see what goes into operating a space like this, along with the tooling and equipment needed,” explained Paul Bostel, lead master technician. He added that the average shop likely deals with space constraints, and their shop is utilizing the open space in their 13,000 square facility to be able to handle these ADAS calibrations.

“You don’t grow from a place of fear...you grow from a place of abundance. You grow from gratitude. When you are afraid, you retract, you constrict, you ball yourself up and don’t put yourself out there,” stressed Rick White (180BIZ) as he presented “Six

Steps to Skyrocketing Your Bottom Line.”

“If everyone tells you ‘you are the only one’ and ‘you can’t charge for that,’ people start to believe it,” shared Josh Shaw (Shannon’s Auto Body; Brainerd) who presented “Writing and Negotiating Estimates from a Minnesota Expert.”

“I can stand here all day and tell you that you can charge for that, but until you start doing it and seeing it, you won’t really get it. Some people are amazed when they find out we can charge for some of these things.”

Best-selling author Ross Bernstein, who has written over 50 sports-business books in his career, kicked things off on April 5 with the first part of his keynote presentation, “The Champion’s Code.” After grabbing some coffee and breakfast treats while visiting vendors, attendees filed into the ballroom at Marriott Minneapolis Northwest where they were engaged and inspired to think differently about raising their game to the next level.

Bernstein used sports icons as examples of how one can be a champion in their own businesses.

“We like to do business and be led by givers, not takers,” Bernstein expressed. “Look at NHL’s Wayne Gretsky. Wayne was a captain. It was his responsibility to lead. When I asked him what he considered to be his legacy, he thought about it and said he wanted to be known as the hardest worker – to be the guy who helped his teammates the most. Wayne never threw his teammates under the bus. It was his job, his purpose, to help make them better. He said he enjoyed assists more than scoring goals. He made it his job to build confidence in others.”

Taking a page out of the book of NFL great Tom Brady, Bernstein demonstrated that “in sports and business, it can be easy to get to the top but harder to stay at the top. That’s the essence of the dynasty mentality. It’s about consistency to get to the top and to stay at the top, to kill your customers with amazing service.

“Forty-five is dog years in professional sports, and Brady was playing professional sports among kids half his age,” he continued. “I interviewed thousands of athletes in my career, and I never met a more competitive human being in my entire life.”

Brady hated losing more than he loved winning; the fear of failure drove him. According to Bernstein, Brady was so determined to stay on top of his game that he spent $2 million to hire private coaches to work with him in areas of diet and nutrition, mental health and sleep.

Incoming AASP-MN President Mike McLynn and Executive Director Linden Wicklund

By Alana Quartuccio

Next, AASP-MN Executive Director Linden Wicklund took to the mic to share vital State of the Industry information compiled via a survey conducted amongst member and non-member shops across the state to help the Alliance get a better understanding of the realities in shops today as part of the association’s strategic planning agenda.

The survey polled mechanical and collision shops in various areas such as how long they’ve been in business, what work they specialize in and the biggest challenges they face. It also polled shops about exit strategies, electric vehicle (EV) readiness, ADAS and thensome. The information ruled out assumptions, helping to paint a clearer picture of what these businesses face in today’s world.

Some similarities between mechanical and collision were found, such as both sides have been feeling the burn of the tech shortage. In addition to staff woes, both cited receiving payment and overhead expenses among their biggest challenges.

It was also assumed that rural area shops would have more repeat customers over metropolitan areas where more shops are located, but the collected data showed the opposite, as Wicklund pointed out.

She left repairers with a lot to think about and asked them to consider what tomorrow looks like in their shop. “Reach out to me. Chat with people here. Figure out what your business will look like in the next 10 or 20 years. Ask yourself: what are you doing today? Who are your customers? Who are the technicians you hire, and what are the technologies you are working on?”

Next, attendees participated in roundtable discussions on the following leadership/general business topics: “Under Construction”, “Inclusive Shop Culture,” “Customer Retention & Five Stars,” “Hiring Students & Tech School Partnerships,” “Small Changes with Big Returns,” “ADAS,” “Electric Vehicles” as well collision-specific topics “DRPs & OEM Certifications –When to Add or Drop” and “Negotiation Tips and Tricks” and the mechanical-specific topic, “Hiring an Experienced Mechanic & Other Magic Tricks.”

Led by Tony Newman (Dale Feste Automotive; Hopkins), the biggest takeaway many participants took from the “Hiring an Experienced Mechanic & Other Magic Tricks” discussion was that in-house

referrals led to some of the best new hires.

“Change can bring challenges,” commented Wayne Watson (Auto Works Automotive Service Center; Woodbury) who led the “Under Construction” roundtable. “It was fun listening to everyone talk about remodeling, etc. Every story told about change had challenges that were not planned for. Everyone’s story had a happy ending, thank goodness.”

During lunch, the Alliance dove into its Annual Meeting, welcoming new Board members, honoring outgoing ones and celebrating accomplishments achieved in 2022.

Plaques were presented to outgoing Board members Lee Schlosser (Autoworks Collision Center; Rockford), Tom Archambault (BLVD Autoworks; St. Anthony) and Jeremy Nordgren (Nordgren Automotive; Medina), who was not present. New to the Board for 2023-2024 are Tim Kruze (TGK Automotive; Hugo), along with Randy Notto (Lenfer Transmission; Lino Lakes), as mechanical seats, and Shannon Christian (Shannon’s Auto Body; Brainerd) as collision seat. (Learn more about the new Board members on page 6).

Outgoing President Jesse Jacobson (Heppner’s Auto Body; Woodbury) championed Wicklund who came on board as executive director at the start of 2022. “My job, along with the rest of the board, was to lend support as Linden found her own way leading the organization. She has been working hard since day one, has immersed herself in the issues affecting our members and has been actively working to find solutions.”

He then cited the Alliance’s strategic plan for the next three to five years: to tackle the workforce shortage issues with a broad lens, continue to build on the Alliance’s tenure as a leader and to lead by amplifying its members’ voices.

Jacobson also thanked the Alliance’s sponsors for their support. “They are our ambassadors and our allies.”

Carrying out the tradition of passing the gavel, Jacobson turned it over to Incoming President Mike McLynn (Automotive Electric; Grand Rapids).

McLynn thanked Jacobson for his leadership and

continued on pg. 16

Outgoing AASP-MN President Jesse Jacobson

Special guest presenter Marcia Seebachan

continued from pg. 15

the great ideas he has brought to the Board and looks forward to working with him and the entire Board in his role as President.

Wicklund reminded members about the regional meetings they have launched that meet in person or via Zoom on a monthly basis and provided an update on MNCARS, which “has done an incredible job with social media outreach and marketing.”

“MNCARS has been around long enough to know how to stand our ground and get our work done, and it is mature enough to reach out and build strong partnerships,” reinforced Wicklund. She looks forward to the automotive workforce summit planned for this summer, which will bring organizations together to help bring forth the next round of leaders in this industry.

Next, attendees got an up close and personal account of a family whose lives were altered forever due to an improper repair. Whether one was previously familiar with the John Eagle Collision Center case or not, it was certainly an eye-opening experience to listen to Marcia Seebachan talk about the ongoing pain and loss she and her husband Matthew have to live with for the rest of their lives.

Photos of the burnt and crumbled remains of the Honda Fit were displayed for attendees as Marcia went through their struggle for survival and the shock they experienced when it was discovered they suffered severe injuries because the roof was not welded on as per OEM standards, but glued. Their story has changed how the industry looks at safe and proper repairs.

“Most people drive pre-owned cars. I have not met a single person who was aware that cars are not being fixed right. People deserve to make informed decisions when they are buying a car,” she stated, as she pleaded for every repairer to consider everyone’s lives when they fix vehicles.

A series of breakout sessions followed Seebachan’s presentation.

“Short Pay Resolution Pathways,” presented by Brian Chenvert (Insuraclaim), dove into controlling the narrative of the claim. Shops are likely to hear “we don’t pay for that” when negotiating, and Chenvert

reminded repairers that it’s actually the insured’s duty to present their claim to the insurance company, not the body shop. “It’s up to the insurer, but the reason they allow you to put in the claim is because they are trying to control the narrative.” He also went over the importance of understanding Minnesota statutes and when to file a complaint with the Department of Commerce.

Attendees heard more from Ross Bernstein who dove deeper into his sportsbusiness analogies with “Wearing the C.” Out of all the sports in the world, golf is truly the only one that has a culture of integrity. He pointed to Hale Irwin who was honest about taking a practice shot and would report this to the judges to make sure he took the penalty.

“Doing the right thing, even when no one is looking. That is what you need to think about at your shops. Are people doing the right thing?”

Rick White of 180BIZ returned to the seminar floor offering “Profit Shouldn’t Be an Accident,” where he stressed “grow to profit” mentality is not the way to go as one will wind up just digging a hole. If a shop has the potential to hire four technicians but only has the work for three, it’s not smart to hire that fourth tech until the work is backed up for weeks. “You don’t want to grow to profitability; you want to profit all the time,” he advised.

As EVs sales start to grow, it is important for shops to start thinking about taking on the business of servicing these vehicles. Brett Kinsfather of ShopMonkey spoke on “The EV Servicing Opportunity for Independent Shop Owners.” Currently, there are roughly 15,000 EVs being driven in the state which “isn’t a huge number, but it is growing and is something to think about,” suggested Kinsfather.

Led by Bradley Peterson (Sunbelt Business Advisors), the “Preparing to Buy, Sell or Expand” panel discussion featuring Tom Archambault, Calvin Smith and Kevin Elden gave automotive shop owners the

CBIZ was one of many vendors taking part in the annual conference

Alliance members interacting at Topgolf

chance to hear from their peers who have had success in growing and selling their businesses.

For Elden, a former shop owner, it was important to him and to his employees to make sure his business went into good hands and would be maintained the way he always did. He turned over what he called his “Bible” to the successor. “It had everything. Emails, contacts and all my standard operating procedures. It even had information on who cleans the bathroom. It took out the guesswork.

“I felt very comfortable selling it to [the new owner] as I knew it would be okay, as long as they relied on the people I had there.”

Archambault shared stories of having worked with a business coach, which was quite beneficial to his business. To him, the move to use a coach was “not a sign of weakness, it’s a sign of strength.”

Josh Shaw dove deeper into the importance of writing proper estimates with “Profitable Collision Repair Plans,” where he prompted fellow collision repairers to be firm. “If you keep doing the same thing over and over again and not making any ground, why is that? You want to have a profit. I can get into a discussion with XYZ insurance company, but at the end of the day, it’s whatever we decide as a business.” He suggested working with other repairers can help everyone get on the same page. “As an industry, we

won’t move forward, unless we all put it out there.”

After happy hour and more vendor interaction, everyone gathered for the final portion of Ross Bernstein’s presentation.

As he reviewed 10 more business improvement ideas inspired by some of the sports world’s greatest, he stressed that driving change is about finding one’s own way – and there really is no one right way.

He told the story of Lyndsay Vohn, known as one of the greatest skiers of all time. She never stopped reaching for more when she met a goal. She would simply raise the bar. Raising the bar took her as far as she could go, and when she wasn’t able to reach her last goal, she found a new purpose as trainer to Mikaela Shiffrin who wound up surpassing Vohn as the greatest skier in the world.

Bernstein’s final message was “Provide incredible customer service. If you don’t, then someone else will.”

Prizes were presented throughout the day courtesy of AASP-MN’s sponsors. Congrats to grand prize winner Cathy Ruhmann (Referral Collision; Shakopee) who won a $200 Visa gift card and a planter, which Wicklund plans to personally hand deliver to her shop filled with fresh flowers.

Wednesday, June 21, 2023

12:30 p.m. Shotgun Start

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

AASP-MN 28th Annual Golf Outing Registration June 21, 2023 – Majestic Oaks Golf Club

Name: Company:

Address: City: Zip: Phone: Fax: 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)

Registration Deadline June 10!

Four Person Scramble Check-in 11:30 am12:00 pm

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 10 to: AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 Phone (612) 623-1110 - email: aasp@aaspmn.org

PARTNERS IN PREVENTION

Vehicle Air Conditioner Servicing and Disposal

Stay compliant and avoid violations regarding the servicing and disposal of Vehicle Air Conditioners.

Motor Vehicle Air Conditioning (MVAC) equipment uses refrigeration to cool the compartment of vehicles. These MVAC units and other refrigerating equipment contain various chemicals (e.g., chlorofluorocarbon (CFC)-12 and hydrofluorocarbon (HFC)-134a) that can destroy the earth’s protective ozone layer and contribute to climate change. Under section 609 of the Clean Air Act, these refrigerants must be captured and not knowingly released into the environment.

Regulatory Requirements for Servicing MVAC Systems

• Technicians must always use EPA-approved refrigerant and refrigerant handling and/or recycling equipment.

• Certification is also a requirement for all individuals servicing any MVAC system.

• Refrigerants must be properly recycled or reclaimed before it

can be reused, even if it is being returned to the vehicle from which it was removed.

• Prevent the mixing of refrigerants and use containers with unique fitting for each refrigerant.

• Sell refrigerants made of (CFC)-12 and (HFC)-134a to only certified technicians, buyers that employ at least one certified technician, certified wholesalers, or appliance manufacturers for eventual resale.

Recordkeeping Requirements and Sales Restrictions for Service Shops

• First time auto body shops servicing MVAC systems must certify to their EPA regional office that they are properly using approved refrigerant handling equipment.

• To certify your equipment, provide a written statement signed by the person who acquired the equipment and send your signed certification statement to the EPA regional office.

• Keep records of technician

training and certification on-site for three years, including the address of any facility to which recovered refrigerant was sent.

• Sellers of refrigerants must display a sign where sales occur stating the certification requirements for purchasers. Additional information can be found here: epa.gov/mvac/ epa-regulatory-requirementsmvac-system-servicing

Management and Disposal of MVAC Refrigerants

MVAC systems typically enter the waste stream with their refrigerant charge intact. When that happens, the final person in the disposal chain must remove the refrigerant or ensure their customer has removed it prior to disposal. Before disposal of an MVAC or MVAC-like appliances (e.g., contained in cars and trucks):

• Remove the non-exempt refrigerant from the appliance and reduce the system pressure to below 102 mm of mercury vacuum.

• The equipment used to recover refrigerant from appliances prior to their final disposal must meet the same performance standards as refrigerant recovery equipment used for servicing.

• Refrigerants must be recovered from air-conditioning equipment dismantled on-site before disposal.

• Refrigerant in self-sealing “small cans” containing less than two pounds of refrigerant are exempt from this sales restriction and any reporting requirements.

• Anyone selling refrigerant must verify that the buyer is properly certified and must post a sign that explains the sales restrictions.

• Appliance disposal and recycling

facilities must keep a copy of all the signed statements or contracts indicating non-exempt refrigerant was recovered properly from appliances. Records should be maintained for three years.

• Keep records of individuals who recovered refrigerants and the date the refrigerant was recovered along with signed contracts between the disposal facilities and suppliers certifying that the refrigerant had been previously properly recovered.

MVAC Servicing Best Practices

• Locate and repair leaks before topping off a system and do not add more refrigerant than necessary.

• Never mix refrigerants or use a refrigerant not intended for an MVAC system. Mixing refrigerants causes hazards to human health and the environment.

• Consider purchasing certified

refrigerant identification equipment.

• Comply with all specifications on refrigerant containers, vehicle manufacturers’ manuals, and lubricants, and avoid replacing MVAC system components with salvaged parts or parts meant for another refrigerant.

• Avoid sparks or flames in the work area and wear safety glasses and insulated gloves.

• Ensure there is no direct contact of refrigerant with skin and work in a well-ventilated area.

What You Need to Know:

EPA’s Significant New Alternatives Policy (SNAP) Program has introduced a transition to three low global warming potential (GWP) climate friendly MVAC refrigerants under the Significant New Alternatives Policy (SNAP) Program. The hydrofluoroolefin (HFO)-1234yf, carbon dioxide, and (HFC)-152a poses lower risk to

public health and the environment, does not deplete the ozone layer and all have significantly lower impacts to the climate system than (CFC)-12 and (HFC)-134a.

As of 2012, automobile manufacturers began the transition to new climate friendly GWP alternatives. It is important for both consumers and technicians to be aware of these alternative refrigerants, their properties and proper servicing procedures.

EPA has a fact sheet with more details on (MVAC) System Servicing at: epa.gov/mvac or visit the MPCA webpage -working with refrigerants at:.pca.state. mn.us/business-with-us/workingwit-refigerants. You can also contact the MPCA Small Business Environmental Assistance Program for confidential assistance on regulatory matters at (651) 2826143 or e-mail smallbizhelp.pca@ state.mn.us

GETTING

Greco Publishing has successfully served the automotive repair industry for over 30 years in print, online and as an association liaison.

Our publishing team handles all pre-press production in-house, from ad design to editorial layout.

Greco Publishing also provides a variety of different services to cover the needs of our clients, helping to facilitate day-to-day business.

973.667.6922

info@grecopublishing.com

@grecopublishing

We do all of the heavy lifting so you can focus on what’s most important:

YOUR MESSAGE OUT THERE.

THOMAS GRECO PUBLISHING

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 and Tracy 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.

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:

• Disability

• Accident

• Dental and Vision

PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE

CBIZ

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

• Life

• Cancer and Critical Illness

• Medical Bridge

For many employers, benefits seem out of reach until they hear about voluntary benefits that include the following plans: There is no impact to your budget, and most benefits can be payroll deducted on a pre-tax basis, making them

• 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.

AASP-MN MEMBER BENEFIT PROGRAMS

WEBSITE AND INTERNET MARKETING SOLUTIONS

Autoshop Solutions

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

BUSINESS FORMS/CALENDARS

AASP-MN

Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org

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

EMPLOYEE BENEFITS

Business Planning Professionals

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

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

EMPLOYEE VOLUNTARY BENEFITS

Colonial Life

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

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

UNIFORM & LINEN SUPPLIES

Aramark

Contact: Rick Krenz

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

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

CREDIT CARD PROCESSING

Association BankCard Services

Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz

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

LEGAL CONSULTATION

Fryberger, Buchanan, Smith & Frederick

800-496-6789

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

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

REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS

CARS COOPERATIVE

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

INFORMATION PROVIDERS

Mitchell 1

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

Mitchell International

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

TECHNICAL INFORMATION HOTLINE

IDENTIFIX

800-745-9649

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

CHECK GUARANTEE SERVICES

Certegy Check Services

877-520-2987

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

AUTO EMPLOYEE ASSESSMENT

Assessment Associates International

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

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

Discounted rates on printed business forms and calendars.

PAYROLL PROCESSING

CBIZ Payroll

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

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

SAFETY COMPLIANCE

Complete, Health, Environmental & Safety Services

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

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

LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING

AUTOMOTIVE SEMINARS

Contact: Tim Houghtaling 920-866-9813 / tim@automotiveseminars.com

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

BUSINESS COACHING

180BIZ

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

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

SHOP SOFTWARE

Condition Now

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

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

• 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