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CONTENTS Vol. 31 No. 6
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.
AASP-MN BOARD MEMBERS 2022 - 2023
PRESIDENT Jesse Jacobson IMMEDIATE PAST PRESIDENT Tom Archambault SECRETARY-TREASURER Mike McLynn COLLISION DIVISION DIRECTOR Travis Doyle
COLLISION DIVISION DIRECTOR’S MESSAGE..................................4 Be an Industry Role Model by Travis Doyle, AASP-MN Collision Division Director LEGISLATIVE UPDATE.....................................................................5 2022 Legislative Session Nearing Completion by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists LOCAL NEWS..................................................................................6 NATIONAL NEWS ............................................................................8 AROUND THE INDUSTRY ................................................................10 COVER STORY ................................................................................14 Does the Consumer Know What You’re Worth? by Chasidy Rae Sisk & Alana Quartuccio Bonillo
MECHANICAL DIVISION DIRECTOR Jeremy Nordgren
D.E.G. ESTIMATING TIPS .................................................................18
ASSOCIATE DIVISION DIRECTOR Paul Yager
COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S).......................................................................................20 Can’t You See? by Janet L. Keyes, CIH and Carol A. Keyes, CSP
COLLISION SEATS Lee Schlosser Aaron Swanson MECHANICAL SEAT Dan Gleason
STAFF
CASH IN ON YOUR MEMBER BENEFITS! .........................................22 AASP-MN and CHESS Team Up to Offer Members Safety Compliance Services
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
UPCOMING EVENTS
June 15 27th Annual AASP-MN Golf Outing Majestic Oaks Golf Club Ham Lake, MN ADVERTISERS’ INDEX A-Con Recycling........................................... 10
Proven Force........................................................ OBC
EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com
Aramark.......................................................... 16
Reliable Automotive Equipment..............12-13
MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com
Dentsmart....................................................... 8
Rosedale Chevrolet...................................... 17
Inver Grove Honda/Inver Grove Toyota.... 5
Sherwin Williams........................................... IFC
Jack McClard................................................. 21
Spanesi............................................................ 23
Keystone......................................................... 18
Straight & Square....................................... 4, 19
Maplewood Toyota...................................... 19
Thomas Greco Publishing.......................... 16
Mopar Group ................................................ 9
Toyota Group................................................ 21
OFFICE MANAGER Donna Greco | donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com www.grecopublishing.com
Morrie’s .......................................................... 17
AASP-MN News
June 2022 | 3
COLLISION DIVISION DIRECTOR'S MESSAGE
Be an Industry Role Model By Travis Doyle AASP-MN Collision Division Director
I am Travis Doyle, the Alliance’s Collision Division Director for 2022. I was born in Duluth and graduated from East High School. I then went on to college at the University of Minnesota in Duluth, where I obtained a degree in organizational management. During my sophomore year of college, I became involved in my parents’ business, Arrowhead Auto Body in Hermantown. My first position was in the paint department, prepping and masking cars. Throughout the next year, I transitioned from detailing cars to parts management, and finally, to body technician, a position I held for two years. I learned a lot very fast and fell in love with the industry, and after graduating college, I started training as an estimator to learn the business side of the company. I am now a co-owner of Arrowhead Auto Body. Since becoming a co-owner, we have added a second location in Superior, WI. I have been involved in AASP-MN for five years now, serving on the Collision Advisory Committee, Legacy Committee and the Board of Directors. I spend each day excited about the automotive industry and the opportunities for everyone who is involved. It’s created great careers for technicians, painters, estimators, service writers, parts managers and
detailers. We, as industry professionals, need to tell our stories about how we got started in the industry to the younger generations, so they can get involved and have rewarding careers. It is important for us to reach out to high school and college students to inform them of the opportunities. We need to get them involved quickly and get them trained. It has been a wild last couple of years. Lots of things have changed. Our skilled workforce is getting older, and cars are getting more advanced. The businesses who can attract, train and maintain their employees are the ones who will have their doors open for generations to come. The Alliance has a membership that can do this. We are the leaders in the automotive repair industry in Minnesota. Thank you to the entire membership for supporting the Alliance and its mission.
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AASP-MN News
LEGISLATIVE UPDATE
2022 Legislative Session Nearing Completion In a year where every representative, senator, and Governor are up for reelection in the fall, it is no surprise that there has been little bipartisanship at the legislature. To that end, issues that were initially thought to have support across party lines and be urgent enough to be resolved in the first weeks of session remained in limbo until the final weeks of session. Most notably, a long-overdue deal to refill the unemployment insurance trust fund and provide frontline worker bonus payments was reached by party leaders and the Governor. A more expansive list of eligible workers than previously agreed to will receive one-time bonus checks of up to $750, with $500 million now set aside for bonus checks, a DFL House priority. In return, the unemployment insurance trust fund will be replenished to pre-pandemic levels of $2.7 billion, a Senate Republican priority. It’s unclear whether this bipartisan goodwill will continue as leaders determine what to do with the remaining budget surplus of approximately $7 billion. Senate Republicans favor a substantial tax relief bill, while House Republicans want supplemental spending bills. With the legislative session required to end on May 23, these last few weeks will be telling. The Salvage Title Task Force provisions that AASPMN advocated for - which preserve the definition of “high
by Sam Richie & Shannon K. Mitchell,
value” and “late model” AASP-MN Lobbyists - are included in both the Senate and House Transportation Omnibus bills. The next stop for both bills is a joint conference committee with Senate and House members. Additionally, AASP-MN members will be interested in a tax provision that is in the Senate Tax bill. This provision would permanently phase out the state’s commercialindustrial property taxes for businesses, including auto repair shops. Currently, this provision is not in the House Tax bill and is unlikely to be included in a final package, but it is currently in play and has generated much discussion at the Capitol. We will follow the conference committee and update members if this emerges and is sent to the Governor to be signed into law. Lastly, as previously mentioned, AASP-MN sponsored a bill that would require insurance providers to approve or deny claims within three days of submission. AASPMN has secured lead authors who will continue to serve as strong advocates. This lays the foundation for an extended advocacy effort that will run into next year. Over the summer, we will do more issue-campaign planning and potentially look for legislation to address short-pay and prevailing-rate issues that are becoming increasingly problematic for members.
AASP-MN News
June 2022 | 5
LOCAL NEWS AASP-MN Awards Scholarships to Automotive Students
The Alliance is pleased to announce it has awarded scholarships totaling $20,000 to help automotive service and collision repair students pay for tuition or tools during the 2022-23 school year. The scholarships are in the amounts of $500 or $1,500 and are made possible by generous donations from the Minnesota State I-CAR Committee and Bill Smith Fund, as well as proceeds from AASP-MN’s Annual Race for Automotive Education fundraiser, which was held earlier this year. Thirty-eight college and high school students from 12 schools submitted scholarship applications. Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations. The recipients are: Arieonna Blount , South Central College, North Mankato – Automotive Service Technology Joseph Bonnette , Century College, White Bear Lake – Automotive Service Technology Tehron Buffman , St. Cloud Technical & Community College, St. Cloud – Auto Body Collision Repair Connor Haag , Rochester Community & Technical College, Rochester – Automotive Service Technology Thomas Huso , Dunwoody College of Technology, Minneapolis – Auto Body Collision Repair Brandon McKenzie , Century College, h W ite e B ar a L ke – Automotive Service Technology Zach McLaughlin , Dakota County Technical College, Rosemount – Automotive Service Technology Caleb Mead , South Central College, North Mankato – Automotive Service Technology Michael Ni , St. Paul College, St. Paul – Automotive Service Technology Adam Oberg , Pine Technical College, Pine City – Automotive Service Technology Nicholas Perzichilli , Century College, h W ite e B ar a L ke – Automotive Service Technology Jacob Raak , Ridgewater College, Willmar – Auto Body Collision Repair Barron Schneider , Ridgewater College, Willmar – Auto Body Collision Repair Cody Sievert , Ridgewater College, Willmar – Auto Body Collision Repair Taliesin Sutton , Hennepin Technical College, Eden Prairie – Automotive Service Technology Matthew Wallace , Century College, White Bear Lake – Automotive Service Technology Congratulations to all of this year’s recipients!
6 | June 2022
AASP-MN Values
Appreciation: Each member is important. e W value members’ time, commitment, and contributions – whether large or small – for the benefit of all. Collaboration: e W work with one another for the betterment of the automotive industry, recognizing that our collective ideas and experiences are stronger than any one individual’s. Commitment: e W believe in our mission. e W stand with and support the industry and our members by providing resources to help them achieve their goals and long-term sustainability. Connection: e W come together around a common purpose while welcoming and accepting different viewpoints. e W value everyone for who they are and what they bring to the organization. Focus: e W prioritize our work. e W do not allow daily distractions and short-term challenges to take our vision away from our objectives and long-term goals. Integrity: e W do the right thing for the right reason. e W are respectful, honest and transparent and can be counted on to do what we say we are going to do. Professionalism: e W strive for excellence in all that we do. e W apply best practices, meet high standards and take pride in our work. Attention AASP-MN Members! Complete Your Member Profile
The AASP-MN website was designed to help you seek out other AASP-MN members when looking for services, tools/equipment or general advice and has search capabilities to facilitate those connections. However, in order for the search results to include information about your shop, you must complete your member profile on the website. To do that, go to aaspmn.org and click on the “Members Only” button in the upper right corner. You will be prompted for a username and password. (If you don’t know this information, contact the AASP-MN office.) Once you are logged into the site, click on “Members Only” on the navigation bar. A drop-down menu will appear. The first option on that menu is “My Profile.” Click on the “My Profile” option to update your company profile. Once you’ve completed your profile, hit the save button at the bottom of the page. Please take the time to check out all of the great information and resources on the AASP-MN website, including:
AASP-MN News
Information about: Association news Member benefit programs The Get to Know Your Neighborhood Auto Repair Pro campaign Current and past legislative activities & find your legislators Industry training and upcoming events
In Memory of Scott
After a long and courageous battle with brain cancer, Scott McClure of St. Paul Automotive died peacefully at home on May 13, 2022, at the age of 54. Scott began his career in the automotive service industry at the age of 14 sweeping floors at what was then Olson’s Service and he Member shops, tools and equipment: kept going from there. In 1998, he Search our database to find a member shop in your purchased Olson’s Service at the age area, see what diagnostic or other equipment they own, what repair information they subscribe to, which of 30, and renamed it St. Paul Automotive. Scott served on the association’s Mechanical management system they use and more! Our extensive database was designed to help members connect with Advisory Committee from 2007 – 2015 and was the – and be a resource to – other members. So be sure to Division Director in 2012. He also served on the AASP-MN Board of Directors from 2011 – 2014. login and complete your member profile! Scott will be deeply missed by his wife, Deb, children, Michael and Danielle, and many other family and friends. Resources/links: A funeral service is planned for June 9, but detailed Regulation of Claims Practices & information was not available at the time of printing this Prohibition on Insurers Statutes issue of AASP-MN News. Truth in Repairs Act Insurer Unfair Claims Practices Report MN Motor eV hicle Damage Disclosure & Reporting Requirements Thank You Year-Long Sponsors P-Pages, DEG & other estimating resources Platinum Sponsors Axalta Coating Systems OEM service information LKQ Minnesota Colonial Life MPCA Fact Sheets and other regulatory Lube-Tech Dentsmart PDR compliance information Enterprise Rent-a-Car Gold Sponsors AASP National Auto Value /APH CBIZ Elite Worldwide FinishMaster United Fire Group
Sample documents: Complaint Letter to Department of Commerce Loaner Car Agreement Repair Authorization form Notice of Hazardous Defects Assignment of Insurance Proceeds Sheriff’s sale instructions and documents Consumer info: Find a Shop Auto Insurance Claims & Claimants’ Rights “Nuts & Bolts” brochure Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) Motor eV hicle Service Contracts: FTC, MN Attorney General and Consumer Reports FTC Consumer Alerts on auto warranties and warranty scams Other: Automotive career and scholarship info, including links to state college automotive programs AASP-MN News Magazine – Check out the current or past issues of the Association’s monthly magazine, AASP-MN News And, much more!
Silver Sponsors 3M Automotive Aftermarket aaa Auto Parts Aramark
Heartman Insurance NCS/Single Source O’Reilly Auto Parts PAM’s Auto PPG Sherwin-Williams Shop Monkey Suburban Chevrolet Bronze Sponsor C.H.E.S.S
Minnesota Careers in Auto Repair & Service (MNCARS) MNCARS is a non-profit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state’s college-level automotive service and collision repair programs and, ultimately, into industry workplaces.
Take advantage of the resources in the MotorMouth toolbox at carcareers.org/ motor-mouth/. Get out and get active in your local community promoting industry careers!
AASP-MN News
June 2022 | 7
NATIONAL NEWS
www.langmarketing.com
Service Bays Soar in Product & Labor Volume Car and light truck Do-It-For-Me (DIFM) product and labor (purchased service) volume has grown significantly over the past five years, despite the onslaught of COVID19, which cut deeply into 2020 DIFM volume and slashed the number of repair outlets. Nevertheless, the reduced population of light vehicle repair outlets has been able to keep pace with the rising DIFM repair volume. Service bay average repair volume has climbed faster than total DIFM product and service volume, with annual repair sales (products and labor) per bay surging by more than $20,000 between 2016 and 2021, at user-price. Growing DIFM Product Sales Recovering from the impact of COVID-19, car and light truck 2021 DIFM product and labor volume topped $173 billion at user-price, up more than $16 billion from 2016. As Do-It-For-Me (DIFM) product and labor sales rose at a 2.0 percent average annual pace over these five years, the population of car and light truck service bays in the U.S. fell sharply. 45,000 Fewer Service Bay At mid-year 2021, there were approximately 45,000 fewer light vehicle service bays nationwide than five years earlier. This bay reduction ran contrary to the rise of vehicles in operation (VIO). As the number of light vehicle service bays in the U.S. fell between 2016 and 2021, the VIO increased by nearly seven percent, and DIFM product and labor sales climbed by over 10 percent, at user-price. More Vehicles Per Bay The average number of cars and light trucks per service bay in the U.S. continues to increase, reflecting a shrinking
8 | June 2022
bay population that is challenged by the increasing number of cars and light trucks on U.S. roads. The growing vehicle population and expanding DIFM sales should have triggered a surge in the nation’s bay population. However, the opposite has occurred. As the car and light truck population increased and DIFM sales climbed between 2016 and 2021, the light vehicle service bay population fell, hit hard by the pandemic. At mid-year 2021, the number of vehicles per service bay was nearly 10 percent higher than five years earlier. This trend of more vehicles per service bay in the U.S. will continue for the foreseeable future. DIFM Market Solution Service bay average repair volume has climbed faster than total DIFM product and service volume, with annual repair sales (products and labor) per bay surging by more than $20,000 between 2016 and 2021, at user-price. The solution to this DIFM market challenge (fewer service bays to handle greater repair volume) has been to increase product and service sales per bay. Increased Service Bay Volume Car and light truck bays averaged nearly $155,000 in annual product and service sales at user-price during 2021. Despite the shrinking number of service bays across the U.S., the annual product and labor sales of the average car and light truck bay rose by 15 percent between 2016 and 2021, half again more than the total DIFM market. Different Bay Performance by Type of Outlet While the average service bay increased its product and service volume by 15 percent between 2016 and 2021, there were significant differences in the performance of bays by type of outlet. Foreign Specialists led the way as their annual product and labor volume per bay soared by more than 25 percent between 2016 and 2021. Repair Specialists and Service
AASP-MN News
Stations & Garages also reported strong DIFM volume growth per bay over these five years. Greater Bay Productivity This growing production of service bays is testimony to the investments that outlets have made in technician training, tools & equipment, software and other resources to increase output per bay. Together, the continued growth of DIFM volume and the decline of the bay population will make it more necessary than ever for outlets to make the investments required to increase bay productivity. Opportunities for Productivity Providers The growing necessity of repair outlets to increase their productivity (given their declining number and the growing repair market volume) provides great opportunities for companies that can develop and supply the means to improve productivity through training, tools and equipment, various types of software and other resources. The growing numbers of electronic vehicles on the road will provide an additional impetus for even more training, tools and equipment, software and resources to increase bay productivity. Six Major Takeaways: • The service bay population fell by 45,000 between 2016 and 2021 as the number of cars and light trucks on the road increased by nearly seven percent and
total DIFM sales climbed by over $16 billion. • The number of cars and light trucks per service bay in the U.S. continued to soar between 2016 and 2021. This has provided the impetus for the average product and service volume per service bay to climb at a 50 percent faster pace than the total DIFM market growth between 2016 and 2021. • The average car and light truck service bay in the U.S. rang up over $20,000 more in annual product sales between 2016 and 2021. There are significant differences in the rates of annual product growth per service bay among the major groups of repair outlets. • Foreign Specialists achieved the greatest increase in annual volume per bay between 2016 and 2021, followed by Repair Specialists. Together, these two outlet groups expanded their product and service sales per bay by an average of approximately 23 percent during these years. • This continued growth in DIFM volume and an expected decline in the bay population will make it more necessary than ever for outlets to invest in training, tools and equipment, software and other resources to maximize product per bay. • The current DIFM market provides great opportunities for companies to develop and supply training, tools and equipment, software and resources to increase the productivity of outlets and enable them to meet the challenge of repairing the growing number of vehicles per service bay across the U.S.
AASP-MN News
June 2022 | 9
AROUND THE INDUSTRY
TGP Senior Vice President Alicia Figurelli Honored Among 2022 Most Influential Women at Women's Industry Network Conference Gala The Women’s Industry Network (WIN®) celebrated Matthew, who are live-streaming its 2022 Most Influential Women (MIWs) at the WIN Gala this from the little league field on May 3 in Greenville, SC. Thomas Greco Publishing right now. Thank you all so much!” (TGP) Senior Vice President Alicia Figurelli took her place In addition to Figurelli, this among the seven women being honored this year for her year’s honorees include Allison contributions to the collision repair industry. Boever (Repairify), Shirin Hezar “The WIN Gala is a celebration of our organization, (Caliber Collision), Jennifer its mission, accomplishments and our future,” WIN Hubbard (CCC), Samantha Kita Conference Emcee Chelley Canales announced as she (Gerber), Debbie Menz (Axalta) welcomed attendees. “The MIW award recognizes and Micki Woods (Micki Woods outstanding women in our industry who may have a Marketing Genius for Body long list of accomplishments or just be starting out with Shops). aspirations of making a difference in the future of our The MIW awards honor the women whose career industry. We need all of these women to continue our achievements have enhanced the collision repair industry. forward trajectory in the auto collision industry and to Since the MIW awards were established in 1999, over 100 pave the way for the next generation.” inspiring women have been recognized for their visionary WIN’s 2022 MIW awards were presented by 2019 leadership and commitment to excellence. For more MIW Kathy Mello and 2020 MIW Kristle Bollans. information about WIN or the Most Influential Women “Alicia Figurelli has risen from writer to editor to vice award, visit womensindustrynetwork.com. president in her 18 years at Thomas Greco Publishing,” Thomas Greco Publishing represents a variety Bollans said. “Alicia has spent the last two decades of automotive repair trade associations including the going above and beyond in her duties for the Alliance of Alliance of Automotive Service Providers of Minnesota Automotive Service Providers of New Jersey (AASP/NJ). (AASP-MN), the Alliance of Automotive Service Providers She has been a crucial part of the association’s success of New Jersey (AASP/NJ), the Alliance of Automotive and has also spent time working on projects for SCRS, Service Providers of Massachusetts (AASP/MA), the CIC and many other associations. Alicia has become the Washington Metropolitan Auto Body Association second woman ever inducted into the AASP/NJ Hall of (WMABA) and the Auto Body Association of Texas Fame in October 2021, and she has also taken many roles (ABAT). To learn more about Thomas Greco Publishing, in her local community, including West Caldwell Little visit grecopublishing.com. League and PTO. Please join us in congratulating Alicia!” “Thank you all so much, and congratulations to all of the other incredible recipients,” Figurelli expressed her gratitude at being named a 2022 MIW. “Women have come so far in this industry – from starting out 18 years ago and being asked whose girlfriend or daughter I was to now being taken seriously is a wonderful change, and it’s only going to continue to go from there for all of us in the industry. A-Con Recycling can help! Give us a call “This is my first WIN Conference, and it’s going to today at 651-252-6000 for more details We PICKUP & RECYCLE your bumpers, and scheduling. be tough to beat because I received this award,” she keeping plastic out of landfills and improving shopplastic production! WHAT WE DO: Recycle bumpers quipped. “I walked in here knowing literally two people, and keep them out of landfills. and I’m leaving with 100-plus friends. Thank you to the Contact usRecondition, today for WHAT WE DON’T DO: fix or MIW Committee and the entire WIN network; you are all & scheduling! selldetails bumper cores for repair. 651-252-6000 amazing. Thank you to our clients, the incredible crew fixit@aconwheel.com at TGP, and of course my husband, Steve, and son,
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AASP-MN News
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AASP-MN News
June 2022 | 11
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COVER STORY Automotive and collision repair shops don’t have it easy. Keeping up with changing technology, trying to get through the volume of work with limited staff and contending with insurers consume most days, but those challenges are worth it for many repairers who take pride in what they do: Protect consumers by safely and properly restoring their vehicles to pre-accident condition. Your customers appreciate what you do, especially when you take the time to educate them, but do they really understand all that’s involved with repairing a vehicle and running a shop? Do they know how heavily shops invest their time, energy and funds into training, tools and equipment? Are they capable of “getting it?” Do they even care? Unfortunately, most consumers don’t really understand their vehicles and the complexity of repairing them, making it critical for mechanical and collision shops to educate their customers and involve them in the repair process so they have a better comprehension of what’s happening with their vehicle. This becomes even more imperative on the collision side where customers have even less experience and knowledge of the process, but many auto body shops try to protect consumers by insulating them from insurer negotiations, leaving them even more confused. Acting as a partner to the consumer to help them navigate the insurance process creates a more loyal customer…and it also helps the shop collect full payment on the work performed by expanding the customer’s knowledge and converting them into an advocate for your business. Because this is such an important concept, AASP-MN
Contemplating the amount of training necessary for someone to become a qualified technician, consumers’ guesses ranged from “40 hours” to seven years. “I think at least 40 hours total would be necessary to learn the bare minimum skills necessary and start working on cars,” suggested a warehouse coordinator from Bloomington. A Savage-based construction worker guessed six months, followed by on-the-job training, while a household maintenance technician from St. Paul proposed that it could take anywhere from six months to two years “depending on the motivation of the person learning the trade.” Half of our consumers indicated that two years seemed like a reasonable timeframe for learning the skills needed to repair vehicles, and most of them also recognized the need for employers to offer additional training in the shop. “About two years to learn almost everything, but they’re also going to get a lot of field experience obviously,” said a Canby-based caretaker who also noted, “It’s really not extremely difficult to learn how to work on your own vehicle; YouTube offers a lot of do-it-yourself training videos.” (Oh no!) “They probably go to school for a year or two, but they’d also need to learn some of the most complicated aspects while on the job,” a dental hygienist from Apple Valley reckoned. “It has to take years for them to get really good at it, so a talented technician could become proficient in 10 years or so.” A college student residing in Marshall estimated that it would take five years or less, “depending on their upbringing
DOES THE CONSUMER KNOW Do customers really understand what's involved
News decided to try our hand at “educating the consumer” to find out if they actually know what you’re worth. Our 10 consumers reside in areas all over Minnesota and surrounding states, and they represent various age groups and careers. All respondents were unaffiliated and unfamiliar with the collision repair industry; most indicated that their knowledge was limited to one or two interactions they’d previously had with body shops after collisions. Many struggled to understand the difference between automotive and collision repair, despite repeated clarifications and explanations. We began by assessing their current knowledge on three topics: the length of time needed to learn the trade, the amount shops invest in tools, equipment and training and the all-important question of Labor Rate. After obtaining that feedback, we provided a two-minute lesson on the industry and asked them to re-evaluate their responses. Let’s find out what they had to say! “I don’t have a clue.” “I’ve never really considered it before.” “A lot?” It wasn’t exactly shocking to hear that few people have contemplated what goes into repairing their vehicles…or to the shops and technicians who ensure their vehicles’ safety after an accident. Yet, that was the only similarity expressed by participants – identifying what the average consumer thinks they know about this industry offered diverse responses.
14 | June 2022
and whether they grew up around cars,” and a Canby-based college professor offered a similar guess of five to seven years. Most consumers acknowledged the need for shops to invest annually in tools, equipment and training, but it was evident that few understood what is required to run a collision repair facility. The concept of needing specialized equipment to repair specific makes and models took many of them by surprise. Conjectures ran the gamut from “a couple thousand” to $500,000. “Tools and equipment are expensive, but those wouldn’t be annual charges – once you have them, they last forever,” the dental hygienist opined. “They may occasionally need some specialized equipment, and tools probably cost around $500 each year to replace what employees break. Add in training, and they’re probably spending a couple thousand each year on tools, equipment and training.” A Plymouth-based front desk clerk in the hospitality industry considered $15,000 to be sufficient for equipping and training shop technicians, but the majority of consumers believed that these expenses would amount to closer to $50,000 per annum. “Shops would need to spend at least $20,000 annually on tools and equipment,” an internet technician from Rochester believed. “If they actively hire new employees, they’d invest another $20,000 or more in training, but if their employees are tenured, they could likely get away with just
AASP-MN News
by Chasidy Rae Sisk & Alana Quartuccio Bonillo
$5,000 per year for training expenses.” The caretaker and construction worker both calculated that spending $50,000 each year seemed reasonable, and the college professor predicted a range of $50,000$75,000 since “tools and equipment cost a lot; that stuff is not inexpensive!” Offering a “really high” conjecture of $120,000, an IT professional from Plymouth observed, “Once you buy your tools and equipment, you’re probably not going to have to buy those items again unless you just need a new one. I’d think training is the highest expense each year since they’re doing a lot of really high-tech stuff with cars now.” The college student provided the highest guess of $500,000 for the cost of tools, training and equipment. Questions about the Labor Rate that shops should charge elicited conjectures ranging from $25 to as high as $200, with an average of approximately $75 per hour. The front desk clerk was one of two consumers who supported the belief that a $25 Labor Rate would cover a shop’s expenses and labor. “Body shops should charge at least $25 hourly,” stated the warehouse coordinator. He added, “They have to completely take the car apart, make the necessary repairs and then reapply those parts onto the vehicle. That seems like a lot of work.” “The job requires a lot of prep work, right?” The construction worker sought to confirm his belief before voicing the opinion that “roughly $30 an hour seems fair and not too high for the shop to charge and still be able to pay their technician.”
The highest guess of $150-200 per hour was offered by the IT professional. After consumers provided their initial responses, they were given a short “training session” on collision repair: Our vehicles are typically the second largest investment we make, and these days, cars are essentially supercomputers on wheels that can kill the driver, occupants and others on the road if repaired improperly. In addition to at least two years of formal education, technicians participate in ongoing training to keep up with advancing technology and manufacturer requirements, and they provide their own personal tools which can easily accumulate in excess of $100,000. Changing technology also requires shops to constantly invest in tools and equipment, plus shops that participate in various OEMcertification programs may be required to purchase specific items to repair that manufacturer’s vehicles. Typical startup costs for a small shop run around half a million dollars, and when we talk about Labor Rate, it’s important to remember that this is a business with overhead expenses such as rent, utilities, insurance, taxes…in addition to employee wages and benefits. As a point of comparison, the national average for lawn mower repair is $90/hour, and auto repair rates on the mechanical side typically range from $85-130. How did that “education” influence consumers’ initial thoughts? Well, the household maintenance technician held fast to his belief that shops should charge by the job, and
WHAT YOU’RE WORTH? in repairing a vehicle and running a shop?
“Don’t they get paid a lot?” asked the college student. “If the guy repairing the car makes $20-25, the shop probably charges $50-75.” The caretaker took a different stance: “It depends on whether the repairer has a degree and how much prior experience they have. They should definitely have a base salary of $15 an hour, and if the shop offers any kind of bonuses or incentives (which I think they should), they’d need to include that in their charges. It also depends on what they’re doing for the vehicle. I know some shops likely charge $200 an hour, but that’s outrageous. I think $50-60 is reasonable and allows them to fairly pay their workers as well.” “Shops should charge by the job, not by the hour,” the household maintenance technician proffered, and the dental hygienist estimated that “$70 should cover it all.” “Around $100 an hour leaves enough room for the shop to pay a good rate to the technician and still make decent money for the business,” the internet technician expressed. “I know nothing about cars or shops…I always put complete faith in the people who work on my cars,” admitted the college professor before posing an estimate of $100-150 per hour. “I’d assume they’d charge different rates depending on the tenure the employee has and the skill level needed to effect the repair. They may offer lower rates of $75 for basic stuff that an apprentice can do, but I’d imagine that more labor-intensive repairs should cost more money.”
the internet technician insisted he was “pretty close and reasonable at $100, but I assume other people tend to think shops should charge $50 an hour and no one gets to eat?” When he learned that many shops only collect $50-60 an hour, his exasperation was obvious: “How’s that supposed to work?! Body shops have to pay more than $10 an hour for the actual labor, plus they have a ton of overhead.” Other consumers acknowledged that their original guesses were insufficient, but several hesitated to offer a new number. “I hadn’t considered all of that,” confessed the dental hygienist. “It always seems so expensive when I’m looking at a bill, but I guess it makes sense. So, they should definitely raise their labor rates…but maybe stop jacking up the price of parts so much.” “Thinking about how much they invest sounds like it’d be a struggle just to break even, and any business needs to do more than just break even,” the caretaker commiserated. “I was not aware of how much they’re constantly spending; it’s ridiculous that they have so many expenses. They should definitely be getting more.” “Shops should charge more since they’re being heavily impacted with all the new technology which they need to be educated on,” agreed the warehouse coordinator. “They have to spend that time and money learning to repair
AASP-MN News
continued on pg. 16
June 2022 | 15
COVER STORY continued from pg. 15 vehicles the right way to ensure that the technicians are capable of doing their jobs correctly.” “A half a million for tools? Wow!” exclaimed the front desk clerk. “I didn’t think about it being our second largest investment either. Taking all of that into consideration, it changes my opinion on technicians and body shops. I really respect them for what they do.” Offering a revised estimate of $100 an hour as a reasonable Labor Rate, the construction worker recognized that he was “only looking at the labor aspect, but now that I realize how much they have to put out to even open their doors, I definitely think a higher number is more realistic. Understanding their investment will probably make me less annoyed the next time I get a bill.” He was not surprised in the least to learn that insurers often limit reimbursement rates to body shops, but he pondered, “If the shop charges $100 an hour and the insurer only pays $50, do I get charged the rest? Laws need to make sure insurance companies are liable for a certain amount or specific things. Insurance policies cost a lot, but though we rarely need them, they still don’t want to pay for the repair…that should be illegal.” “Lawn mower repair costs how much?!” the college student gasped. “Shops should definitely be charging closer to $150 then.” “With all that overhead, I’d say $150 at a minimum,” the professor concurred. “That’s an insane amount of investment, and the fact that it’s an ongoing investment to
keep up with changing technology helps me understand why shops always seem to charge more than my insurer’s initial estimate.” Although the IT professional originally guessed $150200, he updated his estimate to $250-300 after learning more about the industry. “I’d say that seems like a fair ballpark for them to recoup their investments.” While it’s quite clear that some people truly do recognize the value of what body shops do, few can put an appropriate figure next to it. Speaking to consumers of various professions played a role in our research as many used some of their own professional knowledge as a point of comparison, yet most didn’t even come close to recognizing the amount of training and equipment needed, let alone how much cost is involved. So, what does this mean for repairers? There is certainly a lot of work to do in and out of the shop to educate the consumer. Education really is key. The more collision repairers educate their consumers, the better they can understand what is happening when they take their vehicle in for repairs so they can fight their insurers for proper compensation. Helping them “get it” can help you collect proper compensation. How are Minnesota shops instilling this knowledge in customers? Stay tuned to next month’s AASP-MN News for insights into some of the best ways to better educate consumers.
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June 2022 | 17
ESTIMATING TIPS CCC/MOTOR: Ford Impact Bar Modifications– DEG Inquiry 19868 identifies feedback on not included operations for drilling holes or performing additional modifications to the replacement impact bar. • “Any additional modifications to the Impact Bar are not included.” • An “add if required” has been added in the headnotes that states, "R&R impact bar, add to drill holes, 0.7" with a footnote that states, "LABOR: time is to drill mounting holes if not supplied by the OE." Note: Consumables used for fabricating and/or modifying parts (i.e. drill bits, shims, grinding wheels etc.) are NOT INCLUDED in published labor times. CCC and Mitchell: Refinishing Roof with No Breakpoint– CCC and Mitchell have provided feedback to inquiries regarding masking operations when refinishing a roof panel without a breakpoint. Additional information about extending clear coat can be watched in this SCRS Quick Tip Video - youtube.com/watch?v=zCGc82zAvos. DEG Inquiry 20058 for CCC, states, “MOTOR feedback: Perimeter masking is included. Rolled tape edge is not included.” DEG Inquiry 20057 for Mitchell states, “Mitchell considers the included "Perimeter mask" of the roof to also include to perform "Rolled Tape Edge" type masking if the repairer is electing to perform refinish to the roof panel only and not extending the refinish to the adjacent panels.”
It’s important to refer to refinish manufacturers’ repair procedures for an accepted warranty repair on panels with no breakpoint. Visit scrs.com/refinish-manufacturertechnical-information/ for the SCRS Refinish Manufacturer technical information page. Mitchell: Lamp Aiming NOT INCLUDED Operations– “Currently Mitchell does not create procedural page information for Lamp Aiming. Specific included and notincluded operations are not defined.” DEG Inquiry 20081: • “Variables identified in the service procedure such as the following have not been factored into the published allowance: • Replace faulty glass and mirrors and light bulbs. • Vehicle with full fuel tank or appropriate additional weight in trunk.” DEG Inquiry 19093: • “Variables identified in the service procedure such as the following have not been factored into the published allowance: • Filling or adding fuel to tank. • Someone seated in the driver's seat during adjustments. • Removal and installation of components for access-unless identified in a footnote.” If end users have questions regarding what is or is not included in aiming lights when referencing OEM repair procedures, submit a degweb.org inquiry.
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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June 2022 | 19
COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.)
Can’t You See? By Janet L. Keyes, CIH and Carol A. Keyes, CSP
A few years ago, an employee was applying some graphics to a truck. The graphic applicator fell off the truck, hitting a can of lacquer thinner. The thinner splashed into the employee’s eyes. The employee was admitted to the hospital for that injury. The employer was fined $7,650. The employer contested the citation and lost, paying the full penalty amount. How many pairs of safety glasses could you buy for the cost of that injury? Keep in mind that the $7,650 paid to OSHA wasn’t the only expense. The employer’s workers’ comp premium went up for the next three years. The employee lost productive work time. The employer had to spend time dealing with the OSHA inspection and the citations. We don’t know if lawyers’ fees need to be added to that total. Maybe you have extra cash to hand over to regulators and insurers. Maybe you have lots of free time and enjoy dealing with paperwork. Maybe you have more employees than you need. If so, this article may not be for you. But if you’re short on staff, don’t want to pay out more than necessary and want to avoid the paperwork jungle, providing appropriate eye protection to employees and requiring that everyone in the shop wear them seems a cost worth paying. Appropriate eye protection starts with safety glasses, but it doesn’t end there. Ordinary wraparound polycarbonate safety glasses, the type you can buy at Home Depot, cost $8. They’ll protect employees from losing an eye if a grinder explodes or a metal shard goes flying. Safety glasses are really good at protecting eyes from impact hazards, such as a flying piece of metal. If they fit closely to the user’s face, they’ll keep a lot of dust out and will provide some protection against chemical splashes. But they won’t keep out all dust and liquids. And they won’t provide any protection for the rest of the face.
What's Wrong With This Photo?
The eyewash is blocked, and it is missing a cover on one of the nozzles. 20 | June 2022
For dusty work, you can get foam-lined safety glasses for about the same price as plain ones. Grinding? Worried about things striking the face? Add a face shield. Concerned about a splash from a chemical that could blind? Opt for chemical safety goggles and a face shield or a combined face shield/goggles. Don’t think you need that heavy-duty protection? Go look at your detail chemicals. Which are labeled as corrosive? If there is any risk of those splashing onto an employee’s face, some pretty serious eye and face protection is needed. Corrosives can blind employees. And burns from alkaline materials (such as heavy-duty cleaners) or hydrofluoric acid, an ingredient in wheel cleaner, may not be felt immediately. Wheel cleaner contains only three to five percent hydrofluoric acid but burns from concentrations that low can take hours to show up. Wearing goggles is an easy preventive measure. We hope those who weld in your shop wear appropriate welding helmets. What about the workers next to the welder? Or the office person walking through the shop? They’re at risk of an eye burn from welding’s ultraviolet radiation. If you’ve never experienced welder’s flash, ask those who weld what it feels like. The consistent description: ground glass or burning sand in the eye, with the pain appearing hours after exposure. While welders are at most risk, the burn can develop after only a brief unprotected look. That doesn’t mean everyone needs to wear welding helmets. Ordinary un-tinted safety glasses made of polycarbonate will protect those in the area – another argument for requiring safety glasses for everyone in the shop. Safety glasses alone don’t provide adequate protection for the person doing the welding. They don’t protect the rest of the face from ultraviolet radiation or from sparks. Nor do they block the intense visible light from welding. But after experiencing welder’s flash once or twice, most welders are careful about wearing the right eye protection, a welding helmet. Does anyone require prescription lenses? Prescription glasses can be safety glasses – but don’t assume that they are. If employees need the prescription to see, you still want to protect their eyes. You could pay for prescription safety glasses. You could pay for the safety part of the glasses. You could offer them safety glasses that fit over their prescription lenses, but that’s usually awkward and uncomfortable. For some people, safety glasses with reading glass inserts might be suitable. We used to feel some sympathy for people who claimed that safety glasses were uncomfortable or didn’t fit well or disturbed their vision. We don’t buy that argument anymore. Safety glasses have improved in comfort, in style, in fit and in durability. They can have anti-scratch and anti-fog coatings. You can get them in clear, tinted or even mirrored lenses. There are ones for small faces and ones for big faces. And if you want to be fashion-conscious, you can even get them with frames to match nearly any outfit you’ll wear. Even the most expensive pair of safety glasses is a fraction of the cost of an injury.
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CASH IN ON YOUR MEMBERSHIP BENEFITS!
AASP-MN and CHESS Team Up to Offer Members Safety Compliance Services Complete Health, Environmental & Safety Services, Inc. (CHESS) offers AASP-MN members a 20 percent discount on the following services: Right to Know (RTK)/Hazard Communication You must train employees before they start work and annually. You must have a written program. CHESS' Right to Know Written Program and Training Guide is customized for your facility, whether you offer collision or mechanical repair. The written program and training guide is available exclusively to AASP-MN members for $300. Safety Data Sheet Management As part of the Right to Know/Hazard Communication OSHA law, you must provide your employees access to Safety Data Sheets (SDS) for the products in your shop. CHESS's SDSLinks, an online SDS management tool, makes them easy to find. CHESS also provides support 24/7 if you cannot locate one. SDSLinks is available
exclusively to AASP-MN members for $300 per year. Safety Reminder Posters OSHA has some regulations, such as walking and working surfaces and ladder use that require training. Keeping safety in front of employees on a regular basis is one way to help reduce injuries. CHESS will email you a poster on a different topic each month relating to safety issues found in your shop. You can post it or review it with employees in a shop meeting. The safety reminder posters program is available exclusively to AASP-MN members for $240 per year. All of these services can be bundled for a fee of $800, with annual renewal of the SDSLinks and posters for $525. In addition, CHESS offers up to one hour of free phone consultation to any AASP-MN member with safety or environmental questions. For more information, contact Carol Keyes at (651) 481-9787 or carkey@chess-safety.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.
WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your website, pay-per-click, search engine optimization, social media, and much more! With five levels of RPM to match your budget, goals, and competition, it’s built to drive your shop forward!
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.
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!
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.
22 | June 2022
INFORMATION PROVIDERS Mitchell 1 Contact: Mitchell 1 Representative 888-724-6742 Mitchell 1 offers AASP members special discounts on the Mitchell 1 family of integrated software tools. Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ products-services/collision-repair-shop-solutions/cloudestimating for more information. TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. 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.
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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). 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 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.
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