AASP-MN News September 2024

Page 1


Jodi Pillsbury

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UPCOMING EVENTS

First Tuesday Each Month, 6 - 8pm Northern MN Collision Shop Meeting TBA Northern MN

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

Second Wednesday Each Month, 7:30– 9:30am Central MN Area Collision Shop Meeting APH Headquarters, St. Cloud

Third Tuesday Each Month, 9:30 - 10:30am Mechanical Zoom Meetup

Third Thursday Each Month, 9:30 - 10:30am Collision Zoom Meetup

I like to dig into the topics that keep cropping up in my conversations with team members at LaMettry’s and AASP-MN members. Here is the problem I’m repeatedly struck by: shops continuously push for the maximum reimbursement possible from their payers with any increase being a win, but they don’t necessarily know their own numbers well enough to know if they are trending up or down overall on the profitability of any given operation. As I love to say, “You might have won the battle, but are still losing the war; don’t confuse the two.” To really know if you or your shop are making progress, you need to understand the territory you are measuring wins and losses by.

As shops, both collision and mechanical, we are constantly adding data points to the estimating and shop management systems we use with every repair. BUT, if we don’t add data in a way that is consistent and retrievable, it becomes very difficult to use the data to improve our businesses. Unfortunately, in collision shops it often seems like insurance companies have more insight

for fundamentally non-standard operations. In my role as AASP-MN President, I’m more keenly aware of the dichotomy between collision versus general service versus mechanical repair work. Calibrations are part of all three of these areas, so please don’t stop reading thinking I’m just complaining about the headache of

Governor Walz Takes the National Stage

Even with a Presidential election looming this November, the 2024 general election in Minnesota felt a bit muted earlier this summer. Minnesota House members are all on the ballot this fall, and control of that chamber is certainly important, but members of the Minnesota Senate, as well as the Governor and other Constitutional Officers, are not up for reelection. That meant we would be dealing with the same cast of characters in the Governor’s office and in the Senate, both controlled by the DFL, when we gavel back in for a new legislative session in January 2025.

But that all changed after a massive political shock at the national level. As you’re surely aware, Minnesota Governor Tim Walz has been selected by Vice President Kamala Harris to join her run for the White House as her Vice President. After a whirlwind couple of weeks following President Biden’s announcement that he would not seek reelection this fall, Governor Walz was able to force his way into the national conversation with numerous appearances on cable news and political podcasts. Walz was able to highlight his record of accomplishments during his time as Governor, as well as go on the offensive with snappy attacks on both former President Trump and his running mate, Ohio Senator JD Vance.

While Governor Walz’s rise to national prominence may have appeared to some to have happened practically overnight, keen observers have noted his intentional framing of his legislative record in recent years to position himself for an opportunity like this if one should arise. After the historic 2023 legislative session in which the DFL controlled Legislature enacted a whole slew of longstanding DFL policy priorities, Governor Walz hit the road to tout Minnesota’s successes. Then, in December 2023, Governor Walz was selected to chair the Democratic Governors Association, an organization that works to elect Democratic governors across the country and funds a massive amount of TV and radio ads for competitive races. This high-profile new position helped provide additional opportunities for Walz to establish and strengthen some of his national political connections.

Walz’s decision to join Vice President Harris in her bid for the Presidency could have dramatic impacts here in Minnesota. If Harris and Walz are successful in November, which is far from a given with a very tight race projected by the current polling, Minnesota would see a few major changes to state Government. First, current Lieutenant Governor Peggy Flanagan would be elevated to Governor to finish out the final two years of Walz’s term. She would become the first Native American woman to hold the office of Governor in the history of the United States. Lieutenant Governor Flanagan’s ascension to the Governor’s office would then trigger another elected official’s move – current State Senate President Bobby

Joe Champion would become Lieutenant Governor for the remainder of the term.

This chain of events would then necessitate a special election to fill Senator Champion’s downtown Minneapolis Senate District for the upcoming term. And while that seat is a safe DFL district, with the Senate currently split 34-33 any special election would essentially be for control of the Senate, which would undoubtedly draw plenty of attention and money. Special elections offer a different dynamic than general elections, as there is a much lower voter turnout and special interest group spending can have more of an impact when there are less voters to reach and influence, so even a race for a normally safe DFL seat would certainly be a major political event in Minnesota.

With all of these potential leadership changes and the political impact they could offer, the general election in Minnesota went from a fairly straightforward and local affair to a high-profile national event that could have lasting impacts in Minnesota and the country.

Why Join WIN?

WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market.

• Local/Regional Networking Events

• Annual Education Conference

• Educational Webinars

• Mentoring Opportunities

womensindustrynetwork.com

• Scholarship Program

• School Outreach Program

• Most Influential Women (MIW) Award

MN Transportation Teachers’ Best Kept Secret

During the first week of August each year, the Minnesota Teachers of Transportation and Industrial Areas (MTTIA) Professional Development Conference is held in Brainerd, MN at Creagan’s Resort and Central Lakes College. Here is what you need to know: over 100 dedicated teachers, and almost as many industry experts, come together to learn, network and cheer each other on as they gear up for the coming school year.

This year, there were 46 training sessions, including one from Shannon’s Auto Body (Brainerd). AASP-MN Executive Director Linden Wicklund gave an update on MNCARS and AASP-MN programing with a reminder to schools that while independent shops might not be as available as dealers to attend career fairs, independents are often the right fit for many of their students and AASP-MN can help with those connections.

So, if you or a team member could use a late summer business get-away with state-of-the-art training and direct networking with technical teachers from across the state in one spot, look into attending! You can also sponsor, offer to teach a session and have a table at the vendor and exhibitor showcase. Not sold? There is a steak dinner and a boat cruise with beer.

Next year will be the conference’s 40th anniversary, so mark your calendars now for August 5-7, 2025. Visit MTTIA.org for more information and follow on Facebook @MTTIAconference

Mark Your Calendar for Fall Career Events!

The Minnesota State Transportation Center of Excellence (TCOE) has done the hard part for us all! Visit MinnTran.org/events/ to find out more about opportunities to meet with students, support your local transportation education programs, and recruit new team members!

REMEMBER: The students entering the workforce were deeply impacted by the pandemic lockdown during their formative years. They are often afraid to start working in a shop before finishing school because they lack some confidence about their

Minnesota Careers in Auto Repair & Service (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.

own abilities in a harsh world. Hiring a student part-time on a flexible schedule can have both an amazing impact on their future and provide you with a new team member primed to shape as your ideal technician.

DO NOT skip your local school’s event because you don’t have a banner or handouts. MNCARS has career fair materials already made for you to use! Check out carcareers. org/motor-mouth and reach out for a box of supplies to be mailed to you! Email aasp@aaspmn.org or call (612) 623-1110.

AASP-MN THANKS OUR 2024 SPONSORS!

Premium Sponsor LKQ Minnesota

Platinum Sponsor Lube-Tech

Revv ADAS

Gold Sponsors 3M

AASP National Auto Value /Benco Equipment BASF CBIZ NCS/Single Source

Silver Sponsors Axalta Coating Systems

Colonial Life

Enterprise Mobility

Get out and get active in your local community promoting industry careers! Check out the MotorMouth toolbox at carcareers.org/motor-mouth

O’Reilly Auto Parts

PPG Automotive Finishes

Sherwin-Williams

Suburban GM Parts

United Fire Group Vestis

Bronze Sponsors aaa Auto Parts

C.H.E.S.S.

Dentsmart PDR Precision Diagnostics

getting insurance companies to pay. Alignments and most operations that include removal of a part near or including an ADAS feature are going to require calibrations, so mechanical shops are increasingly having to sell these operations and consumers can simply say “no thank you” even more freely than any insurance adjustor.

Calibrations continue to be rapidly-changing market disrupters that are hard to manage because of high barriers to entry, low margins confusing true costs, and even more confusing cost basis, as prices are pushed down by market conditions, but even more because of how widely variable the actual operations are between vehicle manufacturers. Paul Bostel, LaMettry’s Lead Master Technician and I have had many conversations on this topic recently. Since Paul is the one truly doing the calibrations he knows firsthand that an objective time study of segmented operations is nearly impossible.

ARE YOU INTERESTED IN:

Supporting future technicians?

Bettering yourself through ongoing education?

Increasing efforts to improve the automotive repair ndustry?

Taking advantage of amazing benefits, many at a substantial discount?

See pg. 14 for application, call (612) 623-1110 or email aasp@aaspmn.org

He wants to see apples-to-apples metrics on how his work compares to metrics provided by the insurance company. e raises valid concerns over how well the data is being cleaned to account for the different theories among shops on how to include calibration operations on estimates and final bills.

So, is your shop building enough standardization into your own data to be able to mine it for true

continued from pg. 4

insights? What about the shops in your regional market or on a national level? Are the place holders in estimates part of the data that will be used to set commodity-style market prices? If we don’t know our own numbers, how will we be able to ask informed critical questions about the numbers of others?

Digital natives are Americans who have grown up during the age of digital technology, which began to explode at the consumer level in the 1990s. With the internet at their mental core, digital natives differ significantly from earlier generations of Americans in how they search for information and make decisions concerning vehicle repair.

Digital natives were born after 1985 and span two generations: young Millennials and Gen Zers. They differ significantly in their aftermarket orientation and engagement from Baby Boomers, Gen Xers and older Millennials, who are digital immigrants born between 1946 and 1985.

Digital Natives and Digital Immigrants

Digital natives have grown up with personal computers, cell phones, the internet and all the other trappings of the digital age. In contrast, digital immigrants were late to the digital revolution and had to acquire digital knowledge after their formative years.

Digital natives are much more inclined than digital immigrants to use the internet to make buying decisions. Digital natives are quick to seek information from digital sources using various electronic devices.

Digital immigrants, on the other hand, are generally more comfortable with face-to-face, in-store relationships and use the telephone to acquire product and purchase information directly through human interaction.

Impact on Aftermarket

By 2030, digital natives will account for about 50 percent of light vehicle aftermarket product volume.

Digital natives and digital immigrants differ in three significant ways that affect their aftermarket behavior: use of the internet as the primary source of aftermarket information, preference for online transactions as opposed to face-to-face purchases and the growth of platform buying.

The internet is almost always the first resource tapped by digital natives to discover what is wrong with their vehicles, the cost of repairs and where to purchase parts (Do-It-Yourselfers) or to have repairs performed (DIFMers).

Digital immigrants (particularly Baby Boomers) are much more likely than digital natives to seek vehicle information directly from personnel at repair outlets or parts stores, by direct contact or telephone.

In-Store Shopping versus Online Shopping

Digital immigrants often see distinct differences between in-store shopping and quick-to-purchase (online) buying. However, differences between these two experiences are usually lost on digital natives.

Most digital natives perceive little difference between online (quick-to-purchase) buying and in-store buying. The advantages offered by in-store buying tend not to offset the benefits to digital natives from the quick-to-purchase experience, which include speed of transaction, variety of purchase alternatives and (in many cases) lower prices.

Similarly, digital natives are much less likely than digital immigrants to recognize an advantage in dealing face-toface with personnel at parts stores and repair shops when making decisions about what is wrong with their vehicle, repair costs, and where to buy products or have repairs performed.

Platform Buying Preference

Platform buying is a hot-button for digital natives with its speed of use, wide range of buying opportunities, often lower prices and one-stop shopping.

In searching for vehicle service, consumers are provided with electronic platforms offering access to many different repair outlets and parts choices, which, in turn, can provide different pricing and other consumer benefits.

Some platforms are specific to vehicle repair (e.g., Openbay, RepairPal, etc.), and others such as Amazon offer access to a wide array of products and services.

Amazon as an Aftermarket Platform and Search Engine

Many digital natives are figuratively joined at the hip with Amazon. They love and trust Amazon. It has become a powerful search engine that provides buyers with a wide range of automotive products and a growing array of automotive repairs.

Amazon, as an aftermarket electronic platform, can provide a level of trust to consumers, especially digital natives, that they cannot individually develop with specific repair outlets or parts outlets from which they might make an aftermarket purchase.

o2o Expansion

The growing volume and diversity of online-to-offline purchases (o2o) reflect the consumers’ increased use of the Internet, especially platforms, to make a wide range of buying decisions.

It is inevitable that digital natives, driven by their values and purchase preferences, will increase their use of digital platforms (such as Amazon) to research and purchase vehicle parts and services in the future.

This has profound implications for the future of the aftermarket as digital natives rapidly expand their share of the light vehicle aftermarket.

Six Major Takeaways

• By 2030, digital natives will represent about half of light vehicle aftermarket product volume. They span two generations born after 1985 (young Millennials and Gen Zers). Digital natives and digital immigrants differ in three significant ways that affect their aftermarket behavior: using the internet as the primary source of vehicle repair information, preference for online transactions and the growth of online platform buying.

• Platform buying has become the auto-repair hot-button for digital natives by offering speed of use, a wide range of buying opportunities, generally lower prices and onestop shopping.

• Digital natives are in love with Amazon. They trust it as a transaction platform and appreciate the wide variety of purchase options and prices it provides.

• Platforms, especially Amazon, have become search engines, offering buyers a wide array of products and services. This will fuel the growth of the o2o (online to offline) auto repair market.

• As an electronic platform, Amazon can provide consumers with a level of trust that they often do not establish with specific repair outlets or parts outlets from which they might make an aftermarket purchase.

• The growth of online-to-offline purchases (o2o) reflects the consumers’ increased use of platforms to make a wide range of aftermarket buying decisions. See the 2025 Lang Aftermarket Annual for an analysis of consumer generational differences that are shaping eCommerce, o2o auto repair, mobile repair and other key aftermarket areas.

Keeping it Spotless: The Importance of a Clean Room for Aluminum Repairs

When performing aluminum repairs, preventing crosscontamination is crucial. Aluminum is highly sensitive to contamination, especially from steel. If you don’t prevent steel dust from settling on aluminum-intensive vehicle surfaces, galvanic corrosion will occur and weaken aluminum components. When aluminum exterior surfaces like the hood, roof or door panel are exposed to steel dust, galvanic corrosion can damage a paint job. Aluminum dust also is explosive when exposed to a spark.

A clean room minimizes the risk of cross-contamination by providing a controlled environment free from airborne dust, metal shavings, and other contaminants. This ensures that the aluminum repair process is conducted in optimal conditions, prevents surface damage and helps maintain the integrity of the repair as required by OEMs.

The RAE Body Repair Station features a curtain that has special light reflection as well as fire approved properties. This will isolate your aluminum work area from nearby bays. Accepted by leading OEM certified collision repair facility programs, the body repair station features an e-glass curtain that meets fire retardation standard EN-13501-1 (required by OEM certification programs across the globe). A built-in viewing window meets standards for eye protection of workers outside the aluminum bay. LED lighting helps provide ideal lighting conditions when performing

intricate repairs, while a specially-coated welding curtain separates and protects the surrounding area from the aluminum bay. Please contact Reliable Automotive Equipment to learn more about how we can help you perform aluminum repairs safely, efficiently and cleanly. Visit Booth #32135 in the South Upper Hall at SEMA for more information on our full line of collision repair equipment, products, training, service and more.

The RAE Body Repair Station isolates your aluminum work area from nearby bays.

OFFICIAL MEMBERSHIP APPLICATION

As a member of the Alliance of Automotive Service Providers of Minnesota (AASP-MN), we will abide by the Association’s Code of Ethics, bylaws and other conditions of membership as established by the Board of Directors. We understand the AASP-MN logo must be used in accordance with the logo guidelines. It is understood membership in AASP-MN is subject to acceptance by the Association and is non-transferable. It is also understood that AASP-MN membership dues may be deductible as a business expense for federal income tax purposes, but are not deductible as a charitable contribution.

***PLEASE PRINT OR TYPE***

BUSINESS INFORMATION:

Business Name:

Business Representative Name: _________________________________________Title:

Street Address:

City: ______________________________ County:______________________ State:______ Zip: ____________

Phone Number: ( ) __________________________ Fax: ( )

Email: _______________________________ Website:

Number of Full-Time Employees: _______________ Number of Part-Time Employees:

PRIMARY DIVISION: (check one) Collision Mechanical/Transmission Associate Educational List other specialties: _________________________________ Date you started in business: ANNUAL GROSS SALES: $0 - $500,000

- $1,000,000 $1,000,000 - $2,000,000 $2,000,000 - $2,500,000 $2,500,000 - $5,000,000 $5,000,000 - $10,000,000 More than $10,000,000

WHAT BENEFITS MOTIVATED YOU TO JOIN AASP-MN?

I hereby consent to allow AASP-MN to receive details on my participation in association-recommended benefit programs including, but not limited to, account information and pricing, insurance premium, dividend and claims information. I further agree that by providing my mailing and email addresses, telephone and fax numbers, I consent to receive communications sent by or on behalf of AASP-MN via regular mail, email, telephone or fax. I understand that the AASP-MN sign and logo policy authorizes businesses that are members in good standing to use the AASP-MN logo. Should my membership in AASP-MN expire, I agree, at that time, to discontinue all uses of the association’s logo and signs.

Name (Print):

Signature: ________________________________________________________________ Date:

DUES:

Regular (Collision or Mechanical Repair Shop)

1-3 Employees: $295

4-10 Employees: $455 11 + Employees: $615 Out of State: $150

Addt’l locations: __ @ $50 ea. Associate (Suppliers): $475 Educational (Schools): $100

Complete for Additional Location* Only:

Company name: Representative: Address: City: ________________________________ Zip: Phone: ______________________ Fax: Email:

*If you have more than one additional location, please attach a list of them to this application.

PAYMENT OPTIONS: _____ Check enclosed, payable to AASP-MN _____ Credit Card (select

Note: AASP-MN adds 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 #: ____________________________________________ Exp. Date: _______ /_______ CVV: Billing address:

RETURN TO: AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113

Phone: (612) 623-1110 or (800) 852-9071 Fax: (612) 623-1122 Email: aasp@aaspmn.org Website: http://www.aaspmn.org

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Is a Partial Repair Ever “ GOOD ENOUGH? ”

Part 2

Collision industry leaders consistently emphasize the importance of performing a “complete and proper repair” in accordance with OEM recommendations in order to restore a vehicle to its pre-accident condition, but – for a variety of reasons – shops may not be performing every single task. Are all those repairs necessary? If the vehicle is still “driveable” without addressing those issues, is it “good enough”...or should shops be refusing these partial repairs?

Last month, AASP-MN News explored this subject with experts on the mechanical side of

the industry (available at grecopublishing.com/ aasp0824coverstory). Now, the conversation continues with two leading collision consultants: Mike Anderson (Collision Advice) and David Luehr (Elite Body Shop Solutions).

So, why do some shops perform partial repairs? It often boils down to a failure to adequately diagnose the problem(s), a lack of qualified help, or payment issues.

“Shops that are not equipped to diagnose all the necessary repairs need to take a step back and implement a systematic approach to incorporating

OEM repair procedures into their repair plans to avoid releasing an improperly repaired – and potentially unsafe – vehicle to a customer,” Luehr recommends. “Likewise, technicians should not be working on vehicles that they have not been properly trained to repair. It all begins with performing a pre-scan on the car to ensure you’re diagnosing all the necessary repairs and writing a thorough repair plan.”

Payment is another major barrier to complete repairs in some shops, whether those concerns stem from a customer or the insurer. “Typically, I hear about this situation when a customer is paying out of pocket; they simply cannot afford all the repairs and want to do the bare minimum to get their car running safely again,” Anderson indicates. “Customers may also ask for temporary repairs to get them through when a shop has a backlog. There are definitely valid reasons to perform ‘partial’ repairs, and it’s pretty common for shops to offer this courtesy when it’s safe to do so – and it’s probably a really good idea from a customer service standpoint.”

Sometimes, shops struggle with collecting compensation from a third-party payer. “It’s the classic ‘You’re the only one who charges for that’ with the insurance carrier,” Luehr contributes. “But sometimes, a customer cashes their insurer’s check and decides they don’t want to pay $1,000 to replace a headlight because of a tiny scratch. It’s their car, so unless it impacts the vehicle’s safety or unless the shop has an agreement with the insurer to replace it, it is ultimately the customer’s decision on whether they want a cosmetic task performed.”

Unaddressed maintenance issues can occasionally create additional headaches for collision shops because those items are often required to complete other elements of the repair but not covered by insurance since they are unrelated to the loss event. “Perhaps you do an alignment, but the tires are worn, so it won’t drive straight no matter what you do. Or during a pre-scan, you find diagnostic trouble codes that are unrelated to the accident,” Anderson provides examples. “There are lots of ways that unaddressed maintenance items could create problems, which is why it’s so important for shops to have upfront conversations with their customers about the potential need to pay out of pocket for certain items.”

Engaging in open dialogue with one’s customers is vital for a number of reasons. “We absolutely have an obligation to educate the customer if there’s a safety concern,” Anderson stresses, pointing out that today’s complex vehicles often contain many interrelated components. “We should listen to what our customers want, but we are the experts, so we are responsible for determining if acquiescing to that request could impact the functionality of any safety features or ADAS that consumers may be relying on.”

“Today’s technology drastically changes how we approach repairs,” Luehr agrees. As an example, he noted that a shop could easily spot in the corner on a 1993 Buick with a bumper scratch, but with modern

vehicles, there’s more to the simplest repair than what meets the eye. “If we have the same scratched bumper on a 2023 Buick, we now have blindspot monitors and all sorts of equipment under the bumper, so we’re talking about a completely different kind of repair. We are responsible for understanding that car and everything it’s equipped with so that we can properly assess and repair the damage on newer vehicles.”

Still, there are some repairs that are strictly cosmetic, such as touching up a scratch on a quarter panel where no ADAS is hidden beneath the surface. “Perhaps, the customer just needs their work truck to be safe and functional and doesn’t care what it looks like,” Anderson suggests. “Every situation is different, and each vehicle has to be looked at based on its own merit.”

Another example may be opting not to clearcoat the entire bumper when performing a spot repair, according to Luehr. “Is it the right thing to do? Well, the paint could possibly fail, but it is not unsafe. If a customer wants to drive a car with a mismatched door because they don’t want to pay for the paint job, it has no impact on the vehicle’s safety. It essentially becomes a business decision that each shop owner must make for himself or herself with the customers’ input, as long as they are meeting the criteria of a safe repair.”

Anderson offers another angle to these considerations while continuing to emphasize that safety is paramount. “We have to consider whether a repair item is safety-impacting or strictly cosmetic, while keeping the customer’s best interests in mind. Sometimes, that includes considering their financial needs. With insurance premiums increasing 20-30 percent last year, many consumers are reluctant to file a claim, so they’re opting to pay out of pocket instead. Our industry does not exist in a vacuum; the current state of the economy significantly impacts some of the decisions we may need to make, and it’s important to be open to what our customers need most.”

While Luehr concurs that it’s worth being “openminded about cosmetic repairs,” he reiterates that it all comes back to safety. “As an industry, we always need to be performing the highest quality repairs, and that means asking, ‘Am I jeopardizing the safety of people in this car by doing this repair this way?’ If not, we can explore it. But if our actions could create a potential safety concern, we must refuse that request and clearly communicate our reasons with the customer. Safety first!”

“Safety comes first,” Anderson echoes. “Shops need to protect themselves from possible liability concerns, but first and foremost, our responsibility is to our customers who entrust us to make sure the vehicle they drive will safely transport them and their families. They may not always understand why we can’t do the partial repairs they ask us to perform, so we need to be prepared to explain the safety implications so that we can protect them from themselves when necessary!”

Schmitt Automotive Repair, Rochester

Amongst the hustle and bustle of downtown Rochester sits Schmitt Automotive Repair ready to tend to locals’ and passersby’s every need. Founded nearly a decade ago by Tim Schmitt, the shop occupies a historic building that has been recently recognized as a landmark by the city, exuding charm with its 1930s art-deco style architecture.

Schmitt’s journey into the automotive industry began humbly. After graduating high school and finding himself unfulfilled in a grocery store job, he seized an opportunity at a salvage yard from one of his dad’s friends. “He told my dad he was always looking for dismantlers and people to help out, so I figured it was as great a job as any.” Having an already established interest in cars, thanks to his dad, it was an easy decision to make the switch. “Growing up, my dad saved money by fixing cars and I always helped him out. I went from holding the flashlight to actually helping pull the engine and that kind of stuff,” he reminisces.

Working as a dismantler for 10 years laid the foundation for his career in auto mechanics. In 2014, when the current shop location became available for sale, Schmitt saw his opportunity to step into entrepreneurship. He

transformed the existing facility into Schmitt Automotive Repair. Under his leadership, the shop evolved from its early days, when it was predominantly focused on tires and alignment, to its current comprehensive service offerings. Today, the shop is renowned for its ability to handle repairs on all makes and models, from routine maintenance like oil changes to complex engine and transmission work. “Customers can come here for an oil change and leave with their suspension fixed too. If there is an issue that needs to be diagnosed and repaired, we can do all that in one trip!” This approach not only saves time for customers but also ensures they receive thorough, reliable service.

Pushing their commitment to provide only exceptional customer service is his accompanying team. Mechanic Raen See brings 20 years of experience to the shop. His expertise spans a wide range of tasks, having worked on a lot of different cars throughout his career. Lane Becke is a newer mechanic who has quickly been able to develop his skills. Working on his own vehicles during weekends has contributed to Becker’s growing reputation for quality craftsmanship and attention to detail. Together, the two deliver precise and effective automotive repairs. Most recently, Cesar Montero-Zavala has come on board, bringing 15 years of mechanic experience.

To keep everyone up to speed, Schmitt encouraged and paid for employees to attend evening training seminars. “We’re partners with O’Reilly Auto Parts, and especially before COVID-19, we did a lot of evening seminars, and I encouraged the guys to be ASE-certified. Unfortunately, the pandemic put a crimp in a lot of that training, but we’ve been starting to get back into it. All the guys here have a decent base of knowledge to begin with, so it’s just been a matter of keeping them up on new technology.” To do so, Schmitt does his best to keep the equipment in the shop up to date.

Located in downtown Rochester, the shop is situated just two blocks away from the Mayo Clinic. “We’re in a convenient location to work for their employees,” Schmitt says. “The hospital gets a lot of out of town visitors too, and because of that, at least a couple times a week, there will be someone whose car breaks down on the way there. We offer a close and convenient place where they can have their car fixed, deal with their emergency, and still make their appointments.”

Schmitt Automotive Repair faces challenges common to the industry, with Schmitt noting the consequences of economic fluctuations and access to affordable health insurance for employees. “It would be good if there was a way to get medical insurance that caters to mechanics.”

Tim Schmitt, founder of Schmitt Automotive Repair
Schmitt Automotive Repair occupies a historic building that has been recently recognized as a landmark by the city of Rochester

He hopes that industry associations like AASP-MN can advocate for solutions to these issues and provide support and resources crucial for small businesses like his own. “One issue I see is being able to afford to bring in good talent and provide them with a good pay package.”

As a newer AASP-MN member, Schmitt reports that joining the Alliance has proven beneficial by providing networking opportunities, access to specialized training, and discounted services. “It keeps us updated on new technologies and industry standards,” he notes. “For instance, there was a training session on ‘What to do with an abandoned car,’ and that situation occasionally pops up, so it was a good resource for me and my guys. All those questions you didn’t know you needed to ask... can be found through the association.” Membership ensures the safety of Schmitt’s technicians and fosters a safer and more informed environment.

Choosing the auto industry has provided Schmitt with rewards that he knows he wouldn’t have found in other career paths. “When I was younger, I explored various fields, but it became clear that the auto industry was where I truly belong and where I intend to stay until retirement.” His early experiences with his father were pivotal. “My dad was an engineer, and I inherited a bit of that ‘engineering knack’ which has translated well into auto repair.” Understanding the mechanics and technical aspects early on allowed him to develop a deep

appreciation for the intricacies of automotive repair.

Looking ahead, Schmitt remains committed to the growth of his shop and its community impact. The recent landmark designation for the shop’s historic building underscores its cultural significance and deeprooted ties to Rochester. “It’s an honor to be recognized for preserving local history,” he reflects. As Schmitt Automotive Repair approaches its milestone 10-year anniversary this September, he remains optimistic about the future as he continues to cement the shop’s role amongst community members.

Paint | Aftermarket | Recycled | Transmissions & Engines

At LKQ, the “R” in P.A.R.T. stands for Recycled OEM parts LKQ first began 25 years ago through the acquisition of several auto salvage yards, and through the years, LKQ has grown to become the largest recycler of vehicles in the industry. LKQ now operates more than 125 auto recycling yards across North America. Through its stateof-the-art processes, LKQ recycles or re-sells more than 90% of the materials from end-of-life vehicles that would otherwise end up in landfills.

Mechanics Raen See and Cesar Montero-Zavala

Are You Ready for an Inspection?

Do you feel prepared if Minnesota OSHA shows up at your door? Does your staff know what to do? A word of advice: Hiding is not an option.

Minnesota OSHA has recently inspected several automotive repair and tire shops, either because of complaints or as part of programmed inspections. A typical inspection has resulted in about $1,500 in penalties, but we know of one as high as $8,000. And, if you fail to abate the citations and file your paperwork on time, that $8,000 can easily balloon to over $40,000!

Here are some (relatively) easy pointers:

Be prepared before OSHA arrives.

• Keep records of all safety training. Know where your safety records are located.

• Make sure employees have – and use – the proper personal protective equipment. The primary items will be safety glasses, face shields (for transferring chemicals and grinding) and hearing protection.

• Have written safety programs and know where to find them. Do the same with preventive maintenance ‘ records (hoist inspections, eyewash maintenance…).

• Keep your OSHA 300 logs of injuries up to date.

• Keep records of safety committee meetings. Any opportunity you give employees to provide feedback on safety and that you document could be considered a safety committee meeting.

• Make sure your front office folks know what to do when OSHA shows up. And that they know to notify the shop owner or manager immediately.

When OSHA arrives:

• Ask for their business card and why they are at your shop (was it a complaint, or your site just came up for inspection).

• Offer them a cup of coffee. Ask what records they will want to see and start gathering those. If you have a break room or office where you can meet with them, set them up in there.

• Be polite. You can refuse to let them in, but they will just come back with a warrant. We don’t recommend that.

• The inspector will hold an opening conference to review the purpose of the visit.

• Provide the documents they request, if you have them. Most inspectors will also give you 24 hours to email the records to them.

The walk around

• Never allow the inspector to go into your shop unaccompanied. If you aren’t available, have a manager go with them. Make sure whoever goes along knows what to do.

• The inspector will walk through your shop. Go with that person. Take notes. Take pictures – anything the inspector photographs, you also need to photograph. You won’t be able to see the inspector’s records, so you want to make sure your records are thorough.

• If the inspector points out a concern, such as a damaged extension cord, fix it immediately if you can. Cut the

cord and put it in the trash.

• The inspector will interview employees. That is a private conversation, so stand aside during this.

OSHA has had a lot of staff turnover, with experienced inspectors retiring. That means the inspector you get may have never been in your type of shop. You don’t have to volunteer information but do explain your processes and operation.

After the inspection

• Don’t wait for the inspection report to start correcting issues that the inspector pointed out. If they mentioned the need for correct labeling on containers, get your containers labeled. If they said you need forklift training and evaluations, get that scheduled. Once the report arrives you may have very little time before the abatement date, the date by which violations must be corrected.

• Read the whole packet. It’s long, even if you get just one citation. Look for these parts:

• Citation and Notification of Penalties. This spells out what problem was found, what standard was violated, how much you’ll be penalized and the date by which you must correct the problem.

• Invoice. You need to pay this promptly, unless you are contesting the citations.

• Mandatory Progress Report. You have to send this in. This tells OSHA that you are correcting the problems. It is mandatory.

• Petition for Modification of Abatement Date: if you can’t get the fixes made by the abatement date, OSHA will issue an extension only if you request it. Use this form to request more time. Extensions are usually only for 30 days, but you can submit additional requests if needed, as long as you can show progress toward completing the abatement.

• Notice of Contest: if you are going to contest the citation, the abatement date, or the penalties, you will need to complete this form and have it notarized.

• Expedited Informal Settlement Agreement (EISA): if you only have one or two serious citations, MNOSHA may offer a discount if you do not contest the citations. It is almost always worth taking if offered.

• Pay attention to dates! You only have 20 calendar days from the date on the citation packet to contest.

• Pay attention to instructions! If you contest and forget to have the form notarized, OSHA will reject it. They are not at all forgiving on these procedures or deadlines.

Should you contest citations? Yes.

OSHA doesn’t get upset if you contest citations. You won’t end up on a hit list.

You can contest the citation, the amount, the abatement dates, the type of violation or the entire citation. Even if you agree you were in violation, we always recommend contesting at least the amount. You can usually get at least a 30 percent, up to a max of 40 percent, reduction in penalties if you contest. But you still need to correct any hazards that were found.

If you are offered an Expedited Informal Settlement Agreement, it usually is worth accepting that and not contesting the citations (unless you think they were wrong).

Penalties

While OSHA penalties seem to be a mystery, they follow a very specific formula. The maximum penalty per violation (other than fatalities) is currently $15,625. The actual penalty is discounted from that based on probability (how many people are exposed to the hazard, how close and how often employees are exposed) and severity (how bad could an injury from that hazard be).

You can get up to 95 percent credit off the penalty: up to 30 percent for good faith (you have a safety program, you do annual training, you have safety committee minutes), 55 percent for size of company and 10 percent for not having been cited for the same violation within the last three years.

The best prevention against OSHA violations is having a strong safety program. Don’t think you’re doing okay just because you’ve had a few injuries. That might be due to luck. As any gambler will tell you, luck isn’t very reliable.

For more information, contact Carol Keyes at carkey@chess-safety.com or 651-481-9787.

What’s Wrong With This Picture?

Incorrectly labeled reused containers and an unlabeled container. This type of container is often used only for brake cleaners. But it still needs to be labeled, as someone new wouldn’t know what it holds. This was an OSHA citation - for a penalty of $1,200. It was considered a serious violation (the original labels on the reused containers indicated the material was nonhazardous, but the degreaser in the containers was corrosive).

ESTIMATING TIPS

Visit degweb.org to submit a Database Inquiry and contribute to database accuracy!

HELPING TO IMPROVE COLLISION REPAIR ESTIMATE INFO THROUGH REPAIRER FEEDBACK

If you’re performing automotive repairs of ANY kind, you need to utilize the DEG! Check out some recent Database Inquiries - and their resolutions - below!

CCC: Quarter Panel Section – CCC may identify labor to section a quarter panel. The section labor time is often different from a full panel replacement. When there is an approved section option by the OEM, utilizing the section labor would account for the additional steps needed. Included and not-included notes are addressed in the HNotes tab.

Always follow state laws in identifying full panel replacement vs. section labor on your final bill.

If there is not an OEM procedure to support a section, users are encouraged to submit a DEG inquiry to clarify.

Solera

Qapter (Audatex): Set Up and Measure NOT INCLUDED – Qapter Estimating offers users the option to select “Set Up and Measure” as a stand-alone operation from its database with an on-the-spot evaluation determined by the repair planner.

It’s not uncommon to perform a “Set up and Measure” – aka “Pre-Measure” – during the repair

planning stage to determine the current vehicle structural condition. In addition, “Set up and Measure” may have to be done multiple times for verification during the repair process. Any duplicate effort performed in the repair process would be an on-the-spot evaluation.

DEG Inquiry 12205 states, “Audatex does not provide procedures or times for set-up and measure due to the wide range of measuring/straightening devices used in the automotive repair industry. This is covered in the Database Reference Manual section 4-2 Labor Exclusions. ‘Setup of a vehicle on a frame machine, dedicated bench, or other measuring/straightening devices. Pulling time is not included (Standard Manual Entry M31 is available)’. Therefore, any operations that are included or not included in the Set up and Measure would need to be determined by the estimate preparer and agreed upon by all involved parties.”

PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE

CBIZ

Contact: Brad Schmid

763-549-2247 / bschmid@cbiz.com

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

EMPLOYEE BENEFITS

CBIZ

Diego Campos

763-228-0259 / diegocampos@cbiz.com

AASP and CBIZ are partnering to help make the process of purchasing employee benefits a lot less stressful for members. The CBIZ platform provides increased transparency and more options for savings, the ability to predict rate increases early, and guidance from CBIZ benefits experts. New Health Insurance Options Now 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

Vestis (formerly Aramark)

Contact: Ryan Vick 612-269-2303 / vick-ryan2@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 Vestis each year.

CREDIT CARD PROCESSING

Association BankCard Services

Contact: Carly Chivers 715-254-9600 / carleyc@midwesthardware.com

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

LEGAL CONSULTATION

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

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

WEBSITE AND INTERNET MARKETING SOLUTIONS

Autoshop Solutions

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

Autoshop Solutions has developed the most 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 all-in-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.

SAFETY COMPLIANCE

Complete, Health, Environmental & Safety Services (C.H.E.S.S.)

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.

AUTO EMPLOYEE ASSESSMENT

Assessment Associates International

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

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

BUSINESS FORMS

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 651-387-9168 / chobrough@cbiz.com

Members receive 20% discount off standard payroll, time and attendance, and HRIS products and services.

LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING

Automotive Seminars

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

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

BUSINESS COACHING

180BIZ

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

Members receive a 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.

Over 2,500 vehicle-specified units in stock Up to 3-Year/100,000 Mile Warranty Manual Transmissions

1-Year/Unlimited Mile Warranty

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