AASP-MN News October 2023

Shannon Christian

MECHANICAL SEATS

Tim Kruse

Randy Notto

STAFF

EXECUTIVE DIRECTOR

Linden Wicklund

OFFICE MANAGER

Jodi Pillsbury

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UPCOMING EVENTS

Third

Creating a Workforce

By Travis Doyle, AASP-MN Collision Division Director

As a business owner or manager, it should no longer be a surprise that when you post an online help wanted ad, you get little to no response from qualified candidates. No matter what website you post the ad on or how much you pay additional to “boost” the post, the number of candidates applying keeps shrinking and shrinking. We no longer have the luxury of posting and waiting for the perfect candidate; there is no one to apply.

All of this sounds bad for our industry, and a pain for the hiring manager or owner filling these open positions. But if you keep a positive mindset, this gives us independent automotive shops an opportunity and potential edge over our competitors. We, as independent shops, have the ability to be more creative in hiring solutions. It is to the point in the automotive industry that we need to create our future workforce ourselves by encouraging and implementing internship programs.

At our shop, Arrowhead Auto Body, we have had 11 apprentices on the body technician side over the last five years. Almost all of them have turned out to be great technicians and are now making a good living doing auto body. And for the ones who didn’t work out, they gave it a good shot, but it wasn’t a career for them. For the people that decide to stick with it for their lifelong career choice, it is an awesome industry to be a part of, with great pay. It may not be the cheapest option for getting new technicians, but they are trained the way you want them to do things and are usually dedicated to the shop.

Before you begin this internship journey, you will need to identify whether you have the right shop culture to sustain such a program. If you have a group that is closed off and not willing to help one another and can’t see the bigger picture, you are going to have issues bringing

someone in with little to no knowledge. Now, if you have a shop culture that encourages group empowerment, helps one another and believes in a good future for the automotive industry, you will succeed.

The first step in this journey is going to be discussing and partnering with a current one of your “A” technicians who would be willing to take on an apprentice. This may not be the fit for every technician in the shop but the ones who have done it at our shop have been happy with the results. Another important thing to consider is some people work together better than others, so lining up the right people is key. One of the first things your “A” tech is going to want to know is how payment of this apprentice will work, and I will discuss those options later.

The second, but most crucial, step is hiring or promoting someone into this apprenticeship position. This is an important step as you want to make sure you are getting the right person because you do not want to invest too much time or money in someone who isn’t motivated or mechanically inclined. The first approach would be looking internally at the shop level. Often, there is someone in another department who would be interested in the shot to make a career in the automotive field. It’s always good to make sure anyone internally doesn’t want the position before looking externally for a candidate. We have had good results posting ads on Indeed or Facebook, through word of mouth and family members of employees or friends at the shop. We have also had success working with our local auto body college, Lake Superior College, and hiring students for three weeks during their winter break. This gives all parties a good chance to determine if it’s a good fit or not. It is important during the interview process to make sure their long-term goals align with your organization, and they’re motivated to learn, because it can be a long training process.

One of the barriers of entry for people starting out in the automotive industry is cost of tools. If your apprentice went to a vocational school, they may have received some large discounts, but if not, the cost of tools is intimidating. This is an area where many shops are taking different approaches and being creative with it. The best option and hiring incentive would be a tool allowance – a budget that the shop sets for the apprentice to buy tools

continued on pg. 12

Policy Changes Around the Country

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

AASP-MN continues to work in the “off-season” – when the legislature is not in session – to further refine and advance policy changes that will positively impact members’ day-to-day work. To that end, AASP-MN leadership and members met with the Insurance Federation of Minnesota to discuss legislation introduced during the 2023 legislative session. The purpose of the discussion was to examine some of the underlying problems that led to the draft legislation and to determine if there are additional solutions to consider to improve the proposed legislation.

Along with meetings and ongoing AASP-MN member conversations, we also monitor legislation passed in other states and at the federal level to potentially draw upon relevant policy initiatives. We’ll highlight one recent and promising state law change along with an ongoing state and federal policy issue –The Right to Repair.

State Spotlight - Rhode Island

This past year, Rhode Island made significant changes to its Unfair Claims Settlement Practices statutes and created a new process for independent inspections and appraisals. These consumer and repair shop policy wins are relevant in that they are similar to solutions AASP-MN has discussed and, in some cases, introduced through proposed legislation in recent years.

The first change requires insurers to compensate for procedures identified by the original equipment manufacturer (“OEM”).1 Insurers must compensate for these procedures when included in the repairer’s appraisal or requested by the repairer.

The following change addresses delays in the appraisal process by requiring insurers to promptly inspect, which is defined as within three days of a

continued on pg. 13

AASP-MN Hosts St. Paul Saints Game Outing

AASP-MN hosted “A Night Out with the St. Paul Saints,” Tuesday, September 19 at CHS Field in St. Paul. Over 80 AASP-MN members, their employees and families attended the event, which kicked off with a tailgate party at Lancer Service – just a few blocks from the field.

Along with the free parking provided by Lancer Service, attendees enjoyed BBQ burgers, brats and hotdogs, along with a few cold beverages, and great conversation before heading to the 6:30pm game. The game featured the St. Paul Saints vs. Toledo Mud Hens. With help from five Major League rehabbers, the Saints took down the Mud Hens 4-2.

AASP-MN Monthly Morning Meetups via ZOOM

AASP-MN Executive Director Linden Wicklund hosts open format ZOOM sessions each month for members to come together, network, swap ideas and ask questions! This ongoing opportunity to connect is designed to be a welcoming space for new ideas and everyday challenges alike.

MECHANICAL SHOP ZOOM MEET-UPS:

DATE & TIME: Third Tuesday each month, 9am to 10am

REGISTER AT: https://bit.ly/AASPMNzoomregMECH

COLLISION SHOP ZOOM MEET-UPS:

DATE & TIME: Third Thursday each month, 9am to 10am

REGISTER AT: https://bit.ly/AASPMNzoomregCOLLISION

We hope you can join in!

MNCARS & AASP-MN Connect with Students

During Busy September For the Alliance School is back in session, and so are in-person career fairs!

On September 19, AASP-MN Executive Director Linden Wicklund joined the Transportation Center of Excellence (TCOE) team to promote automotive careers at The Creators Wanted Twin Cities Premier event held at Saint Paul College in St. Paul, MN. The Creators Wanted award-winning workforce tour is the product of a partnership between the National Association of Manufacturers and The Manufacturing Institute. Union Pacific and the Minnesota Chamber of Commerce participated in bringing the tour to Minnesota. TCOE brought the paint booth virtual reality tool to give students hands on experience. Check out the TCOE online calendar at https://www. minntran.org/events to find an event in your area! Many of the students enrolled in automotive programs are not yet working in the industry!

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.

Get out and get active in your local community promoting industry careers!

Take advantage of the resources in the

MotorMouth toolbox at carcareers.org/ motor-mouth.

AASP-MN Executive Director Linden Wicklund (pictured with two of her kids) enjoyed the game with her family during the Alliance’s “Night Out with the St. Paul Saints” at CHS field last month.

Also on the 19th, AASP-MN member Scott Merschman (Kenny’s Clark & Goodyear; Bemidji) represented MNCARS and the automotive industry at the Bemidji Career Academies Career Fair. More than 60 area businesses were able to interact with students while they had a chance to try out many career areas and consider what their futures may hold after graduation.

On September 20, Dan Sjolseth and Linden represented both MNCARS and AASP-MN at DCTC’s fall Auto Service Career Fair. Members aaa Auto Parts, Apple Auto, and Honest-1 Automotive all had display tables promoting immediate openings within their businesses. Several students who work for other members or have received scholarships made sure to stop by and introduce themselves.

If you are interested in presenting in a classroom or having a booth at a career fair, MNCARS can send you all the materials you need.

Also on the 20th, AASP-MN sponsored a hole at the MN I-CAR/SkillsUSA Golf Outing. This event directly funds several of the AASP-MN scholarships awarded each year. Many members of AASP-MN participate to help make the event a success!

Platinum Sponsors

LKQ Minnesota

Lube-Tech

Gold Sponsors

3M

AASP National

Auto Value / Benco

CBIZ

FinishMaster

NCS / Single Source

ShopMonkey

Silver Sponsors

Accelerated Vehicle Technology

Aramark

Axalta Coating Systems

Colonial Life

Enterprise Rent-A-Car Heartman Insurance

O’Reilly Auto Parts

PPG Automotive

Refinishes

Sherwin-Williams

Suburban GM Parts

Sunbelt Business

Advisors

United Fire Group

Bronze Sponsor

aaa Auto Parts

C.H.E.S.S.

Dentsmart PDR

Radco

EV Sales Struggle to Reach Takeoff Speed in U.S.

Dark clouds are casting shadows over the once sunny picture of Electric Vehicles filling U.S. roads and reducing pollution. The press is full of stories about rising Electric Vehicle (EV) sales in the U.S. and how carmakers will flood Dealers’ showrooms over the next 18 months with new EV models. Nevertheless, there are signs that EV sales in the U.S. are in trouble.

While there is no doubt that EV numbers will increase on U.S. roads, growing evidence suggests that their domination will be a much longer process than enthusiasts have chanted and, perhaps, will not occur at all.

Top-Down Revolution

The revolutionary change from Internal Combustion Engine (ICE) to Electric Vehicles is primarily a top-down project.

The government is all in on replacing Internal Combustion Engine (ICE) vehicles with EVs. This monumental undertaking is not based on a groundswell of consumer demand, instead, it is a topdown decision about what consumers should do.

Historic Undertaking

Abandoning ICE vehicles involves massive changes in automotive battery technology, new manufacturing techniques, a nationwide vehicle-charging network and a historic and unmeasured surge in electricity use that will place unprecedented demands on the country’s already shaky electrical grid.

EV Sales

While EV sales are climbing in the U.S., there is growing evidence that EVs are not doing as well as expected and that sales could be reaching a point of unsustainable growth as the pool dwindles of potential buyers who are EV enthusiasts.

Five signs point to a rocky path for the rapid growth of Electric Vehicles on U.S. roads: mushrooming dealer inventories of unsold EVs, new EV price cutting, spotty resale value of used EVs, a challenging and untested secondary market for EVs and sharply lower projections of EV sales.

Growing Dealer Stocks

Unsold EVs are stacking up on dealer lots. While there is some disagreement on the number and growth of unsold EVs, there is little doubt that for many EV models, supply has overtaken demand.

This is worrisome since a flood of new EV models will reach dealers’ showrooms over the next 18 months, requiring a super spike in demand to avoid a disastrous supply glut.

So far, even before the flood of new EV models, demand is not keeping pace with growing shipments of EVs to dealers.

Price Cutting

To drum up consumer demand, some carmakers, notably Tesla, are cutting the prices of EVs (whose costs are much higher on average than comparable ICE models).

While this might be effective in the short run, it is a body blow to many EV owners who have seen their recently purchased EVs decrease in value due to price cuts.

Lower Resale Value

While price cutting has eroded the value of used EVs, other concerns, such as the advancing technology of newer EVs and customer dissatisfaction with range and safety issues, have led to many EVs depreciating faster than comparable ICE models.

This has implications for the attractiveness of new Electric Vehicles to potential buyers at a time when a flood of new EV models is set to hit dealer showrooms.

Vehicle Ownership Cycle

Most cars and light trucks on U.S. roads are driven by secondary owners. The average car and light truck passes through the hands of multiple owners before it is scrapped.

The reasons that customers buy previously owned vehicles can vary dramatically from why they buy new ones. The financial condition of many used car buyers is significantly different from that of new buyers. These two groups also can differ in their vehicle needs and uses.

These and other problems, which are starting to emerge in the EV market, could signal difficult issues for EVs to satisfy in the secondary-buyer market, representing over three-quarters of the cars and light trucks on U.S. roads.

Reduced Sales Projections

Many car manufacturers and industry analysts are slashing their projections of how the new EV market will develop by 2030.

Last year, it was not uncommon for analysts to proclaim that by 2030, EVs would capture two-thirds of new car and light truck sales in the U.S. Today, many such projections have been slashed to 35 percent or lower.

Future Developments

Without delving into a wide range of financial, technical, economic and international factors that could slash EV sales and suddenly reduce their production in the U.S., there is a growing recognition that projections of massive EV sales, common just a year ago, are out of step with current and foreseeable consumer demand.

Even if EV sales reach 35 percent of new car and light truck volume by 2030, which is unlikely, their impact on the VIO and aftermarket product sales will remain limited for a number of years beyond.

Six Major Takeaways

• While EV sales are accelerating in the U.S., there is evidence that EVs are not selling as well as expected in the U.S. There are five signs that EV sales in the U.S. face a rocky road: increasing dealer stocks, price cutting of

new models, low resale values, a questionable secondary market, and reduced sales projections.

• Soaring dealer EV stocks are causing a rash of price cuts to shake up customer demand. While this might be effective in the short run, it is reducing the resale value of EVs and delivering a financial body blow to many EV owners.

• Many EV models in the used market have lower resale value than comparable ICE vehicles. While some of this can be attributed to the advancing technology of newer models and price cutting, it could also point to a weakness in the acceptance of EVs by used-vehicle buyers.

• Most cars and light trucks are driven by secondary owners. Why consumers buy used vehicles can vary dramatically from why they purchase new ones. Indications are that the interest of buyers in acquiring

new Electric Vehicles may not be shared by used-vehicle buyers, who account for more than three-quarters of cars and light trucks on U.S. roads.

• Many car manufacturers and industry analysts are dramatically reducing their projections of EV sales, with 2030 projections being cut in half, compared to estimates of just a year ago, to approximately 35 percent or lower.

• See the all-new 2024 Lang Aftermarket Annual for an analysis of EV sales, EV penetration of the nation’s VIO, and the impact of EVs on aftermarket product volume now and in the future.

Visit bit.ly/LangAftermarket Annual 2024TOC to view the Table of Contents for the 2024 Lang Aftermarket Annual and bit.lyLangAftermarketAnnual2024 Orderform for the Order form.

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

List other specialties: _________________________________ Date you started in business:

ANNUAL GROSS SALES: $0 - $500,000 $500,000 - $1,000,000 $1,000,000 - $1,500,000 $1,500,000 – 2,000,000 More than $2,000,000

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: ________________________________________________________________

DUES:

1-3 Employees: $295

4-10 Employees: $455

11 + Employees: $615

Out of State: $150

Additional locations: ___ @ $50 ea.

PAYMENT OPTIONS:

_____ Check enclosed, payable to AASP-MN

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Please attach list for additional locations if needed.

_____ Credit Card (select type) Visa MC DISC AMEX

Credit Card #: __________________________________ Exp. Date: _______ /_______ CVV:

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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.

ESTIMATING TIPS

Audatex: Power Sunroof Option – Audatex vehicle chapters may exclude sunroof-related components and labor unless the correct vehicle options are selected.

Example of adding sunroof parts and labor would start in the vehicle options tab after decoding the vehicle VIN.

CCC: Cleaning Metal Debris & Shavings During Repairs – Recently, DEG Inquiry 31550 identified the “removal/clean-up of material debris from drilling/ grinding is considered a procedural step when performing either drilling or grinding.”

It’s critical for repairers to clean up metal shavings and debris after repairs are carried out to prevent corrosion contamination, additional vehicle damage or personal injury due to metal shavings.

Additional operations, such as the labor to protect the vehicle interior and exterior during welding, grinding, drilling, sanding etc. are also not included.

Audatex: Masking Textured Bumpers Multiple Times – Audatex/Qapter DBRM page 141 section 4-4 states, “Masking: Audatex refinish labor provides for masking within panel boundaries (e.g., openings, blackout effect, grilles, molded impact strips, indentations, textured/paint to match areas, etc.).”

Additional feedback from Solera Qapter on recent DEG Inquiry 13615 “Any additional masking or duplicate effort would not be included.”

Note that any materials used for masking, INCLUDED or NOT INCLUDED, are not accounted for in any labor value.

Mitchell: Building & Equipment Maintenance –DEG Inquiry 31609 provides feedback from Mitchell regarding building & equipment maintenance.

“Published collision repair labor allowances do not take into consideration or include facilities upkeep, or building/repair equipment maintenance.”

An example of equipment maintenance could include cleaning the paint booth or replacing filters.

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

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

continued from pg. 4

and a box to get started. If you encourage people to buy cheaper end toolboxes and tools to start, a $1,000 will go a long way for the general tools needed. Other options we have done in the past is helping finance tools and deducting a set amount out of their paycheck. The last option that is also common would be to have a generic toolbox owned by the shop for people to use until they’re able to save up money to purchase their own. Whatever route you decide to take, it is an important step to make sure your intern succeeds.

There are a lot of shops that create timelines for the apprentice to follow that help benchmark their progress over time. This can be a great tool if you spend the time to build something out for your shop. But this isn’t essential for success. We have completed all our apprentices without a written timeline, and it has also been effective. An important piece of training for us to have them achieve first is the blueprinting and mirror matching process. If they can learn to disassemble a vehicle and follow these two processes, the rest of the operations usually fall in line.

One of the tough parts of having an apprentice program is determining how long it should take them

to be ready to work without supervision. I’d say that it depends. Each person has a different pace of learning and has a certain level of confidence they need to build up. One thing is for sure, you don’t want to rush someone to be on their own because they will either fail or have poor workmanship for the shop, especially in a world of commission pay and when shop reputation is of high importance. I would say a general rule of thumb would be between six to 12 months of training time before an apprentice could be left on their own. Any further time, and it may seem like they start getting held back from excelling.

You don’t want to be the shop that is constantly complaining that no one is applying to ads and how short-handed you are. You don’t want to be in the position that you are one technician away from being out of business when your last technician retires or quits. You want to be the shop who has a constant flow of new technicians to sustain your shop, grow into a bigger one, or purchase additional locations. Now is the time to implement an apprenticeship program to secure your shop’s future workforce!

Greco Publishing has successfully served the automotive repair industry for over 30 years in print, online and as an association liaison. Our team handles all pre-press production in-house, from ad design to editorial layout.

Greco Publishing also provides a variety of services to cover our clients needs and facilitate their day-to-day business.

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electronics, with many others introducing legislation.3 In 2023, Minnesota joined the list of states that have passed Right to Repair laws, albeit with an explicit carve-out exempting the automotive industry.4 There continues to be draft federal legislation, although the path forward is uncertain at present time. This issue will likely continue to be a part of the landscape moving forward, so expect to hear more on this front from AASP-MN.

2

request by a repair shop. One of the most important changes is the added consequence of failing to schedule the appraisal inspection. The new law states that “if the insurer’s appraiser fails to inspect the damaged motor vehicle within the allotted number of business days for an initial appraisal (three days) or a supplemental appraisal (four days), the insurer shall forfeit its right to inspect the damaged vehicle prior to repairs, and negotiations shall be limited to labor and the price of parts.” The law goes on to say that the insurer is prohibited from disputing “the existence of damage or the chosen manner of repair,” with minor exceptions.

The last change in this law is also substantial. It creates a right to a third-party appraisal and lays out multiple steps when parties can agree on the amount of a loss. The law requires the insurer and vehicle owner to select an appraiser within three business days after the written demand is given from one party to the other. The consequences of the insurer not conducting the inspection within three business days is the same as previously mentioned. “The insurer shall forfeit its right to inspect the damaged vehicle prior to repairs, and negotiations shall be limited to labor and the price of parts.” Finally, if the third-party appraisal differs and the parties cannot agree, then a final “umpire appraiser” can be selected by the party who initially requested an independent appraisal.

Delayed approvals or denials on initial claims and supplements, along with difficulties securing in-person inspections, prompted AASP-MN to introduce legislation last year that would require a response from insurers within three days. As we refine our plan for the coming legislative session, we will watch for any immediate lessons learned or impacts in Rhode Island as this newly passed law is implemented.

State and Federal Spotlight: The Right to Repair

The Right to Repair is an issue increasingly getting more traction in state legislatures and in Congress and will have impacts on the automotive industry and, in some states, already has. The idea behind the right to repair is that if someone owns something, they should be able to either fix it, or take it to a repair person or store of their choosing. This could apply to vehicles, electronics or appliances to name a few. Right to Repair laws require original manufacturers to share manuals and parts.

Several states have passed Right to Repair legislation in the past few years, mainly focused on

1 Rhode Island Senate Bill 0925 (2023). See webserver. rilegislature.gov/BillText/BillText23/SenateText23/ S0925A.pdf

2 Ibid.

3 What You Should Know About Right to Repair. New York Times (2021)

Strange Things: When Uncovering

Questionable Items in Cars Leads to More Questions

It’s an automotive repairer’s job to uncover problems with vehicles and to put them back into working order or pre-accident condition. But what happens when a repairer uncovers something else along the way? Things they didn’t expect to find or something that could put themself – or their business –in harm’s way, such as weapons or drugs?

According to AASP-MN Executive Director Linden Wicklund, who frequently visits member shops, it’s quite a common occurrence.

“The question is: do you have to say something… or can you turn a blind eye?” queries Wicklund, who

has heard multiple accounts of shops discovering weapons or even drugs in vehicles that come into their shops. “I love going into member shops to get the true picture of the challenges and perks of running a shop. One of the frequent remarks is ‘you wouldn’t believe what we find in people’s cars.’ Our members include both mechanical and collision shops in major metro areas and in small towns. Some members are fixing bullet holes on stolen and recovered vehicles, and others are repairing pickup trucks for those who hunt deer. So, there are guns that might have been stolen and ordinary hunting guns that people keep locked

in their trunks instead of in their homes. The loyalty of customers increases the likelihood that they are comfortable with a shop, forgetting they just dropped off a gun with the car. How does a repairer know necessarily if that weapon has been used in crime, and with that, concerns come along that if you don’t say something, are you doing something fundamentally wrong?”

Shops need to understand that they may face consequences if weapons or other items found in cars are not properly dealt with.

“If you find a gun in a car, guns are largely legal, so there may be less of a risk in reaching out to whoever brought in the car; that’s more a business practice decision of whether you want to get the police involved,” suggests Sam Richie of Fryberger, Buchanan, Smith & Frederick. “In Minnesota, the regulations of what you’d run up to with a gun is only if it were loaded and if you were transporting it, so as long as a shop employee isn’t taking the car off premises, they really aren’t running into issues of moving a loaded gun. It comes down to common sense and having some business practice in place as to when you may need to reach out to the customer or authorities.”

Wicklund shared insight based on conversations with law enforcement, legal counsel and the Alliance’s business insurance provider as to what shops should take into consideration or keep in mind, which includes if there are clear policies in the shop regarding employee expectations and understanding of job risks.

“Standard shop insurance should cover customer cars when at the shop but likely won’t cover the contents of the car,” she explained. “Does the shop have a clear customer facing statement about not being liable for missing property? A gun walking away wouldn’t likely be covered by insurance, so turning a blind eye presents lots of risks.”

Another consequence can be in regard to one’s responsibility to society. “What if someone forgot they had a gun in their car, and then you see on the evening news that a little kid found it and the worst happened? There might not be liability, but living with the knowledge that you could have prevented a tragedy is horrible.”

Wicklund has heard from numerous shops who have reported finding drugs in vehicles, fentanyl being among the most common discoveries.

“When it comes to drugs, that’s a different type of contraband, so you may want to skip the client and go directly to the authorities in that scenario,” adds Richie.

“Over the last two to two-and-a-half years, we have been going to, on average, about eight to 10 shops a week testing cars for drugs or biohazard issues at shops,” reports Nate Berg, president and founder of Scene Clean, a specialized crime and trauma decontamination company which works with automotive shops throughout Minnesota. According to Berg, the amount of work they do with shops in relation to drug findings has increased since the pandemic, which is believed to be due to the spike in

continued on pg. 16

stolen cars and the increased crime rate.

Coming in contact with blood is another factor Berg’s team deals with, although he’s found that more shops are “becoming aware of this before exposing their employees to it.

“If the staff isn’t trained in OSHA guidelines for blood pathogens, they are breaking the law by exposing their employees, so they will need to train or call in someone to come in and handle it properly.“

to know how to protect themselves from risk and empower employees with clear education around these topics. And – perhaps more importantly – they need to have policies in writing for customers to sign off on.”

She admits she was shocked to find that only two shops at a recent member meeting said they had a privacy policy for customers to sign. Ideally, shops may want to consider developing a privacy policy.

“As we move forward, there will be more and more information becoming available due to vehicles retaining personal information, so it is smart to think this through now, as it is going to become even more of an issue going forward,” states Richie.

AASP-MN News plans to continue to take a closer look at issues involving things found in cars. If you have dealt with this issue or something similar and want to share with our readers, email alana@grecopublishing.com

Berg says in most cases when his business is called in, they are dealing with what is known as “stolen recovery,” in which case it has already been reported.

“In the case of some of the bigger shops we work with, it’s in their policy to automatically call us if they get a stolen recovery, before they let any of their employees enter it. My advice to the smaller shops that may get a stolen recovery, is to have it tested first before allowing employees to touch it.

“For a time, every single car was coming back positive for either meth or fentanyl, or both,” adds Berg about the severity of the situation. “Now, it’s probably more of a 50/50 mix where it’s coming back positive with drug residue and without. “

Weapons, drugs and blood are all things one can easily see upon inspecting a vehicle, but what about things in cars that aren’t exactly visible, such as the personal information stored in a vehicle’s computer system by way of the car owner’s smartphone?

Telematics has opened up a new door to what manufacturers have access to. Wicklund pointed to a recent New York Post article (bit.ly/nyp9623/) where Nissan admitted that they can collect information about drivers’ sex lives.

“Shops need to understand what their insurance policy covers, which is often just the car, not the contents,” suggests Wicklund. “They also need

When it comes to drugs, that’s a different type of contraband, so you may want to skip the client and go directly to the authorities in that scenario. -Sam Richie

Garagekeepers Liability Coverage

Companies in the business of storing customer vehicles need to be protected. For example, truck drivers who are called to tow a car in the middle of the night frequently must store the car in their shop for the night. If a few hours later, someone breaks into the shop and vandalizes the customer’s vehicle, the driver can be held liable.

Garagekeepers liability coverage is designed to offer protection for business owners who offer towing services or operate service stations, similar to the scenario described above. This coverage protects customer vehicles while they are kept at the business location for parking, storage or to perform maintenance or services in the event of fire, theft, vandalism, explosion or lightning. Two types of garagekeepers liability coverage are available:

1. Direct Primary Coverage: Coverage for a business, even if the loss is not the business’ fault nor are they legally liable.

2. Excess Coverage: Additional coverage over the limit of coverage that the vehicle owner or customer has from his or her own insurance company. This will automatically pay if the customer does not have auto insurance.

Garagekeepers liability coverage is designed for the following:

• Automotive and motorcycle dealers

• Service stations

• Restaurants, hotels and special event operations with valet parking

• Private parking lots and structures and airport parking lots

• Car washes

• Other businesses that accept custody or control of vehicles belonging to others for a fee

Keep these points in mind when determining limits and deductibles:

• Determine coverage limits by considering the average value of vehicles in your care multiplied by the average number of vehicles in your care at any given time. For instance, if the average value of your customers’ vehicles is $30,000 and you tend to have 10 vehicles on hand, then you should select a limit of $300,000.

• You must select a per-vehicle deductible that you must pay in the case of a damaging incident. Then, the insurer covers the remaining amount, up to your limits.

The following exposures are excluded under garagekeepers coverage:

• Contractual obligations

• Theft by the insured

• Defective parts or faulty work

• Loss to sound reproducing equipment, unless it is permanently installed

• Loss to sound receiving equipment such as mobile radios and telephones unless it is installed in the dash or console

• Radar detection equipment

CBIZ understands that unfavorable incidents can occur. Garagekeepers insurance assures that you are adequately protected. Contact Brad Schmid at CBIZ Inc. today for more details (bschmid@cbiz.com or (763) 549-2247).

Oh, My Aching Back

by Janet L. Keyes, CIH

Sore back. Aching shoulders. Painful wrists. That’s the problem with getting older, isn’t it? It’s more likely to be the problem if you repeatedly ask more from your body than it can handle. Most of you have suffered through pains from overexertion. Rest, take ibuprofen for a day or two, and you’re ready to go again.

But what if you can’t rest? What if you need to keep lifting that awkward part to keep doing your job? Hammering a part? Holding a paint sprayer? Kneeling on a concrete floor? That little nagging ache that you can ignore one time becomes a big ache, difficult to ignore. The ibuprofen yields to stronger painkillers. The docs recommend surgery. You can’t do your job anymore. And those stronger painkillers have led to addiction. Depression sets in. And thoughts of suicide arise.

Far-fetched? No. Opioids, used for pain relief, can cause addiction. Those addicted are at higher risk for suicide. The construction industry has recently recognized this problem (see blogs.cdc.gov/ niosh-science-blog/2021/09/14/ opioids-in-construction/). The automotive repair industry doesn’t have the same high risk of suicide – but that doesn’t mean we should ignore the problem.

In fact, it makes good business sense to try to make work easier on your workers’ bodies. If work takes less effort, people can do more in the same amount of time. Efficiency and good ergonomics go hand-in-hand. Reduce the risk of musculoskeletal disorders, and you save twice: you don’t pay for those expensive back or shoulder injuries and employees can get more done.

How can you do that?

Look at your job flow. Where are parts kept? Do employees need to go onto a mezzanine to fetch a part? That takes time – but also

means carrying parts up and down stairs, a task that could easily lead to strains.

Look at work height. Do you provide vehicle lifts in good condition? Or do employees need to jack up vehicles and rely on jack stands and creepers. Do employees need to stand on rickety stepstools and stretch to reach taller vehicles? Or do you provide sturdy and stable platforms? Can they be adjusted to accommodate the different heights of your employees and the different heights of vehicles? One of the goals with good ergonomic design is to have neutral postures, where employees don’t have to bend or twist or stretch to do their jobs.

Look at what other industries and other companies have done to reduce wear and tear. An auto body technician recently showed us his Racatac kneeling sitting creeper, developed, he said, for the flooring industry. It let him kneel comfortably while sanding the side of a car. He could have kneeled on the floor, but that starts hurting pretty quickly and can lead to chronic knee problems. He could have used kneepads, but they’re not always comfortable, and don’t provide the mobility of the creeper. But your technicians provide their own tools! True – but you’re the one who pays the workers’ comp premiums and who has to scramble for workers if one is out because of low back pain. So, it is likely to your benefit to subsidize equipment or tools that make work physically easier. Watch your workers, and talk to them. Look at their body positions when they work. Does your painter’s arms get tired from holding the spray gun? What tasks make their backs or shoulders ache? Do they have ideas to make work easier?

We know what factors prevent musculoskeletal disorders such as sprains, strains, back injuries and shoulder pain.

• Design the job so employees don’t need to lift too much. It isn’t just the weight of objects that determines how much they can safely lift. It’s also the shape and where it’s being lifted to and from. Lifting a 50-pound box with handholds off the back of a delivery truck is easier than lifting a bulky car part with nothing to grab onto from the floor.

• Take advantage of people’s power zone, that area between knees and chest, extending out the length of the forearm. That’s where work should be done, because that’s where people have the most strength and flexibility. That’s also where heavy objects should be stored.

• Encourage neutrality. A neutral posture – head up, looking forward; arms down at sides – puts the least amount of stress on the body. If tools force wrists to bend, the user is more likely to develop wrist problems. If employees need to work overhead, shoulder and neck problems become likely.

• Make the work easier. If it takes less force, produces less vibration, and minimizes repetitive motions, employees will work more comfortably. If they’re more comfortable, they can do more. They’re happier. Productivity goes up, and you’re happier.

Many of the workplace safety measures we want to see don’t provide an immediate payback. You won’t see the hearing damage caused by noise until years later. You don’t see the fires that didn’t occur. Ergonomic improvements are different – even if you can’t see the back aches you prevented,

you can see the improvements in productivity. Good ergonomics = work smarter, not harder. For questions on ergonomics or other safety related questions, contact Carol Keyes at CHESS at (651) 481-9787.

What’s Wrong With This Picture?

The fire extinguisher has its tamper seal in place - it hasn’t been usedbut it’s underpressurized. This is why we encourage monthly checks of extinguishers.

CBIZ is the recommended insurance agency for property & casualty, workers’ compensation and employee benefits coverage for members of AASP-MN. CBIZ has developed a program designed specifically for members of the Alliance which includes:

Property & Casualty - CBIZ and United Fire Group created a policy with forms specific to the garage industry. There is special pricing for AASP-MN members and the opportunity to qualify for a dividend based on the group’s performance. A seven percent dividend totaling over $183,000 was distributed in 2020 to participating members!

CBIZ and United Fire have made this program available to all the contracted United Fire agents in the state of Minnesota. If you or your agent want more information on how to gain access to the program, contact Rick Miller at (612) 810-3314 or rjmiller@unitedfiregroup.com

If your garage operations don’t fit into UFG’s program (i.e., more than incidental towing or auto sales) we have other carriers that can protect your operations.

Workers’ Compensation – With over 20 very competitive carriers including United Fire Group, CBIZ has the flexibility to offer you the best coverage at an affordable price.

CBIZ Payroll & HR Technology provides technology to effectively track time & attendance and pay your employees. CBIZ Payroll doesn’t have contracts, earning your business each and every payroll. AASP members receive a FREE assessment of your payroll/HR processes by emailing or calling Carrie Hobrough at chobrough@cbiz.com or (651) 387-9168.

Employee Benefits - CBIZ, in conjunction with non-CBIZ Benefits planning professionals, offers a full line of employee benefits. We can customize employee benefits plans, focusing on the best coverages that fit budgets of large and small employers and their employees. Benefits include medical, dental, life, disability & voluntary employee paid benefits, such as AFLAC or Colonial Life.

Financial & Accounting – CBIZ is one of the nation’s top 10 accounting and financial services firms. We help our customers with accounting and taxes, government health care consulting, financial advisory, valuation, litigation support, risk & advisory services, real estate advisory services.

Retirement plans – CBIZ Investment & Advisory services focuses on the administration and advisory of employer sponsored retirement plans, both 401(k) and 403(b). Areas of expertise include: fiduciary governance, compliance, investments and participant communication/education. CBIZ works to create a retirement plan environment that will encourage financial wellbeing and best prepare employees for financial success in their retirement years. Contact Brian Winkels at bwinkels@cbiz.com or (612) 436-4615.

Other than noted above, contact Brad Schmid at (763) 549-2247 or bschmid@cbiz.com to set up a point of contact at CBIZ.

AASP-MN MEMBER BENEFIT PROGRAMS

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

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. New Health Insurance Program Coming Soon!

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.

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 allin-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.

AUTO EMPLOYEE ASSESSMENT

Assessment Associates International

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

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

BUSINESS FORMS/CALENDARS

AASP-MN

Contact: Jodi Pillsbury

612-623-1110 / jodi@aaspmn.org

Discounted rates on printed business forms and calendars.

PAYROLL PROCESSING

CBIZ Payroll

Contact: Carrie Hobrough

612-436-4620 / chobrough@cbiz.com

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

SAFETY COMPLIANCE

Complete, Health, Environmental & Safety Services

Contact: Carol Keyes

651-481-9787 / carkey@chess-safety. com

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

LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING AUTOMOTIVE SEMINARS

Contact: Tim Houghtaling

920-866-9813 / tim@ automotiveseminars.com

Discounted pricing to AASP-MN members on all live-online events, as well as on-demand training videos. Automotive Seminars specializes in diagnostic training that provides automotive technicians with knowledge, testing techniques and data interpretation skills needed to diagnose today’s vehicles. The liveonline 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.

SHOP SOFTWARE Condition Now

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

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