January 2015 Volume 9, No. 1 $5.95 www.wmaba.com
ALSO THIS ISSUE LEARNING IN ASHBURN: INSIDE AUDI’S ALUMINUM TRAINING PROGRAM WMABA MEMBERSHIP PROMOTION: GET YOUR QUARTER BACK www.grecopublishing.com
January 2015
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CONTENTS January 2015 35 COVER STORY YOUR NUMBERS ARE IN: INSIDE WMABA’S NEW LABOR RATE SURVEY - PART 1 BY JOEL GAUSTEN
The association reveals the results of a lengthy examination.
NATIONAL NEWS BY JOEL GAUSTEN 18 ATTORNEYS GENERAL TAKE ON STEERING,
Shops aren’t the only ones upset over insurer abuse.
“JUNKYARD” PARTS
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AIRBAG CONTROVERSY EXPLODES INTO MASSIVE RECALL
Faulty products put one manufacturer in the hot seat.
LEGAL PERSPECTIVE 19 POLITICAL BOMBSHELLS SHAPE THE NEW YEAR The State House is a very different place now.
DEPARTMENTS 6
Calendar of Events
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In Memoriam
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Editor’s Message JOEL GAUSTEN
BY ROBERT J. GARAGIOLA
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Executive Director’s Message
JORDAN HENDLER
TECHNICIAN OF THE MONTH 24 DAVE WILSON
Merchant’s Tire and Auto Center technician wins ASE award. BY JACQUELYN BAUMAN
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What’s WMABA Up To? WMABA Membership
Application
President’s Message DON BEAVER
WMABA FEATURE 28 LEARNING IN ASHBURN: INSIDE AUDI’S
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Advertisers Index
ALUMINUM TRAINING PROGRAM
Audi offers revolutionary education in Virginia.
Images © www.thinkstockphoto.com
BY JOEL GAUSTEN
January 2015
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Industry training opportunities and don't-miss events.
CALENDAR OF
EVENTS CLASS LISTINGS January 13, 2015
SECTIONING Of STEEl uNITIzEd STRuCTuRES Harrison Body Works, Richmond, VA PlASTIC & COMPOSITE REPAIR Refinish Solutions, Springfield, VA RACk & PINION & PARAllElOGRAM STEERING SySTEMS Cambridge Auto Body, Cambridge, MD
January 14, 2015 SCRS OPEN MEETING Palm Springs Hilton, Palm Springs, CA For more information, visit www.scrs.com
January 15-16, 2015 COllISION INduSTRy CO NfERENCE (CIC) Palm Springs Hilton, Palm Springs, CA For more information, visit www.ciclink.com
January 22, 2015 WMABA AluMINuM REP AIR dISCuSSION ANd ME MBERSHIP SOCIAl Refinish Solutions, Spring field, VA For more information, visit www.wmaba.com or see faci ng page
January 14, 2015
RACk & PINION & PARAllElOGRAM STEERING SySTEMS N T Auto Body Inc., Alexandria, VA
January 15, 2015
WHEEl AlIGNMENT & dIAGNOSTIC ANGlES Harrison Body Works, Richmond, VA SquEEzE-TyPE RESISTANCE SPOT WEldING Refinish Solutions, Springfield, VA AdHESIVE BONdING Frederick Co. Career & Tech, Frederick, MD
January 20, 2015
MEASuRING Harrison Body Works, Richmond, VA
January 21, 2015
AlTERNATIVE fuEl VEHIClE dAMAGE ANAlySIS & SAfETy Refinish Solutions, Springfield, VA SuSPENSION SySTEMS N T Auto Body Inc., Alexandria, VA
January 22, 2015
MEASuRING Refinish Solutions, Springfield, VA STRuCTuRAl STRAIGHTENING STEEl Harrison Body Works, Richmond, VA WHEEl AlIGNMENT & dIAGNOSTIC ANGlES Cambridge Auto Body, Cambridge, MD AluMINuM ExTERIOR PANEl REPAIR & REPlACEMENT Frederick Co. Career & Tech, Frederick, MD
January 24, 2015
fORd f-150 STRuCTuRAl REPAIR TRAINING COuRSE Refinish Solutions, Springfield, VA
January 27, 2015
COSMETIC STRAIGHTENING STEEl Harrison Body Works, Richmond, VA AdVANCEd STEERING & SuSPENSION SySTEMS dAMAGE ANAlySIS Cambridge Auto Body, Cambridge, MD
January 29, 2015
AuTOMOTIVE fOAMS Harrison Body Works, Richmond, VA
February 3, 2015
AluMINuM ExTERIOR PANEl REPAIR & REPlACEMENT Harrison Body Works, Richmond, VA STRuCTuRAl STRAIGHTENING STEEl Cambridge Auto Body, Cambridge, MD PlASTIC & COMPOSITE REPAIR State Farm Silver Spring, Silver Spring, MD
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January 2015
February 4, 2015
AdHESIVE BONdING N T Auto Body Inc., Alexandria, VA
February 5, 2015
AdHESIVE BONdING Harrison Body Works, Richmond, VA VEHIClE TECHNOlOGy & TRENdS 2015 Automotive Collision Technologies, Randallstown, MD AdVANCEd STEERING & SuSPENSION SySTEMS dAMAGE ANAlySIS Coxton’s Gold Team Collision Center, Yorktown, VA VEHIClE TECHNOlOGy & TRENdS 2015 Southern Collision Center, Chesapeake, VA
February 7, 2015
BluEPRINTING PROCESS & dAMAGE dISCOVERy Tristate Collision Center, Columbia, MD
February 10, 2015
full-fRAME PARTIAl REPlACEMENT Harrison Body Works, Richmond, VA full-fRAME PARTIAl REPlACEMENT Coxton’s Gold Team Collision Center, Yorktown, VA CORROSION PROTECTION Cambridge Auto Body, Cambridge, MD VEHIClE TECHNOlOGy & TRENdS 2015 Canby Motors Collision Repair, Aberdeen, MD
February 11, 2015
CORROSION PROTECTION Refinish Solutions, Springfield, VA
February 12, 2015
full-fRAME PARTIAl REPlACEMENT Refinish Solutions, Springfield, VA full-fRAME PARTIAl REPlACEMENT Radley Chevrolet, Fredericksburg, VA PlASTIC & COMPOSITE REPAIR Kunkel’s, Baltimore, MD STATIONARy GlASS Harrison Body Works, Richmond, VA VEHIClE TECHNOlOGy & TRENdS 2015 Frederick Co. Career & Tech, Frederick, MD SECTIONING Of STEEl uNITIzEd STRuCTuRES Southern Collision Center, Chesapeake, VA
February 17, 2015
WHEEl AlIGNMENT & dIAGNOSTIC ANGlES Keystone Linthicum, Linthicum, MD
BluEPRINTING PROCESS & dAMAGE dISCOVERy Cambridge Auto Body, Cambridge, MD COlOR THEORy, MIxING TONERS & TINTING Harrison Body Works, Richmond, VA
February 18, 2015
AdVANCEd STEERING & SuSPENSION SySTEMS dAMAGE ANAlySIS N T Auto Body Inc., Alexandria, VA AuTOMOTIVE fOAMS Refinish Solutions, Springfield, VA WHEEl AlIGNMENT & dIAGNOSTIC ANGlES Southern Collision Center, Chesapeake, VA
February 19, 2015
AdVANCEd STEERING & SuSPENSION SySTEMS dAMAGE ANAlySIS King Volkswagen, Gaithersburg, MD PlASTIC & COMPOSITE REPAIR Frederick Co. Career & Tech, Frederick, MD AdHESIVE BONdING Parrish Body Shop II Inc., Fredericksburg, VA AdVANCEd STEERING & SuSPENSION SySTEMS dAMAGE ANAlySIS Harrison Body Works, Richmond, VA PlASTIC & COMPOSITE REPAIR Coxton’s Gold Team Collision Center, Yorktown, VA REPlACEMENT Of STEEl uNITIzEd STRuCTuRES Refinish Solutions, Springfield, VA
February 24, 2015
COlOR THEORy, MIxING TONERS & TINTING Coxton’s Gold Team Collision Center, Yorktown, VA SuSPENSION SySTEMS Harrison Body Works, Richmond, VA
February 26, 2015
STEEl uNITIzEd STRuCTuRES, TECHNOlOGIES & REPAIR Harrison Body Works, Richmond, VA AuTOMOTIVE fOAMS Rosner Collision Center, Fredericksburg, VA
www.i-car.com or (800) 422-7872 for info
LOCAL
NEWS
Information and updates from WMABA.
SAVE THE DATE! January 22, 2015
WMABA Presents…
WMABA ALUMINUM REPAIR DISCUSSION AND MEMBERSHIP SOCIAL January 22, 2015 6:00pm Refinish Solutions 5255A Port Royal, Springfield, VA 22031 Join WMABA members, supporters and industry representatives for an exciting evening of socializing, networking and industry information, as well as an eye-opening presentation on aluminum repair implementation in the shop!
MEMBER SOCIAL & BOARD ELECTIONS TO FOLLOW PRESENTATION Questions? Contact Jordan Hendler at (804) 789-9649 / jordanhendler@wmaba.com / www.wmaba.com
In Memoriam: Sue Opferman
On November 25, the I-CAR community said goodbye to Sue Opferman, who passed away at the age of 59. Sue was the wife of longtime I-CAR instructor Gary Opferman and an active, generous supporter of the collision repair industry. Sue loved to travel and experience new places and would often accompany Gary to ICAR Conferences in different cities in order to explore the area. Additionally, she would sometimes assist the area I-CAR committee when they needed a helping hand. “Once, I had to cancel an I-CAR class and Sue called everyone who was registered to make sure they knew the class was canceled,” recalls Gary. “She always encouraged me that what I was doing was important, even knowing I would get home late at night. She was great like that, always having a smile and words of encouragement for anyone she would talk to.” In addition to her husband, Sue is survived by her children Shannon, Kelley and Christopher; siblings Lynn and Mike O’Leary; and grandchildren Taylor, Hailey, Lyrick, Luke, Shelbie, Abbey, C.J., Maggie, Darren and Riley. WMABA and Hammer & Dolly offer the Opferman family our deepest condolences.
January 2015
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Joel Gausten
EDITOR’S
(973) 600-9288 tgpjoel@verizon.net
MESSAGE STRENGTH IN NUMBERS As you already know by looking at this month’s cover, WMABA has unveiled the results of its most recent Labor Rate Survey. As in past years, this extensive project was undertaken to provide shops in the region with legitimate thirdparty data on posted (non-referral program) rates in a given market. This information represents the current status of a collision repair industry untouched by insurer control; this is what shops are charging for non-DRP work in a variety of areas. I encourage you to check out the results beginning on page 35. Additional results from the Survey will be featured in our next issue. If you participated in this important endeavor by answering the association’s call for information, I commend you for taking the time to be a part of something that will only help your industry. The few minutes that you devoted to the Survey are greatly appreciated. If you are one of those shops that Executive Director Jordan Hendler called out in her recent message (“We’re Doing YOU the Favor,” H&D, November 2014) for dodging her requests, I urge you to read this month’s cover story and consider the impact you could have had. WMABA OffICERS PRESIdENT
VICE PRESIdENT
TREASuRER SECRETARy
IMMEdIATE PAST PRESIdENT
don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155 John krauss jkrauss@craftsmanautobody.com 703-534-1818 Barry dorn bdorn@dornsbodyandpaint.com 804-746-3928
BOARd Of dIRECTORS
Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Mark Boudreau (crashdaddy@aol.com) 703-671-2402
Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128
AdMINISTRATION
ExECuTIVE dIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OffICE P.O. Box 3157 • Mechanicsville, VA 23116
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This industry is only as strong as the people in it. Will you be a part of a prosperous future by being a part of association initiatives, or will you allow your inactivity to keep your profession running in place? As 2015 moves forward, please think about ways you can help WMABA and your fellow members improve conditions within the field. Membership in a trade association should never be about simply paying your dues and doing nothing else until renewal time. Think of WMABA as a car: It can get you to where you need to be, but it doesn’t have an “auto driver” button. You are the fuel that keeps WMABA - and your entire profession - running in a positive direction. Don’t just keep your keys in your pocket - use them. H&D
January 2015
STAff
PuBlISHER dIRECTOR Of SAlES EdITOR MANAGING EdITOR ART dIRECTOR OffICE MANAGER
Thomas Greco thomas@grecopublishing.com
Alicia figurelli alicia@grecopublishing.com
Joel Gausten tgpjoel@verizon.net
Jacquelyn Bauman jacquelyn@grecopublishing.com
lea Velocci lea@grecopublishing.com
Sofia Cabrera tgp4@verizon.net
PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2014 Thomas Greco Publishing, Inc.
January 2015
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EXECUTIVE DIRECTOR’S
MESSAGE
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
ANOTHER NEW YEAR WHAT’S YOUR RESOLUTION?
The New Year always gives heed to trying to invoke change, especially in resolving to change something in our lives for the better. What is it about your business that you want to see change during 2015? How could WMABA be the vehicle to make that happen? By answering those two simple questions, we can create a stronger partnership to build a better industry for everyone. Mostly, if you’re having an issue, there are many other repairers out there with the same problem looking for a solution. I’m feeling quite cliché, but how do you actually accomplish a New Year’s resolution? I’ve found there are steps. Not particular ones, but very helpful nonetheless. Write it down. Writing down your resolution makes it real. If you only think about it, it hasn’t had the ability to come to fruition. It needs to own real space. So, electronically or literally, write it into your task list.
Give it a goal. What is a realistic timeframe that you want to see this resolution come about? Is it this year, the next three months or two years down the road? Whatever the end game is in your mind’s eye, give it a number and write it down, too. Give it steps. That old adage that you cannot eat an elephant all in one bite can ring true for your resolution. Identify the steps you can take, one at a time, to get to the result. Write those down in order, then give them completion dates and put them into your calendar with reminders.
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Get help. Identify those people you need to support you in attaining your goal. Collaborate with them and create a team system that can hold the goal accountable. It’s easy to tell yourself that you’ll get to it, but when someone else is involved, it’s harder to let them down in the process. It’s your goal, so you need to make it happen.
Evaluate often. Along the way, you may find that the resolution will change in scope or morph into something completely different. When in the process of a goal, the goal may become a different target. Revising the plan to get the outcome you desire is great. It means that you have adopted the process and are utilizing it to get what you want.
Celebrate the steps. When you work on a goal, you need to allow the celebration of each part. If this is a big goal with many parts, the team may get bogged down in not reaching it because it seems so far off. If you break the resolution into sections, with timelines, when you make a mark, you can make it a big deal. Then everyone involved feels like they are part of something bigger than themselves and are more likely to help you push to the finish line. If WMABA can help you along the way, please feel free to reach out. We’d love to be a part of your success story! Happy resolutioning. H&D
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WHAT’S
The Playbook
UP TO? WMABA MEMBERSHIP PROMOTION:
GET YOUR QUARTER BACK
There has not been a better opportunity to join WMABA in the past 10 years than right now. For the first quarter of 2015, the association is offering a special membership promotion for new members. If you’re reading this, your first benefit is already being realized: Staying up on the news in our area and beyond. You can save $200 off an annual membership ($700 regular price) or get one free quarter (a $195 value) with the first quarter payment. Savings like this have not been available in more than a decade!
Get Your Team Jersey
Supporting WMABA is an investment in the future of your business and your industry. By becoming a member, you are represented in all of the places the Board or executive director goes. Whether at a trade show like SEMA, assisting with the SCRS OEM Technology Summit regarding certified repairs or locally at the state capitol meeting legislators or testifying at a hearing, your interests – and the interests of all repairers – are at the forefront of WMABA’s agenda. Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team.
Get Educated
WMABA offers issue-specific topic-driven education throughout the year. Participation in special events, such as the December 10 limited-seating seminar and tour at the Audi Training Center, offer your business the best opportunities to advance your understanding of changes within our industry.
Find more association updates at www.wmaba.com.
The association is your resource for all things. Whether you have a question about current Labor Rate data, operations, customer interaction, insurer relationships, vendor products or national news, your association is the place to ask first. Through our national relationships, we are able to take issues to the foreground of places such as the Society of Collision Repair Specialists, Collision Industry Conference or to national contacts for insurers and vendors. Locally, we research government regulations and oversight to make sure the repair industry is protected from negative legislation. Represented in both Virginia and Maryland, WMABA proposes and opposes recommended bills that come into the legislature during open session. Also, we work with consumer-related entities, government agencies and other related industry organizations to ensure that the voices of the repairer and their customer are heard. Many repairers take advantage of the knowledge and community that the association provides for navigating situations that arise. A simple phone call or email can circumvent many of our members’ issues.
Call the Game
As a member, you decide your personal level of participation. Do you have an interest in committees that address particular issues about which you feel passionately? Would you want to be a Board member and assist in guiding the direction of the association? How about even sitting on the sidelines so you can focus on your own business? A positive answer to any of these questions is what we’re looking for! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved. H&D The minimum is getting your membership. The upcoming year can start off with your commitment to the betterment of your business and your industry. SIGN UP TODAY!
One Quarter Free!
Save $200 Off Annual Membership or get
WMABA ALUMINUM REPAIR DISCUSSION AND MEMBERSHIP SOCIAL Join WMABA on January 22 in finding out from repairers who are already performing aluminum structural or certified repair some of the lessons they have learned, investments to be made and how to navigate the process to become a certified facility. Additionally, a recap will be given from the Society of Collision Repair Specialists’ “OEM Collision Technology Summit” at SEMA. Some questions that will be addressed are as follows:
How do you get into a certified program? How are those repairers who dedicate themselves to the process differentiating themselves in the marketplace?
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How do they get the return on that investment? What are the key elements that a repairer needs to consider?
The meeting will be on January 22 from 6-8pm and will be hosted at the Refinish Solutions Training Facility, located at 5255A Port Royal in Springfield, VA. Registration information is available on the WMABA website: www.wmaba.com. Also, part of the meeting will be dedicated to WMABA’s annual Board of Directors election and a state-of-the-industry report given by Executive Director Jordan Hendler. H&D
January 2015
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Contact these Ford or Lincoln Mercury dealers for all your parts needs: BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161 Phone: 410-689-3038 Fax: 410-766-1275 www.bobbell.com
PLAZA FORD 1701 BEL AIR RD, BEL AIR, MD 21014 Phone: 410-879-3367 Fax: 410-877-7248 www.plazaford.com
HAGERSTOWN FORD 1714 MASSEY BLVD,HAGERSTOWN, MD 21740 Phone: 800-200-0276 Fax: 301-733-0603 www.hagerstownford.com
WALDORF FORD 2440 CRAIN HWY, WALDORF, MD 20601 Phone: 301-843-3028 Fax: 301-843-0334 e-mail: parts@waldorfford.com www.waldorfford.com
SHEEHY FORD 5000 AUTH RD, MARLOW HEIGHTS, MD 20746 Phone: 301-899-6300 Fax: 301-702-3650 www.sheehyford.com
KOONS FORD OF ANNAPOLIS 2540 RIVA ROAD ANNAPOLIS, MD 21401 Phone: 410-266-3083 Fax: 410-224-4239 www.koonsford.com
TED BRITT FORD 11165 FAIRFAX BLVD, FAIRFAX, VA 22030 Phone: 703-673-2420 Fax: 703-870-7982 www.tedbrittparts.com
© 2014, Ford Motor Company
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NATIONAL
NEWS ATTORNEYS GENERAL TAKE ON STEERING, “JUNKYARD” PARTS As the national independent auto body community begins a new year, it does so with the support of a growing number of elected officials fed up with the idea of steering. Oklahoma Attorney General Scott Pruitt recently made headlines by issuing a strong attack against insurer practices that potentially harm the consumer during the collision repair process. In an official press release, Pruitt issued a warning to Oklahomans regarding the practice of steering, which he defined as, “where insurers strongly push consumers to auto body repair shops that may provide substandard service to consumers.” “It is important to the safety of Oklahomans that insurance companies and repair shops are honest and upfront with their customers about the repair process,” Pruitt said in the statement. “As a consumer, you have the right to know what repairs are being made to your vehicle and the origin of the parts that are being used to repair it. A majority of auto body repair shops and insurance companies are reputable, honest and respect the difficulty of having a vehicle repaired. However, my office will hold accountable any shops or insurance companies who would seek to defraud Oklahomans through the illegal practice of steering. I encourage anyone who feels they have been a victim of such deceptive practices to contact the Attorney General’s Office immediately.” The release noted that Pruitt is looking into reports that certain insurers are coercing Oklahomans into using auto body repair shops that “may use salvaged parts or other substandard materials to make repairs while claiming to use new parts or materials made by the automobile manufacturer.” According to the Attorney General, use of these “aftermarket” parts “voids automobile manufacturer warranties” in many cases and “may not meet manufacturer specifications and potentially could fail in the future.” In related news, some of Louisiana Attorney General James D. “Buddy” Caldwell’s recent comments regarding his lawsuit against State Farm (“Lawsuits & Lost Faith,” H&D October 2014) have drawn the ire of the recycled parts industry. In a statement issued by the Automotive Recyclers Association (ARA), the group took Caldwell to task for what it called “mischaracterizations and disparaging statements” made about recycled auto parts:
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State officials fight on behalf of shops and consumers.
By JOEl GAuSTEN
In public comments related to a recent lawsuit filed by the Louisiana Attorney General’s Office against State Farm Insurance for allegedly steering consumers to Direct Repair providers who must comply with insurer requirements for replacement parts, Attorney General Caldwell is quoted as saying: “In some cases, we’ve found that these parts are nothing more than used junkyard parts.” The Attorney General’s statement leads consumers to believe that salvaged/recycled automotive parts are unsafe and inferior to new original equipment manufacturer (OEM) parts. Recycled, genuine OEM parts meet OEM requirements. They are OEM parts, designed by the OEM and built to meet the OEM requirements for fit, finish, durability, reliability and safety. Attorney General Caldwell’s mischaracterization of recycled automotive parts does a disservice to consumers in Louisiana by seeking to limit their access to safe, affordable and environmentally friendly automobile repairs.
In the release, ARA CEO Michael E. Wilson noted that the West Virginia Supreme Court of Appeals “recently affirmed the use of salvage/recycled OEM crash parts in vehicle repairs.” The Court also found that “neither the West Virginia Automotive Crash Parts Act [nor] Consumer Credit and Protection Act statute prohibited body shops or insurers from utilizing these parts, that aftermarket crash parts and salvage/recycled OEM crash parts are ‘diametrically’ different products and not interchangeable and, moreover, applauded the insurers for using measures to reduce premium costs for their customers.” “The West Virginia ruling is a significant step forward for the professional automotive recycling industry and the increased utilization of genuine, recycled OEM parts,” Wilson said. “Regrettably, not all state attorneys general have done their homework and educated themselves about our industry and the critical role that recycled OEM automotive parts play in the market.” H&D
What’s happening at the State House, in your industry and everywhere in between.
By ROBERT J. GARAGIOlA Managing Attorney, The Law Offices of Alexander & Cleaver
LEGAL
PERSPECTIVE
POLITICAL BOMBSHELLS SHAPE THE COMING YEAR
On election night, voters watched in awe as midterm elections swept across the country, bringing with them surprising changes. The US Senate became a Republican majority body, and both Maryland and Virginia elections were fraught with bombshells! In Maryland, all statewide and county official positions (including governor) were up for election. As you already know, Maryland was caught up in the change and elected Republican Larry Hogan as governor. Even though there were many upsets and surprises on election night, it is important to note that not everything in Maryland radically changed. The General Assembly remains in Democratic control, and the Democrats still have the ability to override a gubernatorial veto. The 2015 session of the General Assembly will kick off on January 14. As is customary after an election, Governor-elect Hogan is in the process of assembling his cabinet and the leaders of the General Assembly are selecting which members will be seated in which committees. We expect some shuffling around of the current General Assembly members, simply because of the sheer number of newly elected officials. We also anticipate that Hogan may ask a handful of currently elected officials to serve as cabinet secretaries. We expect a good number of the senators and delegates in leadership roles to remain in those positions, but we will know for sure when the positions are announced. Virginia elected their governor in 2013. The race for the US Senate between incumbent Mark Warner and GOP challenger Ed Gillespie was the one to watch in November.
The Senate race was much closer than anyone expected, and Warner only won by less than one percent when all the votes were counted. Low turnout can’t be blamed, as the numbers were fairly consistent with recent mid-year elections. Former Representative Eric Cantor’s loss in the primary showed that Virginians were not happy with their elected officials (or the way the federal government is running). All in all, Warner’s stint as governor – where he showed that he could work with both Democrats and Republicans – helped him in this election. Many moderate Democrats, especially in Northern Virginia, are disconnected or disenfranchised from their party. Arlington County elected the first non-Democrat to the Arlington County Board seat since 1983. (John Vihstadt, an Independent, won handily.) Maryland also elected a new attorney general in November. Brian Frosh won the seat vacated by Attorney General Doug Gansler. (Gansler ran in the Democratic primary for governor and lost.) Brian served five terms in the Maryland Senate where he chaired the Senate Judicial Proceedings Committee. Frosh, a Montgomery County senator, was known for his support of progressive issues. He was a strong environmentalist and advanced legislation having to do with privacy and consumer protection. He will be “the people’s lawyer.” H&D Robert J. Garagiola is the president of the Government Relations Division and the managing attorney of Alexander and Cleaver’s Rockville office. He has more than 20 years of legal, legislative and advocacy experience. Rob provides strategic advice and legal counsel to our clients in every sector. For political, legislative and legal advice, please contact him at (410) 974-9000. January 2015
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NATIONAL
Safety risks affect millions of American drivers.
By JOEl GAuSTEN
NEWS AIRBAG CONTROVERSY EXPLODES INTO MASSIVE RECALL What happens when millions of vehicles are recalled for a potential defect that could be fatal for anyone behind the wheel? The American public is about to find out. Takata Corp., an airbag manufacturer based in Japan, is at the center of a firestorm surrounding the safety of driver-side frontal bags that they manufactured for a variety of vehicles in model years 2002 through 2008. According to industry reports, environmental factors including high humidity could deteriorate the propellant used in the bag, leading to excessive combustion during deployment and the potential for the inflator housing to rupture. According to a December 2 Consumer Reports feature, “four fatalities and more than 100 injuries have been linked to the Takata airbags...[In] some cases the incidents were horrific, with metal shards penetrating a driver’s face and neck.” Although a recall was initially established to address 14 million vehicles worldwide (including eight million in a number of nonWMABA “high humidity” states in the US), the National Highway Traffic Safety Administration (NHTSA) is now calling for a nationwide recall that could affect 20 million or more automobiles in America, based on a recent investigation into a vehicle that suffered an airbag explosion away from the initial high-humidity target area. (A September 11 article in the New York Times reports that in December 2009, a Honda Accord driven by a 33-year-old Gurjit Rathore hit a mail truck in Richmond, VA. A lawsuit filed by Rathore’s family claimed that she bled to death after being hit with shrapnel in the airbag explosion.) Additionally, a November 18 announcement from the agency detailed some of its demands to Takata and the automakers that used the company’s products:
As part of these efforts and its ongoing investigation into both the defect and the scope of the recalls, the agency also issued a General Order to Takata and all [10] of the vehicle manufacturers that use Takata airbag inflators – BMW, Chrysler, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota – requiring each manufacturer to file, under oath, a detailed report and produce all related documents about completed, ongoing or planned testing of Takata inflators outside the current regional recall areas. The agency is demanding this information to compel Takata and the affected industry to be frank with not only NHTSA, but the American public, as to what testing and additional steps they have done and plan to do to control and mitigate the risk associated with Takata’s defective inflators.
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Additionally, NHTSA issued a Special Order to Takata, the second the agency has issued to the manufacturer regarding this defect, compelling it to provide, under oath, documents and detailed information on the propellant used in Takata’s inflators. In recent days, Takata has publicly conceded that it changed the chemical mix of its airbag inflator propellant in newly designed inflators. As part of its ongoing investigation, the agency will analyze the information received to determine if the chemical composition of Takata’s propellant mix may be a cause and/or contributing factor in the airbag inflator ruptures. As this issue of Hammer & Dolly went to press, CBS News reported that Takata refused to comply with the expanded recall demand, instead passing along the decision to the affected vehicle manufactures. Toyota Motor Corp. and Honda Motor Co. have called for an industry-wide investigation, while Honda is said to be “seriously considering” a nationwide recall. Nissan refused comment at press time due to the issue still being under investigation, while Toyota announced in a statement that it will ask the industry to hire an independent engineering company, with the affected companies sharing results to figure out recall repairs. General Motors, Nissan, Subaru, Chrysler and Ford have stated their willingness to cooperate. A Congressional subcommittee hearing on the Takata recall was also pending at press time. Hammer & Dolly will follow this story as it develops. H&D
Executive Director’s Thoughts
The airbag of a vehicle is considered the “poster child” of safety. For there to be these issues that so many manufacturers are facing, it is good that they have a system in place to review the problems and recall if needed. - Jordan Hendler
January 2015
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TECHNICIAN OF
Hammer & Dolly chats with the WMABA community’s best and brightest.
THE MONTH
By JACquElyN BAuMAN
DAVE WILSON
If you would like to nominate someone as Technician of the Month, please contact Hammer & Dolly Editor Joel Gausten at tgpjoel@verizon.net
It is estimated by the US Bureau of Labor Statistics that nearly 605,000 people across the country are employed in the automotive repair industry. In such a densely populated field, recognition for one’s success can often feel like a scarcity. However, the National Institute for Automotive Service Excellence (ASE), a non-profit organization created to improve the status and education of the field, recently recognized a record amount of individuals for their hard work and dedication to their craft. On November 19, the Board of Governors for ASE met at the Hyatt Regency Pier 66 in Ft. Lauderdale, FL for their Technicians Awards Banquet. The organization, founded in 1972, distributed a record-breaking 47 awards to various technicians and educators for high scores on ASE Certification tests, superior performance and participation in community service, among other factors. Dave Wilson of Merchant’s Tire and Auto Center in Dundalk, MD was one of the technicians recognized for his passion for the industry. ASE Instructor of the Year Award After completing two years of automotive training in high school, Wilson was hired at Bestowed to Beno Rubin Merchant’s Tire and Auto Center and participated in their training program. Dave Wilson was not the only “My dad always worked with cars, so I just followed in his footsteps,” Wilson recalls. “I Washington Metropolitan individual started at Merchant’s as a tire changer, worked my way up to technician and have worked here to be recognized by ASE for his efever since.” forts in the automotive repair field. When asked what he liked best about his line of work, without hesitation he cited helping Receiving the Byrl Shoemaker/ASE people. Industry Education Alliance Instructor “I love when I can be of assistance in solving people’s problems,” Wilson shares. “It’s a of the Year award, sponsored by the good feeling when you can help someone and earn their trust.” Even though Merchant’s Tire and National Automotive Technicians EdAuto Center is a large chain throughout Maryland, Wilson’s name is known at many of the ucation Foundation (NATEF) was branches for his longevity and continued dedication to his craft. Beno Rubin, director of the TidewaWilson’s work ethic makes him stand out from the thousands of others who do the same ter Community College Regional Autype of work across the country. His advice for up-and-coming technicians who want to succeed tomotive Center in Norfolk, VA. The in this field is simple: award, one of three educational “Get as much training as you can. Newer cars are a lot different than what they used to be.” awards distributed at the ceremony, H&D recognizes those who have made exceptional contributions to furthering the future of the industry. Rubin is a highly trained technician and teacher, holding ASE certifications as Master Automotive Technician (A1A9), Advanced Level Engine Performance Certification (L1) and Licensed Refrigerant Recovery. He also served for eight years as an automotive technician with both Toyota and Lexus. Rubin humbly contributes his success and his reception of this award to his staff. “I’m just the director,” he says. “It’s my co-workers who really deserve the credit.” In an ever-evolving 2014 ASE Award Winner Group Photo: front row (l to R): Steve Christy, Tony Crescioni, Vu Nguyen, field, the training of new technicians Dan Tomanski, Fred Short, Dan Welser, Collin Fluckiger, Beno Rubin, John Sloan; 2nd Row (l to R): Jeff is one of the most important aspects Kowal, Larry Sax, Brian Burgard, Gerald Gann, MSgt. Robert Forbes, Jamie Bullis, Ed Kiekover, Mike of this industry, and Beno Rubin conYoung, Erich Beer, Keith Young; 3rd Row (l to R): Darrell Sargent, Matt Spurgeon, Randy Nussler, Gerry tinues to look forward at the future of Wolfe, John Cory, John Boudreaux, Darrin Morrison, John Zeiss; 4th Row (l to R): Jeff Schlecht, Dean Peterson, Kevin Reyer, Bill Caudill, dave Wilson, George Pavlos, Bobby Sowards, Mark Armbrecht; 5th automotive repair. H&D Row (l to R): Brad Greer, Pat Meyer, Greg McReynolds, Greg Roehl, Bob Stock, Jim Hampe, Shane Schultz; Top Row (l to R): Jason Gruber, Joe Grenchik, Ron Knuckles, James Foulk, Brett Lanpher
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WMABA
FEATURE Inside Audi’s Aluminum Training Program or the past several months, WMABA has worked hard to educate members and Hammer & Dolly readers on some of the major trends impacting the world of aluminum repair. On December 10, the association’s goal of bringing real-world education to the Washington Metropolitan automotive repair industry reached heights unattained by most other groups. During an unprecedented event that drew attendance from generations of WMABA members, Audi opened the door to its extensive Training Center in Ashburn, VA for an exclusive, intimate look inside the facility and an extensive overview of what technicians need to do to become Audi aluminum certified. WMABA Executive Director Jordan Hendler thanked Audi for welcoming the WMABA community to their Training Center to help them seize the opportunity to provide professional aluminum repairs for the motoring public. “We’re proud that our association is within the region that Audi trains the world’s collision repair technicians,” she said. “If you’re not part of the Audi program, this is an amazing opportunity to come in and see where the training takes place, get some insight into what it means to be an Audi technician and know what goes into being a certified repair facility.”
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For nearly two hours, Audi Collision Programs & Workshop Equipment Specialist Mark Allen and Collision Repair Training Instructor Shawn Hart discussed the inner workings of Audi’s current program, including tool and equipment standards, student obligations, the testing structure and more. With the technical and educational demands surrounding collision repair at an all-time high, Audi has set out to provide the field with the tools and knowledge it needs to repair the manufacturer’s vehicles safely and professionally. “[An Audi vehicle] came off the line as a five-star crash rated car,” offered Allen. “When you hand it back, it should be a five-star crash rated car. No questions.” To help technicians maintain the level of excellence required to repair its vehicles, Audi currently offers two levels of training - steel and aluminum. Before a student can enroll in either course, he or she must pass basic I-CAR requirements. “We partner with I-CAR heavily,” Allen said. “We think it’s great foundational learning; it gives the candidates a base of what they should know when they come here...You can’t come to an aluminum class until you’ve done all your steel. You can’t do your steel classes until you’ve done all your I-CAR.” To become Audi-certified for aluminum repair and welding, a
WMABA offers OEM education straight from the source. technician must attend a 10-day course at the Ashburn location. The first five days involve Aluminum Welding Theory and Practice, which tests each student’s ability to perform a series of welds of varying degrees of difficulty. “We give them a fairly comprehensive exam,” explained Hart. “There are a number of welds that they have to perform during the week; there’s a weld they have to perform while there is actually a third-party inspector here.” One of these test welds is performed on a u-shaped casting, which is then shipped down to a testing facility in Atlanta to be x-rayed. Hart receives the results by the end of the first week and is able to share them with each student. “We’re able to tell the technician on that Friday when the class is over for the welding portion whether he or she passed or failed,” he said. “The good news is, if they had a failing weld, we can actually see why it failed. Then, the technician has the chance to actually re-do a new casting.” For the second week of the course, students apply their theory and practice to an actual Audi A8 body. Once the student passes the 10-day program and is Audi-certified, they receive a pair of the same red Audi overalls that are worn by factory workers on the line at the Audi R8 factory. The Audi Aluminum Welding & Structural Repair Certification 10-Day Course costs $3,000 per participant, not including the cost of travel, lodging and missed
By JOEl GAuSTEN
WMABA repairers gathered for an in-depth overview of Audi's aluminum repair education and authorization opportunities at the automaker's Training Center in Ashburn.
January 2015
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WMABA FEATURE productivity at the shop. Because constant practice is necessary for a technician to stay on top of his or her skills with aluminum, Audi requires a four-day re-certification course every two years at $1,500 per participant. The fees collected by students in the program go towards covering the high cost of the tools and equipment used in the training, including the approximate 41 pounds of aluminum each student will go through during the 10-day course. Students who achieve re-certification are presented with an official red Audi jacket signifying their inclusion into an elite group of automotive repairers. As a way to emphasize the importance of featuring real Audi vehicles in the training course, Allen directed attendees’ attention to the special A8L in the training room. This vehicle has proven to be a tremendous asset to Audi instructors looking to demonstrate the importance of writing a proper aluminum repair estimate. “This car is worth more to me than any value you could put on it,” proclaimed Allen. “We’ve had the top insurers come in here and look at this car, and we’ve had discussions on what you should write versus what you saw.
“[The A8L] carried the loading of the impact down through the frame rails and protected the occupants the way it was designed to,” Allen added. “But if you look at the car on the street and you weren’t a shop that was very savvy, you would have written one of the worst estimates ever and had a huge supplement.” Despite what an estimator might see at first glance, the door gap on the right side was 2.5 millimeters, while the gap on the left side was 1.25 millimeters. Additionally, the car had T6 heat-treated aluminum. “You do not pull heat-treated aluminum; it cracks,” insisted Allen. “If I were writing this on the street or didn’t know what I was talking about, I would have done a mount/measure/pull and a $69.95 four-wheel alignment and sent it off.” With all eyes on the car, Allen noted that the curtains that go around the vehicle were designed to reflect the light from the floor and offer the same illumination that is available at the Audi factory – the best possible lighting for a technician to have when performing repairs and welding. This was just one example of the high level of care that Audi puts into its vehicles. Here’s another tidbit: Audi develops its repair procedures for continued on page 42
Attendees got up close and personal with an A8l while checking out Audi’s extensive Training Center on december 10.
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January 2015
A real-world look at the financial health of the industry.
COVER
By JOEl GAuSTEN
STORY
YOUR NUMBERS ARE IN: Inside WMABA’s New Labor Rate Survey – Part 1 What is the current financial health of the Washington Metropolitan auto body industry? Let’s find out. In an effort to gain critical insight into the rates charged by shops in its member states, WMABA spent the fall of 2014 conducting a far-reaching Labor Rate Survey. Focusing on greater areas of interest than ever before (with results split between this issue and next), the association worked to offer a more comprehensive overview of rates, trends and procedural practices than what was presented in the 2012 and 2013 Surveys. (Questions are listed at right.) Like previous installments, the results of this most recent Survey are reflected in eight different regions: The Baltimore area, Annapolis area, Hagerstown area, Washington DC area, Virginia Beach area, Charlottesville area, Richmond area and Roanoke area. continued on page 40
WHAT IS yOuR RETAIl HOuRly BOdy lABOR RATE? WHAT IS yOuR RETAIl HOuRly fRAME/ STRuCTuRAl lABOR RATE? WHAT IS yOuR RETAIl HOuRly PAINT/ REfINISH lABOR RATE? WHAT IS yOuR RETAIl HOuRly PAINT MATERIAl RATE?
dO yOu uSE A PAINT & MATERIAl CAlCulATOR SuCH AS PMC lOGIC, MITCHEll RMC OR PAINT lOGIC? (yES/NO) WHAT IS yOuR RETAIl HOuRly MECHANICAl lABOR RATE? dO yOu HAVE A CERTIfIEd AluMINuM STRuCTuRAl REPAIR AREA? (yES/NO)
WHAT IS yOuR dAIly STORAGE RATE? (INSIdE & OuTSIdE)
WHAT IS THE TOTAl NuMBER Of TECHNICIANS EMPlOyEd (BOdy, PAINT ANd MECHANICAl)?
From aluminum repair to the use of a P&M calculator, WMABA investigates the practices that define today's auto body marketplace.
WHAT IS THE SquARE fOOTAGE Of yOuR COllISION fACIlITy? WHAT IS THE TOTAl NuMBER Of ESTIMATORS EMPlOyEd? WHAT IS THE TOTAl NuMBER Of OffICE STAff EMPlOyEd?
January 2015
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REGION 1 BALTIMORE AREA
BALTIMORE COUNTY, MD CARROLL COUNTY, MD CECIL COUNTY, MD HOWARD COUNTY, MD THE CITY OF BALTIMORE, MD
Range
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
Square Feet # of Techs # of Estimators # of Office Staff
2014
$42 - 52 $42 - 68 $28 - 50 $26 - 36 $76 - 120 $25 - 120 $25 - 55
2013
$40 - 48 $45 - 85 $40 - 48 $25 - 32 $75 - 129 $25 - 80 $25 - 55
1,500 - 68,000 1 - 28 2 - 18 1-6 1 - 11
2012
$40 - 75 $40 - 88 $26 - 60 $20 - 42 $65 - 129 $25 - 150 $15 - 75 1 - 15
2014 Ratio of office staff to technicians 5 to 8
Average
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
2014
$44.07 $52.93 $43.95 $29.11 $96.96 $56.70 $39.75
Square Feet # of Techs # of Estimators # of Office Staff
12,730 6.76 2.06 2.21
Paint Calc.
2014 10.53%
HARFORD COUNTY, MD 2013
2012
$43.07 $52.05 $43.13 $27.65 $94.95 $46.75 $36.86
Change (from 2013)
$43.64 $51.04 $42.42 $27.26 $90.30 $46.04 $36.07
12,381.13 7.1
11,670.44 5.75
2.33% 1.69% 1.9% 5.28% 2.12% 21.27% 7.83%
2.82% -4.32%
% “YES” to Yes/No Question 2013 12.7%
2012 16.0%
The overall percentage of those surveyed who have an operating dedicated structural aluminum repair area is: 5.95% REGION 2 ANNAPOLIS AREA
ANNE ARUNDEL COUNTY, MD CALVERT COUNTY, MD CAROLINE COUNTY, MD MD KENT COUNTY, MD QUEEN ANNE’S COUNTY, MD TALBOT COUNTY, MD
Range
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff
2014 $42 - 48 $48 - 68 $42 - 48 $26 - 32 $70 - 130 $35 - 75 $35 - 55
2013 $40 - 48 $45 - 65 $40 - 48 $24 - 34 $65 - 115 $25 - 70 $20 - 55
1,800 - 44,000 3 - 31 3 - 17 1-6 1 - 10
2012 $40 - 52 $42 - 85 $40 - 52 $16 - 32 $50 - 140 $25 - 100 $20 - 60 1 - 25
2014 Ratio of office staff to technicians 3 to 5 36
January 2015
Average
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
2014 $44.94 $53.94 $43.88 $29.53 $97.12 $49.69 $41.18
2013 $43.80 $49.62 $43.80 $27.45 $92.36 $45.69 $36.83
DORCHESTER COUNTY,
Square Feet # of Techs # of Estimators # of Office Staff
14,358 7.375 2.19 2.27
12,843.18 7.7
Paint Calc.
2014 11.76%
2013 29.2%
2012 $43.51 $51.41 $43.44 $27.11 $91.33 $44.86 $35.13
Change (from 2013) 2.6% 8.7% 0.18% 7.58% 5.15% 8.76% 11.8%
16,701.43 11.8% 7.31 -4.22%
% “YES” to Yes/No Question 2012 15.4%
REGION 3 HAGERSTOWN AREA
ALLEGANY COUNTY, MD CLARKE COUNTY, VA FREDERICK COUNTY, MD FREDERICK COUNTY, VA GARRETT COUNTY, MD LOUDOUN COUNTY, VA WARREN COUNTY, VA WASHINGTON COUNTY, MD
Range
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
2014 $42 - 65 $48 - 80 $42 - 65 $28 - 48 $60 - 100 $25 - 75 $12 - 50
2013 $40 - 50 $45 - 110 $28 - 50 $20 - 44 $55 - 105 $20 - 80 $20 - 65
Square Feet # of Techs # of Estimators # of Office Staff
1,200 - 30,000 2 - 17 1-15 1-4 1 - 10
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
$45.26 $57.91 $45.26 $30.78 $83.13 $51.89 $38.86
Average
Square Feet # of Techs # of Estimators # of Office Staff
2014
11,197.55 6.61 1.96 1.67
2013
$43.70 $55.19 $43.04 $29.00 $86.06 $54.26 $45.19
12,692.67 7.6
2012 $40 - 52 $44 - 99 $28 - 52 $24 - 44 $44 - 105 $20 - 85 $20 - 65
$43.59 $55.27 $42.92 $29.08 $81.57 $49.43 $39.86
15,570.00 8.16
Change
(from 2013)
3.56% 4.92% 5.17% 6.14% -3.40% -4.37% -14.01%
-11.78% -13.36%
2014 Ratio of office staff to technicians 5 to 9 % “YES” to Yes/No Question Paint Calc.
2014 21.74%
2013 11.1%
2012 22.9%
ALEXANDRIA CITY, VA ARLINGTON, VA CHARLES COUNTY, MD CULPEPER COUNTY, VA FAIRFAX COUNTY, VA FAUQUIER COUNTY, VA FREDERICKSBURG CITY, VA KING GEORGE COUNTY, VA MONTGOMERY COUNTY, MD PRINCE GEORGE’S COUNTY, MD PRINCE WILLIAM COUNTY, VA RAPPAHANNOCK, VA SPOTSYLVANIA COUNTY, VA STAFFORD COUNTY, VA ST. MARY’S COUNTY, MD THE CITY OF WASHINGTON, DC WESTMORELAND COUNTY, VA
Range
1 - 20 2012
REGION 4 WASHINGTON, DC AREA
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
2014 $42 - 50 $42 - 88 $30 - 50 $26 - 35 $65 - 132 $35 - 125 $20 - 85
Square Feet # of Techs # of Estimators # of Office Staff
1,600 - 66,000 1 - 37 1 - 37 1-9 1-11
Average
2014
2013 $40 - 55 $40 - 100 $26 - 55 $22 - 45 $50 - 130 $20 - 150 $20 - 100
2012 $38 - 50 $38 - 90 $25 - 50 $18 - 95 $28 - 128 $16 - 100 $25 - 100 1 - 57
2013
2012
Change
(from 2013)
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
$44.42 $53.54 $44.01 $30.19 $96.38 $59.94 $50.60
$43.59 $52.79 $43.34 $29.38 $91.88 $53.55 $46.05
$43.35 $51.67 $42.80 $28.89 $92.44 $55.02 $45.67
1.90% 1.42% 1.54% 2.75% 4.90% 11.93% 9.87%
Square Feet # of Techs # of Estimators # of Office Staff
14,088 7.67 2.13 2.15
14,885.15 8.9
14,646.36 -5.36% 9.96 -14.14%
2014 Ratio of office staff to technicians 5 to 9
% “YES” to Yes/No Question
Paint Calc.
2014 14.12%
2013
23.9%
2012 29.4%
January 2015
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REGION 5 VIRGINIA BEACH AREA
ACCOMACK COUNTY, VA CHESAPEAKE CITY, VA FRANKLIN CITY, VA GLOUCESTER COUNTY, VA HAMPTON CITY, VA ISLE OF WIGHT COUNTY, VA MATHEWS COUNTY, VA NEWPORT NEWS CITY, VA NORFOLK CITY, VA NORTHAMPTON COUNTY, VA PORTSMOUTH CITY, VA SOMERSET COUNTY, MD SOUTHAMPTON COUNTY, VA SUFFOLK CITY, VA SURRY COUNTY, VA VIRGINIA BEACH CITY, VA WICOMICO COUNTY, MD WORCESTER COUNTY, MD YORK COUNTY, VA
Range
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
Square Feet # of Techs # of Estimators # of Office Staff
Average
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff
2014 $42 - 48 $45 - 65 $42 - 48 $28 - 35 $65 - 98 $25 - 65 $25 - 50
2013 $40 - 55 $40 - 85 $28 - 60 $22 - 34 $40 - 110 $15 - 100 $10 - 50
3,000 - 22,000 1 - 20 1 - 28 1-4 1-5 2014 $44.59 $54.62 $44.03 $30.82 $85.83 $39.62 $34.57
9,308.7 6.34 2.04 2.11
2012 $42 - 55 $42 - 85 $32 - 55 $25 - 44 $30 - 108 $15 - 100 $15 - 85 1 - 20
2013 $44.27 $52.78 $44.76 $29.35 $84.51 $40.50 $31.69
11,228.29 8.0
2012 $44.41 $56.63 $44.17 $30.28 $82.50 $42.69 $33.54
12,681.69 6.95
Change (from 2013) 0.72% 3.48% -1.62% 5.02% 1.56% -2.17% 9.07% -17.10% -20.75%
2014 Ratio of office staff to technicians 2 to 3 % “YES” to Yes/No Question Paint Calc.
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2014 13.79%
2013
25.0%
2012 22.0%
January 2015
REGION 6
CHARLOTTESVILLE AREA
ALBEMARLE COUNTY, VA AUGUSTA COUNTY, VA BUCKINGHAM COUNTY, VA CHARLOTTESVILLE CITY, VA FLUVANNA COUNTY, VA GREENE COUNTY, VA HARRISONBURG CITY, VA LOUISA COUNTY, VA MADISON COUNTY, VA NELSON COUNTY, VA ORANGE COUNTY, VA ROCKINGHAM COUNTY, VA SHENANDOAH COUNTY, VA
Range
2014 Body Labor $44 - 50 Frame Labor $50 - 75 Paint Labor $42 - 50 Paint Material $30 - 42 Mechanical Labor $50 - 85 Inside Storage $35 - 75 Outside Storage $10 - 50
2013 $44 - 50 $46 - 75 $44 - 50 $32 - 46 $55 - 95 $20 - 100 $10 - 50
2012 $42 - 45 $50 - 80 $35 - 45 $28 - 35 $50 - 95 $25 - 75 $20 - 65
Square Feet # of Techs # of Estimators # of Office Staff
2,400 - 15,000 1 - 10 1 - 15 1-2 1-5
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
$47.47 $63.71 $46.59 $35.00 $70.38 $49.58 $36.65
$45.33 $61.17 $45.33 $33.83 $70.24 $51.92 $36.25
$44.28 $58.00 $43.72 $31.83 $70.33 $46.88 $38.13
Square Feet # of Techs # of Estimators # of Office Staff
7,150 4.76 1.65 1.83
7,307.69 4.7
13,158.33 -2.16% 5.61 2%
Average
2014
2013
1 - 18
2012
Change (from 2013) 4.71% 4.16% 2.77% 3.45% 0.21% -4.51% 1.10%
2014 Ratio of office staff to technicians 3 to 4
% “YES” to Yes/No Question
Paint Calc.
2014 17.65%
2013
16.7%
2012 16.7%
REGION 7 RICHMOND AREA
AMELIA COUNTY, VA BRUNSWICK COUNTY, VA CAROLINE COUNTY, VA CHARLES CITY COUNTY, VA CHARLOTTE COUNTY, VA CHESTERFIELD COUNTY, VA CUMBERLAND COUNTY, VA DINWIDDIE COUNTY, VA ESSEX COUNTY, VA GOOCHLAND COUNTY, VA GREENE COUNTY, VA HANOVER COUNTY, VA HENRICO COUNTY, VA JAMES CITY COUNTY, VA KING AND QUEEN COUNTY, VA KING WILLIAM COUNTY, VA LANCASTER COUNTY, VA LUNENBURG COUNTY, VA MECKLENBURG COUNTY, VA NEW KENT COUNTY, VA NORTHUMBERLAND COUNTY, VA NOTTOWAY COUNTY, VA PETERSBURG CITY, VA POWHATAN COUNTY, VA PRINCE EDWARD COUNTY, VA PRINCE GEORGE COUNTY, VA RICHMOND CITY, VA RICHMOND COUNTY, VA SUSSEX COUNTY, VA
Range
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff
2014 $42 - 50 $45 - 68 $42 - 50 $30 - 42 $60 - 119 $25 - 95 $20 - 65
2013 $42 - 56 $48 - 78 $32 - 56 $26 - 42 $52 - 110 $20 - 100 $20 - 50
2012 $42 - 65 $44 - 75 $32 - 65 $15 - 45 $52 - 106 $25 - 85 $15 - 56.25
1,400 - 118,000 1 - 30 1 - 22 1-4 1-3
1 - 19
2014 Ratio of office staff to technicians 5 to 8
REGION 8 ROANOKE AREA
Average
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
2014 $44.73 $57.00 $44.56 $34.15 $83.46 $45.13 $37.24
2013 $44.16 $56.66 $43.62 $32.56 $80.10 $47.22 $37.31
Square Feet # of Techs # of Estimators # of Office Staff
10,241.25 5.52 1.67 1.78
15,851.61 6.3
Paint Calc.
2014 10.42%
2013 12.1%
2012 $45.34 $57.64 $44.96 $32.86 $80.98 $43.82 $35.63
Change (from 2013) 1.29% 0.60% 2.15% 4.88% 4.20% -4.43% -0.18%
11,656.52 -35.39% 6.68 -12.95%
% “YES” to Yes/No Question
2012 24.3%
ALLEGHANY COUNTY, VA AMHERST COUNTY, VA APPOMATTOX COUNTY, VA BATH COUNTY, VA BEDFORD COUNTY, VA BLAND COUNTY, VA BOTETOURT COUNTY, VA BRISTOL, VA BUCHANAN COUNTY, VA CAMPBELL COUNTY, VA CARROLL COUNTY, VA CITY OF SALEM, VA COVINGTON CITY, VA DANVILLE CITY, VA DICKENSON COUNTY, VA FLOYD COUNTY, VA FRANKLIN COUNTY, VA GILES COUNTY, VA GRAYSON COUNTY, VA HALIFAX COUNTY, VA HENRY COUNTY, VA HIGHLAND COUNTY, VA LEE COUNTY, VA LYNCHBURG CITY, VA MONTGOMERY COUNTY, VA NORTON CITY, VA PAGE COUNTY, VA PATRICK COUNTY, VA PITTSYLVANIA COUNTY, VA PULASKI COUNTY, VA ROANOKE COUNTY, VA ROCKBRIDGE COUNTY, VA RUSSELL COUNTY, VA SCOTT COUNTY, VA SMYTH COUNTY, VA TAZEWELL COUNTY, VA WASHINGTON COUNTY, VA WISE COUNTY, VA WYTHE COUNTY, VA
Range
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff
2014 $42 - 48 $50 - 75 $34 - 48 $30 - 42 $55 - 105 $25 - 75 $15 - 55
2013 $40 - 55 $44 - 96 $30 - 55 $24 - 42 $50 - 139 $20 - 125 $20 - 75
2,000 - 38,000 1 - 18 1 - 40 1-6 1-4
2012 $27.50 - 50 $44 - 75 $27.50 - 50 $28 - 44 $27.50 - 92 $20 - 100 $10 - 50 1 - 11
2014 Ratio of office staff to technicians 4 to 7
Average
Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage
2014 $45.58 $58.58 $34.93 $33.88 $70.47 $48.04 $36.67
2013 $44.01 $54.42 $43.64 $30.46 $83.14 $53.44 $42.64
Square Feet # of Techs # of Estimators # of Office Staff
8,538.04 5.37 1.72 1.41
9,798.18 6.3
Paint Calc.
2014 15.00%
2013
2012 $43.34 $55.54 $42.64 $32.38 $63.55 $44.82 $30.52
22,442.97 3.86
Change (from 2013) 3.57% 7.65% -19.96% 11.22% -15.24% -10.10% -14.01%
-12.86% -15.07%
% “YES” to Yes/No Question 12.8%
2012 18.4%
January 2015
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COVER
STORY Not every collision repair facility is the same, nor do they have the same way to calculate a rate – or charge for it. Looking at the overall information derived from this first part of the Survey, WMABA Executive Director Jordan Hendler notes that much of the data is reminiscent of past endeavors – especially when considering a customary +/-5 percent accuracy for the results. “Similar to the two years prior, we are seeing virtually no change across the board, with the exception of a few sporadic categories in some areas of the region,” she reports. “As we’ll report in the next issue where we delve into the remainder of the survey, the industry response is that the general economic state is well below average.” Additionally, the Survey results indicate that aluminum vehicle repair – one of the hottest topics to hit the national industry in recent times – has yet to make a considerable impact among shops in the WMABA region. “There are still only a few shops that are already participating in the structural aluminum repair part of the business,” offers Hendler. “It sounds as though many are in the process or not interested, when follow-up was made to those who expressed interest in that part of the Survey. To forecast, I think that next year, or even the following, will possibly have an increased number.” Despite the area industry’s apparent reluctance to embrace aluminum at this time, Hendler notes that the Survey still offers some positive food for thought. “The ranges have gotten a little wider in some categories, which may be attributable to individual repairers determining their own Labor Rate based on their accounting principles and costs,” she explains. “They may be looking more inward - rather than to the rest of the marketplace - to determine what their own rate of repair categories would be.” The issues surrounding paint and material reimbursement is also showcased in the Survey, with the Washington, DC region being of particular interest: While the use of a paint calculator went down, the Paint Labor & Material Rate continues to increase slightly each year, making one suspect that this might be the result of insurers raising their rates to get shops away from utilizing a P&M cost accounting program.
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“It would be speculation, but it does look like compensation may be improving slightly for insurers to dissuade the use of a paint and material calculator,” offers the executive director. “A calculator does make it more difficult to give concessions on paint and materials, as you know exactly what materials were used. If the actual invoice is there, it is harder to arbitrarily throw out a number.” Unfortunately, the Survey also reveals that the number of technicians working in shops is going down in almost all regions. “I’m not sure if the reason for the reduction in average number of techs is due to streamlining of processes, lack of work, loss of techs to other industries or even another reason,” Hendler says. “If there are fewer techs to do the work, but there is an increase in administrative roles, then it leads me to believe that there will have to be some sort of managerial shift in the costs associated with employees.” While rocky at times, the numbers offered in this Survey benefit from one very important element: Reality. As Hendler says, “This is information that was gathered without any unknown algorithms, contractual agreements or other factors that can lead to results that are not accurate. We simply asked for the cash, posted or retail rates for any respondent. We believe it gives a clearer result of the regions.” Hendler has an important message for those shops who were unavailable – or unwilling – to take part in this Survey: “If you are not a participant in the Survey, then you are not a part of the gathering to better the industry. The more information the industry has to understand, the better off everyone in it is. You cannot know where to go without first knowing where you are. Identifying where you are in your own region and what your individual shop rates are can help to show factors that may be different for your peers than for you. Not every collision repair facility is the same, nor do they have the same way to calculate a rate – or charge for it. There are too many variables that come into play to believe there should be a set rate for any market.” Look for Part Two of the WMABA Labor Rate Survey results in next month’s Hammer & Dolly. H&D
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WMABA FEATURE continued from page 30
Audi instructor Shawn Hart displayed the types of welds that students need to perform in order to earn certification.
each vehicle it produces by crash testing it an average of 150 times before releasing it onto the marketplace. On the subject of equipment, Hart noted that Audi currently approves two welding machines for aluminum repairs – the Fronius VAS6388A and the Migatronic VAS2001C. Allen cautioned that some other companies currently promoting welding equipment for use on aluminum-intensive vehicles have not submitted their products to Audi to be tested for equipment performance, nor has this equipment been used in the development of repair procedures through crash testing. Without going through these testing processes, they remain unapproved by the automaker. “[An unapproved product] may work; it may not work,” he said. “I’m not willing to gamble with my customer’s life to find out if it will or it won’t. I can tell you that the repeatable outcome is from using the tools and equipment we have.” Shops that meet Audi factory tool requirements and Audi Authorized Collision standards for all Audi models, maintain a staff of repair technicians who are trained/tested in aluminum welding and body techniques and pass yearly standards audits and bi-yearly re-certification can become Audi Authorized Aluminum Collision Repair Facilities. Naturally, fulfilling Audi’s requirements demands a considerable commitment of time and resources. Depending on the equipment they might already have when they first sign on, shops can expect to spend between $60,000 and $130,000 to reach the tool,
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equipment and training standards of the steel program. If a facility wants to take on Audi’s aluminum program, they should plan to double that amount. That said, Audi welcomes shops of all sizes to take advantage of the opportunity to become Audi Authorized. “We have everything from small, two-tofour-bay mom-and-pop shops that are looking to distinguish themselves all the way up to shops that are 90,000 square feet,” Allen said. “What I’m looking at is whether [a customer] is going to go in and have an experience at the shop like they’re walking into the Audi dealer, or if the shop is a dark hole in the wall that hasn’t seen the light of day in years.” Once a shop makes the necessary investment to achieve Authorized status, it is imperative that they don’t lose repair opportunities to shops in the area that haven’t earned that Audi distinction. To help this along, the automaker sells certain parts only to certified repair establishments. “On the aluminum program, I restrict all of the structural parts, and I do consider a quarter panel a part of the structure,” offered Allen. “The only people who can buy them are aluminum shops that are on the program and
have gone through the training...I can do that on the merits of the technical competencies required to make sure that those parts are installed properly and safely.” However, Allen was quick to add that the Audi A6 and A7 are not subject to this restriction, as these vehicles have a cast aluminum strut tower on top of a high-strength steel rail.
“If you can sell the entire assembly and it can be installed by the average shop, or if it can be sectioned, we can’t restrict the aluminum part,” he said. H&D
For more information on Audi's aluminum training curriculum and Authorized Aluminum Collision Repair Facility program, please visit www.wmaba.com.
Audi's Mark Allen held up the special Audi overalls awarded to students who pass the company's Welding & Structural Repair Certification 10-day Course. January 2015
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January 2015
SUBSCRIBE TO
the official publication of the Washington Metropolitan Auto Body Association, today!
Subscriptions are a free member benefit to all WMABA members (Washington, DC, Maryland and VA), and $34.99 to all others for a one-year subscription.
For more information, please contact WMABA Executive Director Jordan Hendler at (804) 789-9649 or via email at jordanhendler@wmaba.com.
January 2015
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January 2015
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PRESIDENT’S
MESSAGE THANK YOU
By the time you read this, the holidays will be over for another year. As I write this in late November, it’s hard to believe that 2014 is nearly over and we’re starting to look forward to 2015. I feel like I have to pause for a moment and think about all the things I am thankful for. First off, I’m thankful to our military (past, present and future), who have
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don Beaver
(443) 539-4200 ext. 17061 Dbeaver@antwerpenauto.com
fought for our freedoms – freedoms that allow me to write articles in this magazine that may not always win me popularity contests, but are nonetheless written without fear of reprisal. I am thankful for my editor, Joel, who helps me tone down my writing and keeps me from sounding like an idiot or a raving fool. I am thankful for our executive director, Jordan, who through her hard work and dedication - makes my position as president so much easier. (In truth, she really almost does it all.) I am thankful for our Board members, who tirelessly dedicate their time to bettering our industry. Most of all, I am thankful to our membership, who had the confidence in me to allow me to steer this ship we know as WMABA for the past year. There are many, many other things to be thankful for as well (way too many to list), but thank you to everyone who is involved in supporting the efforts of our great association and who have helped make it what it is today. As we move forward into the coming year and beyond, we need everyone’s support more than ever. There are many obstacles that we will have to tackle in the coming months. There are battles that we will be addressing in the future and our best defense will be you and your support. If you’re not happy with the current state of our industry, stop complaining and help us do something about it. We can make a difference! I will leave you all with this: Show thanks whenever possible, and take a moment to reflect on your bounties. Have a happy and prosperous New Year. H&D
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ADVERTISERS’ INDEX Alexander & Cleaver............................20 Alexandria Toyota ................................7
All Foreign Used Auto..........................48
Audi Group ..........................................13
Axalta Coating Systems ......................OBC
BMW Group ........................................26-27 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3
BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................8
Car-part.com........................................20
Chesapeake Automotive Equipment ..50
Empire Auto Parts................................42 Ford Group ..........................................16 Future Cure ........................................43 GM Parts Group ..................................9
Hendrick Honda ..................................25
Honda Group ......................................21 Hyundai Group ....................................23
Koons Ford ..........................................25 Malloy Auto Group ..............................11
Mazda Group ......................................49 MINI Group ..........................................34
MINI of Baltimore County ....................IBC Mitsubishi Group..................................46 Mopar Group ........................................33
Nissan Group ......................................32
NORTHEAST® 2015 ..........................48 NuCar ..................................................17
O’Donnell Honda ................................42 Packer Norris Parts ............................4
Porsche Group ....................................41
PPG ....................................................IFC Russel Toyota ......................................45
Safety Regulations ..............................45
Steck Manufacturing............................50 Subaru Group ......................................31
Toyota Group ......................................47 VW Group............................................44
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