Don’t Forget to Take WMABA’s Insurer Survey!
A Tool & Equipment Reality Check – Part 6
January 2022 Volume 15, No. 1 $5.95
UNPAID WORK?
Repairers Grapple as Insurers Overwhelm Shops with Increased Administrative Burdens
www.wmaba.com
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CONTENTS January 2022
25 COVER STORY
BY ALANA QUARTUCCIO BONILLO
UNPAID WORK? Repairers Grapple as Insurers Overwhelm Shops with Increased Administrative Burdens
Virtual estimating woes plague shops.
LOCAL NEWS 8 WMABA INVITES COLLISION REPAIRERS TO RATE INSURANCE COMPANIES IN 2022 SURVEY Make your voice heard.
WMABA FEATURE 10 SAFETY & SPECIALIZATION: A TOOL & EQUIPMENT REALITY CHECK – PART 6
DEPARTMENTS 4 Editor’s Message
BY CHASIDY RAE SISK There’s so much more to DTCs than just clearing the code!
NATIONAL NEWS 14 HERE COMES THE SUN: INDUSTRY LEADERS REFLECT ON 2021 AND LOOK FORWARD TO A BRIGHTER 2022
6 Executive Director’s Message 7 WMABA Member Application
BY CHASIDY RAE SISK What’s on the horizon for your association and others.
INDUSTRY ADVICE: ASK MIKE
32 WHAT ARE THE MAIN THINGS SHOPS SHOULD
13 WMABA Sponsors 34 Advertisers’ Index
CONSIDER GOING INTO 2022? Looking and planning ahead.
January 2022
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EDITOR’S
Chasidy Rae Sisk
MESSAGE
302.593.7002 chasidy@grecopublishing.com
CUSTOMER CARE: A COMMON CONNECTION I can’t fix cars. I’ve never received training on it and have no delusions about my technical limitations. In fact, my skills are limited to filling a tire with air and changing a tire (a recently acquired skill that I’d be unlikely to perform again without supervision). At first glance, writers (writers of words like me, not service writers!) and editors seem to have little in common with repairers from a professional standpoint, but after writing in this industry for over a decade, I disagree – I think we have a lot of similarities that aren’t apparent at first glance: Whenever I start working on a new article (repair order), I begin by conducting interviews (inspection) and reading more about the topic (researching processes and procedures). Then, I create an outline (blueprint) to organize my thoughts. I rearrange my notes accordingly (disassembly) and draft (repair) the article. Finally, I edit (reassemble) it and ask for a second set of eyes to proofread (quality control) what I’ve written. Removing any of these steps will result in a lower quality product than our readers deserve, just as neglecting to perform any part of your process could potentially lead to an unsafe repair – something neither of us wants. My completed process yields a new creation, something I’ve given life to, similar to how many of you feel after restoring a vehicle to its pre-accident condition, and just like you, I’m proud of what I’ve created. After all, neither of us would be very good at our jobs if we didn’t take pride in our work, right? Collision repair professionals care about their customers’ safety and well-being. And I care about the safety and well-being of our readers, including the well-being of your businesses. That concern quickly turns to frustration and even anger on your behalf every time I hear about the nonsense that you contend with when it comes to WMABA OFFICERS
PRESIDENT VICE PRESIDENT TREASURER SECRETARY IMMEDIATE PAST PRESIDENT
Steve Krieps steve@gregclineauto.com 304-755-1146 Rodney Bolton boltonconsulting61@gmail.com 443-386-0086 Kris Burton kris@rosslynautobody.com 703-820-1800 Phil Rice phil@ricewoods.com 540-846-6617 Torchy Chandler Torchy Chandler torchy.chandler@gmail.com 410-309-2242
BOARD OF DIRECTORS
Don Beaver (donbeaver3551@gmail.com) 443-235-6668
Bill Hawkins (hawkinswilliamjr@gmail.com) 510-915-2283
Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928
John Shoemaker (john.a.shoemaker@basf.com) 248-763-4375
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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getting paid for the valuable work you do! On a DRP, the insurer’s contract dictates what you get paid. In my past life as a freelance writer, I had contracts with clients, but the carrier isn’t your client; the consumer is! I’ve never had to negotiate my “repair order” with a third-party, and I’ve certainly never had a third-party entity (or even a client) dictate what I charged. Negotiate? Sure, but negotiating entails both parties giving and taking in equal proportions so that everyone gets what they need. That isn’t the case in most of your relationships with insurers. While performing my “inspection” for the sixth installment of “A Tool and Equipment Reality Check” (flip to page 10 to check it out), I learned that insurers object to paying for pre-repair scans if no DTCs are present. WHAT?! If someone hires me to review something they’ve written for errors, I expect to be paid for the work performed, regardless of how many mistakes existed in the original copy. That’s how we find out whether any potential problems are present. Isn’t it the same with a pre-repair scan? And yes, a hot mess of an article may require more edits and more time invested on my part…just like finding DTCs necessitates performing additional tests and repairs to target the problem you’ve found when pre-scanning a vehicle. “We don’t pay for that” is a fallacy and frankly a crock of crap that shouldn’t be accepted. Some shops successfully win this argument by providing documentation to support their estimate, but if I had to cite The Chicago Manual of Style to justify every comma I added to an article, the extra work would drive me crazier than I already am. So, why does a third-party entity have the right to add administrative burdens continued on pg. 31
STAFF PUBLISHER
Thomas Greco thomas@grecopublishing.com
SALES DIRECTOR
Alicia Figurelli alicia@grecopublishing.com
EDITORIAL/CREATIVE Alana Quartuccio Bonillo COORDINATOR alana@grecopublishing.com MANAGING EDITOR
Chasidy Rae Sisk chasidy@grecopublishing.com
OFFICE MANAGER
Donna Greco donna@grecopublishing.com
PRODUCTION COORDINATOR
Joe Greco .joe@grecopublishing.com
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 © 2022 Thomas Greco Publishing, Inc. Stock Images courtesy of istockphoto.com.
January 2022
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EXECUTIVE DIRECTOR’S
Renew, refresh, recharge!
MESSAGE
For 2022, Dump Out the Buckets If you feel like me at the beginning of a new year, you’ll make comments like, “How is it 2022?! Where did the last year go?” Rather than doing the same ‘ol resolution statements that last as long as new gym memberships - which fall to the wayside by February - let’s flip it to say we are going to realize the change we want to see. Realizing means turning a thought into action into reality. You could surmise I’m playing semantics but I promise it’s a different approach. One doesn’t need a new year to make a big difference, and it’s more about mindsets and substantial shifts over time than the limited goalbased ideals. Goals are really subsets of realization. They are steps we’d endeavor to make on the way to a measurable change. How I’ve been looking at the first step is like my kiddo’s toy room. If you are a parent, then you know what it’s like to just pick up the things in the middle of the floor for months, shoving them into overflowing bins of mismatched items, then have a breaking point where the full cleanout needs to happen. Every item gets dumped out, individually examined for the real estate it takes, and what is useful is kept and what is not is donated or given to friends. If you’re not cleaning out a playroom, think of it as the shop floor. There are no doubt antiquated pieces of equipment, storage areas of unused items or even people who just aren’t on board with continuing education “cluttering” the workflow. No different to this are the processes no longer serving efficiency or efficacy. Every piece of this is a straight-line equivalent to the space it all
takes in your mind. We may not think we “see” those things, but they’re nagging your subconscious. Another visual that’s been repeated in our office is the proverbial bucket of tasks. It’s overflowing, so you just skim off the top. It looks like only being able to address what’s currently a fire that day but never really getting to the body of the load. This is the place to dump it all out. A New Year’s coming gives us all the opportunity for reflection and what we want to see in the change categories of our lives. This is easily a personal discussion, because my experience is that all members of our industry could use some individual attention to work life balance, and categories like family, faith, finances, volunteerism AND career. The regret of many is the lack of meaningful accomplishments year over year, which can lead to depression or at least a negative attitude. Let’s meet this with our intention to clean out the playroom, dump the bucket, and promise to refill our spaces with realization to bring renewed life, meaning, improvement and excitement. Regardless of the issues this industry is facing, success is not just possible but attainable by all! H&D
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.
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JOIN ! TODAY January 2022
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LOCAL
Which insurers are the best… and worst?
NEWS Invites Collision Repairers to Rate Insurance Companies in 2022 Survey As part of its ongoing efforts to support the collision repair industry by providing consumer-driven resources, tools and information, WMABA has opened its 2022 Insurance Survey. The association urges members and non-members alike to share their feedback on insurance carriers by participating in the anonymous survey. In addition to supplying collision repairers and insurers with insights into claims handling practices in the Mid-Atlantic region, the results of WMABA’s Insurance Survey will be available to consumers to help in the policy-buying process. The information compiled provides an excellent resource for educating consumers about insurance carriers and can be used by collision repair shops as a conversation starter with customers. WMABA hopes the information collected on approximately two dozen carriers will also be beneficial to show more than just one person’s opinion, and rather a collective of voices, in an aggregate way. When approaching any regulatory body, this collection of opinions can be helpful in beginning useful dialogue WMABA’s 2022 Insurance Survey covers a plethora of topics, including: Shop Relations - Claims Handling Customer Experience Insurer Knowledge Base Overall Fairness Insurer Payment for Proper Procedures Transparency Collision shops will rate each insurer on a scale of 1 (worst) to 5 (best). This will be WMABA’s second Insurance Survey, following the survey’s debut in December 2018; results from the first iteration can be found in the May 2019 issue of Hammer & Dolly (available at grecopublishing.com), and results from the 2022 version will be available in a future issue.
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This is one of the ways repairers can use their collective voice to stand up for their customers, their shops and the industry at-large. WMABA’s Insurance Survey offers a quick and easy way to share your thoughts and be part of positive progress. It’s rare an opportunity to be part of something that gives visibility in both an informative and declarative way; the survey may be for “informational purposes,” but that’s what makes it so great! Help WMABA protect consumers and collision repairers by completing the survey at wmaba.com. H&D
Executive Director’s Thoughts We really encourage all repairers to give their feedback – and especially for those insurance companies they enjoy working with! It’s an opportunity to praise the companies who stand out as excellent, fair, and customer-oriented. - Jordan Hendler
January 2022
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WMABA
FEATURE SAFETY & SPECIALIZATION:
A TOOL & EQUIPMENT REALITY CHECK – PART 6 Clearing a diagnostic trouble code (DTC) seems like a simple enough process: Click the right button and the fault clears – but does this action actually correct the problem(s) with the vehicle? In a small percentage of situations, the answer is “yes” because that code was introduced during the repair process; however, the majority of DTCs result from something that happened during the collision, which means the conditions that caused the code to set must be analyzed and resolved to ensure the customer’s vehicle is properly restored to its pre-accident condition and is safe to drive. “Scanning and calibrating a vehicle isn’t as simple as clearing a few codes; there’s a heck of a lot more to it than that,” says Barry Dorn (Dorn’s Paint & Body; Mechanicsville, VA). Safety Concerns Associated with Incorrectly Cleared Codes To explain why improperly clearing DTCs poses safety hazards, let’s explore a hypothetical scenario: A customer’s vehicle is dropped off at a collision shop with a pre-repair condition that set a code for the occupant sensor. Vehicle manufacturers design these sensors to identify the relative size of the passenger and determine the rate at which airbags are deployed, so a miscalculation could easily cause a tragedy. “The airbag is designed to deploy at a certain speed if the occupant is a grown man, but by reading the weight in the seat, a child passenger will cause it to deploy at a slower rate,” explains Josh McFarlin, AirPro’s executive vice president of operations. “But for the sensor to know how fast to deploy the airbag, it must be calibrated so that it performs the way it was intended. When a fault exists and the repairer simply clears the code and sends that vehicle down the road without calibrating those occupant sensors, that airbag system is unlikely to operate correctly. And because it probably won’t trigger a light on the dash, the driver doesn’t realize there’s a problem – until it’s too late.” “The check engine light is irrelevant for a professional repairer,” Dorn points out. “It’s not meant for us; it’s for the consumer, and using that to determine if the vehicle needs
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additional scans, calibrations and repairs is meaningless and dangerous.” While initial scans aren’t that time-consuming, many fail to acknowledge that 85 to 90 percent of the time, a pre-scan fires DTCs which require additional operations, as well as additional time and effort to research, diagnose, validate and clear the codes. “You can’t just clear the codes without doing the research,” McFarlin stresses. “Often, the technician just clears the code, and because the parameters prevent the fault from resetting for two key cycles, it resets after the vehicle is returned to the customer without the problem being resolved. Now, there could be a situation where their airbags don’t operate correctly. This is why it is so critical to take the time to research, diagnose and validate the cause of every fault that is present.” “We Don’t Pay for That!” Imagine your horror if a faulty occupant sensor on a vehicle you repaired caused an airbag to deploy at a rate meant for 6’5”, 250-pound man when a child occupied that seat. That’s a tragedy that no one wants to be responsible for, yet collision professionals neglect to perform the necessary calibrations on a large majority of vehicles. In fact, on average, only seven percent of the necessary calibrations are being performed on today’s vehicles, according to McFarlin. “Although 93 percent of repaired vehicles aren’t correctly calibrated, they are returned to the roads, and they’re operating around us all the time.” Fortunately, AirPro and similar companies offer diagnostic services performed by qualified technicians to help prevent this from happening. Unfortunately, few shops utilize these services because third-party bill payers are so fond of informing them, “We don’t pay for that.” According to Dorn, carriers frequently write estimates limiting labor hours for pre- and post-scans to half-an-hour each, while in reality, this work takes a minimum of one hour. Depending on the DTCs set, a shop that accounts for all aspects of scanning,
Diagnostics require specific training. BY CHASIDY RAE SISK
research, diagnostics and calibrations could easily rack up eight labor hours or more. “They want to generalize and normalize the process, leaving shops feeling as though they have to just deal with it because they don’t know any better. But it’s our customers who are in jeopardy when we accept that it’s ‘not included.’ That doesn’t matter. The important thing to pay attention to is what the OE requires. That’s how we achieve safe repairs.” Dorn believes that insurers started writing for one hour of total pre- and post-scan time because the information providers (IPs) briefly tried to estimate the time it takes to perform this process. “They measured how long it takes to drive the vehicle into the stall, hook it up to a scan tool and initiate the system, and they all came to the conclusion that it takes 0.3 hour. But what does that prove? Absolutely nothing! That’s why the IPs abandoned this approach, but the carriers have clung to it and keep trying to drive down the paid time to a half-hour for the pre-scan and a half-hour for the post-scan. About 60 percent of the vehicles we repair can be prescanned in about an hour and post-scanned in the same amount of time, but that doesn’t account for performing anything additional that those scans reveal.” “It’s never as easy as hooking up the tool, getting the code and clearing the code,” McFarlin objects to the carriers’ method of paying for scans. “The bill payer looks at it that way, but there’s so many more nuances. We have to examine the data and the parameter IDs (PIDs) to perform active commands and bi-directional controls. Yet, we still hear carriers saying, ‘If no codes are present, we don’t want to pay for the scan.’ How does the shop know whether there are codes if they don’t scan the vehicle? So, they have to perform the labor to get the results, yet if the result is an all-clear, they aren’t entitled to get paid the labor they did to determine that. It’s illogical.” Collision Repairer or Diagnostic Technician? Most repairers want to do the right thing and would gladly eat the cost unpaid by the carrier if it meant protecting our hypothetical child. So, if we know that failure to perform required scans, calibrations and diagnostics leads to loss of life, as well as liability concerns for the shop, why aren’t collision repair shops doing a better job of scanning and diagnosing vehicles? Well, that’s yet another major problem that arises with scanning and calibrations: Collision repair professionals are NOT diagnostic technicians! Each job requires a completely different skill set and level of training. “Whether you’re using an OEM or aftermarket scan tool is immaterial; any tool is only as good as the person using it,” Dorn notes. “The tool’s effectiveness depends on the technician using it and their familiarity with the tool and the process. The most important tools in a shop’s toolbox are the technicians who work there, and on the collision side, we tend to hire repair planners, body techs, detailers and painters who aren’t proficient with using these tools. What we don’t do is hire diagnostic technicians.”
McFarlin agrees: “The key is the tech’s knowledge, and collision repairers generally don’t possess the knowledge related to scanning and diagnostics. A structural technician, non-structural technician or refinish technician isn’t going to be able to identify, diagnose and resolve those DTCs because that’s not what they’ve been trained to do. You need someone who knows their way around the vehicle’s electronics in order to get in there, chase down the issues, diagnose them and come up with a repair plan that actually resolves the problem. A collision repair professional is neither equipped nor trained to perform calibrations and diagnostics.” A collision technician and a diagnostic technician may have some things in common, but they perform different functions. Dorn compared the difference to using two frame machines from different manufacturers. “They’re similar in scope, but they produce unique results. Similarly, there are many variances in the duties of an average collision repair technician as compared to what a diagnostic technician does; the fact is that we just don’t have the same training or skills, not to mention the impracticality of an individual shop investing in all the tools and equipment needed to scan, diagnose and calibrate all vehicle makes and models. “Sure, we can hook up a scan tool and generate a report, but that doesn’t mean we understand what we’re looking at,” Dorn adds. “We need to rely on someone with the ability to read and translate that report for us.” Because diagnostics are such an important part of safely repairing today’s vehicles, Dorn relies on a third-party provider, utilizing their experienced diagnostic technicians who know how to remotely scan vehicles and can clearly indicate what needs to be done to ensure a proper repair for his customers. “A diagnostic technician doesn’t merely look at the fault codes,” McFarlin clarifies. “Diagnosticians also look at live data because simply clearing the fault isn’t adequate; we need to actually validate that all the systems are operating correctly, and to do that, there are tons of decisions that need to be made. That’s difficult for a technician to do unless they’re well-versed in diagnostics, and because most collision technicians aren’t, customers are returned to the road in a vehicle that isn’t prepared to protect them – and it also doesn’t protect the repairer who is liable for the improper repair.” “This is a comedy of errors,” Dorn observes. “But there’s nothing funny about it; when we make a mistake and neglect to properly diagnose and calibrate a vehicle, the situation is life-threatening.” H&D
Executive Director’s Thoughts It’s clear; clearing codes is not a viable or safe answer to the diagnostic question. No more so than a standard minimal (or no) reimbursement. Every car is going to be different, as will its needs. Just like the special training needed to discern, diagnose, calibrate and send the safe vehicle back to the customer. It’s never been a better time to understand the difference! - Jordan Hendler
January 2022
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WMABA THANKS
YOU
WMABA thanks their generous supporters of the
LEVEL 1
Corporate Sponsor Program for 2022!
We encourage YOUR SUPPORT of those who SUPPORT US! For more information about the sponsorship program, please contact Executive Director Jordan Hendler at (804) 789-9649 or email jordanhendler@ wmaba.com
www.wmaba.com
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January 2022
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NATIONAL
NEWS
HERE COMES THE SUN:
INDUSTRY LEADERS REFLECT ON 2021 AND LOOK FORWARD TO A BRIGHTER 2022
Each year brings its challenges and its triumphs, and although 2021 (like its predecessor, 2020) offered some unique hurdles, collision repair associations around the country rose to the occasion and continued to support members and the industry at-large through educational opportunities, virtual and in-person networking events and various forms of advocacy. Which efforts stood out the most for association leaders? What’s next on their agenda? Hammer & Dolly sat down with Washington Metropolitan Auto Body Association (WMABA) Executive Director Jordan Hendler, Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg, Alliance of Automotive Service Providers of New Jersey (AASP/NJ) Executive Director Charles Bryant, Auto Body Association of Texas (ABAT) Executive Director Jill Tuggle and Alliance of Automotive Service Providers of Massachusetts (AASP/MA) Executive Director Lucky Papageorg, who graciously shared their insights on last year and their hopes for 2022.
Hammer & Dolly: What was your association’s biggest accomplishment(s) in 2021? Jordan Hendler: The association’s largest accomplishment – besides surviving in pandemic times – would be publishing the
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Labor Rate survey. That project is one of the more relevant and important things we do, aside from keeping our membership informed and updated with the latest industry changes! Aaron Schulenburg: 2021 was an interesting year as the industry continued to navigate the challenges of the pandemic and find our way back to “normal.” SCRS enjoyed several accomplishments that stand out for me, but I believe the most important activity was leading by example to help shops get back to business. We identified creative approaches for delivering useful bits of information. In addition to our Monday estimating tips, we launched a new weekly video series, Quick Tips, in January 2021 featuring Mike Anderson of Collision Advice and Danny Gredinberg from the Database Enhancement Gateway (DEG); we’ve received really fantastic feedback from the industry on the usefulness of this type of content and we’re excited about the library of material we’ve built, which is free to everyone and available at youtube.com/ SCRSCollision. This will continue forward in 2022. Charles Bryant: One of AASP/NJ’s biggest accomplishments this year was the creation of our Health Insurance Program for AASP/ NJ members through the Amato Insurance Agency (a division of World Insurance). The program successfully saves members of
A new year, a new outlook. BY CHASIDY RAE SISK
the industry and their employees so much on the cost of health insurance that other states, in addition to New Jersey, are starting to participate in the program. Jill Tuggle: ABAT’s 2021 Texas Auto Body Trade Show was our biggest accomplishment last year for two reasons. First, it actually happened!! And secondly, it was a success. We’d heard that the attendance at any kind of event or trade show was only reaching about 30 percent of what was typical, so when we hit our target number, we were thrilled. Lucky Papageorg: AASP/MA’s biggest accomplishment in 2021 was our legislative push, beginning in February, which has carried us through to where we are today with a mobilized membership whose efforts to contact their state senators and representatives resulted in convincing 90 legislators to sign onto our two bills.
H&D: What was the most memorable or most fun thing that your association did in 2021? JH: Our golf outing is a total hoot! We have a great day of games
and community, while fundraising for our industry initiatives – including our Jerry Dalton Memorial Education Fund.
AS: In 2020 and 2021, SCRS found ways to accommodate the transition to interacting at a digital level, but there’s simply no replacing the one-on-one interactions that happen at live events. The 2021 SEMA Show provided the perfect return to big industry events and was hugely successful, despite the obstacles we all had to overcome to make it successfully happen. The event offered the return of valuable in-person educational and business opportunities, but it was also a truly fun event that gave us all a chance to see people we haven’t had the opportunity to connect with in a while. I love this industry, the people in it, and what it represents: Helping people when their vehicle is broken and they’re in need. Our members deliver a great service to their communities, and the work for consumers can be rewarding; however, it’s also a very difficult industry. The day-to-day can be hard, and I think the spark of excitement at the SEMA Show is a reminder of why we love working in collision repair and the automotive industry. The return to that onsite experience really re-energized all of us in a way you just won’t find anywhere else. CB: AASP/NJ’s Golf Outing is usually one of the most fun things that the AASP/NJ sponsors during the year; however, as the result of COVID-19, we decided to cancel it this year. AASP/NJ looks CONTINUED ON PG. 17 January 2022
15
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NATIONAL NEWS CONTINUED FROM PG. 15
Jordan Hendler
Aaron Schulenburg
Charles Bryant
forward to the end of the pandemic, so we can get back to normal and conduct more memorable events for members to get together, enjoy each other’s company and create new memories. JT: We hosted a contest at the Texas Auto Body Trade Show called ABAT Big Shots where contestants could prove that they are the best in the business at a virtual welding machine, virtual paint booth, actual seam sealer applications and estimate writing. The contest was wildly popular, and plans to make it even better next year are already in the works! LP: Our association’s last general membership meeting in November allowed us to gather face-to-face for the first time since the pandemic. The energy in the room was phenomenal, and it was great to see people in person again; everyone could feel the camaraderie, and we received a lot of positive feedback on the content discussed during the meeting. It was a great return to a sense of normality.
H&D: What are the biggest challenges your members are facing on a state level, and what is the association doing to address those concerns? JH: The membership of WMABA is facing the same challenges as
all other repairers in this country. It’s an ever-changing landscape filled with hurdles, such as the rise in virtual estimating coupled to lack of adjuster education, parts or supply chain issues, rising costs of everything and the lack of qualified candidates for every position in the business. Still navigating COVID-19 and pandemic-related challenges, shops are struggling with personnel and customer relations. It’s getting “better,” but it’s not where everyone wants it. We maintain connection through events like our virtual Membership Watercooler Chats, where every month at the same time and place our members can discuss what’s happening, what’s important to them and what’s working that they can share. It’s a really positive environment, and everyone who comes loves it!
Jill Tuggle
Lucky Papageorg
AS: There are countless examples of the challenges facing collision repairers. I could go in a lot of different directions with this. But one of the difficult areas we have right now is confronting the dilemma of staffing and attracting new people into our trade. Finding ways to help people recognize the opportunities that exist in collision repair and encouraging them to see it as a career path, not just a landing spot, is an important initiative on a local and national scale. SCRS consistently works to generate awareness around this issue with our Affiliates, with other organizations within the industry, and by supporting programs like Enterprise and Ranken Technical College’s Automotive Collision Engineering Pilot Program, which helps build better pathways for entry into the field – and that’s exactly what the collision repair industry needs. By using our voice, we can ensure that we create solutions that help schools more capably deliver on what repair businesses are seeking, find ways to help small businesses compete with larger companies for quality entry-level employees and transform this industry into a place where people WANT to pursue a career. CB: Dealing with the many challenges resulting from COVID-19 has been all-encompassing and includes concerns such as delayed first and supplemental inspections, the insurance industry’s push for photo estimating and the lack of available parts required to repair damaged vehicles. Through our research into the issue of shops preparing damage estimates based on photos without seeing the vehicle, AASP/NJ verified that such activity is a violation of the NJ Auto Body License Law and could result in heavy fines or even suspension of the shop’s license for preparing an estimate based on photos, phone calls or any other means, other than a personal inspection of the damaged vehicle. AASP/NJ made this information available to members, and many of our members now utilize it as a weapon to refuse to participate in the photo estimating process, which has resulted in nothing more than inaccurate estimates and major delays, and it is hurting the estimating process much more than helping it. AASP/NJ is currently in the process of compiling a CONTINUED ON PG. 20 January 2022
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NATIONAL NEWS CONTINUED FROM PG. 17
Finding ways to help people recognize the opportunities that exist in collision repair and encouraging them to see it as a career path, not just a landing spot, is an important initiative on a local and national scale. special form that shops can use to remind insurers of the time limit allowed for insurers to inspect damaged vehicles. In situations where insurers have already violated the rules and regulations governing fair claim settlement practices, shops can utilize this form to alert insurers to the fact that the repairs have either already commenced or been completed, based on the shop’s contract with the vehicle owner. The form also includes verbiage indicating that, as a result of the insurer waiving their right and opportunity to inspect the damaged vehicle, commence negotiations and make a good faith offer of settlement, the insurer has also waived their right to challenge the repairs. JT: Our problems are not few these days, but one of our biggest challenges on a state level is the Texas Department of Insurance (TDI). They sit idly and approve policies that violate the laws, rules and consumer rights that they have outlined for insurance companies to abide by. We have pleaded with them to take action to no avail. ABAT will not accept that “this is just how it is,” and we plan to challenge this issue through the use of our consumer forms, awareness campaigns and (if needed) our legal system. LP: Massachusetts body shops are particularly frustrated with the lack of activity on the part of the legislature and governmental agencies, such as the Auto Damage Appraiser Licensing Board (ADALB), to address the issues we’ve been voicing with them in regard to Labor Rate and insurance appraisers’ failure to write proper estimates. AASP/MA’s efforts to circumvent these problems have taken shape in the form of our two bills: one to move the ADALB from the Division of Insurance to the Department of Professional Licensure, and the second for Labor Rate reform. We’re staying in contact with legislators and the powers-that-be to keep both issues on the front burner and try to address these concerns legislatively.
H&D: What are the biggest challenges your members are facing on a national level, and what is the association doing to address those concerns? JH: We are one of the associations that finds participation at national meetings to be crucial to our survival. Not only do we see what’s coming down the pike, we also made connections with top-level companies and insurers which come in handy when we have a local issue. Having those relationships has been a huge benefit to our January 2022 20
members who find themselves in a bind, either with a customer, vendor or insurer. It’s been one of the greatest untapped gold mines of our group! AS: Collision repairers face so many challenges, and the most obvious is the remarkable pace of technological advancement taking place with the vehicles needing repairs, while members simultaneously combat downward pressure related to what they’re charging. The transition to virtual interactions and the pressures within that only exacerbated the issues that collision repair facilities encounter in the tug of war that is the estimating and claims process. Difficult relationships became even more difficult. SCRS’ efforts with OEConnection on the Blueprint Optimization Tool (BOT) helps shops capture and document performed operations in a way that identifies the vehicle’s needs earlier in the process and reduces friction with insurance carriers by providing a way to consistently communicate what’s required. DEG is another great example of the ways that SCRS looks at challenges and creates resources to remove friction. CB: Presently, the three biggest challenges are the lack of trained technicians, the changes in repair technology and the lack of parts available to repair vehicles. AASP/NJ seeks to combat this by providing a Labor Pool where available technicians can seek employment and where members can locate potential employees when positions become available. AASP/NJ constantly hosts training opportunities to keep members aware of the technological advances taking place on modern vehicles. As far as the lack of parts availability, we are basically at a loss on how to deal with the issue but welcome suggestions. JT: I believe our two greatest challenges nationally are inflation and labor shortages. I personally believe that this record-breaking inflation in our country may be positive for our industry. For the first time, we have a widely-accepted increase in costs that cannot be argued, and this could be an opportunity for shops to finally seek proper compensation. If not, shops will need to start writing proper and thorough estimates – and stop the practice of giving away the farm just to get a job. Either option offers a favorable outcome. In the coming months, we will be encouraging shops to keep their Labor Rates posted and current as well as providing instructions on how to properly fill out Labor Rate surveys. The shrinking pool of technicians has been the broken-record issue for years, but now it
is compounded with the fact that we can’t even fill general positions, such as cashiers, detailers and administrative roles. We are addressing the issue by educating shops on how to better equip and train their staff so that they want to stay employed at their shop as well as using social media sites to connect job seekers to employers. That is a small step that helps the problem on a minute scale, but to fix this problem, we need our country’s President to encourage folks to go back to work, instead of collecting mailbox money. As an association, all we can do is to empower people by teaching them to connect with their local legislators and voice their concerns. In order to fix the industry’s national problems, we have to use our voices and that should absolutely start locally. LP: The lack of labor force available and keeping up with all the technological advances being pushed down the road on us are problems that continue to be a huge burden on our members, but another concern is the large drive toward automation in the claims writing process. Insurers have accumulated a large database of amounts that should be paid for various repairs based on point of impact and want to lump everything under one umbrella, instead of evaluating each repair on a case-by-case basis. The association is working to make consumers aware of how detrimental that cookiecutter process is to them. AASP/MA uses different forms of media, including Facebook and radio, to demonstrate how insureds are being shortchanged by their insurers and offering suggestions to help them avoid being taken advantage of.
H&D: What are your association’s top priorities as we move into 2022? JH: WMABA is 50-plus years old now, and we need to reinvent ourselves in this new world, just like repairers do. It’s important that we deliver meaningful education and information to our members, along with opportunities for them to have more “community experiences.” We haven’t been the talk of the town for quite some time, and I really want to see us get back to a place where we are the first line of defense - the first place repairers go with questions. Even if we don’t have the actual answer, I guarantee we know how to find it! AS: Regardless of the year, SCRS’ priorities remain the same: Finding ways to advance the industry in meaningful ways! I expect 2022 to bring a lot more of that as we find opportunities to use our size, voice and people’s respect for the organization to influence the industry in a way that improves it for the people we serve at a business level as well as the consumers they serve. We hope to produce more information, share more educational opportunities and promote advocacy efforts to ensure there’s a voice for every person and business in this industry. We’ve got some ambitious
projects in mind that we can’t wait to share, but everything we do begins with the collision repair professionals around the country. There’s a lot of information coming down the pipeline, and if you’re not already subscribed to our YouTube channel and following trade publications like Hammer & Dolly, don’t miss out! You don’t want to be one of the shops that isn’t privy to all the changes coming because you weren’t following along, and if you are paying attention, make sure that you’re sharing the information with your peers. SCRS members and supporters often ask how they can contribute in a meaningful way, and the most impactful thing you can do is carry the water: Help others access the knowledge we bring, because the more knowledgeable we are collectively, the stronger this industry becomes. Challenges will always exist, but we find out who we are as an industry in the ways that we rise up to address them. CB: AASP/NJ’s top priority is to maintain the many member programs that we have established to assist our members with any issue that comes up during the normal course of doing business, such as our Labor Pool, Equipment Exchange, Hit and Run Program, discounted Health Insurance Program and the AASP/NJ Hotline, which is available to answer members’ questions and assist with any situation that may arise, all day, every day. AASP/NJ’s ultimate goal is to make our members aware that they are not alone and that they can always depend on AASP/NJ to help whenever a situation arises where they need our assistance. JT: In 2022, ABAT hopes to lay the groundwork for a successful 88th legislative session during this interim year and to make positive change by forcing the TDI to finally behave like the unbiased and consumer protection agency that it is supposed to be. On their website, you can view their “promise” to consumers: “We recognize our responsibilities to both consumers and the insurance industry. We work to fulfill our legislative mandate to regulate the insurance industry while protecting the people and businesses that are served by insurance. We pledge to provide high quality service to all our customers.” We just want them to uphold this promise. LP: In 2022, AASP/MA will continue promoting our Labor Rate bill and our bill to move the ADALB, and we hope to see these issues positively addressed through legislation. We’ll also continue to concentrate on increasing consumer awareness, and in order to be successful at both of those objectives, we look to increase the number of active association members to strengthen and amplify our voice. With these association leaders at the helm, the future of the collision repair industry looks bright for 2022 and beyond. We at Thomas Greco Publishing are grateful for their efforts and for all our readers. We wish you all a HAPPY NEW YEAR! H&D January 2022
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January 2022
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COVER STORY
Insurers add to repairers’ plates. BY ALANA QUARTUCCIO BONILLO
UNPAID WORK?
Repairers Grapple As Insurers Overwhelm Shops with Increased Administrative Burdens The tipping point is here, and repairers have had enough!
Burdensome administrative duties, stemming from changes in the way insurers are conducting business these days, is really taking its toll on collision repairers in the Mid-Atlantic region and all over the country. It’s not a matter of having too much repair work to do. It’s a case of carrying the work that insurers once took care of themselves – not that long ago. Today, shops all over the WMABA region report increased administrative woes, causing frustration, decreased morale and a slow-down in production on their floors as a result. With this piled on top of COVID-19 aftershock, parts delays due to supply chain issues and regular challenges in finding good help, it’s no wonder collision repair professionals are feeling drained, overburdened and just plain fed up. Repairers report that photo or virtual estimating has led to more delays, research and paperwork than ever before. “It’s just unbelievable,” comments Phil Rice (Huber Collision Center; Fredericksburg, VA). “It’s really kind of sad seeing the pressures and some of the things that we have to do on the backend. In the not-too-distant past, a service writer could handle three or four body men easily. What we’re seeing right now with the number of supplements that are required, the administrative responsibility, the pictures and the documentation, it’s really hard for a writer to handle more than a couple of body men. It’s crazy.” Insurers may want people to believe that the virtual process truly took hold due to COVID-19 pandemic restrictions, but collision repairers say this is indeed not the case. “I think COVID-19 was just an opportunity to use it more,” believes Kris Burton (Rosslyn Auto Body; Alexandria, VA). Rice echoes Burton’s thoughts: “We were already headed in this direction, and COVID just expedited processing claims,” he laments. “Insurance companies have learned how to do things without staffing a building, which puts the burden back on the shops.” Also in agreement is Steve Krieps (Greg Cline Auto Body;
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Winfield, WV) who says, “Issues with virtual estimating definitely started prior to COVID. It has nothing to do with COVID; it didn’t come from COVID despite what some bill payers try to claim. I think it’s a crutch and an excuse.” Burton says the extra burden of administrative duties caused by the estimating process is truly a “time sucker.” Some insurers like Progressive and GEICO still send appraisers out, but for the most part, everything he’s dealing with is virtual. Supply chain issues are causing some problems, but Burton admits his biggest hurdle right now is handling all these additional administrative duties caused by the estimating process. His shop does their part and submits what they need to an insurance company...only to get a response five to eight days later. “There’s minimal communication, and what you get back is a quarter of what you are asking for,” shares Burton. “Essentially, you are finding yourself honestly questioning your sanity,” declares Krieps. “You are filling out the information and all the documentation. You are doing the research because you now have to hold the appraisers’ hands and walk them through everything imaginable. It’s like explaining how you have to fix a car to someone who knows absolutely nothing. Unless you can get them to understand it, they won’t cover it. Shops should not have to send 1,000 pages of procedure documents to explain why a battery needs to be disconnected. The overhead administrative time has grown exponentially. You almost have to become a claims specialist yourself because most of these representatives don’t even understand the policies they write for or how they are applied.” At Rice’s shop, these expectations from insurers are causing “a scheduling logistical nightmare.” “The number of cars that I need to have in rotation has increased due to the way supplements are tying cars up,” he explains. “I used to be able to plan around the hourly production average of each of my techs and fill their stalls with the work that they need. Now, I have to substantially increase that because CONTINUED ON PG. 28
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COVER STORY CONTINUED FROM PG. 25
there are so many cars I can’t work on. Then you are forced, once the approval is received, to tell the customer that you will put their car back into the schedule, but it may take a day or two before I can get back on it.” And if scheduling challenges weren’t bad enough, Rice reports he’s also being pushed by insurers to cover additional rental costs caused by delays that the carrier is causing. “They will pay the rental for three to five days to do the supplement, but once that supplement is complete, they expect you to work on the car immediately. In many cases, we tell them, ‘We don’t have the parts because we didn’t know when you’d authorize it,’ so the process is complicating the rental. We are seeing more customers exceeding their rental coverage than ever before. This is not due to the delay of the shop; the insurance company is causing these delays.” Rice is willing to cover the rental cost if the delay is on his end, but when it’s the fault of the insurer, he has no choice but to tell the customer and have them deal with the insurance company directly. Barry Dorn (Dorn’s Body and Paint; Mechanicsville, VA) suggests that the so-called “talent shortage” (self-inflicted as most insurers let go of up to 50 percent of their staff), which insurers claim is the reasoning behind all the additional stress on shops, is also causing major trust issues with consumers. “When the photo estimate comes through with an inside adjuster that’s been there for a very short time at $600 or $700 and then when we find, through the blueprint process, that it’s $15,000, it tears apart that trust as the consumer asks themselves who is trying to defraud them,” points out Dorn. “They ask if it is the carrier with their initial estimate or is it the shop – because somebody is not being forthright and didn’t do their job. It makes the consumer feel like someone is lying to them.” And on the shop floor, having to rely on communication via apps and a back-and-forth process that can take four or five times with hour-long waits, this is a “morale killer to our teams, which we need to keep,” says Dorn. “For some insurers it used to be a two-or-three day process, but now it takes two to three weeks to get the blueprint finalized.” All these added stresses are leading to burnout, and in many cases, shops are starting to reconsider their relationships with insurers, while many others are throwing in the towel completely. BASF Business Development Manager John Shoemaker is seeing his customers get “buried” by insurers with the constant increase of administrative tasks. “The added administrative duties put a lot of stress on front office personnel,” offers Shoemaker. “They are never able to get
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ahead, so we see a lot of burnout. Many just don’t want to do this anymore. You see an increase in consolidation since the first of the year because shop owners are saying ‘I’ve had enough.’” Proof lies in the fact that Crash Champions has bought multiple shops in the last six months, which Shoemaker says is a sure sign that more and more people simply don’t want to deal with the industry’s challenges anymore. Additionally, many are looking to leave their DRP relationships behind; in fact, shops that are moving away from these programs are finding their profitability going up, according to Shoemaker. “I think we are heading for another culture change like we saw in the early to mid-1990s when DRPs were the thing and people forgot how to manage their businesses. Now, I think that culture is shifting back to where people are taking control back. Rather than relying on DRPs, they’d prefer to move toward OEM certification and be more involved in their marketing in this digital age.” As a solution, Shoemaker suggests shops reassume control of their businesses and take control of the repair right off the bat. “The ones who are getting hurt the most are those who aren’t disassembling the vehicles up front. Yes, there are supply chain issues and it takes time to get some parts, but it takes longer if you don’t order everything up front on day one or day two. In many cases, additional parts are found mid-repair, and they wind up being on backorder.” He says it’s the same issue with shops beginning repairs on photo estimating; they start the repairs, and four or five days into it, they find out more parts are needed. “If they properly repair plan for that vehicle, they’d have known about all the needed parts on day one and could get those parts shortly after needing them.” As the new year begins, one can only hope these pains will be alleviated in the coming months. Meanwhile, shops continue to deal with the additional duties. As Krieps puts it, “You almost need one person in the office just to field the phone calls.” H&D
Executive Director’s Thoughts In my 22 years, I’ve never seen a give back of admin duties. It’s only gone in the direction of the repairer. To the point Barry Dorn made, several carriers downsized thousands of employees during the pandemic then blame staffing shortages as to why their responses are delayed. I’m sorry, but they did this to themselves. And yet, the repairer is “allowing” the bill for that to land on their desk. I’d be excited to see a reverse in these circumstances in the near future; the “how” is yet to be determined. The customer seems to always be the one caught in the middle. Hmm… - Jordan Hendler
January 2022
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EDITOR’S MESSAGE continued from pg. 4 to your job while simultaneously insisting on paying less than you’re due? Because you and your peers accept it. (Take a look at page 25 to read about how additional administrative burdens are bogging down shops in your area.) Most insurers can’t fix a car any better than I could; YOU are the professional with the knowledge and skills for the job. So, isn’t it time for collision repair professionals to come together, use your collective voices and tell the third-party payers, “We performed necessary work to ensure our mutual customer’s safety and that customer deserves to be properly indemnified”? I’d love to hear from our readers about how your shop gets paid when insurers object to paying for needed procedures. Shoot an email to chasidy@grecopublishing.com to share your secrets! H&D
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INDUSTRY
ADVICE
ASK MIKE:
What Are the Main Things Shops Should Consider Going into 2022? This month, we “ASK MIKE” to share his thoughts on what shops need to consider and focus on as they start a new year. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industryrelated matter that he can answer in a future issue. Hammer & Dolly: The industry has been through a lot these past several months. Now that 2021 is coming to a conclusion, what are some of the biggest things that shops must pay attention to as we move into 2022? Mike Anderson: Number one, shops need to focus on staffing issues. Shops have a ton of work right now but not enough staff. We need to focus on how we’re going to grow our own. The days of stealing fish from another man’s pond have gone by the wayside. Number two, there are more administrative burdens that are being shifted over to collision repair staff every single day. As I work with shops all over the country, I see that admin people are just maxed out and stressed out. Number three, shops need to figure out how to utilize technology and embrace new things. When somebody rolls out something new, it may not always be perfect the first time. Instead of just shutting it down, shops need to be open-minded and realize that it may not be the perfect technology or solution, but they can still start out
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with it, provide input to improve it and make their lives easier. Embrace it; don’t fight it. We also need to figure out how to offer better compensation packages to recruit people. Right now, someone could make $20 an hour working at a burger joint. We’re offering $12 to $15 an hour for people to come in and wash cars, but we’re not going to be able to keep getting them. The way we offer better compensation packages is by writing more accurate estimates and capturing more not-included operations. That can be accomplished by being involved in an association so you can learn about things like the Society of Collision Repair Specialists’ [SCRS] Blueprint Optimization Tool [BOT] or attend the training opportunities that WMABA offers. Preparing for electric vehicles is another thing we have to think about. Take advantage of the fact that I-CAR is offering a free online course for EVs right now. Start thinking about that; don’t wait until the last minute. The future is bright. COVID-19 created issues for people, but it also provided opportunities and maybe jumpstarted our use of technology. I understand how difficult it can be to bring in new technology, but it’s important to do so. As an example, my team at Collision Advice wants me to use business communication software called Slack. I hate technology, but I know I need to embrace something like that. Our industry is ripe for disruption, and I encourage people to be open-minded to that change. Just because we’ve done something for 20 years doesn’t mean that will get us through the next 20 years.
Smarter and stronger together.
H&D: When there are times of struggle in this industry, there are always some shops that really embrace that situation and develop ways to address it and strengthen their businesses for the future at the same time. What are some things you’ve recently encountered through your work with shops that really inspired you or served as an example of a shop using a bad situation to its advantage? MA: It boils down to whether the glass is half full or half empty – it’s a matter of perception. For example, the clients I work with realize we’re all in this together. Maybe you’re friends with a group of shops in your area. You could get together with them, collaborate on training and work together to afford to hire a trainer for a presentation. There are a lot of supply chain issues right now. I have all my 20 Groups, and I work with over 300 shops. When somebody doesn’t have a part in their local area, they send an email to one of my teammates. We then pass it on to our 300-plus shops to see if any of them can find that part in their local market or area. At the end of the day, helping that person means they may return the favor when you have a similar issue. That’s another example of utilizing technology. Some clients of mine have all of their painters set up on a group chat so they can send issues back and forth. There’s no reason why shops couldn’t be a part of an auto body shop association and reach out to others as problems or questions arise. That’s why it’s also important to go to events like the NORTHEAST® Automotive Services Show or SEMA. All of us together are smarter than any one of us alone. H&D: Let’s wrap up with the glass still half full. Interesting things always happen in this industry. What are some things that excite you as we enter a new year?
MA: The OEMs are working on a lot of initiatives that haven’t been announced yet to the industry, but they’re very exciting. I’m excited about the collision notifications that can happen through telematics. I was recently at a shop in Albany, NY that had two General Motors vehicles that were referred to them by OnStar. That’s amazing. The shops that have invested in the OEM equipment and training are really going to start seeing things finally pay off. I’m also excited that Honda/Acura now offer a hands-on scanning and calibration course. As we get through COVID-19, we’re going to see a lot more training opportunities from the OEMs on behalf of shops. Ford now has an e-learning module that people can take to learn how to use its scan tools. The more knowledgeable shops become, the more efficient they will be. H&D
Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).
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