NORTHEAST® Returns
WMABA Annual Meeting Update
Time to Embrace AI & AR Technology
February 2022 Volume 15, No. 2 $5.95
www.wmaba.com
LOWER FREQUENCY + INCREASED TOTAL LOSSES =
A LOSING EQUATION To Repair or Not Repair... That is the Question!
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CONTENTS February 2022
24 COVER STORY
BY CHASIDY RAE SISK
LOWER FREQUENCY + INCREASED TOTAL LOSSES = A LOSING EQUATION
To repair or not to repair…that is the question.
NATIONAL NEWS 12 CREF OPENS APPLICATIONS FOR 2022 SCHOOL BENCHMARK GRANTS AND STUDENT SCHOLARSHIPS Supporting future repairers.
16 NORTHEAST® RETURNS LIVE MARCH 18-20 BY ALANA QUARTUCCIO BONILLO Enjoy the education, equipment and experience of NORTHEAST 2022.
20 ARE COLLISION REPAIRERS READY TO EMBRACE THE BENEFITS OF AI AND AR TECHNOLOGIES? BY CHASIDY RAE SISK Industry experts discuss future tech for shops.
DEPARTMENTS 4
President’s Message
6
Editor’s Message
8
Executive Director’s Message
9
WMABA Annual Meeting Notice
9
WMABA Member Application
INDUSTRY ADVICE: ASK MIKE
17 WMABA Sponsors
32 HOW CAN SHOPS BETTER EDUCATE CONSUMERS ON SUPPLY CHAIN ISSUES?
26 WMABA Board
Prepare your customers for parts delays.
34 Advertisers’ Index February 2022
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PRESIDENT’S
Steven Krieps (304) 755-1146 skrieps@live.com
MESSAGE ESTIMATOR:
IS DEFINED AS…OR IS IT? Being an estimator in today’s shops has more and more become a blurry position. With seemingly endless additions to the day-to-day operations, it has created major levels of burnout amongst those tasked with this role. It creates a position where one writes damage appraisals, researches OEM procedures, orders parts, updates customers, keeps insurers informed, handles supplement entry and submission and possibly even follows up on – the pain in everyone’s life currently – missing parts that have been previously ordered. Is it possible for one person to do all these things efficiently? I don’t think so, not with any level of proficiency anyway. How are shops dealing with this struggle? What can be done? Smaller shops may not have the luxury of simply adding a role or staff member to assist them, like some larger facilities can opt to do. With all the things a modern-day process requires, there has to be some help or backup. Some shops have chosen to use the Customer Service Rep (CSR) to aid in the process by having those in this position assume some prior estimator tasks, such as closing files, updating rentals and customers, along with invoice input and making a day-to-day parts update list for everyone to review. That also comes with its own set of challenges, but it can be a way to spread out the tasks and create some sense of balance. WMABA OFFICERS
PRESIDENT Steve Krieps steve@gregclineauto.com 304-755-1146 VICE PRESIDENT Rodney Bolton boltonconsulting61@gmail.com 443-386-0086 TREASURER Kris Burton kris@rosslynautobody.com 703-820-1800 SECRETARY Phil Rice phil@ricewoods.com 540-846-6617 IMMEDIATE PAST PRESIDENT 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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Some shops have and utilize a front estimator and a backend repair planner, along with the CSR. This can be even more efficient. The additional role of back-end repair planner puts a writer directly in the shop with the technicians as they conduct OEM research, fine-tune the estimate and finalize repair plans. Again, this further segments and distributes the growing administrative tasks that collision repair shops are burdened with, allowing them to load balance and enhance efficiency. Many processes can be implemented, and to identify what works best for your shop, you must examine your setup to figure out what may work best and how you can utilize your personnel more efficiently to improve the process. With parts issues leading the way and overtaking bill payer and cash flow issues, we need solutions which include reimagining some of our shop’s roles and their duties. Continuing to do things the old way will surely be a direct line to problems you may not expect – and definitely don’t need. We have enough to worry about; let’s not allow the good people we have to lose their drive and passion due to feeling stressed and helpless from overload! H&D
STAFF PUBLISHER
Thomas Greco thomas@grecopublishing.com
SALES DIRECTOR
Alicia Figurelli alicia@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR
Alana Quartuccio Bonillo 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.
February 2022
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EDITOR’S
Chasidy Rae Sisk
MESSAGE
302.593.7002 chasidy@grecopublishing.com
THE I-WORD IS WORSE THAN
THE C-WORD! Let’s talk about how my 2022 began: A few days after Christmas, I found out that I had been exposed to COVID-19. UGH! It took days to get tested. The local urgent care centers were maxed to capacity (bet that sounds familiar to some shop owners), and after waiting at a pop-up testing site for an hour, I was turned away when they ran out of tests. I returned the next day, and after 3.5 hours of waiting in the rain, I got a positive result – but it didn’t feel very positive to me! Luckily, my symptoms weren’t severe. I had a sore throat and a case of the sniffles which is pretty typical for this time of year. For me, the worst part of having COVID was the isolation aspect; it drove me crazier than I already am! I live alone, so I’m used to talking to my pets more than I communicate with anyone else; however, I do typically see people more often than bi-weekly. I admit it: I was a little concerned when I found myself arguing with my freezer about how slowly it released ice into my glass or when I yelled at my door for slamming too loudly. It got me thinking about how psychologically damaging isolation can be, and that led me to consider how insurers use this tactic to manipulate shops.
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February 2022
After doing some research into the psychology behind isolation, it’s easy to draw some parallels between social isolation and this concept of “you’re the only one.” Isolation leads to anxiety, depression, uncertainty and resignation, and the subsequent result is often insomnia, digestive issues and even financial difficulties. The pandemic has caused many people to behave as though others pose dangers to their health. Any of that sound familiar? By allowing a third-party entity to impose a form of isolation by insisting that no one else charges for that process and it’s “a cost of doing business,” shops put themselves in an antagonistic position with other collision centers. Sure, the shop down the road is your competitor, but that doesn’t make them your enemy! That would be equivalent to me hating the friend who exposed me instead of despising the disease that invaded my body. Human interaction is vital. An article from the American Psychological Association (bit.ly/APAice) indicates that social connections are “a fundamental human need – crucial to both well-being and survival.” Likewise, networking with industry peers is vital to the success and survival of your shop! Interacting with other collision repair professionals at industry events, attending training sessions and participating in associations like WMABA strengthens your business. If it’s not already on your calendar, register to attend the NORTHEAST® Automotive Services Show in Secaucus, NJ on March 18-20 by visiting aaspnjnortheast.com. And be sure to say “hi;” I’d definitely rather talk to y’all than to my refrigerator! H&D
EXECUTIVE DIRECTOR’S
Forecasts and plans for the future.
MESSAGE
TOTAL LOSSES RISING, HUMAN RESOURCES STRUGGLES, AND PARTS SUPPLY ISSUES:
IS THERE ANY GOOD NEWS?! I’m writing this Executive Director’s message while starting the week in Phoenix, Arizona to attend industry events including the Society of Collision Repair Specialists (SCRS) board meeting and the Collision Industry Conference (CIC). It’s very exciting to come to the meetings, to see the industry coming together to discuss issues and forecast the future of the repair community. Technology, ADAS and Electric Vehicles are dominating the horizon. What’s more frustrating for the entire industry – today - is also being combed over. Parts delays are part of our world supply chain problem, and while some news sources say the problem will subside soon, the people “in charge” are saying it’s just an optic change, while in reality they just moved the ships out of eye sight. The hordes of ships are still out there floating beyond view, without the ability to unload their awaited cargo. These experts have the opinion that this year and part of next year will still be affected. Changing our expectations for customer conversations is going to be necessary. Just like the Total Loss issue discussed in the cover story, our customer service will do much better to engage customers on the outset with reasonable expectations; or more so even, to hedge their expectation to the reality that delays are part of the normal. Anything we know of as a global issue that affects their experience is an easier conversation because the shop is removed. We’re also facing the world problem of staffing shortages. Even aside from the COVID leave employees are having to take in unprecedented numbers, our entire industry is thrust into the stark reality that our teams don’t have depth. It is really visible with sports teams, and our shops are exactly the same. If there was even a small stream of new people coming in, we’d have less piracy between shops. But, fact is, we do not.
There are far more good people leaving our industry than entering in. It’s now a full-on crisis. The only good news I have to offer you for now is that it is at the forefront of conversation at the highest levels. I hope to glean helpful insight into any ability WMABA has to assist in these areas, with effective outcomes. I’m personally forecasting our industry having to take hard looks at rising costs of materials, people, overhead, etc. – if you haven’t already – as it relates to labor or material charges. With the onslaught of everything I’ve already mentioned, and of course much more than this pinhole of three major issues, I just don’t see sustainability without addressing it. The only way you’re avoiding a Labor Rate increase is by substantially cutting costs in all other areas, unless you are happy to lose money. I’m obligated to say, and remind you, that this is always for your informational purposes, and I’m not saying or pressuring you into any change – it is a personal business decision. I can tell you to decide to take a look at it. With all the areas of upset, it’s fun to say we are having a meeting March 24, and you need to come! We’re working on the content possibilities, so check the website, but no matter the “what”, we will be sharing a meal and conversation with our community. These are our people, and we’d do better to stay connected when it comes to weathering these storms! See you soon!
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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February 2022
March 24, 2022 6:30pm
ANNUAL MEMBERSHIP PJ Skidoo’s MEETING & DINNER 9908 Fairfax Blvd. Fairfax, VA 22030
For details, visit WMABA.COM
JOIN ! TODAY February 2022
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NATIONAL
ATTN: Collision schools and students.
NEWS CREF Opens Applications for 2022 School Benchmark Grants and Student Scholarships The ongoing technician shortage poses a problem for many collision repair facilities around the country, and most can agree that the resolution begins with the youth who will become the industry’s future. Unfortunately, many schools’ collision programs are underfunded, while students struggle to pay post-secondary tuition. The Collision Repair Education Foundation (CREF) seeks to alleviate some of those burdens by facilitating the industry’s generosity in the form of its Collision School Career Readiness Benchmark Grants as well as its Student Scholarship awards. In 2021, CREF awarded $329,000 in grants to over 80 schools, recognizing those programs that excel at educating students, but which require additional financial assistance due to constrained school budgets, providing funds to purchase the tools, equipment and supplies necessary to enhance their students’ learning experience and elevate the caliber of their graduates. The 2021 Student Scholarships benefitted 30 students with more than $100,000 awarded in financial assistance to ensure those students are able to continue their education, preparing them to pursue a successful career in body shops around the country. Applications for CREF’s 2022 School Benchmark Grants and Student Scholarships are now open, with a deadline of March 2, 2022. To apply for a Benchmark Grant or Student Scholarship, or to learn more about supporting CREF’s efforts to promote the industry to future generations, visit CREF online at CollisionEducationFoundation.org. H&D
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February 2022
From top: Past Collision Repair Education Foundation grant winners include Thomas A Edison Career and Technical Education High School (Jamaica, NY), and Northwest High School (Clarksville, TN)
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NATIONAL
NEWS
Time to head to New Jersey! BY ALANA QUARTUCCIO BONILLO
Returns Live March 18-20 The NORTHEAST® Automotive Services Show returns to some exciting industry initiatives – or hopefully all of the above! March 18-20 at the Meadowlands Exposition Center (MEC) in – there will be something for everyone at NORTHEAST 2022. We Secaucus, NJ. can’t wait!” The largest regional automotive show on this side of the As in past years, attendees can expect the opportunity to visit country promises to once again deliver an experience that over 150 vendors with the latest equipment, technology and tools automotive professionals from all over the Mid-Atlantic region – returning to the MEC for this year’s show, along with a healthy and beyond – come to expect year after year. offering of educational courses pertaining to today’s collision The 2022 show marks the repair world. 45th year that the Alliance of “Everyone I speak with feels Automotive Service Providers it’s time to get back to normalcy,” of New Jersey (AASP/NJ) will continues McNee. “I think present its flagship event. everything we do at NORTHEAST “This show has become helps a great deal with getting the the only place on the East industry back on that road a lot Coast where you can find the sooner. We all need to step up as latest and greatest automotive an industry, and NORTHEAST is repair offerings and equipment, the perfect place to gather and do networking and education,” states that.” AASP/NJ President Jerry McNee. “Our goal has always been “Coming off the pandemic, to provide all stakeholders – from NORTHEAST is an event the exhibitors and sponsors to, repairers from all around the of course, the attendees – with country can’t afford to miss.” a well-rounded experience at Start making plans for your NJ road trip this March! As per McNee’s suggestion, NORTHEAST,” adds Figurelli. “For this event provides an opportunity for 2022, we remain committed to offering repairers to resume a sense of normalcy and is a can’t-miss event all attendees a tremendous weekend both on and off the show which promises to offer more than ever before with new highlights floor.” and activities. Pre-registration is now open. To pre-register and to keep “It’s no secret that our entire industry has had a rough up with the latest information and announcements about year-plus,” states Alicia Figurelli, vice president of NORTHEAST NORTHEAST 2022, visit aaspnjnortheast.com. H&D event manager Thomas Greco Publishing, publishers of Hammer Executive Director’s Thoughts & Dolly. “At NORTHEAST 2022, we look forward to not only WMABA has reserved the Collision PREP education to reveal ushering in a bit of ‘the old days’ of face-to-face business something in our membership area for 2023, but we still tout interaction and valuable training attendees have come to expect NORTHEAST as the show to go to for all our mid-Atlantic shops. from our event, but we’re also working on some exciting new Standing face-to-face with vendors, and viewing the actual things you’ve never seen before at NORTHEAST. Whether it’s products in person, is still the best way to make decisions. You can participate in the free education opportunities too! Mark exclusive training you can’t get anywhere else, the opportunity to your calendars, and make the drive in March! -Jordan Hendler meet an industry icon, win some awesome prizes, lend your voice
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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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February 2022
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NATIONAL
NEWS Are Collision Repairers Ready to Embrace the Benefits of AI AND AR TECHNOLOGIES? In recent years, insurers and vehicle manufacturers have implemented the use of various technologies in their processes, such as artificial intelligence (AI) and augmented reality (AR), yet more often than not, technological advances tend to create more work for collision repairers, leaving shops behind. But what if those same technologies could be repurposed to benefit repairers? Pete Tagliapietra, managing director of Data Touch LLC, and Frank Terlep, CEO of AutoTechcelerators, shared some insights with Hammer & Dolly on how AI and AR are currently used, how they might benefit collision shops and how repairers can prepare for the technology they’re likely to see in the near future. OEMs utilize AI to streamline workflows, identify possible defects and improve quality control, while insurance companies use AI to automate the claims process and are diligently pursuing “no touch” auto claims through photo estimating. “AI already allows insurers to identify a total loss much earlier in the cycle, often before an estimate is even written,” Tagliapietra explains. “AI also allows them to better analyze the estimate data to more effectively manage indemnity by enhancing their ability to evaluate repair shop performance and compare them. Information providers are also offering AI technology to write estimates, and once the technology is perfected, there will be huge efficiency gains from their efforts.” Tagliapietra believes that AI could prove to be an asset to the collision repair community moving forward. “In today’s world, February 2022 20
none of the OEM repair information options bring everything you need together immediately. Imagine using digital images of a damaged vehicle to immediately generate a list of all necessary repair procedures, pre- and post-repair scans, calibrations, ADAS information and OEM position statements – before you even write your first estimate.” In the future, it will be possible to take photos of the visual damages of the vehicle to include the exterior, undercarriage and under the hood, and then use machine learning to generate the related OEM repair procedures, including which calibrations are needed and which procedures need to be performed for safety reasons, Tagliapietra predicts. AI adoption would allow body shops to increase productivity by improving cycle times, minimizing manual tasks and creating more value for consumers who prefer automation. “In an industry where we contend with so much information on a daily basis, it’s nearly impossible to keep everything we need on our bookshelves, yet we need real-time access to that information. AI will be able to help shops deal with these challenges by identifying exactly which repairs are needed and provide everything needed for that specific job to allow for a more comprehensive estimate.” Tagliapietra also suggests that AI can be used to provide better search and procurement parameters for parts, identify which operations are typically paid for and even provide prevailing competitive rates within a given market. “Machine learning will
Leveraging technology in repairs. BY CHASIDY RAE SISK
notes. “Until the industry fully embraces the use of repair procedures, the ROI for any company wanting to develop these technologies is very low.” Still, companies like Tradiebot, Mitchell International and SimSpray are making progress, according to Terlep. “SimSpray in particular is currently using VR technology as a customizable training tool for large-scale painter training and education programs that reduces training barriers by providing hands-on experiences without the spray booth, materials, setup, hassle or equipment required to start a typical coating project. In this capacity, VR technology can make painter training faster, safer and more efficient.” “AR/VR technologies will dramatically change how the industry delivers training, as well as the way that repair information and procedures are accessed and presented,” Terlep anticipates. “AR/VR will also alter the ways that vehicles present information and data via windshields, windows, mirrors, dashboards and more.” ingest hundreds of thousands of data Terlep foresees an impact on the way vehicles Pete Tagliapietra points which can be accessed on demand, are repaired as AR/VR implementation increases, and because it will include so many shops likely resulting in an increase to the cost of repairs; around the country, it will be much more however, he believes “AR will have a HUGE, positive statistically valid than some of the industry’s impact on access to repair information and procedure other valiant efforts.” platforms when shops accept it and prepare for it.” AR is another trending technology How can collision shops prepare for the being used by vehicle manufacturers and emergence of AI and AR in their facilities and ensure insurance carriers. By providing the user that they reap the benefits of these innovative with an enhanced version of the physical technologies? Tagliapietra and Terlep agree: It all world by using sensory stimuli, such as visual elements and sound, AR is reshaping comes down to education. “Shops need to actively study new technologies the vehicle design and manufacturing that are affecting the collision industry today, as well processes, in addition to being used to Frank Terlep as those that will impact us in the future,” Terlep simulate crash and breakdown situations. Insurers use AR to assess and mitigate risk recommends. “It’s imperative to stay abreast of new technologies being installed on the vehicles they as well as for estimating damage. repair, the equipment used to repair those vehicles, Currently, the collision repair the information and repair procedure platforms, as industry has seen very little use of AR or well as the different education and training platforms virtual reality (VR), and although several they’ll need to ensure their employees are trained to companies have begun developing AR/VR projects, none have progressed to the point properly and safely repair the consumer’s vehicle.” “I truly enjoy interacting with collision repairers of making a big impact – yet. and this entire industry,” Tagliapietra asserts, “The challenge with AR development suggesting, “I wish shops would stay more current right now is how expensive it is,” Terlep CONTINUED ON PG. 29 February 2022
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February 2022
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COVER STORY
LOWER FREQUENCY + INCREASED TOTAL LOSSES =
A LOSING EQUATION As drivers get back on the road, collisions have returned with claim frequency on the path to pre-pandemic rates. Add in increasing vehicle complexity and the cost of both new and used cars, combined with high salvage values and supply chain disruptions, and the result is a total loss –
for the consumer, the insurer and the shop.
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February 2022
Shops appraise the total loss situation. BY CHASIDY RAE SISK
N
Non-comprehensive claims in 2021 increased by nine percent over the previous year but still lag 15 percent behind 2019 figures, according to CCC’s “The Continued and Forecasted Impact of the Pandemic on the P&C Insurance Economy;” however, while overall claims are lower, severity has increased, resulting in higher non-driveable percentages. In fact, total losses now account for approximately 20 percent of claims, and the average total loss vehicle cost in 2021 rose to over $12,500, a figure that previously failed to reach $10,000. “We get a ton of total losses,” says Tim Pfeifle (Tyson’s Corner Collision Center; Vienna, VA). “Traffic seems to be coming back, but people are driving too fast which causes higher severity impacts. The used car market is on fire; vehicles are worth more, so there should be fewer total losses, but these cars are getting railed.” Since August 2019, used car values have skyrocketed by 34 percent, and the average MSRP has reached a record $45,000, leading to an increased age of vehicles on the road as well as elevated salvage values. “Because salvage values are so high, carriers are totalling cars before they should,” notes Steve Krieps (Greg Cline Auto Body; Winfield, WV). “Insurers have enlisted companies like Copart and IAA on severely damaged vehicles, and a lot of cars in my state have been improperly totaled for that reason. “On the other hand, desk estimators at Copart/IAAA sometimes write estimates that don’t total the car, so it sits for a couple weeks before being towed to a shop where it’s disassembled, blueprinted and written for three times the amount written by the desk estimator. The result is a total loss, but the month it takes to make that determination is incredibly inconvenient and frustrating for the vehicle owner.” Frustrations are mounting on the shop side of the equation as well, and some are related to the vehicles that are NOT totalling. “We’re repairing more new vehicles (five years old or newer) than we typically do,” shares Brian Larson (T-Body Auto Body Repair; Mount Clare, WV). “It seems like insurers are pressuring us
to fix more vehicles as used car values increase – including some that maybe shouldn’t be fixed. Being able to repair a vehicle doesn’t necessarily mean it’s a good repair or the right thing to do for the customer. If the shop believes a car should be totaled, we shouldn’t be repairing it.” Larson observes a definitive increase in the frequency of total losses on older vehicles, though, a trend he attributes to parts usage, availability and pricing. This issue originates with advancing vehicle technology and complexity, which has led to more replacement parts being required for each repair, but the dilemma is exacerbated by the inflation in raw materials prices and its negative impact on the supply chain. CCC’s report indicates that the average cost per part rose by more than six percent in 2021, the largest increase since 1997. “Because we only repair European cars, we’re experiencing serious problems obtaining parts when they aren’t in the country,” Pfeifle states. “Our business model prohibits the use of aftermarket (counterfeit) or junkyard parts because we repair vehicles per OEM standards, so that makes it harder to find parts, the parts are more expensive, and the vehicle takes longer to repair.” “Many cars have totalled out simply because we can’t obtain the parts needed,” Krieps adds. “We work with OEMs, regional wholesale suppliers and other vendors, but in some instances, there are literally no parts to be had.” Although his shop’s total loss frequency is roughly static due to rising vehicle values, Danny Szarka (Dynamic Collision Services; Baltimore, MD) has dealt with some interesting circumstances: “We’ve had a lot of different situations and variations that we’ve never encountered before. Recently, a car was totaled over a blind spot bracket that only costs $18.33! The vehicle was 98 percent repaired, but even though we tried every resource we could think of – and the insurer even reached out to Copart to try to source the part from a similar vehicle that had been totaled – we couldn’t acquire it. We try to verify and order all parts as soon as we complete our CONTINUED ON PG. 28 February 2022
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An association fostering the exchange of ideas and providing a voice and support for the collision repair professional.
Position Your Business as a Leader!
OFFICERS
PRESIDENT: Steven Krieps srkrieps@live.com 304-755-1146
VICE PRESIDENT: Rodney Bolton rbolton@aacps.org 443-386-0066
TREASURER: Kris Burton kris@Rosslynautobody.com 703-820-1800
SECRETARY: Phil Rice phil@ricewoods.com 540-846-6617
PAST PRESIDENT: Torchy Chandler torchy.chandler@gmail.com 410-309-2242
BOARD OF DIRECTORS
Don Beaver don.beaver3551@gmail.com 443-235-6668
Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment. WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, VA and WV collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities. Automotive collision repair facilities in Maryland, Virginia, West Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level. WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer & Dolly.
EXECUTIVE DIRECTOR: Jordan Hendler jordanhendler@wmaba.com 804-789-9649
Bill Hawkins hawkinswilliamjr@gmail.com 510-915-2283
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February 2022
John Shoemaker’ john.a.shoemaker@basf.com 248-763-4375
“
Contact Executive Director Jordan Hendler to find out how WMABA can amplify YOUR voice in the collision repair industry.
February 2022
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COVER STORY CONTINUED FROM PG. 25
Educating consumers is important, but shops often struggle more when it comes to justifying why certain repairs are necessary to insurance adjusters. blueprint so we can order our parts before the next guy does, but only so many parts are available. We set that expectation as soon as we bring a car in, so the vehicle owner understands what challenges we’re facing when it comes to acquiring the parts needed for their car.” Parts delays worsen when photo estimating enters the calculation. “Insurance companies benefit from photo estimating because it allows them to write the cheapest possible estimate,” Pfeifle believes. “It saves them millions of dollars, but it’s costing shops a tremendous amount of additional administrative time and effort.” “The customer isn’t getting an accurate estimate using photos,” Larson agrees. “The inaccuracy of photo estimates causes delays in the shops because we have to wait for parts that weren’t included on the original estimate, or we start repairs on a vehicle based on that photo estimate, only to realize that it should have been declared a total loss. Either way, the customer goes longer without their vehicle.” “Customers are already in a bad mood when they’re having vehicle issues, and their irritation only grows when I tell them the insurance adjuster neglected to include needed parts on the estimate and the repair is going to take an extra week while I wait to receive the rest of the parts,” Larson continues. “Everything is on backorder, so it’s not our fault, but I also can’t blame the customer for being frustrated. All I can do is empathize and apologize.” Szarka tries to circumvent some of these inconveniences by inviting customers to come to his shop and allowing his staff to process the photo estimate for them. “With calls to insurers averaging an hour or more, it’s the fastest way to get the first sheet written and set up the rental, plus it allows us to order parts soon. Even more importantly, it gives us a chance to win the customer’s trust and enhance that
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relationship. The best thing we can do, whether we suspect the vehicle is a total loss or if it can be repaired, is to get it into the shop so we can take a look and help the customer.” The entire situation hurts consumers, and in some cases, customers are buying back their cars when they total, according to Szarka. Pfeifle points out, “Even though customers may receive more money on a total loss than they used to, cars aren’t readily available for them to purchase, so they’re paying premium dollars for their replacement vehicle.” “Consumers are fuming,” Krieps adds. “Their vehicles are moved without their authorization, and they’re unable to obtain rental cars, but the biggest challenge is that the valuation systems being used come up with low offers given the market, and any informed consumer is going to challenge that value. Unfortunately, consumers’ complaints don’t seem to go anywhere.” Krieps believes the solution can be found in education. “As long as we’re upfront about everything and keep everyone informed, we haven’t had many problems.” Educating consumers is important, but shops often struggle more when it comes to justifying why certain repairs are necessary to insurance adjusters. “We fix vehicles to OEM standards,” Larson explains. “Our challenge is teaching the insurer’s adjuster that the vehicle manufacturer requires us to do these extra steps, even if their system doesn’t say it’s required. Their SOP may say one thing, but that doesn’t necessarily mean it’s the right way to fix the customer’s vehicle.” “While insurance carriers still like to tell us we’re the ‘only one,’ the level of documentation we keep prevents most major issues,” Krieps says. “When they push back, it’s ultimately a business decision about whether we want to fold, but with the proper documentation, there’s not much they can do.”
NATIONAL NEWS: AI & AR TECHNOLOGY CONTINUED FROM PG. 21
At the same time, insurers contend with similar issues as body shops in terms of staff shortages, and Krieps sympathizes with them: “They’re overwhelmed and frustrated too. In my market, most insurers don’t have field staff, so they’re hiring independent third-party firms which creates so much smoke that you never know who to talk to when there’s an issue.” “Phone wait times to reach an insurer start at an hour because they’re swamped just like we are,” Szarka acknowledges. “Adjusters are maxed to capacity with up to 50 cars in their portfolio, so there’s no way they have the time they need to accurately write an estimate.” Understaffing at insurance companies leads to other problems for shops, including a lack of storage space, according to Pfeifle. “We’ve had multiple cars sitting on our lot for over a month because insurers are so shorthanded that they just can’t process the paperwork fast enough.” Facing so many daily struggles makes it easy for shops to get discouraged and disillusioned since so many things are out of their control, but many collision professionals know it’s just a matter of doing the right thing. “Our customers pay for coverage and deserve an accurate assessment,” Larson stresses. “We fix their car right and keep them informed through the process. All we can do is our best for them.” Krieps believes the key is being “very transparent with our customers so they know exactly what’s happening the entire time we have possession of their vehicle.” “We can’t control what’s happening or the problems that are created,” Pfeifle laments. “It is what it is, but by communicating with customers, we can help them understand that any delays or added expenses are related to ensuring their car is safely and properly repaired.” Szarka concurs that some aspects are out of the shop’s control, but he also suggests the solution can be found within the problem itself: “Everyone is dealing with the same things. All businesses are short-staffed and frustrated, and each situation is different. Yes, we’re making decisions based on the facts in front of us, but those facts change every day, so we have to learn to adapt if we want to turn these negative circumstances into a positive outcome.” H&D
with what’s going on. For many shops, their biggest weakness is their inability to pay attention to what’s happening in the industry and what’s available to them to improve efficiency because they’re so busy repairing vehicles. With so much coming, repairers need to stay informed now more than ever. “For too long, the focus has been on providing the insurance community with better technology, and it’s time for it to come full circle to benefit shops. The technology already exists and is gaining momentum. Applying it to the body shop side will enable us to leverage the same technology used by insurers and manufacturers to create a better way for body shops if we can just embrace it.” H&D
Executive Director’s Thoughts Though ROI will dictate industry momentum in these areas, as Pete said, it would be a leap in estimating - and thus repairing vehicles if the technologies applied in the insurance side would cross over. Their ability to dissect data or get assist with repair planning has already been far above ours. It would be awesome to see that gap of technology narrowed! -Jordan Hendler
Executive Director’s Thoughts So much of the total loss process is outside of the repairers’ control, yet as many have expressed, it’s still our responsibility to convey the details and in many cases, the delays and bad news, to the consumer. -Jordan Hendler
February 2022
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INDUSTRY
ADVICE
ASK MIKE:
How Can Shops Better Educate Consumers on Supply Chain Issues? This month, we “ASK MIKE” to share his thoughts on how shops can better educate consumers on supply chain issues. 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 industry-related matter that he can answer in a future issue. H&D: Repair delays have always been a part of this industry for a number of reasons, but the biggest delay right now stems from supply chain issues. Some shops have been waiting months for even minor parts to arrive. Naturally, this has caused major delays and added grief for consumers. How can shops effectively educate consumers on the problems caused by supply chain issues to hopefully add some understanding and comfort to what is increasingly becoming an uncomfortable situation for many? Mike Anderson: When the pandemic first started, vehicle owners were somewhat patient when you told them something was on backorder or someone was out because of COVID-19.
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But today’s consumers are not patient at all; they are much more demanding now. That is something I hear all across the country. I think of this situation as a triangle. Think of the whole triangle as increments of time. The top of the triangle is zero minutes, and the bottom is 45 minutes. We need to invert that triangle and spend more time with the customer up front and educate them on the supply chain challenges. We also need to educate them on things their insurance company may not be willing to pay for to achieve a safe and proper repair. If we really spend time explaining the process to the customer and let them know up front about some of the delays we may encounter, it will help us minimize some of those frictional conversations that we could have throughout the repair process. Shops also need to have conversations with their parts vendors and tell them, ‘Look, if you don’t have a part in stock, I need you to reach out to other people outside of your network for me.’ Oftentimes, you have dealers who won’t look for a part at another dealer because they don’t want to lose that sale or honor your discounts if they have to obtain that part from somewhere else. Shops need to have discussions with their vendors and maybe say, ‘If you don’t have a part but you can get it somewhere else, I might be okay if you can’t give me the same discount.’
Communication is key.
There are a lot of great websites out there, like partsvoice. com and partseye.net, that people can utilize to help with supply chain issues. If you go to the ‘Forms-Tools-Links’ section of my website, collisionadvice.com, there are several OEM parts websites listed for free. Technology will help you find parts, but it’s important that you use an electric parts ordering software solution – like CCC’s TRUE Parts or OEC’s CollisionLink – to try to source your parts electronically so you can reach outside of your normal market area to find them if you have a supply chain issue. H&D: Are there any particular repairs that seem to be delayed more than others these days? MA: Initially, a lot of people thought the supply chain issues were around electronics because of chip shortages. But honestly, it can be bumper covers or headlights. I know a shop that is certified for a specific European manufacturer, and the structural adhesive required is on backorder. I’ve seen it affect all aspects of repair. H&D: After almost two years of this pandemic, what are some other delay issues that have become commonplace in this industry? MA: There is a major staffing shortage in addition to the supply chain issues. Many shops have more work than they have people. That is partially because shops had to make some hard decisions during COVID-19 to let people go; in some cases, people chose to get out of the industry. We’re competing with other industries to offer competitive wages, which makes it more difficult to recruit and retain staff. H&D: In addition to causing headaches for consumers, repair disruptions and delays can impact a shop’s relationship with an insurer. What have your clients been telling you as far as how these issues have affected their DRP or referral arrangements with carriers?
H&D: Obviously, it’s important to always look at the glass as being half full in situations like these. There have been so many challenges that shops have risen to over the last two years. With that in mind, do you see any advantages for shops in the current state of affairs? MA: Absolutely! Taking in all your cars on Monday and Tuesday mornings at 8am is just insane. Using social distancing as an excuse to stagger your drop-offs helps you to have a more even workflow and ultimately be more efficient. That’s a silver lining. The employee shortage has really made us look at maximizing our efficiency with our body technicians. Our industry has made a lot of progress in the past five to 10 years in regard to improving the efficiency of our paint departments, but the pandemic has forced everyone to reevaluate whether they are really using their most experienced technicians in the most efficient way possible. This has helped us utilize them more to their strengths and expertise. There are definitely some positives coming out of this, for sure. 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).
MA: There are some insurers that make shops give them discounts if those facilities don’t achieve specific cycle time goals. I’ve heard that some carriers have temporarily waived those discounts, but I don’t know if that’s true or not. There are things that are out of a shop’s control, and they need to have discussions with those carriers if they’re a DRP. They need to say, ‘Hey, I can’t control some of these things, and you can’t financially penalize me for that.
February 2022
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