Hammer & Dolly February 2024 by Thomas Greco Publishing, Inc.

Cultivating Talented Technicians In-House

Rate Insurance Companies in 2024 Survey

February 2024 Volume 17, No. 2 $5.95

www.wmaba.com

T U

O T

OW OR

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Positioning Your Business for Success and Sale

www.grecopublishing.com

February 2024

CONTENTS

28 COVER STORY by Chasidy Rae Sisk & Alana Quartuccio

GROW OR GET OUT: POSITIONING YOUR BUSINESS FOR SUCCESS AND SALE Are you looking to expand?

WMABA FEATURE 10

WMABA INVITES COLLISION REPAIRERS TO RATE INSURANCE COMPANIES IN 2024 SURVEY Providing insights into insurer practices.

LOCAL NEWS by Chasidy Rae Sisk

MORE TO LOVE AT THE 2024 SOUTHEAST COLLISION CONFERENCE

DEPARTMENTS

Registration is open.

INSIGHT AND INFLUENCE: WMABA WELCOMES TWO NEW BOARD MEMBERS Adding even more experience to a seasoned group.

LOCAL FEATURE by Chasidy Rae Sisk

GROW FROM WITHIN: CULTIVATING TALENTED TECHNICIANS IN-HOUSE Looking for fresh talent?

Editor’s Message

Executive Director’s Message

WMABA Member Application

11 WMABA Sponsors

NATIONAL FEATURE by Alana Quartuccio

22 SCAN TOOL ESSENTIALS BEYOND THE PUSH OF A BUTTON

Find out what goes into picking a scan tool.

INDUSTRY ADVICE: ASK MIKE

27 WMABA Board of Directors 34 Advertisers’ Index

32 WHY DO IN-PERSON INDUSTRY EVENTS STILL MATTER? The benefit of being with collision repair peers. February 2024

EDITOR’S

Chasidy Rae Sisk

302.593.7002 chasidy@grecopublishing.com

MESSAGE

MOM-IN-TRAINING

A year and a half ago, I felt like my life was pretty much under control. I had my car, truck and motorcycle paid off and had a great mortgage interest rate thanks to my 2021 refinance. I finally had my dream job as the managing editor of some great magazines (if I do say so myself), and overall, my life ran smoothly. I understood what each day would look like and how to juggle a ton of responsibilities. Then I took a pregnancy test. I realized immediately that my life was going to change. I’ve been around a lot of kids (I’ve been blessed with an amazing bonus kid and 14 godkids), but I knew it would be different when I had my own child, one that I was 100 percent responsible for, one that I couldn’t send home after getting them all hopped up on sugar…however, I didn’t really understand how different it would be! I spent my pregnancy “training” for motherhood. I downloaded apps and read about the different fetal stages, and I studied several books on pregnancy and newborns. I watched videos, joined parents’ groups on social media and even attended classes online and in person as I prepared myself to be the best mother I could be. When I went into labor, every plan I had went out the window because my daughter had her own ideas about how she was going to make her appearance on this earth. And that was my first indication that things may not go exactly how I expected them to go. Within days, I found myself reading ahead in my parenthood books because Camyrah was already trying to hold her head up and doing other things babies aren’t supposed to do right away. And as she approaches her six month “birthday,” that trend continues; I’m constantly looking things up, learning something new and training for a new stage of her development and my motherhood. That’s the one thing I absolutely did NOT prepare myself for (how could I?!) – how fast she advances! Everytime I think I’ve got the hang of this parenting thing, she levels up, leaving me lightyears behind as I try to figure out what she needs from me now. A couple months ago, as I scrolled through Facebook, Instagram WMABA OFFICERS

PRESIDENT VICE PRESIDENT TREASURER SECRETARY IMMEDIATE PAST PRESIDENT

Steven 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@gmail.com 410-309-2242

BOARD OF DIRECTORS

Tom Brown (thbrown@ppg.com) 703-624-5819 Tracy Dombrowski (tracy@collisionadvice.com) 571-458-0648 Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928

ADMINISTRATION

Bill Hawkins (hawkinswilliamjr@gmail.com) 510-915-2283 John Shoemaker (john.a.shoemaker@basf.com) 248-763-4375

EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116

February 2024

and LinkedIn, I saw post after post by industry friends who attended SEMA 2023 while I sat on my couch with an infant, and it got me thinking about how keeping up with all these changes and advances my daughter is constantly going through has given me a whole new appreciation for collision repairers and the need to continuously invest in training and education to stay abreast of technological changes that impact how vehicles need to be repaired. My pockets hurt from buying new size clothes and toys to keep Cami engaged as she learns and grows…but that’s NOTHING compared to the thousands upon thousands that shops invest in new tools and equipment each year! And just like every collision repair facility and each employee is different with varying needs, so are babies. One size doesn’t fit all; what works for one does not work for everyone else. So, there’s a lot of trial and error as we give new gadgets a spin or experiment with new methods of doing things. I suspect it’s going to remain that way for the foreseeable future – for me as a new mom and for you as collision repair experts. And it’s exhausting and stressful, and at times, I’m wondering what the hell I got myself into! But every time I look at my girl’s sweet little face, I know it’s worth it, so I’ll keep researching every milestone and ordering recommended toys to help her talk, walk and learn faster (even as I cling to this stage and dread how quickly she’s growing up). Hopefully, you feel similarly knowing that your investments allow you to offer safe, reliable repairs to your customers and their families, so that means that you’re going to continue investing in the training, tools and equipment you need to keep up all the good (hard) work, no matter how painful it can be at times. Make sure you’ve got your calendars marked for the NORTHEAST® Automotive Services Show, taking place March 15-17 at the Meadowlands Exposition Center in Secaucus, NJ (more info at aaspnjnortheast.com) and the Southeast Collision Conference, scheduled May 16-18 at the Greensboro Coliseum Complex in Greensboro, NC (additional details on page 12). H&D HAMMER & DOLLY STAFF PUBLISHER

Thomas Greco thomas@grecopublishing.com

SALES DIRECTOR

Alicia Figurelli alicia@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Quartuccio 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 @grecopublishing

www.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 © 2024 Thomas Greco Publishing, Inc. Stock Images courtesy of istockphoto.com.

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February 2024

EXECUTIVE DIRECTOR’S

Be there or be square.

BY JORDAN HENDLER

MESSAGE

THE IMPORTANCE OF BEING IN THE ROOM As I write this message, we are days away from the January 2024 edition of the Collision Industry Conference (CIC) and related industry events in Palm Springs. Hopefully you were part of the group who helped kick off the year to discuss not only the challenges being faced by repairers every day, but also the solutions being put in place to ultimately help everyone in the end. The aftereffects of the conversations that happen in these rooms will be no doubt be felt throughout the rest of the year. Before you know it, the year that has just started will be coming to a close. And when it does, what will you have contributed? Will you be proud to have been in the room, part of these discussions that will undoubtedly have changed our industry for the better? Or will you be on the sidelines, left behind, wondering what happened behind the closed doors? I’ve got news for you: The “doors” to this industry are very rarely closed, from a metaphorical and literal standpoint; quite the opposite, actually. As an example, the Society of Collision Repair Specialists (SCRS) holds quarterly open board meetings in various places across the country, and invites industry professionals to sit in on discussions about the organization’s activity and initiatives. CIC meetings are similarly open to anyone from any sector of the collision repair industry with an interest in creating a more professional industry. And closest to home, WMABA is at your fingertips, from our phone line ready to take your calls and questions, to the magazine you hold in your hands (or swipe through on your mobile device), to the industry-leading education and networking available at the upcoming Southeast Collision Conference (details on page 12). All of these resources are readily available to you. But like anything that is important, you only get out

what you put into it. If you are taking the initiative to read about these events after the fact in places like this very magazine, that’s great! Honestly, you’re already ahead of some of your colleagues. But it’s not enough. I cannot emphasize enough how many important conversations, solutions, strategizing and good, old-fashioned business dealings take place IN-PERSON at these events, whether it’s a WMABA member gathering all the way on up to networking with hundreds of thousands at SEMA in Las Vegas. If you are faced with a challenge in your day-to-day and want to be part of the solution, you need to be part of the conversation. And in so many cases, that means you need to be in the rooms where those conversations are happening. I hope that I see you in Palm Springs, but if not, make it a point to get yourself over to the Greensboro Coliseum in May for the 2024 Southeast Collision Conference. There, we will have countless opportunities for our association and industry members to learn from one another, whether it’s in a classroom or over dinner and drinks. And maybe this time a few months from now, somebody will be reading in our magazine about the work YOU did to make things better for the rest of us! See you soon (I hope)!

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. 6

February 2024

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February 2024

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February 2024

WMABA

Share your thoughts.

FEATURE WMABA INVITES COLLISION REPAIRERS TO

RATE INSURANCE COMPANIES IN 2024 SURVEY Which insurers are the best? Which are the worst? It’s time for shops to weigh in! As part of its ongoing efforts to support the collision repair industry by providing consumer-driven resources, tools and information, WMABA has opened its 2024 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 MidAtlantic 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 collision repair shops to educate consumers about these carriers and can be used as a conversation starter with customers.

WMABA hopes the information collected on approximately two dozen carriers will also be beneficial when approaching consumer protection agencies regarding inappropriate insurer behaviors in the future.

the first iteration can be found in the May 2019 issue of Hammer & Dolly (available at grecopublishing.com/hammer-anddolly-may-2019), and results from the 2022 version were published in May 2022 (grecopublishing.com/hammer-anddolly-may-2022). Results from the 2024 WMABA’s 2024 Insurance Survey Insurance Survey will be available in an covers a plethora of topics, including: upcoming issue of Hammer & Dolly, so Shop Relations - Claims stay tuned to find out how your experience Handling with insurers compares to other shops’ Customer Experience interactions. Insurer Knowledge Base The only way to effect change is for Overall Fairness all collision repairers to use their collective Insurer Payment for Proper voice to stand up for their customers, their Procedures shops and the industry at-large. WMABA’s Transparency Insurance Survey offers a quick and easy way to share your thoughts and be part of Collision shops will rate each insurer positive progress. on a scale of 1 (worst) to 5 (best). This will Help WMABA protect consumers and be WMABA’s third Insurance Survey, since collision repairers by completing the survey its debut in December 2018; results from at wmaba.com. H&D

We want to hear from you! Tell us which insurers are the best and which are the worst; we want you to weigh in!

has opened its 2024 Insurance Survey! Help WMABA protect consumers and collision repairers by completing the survey at wmaba.com. 10

February 2024

WMABA THANKS

YOU

WMABA thanks their generous supporters of the

LEVEL 1

Corporate Sponsor Program for 2024!

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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LOCAL

NEWS MORE TO LOVE AT THE 2024 SOUTHEAST COLLISION CONFERENCE With Valentine’s Day just around the corner, you’ve probably got a list of things that need to be done, like ordering flowers and reserving a table at your partner’s favorite restaurant, but there’s another reservation you should start thinking about this month…registration is open for the 2024 Southeast Collision Conference (SCC), taking place May 16-18, 2024 at the Greensboro Coliseum Complex in Greensboro, NC, and this year’s event promises to be even bigger and better than its first two iterations. WMABA will once again be partnering with the Carolinas Collision Association (CCA) to host the SCC in an effort to strengthen the “professionalism and business conditions for the professional collision repairer” by curating a conference jam-packed with the education, exhibitors and excitement that is quickly becoming synonymous with this conference. And the associations are working to give attendees even more to love in May! “Besides bringing the best possible education to our region yet again, our main focus is on providing attendees with more interactive and hands-on experiences,” said WMABA Executive Director Jordan Hendler. “It’s going to be even bigger and more

February 2024

exciting.” The new venue boasts more than twice the exhibition space as the 2023 trade show, allowing for more vendors but also giving vendors the opportunity to secure larger spaces which will allow for more demonstrations on the floor (like last year’s impromptu dent-pulling demo at KECO’s booth)! Currently, submissions for WMABA’s Collision P.R.E.P. (Professional Repairer Education Program) educational agenda are being reviewed and finalized as event organizers line up nationally known trainers for the 2024 “collision revival.” While details are still being kept under wraps, Hendler shared a few hints with Hammer & Dolly readers about what topics they can expect to see on the training slate. “SCC attendees will definitely have a chance to take their repair planning knowledge to the next level with some of the most brilliant minds in the business, and we’d be remiss if we didn’t include information on ADAS and calibrations to help repairers stay on top of the technological advances they’re seeing in their shops,” she predicted. “You can also anticipate a look at the future of repair processes, including a glance at next generation tooling, equipment and OEM certifications.”

More hands-on experiences to get excited about!

BY CHASIDY RAE SISK

SCC attendees can expect another banner year of national-level discussions, seminars and information presented by some of the most brilliant minds in the business! (The 2023 SCC included invigorating presentations from Mike Anderson (top photo); AirPro Diagnostics’ Josh McFarlin on increasing profits through calibrations (bottom left); Jake Rodenroth, Mark Allen, Kelly Logan, Barry Dorn, Michael Bradshaw discuss the evolution of EVs (bottom right).

Another important seminar that Hendler anticipates will focus on workplace culture. “The need to work with employees to increase their happiness and productivity is a largely untapped topic in collision industry educational offerings, and we want to help shops better understand how to improve their culture so they’ll have more success when it comes to recruiting and retaining quality employees. That’s just one of the ways to build a shop’s value, which will likely be the focus of another presentation.” After last year’s highly praised panels, it’s no surprise that Hendler believes that the 2024 agenda will also feature several roundtable discussions, including an association-led panel on current industry and market issues which will likely be an open forum format that enables attendees to interact with panelists.

WMABA and CCA promise “a premier experience with many takeaways to improve their daily lives as collision repairers, and it’s a priority that those who are instructing our participants be on the leading edge of their field,” Hendler stressed. “Our teams are hard at work on the planning and preparation of a fantastic education program with opportunities for all segments of collision repair.” The full agenda, complete with participating sponsors and vendors, will soon be available here at southeastcollisionconference.com. Learn more about WMABA at wmaba.com, and additional information about CCA can be found at carolinascollisionassociation.com. *All scheduled and anticipated seminars are subject to change. H&D February 2024

LOCAL

NEWS INSIGHT AND INFLUENCE: WMABA WELCOMES TWO NEW BOARD MEMBERS Collision repair facilities in the Mid-Atlantic region and the industry professionals they employ have benefitted from WMABA’s existence for over half a century. From offering local educational opportunities to representing the industry locally and nationally, the association acts in repairers’ best interests, but those efforts would not be possible without a strong Board of Directors with diverse experience providing insight into the industry’s current needs and influencing the path the association takes in its efforts to best support shops. Continuing this 55-plus-year legacy, WMABA is excited to welcome two new members to its Board of Directors: Thomas Brown of PPG Automotive Refinish and Tracy Dombrowski from Collision Advice. Let’s get to know them a little better! Brown began working in the collision repair industry while attending school in 1986 because he “enjoyed working on automobiles as well as learning continuously.” Just two years after starting his career, he “became involved with WMABA by attending meetings to learn more about the industry as well as to meet the key people who influenced the collision industry [because] I believe it is important to be involved with the association to help educate people in the industry to help them be better informed as well as to grow myself.” After so many years in this field, Brown has enjoyed many unique

February 2024

opportunities, and he shared a fun (and for many, relatable!) memory from years ago: “One year at NACE, after working the show with a coworker, we went out all night, and as we were coming back in the morning, our general manager was leaving the hotel – headed to the show – and asked us to join him to work the show that morning. That was a long 48 hours, and I do not believe I could do that today!” In his new role as a WMABA Board member, Brown hopes “to be able to contribute to the industry that has been able to provide a career for myself as well as others that I have met along the way. I hope to be able to bring in new members who want to grow and experience continued improvement in our industry.” Although Dombrowski is a brand-new WMABA member, her collision industry career commenced over 20 years ago. “I was working for a training company in Denver, CO, and one of the accounts I was given was DuPont Automotive,” she recalls. “I fell in love with this industry and the people who work in it. I have always been impressed by the passion and the desire to help others, as well as to improve the industry.” She believes that associations are a vital part of making that happen. “Association involvement is important today because it allows collision repair owners and operators to connect and benefit from one another. Associations bring educational opportunities that are critical,

Tracy Dombrowski

Tom Brown

such as information around repairing vehicles safely and properly, leadership principles, negotiation skills and so much more. Associations are the voice of the collision repairers in the area, ensuring members are represented properly and monitoring legislation that could impact members.” Working at Collision Advice has

Setting out to strengthen shops.

BY CHASIDY RAE SISK

Give your customers the reliability and quality of Genuine Parts. certainly given Dombrowski a perspective that will be useful in her new role. “At Collision Advice, we are often working with all stakeholders at a national level, including OEMs, insurers and collision repairers,” she shares. “I’m excited to be able to share some of the insights those interactions have provided and help collision repair shops closer to home. As a WMABA Board member, my goal is to provide value for members through my relationships with the OEMs, as well as being able to support their current initiatives, including helping local area members acquire and grow new technicians. “I am aware of the longstanding reputation and legacy of the WMABA association,” she adds. “My hope is that I may continue to support WMABA in a way that would make past officers and the Board of Directors proud.” It seems likely that Dombrowski and Brown Repairs will both accomplish Quality Start With that goal. Welcome to the WMABA team! H&D Volvo Genuine Parts.

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February 2024

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February 2024

LOCAL

FEATURE GROW FROM WITHIN: CULTIVATING TALENTED TECHNICIANS IN-HOUSE Are you constantly looking for new technicians, painters or estimators to staff your shop? Does it seem impossible to find qualified, talented help these days? You’re not alone. Lots of shop owners report feeling the exact same way. But that’s not the case for everyone. Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA) found a way to combat the technician shortage that his facility was facing by shifting his outlook 10 years ago. “We started ‘growing’ our own technicians in 2013,” he shares. “We decided that hiring techs from other facilities wasn’t in our best interests in most cases because they have their own way of repairing vehicles that may not be the way that the OEM requires us to repair them. Building our own technicians allows us to train them to repair vehicles the way the OEM requires; they only know one way of doing things, the right way, so we avoid introducing bad techniques to the facility.” Developing talent from within the organization requires a certain type of environment. “The culture here is the most important aspect of what we do,” Dorn insists. “Recognizing that we must have a collaborative environment, which involves ongoing improvement, is critical to our mission.” Building a culture of continuous improvement is imperative because this younger generation of collision repair professionals want to learn and advance. Joseph B. Lewis (“Raven”) has worked as a technician for the past six years. He studied auto body at a technical high school in 11th and 12th grade, and as a senior, he started his first tech job at a small shop that a friend told him about. He continued working there, doing insurance and restoration work, after graduation for several years, but “I really felt like there wasn’t much movement,” he recalls. “I wanted to kind of go up. I heard about this shop my aunts and uncles were telling me about, so I went there, which

February 2024

was Dorn’s Body and Paint with Barry Dorn. They hired me, and it was definitely a whole different animal than the last shop I worked at. It’s definitely a move up.” What makes working at Dorn’s such an improvement? The ability to continue gaining certifications and advancing his career in the industry means a lot to Lewis. “Since I started working here, they’ve sent me to get my certification in KECO GPR+, I-CAR and hopefully OEM training going forward,” he shares. “Dorn’s is willing to invest in you to help you grow, whether that means providing tools for someone coming straight out of high school or enrolling you into I-CAR classes.” For Lewis, the most exciting part of working in collision repair is seeing “how far we’ve come in this industry. At the previous shop I worked at, we used to drill holes and use a slide hammer to pull dents, and now at Dorn’s, I use a process called GPR+ which has no back side damage.” Working for a shop that offers opportunities to learn new things and advance in his career is a key ingredient in job satisfaction for Lewis, who says, “I personally want to learn as much as possible, so I can go into a situation fully confident that I can get the job done the correct way.” As a shop that embraces advancing technology like ADAS and EVs, it’s vital that repairs be completed properly. “This is the future of our industry; vehicles will only get more and more complex to repair due to customer, OEM and insurer demands,” Dorn acknowledges. “The client wants convenience, the carriers want safety to lower bodily injury expenses, and the OEM wants the vehicle to be the exact same as it was prior to the loss without harming the OEM’s branding perception at trade in or lease turn in. The OEMs are also very concerned about crash safety once the vehicle is involved in another loss.” Working at a shop that embraces technological advancements seems to hold an additional appeal for many

Grow your own!

BY CHASIDY RAE SISK

So,Born whereto does Dorn find these apprentices? “We work Vans. run.

Get customers on and the we road with withyour various technical back schools, alsofaster run ads looking for Genuine Sprinter apprentices. This is Parts. something you must consistently do…not just

when need someone. long-term Call our you Sprinter Certified Parts These Advisorsshould today tobe getconsidered started. strategies and not short-term fixes.”

301-890-3060 Fax: 301-890-5473 Sprinter Silver Spring mbsilverspring@mileone.com 3301 Briggs Rd. LewisChaney encourages students to have confidence when looking Hours: M-F 7:30am-5pm, S 8am-3pm Silver Spring, MD 20904

Joseph B. Lewis “Raven” serves as a shining example of the successes of growing technicians from within a shop.

younger industry professionals. “Apprentices want to work with their hands and their minds. They want to know how it must be done, and they need a workflow that explains this clearly. They expect to use a laptop and their tools,” Dorn notes, though he admits, “They can and do get overwhelmed at the massive amount aru and Volvo of datafax: that they must process for every single repair and the time that it takes to read the procedures.” x# is wrong.. Pairing apprentices and other less-experienced new hires with mentors makes the learning process much smoother. According to Lewis, “It’s very helpful to have access to mentors at Dorn’s, who are willing to teach me new things and help me grow, especially 39 coming from a shop that didn’t have one to now having someone that can show me different ways and more importantly the OE way.” Of course, challenges exist in every situation, including for shops that develop technicians internally. “The issue is and always m will be the time and financial investment that you must make to and mentor person(s),” 00pmStilltrain reviewing sothe willright advise whenDorn all explains. good. “This takes years to do, and the process is not the quick fix that most are looking for. You must make sure that any employee mentoring an apprentice has the skill set to teach people. Most do not have this skill set. So many experienced technicians see training apprentices as something that slows them down or someone who can take their position away. But once you do find and educate the right person or people, the benefit is that they only know one way of repairing collision damaged vehicles.”

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for an employer: “Don’t be afraid of the larger, better-equipped shops that seem like they would never hire you because they just might. I wish I had started somewhere like Dorn’s sooner.” Dorn offers some advice for shops that are struggling to find fresh talent and looking to develop an internal apprenticeship/ mentorship program. “Speak with your technical staff and your managers first and obtain their buy-in. The entire facility must agree to be a part of the process; if they don’t, the process will not work. You need to consider the tooling that you will buy as well. The days of expecting the apprentice to absorb all tooling and training costs are now gone. You must be honest with the apprentices and make sure that they understand that this is a career path and the process will take years to accomplish. You must set monthly and yearly goals for both the apprentices and mentors. They need to always know where they stand at all times and if they are making the agreed upon process goals. “You will quickly find out if you have the culture within your facilities to do this correctly. It won’t work if everyone is expecting it to fail or simply go away, but if you involve everyone from the beginning and tell them your expectations and the apprentices have a good attitude towards the process, it can be truly rewarding,” Dorn adds. “I can’t say growing our own technicians is pushing the easy button, but it’s the right thing for the future and has to be done for our industry’s survival.” H&D

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February 2024

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February 2024

NATIONAL

FEATURE Scan Tool Essentials: Beyond the Push of a Button

The act of pre- and post-repair scanning has become an essential part of collision repair. In fact, in today’s computerized vehicle space, it’s a non-negotiable operation; however, some may not realize that the operation goes deexper than the act of just using a scan tool, therefore conversations continue to take place around the collision repair industry about what essential components are involved when it comes to properly using scan tools. Scanning goes well beyond reading and clearing codes. Properly diagnosing ADAS and calibration related issues comes down to using the right tools, obtaining the right procedures and knowing what resources to tap when questions arise.

February 2024

As a result, the Collision Industry Conference’s Emerging Technology Committee has been taking a closer look at scan tool essentials to ensure that collision repair professionals have a better understanding of what goes into picking out a scanning tool. “We have a standing rule with our group that we only talk about ADAS once a year, and one of the things we’ve heard loud and clear over the past couple of months is that they wanted another take on scan tools,” explained Committee Co-Chair Bob Augustine (Opus IV) who led a discussion during the October CIC in Las Vegas with Co-Chair Chuck Olsen (AirPro Diagnostics), Chris Cheney (Repairify) and Donny Seyfer (National Automotive

Stay up to date with what you need to know.

BY ALANA QUARTUCCIO

Service Task Force - NASTF). Their mission was to have repairers think about what can happen if they don’t properly use these tools. Of equal importance is knowing what resources exist to help repairers in the area of scanning. Seyfer outlined the resource that lies in NASTF which sets out to “identify and resolve gaps in service information, tool information and training information. Anything that an OEM provides – or doesn’t provide or usually just doesn’t put it in the right place so we can find it – is all fair game. We help technicians by having them file a service information request, and our team goes to work with the automaker to sort that out. It’s absolutely free to join NASTF.”

“If you can’t find something about how to repair a vehicle, NASTF is the gateway to get into the OEM,” added Augustine. “So if you’re plowing through service information and you can’t find something, or you need a function, they will go to the OEM directly, and 97 percent of the time, they’re going to give us at least some answer.” Unlike the mechanical shop world, having one person devoted to diagnostics has not been a common thing on the collision shop side, but times are changing. That missing IT/technology skill set can often lead to trouble on the shop floor, according to Augustine, “It’s not just taking stuff apart and putting it back together; there’s a lot of things going on behind the scenes.” Having an IT expert on board is not just important in today’s shop environment, it’s actually necessary as most OEMs use laptop systems that are either Windows or Cloud based, and that software is updated more frequently than one might think. This has to be factored into the routine, because if a tool hasn’t been used in a couple of weeks, there may be a delay caused by getting the software updated to a current version in order to use it. Augustine explained the value of “software management skills, IT skills, security skills – I say security, not in terms of vehicle security, but security on laptops as a lot of these programs are finicky with virus programs and browsers and things like that. You have to be aware that it’s not just simply installing the software and you’re ready to go. A lot of times, you’re going to need someone who has very specific expertise.” Selecting the clear button on a scan tool to remove a code will not work and most certainly does not mean the scan tool is broken. Olsen showed an example of a low-priced scan tool one can get on eBay that “says it reads codes on all makes and models of vehicles, but like I said, clearing the code does not fix the car. So, without knowing all those other pieces of the parts that the diagnostic technician does or even if you use an OEM scan tool to check a box to read codes and clear codes, you’re not getting the efficiency and the information that scan tool could provide.” Knowing acronyms is helpful, such as in the case of Ford’s term PMI, which means programmable module installation. “If you’re not really versed in Ford lingo, you wouldn’t really know what to do with that,” Augustine pointed out, adding that this enters the area of “programming versus coding versus initialization where the lexicon becomes important. These modules have to be coded to the vehicle. You would generally use the Ford website to pull up a coding string. It’s not a big deal, but somebody absolutely has to be trained on how to do that.” It’s also important to pay attention to parts numbers. Augustine indicated that, in some cases, sensors may look the same, and if one puts the wrong sensor on the wrong side, they may wind up continued on pg. 24 February 2024

NATIONAL FEATURE continued from pg. 23

“chasing their tail for hours” as it either won’t program or calibrate, or a DTC will appear the second you take it for a test drive because something is just not right. Cheney stressed other examples of why it takes more than the actual scan tool to get the job done. Using an example of calibrating a seat occupant classification sensor, he demonstrated the role that the environment and surrounding objects can play in the procedure. “You need to make sure the vehicle is on a flat level surface. You need to make sure there’s nothing in the seat. And the most important – make sure nothing is touching the seat. “How many times have you gotten into a vehicle and there’s candy, a bottle or napkins stuck behind the console in the seat?” he continued, painting the picture with this question. “That will result in a calibration failure. Why is that an issue? Well, if the seat occupancy sensor can’t detect someone is in the seat, it’s not going to fire pretension seat belts in an accident. If there’s somebody sitting in the seat and that doesn’t go off, chances are they are going to get hurt.” Collision repairers also need to keep in mind that equipment will need to be updated over time, therefore Olsen recommends shops seek out answers with their vendors. “As you go forward in the future, just always keep an eye on your equipment so that you’re staying up to date.” H&D

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February 2024

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Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 241 years of combined service excellence This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it. Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.

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February 2024

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February 2024

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PUBLIC RELATIONS

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

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 PRESIDENT: VICE PRESIDENT: D.C., MD, VA and WV collision repair industry. It is the venue Steven Krieps Rodney Bolton to discuss, learn about and impact evolving standards and srkrieps@live.com rbolton@aacps.org 304-755-1146 443-386-0066 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 SECRETARY: TREASURER: EXECUTIVE DIRECTOR: as an active member of the association. For over 40 years, Phil Rice Kris Burton Jordan Hendler the WMABA membership of professional collision repair phil@ricewoods.com kris@Rosslynautobody.com 804-789-9649 540-846-6617 703-820-1800 jordanhendler@wmaba.com 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 PAST PRESIDENT: Tom Brown Barry Dorn bdorn@dornsbodyandpaint.com pressing topics with leaders of the collision repair industry, an Torchy Chandler thbrown@ppg.com torchy.chandler@gmail.com 804-746-3928 703-624-5819 arbitration program that works with consumers to help 410-309-2242 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.

BOARD OF DIRECTORS

Contact Executive Director Jordan Hendler to find out Tracy Dombrowkski

tracy@collisionadvice.com

571-458-0648

Bill Hawkins

hawkinswilliamjr@gmail.com

510-915-2283

John Shoemaker

john.a.shoemaker@basf.com

248-763-4375

how WMABA can amplify YOUR voice in the collision repair industry.

February 2024

COVER STORY

O T

OW OR

E G

Positioning Your Business for Success and Sale

February 2024

T U

Or do you want to walk away from the shop?

BY CHASIDY RAE SISK & ALANA QUARTUCCIO

Your business is your baby; your life likely revolves around it. Running a collision repair facility keeps owners busy, day in and day out. Some owners love what they do and are looking forward to a future filled with advancement and expansion, while others are counting the days until they wash their hands of the whole thing. But whether you’re looking to grow or get out, your path begins by positioning your business to be successful without you. For growers, it’s physically impossible to be in two places at once, so you’re going to need to empower your team to make decisions and keep things running smoothly in your absence. For the “get-outers” seeking to sell, no one wants to buy a business if the most valuable component is the current owner who certainly won’t be part of the sale. Luckily, right now is one of the best times to be in this business! Sure, there are lots of challenges, but the influx of new technology – ADAS, EVs, autonomous vehicles and so on – combined with the opportunity to differentiate your shop through OEM certification and specialization (see last month’s cover story, available at grecopublishing.com/ hammer-and-dolly-january-2024) also offers a lot of opportunity for growth and the ability to create a truly successful business…whether you’re planning to operate it for several more decades or simply positioning yourself for a stronger sale. Ultimately, no one can work forever, and even if you plan to spend many more years in your shop, most people hope to retire eventually. No matter if you plan to pass the business along to a family member, sell to a valued employee or join the consolidation bandwagon, walking away from the shop isn’t as simple as typing up a letter of resignation or relinquishing your key to the front door. It’s a process that requires forethought and preparation…or at least, it should if you want to walk away with something to show for all your hard work. “When many shop owners get out of the business, their decision is a reaction, instead of a well thought out plan,” notes Rick White (180BIZ). “They get tired of the daily grind and just don’t want to deal with it anymore. The problem is how few people consider an exit strategy ahead of that day. And when you fail to plan, you are planning to fail.” But when should you start planning your exit strategy? And what are some of the most important things to consider? Well, for starters, exiting the

business is not a process that can take years; it should take years, according to some industry experts. “It’s never too early to begin thinking about it, and, as a matter of fact, every move that a shop owner makes should have succession in mind,” suggests certified exit planner Matt DiFrancesco, whose company High Lift Financial specializes in working solely with collision repair businesses. “Shop owners need to put the vehicle in place, so when the time comes, they are able to exit on their own terms. Shop owners reach out to me at various points in their planning; some may be five years out, some need to get out now and some aren’t looking to get out but want to begin to put the plans in place.” Although the actual time frame necessary for any specific shop depends on the owner and the business itself, preparations should begin as early as possible. Maylan Newton from Educational Seminars Institute believes that one should start thinking about how they will exit their business from the very day they purchase it. He suggests a minimum of five years is needed to prepare, but he recommends, “If you bought your shop today, I’d tell you to pick a day 20 or 30 years in the future and make that the day you plan to stop owning or working on that business. “It’s never too early to plan, but in many cases, it can be too late,” adds Newton. “For most people in our industry, the exit strategy winds up being death, and they leave behind a business that has no value to their heirs because they didn’t build a business that stands on its own and is therefore sellable.” White agrees and encourages shop owners to invest a little time into their exit strategy. “The business needs to be profitable before you try to sell it, and that means being able to show four or five years of consistent profit. For a shop that isn’t profitable, it may take five years to generate a profit and another five years of maintaining it before selling is in your best interests.” Shops often neglect to develop an exit strategy – they simply decide to sell without any advance preparation, and as a result, a lot of shop owners are very disappointed to discover the true value of their business. “A lot of shops are barely making a profit; they’re not worth much more than their assets,” White laments. “Yet every owner assumes their shop is worth continued on pg. 30 February 2024

COVER STORY continued from pg. 29

$1 million…and it’s really sad when they find out what it’s actually worth.” So, how does a business owner know if they are ready to move on? DiFrancesco believes it’s important for shop owners to think about what they want life to look like after they transition away from the business. “If they don’t have a picture of what that looks like, it makes it difficult to be able to structure a plan according to what they want. The starting point comes down to figuring out if they want to fully exit or still be involved but not with the day-to-day operations as they want the flexibility to travel, play golf or go hunting. Once they know what that life looks like, we can start to build out the different ways we can structure a transition plan.” White concurs, offering a personal anecdote related to a “challenge after the sale that a lot of people don’t talk about: “After I sold my shop, I struggled to figure out who I was for a couple years. I grew up in the industry, and that’s what I was: a shop owner. But suddenly, I wasn’t a shop owner anymore! I really struggled with my identity for a while, and that’s something everyone should be aware of. When I’m working with a shop owner who intends to sell, I immediately back them off by one day, so they spend only four days per week at the shop. Then, we discuss how to fill that time with things that will get them excited about enjoying life

Why Join WIN? WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market. • Local/Regional Networking Events • Annual Education Conference • Educational Webinars • Mentoring Opportunities womensindustrynetwork.com

February 2024

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and help them see who they are beyond being a shop owner.” According to Newton, shop owners interested in getting out of the business should begin by taking a look at their shop to see what is most valuable. Is it the business itself or him or herself – the owner. If the owner is the most valuable part of the business, a lot of work will need to be done to change that so the business can be sellable. “They will need to build the business so they – the shop owner – won’t be required to be there.” “The business has to be able to operate without the owner; you cannot be a key component to the business’ success,” White stresses. “If the shop owner is also the lead technician, service advisor and HR, the business isn’t worth as much as it would be if the shop operated effectively without you sitting in the office. The owner cannot be directly tied to the day-to-day operations of the shop because that creates a situation where the value of the business is irrevocably connected to that person’s presence.” Instead, the shop’s staff has to be trained to know all the processes, policies and procedures. There should be an operations manual outlining how the business functions so it can be profitable “because people who buy businesses want the ability to profit,” Newton says, explaining if one is able to walk away from the business for 60 days and it’s still functioning, the business will survive. If not, it is not the time to sell. Branding is another value-added consideration that owners should evaluate before signing their shop over. “If your name is in the shop’s name, that may have a detrimental effect…or if you have a great reputation, you need to decide if you’re willing to leave your name on the shop when you’re no longer there,” White points out. “Their quality and customer service will be associated with you if your name remains on the building, and no one wants their name tarnished based on someone else’s actions.” Of course, profitability isn’t the only factor impacting a shop’s value. The assets being sold with the shop make a huge difference in the price tag you can place on the business. Buyers will get more use out of well-maintained (or new) tools and equipment, and they’re also going to consider the condition of the shop facilities and whether additional investments will be necessary before they begin operating. Typically, the real estate associated with the shop emerges among the most important assets to consider. “Will the purchase include real estate or not?” White questions. “If you currently rent the land your shop is on, the lease options will factor into the value someone is willing to pay. If you own the real estate, hopefully it’s been split out into a separate holding company or realty trust that rents the land to your shop because that protects you from a liability standpoint, but it also allows you to sell the business and maintain the property for additional income. “At the same time, if the business is worth $1 million, but you’re retaining the real estate, it’s going to be more difficult for the purchaser to get a loan since there’s no real collateral,” he continues. “Are you willing to hold the mortgage note? There are definitive benefits to that as well; you’ll collect more income from interest

on the loan, plus you’ll typically pay less in capital gains since the money you’re receiving is spread out over a longer period.” DiFrancesco often finds that sellers keeping the real estate as an income stream works best for all parties. “If you go to a third party, especially with consolidators, they want the owners to maintain the real estate, and that remains a cash flow stream. On insider sales, I like to see them hold on to the real estate as an income stream, but also if the owner has children who are not involved with the business, the real estate can be part of their legacy. I try to maintain that family unit, so if there is one child getting the business, the others don’t feel slighted and you can structure the real estate to be able to create a fair distribution and maintain that family harmony.” Unfortunately, shop owners often tarnish their ability to collect the highest possible amount for their business by making some common mistakes, such as neglecting to maintain confidentiality. One doesn’t want to alarm their staff by talking about their exit plans too early in the process. DiFrancesco suggests waiting until all one’s ducks are in a row so that conversations don’t begin prematurely. “You’d want to go to the successors first and then talk to your employees once the plan is determined and you know what directions things will go in.” “Hopefully you have already planted the seed for them,” advises Newton who stresses the importance of the business being able to operate without the owner present daily. “When you aren’t the main person anymore, it makes it easier on your staff to tell them you plan to retire.” Focus can also be a struggle. “Clients get really excited about the sale, but they forget to keep their eye on the ball,” White states. “The business has to continue moving forward profitability, and it doesn’t take long for things to go sideways when you’re not paying attention. You need to stay focused on your operation until the day it’s not your operation. “And you need to put your patience hat on,” he continues. “There will be struggles and delays, and you can nearly guarantee that it’s going to take longer and be more challenging than you think it should be…but don’t count your chickens before they’ve hatched! It’s common for a seller to get excited in the nth hour and buy that $300,000 motor home because they know they’ve got $1 million coming in. But then the deal falls through. It’s never a good idea to spend money before you have it.” Ultimately, it’s about being able to walk away from one’s business in the most profitable manner one can. Many may not be aware of the true value of their business, so it’s important to have an assessment done as a first step. “You should always do a valuation, and not just of the value of the business but what your free cash flow is in the business,” suggests DiFrancesco. “That’s what a consolidator or a third-party buyer will look at since they want to buy a business that’s profitable. With an inside transfer, you can utilize free cash flow to fund that transition, so getting that valuation as soon as possible is a key first step.” Newton emphasizes the role that having everything properly

documented – from wills and a trust, tax information, operation manuals, etc. – plays as it will make the business attractive and more valuable. “The more documentation you do today, the more profitable your business becomes in five, 10, 20 years.” So, what type of sale is right for you? “There are three options,” DiFrancesco indicates. “They can do an internal succession to a family member or an employee. They can do a third-party sale, whether it’s to a consolidator or a small MSO, or they can look for another third-party buyer in the market who may be looking to acquire shops. There is even what could be called a fourth option where one does an internal succession, but does not completely step away. The owner still maintains some control, but they give equity to employees so they no longer have to be involved with the day-to-day stuff. That is a lifestyle exit where they still have control over the business but no longer participate as part of the daily operation. That equity can be structured either as a stock purchase program for key employees or an ESOP (employer stock option program).” Consolidation is becoming increasingly common in some markets while seeming to skip other markets altogether. “This is the age of acquisitions with lots of major players buying businesses while many smaller independents are pulling out,” White believes. If consolidation is the route that makes most sense for your business plan, one important thing to realize is that everything is negotiable in the process, from the big stuff to the tiny details. There are many different deal structure platforms taking place when it comes to the sale of collision shops. There’s MSOs buying other MSOs, private equity deals and shop owners looking to grow their business by acquiring other shops, or those simply just entering into a succession plan. But one thing that everyone seems to agree on is that there’s no reason for shops to feel pressured to sell if they don’t want to sell. Although “the environment with consolidation is very bright,” DiFrancesco insists, “The independent shop really has a place in this environment. It may be a different place, but I think it’s a very important one.” H&D

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February 2024

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ASK MIKE: Why Do In-Person Industry Events Still Matter? This month, we “ASK MIKE” for his thoughts on the importance of attending in-person industry events and being a part of the collision industry community. 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. Hammer & Dolly: Mike, let’s talk about something you know a lot about: Traveling! Of course, you’re on the road constantly these days through your work with Collision Advice, but you also hit as many industry events as you could back when you were a shop owner. Why did you make the decision long ago to include travel as part of your professional lifestyle? Mike Anderson: I just loved it. I loved going around to shops, looking at how they did things and seeing if they had any good ideas. There was always something new to learn, and I thrived on that. It still excites the heck out of me to visit a shop to see what they’re doing and how it’s working for them. H&D: How did being actively involved in associations and peer groups benefit you as a shop owner? MA: When I had my shops, I was part of a 20 Group called the

February 2024

Coyote Vision Group. We’d meet quarterly to benchmark ourselves, do shop tours, get exposed to new ideas and have guest speakers. I loved all of that – 20 Groups really opened my eyes. I will say that being in 20 Groups isn’t always about learning something new; sometimes, it’s about validating that what you’re doing is right. H&D: You were a WMABA Board member during your time as an owner. What was the greatest value you got out of being around other shop owners in your area? MA: I realized that if I wanted something to change, it wouldn’t happen by itself – I needed to be a part of change on a greater scale. It’s not like the Lone Ranger is going to come out on a horse and say, ‘Hi Ho Silver;’ I had to be that Lone Ranger. You can sit around and complain about things, or you can get involved and make a difference. That’s what I thought I needed to do. Being connected with other shops also gives you a chance to just vent to somebody. Sometimes it almost felt like therapy! The more people you gather, the more your voice will be heard – whether by an insurance company, an OEM or a distributor. There’s a power in numbers. H&D: How would you compare the sense of community in the collision repair industry 10 or 20 years ago to how it is today? MA: Social media has changed everything. Back then, you had to go to an association meeting or an event to be tapped into how things were going. Without that in-person setting, you would never be connected. Trade publications were even more important back then because that’s how you kept informed of things that were

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WITH MIKE ANDERSON happening. Because people rely on social media so much these days, they’ve lost the benefits of personal interaction. I can watch church on TV, but that person you see on TV can’t give you a hug. That’s the power of meeting someone in person. We may not be going around giving each other hugs, but sometimes you need personal interaction. You’re not going to get that online. H&D: Unfortunately, we still hear plenty of shop owners ask, ‘What has an association done for me lately? Why should I bother being a member?’ What are some things you’ve seen the industry achieve that would not have been possible without an association? MA: The paint and material law that got passed in Virginia years ago immediately comes to mind. In the ‘Who Pays for What?’ surveys we do through Collision Advice, we look at average severity, the highest rate of reimbursement and things like that. I see a direct correlation between those things and shops being involved in the strongest associations in the country. H&D: Let’s talk about something that can be a lot of fun: Going to trade shows. You’re practically part of the scenery at most of them! Some great ones are coming up, like the Southeast

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). H&D

Collision Conference in North Carolina – which WMABA co-hosts – and the NORTHEAST® Automotive Services Show in New Jersey. A lot of shows are held either on weekends or at other convenient times for shops to attend. What’s the greatest value you received attending trade shows in the past as a shop owner, and what does still going to these events provide you today as an industry consultant? MA: It’s the networking, being able to hear about what’s coming down the pike and preparing yourself for the future. As a consultant, attending trade shows is about connecting the dots. If I’m at a show and I hear that XYZ Insurance Company is doing something in market area A, I can find out if it’s doing the same thing in market area B when I later pay that area a visit. I’m able to compare apples to apples and determine if what I heard about at the show is a trend or just the actions of a rogue appraiser in a certain market area. I can only do that by physically being in the room to hear about things going on in the industry. That’s why I think one of the greatest things any shop can do is make the time to travel and be a part of their industry community.

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