Hammer & Dolly March 2016

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www.wmaba.com

March 2016 Volume 10, No. 3 $5.95

Bad Repairs and the Law Estimating the DEG Way An Uncertain CIC

LABOR

RATES

REVEALED: WMABA’s Survey Results – Part 1 www.grecopublishing.com

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CONTENTS

March 2016

43 COVER STORY LABOR RATES REVEALED: WMABA’S SURVEY RESULTS - PART 1

The association offers the latest figures in its years-long survey process.

BY JORDAN HENDLER

LOCAL NEWS 14 WMABA-AMENDED BILLS PASS HOUSE & SENATE COMMITTEES

The association succeeds in addressing industry concerns.

DEPARTMENTS 6 10

NATIONAL NEWS 26 IMPROPER REPAIR CASE YIELDS

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$438K VERDICT

A shop is punished for unprofessional work.

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SCRS ADDRESSES ESTIMATING & SCANNING NEEDS

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The national association kicks off an active 2016.

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NATIONAL FEATURE 37 A FORUM FOR THE FUTURE?

THE CHANGING FACE OF CIC

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Has the leading industry conference lost its relevance?

BY JOEL GAUSTEN

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Calendar of Events Editor’s Message JOEL GAUSTEN

Executive Director’s Message JORDAN HENDLER WMABA Sponsorship Page Meet the Board Barbara Chase

What’s WMABA Up To? WMABA Membership Application

NORTHEAST® 2016 Preview

President’s Message MARK SCHAECH, JR. NewsFlash

Advertisers’ Index

Images © www.istockphoto.com

March 2016

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Industry training opportunities and don't-miss events.

CALENDAR OF

EVENTS CLASS LISTINGS

March 1, 2016

SECTIONING OF STEEL UNITIZED STRUCTURES Coxton’s Gold Team Collision Center, Yorktown, VA CORROSION PROTECTION

March 3, 2016

March 4, 2016

2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Craft Collision Center, Lynchburg, VA

March 7, 2016

VEHICLE TECHNOLOGY & TRENDS 2016 Rick Hendrick Chevrolet/Buick/GMC, Richmond, VA

March 8, 2016

CORROSION PROTECTION Criswell Collision Center, Annapolis, MD STEERING & SUSPENSION DAMAGE ANALYSIS Coxton’s Gold Team Collision Center, Yorktown, VA CORROSION PROTECTION State Farm - Silver Spring, Silver Spring, MD VEHICLE TECHNOLOGY & TRENDS 2016 Frederick Co. Career & Tech, Frederick, MD 2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA

March 10, 2016

ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS Coxton’s Gold Team Collision Center, Yorktown, VA ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT Automotive Collision Technologies, Randallstown, MD

March 15, 2016

AUTOMOTIVE FOAMS Canby Motors Collision Repair, Aberdeen, MD COSMETIC STRAIGHTENING STEEL Coxton’s Gold Team Collision Center, Yorktown, VA

March 17, 2016

WELDED & ADHESIVELY BONDED PANEL REPLACEMENT Frederick Co. Career & Tech, Frederick, MD ALUMINUM-INTENSIVE VEHICLE REPAIRS Coxton’s Gold Team Collision Center, Yorktown, VA HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Uni-Select USA, Baltimore, MD FULL-FRAME PARTIAL REPLACEMENT Harrison Body Works, Richmond, VA

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April 20, 2016 SCRS Repairer Roundtab le, SCRS Industry Awards & Corporate Member Reco DoubleTree by Hilton – Seat gnition tle SEA-TAC Airport, Seat tle, WA For more info, visit scrs.com

April 20-21, 2016 Collision Industry Conferen ce DoubleTree by Hilton – Seat tle SEA-TAC Airport, Seat tle, WA For more info, ciclink.com

Harrison Body Works, Richmond, VA

FULL-FRAME PARTIAL REPLACEMENT Coxton’s Gold Team Collision Center, Yorktown, VA SQUEEZE-TYPE RESISTANCE SPOT WELDING Harrison Body Works, Richmond, VA ADHESIVE BONDING Criswell Collision Center, Annapolis, MD

March 18-20, 2016 AASP/NJ’s 39th Annual NOR THEAST® 2016 Automotive Services Show Meadowlands Exposition Center, Secaucus, NJ For more info, visit aaspnjno rtheast.com (See story on page 30) April 19, 2016 SCRS Open Board Meeting & Annual Election DoubleTree by Hilton – Seat tle SEA-TAC Airport, Seat tle, WA For more info, visit scrs.com

March 21, 2016

REPLACEMENT OF STEEL UNITIZED STRUCTURES Rick Hendrick Chevrolet/Buick/GMC, Richmond, VA

March 22, 2016

MEASURING Keystone - Linthicum, Linthicum, MD WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS Harrison Body Works, Richmond, VA

March 24, 2016

OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESS Criswell Collision Center, Annapolis, MD VEHICLE TECHNOLOGY & TRENDS 2016 King Volkswagen, Gaithersburg, MD ALUMINUM-INTENSIVE VEHICLE REPAIRS Harrison Body Works, Richmond, VA

March 29, 2016

MEASURING Harrison Body Works, Richmond, VA

March 30, 2016

April 12, 2016

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Harrison Body Works, Richmond, VA

April 14, 2016

AUTOMOTIVE FOAMS Frederick Co. Career & Tech, Frederick, MD CORROSION PROTECTION Harrison Body Works, Richmond, VA

April 15, 2016

ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS Harrison Body Works, Richmond, VA

April 19, 2016

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA FULL-FRAME PARTIAL REPLACEMENT Harrison Body Works, Richmond, VA

April 21, 2016

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY Harrison Body Works, Richmond, VA

MEASURING Frederick Co. Career & Tech, Frederick, MD

AUTOMOTIVE FOAMS Criswell Collision Center, Annapolis, MD STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR Harrison Body Works, Richmond, VA

April 28, 2016

March 31, 2016

April 5, 2016

SECTIONING OF STEEL UNITIZED STRUCTURES Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA STRUCTURAL STRAIGHTENING STEEL Harrison Body Works, Richmond, VA

April 7, 2016

ADHESIVE BONDING Harrison Body Works, Richmond, VA

April 26, 2016

STATIONARY GLASS Harrison Body Works, Richmond, VA WATERBORNE PRODUCTS, SYSTEMS & APPLICATION Harrison Body Works, Richmond, VA

www.i-car.com or (800) 422-7872 for info

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Joel Gausten

EDITOR’S

(973) 600-9288 tgpjoel@verizon.net

MESSAGE SAUSAGE

It’s been said that sausage and laws are two things you never want to see being made.

While I’ve never seen the former being created, I can attest to the fact that the process for getting a bill passed can be a frightening ordeal.

I’ve been to enough hearings and have conducted enough interviews with legislators to know how tough it truly is to get from “Point A” to “Point B” with these things. Not only can it take years to get anywhere, but it’s not uncommon to see once-enthusiastic members of the industry bow out as the effort to get legislation passed drags on.

And that’s the problem. While it’s understandable that people get burned out, that’s exactly what your adversaries want to see happen.

As you’ll read on page 14, WMABA has wasted no time in diving into the legislative process in 2016. Now more than ever, WMABA needs the support of its members to ensure that the collision repair industry prospers into the future. Your involvement can be anything from making a phone call or sending a letter to traveling to a House or Senate hearing to testify on behalf of your profession. The WMABA executive team will keep you posted on what is needed and how you can assist. Until then, I WMABA OFFICERS PRESIDENT

VICE PRESIDENT TREASURER SECRETARY

IMMEDIATE PAST PRESIDENT

Mark Schaech, Jr. mark@marksbodyshop.com 410-358-5155 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928 Phil Rice phil@ricewoods.com 540-846-6617 Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061

BOARD OF DIRECTORS

Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 RT Plate (rt@pcirepair.com) 703-929-8050

Barbara Chase (barbara@siskautobody.com) 301-855-5525 Ben Gibson (bgibson@harrisonbodyworks.com) 804-355-8151

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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encourage you to keep reading Hammer & Dolly and WMABA’s regular email announcements and updates. Also, please reach out to any fellow shop owners in the area who are new to what WMABA does for the industry and encourage them to join the fight. The roadblocks to ongoing success and survival in the auto body field are considerable; the only way to combat your issues is through full-scale collaboration with others in your field. It might not be the easiest or happiest journey, but it might be the most rewarding experience you’ll ever have in this business. H&D

March 2016

STAFF

PUBLISHER DIRECTOR OF SALES EDITOR MANAGING EDITOR ART DIRECTOR OFFICE MANAGER

Thomas Greco thomas@grecopublishing.com

Alicia Figurelli alicia@grecopublishing.com

Joel Gausten tgpjoel@verizon.net

Jacquelyn Bauman jacquelyn@grecopublishing.com

Lea Velocci lea@grecopublishing.com

Donna Greco donna@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 © 2016 Thomas Greco Publishing, Inc.

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EXECUTIVE DIRECTOR’S

MESSAGE I’m Talking to YOU!

2015 SURVEY NOTES In previous years, I have reported to you what it’s like for us to call and get Labor Rate Survey information from repairers. First, we usually get the bulldog at the gate (a.k.a. the receptionist), who thinks we’re a sales call and growls just before hanging up. Second, when we get the manager or owner on the phone to give us the rate information (that should be readily available to all who would answer the phone or questions from a customer), they also meet us with skepticism. It’s with trepidation that the information is submitted, rather than eagerness.

I know you all are skeptical in nature; every good businessperson should be. But what we need are more folks paying attention to our efforts and assisting us whenever possible. Giving us information that helps improve the industry as a whole is the easiest way to help the association.

So let’s practice it:

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

Virginia, but repairers who find themselves in dispute can now invoke the insurer to physically see the car. While it was a little tumultuous in the beginning, it was quite agreeable when each side got what they wanted. It would be nice if all legislation was that way!

But it’s not. And it won’t be while we work through the legislation proposed in Maryland that would prohibit the use of non-genuine parts for the first two years. After that period, aftermarket parts used shall be certified to criteria given, or the customer would have to give written consent for use of the non-certified aftermarket part. In my opinion, this does two things: one, it protects their investment on the front end; two, if there is deviation, then the consumer must knowingly consent to it.

This will provide a greater education to customers, mostly due to the fact that when they sign a document, they normally want to know what they’re agreeing to.

Currently, the use of aftermarket parts is outlined on the end of their estimate, but who reads that?! Transparency with parts is something that this industry needs for the betterment of repair quality and processes and the image of our industry as a whole.

Keep watching for more updates via email! H&D

Ring, Ring!

“Hello, ABC Body Shop. How may I help you?...Oh, it’s WMABA? Yes, what can I do to help my industry today?”

See, it’s easy!

2016 LEGISLATION As the legislative sessions are tumbling along, we are working in both the Richmond and Annapolis State Houses this year. It was a bit of a process coming to a compromise on the physical inspection requirement changes for

Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.

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THANKS

YOU WMABA thanks their generous supporters of the

LEVEL 1

Corporate Sponsor Program for 2016!

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

LEVEL 2 3M Automotive Aftermarket Automotive Training Institute Certified Automotive Parts Association FinishMaster Mid-Atlantic Paint & Supply National Coatings and Supplies March 2016

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LOCAL

NEWS WMABA-AMENDED BILLS PASS HOUSE & SENATE COMMITTEES Legislation recently passed in the Virginia House and Senate (SB 193/HB 870) aims to change Virginia Code 38.2-510 to allow photos of collision damage to be used in the appraisal process.

Although the bills as originally written required “personal inspection,” they also proposed that an initial repair appraisal written based on the photos of the damage may also be a final appraisal: Notwithstanding the requirement that an appraisal be based upon a personal inspection, the repair facility or the insurer making the appraisal may prepare an initial, which may be the final, repair appraisal on an automobile that has been damaged as a result of a covered loss either from the representative’s personal inspection of the vehicle or from photographs, videos or electronically transmitted digital imagery of the automobile; however, no insurer may require an owner of an automobile to submit photographs, videos or electronically transmitted digital imagery as a condition of an appraisal.

WMABA succeeded in having revisions made to the legislation to require a personal inspection if a dispute arises between the shop and the insurer over a supplement: Supplemental repair estimates which become necessary after the repair work has been initiated due to discovery of additional damage to the automobile, may also be made from photographs, videos or electronically transmitted digital imagery of the

A compromise in the estimating debate moves forward.

BY JOEL GAUSTEN

automobile, provided, however that in the case of disputed repairs, a personal inspection is required.

WMABA is in support of the revised language as a means of providing greater protection to repairers and consumers.

“We wanted to make sure that we covered the bases in the event of disputes, because there isn’t always an agreement during the repair process,” offers Executive Director Jordan Hendler. “If there is not an agreement, there has to be a physical inspection.

Eyes need to be on the vehicle if there are going to be changes to procedures or dollar amounts. This also prevents desk reviews.”

Although Virginia currently prohibits appraisals by photographs, a 2015 report by the Virginia State Corporation Commission’s Bureau of Insurance noted that several insurers were engaging in these practices in violation of state law.

“This was an area of concern for [the Bureau],” Hendler says.

After hosting hearings on the legislation, the Virginia Senate Committee on Commerce and Labor and the House Committee on Commerce and Labor unanimously passed their version of the bill on February 1 and 2, respectively. The Senate passed its version of the bill on February 5, with the House following suit three days later.

In other legislative news, WMABA is currently working on a bill in Maryland that would put a two-year moratorium on the use of an alternative part in the repair of an automobile. After two years, the use of a certified aftermarket part with a permanently affixed label would be permitted.

“It specifies that there is a difference in aftermarket parts and that there is more than one tier available,” Hendler says. “If an insurer wants to use something to the contrary, they have to get written consent.”

More information on this bill, which at press time was assigned its number (HB 1258), will be featured in next month’s Hammer & Dolly. For more information (including the text of the bill), check the wmaba.com Maryland Legislative section. H&D

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e-mail: dbanks@priorityauto.com

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Ourisman Mazda of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Phone: 855-417-4511 Fax: 240-499-2488 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanmazdaofrockville.com

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Introducing the industry professionals working for you.

MEET THE

BOARD

BY JACQUELYN BAUMAN

BARBARA CHASE

"If I can help in any way to [pass legislation] and create an actual change, that would be incredible."

- Barbara Chase

“Never stop learning,” says Barbara Chase of Sisk Auto Body in Owings, MD. “But most importantly, you have to remember what you learned and apply it to the next day.”

Chase’s words of advice are not just spoken — they’re lived. Having started at the shop at 15, she has earned tenure in almost every role involved with owning a collision repair shop. Starting out as a detailer, she has held the title of bookkeeper, bill payer, front office representative, painter and even worked in the parts department for a short time. In a span of 20 years, Chase has certainly earned her right to run the shop founded by her father, Doug Sisk, in 1981.

In her day-to-day operations, Chase works with a close-knit team of 11 employees, including her sister (and right hand) Muffy Revell, in a threebuilding, 24-bay shop.

“It’s kind of like a family here,” she notes of the atmosphere between her coworkers. “There’s a good, light-hearted picking on each other, like siblings. We just had an awesome Christmas party recently. It’s a great group.”

This is especially important for Chase, who cited finding good employees as one of the biggest challenges in the automotive repair field.

“We had a significant issue with finding good employees in the past,” she recalls. “Thankfully, we’ve conquered that at this point. Of course, the other obstacle that’s still in our way is the threats and acts of steering. We could easily be twice the size we are now if it wasn’t for that interference in our daily business. Unfortunately, it’s a struggle to even get paid fairly for the work that we do.”

It’s for these reasons and more that Chase recently took a major step in working towards

improving her industry. Although Sisk Auto Body has been a member of WMABA for longer than she can remember, it was only recently that Chase joined the Board of Directors.

“I would love to be able to pass the legislation that WMABA is constantly working on,” she explains. “If I can help in any way to do that and create an actual change, that would be incredible. Being involved in the association puts things into perspective; you see that everyone is having the same struggles. You can learn things and find solutions just by talking to people; you see how they’re doing things better than you are, and you find ways to change. Plus, if we all get together, things could actually change. If we’re at each other’s throats all the time, there’s no way we can make any progress.”

As for what Chase currently sees on the horizon for the profession, the ominous shadow of consolidation seems to cover her projections.

“In our area specifically, it seems like there’s going to be a lot more consolidators in the near future,” she predicts. “It’s scary because if you’re not performing at 100 percent, you might be out of the picture. Going up against those businesses is like David and Goliath.”

Regardless of what the future might hold, Chase is thankful for the situation she has in front of her now. Between her parents Terri and Doug (who gave her the opportunity at the shop), WMABA Executive Director Jordan Hendler (for seeing potential in her and bringing her to the Board), her husband Sam and daughters Claire (7) and Daisy (4) and her employees, Chase feels blessed for all that she has. H&D

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WHAT’S

The Playbook

UP TO? WMABA MEMBERSHIP: THE UN-SECRET PLAYBOOK

It’s always a good time to get involved in WMABA. If you’re reading this, your first benefit is already being realized: Staying up to date on the news in our area and beyond.

Get Your Team Jersey

Supporting WMABA is an investment in the future of your business and your industry. By becoming a member, you are represented in all the places the Board or executive director go. Whether at a trade show like SEMA, assisting with the SCRS OEM Technology Summit regarding certified repairs or locally at the state capitol meeting legislators or testifying at a hearing, your interests and the interests of all repairers are at the forefront. Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team.

Get Educated

WMABA offers issue-specific, topic-driven education throughout the year. Participation in special events and local meetings, such as the Audi Training Center-hosted seminar and tour, offers your business the best in opportunities to advance your understanding of changes within our industry.

MEMBER TESTIMONIALS

The two obvious benefits of belonging to WMABA are: 1) Keeping up to date on industry events, challenges and technical changes, and 2) Networking with industry shop owners and vendors. The not-so-obvious benefit is that we as shop owners can unify to make a change. Being a member assures each of us that we are not ‘the only one’ dealing with these issues. WMABA is the only association focused on making this industry better for the collision shop owners and technicians. No other organization can make that claim. Most of them just follow the money. Put your money where it counts – join WMABA! - Bill Denny, Bill Denny’s Automotive, Inc., Havre de Grace, MD

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Find more association updates at www.wmaba.com.

The association is your resource for all things related to your business. Whether you have a question about current Labor Rate data, operations, customer interaction, insurer relationships, vendor products or national news, your association is the place to ask first.

Through our relationships nationally, we can even take issues to the forefront of places such as the Society of Collision Repair Specialists, Collision Industry Conference or national contacts for insurers and vendors.

Locally, we research governmental regulations and oversight to make sure the repair industry is protected from any negative legislation. Represented in both Virginia and Maryland, WMABA proposes and opposes recommended bills that come into the legislature during open session. Also, we work with consumer-related entities, government agencies and other related industry organizations to ensure that the voices of the repairer and their customer are heard.

Many repairers take advantage of the knowledge and community the association has for navigating situations that arise. A simple phone call or email can circumvent many issues our members encounter.

Call the Game

As a member, you decide your personal level of participation. Do you have interest in committees that address particular issues you feel passionately about? Would you want to be a Board member and assist in guiding the direction of the association? How about sitting on the sidelines so you can focus on your own business? All answers can be correct! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved.

The minimum is getting your membership. This year can WIN with your commitment to the betterment of your business and your industry. Sign up today! H&D

WMABA keeps us in touch with what is happening in our industry, from class action lawsuits to pending legislation in our state and the whole country. Our membership helps us remember that we are not the only ones facing the discouraging burdens and issues out there. It reminds us that if we all stick together, we can make a change for the better.

Their coverage of PartsTrader, well before it hit home, was invaluable. They even went to the State and tried to make it unlawful for insurance companies to require it. They are working hard for us on things that all body shop owners care deeply about, but don’t have the time to stand up and fight.

- Barbara Chase, Sisk Auto Body, Owings, MD

I joined WMABA the very first year I opened my shop. I was immediately embraced by both colleagues and mentors who provided me the fellowship to know I wasn't the only one facing the challenges before me, advice that provided clarity and confidence to make the decisions that would guide my business and a network that I could call on repeatedly over the years I have been a member. WMABA's ability to educate the collision repair industry, speak on its behalf and lobby for issues that affect it has been - and is to this day - the greatest value I have received from any association of which I have been a member.

- Mark Boudreau, Spectrum Collision Center, Arlington, VA

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Unsurpassed Quality.

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HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE.

SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS.

TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR THE WHOLESALE PARTS SPECIALIST AT THESE FINE DEALERS. Buy Hyundai Parts.

For Genuine Hyundai parts, contact these Authorized Hyundai Dealers.

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Woodbridge, VA 22191 Parts Direct: 703-490-8263 Fax: 703-490-3864 E-mail: hmkparts@aol.com

Bob Bell Hyundai 7125 Ritchie Highway Glen Burnie, MD 20161 Phone: 410-689-3038 Fax: 410-766-1275 www.bobbell.com

Fitzgerald Lakeforest Hyundai 905 North Frederick Ave. Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595

Checkered Flag Hyundai 3033 Virginia Beach Blvd.

Virginia Beach, VA 23452 Phone: 757-687-3463 Fax: 757-687-3468 www.checkeredflag.com

Antwerpen Hyundai 12431 Auto Drive Clarksville, MD 21029 Parts Direct: 443-367-4145 Fax: 443-367-4125 E-mail: bgonce@antwerpenauto.com www.jacksaysyes.com

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A betrayed customer wins in court.

NATIONAL

BY JOEL GAUSTEN

NEWS

Improper Repair Case Yields $438K Verdict

K&M Collision's online video (tinyurl.com/zum9a4o) illustrates some of the issues in the case.

In one of the highest-profile arguments yet for the importance of following OEM procedures, Rick Hendrick City Chevrolet in Charlotte, NC has been ordered to pay $438,263.66 in treble damages, attorney fees and interest for the improper repair of a motor vehicle. In addition to finding that City Chevrolet misrepresented to Plaintiff Benjamin Ridley that his Land Rover LR3 was fixed when they knew (or should have known) it was not completely or properly repaired, the jury unanimously determined that Ridley was damaged by this fraud.

The post-repair inspection that ultimately led to the December 28 verdict is explored at length in a seven-minute video (available online at tinyurl.com/zum9a4o) produced by K&M Collision of Hickory, NC. “One of the biggest concerns [Ridley] had is that if he held his steering wheel straight, the vehicle didn’t go down the road straight,” explains Michael Bradshaw, K&M Collision operations manager, at the start of the video.

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Once the Land Rover was at the shop, Bradshaw uncovered “major issues” with the previous facility’s work. Although Ridley says he was given assurances that his vehicle did not sustain frame damage in the collision, the video reveals tears and re-weld attempts. It is clear by the evidence that his Land Rover should have been deemed a total loss.

“The front structure of the vehicle had shifted pretty significantly to the right,” noted Bradshaw, who also serves on the Board of the Society of Collision Repair Specialists (SCRS). “When you’ve got a structure that is not aligned properly or bent, everything changes. The way it crushes in an accident changes, which sets off a chain reaction of events that ultimately affect how the airbags may or may not deploy. You could have a situation where the airbags deploy too soon; you [could] have a situation where the airbags may deploy too late. The vehicle’s no longer within the manufacturer’s guidelines of what’s acceptable, so no one knows how it’s going to perform in an accident.”

Pleased to see Bradshaw’s efforts gaining attention in and out of industry press, SCRS Executive Director Aaron Schulenburg views the incident as an example of the growing need for repairers to better understand and embrace the professional demands around them.

“As vehicle technology advances, postrepair inspections will become more and more prevalent,” he says. “As an industry, we have to do a better job of making sure that we are returning the vehicle to the functionality that the consumer had prior to the loss.

Following the OEM-recommended repair procedures is one way to do that, and following the technologies that are available to us that allow us to confirm whether or not we’ve done that is also important. I think you’re going to see a continued growth of the postrepair inspection market because there is a need for it. Unfortunately, I think there are too many examples – regardless of the reason – of repairs not being properly completed. As an industry, we really need to look at the conditions that cause that, and how to tackle them. We need to look at this at a systematic level, and look at why these shortcomings are happening. One condition is the dismissal of OEM repair information in lieu of what’s acceptable in the marketplace.”

Ultimately, Ridley’s case proves that not all shops in this industry are created equal.

As Bradshaw says in the video, “I think all consumers should have every vehicle post-repair inspected after any type of major repairs.” H&D

Executive Director’s Thoughts

Consumers of our industry are generally uneducated, and I believe this is why we end up negotiating with the insurer. When you find a consumer who learns the hard way or when his or her vehicle has been repaired poorly, it gives the reminder that the person who owns the vehicle – and his or her personal safety – should have priority over anyone else.

- Jordan Hendler

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Northwest BMW 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 www.northwestbmw.com

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BMW of Catonsville 6700 Baltimore National Pike Baltimore, MD 21228 855-996-2906 410-744-2000 Fax: 410-818-2600 www.bmwofcatonsville.com

March 2016

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NORTHEAST® 2016

PREVIEW

The New Jersey show brings exciting vendors to its halls.

BY JACQUELYN BAUMAN

WMABA-AREA BUSINESSES

TO HIT NORTHEAST 2016 You’re not too far to take a drive and join us!

Many industry professionals agree that the way to stay ahead as a collision repairer is to keep a close eye on the news and products coming into the market. Yet an oversaturation of information tends to clog up a shop owner’s efforts to learn; frequently, the first time an owner finds out about an industry change is when it’s already in one of his or her bays or at a competitor’s business.

While “consolidation” in reference to collision repair facilities can sometimes seem like an industry taboo, bringing the top educators, auto body professionals, manufacturers and suppliers in the Northeast market together in one educational and networking setting is a benefit to all involved.

On March 18-20, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) will host its 39th Annual NORTHEAST Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ. Just a five-hour drive away, this event will play host to seminars by industry giants like former WMABA Board member Mike Anderson (Collision Advice), Hammer & Dolly Technical Writer Larry Montanez (P&L Consultants), Reliable Automotive Equipment’s Dave Gruskos and many more. The show will also attract some of the country’s top OEMs and tooling and equipment dealers.

With this year’s installment just weeks away, a number of businesses from the WMABA region are ready to strut their stuff at NORTHEAST. Among these businesses is industry staple Nucar Wholesale Parts of Newcastle, DE. “Being at the show allows us to get to meet some of our customers face-to-face when we wouldn't have seen them in another case,” says Nucar Wholesale Parts Manager Nick Halliday. “That personal connection helps to build trust. When you can see someone’s body language and put a face to the voice over the phone, you can see that we’re genuine.”

Excited by what 2016 has in store for his company, Halliday notes that the show’s incredible growth in the past few years has meant a lot to exhibitors and attendees.

“In the past, we’ve worked to help out with the show by offering classes or seminars as a draw for attendees,” he says. “This year, we only have a booth because there’s so many great things going on. The groups in New Jersey have such a great connection to the industry and they help with a lot of the matters that go on in the automotive repair

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field. Being a part of that and being there, you get in touch with the top information so you’re aware of what’s coming down the pipeline.”

Teresa Bolton, director of collision repair test development for ASE in Leesburg, VA, is another local face who will be found inside the walls of the Meadowlands Exposition Center this March.

“NORTHEAST has gotten to be a really popular show,” she expresses. “I’ve attended for the past few years pretty consistently, and it’s always great. I get to interact with the technicians and network with the businesses that are exhibiting; it’s an invaluable experience.”

Having just recently released its “Light Duty Hybrid/Electric Vehicle Specialist (L3) Test” as well as a number of new practice tests, ASE views NORTHEAST as the perfect place to distribute the information about its offerings in addition to receiving vital input regarding its own future improvement.

“We are always looking for technician feedback,” Bolton says.

“And when I interact with the technicians, the wonderful thing is that I really get to know them; later on, they often participate in our ASE ‘Question-Writing’ Workshops, which help us write the best evaluations possible for the betterment of the industry.”

Above all, Bolton stresses that the trip to NORTHEAST from Maryland or Virginia is a worthwhile investment of time for anyone reading this.

“I don’t think it’s that far away,” she states. “I live in Maryland and I work in Virginia. The drive isn’t bad. NORTHEAST is a fantastic place to come up and talk to people, interact with them and get their insights on our tests and the industry overall. I always get a lot of information in just the short three days when the show takes place.”

WMABA Executive Director Jordan Hendler shares Bolton’s point of view.

“NORTHEAST is the best regional show in the entire country,” she expresses. “You have every reason – education, equipment and more – to come up to New Jersey and have a great time!”

With the event show floor sold out in record time this year, NORTHEAST has more to offer than ever before. Free registration for the show is now open at tinyurl.com/NE16reg. For those attending the show, don’t forget to stop by ASE’s and Nucar’s booths – #500 and #406, respectively.

For more information about the show, please visit aaspnjnorth east.com. H&D

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AASP/NJ’s

Networking.

Education.

Innovation.

Technology.

IT’S ALL HERE. March 18 - 20, 2016 | Meadowlands Exposition Center | Secaucus, NJ Online FREE Registration is NOW OPEN!

www.aaspnjnortheast.com March 2016

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NATIONAL NEWS SCRS ADDRESSES ESTIMATING & SCANNING NEEDS As those who traveled to the Society of Collision Repair Specialists’ Open Meeting on January 13 in Palm Springs, CA learned firsthand, the national association is stepping up its efforts to provide valuable information to the industry it serves.

During his address to attendees, SCRS Executive Director Aaron Schulenburg noted that the group continues to receive valuable feedback from the industry members who attended the 2015 SEMA Show in Las Vegas in November. A notable amount of these comments are in response to the topics raised during the “Tech Crunch – The Role of Programing & Diagnostics in Post-Repair Roadworthiness” panel discussion hosted by Assured Performance’s Aaron Clark during the 2015 OEM Collision Repair Technology Summit (“OEM Summit Tackles Technology Trends, Proper Repairs,” H&D, December 2015). As 2016 moves on, SCRS will continue to bring awareness to the industry of the need for pre- and post-repair scanning and look at ways to better standardize how - Aaron repairers approach the issue.

“To us, the scan element of defining and establishing that you’ve returned the functionality to the vehicle is a really big topic that hasn’t received a whole lot of attention in the industry,” Schulenburg told Hammer & Dolly following the Open Meeting. “There are so many functions in the vehicle today that didn’t exist before. Even the most minor of operations – from removing and reinstalling the wheel to removing and reinstalling the grille – can have a big impact on the functionality of the vehicle. It’s obviously our job to restore that vehicle, so this topic is going to be a big focus for us moving forward.”

Not surprisingly, Schulenburg adds that the Summit remains one of the best-received events at SEMA.

“The OEM Collision Repair Technology Summit is all about having new exposure to bigger ideas relative to technology, structural development and things along those lines,” he says. “We learned a lot as far as what the average shop is going to have to look at for future development and to make sure they are maintaining pace with the market and these vehicles. Right now, the industry has a vision of the ‘typical’ vehicle versus the ‘advanced’ vehicle that isn’t going to be all that realistic in the future. I think more and more of your average vehicles are becoming advanced with very specific requirements. That’s really going to change things in the industry and elevate what shops that want to work on current vehicles need to do to be prepared.”

Of course, professional collision experts must be able to receive proper compensation for this highly skilled work, and that’s where writing the best possible estimate comes in. Since last summer, SCRS has been issuing Schulenburg special estimating tips from the Database Enhancement Gateway (DEG) to its members via email every Monday as a way to help repairers develop more accurate ROs. As an example of the information in these emails, here is the DEG estimating tip from January 25:

“Obviously, anything that keeps the DEG in front of the industry is good, in our opinion.”

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CCC Bumper Prompt Indicator — If the symbol <> is next to a bumper line on your estimate, this indicates the bumper refinish operation WILL NOT be performed as a separate procedure from the other panels in the estimate. Meaning, the user selected NO when asked if the bumper will be refinished in a separate procedure from the other panels. This symbol will only show on the printed copy of the estimate and selecting yes or no to the bumper prompt will impact how the estimate calculates overlap.

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The DEG highlights SCRS’ Palm Springs meeting.

BY JOEL GAUSTEN

The estimating tips are also available on the DEG website at degweb.org. As could be expected, Schulenburg notes that SCRS’ weekly emails have led to a considerable increase in DEG users.

“Obviously, anything that keeps the DEG in front of the industry is good, in our opinion,” he says. “The DEG is a free Web service intended to help estimating system end-users address errors, inaccuracies or omissions in the estimating data. It’s free because organizations like ours and AASP and other entities provide funding to make it available to the industry.

“I don’t think there is a collision business operating in the US today that couldn’t take advantage of that resource and use it to make their estimates better and help positively impact the industry overall,” he adds. “The estimating tips have done a lot to draw attention to individual things within the databases that people may not always be aware of or that may get missed in the day-to-day process of running a business.”

For regular information on SCRS activities and events, please visit scrs.com. H&D

March 2016

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NATIONAL FEATURE

Participants express their concerns and hopes.

BY JOEL GAUSTEN

A FORUM FOR THE FUTURE? THE CHANGING FACE OF CIC The national collision repair industry is in a state of constant change, but can the Collision Industry Conference (CIC) evolve fast enough to address the needs of its participants? This month, Hammer & Dolly looks at some of the issues that have the long-running event looking for solutions.

March 2016

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Out“Classed?”

For decades, CIC has promoted the industry-wide use and acceptance of its “Minimum Recommended Requirements for a Class A Collision Repair Facility” (available online at tinyurl.com/o5xhepg). In recent years, the CIC Definitions Committee has been working on an updated draft of the document. The new incarnation would divide the Forum’s “Class A” definition into three categories:

Non-Structural/Cosmetic: Capable and equipped to perform refinishing and light metal repairs not requiring pulling or welding on structural components of the vehicle Structural: Capable and equipped to perform repairs and refinish work on steel vehicles including structural repairs and welding on replacement structural components Structural Advanced Materials and Techniques: Capable and equipped to perform repairs and refinish work on steel and advanced-material vehicles such as aluminum, carbon fiber, etc., including structural repairs and replacing structural components

Despite the Committee’s ongoing work, a growing call to eliminate CIC’s role in the “Class A” discussion can be heard throughout the industry. Addressing the Committee from the audience during the forum’s meeting in Las Vegas last November, Texas-based repair professional Dustin Womble challenged the notion that CIC was the setting for such a discussion to take place.

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“The ‘Class A’ definition came out almost 20 years ago,” he said. “We had vehicles on the road that [were] different than the vehicles that we have on the road today. It was an attempt to give a little bit of a heads up to part of our industry on [the shops] they should be looking for as their Direct Repair Programs evolved. Now, Direct Repair Programs have evolved many times over; cars have changed many times over...The real-word situation is that this ‘Class A’ definition is irrelevant in today’s market.”

At a time when more and more OEMs are pushing their own certification programs – coupled with CIC’s inability to police and enforce its recommendations to the industry – longtime CIC participant and WMABA Executive Director Jordan Hendler notes that Womble is not alone in his misgivings. During an extensive debate on “Class A” during CIC’s January 14 meeting in Palm Springs, CA, she revealed that the forum’s recent survey of more than 1,700 industry members not only yielded an embarrassing 25 responses on the subject, but 12 of those respondents said that the forum is not the appropriate vehicle to establish what a “Class A” shop should or shouldn’t be.

“That’s telling to me,” she said.

Following the meeting, Hendler shared more of her thoughts with Hammer & Dolly.

“If CIC were to develop a ‘Class A’ definition or a definition of minimum standards for a repair facility, then that should be done by the shops,” she offered. “I feel like this would be more of a function best done by a body like the Society of Collision Repair Specialists [SCRS].

I don’t think that special interests or other segments of this industry could do this justice if they’re not going to rely most heavily on the shops’ opinion of what a shop is.

“We have the highest caliber of shops in the entire country in the room at CIC,” she

added. “No offense to anybody up there [on stage during the discussion], but I didn’t hear any one of those shops say, ‘I don’t want this.’ I know from the survey results that they don’t. If shops of that caliber don’t want this, then why are we doing it?”

With some in this industry openly questioning whether CIC is the correct venue for a “Class A” discussion, SCRS Executive Director Aaron Schulenburg shares his mixed feelings on the matter.

“Is CIC the place to have the discussion?

Absolutely!” he says. “CIC is a discussion forum; that’s really what it was created to be.

As far as CIC being the place to establish what the ‘Class A’ is, I think that’s where it becomes a bit more challenging. When ‘Class A’ was first established and developed at CIC, you didn’t have as many commercial differentiators available to shops. There were OEM certification programs, but they certainly weren’t as pervasive as they are today. You didn’t have programs like Assured Performance or VeriFacts or the new NSF program. There are multiple entities providing those differentiators that establish what a shop has, what they’re capable of and what they’ve been trained in. They all do it a little bit differently, and I think it’s up to the shops in the market to determine which ones are best for them. I think it diminishes, to some degree, the need for CIC to go through that process.”

Getting New Opinions

The “Class A” situation isn’t the only issue facing CIC. During his January presentation in Palm Springs, Marketing Committee member Chris Brandl (Questback) noted that while the quarterly event has traditionally been a successful networking setting, there exists a growing need for new industry members to attend the meetings and offer fresh perspectives.

“Without the audience changing, we’re making the same deals with the same people,” he said.

Hendler believes that in order to attract new participation, CIC has been actively avoiding a “potentially adversarial debate” by limiting the ability for audience members to bring opposing parties to the mat. When considering the rise of CIC’s automated audience response system in recent years and a noticeable decrease in the time available for Open Mic sessions (which didn’t even occur at the January meeting), it’s hard to argue with her position.

“I like what CIC was, which was an open

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debate,” she says. “But I recognize that the open debate can be contrary to having everybody in the room. I like this ‘let’s stay professional’ approach, but I think they still need to incorporate the forum that people are there for. When you take away Open Mic, you really take away the possibility for audience and committee engagement over issues. I hope that they do swing back towards having not only the informative presentations, but more opportunities for audience issues to be addressed.”

In Schulenburg’s mind, one way CIC could elevate industry participation is by making an effort to return to its roots.

“I think back to my early days of going to CIC, when I first fell in love with that aspect of the industry and it was all issue-driven and passionate,” he shares. “The CIC body has worked on tempering the conversation in order to draw in more individuals from other aspects [of the industry]. By doing that, we’ve gotten away from some of the things that really matter to collision repairers. I don’t believe there are as many collision repairers in the room today as there once were. Part of that is because we’ve gotten away from the healthy debate surrounding the issues that cause the most tension at the shop level. I think we’re missing that back-and-forth. I would love to see us get back into that, roll up our sleeves and have the

Top to Bottom: WMABA's Jordan Hendler revealed a stunningly low response to CIC's recent “Class A” survey; Marketing Committee member Chris Brandl stressed the importance of encouraging new participants to get involved; CIC Chairman Randy Stabler warned that consolidation will continue to have a major impact on the independent industry.

March 2016

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NATIONAL FEATURE

hard conversations and not avoid them for the sake of having something that all parties can come to an agreement on.”

After nearly 35 years attending the forum, CIC Administrator Jeff Hendler shares Schulenburg’s concerns. Speaking from the floor at the most recent meeting, he stressed the importance of keeping CIC a place for genuine inter-industry dialogue.

“I don’t come here to hear speakers; there are 1,000 conferences in the world I can go to [and] hear speakers,” he said.

“If you want to drive people through that door, we’ve got to get back to talking about the issues that create friction among [the participants] that are here.

Years ago, it wasn’t always politically correct, but I need to tell LKQ what’s on my mind, and need to tell State Farm and Enterprise what’s on my mind. I need to tell you what really causes cycle time crashes; I need to be able to talk to those issues. This group was created for that.”

As CIC participants continue to grapple with the event’s influence in addressing minimum requirements for professional body shops, current CIC Chairman Randy Stabler cautions that the industry could find itself facing an even greater issue in the not-too-distant future. In his opening address at the January CIC, he noted “the widening disparity between the individual shop owner” and the “new competitor” coming in the form of ongoing consolidation.

“That chasm [in this industry] is growing, and we’re not doing anything about it,” he said.

Will CIC serve as the entity to address the consolidation debacle, or will the multiple interests that comprise its current structure prevent it from truly acknowledging either side of the trend?

Before addressing that one, CIC must first come to a decision on where to go with “Class A.” As announced in January, the CIC body will be asked to vote during the April meeting in Seattle on whether the forum should carry on in this arena or abandon it completely. What happens in that meeting room will determine how many perceive CIC’s presence in the industry now and in the future. H&D

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COVER STORY

WMABA provides real numbers and real answers.

BY JORDAN HENDLER

LABOR RATES REVEALED: WMABA’s Survey Results – Part 1 Do you know how YOUR LABOR RATES COMPARE

to other shops in the marketplace? If not, read on.

WHAT IS YOUR RETAIL HOURLY BODY LABOR RATE?

SURVEYS TELL IT LIKE IT IS! You can come to one

conclusion really simply: that overall rates in the Virginia, Maryland and DC area in the past four years have remained the same. I know that will not shock anyone reading this, but it goes to show the industry is suppressed and depressed while costs for every part of the business are going up every year. WMABA uses this valuable information to discuss our situation with government entities that review issues like this. Some way, sometime there needs to be a way we can get positive change for growth in this area.

At the end of January, WMABA concluded its most recent Labor Rate Survey. Again split between this issue and next, the results offer intriguing insight into the rates, trends and procedural practices that define the Washington Metropolitan collision repair industry. Like previous installments, the results of this most recent Survey are reflected in eight different regions: Baltimore area, Annapolis area, Hagerstown area, Washington, DC area, Virginia Beach area, Charlottesville area, Richmond area and Roanoke area. There is a customary +/-5% accuracy for the results. This month’s Hammer & Dolly offers results to the following Survey questions:

WHAT IS YOUR RETAIL HOURLY FRAME/ STRUCTURAL LABOR RATE? WHAT IS YOUR RETAIL HOURLY PAINT/ REFINISH LABOR RATE? WHAT IS YOUR RETAIL HOURLY PAINT MATERIAL RATE?

DO YOU USE A PAINT & MATERIAL CALCULATOR SUCH AS PMC LOGIC, MITCHELL RMC OR PAINT LOGIC? (YES/NO) WHAT IS YOUR RETAIL HOURLY MECHANICAL LABOR RATE? DO YOU HAVE A CERTIFIED ALUMINUM STRUCTURAL REPAIR AREA? (YES/NO)

WHAT IS YOUR DAILY STORAGE RATE? (INSIDE & OUTSIDE)

WHAT IS THE TOTAL NUMBER OF TECHNICIANS EMPLOYED (BODY, PAINT AND MECHANICAL)?

WHAT IS THE SQUARE FOOTAGE OF YOUR COLLISION FACILITY?

The results offer intriguing insight into the rates, trends and procedural practices that define the Washington Metropolitan collision repair industry.

WHAT IS THE TOTAL NUMBER OF ESTIMATORS EMPLOYED? WHAT IS THE TOTAL NUMBER OF OFFICE STAFF EMPLOYED? March 2016

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REGION 1 BALTIMORE AREA

BALTIMORE COUNTY, MD CARROLL COUNTY, MD CECIL COUNTY, MD HOWARD COUNTY, MD THE CITY OF BALTIMORE, MD

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015

$42 - 52 $48 - 75 $42 - 52 $26 - 34 $85 - 135 $35 - 125 $25 - 75

2,000 - 60,000 2 - 32 1-5 0-4

2014

$42 - 52 $42 - 68 $28 - 50 $26 - 36 $76 - 120 $25 - 120 $25 - 55

2013

$40 - 48 $45 - 85 $40 - 48 $25 - 32 $75 - 129 $25 - 80 $25 - 55

1,500 - 68,000 1 - 28 2 - 18 1-6 1 - 11

2012

$40 - 75 $40 - 88 $26 - 60 $20 - 42 $65 - 129 $25 - 150 $15 - 75 1 - 15

2015 Ratio of office staff to technicians 4 to 7

Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

2015

HARFORD COUNTY, MD

$45.70 $54.89 $45.70 $30.11 $105.92 $62.26 $45.56

Square Feet # of Techs # of Estimators # of Office Staff

11,328 7.24 2.00 2.09

Paint Calc.

2015 24.00%

2014

2013

$44.07 $52.93 $43.95 $29.11 $96.96 $56.70 $39.75

2012

$43.07 $52.05 $43.13 $27.65 $94.95 $46.75 $36.86

12,730 6.76 2.06 2.21

12,381.13 7.10

% “YES” to Yes/No Question 2014 10.53%

2013 12.70%

$43.64 $51.04 $42.42 $27.26 $90.30 $46.04 $36.07

Change (from 2014)

11,670.44 5.75

3.70% 3.70% 3.98% 3.44% 9.24% 9.81% 14.62%

-11.02% 7.10% -2.91% -5.43%

2012 16.00%

The overall percentage of those surveyed who have an operating dedicated structural aluminum repair area is 15.8% REGION 2 ANNAPOLIS AREA

ANNE ARUNDEL COUNTY, MD CALVERT COUNTY, MD CAROLINE COUNTY, MD MD KENT COUNTY, MD QUEEN ANNE’S COUNTY, MD TALBOT COUNTY, MD

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff

2015 $42 - 50 $45 - 80 $42 - 50 $28 - 32 $70 - 130 $30 - 100 $30 - 55

2,800 - 44,000 2 - 17 1-4 1-7

2014 $42 - 48 $48 - 68 $42 - 48 $26 - 32 $70 - 130 $35 - 75 $35 - 55

2013 $40 - 48 $45 - 65 $40 - 48 $24 - 34 $65 - 115 $25 - 70 $20 - 55

1,800 - 44,000 3 - 31 3 - 17 1-6 1 - 10

2012 $40 - 52 $42 - 85 $40 - 52 $16 - 32 $50 - 140 $25 - 100 $20 - 60 1 - 25

2015 Ratio of office staff to technicians 4 to 7

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Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015 $45.37 $53.84 $45.58 $29.37 $98.00 $61.25 $43.37

12,948 7.53 2.00 2.24

2014 $44.94 $53.94 $43.88 $29.53 $97.12 $49.69 $41.18

14,358 7.38 2.19 2.27

DORCHESTER COUNTY, 2013 $43.80 $49.62 $43.80 $27.45 $92.36 $45.69 $36.83

2012 $43.51 $51.41 $43.44 $27.11 $91.33 $44.86 $35.13

12,843.18 16,701.43 -9.82% 7.70 7.31 2.10% -8.68% -1.32%

% “YES” to Yes/No Question

Paint Calc.

2015 2014 21.00% 11.76%

Change 0.96% -0.19% 3.87% -0.54% 0.91% 23.26% 5.32%

2013 29.20%

2012 15.40%

(from 2014)

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REGION 4 WASHINGTON, DC AREA

REGION 3 HAGERSTOWN AREA

ALLEGANY COUNTY, MD CLARKE COUNTY, VA FREDERICK COUNTY, MD FREDERICK COUNTY, VA GARRETT COUNTY, MD LOUDOUN COUNTY, VA WARREN COUNTY, VA WASHINGTON COUNTY, MD

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015 $42 - 48 $46 - 65 $42 - 48 $28 - 42 $65 - 109 $25 - 80 $25 - 75

3,000 - 25,000 4 - 16 1-5 0-5

2015

$44.96 $54.43 $44.96 $31.09 $86.30 $55.79 $44.83

9,966 8.57 2.30 2.29

2014

2014 $42 - 65 $48 - 80 $42 - 65 $28 - 48 $60 - 100 $25 - 75 $12 - 50

2013 $40 - 50 $45 - 110 $28 - 50 $20 - 44 $55 - 105 $20 - 80 $20 - 65

1,200 - 30,000 2 - 17 1-15 1-4 1 - 10

$45.26 $57.91 $45.26 $30.78 $83.13 $51.89 $38.86

11,197.55 6.61 1.96 1.67

2013

$43.70 $55.19 $43.04 $29.00 $86.06 $54.26 $45.19

2012 $40 - 52 $44 - 99 $28 - 52 $24 - 44 $44 - 105 $20 - 85 $20 - 65

1 - 20 2012

$43.59 $55.27 $42.92 $29.08 $81.57 $49.43 $39.86

12,692.67 15,570.00 7.60 8.16

Change (from 2014)

-0.66% -6.01% -0.66% 1.01% 3.81% 7.52% 15.36%

-11.00% 29.65% 17.35% 37.13%

2015 Ratio of office staff to technicians 1 to 2 % “YES” to Yes/No Question Paint Calc.

2015 9.00%

2014 21.74%

2013 11.10%

2012 22.90%

ALEXANDRIA CITY, VA ARLINGTON, VA CHARLES COUNTY, MD CULPEPER COUNTY, VA FAIRFAX COUNTY, VA FAUQUIER COUNTY, VA FREDERICKSBURG CITY, VA KING GEORGE COUNTY, VA MONTGOMERY COUNTY, MD PRINCE GEORGE’S COUNTY, MD PRINCE WILLIAM COUNTY, VA RAPPAHANNOCK, VA SPOTSYLVANIA COUNTY, VA STAFFORD COUNTY, VA ST. MARY’S COUNTY, MD THE CITY OF WASHINGTON, DC WESTMORELAND COUNTY, VA

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

2015 $40 - 98 $45 - 110 $40 - 98 $27 - 50 $68 - 174 $25 - 150 $25 - 95

2014 $42 - 50 $42 - 88 $30 - 50 $26 - 35 $65 - 132 $35 - 125 $20 - 85

Square Feet # of Techs # of Estimators # of Office Staff

1,500 - 60,000 1 - 44 1 - 11 0 - 14

1,6000 - 66,000 1 - 37 1 - 37 1-9 1-11

Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff

2013 $40 - 55 $40 - 100 $26 - 55 $22 - 45 $50 - 130 $20 - 150 $20 - 100

1 - 57

2015

2014

2013

12,753 8.07 2.46 2.37

14,088 7.67 2.13 2.15

14,885.15 14,646.36 -9.48% 8.90 9.96 5.22% 15.49% 10.23%

$46.13 $57.98 $46.18 $30.94 $103.93 $65.07 $55.54

$44.42 $53.54 $44.01 $30.19 $96.38 $59.94 $50.60

$43.59 $52.79 $43.34 $29.38 $91.88 $53.55 $46.05

2012

2012 $38 - 50 $38 - 90 $25 - 50 $18 - 95 $28 - 128 $16 - 100 $25 - 100

$43.35 $51.67 $42.80 $28.89 $92.44 $55.02 $45.67

Change

(from 2014)

3.85% 8.29% 4.93% 2.48% 7.83% 8.56% 9.76%

2015 Ratio of office staff to technicians 3 to 5

% “YES” to Yes/No Question

Paint Calc.

2015 28.00%

2014 14.12%

March 2016

2013

23.90%

2012 29.40%

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REGION 5 VIRGINIA BEACH AREA

ACCOMACK COUNTY, VA CHESAPEAKE CITY, VA FRANKLIN CITY, VA GLOUCESTER COUNTY, VA HAMPTON CITY, VA ISLE OF WIGHT COUNTY, VA MATHEWS COUNTY, VA NEWPORT NEWS CITY, VA NORFOLK CITY, VA NORTHAMPTON COUNTY, VA PORTSMOUTH CITY, VA SOMERSET COUNTY, MD SOUTHAMPTON COUNTY, VA SUFFOLK CITY, VA SURRY COUNTY, VA VIRGINIA BEACH CITY, VA WICOMICO COUNTY, MD WORCESTER COUNTY, MD YORK COUNTY, VA

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015 $42 - 52 $44 - 85 $42 - 52 $24 - 44 $65 - 120 $25 - 100 $15 - 60

900 - 50,000 1 - 20 1-4 1-5

2015 $45.19 $55.35 $45.06 $31.61 $88.84 $44.56 $32.78

10,757 5.48 1.87 1.76

2014 $42 - 48 $45 - 65 $42 - 48 $28 - 35 $65 - 98 $25 - 65 $25 - 50

2013 $40 - 55 $40 - 85 $28 - 60 $22 - 34 $40 - 110 $15 - 100 $10 - 50

3,000 - 22,000 1 - 20 1 - 28 1-4 1-5

2014 $44.59 $54.62 $44.03 $30.82 $85.83 $39.62 $34.57

9,308.7 6.34 2.04 2.11

2013 $44.27 $52.78 $44.76 $29.35 $84.51 $40.50 $31.69

11,228.29 8.00

2012 $44.41 $56.63 $44.17 $30.28 $82.50 $42.69 $33.54

2012 $42 - 55 $42 - 85 $32 - 55 $25 - 44 $30 - 108 $15 - 100 $15 - 85 1 - 20

Change (from 2014) 1.35% 1.34% 2.34% 2.56% 3.51% 12.47% -5.18%

12,681.69 -13.56% 6.95 -8.33% -16.59% 1.20%

2015 Ratio of office staff to technicians 2 to 3 % “YES” to Yes/No Question Paint Calc.

2015 19.00%

2014 13.79%

2013

25.00%

2012 22.00%

REGION 6

CHARLOTTESVILLE AREA

ALBEMARLE COUNTY, VA AUGUSTA COUNTY, VA BUCKINGHAM COUNTY, VA CHARLOTTESVILLE CITY, VA FLUVANNA COUNTY, VA GREENE COUNTY, VA HARRISONBURG CITY, VA LOUISA COUNTY, VA MADISON COUNTY, VA NELSON COUNTY, VA ORANGE COUNTY, VA ROCKINGHAM COUNTY, VA SHENANDOAH COUNTY, VA

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

2015 $45 - 75 $50 - 85 $45 - 75 $32 - 45 $60 - 95 $35 - 100 $10 - 65

2014 $44 - 50 $50 - 75 $42 - 50 $30 - 42 $50 - 85 $35 - 75 $10 - 50

Square Feet # of Techs # of Estimators # of Office Staff

1,500 - 35,000 1 - 30 1-8 0-5

2,400 - 15,000 1 - 10 1 - 15 1-2 1-5

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

$50.32 $67.26 $50.32 $35.68 $76.84 $58.75 $43.16

$47.47 $63.71 $46.59 $35.00 $70.38 $49.58 $36.65

$45.33 $61.17 $45.33 $33.83 $70.24 $51.92 $36.25

Square Feet # of Techs # of Estimators # of Office Staff

8,300 6.53 1.89 2.00

7,150 4.76 1.65 1.83

7,307.69 13,158.33 16.08% 4.70 5.61 37.18% 14.55% 9.29%

Average

March 2016

2014

2013

2012

$44.28 $58.00 $43.72 $31.83 $70.33 $46.88 $38.13

2012 $42 - 45 $50 - 80 $35 - 45 $28 - 35 $50 - 95 $25 - 75 $20 - 65

1 - 18

Change (from 2014)

6.00% 5.57% 8.01% 1.94% 9.18% 18.50% 17.76%

2015 Ratio of office staff to technicians 3 to 5

% “YES” to Yes/No Question

Paint Calc.

46

2015

2013 $44 - 50 $46 - 75 $44 - 50 $32 - 46 $55 - 95 $20 - 100 $10 - 50

2015 40.00%

2014 17.65%

2013

16.70%

2012 16.70%

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REGION 7 RICHMOND AREA

AMELIA COUNTY, VA BRUNSWICK COUNTY, VA CAROLINE COUNTY, VA CHARLES CITY COUNTY, VA CHARLOTTE COUNTY, VA CHESTERFIELD COUNTY, VA CUMBERLAND COUNTY, VA DINWIDDIE COUNTY, VA ESSEX COUNTY, VA GOOCHLAND COUNTY, VA GREENE COUNTY, VA HANOVER COUNTY, VA HENRICO COUNTY, VA JAMES CITY COUNTY, VA KING AND QUEEN COUNTY, VA KING WILLIAM COUNTY, VA LANCASTER COUNTY, VA LUNENBURG COUNTY, VA MECKLENBURG COUNTY, VA NEW KENT COUNTY, VA NORTHUMBERLAND COUNTY, VA NOTTOWAY COUNTY, VA PETERSBURG CITY, VA POWHATAN COUNTY, VA PRINCE EDWARD COUNTY, VA PRINCE GEORGE COUNTY, VA RICHMOND CITY, VA RICHMOND COUNTY, VA SUSSEX COUNTY, VA

Range

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015 $44 - 55 $44 - 75 $34 - 55 $30 - 48 $60 - 125 $25 - 90 $20 - 95

2014 $42 - 50 $45 - 68 $42 - 50 $30 - 42 $60 - 119 $25 - 95 $20 - 65

2013 $42 - 56 $48 - 78 $32 - 56 $26 - 42 $52 - 110 $20 - 100 $20 - 50

1,600 - 32,000 1,400 - 118,000 1 - 20 1 - 30 1 - 22 1-3 1-4 0-5 1-3

2012 $42 - 65 $44 - 75 $32 - 65 $15 - 45 $52 - 106 $25 - 85 $15 - 56.25

1 - 19

2015 Ratio of office staff to technicians 4 to 7

REGION 8 ROANOKE AREA

Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015 $45.27 $57.84 $45.11 $34.76 $84.53 $47.04 $41.68

2014 $44.73 $57.00 $44.56 $34.15 $83.46 $45.13 $37.24

10,457 6.32 1.81 1.82

2013 $44.16 $56.66 $43.62 $32.56 $80.10 $47.22 $37.31

2012 $45.34 $57.64 $44.96 $32.86 $80.98 $43.82 $35.63

10,241.25 15,851.61 11,656.52 5.52 6.30 6.68 1.67 1.78

% “YES” to Yes/No Question

Paint Calc.

2015 16.00%

2014 10.42%

2013 12.10%

Change (from 2014) 1.21% 1.47% 1.23% 1.79% 1.28% 4.23% 11.92%

2.11% 14.49% 8.38% 2.25% 2012 24.30%

ALLEGHANY COUNTY, VA AMHERST COUNTY, VA APPOMATTOX COUNTY, VA BATH COUNTY, VA BEDFORD COUNTY, VA BLAND COUNTY, VA BOTETOURT COUNTY, VA BRISTOL, VA BUCHANAN COUNTY, VA CAMPBELL COUNTY, VA CARROLL COUNTY, VA CITY OF SALEM, VA COVINGTON CITY, VA DANVILLE CITY, VA DICKENSON COUNTY, VA FLOYD COUNTY, VA FRANKLIN COUNTY, VA GILES COUNTY, VA GRAYSON COUNTY, VA HALIFAX COUNTY, VA HENRY COUNTY, VA HIGHLAND COUNTY, VA LEE COUNTY, VA LYNCHBURG CITY, VA MONTGOMERY COUNTY, VA NORTON CITY, VA PAGE COUNTY, VA PATRICK COUNTY, VA PITTSYLVANIA COUNTY, VA PULASKI COUNTY, VA ROANOKE COUNTY, VA ROCKBRIDGE COUNTY, VA RUSSELL COUNTY, VA SCOTT COUNTY, VA SMYTH COUNTY, VA TAZEWELL COUNTY, VA WASHINGTON COUNTY, VA WISE COUNTY, VA WYTHE COUNTY, VA

Range

s

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage Square Feet # of Techs # of Estimators # of Office Staff

2015 $42 - 50 $50 - 75 $36 - 50 $30 - 40 $50 - 119 $25 - 100 $15 - 65

1,500 - 40,000 1 - 22 1-8 0-5

2014 $42 - 48 $50 - 75 $34 - 48 $30 - 42 $55 - 105 $25 - 75 $15 - 55

2013 $40 - 55 $44 - 96 $30 - 55 $24 - 42 $50 - 139 $20 - 125 $20 - 75

2,000 - 38,000 1 - 18 1 - 40 1-6 1-4

2012 $27.50 - 50 $44 - 75 $27.50 - 50 $28 - 44 $27.50 - 92 $20 - 100 $10 - 50 1 - 11

2015 Ratio of office staff to technicians 1 to 2

Average

Body Labor Frame Labor Paint Labor Paint Material Mechanical Labor Inside Storage Outside Storage

Square Feet # of Techs # of Estimators # of Office Staff

2015 $46.20 $58.00 $45.93 $34.30 $73.66 $53.09 $41.22

9,707 6.24 1.64 1.31

2014 $45.58 $58.58 $34.93 $33.88 $70.47 $48.04 $36.67

2013 $44.01 $54.42 $43.64 $30.46 $83.14 $53.44 $42.64

2012 $43.34 $55.54 $42.64 $32.38 $63.55 $44.82 $30.52

8,538.04 9,798.18 22,442.97 5.37 6.30 3.86 1.72 1.41

% “YES” to Yes/No Question

Paint Calc.

2015 24.00%

2014 15.00%

2013

12.80%

March 2016

Change (from 2014) 1.36% -0.99% 31.49% 1.24% 4.53% 10.51% 12.41%

13.69% 16.20% -4.65% -7.09%

2012 18.40%

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COVER STORY

This year’s fourth annual Labor Rate Survey results are compelling to the Washington Metropolitan Auto Body Association, as they once again show there is a grim stagnancy in the area’s rate in spite of the continuous rise of all costs associated with business (i.e., taxes, benefits, electricity, paint/materials, tooling, equipment and more). Even the 10-point rise in the Producer Price Index (PPI) as reported by the Bureau of Labor Statistics – for the category closest (Automobile, Light Truck and Utility Vehicle Mfg) and for the same time frame of 2011-2015 – is arguably even greater for our industry given that our equipment and other costs cannot be recouped as quickly as in a straight manufacturing environment.

There are many repairers whose sentiments involve equating the rates they read in the Survey to something closer to what they “want” to see. The WMABA office often gets participants who say, “That didn’t change anything; we still have the same rate in our industry as last year.” What the association wants the industry to know is that a survey just reflects current conditions. While the rates charged are individual business decisions, the repairers can get involved with the association and voice their concerns over the stagnancies mentioned. Reimbursement rates are not the same as door rates, and the practice of one industry arbitrarily deciding what “prevailing market prices” are without verifiable surveys or any transparency is plain wrong.

The issue of what an “average number” means is also something that gets brought into the mix with survey discussions. In order to have an average, you need to have an upper half and a lower half, including a deviation – check out “bell curve” – that would place the majority of repairer prices in line with our reported range. Any reasonable person would say that something within 10-15 percent of the average is more than fair, but when you look at what happens in our industry, there are repairers getting ripped apart for $2 an hour or something equivalent to a less-than-five-percent difference.

There are some improvements in sporadic categories of the regions, such as for the Baltimore area (Region 1), with the 2014 mechanical Labor Rate average of $96.96 per hour jumping 9.24 percent to $105.92 for 2015. Additionally, the amount of respondents who said they used a paint and material calculator rose from 10.53 percent in 2014 to 24 percent in 2015. Also, the Annapolis area (Region 2) saw a 23.26-percent jump in inside storage rates, going from $49.69 in 2014 to $61.25 in 2015.

This Survey is a snapshot of where the industry is, and WMABA hopes this information is of use to repairers in the entire Washington Metropolitan area as the association continues to be the voice for issues surrounding the market and working out solutions to benefit the industry.

Look for Part Two of WMABA Labor Rate Survey results in next month’s Hammer & Dolly. H&D

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Mark Schaech, Jr.

(410) 358-5155 mark@marksbodyshop.com

PRESIDENT’S

MESSAGE STEERING AWAY FROM THE LAW

I recently received calls from two different Maryland shop owners who both asked me the same question: What can I do about steering?

Well, just today, we had a customer cancel her appointment because she was told by an insurance company estimator that if she brought her car to my shop, she would be overcharged and owe money above her deductible. She also stated that the estimator told her that the company had problems with us in the past. I guess they deem it a “problem” when we want to use quality parts, perform safety procedures as required by the manufacturer and provide our customer with excellent service and a safe and proper repair. If that is a “problem shop,” then we wear that label proudly.

You can’t save every customer, but you want to meticulously document every time you are informed of a customer being steered away from your shop. Get as much information as possible about the adjuster, the insurance company and the things that were said. Document, document, document. This way, when enough is enough and the time comes, you have the proof to put in front of the Attorney General, the Insurance Administration or the judge and jury.

To drive home the point that steering has no place in the collision repair industry, here is what the Maryland Insurance Code has to say on the matter:

§ 10-503. (a) An adjuster, appraiser or insurance producer or employee of an insurer may not: (1) recommend the use of a specific repair service or source for the repair or replacement of property damage to a motor vehicle without informing the claimant or insured that the claimant or insured does not have to use the recommended repair service or source; (2) require that an appraisal or repair be made in a specific repair shop; (3) require that a claimant or insured use a specific contractor or repair shop for a repair service or repair product; or (4) intimidate, coerce or threaten a claimant or insured to use a specific contractor or repair shop for a repair service or repair product. (b) An adjuster or appraiser may not accept a gratuity or other form of remuneration from a repair service for recommending that repair service to a claimant or insured.

§ 10-504.

A person that intentionally violates this subtitle is subject to: (1) a civil penalty not exceeding $1,000 for each violation; and (2) denial, suspension or revocation of any license held under this article.

Keep the above text in mind the next time steering occurs at your shop. You don’t have to accept it! H&D

WE NEED YOUR LEGISLATIVE CONTRIBUTION! I appreciate WMABA working on my behalf at the state capitol(s)!

Here is my contribution to the legislative efforts.

P.O. Box 3157 • Mechanicsville, VA 23116

Name: ______________________________________Company: __________________________________ Address: __________________________________________________________________________________ City:____________________________________________State: ______________________Zip: ________ Phone:

______________________________Email:

Donation Amount: Check Enclosed

$50

$100

____________________________________________ $500

Other ________________

Credit Card (Visa, Amex, MC)# __________________________________________________________ Exp: ________

Name on Card: ______________________________Signature: __________________________________ 50

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NEWSFLASH

Updates on what's happening in your industry.

Urethane Supply Company Announces Name Change to Polyvance Urethane Supply Company, a pioneer in the field of automotive plastic repair since 1981, has announced a change in the name of its business to “Polyvance.” The change in name reflects the progression that has occurred in automotive plastics since the company’s inception.

“Back in 1981, most of the bumper covers were actually made from urethane plastic,” says Kurt Lammon, company president. “The founder of our company, Jim Sparks, came up with the original name because he supplied products required to repair urethane bumper covers.”

Because most bumper covers are now made from blends of polypropylene, the old name has created confusion in the marketplace.

“We often get calls from people who want to buy urethane foam, thinking that we supply urethane,” says Lammon. “We wanted a name

that speaks to our main mission, which is advancing the technology of polymer repair.”

“Advancing Polymer Repair” is the official tagline and the inspiration for the name “Polyvance.” Polyvance will continue to be devoted entirely to helping body shops profit from plastic repair and refinishing through its innovative products and training. The company will continue production of its most popular products – the 6059-C Nitro Fuzer nitrogen plastic welding system, the 3601 and 3611 Bumper & Cladding Coat Adhesion Primer and the 5700HT Mini Weld Model 7 airless plastic welder – as well as its complete line of plastic repair and refinishing products. Polyvance’s products will continue to be available through paint, body and equipment distributors across North America.

H&D

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ADVERTISERS’ INDEX

Air-Tech Products ................................35 Alexandria Toyota ................................40 American Honda Motor Company ......7

AP Media ............................................35 Audi Group ..........................................9

Audi Silver Spring ................................IBC

Axalta Coating Systems ......................OBC

BMW Group ........................................28-29 BMW of Silver Spring ..........................IBC BMW of Fairfax....................................3

CAPA ..................................................18 CarPart.com ........................................41 Chesapeake Automotive Equipment ..54

Database Enhancement Gateway ......34

Empire Auto Parts................................54 Ford Group ..........................................19 GM Parts Group ..................................15 Honda Group ......................................23 Hyundai Group ....................................25

IkotecUSA............................................41 Koons Ford ..........................................53 Malloy Hyundai ....................................8

Mazda Group ......................................16 Mid-Atlantic Paint & Supply ................4

MINI Group ..........................................11

Mitsubishi Group..................................51 Mopar Group ........................................33

Nissan Group ......................................49 NOrTHEAST® 2016............................31

Nucar ..................................................27 O’Donnell Honda ................................40 Packer Norris Parts ............................22

Porsche Group ....................................24

Porsche Silver Spring ..........................IBC PPG ....................................................IFC Safety regulations ..............................48

Subaru Group ......................................36 Toyota Group ......................................42 USI of North America ..........................33

VW Group............................................52 Wheel Collision Center ........................48

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