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The Path to Certification Roadblocks to Scanning Better Estimating through SCRS www.grecopublishing.com
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VISIT US AT NORTHEAST® BOOTH 427
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SIMPLER. FASTER. BETTER. Original BMW replacement parts represent the ultimate in safety, quality and reliability. Imitations can be less expensive but often lack the fit, finish and function that is expected from your BMW customers. With most parts in stock, BMW of Fairfax is your best choice for Original BMW parts. · · · ·
One stop shopping experience with on-shelf availability exceeding 16,000 line items. Beltway’s most predictable and dependable delivery system to meet your business demands. Same day availability on most parts ordered before 2:30pm. 24 / 7 ordering convenience through Collision Link.
BMW of Fairfax Wholesale Parts Hotline: 800-879-2269 (1-800-TRY-ABMW) Parts Direct: 855-397-4426 24 Hour Fax: 703-641-8562 2805 Old Lee Highway, Fairfax, VA 22031 Orders accepted by phone, fax, and now e-mail to speed your delivery and your repairs. Ask about our next-day UPS delivery. Email: parts@bmwoffairfax.com Visit us on the web: www.bmwoffairfax.com March 2017
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March 2017
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CONTENTS March 2017
COVER STORY 44 RUNNING IN PLACE? WMABA’S SURVEY RESULTS - PART 2
The conclusion of WMABA’s fifth annual investigation. BY NICK FERNANDES
LOCAL NEWS 16 A BLIP OR TWO ON THE LEGISLATIVE RADAR – Some items of note for the industry. BY JORDAN HENDLER
VIRGINIA AND MARYLAND
DEPARTMENTS
NATIONAL NEWS 2017 TO OFFER A “PATH TO CERTIFICATION” 22 NORTHEAST The legendary regional show takes on a critical matter. BY NICK FERNANDES
8
Insurers and industry leaders clash over OEM procedures. BY JOEL GAUSTEN
10
The association steps up its efforts to assist repair pros.
12
24
CALL FOR VEHICLE SCANNING MET WITH RESISTANCE
28
SCRS ELEVATES SUPPORT OF ESTIMATORS
32
CIF RAISES BIG AGAIN AT 7TH ANNUAL GALA FUNDRAISER
Industry pros gather to help their own.
13
LOCAL FEATURE 36
COLLISION REPORTING CENTERS: ANOTHER POSSIBLE TRAP FOR SHOPS? A new steering danger appears in Virginia.
14
18
BY TOM SLEAR
48
50
TECHNICAL FEATURE 40
53
Calendar of Events Editor’s Message JOEL GAUSTEN
Executive Director’s Message JORDAN HENDLER
WMABA Membership Application
WMABA Sponsorship Page News From Honda GARY LEDOUX
President’s Message MARK SCHAECH, JR.
What’s WMABA Up To?
WMABA Board of Directors
THOUGHTS ON REKEYING ESTIMATES: PART 2 OF 2
54
BY LARRY MONTANEZ III, CDA
Stock Images © www.istockphoto.com
More on a growing industry topic.
March 2017
Advertisers’ Index
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6
March 2017
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VISIT US AT NORTHEAST® BOOTH 227
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CALENDAR OF
EVENTS
CLASS LISTINGS
March 1, 2017
March 17-19, 2017 AASP/NJ’s 40 th Annual NORTHEAST ® Automotive Serv ices Show Meadowlands Exposition Center, Secaucus, NJ
For more information, visit aaspnjnortheast.com and see page 22.
March 21, 2017
STRUCTURAL STRENGTHENING STEEL
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY
ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT
March 22, 2017
April 12, 2017
Criswell Collision Center, Annapolis, MD
ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS
FULL-FRAME PARTIAL REPLACEMENT
FinishMaster, Springfield, VA
March 2, 2017
Caliber Collision Center, Randallstown, MD CORROSION PROTECTION MEASURING
King Volkswagen, Gaithersburg, MD
March 7, 2017
CORROSION PROTECTION
Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA
Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA ALUMINUM-INTENSIVE VEHICLE REPAIRS
Craft Collision Center, Lynchburg, VA N T Auto Body Inc., Alexandria, VA
SECTIONING OF STEEL UNITIZED STRUCTURES
FinishMaster, Springfield, VA
March 23, 2017
ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS
ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS
Subway Auto Body, Gambrills, MD
March 28, 2017
Delcastle Vo-Tech, Wilmington, DE
FULL-FRAME PARTIAL REPLACEMENT
COLOR THEORY, MIXING TONERS & TINTING
Canby Motors Collision Repair, Aberdeen, MD COLOR THEORY, MIXING TONERS & TINTING
Frederick Co. Career & Tech, Frederick, MD
March 8, 2017
ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT
FinishMaster, Springfield, VA
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR
N T Auto Body Inc., Alexandria, VA
March 9, 2017 MEASURING
Criswell Collision Center, Annapolis, MD
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES
Delcastle Vo-Tech, Wilmington, DE
2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE
Caton Auto Body, Laurel, MD
March 29, 2017
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES
FinishMaster, Springfield, VA
March 30, 2017
CORROSION PROTECTION
King Volkswagen, Gaithersburg, MD
STRUCTURAL STRAIGHTENING STEEL
FinishMaster, Springfield, VA CORROSION PROTECTION
Uni-Select USA, Baltimore, MD AUTOMOTIVE FOAMS
Criswell Collision Center, Annapolis, MD
SQUEEZE-TYPE RESISTANCE SPOT WELDING
King Volkswagen, Gaithersburg, MD
March 14, 2017
PLASTIC & COMPOSITE REPAIR
Caton Auto Body, Laurel, MD
COLOR THEORY, MIXING TONERS & TINTING
Keystone – Linthicum, Linthicum, MD
March 15, 2017
ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS
Waldorf Toyota, Waldorf, MD
March 16, 2017
STEERING & SUSPENSION DAMAGE ANALYSIS
Criswell Collision Center, Annapolis, MD MEASURING
Subway Auto Body, Gambrills, MD
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY
Frederick Co. Career & Tech, Frederick, MD
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Industry training opportunities and don't-miss events.
March 2017
Criswell Collision Center, Annapolis, MD
April 4, 2017
SQUEEZE-TYPE RESISTANCE SPOT WELDING
Delcastle Vo-Tech, Wilmington, DE
STEERING & SUSPENSION DAMAGE ANALYSIS
Frederick Co. Career & Tech, Frederick, MD
April 13, 2017
AUTOMOTIVE FOAMS
King Volkswagen, Gaithersburg, MD
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES
Uni-Select USA, Baltimore, MD
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY
Criswell Collision Center, Annapolis, MD
April 18, 2017
FULL-FRAME PARTIAL REPLACEMENT
Keystone – Linthicum, Linthicum, MD
VEHICLE TECHNOLOGY & TRENDS 2016
Delcastle Vo-Tech, Wilmington, DE
April 19, 2017 MEASURING
Subway Auto Body, Gambrills, MD
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY
N T Auto Body Inc., Alexandria, VA
April 20, 2017
ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT
Criswell Collision Center, Annapolis, MD PLASTIC & COMPOSITE REPAIR
King Volkswagen, Gaithersburg, MD
Subway Auto Body, Gambrills, MD
April 25, 2017
April 5, 2017
April 26, 2017
2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE
Delcastle Vo-Tech, Wilmington, DE
SECTIONING OF STEEL UNITIZED STRUCTURES
N T Auto Body Inc., Alexandria, VA
April 6, 2017
ADHESIVE BONDING
Caliber Collision Center, Randallstown, MD
REPLACEMENT OF STEEL UNITIZED STRUCTURES
Criswell Collision Center, Annapolis, MD
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY
REPLACEMENT OF STEEL UNITIZED STRUCTURES
Caton Auto Body, Laurel, MD
FULL-FRAME PARTIAL REPLACEMENT
Waldorf Toyota, Waldorf, MD
April 27, 2017
ADHESIVE BONDING
Criswell Collision Center, Annapolis, MD
SQUEEZE-TYPE RESISTANCE SPOT WELDING
Frederick Co. Career & Tech, Frederick, MD
King Volkswagen, Gaithersburg, MD
April 11, 2017
PLASTIC & COMPOSITE REPAIR
Jones Body Shop, Bel Air, MD
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR
Caton Auto Body, Laurel, MD
www.i-car.com or (800) 422-7872 for info
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KEEP IT GENUINE
INSIST ON GENUINE GM PARTS
We stand behind our product, providing collision repair professionals and vehicle owners peace-of-mind and confidence. Contact these Genuine GM Parts dealers for all your parts needs: NU CAR CHEVROLET 172 North Dupont Highway New Castle, DE 19720 Phone: 800-633-6606 Fax: 800-346-5285 e-mail: parts@nucar.com www.nucar.com
OURISMAN CHEVROLET 4400 Branch Avenue Temple Hills, MD 20748 Phone: 301-899-6990 Fax: 301-899-9375 www.ourismanchevrolet.com
POHANKA CHEVROLET 13915 Lee Jackson Memorial Highway Chantilly, VA 20151 Phone: 888-266-2993 Direct: 703-502-3729 Fax: 703-968-0932 www.pohankachevrolet.com
RADLEY CHEVROLET 3670 Jefferson Davis Highway Fredericksburg, VA 22408 Phone: 800-355-8202 Direct: 540-898-0055 Fax: 540-891-2074 www.radleychevrolet.com
March 2017
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Joel Gausten
EDITOR’S
(973) 600-9288 joel@grecopublishing.com
MESSAGE The (Easy) Road to Success
If you’ve read Hammer & Dolly for any real period of time, you’ve noticed that we cover industry events across the country. This means that a good portion of my year involves traveling. Although I’ve lived in New Hampshire for nearly a decade, every March gives me a much-anticipated opportunity to spend a few days in my home state of New Jersey for the annual NORTHEAST® Automotive Services Show. Now in its 40th year, NORTHEAST is hosted by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) and aims to present the industry with three days of national-level exhibitors, seminars, training and events in a regional setting. Held March 17-19 at the Meadowlands Exposition Center in Secaucus, NJ, it is the only industry show of its kind available within comfortable driving distance from the WMABA community. In last month’s issue, we detailed the upcoming involvement of both WMABA mainstay Mike Anderson and the Society of Collision Repair Specialists (SCRS) at this year’s show. Now, we are pleased to announce a special two-day NORTHEAST panel, “AASP/NJ’s Path to Certification,” which will offer direct insight from OEMs and repair professionals into how certification is reshaping the automotive profession. Former WMABA President Barry Dorn is one of the many 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 don.beaver3551@gmail.com 443-235-6668
BOARD OF DIRECTORS
Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Barbara Chase (barbara@siskautobody.com) 301-855-5525
ADMINISTRATION
Ben Gibson (bgibson@harrisonbodyworks.com) 804-355-8151 Ashley Kruger (akruger@baughautobody.com) 804-285-8045 Bill Hawkins (whawkins@mybmwannapolis.com) 410-349-2578
EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116
10
collision repair business owners who will be participating in this unique and valuable discussion, and it’s a day in the history of this industry you simply can’t miss. I spend a lot of time on the road and know this industry well, so take my word for it when I say that you can’t experience this kind of high-level training and networking anywhere else unless you get on a plane and travel a few thousand miles. If you’re looking for an unforgettable time closer to home, then I hope to see you in Secaucus March 17-19! H&D
March 2017
STAFF
PUBLISHER SALES DIRECTOR EDITORIAL DIRECTOR CREATIVE DIRECTOR ASSISTANT EDITOR OFFICE MANAGER
Thomas Greco thomas@grecopublishing.com
Alicia Figurelli alicia@grecopublishing.com
Joel Gausten joel@grecopublishing.com
Lea Velocci lea@grecopublishing.com
Nick Fernandes nick@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 © 2017 Thomas Greco Publishing, Inc.
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VISIT US AT NORTHEAST® BOOTH 141
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EXECUTIVE DIRECTOR’S
MESSAGE
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
AND THE SURVEY SAYS...
The broken record just keeps playing along… As you can see by Part 2 of the Labor Rate Survey and the sections you responded to about marketplace and daily business practices, it’s more of the same. While that can make you feel down, understand that it’s helpful to know you are definitely and sincerely NOT ALONE! The most derogatory and hurtful of all statements made to a repairer is, “You’re the only one.” The only one who charges X for anything, performs it that way or needs to adhere to a particular OEM requirement or recommendation. I love statistically valid statements, and being the only one is an impossibility. Not being the only one usually isn’t any help if you don’t know two things: One, who the other ones are, and two, how you overcome that argument. At the time of this writing, we are a couple days away from a Mike Anderson meeting in Maryland. You’ll undoubtedly get the eyeful in our next issue on that, but I have no question in my mind that he’d say you overcome these things with facts. Present all the facts. Facts are the best negotiation tactic there is. But what if facts aren’t enough? I’m sure he’d say you’ll have to involve the customer. If you want to make up the
difference in price, then it will either be paid by the customer or the insurer will need to delineate the argument to them. It will involve the “only one” argument, but facts to the customer will come down to whether or not they agree with your case or theirs. Sometimes it will come down to an argument between them. What if you don’t want to cause the rift? Other repairers are using a hold-harmless agreement. You want to use aftermarket parts against the OE recommendation or not have the pre- or post-repair scan performed? Then sign on the dotted line. (The customer, that is.) If you give the customer the option to pay the difference and they just can’t come up with it and the insurer won’t budge, then why should the repairer be on the hook of liability? This is another option. Many repairers wilt at the thought of telling the customer bad news – it just feels bad. But if you were a doctor, where you first do no harm, then even tough news is still required to be shared. A doctor wouldn’t come out of surgery and say everything went great if you died on the table four times and will need further medical attention! You assume a form of Hippocratic Oath when you assure the customer you are going to fix their car right. Facts are facts, and that should be the basis of conversations with both customers and insurers. You don’t have to give them every gory detail, but if something went wrong, they really have a right to know. It is their car, not ours. In the age of too much information, maybe we should get on board. The more people know of repair issues we face when trying to do the right thing, the more likely attention from positive sources can happen! H&D
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective. 12
March 2017
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Y! JOIN TODA
March 2017
13
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THANKS
YOU WMABA thanks their generous supporters of the
LEVEL 1
Corporate Sponsor Program for 2017!
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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March 2017
LEVEL 2 Automotive Training Institute Certified Automotive Parts Association FinishMaster Mid-Atlantic Paint & Supply National Coatings and Supplies WheelsOnsite
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Audi dealers strive to make you an Audi Genuine Parts fan •
Audi Parts Professionals are your subject matter experts on collision parts, replacement components and mechanical items.
•
Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.
•
Installing Audi Genuine Parts contributes towards improved cycle time that makes both your customer and their insurance company happier.
•
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.
Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Arlington 3200 Columbia Pike Alexandria, VA 22204 703.739.7490 Fax: 703.684.8420
Audi Bethesda 5206 River Road Bethesda, MD 20816 Parts Direct: 240.762.5636 Parts Fax: 301.718.1847 www.audibethesda.com
Rockville Audi 1125 Rockville Pike Rockville, MD 20852 Parts Direct: 301.296.2870 Parts Fax: 301.762.5055 www.rockville-audi.com
Audi Virginia Beach 2865 Virginia Beach Boulevard Virginia Beach, VA 23452 Toll Free: 800.277.2122 Parts Direct: 757.687.3483 Fax: 757.687.3490 www.checkeredflag.com
Audi Annapolis 1833 West Street Annapolis, MD 21401 Parts Direct: 443.482.3280 Parts Fax: 443.482.3281 www.audiannapolis.com
Audi Chantilly 14839 Stonecroft Center Court Chantilly, VA 20151 703.956.2100 Fax: 703.956.2139 www.audichantilly.com
Audi Silver Spring 3151 Automobile Boulevard Silver Spring, MD 20904 844.413.6929 Fax: 301.890.3748 www.audisilverspringparts.com
March 2017
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Bills of interest to members. BY JORDAN HENDLER
LOCAL
NEWS A Blip or Two on the Legislative Radar – Virginia and Maryland Virginia House Bill 2022 will likely be the vehicle used to continue the Roanoke collision reporting centers outlined in this month’s issue (“COLLISION REPORTING CENTERS: ANOTHER POSSIBLE TRAP FOR SHOPS?” on page 36), but the legislative language doesn’t seem to offer much insight. The story reported here has far more information than a bill will offer. It will be interesting to see what kind of regulatory oversight will become necessary if shop referral, a.k.a steering, becomes an issue. There is no doubt that we’ll have to lean into the Bureau of Insurance for that fix.
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March 2017
In Maryland, for only a short time, a Senate Bill mandating the use of OEM or certified aftermarket parts with a consumer consent clause made a second minor blip on the WMABA radar. The CAPA-supported language was withdrawn after the Senator prematurely initiated it. That said, WMABA would likely have supported the bill as in the past, as we believe the consumer has a right to know and be informed of their parts choices for repair. Without a change from current language, they could only rely on the safeguard of the disclaimer language found at the end of the estimate. If they minimally
had to consent in writing, then they would have an opportunity to ask questions about what parts are going to be used on their vehicle. Maybe a regulatory option could be found! H&D
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Contact these Ford or Lincoln Mercury dealers for all your parts needs: WALDORF FORD 2440 CRAIN HWY, WALDORF, MD 20601 Phone: 301-843-3028 Fax: 301-843-0334 e-mail: parts@waldorfford.com www.waldorfford.com
SHEEHY FORD 5000 AUTH RD, MARLOW HEIGHTS, MD 20746 Phone: 301-899-6300 Fax: 301-702-3650 www.sheehyford.com
KOONS FORD OF ANNAPOLIS 2540 RIVA ROAD ANNAPOLIS, MD 21401 Phone: 410-266-3083 Fax: 410-224-4239 www.koonsford.com
© 2017, Ford Motor Company
March 2017
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A
NEWS FROM
HONDA
merican Honda launched their ProFirst certified body shop program in March 2015 during that year’s NORTHEAST® Automotive Services Show.
The program was an instant success, and American Honda
started adding new shops at a blistering pace and quickly headed towards their build-out goal of more than 1,000 shops. Two years later, the end of the build-out is getting near. Of course, the more densely populated mid-Atlantic to Northeast states call for more
shops than less populated areas, so there are still a few open points for ProFirst shops. If you think being a ProFirst shop is right for you, contact American Honda via email at profirst@ahm.honda.com to see if there is an open spot in your area.
To qualify, shops must be either I-CAR Gold Class or a
VeriFacts VQ or Medallion shop. In addition, shops must take
Honda/Acura specific training (all one-hour online classes and all administered through I-CAR). Shops must also meet tool and
equipment requirements, be physically customer-centric where they need to be and have a CSI system in place.
Qualifying shops receive a plaque suitable for public display, an
exterior sign, a poster and other paper collaterals. They also receive free access to all Honda and Acura service and repair information and a place on American Honda’s shop locator website. Recently added benefits include towing to ProFirst shops through Honda’s
Roadside Assistance program, access to a wide array of ProFirst-
exclusive promotional products and free copies of ProFirst Quarterly
magazine, which contains valuable technical information and other
tips and stories to help owners run a better shop.
Here’s what other shops had to say about being a ProFirst
shop:
If your shop is ready for ProFirst, send an email to profirst@ahm.honda.com and do it today because the end is near – almost.
18
March 2017
Updates from an OEM.
BY GARY LEDOUX
“As one of the first collision repair shops to join the ProFirst Certified program, we have always been committed to safe, proper and OEM-quality repairs. In a joint effort with Honda, our facility has invested in the proper equipment and training to ensure that only the best repairs are performed on all Honda and Acura vehicles. As a ProFirst Certified shop, we have benefited greatly from this recognition. In addition to our store signage, consumers looking for high-quality, certified repairs find our facility through the body shop locator at collision.honda.com. It is a much easier sale when the vehicle owner knows our goals are in line with the manufacturer’s; we know we have found a customer who will appreciate everything we will do to make sure that the automobile looks and performs the way it did prior to the accident.”
Mark J. Schaech, Jr. Owner, Mark’s Body Shop Baltimore, MD
“Since becoming ProFirst Certified, my techs and service reps have really enjoyed using the service website. We used to spend hours gathering data and trying to interpret repair guidelines. Now everything is just a click away, plus we have confidence that the information is accurate when making repair decisions. Honestly, I don’t know how other shops are repairing these cars without using this system.”
Randy Tracey Owner, Subway Auto Body Gambrills, MD
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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers. Ourisman Honda 3371 Ft. Meade Rd. Laurel, MD 20724 Direct: 301-498-6050 Fax: 301-498-0157 www.laurelhonda.com
Honda of Tysons Corner 1580 Spring Hill Rd. Vienna, VA 22182 Direct: 703-749-6652 FAX: 703-821-4229 www.hondatysonscorner.com E-mail: sebastian.venegas@hondaoftysonscorner.com
Miller Honda 3985 Valley Pike Winchester, VA 22602 Direct: 800-296-5020 Direct Local: 540-868-9916 Fax: 540-869-1074 E-mail: bmorgan@drivemiller.com
March 2017
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What’s the difference between “Certified” and CAPA Certified?
Let us count the ways: Real testing by real testing professionals who do nothing else. In a real testing facility. Against real standards—so real they’re published for all to see. Everything out in the open. Complete transparency. That’s the difference between apples and oranges—and what separates CAPA Certification from “certifiers.” Which is why CAPA created the first true automotive crash part certification program in the industry over 29 years ago. To eliminate surprises and provide the certainty of true quality to everyone whose livelihood—or even whose life—depends on a quality repair. What people think of you is important. So you know what replacement parts to insist on. The only genuine replacement parts tested and found good enough to earn the yellow and blue CAPA Quality Seal. Because what people think of us is important, too.
TM
If it isn’t CAPA Certified, it isn’t a genuine replacement part.
20
March 2017
capacertified.org
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Unsurpassed Quality. Genuine Hyundai Parts.
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. Fairfax Hyundai 10925 Fairfax Blvd. Fairfax, VA 22030 Phone: 703-273-5188 FAX: 703-352-3115 E-mail: parts@fairfaxhyundaiinc.com
Fitzgerald Lakeforest Hyundai 905 North Frederick Ave. Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
Malloy Hyundai 1880 Opitz Blvd. Woodbridge, VA 22191 Parts Direct: 703-490-8263 Fax: 703-490-3864 E-mail: hmkparts@aol.com
Checkered Flag Hyundai 3033 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: 757-687-3463 Fax: 757-687-3468 hyundai.checkeredflag.com
March 2017
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NATIONAL
NEWS 2017 The Shop Perspective
to Offer
a “Path
to Certification”
The OEM Perspective, Part 2
After a successful certification panel at the 2016 NORTHEAST Automotive Services The OEM Show, an expanded four-session series Perspective, Part 1 will debut during this year’s 40th Annual event March 17-19, showcasing the main parties involved in the certification process – OEMs, tooling and equipment providers and shops. This special program, “AASP/NJ’s Path to Certification,” will be hosted by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) and held March 17-18 at the Meadowlands Exposition Center in Secaucus, NJ. “AASP/NJ’s Path to Certification” will feature “The Shop Perspective” (a panel that will discuss topics such as cost versus ROI, training concerns, accessibility to parts and real world experience), “The OEM Perspective” (a two-part discussion that will outline components of OEM certification including available training, marketing, costs and safety concerns) and “Considerations in Tooling and Equipment” (in which brand representatives from tool and equipment providers will talk about costs, training availability, safety concerns and future advanced technologies).
Considerations in Tooling and Equipment
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March 2017
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National views, regional focus.
MABA Treasurer Barry Dorn, owner of Dorn’s Body and Paint (Mechanicsville, VA), is one of many shop owners who will participate in “The Shop Perspective.” He believes that the panel will be helpful for shops interested in becoming certified. “Having gone through the process, I know there are many moving parts to any OEM certifications – culture, equipment, training and capital outlay. Vetting out who is right and who is not is critical.” Dealing with knowledgeable and demanding customers, Dorn has been able to increase his staff’s skills by becoming a certified shop. “Our level of training more than quadrupled over previous years. We sometimes feel like we run a travel agency. You have to cater to very market-savvy clients who know what they want and how they want it.” Dorn hopes that NORTHEAST’s visitors will decide whether or not certification is a good option for their facilities, as it is not for every shop owner. “You must know your operation and your team very well before making the investment.” Another “Shop Perspective” panelist, Brooklyn-based shop owner Jim Carvino (Rojo Collision), has been certified for 10 years and he said it is what allows his business to be successful. “I don’t see how a shop can operate without certification,” he says. As the only certified shop in the area, Carvino gets many clients who are specifically looking for a shop that is certified to fix their Mercedes-Benzes, Audis, Cadillacs, Volkswagens, Porsches and many other car makes. “In our area in Brooklyn, there’s really no certified shops, so pretty much I’m really the only one.” Fellow panelist Tom Elder (Compact Kars, Clarksburg, NJ) says that every shop should be I-CAR Gold Class at the bare minimum. “These cars are way too hard to fix. You just can’t fix them without having some training or knowledge.” Elder credits NORTHEAST as having all of the “key players” getting together under one roof and networking. “It’s the only game in town, and it provides manufacturers, vendors, insurers, schools, shops and the general public an opportunity to understand what our industry is about and to exchange ideas and further their skills.” Massachusetts-based shop owner and fellow panelist Rick Starbard (Rick’s Auto Collision, Revere, MA) wants those who attend the discussion to know that certification will set them apart from their competitors and drive better quality. “I look at this as a way to set us apart from a lot of the shops in my area, and I would rather have my referrals come from an OE driving quality rather than from an insurer driving price.” Starbard added that NORTHEAST provides excellent educational opportunities for shop owners and allows him to exchange information with others in the industry. “[It provides] education and the opportunity to see some new products. Most importantly, it’s a chance to stay connected with a lot of my colleagues.” Dorn was quick to echo these sentiments. “You have a wide variety of vendors and classes that help you understand where you fit into newer concepts and overall operations. Knowing this is critical in today’s business climate,” he said.
W
BY NICK FERNANDES
With the topic of certification continuing to grow in prominence within the industry, “OEM Perspective” panel moderator Aaron Clark (vice president of national certification and network development for Assured Performance Network) hopes to tackle the problem of misinterpretation during the process. “There’s a lot of misinformation in the industry, and hopefully we can demystify some of that,” he says. The two-part “OEM Perspective” discussions will explore components of OEM certification including available training, marketing, costs and safety concerns. Clark says the growth of NORTHEAST in the past 10 years and the high participation by shops makes it an ideal location for a such a discussion on certification to take place. “We run a booth for our company in other trade shows every year, but we don’t see as much activity at other trade shows as we do at NORTHEAST.” NORTHEAST 2017 would not be able to offer so much to the thousands who are set to attend without the tremendous support of the following: Platinum Sponsor – BASF, Gold Sponsor – Ford, Silver Sponsors – American Honda, Flemington Car & Truck Country, Door Prize Sponsor – Axalta Coating Systems, Lanyard Sponsor – Pro Spot/Innovative Solutions & Technology. For more information on the NORTHEAST Automotive Services Show (including how to register), visit aaspnjnortheast.com. For more information on AASP/NJ, visit aaspnj.org. H&D
Visit us at NORTHEAST® Booth 317
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The debate heats up.
NATIONAL
BY JOEL GAUSTEN
NEWS
CALL FOR VEHICLE SCANNING MET WITH RESISTANCE OEM-recommended procedures matter, and it is time for insurers to acknowledge this reality. This was the takeaway of recent industry gatherings in Palm Springs, CA, where the quarterly meetings of both the Society of Collision Repair Specialists (SCRS) and the Collision Industry Conference (CIC) featured agenda items to address the growing issue of pre-and postrepair scanning. These discussions were not only in response to the ongoing release of OEM position statements, but an attempt to address concerns from repairers who have faced resistance from insurers in receiving compensation for performing these scans before and after repairs. During the SCRS Open Board Meeting, Past SCRS Chairman Barry Dorn stressed that shops that do not perform auto body work per OEM-recommended procedures – including pre-and post-repair scanning – could leave themselves exposed to serious legal consequences. “How do you use a ‘common sense approach’ when you are required to do x, y and z regardless of what the situation may be?” he asked. “I can’t take that gray area and make the case in front of a jury. When you have drivers who rely on outside mirrors and lights on the dash to know when to move over, you can’t guess at how to fix the vehicle. I can’t say, ‘I looked at insurer A and adjuster A and considered a common sense approach.’ The attorney will say, ‘Mr. Dorn, what does the OEM say you have to do? Did you do it?’ The liability rests there.” At the Collision Industry Conference (CIC) held the following day, Emerging Technologies Committee Chairman Jack Rozint (Mitchell International) moderated a panel discussion on the topic of pre- and post-repair scanning. Participants included
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representatives from MSOs, scan tool companies, OEM vehicle manufacturers and representatives from Allstate and State Farm. Prior to the discussion, Rozint stated that
CIC Emerging Technologies Committee Chair Jack Rozint
ground rules prohibited discussions regarding compensation for performing scans, citing antitrust concerns and the makeup of the panel as the reason for this decision. Later during the Open Mic session, SCRS Executive Director Aaron Schulenburg opined that CIC was indeed one of “the right rooms” to have a discussion on how compensation is impacting the issue. “While we can’t necessarily talk about specific charges, that compensation issue is driving a lot of the tension,” he offered. “It’s an important thing for us as the industry to address…If it weren’t a compensation issue, I don’t think anybody would be debating the need to perform [scans] or the need not to perform [them]; we would all agree that [they] should just be done.”
Not surprisingly, the insurance industry’s current stand on the scanning compensation issue is murky at best. In early January, Chubb Insurance made headlines (first on Repairer Driven News - tinyurl.com/jxe6bkh) by going on record with the most extensive position on scanning to date (with the insurer’s original bold/italics included below for emphasis):
Chubb has decided that we are going to allow for pre and post scans on all ‘modern’ autos (1990 and Newer). Your first line on the estimate should read pre-scan at 1.0 hour of body rate and the last line on the estimate should read post-scan at 1.0 hours of body rate. If you find that the cost of doing the scan is going to be higher, then provide the actual scan report and the invoice and we will reimburse accordingly on the SUPPLEMENT. Chubb takes this very serious and wants to make sure the vehicle is returned in proper working order. However, in a follow-up story published by Repairer Driven News later in the month (tinyurl.com/hyfoejt), Chubb announced that the previous statement had been “sent prematurely,” adding that the company would handle pre-and post-repair scanning “on a case-by-case basis.” H&D
Executive Director’s Thoughts
When it comes to pre- and post-repair scanning, you’d think it would be straightforward when the OEM requires it that the insurer should be charged. But in the market, there is talk about gray areas. As Dorn pointed out, how can the liability that rests with the shop be gray? You either did it or you didn’t – and if you did, then why isn’t payment necessary as well?
- Jordan Hendler
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VISIT US AT NORTHEAST® BOOTH 406
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THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. For Original BMW Parts, contact one of these authorized BMW centers: BMW of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 Fax:410-349-2586 www.mybmwannapolis.com
BMW of Fairfax 2805 Old Lee Highway Fairfax, VA 22031 800-879-2269 Fax: 703-641-8562 www.bmwoffairfax.com
BMW of Alexandria 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 www.bmwofalexandria.com
Passport BMW 5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 www.passportbmw.com
Apple BMW of York 1370 Roosevelt Ave. York, PA 17404 800-839-1755 Fax: 717-843-2948 www.applebmwofyork.com
BMW of Sterling 21826 Pacific Blvd. Sterling, VA 20166 888-954-8222 Fax: 571-434-7727 www.bmwofsterling.com
BMW of Silver Spring 3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Direct: 301-890-3015 Fax: 301-890-3748 www.bmwofsilverspring.com
Northwest BMW 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 www.northwestbmw.com
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Original BMW Parts
www.bmwusa.com
The Ultimate Driving Machine®
They’re called “Original BMW Parts” for good reason. For uncompromising precision and incomparable quality, your BMW center is your One-Stop shop for everything BMW. BMW of Towson 700 Kenilworth Drive Towson, MD 21204 844-683-5251 Direct: 410-296-7908 Fax: 410-296-4852 www.bmwtowson.com BMW of Bel Air 716 Belair Road Bel Air, MD 21014 844-388-2058 Direct: 443-640-1230 Fax: 443-640-1234 www.bmwbelair.com
Richmond BMW 8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 E-mail: tdailey@crownauto.com www.richmond-bmw.com
BMW of Rockville 1450 Rockville Pike Rockville, MD 20852 844-896-0015 Direct: 301-468-3325 Fax: 301-770-4659 www.bmwrockville.com
BMW of Catonsville 6700 Baltimore National Pike Baltimore, MD 21228 855-996-2906 410-744-2000 Fax: 410-818-2600 www.bmwofcatonsville.com
March 2017
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NATIONAL
Critical info on non-included items.
NEWS SCRS ELEVATES SUPPORT
OF ESTIMATORS
As the Society of Collision Repair Specialists (SCRS) wraps up their first quarter of 2017, the national association is celebrating an extensive update of their popular Guide to Complete Repair Planning. Available free to the industry on the SCRS website (scrs.com), the Guide now lists more than 1,000 items that are potentially not included in the industry’s main estimating systems. The document was first conceived over a decade ago in an effort to help repair professionals write more complete estimates, and it initially grew through the input of dedicated industry members, including the late March Taylor, industry trainer Toby Chess (Kent Automotive) and countless other individuals. The document was first published by SCRS in 2011. Since its introduction, the Guide to Complete Repair Planning has been utilized by a number of companies as a training and promotional tool. As detailed by SCRS Executive Director Aaron Schulenburg at the association’s recent Open Board Meeting in Palm Springs, CA, companies like BASF, PPG and 3M have used the document in their estimating courses, while AkzoNobel distributed printed copies of it from their booth at last year’s SEMA Show with SCRS’ permission. “There are a lot of companies out there that are taking advantage of it. When we produce free resources like the Guide to Complete Repair Planning, our hope is that the industry takes them, carries them forward and gets them in front of everybody.” Responding to ongoing concerns expressed by SCRS member businesses, the association continues their work with Information Providers in addressing estimating system issues. One such example would be dialog surrounding the controversial CCC bumper prompt, which continues to generate concerns presented to the association. The CCC One product includes a prompt in their estimating system that inquires, “Will the bumper be refinished in a separate procedure from the other panels?” If the end-user replies, “No,” the system will apply overlap deduction on the next refinished panel and will include the bumper cover in the 2.5 clear coat cap. If the end-user replies, “Yes,” the system will identify the next refinished panel as the first major panel, without overlap deduction, and the bumper cover refinish labor will not be included in the 2.5 clear coat cap. It is SCRS’ position that if a flex additive is being utilized on plastic/flexible components and a separate clear coat mix is being produced as predominantly recommended by automotive refinish manufacturers, the appropriate response should be “Yes.” The prompt is repeatedly answered inaccurately on insurance appraisals, as the “No” selection will result in a lesser estimate value. “What we’re finding is that the misunderstanding extends not just to the insurer level, but even sometimes to the lower-level staff within the estimating system [provider] as well, where the instruction that is passed along on how to use it just isn’t factual,” noted Schulenburg in
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Palm Springs. “If this question is going to exist – and we still contend that it shouldn’t because it still goes against the processes that the refinish manufacturer recommends – it’s important to address how it can be clearer so that there isn’t this general degree of misunderstanding around the application.” In December 2015, SCRS published a special online PDF, Answering the CCC ONE Bumper Refinish Prompt, with a “decision tree” developed as a result of what the association called “frequent and widespread reports of misrepresentation of the refinish process when responding to the system-generated question.” The PDF document is available at tinyurl.com/gvulpza. To further demonstrate their commitment to the industry, SCRS recently launched the first in a series of new Education Committee videos scheduled for release throughout 2017. The 21-minute presentation, filmed in October at the SEMA Garage in Diamond Bar, CA, highlights a discussion panel on the adhesive joining technology in modern vehicles and considerations that collision repair facilities should be aware of when approaching damage repair in the aftermarket. The video features SCRS Board members Kye Yeung (European Motor Car Works), Michael Bradshaw (K&M Collision), Tim Ronak (AkzoNobel) and Education Committee member and the aforementioned Chess. The video can be viewed at tinyurl.com/ goo4g3w. In other news, SCRS will co-host (along with the Alliance of Automotive Service Providers of New Jersey) the East Coast Resolution Forum and Leadership Meeting at the 40th Annual NORTHEAST® Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ on March 17. For more information, visit aaspnjnortheast.com. For additional information on other upcoming SCRS events, visit scrs.com. H&D
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WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it. You want the best part for a Toyota, but you’ve got to know when and how much. Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”
ToyotaPartsAndService.com
©2014 Toyota Motor Sales, U.S.A., Inc.
For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Alexandria Toyota 3750 Jefferson Davis Highway Alexandria, VA 22305 Toll Free: 800-766-9767 Phone: 703-836-8476 Fax: 703-684-3468 www.alexandriatoyota.com
Antwerpen Toyota 12420 Auto Drive Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com
Koons Tysons Toyota 8610 Leesburg Pike Vienna, VA 22182 Phone: 703-790-8310 Fax: 703-356-9081 www.koons.com
Checkered Flag Toyota 5301 Virginia Beach Boulevard Virginia Beach, VA 23462 PH: 757-687-3443 FAX: 757-687-3437 www.checkeredflag.com
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Ourisman Fairfax Toyota 10441 Lee Highway Fairfax, VA 22030 Toll Free: 800-626-2236 Direct: 703-273-2236 Fax: 703-385-8411 fairfaxparts@ourismanva.com www.ourismanva.com
Younger Toyota 1935 Dual Highway Hagerstown, MD 21740 Phone: 800-296-1190 Fax: 301-733-5465
Koons Toyota Annapolis 1107 West Street Annapolis,MD 21401 Phone:(800)262-3330 Fax:(410)280-6361
dthompson@youngertoyota.com
roy.easter@koons.com
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Š 2017 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.
Diagnostically speaking, there is no substitute. Porsche technology. Porsche Genuine Service & Parts.
Contact one of these authorized dealers. Porsche of Rockville 1125 Rockville Pike Rockville, MD 301-296-2870 Fax 301-762-5055 rockville.porschedealer.com
Porsche of Arlington 3154 Jefferson Davis Highway Arlington, VA 703-684-8835 Fax 703-518-0467 arlington.porschedealer.com
Porsche Silver Spring 3141 Automobile Boulevard Silver Spring, MD 844-413-6929 Fax 301-890-3748 silverspring.porschedealer.com
Euroclassics Porsche 11900 Midlothian Turnpike Midlothian, VA 804-794-3399 Fax 804-794-9771 euroclassics.porschedealer.com
Porsche Towson 700 Kenilworth Drive Towson, MD 855-873-8619 Fax 410-296-4852 porschetowson.com
Checkered Flag Porsche 2865 Virginia Beach Boulevard Virginia Beach, VA 757-687-3483 Fax 757-687-3490 checkered-flag.porschedealer.com
March 2017
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A great night for a great cause.
NATIONAL
NEWS CIF RAISES BIG AGAIN AT 7TH ANNUAL GALA FUNDRAISER
The Collision Industry Foundation (CIF) recently held its seventh annual Gala Fundraiser in Palm Springs, CA. Continuing the wellknown tradition, the Foundation again hosted a cocktail party complete with delicious Asian fare, hors d’oeuvres and cocktails at the renowned Lulu California Bistro. Approximately 105 collision industry professionals attended the event, participating in a raffle and silent auction. Items were donated by companies and individuals and included high-end electronics, custom artwork, Chip Foose-signed pictures, pin stripe-painted pedal car bodies, a NASCAR package and I-CAR and AMI training classes. CIF was able to raise approximately $50,000 from the Gala. The foundation’s major focus has been the Collision Industry Relief Fund, which is used to help collision repair professionals who have lost their livelihoods from a natural disaster or other catastrophe. “Our sponsors continue to see the value of the Foundation and have supported us in excess of previous events,” CIF Trustee Casey
Left to right: Collision Industry Foundation members Casey Steffen, Petra Schroeder, Cheryl Boswell, Greg Horn, Jordan Hendler, Frank LaViola and President Bill Shaw
Steffen said. “They also continue to help spread the word of our effort and find those in need of assistance.” CIF’s vision is to bring awareness and emergency relief to collision repair professionals. If you know of someone in need, or if you would like to learn more about CIF’s current projects or donate at any time, please visit collisionindustryfoundation.org. H&D
Conquest your Mitsubishi parts needs!
Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems. Ultra-Conquest Collision Parts Program Highlights: • • • •
Discounted prices on quality new and unblemished OEM parts Automated price and part selection in collision estimating systems High parts availability Delivery to most major U.S. cities within 24 hours
• Available through all participating Northeastern area Mitsubishi dealers • Includes the majority of key collision components for select popular models • We can meet or beat aftermarket prices!
To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer. For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers. Fitzgerald Mitsubishi 1930 West Street Annapolis, MD 21401 Direct: 410-224-4636 Fax: 410-224-4264 E-mail: adamsf@fitzmall.com
Younger Mitsubishi 1945 Dual Highway Hagerstown, MD 21740 Direct: 800-296-1190 Fax: 301-733-5465 www.youngermitsubishi.com
Buy Genuine Mitsubishi Parts and get the perfect fit at the perfect price. 10% off on all parts orders when you mention this ad.
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Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138 e-mail: parts@alexandriavw.com
Karen Radley Volkswagen 14700 Jefferson Davis Hwy. Woodbridge, VA 22191 703-550-0205 Fax: 703-643-0081
Ourisman Volkswagen of Bethesda 5415 Butler Road Bethesda,MD 20816 301-652-2452 Fax: 301-652-2589
Checkered Flag Volkswagen 3025 Virginia Beach Blvd Virginia Beach, VA 23452 Parts Direct: 757-687-3465 757-490-1111 Fax: 757-687-3514
Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841
www.checkeredflag.com
e-mail: parts@fitzmall.com www.fitzparts.com
Ourisman Volkswagen of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Toll Free: 855-417-4511 Fax: 240-499-2488
King Volkswagen 979 North Frederick Ave. Gaithersburg, MD 20879 Parts Direct: 240-403-2300 Fax:240-403-2398
e-mail: rockvilleparts@ourismanautomotive.com www.ourismanvolkswagenofrockville.com
e-mail: parts@vwking.com www.vwking.com
Fitzgerald Volkswagen of Annapolis 34 Hudson Street Annapolis, MD 21401 Phone: 410-224-4636 Fax: 410-224-4264 www.fitzmall.com
Ourisman Volkswagen of Laurel 3371 Ft. Meade Rd. Laurel, MD 20724 Phone: 301-498-6050 Fax: 301-498-0157 www.laurelvolkswagen.com
e-mail: vwwholesale@ourisman.co
March 2017
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VISIT US AT NORTHEAST® BOOTH 335
PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment
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IF OFFERING ONLY ORIGINAL MINI PARTS IS A CRIME... THEN YEAH, WE’RE GUILTY. At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function.
For Original MINI parts, contact any of these authorized MINI dealers. MINI of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 fax: 410-349-2586
MINI of Baltimore County 720 Kenilworth Drive Towson, MD 21204 Toll Free: 844-635-4347 410-296-MINI (6464)
MINI of Sterling 21826 Pacific Blvd Sterling, VA 20166 888-954-8222 fax: 571-434-7727
MINI of Alexandria 5990 Duke Street Alexandria, VA 22304 703-461-6250 fax: 703-751-0595
MYMINIANNAPOLIS.COM
MINIOFSTERLING.COM
MINIBALTIMORE.COM
Crown MINI 8710 West Broad Street Richmond, VA 23294 Toll Free: 800-237-0130 804-527-6860 fax: 804-965-6254 CROWNMINI.COM
MINIOFALEXANDRIA.COM
© 2017 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
March 2017
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LOCAL
FEATURE COLLISION REPORTING CENTERS: ANOTHER POSSIBLE TRAP FOR SHOPS?
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Two thoughts typically come to mind when stopped for minor traffic infractions such as a broken taillight or exceeding the speed limit by a few miles per hour. The first: “This is *#@@#**#@!” The second: “Why aren’t the cops chasing real criminals?” Most police would question the first reaction but not the second. Take, for example, driving accidents where no one is hurt and property damage is slight. Police typically spend up to 45 minutes at the accident scene collecting information and another hour writing a report. It’s tedious work that has little to do with protecting the community. Small wonder that Howard Hall, the police chief of Roanoke County in southwestern Virginia, took interest several years back when he heard snippets of a revolutionary system in Canada for handling traffic accidents. In 2014, he got the details. At a Virginia Association of Chiefs of Police
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A new trend emerges.
BY TOM SLEAR
conference, Accident Support Services International talked about freeing police from the burden of preparing accident reports. The drivers bring their cars to “collision reporting centers” instead of the police going to accident scenes. ASSI takes care of the rest. Hall was impressed, particularly since ASSI, a Canadian company headquartered in Toronto, wasn’t spouting hypotheticals. They had a 20year track record in Canada. Most important to Hall was the bottom line. Like all other public servants tied to a budget, his major concern was: How much? The taxpayers wouldn’t pay a cent, he was told. ASSI would foot the entire bill for facilities, manpower, training, software…everything. Hall was tempted to dance the Macarena. Two years later, the first – and to this point, only – collision reporting center in the US opened in Roanoke as part of a pilot program that will last through 2017. Hall concedes that there have been some bugs with software compatibility, but they are minor and solvable. For the most part, he gives Roanoke Accident Support Service, ASSI’s local subsidiary, two thumbs up. But there’s a catch for body shops. ASSI makes its nut by billing insurance companies. What Hall views as nothing but a plus for his police department and the driving public could be another trap for collision repairers. “Any time there’s a directive of where a car goes, shops have less likelihood of a fair market,” says WMABA Executive Director Jordan Hendler. If Canada offers a model, Roanoke’s reporting center represents a gentle introduction to a system that will ultimately refashion how police in the US deal with vehicle accidents. The rules of Roanoke’s program require a police officer at every accident scene. However, if the cars are drivable and no one is hurt, the officer will send the drivers to the reporting center. (If there is an injury or if government vehicles, pedestrians or hazardous materials are involved, then the police will stay at the scene and complete a report no matter how minor the damage. Criminal activity, such as drunk driving or hit-and-run, also rule out the reporting center.) ASSI employees at the center will prepare the accident report and if the driver wishes, contact the insurance company. Five months into the pilot program, the center has written reports for roughly 100 accidents per month, which equates to an extra 500 police hours. Drivers have enjoyed the luxury of a one-stop process. They leave the reporting center with the accident report done and their insurance company notified. Insurance companies receive accident reports, including pictures of the damage, promptly. ASSI is paid by the insurance companies either per report or a flat rate over a specified period. At least there is a plausible case to be made for no steering taking place. ASSI’s dozen employees at the Roanoke center are local hires and have no professional relationship with any insurance company. Also, the rules of the program and Virginia law are unequivocal. “The only thing the center is allowed to do is provide information to the car owner’s insurance company,” Hall says. “They can’t make
recommendations of body shops. Posted in the reporting center is a notice of Virginia law that allows people to pick a [repair] center of their choice.” Excluding extenuating circumstances, drivers in Roanoke have 48 hours to show up at the reporting center with their damaged car. According to Ken Eagleson, ASSI’s vice president of US insurance programs, 50 percent have done so within four hours; 80 percent within 24 hours. Less than three percent have failed to show. Drivers don’t seem to mind this new way of doing things, or at least not so much to engage in any sort of civil disobedience. As for the police, “I don’t see any downside,” says Hall. The pilot program likely will expand in scope and spread to other areas. “Reporting centers make all sorts of sense,” says John Norris, executive director of the Collision Industry Information Assistance, a Canadian trade association with a membership of more than 300 body shops. “They will spread [in the US] like wildfire once the police realize they can save all of this money. I’m surprised it took [ASSI] 20 years.” More worrisome for shops is what happens when the experiment in Roanoke expands. In Toronto, where reporting centers have been around for two decades, police were dispatched last year to only 19 percent of the 70,000 vehicle accidents within city limits. Reporting centers handled the rest – some 56,000. The centers started out in Toronto in the mid-1990s just as the one has in Roanoke, but over the years the bar for using them has moved lower and lower. Current policy dictates that if a car is disabled, it gets towed to a reporting center. If drivers are injured, but not seriously enough to require an ambulance, they go to a reporting center. Meanwhile, police officers man the centers and prepare reports. (In Roanoke, police check the work of the ASSI employees.) Insurance representatives are also at the centers. The Roanoke reporting center will be involved with roughly 1,200 accidents throughout this year, hardly enough to get the insurance industry’s attention. That will certainly change when reporting centers catch on in major urban centers in the US and Toronto-like accident numbers begin to surface. “The collision industry has to get in on the ground level to make sure this is working fairly,” says Norris. “Shops have a lot of leverage. The police don’t want to be seen as recommending one shop over another.” H&D
Tom Slear is a freelance writer based in Annapolis, MD. He has written extensively about the collision repair industry over the last 30 years.
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Superior service starts with superior parts. Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life. Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you
Contact these Mazda dealers for all your parts needs: Brown’s Fairfax Mazda 10570 Lee Hwy. Fairfax, VA 22030 Toll Free: 800-234-8642 Phone: 703-385-3994 Fax: 703-591-5348
Nu Car Mazda 172 North Dupont Hwy. New Castle, DE 19720 Toll Free: 800-346-5283 Fax: 302-322-7135
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
Fitzgerald Mazda of Annapolis 1930 West Street Annapolis, MD 21401 Toll Free: 866-280-8022 Phone: 410-224-4636 Fax: 410-224-4264
Fitzgerald Mazda 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax 877-696-1841 E-mail parts@fitzmall.com www.fitzparts.com
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www.fitzmall.com
March 2017
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GENUINE NISSAN PARTS
MAKE ALL THE DIFFERENCE.
Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts. Contact these Nissan dealers for all your parts needs: Passport Nissan 5000 Auth Way Suitland, MD 20746 Phone: 301-423-6930 Fax: 301-423-2965
Sheehy Nissan of Manassas 9010 Liberia Ave Manassas, VA 20110 Toll Free: 800-969-4778 Local Direct: 703-361-0377 Fax: 703-361-5165 martinfisher@sheehy.com
For Genuine Subaru Body Parts, contact these Authorized Subaru Dealers. Wilkins Subaru 6913 Ritchie Hwy #2, Glen Burnie, MD 21061 410-689-8066 Fax: 410-689-8008 subparts@wilkinsautomotive.com www.wilkinssubaru.com
Fitzgerald Lakeforest Subaru 905 North Frederick Ave., Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
March 2017
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TECHNICAL
FEATURE THOUGHTS ON REKEYING ESTIMATES: PART 2 OF 2
In my article in last month’s issue (which you should have next to you as a reference as you read this one), I promised to provide a further discussion on the rekeying topic and offer a fix for your facility to stop working harder and start working smarter and more efficiently. Additionally, I said I would revisit the topic of photo estimating and explain why I thought this was a critical issue for our industry. Regarding the “fix,” this will work for both Scenario 1 for Supplement 1 (after rekeying) and/or for your initial damage report. After negotiating with the appraiser, using your damage report (S1 or initial), you discover that the appraiser did not address all the operations and items you are charging the customer for. So, you will now need to call, email or fax in a request for a supplement. (Scenario 1 would be S2, and Scenario 3 would be S1). Now, here is how to not rekey. In Scenario 1 or 3, you wrote an accurate damage report for the cost of repairs. For reasons we will not discuss, the appraiser did not reimburse the vehicle owner the full amount. So here are the steps to follow to not rekey: 1. Do not delete or write anything on your report. 2. Call for a supplement and do not delete or write anything on your report. 3. Call the vehicle owner to inform them of the supplement. (In some states, you are required to obtain permission from the vehicle owner to charge more than the original estimate and for each additional increase in price or additional supplement.) Do not delete or write
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March 2017
anything on your report 4. Continue with the repairs. There is no reason to stop; do not delete or write anything on your report. 5. When the appraiser arrives, hand them the original damage report you handed them the last time they were there. Now, the scenario will go a little something like this:
Larry = Damage Assessor John = Insurance Appraiser
John: “Hi, Larry. I am here on a supplement for Mr. Smith’s vehicle.” Larry: “Hi, John. Sure, I have the paperwork right here.” Now, Larry hands John the original damage report. John quickly flips through
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Tips for real-world success.
the pages and looks perplexed. John: “Larry, this is the original paperwork you gave me last time. There are no S1s.” Larry: “Yes, John. It is the same paperwork from the last time. Nothing has changed on repair methodologies or the costs and, well, you forgot some things the last time. You will need to add them now.” John: “Like what? I don’t see any S1s.” Larry: “John, I wrote an accurate cost of repairs for $8,134.56, and you wrote $5,478.21. That is a difference of $2,656.35.” John: “Larry, I can do math, but what is the supplement for?” Larry: “Glad you asked, John. I wrote an accurate final invoice for the cost to properly repair the vehicle. John, you left off $2,656.35. Now, if this were a difference of only $100 to $200, I would be discussing those few items to make up that amount, but $2,600 is a significant amount.” John: “Whatever. But what is the supplement for? I do not know what it is for. How am I supposed to figure this out?” Larry: “John, please understand that the $2,600 is YOUR problem, not mine. As it is YOUR error, not mine, now YOU will need to go line by line. It is YOUR job, so do YOUR job and figure out what YOU left off the last time YOU were here. It is YOUR job to ensure the vehicle owner is fully reimbursed for the cost of repairs to restore their vehicle back to its pre-loss condition. So, please have a seat. If you would like coffee, it is over on that desk. You will be here for a while; if you have any questions, please ask.” John (staring and looking completely baffled): “I have never had anyone ask me or expect me to do this before.” Larry: “Well, if YOU like, we will do YOUR job for YOU and rekey the estimate for YOU to make YOUR job easier. We charge $25 to fill in the customer, vehicle and insurer information on the estimate. It is $1.50 per line to enter for rekeying, $25 to check that
the labor times and amounts are equal, $35 to enter all supplement charges, $5 per line for descriptive reasons for the operation in the notes and a $10 printing charge. Let me know which way you would like to do this.”
How many estimates will you rekey now? How much will you have to spend on a thirdparty company to rekey the estimates for you? There is no law that requires you to rekey.
Photo Estimates In August 2014, Jeff Lange and I wrote an article on this, and I feel I need to revisit this topic again. Over the past few years, many of you have seen customers come into your facility with a third-party photo estimating company estimate, and two things are very apparent: 1. There is a definitive issue with the vehicles being significantly underwritten. The person taking the photos, their skill level and even the type of camera they’re using can affect the quality of those
BY LARRY MONTANEZ III, CDA
photos and what is being depicted in them. Photos often do not accurately reflect the extent of the damage; they can underrepresent the severity of deformities, gouges, scrapes and/or scratches, while some damages would not even be seen due to the angle, sunlight, etc. A scratch that appears like it could be buffed out may be too deep and require refinishing or may not even be seen in the photos. Additionally, without disassembly (which no consumer is going to attempt), no photograph will show hidden damage unless someone has an X-ray app. Another issue is the epidemic of uneducated and unqualified people writing damaged vehicles. Some in the industry (both insurance and repair facility personnel) cannot accurately and properly write a correct damage report with the vehicle in front of them, and you think someone can do this from photos alone? I have talked to many shops, and the estimates can be three to 10 times what
March 2017
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TECHNICAL FEATURE the original cost was. 2. There is an inherent major risk to the wellbeing of the vehicle operator and occupants. The problematic and dangerous issues that could arise to the vehicle operator and/or occupants is that most collision-damaged vehicles are not safe to drive, although they may in fact be drivable. In most collision events (although most are low-speed), there is
VISIT US AT NORTHEASTÂŽ BOOTH 100
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March 2017
often structural misalignment, suspension damage and deformed structural components that cannot be seen without disassembly and/or measuring. Operating the vehicle in this condition could put the vehicle operator, passenger and other vehicles on the roadway in a dangerous situation. For example, many times, a bumper fascia (cover), bumper reinforcement and front uni-rail can
become damaged, but the fascia shows little to no damage. This is because the fascia is ductile and may have returned to its original shape with only slight stress markings, scrapes and scratches visible. Another issue would be operating the vehicle with a Supplement Restraint System (SRS) Malfunction Indicator Lamp (MIL) illuminated. Some vehicles will set an MIL in a low-speed collision event because the passenger Occupant Weight System/Occupant Presence System requires reweighing and sensitivity testing. This basically means that the passenger airbag may not deploy when intended or may deploy when not intended. If a small child or a baby in the rear-facing child seat were sitting in the front passenger seat, the airbag could deploy in a subsequent event because the OWS is not accurately measuring the weight in the seat. What type of injury could that child sustain? Most vehicle systems will not illuminate an MIL, and the system may not operate as intended. The driveability and performance of the vehicle may cause a system shut-down, stranding the occupants (which may be a dangerous situation).
So, who is gaining an advantage in this process by saving time and money? The consumer, you...or the insurance company? Well, consumers sometimes believe whatever they hear. Do regulations support complete truth in advertising? Unfortunately, no. Until a claim is issued, they can say whatever sounds good on television and in print advertisements. Once in the hands of claims personnel, however, things can change. By using a photo estimating app, the insurance companies are betting the odds that many people will just keep the money and never have their vehicle repaired. They are also betting the odds that some shops will do the repairs for whatever price they are paid and/or are counting on a low-cost supplement. Remember that the insurance company saves time and money using a photo estimate app
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because they don’t have to pay an adjuster to come out and look at the vehicle at your shop. Where is the advantage to the shop or the consumer? The consumer’s best interests are served by getting their vehicle properly inspected by a professional at a reputable repair facility. I’m not saying that these collision repair estimate apps have no value at all. These third-party guesstimating apps and services should be used at the scene with the vehicle(s) involved. This would assist with the prevention of fraud involving the actual sustained damage and even with fraudulent injury claims. Maybe the photo app should have a video app option, too. Always remember the repair facilities’ number one concern is their liability and then the protection of their customer – the vehicle owner. Your contractual agreement is with the vehicle owner, and the insurance company has a contractual agreement with the vehicle owner or an obligation to a third-party claimant (if they accepted liability). I hope this article has shed some light on recent events in the industry. H&D
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Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.
Executive Director’s Thoughts Everyone strives to be more efficient, and understandably so. If the insurer can gain efficiency, they save money. Insert photo estimating. Not sure if you’ve ever had your insurance premium go down, but I haven’t. My assumption is that the liability of a policyholder still driving around a wrecked car without being sure it’s safe is a risk they are willing to take to save those bucks. Take that photo, then take the chance… - Jordan Hendler
March 2017
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COVER STORY
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Insights into practices and procedures.
BY NICK FERNANDES
he second half of the latest WMABA Labor Rate Survey did not report many significant changes since the previous year, but a few results are critical to the automotive repair industry. One of those results is the decline in insurers requiring shops to order parts from a specific vendor or online procurement system. Fifty percent of respondents said their insurers required them to do so – an 11 percent drop from last year. However, the association doubts that insurers have truly stepped back in this practice since the previous Survey. “The problem with the parts procurement systems is that they create an undue administrative burden on both the repairer and supplier,” WMABA Executive Director Jordan Hendler says. “That hasn’t changed. What’s changed is the industry acceptance of the practice. Like it or not, repairers and suppliers are still doing it, so insurers are still going to ask for it. The decrease may just be the respondents’ demographics, because we had far more participants this year over last.” Although it was already a common occurrence and referred to as “a joke in this industry” by Hendler, 100 percent of respondents noted that they received complaints from insurers that they were the only ones to charge for a service that they believe is legitimate, reasonable and necessary, a 16 percent jump from last year. “They have never provided facts to go along with that statement. Even worse, they’ll oftentimes use one terrible repairer as the go-to when the question ‘bluff’ gets called. There statistically cannot be only one repairer anywhere charging for something that is commonplace in the estimating systems for all repairers to charge. That’s a fact.” While it was not a major decrease from the previous survey, 6.1 percent less respondents experienced status update requests from rental car companies. WMABA does not consider this a drastic change, and it remains a standard procedure in the Washington Metropolitan area.
T
DO YOU BELIEVE THIS IS A REQUIRED OPERATION?
DO YOU CURRENTLY PERFORM THIS OPERATION?
“Tint” the color
94.34%
92.45%
“Materials” to tint the color
87.76%
89.80%
93.10%
93.10%
RESPONDENTS SHARE THEIR VIEWS ON STANDARD PROCEDURES
“Color, sand and buff” and/or denib surface blemishes
“Materials” needed to denib or buff a vehicle
92.45%
84.91%
To remove tape or painted stripes before refinishing
98.18%
90.91%
Feather, fill, block and prime on repaired panels
98.18%
90.91%
Feather, fill, block and prime on welded panels
98.15%
90.74%
98.15%
92.59%
“Mark-up” or “admin” on sublet (towing, upholstery, mechanical, pdr, etc.)
Disable and enable “interlock” devices to move vehicles
96.08%
76.47%
“Clips and fasteners” needed in the repair process
98.28%
93.10%
“Bagging” vehicle to “prime” and for “final refinish”
98.21%
89.29%
“Bag” opening to “prime” and for “final refinish”
98.04%
84.31%
“Bonding materials” in the repair process
98.18%
89.09%
“Undercoating,” installation and removal
96.30%
88.89%
“Structural foam,” installation and/or removal
98.11%
86.79%
“Check and test seat belts” being used in the accident
98.08%
82.69%
“Pressure test” cooling systems after front-end damage
98.00%
68.00%
“Prep raw plastic” when recommend by paint supplier
98.28%
89.66%
“Set up and pull” to access repairs
98.21%
89.66%
“Weld thru primer” and/or “cavity wax” when needed
98.18%
90.91%
Replacement of information labels, parts and labor
98.28%
91.38%
Removal and replacement of protective coatings
98.00%
90.00%
Reset memory functions (e.g., radio codes, sensors, etc.)
98.11%
83.02%
“Jig” rental when recommended by vehicle manufacturer
96.67%
70.00%
Repairing “weld burn, including grinding and prepping”
98.08%
78.85%
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11 percent drop
This year’s Survey saw an in the number of respondents who said that an insurer mandated a parts vendor or procurement system. What could this mean for the industry? HOW DO OUR SURVEY PARTICIPANTS FEEL ABOUT INSURER/SHOP RELATIONS? Do you believe insurers rate you on the use of alternative parts to OEM, such as used or aftermarket?
Do you feel many insurers try to control or insert themselves into the repair process, including selection of parts and repair methods used?
Do you have an insurer who requires you to order parts from a particular vendor or through a particular online procurement system?
Do you believe insurer reimbursement rates are fair to support adequate profit for continuing education, certifications and new equipment?
Would (or does) ordering parts or materials through a required third-party bidding system increase your cycle time and customer dissatisfaction?
Have you been told “you are the only one” who charges for what you feel is a legitimate, reasonable and necessary operation?
Do appraiser(s) tell you, “We can’t pay for that because it is against insurance company policy,” even though you knew it was a fair, reasonable and necessary item?
Yes
90.90%
No
9.10%
96.40%
3.60%
50.00%
50.00%
9.10%
90.90%
62.00%
38.00%
100.00%
0.00%
92.60%
7.40%
Do you feel that after an insurer is notified, that two business days is an adequate time frame for an insurer to come to your shop to inspect, appraise the damage and provide an estimate? 85.50%
14.50%
87.00%
13.00%
94.50%
5.50%
92.60%
7.40%
66.70%
33.30%
88.90%
11.10%
Is it your experience that a good portion of insurance company representatives will intentionally write “low ball” estimates that omit obvious visible damage? Do inadequate or poorly written estimates by insurance company representatives delay the repair process and cost your shop time and money while you rectify mistakes?
Do you feel appraisers intentionally omit vital processes in hopes the shop will not correct and amend the mistake, giving the insurer unfair financial gain?
Have you feared retribution from insurers if you charged for a job performed that you feel is fair, reasonable and necessary, but they may not approve of? Do you feel insurers are using their “power,” together with a weak economy, in an attempt to coerce shops into accepting less than a fair amount?
Have you experienced an insurer(s) who has declared a vehicle a total loss when you felt the vehicle was an easy, safe repair and the vehicle owner wanted it repaired, but did so because the insurer got a high salvage value?
Do you experience insurers retaining payment, but tell you that you are “holding the car hostage” when they had more than adequate time to issue payment?
Do you feel many insurers’ initial estimates lack proper repair procedures necessary to fix the car to pre-accident condition?
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March 2017
76.40%
23.60%
74.50%
25.50%
92.60%
7.40%
Have you been told you were “the only one” who charged for something you thought was fair and reasonable?
APPARENTLY, YOU’RE
NOT ALONE.
SURVEY TAKERS REVIEW A NUMBER OF QUESTIONS THAT RELATE TO THEIR DAILY BUSINESS. Is it your experience that blending a panel takes as long, or longer, than refinishing a new undamaged panel?
Does it take more skill and materials to “blend” a panel versus refinish a full panel?
Is “clean up” time necessary on most “LKQ” or used parts? Can you blend or melt clear coat within a panel and give a lifetime warranty?
Is it necessary to pre-clean most vehicles prior to entering the shop?
Given the advancements in system compatibility, should you have the freedom of choice for your estimating system provider?
Yes
94.50%
5.50%
98.20%
1.80%
98.20%
1.80%
12.70%
87.30%
83.30%
16.70%
100.00% 0.00%
Do used structural parts (e.g., quarter panel, hinge pillar, rocker panel, radiator support and apron or frame rails) take more “trim” time than new parts? 100.0%
Do you feel that modern vehicles (with boron steel, structural aluminum, multiple airbags, collision avoidance systems, laser welds, etc.) are more difficult to work on than older vehicles without those similar characteristics? 96.40%
Do you feel colors on newer vehicles are more difficult to match than those 5-10 years older?
79.60%
Do rental car companies unnecessarily contact you about the status of vehicle repairs, requesting numerous status reports and completion dates? 85.50% Would you prefer an itemized calculator for materials based on a computer software program (e.g., PaintEx, PMCLogic, etc.) versus compensation based on current random multipliers using an hourly rate? Have you been able to provide across-the-board increases in the pay and benefits of your employees in the past five (5) years?
No
0.00%
3.60% 20.40% 14.50%
67.30%
32.70%
17.00%
83.00%
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“Usually, the number of communications back and forth is driven by the insurance relationship for the length of rental information. If a repairer is inside or outside the market number, then they may receive that additional touch. It’s an important number to the insurance representatives and whether or not a shop is performing within a program.” After five years of Labor Rate Surveys, Hendler believes it continues to show that the industry is barely surviving and gives repairers an accurate cost amount. “The Labor Rate is the basis of all shop profit calculations and whether or not they invest in people, equipment, training and more, let alone advance their own take-home pay. Those repairers who are striving to grow and build are affected by those who are not, and this is the bottom line of this Survey. It’s important that repairers know their true costs of doing business, researching how to calculate a Labor Rate based on all those factors, and include making the profit to continue to reinvest. That’s how the decision of a rate should be determined, not accepting a number that is generally not based on any statistical data other than the lowest possible figure given by the lowest repairer in the market. Who wants to be compared to that repairer on any level?” WMABA uses the Survey to gather information about the automotive repair industry and address any issues it brings.
“Our association strives to understand and gather information about the industry we serve. This Survey is another tool for us to not only understand the marketplace, but to attempt addressing these issues at the governmental or regulatory levels with factual data. Most of all, we want all repairers to be armed with information that serves their business decisions.” H&D
WHAT ARE YOUR THOUGHTS ON THE SURVEY RESULTS?
DO THEY REPRESENT WHAT’S GOING ON AT YOUR BUSINESS?
Let us know what you think. Contact WMABA Executive Director Jordan Hendler at (804) 789-9649 / jordanhendler@wmaba.com and/or Hammer & Dolly Editorial Director Joel Gausten at (973) 600-9288 / joel@grecopublishing.com
WHICH BENEFITS DO RESPONDING BUSINESS OWNERS PAY FOR? Health Insurance Dental Insurance Vision Insurance Long-term Disability Life Insurance Paid sick leave (after a set period) Paid vacation (after a set period) Personal leave (after a set period) 401K or retirement program Performance Bonus Yearly cost of living increase(s)
Yes, fully paid 7.41% 9.26% 7.40% 11.33% 13.21% 57.41% 85.19% 50.00% 20.37% 37.04% 3.70%
Yes, partially paid 59.26% 37.04% 37.04% 15.09% 20.75% 14.81% 14.81% 15.38% 35.19% 18.52% 7.41% March 2017
No 33.33% 53.70% 55.56% 73.58% 66.04% 27.78% 0.00% 34.62% 44.44% 44.44% 88.89% 47
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Mark Schaech, Jr.
(410) 358-5155 mark@marksbodyshop.com
PRESIDENT’S
MESSAGE MOVING AHEAD THE RIGHT WAY Am I the only one who is amazed that it’s already March? Before we know it, we’ll be looking back at another year in this challenging and demanding industry and hoping we made the right decisions for our businesses and employees. It is my hope that when December rolls around, I will be able to say that I stepped up my efforts to gain as much new knowledge about this profession as I possibly could. Finding time to get educated isn’t always easy, but it sure is empowering. Set time aside to read industry news in Hammer & Dolly and Repairer Driven News. It is important to follow what is going on nationally, because what happens today in a place like California will likely hit us here at home sooner or later. Above all, I urge you to get involved in WMABA and talk with our Board members; we are here to help. Bring issues that affect you to our attention, and work with us to solve them. Join a 20 Group through your paint manufacturer, and meet with similarly sized shops to compare numbers and benchmark yourself. Hire a
consultant; there are people out here who can help you plan and implement profitable business strategies while ensuring proper and safe repairs. Leaders like Mike Anderson, Barrett Smith and Larry Montanez immediately come to mind. Reach out to them; they are full of knowledge and really care about making this industry better. 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: __________________________________ 48
March 2017
HD0317.qxp_Layout 1 2/15/17 8:12 PM Page 49
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49
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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
I joined WMABA many years ago during a time of transition for the association. The benefits and resources that I’ve had at my fingertips as a member are nearly impossible to list. WMABA gave me a voice when no one would listen, and they have given me technical information, management training, technician training and – most importantly – a network of people who are in the trenches like me on a daily basis. The resolve and tenacity of the association to create an environment conducive to properly repairing vehicles and maintaining a profit are immeasurable. I consider many who are part of this association to be my friends, confidants and professional family. I could sing their praises all day long. If you don't belong to WMABA, you're missing the boat. - Don Beaver, Antwerpen Collision Center, Clarksville, MD
50
March 2017
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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VISIT US AT NORTHEAST® BOOTH 108
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ADVERTISERS’ INDEX
TECHNICIAN APPROVED. OEM APPROVED.
Alexandria Toyota ................................43 AkzoNobel ..........................................11
Audi Group ..........................................15
Axalta Coating Systems ......................IFC BASF ..................................................7
BMW Group ........................................26-27 BMW of Fairfax....................................3
CAPA ..................................................20 Chesapeake Automotive Equipment ..54 Crashmax Equipment ..........................51
DJS Fabrications ................................23
Empire Auto Parts................................43 Ford Group ..........................................17 Future Cure ........................................42
Chesapeake Automotive Equipment “Sales, Service, Parts” pjmoneill@verizon.net Phone: 1-800-604-9653 All info Copyright © Pro Spot International, Inc. 2017
GM Parts Group ..................................9
Heritage Collision Center ....................4
Honda Group ......................................19
Honda ProFirst ....................................IBC Hyundai Group ....................................21
Koons Ford ..........................................51 Malloy Hyundai ....................................6
Mazda Group ......................................38 MINI Group ..........................................35 Mitsubishi Group..................................32 Mopar Group ........................................16
Nissan Group ......................................39 Nucar ..................................................25 O’Donnell Honda ................................54
Packer Norris Parts ............................29 P&L Consultants ..................................41 Polyvance ............................................52
Porsche Group ....................................31
PPG ....................................................OBC Reliable Automotive Equipment ..........34
Safety Regulations ..............................49 Subaru Group ......................................39 Toyota Group ......................................30 VW Group............................................33 Wheel Collision Center ........................49
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VISIT US AT NORTHEAST® BOOTH 734