Hammer & Dolly April 2015

Page 1

HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 1

April 2015 Volume 9, No. 4 $5.95

www.wmaba.com

ALSO THIS ISSUE CNN REPORT SPURS INTER-INDUSTRY DEBATE WMABA MEMBERSHIP PROMOTION: GET YOUR QUARTER BACK

www.grecopublishing.com


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 2


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 3

April 2015

3


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 4


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 5

CONTENTS APRIL 2015 32 COVER STORY JOINING THE CONVERSATION: NEW MEMBERS SHARE ALL

Recent additions to the association tell us what’s on their minds.

BY JOEL GAUSTEN

LOCAL NEWS 14 WIN CONVENTION COMING TO BALTIMORE

Industry legend Mike Anderson joins the list of noteworthy speakers and events.

NATIONAL NEWS 18 CNN REPORT SPURS INTER-INDUSTRY DEBATE, Politicians and industry leaders react to Anderson Cooper 360°. BY JOEL GAUSTEN

CALL FOR DOJ ACTION

DEPARTMENTS 6 10 12

LEGAL PERSPECTIVE 22 ARE YOU DOING ENOUGH TO PROTECT YOUR

15

CUSTOMERS’ PERSONAL INFORMATION?

Words of wisdom in an era of cyber hacking.

24

VENDOR CORNER 28 THE ABCs OF PPE

Being careful means having the right Personal Protection Equipment.

37

BY JOSEPH J. KENNY, II

44

45

FEATURE 38 PAINT & MATERIALS: A PATH TO PROFITABILITY Food for thought on how to make more money from the shop floor. BY TED WILLIAMS, BUSINESS CONSULTING MANAGER, SHERWIN-WILLIAMS AUTOMOTIVE FINISHES

Editor’s Message JOEL GAUSTEN

Executive Director’s Message JORDAN HENDLER JERRY DALTON MEMORIAL EDUCATION FUND

WMABA’s student scholarship application to cultivate the future of the auto repair industry.

BY WHITNEY CLEAVER SMITH

IN YOUR COLLISION CENTER

Calendar of Events

50

Technician of the Month: Steve Mooreland JACQUELYN BAUMAN WMABA Membership Application President’s Message DON BEAVER

WMABA Board of Directors

Advertisers’ Index

Images © www.istockphoto.com

April 2015

5


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 6

CALENDAR OF

EVENTS

April 15, 2015

April 27, 2015

N T Auto Body Inc., Alexandria, VA

SION REPAIR PROCESS

SUSPENSION SYSTEMS

First Team Toyota, Chesapeake, VA

CLASS LISTINGS

April 16, 2015

April 30, 2015

FULL-FRAME PARTIAL REPLACEMENT

Radley Chevrolet, Fredericksburg, VA

Coxton’s Gold Team Collision Center, Yorktown, VA

FULL-FRAME PARTIAL REPLACEMENT

Kunkel’s, Baltimore, MD

April 2, 2015

Refinish Solutions, Springfield, VA

Coxton’s Gold Team Collision Center, Yorktown, VA

ADHESIVE BONDING

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT SQUEEZE-TYPE RESISTANCE SPOT WELDING

April 6, 2015

Frederick Co. Career & Tech, Frederick, MD

First Team Toyota, Chesapeake, VA

Coxton’s Gold Team Collision Center, Yorktown, VA

PLASTIC & COMPOSITE REPAIR

April 7, 2015

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA CORROSION PROTECTION

Coxton’s Gold Team Collision Center, Yorktown, VA

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

State Farm Silver Spring, Silver Spring, MD

April 8, 2015

OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE

STRUCTURAL STRAIGHTENING STEEL

May 4, 2015

AUTOMOTIVE FOAMS

First Team Toyota, Chesapeake, VA

COLLISION REPAIR PROCESS

May 5, 2015

WELDED & ADHESIVELY BONDED PANEL REPLACEMENT

SAFETY

Southern Collision Center, Chesapeake, VA MEASURING

Refinish Solutions, Springfield, VA

April 20, 2015

VEHICLE TECHNOLOGY & TRENDS 2015

First Team Toyota, Chesapeake, VA

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH Criswell Collision Center, Annapolis, MD

ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS

State Farm Silver Spring, Silver Spring, MD

May 6, 2015

CORROSION PROTECTION

Delcastle VoTech, Wilmington, DE

May 7, 2015

N T Auto Body Inc., Alexandria, VA

April 21, 2015

Coxton’s Gold Team Collision Center, Yorktown, VA

Coxton’s Gold Team Collision Center, Yorktown, VA

COLLISION REPAIR PROCESS

Keystone Linthicum, Linthicum, MD

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE Refinish Solutions, Springfield, VA

April 9, 2015

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Refinish Solutions, Springfield, VA

SQUEEZE-TYPE RESISTANCE SPOT WELDING

Automotive Collision Technologies, Randallstown, MD SUSPENSION SYSTEMS

Southern Collision Center, Chesapeake, VA

RECYCLED PARTS FOR COLLISION REPAIR Royal Collision, Richmond, VA

STEEL UNITIZED STRUCTURES, TECHNOLOGIES & REPAIR COLOR THEORY, MIXING TONERS & TINTING

May 11, 2015

Refinish Solutions, Springfield, VA

First Team Toyota, Chesapeake, VA

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

WATERBORNE PRODUCTS, SYSTEMS & APPLICATION

May 12, 2015

Refinish Solutions, Springfield, VA

Harrison Body Works, Richmond, VA

REPLACEMENT OF STEEL UNITIZED STRUCTURES

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

April 2015

Radley Chevrolet, Fredericksburg, VA

April 23, 2015

First Team Toyota, Chesapeake, VA

Canby Motors Collision Repair, Aberdeen, MD

Automotive Collision Technologies, Randallstown, MD

April 22, 2015

April 13, 2015

SQUEEZE-TYPE RESISTANCE SPOT WELDING

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

MEASURING

Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA

Rosner Collision Center, Fredericksburg, VA

April 14, 2015

VEHICLE TECHNOLOGY & TRENDS 2015

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY

STRUCTURAL STRAIGHTENING STEEL

FULL-FRAME PARTIAL REPLACEMENT

6

OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLI-

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS

Southern Collision Center, Chesapeake, VA

Frederick Co. Career & Tech, Frederick, MD

VEHICLE TECHNOLOGY & TRENDS 2015

King Volkswagen, Gaithersburg, MD

PLASTIC & COMPOSITE REPAIR

REPLACEMENT OF STEEL UNITIZED STRUCTURES Criswell Collision Center, Annapolis, MD AUTOMOTIVE FOAMS

Coxton’s Gold Team Collision Center, Yorktown, VA

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY Canby Motors Collision Repair, Aberdeen, MD


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 7

May 20, 2015 April 7, 2015 SCRS Annual Election, Crow ne Plaza Ravinia, Atlanta, GA For more information, visit www.scrs.com

April 8, 2015 Repairer Roundtable/SCRS Corporate Member and Indu stry Awards Luncheon Crowne Plaza Ravinia, Atlan ta, GA For more information, visit www.scrs.com

April 8-9, 2015 Collision Industry Conferen ce, Crowne Plaza Ravinia, Atlanta, GA For more information, visit www.ciclink.com

May 4-6, 2015 Women’s Industry Network (WIN) Conference, Baltimore Waterfront Marriott, Balti For more information, visit more, MD www.womensindustryne twork.com

Industry training opportunities and don't-miss events.

ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS

N T Auto Body Inc., Alexandria, VA SUSPENSION SYSTEMS

Delcastle VoTech, Wilmington, DE

May 21, 2015

ALTERNATIVE FUEL VEHICLE DAMAGE ANALYSIS & SAFETY Southern Collision Center, Chesapeake, VA ADHESIVE BONDING

King Volkswagen, Gaithersburg, MD

2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Frederick Co. Career & Tech, Frederick, MD

May 26, 2015

2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Harrison Body Works, Richmond, VA SUSPENSION SYSTEMS

Criswell Collision Center, Annapolis, MD

May 13, 2015

ADHESIVE BONDING

N T Auto Body Inc., Alexandria, VA

STRUCTURAL STRAIGHTENING STEEL Delcastle VoTech, Wilmington, DE

PLASTIC & COMPOSITE REPAIR

May 27, 2015

CORROSION PROTECTION

Refinish Solutions, Springfield, VA

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

Refinish Solutions, Springfield, VA

May 14, 2015

FULL-FRAME PARTIAL REPLACEMENT

Frederick Co. Career & Tech, Frederick, MD

VEHICLE TECHNOLOGY & TRENDS 2015 Kunkel’s, Baltimore, MD ADHESIVE BONDING

Southern Collision Center, Chesapeake, VA

SECTIONING OF STEEL UNITIZED STRUCTURES

Refinish Solutions, Springfield, VA SUSPENSION SYSTEMS

Rosner Collision Center, Fredericksburg, VA

May 18, 2015

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY

First Team Toyota, Chesapeake, VA

May 19, 2015

COLOR THEORY, MIXING TONERS & TINTING Harrison Body Works, Richmond, VA ADHESIVE BONDING

Keystone Linthicum, Linthicum, MD

STEERING & SUSPENSION DAMAGE ANALYSIS Criswell Collision Center, Annapolis, MD

April 2015

7


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 8

8

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 9

April 2015

9


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 10

Joel Gausten

EDITOR’S

(973) 600-9288 tgpjoel@verizon.net

MESSAGE MISSION: MAINSTREAM

As a trade publication, Hammer & Dolly receives numerous emails and phone calls each month from concerned and/or upset members of the collision repair industry who are looking to share their frustration over the state of things in their shops. Every few months, I fly to a different city to attend the Collision Industry Conference (CIC), where members of the national scene come together to identify and confront issues impacting all industry stakeholders. Regionally, we at Hammer & Dolly see the same kind of venting at events hosted by WMABA throughout the year. In all of these instances, people are voicing concerns to their peers or members of the industry at-large. What is typically missing from these meetings – and what the industry has spent years trying to encourage – is the mainstream media’s interest and participation. But if the first quarter of 2015 has taught us anything, it is that the information wall between shops and the public they serve is finally starting to crumble. Regardless of your opinion of the accuracy of the recent Anderson Cooper 360° report on insurance practices in the auto body world, it is impossible to deny that many in this industry are feeling the subsequent shockwaves. As you’ll read on page 18 of this issue, the WMABA OFFICERS PRESIDENT

VICE PRESIDENT TREASURER SECRETARY

IMMEDIATE PAST PRESIDENT

Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155 John Krauss jkrauss@craftsmanautobody.com 703-534-1818 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928

BOARD OF DIRECTORS

Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Mark Boudreau (crashdaddy@aol.com) 703-671-2402 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140

ADMINISTRATION

RT Plate (rt@pcirepair.com) 703-929-8050 Phil Rice (phil@ricewoods.com) 540-846-6617

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

10

response to the piece has been immediate and dramatic – and will likely continue to escalate as the year carries on. Don’t be surprised if regional TV news affiliates in your area run similar stories in the weeks and months to come. With the motoring public becoming more educated on their rights – and being made more aware of the obstacles that sometimes stand in the way of a proper repair job – the days of confining industry-related discussions to conference rooms are over. Finally, the notorious tug of war between shops and insurers has officially been acknowledged for what it has truly been all along – a consumer issue. Now more than ever, shop owners and technicians need to consider their business decisions and repair procedures to ensure that drivers’ safety remains their greatest priority. If you know in your heart that you’re doing the right thing, then you have nothing to worry about. If you have doubts that your repairs measure up to industry standards, commit yourself to making changes today. With the way things are going these days, you just never know if or when you’ll face the lens of a TV camera. H&D

April 2015

STAFF

PUBLISHER DIRECTOR OF SALES EDITOR MANAGING EDITOR ART DIRECTOR OFFICE MANAGER

Thomas Greco thomas@grecopublishing.com

Alicia Figurelli alicia@grecopublishing.com

Joel Gausten tgpjoel@verizon.net

Jacquelyn Bauman jacquelyn@grecopublishing.com

Lea Velocci lea@grecopublishing.com

Donna Greco donna@grecopublishing.com

PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2015 Thomas Greco Publishing, Inc.


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 11

April 2015

11


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 12

EXECUTIVE DIRECTOR’S

MESSAGE

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

WHERE TO SPEND YOUR TIME

It has to be a breath of fresh air for repairers to have publicity of our issues on multiple media sites in recent history. It’s my opinion that we have a direct effect on customer satisfaction with the overall claim process, and that this “triangle” relationship is getting a closer look. Working to be a better example of professionalism and dedication to the craft has been panning out “gold” for those who take the initiative. A growing chasm is separating those who have stepped in and those who are dragging behind. A couple of stand-out areas? Marketing and Education.

A Little Bit - of Marketing - Can Go a Long Way Looking at the various marketing methods utilized by collision repairers of all sizes and types, I find that those who make an effort experience definitive returns on that investment. Large or small, shops who take the time to build an informative, navigable website, coupled with consumer info and community involvement, turn themselves into a repairer the public finds more trustworthy. But in order to be trustworthy, you need to be someone they can truly trust. Really determine who it is you model your business towards. If that is the car owners, then you need to brand yourself for them and their needs. If it is the insurers, then your marketing and branding would take a far different approach. An identity crisis can cause lasting headaches for all involved, so really take the time to understand your foundation. Then, you can build from there. Heading Back to “School” Drilling into the education realm, those who put forth the commitment see a shift in shop mentality on correctly repairing vehicles

12

April 2015

with quality and completeness in mind. This is done in two ways: repair education (such as I-CAR or ASE) and management or administrative education (such as ATI or with the association). Those of us in the education side of the industry are constantly trying to understand why many repairers have an allergic reaction to learning. Advancements in vehicle technology are leaving everyone in the dust. We can only hope to keep up. Sticking your head in the sand doesn’t make the problem go away, and it certainly will cause issues with your customers. Those with the culture of learning in their shop have made it part of their standard operation, and without question or negotiation. This benefits everyone. The side effect of having an uptick in morale with employees and

team-building are an added bonus. An employee who believes that his or her manager cares about him/her and continuing education is usually more productive and agreeable to betterment of the overall business. As an independent facility, you are more aware of incoming trends and the overall processes necessary to produce the results in efficient timeframes. For DRP shops, it can improve their carrier relationships by reductions in cycle time and re-repair. Either way, it’s a happier customer. And isn’t that what it’s all about? Get more! Give me a call! H&D

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


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 13

April 2015

13


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 14

Industry awards ceremony to reach the WMABA area.

LOCAL

NEWS WIN CONVENTION COMING TO BALTIMORE The Women’s Industry Network (WIN) is thrilled to announce that their ninth annual conference, themed “Create and Cultivate,” is being held May 4-6 at the beautiful Baltimore Waterfront Marriott. This special event will feature speakers and breakout sessions that will focus on opportunities for attendees to develop their own personal success stories through leadership, knowledge and relationships. The 2015 Educational Conference will feature speakers covering organizational culture, successful talent recruiting and time management. Additionally, WIN’s presentation of the Most Influential Women (MIW) awards will be held during the conference gala dinner, recognizing women who have been nominated by their peers as outstanding business and civic leaders. The 2015 WIN/MIW Scholarship winners will also be recognized, while the Annual Scholarship Walk will raise money for the WIN Scholarship fund. WMABA mainstay and legendary industry presenter Mike Anderson (CollisionAdvice) will be the keynote speaker at the 2015 Educational Conference. His keynote address, “Choosing Your Destiny,” will offer inspiration and guidance for creating a success story through self-determination and motivation.

“I’m honored to speak at WIN because I think it’s a really unique organization,” Anderson tells Hammer & Dolly. “At this point in my career, I just want to encourage people and let them know there is hope in the industry.” A former shop owner now working as a consultant, Anderson has consistently hired female employees throughout his career, with women often comprising the majority of his staff. WMABA Executive Director Jordan Hendler “I believe there’s a great opportunity for and her father, Jeff, after she received women in [this field],” he says, “Everybody is a "Most Influential Women in the Collision Intalking about the technician shortage [in the dustry" award at last year's ceremony. industry], but I think sometimes we have good candidates right in front of us. We’re just not looking.” With WIN nearing its 10th anniversary, WIN Board of Directors Chair Denise Casperson feels that the women are serving a greater-than-ever role in the ongoing health and success of the automotive community. “Women have historically been a vital element of the collision repair industry, from the co-ownership of family-owned collision repair businesses to the strategic minds of material vendors, the associates within rental car companies, the agents of insurance, the instructors of repair techniques and technology and the CEO of one of the world’s largest automobile manufacturers, General Motors,” she says. “WIN is excited to see the visibility and influence of women in the collision industry continue to increase and advance within all segments of collision repair.” Of course, one of the greatest moments of this upcoming WIN event will be the presentation of the Most Influential Women Awards. “The ‘Most Influential Women in the Collision Industry’ exemplify women who have enriched the industry with their leadership, vision, and commitment to excellence,” Casperson says. “The honorees have held positions in every facet of the collision repair industry. The program has recognized women for their professional accomplishments, but also for going beyond the requirements of their positions to give back to their communities. Since 1999, nearly 80 women, all recognized as leaders and meeting the criteria of Most Influential, have been recognized. In 2014, WMABA’s very own Jordan Hendler became a Most Influential Woman recipient. Beyond the areas [already mentioned], the common characteristic of all MIWs is the impacts they have made on the collision repair industry.” For more information, go to www.womensindustrynetwork.com and click on “Conference.” H&D

Executive Director’s Thoughts Industry consultant Mike Anderson will be this year’s keynote speaker.

14

April 2015

I would encourage anyone in our area to attend this meeting to gain some personal enrichment and network with peers in the industry. It is a great place for those in our industry to rub elbows, make friends and seek mentors. - Jordan Hendler


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 15

April 2015

15


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 16

16

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 17

April 2015

17


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 18

NATIONAL

NEWS CNN REPORT SPURS INTERINDUSTRY DEBATE, CALL FOR DOJ ACTION

18

April 2015

US Senator Richard Blumenthal (D-CT) takes his comments on the CNN report to the DOJ. 4,500 professional automotive recyclers across the United States and in 14 countries internationally” - sent Senator Blumenthal a letter expressing “serious concern” over his statements to Attorney General Holder and fiercely defended the automobile recycling industry’s ability to provide the motoring public with safe, dependable products. In addition to noting that the “reutilization of quality, OEM automotive parts” is a $32 billion business in the US, ARA CEO Michael Wilson stressed that professional automotive recyclers “have robust product assurance and quality control procedures in place to identify parts that do not meet industry accepted standards,” thus distinguishing their products from the “junkyard” parts detailed in the CNN segment. “What is missing in the CNN segment and in your comments is the recognition of the critical economic and environmental role that the recycled, original equipment manufacturer (OEM) parts sold by ARA member facilities play in the market,” he wrote to the Senator. “Their existence in the marketplace provides consumers an important alternative to expensive ‘new’ OEM parts. “It is critical for our nation’s policymakers to help consumers understand the different options in the automotive parts supply chain and the various market motivations that exist,” he added. “Armed with this knowledge, CNN viewers and others can be better informed and will understand that some body shops also engage in the practice of ‘steering’ consumers to utilize only brand new OEM parts instead of using more

Photo courtesy of www.blumenthal.senate.gov

Considering the explosive nature of the February 11 Anderson Cooper 360° investigation into allegations of steering and unsafe parts usage within the auto insurance industry (http://tinyurl.com/CNNCheapRepairs), it should come as no surprise that everyone from insurers to lawmakers have had something to say about it. In addition to being featured in the CNN broadcast, US Senator Richard Blumenthal (D-CT) sent a letter to Attorney General Eric Holder two days after the show aired, urging the Department of Justice (DOJ) to investigate the issues raised by CNN Investigative Correspondent Drew Griffin. “Contrary to what consumers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs,” Blumenthal wrote in the correspondence. “It seems to be common knowledge among auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, quality service, but by agreeing to charge below-market Labor Rates and use cheaper, salvaged, used or even counterfeit parts of questionable quality and safety.” On February 23, the Automotive Recyclers Association (ARA) - a group that “represents over


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 19

Reactions to the CNN report reach the government.

BY JOEL GAUSTEN

economical quality, recycled OEM parts - parts that are just as proper or even more appropriate for a particular repair.” In an effort to further demonstrate the appropriateness of quality recycled parts, Wilson noted that the West Virginia Supreme Court of Appeals recently “affirmed the use of salvage/recycled OEM crash parts in vehicle repairs, found that recycled parts are diametrically different from aftermarket parts and applauded automotive insurers for using measures to reduce premium costs for their customers.” Wilson made a similar argument late last year in a statement responding to Louisiana Attorney General James D. “Buddy” Caldwell’s use of the phrase “junkyard parts” when describing his high-profile lawsuit against State Farm (“Attorneys General Take On Steering, ‘Junkyard’ Parts,” H&D, January 2015). Although State Farm refused to grant CNN an interview for inclusion in the report, the insurer issued a statement to the network that “customers choose where their vehicles are going to be repaired,” and that the company provides “information about our Select Service program while at the same time making it clear they can select which shop will do the work.” Following the airing of the CNN piece, State Farm Spokesperson Dick Luedke said in a statement that the carrier was unhappy with Griffin’s coverage of the current 36-state suit launched by more than 500 body shops against multiple insurers across the US:

Executive Director’s Thoughts

It is great to see debates in our industry taking place in a more public atmosphere. Our industry has been quarreling in rooms like CIC for a long time, but to have media coverage for the consumer is a welcome change. There are problems here, and they have long needed to be addressed. - Jordan Hendler

We are disappointed that CNN did not choose to report what [the industry has] already reported, that all of the counts in the Multidistrict Litigation in Florida that are specific to the state of Florida have been dismissed twice, although the court has permitted the Florida plaintiffs a third chance to replead...We did make CNN aware of those rulings. H&D

April 2015

19


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 20

20

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 21

Contact these Ford or Lincoln Mercury dealers for all your parts needs: BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161 Phone: 410-689-3038 Fax: 410-766-1275 www.bobbell.com

PLAZA FORD 1701 BEL AIR RD, BEL AIR, MD 21014 Phone: 410-879-3367 Fax: 410-877-7248 www.plazaford.com

HAGERSTOWN FORD 1714 MASSEY BLVD,HAGERSTOWN, MD 21740 Phone: 800-200-0276 Fax: 301-733-0603 www.hagerstownford.com

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

TED BRITT FORD 11165 FAIRFAX BLVD, FAIRFAX, VA 22030 Phone: 703-673-2420 Fax: 703-870-7982 www.tedbrittparts.com

© 2014, Ford Motor Company

April 2015

21


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 22

LEGAL

PERSPECTIVE ARE YOU DOING ENOUGH TO PROTECT YOUR CUSTOMERS’ PERSONALINFORMATION? t seems like each week you hear a news story of a Fortune 500 corporation being hacked. Target, Home Depot and Apple are just three of a large number of companies who had their customers’ sensitive financial information hacked in 2014. As our reliance on technology grows larger, the more information businesses keep on computers and in the Cloud. This includes credit card numbers, social security numbers, addresses and other information that businesses need to function. However, it is not just customer information; businesses need employee information as well for payroll and tax purposes. Obviously, individuals or groups can be charged with criminal penalties for stealing information from these companies, but what about the companies themselves? Do they owe any duty to their customers to protect that information from hackers? The answer is yes. Under general principles of negligence, a business owes a level of care that a “reasonable person” in the position of the business would provide in protecting their customers’ information. What a “reasonable person” does is a little harder to define, but it is not from lack of trying on the part of the judicial system. One of the fastest areas of growth in class action lawsuits nationally right now is from commercial customers affected by large security breaches. In addition to common negligence claims, many states created specific causes of action that allow individuals who have had their information taken to be compensated for that breach. In Virginia, it is an unlawful invasion of a person’s privacy to look at personal information. In Maryland, invasion of privacy is a tort, which allows the victim to recover for any damage that it caused them. An employer must not only guard against hacks from outside sources to some reasonable extent, but they need to have safeguards in place to prevent employees from accessing personal information that they would not normally

I

22

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 23

What’s happening at the State House, in your industry and everywhere in between.

BY WHITNEY CLEAVER SMITH,

Attorney, The Law Offices of Alexander & Cleaver

have access to. If an employee steals the information of a customer or of another employee, the employer could potentially be liable if the company had no safeguard in place to avoid those types of breaches. A company that suffers a breach could also face government fines in addition to lawsuits from angry customers. The Federal Trade Commission states that individuals have an expectation that a company will take reasonable steps to protect customer information and if the company fails to take those steps, it could face fines. In addition, federal law requires that companies truncate the credit card information on receipts. Failure to do so could also result in fines. Most states, including Maryland, DC and Virginia, instituted laws requiring that companies report breaches in security to the affected customers. In Maryland, companies must take steps to reasonably protect customers’ sensitive information, conduct a prompt investigation upon evidence of a security breach and notify customers if the investigation shows a reasonable chance the data will be misused. Violation of these rules will be deemed to be unfair or deceptive trade practices under the Maryland Consumer Protection Act and could result in criminal penalties.

In Virginia, companies that reasonably believe that sensitive information has been accessed or acquired must notify the affected individuals as well as the Office of the Attorney General. In DC, companies must notify customers and consumer reporting agencies of any breach. Failure to comply with either of these statutes could result in fines. If you are concerned with the level of protection you currently have in place, please contact me at Alexander & Cleaver. My business/commercial law practice consists of corporate governance, employment and transactions, and I assist clients in forming new businesses and managing risk. H&D

Whitney Cleaver Smith focuses her practice in Alexander & Cleaver's Business Law and Estate Planning Practice Groups. In the Business Law Practice Group, she focuses her practice on corporate governance, employment and transactions. She has assisted clients in forming new businesses and managing risk.

For more information, please contact Whitney Cleaver Smith at wsmith@alexander-cleaver.com or (301) 292-3300.

April 2015

23


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 24

TECHNICIAN OF

THE MONTH

Hammer & Dolly chats with the WMABA community’s best and brightest.

BY JACQUELYN BAUMAN

STEVE MOORELAND Thomas Edison once said, “The three great essentials to achieve anything worthwhile are: Hard work, stick-to-itiveness and common sense.” At Advantage Collision Repair, Inc. in Portsmouth, VA, there is one technician for whom this is absolutely the truth. Steve Mooreland has been involved in the collision repair industry for almost longer than he can remember. Like many others in the field, the automotive repair bug bit him as a kid, when he would watch his father work on his own cars. At his high school, they offered an auto body collision repair course that was irresistible to Mooreland, and it was here that he created the foundation upon which he would later build his passion. Around 1980, Mooreland got a position at Churchland Auto Body, working his way through the ranks and learning everything he could about the collision repair process. In 2001, he got a call from an old colleague, Steve Benton, who offered him a position at Advantage Collision Repair, which is where he has been ever since. “In all of the years I’ve been doing this, I think my favorite thing about the job is the people,” Mooreland says. “Things have changed when it comes to the cars; they’re way more technical these days. That doesn’t make it less fun, but it does make it a little more difficult. But one thing that hasn’t changed is the enjoyment I get from coming in and being out on the lot or in the shop with the guys.” Even though Mooreland has put in over three decades in the industry, he still remains humble about his talents and his experience. “We have a lot of great technicians at the shop,” he explains. “I don’t know why, out of everyone, I was the one nominated for Technician of the Month, but it does feel good to get recognized after all of these years. I don’t know if I’m the best, but I definitely take pride in my work.” Even though life isn’t all about automotive repair for Mooreland, cars still do dominate even most of his down time.

24

April 2015

Steve Mooreland has spent nearly half of his more than 30-year career with Advantage Collision Center, Inc.

“When I’m not at the shop, I like to head to the local racetrack with friends,” he says. “And if I’m not there, I like to visit my friend’s farm out west and go four-wheeling, fishing, hunting and camping.” Based on his background in the field of collision repair, Mooreland has a lot to say to up-and-coming technicians who want to achieve the same level of success. “You have a to have a good disposition,” he states. “You have to be patient, and find ways to keep yourself interested in the field. Things are always changing, so you have to get some kind of formal training to stay ahead of the curve. But above all, enjoy what you do.” Mooreland believes he would not be where he is today without the help of many of the people he has come in contact with along the way, especially the owner of his first place of employment, Fred Bailey, and his current manager, Steve Benton, who nominated him for the recognition of Technician of the Month. He wishes to express his gratitude to both of them. H&D

If you would like to nominate someone as Technician of the Month, please contactHammer & Dolly Editor Joel Gausten at tgpjoel@verizon.net


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 25

April 2015

25


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 26

26

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 27

April 2015

27


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 28

VENDOR

CORNER THE ABCs OF PPE Since my last article regarding respirators (“The Importance of Respiratory Equipment,” H&D, December 2014), I have received a few emails with questions regarding other safety equipment, namely Personal Protective Equipment (PPE). The Ebola epidemic in West Africa (which, thankfully, seems to have subsided) and subsequent exposures here in the US made PPE a subject on everyone’s mind. Soon after, nursing organizations were voicing concerns about the lack of proper PPE provided – and the lack of training to use it. Just having PPE is not good enough. Without proper training, PPE can actually increase the hazard to the user. When it comes to PPE, there’s nothing worse than thinking you’re protected. OSHA’s PPE standard has several requirements: Hazard assessment, training and who pays for what. Compliance with the regulation requires you to understand and document each piece. Choosing the right PPE means knowing the hazard. A formal Hazard Assessment must be conducted (and re-evaluated annually) to determine hazardous tasks in the workplace and the correct PPE for each. Once you have identified a hazard, try to minimize or eliminate it so that PPE may not even be necessary. Choosing less harmful chemicals, providing adequate ventilation or enclosing the hazard are all effective strategies to achieve this goal. If elimination is not an option, the best source of information for selecting the right PPE, including respirators, is the product’s Safety Data Sheet. Using knowledge of their product and associated hazards, the manufacturer advises end-users on required safety equipment and safe exposure levels. For example, while safety glasses provide eye protection against some hazards, they would be useless for a task like welding. Employees must receive regular training about the proper use and care of their PPE. It’s critical that they understand the limitations as well. To be effective, Personal Protective Equipment, which is the last barrier between the user and a hazard, must actually be worn! Most injuries involving the eyes and

28

April 2015

hands could have been avoided simply by wearing the proper PPE. I recently met a technician who was wearing an eye patch. As a safety guy, I couldn’t resist asking him what happened. He told me he was wearing his safety glasses when a piece of steel flew off of his grinding wheel, but they were on top of his head! He added, “I don’t understand; I never had a problem before.” The most common question associated with this regulation is, “Who pays?” In 2008, OSHA clarified that the employer must pay for safety equipment necessary to protect employees. Good protective equipment is not cheap, but it’s a lot less expensive than a workers’ comp claim. Everyday work clothes and PPE that has been lost or destroyed by the employee are two notable exceptions to

A view from the supplier side of the industry.

BY JOSEPH J. KENNY, II

this rule. With all OSHA regulations, proper documentation is crucial. You must have a written PPE program with your company’s policies and procedures, a hazard assessment and records of training. I hope this information is useful in making your workplace safer. If you have any questions, give me a call. H&D Joseph J. Kenny, II is president of Safety Regulation Strategies, Inc., a nationwide safety and environmental training and consulting firm. He has helped thousands of businesses create safe and compliant workplaces, and can be reached at (800) 723-3734 or on the Web at www.SafetyRegulations.com.


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 29

April 2015

29


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 30

30

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 31

April 2015

31


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 32

COVER STORY

JOINING THE CONVERSATION: New Members Share All

32

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 33

A growth in members adds new voices to the cause.

BY JOEL GAUSTEN

Although the difficult winter that just (and finally!) passed and the various legal proceedings happening nationally received much of the attention in the auto body news world during the first quarter of 2015, another big story hit the WMABA region in recent months. Helped along greatly by WMABA’s recent efforts to bring new kinds of education to the region (including last December’s presentation at the Audi Learning Center in Ashburn, VA), the association is currently experiencing a surge of new memberships from area shops. This month, Hammer & Dolly offers an inside look into the wants, needs and expectations of two of these businesses – and why they have turned to WMABA for help. Whether you’ve just joined WMABA or have been with the group for decades, you will surely share in the hopes, obstacles, concerns and ambitions expressed in this feature. A New Life As any satisfied WMABA member will tell you, there’s much more to getting the most out of the association experience than simply sending in your dues once a year. Finding success in WMABA – and in the industry itself – means putting in the time and effort necessary to stay involved, educated and active. If you’re a large shop owner who thinks you’re simply too busy to do these things, you need to have a look at what new WMABA member Charles Bourne III (B&W Auto Body) is able to accomplish in a day. Since February 2012, the Charlottesville-based shop owner has attended more than 100 I-CAR classes, sometimes traveling up to four hours to be there. This feat is even more impressive when you consider that this 36-year industry veteran works out of a modest 2,500 square foot shop that can fit five cars on a good day. With nine years in business for himself, he currently utilizes a four-person full-time staff including his son Sheldon. Clearly, Bourne’s days are pretty full, so why would he add so much more to his plate by being so engaged in his industry? Because in Bourne’s world, it is a matter of life and death. In November 2011, Bourne was diagnosed with a potentially fatal illness and prepared his family for the worst. After a miraculous recovery, he found himself doing a lot of soul searching. It wasn’t long before his attention moved to changing his day-to-day work in his profession. “I realized that, at that point in my life, if I didn’t make some business decisions, I wouldn’t be around in business the next three to five years because of the way the auto body industry was going,” he says. By the following spring, he had taken his first I-CAR class since 2001 and hasn’t looked back since. “Most people don’t understand the importance of training and the information out there,” he says of I-CAR’s current offerings. “The information that I-CAR has given me has allowed me to write a stronger estimate and understand how vehicles need to be repaired and the tools

I need. If I had to recommend training for every shop, most likely I would say, ‘Let’s start with the estimators first so they know how the vehicle is repaired.’” Recently, Bourne added to his toolbox of knowledge in a huge way by joining WMABA – the latest step in his meaningful journey to becoming the strongest industry professional he can be. “The association is really trying to empower the shop owners, but also the legislation they’ve tried to get through is really impressive,” he says. “I try to support what’s going on.” Bourne's dedication to WMABA is in line with his ongoing commitment to bettering his life. A military vet and high school dropout, he hired a tutor to help him get his GED in 1996 after he learned that he read and wrote at a third-grade level. Ever since his business was established, he has used it as a way to help his fellow man and maintain his firm Christian values and faith in God. “B&W Auto Body does a lot more than fix cars,” he says. “People donate cars to us, and we repair them and give them away. We also sponsor mission trips to Liberia in West Africa, where I go on a regular basis.” Looking ahead, Bourne is hopeful that WMABA will focus its energy to fighting perhaps the biggest collision repair industry issue of all: steering. Unsurprisingly, Bourne’s shop size makes him particularly susceptible to the trend. “As a small, independent repair facility, you are competing against the DRPs whether you want to accept that or not,” he says. “A customer makes that 800 call upfront to report your claim, and if that consumer doesn’t know what’s going on, it doesn’t matter how many times you’ve repaired their vehicle in the past - they will be steered.” In one of the most outrageous examples of steering ever documented in Hammer & Dolly, Bourne says that the daughter of the previous owner of his shop was steered away from her own family’s business by the insurance company. When it comes to pushing customers to use April 2015

33


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 34

COVER STORY their facilities, insurance companies will apparently stop at nothing to reach their objectives. “An older lady at our church was told that she had to take her Prius to the dealer because it was a hybrid,” he shares. “That’s what I’m up against. It’s a challenge to get the word out to my customer base that they have a choice.” Despite experiencing these all-too-common obstacles, Bourne is finding success – and considerable recognition – in his field. A car enthusiast who painted his first car at 11, he was the proud recipient of a DuPont/ASE Master Refinish Technician of the Year Award in 2012. Additionally, his son Sheldon is proud to have earned I-CAR Platinum status. After so many years in the business, Bourne is enjoying his best times in the here and now. There’s just one more thing Hammer & Dolly needed to ask: How did he come up with the name “B&W Auto Body”? “It’s the reason I go to work every day,” he reveals. “Seven boys and one wife!”

Preparing for the Future Like Bourne’s operation, D&V Autobody in Dulles, VA is a true family affair. Founded in 1986 by Dave and Vena Maharaj, the shop currently operates under the guidance of their sons, Kevin and Ron, with their daughter, Jenna, handling the administrative side of things. Although D&V currently stands as an 18,000-square-foot facility (including a 2,500-square-foot office) with 51 employees, the business certainly didn’t start out that way. “It could not be more of a mom-and-pop situation,” says Kevin of the family’s original 5,000-square-foot shop in Chantilly. “We literally were behind my parents’ home for the first 20 years of the business. The area that we were in was zoned both residentially and commercially, so it allowed a mixed use.” By 2006, the business’ success and popularity in the area necessitated a move to their current location, a great spot in the Dulles Airport area that offers fantastic road frontage. One year shy of their 10th anniversary in their state-of-the-art facility, the Maharaj family continues to reach new heights in the industry thanks to an unwavering focus on customer service, high quality standards and efficiency. “In our opinion, the primary factor is the customer service,” he explains. “There’s no question that quality is expected; what’s not expected in our industry is any level of customer service. Unfortunately, we don’t

34

April 2015

have a knack for customer service in general [in our industry]. Early on in the game, we all just had a collective choice to make to serve our customers the way that we would expect to be served at any place – whether it’s a fine restaurant or the grocery store. We wanted to extend [a high level of service] to our customers.” Recently, D&V Autobody began an exciting new chapter in their celebrated history by joining WMABA. As the shop continues to develop new strategies to survive and prosper today and in the years to come, Kevin believes that the association serves as a fantastic way to gather important knowledge and put it to use. “I was looking for ways to further our means of business development and communicating with an outside influence,” he says of becoming a part of the WMABA community. “I need to be immersed in something that’s larger than us.” Of course, there couldn’t have been a better time for D&V to join. With everything from aluminum and carbon fiber to increased specialized training and certifying entities like the Assured Performance Network changing how shops are run, Kevin is thrilled to be a part of “a governing body that’s going to be willing and able to help us get over some of the hurdles.” Additionally, he says that the association is “doing a great job of bringing the shortcomings of our industry to the forefront” by helping members become better technicians, owners and managers through training. Now that his family’s long-running shop is under the WMABA umbrella, what is Kevin’s greatest expectation as a member? “My expectation moving ahead would be to have someone I can rely on - someone I could lean on for legislation in terms of helping small independents who do not have deep pockets like dealership-based body shops,” he replies. “Basically, [I want] someone to speak up for the little guy.” As more and more shops throughout the region are discovering, WMABA is a way for repair professionals to get the answers and direction they need to maneuver the changes constantly occurring around them. With 2015 far from over, the association looks forward to welcoming many more new members (both shops and vendors) wiling to join the effort to secure the best possible future for the collision repair industry. More information on membership (including how to join at a reduced rate) is available on page 37. H&D


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 35

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. Jerry’s Mitsubishi

Fitzgerald Mitsubishi

Younger Mitsubishi

Malloy Mitsubishi

1906 East Joppa Road

1930 West Street

1945 Dual Highway

14655 Jefferson Davis Hwy

Baltimore, MD 21234

Annapolis, MD 21401

Hagerstown, MD 21740

Woodbridge, VA 22191

Toll Free: 800-255-0691

Direct: 410-224-4636

Direct: 800-296-1190

Direct: 703-490-8263

Direct: 410-668-2119

Fax: 410-224-4264

Fax: 301-733-5465

Toll Free: 888-533-3400

Fax: 410-513-0236

E-mail: adamsf@fitzmall.com

www.youngermitsubishi.com

Fax: 703-490-3864

www.jerrysmitsubishi.com

hmkparts@aol.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.

April 2015

35


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 36

WHAT’S

The Playbook

UP TO? WMABA MEMBERSHIP PROMOTION:

GET YOUR QUARTER BACK

There has not been a better opportunity to join WMABA in the past 10 years than right now. For the first quarter of 2015, the association is offering a special membership promotion for new members. If you’re reading this, your first benefit is already being realized: Staying up on the news in our area and beyond. You can save $200 off an annual membership ($700 regular price) or get one free quarter (a $195 value) with the first quarter payment. Savings like this have not been available in more than a decade!

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 of the places the Board or executive director goes. 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 of WMABA’s agenda. Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team.

The association is your resource for all things. 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 national relationships, we are able to take issues to the foreground of places such as the Society of Collision Repair Specialists, Collision Industry Conference or to national contacts for insurers and vendors. Locally, we research government regulations and oversight to make sure the repair industry is protected from 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 that the association provides for navigating situations that arise. A simple phone call or email can circumvent many of our members’ issues.

Call the Game

As a member, you decide your personal level of participation. Do you have an interest in committees that address particular issues about which you feel passionately? Would you want to be a Board member and assist in guiding the direction of the association? How about even sitting on the sidelines so you can focus on your own business? A positive answer to any of these questions is what we’re looking for! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved. H&D

Get Educated

WMABA offers issue-specific topic-driven education throughout the year. Participation in special events, such as the December 10 limited-seating seminar and tour at the Audi Training Center, offer your business the best opportunities to advance your understanding of changes within our industry.

MEMBER TESTIMONIALS

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

36

April 2015

Find more association updates at www.wmaba.com.

The minimum is getting your membership. The upcoming year can start off with your commitment to the betterment of your business and your industry. SIGN UP TODAY!

One Quarter Free!

Save $200 Off Annual Membership or get

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


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 37

April 2015

37


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 38

FEATURE

PAINT AND MATERIALS: A Path to Profitability in Your Collision Center Successful collision centers have a constant focus on efficiency and gross profit improvement. Gone are the days where profitability could co-exist with waste in a facility. Today, a collision center is required to focus on continuous process improvement in order to develop their business. Some of these focus areas include a 100-percent accurate repair analysis, part correctness, express repair and segmentation of labor. Considering all of the potential areas for improvement in your collision center, why would you not first consider a fresh look at paint and material profitability? Here are some benefits to doing so: The shop has direct control over the items that impact paint and material profitability. The process around paint and material profitability teaches the shop lean principles. The shop can quickly see and measure the results of their efforts.

Let’s start with understanding where your results currently stand. To truly benchmark your results, you should consider adding all associated products used in the vehicle repair such as fillers, abrasives and tapes to the paint purchases. The reason for this is that insurance reimbursement is calculated on paint labor hours. This is the main source of reimbursement for all of the supplies used on the vehicle. Not including these items gives the shop a false sense of profitability. Exceptions to the list of associated products to be calculated into paint and materials should be tools and items such as adhesives that can be itemized on an estimate. Using a combined number for paint and material purchases, you should then benchmark your results. Industry benchmarks for paint and material cost should be five percent or less of total revenue including parts. Paint and material revenue should be 10 percent or more of total revenue including parts. In this scenario, profit is five percent of total revenue including parts. Ironically, the material profit in most shops is equal to half or more of their total net profit.

Here’s how you change your results:

Paint materials reimbursements are based on paint labor hours sold, so estimating is critical. Invest in training your estimators to write complete estimates. Understand the estimating database. What is included and not included? I tend to leave shops printed copies of the Estimating Guides for their database provider. Damage Analysis and Blueprinting of the vehicle leads to more accurate estimates and less supplements. Involve shop experts in estimating. Body techs and painters should map out the repair at the beginning with the estimator. Color and repair processes should be verified by the painter before the vehicle enters production.

38

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 39

Guest insight from Sherwin-Williams.

BY TED WILLIAMS, BUSINESS CONSULTING MANAGER, SHERWIN-WILLIAMS AUTOMOTIVE FINISHES

April 2015

39


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 40

Ask for what you really need, but not more. Be clear and document needed procedures for the insurer. This builds a trusting partnership.

Specified Approved Material List Define a list of approved products built around best demonstrated practices for the repair. Focus on items where cost and quality intersect. Never downgrade products that are delivered to the customer on the vehicle. Cheap is not better if it causes additional labor operations to correct shortfalls (more buffing, cleaning redos, etc.). Bar-coded ordering systems minimize inventory, eliminate ordering mistakes and reinforce adherence to approved lists of products.

Measurement Track any redos and institute a program to address the source. Mix history of paint products should be tracked and measured. Use a suggested mix-by-RO-hours feature to increase accuracy of mixing the right amount for the repair.

40

April 2015

Maintain accountability for results. Recognizing good behavior is equally important as pointing out the bad. Employ KPIs to measure improvements and identify areas of improvement. Use technology such as smart scales to eliminate waste.

Application Refine product application techniques for best results. Use the right equipment and techniques for the right job. Learn to spray basecoat to hiding. Technicians often overapply waterborne basecoat after coverage has been achieved. Use tinted or similar color undercoats to achieve coverage. Have your painters trained on a regularly scheduled basis. One final area to look at is an aggressive repair-versus-replace mentality on plastic parts. The collision databases have not kept pace with the growth in surface area of today’s front and rear covers. In many cases, a shop may lose money on materials for every complete cover they refinish. If just a portion of the covers were repaired, you could significantly reduce the cost of paint materials. This program also has the ability to lower severity while driving up margins through labor procedures.


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 41

It Takes a Strong Coach to Win. Not all paint suppliers are alike. Look for a paint and material vendor that has the ability to coach you through a material profitability process and wants to be your partner on the journey. The best vendor is one whose culture is built around the interest of the partnership. Look for these other attributes in a good paint partner:

Willingness to work with your team on your shop floor Mentality of selling the customer no more than what they need Have tools available to improve results Invested in providing the training your shop needs Focused on providing daily coaching and support to help you grow and develop your business Staffed with a factory-trained, knowledgeable support structure to provide results.

In a competitive market, shops have to invest to grow. If they are not profitable, then they cannot invest. Paint and materials are a great starting point for a profitable, continuous improvement process in your collision center. H&D Ted Williams is a second-generation collision repairer and former Skills USA/VICA Collision Repair Champion. He has 26 years’ experience in the collision repair industry and developed Sherwin-Williams’ Secrets of Material Profitability Revealed curriculum. This course is scheduled upon request to the Sherwin-Williams Automotive Finishes Business Consulting Services Team.

April 2015

41


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 42

42

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 43

April 2015

43


HD0415_1-52.qxp_Layout 1 3/27/15 5:44 PM Page 44

Don Beaver

PRESIDENT’S

(443) 539-4200 ext. 17061 Dbeaver@antwerpenauto.com

MESSAGE GAME OVER

It has to end soon. Insurance companies beat and beat and beat on shops over CSI, cycle time and cost containment. However, their arrogant attitudes toward repairers seem to hinder just that. Any repairer worth a hill of beans knows that it rarely does any good to “pre-order” parts for a repair. In actuality, a vehicle needs to be brought into a shop for teardown and blueprint. Despite this, insurance companies think

they know best. As a result, time (which is a commodity) and manpower are wasted trying to fulfill their “wisdom” through compliance. Insurance companies are interfering in the repair process, and that interference is detrimental to their actual objectives. Recently, a major carrier began using a national locator service for sourcing LKQ (used) parts. They have gone as far as to enter line notes on their estimates with the phone number and quote number of where that part was located. All of that would be fine if in fact they picked up the phone and spoke to someone about what state that part was in, how long it will take to be received and the condition of the part. They have also gone as far as to include line notes to the effect of, “No part price increase will be honored if the part is not ordered from a listed vendor.” So not only are insurance companies forcing shops to use or attempt to use what many times are substandard parts, but they are forcing facilities to purchase these parts from a specified vendor at a specified price. Out the window goes any relationships that shops have groomed over the years with vendors. Gone are the countless examples that prove time and time again that buying locally from someone you know is the way to go. I’m not even talking about their refusal to pay for required procedures and materials. That’s a whole different problem that we have. For months now, I have written about how WMABA does and will continue to need your help. Well, that time is upon us. If you are as tired and frustrated as I am, step up. Start saying no when these outside influences don’t mesh with your business model. Insurance is a business, and they are good at making money. Don’t let that be at your expense! When WMABA goes to bat for our industry, we will need your help. Stay tuned and stay ready. 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: __________________________________ 44

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 45

April 2015

45


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 46

46

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 47

April 2015

47


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 48

48

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 49

April 2015

49


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 50

ADVERTISERS’ INDEX Alexander & Cleaver............................23 Alexandria Toyota ................................41 All Foreign Used Auto..........................41

Audi Group ..........................................17

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

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

BMW Group ........................................26-27 BMW of Silver Spring ..........................IBC BMW of Fairfax....................................3

CAPA ..................................................16 Chesapeake Automotive Equipment ..7

Empire Auto Parts................................50 Ford Group ..........................................21 Future Cure ........................................19

GM Parts Group ..................................20 Hendrick Honda ..................................43

Honda Group ......................................25 Hyundai Group ....................................48

Koons Ford ..........................................43 Malloy Auto Group ..............................46 Mazda Group ......................................49 MINI Group ..........................................31 Mitsubishi Group..................................35 Mopar Group ........................................29 Nissan Group ......................................9 NUCAR................................................8

O’Donnell Honda ................................50 Packer Norris Parts ............................11

Porsche Group ....................................13

Porsche of Silver Spring ......................IBC PPG ....................................................IFC Russel Toyota ......................................40

Safety Regulations ..............................28 Sherwin-Williams ................................4

Subaru Group ......................................47

Toyota Group ......................................42 VW Group............................................30

50

April 2015


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 51

April 2015

51


HD0415_1-52.qxp_Layout 1 3/27/15 5:45 PM Page 52


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.