STORM BREWING MESSAGE PRESIDENT’S
As more consumers begin to learn about their Right to Appraisal (RTA) and use it to deal with disagreements with their insurer, a dark cloud has been brewing on the horizon on two fronts.
On the consumer side, one problem involves untrained appraisers who saw low-hanging fruit, so to speak, and took a two-week training course on adjusting or appraising. Now, they are taking an already uncertain and unfamiliar process and making it worse.
On the other hand, carriers are frustrated that they are being questioned and, in most cases, see the process of appraisal yielding larger claim payouts. Instead of considering that may be because they are doing something wrong and addressing antiquated practices, they seem to be choosing to potentially interfere and control what is supposed to be an independent and unbiased review process of dispute resolution between policyholder and insurer. They slander the appraisers chosen by the consumers and claim the shop is pushing them to contact a specific appraiser.
Meanwhile, the insurers select the same independent appraisal firms to conduct the RTA as a normal claim and then choose staff adjusters to serve as the appraiser. Yes, some policy language will allow that, and while a plea to a court may indeed change this practice, it would mean more time and money for the consumer. I have heard they are setting limitations on these appraisers with regard to what elements they may and may not consider, appraise and discuss. This seems to be a stark contradiction to the true spirit of appraisal to allow two disputing
WMABA OFFICERS
PRESIDENT Steven Krieps steve@gregclineauto.com 304-755-1146
VICE PRESIDENT Rodney Bolton boltonconsulting61@gmail.com 443-386-0086
TREASURER Kris Burton kris@rosslynautobody.com 703-820-1800
SECRETARY Phil Rice phil@ricewoods.com 540-846-6617
IMMEDIATE PAST PRESIDENT Torchy Chandler Torchy Chandler torchy.chandler@gmail.com 410-309-2242
BOARD OF DIRECTORS
Don Beaver (donbeaver3551@gmail.com) 443-235-6668
Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928
ADMINISTRATION
EXECUTIVE DIRECTOR
Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649
WMABA CORPORATE OFFICE
P.O. Box 3157 • Mechanicsville, VA 23116
Bill Hawkins (hawkinswilliamjr@gmail.com) 510-915-2283 John Shoemaker (john.a.shoemaker@basf.com) 248-763-4375
parties to seek fair, reasonable and unbiased resolution. Yet, they may see nothing foul.
Coupled with the truth that most states don’t have any timelines or requirements for the appraisal process and we fall back to the terms of the policy, which also are mum on key items such as “timeline to complete.” This can lead to an RTA taking months to reach a settlement. Now, the consumer is frustrated… and who will they blame – the appraiser, their chosen repair facility or their insurer? Sadly, it’s those who actually answer the phone, and we know how difficult it can be these days to get an insurance representative on the phone.
Honestly, it’s sad to watch as what seems like a clockwork system is being threatened by adults acting like children. Carriers have decided to attack the appraisal process, saying it’s hurting “premiums.” This same fear tactic has been used for decades, yet
continued on pg. 30
HAMMER & DOLLY STAFF
PUBLISHER Thomas Greco thomas@grecopublishing.com
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MANAGING EDITOR Chasidy Rae Sisk chasidy@grecopublishing.com
OFFICE MANAGER Donna Greco donna@grecopublishing.com
PRODUCTION Joe Greco COORDINATOR joe@grecopublishing.com
@grecopublishing
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 © 2023 Thomas Greco Publishing, Inc. Stock Images courtesy of istockphoto.com.
www.grecopublishing.com
Co-celebrating decades of creating chemistry between two industry leaders
Here’s to 241 years of combined service excellence
This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.
Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.
EXECUTIVE DIRECTOR’S MESSAGE
By the time you read this message, Industry Week in Richmond will be in the immediate rear view; as I write, I’m gearing up to head to what I’m certain will be a packed week of industry unity, valuable meetings and two days of tradeshow the likes of which we’ve never seen in our area. If you were in attendance, I’m sure you’ll agree that even the best Zoom meetings, conference calls and emails simply cannot compare to all you took in April 12-15. The buzz leading up to Collision P.R.E.P. at the Southeast Collision Conference and SCRS/CIC events in Richmond tell me that the industry is back in a big way.
To those of you NOT in attendance...where were you?
If you’ve been paying attention to my Executive Director’s messages for the past few months, you have heard me talking up the importance of this week and what it means to all of usespecially you. I gave plenty of heads up, reminding you to get your affairs in order. I wasn’t joking when I said lightning was striking with SCRS, CIC and WMABA’s Collision P.R.E.P. all coming together, and concluding with the Southeast Collision Conference. It is a huge deal to have all of these entities and events happening under one geographic “roof” so to speak, and we simply do not know when - or IF - it will happen again in a place so central, so accessible, so EASY for you to attend.
Collision P.R.E.P. education provides national-level training
in a local environment, and in this case it was literally dropped on your doorstep. Are you concerned with charging appropriately for repairs? You should have been here. Do you need help preparing for all the changes hitting repairers coming down the pike, and right now? You should have been here. Are you worried about the tech shortage? You should have been here. Do you need more tools, equipment, products for the shop, or simple camraderie with the movers and shakers in the industry? You should have been here.
I have a great feeling about the Industry Week I’m heading in to, and I applaud all of you who have invested the time in your business and yourself to be part of it. I can’t wait to share all of the fantastic things that happened in the June issue of Hammer & Dolly, but even our exclusive coverage can’t take the place of experiencing it live. So if you missed it... I don’t know how else to say it. You should have been here. H&D
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Celebrating Future Collision
Professionals at Maryland SkillsUSA
On March 24-25, the Maryland SkillsUSA Collision Repair, Automotive Refinishing and Collision Damage Appraisal Competitions were held at the Center of Applied Technology North in Severn. Congratulations to this year’s winners!
COLLISION DAMAGE APPRAISAL WINNERS
First Place: Megan Workley
(Center of Applied Technology North; Severn)
Second Place: Ryan Tucker
(Dr. James A. Forrest Career & Tech Center; Leonardtown)
Third Place: Damien Bruce
(Center of Applied Technology North; Severn)
COLLISION REPAIR WINNERS
First Place: Robert Walker
(Frederick County Career & Tech Center; Frederick)
Second Place: Allen Koon
(Center of Applied Technology North; Severn)
Third Place: Kevin Bowman
(Frederick County Career & Tech Center; Frederick)
AUTOMOTIVE REFINISHING WINNERS
First Place: Falcon Wilmot
(Center of Applied Technology North; Severn)
Second Place: Jeffrey Paules
(Washington County Tech High School; Hagerstown)
Third Place: Kyleigh Bennett
(Dr. James A. Forrest Career & Tech Center; Leonardtown)
According to one of the Maryland SkillsUSA Chairs, Matt Pratt, “We had a lot of talent this year with around two dozen competitors, which is more than we’ve had in a few years.”
“SkillsUSA is a great opportunity to get the industry together –body shops, insurance companies and individuals from all different areas of collision repair – to check out the incoming talent,” Jaime Shewbridge, the other chair of Maryland SkillsUSA, added. “Body shop owners and technicians get so busy in the business that they’re not always looped into what the schools need, so this involvement often incentivizes them to go out and help a local school.”
Of the 46 judges that participated this year, 52 percent were
returning judges who had participated in previous years. “I have a base group of people I can count on year after year, and we even get some recruiters which makes for a smoother transition for the students,” Shewbridge said. “The competition is rewarding for both sides because it’s also a wonderful experience for the students. They’re put in a position where they have to perform under pressure, and they’re always so proud of themselves when they do a fantastic job. At the end of the competitions, the judges provide feedback, and the students get the chance to ask questions of industry professionals to learn more about their future trade. And the winners receive a bunch of great prizes on top of all that!”
Industry professionals encourage the next generation.
The generosity of this year’s sponsors actually allowed for one lucky teacher to receive some wares. “At the end of the event, we wrote down the names of all the teachers who participated during both days of the competition, those who stayed until the very end to support their students, and then we drew a winner. The instructor from Dr. James A. Forrest Career & Tech Center walked away with a box filled with all sorts of consumables and supplies.”
The MD SkillsUSA organizers expressed their thanks to the following companies for donating supplies and sponsoring the event: AutoNation Collision Center, AutoPlus, Bar Harbor Auto
LOCAL NEWS: SKILLSUSA RECAP
continued from pg. 11
Body, Caliber Collision, Capital Collision Equipment, CarCraft Collision Center, Chesapeake Automotive Equipment, Chandler’s Collision Center, Criswell Collision Center, Dynamic Collision Services, Enterprise, Euro Motorcars, Gerber Collision & Glass, Huber Collision Center, I-CAR, International Collision Center, Imperial, Koons, LKQ-Keystone, Lord’s Collision Experts, Maryland Collision Center, Maryland I-CAR Committee, McCormick Auto Body, O’Donnell Honda, OEC, ProSpot, RPS, RRR Automotive Group, Roy’s Body Shop, State Farm, Subway Auto Body, Sudden Impact Collision Center, Tesla, Top Coat Garage, Two Guys Collision, USAA and Wee Heart Autobody, along with individual sponsors: Crystal Mozingo, Dakota Castle, Jamie Ciarpello, Joseph Rinehart and Robert Boyer.
The first place winners from each category will go on to compete at the 2023 National Leadership and Skills Conference (NLSC) scheduled for June 19-23 in Atlanta, GA. More information on SkillsUSA is available at skillsusa.org. H&D
Executive Director’s Thoughts
I couldn’t be more proud of not only all of the students competing at SkillsUSA, but also of the solid number of judges coming out to help support this year’s competition, many of them returning! Seeing this kind of dedication from within the field and those entering gives a feeling of hope for the future! -Jordan Hendler
WIN A 1969
WHAT IS OPERATIVE TALENT?
Operative Talent is a collaborative effort between KTL, the Collision Repair Education Foundation (CREF), BASF and over three dozen partners as automotive professionals seek to provide students with a once-in-a-lifetime opportunity to get up close and personal with a 1969 Camaro (named “Talent”) by participating in rebuilding the classic car…and hopefully, they’ll learn a little more about the different career paths available in this diverse industry during the process.
WHO DOES OPERATIVE TALENT BENEFIT?
The entire industry - both by involving students in the rebuild process and through the funds raised which will go toward raising awareness by showcasing the industry and its career opportunities to the general public, which will benefit the entire industry. The success of the project relies on the entire industry getting involved and championing the endeavor.
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Wholesale Parts
Supplying the industry with new blood.
BY ALANA QUARTUCCIOMEMBER SPOTLIGHT
CENTER OF APPLIED TECHNOLOGY NORTH
Inspiring and preparing the next generation of collision repairers is crucial to the future of the industry. There is just not enough new blood picking up tools and paint guns compared to the amount of work there is on shop floors all around the country.
Thankfully, there are passionate and dedicated educators around who expose young people to the rewarding world of collision repair like the team at the Center of Applied Technology North (CAT North) in Severn, MD.
The school offers a two-year high school level program designed to introduce students to the different areas of collision repair, allowing them to get a feel for what they may excel in the most, according to Automotive Refinishing Instructor Amanda Levine.
“We break it down into two sets of students,” she explains. “We can have up to 16 students in each class so upwards of 32 students at most. The students start off in either collision or refinish. After one marking period, the students will switch to the class they were not in initially. So, if they start in collision, their second marking period will be in refinish and vice versa. After the first half of their first year, they get to decide if they like body work or painting more, and most of the time, we are able to accommodate all of the students to place them in their preferred class. From there, we begin to focus on what work they would be doing in the shops. We also all work together to teach students the estimating portion they would have to deal with in the shops.”
The educational facility is considered a “feeder school,” taking students from different high schools in the county who are bussed to their facility.
Now that COVID and virtual teaching is in the rearview mirror, Levine is seeing an uptick in enrollment of first-year students and is confident that the program is on its way back to normal.
CAT North wants to make sure students have the opportunity to learn about their collision repair program and will do as much outreach as they can to make it known. They work with local body shops in a number of ways, so students can learn more about the profession beyond the classroom. Levine has had shop owners come in to share experiences and explain their apprenticeship program. They have hosted field trips to nearby shops. “We do this typically at level one so students are able to see what a shop environment is actually like since there is a difference between education and work environments.”
An apprenticeship program is being developed by the Department of Education that would be open to the entire county, and the school is working to get involved with that as well.
CAT North reaches out to local middle schools to make younger
students aware of the many opportunities they offer. They stay active with the community by hosting a car show each fall and doing events with other organizations.
Keeping up with supplies can be challenging as expenses continue to rise. As the host location for the Maryland SkillsUSA competition, CAT North receives donations of leftover products including body panels which Levine implies is a huge help. Paint supply costs are increasing. Levine reports her paint line went up nine percent last quarter and six percent this quarter. Items such as body panels can be sand stripped and reused, but paint can’t be repurposed once it’s mixed or sprayed.
CAT North works hard to prepare the students for the outside world in this profession but unfortunately there are some “hiccups” up-and-coming technicians are likely to encounter along the way, insufficient pay being one of them. Levine says the pay structure has not kept up with the times. Too many students have found themselves working in body shops for minimum wage after graduation while many other trades tend to start young people off with higher wages.
Levine strongly believes that it takes people in the industry to join hands to help make it better for everyone. Being an active member of WMABA opens the door to connections the school would not have access to otherwise.
“It goes back to the old saying ‘it takes a village.’ If people in this industry want good technicians to come and work for them, the only way it can happen is if we all work together to educate and develop these young technicians,” stresses Levine.
The shops who participate with their local schools are most likely the better shops to work for, Levine suggests.
“I think they have grasped the concept of what it takes to bring up good technicians, and they know that it takes a team of people to do so.” H&D
LOCAL FEATURE
COLLISION CRAFTSMAN RETIRES
DUE TO LACK OF QUALIFIED HELP
Collision repair is all about craftsmanship, according to Lee Morris of Old Dominion Body Works (Richmond, VA) who recently retired and dismantled his 40-year-old business.
When he was just 20 years old, Morris founded Old Dominion in 1983 as a oneman, two-bay operation, but over the years, his dedication to customer service and emphasis on providing high-quality repairs allowed him to expand his facility and hire six additional collision professionals. “I’ve always fixed cars for the vehicle owner, not the insurer,” he explained. “I never signed
onto any DRPs because I felt like those took the focus off my actual customer and their needs.”
Morris has always taken pride in his work, seeing collision as a measure of craftsmanship. “I’ve thoroughly enjoyed my career in this craft, but that’s something we’ve lost somewhere along the line: the craftsmanship of it all. Just like a carpenter or brickmason, auto body repairers need to acquire certain skills, and that should be honored, especially in today’s collision environment.
“Modern vehicles are incredibly
complicated, and industry standards change constantly,” he continued.
“Between the many non-reusable parts that need to be replaced after being damaged and the unbelievably low tolerances, a lot of work is involved to truly restore late model vehicles back to their pre-accident condition, but our customers deserve better than having their car returned when it’s only been put back together halfway. It takes a lot of effort to do it right, but these days, it seems like no one wants to put the energy into developing the skills needed to be a collision craftsman, and that’s truly sad.”
In fact, Morris decided to close his shop and retire last summer due to a lack of qualified help. Although Morris has a close relationship with the local vo-tech program that he graduated from, the school has been unable to send a student his way in the last five years because so few graduates intend to pursue a career in the industry. His search for more qualified technicians yielded even more dismal results.
“After one of my A-techs retired last year, I conducted interviews but couldn’t find anyone who came close to having the abilities I was looking for; there doesn’t seem to be anyone in this market who believes in the craft anymore. Twenty years ago, a bodyman could be replaced in 30 days or less easily, but in today’s climate, it’s impossible to reproduce a solid crew that can be held accountable.”
Morris attributes the degradation of the collision craft to greed and a lack of knowledge. “My hat’s off to the successful shop owners who are doing things right, but so many people just focus on their
checkbook and whether they’re making money, even though half of them don’t know the difference between net and gross profit. Instead of learning how to run their businesses more effectively, they cut corners and build big fancy facilities that allow them to pull the wool over the customers’ eyes to prevent anyone from noticing that they’re not doing the things they should. I’ve done some postrepair inspections and am simply appalled by some of the shoddy workmanship I saw.”
In contrast, Morris is “just some dumb guy who worked his fingers to the bone because I love the repair side of this industry... Every shop owner must choose their own path, but it seems like fewer are choosing the right path every year. I’m not perfect by far, but I’m aware and I care. I have spent the past four decades working seven days a week in my shop…I looked at every car and test drove them all because I wanted to make sure they had truly been restored to pre-accident condition before I put my name on them. That’s really what it takes. So many people get offended by being told that no one cares, and although I don’t name names, those who take offense should probably look in the mirror. You have to pay attention to what’s going on.”
Staying on top of evolving industry knowledge has come in two main formats, Morris shared. First, he has always spent time reading industry publications, like Hammer & Dolly, to ensure he was aware of what was coming down the pipeline. “Collision magazines do a great job of telling us what we’re going to be faced with. You can pretty much guarantee that what you see on the cover is going to be something you’ll need to deal with in your shop within the next six months.”
Secondly, Morris aligned himself with AkzoNobel early in his career. “I started with them in 1985 shortly after they came to the US, and their phenomenal mindset really helped me grow and turn my shop into what it became. Every shop owner needs someone to look over their shoulder, provide knowledge and help them sort through the challenges we encounter. AkzoNobel has always been very good to me.”
After Morris announced his retirement, Mike Forsythe (AkzoNobel) presented him with a “Legacy Award” to recognize his accomplishments over the past 40 years. “Lee has always insisted on doing things the way he believes they should be done, and although that hasn’t always made him the easiest person to work with, he has never shied away from being the ‘bad guy’ if that meant making sure the job was done right for his customers,” Forsythe praised Morris’ devotion to the craft.
“I still enjoy repairing cars and would have never closed my shop if I could have found like-minded people to join my team, but I refused to hire techs who couldn’t perform the work correctly. I wasn’t going to stand by and watch the dangerous atrocities that take place on so many cars,” Morris shared, and while he will certainly miss his customers, he is eager to begin the next chapter.
Rather than sell his business, Morris emptied the shop and
sold the real estate. “A couple different guys were interested, but I couldn’t bear the idea of selling my name and reputation to someone who might ultimately bow down to the pressures that so many succumb to. I posted a sign that reads, ‘I’m retired,’ built a building next to my house and started relocating my tools – I definitely couldn’t part with the tools of my craft!”
Although Morris doesn’t know exactly what the future holds, he looks forward to “never having another employee as long as I live. I’ll never have to travel down Interstate 360 and wonder if my employees will be there or what type of drama we’ll face today. I have low-level needs. I’ll probably spend time in my shop at home so I can focus on the craftsmanship, maybe build some hotrods, but I won’t have to be responsible for anything now. I enjoyed my 40 years in the collision industry, and now I’m ready to enjoy myself.” H&D
Executive Director’s Thoughts
Kudos to Lee, who is the epitome of what this industry is all about: Hard work without compromising your reputation, keeping up-to-date on changes through cultivating long-lasting relationships (and reading magazines like Hammer & Dolly!), a commitment to the future by staying in touch with the local vo-tech program, and a true devotion to the craft. We wish him well! -Jordan
HendlerDATABASE ENHANCEMENT GATEWAY REBOOT ENHANCES SECURITY AND INCREASES EFFICIENCY
As anyone who works in a collision repair facility can certainly attest, the operations identified by information providers (IPs) such as Audatex, CCC and Mitchell are much more likely to be “estimates” of the time and requirements actually affiliated with certain procedures than the detailed repair plans written in today’s shops. For 15 years, the Database Enhancement Gateway (DEG) has been helping the collision repair industry improve the quality, accuracy and standardization of their repair blueprints – with over 20,000 inquiries submitted through the end of last year.
Suffice it to say that the DEG is powerful, yet because it is funded and managed by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP), along with additional donors/sponsors, this resource is offered FREE to the industry, allowing users to provide feedback that is used to improve the quality of information in the IP databases. If that wasn’t already an amazing feat, degweb.org saw a significant reboot earlier this year, designed to enhance security, increase user-friendliness and advance analytic capabilities.
“The entire website is completely refreshed with a new look and feel,” according to DEG Administrator Danny Gredinberg. “It has been mobile-optimized to encourage more users to utilize the free resource. Phoenix Solutions Group stepped up to the plate and not only built a new main website but also completely rebuilt the database from scratch, making it faster, easier to use and more visually appealing, all while maintaining the existing database and without losing any information.”
Nick Schoolcraft (Phoenix Solutions Group) shared highlights about the updated site. “Security has been enhanced, and the ability to input inquiries will be much faster and more user-friendly,” he promised. “Users will be able to dive deeper into each individual query, plus we increased the overall speed of the website, leveraged mobility so it will be usable on mobile devices and updated the structure of the database to improve the reporting feature.”
The primary goal of the redesign was security enhancement, ensuring the new website would provide the highest possible level of security while also improving the user experience. “We invested in enhanced security measures that don’t slow loading times or make the user experience cumbersome,” Schoolcraft explained. “By taking
these extra precautions, we’ve been able to make sure visitors get the best possible experience while keeping their data secure. With the enhanced security measures in place and faster load times, visitors can feel good that DEG is doing its part to keep its data safe.”
“Phoenix Solutions Group’s top priority was ensuring the security of the data we receive cannot be accessed by anyone since that information can be sensitive,” Gredinberg added. “Each user that accesses the information only has a certain level of access, depending on their assigned permissions, for the specific information necessary to complete their review of the inquiry and database.”
Most users are familiar with the DEG from the perspective of submitting questions for clarification from the IPs, and often, those inquiries result in changes to the databases. In fact, 60 percent of the inquiries submitted in 2022 resulted in a net change. “That’s the power of what the DEG does,” SCRS Board member Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA) noted. “It provides a way for us to collaboratively push the boulder up the hill together.”
While inquiries are still input through a webform, the process has been revamped to provide an updated look while also being updated to work seamlessly with all web browsers, whereas it worked best with Google Chrome prior to the reboot. Optimizing the site to make it more accessible on tablets and mobile devices was another top priority. “A fundamental component of the redesign was to make sure visitors had a seamless experience across all devices, from desktop and laptop computers to tablets and mobile phones,” according to Schoolcraft. “We wanted the site, as well as database inquiries, to be effortlessly consumed by visitors on any device.”
“We hope this will encourage additional use straight from the shop floor,” Gredinberg added. “You can quickly add attachments (photos, videos and various documents) right on the spot to streamline the inquiry process.”
Users can also expect improved search results and filtering options for vehicle-specific information when searching the database, allowing for streamlined workflows as well as advanced data and analytical capabilities.
“Visitors of the site will see improved search functionality
as well as a much faster, responsive and intuitive experience,” Schoolcraft promised.
Lastly, the Estimators’ Toolbox portion of the website has been expanded to provide even more estimating tips, easy access to SCRS’ Quick Tips videos, OEM repair information, links to vehicle owners manuals and much more to help keep today’s collision repair professional informed with all the data they need right at their fingertips.
Learn more about the DEG or submit an inquiry at degweb.org H&D
Executive Director’s Thoughts
If you’re not using the DEG every single time you find a discrepancy in the IPs’ information, you are missing out. The redesign allows repairers to find the information they need fater, from any web browser, right from the shop floor if need be. It’s never been easier or more user-friendly and is literally packed with resources you can use TODAY, right now, on your phone or mobile device. What are you waiting for?
-Jordan HendlerThe recently revamped degweb.org features an updated, sleek look, optimized searchability and security, an expanded Estimators’ Tool box with SCRS Quick Tips, OEM repair information and much more.
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• Includes the majority of key collision components for select popular models
• We can meet or beat aftermarket prices!
OFFICERS
Position Your Business as a Leader!
Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment.
PRESIDENT: Steven Krieps srkrieps@live.com 304-755-1146
VICE PRESIDENT: Rodney Bolton rbolton@aacps.org 443-386-0066
TREASURER: Kris Burton kris@Rosslynautobody.com 703-820-1800
WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, VA and WV collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities.
Automotive collision repair facilities in Maryland, Virginia, West Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level.
WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer &
DollyEXECUTIVE DIRECTOR: Jordan Hendler
jordanhendler@wmaba.com
804-789-9649
COVER STORY
IS COLLISION REPAIR RECESSIONRESISTANT? PART
It’s nearly impossible to turn on the news or even scroll through social media without hearing about rising costs, inflation and even the possibility of an economic recession. Although these concepts are bound to terrify any small business owner, what may be a detrimental downturn for other industries actually opens up the door to many opportunities for collision repair shops, and while no industry is truly recession-proof, industry experts suggest that auto body shops may be a bit more resistant to economic uncertainty than other fields. So before letting those fears overwhelm you, check out some of their valuable insights.
“When interest rates rise and there are fears of a recession, I recognize how easy it is to become overwhelmed with fears, but I’m not afraid,” insists Mike Anderson (Collision Advice). “While it’s obviously bad in some ways, I believe it’s also good news for our industry because there are some pros. For example, a higher interest rate makes it harder to borrow money which means fewer people can open new shops. It increases the price of admission. While we need more good shop operators, creating a barrier of entry prevents just anyone from opening a shop and offers some protection to the people who are currently in the industry and actively investing in their businesses.”
Maylan Newton (Educational Seminars Institute) agrees that “the transportation industry has survived very well during every past recession. Even during the height of the pandemic, repair shops remained busy because people wanted to isolate themselves in their own mode of transportation. In the US, we are very transportationdependent, and few places have a reasonably clean, rapid public transit system. The average vehicle age and miles driven has increased, and although the industry is changing, I don’t think it’s changing to the point that it won’t be needed. Sure, we will need to modify the way we do things and learn new technology, but there are plenty of cars on the highway that need our attention.”
Although COVID resulted in a larger remote workforce, the public still relies on their vehicles – to take the kids to soccer or dance practice, to travel to appointments and to attend social gatherings – and shops typically report a steady workflow.
“Our cars are integral to how we live our lifestyles. That plays a lot into the consistent need for repairs, and as the economy tightens, more people opt to repair their cars instead of buying new,” points out Rachel James (Torque Financial Group). “Looking back at the economic changes the industry has experienced over the years, the
BY CHASIDY RAE SISKonly real constant is change. The economy isn’t stagnant; there’s economic uncertainty every day. But shops are used to changing and adapting. If you get a run in your paint, the painter knows there are tools to fix it. Having a solid financial plan is a tool that every business needs, no matter the current economic situation.”
Rather than experiencing lulls, many shops are actually overwhelmed with the number of repairs needed, largely due to the ongoing workforce shortage. Economic instability in other industries may actually open up potential opportunities for repair facilities to attract more qualified talent, James suggests.
“With companies announcing closures of locations all across the country, the employment structure is weakening which means qualified professionals will be looking for new opportunities. This offers our industry a chance to attract customer service representatives and other skilled talent to repair and collision shops.”
While economic uncertainty is typically viewed negatively, it also offers some positive aspects, according to Rick White (180BIZ). “This is a chance to realign and correct the economy when prices spiral out of control. It also offers a chance to ‘discover who’s swimming naked,’ as Warren Buffet said. A lot of activity hides a lot of sins in sales. Poor performance at the front counter can still be profitable if I have enough people coming in, but when the tide goes out, those shortcuts are glaringly evident without the activity to hide them. Slowing down gives us a chance to step back, return to the basics and correct our actions.”
Rather than giving into pessimistic thoughts, Newton recommends that shop owners look on the bright side. “If it’s all doom and gloom, why are so many consolidators buying up shops?” he asks.
“Venture capitalists are making huge investments in MSOs and software companies, and they wouldn’t do that if they didn’t believe there was a return on investment. We’re a vital industry, so we should be going to work excited, with a good attitude. Be optimistic about the future! Yes, we’ll need to learn about electric vehicles and how to work on alternatively fueled cars, but we’ve been learning for over 100 years. We started as blacksmiths, and now we’re working on complex machines. Even when vehicles advance to the Jetson-age of flying saucers, they’ll still need us to fix them. It’s up to you if you’re going to be prepared for that future or if you’re going to give up now.”
“Shop owners need to keep their heads and maintain a positive mindset because how you show up in business has everything to do with how the business will go,” White
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PRESIDENT’S MESSAGE
continued from pg. 4
it has amounted to – you guessed it – slowly and consistently rising premiums anyway, because in reality, insurance is a business, and if a business does not show growth, the business shuts down or people lose their jobs.
As a repairer, be aware of the coming storm and make sure you understand your role in the process of claims, consumers and repairs. You are not a hero, despite your desire to fix not only the car, but also the driver. There are things you can neither control nor should be involved in. Don’t over promise what you can deliver, and stay in your lane. Consider what you are going to do if a consumer invokes the Appraisal Clause. What should you not do? The reality is that it has nothing to do with you!
I know a lot of people say we are the ones fixing the car. You are right! You are fixing the car, but RTA is a way to fix the claim, and these are not the same thing. Discuss your position with your attorney or legal representative. I conduct appraisals daily and have firsthand knowledge and experience on the subject. Some of these opinions expressed are my own based on conversations with other appraisers and adjusters. These only reflect my experiences and are not to be construed as a full representation of fact. H&D
COVER STORY
continued from pg. 29
agrees. “You may need to work harder, but recognizing there are still opportunities to take advantage of is better than believing it’s going to get slow. Thoughts dictate actions, so when you accept that negative change is coming, you stop working as hard; your negative thoughts allow you to spiral and reinforce that negativity. But positive thinking helps you work harder and make good things happen.
“When things go well, we unconsciously expect them to stay that way, and when they go sideways, we fear they’ll stay that way,” he continues. “But neither is true. In reality, there are seasons to business: We plant and grow in spring, nurture in summer, harvest in the fall and then recharge and reset every winter. And if you’re prepared for those cycles, it can be pretty amazing. Jim Rohn has a great lesson on thinking like an ant…never quit, focus on gathering all you can, think winter all summer and think summer all winter. Your economy lives in the six inches between your ears, and when you’re approaching the unknown, recognizing that you control your mindset and your mindset controls your outcomes can make all the difference in the world.”
Embracing a positive mindset may sound easier said than done, but identifying the opportunities that exist allows shops to take advantage of them and assume a more favorable outlook on the future. So, what are those opportunities, how can advancing technology work to shops’ benefit, and how can shops navigate increasing expenses? Find out in the second part of this feature, coming soon to the July edition of Hammer & Dolly. H&D
ADVICE INDUSTRY ASK MIKE:
If the EV Boom Is Real, Is the Industry Ready for It?
This month, we “ASK MIKE” for his thoughts on the industry’s readiness to embrace electric vehicle (EV) repairs. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industryrelated matter that he can answer in a future issue.
Hammer & Dolly: We have discussed EVs in the past, and you’re at an advantage because you visit with shops all over the country and can gauge where they are in terms of adapting to different things. In terms of EVs at this moment in time, what are your impressions as far as the industry’s overall preparedness to handle these vehicles?
Mike Anderson: The timing of your question is perfect. I was fortunate enough to be at an event for the Alliance of Automotive Service Providers of Illinois (AASPI) recently. General Motors and Ford were both on a panel discussion that I was a part of. I asked them, ‘Is this “EV” thing real, or are we still waiting to see?’ They both said it’s not going to happen – it has already happened. First of all, people need to understand that we’re not just talking about Lucid, Rivian and Tesla; it’s Volvo, GM, Ford, Nissan and other OEMs. EVs are already here and happening.
Kudos to I-CAR, because they’ve come out with a class that people can take in Chicago at I-CAR’s Technical Center. That will help people understand what needs to be done. Ford and GM recently shared with attendees in Chicago that their classes are going to be held through I-CAR. Of course, other OEMs, such as Tesla, offers their own training. What I’ve heard most from people is that it is important to not just have training on how to properly
repair the vehicle, but that there’s also training on how to handle that vehicle when it’s brought into your shop. I was at a conference recently, and Dirk Fuchs from I-CAR and Jake Rodenroth from Lucid shared a story about a vehicle that had been towed into a shop. Many hours later, that car caught on fire because the battery was concussed; it burned up three or four other cars around it. There are a lot of things that we’re going to have to learn that we don’t even think about. How do you handle that EV when it’s towed in? How do you check the temperature of the battery area? It’s not just about training on how to fix the vehicle; it’s also training on where the vehicle should be stored and quarantined and things of that nature. The days of taking a vehicle off a tow truck and just putting it in your building or parking it on the lot are going to be gone. There’s a whole lot more that has to be considered.
H&D: What’s your impression on where this is all going to go for shops? Do you see EV work becoming a specialized repair that only certain shops will be able to perform?
MA: I do see it becoming specialized, and I do see it as a segment of the industry that will grow. EVs will do to our industry what aluminum sort of did. When aluminum first came out, there were restricted parts sales and specialized training. At some point, EVs are going to be a differentiating factor between the shops that are certified to fix them and those that are not.
H&D: What are you hearing out in the field? Are shops enthusiastic or apprehensive?
MA: Shops are apprehensive because they are concerned about storage and space or the investment when they may not see that many EVs. The shops that are most interested seem to be the ones that have higher-end certifications. They’re already used to having a specific dedicated aluminum bay or whatever the case may be. Those are the shops that are jumping into it and getting the training.
Do you know how to handle EVs?
BY MIKE ANDERSONH&D: With EVs, it’s certainly more about safety than it is about tooling and training. If a tech has a bad day, it could be lights out for them.
MA: It’s like what Jake Rodenroth says: “Before, if you did a bad job, you hurt the car. Now, if you do a bad job, the car can hurt you.” Worse yet, it can kill you. Also, we have an obligation to try to educate our firefighters and first responders in our area. They have as much to learn as we do.
H&D: What’s your opinion of the current education available? Is it enough?
MA: We need more. Obviously, as the OEMs have more information come out, that training will be made available. There are so many things to get training on, such as curing times. How long can you bake an EV for? This is not just something for collision techs and estimators; it’s also something for refinish departments to learn about.
Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com). H&D
Our industry is very resilient. I have no doubt that we’re going to figure it out. Every OEM I’ve talked to is committed to bringing the training. I’m neither concerned nor afraid. Shops are just going to have to figure it out and invest in it. H&D