Hammer & Dolly June 2021 by Thomas Greco Publishing, Inc.

June Collision P.R.E.P. Preview

Testing Your Techs

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CONTENTS June 2021

24 COVER STORY BY JOEL GAUSTEN

THE DAWN OF DISRUPTION:

PREPARING FOR THE COMPLEX COLLISION WORLD TO COME

The changes, concerns and words of caution you need to know, from the Collision Industry Conference and more.

LOCAL NEWS 10 SKILLSUSA ANNOUNCES MARYLAND AND WEST VIRGINIA STATE COMPETITION WINNERS An industry tradition returns in a virtual format.

NATIONAL NEWS BY JOEL GAUSTEN 12 SCRS PROVIDES EXTENSIVE INDUSTRY ACTIVITIES UPDATE

DEPARTMENTS

Inside the first in-person event since 2020.

COLLISION P.R.E.P. PREVIEW

Executive Director’s

Message

16 LOOKING BEYOND “NORMAL:” A NEW PERSPECTIVE ON LABOR RATES

BY JORDAN HENDLER

WMABA Membership

Fresh ideas on a long-running issue.

WMABA FEATURE BY JOEL GAUSTEN 20 TESTING YOUR TECHS: A TOOL & EQUIPMENT

REALITY CHECK – PART THREE

Does your shop have the right people for today’s repairs?

INDUSTRY ADVICE: ASK MIKE 32 WHY AREN’T PEOPLE PULLING OEM PROCEDURES?

No more excuses.

Application

Editor’s Message

BY JOEL GAUSTEN

WMABA

Sponsorship Page

34 Advertisers’ Index

June 2021

EXECUTIVE DIRECTOR’S

MESSAGE

Bridging the gap. BY JORDAN HENDLER

FUTURE AND PAST COLLIDE:

LABOR RATES AND NEW TECHNOLOGIES ARE ONE AND THE SAME It’s a common conversation around our office: Talking about Labor Rate issues while also grumbling about new training, equipment, diagnostics – and the liability associated with all of these things. To me, it’s the same problem: Deep reluctance to change. Cliché maybe, but still true. Many shops are frustrated by the lack of market movement over the past 20 years to have a rate that’s more in line with costs. They also know they can only make a change for themselves while feeling stifled by the “other shops.” It’s the same vein of frustration that shops are having with the constant changes with vehicle technologies, scanning and diagnostics and the increasing prevalence of electric vehicles. Now, we’re talking about the safety of the customer AND the technicians in these repairs. It’s fair to say that these two issues go hand in hand when you look at the increased costs to tool and train for the waves of changes in our cars. It’s creating a wedge between shops now more than ever. In my humble opinion and from my unique viewpoint, it’s only going to get worse before it gets better. The shops leading the way in both areas are gaining the traction to legitimize the customer-centric, vehicle-specific business model as ideal over the strained market in the DRP-focused model. I’m not anti-insurance, so don’t take this wrong. I’m proshop and pro-consumer while being very sensitive to a correctly repaired vehicle. If that’s the method of claim settlement for an insurer, then we have no dispute at all. They want to control costs, and that’s their business model; I don’t fault them for that one bit. They’re in business to make money. Frankly, you are, too – no matter how you go about it. Lately, I feel there’s a gap in settlement practices that is pointing to safety problems; that makes me more uncomfortable than ever. Our upcoming WMABA Membership Meeting, which will take place just before this issue goes out, focuses on discussing and examining the drastic “virtual barriers” that have been spotlighted since the pandemic. The gap is increasing to the point where the customer needs pre-repair education about why there’s such a difference between a virtual estimate and an actual repair plan. The dollar differences are staggering in many – maybe even most – cases.

I’ve seen rail repairs that would make you sick – and in the same picture that shows a car seat meant to carry a child. These are things I cannot get behind. Cutting corners (literally) is not going to cut it anymore. The vehicles know too much. Rather than being exposed by a post-repair inspection, the vehicle safety systems won’t work – and the owner is going to know about it. The car becomes the “tattletale.” I’m happy about this. If you are upset, then let’s talk. Convergences can be a good thing. I hope that the evolution of vehicles helps equalize and raise the overall professionalism of our industry. WMABA wants to help you all with that no matter where you stand today. It’s important to the health and future of all of us, and for that I say, “Bring it on!”

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective. 6

June 2021

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EDITOR’S

Joel Gausten

(973) 600-9288 joel@grecopublishing.com

MESSAGE READ THIS! I’ve seen the true enemy of the collision repair industry, and it’s the industry itself. If you read this issue of Hammer & Dolly, it will become crystal clear that vehicle technologies are expanding faster than any of us could have imagined just five years ago. These days, performing safe and proper repairs is a matter of life and death – not just for the occupants of the vehicle post-repair but also for the technician working on the shop floor. In 2021, there’s no such thing as just accepting every job that shows up at your door; doing so can put people at considerable risk. Can your technicians properly handle an electric vehicle (EV)? Are you looking for ways to help them train in time to handle the flood of EVs that will be coming your way over the next handful of years? How many of your technicians are scanning, diagnosing and calibrating the cars you’re seeing today? There’s no need for you to answer; industry statistics already tell me what I need to know.

Citing figures from CCC, Frank Terlep of Auto Techcelerators, LLC had this to say during the most recent Collision Industry Conference (CIC) In Phoenix, AZ: “Even today, less than 60 percent of vehicles are being pre- and post[repair] scanned. What’s even more shocking [is that] 12 percent of present-model vehicles are receiving a calibration after a repair. All of us in the room should be scared to death.” What’s truly frightening about that statement is that it suggests that many repairers aren’t accessing and utilizing the OEM repair procedures necessary to ensure that the job is done right. I figured that Mike Anderson of Collision Advice would be someone in the industry with a few things to say about that, so I brought up this topic to him during our chat for this month’s Ask Mike. Boy, did I ever shake the hornet’s nest! Please go to page 32 and read our conversation. Then, read it again. And then show your technicians. And then show the insurance estimators who visit your shop. In fact, blow it up and post it on the wall of your customer waiting area. That way, nobody within your operation will have any reason to say they weren’t aware of the importance of OEM procedures and where they can find them. And when that’s all done, make sure your shop actually pulls the OEM repair procedures and follows them. If you ever doubt how important OEM repair procedures are to this industry and the quality of the work you provide, then I know a young couple in Texas with life-altering injuries who sued a body shop for millions of dollars who might want to look you in the eyes.

H&D WMABA OFFICERS

PRESIDENT Torchy Chandler torchy.chandler@gmail.com 410-309-2242 VICE PRESIDENT Bill Hawkins hawkinswilliamjr@gmail.com 510-915-2283 SECRETARY Phil Rice phil@ricewoods.com 540-846-6617 IMMEDIATE PAST PRESIDENT Mark Schaech, Jr. markschaech@gmail.com 410-358-5155

BOARD OF DIRECTORS

Don Beaver (donbeaver3551@gmail.com) 443-235-6668 Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Kris Burton (kris@Rosslynautobody.com) 703-820-1800

ADMINISTRATION

Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928 Ben Gibson (bgibson@richmondmarinecenter.com) 804-355-8151 Steven Krieps (srkrieps@live.com) 304-755-1146 Danny Szarka (danny@dynamiccollisionservices.com) 410-500-9200

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

June 2021

STAFF PUBLISHER

Thomas Greco thomas@grecopublishing.com

SALES DIRECTOR

Alicia Figurelli alicia@grecopublishing.com

EDITORIAL DIRECTOR

Joel Gausten joel@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Bonillo alana@grecopublishing.com

OFFICE MANAGER

Donna Greco donna@grecopublishing.com

PRODUCTION COORDINATOR

Joe Greco .joe@grecopublishing.com

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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 © 2021 Thomas Greco Publishing, Inc. Stock Images courtesy of istockphoto.com.

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June 2021

LOCAL

Celebrating student victories.

NEWS

SKILLSUSA ANNOUNCES MARYLAND AND WEST VIRGINIA STATE COMPETITION WINNERS

After pausing its activities last year in response to COVID-19, SkillsUSA returned in full force this spring to give vocational student competitors across the country an opportunity to showcase their skills and shine in a well-deserved spotlight. Held virtually in April, the SkillsUSA Maryland State Championship featured four automotive-related categories and yielded the following winners: Collision Repair Technology Gold: Austin Golden (Carroll County Career & Tech Center; Westminster, MD) Silver: Abby Brauning (Carroll County Career & Tech Center; Westminster, MD) Automotive Refinishing Technology Gold: Marah Hoke (Carroll County Career & Tech Center; Westminster, MD) Automotive Service Technology Gold: Alex Justice (Somerset County Technical High School; Westover, MD) Silver: Cade Hasting (Worcester Technical High School; Newark, MD) Bronze: Jamie Trejo (Somerset County Technical High School; Westover, MD) Automotive Maintenance Light Repair Gold: Nigel Bradley (Sollers Point Technical High School; Baltimore, MD) Silver: Hector Camilo (Sollers Point Technical High School; Baltimore, MD) Bronze: Andrew Held (Frederick County Career & Tech Center; Frederick, MD)

June 2021

Held in late March, the virtual SkillsUSA West Virginia State Leadership and Skills Conference proved an unforgettable experience for these victorious student competitors: Collision Repair Technology Gold: Jacob Perry (Putnam Career & Technical Center; Eleanor, WV) Silver: Levi Radabaugh (Roane-Jackson Tech Center; Leroy, WV) Bronze: Shane Johnson (Fayette Institute of Technology; Oak Hill, WV) Automotive Service Technology Gold: Devon Dean (Fayette Institute of Technology; Oak Hill, WV) Silver: John Johnson (Wheeling Park High School; Silver Wheeling, WV) Bronze: Dakota Parsons (South Branch Career & Technical Center; Petersburg, WV) Automotive Tool Identification Gold: Logan Pardue (Putnam Career & Technical Center; Eleanor, WV) Silver: Derek Gifford (United Technical Center; Clarksburg, WV) Bronze: Zackery Brady (Wheeling Park High School; Wheeling, WV) Results from the Virginia Virtual Leadership and Skills Championships were still being compiled at press time and will be included in our next issue. All Gold winners in the above categories will move on to compete in SkillsUSA’s National Leadership and Skills Conference, which will be held virtually later this month, with localized hands-on elements for select competitions. SkillsUSA is a nonprofit partnership of education and industry founded in 1965 to strengthen the nation’s skilled workforce. Driven by employer demand, SkillsUSA helps students develop necessary personal and workplace skills along with technical skills grounded in academics. This framework empowers every student to succeed at work and in life while helping to close the skills gap in which millions of positions go unfilled. SkillsUSA has more than 372,000 annual members nationwide in high schools, middle schools and colleges, covering over 130 trade, technical and skilled service occupations. Additionally, it is recognized by the US Departments of Education and Labor as integral to career and technical education. SkillsUSA receives in-kind and financial support from more than 650 national partners and has served more than 13.6 million members. For more information, visit skillsusa.org. H&D

June 2021

NATIONAL

NEWS PROVIDES EXTENSIVE INDUSTRY ACTIVITIES UPDATE After more than a year without in-person events, members of the Society of Collision Repair Specialists (SCRS) recently gathered in Phoenix, AZ for the association’s first live Open Board of Directors Meeting since January 2020. In addition to providing attendees an opportunity to finally connect face to face, the gathering showcased a number of impressive activities that have kept SCRS on the forefront of addressing the needs of the national collision repair community. Quick Tips and Kool Tools With many auto body professionals still conducting much of their business from home, SCRS has regularly used online resources throughout the pandemic to educate and inform association members and the industry at-large. In January, the association launched a weekly video series of “Quick Tips” to boost viewers’ businesses. These videos, presented by Mike Anderson of Collision Advice and Danny Gredinberg of the Database Enhancement Gateway (DEG), are available for free at the SCRSCollision YouTube channel, and the association has content already produced to carry the industry through the end of 2021. Additionally, SCRS has released its newest iteration of the “Kool Tools” series, highlighting tools and unique products discovered during the 2020 SEMA360 online event and compiled by the SCRS Education Committee earlier this year. Available at the SCRSCollision YouTube channel and including appearances by various members of the SCRS Education Committee, the 39-minute video features reviews and demonstrations of a host of industry-related products and services. “Despite being a departure from the in-person gathering process, the team did a really remarkable job in sourcing some really unique and useful products and putting them through the paces in their facilities to identify some of the favorite contenders,” SCRS Education Committee Chair Amber Alley shared in a statement. “Historically, the reviewed items were often personally purchased by [Committee members] Toby [Chess] and Kye [Yueng]. They have typically always put them to use in a working collision repair environment following the show [and] prior to being featured in the presentation. I feel like the Committee did a great job, sticking true to its roots, securing the tools and testing how the products held up and how their technicians liked their usability before committing to including them [in the video].”

June 2021

Embracing the BOT On the technology front, SCRS’ Blueprint Optimization Tool (BOT) continues to grow in application among collision industry end-users. Powered by NuGen IT, the repairer-focused BOT is a Microsoft Windows software application that automates the print version of SCRS’ Guide to Complete Repair Planning. The BOT operates alongside the respective P-Page logic estimating application and analyzes the original repair line information, generating an electronic report that identifies any additional repair operations from the extensive BOT part code list that may have been overlooked. Designed to increase efficiency and consistency in the repair planning process, the tool offers an organized means of identifying and adding missed opportunities by dynamically cross-referencing written estimates against the Guide. According to an update given by SCRS Board member Robert Grieve during the meeting (and as recently reported in Repairer Driven News), a recent association survey revealed that BOT utilization has been seen in all facets of the automotive repair field – from Direct Repair Program facilities and non-DRPs to OEM-certified repair centers and uncertified shops. User feedback indicates results that range from a 25 percent increase in line items on the original repair plan to 10-15 percent increases in average repair orders as a result of capturing the operations being performed at the front-end of the repair process. Addressing the Board, VECO Experts CEO Mark Olson noted a surprising trend of insurers embracing the BOT despite the highercost estimates it tends to generate. Interviews his company recently conducted with various carriers revealed a “shift” in their negotiations with facilities since the BOT’s creation, with many insurers praising the increase in consistency among shop estimators who have embraced the system. Progress with Information Providers As an industry association, SCRS stands in support of OEMrecommended/required procedures as the definitive standard of repair. Recently, the association – in collaboration with the Alliance of Automotive Service Providers (AASP) and other members of the Database Enhancement Gateway (DEG) – reached out to the industry’s major Information Providers to stress the importance

Live and active. BY JOEL GAUSTEN of their products embracing OEM-centric repairs based on vehicle manufacturers’ procedures. In response to these efforts, CCC has updated its Labor Time Premise (bit.ly/CCClabortime) to include the following language: MOTOR recommends a review of the OE service information at the time of estimate preparation to confirm the OE manufacturer repair procedure(s). MOTOR assumes the repair facility is equipped with the necessary tools, equipment and training to complete any given repair following published vehicle manufacturer repair procedures. SCRS Executive Director Aaron Schulenburg credits inquiries and input from Auto Body Association of Texas (ABAT) President Burl Richards and other association members for prompting SCRS’ work with CCC in addressing the language in this update. “I think this is a great example of how local feedback can influence national-level activity. We’re all pulling our oars in the same direction, and it’s important to rely on each other’s support.” SCRS/AASP/ASA Joint Position on Scanning In other news, SCRS recently collaborated with AASP and the Automotive Service Association (ASA) in producing a joint position statement that “acknowledges the act of scanning a vehicle using a qualified scan tool as a necessary and not-included operation that is legitimately expressed on a repair order with either a fixed cost, in labor hours and/or [a] set dollar amount.” Additionally, the statement defines a “qualified scan tool” as “a device approved by the vehicle’s manufacturer (OEM) to provide a repair technician access to the status of the vehicle’s sub-systems. OEM-approved scan tools are specific to each OEM and have the complete suite of capabilities as determined by their service engineering groups.” The complete joint position statement is available online at bit.ly/SCRSscancomp. A Return to Las Vegas With the industry finally returning to live gatherings, SCRS is actively developing content for the 2021 SEMA Show, which will be held November 2-5 at the Las Vegas Convention Center. Most significantly, this year’s Show will see a major logistical change that will move the Collision Repair & Refinish and Tools & Equipment sections and SCRS’ Repairer Driven Education (RDE) series from the upper and lower levels of North Hall to the upper level of South Hall. This move will enable both RDE and the industry-relevant exhibitors to be located on one floor, making for an easier-to-navigate attendee experience and putting all collision repair exhibits under one focused section of the show. RDE presenters confirmed at press time included (among others) Robert L. McDorman (Auto Claim Specialists), Tim Ronak (AkzoNobel), Mike Anderson (Collision Advice), Danny Gredinberg (Database Enhancement Gateway), Lee Rush (Sherwin-Williams), Eric Newell (AirPro Diagnostics), John Walczuk (ZB Claim Services, Inc.) and attorneys Cory King and Patrick J. McGuire. Course topics will include staffing/human resources, utilizing consumer-protection laws to combat claim denials, estimating resources, how to survive the loss of Direct Repair Program (DRP) agreements, future technologies, OEM network participation and more.

“We’re really excited about the fact that we’re going to be able to deliver RDE in person this year and give people the focused experience they’re used to having at a live event,” Schulenburg says. “It was clear at our Open Board Meeting that a lot of industry members want to be back at in-person events. SEMA is going to be the biggest return to normality we’ll see this year.” (Last year’s virtual RDE program is still available at rde.scrs.com through the end of August. SCRS members receive a 20 percent discount on content access.) The in-person SEMA Show will also feature SCRS’ 2021 OEM Collision Repair Technology Summit, an all-day event that will feature panel discussions/sessions devoted to electric vehicles (EVs), vehicle research/trends and ADAS and safety. Plans are also underway to bring back the RDE After-party, which has earned a reputation as one of the week’s can’t-miss industry events. SCRS’ SEMA schedule is set to conclude with the IDEAS Collide Showcase, a series of short, “TED Talk”-style presentations by various collision repair-related subject matter experts. The complete list of IDEAS Collide speakers (as well as additional details on the 2021 RDE series) will be featured in upcoming issues of Hammer & Dolly. New Board and Executive Committee Announced The latest SCRS Open Board Meeting concluded with Board and Executive Committee elections. The association welcomed new National Directors Domenic Martino (Gold Coast Auto Body; Illinois), Andy Tylka (Tom & Ed’s Autobody; Indiana) and Todd Hesford (Community Collision Centers; California), while David Gruskos (Reliable Automotive Equipment; New Jersey), Jeff Kallemeyn (Kallemeyn Collision Center; Illinois), Tony Adams (Weaver’s Auto Center, Inc.; Kansas) and John Mosley (Clinton Body Shop; Mississippi) will continue in their terms on the Board. The newly elected SCRS Executive Committee is comprised of the following: Chair – Bruce Halcro (Capital Collision Center; Montana), Vice Chair – Amber Alley (Barsotti’s Body & Fender; California), Treasurer – K. Michael Bradshaw (K&M Collision; North Carolina), Secretary – Tim Ronak (AkzoNobel; California), Director at-Large – Robert Grieve (Nylund’s Collision Center; Colorado) and Immediate Past Chair – Brett Bailey (Kansas City, MO). Schulenburg publicly announced the election results during the Collision Industry Conference (CIC) held after the Open Board Meeting, adding that the association wished to thank Outgoing National Directors Paul Sgro (Lee’s Garage; New Jersey) and Domenic Brusco (PPG; Pennsylvania) for their years of service to the association. More information on SCRS is available at scrs.com. H&D

Executive Director’s Thoughts It’s so encouraging how much work SCRS is getting done despite pandemic circumstances, and that is felt by us at WMABA – as an affiliate association. We are very active with its programs, and we encourage all our members to also be a member of SCRS and join in the benefits of the national-level group and all the good it is doing for our industry! - Jordan Hendler

June 2021

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June 2021

COLLISION P.R.E.P.

Making sense of dollars.

PREVIEW LOOKING BEYOND “NORMAL:”

A NEW PERSPECTIVE ON LABOR RATES There’s no such thing as a one-size-fits-all approach to determining Labor Rates in the collision industry. In an age of accelerating vehicle technologies and specialization, repair facilities need to take a very serious look at the types of automobiles they’re taking in, the training benchmarks that need to be met in order to work on them and even where in the country their businesses reside. These are some of the critical factors that will be explored at length during “Differentiating Labor Rates Based on Certification, Skillset, Tooling and Training,” a June 9 virtual presentation by VECO Experts CEO Mark Olson as part of WMABA’s Collision Professional Repairer Education Program (Collision P.R.E.P.). In Olson’s mind, shops have reached a crossroads where they must differentiate between what he calls “a normal car using normal equipment with a normal skillset” and vehicles demanding a higher level of training and tooling than the industry has seen in the past. “When you get into vehicles that require specialized tooling, equipment and training, it becomes appropriate to be charging a different rate. For example, to tool up to do aluminum is not a normal cost. “When you’re going to be fixing an Audi, there is training that you have to go to school for,” he continues. “Also, it could cost tens of thousands of dollars just to get certified for welding on a Mercedes-Benz. Initially, you have to send a technician to Germany for two weeks. Obviously, it becomes very appropriate that if you’re doing those kinds of repairs on those kinds of cars, you would charge more money because you have a higher level of training and skillset in the shop. That’s going to be the same when we start dealing with electric vehicles.” So, how do shops come up with rates that adequately reflect these realities? Olson will explore a number of things to consider, including the makes and models the shop is most likely to repair, the real estate expenses in that businesses’ market and the costs associated with the square footage that a shop devotes to specialized services such as aluminum repair. “A lot of shops go, ‘Oh, I’d love to get $150 an hour.’ But how many of those cars are on the road? How many of them are

June 2021

they going to fix? It all comes down to business and what you need to charge to turn a reasonable profit for your investment and be able to fix those vehicles.” Olson will also examine the growing utilization of the Right of Appraisal as a means of settling financial disputes that arise during the repair process. “Obviously, there are going to be disagreements when an insurer says, ‘I have a shop down the street that will work at $50. Why do you want $140?’ When you can’t get past that conversation, then it becomes appropriate to have the consumer invoke the Right of Appraisal. It is a way to get two experts together and get the shop and insurance company out of the continued on pg. 34

COLLISION P.R.E.P. VIRTUAL EVENTS SCHEDULE

June 9 - 1pm EST Differentiating Labor Rates Based on Certification, Skillset, Tooling and Training [Mark Olson, the Vehicle Collision Experts - VECO Experts]

Mechanical, structural, aluminum or certified repairs are all different categories of Labor Rates. Understanding what goes into establishing a rate and billing based on technicians and type of repair performed are all important distinctions for proper repair documentation. Get insight and deeper knowledge into the variable rates in today’s collision repairs. wmaba.com/collisionPREP

WMABA THANKS

YOU

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June 2021

FEATURE TESTING

YOUR TECHS:

A TOOL & EQUIPMENT REALITY CHECK PART THREE Editor’s Note: In our previous “A Tool & Equipment Reality Check” features (in the March and April 2021 issues, respectively), we outlined the need for shops to utilize proper scanning and diagnostic equipment and outlined the levels of tools currently available for this purpose. This month, we explore some of the personnel pitfalls and logistical concerns that need to be acknowledged and overcome before a non-dealer repair facility can successfully implement safe and professional scanning, diagnostic and calibration procedures. It’s been five years since Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA) had the revelation that the aftermarket scan tools at his facility were not meeting the standards needed to ensure safe and proper repairs. Since enlisting the services of AirPro Diagnostics, he has been able to consistently address the technical demands of the vehicles his facility repairs while adhering to appropriate OEM procedures. Dorn’s collision repair facility reached this point thanks in large part to the fact that his business already had a mechanical service department with experienced technicians in place. However, he is the first to admit that even with this advantage, the process of getting his collision shop up to speed with what was needed was far from seamless. “It definitely is a process that takes time. You need to get your employees’ buy-in, and they need to have that moment when this all rings true for them. And we’re still not perfect at it; there are still times when things slip because there are so many moving parts.” Dorn’s words shouldn’t be a shock to any forward-thinking shop owner making similar efforts to ensure correct repairs in 2021. At a time when there’s a new “next big thing” hitting this industry on an almost daily basis, owners and managers are

June 2021

racing to get the right technicians on board to handle the load. Even a collision repairer who was among the best of the best in 2015 – or last month, for that matter – may face a tough learning curve when it comes to embracing operations and techniques that previously fell into the mechanical category. Although he was able to draw from his pre-existing mechanical crew, Dorn predicts that other facilities will quickly reach a point where circumstances will demand an expansion of their employee bases. “There really needs to be a mechanical technician at the body shop. Can you temporarily use a body technician or repair planner? Maybe, but you need technicians who are specifically experienced and trained on the mechanical side. Ideally, they would also have diagnostic experience. That’s tough; it’s no different than trying to find a structural technician who’s been through OEM training or I-CAR training. You’re going to have to build those people.” Josh McFarlin, AirPro’s executive vice president of operations, estimates that only about 10 percent of the collision shops he works with also have a dedicated mechanical service department. When working with the remaining 90 percent, he stresses the importance of getting the right technicians on board – and warns of the potentially grave dangers inherent in shops simply improvising with the team members they already have. “If there’s something with a vehicle that gets into a ground issue or a short of some kind in the wiring, you need somebody who can go in and diagnose that. It’s not going to be your painter, detailer, porter or estimator.” It should come as no surprise, but shops aren’t the only ones struggling to find technicians with both diagnostics and

Tightening the team. BY JOEL GAUSTEN

collision repair experience, as McFarlin reveals that AirPro also faces the same challenge. “In a perfect world, I’d find a technician who is coming out of a collision repair shop and has been doing diagnostic work for that facility. That person doesn’t exist in the available workforce. This hasn’t really been a problem for us at AirPro, because we realized long ago that our ideal diagnostician candidate is someone who has been working at a dealership and has had experience with scan tool based-diagnostics.” With this approach, AirPro has been successful in building an internal workforce with the ability to help its customers better navigate through the twists and turns of today’s scanning and diagnostic requirements. This is a great thing, as it is clear that even the most advanced repair facilities need guidance from time to time. As one example, AirPro recently addressed a call from a shop that couldn’t get a 2020 Nissan Altima front radar to calibrate after multiple attempts on their own. Eventually, the AirPro tech asked the shop to provide a photograph of the vehicle – and soon viewed a radar module and bracket that had been put in backwards. “For whatever reason, the technician didn’t know it was going to cause an issue, but that was a lot of time wasted to get an answer,” Dorn observed after being shown the photo. “If the shop was trying to figure out the issue on its own, how long would it have been before that technician just gave up and moved on?” Naturally, a stumped technician simply signing off on a vehicle in this condition could have devastating consequences for the consumer – and could ultimately put an otherwise good shop out of business. “The level of liability that shops are owning is insurmountable,” he says. “Just because there hasn’t been a giant scanning/ diagnostic-related lawsuit against a shop yet doesn’t mean there’s not one coming.”

Considering the current risks involved in performing proper scans and calibrations, it’s no surprise that many facilities have developed a habit of sending this work off to a dealer. However, McFarlin cautions that this practice is becoming an increasingly costly proposition for many. “I don’t understand how you can be in the collision repair business and not be spending every day trying to figure out how to keep every single piece of that work under your roof.” For some facilities, the solution to this dilemma has been (in McFarlin’s words) “doing the work under your roof but subletting to yourself as much as possible.” Dorn’s operation includes a towing business in addition to its mechanical service side, while Hammer & Dolly is regularly receiving reports from shops considering or already establishing separate facilities for everything from heavy hits to aluminum repair. While this type of expansion could prove beneficial, McFarlin is quick to add a crucial caveat. “If you’re not taking that model and negotiating different rates for those different facilities to sublet back and forth to them, then I don’t know how you’re keeping your head above water.” Beyond financial considerations, shop owners interested in bringing more jobs under their own banners need to understand the importance of constant education. This is not a matter of sending technicians to a few classes and calling it a day; this is an ongoing commitment to receiving and utilizing the most current information available. “Don’t stop training,” McFarlin insists. “The technicians who scare me are the ones who think they don’t need to take additional classes or the new-model training for next year’s vehicles.” Already half a decade into making considerable changes in how he addressed scanning, Dorn acknowledges that his journey has only just begun and will always be in a state of evolution. Looking back on the past years, he has one very critical regret. “I wish I would have researched what I should have known the entire time but didn’t, and I wish I would have acted sooner.” Look for Part Four of this story in an upcoming issue of Hammer & Dolly. H&D

Executive Director’s Thoughts There’s just no shortage of hurdles these days, but to run this race of collision repair, you just have to be vigilant and steadfast. It’s hard, as Josh and Barry have given insight to, but it’s necessary. Signing off on a vehicle that’s been repaired but not run for diagnostics is not a complete repair. That’s not giving the customer back their car in pre-accident condition. It’s much, much worse than that; it’s now looking safe and not being so. Go to page 24, because the next story tells it more so!

- Jordan Hendler

June 2021

COVER STORY

With the trials and tribulations of the last 14 months finally starting to dissipate, it’s time for the industry to start thinking hard about the next 14 years. During the recent Collision Industry Conference (CIC) in Phoenix, AZ (the first in-person industry gathering of its kind since January 2020), members of the CIC Future Disruptions Committee examined what automobiles – and the industry that works on them – might look like in 2035. If you envision yourself still in this profession by that time, then strap yourself in for what you’re about to read. Where We Are Going Imagine a scenario where a telematics-heavy vehicle is stocked with enough microchips, sensors and other technologies to correctly identify what happens to it in a collision and produce data to prevent it from being repaired at a facility that isn’t adequately equipped and

June 2021

trained to take it on. This is what CIC panelist Sean Carey, president of SCG Management Consultants LLC, anticipates will become a reality in the automotive repair world by the time babies born this year start practicing for their driver’s tests. “The 2011 mainstream Honda Accord and a 2025 mainstream Honda Accord are two different animals. A 2035 Honda Accord is going to be a vastly different animal again. So, we have to understand what’s coming and what it’s going to look like.” With the industry rapidly approaching an era where damaged commercial vehicles will be (in Carey’s words) “communicating multiple times per millisecond” about what they need to get back on the road, all industry stakeholders – from repairers and insurers to parts dealers and other supply chain vendors – will have to either adapt quickly (and get along) or simply pack it in and get out of the way of those willing to embrace the change.

Outpacing vehicle evolution.

BY JOEL GAUSTEN

“If you do the right thing by the car – no matter what your stakeholding is in the entire claim process – everybody comes out in a really good spot. But we tend to divert ourselves a great deal on the route to doing the right thing […] We have engineering issues, and we’re trying to solve them using economic solutions. That hasn’t worked; it hasn’t worked for 15 or 20 years now. That’s why we are fragmented and somewhat disorganized as an industry.” This “fragmented” mindset could lead the industry to see shops that are currently taking in as many different makes and models as possible to keep the lights on – whether they have the proper training and equipment or not – close their businesses in darkness by 2035. “We’ll end up with licensed shops that are capable only of repairing certain types of vehicles,” Carey said. “This mainstream [practice of] ‘bring it all in on Monday, and we’ll shove it all out by Friday’ will be a thing of the past […] The data will know exactly what shop is capable of repairing what vehicle, and it will simply just not allow the vehicle to go to an unlicensed shop that doesn’t have the license to repair Model A, Model B, Model C.” That’s 14 years from now, but what about what will happen within just the next four? To get an idea, just take a good look at some of the mainstream stories on major automakers these days. Almost all of them will have “electric vehicles” in the headlines. As just one example, General Motors has driven home its commitment to EVs in a widely covered announcement posted on its consumer-facing website (gm.com/electric-vehicles.html) stating that it “is on its way to an allelectric future, with a commitment to 30 new global electric vehicles by 2025.” While the fact that 2025 is really no time at all from where we are today, Carey suggested at CIC that many automakers could have the capabilities to pull the trigger on these vehicles today. “By the time you’ve heard [about something] in the press, it is developed to pretty much the nth degree.” If that’s indeed the case, then owners and technicians alike need to grasp as much about OEM-recommended/required procedures for EVs as they can. As covered in recent issues of Hammer & Dolly, EV production is set to dramatically expand over the next handful of years, and this growth will lead even the most skilled auto body craftspeople out there to face fundamental changes in how they apply their talents. As CIC Future Disruptions Committee Co-Chair Jake Rodenroth (asTech) observed in Phoenix, “Collision repairers better start focusing on fundamental things like braking systems, cooling systems [and] steering systems, because those will be radically different on an EV […] Things that repairers have assumed for years that they know could be different on [those vehicles]. I can’t think of an OEM right

now that’s not working on an electric platform or at least a mild hybrid.” While more automobiles will certainly be fully electric and loaded with even more telematics and ADAS features by 2035, the jury is still out on whether the vast majority of them will be completely selfdriven as well. Less than a week prior to this most recent CIC, two people in a Tesla – one in the passenger seat, the other seated in the rear – died in a fiery crash in Texas after reportedly utilizing the vehicle’s “Autopilot” capabilities. While the specifics in regard to what the Tesla in question did or didn’t do in these circumstances were still being investigated and debated at press time, Carey stressed to the CIC body that it is only a matter of time before existing issues are perfected and a safe and dependable autonomous vehicle becomes a staple of American roadways. “By 2035, it will be consumer choice whether you drive your car or have it drive you. That’s an inevitability; the capability of the vehicle is there now […] The technology already exists; it’s about market acceptance.” Despite the obvious obstacles that still need to be overcome, Carey was adamant that the trends predicted to appear within the next decade-plus are not just faraway fantasies to be ignored. “The size and scope of what’s to come by 2035, I can’t begin to comprehend.” Why the Industry Isn’t Ready Although it’s clear that automotive technologies will only get more complex as time goes on, the American collision repair community still needs to come to terms with the fact that it is largely trailing behind in meeting the demands that exist right now. Citing figures from CCC Information Services, CIC Future Disruptions Committee Co-Chair Frank Terlep* (Auto Techcelerators, LLC) gave attendees a sobering reminder of the current lack of proper procedures on shop floors across the nation. “Even today, less than 60 percent of vehicles are being pre- and post-[repair] scanned. What’s even more shocking [is that] 12 percent of present-model vehicles are receiving a calibration after a repair. All of us in the room should be scared to death.” Speaking with Hammer & Dolly following the meeting, he shared some possible reasons for technicians’ lack of attention to these needed operations. “They’re not doing it because they think the vehicle doesn’t need it. Also, people in our industry sometimes choose not to do things because they’re not getting paid for it. For example, people don’t do CONTINUED ON NEXT PAGE June 2021

COVER STORY test drives for this exact reason, which is crazy.” Additionally, Terlep identifies a general unfamiliarity with ADAS as another cause for industrywide alarm. “If technicians don’t know what’s on the vehicle, then they don’t know what to do. Also, if we only have x percent of people using repair procedures on vehicles, then the rest don’t know what they’re doing. Third, shops are concerned about not getting paid by insurers for calibrations. Insurance personnel on the local level have no clue about the complexity of vehicles.” Of course, current insurer-prompted cycle times – a concept that has gone from inconvenient to downright inconceivable in light of modern and developing technology – is also driving the crisis. “If you’re sending a vehicle out to the field for calibrations, it adds at least a day or two to cycle time. All of the things I’ve mentioned lead to improperly repaired vehicles being put back on the road.” Terlep’s commentary is especially worrisome when considering the OEMs’ dramatic shift in focus toward the development of new electric vehicles. “I don’t think our industry’s ready for them. There is a very small number of facilities that are qualified to repair EVs properly – and that’s the key word. The shops that repair Teslas are really the only ones, in my opinion. What other manufacturer has a large number of EVs on the market today?” Even with EVs taking center stage in most inter-industry discussions, he believes that it will take a very long time – perhaps

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well beyond 2035 – to see the complete disappearance of combustionengine transportation. “Consumers have to completely buy into EVs to make that happen, and then the manufacturing has to change. There are so many variables. In my opinion, I think 40 percent of all automobiles being EVs by 2035 is a high number. That could happen, but I don’t see traditional vehicles going away by then.” In addition to giving CIC attendees a hard dose of reality by sharing the CCC figures, Terlep opened their eyes to how the accessibility of OEM repair procedures may change over the next decade-plus. He predicted that this information might end up “living with the vehicle” – attainable via cloud technology and identified through the sensors on the vehicles picking up on the damage. “In our Committee’s mind, that just makes sense,” he shared with H&D following his CIC presentation. “If a vehicle needs to be repaired, why not connect the information related to the repair of the vehicle to the vehicle?” While such advancements are still a few years off, they could go a long way in eventually eliminating many of the logistical frustrations surrounding accessing OEM information in the here and now. “The industry has not made it easy for people to get access to easy-to-use repair procedures. Every manufacturer has a different use case for their repair procedures. Every time you go to use Ford versus Toyota versus Honda, you have to become an expert in those CONTINUED ON PG. 28

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COVER STORY

CONTINUED FROM PG. 26

specific repair procedures. It’s not easy, nor is it cheap.” In a world moving faster every day, 2035 will be here before we know it. What would Terlep advise shops to do in June 2021 if they hope to even remotely stay ahead of the changes to come? “If I had a group of 100 shops in a room, I would tell them four things,” he replies. “One, consider opening a calibration center. There are 70 million ADAS-equipped vehicles on the road today. If you add 15 million new cars a year, that means we’ll have 130-plus million of those vehicles by 2025. That will end up being a billion-dollar business, and somebody has to be in it. Second, you need to play in the OEM certification sandbox. Third, whether you like it or not, you need to figure out how to play with virtual claims. Lastly, from a technology perspective, you’re either going to be in it with EVs or not. I think we’re going to eventually see stand-alone EV repair businesses.” The Data Factor Naturally, continual innovations in vehicle designs will lead to a considerable amount of new data flying around – and will likely result in even greater debates over how that information is stored and shared. As one example of datarelated dilemmas in the present tense, CIC continues to investigate exactly how seemingly protected collision repair data is showing up at CARFAX. While the responsible parties have yet to reveal themselves (and there’s a very strong chance they never will), Terlep was quick to reiterate his commitment to customer privacy when asked to state his current position on sharing data with “partners” during a CIC Vehicle Data Access, Privacy & Security Committee panel discussion. “Our ‘partners’ are our customers. The only person we give data back to is the customer who’s a subscriber. We don’t have any third-party companies that would want our data.” Panel participant John Webb (TenPoint Complete) echoed these sentiments on behalf of his company. “Our customers are our customers; [data] doesn’t go anywhere other than that.” “[Customers’] data stays in their vault,” added panelist Rick Palmer of ComputerLogic, Inc. “It’s like writing a check; it doesn’t go out until they say who it goes to.”

June 2021

The Bottom Line Now is not the time for anyone who calls the collision repair field home to stay set in their old ways. The issues explored in this story are only a fraction of the critical changes about to completely reshape how vehicles are manufactured and repaired. Those who missed out on this most recent CIC need to make it a point to be in the room at the next event this July in Cleveland (and other CICs in the future) as topics of this nature are discussed in an open forum. All CIC committee PowerPoint presentations from the Phoenix meeting are available for free at ciclink.com. Have a look, stay educated and get involved.

*WMABA is pleased to announce that Frank Terlep of Auto Techcelerators, LLC will discuss ADAS as well as many of the subjects covered in this story in his Collision Professional Repairer Education Program (Collision P.R.E.P.) seminar, “Collision Repair, 2035: Trends and Technologies That Will Force the Collision Industry to Reinvent Itself,” during AASP/NJ’s 2021 NORTHEAST® Automotive Services Show in Secaucus, NJ this September 10-12. Please visit wmaba. com/collisionprep and aaspnjnortheast.com for updates and to register. H&D

Executive Director’s Thoughts Being at the meetings and hearing these discussions and presentations is eye-opening. It’s also the “crystal ball” everyone wants to have, but not enough people attend. I highly encourage all to participate in as many local and national meetings as they can, not just to hear all the information but to make connections with those who are in the know and can actually assist with getting you ready for these future advancements. Getting in front of it is the only true way to get prepared. Being behind the curve is a frustrating place to live, and most of our industry notoriously does nothing until it’s on the front step. More aptly, if you want to get connected when the car is in the shop, I’m happy to help you in any way I can! - Jordan Hendler

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INDUSTRY

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Why Aren’t People Pulling OEM Procedures? This month, we “ASK MIKE” to share his thoughts on the industry’s lack of adherence to OEM repair procedures. We at Hammer & Dolly hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue. Hammer & Dolly: Obviously, vehicle technology is not going to stop advancing. As a result, repairers need to stay on top of what’s going on with these cars, and pulling the OEM repair procedures is the main part of that. I’ve heard feedback from some shops that are still not enforcing this; they tell me, ‘Our technicians know what to do.’ I’d imagine you’ve been encountering similar statements. How do you respond to that mindset? Mike Anderson: You’re right – most people are not pulling OEM repair procedures, and I’m very concerned about that. Let me start by sharing a short story. My friend’s son went into the Marines several years ago. He got off the bus at Parris Island, and the drill instructor ran up and started delivering shock and awe. He yelled, ‘Single file! Single file!’ Then, he said, ‘Pick up your suitcase! Put it down! Pick it up! Put it down!’ All of a sudden, my friend’s son laughed. That is the worst thing you can do on your first day of boot camp with a Marine drill instructor! The drill inspector grabbed my son’s friend by the ear and pulled him in front of a mirror. He made him point at the mirror and say, ‘I’m not stupid!’ Then, the drill instructor made him point the finger back at his own chest in front the mirror and say, ‘You’re stupid.’ I’m not saying that

June 2021

collision repairers are stupid, but this isn’t a joke – it all starts with us. We all have to take personal responsibility. When somebody doesn’t pull the OEM procedures, it’s usually due to a few things. One, they don’t have access to them. In that case, shame on the shop owner or manager. Number two, they think they’re smarter than an engineer. Number three, they say they don’t have the time because the company they work for chooses to be a DRP and says they have to upload an estimate within two hours. That’s just ludicrous. I do training for several OEMs as well as training through Collision Advice. We show people photos of a vehicle that needs a quarter panel replaced and say, ‘We want you to write an estimate on this.’ I understand it’s a photo, but it’s done as an exercise to see how well they can identify the OEM repair procedures as well as not-included operations. When we do that, we have 385 lines on our estimate, but the top 10 percent of trainees might have 190 to 200 lines on their estimate. The average shop has fewer than 100 lines. I can tell you that just for that one estimate – just replacing a quarter panel on a Toyota – we had 133 pages of information to research, pull, review and read. It’s very, very time-consuming. This wasn’t a 30-minute process – it was a five-hour process. I realize there are some challenges, but to not do it is unacceptable. The other thing that troubles me is that everybody is looking for an ‘easy’ button. You can’t just say, ‘I’ve fixed 20 of these cars; I know them inside and out and don’t have to pull the procedures.’ Things change. I’ve seen sectioning procedures change, and I’ve seen something was a onetime-use part one day but wasn’t the next day. We just can’t assume that because we fixed 20 cars last week that we don’t have to research them today.

Thoughts on the industry’s biggest problem area. Do you have a question for Mike? Contact Hammer & Dolly Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

H&D: Of course, we have a huge elephant in the room. I’ve had readers tell me that if they don’t get paid for something, they won’t do it.

conversations on this topic. It’s being stressed at the Collision Industry Conference (CIC) and elsewhere. What else needs to be done here?

MA: That’s insane! How would you like it if a doctor, a surgeon or someone who works on an airplane said, ‘I don’t get paid for it, so I’m not going to do it’? Don’t forget that the consumer signs an authorization for us to fix their car. If we take that car in under a premise that there’s a signed authorization, we’re saying, ‘You can trust me to do a safe and proper repair.’ You’re liable for that vehicle even if it changes ownership. You’d like to believe that the John Eagle case was a wake-up call, but obviously it wasn’t. People just think they’re too smart for their own good. I teach factory training for OEMs, and I still research every single vehicle that I write an estimate on. If you’re saying you don’t have the time, then you need to have a conversation with your boss. If you’re saying you don’t know how to use the websites – gosh, man, we have free webinars and videos on my website that teach people how to do it. If you’re a Nissan/Infiniticertified shop, you actually have free access – free access – to Nissan/Infiniti’s TechInfo. Toyota offers free access to its OEM procedures to its certified shops. There are resources available; people just need to want to use them. The two percent who are actually doing it right get pushback from third-party payers who say, ‘You’re the only one.’ Well, they are the only one!

MA: Education, number one. We need to educate people on how to navigate the OEM websites, because they’re all different. Number two, people need to have the time to do it. The days of expecting an estimator to handle x amount of sales volume every month are over. The expectations need to be lowered. There’s no way they can achieve that and be thorough in what they’re doing. Body shop owners and managers need to give their employees the right amount of time to do it. Also, insurance companies need to recognize that they’re part of the problem, especially when they want an estimate uploaded in two hours. That’s not realistic. Technicians need time, training and the access to resources. Somebody asked me, ‘Why don’t all the OEMs standardize their websites?’ Well, they all think their way is the best way. You have a better chance of finding world peace than you do getting three different cultures from five different OEMs to agree. I read somewhere that it takes the average human being five to seven minutes to read a one-page technical document. Just to replace that quarter panel I mentioned earlier, I had 133 pages of OEM documents that I had to review and read. There was also the time it took me to find them. There are nuances to a repair; there are multiple pieces to this. Again, there’s no ‘easy’ button. You just have to take the time and quit complaining about it. H&D

H&D: What do you think it’s going to take to get that number up to a respectable amount? We’ve already had the John Eagle case, and there have already been multiple

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). June 2021

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game. It’s two appraisers really analyzing and looking at what it takes to properly repair that vehicle.” Above all, he hopes his discussion will encourage shops to take a broader and more informed approach in how they determine the rates they charge. “The biggest thing that we see is that people don’t do their homework or understand their numbers. They have to understand those numbers so they know the game they’re playing. Some people say, ‘Okay, what can I get away with charging?’ That’s not a good way to run a business. It’s about asking what your investment has been to work on these cars.” To register for this June 9 course, please visit wmaba.com/collisionprep. H&D

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OVER $6.5 MILLION IN FORD & MOTORCRAFT PARTS INVENTORY Wholesale Parts Fax Lines: Ford Parts: 410-574-8389 Acura Parts: 410-461-7916 Honda Parts: 443-549-1274 “...the best in the business! Your professional staff, large inventory, and quick deliveries make my job a lot easier...A first class organization!”

Jim - Collision Repair Shop

To reach ALL parts departments by phone:

410-574-8305 or 1-855-PNP-PART www.packernorrisparts.com

With 58+ daily departures - we provide FREE deliveries to businesses located in parts of Maryland, Delaware, Pennsylvania, New Jersey, Northern Virginia, and Washington DC. Contact us to see if we can deliver to you!

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THE DIFFERENCE IS DEBEER SIMPLICITY The BeroBase 500 Series solvent system is both comprehensive with 60+ toners and versatile with everything from primers to clears. Built for ease of use with a 1:1 mixing ratio, this system is designed for simplicity and with universal thinners to minimize stocking requirements—it’s smart. Suited for a variety of conditions, the BeroBase 500 Series system delivers great color match, great coverage and ultimately, a great finish.

Experience the DeBeer Difference. de-beer.com

Hammer & Dolly June 2021

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