Hammer & Dolly June 2023

DIRECTOR’S

Hard Hits From the Southeast Collision Conference

I love seeing a person’s lightbulb come on, because from there, everything changes.

Sometimes, it’s so dramatic that it looks a lot like someone getting a “hard hit” to the head. Their perspective of the industry - and the issues we all face - completely alters. Sometimes it can be dizzying and overwhelming to go through a weekend of education, where you hear things you’ve never heard before in every session.

What that really is, is the awakening and expanding of your consciousness. Your awareness box just got the sides blown off, and now you know things you can’t un-know ever again.

The entire week in Richmond, VA is captured well in the text of this entire issue. What’s not here are the feelings, the conversations had, the connections made, the lives being changed in front of your face. I know there are businesses that have been making minor adjustments over the past month or two based on what they learned at the Southeast Collision Conference, both from the Collision P.R.E.P. education and from the peers they had a blessed week with!

Since the event, we have had many shops join the association, which is a huge win! They have engaged in our virtual monthly Watercooler Chat for members, and have reached out to ask when another meeting will happen in their area. Rest assured, we are lit up with the same spark and want to keep the momentum going strong. Our board is planning the

rest of our year and upcoming events as I write this, and I cannot wait to share them with you all.

The townhall vibe in all of the events held will be what we capitalize on going forward. It’s that vocal group of colleagues coming together to push in the right direction that will lead to more “hard (head) hits” for fellow shops, and the industry issues we face in our unique region of the country.

I’m so invigorated by the excitement we all felt during and after the Conference, and I know those who didn’t make it will be personally affected by those who did. I believe it was a start of something even more amazing to come.

I was hit hard myself, by how much our industry showed up and invested in themselves the entire week. I was proud, and humbled, by the folks who attended the week as a first-timer. Their step out of faith will be rewarded by how much they were changed in those moments.

This is going to be a lasting effect we all are grateful for, that will impact the future of our entire industry! H&D

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

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

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2023 DUES OPTIONS:

NATIONAL FEATURE

INTERSECTION BETWEEN DOI DUTIES AND COLLISION REPAIR EXPLORED AT SCRS OPEN BOARD MEETING

Departments of Insurance and the collision repair industry operate in “very different worlds, but there’s an interaction where our worlds collide when dealing with insurance companies,” Virginia Commissioner of Insurance Scott White addressed the room filled with collision professionals during the Society of Collision Repair Specialists’ (SCRS) recent Open Board Meeting in Richmond, VA where he was joined by North Carolina Department of Insurance (DOI) Commissioner Mike Causey as they discussed their departments’ duties – and limitations – and shared their thoughts on what issues exist.

Acknowledging that disputes arise based on insurers’ desire to have vehicles repaired at the lowest cost possible, while consumers and shops seek to have cars repaired at the highest standard, White suggested those issues are “fairly rare,” but since he’s the “typical commissioner who doesn’t deal with this every day,” he asked his team if they receive a lot of complaints involving body shops and found that the department receives less than they did five or 10 years ago. Those complaints are often related to labor rate, aftermarket versus OEM parts, the differences between refinish and blending and issues over diminished value.

“The insurance industry is highly regulated; if you don’t believe us, just ask the insurance companies,” White insisted without a trace of irony in his tone. “Personal line, private auto and homeowners – we spend a lot of time regulating this aspect of our authority because this is where a lot of issues arise. There’s a bigger imbalance between a consumer battling a big insurance company versus someone who has commercial insurance who has more sophistication and resources to fight the company if there’s an issue.”

So, how does the VA Bureau of Insurance (BOI) assist in ensuring that insurance carriers are behaving fairly? White examined the standards his department uses for determining whether a company is acting appropriately. While the BOI does not regulate the cost of insurance, it focuses on ensuring that affordable coverage is available, that claims are paid out according to policy terms and that carriers are behaving fairly, all in the name of regulations designed to protect consumers. In discussing his state’s Unfair Claims Practices Act, he assured attendees that there’s an anti-steering provision in place, a prohibition on capping paint and material costs and a

requirement that all carriers include the same provisions which prevents any insurer from removing Right to Appraisal from their policy.

White admitted that he has heard shops raise concerns related to the fact that insurance companies are required to pay no more than the prevailing competitive rates; however, he stressed that the BOI does not have “the authority to adjudicate individual claims or act like a civil court that forces the company to pay a claim it doesn’t believe it owes…It’s not considered a violation unless it’s considered a general business practice.” Moreover, the BOI defines it to be “a general business practice if it occurs seven percent of the time in a sampling of complaints.”

Although White continued by citing a long list of things that the BOI cannot do, he emphasized that his team is “very successful in holding the insurers’ feet to the fire.”

Noting that it’s tough to deal with frustrated consumers, he offered some suggestions on how collision repair facilities can help consumers, beginning with communication, ensuring claims are complete and accurate and helping them understand unfair claims regulations.

Boasting decades of involvement with the auto body industry, Causey explained that his political career began with his attempts to help associations petition for help addressing complaints against insurers’ unfair practices. Noting that his state’s DOI has similar responsibilities and limitations, he acknowledged, “Insurance companies are creative about getting around state statutes.”

Since being elected to his position, Causey has set up task forces to listen to body shop owners’ concerns to change things a little at a time. His team conducts investigations into carriers’ market conduct to find patterns of misbehavior, and he urged shops, “If you have evidence of insurance companies doing things they shouldn’t do, bring it to us, so we can have our market conduct and criminal investigation teams look into it.”

During an open Q&A session with the Board and audience, WMABA Executive Director Jordan Hendler suggested there’s a “gross disparity between what happens in the marketplace at the shop level and what makes it to [the commissioners] when it comes to insurance companies’ practices. Consumers have options they’re

unaware of, so there’s lots of room to educate both consumers and shops, so we can do a better job of educating the consumer on proper processes and parts to fix the vehicle properly, and here’s the invoice. And if the consumer can’t get the insurance company to cover that, they’re left in civil court to pursue the difference. It’s important to follow up on these conversations, because we are seeing daily issues, so the fact that you guys aren’t getting complaints is not indicative of the problem we’re seeing in the marketplace.”

Suggesting that an increase in premiums would reduce pressures to protect profit through claims practices, WMABA Board member Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA) offered the opinion that “the cost of insurance needs to go up due to how technologically advanced vehicles are now. Keep in mind that the consumer wanted these features, and the government is even mandating some of this now. The average cost of a new vehicle is $65,000, so who didn’t think the cost of repairs would also go up? Premiums should increase accordingly.”

Referencing White’s earlier commentary on prevailing rates, WMABA Board member John Shoemaker (BASF) asked how the industry can learn more about the surveys which “insurance companies conduct and then just dictate that these are the ‘prevailing rates,’ but we never see the results of these surveys.” He also suggested that shops’ rates should be based on each individual shop’s actual costs.

“Who’s doing the surveys?” White asked, and SCRS Board Vice Chair Michael Bradshaw (K&M Collision; Hickory, NC) quickly answered, “Nobody is really doing the survey” to the audience’s laughter and applause.

Bradshaw elaborated that State Farm is the only carrier conducting a survey in North Carolina. “They actually send out a survey to shops, but it’s super convoluted, because they take the results of that survey, and then they use some crazy mathematical formula that basically takes out all the shops that are operating on the higher end of the spectrum and just remove their data from the survey so they can get the artificially suppressed data that we all know they’re utilizing.

“Nobody is surveying shops,” he stressed, noting that when he asks estimators and managers up the ladder where the rates come from, “The response we’re given is, ‘Well, we go into shops, and that’s the rate they’ll take.’ That’s not a survey because there’s no statistical data. There’s no minimum requirements for equipment or training; it’s simply

Can the DOI actually help shops and consumers?

BY CHASIDY RAE SISK

the amount some shops accept, and I think that’s the biggest part of the frustration within this industry.”

During the SCRS Open Board Meeting, SCRS also announced the results of the prior day’s election, congratulating incumbent Board member Tony Adams (AkzoNobel) and welcoming two new Board members: Michael Giarrizzo Jr. (DCR Systems) and Andrew Batenhorst (Pacific BMW Collision Center). “We couldn’t have a better Board,” boasted SCRS Executive Director Aaron Schulenburg, urging attendees to “surround yourself with people who fight for you in rooms you aren’t in.”

Schulenburg also shared some changes to the SEMA 2023 agenda, including the decision to start the week with IDEAS Collide, and he praised KECO’s ongoing PDR system donations to schools’ collision repair programs, noting, “When students get to see that the industry is giving back while they’re in school, it changes their perception of what this industry is.”

Bonnie Coleman (OEC) provided a sneak peek at an upcoming update to the Blueprint Optimization Tool’s (BOT) reporting system which will allow for enhanced data exporting and the ability to drill down to the estimate and estimator levels. This will provide users with a greater ability to document return on investment as well as ways to better utilize BOT to its fullest potential.

During Schulenburg’s update on SCRS members programs, Bradshaw provided a testimonial on how the healthcare plan “offers better coverage and gives shops more ability to compete with other industries.” Scott Broaddus (Virginia Asset Management) lauded the benefits of the 401(k) plan, and Danny Gredinberg (Database Enhancement Gateway) shared details on the DEG’s recent revamp (more details were provided in last month’s Hammer & Dolly, available at grecopublishing.com/hammer-and-dolly-may-2023) and emphasized the importance of shops taking advantage of this free resource. “A 0.2 hour change for you today can impact all the shops tomorrow…It’s a change for the entire industry!”

As Schulenburg discussed industry issues, he mentioned a recent discovery that the end user license agreement (EULA) in some diagnostic tools contain some concerns that shops should be aware of, especially as it relates to some states’ privacy laws. Stay tuned for an in-depth exploration of this topic in an upcoming issue of Hammer & Dolly. H&D

Past SCRS Chair Lou DiLisio (far right) swears in the incoming Board of Directors. Pictured L-R: Dave Gruskos, Rob Grieve, Kris Burton, Michael Giarrizzo Jr., Andew Batenhorst, Michael Bradshaw, Tony Adams, Andy Tylka, Todd Hessford, Amber Alley, Erin Solis, Dominic Martino.

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EV SAFETY, SUPPLEMENTS AND REPAIR PLANNING TAKE THE STAGE AT CIC

“We’ve got a problem in this industry, and that problem is that we collectively suck!” Chairman Frank Terlep opened the most recent Collision Industry Conference (CIC), held in Richmond in conjunction with other industry meetings. “We’re only scanning 50 percent of the vehicles we repair? With 40 to 60 percent of vehicles being ADAS-equipped? We’re only putting calibration lines on 10-12 percent of repair orders? We’re putting people in cars that aren’t being fixed right. We have to fix this sh#t right because it’s our responsibility to take care of the consumer and the consumer’s car!”

Issuing a challenge to the industry to come up with a standardized process to validate that ADAS works before returning the consumer’s car, Terlep proposed a seven-step process:

1. Identify and document all ADAS safety systems on every vehicle.

2. Inform and educate every consumer about their vehicle’s ADAS systems.

3. Perform and document a pre- and post-repair scan on every vehicle.

4. Prepare and document OE procedure research on every vehicle.

5. Complete a detailed repair plan on every vehicle.

6. Document all actions and tasks related to required calibrations.

7. Complete and document an ADAS safety system verification test on every vehicle.

Terlep’s concerns about how often ADAS calibrations are performed resulted from a survey conducted by the Insurance Institute for Highway Safety (IIHS).

As Sean O’Malley of the IIHS delivered a special presentation to provide an “IIHS Update on the Testing of EVs and ADAS Calibrations,” he explained how the program’s crash tests have evolved over the decades, beginning with front crash tests into flat walls and evolving into side crash tests that are more reflective of real-world conditions.

Although crash avoidance features are increasing in popularity, O’Malley noted growing confusion around the repair process for these ADAS features and reported that many vehicle owners indicated issues with their systems following a repair, with many features requiring more than one repair. As the repair process becomes more complicated, he suggested solutions to simplify it, such as establishing affordable and accessible centralized databases with repair and calibration specifications and instructions for all relevant makes and models as well as implementing selfdiagnostic mechanisms to alert when a technology is malfunctioning.

Since 2011, IIHS has crash tested 56 EVs with 87 percent receiving a rating of good, while six vehicles received an acceptable rating. Only one vehicle was rated poor, but that rating actually had nothing to do with it being an EV. O’Malley explained the precautions that are taken when crash testing EVs, such as monitoring temperature, voltage and isolation. “We prepare the vehicle for the crash by tapping into the high voltage battery cables to monitor the voltage and determine if it shuts off after an airbag deployment. We measure polarity and ensure no isolation, and then we look for any temperature increase.”

IIHS always conducts the test at a 12.5 percent (give or take a couple percentage points) state of charge, never at full charge, and no one is permitted to touch the vehicle until a technician wearing full PPE checks the battery isolation and provides approval. IIHS keeps the fire department on hand for every test conducted on a vehicle with a lithium ion battery, and following a test, the vehicle is stored in a shed for a minimum of two weeks, far away from anything else in case it catches on fire.

One large concern with EVs that still needs to be explored is simply the mass of these vehicles. For example, a 2023 Honda Civic weighs 2,877 pounds, while a 2023 Rivian R1S weighs 7,068 pounds! “Moving mass is a big deal; kinetic energy is what will hurt people,” O’Malley clarified. “That gives the Rivian 60 percent more energy than a Civic moving at the same speed, so it’s going to just tear through everything else! EVs will start killing people; there’s no doubt about it!”

The potential dangers of EVs were explored further during the Emerging Technologies Committee’s panel on the “EV and Hybrid Vehicle Intake Process,” which began with an image of a car which caught fire at 5:30am because the 12 volt and high voltage systems were live; neither a risk assessment nor an EV intake process was conducted when it was towed to the collision repair facility. “What went wrong, and how could this be avoided?” asked moderator Dirk Fuchs (I-CAR).

“There’s a gap between best practices and standards,” explained Dalan Zartman of the Energy Security Agency (ESA). “We fill that gap by creating a bridgeway for standards to be applied to all the different industries [in the chain of EV custody], but if you don’t make rules that can be interpreted and applied to end users, you have a huge problem. Risk reduction starts with everyone in the chain of custody; everyone holds a piece of responsibility within this puzzle.”

ESA works to educate first responders, firefighters and police

departments about how to make EVs and hybrids safe before the tow company ever touches the vehicle, and the agency has developed a system with green, yellow and red placards providing specific guidance about the vehicle’s current situation. “If it’s handled properly through these steps, it gives the collision center critical data points: It’s already been identified as an EV hazard, and that hazard has been qualified which lets you determine how you’re going to store it and how long it needs to be quarantined,” Zartman explained.

“Small measures of intervention that follow the manufacturer’s best practices negate the vast majority of the events that we see in storage yards, in handling procedures and interaction procedures with these vehicles,” he stressed. “Taking the time to apply the right steps at the right moments negates a huge quantity of the risk and liability and eventual hazards we see take place.”

“We have to define a process, and then we have to educate everybody to know how to deal with this,” Fuchs agreed.

Disconnecting both the low voltage and high voltage systems is imperative to the intake process, but even after those disconnections, it’s important to recognize potential hazards and follow isolation recommendations.

Zartman discussed proper use of thermal imaging cameras, noting, “It’s not about the temperature point. It’s about the temperature trending and temperature hotspots.”

The industry needs to learn more about EVs, according to Fuchs. “We can’t suck when it comes to EVs. It’s too dangerous. We have to perform the right thing and make an intensively deep-dive diagnostic. That’s the only thing that prevents us from a disaster.”

“The Supplement Challenge” presents the opportunity for disastrous interactions between insurers and repairers, according to the Industry Relations Committee. “Most every claim has at least one supplement,” pointed out committee co-chair Jim Keller (1Collision). “The question isn’t ‘will there be a supplement’ but ‘how many supplements will there be’?”

Multiple supplements cast both shops and insurers in a negative light with consumers, and it’s only gotten worse over the past several decades, creating morale issues for shop employees and throwing processes out of sequence. “Negotiation may have made sense prior to vehicles being disassembled and researched, but it makes no sense

today,” said panelist Michael Giarrizzo Jr. (DCR Systems), insisting, “There has to be a better way.”

From the rental car company’s viewpoint, supplements have an immediate impact to the customer’s rental approval, according to Margaret Owen (Enterprise Rent-a-Car). “The rental authorization needs to be updated, and the customer might face additional fees that need to be paid out of pocket. Customers aren’t familiar with this process, and it can be traumatic, especially since there’s cost and stress associated with it.”

Offering a perspective from an independent appraiser, Phil Langley (SCA Claims Service) pointed out that his company also takes a loss when supplements are required since they get paid per appraisal, and he urged everyone to “embrace a collaborative approach to get to the finish line, which is a quality repair in line with procedures and safety. We’re all just trying to do the same thing: put the vehicle back in its safe, pre-loss condition.”

“There’s only one way to fix the car, and that’s the right way,” Terlep agreed, issuing a challenge to the committee to figure out a standard process to share with the industry nationally.

Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA) suggested that part of that process should “identify who the repair professional is. We spend hours developing a repair plan and are required to document everything we do, but that should be a two-way street when there’s a denial. It would be beneficial for all of us if other industry stakeholders documented their refusal to pay for certain operations.”

The value of proper repair planning carried over into “Jack of All Claims, Master of None,” as Danny Gredinberg from the Database Enhancement Gateway (DEG) questioned the difference between a shop’s repair plan and an insurer’s estimate.

“The damage dictates the repair, and if a shop adjusts the repair plan procedures based on the carrier at play, that opens them up to a mountain of liability,” according to Andrew Batenhorst (Pacific BMW Collision Center).

“From a legal perspective, there’s a right and wrong way to fix a car,” agreed Erica Eversman (Automotive Education & Policy Institute). “When it comes to companies that you don’t have the best relationships with, the customer needs to see that you’re always

continued on pg. 28

Panelists discuss “The Supplement Challenge” (pictured L-R: Barry Dorn, Michael Giarrizzo Jr., Margaret Owen, Phil Langley & Roger Wright)

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.

BY CHASIDY RAE SISK

GROWING TOGETHER: 2023 RECAP

Collaboration and community amongst collision repair professionals is vital in this ever-changing industry, and in April, repairers in the southeast witnessed a revival of sorts during Industry Week which began in Richmond with meetings of the Society of Collision Repair Specialists (SCRS) and the Collision Industry Conference (CIC) before heading a few miles north to the Meadow Event Park in Doswell, VA for Virginia’s first-ever trade show, the Southeast Collision Conference (SCC)!

WMABA partnered with the Carolinas Collision Association (CCA) to host the second annual SCC, offering two days of networking, exhibitions and education via WMABA’s Collision P.R.E.P. (Professional Repairer Education Program) classes which

featured a host of the industry’s leading trainers.

“With the entire week of industry events in Richmond, including CIC and SCRS meetings, the Southeast Collision Conference following just afterwards went beyond expectations,” shared WMABA Executive Director Jordan Hendler. “Bringing the entire regional industry together, with many from across the country joining in too, to take part in the educational opportunities and tradeshow was a win for all those who made the effort to come.”

“Starting off our Collision P.R.E.P. educational sessions was Mike Anderson’s class, ‘Be Extraordinary!’, which drew more than 200 attendees who showed up hours before the show doors opened to hear what it means to stand out above the crowd,” she added. “Every

A collision revival.

speaker we had – from John Shoemaker, to Rick Miller, to Michael Bradshaw – gave their all, and the attendees were so engaged the entire weekend. The panel discussions featuring dialogue from experts about electric vehicles and then repairer-to-repairer insights were both very impactful to the audiences.”

Although the training agenda certainly stirred up a lot of excitement, the trade show aspect of the event certainly turned some heads as well with dozens of local and national vendors showcasing their latest tools, products, equipment and services on the market to the shop owners, technicians, painters, estimators, suppliers and other industry professionals in attendance.

“The Conference had over 50 exhibits featuring local and national vendors, with a wide variety of products and services to connect with for collision business solutions,” Hendler pointed out. “There were even vendor attendees to education events, so they can gain further awareness of the issues their customers are facing in today’s marketplace.”

“SCC 2023 was a great opportunity to meet with shops from the southeast region who are actively working on their business and not just in their business,” offered Josh McFarlin (AirPro Diagnostics). “I had the great opportunity to present a Collision P.R.E.P. class on keeping calibrations in house, and it was well attended with shops that are asking all of the right questions and looking to make sure they are fixing the cars correctly and completely.”

“The conference is such a great event for the industry to come

together,” noted Brandon Lowder (Accudraft). “The educational and networking opportunities for shops, suppliers and partners was fun and rewarding.”

“The fact that it was immediately after CIC allowed us to have time with the industry’s top movers and shakers,” said Kurt Lammon (Polyvance). “It appeared there were plenty of great educational opportunities.”

For James Rome (Rome Collision Management System), “It was great to attend and meet with industry leaders and develop new connections within the collision industry! Being able to hear feedback from many different operators about the challenges they go through helps vendors like me innovate to make them more effective and profitable.”

“The Southeast Collision Conference was a phenomenal opportunity to promote the Opus suite of solutions and engage with such a wide range of people from every market segment and size, while answering questions as to next generation solutions and advancement on collision/mechanical diagnostics, programming and calibrations,” according to Scott Clemson (Opus IVS-US). “It is first-rate events such as this that allow our team to look into the daily issues adversely impacting the collision and mechanical industry, educating our product engineers to design solutions that answer these needs. Opus can attribute our phenomenal growth, adoption and success to the partnership created by and at these events.”

KECO Body Repair Products engaged in a surprise

WMABA & CCA CELEBRATE THE BEST OF THE BEST AT SCC KICKOFF RECEPTION

The 2023 Southeast Collision Conference (SCC) commenced on the evening of Thursday, April 13 with a kickoff reception and awards ceremony to honor those who go above and beyond when it comes to honesty, integrity and dedication to safe and proper repairs.

“Our industry doesn’t have a true hall of fame, so this is the only way people of excellence will get recognized,” WMABA Executive Director Jordan Hendler said.

Carolinas Collision Association (CCA) Executive Director Josh Kent agreed, “For us, it is very important that we recognize the men and women who put their heart and soul into this industry.”

Emcee Jeff Hendler started the evening off by stressing the value of associations, listing the many collision repair organizations that have been founded over the years as a way to identify solutions to the industry’s problems. “We’ve been fighting for so long to get

things done, and how do they get done? They get done in rooms like this. They get done when people show up, begin to understand the problems and understand solutions and start to expound upon them.

“I challenge you to get involved with associations,” he urged. “Surround yourself with people who will fight for you in rooms you aren’t in. You have to get involved and do more. Get in the game, and get your uniform dirty. Now, let’s celebrate the people who are stepping up and stepping forward to help the industry get better.”

“Revolution is coming, whether we like it or not, but what this industry truly needs is a revival,” Jordan Hendler said as she took the stage with WMABA President Steve Krieps to present the association’s inaugural awards to the following:

• WMABA 2022 Board Member of the Year:

John Shoemaker (BASF)

• WMABA 2022 Most Improved Shop of the Year:

Rosslyn Auto Body (Alexandria, VA)

• WMABA 2022 CSR of the Year:

Angela Ramirez (Dorn’s Body & Paint; Mechanicsville, VA)

• WMABA 2022 Tech of the Year:

Mike Murphy (D&V Auto Body; Sterling, VA)

• WMABA 2022 Painter/Refinisher of the Year:

Edwin Rivera (Tyson’s Corner Collision Center; Vienna, VA)

(L-R): WMABA Board members Steve Krieps, Kris Burton, Phil Rice, Barry Dorn and John Shoemaker.

demonstration on the show floor when Jake Rodenroth (Lucid Motors) drove over with an electric vehicle. “The vehicle displayed a noticeable door ding, prompting KECO’s Danny Hacker to step forward and utilize the L2E system to fix the dent in front of the crowd of onlookers,” recalled Scott Stayon (KECO Products). “Danny was able to effectively demonstrate the advantages and effectiveness of GPR techniques on EVs with no need to power down the Lucid.

“As the industry continues to evolve, KECO Body Repair Products remains dedicated to providing the least invasive method of collision repair to increase efficiency and effectiveness,” he continued. “By attending events such as SCC, KECO can connect with technicians, listen to their feedback, and ensure the innovations never stop. Our participation in SCC reinforces our commitment to the industry and continuously improves our product offerings. The passion of people in the collision industry fuels KECO’s passion to provide the best options available for less invasive and successful collision repair.”

Return exhibitors were especially pleased with this year’s event.

“Chad Smith and I had a great time meeting new friends and catching up with old ones,” stated Laura Gay (Consolidation Coach). “SCC attracts such a great group of industry folks for sure. The event just keeps getting better each year.”

“We were honored to be able to support the show for the second year,” Erin Solis (Certified Collision Group) contributed. “The combined Awards Banquet was great! CCG was able to make some very beneficial business connections in all the markets represented. It was

really great to see so many shops and their employees be recognized for all their hard work and commitment.”

CCA and WMABA expressed gratitude to the sponsors who made SCC 2023 possible, including Platinum Sponsors: Autotality, BASF, BETAG North America, Shopfix/BRCC, Connected Automotive Systems, John Bean and Lombard Equipment; Gold Sponsors: AkzoNobel, Axalta, Caliber Collision Centers, Certified Collision Group, Enterprise, FinishMaster, NCS/Single Source, Pinnacle Collision Equipment and PPG; Silver Sponsors: Accudraft, ALLDATA, Auto Shop Solutions, Capital Collision Equipment, Hertz, Intrepid Direct Insurance, OEConnection, Opus IVS, Polyvance, ProColor Collision, Reliable Automotive Equipment and Spanesi Americas; and Education Sponsor AirPro Diagnostics.

“My favorite part of the SCC, or any educational event for that matter, is when you see the lightbulb within a shop person turn on for the first time,” Hendler noted. “We had many first-timers attending, and for them, it was their first endeavor at a tradeshow or multisession education event. Seeing their wheels turning and hearing their testimony of what it was they learned, is exactly what WMABA is here for. It’s what I’m here for. That’s what makes all the hard work and effort of so many worth it. Even if just one lightbulb turns on, the whole world is brighter for it!”

“This event was a huge success, and being able to collaborate with WMABA was crucial in this effort,” agreed CCA President Kyle

continued on pg. 28

Next, Kent took the stage with CCA President Kyle Bradshaw to recognize the association’s award recipients as follows:

• CCA 2022 Board Member of the Year:

Bryan Harrell (Port City Collision; Wilmington, NC)

• CCA 2022 North Carolina Shop of the Year: Relentless Collision (Raleigh, NC)

• CCA 2022 South Carolina Shop of the Year: Dents and Dings LLC (Rock Hill, SC)

• CCA 2022 Repair Planner of the Year: Tom Flowers (DCR Systems)

• CCA 2022 CSR of the Year:

Christine Zelez (Bodyworks Plus; Charlotte, NC)

• CCA 2022 Tech of the Year:

Wil Weymouth (Sudden Impact Collision & Mechanical; Salisbury, NC)

• CCA 2022 Refinisher of the Year:

Kimberly Taylor (High Tech Collision; Liberty, NC)

• CCA 2022 Detailer of the Year:

Ron McGuire (Dale Earnhardt Chevrolet Collision Center; Newton, NC)

• CCA 2022 Manager of the Year: William Barkley (K&M Collision; Hickory, NC)

Celebrating the award recipients at the banquet was Bradshaw’s favorite part of SCC 2023. “These individuals are the backbone of our industry and work tirelessly to lead by example at their respective

organizations,” he said. “Too often, we let days, weeks, months and years go by without recognizing someone or simply telling them thank you – and these awards do just that. Being able to give back to those who give tirelessly to their craft and our industry is so rewarding and my favorite thing that CCA is able to take part in.”

Stay tuned for spotlights on WMABA winners in future issues of Hammer & Dolly, where we will be learning more about these amazing individuals and businesses within the association family! H&D

2022 WMABA Board Member of the Year John Shoemaker.

Steve Krieps (left) presents Kris Burton with Most Improved WMABA Shop of the Year award for Rosslyn Auto Body (Alexandria, VA)

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COLLISION P.R.E.P. BRINGS NATIONAL-LEVEL EDUCATION TO THE SOUTHEAST COLLISION CONFERENCE

From estimating to certification, evolving technology, real-world repair experience and everything in-between, WMABA’s Collision Professional Education Program (P.R.E.P.) provided attendees with unforgettable training and educational opportunities. Read on for takeaways from this year’s impressive slate.

BE EXTRAORDINARY!

As SCC 2023’s Collision P.R.E.P. slate kicked off, hundreds of industry professionals gathered outside the Meadow Event Park in Doswell, VA for a chance to learn how to “Be Extraordinary” from industry icon Mike Anderson (Collision Advice). Indicating that it’s no longer enough to be average in today’s collision repair industry, Anderson encouraged shops that want to dominate in 2023 and beyond to become extraordinary in how they market their OEM certifications, in the customer experience, in researching OEM repair procedures, in being the employer of choice, in having a great culture and in embracing ADAS and calibrations.

The number one question Anderson gets asked is, “Should I renew my OEM certifications?” to which he responded with a resounding “YES!” Explaining his belief that certification is vital for shops in the future, he shared his expectation that the industry will soon move toward an OEM subscription model of ownership, but he warned shops against the false assumption that getting certified will

automatically bring customers to their front door. “Many shops expect work to show up at their door just because they’re certified, but you have to put the work in, position your OEM certifications and leverage them to the best of your ability.”

Today’s customers have a trust-but-verify mentality; they want social proof that a business can be trusted, so spending more time with them up front to establish value creates a more positive customer experience. “People are more afraid of making a wrong decision than they are of spending money,” Anderson stressed. “You need to convince them that you’re the best choice to fix their car, that they’re making the right decision.”

He also recommended that shops focus on building culture. “You want people who don’t just love their jobs; they love your organization. Think of yourself as a sports team…would people want to wear your jersey? Everyone has cars, but not everyone has people. These days, it’s about who gets the people.

Mike Anderson

“The goal is definitely to repair that vehicle to its pre-accident condition, and we want to make sure our customers are taken care of, so it’s really important that we research OEM procedures every single time,” began Danny Gredinberg of the Database Enhancement Gateway (DEG) during “Repair Planning Resources: Write Your Strongest Sheet.” “It’s not a question. It’s not up for debate. It’s what must be done on every vehicle, so let’s go ahead and get our sheet together.”

Examining some obvious items that are commonly missed from estimates because the time isn’t in the estimating databases, Gredinberg explained how to use the DEG to create a database inquiry, walking through multiple examples of inquiries that have benefitted the entire industry. “Who has time to sit on hold with CCC, Mitchell or Audatex for hours? I do! I’ll get it resolved, and you can add the

Making Estimating Data Great Again! Organization + Process = Profitability

“In these challenging times of supply chain issues and employee productivity, having a process that is simple and effective is the key to success,” Mark Olson (VECO Experts) kicked off his presentation as he dove into the differences between the four generations that are actively in the workplace.

Baby boomers were born between 1946-1964, and their strong work ethic has caused many to avoid retirement. Gen X (born 1965-1980) is described as “resourceful, independent, and keen on maintaining work-life balance.” Born 1981-1996, millennials grew up with technology and crave work-life balance, expect collaboration and want to keep learning.

Some older Gen Z (born 1997-2012) have entered the workforce, and according to Olson, “They’re the most diverse and best- educated generation thus far. This is the generation that’s grown up through a pandemic, social media, climate change urgency and political divisiveness.

“Different life experiences create generational sub-cultures,” he added.

“A culture that has been shaped by the

DEG inquiry number to your repair plan as a line note. Make sure you’re telling the story of why you’re modifying a manual entry and link it to the inquiry itself.”

The DEG also contains links to p-pages that shops can utilize. “It’s all about the facts, not an opinion. Let’s get paid for what we do, nothing more or less…Let’s make estimating data great again!”

Gredinberg was joined by Scott Ayers of the Blueprint Optimization Tool (BOT) who demonstrated how the BOT can “help build a workfile of non-included operations that help you get the point across the insurer and also ensures you’re performing an accurate repair. It helps you explain why you need to use this particular operation during your repair plan and during the repair process by providing something to show adjusters to help them understand that this is something the OE requires.”

values of one generation isn’t necessarily going to be compatible with the next generation. Also, people that did not grow up in the United States are going to be shaped by different environments, so tendencies may not be age-dependent.”

Because of those variances, Olson explored how personality testing, such as the DISC assessment, may be a better way to determine employee fit. The DISC profile details a person’s dominant traits within four categories: analytical (who wants facts, figures and proof), driver (who wants it done now), amiable (who wants to make sure everyone gets along) and expressive (who wants it to be fun).

“Not everyone fits into one category 100 percent,” Olson pointed out. “The population is roughly divided equally in all four groups – so it is highly likely that most companies have one of each or more.”

Examining the value of standard operating procedures, he welcomed audience participation in an astute demonstration of the various ways to make a peanut butter and jelly sandwich, showing that a little creativity can go a long way.

Mark Olson

Scott Ayers

Danny Gredinberg

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Are You Ready for the EV Evolution?

Electric vehicles (EVs) are on the horizon – whether your shop is prepared or not! A highlight of SCC 2023 was a panel on “Preparing Your Shop for Electric Vehicles: Repair Strategies and Vehicle Management,” which featured Jake Rodenroth (Lucid Motors), Mark Allen (Audi America), Kelly Logan (Rivian) and Michael Bradshaw (K&M Collision; Hickory, NC), moderated by Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA).

The biggest challenge for many shops when it comes to getting ready to repair EVs is the amount of training required, but according to Allen, who stressed the importance of researching OEM repair procedures on every single vehicle, “If you’re not learning every day, you’ve got the wrong culture in your business. Make sure your folks have a foundational knowledge and build from there.”

Dorn agreed, “Training is not a destination; it’s a journey at which you’ll never arrive.”

Since Lucid doesn’t have dealerships, their certification model is a little different than other manufacturers. “We don’t certify the brick and mortar; we certify the people,” Rodenroth explained. “They’re a reflection of us…Do they believe in the company message because that ultimately reflects on the work? You can buy the tools and take the training, but if you don’t believe in the message, you’re not going to

complete the mission. I need warriors.”

As a newer company, Rivian is still developing its repair procedures, but Kelly pointed out that vehicle sophistication has significantly enhanced over the past decade with all models, not just EVs. “EVs are safe to work on as long as you know what you’re doing, but you can’t be complacent when it comes to working on EVs; you need to research OEM repair procedures and to receive the right training. But that’s on all vehicles, right? Everyone has seen the sophistication of vehicles in the last 10 years…It used to be easy to fix cars because you could pretty much apply a similar repair methodology to most vehicles, but you can’t do that anymore. You have to research these procedures and access that information every time because those procedures can change.”

While all vehicles are undoubtedly more complex, EVs definitely pose different risks than internal combustion engines. “As an industry, we’ve done a really poor job of investing in the training, tools and equipment we need, but if we do that with EVs and take them into the shop, we’re putting technicians’ lives at risk!” Bradshaw warned. “The average repair order is $3,200; is that really worth a tech’s life? We need to recognize that there are cars we aren’t equipped to work on and just move those cars down the road to a shop that is better prepared.”

Opening and Operating an ADAS Services and Calibrations Business

With more and more ADAS-equipped vehicles entering the marketplace each year, shops may want to take advantage of the numerous opportunities by learning “How to Open and Operate a Successful ADAS Services and Calibration Business,” it’s also important to be aware of the challenges and operational requirements before taking on such an endeavor, as Frank Terlep (Opus IVS) explained at SCC 2023.

It’s easy enough to see the opportunities since predictions indicate that over 75 percent of vehicles will be ADAS-equipped by 2030, but what are the challenges? Location, equipment, personnel and training! According to Terlep, “Around 80 percent of repair facilities do not have the space to properly perform ADAS calibrations, which require targeting systems, diagnostic tools, alignment systems, vehicle lift and more, with several options for each type making this even more complicated. Additionally, the auto and collision industries are already having issues recruiting ‘core’ personnel.”

A lack of business processes, the inability to properly identify ADAS technologies and required calibrations and the fact that most shops do a poor job of properly validating and documenting a vehicle’s ADAS systems led Terlep to one conclusion: “We suck!”

To improve and actually run a successful business, he offered a multitude of suggestions related to creating a separate business entity, ensuring that the facility meets minimum requirements, meeting equipment requirements, hiring and training the right personnel, workflow, documentation and pricing out the services offered.

“This can be a really lucrative business and possibly the biggest opportunity this industry has ever seen,” Terlep concluded. “But just because you have targets DOES NOT mean you’re in the ADAS services and calibrations business. There is only one way to perform ADAS services and calibrations…the RIGHT way!”

Frank Terlep

L-R: Jake Rodenroth, Mark Allen, Kelly Logan, Barry Dorn, Michael Bradshaw

What’s an OEM Certification Auditor Looking For?

Repairers often dread an OEM certification audit, but understanding the auditor’s objectives and the Repair Quality Assessment (RQA) process can actually help shops better manage their businesses and the quality of their repairs every day. Rick Miller (Wadsworth International) and Dennis Smoyer (Subaru) explained the process “From an Auditors’ Perspective, where Repairers are Hitting and Missing the Objectives.”

Auditors are assessing everything about a facility to identify how it will impact the customer’s experience, from the standards compliance to administrative systems and operations, tools and equipment. The RQA is built around technology and vehicle safety, according to Miller, who identified the OEM’s desired result as a “positive customer experience from a stress-purchase scenario, ensuring a safe and quality repair.”

Correct documentation, especially pulling repair procedures on each vehicle, is a vital component in audits, but Smoyer stressed, “While having the procedures in your file is one thing, following them is absolutely critical. If you’re on an OEM network, you’ve got to follow procedures…no ifs, ands or buts.”

Auditors also evaluate weld quality, often finding “terrifying welds that will never hold up in a subsequent accident,” Miller lamented. “An auditor’s job is to tell you what you’re not doing correctly.

“The customer should not be your quality control. If they are, it’s way too late in the process,” he added, emphasizing the importance of shops performing their own in-process QC throughout the repair. “You need to do a RQA on your own business every day!”

Dennis Smoyer

Rick Miller

Increase Profit and Control Cycle

Time by Owning Your Calibrations

ADAS is everywhere with the volume of registered vehicles containing ADAS growing year after year, while each vehicle sees an increasing number of systems. Shops that will continue to grow and succeed in the future need to invest in calibrations, but they have several options to meet the requirements that ADAS imposes on them. During “Own Your Calibrations,” Josh McFarlin (AirPro Diagnostics) examined the differences between bringing calibrations inhouse, subletting to a dealer, subletting to a local calibration center and subletting to a mobile company.

“In the very near future, we can expect 100 percent of vehicles to contain ADAS, and the more prevalent these systems become, the more dependent drivers are on them,” according to McFarlin.

“And generally, anytime these vehicles need to be repaired, we’re going to need to perform some sort of

calibration, whether it’s static, dynamic or a hybrid.”

To decide which option is best for your individual business, shop owners should start by looking at their work mix; domestic vehicles typically require more dynamic calibrations which involve a lower investment since targets and additional shop space are not needed. Conversely, Asian vehicles that largely need static calibrations require a certain amount of shop space that includes a level surface and specific lighting as well as the purchase of target sets and additional equipment. “Dip your toe in the waters by starting with dynamic calibrations,” McFarlin suggested.

Having the right people to perform the calibrations is also an important factor, but “the traits you’re looking for are less about what you’ve typically hired for in the past in terms of collision repair aptitude and more about electronics. Find a unicorn who is interested in computers or video games and also likes cars because they are generally going to be a pretty good fit.”

Stop Estimating and Start Repair Planning

Michael Bradshaw (K&M Collision; Hickory, NC) believes it’s time to stop estimating. “Many shops want to write estimates for every customer, but it’s time-consuming and often a waste of time because a large subset of customers are just looking for the cheapest estimate,” he stressed. “We don’t write estimates in our shop because they’re inaccurate; we cannot determine what the vehicle needs until we disassemble the vehicle and conduct repair research.

“If our estimate goes up dramatically after we tear down the vehicle, the customer is upset…We put ourselves in a bad position from the start by not explaining what’s needed to get an accurate cost,” he explained a major problem with estimates. “So, we sell our customers on the process of being thorough and getting it right the first time instead of merely taking a guess.”

Bradshaw believes that shops should be writing more accurate, efficient repair plans. As a result, they cause fewer delays and less administrative burden by reducing the number

of supplements needed. Using an actual repair plan on a Honda Pilot quarter panel from K&M Collision, he reviewed the many steps that shops take when blueprinting a vehicle yet often neglect to include on estimates.

“The repair blueprint essentially needs to tell the story of what you’re going to be doing to the vehicle,” Bradshaw emphasized. “It takes a little more time to be detailed, but you’re never going to collect what you’re worth if you’re putting everything on one line. When you break it out and show exactly what you’re doing, how many more labor hours could you legitimately pick up? It’s about grinding and being consistent with your staff and how you do things in your business. If you can lead by example, others in your organization can buy in. Develop a plan and stick to it. Implementing QC processes to correctly prepare your repair plan can make a world of difference.”

Josh McFarlin

Michael Bradshaw

NATIONAL FEATURE

continued from pg. 11

demanding the same things across all carriers, plus you don’t want a good carrier seeing that you didn’t charge other carriers for the same thing. There should be an appropriate standard of care that is used, so you can always say, ‘This is the policy and our business practice that is applied across all customers, irrespective of whether they’re insured or self-pay.’”

From this perspective, panelists touted the value of Standard Operating Procedures (SOPs) as helpful in providing evidence of processes that shops follow on every repair.

“They offer a level of consistency that you can always fall back on,” suggested Steve Krieps (Collision Safety Consultants of WV). “They give you more credibility when you insist, ‘This is how we always do it and how our people are trained’ when you can go back to demonstrate that in file after file.”

While it’s imperative that shops educate their customers about the process and about what’s needed on their vehicle, it’s equally important to recognize that the goal is to

help the consumer without becoming overly emotional or involved. “We want to educate them, but it’s the consumer’s problem to deal with,” Krieps noted.

“If you don’t stay in your lane, you’ll end up in an area where you’re not the expert,” Eversman warned. “Falling into someone else’s area of expertise never bodes well.”

CIC’s next meeting is scheduled for July 19-20, 2023 in Indianapolis, IN. Registration information, as well as presentations from previous meetings, can be found at ciclink. com H&D

Executive Director’s Thoughts

COVER STORY

continued from pg. 15

Bradshaw. “I am extremely grateful and humbled to have played a small part in the Southeast Collision Conference. I think now more than ever it is so important for people to take a step back and work on their business rather than in it. It is empowering to realize the strength of the collision repair community – we see people from all different walks, from a single man operation to a 10-location operator – everyone has so much to gain and learn from one another, and I feel like we were able to create an environment where this was accomplished.”

“Overall, the CCA and WMABA teams pulled together a great and memorable experience for all those collision repairers who took the time to come and invest in themselves, their team and the future of their businesses,” Hendler concluded.

Stay tuned for information about SCC 2024 as it becomes available at southeastcollisionconference.com H&D

-Jordan Hendler

This was one of the most in-depth and relevant CICs, and it’s just getting better and better as far as who’s in the room, too. The special presentations, especially from IIHS, were eye-opening and all of the committees brought forward detailed expert opinions that provided thoughtprovoking and business-changing ideas. I can’t imagine missing even one CIC week, when we learn so much every time!

Different Labor Types, Different Rates

“How many shops know what their true labor costs are?” asked John Shoemaker (BASF) during “Properly Identifying Labor Types and Rates,” as he pointed out, “Every other business sells products based on costs because businesses need to buy stuff at a cost that allows you to sell it at a rate that provides a little in between that you can survive on. Can we survive on $7 per labor hour? No, but we are.”

Once upon a time, vehicle repair consisted of 70 percent body labor, 20 percent mechanical and 10 percent frame, but modern vehicles have a ratio closer to 20 percent body, 60 percent structural and 20 percent mechanical. Additional repair types include refinish and electrical/diagnostic. Each type of repair requires a different skill set, and Shoemaker recommended that repairs should be identified by the skills required, technicians should be assigned to those repairs based on the required skills and the final repair plan must reflect the work performed and indicate who performed it.

In order to understand a shop’s true labor costs, one must evaluate the investment that is made into I-CAR and OEM

certifications, shop equipment and Human Resources-related costs (such as health insurance, 401(k) matching, workers’ compensation, vacation pay, etc.), and from there, the shop should calculate their labor rate based on the overall cost of the employee for each skill set category. From there, establish rates that reflect the appropriate profitability to sustain the business, to promote employee retention and to support the skills that today’s vehicles require.

“What is the estimating database good for?

Documentation!” Shoemaker reminded attendees. “If you look at the first line in the p-pages, it tells you that it’s a guide. If we follow an OEM repair procedure and it defines the process as structural, it doesn’t matter what CCC or Audatex tells us because we’re using OEM documentation to document the repair. If it calls for structural repairs, can you add the ‘s’ in there? Absolutely! The estimating database is a place to consolidate all the information and create your documentation, but the real work comes before you open up your estimating database through your research.”

John Shoemaker

Repairer to Repairer: Shop Trends that Need to be Discussed

Repairability, revolutions, insurance relations, best practices and vehicle advancements – repairers from coast to coast face similar hurdles in their businesses every day, and during SCC 2023’s Repairer to Repairer panel discussion, industry leaders shared their insights into tackling these tough topics. The panel included Barry Dorn (Dorn’s Body & Paint; Mechanicsville, VA), Phil Rice (Huber Collision Center; Fredericksburg, VA), Michael Bradshaw (K&M Collision; Hickory, NC), Frank Rinaudo (Frank’s Accurate Body Shop; Slidell, LA) and Ron Reichen (Precision Body & Paint Inc; Beaverton, OR) and was moderated by CCA President Kyle Bradshaw.

When asked what separates their shops from their competitors, the panelists agreed that culture is the main differentiator. “The most important people in our organization are our team because they take care of the customers who take care of our bottom line,” Reichen said. “We can teach skills, but if you want a perfect employee, you have to create that yourself. Owners and managers need to see themselves as coaches.”

“Two things we can control are attitude and effort,” agreed Kyle Bradshaw. “If people give us those, we can train and groom them if they’re willing to commit and do the right thing.”

Rice suggested that career pathing is also “huge and ties into how we differentiate ourselves. People need to be able to see how they can grow within the organization.”

Not surprisingly, panelists indicated that timeliness is one of their largest challenges in today’s market. The most important way to overcome issues related to resolving things in a timely manner is maintaining communication with the customer.

“Transparency begins at the beginning of the process,” Rinaudo stressed. “We have documents explaining what parts we’ll use, our labor rates and operations…and once we finish our repair plan, we email the estimate, photos and procedures to the customer and have a conversation explaining what

we’re doing and why. If we don’t do that, they don’t know.”

Referencing the trend of multiple supplements, Dorn called it a “morale killer that frustrates your staff, plus it adds an additional expense and burden on you. No matter what the insurance company wants to do, it’s the same car, and the end result is going to be the same. To the customer, seeing these different plans makes them question who is lying to them, and from the shop’s perspective, a vehicle that goes into the supplement process becomes a brand-new vehicle that just came in; we have to start the process all over.”

“Carriers are experiencing the same thing; it’s wearing their people out too,” Michael Bradshaw pointed out. “We’re arriving at the same place, so why do we need to go through all the back and forth?”

Panelists discussed the value of furthering their education by getting involved with local and national associations, as well as by mentoring one another. Documentation is vital, but no shop owner could say they get paid for every item they write for…so, how do they handle those disagreements?

“It starts with being transparent about what’s going on and establishing the fact that we’re the expert,” Reichen insisted. “We will write a repair plan that follows OEM procedures, but the relationship between the shop, customer and insurer isn’t a triangle; it’s two flat lines – one between the shop and the customer and another between the customer and the bill payer. If we reach an impasse with the insurance carrier, the customer has different options to get paid.”

Litigation is always an option, though it can be costly, but many policies also offer other possible remedies such as the Right to Appraisal. “The Appraisal Clause process works,” Dorn added. “We can’t choose it, but it’s an option for the customer. We spend time educating the customer so they understand the insurer isn’t the repair professional; we are.”

Ron Reichen

Kyle Bradshaw

Phil Rice

Michael Bradshaw

Frank Rinaudo

Barry Dorn

ADVICE INDUSTRY ASK MIKE:

How Do We Revolutionize Employee Retention?

This month, we “ASK MIKE” for his thoughts on unique ways that shops can better ensure employee retention. 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: At the NORTHEAST® Automotive Services Show in New Jersey back in March, you participated in a discussion on employee retention. You mentioned that when you were a shop owner, you implemented four-day workweeks for your staff. This was pretty interesting; I don’t know of any other shop owner who does that. What led you to do that at your business?

Mike Anderson: When I worked with my dad years ago, I was always stressed about taking a day off from work. There were no cell phones back then, so when you took off, it wasn’t like you could check in with anybody. I knew how stressful it was for me to take off, so I thought, ‘You know, I want to make it so that my employees don’t feel that stress.’ We made the decision that we were going to work longer days Monday through Thursday and close at 1pm every Friday. My employees loved it, and it was also a way for me to get them to buy into having a team system. I told them, ‘Here’s the deal. We’re going to close at 1pm on Friday. But when we close on Friday, nobody leaves until everybody leaves.’ If a technician’s last car was delivered at 11am, they would help the other techs finish a car, or they might help the wash rack person wash cars. Everybody had to jump in and help. If a tech had an apprentice do assembly and disassembly, I would give them a

three-day weekend once a month. Then, I started doing that for the estimators. I did it with the intention of giving my employees quality of life and also creating camaraderie so they would help each other. I did this from 2000 when I bought my dad out until I sold the shop in 2010.

H&D: You’re not an owner anymore, but you’re still in the industry and talk to shops every day. Clearly, we’re still somewhat in the pandemic era. One common complaint we hear from shop owners these days is, ‘Nobody wants to work.’ I would challenge that and say, ‘Nobody wants to work for you.’

MA: I agree.

H&D: With that in mind, what are some things you’re seeing shops do that really seem to attract and retain people?

MA: I see shops investing in their teams – not just with training but through team-building exercises or by having speakers like G.B. Outlaw or Mike Jones from Discover Leadership come in and truly build a team. Everybody wants to be part of a team. That’s why a lot of people like to be involved in sports or the military or in a band. That’s what our industry is missing. When people feel like they’re part of a team, it also helps them become better individuals.

When I was a shop owner, I’d shut my business down every quarter for a complete Friday. For example, in January, I’d shut down on a Friday and bring in the 401(k) people and tell my employees to invite their spouses. I’d buy lunch for everybody, and I’d allow the 401(k) people to schedule individual appointments with my employees and their spouses. Every April, I’d bring in someone to speak on health insurance. A lot of people have Christmas parties, but ours wasn’t just a party with a bar and a DJ; we’d have games where employees’ significant others could get involved. I used to have a strongman, Dennis Rogers, come in and

do an event for kids. It was really about building that family. I used to send birthday cards to all my employees’ kids. We’d send gift cards, and I would sign the birthday cards. I had a collage in my office with all of my employees’ kids. Every year, I’d take their school pictures and put them on there. That’s who we all worked for – those kids.

H&D: Presenting a clear career path for someone is also key to employee retention. People want to know where they are going to be at your business in three or five years. It’s not about earning a quick buck; it’s about presenting something to your employees that they can hold on to.

MA: If you go online and Google ‘Chipotle Career Path,’ you’ll see they actually have a graph of how much you can make in different positions. We lock a lot of people out of our industry because, while we have great technicians and estimators, they’re not good teachers. Back when I had my repair business, I had after-hours body training on the first Wednesday of every month. On the second Wednesday, I’d do the same thing for the paint department. On the third Wednesday, I’d do it for estimating and parts. If you work in a particular department but want to go to another one, you may need to take a pay cut because you don’t know anything. By offering that Wednesday night training, people had the opportunity to learn new things after hours. That way, their switch to another department would be a lateral move.

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

BY MIKE ANDERSON

One of the biggest things that changed my life and my business was a book by Gary Chapman and Paul White called The 5 Languages of Appreciation in the Workplace. People feel appreciation differently – not everybody is motivated by money. I had a client in Canada who wouldn’t reward a job well done with a bonus; the owner would do things like pay to have someone clean an employee’s house for a month! If I give you money as a bonus, you’ll spend it and not remember it five years from now. But if I pay to have someone clean your house or pay for your kid’s gymnastics lessons, that’s something that creates a memory, which can translate into loyalty. H&D