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The Photo Estimating Crisis
Avoiding Liability in Repairs
The Power of Fact: WMABA Launches 6th Annual Labor Rate Survey
GREATER NUMBERS, STRONGER GOALS:
West Virginia Joins WMABA!
November 2017 Volume 11, No. 11 $5.95 www.grecopublishing.com
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Are you here? Come join us! CIC – Tuesday, October 31 at the Renaissance Hotel from 8am-5pm, followed by a reception at the Westgate Las Vegas from 6:30pm-9pm
CONTENTS November 2017
The Collision Industry Conference (CIC) is a forum for participants from all segments of the collision repair industry to discuss issues pertinent among them. CIC facilitates camaraderie within the industry, allowing members to explore ideas, enhance understanding and communicate potential solutions. (For more info: ciclink.com)
SCRS’ OEM Collision Repair Technology Summit – Thursday, November 2 at Upper North Hall N241 (upstairs) at the Las Vegas Convention Center The OEM Collision Repair Technology Summit is an all-day networking and learning opportunity unlike anything else in the collision repair industry. Designed to put SEMA show attendees in the same room as innovators in automotive structural design and technology, the Summit will focus on the ways automotive research and technology will affect routine repairs and how failure to comply with these advancements can jeopardize shops’ liability and safety. (For more info: scrs.com/rde and page 22)
26 COVER STORY GREATER NUMBERS, STRONGER GOALS: WEST VIRGINIA JOINS WMABA!
The WMABA family grows larger. BY JOEL GAUSTEN
WMABA FEATURE 18
THE POWER OF FACT: WMABA LAUNCHES 6TH ANNUAL LABOR RATE SURVEY Announcing WMABA’s latest investigative endeavor. BY KRISTEN DALLI
SEMA PREVIEW 22
SCRS HOSTS OEM COLLISION REPAIR TECHNOLOGY SUMMIT ON RESEARCH AND ADVANCED TECHNOLOGIES A day of innovation and education.
NATIONAL FEATURE 30
STATE OF THE INDUSTRY ADDRESS: AN EXECUTIVE DIRECTOR/ADMINISTRATOR ROUNDTABLE
Intriguing perspectives from association leaders. BY JOEL GAUSTEN
DEPARTMENTS 6 10 12
13 14
TECHNICAL FEATURE 40
OEM REPAIR INFORMATION FOR ESTIMATING AND TO PROTECT YOUR LIABILITY
Protecting yourself from legal headaches. BY LARRY MONTANEZ III, CDA
GUEST FEATURE 44
Inside a dangerous industry trend. BY KEITH MANICH
14 24 51 52
THE “ERA OF TOUCHLESS CLAIMS FOR INSURERS” 54
Calendar of Events Editor’s Message JOEL GAUSTEN
Executive Director’s Message JORDAN HENDLER WMABA Sponsorship Page
What’s WMABA Up To? WMABA Membership Application
News From Polyvance President’s Message MARK SCHAECH, JR.
WMABA Board of Directors
Advertisers’ Index
Stock Images © www.istockphoto.com
November 2017
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Industry training opportunities and don't-miss events.
CALENDAR OF
EVENTS
November 9, 6pm – West Virginia WMABA Town Hall Meeting The first meeting of the collision repa irers in West Virginia, to discuss the current industry trends and potential initiatives by the association. Cabela’s Meeting Room, 200 Cros s Terrace Blvd. Charleston, WV 25309
CLASS LISTINGS November 1, 2017
STRUCTURAL STRAIGHTENING STEEL FinishMaster (formerly Refinish Solutions), Springfield, VA
November 2, 2017
SECTIONING OF STEEL UNITIZED STRUCTURES Alexandria Training Center, Alexandria, VA
January 11, 6pm – Annual WMABA Membership Dinner Meeting The annual dinner meeting of the asso ciation, for updating the industry of the 2018 initiatives, and to get together for elections. Location TBA
November 6, 2017
CORROSION PROTECTION FinishMaster (formerly Refinish Solutions), Springfield, VA
November 7, 2017
UNDERSTANDING THE CYCLE TIME PROCESS Frederick Co. Career & Tech, Frederick, MD
November 8, 2017
PLASTIC & COMPOSITE REPAIR FinishMaster (formerly Refinish Solutions), Springfield, VA COLOR THEORY, MIXING TONERS & TINTING Waldorf Toyota, Waldorf, MD
November 9, 2017
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR DARCARS Collision Center of Rockville, Rockville, MD
November 14, 2017
FOR06 2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Waldorf Toyota, Waldorf, MD FULL-FRAME PARTIAL REPLACEMENT Delcastle VoTech, Wilmington, DE
November 15, 2017
ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT FinishMaster (formerly Refinish Solutions), Springfield, VA
November 16, 2017
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR Frederick Co. Career & Tech, Frederick, MD WHEEL ALIGNMENT & DIAGNOSTIC ANGLES King Volkswagen, Gaithersburg, MD
November 19, 2017
FULL-FRAME PARTIAL REPLACEMENT Alexandria Training Center, Alexandria VA
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November 2017
November 20, 2017
UNDERSTANDING THE CYCLE TIME PROCESS FinishMaster (formerly Refinish Solutions), Springfield, VA
November 27, 2017
VEHICLE TECHNOLOGY TRENDS & DIAGNOSTIC OVERVIEW FinishMaster (formerly Refinish Solutions), Springfield, VA
November 29, 2017
AUTOMOTIVE FOAMS FinishMaster (formerly Refinish Solutions), Springfield, VA
November 30, 2017
ADVANCED STEERING & SUSPENSIONS SYSTEMS DAMAGE ANALYSIS Alexandria Training Center, Alexandria, VA
December 5, 2017
VEHICLE TECHNOLOGY TRENDS & DIAGNOSTICS OVERVIEW Center Service Auto Body, Morgantown, WV
December 6, 2017
REPLACEMENT OF STEEL UNITIZED STRUCTURES FinishMaster (formerly Refinish Solutions), Springfield, VA
STEERING & SUSPENSION DAMAGE ANALYSIS Toyota of Waldorf, Waldorf, MD
December 7, 2017
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR Alexandria Training Center, Alexandria, VA
December 11, 2017
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY FinishMaster (formerly Refinish Solutions), Springfield, VA
December 13, 2017
SQUEEZE-TYPE RESISTANCE SPOT WELDING FinishMaster (formerly Refinish Solutions), Springfield, VA
December 14, 2017
STRUCTURAL STRAIGHTENING STEEL Frederick Co. Career & Tech, Frederick, MD
December 27, 2017
PLASTIC & COMPOSITE REPAIR FinishMaster (formerly Refinish Solutions), Springfield, VA
www.i-car.com or (800) 422-7872 for info
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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers. Ourisman Honda 3371 Ft. Meade Rd. Laurel, MD 20724 Direct: 301-498-6050 Fax: 301-498-0157 www.laurelhonda.com
Honda of Tysons Corner 1580 Spring Hill Rd. Vienna, VA 22182 Direct: 703-749-6652 FAX: 703-821-4229 www.hondatysonscorner.com E-mail: sebastian.venegas@hondaoftysonscorner.com
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Miller Honda 3985 Valley Pike Winchester, VA 22602 Direct: 800-296-5020 Direct Local: 540-868-9916 Fax: 540-869-1074 E-mail: bmorgan@drivemiller.com
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Joel Gausten
EDITOR’S
(973) 600-9288 joel@grecopublishing.com
MESSAGE WORDS FROM VEGAS
It’s SEMA time! If you’re reading this message from the floor of the Las Vegas Convention Center, I’d like to welcome you to the greatest automotive event in the world! Hammer & Dolly is here in full force, reporting on the endless array of events that make this an unforgettable week for nearly 200,000 car enthusiasts. If you’re looking to receive the latest in collision repair education and training, be sure to take the classes offered through the Repairer Driven Education series organized by the Society of Collision Repair Specialists (SCRS). Also, don’t forget to check out the Collision Industry Conference (CIC) and the OEM Collision Repair Technology Summit for in-depth discussions on the technologies and trends shaping the industry now and in the future. More information on these gatherings is available on our contents page (with additional content on the Summit available on page 22). For those who are checking out this publication for the first time, Hammer & Dolly is the official publication of the Washington Metropolitan Auto Body Association (WMABA), a major industry group representing repairers and vendors in Virginia, Maryland, D.C. and – as of this issue – West Virginia. Unlike many regional associations, WMABA maintains an active national presence through their affiliations with SCRS and other entities WMABA OFFICERS
PRESIDENT
VICE PRESIDENT
TREASURER
SECRETARY
IMMEDIATE PAST PRESIDENT
Mark Schaech, Jr. mark@marksbodyshop.com 410-358-5155 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928 Phil Rice phil@ricewoods.com 540-846-6617 Don Beaver don.beaver3551@gmail.com 443-235-6668
BOARD OF DIRECTORS
Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Barbara Chase (barbara@siskautobody.com) 301-855-5525 Ben Gibson (bgibson@harrisonbodyworks.com) 804-355-8151
ADMINISTRATION
Steven Krieps (srkrieps@live.com) 304-755-1146 Ashley Kruger (akruger@baughautobody.com) 804-285-8045 Bill Hawkins (whawkins@mybmwannapolis.com) 410-349-2578 Danny Szarka (dszarka@mileone.com) 410-525-1000
EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116
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committed to bettering the industry. More information on what WMABA has to offer is available at wmaba.com. If you’re reading this issue closer to home, we are excited to share the great news of West Virginia’s addition to the WMABA family! Check out this month’s cover story to learn more. Also, be sure to read about the latest WMABA Labor Rate Survey and how you can help the association gain the knowledge necessary to properly represent the financial realities of your region. No matter where you are, I wish you much success in your endeavors in the auto body world! Never hesitate to contact Hammer & Dolly if you have news to share or need insight into an important industry-related topic. I can be reached at (973) 600-9288 or joel@grecopublishing.com; past issues of this magazine are available free online at grecopublishing.com. H&D
November 2017
STAFF
PUBLISHER SALES DIRECTOR EDITORIAL DIRECTOR CREATIVE DIRECTOR EDITORIAL/CREATIVE COORDINATOR
OFFICE MANAGER
Thomas Greco thomas@grecopublishing.com
Alicia Figurelli alicia@grecopublishing.com
Joel Gausten joel@grecopublishing.com
Lea Velocci lea@grecopublishing.com
Kristen Dalli kristen@grecopublishing.com
Donna Greco donna@grecopublishing.com
PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2017 Thomas Greco Publishing, Inc.
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PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment November 2017
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EXECUTIVE DIRECTOR’S
MESSAGE
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
$42 MILLION PEBBLE HAS HIT THE PROVERBIAL POND: HOW OEM REPAIR PROCEDURES COULD HAVE SAVED JOHN EAGLE
I have spent enough time in this industry to know that when a verdict of the magnitude of the recent John Eagle Collision Center case hits, this ripple is going to create a wave. While most would see this “pebble” as a shocking one-time occurrence, it is likely to affect the entire industry. Don’t you think the attorneys of America will be paying closer attention? Shouldn’t collision repair professionals do the same? Have you seen all those television commercials for open class actions like mesothelioma, blood thinners or bladder mesh while trying to burn your eyeballs with B-rated programming? When they say, “We don’t get paid until you do!” in the sleaziest of tones, the same thing could become true for the collision repair market. It might not be so uncommon to hear our own, “Have you been injured in an accident after the vehicle was repaired?” Will we see more of these cases? Tracy Law Firm rep Todd Tracy recently told Repairer Driven News he didn’t see copycat cases as much of a factor, declaring many attorneys to be too lazy or incompetent to handle such litigation. “I assume they’ll just bring it to us,” he said of other attorneys seeking to sue shops. That doesn’t mean it won’t happen, or that it couldn’t happen, to anyone.* It could just as likely happen to you as it did to John Eagle Collision Center. Technical information and deposition reading aside, the big message in this case is to heed the OEM repair information, recommendations and requirements. We’ve been slamming that statement for years, along with every other trade organization in our country, but still we hear daily of shops succumbing to insurer tactics to reduce repair prices by offering subpar alternatives. What if more repairers than not were to actually put the technical aspects first and educate the customers about proper repair techniques, even citing the John Eagle case as to why we can’t just “cut corners” or use alternative, unapproved techniques? What if this case, should you choose to accept the challenge, was given out to customers to show just how much these seemingly minor decisions matter? No person confronts the theoretical with self-conviction, but if you show them the pictures and tell them the story, maybe they could put themselves in the shoes of someone who has another accident and imagine their family is in the car.
Now, we have tangible proof as to why taking shortcuts is too dangerous a gamble. So USE IT!
You don’t have to dig far into the case to see the billboard message here: Insurers will NEVER BACK YOU UP IN COURT. Never. Ever. Just because they’ve “talked” you into changing a repair method or maybe even to use an inferior part, that decision is yours. Should consequences arise, the light switch comes on and they scatter like cockroaches. They will only have interest in self-protection. Nothing in writing from them telling you to make that change? You’re even more so on your own. What can you do to prevent this? You research every repair for technical information, and you want EVERYTHING ever denied in writing. If it deviates from the OEM repair method one iota, and there’s not a repair bulletin or documented alternative from a reputable entity, then you don’t do it. The customer has to sign off liability for any deviation – and only after you’ve educated them to the best of your ability. Just because they don’t want to pay the difference doesn’t mean you’re off the hook – that’s exactly an argument used in the case against the 3M process used on that specific car. They were supposedly trained by a 3M person to use this other method against the OEM procedure, but guess what?! No paperwork supported it. In fact, there was 3M documentation in direct opposition, supporting OEM repair procedures. $42 million is a lot of money to anyone, and way more than any standard garagekeeper’s policy. You’d be out of business, right? So, say you can’t afford to make those kinds of gambles. YOU don’t have the coverage. This case may change nothing, but it could also change everything. Only time will tell how far the ripple goes, but those who learn from other people’s mistakes will be far better off than those who don’t. H&D
*information from Repairer Driven News article: repairerdrivennews.com/ 2017/10/03/after-the-verdict-tracy-plans-state-farm-lawsuit-crashtesting/.
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective. 12
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WMABA THANKS
YOU WMABA thanks their generous supporters of the
LEVEL 1
Corporate Sponsor Program for 2017!
We encourage YOUR SUPPORT of those who SUPPORT US! For more information about the sponsorship program, please contact Executive Director Jordan Hendler at (804) 789-9649 or email jordanhendler@wmaba.com
www.wmaba.com
LEVEL 2 Automotive Training Institute Certified Automotive Parts Association FinishMaster Mid-Atlantic Paint & Supply National Coatings and Supplies WheelsOnsite
November 2017
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Find more association updates at www.wmaba.com.
WHAT’S UP TO? WMABA MEMBERSHIP: THE UN-SECRET PLAYBOOK It’s always a good time to get involved in WMABA. If you’re reading this, your first benefit is already being realized: Staying up to date on the news in our area and beyond.
Get Your Team Jersey Supporting WMABA is an investment in the future of your business and your industry. By becoming a member, you are represented in all the places the Board or executive director go. Whether at a trade show like SEMA, assisting with the SCRS OEM Technology Summit regarding certified repairs or locally at the state capitol meeting legislators or testifying at a hearing, your interests and the interests of all repairers are at the forefront. Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team. Get Educated WMABA offers issue-specific, topic-driven education throughout the year. Participation in special events and local meetings, such as the Audi Training Center-hosted seminar and tour, offers your business the best in opportunities to advance your understanding of changes within our industry.
JOIN TODAY!
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The Playbook The association is your resource for all things related to your business. Whether you have a question about current Labor Rate data, operations, customer interaction, insurer relationships, vendor products or national news, your association is the place to ask first. Through our relationships nationally, we can even take issues to the forefront of places such as the Society of Collision Repair Specialists, Collision Industry Conference or national contacts for insurers and vendors. Locally, we research governmental regulations and oversight to make sure the repair industry is protected from any negative legislation. Represented in both Virginia and Maryland, WMABA proposes and opposes recommended bills that come into the legislature during open session. Also, we work with consumer-related entities, government agencies and other related industry organizations to ensure that the voices of the repairer and their customer are heard. Many repairers take advantage of the knowledge and community the association has for navigating situations that arise. A simple phone call or email can circumvent many issues our members encounter.
Call the Game As a member, you decide your personal level of participation. Do you have interest in committees that address particular issues you feel passionately about? Would you want to be a Board member and assist in guiding the direction of the association? How about sitting on the sidelines so you can focus on your own business? All answers can be correct! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved. The minimum is getting your membership. This year can WIN with your commitment to the betterment of your business and your industry. Sign up today! H&D
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Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138
Checkered Flag Volkswagen 3025 Virginia Beach Blvd Virginia Beach, VA 23452 Parts Direct: 757-687-3465 757-490-1111 Fax: 757-687-3514
e-mail: parts@alexandriavw.com
Karen Radley Volkswagen 14700 Jefferson Davis Hwy. Woodbridge, VA 22191 703-550-0205 Fax: 703-643-0081
Ourisman Volkswagen of Bethesda 5415 Butler Road Bethesda,MD 20816 301-652-2452 Fax: 301-652-2589
www.checkeredflag.com
e-mail: parts@fitzmall.com www.fitzparts.com
Ourisman Volkswagen of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Toll Free: 855-417-4511 Fax: 240-499-2488
King Volkswagen 979 North Frederick Ave. Gaithersburg, MD 20879 Parts Direct: 240-403-2300 Fax:240-403-2398
e-mail: rockvilleparts@ourismanautomotive.com www.ourismanvolkswagenofrockville.com
e-mail: vwwholesale@ourisman.co
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Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841
November 2017
e-mail: parts@vwking.com www.vwking.com
Fitzgerald Volkswagen of Annapolis 34 Hudson Street Annapolis, MD 21401 Phone: 410-224-4636 Fax: 410-224-4264 www.fitzmall.com
Ourisman Volkswagen of Laurel 3371 Ft. Meade Rd. Laurel, MD 20724 Phone: 301-498-6050 Fax: 301-498-0157 www.laurelvolkswagen.com
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Superior service starts with superior parts. Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life. Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you
Contact these Mazda dealers for all your parts needs: Brown’s Fairfax Mazda 10570 Lee Hwy. Fairfax, VA 22030 Toll Free: 800-234-8642 Phone: 703-385-3994 Fax: 703-591-5348
Nu Car Mazda 172 North Dupont Hwy. New Castle, DE 19720 Toll Free: 800-346-5283 Fax: 302-322-7135
Ourisman Mazda of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Phone: 855-417-4511 Fax: 240-499-2488 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanmazdaofrockville.com
Fitzgerald Mazda 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax 877-696-1841 E-mail parts@fitzmall.com www.fitzparts.com
Fitzgerald Mazda of Annapolis 1930 West Street Annapolis, MD 21401 Toll Free: 866-280-8022 Phone: 410-224-4636 Fax: 410-224-4264 www.fitzmall.com
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WMABA
FEATURE THE POWER OF FACT: WMABA Launches 6th Annual Labor Rate Survey As active members of the collision repair industry, receiving fair market compensation for the work you perform is often a struggle. “You’re the only one who charges for that” has become an all-toocommon mantra among certain parties in this business. However, as an association, WMABA is committed to bettering the industry, and the best way of doing that is by hearing from you: The members. With the association’s sixth annual Labor Rate Survey, participating shops can provide insights into true market data to show what the region is charging as the door rate. Additionally, the Survey results offer intriguing insights into the procedures that receive payment from carriers. This sixth anniversary edition of the Survey (available online at wmaba.com/laborrate-survey or surveymonkey.com/r/wmaba laborrate survey) is asking WMABA-area shops to provide their posted/retail rates for several operations. As always, all Survey results remain completely anonymous, and no participating shops will be identified by name. With the Survey entering its sixth iteration, WMABA Executive Director Jordan Hendler continues to see the significance and relevance of this endeavor. “This Survey has enabled WMABA to identify trends in rate movement in our region,” says Hendler. “Doing this for the sixth time will help us determine what conditions are improving and what still needs further attention. Collision repair facilities rely heavily on the Labor Rate, so it’s more important than ever to provide our members with the most current facts and figures.” When taking the Survey, shops are asked to provide rates for body labor, frame/structural work, paint/refinish, paint
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materials, aluminum structural work (if applicable), mechanical work and daily inside/outside storage. Additionally, they can include the number of estimators, office personnel and technicians at their facilities, total square footage, preferred paint and materials cost accounting system (if one is in use) and their gross annual sales. WMABA is encouraging Survey-takers to share certain procedures they believe are required during the repair process and whether these procedures are currently performed and charged for at their shops, such as: “mark-up” or “admin” on sublet [towing, upholstery, mechanical, etc.]; “clips and fasteners” needed in the repair process; “color sand and buff;” Feather, Fill, Block and Prime on repaired panels; Feather, Fill, Block and Prime on welded panels; “check and test seat belts” being used in the accident; “prep raw plastic” when recommended by paint suppliers; and “weld-thru primer” and/or “cavity wax” when needed. The Survey also consists of nearly three dozen critical industry-related “yes or no” questions that include the following:
Do you believe insurers rate you on the use of alternative parts to OEM, such as used or aftermarket? Do inadequate or poorly written estimates by insurance company representatives delay the repair process and cost your shop time and money while you rectify mistakes? Do appraiser(s) tell you, “We can’t pay for that, because it is against insurance company policy,” even though you knew it was a fair, reasonable and necessary item?
Is it your experience that a good portion of insurance company representatives will intentionally write “low-ball” estimates that omit obvious visible damage?
Do you use the degweb.org website to submit inquiries of missing or inaccurate labor, parts, materials or other flaws in the estimating system guides?
Do you believe insurer reimbursement rates are fair enough to support adequate profit for continuing education, certifications and new equipment?
As in years past, the Survey asks participants to provide information on employer/employee relations by answering questions on the perks they offer, including personal leave, paid vacations, paid sick time, health/dental/vision/life insurance, longterm disability and 401(k)/retirement plans. One of the main goals of the annual WMABA Labor Rate Survey is to give collision repairers a voice separate from the influence of insurers or their own internal surveying mechanisms. “We’ve always wanted to reflect shops’ posted or retail rate, not the ‘wholesale’ or concessionary rate they might have under an agreement with a carrier,” offers Hendler. “The ‘wholesale’ rate is not an accurate depiction of the business shops are doing; it’s reduced for an insurer, and isn’t a fair or accurate representation of other rates that are out there. When shops provide us with their cash/walk-in rate, we know the results we produce are realistic of the regional market, void of any DRP agreements that aren’t indicative of the majority of shops in a given area.”
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Six years and counting.
BY KRISTEN DALLI
“This Survey continues to provide us with new information, and information that we can then turn around and use to help our members,” Hendler says. “It provides us with resources when meeting with state and local government to discuss our ideas and ask for help in finding solutions. The results from our Survey arm us with the facts needed to defend against opposition and prove there are genuine concerns in our industry that need to be addressed.” WMABA’s annual Labor Rate Survey continues to be successful because of the participation from member shops. “As fellow shop owners, the WMABA Board of Directors understands how busy it can get. That is why the Survey is designed to ask you the most pertinent questions and not take longer than a few minutes of your time. We’ve only included questions we deem necessary to get the most complete snapshot of the issues you’re experiencing on a daily basis. In the few minutes it takes to complete the Survey, you could be benefiting your business for years down the line.” The 2017-2018 WMABA Labor Rate Survey can be taken online at wmaba.com/labor-rate-survey or surveymonkey.com/r/wmabalaborrate survey. The results of the project will be featured in an upcoming issue of Hammer & Dolly. If you have questions or require additional information, please contact Jordan Hendler at (804) 789-9649 or jordanhendler@wmaba.com. H&D
November 2017
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THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 Fax:410-349-2586 mybmwannapolis.com
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Apple BMW of York 1370 Roosevelt Ave. York, PA 17404 800-839-1755 Fax: 717-843-2948 applebmwofyork.com
November 2017
BMW of Fairfax 2805 Old Lee Highway Fairfax, VA 22031 800-879-2269 Fax: 703-641-8562 bmwoffairfax.com
BMW of Sterling 21826 Pacific Blvd. Sterling, VA 20166 888-954-8222 Fax: 571-434-7727 bmwofsterling.com
BMW of Alexandria 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 bmwofalexandria.com
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BMW of Silver Spring 3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Direct: 301-890-3015 Fax: 301-890-3748 bmwofsilverspring.com
Passport BMW 5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 passportbmw.com
Northwest BMW 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 northwestbmw.com
Richmond BMW 8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 E-mail: tdailey@crownauto.com richmond-bmw.com
November 2017
BMW of Catonsville 6700 Baltimore National Pike Baltimore, MD 21228 855-996-2906 410-744-2000 Fax: 410-818-2600 bmwofcatonsville.com
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PREVIEW
SCRS Hosts OEM Collision Repair Technology Summit on Research and Advanced Technologies
When: Thursday, November 2 Where: North Hall N241 (upstairs) at the Las Vegas Convention Center More info: scrs.com/rde
About SCRS’ RDE Series: The Repairer Driven Education (RDE) series features five days of seminar offerings, many of which are designed specifically for the 2017 SEMA Show, and can’t be found anywhere else. This includes the OEM Collision Repair Technology Summit. SCRS has chosen and crafted each session with the collision repair industry in mind, developing content that is both current and relevant and appeals to the diverse perspectives within the industry. About SCRS: Through its direct members and 39 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS (including other news releases) is available at scrs.com.
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If you’re at SEMA, the Society of Collision Repair Specialists (SCRS)-hosted OEM Collision Repair Technology Summit (held on Thursday, November 2) is a can’t-miss event. The all-day seminar focuses on the ways in which automotive research and technology will affect routine repairs, and how failure to comply with these technological advances can jeopardize shops’ liability and safety. The program puts SEMA Show attendees in the same room as innovators in automotive structural design and technology, providing a learning and networking opportunity unlike anything else in the collision repair industry.
The first session of the day (OEM 1: How Automotive Research is Driving Change in Vehicle Design, Technology and Function) provides attendees with a deeper insight into the research going on in today’s market that has the potential to affect the ways in which vehicles are repaired in the future. Moderator John Waraniak (SEMA vice president of vehicle technology) leads the seminar, discussing topics such as autonomy, connectivity and structural developments for advanced vehicle lightweighting. The conversation focuses on the impact research has in developing and testing these new technologies. The panel includes the following representatives:
M. Scott Ulnick, managing principle, Ducker Worldwide Matthew Doude, associate director, Center for Advanced Vehicular Systems (CAVS) Doug Richman, vice president of engineering, Kaiser Aluminum Barry Dorn, vice president, Dorn’s Body and Paint
The second session of the day (OEM 2: The Impact of Advanced Vehicle Systems on Routine Repair Process and Procedure) will focus on the effect these new technologies will have on routine repair procedures. Led by Kaleb Silver (senior product manager at Hunter Engineering), the session shows attendees the increased popularity of Advanced Driver Assistance Systems (ADAS) on new vehicles and the significant effects they have on formerly routine services (with a particular focus on wheel alignment). Additionally, the conversation covers the ways ADAS calls for repairers to change their approach to traditional procedures and the challenges currently facing the industry in this area. Panelists include the following:
Aaron Lowe, senior vice president of regulatory and government affairs, Auto Care Association Scott Kaboos, assistant manager of collision, American Honda Motor Co. Dean McConnell, director of ADAS business unit, global customer programs, NAFTA OEMs chassis & safety division, Continental Corporation
The third and final session (OEM 3: The Hidden Dangers of Vehicle Technology, Improper Repair Methodology and Your Liabilities) seeks to reconcile progress in the industry between manufacturer requirements and insurance companies. This portion of the seminar focuses on the ways the current collision repair industry culture seems to reward those who charge the least, rather than those who perform the best, and the challenges this poses for businesses committed to complying with OEM requirements. Because current litigation has proven that deviating from OEM repair procedures can be detrimental to shops’ safety and liability, this final session of the Summit (moderated by John Ellis, managing director of Ellis & Associates) is a critical discussion that every repairer should attend. Panelists include the following: Todd Tracy, attorney, The Tracy Law Firm Erica Eversman, attorney, Vehicle Information Services Mark Allen, collision programs director, Audi of America Aaron Clark, former collision repair facility owner
The 2017 OEM Collision Repair Technology Summit is made possible with support from PPG Automotive Refinish; AkzoNobel; BASF; CCC Information Services, Inc.; DeBeer Refinish; Reliable Automotive Equipment, Inc.; Toyota Motor Sales, USA; and SEMA. H&D
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DON’T MISS THE INDUSTRY EVENT OF THE YEAR
SEMASHOW.COM TUESDAY, OCTOBER 31–FRIDAY, NOVEMBER 3, 2017 • LAS VEGAS CONVENTION CENTER, NEVADA
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NEWS FROM
The latest from WMABA members and supporters.
POLYVANCE Polyvance’s New NITROGEN WELDER LINEUP Polyvance is announcing a major overhaul of its Nitro Fuzer line of nitrogen plastic welders, which will now include a fully functional, entry-level product, the 6085. Its two existing models, the 6085-C and the 6080-CG, will now include a free bumper workstation. Polyvance’s revised product line now offers an option for every budget. Welding with nitrogen gas creates the strongest welds possible because it eliminates oxidation of the plastic during the welding process. Think of it like TIG welding for plastic – no oxidation, no burning, no contamination. The hot nitrogen gas melts the plastic cleanly for optimal fusion. Nitrogen plastic welding is the latest technology for repairing all sorts of automotive plastics like bumper covers, headlight tabs, fenders and underhood plastics. Shops all over North America have discovered the advantages of doing their own plastic repairs - faster cycle time, higher gross profit and lower severity, among many others. The Polyvance Nitro Fuzer line of welders offer an option to every shop and every budget. The new entry-level 6085 is the nitrogen welder with a nitrogen bottle regulator, so it’s ready to be used straight out of the box. The 6085 does not include the MIG cart, so it’s ideal for placement on a bumper workbench – or it can be mounted on any commonly available MIG cart. The MSRP for this unit is $2,995. The mid-level 6085-C includes the 6085 welder and is mounted on Polyvance’s made-in-USA heavy-duty MIG cart. It includes a full selection of plastic welding rod, a starter roll of aluminum tape and a hand seamer tool. It now includes a 6075 Bumper Mate 2 workstation for the same price of $3,995.
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The top-of-the-line offering, the 6080CG, has a nitrogen generator, so it eliminates the need for nitrogen bottles. It now includes a bunch of new components, including the Bumper Mate workstation, a cart cover, the 6146 Bumper Pliers Kit, two carbide cutting burrs and the 6066-TA nitrogen tire filling adapter kit. This system has a new lower MSRP of $5,995. Every Nitro Fuzer features digital encoders to precisely control the temperature of the nitrogen and airless welders. They also feature hassle-free, automatic switching to nitrogen gas flow, eliminating waste of bottled nitrogen gas. Precision regulators combined with an analog flow gauge gives the technician ultimate control over how much gas is used in the welding process. Finally, a lowpressure safety switch prevents the heating element from overheating if the gas flow
drops too low. All of these features add up to a machine that’s both versatile and easy to use. Polyvance, the pioneer in automotive plastic repair since 1981, was the first company to commercialize nitrogen plastic welding in 2006. To this date, Polyvance has delivered more nitrogen plastic welders and trained more technicians in their use than all other companies in the industry combined. To make sure your technicians are productive right away, every new Polyvance Nitro Fuzer welder includes free courtesy training from a Polyvance-trained instructor. Polyvance also offers paid follow-on training that is approved as part of the I-CAR Industry Training Alliance program. H&D
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COVER
STORY
A new era of the Washington Metropolitan Auto Body Association is upon us. As WMABA prepares to hit the 50-year mark, the association is proud to announce the addition of West Virginia as a state the group will represent within its membership territory in its work on behalf of the collision repair community. “WMABA has two major milestones cresting into 2018: The 50th Anniversary and now the West Virginia addition,” commented WMABA President Mark Schaech, also vice president of Mark’s Body Shop in Baltimore. “I am so pleased to see this new growth, probably to go along with additional re-branding opportunities, and the excitement of this is very refreshing. As collision repairers, we can get bogged down in the minutia of shop life. It’s easy to lose sight of all we are really capable of when we lock together. It could be the best thing to happen in my time with WMABA, both on the Board and as a longtime member.” Executive Director Jordan Hendler is equally excited to see another state join the industry mainstay.
GREATER NUMBERS, STRONGER GOALS:
West Virginia Joins WMABA! 26
November 2017
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A louder voice for WMABA.
BY JOEL GAUSTEN
“WMABA has been navigating the socioeconomics and technical aspects of the collision repair industry for nearly 50 years. With their presence at trade conferences across the country, they are on the forefront of progress. This partnership with WMABA will be instrumental to the Mountain State, and we are ecstatic and honored to be members of the WMABA family. We are more than prepared for a brighter future.” - Steven Krieps, WMABA Board of Directors “They are just like our membership now: They want representation, education and camaraderie only found by being part of an association. They want the industry better, and that is universal no matter where you’re from. Adding West Virginia is a really big deal, but that could just be the beginning of us doing more things – even adding another state, like Delaware, that doesn’t have representation. Because West Virginia is new to our group, we will likely work on educating the membership in their territory on processes for legislation, getting representation with state agencies and understanding key principles that we’ve been hitting on for years. Once they’re up to speed, I’m sure there will be similar efforts in their area as in the established regions.” Steve Krieps, shop/parts manager at Greg Cline Automotive in Winfield and a 10-year veteran of the collision repair industry, went above and beyond in making the WMABA/West Virginia partnership possible. After experiencing more than his fair share of frustration in his dayto-day struggles with insurers and other common issues, he decided he had gone as far as he could go on his own. “It started to bother me that there was nowhere to turn as a tech or shop owner,” he says. “Some of the governing bodies in our state that are tasked with basically handling those issues don’t seem to really want to do anything.” Taking matters into his own hands, Krieps reached out to Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) for thoughts and assistance; Schulenburg recommended that he contact WMABA
Executive Director Jordan Hendler to see if the association could help shops in West Virginia come together in a productive and unified way. Within a few weeks, a union between WMABA and West Virginia was in the works, and the rest is history. Along the way, Krieps and Hendler joined forces to fight against a West Virginia bill aiming to remove a written consent requirement for a customer to receive non-OEM parts. “When the legislation to change the aftermarket parts requirements came up, Steve was right on the case!” Hendler recalls. “Throughout that process of combatting the change, we got to know each other more, and I think he saw the value in the association and having representation. It kindled something in him, I think, to start the hunt to gather shops around this cause.” With his new position on the WMABA Board of Directors firmly in place, Krieps is looking forward to working with his fellow directors and the industry at-large in strengthening the quality of consumer education. “It’s mind-blowing how many consumers don’t understand how the actual process works. Over the years, there’s been this mass-marketing push to where customers are led to believe, ‘It’s so simple. You make a phone call, tell somebody what’s going on and they’ll handle everything.’ Consumers are not involved, but it’s their rights that they’re forfeiting at the end of the day. They’re not asking, ‘Are you certified in welding? What makes it okay for these parts to be used? Do you have the equipment to properly repair my vehicle?’ Consumers give away a lot of trust without truly understanding it.”
Additionally, he believes that WMABA can serve a pivotal role in helping technicians rise to meet critical industry standards. “I would love to see auto body technicians have to be licensed. It makes no sense to me that the guy who cuts my hair at my local barber shop has to pass inspections and pay for a license every year when the worst thing he can do is make me look funny for two weeks – but the person who is bolting the seatbelt in the car that holds your child officially has no legal qualifications to be able to do that job.” In the months to come, WMABA will release additional information about the 50th anniversary and initiatives in the works for continuing to be at the forefront of education, mentoring and membership advocacy. The entire Board of Directors – especially Krieps – is pleased with the potential opportunities these milestones offer. “WMABA has been navigating the socioeconomics and technical aspects of the collision repair industry for nearly 50 years. With their presence at trade conferences across the country, they are on the forefront of progress. This partnership with WMABA will be instrumental to the Mountain State, and we are ecstatic and honored to be members of the WMABA family. We are more than prepared for a brighter future.” For more information on WMABA membership and special events, please visit wmaba.com or contact Jordan Hendler at (804) 789-9649 or jordanhendler@wmaba.com. H&D
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NATIONAL
FEATURE STATE OF THE INDUSTRY ADDRESS: An Executive Director/ Administrator Roundtable
Jordan Hendler
(WMABA Executive Director)
The collision repair industry is a complex and ever-changing place, and few know this reality more than the six people included in the conversation you’re about to read. For this special Roundtable feature, we welcome industry representatives for an in-depth discussion of some of the industry’s most pressing issues and how each participant’s group is working to change things for the better:
Hammer & Dolly: What would you say have been the biggest changes to impact the industry in the time you’ve served in your current position?
Jordan Hendler: I’ve seen a lot of changes in the area of OEM repairs, including repair procedures and the certification programs. To me, they have revolutionized the industry and created an enormous chasm between those who follow and those who don’t. Aaron Schulenburg: The evolution of vehicle technology – both structural and functional – is something that our industry has always been challenged with. However, I think if you look at the last decade, I think there has been evolution by leaps and bounds as you look at lightweighting, unique materials and the introduction of fundamentals of autonomy. Those are some of the things that are creating the biggest shakeup.
Jillian Bukhenik: Technology is always changing, and with that comes significant challenges to the industry. As our vehicles become more sophisticated, so do our repair processes. Shops must make considerable investments in new equipment to keep up with manufacturer’s repair procedures.
Judell Anderson: Technology, technology and technology. New, advanced vehicle technologies are being introduced at an increasingly rapid pace. Although shifts in vehicle technology have always taken place and the collision industry has always adapted, electronic systems in today’s vehicles create new processes and bring a different skill set into play for shops than in years past. Technology, in general, has dramatically affected all aspects of the business, from the repair to business management/administration to developing and managing customer relationships. A second big change has been the rise and proliferation of the consolidators, which has led all shops to rethink their business models and processes to stay relevant and competitive in the marketplace.
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Sue Peterson (Wisconsin Auto Collision Technicians Assn. LTD – WACTAL Administrator)
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A multi-state conversation.
BY JOEL GAUSTEN
Aaron Schulenburg
(Society of Collision Repair Specialists – SCRS Executive Director)
Judell Anderson
(Alliance of Automotive Service Providers [AASP] of Minnesota Executive Director and AASP National Administrator)
Charles Bryant
(AASP of New Jersey Executive Director)
Jillian Bukhenik
(AASP of Massachusetts Executive Director)
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NATIONAL FEATURE Charles Bryant: We are presently experiencing the biggest changes to impact the collision industry since I’ve been involved. The changes in the design and complexity of modern vehicles, combined with the refusal of the insurance industry to acknowledge the changes and the costs associated with repairing these automobiles, has and will continue to cause havoc. Because of the suppressed Labor Rates being controlled by the insurance industry, shops simply cannot afford to buy the new and necessary equipment and pay a rate to repair technicians that would entice them to stay in the industry or attract new technicians to join the field.
Sue Peterson: Advances and changes in technology and computers has had the greatest impact. When I started, estimates were handwritten; now, some insurers are writing them based on photos of the damage.
H&D: The growth in automakers promoting the use of pre-and postrepair scans is just one example of the call for greater adherence to OEM repair procedures in this industry. Why is it important for repairers to follow manufacturer-recommended procedures at all times? SP: Liability. The thought of a lawsuit should be enough for every repairer to adhere to manufacturer-recommended procedures.
JH: The root of following the procedures would be to relieve yourself of liability and have an environment that promotes safe and proper repairs. When not following repair procedures that OEMs have specified, you are opening yourself up to the possibility of a lawsuit – or, worse, a death.
AS: Liability and safety – plain and simple. Those are the reasons. What I love about this industry is that it’s comprised of businesses that give back to their communities and help people who are in times of need. People need to know that a shop is going to repair their vehicles safely; when they put their kids in the backseat and their spouses in the front with them, that vehicle needs to function just as safely as it would have prior to that accident. That’s why we have to perform these things. My previous answer talked about how cars have evolved in functionality; they have evolved to such a point where if we simply connect to it and ask it, it will tell us what’s wrong with it. It’s not as simple as that, but it is. We are literally in an industry arguing over whether we should perform a pre- or post-repair scan that, in most cases, is being identified as required. It’s necessary to restore those vehicles. We’re having this debate because some parties don’t think that this information over why it is required is specific enough, without looking at the related advantages of simply performing that task every time. If the car can tell us that something is not functioning or calibrated, we should be listening to it. The debate over this is stepping over dollars to pick up pennies. If we can create a more efficient process by identifying what’s wrong with the vehicle up front, we should be doing it. If a manufacturer says something is necessary, we have to do it; otherwise, there is unnecessary liability placed on the shoulders of a repairer who chooses to disregard that – or is told to disregard that.
JA: To understand how important this issue is, you need look no further than the lawsuit in Texas, where a repair facility was sued for negligence for not adhering to OEM repair procedures. In my mind, it’s pretty obvious that the OEM that engineers, tests and manufactures a vehicle has the knowledge and expertise necessary – and is in the best position
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to determine how to safely and properly restore it back to pre-accident condition.
JB: As I have just mentioned, cars are becoming more and more technologically advanced; because of that, it is vitally important for repairers to follow manufacturers’ procedures for the safety and security of their customers.
CB: In the past, when an insurer would refuse to pay for items like blending, repairing damage on pinch welds from attaching the frame machine to the vehicle or wet sand and buff, certain shops took the position that they were not going to do the work because the insurer refused to pay for it. Not repairing these items or performing these procedures would not result in an unsafe vehicle. However, based on reports directly from the collision industry, certain – if not most – insurers these days are reportedly denying payment for many repair procedures that are based on OEM repair guidelines or position statements. Now, we have a completely different set of circumstances to deal with. If a collision shop thinks that they can avoid liability for not following OEM repair procedures when the failure to do so results in the passengers in the vehicle being injured in a future accident, I would warn them to think again – or consult an attorney. H&D: What are some industry-related issues that appear to be exclusive to your region [or the ones you represent] at the moment that could have a major impact on the greater industry moving forward? JH: We have very high density of collision repairers in our markets. I believe that exacerbates issues with reimbursement, prices or competitiveness that can also lead to poor decision-making on the part of repairers – including keeping a repair job that you are not qualified to have. When you feel like competition is too strong, I believe that can cause some people to justify cutting corners. Along with that, when you have so many repairers squished into a geographic area, you can also get a bigger group of supporters that rise to the top. We have a lot of certified repairers and independent repairers who believe in the right things. WMABA is lucky that way.
JB: There has been a trend throughout the industry of insurers encouraging their customers to use their applications and website to process claims. It is important that we continue to advocate that customers must receive a personal inspection. There have been far too many instances where a consumer will send in a photo that may appear to have minimal damage, but little do they know there are significant operational safety and/or emissions risks that have resulted from the accident.
JA: A hot topic right now for Minneapolis and St. Paul shops are local ordinances raising the minimum wage and mandating pay for sick and safe time. This is a trend that appears to be gaining traction in other areas of the country, as well. It’s one more example of shops experiencing increased costs of doing business but being unable to recoup those additional costs due to insurer suppression of Labor Rates. CB: We are constantly hearing about insurers refusing to acknowledge repair procedures mandated by vehicle manufacturers. When a repair facility fights back, the steering starts and certain insurers are relentless
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in their attempt to control the cost of repairs to an amount they want to pay or make sure the shops that push back have their work steered away.
SP: For the most part, concerns of repairers in Wisconsin mirror those across the country. There was one issue that appeared to be unique to Wisconsin – the legality of removing and replacing vehicle information labels that contain a VIN, which was resolved this summer legislatively.
H&D: Some associations maintain a very active presence in the legislative arena, while others pursue legal methods to effect change in the industry. Generally, what does your association see as the best course of action in addressing issues with the laws and regulations in the region(s) you represent? JH: Our association has proposed some legislation, but generally, we have an attitude of ‘watch and promote’ or ‘identify and destroy.’ We monitor legislative sessions for activity relating to our industry. If a bill doesn’t help, we offer changes or kill tactics; if it helps, we support it and participate in the hearings. We know that repairers pursue legal options in our market, but that hasn’t been something we’ve dealt with yet at WMABA. If it came to a situation our Board felt was necessary, I’d bet they would consider that route as an option.
JA: Since its inception in the 1950s, AASP-MN has retained a lobbyist and been active in the legislative arena. The association initiates, monitors and responds to legislative and regulatory activity at the state and local level to ensure positive outcomes for its members. We have helped our members’ bottom line by changing taxation on paint and materials as well as passing numerous pieces of legislation that strengthen the collision repairer when it comes to insurer claimshandling practices. For example, we’ve passed legislation that prohibits insurers from requiring aftermarket parts, unilaterally and arbitrarily disregarding a repair operation or cost identified by an estimating system, adjusting a repair shop estimate without conducting a physical inspection of the vehicle and requiring that shops use a particular vendor for parts procurement. That being said, we’ve had our fair share of frustrations as well! We recognize that, depending on the issue, legislative action may not always be the only or best course of action. We evaluate each issue on a case-by-case basis and develop a strategy we think has the best chance of bringing about the desired outcome.
JB: Our philosophy is death by a thousand cuts. The more avenues of change we pursue, the better our chances for success. In addition to our Labor Rate Bill, we have filed four legislative initiatives to combat issues like steering, aftermarket parts and challenges with the configuration of the Auto Damage Appraiser Licensing Board [ADALB] in Massachusetts. Since May of last year, we have worked with the ADALB on changes to their regulations. Many of the changes sought by the association have been included in their recommendation to the Governor. The Automobile Insurers Bureau [AIB] filed a new Massachusetts Automobile Insurance Policy, which was approved by the Division of Insurance. Due to overwhelming pressure from AASP/MA, the AIB withdrew their standard auto policy. A new policy was filed on October 1, 2016 that incorporated key changes sought by the association. We continue to monitor policy changes submitted to the Division of Insurance. AASP/MA continues its work before the DOI to advocate for enforcement of their regulations. Specifically, AASP/MA is currently advocating for the enforcement of
steering regulations through plan enforcement. We continue our work with body shops in representation of their customers before the Attorney General’s Office in an effort to advocate for consumer protections. We provide our members with educational materials for delivery to their customers.
AS: For us, because most legislation is handled at a state level and we’re a national group, I think our role becomes a little different. We have a very wide affiliate network of over 40 state associations from across the country. The role we have in this arena is in connecting groups together and facilitating communication and understanding what’s going on out there. For example, when there is an attempt to remove consumer consent laws in Arkansas, the other affiliates become aware of effective arguments against those efforts to help legislators and consumers understand what that means to them. The different state associations are on the same page, and they’re following each other’s progress and challenges.
SP: WACTAL has been working to effect change legislatively and by working with various state agencies. Consumer choice legislation passed in November 2015 gives consumers the legal right to have their vehicle repaired at the shop of their choice. This summer saw the passage of the Vehicle Information Label Bill. In Wisconsin, it’s now legal to remove and replace a vehicle information label that contains a VIN when necessary as part of the repair.
CB: AASP/NJ has gone down the legislative path in an effort to assist our members with the many problems that plague the industry. Unfortunately, the strong influence the insurance industry has over the legislative process makes it almost impossible to succeed in this arena. At the present time, it appears that the only way change is going to come is when change is mandated by the legal system. H&D: There is a clear and concerning shortage of new technicians entering this field. What is your association doing to address this issue? What can members do more of to ensure a strong workforce moving forward? JH: Putting out an ad for an ‘A’ tech with 10 years’ experience is no longer a viable option if you have a growing business. WMABA recently decided to pursue grants for our Education Fund, and we are also simultaneously looking at applying for a 501(c)3 status with the IRS, which would make us a charitable foundation. The purpose would be to gather and gain resources to assist in the education of either students or other people wanting to apprentice into the collision industry. If repairers had options to have the training period subsidized, I think they would be far more likely to participate and hire.
AS: We’ve been fortunate that we’ve had a great amount of growth in SCRS and our membership. One of my favorite parts of this job is reaching out to every new member and doing an intake interview. One of my questions is always, ‘What is the biggest issue facing your shop?’ Ninety-five percent of the time, the answer is that there aren’t enough skilled technical representatives in this industry to fill the need. It’s obviously an area where we know there needs to be work done, and I think it’s a challenge that’s facing all technical fields – not just the collision repair industry. From a resource standpoint, we’ve worked with other groups – like the Auto Care Association, SEMA and others – to November 2017
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NATIONAL FEATURE
build the SCRS Career Center, which ties into a greater automotive job board so that we can appeal to people. Maybe there are people who have an interest in automotive or went to school for something automotiverelated, but never considered the collision repair industry as a place they would seek out for a job. We’re working on finding ways to appeal to people who may not be in the industry yet but have great potential to do so. We’re also working on a grant research project with a researcher who has helped us identify workforce development funds across all 50 states. We’re pulling that information together to help our affiliates understand what they can go after, either governmental- or foundational-level funds that can help workforce development in their state and help them work with other states to do it in a collaborative process. Additionally, these state affiliates can use the information to educate their members on how they can individually go after those funds.
JB: AASP/MA has always had a strong relationship with our vocational technical schools. Accordingly, we offer free membership to collision repair educators.
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Over the last two years, we have hosted our industry meetings at schools to encourage participation from educators and students. Getting students involved in the industry is imperative. I know many of our members participate on Advisory Boards, which provides the schools with a unique perspective. I would encourage shops to reach out to area schools and offer to participate in their job fairs or other events that give students an idea of what types of careers the collision industry offers.
JA: In 2016, AASP-MN took a leadership role to found and fund MNCARS [Minnesota Careers in Auto Repair and Service], a nonprofit organization whose sole purpose is to promote careers in the automotive industry, recruit young people into the state’s college-level automotive service and collision repair programs and, ultimately, into our industry workplaces. We started from scratch, building a content-rich website [carcareers.org], social media presence, marketing materials, counselors’ kits and other collateral to educate our target audiences [‘tinkerers,’ school counselors and parents] about industry careers. Our industry speakers’ bureau and college
student ambassadors have been in front of over 8,400 students at high school and middle school career fairs and presentations since January. We’ve connected with over 1,000 school counselors, and our social media campaign has reached tens of thousands of Facebook, Instagram and Snapchat users with the MNCARS message: ‘The automotive industry has a lot to offer – rewarding and varied career paths with high earnings potential in a high-tech, highdemand industry.’ AASP-MN believes this is the most critical issue facing the industry; with industry support, we have invested over $200,000 to make a positive impact for Minnesota’s auto service and collision repair businesses. Members are going to have to engage locally to promote industry careers and support and advocate for automotive programs at the high school and college level. This means getting involved on school Advisory Boards, participating in job fairs, career days and job shadowing opportunities in their community and volunteering their time and financial support to ensure that the auto programs that still exist remain viable.
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CB: AASP/NJ has a Labor Pool to locate and then place qualified repair technicians in shops that are members of the association as well as locate shops in AASP/NJ that are looking for qualified repair technicians and then bring the repair technicians to those members. The Labor Pool has existed for well over 20 years, and it is a free service.
SP: Members need to engage and take advantage of the opportunities to promote our industry and encourage individuals to pursue a career in collision repair. A registered [adult] apprenticeship program is in the final stages of development in Wisconsin. Development of this program was a concerted effort by the industry, Wisconsin Workforce Development and the Wisconsin Technical College System. Wisconsin also has an Auto Collision Youth Apprentice program that integrates schoolbased and work-based learning. H&D: OEM certification programs are growing in size and scope. How will this ultimately affect how shops will conduct business, market their services to customers and grow their economic footprint in the future?
JH: In my opinion, OEM certification programs are going to be - if not already - the difference between Shop A and Shop B, until the autonomous car is so prevalent that we become something else. When it comes to certification programs, they require the use of proper equipment, proper procedures and compliance to the manufacturer program requirements. This makes the OEM an important relationship for the shop, so they can maintain their ability to acquire new customers under that umbrella. It helps them define their marketplace outside of a DRP relationship. This gives independents another – maybe an even more – viable option.
the collision center they’re dealing with has a connection with – and validation from – the party that built their car. I think there is a lot of value in it, but one of the challenges our industry has faced in maintaining pace with the technology is that you do have to continually invest to be able to stay up with it.
JB: Certifications can be valuable to shops. While there is a significant investment to become certified, they can be very beneficial to bringing in and retaining customers. JA: These programs are going to be a gamechanger for the industry. It’ll be like DRPs on steroids. A key difference? In the DRP scenario, steering happened solely on the basis of shops’ willingness to offer an insurer a concession of some kind, be it price or otherwise. But it’s pretty hard to argue that steering shouldn’t happen on the basis of a shop’s ability to properly and safely repair a vehicle, as would be the case with OEM certification. Questions remain, like who’s going to police the programs to make sure repairs are, in fact, being done properly? And will all shops who meet the certification requirements be allowed to participate, or are
some going to be shut out? Will we end up trading one master [insurers] for another [OEMs]? These programs definitely create higher barriers to entry for new shops just starting out. And for existing shops, they require an investment in training and equipment that may or may not be feasible for everyone. Shops are going to have to be selective about which of the certification programs work for them and then gear their marketing and operations around the specific ones that will bring the highest economic benefit. And while I think these programs will have a profound impact in larger metropolitan markets, it remains to be seen how they will play out in more sparsely populated, rural areas.
CB: Like it or not, in my opinion, soon shops will need to pick the type or types of vehicles they like to repair the best and then get certified for those types of vehicles. Because of the sudden advancements taking place in the design of vehicles, all vehicle manufacturers will soon likely demand that shops be certified in order to purchase parts and repair their type of vehicles.
AS: I think it will affect it, and I think it provides advantages and challenges. It is not necessarily inexpensive to create a culture where you make the decision that you are going to continually invest in the tools, equipment, facility, training and skill set that are necessary to comply with those certification programs. There is duplication across some of them, but it can be costly. On the flipside, it can also produce a return for the shop that’s committed and has built a culture within their business that they’re going to follow the OEM procedures, meet the certification requirements and set themselves apart for the consumer. I think consumers want to know that November 2017
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NATIONAL FEATURE
H&D: What are the most important things that your individual members can do at their shops to help strengthen the overall industry? CB: Join and support AASP/NJ.
JH: Keeping up with proper OEM repair procedures – especially the required ones – will help alleviate those shops that are doing repairs poorly from adversely affecting the entire industry. When a shop doesn’t even know a proper repair procedure and doesn’t
charge for it because they don’t know, they are enabling carriers to say that other shops ‘don’t charge for that’ when in fact it’s not that they don’t charge for that – it’s that they don’t know they should be performing the operation regardless. A lot of insurers are amenable when documentation is provided. If you don’t know how to find documentation for a procedure or repair method, then you need to ask us or another knowledgeable repairer you can trust. More importantly, you need to find it so you can do it right for your customer. This all helps everyone!
JA: Operate their business in a professional, responsible and ethical manner. Invest in the employee education/training and facility improvements necessary to safely and properly repair today’s vehicles. Be a good employer. Engage and be good citizens in their community. Take advantage of resources like the Database Enhancement Gateway [DEG] that will not only benefit their own shop, but the entire industry. Of course I’m biased here, but I feel strongly that each and every shop owner should seek out, support and participate in an industry organization that works proactively for the betterment of the industry. JB: We are only as strong as our members. Without you, we don’t have a voice. We need the industry, not just our members, to get involved and support us. We are the only association in Massachusetts advocating on their behalf. We cannot build the success of the auto repair industry without the industry behind us. There are a number of ways to get involved: Attend meetings and events, donate to our Political Action Committee, call your legislators and encourage your fellow shop owners to join.
AS: I don’t know that there’s a collision repair business out there that hasn’t heard about the guy or gal down the street. There are so many shops that are trying to do the right thing but are influenced because there is supposedly someone down the street who’s willing to do it for less or do it the wrong way. I think the best thing that individual members can do for their business that also strengthens the overall industry is to not be the one down the street that’s being used as the example against everyone else. Understand the safety and liability implications that the work you produce has on your business and your customers, and create unwavering and uncompromising cultures that protect against them. I think if everybody committed to do that for their business, the industry as a whole would be significantly stronger. SP: The answer to this question appears to be simple and applies to non-members as well: Stay involved and stay informed. Remember that the vehicle owner is the customer. Most importantly, if you’re not a member of your state or regional association, join today. H&D
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Page 1
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Contact these Nissan dealers for all your parts needs: Passport Nissan 5000 Auth Way Suitland, MD 20746 Phone: 301-423-6930 Fax: 301-423-2965
Sheehy Nissan of Manassas 9010 Liberia Ave Manassas, VA 20110 Toll Free: 800-969-4778 Local Direct: 703-361-0377 Fax: 703-361-5165 martinfisher@sheehy.com
Sheehy Nissan of White Marsh 8115 Belair Rd. Nottingham, MD 21236 Parts: 443-270-9001 Parts Fax: 443-270-8993 wmparts@sheehy.com sheehynissanofwhitemarshparts.com
November 2017
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Unsurpassed Quality. Genuine Hyundai Parts.
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For Genuine Hyundai parts, contact these Authorized Hyundai Dealers. Fairfax Hyundai 10925 Fairfax Blvd. Fairfax, VA 22030 Phone: 703-273-5188 FAX: 703-352-3115 E-mail: parts@fairfaxhyundaiinc.com
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Fitzgerald Lakeforest Hyundai 905 North Frederick Ave. Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
November 2017
Malloy Hyundai 1880 Opitz Blvd. Woodbridge, VA 22191 Parts Direct: 703-490-8263 Fax: 703-490-3864 E-mail: hmkparts@aol.com
Checkered Flag Hyundai 3033 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: 757-687-3463 Fax: 757-687-3468 hyundai.checkeredflag.com
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Š 2017 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.
Diagnostically speaking, there is no substitute. Porsche technology. Porsche Genuine Service & Parts.
Contact one of these authorized dealers. Porsche of Rockville 1125 Rockville Pike Rockville, MD 301-296-2870 Fax 301-762-5055 rockville.porschedealer.com
Euroclassics Porsche 11900 Midlothian Turnpike Midlothian, VA 804-794-3399 Fax 804-794-9771 euroclassics.porschedealer.com
Porsche Silver Spring 3141 Automobile Boulevard Silver Spring, MD 844-413-6929 Fax 301-890-3748 silverspring.porschedealer.com
Checkered Flag Porsche 2865 Virginia Beach Boulevard Virginia Beach, VA 757-687-3483 Fax 757-687-3490 checkered-flag.porschedealer.com
Porsche of Arlington 3154 Jefferson Davis Highway Arlington, VA 703-684-8835 Fax 703-518-0467 arlington.porschedealer.com
November 2017
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TECHNICAL
FEATURE OEM REPAIR INFORMATION FOR ESTIMATING AND TO PROTECT YOUR LIABILITY
Having access to original equipment manufacturer (OEM) information is imperative to everyone in the collision repair process: All employees, estimators, blueprint techs, structural techs, body techs and even the refinish techs. Your goal and obligation is to ensure proper repairs to your customer: The vehicle owner. (While you are not technically obligated to the insurer, the customer would need to authorize repairs; arming them with proper information is key to their successful negotiation with an insurer, if they are dealing with them directly at any point.) Following the OEM procedures and protocols will not only lower or limit your exposure to liability, but it will also assist in reducing the number of repair days and supplements and ensure that warranties are honored. All great things for our customers! A properly run repair facility with a blueprint process will allow you to write an accurate final invoice the first day the vehicle is touched, and the OEM repair information is only one part of the standard operating procedure (SOP) you need to enforce among your employees. Everyone must be accountable for their job duties. You should only need a supplement when the insurer will not pay to reimburse the vehicle owner properly for what you are charging to repair the vehicle, or when the issue is due to an incompetency. You must stop wasting time by re-keying and just give the insurer your final invoice every time you supplement them until they meet the price you are charging the customer. If you are not pre-measuring the vehicle, you are not performing a proper blueprint or doing 100 percent teardown. Stop lying to yourself. Just like you cannot see what diagnostic trouble codes (DTCs) might be present in the vehicle electronic systems, you cannot tell component misalignment by looking at gaps alone. While writing the estimate, a.k.a. the damage report final invoice, estimators (damage assessors) must have the OEM repair information to properly determine what can and cannot be repaired, the type of substrate, the additional materials and products required and the actual costs of repairs. A recommendation from the manufacturer of a product is a requirement. (Look for an article on this soon.) The implied warranty of merchantability requires that the product and its components meet certain minimum standards of quality, chiefly that the product be fit for the purpose for which it was designed. This requirement for OEMs includes meeting the Federal Motor Vehicle Safety Standards (FMVSS). The implied warranty of
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fitness for this purpose imposes a similar requirement in cases in which the seller (the OEM and the dealer) knows or has reason to know (research and development and testing) of a purpose for which the goods are required, and in which the buyer (the vehicle owner and repair facility) is relying on the seller to select or furnish suitable goods. The seller then warrants that the goods are fit for that purpose. For example, assume that the OEM tells the repair facility that the recommendation for replacement of the component (e.g., lower front uni-rail) is to section the uni-rail at Location A (short partial replacement sectioning) or Location B (longer partial replacement sectioning). If the sustained damage exceeds Location B, then full component (the entire uni-rail) replacement is required. In this example, the seller is making an implied warranty of fitness and safety. This means that the recommended repair procedure will ensure the vehicle will operate and perform as designed and intended in normal driving conditions and in a subsequent collision event. Additionally, this implies that under normal operation or in a subsequent collision event, the component or systems will also perform and operate as designed and intended. If the recommended repair procedures or recommended replacement components are not adhered to, then the liability would fall solely onto the repairer for deviating from the recommend procedures. Estimators must be well-versed on how to look up the OEM repair information. Keep in mind that this will require studying and practicing, and probably also on your own time. It is your responsibility to perform at your job and to acquire the proper knowledge. Furthermore, the estimating database provider integrating “SOME repair information� is not the answer, and many third-party companies are also missing a lot of information. Therefore, you must go to the source: The OEM.
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Keeping your livelihood safe.
BY LARRY MONTANEZ III, CDA
Why must so many in this industry circumvent the correct source, only to obtain partial information? Laziness and greed are generally the culprits that make facility owners and estimators divert from the OEM, and gravitate to the assumed “easier way,” which is generally not easier, nor correct for that matter. Too many in the collision repair industry feel that experience supersedes OEM procedures. Your liability can be exposed. (Remember the John Eagle Collision case.) The amount of years that you have been performing a particular operation does not qualify you as an expert. Without continuing annual training and education on the advancements of vehicle design, technology, substrates and joining methods, your experience is meaningless. Over the past few years, vehicle designs and materials have not only changed dramatically, but electronics (safety features) and joining methods have also added to collision repair facilities’ investments in newer equipment and training techniques. Providing everyone in your shop with the latest repair data (mechanical and collision) means that the repair work your shop is performing will be completed in a competent, efficient and safe manner. Factory manuals are written for mechanics who must replace components that have a life expectancy and fail due to design flaw or exposure. The flow charts (diagnostic tests) are written based on the component failure and not based on applied impact forces sustained in a collision event. Additionally, the procedures for electronic relearning or resetting (sometimes referred to as reinitializing) only consider replacement and not removal and installing (R&I) operations. A mechanic only replaces a component, and the procedures will only mention other adjacent components and systems affected by the replacement of the non-operational component. For this reason, collision repair professionals must understand that when replacing and/or repairing components, they must review electronic and mechanical replacement procedures, regardless of the fact that all they did was R&I a component. One major misconception we hear all the time in the collision repair industry is: “The information should be free and should be with the part when we buy it.” No, it should not. The information is available online at the OEM technical website. Almost all of the OEMs offer service and repair information on their technical websites. Some ways to access these sites include the following: Google it: “OEM collision repair information” or “(OEM brand) collision repair information”
I-CAR OEM Repair Technical Information (rts.i-car.com/ oem-information.html) OEM1STOP (oem1stop.com) SCRS (scrs.com)
The Database Enhancement Gateway (DEG) (degweb.org)
Many of the OEs offer some information for free online, but the information can be limited or (in some cases) incorrect, outdated, or the last to be updated. For a nominal fee, you can access all the OEM vehicle information, which includes collision, mechanical, electrical repair manuals and service/maintenance intervals. During the repair process, the repair information must be accessed multiple times. (It can be helpful to download the manuals as PDFs and save them to the repair file.) The damage assessor will add the charge for this information – as well as the labor time to research and read the material – to the final invoice. Some examples that will be covered during my SCRS Repairer Driven Education class (“Estimating: How to Find, Read and Understand OEM Repair Procedures,” November 1, 3pm-5pm) at the 2017 SEMA Show in Las Vegas include: OEM procedures for pressure filling and purging coolant systems after replacement of the antifreeze/coolant; Lane Departure and Parking Aid re-aiming after removal and installing, or replacement of a bumper fascia/cover; Removing wheels that have galvanic corrosion/may require brake rotor replacement; Post-collision SRS inspection requirements; New sectioning locations on outer panels;
Material part numbers for joining materials (such as adhesives, foams, self-piercing rivets, flow drill screws and rivets); and Camera re-aiming due to removing and installing a door assembly.
As always, I hope this article has given you some new insight and a better understanding of the OEM procedures. If any questions arise, please feel free to contact me. Collision Hub will be offering online selfstudy courses on understanding OEM repair procedures starting in the first quarter of 2018. For more information on SEMA 2017, visit scrs.com/rde. H&D
Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.
Executive Director’s Thoughts
I’m not always the one to cut to the chase, however the points made here are just that. At WMABA, we adhere to the same position as SCRS and many others: If the OEM has a procedure or recommendation, then that is what the repairer must do.
November 2017
- Jordan Hendler
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Audi dealers strive to make you an Audi Genuine Parts fan •
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Rockville Audi 1125 Rockville Pike Rockville, MD 20852 Parts Direct: 301.296.2870 Parts Fax: 301.762.5055 www.rockville-audi.com
Audi Owings Mills 9804 Reisterstown Road Owings Mills, MD 21117 Parts: 877-411-6825 Parts Fax: 410-372-3380 www.audiowingsmills.com
Audi Annapolis 1833 West Street Annapolis, MD 21401 Parts Direct: 443.482.3280 Parts Fax: 443.482.3281 www.audiannapolis.com
Audi Chantilly 14839 Stonecroft Center Court Chantilly, VA 20151 703.956.2100 Fax: 703.956.2139 www.audichantilly.com
Audi Silver Spring 3151 Automobile Boulevard Silver Spring, MD 20904 844.413.6929 Fax: 301.890.3748 www.audisilverspringparts.com
Audi Virginia Beach 2865 Virginia Beach Boulevard Virginia Beach, VA 23452 Toll Free: 800.277.2122 Parts Direct: 757.687.3483 Fax: 757.687.3490 www.checkeredflag.com
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November 2017
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GUEST
FEATURE The “Era of Touchless Claims for Insurers” The “Era of Touchless Claims for Insurers.” This statement came out in an industry publication recently, and it got me thinking about how insurers have been trying to force this idea on the collision repair industry for years now. It became more apparent than ever this past summer, with everything from photo estimating to long delays in supplement handling, both hitting with full force. This current mode of cost cutting on labor, brick and mortar for insurers has been a continued focus of their business plan for more than 10 years. More recently, competition from startup insurers (for example: Internet-based companies) has caused a shift in policyholder loyalty in favor of price. Insurers are seeing the direct impact of this, especially with larger, personnel-laden companies. With these changes in claims behavior also comes the fact that senior staff members are being pushed out in favor of less expensive new hires; again, in an effort to reduce costs. It has effectively resulted in
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a major knowledge gap in technical expertise specific to damageability, repairability and repair production. Consumers want apps. Consumers want ease of use. But consumers have no idea what the true cost is regarding their vehicles. They’re not getting what they are owed or in the timeframe it should be handled. Consumers need to be educated on the true cost of speeding up a process and the steps that are being missed. Gimmicks disguised as customer service are hiding the fact that “short pays” are increasing in frequency and supplements are occurring on their “estimates” nearly 100 percent of the time. Claims management is becoming void of folks who understand the realities of collision repair and the associated process and costs. Along with this is the understanding of the intricacies of balancing the claim and the repair. So what are we left with? We have folks who preach “partnerships and ecosystems” while pushing collision
repairers further underwater. In an effort to create what they call “optimal customer service through improvements in claim processing speed,” they continue to develop interesting optics and gimmicks. Here’s an example of this issue: A customer brings a photo-estimated vehicle to the store, where it is disassembled on September 6. The original photo estimate is $800. The supplement generated the following day is for $1,200. The supplement is called in; per the insurer, it won’t be able to looked at for nearly two weeks. They acknowledge 12 days from disassembly to supplement inspection/handling. Additionally, the required repair time will be added to this delay. Unfortunately, and in most cases, 80 percent or more of what should have been initially identified as necessary for the repair is “missing” from the estimate. Yes, that means that the original “photo estimate” is identifying only a minimal percentage of the damage. What does this mean for the safety of the consumer? What does this mean for a vehicle with advanced safety systems that may or may not be functional after the loss? What happens if that improperly estimated – and now unsafe – vehicle crosses the centerline and hits that unsuspecting family going in the other direction? What happens if a damaged part misidentified as safely drivable suffers a catastrophic failure and the vehicle is uncontrollable? The most unbelievable and seemingly immoral part of this scenario is that the carrier still insures the car. How and why would they not want to identify everything that is damaged or potentially damaged immediately, and pay for its proper repair? The question for the collision repair industry is: What does all of this mean for the repairer? The industry can’t change the direction the insurer has chosen. However, as a business owner, you could charge for all labor associated with repair administration. Why would the repairer do such a thing? To cover the cost of administrative processing requirements and the personnel required to complete them. These “new requirements” will increase the repairer’s fixed costs significantly, as these costs can’t be absorbed.
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A frightening new era.
BY KEITH MANICH
If this were truly a “collision repair ecosystem” as some insurers (and, frankly, some repairers) claim, it would be a symbiotic relationship where everything done is advantageous to all, but that is not the case here. This is a parasitic relationship where “one is habitually relying on or exploiting others” and where one side dictates everything that is to occur, when it will occur and how it will occur. The other side takes what comes and has to be happy with it or risk losing the potential to get anything at all. One worries about profits, and the other worries about survival. One claims to know everything about the repair process, but has amnesia when it comes to paying for it. The other is the repair professional that has repair standards and supporting documentation for what they are identifying as necessary, only to have it
marginalized with, “We don’t pay for that.” So what does the repairer do? The repairer must be prepared and know exactly what the insurer’s next play is, then be ready to counter with facts and the support of the consumer. The image of the collision repairer must change to one of a sophisticated business with a plan that protects the folks who depend on them to repair vehicles properly, their investment and their livelihood. Advertise in a way that solidifies your reputation as a repair professional. Anything that compromises that image must be eliminated. Offer to assist the consumer in cases where they are being asked to “photo estimate.” Help them by removing parts to expose all the damage. You can even take pictures for them. Market your willingness to do so. This goes a long way in gaining the
consumers’ trust and business. When discussing repairs, provide the documentation that supports the repair decisions you have made. Make sure that the consumer has all the relevant repair information for their vehicle. Set expectations – but more importantly, meet them. The more you share, the better you look in the eyes of the consumer. Is steering still going to occur? Likely so, but the impact of steering will diminish over time as your credibility increases. The collision industry has to unify regarding general attitudes, especially as they do a better job of becoming certified in OEM programs. There should be a value associated with that activity. As this era of “touchless claims” is occurring, think of it as a time to re-establish the collision industry as a business community outside of third-party influences.
Keith Manich began his journey through the collision repair industry as a body technician and painter over 30 years ago, progressing through management, insurance claims, automotive engineering, testing and training and technical oversight at an industry MSO. He held roles in senior management in training and research at one of the nation’s premier collision research facilities as well as traveling worldwide in his role as the center vice president. As a trainer and coach in damage analysis and damage blueprinting, he has also been responsible for developing SOPs, financial impact models, job aids and repair personnel job descriptions for collision repairers. He brings unique skill sets to the Automotive Training Institute as well as the industry. He regularly participates at collision industry events delivering immediately impactful information for collision repairers. His passion for repair process efficiencies, oversight of established processes and the designing and implementation of new repair and production procedures are never ending. He has an unquenchable thirst for knowledge which has helped to provide decades of properly repaired vehicles for their owners. He works with and is an active participant in many industry organizations such as CIC, SCRS, ASA, I-CAR, AMI and WMABA (just to name a few), and he has been a guest speaker at SEMA, NORTHEAST®, and other industry conventions. His productivity tips can be seen in Hammer & Dolly, where he is a featured writer. He can be reached at kmanich@autotraining.net.
November 2017
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November 2017
Re-establish the contract of repair with your customers. Clearly identify what is expected when someone does business with you. Have them do as the rest of us do with other business professionals. Have insurers or independent adjusters make an appointment to meet with you. We don’t go into any other business and expect to walk through a production environment questioning what their workers are doing or why it’s being done. Demand professionalism and respect to be extended to you. Pricing needs to reflect the additional fixed costs associated with the administrative tasks being added to the repair side of the industry. According to insurers, with all of the recognized savings, there are plenty of available resources to be redirected to the repairers to cover their administrative expenses. The cost to cover a staff adjuster far exceeds that of an administrative employee in the repair industry. Know what your administrative employee costs within your fixed costs and make sure that your Labor Rates effectively cover it. If they don’t want to pay it, you could pass the cost along to the consumer (just as it’s done in the medical profession). The consumer can take the initiative to return that cost back to the insurer. If the insurer denies payment, be sure to get the customer involved in the discussion so they can present the information to the insurer. As the insurance contract owner, they have the right to demand in writing the reason something isn’t being covered. If that is unsuccessful, help the consumer redirect the denial letter to the insurance commissioner of your state. Repairers should be ready to assist consumers with resources and information about their rights and the state law relating to insurance contracts. This will help them get support and payment within the contract of repair. To use an overused phrase, “it is what it is.” If the vehicle has to be fixed and labor and parts are required, the repairer should be paid. It shouldn’t matter if X, Y and Z down the street “don’t charge for it.” They can put their businesses at risk; that’s their decision. Repair professionals shouldn’t follow risky business practices because they are common in the market. Once it is understood that the days of taking advantage of the repairer are behind us, the “Era of Re-establishing Collision Repair Professionalism” will begin. H&D
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IF OFFERING ONLY ORIGINAL MINI PARTS IS A CRIME... THEN YEAH, WE’RE GUILTY. At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function.
For Original MINI parts, contact any of these authorized MINI dealers. MINI of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 fax: 410-349-2586
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MINI of Sterling 21826 Pacific Blvd Sterling, VA 20166 888-954-8222 fax: 571-434-7727
Crown MINI 8710 West Broad Street Richmond, VA 23294 804-527-6860 fax: 804-965-6254
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MINI of Montgomery County 621 N. Frederick Avenue Gaithersburg, MD 20879 Parts: 240-238-1204 Parts fax: 240-238-1493
MINIOFMONTGOMERYCOUNTY.COM
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© 2017 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
November 2017
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WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it. You want the best part for a Toyota, but you’ve got to know when and how much. Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”
ToyotaPartsAndService.com
©2014 Toyota Motor Sales, U.S.A., Inc.
For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Antwerpen Toyota 12420 Auto Drive Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com
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Checkered Flag Toyota 5301 Virginia Beach Boulevard Virginia Beach, VA 23462 PH: 757-687-3443 FAX: 757-687-3437 www.checkeredflag.com
November 2017
Ourisman Fairfax Toyota 10441 Lee Highway Fairfax, VA 22030 Toll Free: 800-626-2236 Direct: 703-273-2236 Fax: 703-385-8411 fairfaxparts@ourismanva.com www.ourismanva.com
Younger Toyota 1935 Dual Highway Hagerstown, MD 21740 Phone: 800-296-1190 Fax: 301-733-5465
Koons Toyota Annapolis 1107 West Street Annapolis,MD 21401 Phone:(800)262-3330 Fax:(410)280-6361
dthompson@youngertoyota.com
roy.easter@koons.com
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What’s the difference between “Certified” and CAPA Certified?
Let us count the ways: Real testing by real testing professionals who do nothing else. In a real testing facility. Against real standards—so real they’re published for all to see. Everything out in the open. Complete transparency. That’s the difference between apples and oranges—and what separates CAPA Certification from “certifiers.” Which is why CAPA created the first true automotive crash part certification program in the industry over 29 years ago. To eliminate surprises and provide the certainty of true quality to everyone whose livelihood—or even whose life—depends on a quality repair. What people think of you is important. So you know what replacement parts to insist on. The only genuine replacement parts tested and found good enough to earn the yellow and blue CAPA Quality Seal. Because what people think of us is important, too.
TM
If it isn’t CAPA Certified, it isn’t a genuine replacement part. capacertified.org
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KEEP IT GENUINE
INSIST ON GENUINE GM PARTS
We stand behind our product, providing collision repair professionals and vehicle owners peace-of-mind and confidence. Contact these Genuine GM Parts dealers for all your parts needs: NU CAR CHEVROLET 172 North Dupont Highway New Castle, DE 19720 Phone: 800-633-6606 Fax: 800-346-5285 e-mail: parts@nucar.com www.nucar.com
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OURISMAN CHEVROLET 4400 Branch Avenue Temple Hills, MD 20748 Phone: 301-899-6990 Fax: 301-899-9375 www.ourismanchevrolet.com
November 2017
POHANKA CHEVROLET 13915 Lee Jackson Memorial Highway Chantilly, VA 20151 Phone: 888-266-2993 Direct: 703-502-3729 Fax: 703-968-0932 www.pohankachevrolet.com
RADLEY CHEVROLET 3670 Jefferson Davis Highway Fredericksburg, VA 22408 Phone: 800-355-8202 Direct: 540-898-0055 Fax: 540-891-2074 www.radleychevrolet.com
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Mark Schaech, Jr.
(410) 358-5155 mark@marksbodyshop.com
PRESIDENT’S
MESSAGE WELCOME, WEST VIRGINIA! I can’t think of a more exciting time to be a part of WMABA. As discussed elsewhere in this issue, we recently expanded our footprint by welcoming West Virginia to the states we represent. This new union came after months of hard work and is the result of our strong commitment to create a louder voice to fight for the issues that affect our livelihoods. Adding these special collision repair professionals allows us to represent a much wider demographic when defending or defeating legislation at the State House that aims to alter how we do business. This expansion also provides our members with more comprehensive information when we conduct our annual Labor Rate Survey (see page 18) or host education and training events. It’s a real thrill to know that we’re approaching the end of 2017 stronger and more confident in our mission than ever before! Please check out this month’s cover story to learn more about how this critical chapter in our history came to be. I’m incredibly proud to be a part of WMABA during this important time in our association’s history. I look forward to working
with my West Virginia peers and the rest of our membership as we continue to strengthen the success of our industry. If you would like more information on WMABA, please reach out to Executive Director Jordan Hendler at (804) 789-9649 or jordanhendler@wmaba.com. H&D
WE NEED YOUR LEGISLATIVE CONTRIBUTION! I appreciate WMABA working on my behalf at the state capitol(s)! Here is my contribution to the legislative efforts.
P.O. Box 3157 • Mechanicsville, VA 23116
Name: ______________________________________Company: __________________________________ Address: __________________________________________________________________________________ City:____________________________________________State: ______________________Zip: ________ Phone:
______________________________Email:
Donation Amount: Check Enclosed
$50
$100
____________________________________________ $500
Other ________________
Credit Card (Visa, Amex, MC)# __________________________________________________________ Exp: ________
Name on Card: ______________________________Signature: __________________________________ November 2017
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An association fostering the exchange of ideas and providing a voice and support for the collision repair professional.
OFFICERS
PRESIDENT: Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155
VICE PRESIDENT: Torchy Chandler torchy.chandler@gmail.com 410-309-2242
SECRETARY: Phil Rice
TREASURER: Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
phil@ricewoods.com 540-846-6617
BOARD OF DIRECTORS
PAST PRESIDENT: Don Beaver don.beaver3551@gmail.com 443-235-6668
Rodney Bolton rbolton@aacps.org 443-386-0066
Barbara Chase Kevin Burt kevinburt@walkermillcollision.com barbara@siskautobody.com 301-855-5525 301-336-1140
Position Your Business as a Leader! Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment. WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, VA and WV collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities. Automotive collision repair facilities in Maryland, Virginia, West Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level. WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer & Dolly.
EXECUTIVE DIRECTOR: Jordan Hendler jordanhendler@wmaba.com 804-789-9649 Ben Gibson Bill Hawkins Ashley Kruger bgibson@harrisonbodyworks.com whawkins@mybmwannapolis.com akruger@baughautobody.com 804-355-8151 410-349-2578 804-285-8045
Contact Executive Director Jordan Hendler to find out how WMABA can amplify YOUR voice in the collision repair industry. Danny Szarka dszarka@mileone.com 410-525-1000
Steven Krieps srkrieps@live.com 304-755-1146
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For Genuine Subaru Body Parts, contact these Authorized Subaru Dealers. Wilkins Subaru 6913 Ritchie Hwy #2, Glen Burnie, MD 21061 410-689-8066 Fax: 410-689-8008 subparts@wilkinsautomotive.com www.wilkinssubaru.com
Fitzgerald Lakeforest Subaru 905 North Frederick Ave., Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
November 2017
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ADVERTISERS’ INDEX
Accudraft . . . . . . . . . . . . . . . . . . . . . .4
Koons Ford . . . . . . . . . . . . . . . . . . . . .54
American Honda Motor Co. . . . . . . . .IBC
Mazda Group . . . . . . . . . . . . . . . . . . .17
AkzoNobel . . . . . . . . . . . . . . . . . . . . .28-29 Audi Group . . . . . . . . . . . . . . . . . . . . .42
Axalta Coating Systems . . . . . . . . . . .IFC
BMW Group . . . . . . . . . . . . . . . . . . . .20-21 BMW of Fairfax . . . . . . . . . . . . . . . . . .3
CAPA . . . . . . . . . . . . . . . . . . . . . . . . .49 Chesapeake Automotive Equipment .19
Crashmax Equipment . . . . . . . . . . . .43 Dominion Sure Seal . . . . . . . . . . . . . .34
Empire Auto Parts . . . . . . . . . . . . . . .19
Estify Transfer . . . . . . . . . . . . . . . . . . .43 Fairfax Hyundai . . . . . . . . . . . . . . . . .54
Ford Group . . . . . . . . . . . . . . . . . . . . .25 Future Cure . . . . . . . . . . . . . . . . . . . .36 GM Parts Group . . . . . . . . . . . . . . . . .50 Honda Group . . . . . . . . . . . . . . . . . . .8
Hyundai Group . . . . . . . . . . . . . . . . . .38
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November 2017
Malloy Hyundai . . . . . . . . . . . . . . . . . .7
MINI Group . . . . . . . . . . . . . . . . . . . . .47 Mitsubishi Group . . . . . . . . . . . . . . . .53
Mopar Group . . . . . . . . . . . . . . . . . . .37 Nissan Group . . . . . . . . . . . . . . . . . . .37 Nucar . . . . . . . . . . . . . . . . . . . . . . . . .9
O’Donnell Honda . . . . . . . . . . . . . . . .46 Packer Norris Parts . . . . . . . . . . . . . .15
Porsche Group . . . . . . . . . . . . . . . . . .39
PPG . . . . . . . . . . . . . . . . . . . . . . . . . .OBC Reliable Automotive Equipment . . . . .11
Safety Regulations . . . . . . . . . . . . . . .35
SEMA Show . . . . . . . . . . . . . . . . . . . .23 Subaru Group . . . . . . . . . . . . . . . . . . .53 Toyota Group . . . . . . . . . . . . . . . . . . .48
VW Group . . . . . . . . . . . . . . . . . . . . . .16 Wheel Collision Center . . . . . . . . . . . .46
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