Hammer & Dolly June 2014

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2014 WMABA Golf Outing Registration - page 21

www.wmaba.com

June 2014 Volume 8, No. 6 $5.95

www.grecopublishing.com

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June 2014

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36 COVER STORY THE NEW F-150 IS COMING: IS THE INDUSTRY READY?

CONTENTS

June 2014

Repairers from across the nation respond to Ford's move to aluminum.

BY JOEL GAUSTEN

21 2014 WMABA GOLF OUTING REGISTRATION

WMABA's biggest event of the year is coming soon! Learn how you can sign up early and guarantee your spot.

LOCAL NEWS 14 MD & VA SKILLSUSA CELEBRATES 16

DEPARTMENTS Calendar of Events

EXCEPTIONAL AUTO STUDENTS BY JOEL GAUSTEN

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MIKE ANDERSON RETURNS TO WMABA AREA FOR “ENCYCLOPEDIA OF ESTIMATING PRACTICES”

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Editor’s Message JOEL GAUSTEN

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President’s Message DON BEAVER

LEGAL PERSPECTIVE 18 IS YOUR BUSINESS UP TO SPEED

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WITH WAGE LAWS?

Important payroll practices and requirements that employers must follow. BY JAMES A. CLEAVER

WMABA FEATURE 28 LIFE UNDER INSURER PARTS MANDATES:

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A HAMMER & DOLLY SPECIAL REPORT

PartsTrader goes national – and so do the industry's concerns.

TECHNICAL FEATURE 34 WHAT THE FUTURE HOLDS FOR YOU

Predictions and reality checks from our resident tech experts.

BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE

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What’s WMABA Up To?

Technician of the Month STEVER KARI Headliners

Executive Director’s Message JORDAN HENDLER Advertisers Index

COVER: ©thinkstockphoto.com/Nastco THIS PAGE, CLOCKWISE FROM TOP: ©thinkstockphoto.com/Nastco ©thinkstockphoto.com/hxdyl ©thinkstockphoto.com/Rasica ©thinkstockphoto.com/filmfoto ©thinkstockphoto.com/Darko Novakovic

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CALENDAR OF

EVENTS

June 26, 2014

Industry training opportunities and don't-miss events.

Annual WMABA Golf Outing Virginia Oaks Golf Club, 7950 Virginia Oaks Dr., Gainesville, VA 1pm Shotgun Start For more information, please visit www.w maba.com

July 28, 2014

SCRS Open Meeting Detroit Marriott at the Renaissance Cente r, Detroit, MI For more information, visit www.scrs.c om

July 29, 2014

Collision Industry Conference (CIC) Detroit Marriott at the Renaissance Cente r, Detroit, MI For more information, visit www.ciclin k.com

CLASS LISTINGS

June 2, 2014

VEHICLE TECHNOLOGY & TRENDS 2014 First Team Toyota, Chesapeake, VA

June 3, 2014

PLASTIC & COMPOSITE REPAIR Coxton’s Gold Team Collision Center, Yorktown, VA

June 4, 2014

REFINISHING EQUIPMENT & VOC REGULATIONS First Team Toyota, Chesapeake, VA

June 9, 2014

FULL-FRAME PARTIAL REPLACEMENT First Team Toyota, Chesapeake, VA

June 10, 2014

SUSPENSION SYSTEMS Coxton’s Gold Team Collision Center, Yorktown, VA FULL-FRAME PARTIAL REPLACEMENT State Farm Silver Spring, Silver Spring, MD

June 11, 2014

SURFACE PREPARATION & MASKING First Team Toyota, Chesapeake, VA

June 12, 2014

SQUEEZE-TYPE RESISTANCE SPOT WELDING Coxton’s Gold Team Collision Center, Yorktown, VA

June 23, 2014

SECTIONING OF STEEL UNITIZED STRUCTURES First Team Toyota, Chesapeake, VA

June 24, 2014

AUTOMOTIVE FOAMS Hampton Inn Salisbury, Salisbury, MD REPLACING EXTERIOR ALUMINUM PANELS Keystone Linthicum, Linthicum, MD

June 26, 2014

SQUEEZE-TYPE RESISTANCE SPOT WELDING King Volkswagen, Gaithersburg, MD REPLACEMENT OF STEEL UNITIZED STRUCTURES Kunkel’s, Baltimore, MD

June 30, 2014

SQUEEZE-TYPE RESISTANCE SPOT WELDING First Team Toyota, Chesapeake, VA

July 7, 2014

FULL-FRAME PARTIAL REPLACEMENT Coxton’s Gold Team Collision Center, Yorktown, VA COLLISION REPAIR FOR TOYOTA, LEXUS & SCION VEHICLES Frederick Co. Career & Tech, Frederick, MD

STEERING & SUSPENSION DAMAGE ANALYSIS First Team Toyota, Chesapeake, VA

REPLACEMENT OF STEEL UNITIZED STRUCTURES First Team Toyota, Chesapeake, VA

STRUCTURAL STRAIGHTENING STEEL State Farm Silver Spring, Silver Spring, MD WELDED & ADHESIVELY BONDED PANEL REPLACEMENT Coxton’s Gold Team Collision Center, Yorktown, VA

June 16, 2014 June 17, 2014

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS Coxton’s Gold Team Collision Center, Yorktown, VA WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Canby Motors Collision Repair, Aberdeen, MD

June 18, 2014

DETAILING First Team Toyota, Chesapeake, VA

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June 19, 2014

June 2014

July 8, 2014

July 10, 2014

REPLACING EXTERIOR ALUMINUM PANELS Coxton’s Gold Team Collision Center, Yorktown, VA VEHICLE TECHNOLOGY & TRENDS 2014 Automotive Collision Technologies, Randallstown, MD

July 14, 2014

WELDED & ADHESIVELY BONDED PANEL REPLACEMENT First Team Toyota, Chesapeake, VA

July 15, 2014

MEASURING Canby Motors Collision Repair, Aberdeen, MD

July 17, 2014

VEHICLE TECHNOLOGY & TRENDS 2014 Kunkel’s, Baltimore, MD STEEL UNITIZED STRUCTURES, TECHNOLOGIES & REPAIR Coxton’s Gold Team Collision Center, Yorktown, VA

July 21, 2014

COLOR THEORY, APPLICATION, TINTING & BLENDING First Team Toyota, Chesapeake, VA

July 22, 2014

SUSPENSION SYSTEMS Keystone Linthicum, Linthicum, MD REPLACING EXTERIOR ALUMINUM PANELS Criswell Collision Center, Annapolis, MD REPLACEMENT OF STEEL UNITIZED STRUCTURES Coxton’s Gold Team Collision Center, Yorktown, VA

July 24, 2014

COSMETIC STRAIGHTENING ALUMINUM Coxton’s Gold Team Collision Center, Yorktown, VA AUTOMOTIVE FOAMS King Volkswagen, Gaithersburg, MD ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE ANALYSIS Criswell Collision Center, Annapolis, MD

July 28, 2014

COSMETIC STRAIGHTENING ALUMINUM First Team Toyota, Chesapeake, VA

July 31, 2014

ADHESIVE BONDING Coxton’s Gold Team Collision Center, Yorktown, VA

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

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Joel Gausten

EDITOR’S

(973) 600-9288 tgpjoel@verizon.net

MESSAGE THE MORE THINGS CHANGE...

As I approach my 14th anniversary as an automotive industry writer, I’ve been spending a lot of time lately looking back at my years covering this field. It’s hard for me to believe it at times, but I’ve literally written thousands of articles about the regional and national collision repair community. Not too long ago, I dug out some magazines that TGP, Inc. produced for another auto body association back in 2000 – the year I started out in this business. Flipping through the pages, I saw two very big topics

pop up again and again: The need to build a future workforce, and the growing dominance of the insurance industry. Fast-forward nearly 15 years, and we see vehicles like the 2015 Ford F-150 not only prompting increased training for existing repairers, but adding to the demands facing new technicians as they consider a career in this trade. Back in 2000, repairers griped to me about short-pays from insurers; today, shops are being forced to contemplate their futures as insurers take over virtually every aspect of the repair and parts-ordering processes.

Although some negative aspects of the industry have surely intensified over the years, one very positive thing has remained constant: The commitment of state collision repair associations to strengthen the business lives of their members. In every single issue of the hundreds of magazines TGP, Inc. has printed since I joined the company, there is at least one strong reminder that this industry moves forward thanks to dedicated (and mostly volunteer) shop owners, vendors and other representatives willing to put in the time, effort and determination needed to make a difference.

While other perceived “friends” in the industry have shown that they don’t always have the best interests of repairers in mind, WMABA has never faltered in representing each and every person who pays dues. In these ever-changing times, it’s not uncommon to feel let down by an insurance partner, or question if a vehicle manufacturer’s decisions could result in increased pressures on your crew. But through it all, remember that WMABA has never strayed an inch from its goal to build a better, more profitable industry for its members.

Sure, this industry can often feel like steering an oil tanker when technology demands that you respond like a speedboat. Sure, it sometimes feels like the same problems come up again and again. But anything that has true value and meaning will always take time to accomplish. WMABA has scores of people devoted to doing whatever is necessary to make the industry better – and that’s half the battle right there. Remember that you are never alone; you have friends in this industry willing and available to help. WMABA is just a phone call away if you need them – and that’s one thing that won’t change. H&D

©thinkstockphoto.com/huasui

2014 WMABA OFFICERS PRESIDENT

VICE PRESIDENT TREASURER SECRETARY

IMMEDIATE PAST PRESIDENT

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

BOARD OF DIRECTORS

Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Mark Boudreau (crashdaddy@aol.com) 703-671-2402

ADMINISTRATION

Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128

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

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STAFF

PUBLISHER MANAGING EDITOR EDITOR ART DIRECTOR OFFICE MANAGER ADVERTISING DIRECTOR

Thomas Greco tgp22@verizon.net

Alicia Figurelli tgp2@verizon.net

Joel Gausten tgpjoel@verizon.net

Lea Velocci tgp3@verizon.net

Sofia Cabrera tgp4@verizon.net

Norman Morano tgp5@verizon.net 800-991-1995 Fax 732-280-6601

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 © 2014 Thomas Greco Publishing, Inc.

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PRESIDENT’S

MESSAGE

Don Beaver

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

computer-literate and accomplished – not to mention certified – welders. They will need to be tech savvy and willing to learn and educate themselves.

As most of us know, Ford will be releasing their aluminum-intensive F-150 in the fall. Even terminology is changing with these vehicles: Ford doesn’t even want the F-150 being referred to as being an “aluminum truck;” it is made from a “military-grade aluminum alloy.” Wow, that’s a mouthful! The technicians, shop owners and managers need to prepare for what is being referred to as a “technology tsunami” that is about to hit. In many cases, it already has hit.

Modern welders will need to be capable of GMA/MIG welding, MIG brazing and aluminum welding. Due to very specific repair requirements, even aluminum welding spool guns could be outdated. Shops may even end up with three, four or five different welders to meet carmakers’ guidelines or to be certified to work on a particular vehicle. Are you going to need a dedicated “The aluminum is coming! The alubench system? You certainly will need a dedicated aluminum repair area that is clean and clear of minum is coming!” We’re having a call to the possible cross contamination associated with steel repairs. You will need special abrasives, arms! We may not have to hang the lanterns, but we definitely need to turn the dedicated hand tools and special equipment for riveting or rivet bonding. Get ready and prepare porch light on. Aluminum is not “coming;” your shop and your technicians for what is here and on the horizon, or you may find yourself in the it’s been here for a while. Aluminum-inten- same boat as that proverbial blacksmith. Yes, they’re around, but certainly a dying breed. H&D sive vehicles are increasingly becoming mainstream. With federally mandated CAFE standards, vehicles need to be lighter and more fuel-efficient while maintaining safety. With today’s technology, people are looking for all the bells and whistles possible – and those things bring additional weight. To provide the motoring public with these gadgets (as well as meet the federal standards), automakers have turned to aluminum. Shops need to educate and equip technicians to repair these vehicles. With that comes a cost, which can be significant. The need for new welders alone can be cost-prohibitive, but if an investment is not made, shops may find themselves going the way of the blacksmith.

As with the transition from horseand-buggy to the automobile, there is the need for a new breed of technician. That technician is going to need to be not only a jack of all trades, but a master of all trades. They are going to need to be

©thinkstockphoto.com/blueskies9

ALUMINUM IS NOT COMING

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LOCAL

NEWS MD & VA SkillsUSA

CELEBRATES EXCEPTIONAL AUTO STUDENTS

Maryland SkillsUSA at work

Information and updates from WMABA and beyond.

SkillsUSA MD Collision competitors (L-R): Seth Darney; Philip Jett; Marquise Watts; Balai Carter; Austin Edleblute; Jacqueline Martinez; Ronald Miller; Ryan Heiland; Matthew Sears.

SkillsUSA MD Collision judges (L-R): Krishna Deoraj; Bill Tomlinson; Jeff Poole; Amanda Bolton; Mike Pazdersky; Buzz McAllister; Tony Brooks; Jamie Shewbridge; Dave Hardester; Beth Meckel; Howard Beaver; Kim Parson; Joe Rinehart; Jake Hollandsworth, Tim Pryor.

SkillsUSA MD Refinishing competitors (L-R): Nathan Turner; Landon Hollinger; Austin Main; Nick Shaderick; David Webber; Antonio Johnson; Andrew Leo Grant; Francis Merkel; Adam Weber; William Shockley.

SkillsUSA MD Refinishing judges (L-R): Matt Pratt; Jared Poring; John Hamrick; Tommy Detrich; Ronnie Day; Jared Hintze; Chuck lohrfink.

he Maryland SkillsUSA Collision Repair

School for STI), Third Place - Jacqueline

tions were held April 4 and 5 at the

Center); Automotive Refinishing Technol-

and Automotive Refinishing Competi-

T

Center of Applied Technology North in Severn.

Some of Virginia's best and brightest 14

Congratulations to the following winners:

Collision Repair Technology – First Place:

Matthew Sears (Center of Applied Tech North), Second Place – Balai Carter (North Point High

Martinez (Dorchester Career & Technology

ogy – First Place: Francis Meckle (Harford Tech High School), Second Place: Nick

Shadrick (Center of Applied Technology

South), Third Place: Austin Main (Frederick County Career & Tech Center).

continued on page 31

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Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138

Lindsay Volkswagen of Dulles 22455 Cedar Green Rd. Sterling, VA 20166 703-880-8160 Fax: 703-880-8219

e-mail: parts@alexandriavw.com

www.lindsayvolkswagen.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 e-mail: vwwholesale@ourisman.co

Cook Volkswagen 2110 Bel Air Rd. Fallston, MD 21047 866-560-3957 410-877-1500 Fax: 410-877-8557

Checkered Flag Volkswagen 3025 Virginia Beach Blvd Virginia Beach, VA 23452 Parts Direct: 757-687-3465 757-490-1111 Fax: 757-687-3514 www.checkeredflag.com

Russel Volkswagen 6624 Baltimore National Pike Baltimore, MD 21228 PH:410-788-1700 Fax:410-818-2049 e-mail: rpedrick@russelautomotive.com www.russelvw.com

Brown’s Volkswagen 10501 Midlothian Turnpike Richmond, VA 23235 Parts Direct: 804-379-6610 Parts Fax: 804-897-1654 e-mail: jhatton@brownscar.com www.brownscar.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 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanvwofrockville.com

Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841

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

e-mail: parts@fitzmall.com www.fitzparts.com

King Volkswagen 979 North Frederick Ave. Gaithersburg, MD 20879 Parts Direct: 240-403-2300 Fax:240-403-2398 e-mail: parts@vwking.com www.vwking.com

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Information and updates from WMABA and beyond.

LOCAL

NEWS MIKE ANDERSON RETURNS TO WMABA AREA FOR “ENCYCLOPEDIA OF ESTIMATING PRACTICES” On May 1, Maryland repairers spent a rousing, educational day with former VA shop owner and association Board member Mike Anderson (CollisionAdvice) at the WMABA-hosted “Encyclopedia of Estimating Practices” workshop. Held at the LKQ Training Center in Linthicum, MD, Anderson spent the day informing and motivating attendees, all while delivering valuable - and, in some cases, surprising - industry updates.

Launching his eye-opening presentation with “The Rules,” he warned attendees to not mistake his passion for arrogance. Shortly thereafter, they figured out why: He asked for an audience “Amen!” every time they agreed with something he said, like an energetic preacher directing a crowd.

Covering everything from industry definitions to estimating, Anderson offered something for everyone. His approach provided attendees with tools and methods for learning, rather than quick fixes that might fizzle or change over time. Instead, he focused on the long-term solution of student-initiated learning and adaptation.

Pleased by the strong turnout of area shops, Anderson tells Hammer & Dolly that he hopes the day-long presentation offered true value to the WMABA community.

“My goal was for everybody to understand that it’s important for us to still focus on

Mike Anderson's May 1 presentation included an outdoor demonstration of the ASTech Tool.

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cycle time – and I understand why people focus on severity – but safety needs to be more important than all of that,” he says.

“Whether you’re a DRP or non-DRP, when that customer chooses you to fix the [vehicle], they’re saying, ‘I’m choosing you to fix my car because I trust you to look out for my best interest and do things the way they’re supposed to be done.’ Sometimes, shops take that too lightly; they don’t take it as seriously as they should.”

Additionally, he stresses that a proper estimate or blueprint has a considerable impact on cycle time and CSI. “Speed is the name of the game,” he says. “It’s not just about writing an accurate blueprint to fix the car right...Even if you’re not a DRP, you have to get [better] at turning cars quicker just because there is less profit on a job and you have to turn more cars just to get to the break-even point quicker. We really tried to focus [in the class] on just how the estimate is really the basis for getting the right part the first time and communicating properly with a customer.”

Looking back on his most recent visit with his old friends in WMABA, Anderson is especially impressed by the audience’s willingness to embrace the ideas and information he presented.

“A lot of people aren’t aware of what it takes to fix a car properly,” he offers. “I don’t mean that disrespectfully; it’s just that the industry is changing so fast that it takes a lot to keep up on things today. You really have to spend time on training. There are times when I do classes where you have a lot of naysayers [who say], ‘This will never work.’ But I didn’t sense any of that negativity; people seemed to be like, ‘Yeah, I got it. I understand it and I can do it.’”

Mike Anderson

If you didn’t make the meeting, there are several websites and products Anderson wants you to know about: www.DEGweb.org – The Database Enhancement Gateway is the FREE repairers’ tool for asking estimating database questions about the P-Pages, missing part numbers and missing or inaccurate labor times. This underutilized tool is a big reference point for all things estimating.

www.collisionadvice.com – Anderson’s website has all the forms, links and tools that he covers in all of his seminars, free to download.

So, what are you waiting for?!

www.estimatescrubber.com – Are you missing labor operations? How would you know?

This FREE website will go over your entire estimate and point out operations that you have not included. Here’s another free tool in getting a more accurate estimate.

www.partsvoice.com – This FREE website is great for looking up OEM schematics for parts ordering. Missing brackets, hardware and additional parts are common; this is a way to get your estimate more accurate from the beginning.

www.estify.com – (Fee-based, but a free trial is available!) Estify exists to make collision shops more efficient. They offer services that ultimately save you time and money.

Anderson also devoted time to discussing the ASTech Tool, a product that acts as an online factory scan tool for repairers to check the vehicle prior to repair and just before delivery.

More information on Mike Anderson is available at www.CollisionAdvice.com.

H&D

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LEGAL

PERSPECTIVE

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

BY JAMES A. CLEAVER, Senior Partner, The Law Offices of Alexander & Cleaver

For many businesses, payroll and related expenditures comprise a large portion of operational expenses. This month’s article will focus on some important recent updates to minimum wage requirements in the WMABA area, as well as several particular wage laws business owners should be aware of.

Since the President has called upon states to raise their minimum wage laws, a number of state and local governments have implemented a tiered increase over the course of the next few years. Specifically, the District of Columbia and Montgomery and Prince George’s Counties in Maryland will increase their minimum wage to $11.50 by 2017. Maryland will raise its minimum wage statewide to $10.10 in 2018. At the national level, President Obama has proposed an increase of the federal minimum wage to $10.10; that law has not made it out of Congress yet.

Virginia is one of 31 states whose minimum wage is $7.25 an hour, which has been the federally mandated amount since 2009. The counties in Virginia have failed to take separate action from the State on the minimum wage issue, and therefore must simply comply with the federal wage level. Additionally, if the federal minimum wage level were to increase, so too, would the Virginia minimum wage amount.

Maryland and Virginia both have specific laws that set forth when and how often employees must be paid, general guidelines for making wage deductions, what “wages” are and how employees may enforce their rights if wages are illegally withheld. As some of these guidelines vary from state to state, it is critical that employers are familiar with their particular area’s regulations. Violation of these laws could lead to hefty fines for a business, not to mention civil or even criminal penalties.

Maryland’s Payment and Collection Law and Title 40.1-29 of the Virginia Labor and Employment code both require employers to set regular pay periods. Excluding executive employees, an employee must be paid at least once every two weeks or twice a month. (In Virginia, students enrolled in work-study programs or employees whose wages total more than 150 percent of the average weekly wage as established by the Commonwealth may be paid once monthly if the employer so chooses.) Further, when an employee is hired, the employer must provide notice of the pay period as well as the employee’s rate of pay and leave benefits. If an employer decides to change the pay period, employees must be given notice at least one pay period in advance. Additionally, when a normal payday occurs on a non-workday, payroll must be made on the preceding workday and not the following workday.

Employees are entitled to be paid their wages during the pay periods that are set by their employer. The Payment and Collection Law

defines wages broadly to mean “all compensation that is due to an employee for employment,” and specifically includes bonuses, commissions, fringe benefits, overtime wages and any other payment promised for services. The definition of “wages” encompasses more than just an employee’s salary or hourly pay rate. It is important that employers know what portions of their compensation package are “wages” subject to the Payment and Collection Law. When an employee leaves employment - whether voluntarily or by termination - the Payment and Collection Law and Title 40 both require the employer to pay that employee all wages due for work that he or she performed before termination. Any earned wages must be paid no later than when the employee would have been paid if the employment had not been terminated.

An employee’s remedies for illegally withheld wages can have dire consequences to the employer. An employer in Maryland who withholds wages not as a result of a bona fide dispute can be subject to damages totaling three times the amount of wages withheld, plus attorney’s fees.

Virginia employers are also prohibited from withholding any part of wages or salary (except for payroll, wage or withholding taxes or in accordance with law) without the written consent of an employee. Employees in Virginia can enforce compliance with Title 40 through the Commissioner to collect unlawfully held wages; upon entry of a judgment against the employer, the Commissioner or the court involved may assess one-third of attorney’s fees as well.

Many additional requirements exist at the Federal level through the Department of Labor - including the Family Medical Leave Act and other specified parameters pertaining to medical or military leave - concerning length of payment and length of time employers must hold the position.

This is all on top of the requirements within salaried employees for minimum wage compliance. This is a commonly overlooked area in the collision repair industry, the consequences of which can be staggering.

If you have any questions about wages or the statutes discussed above, please consult a professional to discuss your rights and options as an employer. H&D

Jim Cleaver is the senior partner of the Alexander & Cleaver. Jim co-founded the firm in 1984 with Gary R. Alexander. He works primarily in the field of civil litigation, heading up the firm’s personal injury practice. In that role, Jim is the firm’s primary negotiator and litigator in personal injury cases, using his vast experience and knowledge acquired over parts of the past five decades to achieve results for clients. It is no surprise to colleagues and clients that Jim has been designated a Super Lawyer in personal injury cases, was named one of Maryland’s top trial lawyers and was selected by the prestigious Million Dollar Advocacy Forum. Jim can be contacted at (800) 292-LAWS.

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©thinkstockphoto.com/filmfoto

IS YOUR BUSINESS UP TO SPEED WITH WAGE LAWS?

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2014 WMaBa golf outing Proudly Sponsored by

June 26, 2014 1:00 PM Shotgun Start

Šthinkstockphoto.com/NeilBradfield

Virginia oaks golf Club 7950 Virginia oaks Drive, gainesville, Va 20155 www.virginiaoaksgc.com

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For information about sponsorship or participation, visit www.wmaba.com or call (804) 789-9649.

June 2014

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2014 WMaBa golf outing

June 26, 2014 • 1:00 PM Shotgun Start

Virginia oaks golf Club 7950 Virginia oaks Dr. gainesville, Va 20155 www.virginiaoaksgc.com

For information about sponsorship or participation, visit www.wmaba.com

2014 annual golf outing

entrY forM

NO ENTRIES WILL BE ACCEPTED AFTER THIS DATE!!

entries must be received by June 14.

name: __________________________________________ Company: _______________________________________

TEAM AVAILABILITY

*Four-person teams may be entered TEAM FEE: $625 ($156.25 per player) Please list the players: name: _____________________________________________ avg. 18-hole Score: ___ handicap: ___ name: _____________________________________________ avg. 18-hole Score: ___ handicap: ___ name: _____________________________________________ avg. 18-hole Score: ___ handicap: ___ *Person responsible for the team must contact and inform the other players and collect their portion of the fee from them.

address: _____________________________________________________________________________________ City: ___________________________________________ State: ___________ Zip: ________________________ Phone: _______________________________________ email: _________________________________________

TO PAY BY CREDIT CARD number: _______________________________________ type:

Visa

MasterCard

american express

expires: _____ /_____ Security Code: _______________

avg. 18-hole Score: ____ handicap: ____

TOURNAMENT FEE (check one) $175 Individual Player $625 Team Entry (Save $75 on entry)

Signature: _____________________________________

Send entry to: WMABA PO Box 3157, Mechanicsville, VA 23116 or Fax to: (804) 335-1296

QUESTIONS? Contact Jordan Hendler at (804) 789-9649 / jordanhendler@wmaba.com June 2014

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FIND MORE ASSOCIATION UPDATES @

www.wmaba.com

WHAT’S UP TO?

BEAT THE HEAT WITH WMABA

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June 2014

So how can you help? One way to contribute to our success as an association is to get to know your legislators in the intervening time between sessions. WMABA members and non-members alike find these folks to be personable, relatable and, above all, interested in what you do and how you service the constituents of their district. You are the best advocate for the repair industry to these legislators because you are in their hometown. Once they go back into session, they have more interaction with the lobbying “suits” and need to keep a strong connection to those at home.

Individual shops make all the difference at voting time! Invite legislators to your shop and give them a tour while explaining some of the issues that you face. It could be any topic from human resources, government oversight, insurer relationship issues or anything else that is keeping you from running a more efficient and profitable business (and is keeping you up at night). It also gives them a face to associate to our industry when they’re kneedeep in the muck of lawmaking.

Summers may be a break for the kids, but not for WMABA. If there’s anything you need in the heat of the season, let us know. We’re happy to help. Give us your ideas, thoughts and assistance, and we’ll give you our services. H&D

©thinkstockphoto.com1DoroO

It’s getting hot again; that’s no different from last year or the years, decades or millennia before it. You can already hear the industry collectively sigh after firing up the fans and swamp coolers. This time of year is usually a slow one for associations (or so we hear), but that’s not usually what happens for WMABA. Something that will surely erase your weary outlook on the summer heat is becoming part of WMABA, and knowing you belong to a greater force amidst the “heating up” of all the issues our industry faces. It’s like giving yourself a high-five for scoring at least once. For some members, just knowing that someone is out there working on their behalf makes them smile.

This is also the time of year that we shamelessly plug our annual Golf Outing on June 26 (see page 20), which is our only fundraiser for local education and the association’s general operating funds outside of the revenue generated by membership dues. If you stink at golf, then you’ll fit right in! All our players are people who have a “real” job and join in the fun regardless of ability. This event has become synonymous with community for the local industry. Send in your entry – mail, email, or online – today. Do it right now, before you get distracted!

Aside from ongoing education and member meetings, the summer months are when we at WMABA plan our fall events and legislative seasons. It takes a lot to keep our meetings fresh and relevant. It is also a mountainous task to go up against the biggest forces in the country with legislative efforts at the capital(s). They are draining on all the resources we have.

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aS a ColliSion rePair SPeCialiSt, You MuSt alWaYS foC hoWeVer, inSuranCe eStiMateS are often foCuSeD on BMW centers stock original equipment Parts that never sacrifice quality or s

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 www.mybmwannapolis.com

BMW of fairfax 2805 Old Lee Highway Fairfax, VA 22031 800-879-2269 Fax: 703-641-8562 www.bmwoffairfax.com

BMW of alexandria 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 www.bmwofalexandria.com

Passport BMW 5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 www.passportbmw.com

apple BMW  of York 1370 Roosevelt Ave. York, PA 17404 800-839-1755 Fax: 717-843-2948 www.applebmwofyork.com

BMW of Sterling 21826 Pacific Blvd.

Sterling, VA 20166 888-954-8222 Fax: 571-434-7727 www.bmwofsterling.com

BMW of Silver Spring 3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Fax: 301-890-3748 www.bmwofsilverspring.com

northwest BMW 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 www.northwestbmw.com

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foCuS on SafetY, QualitY anD CoSt. on JuSt CoSt. r safety for cost.

·

Every detail is exactly matched to the vehicle’s safety systems for optimum occupant protection.

·

Original BMW Panels and Components are built from premium materials using ultra-precise processes.

·

To maximize the safety of all passengers, replacement panels undergo strict and extensive quality control tests.

·

To ensure optimal paint adhesion, electrophoretically primer coats are applied during the manufacturing process.

BMW of Catonsville 6700 Baltimore National Pike Baltimore,MD 21228 800-828-6529 410-744-2000 Fax: 410-818-2600 www.bmwofcatonsville.com

BMW of Bel air 1705 Conowingo Road (US 1 in Hickory) Bel Air, MD 21014 443.640.1230 Fax: 443.640.1234 www.bmwbelair.com

richmond BMW 8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 www.richmondbmw.com

richmond BMW 12100 Midlothian Tpke Midlothian, VA 23113 Phone: 804-897-2211 Fax: 804-897-2202 www.richmondbmw.com

Checkered flag BMW 5225 Virginia Beach Blvd Virginia Beach, VA 23462 757-687-3494 Fax:757-687-3495 bmw.checkeredflag.com

BMW of towson 700 Kenilworth Drive Towson, MD 21204 410.296.7908 Fax: 410.296.4852 www.bmwtowson.com

Valley BMW 2824 Franklin Road SW Roanoke, VA 24014 PH: 540-342-3733 Fax: 540-345-9060 www.valleybmw.com

BMW of rockville 1396 Rockville Pike Rockville, MD 20852 301-984-8989 Fax: 301-984-1710 www.bmwrockville.com

June 2014

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

TECHNICIAN OF

THE MONTH STEVER KARI

At 26, Stever Kari has already seen more of this world than most people will experience in a lifetime. A native of Estonia in Eastern Europe, he came across an employment ad in his homeland seven years ago that completely changed the course of his life. A small body shop was looking for a general helper and was willing to train. With no prior experience, Kari was hired and immediately put to work cleaning tools, tending to the facility and getting a feel for the environment of a working collision repair business. After a year, he moved on to another shop and began honing his skills as a painter.

But with the economic climate in Estonia proving problematic for the auto body industry, Kari moved away from the field and into a construction job in Norway. While the new career path went well at first, his life would soon change in major ways.

“The job I was working on was finished, and I had a threemonth delay before we’d start the next one,” he recalls. “I thought to [travel] to the states and wait for the new job to start. It never started; the company went bankrupt, so I stayed over here and started looking for jobs in the collision industry again.”

With his mother already living here, Kari worked to establish himself in America. He joined the team at the BMW of Fairfax Collision Center eight months ago as a painter’s helper, after only three years in the industry. In his mind, there are some considerable differences between working in the auto body industry in Estonia and working on cars over here.

“It’s way better to work over here because painters do only paintwork and bodymen do only bodymen’s work,” he offers. “In Estonia, a painter does everything - bondo, seam sealer, priming, blocking, painting, buffing...everything from start to finish. Over here, it’s better because you’re more related with the paint shop, so you do more cars in a day and get more experience.”

Shop foreman Ron Martin is continually impressed by Kari’s strong work ethic and drive to succeed in this profession.

“Stever’s just a detail-oriented guy; he will do everything he can

HEADLINERS The latest news and notes.

AFTERMARKET COMPANY COMMENTS ON ALUMINUM ALLOY USAGE

In an April 28 announcement posted on its website (www.diamondstandardparts.com), the Diamond Standard Brand Parts Group commented on the growing use of aluminum by automobile manufacturers and explained the different types of alloys in use for bumper reinforcements and other panels.

“Diamond Standard Brand Parts Group has been working extensively with aluminum for bumper reinforcements and body panels since 2003,” stated Diamond Standard President Michael J. O’Neal. “The differences in these alloys are

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Estonian native Stever Kari has found great success in the USA.

to make the job perfect,” Martin says. “He has the right attitude, and he will definitely make it as a painter. I see a lot of helpers come through who will be a painter, but they’re not going to be that painter.

Stever is willing to put in the hours to make that happen.

“He is so much more than a painter’s helper,” he adds. “All the painters do is put color on cars; he does all the rest. He preps, he primes, he paints – he’s amazing.”

With nearly a decade of international repair experience under his belt, Kari has some great words of advice for younger painters looking to make their own mark in the trade.

“Listen to what others who have done this work longer than you have to say,” he says. “There’s a reason why there are guidelines and sheets [on] how to do the work properly. A small, single mistake can ruin everything. It’s important to do things how they’re suggested by the manufacturer.”

After finding success in the auto industry in two countries, Kari is enjoying something that many people strive their whole lives to achieve – getting paid for something he truly loves.

“I like working on cars and enjoy what I do,” he says. “I try to give 100 percent of myself in everything I do on cars. Construction was just for the purposes of making money; here, I’m doing it as a hobby and getting paid.” H&D

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

quite dramatic and to my knowledge, we are the only aftermarket manufacturer of 7000-alloy reinforcements.”

According to the company, there are two series of aluminum alloys used in reinforcement bars currently: 6000 alloys with ultimate tensile strength of 45,000 pounds per square inch (PSI) and 7000 alloys with ultimate tensile strength of 83,000 PSI. It is important that collision repair facilities understand which alloy is used when sourcing replacement parts. Diamond Standard has 49 popular exclusive applications of the 7000 alloys currently available.

According to the announcement, “Diamond Standard Brand Parts Group tests steel and aluminum reinforcement bars at Diamond Standard’s ISO 17025approved test lab [DSTL] and then submits to MGA Research Corporation in Burlington, WI for comparative testing and then on to certification...Diamond Standard Brand Parts can easily be identified in any estimating system by a combination of Partslink Number, plus the suffixes DS [DSTL and MGA], DSN [DSTL, MGA and NSF], or DSC [DSTL, MGA and CAPA].” H&D

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The latest from WMABA members and supporters.

WMABA

FEATURE LIFE UNDER INSURER PARTS MANDATES:

A HAMMER & DOLLY SPECIAL REPORT

April 23, 2014 was an important – and, for many, a disheartening – day in the history of the American collision repair industry. fter more than two years of strong industry push back (including trips to the Legislature by several state associations), the US arm of the New Zealand company PartsTrader announced that its controversial parts procurement program was now available to shop owners in all 48 continental states and the District of Columbia regardless of these facilities’ Direct Repair Program affiliation. Additionally, the Illinoisbased entity trumpeted some very big numbers: More than 7,500 repairers and 8,500 suppliers are said to be active on the system,

©thinkstockphoto.com/Rasica

A

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with OEMs comprising more than 75 percent of the active suppliers. PartsTrader states that they have processed more than 750,000 quote requests, generating more than 1 million confirmed parts orders. According to a PartsTrader press release, “Repairers choose which OEM dealers they invite to quote. Repairers choose who to order from after considering quality, service, delivery time, part types, the reputation of the suppliers and price. Repairers choose when to order. [The need may be so urgent that there is not enough time to seek competitive

quotes.] All suppliers are given the same equal opportunity to compete for a repairer’s business. Insurers do not have access to a repairer’s buy prices, other than for recycled parts, as they do today.”

“Our core application is now very different from when we started over two years ago,” commented PartsTrader CEO Rob Cooper in a prepared statement. “Earlier this year, we introduced the industry’s first system for tracking two-way repairer and supplier performance feedback. For example, repairers now have the ability to rate suppliers based on service and quality of the parts delivered. This ensures that each party can make a fully informed business decision before placing or responding to an order. Most recently, we’ve enhanced vehicle mapping capabilities and improved integration with the estimating systems, and have many more exciting features on the near-term horizon.”

As of this writing, PartsTrader exists as a solely optional, free market product in two states, Massachusetts and Rhode Island, where State Farm currently does not operate a Direct Repair Program.

Despite PartsTrader’s attempt to push a positive image of its product in the national industry, reports continue to come in to Hammer & Dolly from repairers across the country that all is not well with the implementation of the system on a practical, real-world level.

More, it flies in the face of all the company boasts. One WMABA-area Select Service repairer who wished to remain anonymous tells us that the level of communication between his facility and State Farm since the mandated use of PartsTrader at his business has been woefully inadequate.

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“State Farm has really kept us in the dark,” he says. “We get most of our information regarding implementation dates, etc. from vendors.

We keep expecting a State Farm rep to stop by or call, but it never happens.”

Recently, the PartsTrader system saved a vehicle from being totaled at an area user’s shop by locating some lower-priced parts that the shop had been unable to locate on its own. But despite this positive experience, this facility has also seen the dark side of insurer-mandated parts procurement. For example, the shop tells Hammer & Dolly that PartsTrader located “a great price” on an OEM taillight from an OEM dealer they don’t regularly use, but when the part was ordered, the parts manager called and said that the dealer couldn’t sell it for that price. On another occasion, the shop got “an unbelievable deal” on a quarter panel from one of their regular OEM suppliers.

“This saved the vehicle from being a total loss,” the repairer recalls.

“But when we opened the box, we found that [the OEM dealer] had sold us an aftermarket part. But State Farm doesn’t want aftermarket parts, right?”

After attending some of State Farm's recent informational gatherings on the PartsTrader product, one Virginia-area parts manager is quick to express concern over what he saw and heard.

“In their opening statement, State Farm claims that, according to their survey, the relationship between the shop and the supplier is the most important issue from the shops’ perspective,” he explains. “After 40-plus years in the industry, this is a statement I can believe. The relationship is the most important issue on the minds of both the shop and parts supplier. While I believe this is a true statement of fact, it is not an admission of agreement on State Farm’s behalf. What I believe State Farm would like to see is that the relationship would outweigh the need to maintain a healthy margin. While large parts suppliers will be able to maintain the relationship, small- to medium-sized suppliers will not. Customer service will need to be curtailed even from the largest suppliers...

Fees charged for returns will have to be maintained or even increased based on return rate.”

The parts manager also questions State Farm's longstanding statement that they will never tell a body shop where to purchase their parts to be questionable.

“What they did not mention was that body shops are graded on cycle time, quality of work and cost of repair,” he says. “So if a shop wants to remain a State Farm Select [Service] repair shop, they have to mind their points. Now what do you think that means to a shop owner?

All parts purchases will be made through PartsTrader, and shops will have very little choice in where they purchase their parts.”

On the national front, the WMABA-affiliated Society of Collision Repair Specialists (SCRS) has been receiving considerable feedback from its members in various states regarding issues pertaining to PartsTrader.

As reported in last month’s Hammer & Dolly (“SCRS Responds to Issues Impacting Membership,” May 2014), SCRS is actively addressing concerns over the collection and use of data in the PartsTrader process, based on frequent inquiries coming in from members as the mandated rollout widens. As noted by SCRS Executive Director Aaron Schulenburg, certain PartsTrader users are not only seeing data from State Farm claims in the PartsTrader dashboard, but also data from other insurers. Depending on which estimating system the end-user is using, it is apparently common that five pieces of data on non-State Farm claims will be able to be extracted by PartsTrader: Year, make, model, the last four digits of the claim number and the insurance company’s name.

SCRS sent a request to each of the estimating system providers (CCC, AudaExplore and Mitchell) inquiring if their system provided

functionality that would allow end-users to modify settings to restrict any additional exchange of information above and beyond that required by State Farm as a condition of their program. According to a report on the IPs’ responses released by the association (and available online at http://scrs.com/data/uploads/2014-april-scrs-examines-repairerability-to-control-data-flow.pdf), “CCC ONE users have always been able to configure multiple EMS paths that can be used for different systems. But now repairers can gain more control over their data by defining insurance company-specific export paths that will allow them to export only EMS files for a specific insurance company’s estimate. For example, if a repairer is using a shop management system, they could define one path to export all EMS files to [which is most likely already configured]...If the same shop was part of a Direct Repair program that required the use of a third-party application when processing their claims, they could configure a second path just for that application. In this example, only the data for that insurance company’s estimates would be exported. Once the new path is created, the third-party application would also need to be configured to import EMS from that directory.”

When asked about end-user configuration to restrict access to non-required claims (currently anything not designated as State Farm), Mitchell responded that “functionality is set for a future build,” but did not provide a target date in which such capabilities were expected to be implemented.

According to the SCRS report, AudaExplore representatives stated that, “as a rule, [the system] has only enabled custom export to PartsTrader on the required State Farm profiles and, further, only exports data on an estimate-by-estimate basis from the damage page. Data relative to non-required estimate files would only be sent for the estimates the end-user electively sends to PartsTrader for quotes, and that data is sent using CIECA BMS protocol in the export process to protect the user’s data to the greatest extent possible. SCRS was informed that there is EMS interaction from the work list where data for claims not sent for quotes would be available to PartsTrader if sent by the user, and that AudaExplore does not have any other direct interaction with PartsTrader where this data would be sent to them...Some shops have voluntarily requested that PartsTrader be enabled for other profiles besides State Farm, and AudaExplore plans to implement that capability. The process would be the same, and AudaExplore would still restrict information sent to PartsTrader to the estimate data the user chooses to send for quotes from the damage page. This functionality would be the only way PartsTrader would have access to non-State Farm claim data, and this permission would only [be] enabled for shops who specifically request it, and only relative to estimates they select to export for quote.”

With the realities of insurer-mandated parts procurement just now sinking in for many repairers and supplies across the country, we will continue to field comments, questions and concerns from the automotive community for future news and features in this publication. This tale is far from finished. H&D

Executive Director’s Thoughts

My mind boggles with confusion over PartsTrader’s philosophy that they have created a product of “choice” for repairers. In a free marketplace, would repairers choose them? I think we all know the answer: No. I know that shops are eating a lot of bull to get along with their insurance partners, but this is the tip of a very large iceberg.

- Jordan Hendler

June 2014

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LOCAL NEWS continued from page 14 Place: Olivia Dunheimer (Marshall High

Daniel Dove (Edison Academy High School),

Tomlinson, Jeff Poole, Amanda Bolton, Mike

(College/Postsecondary) – First Place:

Vocational Center.

Jamie Shewbridge, Dave Hardester, Beth

Second Place: Nick Mucha (Marshall High

volved in making this year's Virginia SkillsUSA

Neck Technical Center); Automotive Service

Berglund Body Works, DeWALT, Delco,

Thank you to this year's MD SkillsUSA

judges: Collision - Krishna Deoraj, Bill

Pazdersky, Buzz McAllister, Tony Brooks,

School); Automotive Service Technology Ramon Smith (Tidewater Community College),

Meckel, Howard Beaver, Kim Parson, Joe

School), Third Place: Devin Pitts (Northern

Refinishing - Matt Pratt, Jared Poring, John

Technology (High School) – First Place:

Rinehart, Jake Hollandsworth and Tim Pryor; Hamrick, Tommy Detrich, Ronnie Day, Jared

Hintze and Chuck Lohrfink.

Adam Pullis (C. S. Monroe Technology Center

High School), Second Place: Michael Payne

Third Place: Corey L. Combs (Scott County

The many sponsors and companies in-

events a success included Acura, Audi,

Delcam, Duncan Audi, Snap-On Industries and WyoTech.

The First Place winners from each auto-

(C. D. Hylton High School), Third Place: Anton

related category will now go on to compete at

cepts, Allstate, ASE, Auto Solutions, Automo-

Center); Collision Repair Technology (Col-

Conference (NLSC), scheduled for June 23-27

BASF, Car-O-Liner, CATN, Cherner Automo-

Cota (Northern Neck Technical Center); and

Organizers express their gratitude to

these sponsors: 3M, Advanced Collision Con-

tive Collision Technologies (ACT), B&L Sales, tive, Chesapeake Automotive Equipment,

Criswell Auto Body, Chrysler Corporation LLC,

Collision Services, Darcars, Enterprise Rent-A-

Car, Evercoat, Fort Washington Autobody,

Klepach (Greene County Tech Educational

lege/Postsecondary) – First Place: Carlos

Collision Repair Technology (High School) –

the 50th annual National Leadership and Skills in Kansas City. For more information on

SkillsUSA, visit www.skillusa.org. H&D

First Place: Joseph Epperson (Pittsylvania

Career & Technology Center), Second Place:

GEICO, Gerber Collision and Glass, Heritage

Collision Center, Hummel & Associates Ltd.,

Hunter Engineering, I-CAR, LKQ/Keystone,

MATCO Tools, Mid-Atlantic Equipment,

MileOne Collision Center, Napa Auto Parts,

Norton, Nyquist Paints, O'Donnell Collision

Center, PPG, Rich Morton Auto Group, Roberts

Oxygen, Severn Auto Body, Snap-On Tools,

Subway Auto Body and Sullivan Auto Body.

This year's auto-related Virginia SkillsUSA

Competitions were held April 4 and 5 at the Roanoke Civic Center and Berglund Body

Works in Roanoke. Congratulations to the following winners: Automotive Refinishing

Technology (College/Postsecondary) – First Place: De'andre Wood (Northern Neck Techni-

cal Center), Second Place: Elisha McGee (Virginia Beach Technical & Career Education),

Automotive Refinishing Technology (High

School) – First Place: Lynn Jones (Pittsylvania Career & Technology Center), Second Place: Brian Thompson (Salem High School), Third

June 2014

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Nuts and bolts, tips and tricks from our resident industry experts.

TECHNICAL

FEATURE

BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE

WHAT THE FUTURE HOLDS FOR YOU

Wow. So far this year, we have heard of carbon-fiber-reinforced plastic (CFRP) vehicles (BMW i3) and a mass-produced aluminum truck (2015 Ford F-150). But what does the future hold for the collision repair industry?

This month’s article contains a recap of the known information and facts, some predictions and even a few myths we'd like to dispel.

NEW MATERIALS Fact: Modern vehicles are not only engineering wonders, but they are loaded with creature comforts and are rolling, electronically-controlled masterpieces. And this is just a taste of what is to come.

Prediction: In the next five to seven years, we will see newer, more advanced highstrength steels (ADHSS), CFRP with nanotechnology, semi-autonomous vehicles, equipment changes and advanced training requirements.

Myth: Today’s vehicles can be repaired both quickly and properly. FALSE! Today’s vehicles require skill, training and proper equipment to ensure that the repairer is adhering to proper procedures and protocols. On too many occasions, we see unrealistic repair times (commonly referred to as “cycle time”), generally based on rental day calculations without taking into consideration the actual skill level required to perform proper repairs.

Remember: Just because you’ve been doing it a certain way for a period of years does not mean it is right.

©thinkstockphoto.com/pigphoto

ALUMINUM Fact: Aluminum construction is moving into mainstream vehicles. Over the past few years, we have seen mass-produced vehicles with aluminum outer panels and closure panels. Infiniti and many other OEMs are offering their vehicles with aluminum door assemblies and hood panels. The Nissan Altima now has an aluminum hood, decklid and roof panel. Ford has been making headlines over the 2015 F-150. GM has also

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announced plans to offer a 1500 Series pickup by 2018 that will be aluminumintensive.

Prediction: Ford Mustang, Fusion and Expedition will be next to go aluminum. GM will roll out the 1500 Series pickup and SUV lines soon. After that, we predict a couple of Cadillac models. Chrysler may wait on the sidelines for a while, but look for the Ram to be the first to go with aluminum. Mercedes-Benz already offers the AMG SLS and the SL as aluminum-intensive; this year, the S Class went aluminum in the front structure. And we already know all Benz vehicles will be designed with aluminum front structures by 2020.

Myth: Aluminum repair is easy and no big deal. FALSE! Aluminum repair is not difficult if the technician has the proper training and lots of practice. Aluminum repair is very different from steel; surprisingly, most aluminum damage is not repairable. And we are just talking about outer panels, as structural aluminum components are not repairable and structural realignment is generally prohibited.

EQUIPMENT Fact: Equipment upgrades and changes are part of the industry, but in the past three years, many OEMs have been making requirements to specific equipment for repairs to their vehicles. Celette has been the leader for structural repair for many years as the most approved equipment for many of the European vehicles. But in recent years, they have been making fixtures for domestic and Asian models. Not too long ago, Doug Craig from Chrysler made a video on the importance of additional anchoring on some Chrysler and Jeep models. CarBench has been the approved equipment supplier for Ferrari and Lamborghini for many years and, in the past few years, has received approval from many of the European automakers.

Rounding out the top three is Car-O-Liner, with approval for most of the European models (except Mercedes-Benz USA). If your structural repair equipment was not

purchased in the past three to five years, you may not be able to repair most of today’s vehicles properly – or, for that matter, any of them.

Prediction: Shop closures are inevitable as the requirements and costs to repair the new advanced vehicles rise. We feel we will see about a 20-percent drop in registered repair facilities in the next decade, with some MSOs, DRPs and OEM-certified repair facilities surviving the costs of training and retooling. Training, certification (ISO, ASE) and an attitude to want to learn and change are, and will be, must-have traits to be successful. Our advice is to start preparing, investing and training now or be left sitting on the sidelines.

Myth: Here is something we hear all the time: “My frame equipment from 20 years ago is still good and my techs know what they are doing.” You are in denial. Many techs and damage assessors have a multitude of excuses for why they don't train and get educated to adapt to the new repair procedures. Repair facility owners need to hold people – including themselves – accountable.

HAND TOOLS AND CONSUMABLES Fact: Hand tools, cutting tools and other consumables will need to change as the materials used in vehicle construction become more advanced. There are about four different strengths of spot weld drill bits available for the different types of steels. Most will last 300 to 700 welds, provided the tech uses the proper speed (RPM) drill and lubricates the area. Bits used for aluminum will last even longer than 700 spot welds due to aluminum's softness. Conversely, boron alloyed drill bits will only last 90 to 125 spot welds, and those bits can range between $75 to $125 per bit. In some cases, you will need two to three bits depending on the amount of spot welds and/or drill holes you will need to drill on boron alloyed or hot stamped steel.

When removing damaged panels for replacement, the tech must be careful not to

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cause damage to the inner reinforcements or inner panel (steel and/or aluminum). Techs must use care to drill only the outer panel and then use a panel separator with a hammer. Air chisels are a thing of the past and should not even be in a modern repair facility. Dressing welds should be attempted with quarter-inch thick grinding stones and not cut-off wheels.

Twenty-four/36-grit is another antiquated product; after the grinding stone, the tech should continue to dress the area with 50-grit or a belt sander and progress to 80- and 100-grit and/or a Roloc Bristle. In some cases, a Dremel tool will be needed. Shockingly, most techs need a class on how to dress welded areas properly.

Prediction: Techs will need to invest in their hand tools, and shop owners will need to purchase newer consumables. Remember: Everyone is watching the quality of repairs. There are articles and videos all over the Internet on post-repair inspection, diminished value and lawsuits about poor repairs. The consumer is asking for this, and the people who are looking are often experts. If you don’t raise your quality, you will see more and more issues with the quality of repairs. This could directly affect you and your business.

New York State Professional Engineer who specializes in investigating vehicle and component failures.

Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net. The Lange Technical Services, Ltd. website is www.LangeTech.net.

Executive Director’s Thoughts

Larry and Jeff hit it on the head with this – or maybe hit you over the head. It’s here, folks.

Aluminum is not going to go away, no matter how deep you bury your sore head. Get over it and get with it, or get out. You have no right to fix these cars if you didn’t earn the education - and the privilege - to do so.

- Jordan Hendler

In general, if your equipment has not been purchased within the past five years, your techs have not been to some kind of training in five years or your techs have never been tested on welding and everything we mentioned above is foreign and unbelievable, then you may need assistance in deciding what you want to do for a living in the future.

We hope this article has helped the industry to better understand what the future holds.

Remember that today’s advanced construction and material vehicles will not let you repair them incorrectly. Improper repairs will break and fail if repaired incorrectly. Be proactive; protect yourself through education and training.

Feel free to contact us if you have any questions. 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 repairability and estimating issues. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860–3588 (cell), (718) 646–2733 (fax) or via email at info@ PnLEstimology.com. The P&L website is www.PnLEstimology.com.

Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY. Jeff is a Licensed

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Repairers react to the aluminum wave.

COVER

THE NEW F-150 IS COMING: IS THE INDUSTRY READY? The collision repair industry Is changing in fascinating and frustrating ways.

With the government putting ongoing pressure on vehicle manufacturers to reduce their miles per gallon, the need for lighterweight materials in vehicle composition continues to escalate. As even a brief glance at any industry trade news source in recent months will clearly show, Ford has been receiving a considerable amount of attention lately due to the introduction of their 2015 F-150 “military-grade aluminum alloy” vehicle. As discussed in last month’s issue, Ford has stated that the new F-150 has “an improved boxed frame with more high-strength steel than ever before…[and] highstrength, military-grade, aluminum alloy throughout the body, which improves dent and ding resistance while saving as much as 700 pounds, providing improved towing, payload and better fuel efficiency.” While the design and features of the 2015 F-150 are indeed impressive, its rapidly approaching street date has led many to take a critical look at not only the repair industry’s preparedness to tackle these vehicles, but shops’ ability to receive the compensation necessary to put the 2015 F-150 back on the road safely and professionally.

Words of Experience...and Caution When it comes to aluminum repair, Oklahoma City-based repair pro Gary Wano, Jr. (G.W. And Son Auto Body, Inc.) knows his stuff. A certified aluminum repairer since 2005, Wano is quick to share some of the ups and downs he experienced in reaching a status that many repairers are only just now considering.

“The first challenge was the equipment it was going to take to [repair aluminum],” he says. “When you have a repair facility that is basically repairing mild steel all the way up to high-strength steel, you still have a facility that is geared toward repairing steel alloy automobiles. By pulling the aluminum program into place, that means you have a whole new set of hand tools that are necessary. You have to have a dedicated room for the aluminum repairs to take place in that will eliminate cross-contamination of steel and aluminum. In the hand tools, welders and fume extractors, there’s

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just a large array of different equipment necessary. That was one part; the other part, of course, was overcoming the hurdle of training.”

Thankfully, Wano appears to be doing well with this investment.

These days, he is able to serve multiple lines in his aluminum-specific area of his shop.

“For myself and other repairers who did jump into this a little bit earlier, we still get hindered by specific tools that come up because of new technology and new design, but the large investment’s already been made,” he says. “The aluminum room [can be used] for all the aluminum products that are out there. If you get into multiple OEM programs, you’re able to split up that return on investment based on multiple lines and makes. That enables you to regain your investment a lot quicker.”

While Wano’s facility is poised to handle an influx of new F150s, he cautions that any shop entering the world of aluminum for the first time now could have a very steep mountain to climb.

“For us, [becoming F-150-recognized] wouldn’t be that much of an investment, but for the store that is coming into this for the first time, that investment is going to be kind of sizeable,” he says. “The training and equipment is at a level that will be surprising to most repairers who have not already experienced an OE program.”

What might also be surprising for some repairs is Ford’s position on pulling the structure of the vehicle. Despite concerns expressed by members of the industry that other aluminum-structured car manufacturers don’t allow pulling, Ford is currently allowing such practices on the body structure of the 2015 F-150.

At the April 9 Collision Industry Conference in Portland, OR, Texas-based repairer Dustin Womble (Roger Beasley Collision Center) noted that an aluminum-structured vehicle manufacturer his shop is currently certified to repair will not allow pulling on the car, noting a concern over breaking the bonding agent on the other side of the vehicle.

“Ford [has] a different position on that and they're willing to risk the fact that the bonding agent could be dislodged on the opposite side of the vehicle,” he said. “You are authorizing us to make a pull

©thinkstockphoto.com/Nastco

STORY

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on that body structure, is that correct?”

“We are allowing pulling on the body structure, yes,” replied Tom Green, Ford’s body and chassis commodity manager.

Despite Green’s assurances to the contrary, pulling aluminum is a truly foreign concept to repairers used to strictly adhering to OEM recommendations against such procedures when a Benz SLS, Audi, Porsche or Jaguar rolls into their shop.

“On almost every one of the cars, there's no pulling whatsoever,” offers Hammer & Dolly technical writer Larry Montanez. “Audi has some light pulling in only certain areas on the Audi TT because it's steel and also because there's some adjustment to the aluminum in the front with some bolting areas, but that's it.

“The newer cars won't let you repair them the wrong way; they'll let you know that you can't do something,” he adds. “But aluminum really lets you know right then and there that you're not repairing properly. It's very stubborn; it stays where it wants to stay.”

An extensive interview with Ford representatives regarding pulling and other F-150-specific issues is currently underway and will appear in a future issue of Hammer & Dolly.

Getting Shops Ready Facilitated by the Assured Performance Network, Ford’s new National Body Shop Program seeks to identify and promote those facilities that have the right tools, equipment, training and facilities to repair Ford vehicles back to manufacturer specifications. The cost for either independent shops or dealer facilities is $2,950 a year. Ford dealers become officially Certified, while independents have a slightly different distinction, “Recognized.” To participate, independents must have their Ford wholesale parts dealer officially sponsor them, but the dealers are able to sponsor as many shops as they want and believe are able to become Recognized.

To help shops make the smoothest transition into the Program as possible, Assured Performance has posted an online brochure explaining its requirements (as well as offering a self “assessment” tool) at www.certifymyshop.com. Also, rather than promoting specific equipment brands, Assured Performance is encouraging competition by posting manufacturers’ specifications for the equipment needed to perform repairs. Shops can then purchase what they prefer as long as it meets the requirements. Additionally, Assured Performance has adopted a “certified once, recognized by many” philosophy, meaning that the $2,950 fee also covers aluminum and/or general repair certification-recognition from Nissan, Chrysler and other OEMs that could become involved with the Assured Performance Network moving forward. By the end of 2014, Assured Performance plans to have at least 2,000 body shops enrolled for Ford and the other OEMs’ Certification-Recognition programs that leverage their same system. The Program includes developing a business development and evaluation process to offer a plan and path forward to shops that fall short of the requirements.

Getting Shops Paid With the 2015 F-150 just around the corner, WMABA member Laura Gay is working hard to become a full-fledged aluminum repair station in time to service the next crop of F-150 customers. Although her two businesses already perform minor aluminum repair, she has

spent $50,000 in each of the facilities to get up to speed by the end of the year.

“I think a lot of shops in my market aren’t going to initially make the investment, so I think I’m going to corner the market on it [in the beginning],” she says.

Of course, committing $100,000 to repairing a certain type of vehicle is an enormous undertaking for any repair business – and one that requires a realistic return on investment. In an industry that is already battling to get paid to repair steel, the need for suitable payment to handle advanced aluminum is impossible to argue or ignore.

“It has to be a higher Labor Rate, number one,” Gay says. “You’re working with a completely different material; it takes a much higherskilled technician. You’re not going to be able to get a B tech to be able to do this; you’re going to require an A-Plus Plus technician to have to work on this.”

Pushing for adequate compensation for aluminum repair is nothing new for Ron Reichen, owner of Precision Body & Paint in Beaverton, OR. With his experience as a certified aluminum repair provider dating back to 2003, Reichen heard plenty of “you’re the only one who charges for that” when he initially attempted to collect a higher rate for aluminum work. This led him to ask the customers to pay the difference, which he says put pressure on the carriers. Eventually, the tide began to change; Reichen says that a large majority of insurance carriers are currently paying his higher rate for aluminum. For the remaining carriers, the shop has the customer pay the difference or they utilize the Assignment of Proceeds or the appraisal clause in the policy.

“At first, [the insurers’] response was, ‘It’s no different than steel,’” he recalls. “They didn’t want to acknowledge my expenses in building the clean room, the training and the specialized tools. You can’t even use the same hammer and dolly that you use for aluminum on steel because of galvanic corrosion transfer.”

Although the F-150 is earning much of the attention lately in the getting-paid-for-what-you-do debate, it is important to note that the issue is not about a single vehicle from a single manufacturer. The type of material used on a particular vehicle is far less important than the repair industry’s ability to be adequately paid to bring that vehicle back to pre-accident condition.

“This issue isn’t about aluminum; it is about pricing our services based on the increasing costs associated with fixing the vehicles right, regardless of if it is aluminum, carbon, or specialty-subsets of steel,” offers Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS). “Our industry invests in highly sophisticated equipment and specialized, intensive training that is often make- and model-specific, and those costs are going to have to be recovered. The biggest challenge facing repairers isn’t becoming capable in aluminum repair; it is the downward pressure being placed on repairers from an expectation that somehow we are able to do more, and invest more, for a lesser return.”

Naturally, the Information Providers would have a role to play in the industry’s ability to charge suitable rates for aluminum repair. As of this writing, CCC ONE has the ability to establish up to four custom Labor Rate categories through the “Add Charge Category” function under Rates>Labor. Industry leaders are currently investigating the other IPs’ response to this issue; WMABA intends to make the results of this inquiry available at www.wmaba.com/aluminumrepair.

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COVER STORY Of course, any shop interested in repairing the 2015 F-150 would be smart to first consider the volume they might experience before investing considerable funds to repair a vehicle that might not even show up in their bays.

“We found that until I had three aluminum manufacturer certifications, [I didn’t start] to get a return on investment,” offers Reichen. “Unless you have a phenomenal amount of volume [of one product line] – I would think you would need 25 percent of your vehicles coming in the front door requiring the aluminum process – you need to sit back and wait until General Motors comes out with their truck in two years and we see other manufacturers coming out with aluminum… to have enough volume to support dedicating that shop space and buying all that equipment if you don't already have it."

“What the average repairer might want to look at is how many current model Ford pickups they repaired in 2013,” adds Wano. “[They’re] going to have to grasp the concept that they’re going to have this added [equipment and training] expense and all that it involves before seeking an ROI based on the number of vehicles they may have a possibility of [repairing] during the first 12 months of inception of the aluminum-body Ford pickup.”

With only about six months to go before the 2015 F-150 turns up at dealerships, the collision repair industry has a lot of homework to do before being able to repair these technologically advanced vehicles – and turn a profit at the same time. No matter where you stand on the aluminum issue, one thing is for certain: This material is here to stay.

As Wano says, “Aluminum is not going to be the ‘exotic’ material any longer. Eventually, we’re all going to have to step up and be prepared to repair aluminum.” H&D

Executive Director’s Thoughts The worst mistake repairers can make is to accept a vehicle for a job without the proper equipment or training to repair it. That customer has entrusted his or her safety - and that of his or her family - upon your expertise to complete a safe and proper repair. This interim may be an opportunity for repairers to partner up and sublet the work while maintaining the customer relationship. Otherwise, the best option is to let the job go to a repairer who can do it properly.

- Jordan Hendler

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June 2014

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EXECUTIVE DIRECTOR’S

MESSAGE NOTES FROM THE WIN CONFERENCE Recently, I was honored and humbled to receive the Most Influential Women Award from the Women’s Industry Network in San Diego, CA, during their annual conference (which I attended this year for the first time). Anyone who knows me knows that I’m not much on drawing any attention to being a woman in a male-dominated field and industry. I’ve never been a fan of differentiation, and instead have been an advocate for recognition of a job well done. Growing up with the desires to work on cars, then to become a welder and ultimately to join the collision industry, I never felt that these nontraditional callings - though not necessarily “normal” - were a hindrance. All that said, I still think it is important for women in our industry to have a network of other women as mentors, colleagues and confidants.

In being a part of the WIN conference, I was open to understanding their vision of an organization “dedicated to encouraging, developing and cultivating opportunities to attract women to collision repair while recognizing excellence, promoting leadership and fostering a network among the women who are shaping the industry.” I saw many attendees doing just what I did when I first started to participate in national meetings: Meeting new people and making connections that could widen one’s network in the industry.

On top of making those connections available, the WIN conference offered motivational seminars and break-out educational meetings that anyone – man or woman – would have found valuable. The speakers were vibrant and moving in their material and gave many takeaways.

The goal of this conference was to “power up” women in our industry. Anything that boosts personal confidence and fosters a greater understanding of the workplace dynamic is a positive. I realized that many of the women in attendance hadn’t received the motivational

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Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

support and education that I had received growing up in the industry. They didn’t have the same connections that I had; this event offered a great way for them to grow as people and businesswomen.

If all the employers in our industry would take the time to empower their employees in this same way, then I could see us having a more positive work environment and stronger, more self-starting people.

While at the table waiting for the award ceremony to start, I realized that from the inception of the Most Influential Women Award in 1999, I had a relationship with each of the women honored by the program. Every one of those women was a friend, a mentor or at minimum a colleague of mine, and there is no way I could have understood or made my way through these past 16 years without them. I have a lot of respect for them, and a lot to be thankful for in knowing their role in where I am today. I’m also truly thankful for my parents, who are also in the industry. My dad, Jeff Hendler - who is administrator and past chairman for the Collision Industry Conference - showed up at the conference to bear witness to my award. That’s him in the photo with me. He’s been the most inspirational figure in my life, in step with my mom, Linda Atkins, who is the administrator for the Society of Collision Repair Specialists. They’ve both taught me that perseverance can overcome any obstacle, and that is the mantra for everything that I do.

Man or woman, we are part of one of the greatest industries in America. I couldn’t be more blessed to work in it, with the best people out there. Other associations I’ve worked with have shown me that you are the largest collection of the hardest working andmost generous and supportive folks – bar none.

You truly are a treasure, and I thank you for being so. H&D

Photo courtesy of Barbara Davies

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ADVERTISERS’ INDEX Alexander & Cleaver............................19 Alexandria Toyota ................................12 All Foreign Used Auto..........................31

Audi Group ..........................................23 Axalta Coating Systems ......................4

BMW Group ........................................24-25 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3

BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................11

Chesapeake Automotive Equipment ..46

Empire Auto Parts................................39 Future Cure ........................................35

Honda Group ......................................45 Hyundai Group ....................................40

Koons Ford ..........................................38 Mazda Group ......................................17 MINI Group ..........................................30

MINI of Baltimore County ....................IBC Mitsubishi Group..................................41 Mopar Group ........................................7

Nissan Group ......................................43 O’Donnell Honda ................................39 Packer Norris Parts ............................9

Porsche Group ....................................32

PPG ....................................................IFC P&L Consultants ..................................38 Russel Toyota ......................................19

Safety Regulations ..............................46 Subaru Group ......................................27

Toyota Group ......................................33

Valspar Automotive..............................OBC VW Group............................................15

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