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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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A Q&A with AASP/MA’s New President MATTHEW CIASCHINI Longtime Chicopee Shop Closes After
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January 2025 3
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4 January 2025
New England Automotive Report
January 2025 • Volume 23, No. 1
DEPARTMENTS
CONTENTS
COVER STORY
EXECUTIVE DIRECTOR’S MESSAGE 6 | Be a Part of the Success
by Evangelos “Lucky” Papageorg
NATIONAL NEWS
8 | CREF’s 2025 School Benchmark Grants and Student Scholarship Applications Open
LOCAL FEATURE
12 | Don Roy Closes Shop After 30-Plus Years by Alana Quartuccio
GUEST FEATURE
28 | Repairers Win Big against Labor Rate Suppression by Alana Quartuccio
LEGAL PERSPECTIVE
16 | The Collision Repair Industry: Reclaiming Our Golden Age by Andrew Plischke
LOCAL FEATURE
24 | Progress Through Change: A Q&A with AASP/MA’s New President Matt Ciaschini by Chasidy Rae Sisk
ALSO THIS ISSUE
34 | Dear Victor – Industry Expert Clarifies Supplement Time Requirements
7 | AASP/MA MEMBER APPLICATION by Coverall Law and 20 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS Victor A. Fanikos, Esq.
New England Automotive Report
January 2025 5
EXECUTIVE DIRECTOR’S MESSAGE
Be a Part of the Success EVANGELOS “LUCKY” PAPAGEORG
As with every new year, we have the opportunity to make resolutions that – when acted upon – will have a lasting and positive impact on our future well-being. 2025 is no different than any other year, except for one VERY important factor: it marks the first time the collision repair industry has a seat at the table where decisions will be made about a minimum fair and reasonable labor reimbursement rate from insurers. This achievement is the result of years of hard work by collision repairers, particularly the members of AASP/MA, our Board of Directors and our legislative agent. On November 19, 2024, the Governor signed the Economic Development Bill, which created the Auto Body Labor Rate Advisory Board (ABLRAB). This is a huge victory and a symbol of the positive change occurring in the legislature. For years, the insurance industry had a firm grip on decisions affecting the labor reimbursement rate, but that control is now weakening. The efforts of our association and
legislative agent, facing off against two powerful insurance associations – one Massachusetts-based and the other national with over 50 lobbyists – were successful, thanks to the support of key legislators in both the Senate and the House. Now, are you ready to take on the new challenge? Are you ready to raise your voice and contribute to the efforts that will help us THRIVE in ‘25? If you’re a member of the ALLIANCE and have answered the call to reach out to legislators, involve your employees and customers – THANK YOU! If you’ve completed the National AutoBody Research (NABR) Labor Rate Hero survey – THANK YOU! If you’re taking steps to free yourself from detrimental referral and program shop contacts that have been used to artificially suppress labor rates for decades – THANK YOU! If you decided you no longer want to just “survive” and are willing to stand up for fair rates like the medical profession does by refusing to accept below-market labor rates or
deny payment for OEM-recommended procedures – THANK YOU! These actions are key steps in ensuring you will THRIVE in ‘25. If you’re a shop that hasn’t yet realized the power you have to positively impact your business’s future – WHAT ARE YOU WAITING FOR? If you’ve been sitting on the sidelines, not wanting to “rock the boat,” while a relatively small group of dedicated, involved, hardworking shop owners do the heavy lifting, SHAME ON YOU! Think of how much further ahead you and your business could be by: • Joining the ONLY association that has been fighting and, now successfully, advocating for your interests; • Staying informed about changes in the marketplace and the evolving needs of modern vehicles; • Recognizing that if you keep doing what you’ve always done, you’ll only get what you’ve always gotten; and • Preparing for the year-long task of making the most of the ABLRAB and its potential to address the artificially suppressed labor rates. Keep in mind, this process will take a year to develop a recommendation for the Insurance Commissioner. Can you afford to wait a year? What’s stopping you from taking action now to position yourself to THRIVE by the end of the year? Many shops across the state have been charging their posted labor rates for years, staying busy and benefiting from educating vehicle owners, empowering them to seek – and receive – full reimbursement from insurers. continued on pg. 8
6 January 2025
New England Automotive Report
Membership Application 2025-2026
AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741 Email: admin@aaspma.org
Please complete this form and return to our office via mail or email with your dues payment. Thank You! BUSINESS INFORMATION Massachusetts Shop Registration # __________________
Total number of Staff (Techs, office, Mgrs)________
Company’s Official Name: ________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: (______)-________-___________ Fax: (______)-________-___________ DUES STRUCTURE. Collision Shop Annual Dues: $650 / 12 Months* PRIMARY BUSINESS CONTACT Name: _______________________________________________________________________________________________________________ Email: _______________________________________________________________________________________________________________ As a member in good standing, your shop WILL BE listed on our website. Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.
Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Healthcare plan � Dental, Vision plan � PFML savings program � Credit card processing � Grant writing/training � Google presence optimization � All benefits PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) CC #: ______________________________________________________________________
OR
EXP: ________/___________ CID: _________________
Billing Address: ______________________________________________________________________________________________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ Check here � to opt out of auto renewal using this credit card information for future renewal Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction
I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues 2025-2026 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
REV 12/24
REFERRED BY _________________________ COMPANY_______________________________ New England Automotive Report
January 2025 7
[EXECUTIVE DIRECTOR'S] MESSAGE continued from pg. 6 Just as they have done with our legislators, insurers are losing control over more of their policyholders, especially those who have been forced to transition from “policyholders” to “claimants” seeking fair compensation for their losses. These claimants are learning firsthand the differences in how they are treated by insurers once they need vehicle repairs. They’re also discovering why insurers steer them toward certain shops.
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Once again, THANK YOU to everyone who worked so hard to get us to the ABLRAB table! We all owe you a debt of gratitude and look forward to working together to ensure continued success in ’25 and beyond. For those who have been observers rather than participants, I hope that as you read this, you recognize the incredible opportunity before you. Don’t just ride along on the coattails of others – be a part of the success. Yes, whether you decide to participate or not, you’ll benefit from the efforts of others, but how much more fulfilling will it be to say, “I HELPED MAKE IT HAPPEN”? JOIN NOW! See the application on page 7, or visit the AASP/MA website (aaspma.org) and click on the “JOIN NOW” tab on the home page. YOU WILL NOT REGRET IT!
GENESIS OF WEST WARWICK 405 Quaker Lane West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org.
[NATIONAL] NEWS
CREF’s 2025 School Benchmark Grants and Student Scholarship Applications Open Collision repair facilities around the country desperately need talented workers to address the ongoing workforce shortage, yet a lack of qualified young professionals are entering the industry for various reasons. Many schools’ collision programs are underfunded, and post-secondary students seeking to enhance their skills and knowledge often struggle to afford tuition and tools. The Collision Repair Education Foundation (CREF) addresses these needs through its Collision School Career Readiness Benchmark Grants and Student Scholarship awards, thanks to support from many generous industry donors and sponsors. In 2024, CREF awarded $536,000 in grants to 80 schools, benefitting over 4,000 students training in these programs this year alone. The Benchmark Grants recognize those programs that excel at educating students but which require additional financial assistance due to constrained school budgets, providing funds to purchase the tools, equipment and supplies necessary to enhance
their students’ learning experience and elevate the caliber of their graduates. The 2024 Student Scholarships benefitted 90 students with over $235,000 awarded in financial assistance to ensure those students were able to continue their education, preparing them to pursue a successful career in body shops around the country. Applications for CREF’s 2025 Student Scholarships open on January 8, with a deadline of March 6, 2025. Applications for CREF’s 2025 School Benchmark Grants open January 22 through June 27, 2025. To apply for a Benchmark Grant or Student Scholarship – or to learn more about supporting CREF’s efforts to promote the industry to future generations – visit CollisionRepairEducationFoundation.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
8 January 2025
New England Automotive Report
New England Automotive Report
January 2025 9
10 January 2025
New England Automotive Report
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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
Balise Subaru 561 Quaker Ln. Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
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January 2025 11
[LOCAL] NEWS
Longtime Shop Owner Bids Farewell to Collision Repair After spending more than five decades in collision repair – 30-plus of those years running his own business – Don Roy has decided to close up shop. “I’m 73, so the best thing was to retire for the last time,” he shared during his final weeks running Don Roy’s Auto Body & Appearance Center – a staple in the Chicopee community since the early 1990s. The shop has been closed since early December. “I think I retired six times, but I always wound up right back here,” he says of his lifelong career, which sure had its challenges over the years. He readily admits some of those never-ending frustrations led to his decision to close the door on collision repair for good after decades of running a successful operation. An insufficient labor rate – and therefore the inability to pay technicians what they deserve – are at the top of that list. “We did survive, until this year when we realized we were getting very limited in available help as far as technicians go. It really transpired because we’ve been pretty stagnant in Massachusetts with the labor reimbursement rate that insurance companies pay us. So, we’re limited to how much we can offer our technicians, and that was a major reason we decided to close.”
12 January 2025
The shop was a staple of the Chicopee community for three decades.
Things were very different when he first got into the industry. The youngest of seven children, he was exposed to automotive work at an early age as his father ran an auto repair business next to his childhood home. Being the youngest with four older brothers, young Roy was often asked to be the gopher of the team, although he didn’t care much for mechanical work. Later his older brothers exposed him to the auto body side of the business, but as a kid, “I had no clue what I wanted to do.” He went on to college to earn a degree in business administration and spent a few years playing at colleges and battle of the band events with his band, The Midnighters. The band eventually fizzled out when members moved on to get married
New England Automotive Report
or attend college. Roy admits he still had no clue what he wanted to do. He wound up taking a part-time job at an auto body shop – Lou Herman Auto Body – where he “grew from the bottom of the rack. When I left there, I was the executive vice president.” After 25 years with the business, he decided it was time to go on his own. He started Don Roy’s Auto Body in 1992 in a 4,000 square foot shop with limited parking in downtown Springfield on Worthington Street. He leased the space with an option to buy, but after three years, Roy got an opportunity to move the business to a larger and more convenient location in Chicopee. The business would wind up calling 1416 Grandby Road its permanent home for 28 years. Being located right on a main drag most certainly helped contribute to many years of success. “At that point, we signed up with any and every insurance company in Massachusetts. Later in life, we learned that was the wrong thing to do.” Roy is proud to have employed “some pretty talented people” during those early years. “Back in the 1990s, people in the industry would move from shop to shop and were able to decide where they wanted to work and where they could be happy.
by Alana Quartuccio
We grew our shop, and we had six technicians. One focused on detail and did all the finesse, buffing and cleaning the cars. We had two in the paint shop – one to prep and one to paint. They were both pretty equal in skill and could trade off. We had three or four technicians on the floor at most times, and that kept everything running pretty smoothly.” Roy’s wife and daughter have also been principal members of the team. His wife Irene brought her prior dental office management experience to help with Don Roy’s Auto Body’s office management for 10 years before she decided to retire. He says she “found out how different dealing with insurance companies is in our business as opposed to dentistry” but “did a great job and was friendly with everyone in the claims departments.” Their daughter, Karen Rattell, has been instrumental in keeping the business successful over the past 20 years. She invested time into learning more about the business, even taking a master course in how to run a body shop and returning with many ideas. Roy says it was a “no brainer” that she was poised to work in the business. She always knew how to make customers relaxed and assured that they came to the right place. At one point, the Roy family considered having Karen take over for her father, but with insurers’ refusing to understand the costs body shops have are not just “a cost of doing business,” they made the difficult decision to close up shop for good. “In my estimation, most of the employees who worked for us over the years had pretty large investments in their own tools. I would say that an A-Tech probably spends anywhere between $10,000 to $15,000 on personal tools that they provide for themselves. The body shops, as our shop did, would provide the heavy machinery, like the frame machines and the lifts and water powers and things that weren’t affordable to every technician. Unfortunately, the insurance companies considered that to be the cost of doing business. And as we all know, as years went on, everything became more expensive. However, the insurance companies couldn’t see that in Massachusetts as far as changing the labor reimbursement rate.” Frustrations with battling insurers led the business to eventually move away from referral programs. “We decided that we’d still do business with [certain companies], but we would not be a referral shop by any means, and we’d have to negotiate everything that we did with them.” Roy was active with the Massachusetts Auto Body Association at the time and even served as president in 1997. “We tried to better the situation between the body shops and the insurance companies,
because let’s face it, we have to work with them every day; they have to work with us. In the beginning, it was like there was a war going on without any bombs or anything exploding, but that’s the scenario that I always felt: that we were under attack and we were losing the war.” Roy believes things got “somewhat better, because some of the people that were actually technicians in different body shops crossed the line and went to the other side of the fence to work for the insurance companies. Those who did that brought their feelings with them, too, because they knew what was involved with repairing cars in the shop. Negotiations became more fair to the point where the insurance companies started listening to what we actually have to do.” But it wasn’t enough of a change to help his operation survive long term. “They still limited us to what we could negotiate for the labor reimbursement rate and for cost, and it became very tight. It seemed like we were swapping eggs in one basket and putting it into the other. And at the end, our basket was nearly empty. So over the years, that drove us to ask ‘what are we really doing here?’ I couldn’t afford to pay our guys any more than $30 an hour working on a $40 to $44 an hour labor rate. And our crew started diminishing. “And with the new revolution of the cars coming out today, the repair situations are going to go absolutely crazy,” he predicts. “Shops will have to invest in more tooling, but the insurance companies continue to say ‘it’s a cost of doing business.’” With the shop officially closed, Roy intends to spend time with his wife visiting their Florida home, while Karen has decided to pursue other career interests. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report
January 2025 13
[INDUSTRY] UPDATE
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14 January 2025
down and efficiency high. Its compact, portable design allows repairers to position the welder wherever needed, enabling it to take on projects of any size. The InvertaSpot NG is perfect for both entry-level and expert welders, with pre-set parameters for a variety of materials and thicknesses. Repairers can begin working quickly without having to spend time on complex adjustments; more experienced users can manually fine-tune settings, allowing for precise welds to meet industry standards. Whatever a repairer’s skill level and scope of repair job, the InvertaSpot NG will help in streamlining the repair process and furthering productivity. To learn more about the InvertaSpot NG or to view Reliable Automotive Equipment’s full offering of products, services and support, visit raeservice.com.
New England Automotive Report
The RAE InvertaSpot NG combines accuracy with a user-friendly interface for increased efficiency and precise welding solutions.
New England Automotive Report
January 2025 15
[GUEST] FEATURE
The Collision Repair Industry: Reclaiming Our Golden Age As a veteran of the collision repair industry for over 40 years, most of it spent right here in Illinois, I’ve witnessed firsthand how a once-thriving industry has been taken over by corporate giants and insurance-driven monopolies. The collision repair industry – once dominated by local, family-run businesses that prided themselves on craftsmanship and trust – has now been transformed into a corporate behemoth, a machine driven by private equity, insurance company influence and a relentless drive for profits. The consequences? Lower-quality repairs, manipulated consumer choices and the decimation of small, independent operators. But here’s the good news: It’s not too late to fight back! This article is a call to action – not just for repairers like me who’ve seen the erosion of our industry, but for consumers who deserve better. It’s time to take back control. The Consent Decree’s Unintended Consequences: How Private Equity and Corporate Power Shifted the Industry To understand how we got here, we need to look at the history of the collision repair industry – starting with the Consent Decree of 1963. On the surface, the Decree was a victory for consumers, designed to prevent monopolistic practices and ensure competitive pricing. It aimed to protect the relationship between insurers and repair shops and maintain fair access to the repair marketplace. But what the Decree unintentionally did was lay the groundwork for private equity to invade the collision repair space and shift the power toward corporate giants, accelerating the rise of referral programs. These programs, at their inception, were sold as a way to streamline the claims process and create a more efficient system for consumers. What we didn’t foresee was how these programs would be hijacked by insurance companies, enabling them to dictate repair terms, control pricing and ultimately drive small independent shops out of business, aided by private equity investors under the guise of MSOs. Gerber Collision: The Corporate Guinea Pig of Referral Programs Gerber Collision & Glass, an Illinois-born company, was one of the earliest pioneers in this new landscape. Initially, Gerber aimed to grow by partnering with insurance companies, using contracts to secure a steady stream of repair jobs. However, as the company expanded, it became a case study in the dangers of corporate consolidation and the influence of private equity. Over time, Gerber’s focus shifted from quality to quantity, aligning more with volume-based, low-reimbursement agreements that prioritized speed and cost-cutting over consumer safety. Gerber’s meteoric rise isn’t just about business savvy – it’s also about the role of private equity in accelerating that growth. In 2015, 16 January 2025
New England Automotive Report
Hellman & Friedman, a major private equity firm, took control of Gerber and began aggressively scaling the company by acquiring other repair networks and driving the business into low-cost, high-volume repair models. This move set the tone for the entire industry, signaling the start of an era where repair quality took a backseat to profits. Gerber is now part of Boyd Group Services Ltd., a Canadian company, which further illustrates the global corporate machinery behind this once-independent operation. Service King: The Texas Behemoth’s Expansion Fueled by Private Equity Then there’s Service King, another industry giant that followed the same model. Originating in Dallas, TX, Service King’s rise is tied directly to private equity-backed expansion. The company has been on an acquisition spree, purchasing local shops and signing contracts with insurance companies to expand its market share. Just like Gerber, Service King has used its relationship with insurers to create a nationwide repair network that dominates the collision repair space. But the story of Service King is also the story of how private equity firms like Apollo Global Management have fueled this growth. When Apollo took over Service King in 2015, the focus quickly shifted from repair excellence to profit maximization. The result? A repair model that often favors quick turnaround times and low reimbursement rates – cutting corners on repairs and sacrificing safety in the name of profits. This is the price consumers pay when corporate interests, backed by private equity, take precedence over the craft of collision repair. Crash Champions: Illinois-Born, Private Equity-Fueled and Rapidly Expanding The story of Crash Champions is no different. Founded in Mokena, IL in 1999, Crash Champions began as a small independent shop but quickly grew by acquiring other businesses and partnering with insurers through referral programs. What sets Crash Champions apart is its incredible pace of growth, which has been fueled by a series of aggressive acquisitions and partnerships with private equity firms. In 2020, BlackRock, a global investment management firm, acquired a significant stake in Crash Champions. This partnership supercharged their expansion, enabling the company to acquire hundreds of independent shops across the nation. Crash Champions’ rise is emblematic of the role private equity plays in the collision repair industry – driving scale, squeezing out competitors and prioritizing profits over consumer safety and repair quality.
by Andrew Plischke
The Great Suppression: How Referral Programs Are Eroding Repair Quality and Consumer Rights The stories of Gerber, Service King and Crash Champions all point to a larger issue: the erosion of quality and consumer rights as corporate power and private equity shape the collision repair industry. Today, insurers routinely steer customers toward their “preferred networks” of program shops, pressuring them to use low-cost providers, rather than choosing shops that prioritize OEM standards and safe repairs. The problem is this: there’s no law that says a consumer has to use a program shop. But the insurance companies make it seem like they do! They pressure consumers with misleading claims, such as suggesting that program shops offer faster repairs or lower out-of-pocket costs, when in reality, these shops are often incentivized to cut corners on repair quality and safety. As insurance companies and private equity-backed repair chains like Gerber, Service King and Crash Champions continue to dominate, independent shops – especially those focused on quality and safety – are being squeezed out. The pressure to meet volumebased targets often forces these corporate shops to rush repairs and take shortcuts, undermining the safety of consumers and the integrity of the repair process. How Laws Can Help Level the Playing Field Collision repair shops are facing an uphill battle to protect their independence, and some areas may find it more challenging than others. Illinois is fortunate to have some of the strongest consumer protection laws when it comes to collision repair. The Illinois Collision Repairers Act (815 ILCS 308) ensures that consumers have the right to choose their repair shop – a right that insurers can’t take away, no matter how hard they try. Insurance companies are required to give consumers a list of at least three repair shops when they file a claim. And CRP (Consumer Repair Protection) regulations also mandate that insurance companies must cover the cost of repairs at non-referral program shops, as long as the repairs meet OEM standards. This is a huge win for independent shops in the state, but it’s something that many consumers aren’t aware of. There are also other regulations, like Illinois Administrative Codes 919.50 and 919.80, that outline fair claims practices and protections against unreasonable insurance practices, ensuring that consumers and independent repairers are not taken advantage of. These laws are critical tools that can help push back against the unchecked power of corporate-driven referral programs. There’s still more that can be done to strengthen shops’ ability to remain competitive here, but this is a pretty solid foundation that could benefit other markets if they’re able to implement similar laws.
A Call to Action: How Independent Operators Can Take Back Control Despite the overwhelming corporate influence in today’s collision repair industry, there’s still hope for independent operators across the nation. By focusing on consumer rights, safety, and high-quality repairs, we can reclaim the ground lost to corporate giants. 1. Embrace Certifications and Safe Repairs The first and most important thing independent shops can do is embrace certifications and OEM repair standards. By committing to the highest standards of repair and investing in the latest technologies, we can offer consumers the safest, most reliable repairs – and differentiate ourselves from the high-volume, lowreimbursement program shops. Consumers are becoming more savvy, and those who seek out quality repairs will find the best options at independent shops. 2. Become Experts in the Law and Protect the Consumer As an independent repair shop operator, it’s crucial that we become experts in collision repair laws and insurance regulations. Illinois laws like the Collision Repairers Act and the Administrative Codes offer powerful tools that can protect both consumers and repairers from the overreach of insurance companies. Educating your customers on their rights is essential – not only to protect your business but to ensure that consumers understand they have the right to choose where to repair their vehicle. 3. Clarify the Consumer’s Right of Choice Independent operators must educate consumers about their legal right to choose their repair shop. Too often, insurers push customers toward their own program network with misleading information. By communicating the true scope of consumer rights and clarifying the benefits of independent repair, we can empower customers to make informed decisions that prioritize safety and quality over speed and cost-cutting. It’s time to remind consumers that they hold the power! Conclusion: The Future is in Our Hands The collision repair industry is at a crossroads. The rise of corporate giants and private equity-backed repair chains has fundamentally changed the landscape – often at the expense of quality, consumer safety and the small independent shops that once made this industry thrive. Gerber, Service King, Crash Champions and similar companies, fueled by private equity and driven by the demands of insurance companies, have reshaped the repair industry continued on pg. 38 New England Automotive Report
January 2025 17
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18 January 2025
New England Automotive Report
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New England Automotive Report
January 2025 19
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[LOCAL] FEATURE
Progress Through Change: A Q&A with New AASP/MA President Matthew Ciaschini
Newly elected AASP/MA President, Matthew Ciaschini
The association has undergone some pretty significant changes in recent months. The association has seen a recent shift in leadership as Past President Kevin Gallerani (Cape Auto Body and Service; Plymouth) passed the torch into the capable hands of Matthew Ciaschini (Full Tilt Auto Body & Collision; West Hatfield). As the association’s new president, Ciaschini has high hopes for the progress that can be achieved if the industry works together, and he sat down with New England Automotive Report to share his thoughts on what the future holds for auto body shops in the Commonwealth. New England Automotive Report: What industry experience do you bring to your new role as President? Matthew Ciaschini: My brother Zac and I have co-owned Full Tilt Auto Body for the past 15 years. I started in this business with just the two of us and one body technician, and we’ve grown into a fairly successful collision business that employs 18 industry professionals, excluding Zac and myself. There have certainly been some pains throughout the process, but we love this industry. NEAR: Did you work in the auto body field before starting Full Tilt? 24 January 2025
MC: No, I was on a completely different path…it’s funny to think about the turns that life takes. Collision repair was Zac’s career; he worked as a painter for former AASP/MA member Ed Nalewanski (Ed’s Auto Body; Easthampton) before deciding to start his own little business. I was working as a special education teacher and deejaying on the side at the time. In 2010, my mother was sick with pancreatic cancer which she had been fighting for about five years. It took her life that year, but before she passed, she sat me down to express how much she wanted Zac and me to get along as brothers. Once she was gone, I remembered her words and took them seriously, so when Zac confided in me that he was struggling a bit with the business side of things at the shop, I offered to help out a couple days a week while I contemplated my next career move. I’d worked as a restaurant manager, so I had a little experience with running a business as well. I always loved cars and had a decent running knowledge of how they worked. Within a week of coming into the shop, I was working full-time to help prevent anything from falling through the cracks. Before long, I realized that this would be my “home” professionally, so I assimilated into my new career path by becoming a licensed appraiser and learning everything I could about the industry, cars and insurers. Now, here we are, 15 years later. I’ve come a long way, but I’m still learning every day. NEAR: When and how did you get involved with the association in Massachusetts? MC: Within the first year of my involvement in the business, Full Tilt became a member, but I started to get involved after I attended my first meeting. I met some experienced repairers – Mike Beal (Michael’s Frame & Collision; Westfield)
New England Automotive Report
and Peter Langone (Langonet Auto Body; Agawam) – who took me under their wings and became my mentors, offering business advice and encouraging me to become part of what they were doing. Both of them were adamant about getting young guys involved in the association, and they helped us grow as repairers to do the best we possibly could. They shared a philosophy of “do the best work possible without worrying about what the insurance company is going to pay,” and that mentality really dictated everything we did going forward. A couple years later, Pete started talking to me about becoming a member of the Executive Board, and I was inducted as a Board member during Casino Night at the Mohegan Sun Casino in November 2016. I served as treasurer during the 2019-2020 term, and when Kevin became president in 2021, he asked me to be his vice president. I accepted but just recently realized that meant I was next in line to become president (laughs). NEAR: When you first joined the association, did you have any ambitions of serving on the Board or becoming president? MC: No, not at all! I never thought I would be involved at this level. I remember watching Rick Starbard (Rick’s Auto Collision; Revere), who was president at the time, delivering a presentation. I looked up to him then and still do, but what he was doing was so far outside the realm of what I saw for myself…I mean, here was a guy talking about taking your business back, about being independent and telling the insurers what you’re going to charge because you have self-worth. It was so different from anything I’d heard before; it was amazingly refreshing. Even when Kevin asked me to serve as his vice president, I wasn’t thinking that I would fill this role in the future. I
by Chasidy Rae Sisk
just keep going where I’m needed because I believe we need to stick together in order to prop this industry up and help it progress to where it needs to be. NEAR: As AASP/MA President, what are your top priorities for the association moving forward? MC: First of all, I’m honored and excited to be stepping into this role, especially as we hope to rebrand the association. I believe this is a great opportunity for our organization and our industry. Progress requires change, and this feels like a rebirth for the association. I’m looking forward to seeing how this change helps us progress together. And I specifically mention the need to progress together because too often, shops push against each other and see competitors in a negative light. We need to recognize that coming together as an industry will help us elevate the standards of auto body repair across the board. A lot of times, we divide ourselves by focusing on who fits into which category: program or independent, family-owned-and-operated or MSO… None of that matters because we’re all fighting the same battle to get reimbursed by the same billpayer in most situations while helping keep the motoring public safe, so why aren’t we working together to make it better for all of us? I understand how easy it is to focus on the microcosm of your own shop, but AASP/MA is here to help promote the greater good, and being successful in that goal requires all of us. Continuing to push forward with our legislative initiatives is also important to me. Brian Bernard (Total Care Accident Repair; Raynham), our legislative director at-large, has been hugely influential in his role. With the support of Lobbyist Guy Glodis and the other backing we’ve developed over the years, I’m confident that we have all the
right pieces in place and that we’re going to make some meaningful progress this coming session. We also need to continue advancing when it comes to education by providing training to association members on the many facets of the collision industry that will help them better their businesses. Association membership means much more than just writing a check once a year; the value of that check pays off 100-fold by helping them run their businesses better, but to see the benefit, shops need to attend our meetings. With that in mind, it’s also important that we grow our membership to help advance a larger portion of Massachusetts shops. Dealer shops are powerful and hold a lot of weight in this industry, so I’d like to see more of them get involved. By lining up all these pieces, I think we can really demonstrate the value that this association offers and attract more shops to become members, and as we grow together, we become stronger, enhancing that value even more. NEAR: What do you think are some of the industry’s biggest challenges, and how do you hope to help address them in your new role? MC: Right now, the biggest challenge for the auto body industry in Massachusetts is the Auto Damage Appraiser Licensing Board (ADALB), which is why our legislative agenda for the past six years has included the need to move it from the Division of Insurance to the Department of Occupational Licensure. [Ciaschini will discuss his thoughts surrounding this initiative in next month’s edition of Damage Report, AASP/MA’s members-only newsletter.] Our ability to make this type of significant change is demonstrated by our success in establishing an advisory board to
study labor reimbursement rates [see page 28 for more information on this recent development]. That’s vital because we’re all dealing with the issue of techs aging out, and once we’re collecting a reasonable reimbursement rate, we’ll have a fighting chance of drawing fresh talent to this industry on the technician side and even on the appraiser and office admin side. Paying employees well is imperative, especially in a state that has the highest cost of living in the country. How can we combat the cost of employees if insurers continue to pay us $45 an hour to fix a car? We can’t, unless we better our industry by working from the inside out through these types of legislative initiatives that will improve things for all of us. That’s why it’s so important that we get out of our own ways and learn to work together as an industry. One of our biggest challenges is ourselves! We need to stop alienating other shops for their personal business decisions; our emphasis needs to be on valuing a high-quality and safe repair using OEM procedures. If we want to move forward in the right direction, we need to do things right. When we do good, good things happen. We cannot let another industry affect what we do because what we do impacts people’s lives. NEAR: What advice or encouragement would you offer a fellow shop owner who may be struggling? MC: Understand your worth. Do you know that you’re capturing the repair properly in order to get reimbursed properly? If you are doing it right but still struggling, why? Are you taking advantage of all the resources the Alliance has made available? If you’re not a member, now’s the time to join! I have no continued on pg. 38
New England Automotive Report
January 2025 25
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New England Automotive Report
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New England Automotive Report
January 2025 27
[COVER] STORY
REPAIRERS WIN BIG against Labor Rate Suppression
28 January 2025
New England Automotive Report
by Alana Quartuccio
Massachusetts collision repairers finally have something to celebrate as 2025 gets underway! Just weeks before 2024 came to a close, auto body professionals got what they’ve been waiting years and years to achieve – a victory in a long, and still ongoing, battle in the fight against labor rate suppression. On November 19, Governor Healey signed an Economic Development Bill package, approved by the House and Senate, that includes long-pursued language regarding the creation of a mechanism to address the artificially suppressed labor reimbursement rates Commonwealth collision repairers have endured for so many years. This will establish an auto body labor rate advisory board consisting of representatives from the auto repair industry, along with insurance representatives and an appointee from a consumer advocacy group and others to meet, study and review in order to make recommendations to the Division of Insurance for a fair and equitable labor rate. (See full language below.) AASP/MA has been leading the fight for years, shouting from the rooftops, rallying on Beacon Hill and lobbying for legislation, all because the insufficient insurer-controlled $40-an-hour labor reimbursement rate – the lowest in the nation – is just not enough to cover technician and office worker salaries, equipment, rent, training, healthcare and all of a collision repair facility’s overhead costs. Costs continue to rise year after year as the pressures to keep up with advanced technologies in these vehicles pile on even more
At a fundraiser in honor of Senator Michael O. Moore, (from L-R), AASP/MA members Doug Begin, Dana Snowdale, Lucky Papageorg, Gary Cloutier, Sen. Moore, Erica Lawrence, Michael Penacho and Ray Belsito
financial burdens. But finally, their cries have been heard, and things are moving in the right direction. “For the first time, our industry will have a voice at the table,” professed AASP/MA Executive Director Lucky Papageorg about the triumph. “We will now be at the table to discuss the intricate part of our business which is the labor reimbursement rate. It’s not about severity or paint and materials – it’s about the labor reimbursement rate. It is now up to everyone in the collision industry to take stock and make a decision about their future. Do they want to continue to just ‘survive,’ or do they want to create and be part of a thriving industry, one which draws talent to it continued on pg. 30
ECONOMIC DEVELOPMENT BILL: Section 292 of H5100 SECTION 292. There is hereby established an auto body labor rate advisory board to address any issues related to auto body labor rates. The advisory board shall consist of: 1 person appointed by the commissioner of insurance, who shall serve as co-chair; 1 person appointed by the attorney general, who shall serve as cochair; 1 person appointed by the director of standards; 3 persons selected from the auto insurance industry by the Automobile Insurers Bureau of Massachusetts; 3 persons selected from the auto repair industry from different geographic regions of the commonwealth by the Alliance of Automotive Service Providers of Massachusetts, Inc.; 1 person selected by the Massachusetts State Automobile Dealers Association, Inc; 1 person selected by the Massachusetts Association of Insurance Agents, Inc.; and 3 persons to be appointed by the co-chairs, 1 of whom shall be from a consumer advocacy group, 1 of whom shall be from a group representing the business community and 1 of whom shall be an economist with expertise on the insurance industry. The advisory board shall be responsible for creating, implementing
and overseeing a survey given to relevant auto body shops. The advisory board shall collect industry data including, but not limited to: (i) labor rates in neighboring states; (ii) auto body shop costs; (iii) total labor costs; (iv) inflation data; (v) workforce data; (vi) vocational-technical school trends; (vii) insurance premiums; and (viii) any additional information as requested by the advisory board. The results of the survey and the data collected shall be reviewed and analyzed by the advisory board. Not later than December 31, 2025, the advisory board shall make recommendations to the Division of Insurance for a fair and equitable labor rate and file a report of its findings, conclusions and recommendations with the clerks of the senate and house of representatives, the joint committee on financial services, the senate and house committees on ways and means and the division of insurance.
New England Automotive Report
January 2025 29
[COVER] STORY continued from pg. 29 rather than one which struggles to pay a fair and commensurate wage to its talented employees? Employees who, for decades, have seen their ability to earn a wage reflective of their knowledge and expertise, while keeping pace with the everchanging repair methods needed to repair today’s vehicles, eroded by artificially suppressed reimbursement rates paid by insurers. Now is the time to make a statement!” AASP/MA sent this message to the entire collision repair community in the Commonwealth after learning of this win. “This victory comes after a long-fought battle in the Joint Conference Committee and was one of the final sticking points to be resolved. Despite the immense lobbying efforts of the executive directors of the Massachusetts Insurer Federation (MIF) and the American Property Casualty Insurance Association (APCIA), backed by over 50 lobbyists and significant financial resources, AASP/MA’s efforts prevailed. The tireless work of our one executive director, our lone legislative agent (lobbyist), the Alliance’s Board of Directors and – most importantly – you, our members, ensured our voices were heard loud and clear.” “This is a major legislative victory for AASP/MA,” stated Guy Glodis, the association’s lobbyist. “This language, as inserted in the Senate Economic Development Bill and later accepted in the Legislative Conference Committee (and signed into law), is the
first head-to-head legislative battle we’ve won against the insurance lobby in decades. This language and legislation is the bedrock of a process that will no longer stagnate our reimbursement rate but will truly address and ensure a fair and equitable rate for all collision repair shops in Massachusetts. AASP/MA, its executive board and legislative committee continue to make significant progress with meeting legislators, educating the legislature and promoting our legislative agenda in Boston. We anticipate continued success in the 2025/26 legislative session, and we want to thank all the shops, businesses and membership for their steadfast outreach and advocacy with their legislators and legislature.” “It’s been a long road,” shared Kevin Gallerani, immediate past president. “This association has been pushing legislation in favor of a fair labor reimbursement rate for decades. This is a huge step forward for us and for the industry as we have been held back for 30-plus years. We’ve made some strides with our efforts having seen small increases in labor reimbursement rates over the past couple years, but it’s only amounted to a couple of bucks here and there. Thanks to this legislation, this Advisory Board will have to evaluate the labor reimbursement rate and evaluate why it’s so low. The only direction we can go is up. We will finally have continued on pg. 42
MEMBER
30 January 2025
New England Automotive Report
New England Automotive Report
January 2025 31
Why Join WIN? WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market. • Local/Regional Networking Events • Annual Education Conference • Educational Webinars
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32 January 2025
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New England Automotive Report
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Co-celebrating decades of creating chemistry between two industry leaders
Here’s to 241 years of combined service excellence This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it. Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.
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[LEGAL] PERSPECTIVE by Coverall Law and Victor A. Fanikos, Esq.
Dear Victor – Industry Expert Clarifies Supplement Time Requirements
In the collision repair industry, the rules governing the relationship between repair shops, insurers and appraisers are complex, often presenting unique challenges for shop owners seeking fair treatment and timely processes. To navigate these waters, it’s invaluable to have insights from those who helped shape the very laws and regulations that define the industry. One such expert is Victor A. Fanikos, Esq., a veteran legal mind with decades of experience in Massachusetts insurance law and auto damage appraisal oversight. Fanikos’ career spans nearly six decades, during which he has established himself as a trusted authority in the legal and regulatory framework surrounding motor vehicle repair and insurance. A former assistant legal counsel and acting general counsel at the Massachusetts Division of Insurance, as well as a former legal counsel to the Auto Damage Appraisers Licensing Board (ADALB), Victor’s contributions have left an indelible mark on the industry. He was instrumental in drafting the 212 CMR 2.00 regulations, which remain a cornerstone of the appraisal and repair process to this day. His co-authorship of the “Easy to Read Massachusetts Auto Policy” underscores his commitment to making complex legal issues accessible and actionable for stakeholders. 34 January 2025
New England Automotive Report
Victor’s firsthand experience in regulatory drafting, combined with his in-depth understanding of the mechanics of the appraisal process, has made him a sought-after expert witness and advisor. In his work with the ADALB, he played a pivotal role in mediating the often-complicated negotiations between repair shops and insurers, advocating for clarity, fairness and efficiency. Notably, his insights into the Massachusetts Mechanic’s Lien Statute (M.G.L. c. 255, § 25) and its application to preliminary repair work (commonly referred to as dismantling or “tear down”) have empowered repair shops to assert their rights and protect their interests. This article, centered on Victor’s insights, is more than a recounting of his expertise – it’s a resource for understanding the regulatory and legal landscape that governs the collision repair industry in Massachusetts. By drawing on Victor’s decades of experience and his deep involvement in the creation of the current regulatory framework, we aim to provide collision repair professionals with the tools and knowledge they need to navigate the appraisal process, enforce their rights and ensure fair treatment in dealings with insurers. From his historical perspective on the development of 212 CMR 2.00 to his advocacy for efficient, consumer-focused repair
practices, Victor’s contributions are a testament to the importance of strong legal foundations in ensuring a balanced and equitable industry. His legacy is not just one of legal precision but also of steadfast support for the collision repair shops that keep Massachusetts drivers on the road. Dear Victor: Could you clarify the differences between the supplement timing requirements outlined in the Massachusetts General Law versus the Code of Massachusetts Regulations? Also, what steps should a collision repair shop take if an insurer’s appraiser fails to conduct an inspection within the required timeframe? Victor Fanikos: You know, the whole timing issue around supplemental appraisals really just boils down to a drafting error. Back when 212 CMR 2.04 came out, it wasn’t meant to set different timing expectations from what’s in the Massachusetts
General Law (MGL) Chapter 90, Section 34O – it just ended up that way by accident. When the discrepancy was spotted, it was brought to the Board’s attention, and we all agreed it was more of a technical hiccup than anything intentional. Now, you might wonder why we didn’t fix it then and there. Honestly, at the time, it just didn’t seem necessary. We were seeing about 95 percent compliance from appraisers and insurers, so the Board decided there was no need to open up a hearing and get into the weeds over something that, in practice, wasn’t causing much trouble. Sometimes, stirring things up can do more harm than good, and we didn’t want to invite issues where there really weren’t any. For shops today, if they run into a situation where an insurer’s appraiser isn’t coming out on time, the process we set up is still a good route. The best first step is to file a complaint with the ADALB. Back in the day, the board’s executive secretary would often just pick up the phone and call the parties involved to try to settle things informally. A quick call from the Board continued on pg. 36
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January 2025 35
[LEGAL] PERSPECTIVE continued from pg. 35 usually encouraged people to sort it out without dragging everyone into a hearing, and that approach kept things efficient. But if an informal resolution doesn’t get you anywhere and you do end up filing a formal complaint, it’s worth knowing how the Board tends to look at these cases. We would usually assess whether the delay was down to the appraiser themselves or if the insurer’s practices made it nearly impossible for the appraiser to keep up with the workload. If it was the appraiser, they might face a temporary suspension to encourage them to stick to the timeline. But if the insurer’s operations were the issue – maybe they’d grown too fast or didn’t have enough resources to stay compliant – the Board would press the insurer to correct the underlying problem. Here’s one more piece of advice which may prove crucial: always track and document every complaint you file with the ADALB, and make sure to send a copy to the Commissioner of Insurance’s office. Track both mailings and consider sending certified. A well-documented paper trail showing that you’ve made repeated efforts to address the issue can be helpful if the Board isn’t moving fast enough; having that record can give your case some weight. In fact, there were a couple of times when the Commissioner’s office gave us a call asking, ‘What’s going on
down there?’ and that kind of nudge often sparked action. In the end, it’s about identifying the root cause and getting the wheels turning again. So, while the language in the CMR might not perfectly match the MGL, there’s a process in place to make sure shops have a way to address delays if they start affecting business. And if that old approach worked back then, I’d say it’s worth a try today.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or via email at spreston@coveralllaw.com.
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[GUEST] FEATURE
[LOCAL] FEATURE
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into one dominated by speed, volume and profit margins, leaving consumers with fewer choices and lower-quality repairs. But it doesn’t have to stay this way! Consumers have the power to choose where to take their vehicles. As independent repair shop owners, we still have the tools to fight back – through education, certification and the knowledge of our rights. While the system is stacked against us, it’s important to remember: we are the backbone of the repair industry, and we still hold the ultimate card – quality repair and consumer trust. The battle isn’t over yet, and there’s still time to turn the tide. By choosing quality over convenience, by supporting local independent shops and by demanding transparency from insurers and corporate repair chains, we can create a future where safety, craftsmanship and consumer rights are at the forefront. Now is the time for consumers to educate themselves and demand better! Now is the time for independent repairers to unite, stand strong and prove that quality can – and will! – prevail over corporate greed. The golden age of collision repair may be behind us, but it’s up to all of us to reclaim it – one repair at a time. Andrew Plischke is Director of Client/Insurance Reconciliation at Gold Coast Auto Body (Chicago, IL).
doubt that shops embracing the lessons we’ve been teaching for the past decade are able to grow and strengthen their businesses. It’s not meant to be easy, but instead of dwelling on the negative, we need to focus on the things we can implement every day to improve ourselves and our businesses. NEAR: Is there anything else you’d like to share as you begin your presidency? MC: Moving forward, the association will become a community, and the more community-minded we become, the better chance we’ll have to help every individual member grow a better, stronger business – and the more we’ll also improve the industry at large. Belonging to an association isn’t about “what can you do for me?” It’s about the progression of the collision industry and how we are going to make it better so we can sustain the livelihoods of ourselves and our employees for the next 10, 20 or 30 years. It’s a big goal, but together, we can accomplish anything.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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[COVER] STORY continued from pg. 30 a Board put together to discuss this issue and only this change to ‘the’ issue of the labor reimbursement rate, so this is a huge step in the right direction for our future.” The association commends all those in the industry who participated by spreading the word via phone calls, letters and attending legislative fundraisers, helping to accomplish a first for repair shops here in Massachusetts. As part of the legislative action, AASP/MA has been granted the privilege of naming three auto body professionals to this Board and were in the process of selecting those individuals at the time of this writing. Clearly, the work is not over and has only just begun. In addition to their efforts in support of a fair and reasonable labor reimbursement rate, the association will continue its push to see that the Auto Damage Appraiser Licensing Board (ADALB) be moved from the Division of Insurance to the Division of Occupational Licensure. The new year also brings new leadership and new faces to the AASP/MA Board! Matthew Ciaschini (Full Tilt Auto Body & Collision; West Hatfield) has moved up to the role of president after spending two terms as vice president under Gallerani, who will remain an active member of the Board as immediate past president. (See page 24 to read what Ciaschini foresees is next on the horizon for the Massachusetts auto body association.) “Our voices are being heard and understood,” added Papageorg. “We’ve built strong allies at the highest levels in both chambers, many of whom will be future leaders in the upcoming legislative session. We must continue applying relentless pressure to create a platform where the collision industry can once again thrive. We are a great industry – and we can be even greater!”
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
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