6 | Give Yourself a Pat on the Back by Matthew Ciaschini
8 | Why Did You? by Evangelos “Lucky” Papageorg
12 | AASP/MA Ready to Thrive in 25 with New Leadership by Alana Quartuccio
by Chasidy Rae Sisk
Give Yourself a Pat on the Back
It’s been a long time coming, but all our hard work over the past six years has finally paid off with some progress on the labor rate suppression front!
The Economic Development Bill that passed last November includes the establishment of an auto body labor rate advisory board that will survey shops in the Commonwealth and neighboring states to determine and make recommendations on a fair and equitable labor rate. (See complete details in last month’s cover story, available at grecopublishing.com/near0125coverstory.)
While we clearly didn’t get the raise we want (and deserve) right off the bat, this will be the impetus to increase the minimum labor reimbursement rate to a more reasonable amount, an amount that allows us to pay our employees and invest in our businesses. I really cannot overstate the impact this victory will have on the collision repair industry in Massachusetts; it gives us a voice in the new Auto Body Labor Rate Advisory Board (ABLRAB) – three voices, technically, since AASP/MA was granted the privilege of selecting the auto repair industry’s representatives.
The ABLRAB has its work cut out for it with plenty left to accomplish, but once they determine and suggest what the labor reimbursement should be for body shops in our state, I believe their efforts will become invaluable. Moving forward, I think that our industry’s involvement on this Board will become a tool we can use to promote the need for us to always have a seat at the table to allow us to continue progressing the industry as these needs arise.
When costs go up, that Board meeting twice a year will hear from the repair shop representatives about those increased costs, so they can discuss why the labor reimbursement rate needs to continue to increase at a proportional rate so we never again find ourselves 40 years behind the time.
Making any type of progress legislatively is tiresome and timeconsuming, and this achievement comes after six years of work from many individuals. I remember sitting on a call with Immediate Past President Kevin Gallerani, Executive Director Lucky Papageorg and about five others back in 2020 when we were hammering out the details of what would become our labor reimbursement rate bill back then. Many iterations later, we’ve finally negotiated something that was palatable for both sides, and it has been adopted. It shows that all that hard work, frustration and feeling like we’re getting nowhere added up to make a difference and truly mean something positive.
This is a HUGE accomplishment that the association should be touting to everyone, not just our members but also those who have yet to make the forward-thinking business decision to become members. As a group, this association achieved something great, and we can accomplish even more when we work together. If you played any role – calling or writing your legislators, coming out when we marched at Beacon Hill or educating other shops – thank you; give yourself a pat on the back because you helped make the difference. If you weren’t involved, you owe a debt of gratitude to those who worked so hard on your behalf, and I encourage you to join us now so you can be part of the positive change we’re going to effect moving forward.
Our next big initiative is focused on the movement of the Auto Damage Appraisers Licensing Board from the Division of Insurance to the Division of Occupational Licensure; tune in to this month’s members-only newsletter, Damage Report, for my thoughts on those plans. Not a member yet? Join now for access! See the application on page 7 or visit aaspma.org
AASP/MA
PUBLISHER
Thomas Greco | thomas@grecopublishing.com
VICE PRESIDENT/SALES DIRECTOR
Alicia Figurelli | alicia@grecopublishing.com
EDITORIAL DIRECTOR
Alana Quartuccio | alana@grecopublishing.com
OFFICE MANAGER
Donna Greco | donna@grecopublishing.com
PRODUCTION COORDINATOR
Joe Greco | joe@grecopublishing.com
SENIOR CONTRIBUTING EDITOR
Chasidy Rae Sisk | chasidy@grecopublishing.com STAFF
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.
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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
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There are many times in a person’s life when they ask themselves, “How did I get here in my professional life, and why do I continue to do what I do for a living?”
In many cases, these two questions are asked more frequently in the collision repair industry. The frustration that comes with running a highly technical and ever-changing repair business, while maneuvering through regulations and constraints imposed by overbearing thirdparty payees, is daunting. It is no wonder that an increasing number of collision repairers are choosing to throw in the towel.
The collision repair industry is no longer a place where one can work on cars simply because “I like to work with my hands” and consider it a hobby while helping friends out of a jam. This has not been the case for quite some time, and as technology has changed, many have been forced to keep up or step aside. No longer is a repair considered safe just because it looks cosmetically correct when the customer picks up their repaired vehicle. Unfortunately, far too many repairers and insurers do not understand this fact. Too many repairers who have not taken the initiative to keep pace with changes now find themselves so far behind that they have little hope of ever catching up. At the same time, far too many insurers are solely focused on their bottom line and fail to understand what it takes to properly repair a vehicle. Or worse yet, they are so focused on the bottom line that they simply don’t care about anything else.
So, why did you decide to get into the collision repair industry? Was it just to eke out a living, or was it to thrive by providing an essential service while supporting yourself and your family? If you are a shop owner, did you open your independent business and work hard to make a success of it, just to have someone
Why Did You?
else try to dictate how you should fix vehicles and at what price, while you take on ALL the liability? Are you a true entrepreneur or someone’s “lackey”? Do you want to be proud of the work you and your technicians produce, or are you someone who constantly looks over your shoulder, hoping that a previous repair doesn’t come back to haunt you as a “redo” or, worse yet, become part of a multimillion-dollar lawsuit due to a faulty repair? It has been proven that the attitude of “That’s all the insurance company would allow for the repair” or “I fixed it the way they told me to” is NO EXCUSE!
For those who have answered the question “Why do you?” with, “Because I want to be proud of what my business and my staff produce and represent to my customers and my community,” my hat is off to you. You understand what it means to be in business for the right reasons. You understand what it means to be professional and uncompromising when it comes to quality and, above all else, SAFETY! You are a collision repairer not only because you “like to work on cars” but because you have a passion – a passion that many in this great industry hold dear. A passion that many are NOT willing to
let insurers quash. It is a passion and belief in yourself that no matter what, you are going to do the right thing.
There is a Hawaiian word for this passion: “Kina’ole.” Kina’ole means to do the right thing, the right way, at the right time, for the right reason. It is a concept that long-time shop owner March Taylor lived by. He valued the safety of his customers, the well-being of his customers and his community. Today, I am happy to say that I see this spirit living on in many shops here in Massachusetts and across the country. These shops and their owners are taking a stand against the trend of “going along to get along.” They are involving their customers in the repair and settlement process. They are guaranteeing that they will not have to live in constant fear of a “comeback” for faulty or unsafe repairs. They are using authorization forms and proper documentation when agreeing to make repairs for their customers. They have drawn a line in the sand and will no longer put themselves, their businesses or their employees in jeopardy.
This means that they are doing the right repairs, the right way, at the right time and for the right reason, as the
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AASP/MA Ready to Thrive in ‘25 with New Leadership
Just mere weeks into the new year, and there’s already been loads of good energy surrounding the Massachusetts auto body association.
AASP/MA closed out 2024 with a big win! The year ended with news that an Auto Body Labor Rate Advisory Board will be established with one purpose and one purpose only – to study, review and recommend a fair and reasonable labor reimbursement rate. (See the January issue of New England Automotive Report for more details at grecopublishing.com/near0125coverstory.)
While this positive news began to spread throughout the Commonwealth auto body community, AASP/MA was in the midst of conducting its annual election for the 2025-2026 term, which resulted in new leadership and new synergy for the coming year and then some.
Matthew Ciaschini (Full Tilt Auto Body; West Hatfield) was elected to serve as president of the Alliance, while his predecessor Kevin Gallerani (Cape Auto Body; Plymouth) has committed to remain active with AASP/MA as immediate past president.
Doug Begin (Vendetti Motors; Franklin), an active member of the Alliance for the past few years, has been elected to serve as vice president.
“I really look forward to working with Matt and Executive Director Lucky Papageorg,” shares Begin. “We made some great strides in 2024, and it’s time to keep up the pressure into 2025 and beyond. If we keep moving forward, we can make some great headway in Massachusetts.” Adhering to the idea of “if you want to become wealthy, study what wealthy people do,” Begin seeks to study other associations that have also effected to create positive change on behalf of body shops and consumers for inspiration to help the association move forward with its ongoing efforts to improve the industry in the Commonwealth.
The membership re-elected Dana Snowdale (D&S Auto Works; Abington) as treasurer, Don Dowling (Marblehead Collision;
Marblehead) as secretary, Brian Bernard (Total Care Accident Repair; Raynham) as legislative chairman and Dan Wenzel (Wenzel’s Auto Body; Pocasset) as collision chairman.
The election resulted in the return of many long-serving Board members and the addition of some newcomers. Most notably, the membership welcomed back Rick Starbard (Rick’s Auto Collision; Revere) to serve as a director. Starbard has decades of experience with the auto body industry in Massachusetts and has held leadership roles in the past with the former Massachusetts Auto Body Association and the former AASP National Board; most recently, he served on the Auto Damage Appraisers Licensing Board (ADALB).
“I look forward to getting involved with the association again, especially since I’ve been off the ADALB,” expresses Starbard. “I feel a bit out of the loop since I have not been as involved as I had been in the past, because I was involved in local politics, which took up a lot of my time. But now I’ve put that behind me, and I look forward to reconnecting with everyone and getting involved.
“When guys like myself and [retired Board member] Kevin Kyes got involved, we were the kids then,” he recalls. “Now, it’s the other way around, and the shoe is on the other foot. We got younger guys coming up, and it’s great to see some secondgeneration shop owners like Kevin Gallerani and Don Dowling getting involved, looking to grow their businesses and helping grow the industry. It’ll be fun to be back at it.”
Brian Stone (Anchor Collision; Hyannis) is eager to return for another term as a director. Stone, who also serves as vice president of collision operations for the Balise Auto Group, looks forward to working with the fellow Board members and their new president. “Matt and I share a lot of the same goals when it comes to quality repairs, holding yourself accountable, doing what’s right for the customer and getting paid the rate we should be getting paid for fixing these vehicles.”
Working toward improving the labor reimbursement rate is an absolute shared goal. His work with the Balise group – which has shops in Massachusetts, Connecticut, and Rhode Island – has allowed him to see the different landscapes in neighboring states, and he wants to see that change. “My shop in Springfield is literally 15 minutes away from Connecticut, and they have a totally different reimbursement rate, and it’s the same with Rhode Island. We have not had a voice in this matter like they have had in other states. We have one of the highest costs of living in the country and the lowest labor rate. I want to work to make things better.”
AASP/MA is divided into four zones representing different parts of the state. The following were elected to serve as Directors
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continued from pg. 8
answer to the question “Why do you?” They make every effort to get the insurer to meet their obligations under the indemnification policy sold to the vehicle owner. They do NOT succumb to, “The shops on our list would do it for what we wrote.” They explain to the vehicle owner the responsibilities the insurer is attempting to sidestep in their estimating and payment process. They arm the vehicle owner with the needed information to pursue reimbursement, should they choose to do so, once they have paid the shop for the fair and reasonable cost of repair. Most importantly, they have protected themselves from the potential liability of a faulty repair just to save the insurer money.
As we move through 2025, and more shops move into “thrive” mode or decide they are no longer willing to do the right thing, the outlook will continue to improve for those businesses that believe in and practice Kina’ole. If you are looking to “Thrive in ‘25” and are not yet a member of AASP/MA, NOW is the time to join. See the application on page 7 or go to the aaspma.org website and click on the “JOIN NOW” button on the homepage.
Do it now – you do not want to be asking yourself, “Why didn’t I?” in the future.
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org
[LOCAL] NEWS
continued from pg. 12
and Affiliate Directors:
Zone 1 (Southshore)
Directors:
Mike Penacho (Mike’s Auto Body; Fall River)
Brian Stone (Anchor Collision; Hyannis)
Jimmy Kelsey (Kelsey’s Auto Body; South Chatham)
Affiliate Directors:
John Studer (Whitman Body Works; Whitman)
Russell Oagles (Five Star Collision; Westport)
CJ Ellis (John’s Collision; Hyannis)
Zone 2 (Midstate)
Directors:
Brenda Lacaire (Steve’s Collision Center; Sturbridge)
Nick Franchi (Franchi Brothers Auto Body; Worcester)
Ray Belsito (Arnie’s Body Shop; Charlton)
Affiliate Director:
Tom Lucas (Wagner Certified Collision Center; Worcester
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Don Kennett Delivers a Personal Touch in an Increasingly Corporate World
The world of collision repair constantly changes in every imaginable way, and while Don Kennett Inc. has certainly undergone its fair share of shifts in recent years, one thing remains consistent – this family-owned-and-operated automotive paint and body supply company offers a personal touch.
“The New England market has changed drastically over the past four years,” Vice President Bob Levy notes. “Private equity companies have bought out many businesses like ours, and only a handful of jobbers are left in this area. Although much of the industry’s landscape has changed – with changes in repair quality, technicians, consolidation and shops closing – most Northeast shops are still independently run. We want to meet their needs, so we do our best to make decisions within 24 hours when a customer comes to us with a new initiative or concern.”
Don Kennett Inc. has seen some internal changes since the pandemic as well. In business since 1953, the supplier still operates from four locations (in Lawrence, North Chelmsford and Wakefield, as well as in Manchester, NH), but the team has grown to over 40 industry professionals, including two full-time spray technicians who support the seven-person sales team. After Levy’s partner, Dan Takesian, passed away in 2020, Dan’s son Paul took on the title of vice president as well and became Levy’s partner. Levy’s son Michael is now in charge of the sales team and business
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development and training to teach the shops on how to be more profitable. The office staff consists of Bob’s wife Lisa Levy, Paul’s wife Heather Takesian and Lori Debernado, Paul’s sister. “Both of our families are very involved in the daily operations of the business,” Levy shares.
That hands-on approach goes beyond merely supplying products. “We host in-house training opportunities with manufacturers to help shops get certified to use their products, of course, and with today’s vehicles becoming so sophisticated, it’s vital for shops to attend more technical training, but we also offer training related to shops’ profitability. Shops are suffering because they can’t figure out how to make money, and they aren’t going to survive if they aren’t profitable,” Levy says. “Insurance companies continue getting harder and harder to work with; they don’t want to pay what it takes to repair cars to their pre-accident condition. There are shops that work with them and shops that don’t. More shops are charging customers a co-pay to collect the difference, and some of them are successful, while others are not. Being out in the shops frequently allows us to see exactly what our customers need and pivot to address those needs.”
Another way the Don Kennett team maintains awareness of industry trends in order to better serve their clients’ needs is through its active support of AASP/MA as a Silver level sponsor in the association’s Vendor Affinity Program. “We’ve been involved with the association for at least 15 years – since it was MABA – as a way of demonstrating our support for our clients and our dedication to their success,” Levy reports. “Attending meetings and events allows us to keep a finger on the pulse of what’s going on in these shops so we can share ideas with our customers. It’s really important to be conscious of the industry’s changes and to be open to new perspectives to keep pace with the technological advancements. But it’s also vital for shops to have a forum like AASP/MA where they can learn from one another and collaboratively address the issues they’re all facing. When we work together, we strengthen this industry, and that’s the real value the association offers.”
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Peering through the GlassNew England ’s
Fighting with insurers, insufficient reimbursement rates, intimidating technology – all things a body shop owner in Massachusetts has to contend with. It can be isolating, leading one to think they are a lone soldier in combat. But that’s not the case at all. No two shops are exactly the same, but there are many shared struggles and concerns.
The New England Automotive Report 2024 Industry Survey gave shops the chance to speak out about what concerns them most and peek into the window of the collision shops down the street, three towns over or in another part of the state to see what they have to contend with.
Check out the following pages to get a feel for the state of the industry here in the Commonwealth by reading this year’s survey results. A big thank you to all the shops who took the time to participate in this survey. We hope that you find value and insight from this information.
How long have you been in business?
1-5 years: 3%
6-10 years: 3%
More than 10 years: 94%
Are you on a referral or program?
Referral: 8%
Program: 3%
Both: 8%
No: 81%
If you selected “yes” to being on a referral, how many referrals are you on?
1-5: 57%
6-10: 42%
More than 10: 0%
If you selected “yes” to being on a program, how many programs are you on?
1-5: 100%
6-10: 0%
More than 10: 0%
It appears that more and more body shops are severing their ties to insurance companies, according to this year’s survey results, with 81 percent reporting they are not involved with any referral or programs. When this survey debuted four years ago, that number was only at 52 percent. This increase illustrates the changes taking place in the Commonwealth as body shop professionals have been vocalizing the benefits of working independently and taking the time to educate themselves and consumers as they “break free” from contracts.
How many full-time employees do you have, including yourself?
1-5: 42%
6-10: 29%
11-20: 18%
More than 20: 11%
How many part-time employees do you have?
1-5: 92%
6-10: 3%
11-20: 3%
More than 20: 2%
What is the age of your oldest employee?
30-40: 3%
41-50: 8%
Over 50: 89%
What is the age of your youngest employee?
18-25: 55%
26-35: 21%
Over 35: 24%
It’s surely not a shock that the average body shop employee is aging out as this year’s results show. The percentage of shops with employees over the age of 50 have ranged from 89 to 94 over the past few years. Even the youngest employees aren’t getting any younger. When the survey made its debut in 2021, 64 percent of shops surveyed reported having employees between the ages of 18-25. That figure dropped all the way down to 46 percent last year yet climbed back up to 55 percent in 2024. Perhaps the jump is a sign that things are improving in the way the industry recruits new people; however, issues with finding new employees remain a hardship for many collision repair businesses.
Where do you look to hire new
employees?
Word of mouth/referrals: 60%
Online: 37%
Local vocational schools: 37%
Everywhere: 36%
Not searching: 13%
Finding good quality help continues to be a thorn in a shop owner’s side. Word of mouth/referrals remains the number one recruitment source for body shops. In 2023, 60 percent of respondents indicated continued on pg. 28
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they went online to find workers, yet that number plummeted down to 37 percent this year, an indication that people are thinking outside the box more. Some respondents are getting the word out by social networking and making good use of networking, including talking with “salespeople who come in the door” as one survey respondent stated.
What is the annual salary of your lowest-level employee?
Less than $25,000: 16%
$25,000-$35,000: 24%
$35,001-$45,000: 31%
$45,001-$55,000: 13%
$55,001 or more: 16%
What is the annual salary of your highest-level employee?
Less than $70,000: 11%
$70,000-$85,000: 8%
$85,001-$99,999: 21%
$100,000 or more: 60%
Lowest level employees making
$45,000 or less is unchanged from last year; however, this year’s survey results show a 12 percent increase in how many employees make $100,000 or more from last year. This year’s results show a steady decline in employees making between $70,000$85,000 with only eight percent reporting salaries at this level down from 19 percent in 2023.
Are you familiar with AASP/MA’s legislative agenda for the current session?
Yes: 100 %
No: 0
Do you feel that your customers care about the issues facing the collision repair industry?
Yes: 35%
No: 65%
Effectively communicating with consumers may be working as 35 percent of respondents believe customers care about what is going on in this industry, a significant increase from last year’s 26 percent.
Many truly believe in the benefits of educating their customers:
“Labor rates are low and suppressed by insurance companies. We educate every customer, and we post our labor rate.”
“Educate and advocate [for] customers. Make calls on their behalf.”
“[Customers] appreciate learning.”
“We educate, and we show them.”
“We spend a lot of time educating the consumers.”
While many feel strongly about playing a role in educating consumers, others were less enthusiastic about taking the time for many reasons.
“I feel they are unaware.”
“People think they should not have to deal with anything and that insurance companies should just pay the invoice. They can’t be bothered with calling and fighting for reimbursement.”
“Some are sympathetic; others have their own problems.”
As an industry, how do you think we can better educate customers?
Television/radio commercials: 54%
Social media campaigns: 77%
One-on-one conversations with the customer on-site: 58%
Office signage: 38%
Emails and letters sent from shops and the Alliance: 35%
By better educating shops so they can educate more customers: 65%
Shop owners believe there are many ways to reach consumers on the perplexing issues the industry faces; however, social
media campaigns and one-on-one interaction top the list.
Others offered some outside the box suggestions:
“Hire a PR firm to manage the messaging and create targeted campaigns.”
“Create a quick video from a lawyer about consumer protection laws, insurance policy/tricks and legal service.”
Do you balance-bill customers (charge a copay) when insurance reimbursement does not cover the entirety of your invoice?
Yes: 58% No: 42%
Once again, the majority of body shops who took this survey indicated they balancebill their customers, which is in line with the message the Alliance has been sending to shops throughout the Commonwealth; however, this figure reflects a four percent decrease from last year. This small change could mean that insurers are paying more toward repairs, or perhaps shops are doing a better job at writing complete estimates and documenting everything they write.
How
do you educate your current and potential customers?
The debut of this question resulted in a number of interesting responses with every single respondent indicating that verbal communication is the key factor:
“One-on-one conversations.”
“We just mention the rate the insurance company offers, and most customers get it. We keep them updated throughout the repair process on what is not being covered and why they must cover the difference.”
“Explain to them that their car is a
rolling computer.”
“We talk with them and tell them that it isn’t us; it’s them (insurance company) not paying.”
“We have phone calls and face-to-face conversations. We explain the importance of insisting upon following OEM procedures. We explain the potential problems created when a party other than the OEM dictates the repair plan.”
What do you think is the most pressing issue affecting shops today?
Labor reimbursement rate suppression continues to top the list for collision repairers in Massachusetts along with insurer interference/referrals and programs. Although this year’s survey showed a slight decrease in respondents indicating workforce shortage is an issue, the problem still plagues shops.
One respondent offered up vehicle complexity as a major concern, and another brought an interesting issue to light: “Unqualified shops doing work that they aren’t capable of and/or not getting compensated properly ruins it for the good shops that do everything correctly.”
Are you currently certified/ recognized by an OEM to perform collision repairs?
Yes: 31%
No, but I’m working toward it: 35% No, and I do not plan to become certified/ recognized: 34%
If you answered that you ARE certified/recognized by one or more OEMs, please list them below.
Out of all the motor vehicle manufacturers listed, more than two-thirds of respondents are certified in Honda/Acura. Hyundai, Kia and Nissan were also popular choices for OEM certification. Others listed General Motors, Ford, Subaru, FCA, Lincoln, Mazda, Audi/Porsche/Volkswagen and Volvo.
OEMs, what is your incentive to continue with the program?
If you answered that you ARE certified/recognized by one or more
Every shop owner has his or her own reasons for how they do business, but those who answered the survey believe OEM certifications improve their shop’s reputation. Enhanced access to OEM procedures is another major reason shops chose to make these investments. One respondent relays that OEM certification “provides us with leverage when enlightening appraisers about required processes and procedures.”
How would you rate your current state of business?
1-3: 15%
4-6: 23%
7-8: 31%
9-10: 31%
A first since the survey debuted, 31 percent rated their state of business at the highest level. This number has nearly doubled since 2022, a good sign that things are improving for collision repair businesses.
How does your shop handle ADAS calibrations?
Repair In-House: 15%
Sublet repairs to dealership: 31%
Sublet repairs to ADAS calibration center: 54%
If you calibrate ADAS in-house, who performs the calibrations?
Shop owner: 23%
Repair planner: 0%
Dedicated calibration tech(s): 62%
Whoever works on the repair: 15%
Motor vehicle technology advancing at rapid rates have made ADAS a household name and a resident in just about every single car manufactured today. Per CCC Intelligent Solutions’ 2024 Q1 Crash Course Report (cccis.com/reports/ crash-course-2024/q1), 95 percent of light duty vehicles manufacturers in 2023 came equipped with automatic emergency braking. Not too long ago, shops may have
believed ADAS calibration needs would be few and far between, but that quickly did not become the case. Some shops jumped on the bandwagon early and found ADAS calibrations to be its own revenue source. (See the feature in the November 2024 issue of New England Automotive Report available at grecopublishing.com/ near1124coverstory).
The debut of this question revealed that 15 percent are already performing ADAS calibrations in-house, while the majority is still subletting the work to dealerships or ADAS calibration centers.
Clearly, training in this area is key to performing these calibrations correctly, so it’s reassuring to see 62 percent of respondents have a designated staff member(s) devoted to performing this work.
Over the past year, have your sales increased, decreased or stayed the same?
Increased: 42%
Decreased: 23%
Stayed the same: 35%
These numbers have certainly fluctuated over the years. This survey first debuted when body shop businesses were just trying to make a comeback from the major hit the pandemic swung at them. Each year since, the majority of shops have indicated an increase in sales or no change from the prior year; however, this year, that number falls below 80 percent for the first time since 2021.
What are you doing to combat rising P&M costs?
Fighting to get reimbursed for paint and material costs has been a major sore spot for collision repairers – and it’s only gotten worse over the years thanks to increasing costs and tighter insurer purse strings.
While some respondents rely on vendor invoicing software, others indicated the use of paint calculators or Mitchell paint sheets. One survey taker noted, “Charge paint sheet based on color, not hourly rates.” Another said, “Provide actual invoices for P&M paid and used on each job.”
One shop owner advised, “Insist upon proper compensation from the insurance carrier or charge the client for providing costs if denied by the carrier,” while another indicated his business is considering charging the customer for P&M shortpays. One respondent believes getting reimbursement is not in the cards. “Nothing. It’s set by the Mitchell guide and the insurance company.”
How would you define the “future” of collision repair?
A slew of interesting answers came in from respondents who pointed to a number of concerns as they look toward the “future” of the industry. Some forecast a decreased need for the trade, claiming “fewer cars to be fixed. More cars will be forced to go to the dealer.”
Some other predictions:
“There will be fewer shops, especially independent ones. All will specialize.”
“Quality will go down. Even if we finally get a fair reimbursement rate, we will not have people to do the work. The advancement of technology is also making it more difficult to repair vehicles.”
“Dominated by insurance steering.”
“It’s a bleak race to the bottom.”
Many maintain a positive outlook as one person indicated, seeing a future that is “very positive if we can stay educated and maintain alliances with like-minded collision repairers. Educated collision repair facilities are becoming a commodity.”
Another believes it’s “survivable” as long as there is change for small body shops, else
“it will eventually be dealerships with long waits for body work.”
Ultimately, repairers want things to improve. Perhaps the most telling answer was the respondent who simply stated, “Things have to change.”
What are your biggest concerns about Artificial Intelligence (AI)?
Talk to the average person on the street, and they are likely to admit they are afraid AI will take jobs away from them. It’s a concern shared by most industries, collision repair included. However, repairers keeping up with the industry via the Collision Industry Conference or SEMA learn from presenters about the many AI-related tools in development designed to help body shops with customer service, appointment set up and then some, but that doesn’t easily erase concerns overall as answers to this debut question revealed. While some admitted to knowing very little about AI or have “no care in the world,” others are concerned about what the insurance industry may use it for.
“If insurers use AI, it will increase the lack of ability to negotiate.”
“AI could be used wrong by insurance companies.”
“It’s already hard enough to speak to insurance companies via the phone. AI will just add to that issue. It will be more difficult to get issues resolved.”
“The progression of AI is happening at a faster rate than collision repairers can educate for.”
“Insurance companies have big pockets to influence dialogue.”
In your experience, which insurer do you find the most difficult to deal with, and why?
This question gave shops the opportunity to call out their insurance foes, and most took full advantage of that, naming a total of 12 insurance companies they find most difficult to work with. Topping the list was MAPFRE, Progressive and Commerce with State Farm, Allstate and USAA trailing behind, but not by much.
One shop cited MAPFRE for “heavy steering,” and another survey taker called out the insurer for refusing to pay for “parts, procedures, and P&M, which all other companies pay for.”
“MAPFRE is way out in left field,” wrote one survey taker.
One shop said Progressive “is suffering from incompetence and low staff levels.”
Another shop called out Progressive “because of the cycle time” and Commerce for “rejecting labor rates and costs.” Another said, “Commerce does not negotiate at all.”
One respondent called out Progressive, along with GEICO and State Farm for “demanding aftermarket parts.”
Another came forward simply with, “THEY ALL SUCK!”
What is the current hourly labor rate you are being reimbursed by insurers?
Less than $40: 4%
$40-$59: 85%
$60-$79: 7%
$80 or more: 4%
What
do you think your labor rate should be?
Less than $60: 0%
$60-$79: 27%
$80-$99: 61%
$100 or more: 12%
Despite some small increases by a few insurance companies, Massachusetts continues to be burdened by a rate so low and insufficient that it’s put some shops completely out of business. This severely insufficient rate of $40 per hour (the
lowest in the entire nation) has plagued the Commonwealth for decades, although change is on the way.
Big news came out in December when this survey was being conducted that an Auto Body Labor Rate Advisory Board will be established to study and review the labor reimbursement rate in order to make recommendations to the Division of Insurance for a fair and equitable labor rate. (See the January 2025 issue of New England Automotive Report for more at grecopublishing.com/ near0125coverstory) As these responses reveal, change is absolutely needed as 85 percent of repair facilities are being reimbursed at less than $60 per hour, and four percent are still getting paid less than $40.
How do you promote your business to current and potential customers?
Word of mouth/referral/reputation: 96%
Internet (social media/website/Google/ Yelp): 65%
Local advertising (cable/radio/community involvement): 42%
None: 0%
Shops continue to believe it’s word of mouth and referrals that are the main source for bringing customers to their bays with social media and local advertising also being ideal.
How do you feel social media and digital platforms like Yelp have impacted your business?
A positive impact: 62%
A negative impact: 19%
A mix of both: 15%
No impact: 4%
Do you feel that your shop is prepared to repair electric vehicles (EVs)? Why or why not?
Yes, we are prepared: 43%
No, we are not: 57%
These numbers have steadily changed over the past few years. Initially, nearly two-thirds felt they were not prepared to
fix these vehicles, and now, that number has fallen down to 57 percent as more body shops are starting to educate themselves about the EV revolution.
Have you and/or your employees undergone any training in the past year?
Yes: 62%
No: 38%
Part of being successful in such an everchanging industry is keeping up with the requirements for fixing cars correctly. Most of the respondents indicated they invested their training in I-CAR Gold or Platinum status and in ADAS calibration.
What type of training does your shop need more of?
Some survey takers unveiled they want to prepare for the future, listing EV and ADAS training needs, while others stressed the importance of OEM training. One respondent pointed out how one may have 30 years of experience, but that “does not prepare for us the cars of today, which is why OEM procedures are an absolute necessity.”
Outside of training, how much time do you invest in keeping up with industry trends?
Some respondents feel very strongly about staying informed via AASP/MA and also nationally with the Society of Collision Repair Specialists and 20 groups. One survey taker invests roughly 20 hours per week toward news and updates. Some indicated they spend just a few hours a week reading industry publications, while others admit they try to put the time in but need to do more. Then there are some who are ready to hang up their tools when it comes to the industry, claiming “At this point, I don’t care about industry trends. I just want to close my shop and get out of this.”
If you could change anything about this industry, what would it be?
Many areas were covered throughout the survey, including technology, technician shortages and labor reimbursement rates, so it’s really no surprise that these are the areas
collision repairers believe need the most work. In fact, as indicated by the responses, they are all intertwined.
“Labor rate, and we need vocational schools to teach the correct auto body curriculum to get more kids into the industry.”
“Everything, starting with fair wages that will entice future talented people to come into the industry.”
“The compensation for the technicians. I feel they should be getting paid double what they are. This would increase the number of technicians and the quality of the repair. It would require a fair labor rate. If auto body shops could compete financially with other trades, the industry as a whole would benefit.”
For one survey taker, it all comes down to education on the issues.
“I would insist on education requirements for all collision repairers. This would increase the safety and quality of the repair. Educated repairers would insist upon a fair and reasonable labor rate. Currently, the masses of uneducated repairers contract with the insurers who require zero education to make them ‘preferred.’ This is the core of our problem. Education requirements would weed out the unprofessional repairers. Insurers would have much less success convincing educated repairers to accept a suppressed labor rate. The consumer would be safer and collision repairers would be fairly compensated.”
Closing
The industry continues to evolve. Vehicle technology is doing the same. In fact, body shops are evolving as well. As the survey indicates, change is needed, change is happening, and the shops that plan to stick around are making changes to keep up with it all.
No shop is all alone in the fight. In fact, it’s been proven that strength in numbers can lead to wins. We hope this year’s survey leaves you with some guidance and hope toward what is to come down the pike and what may be needed when they happen. There will always be changes, especially in this industry. The important thing to remember is that everyone is in it together.
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Clearing the Air: The Truth About Storage Fees and the Puopolo Decision
A Massachusetts insurance company has been spreading misleading information about what they have to pay for storage fees at body shops. They claim that the law lets them ignore the posted daily rates at independent shops and only pay $35 per day. This claim is based on the court case Puopolo v. Commerce Insurance Company, but the way they describe the case leaves out important facts.
In the Puopolo case, the insurer paid the full storage fees to release totaled vehicles but then deducted money from their customers’ settlements to cover what they considered “too high” fees. The customers argued that this was unfair and went against their insurance contracts. The court sided with the insurer, but only because the customers didn’t bring strong evidence to prove that the shop’s higher storage fees were reasonable.
The real question is whether insurers must pay the daily rate posted by a shop or if they can choose their own rate – usually $35 per day – and deduct the rest from the payout.
This article (see bit.ly/AgencyChecklistnewruling) makes it seem like the law fully supports insurers, but that’s not true. The court didn’t say that body shops’ posted rates are automatically unreasonable or that insurers can always pay less. Instead, the case
showed that having solid proof matters in these disputes.
Independent body shops and their customers deserve the truth. This decision doesn’t stop shops from charging fair market rates for storage. Instead of taking money from their customers’ settlements, insurers should focus on speeding up the claims process and getting vehicles moved quickly to keep storage fees low. That’s a solution that helps everyone.
The aforementioned article about the Puopolo case makes several claims that favor insurers and downplay the challenges that shops and policyholders face. He presents the court’s decision as though insurers are free to pay $35 per day for storage fees no matter what the shop’s posted rate is. But that doesn’t tell the full story and could mislead shops and customers into thinking they have no choice but to accept the insurer’s rate.
The article suggests that the Puopolo ruling gave insurers the right to ignore higher storage rates and stick to $35 per day, as if it’s a universal rule. But the court didn’t make a blanket decision about storage fees. The ruling was based on the fact that the plaintiffs didn’t provide evidence to support the shop’s higher rates. The court didn’t say $35 was the legal limit for all cases – it’s a figure pulled from non-consensual towing regulations that don’t
apply to agreements between body shops and customers.
The article also implies that independent shops overcharge customers because their rates are higher than preferred shops. But preferred shops can afford to charge less because they get steady business from insurers. Independent shops, which don’t rely on insurer referrals, need fair rates to cover their real costs, like rent, staff and insurance, while still giving customers a choice in where to bring their vehicle.
Finally, the article frames insurer deductions as simply “recovering” overpayments to shops with high fees. This makes it seem like insurers are being reasonable. But when insurers deduct storage fees from a customer’s payout, they’re really taking money out of their policyholder’s pocket. The customer ends up paying the price, even though they had no control over how long their vehicle stayed at the shop or how quickly the insurer handled the claim.
The article leaves out key details and presents only the insurer’s side. The court didn’t say $35 is the only fair rate, and independent shops aren’t “overcharging” when they post rates that match their real costs. Insurers should focus on making the claims
process smoother instead of shifting costs to policyholders or steering them toward preferred shops.
Insurers refusing to pay posted storage rates and sticking to a $35-per-day cap may seem fair at first glance, but it causes serious problems for consumers and independent shops. When insurers deduct storage fees from an actual cash value (ACV) payout, it leaves policyholders with less money to replace their totaled vehicles. Many customers don’t know that choosing an independent shop could lead to these cuts, which creates confusion and financial stress.
Massachusetts law protects a consumer’s right to choose their repair shop, but insurers’ deductions feel like a punishment for making that choice. This kind of “pick our shop or pay the price” approach pressures customers into using preferred shops, limiting their options.
For independent shops, this practice tilts the playing field in favor of preferred shops, which can offer lower rates because they continued on pg. 36
get steady business from insurers. Independent shops, meanwhile, have to charge fair market rates to stay in business. When insurers refuse to pay those rates, shops either have to absorb the loss or face delays while trying to fight for what they’re owed. This can cause serious cash flow problems that make it hard to cover expenses like rent and payroll.
Insurers’ cost-cutting tactics shift the financial burden onto their customers and the independent shops that serve them. Instead of helping their policyholders during tough times, they’re making things harder for them.
The real issue isn’t storage fees – it’s delays in the claims process. Most high storage fees build up because insurers take too long to declare vehicles total losses or arrange for them to be moved. The longer it takes, the more storage fees pile up. If insurers acted faster, they could avoid these fees without taking money from their customers.
Insurers have several tools they can use to move vehicles sooner without making shops give up their right to payment. By law, shops have a lien on vehicles until they’re paid, but insurers can work around that by posting a bond, paying the fee under protest or getting a title transfer. These options protect shops while letting insurers remove vehicles quickly.
These steps help everyone: shops get paid, customers receive faster settlements and insurers avoid long-term storage fees without punishing their policyholders. Clear communication with shops and customers about the claims process can also prevent disputes and reduce the time a vehicle sits in storage because of miscommunication or delays.
Instead of blaming shops, insurers should focus on handling claims faster and working with shops to avoid costly delays.
The Puopolo decision doesn’t create a rule that caps storage fees at $35 per day. The ruling was unpublished, meaning it’s not binding in future cases, and it only applied to the facts presented – specifically, that the plaintiffs didn’t bring enough evidence to show that their shop’s rates were reasonable.
The $35 rate that insurers rely on comes from regulations for non-consensual towing, where the vehicle owner hasn’t agreed to or been notified of the fees. Independent shops, by contrast, must post their rates clearly. When a customer chooses a shop, they agree to those rates upfront. Insurers can’t apply a non-consensual rate to a shop that follows the law and discloses its fees.
continued from pg. 16
Zone 3 (Western)
Directors:
Gary Cloutier (Cloots Auto Body; Westfield)
Andrew Potter (North Amherst Motors; North Amherst)
McColl Rhodes (Nesco Sales; Bondsville)
Affiliate Directors:
Sarah Mazzaferro (Custom Auto Body; East Longmeadow)
Scott Thompson (Balise Collision Center; W. Springfield)
Mike Nawrocki (Geno’s Auto Service; Chicopee)
Rich Tanchyk (VIVE Collision; Holyoke)
Zone 4 (Boston/Northshore)
Directors:
Jeff White (North Andover Auto Body; North Andover)
JR Force (Repairs Unlimited; Georgetown)
Rick Starbard (Rick’s Auto Collision; Revere)
Affiliate Directors:
Dean Luther (Carlisle Auto Body; Carlisle)
Jayce Mitchell (Mitchell’s Auto Body; Tewksbury)
Gregg Tanguay (Marshall’s Auto Body Experts; Billerica)
Scott Varney (Westford Collision; Westford)
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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.
626 E. Elizabeth Ave., Linden, NJ 07036 Phone: (908) 925-6133 Fax: (908) 925-4344 414-416 Madison Ave., Paterson, NJ 07524 Phone: (973) 279-8300
Independent shops should feel hopeful. The court’s decision was based on weak evidence, not a blanket endorsement of insurer practices. Shops that keep good records, post their rates and explain them clearly can charge fair market rates that reflect their true costs.
By staying transparent, standing up for their rights and joining forces through trade groups, shops can push back against unfair insurer practices. Insurers should stop cutting payouts and focus on doing their part to keep fees down by acting quickly and fairly. Shops and their customers deserve nothing less.
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
