New England Automotive Report March 2016

Serving the New England Collision and Mechanical Repair Industry March 2016 U.S.A. $5.95

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

www.grecopublishing.com

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New England Automotive Report

March 2016 • Volume 14, No. 3

CONTENTS

DEPARTMENTS PRESIDENT’S MESSAGE by Molly Brodeur 8 | Be a Part of Our Team LOCAL NEWS by Joel Gausten 20 | ADALB Tackles Biggest Agenda in Years NATIONAL NEWS by Jacquelyn Bauman 24 | Seize Education at NORTHEAST® 2016 26 | NORTHEAST Schedule of Events VENDOR SPOTLIGHT by Jacquelyn Bauman 37 | Service above All: BMW of Stratham LEGAL PERSPECTIVE by James A. Castleman, Esq. 41 | Is the Labor Rate Negotiable?

TOOLING & EQUIPMENT by Jacquelyn Bauman 47 | “Kool Tools” at CIC Spotlight What’s New TECH CORNER by Jacquelyn Bauman 53 | Real Money for Real Work: Are You Using the DEG?

COVER STORY 30 | INVESTING IN YOUR SUCCESS:

ALSO THIS ISSUE

WHY AASP/MA MEMBERSHIP IS MEANINGFUL

7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 7 | SPECIAL ANNOUNCEMENT: 2016 AASP/MA VOCATIONAL GRANTS 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 14 | AASP/MA SPONSORS 15 | AASP/MA PLANNED YEAR 17 | STATEWIDE MEETING ANNOUNCEMENT 37 | IN MEMORIAM: DAVID ELIE 57 | AASP/MA MEMBERSHIP APPLICATION 58 | INDEX OF ADVERTISERS New England Automotive Report

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AUT M TIVE STAFF PUBLISHER

ART DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

DIRECTOR OF SALES

MANAGING EDITOR

Alicia Figurelli (alicia@grecopublishing.com)

Jacquelyn Bauman (jacquelyn@grecopublishing.com)

EDITOR

PRODUCTION

Joel Gausten (tgpjoel@verizon.net)

Donna Greco (donna@grecopublishing.com)

SPECIAL ANNOUNCEMENT: 2016 AASP/MA Vocational Grants

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2016 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE COMMITTEE PRESIDENT

For 2016, AASP/MA is revising its Vocational Grant program to now make the funds available to Massachusetts vocational schools that wish to send auto body/collision repair students to the SkillsUSA National Leadership & Skills Conference in Louisville, KY this June. The event is for those students who win the SkillsUSA State Conference this spring. Raised at the AASP/MA MidState BBQ last September, the 2016 AASP/MA Vocational Grant funds will be used to help with the costs of hotel, airfare and other travel expenses to and from the National Leadership & Skills Conference. Massachusetts vocational schools can apply directly to AASP/MA for the Grant. For additional information, please contact AASP/MA at (617) 574-0741.

Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

in Massachusetts March 2, 2016

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR

Understanding & Preventing Refinish Defects

March 8, 2016

Rick Starbard

AASP/MA DIRECTORS Alex Falzone

Vehicle Technology & Trends 2016

Northeast Metropolitan Regional Vocational School, Wakefield, MA

Wheel Alignment & Diagnostic Angles

Kevin Kyes Michael Penacho

March 10, 2016

Darlene Andrade Tom Ricci

Squeeze-Type Resistance Spot Welding

Ray Belsito, Jr. Peter Langone

March 16, 2016

Blueprinting Process & Damage Discovery AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

WWW.AASPMA.ORG

March 22, 2016

Advanced Steering & Suspension Systems Damage Analysis All classes held at Fuller Auto Body, Auburn, MA (unless otherwise noted) For more information, visit i-car.com New England Automotive Report

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PRESIDENT’S MESSAGE

BE A PART OF OUR TEAM! MOLLY BRODEUR

One flip through any issue of New England Automotive Report or a glance at AASP/MA’s website (aaspma.org) will show you that our association is more active than ever before. Between a hefty legislative agenda, upcoming meetings with policymakers and a ton of informative and memberoriented educational sessions and events in the works, the association is on the front lines, fighting for our industry.

But we can’t do any of this without you.

For many, many years, AASP/MA carried out our strategies in large part due to the voluntary support from our Board and committee members. These days, we have the benefit of a true executive team in Lynch Associates, who have succeeded in bringing AASP/MA to the table with insurers, putting us in front of policymakers and making changes at the State House. And that’s not to say we still don’t have a huge amount of support from volunteers – our Board works tirelessly to further our goals. But it’s important to remember that they are also business owners with families and personal lives of their own on top of their responsibilities at AASP/MA. Our executive team helps to supplement the hard work being done by our Board; their work behind the scenes allows us to continue to build

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momentum and advance our goals on a consistent basis.

Without the support and assistance that membership dues provide, we wouldn’t be able to achieve nearly as much as we do to help further the industry, and we certainly wouldn’t have the means to fund a full-time paid staff to work on our behalf. (That would mean less activity on Beacon Hill, and fewer victories for repairers in Massachusetts.)

Our incredibly generous sponsors already do so much to help us accomplish our goals; we need the input, participation and support of our members to help further our initiatives.

Your support can come in so many forms. Don’t think that you must attend every single function we put on, or that you’ll be expected to storm Boston with every legislative push the association sponsors. We would absolutely love it if you did, but rest assured that there is a place for every level of support out there, even if you’re the kind of person who is content to write a check to the association and then watch us take the ball and run with it.

If you do want to become more involved and active, we’d love to have that discussion with you! Please reach out to Executive Director Jillian Zywien at (617) 574-0741 or jzywien@aaspma.org for more information. We’re developing new things all the time to innovate our Board and help

connect us to more people than ever before.

Our recently implemented video conferencing feature will help to not only streamline our Board of Directors meetings moving forward, but will also create an opportunity for discussion like never before. We can chat with associations across the state, across the country or across the globe. The sky’s the limit.

The bottom line is that we’re looking to help make the industry a better place for all of us, and we are so appreciative of the huge amount of support already given to us by our members, vendors and association allies. We encourage you to continue whatever efforts you decide will be most beneficial to help us improve the collision repair field in Massachusetts and beyond. I assure you, it does make a difference!

Reminder: This is an election year for AASP/MA! A new slate of officers will be elected in the fall. If you are interested in joining the AASP/MA Board of Directors, please contact Jillian at (617) 574-0741 or jzywien@aaspma.org for more information.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA PRESIDENT MOLLY BRODEUR is the Chief Operating Officer of Al Brodeur's Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com.

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

ADALB UPDATES FOR 2016 JILLIAN ZYWIEN

Dear Members, Over the last several months, AASP/MA has been working with the Attorney General’s Office on the interpretation of the Open Meeting Law relative to the actions of the Auto Damage Appraiser Licensing Board (ADALB). AASP/MA filed a complaint against the Board for their interpretation of the Open Meeting Law in reference to providing notice and properly entering into Executive Session.

After careful review by the Attorney General, it was determined that the ADALB must provide written notice to individuals prior to entering into Executive Session, even during preliminary discussions. AASP/MA is thankful for the work done by the AG’s Office on this subject.

It is important to note that this was an issue left over from the previous members of the ADALB; at the June 2 meeting, the new Board members agreed that they should not go into Executive Session without providing notice. Ultimately, the new Board members yielded to the advice from Board counsel. It is important to make this clarification because the current Board was simply working through the actions of their previous members. The new ADALB members have voiced concerns several times relative to Executive Session, and this ruling will give them the support they need to ensure all future proceedings protect both the public and licensees.

This is a win on behalf of all appraisers in the Commonwealth. The transparency will give appraisers the opportunity to represent their interests before the Board and better understand violations of the law. We look forward to working with the ADALB under this improved level of communication.

Per the Governor’s Executive Order, a listening session has been scheduled for April 26 at 9:30am at the Division of Insurance in Boston. This is exciting news for shops, as the association is prepared to be a significant part of the conversation around possible regulation changes.

Before scheduling a listening session, the Board members wanted to outline their desired changes. Rick

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Starbard and Lyle Pare offered recommendations to the Board relative to 212 CMR, and were the only two Board members to do so. Rick offered some minor language changes with regard to appraisal timing and improving paint and materials language. He also asked the Board to review the Conflict of Interest Clause.

Lyle’s recommendation was to change the second sentence of paragraph 4 of 212 CMR 2.04(e) to read “labor time” instead of “labor.” He went on further to suggest that an appraiser does not have the expertise needed to negotiate a Labor Rate and that it should be left to the insurer. The discussion on the topic was not met with much support, but he did provide AASP/MA with a copy of his recommendation for our review.

Both members were asked by counsel to provide their changes to be featured on the listening session notice.

Lyle also suggested the Board issue an Advisory Ruling on accurately defining the role of the insurance appraiser relative to 212 CMR 2.04(e), as discussed at their previous meeting in December. He expressed that Plymouth Rock had been dealing with shops tearing down vehicles without proper approval from the insurer. He asked the Board to change the definition of the word “appraiser” and issue an Advisory Ruling doing so. AASP/MA stood to oppose the idea of using an Advisory Ruling to change the definition included in a regulation, as this action is not permitted. Ultimately, this initiative did not move forward.

Other items of note include a letter that was approved by the ADALB (and advocated for by AASP/MA on our members’ behalf) to be sent to the Rate Setting Board in reference to the standardized AIB policy.

Counsel also shared correspondence between the Division and the AIB prior to the plan’s approval on the very items to be addressed in the letter. The language referenced (as interpreted by the AIB) does not violate any regulations of the Board. Regardless of the Division’s correspondence, the affirmative voting Board members agreed to send the letter. As you are aware, AASP/MA has been working on this issue on behalf of our members and their consumers. We held a Statewide Meeting in January, providing members with information relative to the issues contained in the policy. The association is hosting our next Statewide

Meeting on March 22 to provide an update on progress made by the association for the new standard insurance policy set by the AIB. The ADALB also unanimously approved sending a letter (which was advocated for by AASP/MA on our members’ behalf) opposing HB 778, which seeks to abolish the ADALB. This legislation has been filed every year in an attempt to eliminate the Board. The association has also filed testimony in opposition to this bill. To learn more about our legislation, please visit our website at aaspma.org and click on the “Legislation” tab. Additionally, if you would like to support our initiatives, please consider donating to the AASP/MA PAC. Please note that we can only accept personal donations.

I encourage all of our members to visit the “Members Only” tab of the website and watch the ADALB videos. This Board governs licensed appraisers in the Commonwealth and represents the interest of all appraisers. They are making decisions that affect your business daily. Please take the time to inform yourself and get involved. If you are not part of the conversation, you cannot be a part of the change occurring in the industry today.

Non-members, this is my monthly push for you to join. The association is continuing to make significant changes within the industry on your behalf. In order to continue to do that, we need your support. We are reshaping the industry and we want you to be a part of the conversation. I challenge you to attend at least one meeting this year and participate. I am confident you will find value in this association. We are strong, but we need your help to become even stronger.

Sincerely,

Jillian Zywien MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE DIRECTOR JILLIAN ZYWIEN has been a senior account executive at Lynch Associates for over seven years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

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AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

AASP/MA NEWSLETTER SPONSOR

WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor!

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New England Automotive Report

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

PLANNED YEAR

JANUARY

MARCH

January 6 Board of Directors Meeting Statewide Meeting

March 22 Board of Directors Meeting Statewide Meeting

MAY

JUNE

May 13 AASP/MA BBQ

May 24 Board of Directors Meeting Statewide Meeting

Date TBD AASP/MA Golf Outing

JULY

SEPTEMBER

July 26

September 23

Board of Directors Meeting

AASP/MA Clambake

NOVEMBER

September 27 Board of Directors Meeting Statewide Meeting

Date TBD New England Automotive Repair Training & Trade Show Event

For more information, visit aaspma.org or contact Executive Director Jillian Zywien at jzywien@aaspma.org or (617) 574-0741.

November 12

November 15

AASP/MA Casino Night & Annual Meeting

Board of Directors Meeting

Check New England Automotive Report for updated event information throughout the year.

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16 March 2016

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AASP/MA Statewide Meeting - Northeast Region Greater Lawrence Technical High School, 57 River Rd, Andover, MA 01810

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

March 22, 2016

MASSACHUSETTS

5:30pm-Registration; 6pm-9pm-Dinner & Presentations*

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

*Board of Directors will host their monthly meeting 4pm-5:30pm

PRESENTATION AASP/MA exclusive update on the new standardized Massachusetts private passenger auto policy Presented by: James A. Castleman, Esq. of Paster, Rice & Castleman, LLC Castleman will cover: What the changes are, what the insurance industry thinks the changes mean, what they actually mean and what you should be telling your customers. Learn techniques to protect yourself and your shop.

DON’T MISS THIS INFORMATION-PACKED EVENING!!!

PRICING Current Members registering by 5pm on Thursday, March 17 – $35. Non-Members registering by 5pm on Thursday, March 17 – $70. * Members & Non-Members registering after the deadline must pay the $70 non-member fee. *Non-Members who join AASP/MA prior to the meeting can pay the $35 member fee.

REGISTRATION To register to attend this meeting, please call our office at (617) 574-0741.

Anyone who wishes to attend must provide a credit card for their registration, even if you are bringing a check as payment to the meeting.

Please call with any questions!

CANCELLATION POLICY All registrations are final. There are no refunds for cancellations. Registration must be received by Thursday, March 17 at 5pm.

We cannot guarantee seating or meals for anyone who registers after the deadline, day of meeting or at the door.

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[LOCAL] NEWS by Joel Gausten

ADALB TACkLES

BIGGEST AGENDA IN YEARS If their January 26 meeting at the Division of Insurance in Boston was any indication, the Auto Damage Appraiser Licensing Board (ADALB) will have an extremely busy 2016.

Boasting a robust agenda and setting the stage for a series of possible changes to state regulations, the Board’s first gathering of the year focused on a number of hot topics including the Automobile Insurers Bureau’s standard private passenger “Massachusetts Automobile Insurance Policy,” an insurance appraiser’s place in negotiating Labor Rates and whether a body shop can perform a teardown without an insurer’s authorization.

CRUCIAL CoRRESPoNDENCE The meeting began with the Board voting to send letters officially stating their position on two recent controversial issues. The first letter, addressed to State Rating Bureau Director Matthew Mancini from ADALB Chairman Gilbert Cox, offers the Board’s perspectives on the changes made by the Automobile Insurers Bureau (AIB) to the standard private passenger policy. One issue of concern for the Board is the following sentence in the proposed changes:

“[T]he most we will pay will be either the actual cash value of the auto or the cost to repair the auto, whichever is less. The cost to repair the auto is the competitive price, which we secure from a licensed repair facility under our direct payment plan…”

Board member Rick Starbard expressed his trepidation over the AIB’s plan as written.

“They’re going to use the lowest amount, [the] lowest rate that they can get from a preferred shop anywhere in the state and cap that at the maximum amount they’re willing to pay any registered shop throughout the state for labor,” he said. “If a shop signs a contract to work for x, fine; I don’t have a problem with that. But that contract shouldn’t bind the rest of the industry...

It flies in the face of our regulation, which states that the whole repair is open for negotiations.”

The ADALB’s letter to Mancini notes that the AIB’s new language, if applied in an improper manner, would conflict with the following requirement in 212 CMR 2.04 (1)(e): “(e) Determination of Damage and Cost of Repairs. The appraiser shall specify all damage attributable to the accident, theft or other incident in question and shall also specify any unrelated damage. If the appraiser determines that preliminary work or repairs would significantly improve the accuracy of the appraisal, he or she shall authorize the preliminary work or repair with the approval of the claimant and shall complete the appraisal after that work has been done. The appraisers representing the insurance company and the registered repair shop selected by the insured to do the repair shall attempt to agree on the estimated cost for such repairs. The registered

repair shop must prepare an appraisal for the purpose of negotiation...”

The letter further states that the AIB policy “cannot be used in a manner that would conflict with the ADALB’s regulation 212 CMR 2.00 et seq., that requires negotiations between the licensed appraiser representing the consumer and the licensed appraiser representing the insurance company.” The motion to send the letter passed on a 31 vote.

The second ADALB letter, addressed to Joint Committee on Financial Services Chairman Aaron Michlewitz, offered the Board’s response to legislation (H778) that ams to abolish the ADALB itself. Specifically, the Board composed the letter to address testimony in support of the bill that was submitted during a December 1 hearing before the Committee. According to the letter, the witnesses testified in support of H778 “because of difficulty the automobile insurance industry allegedly experienced in obtaining temporary motor vehicle damage appraiser licenses during emergencies created by severe snowstorms.” In response to these claims, the ADALB included the following points in their letter to Chairman Michlewitz (with slight edits made

by New England Automotive Report for length and clarity): • As the result of severe snowstorms of last winter, automobile insurance companies requested the ADALB hold meetings to issue temporary motor vehicle damage appraiser licenses. In response to these requests, the ADALB quickly held a meeting within 10 days of the requests. Forty-seven total temporary licenses were issued between February 24 and March 10.

• On or about August 5, 2015, several communities in Massachusetts were struck by several hail storms. As a result, automobile insurance companies requested that the ADALB hold an

emergency meeting to issue temporary licenses. On August 18, 2015, the ADALB held a meeting and issued 22 temporary licenses.

• The ADALB has provided rapid responses to any request received from insurance companies for temporary appraiser licenses due to extreme weather conditions. It is noteworthy that during the short time it took the ADALB to issue temporary licenses for motor vehicle damage appraisers for the insurance companies’ licensed appraisers who resided, worked and were licensed in another state, these companies’ appraisers who reside in Massachusetts were writing appraisals of damage to motor vehicles caused by the extreme weather conditions.

The Board voted unanimously to have the letter sent to Chairman Michlewitz.

REwoRkING THE REGS A considerable amount of the January 26 meeting was devoted to a discussion on proposed amendments to the ADALB’s regulations. Starbard offered a number of proposed amendments that aim to create a more streamlined and less ambiguous appraisal process.

One of these items would revise the regulations regarding supplements to the following: The insurer shall assign an appraiser who shall personally inspect the damaged motor vehicle within one business day of the receipt of a request. If the personal inspection does not occur in one business day, the Expedited Supplement process must be used.

The appraiser shall have the option to leave a completed copy of the supplemental appraisal at the registered repair shop authorized by the insured or leave a copy of his or her field notes with the completed supplement to be faxed or electronically transmitted or hand-delivered to the registered repair shop within one business day.

Starbard noted that this revision would help eliminate the issue of shops releasing vehicles before receiving payment from a carrier.

“I don’t know what other industry in the world...lets vehicles go - or the job to go unpaid - without even knowing how much you’re going to be paid,” he said.

Another proposed change would strike the final line of the following

ADALB member Rick Starbard: “Nobody should be steering the customer. Period.”

ADALB member Lyle Pare believes that insurance appraisers should not set the Labor Rate. regulation (in bold for emphasis): Contact with Claimant and Selection of Repair Shop. No staff or independent appraiser, insurer, representative of insurer or employer of an independent appraiser shall refer the claimant to or away from any specific repair shop or require that repairs be made by a specific repair shop or individual.

The provisions of 212 CMR 2.04(c) shall not apply to any approved direct payment plan pursuant to 211 CMR 123.00.

“There’s so much Wild West stuff going on out there that people hide behind a plan that really is violation of our own regs,” Starbard said. “Nobody should be steering the customer. Period.”

Starbard’s proposed changes also aim to address industry training and certifications, as shown in the suggested use of “shall” in place of “may” in the below regulation: The registered repair shop must prepare an appraisal for the purpose of negotiation. No appraiser shall modify any published manual (i.e., Motors, Mitchell or any automated appraisal system) without prior negotiation between the parties. Manufacturer warranty repair procedures, I-CAR, Tec Cor and paint manufacturer procedures shall also apply. Further, no appraiser shall use more than one manual or system for the sole purpose of gaining an advantage in the negotiation process.

“In many instances, we’ll have a procedure or a statement from a vehicle manufacturer that is in conflict with what’s on the appraisal,” noted Starbard. “When we present that information, it’s not taken in the spirit in which the manufacturer meant it to be.”

Other regulation changes proposed

by Starbard include: • Language that allows items including shipping/handling and core charges to be listed separately on the appraisal and not just considered overhead for the shop; • Revising the conflict of interest language to address the issue of drive-in claim centers; and • A revision that replaces “manual” with “database” in the following regulation: “If a formula of dollars-times-hours is not accepted by a licensed repair shop or a licensed appraiser, then a published database shall be used.”

Board member Lyle Pare (Plymouth Rock Assurance) proposed the addition of “time” to the following regulation: The appraiser shall determine which parts are to be used in the repair process in accordance with 211 CMR 133.00. The appraiser shall itemize the cost of all parts, labor time, materials and necessary procedures required continued on pg. 54

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[NATIONAL] NEWS by Jacquelyn Bauman

Seize Education at NORTHEAST® 2016 Those who consistently seek out information and work towards personal growth through education are the ones who end up at the forefront of their field. This is true for all professions, from doctors to lawyers to business owners to technicians. Because opportunities for education in the automotive repair field may seem limited at times, it is incredibly important to seize the chance to learn whenever it presents itself.

On March 18-20, the 39th Annual NORTHEAST Automotive Services Show (hosted by AASP’s NJ affiliate) will return to the Meadowlands Exposition Center in Secaucus, NJ – just a short ride away for repairers in the Commonwealth. In addition to celebrating the earliest sold-out show floor in the event’s history, NORTHEAST organizers have increased the amount of educational seminars and demonstrations (as well as the variety of topics they cover) so that attendees can find everything that they are looking for in one spot.

Covering major industry issues including OEM certification, advanced materials, proper job costing and photo estimating, NORTHEAST 2016’s educational slate is breaking records by hosting industry favorites in addition to introducing new speakers and topics to the market.

I-CAR is one of many automotive repair staples that will once again be available to NORTHEAST attendees.

This year, the not-for-profit organization will bring its increasingly popular 2015 Ford F-150 Structural Repair Training Course (FOR06) and Vehicle Technology and Trends 2016 (NEW16) class to the Secaucus event.

“I-CAR is committed to helping collision repair technicians and facilities stay on top of industry trends and

evolving repair processes,” says I-CAR instructor Pete Fryzel. “Both NEW16 and FOR06 will provide attendees with focused content that is immediately applicable to the shop floor.”

For many of those who are already registered for these I-CAR classes, the most immediate benefit is the step towards OEM certification that they provide. Further confused about the ins and outs of OEM certification programs? In order to accommodate this increasing specialization of the automotive repair field, NORTHEAST will host representatives from Honda, Ford, Audi, Nissan and Fiat/Chrysler Automobiles to discuss the particulars of joining and maximizing their manufacturer’s programs.

“OE certification and recognition programs are not just the latest trend,” says American Honda Motor Co. Assistant National Manager Gary Ledoux. “Significant changes in vehicle construction – and how those vehicles need to be repaired – are dramatically changing the collision repair landscape. Looking to the future, how will your shop fare? Talk to the experts in the field at ‘Body Shop Certification and You: An OEM Panel Discussion’ on Saturday, March 19 at NORTHEAST.” If certification is less of a concern for your shop than the evolution of automotive technology hitting your (and your competitors’) bays now and in the future, your interests will be served at “AASP/NJ Presents: Advanced Material Repair in 2016 & Beyond.” This presentation will bring together industry giants Larry Montanez (P&L Consultants), Dave Gruskos (Reliable Automotive Equipment, Inc.) and Doug Richman (Aluminum Transportation Group) to discuss every aspect of repairing complex materials, from properties to safety to procedures.

Coming in from out of town? The following NORTHEAST® 2016 host hotels are within walking distance from the show: Hyatt Place-Secaucus

Courtyard by Marriott

Embassy Suites

575 Plaza Drive Secaucus, NJ 07094

455 Harmon Meadow Blvd.

Secaucus, NJ 07094

455 Plaza Drive Secaucus, NJ 07094

Phone: (201) 422-9480 Fax: (201) 422-9443

Phone: (201) 617-8888 Fax: (201) 319-0035

Phone: (201) 864-7300 Fax: (201) 864-5391

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NORTHEAST®

[NATIONAL] NEWS Anyone looking to stay ahead of the curve in automotive repair should not miss this discussion.

In conjunction with these hot-button issue highlights, Kristen Felder of Collision Hub will present “Photo Estimating Comes to the Northeast,” which will tackle a problem that has become progressively pervasive in the Commonwealth. Outlining the reasons why photo estimating is being pushed for by insurers, what the consequences are from its inception and what effect it will have on your repair shop, this hour-long demonstration is particularly important for AASP/MA members and non-members alike who have been following the work being done by the ADALB and the association to address the issue (“ADALB Rescinds Controversial Advisory Ruling,” NEAR, September 2015).

Of course, these are just a handful of the stellar learning opportunities available at NORTHEAST 2016, the full schedule for which you can find on this and the opposing page. With so much information available within driving distance (plus the top exhibitors in the market all consolidated in one area), it would be foolish to miss out. Don’t find yourself in the dust; attend NORTHEAST and find out how you can make your business work better for you.

The 39th Annual NORTHEAST Automotive Services Show will take place March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ. Free registration is now open at tinyurl.com/ NE16reg. If you have already registered and would like to sign up for the seminars you read about here, as well as the other events at the show, go to aaspnjnorth east.com/seminars-demos.shtml.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

8AM

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1PM

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FRIDAY, MARCH 18 SEMINAR ROOM A

2016 Ea Lead AASP/N

SEMINAR ROOM B SEMINAR ROOM C SEMINAR ROOM D DEMO AREA

Building and Standard Opera for Collisi

UPSTAIRS PRESS ROOM

SATURDAY, MARCH 1 SEMINAR ROOM A SEMINAR ROOM B

Increase Profits, Lower Cycle Time / Supplements with Triage Estimating *Pre-registration required!

Body Shop Certification and You: An OEM Panel Discussion

SEMINAR ROOM C SEMINAR ROOM D DEMO AREA UPSTAIRS PRESS ROOM EMBASSY SUITES (ACROSS FROM MEC)

Photo Estimating Comes to the Northeast

2015 Ford F-150 Aluminum Repair Information

OEM Collision Rep Procedures vs.

Industry Standard A 2016 Update

Competing with the Talking Car – Virtual Steering

I-CAR FOR06 (Bergen Room) $$$ THIS AND I-CAR NEW16 ARE FEE-BASED COURSES $ I-CAR NEW16 (Meadowlands Room 1&2)

SUNDAY, MARCH 20 8th Annual Family Day Presented

by AASP/NJ SEMINAR AREA

SEMINAR ROOM A SEMINAR ROOM B

DEMO AREA 26 March 2016

9AM

New England Automotive Report

2015 F-150 Aluminum Repair Information

Effective Trainin for Shops

®

2 0 1 6 AT- A - G L A N C E

2PM

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7PM

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9PM

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12AM

18 (SHOW HOURS 5PM - 10PM)

6 East Coast Resolution Forum & eadership Meeting Hosted by SP/NJ & SCRS - SEMINAR AREA

AASP/NJ Presents: Advanced Material Repair in 2016 & Beyond

Positioning Yourself in the Collision Repair Industry

GM Structural Repair

(Sponsored by Axalta Coating Systems)

2016 NORTHEAST® Exhibitor Appreciation After-Party Presented by AASP/NJ

Variable Rate System

SEMINAR AREA This event is open to NORTHEAST exhibitors only.

Effective Training for Shops

ing and Sustaining Operating Procedures Collision Repair

Building and Sustaining Standard Operating Procedures for Collision Repair

Maximize Your Estimates! $$$ FEE-BASED COURSE $$$

H 19 (SHOW HOURS: 10AM - 5PM)

ion Repair ures vs. tandards: Update

"Who Pays for What?" Survey Results (Sponsored by Axalta Coating Systems)

The Customer Encounter Aluminum Industry & I-CAR Join Forces to Address Collision Industry Knowledge

Variable Rate System Estimating Following OEM Guidelines

Maximize Your Estimates!

ALSO HAPPENING AT NORTHEAST 2016: • Accudraft National Sales Meeting (Thursday, Friday & Saturday, March 17-19) • First Annual ProFirst Lunch & Learn Seminar (Saturday, March 19, 2pm-3:30pm) • Celebrity appearance by KC Mathieu, courtesy of Platinum Show Sponsor BASF @ Booth #227 (Saturday, March 19, 10am-4pm) • Custom Paint Demos by Artist Javier Soto @ Booth #612 • Meet Nub of Nub Grafix courtesy of Valspar @ Booth #413 • Live Broadcast by Ron Ananian, “The Car Doctor” (Saturday, March 19, 2-4pm) • “Increase Profits, Lower Cycle Time / Supplements with Triage Estimating” presented by Larry Montanez III; facilitated by Metropolitan Car-o-liner @ Booth # 217/117 (Saturday, March 19, 8:30am) • AND MORE!

$$$ FEE-BASED COURSE $$$

SES $$$

20 (SHOW HOURS: 10AM - 3PM)

Training hops

Shaded boxes above are categorized as follows:

*Schedule subject to change.

DEMO

OWNER/MANAGER SEMINAR

SPECIAL EVENT

PAINTER / ESTIMATOR/ TECHNICIAN SEMINAR

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INVE TING in your

UCCE

Why AASP/MA Membersh

wHY Do PEoPLE JoIN AASP/MA? If you’re a regular reader of this magazine, you are aware of just how hard association representatives – most of whom are shop owners or vendors just like you – work on behalf of the industry. How do members directly benefit from these various activities? This month, New England Automotive Report answers that question by touching base with both new and veteran AASP/MA members to learn more about the issues they face, the goals they have and why being a part of the state’s only collision industry advocacy group is important to them.

TEN YEARS oF LEARNING AASP/MA continues to provide value to Andre Marcoux, owner of Western Mass Collision in West Springfield. Formerly with longtime association member Lombard Equipment, he joined AASP/MA 10 years ago after becoming a first-time collision repair business owner. A decade later, he can’t say enough about how membership has helped him stay strong in an often-frustrating field.

“For the first three years after I bought the shop, I hated it,” he reveals.

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“I was a technician by trade jumping into the field of owning a body shop. I never had my appraiser’s license; I never worked with the customers up front. I know how to talk to people, but this was a whole new ordeal. But going to the association meetings helped me. I could go to these guys or pick up the phone and not feel shy or awkward about asking them questions. I’m a technician who became a body shop owner; those are two totally different hats. Without the association, my shop probably wouldn’t be in existence; I would have bailed by now.”

Like many members, Marcoux has utilized AASP/MA as a resource to help navigate through the numerous (and confusing) state laws and regulations that impact the industry.

“Education is key,” he says. “Being a member of the association has helped me better understand the laws. Insurance companies are going to try to rule you by fear or intimidation. Knowing something that benefits your shop and not backing down is important.”

Of course, anyone who has spent a decade with the association knows that being a member isn’t just about learning how to maneuver through regulations or

New England Automotive Report

better negotiate with insurers. Involvement in AASP/MA also means getting a chance to get away from the stress of your business and have fun at a number of fundraising events held throughout the year. Always as active in organizing these outings as possible, Marcoux stepped up his commitment last fall when he emceed the association’s Clambake for the first time. Although he is certainly busy enough at his business, Marcoux still finds the time necessary to be a part of AASP/ MA’s ever-growing event schedule.

“It gives us a chance to communicate and do something away from the norm,” he says of his participation.

“When it comes to events like the Clambake, we have an opportunity to do something to raise money. It also gives us a chance to get together and get to better know our friends who are out there in the industry. I don’t look at everyone who’s around me as my competitors. There is plenty of business out there, and we’re all doing the same thing. I never feel threatened by anyone around me.”

When asked for his thoughts on current AASP/MA activities, Marcoux says he is encouraged by the association’s

r

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ship is Meaningful

by Joel Gausten

recent decision to eliminate its statewide chapter structure in favor of a more centralized operation.

“I approve of that, and I believe in that,” he offers. “I think there are things that need to be at the table on a higher level than what we as individual chapters could do. Merging the chapters and getting Lynch Associates involved has taken so much off of my plate; I feel good about what’s happening.”

A CALL FoR (NEw) HELP Positive feelings towards AASP/MA can also be felt in Jamaica Plain, where new member David Elie co-owns Acme Body & Paint with his brother, Seth. After purchasing the business in November 2013 from Massachusetts industry mainstay Chuck Sulkala, Elie immediately committed himself to learning as much as he could about how to make his new operation the best it could be. At the suggestion of his paint vendor, SherwinWilliams, he attended the 2015 AASP/MA Golf Outing.

Walking away with new parts vendor and insurance agent contacts and a great feeling of camaraderie, he was immediately inspired to join the association.

“It’s important that we have a voice,” he says. “I know that AASP/MA was working at the State House over the summer on the Labor Rate. Thats important for all shops, whether they’re a part of the association or not.”

Looking ahead, Elie is hopeful that AASP/MA will continue to “get into high schools and trade schools and

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get the word out about the industry” in an effort to secure a stronger future workforce.

“The biggest issue we’re having is [finding] well-trained employees,” he reveals. “There’s no shortage of damaged cars; there’s a shortage of welltrained technicians.”

For longtime AASP/MA member Josh Fuller (Fuller Automotive, Auburn), promoting education throughout the industry is the highest priority. Currently chairman of the ICAR Volunteer Committee of Massachusetts, he agrees with Elie that AASP/MA must remain active in ensuring that new and old technicians alike receive the proper training.

“I would definitely like to see the association take more of an active role in promoting I-CAR training – not only for the association, but for the insurance companies as well,” he offers.

“Training is a great thing not only for the industry, but also for the individual technicians and shops. It’s even more important for newer technicians coming into the industry to be able to be part of something and have an organized career path through I-CAR certifications.”

Fuller believes that this obligation also extends to the insurance industry.

“If insurance companies want the very best for their customers and consumers, then I-CAR is an important part of that recipe,” he says.

While the industry and AASP/MA have a considerable number of critical issues to address, being able to simply have a good time is equally important to the association experience.

“You need to have fun in anything that you do; it can’t always be about business or shop talk,” Fuller observes. “It’s good to get out and let loose a little bit and enjoy some fun things. I think AASP/MA has done a great job in the past with their events.

The BBQ is a great time, and Casino Night has been hugely successful for years.”

Impressed with the association’s forward motion, Fuller is proud to be a member of AASP/MA. “It’s important to stay in touch with the local industry and local players,” he expresses. “You can’t run

your business with your head in the sand; you need to know what’s going on at all times and be aware of the things happening around you.”

REACHING A NEw RATE Since becoming a shop owner nearly a decade ago, new AASP/MA member Dave Cusano (Boyle’s Body Works, Arlington) has been keeping a close eye on the trends and changes occurring in the industry – and he’s not happy with what he sees. Although he says that some insurers in his area “have been creeping the Labor Rates up little by little,” he joined AASP/MA to add to their strength in numbers in working to get their members fairly compensated for their professional expertise. As a shop owner who works to provide bonuses and other incentives to his employees, he would surely benefit from a raise in rates.

“Because of where the Labor Rate’s been, shops can’t afford to pay good, high-quality techs what they’re actually worth,” offers the shop owner, who purchased his business in 2008 from former AASP/MA Board member David Boyle. “Kids started seeing that years ago; instead of taking the body [courses], they said, ‘Well, I can get a job at a dealership and make more money as a mechanic’...Why every state around Massachusetts is getting more money per hour never made any sense to me.”

Of course, the industry needs to do a better job of encouraging industrious young technicians to enter the field in the first place.

As Cusano says, “Call the local trade schools and see how many of them even have an auto body program anymore. A lot of them have shut them down because so few kids are taking the trades. That’s been going on for a long time. And [in] any trade school that did have a program, if there were three to five kids in the graduating class, that was a lot. Out of those six kids, maybe one or two of them might think about being a bodyman after they graduate.”

Fortunately, Cusano has seen positive trends in other areas. His growing focus on repairing high-end

automobiles (Ferrari, BMW, MercedesBenz, etc.) has helped him maintain a five-star rating on Yelp and Angie’s List. This enables him to charge a higher Labor Rate for non-insurance, customer-pay work.

“I’m actually getting a lot of customers just based on those two sites,” he says. “I don’t have any problem charging a higher Labor Rate; if people look at those sites and they see how highly we’re rated, I can justify charging more money.”

Currently, at least 50 percent of Boyle’s Body Works’ overall work is in the customer-pay category.

“Especially over the last year, I’m seeing a lot of customers coming in and paying on their own,” Cusano says. “People are so afraid of putting in a claim and seeing their rates go up because of it.”

Despite its ups and downs, the Massachusetts collision repair industry is a community based on positive interaction and working towards shared goals. Every professional featured here has learned that regular participation in AASP/MA is the key to a brighter, more profitable future.

“Many hands make light work,” Fuller says. “It’s a challenging, complicated industry; you owe it to your customers to have the ability to expand your mind outside the walls of your business. You owe it to your customers to know where the industry is going to be in six months, 12 months or three years.

“A lot of people will say that AASP/MA has been dealing with the same things that [other] organizations [like MABA or CMARA] were dealing with 20, 30 years ago,” he adds. “Yeah, they are some of the same topics we’re discussing, but look at the progress that’s been made; look at the amount of knowledge, camaraderie and unification that’s come out of it from a lot of the key players getting their points across.”

For more information on AASP/MA events and membership opportunities, please contact Executive Director Jillian Zywien at (617) 574-0741 or jzywien@aaspma.org.

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[VENDOR] SPOTLIGHT by Jacquelyn Bauman

SERVICE ABOVE ALL: BMW of Stratham

At BMW of Stratham, the number one focus is the customer behind the wheel.

“Whether the customer has his or her car for two years or 20, we want to make sure that everything goes smoothly during their time together,” says Parts Manager Mark Wilkins.

“Even though most of our orders come in from the shop and not the customers themselves, if those orders aren’t filled satisfactorily, then the drivers are the ones being hurt.”

Serving all of Massachusetts and New Hampshire and parts of Vermont and Maine, BMW of Stratham knows the importance of having a fleet of delivery vehicles and an inventory to match the demand. Boasting over $1 million in parts and six trucks out on the roads, on-time distribution is not a concern for the parts department.

“We service a high-end line of vehicles, so our customers are very concerned about what goes in their cars,” Wilkins explains.

BMW of Stratham is constantly working to provide discounts and price cuts on parts in order to stay ahead of an increasingly competitive market. For February, the distributor offered 20 percent off roof rack systems. They provide new discounts monthly to keep OEM parts in customers’ cars.

“Our high-quality parts are built specially for BMW vehicles,” Wilkins

points out. “They are more expensive than their aftermarket counterparts, but they also make for faster, more efficient repairs. We feel it’s incredibly important for these parts to be used in our customers’ vehicles. With automobiles becoming more and more of an investment, it’s foolish to put anything in the car that could lower its value.

“While we do offer online ordering, there is a finesse to person-to-person contact that can be lost in translation when ordering through the computer,” he continues. “We love fielding questions from shops and consumers because it means that they’re going to get exactly what it is that they need. We have six people on the phones here, ready and willing to make sure that your service is exactly what you need it to be, and we’re very proud of that. Our human touch sets us apart from our competitors.”

BMW of Stratham customers can order parts over the phone to its sixperson call center, submit requests online at parts.bmwofstratham.com or use any one of the country’s top parts ordering systems such as OEConnection. The parts department is open from 7am-5pm Monday to Friday and on Saturday from 7:30am-4:30pm.

In Memoriam: David Elie

On December 17, the AASP/MA community said goodbye to David H. Elie, father of AASP/MA members David and Seth Elie of Acme Body & Paint in Jamaica Plain. Affectionately known as “Uncle Dave” to family and friends alike, the lifelong Worcester resident passed away at 68.

One of five children, Elie proudly served in the Marine Corps during the Vietnam War. In recent years, he had been helping his sons in their shop, which they purchased in 2013.

In addition to his sons, Elie is survived by his daughter (Karen Mathieu Thomas), one brother (Arthur Elie), one sister (Patricia Coyne), five grandchildren and various nieces, nephews and extended family members. He was preceded in death by his brothers James and Donald.

AASP/MA and New England Automotive Report offer the Elie family our deepest condolences.

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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.

IS THE LABoR RATE NEGoTIABLE? At the January meeting of the Auto Damage Appraiser Licensing Board (ADALB), one of the members submitted a draft proposal for an amendment to the Board’s regulations.

He noted that the appraisers for both the repair shop and the claimant’s insurer are required to “attempt to agree” on the cost of repairs. Further, the existing regulations require all appraisers to itemize the cost of certain specific elements of the repair, i.e., “all parts, labor, materials and necessary procedures required to restore the vehicle to pre-accident condition.” As a result, the ADALB member suggested that appraisers be required to negotiate all of the required itemized elements.

There was one major exception made in the proposed amendment, however – the Labor Rate. The Board member wanted to change the regulation’s required itemization of “labor” to only “labor time,” submitting written justification that noted, “The Appraiser does not have the authority pursuant to his or her license to establish a Labor Rate for auto repair work. Appraisers do not have particular expertise in the economics and development of Labor Rates, and those matters are not part of their licensing qualifications. Their expertise is limited to an assessment of the auto parts in need of repair and the number of hours to do the auto body repair work.”

Rather, it was suggested that the Labor Rate is something to be negotiated directly between a shop and the insurer itself, and that it is “not under the appraiser’s authority” to determine the Labor Rate for reimbursement.

I was shocked to learn the ADALB member’s stated position on the determination of the Labor Rate. While it is common knowledge within the repair industry that most insurers tend to set a particular Labor Rate and seem to instruct their appraisers to write their appraisals using only that rate, I had never before heard an insurance representative actually state that this is what insurers do. It had always been my understanding that licensed appraisers should be able to evaluate the cost of all elements of a repair, and should be able to make their own independent determination as to a proper Labor Rate.

Other than for the purpose of attempting to exert complete control over the repair process, it is hard for me to understand why an insurer would believe that its appraisers could not make their own determination of a Labor Rate in any particular circumstance, and why their appraisers should not be able to negotiate it. There are several reasons why I believe this.

First, the Labor Rate for some types of repairs is, in fact, negotiated every day. The Labor Rate for truck repairs seems to always be negotiable, being a judgment call for

the appraisers attempting to agree on the cost of repair with regard to the nature of the repairs, the vehicle being worked on and the skill and equipment necessary and available for the job. The same is true for other specialty types of repairs and vehicles, such as for aluminum repairs or antique automobiles. Additionally, it is my understanding that the Labor Rate paid by insurers for mechanical labor also varies depending on the same types of factors. It is unfathomable to me why the Labor Rate for all auto body repairs should not be evaluated in the same manner.

Second, insurers’ appraisers are the boots on the ground for their companies. They make daily trips to numerous repair shops and are able to see what facilities in a designated geographic area with certain types of equipment are charging for specific repairs. They are the eyes and ears of the insurers, with the best view of how the market is charging and of what reimbursement rate a repair at a particular shop deserves. Contrary to the ADALB member’s statement, insurance appraisers should be able to independently evaluate the proper Labor Rate to be paid, and should be better qualified to do so than perhaps any other insurer employees.

Third, it seems to me that the Labor Rate is the single greatest aspect of repair costs that could vary from shop to shop and repair to repair. There are clearly differences in shop overhead, skill, training, equipment and location throughout the state and the industry, and these differences should contribute to the determination of the actual cost of repair. If a shop is in a geographic area where rents, real estate taxes and/or wage costs are high, then it should affect the cost of repair. If a shop has specialized equipment necessary to properly complete a certain repair, then that will also affect the cost of repair.

With the exception of personal judgments as to required time for limited types of repairs or techniques necessary for particular work, most repair costs are fixed by standard industry guides. What is the number of hours that a particular estimating system allows for a certain repair? What are the specific listed procedures necessary to accomplish the repair?

What is the cost for paint and materials as calculated using a particular paint guide or other documentation? What is the retail cost of a part and the standard discount or markup attributable to that part? If most repair charges are going to be relatively uniform throughout the industry and the state, then the only way to really factor in differences in overhead, skill, available specialized equipment, etc. is through a variance in the Labor Rate charged by and reimbursed to individual collision repair shops.

Fourth, an insurer should not really care what Labor Rate it pays for repairs in a particular shop, so long as the continued on pg. 58

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[TOOLING] & EQUIPMENT by Jacquelyn Bauman

“kooL TooLS” AT CIC SPoTLIGHT wHAT’S NEw Whether your operation is big or small, it costs money to make money – and running a business requires a series of purchases. However, in the collision repair industry, large purchases often dwarf smaller (yet equally critical) ones, and this can be a mistake for many shops.

At the Collision Industry Conference (CIC) in Palm Springs, CA in January, CIC Technical Presentation Committee members Toby Chess and Kye Yeung gave their third annual “Kool Tools from SEMA 2015” overview, which outlined a number of impressive tools selected in November 2015 by SEMA judges, Collision Hub, I-CAR and Chess and Yeung. (A similar presentation was given at the SCRS Open Meeting prior to the latest CIC.) “What we want to get across by these presentations is that there are a lot of things out there that shop owners aren’t doing that could speed up their operations without sacrificing quality,” explained Chess to New England Automotive Report after the presentation. “You go to a show like SEMA and it’s massive; you ask yourself, ‘How do I see it all?’ No one goes to SEMA for a socket wrench; they’re either going to buy a welder or a toolbox or a lift or something like that. A lot of these smaller products are easily missed, even though they add value to the shop.”

All of the products chosen for the “Kool Tools” presentations are purchased and utilized before being recommended. After the conclusion of the discussion, we learned that a number of tools never made it to the CIC platform because they didn’t meet a high-enough standard.

“We chose these tools because they stand out to us, but just because [some others] seem useful doesn’t necessarily mean that they are,” offered Yeung, who also serves as the current vice chairman of the Society of Collision Repair Specialists (SCRS). “I test all of the tools at my shop in California before we give them any kind of approval for the presentation. We look for things that are new, are familiar but make the job easier, are less expensive or have an added feature. For example, we showed a light by Dent Fix that is rechargeable by USB port and has variable light settings for the different places you may use it. We’ve seen a lot of lights before, but that added innovation made a difference.”

One of the items demonstrated at “Kool Tools from SEMA 2015” was Kent Automotive’s Quickfill high-build primer. This no-mix aerosol primer stood out significantly to both Yeung and Chess.

Kye Yeung co-hosted a discussion on various “Kool Tools” he and Toby Chess discovered at SEMA.

“Usually, when you spray an aerosol, it’s thin and runny and there’s no build to it,” Yeung explained. “A lot of the primers that are available are that way. In this instance, you need something that will earn that label of ‘high-build.’ The Quickfill provides that necessary sealing quality, more so than other products available. It’s the same with the [fast-drying] SprayMax epoxy primer [that we also showcased.] Every manufacturer, in order to keep its paint warranty, requires that an epoxy primer is applied to anywhere where there is bare metal exposed before a primer is used. It can be time-consuming, potentially adding an extra day or so to the process.”

Many of the tools at this presentation simply make small revisions to basic products, which ends up setting them apart from their competitors. For example, the gap gauges available from Reliable Automotive Equipment, Inc. are impressive because they adhere to a vehicle by suction rather than by magnet.

“You can’t use a magnet to adhere a tool on an aluminum vehicle; it just doesn’t work,” Chess said. “This makes the [gap gauges] forward-thinking, as they address more than just steel vehicles. As more aluminum and carbon fiber cars come into the shop, this innovation sets these gap gauges apart.”

Other companies featured in the CIC and SCRS presentations included Steck, GL Enterprises, SprayMax, Infratech, Collision Edge, Time Shaver and Whistler. To avoid getting overwhelmed by the thousands of dollars in investments required by welders, lifts and the like (and skipping over the pivotal small expenses as a result), Yeung suggests taking it slow.

“It’s important to take advantage of trade publications [like NEAR], not only because of the articles, but the advertisers as well,” he explained. “I understand the desire to flip from article to article and skip over the ads, but they’re in there for a purpose. Slow down a little and take a look at the advertisements. You’d be surprised what you might find there.”

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[TECH] CORNER

REAL MoNEY FoR REAL woRk: ARE YoU USING THE DEG? As the everyday battles to properly conduct an automotive repair business continuously grow, it is foolish not to use every tool available to better your situation. In January of 2008, the Society of Collision Repair Specialists (SCRS) and AASP National were among the groups that created the Database Enhancement Gateway (DEG) in order to aid in one of the most prominent and constant struggles that shop owners face – proper reimbursement from insurers.

Recognizing the complexities of the estimating databases due to the various algorithms that the Information Providers (IPs) use to derive their information (and the difficulties those create in writing precise labor times and values), the DEG was instituted as a way for end-users to find all of the information they need and submit any business-hindering inquiries in one place. Since its inception eight years ago, the DEG has accepted over 5,000 inquiries from its users.

“It used to take multiple searches across a multitude of platforms to try and get the data necessary just to find out one piece of information about one part of an estimate,” says DEG Administrator Arthur Harris. “If an insurer is fighting you on the labor values for a

number of different processes – for example, feather, prime and block, test spray out panel, removal of part number labels and bleed brakes – you would need to find out what the database they’re using says about each and every one of those procedures. If you’re using Audatex and they’re using CCC, and you don’t have access to CCC because you don’t have that system, that’s going to be one timely estimate.”

“You want to be able to have documentation in your hand to say to an insurer, ‘You need to pay me for this work that I’m doing,’” agrees AASP/MA Board member Rick Starbard. “The DEG allows you to take a walk through your shop and see all of the work that you’re doing that you’re not getting properly paid for.”

Of course, documentation for insurers is just a small part of the benefits that the DEG provides to shops.

“The DEG is amazing because it allows you to communicate with the Information Providers so that the data about how to correctly conduct repairs is uniform across the board,” Harris explains. “You can submit an inquiry saying, for example, that the procedure to replace a left door skin on a 2004 VW Beetle is two hours shorter than it should be in MOTOR. We get that

by Jacquelyn Bauman

complaint to the IP so that they can make the adjustment in their system.

Then, the next time an insurer goes into MOTOR to write an estimate on a 2004 VW Beetle, the procedure will have jumped from, say, 4.5 hours to 6.5.

“It requires a community effort,” he continues. “While you may not do another left door skin on an ’04 Beetle any time soon, there may be a shop down the street that has one in its bay right now. And maybe that shop submitted an inquiry on a repair for a 2013 Chevy Camaro that was addressed in CCC, and next week you’ll have one driving into your shop. The way for the system to be most effective is for everyone to participate.”

As members of an affiliate organization of AASP National – one of the associations that was pivotal in the creation of the DEG – it is critical for the AASP/MA community to be active in advancing the project through consistent use. The point of joining an association is to be supplied with what it takes to improve your industry; the DEG is one of the tools that can lead to the betterment of collision repair businesses in the Commonwealth and beyond.

To find out more about the DEG, go to degweb.org.

MASSACHUSETTS

UREThANE SUPPly CoMPANY ANNoUNCES NAME CHANGE To Urethane Supply Company, a pioneer in the field of automotive plastic repair since 1981, has announced a change in the name of its business to “Polyvance.” The change in name reflects the progression that has occurred in automotive plastics since the company’s inception.

“Back in 1981, most of the bumper covers were actually made from urethane plastic,” says Kurt Lammon, company president. “The founder of our company, Jim Sparks, came up with the original name because he supplied products required to repair urethane bumper covers.”

Because most bumper covers are now made from blends of polypropylene, the old name has created confusion in the marketplace.

“We often get calls from people who want to buy urethane foam, thinking that we supply urethane,” says Lammon. “We wanted a name that speaks to our main mission, which is advancing the technology of polymer repair.”

“Advancing Polymer Repair” is the official tagline and the inspiration for the name “Polyvance.” Polyvance will continue to be devoted entirely to helping body shops profit from plastic repair and refinishing through its innovative products and training. Polyvance will continue production of its most popular products – the 6059-C Nitro Fuzer nitrogen plastic welding system, the 3601 and 3611 Bumper & Cladding Coat Adhesion Primer and the 5700HT Mini Weld Model 7 airless plastic welder – as well as its complete line of plastic repair and refinishing products. Polyvance’s products will continue to be available through paint, body and equipment distributors across North America.

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NEWS FLASH

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

[LOCAL] NEWS continued from pg. 21 to restore the vehicle to pre-accident condition…”

Although this is a minor change, Pare stressed that it is important because it puts limits on how much power an insurance appraiser has during the repair process.

“The appraiser does not have the authority pursuant to his or her license to establish a Labor Rate for auto body repair work,” he opined. “Appraisers do not have particular expertise in the economics and the development of Labor Rates, and those matters are not part of their license qualifications. Their expertise is limited to an assessment of auto parts in need of repair and the number of hours to do the auto body repair work. The rate at which an auto body shop is to be paid is handled by negotiations between the insurers and the body shops. The individual appraisers must focus negotiations on [the] content of the appraisal as it relates to the parts, labor and necessary materials.

It is neither under the appraiser’s authority nor the authority of the ADALB to determine what a shop is to be reimbursed for a Labor Rate.”

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A special listening session will be held on April 26 for the public to offer feedback on these proposals. The ADALB will then make their recommendations based on these comments and host a special public hearing on these specific points before the Board’s suggestions are sent to the Governor.

THE TRoUBLE wITH TEARDowNS Following up on the topic of teardowns discussed at length at the ADALB’s December meeting (“ADALB Targets Pre-Insurer Teardowns, NEAR, December 2015), Pare proposed a motion for an Advisory Ruling stating that the word “appraiser” in the following sentence in 212 CMR 2.04(e) refers only to the appraiser who represents the insurer: If the appraiser determines that preliminary work or repairs would significantly improve the accuracy of the appraisal, he or she shall authorize the preliminary work or repair with the approval of the claimant and shall complete the appraisal after that work has been done.

New England Automotive Report

Pare argued that making this distinction would prevent shops from tearing down vehicles without an insurer’s authorization. Interestingly, the topic was met with resistance from Plymouth Rock’s general counsel, Kathy Henry.

“I don’t think we need to be having this conversation, and the support for that is what the industry is doing today,” she told the Board from the audience. “With very few exceptions, the repair shops are not doing the preliminary appraisals; they’re waiting for the insurance company appraiser to come in and look at the repair. The reason for that is so the insurance company can actually inspect the vehicle, determine what repairs need to be done and also do some early claims investigation. By the shop making that unilateral decision to decide whether or not the preliminary work is appropriate, there is an inherent conflict of interest [that] opens the door for a shop to do more work than is necessary and deprives the independent adjuster represented by the insurance company from carrying out [his or her] statutory obligations. It doesn’t make any sense.”

Auto body industry attorney Jim Castleman urged the Board not to issue an Advisory Ruling of this nature, arguing that state regulations make it clear that a shop must have one or more licensed appraisers who can perform their own appraisal for the purpose of negotiation.

“I can’t condone repair shops doing major teardowns when it destroys the ability to be able to view damage to a vehicle,” he said. “On the other hand, how can the repair shop write an accurate appraisal in order to negotiate without being able to do at least some disassembly to be able to determine whether or not there is hidden damage [or] whether or not there is something that should be done?”

Board member Joseph Coyne, Jr. (Home & Auto Appraisal Bureau) opined that the supplement process eliminates the need for extensive teardowns that could hinder an insurer’s ability to properly investigate a claim.

“We definitely should not let body shops disembowel vehicles to the point where it takes away the investigation of a claim,” he said.

The Board was slated to have their next meeting on February 23. Coverage will be included in next month’s New England Automotive Report.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/NJ’s

Networking.

Education.

Innovation.

Technology.

IT’S ALL HERE. March 18 - 20, 2016 | Meadowlands Exposition Center | Secaucus, NJ Online FREE Registration is NOW OPEN!

www.aaspnjnortheast.com New England Automotive Report

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2016 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PLEASE TYPE oR PRINT LEGIBLY *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ Street

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________________________________________ Web Site Address ____________________________________________

MEMBERSHIP TYPE (check one) Collision Repair Shop

ACCOUNTS PAYABLE CONTACT: Name: __________________________________________________

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Both, Collision & Mechanical Repair Shops Vendor

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AASP/MA CHAPTER (check one) MidState Southeastern Northeastern Western

(The AASP membership year is from January 1 to December 31, 2016)

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Monthly & Quarterly Dues are Automatic Credit Card Transactions ONLY*

NEW! Political Action Committee (PAC) Donation ...............$_____ Personal Contributions Only

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PLEASE CoMPLETE THIS MEMBERSHIP APPLICATIoN AND RETURN IT wITH PAYMENT To AASP-MA oFFICE. 12 Post office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

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[LEGAL] PERSPECTIVE continued from pg. 41

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bottom line total cost does not exceed what its appraiser believes is the proper amount that the company should be responsible for paying. If a shop can more efficiently make repairs, does not charge for certain procedures or has a quick repair completion time that saves an insurer rental costs, then why not allow the insurance appraiser to agree to pay that shop a higher Labor Rate?

CoNCLUSIoN Is a repair shop’s Labor Rate negotiable? In my opinion, absolutely. And it is time that insurers – and body shops – realize it.

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AUT M TIVE AD INDEX Allen Mello Chrysler Dodge Jeep Ram ......28 AP Media ........................................................19

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at jcastleman@prclawoffice.com.

Audi Group ....................................................25 Audi Shrewsbury ..........................................44 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram..............8 Balise Wholesale Parts Express ......................6 Baystate Chrysler/Jeep/Dodge ..................17 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................22-23 BMW/Mini of Warwick ................................29 Clay Subaru ......................................................9 Colonial Auto Group ....................................36 Empire Auto Parts..........................................54 Enterprise ........................................................11 First Chrysler-Dodge-Jeep-Ram ..................45 First Ford ........................................................45 First Hyundai..................................................45 Ford Group ....................................................35 Honda Group..................................................42 Hyundai Group ..............................................48 IkotecUSA ......................................................19 Imperial Ford ..................................................37 Infiniti of Norwood........................................34 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Kia Group........................................................46 Linder’s, Inc. ..................................................58 Long Automotive Group ..........................OBC Mazda Group..................................................40 Mercedes-Benz of Shrewsbury ....................44 Mopar Group..................................................43 Nissan Group..................................................56 NORTHEAST® 2016 ......................................55 Polyvance ........................................................52 PPG ....................................................................3 Robertsons GMC Truck ................................51 Sarat Ford Lincoln..........................................51 Sentry Group ..................................................18 Subaru Group............................................38-39 Tasca Group ....................................................16 Toyota Group..................................................32 Village Auto Group........................................49 VW Group ......................................................50 Wagner BMW of Shrewsbury ......................44 Wagner Kia of Shrewsbury ..........................44 Wellesley Toyota/Scion ................................45 Wheel Collision Center ..................................9

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