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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com

VOLUME 54 NUMBER 1 | January 2024

2023-2025 OFFICERS PRESIDENT Ken Miller, 821 Collision, LLC (973) 949-3733 / kmiller@821collision.com

CONTENTS

COLLISION CHAIRMAN/ PAST PRESIDENT ATTENDING Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES

14 MECHANICAL CHAIRMAN’S MESSAGE

MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com

12 PRESIDENT’S MESSAGE

42 NJA ADVERTISERS’ INDEX

TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.com Brad Crawford, Livingston Collision, Inc. 973-992-5274 / livingston.collision@gmail.com Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com Sam Mikhail, Prestige Auto Body 908-294-1985 /prestige@goldcar.us Danielle Molina, Perfect Bodies Collision Center (973) 777-7881 / Danielle@PerfectBodiesCollision.com Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com

PRESIDENT/PUBLISHER Thomas Greco / thomas@grecopublishing.com VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio / alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk / chasidy@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com

LOCAL NEWS 16 Praxis v. Practice: NJ Law Seeks to Alleviate Vo-Tech Teacher Shortage by Chasidy Rae Sisk

AASP/NJ MEMBER PROFILE 18 Town 2 Autobody, Hamburg by Alana Quartuccio

NATIONAL NEWS 20 CREF’s 2024 School Benchmark Grants & Student Scholarship Applications Open

MEMBER PROFILE

20 2024 WIN Conference Registration Open LOCAL FEATURE 24 Auto Body Distributing Co. Holiday Party Highlights NATIONAL FEATURE 26 Exiting the Business: Will You Be Prepared When the Time Comes? by Alana Quartuccio

NATIONAL FEATURE

COVER STORY 32 Expanded Enlightenment: An Abundance of Education, Celebrities, the Industry’s Best Exhibitors & More! by Chasidy Rae Sisk AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 40 Wharton Insurance Briefs by Mario DeFilippis

COVER STORY

CONTRIBUTING EDITORS Charles Bryant • Mario DeFilippis • Dennis Cataldo • Mitch Portnoi • Ron Ananian • Keith Krehel • Jerry McNee • Jacquelyn Bauman

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 @grecopublishing www.grecopublishing.com NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/ NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2024 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www.istockphoto.com.

Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Phil Dolcemascolo Tom Elder Bob Everett Alicia Figurelli

Thomas Greco Dan Hawtin Rich Johnson Mike Kaufmann Wes Kearney Nick Kostakis Jim Kowalak Keith Krehel Joe Lubrano Michael Lovullo Jeff McDowell Sam Mikhail Ron Mucklow

George Petrask Russ Robson Jerry Russomano George Threlfall Anthony Trama Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

New Jersey Automotive | January 2024 | 7

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

In Dreams As I write this a few days after my 63rd birthday, dressed head to toe in the warmest clothing I could find, fighting a bad flu, not able to move, all I could basically do was lay here and run things through my mind, hoping to somehow fall asleep without coughing for a solid hour. As I rolled from one side to another… I focused on my career as the 10-time Super Bowl winning quarterback of the New York Giants. After winning the Heisman trophy twice as running back at Rutgers, I was drafted by the Giants in 1983. My rookie year, I set an NFL record, rushing for over 3,000 yards. Unfortunately, we lost in the playoffs to the Atlanta Falcons, but we had a promising future. The very next year, I was on a rushing tear again when starting quarterback Phil Simms was knocked out for the season. Amazingly, our backup quarterback got hurt on the very next play, and coach Bill Parcells asked me to finish the game at the position. After throwing for six touchdowns, Parcells decided to keep me at quarterback, and I led the Giants to their first-ever Super Bowl trophy with a win over Dan Marino and the Miami Dolphins. Simms was traded over that summer, I remained at quarterback, and the rest is history. Ten Super Bowls and 12 Most Valuable Player awards in 20 years until I handed the team over to

by THOMAS GRECO, PUBLISHER

Eli Manning… …then I rolled over and… I focused on my career as a 20-time All Star Major League Baseball Player. Drafted by the expansion New Jersey Diamonds, my first year pitching record was 47-3 with an ERA of .060. Oh, and I also hit 106 home runs as the center fielder. After 10 years and eight World Series titles, the Diamonds were sold and moved to Colorado. I refused to leave New Jersey and signed with the Mets, leading them to a World Championship in 1993. I spent the last 10 years of my career in Yankee pinstripes, adding nine more rings to my collection. They say my pitching and hitting records will never be broken… continued on pg. 38

Check out this month’s episode of the “Out of Body Experiences” podcast, with your host Greco Publishing’s Alicia Figurelli and featuring Eddie Day of Collision Restoration and Tom Greco. Join the trio as they discuss the 2023 New Jersey Automotive Survey! Please visit www.grecopublishing.com/podcastarchives/ for every episode!

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PRESIDENT’S MESSAGE

Taking It All In Starting a new position is always an exciting time, and taking over as AASP/NJ’s president is no different. At just under a month in, I’m still learning the new responsibilities and taking it all in as I go. As the new president of AASP/ NJ, I am frequently asked what my goals are and what I intend to do in my new role. I generally respond by saying I just want to listen for a while and I’ll let you know, but I do have some thoughts so far. We all subconsciously formulate opinions about things based on our life experiences, upbringing and education, creating our unique paradigms of the world. For those of you who do not know my background, I did not “grow up” in this industry, and subsequently, I have a slightly different paradigm than many who I speak to in the industry. I like to think that this is a good thing, as a fresh perspective can be beneficial in finding new

solutions to old problems and bringing meaningful change to our industry. For those who don’t know me, I am co-owner of a small independent shop in North Haledon. I’m a bit of a perfectionist and detail oriented. All of the perfectionists out there know that it is often equal parts curse and blessing, yet I am extremely fortunate to have a great team that understands my standards and does their very best to obtain our company goals. We strive to maintain high standards throughout the repair process with the goal of returning the vehicle to pre-loss condition to the best of reasonable human ability. That’s a high standard and an exceedingly difficult one to obtain. A repair “good enough” for the cars of yesterday is no longer good enough for the cars of today (and definitely not those of tomorrow). I applaud all shops that endeavor to meet this goal, as I know that much of the

12 | New Jersey Automotive | January 2024

by KEN MILLER

work goes unacknowledged and unappreciated, and I also want to lend understanding to those shops who feel as though, for whatever reason, they can’t. Whether you’re a small shop or a big MSO, it’s hard to implement changes. I’ve been there – I get it; however, I believe in the value of continuous improvement. Even a small improvement makes a big difference (it’s said that just a one percent improvement per day will put you 37 percent ahead after a year). As a perpetual student myself, I hope to share tools and a roadmap that shops can use, and I hope to inspire our top performing DRPs, MSOs and independents to do the same. Turn around and lend a hand to the guy behind you, as a high tide raises all boats. The ultimate goal, regardless of business model, is the complete, safe and quality repair of collision damaged vehicles for the people who have entrusted us to repair them. In closing, it’s important for me to understand, at a high level, the issues from a large cross-section of the membership to accurately represent all members moving forward. I’ve had a chance to hear from some of you, but I welcome open discussion and hope that if you see something, you will say something. Shoot me an email at kmiller@821collision.com, and let’s chat. Until next month!

NJA

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MECHANICAL CHAIRMAN’S MESSAGE

An Ex-Teacher’s Opinion: Shortcomings in Modern Education A long time ago, prior to starting my own business, I taught high school automotive shop in Colonia. To become a teacher, I went to Montclair State University (Montclair State College at the time) and studied industrial arts with a concentration in automotive technology. I worked at the JC Penney Auto Center in Wayne (now a Firestone) while in high school, college and later teaching high school. Looking back at my experience of four years in high school, four years teaching high school and 50 years in the automotive field, along with countless seminars in automotive management, I feel I have some legitimate criticism and recommendations. I ran these past my daughter, Lauren, who teaches, and my brother Walt, who taught for 35 years. 1. Recommendations: First and foremost, I would bring back shop classes as electives that an interested student could get exposed to at least at an introductory level.

Auto Shop - Most likely everyone will own and operate a car, and maybe some will pursue a career. Wood Shop – Houses, furniture, etc., still use wood, so we need people to “swing a hammer.” There are also a lot of DIY projects many would like to try their hand at. Drafting – Ok, now it’s called CAD (Computer Aided Design). Housing and buildings still need blueprints to direct the builders, so instead of using pencils, as in the past (and in my case, erasers) we now use computers to draft plans. Electrical - Any hands-on trade should be versed in electricity – I will borrow a line from my favorite TV show The Odd Couple: “What you don’t know can hurt you a whole bunch.” This certainly applies to electricity. Metal Shop - There are many skills to learn with metals, and to be safe while doing so, that should include welding.

BY KEITH KREHEL

There is a tremendous amount to know as a machinist, I suspect second to only an “A” auto mechanic. MG, TI and even stick welding could be offered. I really feel that most students should have access to shop classes. We still need people in the trades and should not rely on “importing” people to fill these jobs. 2. Economics: A basic understanding of how capitalism works and how well it works is sorely missing in schools and from what I see in the current generation. A comparison of types of governments is essential. I had a great History teacher in high school, and I still remember learning about the approximate months you had to work to “support” each type of system: capitalism, socialism and communism. Capitalism, despite its shortcomings, was and still is the winner, but a lot of people don’t know it. 3. Personal Finance: Some high schools require this now, but not all, and it was rare to find in the curriculum when I went to high school. Statistics vary, but about 60 percent of Americans live paycheck to paycheck. By one definition, this means a person with little to no savings, and if their income is interrupted (job loss), they are in big trouble…quickly. From what I have witnessed, being broke is usually more of a spending problem than an income problem. continued on pg. 39

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LOCAL NEWS

by CHASIDY RAE SISK

Praxis v. Practice: NJ Law Seeks to Alleviate Vo-Tech Teacher Shortage As shops seek to fill their facilities with qualified talent, the lament about the technician shortage has been heard from coast to coast for years, but rarely does anyone talk about a related problem that contributes to the lack of qualified talent available for body shops to hire: the teacher shortage! While it seems that there are fewer teachers filling classrooms each year in general, vo-tech schools seem to suffer the most from the dwindling profession. In fact, the lack of skilled trades teachers has led to several programs shutting down once their instructors retired simply because there was no one available to fill the empty role. Several auto body programs in New Jersey have been eliminated or forced to fuse with the automotive curriculum in recent years for this reason. Why are auto body teachers in such short supply? One of the challenges that many Jersey vo-tech schools face when looking to hire a teacher in the trades is the need for a new instructor to pass the Praxis before teaching in public schools. The Praxis certification exam, which tests for reading, writing and mathematics, is required to be a teacher in around half of this nation’s states; however, some states allow prospective educators to obtain their teaching license through alternative teacher certification programs. Thanks to Governor Phil Murphy’s P.L. 2021, c.420, signed into law in 2022 and which was supported by the NJ Education Association (NJEA), the Garden State recently became one of those states. According to a memo issued by the NJ Department of Education (DOE), candidates will be able to “demonstrate proficiency in the use of English language and mathematics through an alternate measure,” allowing “provisional CTE educators, who have met all other certification requirements, an alternate pathway to standard certification.” Career and technical educators would instead demonstrate their skills and acquire eligibility for certification based on a demonstrated, approved by the DOE, such as (but not limited to): • A portfolio of work products as approved by the superintendent of a candidate’s employing school district; • Obtainment of an occupational license/industry certificate; or • An industry certificate or registration. 16 | New Jersey Automotive | January 2024

Of course, there is still a provisional period before one can officially obtain certification – after all, it’s important to make sure that teaching is a right fit on both ends. But overall, the state’s decision appears to be a step in the right direction when it comes to filling the need for fresh talent in the collision repair industry. Students respond better to passionate teachers (here’s some proof: grecopublishing.com/nja0522localnews), and when teaching a skilled trade, it’s much more effective to actually possess that skill being taught. Prioritizing hands-on abilities over test-taking scores just makes sense in the trades where students need to learn by practicing techniques rather than jotting down theories on paper. “Most vocational instructors do not graduate college and go directly into teaching.We must first spend countless years mastering our trade, honing our skills and becoming subject matter experts,” Sussex County Vo-Tech Automotive Technology instructor Brian Ward wrote in the June 2021 edition of the NJEA Review. “During this time, we usually receive industry credentials, certifications and/ or professional licenses validating our knowledge and skills. The time needed to master the trade comes with a price: several years have gone by and what is current for individuals fresh out of college has become foreign to most trade professionals. “We have become experts in our fields, which include industry-related math, technical writing and reading skills but these may be far from what is assessed on a Praxis test,” he added, claiming, “The Praxis is a poor tool to predict vocational educator success.” Through the new alternate measure for CTE certification, that’s one less barrier for potential auto body teachers. Of course, vo-tech instructors are certainly facing other challenges. If you missed our twopart round table discussion with several NJ collision repair educators last year, follow this link and check it out at grecopublishing.com/nja0523localfeature and grecopublishing.com/new-jersey-automotivejune-2023. Learn more about the Alternate Route Program at nj.gov/education/certification/cte/alternate.shtml. For questions regarding the CTE basic skills alternate measure, contact the Office of Recruitment, Preparation and Certification at (609) 292-2070 or send an email to altroute@doe.nj.gov. NJA

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CREATING TOGETHER New Jersey Automotive | January 2024 | 17

by ALANA QUARTUCCIO

AASP/NJ MEMBER PROFILE

Town 2 Autobody, Hamburg The success behind Town 2 Autobody in Hamburg, NJ began with the strong roots the Pastore family has grown in the industry over the past several decades. The family has been in the collision repair business since 1956 when Joseph Pastore Sr. first opened Town Autobody in a small alley on Grove Street in Montclair, a business that is still going strong today. His children, Joseph Jr., Tina and Tom, all grew up around his business; the three siblings (and now their children) still remain in the collision repair industry via two separate shops. Tom Pastore opened Town 2 Autobody in Hamburg in 1989 and has been at the helm of that business for 34 years and counting. He recalls the days he and his siblings would ride their bikes over to their father’s shop to help out as teens, an activity that basically watered the seeds for all of them to continue in the business. “We’d help our father with

everything from lifting bumpers to answering phones if he had to run out and get paint. Eventually, my brother, Joseph Jr., got heavily involved with repairing the vehicles, and I was the office person who dealt with the phones and handled the insurance adjusters and customers.” The Montclair business grew and eventually settled on Grove Street where it remains today, owned by Tina and Joseph, Jr. whose son Kenny is beginning the process of taking over the business. Tom has plans to eventually follow in their footsteps and retire, but for now, he continues to work at the helm of Town 2 Autobody along with his two sons, Tom Jr. and Billy. A long standing member of AASP/NJ, Tom recalls his father’s involvement with association life back in the day. “My dad was one of the original guys,” he remembers. “When it was first decided to license auto body shops, he was one of the guys taking the bus down to attend

meetings in Trenton.” He sees great value in being an AASP/NJ member and keeping up with their events. Being involved allows one to “see all the struggles are exactly the same. It’s not just you. You come out of these meetings invigorated. I enjoy listening to those who have put a lot of research into things, and then you take it back to the shop and pass it on to your employees.” Tom has much to be proud of as the shop has remained successful for 34 years and counting. In fact, Town 2 Autobody made New Jersey Automotive’s Top 10 Body Shop list in 2023 (see grecopublishing. com/new-jersey-automotivejanuary-2023). The longtime body shop owner is also proud to say he has zero employee turnover. “We don’t have a problem with continued on pg. 36

18 | New Jersey Automotive | January 2024

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Jack Daniels Audi of Upper Saddle River 243 Route 17 Upper Saddle River, NJ 07458 201.252.1500 Fax: 201.254.1552 tbabcock@jackdanielsmotors.com www.jackdanielsmotors.com

Audi Bridgewater 701 Route 202-206 N Bridgewater, NJ 08807 929.600.9156 Fax: 908.595.0237 parts@audibridgewater.com www.audibridgewater.com

New Jersey Automotive | January 2024 | 19

NATIONAL NEWS

CREF’s 2024 School Benchmark Grants and Student Scholarship Applications Open Collision repair facilities around the country are in desperate need of new talent to address the ongoing workforce shortage, yet a lack of qualified young professionals are entering the industry for many reasons. Many schools’ collision programs are underfunded, and post-secondary students seeking to enhance their skills and knowledge often struggle to afford tuition and tools. The Collision Repair Education Foundation (CREF) addresses these needs through its Collision School Career Readiness Benchmark Grants and Student Scholarship awards, thanks to support from many generous industry donors and sponsors. In 2023, CREF awarded $678,500 in grants to over

Sheridan Technical College (Hollywood, FL) was one of over 100 schools awarded with a CREF Benchmark Grant in 2023.

100 schools. The Benchmark Grants recognize those programs that excel at educating students but which require additional financial assistance due to constrained school budgets, providing funds to purchase the tools, equipment and supplies necessary to enhance their students’ learning experience and elevate the caliber of their graduates. The 2023 Student Scholarships benefitted nearly 90 students with over $130,000 awarded in financial assistance to ensure those students were able to continue their education, preparing them to pursue a successful career in body shops around the country. Applications for CREF’s 2024 Student Scholarships are now open, with a deadline of March 8, 2024. Applications for CREF’s 2024 School Benchmark Grants are open through June 28, 2024. To apply for a Benchmark Grant or Student Scholarship, visit bit.ly/CREFapply. Learn more about supporting CREF’s efforts to promote the industry to future generations at CollisionEducationFoundation.org. NJA

2024 WIN Conference Registration Open The Women’s Industry Network (WIN) has announced that registration is now open for one of the collision repair industry’s most anticipated leadership and management forums: the 2024 WIN Conference. This year’s conference, featuring the theme of “Dream Out Loud,” will be May 6-8, 2024, held at the Hyatt Regency Newport Beach, CA. “We had a record 236 in-person attendees and another 66 people joining us virtually at the 2023 WIN Conference in San Antonio, and we know that our 2024 conference will be the biggest and best yet,” said Blair Womble, WIN 2024 Conference Chair. WIN members registering by the early bird deadline of March 1 will receive a discounted rate of $575; after 20 | New Jersey Automotive | January 2024

that, the member cost increases to $680. The ticket rate for nonmembers is $725. Registration for in-person attendees closes on April 24. Anyone preferring to join virtually may do so for $250. Interested attendees can join WIN as a professional member any time for just $95, and then take advantage of the discounted attendance if they join before March 1. More details about speakers, breakouts and conference curriculum are coming soon. To register for the conference or to learn more about WIN, visit NJA womensindustrynetwork.com.

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New Jersey Automotive | January 2024 | 21

22 | New Jersey Automotive | January 2024

New Jersey Automotive | January 2024 | 23

LOCAL NEWS

Auto Body Distributing Co. Holiday Party Highlights

ABD extends a special thanks to its generous prize sponsors Acme Nissan Ciocca Parts Warehouse Conicelli Genesis Conicelli Nissan Conicelli Toyota Dover Dodge Gerber RV 24 | New Jersey Automotive | January 2024

Hackensack Toyota Hummel and Associates Indasa Lexus of Bridgewater Lexus of Edison Manhattan BMW & Mini Maxon Hyundai & Mazda Mercedes Benz of Newton

Neilson Chevrolet Nucar Wholesale Parts Distributors Parsippany Jaguar Roberlo Saint-Gobain/Norton Sherwin Williams/Debeer Sussex Honda NJA

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EXHIBITOR REGISTRATION NOW OPEN! AASPNJNORTHEAST.COM FOR INFO New Jersey Automotive | January 2024 | 25

NATIONAL FEATURE

Every shop owner spends years pouring blood from their veins and tears from their eyes as they strive to make their business successful. The average owner spends decades running their business. Throughout the years, it not only becomes their main source of income, but it’s their livelihood too. It’s their whole world. Walking away from that is not an easy thing. When the time comes to exit and sell or pass the business on to a family member or employee, it’s going to take a lot more than 26 | New Jersey Automotive | January 2024

putting up a “For Sale” sign. In fact, exiting the business is not a process that can take years, it should take years, according to some industry experts. “It’s never too early to begin thinking about it, and, as a matter of fact, every move that a shop owner makes should have succession in mind,” suggests certified exit planner Matt DiFrancesco, whose company High Lift Financial specializes in working solely with collision

by ALANA QUARTUCCIO

repair businesses. “Shop owners need to put the vehicle in place, so when the time comes, they are able to exit on their own terms.” Shop owners come to him when they are at the point of thinking about transition, and what stage they are at varies per individual. “I get some who are maybe five years out, some who need to get out now and some who aren’t looking to get out but want to begin to put the plans in place.”

According to DiFrancesco, the first thing all shop owners need to think about is what they want their posttransition/exit life to look like. “If they don’t have a picture of what that looks like, it makes it difficult to be able to structure a plan according to what they want. The starting point comes down to figuring out if they want to fully exit or still be involved but not with the day-to-day operations as they want the flexibility to travel, play golf or go hunting. Once they know what that life looks like, we can start to build out the different ways we can structure a transition plan.” Consolidation Coach’s Laura Gay agrees that it’s never too early to have exit plans in mind. “I think most shop owners fall into the category of not wanting to deal with it until the time comes,” she observes. “Obviously, that’s not ideal, but it’s not a deal killer either. There are plenty of shop owners who are just focused on running their business the best they can, being the most efficient. If you are running a good shop from top to bottom, that’s really what you need to focus on because at the end of the day, it comes down to having a really nice, well-run facility. That is what brings the dollars.” Maylan Newton from Educational Seminars Institute believes that one should start thinking about how they will exit their business as soon as the day they purchase it. He suggests a minimum of five years is needed to prepare, but he recommends, “If you bought your shop today, I’d tell you to pick a day 20 or 30 years in the future and make that the day you plan to stop owning or working on that business. “It’s never too early to plan, but in many cases, it can be too late,” adds Newton. “For most people in our industry, the exit strategy winds up being death, and they leave behind a business that has no value to their heirs because they didn’t build a business that stands on its own and is therefore sellable.” What is the first thing a shop owner should keep in mind when they make the decision to get out? “I think the first thing to keep in mind is what your strategy is going to be,” says Gay. “Are you going to do it alone, or are you going to get someone to help you? If you do it alone, you have to come up with your own internal strategies on how to handle it, specifically confidentiality and how you are going to look at what the different buyers are and how to make sure you don’t leave money on the table. If you decide you want someone to help you, you need an understanding of what the business is worth versus what you can get for continued on pg. 28 New Jersey Automotive | January 2024 | 27

NATIONAL FEATURE continued from pg. 27

“

one is able to walk away from the business for 60 days and it’s still functioning, the business will survive. If not, it is not the time to sell. When the time is right, most will find that keeping the real estate as an income stream is the right thing to do. According to DiFrancesco, “If you go to a third party, especially with consolidators, they want the owners to maintain the real estate, and that remains a cash flow stream. On insider sales, I like to see them hold on to the real estate as an income stream, but also if the owner has children who are not involved with the business, the real estate can be part of their legacy. I try to maintain that family unit, so if there is one child getting the business, the others don’t feel slighted and you can structure the real estate to be able to create a fair distribution and maintain that family harmony.” What type of entity one chooses to sell the business to can have a significant impact on how much the property is worth, according to Gay.

“

it. That’s a big disparity. You can probably get a lot more for it than what it’s worth in a lot of markets, especially in the northeast. It’s just getting red hot with consolidation, and more and more buyers are entering the market. The important part is not leaving money on the table, and that is easy to do if you don’t know what you are doing.” Selling is just one option as many other forms of making an exit exist. “There are three options,” offers DiFrancesco. “They can do an internal succession to a family member or an employee. They can do a third-party sale, whether it’s to a consolidator or a small MSO, or they can look for another third-party buyer in the market who may be looking to acquire shops. There is even what could be called a fourth option where one does an internal succession, but does not completely step away. The owner still maintains some control, but they give equity to employees so they no longer have to be involved with the day-to-day stuff. That is a lifestyle exit where

F o r m o s t p e o p l e i n o u r i n d u s t r y, t h e e x i t s t r a t e g y w i n d s u p b e i n g d e a t h , a n d t h e y l e a ve b e h i n d a b u s i n e s s t h a t h a s n o va l u e t o t h e i r h e i r s b e c a u s e they didn’t build a business that stands on its own and is therefore sellable.

they still have control over the business but no longer participate as part of the daily operation. That equity can be structured either as a stock purchase program for key employees or an ESOP (employer stock option program).” So, how does a business owner know if they are ready to move on? According to Newton, it’s important for shop owners to take a look at their business and see what is most valuable. Is it the business itself or him or herself – the owner. If the owner is the most valuable part of the business, a lot of work will need to be done to change that so the business can be sellable. “They will need to build the business so they – the shop owner – won’t be required to be there.” Staff has to be trained to know all the processes, policies and procedures. There should be an operations manual outlining how the business functions so it can be profitable “because people who buy businesses want the ability to profit.” Newton says if 28 | New Jersey Automotive | January 2024

“If you lease it to an individual or a private entity, the property value will be significantly different.” If someone were to lease to a big name consolidator, the value of the property will go up which may be food for thought when considering leasing to an independent which could result in “leaving money on the table.” Confidentiality is another thing to consider. One doesn’t want to alarm their staff by talking about their exit plans too early in the process. DiFrancesco suggests waiting until all one’s ducks are in a row so that conversations don’t begin prematurely. “You’d want to go to the successors first and then talk to your employees once the plan is determined and you know what directions things will go in.” “Hopefully you have already planted the seed for them,” advises Newton who stresses the importance of the business being able to operate without the owner present daily. “When you aren’t the main person

anymore, it makes it easier on your staff to tell them you plan to retire.” “You don’t want to create unnecessary anxiety, turmoil or loss of production with something that may not occur,” Gay emphasizes the need to make sure the time is right before announcing your plans. “The announcement should be thoughtfully decided upon between the buyer and seller. “It’s a personal relationship,” she continues, regarding the seller’s relationship with his or her team. “Those people made him or her who he or she is. I was close to my employees. I still am and talk to them often. The buyer is buying your people, what you created, and it’s very important it’s done thoughtfully.” Ultimately, it’s about being able to walk away from one’s business in the most profitable manner one can. Many may not be aware of the true value of their business, so it’s important to have an assessment done as a first step. “You should always do a valuation, and not just the value of the business but what your free cash flow is in the business,” suggests DiFrancesco. “That’s what a consolidator or a third-party buyer will look

at since they want to buy a business that’s profitable. With an inside transfer, you can utilize free cash flow to fund that transition, so getting that valuation as soon as possible is a key first step.” Newton emphasizes the role that having everything properly documented – from wills and a trust, tax information, operation manuals, etc. – plays as it will make the business attractive and more valuable. “The more documentation you do today, the more profitable your business becomes in five, 10, 20 years.” “You get one chance to do this, so you don’t want to screw it up,” Gay summarizes. “Make sure you are doing all the right things, and make sure you don’t leave money on the table. It’s so easy to do that if you don’t know what you are doing, you can do so without even knowing that you did.”

NJA

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COVER STORY

EXPANDED ENLIGHTENMENT: AN ABUNDANCE OF EDUCATION, CELEBRITIES, THE INDUSTRY’S BEST EXHIBITORS & MORE!

Friday night, Saturday and Sunday…Automotive and collision repair professionals have been marking their calendar for a full weekend of the best this industry has to offer at the NORTHEAST® Automotive Services Show for nearly half a century. From world-class trainers sharing insights on the most relevant topics to over 100 exhibitors showcasing the latest tools, products, equipment and services on the 65,000 square foot show floor at the Meadowlands Exposition Center (MEC) in Secaucus, NJ, the largest regional automotive show has a lot to offer in a relatively short amount of time. Recent years have seen the addition of the introduction of the Bodywork Bowl Competition and a chance to celebrate tomorrow’s talent with the association’s Young Technician of the Year Awards. But NORTHEAST 2024 promises even more than ever before! 32 | New Jersey Automotive | January 2024

Although the show is scheduled for March 15-17, attendees will also want to mark their calendars for the 14th since AASP/NJ is enhancing its educational offerings

David Luehr (Elite Shop Solutions)

by CHASIDY RAE SISK

by adding a full-day workshop on Thursday with David Luehr (Elite Body Shop Solutions), plus the classrooms will open early Friday morning for the first ever Collision Advice NORTHEAST Workshops featuring industry icon Mike Anderson and his team.

Mike Anderson (Collision Advice)

But that’s not all…NORTHEAST wouldn’t be NORTHEAST without a little extra fun and a chance for a celebrity sighting or two. Fans of MotorTrend TV’s Bitchin’ Rides won’t want to miss the chance to meet Dave Kindig at Gold Sponsor AkzoNobel’s booth on Friday and Saturday!

Dave Kindig

“This is my first time attending NORTHEAST, so I am excited to see what the show has to offer,” Kindig says. “I am also excited to be joining AkzoNobel this year, celebrating our continued partnership together, as I am now the brand ambassador for their flagship premium brand Sikkens.” “AkzoNobel is excited to be bringing Dave Kindig to the NORTHEAST show, star of MotorTrend TV show Bitchin’ Rides and brand ambassador for our Sikkens and Modern Classikk brands, who will be doing autograph signings in our booth Friday and Saturday,” shares Jen

Poliski (AkzoNobel). She also looks forward to “seeing our partners and customers at the show and getting the opportunity to meet others through networking at NORTHEAST as a Gold Sponsor. We’ll also be performing Carbeat demonstrations to show customers how to reduce cycle time, improve processes and open communication lines in shop operations.” It may be Kindig’s first time at NORTHEAST, but past experience shows that one visit to Secaucus is never enough, as demonstrated by Luehr’s return. “I had a blast last year!” he shares. “I attend industry events around the world, and it is hard to attend them all, so I really try to attend ones that are fun and where the shop owners are willing to take action to improve their businesses instead of sitting around complaining. I really love the people up there: the shops, vendors and the incredible team who puts this event on every year. I am so honored to be asked back to NORTHEAST, and I am really excited to bring our Elite brand of education to shops that can really benefit from it.” During Luehr’s workshop on Thursday, “Know Your Numbers,” shop owners, managers and department leaders will learn which metrics matter most and how to take daily action toward achieving higher profits. Training covers budgeting, forecasting, understanding a financial statement and so much more, all included in a workbook to help build an actionable plan to implement upon your return to the shop. “As a former collision business owner, I found myself unclear on how to make money while providing the best possible repairs and without working super long hours,” Luehr explains his motives for developing the course. “Later on, I discovered a handful of metrics and habits that – when focused on – could massively drive profitability. Shop owners typically work way too hard for the financial returns they get. In ‘Know Your Numbers,’ attendees will learn how to systematically create a business model and a simple set of daily practices that practically ensure much higher profitability. “My promise is simple,” he adds. “I will show attendees how to devise a written strategy to reach a 20 percent net profit, and if anyone who attends doesn’t believe it will work or doesn’t find value in our training, I will give them their money back on the spot!” Hours before the trade show floor opens on Friday continued on pg. 34 New Jersey Automotive | January 2024 | 33

COVER STORY continued from pg. 33

evening, Anderson and Sheryl Driggers will be bringing Collision Advice’s renowned brand of enlightenment. Looking to deliver an extraordinary customer experience? Driggers’ “Game Changer CSR” program focuses on how to best communicate with customers based on their personality, allowing customer service representatives to positively transform their relationships with everyone who enters the shop. “In today’s market, we need to be educating our guests when they walk through the door,” according to Driggers. “They’re coming to us during a traumatic time; they just had an accident, so their car – typically their second largest investment – is damaged, and they typically have a lot of negative emotions associated with what’s happening. As collision repair professionals, it’s important to meet them where they are, so we can effectively help them navigate the claims process and supportively guide them through the repair process.” Driggers is very excited about her first time attending NORTHEAST. “I’ve heard a lot of great things over the years; I’ve been told this is one of the conferences to be at, so I’m excited that I was invited to attend with Collision Advice as an educator, and I’m also looking forward to meeting new repairers during the show.” Whether you’ve attended Anderson’s “100 Percent Disassembly” in the past or not, this workshop is sure to offer a refresher on creating the right shop culture to support 100 percent disassembly. “One of the most common things I see while traveling over 300 days a year and visiting so many shops is that most people believe they’re doing 100 percent disassembly, but they’re actually doing more like 80 or 90 percent disassembly,” 34 | New Jersey Automotive | January 2024

Anderson points out. “Repairers need to realize 100 percent disassembly is the foundation for so much. It’s necessary and required to write an accurate repair plan; it’s critical for capturing all the items that can be removed and installed, improving the quality of your repair plan and minimizing supplements. It’s also critical to the parts mirror-matching process. If we don’t remove everything, it’s much more difficult for the parts person to mirror-match the parts.” Disassembly is actually vital for all stakeholders, according to Anderson. “The customer service person can set more accurate delivery expectations for the customer, and it’s critical when we order parts from our vendor. Really, it’s critical to everything we do and to all stakeholders. One of the most important things I want to impart to everyone who attends this class: When I had my shops, a big mistake I made would be to tell people what to remove instead of telling them WHY it needs to be removed. If we can help our team understand WHY something needs to be removed during 100 percent disassembly, it’s more sustainable, so I’m very excited to share some insights on this subject with NORTHEAST attendees.” Everyone who attends Anderson’s class will also receive a copy of the Collision Advice 100 percent disassembly wall chart/poster to hang in their shops. NORTHEAST 2024 will not be Anderson’s first, second or even tenth time attending the show. In fact, he’s been a pretty consistent presence for quite some time, which begs the question…What keeps him coming back year after year? “It’s an opportunity to connect and network with the

“

people I’ve seen over the years,” he shares. “I get to rekindle old relationships and friendships as well as build new ones. I’m looking forward to seeing a lot of my friends who are still in the industry and also to networking to meet new people. A lot of great speakers present each year, so I enjoy sitting in on some of the other classes as well to help sharpen my saw and stay relevant. In addition to raising awareness about safe repairs, I hope to support and encourage everybody.” Anderson often encourages collision repair professionals to take the time away from their shops to invest in themselves by attending in-person events like NORTHEAST. “I hear people say they get a lot of industry education online, on social media and through trade publications, and while those things have their place, nothing beats the personal connection and camaraderie that you experience at live events. I like to compare it to watching church on TV; I might learn something, but that TV cannot hug you and lift your spirits like the sweet lady in the next pew. NORTHEAST also offers a great chance to disconnect from the day to day operations of the business and allows us all to see what’s coming down the pipe in terms of tools and equipment.” It’s likely that Anderson’s and Luehr’s names will also appear on the NORTHEAST 2024 educational agenda during the hours the trade show is open, but attendees may be surprised to see quite a few other names affiliated with Collision Advice. “There are 16 other people on the Collision Advice team now, and we’ve got experts who teach estimatics, CSR training and even accounting with our three financial coaches,” Anderson reveals. “We’ve really tried to diversify to become an all-encompassing consulting company which allows us the opportunity to reach more people, impact more lives and make a bigger difference than ever before. I’m excited to introduce some of my team members to the NORTHEAST experience and am hopeful that they will have the opportunity to make new friends, enjoy learning more about the products available and attend other guest speakers’ sessions so they can grow as well.” Luehr agrees that the quality of presenters at NORTHEAST is something marvelous to behold. “NORTHEAST does an amazing job at attracting the best experts in the industry to provide world-class education,” he says, recalling,”I remember sitting on a huge panel last year with guys like Mike Anderson, and as I looked around at all of them, I thought, ‘Wow, the amount of expertise in this room is astounding!’ The attendees were treated to

This is my first time attending NORTHEAST, so I am excited to see what the show has to offer.

- D a ve K i n d i g

the best of the best! Shop leaders really shouldn’t miss education like this!” The Collision Advice NORTHEAST Workshops will conclude as the trade show floor opens at 5pm on Friday…just as things REALLY get started. What else should you expect? AASP/NJ’s flagship event typically draws over 6,000 industry professionals every March with shop owners, technicians, painters, estimators, suppliers and others enjoying a plethora of educational opportunities, one-on-one time with vendors and a chance to hobnob with industry peers and friends, so you never know what you might learn or who you might see. Sure, Kindig will be there, but past years have seen celebrities from a multitude of television shows, athletic teams and more, and as the show keeps getting bigger and better, it’s safe to assume it’s going to continue attracting big names you’ll certainly want to meet! Don’t miss your chance to hobnob with the best! Preregistration for NORTHEAST 2024 is now open. To preregister and to stay up to date on all the latest information and announcements, visit aaspnjnortheast.com, and stay tuned to New Jersey Automotive for even more details about the educational agenda, exhibitors you’ll want to visit and possibly a few extras you’ll want to know about!

NJA

New Jersey Automotive | January 2024 | 35

AASP/NJ MEMBER PROFILE continued from pg. 18

help, and I know that’s a rare thing,” he shares. He is proud to say that when Town 2 Autobody hires people, they typically don’t quit; they leave when they retire. “Once they get past the first seven to 10 days, they will remain here for 15 or 20 years.” He believes strongly in fixing vehicles the way manufacturers want them to be repaired and will “fight tooth and nail” when the insurers, aka the bill payer, refuses to support this necessity. Like most shop owners, he agrees it’s a sad and frustrating situation. He compared it to the medical field, where a doctor will tell a patient to get XYX testing due to a diagnosis, only in this case, the insurance company will refuse that diagnosis and testing. Tom believes in constantly putting money back into his business, recently adding a new oversized paint booth. They strive to be environmentally friendly and recycle as much as possible. Their success is attributed to their customer care and quality service. To this day, he follows what his father Joseph (now 90 years old and long since retired) taught him early on. “My father told me to just concentrate on satisfying your customers. Don’t worry about the

36 | New Jersey Automotive | January 2024

competition. Just take care of your customers, and they will keep coming back.” And that they do. For the past 30 years, Town 2 Autobody remains a trusted police towing service in Sussex County. They are a relied-upon resource for all automotive needs in their area of Sussex County. Tom sees many repeat customers who come in for maintenance work like oil changes telling him they are the only shop they trust. When asked what he has gained from working in collision repair over having chosen another profession, Tom says it’s definitely the friendships he’s made in the business. As he begins to look at the future he is just trying to get his sons to enjoy the business as much as possible, teaching them to be smart and careful in the process, while he begins to take three-day weekends and considers stepping into retirement.

NJA

New Jersey Automotive | January 2024 | 37

OUT OF BODY (AND MECHANICAL) EXPERIENCES continued from pg. 10

…then I rolled over and… I focused on my career as Heavyweight Champion of the World. I was an amateur when Muhammed Ali, spurred on by the recent movie Rocky, decided he wanted to fight a real-life unknown “Italian Stallion.” People scoffed when they put me in with “The Greatest,” but they weren’t laughing when I knocked him out in the second round. After a quick rematch where I duplicated the feat (this time in the sixth round), I started my 20-year rein. Ken Norton? First round KO. Larry Holmes? Fifth round KO. Mike Tyson? Third

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round KO. Twice. I beat them all until I got to 48-0. My 49th fight would be my last so that I could say I retired with the same record as my dad’s favorite athlete, Rocky Marciano. I stopped Lennox Lewis on cuts in the fourth round… …then I rolled over and… I focused on my career as a rock star. At 15, I started my band, the Memories, and our 1976 debut album sold over 10 million copies. Between 1976 and 1980, we released five critically acclaimed records and sold out arenas around the country. Unfortunately, since I wrote all the songs, played lead guitar and sang lead vocals, my bandmates became jealous, and we broke up. I launched my solo career shortly after and have released 17 charttopping albums including my latest duets compilation featuring Taylor Swift. Last time I checked, only the Beatles and Elvis have sold more records than me. Of course, being that successful as a rock star led to a movie career… Crap. I woke up. Honest to God, I wouldn’t trade the life I’ve had for any of those fantasies. No one has been more blessed than me. There isn’t enough fame or money in the world to replace the people I love. Here’s hoping that this coming year you get a chance to experience even just a tiny bit of the blessings I’ve experienced. Wishing you and yours a healthy, happy New Year!

NJA

38 | New Jersey Automotive | January 2024

MECHANICAL CHAIRMAN’S MESSAGE continued from pg. 14

My two stepdaughters could always finish my pitch – “It’s not how much you make; it’s how you spend it.” Making a budget and living within your means is an important lifestyle choice. Being broke while working is rough, but being broke and retired is worse. Statistically, about half of the population approaching retirement does not have any savings. FYI, when I was 16 and making $1.65 an hour (10 cents below minimum wage), I always carried a minimum of $20 in my wallet – good judgment in the 70s especially because we didn’t have debit cards. Despite working for this wage at the time, I was not broke.

had a 26 BMI, which means I am one of the 74 percent overweight people. I think a good idea is a basic nutrition understanding so we realize what we are doing when we don’t eat a healthy diet and exercise. I love fast food; I just don’t eat it too often. Just for the fun of it, you may find your BMI using an app on your cell

phone, and you won’t have to tell me the results! ‘Til next time… Keith

NJA

4. Nutrition Back in my day, I can still recall my gym teacher strictly being a ball and whistle guy. After taking attendance and proper clothing inspection (athletic supporter everyone?), he would sound the whistle and throw out a ball; 40 minutes later, he would sound the whistle again and collect the ball to signal the end of gym class. Quite honestly, I cringed when he attempted to teach a lesson on first aid for one marking period. We did not get much out of that class other than the hope he was not around when we got hurt, LOL. I don’t know statistics on what percentage of people require first aid; however, I do believe a better class would be on nutrition and not taught by my gym teacher, but by a certified nutritionist. (What do you think, Katie?) While many of us Americans (hopefully) won’t need to be saved, there is about a 74 percent chance of being overweight, and in that number, a 43 percent chance of being obese – not healthy. FYI, I ran my BMI which is used to indicate healthy, overweight, obese and morbidly obese weights. I New Jersey Automotive | January 2024 | 39

ARANJ

ARANJ Board of Directors David Yeager - EL & M Auto (800) 624-2266 / elandmauto@aol.com Ed Silipena - American II Autos (609) 965-0987 / esilipena@yahoo.com Norm Vachon - Port Murray Auto (908) 689-3152 / portmurrayauto@yahoo.com Dillon Rinkens - East Brunswick Auto (732) 254-6501 / ebautonj@comcast.net

ARANJ Officers

President - Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 / aceautonj@comcast.net 1st Vice President - Daryl Carman Lentini Auto Salvage (908) 782-4440 / darryl@las-parts.coms 2nd Vice President - Mike Ronayne Tilghmans Auto Parts (609) 723-7469 / tilghmans@snip.net

The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs The New Jersey Workers’ Compensation Rating and Inspection Bureau released the newly promulgated rates for 2024: • Auto Dismantling increased from $15.12 to $15.98. • Auto Body Repair decreased from $3.51 to $3.21. • Auto Repair decreased from $5.43 to $4.98. • Clerical remained the same at $0.16. • Iron or Steel Scrap Dealer decreased from $9.07 to $8.08. • Salesperson decreased from $0.40 to $0.38. • Store: Retail Accessories (Counterperson) increased from $4.29 to $4.39. • PLEASE NOTE: The Store (Counterperson) code must be approved prior to use. The operation must be physically separated from salvage and parts storage and must not have any interchange of labor. This code does not include drivers. Also, the executive officers’ annual minimum payroll is $45,760, and the annual maximum payroll is $168,480. Lastly, if your insurance policy is written in the New Jersey State Plan, you are going to be charged an additional 20 percent (minimum) for the Plan Premium Adjustment Program and will lose the Premium Discount. As always, if you have any questions regarding your insurance coverage, please contact us.

Past President - Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 / dirkesauto@gmail.com

NJA

Mario DeFilippis AAI Vice President Wharton Insurance Group

800-221-0003 (ext. 1320) (908) 513-8588 (cell)

mdefilippis@whartoninsurance.com

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FIT AND FINISH IS NO PLACE TO GET CREATIVE. 40 | New Jersey Automotive | January 2024

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1.800.292.RIMS (7467) 42 | New Jersey Automotive | January 2024

World Insurance Associates........... 13

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New Jersey Automotive | January 2024 | 43

44 | New Jersey Automotive | January 2024