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4 | New Jersey Automotive | April 2022
New Jersey Automotive | May 2022 | 5
CALL: 1-800-221-1256
You can find us at:
6 | New Jersey Automotive | May 2022
dmangin@flemington.com
P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2021 - 2023 OFFICERS PRESIDENT Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net COLLISION CHAIRMAN Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com
VOLUME 52 NUMBER 5 | May 2022
CONTENTS 10 OUT OF BODY (AND MECHANICAL) EXPERIENCES
16 EXECUTIVE DIRECTOR’S MESSAGE
12 PRESIDENT’S MESSAGE
42 NJA ADVERTISERS’ INDEX
TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com
14 MECHANICAL CHAIRMAN’S MESSAGE
SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com
LOCAL NEWS
BOARD 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 Sam Mikhail, Prestige Auto Body 908-294-1985 /prestige@goldcar.us Ken Miller, 821 Collision, LLC (973) 949-3733 / kmiller@821collision.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 PAST PRESIDENT ATTENDING Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com
PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / 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
20 Passion Breeds Passion: New Teacher Breathes Life into Auto Body Program by Chasidy Rae Sisk
FEATURE STORY
24 Does the Consumer Even Care? by Alana Quartuccio Bonillo & Chasidy Rae Sisk
NATIONAL NEWS
28 To Retire or Not to Retire: Audi’s Rich Maniscalco Debates What Retirement Looks Like by Chasidy Rae Sisk
COVER STORY
32 Young Technicians Shine at NJ SkillsUSA State Championships by Alana Quartuccio Bonillo
INDUSTRY UPDATE
37 TGP Senior Vice President Alicia Figurelli Honored Among Women’s Industry Network’s 2022 Most Influential Women
AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 41 Wharton Insurance Briefs by Mario DeFilippis
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
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 © 2022 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 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 Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
Mad Maxi by THOMAS GRECO, PUBLISHER There are hundreds of moving parts taking place when you manage any trade show, and of course, the NORTHEAST® show is no different when it comes to that. Although most of the fires you wind up putting out are things you may not have expected, they are usually not the LAST thing you could possibly think of. Until now. In the over three decades I have been involved with the show, I have seen everything from a person passing away after having a heart attack at his booth to blizzards to hurricanes causing power outages to an entire second floor without heat. None of those things were on our minds prior to the shows, and at the time, we dealt with them as best as we could; however, this year…it was a little closer (and I mean CLOSE) to home. I have only missed one NORTHEAST in all those years – and it took a heart attack and surgery to keep me away. This year wasn’t quite surgery, and it didn’t keep me away but… I woke up on the Saturday of the show around 8am, hoping to get to the Meadowlands Exposition Center by 9am. I crawled out of bed (it WAS 8am!), took a
shower and headed to the sink to brush my teeth, take my pills, etc. As I was brushing, I looked in the mirror and noticed a blood stain on the towel around my neck. Then I looked down and saw a pool of blood on the rug beneath me. Now, I don’t know if it’s a guy thing or what, but the first thing I checked was my, well, you know. All good there. But then I reached for my, well, let me just say the word “vasectomy,” and you’ll get the idea. My hand came up covered in blood. On a normal day, I might have fainted right there and then. But it was 8am, so I still must have been half asleep because I calmly walked back to the shower to see where I must have cut myself. But the shower was clear. No blood anywhere. I grabbed the towel from my neck and held it to the area, hoping the pressure would stop the flow. Walking gingerly to the doorway, I called out for my wife. Silence. I yelled a little louder. Silence. She finally came upstairs, saw the towel now soaked with blood and asked what the hell was happening. Now look. Anyone who knows me knows damn well that there is no way I can see that area clearly. Let’s be honest, I probably haven’t seen it in a decade. There’s a huge gut in the way. But my wonderful wife told me to lay down, and she performed the inspection. Apparently, there was a small cut that was gushing blood. I held a new towel with one hand and applied pressure, figuring it would slow it down. With my other hand, I used my phone to look up how to seal the wound. Turns out that area of the body is very susceptible to bleeding due to the high amount of capillaries (or something like that). Add the fact that I am on blood thinners and here we were with a geyser on a geezer. After a few minutes, I tried to get dressed, but before I even got my pants on, my underwear was soaked. So, back on the bed I went. I asked my wife to run out and get some liquid bandages, hoping that they would work. It was 9am. While she was gone, I texted Alicia: “I think I’m going to be a little late. I’ll get there as soon as I can.” “Okay. Is anything wrong?” “Well…” I had to be honest with her. She’s my partner. And she gave the predictable answer: “What the f#$k???” As always, she kept everything running smoothly while I tried to figure out how to avoid needing a transfusion. My wife returned with the liquid bandages. I applied them, jumped up and once again tried to get continued on pg. 38
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PRESIDENT’S MESSAGE
Locking the Fence to Keep Honest People Out As consumers, each of us must purchase vehicle insurance. It’s mandated by law. The law also establishes rules and regulations to monitor insurers’ actions, but insurers constantly step over that line in the sand; they’re always pushing the envelope to lower costs - and they often do it by limiting the reimbursement amount they pay to the body shops repairing our mutual customers’ vehicles. Insurers believe they’re entitled to a fair and reasonable wage for the work they do, yet they refuse to provide adequate compensation to those of us who break our backs every day to perform the actual repairs because they’ve turned the claims center into a profit center. (If you haven’t read Delay, Deny, Defend: Why Insurance Companies Don’t Pay Claims and What You Can Do About It by Jay M. Feinman, I highly recommend it.) Still, many body shops expect insurers to play fair! Repairers want to think that the insurance appraiser is their friend - and sure, they may throw you a bone every now and then, but at the end of the day, how much meat is left on that bone? If you don’t have any problems with insurance companies, I’d hazard a guess that you’re giving stuff away; they aren’t going to push back on you when they’re winning. Trusting another industry to look out for ours is like installing a lock…It only keeps honest people out. It’s a dog eat dog world, and collision repairers need to recognize that we are the professionals in charge of restoring that customer’s vehicle to its pre-accident condition, and ultimately, we own that repair for the rest of that car’s life. If we all started to take control of our businesses by determining our cost of doing business and establishing prices based on those actual costs, our industry would make positive strides toward collecting a fair Labor Rate. We’ve seen it happen in other parts of the country where shops have gotten involved and stood up for what’s right, and now, they’re collecting $15 or $20 more per hour - unlike the lousy $1 raise we recently got from insurers in the tri-state market.
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by JERRY MCNEE
Those shops established different rates for various operations because shops finally put their foot down. They realized they can’t afford to continue offering insurance companies the same deals at a low rate because they’re bleeding money. After evaluating their costs, they increased their rates and posted those new rates at the door. And that’s what they’re collecting. Our first step has to be recognizing what insurers do, and then we need to combat their unjust actions with facts and data. And an important fact is that a body shop is a business and should be run like a business. I recently talked to an investment guy, and he asked me about the profit margins in body shops. He guessed it to be 70-80 percent; he was appalled when I told him the best shops average 20 percent with the majority only profiting in the single digits. Listen, identify all your expenses and add them up - that’s your true cost of doing business monthly. There isn’t a single insurance company out there that doesn’t know their KPIs, but unfortunately, most shops can’t tell you what their KPI amount is…and if you can’t, how the hell are you going to run a business? Your bills need to be paid, and you need to know how much is needed to make sure that money is available. We can’t afford to assume or guess, and if you’re waiting for your accountant to tell you whether you made money at the end of the year, you’re making a grave mistake, the kind of mistake that will bury your business. Whose money is it, and who’s controlling it? From ADAS to EVs to photo estimating, the entire landscape of the industry is changing, and unless you’re paying attention to what’s really going on, you’re going to have problems. We’ve reached a pivotal point, and it’s time to decide how you’ll combat this dilemma. I can offer my opinions, but ultimately, it’s a decision you’ll have to make for yourself and your business. How far are you willing to go to stand up for what’s right? NJA
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MECHANICAL CHAIRMAN’S MESSAGE
Why I Like New Jersey and Why I Can’t Wait to Leave After graduating high school back in 1975 (ouch!), I packed up my 1968 Firebird and drove across the country, visiting various state and national parks along the way and eventually making my way to Los Angeles, California. My buddy, who was an Eagle Scout, showed me “the art of camping” – pitching tents (at night in the rain) and sleeping on the ground. During the next four summers, I covered a lot of ground as I traveled and camped out west as well as in Florida several times. After seeing and living in a lot of states for months on end, I realized two things: how much New Jersey has to offer and how much I don’t like camping. Quite frankly, I prefer “Camp Marriott” and sleeping in a bed, as opposed to sleeping on the ground in a sleeping bag. Now, roughing it to me is when the remote on the television doesn’t work or if my white wine isn’t chilled and I need to put ice cubes into it. As far as New Jersey, my time spent on the road gave me a whole new appreciation for my home state. Yes, other states may have more impressive attractions such as Killington for skiing, but we have ski resorts within driving distance. Yes, California has more coastline, but New Jersey has better beaches that are much wider with nicer sand and easier access than the many beaches I saw in California, some of which required a great climb to access. Also, while in Los Angeles, I experienced a stagetwo smog alert and was in a bad way for several days and had to stay indoors with the air conditioner on. In short, New Jersey may not have the best of everything, but it has access to most everything due to its location. The Pros • There are many activities within the state or within driving distance: Good snow skiing, again with Killington not far away. • Lots of farms and “pick your own” apples, berries and other fruits and vegetables. We are the “Garden State.” • Abundant concert venues, cultural activities, museums and NYC not too far away, especially if you live in North Jersey. • Our beaches are amongst the best, and we also have many lakes, which means we have fishing, water skiing, wakeboarding, boating, swimming, etc. The Cons • Business climate – New Jersey consistently ranks last, or close to it, as far as being business friendly – a dubious honor. As I have witnessed, entrepreneurs in 14 | New Jersey Automotive | May 2022
by KEITH KREHEL
this state are often viewed as the enemy by many career politicians, most of whom have little-to-no private sector experience, instead of being viewed as the job and wealth creators that we actually are. New Jersey has gone from an attractive business location to a very expensive place to start and operate a business. Forced sick leave and high minimum wage have further compounded this problem. • Taxes – Clearly the elephant in the room. A little over 50 years ago, New Jersey had the third highest property tax in the nation, but it had no sales tax, no income tax, no lottery or casinos, and business taxes were a fraction of what they are today. We now have all these taxes, and they are amongst the highest rates in the country, while our property taxes are still one of the highest in the nation. For example, years ago, my brother and I owned comparable homes, but his was in North Carolina, while mine was in Bergen County. I was paying over five times what he was paying in property taxes. High taxes haunt all employers as we have to pay substantially higher payrolls, so our employees can afford to pay all their taxes, including property taxes as well as others. Manufacturing has been chased out by the high cost of labor, migrating to less expensive states, or countries. An example is the recent Nabisco closure. Now, my Oreos are made south of the border in Mexico – not good. Simply stated, a prohibitive price of labor chases out jobs, while competitive Labor Rates retain jobs. Keep in mind: The less manufacturers pay in labor, the less they have to charge for the product. • High cost of living - How often have you heard of someone moving to New Jersey to retire? A lot of retirees can’t even afford to stay in New Jersey on their fixed incomes. Many have paid off their homes but can’t afford the taxes. As far as I am concerned, I feel my vote is wasted in the now “dysfunctional” state of New Jersey, and I intend to move to Florida in the future to avoid high property taxes and avoid paying a state income tax. The combination of these two will result in substantial savings. I also feel my vote will count in Florida. FYI, I believe the next “border wall” – not literally, but by penalty – will be built around the hopelessly liberal states that people like myself are leaving in droves. NJA
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EXECUTIVE DIRECTOR’S MESSAGE
Where Do We Go from Here? by CHARLES BRYANT There is no way to explain it other than: What a mess! Repair shops cannot get the parts needed to make repairs, and even if they can find the parts, there are not enough technicians available to make the repairs. Insurance companies are attempting to make the claim that they cannot come out to inspect damaged vehicles because of the COVID-19 pandemic, and therefore, collision shops have no choice but to take photos of the damage, prepare an estimate and send it to the insurer in order to get paid for the repairs. In reality, insurers were pushing to get collision shops to take photos long before the pandemic came along. The real reason is that, by doing so, insurers save millions of dollars by eliminating the appraisers and all that goes along with having them employed to perform the self-imposed inspections of damaged vehicles. Shops that haven’t kept up are going to have a very difficult time catching up. Shops that do not have the proper equipment or the proper training required to repair today’s modern vehicles simply cannot perform the
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repairs. It’s not like the old days when most repairs were somewhat simple because the vehicles themselves were somewhat simple. The vehicles on the roads today are anything but simple. They are extremely complicated, and a technician has to be trained on how to repair them or he or she will be absolutely lost. Those known to be the best technicians available on older type vehicles would not even know where to begin the repairs on these vehicles unless he or she were properly trained. When you combine this with the effect of the COVID-19 pandemic, what a mess we have to deal with. What is interesting is that certain insurance companies are taking full advantage of this unfortunate situation. For example, the regulations governing fair claim settlement practices require insurers to perform the inspection of damaged vehicles within seven working days from the time the claim was reported, commence negotiations and make a good faith offer of settlement, if they choose to inspect the damaged vehicle before repairs commence; however, continued on pg. 38
®
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LOCAL NEWS
Passion Breeds Passion: New Teacher Breathes Life into Auto Body Program Collision repair offers a wonderful career path, but fewer and fewer young men and women enter the trade each year. With students’ fading interest in collision careers resulting in decreased enrollment, many high school auto body programs have fallen into oblivion, limiting the industry’s ability to inject new blood into shops. During the 2020-2021 school year, the auto collision repair technology program at Salem County Vocational Technical School (SCVTS) in Pilesgrove desperately needed resuscitation – only 12 students were enrolled in the class, barely keeping it alive. Eager to revitalize the languishing program, SCVTS Principal Jason Helder and Jack Swain, superintendent of Salem County VocationalTechnical School District, started their search for a new instructor.
Nickerson provides guidance to students during every step of the repair process.
“As the collision field grows, technicians are very much in demand, but for our program to be successful, we were looking for two things in a new teacher,” Helder explains. “Our ideal candidate would have significant experience in the field, and they would also have local connections.” Accustomed to rescuing those in crisis, Salem County Sheriff Charles Miller swooped in with a solution: Mike Nickerson, a passionate vo-tech graduate who owned and operated Cousins Garage (Salem) for the past 23 years. “Through his involvement with youth groups and Boy Scout troops, Mike had shown his ability to build rapport with young people, plus his vast experience in the shop ensured his understanding of the latest industry standards,” Swain says. “We were fortunate to find Mike, and since he came onboard, the auto collision program has really gained momentum.” “It was important to find an instructor with a great reputation in this market to help expand our co-op program and assist with lining students up with jobs after graduation,” Helder adds. “We’ve had some luck with our 20 | New Jersey Automotive | May 2022
co-op program, but it’s become more successful because local shop owners know Mike and know the students he’s sending them have his stamp of approval.” When he started at the school in April 2021, Nickerson began by taking the program’s pulse, immediately rolling up his sleeves to revamp the curriculum. “One of our seniors had never sprayed anything other than water, Students help their peer as and most of them indicated she restores the truck her they’d spent most of their grandfather gave her. time watching YouTube videos instead of practicing any of the skills they’ll need in the field,” Nickerson recalls. “I dug out some old door skins and fenders and taught them to fill and prime dents. Those kids walked out of the class smiling from ear to ear, and several of them carried fenders home to show their parents!” Nickerson reinstated ASE training and upgraded some of the program’s tools and equipment. “We implemented a brand new PPG waterborne system, and I fixed the paint booth. We also installed a dryer system on the air compressor, all new reel-out air lines, a plastic welder and a frame machine.” Thanks to guidance from a member of the school’s professional advisory board, he also applied for a grant through the Collision Repair Education Foundation (CREF), receiving a $2,500 check as well as tool and supply donations from 3M. Nickerson’s future plans include setting up a workstation to teach estimating with donated software from CCC. Although Nickerson taught the auto body program for less than two months of the year, word spread quickly with students posting stories to their social media accounts about everything they were learning. This school year, the auto body program increased by over 300 percent, boasting 40 enrolled students. The diagnosis for next year looks even healthier. “We are proud to say that we will have a full enrollment for the 2022-2023 school year,” Swain shares, acknowledging that it’s “been a bit” since the auto body program attracted a full roster.
by CHASIDY RAE SISK
The shop at SCVTS is filled with students’ projects.
“Student engagement has increased, and we’re really impressed with the job Mike has done so far,” Helder agrees. “Students are learning every aspect of auto body work, including welding and painting, so they’re developing skills they can use to market themselves for future jobs. As the field expands with new technology, it’s imperative that we expose students to all the different career options in collision.” Career preparation is an important component that Nickerson teaches. “Mike runs his class like a shop,” Swain reports. “He holds a pre-meeting at the beginning of class to discuss safety and assign projects. He demonstrates the techniques students will perform. He even uses a timesheet to teach them to clock in and out. He structures his lessons exactly how you’d hope to see it structured.” Of course, at the end of the day, administrators’ opinions mean little unless they’re corroborated by the students taking the class. “Mr. Nickerson is great!” according to one junior collision student. “He’s funny and teaches us new skills. Having a good teacher is everything!” This year, the class has worked on several community projects, including the restoration of a township fire truck. A key to Nickerson’s success with students can be found in his willingness to allow them to work on projects that mean something to them, such as one student who has spent this year restoring her grandfather’s pickup truck. Other students apply their newfound auto body skills in unique ways. “He’s pretty cool,” another junior confirmed. “Before Mr. Nickerson became our teacher, I’d only scraped paint off a hood with razor blades; we didn’t get to work with Bondo or paint. That all changed when he started – we actually learned something! He taught us about bonding and painting in a relatable way, and I’ve been able to repair my skateboard with the skills I learned in this class. “I really enjoy the hands-on part of class, especially refinishing cars, but this program is so much better with a teacher who shows you what to do and encourages you.
Mr. Nickerson is easy to talk to; he really holds it down.” Any good teacher can tell you that supporting students takes on multiple forms outside of the standard conveyance of information through lessons. One senior spent the first three years of high school asking to transfer to the welding class. “Others laughed in my face, but Mr. Nickerson taught me to use the mig welder and then helped me transfer to the welding class part-time. The entire experience has been completely different since he started.” In addition to developing a relationship with the school’s welding instructor, Nickerson also works closely with SCVTS automotive technology instructor Al Roeske. “Our school needed this,” Roeske says. “This wing of the building really came alive SCVTS students refinished a vehicle when Mike moved in. for the township fire department The kids are always as a class project. hustling, never standing around idly. I’m really proud of the direction SCVTS is taking.” Although SCVTS already had a fairly strong advisory board, Nickerson’s goal is to strengthen industry involvement, and he’s invited several industry professionals to speak to his students. “My students love talking to industry professionals, and they get really excited every time we bring in any new tools or equipment,” Nickerson states. “These kids are fantastic. They’re respectful and grateful to learn. Our auto body program is definitely on the mend, and my plan is to continue healing and nurturing it.” Supporting local vo-tech auto body programs plays a significant role in ensuring the industry has a future, plus it grants shops access to future techs earlier and builds rapport with instructors to ensure students learn the skills needed to successfully enter the industry. Getting involved is easy – join an advisory committee, offer shop tours, hire an apprentice or offer to be a classroom guest speaker. “Contact your county vocational school, speak with the instructor, and become part of the program,” Helder encourages. NJA
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FEATURE STORY
Does the Consumer Even Care? Auto body shops don’t have it easy. Keeping up with the changing technology, trying to get through the volume of work with limited staff and contending with insurers consume most days, but those challenges are worth it for many repairers who take pride in what they do: Protect consumers by safely and properly restoring their vehicles to pre-accident condition. Your customers appreciate what you do, especially when you take the time to educate them, but do they really understand all that’s involved with repairing a vehicle and running a shop? In the March issue of New Jersey Automotive, publisher Thomas Greco shared his account with “The Blind Eye Doctor” (see bit.ly/TGPblind) who was completely unaware of the work it takes a collision repairer to get the job done. His experience inspired New Jersey Automotive to try our hand at educating the consumer to find out: Are consumers completely clueless? Do they know how heavily shops invest their time, energy and funds into training, tools and equipment? Are they capable of “getting it?” Do they even care? Our 10 consumers from the Garden State represent various careers and age groups, and they are all unaffiliated and unfamiliar with the collision repair industry; most indicated that their knowledge was limited to one or two interactions they’d previously had with body shops after collisions. A few made it clear they had not set foot into a body shop in more than a decade. We began by assessing their current knowledge on three topics: the length of time needed to learn the trade, the amount shops invest in tools, equipment and training and the all-important question of the Labor Rate. After obtaining these responses, we provided a two-minute lesson on the industry and asked them to re-evaluate their original thoughts. Let’s find out what they had to say! It was not surprising in the least to hear most people initially utter “Oh wow, I couldn’t even guess,” “I really have no idea” and “I don’t know” upon being queried about the auto body world. But what they actually think they know about the industry did vary when asked how much training is involved for one to become a qualified technician. A retail chain shipping manager from Lodi suggested it would take “10 years – with talent – to really become good at what they do,” while a music historian from Woodland Park wasn’t even sure technicians attended school to learn the trade: “As with any job, I’m sure there’s a lot of training involved, but I don’t know of any official
24 | New Jersey Automotive | May 2022
schooling degree. So, maybe 40 to 80 hours of on-the-job training.” Interestingly, two retail professionals interviewed were under the impression that training would not be very lengthy or involved. An independent sales consultant from Mount Laurel suggested “six to nine months with ongoing training to stay relevant,” while an Englewood project manager for a national office supply retail chain stated, “I don’t think it takes that long. I’d say like two months.” A registered nurse from Dover recognized some of the skills a technician would need: “Let’s see, they’d have to learn to paint and fix dents. They’d have to know welding and sanding. I would say a year.” Most others guessed right along the same lines, suggesting one to three years; however, a grammar school teacher from Wyckoff is of the belief that the more training that goes in, the better one becomes at their craft. “We [teachers] are told it takes about five years to become good at something, so I’d think the same would be true for any profession.” Although most agreed that shops would need to invest in tools, equipment and training, only four out of the 10 people we spoke to believed that amount should be any higher than six figures, with the office supply retail chain project manager coming in with the highest guess of $125,000. “I would think six figures easily,” put forth a professional musician from West New York. A Wayne-based healthcare advertising client service executive also estimated such costs could amount to $100,000, while a college adjunct professor from Hopatcong believed the same, calling the query “a tough one” as he tried to work out in his mind what training and new equipment is necessary, concluding that it must amount to at least $100,000. “Tools are expensive. It’s got to be like $50,000, at least,” offered the registered nurse. “I don’t know what their supplies cost. I would say maybe $30,000,” wondered the grammar school teacher. “Probably a lot. I’d guess $20,000,” a fundraiser from Chester estimated. However, the shipping manager acknowledged tools and equipment would be costly, especially for “specialized stuff,” yet indicated the financial burden might total “a couple grand easy” for basic tools. Also, he suggested that tools “can last forever,” but to stay on top of training would amount to “at least a couple of thousand.” In regard to the Labor Rate, we discovered an interesting trend upon polling consumers regarding how much a shop should charge per hour to cover all of that
by ALANA QUARTUCCIO BONILLO & CHASIDY RAE SISK shop’s expenses, including parts, supplies and overhead costs. At least half believed the shops should charge roughly $50 per hour (not much higher than the $48 Labor Rate in New Jersey) with many actually considering the amount to be costly. Fully recognizing the expertise that goes into the job, the grammar school teacher suggested “a relatively high hourly rate of about $50.” “I’d say, depending on the vehicle, $50 an hour maximum,” claimed the music historian after stating, “I know it’s a specialized skill and it’s expensive, but it seems like it’s inflated when you get the bill.” The adjunct professor believed an even smaller amount would suffice. “Going by what I’ve seen, I’d think it would have to be somewhere in the $40 to $45 range,” he said, believing “it’s a fairly competitive wage” to get quality work. Some started out guessing within the $40 to $50 range and quickly changed their minds as they thought about it some more. “At least $50, but it might even be more. Let’s go with $75,” guessed the registered nurse. Some really weren’t sure what to base it on. “Perhaps $75 an hour. I literally never thought about it,” proclaimed the fundraiser. “I don’t think you can set one per hour price,” suggested the independent sales consultant. “What makes sense for a body shop that works primarily on your average class cars and trucks is not going to make sense for shops that have the experience and knowledge to work on high end vehicles. Same with classic/ antique cars. But for an average driver driving an average vehicle – $35-$50.” “I’ll go with $75,” shared the advertising client executive. “If you factor in parts and everything, it’s quite expensive, and it’s a delicate process… It’s something that is extremely needed.” But the highest guess of all came from the professional musician who
suggested a Labor Rate of $100. After consumers provided their initial responses, they were given a short “training session” on collision repair: Vehicles are typically the second largest investment people make, and these days, cars are essentially supercomputers on wheels that can kill the driver, occupants and others on the road if repaired improperly. In addition to at least two years of formal education, technicians participate in ongoing training to keep up with advancing technology and manufacturer requirements, and they provide their own personal tools which can easily accumulate in excess of $100,000. Changing technology also requires shops to constantly invest in tools and equipment, plus shops that participate in various OEM-certification programs may be required to purchase specific items to repair that manufacturer’s vehicles. Typical startup costs for a small shop run around half a million dollars, and when we talk about Labor Rate, it’s important to remember that this is a business with overhead expenses such as rent, utilities, insurance,
taxes…in addition to employee wages and benefits. As a point of comparison, the national average for lawn mower repair is $90/hour, and auto repair rates on the mechanical side typically range from $85-130. How did that “education” influence consumers’ initial thoughts? “How can they even cover what they are doing?” asked the advertising client executive when learning about the additional costs and work involved. “I can definitely see that it would need to be higher.” The independent sales consultant changed her thinking believing that $100 per hour would make more sense for an average-sized shop working on one or two vehicles at a time. The shipping manager, who initially suggested a Labor Rate of $70, felt his initial thoughts were in line and acknowledged that “you do need a well trained person with the right stuff.” He jokingly added, “I’d love to pay $5 for it, but that’s just not realistic.” “I had based it on what I would make per hour for a wedding or continued on pg. 35 New Jersey Automotive | May 2022 | 25
26 | New Jersey Automotive | May 2022
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NATIONAL NEWS
by CHASIDY RAE SISK
To Retire or Not to Retire: Audi’s Rich Maniscalco Debates What Retirement Looks Like After a decade with Audi – and several decades prior with other European brands – Rich Maniscalco deserves a nice, long break from the chaos of the automotive industry…but he has not decided what retirement means for him just yet. Maniscalco began his foray into the automotive industry as a teenager. “Most of the guys I went to school with, myself included, were attracted to the automotive industry when I was 17 or 18, and following high school, I acquired a lot of my experience by working part-time and then full-time in the parts departments of local dealerships.” Serving in the US Army and New Jersey Army National Guard for 25 years also provided him with a background in automotive mechanics and operations. “My military experience translated into all the things I did on the civilian side, working for import manufacturers in parts and service.” Over the course of his 40-year career, Maniscalco spent four years with Volvo, 13 years at Mercedes-Benz of North America, eight years with Saab USA and eight years with BMW before Audi recruited him to handle their parts and accessories operations in the Eastern region. He has been with Audi since April 2012, operating in the role of in-dealership consultant focused on driving incremental revenue by improving internal processes, communicating competitive advantages and enhancing aftersales marketing and merchandising. During his automotive tenure, Maniscalco enjoyed many successes in his various roles, but one initiative definitively stands out above the others as his proudest accomplishment: “I’ve always worked with each OEM’s dealers to help them develop their relationships with local independent collision and service centers to ensure those independent shops always had access to replacement parts from the OEM; however, while I worked for BMW, I aided in revamping their wholesale parts and service marketing campaigns and transitioning them to a business-tobusiness (B2B) marketing model. The shops who normally bought parts from those dealers began being treated as true customers, and through enhanced communications, the dealers were able to better aid and retain those customers.” 28 | New Jersey Automotive | May 2022
Although he was slated to retire several years ago, Maniscalco opted to continue working and serving the industry because “I felt that there were some parts and customer needs not being adequately addressed, and I believed that I could still contribute to improving that portion of the business and also accomplish more in the sales channel.” While Maniscalco is retiring this month, he’s not certain that he’s given all he could to the industry he’s so passionate about. “I’ve been giving some thought to the idea of launching a new consulting company based on relationship marketing, similar to what I did at BMW, that would help import and domestic dealers that serve the independent repair specialists. Building relationships and providing superior customer service is mutually beneficial to the dealerships and the independent collision repair specialist. “I was really proud of what I accomplished with that initiative, and the idea of continuing that work appeals to me – consulting would allow me to expand the impact of B2B marketing to reach more shops and dealerships. Historically, very few OEMs have had the resources to commit to the sales channel in order to assist their authorized dealers.” Of course, retirement is meant to be enjoyable, and Maniscalco plans to have a little fun, such as traveling to Guam, Ireland and several locations around this country, though nothing has been scheduled yet. But his excitement was palpable when he discussed the possibility of continuing to support the industry. “I’m still unsure if I’m going to start a consulting business,” he hedged. “But if I do, I’ll call it ‘About Time’ because it’s about time we address this issue.” So, why not just relax, travel and enjoy his retirement? “There are things that you’ve been responsible for, that you have an emotional connection with. Sometimes, they fall into the rearview mirror and you replace them to some degree, but others creep into your soul. These are the things that shape you, that make you who you are, and it’s much harder to turn your back on them. I still have a lot left to give, and what better industry to give it to?” NJA
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New Jersey Automotive | May 2022 | 31 5/27/21 5:43 PM
COVER STORY
by ALANA QUARTUCCIO BONILLO
Young Technicians Shine, Show Promise of Bright Future Through SkillsUSA Competition The future of the collision repair industry shined bright on April 9 as students from different parts of the state returned to the Somerset County Vocational and Technical High School in Bridgewater for the first time since 2019 to compete in the SkillsUSA collision repair competition. Congratulations to Mase Fitzgerald-Angello (Passaic County Technical Institute) who won first place and will move on to the national competition. Kudos are also in store for second place winner Luke Donnadio (Somerset County Vocational and Technical High School) and third place winner John Lyzenga (Morris County Vocational School of Technology). Event Coordinator Charity Ritter (Bridgewater Collision) expressed her gratitude to everyone who took part and donated their time and support to the event. “Our donors, Bridgewater Collision, really stepped up for us this year and donated large tool kits for our first, second and third place winners along with gift certificates for Snapon tools for each winner. They also put together bags with hand tools and other goodies for every contestant to take home!” In addition, National Coatings and Supplies donated hand tools which were raffled off to the contestants during the lunch break. “I also really appreciate the time my judges donate that really help make the whole thing possible,” added Ritter. Those involved with the competition were glad to see youngsters excited about the collision repair field, especially with the industry experiencing a widespread technician shortage. Somerset Vo-tech Instructor George Byrd was not only glad for the return of the competition at his school but was grateful to see the enthusiasm shared by the students who competed. “The SkillsUSA competition makes the students realize that the more they work at it, the better they will be at it,” explained the 74-year old instructor who has not only been sharing his wisdom and passion for collision repair working at the school for 30 years but is also a product of it; he 32 | New Jersey Automotive | May 2022
FIRST PLACE: Mase Fitzgerald-Angello Passaic County Technical Institute SECOND PLACE: Luke Donnadio Somerset County Vocational and Technical High School THIRD PLACE: John Lyzenga Morris County Vocational School of Technology graduated from the school in the 1960s. Byrd shared some of the things he’s seen change over the years. “The technology has advanced quite a bit, and it’s made it easier. In the ‘60s, when I was a student, the materials either worked or didn’t work, but the materials of today are so much better. They keep improving the equipment too,” he observed. “It’s been tough to get kids involved in this profession, and we have a dwindling side of vo-tech collision programs as well,” shared Michael Bonsanto (Passaic County Technical Institute and I-CAR). “I want to say there are about eight or nine schools in our state still offering collision which is really sad. Photo Credit: Alicia Figurelli
“It would be great if we can get more kids competing from the vo-tech side,” he continued. “Whether they win or not, it doesn’t matter. That’s what I tell my students; the fact that they are stepping up and competing is great stuff, and it shows that they care.” Byrd believes this year’s competition proved that interest in collision repair at the vo-tech level is coming back. He hopes to get more schools involved and see even more competitors next year. Students can read articles and watch videos, but there is no real training unless you can do it hands-on, according to Byrd. He always tells his students to stick with it because collision repair can be a good way to make a living. NJA
New Jersey Automotive | May 2022 | 33
34 | New Jersey Automotive | May 2022
FEATURE STORY continued from pg. 25
an event,” explained the musician, who had suggested a Labor Rate of $100. He justified his way of thinking, stating, “I have to pay for equipment, I have to be an expert. I had to study. I have to take transportation to get there. There’s a lot of additional costs, so the body shop is going to have to do the same thing. They’re going to have a lot of overhead.” The registered nurse completely came on board with the belief that body shops need to charge more: “I know it’s expensive. The last time I had work done, someone had crashed into me, so it was all covered by insurance, and I didn’t pay attention to how much it cost. I’d guess they’d probably need to charge $200 per hour.” The grammar school teacher stated she wouldn’t change her original guess of $50 per hour and offered advice to body shops: “I think they can mark up supplies and pass that on to the consumer to make up the deficit.” The newfound information didn’t influence the retail project manager a great deal, but she acknowledged how technological advances was something she had not considered initially. “I’d say this changes my thinking a little bit, especially when thinking about technology constantly changing, but with the general run of the mill of things, it doesn’t really change my thoughts. The professor didn’t sway too far from his initial thoughts either, stating it “slightly” changed his point of
view: “Maybe bump it up a bit considering all the regular training they have to do; I wouldn’t double what I said, but I can understand they’d need it to be higher.” The music historian realized she underestimated what body shops should charge per hour, yet she believed that aside from initial start-up costs, investing in good tools should “last a long time” and then would not be taken into account when looking at overhead. So, what does this mean for repairers? There is certainly a lot of work to do in and out of the shop to educate the consumer. One way to accomplish this is to get involved with your local association: AASP/NJ works hard to improve the industry and help educate the consumers of the Garden State. Education really is key. The more collision repairers educate their consumers, the better they can understand what is happening when they take their vehicle in for repairs so they can fight their insurers for proper compensation. Helping them “get it” can help you collect proper compensation. As per the words of the registered nurse, “body shops should absolutely charge what they need to.” This is proof that an educated consumer does “get it.” NJA
New Jersey Automotive | May 2022 | 35
Co-celebrating decades of creating chemistry between two industry leaders
Here’s to 235 years of combined service excellence This year, as Albert Kemperle Inc. celebrates its 80th anniversary, BASF also celebrates its 155th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it. Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.
626 E. Elizabeth Ave., Linden, NJ 07036 414-416 Madison Ave., Paterson, NJ 07524 631 Clifton Ave., Toms River, NJ 08753 100 Melrich Road, Cranbury, NJ 08512 4 Emery Ave., Randolph NJ 07869 36 | New Jersey Automotive | May 2022
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INDUSTRY UPDATE
TGP Senior Vice President Alicia Figurelli Honored Among Women’s Industry Network’s 2022 Most Influential Women Thomas Greco Publishing is proud to announce that Senior Vice President Alicia Figurelli was selected as a recipient of the Women’s Industry Network’s (WIN) 2022 Most Influential Women (MIW). The MIW awards honor the women whose career achievements have enhanced the collision repair industry. “Alicia has been dedicated to this industry for the past two decades, and she always goes above and beyond her duties,” shared Thomas Greco, president of Thomas Greco Publishing. “She is selfless, generous and determined, all characteristics she applies to her involvement in everything she does. We are proud of her and excited to see her efforts recognized by a national organization like WIN.” “I respect all the amazing work WIN does to promote and elevate women in the industry, and to be considered worthy of such an honor, to be recognized in the company of so many exceptional women, is simply amazing,” Figurelli expressed. Thomas Greco Publishing represents a variety of automotive repair trade associations including the Alliance of Automotive Service Providers of New Jersey (AASP/NJ), the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), the Alliance of Automotive Service Providers of Minnesota (AASP-
MN), the Washington Metropolitan Auto Body Association (WMABA) and the Auto Body Association of Texas (ABAT). In addition to Figurelli, this year’s honorees include Allison Boever (Repairify), Shirin Hezar (Caliber Collision), Jennifer Hubbard (CCC), Samantha Kita (Gerber), Debbie Menz (Axalta) and Micki Woods (Micki Woods Marketing Genius for Body Shops). “These seven sensational ladies have made a huge impact on the collision repair industry through their dedication to excellence, commitment to their communities and investment in the future through their willingness to mentor other women,” says Rachel Hinson, MIW committee chair. “Your exemplary journeys show young ladies that anything is possible when you put in the work. We can’t wait to celebrate you at the Conference!” Since the MIW awards were established in 1999, over 100 inspiring women have been recognized for their visionary leadership and commitment to excellence. WIN will celebrate the achievements of this year’s seven MIWs during its 2022 Annual Conference, scheduled for May 2-4, 2022 in Greenville, SC and online. For more information about WIN or the Most Influential Women award, visit womensindustrynetwork.com. To learn more about Greco Publishing, visit grecopublishing.com. NJA
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OUT OF BODY (AND MECHANICAL) EXPERIENCES continued from pg. 10
dressed. And once again, I felt like I was in the shower scene from the movie Carrie. Back on the bed, I surprisingly still wasn’t panicking…actually, I was panicking…about not being at the show. Then a lightning bolt idea hit me. I asked my wife to run out and get me a box of… Maxi pads. Yup. Maxi pads. Did I ever think, at the age of 61, that the words “can you get me
some maxi pads” would be coming out of my mouth? Not a chance. A diaper maybe. But maxi pads? Funny enough, about 30 seconds after I said those words, I received a text from Alicia: “Why don’t you get some maxi pads?” Mind meld. My wife came back, and yes, I peeled the backing off the pad, stuck it on my undies and headed out to the Meadowlands. The bleeding eventually stopped around
11am. But if you were at the show and noticed me walking funny, that’s the reason why. We still don’t know what happened. As I said, the shower was clear, so it had to have been something in the towel I guess. Who knows? It seems this shit only happens to me. But I guess it’s a blessing. Stuff like this gives me something (hopefully) entertaining to write about each month. And you know how, from time to time, I realize there’s a lesson from these events? Well, I certainly learned one here. And that is: the reason I always sleep late is because NOTHING good ever happens to ME before NOON!
NJA
EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 16
38 | New Jersey Automotive | May 2022
without any change in the regulations that requires the insurer to perform the inspection of the damaged vehicle, insurers are now stating that they don’t do that anymore. To be clear, they are saying that they don’t perform the inspections anymore. Well, that is not what the regulations governing fair claim settlement practices says. In fact, it says the opposite. These are just a few of the issues that members of the collision industry currently have to deal with and it doesn’t look like things are going to go back to normal any time soon. So, the real question that needs to be dealt with is: Where do we go from here? One thing is for sure – AASP/ NJ is watching things closely and coming up with solutions to many of the issues as they arise. If anyone has dealt with a unique problem or situation that is directly related to the current times we live in, please call the AASP/NJ Hotline at (732) 922-8909 and share your experience with us so that we may help others in these hard times. NJA
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The Automotive Recyclers Association of New Jersey
Wharton Insurance Briefs
Recently, we have had a number of questions and concerns regarding workers’ compensation audits. Audits are normally performed between 30 and 60 days after the expiration of your policy. You may be mailed a form to complete, be contacted by phone Norm Vachon - Port Murray Auto for the information or have a scheduled visit by an auditor. Whether you complete the audit (908) 689-3152 / portmurrayauto@yahoo.com by filling out the forms, over the phone or during a visit, make sure you are prepared. You should prepare a breakdown of payroll by employee and by classification. You will also Dillon Rinkens - East Brunswick Auto need supporting documentation such as WR-30s or 941s. (732) 254-6501 / ebautonj@comcast.net It is important to make the proper classification of each employee. There are several classifications: Auto Dismantler (including drivers), Auto Repair (mechanic), Auto Parts ARANJ Officers (counter/store), Iron or Steel (including drivers), Clerical and Sales. It is extremely important President - Rodney Krawczyk to classify each employee accurately. If you are directing the auditor to your accountant, Ace Auto Wreckers (732) 254-9816 / aceautonj@comcast.net you should review the information with your accountant before it is released to the auditor. If you have used subcontractors, you will be requested to supply: Ed Silipena - American II Autos (609) 965-0987 / esilipena@yahoo.com
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
Past President - Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 / dirkesauto@gmail.com
a. The total cost of the subcontractor’s work. b. A Certificate of Insurance, evidencing the subcontractor’s general liability and workers’ comp insurance. The Certificate of Insurance should also name you as an additional insured. Without this, the subcontractor cost will be charged as an employee payroll. Always request a copy of the auditor’s worksheets for reference. If you should have any questions regarding your audit, please contact me.
Mario DeFilippis, AAI Vice President, (732) 686-702 (908) 513-8588 (cell), mdefilippis@whartoininsurance.com
NJA
New Jersey Automotive | May 2022 | 41
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