New Jersey Automotive July 2023

Loyalty Has Its Rewards.

Independent Service Providers now have the opportunity to earn rebates on Genuine Mercedes-Benz Parts and StarParts purchased through authorized dealerships like Mercedes-Benz of Flemington.

The more you spend, the more you earn.

Mercedes-Benz of Flemington customers now have an easy way to earn cash rewards on Genuine Mercedes-Benz parts purchases through the StarRewards program!

Getting started is easy. Qualifying independent mechanical and collision shops will receive a quarterly purchase goal/target for the business from Mercedes-Benz (based on past purchase history). Throughout the quarter, your purchases will be tracked. At the end of the quarter, you’ll qualify for cash rewards if you meet or exceed your target sales. The more you buy, the more you’ll earn!

You’re already buying Genuine Mercedes-Benz parts to provide your customers with the highest in quality repairs. Why not get rewarded for it, too?

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

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

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

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

PAST PRESIDENT ATTENDING

Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com

16

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 CONTRIBUTING

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

Cynthia Tursi

Lee Vetland

Paul Vigilant

Rich Weber

Brian Vesley

Glenn Villacari

Stan Wilson

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The Green Mile

Life is funny. As the years go by, so many of the things our parents warned us about come true. With all the shit going on in the world today, I often wonder if my dad had the same helpless, frustrated feelings I’m having as I look around at so many things that are so wrong. At least he was allowed to talk about them without the fear of being canceled.

Unfortunately, my dad died almost 40 years ago, so I never had the chance to ask how he dealt with things like unending foreign wars, corrupt politicians, inflation, social norms we have known all our lives being turned upside down, etc. Maybe he felt the way I do about the craziness of his time (Vietnam, Richard Nixon, etc.). I’ll never know.

He also never had the chance to say things like, “It sucks getting old” and its predictable response, “Better than the alternative!” I am three years older than my dad was when he died, and I hear AND say those things almost every day!

And it seems that I am starting to live out the first part of that equation pretty frequently these days. Seriously, where is the handbook that tells you that, once you hit 60,

by THOMAS GRECO, PUBLISHER

you’re required to have no less than one body part hurt every morning when you get out of bed? Remember the old game Operation, where you had to try and take the different bones out of the guy without getting shocked? Well, most days I’m THAT guy.

Last month, I looked in the mirror and realized that pretty soon I’ll need a wheelbarrow to carry my stomach around with me. So I decided to do something about it. The weather was nice, so I was going to start walking!

Walking bores the shit out of me. Sure, I can take along my music, but I always end up singing out loud, and if you heard my voice, you’d know I would probably get arrested by other walkers who were offended. Not wanting to go to jail or get dirty looks from those who walk to live (you know who they are), I had a brainstorm. I would take my dogs with me!

Both Lucy and Penny are around 70 pounds each, so there was no way I was going to be able to handle both. For my maiden journey, I decided to take Penny, who is a little calmer than Lucy.

continued on pg. 39

Catch-22 by Design

Does the shop know best…or does the insurance company know best? It used to be pretty obvious, but these days, the majority of shops have no clue what it takes to fix these technologically advanced cars. It’s a catch-22 in the sense of being “an illogical, unreasonable or senseless situation” as well as “a situation presenting two equally undesirable alternatives,” as defined by MerriamWebster.

Because if the shop doesn’t know best, does that mean insurers do? Absolutely not! But that doesn’t mean they aren’t taking full advantage of those shops’ lack of knowledge. And they also use that against the shops that DO invest in the training, tools and equipment to repair customers’ cars safely and properly. That creates a catch-22 according to another definition: “a problematic situation for which the only solution is denied by a circumstance inherent in the problem or by a rule.”

The “problem” or “rule” here is that insurers simply don’t want to pay! During a recent conversation with an appraiser in my shop, I felt like I was

talking to an attorney; he wouldn’t say “yes” or “no.” I’m running through an estimate in his system and explaining how it’s set to a New Jersey profile, which is a manipulated version of what the estimating system allows. Now, he’s acting like he has no clue, and though it’s possible that he was playing dumb or being coy, I honestly don’t think he has a clue how the system works or why insurers do what they do. And that’s all by design.

On another supplement – and I use the word “supplement” lightly since this is actually my original repair plan where there’s a $22,000 difference between my bill and what the insurer wants to pay – our customer reached out to the head honcho at the insurance company to discuss the discrepancies. He acknowledged that they owe for necessary items and advised to resubmit for supplement; when our customer conference-called the manager and me to address this shortage, we were told they had a list of line items identified as “unwarranted” and “unnecessary” processes and procedures that they

by JERRY MCNEE

won’t pay for. Every line item was and is necessary to restore the vehicle safely and properly. Well, if I subtract those lines, that only lowers my bill by $5,000…so, where’s the other $17,000?! At the same time, they paid the dealership $230 an hour for mechanical work but want to insist on paying auto body shops a fraction of that for work the dealers can’t do! By the way, we could have done all the work they performed. But they couldn’t do ours.

A manager for yet another carrier consistently writes estimates below my costs. He claims my rate is too high, but I’m talking about my COSTS – forget overhead, admin and profit. If it costs $10 to complete a repair, and the insurer only pays $7, I don’t see how they are writing reasonable industry standard repairs. Well, he denies it, of course; “that’s impossible,” he tells me. But I’m not asking him…I’m telling him what’s happening. I challenged him to write a bumper cover replacement, and though he hemmed, hawed and chuckled, he eventually admitted that he’s not up for the challenge. Because he can’t nor could his staff properly write to safely replace a bumper cover with all the required procedures. Let’s face it: It’s no longer a simple, 15-minute estimate, not when you’re researching procedures, reading and adding in all the scans and calibrations necessary to properly repair today’s vehicles.

Insurers don’t want to pay, and while that hurts us as shops, I really feel sorry for the customers because these under-indemnification schemes are turning our industry into the medical field, making it

continued on pg. 40

It Just Takes 10 Minutes

In the ever-evolving landscape of business, it’s crucial to stay informed about market labor rates in your industry. Labor rate surveys serve as invaluable tools for businesses, allowing them to gather vital data about compensation trends, market competitiveness and the overall health of their industry.

While filling out a labor rate survey may seem like a time-consuming task, the benefits it offers far outweigh the effort. I urge you to go to laborratesurvey.com and take 10 minutes to fill out National AutoBody Research’s (NABR) survey. It is imperative that we have accurate data for the market rate in the state of New Jersey. The survey is deployed throughout the US. It’s the same survey for every state, and is available for all collision repair centers to take for free, as often as they need to. NABR recommends shops complete the survey at least once every six months to keep their shop profile up to date in LaborRateHero, including their labor rates, training, equipment and certifications. The more people who complete the survey, the more accurate the data will be.

Within 25 miles of my facility in Old Bridge, 107 shops have taken the survey as of 2014. The problem is, more than half have not updated any of their data in almost 10

by DENNIS CATALDO JR.

years! As prices and business costs rise, it is imperative that we are fairly compensated for what we do. We cannot accept the same compensation year after year in this current economic climate. We owe it to ourselves and our businesses to get fair compensation for our investments. We certainly cannot get it done with 10-year-old data. Please go to laborratesurvey.com and enter your shop’s information. Hopefully, with an accurate survey completed, we can make some progress and create the change we have been looking to make.

AASP/NJ Provides Shops with Guidance toward Business Protection

Running a collision repair shop can be complicated enough without potential legal issues that could come along if one doesn’t take the right steps toward protecting their business’ best interests.

AASP/NJ brought members of the automotive industry together on June 15 at the Holiday Inn in Clark, NJ for an informative session entitled

“Understanding the Laws and Regulations Governing Auto Repair and Auto Body Shops.”

“When push comes to shove, do you have what you need to protect yourself?” AASP/NJ President Jerry McNee asked the roomful of members and shop owners. “We are not attorneys and we aren’t here to give you legal advice. We are just here to provide you with some examples; what you do with them is completely up to you.”

McNee and AASP/NJ Board member Ken Miller walked collision and automotive repair professionals through some of the most important rules and regulations they may not be aware of concerning auto body repair facilities in regard to estimates and repairs, work authorization for repairs and notices that should be on display in all licensed auto body shops in New Jersey.

Not every business will operate the same way, but everyone should be aware of the law and should seek out advice from their respective attorneys. As McNee pointed out, “What I do is different from what Ken does. You have to do what works for you.”

One of the most important forms of documentation in a collision repairer’s

toolbox is the contract to perform repairs. The importance of this document - often referred to as a repair authorization form, according to Miller - was discussed, as it serves as an agreement between two parties – in this case, the business and the customer. Shop owners were given a lot to think about , including scenarios they may want to make sure they have protection against, such as being held liable for personal items left in a vehicle they are repairing.

“Do you want to be responsible for the Christmas presents a customer left in their trunk? You probably don’t,” Miller suggested.

McNee shared his own account of a customer who tried to claim his technician took a valuable piece of jewelry from a case the technician found underneath the seat of a vehicle he was working to repair. The technician never even opened this uncovered case; yet the customer tried to indicate he was responsible for the missing jewelry item.

As McNee and Miller explained, AASP/NJ members can reach out to Executive Director Charles Bryant for basic documentation that will at least assist with shops’ compliance with the law, but businesses are encouraged to work with their own attorney to develop a document that best serves their specific operation.

Miller acknowledged that many in attendance may have only heard of this information for the first time that night. As he detailed, reading the law and understanding it is a priceless investment in a shop’s future.

“It’s your business; if you aren’t willing to invest the time into it, who will do it for you?” McNee stressed.

AASP/NJ is grateful to its meeting sponsors Indasa and Ultra-Poly Corporation. Mark Moschberger of Flemington Auto Body was the winner of a grill which was raffled off courtesy of Ultra-Poly Corporation.

For more information about AASP/NJ and upcoming events, please visit aaspnj.org

AASP/NJ President Jerry McNee

AASP/NJ Board Member Ken Miller

A big turnout at AASP/NJ Meeting

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AASP/NJ’s Lou Scoras Memorial Golf Outing Returns!

It’s time to return to the green!

This September, AASP/NJ will bring back its longstanding tradition of gathering the automotive community together for a fun day of golf and interaction for the first time since 2019.

The 16th Annual Lou Scoras Memorial Golf Outing will be held Tuesday, September 19 at the Knob Hill Country Club in Manalapan, NJ. The outing is once again dedicated in memory of the late shop owner and association leader, Lou Scoras of Holmdel Auto Body. A portion of the event proceeds will be applied toward a collision industry scholarship fund.

“AASP/NJ is thrilled to bring back the golf outing,” says AASP/NJ Executive Director Charles Bryant. “The outing was held every year prior to the pandemic, and it has been missed by so many as it’s a great way for industry members to put their daily business aside for one day, relax and share time in the sun with colleagues and friends. The event not only pays tribute to a former

influential member, Lou Scoras, but it also raises funds for a scholarship in his name that can only help to engage and inspire the next generation of technicians. Attracting new blood to our industry is crucial in this day and age.”

The action-packed day will begin at 11:30am with registration and lunch, followed by a 1pm shotgun start. The Knob Hill Country Club offers an immaculate and challenging Mark McCumber designed course. Following time on the green, the gathering continues at 5:30pm with a cash bar, dinner and prizes.

Even if one only has a mild interest in the sport, Bryant encourages all to put the stresses aside and plan to spend the day on the green with AASP/NJ.

“Put some time aside and participate, not only in the fun the game has to offer, but in the drinks, dinner and camaraderie you will experience at this wonderful event. One thing is for sure, I will be there!” NJA

Player registration is now open, and multiple sponsorship opportunities are also available! To sign up for this year’s event, scan the QR code on the facing page. For more information, or to learn more about AASP/NJ, visit aaspnj.org.

16TH ANNUAL LOU SCORAS MEMORIAL GOLF OUTING

NEW OUTING LOCATION!

TUESDAY, SEPTEMBER 19

Knob Hill Country Club, Manalapan, NJ

11:30am Registration & Lunch • 1pm Shotgun Start

5:30pm Cash Bar • 6pm Dinner

JOIN US FOR A FUN DAY OF GOLF WHILE SUPPORTING AASP/NJ!

PRICING: $195/player ($780/foursome) DINNER ONLY (NO GOLF): $60 ea.

AVAILABLE

SPONSORSHIPS: REGISTRATION DEADLINE SEPT. 10

Platinum Sponsor Package: $3,500

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- 2 Hole Signs ($600 value)

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Gold Sponsor Package: $2,500

- 1 Hole Sign ($300 value)

- Large size listing on event signage

- Listing in NJA post-outing coverage

Silver Sponsor Package: $2,000

- 1 Hole Sign ($300 value)

- Medium size placement on event signage

- Listing in NJA post-outing coverage

Bronze Sponsor Package: $1,500

- 1 Hole Sign ($300 value)

- Small size placement on event signage

- Listing in NJA post-outing coverage

Hot Dogs at the Turn Sponsor: $2,000

- Your name/logo included on hot dog station signage

- Listing on event signage

- Listing in NJA post-outing coverage

Lunch or Dinner Sponsor: $1,000 ea.

- Your name/logo included on signage at chosen event (lunch or dinner)

- Listing on event signage

- Listing in NJA post-outing coverage

Longest Drive Sponsor - $750

- Company name/logo on signage at contest hole

- Listing on event signage

- Listing in NJA post-outing coverage

Closest to the Pin Sponsor - $750

- Company name/logo on signage at contest hole

- Listing on event signage

- Listing in NJA post-outing coverage

Hole in One Contest Sponsor - $750

- Company name/logo on signage at contest hole

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Hole Sponsor - $300 per sign

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This year’s outing is dedicated as always to the memory of Lou Scoras of Holmdel Auto Body. A portion of the proceeds from this year’s event will be put toward a collision industry scholarship fund.

FOR MORE INFORMATION OR TO REGISTER, visit aaspnj.org, scan QR code above or contact the AASP/NJ Administrative Office at (973) 667-6922 / aaspnj@gmail.com

Tackling the Tough Topics: An Executive Director Roundtable

The collision repair industry grows increasingly complex year after year…and sometimes day by day! From dealing with insurers to educating consumers to enhancing your shop’s abilities through training initiatives, these struggles may seem insurmountable, but with a little knowledge and preparation, shops can tackle the toughest trials and tribulations.

Few individuals understand exactly what shops are facing each day as thoroughly as the leaders of the nation’s most influential associations who graciously shared their thoughts. We discussed some of the most pressing topics shops are facing with AASP/NJ Executive Director Charles Bryant, AASP/MA Executive Director Lucky Papageorg, AASP-MN Executive Director Linden Wicklund and Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg.

While all of these ideas may not work for your shop, we hope that you’ll find at least one idea that will help improve your business moving forward.

New Jersey Automotive: What are some ways shops are working to break free from the insurance industry and gain more control over the repair process and how their consumers are educated? Regarding shops that have updated their business model away from DRP, how has this process been? What have been the obstacles and the benefits to the business and consumers? Will certified shops eventually replace DRPs?

Charles Bryant: More and more shops are getting certified to make repairs – some for many types of vehicles and some for specific types of vehicles. One would be amazed at how much weight the certification means to many consumers. Also, with the certifications comes a wealth of information to assist in explaining to consumers how important the proper repair of their vehicle is to the safety of the occupants of the vehicle, like their family. Yes, in my opinion, shops that are certified will soon no longer need DRP or have to rely on DRP to get customers into their shops.

Lucky Papageorg: Shops have finally said enough is enough. They understand that if they are going to do more than just survive in the future, they must create a customer base who trusts them to do quality repairs. The only way that can be accomplished is through training and having the proper equipment. The only way to be able to afford both of those and have the technicians and the support

staff to properly research, document and administer the process is to charge every penny of what it costs and also make an ROI. Shops are taking the time to explain the situation, not just complain about it. When they explain the situation, they are finding more times than not the customer understands and is willing to pay what it takes.

At the same time, shops have realized that the DRP model has outlived any benefits it might have once had. They have learned that if they do not sacrifice the customer relationship, which is at the foundation of ALL successful businesses, to just get more work from an insurer, they can get paid for a quality job and be able to accept the liability for what they do. They do not have to work at a frenetic pace, burning out technicians and cutting corners to satisfy unreasonable time frames imposed by insurers which only leads to more delays and frustration for their customers and technicians. Part of the learning process and realization is that shops must learn to market their strengths and draw the customers to their doors, NOT have them sent to them. Shops have to get past the mindset obstacle that they cannot turn down a job. Many shops have grown to understand the importance of qualifying the customer and their insurer, if one or the other is not willing to pay for proper repairs, that job has to go down the road. The collision industry can no longer subsidize insurers at the expense of their own business and customer.

The bottom line benefit is that the vehicle is properly and safely repaired. The vehicle owner and those who share the roads with them are kept safe. The business benefits because, as they perform proper repairs and educate their customers, the shop’s reputation soars. They are better able to staff and equip their facility in order to continue performing a quality-driven, safe repair which is what the vehicle owner expects. Yes, OEM certification will be the key in the future. We are already far beyond the repair methods of the past. The everincreasing technology in today’s vehicles, combined with customers’ expectations, leave no room for a seatof-the-pants repair that merely looks good. There is no room for any repairer who is not following proper repair procedures using the proper equipment. The window is closing quickly for anyone who is not keeping pace. Shops are already realizing the importance of certification. They are also realizing that they cannot be all things to all vehicle owners. They must focus on two or three brands for certification. It is far too costly to do any more than that. Shops do not have to go to the Kentucky Fried Chicken extreme of ‘do one thing and do it right,’ but at

the same time, they cannot overextend their capabilities.

Linden Wicklund: There are many loud shops that talk about the benefits of leaving the DRP model behind, but I do find there are just as many that will talk one on one about the benefits of staying with DRPs. It all seems to stem from control and power dynamics. OEM/brand specific certifications seem entirely different than DRP relationships in many ways, but these certifications are another way to navigate control and power.

Aaron Schulenburg: We see more and more members communicating that they are joining SCRS for access to information. As an association leader, it is obviously a rewarding response to know that the information and resources we are producing is what is stimulating new member interest, but it also reinforces this question. Repairers are seeking ways to increase their knowledge and justification for the necessary tasks associated with a repair, because both of those provide greater flexibility and potentially a new, more sustainable business model. More shops seeking out ways in which they can document, justify and articulate the repair process illustrates the shift the industry is going through to focus on comprehensive repair documentation to reinforce comprehensive repair quality. The biggest change driving the shift is the requirements driven by the increase in safety technology, much of which was championed by the insurance industry. This is all a response to more technologically advanced vehicles that require a greater emphasis on repair accuracy and recovery on the tasks being performed. Certified networks simply represent a shift in referral options that focus on reinforcing that adherence to procedure and quality, rather than referral based on cost containment. I think it’s a logical conclusion for many.

NJA: How are shops working to address cycle time concerns?

CB: The recent pandemic that has resulted in the lack of availability of parts combined

with the changes that have resulted from the inclusion of AI [artificial intelligence] into the modern vehicles coming into shops today has certainly put the collision industry’s ability to deal with change to the test, and cycle time is one of the biggest obstacles shops are dealing with today; however, history shows that those in the collision industry are like chameleons, and they have learned to deal with things as they come. As an example, look back at the change from body over frame vehicles to unibody vehicles. This change seemed enormous at the time. Now, it was just part of evolution, and I am sure the collision industry will deal with this next evolution as it comes.

LP: Shops are paying more attention to a set repair process from the start. Whenever it is possible, they do a thorough dismantling, analysis of the damage, prepare a blueprint of the repairs and document the process following OEM requirements. They order the parts and do mirror matching when the parts come in. Once EVERYTHING has been identified and received, the actual repair process begins. Starting and stopping repairs and shuffling vehicles in and out of the queue is the death knell if a shop is trying to control cycle time. Shops also must control the ‘mix’ of repairs in order to fill in between major repairs in order to keep the flow going and best utilize specialty areas such as the frame machine and spray booth.

LW: Cycle time no longer is a one-size-fitsall defined thing to be managed. Shops are segmenting the overarching cycle of getting a vehicle through the shop in new ways. The change is figuring out how to track and improve each segment of the cycle. Starting and stopping work based on supplement approval lags has become a major pain point that we are trying to address through legislation. Our existing legislation in MN calls out 15 days to inspect a vehicle that is drivable post-accident, five days for a nondrivable and “promptly” for supplements. Even with that existing language, it is hard to get insurance agencies to send someone out or even respond within those timelines.

continued on pg. 28

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AS: It’s a really difficult time to ask that question, as there are so many external factors outside the repair facility’s control adversely affecting the overall length of repair. Parts challenges, workforce shortages, delays and scheduling conflicts that are introduced through unnecessary inspection, approval and supplemental process redundancies can all affect cycle time, length of repair and the time the consumer is without their vehicle.

Part of the due diligence many repairers are doing is trying to be more thoughtful in scheduling and going to greater lengths to address the damage more extensively up front, so all parts can be ordered before cars are rendered inoperable; they are even occasionally finding workarounds to prioritize work in different ways than they have in the past. It becomes less about what comes in Monday vs. Friday and more about what comes in this month vs. next month. Ultimately, every repairer wants the time in process to go down because every shop is carrying more work in process than ever before, and many times that means holding more inventory of parts purchased, which can often affect cash flow. Finding ways to remove obstacles is to the repairer’s benefit.

As an industry, we need to collectively work toward that. The outdated ideology of ‘I can’t see it, so I can’t write it’ only leads to unnecessary delays and extensions, when parts could otherwise be accounted for, ordered and availability determined.

NJA: How is the industry working to better educate consumers and legislators, and what more needs to be done?

CB: Consumers and legislators need to be educated on just how important it is to repair the modern vehicles on the roads today as per manufacturer recommendations and safety related bulletins being put out by the manufacturers of these vehicles. Legislators need to be informed and educated on how insurers currently downplay the importance of such documentation in order to keep from what is required to repair these types of vehicles safely and properly.

LP: Speaking for AASP/MA, we have really stepped up the education process for both consumers and legislators. We have a cable TV show, Auto Sense, on which we discuss – and educate viewers – on the many issues faced in the claims and repair process. We educate our members on how to better speak to their customers and create an ally in the process. We have brought legislators into collision repair facilities as well as vocational schools to show them what it takes to fix today’s vehicles. We put blindspot monitors in their hands. We show them, rather than just explain, what is required to perform quality safe

repairs and why. The better educated we are as collision repairers, the better we can educate both our customers and our legislators. This education process can never slow down…it must be at the forefront of every discussion with customers and legislators.

LW: Our organization is working with our members to develop sample and template tools to use during communications with customers, insurance companies and legislators. At the same time, we are working on educating shops about how to adapt to the changing environment. Insurance companies are going to continue to lean into AI and remote workers, which means the documentation shops provide with repair plans needs to stand on its own. The verbal negotiations and baseline knowledge that came out of long-standing relationships between shops and insurance company team members are not coming back. There simply isn’t the workforce to support that old way of doing things, but the burden of this change can’t fully fall to shops.

AS: SCRS has been working hard to create material that makes it easier for the repair facilities in the industry to communicate to consumers about the tasks we perform and the status milestones of the repair process. Collision repairers provided a lot of encouragement to us surrounding our ‘Quick Tips’ series on the SCRSCollision YouTube channel that we’ve been producing with Mike Anderson (Collision Advice) and Danny Gredinberg (Database Enhancement Gateway), and through some of our audience feedback, we started to shift towards consumer-focused topics. I think it’s been a really effective tool, as we’ve watched repair facilities start using these as lobby loops and sharing to their local community pages on social media. It’s important that we create more informed customers who are knowledgeable enough to ask the important questions and to advocate for what they want out of the claims and repair process. We hope these resources help add to that level of comfort for vehicle owners, while also providing the industry a free marketing tool.

NJA: Where are we going as far as the tools needed to perform diagnostics and scans? Are non-OEMapproved tools going to be enough? Where does the insurance industry come into play?

CB: If shop owners plan on staying in business, they must also plan on purchasing the proper equipment needed to repair modern vehicles on the roads today safely and properly. The insurance industry needs to stop playing ‘let’s make a deal’ and pay for repairs at rates that will allow the repair shops to purchase the needed equipment

to repair these types of modern vehicles safely and properly.

LP: The tools required are themselves becoming more and more technically sophisticated. They have to keep pace with how today’s vehicles are being constructed, both electronically and structurally. Today’s damaged vehicle could kill a technician who is not properly trained and protected with the proper PPE. If you attempt to perform a welding technique that may have worked less than a decade ago, you could completely destroy the electronics in today’s vehicle.

You could have all the top-of-the-line, most modern equipment available, and it will not be enough if you are putting them in the hands of an inadequately trained technician. Some shops are trying to get by with non-OEM tools, but they have been shown to have their limitations. In some cases, the limitations may be ‘minor,’ but in the overall scheme of things, there is no room for guessing or uncertainty. With proper training and OEM tooling, the uncertainty is all but eliminated.

As has always been the case, insurers forget their place. Collision repairers are the experts in the process. We are the ones who will ultimately be held responsible for the repair if there is a failure, whether it is a minor issue or – worse – a catastrophic one. Insurers took on the responsibility to insure and protect the vehicle owner financially should there be a loss. They continue to attempt to mitigate their financial role in the claims/repair process by whatever means possible. In many cases, they do so without having to justify why. They need to do their job and allow us to do ours.

LW: Scanning and diagnostics is an interesting space for mechanical and collision shops to learn from one another. In the simplest terms, mechanical shops embrace aftermarket offerings since they are often engineered to solve a problem or improve upon the OEM originals, while collision shops are working to restore vehicles to original condition, making OEM parts and procedures the preference. ADAS and the wide array of technologies in new vehicles complicate this space. I have asked shops which codes directly correspond to a fault that impacts safety versus codes that are non-critical, and there doesn’t seem to be any standardization or practical working knowledge that would protect consumer safety. The OEM versus non-OEM debate is actively shaping the business models that will be sustainable in the future.

AS: Consumers should be able to choose a collision repair facility capable of performing quality repairs, in accordance with the specific procedures detailed by the vehicle engineers, with the confidence that all of the

specified repairs were performed. They should have the right to choose their repair facility, and independent repair facilities should be able to invest in the training, equipment and skill set development to meet the rigorous demands of sophisticated, modern vehicles, enabling them to present consumers with good options to keep them safe. Those options and capabilities exist today. Scanning and diagnostic work is how we verify with the vehicle that these systems have been restored, and independent repair facilities have the access and ability to use the proper tools to communicate with the vehicle in the manner the engineer intended them to; that is not the consumer’s greatest challenge.

While this expectation is achievable today, it is routinely denied and disregarded in claims practices and objected to in state legislative hearings by many companies in the insurance and aftermarket community –many of the same companies who currently support and champion the right to access vehicle data, campaigning that independent stores need to be protected. What consumers deserve is post-collision vehicle repairs to ensure that their vehicle is repaired to such a standard that, should it be in a subsequent accident, its safety systems will operate the same as the day it left the factory. Well-trained, well-equipped independent repair facilities are not struggling to gain access to collision repair procedures and tools, as much as they struggle with bill payers looking to avoid paying for the associated costs necessary to accomplish the task.

NJA: Looking forward to the industry’s future, what will be the biggest obstacles that shops and associations will need to succeed down the road? What will shops need to do to attract and retain young employees in the future vs. what worked in the past? How big will the EV wave be, and how can shops prepare?

CB: The EV wave is here now, and shops and associations need to rethink and retrain the workers and people dealing with this new type of vehicle because they are here to stay. Shops need to stop playing ‘let’s make a deal’ with insurance companies that refuse to pay for certain operations required to repair technologically advanced vehicles, like scanning the vehicles before making repairs and resetting certain ADAS systems when a vehicle has been in a collision and repaired. In the past, many shops have taken the position that if the insurer doesn’t pay for an operation, they simply will not perform that procedure or operation. If that position is taken on these vehicles, people’s lives will be put in danger.

continued on pg. 30

Collision shops need to stop buckling to insurers that refuse to pay for what is required to perform safe and proper repairs and just say no! Collision shops also need to face the fact that many of the older technicians currently in the industry are not going to be willing to start all over and relearn how to repair these modern type vehicles. As a result, shops will need to bring in young fresh technicians willing to learn how to deal with the highly computerized vehicles equipped with AI already in the vehicles and more to come.

LP: Shops MUST keep pace with technology and remember their role in the claims/repair process. They must not let fear rule their decision-making process. They must remember they are the experts and that the buck stops with them when it comes to safe quality repairs that they can accept the liability for having performed. Associations MUST provide the tools to their members and the industry in the form of education and ongoing support to their members and consumers to guarantee the longterm viability of the collision industry for the decades to come. Collision repair associations must work together to provide the services and benefits that so many other professional associations provide their members. We must model ourselves after exemplary associations representing professionals in the medical, legal and even the insurance industry. We are professionals!

Shops must flick the switch and change their mindset from being fearful of charging what they are worth. Once that is accomplished, we will be able to pay our current truly talented professionals what they are worth. We will then be able to draw new and younger blood into this industry, which is exciting and innovative and becoming more so every day. We must be more involved at the vocational school level. We MUST develop mentoring programs within our own facilities to train and nurture young talent coming out of the vocational schools. All too often, we expect them to hit the ground running as an A or B tech. All we do then is frustrate them and push them to

some other industry and vocation.

Repairing EVs is a tidal wave... a tsunami that will wipe out anyone not looking to the future. Actually, the future is here, because if you have not already been keeping pace and staying up-to-date, you are putting yourself in potential danger. If you are a collision repairer and do not recognize an EV or hybrid when it is towed into your facility and do not know the proper handling and storage methods, you could return to a pile of ashes in the morning, and that pile of ashes could include your shop. If it makes it into your repair queue, you have to know how to be sure it will not seriously injure or kill a technician. It will be all about the proper training and knowledge from the get-go, not just the repairs process. Shops must make the decision to learn as much as they can and then make sound decisions with that knowledge. Shops must determine what role they want to play and what types of vehicles they expect to be able to repair in the future, but they cannot wait, they MUST make that decision NOW!

LW: Regarding EV, the biggest factor for shops to consider is not the overall percentage of EVs on the road but the percentage of their existing customers who will be adding an EV to the line-up of cars in their driveway. Customer retention is a key factor in shop success.

The biggest obstacles are staffing and disruptive technologies. Staffing is a problem worldwide and across industries, so focusing on the traditional pipeline that has few entry points will not work. Shops are going to have to restructure positions and check their own assumptions to adapt to and attract the future workforce. The retention rate of new technicians in this industry is very concerning. No matter how hard the industry works to attract talent, it is difficult to make up for 50 percent of new technicians leaving the industry in the first five years.

AS: Our association’s role now, and in the future, is unwavering; it’s to be a source of information, to be a venue for education and to be a voice of advocacy. The issues will adjust and we will adjust with them. Things like the blend study (scrs.com/blendstudy) and our healthcare (scrs.com/healthcare) and 401k solutions (scrs.com/401k) are perfect examples of how we as an organization serve not just the three legs of our mission but the needs of our members. I think they are all indicative of the type of work and effort that lies ahead for us in helping not just our members, but the entire industry, remain vibrant and attractive and an ideal place for people to start and end their careers.

We’ve never had more at stake as far as complexity and challenge, but I also see so many business owners rising to the occasion and championing a new day for the industry. The future looks expansive, specifically for those looking to adapt with it.

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Backlogs, Parts Delays & Tech Shortages Linger: How Shops Adapt to Survive

To say the collision repair world has its share of frustrations would be an understatement. It’s surely no secret the industry has been dealt some bad hands over the years, especially in recent times. Shops already had daily struggles to contend with and then the pandemic came and spewed out more. Once the Covid surge settled down, the average shop suddenly found itself faced with a triple threat: A backlog of work, a growing list of backordered parts and a short-handed staff. Now with the pandemic behind us, has that backlog of

work finally let up? Are any of the related woes of the past few years finally becoming worries OF the past?

According to AASP/NJ Executive Director Charles Byrant, who spends hours talking to shop owners across the Garden State each day, the backlog does seem to be lessening, but it doesn’t necessarily mean things are getting better.

“Shops were unbelievably busy with cars sitting everywhere at the shop. Now, I’m hearing that is no longer the case for many,” Bryant reports, while also noting

that parts shortages continue to pervade the industry for numerous repairers.

“Shops can’t get parts in and they don’t want to start a job and then get stuck halfway if they can’t get them in,” he says. “Ordering parts is still a problem.”

Anthony Trama (Bloomfield Auto Body; Bloomfield) still has work booked out about four weeks, but compared to where things were a year ago, he does confirm that business has leveled off a bit.

“We will have to go through a process of confirming

parts are coming in, but we are seeing a lot less crazy backorders,” he shares. “I won’t say we’re back to preCovid levels, but it’s a lot better than it was.”

Tom Elder (Compact Kars; Clarksburg) believes a few factors come into play when considering whether business has in fact “slowed down” for shops. While he has a number of cars on his lot, he can find room to fit a customer in the next day, unlike some facilities that are still scheduling work weeks out.

“I think the insurance companies are doing a much better job of steering their insureds away from shops like mine who try to get paid for the work we do,” he suggests. “We charge for the labor rate differential - the difference between what we want to be paid versus the unrealistic rate of the insurance company. If the insurance company won’t pay or the customer won’t pay the difference, we won’t fix the car.”

“Everything is more expensive than a year ago,” he adds. “Insurance rates have gone up. Credit card rates are up. Gas prices aren’t coming down. People are not driving their cars for pleasure as much, so there are a lot less accidents.”

And let’s not forget the major influence the weather plays into an influx of business - or not. “I wholeheartedly expected the phone to ring off the hook the day after Memorial Day,” Elder notes. Brad Denning (Dobbs Auto Body; Springfield) shares a similar view when it comes to insurers being the problem. His shop’s backlog has slowed down a bit as they’ve decided to be more selective about who they work with.

“A lot of insurance companies are fighting us so hard because they don’t want to pay,” he shares. “We just don’t have the administrative staff to sit there and fight with them. We started to pick and choose what cars we are bringing in and what cars to not bring in. We will only take cars from insurers who negotiate and will pair our fair rate.”

Autotech Collision Service (Sewell) owner Dean Massimini lends another perspective. He believes the reason he still has a decent backlog of work is due to other shops in his area closing their doors.

“It seems that shops are dropping like flies,” he expresses.

When it comes to parts woes, Massimini finds it’s eased up in most cases.

“It’s sporadic. There can be one car that is just a nightmare but for most others, it goes smoothly.”

Many shops still experiencing an excess of work report that not too much has changed in the area of parts delays and having the manpower to get the work done.

Gil Alfaro (Dawson’s Auto Collision & Repair; Ocean Grove) is still finding himself working overtime to get cars off his lot. He isn’t seeing much of a slowdown with

continued on pg. 36

continued from pg. 33

work coming in, and notes that while locating parts is still a problem, it’s not as bad as it was. In terms of availability, Alfaro is finding that most problems lie with American manufacturers. For example, he’s been waiting on a bed for a GMC for eight months - while the vehicle continues to take up space in his lot.

His main problem, however, is finding workers to come on board.

“I can’t get people to work,” he laments. “The technician shortage is still the biggest issue. I’m down two people and I just can’t find qualified people to work.”

With so many challenges to face, most shops are discovering they must adapt in order to make things work.

Elder has been able to fill vacant positions at his shop that two years ago he struggled to fill. He’s had success filling spots with vocational school students who came on board to train; one is starting full time after graduation and another is headed to secondary school for more training.

“The industry didn’t do a good job training help,” he believes. “The vocational schools have just recently started to get better at it. I don’t think that the vocational programs are well enough funded enough to really provide what we would call ‘entry level skills.’”

Massimini agrees. In fact, he recently heard of a

vocational school program that is now defunct. “I don’t know if there is an answer,” he says of the shortage. “It’s just a struggle and we feel it. The only thing to do is to bring in young people and train them a little at a time.”

The team at Bloomfield Auto Body have been adjusting and adapting to the way things are in order to make things work. Trama says his shop has been juggling bigger jobs around smaller ones, spacing them out and doing what they can to keep customers happy. New measures have had to be taken to get parts in such as working with dealerships to hunt down parts.

“If a dealership tells us a part is on backorder, we ask them if they can try to locate it via other dealers in the area,” Trama shares. “If it’s a small enough part, not a bumper or hood or any big piece, but something that can fit in a box, it can be sent to us by UPS. Sometimes you need these little small pieces to finalize a job.”

Ultimately it’s about doing what is needed to keep customers happy and get their cars out the door. The auto body shop world is not expected to be worry-free anytime soon, if ever. But this industry always seems to find ways to cope with whatever is dealt its way. In this case, many shops are showing their resiliency as they adapt to changes while doing whatever they can to survive.

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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

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1st Vice President - Daryl Carman

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2nd Vice President - Mike Ronayne

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The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs

With hurricane season in full swing, it’s important to have a program or be prepared for a windstorm.

Here are a few basic steps to follow:

Pre-Storm Precautions - Evaluate all building structures as to the damage they could sustain. Inspect the grounds for the condition of trees, as dead or dying trees could cause damage or injury during high winds. Develop a list of emergency phone numbers of contractors.

Building Precautions - Close unnecessary openings and make windows and doors weather-tight. Check for broken window panes and nail down loose window framing. Close windows on the windward side of a hurricane and open windows on the side of the building away from the storm’s approach to reduce dangerous pressure differential. Inspect roof coverings and roof perimeter flashing. Secure or remove work in progress, temporary structures, trailers and scaffolding.

Post-Storm Actions – Immediately initiate salvage activities. Develop plans to secure the facility against looters and trespassers.

Always review and update your action plan annually. As always, please call us if you have any questions regarding your insurance coverages.

Mario DeFilippis AAI Vice President Wharton Insurance Group

800-221-0003 (ext. 1320) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

OUT OF BODY (AND MECHANICAL) EXPERIENCES

continued from pg. 10

We headed down to the park not far from my house (actually, in Nutley, there is a park not far from EVERY house) and we started off nice and slow. Penny is very well behaved. She’s very friendly and other dogs don’t bother her. We walked to the end of the park to our Township’s beautiful Area of Hope, a peaceful place that includes several benches surrounded by beautiful flowers and shrubbery with memorial plaques dedicated to loved ones who passed during the pandemic.

After a brief rest, we started back. The wheelbarrow belly wasn’t as cooperative on the return so we stopped off at a bench and watched the colorful fountain at what Nutley residents call the “Mudhole.” By now, it was dark and the trees in the park were lit up with decorative lights that made it look like a Norman Rockwell painting. Penny and I were back on our way.

As we got to the exit, I had to make a decision: Walk up the sidewalk that was about 20 yards to my left, the grass hill that was about 30 yards to my right or the stairs that were about 10 feet in front of me?

You know damn well whichever one I chose was going to be the wrong one, right?

Those damn stairs.

I picked the one place those beautiful lights weren’t.

And fell right on my 62-year-old ass.

Of course, I tried to jump right up and make sure that no one saw me. Luckily the only one watching was Penny and I’m pretty sure I heard her laughing under her breath. I guess the embarrassment and the adrenaline got me on my feet and up the hill to my house. I felt pretty lucky.

That is, until I tried to get out of bed the next day.

The alarm went off and I rolled over and started to get out of the

bed when my lower back said, “Not so fast, fat ass.” I haven’t felt pain like that in years. The next few weeks were consumed by Tylenol, massages, acupuncture, heated blankets and anything else I could find to lessen the pain.

Thankfully, it eventually got better. It just had to heal. I was lucky this time. I mean, how many people my

age fall like that, break their hip and are never the same again?

Needless to say, I haven’t been on a walk since.

And I hear Home Depot has a sale on wheelbarrows.

Of course it’s better than the alternative, but still.

It sucks getting old.

continued from pg. 12

necessary for us to charge copays and coinsurance. There are shops that insist they’ll “never charge the customer,” but that decision simply condemns the industry and perpetuates that catch-22, allowing insurers to continue underindemnifying these claims. This is part of their plan and strategy as they look five, 10, 15 years down the road. We are our own worst enemy because we keep allowing this to happen. When will shops educate themselves enough to know right from wrong? Chasing a unicorn! We are the ones who should know what’s best, and if we don’t, we need to do a better job of figuring it out because the liability for those repairs falls on our shoulders, not the insurers. We’re the ones in the trenches, day in and day out, and we need to do better for our customers and for ourselves.

Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 241 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.

Thank you for your many years of loyalty.