EXECUTIVE DIRECTOR’S

It’s Broken; Let’s Fix It!

by CHARLES BRYANT

“If it isn’t broken, don’t fix it” does not apply to the current situation between the collision industry and the insurance industry!

The insurance industry’s ability to control collision shops’ Labor Rates and to limit which repair procedures it will and will not pay for puts New Jersey consumers’ lives at risk! This is not a matter of collision shops simply pushing to get higher profits from insurers; it is a matter of insurers ignoring the fact that today’s vehicles are nothing like the vehicles that were on the roads a few years ago.

As I have mentioned numerous times before, modern vehicles must be repaired according to position statements and repair procedures published by the vehicle manufacturers, not according to restricted repair procedures issued by insurers. The days of Let’s Make a Deal on how vehicles get repaired and what procedures will or will not be paid for (that insurers have enjoyed for years) is over. I want to make sure everyone reading this message understands what I just said: Those days are OVER! Unfortunately, it appears that the insurance industry isn’t the only one that just doesn’t seem to get this. So many collision shops have come to believe that whatever the insurance industry says is just the way things have to be, whether they like it or not. Well, nothing could be further from the truth. Because insurers have been utilizing the practice of steering and playing hardball with the collision shops for such a long time, many shop owners have given up – they repair damaged vehicles at whatever Labor Rate and in whatever manner the insurers are willing to pay. This may have worked when the vehicles being repaired were fairly simple; in the past, ignoring certain recommended repair procedures did not matter on those models nearly as much as it does with today’s vehicles. I don’t mean to discredit anyone by pointing out what has transpired over the years, which has brought us to where we are today. Shops had every right to say, “If the insurance company is not going to pay for a procedure, I am not going to perform the procedure for free.” Years ago, that meant the repair may not have been performed as well as the manufacturer recommended, but it was repaired to a level that the public would accept. For the most part, omitting certain procedures because an insurer would not pay for them did not prevent the vehicle from functioning the way it was intended. Today, that is an entirely different story. Today’s vehicles are equipped with many features that affect the occupants’ safety, so procedures must be performed to ensure the vehicle functions as designed by the manufacturer to protect the occupants when involved in a collision. I have a message for the shops that rightfully say, “If the insurance company won’t pay for the procedure, I am not going to perform the procedure.” That message is: I think you better go speak with an attorney about that position. I would be willing to bet that the answer you get will be that avoiding a procedure that is listed in a position statement or published by the manufacturer because an insurer was not willing to pay for the procedure will not relieve you from the liability if someone is injured in a collision because the procedure was not performed.

Vehicles must be repaired according to the position statements and repair procedures published by the manufacturers, or people are eventually going to die as a result. There’s only one way to stop the insurers’ improper conduct and unwillingness to pay for the repair procedures to restore damaged vehicles to a safe operating condition: The collision industry must simply refuse to repair vehicles in any manner other than what is dictated by the manufacturers’ position statements and published repair procedures. As such, I would caution collision shops that have been intimidated into repairing damaged vehicles in a manner other than as dictated by the manufacturer. If anyone would like to discuss this further, I can be reached on the AASP/NJ Hot Line at (732) 922-8909.

NJA

LEADING THE INDUSTRY LIVE: RETURNS!

COURSE RECAPS BY JOEL GAUSTEN PHOTOS BY JARGAPIX

For the first time since March 2019, the collision repair industry returned to the Meadowlands Exposition Center (MEC) in Secaucus for the 44th Annual NORTHEAST® Automotive Services Show – live and in person! Hosted by AASP/NJ, the three-day event provided an ideal opportunity for automotive and collision repair professionals to re-educate with leading trainers and reengage with industry peers. “Starting anew after COVID-19 was groundbreaking, but NORTHEAST provided an ideal opportunity to get together in one place yet again,” AASP/NJ Past President Jeff McDowell says. “We all had a great time being back in person – reconnecting with old friends and gathering with the suppliers who take care of us all year – and exhibitors enjoyed connecting with quality customers in person once again.”

“AASP/NJ has always been an industry leader, and we’re very proud to be the first to come back with a show of this kind after 18 months of doing everything virtually,” comments Thomas Greco, AASP/NJ secretary and president of NORTHEAST event managers Thomas Greco Publishing. “We felt it was time to get back to some sense of normalcy. Since we moved back to New Jersey over a decade ago, NORTHEAST has shown amazing growth every year. Of course, due to the pandemic and several other factors, it wasn’t a surprise that the numbers were down at this year’s show. But those who attended were the ones our exhibitors wanted to see.” BASF Business Development Manager and NORTHEAST education presenter John Shoemaker agrees. “The quality of attendees at this year’s event was above the scale expected; it was apparent that attendees were truly interested in being here by the way they asked the right questions to get the answers necessary to help advance their businesses.” The ability to connect with decision makers at NORTHEAST is an important factor for many exhibitors.

“National shows are great, but few of those attendees are actual buyers; they’re mostly spectators. At NORTHEAST, we get to talk to the people who make the purchasing decisions,” according to Lyn Tetreau, president and CEO of Lift King Products.

One vendor commented in passing: “There may not have been as many attendees this year, but we still sold several high-ticket items!” Attendees also enjoyed the ability to speak with exhibitors in more depth. Jim Kowalak, AASP/NJ Hall of Fame honoree and director of operations at Daytona Toyota, traveled from Florida to attend NORTHEAST 2021. He was accompanied by his son, James – an estimator at the dealership’s collision center – and Parts and Service Manager Kurt Menschel.

THE OEM PATH TO PROFESSIONAL REPAIRS

“Quality means doing it right when nobody else is looking.” When Gerry Bonanni (Ford Motor Company) expressed this belief during the 2021 NORTHEAST® Automotive Services Show’s first educational presentation, he perfectly summarized the spirit of professionalism that inspired his – and every other – course taught throughout the weekend.

Along with co-presenter Pete Fryzel (I-CAR), Bonnani presided over “OEM Workshop: Ford Discusses Accessing Repair Information, Collision Sectioning Procedures for Aluminum.” The duo delivered an extensive overview of resources (including FordCrashParts. com) available to technicians who are committed to performing safe and proper repairs. When it comes to accessing complete and up-to-date repair

Gerry Bonanni information, Fryzel stressed that the actual manufacturer of the vehicle will always be the most reliable source.

“ALLDATA still has a big share [of industry users], because it’s kind of like a hub of putting it all in one place. But I can tell you that you’re going to find that the manufacturer’s information is the most current and probably the most accurate.”

Fryzel also discussed the value of position statements, particularly with respect to Peter Fryzel pre- and post-repair scans.

“[From] 2010 on up, Ford is basically saying you need to scan that car before and after you do the repair to be able to make sure that any and all fault codes are addressed or identified.” Bonanni emphasized Ford’s eagerness to supply appropriate repair information to the collision repair industry. “Our main goal is to return that vehicle back to its original structural integrity and maintain the quality that Ford had when that vehicle left our plant.”

continued from pg. 23

“I prefer the show not being too crowded. I had the chance to have some valuable conversations with vendors, resulting in purchases that wouldn’t have been made without the extra time. It was a great show and even better seminars – I couldn’t believe they were free! The trip up from Florida was well worth the experience. I hadn’t been up for a few years, and even though COVID-19 happened, progress with new ideas and products didn’t sit still!” “We could not be happier with our decision to come to AASP/NJ’s show,” Menschel adds. “Jim has been telling us about the value in this show for years. The educational seminars alone were enough to have us come back again next year. Mike Anderson’s conversation regarding getting paid and rethinking what we are asking for with DTCs was informative to the point that I wish we had sent all our estimators to that class. Dave Gruskos from Reliable Automotive Equipment provided great content on how we should be interacting with our business partners and the quality of our facility. Next year’s show is already being talked about, and I cannot wait to attend. The value is there for everyone!” As AASP/NJ Treasurer Tom Elder points out, “NORTHEAST was the first show to come back out of the box. Regardless of anything else, the industry gathered together and had a meeting of the minds for the first time since the pandemic.” But NORTHEAST 2021 wasn’t just the first time the industry returned to a live event since the pandemic began – it also boasted the debut of AASP/NJ’s first Young Technician Award, given to a promising young technician who’s been working in a member shop for less than five years. On Friday night, AASP/NJ Allied Board Member Joe Amato, Sr., president of the Amato Insurance Agency, presented Casey Dombroski of Rico’s Auto Body (Robbinsville Township) with a plaque and a $5,000 SnapOn tool grant, funded by a generous donation from the Utica National Group Foundation.

continued on pg. 32

THE PERILS OF POOR PAINT PROCESSES

No shop operating in 2021 wants to repair vehicles slower, but many shops neglect simple steps – or fail to recognize unexpected bottlenecks – that can make even the most seemingly productive facilities grind to a halt. During “Productive Refinishing Processes,” BASF’s John Shoemaker offered attendees some suggestions on how to enhance logistics in their shops’ paint areas, among other things.

To demonstrate how production missteps can negatively impact cycle time, Shoemaker shared his experience consulting with a facility that complained about its paint process being too slow. As he observed this shop’s processes, everything appeared to be going well until he heard a crew member

John Shoemaker call out for polyester filler. It turned out that some of the shop’s techs were putting primer on too wet, resulting in shrinkage and “pimples” that had to be filled in. To worsen matters, these mistakes kickstarted a chain of events that resulted in vehicles taking too long to dry. Not surprisingly, Shoemaker also pointed out that parts play a key role in making sure production progresses at a suitable pace. He encouraged attendees to verify that they had all the parts for that RO ready to paint at the same time, enabling these parts to dry simultaneously before being put together.

continued from pg. 30 Awarding the tool grant was a definitive event highlight for Amato. “We awarded the first-ever Young Technician Award to a deserving young man. We were really excited about giving this opportunity to support someone who has recently committed to the industry and needs some help filling their tool chest. I was honored to sit on the selection committee.” Additionally, the first evening of the show featured a surprise for AASP/NJ Executive Director Charles Bryant who received the 2020 James Moy Award for Dedication to the Automotive Industry, presented by AASP/NJ Past President Jeff McDowell and AASP/NJ Treasurer Tom Elder. Bryant was “shocked and honored” to be recognized for his many contributions to the industry’s improvement. He believes that strengthening the automotive community is the most important reason that NORTHEAST exists.

“One of the main reasons to attend trade shows is to stay up with the times. Right now is one time in the industry’s history that everyone should be at NORTHEAST. Advancing technology is changing cars into computers, and as scanning and recalibration become increasingly prevalent, there’s no better place for the people repairing those vehicles to catch up on the new equipment that makes their jobs easier. I’m amazed by the products that have been developed to aid in their job. If I were a shop owner or employee, I’d definitely make it a top priority to attend NORTHEAST!” “Most trade shows that have come back have been seeing an average of 60 percent returning exhibitors,” Greco adds. “We were ecstatic to see 82 percent of ours return to fill the MEC. We also want to thank the industry experts who presented amazing seminars and the attendees who made the effort to get back to a live setting. We think the industry is ready and hope that SEMA and

continued on pg. 34

SHATTERING THE DTC MYTH

If you perform scans before and after a collision repair (and you should), then you know that diagnostic trouble codes (DTCs) provide a path to identifying and addressing issues within a vehicle; however, they are far from the final word in properly pinpointing areas of concern. Finally returning to NORTHEAST in person, Collision Advice’s Mike Anderson led “It’s Not Just About DTCs: Overview of Calibrations,” with remote input from co-presenter Jake Rodenroth, formerly of AsTech. The pair of collision professionals roused attendees with their high-energy discussion on why technicians must look beyond DTCs if they hope to repair a vehicle to OEM specifications. “If all you’re doing is hooking up a scan tool or using a remote diagnostic company to scan a vehicle and all they’re doing is looking for DTCs, that is not enough,” Anderson said. “You cannot rely on just the presence of DTCs.”

This message is critical when considering that DTCs will not trigger under certain circumstances.

As an example, Anderson noted, “If you have a lane watch issue on a Honda or an Acura, it will not trigger a DTC. You have to check the live data.” Mike Anderson

Additionally, the discussion took a memorable turn when Anderson shared that he only endorses OEM scan tools in the field, explaining that he has seen aftermarket tools fail in tests that compared them to original equipment products.

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THE REWARDS AND RISKS OF OEM CERTIFICATION

For a growing number of shops in the Garden State and beyond, becoming certified through one or more OEM has been a sound and profitable business decision. Even so, a number of shop owners are on the fence over taking this step, and it’s time that they realize that there is often more to fulfilling an automaker’s requirements than meets the eye. During “Getting and Staying Certified – OEM Repair Requirements and Relationships Intertwined,” Dave Gruskos of Reliable Automotive Equipment walked attendees through the steep requirements behind many of today’s programs – ranging from the obvious (equipment and training expenditures) to the obscure (multimilliondollar liability insurance policies and clean bathrooms for both consumers and employees). According to Grukos, one of the most critical factors in maintaining an OEM certification is the shop’s ability to properly track its financials. He shared a harrowing tale of a certified shop in San Francisco that was locked up by the tax department, leaving dozens of cars that were referred by a sponsoring dealership left inside.

Additionally, he urged attendees to take a less-is-more approach in selecting how many programs to take on, as each manufacturer mandates its own set of stringent guidelines and demands. It’s not about racing to fill your walls with OEM plaques; it’s about working with programs your facility can realistically maintain. “All you do by trying to be certified by everybody is create an unmanageable mess in your company.”

continued from pg. 32 other trade shows will benefit from our willingness to get our feet wet and start the ball rolling.” For many vendors and attendees, NORTHEAST 2021 provided a much-needed break from social isolation. As one exhibitor expressed, “I’m glad AASP/NJ held NORTHEAST this year. Something has to give.” Amato quips, “It’s great to see people in their entirety again instead of just staring at squares on a screen.” “Everyone’s been happy to get back out in public this weekend,” Tim Morgan, CEO of Spanesi Americas, offers. “We’re ready for industry events to happen more often. Trade shows are the place to pick up business, and NORTHEAST always delivers promising customers.” Anna Todd, wholesale parts sales manager for NUCAR, explains the value of returning to NORTHEAST each year: “This business is all about socializing and building relationships, so there’s just no comparison to the interactions that happen with customers on the trade show floor.” Nick Mattera, co-owner of Innovative Solutions & Technology, was happy to spend time with customers as well. “After 18 months of waiting, it’s awesome to see our customers face to face and get a chance to display our equipment for them to check out.” “It’s nice to be back in public with customers and to see all the manufacturers in attendance, representing the industry,” adds Dave Green, managing director at Pinnacle Equipment. “Vendors were happy to see some customers walking around, comfortable without wearing masks,” AASP/NJ Allied Board member Mike Kaufmann acknowledged. “The show was well-organized and went smoothly, but we’re already looking forward to a bigger, better

continued on pg. 38

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continued from pg. 34 show next year.” Dave Gruskos, president of long-time AASP/NJ supporter and NORTHEAST exhibitor/Silver show sponsor Reliable Automotive Equipment, always enjoys the annual event and looks forward to next year’s iteration.

“It was exciting to have our team together at NORTHEAST. Reliable decided to be among the exhibitors on the forefront of returning to live events because we are truly passionate about being leaders in the collision repair industry. It felt very exciting to return to a live event and

INSIDE FRANK TERLEP’S TIME MACHINE

Although there is no shortage of issues to keep repairers and owners up at night in the here and now, the not-too-distant future will present challenges that many have not yet considered. NORTHEAST showgoers who attended “Collision Repair 2035: Trends and Technologies That Will Force the Collision Industry to Reinvent Itself by 2035!” presented by Frank Terlep (Auto Techcelerators, LLC), received an intriguing – and often downright stunning – look at how the collision repair industry could look just 14 short years from now.

For one thing, ADAS-equipped vehicles are poised to expand from 75 million in 2021 to 250 million in 2035. As ADAS grows, it appears unlikely that manufacturers will implement a one-size-fits-all approach to developing these systems across every make and model – which means more specialized skills will be needed on the shop floor. “The bad news is that they’re all different,” Terlep advised. “They all have different terminology and operating procedures.” Terlep’s course dove into a host of current and evolving technologies, including telematics, electric vehicles (EVs) and Artificial Intelligence (AI). Additionally, he observed that autonomous vehicles are still on the rise, despite the fact that inter-industry talk on this topic has slowed in recent times. “There’s a ton of autonomous testing going on everywhere. Don’t fall asleep at the wheel and think it’s not coming.”

Frank Terlep

get to see the industry in person again. As always, it was managed second to none, and we had a great time.” “We are glad to be back at NORTHEAST this year,” says Metropolitan Car-o-liner President Dave Demarest, Jr., an avid association supporter for many years. “We are looking forward to future opportunities to do it again.” “AkzoNobel had been looking forward to NORTHEAST for a very long time, and we’re thrilled to finally be returning to live events,” AkzoNobel Marketing Communications Manager Jen Poliski shares. “Since this

continued on pg. 42

PUSHING INSURERS TO HIT THE MARK

Insurers undervaluing vehicles is nothing new, but the trend has reached ludicrous proportions – with vehicle owners often left feeling they have no recourse to push back. As a way to help NORTHEAST attendees communicate options to make consumers feel more comfortable, presenters John Walczuk (ZB Negotiations) and Allen Lipp (Automotive Consulting Professionals) provided overviews of several vital topics during their September 11 discussion, “Using Total Losses, Diminished Value, Loss of Use and the Appraisal Clause to Increase Your Customer Referral Base.” As Walczuk explained, many insurers’ determination of vehicle values deviate from reality, typically by thousands of dollars.

“If any of your clients have F-150s, 250s, 350s, those things are under by $6,000, $8,000, $10,000. I’m not talking about your brand-new truck.”

To drive the point home, he referenced a previous encounter he’d had with a 1998 Dodge Ram that a carrier valued at $8,000; after Walczuk’s review, that same vehicle was priced at $17,000. In regard to diminished value claims, Lipp cautioned that such practices are on the decline as the used vehicle market continues to shrink. “Even with cars with bad history reports via CARFAX, people are paying more than the cars are worth. So, there’s not as much diminished value as there has been in the past.”

John Walczuk

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THE END OF WASTED LABOR

If there’s one thing that many shops excel at, it’s wasting time and resources.

With everything from cycle time demands to automotive technologies adding pressure on today’s facilities, shops often miss critical factors that could ensure a more streamlined process. Lee Rush of Sherwin-Williams made his stance clear during “Your Key to Success: Optimize Your Labor:” Shops need to implement processes to help them better utilize their labor, improve production on the front/ back ends and avoid practices that would make them “stumble and supplement [their] way through a repair cycle.”

As just one example, Rush noted the importance of getting Lee Rush needed parts in the technicians’ hands before the start of a repair. “It doesn’t make sense to jam something into production and start working on it and not have the critical parts, because there’s a high probability that you’re going to have to stop.”

Above all, he stressed that a number of industry trends – including the complexity of modern vehicles, the skilled labor shortage, the need to better utilize shop capacity and the looming threat of litigation – have led many shops to seriously reconsider their daily operations.

“For all of these reasons, the traditional methods are less effective. It’s becoming more and more difficult to sustain profitability and remain competitive. So, these challenges in the industry are driving us to implement process changes. One of them is ensuring that we have the correct parts and that these parts are mirrormatched.”

continued from pg. 38 is one of the first in-person shows over the last year and a half, we entered this weekend with a ton of excitement and anticipation, with proper consideration given to all safety precautions. It’s great to have our team together again, visiting with our customers on the tradeshow floor. We’re already eagerly looking forward to returning to NORTHEAST in March 2022!” AASP/NJ thanks these generous sponsors for supporting NORTHEAST 2021: Platinum Sponsor: BASF; Gold Sponsor: Ford; Silver Sponsors: PPG, NJ Parts of Flemington; Lanyard Sponsors: Innovative Solutions and Technology, Spanesi; Attendee Prize Sponsor: Axalta Coating Systems; and General Sponsors: Harbortouch and Sherwin-Williams Automotive Finishes. AASP/NJ is already working hard to plan NORTHEAST 2022, scheduled for March 18-20 at the Meadowlands Exposition Center. Visit aaspnjnortheast.com for updates on next year’s event as they become available. For more information on AASP/NJ, visit aaspnj.org.

Several lucky show attendees got the opportunity to take home a variety of special gifts during the weekend of NORTHEAST 2021, courtesy of Attendee Prize Sponsor Axalta Coating Systems!

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Thomas Greco Publishing Names Chasidy Rae Sisk as Managing Editor

Thomas Greco Publishing Inc. (TGP) is proud to announce that Chasidy Rae Sisk has joined its publishing team in the role of managing editor.

Sisk brings nearly 15 years of professional writing and editing experience to her new position. For the past decade, she has written almost exclusively for the automotive and collision repair industries, producing content and materials for various magazines, organizations, websites and trade associations. Sisk’s articles have been printed in multiple industry publications, including BodyShop Business, AutoInc., Fixed Ops Magazine and Autobody News.

“We are absolutely thrilled to have Chasidy coming on board,” TGP President Thomas Greco says. “She is one of only a handful of people who have the talent, experience and knowledge of writing and managing collision repair trade publications. We feel we have set a high standard over the last three decades, and we are certain Chasidy will help us maintain that.”

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continued from pg. 14

That’s why NORTHEAST 2021 also featured seven phenomenal training classes, taught by greats like Mike Anderson of Collision Advice, BASF’s John Shoemaker and Lee Rush from Sherwin-Williams. The classes may not have been as packed, but the guys who showed up – well, they came to learn something.

For most of us, 2020 was an eyeopener. It gave you time to finetune your business and pick up things you’d been too busy to get to before. When you had time to pay attention, you realized what it took and what you needed to do. That’s why you were more engaged in training; it’s why you invested in the tools and equipment you needed. NORTHEAST 2021 was wellattended by the people who were truly engaged and looking for something specific, not just somebody kicking tires. This year’s attendees were the ones who are ready to adapt to this ever-changing industry and get active.

Getting involved with AASP/ NJ keeps you informed on what’s happening out there and lets you know what’s current. If you want to know what’s going on, you have to stay engaged. Your next chance will be in March 2022 when AASP/NJ hosts the next NORTHEAST Automotive Services Show, again right in our backyard. Mark it on your calendar, and make sure you’re engaged enough in your industry to show up.

NJA

NEWS FROM GRECO PUBLISHING

continued from pg. 46

As managing editor, Sisk will assist in overseeing editorial operations for the production of the monthly print and digital magazines. She will manage the team of reporters and coordinate with the sales and marketing teams at TGP. Sisk possesses a B.A. in English from the University of Delaware. She is also an active member of the Women’s Industry Network (WIN). Sisk is “excited to continue learning about and writing for this exciting industry. I fell in love with writing about automotive and collision during my first interview in 2011, and I’m looking forward to seeing everybody in person at upcoming events. I’m honored to have the opportunity to join the TGP family.”

ARANJ Board of Directors

David Yeager - EL & M Auto (800) 624-2266 / elandmauto@aol.com

Ed Silipena - American II Autos (609) 965-0987 / esilipena@yahoo.com

Norm Vachon - Port Murray Auto (908) 689-3152 / portmurrayauto@yahoo.com

Dillon Rinkens - East Brunswick Auto (732) 254-6501 / ebautonj@comcast.net ARANJ Officers

President - Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 / aceautonj@comcast.net

1st Vice President - Daryl Carman Lentini Auto Salvage (908) 782-4440 / darryl@las-parts.coms

2nd Vice President - Mike Ronayne Tilghmans Auto Parts (609) 723-7469 / tilghmans@snip.net

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

ARANJ

The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs

Good drivers are good for business. Your business depends on your drivers and the decisions they make on the road. A good driver benefits your business by reducing the cost of a loss and boosting your public image. Effective screening, hiring, training and monitoring will help reduce your liability. Be aware that every driver sends a message to the public as they drive down the highway as a representation of your brand. Here are a few tips for hiring safer drivers:

• Create consistent standards for all drivers. • Verify past work history and safety records. • Conduct background checks; evaluate MVRs • Conduct written and road tests and verify certifications.

A good driver tells a story that boosts your public image. As always, if you have any questions, please contact me.

Mario DeFilippis, AAI Vice President (732) 686-7020 (office) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

NJA