Texas Automotive August 2020

7KH RI¿ FLDO SXEOLFDWLRQ RI WKH $XWR %RG\ $VVRFLDWLRQ RI 7H[DV

$5.95

AUGUST 2020

POSITIONING FOR THE FUTURE: ABAT LOOKS FORWARD

Y A New Approach Y The Perils of Photo Estimating Y Taking the Chance

www.grecopublishing.com

ONE BRAND. COMPL O ETE FOCUS.

PULL UP! U Repair System Glue gun

Electropuller (optional) Suction cups (numerous sizes and shapes)

More tools

Thread e pivots (num merous sizes, shapes and lengths) Repair cosmetic and structural da amage Up to 5 tons of pulling capacity No panel burn-through or welding g Suitable for both aluminum and steel panels

Slide Hammers (various weights and lengths)

(844) 810-2573 12787 TX-155, Tyler, TX 75703

Spanesi authorized distributor

www.spanesi-americas.com innovativ vec ecollisionequipment.com facebook.com/spanesiamericas

A SYSTEM

R EBO OR N w it h e v er yt hing y ou u a s k ed f or in a r e f inish s y s t em – c olor c onsis t enc y and t ools .

M AV ER IC K AP P R OV ED .

R EQ UE S T A D EMO MO , V ISI T MA AT TRIXSYSTEM.COM

3 August 2020 Texas Automotive

Start Fixing “The Right Way” Get the

Starter Kit TODAY!

A. Long Life Round Head Cutter B. Flat Head Aluminum Cutter C. Protective Cap D. Cutting Wax E. BTR/BOR Fluid

MEC 600

All Purpose Cutter

A. B.

C.

E.

Wieländer +Schill Designed for the removal of outer panels and laser welds

No heat applied to panels

D. Check out what else RAE has to offer at: https://www.facebook.com /ReliableAutomotiveEquipment/ www.raeservice.com

Reliable Automotive Equipment P (732) 495 - 7900 F (732) 495 - 7904

Contents

August 2020

on the

cover

Official publication of the Auto Body Association of Texas

POSITIONING FOR THE FUTURE:

ABAT BOARD OF DIRECTORS Vice President Eric McKenzie

14

ABAT Looks Forward

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

DEPARTMENTS

12

Treasurer David Osburn South West Collision Center dosburn@southwestautogroup.com (855) 395-2720 Executive Director Jill Tuggle jill@abat.us (817) 899-0554

ABAT BOARD MEMBERS

By Joel Gausten

6 7 8 9 10

President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082

Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

PRESIDENT’S MESSAGE By Burl Richards A New Approach ABAT MEMBERSHIP APPLICATION

EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle Take a Chance DEAN GRIFFIN MEMORIAL SKEET SHOOT FLYER EDITOR’S MESSAGE By Joel Gausten A Long Time Ago...

LOCAL NEWS ABAT Cancels Annual Trade Show, Plans Regional Events

Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412

Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

Logan Payne Payne & Sons Paint & Body logan@payneandsons.net (214) 321-4362

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391 Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert / lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com

16

ASK THE EXPERT By Robert McDorman “Has COVID-19 Led to Increased Carrier Profits at the Insureds’ Expense?”

EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com

20

INDUSTRY ADVICE: ASK MIKE By Mike Anderson How Can Shops Better Retain Techs with Paid-For Training?

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

ADVERTISERS’ INDEX 300 Advantage ....................................................19

FindPigtails.com ..................................................17

Beacon Equipment Resources ........................10

Innovative Collision Equipment........................IFC

CAR-O-LINER Southwest ..................................22

Reliable Automotive Equipment ......................4

Charles Maund Toyota........................................13

Sherwin-Williams/Matrix ....................................3

Complete Collision Equipment/Spanesi ........13

Tasco Auto Color..................................................12

Dallas Parts Distribution Center ......................OBC

USI............................................................................11

Ecotech ..................................................................IBC

Wheel Technologies............................................18 5 August 2020 Texas Automotive

www.grecopublishing.com

TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2020 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.

President’s Message

A NEW APPROACH

I

I’d like to start this month’s message by asking a done at the very beginning. This question: As a shop owner, would you rather have your would help get the vehicle top technician handle structural work or take care of owner on board from the start Burl Richards removing glue from a body side molding or piece of and leave our estimators to write ABAT President trim? In my mind, having them do the latter makes jobs based on what an informed about as much sense as a trend I’m beginning to see in consumer wants. If the customer is negotiations between shops and insurance carriers. more involved and engaged, then the insurer won’t be Like any professional facility owner, I employ so quick to dump so much work on our estimators’ expert appraisers to write professional and shoulders. This might not be the answer to all highly detailed estimates at the start of of our problems with estimates these every job. Unfortunately, this seems days, but it might be a good We are all like a waste of time and energy start. Some of you may already be in business to when the insurer does nothing doing this, and I welcome your serve consumers, but cut down that estimate later thoughts and ideas on how to and insurers are there in the process. To make matters better combat the front-end worse, our estimators are being delays and headaches many of us to cover those bogged down by constantly are dealing with these days. consumers to having to take photos for At the end of the day, the the full extent of insurers. These days, it takes an insurance carriers have realized that their policies. average of 30 to 45 minutes from the it is much more profitable to have time a customer walks in here to when shops do the administrative work than an estimate is finished. That seems like an have their paid employees do it. In the awfully long time to spend on an estimate that will meantime, many insurers are laying folks off. We have eventually have its OEM parts replaced by aftermarket to handle the additional workload, but that has parts or a six-hour job reduced sometimes by 50 significantly changed the “cost of doing business.” percent or more. The bottom line is that many of us Although this industry is constantly changing, the are being forced to pile more administrative time on fact remains that an auto body shop should never the front end just to give an insurance company an shortchange itself in what it can charge for the work it opportunity to whack our estimate down the line. does. We are all in business to serve consumers, and What’s the solution? In my mind, it might be time insurers are there to cover those consumers to the full to make salespeople – not estimators – the people on extent of their policies. That’s all there is to it.

TXA the frontline with customers. An in-shop salesperson could inform customers of their rights as soon as they walk through the door. Educating them on imitation parts, OEM procedures and certified repairs can be burl@burlscollision.com 6 August 2020 Texas Automotive

Auto Body Association of Texas Membership Application Company Name:______________________________________________________________________ Primary Contact: _____________________________________________________________________ Position: ____________________________________________________________________________ Phone Number:________________________________ Direct Line/cell: ________________________ Email: _______________________________________________________________________________ Business address: ____________________________________________________________________

Years in Business: _____________ Website: _______________________________________________ Full 2019-2020 Dues $500 ² MSO $250 per additional shop 2019-2020 Affiliate (Vendor) Dues $500 Join online at www.abat.us OR send this form to the address below Credit card number________________________________________________________________ Exp _____________________

By signing below, you agree to pay the above amount and have your credit card put on file for auto renew each year in the amount of $500 to be charged 12 months after joining ABAT. You may cancel this auto renew at any time.

Signature:__________________________________________________________Date: ____________ OR pay online at http://www.abat.us/join-abat/ or make checks payable to ABAT Credit cards are preferred but if you must send a check please submit membership dues to ABAT 1207 N. Frisco St. Henderson, TX 75652

Questions? Please contact Jill Tuggle at 817-899-0554 / jill@abat.us

7 August 2020 Texas Automotive

Executive Director’s Message

TAKE A CHANCE

U

Usually about once a month, I get a call from a shop telling me about some way that ABAT changed their business for the better. e things we teach and the networking we provide are the simplest things you can take advantage of to be more profitable and put safer cars back on the road. ey also represent some of the least expensive ways to impact your bottom line.

I love when we see new faces at a meeting, because I know they have just taken a chance on us. I know that they will feel relief knowing that we are not just another group that some shop started to get together and complain about our industry. ey look around the room and see that others are there with some of the best shops in their area; they no longer have to feel like they are on an island by themselves. I also know they will be back.

You see, it’s hard to sell someone on coming to that first meeting no matter how great the sales pitch is. ABAT has to constantly overcome the stigma of the auto body associations of the past. at is why we rely on everyone’s favorite referral method: Word of mouth! Most new faces at meetings are there because another shop or a jobber has invited them many times. Can you

imagine the change that could happen in your city if all the independent shops near you were members of ABAT? If they all stood up for what was right, stopped the bullying and started asking to be reimbursed for vital processes and procedures, then surely you wouldn’t be “the only one asking for that.”

At every meeting, ABAT guarantees Jill Tuggle that you will learn at least one thing that ABAT Executive Director you can take back to your business and add profit to your books the very next day. So, what do you have to lose?

Take a chance on us and come to a meeting. If you are already a member or regular attendee, bring someone with you. e association needs membership dollars more than ever this year, so make sure you’re paid up and help us grow. And guess what? You’ll grow, too.

TXA

jill@abat.com

CALL THE TOYOTA SERVICE GUYS! 8400 Research Boulevard • Austin, TX 78758

Direct: (512) 421-8504 Direct: (512) 458-3300

MILLION DOLLAR INVENTORY! Receive an Additional

5% OFF YOUR NEXT MECHANICAL PARTS ORDER WITH OFFER CODE

WE OFFER WHOLESALE PRICE MATCHING ON MOST PARTS!

MAUND wes_newman@charlesmaundtoyota.com

SAME DAY ADAS CALIBRATIONS 8 August 2020 Texas Automotive

The Auto Body Association of Texas Presents The

Memorial Skeet Shoot

ŽƌŬ ^ŚŽŽƟŶŐ ^ƉŽƌƚƐ ĂůůĂƐ͕ dy

ZĞŐŝƐƚƌĂƟŽŶ ŽƉĞŶƐ ϵ͗ϯϬĂŵ͕ ^ŚŽƚŐƵŶ ^ƚĂƌƚ ϭϬ͗ϯϬĂŵ EŽ ĞdžƉĞƌŝĞŶĐĞ ŶĞĐĞƐƐĂƌLJ͘ ŽŵĞ ũŽŝŶ ƚŚĞ &hE͊ Thousands of dollars in prizes to give away! ŽůĚ ĞĞƌ͕ ,ĂŶĚ

ZŽůůĞĚ ŝŐĂƌƐ ĂŶĚ >ƵŶĐŚ ƚŽ ĨŽůůŽǁ

ŶƚƌLJ ĨĞĞ ŝŶĐůƵĚĞƐ ĞLJĞ ĂŶĚ ĞĂƌ ƉƌŽƚĞĐƟŽŶ͕ ŐŽůĨ ĐĂƌƚ ĂŶĚ Ă ƐĐŽƌĞŬĞĞƉĞƌ͘ ůŝŵŝƚĞĚ ŶƵŵďĞƌ ŽĨ ƐŝŶŐůĞ ƉůĂLJĞƌ ƐƉŽƚƐ ǁŝůů ďĞ ĂǀĂŝůĂďůĞ ĨŽƌ ΨϱϬϬ͘ ^ŚŽƚŐƵŶ ƌĞŶƚĂů͕ ƚƌĂŝŶŝŶŐ ĂŶĚ ƐĂĨĞƚLJ ŽƌŝĞŶƚĂƟŽŶ ĂǀĂŝůĂďůĞ͘ ůů ŐƵŶƐ Dh^d ŵĞĞƚ ůŵ &ŽƌŬ ƌĞƋƵŝƌĞŵĞŶƚƐ Ϯϭ͟ ďĂƌƌĞů Žƌ ůŽŶŐĞƌ Ğ ͕ ŶŽ ƐĂǁĞĚ Žī Žƌ ƉŝƐƚŽů ŐƌŝƉ ŐƵŶƐ͘

^ƉĂĐĞ ŝƐ ůŝŵŝƚĞĚ͕ ĮƌƐƚ ĐŽŵĞ͕ ĮƌƐƚ ƐĞƌǀĞĚ͘ WĂLJŵĞŶƚƐ ĚƵĞ ďLJ ϭϬͬϬϵͬϮϬ dŝƚůĞ ^ƉŽŶƐŽƌ- Ψϯ͕ϱϬϬʹ ϭ ĂǀĂŝůĂďůĞ - ŽŵƉĂŶLJ ůŽŐŽ ŽŶ ƉůĂLJĞƌ ƐŚŝƌƚƐ W>h^ Ă ƚĞĂŵ ŽĨ ϰ - Įůů ƚŚĞ ƐŚŽŽƟŶŐ ƐƉŽƚƐ ǁŝƚŚ LJŽƵƌ ĐƵƐƚŽŵĞƌƐ Žƌ ǁĞ ĐĂŶ ŚĞůƉ LJŽƵ Įůů ƚŚĞ ƚĞĂŵ ǁŝƚŚ ŽƵƌ ŵĞŵďĞƌƐ ;ƉŽƚĞŶƟĂů ĐƵƐƚŽŵĞƌƐ ĨŽƌ LJŽƵͿ͘ ŽŵƉĂŶLJ ůŽŐŽ ŽŶ Ăůů ĞǀĞŶƚ ŵĂƚĞƌŝĂůƐ͕ ƐŝŐŶĂŐĞ ĂŶĚ ƚĞĂŵ ĐĂƌƚ͘

WůĂƟŶƵŵ- dĞĂŵ ^ƉŽŶƐŽƌ- ΨϮ͕ϬϬϬ - ϮϬ ĂǀĂŝůĂďůĞ - ^ƉŽŶƐŽƌ Ă ƚĞĂŵ ŽĨ ϰ - Įůů ƚŚĞ ƐŚŽŽƟŶŐ ƐƉŽƚƐ ǁŝƚŚ LJŽƵƌ ĐƵƐƚŽŵĞƌƐ Žƌ ǁĞ ĐĂŶ ŚĞůƉ LJŽƵ Įůů ƚŚĞ ƚĞĂŵ ǁŝƚŚ ŽƵƌ ŵĞŵďĞƌƐ ;ƉŽƚĞŶƟĂů ĐƵƐƚŽŵĞƌƐ ĨŽƌ LJŽƵͿ͘ ŽŵƉĂŶLJ ůŽŐŽ ŽŶ Ăůů ĞǀĞŶƚ ŵĂƚĞƌŝĂůƐ͕ ƐŝŐŶĂŐĞ ĂŶĚ ƚĞĂŵ ĐĂƌƚ͘ 'ŽůĚ- ^ƉŽŶƐŽƌ- Ψϭ͕ϬϬϬ- ϯ ĂǀĂŝůĂďůĞ - ^ƉŽŶƐŽƌ ůƵŶĐŚ ĨŽƌ Ăůů ĂƩĞŶĚĞĞƐ͘ ŽŵƉĂŶLJ >ŽŐŽ ŽŶ ƚĂďůĞƐ͕ Ăůů ĞǀĞŶƚ ŵĂƚĞƌŝĂůƐ ĂŶĚ ƐŝŐŶĂŐĞ͕ ƌĞĐŽŐŶŝƟŽŶ Ăƚ ĂǁĂƌĚƐ ůƵŶĐŚ͘

^ŝůǀĞƌ- ^ƚĂƟŽŶ ^ƉŽŶƐŽƌ- ΨϲϱϬ ; ŝŐĂƌ ďĂƌ͕ ƉŚŽƚŽ ƐƚĂƟŽŶ ͕ ƐŶĂĐŬ ĐĂƌƚ Žƌ ŐĞŶĞƌĂů ƐƚĂƟŽŶ ƐĞƚƵƉͿ ʹ ϰ ĂǀĂŝůĂďůĞ

3 Available

KƉƉŽƌƚƵŶŝƟĞƐ ŝŶĐůƵĚĞ͗ Ŷ ŽŶ-ƐŝƚĞ ƉƌŽĨĞƐƐŝŽŶĂů ƵďĂŶ ĐŝŐĂƌ ƌŽůůĞƌ͕ Ă ƐŶĂĐŬ ĐĂƌƚ ƚŽ ĚƌŝǀĞ ĂƌŽƵŶĚ ƚŚĞ ĐŽƵƌƐĞ ĂŶĚ Ă ƉŚŽƚŽ ƐƚĂƟŽŶ ;ďĂƐĞĚ ŽŶ ƐƉŽŶƐŽƌ ĨƵůĮůůŵĞŶƚͿ͘ ŽŵƉĂŶLJ ůŽŐŽ Ăƚ ƐƚĂƟŽŶ ĂƐ ǁĞůů ĂƐ Ăůů ĞǀĞŶƚ ŵĂƚĞƌŝĂůƐ ĂŶĚ ƐŝŐŶĂŐĞ͘

ƌŽŶnjĞ- ZĂŋĞ ^ƉŽŶƐŽƌ- ΨϮϱϬ - ^ƉŽŶƐŽƌ ƌĂŋĞ ƉƌŝnjĞƐ - ŽŵƉĂŶLJ ůŽŐŽ ŽŶ ƌĂŋĞ ƉƌŝnjĞ;ƐͿ͘

ŽŵƉĂŶLJ EĂŵĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ĚĚƌĞƐƐ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ŽŶƚĂĐƚ EĂŵĞ ĂŶĚ ƉŚŽŶĞ ŶƵŵďĞƌ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ WůĂLJĞƌ ϭ EĂŵĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^Śŝƌƚ ƐŝnjĞ ͺͺͺͺͺͺ WůĂLJĞƌ Ϯ ŶĂŵĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^Śŝƌƚ ƐŝnjĞ ͺͺͺͺͺ WůĂLJĞƌ ϯ EĂŵĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^Śŝƌƚ ƐŝnjĞ ͺͺͺͺͺͺ WůĂLJĞƌ ϰ ŶĂŵĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^Śŝƌƚ ƐŝnjĞ ͺͺͺͺͺ ƌĞĚŝƚ ĐĂƌĚ ƚLJƉĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ĂƌĚ EƵŵďĞƌ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺ ͺͺͺͺͺͺͺͺ yW͗ ͺͺͺͺͺͺͺͺͺͺ ss͗ ͺͺͺͺͺͺͺͺͺͺͺ ŵŽƵŶƚ ƚŽ ĐŚĂƌŐĞ͗ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ŝŐŶĂƚƵƌĞ͗ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ

)RU PRUH LQIRUPDWLRQ HPDLO -LOO 7XJJOH MLOO#DEDW XV

9 August 2020 Texas Automotive

Editor’s Message

A LONG TIME AGO...

T

is month marks my 20th year covering the collision repair industry. at means I have a heck of a lot of Editor’s Messages and articles under my belt. When I recently went through my archives while packing up to move, I found about 800 automotive-related magazines that featured my work – and that didn’t represent everything I have contributed to over the past two decades. In a typical year, I spend around 100 days on the road covering regional and national industry events. Without a doubt, being an automotive journalist and editor is the most active part of my life. Well, at least that was the case until 2020 hit.

It’s been close to eight months since I’ve traveled to an industry event, and I spend a lot of time these days sitting in Zoom meetings. (I’m sure you’ve also been doing the same lately.) While the number of articles I’ve written so far this year compares to a typical eight-month run for me, almost all of them have involved COVID-19 in some way. is is a very peculiar way for me to celebrate such a big anniversary in this business.

Despite the strange place we’re all in these days, I still look

at the industry today with the same Joel Gausten fondness I did way back in 2000.

Editor During the first few months of my career, I reached out to as many shops as I could to learn about what it means to work in the collision repair field. What I learned was that the folks who comprise this profession were largely dedicated, resilient and adaptable to change. Twenty years later, this continues to be an impressive reality. Look at how quickly the automotive community in Texas and beyond rose to the challenge of COVID-19 and made adjustments to keep things going. Sure, it hasn’t been the smoothest ride, but shops, vendors and other industry stakeholders are still in the game. at’s no small feat, and everyone reading this message should be proud of themselves.

My most heartfelt thanks to ABAT and the Texas Automotive readers for making the last 23 months producing this magazine one of the best highlights of my 20-year journey!

TXA

joel@grecopublishing.com

10 August 2020 Texas Automotive

11 August 2020 Texas Automotive

LOCAL NEWS

ABAT Cancels Annual Trade Show, Plans REGIONAL Events e Auto Body Association of Texas has made the difficult decision to cancel the 2020 Texas Auto Body Trade Show scheduled for September 18-19 in Irving.

ABAT had been closely monitoring the COVID-19 situation and felt this was the best thing for the association and its members, speakers and exhibitors. ABAT is excited to host some smaller regional events, including a few educational meetings, in the fall. e association is also already making plans for next year’s show on September 17-18, 2021.

"We waited it out until the bitter end, holding onto hope that we could make it work," says ABAT President Burl Richards of the decision to forego this year's show. "With all factors considered, this is what is best for everyone."

ABAT surveyed both attendees and exhibitors to gauge their comfort level with an in-person event. “e response was split down the middle,” explains ABAT Executive Director Jill Tuggle. “Many Texans were ready to venture out with proper precautions taken, but with vendors under tight budgets and corporate travel restrictions, a successful show is not possible. We are looking forward to making 2021 our best year yet.”

In other news, ABAT is planning both a Golf Outing and the Dean Griffin Memorial Skeet Shoot for the near future. For more information, email Jill Tuggle at jill@abat.us.

TXA

12 August 2020 Texas Automotive

13 August 2020 Texas Automotive

Cover Story

Positioning for the Future: ABAT Looks Forward

14 August 2020 Texas Automotive

By Joel Gausten

We are living in a difficult present, but that hasn’t stopped ABAT from working to build a better future for its members.

On July 22, the association welcomed With the future John Niechwiadowicz of QLC, Inc. for “Present and of COVID-19 Future: Positioned for Success,” his fourth webinar for ABAT since COVID-19 touched down in the Lone uncertain, many Star State. Similar to his previous, three-part repair facilities “Adapting to COVID-19” series (sponsored by are being forced BASF), his latest presentation provided much-needed perspectives and information on how Texas industry to drastically members can better weather the storm in front of transform how them and develop an action plan for what’s to come.

In September 2019, the United States was in the they conduct midst of what Niechwiadowicz called “the longest business. economic recovery in our history.” Seven months later, that being made on positive trend changed to the point where shops throughout each job. the country began experiencing severe drops in revenue and (in “[Even] good shops some cases) temporary closures. With the future of COVID-19 like yours are not looking at the uncertain, many repair facilities are being forced to drastically transform financials ever.” how they conduct business. As explored throughout Niechwiadowicz’s To offer guidance in this critical area, he led discussion, true evolution and survival in these unprecedented times will attendees through a deep dive into the come as a result of a shop’s ability to maintain a “healthy, strong cash fundamentals of determining their gross profit. position,” keep both the business and its employees economically sound Additionally, he offered insights into how facility and look beyond work volume as the biggest indicator of success. owners can better identify a realistic break-even Before diving into these points, Niechwiadowicz presented an sales amount. overview of how COVID-19 is reshaping the industry – including its Richards encouraged ABAT members to effect on one of the automotive community’s longest-running debates. consistently focus on their numbers over volume as While the appropriate business response to COVID-19 is still very much a way to better shield themselves against a second a moving target, the webinar made it clear that the pandemic has already lockdown or another unexpected crisis. had a potentially long-lasting impact on the Direct Repair Program When you’re basing everything on volume and (DRP) side of the fence. For example, Niechwiadowicz noted that three not those margins [and] profits, you’re going to get Caliber Collision locations recently closed in New Jersey. Sharing some of hit quicker. It’s going to affect you sooner.” his recent experiences as a non-DRP shop owner, ABAT President Burl Similar to how some people make a point of Richards noted that he actually experienced a backlog in work during the putting money aside for retirement while others pandemic due to waiting for approvals from insurers. is enabled his live paycheck to paycheck, Niechwiadowicz warned shop to stay busy during lean times. In his mind, independently building that many shops put themselves in a position of customer relationships will be a critical factor in a shop’s ability to remain being unprepared for the future by neglecting to stable moving forward. track and address trends in their sales and profits.

“It’s not just about having a commercial on the TV or the radio; it’s “We think that nothing could prepare us, but about actually getting out into the community and doing things for your there’s only so much truth to that… Let’s ‘be community…If you’re expecting some other entity or source to provide prepared to be unprepared’ so that we’re as least you that work when things go bad, I think this is proof that it’s not going surprised as possible.” to happen.”

Of course, “surprise” is sure to remain a part of With fewer cars on the road these days, it is natural for shops to look the Texas auto body field until COVID-19 is at getting more through the door to ensure continued growth. However, contained. While his presentation gave all Niechwiadowicz cautioned that volume is not the most critical factor in attendees plenty of useful information to consider maintaining a successful shop. Even if a facility is full of cars, that business could be in dire financial straits if it doesn’t focus on the profit Continued on page 18 15 August 2020 Texas Automotive

Ask the Expert

“Has COVID-19 Led to Increased Carrier Profits at the Insureds’ Expense?”

Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in over 25 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35-plus years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-ofthe-art, comprehensive, accurate, unbiased and up-to-date data and information that all parties can rely upon as both factual and objective.

Robert can be reached at (800) 736-6816, (817) 756-5482 or AskTheExpert@autoclaimspecialis tts.com.

Dear Mr. McDorman: With the COVID-19 pandemic and social distancing policies, we are seeing many carriers refusing to send an appraiser to inspect the vehicle, instead relying on us to supply photos and estimates of the damage. We have to spend a considerable amount of time sending in additional information, photos and supplements only to be sent back an additional supplement that covers only a fraction of the required operations and parts needed to complete a safe and proper repair.

These additional steps are not only an administrative nightmare, but it is also next to impossible to manage cycle times and our clients’ rental expenses. I see this as a reduction in the carriers’ expense and an avenue to slow down the claim process and increase carrier profits at the expense of their insureds. Have you experienced this situation with the claims you handle for the insured? If so, how have you resolved the loss dispute?

Thank you for your question, which is a particularly good one and is a serious problem in Texas. With the shelter-in-place orders and the slowdown in claims, one would have thought the claims-handling process would have improved. This is not the case, as we have instead seen the process worsen and our clients being under-indemnified and harmed at even

greater numbers than before the pandemic.

Over the last several months, many carriers may have issued premium cuts in response to reduced driving, but they seem to be reducing their expenses even more by inspecting fewer vehicles, passing administrative expenses on to the collision industry and issuing repair estimates that do not support the loss. Of course, this shouldn’t surprise anyone who is a regular reader of Texas Automotive.

We deal with this aggravating issue daily in our office from clients across the United States. However, we have noticed in the last 90 days, carriers in Texas have taken the refusal to inspect the vehicle due to COVID-19 to a new level. We have noted many instances where carriers are passing the blame for a slowdown in the claim process on to the collision facility. In these instances, the carriers have been issuing estimates from photos averaging only 20 percent of the required cost to safely return the vehicle to its pre-loss condition.

As an example, we were recently contacted by an insured with a 2018 GMC Sierra 2500. The date of loss was April 15 of this year, and the carrier’s initial estimate of record dated April 23 itemized a repair estimate of $8,873.19. The insured’s certified repair facility had subsequently turned in all photos and documents and a repair plan for $31,547.75. Well over 75 days since the date of loss and nine supplements later, a determination to repair or replace has still not been reached to resolve the loss

16 August 2020 Texas Automotive

By Robert L. McDorman

dispute. Our subsidiary, Vehicle Value Experts, has reviewed all photos and documents and concurs with the collision facility’s repair plan as the actual loss. We have recommended to the insured to invoke their policy right of appraisal in contest of the loss. The insured has retained us to enforce their policy right of appraisal and see to it they are made whole.

In all situations like this case, the insured invariably runs out of rental coverage and is forced to cover this continuing expense – a loss from a covered accident – out of pocket. Most policies in Texas limit the rental coverage for 30 days. The slowdown of the claim process from the COVID-19 pandemic has affected this loss substantially.

Fortunately, the right of appraisal in most policies (except for State Farm) allows the insurer or the insured to invoke their right of an appraisal when a dispute arises over the

covered repair The undercosts. So, when indemnification in the carrier issues an improper or total loss and repair unsafe repair procedure claims in plan, you and Texas is rampant. your client do not have to just accept it. The insured can invoke the policy right of appraisal and force the decision out of the hands of the unsympathetic carrier and into the hands of independent professional appraisers who understand the true costs of safe OEM repair procedures.

The under-indemnification in total loss and repair

17 August 2020 Texas Automotive

Continued on page 19

Cover Story Continued from page 15

as they move ahead, Niechwiadowicz acknowledged that it will be a long time before the US economy returns to the positive place it was 11 months ago.

“I think we can all agree that we’re not done yet. We’re still going to have to deal with this from a business perspective for quite some time.” e meeting began with a presentation by the Society of Collision Repair Specialists (SCRS) – of which ABAT is an affiliate member – on its newly launched Blueprint Optimization Tool (BOT), a game-changing new technology first introduced in demonstration form at the 2019 SEMA Show. Powered by NuGen IT in partnership with SCRS, the repairer-focused BOT is a Microsoft Windows software application that automates the print version of SCRS’ Guide to Complete Repair Planning. e BOT application operates alongside of the respective P-Page logic estimating application and utilizes Collision Industry Electronic Commerce Association (CIECA) estimate data to analyze the original repair line information. It then generates an electronic information estimate report that identifies additional repair operations that may have been overlooked. Designed to increase efficiency by establishing consistency, the tool offers an organized means of identifying and adding missed

opportunities by dynamically cross-referencing written estimates against the Guide to Complete Repair Planning.

During the presentation to ABAT members, NuGen IT Business Development Leader Pete Tagliapietra noted that BOT end-users can see a return on their investment within the first three estimates.

Not surprisingly, the BOT has already received accolades in and out of the auto body field. e technology was recognized during the 2019 SEMA Show with both a SEMA New Product Award and SEMA Global Media Award. More information on the BOT is available at scrs.com/BOT. Speaking with Texas Automotive following the webinar, Richards was pleased that the association was able to provide such valuable content in an online format during a time when in-person communications was not possible. “is was one of our best presentations yet. e content was incredible, and it will have a huge financial impact on many shops. We hope that members will continue to take advantage of similar ABAT presentations as they become available.”

For information on upcoming ABAT seminars and special events, visit abat.us or contact Executive Director Jill Tuggle at (817) 899-0554 or jill@abat.us.

TXA

We Are Committed to

QUALITY REPAIRS

that Align with OEM Procedures Lifetime Warranty

Fully Insured Repairs

We stand behind our work 100% All of our repair services are backed by a five million dollar insurance policy.

Customer Satisfaction

You can be sure that if your wheels are repaired by Wheel Technologies, you can deliver it to your customer with confidence!

Independent Lab Tests

Download our app to schedule your next repair!

Available on the Apple App store, Google Play and Android stores!

We take wheel repair seriously and have had our repaired wheels randomly tested by an independent testing lab to ensure quality repairs.

800-210-2371

18 August 2020 Texas Automotive

Ask the Expert Continued from page 17

procedure claims in Texas is rampant. We have been increasing the total loss settlement for eight out of 10 contacts who we end up retaining as clients an average of 28 percent. We have also reduced clients’ out-of-pocket expenses by an average of 35 percent on repair procedure disputes, including the example provided in this answer.

These under-indemnification percentages are staggering and harmful to Texas citizens.

The spirit of the Appraisal Clause is to resolve loss disputes fairly and in a timely and cost-effective manner.

The invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to undervalue the loss settlement and under-indemnify the insured. Through the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased, experienced and independent third-party appraisers as opposed to more costly and time-consuming methods, such as mediation, arbitration and litigation.

LET US TURN THEM AROUND!

In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claim-handling policies and non-standardized GAP Addendums, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement reviewed by an expert before accepting. There is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give its professional opinion as to the fairness of the offer.

Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies in our library. Always keep in mind that a safe repair is a quality repair, and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise.

Sincerely, Robert L. McDorman TXA

The 300 Advantage™ Providing real-time intelligence before, during, and after a hail storm

Our network of local partners allows us to scale to any sized hail event.

Our technology provides real-time visibility and performance measurements to keep business moving.

Our people and repair management systems ensure the least amount of business disruption as possible.

Our business model protects our clients’ core business within auto dealerships, body shops, fleet companies, and insurers alike.

Contact Texas Automotive Sales Director Alicia Figurelli

(973) 667-6922

But don’t just take our word for it...

CALL 636-734-5470 EMAIL ryan@the300advantage.com

ALICIA@GRECOPUBLISHING.COM

19 August 2020 Texas Automotive

To learn more!

Industry Advice: ASK MIKE Do you have a question for Mike? Contact Texas Automotive Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

How Can Shops Better Retain Techs with Paid-For Training?

This month, we “ASK MIKE” for his thoughts on how shops can better ensure their technicians stay with them after these employees receive costly training. We at Texas Automotive hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

Texas Automotive: Shops across the country pay their technicians to attend training ranging from I-CAR to courses for some of the most advanced OEM certification programs out there. Unfortunately, we’ve been hearing a lot of complaints lately from facilities that lose technicians after this training has been paid on those technicians’ behalf. What are some out-of-the-box ways that these shops can protect their investment while incentivizing technicians to stay on board?

Mike Anderson: I can speak to this firsthand. When my dad and I were partners in business together, we were an Audi-certified shop. Back then, you had to send your people to Germany for training. We spent tens of thousands of dollars per tech for a two-week trip. When one technician we sent there got back, he gave his notice within a week and left. People often ask, ‘What happens if I train someone and they leave?’ The answer to that is, ‘What happens if you don’t train them and they stay?’ We

don’t have a choice; we have to train our technicians. But if they leave, we need to ask ourselves why. That is what we need to focus on. Did they think they weren’t compensated properly? Was it because they were asked to do things they didn’t agree with? Did they have a conflict with another employee? With that said, some employees may not have valid reasons for leaving. Sometimes, an employee will come back from training and try to hold the shop hostage to get a pay increase.

At our shops, we had an agreement that said we’d pay for a technician’s training, but they were responsible for reimbursing us for these training costs and any legal fees we might incur if they left within a certain time period.

We also stated that technicians had to undergo a certain amount of continuing education per year. It’s important for anyone reading this to consult with an attorney to make sure something like that is legal in their state. Also, some shops tell their technicians, ‘If you’re trained, you make this much money.’

Some technicians have told me they don’t like going to training because they’re not paid what they consider a fair wage while they’re away. They actually lose money. In those cases, the shop may not have a very clear training program. You need to set parameters and say to that technician, ‘I’ll pay you to go. Here’s how it is going to work.’

20 August 2020 Texas Automotive

TXA: I’ve been hearing from shop owners who are actually taking OEM certification training themselves in case they end up losing someone.

MA: Some OEMs require at least two trained people at the shop. If you’re an owner who is a former technician, it makes sense for you to go to training. I think the need for training, and the related costs, will increase. For shops, there is no magic wand to make people stay. Again, I think people need to ask why their people leave. Shops should consider having a third party conduct an exit interview to see why someone left. At the end of the day, this might be the best way to ensure that a valued technician doesn’t leave in the future. Instead of complaining that someone quit, you should see it as an opportunity to learn new ways to retain the people you still have.

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com). TXA

21 August 2020 Texas Automotive

22 August 2020 Texas Automotive

23 August 2020 Texas Automotive

AUTHEENTIC MOPAR A COLLISION PAR ARTS — ORIGINAL PAR A TS FOR EVVERY CHRYSLEER, ER DODGE, JEEEP, RAM OR FIIAAT VEHICLE ®

®

®

THE BEST PPAR A T IS EVERRYY PPAR AR ART.T. There’s only onne choice for Collision Repair parts fo or FCA US LLC vehicles - Authentic Mopar M r® Parts. And here’s the best parrt, they are guaranteed to fit right the firstt time, function perfectly and restoree the vehicle to its original condition. The top five fiv high volume crash partss: Glass - Windshield eld glass pr provides nearly one third of the roo of strength on the average car. Passsenger air bags rely on windshield integrity for f proper deployment to keep your customers safe.

Fascias - Fascias are more than cosmetic parts. With more collision avoidance sensors now mounted to fascias or aiming through them, they need to fit precisely for the systems to work accurately. A proper fit ensures your customers’ fascias do not warp or bind with body panels, causing them to rust or delaminate.

Sheet Metal - Parts such as hoods and quarter panels can be integral to chassis structure and safety designs. Issues with corrosion, fit and appearance can eat up extra labor hours to finish the job and cause callbacks due to customer complaints — avoid that stress with Moparr® sheet metal.

Lighting g - Alignment, NVH (noise, vibration and harshness) resistance and proper fit all affffect saf safety, perfo ormance and customer satisffaction. action. Poor P seals and leaky lamp assemblies mblies ar are prone to condensation, corrosionn and diminished output output.

Lens composites that yellow or fog fog can dr dramatically reduce light output. Protect your customers from these affects by choosing Mopar.

Mirrors - Toda Today’s mirrors are increasingly sophisticated. Aside from convenience features, reflective surfaaces also affect fect saf safety and performance. Crash avoidance and lane departure systems are housed in the mirror assemblies and are prone to failure due to inferior ferior aftermarket parts. Authentic Moparr® Parts are built to fit perfectly and function properly every time.

The Mopar difference: • FCA US LLC engineered

• O.E. crash parts fit right the first time

• Manufactured to proprietary specs and tolerances

•T Tes ested to be better – we can prove it

• Part of a system that values safety and performance technologies

DALLAS BIGGEST — DALLAS BEST

3310 W Kingsley Rd #100 Mon.–Fri. 7:00 a.m.–7:00 p.m.

Sat. 7:00 a.m.–5:00 p.m.

Garland, TX 75041 www.dallaspdc.com

Order Hot Line: (866) 8DD-PA PART or (214) 319-1265 ©2020 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC. FIA AT T is a registered r trademark of FCA Group Marketing S.p.A., used under license by FCA US LLC.