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The oďŹƒcial publication of the Auto Body Association of Texas and the Houston Auto Body Association
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the austin agenda: aBat and haBa Push for Legislative Change
how Can shops Better attract new technicians? Mike Anderson Tells You How!
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Contents
January 2019
on the
cover
18
the austin agenda:
ABAT BOARD OF DIRECTORS
Vice President Brandon Dodd Lloyd's Body Shop brandon@lloydsbodyshop.com (903) 734-5175
ABAT and HABA Push for Legislative Change
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
By Joel Gausten
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
DEPARTMENTS
6 8 10 12 15 21
Official publication of the Auto Body Association of Texas and the Houston Auto Body Association
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
Dean Griffin Moritz Dealerships dean.griffin@moritzmail.com (817) 696-2000
pRESIDENT’S MESSAGE By Burl Richards Starting the Year in High Gear EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle Real Resolutions
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160
Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
EDITOR’S MESSAGE By Joel Gausten Don’t Get Mad – Get Active NATIONAl NEWS Ford Launches New Certification Program, Releases Scanning Position Statements ASK THE EXpERT By Robert L. McDorman An Insured’s Remedy for Indemnity Issues INDUSTRY ADVICE: ASK MIKE By Mike Anderson How Can Shops Better Attract New Technicians?
HABA BOARD OF DIRECTORS
President John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Vice President Ronnie Brush Westside Lexus Collision Center rbrush@westsidelexus.com (281) 584-2285 Chairman of the Board Greg Luther Helfman Collision Center gluther@helfman.com (713) 533-6226
PUBLISHER Thomas Greco / thomas@grecopublishing.com
ASSOCIATION NEWS 24 ABAT MEMBER pROFIlE
SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
26 HABA MEETING RECAp
McDaniel’s Quality Body Works
25 ABAT MEMBER ApplICATION
27 HABA MEMBER ApplICATION
ADVERTISING SALES: Jill Tuggle / jill@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com
ADVERTISERS’ INDEX 300 Advantage ......................................................................29 AAMStraining.com ................................................................20 Auto Claim Specialists ..........................................................3 Beacon Equipment Resources ..........................................20 Capital Paint & Refinish ........................................................IBC CAR-O-LINER Southwest ....................................................IFC Chevyland................................................................................28 Classic Chevrolet Sugar Land ............................................10 Classic Chevrolet Grapevine ..............................................29 Dallas Dodge ..........................................................................OBC Ecotech Systems, LLC ..........................................................28
OFFICE MANAGER Donna Greco / donna@grecopublishing.com
FinishMaster ............................................................................7 Glick Automotive Enterprises ............................................13 Innovative Collision Equipment..........................................14 J&J Paint Supply ....................................................................11 Phantom Equipment & Hydraulic Repair ........................9 ProLine Tool & Supply ..........................................................7 Reliable Automotive Equipment ........................................17 Scott Portfolio ........................................................................23 Sherwin-Williams ....................................................................5 Spanesi ....................................................................................14 Tasco Auto Color....................................................................29
4 January 2019 Texas Automotive
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
www.grecopublishing.com TEXAS AUTOMOTIVE is published monthly and is sent to ABAT and HABA 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 © 2019 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.
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President’s Message
STARTING THE YEAR IN HIGH GEAR these are very busy and inspiring times for our industry here in texas.
I
In addition to the legislative activities that are detailed in this month’s cover story, I’m pleased to share that I recently had a very productive conference call with representatives from the Automotive Service Association (ASA) regarding another new bill that could have a meaningful impact on how we do business on behalf of our customers. Without giving away too much about the bill at this stage of the game, I will say that this legislation is being designed to keep OEM repairs at the forefront of the industry like never before. If passed, it will be a huge win for everyone who is struggling to get paid for performing the correct procedures as defined by the automobile manufacturers. Other groups – including the Texas Auto Dealers Association (TADA) – have expressed an interest in coming on board with this bill as well. Of course, ABAT
and HABA are committed to providing as much of our collective resources as possible to see this through. I look forward to sharing more details on this new legislative venture as it moves along. ABAT and HABA are working hard behind the scenes to create a stronger industry for our shops and the motoring public we serve. I have no doubt that we will be calling on our members to get involved in the legislative process moving forward. I truly believe we are on the verge of tremendous positive change, but this can only be accomplished if you take an active role with us. We need the greatest strength in numbers we can possibly muster, so please keep an eye on Texas Automotive in the coming months to learn how you can get involved in our efforts. We are here for you, but also need you to be here for us.
6 January 2019 Texas Automotive
Burl Richards ABAT President As always, the ABAT and HABA Boards are available to help you in any way we can. Please don’t hesitate to reach out to us for assistance in your business lives – and please don’t hesitate to stand with us when we request your presence in the Legislature. is is the time to have our voices truly heard and make sure every customer who counts on us makes it home safely thanks to proper repairs. We all have too much at stake to allow things to continue the way they are.
TXA burl@burlscollision.com
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executive director’s Message
REAL RESOLUTIONS hello, 2019!
D
Do you ever find yourself pleading with time? Slow down…Speed up…It CAN’T be 5pm yet…WHEN will this day end? at’s how the New Year always feels to me. roughout 2018, we made plans for everything the association wants to accomplish, and the deadlines seemed so far into the horizon that I could hardly recognize their shapes. en, the holidays rolled around and time seemed to jump forward as if November and December never even happened. Cold, dreary January hits like dropping a hammer on your toe. en, the resolutions. I resolve to not make a resolution, because I don’t like to kid myself. So, I usually just go with a “I’m going to try to be a better person this year than I was last year” and focus on a few broad, gray areas –
so broad and gray that I don’t even remember what they are by May. But that’s all different now thanks to ABAT. In addition to my work with ABAT, I am a business owner. I have done the same thing day in and day out for several years (which is just fine – like a trusty old clock). e old clock will always be perched on the wall serving its one purpose – telling time so that we may manage our lives and ultimately provide for our families. We need it, we like it, we don’t want a new clock. (Well, maybe an Apple Watch on our wrist to “jazz up” our day a bit.) ABAT has brought me out of the monotony of the same day-to-day operation (which I loved) that was my career for the last five years. ABAT is on the move, just like the Apple Watch with its new apps and features
Jill tuggle ABAT Executive Director automatically downloading while you sleep waiting for you to check them out. While you are working in your shop, we are downloading behind the scenes and exploring new ways to make your businesses better. is is the year to add something shiny to your wrist. Something to make you set a business resolution that you will actually keep and remember late into the year. How? We will do the work for you; all you have to do is show up. Make 2019 the year you will make a change in your shop. e collision industry is becoming an increasingly hard business to be in. Consolidators are buying businesses by the hour, and it’s easy work because so many shops are struggling to stay ahead of the curve. I personally know of six shops just in my city that either sold or closed their doors in the last two months of 2018. I can’t imagine the numbers for the entire year – or in the entire state of Texas. is year, most shops will be gearing up for future success, gearing up to sell or strapping in to hang on and see what happens. If you’re strapping in to hang on, I fear that will be a short ride. If you’re gearing up for success, then consider making ABAT membership a part of your plan. Attend a meeting in your area and see what we have to offer you. All you have to do is show up.
TXA 8 January 2019 Texas Automotive
jill@abat.com
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9 January 2019 Texas Automotive
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editor’s Message DON’t get mad – Get Active Before i dive in with this month’s message, i’d like to wish you all a very happy and healthy 2019! i’m excited to work with aBat and haBa in the months ahead to make Texas Automotive the best publication it can be for our readers.
A
As you’ll read in this month’s issue, both associations are currently gearing up to make a major impact in the legislative arena. e collision repair industry is facing a time of tremendous change in technology and repair practices, and it is critical that facility owners and technicians perform repairs to the OEMs’ specifications. Additionally, it is important that customers retain their rights through every step of the process. ese are some of the areas that ABAT and HABA will address with legislators in the months to come.
While both groups have huge goals for 2019, nothing will be accomplished in the Legislature or anywhere else in the state without the ongoing support of the associations’ membership. Now is the time for every member to step up and take action when called to do so. Now is the time to truly stand united in making this industry better. Now is the time to devote any time you have to helping ABAT and HABA in their efforts. Be on the lookout for ways you can make a true difference in what they are working hard to do on behalf of the industry.
Joel gausten Editor
In the meantime, if there’s any way that Texas Automotive can help you, we’re always just a phone call or email away. If you have news on your business, know of an interesting story or simply need to vent about something on your mind, please contact us. Let’s work together to make this year count.
TXA
joel@grecopublishing.com
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national news
Ford Launches New Certification Program, Releases Scanning Position Statements In early December, Ford announced the creation of a new, self-managed collision repair certification program. According to an official announcement, the Ford Certified Collision Network (FCCN) will support the company’s “customer-first philosophy of providing our owners with quality, safe collision repairs utilizing Ford repair procedures and original equipment parts.” e new initiative will replace the previous Ford National Body Shop Network (NBSN) this month. “Ford is dedicated to delivering
collision repair solutions that meet vehicle complexity needs, which have evolved since the original network was launched, and ensures our owners have access to a network of shops that demonstrate commitment to providing quality repairs to Ford and Lincoln vehicles,” stated Ford in a prepared statement. “Our customers have told us that they value a referral for a certified collision repair shop that comes from the vehicle manufacturer over all other sources.” “We are committed to delivering quality and safe collision repairs,” added
Jennifer Boyer, Ford global collision business and strategy manager. “e evolution of our collision repair certification program demonstrates this commitment and represents our desire to manage the program internally and include new benefits to certified repairers.” Ford says that the network will offer certification, access to technical repair procedures and detailed shop and inspection requirements. New program features will include performance metrics, proper repair verification and access to a technical hotline. Improved certification
PRE- AND POST-DIAGNOSTIC SCANNING DURING A COLLISION REPAIR Ford Motor Company vehicles contain many state-of-the art features that provide occupant safety and enhance the driving experience. During collision repairs, it is critical the proper function of these systems and features be restored back to pre-accident condition and performance. Ford defines a collision as damage that exceeds minor outer body panel cosmetic distortion. All Ford Motor Company vehicles from and including model year 2010 forward involved in a collision require a pre-repair diagnostic scan during the estimation phase of a collision repair to properly identify all required repairs. During the repair process, certain modules and other system components may require calibration or initialization to properly complete the repair. Additionally, the vehicle must have a post-repair diagnostic scan completed after the vehicle has been repaired to verify that new faults have not been introduced in the course of the repair and to verify that the vehicle has been fully repaired. The following points show why a diagnostic scan is crucial to the proper repair of the vehicle: 1. Preliminary diagnostic scans provide a baseline to the condition of the systems on the vehicle and what concerns may need to be addressed during the vehicle repair plan development. 2. Not every malfunction will illuminate a malfunction warning light (MIL) or message center warning.
3. A system may require a certain number of drive or function cycles in order to set a warning light or manifest a concern. 4. Low battery voltage may allow for numerous Diagnostic Trouble Codes (DTCs) to set. It is important to utilize Ford repair procedures for all collision repairs to ensure quality results. Ford also recommends the use of the Integrated Diagnostic System (IDS) or Ford Diagnosis and Repair System (FDRS) to perform all vehicle diagnostic testing, module programing and system calibrations during collision repairs. Ford dealer-owned body shops can access service information, training and diagnostic scan tool support through the Professional Technician Society at fordtechservice.dealerconnection.com, and independent collision repairers can find information at motorcraftservice.com. Ford Motor Company vehicles are designed and built to provide optimum fit, function, safety and structural integrity. For this reason, Ford Motor Company does not approve the use of aftermarket, recycled, salvaged or reconditioned parts. The quality, performance and safety of these parts cannot be verified and may result in substandard repairs, which can inhibit proper vehicle function and cause erroneous DTCs. Only by using Ford original equipment collision parts can you be assured of the part’s fit, finish, quality and safety.
12 JANUARY 2019 Texas Automotive
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LET US TURN THEM AROUND!
options include specialization in advanced driver assistance systems and electric vehicles. “We are eager to build this new network and provide customers with improved access to certified collision repairers. e Ford Certified Collision Network is an evolution [that] prepares us for the future of the collision and claims industry,” said Boyer. Ford will begin accepting applications for certification this month, anticipating the network will grow by the end of 2019.
Contact Texas Automotive Sales Representative Jill Tuggle
New Position Statements Ford’s certification program announcement coincided with the release of new Ford and Lincoln position statements on pre- and post-repair scanning. e Ford position statement is reprinted on the facing page (with the Lincoln version available online at oem1stop.com).
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ask the expert
By Robert L. Mcdorman
An Insured’s Remedy for Indemnity Issues Dear Mr. McDorman: I own a collision facility in Houston. I read your October 2018 article, “Fighting Back against Short-Pays.” Thank you. In the editorial, you wrote, “If this can be done [Assignment of Proceeds method for payment], then what you are dealing with is an indemnity issue that could have possibly been addressed in the OEM blueprint repair plan.” Often, we have laid out, documented and supported our OEM blueprint repair plan just as you described, only to find out that our thorough outline fell on deaf ears. We were unable to convince the insurance carrier appraiser of the safe and proper method to repair the vehicle. My question is this: When the required repair procedures we have documented and supported in our OEM blueprint repair plan are covered under the policy, and nonpayment of such is an indemnity issue, what if the insured has been required to pay the difference between the carrier’s collision estimate and our plan? Is there a remedy in the policy for the insured to contest the wrongful decision of the insurance carrier appraiser that left them under-indemnified? is is a great question, and the answer is yes. e remedy for relief would be under the appraisal procedure section(s) of the policy. e policy language for appraisal procedures varies slightly from policy to policy. It is always best to refer to the “Appraisal Condition” of the policy and to the “Requirements in the Event of Loss” section as it relates to the specific covered loss. e “Appraisal Clause,” oftentimes found within an insurance policy contract, is straightforward and binding. (Both parties are bound by the final award.) Lawyers are not required,
and the length of the process is governed by the complexity of the loss and/or policy terms and conditions. e result of the “Appraisal Clause” is somewhat less formal than arbitration or mediation, and it is far less costly and time-consuming than litigation. Most insurance policies except for State Farm have an Appraisal Clause that states, “If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. e two appraisers will select an umpire. e appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to an umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser; and 2. Bear the expenses of the appraisal and umpire equally.” Under the Appraisal Clause language listed above, the insured can seek remedy for any covered loss under the policy. Invoking of the Appraisal Clause removes the inexperienced insurance carrier appraiser’s ability to mismanage the claim and puts it in the hands of experienced independent third-party appraisers. e decision between the unbiased independent third-party appraisers is binding on the parties. State Farm, under its Car Policy Booklet Texas Policy Form 9843A, limits the traditional insurance policy Appraisal Clause. It states, “e appraisers shall only determine the actual cash value of the covered vehicle. Appraisers shall have no authority to decide any other questions of fact, decide any questions of law, or conduct appraisal on a classwide or class-representative basis.” Under the State Farm Appraisal Clause language for the 9843A policy listed above, the insured would not be able to invoke the Appraisal Clause as a remedy for relief for payment for the loss difference between the carrier’s collision estimate and the OEM Blueprint Repair Plan. e policy also states, “You
15 January 2019 Texas Automotive
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 11 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+ 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-of-the-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) 7565482 or asktheexpert@ autoclaimspecialists.com.
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ask the expert
Real Protection In today’s complex motor vehicle collision repairs, the appraisal process is a vital tool for the insurer and the insured. As more and more insurance carriers push to streamline motor vehicle collision claims management through photo estimating and desk review procedures, the greater the need becomes for the appraisal process.
agree with us that the repair estimate may include new, used, recycled and reconditioned parts. Any of these parts may be either original equipment manufacturer parts or non-original equipment manufacturer parts.” In today’s complex motor vehicle collision repairs, the appraisal process is a vital tool for the insurer and the insured. As more and more insurance carriers push to streamline motor vehicle collision claims management through photo estimating and desk review procedures, the greater the need becomes for the appraisal process. Any restrictions or limitations to such appraisal processes opens the door for indemnification issues, unsafe repairs and fosters bad behavior. e insured should steer away from any insurance policy that limits the Appraisal Clause process. It is always in the best interest of the parties for any covered loss to be eligible for this course of action.
e spirit of the Appraisal Clause is to resolve disputes fairly – and to do so in a timely and cost-effective manner. rough the Appraisal Clause, disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased, experienced and independent third-party appraisers when compared to a mediation, arbitration and litigation. Over the years, we have handled thousands of complex appraisal clause assignments. We have most insurance policies in our library. Please call me should you have any questions relating to the Appraisal Clause process. I thank you for your question and look forward to any follow-up questions that may arise. Sincerely,
16 January 2019 Texas Automotive
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PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment 17 January 2019 Texas Automotive
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Cover story
“We’re all in this together.” When ABAT President Burl Richards spoke these words to Texas Automotive a few weeks ago, he was in the process of working with the Houston Auto Body Association (HABA) in launching perhaps the biggest legislative endeavor in Texas automotive history. At the time of this writing, both groups were working together to draft an updated version of previous House Bill 3804 to introduce in the upcoming 2019 session. Once filed under its new, to-be-determined number, the updated bill will aim to dramatically improve consumer rights and safety in the Lone Star State.
18 January 2019 Texas Automotive
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By Joel gausten
“there’s power in numbers. When we can combine our efforts, entities like tdi and the Legislature will see that there’s a lot of support behind this. this is a not a situation where five or 10 shops have an issue. this is a state issue. it’s big enough for all of us to get together. Why wouldn’t we combine all of our efforts and make one big push to make something happen?” “e bill will give the Texas Department of Insurance [TDI] further authority to enforce the Consumer Bill of Rights* that insurers are required to follow when a vehicle has been involved in an accident,” explains HABA Legislative Liaison Larry Cernosek. “We also want ‘steering’ to stop because it is against the insurance laws in Texas.” Stronger enforcement of the Texas Consumer Bill of Rights will result in (among other things) an increased focus on Subsection 27 – crucial wording that would seriously halt many of the issues causing frustration on the shop floor: CHOICE OF REPAIR SHOP AND REPLACEMENT PARTS. You have the right to choose the repair shop and replacement parts for your vehicle. An insurance company may not specify the brand, type, kind, age, vendor, supplier or condition of parts or products used to repair your automobile. e insurance company must provide you notice of the above requirements as follows: • Claims submitted by telephone –written notice within three business days or immediate verbal notice, followed by written notice within 15 days; • Claims submitted in person – immediate written notice at the time you present your vehicle to an insurer or an insurance adjuster or other person in connection with a claim for damage repair: or • Claims submitted in writing – written notice must be provided within three business days of the insurance company’s receipt of the notice. Richards sees ABAT and HABA’s joint legislative step as the best option available after both associations exhausted other remedies. “We went through the gauntlet on this. We started with the TDI. We’ve met
with them on three separate occasions this year. When we met with them, the TDI made it very clear to us that the only way they can enforce any kind of laws is if it becomes law through the legislative process. e TDI says that their hands are tied. I believe that the laws are already in the books, but I don’t think they’re being properly interpreted. Legislation needs to define those laws. Quite honestly, there’s nobody else who is going to help us, but the TDI did tell us that if we were to present a consumer-friendly bill to them, they would look at possibly backing it. I think that’s huge.” Cernosek agrees that legislation could offer much-needed solutions to the roadblocks shops face in doing things the right way. “e problem is that insurance companies have found loopholes to steer repairs to their DRPs by telling the insured or claimant that the repairs can be done faster if they use that shop because an appraiser does not have to go there to inspect the damage. Customers are also being told that they can get a rental vehicle at the same place and the vehicle repairs will have a lifetime warranty. e insurance companies are lying about the process. Any shop can get a rental vehicle that has been set up by the insurance company, and the repairs are also given a lifetime warranty by that facility. e insurance company really can’t offer a guarantee because it is against the law in Texas for a carrier to own a body shop. All we want is to be able to repair vehicles as per the manufacturer’s specifications and get paid for the repairs for the safety of the consumer.” When it comes to promoting the importance of safe repairs, ABAT and HABA will be armed with critical ammunition when they hit the Legislature this time around. Last year, both associations were among the financial
19 January 2019 Texas Automotive
supporters of the latest Todd Tracy vehicle crash test in California, which proved that only genuine OEM replacement parts perform as intended by the automaker in a collision. “We have the crash test data to prove our point that vehicles have to be repaired to the manufacturers’ specifications,” Cernosek says. “We know of no person or group who could be against us; that is why we have come together to get this legislation passed.” Additionally, Cernosek is excited to report that the associations have slated a special “Collision Day at e Capitol” for February 12 that will put repairers and other industry representatives in direct contact with state leaders. “We are asking every body shop to come join us.” A legislative campaign is often a time–consuming and daunting task, but ABAT and HABA are committed to seeing the effort through to the end. In Richards’ mind, the spirit of unity shown by both groups as they enter 2019 demonstrates that the Texas collision repair industry is ready to stand up as a collective force for change. “ere’s power in numbers. When we can combine our efforts, entities like TDI and the Legislature will see that there’s a lot of support behind this. is is a not a situation where five or 10 shops have an issue. is is a state issue. It’s big enough for all of us to get together. Why wouldn’t we combine all of our efforts and make one big push to make something happen?” *e complete text of the Texas Consumer Bill of Rights is available online at tdi.texas.gov/rules/2012/ documents/Consumer_Bill_o1.pdf.
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20 January 2019 Texas Automotive
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industry advice: asK MiKe
How Can Shops Better Attract New Technicians? this month, we “asK MiKe” to discuss how shops can better attract and retain new technicians. 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: Obviously, a lot of shops out there have a hard time finding and retaining new technicians. Finding success in this arena typically begins at the vocational school level. Based on your experiences as a former shop owner, how can repair facilities work to better connect with students before they graduate to bring them into the industry? Mike Anderson: ere’s a saying: ‘Don’t steal fish from another man’s pond.’ It was never my goal to try to recruit employees who worked at other facilities. at’s not to say that I didn’t have people working for me who had previously worked somewhere else, but I didn’t reach out and try to recruit people from another shop. I didn’t believe in that. When I first purchased Wagonwork from my dad in May 2000, my goal was to grow our staff. I did that in a variety of ways. e first way was
through what is now called SkillsUSA. Because I was fortunate enough to live in the DC/Maryland/Virginia area, there were multiple vocational school programs at that time. I got involved in the Advisory Boards at each of the schools that were in my local area. At one time, I was on seven or eight different high school Advisory Boards. e first thing I did when I joined those Boards was sit down with the instructors and ask, ‘What do you need from me?’ I found out that a lot of the programs had restricted budgets. I started working with them in getting the materials, tools and equipment they needed to modernize. e second thing I did was offer up one of my employees as a monthly guest speaker to inform students about the different positions and opportunities in the collision repair industry. I also put together a curriculum for students so they could prepare for their
21 January 2019 Texas Automotive
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).
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industry advice: asK MiKe
“
We would go to the schools and conduct contests for the students. My employees would serve as judges. at the end of each contest, we’d say to the students, ‘Okay, here’s how you should have done this. here’s what you could have done to be more efficient or more quality-oriented.’
SkillsUSA competitions. I gave that curriculum to the schools and said, ‘ese are the things that the students really need to have in order to be successful. If they don’t have these things, let us know and we’ll supply that for the contest.’ We would go to the schools and conduct contests for the students. My employees would serve as judges. At the end of each contest, we’d say to the students, ‘Okay, here’s how you should have done this. Here’s what you could have done to be more efficient or more quality-oriented.’ is led to us conducting the SkillsUSA contests for Virginia and Maryland. We did those for many years. We would host those contests at our shops so that the students were all using the same welder, tools and equipment. We partnered with our vendors and equipment distributors to help us host these full-day events. While my employees conducted the contest, I talked with the parents about debunking some of the myths in the industry. During the years we hosted the contest, I don’t think we ever had anyone from Maryland or Virginia place less than fifth for Nationals. e students we worked with always did extremely well. Our work with SkillsUSA also came with a side benefit in that we got to see how the students worked. It was almost like an NFL draft day. Also, the students got to see our shop, and we often had Porsche, Mercedes-Benz and Audi vehicles there. It helped us to recruit a lot of employees. at wasn’t
our intended goal, but it was another nice benefit. Towards the end of my career as a shop owner, I had 63 employees. Most of them were in their twenties and thirties, and more than 50 of them came from SkillsUSA. During the summers, we would take on a lot of students through an area apprenticeship program. At the time, GEICO would pay up to $3 an hour, up to a 40-hour week, for a one-year period to help encourage shops to hire apprentices. I managed that apprenticeship program for WMABA, and we would place the students in other shops. GEICO was a great supporter back then. In addition to working with vocational schools, we would also connect with colleges and work with students on the post-secondary level. Another thing we did to recruit employees was work with the Association for International Practical Training [AIPT]. We brought people in through J-1 work visas from Denmark, Germany, France and England. A J-1 visa allows people to come and experience the American way and work here legally for 18 months. We made sure we furnished them with a place to live and paid them a fair wage. We had six or seven employees who came over from Europe. All but two of them just loved America, and they actually applied for a permanent green card and ended up working for us. We also tapped into the military. Because I had been in the military, I knew a lot of those people were looking to find a career afterwards. Every military branch has a website where you can look at the résumés of military people as well as post ‘help wanted’ ads. When we developed our website, we created a ‘careers’ section. I find that most shop websites don’t have a place where people can go to apply for jobs. We also developed a recruitment brochure. Unfortunately, a lot of people want to hire those who are already trained. While that is an easy, short-term solution, I found it was better to suffer through the pain for the first year or so and give inexperienced people an opportunity. Once you are a year or 18 months into it, you have a fresh pipeline of people coming in. Above all, I want to recognize my employees who were willing to take on apprentices and train them. I may have found and recruited those apprentices, but my employees were the ones who helped these recruits thrive.
22 January 2019 Texas Automotive
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23 January 2019 Texas Automotive
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aBat Member Profile
By Joel gausten
Miracle Body & paint it all started with a lot of hail. In 2000, a major storm swept through San Antonio, damaging countless vehicles in its wake. Already a popular auto glass and accessories vendor among area dealerships since 1986, Miracle Windshield Center owner Manuel Rubio suddenly found himself fielding requests from his customers to actually help repair the vehicles hit hard by the severe weather. Before he knew it, he was purchasing equipment and learning proper repair procedures. “We ended up learning on brandnew cars how to do replacements and repairs!” he recalls. “Being in the auto glass business, I received help from some of the shops I was servicing. I reached out to those shops, and some of the managers sent me technicians and helped me accommodate these repairs and continue to learn.” While Rubio initially wanted to help his customers and fellow community members in their time of
need, he quickly realized that he truly loved the business of collision repair. By 2004, the glass and accessories side of his business was phased out to make room for his new enterprise: Miracle Body & Paint. With his wife and shop co-owner, Elva, by his side, Rubio has spent the last 15 years building the repair incarnation of Miracle into one of the region’s most celebrated facilities. Strictly independent, pro-consumer and A-plus rated by the Better Business Bureau, the shop currently employs nearly 60 people and has the capacity to repair an average of 300 cars each month. Additionally, Miracle is the official collision repair destination for the San Antonio Spurs. Rubio also operates Miracle Auto Rentals, which was founded in 2016. e business boasts 50 vehicles and rents out to customers of the main Miracle shop. “I recommend that collision shops
the husband-and-wife team of Manuel and elva Rubio
add a rental car business in order to enhance the customer experience,” he says. As his business continued to evolve, Rubio put his University of Texas degree in business administration to good use by transitioning into a strictly managerial role. “For the past few years, I’ve been able to work on the business instead of in the business. Once I made that move, I was able to see things from a whole different perspective and invest my time in continued education, improvement and technology.” In addition, Elva holds a degree in international business from St. Edward’s University in Austin. Not surprisingly, this commitment to staying on the cutting edge eventually led Miracle Body & Paint to ABAT. Last year, Rubio attended the association’s Trade Show for a second time and was blown away by how much the event had grown. After spending time with various ABAT members during and after the event, he decided it was time to elevate his participation in the group and join the Board of Directors. “ABAT opened my eyes to how important OEM procedures are. I’ve received great advice and awareness from the association.” Proud to serve his first term on the Board, Rubio hopes that he can encourage other shops in San Antonio to get involved and add strength to ABAT’s ever-growing membership. “If not us, who? If not now, when? If someone would have had an association for me in San Antonio when I stepped into this side of the business in 2000, I would have learned a lot more a lot faster. I would probably be further along than I am now. I want to make sure I do what I can to contribute to the industry and protect our communities and our consumers.”
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25 January 2019 Texas Automotive
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haBa Meeting Recap Houston Auto Body Association Hosts Sponsor Appreciation Day, Looks Back at 2018 On december 1, the houston auto Body association wrapped up an incredibly active 2018 with a special sponsor appreciation event at the Providence Plantation Ranch in Rosharon. e Saturday event was created as a way for HABA to ring in the holiday season and thank the sponsors that contributed to the association’s success throughout the year. Despite bad weather hitting the area in the days prior to the gathering, HABA President John Kopriva was pleased that a “bluebird day” was enjoyed by all and it could not have been a better day.
In addition to helping themselves to delicious barbeque (prepared in part by Kopriva’s son, David), attendees were invited to participate in competitive trap and skeet shooting. e day included a legislative update from HABA Board member Larry Cernosek, while Kopriva provided an overview of the association’s activities in 2018. Following an annual planning session, HABA started the year by working with the
an unforgettable time was had by all at the Providence Plantation Ranch.
26 January 2019 Texas Automotive
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HOUSTON AUTO BODY ASSOCIATION Membership Application Please Print
Company Name:
Primary Contact:
________________________________
________________________________
Business Address, City, Zip Code
Phone:__________________________
________________________________
Years in Business: __________
Email:___________________________
Website:_________________________
____ Member Dues $450 (all body shops)
____ MSO dues $250 Per Shop
____ Af liate dues $450
____ Sponsorships - See Attached
NOTE: Please make your check payable to Houston Auto Body Association or (HABA) and submit membership dues and application to: Houston Auto Body Association 4619 Harrisburg Blvd. Houston, Texas 77011 or sign up online @ www.HABAonline.org All new membership applications require nomination and review from the Board and a majority vote for nal approval. (Please Sign Here) X _______________________________________ Referred By:
_______________________________________
By signing this form, I agree to abide by the Association code of ethics including all bylaws that govern the Houston Auto Body Association.
OUR MISSION The Houston Auto Body Association is comprised of collision repairers devoted to the advancement of the collision repair industry. Our mission is to create an environment of professionalism, respect, accountability, excellence, enthusiasm and the ability to collect fair and reasonable compensation for collision repairers who properly restore vehicles to their safe pre-loss condition. 27 January 2019 Texas Automotive
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haBa Meeting Recap Houston Police Department to address towing and storage regulations. e group’s consumer advocacy efforts included providing financial support to Texas Watch and support to the Todd Tracy crash test. Additionally, HABA met numerous times with the Texas Department of Insurance (TDI) in an effort to enforce the Consumer Bill of Rights, addressing issues surrounding Labor Rate suppression, steering and insurers insisting on the use of aftermarket parts over OEM products. On the educational front, HABA hosted a Fall Conference in November and member workshops with CCC Information Services and Sam and Richard Valenzuela of National AutoBody Research. e latter presentation featured a hands-on user overview of the Variable Rate Survey. e Valenzuelas are slated to return to host a second HABA workshop in early 2019. Other plans for the new year include considerable work in the legislative arena. (Read this month’s cover story for more information.) HABA would like to again thank their sponsors for making 2018 such a success. For more information on upcoming HABA events and seminars, go to habaonline.org.
TXA
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28 January 2019 Texas Automotive
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