The official publication of the Auto Body Association of Texas (ABAT)
September 2023 $5.95
Texas Auto Body Trade Show
Highlights
BIG SHOTS and more! Update on
SCRS’ BLEND STUDY “Do You See This Type of
UNLAWFUL CLAIMS HANDLING PRACTICES www.grecopublishing.com
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Contents
SEPTEMBER 2023
on the
cover
Official publication of the Auto Body Association of Texas
The 3rd annual BIG SHOTS Competition at the Texas Auto Body Trade Show provided an opportunity for competitors to test their skills in PDR, estimating, painting and body repair. This year’s winners (L-R): Joshua Turnipseed (Grimes Paint and Body; Forney), Davis Richards (Park Place Dealerships; Dallas), Henry Vasquez (Uptown Automotive; Houston) and Tony Rios (The Dent Stop; Dallas).
ABAT BOARD OF DIRECTORS
TEXAS AUTO BODY TRADE SHOW HIGHLIGHTS:
12
Coming Together, Committing to Change for the Sake of Proper Repairs by Alana Quartuccio
DEPARTMENTS 4
PRESIDENT’S MESSAGE by Burl Richards Another Great Success
6
EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle Texas Auto Body Trade Show: Success as Expected with a Bit of the Unexpected
13 16 18 19 20
TEXAS AUTO BODY TRADE SHOW EDUCATION HIGHLIGHTS Finders of Fact Updates on SCRS’ Blend Study Repair Planning Be Extraordinary! The Industry Over a Bite and a Pint ASK THE EXPERT by Robert McDorman “Do You See This Type Of Unlawful Claims Handling Practices Often?”
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Vice President Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
Treasurer David Osburn “Ozzy” David McDavid Ford ozzy6384@gmail.com (817) 648-5759
Executive Director Jill Tuggle jill@abat.us (817) 899-0554
ABAT BOARD MEMBERS Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
Logan Payne Payne & Sons Paint & Body logan@paynescollision.com (214) 321-4362
Brandon Gillespy Park Place BodyWerks bgillespy@parkplace.com 214-443-8250
Anthony Palomo West Texas Auto Color japalomo3@yahoo.com (806) 831-7765
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Albert Salinas South Houston Nissan asalinas@southhoustonnissan.com 833-856-7871
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
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 PRESIDENT/PUBLISHER Thomas Greco / thomas@grecopublishing.com VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio / alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk / chasidy@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
ADVERTISERS’ INDEX AkzoNobel...................................................................5 Auto Claim Specialists..............................................21 AutoEsolutions............................................................4 BASF..............................................................................10 Beacon Equipment Resources...............................6 CAR-O-LINER Southwest.........................................26 Classic Chevrolet.......................................................7 Cliff’s Check Cashing Stores Inc............................24 Coach Specialists / Sprinter Center......................25 Ecotech.........................................................................27 English Color & Supply.............................................27
OFFICE MANAGER Donna Greco / donna@grecopublishing.com
FindPigtails.com..........................................................22 Paint Works Dallas.....................................................IFC Petty Details.................................................................19 PPG................................................................................OBC Reliable Automotive Equipment..................14-15 Spanesi.........................................................................25 Tasco Auto Color.......................................................22 Transparent Claim / Who-Owes-What..................11 USI..................................................................................23 VSSTA...........................................................................8-9 Womens Industry Network......................................24 3 September 2023 Texas Automotive
SPECIAL CONTRIBUTORS: Burl Richards / Jill Tuggle Robert L. McDorman / Mike Anderson / Jacquelyn Bauman @grecopublishing
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 © 2023 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
Another Great Success
J
Just a few weeks ago, ABAT hosted our 2023 Texas Auto Body Trade Show, and not surprisingly, the most recent iteration of our annual event was yet another raging success. I know I say this every year, but that’s because it’s true…our show just keeps getting bigger and better – in true Texan fashion! The 2022 show grew by leaps and bounds compared to previous years, and we managed to add even more value in 2023. Our educational agenda was filled with great speakers like Aaron Schulenburg from the Society of Collision Repair Specialists (SCRS), a great addition whose presence added a ton of value, as well as Industry Icon Mike Anderson (Collision Advice) who always brings a lot of enthusiasm. We learned a lot from Danny Gredinberg of the Database Enhancement Gateway (DEG) as well as ABAT’s own Logan Payne (Payne and Sons Paint & Body Shop; Dallas). Robert McDorman (Auto Claim Specialists) always brings the
heat on legislative and appraisal matters, and this year, he was joined by experts like ABAT Burl Richards Lobbyist Jacob Smith (Long Leaf Consulting), ABAT President Nick Steingart (Alliance of Automotive Innovation), Representative Travis Clardy and yours truly. Our top-notch classes also included a bunch of first-time presenters at our show: Erin Solis (Certified Collision Group), Bobby Beason (VSSTA), Christian Ruecker (DEKRA), Tommy Ames (Auto E Solutions and 1 Source ADAS) and Tom Hoerner (Sherwin-Williams). Every educator on the slate did a phenomenal job of teaching everyone something new, providing information you can’t hear just anywhere. We’ve got the best of the best under one roof. But those classes weren’t the only thing we offered. In addition to multiple happy hour and other networking opportunities, over continued on pg. 24
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Executive Director’s Message Texas Auto Body Trade Show: Success as Expected, with a Bit of the Unexpected
A
All I can say is WOW! Y’all really showed up for the Texas Auto Body Trade Show! And if you didn’t show up, WOW did you miss out. I sound like a broken record telling you each year how we broke records – but hey, we did! Each year the show has grown, and 2023 was no different. This year, EVERYTHING was bigger and everything was packed! Hundreds of people flocked to the Irving Convention Center to attend the show, compete to win the title BIG SHOT, meet celebrities, check out both Rivian models and so much more! The Rivians actually paved the way for us to create change to some outdated policies and provide some education for the local Fire Marshal. Last year, we asked to bring them into the building and were told “no” every which way to Sunday, on account of the building policy that the main battery needed to be disconnected. When we were told “no” again this year, we did what ABAT does best – pushed for change to a policy that wasn’t reflective of the vehicles we were working with. I asked for a meeting between
us, Rivian and the Fire Marshal, which ultimately led to them allowing us to bring not one, but two of the electric vehicles into the building. Another inadvertent change that Jill Tuggle happened this year was the addition of ABAT Executive Director a non-shop related vendor who arrived – much to my surprise – selling quite expensive massage guns. “How did you allow that?” one might ask, since I am usually pretty thorough about making sure each exhibitor directly serves the collision repair industry. Well, because the owner (who came in at the last minute) had a very thick accent and when asked what the product was, twice he replied, “Pain guns” - which, to me, due to his accent, sounded exactly like “paint guns.” I guess all’s well that ends well, though, because it turns out we are a bit of a “tense” group. They had no problem offloading their product. Who knows? Maybe we will let them come back. continued on pg. 25
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Trade Show Highlights 2023 Texas Auto Body Trade Show Highlights: Coming Together, Committing to Change for the Sake of Proper Repairs Progress doesn’t come from coasting by day to day. It’s what you put into it. Committing to learning new things, making changes for the better and coming together as one entity can only help make the collision repair industry stronger. Last month, ABAT once again hit it out of the park with the 2023 Texas Auto Body Trade Show bringing in the best educators, top-of-the-line vendors and more collision repair related fun than ever could possibly be had all under one roof. From start to finish, the Irving Convention Center was alive and kicking with activity from car shows, in-booth demonstrations, lively and interactive educational seminars, Happy Hours, Big Shots and more! For the third year in a row, the Big Shots Competition was a highlight of the show, literally taking center stage as the contest took place in the middle of the show floor. Some came back to try to reclaim their title, while others came in for the first time and went all the way to the top. Competitors took part in one of the four categories – estimating, PDR, auto body tech and painting. A continuous flow of on-lookers crowded around the Big Shots ring all weekend as they watched competitors show off their glue pulling techniques, write estimates, apply seam sealer and demonstrate welding and take part in the virtual painting competition;
hands-on paint finals took place off-site at a nearby Sherwin-Williams facility. First place winners (featured on the front cover of this month’s issue) took home a trophy, $1,000 in cash and many other prizes all courtesy of Big Shots Sponsors: 3M, AkzoNobel, Anson PDR, LLC, CarO-Liner SW, CCC Information Systems, Keco Body Repair Products, Norton/Saint Gobain, Polyvance, Solidus and SherwinWilliams. PDR Tech First Place: Tony Rios Second Place: Luis Ruiz Third Place: Levon Homer Estimator First Place: Davis Richards Second Place: TC Traweek Third Place: Garrett Beard Painter First Place: Henry Vasquez Second Place: Antonio Oviedo Third Place: Cesar Jiminez Auto Body Tech First Place: Joshua Turnipseed Second Place: Robert Axley Third Place: Joshua Valle
Exhibitors lined every aisle with equipment to showcase and/or demonstrate, while other vendors had vital resources and valuable services to canvas to the repairers who walked the floor. For Diamond/Car Show Sponsor English Color & Supply, the show provided the paint and equipment distributor the opportunity to showcase their mobile training unit right on the show floor. Attendees were able to tour the unit and learn about the benefits of having a training center come to the shop. “It has everything you need,” shared James Tucker of English Color & Supply. “We show up, and we are ready to go. The mobile training unit gives us the ability to certify painters in their shop, which we have the right to do through BASF. The painters leave with the certifications they need. It’s been really working out well for us. Sam Egan of Platinum sponsor VSSTA sang the praises of this year’s show, calling special attention to how well organized and put together the event is for exhibitors wanting to reach a large amount of potential customers. “We want to talk to as many people as we can and then let them know about our product, explain how it benefits them, how it can make them money and protect their liability,” he explained. “It’s been a great experience as it always has been,” commented Jason Wall, District continued on pg. 18
12 SEPTEMBER 2023 Texas Automotive
by Alana Quartuccio
Finders of Fact
L-R: Ware Wendell (Texas Watch), Burl Richards (Burl’s Collision Center; Henderson), Lobbyist Jacob Smith, Robert McDorman (Auto Claim Specialists) and Nick Steingart (Alliance for Automotive Innovation) Since day one, ABAT has been on a mission to call out insurance-led injustices in the hopes of putting a stop to customer under-indemnification. Their efforts have brought many things to light in favor of consumers over insurers. More wins of this nature provide evidence, data and facts, which are needed to build a good case against insurer abuse. The more cases that come to light, such as the recent Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company, where a jury awarded $248,517.59 to a consumer who fought and won, the more ammunition the collision repair industry has against those insurers who try to take advantage of customers. (See bit.ly/Texasverdict for full recap.) This case quickly gained national attention as collision repairers everywhere championed the verdict as a step in the right direction. ABAT President Burl Richards (Burl’s Collision; Henderson) and Robert McDorman (Auto Claim Specialists) set out to educate Texas Auto Body Trade Show attendees about the verdict and stress why building one’s case by blueprinting the repair process is necessary toward fair and reasonable reimbursement – in this case, having a blueprint led to the favorable outcome. Richards expressed that it’s his job “to fix cars, not sue insurers,” but this situation on behalf of his customer was the right one to fight. “It takes a lot of time,” he said. “This was a more than two-year process, but you have to be willing to stand up. If you have the right customer who also thinks pursuing litigation is the right thing to do, then you need to fight for your business.” Echoing the sentiment, McDorman stressed that the judicial system is needed as “finders of fact.”
“The only way things are going to change for the insured consumer is either going to be through legislative measures or litigation,” he stated. “Those are the two measures. Litigation gives the finders of fact that allows the legislator to make the right move based upon the judicial system.” Richards stressed that neither the Texas Department of Insurance (TDI) nor insurance companies determine what a fair and responsible repair is. That is left to the expert: the collision repairers. Blueprinting repairs is so important as sometimes the litigation process is the only way to go, to find out if a court of law thinks the situation is right or not. Communicating with one’s customers is also key, according to McDorman. “You have to let your customers know that it’s a liability issue. When you lay it out for them and ask them if they want their car repaired like the manufacturer says it should be repaired or if they want to do it on the cheap, that has a big sway with customers. You have to have this conversation with them. It’s imperative that you document everything. It’s the way I run my business. The devil is in the details. It’s where he lives.” “In order to get paid, you have to be able to show the documentation,” added Richards. Representative Travis Clardy, a longtime supporter of ABAT’s legislative efforts, chimed in from the audience, echoing the message of documenting: “The more you track is absolutely key. If you pull in the OEM procedures, it’s hard for an insurance company to argue that you should not take those steps to repair the vehicle when you are tracking what the manufacturer says to do.” Clardy reminded everyone in the room who has been fighting the good fight 13 September 2023 Texas Automotive
that their efforts have not gone unnoticed. “You may think that it didn’t matter when your people wrote letters, but it made a huge difference.” Taking the topic even further, Richards and McDorman took the stage on day two to serve as part of the “Legislation in the Collision Space” panel, featuring ABAT Lobbyist Jacob Smith (Long Leaf Consulting) and Nick Steingart (Alliance of Automotive Innovation), led by Ware Wendell of Texas Watch. “The Appraisal Clause is the guardrail for indemnification,” McDorman told the audience as the panelists discussed ABAT’s efforts to pass legislation that would require all insurance policies to include an Appraisal Clause that allows an independent third party to evaluate the loss when there is a dispute between an insurer and vehicle owner. State Farm removed the Appraisal Clause from their policy, and now others, like GEICO, may be looking to mirror State Farm. McDorman suggested that filing an administrative action may need to be the next step. It’s a fight worth fighting, according to McDorman. “Anyone who knows me knows I’m a lover, not a fighter, but if I do have to fight, I’m going to fight like the third monkey in line to get on Noah’s Ark… and I’ll be the first one on that boat!” Although the last proposed bill which would require all insurance policies to include the Appraisal Clause made it just one step away from the Governor’s desk before it died, it went farther than any other bill has in the past, and those efforts did not fall on deaf ears. Smith commended ABAT for their efforts, reminding the association and its members that they made amazing strides. “The letters that went in meant something. I had legislators call me. We drove this issue. We were leaders. That takes a lot of grassroots movement, and it can take a lot of money, and we did it for a lot less than most organizations have to put in. ABAT consists of hard-working people, and it showed up there. Travis Clardy gave us tremendous support. He made the chairman vote for us, and he is known to be friendly with insurance companies.” “When the time comes, we need calls to legislators and to the TDI,” Richards encouraged. He pointed out that the bill isn’t about money; it’s about making sure vehicles are being safely and properly repaired.
14 SEPTEMBER 2023 Texas Automotive
15 September 2023 Texas Automotive
Trade Show Highlights 2023 Updates on SCRS’ Blend Study Society of Collision Repair Specialists Executive Director Aaron Schulenburg made his debut appearance at the Texas Auto Body Trade Show to update Lone Star collision repairers on the latest developments on the widely-talked about paint blend study which proved something repairers have always believed was true – that it takes longer to blend than to refinish. Schulenburg provided an overview of what went into the study, who was involved (five major refinish companies) and all the steps taken to make sure every step was documented along the way. The study evaluated blending in comparison to full refinish values when considering solid, metallic and tri-stage refinish options across all the paint manufacturers and concluded that blend times are 31.59 percent greater than full refinished value on average. Since revealing the results at the Collision Industry Conference in Las Vegas November 2022, discussions have been had with all three Information Providers (IPs). CCC/ Motor almost immediately came out with a response to the study, acknowledging that estimated work time should be judged by an estimator or appraiser following on-the-spot evaluation of the specific vehicle – and they will put this into effect this October. Schulenburg unveiled Audatex’s proposed changes to their system, which came out shortly before the July CIC meeting: Audatex’s refinish labor is based on the use of new and undamaged panels. Audatex estimating does not provide a standard labor allowance for blended panels, as this requires an estimate preparer’s judgment, expertise and consideration
of the unique requirements for each repair. Determination and assessment of labor and materials necessary in the blending process is best provided by the estimate preparer during the estimate preparation process. To assist the user, profile settings allow for customization to enter a specific Aaron Schulenburg blend percentage, as necessary. (SCRS) Schulenburg reflected on the July CIC meeting where he openly stated that Mitchell had been the least responsive to the findings, going as far as to say “we give you enough” in the conversations SCRS had with them following the blend study. “Responding with ‘we give you enough’ doesn’t even answer the questions,” Schulenburg stated to the audience about the dialogue had with Mitchell, which always seemed to default back to that statement. Since the July CIC meeting and possibly in response to the press that followed, Mitchell has since stated they will announce something in regard to the blend study report in time for the November CIC meeting, something which Schulenburg said he was glad and grateful to hear.
Repair Planning Danny Gredinberg (Database Enhancement Gateway) and Logan Payne (Payne & Sons Body & Paint) set out to inspire auto body professionals to reconsider how they approach customer relations and manage customer expectations. “Think about what you need to do differently,” suggested Gredinberg. “You want to have a conversation with your customers. Most customers don’t understand what their policies say. Be transparent right up front. Tell them we can submit the bill on your behalf, but there may be an additional cost on your side, that you don’t know what the cost will be yet as you haven’t
Danny Gredinberg (DEG)
disassembled their vehicle and the insurer hasn’t seen it yet.” When referring to estimates, he said they are really nothing more than a “guesstimate.” “The number one thing customers care about is how long it is going to take to get done,” he added. “You can’t Logan Payne give a date of competition (Payne & Sons without knowing how long Body & Paint) it’s going to take. Don’t set unrealistic expectations. Establish up front that some things can be out of your control. Keep them informed about the process without ever having to give them a date.” “People just want some kind of answer,” shared Payne. “The only thing we can control is how long the car will be worked on. We have no control over insurance delays. Once we have all those things worked out, we have the parts in and who is paying for what has been agreed on, we can get an idea for how long the repairs will take.”
16 SEptember 2023 Texas Automotive
ON THE FLOOR
17 september 2023 Texas Automotive
Trade Show Highlights 2023 continued from pg. 12
Be Extraordinary!
Mike Anderson (Collision Advice) Running a successful business takes more than dollars and cents. There is so much more one should be thinking about. Things that can take a shop from average to extraordinary. Repairers filled the room to hear one of the most extraordinary speakers on the circuit, Mike Anderson (Collision Advice), inspire and encourage them to take things to the next level. One of those extraordinary areas which a shop should be thinking about is building an extraordinary customer experience. “We need to be asking customers what is most important to them in order to deliver a personalized experience,” advised Anderson. If a car is on hold waiting for a part to come in and you have no update to give the customer, giving them a courtesy call with a “no-update update” can do wonders, as it lets them know they are being thought of and not forgotten. Having an online presence 24 hours a day, seven days a week, 365 days a year shows customers that your business is available to them when they need you most. “Most accidents happen when your shop is closed,” stressed Anderson. “The first shop that gets back to them gets their business.” One mistake many collision repairers may be making is having an aversion to technological advances, which only does a disservice to the industry. “Too often, when CCC or Mitchell puts out new software, we complain about it. We need to quit that and embrace it. The one thing you can never get back is time. What can we do to give our people more time to write an active repair plan?” Anderson also got repairers thinking about the environment in their shops. “Be extraordinary in building your culture. You want to be a place where people are proud to work for you, where they don’t just love their job; they love your team. Think about your team. Would they want to wear a jersey with your company name on it?”
Sales Leader for AkzoNobel. “The show continues to drive more and more members throughout the state. Our attendance has been up, and we enjoy being a sponsor for the Big Shots Competition. Our activity in the booth and our customer engagement continues to grow. All the resources that this show brings provide tremendous value to our customers’ training needs, from a profitability standpoint. We are happy to support that because we have a lot of common interests. At the end of the day, it’s making better, more profitable repairs for our customers and making the industry better as a whole.” “It’s a good show to attend as it allows us to meet up with our local customers; I say ‘local’ because ABAT Executive Director we ship everywhere,” Jill Tuggle said Ruston Blanchard of FindPigtails.com, another returning exhibitor. “It’s always good to put a face to the name, and that’s a huge part of it.” Tommy Ames of Gold Sponsor 1 Source ADAS and Auto E Solutions is a member of and a big supporter of ABAT and their show. Ames, who grew up in the industry, stressed how he appreciates ABAT’s goals and what they are trying to do to support body shops in the Lone Star state. “I think the best thing about the show is the networking that you get with all the different people from all over who have different ideas and different ways of doing things. We are all trying to accomplish the same goal. It’s a collision industry based organization catering to the collision industry, and it’s a good avenue for us.” A regular exhibitor for years, USI North America returned to showcase their innovative spray booth solutions. “The show grows every year,” observed National Sales Manager Stefano Moretto. “We’ve been one of the companies who have been coming to support the show since the very beginning. We see more people each year and always encounter customers who are interested in our products.” PPG’s Tim Pearce sees the show as a great opportunity “to give back to the industry and be here for the new technicians coming up to show them the latest technology.” He noted the great turnout and activity on the trade show floor. “We’ve had a lot of interest and questions about technology. That’s one of the things we have to focus on now. Technology changes pretty fast and you have to stay on top of it.” “It’s a great opportunity to see our existing customers who we don’t get to see a lot of in between the shows, as well as having the chance to meet new prospects who are looking to purchase
18 SEPTEMBER 2023 Texas Automotive
paint booths and to see how the industry is growing,” relayed Chris Curran of Eco-Tech Systems, distributor of Accudraft paint booths. “It’s been a great show. I’d say traffic on Friday was double than it was in the past, and Saturday was great too. I am already looking forward to next year.” “Today was a really good day,” reported Chad Neal of Happy Hour Sponsor Innovative Collision Equipment on the second day of the event. “I’ve been introducing new products, and the show is a good way to get your name out there.” “It’s been a good turnout for vendors and shops,” said Jeff Frye of Diamond Sponsor BASF, which has been participating with the Texas Auto Body Trade Show since it first began. They come back year after year as the show provides them a chance to “visit with a lot of our existing customers and to meet shop owners who we don’t currently sell to. We get to interact with a lot of people in the industry.” “We enjoy seeing our friends and customers at this event,” expressed Kayla Hughs of Car-o-Liner SW. “ We met shop owners with their families and/or work team. We got to hear insight and experiences from shops all over the Southwest. Jill and the ABAT
team have done an excellent job, as always, pulling everyone together to learn, converse and unite. We had a great experience and look forward to seeing what’s next! “
The Industry Over a Bite and a Pint Because the Texas Auto Body Trade Show is indeed all about bringing the many faces of the industry together under one roof, it was only fitting that some of the educational sessions included opportunities to have a bite and imbibe! Attendees enjoyed their lunch with peers as Mike Anderson (Collision Advice) and Danny Gredinberg (Database Enhancement Gateway) took the stage, engaging all in a fun discussion that probably could’ve been called “Lunch, Learn and Laugh.” Gredinberg and Anderson took turns tagging in on subjects such as disconnecting battery considerations and EV preparedness. “Every single OEM has a process for things you have to do, whether it’s a wait time or turning off sensors before you can ever disconnect the battery,” Gredinberg cautioned. “What is your plan?” Anderson asked the lunch crew. “Do you have an area in your shop to contain these vehicles, to disconnect the battery, or do you have a place to call for service?” Later in the day, Anderson grabbed a beer with Aaron
L-R: Eric McKenzie (Park Place Dealerships), Kelly Logan (Rivian), Aaron Schulenburg (SCRS) and Mike Anderson (Collision Advice)
Danny Gredinberg (DEG) and Mike Anderson (Collision Advice) Schulenburg (SCRS), Kelly Logan (Rivian) and Eric McKenzie (Park Place Dealerships) for the special “Industry Over a Pint” session, where all were invited to hang out and sip some suds while one of the industry’s most dynamic speakers, the head of the national association, a leader of a new innovative OEM and a luxury automobile body shop director went over take-aways from the day. Schulenburg brought to light a concerning view that the industry will have to figure out – not only must we figure out how to get consumers educated enough to ask the right questions, but how do we get them to know if they are receiving the right or wrong answer when they do ask those questions. For example, a customer may be informed enough to ask about sensor calibrations, but do they know what the right answer is? Anderson referenced the discussion involving the TDI which had reportedly said they make decisions based on facts. “There’s a message there,” said Anderson. “I need to base my conversations on fact. Sticking to the facts is what can help get the point across to bill payers and customers.”
19 September 2023 Texas Automotive
Ask The Expert
by Robert L. McDorman
“Do You See This Type Of Unlawful Claims Handling Practices Often?” Dear Mr. McDorman, I read your response in last month’s Texas Automotive to the reader’s question about “Consumer Rights and the $248,000 Way to Relief When Cheated by Your Insurance Company.” Was it Mr. Collins’ situation that ultimately led to your reported jury finding or an isolated situation? Do you see this type of unlawful claim handling practice often from the insurance carriers? Thank you for your question. We routinely see this same bad behavior as in Mr. Collins’ situation from many insurance carriers. The insurance code and contract violations we see are rampant with little to no oversight. Earlier this month, yet another insurance carrier agreed to settle with my clients for $50,000 after they sought legal intervention to resolve their insurance code violations, contract violations and under-indemnification issues. In the past several years, we have had more than 100 of our clients, who were harmed by their insurance carriers, also go to the judicial system for relief. Most had their insurance carrier settle with them prior to trial but for similar amounts. Additionally, over the next several months, we will have many more clients, whom we have referred to lawyers to pursue their damages, seeking judicial intervention for their losses. Our clients’ path to relief is well-documented, crystal clear and defined, such as Mr. Collins’ was. We are working vigorously with lawmakers to pass legislation requiring every personal auto policy in Texas to include a structured Appraisal Clause. The Right to Appraisal is the guardrail for indemnification of the loss when a dispute over the loss arises between the insurer and the insured. Without legislation in place requiring mandatory time-sensitive appraisal rights, we can expect to see continued efforts by all insurers to limit or remove economic relief for the insured. In this respect, they can be seen as beavers to running water. Once they see the insured getting some economic relief for their loss, they quickly act to dam up the source of the relief! Over the years, as stark consumer advocates, Auto Claim Specialists has gone to agencies to seek help and relief with welldocumented facts for our clients who have been harmed by their insurance carrier in an effort to bring awareness to these systematic atrocities. At each turn, we were told the only help is to seek legislation or a finder of fact. Now, our advice to our clients who have been harmed and cheated by their insurance carriers is to fight like the third monkey in line to get onto Noah’s Ark when it has already begun to rain, and we will help. We will continue by referring clients needing help to legal teams who can help them be made whole for Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. Robert can be reached by phone at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com.
their loss. In my professional opinion, the more times these systematic under-indemnification schemes are exposed and the more monetary punishment is levied, the quicker change will come about to help us all. The under-indemnification in total loss and repair procedure claims in Texas is rampant. Besides the higher settlements for total loss clients averaging 28 percent above the carrier’s undisputed loss statement, we have also reduced clients’ out-of-pocket expenses on repair procedure disputes such as in the example provided above. These under-indemnification percentages are staggering and harmful to Texas citizens. The spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. Invoking 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. In today’s world regarding motor vehicle insurance policies, frequent changes in claim management, 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 their 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 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
20 SEPTEMBER 2023 Texas Automotive
WE SUPPORT
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We are experienced in negotiating claims with insurance companies.
As a Licensed Public Insurance Adjuster Agency, we can ensure a fair settlement on your auto claim. It is our duty to act on your behalf!
CONTACT US FROM ANYWHERE IN THE U.S.! 201 Main Street Suite 600 Fort Worth, TX 76102 817-756-5482 Fax: 866-550-0484 Toll Free: 800-736-6816 claims@autoclaimspecialists.com
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Founder Robert McDorman
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21 September 2023 Texas Automotive
22 SEPTEMBER 2023 Texas Automotive
Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service? To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up. Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible. The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production." After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop. "We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.” Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so
we push these booths and they never let us down.” Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!” After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.” Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth." His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”
USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 23 September 2023 Texas Automotive
President’s Message continued from pg. 4 50 exhibitors on the show floor provided attendees with a chance to check out the latest and greatest tools and equipment available for collision repair shops. One of my favorite things over the past couple years has been our BIG SHOTS Competition, and this year’s competitors were simply outstanding! We’re still getting our feet wet with this new addition to the show, so we’re planning to make it even bigger and are adding committees within the association in hopes of expanding it to double or triple its current size for 2024. ABAT is so grateful to everyone who makes this show possible each year – from our wonderful exhibitors, sponsors, educators and attendees to the entire Board of Directors and ABAT Executive Director Jill Tuggle, as well as the crew at Thomas Greco Publishing for producing Texas Automotive and being our mouthpiece to address our industry’s issues on a local and national level. Altogether, that camaraderie that exists among all of us is what truly sets the Texas Auto Body Trade Show apart from any other event of its kind. Our attendees are passionate and want to learn more, and the positive interactions between everyone are completely infectious. It’s like you’re attending a show with 800 of your closest friends because we’re all in this together; that feeling really invigorated me as the president of our association. I guarantee that
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everyone who came out took multiple things home to help improve their business, making the journey worthwhile, whether they came in from down the street or from the opposite side of the country. Attending the Texas Auto Body Trade Show is the best thing anyone can do for their shop, whether you’re a tech or the owner. Being able to see what’s going on and finding out what ABAT brings to the table is certain to open your eyes to all the ways we strive to help our local industry. I hear that another trade show will be trying to make its debut in Texas next year, but the difference between us and them is that show is put on by marketing people who are trying to put money in their own pockets, while our funds get reinvested into the industry by supporting ABAT’s legislative efforts and bringing more training and knowledge to Lone Star shops. We provide a bigger return on your investment because we’re here to help YOU. Make sure to stay tuned to abat.us for next year’s dates when they’re announced so you can mark your calendars for the 2024 Texas Auto Body Trade Show. You don’t want to miss it because we’re certain to have something new and exciting up our sleeves! burl@burlscollision.com
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Executive Director’s Message continued from pg. 6 We had such a huge response to some of our classes that we had to move classrooms just days before the show to accommodate everyone who wanted to hear about the hottest topics to hit the industry in the past year: How a jury ordered State Farm to pay over $250,000 in damages to a Texas consumer, the SCRS Blend Study results update and commonly missed procedures, amongst others. The classrooms were standing-room only and left attendees asking for more. The show left us feeling great about all the work we put into this year’s success, and also left us with so many people asking for more. Our competition winner wants to volunteer to head up part of BIG SHOTS next year. Managers want their paint staff to hear the blend study results. Today, I received an email from someone wanting to head up a new ABAT chapter. So, that’s what we plan to give you – more. More of the same topics we heard last month will be coming to a webinar or ABAT meeting near you. The show produced so many great things, but the evolution and growth are shining the strongest -– and that is exactly what we plan to do.
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25 September 2023 Texas Automotive
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