Contents
OCTOBER 2021
on the
cover
Official publication of the Auto Body Association of Texas
ABAT’s 2021 Texas Auto Body Trade Show featured the debut of the BIG SHOTS Competition, an event that tested attendees’ skills in estimating, painting and repair. This year’s winners were (from left to right): Brian Buczynski (Park Place Dealerships; Dallas), Jose Jovel (Helfman Dodge; Houston), Ellis Taylor (Carr’s Corvettes and Customs; Plano) and Davis Richards (Park Place Dealerships; Dallas). Photo by Joel Gausten
“BIG SHOTS” AND MORE:
ABAT BOARD OF DIRECTORS
14
Inside ABAT’s Unforgettable Texas Auto Body Trade Show by Joel Gausten
DEPARTMENTS
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 Paint Works davidosburn@paintworkstyler.com (817) 648-5797
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
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160
4
PRESIDENT’S MESSAGE by Burl Richards A Dire Situation
6 8
EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle Still Think Virtual Is the Way to Move Forward?
10 11
LOCAL NEWS by Chasidy Rae Sisk Collision Pros Share Entry-Level Insights with UTI Students
PUBLISHER Thomas Greco / thomas@grecopublishing.com
NEWS FROM GRECO PUBLISHING Thomas Greco Publishing Names Chasidy Rae Sisk as Managing Editor
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com
18
ASK THE EXPERT by Robert L. McDorman How Can Shops Ensure Proper Indemnification When an Appraisal Is Denied Unlawfully?
OFFICE MANAGER Donna Greco / donna@grecopublishing.com
EDITOR’S MESSAGE by Joel Gausten Thank You and Goodbye
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com
ADVERTISERS’ INDEX 300 Advantage..................................................... 21
FindPigtails.com.................................................... 21
Auto Claim Specialists........................................ 19
Paint Works Dallas............................................... IFC
BASF........................................................................ 9
Reliable Automotive Equipment....................... 12-13
Beacon Equipment Resources......................... 18
Valspar Refinish.................................................... OBC
CAR-O-LINER Southwest................................... 5
Spanesi................................................................... 22
Charles Maund Toyota....................................... 11
Tasco Auto Color................................................. 10
Ecotech................................................................... IBC
USI............................................................................ 7 3 October 2021 Texas Automotive
www.grecopublishing.com
TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2021 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www. istockphoto.com.
President’s Message
A Dire Situation
I
Burl Richards ABAT President
I know I keep talking about the technician shortage, but I’ve never seen it this bad. Recently, an ABAT member with a small shop in the San Antonio market called me after his only A-tech and his lead estimator gave their notice, leaving him to repair his customers’ vehicles on his own. But because he used to be a body tech, a large MSO even approached him, offering a $10,000 sign-on bonus to return to doing body work! After losing his main estimator and his only A-tech, he just doesn’t know what to do. Meanwhile, the market has never been busier – every shop I talk to reports being slammed. There’s more work than we can handle, and we’re all in desperate need of technicians and estimators. The Bureau of Labor Statistics’ 2019-29 workforce projections estimated an annual average of 86,500 job openings for automotive service and collision repair technicians. Other studies predict the number of qualified collision professionals will continue to grow over the next couple decades as technological increases create a greater demand, even as many of our leading technicians and estimators reach retirement and leave the industry. This is a real problem, and we have to do something to start addressing it now! One way to combat the tech shortage by training our teams to help them advance their skills. A lot of shops do exactly that; however, besides competing with large sign-on bonuses from MSOs and consolidators, we’re also competing for quality employees with companies outside our industry. A month ago, the Sadler’s Smokehouse across from my shop posted a sign at their gate: Help wanted, no experience needed, starting at $15 an hour. Yesterday, they’d increased it by a dollar. Every industry desperately needs qualified workers these days. If these young guys can walk in the back of a barbecue warehouse and immediately start making $16 per hour plus huge benefits, why do they want to take on the stress of working in a shop? It’s a real problem.
ATTN ABAT MEMBERS:
So, we need to hire these people at competitive wages, starting them at $17 or $18 an hour even though they don’t know what they’re doing. We invest time in training them to ensure they’re following proper procedures, and we hope they’ll work out. But if they do work out, as soon as we teach them some procedures and they’re actually able to benefit our business, we need to immediately pay them more – or else they’ll go work at the shop down the street with all the knowledge we’ve given them. Another way we can attract more technicians is through involvement with local vo-tech schools and technical colleges. (Check out how some local professionals engaged with UTI students on page 10.) Unfortunately, the vast majority of collision graduates cannot enter a shop and immediately perform simple processes and procedures, like removing bumpers and door handles or even properly buffing a car. If these vo-tech schools adequately trained students to ensure they graduate with “C” tech skills at a minimum, the shops hiring these entry-level technicians could afford to pay them more right out of the gate. We need to offer apprenticeship opportunities for these entrylevel techs and estimators. But most importantly, no matter how we find our new staff, we must continue training them and helping them advance their skills, and then we need to properly compensate them if we want them to stick around. Coming up with a solution to this dire problem requires all of us. What are some other ways you’ve found new employees? How can ABAT’s members work together to find a better way out of this dilemma? I welcome your thoughts and ideas, and if I can help any member business that’s struggling, please don’t hesitate to reach out.
burl@burlscollision.com
TXA
GIVE YOUR CONSUMERS A VOICE!
If you have customers who’ve had issues with their insurance companies (under-indemnification, total loss disputes, etc.) while their vehicles were at your shop, Texas Automotive magazine wants to hear their stories! Contact Texas Automotive Managing Editor Chasidy Rae Sisk at (302) 593-7002 or chasidy@grecopublishing.com to discuss having their story featured in our newest series, “The Consumer’s Voice”! 4 October 2021 Texas Automotive
5 October 2021 Texas Automotive
Executive Director’s Message
Still Think Virtual Is the Way to Move Forward?
T
The Texas Auto Body Trade Show is a wrap, and despite all the things working against us in the world right now, it was a huge success! I almost can’t believe I just wrote that sentence, because two weeks prior to the show, I was scrambling to find ways to make it all work. Yet despite the odds, the Texas collision repair industry showed up in a BIG way. The show delivered on all that we promised: Top-notch education, a vibrantly interactive show floor and lots of fun. We heard from nationally acclaimed speakers on topics ranging from accounting to glue pulling and everything in between. Collision professionals filled the classes, and speakers could be found in the hallways after sessions as they shared their contact information with eager folks who wanted more content and follow up appointments. The show floor came alive with foot traffic and the sounds of large crowds drawn to the tool demonstrations and cheers coming from the competition ring. During happy hour, everyone milled about with a drink and appetizer in their hands. Exhibitors had a great time and left with exactly what they came for – the opportunity to showcase their products and make meaningful connections. Our BIG SHOTS Competition was a rather last-minute idea, quickly put together by an ambitious team and executed with bated breath as we wondered, “Would it flop?” It did NOT flop! In fact, I would say the contest occupied what would become the most exciting corner of the room! Attendees from six to 76 years old tried their hand at the virtual paint booths and welding machine, while most left the seam sealer application and estimate writing to the pros (and semi-pros). Competition was buzzing, and winners cheered when their names were announced. We began making plans to go bigger next year before this year’s event came to a close. The classes were amazing, and the product displays looked incredible. But the best connections were made in the hallways, during the after-party and in small groups. New ABAT members
received introductions to Board members, and old friends reunited unexpectedly. I saw people I hadn’t seen in 15 years – since my wheel-delivering days! These are Jill Tuggle the reasons we smile while thinking about ABAT Executive Director an event; the opportunity to connect with one another makes all the difference. Many events have gone virtual over the last 18 months, and some folks believe that events will continue to stay that way even after the pandemic is completely in the rear-view mirror. People ask, “Why spend all that time and money when it can be done virtually?” Well, just because it can be done doesn’t mean it should. My opinion is that the virtual world creates lazy, keyboard-warring YouTube experts. You know, like the ones who tell us, “My book says you’re doing it wrong.” Well, we all know that nothing can replace hands-on experience. And that goes for a skilled trade as well as human interaction. It takes a sincere effort not to fall into that snare. I believe the most important thing to come from the Texas Auto Body Trade Show was a renewed human connection. The products of a virtual world have been knocking at the door for quite some time, but they barreled through in 2020. I’ll offer you the same advice we give to kids who play too many video games: Go outside and play in the real world! I want to continue to encourage you to step out of the office and attend events, network with your peers and take the time to show up. You don’t want to miss what can only happen in the hallways with industry leaders and peers.
6 October 2021 Texas Automotive
jill@abat.com
TXA
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 7 October 2021 Texas Automotive
Editor’s Message
Thank You and Goodbye
A
Joel Gausten Editor
After 21 years covering the automotive industry on a full-time basis, I have made the difficult decision to move on from my role as editor of Texas Automotive. Way back in 2000, Greco Publishing hired me right out of college and put me in charge of running several automotive trade publications. At the time, I was new to the inner workings of the collision repair industry; I couldn’t even change a tire! Thankfully, Tom Greco saw something in me and gave me a shot. Since I was not an industry expert by any means back then, I figured the easiest way to learn about the auto body world would be to focus on its people. Every person I encountered had a story to tell, and I soon discovered that the collision repair industry is comprised of dedicated professionals who deeply care about doing the right thing and protecting their customers. It was inspiring to see so many volunteers taking time away from their businesses to improve the profession. My experiences in automotive journalism grew to new heights in 2018 when Greco Publishing partnered with ABAT to create Texas Automotive. Since our very first issue, the members of the ABAT community have been everything I hoped they would be: Friendly, approachable, dedicated to their craft and incredibly warm and welcoming. There’s no pretense with y’all – what you see is what you get, and I love and respect that so much. I’m immensely honored to have had the privilege of working with so many of you over the past three years. There are several people from the Texas collision repair industry who made my experience with Texas Automotive particularly unforgettable. I could easily fill this magazine with names, but since I’d run out of space before getting to the end of that list, here are a few folks who’ve really made it a great run: Burl Richards, Jill Tuggle, Robert McDorman (the most passionate defender of consumers’ rights I’ve ever known), Ozzy Osburn, Larry Cernosek, Greg Luther, John Kopriva, Manuel Rubio, Eric McKenzie, Chad Kiffe and Chad Neal.
About my picture in this message: When Burl and Jill asked me to make sure I was there to cover and photograph the awards ceremony at the end of this year’s Texas Auto Body Trade Show, I had no way of knowing or suspecting that part of it was for me. They presented me with that amazing Stetson hat – which Burl called “The Man in Black Award” – for my years of service covering ABAT and the industry it supports. It was unexpected and truly touching to hear the applause from so many of you; I’ll always remember that moment. Thank you! (And for the record, I wore that hat on the plane ride back and have donned it on more than one occasion since returning home – I love it!) Naturally, my 21 years in this industry would not have been possible without my second family at Greco Publishing. Throughout this fast-paced job of mine, Tom Greco has remained a man of quiet strength and guidance, always inspiring me to shine and grow through his trust, support and peerless generosity. I’m lucky to have built my career with him. I was also fortunate to have such a fantastic co-worker and sounding board in Alicia Figurelli; her natural ability to find a sense of calm and good humor in tough times has set a bar for me that I’ll always strive to reach. It was great fun working with former Art Director Lea Velocci for nearly 20 years, and it’s been a joy working with Alana Bonillo, Joe Greco and Donna Greco in more recent times. Also, I’d like to welcome Chasidy Rae Sisk to the Greco Publishing family in her role as managing editor. ABAT will be in good hands moving forward, thanks to her talent, drive and vast experience in the auto body world. Lastly, I’d like to thank the members of ABAT for welcoming me into your world and giving me the opportunity to be your voice every month. You’re among the finest people I’ve had the pleasure of knowing. TXA
8 October 2021 Texas Automotive
Let talent shine.
BASF’s Vision+ Educational Expertise provides tailored solutions to customers from a wide variety of V+ University and V+ Technical University courses. Offered at over 24 locations across North America, BASF is constantly developing new content in OEM training, eLearning and more to keep our customers first-class. BASF AUTOMOTIVE REFINISH COATINGS
™ basfrefinish.com
Local News
by Chasidy Rae Sisk
Collision Pros Share Entry-Level Insights with UTI Students Engaging the future generation of collision repairers is vital for the industry’s sustainability, but it requires investing time and energy into talking to students about the opportunities available after graduation. That’s exactly why Adan Ibarra (Leading Edge Collision; Houston) and Robbie Saladino (I-CAR; South Central region) recently volunteered to address the collision repair and refinish technology students at Universal Technical Institute (UTI) in Houston. The pair offered insights into starting an entry-level career to over
Robbie Saladino (far right) and Adan Ibarra (second from right) pose with UTI students during the training event. (Photo by Meagan Cantrell; courtesy of UTI)
160 students. They also conducted mock interviews, allowing students to practice how they should interact with a potential employer. Ibarra, a 2002 UTI graduate, got involved after realizing that most of his classmates had left the industry. “Only four of us have continued in the industry. That’s a big problem, partially caused by the fact that the expectations held by both students and shop management are not realistic – students must be willing to start at the bottom and work their way up, and shop owners should realize that students don’t know all the tricks of the trade as soon as they graduate. Shops typically toss students to the wolves, causing the new technician to get discouraged and leave the industry.” Conducting mock interviews allowed Ibarra and Saladino to emphasize the importance of networking to the students. “We wanted to help students
10 October 2021 Texas Automotive
understand what to expect when they go into an interview,” Saladino shares. “During a mock interview with Adan, he told me there were no job openings, so I asked him to consider me for future positions and also requested permission to visit his shop occasionally to discuss industry-related issues. I explained to the students that networking and making the connection would be considered a ‘win’ because getting to know industry leaders gives them a chance to remember the student.” “Adan and Robbie’s great message was very well-received by our students and instructors,” UTI collision repair instructor Keith Schieffer says. “They provided our students with a better concept of what to expect at an interview and also on the first day of the job. We look forward to similar events in the future because interacting with the industry helps maintain students’ interest in the industry.” TXA
News From Greco Publishing
Thomas Greco Publishing Names Chasidy Rae Sisk as Managing Editor Thomas Greco Publishing Inc. (TGP) is proud to announce that Chasidy Rae Sisk has joined its publishing team in the role of managing editor. Sisk brings nearly 15 years of professional writing and editing experience to her new position. For the past decade, she has written almost exclusively for the automotive and collision repair industries, producing content and materials for various magazines, organizations, websites and trade associations. Sisk’s articles have been printed in multiple industry publications, including BodyShop Business, AutoInc., Fixed Ops Magazine and Autobody News. “We are absolutely thrilled to have Chasidy coming on board,” TGP President Thomas Greco says. “She is one of only a handful of people who have the talent, experience and knowledge of writing and managing collision repair trade publications. We feel we have set a high standard over the last three decades, and we are certain Chasidy will help us maintain that.”
As managing editor, Sisk will assist in overseeing editorial operations for the production of the monthly print and digital magazines. She will manage the team of reporters and coordinate with the sales and marketing teams at TGP. Sisk possesses a B.A. in English from the University of Delaware. She is also an active member of the Women’s Industry Network (WIN). Sisk is “excited to continue learning about and writing for this exciting industry. I fell in love with writing about automotive and collision during my first interview in 2011, and I’m looking forward to seeing everybody in person at upcoming events. I’m honored to have the opportunity to join the TGP family.” TXA
CALL THE TOYOTA SERVICE GUYS! 8400 Research Boulevard • Austin, TX 78758
Direct: (512) 421-8504 Direct: (512) 458-3300
MILLION DOLLAR INVENTORY! Receive an Additional
5% OFF
YOUR NEXT MECHANICAL PARTS ORDER WITH OFFER CODE
WE OFFER WHOLESALE PRICE MATCHING ON MOST PARTS!
MAUND
wes_newman@charlesmaundtoyota.com
SAME DAY ADAS CALIBRATIONS 11 October 2021 Texas Automotive
Show Highlights 2021
The Best of the Best: BIG SHOTS Take Center Stage There Are BIG SHOTS in Texas This year’s Texas Auto Body Trade Show boasted an event like no other: The first-ever presentation of the BIG SHOTS Awards! On September 18, members of the ABAT community participated in a special BIG SHOTS Competition (officially rechristened “The ABAT Olympics,” beginning with next year’s Trade Show) at the Exhibit Hall Stage at the Irving Convention Center. Throughout the afternoon, aspiring Big Shots competed for prizes and glory in virtual painting (which included an additional ASE test), auto body and estimating contests. At the beginning of the awards ceremony, ABAT President Burl Richards explained that the contest was created to inspire greater Trade Show attendance from shop personnel. “We have great participation from our vendors and managers, owners and estimators, but we need more technicians. This is all about getting folks here who can learn something from the Trade Show and get great information.” Estimating was divided into two categories: An “express” estimate written using CCC software and a more extensive estimate judged by Mike Anderson of Collision Advice. The latter tested competitors on their ability to write an estimate for a right panel replacement on
a 2019 Toyota Camry. Judging criteria included the ability to write line notes, identify not-included items and include OEM repair procedures. The winning estimate had more than 290 lines; however, it was not the most expensive estimate written during the competition. Although some estimates were higher in price, they missed the top spot due to a lack of line notes and safety-related items. Congratulations to the following BIG SHOTS Competition winners! Painter First Place: Jose Jovel (Helfman Dodge; Houston) Second Place: Joel Garcia, Sr. (Collision Masters; Palmview) Third Place: JD Thomas (Burl’s Collision Center; Henderson) Auto Body First Place: Ellis Taylor (Carr’s Corvettes and Customs; Plano) Second Place: Jose Jovel (Helfman Dodge; Houston) Third Place: Brian Buczynski (Park Place Dealerships; Dallas) Mike Anderson Estimate Brian Buczynski (Park Place Dealerships; Dallas)
14 OCTOBER 2021 Texas Automotive
CCC ONE Express Estimate Davis Richards (Park Place Dealerships; Dallas) ABAT thanks the following Big Shot Competition sponsors for making this event possible: Sherwin-Williams, CCC, AkzoNobel, 3M, Innovative Collision Equipment, KECO Body Repair Products and Norton/Saint-Gobain. Special thanks to Park Place BodyWerks (Dallas) and the Mercedes-Benz Training Center (DallasFort Worth) for donating equipment used in the competition.
Hegarty Wins Bobby Walker Memorial Scholarship The awards ceremony concluded with the presentation of the Bobby Walker Memorial Scholarship to Jonathan Hegarty of Technology, Exploration & Career Center West (Lewisville). Named in honor of late Vale Training instructor Bobby Walker, the scholarship allows a student to further their industry education by attending Vale estimating classes. Teddy Haynes of Vale Training conferred the honor upon Hegarty.
by Joel Gausten
The Industry’s Bad Estimate Pandemic
A Dose of Reality: Calibrations Today and Tomorrow
One of the industry’s most beloved speakers and educators, Mike Anderson of Collision Advice hit the Texas Auto Body Trade Show stage to share a critical message with the packed room of repair professionals who gathered to hear his September 17 “State of the Industry” presentation: “We’ve got a pandemic going on in our industry, and it’s not COVID-19. You know what that pandemic is? Uneducated estimators – for insurance companies and body shops – writing estimates for unsafe repairs.” In Anderson’s mind, poor estimates often result from shop personnel failing to take the time necessary to capture everything needed to perform a professional repair. As an example, he shared his experience researching what went into writing a proper estimate to replace a quarter panel on a 2019 Toyota Camry. The complete OEM information for this operation ended up including 98 procedures, spread over 490 pages. Anderson explained that, according to Google, it takes the average person four to five minutes to read a one-page technician document. That means it would take the average technician around 40 hours and 50 minutes to read the OEM information needed to write an estimate for this job. “Do we believe that people are taking 40 hours and 50 minutes to review the OEM repair procedures? No.” In addition to providing his “State of the Industry” update, Anderson educated and entertained Trade Show attendees by moderating a special “Calibration Panel Discussion” on September 18 and presenting two courses, “Repair Planning Using the DEG and OEM Owner’s Manuals to Earn the Vehicle Owner’s Trust” and “It’s Not Just about DTCs.” The latter class featured co-presenter Jake Rodenroth, formerly of asTech.
Vehicle calibrations are poised to revolutionize the world of automotive repair. As a way to help Texas Auto Body Trade Show attendees better navigate this trend, ABAT assembled a panel of subject matter experts for a deep dive into this all-important – and often misunderstood – topic. First and foremost, collision repair professionals need to embrace the fact that calibrations will continue to dominate much of the industry’s attention. “Calibration is going to be a $1 billion business by 2025 and a $15 billion business by 2030,” panelist Frank Terlep (Auto Techcelerators, LLC) said. “It’s not going away.” “You’d be surprised by the things you have to calibrate,” Jake Rodenroth (formerly of asTech) added. “I currently drive a motorcycle; you have to calibrate the wheels when you change the tires. As we move to electric vehicles, you’ll have to calibrate suspension systems and cooling systems. The advice I could give you is ‘don’t assume you know it;’ look up even the simplest things.” Shops that elect to perform calibrations in-house are obliged to follow precise OEM guidelines – including a host of precautions that may come as a surprise to even the most experienced technicians. For example, a full tank of gas or a cluttered trunk could each have a massive impact on a calibration procedure. Various panelists cautioned that this high level of attention to OEM procedures doesn’t go away if a facility decides to pass calibrations along to a sublet provider. “If you’re outsourcing your calibrations, you should be educating your third party on what they should be doing for you,” Terlep advised. “You should be documenting your repairs, including your calibrations, as if you’re going to court tomorrow.” “Even if you sublet it to someone else to do the calibration, I still think you should pull the procedure and provide it to whoever you’re subletting it to,” Anderson added. Nick Dominato (asTech) shared his thoughts on the differences between OEM and aftermarket systems in the calibrations arena. “We’ve seen some aftermarkets start playing around with target sizes, and we’ve seen what happens when you shrink targets and change the height and distance requirements – it’s generally been a disaster.” “Understand the capabilities of the systems and setups you’re using prior to making your decision to actually use it and make the investment,” panelist Eric Newell (AirPro Diagnostics) added.
15 OCTOBER 2021 Texas Automotive
Show Highlights 2021 Exhibitors Speak! Companies Reflect on an Unforgettable TEXAS AUTO BODY TRADE Show “Phenomenal!” That was how Larry Pechacek of Texas Auto Body Trade Show Diamond & Happy Hour Sponsor BASF described how things were going on the floor during ABAT’s first in-person show since 2019. “With our Mobile Training Center, we’ve had more traffic than we’ve ever had. I’m going to say this is the best show we’ve ever done!” Pechacek wasn’t alone in his assessment. A simple walk-through of the exhibition hall at the Irving Convention Center quickly revealed the ABAT community’s delight to see the show’s return. “The traffic has been good; everybody’s here for the right reasons,” Ruston Blanchard of FindPigtails.com shared between conversations with attendees. “It seems that they’re all very interested, and doing so many more classes has been a big advantage.” “People in our industry have been wanting an event like this to get some on-hands, face-toface engagement, so this year’s show has been very positive and productive,” Will Godina of Happy Hour/Big Shots Sponsor SherwinWilliams added. “We’re happy with the foot traffic; the show has gone over very well this year.” Keith Egan of Betag Innovation spent the weekend awed by the action hitting his booth. “I’m blown away! I really think ABAT has done a great job of bringing people and content. We’ve been busy, and it’s really been fun.” “This year has been significantly better than the previous show,” Brock Birky of KECO Body Repair Products commented. “The structure, with education and vendors being separate now, really helped us. Now, people have more time to stop by our booth. That makes it a lot more valuable to us.” Although the lingering realities of COVID19 had at least some impact on attendance, this didn’t faze Tim Curran of veteran Texas Auto
Body Trade Show exhibitor Car-O-Liner SW. “Attendance is lower, but the dedication to the product is the same. There may be fewer people, but those people who are coming aren’t necessarily tire kickers or shoppers – they’re buyers. That’s what we expected.” “It seems like people are more excited as they come through; I think that’s due to not being able to get out,” observed James Tucker of English Color & Supply, which sponsored this year’s Car Show, held during the main event. “They’ve loved everything we’ve had on display, and it’s been one of the better shows we’ve had.” ABAT Board member Chad Neal, owner of Innovative Collision Equipment, shared a similar opinion of what the association provided to participating vendors: “The reception has been good – the people who’ve been here have been motivated to learn and understand what’s going on. Everybody’s tired of this whole non-in-person Zoom stuff. We just need to get back, move on with our lives, move forward as an industry, learn from each other and get better at what we do.” For Eco-Tech Systems, LLC President Chris Curran, being a part of this year’s show resulted in enough good leads to make the trip a worthwhile investment of time and resources. “There’s been a much bigger turnout this time. We’ve seen a lot more customers and a lot more body shops this year, and they’ve been impressed with everything they’ve seen out here.”
“The show has been very positive; I let ABAT know that we’re very happy about being here. It’s been a good crowd and a quality crowd,” noted a visibly pleased David Willett of ProSight Specialty Insurance. “We’re really encouraged by how productive it’s been for our company to be here.” Away from the show floor, attendees took in more than a dozen classes presented by a who’s who of industry experts: Mike Anderson (Collision Advice); Nick Dominato (adasThink); Mark Olson (VECO Experts); Robert L. McDorman (Auto Claim Specialists); Chris White and Brock Birky (KECO Products); Keith Egan (Betag Innovation); Frank Terlep (Auto Techcelerators, LLC); Jake Rodenroth; Pete Tagliapietra (NuGen IT); Eric Newell (AirPro Diagnostics); Greg Burkhardt and Gabriel Morley (VeriFacts Automotive); and Mark Claypool (Optima Automotive). The 2021 Texas Auto Body Trade Show was made possible through the support of the following sponsors: Diamond & Happy Hour Sponsor: BASF; Premier Education Sponsor: Axalta Coating Systems; Platinum/ Happy Hour/Car Show Sponsor: English Color & Supply, Inc.; Gold Sponsor: Kritech; Silver Sponsors: FinishMaster Automotive Paint, NCS/Single Source, Inc., PartsTrader, PPG; Silver/Big Shots Sponsor: AkzoNobel, Norton/Saint-Gobain; Education Sponsor: VeriFacts Automotive; Happy Hour/Big Shots Sponsors: Innovative Collision Equipment (ICE), Sherwin-Williams; Big Shots Sponsor: 3M, CCC Information Systems, KECO Body Repair Products; Happy Hour Sponsors: AAMS, LLC, AirPro Diagnostics, Car-O-Liner SW, Solera | Audatex; Corporate Sponsors: 360 Paint & Recon Supply, IPAC - Ingram Park Auto Center.
A Bitchin’ Chat with Dave Kindig Thanks to AkzoNobel, the Texas Auto Body Trade Show received a dose of star power when Dave Kindig of the MotorTrend TV show Bitchin’ Rides made a guest appearance to share stories from his automotive career, discuss some of his most famous builds, chat with attendees and later sign autographs at the AkzoNobel booth. When asked by Texas Automotive to discuss how his shop (Kindig It Designs; Salt Lake City, UT) was most impacted by COVID-19, Kindig immediately pointed to an all-toocommon dilemma: Finding enough
employees to handle the work. “The employee section has the upper hand. That’s fine; they should have control over their own lives, I don’t disagree with that, but at the same time, we need to find some kind of a reason for employees to be happy about coming back to work again. There’s nothing that makes any sense as to why we’re all struggling to find employees to fill those positions.” To help reverse this trend, Kindig is currently working with the Lincoln Technician Institute in Denver to develop a new program to attract and train skilled labor in the hot rod building industry. Information on Bitchin’ Rides can be found at kindigit.com/show.
16 October 2021 Texas Automotive
17 October 2021 Texas Automotive
Show Highlights 2021 Why the Right to Appraisal Matters During “Balls and Strikes” – one the best-attended courses during the 2021 Texas Auto Body Trade Show – Mark Olson of VECO Experts and ABAT Board member Robert L. McDorman (Auto Claim Specialists) guided attendees through various aspects of the Right to Appraisal, commonly known as the Appraisal Clause. Under general “Appraisal Clause” or “Right to Appraisal” provisions found in most auto insurance policies, if an insurer and a policyholder disagree on the amount of loss the insurer is willing to pay to settle a claim, either side can demand an appraisal of the loss. Each party selects a competent, impartial appraiser. An umpire reviews the actual case value and amount of loss submitted by both parties and reaches a binding decision on the amount of loss. Each party pays its chosen appraiser and bears the expense of the umpire equally. As regular readers of Texas Automotive have learned through McDorman’s monthly “Ask the Expert” feature, the Appraisal Clause is a powerful
consumer-protection tool regularly used by policyholders to address vehicle valuation disputes with insurers. As explained in the presentation, erroneously low valuations often result in vehicles being deemed total losses when they could have been economically and safely repaired. In addition to depriving collision repair facilities of possible work, this practice can have an adverse effect on the motoring public. “The policyholder is affected by being under-indemnified,” McDorman said. Olson argued that some low valuations are the result of endusers obtaining information from estimating systems that have outdated databases. “You go, ‘Oh, [the vehicle’s] gone,’ but it may not be, even though your computer says it is.” Additionally, he noted that the Appraisal Clause enables insurers and consumers to place the ultimate decision over the dispute into the hands of an impartial third party. “As an umpire, it’s not your personal opinion. It’s whatever the facts are, and you’ve got to call it the way it is.”
18 OCTOBER 2021 Texas Automotive
Fair settlements through knowledge and negotiation! We are experienced in negotiating claims with insurance companies. We have teamed up with Vehicle Value Experts for access to the best vehicle valuing tool available. Together, with the best knowledge and the best negotiating skills, we can ensure a fair settlement on your auto claim.
No One Else Comes Close to our Total Loss Value Assessment! Contact us from anywhere in the U.S. to have a local Auto Claim Specialist working for you! WE SUPPORT
771 East Southlake Blvd. Southlake, TX 76092 817-756-5482 Fax: 866-550-0484 Toll Free: 800-736-6816 claims@autoclaimspecialists.com
• Over 25 years of front line skilled knowledge & hands-on practical experience involving automotive mechanical repair
MEMBER
• Licensed Public Insurance Adjuster Agency with a duty to act on your behalf!
Insurance Automobile Claim Mediator • Insurance Appraisal Clause Umpire
Vehicle Value Experts is a unique Consultant Firm
that specializes in Insurance Total Loss Market Evaluation Reports; Mechanical and Body Shop Estimates and Finalized Motor Vehicle Repair Evaluations; Diminished Value Assessment and Claims as such and Motor Vehicle Fair Market Value Reports. 19 October 2021 Texas Automotive
Founder Robert McDorman
Ask The Expert How Can Shops Ensure Proper Indemnification When an Appraisal Is Denied Unlawfully? Dear Mr. McDorman: I own and operate a collision facility in East Texas. I attended your presentation at ABAT’s Texas Auto Body Trade Show. Over the past few months, I have also read several articles about Auto Claim Specialists successfully convincing the insurance carrier through the judicial process to reverse the’ total loss decisions for vehicles that can be safely repaired after all other means had failed. Over the years, you have helped many of our clients resolve loss disputes with their insurance carriers, but this is the first I’ve heard about these types of significant court settlements. I am certain that many other collision facilities also routinely deal with their clients being under-indemnified and harmed by their insurance carrier’s unlawful behavior. Can you explain to the readers how this process works and help us understand the path to proper indemnification when an appraisal is unlawfully denied? Finally, what is the largest settlement you have seen the court award a client for their carriers’ unlawful actions toward their insured? Thank you for referring your clients to us over the years and for asking these excellent questions. Let me begin by explaining to readers that the key defense for protecting insurance policyholders’ contractual right of indemnification is their policy’s Appraisal Clause. When the insured utilizes the Appraisal Clause in their policy, it removes the inexperienced (and biased) carrier appraisers and claims handlers from the process; this undermines many of the insurer’s tricks, which are designed to undervalue the loss settlement and under-indemnify the insured. Through the Appraisal Clause, experienced, independent third-party appraisers (who are not biased towards the insurer) help resolve loss disputes relatively quickly, economically, equitably and amicably – as opposed to relying on more costly and time-consuming methods, such as mediation, arbitration and litigation. At Auto Claim Specialists, as a licensed public insurance adjuster agency, our business model includes holding the primary carrier accountable for the insured’s policy rights and the indemnification of their covered loss. Being public insurance adjusters gives us the right to offer insurance-related advice equivalent to that of lawyers (though only for property claims) and to step into our clients’ shoes. We also recommend that customers hire Vehicle Value Experts as their appraiser. Once the insured retains Auto Claim Specialists as their public insurance adjuster and Vehicle Value Experts as their independent, third-party appraiser, we place the insured’s carrier on notice, informing them that our client is invoking their policy’s Right to Appraisal Clause in contest of the loss. The insured or the insurer can invoke this clause; once invoked by either party, it becomes a contractual obligation. Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. Robert can be reached at (800) 736-6816, (817) 756-5482 or via email at AskTheExpert@autoclaimspecialists.com.
When insurance carriers violate their insured’s policy rights to relief by refusing demands for an appraisal, there are now proven remedies to help make the insured whole again through the court system. Typically, we see significant damage awards allotted to the consumer due to their carrier’s bad behavior. These consequential damage awards routinely average over $30,000 for the insurer ignoring or denying our many notices invoking appraisal – often for disputes that could have settled for less than one-tenth of that amount. For appraisal demands that are not denied outright, our standard procedure is to post six notices before sending a seventh and final 10-day notice. Thus, we give the insurers every opportunity to do the right thing and appoint a third-party appraiser to represent the insurance company. Although going to court has proven highly effective, we still want to use it as a last resort to achieve proper indemnification. As for your question about the largest court award our clients have received, the court recently awarded our client $10,000 in consequential damages and $100,000 in punitive damages for both the insured and co-insured. This default judgment began with the unlawful carrier ignoring our appraisal notices and subsequently ignoring the judicial process for our client’s rights. This dispute could have been amicably resolved for a small fraction of that amount through the Right of Appraisal if the carrier had simply participated; however, the unlawful carrier now has a $220,000 default judgment (plus attorney fees) to deal with. Once a carrier ignores or denies the public insurance adjuster’s appraisal demands, these violations become contractual events of default for the unlawful carrier. Now, there is a track record of the judicial system punishing the unlawful carrier who harms their policyholders by ignoring or denying their policy right to relief. Auto owners purchase insurance in order to be fully indemnified if they suffer an accidental loss. Indemnification means placing an insured in the same financial position after a covered loss event as they were in prior to the event. Should the insured’s insurance carrier underindemnify their loss, the Appraisal Clause is the policyholder’s key
20 OCTOBER October 2021 Texas Automotive
by Robert L. McDorman
defense to protect their contractual right of indemnification. The spirit of the Appraisal Clause is to resolve loss disputes fairly in a timely and cost-effective manner. It is unfortunate when uncaring or pigheaded insurance carriers don’t give it the respect it deserves. As shown in my reply to your questions, that decision can also be very costly for the carrier. Some have finally taken notice and now routinely participate in appraisal demands, but others remain remarkably obstinate. 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 by an average of 90 percent on repair procedure disputes. These under-indemnification percentages are staggering and harmful to Texas citizens. 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
The 300 Advantage™ Providing real-time intelligence before, during, and after a hail storm
Our network of local partners allows us to scale to any sized hail event. Our technology provides real-time visibility and performance measurements to keep business moving. Our people and repair management systems ensure the least amount of business disruption as possible. Our business model protects our clients’ core business within auto dealerships, body shops, fleet companies, and insurers alike.
But don’t just take our word for it... CALL 636-734-5470 EMAIL ryan@the300advantage.com To learn more!
21 October 2021 Texas Automotive
Change your perspective. Spanesi’s Interactive Week is coming October 25 - 29, 2021.
Stay Tuned
Spanesi Americas, Inc. 123 Ambassador Dr. STE 107 Naperville, IL 60540
224-SPANESI (224-772-6374) www.spanesi-americas.com facebook.com/spanesiamericas
22 October 2021 Texas Automotive
VIBRANCY, VALUE AND VERSATILITY Achieve it all with Valspar Refinish Valspar Refinish combines best performance with best value, from primer to clear. With this solvent system, you will achieve color consistency, great coverage and hiding, and an overall quality finish—every time.
A brand by
ValsparRefinish.com
