Winter 2020
UNITED AND FOCUSED:
An Industry Roundtable Discussion
WA C TA L M e m b e r
SPOTLIGHT
Lyden Auto Body
2020 WACTAL BOARD of DIRECTORS President Larry Terrien, MJ Collision Center larry@mjcollisioncenter.com Vice President Mark Williams, Williams Auto Body mark@williamsautobody.com
Winter 2020
Vol. 7, Number 2
CONTENTS
Secretary Ronnie Goss, Goss Auto Body, Inc. ronnie@gossautobody.com Treasurer Sue Black, Dean’s Auto Body suzieq@deansautobody.com Directors Eileen Haberman, Glen's Auto Body, Inc. Ken Kempfer, Fox Valley Technical College Michael Taylor, Zimbrick ChevroletSun Prairie Tracy Black, Dean’s Auto Body, Inc. Association Administration Sue Peterson info@wactal.com (800) 366-9472 Lobbyist Jolene Plautz jplautz@aol.com
COVER STORY ..............................................................10 by Joel Gausten
UNITED AND FOCUSED: An Industry Roundtable Discussion
PRESIDENT’S MESSAGE..............................................................4 The Ethical Revolution in the Collision Industry by Larry Terrien BUSINESS INSURANCE SAVINGS FOR WACTAL MEMBERS ........................8
CELEBRATING 30 YEARS PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 ADVERTISING: 973-667-6922 • alicia@grecopublishing.com PUBLISHER Thomas Greco (thomas@grecopublishing.com) SALES DIRECTOR Alicia Figurelli (alicia@grecopublishing.com) GRAPHIC DESIGNER Lisa M. Cuthbert (lisa@grecopublishing.com) EDITORIAL DIRECTOR Joel Gausten (joel@grecopublishing.com) EDITORIAL / CREATIVE COORDINATOR Alana Bonillo (alana@grecopublishing.com) OFFICE MANAGER Donna Greco (donna@grecopublishing.com) www.grecopublishing.com Wisconsin Automotive News is published quarterly by Thomas Greco Publishing, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of Wisconsin Automotive News are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of Thomas Greco Publishing, Inc. or of WACTAL. Copyright © 2020 by Thomas Greco Publishing, Inc. Cover image © www.istockphoto.com.
WACTAL MEMBER PROFILE ........................................................14 by Alana Bonillo
Lyden Auto Body
WACTAL MEMBERSHIP APPLICATION..............................................16 OFFICE DEPOT SAVINGS FOR WACTAL MEMBERS................................17 -ADVERTISER’S INDEX AkzoNobel..............................................7
Morrison’s Auto Parts............................13
American Honda Motor Co. ................IBC
PAM’s Auto ............................................9
Axalta Coating Systems ......................IFC
Reliable Automotive Equipment..........OBC
Body Shop Supply Co. ........................6
Sherwin-Williams ..................................5
Buerkle Hyundai....................................9
Straight and Square..............................18
Dentsmart ..............................................4
Zorn Compressor & Equipment..........18 Winter 2020
Wisconsin Automotive News
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PRESIDENT’S MESSAGE
The Ethical Revolution in the Collision Industry I recently read an article in Auto Body Repair News entitled, “Leading the Ethical Revolution in the Collision Industry” by Stacy Phillips. The article stressed the human element in the repairs we do and why it’s important to keep the people riding in the vehicles we repair at the forefront of all our decisions. It stressed the importance of placing the value of human life at the top of everything we do. I thought about this during our last WACTAL meeting. There was a lot of discussion about insurance companies telling shops where to source parts, not paying for scans and other required procedures, etc. When these types of issues arise, are we keeping the people who ride in the vehicles we repair at the forefront of our decisions? It is very easy to blame some other segment of the industry when, in reality, it is our own fault. We need to remember who the owner of our business is, and who is ultimately responsible for the liability of the repairs that we perform. We need to stop letting an outside party dictate how to repair a vehicle, what parts
should be used, if it needs a scan or not, or how long repairs should take. Ask yourself if you are doing absolutely the best job you can on every vehicle. Are you always researching and following OEM repair procedures? Are your technicians trained and up to date on the latest repair techniques and procedures? Are your technicians on board with the highest ethical standards? Are you documenting each and every repair? Are you using inferior parts or omitting necessary procedures because “that’s all the insurance company will pay for?” Remember who your customer is! The vehicle owner (and all future owners) will live with the consequences of the repairs that you make for the life of the vehicle. Are you ready and willing to accept this responsibility? Larry Terrien WACTAL President WAN
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Contact Wisconsin Automotive News Sales Director Alicia Figurelli
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Winter 2020
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Winter 2020
Winter 2020
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United and Focused: COVER STORY by Joel Gausten
An Industry Roundtable Discussion Burl Richards
Larry Terrien
Torchy Chandler
W
hy join a collision repair or mechanical association? What are the major goals these groups aim to accomplish? How can members make the most out of their dues? Where is the industry going from here? To find answers to these questions, we sat down with WACTAL President Larry Terrien, Auto Body Association of Texas (ABAT) President Burl Richards, Washington Metropolitan Auto Body Association (WMABA) President Torchy Chandler, Alliance of Automotive Service Providers of Massachusetts (AASP/MA) President Molly Brodeur, Alliance of Automotive Service Providers of New Jersey (AASP/NJ) President Jerry McNee and Alliance of Automotive Service Providers of Minnesota (AASP-MN) President Carl Thomas for a frank and in-depth discussion on what they each see as the biggest problems facing the field and how being involved in a state group can improve conditions for everyone. Wisconsin Automotive News: What is the primary focus of your association on behalf of your membership?
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Wisconsin Automotive News
Larry Terrien: Our mission is to help provide a future for the collision repair industry. We do this by providing many member benefits, such as business insurance, a personal concierge program that directs customers to member shops, several retail discount programs, credit card processing, web design/hosting, a customer service survey [CSS] program, consumer brochures/signage, conferences/trade shows, a scholarship program and lobbying efforts. Burl Richards: Education is the first thing that comes to mind. We do that on various levels. We educate shops by providing them with industry leaders and OEM information and stress the need for proper and safe repairs. I believe that if they do that, it takes care of a lot of our industry’s issues. If every shop was looking up all the OEM procedures and focusing on fixing the vehicle properly, this industry would change overnight. They would find out quickly that fixing a car properly takes a large investment. All of these shops that supposedly don’t ask for processes and procedures would have a different outlook and attitude. Secondly, we educate
Winter 2020
legislators on the issues we’re dealing with. Of course, we can’t have any success with that unless we’re also educating the consumer. Torchy Chandler: The main objectives for WMABA are preventative advocacy, educating our members and industry at large and disseminating priority or actionable information. We keep on top of local legislative and regulatory discussions and work alongside our affiliate associations on initiatives that benefit the entire industry. Molly Brodeur: Our primary focus is education. Whether it be estimating tips and tools, negotiation skills, the technology evolution or total loss settlements, we are constantly adding to our members’ wheelhouse so they can effect change in their businesses. Jerry McNee: Support, education, collaboration and sharing information. There is definitely strength in numbers, and we achieve that through the training programs that we sponsor and put together, among other things. We give back to the industry. At the end of the
Molly Brodeur
Carl Thomas
Jerry McNee
day, we all volunteer to look out for the good of our community and our customers. Without AASP/NJ, we wouldn’t fare as well as an industry.
‘This insurance company is refusing to pay for this.’ Members are looking for help with how to deal with this and other problems.
lack of people getting involved in the industry. Addressing that will be the biggest thing for the sustainability and success of our businesses.
Carl Thomas: Our primary focus is all about providing the best possible outcome for businesses, whether they are collision repair or mechanical. We’re here to ensure the success, profitability and longevity of our industry.
TC: Insurer relations issues come up weekly, if not daily. We assist with useful information or contacts at higherthan-local levels. Many times, this will also involve the consumer. There are changes in technology for vehicles that happen daily, and helping repairers stay on top of that is a high priority. Helping to offset the cost of doing business is also a focus of ours, and utilizing benefit programs is one way our shops can take advantage of their membership.
WAN: In a perfect world, how would you and your association define an appropriate shop/insurer relationship?
WAN: What are some of the biggest issues impacting your members at the state level, and how has your association worked to identify and address them? LT: One of our most recent efforts was successfully passing legislation that specifically allows us to replace information labels on vehicles that contain the VIN. Before this legislation, this was a grey area that was sporadically enforced by law enforcement depending on their interpretation of the existing statutes. BR: Quite honestly, under-indemnification by insurers for safe and proper repairs is the biggest issue. Unfortunately, it’s all based on the ‘prevailing’ rate because of the language in the insurance policies. The Texas Department of Insurance won’t follow up and do its job. This leads to the fact that we need specific legislation that identifies that issue. The shops that are trying to get things done are being under-indemnified. I get calls all the time from members who say,
MB: The biggest issue affecting members at the state level is the Labor Rate. With the lowest reimbursement rate in the country, our members are challenged to invest in their businesses and properly train and retain technicians. JM: We’ve tried to set up meetings with the New Jersey Motor Vehicle Commission for body shop licensing and with the New Jersey Department of Banking and Insurance, legislators and lobbyists on other issues. The insurance companies are chipping away at these entities to get what they want, so we need to be doing the same. To do this, we need more involvement from our members. CT: Staffing is the largest issue in this industry right now. Trying to find quality technicians is a struggle – which I’m sure is the case in any trade. We have a
LT: In a perfect world, both body shops and insurers would understand who their customer is and always put their interests first. Body shops would understand that it is their job to repair the vehicle to the best of their ability and that they bear 100 percent of the liability for those repairs for the life of the vehicle. Therefore, they would always use all of their knowledge and expertise and all of the resources available – OEM recommendations, position papers, etc. – to perform these repairs properly. Body shops would never allow a third party to influence how these repairs are made. Insurance companies would always understand that their only job is to compensate the shop that their customer chose for the repairs. They would understand that it is not their job to direct customers to a particular shop, source parts and dictate what parts are used, prescribe repair methods and procedures, say what they will pay for Labor Rates, parts markup, etc. or to dictate what day of the week to begin repairs and how long the job will take. BR: The shop would provide supporting documentation from the OEMs, I-CAR and the estimating database – basically
Winter 2020
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a blueprint – that outlines all necessary safe and proper repairs. The shop would repair the vehicle based on that information in addition to its expert opinion, as they are the ones liable for the repair. The insurer then indemnifies the insured or claimant and walks away. The insurance company is the bill payer, not the repair professional. Stop letting them dictate the repair. TC: An appropriate shop/insurer relationship should first and foremost put the customer/policyholder first. The shop – if negotiating repairs – is responsible for ensuring a safe and proper repair, which includes proper procedures, parts procurement and more. The insurer is responsible for making the policyholder ‘whole,’ which to us means reimbursing for that safe and proper repair while supporting industry best practices for usage of OEM recommendations or requirements. In disagreements, there should be straightforward processes for remediating the problems, including fair and transparent escalation steps. An example of that is the appraisal clause and using that for the benefit of mediation. MB: An ideal relationship would have an understanding of each other’s roles in the repair process. As the repairer, the vehicle owner is our customer, and we are charged with repairing the vehicle to pre-loss crash worthiness by utilizing our trained expertise and the proper equipment guided by the OEM repair procedures. The insurance company is obligated to indemnify their policyholder and pay for the required repairs to the vehicle. JM: Essentially, a good shop-insurer relationship would have an insurance company – especially upper management – realize they can’t condense, restrict, hold back or neglect some of the things that need to be done. Include procedures and hourly rates in that. Many shops are giving it away for free – which the insurance companies expect. We’re at a pivotal point in business where our costs are continuously increasing, yet the insurance companies are unwilling to move. There has to be an understanding between the insurer and the shop; they have to understand this can’t continue to strangle this industry.
WAN: When working to gain new members, how do you answer the question, “What does your association do for me that I can’t do on my own?” LT: When discussing the association with potential members, I always use the old adage, ‘United we stand, divided we fall.’ There is definitely strength in numbers; together, we can accomplish things that individual shops could never hope to do. For instance, WACTAL has its own lobbyist who keeps us informed on legislation that affects our industry and has been very instrumental in helping us pass several bills. One of the biggest benefits we provide is education – not only for shops through seminars, trade shows, newsletters and Wisconsin Automotive News, but also providing education for consumers through our website and helping members educate the insurance industry. We also educate legislators and the Insurance Commissioner on issues that we deal with. One other thing that gives us the power of numbers is the many member benefits that we offer. If member shops utilize these benefits and discounts, they can more than offset their cost of membership. BR: The association provides educational seminars and classes with industry experts who teach and train us on all facets of repairs, technology and latest trends, including new advanced materials and vehicle engineering. We also fight for our industry by trying to pass new legislation that will make it easier for shops to repair vehicles properly without the friction costs associated with constantly battling insurance companies for proper compensation for safe repairs. Shops need to communicate with and learn from each other. They can also carry a small part of the load by getting behind a specific issue they are passionate about, whether it be helping with legislation, education, fundraising or working with the colleges that are training new auto body technicians. There are many other important issues to get behind through the association. If everyone does their part, then everyone can contribute and take the load off the few who tend to carry the weight. TC: WMABA is present at national collision industry meetings, such as the
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Society of Collision Repair Specialists’ [SCRS] Open Board Meeting and member events, Collision Industry Conference [CIC] meetings, SEMA, AASP/NJ’s NORTHEAST® Automotive Services Show and more. We build national contacts with both vendor and insurance representatives. We have an ability to escalate industry issues and member inquiries to the highest levels. No one shop would be able to do that themselves without thousands of dollars and hours of investment. MB: Belonging to an association provides shop owners with education, training, tools and the knowledge they are not alone. When you are able to tap into the wealth of resources from not only the association but the member shop owners, you are able to make sound business decisions for your shop. ‘All for one and one for all’ is how we are going to help each other ensure vehicles are repaired properly and we are compensated for these highly skilled repairs. JM: That’s a great question. I spoke to a shop owner yesterday; he was very successful years ago, and he worked very hard to make insurers happy. He said to me, ‘The things I have to go through… What are you doing?’ I replied, ‘Have you heard of the Variable Rate Survey? Do you know about the Database Enhancement Gateway [DEG]? Are you a member of the association?’ He answered, ‘No.’ I told him, ‘You have to come out of your cave! You need to be a member and get involved.’ We’ve put on more training classes and seminars in our members’ backyards in the past 12 months than we have in years. It’s a benefit to shops to come out, listen to somebody else’s experiences and successes and share their own. You can’t sit back and cry about it; get up and do something about it. If you don’t, then you’re the problem. Don’t blame the insurer. CT: The reward programs more than pay for the membership, but the real value is in the networking. We recently had a Roundtable with 20-plus members, and not one person walked away without taking something with them and having a good time. Our Leadership Conference every April is a must-attend for anyone who is serious about this industry. WAN
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WACTAL MEMBER PROFILE by Alana Bonillo
Lyden Auto Body
T
Tomah, WI
hose in the know in and around Tomah will surely tell you that Lyden Auto Body is the shop to call when your car is in an accident. Family-owned/operated since 1987, the shop is led by brothers Mitch and Jeff Lyden. Their mother, Kate, helps steer the ship as the facility’s president. The family’s story in the automotive community began long before they opened the shop. Mitch and Jeff’s father, Paul, started working on cars at the young age of 17 back in 1952. Fresh out of school in 1979, Mitch began working with his dad, who was employed at another shop in Tomah years before the family went into business for themselves. Jeff, the youngest brother, came on board years later after spending time working in the insurance industry. Their oldest brother, Mike, works in the storm damage appraisal business in Florida. “My dad had been asked by several people why he had never gone out on his own and opened his own shop. He thought he was too old at the time, but my mom ran the numbers and convinced him that he would do really well,” shares Mitch. Paul searched and found a vacant property on the south side of Tomah that would make a good location for a body shop. Word of mouth traveled fast, and the Lydens found themselves busy with work as soon as they opened for business – and it’s been that way ever since. These days, the facility often has a two-month backlog. “My dad’s model was always, ‘Treat a vehicle as if it was yours,’” explains Jeff. “Would you want your spouse driving around in an unsafe vehicle? You have to make sure to get the vehicle back to pre-accident condition.”
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Winter 2020
Mitch and Jeff Lyden of Lyden Auto Body.
Jeff left his insurance industry job in 1999 to come on board and assist with estimating and other areas of the business when Paul took ill. Sadly, in 2009, Paul succumbed to cancer, and the two brothers and their mother continued on his legacy. Today, Kate is semi-retired, but she still does the monthly and year-end bookkeeping. “She has to play the motherly role once in a while,” teases Jeff.
Mitch is in charge of the body shop operations, while Jeff runs the office and parts ordering. The Lyden brothers have certainly seen their share of changes and challenges in this evolving industry over the years. They point to advancements in technology as the largest one, as there is so much involved nowadays to make sure vehicles are fixed properly and that all computerized systems are checked. Because Lyden Auto Body is a small shop, it outsources much of the computerized work to dealerships in the surrounding area. “Another challenge is dealing with the insurance company and trying to get paid for what you do,” states Jeff. “My estimator and I fight every day for our vehicle owners; we try to make sure we get compensation for what we do. We hear every day that we are the only ones charging for that.” As far as training goes, Lyden Auto Body has been involved with I-CAR and is working on certifications. The shop is certified with PPG Refinish and therefore partakes in all its painting training programs. Jeff keeps up with training on the estimating side via their supplier Body Shop Supply in Onalaska, which offers various training events that the shop sponsors from time to time. In addition to keeping up with training, the Lydens are certain to take all the necessary steps to make sure that
their shop meets all OSHA requirements. They swear by a company called KPA, which Mitch says has been a great help to them teaching them everything they need to know. According to the plaque on the shop’s wall, Lyden Auto Body has been a member of WACTAL since 2004; Mitch believes it may date back even longer than that. “They look out for you and try to get things passed through the Legislature,” comments Jeff. “They are very helpful and offer quite a bit of benefits to their members.” The Lydens don’t have any current plans to expand the business nor pass the torch to anyone else in the family. Right now, they have quite a few years left in them to keep going the way things are. What has ultimately kept Lyden Auto Body going in this business this long is the satisfaction of helping its customers. As Mitch says, “Many times, people who come in here haven’t had an accident before. They are nervous and scared, and they’ve heard horror stories that their car may never be the same again. We try to put them at ease and let them know we are in a small town, and we aren’t going anywhere. They can ask their neighbors what they think of our work. We have stood by our work since Day One, and the look on their faces is a thank you.” WAN
Recruit-a-Member Program For each member an existing WACTAL member recruits, the sponsoring (existing) member will receive a one-time $50 credit toward their membership dues. There is no limit on the number of members an existing member can recruit. If the dollar amount of the credits exceeds the sponsoring member’s annual dues, the excess amount will carry forward to subsequent years. No monies will be paid out and credits cannot be cashed out. Credits cannot be split amongst multiple members. The sponsoring member’s individual and business name must be listed on the new member’s Application for Membership as the sponsoring member. If the new member had been a WACTAL member during the prior calendar year, no commission will be allowed.
This program can be rescinded or amended without prior notice. In the event the program is rescinded or amended, credits for applications received after the change will be processed under the new program. No credits will be issued if the program is rescinded. Winter 2020
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