Wisconsin Automotive News Winter 2016

The Official Publication of the Wisconsin Auto Collision Technicians Association Ltd.

Winter 2016

WACTAL Spring 2016 Conference & Trade Show PLUS:

www.grecopublishing.com

Auto Body Shop Choice Bill Signed into Law A Look Inside Post-Repair Inspections

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2015-2016 WACTAL BOARD of DIRECTORS President Larry Terrien MJ Collision Center larry@mjcollisioncenter.com

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Vice President Mark Williams Williams Auto Body mark@williamsautobody.com Secretary/Treasurer Ronnie Goss Goss Auto Body, Inc. ronnie@gossautobody.com Directors James Bryhan Bryhan's Body & Paint Specialists

Vol. 3 Number 2

CONTENTS PRESIDENT’S MESSAGE ........................................................5 Making a Difference at the 2016 WACTAL Conference & Trade Show

by Larry Terrien

WACTAL “RECRUIT-A-MEMBER” PROGRAM ..................................5 Eileen Haberman Glen's Auto Body, Inc. Randy Johansson FinishMaster Art Krolikowski Reedsburg Auto Body Inc. Mike Miyagawa M & M Auto Body Inc.

LOCAL NEWS ....................................................................7 Auto Body Shop Choice Bill Signed into Law

by Jacquelyn Bauman

WACTAL MEMBER SPOTLIGHT ................................................9 Car Craft Auto Body, Inc., Ladysmith, WI

Michael Taylor Zimbrick Chevrolet-Sun Prairie Tracy Black Dean’s Auto Body, Inc. Association Administration Sue Peterson wactal@execpc.com / info@wactal.com (800) 366-9482

by Jacquelyn Bauman

WACTAL SPRING 2016 CONFERENCE & TRADE SHOW INFORMATION ............10 WACTAL SPRING 2016 CONFERENCE & TRADE SHOW REGISTRATION FORM ....12

TALKING TECHNICAL ................................................................14 Lobbyist Jolene Plautz jplautz@aol.com

A Look Inside Post-Repair Inspections

by Larry Montanez III, CDA & Jeff Lange, PE

WACTAL BENEFIT PROGRAM ..................................................17 PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963

WACTAL MEMBERSHIP APPLICATION ........................................18

ADVERTISING: 973-667-6922 • alicia@grecopublishing.com PUBLISHER: Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES: Alicia Figurelli (alicia@grecopublishing.com) MANAGING EDITOR: Jacquelyn Bauman (jacquelyn@grecopublishing.com) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (lea@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 © 2016 by Thomas Greco Publishing, Inc. Cover image © www.istock.com

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ADVERTISERS’ INDEX Axalta Coatings........................................OBC Morrison’s Auto Parts ..............................4 Body Shop Supply Co. ............................6 P&L Consultants......................................15 Buerkle Hyundai ......................................8 Steck Manufacturing ................................16 Dentsmart ................................................15 Straight and Square ................................8 West Bend Mutual Insurance ..................IFC International Autos Waukesha..................13 Zorn Compressor & Equipment ..............13 LKQ..........................................................IBC 3

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Making a Difference at the 2016 WACTAL Conference & Trade Show The WACTAL Conference & Trade Show, slated for February 26-27, will feature a number of must-see presentations, including one by the Society of Collision Repair Specialists’ (SCRS) Executive Director Aaron Schulenburg. Schulenburg will lead a detailed discussion on how being connected to information can help you to anticipate upcoming influences on your business. Of course, the first way to connect is to attend the WACTAL Conference & Trade Show and see everything that WACTAL has to offer.

Additional seminars at the Conference include Building Relationships, Dealing with Complaints on Social Media and Body Shop Horror: Is Your Shop On a Collision Course with OSHA & EPA Compliance? Several I-CAR classes will also be offered. On Friday, our Trade Show will be followed

Member Program

President’s MESSAGE

by a Hospitality Social, thanks to our sponsors, AkzoNobel, Body Shop Supply Co., Morrison’s Auto Parts, Motors Service & Supply and PPG Industries.

The Trade Show will be available again on Saturday at 10am.

Start to connect the dots in making a difference in your business strategy by attending the WACTAL Conference & Trade Show. See page 10 for complete details and registration information.

Looking forward to seeing you there.

Larry Terrien President Wisconsin Auto Collision Technicians Association Ltd. (WACTAL)

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“Recruit-a-Member”

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.

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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.

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Auto Body Shop Choice Bill Signed into Law It’s always satisfying when a long-fought battle is finally won, and for members of the Wisconsin Auto Collision Technicians Association Ltd. (WACTAL), that victorious sigh of relief can finally be had.

On November 11 of last year, Republican Wisconsin Governor Scott Walker signed Senate Bill 93 – the auto body shop choice bill – into law. Senate Bill 93 “prohibits an insurer that issues a motor vehicle insurance policy that covers repairs to a motor vehicle from: 1) requiring that repairs must be made by a particular contractor or repair facility as a condition of that coverage; or 2) failing to initiate or conclude with due dispatch an investigation of a claim for repairs on the basis of whether the repair will be made by a particular contractor or repair facility.” The bill also establishes that “a consumer has the right to select the motor vehicle repair facility of his or her choosing” and “[n]o insurer may fail to initiate or conclude with due dispatch an investigation of a claim for repairs to a motor vehicle on the basis of whether the repairs will be made by a particular contractor or repair facility.”

This huge step in anti-steering legislation was introduced by Senators Howard Marklein (R-Spring Green), Janis A. Ringhand (D-Evansville) and Janet Bewley (DAshland) and co-sponsored by Representatives Ed Brooks Winter 2016

Local

NEWS

by Jacquelyn Bauman

(R-Reedsburg), Paul Tittl (R-Manitowoc), Daniel Knodl (RGermantown), Samantha Kerkman (R-Salem), John Murtha (R-Baldwin), Jeffrey Mursau (R-Crivitz), Kathleen Bernier (R-Chippewa Falls), Robert Brooks (RSaukville), Thomas Larson (R-Colfax), Ken Skowronski (R-Franklin) and Romaine Quinn (R-Rice Lake).

In a system where the success rate for proposed legislation is shockingly low, how does a bill like this reach success?

The answer is through persistence. WACTAL Board member Art Krolikowski of Reedsburg Auto Body, Inc. (Reedsburg) consistently interacted with legislators who drafted the bill, Representative Ed Brooks and Senator Howard Markelin. Through this determination, he and WACTAL lobbyist Jolene Plautz were able to achieve the passage of this bill.

“Art's tireless efforts in working with his legislator, Rep. Brooks, and his many trips to the Capitol are commendable,” WACTAL stated in a newsletter following the bill’s signing. “To those members who made phone calls and met with their legislators and attended public hearings – THANK YOU! Your efforts paid off!”

To read the bill in its entirety, visit tinyurl.com/WI-SB93.

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Car Craft Auto Body, Inc. Ladysmith, WI

“When life hands you lemons, make lemonade.” This old adage could not be truer for Ladysmith-based shop owner Phillip Sieg of Car Craft Auto Body, Inc. With an interesting journey and a positive mindset, Sieg has turned a shop that began in his father’s machine shed into a flourishing business.

Wisconsin Automotive News: How did you get into automotive repair and how did you acquire Car Craft Auto Body, Inc.?

Phillip Sieg: I first started at Minneapolis Auto Auction as a detailer, and I worked there for a while before moving to a dealership called Ramset Motors and detailing there. Within six months, I was the manager of the body shop. Ramset Motors ended up going bankrupt so my next step was moving to Madison and working at Sparkle Auto Body. While I was living down there, my apartment got broken into three times while I lived down there and my wife was pregnant so we moved back up to Ladysmith. I had planned on working at a body shop up here, but they didn’t end up hiring me, so I got some money and in 1982, I started working out of my dad’s machine shed. It started with just a couple of cars, but it quickly got busy.

We’re still in the same building today. It was a 900-square-foot shed when I first started, but we put additions on that and now we’re up to 5,280 square feet.

WACTAL MEMBER

SPOTLIGHT

by Jacquelyn Bauman

WAN: What have been some of your biggest challenges in your field?

PS: Making the move to waterborne was one of our big challenges. It was a very good move – I wouldn’t go back to spraying solvents if I had to – but waterborne paints made us have to adjust, big time. But it’s great for the environment and it’s helped us produce more hours with less materials, so it was definitely worth it.

WAN: Where do you see the industry in the next 10 years?

PS: Well, I’m only going to be in it for five more years, so I don’t need to think about it. One of my techs, Josh Wiemer, is being groomed to take over when I retire. In all seriousness though, the industry is just moving so quickly; I can’t even imagine where it’s going.

WAN: What is your favorite thing about the work that you do?

PS: The people. I enjoy the people I work with and the people coming through the front door. I enjoy them all. There’s nothing that I don’t like about my job, to be completely honest. We have a small, four-person operation here. It’s me and my wife and two other employees, so we’re all pretty close.

WAN: Why did you become a member of WACTAL? PS: I’ve been a member since 1996. I joined because of all of the valuable information that was available through the association. I went to a couple of the spring seminars and that got me hooked into it. It’s a great organization; they do a lot for our industry, and they’ve been so helpful in everything that we do here at our shop.

WAN: Why is it so important for shops to be active in the automotive repair industry on a larger scale, such as by joining an association?

PS: Our industry is changing so fast, and the training provided by the association is invaluable. When I first started in this field, there weren’t even minivans. Now, there’s more technology in your car than there was to land on the moon for the first time. You have to stay active in training programs and stay fresh on everything.

WAN: Who has had the biggest impact on you?

PS: Ed Welter from 3M. In 1987, he got me involved in a program that helped me learn how to manage and control my business. I went to all of the workshops and seminars and it changed my perspective; it turned me into a businessman instead of a body shop guy.

Car Craft Auto Body, Inc. recently made the switch to waterborne paints.

WAN: What’s something that you think sets your shop apart from other shops in the area?

PS: Well for one thing, the shop is right by my house. I walk to work every day. We ended up buying the farm from my dad in 1993, so the whole property is the family homestead.

We have about two acres of front yard and we make sure to keep it perfectly mowed at all times to keep the presentation of the shop. That definitely sets us apart. Plus, I have a very clean shop and it’s all LED lighted.

Visit Car Craft Auto Body, Inc. online at facebook.com/Car CraftAutoBody.

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WACTAL Spring Schedule of Events

Friday, February 26 8am 9-10:15am

10:30-11:30am

11:45am-12:45pm 1pm-2pm 2:15pm-3:45pm 3pm-7pm

3pm-7pm

4pm-4:45pm 5pm-8pm 8pm-11pm

Registration Predicting Influences on Your Business by Aaron Schulenburg (SCRS) Building Customer Relationships by Bill Morrison Lunch Building Vendor and Team Relationships by Bill Morrison – Part 2 Dealing with Complaints on Social Media by Gary Arndt I-CAR Class (CPS01 Corrosion Protection) by Jack Charles I-CAR Class (FOM01 Automotive Foams) by Mitch Becker Membership Meeting TRADE SHOW Hospitality

Saturday, February 27

8am 8am-12pm

8am-12pm 8:30am-10am

10am-3pm 12:30pm-4:30pm 12:30-4:30pm

Registration I-CAR Class (NEW16 Vehicle Technology & Trends 2016)

by Mitch Becker I-CAR Class (CYC01 Cycle Time Improvements) by Jack Charles Body Shop of Horrors: Is Your Shop on a Collision Course with OSHA & EPA Compliance? by Nick Hardesty (KPA) TRADE SHOW I-CAR Class (WKR01 Hazardous Materials, Personal Safety and Refinish Safety) By Mitch Becker I-CAR Class (APR01 Aluminum Exterior Panel Repair & Replacement) by Jack Charles

Location Ho-Chunk Gaming Wisconsin Dells S3214 County Road BD Baraboo, WI 53913 (800) 746-2486 Silver Sponsor BASF

Bronze Sponsor New Marketing Group

Hospitality Food Station Sponsors AkzoNobel Coatings, Inc. Body Shop Supply, Co. Morrison’s Auto Parts Motors Service & Supply PPG Industries

BODY SHOP SUPPLY Co. Winter 2016

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2016 Conference Programs

Predicting Influences on Your Business (Aaron Schulenburg – SCRS) WACTAL is featuring this must-see presentation from industry mainstay Aaron Schulenburg. Schulenburg will take an inside look at the trends and issues facing the collision repair industry on a national level and provide an in-depth examination of how a connection to information can predict influences on your business, and why paying attention to stories that connect the dots can make a big difference in your business strategy.

A passionate representative of the collision repair community, Schulenburg serves as the Executive Director for the Society of Collision Repair Specialists (SCRS), a national trade association that represents over 40 affiliate associations, 6,000 collision repair businesses and 58,500 specialized professionals within the industry.

Having previously held positions at collision repair facilities in Arizona, Delaware and Maryland, Schulenburg has entrenched himself in active industry involvement throughout his career, affording him the ability to bring relevant firsthand experience to his role. He served as the first administrator for the nationally acclaimed Database Enhancement Gateway (DEG), has chaired committees on Estimating and Consumer Relations for the Collision Industry Conference, held an executive seat on the Washington Metropolitan Auto Body Association Board of Directors and served on the National Auto Body Council (NABC) Board of Directors.

Aaron has been recognized as a creative and positive leader within the collision industry, and brings insight on areas of focus for collision repair professionals, garnered through SCRS’ national position in the industry.

Dealing with Complaints on Social Media (Gary Arndt – Fox Valley Web Design) Internet and social media postings have permanency. Once something is posted, it’s “out there” for all to see (if you know where to look). Learn how and where to search for comments regarding your business.

Gary Arndt, owner of Fox Valley Web Design, will share tips on how to deal with negative comments or reviews, how to get high rankings in the major search engines, how to turn online visitors into real customers and E-news marketing. The presentation will be followed by a Q&A session to answer any website-related questions you may have.

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Building Relationships (Bill Morrison – Morrison’s Auto Parts) Have you felt like you have lost control of your company?

Have you felt like you no longer know what to expect day by day from your company? If so, and if you have a couple of hours to spend, we have the answer for you.

This two-hour session will be based around FOUR words to build sales and run more efficiently in 2016. The first segment will focus on building customer relationships and understanding what your customers’ expectations are from your company. The second segment is about building vendor and team relationships, teaching you how to understand what your vendors and team members expect from you and what you should expect from them.

Morrison’s Auto Parts is a Wisconsin family-run auto recycling business. Bill is a hands-on day-to-day operations owner. He believes what he has learned over the past 30 years applies to the body shop industry, as well as the auto recycling industry. With over 60 team members at Morrison’s Auto Parts, he faces the same challenges and feels every day offers a new learning experience.

Body Shop of Horrors: Is Your Shop on a Collision Course With OSHA & EPA Compliance?

(Nick Hardesty – KPA) Collision centers can generate large revenue, but without the proper regulatory guidance, they can also incur huge fines and put their employees at risk for injury. Collision center compliance is more complex than it is for other facilities, but staying in compliance can keep you out of hot water with government agencies such as OSHA, the EPA and WIDNR. It can also reduce your risk, protect your employees, save manager time and save you money.

Join KPA expert Nick Hardesty for this informational seminar where we will review how to stay in compliance in terms of the environment, health and safety. We will discuss what special regulations you are required to adhere to, how to implement successful training systems, how to protect your employees and how to save your collision center time and money. We will discuss: • Aluminum safety • Hazardous waste management • Isocycanates and medical evaluations • 6H employee training recertification • Respiratory protection • Big changes to OSHA Penalty Policy

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Talking

TECHNICAL

By Larry Montanez III, CDA and Jeff Lange, PE

A Look Inside PostRepair Inspections “Post-Repair Inspection (PRI)” has become a catchphrase in the collision repair industry over the past three to four years.

Although PRIs have been around for decades, this term has grown in prominence in recent times for a variety of reasons. For one, the advanced steels used in late-model vehicle construction are generally unrepairable, yet pressure from insurers, unrealistic cycle times, a lack of technician training, antiquated equipment and/or greed have led to these structural components being repaired. This has resulted in noticeable imperfections.

Almost all collision repair professionals have experienced a poorly repaired vehicle in their shop. In some cases, they were horrified by what was done; in many cases, they were unsure of what to do about it.

(Note: We’re not giving legal advice in this article. Please check with your lawyer regarding the laws in your state.)

Good and Bad Situations When a car is poorly repaired by a Direct Repair Program (DRP) facility, a good situation is when the insurer will cover the re-repairs and rectify things quickly. The bad situation is when a non-DRP shop (with no ties to the insurer) repairs the vehicle incorrectly and the insurer says to their customer, “You chose the facility.” In this situation, the shop owner will need to hire a lawyer. The whole process could take months or even years. Even then, the vehicle owner may not get paid because the shop could go out of business. You must inform the vehicle owner up front what his or her situation is 14

and what the choices are.

We can break this discussion up into several categories:

Good – DRP Facility Repair First party is always good.

Third party can be even better because there is no contractual agreement, but it must have been repaired at the insurer DRP shop.

Options for settlement: The vehicle is repairable and you can come to an agreement with the insurer.

You and the insurer agree that the vehicle is a total loss.

You come to an agreement with the shop directly.

When the insurer and/or shop disagree:

The insured can sue the original repair facility and insurer on first party. On third party, they would add the driver and/or owner of the negligent vehicle.

Have the vehicle owner pay for the repairs and sign an assignment so that you (as the shop) can sue the insurer and repair facility.

Bad – Non-DRP Facility A lawsuit against the repair facility is the only way. It may take a long time to get restitution, if ever. This is the worst-case scenario.

This is true for insurer-pay or customerpay repairs. You chose the shop and the insurer does not have to cover the repairs.

Inspection Types Collision Repair Inspection (CRIs): This type of inspection is the most common and the least scientific. Generally, the vehicle owner will bring a repaired vehicle to a shop of his or her choice to review the repairs.

This is usually from a low-speed cosmetic or minor collision event. In most instances, the re-repair will need only slight adjustment, new clips, extra buffing and polishing or (at worst) a sand and refinish. This may be a free-of-charge service, a customerpaid job or (in some cases) the original repair facility will pay for the re-repairs. The insurance company is generally not involved in these types of cases.

Post-Repair Inspection (PRIs): This type of inspection is generally due to noticeably incorrect repairs and/or drivability and operational issues with the vehicle. This is a very extensive inspection where the following will generally be required: Hundreds of photographs Three-dimensional measurements Paint film thickness measurements Some destructive testing (disassembly, sanding or grinding) Borescope inspection Visual weld inspection

Generally, these inspections will uncover enough evidence to suggest extensive re-repairs.

Quality of Repair Examination (QREs): This type of inspection is the most scientific and requires extensive knowledge of vehicle Winter 2016

repair protocols, vehicle design, metallurgy and engineering principles. An engineer or collision damage analyst (CDA) generally performs QREs. A CDA is usually a collision repair expert who possesses extensive training on repair protocols, engineering principles, welding, structural repair and mathematics. A QRE requires these types of experts because they will need to prove what is wrong, why it is wrong, how it is wrong and why these repairs are required. Oftentimes, the expert will be required to go through a Daubert or Frye hearing. In a body shop situation, it is easy to state what must be done because of this or that. In a court situation, you will be required to have scientific proof. These examinations will require extensive and indepth evidence, including the following: OEM-specific repair protocols and procedures Hundreds of photographs (in specific numerical order and location) Three-dimensional measurements (with calibration reports) Paint film thickness measurements (with calibration reports and measurement analysis) Visual weld inspection and measurement Destructive testing (disassembly, destruction strength tests of components’ welds and bonding) Macroscopic and microscopic paint material evaluation Borescope inspection

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Talking

TECHNICAL Additionally, the client attorney requires an independent to assist in proving the issues.

Training To become successful at anything, you will need to train and practice (and obviously fail a few times). Your experience in collision repair is extremely helpful, but you will also need to build your résumé, professionally called a CV (Curriculum Vitae). Here is a list of training you will need to assist in your goal of being a PRI technician: Experience as a technician Current and ongoing structural repair training/certification from multiple lines (Celette, Car-O-Liner, Chief, CarBench, Global-Jig) Current and ongoing welding certifications from companies like ISO and AWS Current and ongoing OEM training certifications Current and ongoing engineering education Current and ongoing professional association membership Peer-reviewed articles Speaking engagements Training engagements

Larry Montanez III, CDA is co-owner of P&L Consultants with Peter Pratti, Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & resistance welding, measuring for estimating and advanced estimating skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision repairability and estimating issues.

P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860–3588 (cell), (718) 646–2733 (fax) or via email at larry goju@aol.com. The P&L website is www.PnLEstimology.com.

Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY (www.LangeTech.net). Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net.

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This will not happen overnight. It takes time to build your knowledge, experience and recognition in this field. One thing to remember is not to make such a big mistake that it ruins your career. Everyone makes a mistake or two, but don’t be so off base that it could prevent you from ever being hired again. Always remember that we are a small community and news travels fast. If you want to get involved in becoming a PRI technician or rising up the ladder to a CDA, take it slow and study. Practice makes perfect.

You will need to be proficient at photography, documentation, measuring and note-taking. All of these things will be used in the expert report you will need to write.

PRIs will grow in prevalence as more and more vehicles with advanced high-strength steel (AHSS) or aluminum are produced.

This will all be due to many collision repairers’ refusal to invest in proper equipment and training, which is causing the current crop of incorrectly repaired vehicles. PRIs are exposing the main issues in our industry, but they cannot address the solutions to ensure safe and proper repairs. Training, education and adhering to standard operating procedures (SOPs) are some things to start with to ensure that proper repairs are being performed. What you do today can destroy what you build tomorrow.

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