Agenda, Speakers Announced for CIECA CONNEX 2022 Conference

CIECA announced its agenda and speakers for the upcoming CIECA CONNEX Conference, to be held Sept. 13-14 in St. Louis/St. Charles, MO.In addition to a line-up of top industry speakers, there will be networking opportunities, a gifting ceremony by the National Auto Body Council® (NABC) as part of its NABC Recycled Rides® program, CIECA’s open annual meeting and a tour of Hunter Engineering.This year’s theme is "CIECA Next Gen: Evolving to Meet the Needs of the Collision Industry." All industry stakeholders, including CIECA members and non-members, are invited to attend.Speakers include: EVs Trends: Mark Allen, Audi of America; Frank Phillips, Rivian; and Jake Rodenroth, Lucid Motors Industry Updates: Greg Horn, Parts Trader; Ryan Mandell, Mitchell International; and Pete Tagliapietra, DataTouch The Digital Journey: Michael Anderson, Guidewire; Andy Boyd, 3M; James Palmer, Innovation Group; and Ryan Taylor, AMP Bureau Emerging Technologies including 3D printing, AI and Blockchain: Bill Brower, Solera; Greg Peeters, Car ADAS; Jonathan Pyle, Dents.co; Patrick Schmid, the Institutes; and Jason Verlen, CCC Intelligent Solutions Technical Updates: Mike Hastings, Car-Part.com; Andy Bober, Entegral; and Dan Webster, Mitchell International“With ADAS and autonomous features growing with every model year and new EV models expected from nearly every major manufacturer, technology is at the forefront of automobile design and the driving experience,” said Paul Barry, CIECA’s executive director. “All of this technology translates into data, and new repair methods, supply chains and repair procedures.”“The CIECA CONNEX conference is an excellent opportunity to meet and network with leaders from some of the most influential companies in the industry,” said Phil Martinez, CIECA’s chairman of the Board of Trustees. “We encourage all industry segments to join us for two days of presentations and discussions about emerging technologies, how they impact the collision industry and what CIECA is doing to prepare for the rapidly-changing business environment.”Conference attendees are eligible to receive credit toward a professional designation from the Automotive Management Institute (AMi).This year’s Gold sponsors include Enterprise, IAA and Solera. Silver sponsors include Allstate, Automotive Recyclers Association (ARA), BASF, Car-Part.com, Claim Genius, Comsearch, Mitchell International, Nexysis and United Recyclers Group (URG). Media Matters-Collision Repair Magazine is a media sponsor of the event.The day prior to the conference, NABC will be holding the Boone Valley Golf Club Fundraiser in Augusta, MO.“We hope CIECA conference attendees will be able attend and help us continue our mission to develop, implement and promote community-based initiatives that exemplify the professionalism and integrity of the collision repair industry,” said Bill Garoutte, president and CEO of NABC and the master of ceremonies at the conference. For more information about CIECA CONNEX, including the agenda, click here.For information about sponsorship opportunities, click here.Early-bird registration and discounted room rates at the Embassy Suites by Hilton St. Louis St. Charles are available until Aug. 14.Register here.Source: CIECA

Connected Car Study: 81% of Consumers Enroll in Free Trial When Offered

U.S. consumers want to hear from their automakers about connected services, safety recalls, warranties, insurance discounts and other benefits, according to a new LexisNexis® Risk Solutions study, "The Driver's Mindset: Connectivity and Connectedness," published July 26.Insights from more than 2,000 U.S.-based connected car owners highlight the opportunities for automakers to further engage with their customers, create new and used vehicle brand loyalists, and realize the return on investment for connected vehicle technology."Our study shows that automakers are at a confluence. While automakers face increasing competitive pressure to offer the best vehicle ownership experience, and connectivity is mainstream in many aspects of consumers' lives, there still seems to be lower consumer activation and conversion rates within connectivity programs, despite the benefits," said Dave Nemtuda, head of OEM product, U.S. connected car, LexisNexis Risk Solutions. "The automotive industry can take action on these insights to improve the customer experience, educate consumers on the benefits of connected services and help achieve connectivity-related business objectives."    Connected Car Study Highlights:Low activation rates of a connected services free trial are related to lack of awareness and opportunity to enroll, rather than lack of interest. Two-thirds (66%) of survey respondents were not aware of connected services before purchasing/leasing their new or used connected car and more than half (57%) were not offered a Connected Services free trial at the dealership.Our study findings suggest activation rates of a free trial would be higher if car buyers were offered the opportunity: Eight out of 10 (81%) car buyers offered a free trial enrolled and nearly half (45%) converted to a paid subscription after their free trial ended.Among those not offered a free connected services trial at the dealership, seven out of 10 (71%) indicate they would have been very/somewhat interested in enrolling if it had been offered.Consumers need to be educated on the benefits of connected services. Almost one-fifth (19%) of consumers indicated they did not enroll in a free trial of connected services offered at the dealership. The top reason, mentioned by the majority (63%) of the respondents, was they did not see the benefit or the value of connected services.Those connected services benefits not realized can include......the ability for a car to be located, unlocked or started, roadside assistance and vehicle diagnostics. In addition, over-the-air updates (OTA) can be important for consumers, including infotainment-related map or GPS information refreshes, audio updates, new app versions, streaming services, as well as drive-control-system updates, such as feature upgrades and security patches related to Advanced Driver Assistance Systems (ADAS).Automakers shouldn't rule out used car buyers. Buyers of new vehicles are twice as likely to be offered a free trial than buyers of used cars, even though the technology is available and accessible. Eighty-three percent of used connected car owners, which comprised about a quarter of the respondents, remain untapped and serve as potential connected services clients.A more seamless experience could help consumers activate on their own time. Sixty-four percent of survey respondents said having their information prefilled in connected services activation forms would make them somewhat or much more likely to enroll. Automakers can help consumers by prefilling connected service activation forms.Consumers expect automakers to keep them informed. Used car owners also indicated they expect to receive further information from their automaker on specific topics related to their vehicles. Nearly everyone (92%) expected to be contacted about safety recall notices, with warranty coverage coming in second, selected by 80% of respondents. Vehicle features with the highest interest noted were safety and convenience services.Automakers can help consumers take advantage of their driving behavior data. Sixty-seven percent of the respondents said they were aware connected vehicles can capture and transmit telematics data, which can potentially be used to obtain insurance discounts. Only 22%, however, have used their data for insurance discounts. Among those respondents who had not used their data for insurance discounts, 71% said they would be interested. "Now is the time for automakers to advance their customer journeys and develop a comprehensive customer experience strategy using the advanced data and analytics available today, or face losing to the competition in a challenging market," said Greg Ross, connected car practice lead, motormindz. "Consumers are telling us they are open to......the engagement that connectivity provides and, in many cases, they expect it. Automakers can differentiate themselves from other automakers by creating a unique and high-quality customer experience that engages new and subsequent owners throughout the vehicle lifecycle and educates consumers on how connected services can support their needs and busy lives.""One of the biggest takeaways is that by understanding their customers better, automakers can offer products and services at the right time, in a way that makes their customers feel valued and rewarded," said Adam Hudson, vice president and general manager of connected car, LexisNexis Risk Solutions. "That ongoing customer connection can help automotive brands continue to innovate and expand their connected services programs while improving the user experience. Automakers with fully maximized connected capabilities are able to more quickly develop and deploy new services and partnerships, gaining a competitive advantage by leading the market and increasing profits."Source: LexisNexis Risk Solutions

Automakers Want to Keep Dealer Supplies Low

Thanks to a shortage of computer chips for cars as well as other products worldwide, automakers have become used to doling out fewer vehicles to dealerships.Even though some of the problems are being straightened out with the promise of chips and other components being in high supply soon enough, it looks like many are planning to keep dealership stock low, giving car shoppers less leverage.For decades, many automakers have dreamt of what they’ve had during the pandemic instead of having to predict what customers might want, only to lead to dealers holding year-end clearance events to get rid of old stock. A report from Reuters detailed how those automakers are trying to mimic Tesla's “bare-bones approach to car options.”If you’ve ever taken a serious look at a Tesla, you know what that means. This strategy is being used to maximize profits while customers get less car for their money.However, the Reuters report makes it sound like automakers are going this route because all the supply chain issues won’t be worked out for years and years.A growing number of consumers have become suspicious they’re the victims of forced scarcity, suspecting automakers and others have purposely cut back on production so they can increase profit margins. There’s no known proof that’s what’s happening, but the suspicions prevail.Customers who want to order a highly customized vehicle might have to wait months on end for that privilege. That also could be the only way to get anything other than a stripped-down car, although shoppers will definitely pay more for their purchase.This marks a huge departure from the days where automakers touted their ability to make a car to exactly your specifications from the factory. Many brands would encourage customers to add all kinds of additional features, with Mini even offering personalized parts through 3D printing.Those days aren’t entirely gone, but there is considerable movement in the industry toward cookie cutter production, especially for non-luxury brands.With consumers conditioned to accept less while paying more, it seems those inside the industry who have been fighting for this forced simplification of vehicle options are winning out, for now. As a bonus, this movement helps with automakers switching to manufacturing EVs.While speaking to Reuters, S&P Global Mobility analyst Denis Schemoul spun the situation as a win for consumers, pointing out it will be easier for customers to find the car just like everyone else’s they supposedly really want."The reduction in diversity benefits everyone," he said. "And everyone will follow, even the Germans."We thank Motorious for reprint permission.

Georgia Taxpayers to Provide $1.8B in Incentives to Hyundai for New EV Plant

Georgia governments and development authorities offered Hyundai Motor Group more than $1.8 billion in incentives.In May, Hyundai said it had selected Georgia for its first fully dedicated electric vehicle and battery manufacturing facility. The plan calls for Hyundai to invest more than $5.5 billion in building the facility in the 2,923-acre Bryan County Megasite along Interstate 16, while non-affiliated Hyundai suppliers plan to invest roughly $1 billion in the project.Hyundai received a 26-year property tax abatement and will begin making "leasehold ad valorem property tax payments" starting in 2026 after it completes the initial construction of its facility. State officials said Hyundai would pay more than $357 million during the period.Under the deal, Georgia will give Hyundai a $50 million Regional Economic Business Assistance grant---doled out in a pair of $25 million payments---to help pay for site development, building or equipment purchases. It will also give a $112.6 million grant to the Savannah Harbor-Interstate 16 Corridor JDA for wetlands mitigation, additional land acquisition and site clearing and grading.The state will provide a dedicated Quick Start Training Center, expected to cost $62.5 million. The Peach State will also cover operating costs and training services for five years, at an estimated cost of nearly $5 million per year.Economic development officials plan to ask state lawmakers to allocate an additional $10.6 million for the Technical College System of Georgia to expand the existing Georgia Quick Start Advanced Manufacturing Training Center in Savannah.The Georgia Department of Transportation plans to make $200 million in road improvements. Additionally, nearly $6.9 million in state funding will go toward a rail extension to the project site for the Georgia Central Railway, a Genesee & Wyoming subsidiary.According to state documents, the Savannah Harbor-Interstate 16 Corridor Joint Development Authority is expected to invest more than $71.8 million. The JDA contributed $18 million to purchase the original three BCMS parcels, while a state grant funded an additional $43 million to purchase the site.Officials said the project would create 8,100 jobs with an average salary of $58,105. Under the deal, by the end of 2031, Hyundai and its suppliers must meet 80% of their commitment to invest $5.5 billion and create 8,100; they must maintain the jobs through 2048."When fully staffed, the estimated payroll generated by the HMGMA project alone will reach $4.7 billion over 10 years," Georgia Department of Economic Development Commissioner Pat Wilson said in a statement to The Center Square. "As we work together to deliver a state-of-the-art facility in Bryan County that will provide well-paying jobs to Georgians, we know Hyundai Motor Group will give back to the region, investing in our schools, families and communities, and we are grateful for those planned investments."Georgia officials point to their "history of partnership" with Hyundai, saying it is "a window into what a great community and corporate partner the company will be for decades to come." Hyundai has a controlling stake in Kia Corporation, which in 2009 agreed to invest $1.2 billion in a manufacturing plant in West Point and create 2,500 jobs.We thank The Center Square for reprint permission.

Glue Pulling Repair Becoming More Commonly Used in Auto Body Shops

For more than 30 years, collision repair technicians have experimented with glue pulling repair (GPR) techniques to fix vehicles.The tooling and techniques have improved over the years, allowing an increasing number of auto body shops to adopt GPR in their facilities, according to Chris White, president of KECO Body Repair Products.      Chris White, left, president of KECO Body Repair Products, and Gene Fetty, right, KECO’s master technician.“Glue pull repair is rapidly changing how collision repair work is done,” said White. “It is the least invasive, best-quality method to repair a dent today.”KECO has more than 50 years of experience in plastics. Founded in 1963, the company was purchased by White in 2004. Two years later, it doubled in size and has continued to expand over the years.In 2018, KECO opened a GPR facility and headquarters for body repair products in Oklahoma City, OK. Today, the team manufactures tabs, tools and accessories and provides training to dent and collision repair technicians.The company’s Level 2 GPR System was awarded the SEMA 2021 New Product of the Year in Collision & Refinish.During the SEMA Show, White teamed up with Gene Fetty, KECO’s master technician, to share information about GPR and demonstrate KECO’s products. His presentation, “Glue Pull Repair---Pull to Paint, and Beyond,” was part of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education Series and recorded for future viewing here.White explained GPR is a non-invasive cold straightening repair technique to pull dents with plastic tabs in various shapes and sizes. The tabs are adhered to a panel’s clear coat with specialized hot melt glues and then pulled with lifting devices.“This method of damage removal offers significant advantages over traditional collision repair techniques because it does not remove e-coatings and corrosion protection applied to the panel by the vehicle manufacturer,” noted White. “This yields a simpler, cleaner repair that can significantly reduce the amount of body fillers and/or paint to finish.”White is currently receiving inquiries from hundreds of shops a month interested in adding GPR to their repair arsenal. “Body work has been done for so long that a lot of guys think there is only one way to fix a dent,” said Derek Heinrichs, manager of City Collision II in Pittsburgh, PA. After experiencing GPR first-hand and physically doing it, Heinrichs said they will continue using this repair method in their body shop.GPR is Not PDRLike paintless dent repair (PDR), GPR aims to save as much of the original finish as possible so there’s little to no filling, priming and painting at the end of the repair. In addition, no stud welding is required.Although GPR is similar to PDR in some ways, White said “GPR is not PDR.”However, he said, with much more time and skill applied and with many times the use of additional PDR push tools, the GPR process can be a means to a full PDR.GPR is mainly used as a tool for conventional dent repair and enables technicians to avoid disturbing or damaging the insulation and sensitive electronics on the reverse side of the panel.In addition, he said, technicians experience less damage to the clear coat and less distortion of the metal. This leads to less harmful dust, painting and replacement of panels.“We’ve found over and over again that panels, particularly aluminum, that needed to be replaced are now repairable,” he said.A wide range of metals is compatible with GPR, including mild steel, high-strength steel and most aluminum. However, he encourages repairers always to check the OEM procedures.The GPR ContinuumWhite encourages technicians to think of GPR in terms of a continuum---something that keeps changing slowly over time.“It is that process that can be used very aggressively to move a lot of metal and also a process that can be used with great finesse and detail to be able to move metal and finesse out to a finer finish,” he said.He shared a graph of a GPR continuum, which includes the types of effort related to the repair, as well as how much filler, glaze, sanding and painting are required.“Where you want to get to on the continuum is really based first and foremost on the economics of the repair,” explained White.The GPR ProcessFetty then discussed the GPR process and demonstrated using it on vehicle damage that would have typically needed the panel replaced.He stressed the importance of following KECO’s “6 Cs” process to have good strong pulls every time.The 6 Cs:1. Clean: Always start with a clean panel for maximum adhesion. “Most of the time, all you need is 99% strength isopropyl alcohol,” he said. “Do not use paint thinner or other acetone-based products---anything that can attack the plastic.”Using a clean towel, follow up with isopropyl alcohol before using glue and tabs on the panel. The last step is to clean with 99% isopropyl alcohol, the glue’s release agent.2. Check: This involves checking the temperature of the panel, ambient air, tabs and glue; the size of the dent; the type of metal; and where to start pulling.Fetty said temperature is probably the most overlooked part of a successful repair. “The right temperature will guarantee a strong pull,” he explained. “If the glue is too cold, it will crystalize and if it’s too hot, it will prevent proper setup and solidification.”3. Choose: Based on the facts already known about the type of metal, size of the dent and the end goal will help technicians choose the appropriate lifting tools, tabs, glue and knockdowns. “Most of the time, the repair is going to answer the questions for you,” he said.4. Coating: If a technician doubts the amount of glue to use when coating the tab, Fetty recommends using extra glue. “It will only slightly affect drying time but will never negatively affect your pull,” he said. “If you are short on glue and it’s not filled edge-to-edge, you will get a bad pull.”5. Correct: Using controlled pulling techniques to massage the dents out, Fetty advises pulling the lows and knocking down the highs. “Work slow and methodically,” he said. “Slower is faster and cleaner. Slow and steady wins the race every time.”6. Continue: By repeating the process, Fetty said big dents are ultimately reduced to smaller ones. “Continue until the panel is ready for filler and the panel is restored without painting,” he said.Another consideration is lighting. “Correct lighting is very important,” said Fetty. “You can’t fix what you can’t see.”The goal, according to Fetty, is to be able to see the dead center or deepest point of the dent with the light parallel to the surface being fixed while the technician’s eyes are perpendicular.“It seems the momentum is building day by day for GPR,” said White. “We are seeing many OEMs showing interest in GPR over the last 12 months. We have literally had them tell us, ‘We don’t want to put filler in our cars anymore.’”For more information, goto the SCRS website or view videos on YouTube.

3M Offering Specialized Products, Training, Support to Collision Repair Shops to Help Drive Profit Efficiencies

With the pandemic halting mobility over the last two years and accidents falling sharply, the collision repair industry has been impacted worldwide.As a result, 3M has focused its efforts on offering specialized products, training and support to the collision repair industry to help it be more efficient, productive and profitable in the future, said Dave Gunderson, 3M’s president and general manager of the Automotive Aftermarket Division (AAD).Dave GundersonCelebrating his 34th year with 3M, the industry veteran recently shared major trends in 2022 related to collision repair and the ways 3M AAD businesses are focusing on supporting their customers.Gunderson pointed to statistics from an Apple Mobility Trends Report, one of the tools 3M uses to understand driving behaviors, demonstrating driving has increased 100% in the U.S. and is returning to pre-pandemic levels.“The positive news is that driving trends are moving more toward an endemic phase, and I look forward to seeing an improving business as we go through the course of 2022,” he said.3M Focused on New Products to Help Shops3M launched two new solutions during the pandemic to assist shops with their productivity and efficiency in collision repair: the 3M™ Performance Spray Gun and the 3M™ Cubitron™ II Net Abrasives.With the current raw materials shortage, paint companies, like all companies, have had to raise costs. Gunderson said the industry is starting to think long-term and focus on solutions that help offset the rising costs with product solutions that aid with shop productivity and eliminate some of the concerns.“We have been in the industry for a long time and our job is to bring innovation and solutions to problems to the market,” said Gunderson.The lightweight, versatile 3M™ Performance Spray Gun was created as a cost-effective and easy-to-use product for shops. Designed to deliver a consistent and professional paint job every time, 3M’s spray gun has demonstrated positive benefits for shops with the high paint transfer efficiency on repaired parts.Since being introduced to the industry, many customers have realized an average savings of 10% to 20% in paint mix costs.3M™ Performance Spray GunIn addition, the paint gun has positive benefits for the environment because fewer solvents are used through the cleaning process.“It’s a win-win-win, and we couldn’t be prouder bringing this innovative product to market,” he said.The company also introduced 3M™ Cubitron II™ Net Abrasives during the pandemic. Although net abrasives have been previously used in the industry, Gunderson said the 3M™ Cubitron II™ Net Abrasives use 3M’s patented precision-shaped grain material, which allows the solution to cut twice as fast and last twice as long as other net abrasives families. In addition, it captures more than 97% of the dust created when sanding in a shop.“With a shortage of technicians and competition for labor, employees want a clean, safe environment to work,” said Gunderson. “Our customers understand that dust extraction allows for a much cleaner body shop and paired with long-lasting abrasives, the productivity in sanding can also be met with fewer discs.”3M™ Cubitron II™ Net AbrasivesSupporting Body ShopsGunderson shared three distinctive ways 3M currently supports body shops: training and education, community and industry engagement, and increasing shop productivity and engagement.With training innovation facilities in more than 40 countries, Gunderson said helping educate the next generation of technicians is a priority to 3M. During the pandemic, 3M scaled up the virtual component of its 3M Collision Repair Academy.“Anyone can go online and get training on proper repair procedures,” said Gunderson. “That has been very successful. Last year, we trained over 40,000 technicians.”Training is also available for vocational-technical schools and includes information about OEM standards and specifications. In addition, 3M partners with I-CAR and OEMs to offer customized in-person and virtual training.An important goal for 3M in 2022 is to advance their training and curriculum offerings for aspiring and current technicians. This includes opening an approximately 20,000-square foot training facility in St. Paul, MN.“Our employees could not be more thrilled,” said Gunderson. “Our team loves working with and advancing the collision trade, and having a brand-new facility with the right equipment and full-size classrooms will allow even more shops and technicians access to the teams of subject matter experts at 3M."3M also takes pride in its community and industry engagement efforts. For instance, the 3M team will participate in paint finish competitions at SkillsUSA in June in Atlanta, GA. The St. Paul-based application engineering team makes it a priority to support bringing technicians into the trade.Finally, similar to the medical industry, Gunderson said collision repairers often spend as much time on the administration side of the business as on the operational side. The third area of focus is around the support and digital tool integration for body shops.“Our goal is to simplify shops’ day-to-day administrative tasks,” he said. “A lot of materials that are used in repair shops don’t get accounted for on a repair order… some of these are critical, like structural adhesives.”To help shops account for materials, 3M introduced the 3M™ Collision Repair Materials Planner tool, known as CRiMP, about five years ago. The tool enables shops create a repair invoice to account for materials used on an order, reduce supplements and fully account for materials used during a collision repair job.“There are a number of different required materials on a repair order that shops tend to overlook when writing and submitting a repair order,” he said.Gunderson offered the example of using seam sealer on a vehicle. By using CRiMP, it allows a shop to specify how much of the tube was used during the repair and then creates an invoice attached to the repair order. “This helps enhance the profitability of the shop,” he said.A second tool he discussed is Performance Analytics, currently being used in about 350 shops, which aims to help shops manage performance.“You can track shop data and determine where you are and aren’t making money and where you are losing or gaining productivity,” he explained.Owners and managers can benchmark performance against industry standards, receive recommendations on areas of improvement, and have access to two-way integration with body shop management systems and real-time tracking.Both of these standalone programs are being integrated into 3M™ RepairStack™ Performance Solutions, a digital suite of products that allows technicians to scan materials being used on the repair order to track inventory and performance analytics in one system.“We’ve had a very good reaction from the shops using it over the last nine months,” said Gunderson.The Connected Body Shop Digital SolutionLooking ahead, Gunderson said 3M will continue to focus and offer customers not only high-value allied products but also a connected and integrated digital solution.This can be done through the 3M™ RepairStack™ Performance Solutions, which aims to simplify order planning and automate delivery from distributors, as well as offer the capability to organize and track the use of both 3M and non-3M materials. This digital shop tool is currently in the beta phase and will add functionality with the technology asset acquisition of LeanTec. The goal is to increase the shops participating during the second half of 2022 and industry-wide in 2023.During challenging times, Gunderson said 3M is committed to bringing the best end-to-end innovations to market and providing training opportunities to body shops and aspiring technicians.

TN Auto Body Shop Owner Focuses on 3D Printing and Manufacturing Car Parts, Proprietary Coatings

Rick Spears, owner of Malibu Collision in Knoxville, TN, has always been interested in new technologies. As a result, he strived to incorporate state-of-the-art equipment and automotive materials in his collision repair facilities over the years.Eventually, he opened TRU-DESIGN, a 3D printing company adjacent to his body shop. The company has worked on a wide range of projects, including a full-size, drivable Shelby Cobra, and produces proprietary additive manufacturing (3D-printed) coatings.“3D printing is going to change everything in the future, including the body shop industry,” said Spears. “It’s really exciting to be part of this growing field that is taking off like a rocket.”Born in Texas and raised in Florida, Spears became involved in the body shop business in 1975. He was attending school in Florida in the 1970s and received a scholarship in commercial art.“I was dating a lady whose dad owned two Ford dealerships and I began painting for his business while attending college,” Spears recalled. “I quickly found that artistry paint doesn’t act the same as automotive paint.”Hoping to work as an artist at Walt Disney World, he realized he could earn more painting cars than working as an artist. He worked his way up from a painter’s helper and sweeping floors to becoming a driver, then a manager, and later opened two collision repair facilities in Florida.After moving to Tennessee, Spears opened Malibu Collision Center in 1999.The company’s mission is to provide the most accurate and quality collision repairs possible. It specializes in using advanced technology on all customer vehicles for major collision repairs, restorations and custom work. This includes working on high-end, luxury, vintage, custom and specialty vehicles.“We believe that materials such as carbon fiber, composites, fiberglass, aluminum and other advanced materials are the future of the automotive repair industry,” he said. The Shelby Cobra replica demonstrates the power of modern additive manufacturing, rapid prototyping technology and 3D printing.The business prides itself on providing exceptional customer service and ensuring customers are kept informed throughout the repair process. The shop also takes steps to address the facility’s waste by using an advanced product, the Becca Recycling System.“As one of the first non-hazardous waste-producing collision repair facilities in East Tennessee, we recycle everything, including Styrofoam packaging,” said Spears.The goal is to provide employees and customers with a clean, safe and pleasant environment.For many years, Malibu Collision also concentrated on custom work and restoration projects. Although Spears was passionate about the jobs, he realized it was hard to earn money this way.Instead, he began focusing on repairing vehicles using carbon fiber, composites, fiberglass and aluminum. He also started creating custom carbon fiber parts ranging from door panels to speaker boxes.“I’ve always liked doing things differently,” he said.Malibu Collision’s work with carbon fiber and composite parts has been featured on the DIY and SPEED channels as well as at NOPI shows.The shop has received numerous awards, including “Best of Knoxville” two years in a row. In addition, it is a three-time recipient of both the Ford Medallion Manager Award and Ford Top Gun Award, as well as Top 10% of GM Shops Award.The company’s first attempt at 3D printing a car was in 2008.“The power went off, we ran out of materials, and had software and hardware problems printing something so big,” recalled Spears.Although he said the car turned out ugly, he saved it as a reminder of the experience.The Shelby Cobra contains 500 pounds of 3D-printed products, 20% of which is carbon fiber reinforced ABS material.The following year, the body shop was involved in a custom project with Mickey Harris, the Ford Motor Company and Phantasmic Entertainment Inc. The project entailed creating a Ford F-150 crew cab truck to honor the men and women of the U.S. armed forces. It was unveiled at the 2009 SEMA Show and received Motor Trend’s “2009 Truck of the Year.”Since opening TRU-DESIGN in 2010, Spears and his team have worked on a wide range of projects with the Department of Energy, the Department of Defense, the construction industry and the automotive and insurance industries. In addition to printing car parts such as fenders and hoods, TRU-DESIGN’s projects include a submarine for the Navy, air intake manifolds for F-16s and a house.In 2014, Spears attended a tradeshow in Washington, D.C., to learn more about the use of carbon fiber. He met representatives from Oak Ridge National Laboratory (ORNL), which happened to be based in his home state of Tennessee. They were looking for someone to make carbon fiber parts for the lab’s Manufacturing Demonstration Facility (MDF), which includes a 3D printing department.After the event, Spears met with ORNL and began making carbon fiber parts for the lab.That same year, he partnered with the lab to print a 1965 Shelby Cobra replica for the Detroit Auto Show. The goal was to complete the vehicle in six weeks with parts printed in 24 hours. “From CAD drawing to drivable car, the project was unheard of,” he said.Rick Spears said the Shelby Cobra is a great example of a full-scale, fully functional “rolling laboratory.”The vehicle contains 500 pounds of 3D-printed products, 20% of which is carbon fiber reinforced ABS material. The 3D-printed parts include the shell, support frame, passenger monocoque, grille and headrest brackets.“The Shelby Cobra replica demonstrates the power of modern additive manufacturing, rapid prototyping technology and 3D printing,” said Spears. “It isn’t just proof that there’s more than one way to make a car---it’s the future of improving manufacturing solutions in the automotive industry.”Spears said it is a great example of a full-scale, fully functional “rolling laboratory.”“Using this technology, car designers can test and enhance automotive technologies in real-time,” he explained. “With the ability to quickly print a working vehicle, manufacturers will begin to innovate at rapid rates.”After printing the Cobra, Spears began producing proprietary additive manufacturing coatings.“I realized that’s my business,” he said. “I’ve been doing coatings all of my life on cars and I thought who could make it better than someone who has used it all his life.”The award-winning patent-pending TD Coat and TD Seal coatings are designed to work with a wide variety of large printer format polymer-based substrates and feature very high adherence.TRU-DESIGN also produces tools for manufacturing and specializes in creating molds using the latest advancements in composites and additive manufacturing.“Our innovative practices and creative ideas are some of the company’s greatest strengths,” said Spears. “The unique partnership with Oak Ridge National Laboratory enables us to stay on the cutting-edge of automotive technology, research and new materials.”Spears said large format additive manufacturing has advanced in equipment and materials in a short period.“This has led to the adoption by industries as a viable manufacturing alternative or enhancement to traditional processes,” he said.Spears said there are numerous benefits to 3D printing. Not only are complex geometries now possible, but products can also move from design to market in weeks, rather than months or years. Design feasibility can also be confirmed prior to production, less storage is typically required and there is more material flexibility.“I’m on the side of the fence I’ve never been on in my life,” said Spears. “I’ve always repaired cars; now, I am on the other side of the fence and get to help develop these cars."Watch a video of the making of the 3D Printed Shelby Cobra:

GM, Lucid Motors & Rivian Share EV Collision Repair Considerations

Sales of alternative power vehicles, including electric vehicles (EVs), currently represent about 5% of all U.S. light-vehicle sales---but that share is expected to reach 45% by 2035, according to research by the Specialty Equipment Market Association (SEMA).GM, Lucid Motors and Rivian representatives discussed the unique vehicle platforms they have developed and how their offerings differ from traditional vehicles during the OEM Collision Repair Technology Summit at the 2021 SEMA Show. The session was part of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education (RDE) Series.Following their presentations, a panel discussion was moderated by Kye Yeung, president of European Motor Car Works, and Ron Reichen, owner of Precision Body & Paint.The session explored the construction and repair considerations and opportunities, and how the collision repair industry will need to adapt.“The inevitable growth of this market makes the perfect fit for a summit that has always had an eye on the developing landscape of modern vehicles, with a focus on emerging trends that influence vehicle repairability and collision industry preparation,” said Aaron Schulenburg, executive director of SCRS.The following is an overview of some of the highlights during the session.GMDuring the OEM Summit, GM representatives Jennifer Goforth and John Eck, collision manager for GM, discussed the OEM’s EV strategy and the GM Collision Repair Network.Goforth shared information about the steps GM is taking to help transform the automotive industry and some of the newest technologies being used to maximize power, range and flexibility.“We’re looking at technologies we need today and in decades to come and we’re investing heavily in those new technologies to bring them to market,” she said. “We can’t go forward alone; that’s why we are here today.”She said GM is passionate about its zero crashes, zero emissions, zero congestion strategy.“The key to this vision is electrification,” said Goforth.The electric architecture being used to power the OEM’s newest technologies, such as Ultifi and Periscope, is GM’s Vehicle Intelligence Platform.Goforth also discussed GM’s research and development in regard to safety.“At GM, safety is in our DNA. There is nothing more important than ensuring the safety of our loved ones,” she said. “Most of all of our crashes that happen are due to driver error, so we’re focused on bringing new technologies that can reduce human error such as automated rear braking, forward and side collision alerts.”The company is looking at new technologies that reduce distractions while driving, such as hands-free communications and touch-free navigation.GM plans to launch 30 new electric vehicles by 2025.GM’s 2024 Chevrolet Silverado EV RST.“That doesn’t mean that we are giving up on combustion engines,” noted Goforth. “Those are going to be an important part of our portfolio for the next 10 or more years.”What that means for the industry, explained Goforth, is that repairing vehicles with internal combustion engines will be essential for the next 20-30 years because these vehicles will be on the road for many years.With a tremendous amount of technology coming out, Goforth said there will be many repairable parts. However, right now, some will not be serviceable, such as critical structural components and batteries.Eck then shared information about the GM Collision Repair Network, which will continue to focus on recognizing facilities that invest in tools and training to ensure an excellent customer experience.“Our focus is on a safe and proper repair that utilizes all of our service information,” said Eck. This includes a heavy emphasis on diagnostics and inspections.With a massive amount of technology being integrated into vehicles, Eck stressed the importance of scanning, calibration and checking diagnostic trouble codes (DTCs).“Making sure things are working as designed is critical to us,” he said. “We’re going to continue to create and add more support to the industry and make ourselves accessible.”GM’s OnStar Insurance, which is expected to launch in all 50 states this year, will be an important component of this.“We’ve been learning over the last few years post-collision how we can help customers navigate, but with OnStar Insurance expected to be national in 2022, they are going to be expecting a network that is fully supportive of driving safe and proper repairs for customers’ needs,” said Eck.Eck shared that GM is very focused on ensuring that repairers have the most current information.“Working with the industry, we’ve learned how to be hardware agnostic,” he explained. “That has helped us add flexibility to the marketplace and understand what is going on from a cost structure and not making [repairers] buy OEM tools specific to GM.”GM offers technical documents for repairers to use during the estimating/blueprinting process. Examples include service bulletins, safety protocols, Advanced Driver Assistance Systems (ADAS) documents, position statements and post-repair inspections.For certified inspections, virtual or in-house audits are offered to shops depending on what the facility prefers.Over the last year, GM worked with SCRS to devise and launch a post-inspection form to help repairers negotiate with insurance carriers. Since then, GM has received positive feedback from repairers and insurance carriers.“Several large carriers have said, ‘This is great; we are actually reducing our conflicts with the shop because now we know exactly what is expected,’” said Eck. “They might not like some of it but they understand it and it’s documented.”He said SCRS was very helpful in sharing the form with association members and the industry.“We really want to continue to work with SCRS to find solutions like that to help you as the repairer make safe and proper repairs,” he said.Lucid MotorsWith global headquarters in Silicon Valley, CA, and an assembly plant located in Casa Grande, AZ, Lucid Motors began delivery of the company’s first customer vehicle---the Lucid Air---in late 2021.Andy MacDonald, senior manager of Lucid’s global body repair program, and Andrew Hall, head of vehicle safety, participated in the OEM Summit panel discussion and provided an overview of the Lucid Body Repair Program.Currently, there are 50 body shops in the U.S. and Canada going through the certified program approval process, which they were able to join by invitation only.The Lucid Air on display at Lucid Motors’ studio in Short Hills, NJ.“As we ramp up production and vehicle parts grow, we will add to that number of shops,” said MacDonald. “We are interested in working with shops that can deliver high-quality repair capability and excellent customer service. That’s the cornerstone of what SCRS believes in and it’s a privilege to work with you.”MacDonald estimated there will be about 100 shops in the program in 2022 and that number will continually increase. Approved body shops will be fully trained and equipped to complete repairs, including all mechanical work.“Lucid’s program will restrict structural repair parts, such as aluminum safety systems parts and high voltage parts, to the approved network---those who are technically trained and we know are capable of repairing the vehicle,” explained MacDonald. “I’m not a big believer in YouTube videos teaching you how to repair vehicles.”Lucid’s repair methodology is being developed in close partnership with the OEM’s crash testing program.After working with 11 different OEMs over his career, Hall’s philosophy is to bring the Engineering, Serviceability and Body Repair teams together to be as effective as possible.As a start-up company with limited resources and an aggressive schedule, Hall noted Lucid Motors doesn’t have an unlimited number of crash cars for testing. As a result, vehicles are crashed more than once after being rebuilt by the service teams. For example, a car that has been front crash-tested at 35 mph is rebuilt to do a side crash test.Through this experience, Hall said Lucid Motors has demonstrated the capabilities of rework. This allows the OEM to bring in the service team a lot earlier and offer cost efficiencies for the business.“We’re also a lot further ahead with repair procedures than we would normally be,” he said.In terms of training, Lucid plans to offer online education to deliver fundamental system knowledge requirements to shops. This includes approximately 10 days of structural repair training and 15 days of mechanical training. The instructor-led courses will cover structural aluminum repair, cosmetic repair, visual damage assessment, high voltage systems, mechanical, diagnostics and ADAS.One of the biggest challenges now for shops, according to MacDonald, is the mechanical side of the business.“There is no simple repair anymore,” he said. “The days of doing a quick spot repair on a front-end bumper or rear-end are gone now because you have to align the vehicle and then calibrate it for ADAS.”As a result, Lucid is building measurement processes to determine how well vehicles have been repaired.“With so much technology in vehicles, it’s of paramount importance that when accidents happen and we’re required to repair the vehicles, you have the right level of equipment and training in place to bring that car back to a pre-accident condition,” said MacDonald.“Safety is important for the lifecycle of the vehicle and it is for every OEM moving forward to meet the challenges we are going to face as we move into the ADAS world and safe driving,” added Hall.“For us, it’s about providing education and transparency in what we are doing so insurers, repairers and customers all understand what we need to do in order to deliver the best possible service for them,” said MacDonald. “A safe and proper repair goes without saying.”RivianThe two Rivian representatives on the OEM panel included Kelly Logan, global body repair program senior manager, and Dan Black, manager for service engineering in collision repair.Logan helped create Rivian’s Certified Collision Program with Frank Phillips, collision program manager, and now manages the program.“Having the opportunity to create an OEM collision repair program from scratch is a great honor,” he said. “We want a highly trained network that can repair our cars and that aligns to what SCRS represents.”When Logan and Phillips began developing the program, they determined it did not make sense to have a single network encompassing both passenger and fleet vehicles due to their size and equipment differences. Instead, they created two separate networks that fall under the umbrella of Rivian’s Certified Collision Program.The Rivian Certified Collision Center network focuses on passenger cars, the R1T electric truck and the R1S SUV, while the Rivian Certified Fleet Center network includes commercial vehicles such as the 100,000 electric delivery vans Rivian is building for Amazon.The 2022 Rivian R1.Logan shared the program’s mission: “Revolutionizing the collision repair customer experience with an efficient and highly trained collision repair network.”“It used to be easy to fix cars,” said Logan. “I had my own collision repair center over a decade ago and back then, everything was mild steel; an aluminum hood or tailgate or a rear hatch on a vehicle was pretty rare.”That has since changed with the mixed materials and light-weighting going on now in the auto industry with efforts focused on removing mass and increasing efficiency to extend range and increase miles per gallon.“It’s definitely something you have to have training and tooling for to be able to repair vehicles properly,” he said.Logan said the Rivian team has been very busy connecting with many great collision centers over the last year.“We want everyone to know that just because you didn’t get chosen for the Rivian collision network today doesn’t mean it’s forever,” he said. “As our vehicle population grows, we are going to continue to need more highly-skilled collision centers.”Black heads the service engineering side of the business and works with a team of technical specialists and service engineers to create collision repair procedures. They also perform hands-on validation of the repair procedures, tooling and equipment through their R&D Workshop team at their flagship location in El Segundo, CA.“Their sole job on the team is to validate everything that the engineering team is creating,” said Logan. “We do a lot of research and development work behind the scenes.”As part of the repair procedures used by shops, Rivian will include information about the different substrates used on the vehicle. The goal is to assist shops in clearly understanding what can and cannot be executed to restore a car to its pre-accident state.“At the assembly plant, we can execute a variety of controlled vehicle construction processes with advanced equipment,” said Black. “Some of the equipment and joint accessibility does not exist in the aftermarket so we’re always developing new solutions that we can provide you to repair the vehicle correctly and restore the strength of the vehicle to ultimately perform correctly the second time around.”With the cameras and sensors being used in automobiles today, Black said pre- and post-scans are absolutely required on every vehicle and the calibration process is paramount.“As we go forward, it should be the basics,” he said. “That’s the only way to restore our vehicles correctly.”He recommends shops perform analysis on the vehicles’ diagnostic systems and document results and vehicle condition prior to beginning repairs to determine the scope of work required and the facility’s capabilities.“From my experience at a manufacturer that is developing advanced technology, Driver + systems (Rivian’s suite of advanced driver-assist features) are becoming more sensitive,” said Black. “As we move forward, frequencies are greater and the sensitivity of systems are higher so repair procedures are very critical to follow because you can easily introduce an issue into the vehicle without knowing it.”Logan said the Driver + system will be standard on all Rivian vehicles, and ADAS calibrations will be required.“When you look at collision repair and what it takes to repair a car properly today, the lines between service repair and collision repair are now blurred,” he said. “A collision center needs to know just as much as a service center needs to know.”To keep cycle times as low as possible and repair cars efficiently and properly, Logan said it is necessary to have the correct tools, training and knowledge.“As an industry as a whole, we’re just at the forefront of it,” he said. “It’s definitely something that isn’t going to go away anytime soon.”Click here to register and access the lessons from the 2021 RDE full series pass. click here.

Techs of the Future: Matrix Trade Institute’s Efficiency Bootcamps Help Collision Repair Industry Grow and Retain Employees

Many say one of the most alarming issues in the collision industry right now and in the foreseeable future is the desperate need for technicians.The industry is losing techs to retirement, and competition for tradespeople is at an all-time high. While the need to recruit thousands of techs into the industry isn’t going away anytime soon, the need for a disruptive retention model is even more important, according to Dustin Peugeot, CEO of the Matrix Trade Institute (MTI) located in Beachwood, OH.“We need thousands and thousands of them over the next 10 years, but the current model shows that over two-thirds of people who graduate from a post-secondary school defect from the industry in less than a year,” said Peugeot. “If the industry can’t find better ways to retain and grow technicians, then worrying about recruiting them is wasted energy.”Peugeot said retention is where MTI is making a difference by offering four-day, 30-hour, 80% hands-on Efficiency Bootcamps to employers so they can provide employees with specific skills and efficiencies to accelerate their growth.“MTI’s Efficiency Bootcamps are a core part of our program and what makes us truly unique from any other school,” said Peugeot. “This business-to-business offering was designed to help shops upskill and retain employees efficiently and cost effectively.”Employers provide their technicians with MTI’s self-assessment, which allows workers to feel valued and play a role in their own career development.“When the technician’s goals and desire for growth meets the shop’s need to increase capacity and retain valuable employees, then MTI is the connection point,” he said. “Matrix bootcamps provide an experience that shops can’t offer in addition to a return on investment (ROI) that pays short- and long-term dividends.”Over the years, Peugeot has found more and more shops are recognizing retention must be prioritized over recruiting to ensure the next generation stays in the industry and with the companies who hire them.“This industry doesn’t just have a recruiting problem; it has a retention problem,” said Peugeot. “Retention is different today than it used to be… you have to have a better offering with a better path and execution, and it has to be fulfilling and meaningful for employees. There’s too much competition to be able to afford not getting it right.”With people defecting from the industry for jobs with companies like Amazon or Walmart that promise career paths filled with attractive promises and benefits, or competing trades that are paying more and more for services every day, Peugeot said the industry is missing a vital connection point between the skills needed to succeed and the industry’s ability to provide ongoing career development that allows new hires to see the vision and grow as fast as they’d like to.“Employees need real, tangible career education so they can learn and earn simultaneously and have confidence that it’s going to connect to real development,” he said. “I think that’s what the traditional model is missing right now and that’s what we offer.”To help address the growing concern of recruiting, developing and retaining the next generation of technicians, Peugeot established MTI in 2019 with Rick Blum, COO.When the institute first opened, its primary focus was to offer automotive efficiency training for auto technicians and mechanics. Peugeot and Blum soon recognized the vital need for collision technicians and expanded the program to include a collision repair technical efficiency program.The training encompasses a 20-week, employer-centric, 80% hands-on repetition-based curriculum with an eight-to-one teacher-student ratio. The goal is to prepare graduates to work in dealerships, collision centers and franchised and/or independent repair facilities. Students attend class in the mornings throughout the week and are encouraged to intern with a repair facility in the afternoons. This allows them to apply the hands-on training they learn at school.With tradespeople in such high demand, MTI aims to provide job-ready automotive and collision technicians who don’t necessarily have industry experience. Peugeot said MTI differs from the traditional model where students attend a couple of years of school and receive a broad certification. Instead, the institute teaches skills that provide students with a good foundation. This includes hands-on repetitions and relevant skills so they can be productive, confident and efficient.“We try to make sure that we are preparing them mentally for how they can contribute,” Peugeot noted. “We are giving them a dose of what life is like in a shop as they grow their skillset.”Peugeot and Blum both have 25 years of experience in the industry. While Peugeot’s career has focused on dealer operations and collision centers, Blum is a master technician who successfully transitioned into a service director before embarking on the Matrix journey.“We are industry people who went about creating a new type of school, not education people who added automotive and collision programs,” said Peugeot. “We think there is a large differentiator there.”Since the program started, more than 250 students have graduated from MTI. That number is expected to increase substantially since adding the collision focus. Future plans include adding ASE and federal accreditation in 2022 and then expanding to other locations across the country.Three of the initial supporters of the automotive program, Conrad’s Tire Express & Total Car Care, Penske Automotive Cleveland and Serpentini Chevrolet, have become foundation level sponsors of MTI’s auto program.“These are some of the early adopters who recognized that this is a different model focused on real efficiency and the skills employers are looking for,” said Peugeot.After adding collision repair training to the program, Peugeot said MTI connected with DCR Systems, located 15 minutes away in Mentor, OH, almost instantly.“DCR was quick to identify itself as a company that recognizes that their future was all about their ability to train their own,” he said. The company became MTI’s first corporate sponsor of collision repair.“Forward-thinking companies like DCR challenge the norm and help keep Matrix at the forefront of what’s new and meaningful in this constantly evolving industry,” said Peugeot. “The alignment of DCR’s lean philosophy and the way Matrix teaches skill-specific hands-on efficiency makes for a natural alignment between the two companies.”Michael Giarrizzo, president and CEO of DCR Systems, said MTI is a forward-thinking school that isn’t focused on teaching students to repair vehicles the old and traditional way.“They are teaching students the baseline skills needed in a repeatable, process-centered environment,” said Giarrizzo. “We’re proud to partner with an organization that is looking for our feedback to grow the technicians of tomorrow.”Since sponsoring MTI, DCR Systems has offered input on the school’s curriculum, provided information about its repair processes and supplied tooling. Giarrizzo and Dave Martin, director of operations at DCR Systems, regularly visit MTI to talk to students about the industry and invite technicians to tour DCR. In addition, several MTI students have been hired by DCR and attend boot camps to continue career development.“Schools like Matrix are looking at technology and the industry as it is today and trying to prepare them for the increasing challenges of the industry,” said Cheryl Boswell, CFO and managing partner at DCR Systems. “The industry has changed so much that it’s important to find those tech schools where they are grooming the students for today’s world.”Adrian, an operations support technician from DCR Systems, attended an MTI Blueprint/Technical writing boot camp focused on becoming an effective blueprinter.“I’m learning to be as accurate as I can be, make the process work and slow down to achieve first time quality---a savings for everyone,” he said. “The DCR Systems family cares for me. They want me to improve and build a career and I want to improve for the company.”Rife’s Autobody, a three-shop MSO in Ohio now owned by CollisionRight, has had success with the MTI Collision Bootcamps for its employees. Don Rife, former owner and current operator of the business, learned about MTI about a year ago and sent Tyler, a metal tech apprentice with no prior industry knowledge, to one of the boot camps.“The experience seemed to work out really well and we have other technicians that we are planning to send in the future,” said Rife.After attending a blueprinting Efficiency Bootcamp at MTI, Tyler said he learned how to be more accurate in his job.“MTI made the environment so it’s not stressful,” he said. “It’s going to help everyone in the shop; not just me, but our estimators, the parts department and the people I work with, making things quicker, faster and more efficient.”Rife has initiated internal training programs in the past but found that partnering with others who are experienced at training technicians, such as MTI, results in better success.“Unless you are some amazing operator and have unlimited resources, you are better to partner with somebody who has already done this and understands what’s necessary than trying to recreate the wheel,” he said.Since Rife’s initial success with Tyler, CollisionRight has become the second foundation level partner of MTI’s Collison Program, and is in the process of providing employee assessments to its young technicians to take advantage of the growth and retention the boot camps provide to CollisionRight’s growing list of shops.Peugeot said businesses like DCR Systems and CollisionRight, that invest in their people and provide a great career experience, will be the ones that are ultimately successful.“There are too many employers who want to hire people the old-fashioned way and pay them a little and not do progressive things to develop them or provide onboarding experiences that are positive and culturally right for this generation,” noted Peugeot.He said shops that want to pay ransom and steal technicians from other shops aren’t fixing the industry.“They are hurting the industry… but in a world where they don’t have a better option, it’s all that they can do,” he observed.Peugeot stressed the importance of recognizing young technicians are an asset and recommends employers offer competitively paid internships and tuition reimbursement, as well as devote the time and resources to ensure there is a good onboarding experience. This includes providing a career path and letting technicians know management cares about their growth.“They want to feel like they are connected to the goals of the employer and feel part of something larger,” said Peugeot.Peugeot’s advice to shops is to take time to understand their next technicians are already in their market.“They just don’t understand how to get into the collision industry and learn what they need to learn fast enough in an organized fashion to make the leap,” he said. “Shops willing to take that seriously and provide the training they’ll need to have confidence to make the leap find this magical thing that occurs over time---they no longer have a recruiting problem.”Related news: Techs of the Future: How to Grow Skilled Technicians & Improve Performance in Your Collision Repair Facility TechForce Report: Demand for New Techs Nearly Doubled Since 2020 CRC Industries Joins with TechForce to Help Develop Next Generation of Technicians

Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2

Total losses, the Database Enhancement Gateway, computer vision and sustainability were some of the topics discussed during the IDEAS Collide Showcase held during the 2021 SEMA Show.First introduced in 2018 by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) series, IDEAS Collide gives thought leaders from across the collision repair industry the opportunity to share innovative ideas.This year, eight speakers talked about creative ways to help the industry evolve. This is part two of a two-part series. Read part one here.Sandy Blalock, executive director of the Automotive Recyclers Association (ARA), talked about the shared challenge the industry is facing with an increase in total losses. She hopes the different segments can generate thought-provoking ideas on how to make meaningful changes.“No matter what side of the issue we are, there is a consumer who has suffered a loss and it’s our collective job to find a way to make them whole again,” said Blalock. “Jeff Peevy [previous CIC chairman] will always remind us never to forget that empty chair; we all serve the consumer.”Blalock said total loss frequency has been rising over the last several years in the U.S. According to CCC Intelligent Solutions’ 2021 Crash Course report, 20.5% of vehicles were deemed total losses in 2020.“This means that shops missed out on the chance to repair one in every five vehicles,” said Blalock.This is up from 15% in 2010. The average totaled vehicle in 2020 had an actual cash value of $10,444; the average repairable vehicle was worth $16,657.In addition, repair costs have also risen.As insurance adjusters determine whether a vehicle is repairable or declared a total loss, Blalock said a number of factors weigh into the decision, including supplements and parts availability.With more electric vehicles and cars with ADAS coming into collision repair facilities, Blalock said scanning and calibration will be required, adding additional costs to the repair and determining whether the car is a total loss. Repair vs. replace and salvage values will also play a role.She shared some of the downsides to total loss, including the consumer owing more on the vehicle than it’s worth and fewer vehicles being fixed by the professional repair industry and auto recyclers.“Total loss does not mean end-of-life for a vehicle,” she said. “Repaired vehicles will be repaired by someone.”From her research, Blalock has found as many as one out of 325 vehicles on U.S. roads today may be operating with a fraudulent title that has been “washed” to disguise the vehicle’s actual damage, flaws or identity. Research shows one in five vehicles sold outside of licensed dealer networks are not legal private property car sales, but are illegal sales of curbstoned vehicles.“Curbstoning is essentially a flipping of vehicles often posing as a private seller,” she explained. “Many of these vehicles have been purchased at salvage auctions by unlicensed entities, repaired and usually not to any industry standard, then sold to some unsuspecting consumer looking for a good deal.”Blalock advises the industry to be aware of these issues and work together to come up with ways to address them.As the administrator for the Database Enhancement Gateway (DEG), Danny Gredinberg shared information about the free industry resource.The DEG was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. It is created, equally funded and maintained by the Alliance of Automotive Service Providers (AASP) and SCRS.With today’s estimating databases being large and complex, the task of building complete and accurate labor times and labor notes for vehicles can be challenging. All three information providers use a variety of methodologies to develop labor values. Gredinberg said this can often result in information that does not reflect real-world labor requirements of a repair operation. As a result, it can hinder the ability of an estimator to produce accurate repair estimates or blueprints that match the repair process.The DEG is designed to offer estimating system users a more standardized and streamlined process for generating Database Inquiries (DI). Danny Gredinberg, administrator for the Database Enhancement Gateway (DEG).“It can help anyone to improve an estimate whether it’s a repairer, technician or even a bill payer,” said Gredinberg. “If they find an error in omission or accuracy in any of three estimating systems, we can help address those concerns and get accuracy.”As the DEG administer, Gredinberg receives a lot of inquiries. One of the biggest challenges he sees is when a repairer writes an estimate in one database program and receives an insurance company estimate from another database program and nothing matches.“The reality is that we’re never going to get an exact result from three different database products,” said Gredinberg. “They all talk differently and have different logic and P-pages. They will never line up to each other.”He said it’s the estimator’s job to understand the system they are using in order to explain and justify the estimate to the vehicle owner.Gredinberg encourages repairers to talk to vehicle owners on the front end, use the estimating system the way it is intended, and capture all of the included and non-included items.“At the end of the day, the goal is for the consumer to get their vehicle fixed with the least amount of friction possible,” he said.Gredinberg strongly encourages the industry to share any database by submitting a database inquiry here.Pete Tagliapietra, product director at NuGen IT, an OEC Company, talked about leading-edge technologies, such as machine learning, computer vision, robotics automation and artificial intelligence (AI).“What’s unfortunate to me is how these technologies seem to be left behind as far as collision repairers are concerned,” said Tagliapietra.He challenged collision repairers to think outside of the box.Tagliapietra shared an idea of using these technologies to capture images of a damaged vehicle and immediately access all of the OEM information required by a collision repairer to repair it.Pete Tagliapietra, product director at NuGen IT, an OEC Company.In the current environment, Tagliapietra said repairers have access to individual OEM repair information through the manufacturers’ websites. However, each OEM has its own format, and repairers often don’t know what to look for and where to find it. Alternatives include accessing information through OEM 1Stop; a third-party provider, such as ALLDATA or Identifix; or via estimating systems repair lines.He talked about the possibility of accessing OEM repair information via computer vision. In this scenario, digital images of the vehicle damage would be uploaded to a computer vision central server. Once the images are analyzed, a collision shop could have the information available through the OEM website or a third-party provider within seconds.“The premise of the idea is to give collision repairers all of the information needed to create a complete blueprint of the automobile before the estimate is written,” explained Tagliapietra.In addition, reporting capabilities would be available. “Over time, you would be able to look at a certain year, make and model and understand what repair procedures are typically being used to repair that vehicle.”Tagliapietra said all of this is possible with the technology available today.“When you look at all of the different repair information opportunities, none of them bring all of the information that you need as a collision repairer to have access to them,” he said.By using computer vision, Tagliapietra said collision repairers would immediately know all of the necessary repair procedures to include if a pre-and post-scan is required, as well as a recalibration. They would also have access to manufacturers’ position statements before writing the estimate and repairing the vehicle.He encourages the industry to leverage the same technology used by other industries, such as insurance.“Dreaming big is something we need to do in this industry,” said Tagliapietra. “Otherwise, we’ll fall behind and, in some cases, fall further behind.”Michael LoPrete, vice president of global operations at Plastfix Inc., talked about sustainability and the future impact on collision repairers. Michael LoPrete, vice president of global operations at Plastfix Inc. LoPrete shared a broad definition of sustainability, which he described as meeting the needs of the present without compromising future generations’ ability to meet their needs.   “I think about sustainability as a journey to a place where we are able to complete vehicle repairs while eliminating all of our current waste streams,” said LoPrete. “I don’t think that there is a point that we’ll ever be finished.”  He shared what he referred to as the 3R’s of sustainability, in order of importance: reduce, reuse and recycle.  Examples of reduce include repairing something rather than replacing it, and conducting online training rather than incurring travel time. Reuse also refers to repair vs. replace, and LoPrete used the example of purchasing a new cell phone as soon as it is introduced, even if a person’s current device is working perfectly well. Recycling is often the first thing that comes to mind when people think of sustainability, but LoPrete said it has the smallest impact on sustainability initiatives.  He introduced the term “recoverability,” which he described as an item that has the capability of being recycled and then converted to a new product of the same type, such as glass or aluminum.   “The recoverability rate on those items is nearly 100%,” he said. With plastics, recoverability is less than 5% and includes specific products such as water and soda bottles.   The automotive aftermarket is reportedly the No. 2 generator of polypropylene waste globally and recoverability is close to 0%.LoPrete said green consumers are driving the increased awareness of sustainability, and Greta Thunberg is a leading spokesperson for Generation Z.“Generation Z looks at the world through the lens of the sustainability triple bottom line, which includes economy, environment and society,” he said. “Every decision they make tends to have filters that pass through all three of those things.”Many say Generation Z is demanding industries be more responsible and accountable for their actions.“The ones who do it in a meaningful way are positioning their businesses well to move forward,” he said. “The ones who delay taking action will have to catch up eventually because that segment of the population is only going to become a larger and larger piece of the audience out there.”Moving forward, LoPrete encourages industry stakeholders to work together and make sustainability part of their strategic thinking to reduce the amount of waste being generated while still producing safe repairs.“While we can do things individually that will make a difference, the reality is that the greatest impact will come if we work together,” he said. “Sustainability needs to be a topic of discussion; it can’t be left undiscussed.”He challenged the industry to do the following: Make sustainability an agenda item during meetings Appoint a subject matter expert within your organization Track and record your current waste and look at trends Identify pathways for improvement Involve other stakeholders in your conversations Share initiatives broadly across your organization“If we begin thinking about sustainability from this perspective, we can make progress that will shape legislative actions, rather than being subjected to requirements from outside of our industry,” said LoPrete. “There will be winners and losers across the stakeholder chain. The green consumer will make sure that happens. They will support the ones that make the right choices.” Learn more about the SCRS Repairer Driven Education series here.

Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase

Thought leaders from across the collision repair industry had the opportunity to share innovative ideas at the IDEAS Collide Showcase held during the 2021 SEMA Show.The event was first introduced at the 2018 show by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) series.This year, eight speakers were given 10 minutes each to talk about creative ways to help the industry evolve.“The ideas that we’re exploring really traverse a lot of different business models and a lot of different topics,” said Aaron Schulenburg, executive director of SCRS. “Some of them will be about how we approach the industry and some of them will be very specific solutions to specific challenges.”“We’ve always championed that the topics in this session should rattle the status quo,” added SCRS Chairman Bruce Halcro. “I think the lineup of contributors this year was poised to do just that and I personally find this to be one of the most ambitious sessions that breaks out of what we traditionally expect from industry education.”Information about the SEMA Garage Detroit was shared by Ben Kaminsky, general manager.Ben KaminskyKaminsky said the goal of SEMA Garage Detroit is to help SEMA members and partners develop new products, train and understand what they need to succeed in their businesses.The 45,000-square foot facility offers the capability to conduct emissions and horsepower testing. A large install center is being set up for influencer videos and instruction manuals.One of the highlights of the multi-million dollar project is the inclusion of an advanced driver assist systems (ADAS) center that encompasses two 40-by-60-foot rooms dedicated to ADAS and calibration.While setting up the ADAS center, the team reached out to industry experts for their insight on what would be helpful to include. As a result, they purchased a wide variety of tooling for those who use the facility.Lighting and wall colors were also considered due to the specifications of vehicles with advanced camera and vision technology.“Floors must also be flat and level to achieve accurate calibration results,” Kaminsky said.Kaminsky encourages collision repair specialists to think about how they will handle repairing future vehicles in their shops with ADAS features.“The amount of ADAS-equipped cars on the road in the U.S. is estimated to triple in the next five years,” he said. “If you don’t have a plan, I encourage you to think about it… It’s going to be really important for you going forward and your success in repairing vehicles in the future.”Todd Korpi, 3M global key accounts director, talked about the importance of always following OEM procedures.Todd Korpi“There’s a lot of information and training and it’s up to us to get that information to the technicians on the floor to make sure these vehicles are repaired the right way every time,” said Korpi.He acknowledged OEM repair procedures are not always easy to find and navigate; however, there are industry resources available, such as OEM1Stop and the I-CAR Repairability Technical Support (RTS) portal, to help provide information.Over his 25-year career, Korpi has found vehicle technology continues to change, and there’s more coming.“The documentation helps you get paid and it also ensures the vehicle is going to go back to pre-accident condition,” he said.When making a material decision or selection, he cautioned auto body shops to be aware of generic claims such as “OEM approved” and “equivalence.”From his experience at 3M working with auto manufacturers over the years, Korpi said if a certain product is not included in the OEM documentation/repair procedure bulletin, he would question if it’s the right product to be used.Korpi said the 3M team works for years on test specification development and testing products.“There’s a lot of work that goes into making sure they meet the OEM repair procedures, guidelines and material specifications,” he explained.The bottom line, according to Korpi, is OEMs are the authority on repair procedures and recommended products required for a safe and quality repair.“It’s a high-stakes industry,” he said. “The OEM way is the only way.”An overview of data security was provided by Brandon Laur, vice president, business development and client experience at CCi Global Technologies.Brandon LaurWith hacking becoming a huge problem over the last several years, Laur noted collision repairers need to have systems to prevent data breaches.He encouraged facilities to have customers sign repair authorizations before the car is fixed.“If everybody is not getting those authorization agreements completed, we’re in trouble,” he said.He also recommended working with trusted vendors and find out where they are storing data, what it is being moved, how accessible it is and how quickly it can be removed.“Just because you delete it from your management system or estimating system doesn’t mean that it is deleted from all of the tables there,” he said. “We as an industry need to protect ourselves.”He shared information about a new solution available, extended detection and response (XDR), which allows businesses to monitor and mitigate cybersecurity threats.When looking at the business environment, Laur suggested taking a “zero trust” approach.“This means that nobody within your collision center has access to all of the data,” he explained. “If somebody has access to all of the data, that means they are the vulnerability point where you can be hacked.”The No. 1 area where people are finding their way into a business’s system is through technicians’ phones, according to Laur. He advised shop owners and managers to check if their phones are encrypted before connecting to WiFi. He also recommended looking into cyber insurance.If a breach does occur, Laur said a business can survive; however, it must be transparent in what is communicated.“We need to start to hold this industry accountable to being able to take data security a lot more seriously than what we have,” said Laur. “It’s up to everybody to hold each other accountable and continue to look for ways to move this industry forward.”Jake Rodenroth, a diagnostic specialist, now working with Lucid Motors as of Dec. 6, discussed what the collision repair industry must do to evolve. He pointed to five business areas to focus on: talent, product knowledge, their business model, OEMs and DRPs, and integrity.Jake RodenrothRodenroth said new talent working in this field are looking for a career path.“When you see a young person, take them under your wing, and stop looking for things they do wrong,” he said. “Try to catch them doing something right and praise them.”Regarding product knowledge, Rodenroth noted customers are becoming even more intelligent about their vehicles than ever before.“We need to be experts at what we do,” he said. “Our customers expect that out of us and they want a painless process.”Looking to the future, Rodenroth indicated there will be changes in how vehicles are repaired using new methods, such as 3D printing and augmented reality. He encourages shops employees to be open-minded about these technologies to help repair vehicles, run the facility and provide an unbelievable customer experience.He also advises owners and managers to be receptive to OEM and DRP partnerships, which are likely to become more common.“It’s not always easy to do the right thing and get along with everybody but integrity is everything,” said Rodenroth. “My father said to be great at what you do because perfect strangers are counting on you.”He reminded attendees that continuous education and integrity are the lifeblood of a true professional.This is Part 1 in a two-part series. The remaining four speakers were highlighted in Part 2 here.For more information about the SCRS Repairer Driven Education full series digital pass, which includes 20 regular sessions and three OEM Summit sessions, click here.

OEConnection Acquires VeriFacts Automotive and Assured Performance Network

In November, OEConnection (OEC) confirmed it recently acquired VeriFacts Automotive and Assured Performance Network.Both companies are based in California and provide Certified Repair Network services to OEMs and collision repair shops with customer relationships in North America.“Over the last few years, we’ve been working to expand OEC’s value proposition to collision industry customers,” said OEC in a statement. “In late 2020, we entered the Certified Repair Network arena with the acquisition of Summit Consulting, Inc. (SCI) to create a flexible and dynamic solution for the CRN space."With VeriFacts and Assured Performance joining the OEC family, we will continue to enhance the value we bring to our collective customer base with the primary goal of driving safe and proper vehicle repairs.”VeriFacts, established in 2002, is an independent, third-party verification service that offers oversight, analysis, coaching, education and technology for collision repair facilities.Assured Performance Network, formed in 2003, provides independent third-party certification for collision repair providers.OEC first launched in 2000 with the mission of helping OEMs sell more genuine parts.“As the industry evolves and increases in complexity, the best way we can continue to serve our customers is by connecting the aftersales industry through solutions that help deliver efficient repair lifecycles, OEM parts and procedures, and proper vehicle repairs,” said an OEC representative.Based in Northeast Ohio, OEC is a leading technology provider for OEM distribution networks. The company equips many of the world's largest automotive and heavy-duty original equipment manufacturers, their franchised dealers and distributors, and customers with online parts marketing, procurement and inventory management solutions that facilitate efficient and accurate wholesale services.As a provider of SaaS-based solutions for OE parts, OEC focuses on data management, ecommerce, pricing, supply chain, cataloging, service and business intelligence (BI) solutions, across North America, Europe and Asia Pacific.In November 2020, the company acquired SCI, a BI consulting and solutions provider for the automotive industry headquartered in Dallas, TX.Following the acquisition, SCI President Bob McDonald said, “This is a very exciting time for the SCI team. OEC has a tremendous track record of delivering value to its customers. OEC’s proven, high-quality solutions, combined with SCI’s domain expertise and BI platform, position us to deliver even more value to our customers.”Earlier that year, in July 2020, OEC acquired NuGen IT, an award-winning software firm based in Kansas City that develops management tools for the automotive repair industry.In a press release issued at that time, the company said NuGen IT will add collision repair industry expertise to augment OEC’s growing collision business.“NuGen IT brings high-quality collision market solutions and repair expertise that will help expand our value to the collision industry,” said Ike Herman, OEC’s EVP of corporate development.“I am extremely proud of all that the NuGen IT team has accomplished and couldn’t be more excited about this next step in our evolution,” said Pete Tagliapietra, founder and president of NuGen IT, after the acquisition. “OEC has a tremendous and successful track record of delivering solutions to body shops and automakers, and I look forward to what this partnership will mean for our collective customer base.”

SUN Collision Repair Information Offers Complete OEM Procedures & Mechanical Insights

When a collision occurs, any damage to the body and frame is likely to affect the sensors, cameras and other mechanical components.Scott DeGiorgio, general manager at SUN Collision, said these must be repaired and/or recalibrated so the vehicle can be returned to its preexisting condition.To provide technicians with the information they need to properly fix a car, SUN Collision Repair Information was created by SUN®, a brand of Snap-on Incorporated.The web-based, mobile-friendly product includes all of the relevant repair details based on OEM procedures. This includes ADAS repair and recalibration information, OEM data for materials, paint, body and frame, the latest recalls and TSBs, as well as insights for mechanical repairs.“You can easily access all of the procedures and specifications needed to efficiently repair damaged vehicles,” said DeGiorgio.The database encompasses complete OEM-licensed procedures for 1960-2022 automobiles and is updated regularly by a team of editors. DeGiorgio said the product provides technicians with complete data related to just about any vehicle that could pull into an shop’s bay.“If you were to print out the data that is in this application, it would be about 35 million pages,” he said. “It’s very comprehensive. We did some intuitive things with the application to assist the technician.”DeGiorgio explained SUN Collision was introduced to the market to offer collision facilities a single source of information that covers both collision, based on OEM procedures, and mechanical, using SureTrack® Real Fixes based on actual mechanical repair solutions.“Some shops are farming out the mechanical piece because they don’t have the knowledge to do it,” said DeGiorgio. “SUN Collision assists technicians to be able to do more of that repair, bringing more profit into the shop.”A significant challenge for technicians is the time it takes to look up OEM repair procedures. As a result, DeGiorgio said SUN Collision was designed to be easy to use.“All of the information for vehicles is laid out in the same way across all makes and there is full access to both collision and mechanical information,” he said.By providing it all in one place, DeGiorgio said it will help shops reduce repair times and become more efficient.“I could take a B tech and turn him into an A tech with this information,” he said. “At $100/hour for a technician, I can’t have him spend a half-hour looking for information and struggling, so we made this as simple and fast as possible. They have all of the information they need with a few clicks of a mouse.”Since it was first introduced at the 2019 SEMA Show, new content, increased coverage and enhanced features have been added to SUN Collision. This includes an ADAS Quick Link, which provides technicians a complete picture of the ADAS repair details in a table with clickable links.“You can’t work on a vehicle anymore without this type of information,” he said. “Technology is so complex that you have to have some type of resource for this knowledge.”SUN Collision also offers advanced search engine technology using 1Search™ Plus. DeGiorgio explained technicians can easily access the relevant information they need through the search function by clicking on what is referred to as a “data card.” These are subcategories that contain in-depth specifications and procedures for the car.SUN Collision was showcased during the 2021 SEMA Show at the Snap-on Total Shop Solutions booth, with its sister brands: Mitchell 1, John Bean®, Car-O-Liner® and Hofmann® products.DeGiorgio and other SUN Collision representatives conducted product demonstrations at the event and discussed the significant growth of the product.SUN Collision offers comprehensive training to shops that use the software to help maximize its effectiveness and customer service representatives are available to provide support.In addition, technicians have access to a large community of technicians online to ask questions and learn about the product.With a background in the automotive repair side of the business, DeGiorgio said the company is confident about what it has built for the industry.“As technology continues to change, we are changing with it,” he said. “We’re excited about what we built and hopefully, it’s in every shop soon.”

Collision Repair Industry Members Recognized at Red Carpet Award Breakfast at SEMA

Members of the collision repair industry gathered at the Red Carpet Awards Breakfast on Nov. 3 during the SEMA Show in Las Vegas, NV.Prestigious awards and recognitions were given out by the Collision Industry Electronic Commerce Association (CIECA), BodyShop Business, the Collision Repair Education Foundation (CREF), the Inter-Industry Conference on Auto Collision Repair (I-CAR) and the Society of Collision Repair Specialists (SCRS). The free event was emceed by Jordan Hendler, owner of Admin Concepts and organizer of the Collision Industry Conference (CIC), and sponsored by BodyShop Business, SCRS and the participating organizations.“I can’t believe it has been 23 years that I’ve been in this industry and to be up here is a huge honor for me,” said Hendler during the event. “I know what we’re looking forward to is honoring those who go above and beyond the call of duty---those who stand out in a crowd.”The following is a summary of the award winners:CIECABefore announcing CIECA’s 2021 awards, CIECA Executive Director Paul Barry named the 2020 winners, who were unable to receive their recognition in person last year due to the pandemic.Andy Bober, a software engineer at Entegral, received an award for Outstanding Contribution. A special Lifetime Achievement Award for Outstanding Dedication was given to Charley Quirt, who retired in 2020 as CIECA’s project manager after 18 years. Phil Martinez, senior technical consultant at Mitchell International, received the Chairperson’s Award and Mitchell International was named Electronic Commerce Company of the Year. Debbie Day, executive vice president and general manager of APD, accepted the recognition on behalf of the company.Jeff Schroder, CIECA’s chairman of the board and founding CEO of Car-Part.com, then announced the 2021 award recipients.In appreciation of his efforts over the last 25 years representing Axalta Coating Systems before retiring this year, Tom McGarry received an award for Outstanding Contribution.“Thank you, Tom, for all of your dedication and commitment to CIECA,” said Schroder. “You will truly be missed and we wish you all the best in your future endeavors both personally and professionally with your new company, Collision KPIs.”Schroder announced the two individuals who received a Chairperson’s Award: Kim DeVallance Caron, director of product discovery for Enterprise, for her leadership on the executive committee and during CIECA’s staffing transition; and Dan Webster, principal architect at Mitchell International, for his leadership on the Architecture Committee during CIECA’s transition to the organization’s new CIECA’s API Standards.Barry then announced the Board of Trustees named Car-Part.com as Electronic Commerce Company of the Year for its team’s extensive committee involvement and promoting CIECA Standards throughout the industry. The award was accepted by Schroder.Jeff Schroder, center, founding CEO of Car-Part.com, accepts the award for CIECA Electronic Commerce Company of the Year from Paul Barry, left, CIECA’s executive director, and Paulette Reed, right, CIECA’s technical project manager. Photo by Stacey Phillips.BodyShop BusinessTwo awards were given out by Jason Stahl, editor of BodyShop Business, and Sean Donohue, publisher of the magazine and vice president of sales for Babcox Media. They included single-shop and multi-shop executive of the year.Stahl said the winners of these prestigious awards are two collision repairer visionaries who have experienced great success through innovative thinking, overcoming challenges and persevering.Steve Saunders, director of OE compliance/training at Faith Quality Auto Body, received the single-shop award.“He probably has the most knowledge of correct OEM repair procedures for any modern vehicle in the entire industry,” said Stahl. “He walks through the shop daily inspecting the technicians work to make sure his shop stays compliant with their OEM requirements and that’s a lot of responsibility given that the shop has 17 different OEM certifications.”Cheryl Boswell, CFO and managing partner of DCR Systems, received the multi-shop award.Boswell began her career in 1998 with Sterling Collision Centers as the national director of finance, where she helped expand the company from 23 to 70 locations. Since 2005, Boswell has been CFO and managing partner of DCR Systems, where she provides strategic leadership.The owner of DCR Systems, Michael Giarrizzo, said what makes Boswell unique is that while she has the insight to ask tough questions, she can explain difficult concepts in a way that resonates with numerous audiences.CREFBrandon Eckenrode, CREF’s managing director, then announced the recipients of the Fueling the Future Awards: Carl Boyer, midwest regional manager of Stertil-Koni USA, and Tim Adelmann, who worked with ABRA for 35 years and was the chief business development officer with Driven Brands for two years before he retired.“The Fueling the Future Award is an opportunity for us to recognize individuals and/or companies that have gone above and beyond in joining us and helping the future of the industry,” said Eckenrode.Before handing out the awards, Eckenrode talked about his connection with the first award recipient, Boyer. While Eckenrode was employed with I-CAR in 2003, he read an interview with Jay Leno, which included information about his passion for supporting students. He sent Leno a letter telling him about I-CAR and the foundation. In January 2005, Leno called Eckenrode and told him to keep up the great work.Years later, Eckenrode connected with Boyer on LinkedIn after noticing a picture of him standing with Leno and reached out to tell him about CREF. During their conversation, he learned Boyer’s company had equipment in Jay’s Leno’s Garage and asked if Leno might be able to do anything to help support technical students.“Within 24 hours, Carl called back and said that Jay Leno will donate a private tour of his garage to the foundation that can be auctioned off to raise funds for the industry and future professionals,” said Eckenrode. Through Boyer’s generosity, Eckenrode said the winning bidder, a Denver body shop owner, will have the opportunity to visit Jay Leno’s Garage.Adelmann was also recognized for his many years of service to the industry and CREF. Eckenrode said Adelmann, a former CREF board of trustees member, was instrumental in getting his staff involved with the local I-CAR committees around the country. He has introduced CREF to many industry contacts, which Eckenrode said is an incredible way to get involved in CREF. In addition, Adelmann has made a generous personal donation to CREF every year.Mark Wahlin, vice president of franchise development and operations for Auto Body Repair of America, accepted the award on behalf of Adelmann.I-CAROn behalf of I-CAR, John Van Alstyne, I-CAR’s CEO, presented the organization’s awards, which recognize one collision repair shop and one individual for advancing technical education and professionalism in the industry.“It’s always a pleasure to present our annual awards to honor one exceptional Gold Class shop and one outstanding Platinum individual,” said Van Alstyne. “They are a standout in any year but measuring against the tough year that 2020 was, their achievements shine extra brightly.”Schaefer Autobody Center in Webster Groves, MO, owned by Scott Schaefer, received the Russ Verona Memorial Award for its 2020 performance.The award recognizes an I-CAR Gold Class® shop that demonstrates a strong dedication to technical training and reinforces the positive image of the collision repair industry. Since 2006, the family-owned and -operated business has been I-CAR Gold Class and has grown to include 12 locations since opening in 1985. Van Alstyne said the company’s success is linked to its focus on quality repairs and customer service.“It strives to not only meet, but to exceed the industry’s highest standards,” he said.Kenny Hall of State Farm Insurance in Worthington, OH, received The Jeff Silver Award, which honors an I-CAR Platinum™ individual who demonstrates passion for training and professional growth.Hall has been Platinum since March 2004 and serves as the Ohio I-CAR Chair and Committee Chair of Columbus, OH, and is a member of the board of directors. He also created the CCEG “Techs of Tomorrow” program to give back to students looking to work in the collision industry.Kenny Hall, left, recipient of the I-CAR Jeff Silver Award, with John Van Alstyne, right, CEO and president of I-CAR. Photo by Stacey Phillips.SCRSSCRS presented three awards to deserving individuals. Brett Bailey, SCRS immediate past chair, announced the Collision Industry Non-Individual Service Award winner. He said the award is intended to recognize contributions to the collision repair industry that originate at an organizational level.“For 20-plus years, this organization has represented the industry, specifically bringing females into the industry [and providing] training, education, scholarships and all of the things we like to do as an industry,” said Bailey.On behalf of SCRS and in recognition of their tireless dedication, the award was given to the Women’s Industry Network (WIN).Aaron Schulenburg, executive director of SCRS, then announced the SCRS Collision Industry Achievement Award recipient. Typically, he said the award is given to someone who has taken action to make the industry better. It is to recognize anyone who exhibits actions that would be considered exemplary in maintaining and advancing the collision repair industry, and has only been awarded on 13 other occasions in SCRS’s nearly 40-year history. “I think everyone should be so lucky in their career, especially if they’ve been here for many years or decades, to be able to do something that resonates throughout the industry in a really significant way… not because they want the recognition or to be noticed but because they care enough to do something that really matters,” he said. “I think to be recognized in the collision repair industry for putting the consumer first is the most honorable recognition you could get. It’s why we are all here and all obligated to do.”Schulenburg presented the award to Jeff Peevy, vice president of technical products, programs and services at I-CAR.Jeff Peevy, left, recipient of the SCRS Collision Industry Achievement Award, and Aaron Schulenburg, right, executive director of SCRS. Photo by Stacey Phillips.He said Peevy was recognized for putting the consumer at the center of industry discussions, represented by a chair out on stage at the Collision Industry Conference (CIC) while he was chairman to ensure nobody in the industry forgot why there were there and who they serve. That practice has been carried on during CIC meetings and referenced in trade publications and presentations.The final recognition given out during the awards breakfast was the 2021 March Taylor Kina’ole Award, presented by Jeff Hendler, owner and president of J.D. Hendler Associates; Barry Dorn, vice president of Dorn's Body and Paint; and Kye Yeung, president of European Motor Car Works.Hendler said the award is given out in memory of March Taylor, who owned a collision repair facility in Kona, HI, and is especially meaningful to the association and the three presenters who were all friends of his. Taylor was known for living his life according to the Hawaiian word “Kina’ole,” which means “Doing the right thing, in the right way, at the right time, in the right place, to the right person, for the right reason, with the right feeling … the first time.” “March Taylor lived this, embodied it and more importantly, he instilled it in just about everyone he met,” said Hendler. “March didn’t say a lot but when he spoke, people listened.”When Taylor passed away in 2007, a memorial fund was set up in his name to provide the next generation of technicians a “step upward” through tool scholarships and mentoring opportunities.SCRS also created the Kina’ole Award, which is given every year to someone who reflects those same characteristics of Kina’ole. This award is less about an action, and more about the character of the recipient, and the embodiment of doing right in the industry in a way that harkens back to lessons taught by the late March Taylor.Dorn said March was always about helping new technicians enter the industry. “He taught me more than I could ever thank him for,” said Dorn. “He was a mentor and dear friend.”This year’s award recipient is Toby Chess, who has taught for I-CAR, worked at Kent Automotive, served on the SCRS board and presented regularly at CIC committee chairman.  Chess, who is recovering from a kidney transplant, was unable to attend the awards ceremony. Yeung shared insight about the close relationship Chess had with Taylor.“The friendship they shared was so golden,” said Yeung. “They worked as a team and knew each other so closely. When March passed, it left a void not only in our industry… but Toby took it the hardest.”Yeung said the award is about honoring a man who gave his life to safe repairs and educating the techs out there.“Toby’s conviction is so strong, making shops better and more profitable and seeing to it that all technicians out there follow OEM guidelines,” he said.

Repairify™ Unites Company Brands, Introduces asTech® Duo, Tru-Point ADAS Calibration System

As new vehicles are manufactured with complex electronic systems that require extreme precision to function safely, Repairify’s Chief Technology Officer Maurice Tuff said the company will continue to focus on providing solutions to ensure the electronic vehicle systems are returned to OEM specifications post-collision repair.Repairify, a portfolio company of Kinderhook Industries, recently made several announcements as part of its strategic initiative to support the collision repair industry. These include a rebranding of its company, the introduction of a new product, asTech Duo, and a process for validating if an aftermarket tool can or cannot be used in place of an OEM tool on specific vehicles within the car parc.“By growing our organization through the acquisitions of like-minded industry innovators, we have established a powerhouse of brands that are all playing critical roles in transforming the way today’s increasingly complex vehicles are repaired, serviced and maintained,” said Cris Hollingsworth, president of Repairify.“Repairify continuously provides innovative solutions to meet the evolving demands of the industry,” said Tuff. "We are now a full solution provider; once a vehicle is scanned, we identify the ADAS calibrations required and then provide tools necessary to perform the calibrations on-site, ensuring the vehicle is returned to OEM specifications.”Uniting Under the Repairify BrandLesley Sparkes, Repairify’s vice president of global marketing, explained Repairify was traditionally the holding name for the business, which operated as asTech and owned FleetGenix. Over the last year, the company has made four acquisitions: adasThink, BlueDriver, Mobile Tech RX and RED (EU).“All our companies were strategically acquired in order to deliver an end-to-end solution and uniting them under the Repairify name gives our customers a single trusted source they can rely on for the full repair process,” said Sparkes.The strategic initiative brings together the company’s six brands: asTech provides remote diagnostic and calibration services to collision repair shops. adasThink is a platform that integrates with a shop’s estimating system to identify required ADAS calibrations based on the estimate lines and provides the documentation needed for the repair. BlueDriver provides consumer aftermarket diagnostic scan tools and services. FleetGenix offers mobile/remote technicians for key replacement, pre- and post-vehicle scans, calibration and personal identifiable information removal services. Mobile Tech RX delivers an app for auto repair technicians to estimate, invoice, manage teams and capture data. RED (EU), based in the UK, is a distributor of advanced aftermarket diagnostic tools.Tuff said the goal is to build out an ecosystem where Repairify can provide shops with a beginning-to-end solution.“This will give shops the ability to fully understand that the vehicle has been properly serviced, calibrated and is safe to go back on the road,” said Tuff. “As a result, it makes it easier on a shop to not have to use multiple vendors, providers and tools, throughout the different parts of the process.”Tru-Point ADAS Calibration SystemWith the support of asTech’s 400-plus ASE and I-CAR certified master technicians, the company has been offering remote scanning to customers by connecting a device to the vehicle to obtain access to the OEM tools at the data center.“Our solutions, combined with our trained technicians, keep up with the ever-changing vehicle technology so the shop can focus on the repair,” said Tuff.To help shops perform static calibrations in-house, he said asTech teamed up with Snap-On to deliver the easy-to-use all-in-one Tru-Point ADAS Calibration System. The product, which combines camera technology, targets and advanced software, is currently being used by shops across the country and was on display in November at the SEMA Show in Las Vegas.“With cars becoming more sophisticated, more calibrations are necessary. Traditionally, shops have to send those out to the dealership and the car may be gone for days,” said Tuff.“We’re enabling our customers to do more calibrations in-house,” added Sparkes. “This greatly enhances efficiency resulting in a more profitable shop.”asTech DuoPrior to the SEMA Show, asTech introduced asTech Duo, a solution that provides local and remote scanning, diagnostics and calibrations for collision and mechanical repair as well as dealerships.“Our customers expressed the need for an integrated solution with access to both local and remote scanning options in one device,” said Tuff. "With Duo, we are pleased to deliver this choice to our customers, giving them the flexibility and convenience to safely and accurately complete repairs." Tuff said they were finding shops were buying aftermarket tools, unaware if they were accurate on a particular vehicle. As a result, the company began validating when an aftermarket tool is compatible with the OEM tool and when it is not.“We made a significant and ongoing investment in validating when a local aftermarket scan can be performed versus when a remote OEM scan is required,” said Tuff. “In all cases, we always leave the choice to the user which type of scan they perform regardless of our recommendation. The choice is always with the customer.”Moving forward, shops will have access to both a remote OEM scan supported by ASE and I-CAR certified technicians or a local OEM-compatible scan.Tuff said there was some concern in the market that the company was shifting away from OEM tools.“That isn’t true,” he clarified. “Customers always have the choice to use our OEM tools. Our focus remains on the safest and most accurate way to repair the vehicle. If a user would like to perform an aftermarket scan, with Duo, they know if it has been validated as OEM compatible for that vehicle before performing the scan.”Currently, the company uses more than 1,000 OEM tools, and Sparkes said that number is growing every day.In October, the company began offering the OEM scan report, in addition to the comprehensive diagnostic scan report that has always been provided.“This gives shops extra peace of mind,” said Sparkes.“The delivery of the original OEM scan report will provide our customers with an additional layer of confidence and transparency so they can remain focused on properly repairing today’s complex vehicles,” said Hollingsworth.The reports are also available in asTech Connect, which includes a mobile application for both iOS and Android. Connect allows customers to view the status of their devices, talk with master technicians in multiple languages and access invoices, reports and more.In November, Chris Chesney was hired as vice president of training and organizational development. In this role, he will establish a comprehensive training initiative for customers, industry partners, employees and the network of technicians throughout the global Repairify ecosystem.“As we look toward continued expansion of our global footprint, we are proud of the Repairify brand and the technology and expertise we’re bringing to the market,” said Tuff.

ALLDATA Introduces ADAS Quick Reference, Integrated AutoZone Parts Ordering, Instructor Toolkit

Since ALLDATA was established in 1986, the California-based company has prided itself on making it easier for technicians to access OEM information and procedures for safe and accurate repairs.Today, more than 400,000 technicians use ALLDATA for diagnostic tools, updated OEM information and shop management solutions.“We constantly upgrade our flagship products to give customers the online tools they need to run their shops more efficiently and with greater accuracy,” said Satwinder Mangat, president of ALLDATA.The company’s most recent updates include ADAS Quick Reference for ALLDATA Collision and ALLDATA Repair; integrated parts ordering from AutoZone in ALLDATA Shop Manager; and the Instructor Toolkit, a resource for the career and technical education segment.Autobody News reached out to Mangat to learn more about these recent additions and how they will benefit the collision repair industry.Can you share information about the new ADAS Quick Reference tool for ALLDATA Collision and ALLDATA Repair?Now that Advanced Driver Assistance Systems (ADAS) are standard on practically all new vehicles, shops need quick access to ADAS information to see the extent of OEM-required calibration and whether they can perform the procedures in-house or will need to sublet.Everything on the car affects ADAS systems. Repairs that were once considered routine will trigger multiple ADAS system requirements due to advanced safety and convenience features.Camera-based system technology will require calibration due to tire replacement, suspension work, engine modifications, steering system repairs, outside rear-view mirror replacement or even a simple wheel alignment.Calibrations may include static procedures in the shop or dynamic procedures on the road that can take an hour or more to perform.That’s why we added ADAS Quick Reference to ALLDATA. Now, just one click takes the estimator or technician to the latest ADAS information for that specific vehicle year/make/model/engine. Knowing what calibrations may be required is critical to vehicle safety.What are some of the main benefits of ADAS Quick Reference?Because ALLDATA publishes more OEM vehicle data---covering 44,000-plus vehicles, 95% of all vehicles on the road today---more frequently---we publish new data daily---shops can now access the latest ADAS information from within ALLDATA Collision, direct from the OEMs.Selecting "ADAS Quick Reference" takes the user to the latest ADAS information for that specific vehicle, where they can link directly to the ADAS System/Component by name, such as Backup Camera or Lane Departure System.The ADAS Quick Reference feature also provides the location of the component that may have been damaged in a collision and identifies component removal/replacement that could result in extra labor for calibration or sublet costs based on procedure complexity. In addition, it includes basic calibration information, required tools and prerequisites for servicing ADAS components.With a range of ADAS now standard on new vehicles, it’s critical that service writers and technicians be prepared for any vehicle that comes into their shop. The new ADAS Quick Reference tool does just that; it gives them one-click access to the latest ADAS information in ALLDATA, straight from the manufacturer.ALLDATA Shop ManagerWhat prompted the development of the integrated parts ordering from AutoZone in ALLDATA Shop Manager?AutoZone, ALLDATA’s parent company, is a leading retailer and distributor of automotive replacement parts and accessories, with more than 6,000 stores in the U.S. Providing seamless access to AutoZone’s massive catalog of quality parts in ALLDATA’s industry-leading software–all on one platform–is a huge time-saver for customers.What are some of the main features/benefits?ALLDATA Shop Manager makes it easy to generate the estimates, repair orders and invoices that are essential to every shop’s workflow. With our latest update, shops can check availability at their local AutoZone store and order parts in real time.Users can toggle between shop documents and OEM information and procedures without punching out to a separate browser, saving time and boosting accuracy. The new update makes it possible for users to add AutoZone parts to the estimate, check local product availability, order parts directly from Shop Manager with no calling required and receive the parts order.We are constantly searching for additional ways that help shops save time and add value in every aspect of the repair and parts procurement process. By integrating AutoZone parts ordering into Shop Manager, customers can quickly check local availability and order parts from AutoZone with just a few clicks, saving customers valuable time and resources.ALLDATA Instructor Toolkit coverCan you tell us about Instructor Toolkit and why it was created?Attracting and retaining quality, trained technicians is one of the biggest challenges facing our industry. ALLDATA provides automotive repair information software, and teaching students how to use the same technology that the pros use is essential to prepare them for success in the marketplace.The Instructor Toolkit is a turnkey resource for automotive and collision career and technical education (CTE) programs that was developed in partnership with the Automotive Service Excellence (ASE) Education Foundation. It makes it easy for auto repair educators to create curriculum that meets ASE accreditation standards for researching OEM repair information.For schools to attain ASE accreditation, they must follow the task list in the ASE standards guide. Each Instructor Toolkit follows this format, with tasks for students that mirror the task list at the end of the ASE standards guide. It also includes specific vehicle examples (year/make/model/engine) and the navigation path to the required information in ALLDATA.To ensure accuracy and consistency with ASE standards, the Instructor Toolkit was developed with the guidance of an advisory panel that includes educators in both general repair and body work, ranging from first-year instructors to I-CAR Platinum master instructors and ASE certified master technicians, including public, for-profit, high school, and college-level institutions.“We know this [using OEM repair information] is an important skill for students to learn, but it has always been very difficult for the instructors to put it into motion on a regular basis, and with consistency," said George Arrants, vice president of ASE Education Foundation. "The scenarios that you've created in each one of the lessons are directly related to the ASE’s standard guide tasks. You’ve given them a solution in a box, and it is over-the-top awesome.”Is there anything else ALLDATA has recently introduced to meet the needs of the industry?ALLDATA Diagnostics, our scan tool system, is now available on all platforms, including iOS. It turns any tablet, including an iPad, into a professional-level scan tool with the power of ALLDATA built in. Users can run unlimited vehicle-wide scans---at no additional cost---access DTCs that link to relevant OEM repair info, record live data and more.For more information about ALLDATA, visit the website.

What to Expect at SEMA 2021

Automotive celebrities, vehicle debuts from major OEMs and the latest developments in equipment and tooling will all be part of the SEMA Show this year in Las Vegas, NV.Following last year’s virtual event, SEMA 360, show organizers have planned a live show this year with COVID-19 protocols in place. The four-day event takes place Nov. 2-5 at the Las Vegas Convention Center.SEMA, the Specialty Equipment Market Association, was founded in 1963 and represents the $47.89 billion specialty automotive industry. The SEMA Show is a trade-only industry event.This year’s show is the first industry-wide, in-person gathering since 2019, and will include more than 1,300 exhibitors, approximately 1,000 vehicles and nearly 50,000 registered buyers to date.“With two years’ worth of innovation, the SEMA Show is going to be jam-packed with excitement,” said Tom Gattuso, SEMA VP of events. “We never know what we’ll see at the SEMA Show until we get on the show floor." There will be exhibits in four halls, including the newly constructed 1.4 million-square foot West Hall.The Collision Repair & Refinish exhibits, typically located in North Hall, have been relocated to the South upper hall. This section will showcase collision repair products, paint booths and equipment, tools, accessories and software and management programs.Show organizers said SEMA is 100% committed to delivering a great show. Face masks are expected to be required while indoors during the event. However, there is currently no requirement to show proof of vaccination or a negative COVID-19 test.The SEMA Show App has been updated for 2021 and provides access to a comprehensive list of exhibitors and events throughout the week.One of the new additions to the show this year is SEMA Member Central, where attendees can learn about the association and its membership.Several industry events will also take place during the week, including the MSO Symposium on Monday, Nov. 1, at the Mandalay Hotel, and the Collision Industry Conference (CIC) on Tuesday, Nov. 2 at the Westgate Las Vegas Resort & Casino. An in-depth report on both events from John Yoswick will be posted online and included in an upcoming issue of Autobody News.Featured events during the week:New Products Award BreakfastLocation: Westgate Paradise Event CenterWhen: 7:30 to 8:45 a.m. Tuesday, Nov. 2Prior to the official opening of the SEMA Show, at 9 a.m. Nov. 2, Jay Leno will help kick off the event as the featured guest of the New Products Breakfast, where the best new product award winners are announced. Awards are presented in 16 categories, including Collision Repair & Refinish, and will be showcased in the New Products Showcase throughout the week. Ed Attanasio will share details about the New Product Award winners in an upcoming article posted online and featured in the print issue of Autobody News.To register for the free breakfast, visit www.semashow.com/banquet.EducationMore than 70 free and 30 paid educational seminars will take place Monday through Friday.The Society of Collision Repair Specialists (SCRS) will hold its Repairer Driven Education Series, featuring industry experts. The courses are designed to deliver relevant content covering industry trends and best business practices. Highlights include the OEM Collision Repair Technology Summit on Thursday, Nov. 4, and the IDEAS Collide Showcase presentations on Friday, Nov. 5.Collision Repair StageLocation: LVCC Upper South HallExperts will be on-hand to answer questions and lead interactive demonstrations at the Collision Repair & Refinish Stage. There will be free hands-on welding demos and presentations by I-CAR, SCRS and OEMs.Celebrity AppearancesCelebrity appearances will take place throughout the week.Ant Anstead, host of "Celebrity IOU: Joyride," will showcase some of his favorite vehicle builds. These consist of a custom 1962 Buick converted into an electric car in collaboration with American actor James Marsden, and a Radford Lotus Type 62/2 Gold Leaf car built in collaboration with Jenson Button, 2009 Formula One world champion and Super GT Series champion.Other vehicles will be on display, such as a new 2023 Nissan Z and a 1953 Corvette-inspired carbon fiber concept car by Dave Kindig from the MotorTrend show "Bitchin Rides."Chip Foose's automotive designs and sketches will be on display at the Las Vegas Convention North Hall along with 20 of his custom vehicle creations, including RIDLER winners and "Overhaulin'" builds.For a list of celebrity appearances, click here.Battle of the BuildersThe SEMA Battle of the Builders® competition recognizes the accomplishments of SEMA vehicle builders. Enthusiasts can learn about the builders and their vehicles.SEMA ElectrifiedLocation: LVCC North HallAt SEMA Electrified, the industry will have an opportunity to view emerging technologies advancing and redefining the performance aftermarket. These include custom electric-vehicle conversions as well as parts and products.SEMA Industry Awards BanquetLocation: Westgate Paradise Event CenterDate: Thursday, Nov. 4Time: 6 p.m. reception---Westgate Palm CourtThe SEMA Show Industry Awards Banquet is the annual celebration of the specialty-equipment industry. Industry awards will be given out during the event and SEMA Hall of Fame inductees will be honored. The headline entertainment will be Light Balance, a Ukrainian LED dance troupe featured on "America’s Got Talent," as well as actor and comedian Adam Ferrera.SEMA IgnitedLocation: LVCC West Hall Parking LotDate: Friday, Nov. 5Time: 3 p.m.The show will culminate at SEMA Ignited, the official after-party, which takes place in the Convention Center West Hall Parking Lot. Free to all credentialled show attendees, the event will include food, entertainment and drifting demonstrations.SEMA CruiseLocation: LVCC Silver DriveDate: Friday, Nov. 5Time: 4 p.m.When the SEMA Show closes at 4 p.m. Nov. 5, vehicles from the event will parade toward the West Hall Parking Lot and SEMA Ignited.Qualified individuals employed within the automotive aftermarket industry may register for the SEMA Show online at www.semashow.com or onsite at the Las Vegas Convention Center at Main Registration, located in Lower South Hall East.

Shop Strategies: Marketing Effort at Tony’s Body Shop Pays Off

Tony and Isabel Flores opened Tony’s Body Shop in Oxnard, CA, in 1965. Considered to be hard-working business people by their friends and family, the couple taught their children good work ethics from an early age.Their son, Jay, found they were struggling financially and began working at the small mom-and-pop shop after graduating from college. He now operates the family business with his wife, Evelyn, their children, Jayson, Jaycob and Jasmine, Jay’s older sister, Maria, and his cousin, Adrian.The family business is located about two miles from where it originally opened more than 50 years ago, and the Floreses pride themselves on providing a quality repair to customers by following OEM procedures.Autobody News talked to Jay about the challenges small businesses face and how Tony’s Body Shop has been successful through its marketing efforts.Tony’s Body Shop is located in Oxnard, CA, about two miles from where it originally opened more than 50 years ago.What challenges are small businesses facing right now?One of the biggest issues I see in the industry is that business owners truly don’t understand financials and know if the boat is sinking or floating. They don’t understand their true costs to operate so they may be giving the farm away and not even know it.About 20 years ago, I joined the AkzoNobel Acoat Selected program to learn about financials. I was educated about profit and loss statements, balance sheets and writing a business plan and marketing plan. The program really helped me and I’m still part of it today. It allows me to meet with other shop owners and talk about what’s happening with the industry so I know what I need to do to stay current.I also participated in the 3M ARMS course, which is an older class that talked about capturing jobs when they come to your door and basic business practices. It was awesome and I learned a lot.I encourage people to leave their cubby or shop and go somewhere to sit in a classroom and learn. By talking to industry participants and touring shops, it helps you build a better business. Business is business; it doesn’t matter if you sell pizza, work in a janitorial company or in collision repair, you need to understand basic accounting.Why is it important to create a business or marketing plan?Many businesses struggle because they have no business plan or marketing plan. They haven’t sat down and thought things through and don’t have accurate knowledge about what it takes to operate a successful business.Tony’s Body Shop prides itself on providing a quality repair to customers by following OEM procedures.In order to survive in business, you need a marketing plan. How else are you going to bring people to your front door? There is no such thing as luck. It’s hard work and planning. You’ve either written a marketing plan and are successful, or you failed the plan and are struggling.I recommend writing a two-page marketing plan outlining how you are going to get customers to the front door. Marketing is like a diamond that has many facets.What types of marketing have you implemented at Tony’s Body Shop?I started using television as part of my marketing plan a long time ago. When I moved to this building 15 years ago, it was twice the size of my prior location and I wanted to ensure all of my past customers knew we moved. I didn’t want to lose my customer base. I’m no different than an insurance company that wants customers to renew and re-sign their policy. I’m looking for customers to come back and tell their family and friends about us.I’ve been successful with it so I’ve kept it going. My father was once told by a man in Argentina that if you do the best job you can for the car you are working on today, don’t worry about where the next car is going to come from. In essence, he meant that if you do a good quality job, you’ll always be busy. It’s a very basic concept but so true.In addition to television, what other types of marketing have you found helpful?There’s no silver bullet. There are many facets. As the writer Tom Franklin said, “The spider that weaves the largest web catches the most flies.” In marketing terms, it simply means that the shop that “weaves the largest web” will capture the most business.The Aluminum Room at Tony’s Body Shop.One area where the majority of shops get an “F” is having a really good website. It seems everyone you know can build a website but people who truly understand SEO are hard to find. A professional website should include a blog or content about your business, make it easy to find the address and phone number and look good on a phone, tablet and computer. I found it really helpful to have access to my website so I can fix an error and add content without being held hostage by a company.Marketing your business can even include simple things like writing thank-you notes to customers, spending time doing follow-up phone calls to ensure they had a good experience and giving them a treat when you deliver the car. We give customers a bag of peanuts with a tag that says, “Courtesy of Tony’s Body Shop.” We take a proactive approach because we want our customers happy and coming back.Having good reviews is very important. People looking for a body shop are going to Google you and my business philosophy is that customers are always right even if they are wrong. You want customers coming back to your business and telling others about it. Of course, there are exceptions when a customer is too hard to deal with but that doesn’t mean you have to fix that car the next time.Overall, it’s important to make customers happy so they tell others about the great service they received and write a good review about it.The majority of time customers are good people and if you do a good job and make sure the car is repaired correctly, that customer will tells his or her family, friends and coworkers about their experience.I have built a tremendous following in Ventura County where I am located. In one of my commercials, we say, “Ask around. Ask your friends and neighbors where the best place is to repair your car.” I can pretty much guarantee if not all three, two out of the three will point you in my direction. That doesn’t happen overnight. It takes years of effort and includes everything from how you answer calls, to how you repair and deliver the car.The team understands the importance of assisting customers with the claims process.What advice do you have for shops as future vehicles evolve?As time passes and a totaled car is replaced with an ADAS vehicle, I believe the claim count is going to be less. As a result, shops owners need to focus on their capture rate and ensure they are spending time with customers up-front to make sure all their questions and needs are handled.A lot of people fail to write a marketing plan because they are on DRPs that refer work to the shop. The challenge is that DRPs have evolved. In my experience, DRPs used to allow shops to provide a safe and proper repair. However, with cars like Tesla and all of the ADAS features in new vehicles, the cost of repairs has skyrocketed.I’ve found that the goal of most insurance programs is to minimize repair cost. That can be challenging with you have a car with ADAS features. Inherently, it can be viewed as two competing goals: lowest cost possible versus highest safety possible when OEM guidelines are followed. For this reason, Tony’s Body Shop has removed itself from most insurance programs that do not commit to OEM guidelines.The John Eagle Collision Center lawsuit in 2017 changed how auto body shops do business. We are held liable for all the repairs we perform, even after the car is sold and ownership transfers.In today’s world of complex cars geared to crash avoidance and occupant safety, a safe and proper repair following OEM repair procedures is the only way to continue to stay in business. Returning a car to its pre-accident crash worthiness for the safety of the customer and their family is our only option. This is why Tony’s Body Shop has chosen to be certified by many different vehicle manufacturers.I often ask people if they would repair an airplane or rebuild its engine without following the manufacturer’s repair procedures. Of course not; people’s lives are at risk. Then why is a car any different?Previous columns in the "Shop Strategies" series: California MSO Launches Kustomine Software to Help Collision Repairers Work More Efficiently Award-Winning Fix Auto Chicago Body Shop Owner Shares Best Business Practices

Behind-the-Scenes DCR Systems Tour Sponsored by AirPro Diagnostics, AkzoNobel & Car-O-Liner®

Members of the collision industry recently had an opportunity to tour the DCR Systems location in Mentor, OH, prior to the July Collision Industry Conference (CIC) in Cleveland.Founded in 2004 and owned by CEO Michael Giarrizzo, DCR Systems is known for its progressive thinking and operating in a process-centered environment.The company helps dealerships outsource their auto body shops by having DCR team members run daily operations while being co-branded with the auto dealer. Currently, DCR Systems operates nine production cells in seven dealer-based collision repair facilities in four states: Ohio, New York, North Carolina and Massachusetts.The tour was sponsored by AirPro Diagnostics, AkzoNobel and Car-O-Liner® and included transportation, dinner and a behind-the-scenes look at the Mentor facility.Pictured, left to right, are John Eck, GM; and Darrell Amberson and Jason "Buck" Zeise, both from LaMettry’s Collision, Glass and More.Sponsors Showcase DCR Systems Mentor, OH, Facility“One of our core principles at AirPro Diagnostics is education and includes educating the repair community on safe repairs and processes,” said Michael Quinn, president of AirPro Diagnostics. “Knowing Michael Giarrizzo and his family for over 20 years, I’ve watched DCR Systems evolve into what it is today---a process-oriented operation. We couldn’t miss the opportunity to share their highly-disciplined approach with the industry at large in attendance at CIC.”Quinn said the event was very successful and included leadership from multiple organizations, including vendors and representatives from GM as well as other auto body shops.“They were extremely impressed with the operation and took notes,” he said. “It was great working with the other sponsors to put this together.”“As a long-term partner with Michael Giarrizzo and DCR Systems, AkzoNobel thought that while the industry was meeting in Cleveland for CIC it would be a rare opportunity to showcase what Michael and his team have accomplished,” said Nada Jokic, business consulting services manager for the West Region at AkzoNobel. “The feedback was extremely positive as many had heard of DCR but few had actually seen the systems and facility in person.”Tim Ronak, senior services consultant for AkzoNobel, said the ability to share information about DCR Systems and the processes that support proper repairs aligns with AkzoNobel’s desire to educate the industry.“Process-centered environments are the key to optimizing throughput efficiency while ensuring an OEM repair methodology is central to repair decisions,” said Ronak. “Michael Giarrizzo has created a repeatable and documentable process to support OEM procedure repair methods and is successfully executing with this model daily.”Pictured, left to right, are Jeff Hendler, J.D. Hendler/Associates; K. Michael Bradshaw, K&M Collision; Todd Hesford, Mission Viejo Auto Collision; Kye Yeung, European Motor Car Works; Amber Alley, Barsotti’s Body & Fender; Tony Adams, AkzoNobel; Tim Ronak, AkzoNobel; and Jordan Hendler, Admin Concepts.Doug Bortz, sales manager of Car-O-Liner, North America, said the company welcomed the opportunity to sponsor the event, which was overwhelmingly attended.“DCR Systems and Car-O-Liner have a long-standing relationship based on one synonymous philosophy---to create efficiencies that contribute to healthier work environments and better customer service,” said Bortz. “There is a continued desire for industry notables to participate, learn and share insights to elevate industry processes and ultimately serve all collision repair shops and customers at the highest level.”DCR Systems Team Shares Process EfficienciesAfter gathering for an Italian dinner, DCR Systems representatives took various groups through the facility highlighting the many process efficiencies they’ve developed and implemented into their daily work environment. Attendees also viewed the Symach equipment used in the facility.Giarrizzo said Symach technology offers a very predictable and accelerated drying process that helps workflow run more consistently.“We are proud of our team’s vision for this industry, and it was an honor to share what we are doing with so many in the industry,” said Cheryl Boswell, CFO and managing partner of DCR Systems.“We have an amazing team and we are passionate about what we do,” said Giarrizzo.Many of the company’s technicians are homegrown.“It’s really gratifying,” Giarrizzo said. “It warms my heart when you take somebody who has no clue what they could accomplish and within a couple of years, he or she can reach a master level of technician and do things and create a lifestyle they didn’t think was possible.”Boswell said Carey Hehr, pre-op specialist at Classic Accident Repair Center, is one example of an employee who has developed into a skilled writer and production enthusiast.Hehr joined DCR Systems eight years ago as a customer service representative (CSR).“I enjoyed helping customers and making sure they understood their rights when getting their cars fixed,” Hehr said.After assisting the company’s dealer partner and addressing warranty claims and small jobs, she realized she enjoyed writing and wanted to learn more.“With this amazing company they gave me every opportunity to grow and learn,” said Hehr. “I now have been writing for three years and enjoy every day.”Pictured, left to right, are Jeff and Jeanne Silver, both Hall of Eagles inductees, and Cheryl Boswell, DCR Systems.During the tour, Mandy Wynn, national training and support manager, and Arynne Giarrizzo, central claims specialist, shared information about DCR Systems’ production process.“The patented production process at DCR Systems is unique in that it streamlines all of the variables associated with collision repair by eliminating waste, rework and stress, leading to increased profitability,” said Wynn.“It also empowers the team and allows everyone to continuously and creatively improve processes throughout,” added Arynne.Wynn first described the pre-op phase of the process. Here, all the variables related to the repair are thoroughly researched, investigated and discussed, so a one-time parts order can be placed before vehicles are put in the production line.“Pre-op is vital to ensure continuous flow in our production line,” said Wynn.Arynne said the production line is able to move continuously because it tells employees where they need to work.“The team recognizes where there may be a potential bottleneck in the production line and our team adjusts where they need to work,” she said.Wynn and Arynne also explained how the process differs from other collision repair facilities. One big difference, according to Wynn, is the strict structure and validations the company has in place during every step in the process.“Despite the random working environment, we have the same process that all cars go through to achieve consistent quality and performance on every single vehicle. This allows us to not only produce consistent quality but also an OEM-guided safe repair,” she said. “How we ultimately benefit is in what our customers say about us and our passion to fix vehicles.”Pictured, left to right, are Michelle Sullivan, Kathy Coffey, Carol Romero and Nada Jokic from AkzoNobel.Arynne described how the process enables the team to crosstrain.“This allows us to use resources where the work is needed,” she said. “We train team members and educate them on OEM manufacturers’ guidelines to ensure their greatest potential.”Andy Warren, store support specialist, explained the virtual huddle to tour attendees.“The virtual huddle is the last step prior to the repair plan being finalized,” said Warren. “It is basically an estimate review but done virtually.”Using FaceTime, virtual huddles are used every day throughout the company. The repair planner goes over the repair plan that shows the damages to the vehicle. Then, it is scrubbed for any items that may have been overlooked and verified all repairs are being done per OEM guidelines.“Performing the virtual huddle on each job is important for us because having that extra set of eyes glance over each repair plan is so crucial in our world,” said Warren. “Repair planners often get pulled away and have plenty of distractions during the day, and if we can catch something on the front end, then we can keep our process flowing and not lose valuable days on the back end.”He said it has also helped DCR Systems by having someone verifying all stores are performing OEM procedures.Another highlight was learning about the DCR Claims Portal, developed by Warren and Harley Wegman, repair plan specialist.Dave Martin, operations director, said the DCR Claims Portal is a revolutionary interface that allows for a complete claims settlement package and has myriad benefits for all facets of the repair industry.This includes a shop looking to make sure they have assembled all the documentation needed for a repair and adhering to OE certification programs, an insurance company looking to settle a claim for a policyholder or a subrogation claim, and a customer searching for a better understanding of what will be done to their vehicle.“The application dynamically aligns the work to be done with the corresponding evidence in a single view,” said Martin. “It is the most simple and intuitive way to present the information for a repair and eliminates the countless hours spent trying to decipher buckets of documents and photos to specific repair operations by aligning all of that for the user.”Pictured are Winston Cover, left, AkzoNobel, and Petra Schroder, right, “Collisionista.”He said the assembly of the portal is a great self-check on the completeness of the repair plan.“It helps ensure that your team has pulled together all of the necessary information to restore the vehicle per OE specifications once up-front rather than multiple times when requested by insurers throughout the repair process,” he said. “This results in an impressive time savings overall.”The development of the portal was born from the idea of continuous improvement. DCR Systems had a virtual portal prior to this version, but Martin said it did not meet the company’s needs to streamline its process.“The portal is a prime example of the persistence and ingenuity of our team to come up with better ways of doing things, even when something doesn’t appear 'broken' in the first place,” he said. “It demonstrates what team members can accomplish when leadership encourages them to run with some of their ideas.”Most of DCR Systems’ processes have been created by team members. Arynne said working in a team-based environment empowers everyone to make continuous improvements.“We have a team of people who are game changers in our industry and we have a passion in what we do in collision repair,” said Wynn. “It’s a passion that’s contagious, especially when you have leaders such as Michael Giarrizzo and Cheryl Boswell.”Wynn said it’s not just about fixing a vehicle to collect a check at the end of the job.“We want to put safe vehicles back in customers’ hands, vehicles that we would trust to put our family and friends in and know that we have repaired them the way the manufacturer of that vehicle would have wanted it done,” she said.

3M™ Performance Spray Gun is ‘Go-To’ Gun at Santa Margarita Auto Body Shop

Nearly eight months ago, Mitch Barrett was researching spray guns as the head painter at Santa Margarita Auto Body in California. He learned about the 3M™ Performance Spray Gun from Stan Ehresmann, a regional business manager at 3M.“He encouraged me to try it and wanted to know what I thought,” said Barrett. “I’ve used it every day since then.”In addition to being cost-effective, Barrett said ease of use and dependability are of the utmost importance when choosing a spray gun, and the 3M gun meets both those requirements.“This gun is great,” said Barrett. “You can feel comfortable while using it and you don’t feel like anything is going to go wrong. It’s my ‘go to’ gun.”Barrett estimates he has probably spent thousands on spray guns over the last decade. Many of them have been complicated to set up and use.With the 3M™ Performance Spray Gun’s simple design, he believes someone with less experience can use the gun and deliver a consistent and professional paint job.Since using the gun, Barrett has found it is extremely versatile. With a change of the replaceable atomization heads, he can spray a full range of coatings, including primer, sealer, basecoats, topcoats and clearcoats.Because the paint doesn’t pass through the body of the spray gun, cleanup is quicker and easier than a traditional spray gun.“I’ve painted everything from a 1990 Honda Civic to a brand new Bentley,” he said.With multiple jobs taking place simultaneously at the collision repair facility, Barrett said it can get overwhelming at times.“I may have six bumpers for six different cars in six different colors. Having a gun like the 3M™ Performance Spray Gun allows you to pop on every different color really quickly,” he said. “This makes the process go a lot faster, with a shorter amount of time spent in the booth.”Dennis Barrett, center, owner of Santa Margarita Auto Body in California, and his sons Tyler, left, and Mitch, right.Established in 2006, Santa Margarita Auto Body has a total of seven employees. Mitch and his brother, Tyler, work at the shop, owned by their father, Dennis.With its versatile design, the 3M™ Performance Spray Gun can be easily converted to spray from either a gravity cup or pressurized source for bulk spraying applications like RVs and fleet vehicles.The guns are made from an advanced impact-resistant, stainless steel-reinforced composite material to reduce its weight by up to 50% compared to conventional metal spray guns.“That’s important because any time you are working with plastic and air, it can tend to generate some static,” said Rob Blue, collision customer specialist, 3M Automotive Aftermarket Division. “The 3M™ Performance Spray Gun is all about precision."He said the 3M™ Performance Spray Guns are easy to clean, and the company is receiving good feedback on transfer efficiency and coverage.“The transfer efficiency of most metal guns is in the range of 65 to 72%,” said Rob. “Third-party testing showed a high 78% transfer efficiency while spraying automotive base coat, exceeding the other leading metal spray guns tested.”He said this can equate to potential savings for shops on their coatings.Prior to the guns being released in 2020, a series of field tests were held with auto body shops across the country.Brandon Russell, left, and Rob Blue, right, both collision customer specialists, 3M Automotive Aftermarket Division, with Mitch Barrett at Santa Margarita Auto Body.“A lot of the painters in the industry like the lightweight 13.3-ounce gun because they are painting all day long,” said Brandon Russell, collision customer specialist, 3M Automotive Aftermarket Division. “They also love how easy the cleanup is.”The spray gun weighs 8.4 oz with gravity nozzles and 13.3 oz with pressure nozzles to enhance comfort without sacrificing performance or durability, according to Russell.“Innovative quick-change replaceable nozzle technology means cleanup can be as simple as a twist and a wipe,” he said. “Every time a painter puts on a fresh nozzle, it’s like getting a brand new spray gun.”With quick-change replaceable 3M™ Performance Gravity HVLP Atomizing Heads, cleanup involves twisting the locking collar, removing the atomizing head and wiping the needle clean.“The 3M™ Performance Spray Gun is so much different than the other guns I’ve used,” said Barrett. “It’s lighter, feels good in your hands and you just know that you are going to come out of the paint booth with a job well done.”

Automotive Industry Trend Continues Towards Use of Lightweight Materials

Since the early 20th century, steel has been the material of choice by auto manufacturers worldwide. Almost every vehicle model has been designed using steel due to its strength, cost-effectiveness, workability and availability.“Automakers are now moving away from the use of mild steel, which was a core substrate used for automotive construction for a long time,” said Ryan Mandell, director, Claims Performance, Auto Physical Damage Solutions for Mitchell International.Instead, OEMs are increasingly using lightweight materials such as aluminum, high-strength steel, ultra-high-strength steel and plastic.Ryan Mandell, director, Claims Performance, Auto Physical Damage Solutions for Mitchell International.Mandell has worked in a variety of industry segments over his career. He joined Progressive Insurance as an adjuster after graduating college in 2004 and then worked for a medium-size MSO, Precision Collision Auto Body, based in Washington. Before he was hired by Mitchell in 2017, he was in charge of five wrecking facilities owned by B&R Auto Wrecking in the northwest for four years.Autobody News talked to Mandell about the use of lightweight materials in current and future model vehicles and how this shift will impact collision repairers.Why are automakers moving away from the use of mild steel and using lightweight materials?Manufacturers are moving away from the use of mild steel for a couple of reasons. First, they want to improve fuel economy in response to the National Highway Traffic Safety Administration (NHTSA)’s Corporate Average Fuel Economy (CAFE) standards, which regulate how far vehicles must travel on a gallon of fuel. The current requirement is for automakers to raise the average fuel efficiency of new cars and trucks to 54.5 miles per gallon by 2025.With an increased focus on manufacturing electric and hybrid vehicles, lightweight materials are being used to offset the weight of the batteries. Many people believe electric cars are lightweight because they don’t have an engine, but lithium-ion batteries are really heavy.According to a study conducted by a global transportation company named Kar-Tainer, the company found that if you look at the average weight of an internal combustion vehicle versus an electric one, the electric vehicle on average was a little over 400 pounds heavier.This Audi structure at the SCRS booth during SEMA consists of stamped and extruded aluminum with carbon fiber reinforcements. Photo by Tim Ronak.Lithium-ion batteries have a low energy density ratio. In order to produce the kind of range and performance and be competitive in the market, you have to have a large battery. Until we get to the point where we’re using solid-state battery technology with a higher energy density, this will be the case for some time.The shift away from steel is also about improving crashworthiness. A university study compared structural aluminum to mild steel, which has been used in structural applications for an extended time. They found that aluminum absorbed twice the crash energy than steel.Can you tell us about the trend toward lightweight materials and if it’s expected to continue in the future?The use of lightweight materials has ramped up over the last decade. When I worked in a body shop in 2008, the incidents of aluminum in our facility were minimal. By the time I left in 2012, it was becoming more common.Looking at Mitchell data from our estimating customers, we see a couple of percentage points growth every year in terms of the major component parts constructed of these types of materials.Looking ahead, it is predicted that this trend will continue to evolve. A study conducted by IHS Markit showed that over the next 10 years, we’re going to see high-strength steels have higher percentage content in vehicles than mild steels. Higher tensile strength steels are fired at higher temperatures, which produces more rigidity, so the material is not only lighter, but also stronger.How is this shift expected to impact collision repairers?As manufacturers continue to use more non-traditional materials, it will ultimately impact collision repairers. When Ford manufactured the all-aluminum F-150 in 2015, there was much discussion around the use of this material. As a result, some collision repairers have already set up their facilities to accommodate aluminum repair with a clean room and dedicated tools, dust evacuation systems, etc.In addition to aluminum and lightweight steel, I think we’ll also see a shift in the use of composite plastics. All these changes are likely to affect the repair versus replace decision-making process. Certain materials are simply going to create a different pattern of damage than steel.With some parts of the car comprised of ultra-high-strength steel, for example, a repair is prohibited because it will ruin the vehicle’s structural integrity. Other parts, such as composite plastics and even carbon fiber, can be repairable in certain instances but this is rarer than if the panel was comprised of mild steel.The properties of the metal in the vehicle dictate how it will respond in an accident. Because aluminum becomes more brittle when impacted, it’s more likely that it will crack versus deform. When mild steel is impacted, it dents. It deforms the energy and continues to travel through the rest of the car because that energy hasn’t been dispersed quickly enough.When you have something that cracks, that energy disperses much more efficiently. If you have a fender with a dent, it might be repairable; however, it probably can’t be fixed if it has a crack.Take the 2018 Audi A3. There’s an A3 with a gas engine and an Audi e-tron, the plug-in electric vehicle. With the gas engine version, the fenders are made of mild steel. The fenders on the plug-in version are aluminum. The front ends look identical and there is no difference cosmetically.However, when those cars are in an accident and subjected to impact, the fenders are going to respond very differently. There will be different patterns of damage simply due to the materials. That’s at the core of why this is important.The chief engineer of the Ford Explorer, Bill Gubing, said that weight was a factor in every decision they made on the 2020 Explorer, according to FordAuthority.com. The engineering team looked at every part and how they could achieve weight savings and still achieve the same type of performance or better in a crash test. Ford uses aluminum in the 2020 Explorer, but it also uses steel, magnesium and plastic.This is a great example of how automakers are looking at all the components in the vehicle to determine how it can be made lighter. For repairers, this means the opportunities for fixing the components in a collision repair setting are reduced. You don’t have as much decision-making capability due to the materials being used. Subsequently, your potential profit margins are reduced and cycle times will likely increase.How do you recommend collision repairers educate themselves and prepare for these changes?As we see the use of these mixed materials increase, understanding the materials and the makeup of vehicles is key. In addition to having the proper tooling and equipment, training is critical. Although it can often be challenging to do in a shop environment, over the last 18 months during the pandemic, many shops have had more time to educate technicians. It’s also important to include customer service representatives, estimators and managers.I-CAR is going through a revamping of its content, which will be very valuable for the industry. There are also a variety of webinars and classes available that can be helpful.A huge component of education involves referencing the OEM repair procedures, which are changing all the time. That’s why we are working hard at Mitchell to integrate those in the estimating platform so it’s not so cumbersome for shops to do that research.Shops also need to set appropriate expectations with customers. This starts with the estimating process. When writing the initial estimate, it’s important to educate owners of newer model vehicles about the types of materials used.Consumers are unaware of many of these changes and don’t understand the impact of the materials when they are in an accident. Having those types of conversations up-front is an opportunity for collision repair facilities to put themselves in a position where they are the experts and demonstrate they are looking out for their customers’ best interests.We’ve also seen interest from insurance clients wanting to understand more about how vehicles are constructed and the decisions that need to be made.What are some of the opportunities available for repairers?In the future, I think there will be more specialization in the market. By training employees to repair vehicles with these types of materials, shops can create a healthy profit center. It’s not going to be for every shop but depending on the market and the customers you serve, there could be some opportunities, whether you are an independent repair facility or part of a consolidator.

Why Online Customer Reviews Are More Important than Ever

Every transaction has a value in terms of both human resources and money, and online reviews from customers play a significant role in both for any business.Many auto body shop owners and managers use review sites to connect with customers and get feedback. But many are still skeptical about the authenticity of the reviews posted.Before the online consumer review industry gained momentum roughly 18 years ago when Yelp was founded, people had to rely on recommendations from friends, neighbors and associates. Word-of-mouth worked pretty well, but now we can access hundreds of reviews within minutes, rather than polling the mailman or the checker at your grocery store for the best restaurants, movie theaters or body shops.As a body shop owner or manager, ultimately, all you want is to acquire new customers, retain existing ones and increase revenue. But like many, you're probably a little overwhelmed by the speed at which technology evolves and how to respond to it.Recently, I saw this powerful quote from the Harvard Business Review: "Many companies need to dramatically shift their marketing strategies to account for the rising power exerted on future customers by the opinions of existing customers."I had a friend who used to say opinions are like a certain orifice we all possess. It still applies, but now everyone's opinions seem to count more than ever, especially online.For companies that do an exemplary job and garner high CSI ratings as a result, online review sites are a wonderful thing. On the other hand, what happens if you're a good company, but you're not getting a significant number of accolades from the public---or, worse, negative bogus reviews from competitors and disgruntled former employees?Megan Fulkerson, managing partner and strategist at 3P Marketing in Evansville, IN, works with body shops and other small businesses on their online reviews and how to set them up for success.“While managing reviews can seem daunting, taking care of your customers and providing safe and proper repairs is what we try to do every day,” she said. “Taking things one step further and by having CSRs or estimators ask the customer to provide a review is a great way to have current responses added to your list of online reviews.”Online reviews are crucial in the collision industry because people want to be comfortable before they trust a body shop with their vehicles, Fulkerson said.“The collision repair industry is especially important because vehicles are most commonly the second largest asset one possesses in their lifetime. For most, it is critical to the success of their day---ensuring the kids are at school and they make it to work on time," Fulkerson said. "Because of this heightened importance and cost endured when getting collision repair, many are extra hesitant to entrust their vehicle at a shop that does not have recent and good reviews.”Fulkerson said shops always need to respond to reviews, both positive and negative.“Another important aspect of getting reviews is responding to them,” she said. “The only opportunity we have as a business owner to dispute a review is to leave a response. By remaining cool and calm but potentially shedding some light onto the negative experience mentioned, you can show that you stand by your work and will always make it right."Businesses that have negative reviews and do not acknowledge them appear that they do not care," she said. "While many aspects of marketing and advertising are evolving, the need for good reviews remained unchanged.”Those shops that embrace online reviews and pursue new marketing techniques such as geofencing, SEO strategies and digital advertising are excelling, Fulkerson said.Here are some more interesting numbers and analysis from ReviewTrackers:Google remains the No. 1 review site of choice. Nearly 64% of consumers say they are likely to check Google reviews, through Google Maps and Search, before visiting a business location---more than any other review site. Yelp ranks second at 45.18%, followed by TripAdvisor and Facebook.Google’s review growth is driven by the volume of zero-click searches, which rose to 65% in 2020. By showing review snippets and star ratings in organic search results without having to send users to a third-party website, Google has effectively cut in line ahead of other websites in the online reviews space.Eighty-eight percent of all reviews come from only four review sites---Google (73%), Yelp (6%), Facebook (3%) and TripAdvisor (3%). Approximately 75% of new business is influenced by only a handful of business review sites and directories: Google, Facebook, Yelp, TripAdvisor, Apple Maps and Bing Maps.Review interaction is up by 50% from pre-pandemic levels. It’s one of the many signs demonstrating consumers’ heightened sensitivities about where to go or what to purchase in the wake of the pandemic.If your shop is missing the boat when it comes to sites like these, I would suggest to not try to do it yourself. Hire a knowledgeable company that specializes in leveraging these review sites to deliver solid leads and increase your car count.

Life Coach Uses Different Approaches to Help Auto Body Shop Techs, Owners, Managers

Claudia Morgillo has multiple titles, including certified professional leadership coach and trainer. She and her husband own six Fix Auto locations in the Ontario, Canada, area, two Novus glass companies and a centralized head office.As a woman and a leader, what communication and other skills you've developed over the years to be a manager in a male-dominated industry?I have developed a lot of processing modalities, including learning how to communicate, train and motivate the people that I work with while being a female in this industry. I think as a woman, knowing how to communicate with different people in general is a real plus.My dad has been in the industry for almost 50 years and he introduced it to me; I followed him around at a young age and later worked alongside him in his jobber business.At this point, I've been in collision repair for more than 25 years. Thirteen years ago, my husband, Claudio Chiodo, and I purchased our first body shop, and have grown from that point on.How do you motivate your people? Do you take different approaches with each person?Four main groups are impacting our industry---Generation Z, ages 7-22 (born between 1997 and 2021); Millennials, ages 23-38 (born between 1981 and 1996); Generation X, ages 39-54 (born between 1965 and 1980); and our Boomers, ages 55-73 (born between 1946 and 1964).I went back to school and earned a lot of different training and coaching certifications to help and support my teams through the real challenges our industry was facing.In the end, it comes down to attaining the right skills to motivate people in general. For instance, how do you create buy-in, build comfort and trust, and all those things? So, I went back to learn how to build and use the tools needed for these essential skills and, most notably, the neuroscience behind them.I became a professional coach and a leadership trainer to motivate all these people individually. Every person requires a different approach, so if you try to treat everyone the same, it will likely fail. I have developed tools that are tried, tested and true. But in the end, it comes down to peoples’ motivations and how they feel appreciated. How do they understand caring, because everybody understands caring differently?Everybody's going to respond to buy-in in their own way, so how do I create that for them? That's my approach---it's individualized and that's why I went back to school to find out about how I can achieve that for all these people. I've been doing that for more than five years now full-time within my organization and for external clients as well.I have also been working closely with David Luehr at Elite Body Shop Solutions, as well as different industry leaders, and owners of other shops to help them identify and build their skills and grow into being an MSO or whatever they'd like to do.What are your three main concerns about the collision repair industry?Everyone is talking about supply chain issues, hiring and retaining good people, and how to fix today’s sophisticated vehicles. My perspective on this is that it will always come back to people.Years ago, someone shared an equation with me that said, “Process plus people equals profits.” I thought, what does that really mean?So, the process part is self-explanatory, right? We're always constantly looking at process building and tweaking processes, but what are people doing about that?You never get to check the box because it's all about training, retraining and retaining people in this industry. Where are their mindsets for them? Do they want to be retrained and stay in our industry?So, my concerns will always come back to what we need to do to find, hire and train all of these people and keep them motivated. Because as much as we want to continue moving forward and pursue all of these new advancements being thrown at us, we can't just tell people they need to move forward.It's about how do we support these people to do these things? That's always my main concern---the people part of it. How do we keep them engaged and interested in training that’s changing with the times and still be motivated without getting exhausted? That is my concern for this industry because everything else seems to fall into place if we can do that.How can you help shop owners and managers to retain their workers with poaching rampant in some areas of the country?I tell people it all starts with leadership, including self-leadership. So, we are ideally going out into the world and showing other people what we’d like them to see and know about us, which of course, takes a lot of self awareness to be developed. If we can't lead ourselves, we can’t effectively lead others.So that’s why I help and support shop owners and managers by showing them how to lead themselves appropriately. People want to work for empowered leaders and learn from them. If you’re leading by example, your people will follow you through good times and bad times.The main causes of stress are often due to a lack of skills in those areas. For instance, weak time management skills are often a result of poor self-regulation and awareness. In my opinion, productivity is most often affected by gaps in someone’s communication skills.Those things get in people's way, sometimes regarding attitude and knowing how you show up in the world. How do you turn someone’s perspective around when things are getting hard? Because we all get there eventually, but how we choose to go forward can make or break an entire day for some shops.So, it's about creating that self-awareness and giving them tools they can put in their toolbox so that when they do get in the thick of it, they will be OK to get through successfully.Why do some shops excel and others struggle?I think it pretty much goes into that same sentiment, that some shops struggle because of culture and a lack of self-awareness. I feel it always comes back to culture. You can have all the OEM certifications and DRP relationships you like within your business, but if your team doesn’t know your organization’s “why,” they will sometimes struggle to understand “why” they are doing what they are doing every day, week, month and year alongside you.That's trouble if they don't know why they're there and the culture isn't being solidified. They know what they're there to do and nothing more; that is where you run into gaps.I can see that some shops struggle because they don't have the shop’s culture on their radar and don't know what they don't know. So, they don't even know what is not working because they don't even know what to look for.Ideally, we need to ask some basic questions. How do we communicate with each other? How do we want to communicate with each other going forward? Why do “we” choose to repair cars as a career? Do we feel like a team? What does our ideal team look and feel like?These are just some of the possible empowering questions we ask our teams to help support and build better cultures within our organizations.

CAA Says a New Kind of Insurer Steering is Impacting the Industry

The California Autobody Association (CAA) recently held a one-hour Zoom meeting with the California Department of Insurance (CA-DOI), covering a handful of topics of interest to the entire membership.One particular subject that has been a pebble in CAA’s shoe for several years was brought up again during the meeting. You might be thinking that pebble was illegal steering, but you’d only be half right.When we talk about steering in this industry, it’s usually about insurers trying to persuade consumers to take their vehicles to DRP shops, because those shops offer the insurer more attractive labor rates, and in many cases, a promise to use the lowest priced parts available.Instead, this is about “parts steering." Parts steering is where insurance companies search a multitude of different online vendors scattered across the country to find each part at the lowest price, and then cap payment on their estimate based on that price. Sound reasonable?Monte Etherton, chairman of the CAA State Legislation Committee and state board member of CAA's San Diego chapter, has been monitoring this situation for years and doesn’t think it’s reasonable at all.“Here’s an analogy,” he said. “Your 8-year-old car needs some work, so you take it to the dealer and they give you an estimate for $3,500. You tell them you’ll get back to them. Their estimate lists five parts that total $2,000 of the $3,500. Since you want to save some money, you start scouring the internet for those parts."You find the cheapest parts from five different online stores, and all offer free shipping. Buying those parts instead of the parts from the dealer will save you almost $500. You make a neat list of all the store’s phone numbers and the prices and take it back to the dealer and ask them to buy the parts they need from those places so you can save some money. What do you think they would do?”Etherton cites “parts steering” as a major problem in the industry.“Some insurance companies will only pay us based on the price of the cheapest parts, so they are literally forcing us to buy certain parts from their vendors or lose money," he said.“I did one job on a Volkswagen where the insurance company’s estimate had an aftermarket headlight from an out-of-town vendor, because it was cheaper than my local aftermarket supplier," Etherton said. "I emailed them that they can't require me to buy a part from a specific supplier, and they replied with this fallacy: ‘We can’t tell you where to purchase your parts, but we don’t owe more because you select a different vendor.’”In 2018, CAA received a written legal opinion from the CA-DOI in response to questions regarding several industry problems, including parts steering. Two paragraphs from the opinion explain how parts steering is related to customer steering, which is illegal in California:“No insurer may require that an automobile be repaired at a specific automobile repair shop. (Cal. Ins. Code §758.5(a)). If the claimant elects to have the vehicle repaired at the shop of his or her choice, the insurer may not limit or discount the reasonable repair costs based on charges that would have been incurred had the vehicle been repaired by the insurer’s preferred shop. (Cal. Ins. Code §758.5(d)). As a result, by refusing to pay any reasonable price for a replacement part that is higher than the price quoted by the insurer’s preferred parts vendors, the insurer is limiting or discounting the reasonable repair costs based on the charges that would have been incurred had the vehicle been repaired by the insurer’s chosen repair shop thereby preventing customers from using the repair shop of their choice and preventing the policyholder from using any shop other than those shops that purchase their replacement crash parts from the preferred parts vendors of the insurer.“Limiting or discounting the reasonable repair costs based on the charges that would have been incurred had the vehicle been repaired by the insurer’s chosen repair shop is a violation of Insurance Code section §758.5(b) (3) and would constitute a violation of the Unfair Insurance Practices Act. Cal. Ins. Code §758.5(f). That is, if an insurer limits or discounts the reasonable repair costs based upon the replacement part prices available from a certain parts vendor, the insurer would effectively prevent a customer from using the automobile repair shop of his or her choice in violation of Insurance Code section 758.5(b)(3). An insurer would, however, be permitted to reasonably adjust a collision repair shop’s written parts price estimate for any part, including new OEM crash parts, if the insurer demonstrates that the price charged by the repair shop for the replacement part is “unreasonable.” 10 CCR §2695.8(f).”Read the full legal opinion here.This opinion was also a topic of the Zoom meeting. Both the DOI’s deputy commissioner and the Claims Services Bureau chief urged shops experiencing this problem to send a copy of the DOI letter to the insurer with their supplement.Miscategorized PartsThere is another facet to this problem. In California, the law requires shops only list parts on their estimate as new, used, reconditioned, rebuilt, an OEM crash part or a non-OEM aftermarket crash part. Insurers are also supposed to follow these regulations when writing estimates, but some do not.“A few months back, we had a 2021 Mercedes in the shop," Etherton said. "It only had 1,000 miles on it and was hit pretty hard in the right suspension. The customer’s insurer specified 13 used, non-OEM or reconditioned parts from six different vendors located in California, Texas, Michigan and Oregon. The parts' prices ranged from about $10 to $1,000.“Some of the part descriptions were really questionable, like a reconditioned upper control arm and a reconditioned engine cradle, and a used wheel that was also refurbished. By law, we have to be crystal clear about parts with our customer, but how can I do that if I don’t even know what they are?" Etherton continued. "And none of these parts had a manufacturer’s warranty, something we would get if we bought them from the dealer. We ended up losing that job because we believed new genuine factory parts belonged on that car, and the customer didn’t want to pay the difference. She did tell me she was changing insurance companies though.”The Difference Between Opt-OEM Parts and Genuine OEM PartsMany parts on insurers' estimates have been miscategorized with such terms as “alt-OEM”, “opt-OEM” and “surplus-OEM." In reality, these parts may be over-production, blemished or damaged OEM parts. One thing they all have in common is none of them carry the original car manufacturer’s warranty.Every part sold by every vehicle manufacturer has a manufacturer’s suggested retail price (MSRP), which is the price a shop charges for the part. In contrast, opt-OEM parts do not have an MSRP, only a cost. When a part does not have an MSRP, insurers will allow a “markup," usually 20%.Etherton thinks he knows how opt-OEM came into existence.“Let’s say a shop buys a bumper from a Chevy dealer that has an MSRP of $200, and the shop gets it for $140 wholesale. The shop will make a $60 profit," he said.“Let’s also say an opt-OEM vendor---maybe a wrecking yard---has bought 50 of those bumpers on the gray market for $120 each. They offer the bumper to insurers for $150. The insurer marks the part up $30---20%---for the shop. The insurer now gets the $200 bumper for $180, but the shop loses half their profit, the shop’s Chevy dealer loses a sale and the customer loses the Chevy factory warranty because the shop didn’t purchase the part from the dealer. Who wins here?”Another issue is some vendors are mislabeling their parts to gain an advantage with insurers.“Something else we see is when the vendor lists a bumper cover as a used part when it’s actually a new 'surplus part," Etherton said. "Many new factory bumpers are raw plastic, which requires a special prep to make the paint stick. That prep costs about $100. Since a used bumper is already painted and wouldn’t need that treatment, the insurer won’t put the treatment on their estimate. The problem is, the bumper isn’t a used part, and the work still has to be done.”How Shops Choose Which Vendors from Which to Purchase PartsJust like any business, body shops must choose their vendors carefully. Shops need to know a vendor will be in business next month or next year if there’s a problem. They need to deal with experts that will send the correct parts the first time, quickly and at no charge, whether that part is a $2.50 fastener or a $700 aluminum hood.Another problem Etherton brought up is the logistics of adding unnecessary vendors to his shop’s bookkeeping system and staff.“Most online vendors limit what they sell to big-ticket high-volume parts, so they can’t fill a complete order,” he said. “If you buy from one, you either have to pay COD or have an open account, right? Any body shop worth its salt has charge accounts with their vendors because you can't afford to write a check for each invoice and have $100,000 tied up before you get paid."Not being able to use our regular vendors means we have to pay upfront for the parts, either by check or credit card," he said. "And when I call these vendors to see if they really have the part, I usually spend at least five minutes on hold waiting for people to answer the phone. Probably half the time they either don’t have the part, it’s not what they said it was, or they won’t deliver to our area.“And if you do buy the part and it's wrong, they already have your money,” Etherton said. “Hopefully they'll give it back, but you need to pay return shipping and wait."The other option is to open an account with each of these vendors. Now if you know anything about bookkeeping, we already have like 50 various parts vendors on our list. If we had to add a new vendor to our database for every time an insurance company found a cheaper part, we’d probably have 200 more vendors, and who's going to keep track of that? Two hundred credit applications? Two hundred more monthly statements to reconcile? It’s ridiculous.”Doing the Insurance Adjuster’s JobAnother subject discussed during the CAA CA-DOI meeting was how insurers are requiring more and more documentation from shops before they will pay the claim. The documentation is in the form of damage photos, work in process photos, purchase invoice copies and more.“What happens is that we have a customer who wants us to fix their car, so we write an estimate and send it to their insurance company,” Etherton said. “Now some insurance companies review our estimate and pay it to the penny, while others cut the estimate no matter what you send them. And it’s not uncommon for an insurer to start off low at $2,000 and end up paying an actual cost of $8,000.“I think the insurers that cut estimates are just trying to make our job so difficult that we will give up and accept their lowball offers,” he said. “They want pictures and copies of everything, and as I said before, whatever the lowest part prices they can find on the internet is the most they will pay us for the parts we need to fix the car.”Etherton’s main point is this---other than allowing the insurer to inspect the car at his shop, he has no obligation to them to document anything. The obligation he does have is to the vehicle owner.“The law says if I fix your car, we will have a contract between us, which is my estimate," he said. "I give you the estimate, and then you authorize the estimate so it becomes a work order. So, I repair your car based on that work order. If I don't follow that work order while repairing your car, then I have committed fraud and could lose my license.“Even though these insurance companies have the right to inspect the damaged car, they choose not to. It’s easier to deny the claim from a distance than it is in person.”

Massachusetts Auto Body Shops Fight for Better Reimbursement Rates

Collision repair industry leaders, along with a row of tow trucks, paraded outside the Massachusetts State House on May 18 to demand action on two proposed bills before lawmakers that would raise the state's lowest-in-the-nation reimbursement rates.House Bill 1111 and State Bill 709 are an “Act to establish a minimum reimbursement rate to insurance claimants" and are currently being argued in a joint committee.According to supporters, both bills would set the rate for repair at approximately $78 per hour for reimbursement.The current reimbursement rate is $40 per hour, which, according to the group, is the lowest in the nation and just $10 more than it was in 1988.Both bills have until June 30 to clear the committee, after which the legislature would have just a month before the end of the session to approve and send them to Gov. Charlie Baker’s desk.AASP-MA Executive Director Evangelos “Lucky” Papageorg is excited about the two proposed bills that might actually level the playing field. He offered a little history on House Bill 1111 and State Bill 709.“In 1988, insurance reform led to the reimbursement rate being at $30 an hour, which made Massachusetts have one of the highest-paid reimbursement rates in the country and best reimbursement rates,” Papageorg said. “But, once the Insurance Reform Act went through, the reimbursement rates actually dropped from $30 to $28 per hour for about five years, based on contractual arrangements that shops had with the insurance companies. Today, they are at $40---35 years later. I wouldn’t call that a jump in rates, to say the least.“House Bill 1111 and State Bill 709 are essentially identical bills that take away the ability for insurance companies to stagnate the rates in the future, which is what they've effectively done,” Papageorg said. “It allows the insurance industry and body shops to be able to plan ahead as far as what they can anticipate for expenses and income, because the reimbursement rate will keep pace with the consumer pricing index here, with the language in these bills.”Papageorg has witnessed the results of not providing a livable wage to body technicians, causing many to exit the industry with prejudice, he said.“One of our members and a top body shop operator, Brian Bernard, has lost several of his top techs to other shops or to the industry altogether," Papageorg said. "He lost several technicians over the last few years to other industries in neighboring states because the surrounding states are paying a higher rate."One vocational school teacher told us recently that students get into collision repair because it's cool and they love it. It's exciting. It's constantly changing," Papageorg continued. "But all those things don't pay the bills. The collision repair students don't stay with it, and those who do leave the vocational schools and get into a collision repair shop don't last very long because they can't make a decent living.Reimbursement rates in Massachusetts have been stuck at $40 for the last 35 years. Photo courtesy of AASP-MA."These bills have the potential to rectify a situation. I can’t find any other industry or vocation out there that can say they have only increased their skills by only $10 an hour over the last 35 years," Papageorg said. "Insurance companies are reporting record-breaking profits, and yet they're still applying for increases in their premiums, and some of their top managers have incredible salary packages. Cost containment has to begin at the top.”Bernard, co-owner of Total Care Accident Repair in Raynham, MA, sees the problem of underpaying technicians causing a whole set of additional issues.“This should have happened several decades ago, so these bills are much-needed and can provide us with a much-needed boost in many ways,” Bernard said. “The cost of living keeps going up every year, and the insurance companies can tell us with straight faces that these wages are acceptable? What can you say to a young person who is trying to get into this industry and willing to work for inferior pay? It all comes from the fact that the insurers don’t want to compensate us properly for repairs, so we are in this unfortunate situation.”Former State Sen. Guy Glodis said the insurance companies are going to do everything they can to prevent these bills from passing.Nearly a decade ago, the collision repair industry in Massachusetts approached Glodis to tell the insurance companies their wages were ridiculously low.“Everything [collision repairers] told me has happened exactly the way they described it to me in 2003,” he said. “They said workers would leave the state and that it would be difficult to get young people to join the industry. We couldn’t get any traction back then, but now we might be able to break through. It involves educating the legislature about the fact that the insurance industry has been successfully suppressing wages for more than 20 years.”Elias Akiki, owner of Akiki Auto Body in Hyde Park, MA, appeared on several news stations in the Boston area, speaking about a topic he knows too well.“The bottom line is that the insurance companies have been taking advantage of the collision repairers and insured consumers since day one,” he said. “They will always try to get away with whatever they can. It ends up creating a bad situation because many shops can’t afford to do an OE repair, and the customer doesn’t know any better. So, they settle for sub-par repairs, and all we’re doing is trying to do the job right.”Akiki, 47, entered the collision repair industry at 19, working with his father. He has seen the path these bills have taken and is ready for change, he said.“Back in 1985, we were a completely different company than we are today because the industry has changed so dramatically since then," Akiki said. "Our obligation now is to learn, educate, evolve and do repairs the right way. For us, it’s the only way, but it comes at a cost.”Spiraling costs have hamstrung many shops, Akiki said, which makes it so much more difficult to make a profit.“We have more than 10 OE certifications; do you know how much that costs us?" he said. "The training, the diagnostics, aluminum repair---it’s not cheap. We have to pay for all of it at a reimbursement rate of $40? It’s not fair.”There is always a silver lining in every cloud, Akiki said with a chuckle.“One good thing is that we don’t have any MSOs here competing with us. They are smart enough to know that they can’t make money in Massachusetts.”

Auto Body Shop Veteran Says DRPs Can Be Profitable If Done Right

Autobody News recently sat down with Jim Huard to talk about what’s important to him and the current state of the collision repair industry.Jim and Kelly Huard are the co-owners of Painters Collision Centers with two locations in Queen Creek and Chandler, AZ. Their goal is 10 locations within the next two years through smart and strategic expansion.As a body shop owner, what are your top concerns?Hiring and retaining skilled labor is our No. 1 concern.A shop owner told me one time the tug-of-war between body shops and insurance companies will never cease, although it will change and evolve. Do you agree, and how and why have your relationships with your insurers changed?I respectfully disagree; I am different in how I view this. All repairers can work effectively with carriers if they know how to navigate through the process. It’s not always just about being right. But instead of having the facts, the correct documentation and the right attitude about the relationship is what is truly important.Another body shop owner told me the main problem in this industry is the simple fact the insurance companies, in general, don’t pay enough for repairs. Do you agree?I again respectfully disagree, because from my experience, all insurers will pay to repair the vehicle correctly. I also believe it is a choice to repair a car correctly. Scans, calibrations and the like will be reimbursed as long as they are properly documented.I am a DRP work flow guy. I am fanatical about quality repairs, and we are super picky about what we repair. The insurance companies are always watching the bottom line and there is nothing wrong with that. But I don’t think they ever want us to do sub-par repairs or compromise our quality to save money.Are most of your DRPs profitable and are you satisfied with them?I believe that all DRPs are profitable for all shops. How do you repair a car? And how do you write the estimate? Are you focused on the sales mix and writing a complete estimate? Are you complacent and write poor estimates and what does your throughput model look like?Profitability is predicated on good quality estimates and throughput. This is a proven fact. A shop that produces 1.5 HPD will put 1.8% to the bottom line, give or take. A shop producing six HPD will put 18% to 20% to the bottom line or better.How has all of the new technology impacted your productivity? Customer service? Marketing? Online?We have had to adapt several times over. We created processes to repair higher level technology vehicles effectively while positively impacting our CSI. We also work with a stellar marketing company, Stratosphere Studio, that is engaged, in tune and really knows the collision repair industry.Are you ever worried you’re too dependent on your DRPs?I am not, because we are very strategic on how we operate. We do not put all of our eggs in one basket. One of our DRPs generates 37% of our revenue, and another one is at 21%, for example. I work with five partners in total and will not add any more. This is how we are able to provide top level KPIs with compliance and overall stellar performance for each partner.Do your insurance partners constantly ask you to incorporate more aftermarket and recycled/remanufactured parts into your repairs? Are some of these parts OK to use, or would you want to use OE parts on every repair if you could?I will answer this carefully. In a perfect world, we would use all OE. This frankly would improve the carrier’s profit. We did a case study on this topic. What we discovered is that with the downtime of getting a used part, and the fact that most come damaged or not useable, we often have to return and wait for another. It’s incredibly time-consuming and costs the carriers thousands of dollars per day in rental costs.This does apply to some aftermarket and reconditioned parts. The carriers put a ton of pressure on the rentals and cycle time. Most carriers spend $5 million per day on rental replacements while vehicles are being repaired.I also believe that if a consumer purchases a policy that requires aftermarket parts, that is on the consumer. Most aftermarket parts today fit well and are crash tested. Depending on what it is, a reconditioned part is more than acceptable, in my opinion. But as I stated, in an all-OEM world, all parties involved will gain throughput and profit.From your experience, is it better to pay techs salary/hourly or flat rate?I have many opinions here. But from my experience, hourly you will realize low profits, lack of productivity, poor cycle times and usually a sub-tribe of people who are not truly genuine in their efforts.Salary with a bonus incentive again creates a comfort zone for most. A person will learn to live on their salary and can become complacent in regard to the bonus. The bonus becomes meaningless this way.Commission or flat rate works for us. I pay flat rates to my techs and commission sales plans with KPI drivers to my repair planners and GMs. Your sales commission percentages are based on the KPIs you provide. These percentages range from 3% to 4.5% of the repair planners top line sale.So, for example: If a repair planner does $150,000 in sales, provides a five-day cycle time, a 97% CSI and a repair ratio of 77% or higher, they yield the highest percentage. So driven writers that get it love this plan. I have writers stacking cash monthly doing it this way.Imagine this industry in 20 years and share your vision.I see very advanced technologies, but in many cases, this technology creates accidents; there is just too much going on in the vehicle's cockpit. It distracts people from being able to focus, hence causing an accident.I also do not see the EVs taking the roads over. Frankly, I believe that will never occur.I see many shops dropping out because they cannot afford to purchase what it takes to stay up with current times. This happens because many owner operators are marginal at what they do. MSOs and consolidators take a very interesting approach to this as well.Do you have problems finding top techs, estimators, painters and office people in your region?This is difficult in any region or market in the U.S. I have created mentor programs that have yielded several quality techs. We have exceptional pay plans, incentives and provide a quality work environment. We upgrade our equipment regularly to ensure happy tech teams. Happy people are good producers. We work hard to attract and retain top people.MSOs are eating up small independent shops throughout the country. Is this also true in your state?Yes, but it’s not at the same pace here in Arizona as compared to some other states. I frankly like having consolidators/MSOs on the same street because the majority of them cannot perform. So, we gain in a big way as a result. Carriers have become increasingly frustrated with MSOs and their poor performance.Scale will be the death of these companies due to the lack of control and the lack of care. Many of them are in it for a paycheck and nothing more. I talk to hundreds of people each year from these companies, and the good ones want to run because they see the demise of the MSOs coming.

After the Donation: Veteran’s Donated Car Enables Her to ‘Pay It Forward’

When deserving people get fully refurbished vehicles from auto body shops, whether MSOs or independents, it is always a major win-win for the industry and the community.In this series, we follow up to find out how these vehicles have helped these deserving people as they pursue their dreams and achieve their goals after they've received their cars.In this case, TeJae Dunnivant, a U.S. Army Reserve veteran, and her son were awarded a 2014 Volkswagen Jetta from Mike's Auto Body in northern California's East Bay in 2016. The car was donated by CSAA Insurance and the giveaway was sponsored by the Blue Star Moms while Dunnivant was working as a veteran advisor at the University of California, Berkeley and pursuing her degree.At the time, Dunnivant needed the Jetta to get to and from school and other chores, but when life threw her a curveball, her vehicle from Mike's Auto Body became even more vital to the survival of her and her young son.Three months after receiving the vehicle, Dunnivant found out her son Asad, then 12, had leukemia."In February of 2017, we got some tough news and of course that was a major deal," she said. "When I initially wrote my letter for the vehicle, I stated that I needed the car to go to the grocery store and food banks, which is hard to do on foot. After a while, we began using it to go back and forth from Albany to Oakland Children's Hospital, so the Jetta became a lot more important lifeline for us and a more major part of our lives."Now, let’s fast forward to 2022 and check in with Dunnivant and her son.First off, Dunnivant got a bachelor's degree in media studies from the University of California, Berkeley. She also worked for one year at Contra Costa College in San Leandro, CA, in its Veterans Center.Then, she moved down to San Diego, CA, to work for Operation Homefront, a national nonprofit whose mission is to build strong, stable and secure military families so they can thrive in their respective communities. In 2022, Dunnivant is using her donated vehicle to pay it forward to others as an account coordinator, working in the field office program.“We do so much great work for this national non-profit,” she said. “I am in charge of California and Hawaii, working with a team to give backpacks and holiday meals or gift cards for food during the pandemic. We are definitely one of the country’s top-rated nonprofit organizations helping military veterans to succeed and strive as opposed to just getting by."For more than twenty years, Operation Homefront has provided programs that offer relief, through critical financial assistance and transitional housing programs; resiliency, through permanent housing and caregiver support services; and recurring family support programs and services throughout the year that helps military families overcome the short-term bumps in the road so they don’t become long-term chronic problems.Operation Homefront has earned high ratings from leading charity rating services since day one, including Charity Navigator, which gave Operation Homefront four stars for 11 consecutive years for superior service, full transparency and accountability.At Operation Homefront, 88% of expenditures go directly toward delivering programs and services to the military families who need it the most.Another part of this exciting update is about Asad. He is now 15 and a sophomore at Coronado High School, where he plays volleyball and is maintaining a 3.5 GPA.“He is doing very well,” Dunnivant said. “There are no more reoccurrences of the cancer following some rigorous chemotherapy. He sometimes has issues trying to retain information, so we’ve been working with neurologists to help with him in that area. Asad has been taking on a heavy load of classes and that’s why he will be graduating from high school one year early, in June of 2023.”Like his mother, Asad has a dream to make the world a better place to live.“He wants to create change in society, and it surely is special,” Dunnivant said. “He loves his debate class and isn’t afraid to get up in front of people to speak. He was exposed to a lot of positivity when I was attending Cal and gravitated toward people who are willing to take stands about things that matter to them. His plan it to attend community school for the first two years, then transfer to a four-year school to get a B.A., before going to a top law school.”Another positive experience in TeJae and Asad’s lives relates to their donated vehicle. Their 2014 VW Jetta is still running well and has become a huge part of their success story.“We still rely on this car every day and it always comes through for us,” she said. “It’s enabled me to do the important things I am achieving in my life. Everything has come full circle; I received a hand up from the people at Mike’s Auto Body and now I am helping people myself. Without this car, it would have been pretty difficult to do all these things, and when I look back at it, it surely is very satisfying and fulfilling. I’d like to thank Sal, the Rose family, CSAA Insurance and the Blue Star Moms!”

Auto Body Shop Owner Richard ‘Pinkey’ Feest is 98 and Still Going Strong

If you want to live a long and healthy life, consult Richard “Pinkey” Feest, the enigmatic owner of Pinkey’s Capital Auto Body in Milwaukee, WI.He’s 98 and still works 40 to 50 hours every week at the auto body shop he established in 1956.When Feest entered the industry, there were no DRPs, self-driving cars were something out of sci-fi movies and the average body tech was earning $10 to $15 hourly.Pinkey got his nickname at birth when his sister exclaimed, “What a cute little baby, he’s all pink."“I don’t mind the nickname at all, and I never mind it when people call me Pinkey,” Feest said.Pinkey fell in love with the body shop life at age 12 and never looked back, he said.“One of my cousins was married to a guy who owned a body shop, and he allowed me to hang out there and watch the techs in action," Feest said. "I was enthralled with the process, and pretty soon, they let me work there on Saturdays and after school. Sometimes I would work late into the evenings, and I never tired of it."My buddies were going to dances and football games, and I missed them all," he said. "When I saw these body men doing amazing work with their hands, I knew this was the right career for me. This shop was my classroom, and these highly-skilled collision professionals were the best teachers in the world! If you love your job, you’ll never work again.”Any business that has been around since 1956 has been through its own set of trials and tribulations. There was a fire, a little family drama sprinkled in, and the pandemic, which has made everyone’s lives tougher over the last few years.After serving in World War II, Feest landed a job at a body shop that he would buy. When he saw there was an opportunity, he jumped on it.“I was in the service overseas for three years, and the night I got back I partied and then the next morning I went to work at the body shop at 8 a.m."I approached the owner and told him nicely that I didn’t think he really wanted to own a body shop," Feest said. "He had a lot of other businesses, including oil interests and part ownership of a Kentucky Derby horse. Collision repair wasn’t on the top of his list, and it turned out to be right. I didn’t have any assets, so I had to negotiate with the bank. They said my loan wasn’t big enough, so they gave me more money and I hit the ground running. I always wanted a shop and I finally had one!”Pinkey’s Capital Auto Body is indeed a family operation, with Feest’s two sons---one now retired---daughter, two granddaughters and two grandsons working in the business.Pinkey’s Capital Auto Body in Milwaukee, WI, is one of the oldest shops in the area.“My intention from the very beginning was to make this a family business,” he said. “My grandsons will be running the whole show in a few years, and I’m thrilled. They have turned out to be wonderful additions to our company because they work hard and everyone can see it."When my sons started working here, we gave them the dirtiest jobs we could find and told them to work their way up. And now we are doing it the same way with my grandsons. Someone has to do the dirty jobs, and no one is special here---these are great lessons for young people.”The shop is busy all the time, repairing 2,000-plus vehicles annually and booked up two months ahead. Longevity and exemplary customer service mean Pinkey’s Capital can compete with the bigger chains in his area. Local media exposure and traditional advertising have enabled the business to become a household name.“We have been advertising on buses for a long time, so people know our logo and our name because it’s all around town,” he said. “One of the local television stations has interviewed me at least three times---on my birthdays and when we hit our 65th anniversary. A reporter told me that I am likable and people love a story about people who love what they do and willing to work hard. I like that message!”In an industry where it’s difficult to find and retain qualified people who have a passion for collision repair, Feest keeps his people happy and productive.“We don’t treat our people just like employees and that’s why turnover has never been a problem," he said. "We had two technicians who retired after working here for 40 and 50 years, respectively. All of our guys are essentially combo techs, which means that they do a repair from start to finish. Some shops prefer a factory-like production system, but true satisfaction comes from doing their entire job. They can look at a finished vehicle and say---that’s my work---instead of saying I did that one fender.”Feest’s mantra has always been to pursue quality in lieu of speed.“We never rush our people because the most important thing is doing the repair right,” he said. “It’s an approach that really pays off, and that’s why we have a great reputation."In the collision repair industry, we are in the trust business. When they hire us to work on their cars, they trust us to do it right. One comeback or shoddy work can hurt a business, and that’s why we strive to avoid those problems," he said. "In this business, it’s all about the details, so we focus on the little things. You can come through like a champ, but the customer will remember that forever if you forget just one little thing.”At 98, Feest has assumed a mentor/teacher role at the shop, from which he gets great satisfaction. Whenever he shows up, Feest isn’t afraid to instruct his grandsons about the finer points of the industry. It’s knowledge he’s been collecting over seven decades, and he is proud he built Pinkey’s Capital all with his own two hands.“My kids just signed me to another 100-year contract, so it looks like I’ll be here for at least a few more years,” he said with a laugh and that Pinkey smile.

Capture the Keys Uses Geofencing to Find Customers in the Right Place at the Right Time

Thomas Zoebelein, owner of Stratosphere Studio in Bel Air, MD, creates marketing concepts for auto body shops well-known for pushing the envelope.His latest product is Capture the Keys, a software product that can target and pinpoint potential customers who have physically visited competing shops. It’s totally legal and ethical, and has been highly effective in gathering viable leads for Zoebelein’s shop customers since he unveiled it in 2020.Stratosphere Studio has evolved with the collision repair industry since it opened its doors in 2011.“Back then, we were doing primarily digital marketing for body shops---websites, blog content, email marketing and some consumer advertising, and it worked very well for a while," Zoebelein said. "We found out about geofencing back when it was new, and thought, wow, this is the perfect thing for body shops because you can actually target people that are walking into a facility. I realized that geofencing was the solution, as long as it’s used strategically employed the right way."The biggest question is how to find that customer immediately after they get into an accident.“Collision repair marketing is like trying to catch lightning in a bottle,” Zoebelein said. “You have to know when the lightning is going to strike in order to be able to put your lid on the jar, right? So, with geofencing we know if somebody's walking into a competitor's location and they’re not a vendor or an employee, they're in the market.”I could write 5,000 words to describe how geofencing works, but Zoebelein can do it in less than 60.“In short, geofencing enables a user to capture any device’s ID's and Mobile Ad ID's (MAIDs) for any device that enters a fenced zone," he said. "Then we can serve ads into the app’s websites and social media feeds of that device. You can also track that back to the activity that the device does after it has been served an ad, such as counting it as a walk-in.”Once Zoebelein saw the potential benefits for using geofencing, he began telling his shop customers about it in 2019---but without luck, at least initially.“It fell on deaf ears at first,” he said. “Nobody was really ready to jump in on the technology at that time. So then when COVID happened, people were starting to hear a little bit about geofencing for shops. One of my shop customers called me and said that he scrubbed down his frame machine for the second time, and his paint booth was spotless. He said I need to get some cars in here, so let's give that geofencing thing a shot; what's the harm? It generated a few walk-ins that clearly came from a competitor’s location. And so, I thought, wow, we might be onto something here.”Further testing led to the collection of solid leads, and soon Stratosphere decided to offer Capture the Keys to its clients, primarily independent shops.“We went to another shop with two locations in Pennsylvania and asked them if we could test it with them and they said sure," Zoebelein said. "So, we ran a second test and had similar positive results. So that’s when we decided to launch geofencing as a service, and then eventually we turned it into a product."It includes Facebook ads, Instagram ads, as well as Instagram and Facebook content, with geofencing and an in-depth reporting feature," he continued. "It enables us to show our customers every two weeks how many leads we’ve collected. We send them a video walk-through of all the numbers and it shows how many phone calls they receive, how many walk-ins they get, how many lead submissions they collect and how many clicks they receive from the ads.”Capture the Keys helps shops with their search engine optimization (SEO) as well.“They see an immediate 30-35% increase in traffic to their Google My Business page," Zoebelein said. "We officially launched Capture the Keys at Kristen Felder's first World's Fair & Expo in 2020 and that's when it really took off for us. Shops can send postcards to people all day long. TV and radio does a good job to build awareness, but it's a really inefficient way of getting in front of people who are buying right now."The best way to get in front of buyers is to be able to identify them in real time, and we can do it with geofencing.”Stratosphere is working with a company that tracks devices back to where the phone spends the night, and from there they can tell the physical address and name of the head of household. In some cases, it can pull email addresses in as well.“I can even tell you the year make and model of their vehicle, and even get their birthday in a lot of the cases,” Zoebelein said. “We draw these fences around our customer’s competing locations---whether they’re another body shop or a dealership---including their parking lots."One of the reasons why geofencing works so well is due to the fact that it doesn't care what you look at online," he said. "It'll start serving ads because it's tracking the device, not the user. Many of our clients are getting a considerable amount of walk-ins with people sending in photos of the damage, and filling out submission forms immediately after getting into accidents, and it all happens because of geofencing.”So, what happens when somebody starts getting a banner ad on their device via geofencing?“First, they'll Google the shop by name,” he said. “So, this is different than doing an auto body repair search. The idea is that you're going to find your body shop by searching for it online even if that was the only thing available to you. It's a guaranteed branded search, so we actually don't care where they click once they're there."If they want to go to the website, Yelp or Facebook, it doesn't matter," Zoebelein said. "Accessing the shop’s Google My Business page is the last mile in any buying decision for auto repair and it just makes it the very next step. Everything they need to know about the shop is right here. They can read reviews on the shop, see photos of the shop, they can book an appointment right from there or just click to call. They can click to get directions or even save it to their phone to access later."The third thing the user can do is then click on the ad, which takes them to a landing page that explains why they should consider getting a second opinion outlining all of their services, certifications and capabilities.”Zoebelein explained Stratosphere is in the mind-changing business, and Capture the Keys can also help the fight against steering.“Capture The Keys was designed to help collision repair facilities combat insurance steering through a proprietary blend of geofencing and paid media strategies,” he said. “It is designed to find prospects and get a 'second opinion quote' from our body shop customers. Leads are handled through our own custom-built CRM for collision repairers and remove the friction in the transition from prospect lead to paying customer."The blogs Stratosphere creates for its customers are built to inform and promote the industry as a whole.“We've rewritten just about every single OEM position statement out there in layman's terms,” Zoebelein said. “I like to say we reinvented the blog. It's not strictly for SEO, but more for customer education and to solidify the fact that each one of our body shop customers is the No. 1 industry expert in their particular region. The whole point in advertising in simple terms is to find, identify and connect the buyer with the seller of a service or product, and we can achieve it all with geofencing.”Fifty shops are currently using Capture the Keys and Zoebelein is looking to work with 50 more. Each shop’s region is protected and spots are limited.So, if you’re on the fence about geofencing, maybe this article will prompt you to consider this technology and its benefits for your business.Learn more at capturethekeys.com.

Heidi Foster at Crash Champions is In It to Win It

Heidi Foster has been fighting battles her entire life.She went up against the best as a Division I college softball star athlete, entered an industry where she wasn’t initially embraced and, two years ago, experienced a stroke that would have sidelined many people permanently.It’s fitting that Foster now has a leadership position as vice president of operations for the Mountain Region at a company called Crash Champions, because there’s no doubt she is truly a champion when it comes to winning at the game of life.A high school all-star in Orange County, CA, Foster received a full ride scholarship from Purdue University to play softball, where she was an MVP, team captain for two years and named to the All-Big Ten and All-Mideast Region teams. She earned a bachelor's degree in sociology and communications as a Boilermaker, two disciplines ideal for working in the collision repair industry.Her career in collision repair has exposed Foster to a wide range of diverse roles in the space, all of which she’s used to learn about different aspects of the industry.As a leader for MSOs, Foster has experience working alongside large teams of technicians and service advisors, achieving high customer ratings and earning praise from her co-workers and industry leaders.Foster was initially introduced to the world of customer service through her mother’s employment with the Auto Club of Southern California. She was hired to work in the call center, then the claims center, and began to demonstrate some leadership skills right off the bat.“I was cross trained in multiple areas of claims, then went on to adjust claims where I found my niche," Foster said. "I excelled quickly and found that I really enjoyed helping people while learning the body shop side of the business.”Once Foster transitioned to Sterling Collision Center in Tustin, CA, specializing in eight high-end certifications, the veteran technicians she encountered chided her about things like her inexperience and shop attire, she said.“These guys told me; you can't come in here dressed for a board meeting," she said. "Moreover, I wasn’t as experienced as my coworkers; in fact, that was my first time in an actual shop. Needless to say, it was easy to feel out of place.”Today, Foster thanks those same techs who educated her on the ins and outs of shop life.“It took me about a month before asking a few technicians to help me understand repair procedures and repair times. Soon after that, I was running with the big boys. I was writing better sheets, achieving top customer service scores with major DRPs, and I really started to enjoy the body shop business," she said. "The technicians made me better, and I will forever be grateful for the foundation of estimatics and repairs they gave me. From helping me explain estimates to insurance companies and customers, to managing production more efficiently, these are the guys who really shaped me. They were wonderful, and so instrumental to my success.”Following Sterling, Foster pivoted and co-founded Robaina Consulting, a global consultancy focused on the expansion of companies in the automotive industry.After working two years at Robaina, Foster landed a job with a large MSO for six years, where she held five different positions, including director of national training and director of operations.Foster, center, leads her team at Crash Champions with more compassion and empathy since having the stroke.Everything was progressing as planned, until life threw her a curveball in the form of a stroke.The stroke landed her in the hospital for five days, after which Foster rehabbed at home for two months.“I couldn't walk, I couldn’t see out of one eye and I suffered terrible headaches; moreover, cognitively I was a mess," she said. "My life had changed in an instant. I went from being a very active, social boss who was always on the move, to being a 'patient' confined to a bed with once-a-day walks. Finally, one of my doctors agreed to let me go back to work half-time, and eight months later I got the job at Crash Champions.”It was obviously a frightening experience and a serious life changer, Foster said.“I must have looked so scary. My left eye didn't open for a while because when I had the stroke, I fell and broke my nose. I couldn't get my vision quite right and I had extreme vertigo for quite a few months.“My doctor said you will never walk the same, regular tasks will be very difficult and you'll be on disability for the rest of your life," she said. "I just thought, you don't know me. No way. You're not going to tell me how this is going to go. So, I got a piece of paper and I wrote, ‘This will not beat me. I am strong, resilient, brave, and I will be better.' I knew in that moment that all I needed was for someone to tell me the odds are against me. I used her doubt to fuel my recovery. Thanks, doc.“In time, and through a tremendous amount of rehabilitation, determination and support, I started to feel like myself again," Foster said. "Soon I started driving, walking better and tackling more and more assignments at work. I was back.”Although she doesn’t have feeling on her left side, Foster is still swinging for the fences, she said.“As a single mother, I will always be a warrior for my daughter (Taylor, 17)," she said. "She is my everything, and I will never let her see me quit. You just take it one step at a time, day by day, and sometimes even hour by hour. As an athlete, you are used to performing and being the best on the field. In a life-changing event that affects your body, you have to change your mindset and just do what you can in that moment. It’s all mental.“I've always been a passionate leader,” Foster said. “But since having the stroke, I think I lead with more compassion and empathy now. I take time out to appreciate my team every single week. After all, the most important part of business is taking care of your people, and this includes understanding their individual needs and mindsets.”Foster is excited to be in an industry seemingly changing overnight, she said.“It’s all about electric and hybrid cars, keeping up with the ever-changing technology in vehicles, and seeing more and more vehicles that are aluminum now," she said. "It's going to take a certain skill level that can only be attained through the right development and training. We must stay at the forefront of tooling and education, that is the key."Our industry’s technician workforce is thinning rapidly, and we have to address that, either through developing technicians organically---i.e., within the shop---or from hiring outside the industry, which requires even more training," she continued. "Our team at Crash recognized this and established a department dedicated to keeping our technicians up to date with the most advanced classes, equipment and tooling.”Foster loves her role at Crash Champions.“We are creating an incredible culture here at Crash that is unmatched. I have been doing this for 19 years now, and I still wake up each day looking to challenge myself and change lives," she said. "To this end, I am grateful for the organization that [Crash Champions founder and CEO] Matt Ebert established here. I’m also fortunate to work with one of the most influential people of my life, [Crash Champions COO] Alan Saviano, who has mentored me for the last seven years."“Heidi’s passion, high energy and work ethic got her noticed as a leader,” Saviano said. “But it’s her relentless work ethic, extreme focus on team building, and an ability to consistently deliver results that sets her apart from the rest.”

Collision Repair Industry Consultant Won’t Let Health Issues Stop Him

What happens when your body starts to fail you, but your mind is as sharp as ever? Do you quit or do you re-invent yourself?This is a question many people in every industry---including collision repair---have to answer at some point in their careers, but it usually when approaching retirement.Chis Maimone has had to face these life-changing issues at the young age of 38 due to some serious health issues requiring more than 30 surgeries. Many people would have understandably thrown in the towel after experiencing a plethora of medical issues like the ones Maimone has encountered.But he apparently doesn’t know the word “quit,” and instead of stepping aside, he is embracing his new role as an industry consultant focusing primarily on auto body shops.Maimone comes from a body shop business family well-known throughout southern California. He earned a bachelor's degree in business administration from California Lutheran University, and entered the industry began by working at Marco's Collision Centers, which has seven locations.He’s extremely proud of the fact he played an integral role in the company’s success with a mission passion of improving the collision repair industry from the front office to the paint booth and everywhere in between.Maimone started his career in collision repair from the bottom by washing vehicles, but was learning every facet of operating the shop since day one and progressed quickly, he said.“After a short time, they put me in charge of the San Gabriel shop, where I supervised 50 employees, produced an average daily output of $32,000, generating a 50% gross profit and earned a Customer Service Index (CSI) between 98% and 100%, while keeping all of our DRPs happy,” Maimone said. “I oversaw our production process, which required every department to achieve a successful daily output while keeping our quality standards. This required knowing every vehicle's in-process and coordinating with each member who came in contact with the car."The most challenging part of Maimone’s position was checking for quality during every repair, he said.“I am a perfectionist and everyone who works with me knows it," he said. "If something was not 100% perfect, I sent it back. To be totally transparent, there were many times I wasn't the most well-loved person at the shop because I often send vehicles back due to quality issues. It was my task to protect the company's name and reputation, which meant making sure each customer's car was repaired to absolute perfection. Our goal was to affirm that the vehicle was always repaired ‘Once, Right, the First Time.’" Maimone hasn’t let his health issues get in the way of performing his job at a high level.“I used to think that to be successful it required a perfect presentation of how I appeared and carried myself,” he said. “I went from being a typical 35-year-old to a man who now uses a walker, but this did not define my success. I'm knew that I was still damn good at what I do, and now there was an unexpected ingredient of inspiration. When people see the diligence and commitment I give them, it inspires them to go the extra mile and commit to change despite my hurdles. Within my field, this is what I've always aimed to do.”As a consultant, Maimone loves motivating people to do amazing things, he said.“I've been continually drawn to my consultant role solely because I offer an approach that goes beyond the result of what other consultants may offer," he said. "My job is to advance the mindset of the entire company from I should make changes to I want to make changes! This means we aren't looking for a temporary fix but a permanent one. I am only successful if the entire team embraces the change, from the owner to the porter. When the company adopts it, the results will last."In 2014, Marco's became the first California acquisition for Service King Collision Centers.“They then chose me to be one of the first members of their Southern California market's quality assurance team,” Maimone said. “This team started with eight locations and grew to 30 locations within two years. I was meticulous when inspecting each vehicle, like I had at Marco's, but my most important role was coaching the teammates in embodying the same quality standards.”Maimone was promoted to Service King’s quality assurance team lead for the entire Southern California market within two years.“Many of my days were spent on quality inspections for different locations, which involved one-to-one training, group meetings, customized presentations and hosting national calls to help educate the entire team,” he said. “In addition to these, I was on the Pack Board for the Universal Technical Institute from 2016-2018. As an avid advocate for bringing more women into our industry, I also helped one of the UTI students become the first woman accepted into Service King's technician apprentice program."Everything changed in 2018 for Maimone.“My body started having problems, and I didn't know why. The changes were subtle at first---tingling in the legs, numbness in my feet, etc. Then my balance began to suffer, and I had difficulty walking normally. My symptoms quickly advanced, so much so that I had to leave Service King.” He was diagnosed with a tethered spinal cord, meaning he had excessive scar tissue wrapped around his spinal cord, essentially suffocating it.“Within two years, I had five spine surgeries and seven brain surgeries," Maimone said. "I lost all of my feeling from the waist down, yet the amazing thing is that I'm still able to walk with the assistance of a walker. I should be wheelchair-bound, but I continually fight and push my body's boundaries to where I know they can be. That includes fighting for my capability to get back in the field.”In December 2020, Maimone successfully returned to the workforce, albeit through a different avenue due to his spine issues. He landed a job with CARSTAR.“Coaching and making people better has always been my passion, so I decided consulting would be a perfect fit,” he said. “I was invited to be a motivational speaker at the VeriFacts Symposium within that same month. Figureheads and leaders throughout the collision repair industry were in attendance, and they learned not only my story but also the framework needed to instill a higher-than-standard collision company.”Integrating into three locations for CARSTAR and moving through their production areas on a walker seemed like a daunting task at first.“I had just spent the last 24 months battling a condition that could have made me completely paralyzed, and now I am being entrusted again with the task of guiding companies to success," he said. “What ended up surprising me was how my refusal to let my body stand in the way of my work ethic had prevented my walker from becoming a hindrance."It was an amazing experience working with the corporate staff, shop management and shop teammates," Maimone said. "I know the processes we implemented will help increase their capture rate and help them fulfill their long-term goals. Just as how I am determined to walk one day without assistance again, I too am determined to do exactly what I had done for years---make people and companies better.”

Day Job/Night Job: She Sold Her Auto Body Shop to Become an Artist

In the world of collision repair, there are a ton of multi-talented people doing other things when they’re not repairing vehicles.I would bet the average customer does not realize the tech, painter or estimator working on their car is a musician, artist, actor, writer, movie director---even the owner of a champion Frisbee dog! I have enjoyed interviewing these mega-talented individuals since I started this column in 2008 when I wrote a story about Chris Mashburn, a body tech, and his beloved Frisbee dog, Mindy.This story is about Bianca Rauser, who stepped away from the world of collision repair and sold her shop to enjoy life and pursue her art. A major tragedy in her life caused Rauser to fast track her journey, and part of that includes creating art that has quickly become a significant part of her retirement plan.How did you get into the collision repair industry?I was working for an insurance company, and had to interact with body shops a lot. I was getting tired of the Evil Empire when a shop owner offered me a job. I took it, and I absolutely loved my position. He taught me how to be an estimator and I loved everything about it.What were the most satisfying and challenging parts of your role in the industry?There are people out there who aren’t crazy about women working in this industry. It has gotten better, but it still exists. When I could make customers happy after going through the stressful situation of an accident---I loved that part. It has also been rewarding getting to know and interact with some of the most knowledgeable people in the industry.What are the biggest obstacles for the industry moving forward?Lack of education! As cars are ever-changing with legions of new technology, it is imperative to constantly train to keep up with correct procedures. I hated the fact that I had to fight with the insurance companies so that we could make safe, OE repairs. I could see that quality wasn’t always a priority and it began to become an issue. When people's safety is involved, quality is not negotiable, in my opinion.How did you get into creating art? Please describe your process.Art became an outlet for my anger and sorrow after my brother was murdered in a random act of violence. I was talking to him on the phone one day, and he told me that he was going to the store to buy bird seed. Somebody walked up to my brother and punched him and he fell and fractured his skull. He went into a coma, and three and a half weeks later, he was gone. The murderer got 18 years---seven years suspended---but he has been messing up in prison, so it looks like he will be in there for a long time. My brother was a retired doctor and I think about him every single day.Bianca Rauser is selling her pieces both through major galleries in Arkansas and nationally.I mainly create abstracts in acrylic, and will paint on any surface I find interesting. I choose colors based on my mood that day. Rarely using brushes, I opt for non-traditional methods of application such as bubble wrap, cookie cutters, funnels, plastic grocery bags, water bottles, blow torches, marbles, etc. I even used a cat toy the other day to create an interesting texture.Where do you create the art?My studio is in a climate-controlled three-car garage that has exactly enough room for zero cars due to all of my artwork and supplies.How long does it take to create a piece?From start to finish, approximately three weeks. I have several art projects going on simultaneously all the time. I am always looking for new and exciting things to create, and that’s why I am doing things like tables, coaster sets, and people see to like my clocks as well.I worked as a cake decorator for 20 years before I got into collision, so I am comfortable using the left side of my brain. It’s so therapeutic---it is amazing. I also do commissions on occasion, usually images on large canvases. If the art is going to be hanging on a wall in a shop, I will sometimes do the image in the company’s colors to tie it in to the whole look.Have you had success selling your art through galleries, to friends and/or online?All of the above! My first sales were from me just posting some of my work on my personal Facebook. I am currently in two local galleries---Akib’art and Hidden Talent, both in Fort Smith, AR---and have good experiences at artisan markets. I have a few pieces on my Facebook page, B the Art. Every time I make a sale, it’s so satisfying and fulfilling, it’s like presenting a beautifully repaired vehicle to a customer on a Friday.Rauser’s art is hanging in body shops throughout the country and gaining top reviews for its use of color and shapes.Why did you retire from the body shop life?I had a talented young buyer whom I felt comfortable with taking over what I built. My decision to sell was based upon my frustration with the unethical practices of insurance companies. My original plan was 10 years, but then the murder of my brother altered my perspective and I decided to hand it off to some really great people, and it’s turned out to be a great decision.What else are you doing during your retirement?Traveling, cooking, fishing and spending quality time with friends. And of course, making art and hopefully selling art.What mediums do you use and are you thinking of using new things to create art?Mainly I use acrylic on canvas, but I am getting into alcohol inks and pottery as well. I am open-minded to try all sorts of items and products to create a spectacular---or not!---piece of art. I have discovered that art is certainly subjective, and some of my favorite pieces are of little interest to people, while other articles I don’t care for seem to be popular. It “pays” to have a wide variety of exhibits.

TikTok’s Latest ‘Kia Challenge’ Encourages Users to Steal Cars

Written by Brad Anderson, CarScoopsA viral challenge across TikTok and YouTube has led to a spike in thefts of Kia and Hyundai models throughout the U.S.The "Kia Challenge" shows social media users how to steal certain Kia and Hyundai models by simply removing the plastic cowl under the steering column and using a USB cable.The issue has become particularly prevalent in Milwaukee, WI, where there is a group of young teenagers known as the "Kia Boys" who have become notorious for stealing cars and taking them on dangerous joyrides.It’s not just in Milwaukee where car thefts have surged though. In St. Petersburg, FL, the police department said 23 of the 56 cars stolen on local streets since July 11 have been Kia and Hyundai models model year 2021 and older. Writing on Twitter, authorities encouraged Hyundai and Kia owners to be cautious.“Anyone with a Kia/Hyundai that uses a key, please #lockitup,” it wrote.Speaking with the Tampa Bay Times, police said Kia models produced from 2011 and 2012 and Hyundai models from 2015 to 2021 have a vulnerability that means the ignition can be easily bypassed. Most of the individuals stealing Kia and Hyundai models are aged between 14 and 17.St. Petersburg Police Department Sgt. Cody Lance said the majority of the cars stolen are unlocked and encouraged owners to always lock their vehicles. He also encouraged the use of steering wheel locks and said parking vulnerable Hyundai and Kia models behind other vehicles can make them more difficult to steal.The trend is spreading across the country. Authorities in St. Paul, MN, have reported a more than 1,300% increase in Kia thefts from last year and an 854% increase in stolen Hyundais. In Grand Rapids, MI, Hyundai and Kia models also made up roughly 45% of the city’s auto thefts in June. Spikes in thefts have also been reported in St. Louis, Memphis, Cincinnati and Columbus.The two car manufacturers said they were aware of the increase in thefts and noted all of their current models are fitted with engine immobilizers.We thank CarScoops for reprint permission.

Florida Trans Am Shop Burns

Fire claimed two classic cars at Trans Am Specialties of Florida during the final weekend of March.It broke out in the middle of the night, but thankfully the owner was able to push several Pontiac Trans Ams outside before they too were lost. Even better, nobody was hurt in the blaze.Despite the good news, the loss of a Pontiac Trans Am which was personally owned by the late Burt Reynolds is tragic. With the "Smokey and the Bandit" actor gone, and the impact the actor had on the Trans Am community, having one of the few connections to him destroyed is too much.The shop didn’t release information on the second Trans Am totaled in the fire; however, a member of Facebook group Rotting Musclecars and Old Tin claimed it was the first 1977 Pontiac Trans Am SE Y82 Smokey and the Bandit Special Edition Trans Am ever made.It also didn’t specify if any of the cars pushed out the shop suffered damage, although a photo shows two sitting in the shop with pretty serious damage from heat, smoke and falling debris.Of the many cars saved from the fire was the only surviving Knight Rider KITT Super Pursuit Mode car created by Jay Orberg. While it’s sad the other two cars were destroyed, another piece of history was preserved for future generations to appreciate.Also suffering serious damage in the fire was the shop’s main offices and Trans Am memorabilia kept there.In a Facebook post, Trans Am Specialties of Florida said it would be able to get back to work soon after the cleanup process.We thank Motorious for reprint permission.

A Deeper Look at Crash Champions' Merger with Service King

Written by David Roberts, managing director of Focus AdvisorsAfter months of speculation about the future of Service King, a blockbuster merger with Crash Champions was announced to Service King managers on July 15.The two consolidators will merge and create a 550+ shop operation with upwards of $2 billion in annualized sales.While still smaller than Gerber and far behind Caliber, this new entity will be competing coast to coast with its two larger national competitors, as well as six smaller super-regional MSOs: the fast-growing Classic Collision with nearly 200 shops, Joe Hudson, Collision Right, Kaizen Collision, Quality Collision, Vive Collision and three more emerging private equity investors who have yet to reveal their first platforms.Crash set out three years ago to compete directly with Caliber, Gerber and Service King. It found an aggressive financial partner in Alvarez & Marsal Capital. They proved they could rapidly acquire and build an extensive, experienced management team.A New Sponsor and a Strategic CombinationFor much of the last six months, Crash’s investment bank was circulating an extensive investment memorandum, seeking a new private equity sponsor. The interest was substantial because of the aggressive growth under Matt Ebert’s leadership, the management team he had assembled and the extensive pipeline of prospective acquisitions.During the same period, the investors in Service King were looking for a resolution to its deteriorating financial performance. Clearlake Capital, which has multiple investment mandates including investing in debt securities, acquired a control position in the Service King bonds. This position allowed them to negotiate a debt conversion to new equity and an extension of other debt obligations. In addition, Clearlake injected a reported $200 million in cash.Crash was looking for capital to continue its rapid growth. Clearlake was looking for a partner to help manage a billion dollar investment in collision repair. The resulting merger is a combination of a deep pocketed capital sponsor, extensive management team, geographic penetration and scale that now rivals its two biggest competitors.Crash Champions has gained a major influx of assets and probably some cash as well. We don't know exactly what the combined balance sheet will look like, but total debt to capital will be much more reasonable for the combined companies. We would expect Crash’s acquisition program would be more subdued for a period as it integrates the Service King shops.However, given the success of their program in the last three years, there is probably a substantial pipeline of commitments that will be completed. And the deep pockets of Clearlake will likely allow Crash to contemplate many, as well as larger, transactions.BenefitsHuge increase in revenues and scale. Unusual opportunities to attain years’ worth of acquisition and revenue growth seldom present themselves in the collision repair industry. Crash and Clearlake seized that opportunity.Complementary footprints. Overlapping markets are strengthened while entry into new markets is extensive for Crash.Improved negotiating power with insurance companies. Capacity in many markets is under severe constraints with longer and longer length-of-repair periods. In many markets, finding capacity for damaged vehicles is driving up reimbursement rates to the benefit of scaled operations with excess or repurposed capacity that can adjust to demand.Improved purchasing. From paint to parts to consumables to sublet services, scale has increased the advantages to the largest consolidators.Spreading overhead. Merging the back offices of the two entities will yield considerable savings and standardization.ChallengesIntegration. Writing checks to make acquisitions is the easy part of expanding. Integrating the operations and maintaining margins is the larger challenge. This said, Clearlake has a strong track record of building platforms and integrating add-ons.Technician retention. Every competitor will be seeking to pry away technicians during the uncertainty of integration.Merging management teams. Despite the prior experience of many Crash executives working for Service King, merging functions and staffing is always fraught with different operating styles, divergent histories, success and disappointments.A Reunion of SortsIn some ways, the merger represents a reunion of key members of former Service King executives with the assets they used to manage. There are dozens of former Service King managers and executives who comprise the senior and mid-level leadership of Crash Champions. It is not unreasonable to imagine this team has learned some new lessons since departing Service King and joining Crash that will allow them to more effectively integrate the two organizations.Expanded FootprintCrash Champions has been building out across the country in multiple attractive markets---Southern and Northern California, Florida, Colorado, Chicago, Wisconsin, Washington, D.C., and Philadelphia.Service King had an enviable footprint across the West, Southwest, Texas and Chicago.The two firms overlapped in some markets where neither was dominant. The combined numbers in these markets are considerably more scalable and efficient. In other markets, each had considerable scale without duplicating the other’s positions.With the merger, Crash enters 12 new states and several of the fastest growing metropolitan areas around the country such as Nashville, Atlanta, Oklahoma City, Omaha, Kansas City, Las Vegas, Salt Lake City, Little Rock and Charlotte. The expansion from Philadelphia to Miami with major opportunities in Washington, D.C., Charlotte, Atlanta and all the Florida cities provide a highly credible East Coast footprint.In the Upper Midwest, with Chicago and Wisconsin, Detroit and Ohio, Crash stakes out another region for further expansion. In the Mountain and Southwest states, Crash becomes a dominant player from Idaho and Montana to Arizona including Denver, Salt Lake City, Las Vegas and Phoenix.The best markets however are the largest. First Texas, then Northern and Southern California, Seattle and Florida.Texas---the grand prize---96 locations in a state where Caliber dominates and Gerber is a weak third player. The original Service King locations owned by Eddie Lennox are the core operations in the best performing region for Service King.Market OverlapsCrash has a very strong position in Northern California with the acquisition of Mike’s Auto Body. With the addition of Service King’s South Bay and Sacramento shops, it is a strong No. 2 to Caliber.The combination of Crash’s 30 shops in Southern California with 25 of Service King gives them a stronger footprint in the nation’s largest market. However, even the combination of these two still leaves them a very distant second to Caliber.While 37 total shops is modest, the coverage across the Washington, D.C., and Philadelphia region is highly credible.Combined operations in Florida with 47 shops improves their penetration in that market.What to Expect NextThe extraneous markets of the combined firm without critical mass may become available to other regional MSOs. One of the challenges will be prioritizing scarce management talent to the most EBITDA productive markets.Expect some further combinations among the next tier of multi-regional MSOs. Expect more investment interest in the collision repair industry among private equity firms. With three multi-billion revenue firms, the probability of further consolidation continues to increase.Source: Focus Advisors

Crash Champions to Merge with Service King

Crash Champions announced July 14 it has entered into an agreement to receive a growth investment from Clearlake Capital Group and will simultaneously execute a strategic transaction with Service King Collision.Crash Champions’ management team and operating partners, alongside Clearlake, will lead the combined company going forward.Following closing and integration, the company will operate more than 550 total locations across 35 states and Washington, D.C., under the Crash Champions name and banner.Terms of the transaction, which is subject to customary closing conditions including regulatory clearances, were not disclosed.Founded in 1999 by Matt Ebert, Crash Champions is a U.S. operator of more than 200 collision repair facilities. Having expanded from a single storefront in Chicago into a present-day network of 20 states, each location is built on the company’s founder and operator-led values, championing customer service and workplace satisfaction.Since its founding in 1976, Service King has grown into one of the industry’s largest collision repair platforms with more than 330 locations spanning 24 states. Today, Service King offers deep footprint coverage in many of the nation’s fastest growing MSAs, including Atlanta, Austin, Dallas, Houston, Las Vegas, Nashville, Phoenix, Salt Lake City, San Antonio, Seattle and Washington, D.C.Partnering with Crash Champions will allow Service King to better serve its customers and carrier partners, while driving long-term value for employees, vendors and investors.“Today is an exciting day for Crash Champions and another major milestone in our growth story,” said Ebert, founder and CEO of Crash Champions. “This strategic combination further enhances our ability to serve our customers and insurance partners while creating advancement opportunities for our team members across both organizations.”As part of the transaction, Clearlake is providing growth capital to Crash Champions. This marks Clearlake’s second investment in the collision repair industry, having recently announced the capital infusion and debt recapitalization of Service King.Crash Champions’ management team will execute on the company’s go-forward strategy with Clearlake’s support.“This investment was driven by our thematic-based approach to investing in the automotive aftermarket and our specific identification of the collision repair sector as an ecosystem at a historical inflection point,” said José E. Feliciano, co-founder and managing partner, and Colin Leonard, partner of Clearlake. “The proliferation of vehicle technology has put unique demands on the shop operators to invest in OEM certifications, equipment and, most importantly, their personnel to deliver safe and efficient service."We are impressed by Matt and the Crash Champions leadership team and admire their commitment to customer service and re-investment in both their operations and talent. It is exciting to partner with them to create this differentiated national platform, and we look forward to utilizing our O.P.S.® framework to unlock the inherent value of this combination and position the platform for continued strong growth.”Following the closing of this deal, the combined company’s total workforce will exceed 9,200 team members.Crash Champions and Service King have highly complementary geographic footprints with limited overlap. During the post-closing integration activities, both Crash Champions and Service King will continue operating at all service centers nationwide without interruption.“We remain committed to the operator-first mindset that has guided us throughout our history. This approach has enabled us to successfully integrate hundreds of shops and thousands of employees into one of the leading employers in the collision repair industry. As we welcome Service King’s customers and skilled team members into our family, we will continue this tradition and earn their trust every day,” said Ebert.Source: Crash Champions

Pennsylvania Auto Body Shop Owner Charged with Submitting $426K in Falsified Insurance Claims

The owner of Chalfont Collision Center in Chalfont, PA, submitted nearly 300 false insurance claims over several years to four insurance companies, pocketing more than $426,000 in payouts.John Paul Reis, 56, of Newtown Township, PA, turned himself in Aug. 25 on charges of insurance fraud, deceptive business practices, forgery and theft by deception, all third-degree felonies. He was arraigned by Magisterial District Judge Regina Armitage, who set bail at $150,000 unsecured.The charges filed against Reis are the result of a four-year investigation by the Bucks County District Attorney’s Office Insurance Fraud Unit, that began in September 2018 after receiving a referral from Erie Insurance’s Special Investigations Unit alleging Chalfont Collision Center, at 74 Park Ave., was enhancing and or creating damage to customers’ vehicles to inflate insurance estimates.The investigation found Reis, the owner of Chalfont Collision Center, concocted an insurance fraud scheme where he would wipe a compound mixture onto the body of several vehicles and sometimes strike them with a hammer, making it appear as if the vehicles were involved in an accident, so he could bill insurance companies for more money.Because Chalfont Collision Center was a direct repair center for Erie Insurance and numerous other insurance companies, the collision center’s credentials meant they were verified by the insurance companies and were authorized to write estimates, complete the repairs and submit the estimate/billing documents for payment, speeding up repair time for customers.As the investigation progressed, Bucks County detectives contacted other insurance companies to see if they had also gotten falsified insurance claims from Chalfont Collision. Erie Insurance, Nationwide Insurance, CSAA Insurance Group and Liberty Mutual Insurance collectively identified 289 estimates that contained artificial or inflated damages incorporated into the true facts of the estimates, submitted by Chalfont Collision between 2014 and 2022.The insurance companies identified $426,233.64 in fraudulent claims paid to Chalfont Collision Center, including 185 by Liberty Mutual Insurance for $312,265.83.Bucks County detectives, along with the Pennsylvania Office of Attorney General and the Central Bucks Regional Police Department, executed a search warrant at Chalfont Collision on March 25, seizing evidence that included photographs, files and computers.“There is a tendency for some people to think of insurance fraud as a victimless crime,” District Attorney Matt Weintraub said. “That is, until the financial losses from those fraudulent claims are passed onto us in the form of higher insurance rates. I commend our investigators and prosecutors in our Insurance Fraud Unit for holding Mr. Reis and his body shop criminally and financially accountable.”This investigation was conducted by the Bucks County detectives, with assistance of Central Bucks Regional Police Department, the Attorney General’s Office and the Special Investigations Units for Erie Insurance, Nationwide Insurance, CSAA Insurance Group and Liberty Mutual Insurance.This case is assigned for prosecution to Deputy District Attorney Marc J. Furber.Source: Bucks County District Attorney's Office

Does Being a Green Shop Improve the Bottom Line?

Known as the Greenest Shop in the USA, Selecta Body Shop in San Francisco’s Mission District has received major praise, top reviews and now a prestigious award for running an environmentally responsible business.But, the burning questions that almost every body shop owner has are, “Does being green increase profits or in the end, or does it just help the owner sleep better at night? Do customers care and maybe more importantly---do the insurance companies care?”Making it his priority to be 100% green from the day he opened his doors, Jeremy "JR" Hubbard, the owner of Selecta Auto Body has now been in operation at his current location for almost two years. Since opening, he’s refined his processes and further embraced the green way, while trying to be a fair employer in every aspect of his business.Selecta Auto Body is the only collision repairer in the country that has achieved B-Corp certification, by meeting rigorous standards of social and environmental performance, accountability and transparency. Sure, Hubbard wants to make money and fix cars right, but more than anything else he wants to run his business “with a conscience.”“I’m a father and an employer obviously and I want to be able to make a profit,” Hubbard said. “But, I also want to be a fair employer and a responsible member of the business community. Part of being a green operator in a very environmentally-conscious city, like San Francisco, and maintaining the B-Corp certification means that I can hopefully make money, but also we want everyone to win---my customers, my family, my neighbors and my employees.”It took two years of hard work to turn an old building into Selecta’s new 10,000-square foot facility and it ate up just about all of Hubbard’s funds to make it a reality, he said. But since starting business in April 2013, the numbers have slowly edged up, to the point where he can say that November 2014 was his first profitable month after fixing 65 cars.“We still want to do 100 cars monthly, because we can handle the volume and that’s been our goal,” Hubbard explained. “The numbers are improving every month and the future looks solid. We picked up two great DRPs during the last four months of 2014 and now we have a total of three. We easily absorbed the increased workload during the fourth quarter and now we’re excited about 2015.”Last November, Selecta Body Shop won a significant award at the 2014 SEMA Show in Las Vegas, when AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) announced that three North American companies were selected as winners of the fifth annual FIT Sustainability Award, an industry recognition program honoring businesses and organizations that are actively engaged in practices that advance the concepts of sustainability. Selecta took one of the three coveted spots.“Being green is definitely a plus, especially when it comes to marketing,” Hubbard said. “It all works hand in hand and awards like the FIT Sustainability Award from AkzoNobel are a huge deal. To be honored at a show like SEMA and having other shops interested in what we’re doing, that’s beneficial for us and the industry as a whole.”Hubbard truly walks the walk when it comes to being green. Some of the more notable things he’s done to his shop include installing motion sensors in every room of the shop, so the lights turn off when the room is not in use, and uncovering the building’s skylights and front windows to use natural light whenever possible. He also mounted more than 350 pothos plants on the wall to bring fresh air to the shop. He purchased an oversized Global Finishing Solutions downdraft heated spray booth so that he can paint more cars and parts simultaneously, thereby saving time and materials. The shop features two curtained-off areas, one dedicated for prep and the other for detailing work. Hubbard is also gearing up for the collision industry’s rush to aluminum.“We know that aluminum is coming, but to what degree nobody really knows,” Hubbard said. “So, right now we have an area dedicated for aluminum work when we get it. We don’t have a ton of extra space here and we’re taking full advantage of what we currently have, but when aluminum becomes a significant amount of our volume, we’re ready.”There was definitely an added cost to building what Hubbard describes as “the ultimate green shop,” but once it was up an and running, it was all worth it, he said.“Some shop owners may think it costs a lot more to be green, but it’s really not that more expensive overall, because we’ve cut our waste and it is definitely showing up in our bottom line now. We don’t waste anything and we’re coming from that mindset, so once you get into being green, the benefits start to become apparent.”By using more natural light whenever possible, painting all of his floors with reflective paint, insulating his ceilings to retain heat, and installing motion sensors on all his lights, he has been able to drastically lower his utility bills. And of course, by saving paint, clear coat and sealers with every car painted, it adds up to offset his original investment.“It starts to make more and more sense after you’ve done it for a while,” Hubbard said. “We’re using fewer products to fix our customers’ cars without sacrificing quality and that’s the important thing.”Do customers in San Francisco really care about the fact that Selecta Body Shop is a green shop and did it help him to land his most recent DRPs?“I would say yes to both questions,” Hubbard said. “I believe 100% that our customers care. If they don’t know it initially, we let them know and most of them say very positive things. If we do a good job on their car and on top of that we’re a green shop, yes—I believe they will come back. And do the insurance companies see any value in the fact that we’re doing things with the environment in mind? I definitely do---if they can align themselves with a forward-thinking, responsible company---why not?”

Online Remarketing Gets Your Name Out There…Again

“Tell them once and then tell them again,” an old ad executive told me years ago, long before the internet, web sites or applications existed. And it still pertains today, because although marketing and advertising change almost daily, the main concept behind branding is still the same.When it comes to branding, it’s still all about impressions and getting your message to the right audience. The goal is to brand your name into the customers’ psyche, so that when someone says “body shop” or “car accident” they think of you, immediately and even sub-consciously. When I think of burgers I think of In ‘N Out and when I think of nice cars, my mental Rolodex goes now to Tesla (used to be Mercedes). I don’t consciously do it, my brain does all the work---and that’s called effective branding.To make your name the go-to brand for collision repair in your area means you have to hammer away at your branding efforts all the time. Many body shops have gravitated away from things such as e-mail marketing, broadcast advertising and direct mail to put their money into online remarketing. So, what exactly is remarketing and how does it work?The world of online advertising is a whole new game, as marketing people get more sophisticated about the delivery of their branding messages. Remarketing allows you to show ads to consumers who have previously visited your website or used your mobile app. When people leave your website, remarketing helps you reconnect with them by showing relevant ads as they browse the web, use mobile apps, or do searches on Google, Bing, etc.The websites on which your ads will appear can be found by browsing through over 2 million websites and mobile apps that are part of the Google Display Network, for example. Automotive sites, insurance sites and sites belonging to popular companies in your region are ideal. Any company doing online marketing can assist you in designating websites that are affordable for your needs and are most likely to attract people who have previously visited your site.Pricing for remarketing ads revolves around automated bid strategies like target CPA and ROAS. Real-time bidding calculates the optimal bid for the person viewing your ad, thereby helping you to win the ad auction with the best possible price. There's no extra cost to use Google's auction, because it’s totally based on what the market will bear. Web sites with heavy traffic may not be ideal for you, because they will cost you too much per impression. But, by using a strategy and sticking to it, such as choosing sites that are more targeted for your shop, you can get your price of each impression down to a very affordable level.Luke Middendorf, a marketing consultant at WSI Connect in Concord, CA, believes that dynamic remarketing offers a lot of options for any business that wants to push their brand online.“Remarketing is an ideal vehicle for the collision repair industry, because it keeps your name on the users’ computers or smart devices," he explained. "We know from research that 96% of the time people visit a website and then don’t complete an action. With remarketing, we can track them once they’ve visited your site and then follow them as they go to other sites. We can more specifically targeted them and hopefully re-connect with them several times, if possible. We know they showed some level of interest in your company because they looked at your site, so remarketing keeps them in the loop and leverages your brand over and over again. It’s all about targeting and re-engaging your audience, because frequency is crucial.”David Moore, the owner of Collision Websites in Tulsa, OK, sees definite value in remarketing for automotive repair companies, because branding is king in any service-related industry.“Obviously, getting your car fixed is not an impulse buy, like purchasing products such as clothing, electronics or food online,” Moore explained. “Remarketing is an ideal way to leverage your brand over and over again and it allows for fairly precise targeting. If you’re looking for women between the ages of 20-30, you can easily devise a plan to reach them. With remarketing, you already know that they have some interest in your shop, because they’ve visited your site once or more in the past. You’re reemphasizing your message, so it’s more powerful than as if you’re trying to reach people for the first time. They know your name already, so in a way you’ve done half the work in advance.”There are several ways to remarket your shop online using remarketing techniques:Standard remarketing: Show ads to your past visitors as they browse through select websites you select.Dynamic remarketing: Show dynamic ads to past visitors with products and services they viewed on your website as they browse through sites you’ve selected.Remarketing for mobile apps: Show ads to people who have used your mobile app or mobile website as they use other mobile apps or browse other mobile websites.Remarketing lists for search ads: Show ads to your past visitors as they do follow-up searches for what they need on Google, after leaving your website.Video remarketing: Show ads to people who have interacted with your videos or YouTube channel as they use YouTube and browse through videos, websites and apps you’ve designated.For companies that aren’t running sales or promotions and are simply trying to get their name out there on a regular basis, remarketing online is one of the best and newest ways to do it. Start with a small budget to test the waters and gauge the response, but if you’re doing any online marketing or advertising online, remarketing may be the ideal way to tell them once and then tell them again.

Lead with Caution Whenever Contracting ANY Marketing Firm

Many body shops will use a piece of equipment, paint or other products in their shops on a trial basis before they decide to purchase them. They will use a computer management program to see if it truly works and if their staff is comfortable before integrating it into their day-to-day operations.But, why do some of these same body shops sign up and spend significant amounts of money with marketing companies before checking their references or even doing their basic due diligence?Body shops know what they know and what they’re good at---and that’s fixing cars, but what do they really know about marketing? Through training and classes, some shop owners and managers are savvy about press relations, direct mail marketing, online marketing, branding, collateral and even things like graphic design and blog creation. But in the end there is too much to know and most of this stuff is out of the average body shop owner’s area of expertise.Unfortunately, some marketing companies realized long ago that body shops don’t know much about marketing and for that reason unscrupulous people will take advantage of collision repairers and overcharge them for services and products, all the while underperforming. We’ve seen it in one form or another more than a few times all over the country. For a long time, shops were getting phone calls from companies that said they could get their name at the No. 1 position on Google within just a few weeks. Body shop owners in competitive markets jumped on these offers. Without checking out the companies first, they simply took their word. In the end, some shops lost as much as $5,000 to $8,000, especially the ones with multiple locations.Organic Search Engine Optimization (SEO) takes time and effort, and by just doing a minimum amount of research, the victimized shops would have known that these fly-by-night virtual companies were giving shops an offer that was too good to be true. At first, the deal appeared to be solid. The shop owner looked at his web site and indeed saw that his shop was now No. 1 on Google. Obviously, they didn’t know what "black hat" SEO was or about the repercussions involved.Black hat SEO is a practice that increases a page's ranking in search engines through means that violate the company’s---Google in this case---terms of service. Implementing black hat SEO tactics and strategies can get your site banned from search engines, excluding you from the number one traffic referral source on the Internet, which is exactly what happened to these poor body shops.After paying the marketing company, they found out that Google was shutting their web site down without explanation---and good luck trying to get someone from Google on the phone.In this article, I’ve decided not to mention any company names, because hopefully if they read this, they will see the light and gravitate away from the dark side. All of the body shop owners and managers I interviewed for this piece also did not want to talk on the record, primarily because they’re currently in court with some of these so-called marketing companies. Also, please note most of the automotive marketing companies out there are 100% honest and do great work, but from what I’ve been hearing recently, a few bad apples have negatively impacted the others.It all comes down to what every company wants and expects from any vendor---authenticity, complete transparency and the absence of “hidden fees” and “blatant up-selling.” Here are some tips for not getting ripped off by an unscrupulous marketing or advertising company:Check ALL their references.The references that most companies provide are normally the ones they’ve cleared, so do some research and dig a little deeper. Call the local Chamber of Commerce and ask around. Also check out Yelp and Google them for possible consumer complaints. There’s also a great site called Rip-Off Report that can help you as you sort through the shady operators in the hopes of finding a good company. Another great way to sort out the fraudsters is to check the Secretary of State’s website to make certain that they are registered and even legal to do business in your state. Just like with body shops, any consumer should only work with a licensed marketing company for obvious reasons.Let them prove themselves.One distributor of collision repair products told one marketing company that he wanted to work with them, but for at least the first project, full payment would come but only after the job was completed. You should let all your vendors prove themselves first and especially with marketing companies. Once they get your money, they hold the reins, so don’t give it up until they’ve shown what they can do. One shop in northern California contracted with a marketing company and then suddenly the bills started coming in with ridiculous charges, including “invoicing charges." That’s right---the company was charging them for sending them their bill! Then, when they tried to cancel the company’s services, they hit the shop with a bill close to $10,000 for “cancellation fees." Now the shop’s owners have to travel to the Midwest to defend themselves in a small claims court, all because they didn’t carefully check out the company first.Read all contracts carefully.One body shop owner foolishly signed multiple contracts with one marketing company thinking they were all copies, which turned out to be a major mistake, because each one was different. If any company shows you more than one contract---beware.Stay local.One body shop hired a company to do a new logo, unaware of the fact that they were located in India. They never got the logo after transferring the money through PayPal. When the deal fell apart, there was no one in this country to sue. Retain control by working with companies that are close enough geographically that if something goes sideways, you can go there and deal with it. And if a company does not have a physical location---listing only a PO Box, for example---that too is a red flag.If it looks too good to be true, it probably is.If a marketing company claims that they will bring you a certain number of cars by using their services, be wary---very wary. One poor body shop manager was told by a shady company that they can double his business by signing up with them for a year. One year later, his business was down 30% due to the fact that three MSOs moved into his territory, despite all of their marketing efforts. If any marketing firm guarantees anything, stay away, because not even the most talented marketing minds in the world can assure you things like more cars or more revenue.Tell the world.If you’ve had a bad experience with any company, let your community know by Yelping them or at least telling your friends, associates and colleagues. Unscrupulous marketing companies use the old “turn and burn” technique, because they know there are a ton of businesses out there that they can scam. Don’t make it easy for them by keeping it your little secret because once they’ve wronged you, they’re likely just out there looking to do it to the next guy.Like I mentioned earlier, most marketing companies and ad agencies are honest, accountable and do amazing work, but there will always be that handful that are focused more on a quick buck than on quality. So beware and follow your instincts---but also do your research and check them out carefully before signing on the line that is dotted.

Body Shops Nationwide are Joining the Blog Party

One of the items on my marketing to-do list for 2015 was "get a blog," and I can’t take credit for it, but there are more body shop blogs out there now than ever in the collision industry.Four years ago, there were 156 million blogs in existence, and today there are more than 180 million worldwide. Shops that didn’t even have websites now have them, complete with blogs that contain weekly posts, sometimes more. Blogs are no longer a fad or even a trend---no, they’re here to stay and gaining traction more and more as they stampede into the World Wide Web.A decade ago, people didn’t really take blogs seriously. They thought a blog was for amateur poets, soccer moms or quilting clubs, but those days are long gone. Blogs are an ideal way to enhance your Search Engine Optimization (SEO) efforts because Google indexes blog articles and will move your company’s name up their rankings by regularly sending its search spiders through your blog. And with more players now in the SEO game, blogs are all about getting companies to that desirable first page of Google.It’s inexpensive to create a blog using WordPress, for example, and linking it to your website. In a busy shop, there are a lot of things going on to blog about, including employee birthdays, holiday events such as a company costume contest for Halloween, new babies, I-CAR certifications, community mixers and so much more. Once you start searching out topics for blog articles, you’ll see that there is a wealth of great things for you to write about.With blogs now the norm rather than the exception, it’s hard to believe that many body shop owners still don’t know exactly what they are, so here is a rather brief description.A blog---a truncation of the expression weblog---is a discussion or informational site published on the World Wide Web and consisting of discrete entries called "posts" typically displayed in reverse chronological order.Until 2009, blogs were usually the work of a single individual or occasionally of a small group, and often covered a single subject. More recently "multi-author blogs" (MABs) have developed, with posts written by large numbers of authors and professionally edited. The rise of Twitter and other "microblogging" systems helps integrate MABs and single-author blogs into societal news streams.Rich Pannazzo is the COO at AutoBody-Review.com in Chino Hills, CA, a company that was created to increase capture ratios and instill confidence in consumers when referred to a body shop by DRP partners, dealers and previous customers. They help their shops find local shops nearby, tour their facilities and schedule an appointment quickly and easily using AutoBody-Review.com. In addition, the company also assists body shop clients with marketing efforts---including blogs.“The collision industry is changing on multiple levels,” Pannazzo said. “Not only is their rampant consolidation happening at an unprecedented rate, there is also a significant change in the demographics of the typical collision repair customer. Cross-generation communication skills are essential to any marketing initiative in our industry. Blogging, for instance, has become an effective way of getting your brand in front of consumers as well as helping your Search Engine Optimization efforts. In order to be effective however, your blog must be relevant, routinely updated and well-scripted.”“Collision repairers are not, by nature, good marketing professionals,” Pannazzo said. “And even a vast majority of marketing professionals are not good collision repair marketers. Collision repair customers are unique because 95% of a shop’s business comes from insurance, dealer and customer referrals. Marketing to get 2% of the 5% that are left just isn’t a logical course of action, nor is it economically efficient. Companies such as AutoBody-Review.com have figured this out. Everything done to promote the brands represented by AutoBody-Review.com is specifically targeted at increasing the capture rate of the referral business being sent to those locations. Even down to the unique blogs posted for their thousands of customers each month. No two blogs are identical and each blog is tailored to the specific body shop that it is being written for.”Eric Gouldsberry is a Silicon Valley-based media consultant and owns EGAD, a company that designs websites and adjoining blogs for body shops and large automotive companies that end up at the top of search results on a consistent basis. He has seen the incredible growth of the blog universe and the recent popularity of blogs among body shops large and small.“The Hummingbird algorithm went into effect during the summer of 2013 when Google announced the change on the eve of the company's 15th anniversary,” Gouldsberry explained. “It was their first major update to their search algorithm since 2010. At that time, people didn’t realize that it would lead to the explosion of blogs. Hummingbird is all about content and what they call ‘semantic search.’ Google now focuses more attention to each word in a query, ensuring that the whole query---the entire sentence or conversation or meaning---is taken into account rather than just a handful of keywords or word streams.”So, why are so many body shops finally coming to the blog party?“Body shops talk a lot to each other and they’re always looking at the shop down the street,” Gouldsberry said. “Look at all of the body shops that are gearing up to work on aluminum vehicles, for example? The shops that started doing blogs three to four years ago are in a prime position, because they’ve already established a top position. It won’t be easy to unseat those shops, but it’s never too late to improve your spot by blogging. If you’re thinking about a blog, I would tell you start today, because right now the stragglers are getting ready to enter the fray!”

Women Shop Owners and Female Consumers Get Help from AskPatty.com

When a car needs repairs, it's likely that a woman will be bringing it into your shop. Those numbers have climbed over the years, and now the experts claim that 73% of all automotive repair customers are female.In 2012, there were more women than men with driver's licenses for the very first time. On top of that, women have become more savvy consumers and can't be bamboozled anymore with technical terms and industry speak.In addition, the automotive repair world now has more female shop owners, techs and estimators than ever, but there is still much work to do. That is why AskPatty.com was created to help. With its headquarters in Thousand Oaks, CA, AskPatty.com, Inc. aims to revolutionize the women's automotive retail market by educating business owners and repair professionals to the needs of their women customers.For consumers, the AskPatty.com website is a safe and reliable source for expert automotive advice and research. For auto dealers, tire dealers, collision centers, auto service and repair centers, the AskPatty.com Certified Female Friendly® program is designed to train and certify automotive retail and service centers on how to increase loyalty with women customers. The idea is that knowledge is empowering and by doing a better job, more and more women will be able to succeed in a male-dominated industry.Jody DeVere is the CEO of AskPatty.com and the founder of the organization. She's a nationally-known expert on social media marketing to women as well as being a renowned journalist, car care expert and safety spokesperson within the automotive industry. Her life's mission is to promote, mentor and support automotive careers for women and she speaks to groups including the American Car Care Council, Mercedes-Benz Corporate, the National Automobile Dealer Association (NADA), National Independent Automobile Dealer Association (NIADA), Car Care Council Women’s Board and the Association of Automotive Internet Sales Professionals.Celebrating its 10th anniversary this year, AskPatty.com was started by DeVere when she saw a problem and began looking for a viable solution."There was such a disconnect between qualified women and automotive businesses such as car dealerships, service departments and collision centers, for example," DeVere said. "So, back in 2005 when I was at SEMA, I began to formulate a program to help women in this industry. I knew it had to be built on education, interactive training and it had to have a certification module."With more women working in a wide range of other professions, DeVere knew that the auto repair industry needed to catch up."After talking to literally thousands of women, I found out that they were so discouraged by the prospects of getting hired in this industry, that they weren't even applying. So, we decided to flip the script and become a champion and advocate for women in these fields. We often serve as the first point of contact for women who are seeking the very best in car sales and service across the United States and Canada."The AskPatty.com Certified Female Friendly® program enables women and female-owned businesses to improve their skill sets and increase their revenues."For body shops, we teach women professionals about how to enhance their customer service through a series of internet 3.5-hour classes. There are 18 different modules and all of them are designed specifically for the automotive industry. It isn't just testing either, we also provide training, interactive teaching and personal coaching. When it comes to succeeding in a retail culture---whether it's a tire store, an aftermarket parts distributor, car dealership or a large collision center---there are many skills that are universal and will work in all these environments."When women join AskPatty.com, they also get an opportunity to send questions to a panel of female automotive experts, access to a certified female-friendly automotive retailer search database of car dealers, tire dealers, collision centers and service and repair centers, as well as a wide range of educational webinars and other helpful information through the organization's blog, according to DeVere.The message behind AskPatty.com is that women need to stick together, and by doing so, they can revolutionize the consumer experience for female consumers while becoming better owners and employees."At AskPatty.com, we have a two-pronged mission and a big part of that is helping female consumers to become more informed and savvy about all things automotive," DeVere said. "We want them to have a positive experience every time they take their car in for a repair. It's still a male-dominated industry, but the game is changing, so we need to be as educated as we can as customers as well as owners and managers. In the old days, the men would take the car into the shop, but those roles have now changed and are constantly evolving."What will AskPatty.com be doing in 10-15 years, when more and more women are in upper management positions with automotive-related businesses?"We've created a lot of trust with our members and women in general, by being transparent and proving that we really care about women, as both automotive professionals and consumers. So, I believe that the next decade will be amazing for women in this industry and that's why we're looking forward to helping them and enabling them to be even more effective and successful."

Day Job/Night Job: Mixing Paints During the Day and Cocktails at Night

Sean Fitzgerald, 33, has a busy work schedule as he balances two jobs---body shop owner and bartender---but he makes it all work because he stresses quality in everything he does.While running the show at Phantom Autobody in Jeffersonville, IN, he is a hands-on owner who still paints most of the vehicles that come into his shop. And after his 10-12 hour days fixing cars and doing custom paint, he is off to work as a bartender to help him pay the bills.Fitzgerald started working initially in the printing industry, but he always had his sights on painting cars and making them look spectacular."I was working as a printer during the day when I was 18 and 19 and then in the evenings and on the weekends I was building street race cars," he said. "We would install turbo kits and do everything we could to make them as fast as we could. All of my friends had their own cars, so we had this group that would work on each other's vehicles."With bigger plans and a drive to get there, Fitzgerald decided to go back to school to get a degree in collision repair."I went through UTI's one year program at their school in Houston, TX," he said. "It was intense with more than nine to 10 hours of instruction and lab work every day, but when I graduated from there, I was ready to get a job at a shop."Returning to the Louisville, KY, area where he grew up, Fitzgerald started working at a local shop to learn more about the trade."I worked as a prepper for four years and they never let me paint an entire car, mostly door jambs and things like that," he said. "It was a very competitive environment there, so all of the painters were fighting for work."Because Fitzgerald was cross-trained as both a painter and a metal technician, he decided to start working at another shop in Louisville as a body tech."I did that for two to three years, but it never really became full-time, so that's when I started bartending. It helped to pay the bills and it also allowed me to sock away some money, because I started thinking about possibly opening my own shop around that time."At first, he didn't have a permanent location and that's why people began calling it Phantom Autobody."I started by doing side work in the evenings and on the weekends," Fitzgerald said. "We would do it at the shop I was working at or anywhere we could. We really didn't have a real location, so I named it Phantom Autobody and it became an inside joke."After borrowing some money from his friends and selling three of his beloved cars, Fitzgerald got his facility and an address in 2013."I put together almost $25,000, with some savings from the bartending thrown in there too. We started on a very small scale first and now we have four employees and operate out of a 10,000 square foot facility. We do full collision repair, but we don't have any DRPs, so it is pretty much word of mouth."By knocking on doors and stressing excellence, Phantom Autobody has grown steadily."We do a lot of work for a local car dealership that closed their own collision center a few years back," Fitzgerald said. "Now that we have a permanent location, things are really picking up."At first, things were a little rocky, so the bartending became a way to keep the bills paid. "I was working at the shop all day long and then bartending at least three nights a week to make ends meet," he said. "I still work on the weekends as a bartender, because it's easy money. Occasionally, one of my customers at the bar will become a customer at the shop-either for collision repair or a car restoration or even some custom paint."Although Fitzgerald is a skilled painter and does a lot of motorcycle builds featuring his custom paint, he still feels like there is room to learn and grow."Some people say I am an artist, but I don't think of it that way. I just enjoy doing custom work and that's where my interests really lie. We fit it in, but we make sure that it does not interfere with the collision repair or overwhelm our production by doing it."Does Fitzgerald have a five-year plan for himself and his growing business?"We want to grow and fix more cars," he said. "There is a lot of competition in this area, with shops that have been around for 15 to 20 years. So, I am still the new kid on the block."Will he ever be able to step away from the bartending and be able to enjoy his weekends every once in a while?"I don't know, I like doing it and I'm good at it, so no--I will still be working at that bar mainly on the weekends until I decide it's enough. The bartending helped to get me here, so I'm not ready to retire just yet."

Do Vehicle Wraps Make Sense for Your Shop?

You've seen them everywhere and the graphics are pretty spectacular. Food trucks, large 16-wheelers, vans of all sizes and cars of every type now have advertising messages that entice viewers. Some people have allowed companies to put their logos on their daily drivers and paying them handsomely for doing so and this movement is growing fast.Body shops all over the country have invested in car wraps to push their brands and gain valuable exposure. They're like moving billboards, except you don't have to rent them once you've put them on your vehicles. So, the real cost is only the initial investment, but the big question is--do vehicle wraps pay for themselves over time and do they actually attract customers?It's all about ongoing branding and continually getting your name out there to the community. If you get vehicle wraps put on your delivery vans, will people see them and flock to your shop? Not likely, but the advertising message on your vans, in conjunction with your other marketing efforts, will eventually make your shop's name a household word. So, when someone gets into an accident, they will think of you instead of your competitor down the road.Interesting and fun vehicle wraps seem to garner the most attention. Collision Specialists in McAllen, TX, has a car wrap that features its logo breaking through a wall of concrete. Offutt Collision Repair in Bellevue, NE, has a wrap featuring a cute little green alien with a spaceship that’s damaged. “An Out of This World Body Shop” is the shop’s slogan emblazoned on the car. And in Bluffton, SC, the Carriage Shoppe has a wrap on a van that is a real attention-getter, because from a distance the vehicle looks badly damaged. But, when you get a little closer, you can see that it’s just a very deceptive (and creative) wrap.Simple, understated vehicle wraps are ideal for businesses that want to spread the word without them being too elaborate.Creative Colors Studio in Burnsville, MN, has been creating award-winning vehicle wraps that drive business since 1998, according to the company's founder Jeff Volino. "We sit down with every client and create the image that they want," he said. "The graphics and the message have to go hand-in-hand or they won't work. We want to tell a story, instead of just sticking your logo on the side of a van."After the staff at Creative Colors Studio comes up with a design everyone is happy with and a price they can all afford, the installation process is fast and drama-free, Volino said. "Without damage to the car, we simply adhere the wrap to the vehicle quickly. We can even safely cover the glass and windows, allowing individuals inside the vehicle to see out while those outside are shown your logo or company's message. Vehicle wraps can pretty much meet any budget and we've gotten very good at doing effective partial vehicle wraps to cut down the cost."The King of Wraps in San Jose, CA is well-known for its high impact advertising car wraps. Owner Magno Lopez started creating and installing wraps for a wide range of Silicon Valley companies 13 years ago."Our motto is maximum impact with tremendous results," Lopez said. "A full wrap commands attention and turns your vehicle into a powerful moving billboard. It doesn’t matter what angle it is viewed from, because peoples' eyes will always be drawn to it."Some wraps include window wraps, like with this one for Auto Body World in Erie, PA.If you're intrigued by the idea of putting vehicle advertising wraps on your delivery fleet or your companies cars, consider the pros and cons first. For $500-$5,000 a car wrap can be as simple and direct or as intricate and involved as you desire, but make sure it's within your budget and keep your expectations realistic. If you think the wrap will have the phone ringing off the hook within a few weeks, think twice.With any sign or message on your vehicles, there also comes a level of transparency and accountability. Since wraps are a moving advertisement for your business, a bad driver can bring you unwanted attention. And if one of your vehicles possibly gets into an accident--get ready for some more adverse feedback.The positive aspects of using car wraps for your marketing and advertising are numerous. A vehicle wrap is a far more effective tool than a basic magnetic sign. In fact, most magnetic signs look cheap, to be honest. In addition, a wrap can convert any vehicle into a billboard. You wouldn’t be allowed to put a sign in front of a restaurant or a store, but if you’re stopped in their parking lot you don’t need a permit or permission to wave your company’s flag.And finally, wraps are removable, so if you change your name for whatever reason, you won't have to get the vehicle re-painted. Wraps offer flexibility and some shops will change them every 2-3 years, in order to stay fresh while conveying a new message. You can design a wrap to target a specific demographic---such as women, Millennials, senior drivers and even young drivers.Some shops use their wraps to convey a safety or community-related message. One shop used their vehicle wraps to communicate anti-texting and other distracted driving warnings to the public and another shop promoted the local schools and Little Leagues through their wraps.But, the bottom line is this---do vehicle wraps ever lead to new customers? The answer from Offutt Collision Repair is an emphatic maybe."I don't think anyone has ever come in here and said that a car wrap brought them here," Carissa Williams explained. "They all work together in a marketing and branding plan, so to track the results is a little difficult to do. But, it's all about getting the shop's name out there and for that purpose they do a very good job."

Collision Repair Association Conducting Study of Blend Time Formula

The Society of Collision Repair Specialists (SCRS) has provided a few more details about its study beginning in August into the accuracy of the blend time formula commonly used in the industry.Speaking at the association’s open board meeting in late July in Pittsburgh, Executive Director Aaron Schulenburg noted the three estimating system providers each establish its own refinish labor allowance for any given panel.“The refinish time for a fender in Audatex will look different than the refinish time for that fender in CCC, which will look different from the refinish time in Mitchell,” Schulenburg said. “Which is fine, they’ve each done their own research on it. All three companies identify 50% as a blend value; despite the fact that they don’t have the same refinish values, all identify blend time as 50%."Our members have long challenged that," Schulenburg said. "We don’t believe 50% is reflective of what we’re actually doing, because there are a lot of tasks associated with [blending] outside of just the application of the base coat, which, for a large part, is the task that is being adjusted.”Schulenburg said given the lack of “positive movement” SCRS has seen on the issue based on its long-standing discussion with the estimating system providers, the association is working with the five primary refinish companies on a study taking place at Global Finishing Solutions’ Center of Excellence facility in Wisconsin.“We will actually be using a systematic approach where we do complete refinish on doors, fenders and hoods, and then blend on doors, fenders and hoods, to evaluate the delta between the full refinish task and the blend tasks,” Schulenburg said. “We’re not doing a refinish time study. Our goal is not to establish a refinish time on those panels. We will just be evaluating what percentage of the full refinish value blend represents.”He said the study will use panels for a high-volume Ford truck, waterborne products used in all U.S. markets, and color codes that represent a solid, a metallic and a tri-coat.“This has been an issue for a long time,” Schulenburg said. “We hope to put a punctuation mark on this one.”

Gerber Collision CEO Talks Parts, Personnel Challenges

Tim O’Day, president and CEO of Boyd Group Services, parent company of Gerber Collision & Glass, referred to his company as “one of the better users of alternative parts” in a presentation this spring at the Automotive Body Parts Association annual convention.“But right now, we’re more reliant on OEM parts than we’ve ever been, which is unfortunate,” O’Day told the non-OEM parts manufacturers and distributors at the event. “It negatively impacts our profitability, and it drives repair costs up for our customers. So hopefully the aftermarket will figure out how to balance out supply so that we can buy the parts from you that we want to buy.”O’Day acknowledged that currently even OEM parts are often unavailable, and he doesn’t foresee a quick end to supply chain issues.“Last year, we probably thought maybe the beginning of the second quarter of this year, but I haven’t seen it,” he said. “I’ve heard temporary positive signs, but nothing that’s systematic that’s going to drive the change we need. So I think we’re probably in for a couple of years of challenging times.”When asked to compare supplier service levels, O’Day said “problems with parts that come in incorrectly is much, much lower with OEM than it is with the aftermarket.“I think if you talk to a parts manager or estimator at one of our stores, if price and margin were equal, they would buy the OE part because it tends to be reliable a high percentage of the time,” O’Day said. But he noted the gross profit margin on non-OEM parts is better, so “our staff is motivated both in terms of how we get measured by our insurance partners, and in how it drives our profitability, to identify and source higher-margin, lower-cost alternative parts.”O’Day said the company is working toward centralized parts ordering for its more than 800 shops in North America.“When we leave the buying decision at a local level, there’s sometimes influences that aren’t consistent with what our objectives are,” O’Day said. “It could be something as simple in the old days as ‘I got tickets to the ballgame tonight, so I’m going to buy parts from this supplier,’ to something worse than that, that may not be good for our business. The direction we’re moving is to establish contractual relationships in writing with a supplier.”Part of that agreement will be all electronic parts ordering.“We’re going to get to the point where if you do business with us, and one of our stores calls you and says, ‘Deliver me this part, I need it this afternoon,’ if you don’t get the order electronically, I don’t want you to deliver it,” O’Day said. “Because what’s going to happen is you’re going to deliver the part. I’m going to put it on the car, and I’m never going to charge my customer for it. And 60 days from now, you’re going to come back to me and say, 'You owe me for that part, because you didn’t get it in your payables system and you haven’t paid for it yet.’"So it’s a huge loss for me when we do that. So we want to do business with suppliers that are connected electronically,” with ordering, invoicing and payment all handled electronically.O’Day also discussed the technician shortage impacting all collision repair businesses. He serves on the Board of Directors for I-CAR, and said the segment of the industry renewing its I-CAR Gold Class designation in 2019 averaged 9.5 technicians per shop.“In the most recent round of renewals, the average shop has 7.5 technicians,” O’Day said. “So about a 17 or 18% reduction in workforce. It’s just a highly disruptive environment. And there’s really no short-term solution."My view, and most of the repairers I’ve spoken to share it, is the only way we’re going to build our workforce is by paying more money to that workforce, pulling them from other industries," O'Day said. "The only way we can do that is through pricing. It’s going to cause increased premiums for vehicle owners. But otherwise we’re not going to solve our customers' problem and get their cars repaired on a timely basis.”He said the industry lacks “a formal, universal way” to work with students coming out of collision repair training programs to build their skills.“They come into our industry, and because we don’t train them properly to move them to the next level, we lose them to other industries,” he said.To that end, he said, Gerber created an 18-month technician apprenticeship program for students coming out of school or for internal candidates working as a porter or car-washer.“We spend tens of thousands of dollars per trainee, but they come out with pretty good skills after 18 months,” O’Day said. “We’ve made a commitment to more than double the size of that program this year. But I think in the long run, we can’t do it alone. We really need the majority of collision repair shops to make the same type of commitment, and do it in an organized way so these students grow and are successful in our industry.”Another “area of opportunity” he said Gerber is “pursuing pretty aggressively” is improving the “diversity of our industry,” working to attract more women, Black or Asian Americans and other minority groups.“We’re doing a lot to create an inclusive environment that will allow us to successfully recruit people who don’t look like me, and build our workforce with greater diversity,” O’Day said. “Because if we go after the same group that we’ve always been targeting, we’re never going to solve the problem, and we’re not going to be as good of a company. So we have a very strong commitment to improving diversity.”

Company Says it Has Recent Auto Body Shop Estimate Data for Sale

The ongoing discussion about auto body shop data privacy at the quarterly Collision Industry Conference (CIC) meetings took a new turn this summer when an association leader described what a data aggregator company had recently offered to sell to his organization.Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), said the company contacted him, after speaking with one of SCRS’s state affiliate groups, to see if SCRS might be interested in acquiring data it has on recently-written collision repair quotes.The company, which Schulenburg did not identify by name, told him the information could be used by SCRS member shops to contact consumers who received a recent estimate to say, “Hey, I know you’ve gotten a recent quote, and our business could do the work for you.”Schulenburg asked what type of information was available. The company told him, “through our data aggregation partners and processes, we collect 86% of all quoted collision repairs in North America, whether the quote is taken through a body shop or any insurance carrier.” Even if that quote doesn’t reach an insurer, Schulenburg said he was told, “that data goes into our system within 24 hours.”The 40-plus data fields the company said it has include on a daily basis more than 62,000 VINs and 135,000 quotes---written by shops or insurers. It includes customer name and contact information---address, phone and email---where the collision occurred and where the repair quote was generated. It includes nearly $72 million of quoted parts per day, and the year, make, model and mileage of vehicles along with body, trim and engine descriptions.The revelation was of interest to a CIC committee that, like SCRS and other organizations, has been looking into how shop estimate information sometimes ends up as entries on vehicle history reports. Schulenburg said the company offering to sell the data was not one he, nor anyone else he has talked to about it, has heard of.“The point here is not that they have this data, but it’s where they are getting it from,” Schulenburg said.The founder of the company, who Schulenburg said he spoke to after the initial call, said a non-disclosure agreement prevented him from revealing the source of the data; he told Schulenburg he couldn’t say more because “if I answer too many questions, you’ll figure it out.” He said it was a company Schulenburg would know because their primary business model “has something to do in collision,” and that licensing the data to be sold is “just a side stream of revenue.”He confirmed it was not coming from public registries, DMVs or police reports, Schulenburg said.“It is coming from a data aggregator, who is selling it,” Schulenburg said. “There’s a lot of good companies out there that are utilizing data to do the right thing for this industry. And there’s at least one company who is not doing the right thing. There’s at least one company that is turning it into a separate revenue stream to take the information you shared with them for one intended purpose, and selling it to someone else to sell for an entirely different purpose that you didn’t intend.”The leaders of the CIC committee, knowing Schulenburg’s long-standing work on data privacy issues, noted the irony that a data aggregator selling such information would contact him.“It was a complete shock to us that something like that would fall into Aaron’s lap,” said Dan Risley of CCC Intelligent Solutions, co-chair of the committee. “I’m glad that it did, though, because I think more discussions will be had.”Risley said it may be a good reminder that vehicle history reporting companies such as CARFAX “shouldn’t be viewed as ‘public enemy No. 1.’”During the committee’s panel discussion following Schulenburg’s presentation, Connecticut attorney Steven Bloch said while issues related to shop estimates resulting in entries on vehicle history reports is troubling, the detailed estimate information being offered for sale poses even greater risks.“What’s of great concern is that a VIN, certainly in combination with personal identifiable information such as Aaron was ticking off---the [customer] name, address, insurance company, plate number---all combines to potentially run afoul of various state and federal [data privacy] legislation, which is only getting stricter, with more scrutiny being paid to everybody in the supply chain,” Bloch said.Panelist Pete Tagliapietra of DataTouch, LLC, agreed.“The information going to the vehicle history companies is the ice above the waterline,” he said. “What’s below the waterline? For you shop owners out there, what’s below the waterline is all of your DRP relationship information: who you have DRP relationships with. What your negotiated labor rate is. Who you buy parts from. What discounts you offer. Anything that can be gleaned off that estimate is being taken, compiled and aggregated, and being used for other purposes.”Though some believe estimate data finds its way to CARFAX or vehicle history reports after the VIN and other information is sent to “live” parts locating services during the estimating process, Tagliapietra blamed thousands of “data pumps” running on shop computer systems, scraping estimate data sometimes without a shop’s knowledge or consent.Virginia shop owner Barry Dorn asked the panel how a shop can know a company that says it is only pulling limited estimate data needed for a specific purpose---like parts locating or customer satisfaction indexing---is actually doing only just that.“You can’t. Not yet. But you will,” said Tagliapietra, whose company is developing a service to root out data pumps on shops’ computers systems.Panelist Tom Allen of Condition Now said he understands body shops’ frustration with their estimate data resulting in an entry on a given vehicle’s CARFAX or other history report.“The shop becomes the face of this incident,” Allen said. “The officer directing traffic [at the accident scene] may come and go. The insurance company may be just a voice on the other end of the line, or the other side of the app. But the first human we see in this instance is the shop. I believe they get the brunt of things, right or wrong.”Allen said his company for about a decade has offered a way for body shops “to control the negative,” a way to use a vehicle history report to “show the good, not the bad,” by playing up the use of OEM parts in the repair of the vehicle, for example.“Our goal is to actually document that stuff in a way that is helpful to Mrs. Jones, the customer,” Allen said. “To show, not only did we fix your car properly, it was done with OEM certified repair procedures.”

How to Sell Your Automotive Distribution Business---An Insider’s Perspective

I left my first stint in investment banking for the less glamorous world of automotive equipment distribution.Going from suits and boardrooms to jeans and paint booth pits was quite a transition, but it helped me realize what more and more people are finding out: the path to wealth is often found in owning a blue collar, service-oriented business, and then eventually selling that business. But if you’re reading this, there’s a good chance you already know that.In my case, the catalyst to leave investment banking was to join my family’s 30-year-old automotive equipment company following a strategic buyer’s interest in purchasing the business. I loved the idea of working with my family, and it was a truly great experience.At the time, I felt my banking experience would be helpful in the sales process and I would like to experience it firsthand, which is also how I got back into banking. But until that initial acquisition interest, my family had not fully realized how valuable our company would appear to outside buyers.In fact, it was such a niche business that selling had never become a serious discussion. After all, who would buy a business in an industry that 99% of the country has never thought about? Spoiler alert: There was a ton of interest from all sorts of potential buyers.Distribution is sometimes overlooked as the key cog it is in the automotive aftermarket ecosystem.Whether you sell coatings and parts, paint booths and frame machines, or alignment equipment and compressors, you’re vital to the success of your customers. They rely on you to help them make money, plain and simple. Now, with massive levels of consolidation among your customers---be they collision repair centers, tire stores or car dealerships---you’re at a bit of a crossroads yourself. As your customers get bigger and more sophisticated, they expect you to do the same---or exit the industry.This “grow or go” conundrum is leading to significant M&A activity among the distribution companies that service those customers. Consolidation is underway, and valuations are high.In short, despite all the challenges you face in the business world right now, it’s a good time to be an owner---and potential seller---of a distribution company in the automotive space.So, if you’re open to selling your distribution business but not sure where to start, here are some things to think about from someone who’s been involved as both a seller and a banker.The first order of business is to make sure your organization is ready for a transaction. Here are some steps to do just that:Consult an investment bank or M&A advisor:Find the right team to market your business and have your back throughout the M&A process. Your investment bank is an extension of you and your company in the marketplace, so make sure you are well represented.Look for investment banks that specialize in your space and market. It certainly helps when they’re familiar with your industry, its valuation trends and its buyers. Some key things my family and I considered when selecting our investment bank included industry experience and expertise, a high-quality team, FINRA licensing and a good cultural fit.The right investment bank will help you focus on the right metrics to get you where you want to go, even if you’re not there yet. They will also help guide you through some of the less obvious potential pitfalls that come with selling a distribution business, such as informing your suppliers beforehand and working with them to ensure a smooth transition.That’s what my family did, and it ended up opening a whole new world of potential buyers, allowing us to maximize the business’s value and find the right partners for long-term growth and success.Get your finances in order:One of the biggest factors hampering transactions from taking place is less-than-stellar financial records. If that sounds familiar, don’t fret!When we sold our family business, we recognized our financials were lacking in sophistication and brought in an ace CPA firm to help. It made a significant impact and changed the entire selling process for the better. In our case, we were introduced to our accounting firm by our investment bank. If you don’t have an accountant, ask your investment banker to refer you to one.Stay focused on growth:When a sale is looming, it is easy for owners to focus on that sale as much or more than the daily operations of the business itself. This is a major trap. Keep pushing the growth!Doing this will ensure you get the best valuation possible and avoid any cold feet from buyers at the finish line. Stability within the business throughout the M&A process is key. Rely on your investment bank to handle the sales process while you concentrate on running your business.Map out the future:Some owners want to be done with their business entirely and ride off into the sunset that is retirement. And that’s perfectly OK. Others don’t want to get out entirely, but they’d like to take some money off the table and find the right partners to fuel growth within the business.Both cases attract two entirely different types of buyers. Based on what you want your business to look like after the sale, your investment bank or M&A advisor will help you find the right partner. In our case, we wanted to keep some skin in the game and play a major role in the company’s future growth.Selling your distribution business is an exciting proposition, but there are many moving parts and roadblocks that can make the process daunting. You’ve dedicated blood, sweat, tears and---perhaps most importantly---a lot of time to your business. Nailing the transaction to ensure all that hard work is rewarded properly is paramount. After all, you don’t want to fumble at the goal line following a beautiful 99-yard return, right?Selling your business can often be a once-in-a-lifetime opportunity, so when that opportunity comes, make sure it’s executed properly. Find yourself the right partners and maximize your valuation. You’ve worked hard to get here, now finish strong!Cole Strandberg is a principal with FOCUS Investment Banking, specializing in automotive aftermarket mergers and acquisitions. Cole works closely with automotive equipment providers, paint jobbers and collision centers. For more information, contact him at cole.strandberg@focusbankers.com or (561) 400-1015.

Build Your Collision Repair Business with a Buyer in Mind

Most entrepreneurs start a business based on one or two of many potential reasons---it could be to exploit a unique skillset or access to talent, pursue a passion or simply meet a need otherwise not being met in the marketplace.Most times, though, new entrepreneurs start businesses with the beginning in mind, but not the end, building a business that meets their immediate personal needs without giving much thought to the long term. As a result, many business owners fall into the trap of limiting their business’s growth, and subsequent options for the long term, based on short-term-minded decisions.By contrast, many of the most successful people in the collision repair space have started their businesses with one goal in mind: to sell it. How can you build your business by thinking like a seller?First, let’s discuss what buyers are looking for, and work our way backward.What do buyers want?Footprint and layout:As you might expect, the more space you have, the better. While each potential consolidator’s footprint desires vary, a safe sweet spot is 10,000 square feet of shop space or larger, though not a hard and fast requirement. Additionally, parking and storage is equally important.If you fall short of that square footage, don’t fret. Maximize the space you have. Maximizing shop space via a well-thought-out equipment layout and shop flow allows for more revenue per square foot. If you’re just building a new location, or considering upfitting an existing location, reach out to one of the quality paint booth manufacturers, most of whom will offer a no-charge design consultation.Revenue:You want to maximize your space because consolidators care about revenue, plain and simple. While most businesses I work with are valued based on a multiple of adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, the collision repair industry places significant importance on revenue as well. This is because, for the most part, if a consolidator can generate a certain amount of revenue within a footprint, they believe they can make that revenue profitable.Again, while there is no hard and fast rule on revenue requirements for consolidators, $2 million in annual revenue seems to be an entry point, with $5 million being a common sweet spot. Anything over that, and you should have some compelling regional and national interest when you eventually go to market.It's important to note purchase price as a percentage of revenue typically goes up as revenue goes up, just as EBITDA multiples increase when EBITDA increases. Obviously, becoming a small multi-shop owner with two, three or more shops can help that revenue scale more quickly, and make you even more desirable to a potential acquirer. Valuation multiples vary significantly based on a multitude of factors, so if you’d like to discuss situation-specific valuations, feel free to reach out to me directly.Community and relationships:While there is no quantifiable value placed on your shop being a pillar within its community, it certainly doesn’t hurt. Many consolidators are very charitable, so a culture of giving in your shop will make it more attractive. Not to mention, local relationships with the customer base, direct repair programs (DRPs) and dealers will only serve to add value to your business. It never hurts to do good things within your community.Talent:As you likely know firsthand, there’s a theme in the collision industry as it relates to constant challenges: talent---much less good talent---is hard to come by. This is evidenced by some of the largest consolidators in the country investing millions in training programs, incentivizing---aggressively, I might add---experienced technicians to train apprentices, and more.This industry puts a premium on talent. Therefore, if you have a lot of talent within your organization, it will help your business get a premium valuation. Validate this by having I-CAR certifications, both at the shop and technician level, as well as original equipment manufacturer (OEM) certifications.So how do you build like a seller?In terms of working your way backward, determine what you want your eventual exit value to be. Once that’s determined, you’ll know what you must do in order to get there. The focus, ultimately, is on scalability and avoiding roadblocks to achieving that scale, such as limited space and poor shop flow.While you might not be a seller today, tomorrow or even five years from now, everyone is in business to make money. Modeling your business after some of the best operations in the industry is a good thing. Chances are, building your business by regularly taking a step back and looking at it through the lens of a potential buyer will pay off in both the short and long term.Cole Strandberg is a principal with FOCUS Investment Banking, specializing in automotive aftermarket mergers and acquisitions. Cole works closely with automotive equipment providers, paint jobbers and collision centers. For more information, contact him at cole.strandberg@focusbankers.com or (561) 400-1015.

How is Your Auto Body Shop Dealing with the Great Resignation?

You thought we would be done with the pandemic by now, but like Al Pacino's character, Michael Corleone, said in The Godfather II, “Just when I thought I was out, they drag me back in!”Will the effects of the pandemic always be a part of our lives? It sure looks like it.There are still many questions we never had to deal with before, and many things we thought would be in our rearview mirrors by now. Are you prepared for the post-COVID work environment? Are you ready for a majority hybrid-remote office model? Are other shops trying to hire away some of your top people? Will some of your upper management take this opportunity to retire? Is it time to sell?These are life-changing decisions and the time to make them is here.We’re now entering the post-pandemic world and many of your employees have different opinions. While some of your crew is enthusiastically returning to work, others are reluctant and have concerns about hours, safety and other issues.Regardless of whatever your employees think will happen next, body shop owners and managers are just happy to return to some level of normalcy after these 30 months. But, are things really back to normal---and what is normal now, anyway?In many parts of the country, the shortage of qualified people got even worse during the pandemic. An MSO owner told me recently he could put 80 collision professionals to work immediately, if they existed. I would bet any shop out there right now could use a few more qualified people, as car counts rise and customers who were reluctant to bring their vehicles for repairs start showing up at their doors.Poaching employees is a problem, especially in states like California and New York, and it will undoubtedly get worse within the next year or so, I believe. So, with motivating your crew and strengthening them more important than ever, here are some methods to help you retain your best employees.The pandemic caused body shop owners and managers to centralize decision-making to be more efficient, pulling it into the leadership team without feedback from key stakeholders, like top technicians or the head painter. This was essential during the pandemic, but this will need to change to ensure long-term effectiveness and continued employee engagement.One of the smartest ways to do this is to start inviting employees outside the leadership team and closer to the rest of the crew to participate in the decision-making process.Some body shop owners said communication improved tremendously during the pandemic because it became mandatory. “People were no longer in the same room, so imparting communication changed," one owner said. "We became a Zoom culture, and in many cases, we became more comfortable with it and adapted.”The pandemic created a virtual world, but unfortunately it won’t have much of an impact down the road in collision repair, because you can't fix cars via Zoom.It means some employees who were sitting home for more than a year are going to undergo major changes, like commuting and spending less time with their families. Some people won’t adapt well and it may take a month or two to re-engage, so patience but accountability should play a role.During the pandemic, many shop owners and managers decided to push employee communication to the sidelines. The idea was they should not focus on engagement, saying “We can’t ask our managers, techs, estimators and painters to do one more thing!” Stressed out employees were on their own and forced to navigate it all solo. Some quit and many were laid off, and even a few took early retirement or sold their shops to an MSO.So now is the ideal time to reconnect with your top talent if you want to retain them. Post-COVID, your disengaged employees will start looking for a better deal elsewhere. Will the return to normal tempt your best people to pursue other options?The best thing to do is to step up employee engagement and keep everyone in the fold. Turnover can seriously impede a body shop, and poaching can spread quickly. Joe Technician is happy at his new shop and the word is out they’re looking for more people, so a strong bond with your employees is more important now than ever.Focus on retaining your female employees, because they are the most likely to switch or quit altogether. According to NPR, 865,000 women left the U.S. workforce---four times more than men---in just September last year.“The coronavirus pandemic is wreaking havoc on households, and women are bearing the brunt of it,” the NPR study said. “Not only have they lost the most jobs from the beginning of the pandemic, but they are exhausted from the demands of childcare and housework---and many are now seeing no path ahead but to quit working.Keep Millennials in your discussions. They’re focused on things such as diversity and inclusion, so keep them in the loop. The worst thing is to have them feeling like they’re not being heard. Let them play a role and watch them excel as people and leaders. To accommodate your younger crew members, keep your meetings short and sweet and create mechanisms to enable them to contribute.It's a whole new game out there and those shops that can adapt will succeed, while others might encounter a never-ending carousel of new and returning employees.The pandemic changed the rules, but many principles of employee communication are still the same. Try to keep stress levels low, keep your eyes open for changes within your team and proceed carefully, and you will be able to retain your people and avoid the pitfalls of the Great Resignation.

Forward-Thinking Program Creating Great Auto Body Techs of the Future

In the summer of 2019, Southeastern Community College (SCC) in West Burlington, IA, hired Dr. Ashlee Spannagel as its new dean of career and technical education (CTE) and workforce development.Spannagel entered the job excited and ready to take on the world---and then the pandemic hit. It’s been a “work around” project ever since, but she hasn’t been dissuaded one iota, taking the position and making it her own as the school’s collision repair department benefits in many ways.Spannagel came to SCC after working in education for nine years. One of the first things she did was to build relationships with established area educators, industry leaders and workforce and economic development partners to continue building opportunities for students. This included local body shops, car dealerships, vendors and companies that manufacture collision repair-related products, tools and equipment.Spannagel stays busy as she oversees the school’s entire CTE division and works closely with faculty and area employers to ensure SCC provides top-notch, industry-level education to its students. Her role within SCC’s auto and collision repair programs is only one small part of everything she does at this forward-thinking institution.While other CTE programs in the country have stepped back during the pandemic, you have stepped up in many ways for your collision repair department. Can you tell us about that?We receive an annual allocation of funding that is called ACE (Accelerated Career Education) funding. The whole purpose of that money is to reinvest in infrastructure, so that we can provide more classes and accommodate more students. One of the things that we chose to do with the money was to remodel our auto collision facilities, and it has worked out very well. We are confident that this will lead to more enrollment down the road, which is obviously the goal. It shows that we are open and committed to collision repair and ready to pivot if needed.It’s a huge job and a big school, so how are you able to do it all?Yes, I am responsible for 47 certificate, diploma and degree programs, and collision is just one them. I've been involved in technical education and post-secondary education 13 years now. The technology in the collision repair industry changes so rapidly that we can't possibly keep up with the changes that are occurring. We need to do our best to keep pace with what's going on, and then bring in other learning opportunities to help students to be up to date.We have been working very hard to align with industry-recognized credentials and what our local shops need in our graduates, so we rewrote the curriculum and pursued ASE accreditation to match the newly remodeled shop. We've rewritten the curriculum to where we're actually going to be aligned with I-CAR more, so that our students now will graduate from the program with far more credentials than they would have been qualified to earn previously.How can you stay current in an industry that is changing at a rapid rate?I personally think our collision instructors are excited that the students are highly interested about technology. Our students have grown up with technology. They are technology natives. So anytime we can include those high-tech pieces---either tools, equipment or concepts that the students are likely to engage with---that is ideal. We want to enable the body technician of tomorrow to be adept at using technology and that’s one of our main goals here at SCC.How do you find, hire and maybe most importantly retain good instructors?My biggest concern now is that we have a lot of staff on my team who are eligible for retirement in the next five years. There is a lot of talent, knowledge and experience that is highly skilled and invaluable to our programs. So, in the next five years, we'll have to figure out how to replace it. I think the way that we've handled the pandemic and our instructional continuity has really helped us retain our staff. But now I'm growing concerned about the fact that they'll be retiring here shortly.How has establishing mutually beneficial partnerships with local shops and vendors helped your collision repair department?Within the past 18 months, we have been been working on bolstering the relationships we have with our local body shops. We have a lot of body shops in our service area that are actually owned and operated by former students of the program. We also have a couple dealership repair centers in our area, and we have been able to partner with them as well.I realized we had an opportunity to strengthen our program when six local businesses approached me questioning the skills they were seeing in our students who had entered the workforce. So, I personally built relationships with these companies, and their managers have partnered with us in the work we have done to strengthen our program.We have worked to bolster our relationships with local body shops. The shops have been very receptive, very helpful and very engaged. We also work with vendors like PPG that come and do special paint classes for our students. This is just one great example of the learning opportunities we provide our students.In addition, we did just receive ASE accreditation that we have been working on for the past 18 months.

DataTouch Offering New Service to Help Collision Repair Shops Manage Access to its Data

Pete Tagliapietra is sympathetic to collision repairers whose customers have found accident information about their car on a vehicle history report.But Tagliapietra said that’s only a small subset of what he sees as a much larger concern of shop estimate data being obtained, used and sold by unauthorized third parties.“It’s my belief that most shops are oblivious to how much estimate information is being scraped off their computers, giving third parties a wealth of knowledge about how that shop does business,” said Tagliapietra, founder of the newly-launched DataTouch, LLC. “Even just a small set of a shop’s estimates tells someone whether or not the shop has DRPs, and if so, which ones. It tells them the labor rates the shop has negotiated with different insurance companies. It shows who the shop is buying parts from, and at what price. It also shows what kind of cars the shop repairs, and what cars the customers in that geographic area buy and drive.”All that, Tagliapietra said, is even aside from the customer’s personal identification information on the estimate, which a growing number of states have mandated businesses take adequate steps to protect.“If I owned a body shop, I wouldn’t want third parties to know all of this---how I run my business and with whom---and to be able to use it or sell it without my authorization, and clearly even in ways that are not in my best interest,” he said.Tagliapietra said it’s his belief “the CARFAX issue”---estimates resulting in entries on a vehicle’s history report---and all the other third-party use of shop information are the result of thousands of “data pumps” running on shop computer systems across the industry.“Data pumps have become prolific,” Tagliapietra said earlier this year. “It’s gotten out of hand, from my point of view, because the data has become so valuable. Most shops probably have an unauthorized data pump, or more likely multiple data pumps, that are sucking the repair line information and personally identifiable information off of every estimate they write.”A shop may have authorized the installation of some or all of the data pumps running on its computer system, because they can help automate some shop processes, such as sourcing alternative parts, subletting repairs or materials. In other cases, the shop may not be aware of a third-party vendor installing a data pump, or that a data pump installed by a company the shop is no longer doing business with continues to scrape estimate data from the shop’s computers.“But the data pumps themselves are only the first part of the problem,” Tagliapietra said. “The real issue is that shops can’t control what portions of an estimate get scraped by those data pumps. A parts vendor doesn’t need your labor rate information or the customer or insurer name nor even the entire VIN, yet they get all that. A CSI provider doesn’t need anything other than the basic customer contact information, yet they get all the estimate line items and subtotals. A remote scanning company doesn’t need anything other than the complete VIN to identify the specific vehicle and the ADAS functions on that vehicle."Too much of a shop’s information is going to too many third parties---often without the shop’s knowledge or consent---and that information has significant value to those companies that can get it.”Tagliapietra founded NuGen IT and sold that company to OEConnection in 2020. He is launching DataTouch this summer as a potential solution for a shop that wants to get a better handle on who has access to its data. For a one-time fee, DataTouch can audit a shop’s computer system to identify what data pumps are operating on it.“They’re often hidden well enough that unless someone knows what they’re looking for, they’re not going to find them,” Tagliapietra said.The shop then has the option to subscribe to the DataTouch monthly service, which enables the shop to administer by trading partner which portions of estimate data go to each third party. A recycler, for example, may only receive a parts list and the year, make and model of the vehicle, and the first 11 digits of the VIN.“That’s enough information to run it through a parts exchange and supply the part,” Tagliapietra said. “When a shop picks up a phone and says, 'I need a left front fender for a 2004 Chevy Tahoe,' the recycler doesn’t say, ‘Give me the VIN.’ So why when ordering electronically does the shop send them the entire estimate and all of that information?”DataTouch also will assist a shop in deleting data pumps that are obsolete or not approved by the shop.Tagliapietra said he believes DataTouch will put collision repairers back into better control of their estimate and business information, and better able to protect their customers' privacy as well.“We can help shop eliminate the possibility of trading partners sharing repair information to unauthorized entities, such as vehicle history reporting companies and so much more,” he said.

What Your Auto Body Shop Needs to Know to Be Ready to Repair EVs

The Alliance for Automotive Innovation reported in June almost 200,000 electric vehicles were sold in the first quarter of this year---a 4.2% increase over the previous quarter---representing 5.9% of overall light-duty vehicle sales. Is your shop gearing up to repair them?Repairers, trainers, automakers and others participated in a recent panel discussion at the Collision Industry Conference (CIC) about what EVs will mean for auto body shops. Here are some of the highlights from that discussion.Consider Your Lifts“The normal two-post lift is not going to be the future, in my opinion,” said Virginia shop owner Barry Dorn, whose company is certified to repair a number of automaker’s EVs. His reasoning: Shops will need a lift that can be used when an EV’s main battery pack need to be removed.“When you consider the width of the battery you are going to take out, at least for the Audi brand, the batteries are the size of a queen-size mattress and weigh close to 2,000 pounds,” said Mark Allen of Audi of America. “So you’re going to need a lift that has at least 67 inches between the posts. Not the arms, the posts. And then a flat floor underneath so you can get a lift table underneath.” Expect to Need a Power UpgradeMany shops in the past have had to upgrade the electrical service to their building in order to accommodate the power needs of some welding equipment. Putting in one or more EV charger stations will likely require yet another upgrade.“The answer they are mostly getting [when shops inquire about any necessary electrical upgrades] is: You only have just enough power coming into the building to run the things you have there right now,” said Bob Augustine, co-chair of CIC’s Emerging Technology Committee hosting the panel discussion.Other Possible Changes to Processes and Facility“It’s a lot of Go-Jaks,” Dorn said of the dollies needed to move EVs around the shop once they have been powered down for repairs. “We had to reconfigure the drains in the floor because they get caught up on that. We had to reconfigure our paint booth because you’re pushing a dead vehicle. There are literally times we have to have a tow truck pull an EV into the booth.”Shops also need to know what EV repairs require powering down the vehicle. Even something as seemingly minor as paintless dent repair (PDR) may require de-energizing the vehicle, Dorn said.“Depending on the vehicle, there are some areas that are literally right beside a fender or right under the hood that are very close to areas you don’t want to be,” Dorn said of PDR.Trying to Save Money Could Cost YouJason Norman of Enterprise Rent-A-Car said he’s seen instances of people thinking they can reduce the cost of charging cables or adapters by getting one available online at a quarter of the cost of the OEM part.“It’s very tempting, and it turns out they look very similar,” Norman said. “But the reality is this is one of those times when the OEM equipment and procedures are critically important. A lot of those [cheaper] adapters and cables don’t have the embedded technology to do things like measure heat and current. So you end up with significant problems.”The panel shared a photo of the charred remains of electrical connectors inside a charging system installed some years ago by a California shop. The heat involved in EV charging also can lead to expansion and contraction, which can loosen connections over time.“There is a certain amount of maintenance you’re looking at on these chargers,” said Oregon shop owner Ron Reichen. “You have to go in and retighten things from time to time.”Darrell Amberson said his multi-shop collision repair company in Minnesota repairs a lot of EVs, and it’s not something shops should avoid.“It’s no big deal. We’re still fixing cars,” Amberson said. “But on the other hand, it does require a difference from the start to the finish of the process. And every person in the organization has to have some different understanding, especially in terms of safety.”

3 Collision Repair Business Leaders Find Ways to Develop Positive Company Culture

Three auto body shop owners spoke during the recent Society of Collision Repair Specialists’ Repairer Roundtable about their efforts to build a positive culture within their companies.Bruce Halcro of Capital Collision Center in Helena, MT, said a change in pay plans was one step he took a few years ago.“We were paying flat rate, and it created more divisiveness than anything,” Halcro said. “Everyone was doing their own thing and saying, ‘That’s not my job.’ So we switched everybody to hourly, working out a pay plan that got them as close as we could to the flat rate that they had.”Halcro said he tries to get out to each technician’s work area every day to talk with them briefly.“Sometimes it’s about the car they’re working on, but most of the time it’s about family,” he said. “I think that’s an important connection to have with employees. I think how you treat employees, showing them that you value them, really builds a culture.”One thing Halcro said has surprised him was the impact on his company’s culture he’s seen from its sponsorship this past year of a youth hockey team.“So we had our own section, a ‘Capital Collision section,’ at the games,” he said. “We actually hired a couple of the players to come in a couple hours a day, twice a week, to clean the shop, empty garbage. By the end of the year, almost our whole crew was going to these hockey games. By Wednesday, they all would be talking about who was going to the hockey game that Friday night. Honestly, that was one of the best team-building things that we’ve done, that’s been impactful for our youngest employees to some of our older ones.”Ron Reichen, owner of Precision Body & Paint, which is opening its fifth location in Oregon this year, said part of developing his company’s culture involves having second-year students from a local community college collision industry training program spend their three-month co-op at one of his shops.“We try to have them touch each one of the different disciplines within that 90 days,” Reichen said. “So they get to see where their appetite might be. During that 90 days, they’re learning the culture. They’re learning to come to work on time, to keep their work area clean, to read the OEM repair procedures, to read and follow the repair plan. They understand they’re part of a team.”Other entry-level hires often start off in a shop’s parts department, with opportunities for a career path laid out up front.“You’re not going to be stuck on the wash rack or with a broom the rest of your life,” Reichen said. “If they demonstrate a good work ethic, then our master technicians will say they are interested in taking on this person, being a mentor, to grow them, whether their interest is on the refinish or body side or mechanical.”He said getting on a collision repair training program’s advisory committee is one of the best ways both to find entry-level employees and help with the industry’s overall technician shortage.“We also look at the high schools with the SkillsUSA program,” Reichen said. “We find that even though a high school may not have an auto body or refinishing program, they may have a mechanical program. And with our industry changing, with more and more calibrations and ADAS and things like that, there’s opportunity there. You have to get creative.”He said his company also works with those being released from a state penitentiary. “That involves a certain amount of calculated risk,” Reichen acknowledged. “It’s a lot of work, but we’ve had a pretty good success rate with doing that.”Andy Tylka of the Tag Auto Group in Indiana acknowledged it has been a challenge maintaining his company’s culture while growing the business from six shops to 15 over two and a half years.“But those people decided to sell to me because our culture was very similar to theirs,” Tylka said at the SCRS event. “A single-family-owned culture. Knowing everyone’s name, having those conversations, knowing something about everybody’s life, them knowing your life.”He said rewarding loyalty is extremely important. “There might be a shop that needs a technician and they’ll just load [the new hire] full of benefits and pay, while disregarding the loyal employees who have been there all along,” Tylka said. “I need to do a better job of that as well.”Growing your own new employees is a great way to instill your culture, he said. He spoke at several Indiana Auto Body Association chapter meetings last year to share details about his company’s apprenticeship program, including how it’s structured, the check-off lists of what apprentices need to learn and how to find apprentices, not just through auto body job boards but those for construction and plumbing, etc.“Because there are people in those trades who are having a bad day or are looking for another industry,” Tylka said. “What shocked me was through all the chapter meetings, there were only two shops that had a structured apprenticeship program. All the others were deterred from getting apprentices because they just didn’t know what to do with them."I think that’s what the industry needs is at least some kind of guideline to give a mom-and-pop shop some direction as to apprentices other than just putting a kid with a technician and hoping they learn something," Tylka said. "I’m hoping as our apprenticeship develops to share that within Indiana, and that will start to have a snowball effect.”

From the Desk of Mike Anderson: Now is Not the Time for Collision Repairers to Give Up on OEM Certifications

I’ve recently started to get a lot of phone calls and questions from shops when I’m doing seminars asking, “Mike, should I renew my shop’s OEM certifications?” I say the answer is absolutely yes. Here’s why.The forecast for OEMs is that a key future revenue stream is going to be app-based subscriptions. It’s going to be a little like what GM has done with OnStar, or how SiriusXM radio operates. As I’ve researched this, here are some quotes I’ve heard or read:“At least five automakers---Audi, BMW, Cadillac, Porsche and Tesla---are rolling out a subscription model for certain options, meaning consumers would pay monthly or annual fees to use features such as active driving assistance or voice recognition, even if those features are already built into the car," according to Consumer Reports in December 2021. "Industry analysts tell Consumer Reports that subscriptions could become a more mainstream way for automakers to deliver features.” “How would you feel about paying $5 each month for the ability to lock and unlock your car from a distance through an app? What about a $25-per-month charge for advanced cruise control or $10 to access heated seats? As vehicles become increasingly connected to the internet, car companies aim to rake in billions by having customers pay monthly or annual subscriptions to access certain features," Insider reported in February.“We have 50-some value-added products and services that we’ll be rolling out over the next 36 to 48 months,” Steve Carlisle, president of GM North America, said in February.I’m not sure how consumers are going to feel about such subscriptions, but I think it is important for collision repairers to understand drivers are going to increasingly be tied to the automakers' apps.Well, guess what is also likely to be inside those apps? A shop locator helping drivers connect with that automaker’s network of certified shops. I think that bodes well for collision repairers with OEM certifications.Here’s another thing to think about: Remember when aluminum-intensive vehicles were being more widely rolled out? Some automakers began restricting the sale of certain parts for those vehicles to their certified shops, to better insure major repairs on those vehicles were only done by shops with the equipment and training to do the repairs properly.With ADAS and the ramp up of electric vehicles, collision repair work is only going to become increasingly complex. I think we’re going to see more automakers restricting more parts sales only to certified shops.So that’s why I think giving up on OEM certifications now would be short-sighted. You have to look into the future. It also makes it important to check the shop locators for the automakers that certify your shop. Make sure your profile is correct, and you have really good photos in there of your shop and your lobby. Keep pushing for positive customer reviews online. All that is becoming all the more important. Check out my earlier column on “social proof."Listen, I understand some OEM certification programs provide more value than others right now. But I can tell you the automakers are hearing the message loud and clear from collision repairers that the programs need to provide more value.I think as we see this OEM subscription model come into play, it’s going to be really good for certified collision shops. So don’t give up. Stay the course.

CIC Committees Tackle Ongoing Shortage of Collision Repair Technicians

It’s not uncommon during discussions within the collision repair industry about the technician shortage for body shop representatives to point to what they see as the inadequate entry-level skills of students completing auto body training programs.Educators and others speaking at this spring’s Collision Industry Conference (CIC), however, offered their own perspectives on the issue.“We do not have a recruiting problem. We have a retention problem,” Virginia Oden, a trade and industrial education program specialist with Oklahoma Career Tech, said at the meeting held in Oklahoma City. “How we treat our employees is key. If you don’t provide them with opportunity, they will look elsewhere. They will tell you it’s because of the dollar. But people do not leave a job they love and where they feel appreciated. They leave because of management, period.”She said she has seen technical education teachers “work hard every day to instill the passion they have for this industry into those students, and then when they get out into the industry, they are treated terribly. They may leave your shop and go down the street to the next shop. But if they’re treated terribly at that shop, they will leave the industry."They can get better work and better hours, with less hard labor, working at Amazon," Oden said. "So it’s important once we get them recruited and passionate about what we do, we’ve got to treat them with respect. It’s not about ‘kids today.’ It’s every single person who’s breathing. We all want to be treated with respect.”Speaking from the floor at CIC, Dane Rounkles of American Honda said he once went to a collision shop in the Southeast to visit a student interning there while completing the Honda Professional Automotive Career Training program at a local school.“He wasn’t there, and I asked, ‘Did he not show up?’” Rounkles said. “No, he was mowing the shop owner’s yard. When I spoke to the owner of the body shop about this, he said, ‘I had to pay my dues. They’ve got to pay theirs. As long as the school keeps sending people, I never have to mow my yard.’ My point: Do not assume these kids need to do what you and I did.”Bud Center, chairman of the CIC Talent Pool and Education Committee, said too often he hears shops and schools pointing to the other as the cause of the technician shortage.“There needs to be more conversation. People need to get on the same page,” Center said.To that end, the discussion at CIC included panelists sharing ideas about ways to improve the technician shortage. Oden said collision repair and other technical training programs in her state hold summer camps that give fifth and sixth grade students some exposure to the different programs. During eighth grade, students tour technical training programs in their area.“It’s all about planting seeds. It’s making students and parents and counselors aware of the opportunities that are out there,” Oden said. “At the same time, having done this for a while, the industry tends to want the fruit off the tree. They don’t want to help plant the seed to grow the tree. So they’re not involved in those summer camps and eighth grade visits and sophomore showcases. It’s like anything: If that student has seen your face, they become comfortable with you. You’re building that relationship. You’re starting that investment.”Amber Alley, manager of Barsotti’s Body & Fender in San Rafael, CA, has spoken at a number of past industry events about the success her shop has seen from its involvement with a local college taking part in a pilot project funded by the Enterprise Rent-A-Car Foundation. The students in the two-year program rotate spending eight weeks at school, then eight weeks working in a shop. At CIC, Alley said she sees strong evidence of student interest in the trade.“I’ve done job fairs and that type of thing, and it’s not that people aren’t attracted to the industry,” Alley said. “It’s the presentation of the industry that they get once they come in.”Too often, she said, shops aren’t willing “to invest in people, and to offer them fair wages and a career path, because they’re scared that someone down the street is going  to give them a dollar more. But not everyone is going to make it at your shop. We all have to be willing to take the calculated risk of investing in someone. We can’t have the attitude that they need to prove themselves to us. We need to prove ourselves to them.”Oden agreed that offering a career path is essential to keep young people in the industry.“They want to know what those steps are: This is where you are going to start. This is the compensation package, and here’s how you grow that,” Oden said. “I can tell you: Every single student in our career tech programs wants to see that.”But at the same time, Alley said, the industry needs to have “a serious conversation” about what it will take for shops to pay competitive wages that attract and retain technicians in the industry.“None of this is going to matter if we can’t keep our doors open, if we can’t charge what the work costs, if you can’t pay the people what they need to earn to stay in the industry,” she said. “That needs to be a priority, having that conversation. We need to be big boys and girls about it, and be really serious…None of this is going to get solved unless we can pay people what their value is.”Center said when he asks shop owners what they are personally doing to help address the technician shortage and if they are involved with local schools, they often say they don’t have the time.“If you don’t have time as the owner or manager of a business in this industry to help solve this problem, who is going to do it? If you don’t have time, designate someone on your team to take that responsibility, and get this stuff done,” Center said. “Somebody has to take the lead.”

What Role Should a Current Backlog of Work Play in Auto Body Shops’ DRP Decisions?

A national survey in April found auto body shops on average have a work backlog topping four weeks, and during the Society of Collision Repair Specialists’ (SCRS) Repairer Roundtable this spring, a panel was asked whether that “unique scenario” in the industry should play into a collision repair business’ decisions related to participation in direct repair programs.Three association leaders and two shop owners responded.Jill Tuggle, who has been executive director of the Auto Body Association of Texas (ABAT) for five years, thinks it should play into a shop’s decision.“If there ever was a time that you could test the waters on operating independently of those contracts, it would be now,” Tuggle said. “Because you’re going to get the work. The work is there. You already can’t repair everything you have. If that’s a business decision you have been toying with, now would be a good time to do that.”Other association leaders with longer tenures offered some cautions to consider.“In order to do that, they have to have alternative plans,” Jordan Hendler of the Washington Metropolitan Auto Body Association (WMABA) said of shops choosing to exit DRPs. “I don’t think you can just sever those relationships. I think you have to have a solid plan for either marketing or getting into OEM certifications. In our association, the most successful members are specialized and OEM-certified in at least five or six brands, minimum. You need to know how you are going to create your own customer stream and own your portion of the market in a smart way.”Some collision repairers have chosen locations with little street visibility, Hendler said, lowering their overhead because they knew direct repair referrals would bring work to the door.“If you just shut those [DRPs] off, you now have no customer visibility,” Hendler said. “There’s a lot of pressure just to get rid of all your DRPs [without a plan] and think you’ll be fine. I think that’s a dangerous trap for shops. We’ve seen that happen.”Aaron Schulenburg of SCRS agreed each business has to evaluate its own situation.“I don’t think any one model is right or wrong,” he said. “There’s a lot of successful businesses up here [on this panel] and in the audience and in our membership base that have found success in every type of model.”He said the current situation does provide collision repairers with an opportunity to “prioritize where their profitability lies,” noting even large multi-shop operations (MSOs) that focus on DRP work are saying they are evaluating which of those programs offer the best fit.Ron Reichen of Precision Body & Paint, which is opening its fifth location in Oregon this year, said he sees too many shops operate based on fear.“Fear is an emotion, and good business decisions aren’t based on emotion,” Reichen said. “We’ve always believed that calculated risk is important. But the first part of that is ‘calculated.’ Do your research. Do your homework. Is it a good fit for you?"I think the insurance carriers have leveraged fear: ‘We’re going to shut you off and you’re not going to have any of our work.’ That’s a fallacy," Reichen said. "Even if you’re a DRP model, you’re building relationships with that client base. Those clients are still going to come back to you. They may change insurance carriers two or three or four times in their driving history. So [the insurer] doesn’t own that customer, but you do. Even if you are a DRP model, work at owning that customer. Then you can wean yourself off of [DRPs] and not make decisions out of fear."Would you [be happy with] 20% less work if you made 20% more on the remaining 80%? Of course. That’s a calculated risk,” he added.Andy Tylka was operating a six-location MSO in Indiana until recently, when two MSOs in other markets chose to sell their businesses to Tylka rather than to a national MSO. That expanded his company to 15 shops in 2.5 years. He acknowledged his choice to stay with a DRP model is, as it is for many shops, based to a degree on fear.“Because, obviously, growth results in loans,” Tylka said. “So if I’m not having customers come into my shops, I’m not paying these loans, and I’m responsible for 185 families.”He said collision repairers should recognize the current backlog the industry enjoys “won’t last forever.” All that said, he acknowledged he’s using this time to make some changes.“Those with the DRP model should be re-evaluating what relationships they do want to keep and which ones they don’t, even if they stay with a DRP model,” Tylka said. “That’s pretty much what we did.”Schulenburg said SCRS works to highlight collision repairers, like some of those on the panel, who have the confidence to operate in a model of their choosing, such as without DRPs.“I think there are a lot of businesses that I speak to that don’t realize there are businesses that operate that way,” Schulenberg said. “It’s not a matter of saying one model over another. But there are businesses that operate successfully in ways that may feel foreign, but it’s their degree of confidence that drives the success.”

Collision Repairers Actually Lament Lack of Insurance Adjusters in Shops

Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) said he was surprised by one of the findings of the association’s survey earlier this year asking shops about what changes could have a positive impact on their business.“I never in a million years thought the response from a collision repair facility would be: Have more adjusters come back out to my shop,” Schulenburg said, noting multiple respondents shared such statements.During a Repairer Roundtable panel discussion of the survey findings this spring, Kyle Bradshaw, director of operations for K&M Collision in Hickory, NC, said he understands the sentiment.“We spend a lot of time trying to educate insurance appraisers,” Bradshaw said. “So if it’s somebody who comes to our shop frequently, I don’t have to explain the same operations on every single job. However, [with remote claims handling] it’s basically like playing roulette; you don’t know who you’re going to get. It’s burdensome. It takes a long time. Fortunately, in our state, physical inspections are required. Our members have started to lean back on the administrative code: ‘Listen, you need to physically inspect the vehicle.’”Jordan Hendler of the Washington Metropolitan Auto Body Association said when the law in Virginia was being changed in 2016 to allow for photo estimates, the association fought hard to make sure a caveat was included in the legislation that “if there is any disagreement with the repairer, then a physical inspection is required.”“That’s something we pushed for, and I’m glad that we did because that’s become really important in the last couple of years,” Hendler said.But later in the discussion, when panelists were asked what they think will not return post-pandemic, Andy Tylka of the Tag Auto Group, which operates 15 shops in Indiana, kept his response brief. “Simple answer: Adjusters being in the shops,” Tylka said.Schulenburg said he agreed photo-based estimating isn’t going away, but insurers need to recognize they may not “reap the gains and expect the process to work well” if they also do away with their knowledgeable staff.“That’s one of the things we hear quite a bit from our membership, about the length of approvals, because the process ends up going back into a human’s hands, and the technical acuity of the human who is handling it just isn’t the same as it once was,” Schulenburg said. “So it’s just leading to longer cycle times, longer interactions, that negatively affect the consumer experience.”

CIC Committee Looking at How Estimates End Up on Vehicle History Reports

The Collision Industry Conference (CIC) Data Access, Privacy and Security Committee in April continued its ongoing discussion related to auto body shop estimates resulting in entries on vehicle history reports.One key point discussed at the CIC held in Oklahoma City: is the VIN being too widely shared within the industry?“The underlying piece for us is there’s no vehicle build data” included in the VIN, committee co-chair Dan Risley said. “A lot of people assume if you have a VIN number, you probably have build data, but that is not the case.”Pete Tagliapietra of DataTouch shared a slide showing his view of which entities in the industry actually need access to the VIN during the repair and claims process, noting “the list is not that long.” A company doing vehicle diagnostics, for example, needs the VIN in order to obtain the needed vehicle build data, he said.“However, if I’m a dealer and I’m selling parts, I only need the last eight of the VIN,” Tagliapietra said. “What’s really important is the industry getting to the point of controlling the VIN, making sure it’s protected and information isn’t shared where it shouldn’t be shared.”Aaron Schulenburg of the Society of Collision Repair Specialists agreed, noting one of the shops that raised this issue nearly faced litigation from a customer who assumed the shop had shared information with a vehicle history reporting company.“He stopped that from happening, because he stopped putting the VINs into repair plans,” Schulenburg said. “He’d put it in, decode the vehicle, pull it out and not have it in there. But that’s not practical.”Sharing the VIN as part of getting parts pricing during the estimating process is one of several theories on how merely writing an estimate on a vehicle can result in an “incident” entry on a vehicle history report; the dealers getting that information could have agreements to share that data with CARFAX or others.Tagliapietra said another common way to capture estimate data is if there is a data pump running on a shop’s computer system, extracting data for a third party.“Data pumps have become prolific,” Tagliapietra said. “It’s gotten out of hand, from my point of view, because the data has become so valuable. Most shops probably have a data pump, or more likely multiple data pumps, that are sucking the repair line information and personally identifiable information off of every estimate they write.”At past CIC meetings, CCC Intelligent Solutions has said it does not share data with CARFAX. During April’s meeting in Oklahoma City, Jack Rozint of Mitchell International delivered a similar message.Rozint shared the relatively short list of companies that receive access to a VIN through his company’s system during the estimating process. He said no VIN data is shared outside of Mitchell Cloud Estimating unless the user enables third-party integrations or EMS/BMS outputs, which a user can shut off at any time.“If you use our estimating system in a standard configuration, as most of our users use it, without enabling any of those third-party integrations, we don’t send the data anywhere,” Rozint said. “It’s been brought to my attention there may be other information providers that, in the course of writing an estimate, bounce the VIN off a number of dealerships to get pricing information, and that just writing an estimate in another system may actually share the VIN with multiple parties that you may not even be aware of."But that does not happen with Mitchell Cloud Estimating," Rozint said. "If just the act of writing an estimate is causing CARFAX to get the data, I’m guessing the estimate wasn’t done in Mitchell. Now we do allow our customers to export BMS and EMS [data files] to whomever they choose. They can do that without Mitchell’s involvement. We allow our customers control of our data as they see fit for their business. So there’s things that can happen outside of Mitchell’s control, but that’s in the control of the user.”Trent Tinsley, who co-chairs the CIC committee, said the committee has been having ongoing discussions with several vehicle history reporting companies for months, inviting them to speak, and hopes to have that happen at CIC in July.“What we want to aim for is: can a shop explain to a customer, if they were asked, where their data goes,” Tinsley said. “That is what as a committee we are trying to work toward.”“It’s a huge issue for consumers, and we don’t know how to explain to them how [a vehicle history company] got that information,” New Mexico shop owner Scott Benavidez told the committee.Benavidez owns a collision repair shop and a vehicle inspection company, two separate businesses, using the same estimating system in both.For the inspection business, his company writes a “reconstructive estimate,” showing what work had previously been done on a used vehicle based on the company’s inspection. At some point he discovered even that reconstructive estimate, with no parts ordered, would trigger a new incident report on a vehicle history report for a vehicle already repaired.Benavidez’s concern is shared widely, based on some polling at the CIC meeting.The committee in 2020 developed a set of five Golden Rules for those entities accessing and using shop estimate data; they can be viewed on the “work products” page on the CIC website. The goal was that by getting companies to agree to abide by the rules, the industry could deter data being used without a shop’s awareness and permission.At CIC in Oklahoma City, attendees were asked if they feel those Golden Rules are being adhered to by the majority of their trading partners; 68% said no. Among just collision repairers at the meeting, 88% said they did not believe they were in control of their company’s data and how it’s being shared.Schulenburg said he was surprised by that, because while he understands shops’ frustration, he thinks the data-sharing problems may be caused by a relatively few bad players.“As skeptical as I am about the exchange of data, I believe most companies are doing the right thing,” Schulenburg said. “I think most companies doing the right thing are getting a negative implication because there are some companies choosing to make data aggregation an ancillary business model to their core function."Everybody in this industry should be concerned about that," Schulenburg said. "It’s impacting the view of the collision repair facility, and impacting the view that collision repairers have of products [in the industry] that exchange data. We should all be really vigilant so we can trust one another with that exchange.”

SCRS Offers Update on Collision Repair Industry Projects; DEG Offers Update

Research into the accuracy of the blend time formula commonly used in the industry is among the projects the Society of Collision Repair Specialists (SCRS) has on its docket, the association reported at an open board meeting held in April in Oklahoma City.“Many of our members have challenged us that blend times simply aren’t realistic,” said Aaron Schulenburg, executive director of SCRS. “We hear you. We have made a decision to invest in doing more research around that, and to bring answers in a transparent manner back to the industry."Blending is a very challenging task, that has lots of steps and preparation, and we have long challenged that 50% [of full refinish time] formulas aren’t reflective of what’s actually necessary with the blend task.”Schulenburg said the association also is “close to a solution” in terms of offering a health insurance plan to the industry.“We’ve been talking for a long time about health care [and] are continuing to work on solutions there,” Schulenburg said. “I can’t reiterate this enough: The last thing SCRS wants to do is develop a solution that we don’t believe is going to be for the long-term, and ask the industry to consider it, to switch, to go through the process of doing all that, and end up in a place where a year from now you’re not in a better position than you were."That’s been the stumbling block for us in a lot of the solutions we’ve found. I think we’re really close to something, [and] as soon as we know that we can feel confident in putting our name and brand and endorsement behind it, we will.”SCRS board member Michael Bradshaw said the association also is continuing to develop weekly “Quick Tip” videos, offering brief information and advice related to technical processes, estimating, negotiation, documentation and business practices.“They’re great tools for your staff,” Bradshaw said. “And something we’ve seen in our facility: If there’s a friction point on an operation between third-party payers and your staff, these videos can be a really quick and easy tool to send to [the insurer] to help them comprehend what’s going on and why it needs to be done.”He said SCRS also will be creating some videos aimed at vehicle owners.“As shops, we all sometimes struggle to convey an appropriate message to the consumer as to what’s going on with the claims process or why certain things need to be done or why certain things happen in the manner that they do,” Bradshaw said. “So we’re going to shoot videos that are geared toward the consumer. The shops can then use them to educate their consumer base, and hopefully make life a little easier for them.”Also during the meeting, Danny Gredinberg, administrator for the Database Enhancement Gateway (DEG), said of about 19,000 inquiries the DEG has received over 15 years regarding missing or potentially inaccurate information in the industry’s estimating guides, more than half---52%---have resulted in a change by the information providers.“That’s a pretty alarming number,” Gredinberg said, but also pointed to the value the DEG offers as a free resource to the industry.Although the estimating system providers have long provided a way for anyone in the industry to submit such inquiries directly to them, the DEG was created---and continues to be funded---by a number of shop trade associations, including SCRS, as a centralized and easier way to submit and monitor what happens to such inquiries.Gredinberg said one strength of the DEG is that it is used, and considered credible, by both collision repairers and insurers.“I got an email from a DEG user, contesting a labor time on a replacement rear body panel part,” Gredinberg cited as one example. “He shared with me the email he got back from the actual adjuster. It started out with: ‘Alright, Robert, sorry for the delay, but just got word from on high [that] we’re good to go. They cleared the separate time on the end plate; that DEG form was worth its weight in gold.’”Gredinberg said DEG inquiries recently have helped lead Mitchell International to add wording to its estimating guide about destructive weld testing, and the time and costs of researching OEM repair information being not-included.Similarly, CCC Intelligent Solutions and MOTOR recently updated their estimating guide to add a labor procedure related to front bumper camera and sensor aiming, and what is not-included in the refinish time for a “minor panel” when it is being refinished independently of a major panel.“Recently, I-CAR did a ‘Repairers’ Realm’ with Honda talking about laser brazed roof replacement,” Gredinberg said. “The week after that video got released, a repairer watched it, had a Honda in his shop, and noticed there was no way he could do that roof replacement for the time given. With that video, we were able to show the information provider, and within a couple days, they updated the time, and added some additional footnotes about one-time use parts and additional brackets and bolts that needed to be replaced as well.”

SCRS Urging Auto Body Shops to Help Consumers Remove Personal Data from Total Loss Vehicles

Auto body shops have long given customers whose vehicle has been declared a total loss a chance to get any of their personal belongings from the vehicle before it is towed away. But what about all their digital personal information contained in that vehicle?A Society of Collision Repair Specialists (SCRS) committee is working to raise awareness among shops about assisting customers releasing a vehicle by ensuring their personal data is deleted from the infotainment system.“We found that most shops don’t know how to deal with this, or don’t have protocols in place yet, so we thought it would be worth addressing from a collision repair perspective,” Amber Alley, vice chairman of SCRS, said during the association’s open board meeting this summer.The committee pointed to an SCRS Quick Tip video that explains why this is an important step. The systems may be storing information such as the owners' contact names, addresses and phone numbers; garage door opener codes; and copies of texts, emails and call history.“Phone syncing really is resulting in the car becoming like someone’s cell phone on wheels,” Alley said. “Pretty much anything on your phone could be getting recorded onto some module inside the car, particularly the infotainment system.”Alley said the committee hopes to develop some best practices related to this for shops---possibly including sample wording for a customer authorization form---but in the meantime, she said the steps involved appear to be more commonly found in consumer-focused materials from the automakers rather than in the OEM repair procedures.“So as a shop, when looking for this information, I would suggest you start with the owner’s manual and customer-based materials from the car manufacturer,” she said. The committee noted it’s not just a vehicle’s infotainment system that may include personal customer information. Oregon shop owner Ron Reichen shared images from a vehicle’s 360-surround camera captured even while the vehicle was not in operation as part of the vehicle’s security system. That data could include images that share information the customer would not like a future owner of the vehicle to have---such as where they drop off their kids at school or daycare---and also could include information from the vehicle’s time in the shop, such as images of license plates of other vehicles in for repairs.Even if a vehicle with such a system isn’t a total loss and is repaired and returned to the customer, Reichen noted, “It’s monitoring all the activities going in the shop. The client is going to know what your housekeeping is like, when you start work and when you quit work, were you working on the car when you told them you were working on the car. There’s another set of eyes there.”Shops may want to determine if such a system can be put into “service mode”---with the customer’s permission---to avoid, as Reichen once experienced, a Tesla owner calling over the weekend to say he’d been alerted by his vehicle app that his car door was ajar in the shop.The committee even discussed whether clearing data is a service shops could also offer their customers in other circumstances, such as prior to the sale of a vehicle.“I think that would be a great idea,” Reichen said. “People know how to upload [their information] and get so accustomed to using it, but each one has its own nuances on how to remove all that.”Alley agreed.“Any time you can reconnect with that customer and build that long-term relationship and trust, when you’re offering more value than just replacing a fender, it’s always a good idea,” she said.A “Who Pays for What?” survey of U.S. shops this summer found more than one-third of shops (35%) said they are paid always or most of the time by the eight largest U.S. insurers when they charge for the labor to erase a customer’s data from a vehicle declared a total loss. That had more than doubled from the first time the survey asked about the procedure a year earlier. Despite this, more than four in five shops acknowledge not having sought to be paid for this work---likely because most shops aren’t doing it.On a related note, Reichen and Alley at the SCRS meeting said shops may want to caution their customers about plugging their phone into a rental vehicle’s infotainment system.“I’ve had past phones show up on rental cars that I’ve rented,” Alley said. “The system asked me if I was five other people. That infotainment system is storing that information, and it will continue to be stored in there unless someone goes in and deletes it.”Reichen agreed most customers won’t think about their information being captured when they plug their phone into a rental vehicle.“I think we as repairers have an obligation to communicate that to the customer,” he said.Alley also shared an experience she had that led her to think it’s not just customer information shops may want to remove from vehicles. A trip she’d made to El Salvador about five years ago included visiting some body shops there. It’s not uncommon, she said, for those shops to acquire and repair total loss vehicles from the U.S. In and on some of those vehicles, she said, she saw “window tags from the shop, customer last names and windshield tags slapped on the vehicle by the insurance company or the auction.”No matter where a total loss vehicle processed by a shop ends up, “That’s traceable information right on those tags,” Alley said. “Personally, I don’t want these cars tracked back to our facility. We’ve had someone call us two years later about a total, saying, ‘I found this paperwork in the car from your shop. Can you go over what was done,’ or asking us if we have old parts. So we’re recommending that you clean out the [total loss] car thoroughly of your shop information before it’s released.”After her shop’s customers remove their belongings from such vehicles, she said, the shop removes any windshield or key tags, paperwork or seat covers that identify the shop, and makes sure customers haven’t left things without realizing those items may include their address, banking information, etc.Also speaking at the meeting, Danny Gredinberg of the Database Enhancement Gateway said he had once collected his own items out of a car he was selling, but overlooked the toll road transponder sticker on the windshield.“Six months later, I got a bill from the toll company, telling me the car had been rolling through the tolls,” Gredinberg said. “I ended up paying almost $500 in toll fees. They were willing to work with me on that because I had a bill of sale for the vehicle, but it was a good reminder to remove even little stickers.”

Mike’s Auto Body Gave Away 100 Cars in 21 Years, Changing Countless Lives

When Crash Champions announced it was acquiring Mike’s Auto Body (MAB) in June, many people throughout the Bay Area thought about MAB’s nationally acclaimed Benevolence Program.It became part of the brand at Mike’s Auto Body as the company and its owners, the Rose family, gave away exactly 100 vehicles to deserving families, individuals and nonprofit organizations over the past 21 years.The goal has always been to give people a hand up as opposed to a handout with the gift of transportation, and the MSO achieved that mission with every vehicle it presented to a deserving recipient.In 2001, Mike’s Auto Body began giving refurbished cars to people in need. The very first recipient was a single mom with two children. Reporter Wayne Freedman from Channel 7 ABC News reported on the presentation and broadcast the story on the evening news. It quickly became an annual tradition, as Freedman and his news team reported on every presentation throughout the years during the holiday season, along with more and more media that flocked to the feel good story.Over the years, Mike’s Auto Body got more people involved in its Benevolence Program, including vendors, technicians, car rental companies and insurance partners. The vendors donated products and their services, the technicians at Mike’s Auto Body donated their time and skills, and the insurance and car rental companies donated the vehicles.The vehicles donated were considered totaled, but by refurbishing them and returning them to their pre-accident condition, they looked brand new.Mike’s Auto Body made its first presentations from 2001 through 2006 at its Concord, CA, location, with a one-year exception in Brentwood, CA. Since then, it has held car presentations at some of its shops in the East Bay, as well as at other locations, including in conjunction with the U.S Coast Guard’s CPOA in Alameda, CA, on the pier in front of the USS Hornet Museum.The Benevolence Program director at Mike’s Auto Body is Sal Contreras, who has been involved with every car presentation since the program’s inception and is considered the Benevolence Ambassador."We always say that at Mike’s, we are providing 'a gift of charity wrapped in dignity,'" Contreras said. “These deserving people are working towards making a better life for their families; all they need is reliable transportation to make it happen."Early on, Mike [Rose] said he wished he could give 100 cars to families; well, we achieved Mike’s dream in December of 2021," Contreras said. "We presented the 100th car to a single mom who had been struggling to raise her family without a car. The Benevolence Program came full circle, as our first recipient was a single mom raising her family.”The Rose family made the Benevolence Program part of their lives, and it was quickly ingrained into their DNA.“We feel very fortunate to be involved with such a wonderful program and are very excited to be able to give back to the area communities that have supported us for the past 50 years,” owner Mike Rose said. “After receiving hundreds of applications over the years and reading the heartbreaking stores, we only wish that we could do more. But hopefully, with increased publicity of our Benevolence Program, other shops will adopt a similar program of their own.”“As a family-founded company, we have always prioritized philanthropic initiatives, in particular those that most impact our neighbors and the community organizations they rely on,” said Brennan Rose, CEO of Mike’s Auto Body. “To this end, we could not be prouder to celebrate our 100th vehicle donation as part of our Benevolence Program. For more than two decades, this program has been a staple of our charitable giving, and as we transition under the Crash Champions name and banner, we look forward to finding new and creative ways to give back to the communities where we operate.”CFO Ragen Ortland-Rose was a major force behind MAB’s Benevolence Program."We never imagined that the program would grow as it did,” she said. “Our people and the community rallied around it, as the power of giving grew exponentially. We’ve always stressed quality in everything we do, and the program illustrates that. We enabled so many worthy people to improve their lives, and that’s why it gained so much momentum."Other body shops reached out to us and started their own programs, so the giving spread, and today our program will live through other shops all over the country," Ortland-Rose continued. "We know that Crash Champions will continue our legacy in some form because they share our passion for helping others. My father and my mother stressed that this is important, and that’s why we did it every year for 21 years."When we gave away our 100th vehicle, we did not realize that it would be the last within our program, but now it is fitting and a number that all of us can easily remember!" Ortland-Rose concluded. "Thanks to everyone involved, including employees, insurance partners, vendors and the nonprofit organizations that helped us find worthy recipients over the years.”

Videos Keep Everyone in the Loop While Building Trust and Confidence 

Everyone has that one friend constantly taking photos or shooting videos with their cell phone. Apple's new iPhone 14 has more sophisticated cameras than ever. The camera in my iPhone 13 Max Pro is better than my Nikon and so much easier to use. Shops now are using more and more videos to perform tasks all the way from providing quick updates for their employees, partners and customers, to training sessions, informational meetings and more. The best part is they don’t need to be Oscar-worthy or highly complex to be effective. Angel Iraola from Net Computer Business Solutions in Walnut Creek, CA, has been leveraging videos for his clients all over the country for more than a decade. Many of them are less than five minutes in length, and very affordable for even his smallest clients. In most cases, a technician, painter or front office person can shoot and edit the videos with their cell phones. Then, Iraola posts them everywhere online and uses his strategies to share them with the right markets and the right time. He has also encouraged many of his clients to use videos for customer service and internal communications. Iraola’s body shop customers love videos and have seen positive results almost every time, he said. “Many technicians are now using their cell phones to document an entire repair, which is outstanding,” he said. “They are able to engage the customer and keep them in the loop from start to finish. Rarely do they ever question anything because they can see each stage along the way. There are no more surprises on a Friday afternoon when they get their car back. "Paperwork and even regular photos are not as effective and videos are so easy to produce---it ends up being an essential and valuable part of the repair process.” The video explosion is ongoing, with YouTube firmly at its center. YouTube had 2.6 billion users worldwide as of 2021, according to Statista. The only social network with more monthly active users is Facebook, with 2.9 billion. “Today, almost every industry in existence is using video increasingly as a tool to sell products and services,” Iraola said. “It enables them to provide full transparency for itself and its customers and building trust. In an age of instant information, customers will believe it only when they see it, and there is nothing more instant and real than video.” In the collision repair industry, shops are embracing video, and many insist all their techs and advisors use it on several levels. The scenario differs, but in many cases, a technician will find something additional that requires attention now and wants to communicate it to the customer or insurance company. Rather than using a lengthy text, email or phone call to explain the issue, a video tells the whole story fully and succinctly.If you want to monitor the explosive evolution of video worldwide, take a look at the never-ending growth of YouTube and be assured every industry on the planet is currently looking for new and exciting ways to use it. 

EV Manufacturers Discuss Restricted Parts, Booth Concerns, ‘Service Mode’

A panel of manufacturers of electric vehicles shared information collision repairers will need to know about their vehicles. A lot of has been written about potential challenges EVs pose in the paint shop, but representatives of several electric vehicles downplayed that concern in terms of their companies’ vehicles. Jake Rodenroth of Lucid Motors noted his company started out producing batteries before vehicles.“So we’ve been doing this a while, and in our case, baking is not really a concern,” he said. “You don’t want to get crazy with temperatures, but it’s not as bad as it used to be.”Kelly Logan, senior manager of the Rivian collision repair program, concurred.“We have a position statement already in place about baking the vehicle. It’s not a concern,” Logan said. “Today’s downdraft paint booths move air very efficiently, and the good thing is the battery is on the outside bottom of the car. "Battery engineers always freak out when you talk about putting the car in an oven and turning it on," Logan continued. "They think worst case scenario. But in reality, when you’re baking that vehicle, the panel is 150 degrees or maybe it gets to 160. But at the bottom of that car, with all that air coming down, it’s never really hitting that temp.”But Ben Cid, collision business manager for Mercedes-Benz, said shops also shouldn’t rely on general practices that say “always do this” or “never do this” for all vehicles; look at the OEM procedure “for the specific vehicle you’re doing at the time you are doing it,” Cid said.To that end, Rodenroth noted his company prefers use of liquid masking on their vehicles, but in any case doesn’t want the front end bagged improperly because of the vehicles’ cooling fans.“Those are really powerful, so you can suffocate the car,” Rodenroth said. “Follow the service manual. We have some direction around that.” Logan, whose company is on track to deliver a total of 25,000 vehicles this year, said the company has visited hundreds of body shops in the past year as it began building a certified network. One thing he said they look for is whether specialized equipment within a shop is clearly being used and not just gathering dust in a corner.Non-certified shops will find the automaker is limiting the sale of many parts. “We do have restricted parts,” said Frank Phillips, collision program manager for Rivian. “We use the phrase anything welded, riveted, bonded is a restricted structural part. Anything to do with high voltage is restricted. Anything to do with safety, such as airbags, seat belts, are all restricted parts. One of the other things we restrict are the targets for calibration. Those are limited to our certified network to help [ensure] confidence that the calibration is being done correctly.” Both Rodenroth and Logan acknowledged they don’t yet have a “service mode” for their vehicles that a shop can use to ensure EV owners aren’t able to connect with the vehicle through their app and aren’t getting notifications based on what’s happening with the vehicle during repairs.“We have a service mode that is in the works that will come over with another update at the end of the year,” Rodenroth said. “We do have a switch or button in there called ‘tilt and shake mode’. It shuts off the alarm and notifications so it’s not ringing while the vehicle is on the tow truck.”Logan similarly said a service mode is “in the engineering pipeline” that will be available “in the near future.”In the meantime, they said, collision repair shops may want to disable certain systems on an electric vehicle in for repairs, in part to reduce "parasitic draw" on the vehicle’s 12-volt system.“The vehicle’s security system can bring the 12-volt circuit down if the cameras are actively recording for theft or damage,” Rodenroth said. “In our case, we have 14 cameras. When you’re recording that level of stuff, it can draw the battery down. So if you take a vehicle in, go over it with the owner and make sure they turn this stuff off, because you won’t be actively charging [the vehicle] every night like they do when they are at home.”The environment can also contribute to parasitic draw and to how often an EV in for repairs will need to be charged. “Depending on how hot a Rivian gets, it will turn on the air conditioning system to cool and maintain that battery,” Logan said. “Or if it’s extremely cold out, the car may need to heat up that pack. So it’s not uncommon when you have an EV all torn apart, you can see an increase in the parasitic draw. It’s running systems behind the scenes. You may have to charge that vehicle a couple times during the repair process.”

Collision Repair Industry Trend Data Shows Need for Changes to Insurer DRP Metrics

Collision repairers have for some time been saying changes they are seeing within their business point to a need for insurers to adjust their key performance indicators (KPIs) metrics for direct repair claims.Recent industry data from CCC Intelligent Solutions support the trends shops are reporting.Average repair costs, for example, rose 8% in 2021, about one percentage point higher than U.S. inflation overall; the average part cost across all part types---OEM and aftermarket---was also up 8% last year, the “largest annual increase we have seen” since CCC began reporting that data in 1997, according to CCC’s Susanna Gotsch.“Moving forward, most analysts expect that we’ve seen most of the increase in parts costs that we are going to see,” Gotsch said. “We’re not likely to see part prices reverse substantially, but the largest increases that we experienced in 2021 are not likely to be repeated in 2022. Where most analysists are predicting [the industry] will see the most pressure in 2022 will be on wages.”Average total labor hours per repairable non-comprehensive claim grew slowly from 2011 (23 hours per claim) through 2019 (23.9 hours), but then jumped to 24.7 hours in 2020, and to 25.8 hours last year. Gotsch said the pre-pandemic growth was related to vehicle complexity, but the larger increase in the last two years is based in part on the increase in the percentage of non-drivable claims.Compared to 2019, there was more than a full percentage point jump in DRP claims with repair costs above $10,000 in 2021, and a 2.5 percentage point jump in claims between $5,000 and $10,000. That results in longer cycle times, Gotsch said.“For each $1,000 increment, we essentially see an additional two full days in the overall repair time, or keys to keys time,” she said. “Industry wide, DRP repairs are now taking over 12 days, two full days above where they were in 2020, and a little less than two full days longer than they were in 2019. By the time we get to a $10,000 or higher repair, the average repair time exceeds 35 days."Subsequently, we hear more carriers saying their customers are running out of allocated rental days, and many carriers have said they are looking at…their policies to determine if those [limits] should be adjusted.”Another data point of note from CCC’s recently-released annual Crash Course Report: The national average body rate in 2021 ($52.86) was up just 1% from the prior year, the smallest percentage increase since 2011, in a year when overall inflation in the country was 4.7%.CCC reports overall claim counts were up nearly 10% in 2021 compared to the prior year, but still down more than 13% from 2019.“Month-by-month comparisons, however, show volumes have been steadily rebuilding,” CCC said in the report. For example, overall claim counts in January 2021 were down 19% versus January 2019, but by December 2021, overall claim counts were down just 5.9% compared to December 2019.One statistic in the CCC report will be of little surprise to shops: The percentage of claims with supplements continues to increase. Back in 2001, more than 50% of DRP claims did not have a supplement, according to CCC. Today, it’s just over 30%. The percentage involving two, three or four supplements has nearly tripled over that time span to more than 30%.“In addition, the share of the overall repair cost added during supplements has also grown, where over 35% of the overall repair cost is added during supplements for those claims with four or more supplements,” the report said.Another interesting statistic for DRP shops concerned about the metrics insurers are using to measure their performance: The decline in labor hours per day that has been occurring since 2017 only accelerated in 2021. Direct repair shops were producing about 2.5 labor hours per repair day on drivable vehicles in the second half of 2021, down from just over three hours during the same period in 2020, and down from more than 3.5 hours in 2016 and 2017.For non-drivable cars, shops were producing about two labor hours per day during the second half of 2021, down from above 2.5 in 2018 and 2019, and about three in 2017.CCC cites such factors as the technician shortage and the increased number of non-drivable repairs as the likely cause of the change. But a number of shops said they would point to other causes.“For us, it’s absolutely the parts shortage,” one shop owner said. “It’s got us stopping and starting on jobs like never before, and spending way too much time shuffling cars around in the shop and back lot.”Two other collision repairers said they think the decline is only going to continue because of the ever-increasing vehicle complexity.“It’s not like you can just hang a replacement fender or replace a bumper cover any more,” one shop manager said. “Those jobs have mostly gone away. There’s electronics involved with almost every part now.”Still another had what he acknowledged was just a theory.“A lot of CCC’s data reflects only DRP claims,” he said. “Many of the top independent shops have cut way back or eliminated DRP agreements in recent years, like we have. Not to knock the big MSOs, but even some people I know who work at them say they’re not as productive as shops with an owner on-site. They can help contain costs, but it’s not usually through better productivity. I think the CCC data reflects more DRP claims going through those MSOs.”MSOs with 25 or more shop locations last year accounted for 43% of uploaded DRP appraisals, according to CCC, a percentage that has grown nearly four-fold since 2008.Whatever the cause, even CCC acknowledged labor hours produced per day isn’t likely to rebound soon.“With many repairers seeing repair volumes grow while still unable to find the technicians needed, we expect we will continue to see labor hours per repair day remain below where it was pre-pandemic,” Gotsch said.

Collision Repair Shops Should Check Policies Related to Drugs/Alcohol, Animals in Workplace

California-based employment law attorney Corey King discussed a variety of topics during the Collision Industry Conference (CIC) held earlier this year: company drug and alcohol policies, stocking up on COVID tests and “service animals” in the workplace.As more states legalize marijuana, King said, use of cannabis and related products grows. It’s a good reminder, he said, for businesses to ensure their drug and alcohol policy does not include the phrase “under the influence.” If it does, King said, “that policy is completely untenable and, I would argue, completely unenforceable.”In a state where the alcohol DUI limit is .08, King said, “Do you really want somebody jumping behind the wheel of that car to test drive it when they would blow a .07? They’re not in violation of the law or your policy because they’re not under the influence by the legal standard for alcohol.”King also said more employers are getting employee requests to bring a “service animal” to the work place. In order to qualify as a “service animal” under the federal Americans with Disabilities Act, it has to be a dog or, oddly, a miniature horse individually trained to perform tasks for a person with a disability.“The ADA does not recognize emotional support, comfort, companionship or guarding as a recognized task,” King said. “So your emotional support animal isn’t protected under the ADA. This applies even if that person brings you a doctor’s note that says [they] need this emotional support animal.”If asked about bringing an animal to work, the ADA requires employers to “engage in an interactive process… and provide reasonable accommodations that will allow disabled employees to perform the essential functions of their job,” King said.Ask what kind of animal it is, he said. If the employee’s disability is obvious, the inquiry is over and the dog or horse must be allowed. If it’s not obvious, ask if the animal is required because of a disability---but do not ask for documentation of the disability. If it is, ask what tasks the animal is trained to perform; do not ask for documentation of training nor for a demonstration of the animal’s ability.Common tasks include guiding the visually impaired, pulling a wheelchair, alerting people who are deaf, calming individuals with PTSD during anxiety attacks, alerting and protecting a person having a seizure or reminding a person with mental illness to take prescribed meds.If all those requirements are met, the animal must be allowed unless it becomes disruptive or a danger.“Now, if someone tries to make an issue of this with you, don’t go this alone,” King said. “Get hold of me, of someone you trust, who knows this stuff, to help you navigate through.”As COVID-related restrictions continue to be dropped around the country, King still suggested businesses encourage their employees to order the at-home rapid COVID tests being offered for free by the federal government.“Check your politics at the door: I guarantee you your state law says something about whether an employee can come back into your workplace after being exposed or testing positive,” King said. “I would almost guarantee you that it’s going to have a requirement that, before they return, they provide you with a negative test. You want to have those tests around.”King said his daughter had COVID early this year, putting the whole family in quarantine.“The four of us could not go back to school or work without having negative COVID tests, and finding a testing facility is a challenge,” particularly if you want immediate results and don’t want to stand in line with people who think they have COVID," King said. “You and your employees are [likely] going to have to prove at times they have a negative test in many circumstances. Encourage your employees to get those free tests, and be judicious about when they use them. Those are gold. Save them. They are literally going to set you free and allow you to re-enter the world.”

Examples Demonstrate Problems with Collision Techs Making Repair ‘Presumptions’

A presentation at the Collision Industry Conference (CIC) earlier this year included a number of examples of vehicle repairs that could easily be done incorrectly if a technician makes presumptions about the process based on past experience rather than carefully following the OEM procedures.Scott VanHulle, manager of I-CAR's Repairability Technical Support and OEM Technical Relations, cited a Silverado box side installed at the factory with 10 welds.“In the repair, you’re only putting seven in,” VanHulle said. “Where those three extra welds were, they want you to put crash-toughened adhesive in there. If you were to get to this point and only then realize you need to have crash-toughened adhesive, you’re going to have to remove that part that you already have partially installed because there’s no way to get the adhesive in there.”Jason Bartanen of Collision Hub pointed to something similar with the lower outer rail on the Chevrolet Bolt.“It’s attached [at the factory] with spot welds and MIG-brazed joints, essentially,” Bartanen said. “But when you do the replacement procedure, there’s adhesive, spot-welding, weld-bonding, rivets, rivet-bonding, plug welds and MIG-brazing. Seven different attachment methods on that one part that came from the factory with two attachment methods. So making an assumption that you know what you’re doing because you’ve been doing it for a long time is a very dangerous assumption to make.”VanHulle also shared slides related to a sectioning procedures for a front lower rail on a Ford Explorer. One slide of the procedure he shared calls for MIG welding.But in addition, he said, depending on which of two zones is being repaired, “you actually have to make these panels out of the service part that you have to rivet bond over the top of the area you just welded. So when you’re doing the repair planning, if you just quickly go through that procedure, you might think, ‘Oh we just need to weld it.’ Well, no, you have to make these parts. You have to do the rivets. So if you’re not truly understanding the procedure, and have those rivets in-stock, there’s no way the technician is going to know what to do, and he’s going to make a mistake or only do part of it.”VanHulle said another example of the increased use of adhesives by automakers can be seen in I-CAR’s free 51-minute “Repairers Realm” video on the roof replacement procedure for the 2022 Honda Civic.“The procedure is interesting, but if you don’t do the proper planning, and have the proper pieces in place, there’s no way you’re going to put that roof on correctly, especially if you’re assuming it was like the last Honda you did,” VanHulle said. “And this is not just happening with one automaker. All of them are having adhesives show up pretty much everywhere.”The presentation at CIC was similar to a message from American Honda last fall about making repair presumption. Scott Kaboos, assistant manager of collision repair training and technology for American Honda, said students at Honda’s hands-on training facility in Illinois are often surprised the ADAS cameras on one model year Accord will require different targets and processes than those on another.“Even within Honda and Acura, we have so many different systems, so many different calibrations,” Kaboos said. “There is no one standard way [across models] even within our own company.”It highlights the need to always check the automaker’s repair procedures for each particular vehicle. Kaboos said a student in one of his classes last fall told him he’d used an aftermarket scan tool on a 2017 Honda Odyssey, and followed that software’s recommendation to use a certain target and to put the camera into calibration mode.“He did that, and fried the camera,” Kaboos said, acknowledging he had to look up the reason why. “It turned out it was a dynamic-only camera. So it allowed it to go into [calibration mode], but then it went into a spiral loop, and would never come out of that function because it wasn’t designed to do a static calibration. He ended up having to buy an $800 camera and get it dynamically calibrated [to get the vehicle] back to the customer.”

Supply Chain Issues, Repair Complexity Major Concerns for Collision Repair Industry in 2022

Before the pandemic hit, people in the collision repair industry were most concerned about a lack of qualified employees and the growing complexity of OE repairs.Those problems still exist, but now the crippled supply chain has been added to the equation. It’s a whole new world and scary in many ways, so how will auto body shops be able to navigate through these uncertain and troubled times?Solid, carefully researched and highly relevant data can surely help everyone in this industry. Director/Industry Analyst Susanna Gotsch from CCC Intelligent Solutions, Inc., is well-known for being the author of the company’s annual Crash Course since 1995, where she interprets the numbers and forecasts what is going to happen next. Gotsch’s historical perspective supported by data is invaluable for anyone who works in the automotive industry.Gotsch set the table for this year’s report before diving into the numbers.“It’s hard to fathom that we are nearly two full years into the pandemic, but one thing we know for sure: The natural pre-pandemic order of things has been altered, leaving us searching for a new normal or rhythm to how we live, communicate and conduct business,” she wrote.Obstacles created by supply chain issues are a concern to every body shop in the world right now.“Despite new variants and ongoing debates on how best to balance public health and economic well-being, the U.S. economy has roared back, with consumer buying things like cars, homes, furniture, electronics and other goods," she said. "As a result of the increased demand, supply chains have been pushed to their brink, either from shortage of goods or people to deliver them."Whether it’s the auto industry’s shortage of semiconductor chips or metals critical to development of electric vehicles, or the medical industry realizing many of the most critical drugs and supplies are only manufactured overseas, all industries are having to re-examine and restructure their supply chains.”The supply versus demand imbalance has also impacted U.S. inflation in a huge way, which hit a 40-year high in December 2021, Gotsch said.“Labor shortages have also driven up wages across nearly all industries, with Conference Board data pointing to higher wages in 2022," she said. "The disruption experienced over the last two years has accelerated the pace of innovation across all industries, leading to the transformation of how business is conducted as technologies such as artificial intelligence (AI), telematics, mobile and cloud are being adopted to help inform and speed processes, and combat challenges stemming from labor shortages, new consumer expectations and other market dynamics.”The automotive repair industry is still struggling to find employees, Gotsch reported.“Representatives from Universal Technical Institute predict a wave of retiring Baby Boomers will create 100,000 auto technician job openings over the next decade or so, with the Bureau of Labor Statistics projecting a 4% decline in employment in the overall auto technician field through 2029," she said. "Finding technicians with the right skillsets is also a growing challenge as vehicle complexity increases.”Most collision repairers indicate the technician shortage has been the primary reason for longer backlogs of work. Repair work is up as auto accident frequency has risen. Many shops have indicated they cannot repair as many vehicles at the same time as they did before the pandemic, the Crash Course said.While repairers are seeing an increased number of non-driveable DRP repairs relative to the preceding two years, both driveable and non-driveable repairs are taking longer, and repairer productivity is lower.“Unfortunately, as repair costs climb, repairer productivity can sometimes suffer, customer satisfaction can fall and the likelihood that the customer needs to bring their vehicle back for additional work after repairs completed also increases,” Gotsch explained. “And it’s not just repair time that is taking longer. The time to get an appraisal has increased for traditional channels where the customer either is visited by an insurance staff appraiser or brings their vehicle in for a DRP appraisal.”Ultimately, the key to combat higher costs is to improve productivity, Gotsch outlined.“Unfortunately, new vehicle technology such as ADAS and EVs have added increased complexity and requirements for new skillsets, training and tools for the collision repair industry," she said. "So, while the industry has demonstrated its resilience and ability to adapt to new vehicle technology over the years, adapting takes time, and today’s environment means these repairs may cost more.”A sharp increase in motor vehicle fatalities occurred in 2020 and 2021 in the U.S., highlighting the need for new directives to improve vehicle safety.An estimated 20,160 people died in motor vehicle traffic crashes in the first six months of 2021, according to the NHTSA---an increase of 18.4% from the first six months of 2020, and the highest number of fatalities during the first half in 15 years, based on this year’s Crash Course.The fatality rate per 100 million vehicle miles traveled increased to 1.34 for the first six months of 2021, versus 1.28 for the first six months of 2020 and 1.07 during the same period in 2019.Fatal accidents either involving just one vehicle, speeding, illegal substances or failure to wear a seat belt rose disproportionately---underscoring how more drivers are more reckless than ever before. Some of those states with the highest fatality rate per 100 million vehicle miles traveled in 2019 are also those states experiencing the most growth in population.What caused this lack of inventory in 2021?“Extreme weather and cyber security were not the only challenges in 2021 that forced people and businesses to evaluate business models,” Gotsch wrote. “Many industries like the automotive industry had moved to a just-in-time inventory system prior to the pandemic---an approach that was sorely tested over the last year as consumer demand increased much faster than anyone had planned."Inventories had been drawn down from plants being closed at the outset of COVID, and then operating at lower levels of production while trying to balance employee safety and production demand," she continued. "As industries scrambled to meet demand, they met the same challenges: Higher raw material prices, higher transportation costs from higher wages and fuel prices, record spot container shipping rates (14 times higher now than during the same period in 2019), more money and time to unload goods at shipping ports, and shortage of employees on site."In the P&C insurance and automotive sector, dealers, OEMs and aftermarket parts sellers have been operating with lower parts inventories, based on numbers outlined in the report.“Demand for parts has rebounded faster than many of the parts manufacturers and distributors expected, leading to an increase of 'out of stock' from aftermarket or 'backorder' scenarios for OEM parts," Gotsch said. "Even when parts are available, they may be stuck overseas where the issue is getting the parts from the warehouse to the ports, onto the ship and then unloaded and delivered to the U.S.”Parts delays and challenges finding qualified technicians are the two primary reasons repairers have seen their throughput of repairs and productivity fall and repair times grow. CRASH Network in Q4 2021 reported 96% of shops surveyed were experiencing delays, and the national average scheduling backlog reached 3.4 weeks, versus the pre-pandemic Q4 average backlog of only 1.7 weeks.Shops are focused more than ever on blueprinting the repair to identify parts needing replacement and delaying the start of the repair until all parts have arrived on site. This is leading to delays in the average days from estimate completion to vehicle in for both driveable and non-driveable DRP repairs.In conclusion, supply chain disruptions, extreme weather, cyber threats and labor shortages are disrupting historical trends, and have also made pricing and reserving for insurance much harder.Fewer commuters mean less traffic and fewer accidents.“Nearly two years in from the early shelter-at-home orders and a sizable share of the working population in the U.S. is still working remote at least one day per week,” the report said. “Many companies have postponed plans to bring employees back to the office numerous times, even in a hybrid model. Research from the Federal Reserve Bank of Atlanta, Stanford and University of Chicago suggests nearly 40% of U.S. jobs can be done at home, and office occupation levels tracked by Kastle Systems continue to stay well below 50% across their 10-city average.”With many vehicles traveling at faster speeds on less congested roads during the pandemic, vehicles in accidents were seeing higher Delta-v’s, with greater damage to both the vehicle and its occupants. Delta-v is a measure of a collision’s severity or force. Higher forces in an accident increase not only the damage to a vehicle but also the likelihood for occupant injury and more severe injuries.The professional disciplines of accident reconstruction and injury causation have clearly established axioms. All other factors being equal, the following are true: increasing the severity of an impact, in terms of impact force, increases the amount of damage to a vehicle, and increasing the severity of an impact, also in terms of impact force, increases the risk of injury to the vehicle’s occupants.According to a survey by Workplace.com, 37% of U.S. employees will be working remotely in 2022, according to Gotsch’s data, with between 29% to 39% of the time spent working in the U.S. possibly done remotely, with 22% of employees able to work remotely three to five days per week without affecting productivity.With potentially fewer people on the road during rush hour, congestion levels may remain lower, and some of the auto claim trends experienced during the pandemic may become more permanent. Overall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush-hour trips, less congestion in urban areas and freer movement of remaining traffic.This is important because the variable shown to be most highly correlated to vehicle accident frequency is a large number of vehicles on the same road at the same time---i.e., congestion typical of morning and evening rush hour traffic.So, with miles driven recovering, but fewer during historic peak rush hour times, does automotive claims data suggest different driving patterns will continue in 2022 and beyond? Overall claim counts including comprehensive losses were up 9.6% in 2021 versus 2020, while non-comprehensive losses were up 10.2%.The acceleration of repair costs is always a major issue for body shops nationwide. Gotsch’s report said in 2021, the industry experienced a much larger increase in repairable claim costs than in prior years. The average total cost of repairs overall for all repairable appraisals was $3,708, up 8% from 2020 and up 14% from 2019.Growth in the average number of parts replaced per claim as well as more labor hours per claim largely account for the rise in repair costs. Increasing vehicle complexity---both in terms of the materials used in the construction of the vehicles, as well as an increased number of standard options---are helping to lift costs.The distribution of repair cost dollars has changed little over the last 20+ years, the timeframe in which CCC tracked this information. In 2021, the increase in both the share of overall dollars spent on replacement parts and sublet/miscellaneous operations continued. The average price paid per replacement part had historically experienced only moderate increases at an aggregate level. However, supply chain issues in 2021 drove prices up sharply.At the close of 2021, the industry’s share of replacement part dollars was split at 64.4% OEM versus 35.6% non-OEM. Between 2001 and 2021, the average number of replacement parts per non-comprehensive appraisals increased from 5.1 parts to 9.1 parts for driveable vehicles; from 18 parts to 22.3 parts for non-driveable vehicles; and from 8.0 parts to 12.1 parts for the combined driveable and non-driveable claims.

Automakers: Collision Repairers Must Ensure ADAS Calibration Procedures Are Followed

The importance of proper ADAS calibrations was a key focus as the Society of Collision Repair Specialists (SCRS) brought collision repairers and automakers together at an event in Las Vegas during the SEMA Show.Scott Kaboos, assistant manager of collision repair training and technology for American Honda, told those attending the OEM Collision Repair Technology Summit that automakers call for many calibrations to be done on a level floor with good reason.“We did a little test,” Kaboos said, noting Honda’s service information says there can be no more than 1 degree of pitch or slope to the floor when performing calibrations. Traveling around to a lot of our dealerships, we found that most of their floors do not meet that requirement. So we started asking ourselves: How important is this? Is this really detrimental?”Kaboos said the Honda training center in Illinois drove a new Civic at the NHTSA target used to test emergency auto-braking, and the system worked 10 times in a row, stopping the vehicle three or four feet from the target as designed.“So then we took that same car and put the rear wheels in our drain in our wash bay at our training center,” Kaboos said. “We calculated the slope on that, and found that the car was sitting at a 1.6 degree incline. We re-aimed the radar, using the factory specifications and tools. When we were done, the scan tool said aiming was complete. There were no codes. We test drove the car around the block. It gave us no indication there was anything wrong with the car. There were no lights on the dash.”But then the vehicle was driven at the same NHTSA target.“We had very different results,” Kaboos said. “It honestly blew through that target at 20 miles an hour like it wasn’t even there. The light on the dash didn’t blink. It didn’t beep at us. It just punted that target. That was a big eye-opener to us on the training side as to how important that one little line in the service information is: do this on a flat floor.”Kaboos said the other noted requirements---proper air in the tires, a full tank of gas---are also important.“Anything that changes the ride height or ride angle of the car is going to throw off all the geometry,” he said. “You’ve got to pay attention to all of that.”Subaru of America’s Ted Hicks said during the same SCRS session that complete repair of the underlying metal where an ADAS camera or radar is attached is also critical.“I asked a panel of technicians in Dallas: what’s the single biggest problem you’re having with calibrations of blind-spot monitoring radar units and the EyeSight cameras that come from body shops after a repair,” said Hicks, a regional technical training manager for the automaker. “They said that the panel that the camera or unit mounts to has got to be exactly correct. If the sheet metal behind it is bent, the radar unit or camera will never point in the right direction.”One problem: that metal is often behind trim or covered by the bumper cover, so some shops may not repair it.“Nobody cares what the sheet metal looks like, right,” Hicks said. “It can be wrinkly as all get-out and nobody’s going to care because the bumper cover is going to cover it or the EyeSight camera is going to cover it. I’m here to tell you: It matters. Please find the reference points in the service information.”Kaboos said he also has some concerns that shops often aren’t doing needed calibrations.He estimated between 5% and 10% of Honda’s certified collision centers are doing their own ADAS calibrations in-house, while some use a mobile service or a stand-alone calibration center in their market.“But still, the majority are subletting to the dealers,” Kaboos said. “I’m not going to make a judgment either way, as long as you’re getting it done properly.”He said CCC Intelligent Solutions pulled final repair appraisals for Honda vehicles over the course of a year that “had an event that would have required a calibration of one of these systems.”Of those, only 20% listed a calibration.“Eighty percent of the cars that were in accidents that needed to have a calibration did not get one,” Kaboos said. “At least it wasn’t on the estimate. So unless they did it for free, and they didn’t put it on the estimate---highly unlikely, right---it didn’t get done. That scares me.”Also during the session, Taylor Jozwiak, collision R&D workshop manager for Rivian, talked about how that new company produces collision repair procedures for its vehicles. Jozwiak said his “internal body shop” in California, which includes body and paint technicians and an “estimating specialist,” works closely with the Rivian service engineering team, “which creates our repair procedures in CAD.”“As we all know, CAD is great from an engineering standpoint, but some things get lost in translation when transferred over into reality," Jozwiak said. “So that’s where my team comes in. We take the repair procedures and validate them on bodies in white, looking for accuracy, quality of repair and ultimately safety. If we find any discrepancies or things that should change, we provide that feedback to our engineering team, and they make the necessary adjustments to repair procedures. At the end of the day, we want to make sure the people out in the field, the people in your shops, are getting high quality repair information.”The process also involves tracking repair times.“We try to replicate what the technicians are using in shops---the tooling, the equipment,” Jozwiak said. “We use all the same stuff as a traditional body shop would. We collect those times, and that helps us publish times in the estimating systems.”

Day Job/Night Job: Painter/Technical Director Creates Amazing Art, Island-Style

I have been telling people for decades that car refinishers are truly artists, and every time I see a beautiful car at SEMA or on YouTube or social media, it reinforces my beliefs.Great painters continually refine their skills and techniques, and many of them display their creativity and passion through other mediums that often shine brighter than painting vehicles.In this story, a talented car painter created a side business that carves and paints tiki statues, as well as masks, furniture and skateboard decks, just to name a few.Painter and Technical Director Todd Stogdell, 52, entered the collision repair industry three decades ago, when he was hired at an auto body shop in California as a helper. Within 10 years, he had moved up the ladder to become a production manager, and then decided to relocate to Hawaii.Today, Stogdell works for Island Concepts, a paint jobber in Oahu that is the exclusive paint distributor for AkzoNobel in Hawaii. The company serves many of the 200-plus shops on the island, with product support and ongoing training.He joined the company as its technical director back in 2012, where he helps collision repairers with things such as product inventory control, technical support, KPIs, work in progress (WIP) and training focused on OEM procedures.Island Concepts recently established a training room as well as a storage area to house the products they provide to collision repair facilities. In addition, there is a separate area where the company has plans to set up a spray booth and/or prep station for hands-on training.In the past, much of the instruction on the island was conducted by Honolulu Community College as part of its auto body repair and painting program. However, the program closed in the summer of 2021 due to a lack of enrollment because of the pandemic and travel restrictions in Hawaii.With the addition of the new training center, Stogdell said Hawaiian technicians won’t have to necessarily go to the mainland to learn new skills anymore.“Our new facility will enable us to hold classes and offer hands-on skills training,” Stogdell said. “Two years ago, I traveled to New York to be certified as an I-CAR instructor in Fusor’s product line, teaching metal panel bonding, structural adhesives, seam sealing, plastic repair, fiberglass and composite repairs, so we can feature I-CAR classes now, which is great.”To get started in the world of tiki figures, Stogdell put out a call for tikis on Craigslist and through the Hawaiian grapevine, and got lucky with a few beauties almost immediately.“I’ve always liked tikis and initially I got existing ones to paint and recondition,” he said. “I am always looking for ones that are a little weathered. I could see early on I can get really creative with these and use my painting skills to make them look awesome. In some cases, I even surprise myself when I see the finished product.”As his interest in tikis grew, Stogdell yearned to learn more about the process and reached out to some of the finest carvers on Oahu.“I met Tonu and Soni at Ohana Island Creations and we have become friends,” he said. “They wanted me to paint a large wooden sailfish for them and of course, I said yes. When it was finished, they wanted to pay me and I said just teach me how to carve and that will be my payment.”The history of tiki culture dates back to ancient Polynesia. Such carvings were first discovered in Polynesia, and tiki carvings are said to represent a Polynesian god. They're an integral part of South Pacific mythology, culture and history.Tiki statues were carved to represent the image of four gods as an embodiment of each of their mana, or power. With well-formed tikis in their possession, people could attain protection from harm, strengthen their power in times of war and be blessed with successful crops.Kane is the god of sunlight and natural life; Ku is the god of war; Lono is the god of peace, winds, rain, sports and fertility; Kanaloa is the god of the ocean. Stogdell appreciates their role on the islands and loves finding out as much as he can about the history behind them and their cultural significance.“Tikis are special here and people look at them as their protectors,” he said. “I love the tradition and the heritage behind every tiki and enjoy the stories behind them. I have quite a collection now and feel connected to them in many ways.”Once Tonu at Ohana Island Creations showed Stogdell how to carve a tiki, he was on his way and excited to create his own from scratch.“Tonu is a fourth-generation wood carver and is a teaching artist of fine art at BYU-Hawaii, so I couldn’t have had a better teacher," Stogdell said. "The first thing I do when I get a piece of wood is use the chainsaw to do the basic shaping and create a rough version. Then I use a chisel and smaller knives to do the fine work, followed by sanding. And then finally I paint them and hit them with the clearcoat.”Stogdell is now using monkeypod wood for many of his creations and is enamored with the results.This is a great caption. This is a great caption. This is a great caption. This is a great caption."Carvers want to use Albesia wood or palm, but I really like monkeypod wood,” he said. “You can find monkeypod everywhere here and it’s perfect for tikis. It’s dark inside and lighter on the outside, so if you can integrate that into the design, it gives the piece more depth and definition.”Creating a buzz and garnering great reviews for his tikis and other items, Stogdell has enjoyed every step of his journey and is always looking for more challenges.“When people say nice things on Instagram (@island_kustom_concepts) about my tikis, it’s so satisfying,” he said. “Doing the pieces is fun and the accolades are really fulfilling.”

From the Desk of Mike Anderson: Your Auto Body Shop Needs to Provide Consumers ‘Social Proof’ You’re Their Best Choice

When I was in Chicago recently, I had an opportunity to go to lunch with Nick Schoolcraft and Tina Biancalana from Phoenix Solutions Group, which offers marketing and strategic solutions for collision repair businesses.One of the things they shared with me was the term “social proof.” Here’s what that is, and what it should mean to you and your business.First, a definition. One source says “social proof” is a term coined back in 1984 by author Robert Cialdini in his book, “Influence.”“This phenomenon is also called ‘informational social influence,’ and essentially it's the idea that people copy the actions of others in an attempt to emulate behavior in certain situations,” the definition states.But what does that mean in our industry? Let me preface this by saying I in no way am claiming to be an expert on “social proof.” But as I did some research into it, I realized it fits with one of my key messages for this year: Change the way you compete. By understanding social proof, I think you can compete in a new way to gain market share.That’s because consumers today have a “trust but verify” mentality. So just because an insurance company, automaker or dealership says, “This is a body shop we recommend,” that consumer is still going to seek out “social proof,” evidence that you can be trusted and that the referral to you is a good one.So what can be used as “social proof”? Certainly, if a customer can see you’re engaged with your customers through social media, that offers them some proof you’re creating customers who feel good about their experience with your business. So "likes," "shares" and comments on your social media feeds is good “social proof.”Then there’s “stamps,” things like accreditations and certifications. Is it easy for customers to find evidence of your training and certifications with clear explanations of what that means to them? Just saying your shop has earned I-CAR Gold Class Professional status isn’t enough: They need to know how and why that sets you apart.Are you providing them links to where they can see the OEMs really are saying you are qualified and certified to repair their brand of vehicle?“Social proof” also includes customer-generated content, like Google or Carwise reviews, that help potential customers follow the “wisdom of the crowd.” When I had my shops, I kept a list of Audi, BMW and Porsche owners whose vehicles we’d repaired and who gave us permission to share their contact information if someone wanted to speak with a “reference.” A lot of that type of social proof can now be done online through reviews and car club blogs, etc.If you’re not convinced “social proof” is important in our industry, spend a couple minutes visiting a few websites. State Farm’s shop locator, for example, now includes customer reviews of the shops listed. Nissan’s certified shop locator now includes customer reviews of certified shops. Something I haven’t heard talked about much is CCC’s consumer-facing website, Carwise, now allows consumers to search for shops based on OEM certifications---more “social proof.”I know many shops are so busy they may not be thinking as much about their marketing right now as they should. (Check out my column on “Pigs get fat and hogs get slaughtered.”) But you need to market when you’re busy so you stay busy even when other shops are not.And as an industry, we need to understand the way customers think today. They are out there looking for evidence you can be trusted. Just saying it isn’t enough. You need to provide them with “social proof.”

From the Desk of Mike Anderson: Don’t Let Higher Sales Take Your Eye Off the Ball

There’s an expression I’ve been thinking about in relation to the collision repair industry: “Pigs get fat and hogs get slaughtered.”As it applies to business, I think it means if you end up being greedy or taking the good times for granted, it’s going to catch up with you.It reminds me of another expression I use a lot: “Lots of sales cover lots of sins.” You can substitute “mistakes” for the word “sins.” I hear from a lot of body shops about how much their sales are up, sometimes to record levels, and I’m concerned a false sense of security can settle in.It can be easy to take your eye off the ball when work is plentiful.Let’s start with the higher sales number. At least some portion of that is likely attributable to more parts per repair order. CCC Intelligent Solutions reported there were almost 12 parts per claim on average last year, a number that has been climbing since 2011, and especially in more recent years. I’ve seen some other statistics that suggest there’s anywhere between seven and nine more parts per repair now.Add to that the increased price of those parts. Again, CCC data shows parts prices increased 5% in the first quarter of this year alone, after a 7.4% overall increase last year. I’ve seen other statistics showing some parts prices have gone up between 18% and 23%, depending on the type of part.So if there are more parts per repair order, and the prices for those parts have gone up, then of course your sales should be up. But remember, as a repair order includes more parts and less labor, your overall gross profit as a percentage starts to decline.I’m not saying that’s bad or good. All I’m saying is looking at just your increased sales may be giving you that false sense of security.Remember the start of the pandemic, when work temporarily stopped coming to the door? So many shop owners and managers told me during that time they realized they needed to get back to basics, in terms of making sure SOPs were being followed, focusing on selling and capture rate, and offering great customer service.That’s what I’m suggesting to you here, that your increased sales may have led you to stop keeping your eye on the ball. Maybe your estimate quality isn’t as good as it should be, but the higher parts dollars are masking that. Are you continuing to watch your profit margins on labor, parts, materials, sublet, etc.?Is the backlog of work leading to any customer service “sins”? It can be easy to get complacent when you know if one customer gets mad at you, you have 20 more lined up at the door. But you still need to care about that customer not going somewhere else. Make sure your customer service isn’t slipping.Maybe your outstanding parts credits are stacking up. Maybe your receivables have started to slip. Maybe you’re not closing out ROs in a timely manner. Are you still watching your efficiencies? There are a lot of things to still make sure you’re keeping an eye on.I’m not an economist. I don’t know what the future holds. But in every recession, I’ve seen shops wish they had stuck to the basics. Take some time right now to make sure lots of sales are not masking a lot of sins in your business, and that you’re not going to suffer the fate of the hogs.

The Best Body Shops’ Tips: How to Improve Body Shop Profit Using Sensible Goals: 'The Power of One’

When John Shoemaker asks collision repair shops across the country about their financial goals, he is often told, “I’m going to increase company sales 10%.”When he asks how, they instinctively say, “By doing more repairs.”The business development manager for BASF Automotive Refinish Coatings North America said if you look at an average shop with $2.4 million in annual sales, a 10% increase would equate to $240,000 annually, or $20,000 per month.“Using an average repair of $2,600 as an example, the goal would require around eight more repairs per month,” said Shoemaker. “That’s reasonable, but is it sensible?”Shoemaker said that what is sensible is making more money on the repairs the shop is already doing. During a recent interview with Autobody News, he shared tips on how a collision repair facility can increase profits sensibly by making small incremental improvements. Much of this centers around changing a sale or cost by about 1%, which he refers to as “The Power of One.” Although it’s a small number, he said it can make a big difference to a business in terms of profit.Six key performance indicators to help overall profitability: Sales per RO (repair order) Shoemaker often recommends that shops consider raising each RO by 1%.“If an average RO is $2,600 and you increase that by 1 percent, it would raise the average to $2,626 or $26,” he explained. When you multiply $26 by an average of 20 repairs per week, it equates to $520 in weekly growth. Earning an extra $520 each week for 52 weeks will add up to an additional $27,040 in profit.Effective Labor RateA body shop’s hourly rate is not necessarily its effective labor rate. Shoemaker said the effective labor rate is what a shop is actually earning. Although body, frame and mechanical work generally all have different labor rates, Shoemaker said often times shops bill insurance companies the body labor rate and don’t charge frame or mechanical labor. He advises shops to charge for the particular skill being used based on the education and training the particular individual has received.“You need to make sure that you are charging your frame rate for your frame work, your mechanical rate for your mechanical labor and not including everything in body; that’s how you increase your effective labor rate,” he said.In addition, he said by increasing your effective labor rate by just $1, a shop can improve its annual revenue by $31,200 based on an average of 30 hours billed on a $2,600 RO.Effective Labor CostThe effective labor cost---the hourly rate paid to technicians---works hand-in-hand with a facility’s effective labor rate. Shoemaker encourages shops to bring in lower-cost technicians to focus on the less technical jobs---for example, bumper repair.“There is an opportunity to make more profit on those smaller jobs, which is about 45% of a shop’s business,” he said. “If they can make more money on 45% of their business by using a lower-level and lower-paid technician to do these smaller repairs, that’s where they change their effective labor cost.” Based on an average of 30 hours per RO, he said reducing the effective labor cost by $1 can increase annual profits by $31,200.Paint Hours per ROIn regard to paint hours, Shoemaker said shops can often miss little things on estimates such as blending a gas filler door when repairing a quarter panel, refinishing a tail lamp pocket when replacing a rear body panel or rocker panel flanges to correct frame clamp damage. He said that currently, the average paint hour per RO is 7.8.“If we raise that by one to 8.8, over the year you can bring in an annual sales increase of nearly $73,000,” he said.Paint and Material Sales Per Paint HourShops that increase their paint materials sales per paint hour by $1 can also make a significant difference in their annual profits. When insurance companies cap materials, Shoemaker said it can drive down the actual rate. Using a common industry average of $27.63, he said shops can boost their annual sales by $8,100 by raising their paint and material sales per paint hour by $1.Paint and Material Cost per Paint HourIn terms of the amount of paint materials used to do a particular job, Shoemaker often recommends that shops use a little less product. He has found that typically, there is about an ounce of paint left over after finishing the job.“If you are mixing less product, your cost for that job is going to be reduced even though you are still getting paid the same amount because you are eliminating the waste,” he explained.He said it’s understandable that painters don’t want to be short on materials and go into the paint booth with less paint than they need to do the job. Therefore, it’s important to take into account work habits, pilferage and waste. Based on a benchmark of $13 to $14, reducing the paint and material cost per paint hour by $1 would increase annual profits by $8,112.In addition to these six KPIs, Shoemaker said the same concept of “The Power of One” can be applied to a business’s gross profit numbers, including total labor, parts, paint and materials, and total gross profit.For example, using 62 percent as a benchmark for total labor gross profit, Shoemaker said it would equate to $812,448 in gross profit using $1,310,400 as an average shop’s labor sales.“Employing ‘The Power of One’ and increasing the percentage by 1 to 63 would increase annual profits by $13,104,” he said.In terms of parts gross profit, using a benchmark of 25 percent would equate to $270,000 using $1,080,000 as an average for annual part sales. Shoemaker said that by increasing the percentage by 1 to 26 would bring an additional profit of $10,800.“I call it organic growth,” said Shoemaker. Rather than bringing in more cars to increase a shop’s sales numbers, he said shops can increase profits with the current work they have.“By looking at the small number rather than the big number, you can very steadily and sensibly grow your business,” he said.This article was based on a presentation by John Shoemaker, business development manager for BASF Automotive Refinish Coatings. For more information, email john.a.shoemaker@basf.com.

Kia Engine Recall Includes Extended Warranty

A Kia engine recall has been ordered for more than 294,000 of these vehicles equipped with Theta II and Nu engines at risk of fires. 2012-2013 Kia Sorento 2012-2015 Kia Forte 2012-2015 Kia Forte Koup 2011-2013 Kia Optima Hybrid 2014-2015 Kia Soul 2012 Kia SportageAlthough the Kia engine recall follows multiple recalls and other actions the past few years, Kia allegedly still doesn't know what is causing the fires."An engine compartment fire can occur while driving for many reasons and depending on the severity of the fire, the identification of the cause can be untraceable. While a low percentage of the subject vehicles have experienced an engine compartment fire, a cause resulting from a manufacturing or design defect has not been identified," Kia said in the engine recall.Without a root cause of the fires, a vehicle owner may notice various symptoms such as engine noise, illumination of the check engine warning light, illumination of the low oil warning light, fuel or burning odors, smoke or oil leaks.The Center for Auto Safety petitioned the National Highway Traffic Safety Administration (NHTSA) to investigate why Kia vehicles were catching fire while the vehicles were parked.NHTSA opened a formal investigation into non-crash fires in 2011-2014 Kia Optimas, 2011-2014 Kia Sorentos and 2010-2015 Kia Souls equipped with Theta II, Lambda, Gamma and Nu engines.Kia said its data indicated there were no fire-related defect trends, but the automaker would continue to monitor the field for problems.In July, NHTSA requested that Kia issue recalls on certain models with higher rates of fires, but Kia still couldn't find any design or manufacturing defects that caused the fires.Kia engine Recall Includes Extended WarrantyKia decided to issue this recall "as a preventative measure to mitigate any potential fire risk" at the same time Hyundai recalled vehicles equipped with Gamma, Nu and Theta II engines.Kia dealerships will inspect the engine compartments for evidence of fuel or oil leaks and perform tests on the engines. Repairs may be needed and it's possible the engines will be replaced.The Kia engine recall also includes a knock sensor software update which will allegedly prevent engine damage from the connecting rod bearings.Additionally, Kia will provide warranty coverage for 15 years/150,000 miles for engine long block assembly repairs due to connecting rod bearing damage. The warranty coverage will begin once the knock sensor software update has been completed.The Kia engine recall is expected to begin Jan. 27, 2021. Concerned owners with questions may contact Kia at 800-333-4542 and ask about recall number SC200.We thank CarComplaints.com for reprint permission.

Lemonade to Use Mitchell’s Claim Solutions for Newest Product

Mitchell, an Enlyte company, recently announced Lemonade, the insurance company powered by artificial intelligence (AI) and social impact, has chosen Mitchell's claims management platform for the insurer’s newest product, Lemonade Car.The company will use Mitchell’s claims workflow, automation and total loss solutions to help streamline and optimize claims handling."At Lemonade, we’ve set out to make the most lovable car insurance available, and part of that is creating the best experience possible,” said a Lemonade spokesperson. “By collaborating with Mitchell and using the company’s comprehensive claims management technology, we’re able to build efficiencies into our product to make it as seamless and easy for our customers to file a claim following an accident, as well as share necessary information with third-parties including auto body shops and medical facilities."“We’re extremely proud that Lemonade---a top-rated insurer with a focus on fast, efficient claims resolution---has selected our technology to support their entry into the U.S. auto insurance market,” said Jack Rozint, senior vice president, repair sales, Mitchell Auto Physical Damage division. “Their decision to do so validates Mitchell’s leadership position in claims processing technology.”“We’re honored to support Lemonade,” said Debbie Day, executive vice president and general manager of Mitchell’s Auto Physical Damage division. “At Mitchell, we continue to invest in the development of innovative, cloud-based solutions that are designed to allow our customers to work more efficiently while meeting consumer expectations for an automated, digital claims experience. Our auto physical damage and casualty solutions help carriers like Lemonade scale quickly as they bring best-in-class offerings to market.”Launched in November 2021, Lemonade Car uses telematics to measure how much and how safe people drive. It provides 24/7 on-location roadside assistance, real-time crash detection and dispatch of emergency services, and offers perks for safe and environmentally conscious customers. These include discounts for low-mileage drivers and those who own electric and hybrid vehicles.After being introduced in Illinois and then expanding to Tennessee and Ohio, plans are in place to continue rolling out Lemonade Car across the country.Mitchell, a leading technology and information provider for the property & casualty (P&C) claims and collision repair industries, will support Lemonade in delivering an efficient, digital claims experience for consumers purchasing auto policies.Lemonade is a full-stack insurance carrier built to provide the best, most delightful and most transparent insurance experience in the world, according to a company spokesperson. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback campaign.Rozint explained Mitchell’s solutions provide Lemonade with the technology needed to streamline key steps in the claims process, including loss reporting and damage appraisal.“Mitchell is committed to helping our customers---both automotive insurers and collision repairers---simplify and accelerate claims management,” said Rozint. “Lemonade presented an excellent opportunity to apply our industry-leading solutions with a partner that is poised for rapid growth.”Through the collaboration, Rozint said Mitchell can assist the insurer with settling claims seamlessly while delivering an exceptional customer experience.“The integration of Mitchell’s solutions with Lemonade’s existing technology stack will support an automated, digital claims process---from first notice of loss (FNOL) to settlement,” he said.Lemonade is also leveraging Mitchell’s auto casualty injury claims processing solutions to automate both first-party auto and third-party liability claims.“Automating these functions is intended to align with the insurer’s goal for Lemonade Car: to use technology to handle emergencies and settle claims seamlessly, providing the best possible experience for customers,” according to a press release.“Lemonade is advancing the auto insurance market with sophisticated technology and Mitchell, being an auto casualty technology leader, is happy to support those goals with our specialized casualty technology and service solutions,” said Norman Tyrrell, vice president of product management, Mitchell Casualty Solutions Group. “Lemonade will be leveraging Mitchell’s DecisionPoint Medical Bill Processing software as well as a number of our Technology Enabled Solutions.”Several years ago, Mitchell decided to rebuild its core platform around key concepts that included an open, cloud-based architecture, and support for proper and safe repairs.“With each new customer, we believe that the market is validating this direction,” said Rozint.For more information about Lemonade Car, visit www.lemonade.com/car.For property casualty and collision repair updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.

From the Desk of Mike Anderson: Collision Repair Shops Play Vital Role in Helping Reduce Vehicle-Related Deaths

I read a sobering article in The Washington Post recently that I think offers some insights into where vehicle technology is likely headed.The article featured an interview with Jeffrey Michael, who spent three decades at the National Highway Traffic Safety Administration (NHTSA), and is now at the Johns Hopkins Center for Injury Research and Policy.He’s a car guy. The article said when he’s home, he likes to tinker on the 1987 Porsche 911 he bought as a fixer-upper. While he was with NHTSA, he worked on issues related to seat belts, child restraints, drunken driving and emergency medical services.But the article also said this:“Michael saw the ability of federal programs to influence safety and cites a gradual reduction in road deaths over 50 years. But in an interview with The Washington Post---days after new NHTSA figures showed fatalities hitting a 16-year high---Michael pointed to the nation’s failure and potential fixes.”Make sure you read that again. Roadway fatalities have reached a 16-year high.You have to believe NHTSA and other regulators are going to place an even greater emphasis on vehicle and roadway safety. You have to believe the automakers are going to be pushing forward on getting more and better ADAS and telematics features into vehicles. That’s going to impact the vehicles we have coming into shops.Michael also noted in the interview, “To improve things, we’re going to need to individually make concessions about convenience, about driving a little slower, about taking a little more care, about personal responsibility, of using our seat belts, of driving at or below the speed limit, of driving responsibly, certainly driving without impairment, without fatigue, without distraction.”The “using our seat belts” portion of that quote caught my eye. Our industry has a vital obligation to make sure those seat belts have been inspected after a vehicle has been in an accident. Every automaker has very specific requirements about this.Even when General Motors revamped its post-collision vehicle inspection requirements, for example, its stance on seat belts did not change. GM wants “every seat belt of every [GM] vehicle inspected every time” a vehicle is in for repairs, “regardless of the [crash] severity level or what’s being done” to the vehicle, said John Eck, collision manager for GM.We’ve been asking about seat belt inspections in our “Who Pays for What?” surveys dating back to 2016. On the surface, the news is good. Back in 2016, close to two-thirds of shops said they’d never billed for the labor involved in inspecting seat belts, and among those who had, fewer than one in four said they were paid for that work by the eight largest national insurers “always” or “most of the time.”In the seven years since, the percentage of shops not billing for the work has fallen, and the percentage being paid regularly has grown.But looking at the numbers still keeps me awake at night. As of this year’s survey, there were still 28% of shops---more than one in four---that acknowledged never having billed for seat belt inspections. I have to believe many of those shops aren’t doing this critical work, perhaps because they’re not researching and following the OEM procedures.And in the seven years we’ve asked, never have more than two in five shops billing for this work said the insurers regularly pay for it. How can the insurance industry deny payment for this needed step? And though shops are morally---if not otherwise---obligated to do it even if they’re not paid for it, are insurer payment practices contributing to it not being done on every single vehicle?Ladies and gentlemen, it often doesn’t require any more than looking at the vehicle owner’s manual to document the seat belt inspection requirement. In the resources section of the “Who Pays” body labor report, we point to an excellent list of links to vehicle owner's manuals, put together by the Database Enhancement Gateway (DEG).You can take the current “Who Pays for What” survey during July here.In some cases, in addition to a visual inspection, the OEM procedure may require the use of a diagnostic scan tool to check the pre-tensioners. On some Honda and Acura vehicles, for example, a deployed pre-tensioner does not trigger a diagnostic trouble code, so other “live data” from the scan must be checked. In these cases, it’s important to know I’ve read of instances where shops have found their aftermarket scan tool didn’t catch blown pre-tensioners an OEM scan did.I encourage you to check the NHTSA website for some sobering statistics about highway deaths, and some tools you can use to help educate your customers.But we also all need to make sure we’re not contributing to the problem, by repairing every vehicle fully and correctly, including the seat belt and other OEM safety inspections.

EVs, ADAS Calibrations, Future of DRPs Discussed at Annual CIECA Conference

CIECA’s annual conference in St. Louis in September included presentations on new electric vehicles, ADAS calibration trends and what may lie ahead in terms of direct repair programs.Greg Peeters of Car ADAS Solutions predicted it won’t be long before the majority of vehicles repaired by the collision industry will require some type of system calibration.“I think in a year from now the landscape looks very different from this being sort of a minority type thing to the typical,” Peeters said of calibrations. “I think in a year from now, it’s over 50% of repairs that require a calibration, and it becomes less and less frequent that we don’t have one.”Peeters’ company operates stand-alone calibration centers and assists those looking to launch one. He said he’s often asked whether vehicles will eventually self-calibrate.“I can tell you on even the newest technology, they don’t,” Peeters said. “The average age vehicle in a body shop right now is 6.2 years. So we’ve got quite a runway before we’re going to see self-calibrating cars. I will tell you what we’re also seeing in the field is sensor degradation. You take, for instance, a camera lens on the front grill or a mirror. It’s experiencing a whole lot of car washes, sunlight, sand and gravel, and it no longer sees the way it once saw. I think diagnosing and replacing failing sensors is right around the corner.”Also at the conference, Bill Brower, vice president of industry relations for Solera, said he foresees “a pretty major redesign” of direct repair programs as the next big change coming to the industry.“The days of [the customer] being introduced to the shop and going over for an initial estimate, and then going back over to take the car in for repairs and being taken by the body shop to the rental car company, I think that whole process becomes digital,” Brower said. “The customer is very comfortable taking the pictures. So I think the future is the DRP shop receiving a package of photographs, an AI estimate, and they’re going to make a decision at their desk before they call the customer: ‘Do I even need to see this car in advance, or can I digitally schedule the customer in for the repair?’ "Think of the impact that that would have on business if you could take a lot of that front end work away," Brower said. "To me, the biggest next step is really digitalization of direct repair, especially the assignment process.”The two-day CIECA conference also included a panel of automaker representatives discussing electric vehicle repair. Jake Rodenroth of Lucid Motors said anyone in the industry can get some information about his company’s vehicles to give first responders in their market.“I went to our fire department and told them I work for a car company you’ve never heard of, and I’ve got a towing guide and a first responder guide that I would love to share with you,” Rodenroth said. “They were very thankful. If you as a citizen want to do the same in your town, I’m happy to share those two documents. The worst thing for us as a new brand is to have one of our cars in a situation where it could hurt somebody because somebody didn’t know.”One thing unique to the shop certification programs being rolled out by both Lucid and Rivian: A reliance on body shops in the program to handle mechanical work on their vehicles as well.“Since we don’t have a dealer network service model, we require our [certified body] shops to take all the mechanical training,” Rodenroth said, something echoed by Rivian’s Frank Phillips. But he noted the bulk of mechanical work Lucid vehicles need can be done by one of its mobile service providers.“I’m not asking our [network shops] to do brake jobs and tire changes and things like that,” Rodenroth said. “These cars don’t need as many things as an ICE vehicle.”There currently is no database of repair times for electric vehicle manufacturer Rivian’s vehicles, but the automaker has personnel who can help shops with repair planning for Rivian vehicles.“I have a team of folks who will assist our certified shops to make sure they are getting the information they need to get that estimate created,” said Phillips, collision program manager.That group will work with insurers as well as Rivian’s 100-shop network.“I use the analogy: I want to be the pillow between the insurer and the body shop,” Phillips said. “You can call those guys or chat with them online or text them or email them. Any method of communication.”

Technician/Painter Recovering from Severe Burns Recognized During 11th Annual CIF Gala

Members of the collision industry gathered at the 11th Annual Collision Industry Foundation (CIF) Gala in Pittsburgh, PA, on July 20 to show their support for Bryan Miller, an Ohio-based technician and painter recovering from severe burns he suffered from an in-shop fire in September 2021.The fundraising event, held at the Howl at the Moon restaurant, was the first time CIF has hosted its annual gala since the pandemic. The nonprofit organization is committed to assisting those working in the collision repair industry through crises and tragedies.“I’m happy to report we had record attendance,” said Petra Schroeder, “Collisionista” and secretary of CIF. “About 163 individuals from all segments of the industry were present, of which 41.7% were first-time attendees.”Earlier in the year, CIF put out a call to the industry at large for the first time looking for volunteers interested in joining the organization’s committees. The following individuals became part of the gala volunteer committee: Tracy Darrington, Enterprise; Matt Hamerling, Enterprise; Paul Hill, I-CAR; Tom Julius, Car-Part.com; Stacey LaViola; Cherlyn Schultz, Enterprise; Scott Stiber, Enterprise; Ann Swayka, AirPro Diagnostics; and John Webb, TenPointComplete.Gala committee volunteers included, left to right, Stacey LaViola, John Webb, Ann Swayka, Paul Hill, Cherlyn Schultz, Matt Hamerling, Tracy Darrington and Scott Stiber. Not pictured is Tom Julius.“I want to give a big shout-out to those gala committee volunteers,” said Schroeder. “What they did to help us was incredibly valuable and their support was outstanding.”Schroeder said the assistance from the volunteers was instrumental in preparing the gala to help Miller and raise money for others in the industry who might need assistance in the future.“The event provided the opportunity to bring industry individuals together as well as the opportunity for additional fundraising through event ticket sales, raffles and silent auctions,” said CIF President Michael Quinn, president of AirPro Diagnostics. “At the gala, we were able to bring one of our most recent recipients of CIF support, Bryan Miller, to meet with and thank in person many individuals from organizations who provided direct support to him.”During the event, CIF Trustee Jim Ocampo, strategic accounts sales manager at Axalta Coating Systems, presented Miller with a $15,000 check. Approximately 40% of the amount was donated by the industry to a campaign specifically to help Miller, and CIF contributed the remainder.Miller began working in the auto industry in 2016 and has spent time since then as a collision technician/painter. Last September, he was working on a motorcycle at the shop he was employed at, and a fire broke out. When Miller’s body caught on fire, he was trapped in his work area before escaping out of a window. He was transported to a hospital by helicopter.Although he survived, Miller had third-degree burns covering most of his body and multiple surgeries and skin grafts. He said he lives in constant pain and expects it will take at least a year to regain full mobility.Miller, his fiancé, Kassi Nellett, and his cousin, Steve Legg, attended the gala to show their appreciation for the assistance provided by CIF and the industry to help him recover from his injuries and get back to work.“I want to go back to work right now! It’s my passion; I feel blessed to have found a career that’s given me a sense of pride to be able to tell people what I do for a living. I just love everything about my job,” said Miller in an article written by Joel Gausten.For more information about CIF, visit www.collisionindustryfoundation.org.

NABC Programs Enable Auto Body Shops to Help Their Communities

Several years ago, actress Angelina Jolie said everyone should help the world “by doing what they can, where they are and when they can.”She also believes in saving one third, living on one third and giving away one third. If we all lived that way, the world will undoubtedly be a better place.The National Auto Body Council Body® (NABC) has been saving and changing peoples’ lives since its inception 28 years ago. Known as the collision repair industry’s premier philanthropic organization with members that include auto body shops, rental car companies, parts and materials providers, insurance companies, automotive recyclers, towing companies and industry consultants, NABC serves communities across the country with programs that are nationally acclaimed.The NABC has three key initiatives---NABC Recycled Rides®, NABC First Responder Emergency Extrication (F.R.E.E.™) and the NABC Drive Out Distraction program. That effort equates to a 4:1 ROI in dollar value delivered from NABC membership dollars. Members can take advantage of these programs through their NABC membership and receive a complete marketing tool kit to promote each program they implement.President and CEO Bill Garroutte believes in NABC because he has seen the organization in action time and time again.“Our goal is to be as available as possible and to make this as effortless as it can be on behalf of our constituents,” he said. “Giving back to the communities where we all live and work involves a process and we’ve got it down to a science. We’ve worked hard to get better at it over the past 15 years. We have 145 vehicles in process right now around the country with our NABC Recycled Rides program, with a good number of different individual shops or MSOs that are participating in one or more of programs.“All of our initiatives are based around the community and our constituents in the community, by providing them with a product,” Garroutte said. “We sometimes refer internally to it as marketing in a box. Because if you adopted all three of our programs and incorporated them into your existing marketing plan, you've got a pretty robust marketing plan."Years ago, there was an issue with the image of the industry, when Joey Buttafuoco, a former body shop owner, was in the news and not in a good way. There was a group of folks who decided we can do better than this. We have to protect our own image, so that’s how NABC was formed in September of 1994.”Director of Claims, Innovation and Customer Experience Clint Marlowe has seen NABC strengthen relationships between insurance companies, industry vendors and collision repair facilities.“We are dedicated to providing strategic networking opportunities that positively change lives by connecting collision repair shops with their customers and their community and positively influence their image, a value far beyond the membership fees,” he said. “We build partnerships with our philanthropic partners who serve communities across the country and setting them up for success.”Garroutte has seen NABC grow, including more and more collision repairers as active members over the years, he said.“The MSOs make up about 60% of the giftings and independents make up roughly the rest of that on a national basis," Garroutte said. "The interesting part is that the MSOs have adopted our programs into their marketing in a big way. And it is just amazing when we work together when it comes to the giftings. It is really satisfying to see insurance companies and body shops working together to do some amazing things.”In addition, NABC has 11 trade/technical schools involved, donating more than 20 vehicles this year alone.“They make it part of their curriculum, preparing these cars for our NABC Recycled Rides program,” Garroutte said. “They learn the value of giving back, something they can take along when they enter the industry.”While the original vision and mission NABC was to build the image of the collision repair industry as positive, professional, trusted members of the business community, that has expanded to encompass the many organizations that provide financial support, business services and other support for today’s dynamic collision repair industry. The organization is changing the paradigm of how the collision industry works and is viewed.NABC Recycled Rides is celebrating 15 years of providing reliable transportation in 2022. The program works with insurance and rental car companies to provide vehicles to collision repair shops that donate reliable transportation to individuals and service organizations in need.The statistics are impressive, with thousands of lives impacted.Since 2007, through the NABC Recycled Rides program, NABC members have gifted nearly 3,000 vehicles to people in need and delivered nearly $42 million in vehicle value at giftings. This spring, NABC will gift its 3,000th vehicle, with 350 vehicles being given away this year.In 2022, NABC Recycled Rides will present vehicles at a wide range of industry events, including the NORTHEAST Automotive Services Show in New Jersey, the inaugural CCG conference in St. Louis, the URG Conference in New Orleans and the NABC Round Up Pars for Cars Golf Fundraiser presented by Hertz in Oklahoma City. Beginning in May, USAA will present 100 Recycled Rides through the year to celebrate its 100th anniversary.The NABC First Responder Emergency Extrication (F.R.E.E.) program has helped to educate nearly 5,000 first responders on how to extricate from today’s advanced vehicles and saving lives in their communities.The NABC F.R.E.E. program provides advanced education and guidance to help first responders practice cutting techniques on late-model vehicles, addressing high-strength steel and composite materials, multiple airbags, onboard technology and changing vehicle design.Through the program, NABC and its members have helped educate nearly 5,000 first responders on how to extricate from today’s advanced vehicles and saving lives in these communities.At its Oklahoma golf fundraiser, NABC will unveil the NABC F.R.E.E. Demonstration Vehicle Presented by Genesis Rescue Systems. The vehicle was donated by Allstate and repaired by Crash Champions and 417 Dent Pros. The vehicle wrap was provided by 3M, Safelite donated the glass, URG donated replacement parts, All Star Auto Lights provided the headlights and towing was provided by Smith Auto Transfer and HONK for Help.Genesis Rescue Systems will transport the vehicle around Texas, Oklahoma, Kansas, Missouri, Illinois, Arkansas and Louisiana over the next three years as part of an education program for first responders.The NABC Drive Out Distraction program is helping educate drivers and their passengers about reducing the dangers of distracted driving with a national campaign that focuses on eliminating this issue. To achieve this, NABC encourages drivers to prepare for the road trip by downloading directions, checking weather and traffic conditions, setting the radio station and familiarizing themselves with the vehicle’s controls.It also promotes reducing cell phone distractions by setting devices to “do not disturb" and eliminating in-car interruptions by securing pets, buckling in children and reminding passengers not to distract the driver with inappropriate behavior. The NABC Drive Out Distraction program is helping to educate drivers and their passengers about reducing the dangers of distracted driving with a national campaign.The NABC Drive Out Distraction program is available at no cost to all NABC members to use at their locations, rental car counters, retail locations or with their employees. The program materials include custom-branded counter card with tips for setting devices to “do not disturb” and call to action to take the NABC “Drive Out Distraction” challenge.A custom-branded web page on www.NationalAutoBodyCouncil.org with tips for eliminating distracted driving to share via social media is also made available to all members.The organization also recently announced the second annual recipients of the revamped NABC Awards program to formally recognize leadership of and commitment to improving the collision repair industry. Last year, it introduced two new awards in place of the previous ones---the NABC President’s Award and the NABC Changing and Saving Lives Award.The NABC President’s Award is designed to honor the NABC member company that supports the vision of the organization through donation of its time and resources. That award will be presented in the coming weeks.The Changing and Saving Lives Award recognizes the individual in the collision repair industry who has delivered exemplary service in the NABC mission of Changing and Saving Lives Every Day, far beyond their role in the industry.The 2021 award recipient is Josh Byers, general manager of Automotive Color & Supply. He was selected by the NABC Awards Committee via a thorough review of nominations.Byers is highly engaged in his community and is actively involved in changing the lives of young people through his support of the Boys & Girls Club of Fort Wayne, Big Brothers Big Sisters of Northeast Indiana, Junior Achievement of Northern Indiana and the World Baseball Academy. He also is a member of the Indiana Auto Body Association Board of Directors, president of the Refinish Distributors Alliance (RDA) and serves on the advisory board for Ivy Tech’s collision program in Fort Wayne.The NABC Awards committee will donate $250 to WIN (Women’s Industry Network) in his name, which he has offered to match. The committee also will donate $250 to Byer's charity of choice, SkillsUSA.Keeping the ball rolling at NABC is Garroutte and his board’s top priority, he said.“I would say that the momentum that we're gathering is as a result of the support we're getting from our constituents and giving us greater and broader exposure," Garroutte said. "We have established a culture in the last four to five years that has rejuvenated a lot of excitement and activity among our board of 21 volunteers. And then our executive board is made up of six very passionate and committed individuals. We're all playing for the name on the front of the jersey, not the name on the back.”

OEM Roundtable Working to Improve Quality of Collision Repair

Twenty-five years ago, many auto manufacturers found they were experiencing similar non-competitive issues in the industry. George Gilbert from Ford and Rick Sherwood from Campbell & Co. suggested meeting to discuss these issues.The following year, six exploratory meetings were held with numerous OEMs to find out if it would be helpful to form a more formal group and convene regularly.In 1999, the OEM Roundtable was formed. Since then, the group has held quarterly meetings alongside the Collision Industry Conference (CIC).During the April 2022 CIC meeting in Oklahoma City, OK, representatives from the OEM Roundtable shared some of the history and guiding principles of the group. They included, pictured above, left to right,Mark Allen, collision programs and workshop equipment specialist at Audi of America; Dan Ducharme, wholesale parts senior manager for Volkswagen of America; and Devin Wilcox, collision certification manager at Subaru of America.Currently, 13 major member companies are involved in the OEM Roundtable, including Ford, GM, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Nissan, Stellantis, Subaru, Toyota, Volkswagen and Volvo. Many of the representatives are active participants in industry organizations and committees as well as events and panel discussions.Ducharme is the 2022 president of the OEM Roundtable. Prior leaders include: 2013–2014: Paul Massie, Ford 2015–2016: Gary Ledoux, Honda 2017–2019: John Eck, General Motors 2020–2021: Rossana Alvarez, Honda 2021: Mark Zoba, NissanThe group’s mission is to continuously improve the quality of collision repair available to vehicle owners.Allen talked about some of the OEM Roundtable’s frequent topics of discussion, which have included improving access to and use of repair procedures independently developed by some auto manufacturers, bringing awareness to the technician shortage, addressing challenges faced by repairers and parts sellers, as well as researching new industry programs and technologies.In addition, the group discusses industry programs and legislative and legal updates. Allen said the OEM Roundtable operates under strict anti-trust guidelines.“We want to help the participants in our programs do better,” said Allen. “By offering support, we hope to build better success quicker for shops.”Wilcox said some of the guest presenters at the quarterly meetings may include information providers, industry associations, training organizations, service and equipment providers, MSOs, dealers and shop owners, and insurers.“We’re always open-minded to meeting and discussing what programs and offerings could be beneficial to us as a network and an industry,” he said.The group adheres to three guiding principles: The interests of all parties involved in the collision repair process are best protected when vehicle owners are allowed to make informed decisions regarding collision repairs to their vehicles. Active participation by all parties in the collision repair process is necessary if the quality of collision repair available to vehicle owners is to continuously improve. Open discussion among those involved in the collision repair process and reliable sources of collision repair data are paramount if the quality of collision repair is to continuously improve.To support these principles, Allen said OEMs constantly enhance the availability and functionality of repair information developed by each of them.“The information is there to document the file and repair the car the right way,” he said. “Some of us include what the equipment is that the repair procedures were developed with to get the achievable outcome of repairing the car.”The OEM Roundtable and its member companies are involved in the industry in many ways. This includes financial supportand engagement with numerous organizations, such as the Automotive Service Association (ASA), Collision Industry Conference (CIC), Collision Industry Electronic Commerce Association (CIECA), Collision Industry Conference (CIF), Collision Repair Education Foundation (CREF), Inter-Industry Conference on Auto Collision Repair (I-CAR), National Auto Body Council (NABC), Society of Collision Repair Specialists (SCRS) and Women’s Industry Network (WIN).“We want to be available for the industry at these conferences and be accessible,” said Wilcox.In 2008, the roundtable launched the www.OEM1Stop.com website to respond to the industry’s request for easier access to OEM repair procedures and information. Auto manufacturer position statements were added in 2016. By 2021, there were more than 300,000 total visits to the website and more than 120,000 unique visitors that year alone.“The number of visits has jumped over 300% since 2016,” said Wilcox. “Many body shops are referencing the site now on a regular basis.”Another resource available is www.CrashRepairInfo.com, launched in 2014. This website provides direct outreach to customers and guides vehicle owners through the collision repair process with a focus on proper repairs.Ducharme explained individual OEMs work internally with their engineers to determine what needs to be done pre- and post-collision to streamline repair procedures. At the same time, the group is increasing engagement with body shops and insurance partners.“We want to make sure everyone has the knowledge and the ability to keep up with all the latest advanced technologies that, as manufacturers, we’re putting into these vehicles,” said Ducharme. “We’re trying to get feedback from all segments so we can make informed decisions and provide a great experience to our mutual customers.”Looking ahead, the OEM Roundtable hopes to help the industry move forward by increasing collaboration and transparency among all industry segments, providing greater use of tools and continuing to learn from all stakeholders.“As OEMs, we are here to support the industry and make sure vehicles are being taken care of and repaired properly,” said Wilcox.“We’re always looking to make it better,” said Allen. “Let’s become professional and agree that we are going to take a look at these repair procedures, have the conversations with customers and insurance partners, and get the car repaired the right way.”

John Eagle Collision Center Faced Consequences for Not Following OEM Repair Procedures

Matthew and Marcia Seebachan are a Texas couple who, in the fall of 2017, were awarded $42 million by a jury in a lawsuit against a Dallas-area dealership body shop over auto accident injuries they said were exacerbated by faulty prior collision repairs made to their vehicle.Within days of the verdict, the couple filed another lawsuit, alleging State Farm pushed John Eagle Collision Center to make those repairs as they did. They settled that lawsuit in October of 2018; terms of the settlement were not disclosed.In the couple’s lawsuit against the shop, the dealership was found to be 75% responsible, with the driver of the other vehicle in the crash found to be 25% responsible.The case hinged largely on the shop’s failure to follow OEM repair procedures, specifically the use of structural adhesive---rather than welds, as called for by the automaker---to attach a replacement roof to a 2010 Honda Fit after a 2012 hail-related claim.The Seebachans later purchased that vehicle, and argued successfully in their lawsuit against the dealership shop that their injuries in a subsequent accident were more severe because the roof separated and failed to protect them as it would have if Honda repair procedures had been followed.As part of their argument in the lawsuit against State Farm, the couple cited the director of the John Eagle Collision Center who indicated the insurer can “trump” OEM repair procedures based on payment practices.“Well, unfortunately, we’re guided by insurance,” the shop’s director said in a deposition in the original lawsuit. “So…if you brought your car into my shop, the insurance company’s going to dictate…how we’re going to repair your car.”The director was asked if the insurer can trump the OEM procedures.“Yes, they can,” he responded. “By not paying the bill.”A spokesperson for State Farm declined to comment on the settlement; the company had previously said the allegations against the insurer in the lawsuit were “not supported by the facts.”Speaking at industry events in 2017 and 2018 prior to the settlement with State Farm, Texas attorney Todd Tracy, who represented the Seebachans in both lawsuits, said the lawsuit against State Farm would change the dynamics of shop-insurer relationships.“This case is bigger than money," he said. "This case is about industry-wide change.”Beginning in 2019, the Collision Industry Conference (CIC) has had an empty chair on the dais at the quarterly meetings as a reminder to attendees of an important industry constituent not generally represented at the meetings: the consumer. Then-chairman Jeff Peevy implemented the idea in part because of what happened to the Seebachans.“Those families who ride in the cars that our industry repairs should be at the forefront of our thoughts,” Peevy said.Later that year, he invited the Seebachans to speak at CIC.“There’s no telling how many lives you have saved because of your strength and courage and willingness to come here and tell your story,” Peevy told the couple.Marcia Seebachan told the CIC audience she knows many people undergo traumatic experiences without being given an opportunity, as she feels she and Matthew have had, to create some positive outcome from those experiences.“We’re grateful for everyone being willing to sit in this space with us and hear our story, and hope you walk away with it when you make decisions in your practices,” she said. “That’s all we can hope for, is that you’ll remember that.”

‘Who Pays for What?’ Surveys Shed Light on Not-Included Items Auto Body Shops are Charging, Getting Paid For

Trainer and consultant Mike Anderson’s idea wasn’t new, but his implementation of it has had some significant impact for the industry.In 2015, Anderson, of Collision Advice, wanted to resurrect a type of report he remembered finding helpful years earlier when he still owned a pair of auto body shops in Virginia.“For many years when I owned my shops, I looked forward to a report one of the industry publications produced that showed what not-included labor procedures shops were billing for, and which of the largest insurers were paying for those procedures,” Anderson said. “That publication was long gone in 2015, so I decided to take their basic idea and expand on it.”Rather a single survey asking about a couple dozen labor procedures, Anderson worked with industry publication CRASH Network to create four different quarterly surveys that in total would ask about billing and payment practices for about 100 not-included procedures and estimate line items.“I knew if enough people participated, we could accomplish several things,” Anderson said. “Even just taking the surveys would serve as a reminder to those shops about the not-included items they were doing and could potentially be paid for. And the findings would help reassure shops that despite what they might be told, they aren’t ‘the only one’ charging for those items.”Anderson’s first “Who Pays for What?” survey launched in April 2015, and industry interest in the project was immediately clear. More than 980 shops, from all 50 states, participated in that first survey, which focused on not-included refinish labor operations.“I’ve talked to a lot of people who have done surveys in this industry over the decades, and no one has had anywhere close to that level of participation,” Anderson said. “We knew we’d tapped into something shops were hungry for.”That appetite hasn’t diminished. Each survey since has received response from 500 to more than 1,000 shops, and a total of more than 5,000 shops have taken one or more of the quarterly surveys over the years they’ve been conducted.What have been some of the changes the surveys have found---or contributed to---over that time? For many of the procedures asked about in the surveys, a higher percentage of shops say they are seeking payment when the procedure is necessary---and a higher percentage say they are being paid regularly.The surveys also have found a steadily rising percentage of repairers are going directly to the automakers' websites to research needed OEM repair information. In 2015, just 32% of repairers responding to the "Who Pays for What?" survey said they used the automakers' websites to obtain repair information. That percentage has since doubled.The reports detailing the survey findings include Anderson’s insights into the need for the various procedures, along with links to various resources to help shops understand---and explain to insurers or customers---how the procedures fit into a complete and safe repair.“It’s clear from these surveys that whether or not a shop is paid for a particular procedure depends to some degree on whether or not the shop negotiates for it,” Anderson said. “Though this can vary by insurance company, DRP status or region of the country, the surveys show that while none of the procedures asked about are universally paid for by insurers, none are universally rejected either. There are many examples in the surveys where nearly three out of four shops report getting paid all or most of the time for a certain procedure, yet another 20 or 30% of shops say they have never charged for it. That’s something we’re trying to change.”

Database Enhancement Gateway Connects Collision Repairers, Estimating Systems

The Database Enhancement Gateway (DEG) is a website, initially created by three national trade associations---the Alliance of Automotive Service Providers (AASP), the Automotive Service Association (ASA) and the Society of Collision Repair Specialists (SCRS)---that enables anyone to submit inquiries about labor times or operations in any of three estimating systems, and to see the information providers' responses to these inquiries.In addition to questions about labor times or allowances, the DEG can be used to submit inquiries about any aspect of the estimating databases and system: inaccurate part numbers, missing parts, incorrect or missing labor notes, incorrect part descriptions, etc.For example, DEG Inquiry No. 7936, submitted in 2015, was triggered when an estimator felt the labor allowance in one of the databases for replacing the outer rocker panel on a 2013 Honda Accord was insufficient given the number of welds and time required. The next day, after reviewing the procedure, Motor Information Systems, which provides the estimating database used in the CCC Information Services estimating system, agreed, changing the allowance from nine hours to 11.The DEG also offers a handful of other free tools that can be of use to estimators. Its “Estimate Toolbox” section, for example, includes access to downloadable copies of the estimating guides---often generically referred to as “P-pages”---for the Audatex, CCC or Mitchell International estimating systems.Although formally launched in late 2007, the DEG's roots actually go back to a project launched in 2001 by the Collision Industry Conference (CIC). At that time, Hawaii shop owner March Taylor---also a working technician until his death in 2007---began a volunteer effort through the CIC website to collect, research and process hundreds of inquiries about the estimating databases.Although the major estimating system providers have long provided a way for anyone in the industry to submit such inquiries directly to them, Taylor believed a centralized inquiry system would be easier to use and offered a way for the industry to monitor what happens to such inquiries.As the number of inquiries submitted and tracked on the CIC website grew, a number of industry groups began discussing a more formalized organization and system for database inquiries.The three trade associations agreed to work together to create and initially fund what became known as the DEG. The DEG, which charges its users nothing for the service, has since expanded its funding sources through a sponsorship program, but it is still managed jointly by SCRS and AASP.A key goal for the DEG is to make the database inquiry process not only free but also simple and quick to use. The website includes a brief explanation of the process and tips for submitting a clear and complete inquiry. But the process involves little more than filling out a brief form identifying the vehicle, the area or part of the vehicle involved, and including one or two sentences explaining what information you feel is missing or inaccurate in one of the estimating databases.The DEG then posts the inquiry to its website and submits it to the estimating database company. Once that company reviews the inquiry, it provides its response---indicating what change, if any, it is making in response to the inquiry---to the DEG, which posts it to the website and forwards it on to the person submitting the inquiry.Although the entire process can sometimes be completed in just one or two days, some inquiries require more research; the database of inquiries on the DEG website lists the resolution time for each.

What Is the Collision Industry Conference (CIC)?

The Collision Industry Conference (CIC) is a quarterly forum that brings together collision repairers, insurers, automakers, vendors and other industry segment participant for presentations and panel discussions on a variety of issues.Through discussion at the meetings and volunteer committee work that takes place between the meetings, CIC works to build industry awareness and consensus on various issues, or offer proposed solutions or best practices that can be adopted on a voluntary basis.CIC was founded, originally as the Collision Repair Conference, rather informally in 1983 by California shop owner Al Estorga and a handful of others. Estorga had been angry after being told at an industry event it was not the appropriate time or place to discuss an issue he raised. He wanted to create a forum where it was “always the right time and place” to discuss the issues most important to the collision industry.Early meetings were little more than one or two dozen shop owners gathering to talk. CIC meetings now generally attract 250-500 people. Though it varies by meeting, generally about 25% to 30% of attendees represent repairer organizations, about 10% to 15% represent insurance companies and about half represent automakers, parts suppliers, paint manufacturers, associations and other industry vendors.CIC is more of an “event” than an “organization.” It has no members, board of directors, bylaws nor executive director. It has an administrator who makes meeting arrangements, and everyone who attends a CIC meeting is essentially an equal participant.The meetings are led by a CIC chairman who is selected by a committee of past CIC chairmen; though that selection is for a one-year term, CIC chairs have traditionally been granted a second one-year term.CIC generally has about a dozen informally-structured committees arranged by broad subject matter---i.e., Talent Pool and Education, Governmental, Parts and Materials, Industry Relations. The number and names of CIC committees change periodically based on key issues or topics facing the industry.The CIC chairman selects one or more chairmen to head each committee. Anyone is welcome to sign up to participate in any of the committees.Some of the work products to come out of CIC include an industry glossary of terms, a calibration workflow process and a variety of guidelines for “best practices” in the industry.CIC discussions and committee work has also led to the formation of a number of industry organizations, including the Database Enhancement Gateway (DEG) and the Collision Industry Electronic Commerce Association (CIECA).CIC meetings are held quarterly in locations around the country, often in conjunction with other industry events. Most meetings are generally one day or are held over two half-days. There is a fee to attend each meeting, or participants can alternatively pay an annual Gold Pin Sponsor fee that includes door fees for the meetings for that year.More information and a schedule for upcoming CIC meetings is available at www.CIClink.com.

Collision Repairers Discuss How They Are Coping with Parts Supply Chain Issues

A Collison Industry Conference (CIC) committee presentation earlier this year confirmed parts supply chain issues continue to plague collision repairers.A poll of repairers in the room at CIC in Phoenix found about one-third said parts-related issues lead them to delay scheduling about 40% of jobs. Another one in four said parts issues lead to delayed scheduling 60% of the time, and almost an equal number said it was 80% of the time.Greg Horn of PartsTrader said his company’s data indicates the median number of days for parts deliveries was fairly stable over 2021.“What’s changed is the number of outliers, the number of delays for individual components, which has increased pretty radically,” Horn said, reaching 14.7 days in December, up from 7.4 days in February and March of last year.He said if some relief from the microchip shortage enables automakers to ramp up production this year, that should reduce used vehicle values, putting more of those vehicles into the recycled parts supply chain.“It is probably the latter half of this year when we start to see some relief on both OEM and the recycled parts side,” Horn said.Still-elevated transportation costs, however, have non-OEM parts manufacturers in Taiwan rethinking what they ship.“Should I put in one bumper cover that would take up the space of 10 headlight units, or do I ship those 10 headlights at a bigger margin,” Horn said. “So in the short term, I think we’re going to see [shortages or] price increases on larger aftermarket components.”The committee asked repairers at the meeting what they are doing to address parts issues. A majority (70%) said one response has been to return more vehicles to customers with cosmetic parts still on order. Nearly two in five said that’s happening with 30% or more of the cars they repair.But Matt Radman of Coach Works Auto Body in Mesa, AZ, noted that solution is not without its own challenges.“We had a [Hyundai] Sonata that we couldn’t get the side garnish that goes from the bottom of the door and across the wheel well,” Radman said. “Right behind that is an exposed hole and unless you seal it somehow, moisture is getting behind there. So you have to address this on a case-by-case basis.”Something as simple as a missing window moulding could allow moisture to get into the door, he said, noting that returning unfinished vehicles requires thinking through these issues and making sure everyone involved, including the customer and insurer, is on the same page.Ben Clymer Jr. of Ben Clymer’s The Body Shop in Southern California said he’s experienced parts supply chain issues firsthand: he’s driving his own vehicle with damage from an accident because five of the needed parts are on backorder.He said, like Radman, his company is returning more otherwise repaired vehicles to customers missing cosmetic parts, though he said that requires letting customers know well in advance that’s a real possibility, and also “triggers having an additional tracking system for all those vehicles.”“We’re also triple-checking what can actually be repaired. Our repair percentages are going up,” Clymer said.Rich O’Leary, manager of Fix Auto Sierra Vista in Arizona, said another challenge of releasing vehicles with a cosmetic part that hasn’t arrived is the customer satisfaction survey question related to whether they had to bring their vehicle back to the shop.He said his shop has “invested in some steel and aluminum pulling equipment, and we do find ourselves repairing a lot more than we used to,” though he noted that entails understanding when that can be done as part of a safe repair, and what should not be repaired.O’Leary said they also use the PartsVoice website to locate needed OEM parts beyond the local market.“Often you’ll find a dealership around the country that has the part sitting on their shelf collecting dust,” he said. “It costs more to have them package and send it, but that’s an alternative.”But some at the meeting said searching for parts at dealerships out of your shop’s market doesn’t always resolve the issue. Some suppliers, for example, may not be willing to sell a part to ensure they have it for those in their market.“There’s a natural inclination when supply is short to take care of your best customers,” said Ken Weiss, who moderated the CIC discussion. “One of my other concerns is that all of the parts platforms that I’m aware of on the shop or insurer retail side expect the supplier to pay for shipping. Because of that, I know there’s a lot of parts that are probably not put into the search network because the supplier is not going to absorb the shipping when it’s a low-cost part."Or if it’s what we refer to as dimensionally-challenged; shipping a sheet metal quarter panel could cost more than the quarter panel is worth," Weiss said. "But to me it’s better, especially if you’re the insurance company, to get the quarter panel and pay the shipping rather than have the car sitting in limbo for two months.”Related news on the parts supply chain: From the Desk of Mike Anderson: Resources to Combat Collision Parts Supply Chain ChallengesMore news from CIC: Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements? Fully Automated AI Collision Repair Estimating ‘Not There Yet’

Remote Scanning Companies Foresee More ADAS Calibrations for Auto Body Shops in the Future

Nick Dominato, a senior vice president at asTech, said he believes collision repairers should be prepared for automakers to broaden their ADAS calibration requirements.“Because the automakers understand that vehicles are being marketed, sold, driven and experienced via those advanced driver assistance features, and it’s important for safety and the customer experience that those things work after a collision,” Dominato said during a CIECA webcast in January.He said OEM service information that may have initially called for calibration only after a sensor is removed or replaced, for example, now may say---as in the case of Nissan---that radar sensors must be calibrated “after any repair situation to the front of the vehicle that would cause the radar sensor to be shifted, removed, reinstalled or jolted in the collision.”Honda in 2017 called for calibration of camera or radar units when they had been removed or replaced, after a front-end collision or when doors were adjusted or replaced. By 2021, those requirements had been broadened to call for calibrations after a windshield is removed or replaced, and after any structural body repair.“Again, moving from a narrower calibration requirement of only when you touch the sensors, to these broader calibration requirements that reflect the concern that a sensor might have been jolted or shifted or moved,” Dominato said.He was asked if he foresees automakers shifting toward more self-calibrating systems. He said most sensors have some self-calibration capability, but that post-collision calibrations are not likely to go away.“A sensor may be able to compensate for mechanical wear and tear, settling of the suspension, or some bumper warping as a result of cold winters or hot summers, things of that nature,” he said. “But when we’re talking about a quarter panel that’s being replaced, or an impact bar that’s smashed as a result of a front-end collision, I don’t think the technology is ever going to get to a place where it can completely self-calibrate.”During another industry event, Eric Newell, vice president of business development at AirPro Diagnostics, said he believes how calibrations are performed may change.“I’m from Chicago. Dynamic calibrations are very difficult come this time of year because of snow, inclement weather,” Newell said at an SCRS Repairer Driven Education session during the SEMA Show in Las Vegas. “And the OEMs are seeing it. We’ve had discussions with Tier 1 vendors and OEMs. So we’re predicting that there’s going to be a shift toward more static calibrations as time goes on.”Newell also discussed what to consider before a collision repair business equips to perform calibrations. If you expect to do retail work for other shops in addition to internal work, Newell said, it may be preferable to set up a calibration center off-site, with a different name, potentially as an LLC or separate business structure, to avoid other shops not wanting to send work to a “competitor.”“If you’re Newell’s Autobody, I probably wouldn’t name it Newell’s Calibration,” he said.An off-site facility also gives you some flexibility in terms of location---the back of an office park with little traffic, or a high-traffic street corner with good visibility---and what you will therefore have to spend for rent, signage, building improvements, etc.For MSOs, he said, a location convenient to all of your shops allows for a hub-and-spoke model.Alternatively, find a location with a lot of other independent shops within a reasonable radius, Newell suggested. An off-site location and separate business entity makes it easier to get paid when subletting the work to yourself, including transport of the vehicle from your shop and back.“If it’s your existing business and in your own building, that becomes more difficult,” Newell said.

National Survey of Auto Body Shops Finds Revenues Going Up but Concerns Rising as Well

A national survey of collision repairers in the final two months of 2021 found well over half of shops (58%) expected their full-year sales to outpace 2020, with nearly one in five shops predicting they would end 2021 with a year over year increase of 20% or more.However, the survey, conducted by CRASH Network, found about a quarter of shops (23%) predicted 2021 sales will fall short of their 2020 numbers, with nearly one in 10 saying they expect to be down 20% or more compared to last year.“Parts availability and increase in total losses has pushed business down,” said one East Coast shop owner.“We have plenty of work to increase our numbers, but not enough employees to get it completed,” said a shop owner in Oklahoma. “We are running a 10-week backlog with over 70 cars in-process.”“Business is picking up, but now sales are limited by parts and lack of technician staff,” a Southern California shop owner concurred. “I need two body techs and another prepper in the paint shop.”The survey found the upward trend in business optimism over the past year came to a halt in the fall. The majority (61%) said they are “not very” or “not at all concerned” about their business still operating a year from now, and that was up from 43% a year earlier, but down slightly from 64% in mid-2021.Three in 10 of the shops acknowledged being “somewhat” concerned, up from 24% in two surveys earlier in 2021. About 10% described themselves as “very” or “extremely” concerned about their business viability, down from 26% a year ago, but unchanged from last spring.“Inflation is going to take a huge bite out of profits,” a Massachusetts shop owner predicted, saying he was “somewhat” concerned about the shop’s future.Still, most shops expect to make it through 2022.“Our business is currently stronger than it’s ever been,” a Missouri shop owner said.“This company has made it through many ups and downs since it opened in 1984,” a Wisconsin shop manager said.“Scheduling out two months,” a North Carolina shop owner said.An optimistic Minnesota shop manager pointed to his shop’s five-month backlog of work and “plenty of business in our area,” though he did acknowledge concern that 75% of the shop’s employees will retire within the next five to 10 years.“Need fresh faces ASAP,” he said.The survey found among the collision repair businesses that said they received a second-round Small Business Administration Paycheck Protection Program (PPP) loan in 2021, 70% said they have already received loan forgiveness. None of the shops surveyed reported having their loan forgiveness application rejected, but 20% said they still planned to apply to have the loan forgiven, and the remaining 10% were undecided about applying.Among those who said they received a first-round PPP loan in 2020, 84% said the loan had been forgiven; the balance either had not applied for forgiveness, were awaiting approval or were undecided about seeking forgiveness, but again, none reported having their loan forgiveness application rejected.

Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements?

A panel during the Collision Industry Conference (CIC) in November included representatives of two automakers and two insurance companies addressing a topic that repairers and others discussed at a previous CIC: can an auto body shop participate both in direct repair and OE certification programs, and meet the requirements of both?“I would never say that’s impossible, but it is very difficult at times,” said Ben Cid, collision business manager for Mercedes-Benz. “There are shops that do it. When you’re having to prove…why something needs to be done a certain way, there’s a lot more time invested in doing that. Again, it’s not that it’s impossible. But it definitely takes a lot more time on the shop’s side to really…prove what needs to be done.”Sandee Lindorfer, auto line director at Allstate, said she sees it as less of a challenge.“We have many [OEM-certified shops] within our Good Hands Network,” she said. “Between our network and the OEMs, we have more in common than we have differences. At the end of the day, we both want our customers to have a safe and proper repair. I don’t think that [needing to offer] proof of repair procedures is as great [an issue] as it may have been in the past when repair procedures weren’t easy to get your hands on.”She said parts restrictions by the automakers are probably the primary area where there’s “friction when a shop is trying to appease both the carrier and the OE.” When those conflicts arise, she said, they are addressed “case-by-case,” based on such things as “the contract that we have with our customer” and state requirements.“But there’s not too often that we can’t come to some sort of agreement,” she said.With CCC Intelligent Solutions and others documenting changes in cycle time, “touch time,” parts costs and other metrics, are insurance companies adjusting the key performance indicators (KPIs) by which they are measuring direct repair shops?In terms of cycle time and its impact on customer satisfaction, Lindorfer said insurers aren’t looking for shops to compromise repairs to return vehicles faster.“We still want safe repairs, and sometimes safe repairs take longer for whatever reason may cause that,” Lindorfer said. “We’re not asking anybody to take a shortcut and not do what they should do.”At the same time, she said, the growth of ADAS and other technology impacting repairs in late model vehicles shouldn’t impact all claims given the average age of vehicles on the road is 11 years.“Let’s remember that not every car we repair is a new vehicle,” she said. “We need to be sure we’re repairing that vehicle, regardless of age, appropriately. As the market changes and we [see] more and more of the vehicles that are more complex, we’re going to see that the KPIs are going to change. We’ll change with those KPIs.”She said Allstate has adjusted cycle time measures “over the years because of the complexity of repairs,” and good communication between shops and insurers will resolve issues about vehicles that are “out of the ordinary.”“So I can’t speak for every insurer; I can only tell you that we do reevaluate KPIs regularly,” Lindorfer said.Dan Tessadri, auto physical damage business consultant for CSAA Insurance, concurred.“We look at the KPIs, at our scorecards, on a yearly basis,” he said. “We look at the market and the impact of the supply distribution and other factors like that.”But panelist Pete Tagliapietra of NuGenIT said those companies’ practices don’t synch with what he sees in the auto insurance industry as a whole.“When we look at scorecards and KPIs across the industry, some of those KPIs haven’t been updated in 10 years,” Tagliapietra said. “So repairers [on those programs] are being held to the same KPIs.”He also noted while the average vehicle may be 11 years old, the average age of repaired vehicles is between 6 and 7 years old.“That puts us at OBD-II and well into the new realm of technology as we know it today,” he said. “I think we need to consider that…You can’t look at KPIs based on the way we repaired cars in 1999, and hold [shops] to the same level, especially in terms of cycle time.”Aaron Schulenburg of the Society of Collision Repair Specialists also told the panel he’s always surprised and concerned when anyone suggests it’s not more challenging now than it’s ever been for shops trying to “appease both sides of the equation” when it comes to automakers and insurers, saying that’s the crux of nearly “every single call that I get every single day.”He said he appreciated the automakers and insurers who at least took part in the panel discussion because the committee struggled to find people willing “to sit on the stage to talk about the things that really matter.”“There should be more who do,” Schulenburg said. “If they’re not willing to, there’s a bigger issue in this industry that’s leading to shops being stuck in the middle.”More news from the November CIC meeting: Fully Automated AI Collision Repair Estimating ‘Not There Yet’

Fully Automated AI Collision Repair Estimating ‘Not There Yet’

A panel discussion at the Collision Industry Conference (CIC) in Las Vegas in November included representatives from a number of technology companies touting the potential benefits---for auto body shops and insurers---of artificial intelligence (AI) estimating, but also acknowledging some of its current limitations.“We’re not there yet, 100%, with straight-through processing,” said Dune Pagaduan of Mitchell International, referring to AI being capable of completing all estimates without human interaction. “So is AI real? Sure, it assists us in making and automating decisions, thousands at a time…more quickly so that we shrink cycle time. But you still need experts, humans, to complete the whole process.”He said AI systems can currently write accurate estimates on “low-severity collisions.”“But when you get to higher severity type collisions---more complex, more parts---then that’s the journey we have to go to get to that 100%,” he said. “I think in the next two to three years, we’ll get there.”The panelists were asked if any AI system built on historical data can identify substrates, systems and OEM procedures for nearly new vehicles often involved in collisions.“That is the challenge,” Pagaduan said, noting historical data ideally needs to be paired with other information in the system, like OEM build sheet data and OEM repair procedures for the specific vehicle. “So not everything is AI. We combine it with the OEM procedures and our editorial data to produce that specific accurate estimate."In discussing what AI estimating offers shops specifically, the panelists noted the wide variance in estimates often seen even when different estimators look at the same vehicle. AI can help collision repair businesses increase consistency in their estimating, Pagaduan said.Panelist Jason Verlen of CCC Intelligent Solutions said it also offers shops access to photos and information even before the customer arrives.He noted as recently as three years ago, fewer than 1% of vehicle claims involved photo-estimating.“As of today, roughly 22% of repairable claims go through the process,” he said. “And we have some carriers on our system where over 70% of their repairable claims go through photo AI.”CCC offers a product, Estimate-STP, which, Verlen said, on low-impact collisions can write a complete estimate with no needed review or changes by a human. Beyond that, he acknowledged, it’s still “a joint process between the human and the AI.”But the AI does “make the process much more efficient,” he said, in part by getting a consumer an estimate faster, which in turn speeds their decision-making about choosing a shop and scheduling repairs.Jason Verlen of CCC Intelligent Solutions said about 22% of repairable claims are currently processed through AI photo-estimating.“So there’s huge increases and improvements in cycle time” and the customer experience, Verlen said. “But it’s not like AI solves all the world’s problems.”He noted the panel moderator talked about recently watching an estimating contest at a Texas trade show in which 16 estimators writing for a quarter panel replacement on a mainstream vehicle came up with 16 different estimates, ranging from 130 lines to 400 lines.“So someone may ask me: ‘Is your AI accurate? Does it match what a human would do?’ My answer is: Which one of those [16] guys do you want me to match,” Verlen said. “That’s why I say AI is no magical bullet. That’s why we combine AI with build sheet data, with business rules, with insurer guidelines, and that’s how we come up with an estimate that’s reasonable to the situation.”He suggested to “reduce skepticism” among new users, the systems’ thresholds should be set high at first so “virtually everything the AI generates on an estimate a human will agree to.” Then gradually loosen the thresholds to get more complete estimates, he said, after skeptics have “been trained to see that it does work” even if there are at times a “difference in opinion.”Jimmy Spears of Tractable said his company’s artificial intelligence estimating system has become adept at quickly determining from photos if a vehicle is a total loss.“One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of calling balls and strikes: Is this car repairable or is this car not repairable.”For insurers, he said, the system can produce 40% of initial estimates “without any further line items” needing to be added. An equal percentage require review of one or two line items---with the estimate annotated as to what an appraiser needs to review---while the balance will require being handled “old school: have it towed, take the car apart and go classic blueprinting.”Moving beyond that 40% of initial estimates “without any further line items” needing to be added will require greater access to vehicle-specific OEM build sheet data, he said.Jimmy Spears of Tractable said his company’s AI estimating system has become adept at quickly determining from photos if a vehicle is a total loss.“If we get that, we’re going to have a greater understanding of that vehicle, the DNA of that car,” Spears said. “And then we’re going to have a much better understanding of what this car really needs, its repair process. We have got to solve the problem of build sheet data, and we’re in the right room for that.”In the interim, he said, AI estimating offers benefits to more than just insurers. Tractable has a test going with LKQ Corp., he said, using the technology in a bit of a reverse way: helping determine which parts are not damaged on salvage vehicles.It could also help collision repairers with the customer sales process, Spears said. Currently, estimators point a potential customer to a waiting area while preparing an estimate.“Instead, they’re going to be able to quickly take some images of the car, and then while the images are being processed, they can take the customer around the shop and show the investment that you have” in equipment, training and certifications, Spears suggested. “When they get back to the desk, here’s the estimate.”More news from the November CIC meeting: Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements?

From the Desk of Mike Anderson: 3 Phrases I’ve Heard with Potential Power in the Collision Repair Industry

I’ve recently heard three people I respect in the collision repair industry each quote a different phrase that really resonated with me.I found myself continuing to think about how what they said is very applicable to our industry. So I thought I would pass those things along here.First, I was recently at a conference where Dan Risley of CCC Intelligent Solutions used the term “post-collision emotional support.” That brought to mind a couple of experiences I’d heard just recently from owners of General Motors vehicles.In the first, a Texas collision repairer told me his daughter had been in an accident in his vehicle. Not only did OnStar notify him of the accident, but they stayed in contact with him the whole time he was getting to the hospital where his daughter was taken.In another instance l heard from a GM owner, OnStar not only contacted him at the time of the accident to make sure he was OK, but followed up with him the next day just to confirm.I think that’s pretty amazing. It reminded me that about a year ago, after I’d had a medical procedure, both my doctor and the anesthesiologist called me the next day just to follow up, to make sure I was OK and wasn’t having any side effects. It meant a lot to me that they took the time to do that.I think the automakers are recognizing the opportunity that telematics offer them to provide that “post-collision emotional support” Dan was talking about. I think the GM stories are examples of that, and it’s going to help the OEMs leverage their brand and create raving fans out of customers who are in an accident in a GM vehicle.So is there a way for us as shops to similarly provide post-collision emotional support? I think there is. How about a follow-up call to the customer the day after they pick up their vehicle, just to ask if everything is good with their vehicle? I know shops struggle with all the demands they have on their time, but couldn’t this be a great way to cement customer loyalty?A second quote that really jumped out at me recently was shared by a Collision Advice teammate, Sheryl Driggers, who I have so much respect for. We were having a team meeting, and she said something like, “Where there is no communication, negativity fills the void.”It made so much sense in the context of our discussion that I asked her about it. She said she was paraphrasing Jon Gordon, author of “The Energy Bus,” “The Power of Positive Leadership” and other best-selling books.The actual quote from Jon: “Where there is a void in communication, negativity will fill it. Fill the voids so negativity can’t breed and grow.”To me, this really brought to mind all the supply chain issues we’re struggling with. If there are delays with the repair of a vehicle because of back-ordered parts or insurer-caused delays, are you keeping those customers actively informed about what’s happening? If there’s a void in your communication, they may be filling that void with negativity: “Man, that shop has really dropped the ball and isn’t getting my car fixed.”The fact Sheryl brought this concept to my attention hit home again just a few days later when I heard Ray Chew of CCC talk about what he termed a “no-update update.” Ray was talking about reaching out to customers just to let them know there’s nothing new you can tell them---there’s still no timeline from the supplier for the arrival of the part we need, for example---but you wanted to at least give them that update.The “no-update update” will help fill those communication voices to prevent negativity from creeping in.I’d love to hear how you’re offering “post-collision emotional support” or “no-update updates” to help avoid “voids in communication” at your business. Or if there’s a phrase or quote you’ve recently heard that’s resonated with you, drop me a line at mike@collisionadvice.com.

From the Desk of Mike Anderson: 7 Steps to Implementing Improvements Within Your Auto Body Repair Business

“I have all these great ideas, but I can’t get my people at the shop to help implement them.”I don’t know if that’s something you’ve found yourself thinking or saying, but I know as a trainer, consultant and 20 Group facilitator, it’s a comment I hear from auto body shop owners frequently.The problem, often, is shop owners may be great entrepreneurs, but not always great leaders. But it’s a skill that can be learned, through practice. Following the same steps over and over again will help you become a leader who can put great ideas into practice.Here’s my seven-step system for implementing something new at your shop.1. Choose a goal.Odds are, you have multiple ideas you want to try. Don’t get bogged down trying to do it all: Choose one or two to start; you can come back to the others later.2. Assign specific tasks.Let’s say you want to “5S” (clean and organize) your paint mixing room to make it more efficient. Choose the person or people who can best help you achieve that, and assign them three to five specific tasks: clean the scale, wash and paint the walls, discard unneeded items, standardize where specific items are to be kept. Don’t overwhelm them by giving them too many items on the action list. You can give them more tasks when they finish the first ones.But remember that your definition of clean and organized may differ from theirs, so either work with them the first time, or give clear, detailed instructions about your expectations.3. Determine and gather the needed tools, equipment and materials.Are you asking them to stay late or meet you on a Saturday to work on a special project? Then absolutely don’t kill morale by waiting until then before you run to the hardware store for needed supplies. Be prepared.4. Determine a timeline and set a deadline.Ask your team if they think the timeline you’ve set seems appropriate. An action plan in writing with the steps or tasks involved and deadlines ensures their buy-in.5. Check in at the midway point.Those who abdicate rather than delegate forget about an assigned task until weeks later when they notice it’s not done. At that point it’s as much your fault as theirs that it didn’t get done.One shop I work with agreed they would close out a stack of old repair orders within two weeks. The great thing about electronic calendars are the reminders we can schedule in them. I didn’t wait until two weeks went by to check in with that shop. I called one week later and said, “We’re halfway to the deadline. Are you still on task for finishing up in another week?”6. Document accomplishments.Keeping lists of successes and “victories”---almost a “yearbook”---will give everyone involved a sense of accomplishment. Any time you’re feeling discouraged, you can look back and see that you’ve worked through challenges and made improvements.Documentation might include checklists and photos as well; once the paint mixing room looks how you want it kept, post some photos that will remind employees of your expectations for how it is to be maintained.7. To sustain a change, choose someone to audit compliance.Studies have shown a person has to do something 30 days in a row in order for it to become habit. A frequent audit at first is crucial until something becomes habit, allowing for less frequent auditing later.Part of the challenge of getting employees to help implement change is that we all tend to view change in terms of “What is it going to cost me?” or “What am I going to have to give up?”Your job as a leader is to promote your vision, to help your team see what they gain from the change, to help them view it as improvement rather than just change. That’s making a change with your team rather than to your team.More From the Desk of Mike Anderson: Tips to Help Auto Body Shops Get Paid for Crucial Step of Destructive Weld Testing Destructive Weld Testing a Crucial Step You Should Be Paid to Perform Resources to Combat Collision Parts Supply Chain Challenges

Shop Strategies: GM Uses Her Industry Experience to Help Employees Manage Work-Life Stresses

On a typical day at Pacific Elite Collision Centers, Cortney Arthur might run through the shop’s production list, help write estimates, order parts or even detail cars. As the general manager of the company’s Downey East location in California, Arthur also spends time taking care of the insurance side of the business, keeping up with KPIs and ensuring the facility is compliant.“I’m a busy girl,” said Arthur, who was hired as a writer for Pacific Elite’s corporate facility a year and a half ago and then promoted to general manager just nine months later. “Numerous people told me that I wasn’t going to want the added pressure and it’s less stressful to be a writer. Since I took on the role as GM, there has only been one day when I thought, ‘What did I do?’ One day—not bad odds.”The family-owned and operated company is a 16-shop MSO with locations throughout Los Angeles, Orange and San Bernardino Counties. The company is owned by Tim Mullahey and Mike Salyards.Autobody News reached out to the busy mom of two to find out how Arthur juggles work and home life while managing a successful body shop.Q: How did your background in the industry prepare you to work as a GM at Pacific Elite?A: I started in collision repair in the early 2000s working for my family’s body shop in Lancaster—California Collision Center. After a few years, I decided I wanted to learn more. I wanted to be exposed to more cars and more repair processes and realized that the best way for me to do that was to work on the insurance side and become a field appraiser.I went to work for a large insurance carrier for five years and it was awesome. I had the time of my life! You write eight claims a day and visit so many shops and see different shop order processes. You travel from MSOs to mom-and-pop shops and are able to experience how shops are being run everywhere. I had a lot of exposure and met great people. I saw a lot of things I wouldn’t want to do and a lot of great things that I would want to do if I ever ran my own shop.After five years with the company, I wasn’t being challenged enough. I missed the rush of collision repair. I went back and worked for a large MSO for four years. Meanwhile, I became the single mom of a 4-year-old and 6-year-old.During that time, I became really burned out. I was working 11- and 12-hour days. It felt like it had turned into a numbers game and you were only as good as your last month and your sales. Eventually, I quit and took three months off. Then about a year and a half ago, I received a call from a friend from Pacific Elite who recommended I meet with the managers there.They were so excited and enthusiastic, and they reminded me of home. I was a little leery at first, but I got onboard and they brought me into their corporate store, which is great exposure because you get to meet so many wonderful people.I remember on my third day of training I was in Covina and the COO, Bob Benjamin, drove to meet me as a new hire. I thought, ‘That’s rare, that’s really rare.’ I knew right then this was going to be different. I kept waiting for the other shoe to drop, which is bad because you should never think something is going to happen, but I just kept wondering ‘When is it going to turn into how everything else has been?’ A year and a half later, it still hasn’t.Q: What do you enjoy most about working as a GM in this industry?A: My favorite part is getting to be part of everybody’s lives. I try to have a conversation with every employee at least once a day to make sure they have everything they need. I want to find out if there is anything going on in their lives that I need to be aware of. I have a great rapport with all my staff.I also make it a priority to understand what they want out of their life and help them reach their goals. I’ve helped fast-track a couple of people already who felt stagnant in their positions and were not happy at the time that I came on board. Since then, we’ve moved them into better positions and they are learning more and growing, and you can see them evolving as people. They’re happier now and sometimes a spouse will come in and say, ‘They’ve changed so much.’ I enjoy getting to see that.Q: What is it like to be a woman in a typically male environment?A: The officer manager and customer service representatives (CSRs) are female and there are women who are part of the corporate team. However, I am the only female manager in the organization. It’s really great. There are always going to be people who think that because I’m a girl and they are guys, they know more than me. There are a lot of customers who have changed their mindset and realized we can learn from everybody. However, there are still customers who say they want a man to help them. I think that’s always going to be something women have to challenge.It’s especially prevalent in collision repair. Girls aren’t supposed to know about cars and anything like plumbing or building a house in our society’s vision. What’s great is that girls are becoming more aware and involved. Typically, those who do get involved in this industry are really great at it because we’re excellent multi-taskers and pay attention to details.Q: What advice would you offer young women who are thinking of joining the industry?A: It’s not easy. You have to have tough skin for sure and ask about anything you don’t understand. Don’t be afraid because there’s no stupid question. If someone makes you feel stupid for asking that question, it’s on them, not you.It’s a learning process and you’re going to have days where you want to rip your hair out. But then you’re going to have days where you will be so happy with what you are doing. It’s a roller coaster. Every day you might put out 10-15 fires. Parts don’t come in or something happens. It’s an adrenaline rush and you’re either going to fall in love with that or it’s not going to be for you. Whatever you do, I don’t think you should ever give up because of somebody else’s opinion. I think if it’s something you want to do, then go for it.My company asked me to speak at UTI to encourage young women to get involved in the industry and show parents that this profession is not just for boys. It’s an honor and really cool to think you can inspire others to join the industry and they can have a great fulfilling life in it.Q: How have you handled some of the challenges of work-life balance?A: The first few years were chaotic. I remember times when I was working at the MSO and my son had the stomach flu but I couldn’t miss work, so we made a little bed on the ground next to me. I had a couple of great managers who were understanding of that. I was lucky. There are plenty of people who would say ‘Your kid can’t come.’It was really hard. I had a lot of babysitters and a nanny for a while, but I was determined. I knew what I wanted and that there would be a sacrifice, and unfortunately that was time with my kids. Now my boys are 11 and 13 and more independent.I’ve always been one of those people who are really good at organization. One of my managers told me that I’m detail-oriented to a fault. If I know that something big is coming up, I come in early or stay late the day before and try to work around it so I can get to my kids’ practice or game or do whatever I have to do.It’s a double-edge sword because I see a lot of moms who are helicopter moms and I see how these kids are not able to do a whole lot for themselves when the time comes. I can come home at 5:30 p.m. and the laundry will be folded, chores and homework will be finished and one of them will have started making dinner.They are very resilient and independent little boys and I hope that they are going to be great members of society someday—I think they will be.Q: What sets Pacific Elite apart from other repair facilities?A: Originally, Pacific Collision and The Elite Group were two separate companies that had been in business independently for about 20 years. Then The Elite Group acquired Pacific Collision in November 2013 and the company became Pacific Elite. It now has about 385 employees.As big as we are, we are still very family-oriented. Nobody is treated differently. We usually see the owners and our executive team a few times a week. They make their rounds and talk to everybody. They are also incredible about staying up with the latest equipment. I’ve never seen an organization like this. If they think it will get the customer a great result that we’re all happy with and uses less waste and energy, then they are definitely going investigate it. We are a lean process organization. We have spaces and signs and stalls for everything. You walk through my shop and most people’s mouths hit the ground because they cannot believe it’s a body shop.Q: How has using a lean process benefited the business?A: Using the lean process is very organized and improves everything. There’s less clutter and things are where they are supposed to be every tim,e so there’s less downtime. It also improves cycle time and overall quality.A saying from one of our owners is: ‘A messy stall or a messy shop isn’t honest.’ It’s true because you can hide a lot behind a mess. That’s why when it’s clean and up front, you know what you have and where it is going.Q: What is your hope for Pacific Elite?A: I hope they continue to grow and maintain the environment they have right now. It’s really unique, especially with this whole MSO concept the collision industry is in right now. To find your own little place at work where you feel at home and safe is very special. They’re great people and I’m very thankful for where I am.I think that is why we don’t have high employee turnover. There may be other MSOs to work for, but few offer the quality of work life that we have here.It’s really awesome. I would love to grow within the company. I always joke with my COO and tell him, “When you retire, I want your job!”

Shop Strategies: How a PA Shop Delivers Excellent Customer Service & Consistently Receives Top Reviews

When Jim Pfau talks to his customers at Alan’s Collision Center, he often asks if they are familiar with their vehicle insurance policy. The general manager of the Philadelphia, PA body shop said that since the average person does not have a clear understanding of their policy, he takes the time to explain the issues associated with the repair process, such as labor rates and parts usage.Alan Zeitz founded Alan’s Collision Center in 1973. Just two years later, he decided to move to Florida and sold the business to Dennis Winokur and Bob Neisser.“Our mission is to ensure vehicles are repaired safely and returned to pre-collision condition,” said Pfau, who has worked in the industry since he was 16 years old. “We deliver the best customer service and workmanship possible and put our customers first…always.”Pfau was hired in 2012 to modernize the business. Since then, the company has invested thousands of dollars annually in the latest, most advanced equipment and training.Autobody News talked to Pfau about the importance of communicating to customers throughout the repair process, his views on scanning vehicles and the reason he thinks the shop consistently receives top reviews.Q: You have 19 five-star reviews on Facebook as well as five-star reviews on Customer Lobby. Congratulations! What do you think sets Alan’s Collision Center apart from others in the industry?A: Honestly, it is simple. Listen to your customers, educate the customers, and keep them in the loop. Do quality work and sell yourself at the delivery. We show all of our customers the work performed and explain why it is important to review us. By the end of the repair, we usually wind up with a new friend. Google and Facebook are so important. Almost everyone reads reviews during a big decision and I understand the value of that.We are NOT a DRP (direct repair program) shop, and we do believe in factory certifications. The industry is slowly changing, and I believe that over the next five years, certifications will be mandatory in order to keep your doors open. We do invest in our shop annually. The equipment we own is up-to-date and well-maintained. We are also an I-CAR Gold Class shop.Alan’s Collision has a unique business model. We are certified for Ford F-150, Mercedes Benz, Hyundai, Honda and Nissan. A large percentage of our work is referred by two local new car dealers.Our employees make all the difference. They are mature and work hourly so the work is top-notch and it shows. We have 15 people employed at Alan’s and most of them have worked here for over 20 years. We have a pair of twins who started right out of high school—Mike Kochis (lead metal tech) and Steve Kochis (lead painter). Mike and Steve have never worked in another body shop. The brothers are now in their 50’s.Q: How has your background in the industry prepared you to work as general manager at the collision repair facility?A: I spent all of my youth in my father’s garage doing restoration work. When I was 18 years old, I landed my first job at Faulkner Cadillac as an engine rebuilder. I was then hired at Acura of Huntingdon Valley as a lead technician and transmission specialist. Soon after, I was promoted to service manager. During my first year as a young manager, I won a trip to Aruba, all expenses paid for being number one out of 25 for customer satisfaction. Later on, I was promoted again to service director. I was in charge of four award-winning service departments. Our body shop manager had a heart attack and I was asked to take over collision. This was a huge adjustment, as I had never dealt with an insurer before. I felt it was time to move on and “fix” another business, so I went to work for a local MSO. Quickly, our store became number one in service and received numerous awards.Once I had everything dialed in, it was time to move on to my next project. I worked for a local Chevy dealer that had a dying collision center. It took me five years, but when I left, it was well in the black.Five years ago, I was asked to take over the store at Alan’s Collision Center and modernize it. This has by far been my biggest challenge yet, and the most fun. I have an awesome group of friends on Facebook. We exchange ideas and war stories every day.Q: How do you communicate the repair process to customers, and what is the importance of doing so?A: During the first point of contact, we review the scope of the damage and how we will repair it. We also inform customers about the way their insurance policy dictates what an insurance company will pay. The biggest eye-opener for consumers is always aftermarket or salvage parts usage. They are always under the impression that if they demand OEM parts, the insurance companies will simply say OK. We explain the entire process and how we interact on their behalf to get the claim paid correctly. We continually update consumers throughout the repair process. We make them aware of any issues that require their attention regarding the insurance claim. We also show them industry publications and arm them with information to refute an insurance script. I have always believed that an informed customer is a good customer.Our repair process is not anything elaborate. We blueprint the repair after a complete tear down, order parts through CollisionLink and research ALLDATA for a correct repair. A work order stays with the vehicle and is quality checked at each hand-off point. We match parts for correctness and then monitor the cycle time in the office. We also use our paint scale in the front office to determine the true costs of repair.Every file has the quality control sheet, ALLDATA research and electronic notes among our staff. When our customers see everything in place, it gives them a sense of confidence.Q: In your opinion, what is the importance of scanning vehicles and what steps have you taken to explain this to consumers, employees and the industry in general?A: This is a big topic! It is not only important, but also a legal obligation. Can you imagine if a repair shop did not scan and calibrate the collision avoidance system and the owner was in an accident as a result? Personally, I do not pre-scan every repair. Pre-scanning, in my opinion, is to catch any system failures early in the repair process. If a vehicle is in for minor body repair, I do not see the need to pre-scan. However, those vehicles will always get post-scanned and calibrated. This is extremely important to review with the owner of the vehicle prior to the repair. We arm them with the position statement from the vehicle manufacturer and explain why it is important. We also explain to the owner why aftermarket scan equipment cannot properly see all of the data. We use an outside vendor that has OEM software, with the exception of Mercedes-Benz.I have been heavily engaged with one insurance company that is flat-out refusing payment to the vehicle owner. This insurance company is one of, if not the largest, in our country. I have spoken to the managers there and they hold the position, “…that if there is no light on the dash, the vehicle does not need a scan or calibration.” This is old-school thinking and despite the numerous articles and position statements I have provided, they will not change their point of view. As a result, I have made several complaints to the Pennsylvania Department of Insurance, contacted our Attorney General Josh Shapiro, who happens to be one of our customers, and wrote to every local news outlet. I will not give up until I get this resolved for the consumer. As far as the industry goes, I am very disappointed. I am disappointed by how many shops do not follow OEM procedures. The OEMs have set the standard for which we are to repair the vehicle properly—not the insurer.The industry is in turmoil, but it will get better as we weed out the poor repair shops that do not care about safety.

Shop Strategies: Alaska Shop Owner Focuses on Company Culture & Customers

In Anchorage, AK, body shop owner Ryan Cropper often tells customers that Able Body Shop is where strong values merge with quality work. Cropper currently operates two locations in The Last Frontier and said he has built his business on relationships and trust---one customer at a time.Autobody News spoke to Cropper about how he and his team go the extra mile to provide excellent customer service while dealing with collision repair challenges in Alaska.Q: How has your background enabled you to run two successful body shops?A: From an early age, I learned the benefits of hard work and found that true commitment and dedication carry value. I have always had an entrepreneurial spirit. When I was 10 years old, I began mowing lawns in Alaska and started my own summer business called RC Lawns. By the time I was in high school, I had renamed my company Aurora Landscaping and hired many of my classmates as employees.However, my true passion was auto body work. I worked on my family’s and friends’ vehicles and attended auto repair classes in Oregon to learn more. When I was a tech in college, I found out that Able Body Shop Midtown was for sale in my hometown. It had been established in 1969, and the owner wanted to retire. I felt it was the perfect fit, so I purchased the shop in 2002. I was 22 years old and ready for a new adventure!I used money from small loans to expand the company and in 2004, I purchased Total Truck Accessory Center. We opened Able Body Shop Downtown two years later. In 2016, we added another building that used to be a body shop, and we are currently working on an additional facility that will open this winter.Q: What are some of the things that set your body shop apart from others in the industry?A: We tend to be very different than the average body shop in the United States. The number one difference is the culture of our company and the steps we take to make it a positive one. We have found that having a culture that we are proud of is one of the most important components of having a successful business.Number two would be the team atmosphere. We are still a flat rate shop, but we truly run in teams. Every team member in our company is paid 100 percent commission except two---our maintenance man and bookkeeper. We also only spend marketing dollars on things that directly benefit our community.Our management style is democratic and borders close to the guidelines of mentorship. We encourage informal communication of knowledge and experience. We support dialogue that builds positive relationships, and we give our employees a reputation to live up to. I am proud to be able to contribute to the growth and success of my 50 employees’ careers and personal lives.Q: What are some of the current challenges collision repairers are experiencing in Alaska?A: Finding great team members in our market is very difficult. We also have a problem with parts availability. Parts can take over a week to arrive in most cases. Another challenge we have operating a collision repair business in Alaska is the drastic difference we can experience in workloads, depending on the season. When the snow is on the ground from October to April, it really changes the game!Q: Is your shop part of any DRPs?A: We have most national DRPs as our business partners. Over the years, we have had great success with those partnerships and continue to value what it brings to us. The challenge is they often expect the same results you see in the continental 48 states, which can sometimes be difficult to achieve.Q: Can you tell us about the shop’s internship program with the King Career Center? A: We have been sponsoring a successful internship program with the King Career Center for over 10 years. We hire a couple of the most talented high school students from the local auto body program and have had fantastic results with this over the years. The students start out working for free, just getting school credit. Once they are somewhat up to speed, we put them on payroll and assign them to a team. Many even stay with us for a full auto body career.Q: As an advocate of education, how do you ensure you are advancing your technicians’ skills and what is the importance of doing so?A: Alaska requires auto body repair technicians to have a creative mind and patience while honing an attention to detail that ensures a high level of quality on every job. They have years of practical body shop experience and hands-on exposure to high technology equipment. Currently, we are concentrating on I-CAR training for our staff as well as OEM certifications. We spend over $30k a year with I-CAR training. We do whatever it takes to get our staff the training needed, even if it means flying out of state for it. I am also extremely involved in 20 groups with Axalta, which is where I find out what is up-and-coming in the industry.Q: What initiatives have you taken to support the community in Alaska?A: We are big on sponsoring local organizations that are making a difference or helping the people of Alaska. That is where we came up with Empowering Destinations. We started the nonprofit with the intention of giving a reliable vehicle to a deserving community member who needs a helping hand. To date, we have given away nine cars to families in need. For the past three years, thanks to the help of other community businesses, we were successful enough to give two vehicles per year.We are strong advocates of community involvement and I’m an active member of the Anchorage Chamber of Commerce. A couple of years ago, we received an award called the “Gold Pan Award” for Distinguished Community Service by a small business, given to us by the Chamber of Commerce. That was a huge deal for us!

Shop Strategies: How Being a ‘Values-Driven Company’ Has Set NM Shop Apart from Competition

Just one year ago, Pamela Weese joined ReCARnation Total Automotive Solutions as the company’s COO. With extensive experience in organizational management and business development, Weese was named CEO this past April.Autobody News reached out to Weese to find out more about the Albuquerque, NM, body shop and how it sets itself apart from neighboring shops by being a “values-driven company.”Q: As a prior director of business development, how did you get involved in the collision repair industry?A: The business was established in 2009 by Marc Powell as a car dealership with in-house financing. A small garage was created the following year and the company has continued to grow. We now operate the mechanical, paint and body shop out of an 18,000-square-foot facility where our 15-person team provides electrical, mechanical and paint and body services. We offer a full range of services to both corporate fleets and retail clients, including 24-hour roadside assistance and towing.I joined the company in May of 2016 after working in venture capital. Marc asked me to come on as the COO to streamline operations, implement cutting-edge software, and improve process and procedure. I have no background in the world of cars, so I knew this would be a challenge, which is exactly what I needed for personal and professional development!Q: You often describe the business as a "values-driven company.” What are some of the ways that you incorporate this into the business?A: Our core values are simple and drive everything we do at RecCARnation.We are a team united and driven by our commitment to a set of common values, which we have all agreed to: be transparent and truthful, serve compassionately, improve constantly, choose joy and laughter, and create success.;We are transparent and truthful with our clients. Trust is the bedrock of a healthy relationship. We tell the truth as we understand it and are completely transparent about our products, processes and abilities.Serving others is our highest purpose. We respect all people, without judgment, and serve with humility, gratitude and heartfelt compassion.In terms of improving constantly, we are committed to continuous assessment and action to get better at everything that matters in our personal and professional lives.We also try to create joy and laughter. Happiness is not an accident. It is a decision. Each of us makes the conscious choice to bring joy and laughter every day to our clients, vendors and one another.Success requires common effort and is meaningful only when shared. We do everything possible to participate in the success of every individual we touch. Some days that is easier than others, but we try to stay on the journey.Q: Can you tell us about the LifeXtend™ certification program and other initiatives that set your company apart from others in the industry?A: LifeXtend is a full reconditioning process that can take a high mileage vehicle and make it safe, reliable and beautiful for another 50,000 miles, depending on the vehicle. For most people, it makes more sense to give their existing car a makeover rather than sign up for seven years of car payments. We also offer short-term financing.Q: What are some of the ways your shop puts customers first? A: My number one goal for ReCARnation is to continue and improve upon the exceptional customer service that the staff provides to our customers. Every day, with every customer, we focus on providing high-quality auto repair services coupled with top-notch customer service.When customers arrive at our shop, we adhere to a strict “no wait” policy. This means all customers are seen at their scheduled appointment times, or at the moment they drive in for service. We value their time and their experience, as our customer is our first priority!Working in the automotive industry, I have gained so much knowledge about the customers’ stress around having their cars in the “shop” and the invoice that awaits them. Very few people walk into an automotive shop happy. I want our clients to leave happy and satisfied with the quality service we deliver.  With countless five-star reviews, we are proud of our reputation as one of the Albuquerque area’s most trustworthy auto repair shops.Q: You wrote an article about why data matters in the automotive industry. What is the importance of data to a shop?A: We make it a priority to use the most updated software in order to serve customers in the manner they expect. Each one of our staff members has an iPad that is their constant companion all day long to use the software system, called AutoVitals, that ReCARnation has adopted.Every car that comes into our shop receives a Digital/Visual Inspection (DVI) that tells us what is going on with the car. Pictures are taken of all the places where service is performed on an automobile. The DVI with the photos is then emailed or texted to the customer so he or she can pick which services are the most important. The services are all indicated with a color: red for needs immediate attention, yellow for needs attention soon, and green for no services required. Customers are clear that we are not up-selling them on something that does not need to be fixed right away, and therefore feel a sense of trust in our company.As the CEO, I go in to AutoVitals every day and check the most important, cost-effective, and baseline work that is performed by all employees. We are able to find out about shop and technician effectiveness, technician efficiency and productivity, and other metrics.Q: How do you ensure the technicians stay up-to-date with new technology and procedures?A: Our team receives ongoing training in automotive technology and auto repair services. All of our technicians are ASE or I-CAR certified.We take pride in performing exceptional quality work in terms of mechanical precision, paint and body detail, thorough inspections and emissions compliance. We often tell our customers that we offer dealership quality knowledge and experience at an affordable price.Q: What is the importance of body shops giving back to the community and what are some of the events you have hosted in the past?A: Our auto repair business is built around our clientele, our commitment to service and our community. We like to say that we are “Communitarians” at ReCARnation.Giving back to the community that supports our business is the only way that we are ever going to better our society. In New Mexico, there are so many nonprofits that need help, as we rank very low in education, food security and pay scale. I also feel that it brings morale to the crew here at ReCARnation. We work together to help those in need and to create change in our community.We have sponsored blood drives and events for a wide range of nonprofit organizations, including The Domestic Violence Resource Center, the Veterans Integration Centers, The NM Philharmonic, the Kirtland Partnership Committee, NM Dog, University of New Mexico, Paws & Stripes and many more.Q: As an independent body shop, how will you prepare for the changes ahead in the industry?A: Our industry is in for profound changes in the coming decades. The advent of electric cars will reduce vehicle maintenance requirements and autonomous vehicles will lower the accident rate. These two things will likely develop simultaneously. We don't know who the winners will be, but scale and professional management are likely keys to navigating the new realities.

Shop Strategies: Riding Wave of Change: Hawaii Shop Shares Initiatives That Will Take Family Business into the Future

In Waipahu, HI, employees from Oka’s Autobody and their families recently met at the local bowling alley for the company’s summer time family fun event.“We hope it helps bring our employees together in a setting other than work,” said Brandon Okahara, part owner of the body shop. “We often joke that we spend more time with these guys than our own families. You have to find that balance between working hard and still having family time outside.”Brandon and his siblings, Marlo and Kyle, have a good understanding of what it takes to balance family and business while working together. Oka’s was established by their father Eddie, uncle Fred and uncle Henry Okahara in 1965. The brothers ran the business out of a small three-stall garage and eventually moved into a 7,000-square-foot location after building up their clientele. When Fred retired, Eddie decided to buy him out. Meanwhile, his three children, Marlo, Kyle and Brandon, began taking an active interest in running and expanding the family business.After retiring three years ago, Eddie and his wife, Marlene, handed over the day-to-day operations of the shop to their children. Now, Marlo works as the office manager, Kyle is a repair planner, and Brandon spends his time as the lead estimator. Marlo’s husband, Carl, also takes an active role in the company, leading future development.;Together, the Okaharas have grown the family-run business, which now employs 25 and operates out of a 19,000-square-foot facility. Autobody News talked to the owners of Oka’s to learn more about the initiatives they have taken to help their shop stay successful as well as some of the challenges they have dealt with while running a facility in Hawaii.Q: Operating a family business can be challenging. What steps have you taken to work together effectively?A: Brandon: Like anything else, whether we are a family or not, I think there are always situations that are going to come up where there is a difference of opinion. That has to be expected. The benefit, of course, is knowing that the other parties involved genuinely have a vested interest in the company. We can trust the fact that the decisions being made are for the right reasons. In that sense, it’s great. There are not a lot of times that you can be in that situation where you have trust.Our team is very structured in the way we run our business, and it has helped us accelerate our growth. We regularly sit down as a family and go over our mission and goals for the business. The industry is rapidly changing, so we need to stay in touch with one another and stay on top of what is going on. There are a lot of moving parts of running a body shop. Our meetings help keep us focused on our end goal. We are able to bounce ideas off one another and come to a consensus.Q: What sets your body shop apart from others in Hawaii?A: Marlo: I believe that what sets us apart from other shops on the island is our customer service.Brandon: For us, the main focus is always our customers. Whether it’s a phone call, face-to-face interaction or delivering a vehicle, we always remember why we’re here---for our customers.I always tell our employees that they need to remember this might be the first accident the customer has been in and it can be stressful. It’s emotionally and mentally draining to get into an accident, and what they are looking for is somebody to help them. Fixing a car is just part of that process. You have to be empathetic to what’s going on and treat everybody as an individual. Put yourself in their position. What would you want to happen and how would you want the experience to roll out?Q: What methods have you found to be most beneficial to operate the business?A: Brandon: Over the past couple of years, we have been going down the road of incorporating a lean and process-centered environment at the body shop. The way we process cars is by using a team concept. We have multiple body teams and the paint department operates as its own team as well. With new technicians coming in, it’s next to impossible to be just one person and have a trainee with you all day long. It makes the job very difficult. At least this way, if the employees operate as a team, there are multiple levels of experience working together so they can accomplish more. It helps with communication and the newer techs’ growth can also be a little quicker because there are different people who can help train them in different aspects.It has had its ups and downs of course, but the guys seem to like to work together as a team.Q: With the shortage of employees in the industry, how have you found new talent?A: Brandon: Finding new technicians is very challenging. We decided that moving forward, we need to train our up-and-coming techs from the ground up. Recently, we hired four younger technicians that have little-to-no auto body experience. We also hired a student who will be graduating from Honolulu Community College’s auto body program this year. About two years ago, they began revising the college program in hopes of drawing more people.It’s a good thing that they are doing it, but we are in the stage where we just can’t wait. We have been growing sales-wise over the past five years, but if you don’t increase the number of people producing the work, it puts a little stress on the guys. They have the extra set of hands, but it’s a different type of stress because on top of the work they are already doing, they have to help train someone new. However, they are realizing that it’s an investment on their part as well.Q: How much of your business is reliant on DRPs? A: Brandon: Currently, our shop is heavily dependent on DRPs. Probably 95 percent of our business is DRP-driven. We’re working to bring that number down because we want to be a little more diversified.Carl: It’s important to have balance. If you think back to the history of body shops before consolidations, there were independent shops operating without DRP programs. There should be a balance between whatever your business model is: DRPs, wholesale business, corporate business, etc. and having a strategic plan is also critical. We, as repairers, need to figure out how to diversify and that is something that we are working on daily.Q: What do you attribute your growth to over the last several years?A: Brandon: Over the past five years, our business has been trending upwards. We’re starting to make decisions that will allow us to be more profitable. We’ve found that having an attitude of just getting the work done, putting a car out and collecting a check is not necessarily the best thing to do sometimes. We are really looking into the way we are managing and building the business.Hawaii is a very unique environment. The processes are very different from the mainland. For example, we have to accommodate for parts delays. If a part is not available on the island, it usually takes about five days to arrive. Shops also have to make adjustments due to space constraints.Q: How has financial planning been instrumental in the growth of your body shop?A: Brandon: We have been working on incorporating a process-centered environment in our shop, which helped push us in the right direction. Our involvement in the AkzoNobel Acoat program has also been instrumental. They bring a lot of experience from multiple markets.Eddie became involved in the Acoat group many years ago. The top North America shops get together and go over the mission and goals of the business and discuss financial planning.Although we are competitors, we talk about the common problems we have and ways to address them. That’s one of the biggest benefits. We have a core group of shops in Hawaii and we get together and are able to talk to one another honestly.We feel that an important aspect of running our facility is financial planning. In addition to attending the Acoat meetings, we go over finances on a regular basis during our family meetings.Part of this is doing a cost analysis of our different cost centers, looking at the averages and our profit and loss statements. Then we ask ourselves, “What can we do better?”Q: What are some of the initiatives you have taken as a result of your financial meetings?A: Carl and Brandon: Going into 2008, we were already doing this type of financial analysis on a regular basis. The economy was in a little bit of a downturn and we began to look at how we could better manage the cost of doing business.One of the things that always seemed to stand out was our electric bills. They are much higher in Hawaii in general. The nation was focused on alternative energy sources at that time, and there were grants being offered for progressive businesses that were doing things for the environment. Running a sustainable and environmentally friendly company has always been an important priority for us. For example, we have used waterborne paint for many years, have set up recycling programs for the business and done other things that are good for the environment, as well as the employees at our shop.There were other collision repair centers looking at installing photo voltaic systems, which we kept referring to as solar panels. Everyone we talked to corrected us. We decided to find out more about it and eventually installed a system of our own.Q: What are the benefits you have realized since installing the system?A: Carl: It took us two years to fully research it. We talked to about 20 different companies and received quotes that ranged from hundreds of thousands of dollars to a million-plus dollars.Brandon: By installing the system, we have been able to almost completely remove ourselves from the power grid. The system creates enough energy to run the shop. It is also a way of providing sustainable energy and is good for the environment. One of the biggest benefits is that we were able to create a separate power company that helps fund our parents’ retirement.Q: As a progressive company in this industry, what are the shop’s priorities looking into the future?A: Carl and Brandon: Continuous training is crucial. We have used the same vendor since the late 1990s---Island Concepts. We count on them to train our employees throughout the year and keep everyone current. We provide I-CAR and ASE training to all of our technicians as well as participate in safety and equipment training. We also understand the importance of learning about sales and negation. We try to stay on top of everything.Training is expensive, and we expect that it will only increase in the future due to the complexity of vehicles. We have no choice but to figure out ways of gathering extra profit, whether that is through increasing prices or decreasing our operating expenses. It’s up to us to figure out how to catch that wave now and lay it out on the table and figure it out. As a family, our goal is to do that together to remain a profitable family business moving forward.

The Best Body Shops’ Tips: How to Improve Your Interviewing Process & Hire for Keeps

When Mike Davidson started his first day on the job at a car dealership in Arkansas, the business owner asked him to stand aside and watch him fully detail a GMC S15 pickup truck.It was a cold day in November, and 19-year-old Davidson recalls the owner demonstrating exactly how he wanted the job completed. That experience, which he refers to as “Wash the Truck,” has stayed with Davidson his entire career. Not only does the industry veteran ensure he gives his employees a clear understanding of his expectations while on the job, but he also takes the time to hire employees who fit the culture of his business.Davidson, president of the American Skilled Labor Association and owner of Parkway Automotive in Little Rock, AR, recently spoke to shop owners and managers at an AkzoNobel Acoat Selected performance group meeting held in September in San Diego, CA, about how to improve their interviewing process. The presentation was part of the company’s early bird training sessions offered during the week-long event, which was attended by more than 200 body shop representatives, distributors, AkzoNobel employees and guests. Held twice a year, the performance group gives shops the opportunity to take time away from working in their business to work on their business. During his presentation, titled “Hiring for Keeps,” he shared examples of what he learned over his 35-year career in the automotive industry, as well as the specific hiring process he developed after setting out to discover how he could improve the way he hired staff.Part of this was based on his learnings from Leadership IQ, an organization that focuses on leadership training. After reading books and completing video training over a one-year period, he found that one of the common themes with successful companies, such as Southwest Airlines and Chick-fil-A, was the similarity in the employees’ attitudes, no matter where they were located across the country. As a result, he incorporated what he had learned and put it into practice at his business.“No matter who we are as business owners, hiring the right people makes a big difference with the internal customers---our employees. We hire people for what they know; we fire them for who they are!” he said. “Some people, no matter how hard you try, just don’t fit the job.”The key, according to Davidson, is to hire employees who fit your culture rather than hiring someone primarily based on their skills.“I believe the people you hire are the people who are going to create consistency within your organization,” said Davidson. “Consistency creates your brand.”Although having excellent skills is very important, he also recommends owners/managers determine if prospective employees have the ability to get along with staff, understand the company’s strategy and structure, and share the same values.“If you have someone working on a customer’s car who doesn’t share your values, he or she is going to take shortcuts you don’t want, and is going to put out a product that you don’t want to be put out. Every time,” he said.Davidson discussed the interviewing techniques he uses on a regular basis.“You have to have a process in place and you have to have a system that will help you determine if the person is the right person for your organization,” he said.By altering the traditional interviewing method and listening to an interviewee’s answers, Davidson said it’s easier to discover if a person is the best fit for the business.He advised shops to eliminate what he referred to as “hypothetical” questions. Some of the examples he shared included: “What song best describes your work ethic,” “What kitchen utensil would you be,” and “How would you rate me as an interviewer from a scale of 1 to 10?”“None of these questions help determine who the person really is,” said Davidson. “Questions should have different responses from different candidates. If the answers are the same for everyone, you have the wrong question.”Other questions to be avoided include those that lead the interviewee on how to answer them. For example, rather than asking someone to talk about a time he or she had to adapt to a difficult situation, he recommended asking about a time the person was in a difficult situation.“Then, pause and give them an opportunity to think and let them answer the question,” he said.Davidson said the ultimate goal is to ask questions that reveal what every business should be looking for---a high performer.“There are two types of people who walk into an interview---the problem-bringers and the problem-solvers,” explained Davidson. “Your job is to decide which one of those people is sitting in front of you.”He classified them as low performers and high performers.He described a low performer as someone who will hear a problem and do nothing more, whereas a high performer will offer a solution to the problem at hand. To tell the difference between the two, Davidson said that shop owners and managers need to change the way they listen during a job interview.A good first step is to interview your current staff to learn more about your culture. Not only does it allow you to identify the actions you want to see in your business, but it also helps you figure out the ones that you do NOT want in your business culture and that already may be there.Once you have figured out the characteristics for your culture, you can begin the interviewing process. Davidson said there are many benefits: You’ll deepen your hiring pool, discover untapped talent, reduce the risk of hiring the wrong people, and cut turnover.“It’s not easy work, but it’s important work,” he said.He advised owners to put on their “attitude eyes.”“We need people who can handle problems with the right attitude,” he said. “You have to find attitudes in your organization that identify the low performers and high performers.”Every question, according to Davidson, should be a cliffhanger.“It must be open-ended and conversational,” he said. “You must allow them to think.”When deciding where to hold an interview, Davidson recommended creating an environment that fosters dialogue rather than a monologue. It might mean meeting at a comfortable place like a Starbucks couch or sitting side-by-side in the conference room.“Avoid sitting across a desk, which is a physical barrier,” he advised.Davidson shared examples of interview questions he has found to be helpful when determining low performers versus high performers, and offered insight about each one.“Could you tell me about a time you lacked the skills or knowledge to complete an assignment?”It fosters openness and encourages conversation.“Can you tell me about a decision you made that felt risky or you might fail?”Low performers always seem to play it safe, and high performers take a risk even if it means failing.“Tell me about a time when an organizational rule created a barrier to achieve an outcome you wanted?”Low performers, for the most part, do not like playing by the rules whereas high performers respect the rules.“Can you tell me about a time you didn’t have the information you needed to complete a project?”Low performers need constant hands-on attention, and high performers excel at getting the information they need to work independently.“Can you tell me about a time when you had to think outside the box?”Low performers recycle the same thoughts over and over, whereas high performers generate unique ideas.“Can you tell me about a time you received negative feedback from a boss?”Low performers find ways to blame someone else for their problems, and high performers choose their words carefully and help solve problems.“Could you tell me about a time you were given an assignment outside your role?”This question helps determine if the prospective employee is a team player.Davidson said that no matter what questions you develop with the assistance of your team, there is a five-part question he always recommends including during the interview process. He calls it the “coachability question,” and stressed the importance of listening to each response carefully to help you get to know a prospective employee:1) What is your boss’s name and can you spell it for me?2) Tell me about xx as a boss.3) What is something that you could have done differently to enhance your relationship with xx? 4) When I talk to xx, what is he going to say about your strengths?5) When I talk to xx, what is he going to tell me about your weaknesses?Davidson also offered interview tips to consider: Count to three before you speak to give the interviewee time to respond. If you need clarification, ask questions such as: “Were others involved?” “Can you give me specifics?” “What was the timeframe?” “Where did this take place? Tell me more about what made you choose that action.” Look for the warning signs of low performers: They want individual recognition, make excuses for why it won’t work, are quick to blame and eager to escape accountability, throw up their hands, have a negative disposition and are highly sensitive. Look for character traits of high performers: They are highly collaborative, help one another without being asked, are self-directed learners, ask questions to gain greater clarity, and go out of their way to support their peers. Pronouns can often tell you a lot about a person. High performers will always talk about themselves and what they learned. Low performers talk about other people.The ultimate goal, according to Davidson, is to find and hire employees with the right attitude and who fit the culture of your business.“You can’t do it quickly,” said Davidson. “You must do it methodically, have a process, assimilate the information, and then you’ll wind up making a really good decision. Hire the wrong person, and you just hired your weakest link.”As a result of his learnings over the years, Davidson developed a step-by-step process that he now shares with other small businesses across America. He said his seminar can be applied across any industry:1) Prescreen Document: First, the prospective employee is asked by the office manager or service advisor to fill out a 10-question document with the absolute requirements of the company (e.g. driver’s license, do you smoke, how many driving violations in the last three years).2) Application: A job-specific application is filled out.3) Interview: The prospective employee is interviewed using questions developed by management and staff that will help determine if the candidate will be a good fit for the business culture.4) Interview with staff: If the first interview is successful, the candidate is given an opportunity to talk to the staff and ask questions about the facility and how the business is run. Once that is complete, the staff meets to determine if the job applicant is a good fit for the team. Davidson said that at his business, it has to be a unanimous decision in order for the candidate to be hired.5) Job offer: A thorough job description is prepared at this stage and compensation is discussed.6) Tech report card: All staff members fill out a report card about the new hire after 30, 60 and 90 days to gain feedback about his/her performance. The new employee is also asked if there is anything the business is doing that is keeping him/her from doing a really great job.This article was based on the presentation “Hiring for Keeps,” held during the AkzoNobel Acoat Selected performance group meeting in September in San Diego, CA.For more information and to schedule a presentation, contact Mike Davidson at 501-993-6121 or email at miked@parkwayautomotive.net.For more information about the AkzoNobel Acoat Selected program, visit www.acoatna.com.

Shop Strategies: Military Vet Focuses on Customer Relationships

Before working in the collision repair business, Robert Castellano had a different career path—the United States Marine Corps.He enlisted on Sept. 10, 2001—the day before 9/11 when the towers were hit—and served for six years. During that time, he spent three years and nine months in Iraq and was promoted to sergeant. Later, he volunteered as a private security contractor working personnel security detail. As a combat veteran, he has been awarded the Combat Action ribbon and Presidential Unit Citation.With a passion for cars, Robert decided to join his brother, Will, at Brookston Body Shop, where they have run the shop as co-owners for the past decade in Houston, TX.“I just love cars and love helping people,” said Robert. “I guess that’s why I also volunteered to serve. I wanted to help people who could not help themselves.”Q: After leaving the United States Marine Corps., how did you get involved working at the body shop? A: I have been around the body shop business and cars since I was a kid. My father had a shop, and that's how my brother, Will, started in the business. Will opened a body shop in 2002, and I joined him in 2005 when I was getting out of the military. My purpose was to help expand the business. We were in an older neighborhood where the clientele was a little shady and always looking to cut corners. My brother told me to start looking for a new location, and I found the perfect place in the Heights area of Houston, Texas. We started operating there and have been doing better and better every year!We expanded to our second shop across the street, where we do our assembling and detail the vehicles for delivery. We are currently at 10 employees strong and our focus is always on the customer. We do not work for the insurance companies—we work for the customer. Without the customer, neither us nor the insurance company would be in business.Q: How have you set your body shop apart from others in Houston?A: What sets us apart from others in the industry—at least around our area—is that we are “old school.” We love to interact with the clients and are available 24/7. Our customers deal with us directly and we strive to make sure that everything is perfect. We value our customers and do whatever it takes to accomplish the job, no matter how big or small. We go out of our way to make our customers happy and hope to make a lifelong relationship.I think people are surprised because we were both young when we started the shop here in the Heights 10 years ago. I was in my late twenties, but at that time looked younger! My brother was about 32, but also looked like he was in his late twenties.Most of our customers seriously do become our friends and are known to just show up at the shop and hang out. That is why our motto is: “Where we meet most of our friends by accident.” I know a few people use that, but we really mean it! We are lucky to do what we have a passion for. When you love what you do for a living, it quits being a job.Q: With the shortage of technicians in the industry, what is your advice about hiring veterans?  A: I think hiring veterans is a good idea because they are used to structure, thinking outside the box, doing more with less and usually have a good work ethic. Arriving early is a big thing and failure is never an option. They are usually dedicated to their unit, which is the equivalent of their working team.I'm sure you can find these qualities in the civilian world as well, but I think in the military you learn them at a really young age. Who would trust an 18-year-old to work on a $50 million jet or with the cryptography that is set on the radios for communication? In the corporate world, most people would not trust someone this age with running the coffee maker or copy machine. However, in the military an 18-year-old is entrusted with the life of his comrades and to make decisions that would keep the civilian population alive. We had an 18-year-old Forward Observer. He is the guy calling in the airstrikes or artillery. If he made a mistake giving the pilots or artillery men the wrong coordinates, innocent civilians or even his comrades could have been killed. I think that’s a pretty massive responsibility for someone this age who cannot even drink beer yet. If a shop has the opportunity to hire a veteran, I highly recommend it.

From the Desk of Mike Anderson: Tips to Help Auto Body Shops Get Paid for Crucial Step of Destructive Weld Testing

In a previous column, I wrote about the critical necessity to perform destructive testing of welds prior to welding on any vehicle---and regardless of whether your shop is being paid for that procedure.But I also believe you should be paid for this crucial work, and that’s what I hope to address here.Those of you who have read my articles in the past on better negotiating know I believe the process involves four questions: Is the procedure necessary? Is it included in any other labor operation? Are there pre-determined times? If not, what it is worth?Looking at any of the OEM repair procedures should convince you that it is necessary. Here is some of the wording I’ve seen:BMW: “To determine the optimum electrode contact force for spot-welding, carry our spot-weld shear tests on sample sheet metal.”Ford: “Place the welded sample in a vice and carry out destructive weld tests by peeling the scrap metal apart using large lock-type pliers. Measure the weld nugget to determine the nugget meets Ford weld nugget requirements.”Hyundai/Kia: “Test welding must be performed before welding vehicle body.”Toyota: “Welding strength must be validated by tuning the welder and performing destructive testing.”I could go on and on, but you get the idea: It is a necessary procedure.The next negotiation question: Is it included in any other labor operation? No matter which estimating system you are using, you should be able to find that the user’s guide---often referred to as “procedure pages”---lists set-up and performing test welds as a not-included operation.If you can’t find it, visit the Database Enhancement Gateway and read the estimating system providers' responses to inquiries about this, including #15358 (Solera/Audatex), #12565 (Motor/CCC) and #16652 (Mitchell).Like virtually all automakers, Toyota makes it clear destructive testing of welds must be performed prior to welding on a vehicle.None of the estimating systems publish a labor time for destructive testing of welds, so the answer to the third negotiation question is no.That leaves you with the fourth question: What is it worth?I can’t answer that question for you. Perhaps you could conduct your own time study. In any case, remember it should be based on how long it takes an average technician---one with five to seven years of experience---to gather the tools, equipment and supplies needed, perform the task safely, and return the tools, equipment and supplies to their store area, and clean the work area.Remember, too, material costs for this process are not included. That can include OEM-approved wire, welding tips/nozzles, shielding gas and gun liner. If you’re buying welding coupons, keep that cost in mind.You can also improve your chances of being paid for this necessary step by documenting the process. Shoot images of the test welds prior to testing, while the test welds are in the vise, and after they destructively tested. If you use an electronic quality control app, you can set it up to require these photos, ensuring they are time- and date-stamped. Some shops also actually label and store the test welds to help limit their liability should any questions about the repair arise down the road.Remember the automakers state the welding coupons you use should be of the same material with the same coating that the new replacement panel will be attached to. In some cases this may require multiple different coupon thicknesses and coatings, such as galvanized.In addition to photographing the destructive testing of welds, some shops label and store the test welds as part of their documentation.That’s a common oversight, according to Rick Miller of Wadsworth International and a program consultant for Jaguar Land Rover North America and Subaru of America.Others mistake he sees: Not checking to ensure the correct wire type is in the machine, not understanding what makes a good quality weld, not following the specific placement of welds called for by the automaker, or the use of MIG welding because of a perception that it’s easier than squeeze-type resistance welding.Potential sources of coupons include I-CAR, your welder manufacturer or Custom Metal Shearing in Ohio.Some other resources that may be helpful:CollisionHub offers a welding validation series and will build customer QR series for shops to put on their welding equipment to offer “just in time” training for the tech.SCRS has some great information on its website, including video of a panel discussion on OEM expectations about welding.American Honda offers two-day hands-on welding training for anyone in the industry, with a discount for Honda and Acura certified shops. Attendees will learn how to identify steel strengths and thicknesses on Honda vehicles, and how to find Honda service information requirements for each type of recommended attachment method. After completing 13 unique practice joints, attendees are expected to complete multiple replacement procedures.To register, visit academy.verifactsauto.com, or for questions, email collisioinrepairtraining@na.honda.com.“Anyone may enroll, but I would suggest this is not a class for beginning welders,” said Scott Kaboos, national assistant manager for collision repair training and technology for American Honda. “It is an advanced level class, and so far we have had a 50% pass rate, mostly because some attendees did not have prior basic training.”Listen, I mean this in love, but we as an industry need to get it together! We must follow the OEM procedures. Not setting up and performing destructive weld test is not negotiable.All of the steps above should help your shop join those being paid regularly for performing destructive testing of welds. But whether or not you choose to pursue being paid for it, I can’t stress enough that you need to ensure your technicians are absolutely performing this crucial step every time they will be welding on a vehicle.

The Best Body Shops' Tips: ‘The Basics of Blueprinting’: Leading to Better Cycle Times, Improved Efficiency, More Accurate Estimates

By implementing the blueprinting process, collision repairers are finding that hidden damage can often be uncovered before the vehicle is repaired.John Shoemaker, business development manager for BASF, said that blueprinting can lead to better cycle times, improved efficiency and a more accurate estimate. During the SEMA show in Las Vegas, Shoemaker shared blueprinting tips with body shop owners and managers who attended his Society of Collision Repair Specialists (SCRS) seminar: “The Basics of Blueprinting.”“Hidden damage is the number one reason for delays in the repair process,” said Shoemaker. “Blueprinting is a team effort that involves the estimator, the body technician, the painter and your parts people. When you’re finished with the blueprinting process, you will want to have a really clear definition of what’s going to happen to that vehicle and how all the pieces come together.”He said there are five main objectives to blueprinting: developing an accurate plan of repair that identifies all labor operations; communicating the repair requirements to all departments; devising a schedule for repair; putting together a plan for resource utilization; and eliminating work stoppage.Some of the useful tools to consider having on-hand during the blueprinting process include a point of use cart, which eliminates errors as well as trips back and forth to the office; a camera; a tread depth gauge; measuring and blend tools; dent viewer boards; system scanners to verify trouble codes and diagnose restraint system codes; and parts carts.15 Steps for Successful Blueprinting:1. Review initial estimateShoemaker stressed the importance of reviewing the initial estimate to triage the repair and determine if tear-down is really necessary.“You can find out quickly what the vehicle needs by scanning the estimate,” he said.2. Map the vehicleDifferent marker colors can be used to map a vehicle. For example, use a green marker to indicate operations that have been approved for repair; a yellow marker to show supplement operations; and a red marker to note areas not approved to repair or that are identified as pre-existing damage. Shoemaker said shops can visually enhance the repair plan using circles, arrows or short notes and write customer requests or repair messages on the windshield.3. Verify vehicle information and take preliminary photosWhen verifying the vehicle information, Shoemaker said to look at the make, model, trim level decoding, mileage, production date, exterior and interior color of the vehicle. He said that one of the most critical things to do during the process is verify the preliminary photos, which should include four separate shots that capture each corner of the vehicle in a photo, as well as photos of the license plate, the instrument cluster, one with the engine running, dash warning lights and mileage, VIN plate and production date.4. Pre-scan diagnosticsA pre-scan of the vehicle will locate any diagnostic trouble codes with the vehicle.“That’s where you are going to pick up your time, by finding issues in front of the repair” said Shoemaker. “Through the OEM process, you’re going to find a ‘tree.’ Some people call it a rabbit hole. The time you’re going to bill for is based on how far down that rabbit hole you’re going to have to go to correct the trouble code.”He recommends having fully charged batteries before conducting any scan. In addition to a pre-scan, Shoemaker said a post-scan of the vehicle will verify the need for recalibration.5. Damage reviewWhen conducting a damage review, Shoemaker recommends starting at the end with the most damage and working panel by panel to the opposite end of the vehicle to identify the repairs needed. Part of the repair process includes a review of the Procedural Pages (P-pages), which describe the included and non-included labor operations. The Society of Collision Repair Experts (SCRS) Guide to Complete Repair Planning is a free resource available on the SCRS website and includes operational reminders for the collision repair industry.6. Disassemble for repairFirst, Shoemaker recommends positioning your parts cart to store all the parts removed and separate the usable from the unusable. Place the clips in labeled bins and identify any that are broken.“Disassemble with reassembly in mind,” said Shoemaker. “We want to disassemble completely so when you go to put it back together, you’ve got every single thing you need.”7. Perform the R&I (remove and install) processRepair access can include headlamps, mounting brackets, windows and Interior trim while refinish access includes door handles, weather strips and fender liners.“Make sure to include this information in the line notes,” said Shoemaker. “The estimate is a communication device that tells everybody what you are doing and why.”8. Inspect lighting and wiringThe number one CSI complaint, according to Shoemaker, regards lamps. As a result, he recommends inspecting all wiring harnesses for kinks/breaks, looking for broken bulbs and identifying the number of broken wires in the line note. A parts line can be added for connectors, tape and solder.9. Inspect inner vehicle structureWhen reviewing the structure composition, Shoemaker said to pay close attention to the metals you are working with. OEM websites, AllData and I-CAR guidelines are all resources that can help shops determine steel type and ultimately, the reparability of the vehicle.10. Structure measurement and repair“Similar to scanning, any vehicle that has considerable damage needs to be measured,” said Shoemaker.Establishing torque box measurement includes measuring select points, determining the damage, reason (squash or mash) and severity. Shoemaker recommends shops itemize each repair required.“Document exactly what you replace,” he said. “We live in a litigious society. We own the repair---we give everyone a lifetime warranty.”11. Determine additional damageThis includes associated damage to adjacent panels, mechanical repairs and interior repairs from secondary impact and restraint systems. Some of the websites that can be accessed to verify the repair process in respect to restraint systems include: OEM procedures, I-CAR, AllData and OEM1stop.12. Refinish requirementsDuring this stage of the process, Shoemaker said to determine blend requirements, the multi-stage process, paint times, as well as any clear and stripe requirements. When looking at identifying the paint type for a certain vehicle, use your paint manufacturer’s system, such as BASF’s SmartTrak system.13. Address other requirementsChecking the fluid and tires are also important parts of the process.“Any fluids removed should be measured,” said Shoemaker. “This allows for adequate replacement and billing.”After identifying the specific OEM requirements, reusable fluids can be stored in a sealed container and any Freon recovered should be documented. Regarding tires, note the tire size and depth in the line note, as well as the brand.14. Complete repair plan and take final photosWhen completing the repair plan, Shoemaker said to verify the “Incl” labor and conduct a P-Page audit for all the vehicle parts and procedures. When in doubt, he recommended consulting the Database Enhancement Gateway (DEG) database found at degweb.org. Funded by the Alliance of Automotive Service Providers (AASP) and the Society of Collision Repair Specialists (SCRS), DEG was developed to help improve the accuracy of collision repair estimates. The repair plan can be used as a checklist for final photos.“Take the photos in the order of the estimate and label them for clarification,” said Shoemaker.15. Vehicle value and reparabilityWhen determining a vehicle’s value, Shoemaker said shops can conduct thorough research on the NADA website and indicate the exact make, model and trim as well as the current mileage. The reparability of a vehicle can be determined by taking the appraisal total and dividing it by the vehicle value as a percentage. For example, if you take the appraisal total of $8,695 and divide it by a vehicle value of $12,025, the repair percentage is 72%. Shoemaker said that by comparing the repair percentage to your local laws, it will help you determine if a vehicle should be repaired or considered a total loss.“Overall, when you are blueprinting, be thorough and descriptive, itemize all repairs, take photos and document, document, document,” said Shoemaker. "Use line notes whenever possible. They’re free---they don’t cost a thing. If the insurer says, ‘No,’ you haven’t given them enough information.”
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