Aluminum in the Paint Shop » SEMA Preview » Cycle Time
October 2014//Vol. 33 No.10
www.bodyshopbusiness.com
Go Get That
Work!
Don’t wait for the work to come to you — go pound the pavement! We show you how.
Show Issue
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Inside
October 24 October 2014
ON THE COVER Go Get That Work! Too many of us wait for insurers to bring us work when we should be pounding the pavement.
Vol. 33 No. 10
FEATURES
30 Aluminum in the Paint Shop TECHNICAL
What the paint shop needs to know when it comes to addressing aluminum in the repair and refinish process.
40 Rivet Bonding Comes Full Blast TECHNICAL
Now that rivet bonding has hit the mainstream, it’s time for shops to get trained and equipped for this repair procedure.
50 Hitting for the Cycle MSO
These MSOs now “get” cycle time and have implemented processes to keep this key performance metric competitive.
62 Tackling Substance Abuse PERSONNEL
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Addressing substance abuse among your employees first starts with having a policy stated in your employee handbook.
78 Forgotten Labor BUSINESS
There are a lot of labor operations we perform and don’t charge for...but we should. Here are a few.
SHOP TALK Editor’s Notes
SEMA Show Preview A guide to Sin City’s favorite show, including educational classes and entertainment.
8 12 Publisher’s Perspective Clark’s Corner 14 20 Web Presence Management
Sustainability takes center stage in D.C. It’s time for the SEMA Show!
Woe is the dealership body shop manager. A quick look at the main social media platform specs.
BODYSHOP BUSINESS (ISSN 0730-7241) (October 2014, Volume 33, Number 10): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2014 Babcox Media, Inc. All Rights Reserved. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to BODYSHOP BUSINESS, P.O. Box 13260, Akron, OH 44334-3912. Member, BPA Worldwide
DEPARTMENTS Guess the Car ....................................................................................4 eBuzz ................................................................................................6 Industry Update ..............................................................................10 Buying Tips......................................................................................28 Product Showcase..........................................................................109 By the Numbers..............................................................................112
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Guess
#138
the Car
SOLVED!
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What vehicle MODEL does this picture represent? Fax your guess to (330) 670-0874. Include name, title, shop name, city, state and phone number. Or submit your guess with our online contest form by visiting bodyshopbusiness.com/guessthecar. The winner will be randomly selected from correct entries and awarded $50. Entries must be received by Oct. 31.
See the November issue for winner of Guess the Car #138.
See Max = (Ford) C-Max
!
WINNER
*Only one winner will be selected. Chances of winning are dependent upon the number of correct entries received. Employees of Babcox, industry manufacturers and BSB advertisers are not eligible to enter.
#137
#139
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October 2014 | BodyShop Business
Lanie Mueller, estimator, National Auto Collision Centers, Tucson, Ariz.
Countryman = (Mini Cooper) Countryman
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They Said It On
e-Buzz
The latest online content from BodyShop Business September 18 — We’re at AkzoNobel’s press conference on sustainability in Washington D.C. What is sustainability? Where people, profit and the planet overlap.
Like • Comment • Share
: BodyShop Business Readers Group
We want to know how your year has been so far. Are sales booming or dwindling? Up just a little. – Kevin Wells, owner, Quality Collision Centers, Inc.
Kevin Wells
Up about 18 percent. – Jim Patrick, collision repair shop manager, Joseph Chevrolet Jim Patrick
@BSBMagazine: Learned all about turning ideas into actions and communicating w/various generations at this morning’s #PPG-MVP sessions!
Find 1,000’s of BodyShop Business articles online at www.bodyshopbusiness.com 6
October 2014 | BodyShop Business
bodyshopbusiness.com Lean: A Long Way to Go? Comment by Michael Rudert: The old ‘form follows function’ is something I’ve been observing for more than 30 years of designing and constructing body shops. Forty years ago, I took courses in industrial psychology at the same institution that Demming graduated from. American car manufacturers ignored him, so he took his talents to Japan, and the rest of that story is what we’ve all been talking about for years now. Eight years ago, we changed our companies’ focus to industrial painting and manufacturing facilities where lean production has gotten traction. Until the body shop industry starts to erect buildings with lean processes in mind and the equipment to allow lean to flourish, it will just continue to do workarounds in unworkable structures, never realizing the full benefits. We thought that the rise of MSOs would remove the financial cap on better facilities, yet we still see the old ‘mudbox’ approach to new body shop construction. ASA Soliciting Estimates for Blend Within Panel Study Comment by Forrest: Another bag of issues are partial refinish on repaired panels, refinish times on used and aftermarket parts, refinish times on quarter panels due to sail and rocker panels with no break points, and overall paint and material allowances. The reality is that repair facilities that want to repair vehicles properly and expect a fair profit are being nickel and dimed to death all over the entire repair process. We are not the problem. The real problem is the way vehicles are manufactured. They’re put together as fast and as cheap as possible with overpriced parts and one-time use parts. Also, the number of processes and procedures required on the majority of these repairs is rising. Insurers should start hammering the manufacturers and leave us alone.
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Editor’s
Notes
Publisher
S. Scott Shriber, ext. 229 sshriber@babcox.com Editor
Can We Sustain? he latest issue of Rolling Stone hit my mailbox the other day. I don’t know how I got roped into a subscription; one minute, I’m searching their archive for an article written in the 1970s by Hunter S. Thompson. The next thing I know, I’ve bought a threemonth trial subscription, which renews for 12 months automatically, of course, if I forget to cancel.
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On the cover, I see there’s an article about the pollution China is creating as it flexes its industrial muscles. When I go to the feature, I see a photo of Chinese citizens wearing masks bicycling through a thick haze of coal smoke. Holy cow! Really? Is it that bad? I had no clue. How could those people stand for that? It was fitting, however, to read the article just before jetting off to Washington, D.C., for an AkzoNobel press conference on sustainability. AkzoNobel has been big on sustainability for a long time, but it has always been a
somewhat mysterious concept to me and, I’m sure, others. But the press conference cleared things up for me. Simply put, sustainability is where people, the planet and profit overlap. Basically, corporations today are extracting much more from the environment than they’re putting back in, and this, in the long-term, is unsustainable. At this rate, we’ll eventually run out of resources and/or change the climate so drastically that human life as we know it will be in jeopardy. At the press conference, AkzoNobel talked of an online sustainability tool scheduled for rollout sometime later this year or early next year. The tool will allow body shop owners to see where they rank among their colleagues as far as sustainability goes. As AkzoNobel North America Communications Manager Bill Orr said, this is the “blue ocean” view and the triple bottom line benefiting people, the plant and profit. How sustainable are you? Perhaps it’s time to ask yourself. After all, we’re all in this thing together.
Jason Stahl, Editor Email comments to jstahl@babcox.com
Jason Stahl, ext. 226 jstahl@babcox.com Managing Editor
Gina Kuzmick, ext. 244 gkuzmick@babcox.com Contributing Editors
Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, Tom Ferry, Kristen Hampshire, Curt Harler, Hank Nunn, Carl Wilson Graphic Designer
Lisa DiPaolo, ext. 281 ldipaolo@babcox.com Advertising Services
Kelly McAleese, ext. 284 kmcaleese@babcox.com Director of Circulation
Pat Robinson, ext. 276 probinson@babcox.com Director of eMedia
Randy Loeser, ext. 285 rloeser@babcox.com Subscription Services
Ellen Mays, ext. 275 emays@babcox.com Tel: (330) 670-1234 Fax: (330) 670-0874 Website: bodyshopbusiness.com Corporate
Bill Babcox, President Gregory Cira, Vice President, Chief Financial Officer John DiPaola, Vice President Beth Scheetz, Controller A limited number of complimentary subscriptions are available to those who qualify. Call (330) 670-1234, ext. 288, or fax us at (330) 6705335. Paid subscriptions are available for nonqualified subscribers at: U.S.: $69 for one year. Canada/Mexico: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via air mail: $129 for one year. Payable in advance in U.S. funds. Mail payment to BodyShop Business, P.O. Box 75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.
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Industry
Update
Snapshots from AkzoNobel’s Acoat selected North American Performance Group Meeting/Media Event Sept. 17-19 in Washington, D.C. Read more in Editor’s Notes on pg. 8.
Collision Industry Using YouTube to Educate Consumers By Gina Kuzmick veryone today who’s not hiding under a rock or living in isolation knows of the exploding popularity of YouTube. It seems more and more people are either watching or posting videos, for entertainment and other purposes. And today, when many people have a computer in their pocket and like to share videos they enjoy with their friends, these videos have become
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very effective at getting a message across quickly to a lot of people. It seems the collision repair community has caught on to this trend, too. Almost every major equipment manufacturer has posted training, product or promotional videos on YouTube. And collision repair shops and post-repair inspectors have taken to YouTube to uncover bad repairs and educate consumers on their rights.
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Sparking a Movement » One post-repair inspector, Billy Walkowiak of Collision Safety Consultants, posted a video online that sparked a movement. An elderly couple had their van repaired by a local body shop, but Walkowiak discovered that the vehicle was repaired incorrectly and was unsafe for travel. The couple then filed a lawsuit against the body shop, so Walkowiak de-
cided to create a documentary about their experience in order to spread awareness about the importance of post-repair inspections. He approached AP Media, a company that had produced other YouTube videos for the collision repair industry, to assist with the production and distribution. “It showed a lot of people how just a minor change in a repair could Continued on pg. 104
»| Industry Update |«
Team PRP Recycling Group Rejects PartsTrader fter conducting an extensive survey of its members across the U.S., Team PRP (Premium Recycled Parts), a national network of independent auto recyclers, has decided it cannot endorse PartsTrader in its present configuration. However, it has fully endorsed the use of eProcurement mechanisms to automate and add efficiency to the procurement of OEM recycled auto parts. The membership survey conducted in August 2014 showed that, while most members joined the PartsTrader program with high hopes for increased sales to their current repair facilities and the opportunity to sell to State Farm DRP facilities they were not selling to, tabulated results demonstrated that there have been very limited incremental sales, while costs resulting for participation have increased. Specifically, Team PRP states that the labor associated with responding to requests and completing transactions has increased for most of its members. Statistics also showed, according to Team PRP, that the amount of time required to sell a part is considerably higher with PartsTrader than with other methods, and the percentage of quotes that result in sales is substantially lower. However, more than
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70 percent of Team PRP members recognize that eProcurement in the parts ordering process is not only inevitable but, under the right conditions, would be welcomed. Team PRP said that most of its members feel they already have the technology to help drive electronic procurement through their computerized inventory systems. Also, in many situations, they’re already using such systems to source parts from each other. Extending the mechanism to external entities in a secure environment, the group states, is seen by most as the next logical step. The reasons most Team PRP members indicated dissatisfaction with the PartsTrader program, said Team PRP, include but are not limited to: It does not use technology properly to fully automate the search process It does not filter out parts inappropriate for auto recyclers It does not include sufficient part detail to allow proper part identification. The details most mentioned as lacking, according to the survey, include production dates, vehicle mileage, a more effective VIN decoder, better part descriptions and digital images of the damaged vehicle It does not make it mandatory that the request include Hollander
interchange, the cataloguing method used by virtually all auto recyclers in the U.S. Its process is too slow and inefficient It does not provide efficient reporting tools recyclers can use to measure results It does not include effective means of communication between the parties Team PRP states that its research has shown that competing ePro-
curement programs are being developed and will soon be introduced by other industry providers. In its commitment to promote as many effective sales opportunities for its members as possible, Team PRP says it will research these new offerings and will recommend to its members participation in those programs that can provide better results than what is currently in the market.
ARA Takes Issue with Louisiana Attorney General’s Characterization of Recycled Parts The Automotive Recyclers Association (ARA) recently sent a letter to Louisiana Attorney General James D. “Buddy” Caldwell responding to what it calls “mischaracterizations and disparaging statements” made about recycled automotive parts. In public comments related to a recent lawsuit filed by the Louisiana attorney general’s office against State Farm for allegedly steering consumers to direct repair providers who must comply with insurer requirements for replacement parts, Attorney General Caldwell was quoted as saying: “In some cases, we’ve found that these parts are nothing more than used junkyard parts.” The ARA believes the attorney general’s statement leads consumers to believe that salvaged/recycled automotive parts are unsafe and inferior to new OEM parts. ARA’s stance is that: Recycled OEM parts meet OEM requirements Recyled parts are OEM parts, designed by the OEM and built to meet the OEM requirements for fit, finish, durability, reliability and safety The ARA says Attorney General Caldwell calling recycled parts “junkyard” parts is a mischaracterization and “does a disservice to consumers in Louisiana by seeking to limit their access to safe, affordable and environmentally friendly automobile repairs.” In the Sept. 8 letter, ARA CEO Michael E. Wilson pointed out that the West Virginia Supreme Court of Appeals recently affirmed the use of salvage/recycled Continued on pg. 106 www.bodyshopbusiness.com 11
Publisher’s
Perspective It’s SEMA Time Again! nother SEMA Show is upon us. It’s hard to believe it’s that time of year already. With a very successful NACE behind us, it’s time to travel to Las Vegas for a week packed with everything automotive. The combination of SEMA and AAPEX makes for a jam-packed automotive gathering, and I’m sure this year will be no exception.
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The good part about traveling to these shows is that they offer everything an automotive professional or hobbyist could want. If you’re a car enthusiast, SEMA has all the shiny stuff your heart desires. If it has been thought about for a vehicle, it will be there. On the collision side, the Society of Collision Repair Specialists does a very nice job of offering collision-related topics and training for you while you’re there. To see a full list of these sessions, check out pgs. 86-98 of this issue. Our industry is changing at unprecedented speed. Never before has it been so important to have the proper equipment and repair
techniques in your shop. Today, it truly is: Stay up to date or get left behind. Gatherings like these are an excellent way to see the latest and greatest equipment and procedures. AAPEX features all the vendors on the mechanical repair side. Distribution and manufacturers will be well represented, showing the latest parts and technology for the repair channel to see. The associations offer excellent training for attendees as well. If you’re going to be in Vegas for one of these two events, please be sure to stop by one of the Babcox Media booths. We have five booths at the shows and would love to hear about your business. We hope to see you there!
S. Scott Shriber, Publisher Email comments to sshriber@babcox.com
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Clark’s
Corner
By Mark Clark
A Dealership Body Shop
Manager’s Woes often have former dealership body shop managers in my educational programs. Recently, I had three current dealer shop mangers in my audience for two days. I have an opinion (no way!) on why less than 40 percent of new car dealers have a body shop. Part of my explanation includes a couple of illustrative stories. I have this standard patter about why “Joe” (as I point to the nearest former dealer shop manager in my audience) no longer works there, without asking him. The story goes like this.
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A Woeful Story » I predict Joe quit his job because the dealer principal (or fixed ops guy) promised Joe he would be paid a nice bonus on top of his monthly salary if he did well, increased sales, lowered cycle times and showed a profit. Typically, that bonus was calculated from the gross profit the body shop would generate each month. The first few months Joe had the job, there was little gross profit. It took awhile as he figured out the different techs’ skills and work attitudes, the correct parts procurement process and all the back-end paperwork to satisfy everyone from the insurers to the payroll clerk. But finally, he had the month he had been working toward, went home and told his significant other to expect a big check. When the check arrived, there was no bonus. It turns out the dealer needed a new snowplow, and they charged the whole thing against the body shop – in one month. Hard worker that Joe is, he went forward with a smile, stayed late and worked until the shop had another banner month. Positive that this time there was finally a nice check coming to 14
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him, he once again told his spouse. Only there wasn’t. That month, the entire fee for the “customer service” consultant (who the dealer hired to improve everyone’s attitude about working there) got charged against the body shop. So Joe quit and became a former shop manager.
No Bonus For You » This past week, as I reached the snowplow part of the tale, one of the current shop managers (who had only been at the job a few months after the former guy quit) said that last month he had record shop sales. And on the P & L, his rent went from $3,000 (as all prior months had been) to $9,000. As a result, there was little gross profit to be shared. No bonus for him. I’m saddened that this parable is so common that I can tell it anywhere in the country and have several folks in the seats exclaim, “That’s me!” I contend this scenario is part of why car dealer principals often don’t like body shops. Once the successful shop manager is shafted a couple of times, he quits. The dealership then takes their best tech (just like my guy from last week) and makes him the shop manager, which is a two-pronged mistake. Why? Because not only did they lose their most productive repairer, he often doesn’t have the people skills or financial skills to make a good manager. But in my oft-told story, I predict that he rises to the occasion (just like my guy did), does a fine job, increases body shop sales and profits, but finally quits when his rent is tripled or the entire parking lot is resurfaced and charged to the body shop’s account. Having lost two capable people, the dealer now appoints yet another new manager. In my experience, that guy was often the clean-
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»| Clark’s Corner |« up kid six months ago (only a slight exaggeration). But with the original manager and his hard-working replacement long gone, he’s now the new shop manager. Not only does he not have the original guy’s people skills or the second guy’s technical skills, he’s bewildered every day by the decisions and issues a body shop manager must solve. As a result, the body shop loses money every month, gets dropped from their DRPs because their cycle time is so long and loses the good techs to other shops. Finally, the dealer principal says enough and closes the body shop. “Who needs all those headaches anyway?” he says.
Absorption » Here are some things I find the average new dealer doesn’t fully understand. They see that the door rate in their service department is $95 per hour and there are few
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problems with scheduling the work, repair quality or accurate delivery times when the mechanics do it. But their body shop is at a $44 per hour and is fraught with problems and unhappy insurance companies, customers and employees. “To heck with it,” they say, and decide they’ll take a referral fee and all the repair parts sales from some local body shop operator and close their own. Absorption is a term dealers sometimes use to measure one element of their financial performance. It refers to the ability of their fixed operations (parts, service and body) to generate gross margin dollars that would all be applied to the dealership’s total overhead, absorbing it. In a perfect world, the fixed ops’ gross profits would cover 100 percent of the dealer’s operating costs so that every single dollar on a new car sale was net. Real-world absorption percentages
October 2014 | BodyShop Business
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are 60 to 80 percent. But if the goal is to generate the most fixed ops gross profit, wouldn’t it be better to have three business engines generating profits? Without collision, the dealer is left with just parts and service to carry the backend gross profit load. The dealer probably also didn’t understand that the labor time database the body shop used had many more opportunities to perform the tasks in much less than the allotted times. At 150 percent production efficiency, each of those $44 labor hours actually pays $66 at a healthy margin. Plus, you can add in the gross profit on the crash parts sale. Selling crash parts leads to a related discussion of the adversarial relationship many dealers have between their parts departments and body shop managers.
Parts Dept. vs. Body Shop » Wherever your shop stands today on
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»| Clark’s Corner |« the best and speediest mix of repair and replace, selling new crash parts can be a profitable solution. Unfortunately, in many dealers, their captive body shop is the largest single customer of the parts department but gets treated worse than anyone else. I’m unclear why this seems so prevalent as I travel around the country.
Another bone of contention, besides the slow and haphazard service from the parts department, is the gross margin from selling the crash parts. To which department should it go? If the parts department manager keeps all the gross profit on the sale of all crash parts, the body shop manager has little impetus to replace
instead of repair. Typically, the manager’s bonus is based on gross profit earned, and if all crash parts used during the repair are never included, smart managers repair more often and replace less. This risks both a loss of easy gross profit dollars and a potential slowdown in cycle times. It’s all the dealer’s money, whether generated in the parts department or the body shop. I’ve been part of discussions when a new body shop manager wants to change the existing policy on crash parts gross profits. Typically, the shop manager has been at the dealer a few months and the parts manager has been there a few decades when we meet with the dealer principal or fixed op director. Sadly, the long-tenured parts guy often wins these battles. Smarter dealers make sure there’s a way for the body shop manager to keep some of the gross profits on the crash parts they sell and replace during repair.
Built-In Advantage » New car dealers have a built-in advantage when Mrs. Smith is looking for collision repair every seven years. Ours is a unique business and has many twists and turns that aren’t clear to all car dealer principals. They just want their mechanical service stalls filled every day and steady sales of new and used cars. Collision seems like more trouble than it’s worth. New car dealers I visit that are paying generous wages, acting honorably and treating the body shop like a profit center are enjoying the results. The person in the dealership who can make collision truly a priority is in the big office up front. If you have their ear, make sure he/she gets the whole story on collision repair. BSB Mark R. Clark is owner of Professional PBE Systems in Waterloo, Iowa. He’s a popular industry speaker and consultant and is celebrating his 26th year as a contributing editor to BodyShop Business. Circle 18 for Reader Service
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Web Presence
Management
By Mark Claypool
Specs for
Social Media Accounts y now, we should be well past the things I heard as recently as two years ago: “Social media is just a fad”, “No one will follow a body shop on Facebook,” and “I don’t care what you had for dinner, and I’m sure you don’t care where my wife and I went for the weekend either.” These were the kinds of things people would say to me without a full understanding of the transformational change social media was having on society and the fundamental shift in the way we communicate with each other. If you still feel that way, then the social media tidal wave has likely washed over you and you don’t even realize it.
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Washed Away » Washed away by this social media tidal wave are opportunities for brand exposure, to engage people in meaningful, fun conversations (not about your dinner or their dinner or anything like that) and most importantly to fix cars. If you’re an independent and have been keeping a wary eye on the consolidators in the industry or are actively competing with them, you need to know that they all have good websites and are participating effectively with social media. Why? Because the frontier of social media has been fully discovered and is now being developed. And profits follow.
The Profitable Ones » I always like to look at what the big, well-established, 20
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profitable companies are doing. They always have done their research and aren’t burdened by the “that’s the way we’ve always done it” mentality. They hire people to keep them on the cutting edge. Consider Ford, for example. They were the only domestic auto manufacturer that didn’t take a federal bailout during the recession, and still they remained profitable throughout. Ford credits social media for a large portion of their success and spends a ton of money on it. That’s good enough for me. How about you? You may not have the time to do the research or have the resources to hire someone to keep you on that cutting edge, but you can certainly learn from others. Social media is a part of every major business you come across. And if it isn’t already a part of yours, it needs to be. If you’re doing social media, are you doing it effectively? Are your accounts set up correctly? Are you posting often enough? Are you posting content that’s graphic and engaging to your target market area? The guide on pg. 22 has details on each of the main social media platforms that you should find helpful. Cut this out or print the online version and keep it handy for future reference. But keep in mind that these things change frequently. To see the latest, most up-to-date information at any given time, visit: http://www.optimaautomotive. com/social-media/.
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»| Web Presence |« Social Network
Business Purpose
Cover Photo
Profile Picture
Other Image/Picture Specs
Post Frequency
Google+
Business to consumer outreach, branding, special offers, Google SEO boost
Maximum 2120 x 1192 pixels, minimum 920 x 520
250 x 250 pixels
Post images ideally 497 x 373 pixels, up to 2,048 x 2,048 pixels
Post at least once every 48 hours to be most effective. Up to 100,000 characters, but we wouldn’t recommend that!
Business to consumer outreach, branding, special offers
851 x 315 pixels
180 x 180 pixels, actually displays at 160 x 160 pixels
App images should be 111 x 74 pixels. Timeline image size is recommended to be 1,200 x 1,200 pixels and display on the timeline as 403 x 504 pixels.
Weekly at minimum, more if possible. 250 characters or less get 60 percent more engagement. Posts with pictures get 104% more comments, 53% more “Likes” and 84 percent more clicks.
Business to consumer outreach, branding, special offers, instant updates
1500 x 500 pixels – Formats: JPG, GIF, PNG
400 x 400 pixels
In-stream pictures must be 440 x 220 pixels
No less than twice a day, more is better. 140 characters max, less if you include an image.
YouTube
Business to consumer for informational purposes. Streaming of video to website aids Google ranking potential
2,560 x 1,440 pixels, called “Channel Art”
800 x 800 pixels, called a “Channel Icon.” Desktop banner is 2,560 x 473 pixels
Video dimensions 2,560 x 1,440 pixels
As often as you have a video to share. Video title can have no more than 100 characters. The video description can have as many as 5,000 characters.
Business to business, entrepreneur networking
For community page, 646 x 220 pixels
100 x 60 pixels for horizontal image, 50 x 50 for square image. Up to 2MB
Square logo 50 x 50 pixels, products/services images 100 x 80 pixels
Weekly blog post is recommended but not as essential as other social media posting.
Business to consumer, brand authority, positioning business as an authority with useful/educational information for followers, driving traffic to your website
N/A
600 x 600 pixels but will be cropped to 165 x 165
Pictures from any website, except Facebook, can be pinned
Cannot message users. Post as often as you have time for and interesting/educational images to share. Can link images to Facebook, Twitter and Google+. Good analytics that show how visitors interact with pinned images beyond your website.
Business to consumer, brand authority, positioning business as an authority with useful/educational information for followers, driving traffic to your website
N/A
Any size can be uploaded, but will be cropped to 110 x 110 pixels
2048 x 2048 pixels that can be sized down
As often as you have time for and interesting/educational images to share
So which ones should you participate in? Must you participate in them all? No. I recommend Google+, Facebook, Twitter and YouTube for your business and LinkedIn for you personally. Do these well and the dividends will come back to you over time. Optima will be doing a series of free online workshops on social media during the month of October, so check out www.optimaautomotive.com for more details. BSB
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BSB Contributing Editor Mark Claypool has more than 30 years of experience in the fields of workforce development, apprenticeships, marketing and Web presence management with SkillsUSA, the I-CAR Education Foundation, Mentors at Work, VeriFacts Automotive and the NABC. He is the CEO of Optima Automotive (www. optimaautomotive.com), which provides website design, SEO services and social media management services.
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COVER STORY
Go Get That
Work!
Too many of us wait for insurers to bring us work when we should be hitting the pavement. Here are some things I did that brought us more jobs. By John Morgan
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ll of us in the collision repair industry have gotten a little accustomed to the work coming to us. With all the insurance companies sending work right to our front door, it has made all of us just a little lazy. Whatever happened to the days where we kept
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our shop clean, wrote a great estimate and actually closed the deal by selling our services? We all have great shops with techs who do excellent work, so all we have to do now is get out there and sell ourselves and go get that work!
Getting On a DRP Âť There are many ways to get on a DRP or get more DRP work, but first and foremost you have to make customers and insurance companies want to bring the work to you.
COVER STORY » Go Get That Work!
our shop busier. Going out and beating the pavement sure makes me feel a whole lot better than just sitting in my office listening to all the flatrate techs hungry for work but having nothing to give them.
Agent Visits » Visiting agents is a great way to accomplish a couple of things such as finding out their perception of your reputation and quality, thanking them for the work they’ve already sent you and taking the opportunity to ask for more. By doing it in person, you can shake their hand, look them in the eye and tell them if they give you a chance, they won’t be disappointed. I used to be very disappointed when the agents wouldn’t give me the time of day. I could never get by the person at the front desk to get the chance to introduce myself. But I no longer worry about that because most of my work referrals come from the young man or woman at the front desk anyways. They’re the ones processing many of the claims start to finish, so to me they’re the most important person in that office.
Insurance companies are no different than you and me; if they send us a repair opportunity and everything goes great and customers don’t ring their phone off the hook complaining, they’ll want to send more work to you. They’re not sending you the work to help you; they’re sending it to those shops that make their life easy. If your shop is already doing these types of repairs and you’re still not busy enough, maybe you can try a couple of things I’ve done to make
CE Classes » My territory manager from PPG had been trying to convince me that the continuing education (CE) classes through their MVP program would help me get the results I was looking for. I was hesitant at first, but he said he was sure it would get us to the next level. One of the things I found so appealing about CE was that I was no longer going to have to go to the agents asking for something; I had something I was excited to give them. The other thing I was excited about was getting those agents out of their office and into my shop, where I could show them all of our state-of-the-art equipment and how good we really were. Once you gain the trust of the agents and they start to feel comfortable
with you and your guys, you’re now in the driver seat.
Hail Yes! » We had a hail storm hit our area one Memorial Day, which was huge for us in Pittsburgh because we can see a shift of about $300,000 a month from winter to summer. Being that busy at a time when we were usually a little more than average felt great, my guys were happy and, with my pay based on commission, I certainly wasn’t complaining. With the aggressive guys I have, they worked early till late and weekends too until we finished all the work within our reach. Because I had the email addresses of a few hundred agents, I decided to send out an email blast thanking them for all the work and letting them know we were back to normal scheduling. A manager from a shop a town over from me who was hit harder than we were by the hail was bragging that he had jobs scheduled out for a few more months, but we all know customers are impatient. And no matter how good you are, they’re not going to wait around for you to get to their automobiles. In my email, I just happened to mention that if they had any customers who were unhappy about the long wait, I could do the work right now if they could stand taking their car to a shop that was a little farther away. I happened to run into a body man from that shop later, and he said they had a large pile of parts from customers who never showed up for their appointments. Gee, I wonder where they got their cars fixed? The lesson? If you’re not going to be aggressive and go after new work or at least protect the work you already think you have, someone who doesn’t want to be broke will be happy to go do that work for you.
Real Motivation » One of the agents who attends all of my CE classes www.bodyshopbusiness.com 25
COVER STORY » Go Get That Work! sent me the craziest email the morning I was going to teach one. She apologized for not being able to attend my class because she had gotten into a car accident and wanted to take care of it that morning. I kind of used that as a learning tool during that class and made light of the fact that even though I liked all the agents very much, I did have another motivation for teaching them aside from furthering their education: getting more work. If just the agents’ cars were all I got from conducting CE classes, that would be more than enough reward by itself, but add that to all of the client cars they send me and we’re very happy with our results.
Big Growth » I am no expert by any means, but with all of the things I’ve talked about in this article, I know one thing to be true: in a time
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Most of my work referrals come from the young man or woman at the front desk of the insurance agent’s office.
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of uncertainty and a terrible economy, my guys and I were able to grow 25 percent from 2008 till now – compared to the average body shop losing 1 percent in that same time period. With 23,000 square feet and 37 employees, I’m proud to say we racked up more than $8 million in sales in 2013. Maybe one day I won’t be as hungry as I am now to keep us as busy as we are, or the pace may get to a point where it seems impossible to control, but that day isn’t today. I work for a very aggressive family, and I’ll fill any addition they put on to my existing shop or I’ll run any new shop they want to buy or build in the future. I welcome any and all new challenges! BSB John Morgan is the manager of Bowser Auto Body in Pittsburgh, Pa.
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Buying
Tips
Campbell Hausfeld
Air Compressors Atlas Copco For collision repair facilities, it’s imperative to choose an air compressor that delivers 100 percent oil-free compressed air. The presence of oil in compressed air prevents the adhesion of the paint to the car surface and causes beading, which negatively affects the quality of the finish. Only ISO 8573-1certified class zero oil-free compressors provide clean, 100 percent oil-free air, virtually eliminating any risk of oil contamination. While the use of water-based paints continues to increase for spray painting applications, they’re also extremely sensitive to the presence of silicones. Silicones in the assembly lubricating oils will migrate into the compressed air stream, creating imperfections in the paint finish. Filters that are designed to guarantee 100 percent silicone-free air greatly reduce the risk of craters and other imperfections from forming in the finish. Class zero oil-free air compressors plus silicone-free filters ensure the highest quality compressed air possible, which increases productivity and cost savings for collision repair facilities.
FS Curtis The most important thing for any body shop is to have a reliable source of compressed air…and a back-up source as well. One of the most important things in this regard is to ensure that the compressor matches the air demand profile. If you’re only going to use your compressor infrequently or in fits and starts, then a reciprocal may be
There are three important factors collision repairers should consider when buying an air compressor: 1. What application do you need compressed air for? Your application will dictate CFM, HP, max PSI, tank size and air quality. Refer to all the tools you would be using at the same time, and make sure your compressor is supplying enough to handle that work load (size larger if you expect to grow your business over the next few years). 2. Where are you going to locate your compressor? Your location determines what power supply is available, how loud the unit should be and whether it needs a weatherproof enclosure. 3. How much do you want to spend on your compressor? Along with the first two factors, you can choose a compressor that provides the right amount and quality of air that fits within your budget.
the best fit. If you think you’ll have a consistent demand and value quiet operation, then a rotary may be the best bet. Either way, clean air will be extremely important. This means that it’s almost as important to select the right filters and drying equipment as it is to select the right compressor, especially for the paint booth. The UltraPack reciprocal or tank-mounted SEG coupled with a DA system is a perfect application for paint booths, whereas a reciprocal UltraPack with a RNP refrig or an UltraPack SEG are ideal for general shop air.
Kaeser Compressors Ever have issues with water, oil or dirt in compressed air lines? Fisheyes or other paint flaws from wet, dirty air are expensive – wasted labor, paint, abrasives, etc. Bad air quality also reduces pneumatic tool life. Body shops need dryers and coalescing filtration, and the compressor temperature heavily influences how effective they are. Hotter air holds more water. A 20°F rise in temperature doubles the ability of air to hold moisture in a vapor state. Rotary compressors typically discharge air 100 to 150°F cooler than pistons, making dryers much more effective in condensing and removing moisture. Hotter air may also increase oil carry-over. Typically, piston/reciprocal compressors start with 10 to 20 ppm oil carry-over, which increases as the rings wear. High discharge temperatures can decrease filter effectiveness. Rotary compressors typically have only 1 to 7 ppm oil carry-over, which is more easily captured due to the low discharge temperature. 28
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TECHNICAL
in the Paint Shop There has been lots of buzz over the F-150 and aluminum, but hardly any talk about what the paint shop needs to know. Although the refinish process will be similar, there are things to consider. By Carl Wilson
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here has been lots of buzz about the 2015 Ford F-150 being largely comprised of aluminum. And rightly so! It’s likely that we’re all going to see a fair share of these vehicles in our shops. However, this is not brand-new technology; we’ve worked with a lot of aluminum car parts for many years.
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Be that as it may, it’s likely we’re going to see more of the stuff in the not-too-distant future, thanks in part to the C.A.F.E. standards as well as the abundance of aluminum. It’s the most common metal on the planet; in fact, it’s the third-most abundant element. That’s not news these days; you can read about that
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TECHNICAL » Aluminum in the Paint Shop on any bubble gum wrapper. What is news is the upswell of approved repair equipment on the market. There’s going to be less remove and replace and, naturally, more repair. And the repair process is different for aluminum than steel, just as it’s different for fiberglass. And while
we will no doubt adapt to aluminum, just as we did for fiberglass, there are genuine concerns that go far beyond getting “itchy.”
Corrosion » Corrosion. Galvanic corrosion. Electrolysis corrosion. Dis-similar metals corrosion. What-
ever you call it, there’s no sacrificial zinc anode we can introduce to render cross contamination inert. Prevention is the key. By now, we’ve all read and re-read the need for a clean room, separate dedicated tools, exhaust systems, etc. There are also health concerns, but if we’re already hitched up and are on the proper personal protection equipment (PPE) wagon, then those health concerns can be negated. Not to be taken lightly, excessive aluminum absorption, whether by dust or fume, has been linked to cognitive degeneration and brain disease in some studies. I would take it seriously.
Paint Shop » Now, back in the paint shop, there are things for us to consider. To piggyback on subject matter you’re already familiar with, you need dedicated tools, but not everything of course. You don’t need dedicated spray guns, for example, but you do need dedicated sanders and blocks. Furthermore, you must maintain a quarantined environment in an effort to prevent fraternization between the metals. I doubt it would lead to a door falling off its hinges if cross contamination happened in the paint shop, but it will lead to paint failure. And I assure you, down at the “forensics lab,” if you file a paint warranty claim that stems from this, they’ll uncover poor and improper work practices that will void any warranty. So, check with your jobber or supplier and invest in another mobile work station/cart that’s strictly “aluminum.” Get everyone involved, educated and up to speed. Aluminum refinish failures, like all refinish failures, are avoidable.
Refinish Process » Presuming we’re all on the same page with understanding the need to isolate these two siblings, aluminum and steel, the refinish process is remarkCircle 32 for Reader Service
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TECHNICAL » Aluminum in the Paint Shop ably similar. Clean, abrade, clean, condition/etch, prime/seal and paint. Any questions? OK, perhaps that’s oversimplifying it, for there are substratespecific products that must be utilized to ensure success. If we consider a new OEM part first, not much changes. You can prepare the part according to your specific paint line practices and proceed with sealing, provided you haven’t “cut-through” the e-coat and exposed the aluminum. In most instances, minor cut-throughs on steel panels can be safely sealed over. However, you’re going to have to apply an etch primer to cut-throughs on aluminum panels prior to sealing. The good news is that you can use a 1K aerosol product, being mindful of flash-oxidation and etch-prime immediately after abrading and cleaning. Keep in mind, though, that a 2K etch primer is superior. Larger areas of bare aluminum will require a different cleaning approach. First, utilize a wax and grease remover to eliminate any surface contaminates. Minimize sand scratch patterns to a 240 or finer grit on your DA. Next, use an aluminum-specific metal
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1.
2. Proper procedures must be followed regardless of substrate to ensure success. Here, the process starts with chemical stripping (1-2).
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TECHNICAL » Aluminum in the Paint Shop conditioner/cleaner, according to the manufacturer’s specifications. When rinsing off the conditioner with water, look for the water to “sheet off” as opposed to beading or channeling. This is known as the “water break test,” and a properly cleaned panel will sheet the water. Beading or breaking indicates a presence of wax or grease. Dry thoroughly and apply an aluminum-specific metal conversion coating. This will stabilize and modify the surface while offering a layer of corrosion protection. Do this immediately after drying, as aluminum will oxidize/corrode rapidly. The conversion coating will typically have fantastic corrosion resistance and adhesion properties. In many cases, it can be directly sealed or primed over, depending on the nature of the repair, but again, the use of a 2K etch primer prior to sealing or priming will provide a film build with greater integrity.
Bare Steel » I know from firsthand observation
3.
4. Sanding (3) and (4) primer application.
that not all painter/preppers are addressing the issue of bare steel properly. I believe the uptick in aluminum education presents an opportunity that
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TECHNICAL » Aluminum in the Paint Shop can be leveraged into a greater awareness and understanding of flash rusting, proper cleaning, conditioning and coating of steel as well. As stated earlier, the standard operating procedures surrounding aluminum and steel preparation and coating are surprisingly parallel. It’s those initial products and coatings that will vary, so talk with you jobber and tech reps now in anticipation of the inevitable. Get
5. The finished product.
educated and prepared! Don’t wait until you have an aluminum vehicle or part on the property before ordering the proper products. Be proactive in both education and product use, which will pay off through uninterrupted production.
Another Opportunity » Lastly, the galvanic corrosion is real, and the potential health hazards are real. With what we know regarding these two subjects, there is no reason whatsoever for either of them to pose any kind of challenge or problem. The information is here. The tools are here. The educators demonstrating proper procedures are here. The industry has risen to the ever-changing challenge. It’s up to us, individually as well as collectively, to ensure we’re performing qualified and safe repairs. In all honesty, I suppose there is no aluminum conundrum at all, simply another opportunity. BSB Carl Wilson has been painting for nearly 30 years, with formal training from the GM Training Center, ASE, I-CAR and multiple product and color courses. He currently works as a technical rep for Hi-Line Distributors in Oahu, Hawaii. He can be reached at carl@refinishexpert.com.
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TECHNICAL
A self-piercing rivet gun is one of several tools shops that plan on repairing the 2015 Ford F-150 will need.
Rivet Bonding Comes Full Blast Now that rivet bonding is in the mainstream with the Ford F-150, it’s time for shops to look into training and equipment for this repair process. By Mitch Becker
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y now, most of you have heard the news that Ford has mainstreamed rivet bonding with the introduction of the 2015 F-150. This has forced many shops to look into some new equipment, such as self piercing rivet guns (or SPR guns). The cost of this gun has many shop owners shaking their heads and wondering if it’s worth buying. I can’t answer for you or your shop, but as a technician who plans on working on Ford and
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TECHNICAL Âť Rivet Bonding Comes Full Blast Rivets become the primary mechanism during a crash event when the adhesive would normally peel.
other aluminum vehicles, the SPR gun is a necessary purchase.
Mainstream Âť Although vehicle manufacturers such as Tesla, BMW and Jaguar made rivet bonding a specialized process, the introduction of the F-150 brings the SPR gun and rivet bonding to mainstream repair. Automobile manufacturers have historically used multiple squeeze type resistance spot welds (STRSW) during assembly. Today, consumer demand has driven automakers toward stiffer and quieter vehicles. Weld bonding or STRSW and adhesives used together have met many of these demands. The success and use of adhesives is becoming more widespread. The drawback of adhesive only is they typically have poor peel strength, which compromises vehicle crash performance. This requires a mechanical attachment to compensate. This brings rivet bonding to a whole new light. As vehicle manufacturers look to hybrid vehicle construction to decrease weight in new vehicles, rivet bonding makes some possibilities a reality. Traditional fastening methods, such as riveting by itself and welding, are often inappropriate for joining dissimilar materials. Although rivet bonding is not a new technology, it has been a littleused process until recently. BMW, Jaguar and other vehicle manufacturers used rivet bonding to join a steel structure with an aluminum structure. The success of bonding these two dissimilar metals together has led the way to new possibilities. The Process Âť In the rivet bonding process, the adhesive is the primary joining mechanism providing the stiffness and noise, vibration and harshness characteristics. The rivets become the primary mechanism during a crash event when the adhesive would normally peel. To understand some dynamics of how it works, rivets alone can hold
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TECHNICAL » Rivet Bonding Comes Full Blast
Self-piercing rivet removal kits hold all the contents needed to make repairs on the F-150, which is assembled with over 2,200 SPRs.
two metals together. If we were bonding steel to steel, movement and fatigue along with corrosion would be issues. If bonding two dissimilar metals, we would have to include galvanic corrosion of metals as an issue as well.
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Rivet-only disadvantages include: 䡲 Rivets can gradually loosen under extreme vibration and cause panels to rattle 䡲 Rivets cause point stresses, which can lead to fatigue and cracks 䡲 Rivets are time-consuming and expensive to use 䡲 Rivets add significant weight and normally need heavier gauge metal, which again adds weight
Structural adhesives offer many benefits, which can overcome these problems. They include: 䡲 Better distribution of stress and reducing the possibility of fatigue 䡲 Can both seal joints and bond materials for optimum corrosion protection
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䡲 Protect contact of dissimilar metals 䡲 Don’t gradually loosen 䡲 Cost effective and fast to apply Compared to joints made only with rivets, rivet bonding offers additional benefits such as: 䡲 Continuous, leak-tight joints 䡲 Higher-strength joints 䡲 Increased joint stiffness 䡲 Improved peel and impact resistance, improving crash characteristics There is one other factor that must be considered: heat, the Achilles heel to many construction materials. Rivet bonding allows for a cold joint process which negates the adverse heat effect on materials – although some materials do allow for limited heat during construction and repair. But the rivet bonding process does not cause heat issues.
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TECHNICAL » Rivet Bonding Comes Full Blast Not So Easy » Although it all sounds easy, there are some things that repair centers need to be aware of. Rivets sound easy, but there are procedures and disciplines that must be followed. Vehicle manufacturers’ instructions must be followed. Although the repair procedure may be different from the factory build, deviation from instructions could be a source of liability and result in warranty issues or injury to a valued customer. Rivet bonding procedures will vary in the use of adhesives. The preparation of mating surfaces would be an example. The Adhesive Bonding course, along with ALI01 and FOR06, are excellent sources for information. A factory may use rivets, clinches, bolts, welds and/or a version of threaded fastener called a flow drill screw. Knowing the rivets or fastener
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be bonded. Communicate with technicians and consult manufacturers’ guidelines to see which is required for the repair process.
Rivets come in all types: self-piercing, solid and blind such as hemlock and monobolt. (Photo courtesy of I-CAR)
to be used for repairs is critical to being sure all parts will correctly reassemble. A gasket may not fit over a rivet with a large protruding back. Be sure that the material the rivet is made of is what is required for strength and compatibility. Using only the recommended fasteners is the best practice. Some rivets will require a hole through two or more pieces to be bonded. SPR rivets press through metals to
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Rivet Types » The most common rivet being used for newer vehicles, particularly aluminum ones, is the SPR. This steel fastener has a tin/zinc coating to prevent galvanic corrosion. The rivet pierces the top sheet and forms within the lower sheet but does not penetrate it. This requires the use of a special tool that requires access to both sides. The advantage of this tool is it also can remove the SPR, although this again also requires access to both sides. Once the rivet is removed, there will be a hole in both pieces. This may require a different rivet to reassemble. There is no hole when using SPR. Another rivet would be a solid
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TECHNICAL » Rivet Bonding Comes Full Blast rivet, which goes through a hole and is pressured to fit into an opening. The most common is a shouldered rivet to 100deg. The hole must be dimpled or recessed to the same for a flush fit. A press with built-in bucking bar or pneumatic tools such as an air hammer and bucking bar will be used to make a bucktail on
the backside of the rivet. Access to both sides is a necessity. Blind rivets such as hemlocks and monobolts are used when access to the backside is limited. The hemlock is a rivet that pulls two panels together. The hole is a required diameter and is not loose when the rivet is installed. Oversized holes will re-
quire the monobolt, which expands radially to fill the hole and seal the panels. Both require a hole through both panels This is a simple explanation of the rivets and their uses. I encourage all repairers to take the I-CAR classes to learn more. Removal and installation concerns are a whole different article. I wanted to give a shop manager or owner some simple things they must know and impress upon them that they must make sure all technicians follow the procedures. As with all new things, never assume your techs know what to do. Follow up and verify all expectations.
Small Details » With more vehicles made from a variety of materials slated for construction, rivet bonding will become more common. Knowing procedures and where to find training is important to shop success. When working with aluminum or other materials that have special precautions, follow those precautions diligently. Sometimes the smallest detail can create failure. BSB Mitch Becker is a technical instructor for ABRA Auto Body & Glass. Contact him at (763) 585-6411 or mbecker@abraauto.com.
Keys to Successful Rivet Bonding 䡲 Know where to find instructions, be it from the manufacturer or another OEM data source 䡲 Follow instructions 䡲 Use fasteners provided (many are supplied with the part) 䡲 Know your rivets 䡲 Panel fit is crucial; like welds, there’s no room for error 䡲 Have the proper tools 䡲 Use the correct adhesive 䡲 Prepare all mating surfaces according to the manufacturer 䡲 Wait/cure time Circle 48 for Reader Service
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MSO
Hitting for the Cycle These MSOs now “get” cycle time and have implemented processes and procedures to keep the number competitive. By Kristen Hampshire sking the question, “Why are the cars waiting all the time?” prompted a decade of process improvement at Craftsman Auto Body in Leesburg, Va. About 10 years ago, the shop hired its first lean consultant. Paul Krauss, president
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and CEO of the third-generation family business, said the company was “plugging away fixing cars well, and we thought we did everything right.” Well, it turns out they didn’t know what they didn’t know. “I didn’t ‘get’ cycle time over a decade ago,” Krauss says, noting that the company cut cycle time in half after bringing in an outside profes-
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The Huron B10 AirSystem’s extremely low maximum 55-amp draw enables installation in single-phase locations where previously uneconomical or impossible.
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MSO » Hitting for the Cycle sional to analyze this key metric and tease out the efficiencies of every component in the repair process. Ten years ago, the company’s average cycle time was about 12 days, matching the industry average at the time. Today, the cycle time across 11 stores is 6.6 days. “We did touch time studies and asked, ‘Why are we waiting?’ And while there were some external factors, most of the factors were selfinflicted,” Krauss says. “Either we weren’t expediting parts procurement or we had our blueprint process out of whack and there wasn’t urgency in the right departments. By and large, we took a look in the mirror and said, ‘Let’s do a better job.’” That’s the question shops must ask today to compete and win business from insurers, run a profitable business and satisfy customers – since
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cycle time is inextricably related to customer satisfaction.
Cash Flow/Profitability » Cycle time drives cash flow and improves profitability. More volume and faster turnaround translates to more revenue and quicker payment for the work. Cycle time improves the customer experience – people want everything yesterday, and so efficiency (coupled with communication) pleases consumers. And insurers are, as always, keeping a close eye on cycle time as they look to reduce costs and raise the bar on delivery time. Shops with fast cycle time and high CSI win business. “If you’re fixing cars faster than your competition, it’s definitely a plus,” says Joey Amodei III, manager at The Collision Centers of New York.
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Amodei says cycle time is “a tough balancing act,” with one insurer requiring a rigorous fourday turnaround. “And it’s not easy to sustain that. It really isn’t,” Amodei says. But as a DRP for five out of the six major insurers, Amodei says The Collision Centers of New York is held accountable for cycle time and is responsible for ensuring the utmost efficiency at every point in the cycle. That’s where measuring cycle time is critical to success. As the saying goes, if you can measure it, you can manage it. Cycle time is complicated with many influencing factors: technician efficiency, equipment and tools, parts, scheduling and quality control. Shops that are positioned for success are breaking down the repair process, measuring every component in the repair
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MSO » Hitting for the Cycle process and retooling areas that are a drag on cycle time.
Breaking It Down » The “whole” cycle time is the sum of its parts. Breaking down cycle time to analyze performance every time a vehicle is touched helps shops identify timesucks. The Collision Centers of New York tracks cycle time by every segment in the repair process. “This is the best way for us to see where the bottlenecks are and where we need to focus our attention,” Amodei says. Cycle time can be broken down to measure vehicle drop-off to estimate completion, parts order to received time, booth cycle time and so on. The Collision Centers runs daily, weekly and monthly reports for its three locations (soon to be four). “When we run these reports, we
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review them and we can drill down and see what we need to improve,” Amodei says. Krauss also breaks out components of the repair cycle to analyze performance, but he says his rental car company’s Length of Rental (LOR) report “is the cleanest way” to measure cycle time. “We can carve up the numbers any way we want, but we’ll end this month with about 1,000 rentals, and that gives us a really good-sized sample of what we’re doing to lower the expense for the insurance partner,” he says. The LOR report is a significant factor insurers consider. “If we’re talking about saving $80 to $90 a claim in rental car expenses [because of faster cycle time], that’s a big deal to any insurer out there,” Krauss says. Dick DeLaere, controller at Auto-
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body USA in Kalamazoo, Mich., measures cycle time based on total hours on a job divided by the number of days the vehicle is in the shop’s possession. That’s essentially a keysto-keys measurement, and the company’s management system tracks the numbers. Tearing apart the cycle reveals opportunities for improvement. At Autobody USA, cycle time is improved by pre-painting parts, DeLaere says. “We’ll order a bumper and prepaint so when the part comes in, it can be put on the car and the vehicle will go out in one to two days instead of three to four,” he says. Adding a combo tech has helped move smaller jobs through Autobody USA’s shops faster. Sometimes, a step can be eliminated from the process – the combo tech can do body work, prep the car and move it to the paint department.
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MSO » Hitting for the Cycle Afterwards, he can put back door handles or other components that were removed. Also, better blueprinting has been paramount to keeping cycle time in check, DeLaere adds. At The Collision Centers of New York, car delivery is under consid-
eration as solutions for decreasing delivery time. “We’re very drilled into our LOR report, so we’re looking for any opportunity where we can possibly bring customers’ completed vehicles back to them, take the rental back to our facility as a convenience to the
customer and cut one to two days out of the cycle time,” Amodei says. Extended hours are another option. “We have an arrival and delivery report where we can see the quantity of cars we take in on any given day of the week, and we can see the hot days where customers are picking up and consider extending our hours on those days – or extending hours on other days to push more cars out.” At Craftsman Auto Body, having too many vehicles on site was a problem. Plus, supplement percentages were lackluster and the parts expediting process was lagging. “We thought we were doing really well, but knowing now what I know today, we really weren’t doing that many things right back then,” Krauss says. The process is ongoing – it’s continuous improvement, Krauss adds. His shop analyzes reports to identify components of cycle time, then tackles one problem at a time, pinpointing the cause of the problem, developing processes, training the team and ingraining the process into the culture. Improving cycle time is a long-term commitment and culture shift, not a ticker on a to-do list, Krauss says.
Scheduling » Scheduling is also critical to improving cycle time. On a bad winter day, cars towed into Autobody USA may sit for a few days before an estimator can get to them, DeLaere says. “When you look at keys-to-keys cycle time, [cars sitting around] drag down your time,” he says, relating that the company works to keep open slots for “surprises” but there’s nothing easy about adjusting a schedule on the fly to accommodate tow-ins. Scheduling permeates cycle time, extending from drop-off to estimating to delivery. “It’s a balancing act,” says DeLaere. “And we find that one of the biggest deterrents to good cycle time is having too many vehicles on site, because Circle 56 for Reader Service
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MSO » Hitting for the Cycle a technician can only touch one vehicle at a time.”
Room for Improvement » Areas where shops can improve cycle time include blueprinting – spending more time up front to ensure a smoother repair process – and parts handling,
which is essentially the first step to a solid blueprint process. When a single parts order can be made – with no acceptance of orders that aren’t completely fulfilled – shops can avoid the explanation to insurers or customers that they’re “waiting on a part.”
Amodei says his company is holding a vendor meeting to express their importance in the overall business and in meeting cycle time requirements. “You need to have a strategy of ‘all-hands-on-deck,’” he says. “That means having all of our people on board, including and our partners and parts vendors. It takes a collective team effort.” At every stop in the repair process when a vehicle is touched, there’s an opportunity to improve the process. That’s the mindset progressive shops adopt, and a key to securing insurer business and staying competitive. “I would say insurers are probably leveraging off the better performing [shops], so if someone is faster, you either get better or pay for it,” Krauss says. Improving cycle time is not just for the auto body industry, Krauss points out. The concept applies to every service business, from hospitals to restaurants. “I think some shops haven’t realized that this is happening everywhere, not just in collision repair,” he says. “The consumers’ expectations are going up, and we have to be able to meet those.”
Sense of Urgency » Faster cycle time produces happier customers – and insurers who recognize the cost savings of reducing rental expenses. “Cycle time is important to insurers because they’re renting cars, and every day they have to pay for a rental is expensive to them,” DeLaere says. Is cycle time the most important KPI? Not necessarily. But it’s awfully hard to separate cycle time from other performance measurements, including customer communication and delivery time. There’s a direct correlation between cycle time and CSI score. Lower cycle time at Craftsman Auto Body helped retool the entire Circle 58 for Reader Service
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MSO » Hitting for the Cycle organization, and the faster turnaround can be credited for CSI scores today that exceed industry averages, Krauss says. Craftsman’s quality score is 9.7 out of 10, and its communication score with the Audit Checks National Average is 98 percent. “It’s not the extra things we do, but because we can turn around the cars faster,” Krauss says, noting that the company’s on-time delivery score is 94 percent. “We think that customers sense our urgency,” he says. “We measure all of those KPIs to make sure we aren’t pushing too hard or cutting corners, and I think all of this is related to developing a better process around throughput,” Krauss adds. “That ultimately makes the product to the consumer better.” BSB Kristen Hampshire is a freelance writer based in Cleveland, Ohio.
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Cycle Time Improvement Strategies The MSOs interviewed in this article mentioned all of the below as ways they’re working to improve cycle time: 䡲 Meet with vendors and other partners to discuss how they can help you with cycle time 䡲 Pursue training 䡲 Hire a consultant 䡲 Measure, measure, measure! 䡲 Utilize rental car company LOR reports 䡲 Pre-paint parts 䡲 Deliver vehicle direct to customer 䡲 Extend your hours 䡲 Reduce vehicles on-site (don’t take in more vehicles than you can handle) 䡲 Reduce supplement percentage 䡲 Expedite parts process 䡲 Improve scheduling 䡲 Blueprint the repair
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PERSONNEL
Addressing substance abuse among your employees first starts with having a policy stated in your employee handbook. By Jason Stahl
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ubstance abuse can be a tricky subject for a business to navigate. Add the fact that many states have now, for instance, legalized marijuana for medical purposes, and you may find yourself scratching your head over what to do if you encounter an issue with an employee. The first thing that is essential to have, according to human resources expert Daren Fristoe of The Fristoe Group, is a stated policy on substance abuse in your employee handbook. “It should be in your handbook as it relates to what substance abuse is,” says Fristoe. “I can’t remember an organization I’ve been a part of that didn’t have a substance abuse
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policy. And typically it covers both drugs and alcohol. Or they can just say ‘substance,’ and substance includes alcohol.” Steven Cesare, Ph.D., human resources consultant with The Harvest Group, agrees and says it starts at the top with executive management. “Do they want to do this or not, for the company, employees and the employee in particular. It would start with an administrative policy, which would then dictate the guidelines and expectations the company would follow through on in terms of substance abuse, whether it be a minimal program or maximum support.” Fristoe refers to substance abuse
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PERSONNEL » Tackling Substance Abuse (including drinking, selling, possessing or using controlled substances) as one of the “magic 10 or 12” violations stated in a manual (along with bringing a gun to work, stealing, etc.) that can result in immediate termination. “They’re put in the manual under ‘serious offenses’ where we can fire you immediately or put you under progressive discipline depending on the infraction,” Fristoe says. “If you have a handbook and have progressive discipline in it, and also define what happens when you possess on company premises, it could then become a criminal matter. It’s another layer of exposure an owner/operator doesn’t need.” Consistent enforcement of the policy is crucial, too, says Fristoe – with “consistent” being the key word.
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Further complicating matters is marijuana, which is being used medically by many people.
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“If I walk in and test positive and you walk in and test positive and the boss likes you and doesn’t like me, it doesn’t matter. You have to treat [employees] the same,” he says. “It’s always our problem. We have favorites because we’re human, and in a small business you typically have one to three relatives.” Fristoe also suggests having a “drug free workplace” policy following the Drug Free Workplace Act of 1988. “That’s another layer that says, ‘This is the company’s stance on drug and alcohol use.’” After establishing a definition of substance abuse and the company’s policy on it, the next step would be to address pre-employment drug testing in concert with the Americans With Disabilities Act (ADA). Most
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PERSONNEL » Tackling Substance Abuse
Treatment vs. Termination S
o if an employee is found to have violated a company’s substance abuse policy, is the company required to terminate them or allow them to seek treatment? It depends, Fristoe says, on what discipline your policy lays out. “If your policy has nothing in there about progressive discipline, meaning three strikes and you’re out, there are situations where you might only be suspended with or without pay depending on the company, giving you a chance to seek treatment. In my experience, most companies aren’t offering this. It’s a very harsh reality when it’s one strike and you’re out, but you have a real challenge protecting employees who have made this kind of mistake in the workplace. I’ve had situations where we suspended someone and then made them go home and then come back in and test and, if they were clean, they went back to work. It was documented and put back in the file. It wasn’t a consistent application, but at that company, that’s what we did.” Cesare believes the decision between treating or terminating is only made looking at the essential functions of the job. He says that a black-and-white solution would be nice, Continued on pg. 68
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PERSONNEL » Tackling Substance Abuse Continued from pg. 66 but the picture has become increasingly gray due to state and federal laws. “Can the employee perform the essential functions of the job? Second, is there any safety risk? If the company has government contracts and thus is part of the drug-free workplace, that would be another consideration,” says Cesare. “You’re given much more slack when it’s at your discretion rather than if it’s a federal contract where all your employees have to do X, Y and Z. Ultimately, it goes back to the employer and knowing what the laws and implications are so they can determine whether treatment or termination is or should be a viable alternative.” Fristoe agrees that the termination/treatment decision isn’t always cut-and-dried and can be complicated. Overall, he says that if you have a policy in place and the employee signed off on it and it was clearly communicated to them, although it may vary by jurisdiction, you have the right to terminate them. “However, there are a number of different layers here,” he says. “Maybe your jurisdiction says they have a grievance opportunity here. Maybe their employment manual gives them a grievance opportunity, meaning you can’t fire me but
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you can suspend me and we get to talk about it. Jurisdictions may vary and personnel policies may vary, but the general rule of thumb is, ‘These are the heinous crimes and offenses against the business that I’m going to walk you out for and I don’t care if you don’t think this is right because you have jeopardized me and the business.’ “If you get sued for wrongful termination – it happens – you’re in a defensible position if you’ve done all the necessary steps listed in this article up front.”
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PERSONNEL » Tackling Substance Abuse
Fristoe encourages random testing (something most companies don’t do) and a “one strike and you’re out” rule versus progressive discipline (three strikes and you’re out). companies, according to experts, conduct pre-employment screenings. “From that, a company could provide employee assistance programs for any employees who fall into a bad way,” says Cesare. The third step, says Cesare, would be to be aware of implications for performance management. “For example, if someone was a drug user, they would be described as being disabled, but you can’t really use that as part of a performance appraisal. You can only focus on a person’s job performance, not whether they were in a rehab clinic or have a history of substance use.” As far as testing people who have already been hired, Fristoe encourages random testing (something most companies don’t do) and a “one strike and you’re out” rule versus progressive discipline (three strikes and you’re out). Under the one strike policy, if you come in and test positive, you’re gone. “It sucks, but the owner/operator has to remember this is their primary asset, their livelihood and business – and livelihood of all those people who work there,” Fristoe says. “While it sucks for Tom or Sally or Billy who tested positive, you have to think bigger than that.” The nature of the work the company does also may factor in to the decision to conduct random testing. “Do you drag out editors or guys like me to do random testing? No. But if I have a bunch of people on the shop floor in manufacturing, I think you have to do it. It keeps people on their toes.” Fristoe says drug abuse is becoming more prevalent as the economy Circle 70 for Reader Service
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PERSONNEL » Tackling Substance Abuse continues its slow recovery. Thus, there are many people out there with a variety of challenges and issues that drive them toward substance abuse. Plus, they’re getting creative with pharmaceuticals versus illegal drugs. “All of a sudden, I have stuff
over the counter that will take me where I want to go,” he says. “And you’re turning these people loose with the keys to your office, keys to equipment, your checkbook, etc. This is a huge problem with huge exposure, so you need to take care of it with a clear, concise and con-
sistent policy that you inform your people of.” Further complicating matters is marijuana, which is being used medically by many people. “I’ve received several calls lately on medical marijuana cases,” says Cesare. “There are 20 states plus Washington, D.C., that have some type of liberal medicinal marijuana laws that are complicating companies’ interpretations of their substance abuse policies. The states are saying it’s legal, but the Fed, in terms of the Controlled Substance Act, still say it’s illegal.” Should a company seek out a professional for some of these murky or gray issues? Cesare believes so. “Go to a qualified human resources specialist. They can do some research and guide you in a pragmatic way about the laws in their state and federal jurisdiction, what are the proper procedures for drug testing, drug support, employee assistance programs or EAP, alcoholism awareness, fliers, posters, etc. Also, this person can integrate that EAP or substance abuse policy with other existing HR programs such as employee selection, training, development, compensation, etc.” Fristoe believes an employment attorney could also help you navigate your local laws. “Consult with a local employment attorney because jurisdictions vary. Before you roll out a policy or push anything out in the marketplace, I would make sure someone local vetted it so it’s right because then you don’t expose yourself. It’s worth the money to get it right the first time.” BSB
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PERSONNEL » Tackling Substance Abuse
Common Mistakes Avoiding or not addressing the issue. Complaints come in from customers and you don’t do anything about it. “Avoiding it or overlooking it and looking the other way is not a good practice, not only for you and your business but the individuals themselves,” says Fristoe. “At the end of the day, you have to think about the human being on the other side of the issue.”
Not planning ahead. “We have to assume nowadays that this is no longer an outlier mentality,” says Cesare. “We have to assume that some of our employees are likely to have this type of vice, so we should plan proactively and assume there’s going to be somebody who will need it rather than pretending that no one has it, closing our eyes to it and just wishing that we never get confronted with the problem.”
Rushing to judgment. “Substance abuse can be illegal as well as legal, looking at alcohol and prescription drugs, so sometimes rushing to judgment – ‘Well, he’s breaking the law, he’s a dope addict, he’s a drug pusher, we have to get rid of him’ – is not the thing to do,” Cesare says. “I understand that moral lens, but our country is no longer on that wing of the continuum anymore. You have to focus on the process and do it the right way. If someone is abusing, first off do an investigation tracking behavior and key performance indicators, etc., to find out if it’s affecting the essential functions of the job. There are some people who are functional alcoholics and can get drunk, stay drunk and be drunk and yet perform the essential functions of their job forever. So simply because I’m an alcoholic does not mean I can be fired. If I can perform the essential functions of the job, and those are two key words according to the ADA, I really can’t be fired.” ALSO: Failing to act; failing to apply your policy consistently; not informing your employees of the policy; not having a policy at all.
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BUSINESS
There are a lot of labor operations we perform and don’t charge for… but we, as professionals, should.
By Joe Palumbo ast month, we discussed forgotten labor operations. Well, it never ends, just like that bumper cover you’re repairing. A scratch here, a gouge there and before you know it, you’ve repaired the cover end to end. And so it goes with “forgotten” labor operations.
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Boron vs. Mild Steel » Does everybody enjoy working with boron steel? You get to purchase expensive drill bits the insurance companies won’t compensate you for. These bits can run as much as $70 each and are very brittle. And even with these specialized bits, drilling boron is no picnic. You can spend hours on end preparing a new boron replacement part for installation. If, however, you’re in78
stalling an LKQ assembly and you just need to remove the boron part from the assembly, a belt sander is
If you’re not careful, you can destroy the vapor barrier on a door when removing it since it’s usually weaker than the adhesive holding it.
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the way to go. This handy little tool makes short work of boron. As far as preparing a new boron part and drilling for plug welds, your best bet would be to pilot the holes first with an 1/8-inch bit, then the boron bit. After working with boron steel, drilling through mild steel seems easy. At any rate, the insurance companies pay the same for drilling boron as mild steel, even though one takes at least twice as long as the other to prepare. We should be charging more, right?
Doors/Tailgates » Let’s take something simple like a door or tailgate. When your paint shop edges out your door with the new color, they typically want as much trim and
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BUSINESS » Forgotten Labor hardware removed as possible. We all know to remove handles and moldings, but how about those rubber grommets that bump up against the door jamb? What about the door check? Or the latch? Do you expect the painter to do a sufficient job masking a greasy latch? Not possible. You have to – at the very least – take
out the screws and move the latch inside the door. Disconnecting the linkage is normally not necessary. While we’re on the subject of LKQ doors, do yourself a favor and make sure the used assembly has the identical wiring harness as the damaged door. You don’t want to find out on Friday afternoon that you need the
old door that the scrapman picked up this morning. Also, consider the grommets on used doors covering the drain holes. Insurance companies are great at paying for removal of the handle, belt molding, body side molding and mirror, but to take this used part and truly bring it to pre-loss condition, we need to really detrim it and make it right. Your painters will appreciate it and so will your customers. We might also bring up vapor barriers when addressing doors. These are usually plastic or sometimes thin rubber and are bonded to the door with a bead of adhesive that’s normally stronger than the vapor barrier. If you’re not careful, you’ll destroy the barrier. When you’re replacing a damaged door with an LKQ door, you have two opportunities to salvage one vapor barrier. The best chance you have will be to try to cut the adhesive and slightly pull on the barrier. Remember, the adhesive is usually stronger than the barrier, so pull lightly.
Clips and Weatherstrips » What about weatherstrips? They have to be removed because masking them is impossible. I say this as an old combo guy who has masked everything, and I’m here to tell you: you can’t mask a weatherstrip. Even if you try, you run the risk of tearing it during the unmasking process. That having been said, when you remove a weatherstrip, the clips break. If they don’t break, the weatherstrip isn’t going to hug the door shell as tightly as it should to seal against wind and water. Simply put, the clips – all of them – need to be replaced. If you’re lucky, your shop stocks a good assortment of clips, and that’s great, but…who will pay our tech for changing out 30 weatherstrip clips on a single door? This is a tedious task and somewhat timeconsuming. It also requires patience because it’s very easy to tear the Circle 80 for Reader Service
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BUSINESS » Forgotten Labor vacuum the door. More importantly, charge for it. It’s legitimate and necessary.
weatherstrip when you remove the old clips. A new weatherstrip is expensive, and so should be our time for performing this task. Again, your shop might be getting paid for the clips, but I doubt they’re charging for the time necessary to change out the clips.
Hospital Visit » Let me put this
Riveted-On Moldings » What about those riveted on moldings? Think about a rear door on a GMC Terrain. The scalp moldings around the rear door glass are riveted under the run channel sealing strip, and so is the applique. You have to remove the molding for painting. Your first step is to take your pin punch and knock the center of the rivet in, and it falls into the door. Then you have to drill the head of the rivet until it’s thin enough to take a small chisel and knock it off. At that point, the molding is off, but the
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The lower drain is a plastic insert that snaps into the drain hole in the door and directs the water away from the pinchweld.
shank of the rivet falls into the door. You can’t leave it in the door because an aluminum rivet will cause galvanic corrosion and will rattle around when the door is closed shut. In addition, it may block a drain, causing water to sit in the door. You nor your customer wants either of these scenarios. Pull the speaker for access and thoroughly
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into context. When I go to a hospital and am presented with an itemized bill, I’m charged for every aspirin and Kleenex I used. When my health insurance company is given that bill, they gladly pay, minus my annual deductible of course. Why are we as an industry so different and treated with less respect than health professionals? We are also professionals. I may not be able to do surgery, but a doctor can’t hang a used quarter panel either. Next month, we’ll address anchoring, measuring and used quarter panels. BSB Joe Palumbo is a body and frame technician with Haggerty Buick GMC. He can be reached at jbondojoe@aol.com.
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SHOW PREVIEW
All Roads Lead to SEMA
It’s time to peel out and head for Sin City as the SEMA Show fires up and brings all your friends, business partners and industry titans together for a racin’ good time. By Gina Kuzmick h, November. Summer’s long gone, the days are getting shorter by the minute and the holidays are right around the corner. But while most of the country is starting to cool down for winter, things are just beginning to heat up in Vegas. Notorious for being the biggest and arguably the best automotive show in the U.S., the SEMA Show offers more than a million square feet of the hottest new vehicles, automotive equipment and even some renowned celebrities. But this event isn’t just for flashy hot rods and glitzy paint jobs – it offers the most thorough, up-to-date education and the latest products for collision repairers, all in one location. This year marks the fifth SCRS’ Repairer Driven Education series, which will feature
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Photo: littleny / Shutterstock
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SHOW PREVIEW » All Roads Lead to SEMA educational sessions on Tuesday, Thursday and Friday of the show. SCRS Executive Director Aaron Schulenburg says that with sessions focusing on topics such as HR, management, estimating and technical information, there’s something for everyone at SEMA. But perhaps the most talked-about addition to this year’s RDE series is the OEM Collision Repair Technology Summit. Scheduled for Wednesday, Nov. 5, the daylong educational event will focus on the rapid acceleration of new technologies implemented by vehicle manufacturers. “The purpose of the Summit is to take a topic that’s important to everyone in the industry, regardless of business model, and have a very high-level discussion that brings tangible conversation that’s aimed at shop floor changes,” said Schulenburg. “We’re also trying to give people good information about business solutions that can better serve their businesses, the consumer and make sure our industry is prepared for these new technologies.” By hosting the event in the middle of the week, Schulenburg hopes that topics addressed during the Summit can carry over to other discussions taking place during SEMA – including the Collision Industry Conference (CIC), scheduled for Thursday, Nov. 6.
“We’re bringing in some great speakers from the aluminum and steel industries to talk about market development of the use of their products and why that’s going to drive use of their materials and vehicles down the road, and I think a lot of that conversation will be relevant to CIC and the discussions that take place out in the hallway,” he said. “There’s obviously a lot of conversation going on in the industry right now about proper repairs and the new technologies coming down the road. Repairers need to understand where those technology trends lie and what the expectations are.”
Other Happenings » A welcome reception will kick off the show on Tuesday, Nov. 4, offering showgoers an opportunity to unwind and network with fellow industry members. In addition, CIC will take place Thursday, Nov. 6 from 8 a.m. to 5 p.m., hosting hundreds of collision professionals who will be discussing the hottest topics in the industry. A reception will precede the event, followed by the SCRS After Party cohosted by PPG, which will be held at the new Westgate Resort. And with I-CAR training taking place every day on the show floor, the SEMA Show won’t be short on educational opportunities. BSB
Repairer Driven Education Schedule TUESDAY 10:00 – 10:45 a.m. RDFree1 Dispelling Common Collision Repair Myths Shawn Collins, 3M 11:00 – 11:45 a.m. RDFree2 Considerations in Structural Repair Labor Toby Chess
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12:30 – 2:30 p.m. RDE1 Creating Engaging Consumer Videos for Marketing Kristen Felder, CollisionHub Learn the basic principles of creating engaging video content along with easy-to- follow production steps in this hands-on class. Attendees will learn the principles of video marketing to consumers: 䡲 How to create video ideas. 䡲 How to plan a shoot. 䡲 How to direct and produce a video. 䡲 Important steps in post-production.
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SHOW PREVIEW » SEMA 䡲 How to upload, optimize and promote a video. At the end of class, attendees will receive access to an online video series that explains all the steps in greater detail and available for them to replay at any time Shops will also receive three PreFab Ads videos to add their name and contact information. 12:30 – 2:30 p.m. RDE2 Aluminum Repair Procedures, Techniques and Requirements Larry Montanez III, P&L Consultants, LLC This program will cover cosmetic and structural repair techniques and procedures for aluminum components. Topics discussed will be outer panel repair and reshaping, structural component replacement, attachment and replacement methods, tools and equipment, precautions, welding and rivet-bonding. Costs of investing in aluminum repair will also be addressed. 12:30 – 2:30 p.m. RDE3 Leading For Results: Hiring, Coaching and Managing a Winning Team Ted Williams, Sherwin-Williams Automotive Finishes The biggest potential obstacle in making productive changes in your business is your people. How you manage your human resources is critical to your success. The purpose of the course is to share best practices for interviewing, coaching and performance management. Attendees will come away from the course with specific techniques and tools that they can use in their facility. The end result is to equip shop owners and managers to create the right dialogue that leads to improved performance and employee retention. 3:00 – 5:00 p.m. RDE4 Express Repair Workshop – ZERO Day Repairs Lee Rush, Sherwin-Williams Automotive Finishes This workshop is designed to maximize throughput performance of light severCircle 88 for Reader Service
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SHOW PREVIEW » SEMA ity repairs and examine fundamental improvements that can be implemented on the shop floor and the processes associated with repairing “0” to “2” day repairs. Upon successful completion of this course, students will be able to: 䡲 Organize their workplace to recognize Express Vehicle opportunities and effectively process them into Express Repair. 䡲 Execute the use of visual controls to create the urgency and visually manage these vehicles through the process. 䡲 Set up standard work (SOPs) at “shop level” and not as philosophies, concepts and theories. 䡲 Produce “Zero Day” repair in your collision operation with these processes to reduce overall shop cycle time averages.
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3:00 – 5:00 p.m. RDE5 Using Industry Statistics to Your Advantage Mike Anderson, Collision Advice This seminar provides collision repair centers with the latest industry-related statistics. The seminar looks at industry trends, OEM trends and statistics from the latest sources from across the country. The seminar also looks at legislation updates on laws and pending court cases that could impact your business. 3:00 – 5:00 p.m. RDE6 LEARN to Earn — Opening the Door to Sustainable Profits Tony Adams and Kevin Wolfe, LeadersWay and PPG Industries This session will teach attendees about leadership, development and collaboration. You will learn how to create an environment where everyone moves as one, and how to close the gap between where people are and where people can be.
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SHOW PREVIEW » SEMA WEDNESDAY 9:00 a.m. – 5:00 p.m. RDOEM14 SCRS Presents: OEM Collision Repair Technology Summit
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A completely unique networking and learning opportunity designed to put SEMA show attendees in a room with a content-rich agenda focused on emerging trends and evolution in vehicle design, construction and technology as it relates to the collision repair environment. The format, featuring elevated discussions surrounding shop floor issues, will include high level speakers, panel discussions, breakout sessions, hands-on technology displays and organized interaction with OEM representatives and others with direct impact on vehicular changes relative to collision repair. This event will give great insight into current and future requirements necessary to maintain pace with the automakers in your repair business, while operating in our highly competitive marketplace.
THURSDAY 10:00 – 10:45 a.m. RDFree3 2015 F-150 Repair Information Larry Coan and Gerry Bonanni, Ford Motor Company 11:00 – 11:45 a.m. RDFree4 Guide to Complete Repair Planning – Estimating Tips Toby Chess 12:30 – 2:30 p.m. RDE7 Check Yourself - Departmental Quality Control to Prevent Incorrect Repairs Larry Montanez III, P&L Consultants, LLC This program is designed to cover commonly missed or discovered procedures during post-repair inspections, which cause corrective and/or re-repairs. After this presentation, attendees should have a better understanding of the following: 1. How to implement SOPs per department to ensure proper repairs 2. What the most common mistakes
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SHOW PREVIEW » All Roads Lead to SEMA are in each department in the facility 3. How to correct an incorrect repair or problem before it becomes a problem 4. How to prevent incorrect repair in the future and sleep better at night
3:00 – 5:00 p.m. RDE10 Managing Online Reviews - How Your Reputation Hangs Precariously In the Balance Mark Claypool, Optima Automotive
12:30 – 2:30 p.m. RDE8 Leaning on Process for Profit Improvement Steven Feltovich, Sherwin-Williams Automotive Finishes
You’ve worked hard to earn your good reputation, but it can all be lost in a single incident. In today’s electronic communications world, nothing is secret, especially when things don’t go quite right, or when unreasonable people decide to try and stick it to you with bad reviews. You simply MUST be paying attention. Your reputation rests in the balance and you need to know how to track things that are said about your business online and how to properly respond to reviews, both good and bad. This workshop will cover all this and more.
Driving financial results by increasing efficiency should be the goal of every business owner. Establish a process-driven culture for the ultimate competitive advantage! Learn how to connect the power of process to a sustainable business model. Increase profits by applying a Rapid Throughput Production Model. 12:30 – 2:30 p.m. RDE9 Surviving the Push for Refinish Reductions - Spot Within Panel Survival Kit Tim Ronak, AkzoNobel Automotive and Aerospace Coatings This presentation is a 2014 update on the industry acclaimed Spot Within Panel Survival Kit designed to utilize the databases to deflect requests to “alter” or “reduce” refinish times from published database times. A copy of this kit will be provided to attendees, and the session will define: 䡲 History of the labor operation, and where it came from 䡲 What is the difference between a “Blend Panel,” “Spot within Panel” or “Refinish within Panel Boundaries?” 䡲 What do the database providers and paint companies say? 䡲 Do the database providers calculate time for “Spot within Panel?” 䡲 What specific criteria qualify a repair as a “Spot within Panel?” 䡲 What is the “Six Inch Rule?” 䡲 What considerations are required when performing a “Spot within Panel?”
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3:00 – 5:00 p.m. RDE11 Customer Service Manager Training Steve Trapp, Axalta Coating Systems This presentation will prepare the attendee to be aware of the processes taught to a CSR to train them to fill that role in a collision repair center. The course will review the pre-repair, during repair and post-repair roles the CSR could or might fulfill. 3:00 – 5:00 p.m. RDE12 Getting Paid For Investing in Facility, Equipment and Training Tim Ronak, AkzoNobel Automotive and Aerospace Coatings Repairers are facing significant additional tooling and training to repair modern vehicle construction materials and technology. This session will look at the shrinking Labor GP% due to additional costs of investment in equipment, facility and training. Strategies will be explored to understand the mechanisms at your disposal to offset these rising business costs to justify a return on that capital expenditure.
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SHOW PREVIEW » All Roads Lead to SEMA 9:00 – 12:00 a.m. RDEPARTY14 SCRS’ RDE Sky Villa After Party After a long and fulfilling week of traversing booths on the show floor, and attending educational classes to better your business, you’ve earned a remarkable evening of luxury, Las Vegas style! Located in the famed LVH Sky Villa suites at the LVH Hotel, this afterhours event gives you the opportunity to relax and network with some of the collision industry’s most influential leaders and educators, all while taking in the views of Las Vegas in some of the most recognized high-roller suites in the city. Access to the event is through the Central Hall elevator in the LVH Hotel lobby.
FRIDAY 10:00 – 10:45 a.m. RDFree5 Aluminum 2014 and Beyond Ken Boylan, Chief Automotive Technologies 11:00 – 11:45 a.m. RDFree6 3.5 VOC Solvent-borne Basecoat Technology — a Viable Alternative to Waterborne Basecoats for Collision Repair Bruce Williams, Axalta Coating Systems 12:30 – 2:30 p.m. RDE13 Are You Really Repair Planning or Just Estimating? Scott Wheeler, AkzoNobel Automotive and Aerospace Coatings This session focuses on what is required to create and sustain a con-
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sistent repair planning/blueprinting process. Many repair facility operators believe they have mastered the process, yet are plagued by last-minute delays and additional supplements. During this session, participants will learn how to implement the culture, process, position responsibilities and scorekeeping that will sustain repair planning success. 12:30 – 2:30 p.m. RDE14 “Got Brand?” - Building an Effective Brand Strategy Dominic Brusco, Audrey Nass and Bruce MacKenzie, PPG Industries Building an effective brand strategy begins by defining what a “brand” is and what it is not. The session will focus on the importance of customer experience, employee engagement,
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SHOW PREVIEW » All Roads Lead to SEMA online image and community involvement in building an effective brand strategy. The session will detail the key elements of building a brand and driving the strategy. 1. Defining the key elements of an effective brand and brand strategy. 2. How to evaluate the impact of a brand.
3. How telling your story is a great way to create an emotional connection while building your brand. 4. The impact employees have on a shop’s brand identity and how to engage them in your efforts in driving the strategy. 5. The importance of your online image in driving your brand strategy.
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12:30 – 2:30 p.m. RDE15 Effective Hiring, Discipline & Termination — Managing the Entitlement Generation Cory King, Fine, Boggs & Perkins LLP Human resources problems and employment-related lawsuits/claims are among the biggest drains on the financial health of employers. Shop owners cannot stop disgruntled employees from being disruptive, making claims and filing lawsuits, but they certainly can put themselves in a position to maintain control of their shops and win lawsuits. This seminar will provide owners and managers with the training and tools they need to avoid hiring “the walking lawsuit,” manage their workforce in a productive way, and win any claim that may be filed before they boot problem employees out the door.
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SHOW PREVIEW » All Roads Lead to SEMA
Phish Oct. 31- Nov. 2 MGM Grand Garden Arena
Kiss Nov. 5-23 The Joint at Hard Rock Hotel & Casino After years of trying to book the band, the Hard Rock finally scored big. In celebration of their 40th anniversary, the rock greats promise a show that’s larger than life, with a one-of-a-kind stage setup and atmosphere. We won’t judge if you dress like Gene Simmons – just make sure you save that for the concert, not the SEMA Show! Photo: Vince Clements / Shutterstock
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The iconic jam band takes the stage for three nights of groovy sounds. Drawing from such musical genres as jazz, funk, rock and folk, the band is known for their lengthy, energetic performances and impressive improvisation.
Wicked Nov. 4-9 The Smith Center A spin-off of the classic musical “The Wizard of Oz,” “Wicked” tells the other side of the story, with a focus on the Wicked Witch’s past. With tons of comedic banter, catchy music numbers and incredible theatrics, this performance will leave showgoers feeling starstruck.
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Booth Previews With SEMA and AAPEX just around the corner, you’re probably getting the itch to start spending money on equipment and products. Let the fun begin! The BodyShop Business SEMA/AAPEX Booth Previews 2014 are packed full of potential purchases. If something in this paid-for sampling of products and services catches your attention, you can get more information by visiting the company’s booth at SEMA (Nov. 3-7) or AAPEX (Nov. 4-6). If you won’t be attending any of these shows, fill out the Reader Service card found in this issue between pages 56 and 57 and drop it in the mail.
Make Precision Holes Fast Blair Equipment will be showcasing all of their holemaking, spotweld and auto body tools at this year’s SEMA show. Hot rod restoration to collision repair Blair spotweld cutters are available in all types including ones to remove spotwelds in boron steel. Rotabroach Annular Cutters cut clean, burr-free holes 3 times faster and last 10 times longer than twist drills or hole saws. Rotabroach cutters are used in all types of automotive restoration, fabrication and racing. Staff will be on hand to answer questions and offer technical advice.
Blair Equipment Company 3001 Hougen Dr ● Swartz Creek, MI 48473 ● (800) 426-7818 www.blairequipment.com ● Booth #10834
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Booth Previews Waterborne-Breathable Air Combo System As the use of waterborne paints becomes more popular and, in some areas, required, the need for clean and dry compressed, sprayable air is a critical component. And by lowering the dew point and relative humidity, you can create a quality of spray necessary to properly apply today’s waterborne paint products. Plus, the convenience of having a Quality Air Breathing System to comply with OSHA regulations for proper air supplied respiratory protection, and delivering clean and dry air from a single system, is cost effective and efficient. The Model 50-WB is designed to work with your existing compressed air source to properly filter and monitor the compressed air and provide Grade “D” Breathable Air – up to 50 SCFM or 35 SCFM of clean and dry spray air for use with waterborne or solventbased paints or any combination within those parameters. This system can handle up to two painters at the same time. For more information, visit us in Booth #11416 or contact Martech Services Company, (800) 831-1525, www.breathingsystems.com
$2,895.00
Compliance Without Complication! Matrix System was the first paint manufacturer to create a “true” Premium Low VOC Solvent Basecoat (MPB-LV). MPB-LV is the only system designed as an alternative to waterborne with all toners and components being 100% compliant! This high performance basecoat system offers exceptional color match, faster coverage and superior quality. Compliance without complication is why painters are choosing to use MPB-LV over the competition. ● Exceptional color match ● Fast application and flash times ● No new equipment or techniques are needed
SEMA Booth #10669
Professional Series Truck Bed Liner – Now In 2-Gallon Kits! Scorpion Protective Coatings, Inc., now offers its Professional Series Truck Bed Liner in 2 Gallon Kits. The Scorpion 2 Gallon Kit Program is a perfect fit for automotive collision and repair shops because it comes pre-measured and ready to mix. This will eliminate the chance of off-ratio mixing. Another benefit is the reduced inventory for the applicator. Scorpion continues to provide a lucrative and proven bed liner system to its customers. This tough, durable, polyurethane spray is easy to apply and attaches to nearly any surface. Scorpion offers many color options, or it can be custom colored.
www.scorpioncoatings.com www.bodyshopbusiness.com 101
Booth Previews Miracle System The only thing better than a new panel is the original. Miracle System is a system of panel repair tools developed more than 30 years ago in Japan by Star Co. It provides – on mobile trolleys – all the tools required to make a panel repair regardless of the tools individual technicians may have. The technician can move to a job knowing he has all the tools in place without having to return to his toolbox for hammers or grinders. The various beams and pullers allow you to pull anywhere on the vehicle and keep the panel under tension while you do the hammering. Miracle tools are made out of titanium and aluminum. This proprietary alloy is then cast into the various tools so they are both strong and lightweight. These tools are made without compromise for the harsh body shop environment.
SEMA Show Booth #11471
International Epoxies & Sealers International Epoxies & Sealers is a U.S. manufacturer of high quality adhesives, sealants, foams, coatings and other specialty products. Since 1985, our objective has always been to provide our customers with the highest quality products and services at the fairest prices. Let us help you grow your business. Visit www.useies.com or call (800) 451-7206. Panel Bonding, Plastic Repair, Automotive Foams, Seam Sealers, Coatings, Attachment Tapes, Service Aids, Lubricants and more!
SEMA Show Booth #11086
The Ultimate In European Waterborne Refinishing Pro-Spray’s H2O Waterborne Basecoat is a premium European waterborne basecoat system that fuses the art of color with the power of water to provide ease of use, amazing color match, high opacity, perfect blends and a beautiful finish. Pro-Spray’s H2O is a fully compliant, stand-alone, compact system that delivers solid, metallic, pearl and xirallic colors, making your paint repair simple and seamless. ● Precise color and easy blending ● High opacity colors ● Simple shake and pour mixing
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Booth Previews An Iron Grip! U.S. Chemical & Plastics AG-47™ Lightweight GRIP Filler sticks like nobody’s business. Its super strong gripping power is a result of our patented Z-TEK™ Adhesion Booster. Z-TEK™ ensures a strong hold and high performance. AG-47™ is lightning fast, which ensures that everything you do is quicker, with a smooth pinhole-free finish. ● Maximizes bonds to bare steel, galvanized metals and aluminum ● Provides a smooth, pinhole-free finish
SEMA Booth #11369
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»| Industry Update |« YouTube continued from pg. 10 cause catastrophic damage,” he said. “You can’t really explain it to somebody, so the video showed a comparison side-by-side of a factory rail versus an improperly repaired rail. It opened a lot of eyes.” The video’s popularity gained momentum when Walkowiak placed it on his website and had it linked to
Google Adwords. When consumers searched for “bad repairs” on Google, the video would pop up. “A lot of the video we showed was inner structure, and a lot of that you can’t see in a photo or by looking at the exterior of a car,” he said. “No one gets up underneath their car when they pick it up from a collision repair. So our videos show cars that have
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been returned to owners that were supposedly fixed right and are perfect according to manufacturer specifications, but none of these cars were fixed properly.”
The Internet Impact » While the content in Walkowiak’s video is powerful in and of itself, it packs an especially big punch for another reason: it was posted and shared solely through the Internet. While TV spots still present great value for some body shops, YouTube is also an option with an arguably larger impact. “It used to be that you’d have to create a TV commercial and spend thousands of dollars to buy airtime, and not a lot of shops have the resources to do that,” said Lee Emmons, vice president of the company that produced Walkowiak’s video. “But video content is very engaging for people, and you can distribute it for a lot less money online.” But Charles Jessen, owner of PreFab ads, says collision repairers shouldn’t count out TV commercials entirely. They often work in symbiosis with social media. “Video is important and works in different ways, depending on its objectives,” says Jessen. “Humorous TV commercials, for instance, can
»| Industry Update |« plant the seeds of awareness with hundreds of thousands of consumers, depending on the media weight behind it, and has the potential to ‘go viral’ on sites like YouTube and other social media avenues. Educational videos on sites like YouTube back up that initial awareness with an air of authority and expertise to those consumers once they’re in need of collision repair and in the decision-making cycle.
The number of views for educational videos, naturally, is going to be much lower, often in just the hundreds. But both forms of videos work together toward the common purpose of customer conversion.” In addition to the low cost, posting a video on YouTube also boosts a company’s search ranking on Google because the site is owned by the search engine titan. “The fact is when someone does a search for a keyword, they’re likely to pull up relevant video in that return in the results,” said Michael Camber, marketing services manager for Kaeser Compressors. His company has posted a handful of videos specific to the automotive market with a primary focus on products and equipment. By posting testimonials of people who have had success with their equipment, Kaeser aims to expand its customer base.
Consumer Education » Aside from promoting products and services, the underlying theme of collision videos seems to be consumer education. Michael Bradshaw, vice president of operations for K & M
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Collision in Hickory, N.C., has published videos that aim to educate consumers on a variety of topics, such as their insurance policy, steering and their rights after an accident. Similar to Walkowiak, he has posted “case study” videos of post-repair inspections – a category that Bradshaw says not only educates the consumer, but also insurers. “We look at a vehicle that’s been fixed that was ultimately fixed incorrectly. That’s not only geared toward consumers but also the consequences of some of the actions by a lot of these insurance companies,” he said. To further spread awareness, other shops and even industry associations have picked up and shared K & M’s YouTube videos, most recently one that serves as an open letter to the North Carolina attorney general, encouraging him and others in office to take action against steering and unsafe repairs.
Read the rest of this story online
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»| Industry Update |« More Than 50 Attorneys Set to Defend Insurers in Consolidated Short-Pay Lawsuit ifty-five attorneys representing various national insurers showed up at a Sept. 11 hearing in Orlando to defend their clients in a consolidated lawsuit filed by body shops from around the country, according to an article in the Orlando Sentinel. Hundreds of collision shops from around the country are suing roughly 80 insurance companies for short-pays. Companies involved include State Farm, Allstate, Geico and Progressive. State Farm has denied liability in its large-scale
F
Florida case, while the other aforementioned companies have filed motions to dismiss their cases. The hearing primarily focused on introducing court staff and attorneys
ARA continued from pg. 11 OEM crash parts in vehicle repairs. The letter also stated that the Court found that neither the West Virginia Automotive Crash Parts Act nor Consumer Credit and Protection Act statute prohibited body shops or insurers from utilizing these parts, that aftermarket crash parts and salvage/recycled OEM crash parts are “diametrically” different products and not interchangeable, and applauded the insurers for using measures to reduce
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to each other. Thirteen collision repairers, including Ray Gunder of Lakeland, Fla., were also in attendance. The court decided to combine the numerous
October 2014 | BodyShop Business
lawsuits in order to better streamline the hearing process. Attorneys representing the body shops say they expect 20 to 25 more cases to be filed in the near future.
premium costs for their customers. “The West Virginia ruling is a significant step forward for the professional automotive recycling industry and the increased utilization of genuine, recycled OEM parts,” said ARA CEO Michael E. Wilson. “Regrettably, not all state attorneys general have done their homework and educated themselves about our industry and the critical role that recycled OEM automotive parts play in the market.”
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Product
Showcase Achieve Desired Dew Point
Designed for the inner front fender of popular 1957-’58 Fords, this repair panel remedies corroded battery areas, extending from the radiator support back to the cut-out for the A-arm at full height.
Available up to 25 CFM, the Tsunami Membrane Dryer is a low maintenance, premium solution for achieving desired dew points when spraying waterborne and solvent basecoats. Units ship preassembled and include a water separator and oil coalescing filter for removing water and oil particulates down to .01 micron. Tsunami Compressed Air Solutions also offers trusted regenerative dryers.
EMS Automotive www.emsautomotive.com Circle 150 for Reader Service
Tsunami Compressed Air Solutions www.tsunami.us.com Circle 151 for Reader Service
Replacement Repair Panel
Classifieds SPOT WELD CUTTERS Competitive pricing on new or save even more with our
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www.bodyshopbusiness.com
BodyShop Business Classified Call Jennifer Hazen today at 330-670-1234 ext. 224
CleanSheets® “The Original Patented Mixing Pad”
Stop wasting valuable time looking for cardboard or cleaning mixing boards! Clean Sheets® Mixing
Boards are used by thousands of repair shops to mix epoxies, body filler, fiberglass, plastics, gel, putty and touch-up paint. • Prevents costly reworks • Non-absorbing, heavy-duty paper with grip for mixing • Bonded on 3 sides • Pays for itself the first week you use them! CALL YOUR LOCAL JOBBER or
800-365-1308 www.cleansheetsmfg.com
• Original Equipment Wheels In Stock • Limited Lifetime Guarantee • 1000s of Wheels In Stock • Affordable Prices
We ship from eight different locations: Dallas, Houston, San Antonio, Los Angeles, Philadelphia, San Francisco, Chicago, Miami
Alloy Wheel Remanufacturing Order your Wheels at:
www.newwheel.com or 800-486-0931
BodyShop Business Classified Help wanted • Business for sale • Equipment for sale • Software... and so much more! Call Jennifer Hazen today at
330-670-1234 ext. 224
MarkiNgpeNdepot.coM Collision Shops, Towing, Auction Sites, Dealers, Recyclers, OEMs Tow Pro $2.50 Autowriter $3.50 Posca $3.50 Bopagla $2.00 Unipaint $3.86 MPD-15 $1.30 Volume Discounts! Call 888-906-9370 or online at
markingpendepot.com
www.bodyshop business.com
BodyShop Business Classified • Help wanted • Business for sale • Equipment for sale • Software... and so much more!
Call Tom Staab today at
330-670-1234 ext. 224
By the
Numbers Vital collision industry stats
What Percentage Of Your Repair Orders Includes These Parts? (Adds To More Than 100%) What Is The No. 1 Source You Use To Hire Production Personnel For Your Shop?
Employee Referral
44%
Internet
21%
Newspaper Ad
12%
Other Shops
6%
Other*
17%
Total
100%
65%
Most Helpful Source
Source
65% 60% 55% 50% 45%
40%
Source: 2013 BodyShop Business Industry Profile
32%
35%
In The Next Five Years, Do You Think Your Business Will Be More Successful Than It Is Today?
30%
25%
20%
Same As Today
24%
15%
Yes
10%
9%
58%
No
5%
18% Non-certified Parts
Source: 2013 BodyShop Business Industry Profile
Certified A/M Parts
OEM Collision Parts
0
Source: 2013 BodyShop Business Industry Profile
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