FenderBender - August 2021

FENDERBENDER.COM / AUGUST 2021

RAINS: MSO REALITY CHECK

PAG E 36

STOP RELYING ON SUPPLEMENTS PA G E65

Strategies & Inspiration for Collision Repair Success

THE ROAD

AHEAD

HOW TO CHARGE FOR ADAS SERVICES

PAG E 55

UNLOCK FUTURE GROWTH BY BRINGING IN FRESH TALENT PAG E 47

Quick Rise On the Road Garage is not your usual body shop.

And Michelle Corson isn’t your usual CEO. That’s exactly why the company has achieved such quick success.

INSIDE A 20 GROUP MEETING

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Valid only on purchases made through Auto Data Labels’ website or by email. Cannot be combined with any other offer or redeemed for cash. Max credit cannot exceed $5.00. Promo code may only be used once per customer. Credit applied after the purchase price, shipping & handling, and tax are determined. Offer expires August 31, 2021.

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®

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CONTENTS

AUGUST

0 8 . 2 1

|

V O L U M E

2 3

|

N U M B E R

0 8

Industry Support Billy Coleman, collision director of Gullo Ford Collision, credits his 20 Group and its members for helping him lead the Texas-area dealer body shop to new heights and continued growth.

FEATURE

PROFILE

26 INSIDE THE 20 GROUP

32 COMMITTED TO GROWTH

Peer networking could be the missing piece to your shop’s success puzzle.

On The Road Garage is poised for growth while planning to help train the next generation of collision repairers.

BY MIKE MUNZENRIDER

BY MIKE MUNZENRIDER

Printed in the U.S.A. COPYRIGHT ©2021 BY 10 Missions Media LLC. All rights reserved. FenderBender (ISSN 1937-7150) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. FenderBender content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: FenderBender, 571 Snelling Avenue North, St. Paul, MN 55104.

August 2021

5

fenderbender.com

AUGUST CONTENTS

QUICK FIX

The value of community

Gold Coast Auto Body

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SRS

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THIS VEHICLE OC NFORMSTO ALL APPLICABLE FEDERALOTOR M VEHICLE SAFET Y, BUMPER, ANDTHEFT PREVENTIONTANDARDS S IN EFFECT ONTHE DATE OF MANUFACTURE SHOWN ABOVE. VIN: 1FTPW14V57F000000 F0257 Replacement label: Not from Ford T0514 TYPE: TRUCK

VEHICLE MFD. BY FORD MOTOR CO.

ATION FORM OL IN ONTR

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145

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D E L IV E RY IN 1- 3 DAYS !

COLD TIRE PRESSURE SEE OWNERS 303kpa 44psi MANUAL FOR 303kpa 44psi ADDITIONAL 303kpa 44psi INFORMATION

REAR P265/70R17

JTHCE96S870000000

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VEHICLE EMISSION CONTROLINFORMATION

PAINT AND TRIM

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JTHCE96S870000000

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TAKE A PHOTO OF THIS AD. DISTRIBUTE TO YOUR ESTIMATORS AND PARTS PERSONNEL.

SEND PHOTOS TO LABELS@ AUTODATALABELS.COM

CONTACT YOUR LOCAL LKQ / KEYSTONE SALES REP

VISIT US ONLINE AT WWW. AUTODATALABELS.COM

R CO KG MOTO / 266725LB WITH TIRESS FORD 5880LB R: 33 RIM LD D. BY GVWR: REAR GAKWG 6SL 1508 70R1 LE MF PSI CO VEH01IC/ 03 27 35LB WITHES P1263X57/.0J kPa/35 TIR 40 2 DATE:NT GAWR: TOR RIMS D AT L AL MO G FRO S L R K E 6 D PSI CO 1240 /70R1 5 BLE FE .

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22

Gerber’s latest move

fenderbender.com

6

August 2021

21 11

SNAP SHOP LIGHT HITS

30

Unexpected boosts in miles driven

The ROI on OEM certifications

ADAPT

16

NUMBERS

DRIVERS SEAT

Crash Champions eyes expansion

The latest from Crash Champions

Why you need to be prepared for EVs

BREAKDOWN

19 13

ANALYSIS

9

PAST THE PAGE

ADL OFFERS 3 EASY ORDERING OPTIONS

STRATEGY

COLUMNS

37

IDEA SHOP

65

Calibrating your calibration prices

40

HUMAN RESOURCES

Seeking personality over skill

62

76

25

OUTSIDE THE LINES

THE BIG IDEA

Don’t go into expansion naively

Are you sure you’re putting safety first?

BY K E VIN R AIN S

BY JASON BOGG S

69

IN THE TRENCHES

The power of self-reflection

BY STE VE MORRI S

CASE STUDY

Fix a bickering staff

65

OPERATIONS

Minimize your supplements

JOIN NOW!

Unlock your full potential with the only peer-network 100% dedicated to future and working technicians. Use TechForce to connect with other techs, host events, access resources for your future, and more.

Competitions & Games

August 2021

Education & Training

JOINTECHFORCE.ORG

Scholarships & Careers

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Sheryl Driggers Universal Collision Jesse Jacobson Heppner’s Auto Body Greg Lobsiger Loren’s Body Shop Tiffany Menefee Pronto Body Shop Louie Sharp Sharp Auto Body

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IF YOU’V E PA ID AT TEN TION TO collision repair industry news lately, you’ve likely seen an influx of acquisitions from Georgia-based Crash Champions. They have big plans in store for 2021, and you can learn more during a recent CollisionCast episode with the CEO, Matt Ebert. Listen at fenderbender.com/podcasts.

Marketing 101

Shop Inspiration

Need marketing help? You’re not alone. That’s why we tapped marketing expert Megan Williams as an exclusive FenderBender online columnist. Check out her archive of columns at fenderbender.com/meganwilliams.

Coming out of COVID-19, many owners have taken the opportunity to refresh their shops. If you need some new ideas, FenderBender has featured hundreds of beautiful shop tours over the years. See them all at fenderbender.com/snapshop.

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DRIVER’S SEAT

INSIDE 20 GROUPS What’s really behind networking

THERE ARE SOME STAT S from the FenderBender Industry Survey that stick out every year. The number of shops that don’t track KPIs, the biggest challenges ahead, the change in leadership styles, and, the number of shops that belong to a 20 Group. This year, that figure rested at just 31 percent.

In a lot of ways, I get it. It’s time consuming, it can be expensive to travel, it’s hard to take time away from the shop. But not only is the experience of being tpart of one invaluable for its members, the numerical impact also speaks for itself. Across the board, shops that belong to 20 Groups post better KPIs:

helps you to be able to pick up the phone and call somebody and say, ‘I’m struggling. What do you do at your shop?’”

It’s not all warm and fuzzy, though. At times, those meetings involve delving deeply into the numbers of each member’s shop, or group members holding each other brutally accountable to their goals.

All the members seem to agree, though: They wouldn’t be where they are today in their success if it weren’t for their fellow group members. In this ever-changing industry, it’s easy to feel isolated, like you’re on your own island. If there’s one takeaway from this month’s issue, it’s this: Reach out. You’ll be surprised how much others are willing to help.

Annual Revenue Above $1 Million: 63% Cycle Time Below 7 Days: 72% Touch Time Above 4 Hours: 41% Overall Gross Profit Margin Above 40%: 72% Net Profit Margin Above 11%: 45% Efficiency Above 140%: 51% Productivity Above 110%: 50% And it’s not just shops that are bigger, or have more locations, or other reasons that would point to those higher KPIs. Regardless of size, location, DRP involvement, shops that are part of 20 Groups simply perform better.

If you read our main feature this month, “Support. Ideas. Friendship.” (p. 38), I think you’ll understand why. For the first time ever, FenderBender was granted unprecedented access to a 20 Group meeting, to act as a total fly on the wall and observe just how these meetings run. There’s a reason we called the story, “Support. Ideas. Friendship.” because it so perfectly encapsulates what being a part of a 20 Group is like. Take it from Bob Coleman, the collision director at a dealership body shop in Texas: “Getting away, being able to just sit around and talk, in our dinners and our bar rendezvous, really

August 2021

ANNA ZECK

EDITORIAL DIRECTOR

azeck@10missions.com

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NEWS

Q U I C K

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IDEAS

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PEOPLE

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TRENDS

F I X

A NA LYSIS

HOW THE PANDEMIC CHANGED VIEWS ON EVs

That shift in perspective means collision repairers should be prepared for ever more electric vehicle work

I T ’ S B E E N W I D E LY R E P O R T E D that the COVID-19 pandemic made for better air quality in cities, due to fewer vehicles on the road as the usual commuters, shoppers, and others stayed home.

And while that effect may be fleeting— miles driven in the U.S. are expected to

GETTY

By MIKE MUNZENRIDER

August 2021

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surge back up to pre-pandemic numbers, if not higher, as the summer goes on—drivers in North America took note of the drop in pollution and are keen to keep it up.

Mobility Changes

That’s according to the Mitchell Q2 Trends Report, which was released by the technology and information company in June.

The section titled “The Shift in Mobility Patterns” notes that users have turned away from shared transit and have moved out of city centers to the suburbs as a result of working from home, two factors that will bolster the need for personal vehicles in the many years to come.

It also notes a surge of interest in electric vehicles. That’s according to polling data from McKinsey & Company, which found that 56 percent of North American respondents are more interested in purchasing a hybrid or EV because of the pandemic, with half of them saying they were “significantly more” interested.

August 2021

One of the key drivers behind the increased interest, 19 percent of respondents said, was “recent air quality improvements,” which came in just behind “increased sustainability concerns,” cited by 20 percent of respondents.

“This data—coupled with available government stimulus funds and incentive programs—suggests we may experience a more rapid uptake of alternative energy automobiles than previously anticipated,” the report says.

The report’s author, Ryan Mandell, director of claims performance for Mitchell’s auto physical damage business unit, tells FenderBender that body shops should be ready.

“I think we’re in for a boom for collision repair in 2022 when you see more vehicles on the road,” he says.

What to Expect

That boom and the years to follow will include more and more EVs, Mandell says, meaning

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collision repairers should be getting prepared for electric vehicle repairs right now.

That will come down to understanding technology requirements for proper and safe repairs of EVs, alongside getting the training, tools and equipment, and knowhow to repair them.

Mandell also says collision repairers have a chance to set the tone with EV drivers.

“It’s really an opportunity for repairers to be the knowledge expert, to set expectations with consumers,” he says, noting for many of those consumers, it will be their first time owning an EV, and they’ll be dealing with their first collision involving their EV. For body shops, he says it’s crucial to understand that the process of repairing an electric vehicle is new, from managing high-voltage batteries to changes in cycle times.

“This is a more intricate repair than the same pattern of damage on an internal combustion engine vehicle,” Mandell says.

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QUICK FIX

QUICK FIX

LIGHT HITS

GM BOOSTING EV SPENDING THROUGH 2025

General Motors plans to increase its spending on electric vehicles and autonomous technology to $35 billion through 2025, Reuters reports.

That will make for a 30 percent increase in spending compared to its most recent forecast. Reuters characterizes the move as the automaker pursuing EV leadership.

ADAS CALIBRATION CENTER DEVELOPED IN TUCSON

NUMBERS

CERTIFICATIONS AND AVERAGE REPAIR ORDERS A C C O R D I N G T O T H E 2021 FenderBender Industry Survey, 49 percent of responding collision repair shops said they hold at least one OEM certification. What’s the difference between those shops* and shops that have no certifications? Certified shops reported higher average repair orders. *8 percent of shops reported they had no certifications but planned to become certified. They are not included in the figures below.

Average repair order for shops with one or more OEM certification

Average repair order for shops with no OEM certifications

27%

$2,999 or less

40%

69%

$3,000 or more

47%

4%

Do not track ARO

August 2021

AirPro Diagnostics and Car ADAS Solutions announced that an affiliate of Tucson-based O’Rielly Chevrolet will open an ADAS calibration center, Tucson ADAS Calibration Center.

The center opened in June. It is the first stand-alone calibration facility in Southern Arizona, the facility’s GM Brian Guerrero said.

BROADLY ENTERS COLLISION REPAIR INDUSTRY

Broadly, a software solutions company focused on customer experience, has officially launched an auto collision repair sector, the company announced.

The company has helped serve collision repair shops prior to this announcement, but this is its first official move into the sector.

“Collision is a natural fit for us,” Mindy Lauck, CEO of Broadly, says. “We’re very excited to help collision owners attract new business and elevate the collision repair experience for customers.”

I-CAR ADDS EV RESOURCE CENTER

I-CAR has created a new electric vehicle resource center for shop owners that will provide information, support, and training for the latest EV topics, the organization announced.

The platform, “CHARGED for EV”, is free and includes EV training, definitions, course information, and the latest topics and trends in the industry.

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The Boyd Group has continued to grow its network of Gerber Collision locations, including a 16shop acquisition last week and an expansion into Hawaii in May, which gives them locations in 30 states.

And it shows no sign of slowing down or changing because of the COVID-19 pandemic.

FenderBender recently spoke with Jason Hope, The Boyd Group’s vice president of business development and strategic projects, about its year ahead.

On what they look for in potential acquisitions...

“There’s a number of factors we focus on. Some are physical in nature, structural and even some philosophical… We have stores today that are 5,000 square feet to 40,000 square feet. So size is really relative to the individual situation.

“But outside of that, we look for stores that have a great reputation.

We look for stores that really align well with our culture, a strong workforce, customer-centric and individuals and body shop people who care about the community in which they’re operating.”

On the growth strategy through COVID and beyond…

“Our growth strategy is really one that has been consistent probably for the last decade. We’ve publicly stated that our 2025 goal is to double the size of the business again and that really applies to all lines of business within Boyd. It implies a compound annual growth rate of about 15 percent per year… We think that goal is realistic.”

Continued, on COVID: “I wouldn’t say it changed our approach or our thoughts relative to our goal. Going into COVID, we had a strong position in the marketplace and we still have a strong position today and we feel as confident in our ability to achieve our goals as we did prior.”

©2021 Snap-on Incorporated. SUN is a trademark, registered in the United States and other countries, of Snap-on Incorporated. All rights reserved.

August 2021

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QUICK FIX

BREAKDOWN

LATEST ACQUISITION SIGNALS NATIONWIDE ASPIRATIONS FOR CRASH CHAMPIONS

Shop leaders discuss ‘second wave of consolidation’

By PAUL HODOWANIC

C R A S H C H A M P I O N S A C Q U I R E D Signature Collision Centers, one of the largest family-owned, independent collision repair companies on the East Coast.

The move will bring Signature’s 24 locations under the Crash Champions umbrella, giving it 118 shops in the United States. It also represents the company’s first move away from the Midwest/West Coast and into eastern part of the country. The acquisition was finalized in late July, according to stakeholders.

The goal of the acquisition is to further Crash Champions’ goal of becoming a nationwide brand on par with the Calibers and Gerbers of the world.

“We’re wanting to grow and create a national platform as soon as we can,” Crash Champions’ CEO Matt Ebert tells FenderBender. “This is a great opportunity for us to get on the East Coast.”

Ebert says the increasing shift by insurance companies to refer work to larger companies instead of the small, independently owned shops has fueled the company’s rapid growth. In August 2019, the company had just eight locations in the Greater Chicago area. Now with 118, that represents 1,400 percent growth.

Ebert says he strategically chose to acquire a large company on the East Coast with a strong operations and leadership team in place that will quickly allow the company to acquire single-shop and small MSO operations along the coast.

“[The acquisition] signals a lot of opportunity for us to now go and create some density around what Chuck’s already created,” he says.

Signature Collision Centers has locations throughout the greater Mid-Atlantic and Southeast, including in Pennsylvania, Maryland, North Carolina, Florida, and Washington, D.C. Other than a few changing titles, Pipkin’s team will remain in place with Crash Champions, as the brand works to expand its presence on the East Coast. That was an element both sides prioritized and agreed on, Ebert says. It’s part of a synergy that Pipkin and Ebert developed, dating back to 2019 when initial and preliminary conversations began.

However, serious discussions between the two didn’t heat up until late last year/early this year.

Pipkin himself considered making a push to take Signature to the national level. He tells FenderBender that he saw an opportunity in the second wave of consolidation that followed the large moves by Caliber, Gerber, Abra, and Service King. He says when he saw Crash Champions and Classic Collision make moves to pursue widespread expansion, he considered it, but he couldn’t see seven to eight large collision repair brands surviving.

“It’s all about relevance and strength and numbers,” Pipkin says.

“The more I looked at it, I could continue to grow on the East Coast but everybody else was growing. It just made more sense to get together.”

“I ran out of time. Maybe if I’d have started 10 years earlier,” he says.

“The writing was on the wall with all the consolidation. It was time to team up. Matt was the best teammate I could find out there.”

Pipkin says he and Ebert compliment each other well, sharing the same vision and cultural priorities. That will hopefully lead to a smooth transition, the two founders say.

‘I ran out of time.’

GETTY

Signature’s founder and CEO, Charles “Chuck” Pipkin, will take on a “significant” ownership stake in Crash Champions and transition to a new role as an executive board member within the company, Ebert says.

August 2021

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AUTOMATED FEATURES COULD INCREASE MILES DRIVEN

Drivers report a less stressful experience behind the wheel using ADAS

By F E N D E R B E N D E R S T A F F

A S T U D Y F I N D S T H AT users of advanced driver-assistance systems drive 4,888 more miles per year than similar drivers without such features.

That’s according to a newly released study from the University of California’s Institute of Transportation Studies, titled “A Quantitative Investigation into the Impact of Partially Automated Vehicles on Vehicle Miles Travelled in California.”

Respondents who are younger or have a lower household income use automation in a greater variety of traffic, roads, and weather conditions, and those who have pro-technology attitudes and outdoor lifestyles are more likely to report doing more longdistance travel.

The majority of respondents reported using automation most on freeways, in clear weather, and when traffic levels are low. Autopilot users reported they are more likely to use the systems at night and in stop-and-go traffic, on the other hand.

According to the study, the results suggest that partial automation may increase vehicle miles traveled and may make reaching federal and state emissions targets more difficult to reach. More research is needed on this topic to understand how pervasive the issue could be, particularly since partially automated vehicles are available for consumers to purchase and use today.

Good News for Repairers

In a paper posted earlier this year, UC-Davis researcher Scott Hardman interviewed 35 people who owned Teslas with Autopilot, and he found that most thought the feature made driving less stressful.

“The perception by drivers is that it takes away a large portion of the task of driving, so they feel more relaxed, less tired, less stressed,” Hardman told Wired. “It lowers the cognitive burden of driving.”

Although the results of such studies might complicate the future of transportation for lawmakers, these trends are largely a good sign for repairers. Increases in miles driven naturally lead to an increase in repair work. In addition, the emotional changes surrounding driving could result in a change of attitude about vehicle ownership—and its burdens—by drivers.

How Features are Used

GETTY

The project investigated changes in travel behavior by owners of partially automated electric vehicles. The researchers used review results from survey responses including 940 users of partial automation, of which 628 who have Tesla Autopilot and 312 with systems from other automakers.

Autopilot users report using automation more than users of other partial automation systems. It also had the largest impact on travel, notably 36 percent of Autopilot users reporting more long-distance travel.

August 2021

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QUICK FIX

1 SNAP SHOP

GOLD COAST AUTO BODY

By CALEB BROOKS Photos by MICHAEL LIPMAN

L O C AT I O N :

CHICAGO

OWNER:

DOMINIC MARTINO

VICE PRESIDENT AND CO-OWNER:

MARIO MARTINO

SIZE:

50,000 SQUARE FEET

3

S TA F F :

35

A V E R A G E M O N T H L Y C A R C O U N T:

200

Submit Your Shop Proud of your shop and want to show it off to your peers? Tell us about it at

SUBMISSIONS@10MISSIONS.COM.

August 2021

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1.MAINTAIN THE CUT TING EDGE

Dominic Martino, president and co-owner of Gold Coast Auto Body, prides himself on having a state-of-the-art collision repair facility.

“We are certified to work on Audi, MercedesBenz, Volkswagen, Subaru, and Honda ProFirst,” says Martino.

“Additionally, we are constantly working on new models and hardly ever work on a car that is older than five years,” he says.

Because of that, Martino says his shop stays on the cutting edge of collision repair equipment since he needs to constantly purchase new OEMrequired tools.

2. MAKE FAMILY AND FRIENDS OUT OF CUSTOMERS

2

“What truly sets us apart from our competitors is what we offer our customers when they are in the shop,” Martino says.

He says he teaches his front end staff to greet every customer when they come in and to treat them as if they were family or friends.

Additionally, Gold Coast offers its customers small gifts and services, setting itself apart in the industry.

“After their car is fixed, we give them a package with a Gold Coast–branded LED flashlight, chamois cloth, and a notepad,” says Martino. “We also wash every car that comes through our shop.”

4

3. THE L ANGUAGE OF THE LOGO

Martino says the shop’s logo is designed in a very intentional way.

“The golden swoosh represents the sun and the blue swoosh represents Chicago’s proximity to Lake Michigan,” he says.

“We designed the logo to be a circle as a representation of the restoration process that we walk the cars through.”

Gold Coast puts this logo on anything they can: “We are proud of it, it’s our identity, our brand, our Superman ‘S’ on our chest,” says Martino.

4. COMMITMENT TO CONTINUOUS GROWTH

“Due to the continuous changing of collision repair technology, we remain committed to the training and education of all of our employees,” says Martino.

That commitment allows Gold Coast staff to remain on the cutting edge of the industry, constantly learning better and newer ways to repair vehicles.

“But, above all of this,” says Martino, “we are committed to constantly improving to provide the best possible service to our customers.”

August 2021

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COLUMNS

THE BIG IDEA

MSO Reality Check What you need to know before you buy a second location

JILL MATTHEWS

I recently had a shop owner I coach ask me what

I thought about expanding his operation from one shop into two. He was getting excited about the prospect of becoming a multi-shop operator. With the help of his paint vendor, he had identified a couple of locations that seemed promising. One, in particular, had caught his eye. There was an aging owner with no succession plan. A solid building on the main street through a part of town with which he was already familiar. There was lots of good equipment in working order already in place. On top of that, there was a decent book of business that had been built up over many years of operating in that location.

Now, if you’ve met me you know I tend to skew toward the hyper-encouraging. I want people to go after big things. I’m the guy who will cheer you on even when everyone else is saying, “This may not work out well for you.” But I’m also a realist. And I want people to know what they’re getting into. I’m all for the big leap but there needs to be a reality check before jumping!

This is how I responded via email, unedited: “I think it will be hard. Having two shops separated by that great distance will be challenging in ways you can’t even imagine yet. Revenue and profit at your current shop could dip. You and your partner will feel stretched for time. You’ll face challenges that will feel overwhelming at times. You’ll lose sleep. I could go on and on but I’m speaking from experience. It ain’t easy. You and your partner will both need to learn new skills that will stretch you. You will need a better team. And when that team isn’t there (sick, chasing a new opportunity) you will have to figure out how to cover the gaps.

“But, eventually, you’ll start to find a new groove and things will start flowing again and now you have two profit centers versus one. The rewards are there but the challenges are big and there will likely be times when you feel like it’s not worth it. So that’s my little reality check. I’m not saying don’t do it. I’m just saying it’s going to be very hard before it’s rewarding and you’ll have to commit to go through that challenging time.”

When I’m coaching a shop owner or manager I like to use a tool called the “Development Square.”

Each side of the square represents a phase that everyone goes through whenever they’re learning to do something new.

Top side: “We don’t know what we don’t know.”

August 2021

We’re naive. This is the dreamy, honeymoon stage.

And I’m not disparaging it! We need this phase so that we take risks. If all we ever do is count the costs we won’t take any risks. And with no risks, there’s no reward.

Right side: “We know what we don’t know.” We become aware. Once we take the risk, there are several “Oh crap!” moments where we think, “I can’t do this!” or, “I never should have agreed to this!”

This is where we eat a lot of humble pie. This is often the most painful stage where we get in touch with how much we have to learn and grow to be able to sustain the challenges we’re now facing. At the bottom of the right side is what some call “The Pit.” It can be the pit of despair where dreams go to die if we’re not careful. If you feel perplexed and unsure, you’re losing sleep and worrying a lot— those are good indicators that you’re in this phase.

It’s time to make the turn!

Bottom side: “We know what we know.” Now we’ve made the turn and we’re competent. With a lot of effort and forethought, we know what we’re doing. We still have to think about it but we’re capable.

Left side: “We don’t know what we know.” Mastery. Effortless execution. At this stage, we’re not even aware of how we do what we do. It’s become second nature. We make something that others find hard, look easy. We can do it with minimal effort. We don’t have to really think about the task.

We just do it from instinct, naturally.

I once had a 14-shop MSO owner tell me that running two shops was the hardest thing he ever did, and running 14 was the easiest. At two, there’s a lack of resources, time, knowledge, and skills. By the time you hit three, four, five, you’ve learned a lot and you likely have greater resources and momentum. And you can afford an experienced team of competent helpers!

Deciding to become an MSO is a noble desire and the rewards are there! Let me be among the first to cheer you on and tell you it’s doable, you will figure it out! And I also want to tell you, it is hard and painful and feels uncertain for a long time. There is typically a big lag between the initial desire and profitability. Be prepared to hang on for an exhilarating ride around the square as you develop new skills, knowledge, and capabilities. I wouldn’t trade it! But it’s not for everyone. Please let me know if I can help in any way.

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K E V I N R A I N S is the owner

of Rains CARSTAR Group with locations in Cincinnati, Ohio, West Chester, Ohio and Lexington, Ky. He is also an industry consultant.

EMAIL:

kevinrains@gmail.com

ARCHIVE:

fenderbender.com/rains

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20 Group members make the case for peer networking

By MIKE MUNZENRIDER

August 2021

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fenderbender.com

What’s the value of support when it comes to running a collision repair business?

How do you delve into learning what you don’t know, or finding out what you don’t know you don’t know?

While reporting an issue of FenderBender, it’s not uncommon to speak to shop operators who rave about the connections made in their 20 Groups, or who recommend we speak to members of those groups because those shop owners know their stuff and can help us with our stories.

August 2021

While 20 Groups, run by independent facilitators or backed by shop vendors, such as paint companies, are a tie that binds FenderBender’s sources, membership in such groups is not nearly as common among its readers, or at least those who responded to the 2021 FenderBender Industry Survey. Just 31 percent of respondents said they were a member of a 20 Group or another peer-networking group.

Could a 20 Group be for you? FenderBender pulled back the curtain to get inside a 20 Group.

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fenderbender.com

S U P P O R T. I D E A S. F R I E N D S H I P.

Through the Storm Because of the support from his 20 Group, Golden West Collision Center owner Joe McKenna (center) was able to successfully navigate the COVID-19 pandemic and keep his team members on staff and busy.

While 20 Groups thrive on bringing members together in person, at central meetings places that require members to travel to remove themselves from their routines, 2020 and the COVID-19 pandemic altered the way group meetings were conducted, making them virtual, like so much else.

The groups are also intimate, both in terms of the relationships forged among members and the business and financial information shared. That can mean that even a top-tier collision repair industry trade magazine can have a tough time getting inside a 20 Group meeting, even in the best of times.

This story was made possible by Sherwin-Williams allowing access to four members from two of its Vision Groups, the paint manufacturer’s spin

August 2021

Initial Remarks

“I hope that we didn’t beat you up too much,” says Elainna Sachire, president of Square One Systems, who facilitates Sherwin-Williams’ Vision Groups.

Her hindsight is directed at Greg McVicker, manager of Budd Baer Collision Center in Washington, Pa., interrupting him as he described his first Vision Group meeting more than a decade ago.

“I didn’t fly out for a pat on the back and for you to give me a hug,” he says, both making a joke and speaking seriously.

It’s an exchange during the video meeting’s introductions that sets the tone and provides a hint of the genuine connections made in a Vision Group.

28

The other shop owners and managers on the call—Billy Coleman, manager of Gullo Ford Collision Center; Joe McKenna, owner of Golden West Collision Center; and Paul Sgro, owner of Lee’s Garage— echo McVicker’s openness and honesty.

Continuing to remember his first meeting, McVicker mentions his shop’s monthly sales at the time of $65,000, commenting that now he’s very disappointed if sales aren’t above $400,000 per month.

It’s proof that he’s grown as a Vision Group member—his sales expectations have increased six-fold— and gotten results from the relationships he’s forged.

One of the main reasons the groups work, members say, is because they create a level of accountability you can’t find on your own.

Long Memories

“She calls you out on your BS,” says Sgro, whose two Monmouth County, N.J., shops have nearly 85 years of history.

fenderbender.com

EWA SAMPLES

Gaining Access

on a 20 Group, in the form of an hourlong video meeting with FenderBender.

The members discussed their experiences with their groups, traded stories, and showed off the camaraderie they’ve built through years of working together to better their shops.

Day In and Day Out For Billy Coleman, collision center director at Gullo Ford Collision, swapping numbers and having in-depth conversations about the financials with his 20 Group members has led to better day-to-day habits while managing the shop.

W H Y ’S IT C A LLE D A ‘ 20 G RO U P? ’

MELANIE HALL

According to the accumulated knowledge of the FenderBender editorial staff, the term “20 Group” dates to the mid-20th century and the proliferation of new car dealers.

As business boomed, dealers were isolated and found little help from the OEMs, so they started working together and founded networking groups, where non-competing dealers from different markets could meet regularly, sharing financials and best practices to help each other grow.

Automakers then took up the practice to help their dealers, with someone, somewhere, determining that 20 members was the perfect number of participants in such groups.

He’s speaking of Sachire, who, as Vision Groups facilitator, has 15-20 years of experience working with many members.

She touts the relationships built throughout that time.

“We have a trust factor, I think,” says Sachire, “and I trust them that when they say something, they’re going to do it.”

Peer pressure has its upside, she says, in that claims made—implementing new processes, expansion, etc.—at previous meetings usually come back to haunt members, in a good way. “‘Hey, didn’t you say you were going to

August 2021

do that two meetings ago?”’ says Sachire of a question often raised at meetings. “We want everybody to get better and do what they say they’re going to do.”

It’s the group dynamic that makes a difference, McVicker says, taking the onus away from the business and making it something personal, amongst friends.

He adds that Sachire writes everything down, too.

“Other than the P&L side of accountability, none of my people know what I said I would do,” he says. “If I go back and decide not to do it, I’m only hurting myself.”

29

Emergency Support

Flashing back more than a year ago to when the reality of COVID-19 was setting in, Sachire says she remembers thinking her Vision Group meetings wouldn’t continue, as lockdowns set in.

While meeting face to face, away from the shop setting is crucial to the meetings’ efficacy, Sachire says the connections group members make between each other became even more important during the pandemic year.

McKenna, who operates a 25,000square-foot shop in Sunnyvale, Calif.,

fenderbender.com

S U P P O R T. I D E A S. F R I E N D S H I P.

W H Y I JO I N E D Greg McVicker Manager, Budd Baer Collision Center

Billy Coleman Manager, Gullo Ford Collision Center

Joe McKenna Owner, Golden West Collision Center

“I started out knowing nothing about the industry,” says McVicker, who got into collision repair working at his fatherin-law’s collision center.

“For me it was, I had a business management and economics background,” he says.

“I knew nothing about the collision industry.”

Remembering his first Vision Group meeting, McVicker says he was “completely unsure of what was going on,” but he came away reassured.

“You understand that there are these issues that are industry-wide,” he says, “that aren’t unique just to your business.”

“We thought we needed to come together to share ideas, share numbers, share ways of doing business around the country,” says Coleman, noting that in his dealership setting, he can be on an island because the rest of the organization knows so little about collision repair.

Without seeking out more information and being curious, Coleman says, there’s no room for growth.

“The person that thinks they know everything is the person that can’t grow at all,” he says.

“I was an estimator who didn’t know how to run a business,” says McKenna, who’d attended 20 Group meetings while working for his father’s business before starting a shop with his wife.

He says he joined the same group as his father and ran each shop’s numbers, side by side.

“One person has ideas, so when you put us all together, the synergy just multiplies by 1,000.”

which brings in $4.8 million per year, says his group and its continued virtual meetings were crucial to him navigating the Paycheck Protection Program. Group members shared which banks were processing loans and which weren’t.

“It made me able to actually get it done,”

August 2021

McKenna says of the support. “Because of the group, they guided me through.”

Sachire says shops in New York City and New Jersey were especially hard hit early in the pandemic, with owners shutting down, feeling beaten up, ready to throw in the towel. The dynamics and backing of their

30

Paul Sgro Owner, Lee’s Garage “At the time you think you know everything,” Sgro says of a body shop owners’ first taste of success. “You don’t know anything!”

Likening the collision repair business to a racetrack, he says it’s easy to think you’re the fastest racer out there, until you get to see others who are lapping you.

“At that point you start to realize you’re not as lean or productive as you should be,” he says.

“You get to a plateau, the ceiling of complexity in your business,” Sgro says. “You think that you’re doing what you think you should be doing—there’s no university, but there is a 20 Group.”

Vision Groups helped check the mental anguish of the moment.

Says Sgro, “You couldn’t ask for a better group to be on an island with … that really kept you sane to get through it, having those calls.”

“Not being alone is probably the most important thing.”

fenderbender.com

Eye on the Team After being surrounded by other visionary leaders, Gullo Ford Collision Center director Billy Coleman (right) has been able to spend less time putting out “fires” and more time managing his team.

Help From Friends Managing the 25,000-square-foot Golden West Collision Center is no easy feat, but owner Joe McKenna has credited his fellow 20 Group members for helping him do just that.

EWA SAMPLES, MELANIE HALL

Dinner, Drinks

Putting the pandemic in the rearview and getting back to meeting in person will be a relief, Vision Group members say.

“I have a technician sitting in my window right now,” says McVicker on the video call. “You don’t have that when you fly away for a day and a half and you’re sitting in a room together.”

For Coleman, of Gullo Ford Collision Center of Conroe Texas, a 22,000-square-foot facility with annual revenue of $5.4 million, the connections made in person and away from “putting out fires’ at the shop allow members to lean on each other between meetings.

“Getting away, being able to just sit around and talk, in our dinners and our bar rendezvous, really helps you to be able to pick up the phone and call somebody and say, ‘I’m struggling. What do you do at your shop?’” he says.

The fact that such connections can be made is no accident. Vision Groups are curated, with similar businesses grouped

August 2021

together. McVicker and Coleman are part of the same dealership group; Sgro and McKenna, as independent shop owners, are together in a different group.

The process to join a group involves interviews with Sachire for vetting before a prospective member attends a meeting, where they give a 20- to 30-minute PowerPoint presentation about themself and their shop. The cost of membership depends on who facilitates the group, travel, and accomodations. The group has final say if the prospect makes the cut.

“We kind of know that they’ll be good for the group,” Sachire says, “but they still have to present and the group still has to be comfortable with them.”

Scaled Economy

Despite the need for fit, a bit of discomfort is part of what fuels success.

“These groups will take you out of your comfort zone,” Coleman says, pointing out that members share their financials, sales

31

forecasts, and more, with Sachire egging them on to improve.

The members are unanimous in their support of Vision Groups and other such peer networking opportunities.

“If you don’t want to be part of a 20 Group with a vision for where you’re going in five years,” says Sgro, “you’re not going to be in the business in five years … you’re not going to be able to survive.”

McKenna says making it through the barrier to entry and into a group is worth it.

“Maybe [the presentation is] a little intimidating, but you really shouldn’t let that get in the way,” he says. “We’re all here to help in these groups and if you want to be a part of it, reach out to one of the members and we’ll help. We want more members because we want more ideas.”

It’s those ideas that are the selling point for McVicker.

“Vision Groups give you an economy of scale on knowledge that you just can’t get anywhere else.”

fenderbender.com

e h t t Me e

FRIENDLY

COMPETITION

On the Road Garage is ready to grow while helping to train the next generation of collision repairers

By MIKE MUNZENRIDER

A S T H E V I D E O C H A T L I N K goes live, it becomes unclear from where Michelle Corson is speaking.

Corson, CEO of On The Road Garage, a collision repair facility in Irving, Texas, could be on a private jet, inside the Space Shuttle, or on the set of a 1990s rap video.

Instead, as she explains, she’s inside her body shop, inside a former paint booth.

As Corson pivots to show off the converted office space, still unexpected but making better sense now, she details a couple cars parked inside it: the first Toyota Corolla manufactured in the U.S., Serial No. 1, alongside a 1962 Toyopet of the same make.

On The Road Garage opened in July last year, with a Dallas location currently under construction.

While some collision repair shop owners are cagey about their future plans, Corson is not. Backed by a $109 million bond issue for expansion, she says in the coming years there are an additional 20 On The Road Garage locations planned for around the U.S. In these days of private equity–backed collision repair, that might be all that needs to be said about a flashy new MSO, though that’s just not the case when it comes to Corson and what she plans to do—her story is more unexpected than that.

August 2021

32

ON THE ROAD GARAGE OWNER:

MICHELLE CORSON

LOCATION:

IRVING, TEXAS

STAFF SIZE:

50 AT FULL CAPACITY, INCLUDING APPRENTICES

SHOP SIZE:

25,000 SQUARE FEET (9,000 SQUARE FEET FOR BODY WORK, 9,000 SQUARE FEET FOR THE PAINT DEPARTMENT)

AVER AGE MONTHLY CAR COUNT:

100

ARO:

$2,800

MONTHLY REVENUE:

$300,000 WITH CAPACITY FOR $500,000

fenderbender.com

MEET THE FR IEN DLY COMPETITION

o G etting m

re

Women

in the industry Go through the org chart at on-

theroadgarage.com and something

jumps out: not only is the body shop woman-owned, it’s largely operated by women, too.

“Some of it’s by design, probably

a fair amount is by accident,” On The Road Garage CEO Michelle Corson

says of the makeup of her company.

Of the leadership positions fea-

tured on the site, eight of ten are held by women.

“I think women need to be more

present in this industry and women need to be more present in more

sizable businesses,” says Corson,

JOHN B. SUTTON, JR.

Shifting Gears

If Corson’s name isn’t familiar, that’s because it shouldn’t be—she says she spent the bulk of her career in finance and commercial real estate.

She describes herself as a developer by background, someone who, “buys the land and puts property on it.”

A decade ago she shifted gears, founding Champion Impact Capitol, a nonprofit aimed at making investments in social enterprises. A couple years later came On the Road Lending, another nonprofit, aimed at helping people with low incomes find reliable vehicles.

With that foundation laid and lifelong love of cars—Corson notes she was even

August 2021

once married to a used car salesman—it was five years ago upon meeting former Service King CEO Cathy Bonner when Corson says she decided to get into collision repair. “[Cathy] started telling me about the collision business and I was like, ‘I love that, I want that,’” she says, noting Bonner later came out of retirement to come on as On The Road Garage’s chief strategy officer.

Despite the nonprofit lending organization with which it shares a name, Corson says On the Road Repair is a for-profit business, but with a twist: the current body shop and the planned locations are committed to training the next generation of collision repairers.

33

who plans to soon grow her single

collision repair location into nearly two dozen.

“Women tend to think small in

terms of starting a business,” she

says, noting the trope of starting a business out of a spare bedroom.

“Women need to be risk-takers and think big.”

Corson offers two reasons why

more women should be interested in collision repair jobs.

“Because it’s a great business …

and secondly, because we need more talented people in this business,” she says, arguing the industry should no longer ignore half the population.

fenderbender.com

MEET THE FR IEN DLY COMPETITION

Outfitting the Shop It's not just the makeup of the staff that's unique at On the Road; the facility boasts state-of-the-art equipment, as well.

From

Apprentice o t

Owner

Though collision repair shops typically tap local high schools and technical colleges for

new talent, On The Road Garage casts a wider net, according to its CEO, Michelle Corson.

With a commitment to training the next generation of technicians baked right into its

business plan, the shop is involved with five U.S. Department of Labor apprenticeship programs, Corson says.

The shop is also under the umbrella of On the Road Companies, which is made up of

eight businesses, two of which are social-minded nonprofits. Corson says the work of the other businesses within the group can help identify potential apprentices.

Should one of those apprentices graduate from the program and decide they want

to open their own shop, Corson says On the Road Sustainability Funds, another of the On the Road Companies, may consider to offer financing help.

August 2021

34

The 25-year-old, 25,000-square-foot former body shop space Corson took over came with two paint booths—the one was repurposed into an office, the other became a dedicated training room.

The booths were replaced with brand new Blowtherms, complete with glass walls (better for training purposes).

She says her and her shop’s commitment to training and education comes from two places.

The first, Corson says, is her years of working with people who have low to moderate incomes and recognizing that the mindset of the last 40 years, that you need a college degree to find financial stability, just isn’t true.

The second is entirely industry focused: the technician shortage.

“It’s a huge issue for the industry,” Corson says. “We’ve got a real aging-out problem—a lot of people who have been in this business have gotten older and we haven’t built up the pipeline of skilled labor.”

She says it does no good for the Calibers and Service Kings to continue to poach people from each other. “We need to get new people into this industry.”

Training aside, that’s not to say On The Road Garage won’t be competing.

Corson says the shop will offer paid, full-benefits apprenticeships with master techs and other skilled workers and DRP repairs; it will teach trainees about life skills and finance, alongside a commitment to repairing smart car technology.

“We’re kind of in a unique space within the industry,” she says. “We are not a school; we’re a commercial business in this industry.”

fenderbender.com

JOHN B. SUTTON, JR.

Committed to Training

Make Yourself at Home In the lobby of On the Road Garage, old car parts that came with the building were painted and welded to create a modern piece of art, befitting of the standout lobby.

y g o l o n h Tec

Oriented On The Road Garage became a

member of CIECA in late May, with

the organization describing the shop as “a tech-focused collision repair business that focuses on electromechanical repair and calibration

services for both conventional and electric vehicles, while protecting the environment.”

Beyond that in-shop work, On

The Road Garage, alongside sister company On the Road Lending, is part of the Vehicle Identity Working Group for the Mobility Open

Blockchain Initiative, which is the in-

dustry’s first standard incorporating blockchain technology into a digital vehicle identification system.

August 2021

‘Don’t Panic’

On The Road Garage repurposed more than the paint booths.

Corson shows off old car parts that came with the building, painted and up on the wall of the shop’s lobby as an art display.

Grates from those old paint booths were welded into parts cages.

New touches include the building’s exterior, painted “On the Road Red,” Corson says, adding that the body of a Toyota Corolla, manufactured at the OE’s Mississippi plant, has been obtained and is going to be installed on the facade of the Dallas shop.

“Everybody who comes in says, ‘I have never seen a body shop like this,’” she says.

While her business is novel in a number of ways—Corson says awareness of it is growing—she says it’s poised, with its planned growth, to take on a much higher profile.

“I very much expect this company is going to get large and people are going to notice what we’re doing,” she says.

35

On the Road Companies is eight businesses—including On the Road Motors, a dealership in Texas—with Champion Impact Capital and on the Road Lending operating in the nonprofit space. The rest are for profit companies.

“We straddle the gray space in between,” she says, explaining where she’s coming from with her work and how she’s comfortable being on both sides.

“I’m 56 and I’ve been very blessed in my life with the work that I’ve done—it’s brought me a lot of opportunity,” Corson says. “My husband says I’m the do-gooder in the family. I’m not, I’m a capitalist. You don’t have to give up one for the other.”

So, yes, On The Road Garage is more than the flashy new MSO. Corson offers her own takeaway.

“Yes, we’re competition,” she says, “but we’re friendly competition because we really want to solve a problem for the industry.”

“When you see us coming into your market—don’t panic.”

fenderbender.com

Automotive Technology Summit DECEMBER 5-7 • NASHVILLE

REAL INFORMATION RIGHT FROM THE SOURCE

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DONNY SEYFER

MIKE ANDERSON

Senior Director of Customer Training, CARQUEST Technical Institute (CTI)

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Owner of Collision Advice

Leading Expert in: Shop Operations, Customer Service, Technology Trends, Industry Insight

Leading Expert in: Automotive Technology, Technology Trends, The Future of the Industry

Leading Expert in: Collision Repair, Estimating, Best Practices (SOPs), Workforce Development

R E G I S T E R T O DAY AT A DA P T S U M M I T.C O M

THE ADAPT: AUTOMOTIVE TECHNOLOGY SUMMIT IS A THREE-DAY EVENT PROVIDING SHOP OWNERS AND OPERATORS WITH A UNIQUE, UNMATCHED OPPORTUNITY TO LEARN DIRECTLY FROM INDUSTRY LEADERS ON THE MOST PROGRESSIVE AND PRESSING TECHNOLOGY TRENDS DISRUPTING THE AUTOMOTIVE AFTERMARKET

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IDEA SHOP

CHARGING FOR ADAS SERVICES

GETTY

With safety a priority, billing for calibration is well received F O R S H O P S L OO K I N G T O invest in bringing ADAS calibrations in-house, the checklist to make sure the system is ready to run effectively is long. Do you have enough space? Are the walls the right color? Is the floor level? Has the shop decided on a

August 2021

scanner, or whether to do static or dynamic calibrations?

After all those things are checked off and ready to go, pricing still needs to be considered. How much should be charged? Should you expect heavy insurance pushback?

37

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JOIN OUR TEAM! Are you looking for a career rather than a job?

At Industrial Finishes & Systems, our rapid growth has created incredible opportunities for our team members. Our experienced employees have enjoyed career advancements that have opened attractive positions in every aspect of our business.

We have a wide range of openings throughout the country. Consider joining the most dynamic, fastest-growing team in the collision repair industry by checking out our current openings. We would love to have you on our team!

Learn more at industrialfinishes.com/now-hiring

*Industrial Finishes is proud to be an equal opportunity workplace and we are an affirmative action employer committed to a safe and drug-free work environment. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, gender identity, sexual orientation, national origin, disability status, protected veteran status, inquiry or discussion about compensation, or any other characteristic protected by law.

PAINT, BODY, AND EQUIPMENT SINCE 1958

S T R AT EGY

IDEA SHOP

How much to charge?

ADAS calibrations certainly can’t be done at a single, fixed price,

says Joshua Fuller, owner of Fuller Auto Body. With manufacturers

needing specific operations done in

specific ways, he says he imagines it would be difficult for pricing to ever become uniform.

Most of the calibrations his shop

does are $300 to $400. But with

plenty of vehicles requiring multiple calibrations, the price calibrations per repair order can top $1500 or

more. Mechanical labor time, vehicle preparation and setup, four-wheel

alignment, resources used to calibrate any system and, post-repair calibration tests make up the full

price. The calibrations are done by

an ASE-certified technician, so labor time and price will vary based on

which technician is doing the calibration. Prices also include any third-

party scans that may be necessary.

Through roughly 250 repair orders in the first month and a half, Fuller says

GETTY

his shop did roughly 50 calibrations.

How do customers feel about paying for calibrations and how much are they willing to spend?

Joshua Fuller, owner of Fuller Auto Body, a 100-year-old collision repair shop in Auburn, Mass., recently found himself answering all those questions.

He says spent about a year and a half researching ADAS calibration before putting his system in place in March of this year.

With advanced driver-assistance systems showing up in more and more vehicles, Fuller says he wanted to be in a position of strength within the industry. Especially as COVID arose, he says he wanted to eliminate as much inconsistency as possible from his business operations, and bringing calibrations in-house was one way to do that.

August 2021

FenderBender spoke to Fuller about what he chose to charge and how it’s been surprisingly well received by customers and insurance companies.

As told to P A U L H O D O W A N I C

Customers prioritize safety over spending.

When we first started doing calibrations, we were very skeptical about whether the insurance companies were going to cover it. They’re something we need to perform as part of the repair—we’re 100 percent liable—so are we going to choose to balance-bill the customer if their insurance doesn’t cover it?

What we found was that when customers purchased their vehicles they did so because they wanted the safety features and the peace of mind that comes with them. People are focused on what ADAS technology is in their vehicle. So when something happens to the vehicle, they know it’s going to need repair and wonder how it’s going to be fixed properly. Very quickly it was refreshing for us because there wasn’t that pushback. Calibration wasn’t seen as unnecessary.

Even when we couldn’t do a customerpay estimate up front, like normal, there wasn’t much fuss. We leave it open ended until we have a complete repair plan and the vehicle is disassembled for

39

repair and we know what calibrations the vehicle is going to need. We have seen so many different instances where that rate changes, or what needs to be done to the vehicle for calibrations changes, and the customers have been fine with it.

The charges get covered.

We got pushback from insurance companies initially, but that was from insurers or individuals who weren’t up to speed on what repairs are required by the manufacturer. Because this is so new, comes down to education. I’d say 99 percent of ADAS calibrations have been covered by insurers and, believe it or not, we weren’t surprised about the lack of pushback.

What’s different about today, compared to five or 10 years ago, is that everyone is on the same page about safety and what is required to make sure vehicles are repaired correctly. In my opinion, top industry organizations, leaders, and vehicle manufacturers are all on the same page—they are delivering the same safety message. It is the biggest priority. For that reason, it’s much easier to get insurers to cover ADAS calibrations compared to any other service. You can’t argue with facts.

We’ve been in business for over 100 years, so we’ve got a lot of good relationships with the insurance companies in our area. We’re extremely transparent in all of our repair practices and that has led to good results.

fenderbender.com

STRATEGY

BAKER COLLISION EXPRESS OWNER:

LARRY BAKER (RETIRED)

LOCATION:

COLUMBIA, S.C.

SHOP LOCATIONS:

3

STAFF SIZE:

50

AVER AGE SHOP SIZE:

10,000 SQUARE FEET

AVER AGE MONTHLY CAR COUNT:

133

ARO:

$2,300

TOTAL ANNUAL REVENUE:

$11 MILLION

MAKE EVERY INTERACTION AN INTERVIEW

it to work,” he says. “Our process gravitates around training the shop owners to screen people out.”

By identifying who you don’t want to hire, you are one step closer to finding out who you do want to hire.

“What many people don’t understand about hiring the best job-fit employee is that a lot of it is how you make them feel,” Bobay says, noting that the process needs to be about building a relationship with potential hires.

“The best way to do that is by making them feel welcomed, treating them with respect, and developing their abilities,” he says.

By CALEB BROOKS

The Process

Design your hiring process so it values people over skills SHOP OPERATORS IN THE collision repair industry know how hard staffing for a specific role can be. The technician shortage is real and too big for a single shop to tackle, but what’s a practical way to deal with the issue?

Enter Norm Bobay, president and CEO of HireMAX, a hiring firm that got its start using a holistic view of the person to match them to a specific company’s role.

“My goal in starting my company was to make the hiring process as easy as possible by matching workers to a job by personality, and not skill,” Bobay says.

Larry Baker, the retired former owner of three Baker Collision Express locations, understands the hiring difficulties inher-

August 2021

ent to the collision repair industry and says he saw immense value in Bobay’s process.

At Baker’s prompting, Bobay developed a hiring program for collision repair that prioritized personality and work ethic over skills.

“Once you have the right people in the company,” says Baker, “you can train them up to perform the job.”

By following a person-over-skills model, you can turn any exceptional person you meet into your next hire.

Where to Start

Bobay says he wanted to create a process that was as easy to use as it possible.

“But the shops really need to buy in for

40

Once a shop owner has a clear idea of what traits their ideal candidate should have, it enables them to ask the right questions to target those desired traits.

“No one will be perfect for what the shop wants, so their initial skills don’t matter because this kind of system creates a process,” says Bobay, “a process that helps identify areas that shop owners and managers can then strengthen in their new hires.”

Shop owners and managers should strive to create a relationship with their employees, he says. Through this relationship, a plan can be created to develop technicians’ skills moving forward.

Break Down Jobs

Baker, who operated his three shops with

fenderbender.com

GETTY

HUMAN RESOURCES

Evolving the Role of A-Techs Larry Baker, the retired former owner of

three Baker Collision Express locations, says he didn’t need to look hard for

hires because he decreased his shops’ dependence on hiring A-technicians.

“A-techs in the hiring market are like

unicorns, if one of them is unemployed

they will be picked up very fast,” he says.

highly skilled technicians and freeing

“The norm for an A-tech, whether

GO

says Baker. “Because we broke the jobs

S.A.

. IN U.

H:

DEAT

G

RNIN

ION

ORMAT FRONT 3

REAR 0

REAR P265/70R17

SPARE P265/70R17

VEHICLE MFD. BY : SAMPLE MANUFACTURER 09 ⁄ 07 GVWR 3945LB GAWR FR 2130LB RR 1835LB TH I S VEHICLE CONFORMS TO ALL APPLICABLE FEDERAL MOTOR VEHICLE SAFETY , BUMPER , AND THEFT PREVENTION STANDARDS IN EFFECT O N THE DATE OF MANUFACTURE SHOWN ABOVE. PASS. CAR 00000000000000000

C ⁄ TR:1F7 ⁄ FD14 ANT10L -ALPGKA A ⁄ TM: -01A ⁄ U241E MADE IN JAPAN

270

A

COLD TIRE PRESSURE SEE OWNERS 303kpa 44psi MANUAL FOR 303kpa 44psi ADDITIONAL 303kpa 44psi INFORMATION

WARNING

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ROTATING SHAFTS ARE DANGEROUS

LIFTGATE HAZARDS CAN RESULT IN CRUSHING OR FALLING

YOU CAN SNAG CLOTHES, SKIN, HAIR, HANDS, ETC THIS CAN CAUSE SERIOUS INJURY OR DEATH.

KEEP HANDS AND FEET CLEAR OF PINCH POINTS

– EXPOSED ROTATING SHAFTS MUST BE GUARDED.

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IF RIDING LIFTGATE, MAKE SURE LOAD IS STABLE AND FOOTING IS SOLID

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WARNING Crush Hazard.

MA XIMUM 18”

Do not exceed maximum capacity of the liftgate.

Overloading may cause sudden liftgate failure o r malfunction causing serious personal injury o r property damage. The maximum capacity of thi s lift is 969 kg or 2000 lb. when the load is centered no more than 18” from the hinge center line of the platform .

COMMERCIAL LABELS Kg

TOTAL 3

ATION FORM OL IN ONTR

ABZ

TIRE SIZE FRONT P265/70R17

FR

.

TIRE AND LOADING INFORMATION

SEATING CAPACITY

HEAVY TRUCK LABELS

The combined weight of occupants and cargo should never exceed 505 Kg or 1114 Lbs.

Stay clear of raised cab.

00

00 0000

Before working under cab engage prop support.

Falling cab may injure o r kill.

Do not paint over this label. Replace if damaged or lost.

N ATIO ORM AR 0 G INFONT 3 RE or 1114 Lbs.

VEHICLE EMISSION CONTROLINFORMATION

Conforms to regulations: 2016 MY U.S. EPA: T2B4 LDV FED OBD II Fuel: Gasoline California: Not for sale in states with California emissions standards TWC/HO2S/WR-HO2S/CAC/TC/DFI No adjustments needed.

2.3L-Group: GFMXV02.3VJW Evap: GFMXR0125NBV

SION N EMIS MATIO e ICLE OR lin VEHROL INF Fuel: Gaso T CON

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PASSENGER VEHICLE LABELS

ADIN

WE HAVE YOUR LABELS!

ATION FORM OL IN ONTR

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that they have higher retention rates and increased worker happiness,” says Bobay, adding that his system is built around training, believing, and investing in your employees.

Baker says that breaking down jobs and finding people who fit them well took pressure off his hiring process.

“Because of the philosophy I use when it comes to creating jobs, I never have had a problem finding my next hire,” says Baker.

“There is no ‘one place’ that I go to find a candidate. My next hire is always the next incredible person that I run into. If they really impressed me, I would pursue them as a hire.”

Baker says if someone were very personable, he’d bring them in to work the front end of the business. If they were more inclined to technical skills, they would be hired to work the shop floor.

“Anybody can be hired for the right price, I was willing to pay so I had a team of high-quality people,” he says. “Other shops weren’t willing to pay and they ended up with staffs full of people they didn’t want.”

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There are multiple benefits to hiring for fit, rather than skill.

“When shops utilize my method of assessing and hiring new employees, they find DS0: R 3 RC: 1 TR SPB D XLE R A 4 5 TVC U K

down, our A-techs could focus on high-

Positive Hiring TP/ PS

AG AIRB ÉRAL SIDNEFLABLE LAT

about $250,000 per year per A-tech,”

skilled tasks.”

SRS

per year. In my shop, we were doing

SIN COUS ) (SRS

they be body or paint, is about $70,000

UA TR T NT: EXT P BRK IN GP WB 4 114

them to focus only on high-level tasks.

R CO KG MOTO / 266725LB WITH TIRESS FORD 5880LB R: 33 RIM LD D. BY GVWR: REAR GAKWG 6SL 1508 70R1 LE MF PSI CO VEH01IC/ 03 27 35LB WITHES P1263X57/.0J kPa/35 TIR 40 2 DATE:NT GAWR: TOR RIMS D AT L AL MO G FRO S L R K E 6 D PSI CO 1240 /70R1 5 BLE FE .

PLICA F001883 P235 .0J a/30 ABOVE P LL AP k T0 16X7 5 HOWN S TO A 0 2 FORM S IN URE S AT E CON DARD UFACT EHICL Y STAN OF MAN 0000 THIS ICV LE SAFETHE DATE 0 000 VEH ON T 000 0 T EFFEC 00000 B 3U51 VIN: E: MPV F05 TYP

Baker would segment employees’

roles, decreasing the need to hire

a staff of 50 before selling to The Boyd Group, says he also believes that skill level shouldn’t be the determining factor when hiring someone for your shop.

He explains that the industry at first liked hiring “combination technicians,” who could handle a car from start to finish. Since then, the industry has pivoted to separating body technicians from paint technicians.

“This single breakdown shouldn’t have been the only one that occurred,” Baker says. “If you have an excellent painter who spends six hours a day prepping to paint, why not hire someone to do that for them?”

Every position in his shops, which brought in $11 million per year, was approached with that mentality, he says. “Due to my philosophy, I never had to look very hard for a hire.”

DO NOT GO UNDER RAISED BODY! OPERATE HOIST CONTROLS AWAY FROM REAR OF DUMP BODY. FAILURE TO COMPLY COULD RESULT IN DEATH OR SERIOUS INJURY.

DANGER CRUSH RISK

Keep hands clear while machine is running.

CAUTION

AUTOMATED EQUIPMENT MAY START UP WITHOUT WARNING

SOUND HORN AND PROCEED WITH CAUTION WARNING

Do not ride on forklift.

TA K E A P H OTO O F T H I S A D.

D I S T R I B U T E T O Y O U R E S T I M AT O R S A N D PA R T S P E R S O N N E L .

ADL OFFERS 3 EASY ORDERING OPTIONS

Upload your photos to the Website www.AutoDataLabels.com

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Contact your local LKQ/Keystone Sales Rep

Email your photos to

Labels@AutoDataLabels.com

DELIVERY IN 1-3 DAYS!

FOR ADDITIONAL INFORMATION ABOUT AUTO DATA LABELS: visit our website at www.AutoDataLabels.com email us at labels@AutoDataLabels.com or call us at (631) 667-2382.

August 2021

41

fenderbender.com

Changing The Repair Process

FOREVER

www.refinishfaster.com

2021 READER'S

CHOICE August 2021

43

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

2021 READER'S

CHOICE

parts dealers

After a year in which everything was turned upside down, many of the same

Dealers special section is here to help you find the right parts, the best dealers and the best prices.

Based on input from over 250 survey participants sampled from the qualified circulation of FenderBender earlier this year, the findings showcase the role of OEM parts buying in the collision repair shop, identify top OEM dealers and reveal why shops choose to work with the best of the best.

challenges remain: how do you provide the best customer service? As drivers continue to maintain their vehicles and keep them longer, knowing where and how to find a reliable parts dealer will be critical to your shop’s success.

The FenderBender Reader’s Choice: OEM Parts

A CLOSER LOOK AT THE RESULTS

The most pressing takeaways from the 2021 Reader’s Choice survey.

OF PARTS ORDERED

BY SHOPS ARE OEM According to survey results, shops predominantly order OEM parts— while aftermarket, salvaged/recycled, and remanufactured parts make up 28 percent of all orders. These results differ by only a few percentage points to the 2020 Reader’s Choice survey (74 percent OEM parts).

August 2021

44

fenderbender.com

WHO IN THE SHOP HANDLES PARTS ORDERING Participants were asked who in their shop takes on the parts ordering, and similar to last year, a majority said that they give this job to parts or production managers.

2020

22%

2021 9% 1%

41% 40%

SERVICE WRITER, ADVISOR OR ESTIMATOR

PARTS OR PRODUCTION MANAGER

27%

4%

3%

1%

19%

33%

0%

TECHNICIAN

OTHER

SHOP MANAGER

OTHER MANAGER

FACTORS INFLUENCING WHO REPAIRERS CHOOSE TO BUY FROM Survey participants rated the following factors with a scale of 1 (lowest) to 10 (highest) on how much each influences their buying decisions. Below is the rating and average score given to each factor.

9.3

9.0

8.9

8.4

7.7

7.5

DELIVERY

EXPERIENCE OR KNOWLEDGE

INVENTORY

PRICE OR DISCOUNTS

PERSONAL RELATIONSHIPS

ABILITY TO ORDER ONLINE

HOW SHOPS TYPICALLY SOURCE AND ORDER OEM PARTS FenderBender asked repairers how they typically source and order their OEM parts. Online parts ordering is heavily preferred, and the percentage of shops ordering online went up 6 percent from the 2020 Reader’s Choice survey.

2020

2021

51% 32%

4% 4% FAX

August 2021

13% 4% OTHER

57%

28%

7% 0% EMAIL

PHONE

ONLINE

45

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

The OEM parts dealers recognized by FenderBender readers

{

IN THE MIDWEST Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin

Acura of Omaha

Brunswick Auto Mart

Fox Motors

Adamson Motors

Carmack Car Capital

Friesen Auto Group

Acura of Troy

Advantage Acura of Naperville Airport INFINITI

All Star Dodge Chrysler Jeep Ann Arbor Automotive Apple Autos

Audi Exchange Audi Kirkwood

Audi Westmont

Auffenberg Dealer Group

Autohaus BMW/MINI of St. Louis AutoNation

Axelrod Buick GMC

Bachman Auto Group Baxter Auto Group Bedford Nissan

Beechmont Automotive Group

Betten Baker Chevrolet Buick GMC Biggers Mitsubishi

Bill Jacobs Auto Group Bill Kay Auto Group

Bill Marsh Auto Group Blossom Chevrolet Blue Springs Ford Bob Brown Auto

Bob Jeannotte Buick GMC Truck Bommarito Auto Group Borton Volvo Cars

Bosak Motor Sales, Inc.

Brad Deery Motors/Deery Brothers Auto Group Brian Bemis Auto Group Brown Motors

August 2021

Burger Chrysler Jeep

}

Friendly Chevrolet

Carousel Motor Group

Gandrud Auto Group

Chilson Motors

Ganley Automotive Group

CJM Automotive Group

Gateway Automotive

Classic Auto Group

Gerald Auto Group

Cleveland Motorsports

Germain Automotive Group

Countryside Mitsubishi

Gezon Motors

Courtesy Subaru

Crown Automotive Group Dan Pfeiffer Automotive

Dave Kring Chevrolet Cadillac Dave Wright Auto

De Nooyer Automotive Family Dick Scott Dodge

Dick Wickstrom Chevrolet Don Franklin Auto Group Don Miller Auto Group

Dondelinger Auto Group Dorsett Automotive Dreyer & Reinbold

Gorges Volvo Cars

Griffin Automotive Group Halleen Kia

Harvey Automotive Hawk Auto

Hendrick Automotive Group Hiller Ford

Holz Motors

Honda Superstore of Lisle Huber Chevrolet Cadillac Hummel's Nissan

INFINITI of Grand Rapids International Autos

Eau Claire Ford

Inver Grove Honda

Ed Bozarth Chevrolet

Ed Martin Automotive Group Ed Rinke Chevrolet

Eden Prairie Nissan

Inver Grove Toyota Jack Phelan

Jaguar Land Rover Cincinnati

Jake Sweeney Automotive Group

Edwards Auto Group

Jay Auto Group

Elder Auto Group

Jay Wolfe Automotive Group

Erhard BMW

Jeff Belzer's Auto Group

Fairmont Ford

Jim Butler Auto Group

Federico Kia

Jim Shorkey Auto Group

Fletch's of Petoskey

Joe Machens Dealerships

Fox Automotive Group

John Paul's Automotive

46

fenderbender.com

MIDWEST Joseph Auto Group

Milosch's Palace Chrysler Dodge Jeep Ram

Serra Automotive

K & J Chrysler Dodge Jeep Ram

Montrose Auto Group

Shaheen Automotive Group

Junge Automotive Group Karl Knauz Autopark Ken Vance Motors Kia of Lansing

Kings Automall Kline Volvo

LaFontaine Automotive Group Land Rover Lake Bluff Lasco Auto Group

Laurel BMW of Westmont Lexus of Lexington Lexus of Louisville

Lexus of Mishawaka Lexus of Orland

Liberty Auto City

Liberty Auto Plaza

Liberty Superstores Lithia Motors

Lou Fusz Automotive Network Louisville INFINITI Lunde Auto Center

Lupient Automotive Group Luther Automotive Group Maple Hill Auto Center

Markel Automotive Group Markquart Motors

Matteson Auto Mall

McGrath Automotive Group

McGrath Family of Dealerships Mentor Imports Mentor Nissan

Mercedes-Benz of Novi

Mercedes-Benz of St. Charles Mercedes-Benz of St. Louis

Mercedes-Benz of Traverse City Mercedes-Benz of Westmont Merit Chevrolet Metro Lexus

Metro Toyota Midwest Kia

Mike Castrucci Auto Mall Mills Automotive Group

August 2021

Minot Automotive Center Moran Chevrolet

Serra Traverse City Sharp Parts

Morrie's Auto Group

Shawnee Mission Ford

Motor City MINI

Shawnee Mission Kia

Motorcars Auto Group

Shottenkirk Automotive Group

Moxie Mitsubishi

Smart Automotive of Davenport

Muller Auto Group

Mungenast Automotive Family Muscatell Automotive Group Napleton Automotive Group Newbold Toyota BMW Nissan of Canton

North Olmsted Chrysler Jeep Dodge Ram O'Brien Auto Team

O'Brien Automotive Family Orrin B Hayes Auto Group Park Chrysler Jeep

Patrick Dealer Group

Smart Motors

Spartan Auto Group

Stew Hansen Hyundai Suburban Collection Sunset Hills Subaru Sunshine Toyota

Suntrup Automotive Group

Superior Automotive Group Superior Honda of Omaha The Kia Store

The Sharpe Collection Tom Kadlec

Paul Miller Ford

Penske Automotive Group Penz Automotive Group Plaza Motors

Porsche Exchange

Tom Wood Automotive Group Toyota of Des Moines Valley Imports Van Autoplex

VanDevere Chevrolet Kia

Prestige Auto

Varsity Automotive Group

Pugi Auto Group

Ralph Thayer Automotive

Resnick Automotive Group Richardson Motors Riley Subaru

Victory Automotive Group Village Point Toyota

Volkswagen of Clarksville Volvo Cars Lisle

Volvo Cars of Louisville

Rizza Cars

Waikem Auto Family

Rochester Motor Cars

Weir Automotive Group

Rosedale Chevrolet

Rosen Automotive Group Roseville Buick GMC

Roseville Midway Ford

White Allen Auto Group White Bear Mitsubishi Wilde Automotive

Williams Traverse City

Rusty Eck Ford

Willis Auto Campus

Ruxer Ford

Witham Auto Centers

Rydell Automall

Woodfield Nissan

Saxon Auto Group

Schlossmann Auto Group Schmelz Countryside

Sears Imported Autos

47

Woodhouse Auto Family Zeigler Auto Group

Zimbrick Automotive

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

THE MIDWEST DEALER PERSPECTIVE: FenderBender reached out to a few of the top OEM parts dealers in the Midwest region to take a deeper look at who these suppliers are, what makes them stand apart, and how they see the industry moving forward after the challenging past year.

CHRIS SLACK

Parts Manager Gandrud Chevrolet Green Bay, Wis.

DENNIS CROONQUIST

GREG HALL

Parts IT Director Borton Volvo Cars Golden Valley, Minn.

Parts Manager Luther Family Ford Fargo, N.D.

HOW LONG HAVE YOU BEEN IN THE INDUSTRY, AND WHAT IS THE BIGGEST CHANGE DURING THAT TIME? CHRIS SLACK: I began working at a dealership as a technician after graduating high school. After about three years as a technician I switched over to parts, and then started at Gandrud Chevrolet in 1989. I spent six years at one of our sister stores in Nebraska but other than that, I've been here ever since.

The transition from paper catalogs to computerized catalogs was a huge change for the industry. Another big change has been the frequency of parts deliveries.

Shops used to get a delivery once a week, but are now used to getting deliveries twice a day.

August 2021

DENNIS CROONQUIST: I’ve been in the industry for 47 years. I’ve always been interested in Volvos, when I was a kid I actually tried to get my dad to buy one. When I went to the University of Minnesota I visited Sweden to see my relatives and ended up liking Volvos even more. Once I graduated from college, I started to work here at Ford and Volvo in 1974. Seeing front-wheel drive and then all-wheel drive was one of the biggest shifts that I noticed. It's something that is ubiquitous now and everyone has it, but that was big. Technology just keeps advancing every year.

48

GREG HALL: I’ve been in the industry for 32 years. The biggest change has been how to look up parts; it used to be a book, and then microfiche, and then an electronic catalog, and now we use a very sophisticated digital VIN catalog.

It was a huge leap; now you get all the vehicle’s relevant info in addition to the parts numbers. I don’t know how it could be any better in the future, but it’s pretty good now.

fenderbender.com

WHY DO YOU BELIEVE COLLISION REPAIRERS CONSIDER YOU A LEADING PARTS DEALER? CHRIS SLACK: We really try hard to take care of our customers, we want to make it easy to do business with us. I tell my counter guys that when a shop calls looking for a part, instead of telling them when they will get it, ask them when they need it. We also work to keep everyone up to date with training clinics. Customers appreciate that if we happen to be out of a part that they need the next day, we'll pay to overnight ship it to them. We also have no hassle returns.

DENNIS CROONQUIST: Ever since the very beginning when I started working here, service has been big. We want to get customers their parts as quickly as possible. We have customers from all over the United States, even Hawaii, that buy from us, and we emphasize that we ship everywhere.

We also get our customers their correct part, the first time. I think that emphasis on helping our customers has really helped us over the years.

GREG HALL: I’ve got a great group; we employ nine knowledgeable parts advisors with a net 178 years of experience. I also have a $1.2 million Ford parts inventory, which makes for same-day or near-same-day parts fulfilling experience for customers. We don’t wait around for much and neither do our customers.

August 2021

HOW HAVE THE EVENTS OF THE PAST YEAR AFFECTED THE INDUSTRY?

WHAT CHANGES DO YOU SEE IN THE NEXT FIVE YEARS FOR THE INDUSTRY?

CHRIS SLACK: It has been a frustrating, nerve-racking, but highly successful year for us. I think a lot of the success is because of how we take care of our customers. We've spent a lot of the year hunting down parts for our customers so they can have them when needed. But I miss the days where we could order a part from GM and it would just show up—that doesn't happen anymore.

CHRIS SLACK: I see a lot of changes coming up, especially with electric vehicles. There aren't many repair parts for EVs so I think the business is in for a big shift. There's still gonna be a lot of internal combustion engine vehicles on the road but electric cars are going to start creeping in soon.

DENNIS CROONQUIST: The past year definitely affected our business because people weren't getting their cars repaired as much. But we're inching up with more sales and more people calling and emailing us to fill orders. Sales are continuing so that means that part sales will increase as well as service.

GREG HALL: This year has been challenging for backordered parts.

Some parts are impossible to find, such as grilles and other larger structural components. It varies. At Luther Family Ford, when the pandemic first started, we went on split shifts and worked one week on, one week off. We did that for about a month and after that it was business as usual. The first month’s numbers dropped and after that they stayed steady. It’s really stayed steady— we never had to cut anybody.

49

DENNIS CROONQUIST: There will definitely be an emphasis on electric hybrid cars and an increase in the infrastructure for people to be able to charge them. But I’m hedging my bet on whether that will work in Minnesota, as well as the rest of the nation. There's a debate in Sweden about electric vehicles not being able to drive very far and when it's 20 degrees or lower. So I think that Volvo would be able to switch right back to gasoline engines easily.

GREG HALL: We’re going to see a big change in the form of electric vehicles.

There will be less engine sales, less fuel components and even quick-lane sales could drop. I think the other thing is finding enough employees to do our trade; there’s not necessarily a next generation that’s easy to identify. High schools aren’t promoting the trade in lieu of technology or four-year degrees.

The trades are disappearing.

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

The OEM parts dealers recognized by FenderBender readers

{

IN THE NORTHEAST

#1 Cochran Automotive

Bowser Automotive

Empire Automotive Group

Acme Nissan

Brown-Daub Dealerships

Ertle Cars

A & T Chevrolet Subaru Acura of Westchester Albrecht Auto Group

Alexandria Volkswagen

Allen Mello Chrysler Jeep Dodge Ram Apple Automotive

Artioli Chrysler Dodge Ram Asbury Automotive Group Audi Brooklyn Audi Queens

AutoFair Automotive Group AutoNation

Autoworld Kia

Baglier Buick GMC Mazda Baierl Automotive

Balise Auto Group Baron Honda

Bay Ridge Chevrolet Belknap Subaru

Benzel-Busch Motor Car

Bergey’s Auto Dealerships Berglund Automotive

Berlin City Auto Group Bernardi Auto Group Best Chevrolet

Beyer Auto Group Bical Auto Mall

Biener Audi Ford

Bill Dodge Auto Group

Blaise Alexander Family Dealerships BMW MINI of Manhattan

BMW MINI of Southampton BMW of Bayside

BMW of Bridgewater BMW of Darien

BMW of Ridgefield

BMW of the Main Line Bob Bell Automotive

Bob Wade Autoworld

Bobby Rahal Automotive Group Boch Automotive Group

August 2021

}

Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia Brooklyn Chrysler Jeep Dodge Ram Brown's Car Stores

Burlington Auto Group

Buzz Chew Chevrolet Cadillac Cape & Islands Autos Cavalier Auto Group

Central Avenue Chrysler Jeep Dodge Cherry Hill Dodge Chrysler Jeep Cherry Hill Imports Auto Group Ciocca Dealerships City Side Subaru

Empire Ford

Euro Motorcars Company Euroclassics Porsche Fairfax Hyundai

Faulkner Automotive Group

Fitzgerald Auto Mall Frederick

Flemington Car & Truck Country Flow Automotive

Fred Beans Automotive Group Fuccillo Automotive Group Gates Automotive Group

Classic Audi

CMA's Colonial Auto Center CMA's Valley Dealerships

Colonial Chrysler Jeep Dodge Colonial Toyota

Colussy Chevrolet

Competition Auto Group Contemporary Motorcar Copeland Toyota

Courtesy Auto Group

Generation Kia

Gengras Motor Cars Glen Toyota

Goodwin Motor Group

Grappone Automotive Group

Greenbrier Dodge of Chesapeake Group 1 Automotive

Habberstad BMW MINI

Hanania Automotive Group Healey Brothers

Cowles Auto

Crestmont Family of Dealerships Criswell Auto

Crossroads Automotive

Hendrick Automotive Group

Herb Chambers Dealerships Hillview Motors

Hoffman Auto Group

Curry Automotive

Dan O'Brien Kia Group

Daniels BMW MINI of Allentown Darling's Auto Group

Davies Ford of Charleroi DCH Auto Group

DePaula Auto Group

Diehl Automotive Group Don Rosen Imports

Donaldsons Volkswagen Subaru Douglas Auto Group

Dover Dodge Chrysler Jeep Ram Downeast Toyota Eagle Auto Mall

Eastchester Chrysler Jeep Dodge Emerling Dealerships

50

Hoselton Auto Mall Huber Motor Cars

Hudson Valley Volkswagen Hyman Bros. Automobiles Ide Family of Dealerships Imperial Cars

INFINITI of Syracuse Inskip Automall

International Cars, Ltd. Ira Motor Group

Jack Daniels Motors

Jaffarian Automotive Group

Jaguar Land Rover Chantilly Jeff D'Ambrosio Auto Group

Jerry's Auto Group Baltimore Jerry's Auto Leesburg

fenderbender.com

NORTHEAST Jim Koons Automotive Group Jim Shorkey Auto Group JLR Long Island

Kaplan Auto Group Karp Automotive Keenan Motors

Kelly Automotive Group Kia of West Chester

Kundert Volvo Cars of Hasbrouck Heights Lehigh Valley Automotive Lexus of Cherry Hill

Lexus of Southampton Lia Automotive Group

Liberty Family of Dealerships Lithia Motors

Long Automotive Group Loyalty Automotive

Lyon-Waugh Auto Group

MacMulkin Chevrolet Cadillac

Maguire Family of Dealerships Malloy Automotive Group Manhattan Motorcars Marty's Buick GMC

Mastria Auto Group Mattie Imports

Maxon Auto Group Mazda of Lodi

McGovern Automotive Group McLaughlin Chevrolet Medford Ford

Mercedes-Benz of Arlington

Mercedes-Benz of Fort Washington Mercedes-Benz of Massapequa Mercedes-Benz of Newton MetroWest Subaru

MileOne Autogroup Miller Auto Group

Miller Ford Lincoln Subaru MINI of Fairfield County MINI of the Main Line

Napleton Automotive Group Napoli Motors

New Country Motor Group New Holland Automotive

Nielsen Automotive Group Northstar Auto Group Nucar Connection

Open Road Auto Group Otis Ford

Ourisman Automotive Group

Outten Family of Dealerships

August 2021

Packer Norris Parts

Somersworth Auto Group

Park Avenue Auto Group

Stephen Auto Mall

Page Auto Group

Passport Auto Group

Paul Miller Auto Group

Penske Automotive Group Pepe Auto Group

Performance Ford Lincoln Piazza Auto Group

Platinum Volkswagen

Pohanka Automotive Group Porsche Annapolis

Porsche Gold Coast

Porsche of The Main Line

Potamkin Automotive Group

Premier Companies Cape Cod Prestige Motors

Price Automotive

Prime Automotive Group Quirk Auto Group

Radley Automotive Group Rafferty Subaru

Rallye Motor Company

Ray Catena Auto Group Reydel Volkswagen Richmond Ford

Sonic Automotive Sunnyside Acura Sunrise Toyota Sussex Honda

Sussman Automotive Tantillo Auto Group

Tasca Automotive Group Team Nissan

Ted Britt Automotive Group Teddy Nissan

The Thompson Organization Thompson Automotive Timbrook Automotive Titan Motor Group

Tom Hesser Auto Group Town Motors

Towne Auto Group

Toyota of Hackensack Tracy Volkswagen

Trend Motors Volkswagen Tri-City Cars

Tri-State Luxury Collection Tulley Automotive Group

Turnersville Chrysler Jeep Dodge Ram

Riverhead Auto Mall

Umansky Automotive Group

Riverhead Bay Motors

Valenti Hartford

Riverhead Dodge

Van Bortel Cars

Riverhead Motors

Rockingham Auto Group Rockville Centre GMC Rohrich Automotive

Rosenthal Automotive Group

Route 1 Chrysler Dodge Jeep Ram of Lawrenceville Safford Automotive Group Sarat Ford Lincoln

Schultz Ford Lincoln

Security Dodge Chrysler Jeep Ram Sendell Motors

Sewickley Car Store

Van Syckle Kia

Victory Automotive Group Village Automotive Group VIP Automotive Group

Vision Automotive Group Viti Mercedes-Benz

Volkswagen of West Islip Volvo Cars Annapolis Volvo Cars of Exeter

Volvo Cars White Plains Wagner Motors

Waldorf Auto Group

Sheehy Auto Stores

Wellesley Toyota

Shults Auto Group

White Plains Volkswagen

Six Sigma Auto Group

Smail Automotive Group Smithtown Acura Smithtown Kia

Wide World of Cars

Wilkins Automotive World Auto Group Wynn Auto Group

Smithtown Nissan

Yonkers Kia

Smithtown Toyota

Smithtown Volkswagen

Younger Motor Cars

Smithtown Volvo

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fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

THE NORTHEAST DEALER PERSPECTIVE: FenderBender reached out to a few of the top OEM parts dealers in the Northeast region to take a deeper look at who these suppliers are, what makes them stand apart, and how they see the industry moving forward after the challenging past year.

CHRIS SALGADO

Parts Department Manager Open Road Chevrolet Union, N.J.

JEFF SCHWEITZER

Parts Director Pohanka Automotive Group Forestville, Md.

ED KENNEDY

Parts Manager Rockland Chrysler Jeep Dodge Ram Nanuet, N.Y.

HOW LONG HAVE YOU BEEN IN THE INDUSTRY, AND WHAT IS THE BIGGEST CHANGE DURING THAT TIME? CHRIS SALGADO: I’ve been in the industry since 2010. I used to be a mechanic, but then became interested in working in the parts department.

Working in parts is new and different every day—you never know what you are walking into. The biggest change I’ve seen in the industry has been the growing incorporation of technology. Stock orders can now be generated for you, there are digital catalogs, and online ordering has grown a lot recently. It all makes my job a lot easier.

August 2021

JEFF SCHWEITZER: I’ve been in the industry for the same amount of time that I’ve been here at Pohanka, so over 39 years. I started out as a parts driver in 1982 and then worked my way up. There’s been a lot of changes in the industry. A big change is that we now have to really dot our i’s and cross our t’s. Our customers, big and small, need parts as fast as possible, which is different from the past. There is so much more pressure on our customers because of the insurance companies, so we have to be extremely efficient.

52

ED KENNEDY: I started working in the industry in 1970. My father had a car dealership and had me working in the parts department. I came to Rockland Chrysler Jeep Dodge Ram around 9 years ago. The biggest change in the industry has been the advanced technology in vehicles today. The electronics in vehicles are totally different than they were even 10 years ago which has made things a lot more complicated as far as figuring out which parts the customers need.

fenderbender.com

WHY DO YOU BELIEVE COLLISION REPAIRERS CONSIDER YOU A LEADING PARTS DEALER? CHRIS SALGADO: We’re shocked and excited about being a Reader’s Choice winner, it’s our second year winning but we still didn’t expect it. We’re a very small dealership, there are only four of us here. But we treat every single customer well and equally, it doesn’t matter to us if the customer is a small shop or a giant facility.

JEFF SCHWEITZER: We’re really focused here; we come in at 3:30 a.m every day to start with orders. We get everything scanned in and sorted out and done by 6:30 a.m., and drivers out by 7 a.m. That gives us the opportunity to get to places twice a day—whether they are 5 minutes or 4 hours away.

And our inventories are so large that it allows us to get the parts to our customers quickly.

ED KENNEDY: We are a growing dealership and we try to deliver superior service. We’ll do anything to get a customer their parts—if it’s out there, we’ll find it. We also have a lot of countermen here that have just as much experience as me. Most of the guys here have been in the business for over 30 years. They have a lot of knowledge from older days, all the way up to now because they keep up to date with training.

August 2021

HOW HAVE THE EVENTS OF THE PAST YEAR AFFECTED THE INDUSTRY?

WHAT CHANGES DO YOU SEE IN THE NEXT FIVE YEARS FOR THE INDUSTRY?

CHRIS SALGADO: The past year has definitely changed how we sell parts.

E-commerce has blown up in the past few years, and ordering parts online has become more of a norm. Before the pandemic, not many customers were ordering online, but that has really grown and makes selling parts easier and faster for everyone.

CHRIS SALGADO: OEMs are starting to produce full lines of electric vehicles, so we’ll be seeing more EVs on the road in the next five years. The push to electric will change the training we’ll have to go through—you can’t sell parts without training. We are still in the early stages of EVs, but they have a lot less moving components so that will impact the industry.

JEFF SCHWEITZER: Right now, Hyundai has over 300 lines—or part numbers—that are on backorder. There are several reasons for that shortage, but it started with a packaging strike over in Korea in late 2020.

Vendors have just been having issues recently too. What we try to do is give customers the option for us to go and pick up parts from other stores. We go above and beyond to try and locate parts as quickly as possible.

ED KENNEDY: The biggest thing that's affected our industry recently has been the availability of parts. There’s a shortage in the actual body parts of the car, the electronics, and the modules— they’re just not available. A lot of the plants shut down for a month or two last year which created a big lag in the availability of parts. But business has definitely improved in the last few months after the difficult year.

53

JEFF SCHWEITZER: I think the biggest challenge in the next few years will be getting people into positions in the industry, and encouraging them to stay. Finding people to be body technicians or to work in parts is going to be more of a challenge.

ED KENNEDY: The industry is changing a lot, and the materials that they're using to build vehicles are changing. More electric vehicles are coming up, although they say it’s only a small percentage that will be on the road. From what I’ve been seeing there will be a lot less parts involved and more safety features in the elevestric vehicles—which means less accidents.

The future is just that, the future, but it's coming, and it's coming fast.

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

The OEM parts dealers recognized by FenderBender readers

{

IN THE SOUTH Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas

Acura INFINITI of Baton Rouge

Coral Springs Auto Mall

Gossett Motor Cars

Allen Samuels Auto Group

Crain Automotive Team

Gray-Daniels Automotive Group

Audi Lafayette

Crest Volvo Cars

Baldwin Motors

Crown Automotive Group

Barnett Auto Group

Day's Chevrolet

Benchmark Automotive Group

DeMontrond Automotive Group

Bob Howard Auto Group

Don Herring Mitsubishi

Bob Moore Auto Group

Don Williamson Nissan

Braman Motorcars

Ed Voyles Auto Group

Brian Harris Auto Group

Fairway Automotive Group

Carlton Motorcars

Finnegan Auto Group

Central Kia of Plano

Fowler Automotive Group

Century Automotive Group

Fredy Kia

Chevyland

Gallatin Honda

Classic Chevrolet

Gary Force Acura

Coggin Automotive Group

Germain Cars

All Star Automotive Group

Covert Auto Group

Ancira Auto Group

Crescent Ford Trucks

AutoNation

Crossroads Automotive Group

Banner Chevrolet

Dallas Dodge Chrysler Jeep

Bartow Ford

DeLand Kia

Bill Gatton Automotive Group

Don Carlton Auto Group

Bob Mills Mitsubishi

Don Thornton Automotive

Bradshaw Automotive Group

Ed Morse Automotive Group

Brandon Ford

Eddie Tourelle's Northpark Hyundai Nissan

Capital Automotive Group

Ferguson Superstore

Cavender Auto

Flow Automotive

Century Auto Mall

Fox Auto Team

Chatham Motor Sales

Fuccillo Automotive Group

Classic BMW

Garcia Auto Group

Clay Cooley Auto Group

Gerald Jones Auto Group

Continental Automotive Group

Gillman Automotive Group

August 2021

}

Grainger Automotive Group

Greenville Chrysler Dodge Jeep Ram Greenville Luxury

Greenway Auto Group

Grieco Automotive Group Group 1 Automotive

Gullo Automotive Group

Hanania Automotive Group Harper Volkswagen

Helfman Auto Group

Hendrick Automotive Group Hicks Auto Group Hixson Autoplex

Hodges Motor Company

Holler-Classic Automotive Group Hollywood Chrysler Jeep

Holman Automotive Group Hoy-Fox Automotive Hub Auto Group Hub City Ford

Hudson Automotive Group Huffines Auto Dealerships Hunter Automotive Group Hyundai of Anderson

Jackie Cooper Imports

Jacksonville Chrysler Jeep Dodge Fiat

54

Jaguar Land Rover Bluff City Jeff Smith Auto

Jim Burke Automotive

Jim Cogdill Dodge Chrysler Jeep Ram

fenderbender.com

SOUTH

Jim Hudson Automotive Group

Momentum Auto Group

Scott Clark Auto Group

Jim Norton Auto Group

Moritz Kia

Service Chevrolet

Jim Keras Auto Group

Joe Maus Automotive Group Jordan Ford

Kahlig Auto Group Keffer Auto Group

Kelly Grimsley Auto Group

Ken Garff Automotive Group Ken Wilson Ford

Kendall Dodge Chrysler Jeep Ram Kia of Greenville

Kia of Orange Park

Krause Auto Group

Lance Cunningham Ford Landers Auto Group

Landmark Automotive Group Lee Motor Company

Leith Automotive Group

Lejeune Motor Company Lexus of Huntsville Lexus of Memphis Limbaugh Toyota Lithia Motors

Long-Lewis Automotive Group Mac Haik Auto Group

Marc Miller Buick GMC Mark Jacobson Toyota

Matt Bowers Auto Group

Mazda of South Charlotte McRee Ford

Melbourne Motor Cars

Mercedes-Benz of Baton Rouge Mercedes-Benz of Collierville

Mercedes-Benz of Coral Gables

Mercedes-Benz of Winston-Salem Miami Lakes Automall

Mike Maroone Chevrolet Mills Automotive Group Mission Chevrolet Modern Auto

August 2021

Morgan Automotive Group Napleton Automotive Group North Freeway Hyundai Northside Auto Group Orlando Volkswagen

Serra Auto Group

Seth Wadley Auto Group

Sewell Automotive Companies

Shottenkirk Automotive Group Sonic Automotive

Palmer's Auto Group

Paretti Family of Dealerships Parks Automotive Group Parkway of Wilmington Payne Auto Group

Sons Auto Group

Southern Motors Savannah

Southern States Automotive Southpoint Volkswagen Southwest Kia

Payne Chevrolet

Spikes Ford

Peacock Automotive

Stivers Decatur Subaru

Pegues Hurst Motor

Penske Automotive Group Piedmont Auto Group

Potamkin Automotive Group Powell Watson Motors

Price LeBlanc Automotive Principle Auto Group Ralph Hayes Toyota

Ralph Sellers Auto Group

Randy Marion Automotive Group Ray Brandt Auto Group Ray Varner Ford

Reeder Chevrolet

Reeves Import Motorcars Regional Hyundai

Rick Case Automotive Group

Riverside Ford Lincoln of Macon RML Automotive

Roger Williams Chrysler Jeep Dodge Ram Royal Auto Group

Russell & Smith Auto Group Rusty Wallis Volkswagen Sam Pack Auto Group Sames Auto Group

Subaru South Blvd

Superior Subaru of Houston Tameron Automotive Group Team Automotive Group Team Chevrolet

Team Gillman Auto Group Ted Russell Ford Lincoln Tomball Auto Group

Tommie Vaughn Ford Town East Ford

Toyota of North Charlotte

Troncalli Automotive Group Tropical Ford

Turan-Foley Chevrolet

Vanguard Automotive Group Viva Auto Group

Volkswagen of Corpus Christi

Volkswagen of South Charlotte Walker Automotive

Warren Henry Auto Group Werner Automotive Group Williams Chevrolet Wilson Motors

Wolfchase Chrysler Dodge

Scenic Chevrolet

Schumacher Auto Group

Wolfchase Honda Nissan

Scoggin-Dickey Auto Group

55

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

THE SOUTHERN DEALER PERSPECTIVE: FenderBender reached out to a few of the top OEM parts dealers in the South region to take a deeper look at who these suppliers are, what makes them stand apart, and how they see the industry moving forward after the challenging past year.

AMABLE VALLE

Parts Manager Gus Machado Ford of Hialeah Hialeah, Fla.

JERAD BALLARD

Parts Manager Marc Miller Buick GMC Tulsa, Okla.

TODD OLIVEIRA Parts Manager Hodges Mazda Ford Jacksonville, Fla.

HOW LONG HAVE YOU BEEN IN THE INDUSTRY, AND WHAT IS THE BIGGEST CHANGE DURING THAT TIME? AMABLE VALLE: I’ve been working in the industry since 1984. When we went to digital, it changed everything. Digital has made it a lot easier for us and the counter guys, though the competition has changed too; now it’s a race to the bottom.

The internet made sales harder because customers became smarter and more informed. Now the counter guys know that the person on the other end of the phone has checked around and you have to be more transparent, which actually makes it easier in the long run. This business is all about relationships; once you build up the relationship and you’re honest with your clients—and they know you’re selling them the right parts at an agreed competitive price—whatever you say after that will probably go. They’ll be on your side and they’ll believe you.

August 2021

JERAD BALLARD: Twenty-five years.

The biggest challenges have been the GM strike and then COVID; the shortage of parts has been significant as well. The strike was just a few years ago and it just killed production and inventory of parts.

We have $4 million of inventory and it dropped to $1 million. GM just couldn’t get us parts and our customers rely on that network. Two or three weeks would go by without parts shipments. That was a big issue for us and for all of the wholesale dealers. Then the pandemic hit! I hope we’re headed back to normal.

Thankfully our inventory is back to where it’s supposed to be.

56

TODD OLIVEIRA: I’ve been working here since 1983. We’ve undergone a lot of changes, from mechanical engines, electronics, fuel electronics, straight chassis to A-frames, aluminum bodies, even seat belts. The technology has evolved so much as well as the aerodynamics about how they were built. The frames and bodies are easier to assemble now than they were then, but the electronics are a whole different matter.

fenderbender.com

WHY DO YOU BELIEVE COLLISION REPAIRERS CONSIDER YOU A LEADING PARTS DEALER? AMABLE VALLE: We don’t service the whole state. We’ve concentrated on Miami Dade county and we offer good service and we’re competitive; we’re not the lowest but we are competitive. We have a decent inventory. Gus Machado has been here since the early ’80s.

He’s got a good reputation and is well known. Everyone knows who we are and it’s good for us. We’re well known in Latin America, too.

JERAD BALLARD: We have fourteen of the most knowledgeable sales staff in the industry—twelve inside and two outside salespeople. They have decades of GM parts experience, and our #1 goal is to make sure customers receive the right part the first time.

TODD OLIVEIRA: I would say our customer service. We make sure quality parts are delivered to every customer. We update our customers every 24 hours about the status of their orders. We consider other dealerships customers too; we don’t pass on costs from what we buy from dealer to dealer. We have a broad customer base, and we work well with insurance companies, especially on the body side.

We always look for programs where we can get the OEM product at the price without passing it on; we don’t want to create problems for their customers with non-OEM products as well.

August 2021

HOW HAVE THE EVENTS OF THE PAST YEAR AFFECTED THE INDUSTRY?

WHAT CHANGES DO YOU SEE IN THE NEXT FIVE YEARS FOR THE INDUSTRY?

AMABLE VALLE: The first month was difficult; sales performance took a big hit. Many dealerships slowed down. But we cleaned constantly, required masks, bought a compressor and anti-microbial materials, and slowly we started coming around. At the beginning of this year we had the best month we’ve ever had. It’s going to get really expensive; people are going to have to repair their cars and use them longer.

AMABLE VALLE: Hopefully I’ll retire! Older dealership professionals will move on and the next tech-savvy generation will arrive and work through the internet. Our business and industry is going to be a lot more regulated through online orders. You’re going to have to ensure good tracking and fulfillment, and we’re already doing a lot of that. Everything will be online and customers will demand more. The next generation has grown up with smartphones and tablets. They can handle it. It wasn’t any different for me; from catalogs to microfilm to digital.

It’s always a learning process.

JERAD BALLARD: It’s negatively affected the new car market. It hasn’t really affected our wholesale parts business, but the new car lots are empty. Every dealer in town lacks new inventory due to the microchip shortage. It hasn’t affected our business much, however, and it may have even helped our wholesale business because everyone has been fixing their cars.

The 11-year average of cars on the road will probably increase as new sales have dropped.

TODD OLIVEIRA: Actually it’s helped us; we actually picked up business during COVID. Social media and Microsoft Teams helped us connect to our customers and helped us identify the right parts in a time when we couldn’t get together. I think the hardest challenge now is parts availability, though I think many dealerships will experience a swift return to pre-COVID operations. I think we’ll see more automated systems, especially with body shop vendors or partners dealing with customers.

57

JERAD BALLARD: We’ve been increasing sales the past three years, and I think we’ll increase year over year for the next several years; people are hanging onto their vehicles and repairing them, and there are a lot of great dealerships and shops out there providing service to those people and their vehicles. I think the next five years will be great for body, mechanical and dealer parts sales.

TODD OLIVEIRA: Everybody is switching over to EV. Battery-operated vehicles are going to be huge. We’re already getting estimates to put in charging stations, and by 2030 Ford and Mazda are adding over a dozen EV-only models. Autonomous vehicles will change how insurance is structured, and the same vehicles and advanced EVs will require dealerships to overhaul their parts inventory and infrastructure in order to service them. States will continue to update their legislation regarding EVs--many have already done so. And by 2030, autonomous vehicles will represent roughly 25 percent of the total passenger vehicle population.

Another large percentage of cars on the road will be "connected," with data reinforcing critical system components.

Collectively, it’ll be a 360 for the industry. All we can do is prepare for it.

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

The OEM parts dealers recognized by FenderBender readers

{

IN THE WEST

ABC Nissan Acura of Tempe Advantage Dodge Ram Chrysler Fiat Alexander Auto Group Anchorage Chrysler Dodge Jeep Ram Center Arapahoe Hyundai Audi Mercedes-Benz Porsche of Albuquerque AutoNation Beaverton Toyota Bell Honda Berge Auto Group Bill Luke Automotive Dealerships Bill Pierre Ford Seattle BMW MINI of Escondido Bob Smith Auto Group Bob Smith Motors Borman Autoplex Bountiful Mazda Boyland Auto Group Bravo Chevrolet Cadillac Browning Automotive Group Bruce Titus Automotive Group Bunnin Chevrolet Cadillac Camelback Cars Capitol Expressway Auto Mall Car Pros Automotive Group Cardinale Automotive Group Carr Auto Group Carson Nissan Carson Toyota Caruso Ford Cerritos Mitsubishi

August 2021

}

Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming

Cerritos Nissan Chapman Automotive Group Chase Chevrolet Christopher's Dodge World Circle Automotive Group Citrus Motors Corley Automotive Group Coulter Automotive Group Courtesy Automotive Group Crown Dodge Chrysler Jeep Ram Cutter Auto DCH Auto Group Doin' It Right Dealers Don Rasmussen Company Doug's Automotive Group Dublin Auto Group Earnhardt Auto Centers Euromotors Auto Group Evergreen Chevrolet Ford Lincoln Fairview Ford FH Dailey Chevrolet Fiesta Auto Group Findlay Auto Group Firmage Group Automotive Fisher Auto Fowler Automotive Frank Motors Group Freeman Auto Group Fremont Auto Mall Friendly Ford Galpin Motors Garcia Auto Group Garden Grove Kia Gee Automotive Companies

58

Gladstone Mitsubishi Glenn E Thomas Company Gold Coast Acura Group 1 Automotive Guaranty Chevrolet Haddad Automotive Group Harbor Auto Group Hayward Mitsubishi Hendrick Automotive Group Heuberger Subaru Hoehn Motors Holman Automotive Horace Nissan Hyundai House of Imports INFINITI of Denver INFINITI of Oxnard INFINITI of Scottsdale Jerry Seiner Dealerships Jim Marsh Automotive Jim Vreeland Ford Jody Wilkinson Acura John Elway Dealership Group John Hine Temecula Subaru Ken Garff Automotive Group Ken Harvey Auto Group Kendall Automotive Group Keyes Cars Kia of Alhambra Kia of Cerritos Kia of Irvine Kiefer Auto Group Kirby Auto Group LAcarGUY Lamb Auto

fenderbender.com

WEST

Landmark Ford Lanphere Auto Group Larry H. Miller Dealerships Lee Johnson Auto Family Lithia Motors Maita Chevrolet Mark Christopher Auto Center Martin Automotive Group McKenna Auto Group Melloy Auto Group Menholt Auto Group Mercedes-Benz of Littleton Mercedes-Benz of Scottsdale Mercedes-Benz of Temecula Metro Autogroup Michael Hohl Motor Company Mike Hale Family Dealerships Mike Maroone Automotive Group Montano Acura Moore Auto Group Morehart Murphy Auto Center Moreland Auto Group Moss Bros. Auto Group Nate Wade Subaru New Century Automotive Group Nissan of Las Cruces Norm Reeves Superstore Normandin Chrysler Jeep Dodge North County Kia Oakland Acura Oakland Kia Ocean Subaru of Fullerton O'Meara Motors Ontario Volkswagen Ontario Volvo Orange Coast Chrysler Jeep Dodge Ram Orange Coast INFINITI

August 2021

Oremor Automotive Group Oxnard Mazda Pacific BMW Paradise Chevrolet Peak Kia Pedder Auto Group Penske Automotive Group Peoria Ford Peoria Nissan Performance Automotive Perkins Motor Company Perry Automotive Group Pinnacle Nissan Pitre Auto Group Power Ford Prescott Honda Pueblo Dodge Chrysler Jeep Toyota Quality GMC Buick Rector Motor Car Company Reno Buick GMC Cadillac Rickenbaugh Automotive Group Ron Dupratt Ford Roy Robinson Chevrolet Subaru Rusnak Auto Group Rydell Automotive Group Sands Chevrolet Santa Barbara Auto Group Santa Barbara Honda Nissan Santa Fe Kia Santa Monica Audi Santa Monica BMW Santa Monica Buick GMC Schomp Automotive Group Serramonte Ford Serramonte Volkswagen Subaru Shelly Automotive Sierra Auto Cars

59

Sisbarro Dealerships Smith Volvo Cars Sonic Automotive Sterling BMW Stevinson Automotive Group Sunnyvale Ford Lincoln Sunroad Auto Swickard Auto Group Temecula Hyundai Tempe Kia The Brown Auto Group The Faricy Boys Ford The Niello Company Thorson Motor Center Tonkin Auto Group Toyota of Santa Barbara Trophy Automotive Dealer Group Tuttle-Click Automotive Group Underriner Motors Universal Auto Group University Volkswagen Mazda University VW Audi of Seattle Ventura Toyota Ventura Volkswagen Vescovo Toyota of Las Cruces Victory Toyota Volkswagen of Oakland Volkswagen SouthTowne Volvo Cars Bend Webb Automotive Group Wilson Automotive Wise Auto Group Ziems Ford Corners

fenderbender.com

2021 FENDERBENDER’S READER’S CHOICE: OEM PARTS DEALERS

SPECIAL PROMOTION

THE WEST DEALER PERSPECTIVE: FenderBender reached out to a few of the top OEM parts dealers in the West region to take a deeper look at who these suppliers are, what makes them stand apart, and how they see the industry moving forward after the challenging past year.

ANDREW HIRSCHMANN Parts Manager Ken Garff West Valley Chrysler Jeep Dodge West Valley City, Utah

DENISE HAWKE Parts Manager Santa Monica Audi Santa Monica, Calif.

ED LUERAS

Parts Manager Heuberger Subaru Colorado Springs, Colo.

HOW LONG HAVE YOU BEEN IN THE INDUSTRY, AND WHAT IS THE BIGGEST CHANGE DURING THAT TIME? ANDREW HIRSCHMANN: I’ve been in the industry for 25 years. The biggest change is the digital and information world. I started in wholesale, and you’d pick up the phone and it was hard to get people to even fax stuff to you. Now, there are several different programs available and all sorts of things each manufacturer is doing specific to each of them. Now, there’s a much more involved process.

The older you get, you tend to believe things were better back in the day, but in the new information age all the processes and information available from the manufacturer is an amazing tool. Tasks such as inventory control, off-the-shelf fill rates and cataloging have gone through amazing upgrades.

August 2021

DENISE HAWKE: I’ve been in the industry for 35 years and the biggest change is what we’re going through right now. We’ve never had to do business with the doors closed or moving so much business online. Body shops have slowed down a lot but I think that has more to do with technology; cars are loaded with more modules and sensors so we’re not seeing the work we used to come through.

60

ED LUERAS: I’ve been doing this for 36 years. Computer systems and the rise of digital ordering is the biggest change and inventory control has changed along with it. We can’t do anything without computers, and if we lose our power, we lose our internet and we lose the ability to fulfill orders and speak to our vendors and customers. You can’t do business without internet access.

fenderbender.com

WHY DO YOU BELIEVE COLLISION REPAIRERS CONSIDER YOU A LEADING PARTS DEALER? ANDREW HIRSCHMANN: I would hope that it’s our overall customer service. I’m a sports person, and I want to have the right team. Treat people right and you’ll get lifetime customers.

From our notepads to our interpersonal interactions, that’s the goal. Own your mistakes and recruit the right members to the team. I’d put my team up against any team in the world. It’s about education and doing everything in our power to own and fix our mistakes. Our little motto here is saving the world one part at a time.

DENISE HAWKE: Our staff makes Santa Monica Audi wonderful. I tried to find a staff of happy people; we want to break the “grouchy old parts guy” stereotype. I want people to hear the smile in our voices when we answer the phones. We go over and above for our customers—I’ve had people several times on their way home say, ‘You know what? I’m close and I’ll drop that part off for them,’ or even suppliers who choose to take their lunch hours nearby specifically to conduct business. It also helps that we have a large inventory.

ED LUERAS: I think our inventory and our people—we attribute our success to our people answering the phones, our sales people and support staff.

It’s a good crew that cares about what they do and how they do it, day to day.

Happy employees help and it’s the people who make who you are.

August 2021

HOW HAVE THE EVENTS OF THE PAST YEAR AFFECTED THE INDUSTRY?

WHAT CHANGES DO YOU SEE IN THE NEXT FIVE YEARS FOR THE INDUSTRY?

ANDREW HIRSCHMANN: Nothing stopped, really. I was still even or equal on the year. The only thing holding us back is supply; the demand is there. You can’t get new cars and many of the lots are empty or emptying. It’s hard to know what’s next, but people still need their cars fixed. We ran a skeleton crew and understood that nurses had to get to work, and that kept us motivated as business ramped up back to usual. That’s the fixed ops side of it. We stay steady.

ANDREW HIRSCHMANN: I’m scared for the industry as a whole. I think we’re headed toward an ‘08/’09 scenario as we plateau out a bit. How many manufacturers and repairers will get EV vehicles right? The technology is exciting; driverless cars are coming but they’ve not proven safe at all. One in six jobs in this country revolve around the automotive industry and that can’t change. Not everyone will be able to afford EVs and driverless cars, and until the accidents come down, most people won’t want them.

We’re headed to a smarter and more climate-friendly car, but can we supply the batteries? Can we supply the replacement parts? Will we be able to support the manufacture of tomorrow’s vehicle? How do we evolve with the next 18 million cars? I hope we don’t stumble too much. I’m excited for it all.

DENISE HAWKE: It depends on what the new normal is going to be.

What are the laws going to be? I’m working on promoting internet sales and I think that’s part of the future for parts people everywhere. People may have discovered they actually liked not leaving the house. We have concerns about technology causing problems in their vehicles, but there aren’t as many vehicles on the road. We’ll see less wholesale business in the future because there’s less people driving the miles that they used to. We saw our wholesale drop and we expected it to; meanwhile the technology is so advanced that you need specialized equipment and specialized people.

ED LUERAS: It’s starting to affect us now, actually; the pandemic has influenced much of what we’re experiencing, especially with regard to the microchip shortage. The biggest factor going forward that will affect parts departments and fixed ops, period, will be profitability; dealership sustainability is on the table a bit, as we focus to retain as much business and to be as profitable as possible. I think there will be a big focus on customer satisfaction and timely delivery of parts and orders. We’ll also run as lean as possible—if you don’t have any cars to sell, someone has to carry the dealership, but it’s not the first time this has happened. When things crashed in 2008, that same focus remained. We’re prepared for the future.

61

DENISE HAWKE: Electric vehicles are coming. Here in California they won’t be selling non-electric vehicles past 2030, and as everything moves that way nationwide, I don’t know how that’s going to affect our business. Not much occurs with EVs maintenance-wise, so we’re concerned about the viability of some of our partners, our inventories, our customers and ourselves. Along with the e-technology, we’ll continue having more ADAS components, crash sensors and fail-safes. Everything will change but it’s still a few years away.

ED LUERAS: I see a lot of uncertainty, especially regarding technology. With everything becoming more mobile, the industry will change a lot for what breaks and what doesn’t break with these vehicles. Technician uncertainty is a factor; if and when they go electric, many common mechanical issues will simply disappear. There will be more parts replacements and less wearable parts on these cars. You’ll have less crashes due to increased safety.

fenderbender.com

STRATEGY

CASE STUDY

PERFECT HARMONY

Transparency and competition can foster cohesiveness

By PAUL HODOWANIC

R I C H A R D F I S H , O W N E R O F eight Fix Auto Collision Centers in California, has always prioritized team building.

“It’s a priority for any shop that wants to be good at what they do,” he says.

To Fish, the best way to do that has been to keep his employees informed.

Meetings are common across Fish’s locations. An informed staff will lead to more understanding and, in turn, more cohesiveness. He’s also a big believer in competition leading to a connected group, as everyone needs to work together to reach a common goal.

The Backstory

In any business, employees are bound to butt heads. One of the most common ways that is actualized in the auto industry is through conflict between the front of the shop and the back. With two significantly different roles, service advisors and technicians often don’t see eye to eye. Advisors don’t think the techs appreciate the role they play with the customer, and techs don’t think advisors understand the complexities and struggles that come with repair, Fish says. It’s something he’s seen in his shop and tried to address.

The Problem

The problem then becomes, how can shops address it and keep these two groups together, and what strategies can be implemented that boost productivity, continue to prioritize the customer while also fostering cohesiveness amongst the staff?

The Solutions

Prioritizing Transparency One of the biggest causes of internal dispute among Fish’s shops surrounds technicians not thinking of the customer. They often

August 2021

never interact with customers and so naturally they aren’t continually thinking about the customer and how to make their experience the best. Meanwhile the employees at the front of the shop do, and are the face from which customers want answers.

So Fish works to make the shop as transparent as possible for all employees. They have monthly meetings in which they break down all the key performance indicators (KPIs) and talk about what went well and didn’t. Not enough shops do that, Fish says.

“Shops think, ‘Oh, that’s more than they need to know’ or, ‘They’re not educated to understand it.’ I reject all of that,” he says.

Fish also shares eight monthly reports with his employees, relating to the performance of the business. This allows all employees to understand what each other do, hopefully leading to a greater respect for everyone’s role in the business. Fish calls it “pulling from the same side of the rope.”

Many conflicts arise simply out of misunderstanding of someone else’s job expectations, with everyone on the same page, conflicts can be avoided.

Fostering Cohesiveness Through Competition Fish has also found a way to incentivize

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cohesiveness and productivity. Roughly 10 years ago he became frustrated with his technicians not having a sense of the business and not appreciating the customer. So he started a competition centered around customer satisfaction scores.

Each month, technicians were graded based on questions answered by the customer, whoever received the highest score, or customer satisfaction index (CSI), received a $100 bill.

“You would’ve thought I was giving cars away,” Fish says.

Soon it became a montly tradition and it has stuck ever since. Fish has even introduced a yearly CSI contest with larger cash winnings.

But instead of employees becoming competitive with each other to the point of dys-

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function, it has created more camaraderie.

“The only way to get all those numbers is to work together. There’s no other choice,” he says.

Technicians need writers to do their job well to ensure they get a score, and vice versa. Everyone is motivated by the contest, which inherently forces them to work together. That allows them to fully understand and appreciate one another, Fish says.

The Aftermath

OWNER:

The Takeaway

STAFF SIZE:

Conflicts arise when employees don’t understand each other and the business. Their own priorities get in the way, and without a greater knowledge and sensibility of why they’re working things fall apart.

“We serve one master and that master is the customer and we all serve that together,” Fish says.

So through transparency of the business and a little competition that fosters teamwork, while also putting the customer first, cohesiveness follows.

FIX AUTO COLLISION CENTER RICHARD FISH

SHOP LOCATIONS:

8 LOCATIONS IN CALIFORNIA 4–33

SHOP SIZE:

5,000–50,000 SQUARE FEET

AVER AGE MONTHLY CAR COUNT:

45–210

ARO:

$3,000

TOTAL ANNUAL REVENUE:

$22.4 MILLION

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After Fish implemented the competition, he saw a 2 percent increase in the overall corporate CSI. The contest was first presented as a one-off to get technicians to become more aware of how their actions affect a customer’s satisfaction.

It worked so well that it has been

continued and expanded.

All eight of Fish’s shops run the program and it has been an easy way to keep everyone engaged and pulling from the same side of the rope.

August 2021

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Bart Benedetti (L) Body Shop Manager Terry Cullen Owner

“Several years ago, we were moving on from a competitive waterborne refinish system. We interviewed many paint companies and Sikkens was the clear winner. But the product is just the beginning.

What continues to blow our minds is the business and technical support AkzoNobel provides to its Sikkens customers. They meet with us regularly to help us develop a blueprint for success for our entire body shop; and just as importantly, they hold us accountable for keeping timelines we commit to. They’re almost like a board of directors for us. The level of professional consulting that we received from AkzoNobel took us from zero to hero in one year, and it cost us nothing. We’re profitable, we’re growing and we’re smiling.”

How can we help you?

STRATEGY

OPERATIONS

BREAK THE SUPPLEMENT MINDSET

Check all the boxes up front to avoid adding parts or operations mid-repair

By MIKE MUNZENRIDER

more. Just more than 37 percent of shops reported their supplement ratio as 25 percent or more.

In the minority, though, were the 9.5 percent of responding shops that reported an average supplement ratio of less than 5 percent.

There’s a solid argument to be made for minimizing supplements, summed up succinctly by Jered Tucker, owner of Tucker Auto Body & Towing, which has an annual revenue of $3.8 million per year.

“They’re going to cost you money and time and time is money,” says Tucker, who got into

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S U P P L E M E N T S A R E J U S T an unavoidable aspect of collision repair, right?

One might get that impression based on results from the 2021 FenderBender Industry Survey, where 74 percent of responding shops reported they had an average supplement ratio of 11 percent or

August 2021

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STRATEGY

the family business at 16 driving a tow truck and bought out his father to become owner of the Imperial, Calif., shop nearly five years ago.

So how can collision repairers break away from the supplement status quo?

AkzoNobel senior services consultant Tim Ronak argues a change in mindset is needed in how shops approach the early stages of repairs. He says some of the shops with which he works have gotten their supplement ratios down to 3 percent or less.

And then there’s how to actually head-off supplements in the repair planning stage, a process that Tucker has broken down into six steps.

might not tell you they then hit a curb on the left side. [Without that] you’re not even looking for that damage.”

The questionnaire also asks who was in the car at the time of the collision, how it drives, and if any dash lights are lit, Tucker says.

With a more complete picture of the crash in hand, this is where Tucker Auto Body’s six-step repair planning process comes in, in the form of a blueprinting checklist that’s put in every job packet.

“What it comes down to in blueprinting is we’re trying to tell a story, and build that story back together,” Tucker says.

Stop Guessing

1.

So what’s wrong with repairers’ current mindset? Ronak pinpoints the very idea of starting the repair process with an estimate.

“The original estimate is exactly that—if you look up the definition of an ‘estimate,’ it’s a guess,” he says. “It’s not a precise amount, it’s a guess, an approximation.”

Ronak advocates for a much more thorough process up front. That means shops should move away from the very concept of estimating. ”That ‘we’ll get it later’ approach is an ineffective way,” he says, suggesting a much better way to start the process is with repair planning.

“When you’re doing repair planning, you’re no longer guessing,” says Ronak.

“We’re trying to get these guys to be far more detailed in their analysis of damage, and the term ‘estimator’ does a disservice.”

A starting place for getting past the estimate mindset, he says, is through strategic disassembly of every vehicle as it comes into your shop, no matter what.

“Take it apart and then fully document everything that’s required for that repair, at that moment in time,” Ronak says.

Like so many new ways of doing things on the shop floor, that’s easier said than done.

Here’s where Tucker comes in.

2.

3.

The Process

Tucker says that, even before his staff puts its hands on a vehicle, employees first work with customers on the shop’s client relation questionnaire.

“Our first step is we have to communicate with the customer on what happened in the accident,” he says. “Some people might get hit on the right side and they

August 2021

4.

5.

The first checkbox is for the researcher, who, before the vehicle is touched, makes sure its DTCs are covered, checks to see if it needs an alignment and gets it one if need be, and then identifies any missing parts, Tucker says. The researcher also starts the process of pulling repair procedures and diagrams.

Next is disassembly, during which a technician removes R&I parts and puts them in their designated box (the location of which is marked on the floor), putting parts that will be replaced into a different box, Tucker says. Clips from the disassembly are put in bags; damaged clips are marked and bagged and taped to the top of a parts cart. The technician signs off on the checklist that there was a 100 percent disassembly.

The third step is a second look at R&I parts. Another technician works with the tech who carried out the disassembly to double check there’s no damage to those parts. Tucker says this step recently saved time when a tech noticed a parking sensor that had been considered R&I was missing a small tab. “Unless you look at it real close, you can’t tell it’s broken, so we’re trying to catch that little stuff,” says Tucker. The second tech then signs off on the step.

The researcher returns with the diagrams and gives them to the blueprinter so he or she can study them and understand the repair procedures for the vehicle, Tucker says.

Next, a painter takes a look at the disassembled vehicle to flag any

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6.

operations he or she thinks could need to be done. “Say he thinks he needs a blend on the door, at that time he’ll tell them,” Tucker says.

The final step is the repair planner signing off on the entire checklist, at which point the plan is approved, Tucker says.

There’s a simple logic behind that sixstep process, says Tucker, whose shop has an average monthly car count of 100.

“If you put the work in, up front, you’re going to save a lot of time on the backend,” he says.

Makes and Misses

Despite his shop’s thorough and systematic repair planning approach, Tucker says needed parts can be missed, turning into supplements.

He also says the supplement experience is completely different than it was before he put the system into place.

“We’re not ever having to pay for a big part or anything like that anymore,” he says.

“Usually the only thing that’ll hurt us is we missed a little clip and it costs us a day.”

Ronak, who has consulted with Tucker Auto Body & Towing, says damage to mechanical or electrical components can also sometimes be missed because the systems couldn’t be powered up, or final scans show advanced driver-assistance systems that need calibration.

The gains far outweigh the setbacks, Tucker says, explaining that safety issues no longer crop up because repair procedures are pulled up front, and that they aren’t finding bent suspensions late in a job because of the early alignment checks.

Tucker says his shop’s biggest gains have been in time savings and profitability, “Keeping people from doing things twice.”

He also mentions that it has lowered the stress levels of techs and blueprinters, who no longer have to call to tell customers their repairs have been delayed.

Beyond happier employees, Ronak says minimizing supplements also creates happier customers.

“Nobody likes a surprise at the end and our industry has been built on the idea that we’ll tell people one number and just wait, it’ll change,” he says.

Says Ronak, “Supplements create mistrust.”

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ProColor Collision franchises are not currently being offered for locations in Hawaii, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin, or to residents of these states.

COLUMNS

IN THE TRENCHES

On Goals and Hansei Improving goals needs to start with yourself

JOE GRETO

Many of you know that I am a student of lean

practices. For the last 15 years or so, I have been given the wonderful opportunity to design and implement lean systems for the body shop environment.

One of the main building blocks of lean revolves around the idea of continuous improvement and constant evolution so that the business grows, and so do the stakeholders in the business.

In order to gauge the amount of value we derive from improvement models and their implementation, I have learned to go beyond the quick-check model of setting a goal and then sometime in the future assessing if the goal was met or not. Goal setting is important, of this there can be no doubt.

But a habit of reflecting on my intentions, what I did about them, the results, and what I learned along the way is a great supplement to the goal setting process. Lean practitioners use the Japanese word for this concept of self- reflection: hansei.

Hansei as a concept is hard to translate. If you break down the words, “han” can mean turn over, or turn upside down and “sei” can mean reflect on or examine oneself. In Japanese culture, it can mean acknowledging one’s own mistakes and pledging improvement. In the world of lean, hansei is a continuous but subtle form of meditation and self-reflection focusing on past mistakes, outlining plans to correct the mistakes, and promising oneself to act on those plans.

Before you think of me as some sort of dude that sits around cross-legged in a lotus yoga pose chanting “Om” every chance I get—forget about it. I leave the yoga stuff to my wife.

I do make a habit of practicing hansei about every six months. My method is to walk, think, write down some notes, and then make course corrections to my intentions as needed. Often the current reality is far different than the expectations that were set six months prior.

The last year and half for me has been a challenge primarily because the context of daily life has been so unrelentingly abnormal. Practicing hansei has been a struggle but I suppose it is such an ingrained habit for me that I kept it up. This contrasts with a few other good habits that I let slip during the last 18 months, habits I seriously need to rebuild.

The thing is, those good old habits and routines are not going to look the same as they did in early 2020.

August 2021

For many people, the rebuilding of exercise routines, healthy eating regimens, and other good habits will be difficult because they were dropped for so long. It is not like bouncing back from dropping good habits over the Thanksgiving and Christmas holidays. With that in mind, I recently chose to decrease the time between my hansei sessions and now am doing them on a monthly basis instead of every six months. I hope to gradually revert to a semiannual routine, but right now there is tremendous benefit in making course corrections more rapidly in the current environment.

In business, hansei is a critical part of becoming a learning organization. Hansei is a vital element of kaizen (continuous improvement) and of creating a culture of curiosity. Here the emphasis is on what went wrong and what must be done to make sure it does not reoccur. It is a touchy process to implement because if it is handled incorrectly employees are going to feel personally attacked when flaws are pointed out. If the employee feels the focus is on “who” went wrong instead of “what” went wrong, you are doomed.

Toyota is, of course, one of the preeminent practitioners of lean. Hansei is inculcated into the entire organization but is still a hard concept to understand. One of their American program managers, Andy Lund, was able to explain the concept this way: “People who have not been to Japan may not understand that the objective is not to hurt that individual but to help that individual improve—not to hurt the program but to show flaws to improve the next program. If you understand that deeply, you can get through that constructive criticism. No matter how good a program or a presentation someone makes, we believe there is always something that can be improved, so we feel it is our obligation. It is not an ‘obligatory negative’ but an obligatory opportunity to improve—it is the heart of kaizen.”

If you decide to explore the idea of introducing hansei in your business, I recommend that you start with yourself. There are several levels of hansei that range from rapid and brief reflections on decisions made, tasks completed, lessons learned, to direct and honest reviews of performance and results, all the way up to the meditative self-reflection and introspection that I describe earlier. Once you begin the practice of hansei in your personal life, it will become so much easier to introduce it in your professional life.

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S T E V E M O R R I S is regional director for Classic Collision of California. He is an Accredited Automotive Manager (AAM) and ASE-certified master technician.

EMAIL:

stevem@prideautobody.com

ARCHIVE:

fenderbender.com/morris

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MaxiSYS IA800 Intelligent ADAS 4-Step Calibration Precision

Regarding the calibration of Advanced Driver A ssistance and a standing target component is placed in the front or to the Systems (ADAS) components, there are two essential ser vicing side of the vehicle, depending on the vehicle make, model and concepts: follow the prescribed vehicle manufacturer instructions year. The MaxiSYS tablet, now placed securely on the frame, is and document ever ything from pre-calibration setup to postpaired with the cameras. calibration validation.

The system recognizes the positioning targets and calculates The Autel Standard Frame ADAS Calibration System and the the current angle, distance and offset position of the frame to MaxiSYS IA800 Intelligent ADAS optical positioning system adaption the vehicle. The technician follows the onscreen instructions to package, when combined with the Autel calibration software, enable move the frame or adjust its angle until the current values match technicians to perform these procedures via the most efficient and the required values. Checkmarks display for each parameter once affordable calibration solution in the industry. the required position values are met, and that’s The system’s inherent capabilities provide the it— the vehicle is ready for calibration. Compare technician with an efficient and intuitive ADAS that setup with one using mechanical tools such calibration workflow. as plumb bobs and measuring tape that takes 40 “The MaxiSYS IA800 The IA800 employs six high-resolution minutes on average. uses a simple four-step cameras, positioning targets and components, and alignment Pre-Check and Frame positioning Perform calibration process.” software to transform Autel’s Standard Calibration Perform camera, radar, lidar and night vision frame into a precise, efficient and complete— component calibration with any MaxiSYS tablet from Pre-Check to Reports—calibration system. with ADAS calibration software.

It’s a four-step process: Pre-Check, Position, Perform and Provide. Here’s a quick overview of each step.

Provide “Make sure you document every step” is the consistent thread Pre-Check mentioned in all ADAS calibration training. Documentation is Proper vehicle alignment is essential to the calibration of all ADAS essential as it encourages insurance companies to expedite components. The thrust angle, calculated in reference to the vehicle’s payment, insulates the shop from unsupported lawsuits and assures rear axle, determines its direction as it travels down the road. Further, existing and potential customers that the safety of their vehicles this reference enables the correct centering and position of the frame and, therefore, the safety of their families is foremost in the shop and its targets/patterns when positing the calibration frame and its owner’s mind. patterns/targets to the vehicle.

Autel’s Pre-Scan identifies all systems with faults and lists PrePre-Check uses the IA800’s camera system and targeted wheel Check values. Post-Scans identify all systems to illustrate that clamps attached to all four wheels to determine the vehicle’s current existing faults were cleared and none introduced during repair. alignment specifications and compares them with the vehicle Calibrations are documented in detail with the date/time of these manufacturer’s allowed tolerances. If within OE-specified tolerances, calibrations, statement of the success of the calibration and the technician can proceed to optical positioning of the frame to the depending on the vehicle, include OE calibration tolerance range vehicle. The alignment information is added to the Pre-Scan report. and the live data/actual reading of the device when calibrated.

Autel designed this system to enable technicians to perform every Position vehicle calibration with confidence and ease. And from pre-check to Wheel clamps with camera targets are attached to the rear wheels, documentation, every step is completed with precision.

August 2021

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Have You Been to the Dentist Lately?

An ultraviolet revolution

BY THOMAS M. VAN DER KOOIJ

When’s the last time you took your kid to the dentist? I bet it’s been output, meaning it’s best to use a longer wavelength when Fast Curing awhile for some with older children. If that’s the case, you might to protect from any potential harm of UV radiation to the body. find it interesting to learn that the process of repairing cavities has The main attraction of UV Fast Curing is time. You save a significant evolved a bit. amount of time through this process as there is virtually zero time As a parent, I remember dragging a soda-addicted, candy-obsessed spent waiting for your material to harden. It’s a nearly instant reaction. child to the dentist’s office as they clenched their rotted teeth in There is also no restriction in terms of a timeframe. You get to work at anticipation for a cavity filling. Back in those days, when you had a your own pace and take the time you need to get the job done right. massive ditch to fill in your tooth, it was done with a silvery, metallic UV Fast Curing eliminates the necessity for a two-component material called amalgam. adhesive or putty that needs to be mixed. UV curing materials It was a tedious and uncomfortable process, in addition to being are made with either zero or limited solvent content. Colad has miserably long and time-consuming. It had to be mixed first before designed an all-inclusive, comprehensive UV Fast Curing System. As application and then took several hours before drying far as I’ve seen, it is the most thorough UV system completely. The wait time was excruciating. on the market.

As with most industries, advances in technology This is a much more convenient and user-friendly “Fast Curing with have prompted immense growth and development in process (not to mention more accurate) as there are UV light is the hopes of breaking away from the conventional way of less steps to take. It also eliminates the need for technological doing things (like silver amalgam dental fillings) into mixing extra product or materials, ultimately saving more practical and efficient processes. on both cost and storage space. This will change the revolution the The development and continued understanding repair process forever. automotive refinish of ultraviolet light (UV light) is one of the many As of now, UV light and Fast Curing are options. If industry needed.” technological advances manipulating change across you’re used to the old way of doing things, you still a number of industries. can. You have the option of amalgam at the dentist’s —Thomas M. van der Kooij When it comes to dentistry, UV light has completely office if you so choose. But why would you? modernized certain practices, such as cavity-filling.

With UV Fast Curing, you can fix a small dent or Instead of the several-hour wait time and use of rock chip on a door panel in a fraction of the time metal-material, ultraviolet light allows for an exponentially quicker opposed to the classic repair technique. It cannot be understated how process with safer materials. monumental this innovation has already become, not to mention the So, what is UV light? It’s a portion of the light spectrum undetectable potential for the future of the industry. to the human eye with a wavelength ranging from 100 nm (nanometers) This is a revolution, of sorts, targeting various antiquated methods to 400 nm. It is used in a number of industries, including collision and processes of the past to adapt and improve. Why put off the future repair, acting as a catalyst in the Fast Curing process. when you can make it your present? Throw on your UV-safe goggles, UV Fast Curing utilizes ultraviolet light in conjunction with open your eyes to ultraviolet light and allow the UV Fast Curing System UV curable resins. When exposed to the light the resins undergo to be the way of your future. a chemical reaction allowing them to polymerize and bond to a substrate, changing from its liquid state to a solid state.

Thomas M. van der Kooij is Managing Partner at EMM Specialties. EMM is the The photoinitiator within the UV resin is what reacts to UV light, parent company of Colad, a brand that develops innovations essential for meaning the chemical reaction won’t begin until the material is effective and efficient paint applications. They’ve brought you brands like exposed to UV light. The shorter the wavelength, the higher the BodyGuard®, Turbomix Paintsaver™, and the Colad Snap Lid System®.

August 2021

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The Ever-Growing Importance of OEM Certification Prepare for the future by certifying your shop

BY JENNIFER JARZEMBOWSKI

Rising above the crowd in today’s highly competitive collision repair unbiased options of tooling and equipment. market is no easy task. While talent, perseverance and hard work are a It’s important to note that certification is an ongoing investment. There must, it also helps to have an edge or some sort of differentiating factor. are recurring on-site inspections and evolving requirements. While this can For many collision centers, that difference is OEM certification. require a significant amount of time and money, it can be viewed as a longAn increasing number of collision repair facilities recognize the term investment in a facility’s future. importance of not only the return on investment of certification programs, but also the relationship with the OEM and return on objective. Disruptive OEM Certification In Action technologies such as CASE mobility (Connected/Autonomous/Shared/ The Tom Wood Group Collision Center in Indianapolis is an expansive, Electric), Virtual and Augmented Reality, AI and others are becoming 75,000 square-foot facility that handles the repair and refinish work for the more and more complex and advancing at an exponential rate. Collision company’s multiple car dealerships. OEM certification, currently at 17 brands, centers must evolve alongside these technologies or risk meant getting a leg up on the market and the competition. being left behind.

“With OEM certification, we have access to up-to-date The solution for many shops is OEM certification. To OEM information to properly repair vehicles,” says Aaron perform a safe and proper repair, shops need proprietary Colburn, the center’s general manager. “This provides our “For some repairs, parts and equipment, training, and access to the customers with peace of mind knowing their car or truck OEM certification manufacturer’s repair procedures. OEM certification can will be correctly restored to pre-damage condition—which be a lengthy and costly process, but it’s a worthwhile helps build brand and customer loyalty.” is a must.” investment for facilities who want to increase their visibility Colburn explains that for some repairs, OEM certification and position themselves as repair experts. is a must. “When it comes to brands such as Lexus and “The pursuit of OEM certifications can be a confusing Jaguar, for example, if you aren’t certified, you don’t have and cumbersome process,” says Tom Wolf, PPG director of access to proprietary parts and equipment. As a result, you business development. “Facilities today have many valuable can’t take on these repair opportunities.” resources available to help them make informed decisions throughout their journey.”

The Bottom Line—Is OEM Certification Worth It? When you look at where the collision repair industry is heading, the Becoming OEM Certified simple answer is yes. With the rapid advancement of technology and the The OEM certification process starts with a manufacturer reviewing what a complexity of materials, a facility will need to invest in equipment and collision center already has in place. In some cases, the facility may need to training regardless of certification to properly repair a vehicle to preacquire additional equipment for work on a particular make or model. That accident condition. So if certification makes sense for your company, could mean changing a building’s entire footprint. it should be pursued to help drive business to your facility—and build The facility’s existing refinish system also comes into play. Some your brand.

OEMs require that facilities use a refinish system that’s been approved for warranty work. PPG, for example, works closely with OEMs to establish refinish systems that meet their approval requirements. As a result Jennifer Jarzembowski joined PPG in 2018 as National Account Manager, of thorough testing, each of PPG’s premium solvent and waterborne OEM After Sales. She advises body shops on OEM certification requirements, systems—the DELTRON ®, ENVIROBASE® High Performance and AQUABASE® including equipment and training. She also trains the PPG sales team on Plus brands—is approved by all major OEMs. these requirements. With more than 13 years of experience working with PPG can provide customers with valuable guidance throughout the shops across the nation, Jennifer offers a wealth of knowledge. Her goal is OEM certification process. This includes (but is not limited to) choosing the to bring value and profitability to already-certified shops and those seeking proper programs to pursue based on a specific market and exploring the certification. jjarzembowski@ppg.com August 2021

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Set Your Sights on Superb Customer Experience Foster relationships, not transactions

Customer service has always been the backbone of a superior customer experience. Today’s customers seek a predictable and consistent experience when they choose to do business with a company—not a situation that leaves them questioning if they made the right choice.

Here are 10 initiatives that body shops can employ to achieve operational efficiency in this important but overlooked area.

CONSISTENCY IS KEY Doing something different every time causes inefficiencies. Not only will your business suffer, but your customers will feel the effects too. It could be the difference between retaining a customer or losing them to a competitor.

LISTEN FIRST, ACT LATER Accidents can be traumatizing. If you are serving a customer who has been in an accident, it is essential to recognize the human in yourself. All money and repairs aside, someone else is suffering. Be a listener. Offer empathy. Offer assurance.

EXAMINE AND EVALUATE How do your customers feel? More importantly, how do your employees feel? Conduct an in-depth analysis at each point of service and dialogue to understand your current baseline. Skip the customer surveys and survey your employees. After all, they are first-hand witnesses to your customers’ complaints and praises.

CREATE A MISSION STATEMENT Mission statements for customer service often get overlooked. Your staff may equate a customer’s happiness with an excellent repair job but the overall customer experience is far more complex than fixing a dent in a vehicle. Creating a set of customer-focused goals will help clarify the mission for your team.

MAKE IT A PRIORITY Don’t wait until customer service becomes a problem to start caring about it. Place customer service at the forefront of your business model and if you want to see real results, prioritize customer service every single day.

PERSONALIZE CUSTOMER EXPERIENCE Ensure that your business is easily accessible from all angles. Whether it be valuable information online or direct communication with your team, make sure your customers have all “Collisions are the resources at their fingertips to get their questions everyone’s answered.

worst nightmare but creating a comforting experience in your body shop can help to alleviate your customer’s trauma.”

CONTINUE THE ENGAGEMENT Interacting with your customers online shows that you care and value their opinions. Encouraging your customers to ask you questions on social media builds a sense of trust. By embracing an omnichannel mindset, you have the power to provide consistent and dependable support to your online customer community.

ACCLIMATIZE A TOP-DOWN APPROACH Delivering a superior customer experience relies on several different aspects, many of which start internally. Business leaders should model the significance of customer-centricity and set the standard that employees can follow and lead with confidence.

THINK GLOBAL, ACT LOCAL Committing to a superior customer experience will continue to evolve as customer expectations increase.

Defining standard methods and procedures, developing various tools and templates, and providing training to staff are vital steps to maximizing consistency. If all locations operate in the same manner the outcome is a given and the business grows. Always be open to continuous improvement and evolution.

EMPOWER EMPLOYEES Empowering your employees inspires the value of responsibility and the authority to resolve customer complaints and issues quickly. Allow your employees to do whatever it takes to keep the customer satisfied.

Steve Leal is the President & CEO of Fix Network World, the leading global automotive aftermarket services network which includes ProColor Collision.

The family of brands spans over 2,000 points of service internationally. In the United States, Mondofix, Inc. has granted an exclusive license to 79411 USA LLC to the FIX AUTO brand.

August August 2021 2021

—Steve Leal

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Don’t Sell—Help Offering additional services for collision repairs

Collision repair shops sometimes offer additional services to their customers who may be unaware of items that need attention. While it is your responsibility to point out legitimate issues, the way you do so makes all the difference in the world. The key for offering additional services is to focus on helping your customer maintain the health and appearance of their vehicle by using a collaborative, consultative style.

to take care of their vehicle. And you have helped the customer by offering a way to save some time and money.

PUT YOURSELF IN YOUR CUSTOMER’S SHOES When recommending additional collision repairs, it is important to consider the impression you make on the customer. People hate to be sold, but they love to buy. Put the offer in the context of helping the customer make an informed buying decision, and this will make their buying experience more enjoyable.

According to Ryan Taylor, CEO of Bodyshop Booster, customers are more afraid of making a wrong decision than they are of spending money. “The idea of ‘scarcity’ can help the customer make the right decision. If consumers feel that there is a short period of time to take care of a special one-time offer, they will make their decision,” Taylor says. “And don’t forget to ask the customer if they want to schedule the job. Otherwise, they think you don’t want their business.”

USE TECHNOLOGY TO LEND A HELPING HAND When you offer to help your customer, you establish your competence.

Scan tools like Toyota Techstream lend credibility to your advice and build your customer’s confidence in you. Use the scan tool to produce an instant pre-repair vehicle “Health Check,” which will give you reliable information to share on diagnostic trouble codes (DTCs) that you should address while the vehicle is in your care.

Mike Anderson, CEO of Collision Advice, offers practical advice on how to effectively share pre-repair scan data to partner with your customer in making sound repair and maintenance decisions. “The way that you present the information from the report is critical,” explains Anderson. “Here’s an example: depending upon climate, about 20 percent of the vehicles that come into the repair shop are on the verge of needing a new battery. The pre-scan checks the voltage state of the vehicle’s battery. If it looks like the vehicle will need a new battery soon, don’t sell: offer help!”

Anderson advises that your conversation with the customer should go something like this: “At our shop, we use a state-of-the art scan tool to check the health of your vehicle before starting a repair. This helps us identify how the collision may have impacted the vehicle’s electric components. Your vehicle health check shows that you will need a new battery soon. You don’t have to do it right away. But, if you choose to replace the battery today, you’ll have labor savings because we need to remove the battery to repair the collision damage anyway.”

Then, offer to email a PDF of the scanning report. The result? You have demonstrated to the customer that their vehicle’s health is your priority. You have reassured them that you have the right expertise August 2021

USE CHECKLISTS TO IDENTIFY NECESSARY REPAIRS & ADDED VALUE SERVICES When your customers take delivery of their vehicles after repairs are complete, they expect them to be in perfect operating order. If they find an issue, they can lose faith in both your facility and the vehicle itself.

It is in the shop’s best interest to make the customer aware of repair or maintenance needs to keep the vehicle in proper running condition and keep the customer happy. Your shop can use a checklist process to point out other areas of the vehicle that need repairs or paint, outside the insured damaged area, to make the overall vehicle look new again.

CONSULTATIVE SELLING VS UPSELLING While upselling focuses on selling the product, consultative selling prioritizes relationships and opens dialogue to serve your customer’s needs. Remember to focus on the customer. Afterall, you are the expert. By alerting the customer to additional enhancements or possible issues, you can build their confidence in you, your shop and their Toyota.

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COLUMNS

OUTSIDE THE LINES

Is Safety First?

Four signs to avoid imminent disaster collapse in Miami will be old news. But right now while I’m writing this, it’s hard to escape some of the images from the devastation there. There are already reports that people reported that the building needed structural repairs years ago. Even without having a personal connection to the people who live there, it can still be easy to get angry that someone put profits ahead of the residents’ safety.

As I thought about that last point—profits ahead of safety—it made me pause and think about the similarities in our industry. There are articles that show up every day in our inbox about innovative technology and designs in today’s modern vehicle. How many of us are paying attention to these warning signs?

If you think I’m making an unfair comparison of a building collapse versus an unsafe vehicle repair, I challenge you to do a google search with the keywords “John Eagle Honda lawsuit” and read the articles. Sure, the final death toll of the condominium collapse will be far higher than any twovehicle accident, but the point I’m making is, how many people are depending on us to make the correct decisions to keep them safe? Depending on the size of your shop, your decisions might be affecting hundreds or even thousands of lives per month.

So, what are the warning signs to which we need to pay attention?

This is not your dad’s body shop.

My dad was sitting in our office the other day and he was listening to me talk to a third-party calibration company as we were troubleshooting a DTC. My dad made the comment, “I can’t believe how much you have to know these days to repair a vehicle.” I wrote a tribute to my dad several months ago, and in case you didn’t read it, my dad always felt there was just one way to repair a vehicle, and that is the right way. But nowadays, the “right way” isn’t always so obvious. Gone are the days of simple repairs where we just had to make sure the panels were prepped correctly and we chose the correct amount of welds.

Research is the key.

If you don’t spend time on the front end of a repair reading OE websites for information on what can and can’t be done to a vehicle, I am go-

August 2021

ing to tell you that it’s almost certain that you are repairing vehicles incorrectly. There is not a week gone by that we aren’t learning something new and, most of the time, what we learn is something we would have never guessed without reading the OE repair procedures. History or experience is no longer our teacher; they’ve been replaced with OE websites. If you aren’t reading OE repair procedures, I challenge you to take just one week and research each vehicle in your shop and see what turns up. See how many bumper covers you thought you could repair only to find out the manufacturer says they can’t be repaired due to what lying behind them.

You are in charge.

If you are most concerned with a report card showing how much you repair versus replace, then you are not in charge. Still, the responsibility falls on your decisions. Can you imagine if the person responsible for making the necessary repairs to the condo in Miami defended himself by saying the residents didn’t want to pay $20 more per month in fees to make the necessary repairs? He would not be let off the hook by passing the blame to the bill payer. And that goes for liability even moreso.

If you deliver a vehicle with a final bill with your name on it, the liability falls on you. Yes, even if you get a third party to calibrate an ADAS feature, you are still liable if the third party doesn’t do the calibration correctly. Since we are in charge, it would be good to know what should be done to safely repair the vehicle.

Safety should always come first.

If you prioritize the safety of the people in and around the vehicles we work on, it will have a dramatic impact on the decisions you make. It will cause you to perform operations that the bill payers will fight you on, or refuse payment on certain procedures. When that happens, ask yourself what you would want your doctor to do in the middle of operating on you if they knew something needed to be done that the insurer questioned.

In our industry, if we aren’t thinking safety first, behaving as if we’re in charge, or treating it like it’s our dad’s body shop, we are headed for destruction. Just like the condo building in Miami, many people will be affected by our decisions.

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J A S O N B O G G S is the

owner of Boggs Auto Collision Rebuilders in Woodbury, N.J. He has attended the Disney Institute and Discover Leadership, and has studied lean manufacturing processes.

EMAIL:

jason@boggsauto.com

ARCHIVE:

fenderbender.com/boggs

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