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Industry Year in Review—A Month-by-Month Look at the Most Interesting Collision News of 2012 by John Yoswick
A lot happens in the collision repair industry, so trying to compile it all into a single year-end review is a challenge. But here’s our look at what we saw as among the most important or just plain interesting and memorable news item, event or quote from each of the last 12 months.
January State Farm’s George Avery announced that his company is testing the electronic parts ordering system “PartsTrader” with two collision repair businesses. He declined to identify the shops, saying that it
is too early in the testing “to put those folks under the microscope and ask, ‘What do you think of the new system?’” Lots of shops have since voiced what they think of the system. By the end of the year, the program was being George Avery rolled out to a fifth market (Chicago) for a total of about 600 Select Service shops.
February John Borek of Autocraft Bodywerks in See Year in Review, Page 23
Northeast Shops Still Recovering from Sandy
See Still Recovering, Page 10
P.O. BOX 1516, CARLSBAD, CA 92018
When Hurricane Sandy charged into the East Coast in late October, she devastated many homes and businesses. Her most vicious attack was perpetrated in NY and NJ, leaving millions with flooded properties and no power. Sandy’s effects on the auto body industry were no different. Many collision repair facilities in the area were destroyed, and equipment and tools were demolished. Some still had not reopened as of the middle of December. Three shop owners took the time to share their stories.
Bobby Zigman, owner of Collision Depot in Oceanside, NY, suffered personal and business losses as a result of Sandy since his home is near his shop and both were flooded. Zigman notes that the storm left five or six feet of water in his shop and parking lot, completely wiping out all of his shop and office equipment. Though Collision Depot technically remained open after the storm, the flooding ruined equipment and lack of both phone connections and electricity prevented them from performing any actual repair work for about two weeks. Zigman’s dedicated
Change Service Requested
by Chasidy Rae Sisk
VOL. 3 ISSUE 11 JANUARY 2013
New Alabama Collision Association Launches Consumer TV Advertising Campaign
Alabama repairers who recently formed a new association called ALARISE (Alabama Automotive Repair Industry Society of Excellence) recently launched a new advertising campaign with a commercial airing through December on the largest cable network in central Alabama. The campaign aims at consumer awareness. To watch the commercial, go to www.alarise.com. ALARISE held a meeting for 30 founding and charter members Dec. 8. The meeting included presentations by Charter Media Account Executive Torrie Grelle, Collision Automotive Repair Services, Inc. Operations Director Matt Boyles and attorney Kirby D. Farris from the law firm of Farris, Riley & Pitt, LLP. Grelle provided details about the ALARISE commercial currently air-
ing and the reach of the campaign (250,000 households) with over 800 commercial spots purchased. Boyles provided an overview of how a shareholder of CARS can benefit. Boyles discussed the intent in the formation of CARS and how, as a group, benefits can become more available as compared to an individual. Boyles discussed the opportunities of how CARS can assist ALARISE. Attorney Farris provided information to the group on Alabama law and how issues faced by individual business members of ALARISE could be addressed. Farris also provided a comparison of the mirror image of the medical insurance industry of 15 years or so ago to today’s automotive insurance industry. Comparison of the two industries issues of rates and requireSee ALARISE, Page 5
GCIA Reviews the Events of 2012, Expects Another Busy Year in 2013 As the Georgia Collision Industry Association looks back at 2012 and closes a busy year, the association is already making plans for 2013. Here is a recap of the events that the GCIA held in 2012: ● In January, Dave Gruskos from Reliable Automotive Equipment spoke to members regarding the new repair technology in today’s industry. He spoke about the new highstrength steel that is now involved in the production of many of the vehicles on the road today and the new tools, training and materials needed to repair them. ● In March, the GCIA conducted its sixth annual labor rate survey of the Metro Atlanta area. 292 Metro Atlanta shops completed the survey online or were contact by CSi Complete. According to the results, the average Metro Atlanta rates were $42 on body and refinish labor and $30 on paint and materials. • In March, Rick Palmer from Computer Logic discussed paint and material compensation and how the rule of thumb method (Refinish Hours x Material Rate) was outdated and does not take into accounts special colors,
tri stage and various other factors. Several states have used Palmer’s PaintLogic program to invoice the insurance companies and be paid properly for paint and material. ● In May, GCIA members attended the Georgia Insurance Property and Casualty Advisory Committee at the Georgia Insurance Commissioner’s office. The association was able to address paint and material caps, sales tax and the manipulation of the databases. In addition, the GCIA scheduled an additional meeting with P&C director Steve Manders to discuss these issues ● In June, Ray Gunder, Barrett Smith and Attorney Brent Geohagan provided a special legal presentation to teach members how to take their businesses back from insurer influence and learn how to address short pays and breach of contract. This was a well attended meeting with over 80 people in attendance. ● In August, several GCIA board members met with Senator Jack Murphy to discuss many issues that are affecting Georgia consumers. The association discussed P&M caps, See GCIA Recap, Page 37
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